Text: HF00591 Text: HF00593 Text: HF00500 - HF00599 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 of such authorization is equal to 1 10 at least sixty percent of the total vote cast for and against 1 11saidthe proposition atsaidthe election. 1 12 2. Notwithstanding subsection 1, if principal and interest 1 13 on bonds issued by a county, school corporation, or city are 1 14 to be paid in part with revenue from a local income surtax 1 15 imposed under section 76.19, the proposition shall so state 1 16 and the proposition is adopted if the vote in favor of the 1 17 proposition is equal to at least a majority of the total vote 1 18 cast for and against the proposition at the election. 1 19 However, a bond issuance proposition proposing imposition of 1 20 an income surtax shall not be presented to the electors if in 1 21 the first year the income surtax is imposed the total of all 1 22 income surtaxes authorized by law and imposed in that year on 1 23 any taxpayer in the political subdivision imposing the surtax 1 24 would exceed twenty percent. Upon request of the governing 1 25 authority, the department of management shall certify the 1 26 cumulative rate of income surtax being imposed in the 1 27 political subdivision. 1 28 3. All ballots cast and not counted as a vote for or 1 29 against the proposition shall not be used in computing the 1 30 total vote cast for and againstsaidthe proposition. 1 31 4. When a proposition to authorize an issuance of bonds 1 32 has been submitted to the electors under this section and the 1 33 proposal fails to gain approval by the required percentage of 1 34 votes, such proposal, or any proposal which incorporates any 1 35 portion of the defeated proposal, shall not be submitted to 2 1 the electors for a period ofsixtwelve months from the date 2 2 of such regular or special election. 2 3 Sec. 2. Section 76.1, Code 1999, is amended to read as 2 4 follows: 2 5 76.1 MANDATORY RETIREMENT. 2 6Hereafter issuesIssues of bonds of every kind and 2 7 character by counties, cities, and school corporations shall 2 8 be consecutively numbered. The annual levy of property tax or 2 9 a combination of property tax levy and income surtax imposed 2 10 as provided in section 76.19, if authorized by an election 2 11 held pursuant to section 75.1, shall be sufficient to pay the 2 12 interest and approximately such portion of the principal of 2 13 the bonds as will retire them in a period not exceedingtwenty2 14 twenty-two years from date of issue. Each issue of bonds 2 15 shall be scheduled to mature serially in the same order as 2 16 numbered. 2 17 Sec. 3. Section 76.2, Code 1999, is amended to read as 2 18 follows: 2 19 76.2 MANDATORY LEVY – OBLIGATIONS IN ANTICIPATION OF 2 20 LEVY. 2 21 The governing authority of these political subdivisions 2 22 before issuing bonds shall, by resolution, provide for the 2 23 assessment of an annual levy upon all the taxable property in 2 24 the political subdivision, or the assessment of an annual 2 25 property tax levy and imposition of an income surtax under 2 26 section 76.19, sufficient to pay theinterest andprincipal 2 27 and interest of the bonds within a period named not exceeding 2 28twenty yearsthat provided in section 76.1. A certified copy 2 29 of this resolution shall be filed with the county auditoror2 30the auditorsofthe countieseach county in which the 2 31 political subdivision is located; andthethis filing shall 2 32 make it a duty of theauditorsauditor to enter annually this 2 33 levy for collection from the taxable property within the 2 34 boundaries of the political subdivision until funds are 2 35 realized to pay the bonds in full. The property tax levy 3 1 shall continue to be made against property that is severed 3 2 from the political subdivision and the income surtax shall 3 3 continue to be imposed upon the residents of any area severed 3 4 from the political subdivision after the filing of the 3 5 resolution until funds are realized to pay the bonds in full. 3 6 Ifthea resolution which does not include imposition of an 3 7 income surtax is filed prior to April 1 or May 1, if the 3 8 political subdivision is a school district, the annual 3 9 property tax levy shall begin with the tax levy for collection 3 10 commencing July 1 of that year. If the resolution is filed 3 11 after April 1 or May 1, in the case of a school district, the 3 12 annual levy shall begin with the tax levy for collection in 3 13 the next succeeding fiscal year. However, the governing 3 14 authority of a political subdivision may adjust a levy of 3 15 taxes made under this section for the purpose of adjusting the 3 16 annual levies and collections for property severed from the 3 17 political subdivision, subject to the approval of the director 3 18 of the department of management. 3 19 If the resolution includes imposition of a local income 3 20 surtax, the annual property tax levy shall begin with the tax 3 21 levy for collection commencing July 1 of the calendar year 3 22 subsequent to the calendar year in which the resolution is 3 23 filed. However, the governing authority of a political 3 24 subdivision may adjust a levy of taxes made under this section 3 25 or rate of the income surtax under section 76.19 for the 3 26 purpose of adjusting the annual property tax levy or rate of 3 27 the surtax and collections for property severed from the 3 28 political subdivision, subject to the approval of the director 3 29 of the department of management. 3 30 If the resolution includes the imposition of a local income 3 31 surtax and it is filed with the department of revenue and 3 32 finance prior to August 1, the imposition of the surtax is 3 33 retroactive to January 1 of that calendar year. If the 3 34 resolution is filed with the department of revenue and finance 3 35 on or after August 1, the imposition of the income surtax is 4 1 January 1 of the next calendar year. 4 2 If funds, including reserves and amounts available for 4 3 temporary transfer, arefound to beinsufficient to pay in 4 4 full any installment of principal or interest, a public issuer 4 5 of bonds may anticipate the next levy of property taxes 4 6 pursuant to this section or the imposition of an income surtax 4 7 under section 76.19 in the manner provided in chapter 74, 4 8 whether the taxes so anticipated are to be collected in the 4 9 same or a future fiscal year. 4 10 To further secure the payment of the bonds, the governing 4 11 authority shall, by resolution, provide for the assessment of 4 12 an annual levy of a standby tax upon all taxable property 4 13 within the political subdivision. A copy of the resolution 4 14 shall be sent to the county auditor of each county in which 4 15 the political subdivision is located. The revenues from the 4 16 standby tax shall be deposited in a special fund and shall be 4 17 expended only for the payment of principal of and interest on 4 18 the bonds issued as provided in this section, when the revenue 4 19 from an income surtax as provided in section 76.19 is 4 20 insufficient. No reserves may be built up in this fund in 4 21 anticipation of a projected default. The governing authority 4 22 shall adjust the annual standby property tax levy for each 4 23 year to reflect the amount of revenues in the special fund and 4 24 the amount of principal and interest which is due in that 4 25 year. 4 26 Sec. 4. Section 76.4, Code 1999, is amended to read as 4 27 follows: 4 28 76.4 PERMISSIVE APPLICATION OF FUNDS. 4 29WheneverIf the governing authority ofsucha political 4 30 subdivisionshall havehas on hand funds derived fromany4 31othera source other than taxation which may be appropriated 4 32 to the payment either of interest or principal, or both 4 33 principal and interest of such bonds,suchthe funds may beso4 34 appropriated and used and the property tax levy and income 4 35 surtax, if imposed, for the payment of the bonds 5 1 correspondingly reduced. 5 2 Sec. 5. Section 76.7, Code 1999, is amended to read as 5 3 follows: 5 4 76.7 PARTICULAR BONDS AFFECTED – PAYMENT. 5 5 Counties, cities, and school corporations may at any time 5 6or timesextend or renew any legal indebtedness or any part 5 7thereofof the indebtedness theymayhave represented by bonds 5 8 or certificates wheresuchthe indebtedness is payable from a 5 9 limited annual property tax or from a voted annual property 5 10 tax or from a local income surtax imposed under section 76.19, 5 11 and may by resolution fund or refund thesamelegal 5 12 indebtedness and issue bondsthereforrunning not more than 5 13 twenty years to be known as funding or refunding bonds, and 5 14 make provision for the payment of the principal and interest 5 15thereoffrom the proceeds of an annual property tax or annual 5 16 property tax and local income surtax for the period covered by 5 17 such bonds similar to the tax authorized by law or by the 5 18 electors for the payment of the indebtedness so extended or 5 19 renewed. 5 20 Sec. 6. NEW SECTION. 76.19 INCOME SURTAX. 5 21 1. An income surtax may be imposed by a political 5 22 subdivision as provided in this section, but only if 5 23 authorized by the electors as provided in section 75.1. 5 24 2. The income surtax shall be imposed upon state income 5 25 taxes computed under section 422.5, less credits allowed in 5 26 sections 422.11A, 422.11B, 422.12, and 422.12B, and shall be 5 27 imposed upon the state income tax for each calendar year, or 5 28 for a taxpayer's fiscal year ending during the second half of 5 29 that calendar year or the first half of the succeeding 5 30 calendar year, and shall be imposed on all taxpayers residing 5 31 in the political subdivision on the last day of the applicable 5 32 tax year, and on taxpayers residing in areas severed from the 5 33 political subdivision as provided in section 76.2. 5 34 3. The income surtax shall be imposed to collect an amount 5 35 that is equivalent to sixty percent of the sum of the 6 1 principal and interest of the bonds over the life of the 6 2 bonds. The rate of the income surtax may be adjusted in any 6 3 year for the sole purpose of assuring that an amount 6 4 equivalent to sixty percent of the principal and interest over 6 5 the life of the bonds is collected. 6 6 4. At the time of the annual levy under section 76.2, the 6 7 governing authority of the political subdivision shall also 6 8 provide in the resolution for the imposition of the income 6 9 surtax and shall certify to the department of management such 6 10 sum expressed in dollars. The department shall determine the 6 11 rate of income surtax to be imposed based upon the most recent 6 12 available figures from state income taxes paid by taxpayers 6 13 residing in the political subdivision. The department shall 6 14 continue to make such calculations and certify the income 6 15 surtax rate to the auditor of the political subdivision with 6 16 adjustments as provided in this section until the principal 6 17 and interest on the bonds are paid in full. On or before 6 18 November 1 of each year in which the income surtax is 6 19 collected, the director of revenue and finance shall deposit 6 20 with the treasurer of the political subdivision the entire 6 21 amount of income surtax collected from taxpayers residing in 6 22 the political subdivision. 6 23 5. The costs of administration shall be determined by the 6 24 department of revenue and finance, and shall be based on a 6 25 share of the total cost of administering the department, in 6 26 the same proportion as the amount of income surtax collected 6 27 is to the amount of state income taxes collected. 6 28 6. The director of revenue and finance shall administer 6 29 the income surtax imposed under this chapter and sections 6 30 422.4, 422.20 through 422.31, 422.68, and 422.72 through 6 31 422.75 shall apply with respect to administration of the 6 32 income surtax. 6 33 Sec. 7. NEW SECTION. 76.20 INCOME TAX RETURNS. 6 34 An income surtax imposed under section 76.19 shall be made 6 35 a part of the Iowa individual income tax return subject to the 7 1 conditions and restrictions set forth in section 422.21. The 7 2 director of revenue and finance shall provide on income tax 7 3 returns a requirement that each person required to file a 7 4 return numerically identify the city of residence of the 7 5 taxpayer and the merged area in which the taxpayer resides. 7 6 Sec. 8. NEW SECTION. 76.21 DESIGNATION OF TAX. 7 7 An income surtax imposed under section 76.19 by a school 7 8 district shall be designated as a school debt service income 7 9 surtax, an income surtax imposed by a merged area shall be 7 10 designated as a merged area debt service income surtax, an 7 11 income surtax imposed by a city under section 76.19 shall be 7 12 designated a city debt service income surtax, and an income 7 13 surtax imposed by a county shall be designated a county debt 7 14 service income surtax. 7 15 Sec. 9. Section 260C.21, Code 1999, is amended to read as 7 16 follows: 7 17 260C.21 ELECTION TO INCUR INDEBTEDNESS. 7 18 1. No indebtedness shall be incurred under section 260C.19 7 19 until authorized by an election. A proposition to incur 7 20 indebtedness and issue bonds for community college purposes 7 21 shall be deemedcarriedadopted in a merged area if approved 7 22 by a sixty percent majority of all voters voting on the 7 23 proposition in the area. However, if the board elects to 7 24 partially fund the bonds with revenues from a local income 7 25 surtax, in addition to property tax revenues, the ballot 7 26 proposition to authorize the issuance of the bonds shall be 7 27 submitted to the electorate pursuant to section 75.1, 7 28 subsection 2. 7 29 2. Notwithstanding subsection 1, if the costs of utilities 7 30 are paid by a community college with funds derived from the 7 31 levy authorized under section 260C.22, the community college 7 32 may use the general fund moneys that would have been used to 7 33 pay the costs of utilities for capital expenditures, may 7 34 invest the funds, or may incur indebtedness without an 7 35 election, provided that the payments on the indebtedness 8 1 incurred, and any interest on the indebtedness, can be made 8 2 using general funds of the community college and the total 8 3 payments on the principal and interest on the indebtedness do 8 4 not exceed the amount of the costs of the utilities. 8 5 Sec. 10. Section 296.1, Code 1999, is amended to read as 8 6 follows: 8 7 296.1 INDEBTEDNESS AUTHORIZED. 8 8 Subject to the approval of the voters thereof, school 8 9 districts areherebyauthorized to contract indebtedness and 8 10 to issue general obligation bonds to provide funds to defray 8 11 the cost of purchasing, building, furnishing, reconstructing, 8 12 repairing, improving or remodeling a schoolhouse or 8 13 schoolhouses and additions thereto, gymnasium, stadium, field 8 14 house, school bus garage, teachers' or superintendent's home 8 15 or homes, and procuring a site or sites therefor, or 8 16 purchasing land to add to a site already owned, or procuring 8 17 and improving a site for an athletic field, or improving a 8 18 site already owned for an athletic field, and for any one or 8 19 more of such purposes. Taxes for the payment ofsaidthe 8 20 bonds shall be levied or imposed in accordance with chapter 8 21 76, andsaidthe bonds shall mature withina period not8 22exceeding twenty years from date of issuethe period provided 8 23 in section 76.1, shall bear interest at a rate or rates not 8 24 exceeding that permitted by chapter 74A, and shall be of such 8 25 form as the board of directors ofsuchthe school district 8 26 shall by resolution provide, but the aggregate indebtedness of 8 27 any school district shall not exceed five percent of the 8 28 actual value of the taxable property withinsaidthe school 8 29 district, as ascertained by the last preceding state and 8 30 county tax lists. 8 31 Sec. 11. Section 296.6, Code 1999, is amended to read as 8 32 follows: 8 33 296.6 BONDS. 8 34 If the vote in favor of the issuance of such bonds is equal 8 35 to at least sixty percent of the total vote cast for and 9 1 againstsaidthe proposition atsaidthe election, the board 9 2 of directors shall issue thesamebonds and make provision for 9 3 paymentthereofof the bonds. However, if the board of 9 4 directors of a school corporation elects to partially fund the 9 5 bonds with revenues from a local income surtax, in addition to 9 6 property tax revenues, the ballot proposition to authorize the 9 7 issuance of the bonds shall be submitted to the electorate 9 8 pursuant to section 75.1, subsection 2. 9 9 Sec. 12. Section 298.14, unnumbered paragraph 1, Code 9 10 1999, is amended to read as follows: 9 11 For each fiscal year, the cumulative total of the percents 9 12 of surtax approved by the board of directors of a school 9 13 district and collected by the department of revenue and 9 14 finance under sections 257.21, 257.29, 279.54, and 298.2, and 9 15 the enrichment surtax under section 442.15, Code 1989, and an 9 16 income surtax collected by a political subdivision under 9 17 chapter 422D, shall not exceed twenty percent. In addition, 9 18 if an income surtax is imposed under section 76.19, the 9 19 cumulative total of percents of surtax imposed on any taxpayer 9 20 in a school district under sections 76.19, 257.21, 257.29, 9 21 279.54, 298.2, 442.15, Code 1989, and chapter 422D shall not 9 22 exceed twenty percent in the first year in which one or more 9 23 of these income surtaxes is imposed. 9 24 Sec. 13. Section 298.18, unnumbered paragraphs 2, 4, and 9 25 6, Code 1999, are amended to read as follows: 9 26 The amount estimatedand certified to apply onto pay 9 27 principal and interest for any one year shall not exceed an 9 28 amount that could be raised by a property tax levy equal to 9 29 two dollars and seventy cents per thousand dollars of the 9 30 assessed valuation of the taxable property of the school 9 31 corporation except as hereinafter provided. 9 32 The amount estimatedand certified to apply onto pay 9 33 principal and interest for any one year may exceed an amount 9 34 that could be raised by a property tax levy equal to two 9 35 dollars and seventy cents per thousand dollars of assessed 10 1 value by the amount approved by the voters of the school 10 2 corporation, but not exceeding four dollars and five cents per 10 3 thousand of the assessed value of the taxable property within 10 4 any school corporation, provided that the qualified voters of 10 5 such school corporation have first approved such increased 10 6 amount at a special election, which may be held at the same 10 7 time as the regular school election. The proposition 10 8 submitted to the voters at such special election shall be in 10 9 substantially the following form: 10 10 Notice of the election shall be given by the county 10 11 commissioner of elections according to section 49.53. The 10 12 election shall be held on a date not less than four nor more 10 13 than twenty days after the last publication of the notice. At 10 14suchthe election the ballot used for the submission ofsaid10 15 the proposition shall be in substantially the form for 10 16 submitting special questions at general elections. The county 10 17 commissioner of elections shall conduct the election pursuant 10 18 to the provisions of chapters 39 to 53 and certify the results 10 19 to the board of directors.SuchThe proposition shall not be 10 20 deemedcarried oradopted unless the vote in favor ofsuchthe 10 21 proposition is equal to at least sixty percent of the total 10 22 vote cast for and againstsaidthe proposition atsaidthe 10 23 election. However, if the board of directors of a school 10 24 district elects to partially fund the bonds with revenues from 10 25 a local income surtax, in addition to property tax revenues, 10 26 the ballot proposition to authorize the issuance of the bonds 10 27 shall be submitted to the electorate pursuant to section 75.1, 10 28 subsection 2.WheneverIf such a proposition has been 10 29 approved by the voters of a school corporation as hereinbefore 10 30 provided, no further approval of the voters ofsuchthe school 10 31 corporation shall be required as a result of any subsequent 10 32 change in the boundaries ofsuchthe school corporation. 10 33 Sec. 14. Section 298.22, unnumbered paragraph 1, Code 10 34 1999, is amended to read as follows: 10 35All of saidThe bonds shall be substantially in the form 11 1 provided for county bonds, but subject to changes that will 11 2 conform them to the action of the boardproviding therefor; 11 3 shallrun not more than twenty yearsmature within the period 11 4 provided in section 76.1, and may be sooner paid if so 11 5 nominated in the bond; bear a rate of interest not exceeding 11 6 that permitted by chapter 74A, payable semiannually; be signed 11 7 by the president and countersigned by the secretary of the 11 8 board of directors; and shall not be disposed of for less than 11 9 par value, nor issued for other purposes than this chapter 11 10 provides. 11 11 Sec. 15. Section 331.442, subsection 4, Code 1999, is 11 12 amended to read as follows: 11 13 4. The proposition of issuing bonds for a general county 11 14 purpose is notcarried oradopted unless the vote in favor of 11 15 the proposition is equal to at least sixty percent of the 11 16 total vote cast for and against the proposition at the 11 17 election. However, if the board elects to partially fund the 11 18 bonds with revenues from a local income surtax, in addition to 11 19 property tax revenues, the ballot proposition to authorize the 11 20 issuance of the bonds shall be submitted to the electorate 11 21 pursuant to section 75.1, subsection 2. If the proposition of 11 22 issuing the general county purpose bonds is approved by the 11 23 voters, the board may proceed with the issuance of the bonds. 11 24 Sec. 16. Section 331.442, subsection 5, paragraph a, 11 25 unnumbered paragraph 1, Code 1999, is amended to read as 11 26 follows: 11 27 Notwithstanding subsection 2, a board, in lieu of calling 11 28 an election, may institute proceedings for the issuance of 11 29 bonds for a general county purpose by causing a notice of the 11 30 proposal to issue the bonds, including a statement of the 11 31 amount and purpose of the bonds, the type or types of debt 11 32 service tax to be levied or imposed to pay principal and 11 33 interest on the bonds, and the right to petition for an 11 34 election, to be published as provided in section 331.305 at 11 35 least ten days prior to the meeting at which it is proposed to 12 1 take action for the issuance of the bonds subject to the 12 2 following limitations: 12 3 Sec. 17. Section 331.447, subsection 1, Code 1999, is 12 4 amended to read as follows: 12 5 1. Taxes for the payment of general obligation bonds shall 12 6 be levied or imposed in accordance with chapter 76, and the 12 7 bonds are payable fromthe levy of unlimited ad valorem taxes12 8on all the taxable property within the countya debt service 12 9 property tax or a combination of a debt service property tax 12 10 and a debt service income surtax, unlimited as to amount, 12 11 throughitsthe county's debt service fund required by section 12 12 331.430 except that: 12 13 a. The amount estimatedand certifiedtoapplypay on 12 14 principal and interest for any one year shall not exceed an 12 15 amount that could be raised by a debt service property tax 12 16 levy equal to the maximum rate of tax, if any, provided by 12 17 this division for the purpose for which the bonds were issued. 12 18 If general obligation bonds are issued for different 12 19 categories, as provided in section 331.445, the maximum rate 12 20 of levies, if any, for each purpose shall apply separately to 12 21 that portion of the bond issue for that category and the 12 22 resolution authorizing the bond issue shall clearly set forth 12 23 the annual debt service requirements with respect to each 12 24 purpose in sufficient detail to indicate compliance with the 12 25 rate of tax levy, if any. 12 26 b. The amount estimatedand certifiedtoapplypay on 12 27 principal and interest for any one year may only exceed an 12 28 amount that could be raised by a debt service property tax 12 29 levy equal to the statutory rate of levy limit, if any, by the 12 30 amount that the registered voters of the county have approved 12 31 at a special election, which may be held at the same time as 12 32 the general election and may be included in the proposition 12 33 authorizing the issuance of bonds, if an election on the 12 34 proposition is necessary, or may be submitted as a separate 12 35 proposition at the same election or at a different election. 13 1 Notice of the election shall be given as specified in section 13 2 331.305. If the proposition includes issuing bonds and 13 3 increasing the levy limit, it shall be in substantially the 13 4 following form: 13 5 Shall the county of ........, state of Iowa, be authorized 13 6 to .......... (here state purpose of project) at a total cost 13 7 not exceeding $...... and issue its general obligation bonds 13 8 in an amount not exceeding $..... for that purpose, and be 13 9 authorized to levy annually a debt service property tax (or 13 10 debt service property tax and income surtax, if applicable), 13 11 which will produce an amount not exceeding ........ dollars 13 12 and ........ cents per thousand dollars of the assessed value 13 13 of the taxable property within the county to pay the principal 13 14 of and interest on the bonds? 13 15 If the proposition includes only increasing the levy limit 13 16 it shall be in substantially the following form: 13 17 Shall the county of ........, state of Iowa, be authorized 13 18 to levy annually a debt service property tax (or debt service 13 19 property tax and income surtax, if applicable), which will 13 20 produce an amount NOT exceeding ...... dollars and ...... 13 21 cents per thousand dollars of the assessed value of the 13 22 taxable property within the county to pay principal and 13 23 interest on the bonded indebtedness of the county for the 13 24 purpose of ..........? 13 25 Sec. 18. Section 331.490, Code 1999, is amended to read as 13 26 follows: 13 27 331.490 CITIES SUBJECT TO DEBT SERVICE TAX LEVY – RATES. 13 28 1. If a county and city have entered into an agreement to 13 29 create a joint special assessment district and issue county 13 30 general obligation bonds to fund the costs of a public 13 31 improvement benefiting that district, the county's debt 13 32 service property tax levy for the county general obligation 13 33 bonds shall not be levied against property located in any city 13 34 except a city which has entered into the agreement, and, if 13 35 applicable, the county's debt service income surtax for the 14 1 county general obligation bonds shall not be imposed on 14 2 taxpayers who reside in any city except a city which has 14 3 entered into the agreement. 14 4 2. Counties and cities entering into an agreement for a 14 5 joint special assessment district may provide in the agreement 14 6 for a different rate of the county's debt service tax levy 14 7 against property in areas of the county outside a city and 14 8 property within the cities, and, if applicable, for a 14 9 different rate of the county's debt service income surtax to 14 10 be imposed on taxpayers residing outside the cities and those 14 11 residing within each city. 14 12 Sec. 19. Section 384.26, subsections 2 and 4, Code 1999, 14 13 are amended to read as follows: 14 14 2. Before the council may institute proceedings for the 14 15 issuance of bonds for a general corporate purpose, it shall 14 16 call a special city election to vote upon the question of 14 17 issuing the bonds. At the election the proposition must be 14 18 submitted in substantially the following form: 14 19 Shall the ............ (insert the name of the city) issue 14 20 its bonds in an amount not exceeding the amount of $....... 14 21 for the purpose of .........., such bonds to be payable from a 14 22 property tax levied on all taxable property within the city 14 23 (and income surtax to be imposed on the state income tax of 14 24 each income taxpayer residing in the city)? 14 25 4. The proposition of issuing general corporate purpose 14 26 bonds is notcarried oradopted unless the vote in favor of 14 27 the proposition is equal to at least sixty percent of the 14 28 total vote cast for and against the proposition at the 14 29 election. However, if the city council elects to partially 14 30 fund the bonds with revenues from a local income surtax, in 14 31 addition to property tax revenues, the ballot proposition to 14 32 authorize the issuance of the bonds shall be submitted to the 14 33 electorate pursuant to section 75.1, subsection 2. If the 14 34 proposition of issuing the general corporate purpose bonds is 14 35 approved by the voters, the city may proceed with the issuance 15 1 of the bonds. 15 2 Sec. 20. Section 384.26, subsection 5, paragraph a, 15 3 unnumbered paragraph 1, Code 1999, is amended to read as 15 4 follows: 15 5 Notwithstanding the provisions of subsection 2, a council 15 6 may, in lieu of calling an election, institute proceedings for 15 7 the issuance of bonds for a general corporate purpose by 15 8 causing a notice of the proposal to issue the bonds, including 15 9 a statement of the amount and purpose of the bonds, the type 15 10 or types of debt service tax to be levied or imposed to pay 15 11 principal and interest on the bonds, together with the maximum 15 12 rate of interest which the bonds are to bear, and the right to 15 13 petition for an election, to be published at least once in a 15 14 newspaper of general circulation within the city at least ten 15 15 days prior to the meeting at which it is proposed to take 15 16 action for the issuance of the bonds subject to the following 15 17 limitations: 15 18 Sec. 21. Section 384.32, Code 1999, is amended to read as 15 19 follows: 15 20 384.32 TAX TO PAY. 15 21 Taxes for the payment of general obligation bonds must be 15 22 levied in accordance with chapter 76, and the bonds are 15 23 payable from the levy ofunlimited ad valorem taxes on all the15 24taxable property within the citya debt service property tax 15 25 or a combination of a debt service property tax and a debt 15 26 service income surtax, unlimited as to amount, throughitsthe 15 27 city's debt service fund authorized by section 384.4. 15 28 Sec. 22. APPLICABILITY. This Act applies to bond issues 15 29 approved at elections held on or after the effective date of 15 30 this Act. 15 31 EXPLANATION 15 32 Current law requires that general obligation bonds payable 15 33 with property tax and issued by a county, city, or school 15 34 district must be approved at election by a 60 percent majority 15 35 vote. This bill reduces the vote requirement for passage to a 16 1 simple majority vote if a portion of the bonds to be issued is 16 2 paid by a local income surtax established in the bill. 16 3 The bill requires that at least 60 percent of the principal 16 4 and interest on the bonds be paid by the local income surtax. 16 5 The bill also limits to 20 percent the cumulative rate of all 16 6 local income surtaxes that may be imposed on any one taxpayer. 16 7 The bill increases from six months to 12 months the amount 16 8 of time before a defeated bond issuance proposition may be 16 9 placed on the ballot again. 16 10 The bill applies to bond issuance elections held on or 16 11 after the effective date of the bill. 16 12 LSB 2294HH 78 16 13 sc/jw/5
Text: HF00591 Text: HF00593 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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