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1 1 Section 1. NEW SECTION. 422E.1 AUTHORIZATION – RATE OF
1 2 TAX – USE OF REVENUES.
1 3 1. A local sales and services tax for school
1 4 infrastructure purposes may be imposed by a county on behalf
1 5 of school districts or by individual school districts as
1 6 provided in this chapter.
1 7 2. The maximum rate of tax shall be one percent. The tax
1 8 shall be imposed without regard to any other local sales and
1 9 services tax authorized in chapter 422B, and is repealed at
1 10 the expiration of a period of ten years of imposition or a
1 11 shorter period as provided in the ballot proposition.
1 12 3. Local sales and services tax moneys received by a
1 13 county or a school district for school infrastructure purposes
1 14 pursuant to this chapter shall be utilized solely for school
1 15 infrastructure needs. For purposes of this chapter, "school
1 16 infrastructure" means those activities for which a school
1 17 district is authorized to contract indebtedness and issue
1 18 general obligation bonds under section 296.1, except those
1 19 activities related to a teacher's or superintendent's home or
1 20 homes. These activities include the construction,
1 21 reconstruction, repair, purchasing, or remodeling of
1 22 schoolhouses, stadiums, gyms, fieldhouses, and bus garages and
1 23 the procurement of schoolhouse construction sites and the
1 24 making of site improvements. Additionally, "school
1 25 infrastructure" includes the payment or retirement of
1 26 outstanding bonds previously issued for school infrastructure
1 27 purposes as defined in this subsection, and the payment or
1 28 retirement of bonds issued under section 422E.5.
1 29 Sec. 2. NEW SECTION. 422E.2 IMPOSITION BY COUNTY.
1 30 1. A local sales and services tax shall be imposed by a
1 31 county only after an election at which a majority of those
1 32 voting on the question favors imposition. A local sales and
1 33 services tax approved by a majority vote shall apply to all
1 34 incorporated and unincorporated areas of that county.
1 35 2. a. Upon receipt by a county board of supervisors of a
2 1 petition requesting imposition of a local sales and services
2 2 tax for infrastructure purposes, signed by eligible electors
2 3 of the whole county equal in number to five percent of the
2 4 persons in the whole county who voted at the last preceding
2 5 state general election, the board shall within thirty days
2 6 direct the county commissioner of elections to submit the
2 7 question of imposition of the tax to the registered voters of
2 8 the whole county.
2 9 b. Alternatively, the question of imposition of a local
2 10 sales and services tax for school infrastructure purposes may
2 11 be proposed by motion or motions, requesting such submission,
2 12 adopted by the governing body of a school district located
2 13 within the county containing at least one-half of the
2 14 population of the county, or by the county board of
2 15 supervisors. Upon adoption of such motion, the governing body
2 16 of a school district shall notify the board of supervisors of
2 17 the adoption of the motion. The county board of supervisors
2 18 shall submit the motion to the county commissioner of
2 19 elections, who shall publish notice of the ballot proposition
2 20 concerning the imposition of the local sales and services tax.
2 21 A motion ceases to be valid at the time of the holding of the
2 22 regular election for the election of members of the governing
2 23 body which adopted the motion.
2 24 3. The county commissioner of elections shall submit the
2 25 question of imposition of a local sales and services tax for
2 26 school infrastructure purposes at a state general election or
2 27 at a special election held at any time other than the time of
2 28 a city regular election. The election shall not be held
2 29 sooner than sixty days after publication of notice of the
2 30 ballot proposition. The ballot proposition shall specify the
2 31 rate of tax, the date the tax will be imposed and repealed,
2 32 and shall contain a statement as to the specific purpose or
2 33 purposes for which the revenues shall be expended. The rate
2 34 of tax shall not be more than one percent as set by the county
2 35 board of supervisors. The state commissioner of elections
3 1 shall establish by rule the form for the ballot proposition
3 2 which form shall be uniform throughout the state.
3 3 4. a. The tax may be repealed or the rate increased, but
3 4 not above one percent, or decreased after an election at which
3 5 a majority of those voting on the question of repeal or rate
3 6 change favored the repeal or rate change. The election at
3 7 which the question of repeal or rate change is offered shall
3 8 be called and held in the same manner and under the same
3 9 conditions as provided in this section for the election on the
3 10 imposition of the tax. The election may be held at any time
3 11 but not sooner than sixty days following publication of the
3 12 ballot proposition. However, the tax shall not be repealed
3 13 before it has been in effect for one year.
3 14 b. Within ten days of the election at which a majority of
3 15 those voting on the question favors the imposition, repeal, or
3 16 change in the rate of the tax, the county board of supervisors
3 17 shall give written notice to the director of revenue and
3 18 finance of the result of the election. Election costs shall
3 19 be apportioned among school districts within the county on a
3 20 pro rata basis in proportion to the number of registered
3 21 voters in each school district and the total number of
3 22 registered voters in all of the school districts within the
3 23 county.
3 24 A local option sales and services tax shall not be repealed
3 25 or reduced in rate if obligations are outstanding which are
3 26 payable as provided in section 422E.5, unless funds sufficient
3 27 to pay the principal, interest, and premium, if any, on the
3 28 outstanding obligations at and prior to maturity have been
3 29 properly set aside and pledged for that purpose.
3 30 Sec. 3. NEW SECTION. 422E.3 IMPOSITION BY SCHOOL
3 31 DISTRICT.
3 32 1. A local sales and services tax for school
3 33 infrastructure purposes may be imposed by a school district as
3 34 an alternative to imposition of the tax under section 422E.2.
3 35 2. The board of directors of the school district may, and
4 1 upon the written request of not less than one hundred eligible
4 2 electors or thirty percent of the number of eligible electors
4 3 voting at the last regular school election, whichever is
4 4 greater, shall, direct the county commissioner of elections in
4 5 each county within which the school district is located to
4 6 submit the question of imposition of a local sales and
4 7 services tax for school infrastructure purposes in the notice
4 8 of the regular school election, or at a special election
4 9 called for that purpose. The proposition to impose the tax
4 10 shall be adopted if a majority of those voting on the
4 11 proposition at the election approves it.
4 12 3. The tax may be repealed or the rate increased, but not
4 13 above one percent, or decreased after an election at which a
4 14 majority of those voting on the question of repeal or rate
4 15 change favored the repeal or rate change. The election at
4 16 which the question of repeal or rate change is offered shall
4 17 be called and held in the same manner as provided in
4 18 subsection 2 regarding an initial vote to impose the tax. The
4 19 provisions of section 422E.2, subsection 4, shall apply
4 20 regarding notification of the director of revenue and finance,
4 21 apportionment of election costs, repeal of the tax only after
4 22 one year, and the restrictions on repeal regarding outstanding
4 23 obligations pursuant to section 422E.5.
4 24 4. If each school district involved in a school
4 25 reorganization under chapter 275 has imposed a local sales and
4 26 services tax for school infrastructure purposes, and if the
4 27 voters have not voted upon imposition of the tax in the
4 28 reorganized district, the existing local sales and services
4 29 tax for school infrastructure purposes shall be in effect for
4 30 the reorganized district for the least amount and the shortest
4 31 time for which it is in effect in any of the districts prior
4 32 to reorganization.
4 33 Sec. 4. NEW SECTION. 422E.4 COLLECTION OF TAX.
4 34 1. If a majority of those voting on the question of
4 35 imposition of a local sales and services tax for school
5 1 infrastructure purposes favors imposition of the tax, the tax
5 2 shall be imposed by the county board of supervisors within the
5 3 county pursuant to section 422E.2, or by the school board
5 4 within a school district pursuant to section 422E.3, as
5 5 applicable, at the rate specified for a ten-year duration on
5 6 the gross receipts taxed by the state under chapter 422,
5 7 division IV.
5 8 2. If a sales and services tax for school infrastructure
5 9 purposes is imposed by a county, and an area within the county
5 10 is already subject to a sales and services tax for school
5 11 infrastructure purposes imposed by a school district pursuant
5 12 to section 422E.3, the county-imposed tax shall take
5 13 precedence and apply throughout the county. In this event,
5 14 the previously imposed tax by a school district shall be
5 15 repealed for all school districts within the county having
5 16 imposed the tax, effective on the date that the county-imposed
5 17 tax takes effect. Alternatively, if a sales and services tax
5 18 for school infrastructure purposes is imposed by a school
5 19 district, and a portion of the school district is already
5 20 subject to a sales and services tax for school infrastructure
5 21 purposes imposed by a county pursuant to section 422E.2, the
5 22 tax shall not be imposed by the school district within the
5 23 area already subject to the preexisting county-imposed tax
5 24 until the county-imposed tax is repealed.
5 25 3. The tax shall be imposed on the same basis as the state
5 26 sales and services tax and shall not be imposed on the sale of
5 27 any property or on any service not taxed by the state, except
5 28 the tax shall not be imposed on the gross receipts from the
5 29 sale of motor fuel or special fuel as defined in chapter 452A,
5 30 on the gross receipts from the rental of rooms, apartments, or
5 31 sleeping quarters which are taxed under chapter 422A during
5 32 the period the hotel and motel tax is imposed, on the gross
5 33 receipts from the sale of equipment by the state department of
5 34 transportation, and on the gross receipts from the sale of a
5 35 lottery ticket or share in a lottery game conducted pursuant
6 1 to chapter 99E.
6 2 4. The tax is applicable to transactions within the county
6 3 or the school district where it is imposed and shall be
6 4 collected by all persons required to collect state gross
6 5 receipts taxes. The amount of the sale, for purposes of
6 6 determining the amount of the tax, does not include the amount
6 7 of any state gross receipts taxes or other local option sales
6 8 taxes. A tax permit other than the state tax permit required
6 9 under section 422.53 shall not be required by local
6 10 authorities.
6 11 5. The director of revenue and finance shall credit tax
6 12 receipts and interest and penalties from the local sales and
6 13 services tax for school infrastructure purposes to an account
6 14 within the county's local sales and services tax fund, as
6 15 created in section 422B.10, subsection 1, maintained in the
6 16 name of the school district or school districts located within
6 17 the county, if the tax is imposed pursuant to section 422E.2,
6 18 or to a sales and services infrastructure tax fund established
6 19 for the school district imposing the tax pursuant to section
6 20 422E.3. If the director is unable to determine from which
6 21 county or school district any of the receipts were collected,
6 22 those receipts shall be allocated among the possible counties
6 23 or school districts based on allocation rules adopted by the
6 24 director.
6 25 6. a. The director of revenue and finance within fifteen
6 26 days of the beginning of each fiscal year shall send to each
6 27 school district where the tax is imposed an estimate of the
6 28 amount of tax moneys each school district will receive for the
6 29 year and for each month of the year. At the end of each
6 30 month, the director may revise the estimates for the year and
6 31 remaining months.
6 32 b. The director shall remit ninety-five percent of the
6 33 estimated tax receipts for the school district to the school
6 34 district on or before August 31 of the fiscal year and on or
6 35 before the last day of each following month.
7 1 c. The director shall remit a final payment of the
7 2 remainder of tax moneys due for the fiscal year before
7 3 November 10 of the next fiscal year. If an overpayment has
7 4 resulted during the previous fiscal year, the first payment of
7 5 the new fiscal year shall be adjusted to reflect any
7 6 overpayment.
7 7 d. In the case of a tax imposed by a county pursuant to
7 8 section 422E.2, if more than one school district, or a portion
7 9 of a school district, is located within the county, tax
7 10 receipts shall be remitted to each school district or portion
7 11 of a school district in which the county tax is imposed in a
7 12 pro rata share based upon the ratio which the actual
7 13 enrollment of public school pupils enrolled in each school
7 14 district, determined pursuant to section 257.6 for the prior
7 15 fiscal year, bears to the combined actual enrollments of all
7 16 school districts located within the county in which the county
7 17 tax is imposed. The combined actual enrollment for a county,
7 18 for purposes of this section, shall be determined for each
7 19 county imposing a sales and services tax for school
7 20 infrastructure purposes by the department of management based
7 21 on the actual enrollment figures reported by October 1 to the
7 22 department of management by the department of education
7 23 pursuant to section 257.6, subsection 1. The combined actual
7 24 enrollment count shall be forwarded to the director of the
7 25 department of management by March 1, annually, for purposes of
7 26 supplying estimated tax payment figures and making estimated
7 27 tax payments pursuant to this section for the following fiscal
7 28 year.
7 29 7. The local sales and services tax for school
7 30 infrastructure purposes shall be administered as provided in
7 31 section 422B.9.
7 32 Sec. 5. NEW SECTION. 422E.5 BONDING.
7 33 The board of directors of a school district shall be
7 34 authorized to issue negotiable, interest-bearing school bonds,
7 35 without election, and utilize tax receipts derived from the
8 1 sales and services tax for school infrastructure purposes for
8 2 principal and interest repayment. Proceeds of the bonds
8 3 issued pursuant to this section shall be utilized solely for
8 4 school infrastructure needs as school infrastructure is
8 5 defined in section 422E.1, subsection 3. Issuance of bonds
8 6 pursuant to this section shall be permitted only in a district
8 7 which has imposed a local sales and services tax for school
8 8 infrastructure purposes pursuant to section 422E.2 or 422E.3.
8 9 The provisions of sections 298.22 through 298.24 shall apply
8 10 regarding the form, rate of interest, registration,
8 11 redemption, and recording of bond issues pursuant to this
8 12 section, with the exception that the maximum period during
8 13 which principal on the bonds is payable shall not exceed a
8 14 ten-year period, or the date of repeal stated on the ballot
8 15 proposition.
8 16 Sec. 6. EFFECTIVE DATE. This Act, being deemed of
8 17 immediate importance, takes effect upon enactment.
8 18 EXPLANATION
8 19 This bill provides for the imposition of a local sales and
8 20 services tax by a county or a school district to be utilized
8 21 for school infrastructure purposes, separate and distinct from
8 22 any other local sales and services tax otherwise imposed by a
8 23 city or county pursuant to chapter 422B. The tax would be
8 24 subject to a one percent maximum rate, and be authorized for a
8 25 maximum duration of 10 years. If imposed by a county, the tax
8 26 would be imposed countywide. Imposition of the tax could be
8 27 requested by a petition signed by 5 percent of the eligible
8 28 electors of the whole county who voted at the last preceding
8 29 state general election, or by a motion received by the county
8 30 commissioner of elections adopted by the governing body of the
8 31 county or of a school district located within the county
8 32 containing at least one-half of the population of the county.
8 33 The tax would be imposed if approved by a majority vote of
8 34 those persons voting on the question within the county at a
8 35 state general election or a special election called for
9 1 imposition of the tax. If imposed by a school district,
9 2 imposition of the tax can be requested by the school district
9 3 board of directors by motion, or upon receipt of the written
9 4 request of not less than 100 eligible electors or 30 percent
9 5 of the number of eligible electors voting at the last regular
9 6 school election, whichever is greater. The tax would be
9 7 imposed if approved by a majority vote of those persons voting
9 8 at a regular school election, or at a special election. The
9 9 bill provides for the crediting of tax receipts from a county-
9 10 imposed tax to an account within the county's local sales and
9 11 services tax fund, as created in section 422B.10, subsection
9 12 1, and from a tax imposed by a school district to a sales and
9 13 services infrastructure tax fund established for the school
9 14 district, and specifies procedures for remittance of receipts
9 15 by the director of revenue and finance to a school district.
9 16 The bill authorizes the issuance of bonds payable from the
9 17 local sales and services tax receipts. The bill defines
9 18 "school infrastructure" as those activities for which a school
9 19 district is authorized to contract indebtedness and to issue
9 20 general obligation bonds under section 296.1, except
9 21 activities related to a teacher's or superintendent's home or
9 22 homes. These activities include the construction,
9 23 reconstruction, repair, purchasing, or remodeling of
9 24 schoolhouses, stadiums, gyms, fieldhouses, and bus garages and
9 25 schoolhouse site procurement and the making of site
9 26 improvements. Additionally, "school infrastructure" includes
9 27 the payment or retirement of outstanding bonds previously
9 28 issued for school infrastructure purposes, and the maintenance
9 29 of schoolhouses and school district property.
9 30 The bill takes effect upon enactment.
9 31 LSB 3112SS 77
9 32 rn/sc/14.5
Text: SF02088 Text: SF02090 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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