Bill Text: IA HF38 | 2025-2026 | 91st General Assembly | Introduced
Bill Title: A bill for an act authorizing cities to establish self-supported entertainment areas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-11 - Committee vote: Yeas, 16. Nays, 4. H.J. 298. [HF38 Detail]
Download: Iowa-2025-HF38-Introduced.html
House
File
38
-
Introduced
HOUSE
FILE
38
BY
LOHSE
A
BILL
FOR
An
Act
authorizing
cities
to
establish
self-supported
1
entertainment
areas.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
386A.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
requires
2
otherwise:
3
1.
“Alcoholic
beverage”
means
the
same
as
defined
in
section
4
123.3.
5
2.
“Council”
means
the
governing
body
of
a
city.
6
3.
“Cultural
or
entertainment
establishment”
means
a
sporting
7
or
concert
event
venue,
performing
arts
theater,
movie
theater,
8
museum,
convention
hall,
or
enclosed
shopping
mall.
9
4.
“Department”
means
the
department
of
revenue.
10
5.
“Director”
means
the
director
of
the
department
of
11
revenue.
12
6.
“Entertainment
area”
or
“area”
means
an
area
designated
13
by
ordinance
under
this
chapter
and
the
cultural
or
14
entertainment
establishments,
food
establishments,
liquor
15
establishments,
and
lodging
providers
therein
that
are
subject
16
to
the
entertainment
surcharge
in
accordance
with
section
17
386A.3.
18
7.
“Entertainment
tickets”
means
all
tickets
or
admissions
19
subject
to
taxation
pursuant
to
section
423.2,
subsection
3.
20
8.
“Food”
means
the
same
as
defined
in
section
137F.1.
21
9.
“Food
establishment”
means
a
food
establishment
licensed
22
pursuant
to
chapter
137F,
at
which
food
is
served
or
sold
at
23
retail.
“Food
establishment”
also
includes
a
temporary
food
24
establishment
defined
in
section
137F.1.
25
10.
“Licensed
premises”
means
the
same
as
defined
in
section
26
123.3.
27
11.
“Liquor
establishment”
means
a
licensed
premises
in
or
28
at
which
alcoholic
beverages
are
sold
at
retail.
29
12.
“Lodging”
means
the
same
as
defined
in
section
423A.2.
30
“Lodging”
does
not
include
lodging
exempted
from
tax
pursuant
31
to
section
423A.5.
32
13.
“Lodging
provider”
means
the
same
as
defined
in
section
33
423A.2.
34
14.
“Property
owner”
or
“owner”
means
the
owner
of
property,
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as
shown
by
the
transfer
books
in
the
office
of
the
county
1
auditor
of
the
county
in
which
the
property
is
located.
2
15.
“Retail
sale”
means
the
same
as
defined
in
section
3
423.1.
4
16.
“Surcharge”
means
an
entertainment
surcharge
imposed
5
pursuant
to
this
chapter.
6
Sec.
2.
NEW
SECTION
.
386A.2
Authorization.
7
A
city
that
proposes
to
create
an
entertainment
area
and
8
impose
an
entertainment
surcharge
must
do
so
in
accordance
with
9
the
provisions
of
this
chapter.
10
Sec.
3.
NEW
SECTION
.
386A.3
Establishment
of
an
11
entertainment
area
——
entertainment
surcharge
——
use
of
revenues.
12
1.
An
entertainment
area
may
be
created
by
ordinance
of
the
13
council
in
accordance
with
the
provisions
of
this
section.
A
14
proposed
entertainment
area
shall
meet
all
of
the
following
15
requirements:
16
a.
The
combined
attendance
at
cultural
or
entertainment
17
establishments,
food
establishments,
liquor
establishments,
18
and
lodging
providers
within
the
proposed
entertainment
area
19
is
reasonably
expected
to
exceed
two
hundred
fifty
thousand
20
persons
per
calendar
year
within
two
years
of
the
establishment
21
of
the
entertainment
area.
22
b.
The
proposed
entertainment
area
consists
of
contiguous
23
parcels
wholly
within
the
boundaries
of
the
city
and
does
not
24
exceed
seventy-five
acres
in
total.
25
c.
The
proposed
entertainment
area
does
not
include
the
26
entire
incorporated
area
of
the
city.
27
d.
The
proposed
entertainment
area
consists
only
of
28
properties
zoned
for
commercial
uses
or
properties
within
a
29
duly
designated
historic
district,
and
at
least
seventy-five
30
percent
of
the
properties
must
be
cultural
or
entertainment
31
establishments,
food
establishments,
liquor
establishments,
or
32
lodging
providers.
33
e.
The
proposed
entertainment
area
must
be
comprised
of
34
property
related
in
some
manner,
including
but
not
limited
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to
present
or
potential
use,
physical
location,
condition,
1
relationship
to
the
area,
or
relationship
to
present
or
2
potential
commercial
or
other
activity
in
the
area,
so
as
3
to
be
benefited
in
any
manner,
including
but
not
limited
to
4
a
benefit
from
present
or
potential
use
or
enjoyment
of
the
5
property,
by
the
condition,
development,
or
maintenance
of
6
the
area
or
of
any
improvement
or
services
provided
to
the
7
area
or
be
comprised
of
property
the
owners
of
which
have
a
8
present
or
potential
benefit
from
the
condition,
development,
9
or
maintenance
of
the
area
or
of
any
improvement
or
services
10
provided
to
the
area.
11
f.
The
entertainment
area
shall
be
given
a
descriptive
name
12
containing
the
words
“entertainment
area”.
13
2.
The
council
shall
initiate
proceedings
for
the
adoption
14
of
an
ordinance
under
subsection
6
upon
the
filing
of
a
15
petition
containing
all
of
the
following:
16
a.
The
signatures
of
at
least
twenty-five
percent
of
all
17
owners
of
property
within
the
proposed
entertainment
area.
18
b.
A
description
of
the
boundaries
of
the
proposed
19
entertainment
area,
or
a
consolidated
description
of
the
20
property
within
the
proposed
area,
along
with
a
map
depicting
21
the
existing
parcels
of
real
estate
located
in
the
proposed
22
entertainment
area.
23
c.
The
name
of
the
proposed
entertainment
area.
24
d.
Subject
to
the
limitations
of
subsection
4,
paragraph
25
“e”
,
a
statement
of
the
maximum
surcharge
rate
that
may
be
26
imposed
upon
retail
sales
within
the
entertainment
area.
27
e.
The
purpose
of
the
establishment
of
the
entertainment
28
area,
which
may
be
stated
generally,
or
in
terms
of
the
29
relationship
of
the
property
within
the
entertainment
30
area
or
the
interests
of
the
owners
of
property
within
the
31
entertainment
area,
or
in
terms
of
the
specific
or
general
32
categories
of
improvements
proposed
to
be
developed
for
the
33
purposes
of
the
entertainment
area,
or
in
terms
of
the
services
34
to
be
provided
within
the
entertainment
area
and
supported
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from
the
revenues
of
the
surcharge,
or
a
combination
of
such
1
purposes.
2
f.
A
statement
of
the
specified
length
of
time
the
surcharge
3
shall
be
imposed
for
the
purposes
of
the
entertainment
area,
4
along
with
any
option
to
renew
the
surcharge.
5
3.
Upon
receiving
a
valid
petition
for
establishment
of
6
an
entertainment
area,
the
council
shall
set
a
time
and
place
7
for
a
public
hearing
on
the
establishment
of
the
entertainment
8
area,
and
shall
publish
notice
of
the
public
hearing
as
9
provided
in
section
362.3,
and
the
clerk
shall
send
a
copy
of
10
the
notice
by
certified
mail
not
less
than
fifteen
days
before
11
the
hearing
to
each
owner
of
property
within
the
proposed
12
entertainment
area
at
the
owner’s
address
as
shown
by
the
13
records
of
the
county
auditor.
14
4.
In
addition
to
the
time
and
place
of
the
public
hearing
15
on
the
petition,
the
notice
must
state
all
of
the
following:
16
a.
That
a
petition
has
been
filed
with
the
council
asking
17
that
an
entertainment
area
be
established.
18
b.
The
name
of
the
entertainment
area.
19
c.
The
purpose
of
the
entertainment
area.
20
d.
The
property
proposed
to
be
included
in
the
entertainment
21
area.
22
e.
The
maximum
surcharge,
not
to
exceed
three
percent,
which
23
may
be
imposed
upon
any
of
the
following
retail
sales
within
24
the
entertainment
area:
25
(1)
The
retail
sales
price
of
food
or
alcoholic
beverages
26
sold
at
a
cultural
or
entertainment
establishment,
food
27
establishment,
or
liquor
establishment.
28
(2)
The
retail
sales
price
of
entertainment
tickets
sold
at
29
a
cultural
or
entertainment
establishment.
30
(3)
The
retail
sales
price
for
the
renting
of
any
lodging.
31
5.
At
the
time
and
place
set
in
the
notice
the
council
32
shall
hear
all
owners
of
property
in
the
proposed
entertainment
33
area
or
residents
of
the
city
desiring
to
express
their
34
views.
The
council
must
wait
at
least
thirty
days
after
the
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public
hearing
has
been
held
before
the
council
may
adopt
an
1
ordinance
establishing
the
entertainment
area.
The
established
2
entertainment
area
must
be
comprised
of
all
the
property
in
3
the
proposed
entertainment
area
that
the
council
finds
has
the
4
relationship
or
whose
owners
have
the
interest
described
in
5
subsection
1,
paragraph
“e”
.
Property
included
in
the
proposed
6
entertainment
area
need
not
be
included
in
the
established
7
entertainment
area.
However,
no
property
may
be
included
in
8
the
entertainment
area
that
was
not
included
in
the
proposed
9
entertainment
area
until
the
council
has
held
another
hearing
10
after
the
council
has
published
and
mailed
the
same
notice
as
11
required
in
subsections
3
and
4
on
the
original
petition
to
12
the
owners
of
the
additional
property,
or
has
caused
a
notice
13
of
the
inclusion
of
the
property
to
be
personally
serviced
14
upon
each
owner
of
the
additional
property,
or
has
received
15
a
written
waiver
of
notice
from
each
owner
of
the
additional
16
property.
17
6.
Adoption
of
the
ordinance
establishing
the
entertainment
18
area
requires
the
affirmative
vote
of
three-fourths
of
all
the
19
members
of
the
council,
or
in
cities
having
three
members
of
20
the
council,
the
affirmative
vote
of
two
members.
However,
21
if
a
remonstrance
has
been
filed
with
the
clerk
signed
by
at
22
least
twenty-five
percent
of
all
owners
of
property
within
23
the
proposed
entertainment
area
representing
ownership
of
24
at
least
twenty-five
percent
or
more
of
the
total
number
of
25
cultural
or
entertainment
establishments,
food
establishments,
26
liquor
establishments,
and
lodging
providers
in
the
proposed
27
entertainment
area,
the
adoption
of
the
ordinance
requires
a
28
unanimous
vote
of
the
council.
29
7.
The
clerk
shall
cause
a
copy
of
the
ordinance
to
be
filed
30
in
the
office
of
the
county
recorder
of
each
county
in
which
31
any
property
within
the
entertainment
area
is
located.
32
8.
At
any
time
prior
to
the
final
adoption
of
an
ordinance
33
establishing
an
entertainment
area,
the
entire
matter
of
34
establishing
such
entertainment
area
shall
be
withdrawn
from
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council
consideration
if
a
petition
objecting
to
establishing
1
such
entertainment
area
is
filed
with
the
clerk
containing
2
signatures
of
at
least
forty
percent
or
more
of
all
owners
of
3
property
in
the
proposed
entertainment
area.
4
9.
The
adoption
of
an
ordinance
establishing
an
5
entertainment
area
is
a
legislative
determination
that
the
6
property
within
the
entertainment
area
has
the
relationship
7
or
its
owners
have
the
interest
required
under
subsection
1,
8
paragraph
“e”
,
and
includes
all
of
the
property
within
the
9
entertainment
area
which
has
that
relationship
or
the
ownership
10
of
which
has
that
interest
in
the
entertainment
area.
11
10.
Any
resident
or
property
owner
of
the
city
may
appeal
12
the
action
and
the
decisions
of
the
council,
including
13
the
creation
of
the
entertainment
area
and
imposition
of
a
14
surcharge
for
the
entertainment
area,
to
the
district
court
15
of
the
county
in
which
any
part
of
the
entertainment
area
16
is
located,
within
thirty
days
after
the
date
upon
which
the
17
ordinance
creating
the
entertainment
area
becomes
effective,
18
but
the
action
and
decision
of
the
council
are
final
and
19
conclusive
unless
the
court
finds
that
the
council
exceeded
20
its
authority.
An
action
shall
not
be
brought
questioning
the
21
regularity
of
the
proceedings
pertaining
to
the
establishment
22
of
the
entertainment
area
or
the
validity
of
the
entertainment
23
area,
or
the
propriety
of
the
inclusion
or
exclusion
of
24
any
property
within
or
from
the
entertainment
area,
or
the
25
ability
of
the
city
to
impose
the
surcharge
in
accordance
26
with
the
ordinance
establishing
the
entertainment
area,
after
27
thirty
days
from
the
date
on
which
the
ordinance
creating
the
28
entertainment
area
becomes
effective.
29
11.
The
surcharge
imposed
by
the
ordinance
establishing
30
the
entertainment
area
shall
be
in
addition
to
the
state
31
sales
tax
imposed
pursuant
to
chapter
423,
subchapter
II,
the
32
state-imposed
and
locally
imposed
hotel
and
motel
tax
pursuant
33
to
chapter
423A,
and
the
local
sales
and
services
tax
imposed
34
pursuant
to
chapter
423B.
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12.
a.
Within
ten
days
of
the
effective
date
of
the
1
ordinance
establishing
the
area
and
imposing
the
surcharge,
the
2
county
auditor
of
the
county
with
the
largest
parcel
in
the
3
entertainment
area
shall
give
written
notice
to
the
director
by
4
sending
a
copy
of
the
ordinance
to
the
director.
5
b.
A
surcharge
shall
be
imposed
either
January
1
or
July
6
1
following
the
notification
of
the
director
but
not
sooner
7
than
ninety
days
following
the
effective
date
of
the
ordinance
8
imposing
the
surcharge
and
not
sooner
than
sixty
days
following
9
notice
to
sellers
with
a
place
of
business,
as
defined
in
10
section
423.1,
in
the
entertainment
area
and
to
lodging
11
providers
operating
lodging
in
the
entertainment
area.
12
c.
A
surcharge
shall
be
repealed
only
on
June
30
or
December
13
31
but
not
sooner
than
ninety
days
following
repeal
of
the
14
ordinance.
At
least
forty
days
before
the
repeal
of
the
15
surcharge,
the
council
shall
provide
notice
of
the
action
by
16
certified
mail
to
the
director.
17
13.
a.
An
entertainment
area
may
be
dissolved
and
18
terminated
by
action
of
the
council
rescinding
the
ordinance
19
creating
the
area
and
any
subsequent
ordinances
amending
the
20
area
by
an
affirmative
vote
of
three-fourths
of
all
members
21
of
the
council,
or
in
cities
having
three
members
of
the
22
council,
the
affirmative
vote
of
two
members.
However,
if
23
a
remonstrance
has
been
filed
with
the
clerk
signed
by
at
24
least
twenty-five
percent
of
all
owners
of
property
within
the
25
area
representing
ownership
of
at
least
twenty-five
percent
26
or
more
of
the
total
number
of
cultural
or
entertainment
27
establishments,
food
establishments,
liquor
establishments,
and
28
lodging
providers
in
the
area,
the
rescission
of
the
ordinance
29
creating
the
area,
and
any
subsequent
ordinances
amending
the
30
area,
requires
a
unanimous
vote
of
the
council.
31
b.
At
any
time
prior
to
action
of
the
council
rescinding
the
32
ordinance
creating
the
entertainment
area,
and
any
subsequent
33
ordinances
amending
the
area,
the
entire
matter
of
dissolving
34
an
area
shall
be
withdrawn
from
council
consideration
if
a
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petition
is
filed
with
its
clerk
containing
the
signatures
of
1
at
least
forty
percent
of
all
owners
of
property
within
the
2
area
or
signatures
which
together
represent
ownership
of
at
3
least
forty
percent
or
more
of
the
total
number
of
cultural
4
or
entertainment
establishments,
food
establishments,
liquor
5
establishments,
and
lodging
providers
within
the
area.
6
14.
The
ordinance
creating
an
entertainment
area
may
be
7
amended,
including
to
add
property
to
the
area,
remove
property
8
from
the
area,
extend
the
duration
of
the
area,
or
alter
the
9
amount
of
the
entertainment
surcharge,
by
the
same
procedure
as
10
for
the
establishment
of
the
entertainment
area
and
imposition
11
of
the
surcharge.
12
15.
a.
Upon
the
adoption
of
an
ordinance
establishing
an
13
entertainment
area,
the
city
shall
establish
an
entertainment
14
area
fund,
and
upon
remittance
of
the
revenues
from
the
state
15
surcharge
revenue
fund
to
the
city
under
section
386A.5,
the
16
revenues
shall
be
deposited
into
the
city’s
entertainment
area
17
fund.
18
b.
Surcharge
revenues
deposited
into
an
entertainment
area
19
fund
of
the
city
shall
only
be
used
for
the
following,
as
20
applicable:
21
(1)
For
deposit
into
the
debt
service
fund
in
section
384.4.
22
(2)
For
deposit
into
the
capital
improvements
fund
in
23
section
384.7.
24
(3)
For
the
purposes
described
in
section
384.3A,
25
subsection
3,
paragraph
“b”
,
“c”
,
“e”
,
“f”
,
or
“g”
,
including
26
city
operational
expenses
for
public
safety
services
within
the
27
entertainment
area.
28
Sec.
4.
NEW
SECTION
.
386A.4
Administration
of
surcharge.
29
1.
The
director
shall
administer
the
surcharge
imposed
30
pursuant
to
this
chapter
as
nearly
as
possible
in
conjunction
31
with
the
administration
of
state
sales
tax
laws.
The
director
32
shall
provide
appropriate
forms,
or
provide
space
on
the
33
regular
state
tax
forms,
for
reporting
surcharge
liability.
34
2.
a.
Section
422.25,
subsection
4,
sections
422.30,
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422.67,
and
422.68,
section
422.69,
subsection
1,
sections
1
422.70,
422.71,
422.72,
422.74,
and
422.75,
section
423.14,
2
subsection
1,
and
sections
423.23,
423.24,
423.25,
423.31,
3
423.33,
423.35,
423.37
through
423.42,
and
423.47,
consistent
4
with
the
provisions
of
this
chapter,
apply
with
respect
to
the
5
surcharge
authorized
under
this
chapter,
in
the
same
manner
and
6
with
the
same
effect
as
retail
sales
taxes
within
the
meaning
7
of
those
statutes.
The
director
may
require
all
persons
8
who
are
engaged
in
the
business
of
deriving
any
sales
price
9
subject
to
a
surcharge
under
this
chapter
to
register
with
the
10
department.
All
surcharges
collected
under
this
chapter
are
11
deemed
to
be
held
in
trust
for
the
state
of
Iowa
and
the
cities
12
imposing
the
surcharges.
Local
officials
shall
confer
with
the
13
director
for
assistance
in
drafting
the
ordinance
imposing
the
14
surcharge.
A
certified
copy
of
the
ordinance
shall
be
filed
15
with
the
director
as
soon
as
possible
after
passage.
16
b.
Frequency
of
deposits
and
monthly
reports
of
the
17
surcharge
with
the
department
of
revenue
are
governed
by
the
18
provisions
in
section
423.31.
Local
surcharge
collections
19
shall
not
be
included
in
computation
of
the
total
tax
to
20
determine
frequency
of
filing
under
section
423.31.
21
c.
The
director
shall
apply
a
boundary
change
of
an
22
entertainment
area
to
the
imposition
or
collection
of
that
23
surcharge
only
on
the
first
day
of
a
calendar
month
which
24
occurs
sixty
days
or
more
after
the
director
has
given
notice
25
of
the
boundary
change
to
sellers
with
a
place
of
business,
26
as
defined
in
section
423.1,
in
the
entertainment
area
and
to
27
lodging
providers
operating
lodging
in
the
entertainment
area.
28
3.
a.
The
director,
in
consultation
with
local
officials,
29
shall
collect
and
account
for
the
surcharge.
The
director
30
shall
certify
each
month
the
amount
of
the
surcharge
receipts
31
and
any
interest
and
penalties
to
be
credited
to
the
city
32
account
in
the
state
surcharge
revenue
fund
established
in
33
section
386A.5.
Local
authorities
shall
not
require
any
permit
34
not
required
by
the
director.
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b.
All
surcharge
revenues
and
interest
and
penalties
1
received
or
refunded
one
hundred
eighty
days
or
more
after
the
2
date
on
which
the
city
repeals
the
surcharge
shall
be
deposited
3
in
or
withdrawn
from
the
general
fund
of
the
state.
4
4.
Each
city
that
has
established
an
entertainment
area
5
under
this
chapter
shall
assist
the
department
in
identifying
6
new
establishments
required
to
impose
the
surcharge
in
the
7
entertainment
area.
This
process
shall
be
ongoing
until
the
8
surcharge
is
repealed.
9
Sec.
5.
NEW
SECTION
.
386A.5
State
surcharge
revenue
fund
10
——
accounts.
11
1.
A
state
surcharge
revenue
fund
is
established
in
the
12
state
treasury
under
the
control
of
the
department
consisting
13
of
the
surcharge
revenues
collected
within
each
entertainment
14
area
and
deposited
in
the
fund
pursuant
to
section
386A.4.
15
Revenues
deposited
in
the
fund
are
appropriated
to
the
16
department
for
the
purposes
of
this
section.
17
2.
An
entertainment
area
account
is
created
within
the
18
fund
for
each
city
creating
an
entertainment
area
under
this
19
chapter.
20
3.
The
department
shall
deposit
the
revenues
described
21
in
subsection
1
that
were
collected
in
a
month
beginning
on
22
or
after
the
entertainment
area’s
commencement
date
into
the
23
appropriate
entertainment
area
account
in
the
fund.
24
4.
All
revenues
in
each
entertainment
area
account
within
25
the
fund
shall
be
remitted
monthly
by
the
department
to
the
26
city
that
established
the
entertainment
area
for
deposit
in
the
27
entertainment
area
fund
of
the
city.
28
5.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
29
necessary
to
administer
the
department’s
responsibilities
under
30
this
chapter.
31
Sec.
6.
Section
423A.5A,
subsection
3,
Code
2025,
is
amended
32
to
read
as
follows:
33
3.
Unless
otherwise
provided
in
this
section
,
the
34
state-imposed
tax
under
section
423A.3
and
any
locally
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imposed
tax
under
section
423A.4
shall
be
collected
by
the
1
lodging
provider
from
the
user
of
that
lodging
and
shall
be
2
remitted
to
the
department.
The
lodging
provider
shall
add
3
the
state-imposed
tax
to
the
sales
price
of
the
lodging
and
4
the
tax,
when
collected,
shall
be
stated
as
a
distinct
item,
5
separate
and
apart
from
the
sales
price
of
the
lodging
and
from
6
the
locally
imposed
tax
under
section
423A.4
or
entertainment
7
surcharge
under
chapter
386A
,
if
any.
The
lodging
provider
8
shall
add
the
locally
imposed
tax,
if
any,
to
the
sales
price
9
of
the
lodging
and
the
tax,
when
collected,
shall
be
stated
as
10
a
distinct
item,
separate
and
apart
from
the
sales
price
of
11
the
lodging
and
from
the
state-imposed
tax
or
entertainment
12
surcharge
under
chapter
386A,
if
any
.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
authorizes
cities
to
establish
entertainment
areas
17
and
to
impose
an
entertainment
surcharge
within
the
area.
18
Under
the
bill,
following
the
filing
of
a
petition
for
the
19
establishment
of
an
entertainment
area
(area)
and
holding
a
20
public
hearing,
a
city
may
establish
an
area
by
ordinance
for
21
the
purpose
of
imposing
an
entertainment
surcharge
(surcharge).
22
The
city
council
shall
initiate
proceedings
for
adoption
of
23
the
ordinance
upon
signatures
of
at
least
25
percent
of
the
24
owners
of
property
within
the
proposed
entertainment
area.
The
25
proposed
area
must
meet
all
of
the
following
requirements:
26
(1)
the
combined
attendance
at
cultural
or
entertainment
27
establishments,
food
establishments,
liquor
establishments,
28
and
lodging
providers
within
the
proposed
area
is
reasonably
29
expected
to
exceed
250,000
persons
per
calendar
year
within
30
two
years;
(2)
the
area
consists
of
contiguous
parcels
wholly
31
within
the
boundaries
of
the
city
and
does
not
exceed
75
acres;
32
(3)
the
area
does
not
include
the
entire
incorporated
area
of
33
the
city;
(4)
the
area
consists
only
of
properties
zoned
for
34
commercial
uses
or
properties
within
a
designated
historic
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district,
and
at
least
75
percent
of
the
properties
must
be
1
cultural
or
entertainment
establishments,
food
establishments,
2
liquor
establishments,
or
lodging
providers;
(5)
the
area
must
3
be
comprised
of
property
related
in
some
manner;
and
(6)
the
4
area
must
be
given
a
descriptive
name.
5
Adoption
of
the
ordinance
establishing
the
area
requires
the
6
affirmative
vote
of
three-fourths
of
all
the
members
of
the
7
council,
or
in
cities
having
three
members
of
the
council,
the
8
affirmative
vote
of
two
members.
However,
if
a
remonstrance
9
has
been
filed
with
the
clerk
signed
by
at
least
25
percent
of
10
all
owners
of
property
within
the
proposed
area
representing
11
ownership
of
at
least
25
percent
or
more
of
the
total
number
of
12
cultural
or
entertainment
establishments,
food
establishments,
13
liquor
establishments,
and
lodging
providers
in
the
proposed
14
area,
the
adoption
of
the
ordinance
requires
a
unanimous
vote
15
of
the
council.
At
any
time
prior
to
the
final
adoption
16
of
an
ordinance
establishing
an
area,
the
entire
matter
17
of
establishing
such
area
shall
be
withdrawn
from
council
18
consideration
if
a
petition
objecting
to
establishing
such
area
19
is
filed
with
the
clerk
containing
signatures
of
at
least
40
20
percent
or
more
of
all
owners
of
property
in
the
proposed
area
21
or
signatures
which
together
represent
ownership
of
40
percent
22
or
more
of
the
total
number
of
cultural
or
entertainment
23
establishments,
food
establishments,
liquor
establishments,
and
24
lodging
providers
within
the
proposed
entertainment
area.
25
The
surcharge
authorized
under
the
bill
shall
be
a
rate
not
26
to
exceed
3
percent,
which
shall
be
imposed
upon
any
of
the
27
following
within
the
area:
(1)
the
retail
sales
price
of
food
28
or
alcoholic
beverages
sold
at
a
cultural
or
entertainment
29
establishment,
food
establishment,
or
liquor
establishment;
(2)
30
the
sales
price
of
all
sales
of
entertainment
tickets
sold
at
a
31
cultural
or
entertainment
establishment;
or
(3)
the
sales
price
32
for
the
renting
of
any
lodging.
33
The
bill
specifies
that
the
surcharge
shall
be
in
addition
34
to
the
state
sales
tax
imposed
pursuant
to
Code
chapter
423,
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subchapter
II,
the
state-imposed
and
locally
imposed
hotel
and
1
motel
tax
pursuant
to
Code
chapter
423A,
and
the
local
sales
2
and
services
tax
imposed
pursuant
to
Code
chapter
423B.
The
3
bill
establishes
a
process
and
timing
for
imposition
or
repeal
4
of
the
surcharge
and
for
dissolution
of
the
area.
5
The
bill
specifies
the
director
of
the
department
of
6
revenue
shall
administer
the
surcharge
as
nearly
as
possible
7
in
conjunction
with
the
administration
of
the
state
sales
tax.
8
The
bill
specifies
that
administrative
and
enforcement
laws
9
relating
to
the
sales
tax
apply
to
surcharges
imposed
under
the
10
bill.
The
bill
requires
each
city
to
assist
the
department
in
11
identifying
new
establishments
required
to
impose
the
surcharge
12
in
the
area.
13
The
bill
creates
a
state
surcharge
revenue
fund
in
the
14
state
treasury
under
the
control
of
the
department
of
revenue
15
consisting
of
surcharge
revenues
collected
within
each
area.
16
The
bill
creates
an
area
account
for
each
city
creating
an
17
area.
The
bill
requires
the
revenues
be
deposited
into
the
18
appropriate
area
account.
All
revenues
in
each
area
account
19
shall
be
remitted
monthly
by
the
department
to
the
city
that
20
established
the
area
for
deposit
in
the
entertainment
area
21
fund
of
the
city.
Surcharge
revenues
deposited
into
the
22
city’s
entertainment
area
fund
may
be
deposited
in
any
of
23
the
following
funds:
the
debt
service
fund
in
Code
section
24
384.4,
or
the
capital
improvements
fund
in
Code
section
384.7.
25
If
the
surcharge
revenues
are
not
deposited
in
any
of
the
26
above-mentioned
funds,
the
surcharge
revenues
may
also
be
27
used
for
any
of
the
purposes
described
under
Code
section
28
384.3A(3)(b),
(c),
(e),
(f),
or
(g).
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