Text: HF00565 Text: HF00567 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 76.1, Code 1997, is amended to read as 1 2 follows: 1 3 76.1 MANDATORY RETIREMENT. 1 4Hereafter issuesIssues of bondsof every kind and1 5characterby counties, cities, and school corporations shall 1 6 be consecutively numbered. The annual levy of property tax, 1 7 or combination of property tax levy and income surtax imposed 1 8 as provided in section 76.19, shall be sufficient to pay the 1 9 interest and approximatelysuchthat portion of the principal 1 10 of the bonds as will retire them in a period not exceeding 1 11 twenty years from date of issue, or twenty-two years in the 1 12 case of a school district imposing an income surtax as 1 13 provided in section 76.19. Each issue of bonds shall be 1 14 scheduled to mature serially in the same order as numbered. 1 15 Sec. 2. Section 76.2, Code 1997, is amended to read as 1 16 follows: 1 17 76.2 MANDATORY LEVY – OBLIGATIONS IN ANTICIPATION OF 1 18 LEVY. 1 19 The governing authority of these political subdivisions 1 20 before issuing bonds shall, by resolution, provide for the 1 21 assessment of an annual levy upon all the taxable property in 1 22 the political subdivision, or the assessment of an annual 1 23 property tax levy and imposition of an income surtax under 1 24 section 76.19, sufficient to pay theinterest andprincipal 1 25 and interest of the bonds within a period named not exceeding 1 26twenty yearsthat provided in section 76.1. A certified copy 1 27 of this resolution shall be filed with the county auditor or 1 28 the auditors of the counties in which the political 1 29 subdivision is located; and the filing shall make it a duty of 1 30 the auditors to enter annually this levy for collection from 1 31 the taxable property within the boundaries of the political 1 32 subdivision until funds are realized to pay the bonds in full. 1 33 The property tax levy shall continue to be made against 1 34 property that is severed from the political subdivision after 1 35 the filing of the resolution until funds are realized to pay 2 1 the bonds in full and an income surtax shall continue to be 2 2 imposed upon the residents of any area severed from a school 2 3 district. 2 4 Ifthea resolution which does not include imposition of an 2 5 income surtax is filed prior to April 1, or May 1,if the 2 6 political subdivision is a school district, the annual levy 2 7 shall begin with the tax levy for collection commencing July 1 2 8 of that year. If the resolution is filed after April 1, or 2 9 May 1,in the case of a school district, or if the resolution 2 10 includes imposition of an income surtax, the annual property 2 11 tax levy shall begin with the tax levy for collection in the 2 12 next succeeding fiscal year. If the resolution includes the 2 13 imposition of a local income surtax and it is filed with the 2 14 department of revenue and finance prior to August 1, the 2 15 imposition of the surtax is retroactive to January 1 of that 2 16 calendar year. If the resolution is filed with the department 2 17 of revenue and finance on or after August 1, the imposition of 2 18 the income surtax begins on January 1 of the next calendar 2 19 year. However, the governing authority of a political 2 20 subdivision may adjust a levy of taxes made under this section 2 21 for the purpose of adjusting the annual levies and collections 2 22 and income surtax rate for property severed from the political 2 23 subdivision, subject to the approval of the director of the 2 24 department of management. 2 25 If funds, including reserves and amounts available for 2 26 temporary transfer, arefound to beinsufficient to pay in 2 27 full any installment of principal or interest, a public issuer 2 28 of bonds may anticipate the next levy of property taxes 2 29 pursuant to this section or the imposition of an income surtax 2 30 under section 76.19 in the manner provided in chapter 74, 2 31 whether the taxes so anticipated are to be collected in the 2 32 same or a future fiscal year. 2 33 To further secure the payment of bonds partially funded by 2 34 an income surtax as provided in section 76.19, the board of 2 35 directors of a school district shall, by resolution, provide 3 1 for the assessment of an annual levy of a standby tax upon all 3 2 taxable property within the school district. A copy of the 3 3 resolution shall be sent to the county auditor of each county 3 4 in which the school district is located. The revenues from 3 5 the standby tax shall be deposited in a special fund and shall 3 6 be expended only for the payment of principal and interest on 3 7 the bonds issued as provided in this section, when the revenue 3 8 from an income surtax as provided in section 76.19 is 3 9 insufficient. Reserve moneys shall not be built up in this 3 10 fund in anticipation of a projected default. The board of 3 11 directors shall adjust the annual standby property tax levy 3 12 for each year to reflect the amount of revenues in the special 3 13 fund and the amount of principal and interest which is due in 3 14 that year. 3 15 Sec. 3. Section 76.4, Code 1997, is amended to read as 3 16 follows: 3 17 76.4 PERMISSIVE APPLICATION OF FUNDS. 3 18WheneverIf the governing authority ofsucha political 3 19 subdivisionshall havehas on hand funds derived fromany3 20othera source other than taxation which may be appropriated 3 21 to the payment either ofinterest orprincipal or interest, or 3 22 both principal and interest of such bonds,suchthe funds may 3 23 be so appropriated and used and the property tax levy and 3 24 income surtax, if imposed, for the payment of the bonds 3 25 correspondingly reduced. 3 26 Sec. 4. Section 76.7, Code 1997, is amended to read as 3 27 follows: 3 28 76.7 PARTICULAR BONDS AFFECTED – PAYMENT. 3 29 Counties, cities, and school corporations may at any time 3 30or timesextend or renew any legal indebtedness or any part 3 31thereofof the indebtedness theymayhave represented by bonds 3 32 or certificates wheresuchthe indebtedness is payable from a 3 33 limited annual property tax or from a voted annual property 3 34 tax, or from an income surtax imposed under section 76.19, and 3 35 may by resolution fund or refund thesamelegal indebtedness 4 1 and issue bondsthereforrunning not more than twenty years to 4 2 be known as funding or refunding bonds, and make provision for 4 3 the payment of the principal and interestthereoffrom the 4 4 proceeds of an annual property tax, or annual property tax and 4 5 income surtax, for the period covered bysuchthe bonds 4 6 similar to the tax authorized by law or by the electors for 4 7 the payment of the indebtednesssoextended or renewed. 4 8 Sec. 5. NEW SECTION. 76.19 INCOME SURTAX. 4 9 1. An income surtax may be imposed by a school district as 4 10 provided in this section, but only if authorized by the 4 11 electors as provided in section 75.1. 4 12 2. The income surtax shall be imposed upon state income 4 13 taxes computed under section 422.5, less credits allowed in 4 14 sections 422.11A, 422.11B, 422.12, and 422.12B, and shall be 4 15 imposed upon the state income tax for each calendar year, or 4 16 for a taxpayer's fiscal year ending during the second half of 4 17 that calendar year or the first half of the succeeding 4 18 calendar year, and shall be imposed on all taxpayers residing 4 19 within the boundaries of the school district on the last day 4 20 of the applicable tax year. 4 21 3. The income surtax shall be imposed to collect an amount 4 22 that is equivalent to sixty percent of the sum of the prin- 4 23 cipal and interest of the bonds over the life of the bonds. 4 24 The rate of the income surtax may be adjusted in any year for 4 25 the sole purpose of ensuring that an amount equivalent to 4 26 sixty percent of the principal and interest over the life of 4 27 the bonds is collected. An income surtax imposed pursuant to 4 28 this section shall not exceed twenty percent of a taxpayer's 4 29 state income tax liability for the tax year. 4 30 4. At the time of the annual levy under section 76.2, the 4 31 governing authority of the school district shall also provide 4 32 in the resolution for the imposition of the income surtax and 4 33 shall certify to the department of management such sum 4 34 expressed in dollars. The department shall determine the rate 4 35 of income surtax to be imposed based upon the most recent 5 1 available figures from state income taxes paid by taxpayers 5 2 residing in the school district. The department shall 5 3 continue to make such calculations and certify the income 5 4 surtax rate to the county auditor or the auditors of the 5 5 counties in which the school district is located with 5 6 adjustments as provided in this section until the principal 5 7 and interest on the bonds are paid in full. On or before 5 8 November 1 of each year in which the income surtax is 5 9 collected the director of revenue and finance shall deposit 5 10 with the treasurer of the school district the entire amount of 5 11 income surtax collected from taxpayers residing in the school 5 12 district. 5 13 5. The costs of administration shall be determined by the 5 14 department of revenue and finance, and shall be based on a 5 15 share of the total cost of administering the department, in 5 16 the same proportion as the amount of income surtax collected 5 17 is to the amount of state income taxes collected. 5 18 6. The director of revenue and finance shall administer 5 19 the income surtax imposed under this chapter and sections 5 20 422.4, 422.20 to 422.31, 422.68, and 422.72 to 422.75 shall 5 21 apply with respect to administration of the income surtax. 5 22 Sec. 6. NEW SECTION. 76.20 INCOME TAX RETURNS. 5 23 An income surtax imposed under section 76.19 shall be made 5 24 a part of the Iowa individual income tax return subject to the 5 25 conditions and restrictions set forth in section 422.21. 5 26 Sec. 7. NEW SECTION. 76.21 DESIGNATION OF TAX. 5 27 An income surtax imposed under section 76.19 by a school 5 28 district shall be designated as a school debt service income 5 29 surtax. 5 30 Sec. 8. Section 296.1, Code 1997, is amended to read as 5 31 follows: 5 32 296.1 INDEBTEDNESS AUTHORIZED. 5 33 Subject to the approval of the voters thereof, school 5 34 districts areherebyauthorized to contract indebtedness and 5 35 to issue general obligation bonds to provide funds to defray 6 1 the cost of purchasing, building, furnishing, reconstructing, 6 2 repairing, improving or remodeling a schoolhouse or 6 3 schoolhouses and additions thereto, gymnasium, stadium, field 6 4 house, school bus garage, teachers' or superintendent's home 6 5 or homes, and procuring a site or sites therefor, or 6 6 purchasing land to add to a site already owned, or procuring 6 7 and improving a site for an athletic field, or improving a 6 8 site already owned for an athletic field, and for any one or 6 9 more of such purposes. Taxes for the payment ofsaidthe 6 10 bonds shall be levied or imposed in accordance with chapter 6 11 76, andsaidthe bonds shall mature withina period not6 12exceeding twenty years from date of issuethe period provided 6 13 in section 76.1, shall bear interest at a rate or rates not 6 14 exceeding that permitted by chapter 74A and shall be of such 6 15 form as the board of directors ofsuchthe school district 6 16 shall by resolution provide, but the aggregate indebtedness of 6 17 any school district shall not exceed five percent of the 6 18 actual value of the taxable property withinsaidthe school 6 19 district, as ascertained by the last preceding state and 6 20 county tax lists. 6 21 Sec. 9. Section 298.18, unnumbered paragraphs 2, 4, and 6, 6 22 Code 1997, are amended to read as follows: 6 23 The amount estimatedand certified to apply onto pay 6 24 principal and interest for any one year shall not exceed an 6 25 amount that could be raised by a property tax levy equal to 6 26 two dollars and seventy cents per thousand dollars of the 6 27 assessed valuation of the taxable property of the school 6 28 corporation except as hereinafter provided. 6 29 The amount estimatedand certified to apply onto pay 6 30 principal and interest for any one year may exceed an amount 6 31 that could be raised by a property tax levy equal to two 6 32 dollars and seventy cents per thousand dollars of assessed 6 33 value by the amount approved by the voters of the school 6 34 corporation, but not exceeding four dollars and five cents per 6 35 thousand of the assessed value of the taxable property within 7 1 any school corporation, provided that thequalifiedregistered 7 2 voters of such school corporation have first approved such 7 3 increased amount at a special election, which may be held at 7 4 the same time as the regular school election. The proposition 7 5 submitted to the voters at such special election shall be in 7 6 substantially the following form: 7 7 Notice of the election shall be given by the county 7 8 commissioner of elections according to section 49.53. The 7 9 election shall be held on a date not less than four nor more 7 10 than twenty days after the last publication of the notice. At 7 11suchthe election the ballot used for the submission ofsaid7 12 the proposition shall be in substantially the form for 7 13 submitting special questions at general elections. The county 7 14 commissioner of elections shall conduct the election pursuant 7 15 to the provisions of chapters 39 to 53 and certify the results 7 16 to the board of directors.SuchThe proposition shall not be 7 17 deemedcarried oradopted unless the vote in favor ofsuchthe 7 18 proposition is equal to at least sixty percent of the total 7 19 vote cast for and againstsaidthe proposition atsaidthe 7 20 election.WheneverIf such a proposition has been approved by 7 21 the voters of a school corporation as hereinbefore provided, 7 22 no further approval of the voters ofsuchthe school 7 23 corporation shall be required as a result of any subsequent 7 24 change in the boundaries ofsuchthe school corporation. 7 25 Sec. 10. Section 298.22, unnumbered paragraph 1, Code 7 26 1997, is amended to read as follows: 7 27All of saidThe bonds shall be substantially in the form 7 28 provided for county bonds, but subject to changes that will 7 29 conform them to the action of the boardproviding therefor;7 30 shallrun not more than twenty yearsmature within the period 7 31 provided in section 76.1, and may be sooner paid if so 7 32 nominated in the bond; bear a rate of interest not exceeding 7 33 that permitted by chapter 74A, payable semiannually; be signed 7 34 by the president and countersigned by the secretary of the 7 35 board of directors; and shall not be disposed of for less than 8 1 par value, nor issued for other purposes than this chapter 8 2 provides. 8 3 Sec. 11. Section 298A.2, Code 1997, is amended to read as 8 4 follows: 8 5 298A.2 GENERAL FUND. 8 6 All moneys received by a school corporation from taxes and 8 7 other sources must be accounted for in the general fund, 8 8 except moneys required by law to be accounted for in another 8 9 fund. A portion of the balance remaining in the general fund 8 10 at the end of a fiscal year may be transferred, by resolution 8 11 of the board of directors, to the debt service fund or to a 8 12 capital project fund to pay the principal and interest on 8 13 bonds issued by the school district, but only if such bonds 8 14 were issued after receiving voter approval. 8 15 Sec. 12. APPLICABILITY DATE. This Act applies to bond 8 16 issuance elections held on or after the effective date of this 8 17 Act. 8 18 EXPLANATION 8 19 This bill authorizes a school district to impose an income 8 20 surtax for principal and interest on bonds issued by the 8 21 school district. The income surtax imposed shall not exceed 8 22 20 percent of a taxpayer's state income tax liability for a 8 23 tax year. The bill also provides that the income surtax 8 24 collected shall be an amount equivalent to 60 percent of the 8 25 principal and interest paid on the bonds over the life of the 8 26 bonds. 8 27 The bill also authorizes the board of directors of a school 8 28 district to, by resolution, transfer a portion of the ending 8 29 balance in the school district's general fund to pay principal 8 30 and interest on bonds issued by the school district. 8 31 The bill changes from 20 years to 22 years the maximum 8 32 length of time that bonds can be outstanding. 8 33 The bill applies to bond issuance elections held on or 8 34 after July 1, 1997. 8 35 LSB 2366HH 77 9 1 sc/jj/8
Text: HF00565 Text: HF00567 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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