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PAG LIN 1 1 Section 1. Section 257.3, subsection 1, Code 1995, is 1 2 amended to read as follows: 1 3 1. AMOUNT OF TAX. Except as provided in subsections 1A, 1 4 2, and 3, a school district shall cause to be levied each 1 5 year, for the school general fund, a foundation property tax 1 6 equal to five dollars and forty cents per thousand dollars of 1 7 assessed valuation on all taxable property in the district. 1 8 The county auditor shall spread the foundation levy over all 1 9 taxable property in the district. 1 10 Sec. 2. Section 257.3, Code 1995, is amended by adding the 1 11 following new subsection: 1 12 NEW SUBSECTION. 1A. 1 13 a. For the budget year commencing July 1, 1995, and each 1 14 succeeding budget year, there is appropriated from the general 1 15 fund of the state to the department of management the amount 1 16 determined in paragraph "b" for the purpose of providing 1 17 additional state aid during the budget year as provided in 1 18 this section. 1 19 b. The amount to be appropriated shall be the estimated 1 20 state general fund revenues to be collected during the budget 1 21 year from two cents of the state sales, services, and use 1 22 taxes. The department shall determine this amount by March 25 1 23 of the base year based upon the latest revenue estimates of 1 24 the revenue estimating conference. The moneys appropriated 1 25 shall be used as provided in paragraph "c". 1 26 c. The appropriation in this section shall be used to 1 27 reduce uniformly the foundation property tax rate to be levied 1 28 under this section so that the amount raised by this new 1 29 foundation property tax rate plus the amount appropriated in 1 30 paragraph "a" equals the amount that would have been raised by 1 31 the foundation property tax rate specified in subsection 1. 1 32 The department of management shall make the calculation and 1 33 notify each school district of the new rate by April 1 of the 1 34 base year. The department shall pay one-half of this 1 35 additional state aid to each school district in September and 2 1 one-half in March of the budget year. 2 2 For purposes of this chapter and other statutes that refer 2 3 to the foundation property tax or revenues raised by the 2 4 foundation property tax, the amount of state aid provided in 2 5 this paragraph shall be considered as foundation property tax. 2 6 d. If the amount of the appropriation is in excess of the 2 7 amount needed to reduce the foundation property tax rate under 2 8 paragraph "c" to zero, the excess shall be paid to school 2 9 districts as additional state aid by increasing by equal 2 10 percentage points the regular program and special education 2 11 support services foundation bases so that any excess amounts 2 12 are eliminated. 2 13 e. All state aid payments and calculations are based upon 2 14 estimates and are not designed to be exact. 2 15 Sec. 3. Section 327I.26, Code 1995, is amended to read as 2 16 follows: 2 17 327I.26 APPROPRIATION TO AUTHORITY. 2 18 Notwithstanding section 423.24 and prior to the application 2 19 of section 423.24, subsection 1, paragraph "d", there shall be 2 20 deposited into the general fund of the state and is 2 21 appropriated to the authority fromeighty percentfour- 2 22 sevenths of the revenues derived from the operation of section 2 23 423.7 the amounts certified by the authority under section 2 24 327I.25. However, the total amount deposited into the general 2 25 fund and appropriated to the Iowa railway finance authority 2 26 under this section shall not exceed two million dollars 2 27 annually. Moneys appropriated to the Iowa railway finance 2 28 authority under this section are appropriated only for the 2 29 payment of principal and interest on obligations or the 2 30 payment of leases guaranteed by the authority as provided 2 31 under section 327I.25. 2 32 Sec. 4. Section 422.43, subsections 1, 2, 4, 5, 6, 7, and 2 33 10, Code 1995, are amended to read as follows: 2 34 1. There is imposed a tax offiveseven percent upon the 2 35 gross receipts from all sales of tangible personal property, 3 1 consisting of goods, wares, or merchandise, except as 3 2 otherwise provided in this division, sold at retail in the 3 3 state to consumers or users; a like rate of tax upon the gross 3 4 receipts from the sales, furnishing, or service of gas, 3 5 electricity, water, heat, pay television service, and 3 6 communication service, including the gross receipts from such 3 7 sales by any municipal corporation or joint water utility 3 8 furnishing gas, electricity, water, heat, pay television 3 9 service, and communication service to the public in its 3 10 proprietary capacity, except as otherwise provided in this 3 11 division, when sold at retail in the state to consumers or 3 12 users; a like rate of tax upon the gross receipts from all 3 13 sales of tickets or admissions to places of amusement, fairs, 3 14 and athletic events except those of elementary and secondary 3 15 educational institutions; a like rate of tax on the gross 3 16 receipts from an entry fee or like charge imposed solely for 3 17 the privilege of participating in an activity at a place of 3 18 amusement, fair, or athletic event unless the gross receipts 3 19 from the sales of tickets or admissions charges for observing 3 20 the same activity are taxable under this division; and a like 3 21 rate of tax upon that part of private club membership fees or 3 22 charges paid for the privilege of participating in any 3 23 athletic sports provided club members. 3 24 2. There is imposed a tax offiveseven percent upon the 3 25 gross receipts derived from the operation of all forms of 3 26 amusement devices and games of skill, games of chance, 3 27 raffles, and bingo games as defined in chapter 99B, operated 3 28 or conducted within the state, the tax to be collected from 3 29 the operator in the same manner as for the collection of taxes 3 30 upon the gross receipts of tickets or admission as provided in 3 31 this section. The tax shall also be imposed upon the gross 3 32 receipts derived from the sale of lottery tickets or shares 3 33 pursuant to chapter 99E. The tax on the lottery tickets or 3 34 shares shall be included in the sales price and distributed to 3 35 the general fund as provided in section 99E.10. 4 1 4. There is imposed a tax offiveseven percent upon the 4 2 gross receipts from the sales of engraving, photography, 4 3 retouching, printing, and binding services. For the purpose 4 4 of this division, the sales of engraving, photography, 4 5 retouching, printing, and binding services are sales of 4 6 tangible property. 4 7 5. There is imposed a tax offiveseven percent upon the 4 8 gross receipts from the sales of vulcanizing, recapping, and 4 9 retreading services. For the purpose of this division, the 4 10 sales of vulcanizing, recapping, and retreading services are 4 11 sales of tangible property. 4 12 6. There is imposed a tax offiveseven percent upon the 4 13 gross receipts from the sales of optional service or warranty 4 14 contracts which provide for the furnishing of labor and 4 15 materials and require the furnishing of any taxable service 4 16 enumerated under this section. The gross receipts are subject 4 17 to tax even if some of the services furnished are not 4 18 enumerated under this section. For the purpose of this 4 19 division, the sale of an optional service or warranty contract 4 20 is a sale of tangible personal property. Additional sales, 4 21 services, or use taxes shall not be levied on services, parts, 4 22 or labor provided under optional service or warranty contracts 4 23 which are subject to tax under this section. 4 24 7. There is imposed a tax offiveseven percent upon the 4 25 gross receipts from the renting of rooms, apartments, or 4 26 sleeping quarters in a hotel, motel, inn, public lodging 4 27 house, rooming house, mobile home which is tangible personal 4 28 property, or tourist court, or in any place where sleeping 4 29 accommodations are furnished to transient guests for rent, 4 30 whether with or without meals. "Renting" and "rent" include 4 31 any kind of direct or indirect charge for such rooms, 4 32 apartments, or sleeping quarters, or their use. For the 4 33 purposes of this division, such renting is regarded as a sale 4 34 of tangible personal property at retail. However, this tax 4 35 does not apply to the gross receipts from the renting of a 5 1 room, apartment, or sleeping quarters while rented by the same 5 2 person for a period of more than thirty-one consecutive days. 5 3 10. There is imposed a tax offiveseven percent upon the 5 4 gross receipts from the rendering, furnishing, or performing 5 5 of services as defined in section 422.42. 5 6 Sec. 5. Section 422.43, subsection 12, unnumbered 5 7 paragraph 1, Code 1995, is amended to read as follows: 5 8 A tax offiveseven percent is imposed upon the gross 5 9 receipts from all sales of tangible personal property, 5 10 consisting of goods, wares, or merchandise, except as 5 11 otherwise provided in this division, sold at retail in the 5 12 state to consumers or users within the state by retailers that 5 13 meet any of the following criteria: 5 14 Sec. 6. Section 422.43, subsection 13, paragraph a, 5 15 unnumbered paragraph 1, Code 1995, is amended to read as 5 16 follows: 5 17 A tax offiveseven percent is imposed upon the gross 5 18 receipts from the sales, furnishing, or service of solid waste 5 19 collection and disposal service. 5 20 Sec. 7. Section 422.47, subsection 2, Code 1995, is 5 21 amended to read as follows: 5 22 2. Construction contractors may make application to the 5 23 department for a refund of the additionalonetwo percent tax 5 24 paid under this division or the additionalonetwo percent tax 5 25 paid under chapter 423 by reason of the increase in the tax 5 26 fromfour tofive to seven percent for taxes paid on goods, 5 27 wares, or merchandise under the following conditions: 5 28 a. The goods, wares, or merchandise are incorporated into 5 29 an improvement to real estate in fulfillment of a written 5 30 contract fully executed prior to July 1,19921995. The 5 31 refund shall not apply to equipment transferred in fulfillment 5 32 of a mixed construction contract. 5 33 b. The contractor has paid to the department or to a 5 34 retailer the fullfiveseven percent tax. 5 35 c. The claim is filed on forms provided by the department 6 1 and is filed within one year of the date the tax is paid. 6 2 A contractor who makes an erroneous application for refund 6 3 shall be liable for payment of the excess refund paid plus 6 4 interest at the rate in effect under section 421.7. In 6 5 addition, a contractor who willfully makes a false application 6 6 for refund is guilty of a simple misdemeanor and is liable for 6 7 a penalty equal to fifty percent of the excess refund claimed. 6 8 Excess refunds, penalties, and interest due under this 6 9 subsection may be enforced and collected in the same manner as 6 10 the tax imposed by this division. 6 11 Sec. 8. Section 422C.3, subsection 1, Code 1995, is 6 12 amended to read as follows: 6 13 1. A tax offiveseven percent is imposed upon the rental 6 14 price of an automobile if the rental transaction is subject to 6 15 the sales and services tax under chapter 422, division IV, or 6 16 the use tax under chapter 423. The tax shall not be imposed 6 17 on any rental transaction not taxable under the state sales 6 18 and services tax, as provided in section 422.45, or the state 6 19 use tax, as provided in section 423.4, on automobile rental 6 20 receipts. 6 21 Sec. 9. Section 423.2, Code 1995, is amended to read as 6 22 follows: 6 23 423.2 IMPOSITION OF TAX. 6 24 An excise tax is imposed on the use in this state of 6 25 tangible personal property purchased for use in this state, at 6 26 the rate offiveseven percent of the purchase price of the 6 27 property. The excise tax is imposed upon every person using 6 28 the property within this state until the tax has been paid 6 29 directly to the county treasurer or the state department of 6 30 transportation, to a retailer, or to the department. An 6 31 excise tax is imposed on the use in this state of services 6 32 enumerated in section 422.43 at the rate offiveseven 6 33 percent. This tax is applicable where services are rendered, 6 34 furnished, or performed in this state or where the product or 6 35 result of the service is used in this state. This tax is 7 1 imposed on every person using the services or the product of 7 2 the services in this state until the user has paid the tax 7 3 either to an Iowa use tax permit holder or to the department. 7 4 Sec. 10. Section 423.24, subsection 1, unnumbered 7 5 paragraph 1, Code 1995, is amended to read as follows: 7 6Eighty percentSix-sevenths of all revenues derived from 7 7 the use tax on motor vehicles, trailers, and motor vehicle 7 8 accessories and equipment as collected pursuant to section 7 9 423.7 shall be deposited and credited as follows: 7 10 Sec. 11. Section 423.24, subsection 2, Code 1995, is 7 11 amended to read as follows: 7 12 2.Twenty percentOne-seventh of all revenue derived from 7 13 the use tax on motor vehicles, trailers, and motor vehicle 7 14 accessories and equipment as collected pursuant to section 7 15 423.7 shall be deposited in the GAAP deficit reduction account 7 16 established in the department of management pursuant to 7 17 section 8.57, subsection 2, and shall be used in accordance 7 18 with the provisions of that section. 7 19 Sec. 12. APPLICABILITY. This section applies in regard to 7 20 the increase in the state sales, services, and use taxes from 7 21 five to seven percent. The seven percent rate applies to all 7 22 sales of taxable personal property, consisting of goods, 7 23 wares, or merchandise if delivery occurs on or after July 1, 7 24 1995. The use tax rate of seven percent applies to motor 7 25 vehicles subject to registration which are registered on or 7 26 after July 1, 1995. The seven percent use tax rate applies to 7 27 the use of property when the first taxable use in this state 7 28 occurs on or after July 1, 1995. The seven percent rate 7 29 applies to the gross receipts from the sale, furnishing, or 7 30 service of gas, electricity, water, heat, pay television 7 31 service, and communication service if the date of billing the 7 32 customer is on or after July 1, 1995. In the case of a 7 33 service contract entered into prior to July 1, 1995, which 7 34 contract calls for periodic payments, the seven percent rate 7 35 applies to those payments made or due on or after July 1, 8 1 1995. This periodic payment applies, but is not limited to, 8 2 tickets or admissions, private club membership fees, sources 8 3 of amusement, equipment rental, dry cleaning, reducing salons, 8 4 dance schools, and all other services subject to tax, except 8 5 the aforementioned utility services which are subject to a 8 6 special transitional rule. Unlike periodic payments under 8 7 service contracts, installment sales of goods, wares, and 8 8 merchandise are subject to the full amount of sales or use tax 8 9 when the sales contract is entered into or the property is 8 10 first used in Iowa. 8 11 Sec. 13. Sections 3, 10, and 11 of this Act apply to the 8 12 revenues derived from the seven percent use tax on motor 8 13 vehicles, trailers, and motor vehicle accessories and 8 14 equipment that are collected on and after July 1, 1995, 8 15 pursuant to section 423.7. 8 16 Sec. 14. Sections 1 and 2 of this Act, being deemed of 8 17 immediate importance, take effect upon enactment and apply to 8 18 school budget years commencing on or after July 1, 1995. 8 19 EXPLANATION 8 20 The bill reduces the rate of the foundation property tax 8 21 which each school district must levy under the state school 8 22 foundation aid program. The amount of the reduction is based 8 23 upon the revenues from the two cent sales and use tax increase 8 24 and these revenues are appropriated to pay each school 8 25 district for the reduction in its foundation property tax 8 26 revenues. If the state appropriation is in excess of the 8 27 amount to totally reduce the foundation property tax rate to 8 28 zero, the excess shall be used to fund an increase in the 8 29 foundation base level of the regular program state cost per 8 30 pupil and the special education support services state cost 8 31 per pupil. This will result in an increase in state aid and a 8 32 reduction in property taxes. The bill also increases from 5 8 33 to 7 percent the state sales and use tax rates to provide 8 34 funding for the increased state aid payments. 8 35 The sales and use tax increases are effective July 1, 1995, 9 1 and the changes in the foundation property tax and foundation 9 2 base are effective immediately and apply to budget years 9 3 commencing July 1, 1995. 9 4 LSB 2057XS 76 9 5 mg/jj/8.1
Text: SF00344 Text: SF00346 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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