Text: SF02128 Text: SF02130 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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,suchthe 1 7 propositionshall not be deemed carried or adopted, anything1 8in the statutes to the contrary notwithstanding, unlessis 1 9 adopted if the vote in favor ofsuch authorizationthe 1 10 proposition is equal to at least sixty percent of the total 1 11 vote cast for and againstsaidthe proposition atsaidthe 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 a majority of the total vote cast for 1 19 and against the proposition at the election. However, a bond 1 20 issuance proposition proposing imposition of an income surtax 1 21 shall not be presented to the electors if in the first year 1 22 the income surtax is imposed the total of all income surtaxes 1 23 authorized by law and imposed in that year on any taxpayer in 1 24 the political subdivision imposing the surtax would exceed 1 25 twenty percent. Upon request of the governing authority, the 1 26 department of management shall certify the cumulative rate of 1 27 income surtax being imposed in the political subdivision. 1 28 3. All ballots cast and not counted as a vote for or 1 29 against the proposition shall not be used in computing the 1 30 total vote cast for and againstsaidthe proposition. 1 31 4. When a proposition to authorize an issuance of bonds 1 32 has been submitted to the electors under this section and the 1 33 proposal fails to gain approval by the required percentage of 1 34 votes, such proposal, or any proposal which incorporates any 1 35 portion of the defeated proposal, shall not be submitted to 2 1 the electors for a period ofsixtwelve months from the date 2 2 of such regular or special election. 2 3 Sec. 2. Section 76.1, Code 1995, is amended to read as 2 4 follows: 2 5 76.1 MANDATORY RETIREMENT. 2 6Hereafter issuesIssues of bondsof every kind and2 7characterby counties, cities, and school corporations shall 2 8 be consecutively numbered. The annual levy of property tax, 2 9 or combination of property tax levy and income surtax imposed 2 10 as provided in section 76.19, shall be sufficient to pay the 2 11 interest and approximatelysuchthat portion of the principal 2 12 of the bonds as will retire them in a period not exceeding 2 13twentytwenty-two years from date of issue. Each issue of 2 14 bonds shall be scheduled to mature serially in the same order 2 15 as numbered. 2 16 Sec. 3. Section 76.2, Code 1995, is amended to read as 2 17 follows: 2 18 76.2 MANDATORY LEVY &endash; OBLIGATIONS IN ANTICIPATION OF 2 19 LEVY. 2 20 The governing authority of these political subdivisions 2 21 before issuing bonds shall, by resolution, provide for the 2 22 assessment of an annual levy upon all the taxable property in 2 23 the political subdivision, or the assessment of an annual 2 24 property tax levy and imposition of an income surtax under 2 25 section 76.19, sufficient to pay theinterest andprincipal 2 26 and interest of the bonds within a period named not exceeding 2 27twenty yearsthat provided in section 76.1. A certified copy 2 28 of this resolution shall be filed with the county auditor or 2 29 the auditors of the counties in which the political 2 30 subdivision is located; and the filing shall make it a duty of 2 31 the auditors to enter annually this levy for collection from 2 32 the taxable property within the boundaries of the political 2 33 subdivision until funds are realized to pay the bonds in full. 2 34 The property tax levy shall continue to be made against 2 35 property that is severed from the political subdivision and 3 1 the income surtax shall continue to be imposed upon the 3 2 residents of any area severed from the political subdivision 3 3 after the filing of the resolution until funds are realized to 3 4 pay the bonds in full. 3 5 Ifthea resolution which does not include imposition of an 3 6 income surtax is filed prior to April 1, or May 1,if the 3 7 political subdivision is a school district, the annual levy 3 8 shall begin with the tax levy for collection commencing July 1 3 9 of that year. If the resolution is filed after April 1, or 3 10 May 1,in the case of a school district, or if the resolution 3 11 includes imposition of an income surtax, the annual property 3 12 tax levy shall begin with the tax levy for collection in the 3 13 next succeeding fiscal year. If the resolution includes the 3 14 imposition of a local income surtax and it is filed with the 3 15 department of revenue and finance prior to August 1, the 3 16 imposition of the surtax is retroactive to January 1 of that 3 17 calendar year. If the resolution is filed with the department 3 18 of revenue and finance on or after August 1, the imposition of 3 19 the income surtax begins on January 1 of the next calendar 3 20 year. However, the governing authority of a political 3 21 subdivision may adjust a levy of taxes made under this section 3 22 for the purpose of adjusting the annual levies and collections 3 23 and income surtax rate for property severed from the political 3 24 subdivision, subject to the approval of the director of the 3 25 department of management. 3 26 If funds, including reserves and amounts available for 3 27 temporary transfer, arefound to beinsufficient to pay in 3 28 full any installment of principal or interest, a public issuer 3 29 of bonds may anticipate the next levy of property taxes 3 30 pursuant to this section or the imposition of an income surtax 3 31 under section 76.19 in the manner provided in chapter 74, 3 32 whether the taxes so anticipated are to be collected in the 3 33 same or a future fiscal year. 3 34 To further secure the payment of the bonds, the governing 3 35 authority shall, by resolution, provide for the assessment of 4 1 an annual levy of a standby tax upon all taxable property 4 2 within the political subdivision. A copy of the resolution 4 3 shall be sent to the county auditor of each county in which 4 4 the political subdivision is located. The revenues from the 4 5 standby tax shall be deposited in a special fund and shall be 4 6 expended only for the payment of principal and interest on the 4 7 bonds issued as provided in this section, when the revenue 4 8 from an income surtax as provided in section 76.19 is 4 9 insufficient. Reserves shall not be built up in this fund in 4 10 anticipation of a projected default. The governing authority 4 11 shall adjust the annual standby property tax levy for each 4 12 year to reflect the amount of revenues in the special fund and 4 13 the amount of principal and interest which is due in that 4 14 year. 4 15 Sec. 4. Section 76.4, Code 1995, is amended to read as 4 16 follows: 4 17 76.4 PERMISSIVE APPLICATION OF FUNDS. 4 18WheneverIf the governing authority ofsucha political 4 19 subdivisionshall havehas on hand funds derived fromany4 20othera source other than taxation which may be appropriated 4 21 to the payment either ofinterest orprincipal or interest, or 4 22 both principal and interest of such bonds,suchthe funds may 4 23 besoappropriated and used and the property tax levy and 4 24 income surtax rate, if imposed, for the payment of the bonds 4 25 correspondingly reduced. 4 26 Sec. 5. Section 76.7, Code 1995, is amended to read as 4 27 follows: 4 28 76.7 PARTICULAR BONDS AFFECTED &endash; PAYMENT. 4 29 Counties, cities, and school corporations may at any time 4 30or timesextend or renew any legal indebtedness or any part 4 31thereofof the indebtedness theymayhave represented by bonds 4 32 or certificates wheresuchthe indebtedness is payable from a 4 33 limited annual property tax or from a voted annual property 4 34 tax, or from an income surtax imposed under section 76.19, and 4 35 may by resolution fund or refund thesamelegal indebtedness 5 1 and issue bondsthereforrunning not more than twenty years to 5 2 be known as funding or refunding bonds, and make provision for 5 3 the payment of the principal and interestthereoffrom the 5 4 proceeds of an annual property tax, or annual property tax and 5 5 income surtax, for the period covered bysuchthe bonds 5 6 similar to the tax authorized by law or by the electors for 5 7 the payment of the indebtednesssoextended or renewed. 5 8 Sec. 6. NEW SECTION. 76.19 INCOME SURTAX. 5 9 1. An income surtax may be imposed by a political 5 10 subdivision as provided in this section, but only if 5 11 authorized by the electors as provided in section 75.1. 5 12 2. The income surtax shall be imposed upon state income 5 13 taxes computed under section 422.5, less credits allowed in 5 14 sections 422.11A, 422.11B, 422.11C, 422.12, and 422.12B, and 5 15 shall be imposed upon the state income tax for each calendar 5 16 year, or for a taxpayer's fiscal year ending during the second 5 17 half of that calendar year or the first half of the succeeding 5 18 calendar year, and shall be imposed on all taxpayers residing 5 19 in the political subdivision on the last day of the applicable 5 20 tax year, and on taxpayers residing in areas severed from the 5 21 political subdivision as provided in section 76.2. 5 22 3. The income surtax shall be imposed to collect an amount 5 23 that is equivalent to sixty percent of the sum of the prin- 5 24 cipal and interest of the bonds over the life of the bonds. 5 25 The rate of the income surtax may be adjusted in any year for 5 26 the sole purpose of ensuring that an amount equivalent to 5 27 sixty percent of the principal and interest over the life of 5 28 the bonds is collected. 5 29 4. At the time of the annual levy under section 76.2, the 5 30 governing authority of the political subdivision shall also 5 31 provide in the resolution for the imposition of the income 5 32 surtax and shall certify to the department of management such 5 33 sum expressed in dollars. The department shall determine the 5 34 rate of income surtax to be imposed based upon the most recent 5 35 available figures from state income taxes paid by taxpayers 6 1 residing in the political subdivision. The department shall 6 2 continue to make such calculations and certify the income 6 3 surtax rate to the county auditor or the auditors of the 6 4 counties in which the political subdivision is located with 6 5 adjustments as provided in this section until the principal 6 6 and interest on the bonds are paid in full. On or before 6 7 November 1 of each year in which the income surtax is 6 8 collected the director of revenue and finance shall deposit 6 9 with the treasurer of the political subdivision the entire 6 10 amount of income surtax collected from taxpayers residing in 6 11 the political subdivision. 6 12 5. The costs of administration shall be determined by the 6 13 department of revenue and finance, and shall be based on a 6 14 share of the total cost of administering the department, in 6 15 the same proportion as the amount of income surtax collected 6 16 is to the amount of state income taxes collected. 6 17 6. The director of revenue and finance shall administer 6 18 the income surtax imposed under this chapter and sections 6 19 422.4, 422.20 to 422.31, 422.68, and 422.72 to 422.75 shall 6 20 apply with respect to administration of the income surtax. 6 21 Sec. 7. NEW SECTION. 76.20 INCOME TAX RETURNS. 6 22 An income surtax imposed under section 76.19 shall be made 6 23 a part of the Iowa individual income tax return subject to the 6 24 conditions and restrictions set forth in section 422.21. The 6 25 director of revenue and finance shall provide on income tax 6 26 returns a requirement that each person required to file a re- 6 27 turn numerically identify the city of residence of the tax- 6 28 payer and the merged area in which the taxpayer resides. 6 29 Sec. 8. NEW SECTION. 76.21 PROPERTY TAX CREDIT &endash; 6 30 AGRICULTURAL AND RESIDENTIAL PROPERTY. 6 31 Local income surtax revenues collected under section 76.19 6 32 shall be distributed in the following manner: 6 33 Upon receipt of the revenues collected from the income 6 34 surtax, the county treasurer shall notify the county auditor 6 35 of the amount of income surtax revenues received. The auditor 7 1 shall determine the amount to be credited to each parcel of 7 2 real property located in the political subdivision and 7 3 assessed as agricultural or residential, and shall enter such 7 4 amount upon the tax lists as a credit against the tax levied 7 5 on each parcel of real property assessed as agricultural or 7 6 residential. The county treasurer shall show on each tax 7 7 receipt the amount of tax credit to be applied against 7 8 property taxes payable in the fiscal year following the year 7 9 in which the surtax was collected for each parcel of real 7 10 property assessed as agricultural or residential. In case of 7 11 change of ownership, the credit shall remain with the parcel. 7 12 The amount of the credit funded by revenues from the income 7 13 surtax imposed under section 76.19 shall be an amount equal to 7 14 a pro rata share based upon the ratio of the taxable value of 7 15 each parcel to receive the credit to the total taxable value 7 16 of the property to receive the credit. 7 17 Sec. 9. NEW SECTION. 76.22 DESIGNATION OF TAX. 7 18 An income surtax imposed under section 76.19 by a school 7 19 district shall be designated as a school debt service income 7 20 surtax, an income surtax imposed by a merged area shall be 7 21 designated as a merged area debt service income surtax, an 7 22 income surtax imposed under section 76.19 by a city shall be 7 23 designated a city debt service income surtax, and an income 7 24 surtax imposed under section 76.19 by a county shall be 7 25 designated a county debt service income surtax. 7 26 Sec. 10. Section 260C.21, Code 1995, is amended to read as 7 27 follows: 7 28 260C.21 ELECTION TO INCUR INDEBTEDNESS. 7 29 1. No indebtedness shall be incurred under section 260C.19 7 30 until authorized by an election. A proposition to incur 7 31 indebtedness and issue bonds for community college purposes 7 32 shall be deemedcarriedadopted in a merged area if approved 7 33 by a sixty percent majority of all voters voting on the 7 34 proposition in the area. However, if the board elects to 7 35 partially fund the bonds with revenues from a local income 8 1 surtax, in addition to property tax revenues, the ballot 8 2 proposition to authorize the issuance of the bonds shall be 8 3 submitted to the electorate pursuant to section 75.1, 8 4 subsection 2. 8 5 2. Notwithstanding subsection 1, if the costs of utilities 8 6 are paid by a community college with funds derived from the 8 7 levy authorized under section 260C.22, the community college 8 8 may use the general fund moneys that would have been used to 8 9 pay the costs of utilities for capital expenditures, may 8 10 invest the funds, or may incur indebtedness without an 8 11 election, provided that the payments on the indebtedness 8 12 incurred, and any interest on the indebtedness, can be made 8 13 using general funds of the community college and the total 8 14 payments on the principal and interest on the indebtedness do 8 15 not exceed the amount of the costs of the utilities. 8 16 Sec. 11. Section 296.1, Code 1995, is amended to read as 8 17 follows: 8 18 296.1 INDEBTEDNESS AUTHORIZED. 8 19 Subject to the approval of the voters thereof, school 8 20 districts areherebyauthorized to contract indebtedness and 8 21 to issue general obligation bonds to provide funds to defray 8 22 the cost of purchasing, building, furnishing, reconstructing, 8 23 repairing, improving or remodeling a schoolhouse or 8 24 schoolhouses and additions thereto, gymnasium, stadium, field 8 25 house, school bus garage, teachers' or superintendent's home 8 26 or homes, and procuring a site or sites therefor, or 8 27 purchasing land to add to a site already owned, or procuring 8 28 and improving a site for an athletic field, or improving a 8 29 site already owned for an athletic field, and for any one or 8 30 more of such purposes. Taxes for the payment ofsaidthe 8 31 bonds shall be levied or imposed in accordance with chapter 8 32 76, andsaidthe bonds shall mature withina period not8 33exceeding twenty years from date of issuethe period provided 8 34 in section 76.1, shall bear interest at a rate or rates not 8 35 exceeding that permitted by chapter 74A and shall be of such 9 1 form as the board of directors ofsuchthe school district 9 2 shall by resolution provide, but the aggregate indebtedness of 9 3 any school district shall not exceed five percent of the 9 4 actual value of the taxable property withinsaidthe school 9 5 district, as ascertained by the last preceding state and 9 6 county tax lists. 9 7 Sec. 12. Section 296.6, Code 1995, is amended to read as 9 8 follows: 9 9 296.6 BONDS. 9 10 If the vote in favor of the issuance of such bonds is equal 9 11 to at least sixty percent of the total vote cast for and 9 12 againstsaidthe proposition atsaidthe election, the board 9 13 of directors shall issue thesamebonds and make provision for 9 14 paymentthereofof the bonds. However, if the board of 9 15 directors of a school district elects to partially fund the 9 16 bonds with revenues from an income surtax, in addition to 9 17 property tax revenues, the ballot proposition to authorize the 9 18 issuance of the bonds shall be submitted to the electorate 9 19 pursuant to section 75.1, subsection 2. 9 20 Sec. 13. Section 298.14, unnumbered paragraph 1, Code 9 21 1995, is amended to read as follows: 9 22 For each fiscal year, the cumulative total of the percents 9 23 of surtax approved by the board of directors of a school 9 24 district and collected by the department of revenue and 9 25 finance under sections 257.21, 257.29, 279.54, and 298.2, and 9 26 the enrichment surtax under section 442.15, Code 1989, and an 9 27 income surtax collected by a political subdivision under 9 28 chapter 422D, shall not exceed twenty percent. In addition, 9 29 if an income surtax is imposed under section 76.19, the 9 30 cumulative total of percents of surtax imposed on any taxpayer 9 31 in a school district under sections 76.19, 257.21, 257.29, 9 32 279.54, 298.2, 442.15, Code 1989, and chapter 422D shall not 9 33 exceed twenty percent in the first year in which one or more 9 34 of these income surtaxes is imposed. 9 35 Sec. 14. Section 298.18, unnumbered paragraph 2, Code 10 1 1995, is amended to read as follows: 10 2 The amount estimatedand certified to apply onto pay 10 3 principal and interest for any one year shall not exceed an 10 4 amount that could be raised by a property tax levy equal to 10 5 two dollars and seventy cents per thousand dollars of the 10 6 assessed valuation of the taxable property of the school 10 7 corporation except as hereinafter provided. 10 8 Sec. 15. Section 298.18, unnumbered paragraph 4, Code 10 9 1995, is amended to read as follows: 10 10 The amount estimatedand certified to apply onto pay 10 11 principal and interest for any one year may exceed an amount 10 12 that could be raised by a property tax levy equal to two 10 13 dollars and seventy cents per thousand dollars of assessed 10 14 value by the amount approved by the voters of the school 10 15 corporation, but not exceeding four dollars and five cents per 10 16 thousand of the assessed value of the taxable property within 10 17 any school corporation, provided that thequalifiedregistered 10 18 voters of such school corporation have first approved such 10 19 increased amount at a special election, which may be held at 10 20 the same time as the regular school election. The proposition 10 21 submitted to the voters at such special election shall be in 10 22 substantially the following form: 10 23 Sec. 16. Section 298.18, unnumbered paragraph 6, Code 10 24 1995, is amended to read as follows: 10 25 Notice of the election shall be given by the county 10 26 commissioner of elections according to section 49.53. The 10 27 election shall be held on a date not less than four nor more 10 28 than twenty days after the last publication of the notice. At 10 29suchthe election the ballot used for the submission ofsaid10 30 the proposition shall be in substantially the form for 10 31 submitting special questions at general elections. The county 10 32 commissioner of elections shall conduct the election pursuant 10 33 to the provisions of chapters 39 to 53 and certify the results 10 34 to the board of directors.SuchThe proposition shall not be 10 35 deemedcarried oradopted unless the vote in favor ofsuchthe 11 1 proposition is equal to at least sixty percent of the total 11 2 vote cast for and againstsaidthe proposition atsaidthe 11 3 election.WheneverHowever, if the board of directors of a 11 4 school district elects to partially fund the bonds with 11 5 revenues from an income surtax, in addition to property tax 11 6 revenues, the ballot proposition shall be submitted to the 11 7 electorate pursuant to section 75.1, subsection 2. If such a 11 8 proposition has been approved by the voters of a school 11 9 corporation as hereinbefore provided, no further approval of 11 10 the voters ofsuchthe school corporation shall be required as 11 11 a result of any subsequent change in the boundaries ofsuch11 12 the school corporation. 11 13 Sec. 17. Section 298.22, unnumbered paragraph 1, Code 11 14 1995, is amended to read as follows: 11 15All of saidThe bonds shall be substantially in the form 11 16 provided for county bonds, but subject to changes that will 11 17 conform them to the action of the boardproviding therefor;11 18 shallrun not more than twenty yearsmature within the period 11 19 provided in section 76.1, and may be sooner paid if so 11 20 nominated in the bond; bear a rate of interest not exceeding 11 21 that permitted by chapter 74A, payable semiannually; be signed 11 22 by the president and countersigned by the secretary of the 11 23 board of directors; and shall not be disposed of for less than 11 24 par value, nor issued for other purposes than this chapter 11 25 provides. 11 26 Sec. 18. Section 331.442, subsection 4, Code Supplement 11 27 1995, is amended to read as follows: 11 28 4. The proposition of issuing bonds for a general county 11 29 purpose is notcarried oradopted unless the vote in favor of 11 30 the proposition is equal to at least sixty percent of the 11 31 total vote cast for and against the proposition at the 11 32 election. However, if the board elects to partially fund the 11 33 bonds with revenues from a local income surtax, in addition to 11 34 property tax revenues, the ballot proposition to authorize the 11 35 issuance of the bonds shall be submitted to the electorate 12 1 pursuant to section 75.1, subsection 2. If the proposition of 12 2 issuing the general county purpose bonds is approved by the 12 3 voters, the board may proceed with the issuance of the bonds. 12 4 Sec. 19. Section 331.442, subsection 5, paragraph a, 12 5 unnumbered paragraph 1, Code Supplement 1995, is amended to 12 6 read as follows: 12 7 Notwithstanding subsection 2, a board, in lieu of calling 12 8 an election, may institute proceedings for the issuance of 12 9 bonds for a general county purpose by causing a notice of the 12 10 proposal to issue the bonds, including a statement of the 12 11 amount and purpose of the bonds, the type or types of debt 12 12 service tax to be levied or imposed to pay principal and 12 13 interest on the bonds, and the right to petition for an 12 14 election, to be published as provided in section 331.305 at 12 15 least ten days prior to the meeting at which it is proposed to 12 16 take action for the issuance of the bonds subject to the 12 17 following limitations: 12 18 Sec. 20. Section 331.447, subsection 1, Code Supplement 12 19 1995, is amended to read as follows: 12 20 1. Taxes for the payment of general obligation bonds shall 12 21 be levied or imposed in accordance with chapter 76, and the 12 22 bonds are payable fromthe levy of unlimited ad valorem taxes12 23on all the taxable property within the county through its debt12 24service fund required by section 331.430a debt service 12 25 property tax or combination of a debt service property tax and 12 26 a debt service local income surtax, unlimited as to amount, 12 27 except that: 12 28 a. The amount estimatedand certified to applyto pay on 12 29 principal and interest for any one year shall not exceed an 12 30 amount that could be raised by a debt service property tax 12 31 levy equal to the maximum rate of tax, if any, provided by 12 32 this division for the purpose for which the bonds were issued. 12 33 If general obligation bonds are issued for different 12 34 categories, as provided in section 331.445, the maximum rate 12 35 of levies, if any, for each purpose shall apply separately to 13 1 that portion of the bond issue for that category and the 13 2 resolution authorizing the bond issue shall clearly set forth 13 3 the annual debt service requirements with respect to each 13 4 purpose in sufficient detail to indicate compliance with the 13 5 rate of tax levy, if any. 13 6 b. The amount estimatedand certified to applyto pay on 13 7 principal and interest for any one year may only exceed an 13 8 amount that could be raised by a debt service property tax 13 9 levy equal to the statutory rate of levy limit, if any, by the 13 10 amount that the registered voters of the county have approved 13 11 at a special election, which may be held at the same time as 13 12 the general election and may be included in the proposition 13 13 authorizing the issuance of bonds, if an election on the 13 14 proposition is necessary, or may be submitted as a separate 13 15 proposition at the same election or at a different election. 13 16 Notice of the election shall be given as specified in section 13 17 331.305. If the proposition includes issuing bonds and 13 18 increasing the levy limit, it shall be in substantially the 13 19 following form: 13 20 Shall the county of ........, state of Iowa, be authorized 13 21 to .......... (here state purpose of project) at a total cost 13 22 not exceeding $...... and issue its general obligation bonds 13 23 in an amount not exceeding $...... for that purpose, and be 13 24 authorized to levy annually a debt service property tax (or 13 25 debt service property tax and income surtax, if applicable), 13 26 which will produce an amount not exceeding ... dollars and ... 13 27 cents per thousand dollars of the assessed value of the 13 28 taxable property within the county to pay the principal of and 13 29 interest on the bonds? 13 30 If the proposition includes only increasing the levy limit 13 31 it shall be in substantially the following form: 13 32 Shall the county of ........, state of Iowa, be authorized 13 33 to levy annually a debt service property tax (or debt service 13 34 property tax and income surtax, if applicable), which will 13 35 produce an amount not exceeding ... dollars and ... cents per 14 1 thousand dollars of the assessed value of the taxable property 14 2 within the county to pay principal and interest on the bonded 14 3 indebtedness of the county for the purpose of ..........? 14 4 Sec. 21. Section 331.490, Code 1995, is amended to read as 14 5 follows: 14 6 331.490 CITIES SUBJECT TO DEBT SERVICE TAX LEVY &endash; RATES. 14 7 1. If a county and city have entered into an agreement to 14 8 create a joint special assessment district and issue county 14 9 general obligation bonds to fund the costs of a public 14 10 improvement benefiting that district, the county's debt ser- 14 11 vice property tax levy for the county general obligation bonds 14 12 shall not be levied against property located in any city 14 13 except a city which has entered into the agreement, and, if 14 14 applicable, the county's debt service income surtax for the 14 15 county general obligation bonds shall not be imposed on 14 16 taxpayers who reside in any city except a city which has 14 17 entered into the agreement. 14 18 2. Counties and cities entering into an agreement for a 14 19 joint special assessment district may provide in the agreement 14 20 for a different rate of the county's debt service tax levy 14 21 against property in areas of the county outside a city and 14 22 property within the cities, and, if applicable, for a 14 23 different rate of the county's debt service income surtax to 14 24 be imposed on taxpayers residing outside the cities and those 14 25 residing within each city. 14 26 Sec. 22. Section 384.26, subsection 2, Code Supplement 14 27 1995, is amended to read as follows: 14 28 2. Before the council may institute proceedings for the 14 29 issuance of bonds for a general corporate purpose, it shall 14 30 call a special city election to vote upon the question of 14 31 issuing the bonds. At the election the proposition must be 14 32 submitted in substantially the following form: 14 33 Shall the ............ (insert the name of the city) issue 14 34 its bonds in an amount not exceeding the amount of $.... for 14 35 the purpose of .........., such bonds to be payable from a 15 1 property tax levied on all taxable property within the city 15 2 (and income surtax to be imposed on the state income tax of 15 3 each income taxpayer residing in the city)? 15 4 Sec. 23. Section 384.26, subsection 4, Code Supplement 15 5 1995, is amended to read as follows: 15 6 4. The proposition of issuing general corporate purpose 15 7 bonds is notcarried oradopted unless the vote in favor of 15 8 the proposition is equal to at least sixty percent of the 15 9 total vote cast for and against the proposition at the 15 10 election. However, if the city council elects to partially 15 11 fund the bonds with revenues from a local income surtax, in 15 12 addition to property tax revenues, the ballot proposition to 15 13 authorize the issuance of the bonds shall be submitted to the 15 14 electorate pursuant to section 75.1, subsection 2. If the 15 15 proposition of issuing the general corporate purpose bonds is 15 16 approved by the voters, the city may proceed with the issuance 15 17 of the bonds. 15 18 Sec. 24. Section 384.26, subsection 5, paragraph a, 15 19 unnumbered paragraph 1, Code Supplement 1995, is amended to 15 20 read as follows: 15 21 Notwithstanding the provisions of subsection 2, a council 15 22 may, in lieu of calling an election, institute proceedings for 15 23 the issuance of bonds for a general corporate purpose by 15 24 causing a notice of the proposal to issue the bonds, including 15 25 a statement of the amount and purpose of the bonds, the type 15 26 or types of debt service tax to be levied or imposed to pay 15 27 principal and interest of the bonds, together with the maximum 15 28 rate of interest which the bonds are to bear, and the right to 15 29 petition for an election, to be published at least once in a 15 30 newspaper of general circulation within the city at least ten 15 31 days prior to the meeting at which it is proposed to take 15 32 action for the issuance of the bonds subject to the following 15 33 limitations: 15 34 Sec. 25. Section 384.32, Code 1995, is amended to read as 15 35 follows 16 1 384.32 TAX TO PAY. 16 2 Taxes for the payment of general obligation bonds must be 16 3 levied in accordance with chapter 76, and the bonds are 16 4 payable from the levy ofunlimited ad valorem taxes on all the16 5taxable property within the city through its debt service fund16 6authorized by section 384.4a debt service property tax or a 16 7 combination of a debt service property tax and a debt service 16 8 income surtax, unlimited as to amount. 16 9 Sec. 26. APPLICABILITY DATE. This Act applies to bond 16 10 issuances approved at elections held on or after the effective 16 11 date of this Act. 16 12 EXPLANATION 16 13 This bill authorizes general obligation bonds to be issued 16 14 by certain political subdivisions which will be partially 16 15 funded by a local income surtax imposed on individuals, in 16 16 addition to property taxes. Sixty percent of the principal 16 17 and interest of the bonds shall be funded by income surtax. 16 18 The question of whether to impose a local income surtax to 16 19 partially fund the bonds shall be included in the bond 16 20 issuance ballot proposition. If principal and interest on the 16 21 bonds are to be funded by property tax and income surtax, the 16 22 required percentage of votes needed to authorize issuance of 16 23 the bonds is reduced from 60 percent to a majority. 16 24 The bill also provides that income surtax funds collected 16 25 shall be credited to each parcel of real property in the 16 26 political subdivision which is assessed as agricultural or 16 27 residential property. 16 28 The bill provides that a bond proposition which includes an 16 29 income surtax may not be presented to the electorate if, in 16 30 the first year the surtax is imposed, the total surtax imposed 16 31 on any taxpayer in the political subdivision would exceed 20 16 32 percent. The bill extends from six months to 12 months the 16 33 time period that must elapse before a defeated bond proposal 16 34 may be resubmitted to the electorate. The property tax levied 16 35 or income surtax imposed are to be designated as debt service 17 1 taxes for the payment of principal and interest on general 17 2 obligation bonds. 17 3 This bill applies to bonds issued by a county, city, school 17 4 districts, and community colleges. 17 5 LSB 3310XS 76 17 6 sc/sc/14.1
Text: SF02128 Text: SF02130 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: Senate Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Mon Mar 4 09:39:45 CST 1996
URL: /DOCS/GA/76GA/Legislation/SF/02100/SF02129/960206.html
jhf