Text: SSB00352 Text: SSB00354 Text: SSB00300 - SSB00399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422B.1, Code 1995, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 9. Notwithstanding subsection 8 or any 1 4 other contrary provision of this chapter, a local option sales 1 5 and services tax shall not be repealed or reduced in rate if 1 6 obligations are outstanding which are payable as provided in 1 7 section 422B.12, unless funds sufficient to pay the principal, 1 8 interest, and premium, if any, on the outstanding obligations 1 9 at and prior to maturity have been properly set aside and 1 10 pledged for that purpose. 1 11 Sec. 2. NEW SECTION. 422B.12 ISSUANCE OF BONDS. 1 12 1. For purposes of this section unless the context 1 13 otherwise requires: 1 14 a. "Bond issuer" or "issuer" means a city, a county, or a 1 15 secondary recipient. 1 16 b. "Designated portion" means the portion of the local 1 17 option sales and services tax revenues which is authorized to 1 18 be expended for one or a combination of purposes under an 1 19 adopted public measure. 1 20 c. "Secondary recipient" means a political subdivision of 1 21 the state which is to receive revenues from a local option 1 22 sales and services tax over a period of years pursuant to the 1 23 terms of a chapter 28E agreement with one or more cities or 1 24 counties. 1 25 2. An issuer of public bonds which is a recipient of 1 26 revenues from a local option sales and services tax imposed 1 27 pursuant to this chapter may issue bonds in anticipation of 1 28 the collection of one or more designated portions of the local 1 29 option sales and services tax and may pledge irrevocably an 1 30 amount of the revenue derived from the designated portions for 1 31 each of the years the bonds remain outstanding to the payment 1 32 of the bonds. Bonds may be issued only for one or more of the 1 33 purposes set forth on the ballot proposition concerning the 1 34 imposition of the local option sales and services tax, except 1 35 bonds shall not be issued payable from that portion of tax 2 1 revenues designated for property tax relief. The bonds may be 2 2 issued in accordance with the procedures set forth in either 2 3 subsection 3 or 4. 2 4 3. The governing body of a city may authorize the issuance 2 5 of bonds which are payable form the designated portion of the 2 6 revenues of the local option sales and services tax by 2 7 following the authorization procedures of section 384.83, the 2 8 governing body of a county may authorize the issuance of bonds 2 9 which are payable from the designated portion of the revenues 2 10 of the local option sales and services tax by following the 2 11 authorization procedures of section 331.464, and the governing 2 12 body of a secondary recipient may authorize the issuance of 2 13 bonds which are payable from the designated portion of the 2 14 revenues of the local option sales and services tax by 2 15 following the authorization procedures set out for the 2 16 issuance of revenue bonds by cities in section 384.83. Bonds 2 17 may be issued for the purpose of refunding outstanding and 2 18 previously issued bonds under this subsection without 2 19 otherwise complying with the provisions of this subsection. 2 20 4. To authorize the issuance of bonds payable as provided 2 21 in this subsection, the governing body of an issuer shall 2 22 comply with all of the procedures as follows: 2 23 a. A bond issuer may institute proceedings for the 2 24 issuance of bonds by causing a notice of the proposal to issue 2 25 the bonds, including a statement of the amount and purpose of 2 26 the bonds, together with the maximum rate of interest which 2 27 the bonds are to bear, and the right to petition for an 2 28 election, to be published at least once in a newspaper of 2 29 general circulation within the political subdivision or 2 30 unincorporated area at least ten days prior to the meeting at 2 31 which it is proposed to take action for the issuance of the 2 32 bonds. 2 33 If at any time before the date fixed for taking action for 2 34 the issuance of the bonds, a petition signed by three percent 2 35 of the qualified electors of the city, secondary recipients, 3 1 or unincorporated area, as appropriate, is filed, asking that 3 2 the question of issuing the bonds be submitted to such 3 3 qualified electors, the governing body shall either by 3 4 resolution declare the proposal to issue the bonds to have 3 5 been abandoned or shall direct the county commissioner of 3 6 elections to call a special election upon the question of 3 7 issuing the bonds. The proposition of issuing bonds under 3 8 this subsection is not approved unless the vote in favor of 3 9 the proposition is equal to a majority of the vote cast. If a 3 10 petition is not filed, or if a petition is filed and the 3 11 proposition of issuing the bonds is approved at an election, 3 12 the governing body acting on behalf of the issuer may proceed 3 13 with the authorization and issuance of the bonds. Bonds may 3 14 be issued for the purpose of refunding outstanding and 3 15 previously issued bonds under this subsection without 3 16 otherwise complying with the provisions of this subsection. 3 17 b. The provisions of chapter 76 apply to the bonds payable 3 18 as provided in this subsection, except that the mandatory levy 3 19 to be assessed pursuant to section 76.2 shall be at a rate to 3 20 generate an amount which together with the receipts from the 3 21 pledged designated portion of the local option sales and 3 22 services tax is sufficient to pay the interest and principal 3 23 on the bonds. All amounts collected as a result of the levy 3 24 assessed pursuant to section 76.2 and paid out in the first 3 25 instance for bond principal and interest shall be repaid to 3 26 the bond issuer which levied the tax from the first available 3 27 designated portion of local option sales and services tax 3 28 collections received in excess of the requirement for the 3 29 payment of the principal and interest of the bonds and when 3 30 repaid shall be applied in reduction of property taxes. The 3 31 amount of bonds which may be issued under section 76.3 shall 3 32 be the amount which could be retired from the actual 3 33 collections of the designated portions of the local option 3 34 sales and services tax for the last four calendar quarters, as 3 35 certified by the director of revenue and finance. The amount 4 1 of tax revenues pledged jointly by other cities or counties 4 2 may be considered for the purpose of determining the amount of 4 3 bonds which may be used. If the local option sales and 4 4 services tax has been in effect for less than four calendar 4 5 quarters, the tax collected within the shorter period may be 4 6 adjusted to project the collections of the designated portion 4 7 for the full year for the purpose of determining the amount of 4 8 the bonds which may be issued. The provisions of this section 4 9 constitute separate authorization for the issuance of bonds 4 10 and shall prevail in the event of conflict with any other 4 11 provision of the Code limiting the amount of bonds which may 4 12 be issued or the source of payment of the bonds. Bonds issued 4 13 under this section shall not limit or restrict the authority 4 14 of the bond issuer to issue bonds under other provisions of 4 15 the Code. 4 16 5. A city or county, jointly with one or more other 4 17 political subdivisions as provided in chapter 28E, may pledge 4 18 irrevocably any amount derived form the designated portions of 4 19 the revenues of the local option sales and services tax to the 4 20 support or payment of bonds of an issuer, issued for one or 4 21 more purposes set forth on the ballot proposition concerning 4 22 the imposition of the local option sales and services tax or a 4 23 political subdivision may apply the proceeds of its bonds to 4 24 the support of any such purpose. 4 25 6. Bonds issued pursuant to this section shall not 4 26 constitute an indebtedness within the meaning of any 4 27 constitutional or statutory debt limitation or restriction, 4 28 and shall not be subject to the provisions of any other law or 4 29 charter relating to the authorization, issuance, or sale of 4 30 bonds. Bonds issued pursuant to this section are declared to 4 31 be issued for an essential public and governmental purpose. 4 32 Bonds issued pursuant to this section shall be authorized by 4 33 resolution of the governing body and may be issued in one or 4 34 more series and shall bear the date or dates, be payable on 4 35 demand or mature at the time or times, bear interest at the 5 1 rate or rates not exceeding that permitted by chapter 74A, be 5 2 in the denomination or denominations, be in the form, have the 5 3 rank or priority, be executed in the manner, be payable in the 5 4 medium of payment, at the place or places, be subject to the 5 5 terms of redemption, with or without premium, be secured in 5 6 the manner, and have the other characteristics, as may be 5 7 provided by the resolution authorizing their issuance. The 5 8 bonds may be sold at public or private sale at a price as may 5 9 be determined by the governing body. 5 10 Sec. 3. EFFECTIVE DATE. This Act, being deemed of 5 11 immediate importance, takes effect upon enactment. 5 12 EXPLANATION 5 13 The bill amends chapter 422B, the local option tax chapter, 5 14 to allow cities, counties, or other political subdivisions of 5 15 the state to issue bonds in anticipation of the collection of 5 16 the local option sales and services tax. The bill provides 5 17 powers to issue bonds payable from local option sales and 5 18 services tax comparable to current law with respect to hotel 5 19 and motel tax bonds. In order for a political subdivision 5 20 other than a city or county to issue bonds, the political 5 21 subdivision will be required to enter into a chapter 28E 5 22 agreement with a city or county to receive part of the local 5 23 sales and services tax revenues that the city or county 5 24 reserves. 5 25 The political subdivision would either issue revenue bonds 5 26 which are payable solely from the local sales and services tax 5 27 revenues received or issue regular bonds also backed by the 5 28 tax revenues but with a property tax levy also available in 5 29 case the tax revenues are in sufficient. If the political 5 30 subdivision is to issue the regular bonds with the tax levy, 5 31 provisions are provided to allow citizens to vote on the 5 32 imposition of the bonds. 5 33 The bill takes effect upon enactment. 5 34 LSB 2616SC 76 5 35 mg/sc/14
Text: SSB00352 Text: SSB00354 Text: SSB00300 - SSB00399 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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