12-194.   Same; city and county excise taxesprohibited, exceptions; rate increase for certain development excise taxes,election required.(a) Subject to the provisions of subsections (b) and (c),no city or county shall levy or impose an excise tax or a tax in the nature ofan excise, other than a retailers' sales tax and a compensating use tax,but the provisions of this section shall not beconstrued as prohibiting any city from: (1) Contracting witha utility for afixed charge based upon a percentage of gross receipts derived from the servicepermitted by grant, right, privilege or franchise to such utility;(2) imposingan occupation tax or license fee for the privilege of engaging in any business,trade, occupation or profession, or rendering or furnishing any service, butthe determination of any such license fee shall not be based upon any amountthe licensee has received from the sale or transfer of personal or realproperty, or for the rendering or furnishing of a service, or on the income ofthe licensee; (3) levying any occupation tax or licensefee imposedby such city prior to the effective date of this act; (4) retaining anydevelopment excise tax as levied or imposed by such city in existence onJanuary 1, 2006; or (5) levying an excise tax on tickets for admissions toconcerts, theatrical performances, sports contests or other similarperformances which take place on property owned by a city or county.

      (b)   No license fee describedin subsection (a)(2) shall be imposed uponany utility contractingwith and subject to a charge, described in subsection (a)(1), bysuch city.

      (c) (1)   On or after July 1, 2006, no city that has levied or imposed anytax described in subsection (a)(4) shallincrease the rate of such tax withoutthe governingbody of such city having first submitted a proposition toincrease the rate of suchdevelopment excise tax toandhaving received the approval of a majority of the electors of the city votingthereon at an election called and held therefor.

      (2)   Any city proposing toincrease therate of a development excise tax shall givenotice of its intention to submit such proposition for approval by the electorsby publishing notice of such election in a newspaper of general circulation inthe city, once each week for two consecutive weeks.The first publication shall be not less than 21 days prior to the election. Thenoticesshall state the time of the election and the rate and effective date of theproposed tax rate increase. If a majority of the electors voting thereon atsuch electionfail to approve the proposition, such proposition may be resubmitted under theconditions and in the manner provided in this act for submission of theproposition. If a majority of the electors voting thereon at such electionshall approve the increase of such tax rate, the governing body of any suchcityshall provide by ordinance for theincrease of the tax rate.

      (3)   Every election held under this act shall be conducted by the countyelection officer.

      (4)   The governing body of the city proposing to increasesuch a development excise tax shall specify thepurpose or purposes for whichtherevenue would be used, and a statement generally describing such purpose orpurposes shall be included as a part of the ballot proposition.

      History:   L. 1978, ch. 56, § 8;L. 1982, ch. 66, § 2;L. 2002, ch. 105, § 11;L. 2003, ch. 120, § 14;L. 2006, ch. 204, § 3; July 1.