4.__Municipal referendum.__"Municipal referendum" means a referendum conducted pursuant to this chapter by an eligible municipality.

5.__Municipal treasurer.__"Municipal treasurer" means the treasurer of an eligible municipality.

§1872.__Authority to impose local tax; administration

1.__Generally.__The legislative body of an eligible municipality may, if the legal voters of the eligible municipality give their approval in a referendum vote conducted pursuant to section 1874, and subject to the other requirements of this chapter, impose an additional 1% local option sales tax on transactions that are otherwise subject to the tax imposed by this Part, together with a local option use tax of an additional 1% on storage, use or other consumption that is otherwise subject to the tax imposed by this Part.__Any tax imposed under this chapter must receive certification by the Commissioner of Economic and Community Development pursuant to section 1875.

2.__Collection and remittance; administration by State.__ Retailers that collect the 1% sales and use tax adopted by an eligible municipality pursuant to this chapter shall transfer the revenue from that tax at the time and in the manner required by chapter 219.__Taxes imposed pursuant to this chapter are administered by the assessor and are subject to the interest, penalty and administrative provisions of Parts 1 and 3.

3.__Effective date of tax.__A local option sales and use tax approved by the voters of an eligible municipality pursuant to section 1874 is effective on the first day of the first full calendar quarter that begins more than 60 days after the date on which the assessor receives from the Commissioner of Economic and Community Development certification of the local option sales and use tax pursuant to section 1875.__If the effective date provided by this subsection does not allow the assessor to provide retailers with at least 60 days' notice of the imposition of the tax, the effective date is the beginning of the next succeeding calendar quarter; however, a tax imposed pursuant to this chapter may not take effect prior to July 1, 2004.

4.__Expiration of tax.__A local option sales and use tax imposed pursuant to this chapter expires on the first day of the calendar quarter that begins after the earliest of the following dates: