The bill permits cities in Iowa to create self-supported entertainment areas, which are defined as designated zones that include cultural and entertainment establishments, food and liquor venues, and lodging providers. To establish such an area, a city council must pass an ordinance, which requires a three-fourths majority vote and a petition from at least 25% of property owners in the proposed area. The entertainment area must meet specific criteria, including an expected annual attendance of over 250,000 people and consist primarily of commercial properties or those within a historic district. The ordinance allows for an entertainment surcharge of up to 3% on retail sales within the area.

Furthermore, the bill details the administration of the surcharge, which will be managed by the Department of Revenue in accordance with state sales tax laws. It establishes a state surcharge revenue fund to collect and distribute the surcharge revenues to the cities that create these entertainment areas. The funds generated can be utilized for various purposes, such as public safety services and capital improvements within the entertainment zones. The bill also includes provisions for public hearings, appeals, and the potential dissolution of the entertainment area, ensuring that property owners have a say in the establishment and management of these designated zones.

Statutes affected:
Introduced: 423.2, 423A.5A