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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 school infrastructure tax for school
1 4 infrastructure purposes may be imposed by a county on behalf
1 5 of school districts as provided in this chapter. A local
1 6 school infrastructure tax may be a local sales and services
1 7 tax, a local income surtax, or a county property tax or a
1 8 combination of these taxes.
1 9 2. a. The maximum rate of a local sales and services tax
1 10 shall be one percent. The tax shall be imposed without regard
1 11 to any other local sales and services tax authorized in
1 12 chapter 422B.
1 13 b. The rate of a local income surtax is the rate specified
1 14 on the ballot proposition.
1 15 c. The rate of a county property tax is the rate specified
1 16 on the ballot proposition.
1 17 d. Any local school infrastructure tax imposed is repealed
1 18 at the expiration of a period of ten years of imposition or a
1 19 shorter period as provided in the ballot proposition.
1 20 3. Local school infrastructure tax moneys received by a
1 21 county for school infrastructure purposes pursuant to this
1 22 chapter shall be utilized solely for school infrastructure
1 23 needs. For purposes of this chapter, "school infrastructure"
1 24 means those activities for which a school district is
1 25 authorized to contract indebtedness and issue general
1 26 obligation bonds under section 296.1, except those activities
1 27 related to a teacher's or superintendent's home or homes.
1 28 These activities include the construction, reconstruction,
1 29 repair, purchasing, or remodeling of schoolhouses, stadiums,
1 30 gyms, fieldhouses, and bus garages and the procurement of
1 31 schoolhouse construction sites and the making of site
1 32 improvements. Additionally, "school infrastructure" includes
1 33 the payment or retirement of outstanding bonds previously
1 34 issued for school infrastructure purposes as defined in this
1 35 subsection, and the payment or retirement of bonds issued
2 1 under section 422E.7.
2 2 Sec. 2. NEW SECTION. 422E.2 IMPOSITION BY COUNTY.
2 3 1. A local school infrastructure tax or combination of
2 4 local school infrastructure taxes shall be imposed by a county
2 5 only after an election at which at least sixty percent of
2 6 those voting on the question favors imposition. A local
2 7 school infrastructure tax or combination of taxes approved by
2 8 at least a sixty percent vote shall apply to all incorporated
2 9 and unincorporated areas of that county.
2 10 2. a. Upon receipt by a county board of supervisors of a
2 11 petition requesting imposition of any local school
2 12 infrastructure tax for infrastructure purposes, signed by
2 13 eligible electors of the whole county equal in number to five
2 14 percent of the persons in the whole county who voted at the
2 15 last preceding state general election, the board shall within
2 16 thirty days direct the county commissioner of elections to
2 17 submit the question of imposition of the tax or combination of
2 18 taxes, as specified by the county board of supervisors, to the
2 19 registered voters of the whole county.
2 20 b. Alternatively, the question of imposition of any local
2 21 school infrastructure tax for school infrastructure purposes
2 22 may be proposed by motion or motions, requesting such
2 23 submission, adopted by the governing body of a school district
2 24 or school districts located within the county containing a
2 25 total, or a combined total in the case of more than one school
2 26 district, of at least sixty percent of the population of the
2 27 county, or by the county board of supervisors. Upon adoption
2 28 of such motion, the governing body of a school district shall
2 29 notify the board of supervisors of the adoption of the motion.
2 30 The motion may specify the board's preference as to the tax or
2 31 taxes to be imposed. However, the listing of the taxes is not
2 32 binding on the county. The county board of supervisors shall
2 33 submit the motion to the county commissioner of elections, who
2 34 shall publish notice of the ballot proposition concerning the
2 35 imposition of the local school infrastructure tax or
3 1 combination of taxes, as specified by the county board. A
3 2 motion ceases to be valid at the time of the holding of the
3 3 regular election for the election of members of the governing
3 4 body which adopted the motion.
3 5 3. The county commissioner of elections shall submit the
3 6 question of imposition of any local school infrastructure tax
3 7 for school infrastructure purposes at a state general election
3 8 or at a special election held at any time other than the time
3 9 of a city regular election. The election shall not be held
3 10 sooner than sixty days after publication of notice of the
3 11 ballot proposition. The ballot proposition shall specify the
3 12 type of tax or taxes, rate or rates of tax, and the date the
3 13 tax or taxes will be imposed and repealed, and shall contain a
3 14 statement as to the specific purpose or purposes for which the
3 15 revenues shall be expended. The rate or rates of tax shall
3 16 not be more than specified in section 422E.1, subsection 2, as
3 17 set by the county board of supervisors. The state
3 18 commissioner of elections shall establish by rule the form for
3 19 the ballot proposition which form shall be uniform throughout
3 20 the state.
3 21 4. a. The tax or taxes may be repealed or the rate or
3 22 rates increased, but not the maximum set in section 422E.1,
3 23 subsection 2, or decreased after an election at which at least
3 24 sixty percent of those voting on the question of repeal or
3 25 rate change favored the repeal or rate change. The election
3 26 at which the question of repeal or rate change is offered
3 27 shall be called and held in the same manner and under the same
3 28 conditions as provided in this section for the election on the
3 29 imposition of the tax. The election may be held at any time
3 30 but not sooner than sixty days following publication of the
3 31 ballot proposition. However, the tax shall not be repealed
3 32 before it has been in effect for one year.
3 33 b. Within ten days of the election at which at least sixty
3 34 percent of those voting on the question favors the imposition,
3 35 repeal, or change in the rate of the tax, the county board of
4 1 supervisors shall give written notice to the director of
4 2 revenue and finance of the result of the election. Election
4 3 costs shall be apportioned among school districts within the
4 4 county on a pro rata basis in proportion to the number of
4 5 registered voters in each school district and the total number
4 6 of registered voters in all of the school districts within the
4 7 county.
4 8 A local school infrastructure tax shall not be repealed or
4 9 reduced in rate if obligations are outstanding which are
4 10 payable as provided in section 422E.7, unless funds sufficient
4 11 to pay the principal, interest, and premium, if any, on the
4 12 outstanding obligations at and prior to maturity have been
4 13 properly set aside and pledged for that purpose.
4 14 Sec. 3. NEW SECTION. 422E.3 COLLECTION OF TAX.
4 15 If at least sixty percent of those voting on the question
4 16 of imposition of a local school infrastructure tax or
4 17 combination of taxes for school infrastructure purposes favors
4 18 imposition of the tax or taxes, the tax or taxes shall be
4 19 imposed by the county board of supervisors within the county
4 20 pursuant to section 422E.2, at the rate specified for not
4 21 longer than a ten-year duration.
4 22 Sec. 4. NEW SECTION. 422E.4 LOCAL SALES AND SERVICES
4 23 TAX.
4 24 1. A sales and services tax shall be imposed on the same
4 25 basis as the state sales and services tax and shall not be
4 26 imposed on the sale of any property or on any service not
4 27 taxed by the state, except the tax shall not be imposed on the
4 28 gross receipts from the sale of motor fuel or special fuel as
4 29 defined in chapter 452A, on the gross receipts from the rental
4 30 of rooms, apartments, or sleeping quarters which are taxed
4 31 under chapter 422A during the period the hotel and motel tax
4 32 is imposed, on the gross receipts from the sale of equipment
4 33 by the state department of transportation, and on the gross
4 34 receipts from the sale of a lottery ticket or share in a
4 35 lottery game conducted pursuant to chapter 99E.
5 1 2. The tax is applicable to transactions within the county
5 2 where it is imposed and shall be collected by all persons
5 3 required to collect state gross receipts taxes. The amount of
5 4 the sale, for purposes of determining the amount of the tax,
5 5 does not include the amount of any state gross receipts taxes
5 6 or other local option sales taxes. A tax permit other than
5 7 the state tax permit required under section 422.53 shall not
5 8 be required by local authorities.
5 9 3. The director of revenue and finance shall credit tax
5 10 receipts and interest and penalties from the local sales and
5 11 services tax for school infrastructure purposes to an account
5 12 within the county's local sales and services tax fund, as
5 13 created in section 422B.10, subsection 1, maintained in the
5 14 name of the school district or school districts located within
5 15 the county. If the director is unable to determine from which
5 16 county any of the receipts were collected, those receipts
5 17 shall be allocated among the possible counties based on
5 18 allocation rules adopted by the director.
5 19 4. a. The director of revenue and finance within fifteen
5 20 days of the beginning of each fiscal year shall send to each
5 21 school district where the tax is imposed an estimate of the
5 22 amount of tax moneys each school district will receive for the
5 23 year and for each month of the year. At the end of each
5 24 month, the director may revise the estimates for the year and
5 25 remaining months.
5 26 b. The director shall remit ninety-five percent of the
5 27 estimated tax receipts for the school district to the school
5 28 district on or before August 31 of the fiscal year and on or
5 29 before the last day of each following month.
5 30 c. The director shall remit a final payment of the
5 31 remainder of tax moneys due for the fiscal year before
5 32 November 10 of the next fiscal year. If an overpayment has
5 33 resulted during the previous fiscal year, the first payment of
5 34 the new fiscal year shall be adjusted to reflect any
5 35 overpayment.
6 1 If more than one school district, or a portion of a school
6 2 district, is located within the county, tax receipts shall be
6 3 remitted to each school district or portion of a school
6 4 district in which the county tax is imposed in a pro rata
6 5 share based upon the ratio which the percentage of actual
6 6 enrollment for the school district that attends school in the
6 7 county bears to the percentage of the total combined actual
6 8 enrollments for all school districts that attend school in the
6 9 county. The combined actual enrollment for a county, for
6 10 purposes of this section, shall be determined for each county
6 11 imposing a sales and services tax for school infrastructure
6 12 purposes by the department of management based on the actual
6 13 enrollment figures reported to the department of management by
6 14 the department of education pursuant to section 257.6,
6 15 subsection 1. The combined actual enrollment count shall be
6 16 forwarded to the director of the department of management by
6 17 March 1, annually, for purposes of supplying estimated tax
6 18 payment figures and making estimated tax payments pursuant to
6 19 this section for the following fiscal year.
6 20 5. The local sales and services tax for school
6 21 infrastructure purposes shall be administered as provided in
6 22 section 422B.9.
6 23 Sec. 5. NEW SECTION. 422E.5 LOCAL INCOME SURTAX.
6 24 1. The local income surtax shall be imposed on the state
6 25 individual income tax for the calendar year beginning
6 26 immediately following the election and shall be imposed on all
6 27 individuals residing in the county on the last day of the
6 28 applicable tax year. As used in this section, "state
6 29 individual income tax" means the taxes computed under section
6 30 422.5, less the credits allowed in sections 422.11A, 422.11B,
6 31 422.12, and 422.12B.
6 32 2. The director of revenue and finance shall administer
6 33 the local income surtax imposed under this chapter, and
6 34 sections 422.20, 422.22 to 422.31, 422.68, and 422.72 to
6 35 422.75 shall apply with respect to administration of the
7 1 income surtax.
7 2 3. The income surtax shall be made a part of the Iowa
7 3 individual income tax return subject to the conditions and
7 4 restrictions set forth in section 422.21.
7 5 4. The director of revenue and finance shall deposit all
7 6 moneys received as local income surtax to the credit of each
7 7 county from which the moneys are received, in the county
7 8 income surtax fund which is established in the office of the
7 9 treasurer of state.
7 10 The director of revenue and finance shall deposit local
7 11 income surtax moneys received on or before November 1 of the
7 12 year following the close of the calendar year for which the
7 13 surtax is imposed to the credit of each county from which the
7 14 moneys are received in the county income surtax fund.
7 15 Income surtax moneys received or refunded after November 1
7 16 of the year following the close of the calendar year for which
7 17 the surtax is imposed shall be deposited in or withdrawn from
7 18 the general fund of the state and shall be considered part of
7 19 the cost of administering the income surtax.
7 20 5. On or before October 20 of each year, the director of
7 21 revenue and finance shall make an accounting of the income
7 22 surtax collected under this chapter applicable to tax returns
7 23 for the last preceding calendar year from taxpayers in each
7 24 county in the state which has approved the income surtax, and
7 25 shall certify to the department of management and the
7 26 department of education the amount of total income surtax
7 27 credited from the taxpayers of the county.
7 28 6. a. A county income surtax fund is created in the
7 29 office of treasurer of state. Income surtaxes collected by
7 30 the department of revenue and finance under this chapter shall
7 31 be deposited in the county income surtax fund to the credit of
7 32 each school district located in the county. A separate
7 33 accounting of the surtax, by school district, shall be
7 34 maintained.
7 35 b. The director of revenue and finance shall draw warrants
8 1 in payment of the surtaxes collected and credited to special
8 2 accounts for each school district. Warrants shall be payable
8 3 in two installments to be paid on approximately the first day
8 4 of December and the first day of February following collection
8 5 of the taxes and shall be delivered to the respective school
8 6 districts.
8 7 If more than one school district, or a portion of a school
8 8 district, is located within the county, income surtax receipts
8 9 shall be remitted to each school district or portion of a
8 10 school district in which the county tax is imposed in a pro
8 11 rata share based upon the ratio which the percentage of actual
8 12 enrollment for the school district that attends school in the
8 13 county bears to the percentage of the total combined actual
8 14 enrollments for all school districts that attend school in the
8 15 county. The combined actual enrollment for a county, for
8 16 purposes of this section, shall be determined for each county
8 17 imposing an income surtax for school infrastructure purposes
8 18 by the department of management based on the actual enrollment
8 19 figures reported to the department of management by the
8 20 department of education pursuant to section 257.6, subsection
8 21 1. The combined actual enrollment count shall be forwarded to
8 22 the director of the department of management by March 1,
8 23 annually, for purposes of making surtax payments pursuant to
8 24 this section.
8 25 Sec. 6. NEW SECTION. 422E.6 PROPERTY TAX.
8 26 The board of supervisors of the county imposing a property
8 27 tax for school infrastructure purposes shall certify for levy
8 28 by April 15 following the favorable election and each year
8 29 thereafter until the tax is repealed the amount of the tax as
8 30 stated on the ballot proposition. Property tax receipts shall
8 31 be distributed by the county treasurer to the school district
8 32 located in the county.
8 33 If more than one school district, or a portion of a school
8 34 district, is located within the county, property tax receipts
8 35 shall be remitted to each school district or portion of a
9 1 school district in which the county tax is imposed in a pro
9 2 rata share based upon the ratio which the percentage of actual
9 3 enrollment for the school district that attends school in the
9 4 county bears to the percentage of the total combined actual
9 5 enrollments for all school districts that attend school in the
9 6 county. The combined actual enrollment for a county, for
9 7 purposes of this section, shall be determined for each county
9 8 imposing a property tax for school infrastructure purposes by
9 9 the department of management based on the actual enrollment
9 10 figures reported to the department of management by the
9 11 department of education pursuant to section 257.6, subsection
9 12 1. The combined actual enrollment count shall be forwarded to
9 13 the director of the department of management by March 1,
9 14 annually, for purposes of making tax payments pursuant to this
9 15 section for the fiscal year.
9 16 Sec. 7. NEW SECTION. 422E.7 BONDING.
9 17 The board of directors of a school district shall be
9 18 authorized to issue negotiable, interest-bearing school bonds,
9 19 without election, and utilize tax receipts derived from the
9 20 local school infrastructure tax or taxes for school
9 21 infrastructure purposes for principal and interest repayment.
9 22 Proceeds of the bonds issued pursuant to this section shall be
9 23 utilized solely for school infrastructure needs as school
9 24 infrastructure is defined in section 422E.1, subsection 3.
9 25 Issuance of bonds pursuant to this section shall be permitted
9 26 only in a district in which a local school infrastructure tax
9 27 for school infrastructure purposes has been imposed pursuant
9 28 to section 422E.2. The provisions of sections 298.22 through
9 29 298.24 shall apply regarding the form, rate of interest,
9 30 registration, redemption, and recording of bond issues
9 31 pursuant to this section, with the exception that the maximum
9 32 period during which principal on the bonds is payable shall
9 33 not exceed a ten-year period, or the date of repeal stated on
9 34 the ballot proposition.
9 35 Sec. 8. EFFECTIVE DATE. This Act, being deemed of
10 1 immediate importance, takes effect upon enactment.
10 2 EXPLANATION
10 3 This bill provides for the imposition of a local sales and
10 4 services tax, income surtax, or property tax, or combination
10 5 of the three by a county to be utilized for school
10 6 infrastructure purposes. The taxes would be separate and
10 7 distinct from any other such tax as otherwise imposed. The
10 8 sales and services tax would be subject to a 1 percent maximum
10 9 rate, be authorized for a maximum duration of 10 years, and be
10 10 imposed countywide. The income surtax and property tax may be
10 11 imposed at any rate specified on the ballot proposition.
10 12 Imposition of any tax could be requested by a petition signed
10 13 by 5 percent of the eligible electors of the whole county who
10 14 voted at the last preceding state general election, or by a
10 15 motion received by the county commissioner of elections
10 16 adopted by the governing body of the county or of a school
10 17 district or school districts located within the county
10 18 containing a total, or combined total, of at least 60 percent
10 19 of the population of the county. The tax would be imposed if
10 20 approved by at least 60 percent of those persons voting on the
10 21 question within the county at a state general election or a
10 22 special election called for imposition of the tax.
10 23 The bill provides for the crediting of tax receipts from a
10 24 county-imposed tax to special funds and specifies procedures
10 25 for remittance of receipts by the director of revenue and
10 26 finance in the case of the sales and services tax and income
10 27 surtax to a school district and by the county treasurer in
10 28 case of the property tax. The bill authorizes the issuance of
10 29 bonds payable from the tax receipts.
10 30 The bill defines "school infrastructure" as those
10 31 activities for which a school district is authorized to
10 32 contract indebtedness and to issue general obligation bonds
10 33 under Code section 296.1, except activities related to a
10 34 teacher's or superintendent's home or homes. These activities
10 35 include the construction, reconstruction, repair, purchasing,
11 1 or remodeling of schoolhouses, stadiums, gyms, fieldhouses,
11 2 and bus garages and schoolhouse site procurement and the
11 3 making of site improvements. Additionally, "school
11 4 infrastructure" includes the payment or retirement of
11 5 outstanding bonds previously and newly issued for school
11 6 infrastructure purposes.
11 7 The bill takes effect upon enactment.
11 8 LSB 3985XS 77
11 9 mg/sc/14.1
Text: SF02302 Text: SF02304 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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