HSB 657 (LSB 6081YC (3) 84)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WAGNER)

A BILL FOR

An Act to legalize and validate the proceedings preliminary to and in connection with a special election held to authorize the imposition of a local option sales and services tax within the City of Adel, Iowa under Iowa Code Chapter 423B, declaring the validity of said proceedings and the legality of the local option sales and services tax authorized by the special election, and providing an effective date and for retroactive applicability.
   WHEREAS, according to Iowa Code chapter 423B, a local option sales and services tax election shall be submitted to the voters upon the filing of motion or motions of governing bodies of cities within the county or of the county representing at least one half of the population of the county, or upon the submission of a petition signed by eligible electors of the county equal in number to five percent of the persons in the whole county who voted in the last preceding state general election; and 
   WHEREAS, on April 26, 2010, the City Council of Adel passed Resolution No. 10-21 requesting a special election on the question of imposition of a local sales and services tax in the City of Adel; and 
   WHEREAS, upon receipt of said resolution, the Dallas County Commissioner of Elections prepared a ballot for, published notice of, and otherwise conducted a special election on August 3, 2010 upon the question of imposition of a local sales and services tax in the City of Adel, to be effective January 1, 2011, although the City of Adel does not in and of itself represent at least one half of the population of the county; and
   WHEREAS, at the election a majority of those voting approved of the imposition of the local option sales and services tax, and on August 10, 2010, the Dallas County Board of Supervisors duly canvassed the results of the special election and confirmed that 394 votes were cast in favor of the measure and 340 votes were cast against the measure; and
   WHEREAS, on August 31, 2010, the Dallas County Code of Ordinances, chapter 6A, was updated to reflect the imposition of a one percent (1%) local sales and services tax in the City of Adel, to be effective January 1, 2011, and thereafter forwarded to the Iowa Department of Revenue; and
   WHEREAS, the local option sales and services tax has been imposed and collected in the City of Adel since January 1, 2011, and the City now desires to issue bonds under Chapter 423B payable from the proceeds of the local option sales and services tax; and
   WHEREAS, the rights of citizens in other communities in Dallas County to seek imposition of a local option sales and services tax in addition to the City of Adel’s are not jeopardized by the legalization of the City of Adel’s election; and
   WHEREAS, doubts have arisen concerning the validity and legal sufficiency of the proceedings preliminary to the foregoing special election and the validity and legal sufficiency of such election and of the local option sales and services tax authorized by said election, and it is deemed advisable to put such doubts and all others that may arise concerning the same forever at rest; NOW THEREFORE,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  All acts and proceedings heretofore taken by the city council of the City of Adel and the board of supervisors and commissioner of elections of Dallas County preliminary to and in connection with the special election held in the City of Adel on August 3, 2010 on the imposition of a local option sales and services tax within the City of Adel, and the said special election and the local option sales and services tax approved by the voters at said special election, are hereby legalized, validated and confirmed, and the proceeds of such local option sales and services tax may be lawfully pledged by the City of the Adel to the payment of bonds as provided under the provisions of Iowa Code Chapter 423B.
    Sec. 2.  This Act, being deemed of immediate importance, takes effect upon enactment and is retroactively applicable to August 3, 2010.
EXPLANATION
   This bill relates to a resolution approved by the Adel city council to place a question on the ballot for the imposition of a local sales and services tax within the city. The city submitted the question to the Dallas county commissioner of elections who placed the question on the ballot. However, such question is required to be submitted to the registered voters of the incorporated and unincorporated areas of a county, and not only to the city adopting the resolution, and only if the city represents at least one half of the population of the county (Code section 423B.1(4)). The bill legalizes the acts and proceedings taken by the city council, the board of supervisors, and commissioner of elections of Dallas county, the election imposing the local option sales and services tax, and the local option sales and services tax approved by the city’s voters.