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House Study Bill 43 - IntroducedA Bill ForAn Act 1relating to the approval and imposition of local option
2sales and services taxes.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423B.1, subsection 1, Code 2017, is
2amended by striking the subsection and inserting in lieu
3thereof the following:
41. a. A county may impose by ordinance of the board of
5supervisors the local vehicle tax authorized by this chapter,
6subject to this section.
7b. A city or county may impose by ordinance the local sales
8and services tax authorized by this chapter, subject to this
9section.
10 Sec. 2. Section 423B.1, subsection 2, paragraph b,
11subparagraph (3), Code 2017, is amended to read as follows:
12(3) The tax once imposed shall continue to be imposed until
13the county-imposed tax is reduced or increased in rate or
14 repealed, and then the city-imposed tax shall also be reduced
15or increased in rate or repealed in the same amount and be
16 effective on the same date.
17 Sec. 3. Section 423B.1, subsection 3, Code 2017, is amended
18to read as follows:
193. a. A local option tax shall be imposed only after an
20election at which If a majority of those voting on the question
21of imposition of a local option tax favors imposition and, the
22local option tax shall then be imposed at the rate specified on
23the ballot for an unlimited period until repealed as provided
24in subsection 6, paragraph “a” this chapter.
25b. If the tax is a local vehicle tax imposed by a county,
26it shall apply to all incorporated and unincorporated areas of
27the county.
28c. (1) (a) If the tax is a local sales and services tax
29imposed by a county that is a qualified county, it shall only
30apply to those incorporated areas and the unincorporated area
31of that county in which if a majority of those voting in the
32area on the tax favors its imposition.
33(b) If the tax is a local sales and services tax imposed by
34a city located in a county that is a qualified county, other
35than a city under subsection 2, it shall only apply to the city
-1-1if a majority of those voting in the city on the tax favors its
2imposition.
3(2) If the tax is a local sales and services tax imposed by
4a county that is not a qualified county, it shall only apply to
5those incorporated areas and the unincorporated area of that
6county in which a majority of those voting in the area on the
7tax favors its imposition.For purposes of the local sales
8and services tax imposed by a county that is not a qualified
9county, all cities contiguous to each other shall be treated
10as part of one incorporated area and the tax would shall be
11imposed in each of those contiguous cities only if the majority
12of those voting in the total area covered by the contiguous
13cities favors its imposition. In the case of a local sales and
14services tax submitted to the registered voters of two or more
15contiguous counties as provided in subsection 4, paragraph “c”,
16all cities contiguous to each other shall be treated as part of
17one incorporated area, even if the corporate boundaries of one
18or more of the cities include areas of more than one county,
19and the tax shall be imposed in each of those contiguous cities
20only if a majority of those voting on the tax in the total area
21covered by the contiguous cities favored its imposition. For
22purposes of the local sales and services tax, a city is not
23contiguous to another city if the only road access between the
24two cities is through another state.
25 Sec. 4. Section 423B.1, Code 2017, is amended by adding the
26following new subsection:
27 NEW SUBSECTION. 3A. For purposes of this chapter,
28“qualified county” means a county with a population in excess
29of four hundred thousand, a county with a population of at
30least one hundred thirty thousand but not more than one hundred
31thirty-one thousand, or a county with a population of at least
32sixty thousand but not more than seventy thousand, according
33to the 2010 federal decennial census. Except for purposes
34of allocating local sales and services tax receipts based
35on the county in which the tax was collected under section
-2-1423B.7, subsection 1, a city shall be deemed to be located in a
2qualified county if a majority of the population of the city,
3according to the 2010 federal decennial census, resides in the
4qualified county.
5 Sec. 5. Section 423B.1, subsections 4 and 5, Code 2017, are
6amended to read as follows:
74. a. (1) A The county board of supervisors shall direct
8within thirty days the county commissioner of elections to
9submit the question of imposition of a local vehicle tax or
10a local sales and services tax to the registered voters of
11the incorporated and unincorporated areas of the county upon
12receipt of a petition, requesting imposition of a local vehicle
13tax or a local sales and services tax, signed by eligible
14electors of the whole county equal in number to five percent of
15the persons in the whole county who voted at the last preceding
16general election. In the case of a local vehicle tax, the The
17 petition requesting imposition shall specify the rate of tax
18and the classes, if any, that are to be exempt. If more than
19one valid petition is received, the earliest received petition
20shall be used.
21(2) The county board of supervisors for a qualified county
22shall direct within thirty days the county commissioner of
23elections to submit the question of imposition of a local
24sales and services tax to the registered voters of a city or
25to the registered voters of the unincorporated area of the
26county upon receipt by the board of supervisors of a petition
27requesting imposition of a local sales and services tax, signed
28by eligible electors of the city or eligible electors of the
29unincorporated area of the county, as applicable, equal in
30number to five percent of the persons in the applicable city
31or unincorporated area of the county who voted at the last
32preceding general election. If more than one valid petition
33is received for a city or for the unincorporated area of the
34county, the earliest received petition shall be used.
35(3) A county board of supervisors for a county that is not
-3-1a qualified county shall direct within thirty days the county
2commissioner of elections to submit the question of imposition
3of a local sales and services tax to the registered voters of
4the incorporated and unincorporated areas of the county upon
5receipt of a petition requesting imposition of a local sales
6and services tax, signed by eligible electors of the whole
7county equal in number to five percent of the persons in the
8whole county who voted at the last preceding general election.
9If more than one valid petition is received, the earliest
10received petition shall be used.
11b. (1) The question of the imposition of a local sales
12and services tax in a qualified county shall be submitted to
13the registered voters of the city or to the registered voters
14of the unincorporated area of the county upon receipt by the
15county commissioner of elections of a motion requesting such
16submission, adopted by the governing body of a city located
17within the county or of the county for the unincorporated area
18of the county. Upon adoption of such motion, the governing
19body of the city or county for the unincorporated area shall
20submit the motion to the county commissioner of elections. The
21county commissioner of elections shall publish notice of the
22ballot proposition concerning the imposition of the local sales
23and services tax. The manner provided under this subparagraph
24for the submission of the question of imposition of a local
25sales and services tax is an alternative to the manner provided
26in paragraph “a”, subparagraph (2).
27(2) The question of the imposition of a local sales and
28services tax in a county that is not a qualified county shall
29be submitted to the registered voters of the incorporated and
30unincorporated areas of the county upon receipt by the county
31commissioner of elections of the motion or motions, requesting
32such submission, adopted by the governing body or bodies of the
33city or cities located within the county or of the county, for
34the unincorporated areas of the county, representing at least
35one half of the population of the county. Upon adoption of
-4-1such motion, the governing body of the city or county, for the
2unincorporated areas, shall submit the motion to the county
3commissioner of elections and in the case of the governing
4body of the city shall notify the board of supervisors of the
5adoption of the motion. The county commissioner of elections
6shall keep a file on all the motions received and, upon
7reaching the population requirements, shall publish notice of
8the ballot proposition concerning the imposition of the local
9sales and services tax. A motion ceases to be valid at the
10time of the holding of the regular election for the election of
11members of the governing body which that adopted the motion.
12The county commissioner of elections shall eliminate from the
13file any motion that ceases to be valid. The manner provided
14under this paragraph subparagraph for the submission of the
15question of imposition of a local sales and services tax
16is an alternative to the manner provided in paragraph “a”,
17subparagraph (3).
18c. Upon receipt of petitions or motions calling for the
19submission of the question of the imposition of a local sales
20and services tax as described in paragraph “a” or “b”, the
21boards of supervisors of two or more contiguous counties in
22which the question is to be submitted may enter into a joint
23agreement providing that for purposes of this chapter, a
24city whose corporate boundaries include areas of more than
25one county shall be treated as part of the county in which a
26majority of the residents of the city reside. In such event,
27the county commissioners of elections from each such county
28shall cooperate in the selection of a single date upon which
29the election shall be held, and for all purposes of this
30chapter relating to the imposition, repeal, change of use,
31or collection of the tax, such a city shall be deemed to be
32part of the county in which a majority of the residents of the
33city reside. A copy of the joint agreement shall be provided
34promptly to the director of revenue.
355. a. The county commissioner of elections shall submit
-5-1the question of imposition of a local option tax at an election
2held on a date specified in section 39.2, subsection 4,
3paragraph “a” or “b”, as applicable. The election shall not be
4held sooner than sixty days after publication of notice of the
5ballot proposition.
6b. The ballot proposition shall specify the type and rate of
7tax and, in the case of a vehicle tax, the classes that will be
8exempt and, in the case of a local sales and services tax, the
9date it will be imposed which date shall not be earlier than
10ninety days following the election. The ballot proposition
11shall also specify the approximate amount of local option tax
12revenues that will be used for property tax relief, subject to
13the requirement of section 423B.7, subsection 7, paragraph “b”,
14 and shall contain a statement as to the specific purpose or
15purposes for which the revenues shall otherwise be expended.
16If the county board of supervisors in a county that is not
17a qualified county or if the board of supervisors or city
18council, as applicable, in a qualified county decides under
19subsection 6 to specify a date on which the local option sales
20and services tax shall automatically be repealed, the date of
21the repeal shall also be specified on the ballot.
22c. The rate of the vehicle tax shall be in increments of one
23dollar per vehicle as set by the petition seeking to impose the
24tax.
25d. The rate of a local sales and services tax shall not be
26more than one percent as set by the governing body.
27e. The state commissioner of elections shall establish by
28rule the form for the ballot proposition which form shall be
29uniform throughout the state.
30 Sec. 6. Section 423B.1, subsection 6, paragraph a,
31subparagraph (1), Code 2017, is amended by striking the
32subparagraph.
33 Sec. 7. Section 423B.1, subsection 6, paragraph a,
34subparagraphs (2) and (3), Code 2017, are amended to read as
35follows:
-6- 1(2) (a) The A local option tax may be repealed or the
2rate of the local vehicle tax increased or decreased or the
3use thereof of a local option tax changed after an election at
4which a majority of those voting on the question of repeal or
5rate or use change favored favors the repeal or rate or use
6change.
7(b) The date on which the repeal, rate, or use change is
8to take effect shall not be earlier than ninety days following
9the election. The election at which the question of repeal
10or rate or use change is offered shall be called and held in
11the same manner and under the same conditions as provided in
12subsections 4 and 5 for the election on the imposition of the
13local option tax. However, in the case of a local sales and
14services tax where the tax has not been imposed countywide, the
15question of repeal or imposition or rate or use change shall
16be voted on only by the registered voters of the areas of the
17county where the tax has been imposed or has not been imposed,
18as appropriate.
19(c) However, the The governing body of the incorporated
20area city or unincorporated area where the local sales and
21services tax is imposed may, upon its own motion, request the
22county commissioner of elections to hold an election in the
23incorporated city or unincorporated area, as appropriate, on
24the question of the change in use of local sales and services
25tax revenues. The election may be held at any time but not
26sooner than sixty days following publication of the ballot
27proposition. If a majority of those voting in the incorporated
28 city or unincorporated area on the change in use favors the
29change, the governing body of that city or area shall change
30the use to which the revenues shall be used. The ballot
31proposition shall list the present use of the revenues, the
32proposed use, and the date after which revenues received will
33be used for the new use.
34(3) When submitting the question of the imposition of a
35local sales and services tax, the county board of supervisors
-7- 1of a county that is not a qualified county or the board of
2supervisors or the governing body of the city, as applicable,
3in a qualified county may direct that the question contain a
4provision for the repeal, without election, of the local sales
5and services tax on a specific date, which date shall be as
6provided in section 423B.6, subsection 1.
7 Sec. 8. Section 423B.1, subsection 7, paragraph b, Code
82017, is amended to read as follows:
9b. Costs of local option tax elections shall be apportioned
10among jurisdictions within the county voting on the question
11at the same election on a pro rata basis in proportion to the
12number of registered voters in each taxing jurisdiction voting
13on the question and the total number of registered voters in
14all of the taxing jurisdictions voting on the question.
15 Sec. 9. Section 423B.1, subsection 8, Code 2017, is amended
16by striking the subsection.
17 Sec. 10. Section 423B.1, subsections 9 and 10, Code 2017,
18are amended to read as follows:
199. a. In a county that has imposed a local option sales
20and services tax that is not a qualified county, the board
21of supervisors shall, notwithstanding any contrary provision
22of this chapter, repeal the local option sales and services
23tax in the unincorporated areas or in an incorporated city
24area in which the tax has been imposed upon adoption of its
25 the board’s own motion for repeal in the unincorporated areas
26or upon receipt of a motion adopted by the governing body of
27that incorporated city area requesting repeal. The board of
28supervisors shall repeal the local option sales and services
29tax effective on the later of the date of the adoption of
30the repeal motion or the earliest date specified in section
31423B.6, subsection 1, following adoption of the motion. For
32purposes of this subsection paragraph, incorporated city area
33includes an incorporated city which is contiguous to another
34incorporated city.
35b. For a qualified county:
-8- 1(1) In a city that has imposed a local sales and services
2tax, the governing body of the city shall, notwithstanding any
3contrary provision of this chapter, repeal the local sales and
4services tax in the city upon adoption of its own motion for
5repeal. The governing body of the city shall repeal the local
6sales and services tax effective on the earliest date specified
7in section 423B.6, subsection 1, following adoption of the
8motion.
9(2) In the unincorporated area of the county where the
10local sales and services tax has been imposed, the board of
11supervisors shall, notwithstanding any contrary provision of
12this chapter, repeal the local sales and services tax in the
13unincorporated area of the county upon adoption of its own
14motion for repeal. The board of supervisors shall repeal the
15local sales and services tax effective on the earliest date
16specified in section 423B.6, subsection 1, following adoption
17of the motion.
1810. Notwithstanding subsection 9 or any other contrary
19provision of this chapter, a local option sales and services
20tax shall not be repealed or reduced in rate if obligations are
21outstanding which are payable as provided in section 423B.9,
22unless funds sufficient to pay the principal, interest, and
23premium, if any, on the outstanding obligations at and prior
24to maturity have been properly set aside and pledged for that
25purpose.
26 Sec. 11. Section 423B.5, subsections 1 and 4, Code 2017, are
27amended to read as follows:
281. A local sales and services tax at the rate of not more
29than one percent may be imposed by a city or county pursuant
30to this chapter shall be imposed on the sales price taxed by
31the state under chapter 423, subchapter II. A local sales
32and services tax shall be imposed on the same basis as the
33state sales and services tax or in the case of the use of
34natural gas, natural gas service, electricity, or electric
35service on the same basis as the state use tax and shall not
-9-1be imposed on the sale of any property or on any service not
2taxed by the state, except the tax shall not be imposed on
3the sales price from the sale of motor fuel or special fuel
4as defined in chapter 452A which is consumed for highway use
5or in watercraft or aircraft if the fuel tax is paid on the
6transaction and a refund has not or will not be allowed, on the
7sales price from the sale of equipment by the state department
8of transportation, or on the sales price from the sale or use
9of natural gas, natural gas service, electricity, or electric
10service in a city or county where the sales price from the sale
11of natural gas or electric energy is subject to a franchise
12fee or user fee during the period the franchise or user fee
13is imposed. A local sales and services tax is applicable
14to transactions within those incorporated and the city or
15 unincorporated areas area of the county where it is imposed and
16shall be collected by all persons required to collect state
17sales taxes. All cities contiguous to each other shall be
18treated as part of one incorporated area and the tax would be
19imposed in each of those contiguous cities only if the majority
20of those voting in the total area covered by the contiguous
21cities favors its imposition. In the case of a local sales and
22services tax submitted to the registered voters of two or more
23contiguous counties as provided in section 423B.1, subsection
244, paragraph “c”, all cities contiguous to each other shall be
25treated as part of one incorporated area, even if the corporate
26boundaries of one or more of the cities include areas of more
27than one county, and the tax shall be imposed in each of those
28contiguous cities only if a majority of those voting on the tax
29in the total area covered by the contiguous cities favored its
30imposition. However, a local sales and services tax is not
31applicable to transactions of a retailer holding a retail sales
32tax permit at a place of business, as defined in section 423.1,
33if the retailer’s place of business is located in part within a
34city or unincorporated area of the county where the tax is not
35imposed.
-10- 14. If a local sales and services tax is imposed by a city or
2 county pursuant to this chapter, a local excise tax at the same
3rate shall be imposed by the city or county on the purchase
4price of natural gas, natural gas service, electricity, or
5electric service subject to tax under chapter 423, subchapter
6III, and not exempted from tax by any provision of chapter
7423, subchapter III. The local excise tax is applicable only
8to the use of natural gas, natural gas service, electricity,
9or electric service within those incorporated cities and
10unincorporated areas of the county where it is imposed
11and, except as otherwise provided in this chapter, shall be
12collected and administered in the same manner as the local
13sales and services tax. For purposes of this chapter, “local
14sales and services tax” shall also include the local excise tax.
15 Sec. 12. Section 423B.6, subsection 1, paragraphs b and c,
16Code 2017, are amended to read as follows:
17b. A local sales and services tax shall be repealed only
18on June 30 or December 31 but not sooner than ninety days
19following the favorable election if one is held. However, a
20local sales and services tax shall not be repealed before the
21tax has been in effect for one year. At least forty days before
22the imposition or repeal of the tax, a the city or county, as
23applicable, shall provide notice of the action by certified
24mail to the director of revenue.
25c. The imposition of or a rate change for a local sales and
26services tax shall not be applied to purchases from a printed
27catalog wherein a purchaser computes the local tax based on
28rates published in the catalog unless a minimum of one hundred
29twenty days’ notice of the imposition or rate change has been
30given to the seller from the catalog and the first day of a
31calendar quarter has occurred on or after the one hundred
32twentieth day.
33 Sec. 13. Section 423B.6, subsection 2, paragraph b, Code
342017, is amended to read as follows:
35b. The ordinance of a governing body of a city or county
-11-1board of supervisors imposing a local sales and services
2tax shall adopt by reference the applicable provisions of
3the appropriate sections of chapter 423. All powers and
4requirements of the director to administer the state sales tax
5law and use tax law are applicable to the administration of
6a local sales and services tax law and the local excise tax,
7including but not limited to the provisions of section 422.25,
8subsection 4, sections 422.30, 422.67, and 422.68, section
9422.69, subsection 1, sections 422.70 through 422.75, section
10423.14, subsection 1 and subsection 2, paragraphs “b” through
11“e”, and sections 423.15, 423.23, 423.24, 423.25, 423.31
12through 423.35, 423.37 through 423.42, 423.46, and 423.47.
13Local officials shall confer with the director of revenue for
14assistance in drafting the ordinance imposing a local sales and
15services tax. A certified copy of the ordinance shall be filed
16with the director as soon as possible after passage.
17 Sec. 14. Section 423B.6, subsection 3, paragraph b, Code
182017, is amended to read as follows:
19b. All local tax moneys and interest and penalties received
20or refunded one hundred eighty days or more after the date
21on which the city or county repeals its the local sales and
22services tax shall be deposited in or withdrawn from the state
23general fund.
24 Sec. 15. Section 423B.7, subsection 1, Code 2017, is amended
25to read as follows:
261. a. Except as provided in paragraph paragraphs “b” and
27“c”, the director shall credit the local sales and services
28tax receipts and interest and penalties from a county-imposed
29tax to the county’s account in the local sales and services
30tax fund and from a city-imposed tax under section 423B.1,
31subsection 2, to the city’s account in the local sales
32and services tax fund for the county in which the tax was
33collected. If the director is unable to determine from which
34county any of the receipts were collected, those receipts shall
35be allocated among the possible counties based on allocation
-12-1rules adopted by the director.
2b. Notwithstanding paragraph “a”, the The director shall
3credit the designated amount of the increase in local sales
4and services tax receipts, as computed in section 423B.10,
5collected in an urban renewal area of an eligible city that has
6adopted an ordinance pursuant to section 423B.10, subsection
72, into a special city account in the local sales and services
8tax fund.
9c. The director shall credit the local sales and services
10tax receipts and interest and penalties from a city-imposed tax
11under section 423B.1, subsection 2, to the city’s account in
12the local sales and services tax fund.
13 Sec. 16. Section 423B.7, subsection 7, Code 2017, is amended
14to read as follows:
157. a. Local Subject to the requirement of paragraph “b”,
16local sales and services tax moneys received by a city or
17county may be expended for any lawful purpose of the city or
18county.
19b. Each city located in a qualified county and each
20qualified county for the unicorporated area for which
21the imposition of the local sales and services tax in the
22incorporated area or unincorporated area was approved at
23election on or after the effective date of this Act shall use
24not less than fifty percent of the moneys received for property
25tax relief.
26 Sec. 17. Section 423B.8, subsection 1, paragraph a, Code
272017, is amended to read as follows:
28a. The goods, wares, or merchandise are incorporated into
29an improvement to real estate in fulfillment of a written
30contract fully executed prior to the date of the imposition or
31increase in rate of a local sales and services tax under this
32chapter. The refund shall not apply to equipment transferred
33in fulfillment of a mixed construction contract.
34 Sec. 18. Section 423B.10, subsection 1, paragraph b, Code
352017, is amended to read as follows:
-13- 1b. “Eligible city” means a city in which a local sales and
2services tax imposed by the city or county applies or a city
3described in section 423B.1, subsection 2, paragraph “a”, and in
4which an urban renewal area has been designated.
5 Sec. 19. IMPLEMENTATION. This Act shall not affect the
6imposition of local option taxes in effect on the effective
7date of this Act and such taxes shall continue to be imposed
8until their repeal pursuant to chapter 423B. The law regarding
9repeal in effect at the time of the repeal governs the repeal
10of the local option taxes.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill relates to the approval and imposition of the
15local option sales and services tax. Current Code chapter 423B
16authorizes the imposition of local option taxes, including
17a local option sales and services tax. Currently, such a
18proposed tax is only presented to the voters of a whole county
19upon the filing of a petition signed by eligible electors of
20the county equal in number to 5 percent of the persons in
21the county who voted at the last preceding general election
22or upon receipt by the county commissioner of elections of
23motions requesting such submission, adopted by the governing
24bodies of the cities located within the county or the governing
25body of the county for the unincorporated area of the county,
26representing at least one-half of the population of the county.
27The bill amends the methods of seeking presentment of the
28local option sales and services tax to the voters of certain
29qualified counties by allowing the eligible electors of
30individual cities and the unincorporated area of a county to
31file a petition for an election to be held in the petitioning
32jurisdiction if such petition is signed by eligible electors
33of the city or the unincorporated area of the county, as
34applicable, equal in number to 5 percent of the persons in
35the applicable city or unincorporated area of the county who
-14-1voted at the last preceding general election. The bill defines
2“qualified county” to mean a county with a population in excess
3of 400,000, a county with a population of at least 130,000 but
4not more than 131,000, or a county with a population of at
5least 60,000 but not more than 70,000, according to the 2010
6federal decennial census. For those qualified counties, the
7bill also removes the requirement that in order to have the
8local sales and services tax presented to the voters, motions
9must be approved by cities or the county for the unincorporated
10area, representing at least one-half of the county’s
11population. Instead, the bill allows individual cities or the
12county for the unincorporated area within a qualified county
13to approve a motion for an election on the local sales and
14services tax to be held in only that jurisdiction.
15The bill specifies that except for purposes of allocating
16local sales and services tax receipts based on the county in
17which the tax was collected, a city shall be deemed to be
18located in a qualified county if a majority of the population
19of the city, according to the 2010 federal decennial census,
20resides in the qualified county.
21The bill provides that in a qualified county a city or the
22board of supervisors for the unincorporated area of a county
23may repeal the local sales and services tax in the city upon
24adoption of its own motion for repeal.
25For those counties that are not qualified counties, the
26methods of seeking presentment of the local option sales and
27services tax to the voters and the methods for repealing such
28a tax remain the same as required under current Code chapter
29423B.
30The bill provides that each city or county for which the
31imposition of the local sales and services tax was approved at
32election on or after the effective date of the bill shall use
33not less than 50 percent of the moneys received for property
34tax relief.
35The bill strikes special provisions related to the approval
-15-1and imposition of a local sales and services tax in a city that
2is located in two or more contiguous counties.
3The bill provides that a local sales and services tax is
4not applicable to transactions of a retailer holding a retail
5sales tax permit at a place of business if the retailer’s place
6of business is located in part within a city or unincorporated
7area of the county where the tax is not imposed.
8Current Code chapter 423B authorizes the imposition of a
9local sales and services tax at a rate of not more than 1
10percent. The bill requires a local sales and services tax, if
11imposed, to be 1 percent.
12The bill provides that the imposition of local option
13taxes in effect on the effective date of the bill shall not
14be affected by the bill, and such taxes shall continue to
15be imposed until their repeal pursuant to Code chapter 423B.
16 The law in effect regarding repeal at the time of the repeal
17governs the repeal of the local option taxes.
-16-md/sc
2sales and services taxes.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423B.1, subsection 1, Code 2017, is
2amended by striking the subsection and inserting in lieu
3thereof the following:
41. a. A county may impose by ordinance of the board of
5supervisors the local vehicle tax authorized by this chapter,
6subject to this section.
7b. A city or county may impose by ordinance the local sales
8and services tax authorized by this chapter, subject to this
9section.
10 Sec. 2. Section 423B.1, subsection 2, paragraph b,
11subparagraph (3), Code 2017, is amended to read as follows:
12(3) The tax once imposed shall continue to be imposed until
13the county-imposed tax is reduced or increased in rate or
14 repealed, and then the city-imposed tax shall also be reduced
15or increased in rate or repealed in the same amount and be
16 effective on the same date.
17 Sec. 3. Section 423B.1, subsection 3, Code 2017, is amended
18to read as follows:
193. a. A local option tax shall be imposed only after an
20election at which If a majority of those voting on the question
21of imposition of a local option tax favors imposition and, the
22local option tax shall then be imposed at the rate specified on
23the ballot for an unlimited period until repealed as provided
24in subsection 6, paragraph “a” this chapter.
25b. If the tax is a local vehicle tax imposed by a county,
26it shall apply to all incorporated and unincorporated areas of
27the county.
28c. (1) (a) If the tax is a local sales and services tax
29imposed by a county that is a qualified county, it shall only
30apply to those incorporated areas and the unincorporated area
31of that county in which if a majority of those voting in the
32area on the tax favors its imposition.
33(b) If the tax is a local sales and services tax imposed by
34a city located in a county that is a qualified county, other
35than a city under subsection 2, it shall only apply to the city
-1-1if a majority of those voting in the city on the tax favors its
2imposition.
3(2) If the tax is a local sales and services tax imposed by
4a county that is not a qualified county, it shall only apply to
5those incorporated areas and the unincorporated area of that
6county in which a majority of those voting in the area on the
7tax favors its imposition.For purposes of the local sales
8and services tax imposed by a county that is not a qualified
9county, all cities contiguous to each other shall be treated
10as part of one incorporated area and the tax would shall be
11imposed in each of those contiguous cities only if the majority
12of those voting in the total area covered by the contiguous
13cities favors its imposition. In the case of a local sales and
14services tax submitted to the registered voters of two or more
15contiguous counties as provided in subsection 4, paragraph “c”,
16all cities contiguous to each other shall be treated as part of
17one incorporated area, even if the corporate boundaries of one
18or more of the cities include areas of more than one county,
19and the tax shall be imposed in each of those contiguous cities
20only if a majority of those voting on the tax in the total area
21covered by the contiguous cities favored its imposition. For
22purposes of the local sales and services tax, a city is not
23contiguous to another city if the only road access between the
24two cities is through another state.
25 Sec. 4. Section 423B.1, Code 2017, is amended by adding the
26following new subsection:
27 NEW SUBSECTION. 3A. For purposes of this chapter,
28“qualified county” means a county with a population in excess
29of four hundred thousand, a county with a population of at
30least one hundred thirty thousand but not more than one hundred
31thirty-one thousand, or a county with a population of at least
32sixty thousand but not more than seventy thousand, according
33to the 2010 federal decennial census. Except for purposes
34of allocating local sales and services tax receipts based
35on the county in which the tax was collected under section
-2-1423B.7, subsection 1, a city shall be deemed to be located in a
2qualified county if a majority of the population of the city,
3according to the 2010 federal decennial census, resides in the
4qualified county.
5 Sec. 5. Section 423B.1, subsections 4 and 5, Code 2017, are
6amended to read as follows:
74. a. (1) A The county board of supervisors shall direct
8within thirty days the county commissioner of elections to
9submit the question of imposition of a local vehicle tax or
10a local sales and services tax to the registered voters of
11the incorporated and unincorporated areas of the county upon
12receipt of a petition, requesting imposition of a local vehicle
13tax or a local sales and services tax, signed by eligible
14electors of the whole county equal in number to five percent of
15the persons in the whole county who voted at the last preceding
16general election. In the case of a local vehicle tax, the The
17 petition requesting imposition shall specify the rate of tax
18and the classes, if any, that are to be exempt. If more than
19one valid petition is received, the earliest received petition
20shall be used.
21(2) The county board of supervisors for a qualified county
22shall direct within thirty days the county commissioner of
23elections to submit the question of imposition of a local
24sales and services tax to the registered voters of a city or
25to the registered voters of the unincorporated area of the
26county upon receipt by the board of supervisors of a petition
27requesting imposition of a local sales and services tax, signed
28by eligible electors of the city or eligible electors of the
29unincorporated area of the county, as applicable, equal in
30number to five percent of the persons in the applicable city
31or unincorporated area of the county who voted at the last
32preceding general election. If more than one valid petition
33is received for a city or for the unincorporated area of the
34county, the earliest received petition shall be used.
35(3) A county board of supervisors for a county that is not
-3-1a qualified county shall direct within thirty days the county
2commissioner of elections to submit the question of imposition
3of a local sales and services tax to the registered voters of
4the incorporated and unincorporated areas of the county upon
5receipt of a petition requesting imposition of a local sales
6and services tax, signed by eligible electors of the whole
7county equal in number to five percent of the persons in the
8whole county who voted at the last preceding general election.
9If more than one valid petition is received, the earliest
10received petition shall be used.
11b. (1) The question of the imposition of a local sales
12and services tax in a qualified county shall be submitted to
13the registered voters of the city or to the registered voters
14of the unincorporated area of the county upon receipt by the
15county commissioner of elections of a motion requesting such
16submission, adopted by the governing body of a city located
17within the county or of the county for the unincorporated area
18of the county. Upon adoption of such motion, the governing
19body of the city or county for the unincorporated area shall
20submit the motion to the county commissioner of elections. The
21county commissioner of elections shall publish notice of the
22ballot proposition concerning the imposition of the local sales
23and services tax. The manner provided under this subparagraph
24for the submission of the question of imposition of a local
25sales and services tax is an alternative to the manner provided
26in paragraph “a”, subparagraph (2).
27(2) The question of the imposition of a local sales and
28services tax in a county that is not a qualified county shall
29be submitted to the registered voters of the incorporated and
30unincorporated areas of the county upon receipt by the county
31commissioner of elections of the motion or motions, requesting
32such submission, adopted by the governing body or bodies of the
33city or cities located within the county or of the county, for
34the unincorporated areas of the county, representing at least
35one half of the population of the county. Upon adoption of
-4-1such motion, the governing body of the city or county, for the
2unincorporated areas, shall submit the motion to the county
3commissioner of elections and in the case of the governing
4body of the city shall notify the board of supervisors of the
5adoption of the motion. The county commissioner of elections
6shall keep a file on all the motions received and, upon
7reaching the population requirements, shall publish notice of
8the ballot proposition concerning the imposition of the local
9sales and services tax. A motion ceases to be valid at the
10time of the holding of the regular election for the election of
11members of the governing body which that adopted the motion.
12The county commissioner of elections shall eliminate from the
13file any motion that ceases to be valid. The manner provided
14under this paragraph subparagraph for the submission of the
15question of imposition of a local sales and services tax
16is an alternative to the manner provided in paragraph “a”,
17subparagraph (3).
18c. Upon receipt of petitions or motions calling for the
19submission of the question of the imposition of a local sales
20and services tax as described in paragraph “a” or “b”, the
21boards of supervisors of two or more contiguous counties in
22which the question is to be submitted may enter into a joint
23agreement providing that for purposes of this chapter, a
24city whose corporate boundaries include areas of more than
25one county shall be treated as part of the county in which a
26majority of the residents of the city reside. In such event,
27the county commissioners of elections from each such county
28shall cooperate in the selection of a single date upon which
29the election shall be held, and for all purposes of this
30chapter relating to the imposition, repeal, change of use,
31or collection of the tax, such a city shall be deemed to be
32part of the county in which a majority of the residents of the
33city reside. A copy of the joint agreement shall be provided
34promptly to the director of revenue.
355. a. The county commissioner of elections shall submit
-5-1the question of imposition of a local option tax at an election
2held on a date specified in section 39.2, subsection 4,
3paragraph “a” or “b”, as applicable. The election shall not be
4held sooner than sixty days after publication of notice of the
5ballot proposition.
6b. The ballot proposition shall specify the type and rate of
7tax and, in the case of a vehicle tax, the classes that will be
8exempt and, in the case of a local sales and services tax, the
9date it will be imposed which date shall not be earlier than
10ninety days following the election. The ballot proposition
11shall also specify the approximate amount of local option tax
12revenues that will be used for property tax relief, subject to
13the requirement of section 423B.7, subsection 7, paragraph “b”,
14 and shall contain a statement as to the specific purpose or
15purposes for which the revenues shall otherwise be expended.
16If the county board of supervisors in a county that is not
17a qualified county or if the board of supervisors or city
18council, as applicable, in a qualified county decides under
19subsection 6 to specify a date on which the local option sales
20and services tax shall automatically be repealed, the date of
21the repeal shall also be specified on the ballot.
22c. The rate of the vehicle tax shall be in increments of one
23dollar per vehicle as set by the petition seeking to impose the
24tax.
25d. The rate of a local sales and services tax shall not be
26more than one percent as set by the governing body.
27e. The state commissioner of elections shall establish by
28rule the form for the ballot proposition which form shall be
29uniform throughout the state.
30 Sec. 6. Section 423B.1, subsection 6, paragraph a,
31subparagraph (1), Code 2017, is amended by striking the
32subparagraph.
33 Sec. 7. Section 423B.1, subsection 6, paragraph a,
34subparagraphs (2) and (3), Code 2017, are amended to read as
35follows:
-6- 1(2) (a) The A local option tax may be repealed or the
2rate of the local vehicle tax increased or decreased or the
3use thereof of a local option tax changed after an election at
4which a majority of those voting on the question of repeal or
5rate or use change favored favors the repeal or rate or use
6change.
7(b) The date on which the repeal, rate, or use change is
8to take effect shall not be earlier than ninety days following
9the election. The election at which the question of repeal
10or rate or use change is offered shall be called and held in
11the same manner and under the same conditions as provided in
12subsections 4 and 5 for the election on the imposition of the
13local option tax. However, in the case of a local sales and
14services tax where the tax has not been imposed countywide, the
15question of repeal or imposition or rate or use change shall
16be voted on only by the registered voters of the areas of the
17county where the tax has been imposed or has not been imposed,
18as appropriate.
19(c) However, the The governing body of the incorporated
20area city or unincorporated area where the local sales and
21services tax is imposed may, upon its own motion, request the
22county commissioner of elections to hold an election in the
23incorporated city or unincorporated area, as appropriate, on
24the question of the change in use of local sales and services
25tax revenues. The election may be held at any time but not
26sooner than sixty days following publication of the ballot
27proposition. If a majority of those voting in the incorporated
28 city or unincorporated area on the change in use favors the
29change, the governing body of that city or area shall change
30the use to which the revenues shall be used. The ballot
31proposition shall list the present use of the revenues, the
32proposed use, and the date after which revenues received will
33be used for the new use.
34(3) When submitting the question of the imposition of a
35local sales and services tax, the county board of supervisors
-7- 1of a county that is not a qualified county or the board of
2supervisors or the governing body of the city, as applicable,
3in a qualified county may direct that the question contain a
4provision for the repeal, without election, of the local sales
5and services tax on a specific date, which date shall be as
6provided in section 423B.6, subsection 1.
7 Sec. 8. Section 423B.1, subsection 7, paragraph b, Code
82017, is amended to read as follows:
9b. Costs of local option tax elections shall be apportioned
10among jurisdictions within the county voting on the question
11at the same election on a pro rata basis in proportion to the
12number of registered voters in each taxing jurisdiction voting
13on the question and the total number of registered voters in
14all of the taxing jurisdictions voting on the question.
15 Sec. 9. Section 423B.1, subsection 8, Code 2017, is amended
16by striking the subsection.
17 Sec. 10. Section 423B.1, subsections 9 and 10, Code 2017,
18are amended to read as follows:
199. a. In a county that has imposed a local option sales
20and services tax that is not a qualified county, the board
21of supervisors shall, notwithstanding any contrary provision
22of this chapter, repeal the local option sales and services
23tax in the unincorporated areas or in an incorporated city
24area in which the tax has been imposed upon adoption of its
25 the board’s own motion for repeal in the unincorporated areas
26or upon receipt of a motion adopted by the governing body of
27that incorporated city area requesting repeal. The board of
28supervisors shall repeal the local option sales and services
29tax effective on the later of the date of the adoption of
30the repeal motion or the earliest date specified in section
31423B.6, subsection 1, following adoption of the motion. For
32purposes of this subsection paragraph, incorporated city area
33includes an incorporated city which is contiguous to another
34incorporated city.
35b. For a qualified county:
-8- 1(1) In a city that has imposed a local sales and services
2tax, the governing body of the city shall, notwithstanding any
3contrary provision of this chapter, repeal the local sales and
4services tax in the city upon adoption of its own motion for
5repeal. The governing body of the city shall repeal the local
6sales and services tax effective on the earliest date specified
7in section 423B.6, subsection 1, following adoption of the
8motion.
9(2) In the unincorporated area of the county where the
10local sales and services tax has been imposed, the board of
11supervisors shall, notwithstanding any contrary provision of
12this chapter, repeal the local sales and services tax in the
13unincorporated area of the county upon adoption of its own
14motion for repeal. The board of supervisors shall repeal the
15local sales and services tax effective on the earliest date
16specified in section 423B.6, subsection 1, following adoption
17of the motion.
1810. Notwithstanding subsection 9 or any other contrary
19provision of this chapter, a local option sales and services
20tax shall not be repealed or reduced in rate if obligations are
21outstanding which are payable as provided in section 423B.9,
22unless funds sufficient to pay the principal, interest, and
23premium, if any, on the outstanding obligations at and prior
24to maturity have been properly set aside and pledged for that
25purpose.
26 Sec. 11. Section 423B.5, subsections 1 and 4, Code 2017, are
27amended to read as follows:
281. A local sales and services tax at the rate of not more
29than one percent may be imposed by a city or county pursuant
30to this chapter shall be imposed on the sales price taxed by
31the state under chapter 423, subchapter II. A local sales
32and services tax shall be imposed on the same basis as the
33state sales and services tax or in the case of the use of
34natural gas, natural gas service, electricity, or electric
35service on the same basis as the state use tax and shall not
-9-1be imposed on the sale of any property or on any service not
2taxed by the state, except the tax shall not be imposed on
3the sales price from the sale of motor fuel or special fuel
4as defined in chapter 452A which is consumed for highway use
5or in watercraft or aircraft if the fuel tax is paid on the
6transaction and a refund has not or will not be allowed, on the
7sales price from the sale of equipment by the state department
8of transportation, or on the sales price from the sale or use
9of natural gas, natural gas service, electricity, or electric
10service in a city or county where the sales price from the sale
11of natural gas or electric energy is subject to a franchise
12fee or user fee during the period the franchise or user fee
13is imposed. A local sales and services tax is applicable
14to transactions within those incorporated and the city or
15 unincorporated areas area of the county where it is imposed and
16shall be collected by all persons required to collect state
17sales taxes. All cities contiguous to each other shall be
18treated as part of one incorporated area and the tax would be
19imposed in each of those contiguous cities only if the majority
20of those voting in the total area covered by the contiguous
21cities favors its imposition. In the case of a local sales and
22services tax submitted to the registered voters of two or more
23contiguous counties as provided in section 423B.1, subsection
244, paragraph “c”, all cities contiguous to each other shall be
25treated as part of one incorporated area, even if the corporate
26boundaries of one or more of the cities include areas of more
27than one county, and the tax shall be imposed in each of those
28contiguous cities only if a majority of those voting on the tax
29in the total area covered by the contiguous cities favored its
30imposition. However, a local sales and services tax is not
31applicable to transactions of a retailer holding a retail sales
32tax permit at a place of business, as defined in section 423.1,
33if the retailer’s place of business is located in part within a
34city or unincorporated area of the county where the tax is not
35imposed.
-10- 14. If a local sales and services tax is imposed by a city or
2 county pursuant to this chapter, a local excise tax at the same
3rate shall be imposed by the city or county on the purchase
4price of natural gas, natural gas service, electricity, or
5electric service subject to tax under chapter 423, subchapter
6III, and not exempted from tax by any provision of chapter
7423, subchapter III. The local excise tax is applicable only
8to the use of natural gas, natural gas service, electricity,
9or electric service within those incorporated cities and
10unincorporated areas of the county where it is imposed
11and, except as otherwise provided in this chapter, shall be
12collected and administered in the same manner as the local
13sales and services tax. For purposes of this chapter, “local
14sales and services tax” shall also include the local excise tax.
15 Sec. 12. Section 423B.6, subsection 1, paragraphs b and c,
16Code 2017, are amended to read as follows:
17b. A local sales and services tax shall be repealed only
18on June 30 or December 31 but not sooner than ninety days
19following the favorable election if one is held. However, a
20local sales and services tax shall not be repealed before the
21tax has been in effect for one year. At least forty days before
22the imposition or repeal of the tax, a the city or county, as
23applicable, shall provide notice of the action by certified
24mail to the director of revenue.
25c. The imposition of or a rate change for a local sales and
26services tax shall not be applied to purchases from a printed
27catalog wherein a purchaser computes the local tax based on
28rates published in the catalog unless a minimum of one hundred
29twenty days’ notice of the imposition or rate change has been
30given to the seller from the catalog and the first day of a
31calendar quarter has occurred on or after the one hundred
32twentieth day.
33 Sec. 13. Section 423B.6, subsection 2, paragraph b, Code
342017, is amended to read as follows:
35b. The ordinance of a governing body of a city or county
-11-1board of supervisors imposing a local sales and services
2tax shall adopt by reference the applicable provisions of
3the appropriate sections of chapter 423. All powers and
4requirements of the director to administer the state sales tax
5law and use tax law are applicable to the administration of
6a local sales and services tax law and the local excise tax,
7including but not limited to the provisions of section 422.25,
8subsection 4, sections 422.30, 422.67, and 422.68, section
9422.69, subsection 1, sections 422.70 through 422.75, section
10423.14, subsection 1 and subsection 2, paragraphs “b” through
11“e”, and sections 423.15, 423.23, 423.24, 423.25, 423.31
12through 423.35, 423.37 through 423.42, 423.46, and 423.47.
13Local officials shall confer with the director of revenue for
14assistance in drafting the ordinance imposing a local sales and
15services tax. A certified copy of the ordinance shall be filed
16with the director as soon as possible after passage.
17 Sec. 14. Section 423B.6, subsection 3, paragraph b, Code
182017, is amended to read as follows:
19b. All local tax moneys and interest and penalties received
20or refunded one hundred eighty days or more after the date
21on which the city or county repeals its the local sales and
22services tax shall be deposited in or withdrawn from the state
23general fund.
24 Sec. 15. Section 423B.7, subsection 1, Code 2017, is amended
25to read as follows:
261. a. Except as provided in paragraph paragraphs “b” and
27“c”, the director shall credit the local sales and services
28tax receipts and interest and penalties from a county-imposed
29tax to the county’s account in the local sales and services
30tax fund and from a city-imposed tax under section 423B.1,
31subsection 2, to the city’s account in the local sales
32and services tax fund for the county in which the tax was
33collected. If the director is unable to determine from which
34county any of the receipts were collected, those receipts shall
35be allocated among the possible counties based on allocation
-12-1rules adopted by the director.
2b. Notwithstanding paragraph “a”, the The director shall
3credit the designated amount of the increase in local sales
4and services tax receipts, as computed in section 423B.10,
5collected in an urban renewal area of an eligible city that has
6adopted an ordinance pursuant to section 423B.10, subsection
72, into a special city account in the local sales and services
8tax fund.
9c. The director shall credit the local sales and services
10tax receipts and interest and penalties from a city-imposed tax
11under section 423B.1, subsection 2, to the city’s account in
12the local sales and services tax fund.
13 Sec. 16. Section 423B.7, subsection 7, Code 2017, is amended
14to read as follows:
157. a. Local Subject to the requirement of paragraph “b”,
16local sales and services tax moneys received by a city or
17county may be expended for any lawful purpose of the city or
18county.
19b. Each city located in a qualified county and each
20qualified county for the unicorporated area for which
21the imposition of the local sales and services tax in the
22incorporated area or unincorporated area was approved at
23election on or after the effective date of this Act shall use
24not less than fifty percent of the moneys received for property
25tax relief.
26 Sec. 17. Section 423B.8, subsection 1, paragraph a, Code
272017, is amended to read as follows:
28a. The goods, wares, or merchandise are incorporated into
29an improvement to real estate in fulfillment of a written
30contract fully executed prior to the date of the imposition or
31increase in rate of a local sales and services tax under this
32chapter. The refund shall not apply to equipment transferred
33in fulfillment of a mixed construction contract.
34 Sec. 18. Section 423B.10, subsection 1, paragraph b, Code
352017, is amended to read as follows:
-13- 1b. “Eligible city” means a city in which a local sales and
2services tax imposed by the city or county applies or a city
3described in section 423B.1, subsection 2, paragraph “a”, and in
4which an urban renewal area has been designated.
5 Sec. 19. IMPLEMENTATION. This Act shall not affect the
6imposition of local option taxes in effect on the effective
7date of this Act and such taxes shall continue to be imposed
8until their repeal pursuant to chapter 423B. The law regarding
9repeal in effect at the time of the repeal governs the repeal
10of the local option taxes.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14This bill relates to the approval and imposition of the
15local option sales and services tax. Current Code chapter 423B
16authorizes the imposition of local option taxes, including
17a local option sales and services tax. Currently, such a
18proposed tax is only presented to the voters of a whole county
19upon the filing of a petition signed by eligible electors of
20the county equal in number to 5 percent of the persons in
21the county who voted at the last preceding general election
22or upon receipt by the county commissioner of elections of
23motions requesting such submission, adopted by the governing
24bodies of the cities located within the county or the governing
25body of the county for the unincorporated area of the county,
26representing at least one-half of the population of the county.
27The bill amends the methods of seeking presentment of the
28local option sales and services tax to the voters of certain
29qualified counties by allowing the eligible electors of
30individual cities and the unincorporated area of a county to
31file a petition for an election to be held in the petitioning
32jurisdiction if such petition is signed by eligible electors
33of the city or the unincorporated area of the county, as
34applicable, equal in number to 5 percent of the persons in
35the applicable city or unincorporated area of the county who
-14-1voted at the last preceding general election. The bill defines
2“qualified county” to mean a county with a population in excess
3of 400,000, a county with a population of at least 130,000 but
4not more than 131,000, or a county with a population of at
5least 60,000 but not more than 70,000, according to the 2010
6federal decennial census. For those qualified counties, the
7bill also removes the requirement that in order to have the
8local sales and services tax presented to the voters, motions
9must be approved by cities or the county for the unincorporated
10area, representing at least one-half of the county’s
11population. Instead, the bill allows individual cities or the
12county for the unincorporated area within a qualified county
13to approve a motion for an election on the local sales and
14services tax to be held in only that jurisdiction.
15The bill specifies that except for purposes of allocating
16local sales and services tax receipts based on the county in
17which the tax was collected, a city shall be deemed to be
18located in a qualified county if a majority of the population
19of the city, according to the 2010 federal decennial census,
20resides in the qualified county.
21The bill provides that in a qualified county a city or the
22board of supervisors for the unincorporated area of a county
23may repeal the local sales and services tax in the city upon
24adoption of its own motion for repeal.
25For those counties that are not qualified counties, the
26methods of seeking presentment of the local option sales and
27services tax to the voters and the methods for repealing such
28a tax remain the same as required under current Code chapter
29423B.
30The bill provides that each city or county for which the
31imposition of the local sales and services tax was approved at
32election on or after the effective date of the bill shall use
33not less than 50 percent of the moneys received for property
34tax relief.
35The bill strikes special provisions related to the approval
-15-1and imposition of a local sales and services tax in a city that
2is located in two or more contiguous counties.
3The bill provides that a local sales and services tax is
4not applicable to transactions of a retailer holding a retail
5sales tax permit at a place of business if the retailer’s place
6of business is located in part within a city or unincorporated
7area of the county where the tax is not imposed.
8Current Code chapter 423B authorizes the imposition of a
9local sales and services tax at a rate of not more than 1
10percent. The bill requires a local sales and services tax, if
11imposed, to be 1 percent.
12The bill provides that the imposition of local option
13taxes in effect on the effective date of the bill shall not
14be affected by the bill, and such taxes shall continue to
15be imposed until their repeal pursuant to Code chapter 423B.
16 The law in effect regarding repeal at the time of the repeal
17governs the repeal of the local option taxes.
-16-md/sc