SF 2213 (LSB 5941SS (3) 85)

SENATE FILE 2213

BY  SODDERS

A BILL FOR

An Act authorizing counties to impose a local tourism tax following approval at election and establishing a local tourism tax fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.402, subsection 2, Code 2014, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0g.  Impose a local tourism tax in accordance with chapter 423A.
    Sec. 2.  Section 331.427, subsection 1, unnumbered paragraph 1, Code 2014, is amended to read as follows:

   Except as otherwise provided by state law, county revenues from taxes and other sources for general county services shall be credited to the general fund of the county, including revenues received under sections 9I.11, 101A.3, 101A.7, 123.36, 123.143, 142D.9, 176A.8, 321.105, 321.152, 321G.7, 321I.8, section 331.554, subsection 6, sections 341A.20, 364.3, 368.21, 423A.7, 423A.7A, 428A.8, 433.15, 434.19, 445.57, 453A.35, 458A.21, 483A.12, 533.329, 556B.1, 583.6, 602.8108, 904.908, and 906.17, and the following:
    Sec. 3.  Section 423A.3, Code 2014, is amended to read as follows:
   423A.3  State-imposed hotel and motel tax.

   A tax of five percent is imposed upon the sales price for the renting of any lodging if the renting occurs in this state. The tax shall be collected by any lessor of lodging from the user of that lodging. The lessor shall add the tax to the sales price of the lodging, and the state-imposed tax, when collected, shall be stated as a distinct item, separate and apart from the sales price of the lodging and the local tax imposed, if any, under section 423A.4 or section 423A.4A.
    Sec. 4.  NEW SECTION.  423A.4A  Local tourism tax —— election.
   1.  A county may impose by ordinance of the board of supervisors a local tourism tax, at a rate of one percent, which shall be imposed upon the sales price from the renting of lodging. The tax when imposed shall apply within the boundaries of the county.
   2.  The question of imposition or repeal of a local tourism tax may be submitted to the registered voters of the county at an election held on a date specified in section 39.2, subsection 4, paragraph “a”. Within ten days of the election at which a majority of those voting on the question favors the imposition or repeal of the local tourism tax, the county auditor shall give written notice by sending a copy of the abstract of votes from the favorable election to the director of revenue.
   3.  A local tourism tax shall be imposed on January 1 or July 1, following the notification of the director of revenue. Once imposed, the tax shall remain in effect for a minimum of one year. A local tourism tax shall terminate only on June 30 or December 31. At least forty-five days prior to the tax being effective or prior to the repeal of the tax, a county shall provide notice by mail of such action to the director of revenue. The director shall have the authority to waive the notice requirement.
   4.  A county shall impose or repeal a local tourism tax only after an election at which a majority of those voting on the question favors imposition or repeal. However, a local tourism tax shall not be repealed if obligations are outstanding which are payable as provided in section 423A.7A, unless funds sufficient to pay the principal, interest, and premium, if any, on the outstanding obligations at and prior to maturity have been properly set aside and pledged for that purpose. The election shall be held at the time of the general election or at a special election called for that purpose.
    Sec. 5.  Section 423A.5, subsection 2, unnumbered paragraph 1, Code 2014, is amended to read as follows:

   There is exempted from the provisions of this chapter and from the computation of any amount of tax imposed by section 423A.4 or section 423A.4A all of the following:
    Sec. 6.  Section 423A.6, Code 2014, is amended to read as follows:
   423A.6  Administration by director.
   1.  a.  The director of revenue shall administer the state and hotel and motel tax, the local hotel and motel tax, and the local tourism tax as nearly as possible in conjunction with the administration of the state sales tax law, except that portion of the law which implements the streamlined sales and use tax agreement. The director shall provide appropriate forms, or provide on the regular state tax forms, for reporting state and hotel and motel tax liability, local hotel and motel tax liability, and local tourism tax liability. All moneys received or refunded one hundred eighty days after the date on which a city or county terminates its local hotel and motel tax or a county terminates its local tourism tax, and all moneys received from the state hotel and motel tax shall be deposited in or withdrawn from the general fund of the state.
   b.  Beginning the first day of the calendar quarter beginning on the reinvestment district’s commencement date, the director of revenue shall, subject to remittance limitations established by the economic development authority board pursuant to section 15J.4, subsection 3, transfer from the general fund of the state to a district account created in the state reinvestment district fund for each reinvestment district established under chapter 15J, the new state hotel and motel tax revenue, determined in section 15J.5, subsection 2, paragraph “b”, in the district. Such transfers shall cease pursuant to section 15J.8.
   2.  The director, in consultation with local officials, shall collect and account for a local hotel and motel tax and shall credit all revenues to the local transient guest tax fund created in section 423A.7.  The director in consultation with local officials shall collect and account for a local tourism tax and shall credit all revenues to the local tourism tax fund created in section 423A.7A. Local authorities shall not require any tax permit not required by the director of revenue.
   3.  Section 422.25, subsection 4, sections 422.30, 422.67, and 422.68, section 422.69, subsection 1, sections 422.70, 422.71, 422.72, 422.74, and 422.75, section 423.14, subsection 1, and sections 423.23, 423.24, 423.25, 423.31, 423.33, 423.35, 423.37 through 423.42, and 423.47, consistent with the provisions of this chapter, apply with respect to the taxes authorized under this chapter, in the same manner and with the same effect as if the state and local hotel and motel taxes and the local tourism tax were retail sales taxes within the meaning of those statutes. Notwithstanding this subsection, the director shall provide for quarterly filing of returns and for other than quarterly filing of returns both as prescribed in section 423.31. The director may require all persons who are engaged in the business of deriving any sales price subject to tax under this chapter to register with the department. All taxes collected under this chapter by a retailer or any individual are deemed to be held in trust for the state of Iowa and the local jurisdictions imposing the taxes.
    Sec. 7.  NEW SECTION.  423A.7A  Local tourism tax fund.
   1.  A local tourism tax fund is created in the department which shall consist of all moneys credited to such fund under section 423A.6.
   2.  All moneys in the local tourism tax fund shall be remitted at least quarterly by the department, pursuant to rules of the director of revenue, to each county in the amount collected from businesses in the county.
   3.  Moneys received by the county from this fund shall be credited to the general fund of the county, subject to the provisions of subsection 4.
   4.  The revenue derived from any local tourism tax authorized by section 423A.4A shall be used for the acquisition by the county of sites for, or constructing, improving, enlarging, equipping, repairing, operating, or maintaining of, recreation, convention, cultural, or entertainment facilities including but not limited to memorial buildings, halls and monuments, civic center convention buildings, auditoriums, coliseums, and parking areas or facilities located at those recreation, convention, cultural, or entertainment facilities. In addition, the revenue derived from a local tourism tax may be used by the county to pay principal and interest on bonds issued by the county for purposes of section 423A.7, subsection 4, paragraph “a”, or for the promotion and encouragement of tourism and convention business in the county.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill authorizes a county to impose by ordinance a local tourism tax at a rate of 1 percent upon the sales price from the renting of lodging. If imposed, a local tourism tax applies within the boundaries of the county. Under the bill, a county shall impose or repeal a local tourism tax only after an election at which a majority of those voting on the question favors imposition or repeal.
   The bill requires the director of revenue to administer the local tourism tax as nearly as possible in conjunction with the administration of the state sales tax law. The bill also requires the director of revenue to collect and account for the local tourism tax and to credit all revenues to the local tourism tax fund created in the bill. All moneys in the local tourism tax fund must be remitted at least quarterly by the department of revenue to each county in the amount collected from businesses in the county.
   The revenue derived from any local tourism tax authorized in the bill shall be used for the acquisition of sites for, or constructing, improving, enlarging, equipping, repairing, operating, or maintaining of, recreation, convention, cultural, or entertainment facilities and parking areas or facilities located at those recreation, convention, cultural, or entertainment facilities. In addition, the revenue derived from a local tourism tax may be used by the county in conjunction with the county’s expenditure of local hotel and motel tax revenue for county purposes specified in Code section 423A.7(4)(a).