Senate Study Bill 1190 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act relating to local government funding by authorizing 1 cities and counties to impose a local public safety 2 fee on the rental of certain lodging, authorizing the 3 establishment of public safety districts, modifying certain 4 city and township property tax levy rates, and including 5 applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 2345SC (3) 84 md/sc
S.F. _____ Section 1. Section 359.43, subsection 1, Code 2011, is 1 amended to read as follows: 2 1. The township trustees may shall levy an annual tax 3 of not exceeding less than forty and one-half cents per 4 thousand dollars of assessed value of the taxable property 5 in the township and not exceeding eighty cents per thousand 6 dollars of assessed value of taxable property in the township , 7 excluding property within a benefited fire district or within 8 the corporate limits of a city, for the purpose of exercising 9 the powers and duties specified in section 359.42 . However, 10 in a township having a fire protection service or emergency 11 medical service agreement or both service agreements with 12 a special charter city having a paid fire department, the 13 township trustees may levy an annual tax not exceeding 14 fifty-four cents per thousand dollars of the assessed value of 15 the taxable property for the services authorized or required 16 under section 359.42 and in a township which is located within 17 a county having a population of three hundred thousand or more, 18 the township trustees may levy an annual tax not exceeding 19 sixty-seven and one-half cents per thousand dollars of assessed 20 value of taxable property for the services authorized or 21 required under section 359.42 . 22 Sec. 2. Section 384.1, Code 2011, is amended to read as 23 follows: 24 384.1 Taxes certified. 25 A city may certify taxes to be levied by the county on 26 all taxable property within the city limits, for all city 27 government purposes. However, the tax levied by a city on 28 tracts of land and improvements thereon used and assessed 29 for agricultural or horticultural purposes, shall not exceed 30 three dollars and three-eighths cents per thousand dollars 31 of assessed value in any year. Improvements located on such 32 tracts of land and not used for agricultural or horticultural 33 purposes and all residential dwellings are subject to the same 34 rate of tax levied by the city on all other taxable property 35 -1- LSB 2345SC (3) 84 md/sc 1/ 7
S.F. _____ within the city. A city’s tax levy for the general fund shall 1 not exceed eight dollars and ten cents per thousand dollars of 2 taxable value in any tax year, except for the levies authorized 3 in section 384.12 . However, if a city is imposing a public 4 safety charge under section 384.84, subsection 7A, the city’s 5 tax levy for the general fund shall not exceed six dollars and 6 seventy cents per thousand dollars of taxable value in any tax 7 year, except for the levies authorized in section 384.12. 8 Sec. 3. Section 384.84, subsection 4, paragraph a, 9 subparagraph (1), Code 2011, is amended to read as follows: 10 (1) Except as provided in paragraph “d” , all rates or 11 charges for the services of sewer systems, storm water drainage 12 systems, sewage treatment, solid waste collection, water, 13 solid waste disposal, public safety services, or any of these 14 services, if not paid as provided by ordinance of the council 15 or resolution of the trustees, are a lien upon the property or 16 premises served by any of these services upon certification to 17 the county treasurer that the rates or charges are due. 18 Sec. 4. Section 384.84, Code 2011, is amended by adding the 19 following new subsection: 20 NEW SUBSECTION . 7A. a. A governing body may declare 21 all or a certain portion of the improved properties located 22 within that city as a public safety district for the purpose 23 of establishing, imposing, adjusting, and providing for the 24 collection of the public safety charge as provided in this 25 section. The ordinance provisions for collection of a public 26 safety charge may prescribe a formula for determination of the 27 charge which may include criteria and standards that allocate 28 the city’s aggregate public safety expenditures to the improved 29 properties within the district, including properties totally or 30 partially exempt from taxation under chapter 404, chapter 404B, 31 section 427.1, or section 427B.1. A public safety charge shall 32 become effective for the fiscal year beginning July 1 following 33 adoption of the ordinance. 34 b. For the purposes of imposing and collecting a public 35 -2- LSB 2345SC (3) 84 md/sc 2/ 7
S.F. _____ safety charge under this subsection, the property in the 1 district shall, pursuant to section 427.1, subsection 18, be 2 valued and assessed in accordance with chapter 441. Such 3 property owners shall be entitled to protest any assessment and 4 take appeals in the same manner as any taxpayer. 5 c. All amounts collected from a public safety charge under 6 this subsection shall be expended exclusively for the city’s 7 budgeted public safety expenditures for police, fire, and 8 emergency medical services. 9 d. A city imposing a public safety charge under this 10 subsection shall not impose a public safety fee under section 11 423A.4A. 12 e. Each city imposing a public safety charge shall provide 13 a copy of the ordinance to the city finance committee and shall 14 continue to provide information requested by the city finance 15 committee that is necessary to evaluate the effectiveness of 16 the public safety charge authorized in this subsection. 17 f. Public safety charges imposed pursuant to this 18 subsection, if not paid as provided in the ordinance, are a 19 lien upon the property or premises that is provided public 20 safety services by the city upon certification to the county 21 treasurer that such charges are due. 22 Sec. 5. NEW SECTION . 423A.4A Local public safety fee. 23 1. A city may impose by ordinance of the city council a 24 public safety fee at a rate not to exceed one dollar and fifty 25 cents per night of lodging rental. The fee shall apply only 26 within the corporate boundaries of that city. 27 2. The fee shall be collected by the lessor of lodging from 28 the user of that lodging. The lessor shall add the fee to the 29 sales price of the lodging, and the fee shall be stated as a 30 distinct item, separate and apart from the sales price of the 31 lodging and taxes imposed, if any, under section 423A.3 or 32 423A.4. 33 3. Public safety fees collected by a lessor shall be due and 34 payable to the city according to a schedule specified in the 35 -3- LSB 2345SC (3) 84 md/sc 3/ 7
S.F. _____ ordinance. A lessor is liable for the payment of fees to the 1 city in the same manner as liability is imposed on retailers 2 for the payment of taxes under sections 421.26 and 421.28. 3 4. Fees received by a city under this section shall be 4 deposited in a public safety fee account within the city’s 5 general fund. All fees collected under this section are deemed 6 to be held in trust for the applicable city that is imposing 7 the fee. 8 5. a. Moneys in the public safety fee account within the 9 city general fund shall be used for that city’s costs related 10 to public safety services including police, fire, and emergency 11 medical services within the applicable city. 12 b. A city imposing a public safety fee under this section 13 shall not establish a public safety district under section 14 384.84, subsection 7A. 15 6. An ordinance imposing a fee under this section shall 16 designate an applicable city officer to receive payments 17 from lessors and to prescribe any forms necessary for the 18 collection, reporting, and payment of such fees. 19 Sec. 6. Section 423A.5, Code 2011, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 3. All of the following are exempt from any 22 fee imposed under section 423A.4A: 23 a. The renting of lodging which is rented by the same person 24 for a period of more than thirty-one consecutive days. 25 b. The renting of sleeping rooms in dormitories and in the 26 memorial unions at all universities and colleges located in the 27 state of Iowa. 28 c. The lodging furnished to the guests of a religious 29 institution if the property is exempt under section 427.1, 30 subsection 8, and the purpose of renting is to provide a 31 place for a religious retreat or function and not a place for 32 transient guests generally. 33 Sec. 7. APPLICABILITY. The section of this Act amending 34 section 259.43 applies to property taxes due and payable in the 35 -4- LSB 2345SC (3) 84 md/sc 4/ 7
S.F. _____ fiscal year beginning July 1, 2012. 1 EXPLANATION 2 This bill relates to local government funding. 3 Current law allows townships to levy an amount not exceeding 4 40 1/2 cents per $1,000 of assessed value of the taxable 5 property in the township for fire protection service and, if 6 the township chooses to provide emergency medical service, for 7 emergency medical services. In townships that contract with a 8 special charter city to provide these services, the levy limit 9 is 54 cents per $1,000 of assessed value. In townships located 10 in a county with a population of 300,000 or more, the levy 11 limit is 67 1/2 cents per $1,000 of assessed value. 12 This bill requires all townships to impose a levy of not 13 less than 40 1/2 cents and not exceeding 80 cents per $1,000 14 of assessed value of the taxable property in the township, 15 excluding property within a benefited fire district or within 16 the corporate limits of a city, for fire protection service 17 and, if the township chooses to so provide, for emergency 18 medical service. 19 The bill enacts new Code section 384.84(7A) authorizing 20 cities to declare all or a certain portion of the improved 21 properties located within that city as a public safety district 22 for the purpose of establishing, imposing, adjusting, and 23 providing for the collection of a public safety charge. Under 24 the bill, the ordinance providing for collection of the public 25 safety charge may prescribe a formula for determination of 26 the charge. The bill allows the public safety charge to be 27 imposed on property that is otherwise exempt from property 28 taxes. The bill specifies that a public safety charge shall 29 become effective for the fiscal year beginning July 1 following 30 adoption of the ordinance. 31 The bill includes provisions for the valuation and 32 assessment of certain property located within a public safety 33 district, provisions designating the use of amounts collected 34 from a public safety charge, and provisions relating to 35 -5- LSB 2345SC (3) 84 md/sc 5/ 7
S.F. _____ reviewing the effectiveness of a public safety charge. The 1 bill provides that public safety charges, if not paid as 2 provided in the city ordinance, are a lien upon the property 3 or premises. The bill provides that a city imposing a public 4 safety charge shall not impose a public safety fee, as provided 5 for in the bill under new Code section 423A.4A. 6 Currently, a city’s tax levy for the general fund shall 7 not exceed $8.10 per $1,000 of taxable value in any tax year, 8 except for specified supplemental levies authorized in Code 9 section 384.12. The bill provides that if a city is imposing 10 a public safety charge under new Code section 384.84(7A), the 11 city’s tax levy for the general fund shall not exceed $6.70 12 per $1,000 of taxable value in any tax year, except for the 13 supplemental levies. 14 The bill authorizes cities to impose by ordinance of the city 15 council a lodging public safety fee at a rate not to exceed 16 $1.50 per night of lodging rental. The fee applies only within 17 the corporate boundaries of that city. 18 The bill requires such fees to be collected by the lessor 19 of lodging from the user of the lodging. The fee is added to 20 the sales price of the lodging, and the fee must be stated as 21 a distinct item, separate from the sales price of the lodging 22 and other hotel and motel taxes imposed on the rental. The 23 fees collected by a lessor are paid to the city according to a 24 schedule specified by the city. The bill imposes liability on 25 a lessor for the payment of fees to the city in the same manner 26 as liability is imposed on retailers for the payment of certain 27 taxes. 28 The bill requires all public safety fees received by a city 29 to be deposited in a public safety fee account within the 30 city’s general fund. Moneys in the public safety fee account 31 must be used for that city’s costs related to public safety 32 services including fire, police, and emergency medical services 33 within the applicable city. 34 The bill prohibits a city that is imposing a public safety 35 -6- LSB 2345SC (3) 84 md/sc 6/ 7
S.F. _____ fee from establishing a public safety district under new Code 1 section 384.84(7A). 2 The bill exempts certain lodging rentals from the public 3 safety fee. The exemptions in the bill are similar to the 4 exemptions currently applicable to state and local hotel and 5 motel taxes under Code chapter 423A. 6 The section of the bill amending Code section 359.43 applies 7 to property taxes due and payable in the fiscal year beginning 8 July 1, 2012. 9 -7- LSB 2345SC (3) 84 md/sc 7/ 7