Bill Text: IA HF609 | 2017-2018 | 87th General Assembly | Enrolled
Bill Title: A bill for an act providing for the imposition of the local hotel and motel tax by a land use district. Effective 7-1-17.
Spectrum: Committee Bill
Status: (Passed) 2017-05-11 - Signed by Governor. H.J. 1149. [HF609 Detail]
Download: Iowa-2017-HF609-Enrolled.html
House File 609 - Enrolled
HOUSE FILE
BY COMMITTEE ON WAYS AND
MEANS
(SUCCESSOR TO HF 186)
\5
A BILL FOR
\1
House File 609
AN ACT
PROVIDING FOR THE IMPOSITION OF THE LOCAL HOTEL AND
MOTEL TAX BY A LAND USE DISTRICT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 303.52, Code 2017, is amended by adding
the following new subsection:
NEW SUBSECTION. 3A. a. The board of trustees may by
ordinance impose a hotel and motel tax in accordance with
chapter 423A.
b. All revenues derived from imposition of the hotel and
motel tax shall be spent exclusively on the acquisition of
sites for, or constructing, improving, enlarging, equipping,
repairing, operating, or maintaining of recreation, convention,
cultural, or entertainment facilities including but not limited
to memorial buildings, halls and monuments, civic center
convention buildings, auditoriums, coliseums, and parking
areas or facilities located at those recreation, convention,
cultural, or entertainment facilities, or for the promotion and
encouragement of tourist and convention business in the land
use district and surrounding areas.
Sec. 2. Section 423A.4, Code 2017, is amended to read as
follows:
423A.4 Locally imposed hotel and motel tax.
1. A city or, a county, or a land use district created under
chapter 303, subchapter IV, may impose, by ordinance of the
city council or by resolution of the board of supervisors or
by ordinance of the board of trustees, a hotel and motel tax,
at a rate not to exceed seven percent, which shall be imposed
in increments of one or more full percentage points upon the
sales price from the renting of lodging. The tax when imposed
by a city shall apply only within the corporate boundaries
of that city, and when imposed by a county shall apply only
outside incorporated areas within that county, and when imposed
by a land use district shall apply only within the corporate
boundaries of that district. A hotel and motel tax imposed
by a city or county shall not be imposed within the corporate
boundaries of a land use district during any period of time
that the land use district is imposing a hotel and motel tax.
2. Within ten days of the election at which a majority of
those voting on the question favors the imposition, repeal,
or change in the rate of the hotel and motel tax, the county
auditor shall give written notice by sending a copy of the
abstract of votes from the favorable election to the director
of revenue.
3. A local hotel and motel tax shall be imposed on January
1 or July 1, following the notification of the director of
revenue. Once imposed, the tax shall remain in effect at the
rate imposed for a minimum of one year. A local hotel and motel
tax shall terminate only on June 30 or December 31. At least
forty=five days prior to the tax being effective or prior to a
revision in the tax rate or prior to the repeal of the tax, a
city, or county, or land use district shall provide notice by
mail of such action to the director of revenue. The director
shall have the authority to waive the notice requirement.
4. a. A city, or county, or land use district shall impose
or repeal a hotel and motel tax or increase or reduce the tax
rate only after an election at which a majority of those voting
on the question favors imposition, repeal, or change in rate.
However, a hotel and motel tax of a city or county shall not
be repealed or reduced in rate if obligations are outstanding
which are payable as provided in section 423A.7, unless funds
sufficient to pay the principal, interest, and premium, if any,
on the outstanding obligations at and prior to maturity have
been properly set aside and pledged for that purpose.
b. If the tax applies only within the corporate boundaries
of a city, only the registered voters of the city shall be
permitted to vote. The election shall be held at the time of
the regular city election or at a special election called for
that purpose. If the tax applies only in the unincorporated
areas of a county or only within the corporate boundaries
of a land use district, only the registered voters of the
unincorporated areas of the county or the registered voters of
the land use district, as applicable, shall be permitted to
vote. The election shall be held at the time of the general
election or at a special election called for that purpose.
Sec. 3. Section 423A.6, subsection 1, Code 2017, is amended
to read as follows:
1. The director of revenue shall administer the state and
local hotel and motel tax as nearly as possible in conjunction
with the administration of the state sales tax law, except
that portion of the law which implements the streamlined sales
and use tax agreement. The director shall provide appropriate
forms, or provide on the regular state tax forms, for reporting
state and local hotel and motel tax liability. All moneys
received or refunded one hundred eighty days after the date
on which a city, or county, or land use district terminates
its local hotel and motel tax and all moneys received from the
state hotel and motel tax shall be deposited in or withdrawn
from the general fund of the state.
Sec. 4. Section 423A.7, subsection 2, Code 2017, is amended
to read as follows:
2. All moneys in the local transient guest tax fund shall
be remitted at least quarterly by the department, pursuant to
rules of the director of revenue, to each city in the amount
collected from businesses in that city, and to each county in
the amount collected from businesses in the unincorporated
areas of the county, and to each land use district in the
amount collected from businesses in that land use district.
Sec. 5. Section 423A.7, subsection 4, unnumbered paragraph
1, Code 2017, is amended to read as follows:
The revenue derived by a city or county from any local hotel
and motel tax authorized by section 423A.4 shall be used by a
city or county as follows:
Sec. 6. Section 423A.7, Code 2017, is amended by adding the
following new subsection:
NEW SUBSECTION. 5. The revenue derived by a land use
district from any local hotel and motel tax authorized by
section 423A.4 shall be expended exclusively for the purposes
set forth in section 303.52, subsection 3A, paragraph "b".
LINDA UPMEYER
JACK WHITVER
CARMINE BOAL
TERRY E. BRANSTA
-1-
