Bill Text: IA HF213 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to local government revenues by authorizing cities or counties to impose a local entertainment surcharge, and making an appropriation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-02-08 - Subcommittee recommends indefinite postponement. Vote Total: 1-1 [HF213 Detail]
Download: Iowa-2021-HF213-Introduced.html
House
File
213
-
Introduced
HOUSE
FILE
213
BY
LOHSE
A
BILL
FOR
An
Act
relating
to
local
government
revenues
by
authorizing
1
cities
or
counties
to
impose
a
local
entertainment
2
surcharge,
and
making
an
appropriation.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
423H.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Alcoholic
beverage”
means
the
same
as
defined
in
section
4
123.3.
5
2.
“Cultural
or
entertainment
establishment”
means
a
sporting
6
or
concert
event
venue,
performing
arts
theater,
movie
theater,
7
museum,
convention
hall,
or
enclosed
shopping
mall.
8
3.
“Department”
means
the
department
of
revenue.
9
4.
“Director”
means
the
director
of
the
department
of
10
revenue.
11
5.
“District”
means
either
of
the
following:
12
a.
An
area
within
a
municipality
that
is
established
as
a
13
local
entertainment
district
pursuant
to
section
423H.2.
14
b.
An
area
within
two
or
more
municipalities
pursuant
to
15
an
agreement
under
chapter
28E
that
is
established
as
a
local
16
entertainment
district
pursuant
to
section
423H.2.
17
6.
“Entertainment
tickets”
means
all
tickets
or
admissions
18
subject
to
taxation
pursuant
to
section
423.2,
subsection
3.
19
7.
“Food”
means
the
same
as
defined
in
section
137F.1.
20
8.
“Food
establishment”
means
a
“food
establishment”
licensed
21
pursuant
to
chapter
137F,
at
which
food
is
served
or
sold
at
22
retail.
“Food
establishment”
also
includes
a
“temporary
food
23
establishment”
defined
in
chapter
137F.1.
24
9.
“Governing
body”
means
the
county
board
of
supervisors,
25
city
council,
or
other
body
in
which
the
legislative
powers
of
26
the
municipality
are
vested.
27
10.
“Licensed
premises”
means
the
same
as
defined
in
section
28
123.3.
29
11.
“Liquor
establishment”
means
a
licensed
premises
in
or
30
at
which
alcoholic
beverages
are
sold
at
retail.
31
12.
“Lodging”
means
the
same
as
defined
in
section
423A.2.
32
“Lodging”
does
not
include
lodging
exempted
from
tax
pursuant
33
to
section
423A.5.
34
13.
“Municipality”
means
any
of
the
following:
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a.
A
county.
1
b.
An
incorporated
city.
2
c.
A
joint
board
or
other
legal
entity
established
or
3
designated
in
an
agreement
between
two
or
more
contiguous
4
municipalities
identified
in
paragraph
“a”
or
“b”
pursuant
to
5
chapter
28E.
6
14.
“Retail
sale”
means
the
same
as
defined
in
section
7
423.1.
8
15.
“Surcharge”
means
a
local
entertainment
surcharge
9
imposed
pursuant
to
this
chapter.
10
Sec.
2.
NEW
SECTION
.
423H.2
Local
entertainment
district
11
establishment
——
approval.
12
A
municipality
may
establish
a
district
for
purposes
of
13
imposing
a
surcharge.
To
be
established
as
a
district,
a
14
proposed
district
shall
meet
the
following
requirements:
15
1.
The
combined
attendance
at
cultural
or
entertainment
16
establishments,
food
establishments,
and
liquor
establishments
17
within
the
proposed
district
exceeded
five
hundred
thousand
18
persons
during
the
previous
calendar
year,
or
the
attendance
19
forecast
at
such
establishments
is
reasonably
expected
to
20
exceed
five
hundred
thousand
persons
per
calendar
year
within
21
two
years
of
the
establishment
of
the
district.
22
2.
The
proposed
district
consists
of
contiguous
parcels
and
23
does
not
exceed
seventy-five
acres
in
total.
24
3.
For
a
municipality
that
is
a
city,
the
proposed
district
25
does
not
include
the
entire
incorporated
area
of
the
city.
26
4.
The
proposed
district
is
not
located
in
whole
or
in
part
27
within
another
district
established
under
this
chapter.
28
Sec.
3.
NEW
SECTION
.
423H.3
Local
entertainment
surcharge
29
——
approval.
30
1.
Prior
to
adopting
the
ordinance
or
resolution
under
31
subsection
2,
a
proposed
district
plan
shall
be
developed
by
32
the
governing
body
of
the
municipality.
The
proposed
district
33
plan
shall
state
the
governing
body’s
intent
to
establish
a
34
district
and
a
legal
description
of
the
real
estate
forming
the
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boundaries
of
the
area
to
be
included
in
the
proposed
district
1
along
with
a
map
depicting
the
existing
parcels
of
real
estate
2
located
in
the
proposed
district.
3
2.
After
developing
a
proposed
district
plan
and
stating
4
the
governing
body’s
intent
to
establish
such
a
district
under
5
subsection
1,
the
governing
body
of
a
municipality
may
impose
a
6
surcharge
pursuant
to
this
chapter
by
adopting
an
ordinance,
or
7
in
the
case
of
a
municipality
under
section
423H.1,
subsection
8
13,
paragraph
“c”
,
a
resolution.
The
surcharge
shall
be
imposed
9
at
a
rate
not
to
exceed
three
percent
upon
the
following
within
10
the
district:
11
a.
The
retail
sales
price
of
food
or
alcoholic
beverages
12
sold
at
a
cultural
or
entertainment
establishment,
food
13
establishment,
or
liquor
establishment.
14
b.
The
sales
price
of
all
sales
of
entertainment
tickets
15
sold
at
a
cultural
or
entertainment
establishment.
16
c.
The
sales
price
for
the
renting
of
any
lodging.
17
3.
The
surcharge
shall
be
in
addition
to
the
state
sales
18
tax
imposed
pursuant
to
chapter
423,
subchapter
II,
the
19
state-imposed
and
locally
imposed
hotel
and
motel
tax
pursuant
20
to
chapter
423A,
and
the
local
sales
and
services
tax
imposed
21
pursuant
to
chapter
423B.
22
4.
a.
Within
ten
days
of
the
passage
of
an
ordinance
23
or
resolution
imposing
a
surcharge,
the
county
auditor
of
24
the
county
with
the
largest
parcel
in
the
district
shall
25
give
written
notice
to
the
director
by
sending
a
copy
of
the
26
district
plan
to
the
director.
27
b.
A
surcharge
shall
be
imposed
either
January
1
or
July
28
1
following
the
notification
of
the
director
but
not
sooner
29
than
ninety
days
following
the
passage
of
the
ordinance
or
30
resolution
imposing
the
surcharge
and
not
sooner
than
sixty
31
days
following
notice
to
sellers,
as
defined
in
section
423.1.
32
c.
(1)
A
surcharge
shall
be
repealed
only
on
June
30
or
33
December
31
but
not
sooner
than
ninety
days
following
repeal
of
34
the
ordinance
or
resolution.
At
least
forty
days
before
the
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repeal
of
the
surcharge,
a
municipality
shall
provide
notice
of
1
the
action
by
certified
mail
to
the
director
of
revenue.
2
(2)
The
terms
of
any
chapter
28E
agreement
shall
govern
the
3
repeal
of
the
surcharge
in
the
case
of
a
municipality
under
4
section
423H.1,
subsection
13,
paragraph
“c”
.
5
5.
a.
(1)
If
within
thirty
days
after
adoption
of
the
6
ordinance
that
imposes
a
surcharge,
or
if
after
the
ordinance
7
has
been
in
effect
for
one
year,
the
board
of
supervisors
of
a
8
municipality
receives
a
valid
petition
as
provided
in
section
9
331.306
requesting
that
the
question
of
whether
to
repeal
10
the
ordinance
be
submitted
to
the
registered
voters
of
the
11
unincorporated
area
of
the
county,
the
board
shall
direct
the
12
county
commissioner
of
elections
to
submit
to
the
voters
at
an
13
election
held
on
a
date
specified
in
section
39.2,
subsection
14
4,
paragraph
“a”
,
the
question
of
whether
the
ordinance
that
15
imposes
the
surcharge
shall
be
repealed.
16
(2)
If
within
thirty
days
after
adoption
of
the
ordinance
17
that
imposes
a
surcharge,
or
if
after
the
ordinance
has
been
18
in
effect
for
one
year,
the
city
council
of
a
municipality
19
receives
a
valid
petition
as
provided
in
section
362.4
20
requesting
that
the
question
of
whether
to
repeal
the
ordinance
21
be
submitted
to
the
registered
voters
of
the
city,
the
city
22
council
shall
direct
the
county
commissioner
of
elections
to
23
submit
to
the
voters
at
an
election
held
on
a
date
specified
24
in
section
39.2,
subsection
4,
paragraph
“b”
,
the
question
25
of
whether
the
ordinance
that
imposes
the
surcharge
shall
be
26
repealed.
27
(3)
For
a
municipality
under
section
423H.1,
subsection
13,
28
paragraph
“c”
,
the
terms
of
any
chapter
28E
agreement
shall
29
govern
the
repeal
of
the
surcharge,
but
shall,
at
a
minimum,
30
allow
for
a
petition
under
section
331.306
or
362.4
requesting
31
that
a
question
to
repeal
the
resolution
be
submitted
to
the
32
voters
after
the
resolution
has
been
in
effect
for
one
year.
33
b.
If
a
majority
of
the
total
votes
cast
for
and
against
the
34
proposition
favors
repeal
of
the
surcharge,
or
in
the
case
of
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a
municipality
under
section
423H.1,
subsection
13,
paragraph
1
“c”
,
a
majority
of
at
least
one
of
the
municipalities
favors
2
repeal,
the
ordinance
or
resolution
shall
be
repealed,
and
3
collection
of
the
surcharge
shall
terminate
on
either
June
30
4
or
December
31
following
the
election,
whichever
is
sooner.
5
Sec.
4.
NEW
SECTION
.
423H.4
Administration.
6
1.
The
director
shall
administer
the
surcharge
imposed
7
pursuant
to
this
chapter
as
nearly
as
possible
in
conjunction
8
with
the
administration
of
state
sales
tax
laws.
The
director
9
shall
provide
appropriate
forms,
or
provide
space
on
the
10
regular
state
tax
forms,
for
reporting
surcharge
liability.
11
2.
a.
Section
422.25,
subsection
4,
sections
422.30,
12
422.67,
and
422.68,
section
422.69,
subsection
1,
sections
13
422.70,
422.71,
422.72,
422.74,
and
422.75,
section
423.14,
14
subsection
1,
and
sections
423.23,
423.24,
423.25,
423.31,
15
423.33,
423.35,
423.37
through
423.42,
and
423.47,
consistent
16
with
the
provisions
of
this
chapter,
apply
with
respect
to
the
17
surcharge
authorized
under
this
chapter,
in
the
same
manner
and
18
with
the
same
effect
as
retail
sales
taxes
within
the
meaning
19
of
those
statutes.
The
director
may
require
all
persons
20
who
are
engaged
in
the
business
of
deriving
any
sales
price
21
subject
to
a
surcharge
under
this
chapter
to
register
with
22
the
department.
All
surcharges
collected
under
this
chapter
23
are
deemed
to
be
held
in
trust
for
the
state
of
Iowa
and
the
24
local
jurisdictions
imposing
the
surcharges.
Local
officials
25
shall
confer
with
the
director
of
revenue
for
assistance
in
26
drafting
the
ordinance
or
resolution
imposing
the
surcharge.
A
27
certified
copy
of
the
ordinance
or
resolution
shall
be
filed
28
with
the
director
as
soon
as
possible
after
passage.
29
b.
Frequency
of
deposits
and
quarterly
reports
of
the
30
surcharge
with
the
department
of
revenue
are
governed
by
the
31
provisions
in
section
423.31.
Local
surcharge
collections
32
shall
not
be
included
in
computation
of
the
total
tax
to
33
determine
frequency
of
filing
under
section
423.31.
34
c.
The
director
shall
apply
a
boundary
change
of
a
city
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imposing
or
collecting
the
surcharge
to
the
imposition
or
1
collection
of
that
surcharge
only
on
the
first
day
of
a
2
calendar
quarter
which
occurs
sixty
days
or
more
after
the
3
director
has
given
notice
of
the
boundary
change
to
sellers.
4
3.
a.
The
director,
in
consultation
with
local
officials,
5
shall
collect
and
account
for
the
surcharge.
The
director
6
shall
certify
each
quarter
the
amount
of
the
surcharge
7
receipts
and
any
interest
and
penalties
to
be
credited
to
8
the
municipality
account
in
the
state
surcharge
revenue
fund
9
established
in
section
423H.5.
Local
authorities
shall
not
10
require
any
permit
not
required
by
the
director
of
revenue.
11
b.
All
surcharge
revenues
and
interest
and
penalties
12
received
or
refunded
one
hundred
eighty
days
or
more
after
the
13
date
on
which
the
municipality
repeals
the
surcharge,
shall
be
14
deposited
in
or
withdrawn
from
the
general
fund
of
the
state.
15
4.
Each
municipality
that
has
established
a
district
16
under
this
chapter
shall
assist
the
department
in
identifying
17
new
establishments
required
to
impose
the
surcharge
in
the
18
district.
This
process
shall
be
ongoing
until
the
surcharge
19
is
repealed.
20
Sec.
5.
NEW
SECTION
.
423H.5
State
surcharge
revenue
fund.
21
1.
A
state
surcharge
revenue
fund
is
established
in
the
22
state
treasury
under
the
control
of
the
department
consisting
23
of
the
surcharge
revenues
collected
within
each
district
and
24
deposited
in
the
fund
pursuant
to
section
423H.4.
Revenues
25
deposited
in
the
fund
are
appropriated
to
the
department
for
26
the
purposes
of
this
section.
27
2.
A
district
account
is
created
within
the
fund
for
each
28
municipality
creating
a
district
under
this
chapter.
29
3.
The
department
shall
deposit
the
revenues
described
in
30
subsection
1
that
were
collected
in
a
quarter
beginning
on
or
31
after
the
district’s
commencement
date
into
the
appropriate
32
district
account
in
the
fund.
33
4.
All
revenues
in
each
district
account
within
the
34
fund
shall
be
remitted
quarterly
by
the
department
to
the
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municipality
that
established
the
district
for
deposit
in
1
the
general
fund
of
the
municipality.
In
the
case
of
a
2
municipality
described
in
section
423H.1,
subsection
13,
3
paragraph
“c”
,
revenues
shall
be
remitted
to
the
municipalities
4
that
are
parties
to
the
chapter
28E
agreement
in
such
5
proportions
as
described
in
the
chapter
28E
agreement.
6
Sec.
6.
NEW
SECTION
.
423H.6
Payment
to
municipality
——
use
7
of
revenues.
8
1.
Upon
the
remittance
of
the
revenues
from
the
state
9
revenue
surcharge
fund
to
the
municipality
under
section
10
423H.5,
subsection
4,
the
revenues
shall
be
deposited
into
the
11
general
fund
of
the
municipality.
12
2.
Surcharge
revenues
deposited
into
the
general
fund
of
the
13
municipality
shall
be
used
as
follows,
as
applicable:
14
a.
For
deposit
into
the
debt
service
fund
in
section
331.430
15
or
384.4.
16
b.
For
deposit
into
the
emergency
services
fund
in
section
17
331.424C
or
emergency
fund
in
section
384.8.
18
c.
For
deposit
into
the
capital
improvements
fund
in
section
19
384.7.
20
d.
For
the
purposes
described
in
section
384.3A,
subsection
21
3,
paragraph
“b”
,
“c”
,
“e”
,
“f”
,
or
“g”
.
22
Sec.
7.
NEW
SECTION
.
423H.7
Rules.
23
The
department
shall
adopt
rules
pursuant
to
chapter
17A
to
24
administer
this
chapter.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
local
government
revenues
by
29
authorizing
cities
or
counties
to
impose
a
local
entertainment
30
surcharge,
and
makes
an
appropriation.
31
The
bill
authorizes
a
city,
county,
or
an
area
within
two
or
32
more
municipalities
pursuant
to
a
Code
chapter
28E
agreement
33
(municipality)
to
establish
a
local
entertainment
district
34
(district)
by
ordinance
or,
in
the
case
of
a
Code
chapter
28E
35
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agreement
by
resolution,
for
the
purpose
of
imposing
a
local
1
entertainment
surcharge
(surcharge).
Under
the
bill,
to
be
2
established
as
a
district,
the
proposed
area
shall
meet
all
3
of
the
following
requirements:
the
combined
attendance
at
4
cultural
or
entertainment
establishments,
food
establishments,
5
and
liquor
establishments
within
the
proposed
district
exceeded
6
500,000
persons
during
the
previous
calendar
year,
or
the
7
expected
attendance
forecast
at
such
establishments
is
expected
8
to
exceed
500,000
persons
per
calendar
year
within
two
years;
9
the
proposed
area
consists
of
contiguous
parcels
and
does
not
10
exceed
75
acres;
the
proposed
area
does
not
include
the
entire
11
incorporated
area
of
the
city;
and
the
proposed
area
is
not
12
located
in
whole
or
in
part
within
another
district.
13
The
bill
defines
“cultural
or
entertainment
establishment”
14
to
mean
a
sporting
or
concert
event
venue,
performing
arts
15
theater,
movie
theater,
museum,
convention
hall,
or
enclosed
16
shopping
mall.
The
bill
defines
“food
establishment”
to
mean
a
17
“food
establishment”
licensed
pursuant
to
Code
chapter
137F,
at
18
which
food
is
served
or
sold
at
retail.
“Food
establishment”
19
also
includes
a
“temporary
food
establishment”
defined
in
Code
20
section
137F.1.
The
bill
defines
“liquor
establishment”
to
21
mean
a
licensed
premises
in
or
at
which
alcoholic
beverages
are
22
sold
at
retail.
23
If
the
governing
body
of
a
municipality
imposes
a
surcharge
24
pursuant
to
the
bill,
the
surcharge
shall
be
at
a
rate
not
to
25
exceed
3
percent,
which
shall
be
imposed
upon
the
following
26
within
the
district:
the
retail
sales
price
of
food
or
27
alcoholic
beverages
sold
at
a
cultural
or
entertainment
28
establishment,
food
establishment,
or
liquor
establishment;
the
29
sales
price
of
all
sales
of
entertainment
tickets
sold
at
a
30
cultural
or
entertainment
establishment;
or
the
sales
price
for
31
the
renting
of
any
lodging.
32
The
bill
defines
“entertainment
tickets”
to
mean
all
tickets
33
or
admissions
subject
to
taxation
pursuant
to
Code
section
34
423.2(3).
The
bill
defines
“lodging”
to
mean
the
same
as
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defined
in
Code
section
432A.2.
However,
“lodging”
does
not
1
include
lodging
exempted
from
tax
pursuant
to
Code
section
2
423A.5.
3
The
bill
specifies
that
the
surcharge
shall
be
in
addition
4
to
the
state
sales
tax
imposed
pursuant
to
Code
chapter
423,
5
subchapter
II,
the
state-imposed
and
locally
imposed
hotel
and
6
motel
tax
pursuant
to
Code
chapter
423A,
or
the
local
sales
and
7
services
tax
imposed
pursuant
to
Code
chapter
423B.
8
The
bill
establishes
a
process
to
adopt
or
repeal
the
9
surcharge.
A
surcharge
shall
be
imposed
either
on
January
1
10
or
July
1
following
notification
of
the
director
of
revenue
11
but
not
sooner
than
90
days
following
the
passage
of
the
12
ordinance
or
resolution
imposing
the
rate
of
the
surcharge
and
13
not
sooner
than
60
days
following
notice
to
the
sellers
in
the
14
local
entertainment
district.
For
a
surcharge
adopted
by
a
15
resolution,
the
Code
chapter
28E
agreement
shall
govern
the
16
repeal
of
the
surcharge.
A
surcharge
adopted
by
resolution
17
and
governed
by
a
Code
chapter
28E
agreement
may
be
repealed
18
upon
the
majority
vote
of
persons
in
one
of
the
municipalities
19
after
the
resolution
has
been
in
effect
for
one
year.
For
a
20
surcharge
adopted
by
ordinance,
a
surcharge
shall
be
repealed
21
only
on
June
30
or
December
31
but
no
sooner
than
90
days
22
following
the
repeal
of
the
ordinance.
A
surcharge
adopted
by
23
ordinance
may
also
be
repealed
by
petition
upon
the
majority
24
vote
of
persons
in
the
municipality
beginning
30
days
after
25
adoption
of
the
ordinance.
26
The
bill
specifies
the
director
of
the
department
of
27
revenue
shall
administer
the
surcharge
as
nearly
as
possible
28
in
conjunction
with
the
administration
of
the
state
sales
tax.
29
The
bill
specifies
that
numerous
administrative
and
enforcement
30
laws
relating
to
the
sales
tax
apply
to
surcharges
imposed
31
under
the
bill.
The
bill
requires
each
municipality
to
assist
32
the
department
in
identifying
new
establishments
required
to
33
impose
the
surcharge
in
the
district.
34
The
bill
creates
a
state
surcharge
revenue
fund
in
the
35
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state
treasury
under
the
control
of
the
department
of
revenue
1
consisting
of
surcharge
revenues
collected
within
each
2
local
entertainment
district.
The
bill
creates
a
local
3
entertainment
district
account
for
each
municipality
creating
a
4
district.
The
bill
requires
the
revenues
be
deposited
into
the
5
appropriate
district
account.
6
All
revenues
in
each
district
account
within
the
state
7
surcharge
revenue
fund
shall
be
remitted
quarterly
by
8
the
department
to
the
municipality
or
municipalities
that
9
established
the
district
for
deposit
in
the
general
fund
of
10
the
municipality.
Surcharge
revenues
deposited
into
the
11
general
fund
of
the
municipality
shall
be
deposited
in
the
12
following
funds,
as
applicable:
the
debt
service
fund
in
13
Code
section
331.430
or
384.4,
the
emergency
services
fund
in
14
Code
section
331.424C
or
the
emergency
fund
in
Code
section
15
384.8,
or
the
capital
improvements
fund
in
Code
section
384.7.
16
If
the
surcharge
revenues
are
not
deposited
in
any
of
the
17
above-mentioned
funds,
the
surcharge
revenues
shall
be
used
for
18
any
of
the
purposes
described
under
Code
section
384.3A(3)(b),
19
(c),
(e),
(f),
or
(g).
20
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