Text: HF00159 Text: HF00161 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 75.1, Code 1999, is amended to read as 1 2 follows: 1 3 75.1 BONDS – ELECTION – VOTE REQUIRED. 1 4 1. When a proposition to authorize an issuance of bonds by 1 5 a county, township, school corporation, city, or by any local 1 6 board or commission, is submitted to the electors,suchthe 1 7 propositionshall not be deemed carried or adopted, anything1 8in the statutes to the contrary notwithstanding, unlessis 1 9 adopted if the vote in favor ofsuch authorizationthe 1 10 proposition is equal to at least sixty percent of the total 1 11 vote cast for and againstsaidthe proposition atsaidthe 1 12 election. 1 13 2. Notwithstanding subsection 1, if the annual levy of 1 14 property tax to pay principal and interest on bonds issued by 1 15 a school corporation is to be offset with revenue from an 1 16 income surtax imposed pursuant to section 76.19, the 1 17 proposition shall so state and the proposition is adopted if 1 18 the vote in favor of the proposition is equal to a majority of 1 19 the total vote cast for and against the proposition at the 1 20 election. 1 21 3. All ballots cast and not counted as a vote for or 1 22 against the proposition shall not be used in computing the 1 23 total vote cast for and againstsaidthe proposition. 1 24 4. When a proposition to authorize an issuance of bonds 1 25 has been submitted to the electors under this section and the 1 26 proposal fails to gain approval by the required percentage of 1 27 votes, such proposal, or any proposal which incorporates any 1 28 portion of the defeated proposal, shall not be submitted to 1 29 the electors for a period ofsixtwelve months from the date 1 30 of such regular or special election. 1 31 Sec. 2. Section 76.1, Code 1999, is amended to read as 1 32 follows: 1 33 76.1 MANDATORY RETIREMENT. 1 34Hereafter issuesIssues of bondsof every kind and1 35characterby counties, cities, and school corporations shall 2 1 be consecutively numbered. The annual levy of property tax, 2 2 or combination of property tax levy and income surtax imposed 2 3 as provided in section 76.19, shall be sufficient to pay the 2 4 interest and approximatelysuchthat portion of the principal 2 5 of the bonds as will retire them in a period not exceeding 2 6twentytwenty-two years from date of issue. Each issue of 2 7 bonds shall be scheduled to mature serially in the same order 2 8 as numbered. 2 9 Sec. 3. Section 76.2, Code 1999, is amended to read as 2 10 follows: 2 11 76.2 MANDATORY LEVY – OBLIGATIONS IN ANTICIPATION OF 2 12 LEVY. 2 13 The governing authority of these political subdivisions 2 14 before issuing bonds shall, by resolution, provide for the 2 15 assessment of an annual levy upon all the taxable property in 2 16 the political subdivision, or the assessment of an annual 2 17 property tax levy and imposition of an income surtax under 2 18 section 76.19, sufficient to pay theinterest andprincipal 2 19 and interest of the bonds within a period named not exceeding 2 20twenty yearsthat provided in section 76.1. A certified copy 2 21 of this resolution shall be filed with the county auditor or 2 22 the auditors of the counties in which the political 2 23 subdivision is located; and the filing shall make it a duty of 2 24 the auditors to enter annually this levy for collection from 2 25 the taxable property within the boundaries of the political 2 26 subdivision until funds are realized to pay the bonds in full. 2 27 The property tax levy shall continue to be made against 2 28 property that is severed from the political subdivision after 2 29 the filing of the resolution until funds are realized to pay 2 30 the bonds in full and an income surtax shall continue to be 2 31 imposed upon the residents of any area severed from a school 2 32 corporation. 2 33 Ifthea resolution which does not include imposition of an 2 34 income surtax is filed prior to April 1, or May 1,if the 2 35 political subdivision is a school district, the annual levy 3 1 shall begin with the tax levy for collection commencing July 1 3 2 of that year. If the resolution is filed after April 1, or 3 3 May 1,in the case of a school district, or if the resolution 3 4 includes imposition of an income surtax, the annual property 3 5 tax levy shall begin with the tax levy for collection in the 3 6 next succeeding fiscal year. If the resolution includes the 3 7 imposition of a local income surtax and it is filed with the 3 8 department of revenue and finance prior to August 1, the 3 9 imposition of the surtax is retroactive to January 1 of that 3 10 calendar year. If the resolution is filed with the department 3 11 of revenue and finance on or after August 1, the imposition of 3 12 the income surtax begins on January 1 of the next calendar 3 13 year. However, the governing authority of a political 3 14 subdivision may adjust a levy of taxes made under this section 3 15 for the purpose of adjusting the annual levies and collections 3 16 and income surtax rate for property severed from the political 3 17 subdivision, subject to the approval of the director of the 3 18 department of management. 3 19 If funds, including reserves and amounts available for 3 20 temporary transfer, arefound to beinsufficient to pay in 3 21 full any installment of principal or interest, a public issuer 3 22 of bonds may anticipate the next levy of property taxes 3 23 pursuant to this section or the imposition of an income surtax 3 24 under section 76.19 in the manner provided in chapter 74, 3 25 whether the taxes so anticipated are to be collected in the 3 26 same or a future fiscal year. 3 27 To further secure the payment of the bonds, the governing 3 28 authority shall, by resolution, provide for the assessment of 3 29 an annual levy of a standby tax upon all taxable property 3 30 within the political subdivision. A copy of the resolution 3 31 shall be sent to the county auditor of each county in which 3 32 the political subdivision is located. The revenues from the 3 33 standby tax shall be deposited in a special fund and shall be 3 34 expended only for the payment of principal and interest on the 3 35 bonds issued as provided in this section, when the revenue 4 1 from an income surtax as provided in section 76.19 is 4 2 insufficient. Reserves shall not be built up in this fund in 4 3 anticipation of a projected default. The governing authority 4 4 shall adjust the annual standby property tax levy for each 4 5 year to reflect the amount of revenues in the special fund and 4 6 the amount of principal and interest which is due in that 4 7 year. 4 8 Sec. 4. Section 76.4, Code 1999, is amended to read as 4 9 follows: 4 10 76.4 PERMISSIVE APPLICATION OF FUNDS. 4 11WheneverIf the governing authority ofsucha political 4 12 subdivisionshall havehas on hand funds derived fromany4 13othera source other than taxation which may be appropriated 4 14 to the payment either ofinterest orprincipal or interest, or 4 15 both principal and interest of such bonds,suchthe funds may 4 16 be so appropriated and used and the property tax levy and 4 17 income surtax, if imposed, for the payment of the bonds 4 18 correspondingly reduced. 4 19 Sec. 5. Section 76.7, Code 1999, is amended to read as 4 20 follows: 4 21 76.7 PARTICULAR BONDS AFFECTED – PAYMENT. 4 22 Counties, cities, and school corporations may at any time 4 23or timesextend or renew any legal indebtedness or any part 4 24thereofof the indebtedness theymayhave represented by bonds 4 25 or certificates wheresuchthe indebtedness is payable from a 4 26 limited annual property tax or from a voted annual property 4 27 tax, or from an income surtax imposed under section 76.19, and 4 28 may by resolution fund or refund thesamelegal indebtedness 4 29 and issue bondsthereforrunning not more than twenty years to 4 30 be known as funding or refunding bonds, and make provision for 4 31 the payment of the principal and interestthereoffrom the 4 32 proceeds of an annual property tax, or annual property tax and 4 33 income surtax, for the period covered bysuchthe bonds 4 34 similar to the tax authorized by law or by the electors for 4 35 the payment of the indebtednesssoextended or renewed. 5 1 Sec. 6. NEW SECTION. 76.19 INCOME SURTAX. 5 2 1. An income surtax may be imposed by a school corporation 5 3 as provided in this section, but only if authorized by the 5 4 electors as provided in section 75.1. 5 5 2. The income surtax shall be imposed upon state income 5 6 taxes computed under section 422.5, less credits allowed in 5 7 sections 422.11A, 422.11B, 422.12, and 422.12B, and shall be 5 8 imposed upon the state income tax for each calendar year, or 5 9 for a taxpayer's fiscal year ending during the second half of 5 10 that calendar year or the first half of the succeeding 5 11 calendar year, and shall be imposed on all taxpayers residing 5 12 within the boundaries of the school corporation on the last 5 13 day of the applicable tax year. 5 14 3. The income surtax shall be imposed to collect an amount 5 15 that is equivalent to sixty percent of the sum of the 5 16 principal and interest of the bonds over the life of the 5 17 bonds. The rate of the income surtax may be adjusted in any 5 18 year for the sole purpose of ensuring that an amount 5 19 equivalent to sixty percent of the principal and interest over 5 20 the life of the bonds is collected. An income surtax imposed 5 21 pursuant to this section shall not exceed twenty percent. 5 22 4. At the time of the annual levy under section 76.2, the 5 23 governing authority of the school corporation shall also 5 24 provide in the resolution for the imposition of the income 5 25 surtax and shall certify to the department of management such 5 26 sum expressed in dollars. The department shall determine the 5 27 rate of income surtax to be imposed based upon the most recent 5 28 available figures from state income taxes paid by taxpayers 5 29 residing in the school corporation. The department shall 5 30 continue to make such calculations and certify the income 5 31 surtax rate to the county auditor or the auditors of the 5 32 counties in which the school corporation is located with 5 33 adjustments as provided in this section until the principal 5 34 and interest on the bonds are paid in full. On or before 5 35 November 1 of each year in which the income surtax is 6 1 collected the director of revenue and finance shall deposit 6 2 with the treasurer of the school corporation the entire amount 6 3 of income surtax collected from taxpayers residing in the 6 4 school corporation. 6 5 5. The costs of administration shall be determined by the 6 6 department of revenue and finance, and shall be based on a 6 7 share of the total cost of administering the department, in 6 8 the same proportion as the amount of income surtax collected 6 9 is to the amount of state income taxes collected. 6 10 6. The director of revenue and finance shall administer 6 11 the income surtax imposed under this chapter and sections 6 12 422.4, 422.20 through 422.31, 422.68, and 422.72 through 6 13 422.75 shall apply with respect to administration of the 6 14 income surtax. 6 15 Sec. 7. NEW SECTION. 76.20 INCOME TAX RETURNS. 6 16 An income surtax imposed under section 76.19 shall be made 6 17 a part of the Iowa individual income tax return subject to the 6 18 conditions and restrictions set forth in section 422.21. The 6 19 director of revenue and finance shall provide on income tax 6 20 returns a requirement that each person required to file a 6 21 return numerically identify the merged area in which the 6 22 taxpayer resides. 6 23 Sec. 8. NEW SECTION. 76.21 PROPERTY TAX CREDIT – 6 24 AGRICULTURAL AND RESIDENTIAL PROPERTY. 6 25 Local income surtax revenues collected under section 76.19 6 26 shall be used to offset the annual levy of property tax on 6 27 property assessed as agricultural or residential property. 6 28 The surtax shall be distributed in the following manner: 6 29 Upon receipt of the revenues collected from the income 6 30 surtax, the county treasurer shall notify the county auditor 6 31 of the amount of income surtax revenues received. The auditor 6 32 shall determine the amount to be credited to each parcel of 6 33 real property located within the boundaries of the school 6 34 corporation and assessed as agricultural or residential 6 35 property, and shall enter such amount upon the tax lists as a 7 1 credit against the tax levied on each parcel of real property 7 2 assessed as agricultural or residential property. The county 7 3 treasurer shall show on each tax receipt the amount of tax 7 4 credit to be applied against property taxes payable in the 7 5 fiscal year following the year in which the surtax was 7 6 collected for each parcel of real property assessed as 7 7 agricultural or residential property. In case of change of 7 8 ownership, the credit shall remain with the parcel. 7 9 The amount of the credit funded by revenues from the income 7 10 surtax imposed under section 76.19 shall be an amount equal to 7 11 a pro rata share based upon the ratio of the taxable value of 7 12 each parcel to receive the credit to the total taxable value 7 13 of all property to receive the credit. 7 14 Sec. 9. NEW SECTION. 76.22 DESIGNATION OF TAX. 7 15 An income surtax imposed under section 76.19 by a school 7 16 district shall be designated as a school debt service income 7 17 surtax and an income surtax imposed by a merged area shall be 7 18 designated as a merged area debt service income surtax. 7 19 Sec. 10. Section 260C.21, Code 1999, is amended to read as 7 20 follows: 7 21 260C.21 ELECTION TO INCUR INDEBTEDNESS. 7 22 1. No indebtedness shall be incurred under section 260C.19 7 23 until authorized by an election. A proposition to incur 7 24 indebtedness and issue bonds for community college purposes 7 25 shall be deemed carried in a merged area if approved by a 7 26 sixty percent majority of all voters voting on the proposition 7 27 in the area. However, if the board elects to impose an income 7 28 surtax pursuant to section 76.19, the ballot proposition to 7 29 authorize the issuance of the bonds shall be submitted to the 7 30 electorate pursuant to section 75.1, subsection 2. 7 31 2. Notwithstanding subsection 1, if the costs of utilities 7 32 are paid by a community college with funds derived from the 7 33 levy authorized under section 260C.22, the community college 7 34 may use the general fund moneys that would have been used to 7 35 pay the costs of utilities for capital expenditures, may 8 1 invest the funds, or may incur indebtedness without an 8 2 election, provided that the payments on the indebtedness 8 3 incurred, and any interest on the indebtedness, can be made 8 4 using general funds of the community college and the total 8 5 payments on the principal and interest on the indebtedness do 8 6 not exceed the amount of the costs of the utilities. 8 7 Sec. 11. Section 296.1, Code 1999, is amended to read as 8 8 follows: 8 9 296.1 INDEBTEDNESS AUTHORIZED. 8 10 Subject to the approval of the voters thereof, school 8 11 districts areherebyauthorized to contract indebtedness and 8 12 to issue general obligation bonds to provide funds to defray 8 13 the cost of purchasing, building, furnishing, reconstructing, 8 14 repairing, improving or remodeling a schoolhouse or 8 15 schoolhouses and additions thereto, gymnasium, stadium, field 8 16 house, school bus garage, teachers' or superintendent's home 8 17 or homes, and procuring a site or sites therefor, or 8 18 purchasing land to add to a site already owned, or procuring 8 19 and improving a site for an athletic field, or improving a 8 20 site already owned for an athletic field, and for any one or 8 21 more of such purposes. Taxes for the payment ofsaidthe 8 22 bonds shall be levied or imposed in accordance with chapter 8 23 76, andsaidthe bonds shall mature withina period not8 24exceeding twenty years from date of issuethe period provided 8 25 in section 76.1, shall bear interest at a rate or rates not 8 26 exceeding that permitted by chapter 74A and shall be of such 8 27 form as the board of directors ofsuchthe school district 8 28 shall by resolution provide, but the aggregate indebtedness of 8 29 any school district shall not exceed five percent of the 8 30 actual value of the taxable property withinsaidthe school 8 31 district, as ascertained by the last preceding state and 8 32 county tax lists. 8 33 Sec. 12. Section 296.6, Code 1999, is amended to read as 8 34 follows: 8 35 296.6 BONDS. 9 1 If the vote in favor of the issuance of such bonds is equal 9 2 to at least sixty percent of the total vote cast for and 9 3 againstsaidthe proposition atsaidthe election, the board 9 4 of directors shall issue thesamebonds and make provision for 9 5 paymentthereofof the bonds. However, if the board of 9 6 directors of a school district elects to impose an income 9 7 surtax pursuant to section 76.19, the ballot proposition to 9 8 authorize the issuance of the bonds shall be submitted to the 9 9 electorate pursuant to section 75.1, subsection 2. 9 10 Sec. 13. Section 298.18, unnumbered paragraphs 2, 4, and 9 11 6, Code 1999, are amended to read as follows: 9 12 The amount estimatedand certified to apply onto pay 9 13 principal and interest for any one year shall not exceed an 9 14 amount that could be raised by a property tax levy equal to 9 15 two dollars and seventy cents per thousand dollars of the 9 16 assessed valuation of the taxable property of the school 9 17 corporation except as hereinafter provided. 9 18 The amount estimatedand certified to apply onto pay 9 19 principal and interest for any one year may exceed an amount 9 20 that could be raised by a property tax levy equal to two 9 21 dollars and seventy cents per thousand dollars of assessed 9 22 value by the amount approved by the voters of the school 9 23 corporation, but not exceeding four dollars and five cents per 9 24 thousand of the assessed value of the taxable property within 9 25 any school corporation, provided that thequalifiedregistered 9 26 voters of such school corporation have first approved such 9 27 increased amount at a special election, which may be held at 9 28 the same time as the regular school election. The proposition 9 29 submitted to the voters at such special election shall be in 9 30 substantially the following form: 9 31 Notice of the election shall be given by the county 9 32 commissioner of elections according to section 49.53. The 9 33 election shall be held on a date not less than four nor more 9 34 than twenty days after the last publication of the notice. At 9 35suchthe election the ballot used for the submission ofsaid10 1 the proposition shall be in substantially the form for 10 2 submitting special questions at general elections. The county 10 3 commissioner of elections shall conduct the election pursuant 10 4 to the provisions of chapters 39 to 53 and certify the results 10 5 to the board of directors.SuchThe proposition shall not be 10 6 deemedcarried oradopted unless the vote in favor ofsuchthe 10 7 proposition is equal to at least sixty percent of the total 10 8 vote cast for and againstsaidthe proposition atsaidthe 10 9 election.WheneverHowever, if the board of directors of a 10 10 school district elects to impose an income surtax pursuant to 10 11 section 76.19, the ballot proposition shall be submitted to 10 12 the electorate pursuant to section 75.1, subsection 2. If 10 13 such a proposition has been approved by the voters of a school 10 14 corporation as hereinbefore provided, no further approval of 10 15 the voters ofsuchthe school corporation shall be required as 10 16 a result of any subsequent change in the boundaries ofsuch10 17 the school corporation. 10 18 Sec. 14. Section 298.22, unnumbered paragraph 1, Code 10 19 1999, is amended to read as follows: 10 20All of saidThe bonds shall be substantially in the form 10 21 provided for county bonds, but subject to changes that will 10 22 conform them to the action of the boardproviding therefor;10 23 shallrun not more than twenty yearsmature within the period 10 24 provided in section 76.1, and may be sooner paid if so 10 25 nominated in the bond; bear a rate of interest not exceeding 10 26 that permitted by chapter 74A, payable semiannually; be signed 10 27 by the president and countersigned by the secretary of the 10 28 board of directors; and shall not be disposed of for less than 10 29 par value, nor issued for other purposes than this chapter 10 30 provides. 10 31 Sec. 15. APPLICABILITY DATE. This Act applies to bond 10 32 issuance elections held on or after the effective date of this 10 33 Act. 10 34 EXPLANATION 10 35 This bill reduces the vote required to approve a school 11 1 corporation bond issuance proposition from 60 percent to a 11 2 simple majority if an income surtax is imposed. A school 11 3 corporation is a school district, merged area, or area 11 4 education agency. The bill provides that the revenue 11 5 collected from the income surtax is to be distributed to 11 6 agricultural and residential property taxpayers to offset the 11 7 property tax cost of the bonds for those taxpayers. The 11 8 income surtax imposed shall not exceed 20 percent. The bill 11 9 also provides that the income surtax collected to offset 11 10 agricultural and residential property taxes paid on the bonds 11 11 shall be an amount equivalent to 60 percent of the principal 11 12 and interest paid on the bonds over the life of the bonds. 11 13 The bill changes from 20 years to 22 years the length of 11 14 time that bonds can be outstanding. The bill also extends 11 15 from six months to 12 months the period of time in which a 11 16 defeated bond issuance proposal may be resubmitted to voters. 11 17 The bill applies to bond issuance elections held on or 11 18 after the effective date of the bill. 11 19 LSB 1473YH 78 11 20 sc/gg/8
Text: HF00159 Text: HF00161 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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