Relating to local government revenues by authorizing cities or counties to impose a local entertainment surcharge, and making an appropriation

This bill relates to local government revenues by authorizing cities or counties to impose a local entertainment surcharge, and makes an appropriation. The bill authorizes a city, county, or an area within two or more municipalities pursuant to a Code chapter 28E agreement (municipality) to establish a local entertainment district (district) by ordinance or, in the case of a Code chapter 28E agreement by resolution, for the purpose of imposing a local entertainment surcharge (surcharge). Under the bill, to be established as a district, the proposed area shall meet all of the following requirements: the combined attendance at cultural or entertainment establishments, food establishments, and liquor establishments within the proposed district exceeded 500,000 persons during the previous calendar year, or the expected attendance forecast at such establishments is expected to exceed 500,000 persons per calendar year within two years; the proposed area consists of contiguous parcels and does not exceed acres; the proposed area does not include the entire incorporated area of the city; and the proposed area is not located in whole or in part within another district. The bill defines “cultural or entertainment establishment” to mean a sporting or concert event venue, performing arts theater, movie theater, museum, convention hall, or enclosed shopping mall. The bill defines “food establishment” to mean a “food establishment” licensed pursuant to Code chapter 137F, at which food is served or sold at retail.1. The bill defines “liquor establishment” to mean a licensed premises in or at which alcoholic beverages are sold at retail. If the governing body of a municipality imposes a surcharge pursuant to the bill, the surcharge shall be at a rate not to exceed percent, which shall be imposed upon the following within the district: the retail sales price of food or alcoholic beverages sold at a cultural or entertainment establishment, food establishment, or liquor establishment; the sales price of all sales of entertainment tickets sold at a cultural or entertainment establishment; or the sales price for the renting of any lodging.2(3).2.5. The bill specifies that the surcharge shall be in addition to the state sales tax imposed pursuant to Code chapter 423, subchapter II, the state-imposed and locally imposed hotel and motel tax pursuant to Code chapter 423A, or the local sales and services tax imposed pursuant to Code chapter 423B. The bill establishes a process to adopt or repeal the surcharge. A surcharge shall be imposed either on January or July following notification of the director of revenue but not sooner than days following the passage of the ordinance or resolution imposing the rate of the surcharge and not sooner than days following notice to the sellers in the local entertainment district. For a surcharge adopted by a resolution, the Code chapter 28E agreement shall govern the repeal of the surcharge. A surcharge adopted by resolution and governed by a Code chapter 28E agreement may be repealed upon the majority vote of persons in one of the municipalities after the resolution has been in effect for one year. For a surcharge adopted by ordinance, a surcharge shall be repealed only on June or December but no sooner than days following the repeal of the ordinance. A surcharge adopted by ordinance may also be repealed by petition upon the majority vote of persons in the municipality beginning days after adoption of the ordinance. The bill specifies the director of the department of revenue shall administer the surcharge as nearly as possible in conjunction with the administration of the state sales tax. The bill specifies that numerous administrative and enforcement laws relating to the sales tax apply to surcharges imposed under the bill. The bill requires each municipality to assist the department in identifying new establishments required to impose the surcharge in the district. The bill creates a state surcharge revenue fund in the state treasury under the control of the department of revenue consisting of surcharge revenues collected within each local entertainment district. The bill creates a local entertainment district account for each municipality creating a district. The bill requires the revenues be deposited into the appropriate district account. All revenues in each district account within the state surcharge revenue fund shall be remitted quarterly by the department to the municipality or municipalities that established the district for deposit in the general fund of the municipality.7.3A(3)(b), (c), (e), (f), or (g).