SF 472 (LSB 2769XS (5) 88)

SENATE FILE 472

BY  BROWN

A BILL FOR

An Act relating to imposition of optional taxes for emergency medical services by counties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422D.1, subsection 1, paragraph a, unnumbered paragraph 1, Code 2019, is amended to read as follows:
   A Subject to the requirements and limitations of this chapter, a county board of supervisors may offer for voter approval any impose one of the following taxes or a combination of the following taxes:
    Sec. 2.  Section 422D.1, subsections 2, 3, and 4, Code 2019, are amended to read as follows:
   2.  a.  The taxes A tax for emergency medical services shall only be imposed after an election at which a majority of those voting on the question of imposing the tax or combination of taxes specified in subsection 1, paragraph “a”, subparagraph (1) or (2), vote in favor of the question the board of supervisors adopts a resolution declaring emergency medical service to be an essential service within the county. However, the a tax or combination of taxes specified in subsection 1 shall not be imposed on property within or on residents of a benefited emergency medical services district under chapter 357F. The question of imposing the tax or combination of the taxes may be submitted at the regular city election, a special election, or the general election. Notice of the question shall be provided by publication at least sixty days before the time of the election and shall identify the tax or combination of taxes and the rate or rates, as applicable.  To be effective, the resolution declaring emergency medical service to be an essential service shall be considered and voted on for approval at two meetings of the board prior to the meeting at which it is to be finally approved by a majority of the board by recorded vote, as defined in section 331.101. Notice of the first meeting of the board at which the resolution is considered and voted on shall be published not less than sixty days prior to the date of the meeting in one or more newspapers that meet the requirements of section 618.14. The requirements for approval of the resolution or approval of the imposition of a tax under this chapter may not be suspended or waived by the board. 
   b.  If a majority of those voting on the question approve the requirements for adoption of the resolution are satisfied and the board approves the imposition of the tax or combination of taxes, the tax or combination of taxes shall be imposed as follows:
   (1)  A local option income surtax shall be imposed for tax years beginning on or after January 1 of the fiscal year in which the favorable election was held ordinance imposing the tax under section 422D.2 is adopted.
   (2)  An ad valorem property tax shall may be imposed for the fiscal year in which the election was held beginning after adoption of the resolution under this subsection.
   b.  c.  Before a county imposes an income surtax as specified in subsection 1, paragraph “a”, subparagraph (1), a benefited emergency medical services district in the county shall be dissolved, and the county shall be liable for the outstanding obligations of the benefited district. If the benefited district extends into more than one county, the county imposing the income surtax shall be liable for only that portion of the obligations relating to the portion of the benefited district in the county.
   3.  Revenues received by the county from the taxes imposed under this chapter shall be deposited into the emergency medical services trust fund created pursuant to section 422D.6 and shall be used as provided in that section.
   4.  3.  Any tax or combination of taxes imposed shall under this chapter may be for a maximum period of not to exceed five consecutive years after adoption of the resolution under subsection 2 unless extended or renewed by the board at the expiration of the period of imposition.  Extension or renewal of the period of time for imposition of a tax under this chapter shall be by resolution of the board, shall be limited to a period not to exceed five consecutive years, and shall comply with the requirements for approval and imposition under subsection 2.
    Sec. 3.  Section 422D.3, subsection 1, Code 2019, is amended to read as follows:
   1.  A local income surtax shall be imposed January 1 of the fiscal year in which the favorable election was held ordinance imposing the tax is adopted for tax years beginning on or after January 1, and is repealed as provided in section 422D.1, subsection 4 3, as of December 31 for tax years beginning after December 31.
    Sec. 4.  Section 422D.5, Code 2019, is amended to read as follows:
   422D.5  Property tax levy.
   A county may levy an emergency medical services tax at the rate set by the board of supervisors and approved at the election as provided in section 422D.1, on all taxable property in the county for fiscal years beginning with the fiscal year in which the favorable election was held determined under section 422D.1, subsection 2, paragraph “b”, subparagraph (2). The reason for imposing the tax and the amount needed shall be set out on the ballot.  The rate set by the board of supervisors shall not exceed one dollar per thousand dollars of assessed value of taxable property in the county. The rate shall be set so as to raise only the amount needed. The levy is repealed county’s authority to impose the levy for subsequent fiscal years shall be limited as provided in section 422D.1, subsection 4 3.
    Sec. 5.  Section 422D.6, subsections 1 and 2, Code 2019, are amended to read as follows:
   1.  A county authorized to impose imposing a tax under this chapter shall establish an emergency medical services trust fund into which revenues received from the taxes tax imposed shall be deposited. Moneys in the trust fund shall be used for emergency medical services. In addition, moneys in the fund may be used for the purpose of matching federal or state funds for education and training related to emergency medical services.
   2.  A county may enter into chapter 28E agreements with other counties in order to ensure adequate coverage of the county’s service area.
    Sec. 6.  IMPLEMENTATION.  This Act shall not affect the imposition and collection of taxes under chapter 422D in effect on July 1, 2019, and such taxes shall continue to be imposed and administered until the period of authority to impose such taxes in effect on July 1, 2019, expires.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code chapter 422D authorizes counties to impose a property tax levy, an income surtax, or a combination of both taxes within the county, excluding those areas within a benefited emergency medical services district under Code chapter 357F, to be used for emergency medical services, if the taxes are approved at election.
   This bill strikes the requirement for an election to approve a tax authorized by Code chapter 422D and instead requires that the board of supervisors first adopt a resolution declaring emergency medical service to be an essential service within the county. The bill requires the resolution to be considered and voted on for approval at two meetings of the board prior to the meeting at which it is to be finally approved by a majority of the board by recorded vote. The bill establishes notice requirements and prohibits the requirements for approval of the resolution or approval of the imposition of a tax from being suspended or waived by the board. The bill limits the county to imposing either the income surtax or the property tax following adoption of the required resolution. The bill specifies that a tax under Code chapter 422D may be imposed for a period not to exceed five consecutive years after adoption of the resolution and requires an extension or renewal of the period of time for imposition of a tax to comply with the requirements for original approval.
   The bill imposes a rate limitation on the property tax that may be levied by a county of $1 per $1,000 of assessed value of taxable property in the county.
   The bill strikes a limitation on the type of governmental entity that a county may enter into agreements with in order to ensure adequate coverage of the county’s service area.
   The bill does not affect the imposition and collection of taxes under Code chapter 422D in effect on July 1, 2019, and such taxes shall continue to be imposed and administered until the period of authority to impose such taxes in effect on July 1, 2019, expires.