Text: S05601                            Text: S05603
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Senate Amendment 5602

Amendment Text

PAG LIN
  1  1    Amend the Palmer et al. amendment, S-5580, to the
  1  2 House amendment, S-5574, to Senate File 2449, as
  1  3 amended, passed, and reprinted by the Senate, as
  1  4 follows:
  1  5    #1.  Page 26, by inserting after line 24 the
  1  6 following:  
  1  7                      "DIVISION    
  1  8    Sec.    .  Section 75.1, Code 1995, is amended to read as
  1  9 follows:
  1 10    75.1  BONDS – ELECTION – VOTE REQUIRED.
  1 11    1.  When a proposition to authorize an issuance of bonds by
  1 12 a county, township, school corporation, city, or by any local
  1 13 board or commission, is submitted to the electors, such the
  1 14 proposition shall not be deemed carried or adopted, anything
  1 15 in the statutes to the contrary notwithstanding, unless is
  1 16 adopted if the vote in favor of such authorization the
  1 17 proposition is equal to at least sixty percent of the total
  1 18 vote cast for and against said the proposition at said the
  1 19 election.
  1 20    2.  Notwithstanding subsection 1, if the annual levy of
  1 21 property tax to pay principal and interest on bonds issued by
  1 22 a county, school corporation, or city is to be offset with
  1 23 revenue from a local income surtax pursuant to section 76.21,
  1 24 the proposition shall so state and the proposition is adopted
  1 25 if the vote in favor of the proposition is equal to a majority
  1 26 of the total vote cast for and against the proposition at the
  1 27 election.  However, a bond issuance proposition proposing
  1 28 imposition of an income surtax shall not be presented to the
  1 29 electors if in the first year the income surtax is imposed the
  1 30 total of all income surtaxes authorized by law and imposed in
  1 31 that year on any taxpayer in the political subdivision
  1 32 imposing the surtax would exceed twenty percent.  Upon request
  1 33 of the governing authority, the department of management shall
  1 34 certify the cumulative rate of income surtax being imposed in
  1 35 the political subdivision.
  1 36    3.  All ballots cast and not counted as a vote for or
  1 37 against the proposition shall not be used in computing the
  1 38 total vote cast for and against said the proposition.
  1 39    4.  When a proposition to authorize an issuance of bonds
  1 40 has been submitted to the electors under this section and the
  1 41 proposal fails to gain approval by the required percentage of
  1 42 votes, such proposal, or any proposal which incorporates any
  1 43 portion of the defeated proposal, shall not be submitted to
  1 44 the electors for a period of six twelve months from the date
  1 45 of such regular or special election.
  1 46    Sec.    .  Section 76.1, Code 1995, is amended to read as
  1 47 follows:
  1 48    76.1  MANDATORY RETIREMENT.
  1 49    Hereafter issues Issues of bonds of every kind and
  1 50 character by counties, cities, and school corporations shall
  2  1 be consecutively numbered.  The annual levy of property tax,
  2  2 or combination of property tax levy and income surtax imposed
  2  3 as provided in section 76.19, shall be sufficient to pay the
  2  4 interest and approximately such that portion of the principal
  2  5 of the bonds as will retire them in a period not exceeding
  2  6 twenty twenty-two years from date of issue.  Each issue of
  2  7 bonds shall be scheduled to mature serially in the same order
  2  8 as numbered.
  2  9    Sec.    .  Section 76.2, Code 1995, is amended to read as
  2 10 follows:
  2 11    76.2  MANDATORY LEVY – OBLIGATIONS IN ANTICIPATION OF
  2 12 LEVY.
  2 13    The governing authority of these political subdivisions
  2 14 before issuing bonds shall, by resolution, provide for the
  2 15 assessment of an annual levy upon all the taxable property in
  2 16 the political subdivision, or the assessment of an annual
  2 17 property tax levy and imposition of an income surtax under
  2 18 section 76.19, sufficient to pay the interest and principal
  2 19 and interest of the bonds within a period named not exceeding
  2 20 twenty years that provided in section 76.1.  A certified copy
  2 21 of this resolution shall be filed with the county auditor or
  2 22 the auditors of the counties in which the political
  2 23 subdivision is located; and the filing shall make it a duty of
  2 24 the auditors to enter annually this levy for collection from
  2 25 the taxable property within the boundaries of the political
  2 26 subdivision until funds are realized to pay the bonds in full.
  2 27 The property tax levy shall continue to be made against
  2 28 property that is severed from the political subdivision and
  2 29 the income surtax shall continue to be imposed upon the
  2 30 residents of any area severed from the political subdivision
  2 31 after the filing of the resolution until funds are realized to
  2 32 pay the bonds in full.
  2 33    If the a resolution which does not include imposition of an
  2 34 income surtax is filed prior to April 1, or May 1, if the
  2 35 political subdivision is a school district, the annual levy
  2 36 shall begin with the tax levy for collection commencing July 1
  2 37 of that year.  If the resolution is filed after April 1, or
  2 38 May 1, in the case of a school district, or if the resolution
  2 39 includes imposition of an income surtax, the annual property
  2 40 tax levy shall begin with the tax levy for collection in the
  2 41 next succeeding fiscal year.  If the resolution includes the
  2 42 imposition of a local income surtax and it is filed with the
  2 43 department of revenue and finance prior to August 1, the
  2 44 imposition of the surtax is retroactive to January 1 of that
  2 45 calendar year.  If the resolution is filed with the department
  2 46 of revenue and finance on or after August 1, the imposition of
  2 47 the income surtax begins on January 1 of the next calendar
  2 48 year.  However, the governing authority of a political
  2 49 subdivision may adjust a levy of taxes made under this section
  2 50 for the purpose of adjusting the annual levies and collections
  3  1 and income surtax rate for property severed from the political
  3  2 subdivision, subject to the approval of the director of the
  3  3 department of management.
  3  4    If funds, including reserves and amounts available for
  3  5 temporary transfer, are found to be insufficient to pay in
  3  6 full any installment of principal or interest, a public issuer
  3  7 of bonds may anticipate the next levy of property taxes
  3  8 pursuant to this section or the imposition of an income surtax
  3  9 under section 76.19 in the manner provided in chapter 74,
  3 10 whether the taxes so anticipated are to be collected in the
  3 11 same or a future fiscal year.
  3 12    To further secure the payment of the bonds, the governing
  3 13 authority shall, by resolution, provide for the assessment of
  3 14 an annual levy of a standby tax upon all taxable property
  3 15 within the political subdivision.  A copy of the resolution
  3 16 shall be sent to the county auditor of each county in which
  3 17 the political subdivision is located.  The revenues from the
  3 18 standby tax shall be deposited in a special fund and shall be
  3 19 expended only for the payment of principal and interest on the
  3 20 bonds issued as provided in this section, when the revenue
  3 21 from an income surtax as provided in section 76.19 is
  3 22 insufficient.  Reserves shall not be built up in this fund in
  3 23 anticipation of a projected default.  The governing authority
  3 24 shall adjust the annual standby property tax levy for each
  3 25 year to reflect the amount of revenues in the special fund and
  3 26 the amount of principal and interest which is due in that
  3 27 year.
  3 28    Sec.    .  Section 76.4, Code 1995, is amended to read as
  3 29 follows:
  3 30    76.4  PERMISSIVE APPLICATION OF FUNDS.
  3 31    Whenever If the governing authority of such a political
  3 32 subdivision shall have has on hand funds derived from any
  3 33 other a source other than taxation which may be appropriated
  3 34 to the payment either of interest or principal or interest, or
  3 35 both principal and interest of such bonds, such the funds may
  3 36 be so appropriated and used and the property tax levy and
  3 37 income surtax rate, if imposed, for the payment of the bonds
  3 38 correspondingly reduced.
  3 39    Sec.    .  Section 76.7, Code 1995, is amended to read as
  3 40 follows:
  3 41    76.7  PARTICULAR BONDS AFFECTED – PAYMENT.
  3 42    Counties, cities, and school corporations may at any time
  3 43 or times extend or renew any legal indebtedness or any part
  3 44 thereof of the indebtedness they may have represented by bonds
  3 45 or certificates where such the indebtedness is payable from a
  3 46 limited annual property tax or from a voted annual property
  3 47 tax, or from an income surtax imposed under section 76.19, and
  3 48 may by resolution fund or refund the same legal indebtedness
  3 49 and issue bonds therefor running not more than twenty years to
  3 50 be known as funding or refunding bonds, and make provision for
  4  1 the payment of the principal and interest thereof from the
  4  2 proceeds of an annual property tax, or annual property tax and
  4  3 income surtax, for the period covered by such the bonds
  4  4 similar to the tax authorized by law or by the electors for
  4  5 the payment of the indebtedness so extended or renewed.
  4  6    Sec.    .  NEW SECTION.  76.19  INCOME SURTAX.
  4  7    1.  An income surtax may be imposed by a political
  4  8 subdivision as provided in this section, but only if
  4  9 authorized by the electors as provided in section 75.1.
  4 10    2.  The income surtax shall be imposed upon state income
  4 11 taxes computed under section 422.5, less credits allowed in
  4 12 sections 422.11A, 422.11B, 422.11C, 422.12, and 422.12B, and
  4 13 shall be imposed upon the state income tax for each calendar
  4 14 year, or for a taxpayer's fiscal year ending during the second
  4 15 half of that calendar year or the first half of the succeeding
  4 16 calendar year, and shall be imposed on all taxpayers residing
  4 17 in the political subdivision on the last day of the applicable
  4 18 tax year, and on taxpayers residing in areas severed from the
  4 19 political subdivision as provided in section 76.2.
  4 20    3.  The income surtax shall be imposed to collect an amount
  4 21 that is equivalent to sixty percent of the sum of the prin-
  4 22 cipal and interest of the bonds over the life of the bonds.
  4 23 The rate of the income surtax may be adjusted in any year for
  4 24 the sole purpose of ensuring that an amount equivalent to
  4 25 sixty percent of the principal and interest over the life of
  4 26 the bonds is collected.
  4 27    4.  At the time of the annual levy under section 76.2, the
  4 28 governing authority of the political subdivision shall also
  4 29 provide in the resolution for the imposition of the income
  4 30 surtax and shall certify to the department of management such
  4 31 sum expressed in dollars.  The department shall determine the
  4 32 rate of income surtax to be imposed based upon the most recent
  4 33 available figures from state income taxes paid by taxpayers
  4 34 residing in the political subdivision.  The department shall
  4 35 continue to make such calculations and certify the income
  4 36 surtax rate to the county auditor or the auditors of the
  4 37 counties in which the political subdivision is located with
  4 38 adjustments as provided in this section until the principal
  4 39 and interest on the bonds are paid in full.  On or before
  4 40 November 1 of each year in which the income surtax is
  4 41 collected the director of revenue and finance shall deposit
  4 42 with the treasurer of the political subdivision the entire
  4 43 amount of income surtax collected from taxpayers residing in
  4 44 the political subdivision.
  4 45    5.  The costs of administration shall be determined by the
  4 46 department of revenue and finance, and shall be based on a
  4 47 share of the total cost of administering the department, in
  4 48 the same proportion as the amount of income surtax collected
  4 49 is to the amount of state income taxes collected.
  4 50    6.  The director of revenue and finance shall administer
  5  1 the income surtax imposed under this chapter and sections
  5  2 422.4, 422.20 to 422.31, 422.68, and 422.72 to 422.75 shall
  5  3 apply with respect to administration of the income surtax.
  5  4    Sec.    .  NEW SECTION.  76.20  INCOME TAX RETURNS.
  5  5    An income surtax imposed under section 76.19 shall be made
  5  6 a part of the Iowa individual income tax return subject to the
  5  7 conditions and restrictions set forth in section 422.21.  The
  5  8 director of revenue and finance shall provide on income tax
  5  9 returns a requirement that each person required to file a re-
  5 10 turn numerically identify the city of residence of the tax-
  5 11 payer and the merged area in which the taxpayer resides.
  5 12    Sec.    .  NEW SECTION.  76.21  PROPERTY TAX CREDIT –
  5 13 AGRICULTURAL AND RESIDENTIAL PROPERTY.
  5 14    Local income surtax revenues collected under section 76.19
  5 15 shall be used to offset the annual levy of property tax on
  5 16 property assessed as agricultural or residential property.
  5 17 The surtax shall be distributed in the following manner:
  5 18    Upon receipt of the revenues collected from the income
  5 19 surtax, the county treasurer shall notify the county auditor
  5 20 of the amount of income surtax revenues received.  The auditor
  5 21 shall determine the amount to be credited to each parcel of
  5 22 real property located in the political subdivision and
  5 23 assessed as agricultural or residential, and shall enter such
  5 24 amount upon the tax lists as a credit against the tax levied
  5 25 on each parcel of real property assessed as agricultural or
  5 26 residential.  The county treasurer shall show on each tax
  5 27 receipt the amount of tax credit to be applied against
  5 28 property taxes payable in the fiscal year following the year
  5 29 in which the surtax was collected for each parcel of real
  5 30 property assessed as agricultural or residential.  In case of
  5 31 change of ownership, the credit shall remain with the parcel.
  5 32    The amount of the credit funded by revenues from the income
  5 33 surtax imposed under section 76.19 shall be an amount equal to
  5 34 a pro rata share based upon the ratio of the taxable value of
  5 35 each parcel to receive the credit to the total taxable value
  5 36 of the property to receive the credit.
  5 37    Sec.    .  NEW SECTION.  76.22  DESIGNATION OF TAX.
  5 38    An income surtax imposed under section 76.19 by a school
  5 39 district shall be designated as a school debt service income
  5 40 surtax, an income surtax imposed by a merged area shall be
  5 41 designated as a merged area debt service income surtax, an
  5 42 income surtax imposed under section 76.19 by a city shall be
  5 43 designated a city debt service income surtax, and an income
  5 44 surtax imposed under section 76.19 by a county shall be
  5 45 designated a county debt service income surtax.
  5 46    Sec.    .  Section 260C.21, Code 1995, is amended to read as
  5 47 follows:
  5 48    260C.21  ELECTION TO INCUR INDEBTEDNESS.
  5 49    1.  No indebtedness shall be incurred under section 260C.19
  5 50 until authorized by an election.  A proposition to incur
  6  1 indebtedness and issue bonds for community college purposes
  6  2 shall be deemed carried adopted in a merged area if approved
  6  3 by a sixty percent majority of all voters voting on the
  6  4 proposition in the area.  However, if the board elects to
  6  5 offset the annual property tax levy with revenues from a local
  6  6 income surtax pursuant to section 76.21, the ballot
  6  7 proposition to authorize the issuance of the bonds shall be
  6  8 submitted to the electorate pursuant to section 75.1,
  6  9 subsection 2.
  6 10    2.  Notwithstanding subsection 1, if the costs of utilities
  6 11 are paid by a community college with funds derived from the
  6 12 levy authorized under section 260C.22, the community college
  6 13 may use the general fund moneys that would have been used to
  6 14 pay the costs of utilities for capital expenditures, may
  6 15 invest the funds, or may incur indebtedness without an
  6 16 election, provided that the payments on the indebtedness
  6 17 incurred, and any interest on the indebtedness, can be made
  6 18 using general funds of the community college and the total
  6 19 payments on the principal and interest on the indebtedness do
  6 20 not exceed the amount of the costs of the utilities.
  6 21    Sec.    .  Section 296.1, Code 1995, is amended to read as
  6 22 follows:
  6 23    296.1  INDEBTEDNESS AUTHORIZED.
  6 24    Subject to the approval of the voters thereof, school
  6 25 districts are hereby authorized to contract indebtedness and
  6 26 to issue general obligation bonds to provide funds to defray
  6 27 the cost of purchasing, building, furnishing, reconstructing,
  6 28 repairing, improving or remodeling a schoolhouse or
  6 29 schoolhouses and additions thereto, gymnasium, stadium, field
  6 30 house, school bus garage, teachers' or superintendent's home
  6 31 or homes, and procuring a site or sites therefor, or
  6 32 purchasing land to add to a site already owned, or procuring
  6 33 and improving a site for an athletic field, or improving a
  6 34 site already owned for an athletic field, and for any one or
  6 35 more of such purposes.  Taxes for the payment of said the
  6 36 bonds shall be levied or imposed in accordance with chapter
  6 37 76, and said the bonds shall mature within a period not
  6 38 exceeding twenty years from date of issue the period provided
  6 39 in section 76.1, shall bear interest at a rate or rates not
  6 40 exceeding that permitted by chapter 74A and shall be of such
  6 41 form as the board of directors of such the school district
  6 42 shall by resolution provide, but the aggregate indebtedness of
  6 43 any school district shall not exceed five percent of the
  6 44 actual value of the taxable property within said the school
  6 45 district, as ascertained by the last preceding state and
  6 46 county tax lists.
  6 47    Sec.    .  Section 296.6, Code 1995, is amended to read as
  6 48 follows:
  6 49    296.6  BONDS.
  6 50    If the vote in favor of the issuance of such bonds is equal
  7  1 to at least sixty percent of the total vote cast for and
  7  2 against said the proposition at said the election, the board
  7  3 of directors shall issue the same bonds and make provision for
  7  4 payment thereof of the bonds.  However, if the board of
  7  5 directors of a school district elects to offset the annual
  7  6 property tax levy with revenues from an income surtax pursuant
  7  7 to section 76.21, the ballot proposition to authorize the
  7  8 issuance of the bonds shall be submitted to the electorate
  7  9 pursuant to section 75.1, subsection 2.
  7 10    Sec.    .  Section 298.14, unnumbered paragraph 1, Code
  7 11 1995, is amended to read as follows:
  7 12    For each fiscal year, the cumulative total of the percents
  7 13 of surtax approved by the board of directors of a school
  7 14 district and collected by the department of revenue and
  7 15 finance under sections 257.21, 257.29, 279.54, and 298.2, and
  7 16 the enrichment surtax under section 442.15, Code 1989, and an
  7 17 income surtax collected by a political subdivision under
  7 18 chapter 422D, shall not exceed twenty percent.  In addition,
  7 19 if an income surtax is imposed under section 76.19, the
  7 20 cumulative total of percents of surtax imposed on any taxpayer
  7 21 in a school district under sections 76.19, 257.21, 257.29,
  7 22 279.54, 298.2, 442.15, Code 1989, and chapter 422D shall not
  7 23 exceed twenty percent in the first year in which one or more
  7 24 of these income surtaxes is imposed.
  7 25    Sec.    .  Section 298.18, unnumbered paragraph 2, Code
  7 26 1995, is amended to read as follows:
  7 27    The amount estimated and certified to apply on to pay
  7 28 principal and interest for any one year shall not exceed an
  7 29 amount that could be raised by a property tax levy equal to
  7 30 two dollars and seventy cents per thousand dollars of the
  7 31 assessed valuation of the taxable property of the school
  7 32 corporation except as hereinafter provided.
  7 33    Sec.    .  Section 298.18, unnumbered paragraph 4, Code
  7 34 1995, is amended to read as follows:
  7 35    The amount estimated and certified to apply on to pay
  7 36 principal and interest for any one year may exceed an amount
  7 37 that could be raised by a property tax levy equal to two
  7 38 dollars and seventy cents per thousand dollars of assessed
  7 39 value by the amount approved by the voters of the school
  7 40 corporation, but not exceeding four dollars and five cents per
  7 41 thousand of the assessed value of the taxable property within
  7 42 any school corporation, provided that the qualified registered
  7 43 voters of such school corporation have first approved such
  7 44 increased amount at a special election, which may be held at
  7 45 the same time as the regular school election.  The proposition
  7 46 submitted to the voters at such special election shall be in
  7 47 substantially the following form:
  7 48    Sec.    .  Section 298.18, unnumbered paragraph 6, Code
  7 49 1995, is amended to read as follows:
  7 50    Notice of the election shall be given by the county
  8  1 commissioner of elections according to section 49.53.  The
  8  2 election shall be held on a date not less than four nor more
  8  3 than twenty days after the last publication of the notice.  At
  8  4 such the election the ballot used for the submission of said
  8  5 the proposition shall be in substantially the form for
  8  6 submitting special questions at general elections.  The county
  8  7 commissioner of elections shall conduct the election pursuant
  8  8 to the provisions of chapters 39 to 53 and certify the results
  8  9 to the board of directors.  Such The proposition shall not be
  8 10 deemed carried or adopted unless the vote in favor of such the
  8 11 proposition is equal to at least sixty percent of the total
  8 12 vote cast for and against said the proposition at said the
  8 13 election.  Whenever However, if the board of directors of a
  8 14 school district elects to offset the annual property tax levy
  8 15 with revenues from an income surtax pursuant to section 76.21,
  8 16 the ballot proposition shall be submitted to the electorate
  8 17 pursuant to section 75.1, subsection 2.  If such a proposition
  8 18 has been approved by the voters of a school corporation as
  8 19 hereinbefore provided, no further approval of the voters of
  8 20 such the school corporation shall be required as a result of
  8 21 any subsequent change in the boundaries of such the school
  8 22 corporation.
  8 23    Sec.    .  Section 298.22, unnumbered paragraph 1, Code
  8 24 1995, is amended to read as follows:
  8 25    All of said The bonds shall be substantially in the form
  8 26 provided for county bonds, but subject to changes that will
  8 27 conform them to the action of the board providing therefor;
  8 28 shall run not more than twenty years mature within the period
  8 29 provided in section 76.1, and may be sooner paid if so
  8 30 nominated in the bond; bear a rate of interest not exceeding
  8 31 that permitted by chapter 74A, payable semiannually; be signed
  8 32 by the president and countersigned by the secretary of the
  8 33 board of directors; and shall not be disposed of for less than
  8 34 par value, nor issued for other purposes than this chapter
  8 35 provides.
  8 36    Sec.    .  Section 331.442, subsection 4, Code Supplement
  8 37 1995, is amended to read as follows:
  8 38    4.  The proposition of issuing bonds for a general county
  8 39 purpose is not carried or adopted unless the vote in favor of
  8 40 the proposition is equal to at least sixty percent of the
  8 41 total vote cast for and against the proposition at the
  8 42 election.  However, if the board elects to offset the annual
  8 43 property tax levy with revenues from a local income surtax
  8 44 pursuant to section 76.21, the ballot proposition to authorize
  8 45 the issuance of the bonds shall be submitted to the electorate
  8 46 pursuant to section 75.1, subsection 2.  If the proposition of
  8 47 issuing the general county purpose bonds is approved by the
  8 48 voters, the board may proceed with the issuance of the bonds.
  8 49    Sec.    .  Section 331.442, subsection 5, paragraph a,
  8 50 unnumbered paragraph 1, Code Supplement 1995, is amended to
  9  1 read as follows:
  9  2    Notwithstanding subsection 2, a board, in lieu of calling
  9  3 an election, may institute proceedings for the issuance of
  9  4 bonds for a general county purpose by causing a notice of the
  9  5 proposal to issue the bonds, including a statement of the
  9  6 amount and purpose of the bonds, the type or types of debt
  9  7 service tax to be levied or imposed to pay principal and
  9  8 interest on the bonds, and the right to petition for an
  9  9 election, to be published as provided in section 331.305 at
  9 10 least ten days prior to the meeting at which it is proposed to
  9 11 take action for the issuance of the bonds subject to the
  9 12 following limitations:
  9 13    Sec.    .  Section 331.447, subsection 1, Code Supplement
  9 14 1995, is amended to read as follows:
  9 15    1.  Taxes for the payment of general obligation bonds shall
  9 16 be levied or imposed in accordance with chapter 76, and the
  9 17 bonds are payable from the levy of unlimited ad valorem taxes
  9 18 on all the taxable property within the county through its debt
  9 19 service fund required by section 331.430 a debt service
  9 20 property tax or combination of a debt service property tax and
  9 21 a debt service local income surtax, unlimited as to amount,
  9 22 except that:
  9 23    a.  The amount estimated and certified to apply to pay on
  9 24 principal and interest for any one year shall not exceed an
  9 25 amount that could be raised by a debt service property tax
  9 26 levy equal to the maximum rate of tax, if any, provided by
  9 27 this division for the purpose for which the bonds were issued.
  9 28 If general obligation bonds are issued for different
  9 29 categories, as provided in section 331.445, the maximum rate
  9 30 of levies, if any, for each purpose shall apply separately to
  9 31 that portion of the bond issue for that category and the
  9 32 resolution authorizing the bond issue shall clearly set forth
  9 33 the annual debt service requirements with respect to each
  9 34 purpose in sufficient detail to indicate compliance with the
  9 35 rate of tax levy, if any.
  9 36    b.  The amount estimated and certified to apply to pay on
  9 37 principal and interest for any one year may only exceed an
  9 38 amount that could be raised by a debt service property tax
  9 39 levy equal to the statutory rate of levy limit, if any, by the
  9 40 amount that the registered voters of the county have approved
  9 41 at a special election, which may be held at the same time as
  9 42 the general election and may be included in the proposition
  9 43 authorizing the issuance of bonds, if an election on the
  9 44 proposition is necessary, or may be submitted as a separate
  9 45 proposition at the same election or at a different election.
  9 46 Notice of the election shall be given as specified in section
  9 47 331.305.  If the proposition includes issuing bonds and
  9 48 increasing the levy limit, it shall be in substantially the
  9 49 following form:
  9 50    Shall the county of ........, state of Iowa, be authorized
 10  1 to .......... (here state purpose of project) at a total cost
 10  2 not exceeding $...... and issue its general obligation bonds
 10  3 in an amount not exceeding $......  for that purpose, and be
 10  4 authorized to levy annually a debt service property tax (or
 10  5 debt service property tax, and income surtax to offset the
 10  6 property tax, if applicable), which will produce an amount not
 10  7 exceeding ... dollars and ...  cents per thousand dollars of
 10  8 the assessed value of the taxable property within the county
 10  9 to pay the principal of and interest on the bonds?
 10 10    If the proposition includes only increasing the levy limit
 10 11 it shall be in substantially the following form:
 10 12    Shall the county of ........, state of Iowa, be authorized
 10 13 to levy annually a debt service property tax (or debt service
 10 14 property tax and income surtax to offset the property tax, if
 10 15 applicable), which will produce an amount not exceeding ...
 10 16 dollars and ... cents per thousand dollars of the assessed
 10 17 value of the taxable property within the county to pay
 10 18 principal and interest on the bonded indebtedness of the
 10 19 county for the purpose of ..........?
 10 20    Sec.    .  Section 331.490, Code 1995, is amended to read as
 10 21 follows:
 10 22    331.490  CITIES SUBJECT TO DEBT SERVICE TAX LEVY – RATES.
 10 23    1.  If a county and city have entered into an agreement to
 10 24 create a joint special assessment district and issue county
 10 25 general obligation bonds to fund the costs of a public
 10 26 improvement benefiting that district, the county's debt ser-
 10 27 vice property tax levy for the county general obligation bonds
 10 28 shall not be levied against property located in any city
 10 29 except a city which has entered into the agreement, and, if
 10 30 applicable, the county's debt service income surtax for the
 10 31 county general obligation bonds shall not be imposed on
 10 32 taxpayers who reside in any city except a city which has
 10 33 entered into the agreement.
 10 34    2.  Counties and cities entering into an agreement for a
 10 35 joint special assessment district may provide in the agreement
 10 36 for a different rate of the county's debt service tax levy
 10 37 against property in areas of the county outside a city and
 10 38 property within the cities, and, if applicable, for a
 10 39 different rate of the county's debt service income surtax to
 10 40 be imposed on taxpayers residing outside the cities and those
 10 41 residing within each city.
 10 42    Sec.    .  Section 384.26, subsection 2, Code Supplement
 10 43 1995, is amended to read as follows:
 10 44    2.  Before the council may institute proceedings for the
 10 45 issuance of bonds for a general corporate purpose, it shall
 10 46 call a special city election to vote upon the question of
 10 47 issuing the bonds.  At the election the proposition must be
 10 48 submitted in substantially the following form:
 10 49    Shall the ............ (insert the name of the city) issue
 10 50 its bonds in an amount not exceeding the amount of $.... for
 11  1 the purpose of .........., such bonds to be payable from a
 11  2 property tax levied on all taxable property within the city
 11  3 (and income surtax to offset the property tax to be imposed on
 11  4 the state income tax of each income taxpayer residing in the
 11  5 city)?
 11  6    Sec.    .  Section 384.26, subsection 4, Code Supplement
 11  7 1995, is amended to read as follows:
 11  8    4.  The proposition of issuing general corporate purpose
 11  9 bonds is not carried or adopted unless the vote in favor of
 11 10 the proposition is equal to at least sixty percent of the
 11 11 total vote cast for and against the proposition at the
 11 12 election.  However, if the city council elects to offset the
 11 13 annual property tax levy with revenues from a local income
 11 14 surtax pursuant to section 76.21, the ballot proposition to
 11 15 authorize the issuance of the bonds shall be submitted to the
 11 16 electorate pursuant to section 75.1, subsection 2.  If the
 11 17 proposition of issuing the general corporate purpose bonds is
 11 18 approved by the voters, the city may proceed with the issuance
 11 19 of the bonds.
 11 20    Sec.    .  Section 384.26, subsection 5, paragraph a,
 11 21 unnumbered paragraph 1, Code Supplement 1995, is amended to
 11 22 read as follows:
 11 23    Notwithstanding the provisions of subsection 2, a council
 11 24 may, in lieu of calling an election, institute proceedings for
 11 25 the issuance of bonds for a general corporate purpose by
 11 26 causing a notice of the proposal to issue the bonds, including
 11 27 a statement of the amount and purpose of the bonds, the type
 11 28 or types of debt service tax to be levied or imposed to pay
 11 29 principal and interest of the bonds, together with the maximum
 11 30 rate of interest which the bonds are to bear, and the right to
 11 31 petition for an election, to be published at least once in a
 11 32 newspaper of general circulation within the city at least ten
 11 33 days prior to the meeting at which it is proposed to take
 11 34 action for the issuance of the bonds subject to the following
 11 35 limitations:
 11 36    Sec.    .  Section 384.32, Code 1995, is amended to read as
 11 37 follows
 11 38    384.32  TAX TO PAY.
 11 39    Taxes for the payment of general obligation bonds must be
 11 40 levied in accordance with chapter 76, and the bonds are
 11 41 payable from the levy of unlimited ad valorem taxes on all the
 11 42 taxable property within the city through its debt service fund
 11 43 authorized by section 384.4 a debt service property tax or a
 11 44 combination of a debt service property tax and a debt service
 11 45 income surtax, unlimited as to amount.
 11 46    Sec.    .  APPLICABILITY DATE.  This division applies to bond
 11 47 issuances approved at elections held on or after the effective
 11 48 date of this Act." 
 11 49 
 11 50 
 12  1                              
 12  2 LARRY MURPHY
 12  3 
 12  4 
 12  5                              
 12  6 WAYNE BENNETT
 12  7 
 12  8 
 12  9                              
 12 10 MICHAEL E. GRONSTAL
 12 11 SF 2449.220 76
 12 12 sc/jj

Text: S05601                            Text: S05603
Text: S05600 - S05699                   Text: S Index
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