H.F. 186 Section 1. Section 303.52, Code 2017, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 3A. The board of trustees may by ordinance 3 impose a hotel and motel tax in accordance with chapter 423A. 4 Sec. 2. Section 423A.4, Code 2017, is amended to read as 5 follows: 6 423A.4 Locally imposed hotel and motel tax. 7 1. A city or , a county , or a land use district created under 8 chapter 303, subchapter IV, may impose , by ordinance of the 9 city council or by resolution of the board of supervisors or 10 by ordinance of the board of trustees, a hotel and motel tax, 11 at a rate not to exceed seven percent, which shall be imposed 12 in increments of one or more full percentage points upon the 13 sales price from the renting of lodging. The tax when imposed 14 by a city shall apply only within the corporate boundaries 15 of that city , and when imposed by a county shall apply only 16 outside incorporated areas within that county , and when imposed 17 by a land use district shall apply only within the corporate 18 boundaries of that district . A hotel and motel tax imposed 19 by a city or county shall not be imposed within the corporate 20 boundaries of a land use district during any period of time 21 that the land use district is imposing a hotel and motel tax. 22 2. Within ten days of the election at which a majority of 23 those voting on the question favors the imposition, repeal, 24 or change in the rate of the hotel and motel tax, the county 25 auditor shall give written notice by sending a copy of the 26 abstract of votes from the favorable election to the director 27 of revenue. 28 3. A local hotel and motel tax shall be imposed on January 29 1 or July 1, following the notification of the director of 30 revenue. Once imposed, the tax shall remain in effect at the 31 rate imposed for a minimum of one year. A local hotel and motel 32 tax shall terminate only on June 30 or December 31. At least 33 forty-five days prior to the tax being effective or prior to a 34 revision in the tax rate or prior to the repeal of the tax, a 35 -1- LSB 1717YH (5) 87 mm/sc/rj 1/ 4

H.F. 186 city , or county , or land use district shall provide notice by 1 mail of such action to the director of revenue. The director 2 shall have the authority to waive the notice requirement. 3 4. a. A city , or county , or land use district shall impose 4 or repeal a hotel and motel tax or increase or reduce the tax 5 rate only after an election at which a majority of those voting 6 on the question favors imposition, repeal, or change in rate. 7 However, a hotel and motel tax of a city or county shall not 8 be repealed or reduced in rate if obligations are outstanding 9 which are payable as provided in section 423A.7 , unless funds 10 sufficient to pay the principal, interest, and premium, if any, 11 on the outstanding obligations at and prior to maturity have 12 been properly set aside and pledged for that purpose. 13 b. If the tax applies only within the corporate boundaries 14 of a city, only the registered voters of the city shall be 15 permitted to vote. The election shall be held at the time of 16 the regular city election or at a special election called for 17 that purpose. If the tax applies only in the unincorporated 18 areas of a county or only within the corporate boundaries 19 of a land use district , only the registered voters of the 20 unincorporated areas of the county or the registered voters of 21 the land use district, as applicable, shall be permitted to 22 vote. The election shall be held at the time of the general 23 election or at a special election called for that purpose. 24 Sec. 3. Section 423A.6, subsection 1, Code 2017, is amended 25 to read as follows: 26 1. The director of revenue shall administer the state and 27 local hotel and motel tax as nearly as possible in conjunction 28 with the administration of the state sales tax law, except 29 that portion of the law which implements the streamlined sales 30 and use tax agreement. The director shall provide appropriate 31 forms, or provide on the regular state tax forms, for reporting 32 state and local hotel and motel tax liability. All moneys 33 received or refunded one hundred eighty days after the date 34 on which a city , or county , or land use district terminates 35 -2- LSB 1717YH (5) 87 mm/sc/rj 2/ 4

H.F. 186 its local hotel and motel tax and all moneys received from the 1 state hotel and motel tax shall be deposited in or withdrawn 2 from the general fund of the state. 3 Sec. 4. Section 423A.7, subsection 2, Code 2017, is amended 4 to read as follows: 5 2. All moneys in the local transient guest tax fund shall 6 be remitted at least quarterly by the department, pursuant to 7 rules of the director of revenue, to each city in the amount 8 collected from businesses in that city , and to each county in 9 the amount collected from businesses in the unincorporated 10 areas of the county , and to each land use district in the 11 amount collected from businesses in that land use district . 12 Sec. 5. Section 423A.7, subsection 4, unnumbered paragraph 13 1, Code 2017, is amended to read as follows: 14 The revenue derived by a city or county from any local hotel 15 and motel tax authorized by section 423A.4 shall be used by a 16 city or county as follows: 17 Sec. 6. Section 423A.7, Code 2017, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 5. The revenue derived by a land use 20 district from any local hotel and motel tax authorized by 21 section 423A.4 may be expended for any lawful purpose of the 22 land use district. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill permits a land use district created under Code 27 sections 303.41 through 303.68 to impose the local hotel and 28 motel tax under Code chapter 423A upon the renting of any 29 lodging within the land use district. The bill amends the 30 powers and duties of the board of trustees of a land use 31 district to permit the board to impose the tax. 32 The tax may only be imposed by ordinance of the board of 33 trustees of the district after an election at which a majority 34 of those voting favors imposition. Only registered voters 35 -3- LSB 1717YH (5) 87 mm/sc/rj 3/ 4

H.F. 186 of the land use district are permitted to vote, and the tax 1 only applies within the corporate boundaries of the land use 2 district. A majority vote of the registered voters of the 3 district is also required for a repeal or rate change. The tax 4 rate may not exceed 7 percent and must be in increments of one 5 or more full percentage points. 6 The bill provides that revenues derived by a land use 7 district from the local hotel and motel tax may be expended 8 for any lawful purposes of the land use district. The bill 9 also provides that a hotel and motel tax imposed by a city or 10 county shall not be imposed within the corporate boundaries of 11 a land use district during any period of time that the land use 12 district is imposing a hotel and motel tax. The bill amends 13 provisions of Code sections 423A.4 and 423A.7 relating to the 14 power to pledge future hotel and motel tax revenues toward 15 the payment of certain bonds to specify that such bonding 16 provisions only apply to cities and counties that levy the tax. 17 -4- LSB 1717YH (5) 87 mm/sc/rj 4/ 4