H.F. 609 Section 1. Section 303.52, Code 2017, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 3A. a. The board of trustees may by 3 ordinance impose a hotel and motel tax in accordance with 4 chapter 423A. 5 b. All revenues derived from imposition of the hotel and 6 motel tax shall be spent exclusively on the acquisition of 7 sites for, or constructing, improving, enlarging, equipping, 8 repairing, operating, or maintaining of recreation, convention, 9 cultural, or entertainment facilities including but not limited 10 to memorial buildings, halls and monuments, civic center 11 convention buildings, auditoriums, coliseums, and parking 12 areas or facilities located at those recreation, convention, 13 cultural, or entertainment facilities, or for the promotion and 14 encouragement of tourist and convention business in the land 15 use district and surrounding areas. 16 Sec. 2. Section 423A.4, Code 2017, is amended to read as 17 follows: 18 423A.4 Locally imposed hotel and motel tax. 19 1. A city or , a county , or a land use district created under 20 chapter 303, subchapter IV, may impose , by ordinance of the 21 city council or by resolution of the board of supervisors or 22 by ordinance of the board of trustees, a hotel and motel tax, 23 at a rate not to exceed seven percent, which shall be imposed 24 in increments of one or more full percentage points upon the 25 sales price from the renting of lodging. The tax when imposed 26 by a city shall apply only within the corporate boundaries 27 of that city , and when imposed by a county shall apply only 28 outside incorporated areas within that county , and when imposed 29 by a land use district shall apply only within the corporate 30 boundaries of that district . A hotel and motel tax imposed 31 by a city or county shall not be imposed within the corporate 32 boundaries of a land use district during any period of time 33 that the land use district is imposing a hotel and motel tax. 34 2. Within ten days of the election at which a majority of 35 -1- LSB 1717HV (2) 87 mm/sc/rj 1/ 4

H.F. 609 those voting on the question favors the imposition, repeal, 1 or change in the rate of the hotel and motel tax, the county 2 auditor shall give written notice by sending a copy of the 3 abstract of votes from the favorable election to the director 4 of revenue. 5 3. A local hotel and motel tax shall be imposed on January 6 1 or July 1, following the notification of the director of 7 revenue. Once imposed, the tax shall remain in effect at the 8 rate imposed for a minimum of one year. A local hotel and motel 9 tax shall terminate only on June 30 or December 31. At least 10 forty-five days prior to the tax being effective or prior to a 11 revision in the tax rate or prior to the repeal of the tax, a 12 city , or county , or land use district shall provide notice by 13 mail of such action to the director of revenue. The director 14 shall have the authority to waive the notice requirement. 15 4. a. A city , or county , or land use district shall impose 16 or repeal a hotel and motel tax or increase or reduce the tax 17 rate only after an election at which a majority of those voting 18 on the question favors imposition, repeal, or change in rate. 19 However, a hotel and motel tax of a city or county shall not 20 be repealed or reduced in rate if obligations are outstanding 21 which are payable as provided in section 423A.7 , unless funds 22 sufficient to pay the principal, interest, and premium, if any, 23 on the outstanding obligations at and prior to maturity have 24 been properly set aside and pledged for that purpose. 25 b. If the tax applies only within the corporate boundaries 26 of a city, only the registered voters of the city shall be 27 permitted to vote. The election shall be held at the time of 28 the regular city election or at a special election called for 29 that purpose. If the tax applies only in the unincorporated 30 areas of a county or only within the corporate boundaries 31 of a land use district , only the registered voters of the 32 unincorporated areas of the county or the registered voters of 33 the land use district, as applicable, shall be permitted to 34 vote. The election shall be held at the time of the general 35 -2- LSB 1717HV (2) 87 mm/sc/rj 2/ 4

H.F. 609 election or at a special election called for that purpose. 1 Sec. 3. Section 423A.6, subsection 1, Code 2017, is amended 2 to read as follows: 3 1. The director of revenue shall administer the state and 4 local hotel and motel tax as nearly as possible in conjunction 5 with the administration of the state sales tax law, except 6 that portion of the law which implements the streamlined sales 7 and use tax agreement. The director shall provide appropriate 8 forms, or provide on the regular state tax forms, for reporting 9 state and local hotel and motel tax liability. All moneys 10 received or refunded one hundred eighty days after the date 11 on which a city , or county , or land use district terminates 12 its local hotel and motel tax and all moneys received from the 13 state hotel and motel tax shall be deposited in or withdrawn 14 from the general fund of the state. 15 Sec. 4. Section 423A.7, subsection 2, Code 2017, is amended 16 to read as follows: 17 2. All moneys in the local transient guest tax fund shall 18 be remitted at least quarterly by the department, pursuant to 19 rules of the director of revenue, to each city in the amount 20 collected from businesses in that city , and to each county in 21 the amount collected from businesses in the unincorporated 22 areas of the county , and to each land use district in the 23 amount collected from businesses in that land use district . 24 Sec. 5. Section 423A.7, subsection 4, unnumbered paragraph 25 1, Code 2017, is amended to read as follows: 26 The revenue derived by a city or county from any local hotel 27 and motel tax authorized by section 423A.4 shall be used by a 28 city or county as follows: 29 Sec. 6. Section 423A.7, Code 2017, is amended by adding the 30 following new subsection: 31 NEW SUBSECTION . 5. The revenue derived by a land use 32 district from any local hotel and motel tax authorized by 33 section 423A.4 shall be expended exclusively for the purposes 34 set forth in section 303.52, subsection 3A, paragraph “b” . 35 -3- LSB 1717HV (2) 87 mm/sc/rj 3/ 4

H.F. 609 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill permits a land use district created under Code 4 sections 303.41 through 303.68 to impose the local hotel and 5 motel tax under Code chapter 423A upon the renting of any 6 lodging within the land use district. The bill amends the 7 powers and duties of the board of trustees of a land use 8 district to permit the board to impose the tax. 9 The tax may only be imposed by ordinance of the board of 10 trustees of the district after an election at which a majority 11 of those voting favors imposition. Only registered voters 12 of the land use district are permitted to vote, and the tax 13 only applies within the corporate boundaries of the land use 14 district. A majority vote of the registered voters of the 15 district is also required for a repeal or rate change. The tax 16 rate may not exceed 7 percent and must be in increments of one 17 or more full percentage points. 18 The bill provides that revenues derived by a land use 19 district from the local hotel and motel tax must be spent 20 exclusively on certain recreation, convention, cultural, or 21 entertainment facilities as specified in the bill or for the 22 promotion and encouragement of tourist and convention business 23 in the district and surrounding areas. The bill also provides 24 that a hotel and motel tax imposed by a city or county shall 25 not be imposed within the corporate boundaries of a land use 26 district during any period of time that the land use district 27 is imposing a hotel and motel tax. The bill amends provisions 28 of Code sections 423A.4 and 423A.7 relating to the power to 29 pledge future hotel and motel tax revenues toward the payment 30 of certain bonds to specify that such bonding provisions only 31 apply to cities and counties that levy the tax. 32 -4- LSB 1717HV (2) 87 mm/sc/rj 4/ 4