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
  5 mg/sh/8

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
  4  1 mg:rj/sh/8