1.
a.Except as provided in paragraphs “b” and “c”, the director shall credit the local sales
andservicestaxreceiptsandinterestandpenaltiesfromacounty-imposedtaxtothecounty’s
accountinthelocalsalesandservicestaxfundforthecountyinwhichthetaxwascollected. If
thedirectorisunabletodeterminefromwhichcountyanyofthereceiptswerecollected,those
receipts shall be allocated among the possible counties based on allocation rules adopted by
the director.
b.The director shall credit the designated amount of the increase in local sales and
services tax receipts, as computed in section 423B.10, collected in an urban renewal area
of an eligible city that has adopted an ordinance pursuant to section 423B.10, subsection 2,
into a special city account in the local sales and services tax fund.
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1. a. Except as provided in paragraphs “b” and “c”, the director shall credit the local sales
andservicestaxreceiptsandinterestandpenaltiesfromacounty-imposedtaxtothecounty’s
accountinthelocalsalesandservicestaxfundforthecountyinwhichthetaxwascollected. If
thedirectorisunabletodeterminefromwhichcountyanyofthereceiptswerecollected,those
receipts shall be allocated among the possible counties based on allocation rules adopted by
the director.
b. The director shall credit the designated amount of the increase in local sales and
services tax receipts, as computed in section 423B.10, collected in an urban renewal area
of an eligible city that has adopted an ordinance pursuant to section 423B.10, subsection 2,
into a special city account in the local sales and services tax fund.
c. The director shall credit the local sales and services tax receipts and interest and
penalties from a city-imposed tax under section 423B.1, subsection 2, to the city’s account in
the local sales and services tax fund.
2. The director of revenue by the last day of each month shall transfer to each city or
county where the local option tax is imposed the amount of tax moneys remitted to the
department attributable to each city or county from the preceding month.
3. Seventy-five percent of each county’s account shall be remitted on the basis of the
county’spopulationresidingintheunincorporatedareawherethetaxwasimposedandthose
incorporated areas where the tax was imposed as follows:
a. To the board of supervisors a pro rata share based upon the percentage of the above
population of the county residing in the unincorporated area of the county where the tax was
imposed according to the most recent certified federal census.
b. To each city in the county where the tax was imposed a pro rata share based upon
the percentage of the city’s population residing in the county to the above population of the
county according to the most recent certified federal census.
c. If a subsequent certified census exists which modifies that most recent certified federal
census for a participating jurisdiction under paragraphs “a” and “b”, the computations under
paragraphs“a”and“b”shallutilizethesubsequentcertifiedcensusinthedistributionformula
under rules established by the director of revenue.
4. Twenty-five percent of each county’s account shall be remitted based on the sum
of property tax dollars levied by the board of supervisors if the tax was imposed in the
unincorporated areas and each city in the county where the tax was imposed during the
three-year period beginning July 1, 1982, and ending June 30, 1985, as follows:
a. To the board of supervisors a pro rata share based upon the percentage of the total
property tax dollars levied by the board of supervisors during the above three-year period.
b. To each city council where the tax was imposed a pro rata share based upon the
percentage of property tax dollars levied by the city during the above three-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 above three-year period.
5. Fromeachcity’saccount, thepercentofrevenuesagreedtobedistributedtothecounty
in the agreement entered into as provided in section 423B.1, subsection 2, paragraph “a”,
subparagraph(3),andparagraph“c”,shallbedepositedintotheappropriatecounty’saccount
to be remitted as provided in subsections 3 and 4. The remaining revenues in the city’s
account shall be remitted to the city council. If a county does not have an account, its percent
of the revenues shall be remitted directly to the county board of supervisors.
6. From each special city account, the revenues shall be remitted to the city council for
deposit in the special fund created in section 403.19, subsection 2, to be used by the city as
provided in section 423B.10. The distribution from the special city account is not subject to
the distribution formula provided in subsections 3, 4, and 5.
7. a. Subject to the requirement of paragraph “b”, local sales and services tax moneys
received by a city or county may be expended for any lawful purpose of the city or county,
including but not limited to expenses related to providing emergency medical services within
the applicable city or county.
b. Each city located in whole or in part in a qualified county and each qualified county
for the unincorporated area for which the imposition of the local sales and services tax in the
9 LOCAL OPTION TAXES, §423B.9
city or portion thereof or the unincorporated area, as applicable, was approved at election on
or after January 1, 2019, shall use not less than fifty percent of the moneys received from the
qualified county’s account in the local sales and services tax fund for property tax relief.