Text: HF00565                           Text: HF00567
Text: HF00500 - HF00599                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 566

Partial Bill History

• Bill Introduced: H.J. 562
• Complete Bill History

Bill Text

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  4    Hereafter issues Issues of bonds of every kind and
  1  5 character by 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 approximately such that 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 the interest and principal
  1 25 and interest of the bonds within a period named not exceeding
  1 26 twenty years that 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    If the a 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, are found to be insufficient 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 18    Whenever If the governing authority of such a political
  3 19 subdivision shall have has on hand funds derived from any
  3 20 other a source other than taxation which may be appropriated
  3 21 to the payment either of interest or principal or interest, or
  3 22 both principal and interest of such bonds, such the 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 30 or times extend or renew any legal indebtedness or any part
  3 31 thereof of the indebtedness they may have represented by bonds
  3 32 or certificates where such the 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 the same legal indebtedness
  4  1 and issue bonds therefor running 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 interest thereof from the
  4  4 proceeds of an annual property tax, or annual property tax and
  4  5 income surtax, for the period covered by such the bonds
  4  6 similar to the tax authorized by law or by the electors for
  4  7 the payment of the indebtedness so extended 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 are hereby authorized 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 of said the
  6 10 bonds shall be levied or imposed in accordance with chapter
  6 11 76, and said the bonds shall mature within a period not
  6 12 exceeding twenty years from date of issue the 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 of such the 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 within said the 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 estimated and certified to apply on to 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 estimated and certified to apply on to 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 the qualified registered
  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 11 such the election the ballot used for the submission of said
  7 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.  Such The proposition shall not be
  7 17 deemed carried or adopted unless the vote in favor of such the
  7 18 proposition is equal to at least sixty percent of the total
  7 19 vote cast for and against said the proposition at said the
  7 20 election.  Whenever If 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 of such the school
  7 23 corporation shall be required as a result of any subsequent
  7 24 change in the boundaries of such the school corporation.
  7 25    Sec. 10.  Section 298.22, unnumbered paragraph 1, Code
  7 26 1997, is amended to read as follows:
  7 27    All of said The 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 board providing therefor;
  7 30 shall run not more than twenty years mature 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
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