IA HF38

Cities may establish "entertainment areas" by ordinance after receiving a petition signed by at least 25% of property owners within the proposed area, followed by a public hearing and approval by three-fourths of city council members

Entertainment areas must be contiguous parcels not exceeding 75 acres, with at least 75% of properties being cultural/entertainment establishments, food establishments, liquor establishments, or lodging providers, and expected attendance exceeding 250,000 persons annually within two years

Cities may impose an entertainment surcharge of up to 3% on retail sales of food, alcoholic beverages, entertainment tickets, and lodging within the designated area, collected in addition to existing state and local sales taxes

The Iowa Department of Revenue will administer and collect the surcharge, depositing revenues into a state surcharge revenue fund before monthly remittance to the city's entertainment area fund

Surcharge revenues may be used for debt service, capital improvements, or purposes including public safety services within the entertainment area, and the area can be dissolved by three-fourths council vote or unanimous vote if 25% of affected property owners file a remonstrance