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Senate File 417

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 422E.3, subsection 4, Code 1999, is
  1  2 amended to read as follows:
  1  3    4.  The director of revenue and finance shall credit tax
  1  4 receipts and interest and penalties from the local sales and
  1  5 services tax for school infrastructure purposes to an account
  1  6 within the county's local sales and services tax fund, as
  1  7 created in section 422B.10, subsection 1, maintained in the
  1  8 name of the school district or school districts located within
  1  9 entitled to receive moneys from the receipts collected in the
  1 10 county.  If the director is unable to determine from which
  1 11 county any of the receipts were collected, those receipts
  1 12 shall be allocated among the possible counties based on
  1 13 allocation rules adopted by the director.
  1 14    Sec. 2.  Section 422E.3, subsection 5, Code 1999, is
  1 15 amended by striking the subsection and inserting in lieu
  1 16 thereof the following:
  1 17    5.  a.  Tax receipts collected on or after January 1, 2000,
  1 18 shall be distributed on a quarterly basis as follows:
  1 19    (1)  The county percentage of total tax receipts collected
  1 20 during the calendar quarter in the county shall be distributed
  1 21 to school districts located in the county as provided in
  1 22 subparagraph (3).
  1 23    (2)  The noncounty percentage of total tax receipts
  1 24 collected during the calendar quarter in the county shall be
  1 25 distributed to school districts located outside of the county
  1 26 as provided in subparagraph (3).
  1 27    (3)  Each school district shall receive a portion of the
  1 28 tax receipts to be distributed in the county or outside of the
  1 29 county, as the case may be, equal to the quotient of the
  1 30 credit card sales attributed to the school district divided by
  1 31 the total credit card sales in the county or outside of the
  1 32 county, as the case may be.  "Credit card sales attributed to
  1 33 the school district" is the sum of the credit card sales from
  1 34 cards which identify the cardholder by the school district
  1 35 number plus the credit card sales from cards which do not
  2  1 identify the cardholder by school district number but which
  2  2 identify the cardholder by a zip code number of a zip code
  2  3 area located within the school district.  A zip code area
  2  4 which contains parts of more than one school district is
  2  5 considered to be located within the school district which
  2  6 contains a larger area of the zip code area than any of the
  2  7 other school districts.
  2  8    b.  Tax receipts collected in a calendar quarter shall be
  2  9 distributed to the appropriate school district by the
  2 10 fifteenth of the second month following the end of the
  2 11 calendar quarter.
  2 12    Any tax receipts which have not been designated to be
  2 13 distributed to a school district in the state shall be
  2 14 available to cover the administrative expenses incurred by the
  2 15 department of revenue and finance.
  2 16    c.  For purposes of this subsection:
  2 17    (1)  "County percentage" means the percentage of all
  2 18 taxable purchases in the county paid for with credit cards by
  2 19 purchasers with zip code addresses located in the county.
  2 20    (2)  "Noncounty percentage" means the percentage of all
  2 21 taxable purchases in the county paid for with credit cards by
  2 22 purchasers with zip code addresses located outside of the
  2 23 county.
  2 24    d.  The percentages in paragraph "c" shall be determined
  2 25 for the designated calendar quarters as follows:
  2 26    (1)  For the calendar quarter beginning January 1, 2000,
  2 27 the appropriate percentages shall be based on such percentages
  2 28 computed for the entire previous calendar quarter.
  2 29    (2)  For the calendar quarter beginning April 1, 2000, the
  2 30 appropriate percentages shall be based on the average of such
  2 31 percentages computed for each of the entire previous two
  2 32 calendar quarters.
  2 33    (3)  For the calendar quarter beginning July 1, 2000, the
  2 34 appropriate percentages shall be based on the average of such
  2 35 percentages computed for each of the entire previous three
  3  1 calendar quarters.
  3  2    (4)  For the calendar quarter beginning October 1, 2000,
  3  3 and succeeding calendar quarters, the appropriate percentages
  3  4 shall be based on the average of such percentages computed for
  3  5 each of the entire previous four calendar quarters.
  3  6    Sec. 3.  Section 422E.3, Code 1999, is amended by adding
  3  7 the following new subsections:
  3  8    NEW SUBSECTION.  5A.  Credit card issuers with credit
  3  9 cardholders in this state shall assist the department of
  3 10 revenue and finance in the distribution of tax receipts by
  3 11 tabulating or providing tabulation through retailers or
  3 12 database intermediaries that provide tabulation to retailers
  3 13 of the total amount of taxable credit card sales made in the
  3 14 county that has imposed a local sales and services tax under
  3 15 this chapter.  The figures shall be broken down by the zip
  3 16 code numbers of the purchasers and by the school district
  3 17 numbers, to the extent available.
  3 18    When renewing credit cards after January 1, 2000, credit
  3 19 card issuers shall provide as part of the identification of
  3 20 the credit cardholder the school district number of the school
  3 21 district where the holder resides.  By October 1, 2002, credit
  3 22 cardholders with residences in this state shall be identified
  3 23 not only by zip code numbers as part of their addresses but
  3 24 also by the school district number of the school district in
  3 25 which they reside.
  3 26    NEW SUBSECTION.  5B.  Beginning January 1, 2003, for
  3 27 distributions made after that date, the department of revenue
  3 28 and finance shall adjust the distribution formula under
  3 29 subsection 5 to reflect the general use of school district
  3 30 numbers as part of the credit cardholders' addresses.  The
  3 31 department shall continue to make use of zip code numbers to
  3 32 the extent those addresses do not contain school district
  3 33 numbers.
  3 34    Sec. 4.  This Act takes effect January 1, 2000, for tax
  3 35 receipts collected on or after January 1, 2000, and for
  4  1 distributions of those tax receipts made on or after April 1,
  4  2 2000.  
  4  3                           EXPLANATION
  4  4    This bill provides for the distribution of the local sales
  4  5 and services tax for school infrastructure purposes to be made
  4  6 based upon the zip code number of the addresses of the
  4  7 purchasers of taxable goods in counties that have imposed the
  4  8 tax.  This is done by determining the total amount of taxable
  4  9 sales in a county with the local tax which is paid for by
  4 10 credit cards.  This amount is divided into the amount of such
  4 11 sales which are made by purchasers with zip codes located in
  4 12 the county.  The resulting percentage multiplied by the total
  4 13 sales made in the county equals the amount of the tax receipts
  4 14 to be distributed to schools located in the county.  The total
  4 15 taxable sales in the county divided into the taxable credit
  4 16 card sales made by purchasers with zip codes located outside
  4 17 of the county determines the percentage of total sales in the
  4 18 county which will be distributed to school districts located
  4 19 outside of the county.  Any excess tax receipts may be used
  4 20 for administration expenses.  Within three years, the above
  4 21 distribution formula will be based upon school district
  4 22 numbers.
  4 23    The bill takes effect January 1, 2000, for the distribution
  4 24 of tax receipts made on or after April 1, 2000.  
  4 25 LSB 2257XS 78
  4 26 mg/sc/14
     

Text: SF00416                           Text: SF00418
Text: SF00400 - SF00499                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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