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Senate File 209

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 75.1, Code 1995, is amended to read as
  1  2 follows:
  1  3    75.1  BONDS &endash; ELECTION &endash; VOTE REQUIRED.
  1  4    1.  When a proposition to authorize an issuance of bonds by
  1  5 a county, township, school corporation, city, or by any local
  1  6 board or commission, is submitted to the electors, such the
  1  7 proposition shall not be deemed carried or adopted, anything
  1  8 in the statutes to the contrary notwithstanding, unless is
  1  9 adopted if the vote in favor of such authorization the
  1 10 proposition is equal to at least sixty percent of the total
  1 11 vote cast for and against said the proposition at said the
  1 12 election.
  1 13    2.  Notwithstanding subsection 1, if principal and interest
  1 14 on bonds issued by a county, school corporation, or city are
  1 15 to be paid in part with revenue from a local income surtax
  1 16 imposed under section 76.19, the proposition shall so state
  1 17 and the proposition is adopted if the vote in favor of the
  1 18 proposition is equal to at least a majority of the total vote
  1 19 cast for and against the proposition at the election.
  1 20 However, a bond issuance proposition proposing imposition of
  1 21 an income surtax shall not be presented to the electors if in
  1 22 the first year the income surtax is imposed the total of all
  1 23 income surtaxes authorized by law and imposed in that year on
  1 24 any taxpayer in the political subdivision seeking to impose
  1 25 the surtax would exceed twenty percent.  Upon request of the
  1 26 governing authority, the department of management shall
  1 27 certify the cumulative rate of income surtax being imposed in
  1 28 the political subdivision.
  1 29    3.  All ballots cast and not counted as a vote for or
  1 30 against the proposition shall not be used in computing the
  1 31 total vote cast for and against said the proposition.
  1 32    4.  When a proposition to authorize an issuance of bonds
  1 33 has been submitted to the electors under this section and the
  1 34 proposal fails to gain approval by the required percentage of
  1 35 votes, such proposal, or any proposal which incorporates any
  2  1 portion of the defeated proposal, shall not be submitted to
  2  2 the electors for a period of six twelve months from the date
  2  3 of such regular or special election.
  2  4    Sec. 2.  Section 76.1, Code 1995, is amended to read as
  2  5 follows:
  2  6    76.1  MANDATORY RETIREMENT.
  2  7    Hereafter issues Issues of bonds of every kind and
  2  8 character by counties, cities, and school corporations shall
  2  9 be consecutively numbered.  The annual levy of property tax or
  2 10 a combination of property tax levy and income surtax imposed
  2 11 as provided in section 76.19, if authorized by an election
  2 12 held pursuant to section 75.1, shall be sufficient to pay the
  2 13 interest and approximately such portion of the principal of
  2 14 the bonds as will retire them in a period not exceeding twenty
  2 15 twenty-two years from date of issue.  Each issue of bonds
  2 16 shall be scheduled to mature serially in the same order as
  2 17 numbered.
  2 18    Sec. 3.  Section 76.2, Code 1995, is amended to read as
  2 19 follows:
  2 20    76.2  MANDATORY LEVY &endash; OBLIGATIONS IN ANTICIPATION OF
  2 21 LEVY.
  2 22    The governing authority of these political subdivisions
  2 23 before issuing bonds shall, by resolution, provide for the
  2 24 assessment of an annual levy upon all the taxable property in
  2 25 the political subdivision, or the assessment of an annual
  2 26 property tax levy and imposition of an income surtax under
  2 27 section 76.19, sufficient to pay the interest and principal
  2 28 and interest of the bonds within a period named not exceeding
  2 29 twenty years that provided in section 76.1.  A certified copy
  2 30 of this resolution shall be filed with the county auditor or
  2 31 the auditors of the counties each county in which the
  2 32 political subdivision is located; and the this filing shall
  2 33 make it a duty of the auditors auditor to enter annually this
  2 34 levy for collection from the taxable property within the
  2 35 boundaries of the political subdivision until funds are
  3  1 realized to pay the principal and interest of the bonds in
  3  2 full.  The property tax levy shall continue to be made against
  3  3 property that is severed from the political subdivision and
  3  4 the income surtax shall continue to be imposed upon the
  3  5 residents of any area severed from the political subdivision
  3  6 after the filing of the resolution until funds are realized to
  3  7 pay the principal and interest of the bonds in full.
  3  8    If the a resolution which does not include imposition of an
  3  9 income surtax is filed prior to April 1 or May 1, if the
  3 10 political subdivision is a school district, the annual
  3 11 property tax levy shall begin with the tax levy for collection
  3 12 commencing July 1 of that year.  If the resolution is filed
  3 13 after April 1 or May 1, in the case of a school district, the
  3 14 annual levy shall begin with the tax levy for collection in
  3 15 the next succeeding fiscal year.  However, the governing
  3 16 authority of a political subdivision may adjust a levy of
  3 17 taxes made under this section for the purpose of adjusting the
  3 18 annual levies and collections for property severed from the
  3 19 political subdivision, subject to the approval of the director
  3 20 of the department of management.
  3 21    If the resolution includes imposition of a local income
  3 22 surtax, the annual property tax levy shall begin with the tax
  3 23 levy for collection commencing July 1 of the calendar year
  3 24 subsequent to the calendar year in which the resolution is
  3 25 filed.  However, the governing authority of a political
  3 26 subdivision may adjust a levy of taxes made under this section
  3 27 or rate of the income surtax under section 76.19 for the
  3 28 purpose of adjusting the annual property tax levy or rate of
  3 29 the surtax and collections for property severed from the
  3 30 political subdivision, subject to the approval of the director
  3 31 of the department of management.
  3 32    If the resolution includes the imposition of a local income
  3 33 surtax and it is filed with the department of revenue and
  3 34 finance prior to August 1, the imposition of the surtax is
  3 35 retroactive to January 1 of that calendar year.  If the
  4  1 resolution is filed with the department of revenue and finance
  4  2 on or after August 1, the imposition of the income surtax
  4  3 begins on January 1 of the next calendar year.
  4  4    If funds, including reserves and amounts available for
  4  5 temporary transfer, are found to be insufficient to pay in
  4  6 full any installment of principal or interest, a public issuer
  4  7 of bonds may anticipate the next levy of property taxes
  4  8 pursuant to this section or the imposition of an income surtax
  4  9 under section 76.19 in the manner provided in chapter 74,
  4 10 whether the taxes so anticipated are to be collected in the
  4 11 same or a future fiscal year.
  4 12    To further secure the payment of the bonds, the governing
  4 13 authority shall, by resolution, provide for the assessment of
  4 14 an annual levy of a standby tax upon all taxable property
  4 15 within the political subdivision.  A copy of the resolution
  4 16 shall be sent to the county auditor of each county in which
  4 17 the political subdivision is located.  The revenues from the
  4 18 standby tax shall be deposited in a special fund and shall be
  4 19 expended only for the payment of principal and interest on the
  4 20 bonds issued as provided in this section, when the revenue
  4 21 from an income surtax as provided in section 76.19 is
  4 22 insufficient.  No reserves may be built up in this fund in
  4 23 anticipation of a projected default.  The governing authority
  4 24 shall adjust the annual standby property tax levy for each
  4 25 year to reflect the amount of revenues in the special fund and
  4 26 the amount of principal and interest which is due in that
  4 27 year.
  4 28    Sec. 4.  Section 76.4, Code 1995, is amended to read as
  4 29 follows:
  4 30    76.4  PERMISSIVE APPLICATION OF FUNDS.
  4 31    Whenever If the governing authority of such a political
  4 32 subdivision shall have has on hand funds derived from any
  4 33 other a source other than taxation which may be appropriated
  4 34 to the payment either of interest or principal or interest, or
  4 35 both principal and interest of such bonds, such the funds may
  5  1 be so appropriated and used and the property tax levy and
  5  2 income surtax rate, if imposed, for the payment of the bonds
  5  3 correspondingly reduced.
  5  4    Sec. 5.  Section 76.7, Code 1995, is amended to read as
  5  5 follows:
  5  6    76.7  PARTICULAR BONDS AFFECTED &endash; PAYMENT.
  5  7    Counties, cities, and school corporations may at any time
  5  8 or times extend or renew any legal indebtedness or any part
  5  9 thereof of the indebtedness they may have represented by bonds
  5 10 or certificates where such the indebtedness is payable from a
  5 11 limited annual property tax or from a voted annual property
  5 12 tax or from a local income surtax imposed under section 76.19,
  5 13 and may by resolution fund or refund the same legal
  5 14 indebtedness and issue bonds therefor running not more than
  5 15 twenty years to be known as funding or refunding bonds, and
  5 16 make provision for the payment of the principal and interest
  5 17 thereof from the proceeds of an annual property tax or annual
  5 18 property tax and local income surtax for the period covered by
  5 19 such the bonds similar to the tax authorized by law or by the
  5 20 electors for the payment of the indebtedness so extended or
  5 21 renewed.
  5 22    Sec. 6.  NEW SECTION.  76.19  INCOME SURTAX.
  5 23    1.  An income surtax may be imposed by a political
  5 24 subdivision as provided in this section, but only if
  5 25 authorized by the electors as provided in section 75.1.
  5 26    2.  The income surtax shall be imposed upon state income
  5 27 taxes computed under section 422.5, less credits allowed in
  5 28 sections 422.11A, 422.11B, 422.11C, 422.12, and 422.12B, and
  5 29 shall be imposed upon the state income tax for each calendar
  5 30 year, or for a taxpayer's fiscal year ending during the second
  5 31 half of that calendar year or the first half of the succeeding
  5 32 calendar year, and shall be imposed on all taxpayers residing
  5 33 in the political subdivision on the last day of the applicable
  5 34 tax year, and on taxpayers residing in areas severed from the
  5 35 political subdivision as provided in section 76.2.
  6  1    3.  The income surtax shall be imposed to collect an amount
  6  2 that is equivalent to sixty percent of the sum of the
  6  3 principal and interest of the bonds over the life of the
  6  4 bonds.  The rate of the income surtax may be adjusted in any
  6  5 year for the sole purpose of ensuring that an amount
  6  6 equivalent to sixty percent of the principal and interest over
  6  7 the life of the bonds is collected.
  6  8    4.  At the time of the annual levy under section 76.2, the
  6  9 governing authority of the political subdivision shall also
  6 10 provide in the resolution for the imposition of the income
  6 11 surtax and shall certify to the department of management such
  6 12 sum expressed in dollars.  The department shall determine the
  6 13 rate of income surtax to be imposed based upon the most recent
  6 14 available figures from state income taxes paid by taxpayers
  6 15 residing in the political subdivision.  The department shall
  6 16 continue to make such calculations and certify the income
  6 17 surtax rate to the auditor of the political subdivision with
  6 18 adjustments as provided in this section until the principal
  6 19 and interest on the bonds are paid in full.  On or before
  6 20 November 1 of each year in which the income surtax is
  6 21 collected the director of revenue and finance shall deposit
  6 22 with the treasurer of the political subdivision the entire
  6 23 amount of income surtax collected from taxpayers residing in
  6 24 the political subdivision.
  6 25    5.  The costs of administration shall be determined by the
  6 26 department of revenue and finance, and shall be based on a
  6 27 share of the total cost of administering the department, in
  6 28 the same proportion as the amount of income surtax collected
  6 29 is to the amount of state income taxes collected.
  6 30    6.  The director of revenue and finance shall administer
  6 31 the income surtax imposed under this chapter and sections
  6 32 422.4, 422.20 to 422.31, 422.68, and 422.72 to 422.75 shall
  6 33 apply with respect to administration of the income surtax.
  6 34    Sec. 7.  NEW SECTION.  76.20  PROPERTY TAX CREDIT &endash;
  6 35 AGRICULTURAL AND RESIDENTIAL PROPERTY.
  7  1    Local income surtax revenues collected under section 76.19
  7  2 shall be distributed in the following manner:
  7  3    Upon receipt of the revenues collected from the income
  7  4 surtax, the county treasurer shall notify the county auditor
  7  5 of the amount of income surtax revenues received.  The auditor
  7  6 shall determine the amount to be credited to each parcel of
  7  7 real property located in the political subdivision and
  7  8 assessed as agricultural or residential property, and shall
  7  9 enter such amount upon the tax lists as a credit against the
  7 10 tax levied on each parcel of real property assessed as
  7 11 agricultural or residential property.  The county treasurer
  7 12 shall show on each tax receipt the amount of tax credit to be
  7 13 applied against property taxes payable in the fiscal year
  7 14 following the year in which the surtax was collected for each
  7 15 parcel of real property assessed as agricultural or
  7 16 residential property.  In case of change of ownership, the
  7 17 credit shall remain with the parcel.
  7 18    The amount of the credit funded by revenues from the income
  7 19 surtax imposed under section 76.19 shall be an amount equal to
  7 20 a pro rata share based upon the ratio of the taxable value of
  7 21 each parcel to receive the credit to the total taxable value
  7 22 of the property to receive the credit.
  7 23    Sec. 8.  NEW SECTION.  76.21  INCOME TAX RETURNS.
  7 24    An income surtax imposed under section 76.19 shall be made
  7 25 a part of the Iowa individual income tax return subject to the
  7 26 conditions and restrictions set forth in section 422.21.  The
  7 27 director of revenue and finance shall provide on income tax
  7 28 returns a requirement that each person required to file a
  7 29 return numerically identify the city of residence of the
  7 30 taxpayer and the merged area in which the taxpayer resides.
  7 31    Sec. 9.  NEW SECTION.  76.22  DESIGNATION OF TAX.
  7 32    An income surtax imposed under section 76.19 by a school
  7 33 district shall be designated as a school debt service income
  7 34 surtax, an income surtax imposed by a merged area under
  7 35 section 76.19 shall be designated as a merged area debt
  8  1 service income surtax, an income surtax imposed by a city
  8  2 under section 76.19 shall be designated a city debt service
  8  3 income surtax, and an income surtax imposed by a county under
  8  4 section 76.19 shall be designated a county debt service income
  8  5 surtax.
  8  6    Sec. 10.  Section 260C.21, Code 1995, is amended to read as
  8  7 follows:
  8  8    260C.21  ELECTION TO INCUR INDEBTEDNESS.
  8  9    1.  No An indebtedness shall not be incurred under section
  8 10 260C.19 until authorized by an election as required in section
  8 11 75.1.  A proposition to incur indebtedness and issue bonds for
  8 12 community college purposes shall be deemed carried adopted in
  8 13 a merged area if approved by a sixty percent majority of all
  8 14 voters voting on the proposition in the area.  However, if the
  8 15 board elects to partially fund the bonds with revenues from a
  8 16 local income surtax, in addition to property tax revenues, the
  8 17 ballot proposition to authorize the issuance of the bonds
  8 18 shall be submitted to the electorate pursuant to section 75.1,
  8 19 subsection 2.
  8 20    2.  Notwithstanding subsection 1, if the costs of utilities
  8 21 are paid by a community college with funds derived from the
  8 22 levy authorized under section 260C.22, the community college
  8 23 may use the general fund moneys that would have been used to
  8 24 pay the costs of utilities for capital expenditures, may
  8 25 invest the funds, or may incur indebtedness without an
  8 26 election, provided that the payments on the indebtedness
  8 27 incurred, and any interest on the indebtedness, can be made
  8 28 using general funds of the community college and the total
  8 29 payments on the principal and interest on the indebtedness do
  8 30 not exceed the amount of the costs of the utilities.
  8 31    Sec. 11.  Section 296.1, Code 1995, is amended to read as
  8 32 follows:
  8 33    296.1  INDEBTEDNESS AUTHORIZED.
  8 34    Subject to the approval of the voters thereof, school
  8 35 districts are hereby authorized to contract indebtedness and
  9  1 to issue general obligation bonds to provide funds to defray
  9  2 the cost of purchasing, building, furnishing, reconstructing,
  9  3 repairing, improving or remodeling a schoolhouse or
  9  4 schoolhouses and additions thereto, gymnasium, stadium, field
  9  5 house, school bus garage, teachers' or superintendent's home
  9  6 or homes, and procuring a site or sites therefor, or
  9  7 purchasing land to add to a site already owned, or procuring
  9  8 and improving a site for an athletic field, or improving a
  9  9 site already owned for an athletic field, and for any one or
  9 10 more of such purposes.  Taxes for the payment of said the
  9 11 bonds shall be levied or imposed in accordance with chapter
  9 12 76, and said the bonds shall mature within a period not
  9 13 exceeding twenty years from date of issue the period provided
  9 14 in section 76.1, shall bear interest at a rate or rates not
  9 15 exceeding that permitted by chapter 74A and shall be of such
  9 16 form as the board of directors of such the school district
  9 17 shall by resolution provide, but the aggregate indebtedness of
  9 18 any school district shall not exceed five percent of the
  9 19 actual value of the taxable property within said the school
  9 20 district, as ascertained by the last preceding state and
  9 21 county tax lists.
  9 22    Sec. 12.  Section 296.6, Code 1995, is amended to read as
  9 23 follows:
  9 24    296.6  BONDS.
  9 25    If the vote in favor of the issuance of such bonds is equal
  9 26 to at least sixty percent of the total vote cast for and
  9 27 against said the proposition at said the election, the board
  9 28 of directors shall issue the same bonds and make provision for
  9 29 payment thereof of the bonds.  However, if the board of
  9 30 directors of a school corporation elects to partially fund the
  9 31 bonds with revenues from a local income surtax, in addition to
  9 32 property tax revenues, the ballot proposition to authorize the
  9 33 issuance of the bonds shall be submitted to the electorate
  9 34 pursuant to section 75.1, subsection 2.
  9 35    Sec. 13.  Section 298.14, unnumbered paragraph 1, Code
 10  1 1995, is amended to read as follows:
 10  2    For each fiscal year, the cumulative total of the percents
 10  3 of surtax approved by the board of directors of a school
 10  4 district and collected by the department of revenue and
 10  5 finance under sections 257.21, 257.29, 279.54, and 298.2, and
 10  6 the enrichment surtax under section 442.15, Code 1989, and an
 10  7 income surtax collected by a political subdivision under
 10  8 chapter 422D, shall not exceed twenty percent.  In addition,
 10  9 if an income surtax is imposed under section 76.19, the
 10 10 cumulative total of percents of surtax imposed on any taxpayer
 10 11 in a school district under sections 76.19, 257.21, 257.29,
 10 12 279.54, 298.2, 442.15, Code 1989, and chapter 422D shall not
 10 13 exceed twenty percent in the first year in which one or more
 10 14 of these income surtaxes is imposed.
 10 15    Sec. 14.  Section 298.18, unnumbered paragraph 2, Code
 10 16 1995, is amended to read as follows:
 10 17    The amount estimated and certified to apply on to pay
 10 18 principal and interest for any one year shall not exceed an
 10 19 amount that could be raised by a property tax levy equal to
 10 20 two dollars and seventy cents per thousand dollars of the
 10 21 assessed valuation of the taxable property of the school
 10 22 corporation except as hereinafter provided.
 10 23    Sec. 15.  Section 298.18, unnumbered paragraph 4, Code
 10 24 1995, is amended to read as follows:
 10 25    The amount estimated and certified to apply on to pay
 10 26 principal and interest for any one year may exceed an amount
 10 27 that could be raised by a property tax levy equal to two
 10 28 dollars and seventy cents per thousand dollars of assessed
 10 29 value by the amount approved by the voters of the school
 10 30 corporation, but not exceeding four dollars and five cents per
 10 31 thousand of the assessed value of the taxable property within
 10 32 any school corporation, provided that the qualified voters of
 10 33 such school corporation have first approved such increased
 10 34 amount at a special election as required in section 75.1,
 10 35 which may be held at the same time as the regular school
 11  1 election.  The proposition submitted to the voters at such
 11  2 special election shall be in substantially the following form:
 11  3    Sec. 16.  Section 298.18, unnumbered paragraph 6, Code
 11  4 1995, is amended to read as follows:
 11  5    Notice of the election shall be given by the county
 11  6 commissioner of elections according to section 49.53.  The
 11  7 election shall be held on a date not less than four nor more
 11  8 than twenty days after the last publication of the notice.  At
 11  9 such the election the ballot used for the submission of said
 11 10 the proposition shall be in substantially the form for
 11 11 submitting special questions at general elections.  The county
 11 12 commissioner of elections shall conduct the election pursuant
 11 13 to the provisions of chapters 39 to 53 and certify the results
 11 14 to the board of directors.  Such The proposition shall not be
 11 15 deemed carried or adopted unless the vote in favor of such the
 11 16 proposition is equal to at least sixty percent of the total
 11 17 vote cast for and against said the proposition at said the
 11 18 election.  However, if the board of directors of a school
 11 19 district elects to partially fund the bonds with revenues from
 11 20 a local income surtax, in addition to property tax revenues,
 11 21 the ballot proposition to authorize the issuance of the bonds
 11 22 shall be submitted to the electorate pursuant to section 75.1,
 11 23 subsection 2.  Whenever If such a proposition has been
 11 24 approved by the voters of a school corporation as hereinbefore
 11 25 provided, no further approval of the voters of such the school
 11 26 corporation shall be required as a result of any subsequent
 11 27 change in the boundaries of such the school corporation.
 11 28    Sec. 17.  Section 298.22, unnumbered paragraph 1, Code
 11 29 1995, is amended to read as follows:
 11 30    All of said The bonds shall be substantially in the form
 11 31 provided for county bonds, but subject to changes that will
 11 32 conform them to the action of the board providing therefor;
 11 33 shall run not more than twenty years mature within the period
 11 34 provided in section 76.1, and may be sooner paid if so
 11 35 nominated in the bond; bear a rate of interest not exceeding
 12  1 that permitted by chapter 74A, payable semiannually; be signed
 12  2 by the president and countersigned by the secretary of the
 12  3 board of directors; and shall not be disposed of for less than
 12  4 par value, nor issued for other purposes than this chapter
 12  5 provides.
 12  6    Sec. 18.  Section 331.442, subsection 4, Code 1995, is
 12  7 amended to read as follows:
 12  8    4.  The proposition of issuing bonds for a general county
 12  9 purpose is not carried or adopted unless the vote in favor of
 12 10 the proposition is equal to at least sixty percent of the
 12 11 total vote cast for and against the proposition at the
 12 12 election.  However, if the board elects to partially fund the
 12 13 bonds with revenues from a local income surtax, in addition to
 12 14 property tax revenues, the ballot proposition to authorize the
 12 15 issuance of the bonds shall be submitted to the electorate
 12 16 pursuant to section 75.1, subsection 2.  If the proposition of
 12 17 issuing the general county purpose bonds is approved by the
 12 18 voters, the board may proceed with the issuance of the bonds.
 12 19    Sec. 19.  Section 331.442, subsection 5, paragraph a,
 12 20 unnumbered paragraph 1, Code 1995, is amended to read as
 12 21 follows:
 12 22    Notwithstanding subsection 2, a board, in lieu of calling
 12 23 an election, may institute proceedings for the issuance of
 12 24 bonds for a general county purpose by causing a notice of the
 12 25 proposal to issue the bonds, including a statement of the
 12 26 amount and purpose of the bonds, the type or types of debt
 12 27 service tax to be levied or imposed to pay principal and
 12 28 interest on the bonds, and the right to petition for an
 12 29 election, to be published as provided in section 331.305 at
 12 30 least ten days prior to the meeting at which it is proposed to
 12 31 take action for the issuance of the bonds subject to the
 12 32 following limitations:
 12 33    Sec. 20.  Section 331.447, subsection 1, Code 1995, is
 12 34 amended to read as follows:
 12 35    1.  Taxes for the payment of general obligation bonds shall
 13  1 be levied or imposed in accordance with chapter 76, and the
 13  2 bonds are payable from the levy of unlimited ad valorem taxes
 13  3 on all the taxable property within the county through its debt
 13  4 service fund required by section 331.430 a debt service
 13  5 property tax or a combination of a debt service property tax
 13  6 and a debt service income surtax, unlimited as to amount,
 13  7 except that:
 13  8    a.  The amount estimated and certified to apply to pay on
 13  9 principal and interest for any one year shall not exceed an
 13 10 amount that could be raised by a debt service property tax
 13 11 levy equal to the maximum rate of tax, if any, provided by
 13 12 this division for the purpose for which the bonds were issued.
 13 13 If general obligation bonds are issued for different
 13 14 categories, as provided in section 331.445, the maximum rate
 13 15 of levies, if any, for each purpose shall apply separately to
 13 16 that portion of the bond issue for that category and the
 13 17 resolution authorizing the bond issue shall clearly set forth
 13 18 the annual debt service requirements with respect to each
 13 19 purpose in sufficient detail to indicate compliance with the
 13 20 rate of tax levy, if any.
 13 21    b.  The amount estimated and certified to apply to pay on
 13 22 principal and interest for any one year may only exceed an
 13 23 amount that could be raised by a debt service property tax
 13 24 levy equal to the statutory rate of levy limit, if any, by the
 13 25 amount that the qualified electors registered voters of the
 13 26 county have approved at a special election, which may be held
 13 27 at the same time as the general election and may be included
 13 28 in the proposition authorizing the issuance of bonds, if an
 13 29 election on the proposition is necessary, or may be submitted
 13 30 as a separate proposition at the same election or at a
 13 31 different election.  Notice of the election shall be given as
 13 32 specified in section 331.305.  If the proposition includes
 13 33 issuing bonds and increasing the levy limit, it shall be in
 13 34 substantially the following form:
 13 35    Shall the county of ........, state of Iowa, be authorized
 14  1 to .......... (here state purpose of project) at a total cost
 14  2 not exceeding $.... and issue its general obligation bonds in
 14  3 an amount not exceeding $.... for that purpose, and be
 14  4 authorized to levy annually a debt service property tax (or
 14  5 debt service property tax and income surtax, if applicable),
 14  6 which will produce an amount not exceeding ... dollars and ...
 14  7 cents per thousand dollars of the assessed value of the
 14  8 taxable property within the county to pay the principal of and
 14  9 interest on the bonds?
 14 10    If the proposition includes only increasing the levy limit
 14 11 it shall be in substantially the following form:
 14 12    Shall the county of ........, state of Iowa, be authorized
 14 13 to levy annually a debt service property tax (or debt service
 14 14 property tax and income surtax, if applicable), which will
 14 15 produce an amount not exceeding ... dollars and ... cents per
 14 16 thousand dollars of the assessed value of the taxable property
 14 17 within the county to pay principal and interest on the bonded
 14 18 indebtedness of the county for the purpose of ..........?
 14 19    Sec. 21.  Section 331.490, Code 1995, is amended to read as
 14 20 follows:
 14 21    331.490  CITIES SUBJECT TO DEBT SERVICE TAX LEVY &endash; RATES.
 14 22    1.  If a county and city have entered into an agreement to
 14 23 create a joint special assessment district and issue county
 14 24 general obligation bonds to fund the costs of a public
 14 25 improvement benefiting that district, the county's debt
 14 26 service property tax levy for the county general obligation
 14 27 bonds shall not be levied against property located in any city
 14 28 except a city which has entered into the agreement, and, if
 14 29 applicable, the county's debt service income surtax for the
 14 30 county general obligation bonds shall not be imposed on
 14 31 taxpayers who reside in any city except a city which has
 14 32 entered into the agreement.
 14 33    2.  Counties and cities entering into an agreement for a
 14 34 joint special assessment district may provide in the agreement
 14 35 for a different rate of the county's debt service tax levy
 15  1 against property in areas of the county outside a city and
 15  2 property within the cities, and, if applicable, for a
 15  3 different rate of the county's debt service income surtax to
 15  4 be imposed on taxpayers residing outside the cities and those
 15  5 residing within each city.
 15  6    Sec. 22.  Section 384.26, subsections 2 and 4, Code 1995,
 15  7 are amended to read as follows:
 15  8    2.  Before the council may institute proceedings for the
 15  9 issuance of bonds for a general corporate purpose, it shall
 15 10 call a special city election to vote upon the question of
 15 11 issuing the bonds.  At the election the proposition must be
 15 12 submitted in substantially the following form:
 15 13    Shall the ............ (insert the name of the city) issue
 15 14 its bonds in an amount not exceeding the amount of $.... for
 15 15 the purpose of .........., such bonds to be payable from a
 15 16 property tax levied on all taxable property within the city
 15 17 (and income surtax to be imposed on the state income tax of
 15 18 each income taxpayer residing in the city)?
 15 19    4.  The proposition of issuing general corporate purpose
 15 20 bonds is not carried or adopted unless the vote in favor of
 15 21 the proposition is equal to at least sixty percent of the
 15 22 total vote cast for and against the proposition at the
 15 23 election.  However, if the city council elects to partially
 15 24 fund the bonds with revenues from a local income surtax, in
 15 25 addition to property tax revenues, the ballot proposition to
 15 26 authorize the issuance of the bonds shall be submitted to the
 15 27 electorate pursuant to section 75.1, subsection 2.  If the
 15 28 proposition of issuing the general corporate purpose bonds is
 15 29 approved by the voters, the city may proceed with the issuance
 15 30 of the bonds.
 15 31    Sec. 23.  Section 384.26, subsection 5, paragraph a,
 15 32 unnumbered paragraph 1, Code 1995, is amended to read as
 15 33 follows:
 15 34    Notwithstanding the provisions of subsection 2, a council
 15 35 may, in lieu of calling an election, institute proceedings for
 16  1 the issuance of bonds for a general corporate purpose by
 16  2 causing a notice of the proposal to issue the bonds, including
 16  3 a statement of the amount and purpose of the bonds, the type
 16  4 or types of debt service tax to be levied or imposed to pay
 16  5 principal and interest of the bonds, together with the maximum
 16  6 rate of interest which the bonds are to bear, and the right to
 16  7 petition for an election, to be published at least once in a
 16  8 newspaper of general circulation within the city at least ten
 16  9 days prior to the meeting at which it is proposed to take
 16 10 action for the issuance of the bonds subject to the following
 16 11 limitations:
 16 12    Sec. 24.  Section 384.32, Code 1995, is amended to read as
 16 13 follows:
 16 14    384.32  TAX TO PAY.
 16 15    Taxes for the payment of general obligation bonds must be
 16 16 levied in accordance with chapter 76, and the bonds are
 16 17 payable from the levy of unlimited ad valorem taxes on all the
 16 18 taxable property within the city through its debt service fund
 16 19 authorized by section 384.4 a debt service property tax or a
 16 20 combination of a debt service property tax and a debt service
 16 21 income surtax, unlimited as to amount.
 16 22    Sec. 25.  APPLICABILITY DATE.  This Act applies to bond
 16 23 issuances approved at elections held on or after the effective
 16 24 date of this Act.  
 16 25                           EXPLANATION
 16 26    This bill authorizes general obligation bonds to be issued
 16 27 by certain political subdivisions which will be partially
 16 28 funded by a local income surtax imposed on individuals, in
 16 29 addition to property taxes.  Sixty percent of the principal
 16 30 and interest of the bonds shall be funded by income surtax.
 16 31 The question of whether to impose a local income surtax to
 16 32 partially fund the bonds shall be included in the bond
 16 33 issuance ballot proposition.  If principal and interest on the
 16 34 bonds are to be funded by property tax and income surtax, the
 16 35 required percentage of votes needed to authorize issuance of
 17  1 the bonds is reduced from 60 percent to a simple majority.
 17  2    The bill also provides that the amount of income surtax
 17  3 funds collected shall be credited on a pro rata basis to each
 17  4 parcel of real property in the political subdivision which is
 17  5 assessed as agricultural or residential property.
 17  6    The bill provides that a bond proposition which includes an
 17  7 income surtax may not be presented to the electorate if, in
 17  8 the first year the surtax is imposed, the total surtax imposed
 17  9 on any taxpayer in the political subdivision would exceed 20
 17 10 percent.  The property tax levied or income surtax imposed is
 17 11 to be designated as a debt service tax for the payment of
 17 12 principal and interest on general obligation bonds.
 17 13    This bill applies to bonds issued by a county, city, school
 17 14 district, or community college.
 17 15    The bill applies to bond issuances approved at elections
 17 16 held on or after the effective date of the bill.  
 17 17 LSB 1364SV 76
 17 18 sc/jj/8
     

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