Senate File 285 - Introduced
SENATE FILE
BY HOUSER
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the imposition of a countywide hotel and motel
2 tax.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2799SS 81
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PAG LIN
1 1 Section 1. Section 423A.1, unnumbered paragraphs 1 and 4,
1 2 Code 2005, are amended to read as follows:
1 3 A city or a county acting on behalf of the unincorporated
1 4 areas may impose by ordinance of the city council or by
1 5 resolution of the board of supervisors, if approved by the
1 6 voters as provided in this section, a hotel and motel tax, at
1 7 a rate not to exceed seven percent, which shall be imposed in
1 8 increments of one or more full percentage points upon the
1 9 sales price from the renting of sleeping rooms, apartments, or
1 10 sleeping quarters in a hotel, motel, inn, public lodging
1 11 house, rooming house, manufactured or mobile home which is
1 12 tangible personal property, or tourist court, or in any place
1 13 where sleeping accommodations are furnished to transient
1 14 guests for rent, whether with or without meals; except the
1 15 sales price from the renting of sleeping rooms in dormitories
1 16 and in memorial unions at all universities and colleges
1 17 located in the state of Iowa and the guests of a religious
1 18 institution if the property is exempt under section 427.1,
1 19 subsection 8, and the purpose of renting is to provide a place
1 20 for a religious retreat or function and not a place for
1 21 transient guests generally. The tax when imposed by a city
1 22 shall apply only within the corporate boundaries of that city
1 23 and when imposed by a county shall apply only outside
1 24 incorporated areas within that county. However, a county may
1 25 impose a countywide hotel and motel tax at a rate of one or
1 26 two percent by resolution of the board of supervisors, if a
1 27 countywide vote is held and a majority of those voting on the
1 28 question of imposition vote in favor of the imposition. This
1 29 countywide tax is in addition to any tax imposed by the city
1 30 or by the county outside of incorporated areas. "Renting" and
1 31 "rent" include any kind of direct or indirect charge for such
1 32 sleeping rooms, apartments, or sleeping quarters, or their
1 33 use. However, the tax does not apply to the sales price from
1 34 the renting of a sleeping room, apartment, or sleeping
1 35 quarters while rented by the same person for a period of more
2 1 than thirty=one consecutive days.
2 2 A city or county shall impose a hotel and motel tax or
2 3 increase the tax rate only after an election at which a
2 4 majority of those voting on the question favors imposition or
2 5 increase. However, a hotel and motel tax shall not be
2 6 repealed or reduced in rate if obligations are outstanding
2 7 which are payable as provided in section 423A.2, unless funds
2 8 sufficient to pay the principal, interest, and premium, if
2 9 any, on the outstanding obligations at and prior to maturity
2 10 have been properly set aside and pledged for that purpose.
2 11 The election held by a city shall be held at the time of the
2 12 regular city election or at the time of a special election.
2 13 The election held by a county shall be held at the time of the
2 14 county's general election or at the time of a special
2 15 election.
2 16 Sec. 2. Section 423A.2, subsection 2, Code 2005, is
2 17 amended to read as follows:
2 18 2. All moneys in the local transient guest tax fund shall
2 19 be remitted at least quarterly by the department of revenue,
2 20 pursuant to rules of the director of revenue, to each city in
2 21 the amount collected from businesses in the tax imposed by
2 22 that city and to each county in the amount collected from
2 23 businesses in the unincorporated areas of the tax imposed by
2 24 the county.
2 25 Sec. 3. Section 423A.2, subsection 4, paragraph f, Code
2 26 2005, is amended to read as follows:
2 27 f. A city or, a county acting on behalf of an
2 28 unincorporated area, or a county acting on behalf of the
2 29 entire county may, in lieu of calling an election, institute
2 30 proceedings for the issuance of bonds under this section by
2 31 causing a notice of the proposal to issue the bonds, including
2 32 a statement of the amount and purpose of the bonds, together
2 33 with the maximum rate of interest which the bonds are to bear,
2 34 and the right to petition for an election, to be published at
2 35 least once in a newspaper of general circulation within the
3 1 city, or unincorporated area, or entire county, as applicable,
3 2 at least ten days prior to the meeting at which it is proposed
3 3 to take action for the issuance of the bonds.
3 4 If at any time before the date fixed for taking action for
3 5 the issuance of the bonds, a petition signed by eligible
3 6 electors residing in the city or the unincorporated area of
3 7 the county where the tax is imposed equal in number to at
3 8 least three percent of the registered voters of the city or
3 9 unincorporated area of the county where the tax is imposed is
3 10 filed, asking that the question of issuing the bonds be
3 11 submitted to the registered voters of the city or
3 12 unincorporated area of the county where the tax is imposed,
3 13 the council or board of supervisors acting on behalf of an
3 14 unincorporated area shall either by resolution declare the
3 15 proposal to issue the bonds to have been abandoned or shall
3 16 direct the county commissioner of elections to call a special
3 17 election upon the question of issuing the bonds.
3 18 The proposition of issuing bonds under this section is not
3 19 approved unless the vote in favor of the proposition is equal
3 20 to a majority of the vote cast.
3 21 If no petition is filed, or if a petition is filed and the
3 22 proposition of issuing the bonds is approved at an election,
3 23 the council or board of supervisors acting on behalf of an
3 24 unincorporated area may proceed with the authorization and
3 25 issuance of the bonds.
3 26 Bonds may be issued for the purpose of refunding
3 27 outstanding and previously issued bonds under this subsection
3 28 without otherwise complying with this paragraph.
3 29 EXPLANATION
3 30 This bill authorizes the county to impose a countywide
3 31 hotel and motel tax at a rate of 1 or 2 percent. Present law
3 32 allows a local hotel and motel tax to be imposed up to 7
3 33 percent by a city in that city or by a county in the areas
3 34 outside of any city.
3 35 LSB 2799SS 81
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