423A.7 - LOCAL TRANSIENT GUEST TAX FUND.

        423A.7  LOCAL TRANSIENT GUEST TAX FUND.         1.  A local transient guest tax fund is created in the department      which shall consist of all moneys credited to such fund under section      423A.6.         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.         3.  Moneys received by the city from this fund shall be credited      to the general fund of the city, subject to the provisions of      subsection 4.         4.  The revenue derived from any local hotel and motel tax      authorized by section 423A.4 shall be used as follows:         a.  Each county or city which levies the tax shall spend at      least fifty percent of the revenues derived therefrom for 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 the payment of principal and interest,      when due, on bonds or other evidence of indebtedness issued by the      county or city for those recreation, convention, cultural, or      entertainment facilities; or for the promotion and encouragement of      tourist and convention business in the city or county and surrounding      areas.         b.  The remaining revenues may be spent by the city or county      which levies the tax for any city or county operations authorized by      law as a proper purpose for the expenditure within statutory      limitations of city or county revenues derived from ad valorem taxes.         c.  Any city or county which levies and collects the local      hotel and motel tax authorized by section 423A.4 may pledge      irrevocably an amount of the revenues derived therefrom for each of      the years the bonds remain outstanding to the payment of bonds which      the city or county may issue for one or more of the purposes set      forth in paragraph "a".  Any revenue pledged to the payment of      such bonds may be credited to the spending requirement of paragraph      "a".         d.  The provisions of chapter 384, division III, relating to      the issuance of corporate purpose bonds, apply to the issuance by a      city of bonds payable as provided in this section and the provisions      of chapter 331, division IV, part 3, relating to the issuance of      county purpose bonds, apply to the issuance by a county of bonds      payable as provided in this section.  The provisions of chapter 76      apply to the bonds payable as provided in this section except that      the mandatory levy to be assessed pursuant to section 76.2 shall be      at a rate to generate an amount which together with the receipts from      the pledged portion of the local hotel and motel tax is sufficient to      pay the interest and principal on the bonds.  All amounts collected      as a result of the levy assessed pursuant to section 76.2 and paid      out in the first instance for bond principal and interest shall be      repaid to the city or county which levied the tax from the first      available local hotel and motel tax collections received in excess of      the requirement for the payment of the principal and interest of the      bonds and when repaid shall be applied in reduction of property      taxes.         The amount of bonds which may be issued under section 76.3 shall      be the amount which could be retired from the actual collections of      the local hotel and motel tax for the last four calendar quarters, as      certified by the director of revenue.  The amount of tax revenues      pledged jointly by other cities or counties may be considered for the      purpose of determining the amount of bonds which may be issued.  If      the local hotel and motel tax has been in effect for less than four      calendar quarters, the tax collected within the shorter period may be      adjusted to project the collections for the full year for the purpose      of determining the amount of the bonds which may be issued.         e.  A city or county, jointly with one or more other cities or      counties as provided in chapter 28E, may pledge irrevocably any      amount derived from the revenues of the local hotel and motel tax to      the support or payment of bonds issued for a project within the      purposes set forth in paragraph "a" and located within one or      more of the participatory cities or counties or may apply the      proceeds of its bonds to the support of any such project.  Revenue so      pledged or applied shall be credited to the spending requirement of      paragraph "a".         f.  A city or county acting on behalf of an unincorporated      area may, in lieu of calling an election, institute proceedings for      the issuance of bonds under this section by causing a notice of the      proposal to issue the bonds, including a statement of the amount and      purpose of the bonds, together with the maximum rate of interest      which the bonds are to bear, and the right to petition for an      election, to be published at least once in a newspaper of general      circulation within the city or unincorporated area at least ten days      prior to the meeting at which it is proposed to take action for the      issuance of the bonds.         If at any time before the date fixed for taking action for the      issuance of the bonds a petition signed by eligible electors residing      in the city or the unincorporated area equal in number to at least      three percent of the registered voters of the city or unincorporated      area is filed, asking that the question of issuing the bonds be      submitted to the registered voters of the city or unincorporated      area, the council or board of supervisors acting on behalf of an      unincorporated area shall either by resolution declare the proposal      to issue the bonds to have been abandoned or shall direct the county      commissioner of elections to call a special election upon the      question of issuing the bonds.         The proposition of issuing bonds under this section is not      approved unless the vote in favor of the proposition is equal to a      majority of the vote cast.         If no petition is filed, or if a petition is filed and the      proposition of issuing the bonds is approved at an election, the      council or board of supervisors acting on behalf of an unincorporated      area may proceed with the authorization and issuance of the bonds.         Bonds may be issued for the purpose of refunding outstanding and      previously issued bonds under this section without otherwise      complying with this paragraph.  
         Section History: Recent Form
         2005 Acts, ch 140, §25         Referred to in § 331.427, 423A.4, 423A.6