HomeMy WebLinkAboutA002 - Information Regarding Implementing Local Sales and Service Taxr
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8/6/85
CITY OF AMES , IOWA
LOCAL SALES AND SERVICE TAX
A local sales and services tax may be imposed following a County
Wide Election. If the question of the imposition of the tax receives
a favorable vote in whole county , that tax will be imposed , but only
in each City in which the question received a favorable vote . Cities
contiguous to each other are treated differently .
RATE : The rate of the local sales and service tax shall be a
rate of not more than one percent ( 1%) of the gross re-
ceipts taxed by the state ' s sales and services tax.
PURPOSE : May be expended for any lawful purpose of the City .
MECHANICS TO IMPLEMENT LOCAL SALES AND SERVICE TAX
ELECTION : - State General
TIME : - Special election for County held at the time of
City regular election .
PROCEDURE TO COUNTY BOARD OF SUPERVISORS
APPEAR ON BALLOT:
Petition by Electorate .
Signed by electors or whole County equal to
five (5) percent of persons in whole County
who voted in last preceding State General
Election.
Motion or Motion by Governing Bodies of City-Cities
Representing at .least one-half (z) of population
of County .
NOTE: Motion creases to be valid at time of holding
election of members of the governing body which
adopted the motion.
County Commissioner shall keep a file on all
motions received , and upon reaching the popu-
lation requirements , shall publish notice of
ballot proposition .
PUBLICATION : At least 60 days prior to date of election .
p • 2
Local Sales and Service Tax (Continued)
BALLOT : Specify : Type of Tax
Rate of Tax
Date of Imposition
NOTIFICATION : Within ten ( 10) days of election governing
body , presumably the County Board of Supervisors ,
shall give written notice of result of election by
written notice to Director of Revenue .
In addition , the bill requires that the notice: be
by certified mail by the County at least forty (40)
days before imposition of the tax .
APPLICATION
OF TAX : Applies to the unincorporated areas of the
County and to cities of the County in which a major-
ity of those voting in the respective area favor its
imposition. All cities contiguous to each other shall
be treated as part of one incorporated area.
An ordinance shall be prepared and shall adopt by Re-
ference Applicable Provisions , Chapter 22 , Code of Iowa .
DATES : Shall be imposed either January 1 , April. 1 , July 1
or October 1 , following notification to Director of
Revenue .
REMITTANCE : At least quarterly .
FORMULA : 1 . 75% of basis of County population.
a - To County a pro-rata based on percentage of
population in unincorporated areas where tax
imposed .
b - To each City a pro-rates based on percentage
of City ' s population residing in County where
tax imposed .
2 . 25% of basis of sum of property tax dollars levied
July 1 , 1982 - June 30 , 1985 (3 year period) .
a - To County a pro-rata based upon the percentage
of the total property tax dollars levied by the
Board of Supervisors during the 3 year period .
b - To each City where tax imposed a pro-rata share
upon the percentage of property tax dollars
levied by the City during the 3 year period of
the above total property tax dollars levied by
the Board of Supervisors and each City where the
tax was imposed during the 3 year period .