42-6052. Municipal tax code commission; members; meetings; model city tax code; official copy; review and comment on proposed amendments; annual report

A. The municipal tax code commission is established consisting of the director of the department of revenue, or the director's representative, as an ex officio member without the power to vote and nine members who are mayors or members of the governing bodies of cities or towns that have adopted the model city tax code and who are appointed as follows:

1. Five members appointed by the governor.

2. Two members appointed by the president of the senate.

3. Two members appointed by the speaker of the house of representatives.

B. Not more than two members of the commission may be from the same city or town. The commission shall annually elect a chairman from among its members. Appointive members shall serve terms of three years.  Members of the commission are not eligible for compensation for their services.

C. The commission shall meet on the call of the chairman, in response to any proposed amendment pursuant to subsection E of this section or at the request of four or more of its members.

D. The department of revenue shall:

1. Maintain the official copy of the model city tax code.

2. Post the official copy on the department's official website.

3. Maintain a mailing list for meeting notices, send required notices and provide staff support and meeting accommodations for the commission.  All notices under this paragraph may be delivered by either physical mail or email and shall be delivered within the time frames prescribed in this section.

E. At least sixty days before the commission adopts any amendment to the model city tax code, a city or town, a taxpayer or the department of revenue shall submit the proposed amendment to the commission to review and consider for adoption. The department shall post the proposed amendment, meeting notice and meeting agenda on the department's official website at least thirty days before the informational public hearing required under subsection F of this section and at least sixty days before the public hearing for consideration to adopt the proposed amendment required under subsection G of this section.

F. At least thirty days after receiving a proposed amendment, and at the request of a city or town, a taxpayer or the department of revenue, the commission shall hold an informational public hearing to review and receive comments on the proposed amendment.  The department shall provide a legal analysis of the proposed amendment to the commission at the hearing. The commission shall consider any information and testimony presented at the hearing, may require changes to the language presented at the hearing and may require changes to the language presented by the city, town, taxpayer or department. The department shall post the proposed amendment with any required changes on the department's official website not later than five days after the date of the informational public hearing.

G. At least sixty days after the commission receives a proposed amendment pursuant to subsection E of this section, the commission shall hold a public hearing to consider any information and testimony presented at the informational public hearing, if one was requested under subsection F, and to consider adopting the proposed amendment. If the commission adopts the proposed amendment, the department of revenue shall update the official copy of the model city tax code to reflect the amendment adopted by the commission not later than ten days after the commission adopts the amendment. Any changes that are not reflected in the official copy posted on the department's official website are void and have no effect.

H. All cities and towns shall adopt the changes to the model city tax code adopted by the commission.  This requirement does not prohibit the commission from recommending a model or local option or changes to a model or local option contained in the model city tax code to be adopted only by those cities and towns that choose the option or from approving a change submitted by a city or town that does not apply to any other city or town. The city or town may not adopt an amendment to any provision of the model city tax code unless the commission has adopted the amendment.

I. Changes in rates of tax are not subject to review, but within ten days after passage of an ordinance imposing a rate change:

1. The city or town imposing a new or different tax rate shall notify the commission and the department of revenue.  Failure of a city or town to notify the commission and the department renders the new or different tax rate void and of no effect. For the purposes of this paragraph, "new or different tax rate" means the adoption or repeal of a model or local option or any change that increases the amount of tax a taxpayer must pay to a city or town. 

2. The official copy of the model city tax code must reflect the change.  Any change not reflected in the official copy of the model city tax code is void and has no effect.

J. The commission shall prepare a report and deliver the report to the governor, the president of the senate and the speaker of the house of representatives before January 1 each year.