Bill Text: IA SF2348 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to the approval and imposition of local option taxes. (Formerly SF 2331.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2014-04-24 - Subcommittee, Windschitl, Gaskill, and Sands. H.J. 800. [SF2348 Detail]
Download: Iowa-2013-SF2348-Introduced.html
Senate
File
2348
-
Introduced
SENATE
FILE
2348
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
2331)
A
BILL
FOR
An
Act
relating
to
the
approval
and
imposition
of
local
option
1
taxes.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
423B.1,
subsection
1,
Code
2014,
is
1
amended
by
striking
the
subsection
and
inserting
in
lieu
2
thereof
the
following:
3
1.
a.
A
county
may
impose
by
ordinance
of
the
board
of
4
supervisors
the
local
vehicle
tax
authorized
by
this
chapter,
5
subject
to
this
section.
6
b.
A
city
or
county
may
impose
by
ordinance
the
local
sales
7
and
services
tax
authorized
by
this
chapter,
subject
to
this
8
section.
9
Sec.
2.
Section
423B.1,
subsection
2,
paragraph
b,
10
subparagraph
(3),
Code
2014,
is
amended
to
read
as
follows:
11
(3)
The
tax
once
imposed
shall
continue
to
be
imposed
until
12
the
county-imposed
tax
is
reduced
or
increased
in
rate
or
13
repealed,
and
then
the
city-imposed
tax
shall
also
be
reduced
14
or
increased
in
rate
or
repealed
in
the
same
amount
and
be
15
effective
on
the
same
date.
16
Sec.
3.
Section
423B.1,
subsection
3,
Code
2014,
is
amended
17
to
read
as
follows:
18
3.
a.
A
local
option
tax
shall
be
imposed
only
after
an
19
election
at
which
If
a
majority
of
those
voting
on
the
question
20
of
imposition
of
a
local
option
tax
favors
imposition
and
,
the
21
local
option
tax
shall
then
be
imposed
at
the
rate
specified
on
22
the
ballot
for
an
unlimited
period
until
repealed
as
provided
23
in
subsection
6
,
paragraph
“a”
this
chapter
.
24
b.
If
the
tax
is
a
local
vehicle
tax
imposed
by
a
county,
25
it
shall
apply
to
all
incorporated
and
unincorporated
areas
of
26
the
county.
27
c.
(1)
(a)
If
the
tax
is
a
local
sales
and
services
tax
28
imposed
by
a
county
that
is
a
qualified
county
,
it
shall
only
29
apply
to
those
incorporated
areas
and
the
unincorporated
area
30
of
that
county
in
which
if
a
majority
of
those
voting
in
the
31
area
on
the
tax
favors
its
imposition.
32
(b)
If
the
tax
is
a
local
sales
and
services
tax
imposed
by
33
a
city
located
in
a
county
that
is
a
qualified
county,
other
34
than
a
city
under
subsection
2,
it
shall
only
apply
to
the
city
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if
a
majority
of
those
voting
in
the
city
on
the
tax
favors
its
1
imposition.
2
(2)
If
the
tax
is
a
local
sales
and
services
tax
imposed
by
3
a
county
that
is
not
a
qualified
county,
it
shall
only
apply
to
4
those
incorporated
areas
and
the
unincorporated
area
of
that
5
county
in
which
a
majority
of
those
voting
in
the
area
on
the
6
tax
favors
its
imposition.
For
purposes
of
the
local
sales
7
and
services
tax
imposed
by
a
county
that
is
not
a
qualified
8
county
,
all
cities
contiguous
to
each
other
shall
be
treated
9
as
part
of
one
incorporated
area
and
the
tax
would
shall
be
10
imposed
in
each
of
those
contiguous
cities
only
if
the
majority
11
of
those
voting
in
the
total
area
covered
by
the
contiguous
12
cities
favors
its
imposition.
In
the
case
of
a
local
sales
and
13
services
tax
submitted
to
the
registered
voters
of
two
or
more
14
contiguous
counties
as
provided
in
subsection
4
,
paragraph
“c”
,
15
all
cities
contiguous
to
each
other
shall
be
treated
as
part
of
16
one
incorporated
area,
even
if
the
corporate
boundaries
of
one
17
or
more
of
the
cities
include
areas
of
more
than
one
county,
18
and
the
tax
shall
be
imposed
in
each
of
those
contiguous
cities
19
only
if
a
majority
of
those
voting
on
the
tax
in
the
total
area
20
covered
by
the
contiguous
cities
favored
its
imposition.
For
21
purposes
of
the
local
sales
and
services
tax,
a
city
is
not
22
contiguous
to
another
city
if
the
only
road
access
between
the
23
two
cities
is
through
another
state.
24
Sec.
4.
Section
423B.1,
Code
2014,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
3A.
For
purposes
of
this
chapter,
27
“qualified
county”
means
a
county
with
a
population
in
excess
of
28
four
hundred
thousand
or
a
county
with
a
population
of
at
least
29
sixty
thousand
but
not
more
than
seventy
thousand,
according
to
30
the
2010
federal
decennial
census.
31
Sec.
5.
Section
423B.1,
subsections
4
and
5,
Code
2014,
are
32
amended
to
read
as
follows:
33
4.
a.
(1)
A
The
county
board
of
supervisors
shall
direct
34
within
thirty
days
the
county
commissioner
of
elections
to
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submit
the
question
of
imposition
of
a
local
vehicle
tax
or
1
a
local
sales
and
services
tax
to
the
registered
voters
of
2
the
incorporated
and
unincorporated
areas
of
the
county
upon
3
receipt
of
a
petition,
requesting
imposition
of
a
local
vehicle
4
tax
or
a
local
sales
and
services
tax
,
signed
by
eligible
5
electors
of
the
whole
county
equal
in
number
to
five
percent
of
6
the
persons
in
the
whole
county
who
voted
at
the
last
preceding
7
general
election.
In
the
case
of
a
local
vehicle
tax,
the
The
8
petition
requesting
imposition
shall
specify
the
rate
of
tax
9
and
the
classes,
if
any,
that
are
to
be
exempt.
If
more
than
10
one
valid
petition
is
received,
the
earliest
received
petition
11
shall
be
used.
12
(2)
The
county
board
of
supervisors
for
a
qualified
county
13
shall
direct
within
thirty
days
the
county
commissioner
of
14
elections
to
submit
the
question
of
imposition
of
a
local
15
sales
and
services
tax
to
the
registered
voters
of
a
city
or
16
to
the
registered
voters
of
the
unincorporated
area
of
the
17
county
upon
receipt
by
the
board
of
supervisors
of
a
petition,
18
requesting
imposition
of
a
local
sales
and
services
tax,
signed
19
by
eligible
electors
of
the
city
or
eligible
electors
of
the
20
unincorporated
area
of
the
county,
as
applicable,
equal
in
21
number
to
five
percent
of
the
persons
in
the
applicable
city
22
or
unincorporated
area
of
the
county
who
voted
at
the
last
23
preceding
general
election.
If
more
than
one
valid
petition
24
is
received
for
a
city
or
for
the
unincorporated
area
of
the
25
county,
the
earliest
received
petition
shall
be
used.
26
(3)
A
county
board
of
supervisors
for
a
county
that
is
not
27
a
qualified
county
shall
direct
within
thirty
days
the
county
28
commissioner
of
elections
to
submit
the
question
of
imposition
29
of
a
local
sales
and
services
tax
to
the
registered
voters
of
30
the
incorporated
and
unincorporated
areas
of
the
county
upon
31
receipt
of
a
petition,
requesting
imposition
of
a
local
sales
32
and
services
tax,
signed
by
eligible
electors
of
the
whole
33
county
equal
in
number
to
five
percent
of
the
persons
in
the
34
whole
county
who
voted
at
the
last
preceding
general
election.
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If
more
than
one
valid
petition
is
received,
the
earliest
1
received
petition
shall
be
used.
2
b.
(1)
The
question
of
the
imposition
of
a
local
sales
3
and
services
tax
in
a
qualified
county
shall
be
submitted
to
4
the
registered
voters
of
the
city
or
to
the
registered
voters
5
of
the
unincorporated
area
of
the
county
upon
receipt
by
the
6
county
commissioner
of
elections
of
a
motion,
requesting
such
7
submission,
adopted
by
the
governing
body
of
a
city
located
8
within
the
county
or
of
the
county
for
the
unincorporated
area
9
of
the
county.
Upon
adoption
of
such
motion,
the
governing
10
body
of
the
city
or
county
for
the
unincorporated
area,
shall
11
submit
the
motion
to
the
county
commissioner
of
elections.
The
12
county
commissioner
of
elections
shall
publish
notice
of
the
13
ballot
proposition
concerning
the
imposition
of
the
local
sales
14
and
services
tax.
The
manner
provided
under
this
subparagraph
15
for
the
submission
of
the
question
of
imposition
of
a
local
16
sales
and
services
tax
is
an
alternative
to
the
manner
provided
17
in
paragraph
“a”
,
subparagraph
(2).
18
(2)
The
question
of
the
imposition
of
a
local
sales
and
19
services
tax
in
a
county
that
is
not
a
qualified
county
shall
20
be
submitted
to
the
registered
voters
of
the
incorporated
and
21
unincorporated
areas
of
the
county
upon
receipt
by
the
county
22
commissioner
of
elections
of
the
motion
or
motions,
requesting
23
such
submission,
adopted
by
the
governing
body
or
bodies
of
the
24
city
or
cities
located
within
the
county
or
of
the
county,
for
25
the
unincorporated
areas
of
the
county,
representing
at
least
26
one
half
of
the
population
of
the
county.
Upon
adoption
of
27
such
motion,
the
governing
body
of
the
city
or
county,
for
the
28
unincorporated
areas,
shall
submit
the
motion
to
the
county
29
commissioner
of
elections
and
in
the
case
of
the
governing
30
body
of
the
city
shall
notify
the
board
of
supervisors
of
the
31
adoption
of
the
motion.
The
county
commissioner
of
elections
32
shall
keep
a
file
on
all
the
motions
received
and,
upon
33
reaching
the
population
requirements,
shall
publish
notice
of
34
the
ballot
proposition
concerning
the
imposition
of
the
local
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sales
and
services
tax.
A
motion
ceases
to
be
valid
at
the
1
time
of
the
holding
of
the
regular
election
for
the
election
of
2
members
of
the
governing
body
which
that
adopted
the
motion.
3
The
county
commissioner
of
elections
shall
eliminate
from
the
4
file
any
motion
that
ceases
to
be
valid.
The
manner
provided
5
under
this
paragraph
subparagraph
for
the
submission
of
the
6
question
of
imposition
of
a
local
sales
and
services
tax
7
is
an
alternative
to
the
manner
provided
in
paragraph
“a”
,
8
subparagraph
(3)
.
9
c.
Upon
receipt
of
petitions
or
motions
calling
for
the
10
submission
of
the
question
of
the
imposition
of
a
local
sales
11
and
services
tax
as
described
in
paragraph
“a”
or
“b”
,
the
12
boards
of
supervisors
of
two
or
more
contiguous
counties
in
13
which
the
question
is
to
be
submitted
may
enter
into
a
joint
14
agreement
providing
that
for
purposes
of
this
chapter
,
a
15
city
whose
corporate
boundaries
include
areas
of
more
than
16
one
county
shall
be
treated
as
part
of
the
county
in
which
a
17
majority
of
the
residents
of
the
city
reside.
In
such
event,
18
the
county
commissioners
of
elections
from
each
such
county
19
shall
cooperate
in
the
selection
of
a
single
date
upon
which
20
the
election
shall
be
held,
and
for
all
purposes
of
this
21
chapter
relating
to
the
imposition,
repeal,
change
of
use,
22
or
collection
of
the
tax,
such
a
city
shall
be
deemed
to
be
23
part
of
the
county
in
which
a
majority
of
the
residents
of
the
24
city
reside.
A
copy
of
the
joint
agreement
shall
be
provided
25
promptly
to
the
director
of
revenue.
26
5.
a.
The
county
commissioner
of
elections
shall
submit
27
the
question
of
imposition
of
a
local
option
tax
at
an
election
28
held
on
a
date
specified
in
section
39.2,
subsection
4
,
29
paragraph
“a”
or
“b”
,
as
applicable
.
The
election
shall
not
be
30
held
sooner
than
sixty
days
after
publication
of
notice
of
the
31
ballot
proposition.
32
b.
The
ballot
proposition
shall
specify
the
type
and
rate
of
33
tax
and
,
in
the
case
of
a
vehicle
tax
,
the
classes
that
will
be
34
exempt
and
,
in
the
case
of
a
local
sales
and
services
tax
,
the
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date
it
will
be
imposed
which
date
shall
not
be
earlier
than
1
ninety
days
following
the
election.
The
ballot
proposition
2
shall
also
specify
the
approximate
amount
of
local
option
tax
3
revenues
that
will
be
used
for
property
tax
relief
and
shall
4
contain
a
statement
as
to
the
specific
purpose
or
purposes
for
5
which
the
revenues
shall
otherwise
be
expended.
If
the
county
6
board
of
supervisors
in
a
county
that
is
not
a
qualified
county
7
or
if
the
board
of
supervisors
or
city
council,
as
applicable,
8
in
a
qualified
county
decides
under
subsection
6
to
specify
a
9
date
on
which
the
local
option
sales
and
services
tax
shall
10
automatically
be
repealed,
the
date
of
the
repeal
shall
also
be
11
specified
on
the
ballot.
12
c.
The
rate
of
the
vehicle
tax
shall
be
in
increments
of
one
13
dollar
per
vehicle
as
set
by
the
petition
seeking
to
impose
the
14
tax.
15
d.
The
rate
of
a
local
sales
and
services
tax
shall
not
be
16
more
than
one
percent
as
set
by
the
governing
body
.
17
e.
The
state
commissioner
of
elections
shall
establish
by
18
rule
the
form
for
the
ballot
proposition
which
form
shall
be
19
uniform
throughout
the
state.
20
Sec.
6.
Section
423B.1,
subsection
6,
paragraph
a,
21
subparagraph
(1),
Code
2014,
is
amended
by
striking
the
22
subparagraph.
23
Sec.
7.
Section
423B.1,
subsection
6,
paragraph
a,
24
subparagraphs
(2)
and
(3),
Code
2014,
are
amended
to
read
as
25
follows:
26
(2)
(a)
The
A
local
option
tax
may
be
repealed
or
the
27
rate
of
the
local
vehicle
tax
increased
or
decreased
or
the
28
use
thereof
of
a
local
option
tax
changed
after
an
election
at
29
which
a
majority
of
those
voting
on
the
question
of
repeal
or
30
rate
or
use
change
favored
favors
the
repeal
or
rate
or
use
31
change.
32
(b)
The
date
on
which
the
repeal,
rate,
or
use
change
is
33
to
take
effect
shall
not
be
earlier
than
ninety
days
following
34
the
election.
The
election
at
which
the
question
of
repeal
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or
rate
or
use
change
is
offered
shall
be
called
and
held
in
1
the
same
manner
and
under
the
same
conditions
as
provided
in
2
subsections
4
and
5
for
the
election
on
the
imposition
of
the
3
local
option
tax.
However,
in
the
case
of
a
local
sales
and
4
services
tax
where
the
tax
has
not
been
imposed
countywide,
the
5
question
of
repeal
or
imposition
or
rate
or
use
change
shall
6
be
voted
on
only
by
the
registered
voters
of
the
areas
of
the
7
county
where
the
tax
has
been
imposed
or
has
not
been
imposed,
8
as
appropriate.
9
(c)
However,
the
The
governing
body
of
the
incorporated
10
area
city
or
unincorporated
area
where
the
local
sales
and
11
services
tax
is
imposed
may,
upon
its
own
motion,
request
the
12
county
commissioner
of
elections
to
hold
an
election
in
the
13
incorporated
city
or
unincorporated
area,
as
appropriate,
on
14
the
question
of
the
change
in
use
of
local
sales
and
services
15
tax
revenues.
The
election
may
be
held
at
any
time
but
not
16
sooner
than
sixty
days
following
publication
of
the
ballot
17
proposition.
If
a
majority
of
those
voting
in
the
incorporated
18
city
or
unincorporated
area
on
the
change
in
use
favors
the
19
change,
the
governing
body
of
that
city
or
area
shall
change
20
the
use
to
which
the
revenues
shall
be
used.
The
ballot
21
proposition
shall
list
the
present
use
of
the
revenues,
the
22
proposed
use,
and
the
date
after
which
revenues
received
will
23
be
used
for
the
new
use.
24
(3)
When
submitting
the
question
of
the
imposition
of
a
25
local
sales
and
services
tax,
the
county
board
of
supervisors
26
of
a
county
that
is
not
a
qualified
county
or
the
board
of
27
supervisors
or
the
governing
body
of
the
city,
as
applicable,
28
in
a
qualified
county
may
direct
that
the
question
contain
a
29
provision
for
the
repeal,
without
election,
of
the
local
sales
30
and
services
tax
on
a
specific
date,
which
date
shall
be
as
31
provided
in
section
423B.6,
subsection
1
.
32
Sec.
8.
Section
423B.1,
subsection
7,
paragraph
b,
Code
33
2014,
is
amended
to
read
as
follows:
34
b.
Costs
of
local
option
tax
elections
shall
be
apportioned
35
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among
jurisdictions
within
the
county
voting
on
the
question
1
at
the
same
election
on
a
pro
rata
basis
in
proportion
to
the
2
number
of
registered
voters
in
each
taxing
jurisdiction
voting
3
on
the
question
and
the
total
number
of
registered
voters
in
4
all
of
the
taxing
jurisdictions
voting
on
the
question
.
5
Sec.
9.
Section
423B.1,
subsection
8,
Code
2014,
is
amended
6
by
striking
the
subsection.
7
Sec.
10.
Section
423B.1,
subsections
9
and
10,
Code
2014,
8
are
amended
to
read
as
follows:
9
9.
a.
In
a
county
that
has
imposed
a
local
option
sales
10
and
services
tax
that
is
not
a
qualified
county
,
the
board
11
of
supervisors
shall,
notwithstanding
any
contrary
provision
12
of
this
chapter
,
repeal
the
local
option
sales
and
services
13
tax
in
the
unincorporated
areas
or
in
an
incorporated
city
14
area
in
which
the
tax
has
been
imposed
upon
adoption
of
its
15
the
board’s
own
motion
for
repeal
in
the
unincorporated
areas
16
or
upon
receipt
of
a
motion
adopted
by
the
governing
body
of
17
that
incorporated
city
area
requesting
repeal.
The
board
of
18
supervisors
shall
repeal
the
local
option
sales
and
services
19
tax
effective
on
the
later
of
the
date
of
the
adoption
of
the
20
repeal
motion
or
the
earliest
date
specified
in
section
423B.6,
21
subsection
1
.
For
purposes
of
this
subsection
paragraph
,
22
incorporated
city
area
includes
an
incorporated
city
which
is
23
contiguous
to
another
incorporated
city.
24
b.
For
a
qualified
county:
25
(1)
In
a
city
that
has
imposed
a
local
sales
and
services
26
tax,
the
governing
body
of
the
city
shall,
notwithstanding
any
27
contrary
provision
of
this
chapter,
repeal
the
local
sales
28
and
services
tax
in
the
city
upon
adoption
of
its
own
motion
29
for
repeal.
The
governing
body
of
the
city
shall
repeal
the
30
local
sales
and
services
tax
effective
on
the
later
of
the
31
date
of
the
adoption
of
the
repeal
motion
or
the
earliest
date
32
specified
in
section
423B.6,
subsection
1.
33
(2)
In
the
unincorporated
area
of
the
county
where
the
34
local
sales
and
services
tax
has
been
imposed,
the
board
of
35
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supervisors
shall,
notwithstanding
any
contrary
provision
of
1
this
chapter,
repeal
the
local
sales
and
services
tax
in
the
2
unincorporated
area
of
the
county
upon
adoption
of
its
own
3
motion
for
repeal.
The
board
of
supervisors
shall
repeal
the
4
local
sales
and
services
tax
effective
on
the
later
of
the
5
date
of
the
adoption
of
the
repeal
motion
or
the
earliest
date
6
specified
in
section
423B.6,
subsection
1.
7
10.
Notwithstanding
subsection
9
or
any
other
contrary
8
provision
of
this
chapter
,
a
local
option
sales
and
services
9
tax
shall
not
be
repealed
or
reduced
in
rate
if
obligations
are
10
outstanding
which
are
payable
as
provided
in
section
423B.9
,
11
unless
funds
sufficient
to
pay
the
principal,
interest,
and
12
premium,
if
any,
on
the
outstanding
obligations
at
and
prior
13
to
maturity
have
been
properly
set
aside
and
pledged
for
that
14
purpose.
15
Sec.
11.
Section
423B.5,
Code
2014,
is
amended
to
read
as
16
follows:
17
423B.5
Local
sales
and
services
tax.
18
1.
A
local
sales
and
services
tax
at
the
rate
of
not
more
19
than
one
percent
may
be
imposed
by
a
city
or
county
pursuant
20
to
this
chapter
shall
be
imposed
on
the
sales
price
taxed
21
by
the
state
under
chapter
423,
subchapter
II
.
A
local
sales
22
and
services
tax
shall
be
imposed
on
the
same
basis
as
the
23
state
sales
and
services
tax
or
in
the
case
of
the
use
of
24
natural
gas,
natural
gas
service,
electricity,
or
electric
25
service
on
the
same
basis
as
the
state
use
tax
and
shall
not
26
be
imposed
on
the
sale
of
any
property
or
on
any
service
not
27
taxed
by
the
state,
except
the
tax
shall
not
be
imposed
on
28
the
sales
price
from
the
sale
of
motor
fuel
or
special
fuel
29
as
defined
in
chapter
452A
which
is
consumed
for
highway
use
30
or
in
watercraft
or
aircraft
if
the
fuel
tax
is
paid
on
the
31
transaction
and
a
refund
has
not
or
will
not
be
allowed,
on
the
32
sales
price
from
the
sale
of
equipment
by
the
state
department
33
of
transportation,
or
on
the
sales
price
from
the
sale
or
use
34
of
natural
gas,
natural
gas
service,
electricity,
or
electric
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service
in
a
city
or
county
where
the
sales
price
from
the
sale
1
of
natural
gas
or
electric
energy
is
subject
to
a
franchise
2
fee
or
user
fee
during
the
period
the
franchise
or
user
fee
3
is
imposed.
A
local
sales
and
services
tax
is
applicable
4
to
transactions
within
those
incorporated
and
the
city
or
5
unincorporated
areas
area
of
the
county
where
it
is
imposed
and
6
shall
be
collected
by
all
persons
required
to
collect
state
7
sales
taxes.
However,
a
local
sales
and
services
tax
is
not
8
applicable
to
transactions
of
a
retailer
holding
a
retail
sales
9
tax
permit
at
a
place
of
business,
as
defined
in
section
423.1,
10
if
the
retailer’s
place
of
business
is
located
in
part
within
11
a
city
or
unincorporated
area
of
the
county
where
the
tax
is
12
not
imposed.
All
cities
contiguous
to
each
other
shall
be
13
treated
as
part
of
one
incorporated
area
and
the
tax
would
be
14
imposed
in
each
of
those
contiguous
cities
only
if
the
majority
15
of
those
voting
in
the
total
area
covered
by
the
contiguous
16
cities
favors
its
imposition.
In
the
case
of
a
local
sales
and
17
services
tax
submitted
to
the
registered
voters
of
two
or
more
18
contiguous
counties
as
provided
in
section
423B.1,
subsection
19
4
,
paragraph
“c”
,
all
cities
contiguous
to
each
other
shall
be
20
treated
as
part
of
one
incorporated
area,
even
if
the
corporate
21
boundaries
of
one
or
more
of
the
cities
include
areas
of
more
22
than
one
county,
and
the
tax
shall
be
imposed
in
each
of
those
23
contiguous
cities
only
if
a
majority
of
those
voting
on
the
tax
24
in
the
total
area
covered
by
the
contiguous
cities
favored
its
25
imposition.
26
2.
The
amount
of
the
sale,
for
purposes
of
determining
the
27
amount
of
the
local
sales
and
services
tax,
does
not
include
28
the
amount
of
any
state
sales
tax.
29
3.
A
tax
permit
other
than
the
state
sales
tax
permit
30
required
under
section
423.36
shall
not
be
required
by
local
31
authorities.
32
4.
If
a
local
sales
and
services
tax
is
imposed
by
a
city
or
33
county
pursuant
to
this
chapter
,
a
local
excise
tax
at
the
same
34
rate
shall
be
imposed
by
the
city
or
county
on
the
purchase
35
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price
of
natural
gas,
natural
gas
service,
electricity,
or
1
electric
service
subject
to
tax
under
chapter
423,
subchapter
2
III
,
and
not
exempted
from
tax
by
any
provision
of
chapter
3
423,
subchapter
III
.
The
local
excise
tax
is
applicable
only
4
to
the
use
of
natural
gas,
natural
gas
service,
electricity,
5
or
electric
service
within
those
incorporated
cities
and
6
unincorporated
areas
of
the
county
where
it
is
imposed
7
and,
except
as
otherwise
provided
in
this
chapter
,
shall
be
8
collected
and
administered
in
the
same
manner
as
the
local
9
sales
and
services
tax.
For
purposes
of
this
chapter
,
“local
10
sales
and
services
tax”
shall
also
include
the
local
excise
tax.
11
Sec.
12.
Section
423B.6,
subsection
1,
paragraphs
b
and
c,
12
Code
2014,
are
amended
to
read
as
follows:
13
b.
A
local
sales
and
services
tax
shall
be
repealed
only
14
on
June
30
or
December
31
but
not
sooner
than
ninety
days
15
following
the
favorable
election
if
one
is
held.
However,
a
16
local
sales
and
services
tax
shall
not
be
repealed
before
the
17
tax
has
been
in
effect
for
one
year.
At
least
forty
days
before
18
the
imposition
or
repeal
of
the
tax,
a
the
city
or
county
,
as
19
applicable,
shall
provide
notice
of
the
action
by
certified
20
mail
to
the
director
of
revenue.
21
c.
The
imposition
of
or
a
rate
change
for
a
local
sales
and
22
services
tax
shall
not
be
applied
to
purchases
from
a
printed
23
catalog
wherein
a
purchaser
computes
the
local
tax
based
on
24
rates
published
in
the
catalog
unless
a
minimum
of
one
hundred
25
twenty
days’
notice
of
the
imposition
or
rate
change
has
been
26
given
to
the
seller
from
the
catalog
and
the
first
day
of
a
27
calendar
quarter
has
occurred
on
or
after
the
one
hundred
28
twentieth
day.
29
Sec.
13.
Section
423B.6,
subsection
2,
paragraph
b,
Code
30
2014,
is
amended
to
read
as
follows:
31
b.
The
ordinance
of
a
governing
body
of
a
city
or
county
32
board
of
supervisors
imposing
a
local
sales
and
services
33
tax
shall
adopt
by
reference
the
applicable
provisions
of
34
the
appropriate
sections
of
chapter
423
.
All
powers
and
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requirements
of
the
director
to
administer
the
state
sales
tax
1
law
and
use
tax
law
are
applicable
to
the
administration
of
2
a
local
sales
and
services
tax
law
and
the
local
excise
tax,
3
including
but
not
limited
to
the
provisions
of
section
422.25,
4
subsection
4
,
sections
422.30
,
422.67
,
and
422.68
,
section
5
422.69,
subsection
1
,
sections
422.70
through
422.75
,
section
6
423.14,
subsection
1
and
subsection
2
,
paragraphs
“b”
through
7
“e”
,
and
sections
423.15
,
423.23
,
423.24
,
423.25
,
423.31
8
through
423.35
,
423.37
through
423.42
,
423.46
,
and
423.47
.
9
Local
officials
shall
confer
with
the
director
of
revenue
for
10
assistance
in
drafting
the
ordinance
imposing
a
local
sales
and
11
services
tax.
A
certified
copy
of
the
ordinance
shall
be
filed
12
with
the
director
as
soon
as
possible
after
passage.
13
Sec.
14.
Section
423B.6,
subsection
3,
paragraph
b,
Code
14
2014,
is
amended
to
read
as
follows:
15
b.
All
local
tax
moneys
and
interest
and
penalties
received
16
or
refunded
one
hundred
eighty
days
or
more
after
the
date
17
on
which
the
city
or
county
repeals
its
the
local
sales
and
18
services
tax
shall
be
deposited
in
or
withdrawn
from
the
state
19
general
fund.
20
Sec.
15.
Section
423B.7,
subsection
1,
paragraph
a,
Code
21
2014,
is
amended
to
read
as
follows:
22
a.
Except
as
provided
in
paragraph
“b”
,
the
director
shall
23
credit
the
local
sales
and
services
tax
receipts
and
interest
24
and
penalties
from
a
county-imposed
tax
to
the
county’s
account
25
in
the
local
sales
and
services
tax
fund
for
the
county
in
26
which
the
tax
was
collected
and
from
a
city-imposed
tax
under
27
section
423B.1,
subsection
2
,
to
the
city’s
account
in
the
28
local
sales
and
services
tax
fund.
If
the
director
is
unable
29
to
determine
from
which
city
or
county
any
of
the
receipts
were
30
collected,
those
receipts
shall
be
allocated
among
the
possible
31
cities
or
counties
based
on
allocation
rules
adopted
by
the
32
director.
33
Sec.
16.
Section
423B.8,
subsection
1,
paragraph
a,
Code
34
2014,
is
amended
to
read
as
follows:
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a.
The
goods,
wares,
or
merchandise
are
incorporated
into
1
an
improvement
to
real
estate
in
fulfillment
of
a
written
2
contract
fully
executed
prior
to
the
date
of
the
imposition
or
3
increase
in
rate
of
a
local
sales
and
services
tax
under
this
4
chapter
.
The
refund
shall
not
apply
to
equipment
transferred
5
in
fulfillment
of
a
mixed
construction
contract.
6
Sec.
17.
Section
423B.10,
subsection
1,
paragraph
b,
Code
7
2014,
is
amended
to
read
as
follows:
8
b.
“Eligible
city”
means
a
city
in
which
a
local
sales
and
9
services
tax
imposed
by
the
city
or
county
applies
or
a
city
10
described
in
section
423B.1,
subsection
2
,
paragraph
“a”
,
and
in
11
which
an
urban
renewal
area
has
been
designated.
12
Sec.
18.
IMPLEMENTATION.
This
Act
shall
not
affect
the
13
imposition
of
local
option
taxes
in
effect
on
the
effective
14
date
of
this
Act
and
such
taxes
shall
continue
to
be
imposed
15
until
their
repeal
pursuant
to
chapter
423B.
The
law
in
effect
16
at
the
time
of
the
repeal
governs
the
repeal
of
the
local
17
option
taxes.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
the
approval
and
imposition
of
local
22
option
taxes.
Current
Code
chapter
423B
authorizes
the
23
imposition
of
local
option
taxes,
including
a
local
option
24
sales
and
services
tax.
Currently,
such
a
proposed
tax
is
25
only
presented
to
the
voters
of
a
whole
county
upon
the
filing
26
of
a
petition
signed
by
eligible
electors
of
the
county
equal
27
in
number
to
5
percent
of
the
persons
in
the
county
who
voted
28
at
the
last
preceding
general
election
or
upon
receipt
by
the
29
county
commissioner
of
elections
of
motions
requesting
such
30
submission,
adopted
by
the
governing
bodies
of
the
cities
31
located
within
the
county
or
the
governing
body
of
the
county
32
for
the
unincorporated
area
of
the
county,
representing
at
33
least
one-half
of
the
population
of
the
county.
34
The
bill
amends
the
methods
of
seeking
presentment
of
the
35
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local
option
sales
and
services
tax
to
the
voters
of
certain
1
qualified
counties
by
allowing
the
eligible
electors
of
2
individual
cities
and
the
unincorporated
area
of
a
county
to
3
file
a
petition
for
an
election
to
be
held
in
the
petitioning
4
jurisdiction
if
such
petition
is
signed
by
eligible
electors
5
of
the
city
or
the
unincorporated
area
of
the
county,
as
6
applicable,
equal
in
number
to
5
percent
of
the
persons
in
7
the
applicable
city
or
unincorporated
area
of
the
county
who
8
voted
at
the
last
preceding
general
election.
The
bill
defines
9
“qualified
county”
to
mean
a
county
with
a
population
in
10
excess
of
400,000
or
a
county
with
a
population
of
at
least
11
60,000
but
not
more
than
70,000,
according
to
the
2010
federal
12
decennial
census.
For
those
qualified
counties,
the
bill
also
13
removes
the
requirement
that
in
order
to
have
the
local
sales
14
and
services
tax
presented
to
the
voters,
motions
must
be
15
approved
by
cities
or
the
county
for
the
unincorporated
area,
16
representing
at
least
one-half
of
the
county’s
population.
17
Instead,
the
bill
allows
individual
cities
or
the
county
for
18
the
unincorporated
area
within
a
qualified
county
to
approve
a
19
motion
for
an
election
on
the
local
sales
and
services
tax
to
20
be
held
in
only
that
jurisdiction.
21
The
bill
provides
that
in
a
qualified
county
a
city
or
the
22
board
of
supervisors
for
the
unincorporated
area
of
a
county
23
may
repeal
the
local
sales
and
services
tax
in
the
city
upon
24
adoption
of
its
own
motion
for
repeal.
25
For
those
counties
that
are
not
qualified
counties,
the
26
methods
of
seeking
presentment
of
the
local
option
sales
and
27
services
tax
to
the
voters
and
the
methods
for
repealing
such
28
a
tax
remain
the
same
as
required
under
current
Code
chapter
29
423B.
30
The
bill
strikes
special
provisions
related
to
the
approval
31
and
imposition
of
a
local
sales
and
services
tax
in
a
city
that
32
is
located
in
two
or
more
contiguous
counties.
33
The
bill
provides
that
a
local
sales
and
services
tax
is
34
not
applicable
to
transactions
of
a
retailer
holding
a
retail
35
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sales
tax
permit
at
a
place
of
business
if
the
retailer’s
place
1
of
business
is
located
in
part
within
a
city
or
unincorporated
2
area
of
the
county
where
the
tax
is
not
imposed.
3
Current
Code
chapter
423B
authorizes
the
imposition
of
a
4
local
sales
and
services
tax
at
a
rate
of
not
more
than
1
5
percent.
The
bill
requires
a
local
sales
and
services
tax,
if
6
imposed,
to
be
1
percent.
7
The
bill
provides
that
the
imposition
of
local
option
8
taxes
in
effect
on
the
effective
date
of
this
Act
shall
not
9
be
affected
by
the
bill
and
such
taxes
shall
continue
to
be
10
imposed
until
their
repeal
pursuant
to
Code
chapter
423B.
The
11
law
in
effect
at
the
time
of
the
repeal
governs
the
repeal
of
12
the
local
option
taxes.
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