§ 14-164-329 - Capital improvement bonds -- Local sales and use tax -- Effective dates for imposition and termination of tax levy.
14-164-329. Capital improvement bonds -- Local sales and use tax -- Effective dates for imposition and termination of tax levy.
(a) The levy of a local sales and use tax shall not be effective until after the election has been held and the issuance of bonds has been approved by the voters and the Director of the Department of Finance and Administration has been given ninety (90) days' notice.
(b) In order to provide time for the preparations for election set forth in this section and to provide for the accomplishment of the administrative duties of the director, the following effective dates are applicable with reference to any such ordinance levying such tax:
(1) If an election challenge is not filed within thirty (30) days of the date of publication of the proclamation of the results of the election, the tax shall become effective on the first day of the first month of the calendar quarter after the expiration of the thirty-day period for challenge and after a minimum of sixty (60) days' notice has been provided by the director to sellers unless delayed as provided in subdivision (b)(3) of this section.
(2) In the event of an election contest, the tax shall be collected as prescribed in subdivision (b)(1) of this section unless enjoined by court order.
(3) (A) The municipality or county may delay the effective date of the tax.
(B) The delayed effective date shall be specified in the ordinance levying the tax and on the ballot approving the bonds or the tax, except in the event that the tax is replacing an existing tax. In such event, the ballot and the ordinance shall specify that the tax will replace the existing tax and that the effective date of the tax will be the day following the date the existing tax expires.
(C) The delayed effective date shall in any event be the first day of the first month of the calendar quarter.
(D) The effective date shall not be delayed for more than twelve (12) months, unless the tax replaces an existing tax.
(c) (1) (A) If bonds are issued, the tax shall be abolished when there are no bonds outstanding to which such tax collections are pledged as provided in this subchapter.
(B) If bonds have not been issued, the tax shall be abolished when it is determined by a roll call vote of two-thirds (2/3) of all the members elected to the municipality's or county's governing body that the bonds approved by the voters shall not be issued.
(C) Bonds shall not be deemed to be outstanding hereunder if the trustee for the bondholders provides the certificate provided for in subdivision (c)(2)(A) of this section.
(2) In order to provide for the accomplishment of the administrative duties of the director and to protect the owners of the bonds, the tax shall be abolished on the first day of the calendar quarter after the expiration of ninety (90) days from the date there is filed with the director a written statement signed by the chief executive officer of the municipality or county levying the tax and by the trustee for the bondholders, if a trustee is serving in such capacity, identifying the tax and the bonds, in which either:
(A) The trustee certifies that the trustee has or will have sufficient funds set aside to pay the principal of and interest on the bonds when due at maturity or at redemption before maturity and the municipality or county levying the tax certifies that the tax is not pledged to any other bonds of such municipality or county; or
(B) The municipality or county levying the tax certifies that there are no longer any bonds outstanding payable from tax collections.
(3) In the case of subdivision (c)(2)(B) of this section, there shall be attached to the written statement proof satisfactory to the director that there are no longer any bonds outstanding payable from tax collections.
(4) The chief executive officer of the municipality or county shall file the appropriate certificate not later than sixty (60) days after the bonds have been paid in full or funds to make payment in full have been set aside with the trustee.
(d) After one (1) year has elapsed after the effective date of the abolishment of the tax, the Treasurer of State shall remit the balance in any suspense account maintained by the Treasurer of State in connection therewith directly to the municipality or county levying the tax.