Iowa 2025-2026 Regular Session

Iowa House Bill HF760

Introduced
3/5/25  

Caption

A bill for an act authorizing cities to establish self-supported entertainment areas.(Formerly HF 38; See HF 1051.)

Impact

The passage of HF 760 could significantly impact municipal revenue streams and local control over economic development strategies. Cities forming entertainment areas would be able to enhance funding for public improvements and services, potentially benefiting local businesses and attracting visitors. The self-supported structure provides a way for cities to generate revenue without imposing a broader tax burden, thus aligning the financial support directly with the entertainment sector.

Summary

House File 760 is a legislative proposal that permits cities to establish self-supported entertainment areas. The bill outlines a structured process whereby a city can create such an area to impose an entertainment surcharge on specific types of retail sales, including food, beverages, tickets for entertainment events, and lodging. The initial step requires a petition from property owners, representing at least 25% of the proposed area, followed by a public hearing, and eventual ordinance adoption by the city council. The surcharge, capped at 3%, is billed separately and is applied on top of existing state sales taxes.

Contention

However, there are notable contentions surrounding the bill. Some stakeholders feel that the imposition of a surcharge may deter visitors or consumers, negatively impacting business. Furthermore, there are concerns about the decision-making powers given to city councils and whether local citizens have adequate representation if they oppose the establishment of an entertainment area. The requirement for a unanimous vote if a significant remonstrance is filed by property owners could also lead to complicated political dynamics within municipalities.

Companion Bills

IA HF38

Similar To A bill for an act authorizing cities to establish self-supported entertainment areas.(See HF 760, HF 1051.)

IA HF1051

Similar To A bill for an act authorizing cities to establish self-supported tourism improvement districts.(Formerly HF 760, HF 38.)

Previously Filed As

IA HF412

A bill for an act authorizing cities to establish self-supported entertainment areas.(Formerly HF 42.)

IA HF42

A bill for an act authorizing cities to establish self-supported entertainment areas.(See HF 412.)

IA SF309

A bill for an act authorizing cities to establish self-supported entertainment areas.

IA HF494

A bill for an act establishing the professional counselors licensure compact.(Formerly HF 90; See HF 671.)

IA HF559

A bill for an act establishing an agriculture education grant program within the department of education and making appropriations.(Formerly HF 389.)

IA HF2444

A bill for an act establishing license fees for food processing plants.(See HF 2682.)

IA HF671

A bill for an act establishing the professional counselors licensure compact. (Formerly HF 494, HF 90.) Effective date: 07/01/2023.

IA HF722

A bill for an act expanding the sales and use tax exemption allowed for nonprofit blood centers.(Formerly HSB 247; See HF 2628.)

IA HF278

A bill for an act providing for the issuance of annual statewide licenses for certain establishments offering food for sale, including license fees, and including effective date provisions.(Formerly HF 80; See HF 661.)

IA HF2541

A bill for an act creating a vacant school building demolition grant program and fund and including contingent effective date provisions.(Formerly HF 706, HF 339, HF 153.)

Similar Bills

IA HF38

A bill for an act authorizing cities to establish self-supported entertainment areas.(See HF 760, HF 1051.)

IA HF42

A bill for an act authorizing cities to establish self-supported entertainment areas.(See HF 412.)

IA HF412

A bill for an act authorizing cities to establish self-supported entertainment areas.(Formerly HF 42.)

IA SF309

A bill for an act authorizing cities to establish self-supported entertainment areas.

MN HF1989

Ticket sale disclosure required, ticket sale conduct prohibited, data disclosure to the commissioner of commerce required, and enforcement allowed by the commissioner of commerce.

OR HB3167

Relating to regulating sales of admission tickets to entertainment events.

CT HB05427

An Act Concerning The Admissions Tax.

IL HB0825

REVENUE-TECH