House File 95 - Introduced HOUSE FILE BY COMMITTEE ON REBUILD IOWA AND DISASTER RECOVERY (SUCCESSOR TO HSB 54) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the imposition of a local option sales tax 2 after a disaster and providing an effective date. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1746HV 83 5 tm/sc/5 PAG LIN 1 1 Section 1. A city or unincorporated area located in a 1 2 county in which the president of the United States declared a 1 3 disaster to exist at any time during 2008 may impose a local 1 4 option sales tax pursuant to chapter 423B using the procedure 1 5 provided in this section. A city or unincorporated area where 1 6 a local option sales tax is imposed pursuant to chapter 423B 1 7 on the effective date of this Act is prohibited from using 1 8 this section. The provisions of chapter 423B shall apply to 1 9 the imposition of a local option sales tax pursuant to this 1 10 section with the following exceptions: 1 11 1. Notwithstanding section 423B.1, subsection 3, 1 12 subsection 6, paragraph "a", and subsection 9, and section 1 13 423B.5, unnumbered paragraph 1, cities contiguous to each 1 14 other shall not be treated as part of one incorporated area 1 15 for purposes of the election on, imposition of, and repeal of 1 16 a local option sales and services tax. For purposes of this 1 17 Act, a local option sales and services tax shall be imposed in 1 18 a city only if a majority of the votes cast in the city on the 1 19 proposition favors the imposition of the tax, and a local 1 20 option sales and services tax shall be imposed in an 1 21 unincorporated area of a county only if a majority of the 1 22 votes cast in the unincorporated area on the proposition 1 23 favors the imposition of the tax. 1 24 2. a. For purposes of section 423B.1, subsection 4, a 1 25 motion by the governing body of a city or county requesting 1 26 that the question of imposition of a local sales and services 1 27 tax be submitted to the registered voters must be received by 1 28 the county commissioner of elections by 5:00 p.m. on February 1 29 3, 2009, or by 5:00 p.m. on March 10, 2009. If the fifty 1 30 percent threshold required in section 423B.1, subsection 4, 1 31 paragraph "b", is met in a county by the February 3, 2009, 1 32 deadline, then by February 8, 2009, or as soon as practicable, 1 33 the county commissioner of elections shall publish notice of 1 34 the ballot proposition concerning the imposition of the local 1 35 sales and services tax. If the fifty percent threshold 2 1 required in section 423B.1, subsection 4, paragraph "b", is 2 2 met in a county by the March 10, 2009, deadline, then by March 2 3 15, 2009, or as soon as practicable, the county commissioner 2 4 of elections shall publish notice of the ballot proposition 2 5 concerning the imposition of the local sales and services tax. 2 6 b. The petition method described in section 423B.1, 2 7 subsection 4, paragraph "a", for requesting the submission of 2 8 the question of the imposition of a local option sales and 2 9 services tax to the registered voters shall not apply under 2 10 this Act. 2 11 3. Notwithstanding section 423B.1, subsection 5, and 2 12 pursuant to section 39.2, subsection 4, the question of the 2 13 imposition of a local option sales and services tax shall be 2 14 submitted at an election held on March 3, 2009, if the 2 15 February 3, 2009, deadline provided in subsection 2 of this 2 16 section is met, and on May 5, 2009, if the March 10, 2009, 2 17 deadline provided in subsection 2 of this section is met. 2 18 4. Notwithstanding section 423B.1, subsection 5, and 2 19 section 423B.6, subsection 1, paragraph "a", the imposition 2 20 date for a local option sales and services tax approved at an 2 21 election held pursuant to this Act, on March 3, 2009, shall be 2 22 April 1, 2009, and the imposition date for a local option 2 23 sales and services tax approved at an election held pursuant 2 24 to this Act, on May 5, 2009, shall be July 1, 2009. 2 25 5. Notwithstanding section 423B.7, subsection 4, for a 2 26 local option sales and services tax imposed pursuant to this 2 27 Act, the three=year period referenced in section 423B.7, 2 28 subsection 4, shall be the three=year period beginning July 1, 2 29 2004, and ending June 30, 2007. This subsection shall not 2 30 apply to a city or the unincorporated area of a county that is 2 31 imposing a local option sales and services tax on the 2 32 effective date of this Act. 2 33 Sec. 2. EFFECTIVE DATE. This Act, being deemed of 2 34 immediate importance, takes effect upon enactment. 2 35 EXPLANATION 3 1 This bill allows a city or unincorporated area located in a 3 2 county in which the president of the United States declared a 3 3 disaster to exist at any time during 2008 to impose a local 3 4 option sales and services tax pursuant to Code chapter 423B 3 5 using an expedited procedure. A city or unincorporated area 3 6 where a local option sales and services tax is already imposed 3 7 pursuant to Code chapter 423B on the effective date of the 3 8 bill is prohibited from using the provisions in this bill. 3 9 The provisions of Code chapter 423B apply to the imposition of 3 10 a local option sales and services tax under the expedited 3 11 process with the following exceptions: 3 12 1. The bill provides that cities and counties contiguous 3 13 to each other shall not be treated as part of one incorporated 3 14 area for purposes of the election on, imposition of, and 3 15 repeal of a local option sales and services tax. The bill 3 16 provides that a local option sales and services tax shall be 3 17 imposed in a city only if a majority of the votes cast in the 3 18 city on the proposition favors the imposition of the tax, and 3 19 a local option sales and services tax shall be imposed in an 3 20 unincorporated area of a county only if a majority of the 3 21 votes cast in the unincorporated area on the proposition 3 22 favors the imposition of the tax. 3 23 2. The bill provides that a motion by the governing body 3 24 of a city or county requesting that the question of imposition 3 25 of a local option sales and services tax be submitted to the 3 26 registered voters must be received by the county commissioner 3 27 of elections by February 3, 2009, or by March 10, 2009. If 3 28 the 50 percent threshold required in Code section 423B.1, 3 29 subsection 4, paragraph "b", is met in a county by the 3 30 February 3, 2009, deadline, then by February 8, 2009, or as 3 31 soon as practicable, the county commissioner of elections 3 32 shall publish notice of the ballot proposition concerning the 3 33 imposition of the local option sales and services tax. If the 3 34 50 percent threshold required in Code section 423B.1, 3 35 subsection 4, paragraph "b", is met in a county by the March 4 1 10, 2009, deadline, then by March 15, 2009, or as soon as 4 2 practicable, the county commissioner of elections shall 4 3 publish notice of the ballot proposition concerning the 4 4 imposition of the local option sales and services tax. 4 5 3. The bill provides that the question of the imposition 4 6 of a local option sales and services tax shall be submitted at 4 7 an election held on March 3, 2009, if the February 3, 2009, 4 8 deadline is met, and on May 5, 2009, if the March 10, 2009, 4 9 deadline is met. 4 10 4. The bill provides that the imposition date for a local 4 11 option sales and services tax approved at an election held on 4 12 March 3, 2009, shall be April 1, 2009, and the imposition date 4 13 for a tax approved at an election held on May 5, 2009, shall 4 14 be July 1, 2009. 4 15 5. The bill, for purposes of a local option sales and 4 16 services tax imposed under the bill, amends a three=year 4 17 period used for purposes of distribution of tax receipts. The 4 18 amended three=year period does not apply to a city or the 4 19 unincorporated area of a county that is imposing a local 4 20 option sales and services tax on the effective date of this 4 21 Act. 4 22 The bill takes effect upon enactment. 4 23 LSB 1746HV 83 4 24 tm/sc/5