Text: HSB00513 Text: HSB00515 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.7, Code Supplement 1997, is amended 1 2 by adding the following new subsection: 1 3 NEW SUBSECTION. 35. Subtract, to the extent included, 1 4 interest earned on general obligation bonds or notes issued as 1 5 authorized in section 296.1 by a school district located in 1 6 the state for infrastructure purposes. 1 7 Sec. 2. Section 422.35, Code Supplement 1997, is amended 1 8 by adding the following new subsection: 1 9 NEW SUBSECTION. 9. Subtract, to the extent included, 1 10 interest earned on general obligation bonds or notes issued as 1 11 authorized in section 296.1 by a school district located in 1 12 the state for infrastructure purposes. 1 13 Sec. 3. Section 422B.1, subsections 1 and 3, Code 1997, 1 14 are amended to read as follows: 1 15 1. A county may impose by ordinance of the board of 1 16 supervisors local option taxes authorized by this chapter, 1 17 subject to this section and subject to the exception provided 1 18 in subsection 2. For purposes of this chapter, "incorporated 1 19 area" means the area within the boundaries of a city unless 1 20 the context otherwise requires. 1 21 3. A local option tax shall be imposed only after an 1 22 election at which a majority of those voting on the question 1 23 favors imposition and shall then be imposed until repealed as 1 24 provided in subsection 6, paragraph "a". A change in the 1 25 distribution formula of the local sales and services tax 1 26 receipts shall occur only after an election at which a 1 27 majority of those voting on the question favors the change. 1 28 If the tax is a local vehicle tax imposed by a county, it 1 29 shall apply to all incorporated and unincorporated areas of 1 30 the county. If the tax is a local sales and services tax 1 31 imposed by a county, it shall only apply to those incorporated 1 32 areas and the unincorporated area of that county in which a 1 33 majority of those voting in the area on the tax favors its 1 34 imposition or favored the change in the distribution formula. 1 35 For purposes of the local sales and services tax, all cities 2 1 contiguous to each other shall be treated as part of one 2 2 incorporated area and the tax would be imposed or the 2 3 distribution formula would be changed in each of those 2 4 contiguous cities only if the majority of those voting in the 2 5 total area covered by the contiguous cities favors its 2 6 imposition. For purposes of the local sales and services tax, 2 7 a city is not contiguous to another city if the only road 2 8 access between the two cities is through another state. 2 9 Sec. 4. Section 422B.1, subsection 4, Code 1997, is 2 10 amended by adding the following new paragraphs: 2 11 NEW PARAGRAPH. c. For a county in which a local sales and 2 12 services tax is not imposed and which will be submitting the 2 13 question of imposition of the local sales and services tax 2 14 pursuant to paragraph "b", the question shall be submitted 2 15 specifying that school districts may receive part of the 2 16 distribution of revenues upon receipt by the county 2 17 commissioner of elections of a motion or motions, requesting 2 18 the question specifying such distribution, adopted by the 2 19 school board or boards of school districts located wholly or 2 20 partially within the county representing at least one-half of 2 21 the population of the county. Upon adoption of such a motion, 2 22 a school board shall submit the motion to the county 2 23 commissioner of elections and shall notify the board of 2 24 supervisors of the adoption of the motion. The county 2 25 commissioner of elections shall keep a file on all the motions 2 26 received and, upon reaching the population requirements thirty 2 27 days prior to the election, shall publish notice of the ballot 2 28 proposition concerning the distribution of local sales and 2 29 services tax receipts to include school districts. A motion 2 30 ceases to be valid at the time of the holding of the regular 2 31 election for the election of members of the school district 2 32 which adopted the motion. The county commissioner of 2 33 elections shall eliminate from the file any motion that ceases 2 34 to be valid. If the population requirement is met thirty days 2 35 prior to the election, distribution of sales and services tax 3 1 receipts shall be as provided in section 422B.10, subsection 3 2 7. 3 3 NEW PARAGRAPH. d. For a county in which a local sales and 3 4 services tax is not imposed, the question of imposing a local 3 5 sales and services tax shall be submitted under the methods 3 6 described in either of the following: 3 7 (1) A county board of supervisors shall direct within 3 8 thirty days the county commissioner of elections to submit the 3 9 question of imposition of a local sales and services tax with 3 10 distribution of tax receipts to include school districts to 3 11 the registered voters of the incorporated and unincorporated 3 12 areas of the county upon receipt of a petition, requesting 3 13 imposition of a local sales and services tax with distribution 3 14 of tax receipts to include school districts, signed by 3 15 eligible electors of the whole county equal in number to five 3 16 percent of the persons in the whole county who voted at the 3 17 last preceding state general election. 3 18 (2) The question of the imposition of a local sales and 3 19 services tax with distribution of tax receipts to include 3 20 school districts shall be submitted to the registered voters 3 21 of the incorporated and unincorporated areas of the county 3 22 upon receipt by the county commissioner of elections of the 3 23 motion or motions, requesting such submission, adopted by the 3 24 school board or boards of school districts located wholly or 3 25 partly within the county, representing at least one-half of 3 26 the population of the county. Upon adoption of such a motion, 3 27 the school board of the school district shall submit the 3 28 motion to the county commissioner of elections and shall 3 29 notify the board of supervisors of the adoption of the motion. 3 30 The county commissioner of elections shall keep a file on all 3 31 the motions received and, upon reaching the population 3 32 requirements, shall publish notice of the ballot proposition 3 33 concerning the imposition of the local sales and services tax 3 34 with distribution of tax receipts to include school districts. 3 35 A motion ceases to be valid at the time of the holding of the 4 1 regular election for the election of members of the school 4 2 board which adopted the motion. The county commissioner of 4 3 elections shall eliminate from the file any motion that ceases 4 4 to be valid. The manner provided under this subparagraph for 4 5 the submission of the question of imposition of a local sales 4 6 and services tax with distribution of tax receipts to include 4 7 school districts is an alternative to the manner provided in 4 8 subparagraph (1). 4 9 If a local sales and services tax is imposed as a result of 4 10 an election held pursuant to a petition or motions under 4 11 subparagraph (1) or (2), respectively, the formula for the 4 12 distribution of tax receipts shall be as provided in section 4 13 422B.10, subsection 7. 4 14 NEW PARAGRAPH. e. For a county in which a local sales and 4 15 services tax is imposed, the question of changing the formula 4 16 to add school districts shall be submitted to the registered 4 17 voters under the methods described in either of the following: 4 18 (1) Receipt of a petition requesting the question of 4 19 changing the formula to include school districts to be 4 20 submitted in the manner provided in paragraph "d", 4 21 subparagraph (1). 4 22 (2) Receipt of a motion or motions requesting the question 4 23 of changing the formula to include school districts to be 4 24 submitted in the manner provided in paragraph "d", 4 25 subparagraph (2). 4 26 An election held pursuant to this lettered paragraph shall 4 27 be held countywide. Those areas where the tax is already 4 28 imposed shall vote on the question of the change in the 4 29 formula. Those areas where the tax is not imposed shall vote 4 30 on the question of the imposition of the tax with distribution 4 31 of tax receipts to include school districts. 4 32 If an election is held pursuant to a petition or motions 4 33 under subparagraph (1) or (2), respectively, which results in 4 34 the change in the formula for the distribution of local sales 4 35 and services tax receipts in those areas where the tax was 5 1 imposed to include school districts, or results in the 5 2 imposition of the tax in areas in which the tax had not been 5 3 imposed, the new formula for the distribution of tax receipts 5 4 shall be as provided in section 422B.10, subsection 8. 5 5 Sec. 5. Section 422B.1, subsections 5 and 6, Code 1997, 5 6 are amended to read as follows: 5 7 5. The county commissioner of elections shall submit the 5 8 question of imposition of a local option tax or the question 5 9 of a change in the distribution formula of local sales and 5 10 services tax receipts to include school districts at a state 5 11 general election or at a special election held at any time 5 12 other than the time of a city regular election. The election 5 13 shall not be held sooner than sixty days after publication of 5 14 notice of the ballot proposition. The ballot proposition 5 15 shall specify the type and rate of tax and in the case of a 5 16 vehicle tax the classes that will be exempt and in the case of 5 17 a local sales and services tax the date it will be imposed or 5 18 the date the distribution formula will be changed. The ballot 5 19 proposition shall also specify the approximate amount of local 5 20 option tax revenues that will be used for property tax relief 5 21 and shall contain a statement as to the specific purpose or 5 22 purposes for which the revenues shall otherwise be expended. 5 23 If the county board of supervisors decides under subsection 6 5 24 to specify a date on which the local option sales and services 5 25 tax shall automatically be repealed, the date of the repeal 5 26 shall also be specified on the ballot. The rate of the 5 27 vehicle tax shall be in increments of one dollar per vehicle 5 28 as set by the petition seeking to impose the tax. The rate of 5 29 a local sales and services tax shall not be more than one 5 30 percent as set by the governing body. The state commissioner 5 31 of elections shall establish by rule the form for the ballot 5 32 proposition which form shall be uniform throughout the state. 5 33 6. a. If a majority of those voting on the question of 5 34 imposition of a local option tax favor imposition of a local 5 35 option tax, the governing body of that county shall impose the 6 1 tax at the rate specified for an unlimited period. If a 6 2 majority of those voting on the question of a change in the 6 3 distribution formula favor such change, the distribution 6 4 formula shall include school districts beginning with the 6 5 receipts received after the date specified on the ballot. 6 6 However, in the case of a local sales and services tax, the 6 7 county shall not impose the tax or change the distribution 6 8 formula in any incorporated area or the unincorporated area if 6 9 the majority of those voting on the tax in that area did not 6 10 favor its imposition or the change, as appropriate. For 6 11 purposes of the local sales and services tax, all cities 6 12 contiguous to each other shall be treated as part of one 6 13 incorporated area and the tax shall be imposed or the change 6 14 made in each of those contiguous cities only if the majority 6 15 of those voting on the tax or change in the total area covered 6 16 by the contiguous cities favored its imposition or change. 6 17 The local option tax may be repealed or the rate increased or 6 18 decreased or the use thereof changed after an election at 6 19 which a majority of those voting on the question of repeal or 6 20 rate or use change favored the repeal or rate or use change. 6 21 The election at which the question of repeal or rate or use 6 22 change is offered shall be called and held in the same manner 6 23 and under the same conditions as provided in subsections 4 and 6 24 5 for the election on the imposition of the local option tax. 6 25 However, in the case of a local sales and services tax where 6 26 the tax has not been imposed countywide, the question of 6 27 repeal or imposition or rate or use change shall be voted on 6 28 only by the registered voters of the areas of the county where 6 29 the tax has been imposed or has not been imposed, as 6 30 appropriate. However, the governing body of the incorporated 6 31 area or unincorporated area where the local sales and services 6 32 tax is imposed may, upon its own motion, request the county 6 33 commissioner of elections to hold an election in the 6 34 incorporated or unincorporated area, as appropriate, on the 6 35 question of the change in use of local sales and services tax 7 1 revenues. The election may be held at any time but not sooner 7 2 than sixty days following publication of the ballot 7 3 proposition. If a majority of those voting in the 7 4 incorporated or unincorporated area on the change in use favor 7 5 the change, the governing body of that area shall change the 7 6 use to which the revenues shall be used. The ballot 7 7 proposition shall list the present use of the revenues, the 7 8 proposed use, and the date after which revenues received will 7 9 be used for the new use. 7 10 When submitting the question of the imposition of a local 7 11 sales and services tax, the county board of supervisors may 7 12 direct that the question contain a provision for the repeal, 7 13 without election, of the local sales and services tax on a 7 14 specific date, which date shall be the end of a calendar 7 15 quarter. 7 16 b. Within ten days of the election at which a majority of 7 17 those voting on the question favors the imposition, repeal, 7 18 change in the distribution formula to include school 7 19 districts, or change in the rate of a local option tax, the 7 20 governing body shall give written notice to the director of 7 21 revenue and finance or, in the case of a local vehicle tax, to 7 22 the director of the department of transportation, of the 7 23 result of the election. 7 24 Sec. 6. Section 422B.10, subsection 2, Code Supplement 7 25 1997, is amended by adding the following new paragraph: 7 26 NEW PARAGRAPH. d. Each city or county that specifies that 7 27 a portion of receipts from the local option tax is to be 7 28 distributed to school districts shall make the distribution to 7 29 the school districts pursuant to subsection 7 or 8, as 7 30 applicable, from the distribution received by the city or 7 31 county from the director of revenue and finance. 7 32 Sec. 7. Section 422B.10, subsection 3, unnumbered 7 33 paragraph 1, Code Supplement 1997, is amended to read as 7 34 follows: 7 35Seventy-five percent ofOf the amount in each county's 8 1 account that is to be distributed to the cities and county, 8 2 seventy-five percent shall be remitted on the basis of the 8 3 county's population residing in the unincorporated area where 8 4 the tax was imposed and those incorporated areas where the tax 8 5 was imposed as follows: 8 6 Sec. 8. Section 422B.10, subsection 4, unnumbered 8 7 paragraph 1, Code Supplement 1997, is amended to read as 8 8 follows: 8 9Twenty-five percent ofOf the amount in each county's 8 10 account that is to be distributed to the cities and county, 8 11 twenty-five percent shall be remitted based on the sum of 8 12 property tax dollars levied by the board of supervisors if the 8 13 tax was imposed in the unincorporated areas and each city in 8 14 the county where the tax was imposed during the three-year 8 15 period beginning July 1, 1982, and ending June 30, 1985, as 8 16 follows: 8 17 Sec. 9. Section 422B.10, subsection 6, Code Supplement 8 18 1997, is amended to read as follows: 8 19 6. a. Local sales and services tax moneys received by a 8 20 city or county may be expended for any lawful purpose of the 8 21 city or county. 8 22 b. Local sales and services tax moneys received by a 8 23 school district shall only be used for school infrastructure. 8 24 "School infrastructure" means those activities for which a 8 25 school district is authorized to contract indebtedness and to 8 26 issue general obligation bonds under section 296.1, except 8 27 those activities related to teachers' or superintendent's home 8 28 or homes. 8 29 Sec. 10. Section 422B.10, Code Supplement 1997, is amended 8 30 by adding the following new subsections: 8 31 NEW SUBSECTION. 7. If a local sales and services tax is 8 32 imposed as a result of an election held pursuant to section 8 33 422B.1, subsection 4, paragraph "c" or "d", the distribution 8 34 of the local sales and services tax receipts is as follows: 8 35 a. Fifty percent of the county's account shall be 9 1 distributed to the cities and counties where the tax is 9 2 imposed as provided in subsections 2, 3, and 4. 9 3 b. Fifty percent of the county's account is distributed to 9 4 the school districts where the tax is imposed with each 9 5 district receiving a pro rata share based upon the percentage 9 6 of the population in the area of the school district where the 9 7 tax is imposed to the total population of the areas of the 9 8 school district or districts where the tax is imposed. 9 9 NEW SUBSECTION. 8. If the distribution formula for local 9 10 sales and services tax receipts is changed or a local sales 9 11 and services tax is imposed as a result of an election held 9 12 pursuant to section 422B.1, subsection 4, paragraph "e", the 9 13 distribution of the local sales and services tax receipts is 9 14 as follows: 9 15 a. Seventy-five percent of the county's account shall be 9 16 distributed to the cities and counties where the tax is 9 17 imposed as provided in subsections 2, 3, and 4. 9 18 b. Twenty-five percent of the county's account is 9 19 distributed to the school districts where the tax is imposed 9 20 with each district receiving a pro rata share based upon the 9 21 percentage of the population in the area of the school 9 22 district where the tax is imposed to the total population of 9 23 the areas of the school district or districts where the tax is 9 24 imposed. 9 25 Incorporated and unincorporated areas of the county in 9 26 which the distribution formula of local sales and services tax 9 27 is as provided in this subsection shall within ten years hold 9 28 another election for the purpose of changing the distribution 9 29 formula to that provided in subsection 7. 9 30 EXPLANATION 9 31 This bill provides that interest from general obligation 9 32 bonds or notes issued by a school district located in Iowa to 9 33 be used for infrastructure projects such as the construction, 9 34 reconstruction, repair, purchasing, or remodeling of 9 35 schoolhouses, stadiums, gyms, field houses, or bus garages are 10 1 exempt from state individual and corporate income taxes. 10 2 The bill also provides methods for school districts to 10 3 receive a portion of local option sales and services tax 10 4 receipts and provides a distribution formula to include school 10 5 districts. The methods to include school districts in the 10 6 distribution formula are similar to what is presently 10 7 available for cities and counties. This is by petition signed 10 8 by 5 percent of the number voting at the last preceding state 10 9 general election or by motions adopted by the governing boards 10 10 of the school districts with populations of at least 50 10 11 percent of the county. If the county has not imposed a local 10 12 sales or services tax, then the petition or motions involving 10 13 school districts are a request for the imposition of the tax 10 14 where the cities or unincorporated area in which the tax is 10 15 imposed would receive 50 percent of the revenues and the 10 16 school districts in which the city or unincorporated area is 10 17 located receives 50 percent. If there already exists a tax, 10 18 the petition or motion is a request that the distribution 10 19 formula in the cities and unincorporated area in which the tax 10 20 is imposed is changed to 75 percent for the cities and 10 21 unincorporated area and 25 percent for the school districts. 10 22 The same percentage distribution formula applies to those 10 23 areas that did not have a tax but voted to have one imposed at 10 24 the election. Within 10 years, another election would be held 10 25 for purposes of changing the distribution formulas to 50-50 10 26 percent. The actual distributions to the school districts 10 27 will be made by the cities and counties from moneys received 10 28 from the department of revenue and finance. 10 29 The moneys received by school districts may only be used 10 30 for infrastructure purposes. These are the same types of 10 31 projects for which the interest on bonds or notes issued for 10 32 those projects is exempt from the individual and corporate 10 33 income taxes as provided in the bill. 10 34 LSB 3387XL 77 10 35 rn/sc/14
Text: HSB00513 Text: HSB00515 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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