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PAG LIN 1 1 Section 1. Section 75.1, Code 1995, is amended to read as 1 2 follows: 1 3 75.1 BONDS – ELECTION – 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 the annual levy of 1 14 property tax to pay principal and interest on bonds issued by 1 15 a county, school corporation, or city is to be offset with 1 16 revenue from a local income surtax pursuant to section 76.21, 1 17 the proposition shall so state and the proposition is adopted 1 18 if the vote in favor of the proposition is equal to a majority 1 19 of the total vote cast for and against the proposition at the 1 20 election. However, a bond issuance proposition proposing 1 21 imposition of an income surtax shall not be presented to the 1 22 electors if in the first year the income surtax is imposed the 1 23 total of all income surtaxes authorized by law and imposed in 1 24 that year on any taxpayer in the political subdivision 1 25 imposing the surtax would exceed twenty percent. Upon request 1 26 of the 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 againstsaidthe 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 ofsixtwelve 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 7Hereafter issuesIssues of bondsof every kind and2 8characterby counties, cities, and school corporations shall 2 9 be consecutively numbered. The annual levy of property tax, 2 10 or combination of property tax levy and income surtax imposed 2 11 as provided in section 76.19, shall be sufficient to pay the 2 12 interest and approximatelysuchthat portion of the principal 2 13 of the bonds as will retire them in a period not exceeding 2 14twentytwenty-two years from date of issue. Each issue of 2 15 bonds shall be scheduled to mature serially in the same order 2 16 as numbered. 2 17 Sec. 3. Section 76.2, Code 1995, is amended to read as 2 18 follows: 2 19 76.2 MANDATORY LEVY – OBLIGATIONS IN ANTICIPATION OF 2 20 LEVY. 2 21 The governing authority of these political subdivisions 2 22 before issuing bonds shall, by resolution, provide for the 2 23 assessment of an annual levy upon all the taxable property in 2 24 the political subdivision, or the assessment of an annual 2 25 property tax levy and imposition of an income surtax under 2 26 section 76.19, sufficient to pay theinterest andprincipal 2 27 and interest of the bonds within a period named not exceeding 2 28twenty yearsthat provided in section 76.1. A certified copy 2 29 of this resolution shall be filed with the county auditor or 2 30 the auditors of the counties in which the political 2 31 subdivision is located; and the filing shall make it a duty of 2 32 the auditors to enter annually this levy for collection from 2 33 the taxable property within the boundaries of the political 2 34 subdivision until funds are realized to pay the bonds in full. 2 35 The property tax levy shall continue to be made against 3 1 property that is severed from the political subdivision and 3 2 the income surtax shall continue to be imposed upon the 3 3 residents of any area severed from the political subdivision 3 4 after the filing of the resolution until funds are realized to 3 5 pay the bonds in full. 3 6 Ifthea resolution which does not include imposition of an 3 7 income surtax is filed prior to April 1, or May 1,if the 3 8 political subdivision is a school district, the annual levy 3 9 shall begin with the tax levy for collection commencing July 1 3 10 of that year. If the resolution is filed after April 1, or 3 11 May 1,in the case of a school district, or if the resolution 3 12 includes imposition of an income surtax, the annual property 3 13 tax levy shall begin with the tax levy for collection in the 3 14 next succeeding fiscal year. If the resolution includes the 3 15 imposition of a local income surtax and it is filed with the 3 16 department of revenue and finance prior to August 1, the 3 17 imposition of the surtax is retroactive to January 1 of that 3 18 calendar year. If the resolution is filed with the department 3 19 of revenue and finance on or after August 1, the imposition of 3 20 the income surtax begins on January 1 of the next calendar 3 21 year. However, the governing authority of a political 3 22 subdivision may adjust a levy of taxes made under this section 3 23 for the purpose of adjusting the annual levies and collections 3 24 and income surtax rate for property severed from the political 3 25 subdivision, subject to the approval of the director of the 3 26 department of management. 3 27 If funds, including reserves and amounts available for 3 28 temporary transfer, arefound to beinsufficient to pay in 3 29 full any installment of principal or interest, a public issuer 3 30 of bonds may anticipate the next levy of property taxes 3 31 pursuant to this section or the imposition of an income surtax 3 32 under section 76.19 in the manner provided in chapter 74, 3 33 whether the taxes so anticipated are to be collected in the 3 34 same or a future fiscal year. 3 35 To further secure the payment of the bonds, the governing 4 1 authority shall, by resolution, provide for the assessment of 4 2 an annual levy of a standby tax upon all taxable property 4 3 within the political subdivision. A copy of the resolution 4 4 shall be sent to the county auditor of each county in which 4 5 the political subdivision is located. The revenues from the 4 6 standby tax shall be deposited in a special fund and shall be 4 7 expended only for the payment of principal and interest on the 4 8 bonds issued as provided in this section, when the revenue 4 9 from an income surtax as provided in section 76.19 is 4 10 insufficient. Reserves shall not be built up in this fund in 4 11 anticipation of a projected default. The governing authority 4 12 shall adjust the annual standby property tax levy for each 4 13 year to reflect the amount of revenues in the special fund and 4 14 the amount of principal and interest which is due in that 4 15 year. 4 16 Sec. 4. Section 76.4, Code 1995, is amended to read as 4 17 follows: 4 18 76.4 PERMISSIVE APPLICATION OF FUNDS. 4 19WheneverIf the governing authority ofsucha political 4 20 subdivisionshall havehas on hand funds derived fromany4 21othera source other than taxation which may be appropriated 4 22 to the payment either ofinterest orprincipal or interest, or 4 23 both principal and interest of such bonds,suchthe funds may 4 24 besoappropriated and used and the property tax levy and 4 25 income surtax rate, if imposed, for the payment of the bonds 4 26 correspondingly reduced. 4 27 Sec. 5. Section 76.7, Code 1995, is amended to read as 4 28 follows: 4 29 76.7 PARTICULAR BONDS AFFECTED – PAYMENT. 4 30 Counties, cities, and school corporations may at any time 4 31or timesextend or renew any legal indebtedness or any part 4 32thereofof the indebtedness theymayhave represented by bonds 4 33 or certificates wheresuchthe indebtedness is payable from a 4 34 limited annual property tax or from a voted annual property 4 35 tax, or from an income surtax imposed under section 76.19, and 5 1 may by resolution fund or refund thesamelegal indebtedness 5 2 and issue bondsthereforrunning not more than twenty years to 5 3 be known as funding or refunding bonds, and make provision for 5 4 the payment of the principal and interestthereoffrom the 5 5 proceeds of an annual property tax, or annual property tax and 5 6 income surtax, for the period covered bysuchthe bonds 5 7 similar to the tax authorized by law or by the electors for 5 8 the payment of the indebtednesssoextended or renewed. 5 9 Sec. 6. NEW SECTION. 76.19 INCOME SURTAX. 5 10 1. An income surtax may be imposed by a political 5 11 subdivision as provided in this section, but only if 5 12 authorized by the electors as provided in section 75.1. 5 13 2. The income surtax shall be imposed upon state income 5 14 taxes computed under section 422.5, less credits allowed in 5 15 sections 422.11A, 422.11B, 422.11C, 422.12, and 422.12B, and 5 16 shall be imposed upon the state income tax for each calendar 5 17 year, or for a taxpayer's fiscal year ending during the second 5 18 half of that calendar year or the first half of the succeeding 5 19 calendar year, and shall be imposed on all taxpayers residing 5 20 in the political subdivision on the last day of the applicable 5 21 tax year, and on taxpayers residing in areas severed from the 5 22 political subdivision as provided in section 76.2. 5 23 3. The income surtax shall be imposed to collect an amount 5 24 that is equivalent to sixty percent of the sum of the prin- 5 25 cipal and interest of the bonds over the life of the bonds. 5 26 The rate of the income surtax may be adjusted in any year for 5 27 the sole purpose of ensuring that an amount equivalent to 5 28 sixty percent of the principal and interest over the life of 5 29 the bonds is collected. 5 30 4. At the time of the annual levy under section 76.2, the 5 31 governing authority of the political subdivision shall also 5 32 provide in the resolution for the imposition of the income 5 33 surtax and shall certify to the department of management such 5 34 sum expressed in dollars. The department shall determine the 5 35 rate of income surtax to be imposed based upon the most recent 6 1 available figures from state income taxes paid by taxpayers 6 2 residing in the political subdivision. The department shall 6 3 continue to make such calculations and certify the income 6 4 surtax rate to the county auditor or the auditors of the 6 5 counties in which the political subdivision is located with 6 6 adjustments as provided in this section until the principal 6 7 and interest on the bonds are paid in full. On or before 6 8 November 1 of each year in which the income surtax is 6 9 collected the director of revenue and finance shall deposit 6 10 with the treasurer of the political subdivision the entire 6 11 amount of income surtax collected from taxpayers residing in 6 12 the political subdivision. 6 13 5. The costs of administration shall be determined by the 6 14 department of revenue and finance, and shall be based on a 6 15 share of the total cost of administering the department, in 6 16 the same proportion as the amount of income surtax collected 6 17 is to the amount of state income taxes collected. 6 18 6. The director of revenue and finance shall administer 6 19 the income surtax imposed under this chapter and sections 6 20 422.4, 422.20 to 422.31, 422.68, and 422.72 to 422.75 shall 6 21 apply with respect to administration of the income surtax. 6 22 Sec. 7. NEW SECTION. 76.20 INCOME TAX RETURNS. 6 23 An income surtax imposed under section 76.19 shall be made 6 24 a part of the Iowa individual income tax return subject to the 6 25 conditions and restrictions set forth in section 422.21. The 6 26 director of revenue and finance shall provide on income tax 6 27 returns a requirement that each person required to file a re- 6 28 turn numerically identify the city of residence of the tax- 6 29 payer and the merged area in which the taxpayer resides. 6 30 Sec. 8. NEW SECTION. 76.21 PROPERTY TAX CREDIT – 6 31 AGRICULTURAL AND RESIDENTIAL PROPERTY. 6 32 Local income surtax revenues collected under section 76.19 6 33 shall be used to offset the annual levy of property tax on 6 34 property assessed as agricultural or residential property. 6 35 The surtax shall be distributed in the following manner: 7 1 Upon receipt of the revenues collected from the income 7 2 surtax, the county treasurer shall notify the county auditor 7 3 of the amount of income surtax revenues received. The auditor 7 4 shall determine the amount to be credited to each parcel of 7 5 real property located in the political subdivision and 7 6 assessed as agricultural or residential, and shall enter such 7 7 amount upon the tax lists as a credit against the tax levied 7 8 on each parcel of real property assessed as agricultural or 7 9 residential. The county treasurer shall show on each tax 7 10 receipt the amount of tax credit to be applied against 7 11 property taxes payable in the fiscal year following the year 7 12 in which the surtax was collected for each parcel of real 7 13 property assessed as agricultural or residential. In case of 7 14 change of ownership, the credit shall remain with the parcel. 7 15 The amount of the credit funded by revenues from the income 7 16 surtax imposed under section 76.19 shall be an amount equal to 7 17 a pro rata share based upon the ratio of the taxable value of 7 18 each parcel to receive the credit to the total taxable value 7 19 of the property to receive the credit. 7 20 Sec. 9. NEW SECTION. 76.22 DESIGNATION OF TAX. 7 21 An income surtax imposed under section 76.19 by a school 7 22 district shall be designated as a school debt service income 7 23 surtax, an income surtax imposed by a merged area shall be 7 24 designated as a merged area debt service income surtax, an 7 25 income surtax imposed under section 76.19 by a city shall be 7 26 designated a city debt service income surtax, and an income 7 27 surtax imposed under section 76.19 by a county shall be 7 28 designated a county debt service income surtax. 7 29 Sec. 10. Section 260C.21, Code 1995, is amended to read as 7 30 follows: 7 31 260C.21 ELECTION TO INCUR INDEBTEDNESS. 7 32 1. No indebtedness shall be incurred under section 260C.19 7 33 until authorized by an election. A proposition to incur 7 34 indebtedness and issue bonds for community college purposes 7 35 shall be deemedcarriedadopted in a merged area if approved 8 1 by a sixty percent majority of all voters voting on the 8 2 proposition in the area. However, if the board elects to 8 3 offset the annual property tax levy with revenues from a local 8 4 income surtax pursuant to section 76.21, the ballot 8 5 proposition to authorize the issuance of the bonds shall be 8 6 submitted to the electorate pursuant to section 75.1, 8 7 subsection 2. 8 8 2. Notwithstanding subsection 1, if the costs of utilities 8 9 are paid by a community college with funds derived from the 8 10 levy authorized under section 260C.22, the community college 8 11 may use the general fund moneys that would have been used to 8 12 pay the costs of utilities for capital expenditures, may 8 13 invest the funds, or may incur indebtedness without an 8 14 election, provided that the payments on the indebtedness 8 15 incurred, and any interest on the indebtedness, can be made 8 16 using general funds of the community college and the total 8 17 payments on the principal and interest on the indebtedness do 8 18 not exceed the amount of the costs of the utilities. 8 19 Sec. 11. Section 296.1, Code 1995, is amended to read as 8 20 follows: 8 21 296.1 INDEBTEDNESS AUTHORIZED. 8 22 Subject to the approval of the voters thereof, school 8 23 districts areherebyauthorized to contract indebtedness and 8 24 to issue general obligation bonds to provide funds to defray 8 25 the cost of purchasing, building, furnishing, reconstructing, 8 26 repairing, improving or remodeling a schoolhouse or 8 27 schoolhouses and additions thereto, gymnasium, stadium, field 8 28 house, school bus garage, teachers' or superintendent's home 8 29 or homes, and procuring a site or sites therefor, or 8 30 purchasing land to add to a site already owned, or procuring 8 31 and improving a site for an athletic field, or improving a 8 32 site already owned for an athletic field, and for any one or 8 33 more of such purposes. Taxes for the payment ofsaidthe 8 34 bonds shall be levied or imposed in accordance with chapter 8 35 76, andsaidthe bonds shall mature withina period not9 1exceeding twenty years from date of issuethe period provided 9 2 in section 76.1, shall bear interest at a rate or rates not 9 3 exceeding that permitted by chapter 74A and shall be of such 9 4 form as the board of directors ofsuchthe school district 9 5 shall by resolution provide, but the aggregate indebtedness of 9 6 any school district shall not exceed five percent of the 9 7 actual value of the taxable property withinsaidthe school 9 8 district, as ascertained by the last preceding state and 9 9 county tax lists. 9 10 Sec. 12. Section 296.6, Code 1995, is amended to read as 9 11 follows: 9 12 296.6 BONDS. 9 13 If the vote in favor of the issuance of such bonds is equal 9 14 to at least sixty percent of the total vote cast for and 9 15 againstsaidthe proposition atsaidthe election, the board 9 16 of directors shall issue thesamebonds and make provision for 9 17 paymentthereofof the bonds. However, if the board of 9 18 directors of a school district elects to offset the annual 9 19 property tax levy with revenues from an income surtax pursuant 9 20 to section 76.21, the ballot proposition to authorize the 9 21 issuance of the bonds shall be submitted to the electorate 9 22 pursuant to section 75.1, subsection 2. 9 23 Sec. 13. Section 298.14, unnumbered paragraph 1, Code 9 24 1995, is amended to read as follows: 9 25 For each fiscal year, the cumulative total of the percents 9 26 of surtax approved by the board of directors of a school 9 27 district and collected by the department of revenue and 9 28 finance under sections 257.21, 257.29, 279.54, and 298.2, and 9 29 the enrichment surtax under section 442.15, Code 1989, and an 9 30 income surtax collected by a political subdivision under 9 31 chapter 422D, shall not exceed twenty percent. In addition, 9 32 if an income surtax is imposed under section 76.19, the 9 33 cumulative total of percents of surtax imposed on any taxpayer 9 34 in a school district under sections 76.19, 257.21, 257.29, 9 35 279.54, 298.2, 442.15, Code 1989, and chapter 422D shall not 10 1 exceed twenty percent in the first year in which one or more 10 2 of these income surtaxes is imposed. 10 3 Sec. 14. Section 298.18, unnumbered paragraph 2, Code 10 4 1995, is amended to read as follows: 10 5 The amount estimatedand certified to apply onto pay 10 6 principal and interest for any one year shall not exceed an 10 7 amount that could be raised by a property tax levy equal to 10 8 two dollars and seventy cents per thousand dollars of the 10 9 assessed valuation of the taxable property of the school 10 10 corporation except as hereinafter provided. 10 11 Sec. 15. Section 298.18, unnumbered paragraph 4, Code 10 12 1995, is amended to read as follows: 10 13 The amount estimatedand certified to apply onto pay 10 14 principal and interest for any one year may exceed an amount 10 15 that could be raised by a property tax levy equal to two 10 16 dollars and seventy cents per thousand dollars of assessed 10 17 value by the amount approved by the voters of the school 10 18 corporation, but not exceeding four dollars and five cents per 10 19 thousand of the assessed value of the taxable property within 10 20 any school corporation, provided that thequalifiedregistered 10 21 voters of such school corporation have first approved such 10 22 increased amount at a special election, which may be held at 10 23 the same time as the regular school election. The proposition 10 24 submitted to the voters at such special election shall be in 10 25 substantially the following form: 10 26 Sec. 16. Section 298.18, unnumbered paragraph 6, Code 10 27 1995, is amended to read as follows: 10 28 Notice of the election shall be given by the county 10 29 commissioner of elections according to section 49.53. The 10 30 election shall be held on a date not less than four nor more 10 31 than twenty days after the last publication of the notice. At 10 32suchthe election the ballot used for the submission ofsaid10 33 the proposition shall be in substantially the form for 10 34 submitting special questions at general elections. The county 10 35 commissioner of elections shall conduct the election pursuant 11 1 to the provisions of chapters 39 to 53 and certify the results 11 2 to the board of directors.SuchThe proposition shall not be 11 3 deemedcarried oradopted unless the vote in favor ofsuchthe 11 4 proposition is equal to at least sixty percent of the total 11 5 vote cast for and againstsaidthe proposition atsaidthe 11 6 election.WheneverHowever, if the board of directors of a 11 7 school district elects to offset the annual property tax levy 11 8 with revenues from an income surtax pursuant to section 76.21, 11 9 the ballot proposition shall be submitted to the electorate 11 10 pursuant to section 75.1, subsection 2. If such a proposition 11 11 has been approved by the voters of a school corporation as 11 12 hereinbefore provided, no further approval of the voters of 11 13suchthe school corporation shall be required as a result of 11 14 any subsequent change in the boundaries ofsuchthe school 11 15 corporation. 11 16 Sec. 17. Section 298.22, unnumbered paragraph 1, Code 11 17 1995, is amended to read as follows: 11 18All of saidThe bonds shall be substantially in the form 11 19 provided for county bonds, but subject to changes that will 11 20 conform them to the action of the boardproviding therefor;11 21 shallrun not more than twenty yearsmature within the period 11 22 provided in section 76.1, and may be sooner paid if so 11 23 nominated in the bond; bear a rate of interest not exceeding 11 24 that permitted by chapter 74A, payable semiannually; be signed 11 25 by the president and countersigned by the secretary of the 11 26 board of directors; and shall not be disposed of for less than 11 27 par value, nor issued for other purposes than this chapter 11 28 provides. 11 29 Sec. 18. Section 331.442, subsection 4, Code Supplement 11 30 1995, is amended to read as follows: 11 31 4. The proposition of issuing bonds for a general county 11 32 purpose is notcarried oradopted unless the vote in favor of 11 33 the proposition is equal to at least sixty percent of the 11 34 total vote cast for and against the proposition at the 11 35 election. However, if the board elects to offset the annual 12 1 property tax levy with revenues from a local income surtax 12 2 pursuant to section 76.21, the ballot proposition to authorize 12 3 the issuance of the bonds shall be submitted to the electorate 12 4 pursuant to section 75.1, subsection 2. If the proposition of 12 5 issuing the general county purpose bonds is approved by the 12 6 voters, the board may proceed with the issuance of the bonds. 12 7 Sec. 19. Section 331.442, subsection 5, paragraph a, 12 8 unnumbered paragraph 1, Code Supplement 1995, is amended to 12 9 read as follows: 12 10 Notwithstanding subsection 2, a board, in lieu of calling 12 11 an election, may institute proceedings for the issuance of 12 12 bonds for a general county purpose by causing a notice of the 12 13 proposal to issue the bonds, including a statement of the 12 14 amount and purpose of the bonds, the type or types of debt 12 15 service tax to be levied or imposed to pay principal and 12 16 interest on the bonds, and the right to petition for an 12 17 election, to be published as provided in section 331.305 at 12 18 least ten days prior to the meeting at which it is proposed to 12 19 take action for the issuance of the bonds subject to the 12 20 following limitations: 12 21 Sec. 20. Section 331.447, subsection 1, Code Supplement 12 22 1995, is amended to read as follows: 12 23 1. Taxes for the payment of general obligation bonds shall 12 24 be levied or imposed in accordance with chapter 76, and the 12 25 bonds are payable fromthe levy of unlimited ad valorem taxes12 26on all the taxable property within the county through its debt12 27service fund required by section 331.430a debt service 12 28 property tax or combination of a debt service property tax and 12 29 a debt service local income surtax, unlimited as to amount, 12 30 except that: 12 31 a. The amount estimatedand certified to applyto pay on 12 32 principal and interest for any one year shall not exceed an 12 33 amount that could be raised by a debt service property tax 12 34 levy equal to the maximum rate of tax, if any, provided by 12 35 this division for the purpose for which the bonds were issued. 13 1 If general obligation bonds are issued for different 13 2 categories, as provided in section 331.445, the maximum rate 13 3 of levies, if any, for each purpose shall apply separately to 13 4 that portion of the bond issue for that category and the 13 5 resolution authorizing the bond issue shall clearly set forth 13 6 the annual debt service requirements with respect to each 13 7 purpose in sufficient detail to indicate compliance with the 13 8 rate of tax levy, if any. 13 9 b. The amount estimatedand certified to applyto pay on 13 10 principal and interest for any one year may only exceed an 13 11 amount that could be raised by a debt service property tax 13 12 levy equal to the statutory rate of levy limit, if any, by the 13 13 amount that the registered voters of the county have approved 13 14 at a special election, which may be held at the same time as 13 15 the general election and may be included in the proposition 13 16 authorizing the issuance of bonds, if an election on the 13 17 proposition is necessary, or may be submitted as a separate 13 18 proposition at the same election or at a different election. 13 19 Notice of the election shall be given as specified in section 13 20 331.305. If the proposition includes issuing bonds and 13 21 increasing the levy limit, it shall be in substantially the 13 22 following form: 13 23 Shall the county of ........, state of Iowa, be authorized 13 24 to .......... (here state purpose of project) at a total cost 13 25 not exceeding $...... and issue its general obligation bonds 13 26 in an amount not exceeding $...... for that purpose, and be 13 27 authorized to levy annually a debt service property tax (or 13 28 debt service property tax, and income surtax to offset the 13 29 property tax, if applicable), which will produce an amount not 13 30 exceeding ... dollars and ... cents per thousand dollars of 13 31 the assessed value of the taxable property within the county 13 32 to pay the principal of and interest on the bonds? 13 33 If the proposition includes only increasing the levy limit 13 34 it shall be in substantially the following form: 13 35 Shall the county of ........, state of Iowa, be authorized 14 1 to levy annually a debt service property tax (or debt service 14 2 property tax and income surtax to offset the property tax, if 14 3 applicable), which will produce an amount not exceeding ... 14 4 dollars and ... cents per thousand dollars of the assessed 14 5 value of the taxable property within the county to pay 14 6 principal and interest on the bonded indebtedness of the 14 7 county for the purpose of ..........? 14 8 Sec. 21. Section 331.490, Code 1995, is amended to read as 14 9 follows: 14 10 331.490 CITIES SUBJECT TO DEBT SERVICE TAX LEVY – RATES. 14 11 1. If a county and city have entered into an agreement to 14 12 create a joint special assessment district and issue county 14 13 general obligation bonds to fund the costs of a public 14 14 improvement benefiting that district, the county's debt ser- 14 15 vice property tax levy for the county general obligation bonds 14 16 shall not be levied against property located in any city 14 17 except a city which has entered into the agreement, and, if 14 18 applicable, the county's debt service income surtax for the 14 19 county general obligation bonds shall not be imposed on 14 20 taxpayers who reside in any city except a city which has 14 21 entered into the agreement. 14 22 2. Counties and cities entering into an agreement for a 14 23 joint special assessment district may provide in the agreement 14 24 for a different rate of the county's debt service tax levy 14 25 against property in areas of the county outside a city and 14 26 property within the cities, and, if applicable, for a 14 27 different rate of the county's debt service income surtax to 14 28 be imposed on taxpayers residing outside the cities and those 14 29 residing within each city. 14 30 Sec. 22. Section 384.26, subsection 2, Code Supplement 14 31 1995, is amended to read as follows: 14 32 2. Before the council may institute proceedings for the 14 33 issuance of bonds for a general corporate purpose, it shall 14 34 call a special city election to vote upon the question of 14 35 issuing the bonds. At the election the proposition must be 15 1 submitted in substantially the following form: 15 2 Shall the ............ (insert the name of the city) issue 15 3 its bonds in an amount not exceeding the amount of $.... for 15 4 the purpose of .........., such bonds to be payable from a 15 5 property tax levied on all taxable property within the city 15 6 (and income surtax to offset the property tax to be imposed on 15 7 the state income tax of each income taxpayer residing in the 15 8 city)? 15 9 Sec. 23. Section 384.26, subsection 4, Code Supplement 15 10 1995, is amended to read as follows: 15 11 4. The proposition of issuing general corporate purpose 15 12 bonds is notcarried oradopted unless the vote in favor of 15 13 the proposition is equal to at least sixty percent of the 15 14 total vote cast for and against the proposition at the 15 15 election. However, if the city council elects to offset the 15 16 annual property tax levy with revenues from a local income 15 17 surtax pursuant to section 76.21, the ballot proposition to 15 18 authorize the issuance of the bonds shall be submitted to the 15 19 electorate pursuant to section 75.1, subsection 2. If the 15 20 proposition of issuing the general corporate purpose bonds is 15 21 approved by the voters, the city may proceed with the issuance 15 22 of the bonds. 15 23 Sec. 24. Section 384.26, subsection 5, paragraph a, 15 24 unnumbered paragraph 1, Code Supplement 1995, is amended to 15 25 read as follows: 15 26 Notwithstanding the provisions of subsection 2, a council 15 27 may, in lieu of calling an election, institute proceedings for 15 28 the issuance of bonds for a general corporate purpose by 15 29 causing a notice of the proposal to issue the bonds, including 15 30 a statement of the amount and purpose of the bonds, the type 15 31 or types of debt service tax to be levied or imposed to pay 15 32 principal and interest of the bonds, together with the maximum 15 33 rate of interest which the bonds are to bear, and the right to 15 34 petition for an election, to be published at least once in a 15 35 newspaper of general circulation within the city at least ten 16 1 days prior to the meeting at which it is proposed to take 16 2 action for the issuance of the bonds subject to the following 16 3 limitations: 16 4 Sec. 25. Section 384.32, Code 1995, is amended to read as 16 5 follows 16 6 384.32 TAX TO PAY. 16 7 Taxes for the payment of general obligation bonds must be 16 8 levied in accordance with chapter 76, and the bonds are 16 9 payable from the levy ofunlimited ad valorem taxes on all the16 10taxable property within the city through its debt service fund16 11authorized by section 384.4a debt service property tax or a 16 12 combination of a debt service property tax and a debt service 16 13 income surtax, unlimited as to amount. 16 14 Sec. 26. APPLICABILITY DATE. This Act applies to bond 16 15 issuances approved at elections held on or after the effective 16 16 date of this Act. 16 17 EXPLANATION 16 18 This bill authorizes general obligation bonds to be issued 16 19 by certain political subdivisions which will be partially 16 20 funded by a local income surtax imposed on individuals, in 16 21 addition to property taxes. The bill provides that income 16 22 surtax funds collected shall be credited to each parcel of 16 23 real property in the political subdivision which is assessed 16 24 as agricultural or residential property. The income surtax 16 25 shall offset property taxes in an amount equivalent to 60 16 26 percent of the principal and interest of the bonds. The 16 27 question of whether to impose a local income surtax to offset 16 28 the property tax levy for the bonds shall be included in the 16 29 bond issuance ballot proposition. If principal and interest 16 30 on the bonds are to be funded by property tax, and a portion 16 31 of that property tax is to be offset with revenues from an 16 32 income surtax, the required percentage of votes needed to 16 33 authorize issuance of the bonds is reduced from 60 percent to 16 34 a majority. 16 35 The bill provides that a bond proposition which includes an 17 1 income surtax may not be presented to the electorate if, in 17 2 the first year the surtax is imposed, the total surtax imposed 17 3 on any taxpayer in the political subdivision would exceed 20 17 4 percent. The bill extends from six months to 12 months the 17 5 time period that must elapse before a defeated bond proposal 17 6 may be resubmitted to the electorate. The property tax levied 17 7 or income surtax imposed are to be designated as debt service 17 8 taxes for the payment of principal and interest on general 17 9 obligation bonds. 17 10 This bill applies to bonds issued by a county, city, school 17 11 districts, and community colleges. 17 12 LSB 3310SV 76 17 13 sc/sc/14
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