128.01    TAX IMPOSED.  There is imposed a seven percent (7%) hotel and motel tax upon the gross receipts from the renting of any and all rooms, apartments or sleeping quarters in any hotel, motel, inn, public lodging house, rooming house or tourist court or in any place where sleeping accommodations are furnished to transient guests for rent, whether with or without meals, except the gross receipts from the renting of sleeping rooms in dormitories and memorial unions of all universities and colleges located in the State. 

(Code of Iowa, Sec. 422A.1)

128.02    DEFINITIONS.  “Renting” and “rent,” as used in this chapter, include any kind of direct or indirect charge for the use of rooms, apartments or sleeping quarters.  However, the tax imposed in this chapter does not apply to the gross receipts from the renting of a room, apartment or sleeping quarters while rented by the same person for a period of more than thirty-one (31) consecutive days.

(Code of Iowa, Sec. 422A.1)

128.03    EFFECTIVE DATE OF TAX.  The hotel and motel tax as set forth in this chapter shall be imposed on all gross rent receipts received after April 1, 1989.

128.04    COLLECTION.  The tax imposed in this chapter shall be remitted by the person or company liable for same to the Iowa State Director of Revenue in the manner required by State law.

(Code of Iowa, Sec. 422A.1)

128.05    RESTRICTIONS ON USE OF REVENUES.  The revenue derived from the tax imposed by this chapter shall be accounted for as follows:

1.         All revenue received by the City from the imposition of the hotel and motel tax shall be deposited in the General Fund of the City.

2.         At least fifty percent (50%) of the revenue derived from the hotel and motel tax shall be spent for the acquisition of sites for, or constructing, improving, enlarging, equipping, repairing, operating or maintaining recreational, convention, cultural or entertainment facilities, including, but not limited to, memorial buildings, halls and monuments, civic centers, convention buildings, auditoriums, coliseums and parking areas or facilities located at those recreational, convention, cultural or entertainment facilities, or the payment of principal and interest on bonds or other evidence of indebtedness issued by the City for those recreational, convention, cultural or entertainment facilities, or for the promotion and encouragement of tourist and convention business in the City and surrounding areas.

3.         The remaining revenues may be spent by the City for any lawful purpose for which revenues derived from ad valorem taxes may be expended.