Bill Text: IA SF193 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act authorizing the establishment of promotion areas and authorizing the imposition of a local lodging fee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-02-16 - Subcommittee, Quirmbach, Allen, and Guth. S.J. 301. [SF193 Detail]
Download: Iowa-2015-SF193-Introduced.html
Senate File 193 - Introduced SENATE FILE BY MATHIS A BILL FOR 1 An Act authorizing the establishment of promotion areas and 2 authorizing the imposition of a local lodging fee. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1343XS (3) 86 md/sc PAG LIN 1 1 Section 1. Section 386.1, Code 2015, is amended by adding 1 2 the following new subsections: 1 3 NEW SUBSECTION. 4A. "Promotion area" means an area which 1 4 may be created and the lessors therein subject to the lodging 1 5 fee in accordance with section 386.3A. 1 6 NEW SUBSECTION. 4B. "Promotion services" means any of the 1 7 following: 1 8 a. Promotion of public events that benefit businesses or 1 9 property in a promotion area. 1 10 b. Coordinating live music performances in a promotion area. 1 11 c. Coordinating promotion, marketing, and sales programs to 1 12 benefit property or businesses located in a promotion area. 1 13 d. Marketing and economic development services, including 1 14 retail retention and recruitment for the promotion area. 1 15 e. Providing security, sanitation, graffiti removal, street 1 16 and sidewalk cleaning, and other services for the promotion 1 17 area that are in addition to those already provided by the 1 18 city. 1 19 f. Any other services that benefit businesses and property 1 20 located in the promotion area. 1 21 Sec. 2. Section 386.2, Code 2015, is amended to read as 1 22 follows: 1 23 386.2 Authorization. 1 24 1. A citywhichthat proposes to create a district, to 1 25 provide for its existence and operation, to provide for 1 26 improvements or self=liquidating improvements for the district, 1 27 to authorize and issue bonds for the purposes of the district, 1 28 and to levy the taxes authorized by this chapter must do so in 1 29 accordance with the provisions of this chapter. 1 30 2. A city that proposes to create a promotion area, to 1 31 provide for its existence and operation, and to undertake 1 32 promotion services in the promotion area must do so in 1 33 accordance with the provisions of this chapter. Except for the 1 34 local lodging fee authorized in section 386.5B, a city is not 1 35 authorized to levy any other taxes authorized in this chapter 2 1 unless the city has also established a district in accordance 2 2 with the provisions of this chapter that includes the property 2 3 comprising the promotion area. 2 4 Sec. 3. NEW SECTION. 386.3A Establishment of a promotion 2 5 area. 2 6 1. A promotion area may be created by action of the council 2 7 following approval by the county board of supervisors, if 2 8 applicable, in accordance with the provisions of this section. 2 9 An area shall: 2 10 a. Be comprised of contiguous property wholly within 2 11 the boundaries of the city. However, a promotion area may 2 12 include property in the unincorporated areas of the county that 2 13 is contiguous to the property of the proposed area located 2 14 within the boundaries of a city, if approved by resolution of 2 15 the county board of supervisors. A promotion area shall be 2 16 comprised only of property that is zoned for commercial or 2 17 industrial uses or properties within a duly designated historic 2 18 district. 2 19 b. Be given a descriptive name containing the words 2 20 "promotion area". 2 21 c. Be comprised of property related in some manner, 2 22 including but not limited to present or potential use, physical 2 23 location, condition, relationship to an area, or relationship 2 24 to present or potential commercial or other activity in an 2 25 area, so as to be benefited in any manner from the performance 2 26 of promotion services in the area. 2 27 2. The council shall initiate proceedings for establishing 2 28 a promotion area upon the filing with the city clerk of a 2 29 petition containing: 2 30 a. The signatures of at least twenty=five percent of all 2 31 owners of property within the proposed promotion area. These 2 32 signatures must together represent ownership of property 2 33 with an assessed value of twenty=five percent or more of the 2 34 assessed value of all of the property in the proposed promotion 2 35 area. 3 1 b. A description of the boundaries of the proposed promotion 3 2 area or a consolidated description of the property within the 3 3 proposed promotion area. 3 4 c. The name of the proposed promotion area. 3 5 d. A statement of the rate of the local lodging fee proposed 3 6 for imposition within the promotion area. 3 7 e. The purpose of the establishment of the promotion area, 3 8 which may be stated generally, or in terms of the relationship 3 9 of the property within the promotion area or the interests of 3 10 the owners of property within the promotion area. 3 11 f. A statement that local lodging fees shall be used for 3 12 promotion services in the promotion area. 3 13 3. a. The council shall notify the city planning commission 3 14 upon the receipt of a petition. It shall be the duty of the 3 15 city planning commission to make recommendations to the council 3 16 in regard to the proposed promotion area. The city planning 3 17 commission shall, with due diligence, prepare an evaluative 3 18 report for the council on the merit and feasibility of the 3 19 promotion services for the proposed promotion area. The 3 20 council shall not hold its public hearings or take further 3 21 action on the establishment of the promotion area until it 3 22 has received the report of the city planning commission. In 3 23 addition to its report, the commission may, from time to time, 3 24 recommend to the council amendments and changes relating to the 3 25 promotion area. 3 26 b. If no city planning commission exists, the council shall 3 27 notify the metropolitan or regional planning commission upon 3 28 receipt of a petition, and such commission shall have the 3 29 same duties set forth in this subsection as a city planning 3 30 commission. If no planning commission exists, the council 3 31 shall notify the zoning commission upon receipt of a petition, 3 32 and such commission shall have the same duties set forth in 3 33 this subsection as a city planning commission. If no planning 3 34 or zoning commission exists, the council shall, upon receipt of 3 35 a petition, conduct a public hearing on the establishment of 4 1 a promotion area. 4 2 4. Upon receipt of the commission's final report or after 4 3 the hearing has been conducted, as applicable, the council 4 4 shall set a time and place for a meeting at which the council 4 5 proposes to take action on the petition filed pursuant to 4 6 subsection 2 for establishment of the promotion area and shall 4 7 publish notice of the meeting as provided in section 362.3, and 4 8 the clerk shall send a copy of the notice by certified mail 4 9 not less than fifteen days before the meeting to each owner 4 10 of property within the proposed promotion area at the owner's 4 11 address as shown by the records of the county auditor. If a 4 12 property is shown to be in the name of more than one owner 4 13 at the same mailing address, a single notice may be mailed 4 14 addressed to all owners at that address. Failure to receive 4 15 a mailed notice is not grounds for objection to the council's 4 16 taking any action authorized in this section, section 386.4A, 4 17 section 386.5A, or section 386.5B. 4 18 5. In addition to the time and place of the meeting for 4 19 hearing on the petition, the notice must state: 4 20 a. That a petition has been filed with the council asking 4 21 that a promotion area be established. 4 22 b. The name of the promotion area. 4 23 c. The purpose of the promotion area. 4 24 d. The property proposed to be included in the promotion 4 25 area. 4 26 e. The rate of the local lodging fee proposed for imposition 4 27 in the promotion area. 4 28 6. At the time and place set in the notice, the council 4 29 shall hear all owners of property in the proposed promotion 4 30 area or residents of the city, or county, if applicable, 4 31 desiring to express their views. The council must wait at 4 32 least thirty days after the public hearing has been held before 4 33 it may adopt an ordinance establishing a promotion area which 4 34 must be comprised of all the property which the council finds 4 35 has the relationship described in subsection 1, paragraph 5 1 "c". Property included in the promotion area proposed in the 5 2 petition need not be included in the established promotion 5 3 area. However, the council may not include property in the 5 4 promotion area that was not included in the petition proposing 5 5 the area until the council has held another public hearing 5 6 after it has published and mailed notice in the same manner 5 7 as required in subsection 4 and containing the information 5 8 required in subsection 5, or has caused a notice of the 5 9 inclusion of the property to be personally served upon each 5 10 owner of the additional property, or has received a written 5 11 waiver of notice from each owner of the additional property. 5 12 7. Adoption of the ordinance establishing a promotion area 5 13 requires the affirmative vote of three=fourths of all of the 5 14 members of the council, or in cities having but three members 5 15 of the council, the affirmative vote of two members. However, 5 16 if a remonstrance has been filed with the clerk signed by at 5 17 least twenty=five percent of all owners of property within the 5 18 proposed promotion area representing ownership of property 5 19 with an assessed value of twenty=five percent or more of the 5 20 assessed value of all of the property in the proposed promotion 5 21 area, the adoption of the ordinance requires a unanimous vote 5 22 of the council. 5 23 8. The clerk shall cause a copy of the ordinance to be filed 5 24 in the office of the county recorder of each county in which 5 25 any property within the promotion area is located. 5 26 9. At any time prior to adoption of an ordinance 5 27 establishing a promotion area, the entire matter of 5 28 establishing such promotion area shall be withdrawn from 5 29 council consideration if a petition objecting to establishing 5 30 such area is filed with the city clerk containing the 5 31 signatures of at least forty percent of all owners of property 5 32 within the proposed promotion area or signatures which together 5 33 represent ownership of property with an assessed value of forty 5 34 percent or more of the assessed value of all property within 5 35 the proposed promotion area. 6 1 10. The adoption of an ordinance establishing a promotion 6 2 area is a legislative determination that the property within 6 3 the promotion area has the relationship required under 6 4 subsection 1, paragraph "c", and includes all of the property 6 5 within the promotion area which has that relationship in the 6 6 promotion area. 6 7 11. Any resident or property owner of the city, or of the 6 8 unincorporated area of the county, if applicable, may appeal 6 9 the action and the decisions of the council, including the 6 10 creation of the promotion area and the imposition of the local 6 11 lodging fee, to the district court of the county in which any 6 12 part of the promotion area is located, within thirty days after 6 13 the date upon which the ordinance creating the promotion area 6 14 becomes effective, but the action and decision of the council 6 15 are final and conclusive unless the court finds that the 6 16 council exceeded its authority. An action may not be brought 6 17 questioning the regularity of the proceedings pertaining to 6 18 the establishment of a promotion area or the validity of the 6 19 promotion, or the propriety of the inclusion or exclusion of 6 20 any property within or from the promotion area, or the ability 6 21 to impose a local lodging fee in accordance with the ordinance 6 22 establishing the promotion area, after thirty days from the 6 23 date on which the ordinance creating the promotion area becomes 6 24 effective. 6 25 Sec. 4. NEW SECTION. 386.4A Amendments to promotion areas. 6 26 1. The ordinance creating a promotion area may be amended 6 27 and property may be added to a promotion area and the local 6 28 lodging fee rate referred to in the ordinance may be changed at 6 29 any time in the same manner and by the same procedure as for the 6 30 establishment of a promotion area. 6 31 2. Action by the council amending the ordinance creating 6 32 the promotion area, including adding property to or severing 6 33 property from the promotion area, or changing the rate of 6 34 the local lodging fee, shall be by ordinance adopted by an 6 35 affirmative vote of three=fourths of all of the members of 7 1 the council, or in cities having but three members of the 7 2 council, the affirmative vote of two members. However, if 7 3 a remonstrance has been filed with the clerk signed by at 7 4 least twenty=five percent of all owners of property within 7 5 the promotion area and all property proposed to be included 7 6 representing ownership of property with an assessed value of 7 7 twenty=five percent or more of the assessed value of all the 7 8 property in the promotion area and all property proposed to be 7 9 included, the amending ordinance must be adopted by unanimous 7 10 vote of the council. 7 11 3. The clerk shall cause a copy of the amending ordinance 7 12 to be filed in the office of the county recorder of each county 7 13 in which any property within the promotion area, as amended, 7 14 is located. 7 15 4. At any time prior to council amendment of the ordinance 7 16 creating the promotion area, the entire matter of amending such 7 17 ordinance shall be withdrawn from council consideration if a 7 18 petition objecting to amending such ordinance is filed with 7 19 the city clerk containing either the signatures of at least 7 20 forty percent of all owners of property within the promotion 7 21 area and all property proposed to be included or signatures 7 22 which together represent ownership of property with an assessed 7 23 value of forty percent or more of the assessed value of all 7 24 property within the promotion area and all property proposed 7 25 to be included. 7 26 5. Any resident or property owner of the city may appeal 7 27 the action or decisions of the council amending the ordinance 7 28 creating the promotion area to the district court of the county 7 29 in which any part of the promotion area, as amended, is located 7 30 within fifteen days after the date upon which the amending 7 31 ordinance becomes effective, but the action and decision of 7 32 the council are final and conclusive unless the court finds 7 33 that the council exceeded its authority. An action may not 7 34 be brought questioning the regularity of the proceedings 7 35 pertaining to the amended ordinance or the validity of the 8 1 promotion area as amended, or the propriety of the inclusion 8 2 or exclusion of any property within or from the amended 8 3 promotion area, or the ability to impose the local lodging fee 8 4 in accordance with the ordinance establishing the promotion 8 5 area, as amended, after thirty days from the date upon which 8 6 the amending ordinance becomes effective. 8 7 6. All other provisions in section 386.3A shall apply to 8 8 an amended promotion area and to any ordinance amending the 8 9 ordinance creating the promotion area with the same effect as 8 10 they apply to the original promotion area and the ordinance 8 11 creating the original promotion area. 8 12 Sec. 5. NEW SECTION. 386.5A Dissolution. 8 13 1. A promotion area may be dissolved and terminated by 8 14 action of the council repealing the ordinance creating the 8 15 promotion area, and any subsequent ordinances amending the 8 16 ordinance creating the promotion area, by an affirmative vote 8 17 of three=fourths of all members of the council, or in cities 8 18 having but three members of the council, the affirmative vote 8 19 of two members. However, if a remonstrance has been filed with 8 20 the clerk signed by at least twenty=five percent of all owners 8 21 of property within the promotion area representing ownership 8 22 of property with an assessed value of twenty=five percent or 8 23 more of the assessed value of all the property in the promotion 8 24 area, the repeal of the ordinance creating the promotion area, 8 25 and any subsequent ordinances amending the ordinance creating 8 26 the promotion area, requires a unanimous vote of the council. 8 27 2. At any time prior to action of the council repealing 8 28 the ordinance creating the promotion area, and any subsequent 8 29 ordinances amending the ordinance creating the promotion area, 8 30 the entire matter of dissolving a promotion area shall be 8 31 withdrawn from council consideration if a petition is filed 8 32 with the city clerk containing the signatures of at least forty 8 33 percent of all owners of property within the promotion area 8 34 or signatures which together represent ownership of property 8 35 with an assessed value of forty percent or more of the assessed 9 1 value of all property within the promotion area. 9 2 Sec. 6. NEW SECTION. 386.5B Local lodging fee. 9 3 1. Following establishment of a promotion area in 9 4 accordance with this chapter, a city may impose, as part of 9 5 the ordinance establishing the promotion area, a local lodging 9 6 fee to be imposed on each night of lodging rental at a lessor 9 7 located in the promotion area. 9 8 2. The local lodging fee shall be collected by the lessor 9 9 of lodging from the user of that lodging. The lessor shall add 9 10 the fee to the sales price of the lodging, and the fee shall 9 11 be stated as a distinct item separate and apart from the sales 9 12 price of the lodging and taxes imposed, if any, under section 9 13 423A.3 or 423A.4. 9 14 3. Local lodging fees collected by a lessor shall be due and 9 15 payable to the city according to a schedule specified in the 9 16 ordinance creating the promotion area. A lessor is liable for 9 17 the payment of fees to the city in the same manner as liability 9 18 is imposed on retailers for the payment of taxes under sections 9 19 421.26 and 421.28. 9 20 4. Fees received by a city under this section shall be 9 21 deposited in a promotion area account within the city's general 9 22 fund. A separate account shall be created for each promotion 9 23 area established by the city. All fees collected under this 9 24 section are deemed to be held in trust for the city. 9 25 5. Moneys in a promotion area account shall be used for 9 26 promotion services within the applicable promotion area. 9 27 6. The ordinance imposing a local lodging fee under this 9 28 section shall designate a city officer to receive payments 9 29 from lessors and to prescribe any forms necessary for the 9 30 collection, reporting, and payment of such fees. 9 31 7. For the purposes of this section, unless the context 9 32 otherwise requires, "lessor", "lodging", "rent", and "user" mean 9 33 the same as defined in section 423A.2. 9 34 Sec. 7. Section 423A.3, Code 2015, is amended to read as 9 35 follows: 10 1 423A.3 State=imposed hotel and motel tax. 10 2 A tax of five percent is imposed upon the sales price for 10 3 the renting of any lodging if the renting occurs in this state. 10 4 The tax shall be collected by any lessor of lodging from the 10 5 user of that lodging. The lessor shall add the tax to the 10 6 sales price of the lodging, and the state=imposed tax, when 10 7 collected, shall be stated as a distinct item, separate and 10 8 apart from the sales price of the lodging,andthe local tax 10 9 imposed, if any, under section 423A.4, and the local lodging 10 10 fee imposed, if any, under section 386.5B. 10 11 Sec. 8. Section 423A.5, Code 2015, is amended by adding the 10 12 following new subsection: 10 13 NEW SUBSECTION. 3. All of the following are exempt from any 10 14 fee imposed under section 386.5B: 10 15 a. The renting of lodging which is rented by the same person 10 16 for a period of more than thirty=one consecutive days. 10 17 b. The renting of sleeping rooms in dormitories and in the 10 18 memorial unions at all universities and colleges located in the 10 19 state of Iowa. 10 20 c. The lodging furnished to the guests of a religious 10 21 institution if the property is exempt under section 427.1, 10 22 subsection 8, and the purpose of renting is to provide a 10 23 place for a religious retreat or function and not a place for 10 24 transient guests generally. 10 25 EXPLANATION 10 26 The inclusion of this explanation does not constitute agreement with 10 27 the explanation's substance by the members of the general assembly. 10 28 This bill authorizes the establishment of promotion areas by 10 29 cities and authorizes the imposition of a local lodging fee in 10 30 those promotion areas. 10 31 Under the bill, a promotion area may be created by action 10 32 of the city council under Code chapter 386 (self=supported 10 33 municipal improvement districts). A promotion area must be 10 34 comprised of contiguous property wholly within the boundaries 10 35 of the city but may include property in the unincorporated 11 1 area of the county that is contiguous to the property of the 11 2 proposed area if the county board of supervisors approves its 11 3 inclusion by resolution. The bill requires that the promotion 11 4 area be comprised of property related in some manner, including 11 5 but not limited to present or potential use, physical location, 11 6 condition, relationship to an area, or relationship to present 11 7 or potential commercial or other activity in an area, so as to 11 8 be benefited in any manner from the performance of promotion 11 9 services in the area. 11 10 The bill requires the council to initiate proceedings 11 11 for establishing a promotion area upon the filing of a 11 12 petition containing a specified number of signatures and other 11 13 information specified in the bill. 11 14 The bill requires the council to notify the city planning 11 15 commission upon the receipt of a petition, and the planning 11 16 commission is required to make recommendations to the council 11 17 in regard to the proposed promotion area. The city planning 11 18 commission is also required to prepare an evaluative report 11 19 for the council on the merit and feasibility of the promotion 11 20 services for the proposed promotion area. The bill provides 11 21 alternative procedures in the event the city does not have a 11 22 planning commission. 11 23 Upon the receipt of the commission's final report, the 11 24 council shall set a time and place for a meeting at which the 11 25 council proposes to take action for the establishment of the 11 26 promotion area and receive comments from residents. 11 27 The bill establishes council voting requirements for 11 28 the approval of an ordinance establishing a promotion area, 11 29 provisions which remove the entire matter from the council's 11 30 consideration, appeal provisions relating to the establishment 11 31 of a promotion area, provisions governing amendments to the 11 32 ordinance creating the promotion area, and provisions governing 11 33 the dissolution of the promotion area. Such requirements and 11 34 provisions are similar to those in current Code chapter 386 11 35 for establishment of a self=supported municipal improvement 12 1 district. 12 2 The bill provides that except for the local lodging fee 12 3 authorized in the bill, a city is not authorized to levy any 12 4 taxes authorized in Code chapter 386 within a promotion area 12 5 unless the city has also established a district in accordance 12 6 with the provisions of Code chapter 386 that includes the 12 7 property comprising the promotion area. 12 8 Following establishment of a promotion area, as part of the 12 9 ordinance establishing the promotion area, a city may impose a 12 10 local lodging fee to be imposed on each night of lodging rental 12 11 at a lessor located in the promotion area. The local lodging 12 12 fee shall be collected by the lessor of lodging from the user 12 13 of that lodging. The lessor shall add the fee to the sales 12 14 price of the lodging, and the fee shall be stated as a distinct 12 15 item separate and apart from the sales price of the lodging 12 16 and taxes imposed. Local lodging fees collected by a lessor 12 17 shall be due and payable to the city according to a schedule 12 18 specified in the ordinance. A lessor is liable for the payment 12 19 of fees to the city in the same manner as liability is imposed 12 20 on retailers for the payment of certain state taxes. 12 21 The bill requires that local lodging fees received by a city 12 22 be deposited in a promotion area account within the city's 12 23 general fund. Moneys in a promotion area account shall be 12 24 used for promotion services within the applicable promotion 12 25 area. The bill defines "promotion services" to mean any 12 26 of the following: promotion of public events that benefit 12 27 businesses or property in a promotion area; coordinating live 12 28 music performances in a promotion area; coordinating promotion, 12 29 marketing, and sales programs to benefit property or businesses 12 30 located in a promotion area; marketing and economic development 12 31 services, including retail retention and recruitment for the 12 32 promotion area; providing security, sanitation, graffiti 12 33 removal, street and sidewalk cleaning, and other services 12 34 for the promotion area that are in addition to those already 12 35 provided by the city; and any other services that benefit 13 1 businesses and property located in the promotion area. 13 2 The bill provides that an ordinance imposing a local lodging 13 3 fee is required to designate a city officer to receive payments 13 4 from lessors and to prescribe any forms necessary for the 13 5 collection, reporting, and payment of such fees. LSB 1343XS (3) 86 md/sc
