1.For purposes of this section unless the context otherwise requires:
a.“Bond issuer” or “issuer” means a city, a county, or a secondary recipient.
b.“Designated portion” means the portion of the local option sales and services tax
revenues which is authorized to be expended for one or a combination of purposes under an
adopted public measure.
c.“Secondary recipient” means a political subdivision of the state which is to receive
revenues from a local option sales and services tax over a period of years pursuant to the
terms of a chapter 28E agreement with one or more cities or counties.
2.An issuer of public bonds which is a recipient of revenues from a local option sales and
servicestaximposedpursuanttothischaptermayissuebondsinanticipationofthecollection
of one or more designated po
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1. For purposes of this section unless the context otherwise requires:
a. “Bond issuer” or “issuer” means a city, a county, or a secondary recipient.
b. “Designated portion” means the portion of the local option sales and services tax
revenues which is authorized to be expended for one or a combination of purposes under an
adopted public measure.
c. “Secondary recipient” means a political subdivision of the state which is to receive
revenues from a local option sales and services tax over a period of years pursuant to the
terms of a chapter 28E agreement with one or more cities or counties.
2. An issuer of public bonds which is a recipient of revenues from a local option sales and
servicestaximposedpursuanttothischaptermayissuebondsinanticipationofthecollection
of one or more designated portions of the local option sales and services tax and may pledge
irrevocably an amount of the revenue derived from the designated portions for each of the
years the bonds remain outstanding to the payment of the bonds. Bonds may be issued only
for one or more of the purposes set forth on the ballot proposition concerning the imposition
of the local option sales and services tax, except bonds shall not be issued which are payable
§423B.9, LOCAL OPTION TAXES 10
from that portion of tax revenues designated for property tax relief. The bonds may be issued
in accordance with the procedures set forth in either subsection 3 or 4.
3. The governing body of an issuer may authorize the issuance of bonds which are
payable from the designated portion of the revenues of the local option sales and services
tax, and not from property tax, by following the authorization procedures set forth for
cities in section 384.83. Bonds may be issued for the purpose of refunding outstanding
and previously issued bonds under this subsection without otherwise complying with the
provisions of this subsection.
4. Toauthorizetheissuanceofbondspayableasprovidedinthissubsection,thegoverning
body of an issuer shall comply with all of the procedures as follows:
a. (1) A bond issuer may institute proceedings for the issuance of bonds 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 political subdivision 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.
(2) If at any time before the date fixed for taking action for the issuance of the bonds, a
petition signed by eligible electors residing within the jurisdiction seeking to issue the bonds
in a number equal to at least three percent of the registered voters of the bond issuer is
filed, asking that the question of issuing the bonds be submitted to the registered voters, the
governingbodyshalleitherbyresolutiondeclaretheproposaltoissuethebondstohavebeen
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 subsection is
not approved unless the vote in favor of the proposition is equal to at least sixty percent of
the vote cast. If a petition is not filed, or if a petition is filed and the proposition of issuing
the bonds is approved at an election, the governing body acting on behalf of the issuer 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 subsection without
otherwise complying with the provisions of this subsection.
b. The provisions of chapter 76 apply to the bonds payable as provided in this subsection,
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 designated portion
of the local option sales and services tax is sufficient to pay the interest and principal on the
bonds. Allamountscollectedasaresultofthelevyassessedpursuanttosection76.2andpaid
outinthefirstinstanceforbondprincipalandinterestshallberepaidtothebondissuerwhich
levied the tax from the first available designated portion of local option sales and services 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 designated portions of the local option sales and services
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 option sales and services
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 of the designated portion for the full year
for the purpose of determining the amount of the bonds which may be issued. The provisions
of this section constitute separate authorization for the issuance of bonds and shall prevail in
the event of conflict with any other provision of the Code limiting the amount of bonds which
may be issued or the source of payment of the bonds. Bonds issued under this section shall
not limit or restrict the authority of the bond issuer to issue bonds under other provisions of
the Code.
5. A city or county, jointly with one or more other political subdivisions as provided in
chapter 28E, may pledge irrevocably any amount derived from the designated portions of the
revenues of the local option sales and services tax to the support or payment of bonds of an
issuer, issued for one or more purposes set forth on the ballot proposition concerning the
11 LOCAL OPTION TAXES, §423B.10
imposition of the local option sales and services tax or a political subdivision may apply the
proceeds of its bonds to the support of any such purpose.
6. Bonds issued pursuant to this section shall not constitute an indebtedness within the
meaning of any constitutional or statutory debt limitation or restriction, and shall not be
subject to the provisions of any other law or charter relating to the authorization, issuance, or
sale of bonds. Bonds issued pursuant to this section are declared to be issued for an essential
public and governmental purpose. Bonds issued pursuant to this section shall be authorized
byresolutionofthegoverningbodyandmaybeissuedinoneormoreseriesandshallbearthe
dateordates, bepayableondemandormatureatthetimeortimes, bearinterestattherateor
rates not exceeding that permitted by chapter 74A, be in the denomination or denominations,
beintheform, havetherankorpriority, beexecutedinthemanner, bepayableinthemedium
of payment, at the place or places, be subject to the terms of redemption, with or without
premium, be secured in the manner, and have the other characteristics, as may be provided
by the resolution authorizing their issuance. The bonds may be sold at public or private sale
at a price as may be determined by the governing body.