Iowa HF38 authorizes cities to establish entertainment areas and impose a surcharge on retail sales within those areas.

Iowa HF38 allows cities to create designated entertainment areas where they can impose a surcharge on retail sales. The bill outlines the process for establishing these areas, including public hearings and council approval. The surcharge, which cannot exceed 3%, applies to sales of food, alcoholic beverages, entertainment tickets, and lodging within the designated area. Revenues from the surcharge are deposited into a state fund and then remitted to the city for use in specific funds, such as debt service or capital improvements.

Iowa HF38 authorizes cities to establish entertainment areas and impose a surcharge on retail sales within those areas.

Iowa HF38 allows cities to create designated entertainment areas where they can impose a surcharge on retail sales. The bill outlines the process for establishing these areas, including public hearings and council approval. The surcharge, which cannot exceed 3%, applies to sales of food, alcoholic beverages, entertainment tickets, and lodging within the designated area. Revenues from the surcharge are deposited into a state fund and then remitted to the city for use in specific funds, such as debt service or capital improvements.