HSB 43 — A bill for an act relating to the approval and imposition of local option sales and services taxes. (See HF 655.)

Bill Text

• Introduced View text Current pdf

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The bill amends the existing law regarding the approval and imposition of local option sales and services taxes in Iowa, making specific changes to the conditions under which these taxes can be imposed.

• Section 423B.1, subsection 1

  1. A county may impose by ordinance of the board of supervisors the local vehicle tax authorized by this chapter, subject to this section. → 1. a. A county may impose by ordinance of the board of supervisors the local vehicle tax authorized by this chapter, subject to this section. b. A city or county may impose by ordinance the local sales and services tax authorized by this chapter, subject to this section.

  The amendment separates the local vehicle tax and local sales and services tax provisions, allowing both counties and cities to impose a sales and services tax.

• Section 423B.1, subsection 2, paragraph b, subparagraph (3)

  and then the city-imposed tax shall also be reduced or increased in rate or repealed in the same amount and be effective on the same date. → and then the city-imposed tax shall also be reduced or increased in rate or repealed in the same amount and be effective on the same date.

  This clarifies the relationship between county and city-imposed taxes regarding adjustments in rates.

• Section 423B.1, subsection 3

  A local option tax shall be imposed only after an election at which If a majority of those voting on the question of imposition of a local option tax favors imposition and, the local option tax shall then be imposed at the rate specified on the ballot for an unlimited period until repealed as provided in subsection 6 , paragraph “a” this chapter. → A local option tax shall be imposed only after an election at which a majority of those voting on the question of imposition of a local option tax favors imposition, and the local option tax shall then be imposed at the rate specified on the ballot for an unlimited period until repealed as provided in subsection 6, paragraph “a” of this chapter.

  This change improves the grammatical clarity of the provision concerning the imposition of a local option tax based on electoral support.

• Section 423B.1, Code 2017

  NEW SUBSECTION . 3A. For purposes of this chapter, “qualified county” means a county with a population in excess of four hundred thousand, a county with a population of at least one hundred thirty thousand but not more than one hundred thirty-one thousand, or a county with a population of at least sixty thousand but not more than seventy thousand, according to the 2010 federal decennial census.

  This addition defines 'qualified county,' which may impact tax imposition criteria.

• Section 423B.1, subsections 4 and 5

  A The county board of supervisors shall direct within thirty days the county commissioner of elections to submit the question of imposition of a local vehicle tax or a local sales and services tax to the registered voters of the incorporated and unincorporated areas of the county upon receipt of a petition, requesting imposition of a local vehicle tax or a local sales and services tax, signed by eligible electors of the whole county equal in number to five percent of the persons in the whole county who voted at the last preceding general election. → 4. a. (1) The county board of supervisors shall direct within thirty days the county commissioner of elections to submit the question of imposition of a local vehicle tax or a local sales and services tax to the registered voters of the incorporated and unincorporated areas of the county upon receipt of a petition, requesting imposition of a local vehicle tax or a local sales and services tax, signed by eligible electors of the whole county equal in number to five percent of the persons in the whole county who voted at the last preceding general election.

  This change clarifies the procedures for submitting a petition regarding the imposition of local taxes.

Action History

1. April 18, 2017

   Committee report, recommending passage.

2. March 27, 2017

   Subcommittee recommends passage.

3. February 01, 2017

   Subcommittee Meeting: 02/08/2017 8:00AM House Lounge

4. January 25, 2017

   Subcommittee: Cownie, Bergan and Isenhart.

Sponsors

• COMMITTEE ON WAYS AND MEANS · Primary

Subjects