loading…
loading…
(1)(a) Upon establishing a good life district economic development program, the city is authorized to establish a general business occupation tax as a local source of revenue. Such occupation tax may be imposed upon the businesses and users of space located within the good life district program area.
(b) The city is authorized to impose such occupation tax by ordinance of its governing body, and any occupation tax imposed pursuant to this subsection shall make a reasonable classification of businesses, users of space, or kinds of transactions for purposes of imposing such tax. The collection of a tax imposed pursuant to this subsection shall be made and enforced in such a manner as the governing body of the city shall determine in such ordinance to produce the required revenue. The governing body may provide that failure to pay the tax imposed pursuant to this subsection shall constitute a violation of the ordinance and subject the violator to a fine or other punishment as provided by such ordinance.
(2)(a) Upon establishing a good life district economic development program or upon establishing a good life district when a city is the good life district applicant, the Tax Commissioner shall allocate the state sales taxes described in subdivision (b) of this subsection, excluding the taxes on sales of aircraft, all-terrain vehicles, barges, motor vehicles, motorboats, railroad rolling stock, semitrailers, and trailers, to the city in which all or a portion of the good life district is located. Such state sales taxes shall be known as allocated sales taxes and shall constitute a local source of revenue for the city's good life district economic development program, if one has been established.
(b) After October 1, 2025, the following state sales taxes shall be allocated under this subsection:
(i) Fifty percent of the state sales taxes collected by a good life district retailer that was not located in the good life district at the time the district was established or expanded and is not a relocated good life district retailer as defined in section 77-4403 on transactions physically occurring in the portion of the good life district located within the boundaries of the city;
(ii) Fifty percent of the state sales taxes that were not allocated under subdivision (b)(i) of this subsection and that were collected on transactions physically occurring in the portion of the good life district located within the boundaries of the city by a good life district applicant or good life district retailer that was operating in the good life district when the good life district was established, not to exceed an aggregate total of five million dollars per year, except that relocated good life district retailers as defined in section 77-4403 shall exceed the five-million-dollar cap to the extent there are taxes received by the state from new businesses and additional good life district retailers, as such terms are defined in section 77-4403 , net of any allocation or refund reduction from allocated amounts within the good life district in the amount of five million dollars plus the excess allocation or reduction over five million dollars; and
(iii) Fifty percent of the state sales taxes that were not subject to allocation under subdivision (b)(i) or (ii) of this subsection or a reduced rate under subsection (7) of section 77-4405 and that were paid by a good life district applicant, project area applicant, or good life district retailer on new development costs for a new business, additional good life district retailer, or relocated good life district retailer, as such terms are defined in section 77-4403 .
(c) Allocated sales taxes shall not include any state sales taxes collected pursuant to subdivision (7)(c) of section 77-4405 .
(d) The Tax Commissioner shall remit the allocated sales taxes, after deducting the amount of refunds from allocated amounts, to the appropriate city on a monthly basis in the manner prescribed in the Local Option Revenue Act. Any refunds not covered by allocated sales taxes shall be offset from local sales tax remittance pursuant to the Local Option Revenue Act.
(e) The Tax Commissioner shall provide a detailed report to the applicable city with each such monthly remittance which includes the real estate parcel, the good life district applicant, the good life district retailer, the aggregate amount of taxable sales, and the amount of remittance attributable to the good life district applicant and each good life district retailer for such remittance period. The Tax Commissioner shall also provide each such report to the department. The details of each such report shall be kept confidential by the city, provided that the city may disclose the aggregate total of taxable sales and remittance for the entire good life district and for each project area, if any have been established.
(f) Any amount of allocated sales taxes remitted to a city under this subsection which is unencumbered and in such city's good life district economic development fund shall be subject to the recapture provisions of section 77-4406 .
(3) Upon establishing a good life district economic development program, the city may designate, by ordinance, a portion of the city's local option sales and use tax established pursuant to section 77-27,142 as a local source of revenue. The designated portion shall only include amounts collected on transactions occurring within the good life district program area and may be further restricted by the city in such ordinance or dedicated to pay such expenses as agreed to by the city and the good life district applicant.
(4) All local sources of revenue which have been established for a good life district shall remain in effect and shall not end or terminate until the associated good life district economic development program terminates.