House File 494 - Introduced



                                       HOUSE FILE       
                                       BY  FORD


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the locally imposed hotel and motel tax by
  2    increasing the rate allowed and requiring local governments to
  3    comply with the Iowa targeted small business procurement Act
  4    in spending revenues from the tax.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2757HH 82
  7 mg/cf/24

PAG LIN



  1  1    Section 1.  NEW SECTION.  423A.4A  ADDITIONAL LOCAL HOTEL
  1  2 AND MOTEL TAX.
  1  3    Notwithstanding the requirement in section 423A.4 that a
  1  4 city or county shall only impose a hotel and motel tax after a
  1  5 favorable election, a city or county that has imposed,
  1  6 pursuant to section 423A.4, a hotel and motel tax at the
  1  7 maximum rate of seven percent may impose an additional tax at
  1  8 the rate of two percent without an election.  To impose this
  1  9 additional tax, the governing body of the city or county shall
  1 10 provide notice of its intention at least sixty days prior to
  1 11 the imposition of the tax by ordinance of the city council or
  1 12 by resolution of the board of supervisors.  The additional tax
  1 13 shall be imposed on January 1 or July 1 following notification
  1 14 of the director of revenue.  The additional tax shall be
  1 15 repealed at the same time the seven percent hotel and motel
  1 16 tax imposed pursuant to section 423A.4 is repealed or reduced
  1 17 in rate.
  1 18    Sec. 2.  Section 423A.7, Code 2007, is amended by adding
  1 19 the following new subsection:
  1 20    NEW SUBSECTION.  5.  In expending revenue derived from the
  1 21 local hotel and motel tax, a city or county shall comply, to
  1 22 the extent possible, with the Iowa targeted small business
  1 23 procurement Act pursuant to sections 73.15 through 73.21.
  1 24                           EXPLANATION
  1 25    This bill authorizes a city or county that has imposed,
  1 26 after favorable election, a local hotel and motel tax at the
  1 27 maximum rate of 7 percent to impose an additional 2 percent
  1 28 without holding an election.  This additional tax is repealed
  1 29 when the original 7 percent tax is repealed or reduced.
  1 30    The bill also directs the city or county when spending
  1 31 revenue derived from the local hotel and motel tax to comply
  1 32 with the Iowa targeted small business procurement Act.  A
  1 33 targeted small business is a business located in the state
  1 34 that is 51 percent owned, operated, and actively managed by
  1 35 women, minorities, or disabled persons and has annual gross
  2  1 income of less than $3 million computed as an average of the
  2  2 three previous years.
  2  3 LSB 2757HH 82
  2  4 mg:nh/cf/24