Senate
File
2331
-
Introduced
SENATE
FILE
2331
BY
SCHNEIDER
,
CHAPMAN
,
and
McCOY
A
BILL
FOR
An
Act
relating
to
the
approval,
imposition,
and
distribution
1
of
local
option
taxes.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
423B.1,
subsection
1,
Code
2014,
is
1
amended
to
read
as
follows:
2
1.
A
city
or
county
may
impose
by
ordinance
of
the
board
3
of
supervisors
local
option
taxes
authorized
by
this
chapter
,
4
subject
to
this
section
and
subject
to
the
exception
provided
5
in
subsection
2
.
6
Sec.
2.
Section
423B.1,
subsection
2,
Code
2014,
is
amended
7
by
striking
the
subsection.
8
Sec.
3.
Section
423B.1,
subsection
3,
Code
2014,
is
amended
9
to
read
as
follows:
10
3.
A
local
option
tax
shall
be
imposed
only
after
an
11
election
at
which
a
majority
of
those
voting
on
the
question
12
favors
imposition
and
shall
then
be
imposed
until
repealed
13
as
provided
in
subsection
6
,
paragraph
“a”
.
If
the
tax
is
14
a
local
vehicle
tax
imposed
by
a
county,
it
shall
apply
to
15
all
incorporated
and
unincorporated
areas
of
the
county.
16
If
the
tax
is
a
local
sales
and
services
tax
imposed
by
a
17
county,
it
shall
only
apply
to
those
incorporated
areas
and
18
the
unincorporated
area
of
that
county
in
which
if
a
majority
19
of
those
voting
in
the
unincorporated
area
on
the
tax
favors
20
its
imposition
,
and
if
the
tax
is
a
local
sales
and
services
21
tax
imposed
by
a
city,
it
shall
only
apply
to
the
city
if
a
22
majority
of
those
voting
in
the
city
on
the
tax
favors
its
23
imposition
.
For
purposes
of
the
local
sales
and
services
tax,
24
all
cities
contiguous
to
each
other
shall
be
treated
as
part
of
25
one
incorporated
area
and
the
tax
would
be
imposed
in
each
of
26
those
contiguous
cities
only
if
the
majority
of
those
voting
27
in
the
total
area
covered
by
the
contiguous
cities
favors
its
28
imposition.
In
the
case
of
a
local
sales
and
services
tax
29
submitted
to
the
registered
voters
of
two
or
more
contiguous
30
counties
as
provided
in
subsection
4
,
paragraph
“c”
,
all
cities
31
contiguous
to
each
other
shall
be
treated
as
part
of
one
32
incorporated
area,
even
if
the
corporate
boundaries
of
one
or
33
more
of
the
cities
include
areas
of
more
than
one
county,
and
34
the
tax
shall
be
imposed
in
each
of
those
contiguous
cities
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only
if
a
majority
of
those
voting
on
the
tax
in
the
total
area
1
covered
by
the
contiguous
cities
favored
its
imposition.
For
2
purposes
of
the
local
sales
and
services
tax,
a
city
is
not
3
contiguous
to
another
city
if
the
only
road
access
between
the
4
two
cities
is
through
another
state.
5
Sec.
4.
Section
423B.1,
subsection
4,
paragraphs
a
and
b,
6
Code
2014,
are
amended
to
read
as
follows:
7
a.
A
county
board
of
supervisors
shall
direct
within
8
thirty
days
the
county
commissioner
of
elections
to
submit
the
9
question
of
imposition
of
a
local
vehicle
tax
or
a
local
sales
10
and
services
tax
to
the
registered
voters
of
the
incorporated
11
and
unincorporated
areas
of
the
county
upon
receipt
by
the
12
board
of
supervisors
of
a
petition,
requesting
imposition
of
a
13
local
vehicle
tax
or
a
local
sales
and
services
tax
,
signed
by
14
eligible
electors
of
the
whole
county
equal
in
number
to
five
15
percent
of
the
persons
in
the
whole
county
who
voted
at
the
16
last
preceding
general
election.
A
county
board
of
supervisors
17
shall
direct
within
thirty
days
the
county
commissioner
of
18
elections
to
submit
the
question
of
imposition
of
a
local
19
sales
and
services
tax
to
the
registered
voters
of
a
city
or
20
of
the
unincorporated
area
of
the
county
upon
receipt
by
the
21
board
of
supervisors
of
a
petition,
requesting
imposition
of
22
a
local
sales
and
services
tax,
signed
by
eligible
electors
23
of
the
city
or
of
the
unincorporated
area
of
the
county,
as
24
applicable,
equal
in
number
to
five
percent
of
the
persons
in
25
the
applicable
city
or
unincorporated
area
of
the
county
who
26
voted
at
the
last
preceding
general
election.
In
the
case
of
27
a
local
vehicle
tax,
the
petition
requesting
imposition
shall
28
specify
the
rate
of
tax
and
the
classes,
if
any,
that
are
to
29
be
exempt.
If
more
than
one
valid
petition
is
received,
the
30
earliest
received
petition
shall
be
used.
31
b.
The
question
of
the
imposition
of
a
local
sales
and
32
services
tax
shall
be
submitted
to
the
registered
voters
of
the
33
incorporated
and
city
or
of
the
unincorporated
areas
area
of
34
the
county
upon
receipt
by
the
county
commissioner
of
elections
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of
the
a
motion
or
motions
,
requesting
such
submission,
adopted
1
by
the
governing
body
or
bodies
of
the
a
city
or
cities
located
2
within
the
county
or
of
the
county
,
for
the
unincorporated
3
areas
area
of
the
county
,
representing
at
least
one
half
of
the
4
population
of
the
county
.
Upon
adoption
of
such
motion,
the
5
governing
body
of
the
city
or
county
,
for
the
unincorporated
6
areas,
area
shall
submit
the
motion
to
the
county
commissioner
7
of
elections
and
in
the
case
of
the
governing
body
of
the
city
8
shall
notify
the
board
of
supervisors
of
the
adoption
of
the
9
motion
.
The
county
commissioner
of
elections
shall
keep
a
file
10
on
all
the
motions
received
and,
upon
reaching
the
population
11
requirements,
shall
publish
notice
of
the
ballot
proposition
12
concerning
the
imposition
of
the
local
sales
and
services
tax.
13
A
motion
ceases
to
be
valid
at
the
time
of
the
holding
of
the
14
regular
election
for
the
election
of
members
of
the
governing
15
body
which
adopted
the
motion.
The
county
commissioner
of
16
elections
shall
eliminate
from
the
file
any
motion
that
ceases
17
to
be
valid.
The
manner
provided
under
this
paragraph
for
18
the
submission
of
the
question
of
imposition
of
a
local
sales
19
and
services
tax
is
an
alternative
to
the
manner
provided
in
20
paragraph
“a”
.
21
Sec.
5.
Section
423B.1,
subsection
4,
paragraph
c,
Code
22
2014,
is
amended
by
striking
the
paragraph
and
inserting
in
23
lieu
thereof
the
following:
24
c.
A
city
is
considered
to
be
located
in
a
county
if
over
25
half
of
the
population
of
the
city
is
located
in
that
county.
26
Sec.
6.
Section
423B.1,
subsection
5,
Code
2014,
is
amended
27
to
read
as
follows:
28
5.
The
county
commissioner
of
elections
shall
submit
the
29
question
of
imposition
of
a
local
option
tax
at
an
election
30
held
on
a
date
specified
in
section
39.2,
subsection
4
,
31
paragraph
“a”
or
“b”
,
as
applicable
.
The
election
shall
not
32
be
held
sooner
than
sixty
days
after
publication
of
notice
of
33
the
ballot
proposition.
The
ballot
proposition
shall
specify
34
the
type
and
rate
of
tax
and
,
in
the
case
of
a
vehicle
tax
,
the
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classes
that
will
be
exempt
and
,
in
the
case
of
a
local
sales
1
and
services
tax
,
the
date
it
will
be
imposed
which
date
shall
2
not
be
earlier
than
ninety
days
following
the
election.
The
3
ballot
proposition
shall
also
specify
the
approximate
amount
4
of
local
option
tax
revenues
that
will
be
used
for
property
5
tax
relief
and
shall
contain
a
statement
as
to
the
specific
6
purpose
or
purposes
for
which
the
revenues
shall
otherwise
7
be
expended.
If
the
county
board
of
supervisors
or
city
8
council,
as
applicable,
decides
under
subsection
6
to
specify
9
a
date
on
which
the
local
option
sales
and
services
tax
shall
10
automatically
be
repealed,
the
date
of
the
repeal
shall
also
be
11
specified
on
the
ballot.
The
rate
of
the
vehicle
tax
shall
be
12
in
increments
of
one
dollar
per
vehicle
as
set
by
the
petition
13
seeking
to
impose
the
tax.
The
rate
of
a
local
sales
and
14
services
tax
shall
not
be
more
than
one
percent
as
set
by
the
15
governing
body
.
The
state
commissioner
of
elections
shall
16
establish
by
rule
the
form
for
the
ballot
proposition
which
17
form
shall
be
uniform
throughout
the
state.
18
Sec.
7.
Section
423B.1,
subsection
6,
paragraph
a,
Code
19
2014,
is
amended
to
read
as
follows:
20
a.
(1)
If
a
majority
of
those
voting
on
the
question
21
of
imposition
of
a
local
option
tax
favors
imposition
of
a
22
local
option
tax,
the
governing
body
of
that
county
shall
23
impose
the
tax
at
the
rate
specified
for
an
unlimited
period.
24
However,
in
the
case
of
a
local
sales
and
services
tax,
the
25
county
shall
not
impose
the
tax
in
any
incorporated
area
or
26
the
unincorporated
area
if
the
majority
of
those
voting
on
the
27
tax
in
that
area
did
not
favor
its
imposition.
For
purposes
28
of
the
local
sales
and
services
tax,
all
cities
contiguous
to
29
each
other
shall
be
treated
as
part
of
one
incorporated
area
30
and
the
tax
shall
be
imposed
in
each
of
those
contiguous
cities
31
only
if
the
majority
of
those
voting
on
the
tax
in
the
total
32
area
covered
by
the
contiguous
cities
favored
its
imposition.
33
In
the
case
of
a
local
sales
and
services
tax
submitted
to
34
the
registered
voters
of
two
or
more
contiguous
counties
as
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provided
in
subsection
4
,
paragraph
“c”
,
all
cities
contiguous
1
to
each
other
shall
be
treated
as
part
of
one
incorporated
2
area,
even
if
the
corporate
boundaries
of
one
or
more
of
the
3
cities
include
areas
of
more
than
one
county,
and
the
tax
4
shall
be
imposed
in
each
of
those
contiguous
cities
only
if
a
5
majority
of
those
voting
on
the
tax
in
the
total
area
covered
6
by
the
contiguous
cities
favored
its
imposition.
If
a
majority
7
of
those
voting
on
the
question
of
imposition
of
a
local
8
option
sales
and
services
tax
favors
imposition
of
the
tax,
9
the
governing
body
of
the
city
or
county,
as
applicable,
shall
10
impose
by
ordinance
the
tax
at
the
rate
of
one
percent.
11
(2)
The
local
option
tax
may
be
repealed
or
the
rate
of
the
12
local
vehicle
tax
increased
or
decreased
or
the
use
thereof
13
of
a
local
option
tax
changed
after
an
election
at
which
a
14
majority
of
those
voting
on
the
question
of
repeal
or
rate
or
15
use
change
favored
the
repeal
or
rate
or
use
change.
The
date
16
on
which
the
repeal,
rate,
or
use
change
is
to
take
effect
17
shall
not
be
earlier
than
ninety
days
following
the
election.
18
The
election
at
which
the
question
of
repeal
or
rate
or
use
19
change
is
offered
shall
be
called
and
held
in
the
same
manner
20
and
under
the
same
conditions
as
provided
in
subsections
4
21
and
5
for
the
election
on
the
imposition
of
the
local
option
22
tax.
However,
in
the
case
of
a
local
sales
and
services
tax
23
where
the
tax
has
not
been
imposed
countywide,
the
question
24
of
repeal
or
imposition
or
rate
or
use
change
shall
be
voted
25
on
only
by
the
registered
voters
of
the
areas
of
the
county
26
where
the
tax
has
been
imposed
or
has
not
been
imposed,
as
27
appropriate.
However,
the
governing
body
of
the
incorporated
28
area
city
or
unincorporated
area
where
the
local
sales
and
29
services
tax
is
imposed
may,
upon
its
own
motion,
request
the
30
county
commissioner
of
elections
to
hold
an
election
in
the
31
incorporated
city
or
unincorporated
area,
as
appropriate,
on
32
the
question
of
the
change
in
use
of
local
sales
and
services
33
tax
revenues.
The
election
may
be
held
at
any
time
but
not
34
sooner
than
sixty
days
following
publication
of
the
ballot
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proposition.
If
a
majority
of
those
voting
in
the
incorporated
1
city
or
unincorporated
area
on
the
change
in
use
favors
the
2
change,
the
governing
body
of
that
city
or
area
shall
change
3
the
use
to
which
the
revenues
shall
be
used.
The
ballot
4
proposition
shall
list
the
present
use
of
the
revenues,
the
5
proposed
use,
and
the
date
after
which
revenues
received
will
6
be
used
for
the
new
use.
7
(3)
When
submitting
the
question
of
the
imposition
of
a
8
local
sales
and
services
tax,
the
county
board
of
supervisors
9
or
the
governing
body
of
the
city
may
direct
that
the
question
10
contain
a
provision
for
the
repeal,
without
election,
of
the
11
local
sales
and
services
tax
on
a
specific
date,
which
date
12
shall
be
as
provided
in
section
423B.6,
subsection
1
.
13
Sec.
8.
Section
423B.1,
Code
2014,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
6A.
If
a
proposition
for
the
imposition
16
of
a
local
sales
and
services
tax
submitted
to
the
voters
17
of
a
city
or
unincorporated
area
of
a
county
under
this
18
section
fails
to
gain
approval,
the
proposition
shall
not
be
19
resubmitted
to
the
voters
of
that
jurisdiction
in
substantially
20
the
same
form
for
a
period
of
three
years
following
the
date
21
of
the
election
and
may
only
be
resubmitted
to
the
voters
on
a
22
date
specified
in
section
39.2,
subsection
4,
paragraph
“a”
or
23
“b”
,
as
applicable.
24
Sec.
9.
Section
423B.1,
subsection
7,
paragraph
b,
Code
25
2014,
is
amended
to
read
as
follows:
26
b.
Costs
of
local
option
tax
elections
shall
be
apportioned
27
among
jurisdictions
within
the
county
voting
on
the
question
28
at
the
same
election
on
a
pro
rata
basis
in
proportion
to
the
29
number
of
registered
voters
in
each
taxing
jurisdiction
voting
30
on
the
question
and
the
total
number
of
registered
voters
in
31
all
of
the
taxing
jurisdictions
voting
on
the
question
.
32
Sec.
10.
Section
423B.1,
subsections
8,
9,
and
10,
Code
33
2014,
are
amended
to
read
as
follows:
34
8.
Local
option
taxes
authorized
to
be
imposed
as
provided
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in
this
chapter
are
a
local
sales
and
services
tax
and
a
local
1
vehicle
tax.
The
rate
of
the
tax
shall
be
in
increments
of
one
2
dollar
per
vehicle
for
a
vehicle
tax
as
set
on
the
petition
3
seeking
to
impose
the
vehicle
tax.
The
rate
of
a
local
sales
4
and
services
tax
shall
not
be
more
than
one
percent
as
set
by
5
the
governing
body
.
6
9.
a.
In
a
county
that
has
imposed
a
local
option
sales
7
and
services
tax
in
the
unincorporated
area
of
the
county
,
8
the
board
of
supervisors
shall,
notwithstanding
any
contrary
9
provision
of
this
chapter
,
repeal
the
local
option
sales
and
10
services
tax
in
the
unincorporated
areas
or
in
an
incorporated
11
city
area
in
which
the
tax
has
been
imposed
area
upon
adoption
12
of
its
own
motion
for
repeal
in
the
unincorporated
areas
or
13
upon
receipt
of
a
motion
adopted
by
the
governing
body
of
14
that
incorporated
city
area
requesting
repeal
.
The
board
of
15
supervisors
shall
repeal
the
local
option
sales
and
services
16
tax
effective
on
the
later
of
the
date
of
the
adoption
of
the
17
repeal
motion
or
the
earliest
date
specified
in
section
423B.6,
18
subsection
1
.
For
purposes
of
this
subsection
,
incorporated
19
city
area
includes
an
incorporated
city
which
is
contiguous
to
20
another
incorporated
city.
21
b.
In
a
city
that
has
imposed
a
local
sales
and
services
22
tax,
the
governing
body
of
the
city
shall,
notwithstanding
any
23
contrary
provision
of
this
chapter,
repeal
the
local
sales
24
and
services
tax
in
the
city
upon
adoption
of
its
own
motion
25
for
repeal.
The
governing
body
of
the
city
shall
repeal
the
26
local
sales
and
services
tax
effective
on
the
later
of
the
27
date
of
the
adoption
of
the
repeal
motion
or
the
earliest
date
28
specified
in
section
423B.6,
subsection
1.
29
10.
Notwithstanding
subsection
9
or
any
other
contrary
30
provision
of
this
chapter
,
a
local
option
sales
and
services
31
tax
shall
not
be
repealed
or
reduced
in
rate
if
obligations
are
32
outstanding
which
are
payable
as
provided
in
section
423B.9
,
33
unless
funds
sufficient
to
pay
the
principal,
interest,
and
34
premium,
if
any,
on
the
outstanding
obligations
at
and
prior
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to
maturity
have
been
properly
set
aside
and
pledged
for
that
1
purpose.
2
Sec.
11.
Section
423B.5,
unnumbered
paragraph
1,
Code
2014,
3
is
amended
to
read
as
follows:
4
A
local
sales
and
services
tax
at
the
rate
of
not
more
than
5
one
percent
may
be
imposed
by
a
city
or
county
on
the
sales
6
price
taxed
by
the
state
under
chapter
423,
subchapter
II
.
A
7
local
sales
and
services
tax
shall
be
imposed
on
the
same
basis
8
as
the
state
sales
and
services
tax
or
in
the
case
of
the
use
9
of
natural
gas,
natural
gas
service,
electricity,
or
electric
10
service
on
the
same
basis
as
the
state
use
tax
and
shall
not
11
be
imposed
on
the
sale
of
any
property
or
on
any
service
not
12
taxed
by
the
state,
except
the
tax
shall
not
be
imposed
on
13
the
sales
price
from
the
sale
of
motor
fuel
or
special
fuel
14
as
defined
in
chapter
452A
which
is
consumed
for
highway
use
15
or
in
watercraft
or
aircraft
if
the
fuel
tax
is
paid
on
the
16
transaction
and
a
refund
has
not
or
will
not
be
allowed,
on
the
17
sales
price
from
the
sale
of
equipment
by
the
state
department
18
of
transportation,
or
on
the
sales
price
from
the
sale
or
use
19
of
natural
gas,
natural
gas
service,
electricity,
or
electric
20
service
in
a
city
or
county
where
the
sales
price
from
the
sale
21
of
natural
gas
or
electric
energy
is
subject
to
a
franchise
22
fee
or
user
fee
during
the
period
the
franchise
or
user
fee
23
is
imposed.
A
local
sales
and
services
tax
is
applicable
24
to
transactions
within
those
incorporated
and
the
city
or
25
unincorporated
areas
area
of
the
county
where
it
is
imposed
and
26
shall
be
collected
by
all
persons
required
to
collect
state
27
sales
taxes.
All
cities
contiguous
to
each
other
shall
be
28
treated
as
part
of
one
incorporated
area
and
the
tax
would
be
29
imposed
in
each
of
those
contiguous
cities
only
if
the
majority
30
of
those
voting
in
the
total
area
covered
by
the
contiguous
31
cities
favors
its
imposition.
In
the
case
of
a
local
sales
and
32
services
tax
submitted
to
the
registered
voters
of
two
or
more
33
contiguous
counties
as
provided
in
section
423B.1,
subsection
34
4
,
paragraph
“c”
,
all
cities
contiguous
to
each
other
shall
be
35
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treated
as
part
of
one
incorporated
area,
even
if
the
corporate
1
boundaries
of
one
or
more
of
the
cities
include
areas
of
more
2
than
one
county,
and
the
tax
shall
be
imposed
in
each
of
those
3
contiguous
cities
only
if
a
majority
of
those
voting
on
the
tax
4
in
the
total
area
covered
by
the
contiguous
cities
favored
its
5
imposition.
6
Sec.
12.
Section
423B.5,
unnumbered
paragraph
4,
Code
2014,
7
is
amended
to
read
as
follows:
8
If
a
local
sales
and
services
tax
is
imposed
by
a
city
or
9
county
pursuant
to
this
chapter
,
a
local
excise
tax
at
the
same
10
rate
shall
be
imposed
by
the
city
or
county
on
the
purchase
11
price
of
natural
gas,
natural
gas
service,
electricity,
or
12
electric
service
subject
to
tax
under
chapter
423,
subchapter
13
III
,
and
not
exempted
from
tax
by
any
provision
of
chapter
423,
14
subchapter
III
.
The
local
excise
tax
is
applicable
only
to
15
the
use
of
natural
gas,
natural
gas
service,
electricity,
or
16
electric
service
within
those
incorporated
and
unincorporated
17
areas
of
the
county
where
it
is
imposed
and,
except
as
18
otherwise
provided
in
this
chapter
,
shall
be
collected
and
19
administered
in
the
same
manner
as
the
local
sales
and
services
20
tax.
For
purposes
of
this
chapter
,
“local
sales
and
services
21
tax”
shall
also
include
the
local
excise
tax.
22
Sec.
13.
Section
423B.6,
subsection
1,
paragraphs
b
and
c,
23
Code
2014,
are
amended
to
read
as
follows:
24
b.
A
local
sales
and
services
tax
shall
be
repealed
only
25
on
June
30
or
December
31
but
not
sooner
than
ninety
days
26
following
the
favorable
election
if
one
is
held.
However,
a
27
local
sales
and
services
tax
shall
not
be
repealed
before
the
28
tax
has
been
in
effect
for
one
year.
At
least
forty
days
before
29
the
imposition
or
repeal
of
the
tax,
a
the
city
or
county
,
as
30
applicable,
shall
provide
notice
of
the
action
by
certified
31
mail
to
the
director
of
revenue.
32
c.
The
imposition
of
or
a
rate
change
for
a
local
sales
and
33
services
tax
shall
not
be
applied
to
purchases
from
a
printed
34
catalog
wherein
a
purchaser
computes
the
local
tax
based
on
35
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rates
published
in
the
catalog
unless
a
minimum
of
one
hundred
1
twenty
days’
notice
of
the
imposition
or
rate
change
has
been
2
given
to
the
seller
from
the
catalog
and
the
first
day
of
a
3
calendar
quarter
has
occurred
on
or
after
the
one
hundred
4
twentieth
day.
5
Sec.
14.
Section
423B.6,
subsection
2,
paragraph
b,
Code
6
2014,
is
amended
to
read
as
follows:
7
b.
The
ordinance
of
a
governing
body
of
a
city
or
county
8
board
of
supervisors
imposing
a
local
sales
and
services
9
tax
shall
adopt
by
reference
the
applicable
provisions
of
10
the
appropriate
sections
of
chapter
423
.
All
powers
and
11
requirements
of
the
director
to
administer
the
state
sales
tax
12
law
and
use
tax
law
are
applicable
to
the
administration
of
13
a
local
sales
and
services
tax
law
and
the
local
excise
tax,
14
including
but
not
limited
to
the
provisions
of
section
422.25,
15
subsection
4
,
sections
422.30
,
422.67
,
and
422.68
,
section
16
422.69,
subsection
1
,
sections
422.70
through
422.75
,
section
17
423.14,
subsection
1
and
subsection
2
,
paragraphs
“b”
through
18
“e”
,
and
sections
423.15
,
423.23
,
423.24
,
423.25
,
423.31
19
through
423.35
,
423.37
through
423.42
,
423.46
,
and
423.47
.
20
Local
officials
shall
confer
with
the
director
of
revenue
for
21
assistance
in
drafting
the
ordinance
imposing
a
local
sales
and
22
services
tax.
A
certified
copy
of
the
ordinance
shall
be
filed
23
with
the
director
as
soon
as
possible
after
passage.
24
Sec.
15.
Section
423B.6,
subsection
3,
paragraph
b,
Code
25
2014,
is
amended
to
read
as
follows:
26
b.
All
local
tax
moneys
and
interest
and
penalties
received
27
or
refunded
one
hundred
eighty
days
or
more
after
the
date
on
28
which
the
city
or
county
repeals
its
local
sales
and
services
29
tax
shall
be
deposited
in
or
withdrawn
from
the
state
general
30
fund.
31
Sec.
16.
Section
423B.7,
subsection
1,
paragraph
a,
Code
32
2014,
is
amended
to
read
as
follows:
33
a.
Except
as
provided
in
paragraph
“b”
,
the
director
shall
34
credit
the
local
sales
and
services
tax
receipts
and
interest
35
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and
penalties
from
a
county-imposed
tax
or
a
city-imposed
1
tax
to
the
county’s
account
in
the
local
sales
and
services
2
tax
fund
and
from
a
city-imposed
tax
under
section
423B.1,
3
subsection
2,
to
the
city’s
account
in
the
local
sales
4
and
services
tax
fund
for
the
county
in
which
the
tax
was
5
collected
.
If
the
director
is
unable
to
determine
from
which
6
county
any
of
the
receipts
were
collected,
those
receipts
shall
7
be
allocated
among
the
possible
counties
based
on
allocation
8
rules
adopted
by
the
director.
9
Sec.
17.
Section
423B.7,
subsection
4,
Code
2014,
is
amended
10
to
read
as
follows:
11
4.
a.
Twenty-five
For
each
county
where,
on
July
1,
2014,
12
a
majority
of
the
county’s
population
lives
in
an
area
of
13
the
county
where
a
local
sales
and
services
tax
is
imposed,
14
twenty-five
percent
of
each
county’s
account
shall
be
remitted
15
based
on
the
sum
of
property
tax
dollars
levied
by
the
board
of
16
supervisors
if
the
tax
was
imposed
in
the
unincorporated
areas
17
and
each
city
in
the
county
where
the
tax
was
imposed
during
18
the
three-year
period
beginning
July
1,
1982,
and
ending
June
19
30,
1985,
as
follows:
20
a.
(1)
To
the
board
of
supervisors
a
pro
rata
share
based
21
upon
the
percentage
of
the
total
property
tax
dollars
levied
by
22
the
board
of
supervisors
during
the
above
three-year
period.
23
b.
(2)
To
each
city
council
where
the
tax
was
imposed
24
a
pro
rata
share
based
upon
the
percentage
of
property
tax
25
dollars
levied
by
the
city
during
the
above
three-year
period
26
of
the
above
total
property
tax
dollars
levied
by
the
board
of
27
supervisors
and
each
city
where
the
tax
was
imposed
during
the
28
above
three-year
period.
29
b.
(1)
For
each
county
where,
on
July
1,
2014,
less
than
30
a
majority
of
the
county’s
population
lives
in
an
area
of
31
the
county
where
a
local
sales
and
services
tax
is
imposed,
32
twenty-five
percent
of
each
county’s
account
shall
be
remitted
33
based
on
the
sum
of
property
tax
dollars
levied
by
the
board
of
34
supervisors
if
the
tax
was
imposed
in
the
unincorporated
areas
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and
each
city
in
the
county
where
the
tax
was
imposed
during
1
the
three-year
period
beginning
July
1,
2010,
and
ending
June
2
30,
2013,
as
adjusted
pursuant
to
subparagraph
(2),
as
follows:
3
(a)
To
the
board
of
supervisors
a
pro
rata
share
based
upon
4
the
percentage
of
the
total
property
tax
dollars
levied
by
the
5
board
of
supervisors
during
the
applicable
three-year
period.
6
(b)
To
each
city
council
where
the
tax
was
imposed
a
pro
7
rata
share
based
upon
the
percentage
of
property
tax
dollars
8
levied
by
the
city
during
the
applicable
three-year
period
of
9
the
above
total
property
tax
dollars
levied
by
the
board
of
10
supervisors
and
each
city
where
the
tax
was
imposed
during
the
11
applicable
three-year
period.
12
(2)
On
July
1,
2017,
and
on
July
1
of
each
third
year
13
thereafter,
the
three-year
period
used
in
the
allocation
of
14
local
option
sales
and
services
tax
revenue
under
subparagraph
15
(1)
shall
be
adjusted
by
the
director
of
revenue
by
replacing
16
the
three-year
period
previously
in
effect
under
this
paragraph
17
“b”
with
the
three-year
period
immediately
following
the
18
three-year
period
previously
in
effect.
19
Sec.
18.
Section
423B.7,
subsection
5,
Code
2014,
is
amended
20
by
striking
the
subsection.
21
Sec.
19.
Section
423B.7,
subsection
6,
Code
2014,
is
amended
22
to
read
as
follows:
23
6.
From
each
special
city
account,
the
revenues
shall
be
24
remitted
to
the
city
council
for
deposit
in
the
special
fund
25
created
in
section
403.19,
subsection
2
,
to
be
used
by
the
city
26
as
provided
in
section
423B.10
.
The
distribution
from
the
27
special
city
account
is
not
subject
to
the
distribution
formula
28
provided
in
subsections
3
,
and
4
,
and
5
.
29
Sec.
20.
Section
423B.8,
subsection
1,
paragraph
a,
Code
30
2014,
is
amended
to
read
as
follows:
31
a.
The
goods,
wares,
or
merchandise
are
incorporated
into
32
an
improvement
to
real
estate
in
fulfillment
of
a
written
33
contract
fully
executed
prior
to
the
date
of
the
imposition
or
34
increase
in
rate
of
a
local
sales
and
services
tax
under
this
35
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chapter
.
The
refund
shall
not
apply
to
equipment
transferred
1
in
fulfillment
of
a
mixed
construction
contract.
2
Sec.
21.
Section
423B.10,
subsection
1,
paragraph
b,
Code
3
2014,
is
amended
to
read
as
follows:
4
b.
“Eligible
city”
means
a
city
in
which
a
local
sales
and
5
services
tax
imposed
by
the
city
or
county
applies
or
a
city
6
described
in
section
423B.1,
subsection
2
,
paragraph
“a”
,
Code
7
2014,
and
in
which
an
urban
renewal
area
has
been
designated.
8
Sec.
22.
Section
423B.10,
subsection
5,
Code
2014,
is
9
amended
to
read
as
follows:
10
5.
In
addition
to
the
moneys
received
pursuant
to
the
11
ordinance
authorized
under
subsection
2
,
an
eligible
city
12
may
deposit
any
other
local
sales
and
services
tax
revenues
13
received
by
it
pursuant
to
the
distribution
formula
in
section
14
423B.7,
subsections
3
,
and
4
,
and
5
,
to
the
special
fund
15
described
in
section
403.19,
subsection
2
.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
the
approval
and
imposition
of
local
20
option
taxes.
21
Current
Code
chapter
423B
authorizes
the
imposition
of
local
22
option
taxes,
including
a
local
option
sales
and
services
tax.
23
Currently,
such
a
proposed
tax
is
only
presented
to
the
voters
24
of
a
whole
county
upon
the
filing
of
a
petition
signed
by
25
eligible
electors
of
the
county
equal
in
number
to
5
percent
26
of
the
persons
in
the
county
who
voted
at
the
last
preceding
27
general
election
or
upon
receipt
by
the
county
commissioner
of
28
elections
of
motions
requesting
such
submission,
adopted
by
the
29
governing
bodies
of
the
cities
located
within
the
county
or
the
30
governing
body
of
the
county
for
the
unincorporated
area
of
the
31
county,
representing
at
least
one-half
of
the
population
of
the
32
county.
33
The
bill
amends
the
methods
of
seeking
presentment
of
34
the
local
option
sales
and
services
tax
to
the
voters
by
35
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allowing
the
eligible
electors
of
individual
cities
and
the
1
unincorporated
area
of
a
county
to
file
a
petition
for
an
2
election
to
be
held
in
the
petitioning
jurisdiction
if
such
3
petition
is
signed
by
eligible
electors
of
the
city
or
the
4
unincorporated
area
of
the
county,
as
applicable,
equal
in
5
number
to
5
percent
of
the
persons
in
the
applicable
city
6
or
unincorporated
area
of
the
county
who
voted
at
the
last
7
preceding
general
election.
8
The
bill
also
removes
the
requirement
that
in
order
to
have
9
the
local
sales
and
services
tax
presented
to
the
voters,
10
motions
must
be
approved
by
cities
or
the
county
for
the
11
unincorporated
area,
representing
at
least
one-half
of
the
12
county’s
population.
Instead,
the
bill
allows
individual
13
cities
or
the
county
for
the
unincorporated
area
to
approve
a
14
motion
for
an
election
on
the
local
sales
and
services
tax
to
15
be
held
in
only
that
jurisdiction.
16
The
bill
consequently
removes
the
requirements
related
to
17
approval
of
a
ballot
question
by
cities
that
are
contiguous
to
18
each
other
and
special
provisions
related
to
the
approval
and
19
imposition
of
a
local
sales
and
services
tax
in
a
city
that
is
20
located
in
more
than
one
county.
21
The
bill
provides
that
if
a
proposition
for
the
imposition
22
of
a
local
sales
and
services
tax
submitted
to
the
voters
of
23
a
city
or
the
unincorporated
area
of
a
county
fails
to
gain
24
approval,
it
shall
not
be
resubmitted
to
the
voters
of
that
25
jurisdiction
in
substantially
the
same
form
for
a
period
of
26
three
years
following
the
election
and
may
only
be
resubmitted
27
on
a
day
specified
in
statute
for
special
elections
of
a
city
28
or
county.
29
Current
Code
chapter
423B
authorizes
the
imposition
of
a
30
local
sales
and
services
tax
at
a
rate
of
not
more
than
1
31
percent.
The
bill
requires
a
local
sales
and
services
tax,
if
32
imposed,
to
be
1
percent.
33
The
bill
also
modifies
how
local
sales
and
services
revenues
34
are
distributed
to
local
jurisdictions
within
the
county.
The
35
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bill
provides
that
for
each
county
where,
on
July
1,
2014,
a
1
majority
of
the
county’s
population
lives
in
an
area
of
the
2
county
where
a
local
sales
and
services
tax
is
imposed,
the
3
distribution
formula
for
local
sales
and
services
tax
revenue
4
remains
the
same
as
is
required
under
current
Code
section
5
423B.7,
which
includes
an
allocation
of
25
percent
of
each
6
county’s
account
based
on
the
pro
rata
share
of
property
tax
7
dollars
levied
during
the
three-year
period
beginning
July
1,
8
1982,
and
ending
June
30,
1985,
by
local
jurisdictions
where
9
the
local
sales
and
services
tax
is
imposed.
10
Under
the
bill,
for
each
county
where,
on
July
1,
2014,
less
11
than
a
majority
of
the
county’s
population
lives
in
an
area
of
12
the
county
where
a
local
sales
and
services
tax
is
imposed,
13
25
percent
of
each
county’s
account
shall
be
remitted
based
14
on
the
pro
rata
share
of
property
tax
dollars
levied
during
15
the
three-year
period
beginning
July
1,
2010,
and
ending
June
16
30,
2013,
by
local
jurisdictions
where
the
local
sales
and
17
services
tax
is
imposed.
The
bill
further
provides
that
on
18
July
1,
2017,
and
on
July
1
of
each
third
year
thereafter,
such
19
three-year
period
shall
be
adjusted
by
the
director
of
revenue
20
by
replacing
the
three-year
period
previously
in
effect
with
21
the
three-year
period
immediately
following
the
three-year
22
period
previously
in
effect.
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