Text: HF00659 Text: HF00661 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 293.1 SCHOOL DISTRICT SALES AND 1 2 USE TAX FUND. 1 3 1. A school district sales and use tax fund is created as 1 4 a separate and distinct fund in the state treasury under the 1 5 control of the department of revenue and finance. Moneys in 1 6 the fund include revenues credited to the fund pursuant to 1 7 section 422.69, subsection 2, and section 423.24, 1 8 appropriations made to the fund and other moneys deposited 1 9 into the fund. The moneys credited in a fiscal year to the 1 10 fund shall be distributed as follows: 1 11 a. A school district located in whole or in part in a 1 12 county that had in effect on March 31, 2001, the local sales 1 13 and services tax for school infrastructure purposes under 1 14 chapter 422E shall receive an amount equal to its guaranteed 1 15 school infrastructure amount as calculated under subsection 2 1 16 if the board of directors notifies the director of revenue and 1 17 finance that the school district wants to receive its 1 18 guaranteed school infrastructure amount. The notification 1 19 shall be provided by July 1, 2001. If notification is not 1 20 received by July 1, 2001, the school district shall receive 1 21 moneys pursuant to paragraph "b". Nothing in this chapter 1 22 shall prevent a school district from using its guaranteed 1 23 school infrastructure amount to pay principle and interest on 1 24 obligations issued pursuant to section 422E.4. 1 25 A school district receiving moneys pursuant to this 1 26 paragraph shall cease to receive its guaranteed school 1 27 infrastructure amount and shall receive moneys pursuant to 1 28 paragraph "b" starting with the fiscal year immediately 1 29 following the fiscal year in which occurs the end of the 1 30 original ten-year period or the date listed on the original 1 31 ballot proposition, whichever is the earlier, as provided in 1 32 chapter 422E. A school district may adopt a plan, as provided 1 33 in section 293.2, subsection 2, to anticipate moneys it will 1 34 receive pursuant to paragraph "b". A school district 1 35 receiving moneys pursuant to this paragraph may elect to 2 1 receive moneys pursuant to paragraph "b" by providing 2 2 notification to receive moneys pursuant to paragraph "b" to 2 3 the director of revenue and finance and the director of the 2 4 department of management by February 15 preceding the fiscal 2 5 year for which the election will apply. Once a school 2 6 district makes this election it is irrevocable. 2 7 b. Moneys remaining after computations made pursuant to 2 8 paragraph "a" shall be distributed to school districts not 2 9 receiving moneys under paragraph "a" on a per student basis 2 10 calculated by the director of revenue and finance by dividing 2 11 the moneys available during the fiscal year by the combined 2 12 actual enrollment for all school districts receiving 2 13 distributions under this paragraph. 2 14 The combined actual enrollment for school districts, for 2 15 purposes of this paragraph, shall be calculated by adding 2 16 together the actual enrollment for each school district 2 17 receiving distributions under this paragraph as determined by 2 18 the department of management based on the actual enrollment 2 19 figures reported by October 1 to the department of management 2 20 by the department of education pursuant to section 257.6, 2 21 subsection 1. The combined actual enrollment count shall be 2 22 forwarded to the director of revenue and finance by March 1, 2 23 annually, for purposes of supplying estimated tax payment 2 24 figures and making estimated tax payments pursuant to 2 25 subsection 3 for the following fiscal year. 2 26 2. a. For purposes of distributions under subsection 1, 2 27 paragraph "a", the school district's guaranteed school 2 28 infrastructure amount shall be calculated according to the 2 29 following formula: 2 30 The district's guaranteed school infrastructure amount 2 31 equals the product of the county guaranteed school 2 32 infrastructure amount times the district's county actual 2 33 enrollment divided by the county combined actual enrollment. 2 34 b. For purposes of the formula in paragraph "a": 2 35 (1) "Base year" means the fiscal year beginning July 1, 3 1 2000. 3 2 (2) "Base year county taxable sales percentage" means the 3 3 percentage that the taxable sales in the county during the 3 4 base year is of the total state taxable sales during the base 3 5 year. 3 6 (3) "County combined actual enrollment" means the actual 3 7 enrollment figures determined by the department of management 3 8 for the county based on the actual enrollment figures reported 3 9 by October 1 to the department of management by the department 3 10 of education pursuant to section 257.6, subsection 1. 3 11 (4) "County guaranteed school infrastructure amount" means 3 12 an amount equal to the product of the county's chapter 422E 3 13 proportionate share times the amount deposited in the school 3 14 district sales and use tax fund for the current year times the 3 15 current year county taxable sales percentage divided by the 3 16 base year county taxable sales percentage. 3 17 (5) "County's chapter 422E proportionate share" means the 3 18 percentage that the annualized revenues received in the county 3 19 under chapter 422E for the base year is of one-fifth of the 3 20 total state sales and use tax revenues collected for deposit 3 21 into the general fund of the state for the base year. 3 22 (6) "Current year" means the fiscal year for which 3 23 distributions under this section are being made. 3 24 (7) "Current year county taxable sales percentage" means 3 25 the percentage that the taxable sales in the county during the 3 26 current fiscal year is of the total state taxable sales during 3 27 the current fiscal year. 3 28 (8) "District's county actual enrollment" means the actual 3 29 enrollment of the school district that attends school in the 3 30 county for which the county combined actual enrollment is 3 31 determined. 3 32 (9) "Taxable sales" means sales subject to the state sales 3 33 and services tax under chapter 422, division IV. 3 34 3. a. The director of revenue and finance within fifteen 3 35 days of the beginning of each fiscal year shall send to each 4 1 school district an estimate of the amount of tax moneys each 4 2 school district will receive for the year and for each quarter 4 3 of the year. At the end of each quarter, the director may 4 4 revise the estimates for the year and remaining quarters. 4 5 b. The director shall remit ninety-five percent of the 4 6 estimated tax receipts for the school district to the school 4 7 district on or before September 30 of the fiscal year and on 4 8 or before the last day of each following quarter. 4 9 c. The director shall remit a final payment of the 4 10 remainder of tax moneys due for the fiscal year before 4 11 November 10 of the next fiscal year. If an overpayment has 4 12 resulted during the previous fiscal year, the November payment 4 13 shall be adjusted to reflect any overpayment. 4 14 d. If the distributions are to school districts described 4 15 in subsection 1, paragraph "a", the payments to these school 4 16 districts shall be done on a monthly basis beginning with the 4 17 month of August. 4 18 Sec. 2. NEW SECTION. 293.2 USE OF SCHOOL DISTRICT SALES 4 19 AND USE TAX FUND MONEYS. 4 20 1. A school district receiving moneys from the school 4 21 district sales and use tax fund under section 293.1, 4 22 subsection 1, paragraph "a", shall use the moneys as provided 4 23 on the original ballot proposition pursuant to chapter 422E, 4 24 for the payment of principal and interest on general 4 25 obligation bonds issued pursuant to chapter 296, or section 4 26 298.20 or loan agreements under section 297.36, for payments 4 27 made pursuant to lease or lease-purchase agreements, or for 4 28 payment of principal and interest on bonds issued under 4 29 sections 293.3 and 422E.4. 4 30 2. a. Moneys received by a school district from the 4 31 school district sales and use tax fund under section 293.1, 4 32 subsection 1, paragraph "b", shall be spent for infrastructure 4 33 purposes only according to a plan developed by the board of 4 34 directors. The plan may apply to more than one fiscal year. 4 35 Prior to adoption of the plan, the board of directors shall 5 1 hold a public hearing on the question of approval of the 5 2 proposed plan. The board shall set forth its proposal and 5 3 shall publish the notice of the time and place of a public 5 4 hearing on the proposed plan. Notice of the time and place of 5 5 the public hearing shall be published not less than ten nor 5 6 more than twenty days before the public hearing in a newspaper 5 7 which is a newspaper of general circulation in the school 5 8 district. At the hearing, or no later than thirty days after 5 9 the date of the hearing, the board shall take action to adopt 5 10 the proposed plan. 5 11 b. If the board adopts the plan, moneys received shall be 5 12 used according to the plan unless within twenty-eight days 5 13 following the action of the board, the secretary of the board 5 14 receives a petition containing signatures of registered voters 5 15 equal in number to five percent of the voters in the school 5 16 district who voted at the last general election, asking that 5 17 an election be called to approve or disapprove the action of 5 18 the board. The board shall either rescind its action or 5 19 direct the county commissioner of elections to submit the 5 20 question to the registered voters of the school district at 5 21 the next following regular school election or a special 5 22 election. If a majority of those voting on the question at 5 23 the election favors disapproval of the action of the board, 5 24 the district shall use the moneys received as provided in 5 25 paragraph "c" for the fiscal year. 5 26 At the expiration of the twenty-eight day period, if no 5 27 petition is filed, the board shall use the moneys received 5 28 according to the plan for the duration of the plan. However, 5 29 the board may, at anytime, expend a greater share of moneys 5 30 received for property tax relief than otherwise specified in 5 31 the plan. 5 32 c. If an election is held and the plan is disapproved, as 5 33 provided in paragraph "b", or if a plan is not approved by the 5 34 board, moneys received by a school district shall be used for 5 35 the fiscal year to reduce the following levies in the 6 1 following order: 6 2 (1) Bond levies under sections 298.18 and 298.18A and 6 3 other debt levies until the moneys received or the levies are 6 4 reduced to zero. 6 5 (2) The physical plant and equipment levy under section 6 6 298.2, until the moneys received or the levy is reduced to 6 7 zero. 6 8 (3) The schoolhouse tax levy under section 278.1, 6 9 subsection 7, Code 1989, until the moneys received or the levy 6 10 is reduced to zero. 6 11 Any money remaining after the reduction of the levies 6 12 specified in this paragraph may be used for any lawful 6 13 infrastructure purpose of the school district. 6 14 d. For purposes of this subsection, "infrastructure 6 15 purposes" means those purposes for which a school district is 6 16 authorized to contract indebtedness and issue general 6 17 obligation bonds under chapter 296 or to expend tax revenues 6 18 under section 298.3, the payment of principal and interest on 6 19 general obligation bonds issued under chapter 296 or section 6 20 298.20 or loan agreements under section 297.36, payments made 6 21 pursuant to a lease or lease-purchase agreement, or the 6 22 payment of principal and interest on bonds issued under 6 23 section 293.3 or 422E.4. 6 24 Sec. 3. NEW SECTION. 293.3 BONDING. 6 25 A school district may anticipate the amount of moneys to be 6 26 received pursuant to section 293.1 as provided in this 6 27 section. 6 28 The board of directors of a school district is authorized 6 29 to issue negotiable, interest-bearing school bonds, without 6 30 election, and utilize tax receipts derived from the school 6 31 district sales and use tax fund for principal and interest 6 32 repayment. Proceeds of the bonds issued pursuant to this 6 33 section shall be utilized solely for school infrastructure 6 34 needs as school infrastructure is defined in section 293.2, 6 35 subsection 2. 7 1 Bonds issued under this section may be sold at public sale 7 2 as provided in chapter 75. Notice shall be given and a 7 3 hearing shall be held as provided in section 73A.12. Bonds 7 4 may bear dates, bear interest at rates not exceeding that 7 5 permitted by chapter 74A, mature in one or more installments, 7 6 be in either coupon or registered form, carry registration and 7 7 conversion privileges, be payable as to principal and interest 7 8 at times and places, be subject to terms of redemption prior 7 9 to maturity with or without premium, and be in one or more 7 10 denominations, all as provided by the resolution of the board 7 11 of directors authorizing their issuance. The resolution may 7 12 also prescribe additional provisions, terms, conditions, and 7 13 covenants which the board of directors deems advisable, 7 14 including provisions for creating and maintaining reserve 7 15 funds, the issuance of additional bonds ranking on a parity 7 16 with such bonds and additional bonds junior and subordinate to 7 17 such bonds, and that such bonds shall rank on a parity with or 7 18 be junior and subordinate to any bonds which may be then 7 19 outstanding. Bonds may be issued to refund outstanding and 7 20 previously issued bonds under this section. Bonds are a 7 21 contract between the school district and holders, and the 7 22 resolution issuing the bonds and pledging tax revenues to be 7 23 received from the school district sales and use tax fund to 7 24 the payment of principal and interest on the bonds is a part 7 25 of the contract. Bonds issued pursuant to this section shall 7 26 not constitute indebtedness within the meaning of any 7 27 constitutional or statutory debt limitation or restriction, 7 28 and shall not be subject to any other law relating to the 7 29 authorization, issuance, or sale of bonds. 7 30 A school district shall be authorized to enter into a 7 31 chapter 28E agreement with one or more cities or a county 7 32 whose boundaries encompass all or a part of the area of the 7 33 school district. A city or cities entering into a chapter 28E 7 34 agreement shall be authorized to expend its designated portion 7 35 of the tax revenues to be received from the school district 8 1 sales and use tax fund for any valid purpose permitted in this 8 2 chapter or authorized by the governing body of the city. A 8 3 county entering into a chapter 28E agreement with a school 8 4 district shall be authorized to expend its designated portion 8 5 of the tax revenues to be received from the school district 8 6 sales and use tax fund to provide property tax relief within 8 7 the boundaries of the school district located in the county. 8 8 A school district is also authorized to enter into a chapter 8 9 28E agreement with another school district which is located 8 10 partially or entirely in or is contiguous to the county. The 8 11 school district shall only expend its designated portion of 8 12 tax revenues to be received from the school district sales and 8 13 use tax fund. 8 14 The governing body of a city may authorize the issuance of 8 15 bonds which are payable from its designated portion of the tax 8 16 revenues to be received from the school district sales and use 8 17 tax fund, and not from property tax, by following the 8 18 authorization procedures set forth for cities in section 8 19 384.83. A city may pledge irrevocably any amount derived from 8 20 its designated portions of the tax revenues to be received 8 21 from the school district sales and use tax fund to the support 8 22 or payment of such bonds. 8 23 Sec. 4. Section 298.18, unnumbered paragraph 4, Code 2001, 8 24 is amended to read as follows: 8 25 The amount estimated and certified to apply on principal 8 26 and interest for any one year may exceed two dollars and 8 27 seventy cents per thousand dollars of assessed value by the 8 28 amount approved by the voters of the school corporation, but 8 29 not exceeding four dollars and five cents per thousand of the 8 30 assessed value of the taxable property within any school 8 31 corporation, provided that the qualified voters of such school 8 32 corporation have first approved such increased amount at a 8 33 special election, whichmay bewas heldat the same time as8 34the regular school electionprior to July 1, 2001.The8 35proposition submitted to the voters at such special election9 1shall be in substantially the following form:9 2 Sec. 5. Section 298.18, unnumbered paragraphs 5 and 6, 9 3 Code 2001, are amended by striking the unnumbered paragraphs. 9 4 Sec. 6. Section 298.18, unnumbered paragraph 8, Code 2001, 9 5 is amended to read as follows: 9 6 The ability of a school corporation to exceed two dollars 9 7 and seventy cents per thousand dollars of assessed value to 9 8 service principal and interest payments on bonded indebtedness 9 9 is limited and conferred only to those school corporations 9 10 engaged in the administration of elementary and secondary 9 11 education and which have voted to exceed that levy limitation 9 12 prior to July 1, 2001. 9 13 Sec. 7. Section 422.43, subsections 1, 2, 4, 5, 6, 7, 10, 9 14 and 12, Code 2001, are amended to read as follows: 9 15 1. There is imposed a tax offivesix percent upon the 9 16 gross receipts from all sales of tangible personal property, 9 17 consisting of goods, wares, or merchandise, except as 9 18 otherwise provided in this division, sold at retail in the 9 19 state to consumers or users; a like rate of tax upon the gross 9 20 receipts from the sales, furnishing, or service of gas, 9 21 electricity, water, heat, pay television service, and 9 22 communication service, including the gross receipts from such 9 23 sales by any municipal corporation or joint water utility 9 24 furnishing gas, electricity, water, heat, pay television 9 25 service, and communication service to the public in its 9 26 proprietary capacity, except as otherwise provided in this 9 27 division, when sold at retail in the state to consumers or 9 28 users; a like rate of tax upon the gross receipts from all 9 29 sales of tickets or admissions to places of amusement, fairs, 9 30 and athletic events except those of elementary and secondary 9 31 educational institutions; a like rate of tax on the gross 9 32 receipts from an entry fee or like charge imposed solely for 9 33 the privilege of participating in an activity at a place of 9 34 amusement, fair, or athletic event unless the gross receipts 9 35 from the sales of tickets or admissions charges for observing 10 1 the same activity are taxable under this division; and a like 10 2 rate of tax upon that part of private club membership fees or 10 3 charges paid for the privilege of participating in any 10 4 athletic sports provided club members. 10 5 2. There is imposed a tax offivesix percent upon the 10 6 gross receipts derived from the operation of all forms of 10 7 amusement devices and games of skill, games of chance, 10 8 raffles, and bingo games as defined in chapter 99B, operated 10 9 or conducted within the state, the tax to be collected from 10 10 the operator in the same manner as for the collection of taxes 10 11 upon the gross receipts of tickets or admission as provided in 10 12 this section. The tax shall also be imposed upon the gross 10 13 receipts derived from the sale of lottery tickets or shares 10 14 pursuant to chapter 99E. The tax on the lottery tickets or 10 15 shares shall be included in the sales price and distributed to 10 16 the general fund as provided in section 99E.10. 10 17 4. There is imposed a tax offivesix percent upon the 10 18 gross receipts from the sales of engraving, photography, 10 19 retouching, printing, and binding services. For the purpose 10 20 of this division, the sales of engraving, photography, 10 21 retouching, printing, and binding services are sales of 10 22 tangible property. 10 23 5. There is imposed a tax offivesix percent upon the 10 24 gross receipts from the sales of vulcanizing, recapping, and 10 25 retreading services. For the purpose of this division, the 10 26 sales of vulcanizing, recapping, and retreading services are 10 27 sales of tangible property. 10 28 6. There is imposed a tax offivesix percent upon the 10 29 gross receipts from the sales of optional service or warranty 10 30 contracts, except residential service contracts regulated 10 31 under chapter 523C, which provide for the furnishing of labor 10 32 and materials and require the furnishing of any taxable 10 33 service enumerated under this section. The gross receipts are 10 34 subject to tax even if some of the services furnished are not 10 35 enumerated under this section. For the purpose of this 11 1 division, the sale of an optional service or warranty 11 2 contract, other than a residential service contract regulated 11 3 under chapter 523C, is a sale of tangible personal property. 11 4 Additional sales, services, or use taxes shall not be levied 11 5 on services, parts, or labor provided under optional service 11 6 or warranty contracts which are subject to tax under this 11 7 section. 11 8 If the optional service or warranty contract is a computer 11 9 software maintenance or support service contract and there is 11 10 no separately stated fee for the taxable personal property or 11 11 for the nontaxable service, the tax offivesix percent 11 12 imposed by this subsection shall be imposed on fifty percent 11 13 of the gross receipts from the sale of such contract. If the 11 14 contract provides for technical support services only, no tax 11 15 shall be imposed under this subsection. The provisions of 11 16 this subsection also apply to the tax imposed by chapter 423. 11 17 7. There is imposed a tax offivesix percent upon the 11 18 gross receipts from the renting of rooms, apartments, or 11 19 sleeping quarters in a hotel, motel, inn, public lodging 11 20 house, rooming house, mobile home which is tangible personal 11 21 property, or tourist court, or in any place where sleeping 11 22 accommodations are furnished to transient guests for rent, 11 23 whether with or without meals. "Renting" and "rent" include 11 24 any kind of direct or indirect charge for such rooms, 11 25 apartments, or sleeping quarters, or their use. For the 11 26 purposes of this division, such renting is regarded as a sale 11 27 of tangible personal property at retail. However, this tax 11 28 does not apply to the gross receipts from the renting of a 11 29 room, apartment, or sleeping quarters while rented by the same 11 30 person for a period of more than thirty-one consecutive days. 11 31 10. There is imposed a tax offivesix percent upon the 11 32 gross receipts from the rendering, furnishing, or performing 11 33 of services as defined in section 422.42. 11 34 12. A tax offivesix percent is imposed upon the gross 11 35 receipts from the sales of prepaid telephone calling cards and 12 1 prepaid authorization numbers. For the purpose of this 12 2 division, the sales of prepaid telephone calling cards and 12 3 prepaid authorization numbers are sales of tangible personal 12 4 property. 12 5 Sec. 8. Section 422.43, subsection 13, paragraph a, 12 6 unnumbered paragraph 1, Code 2001, is amended to read as 12 7 follows: 12 8 A tax offivesix percent is imposed upon the gross 12 9 receipts from the sales, furnishing, or service of solid waste 12 10 collection and disposal service. 12 11 Sec. 9. Section 422.47, subsection 2, Code 2001, is 12 12 amended to read as follows: 12 13 2. Construction contractors may make application to the 12 14 department for a refund of the additional one percent tax paid 12 15 under this division or the additional one percent tax paid 12 16 under chapter 423 by reason of the increase in the tax from 12 17four tofive to six percent for taxes paid on goods, wares, or 12 18 merchandise under the following conditions: 12 19 a. The goods, wares, or merchandise are incorporated into 12 20 an improvement to real estate in fulfillment of a written 12 21 contract fully executed prior to July 1,19922001. The 12 22 refund shall not apply to equipment transferred in fulfillment 12 23 of a mixed construction contract. 12 24 b. The contractor has paid to the department or to a 12 25 retailer the fullfivesix percent tax. 12 26 c. The claim is filed on forms provided by the department 12 27 and is filed within one year of the date the tax is paid. 12 28 A contractor who makes an erroneous application for refund 12 29 shall be liable for payment of the excess refund paid plus 12 30 interest at the rate in effect under section 421.7. In 12 31 addition, a contractor who willfully makes a false application 12 32 for refund is guilty of a simple misdemeanor and is liable for 12 33 a penalty equal to fifty percent of the excess refund claimed. 12 34 Excess refunds, penalties, and interest due under this 12 35 subsection may be enforced and collected in the same manner as 13 1 the tax imposed by this division. 13 2 Sec. 10. Section 422.69, subsection 2, Code 2001, is 13 3 amended to read as follows: 13 4 2. a.UnlessExcept as provided in paragraph "b", or as 13 5 otherwise provided, the fees, taxes, interest and penalties 13 6 collected under this chapter shall be credited to the general 13 7 fund. 13 8 b. One-sixth of the fees, taxes, interest, and penalties 13 9 collected pursuant to division IV shall be credited to the 13 10 school district sales and use tax fund created in section 13 11 293.1. 13 12 Sec. 11. Section 422E.1, Code 2001, is amended by adding 13 13 the following new subsection: 13 14 NEW SUBSECTION. 4. a. This chapter does not apply to any 13 15 county after the effective date of this Act. 13 16 b. In the case of a county that has in effect on March 31, 13 17 2001, a local sales and services tax for school infrastructure 13 18 purposes, the increase in the state sales and services tax 13 19 under chapter 422, division IV, from five percent to six 13 20 percent shall replace the county's local sales and services 13 21 tax for school infrastructure purposes and to this extent the 13 22 local sales and services tax for school infrastructure 13 23 purposes is repealed. 13 24 Sec. 12. Section 423.2, Code 2001, is amended to read as 13 25 follows: 13 26 423.2 IMPOSITION OF TAX. 13 27 An excise tax is imposed on the use in this state of 13 28 tangible personal property, including aircraft subject to 13 29 registration under section 328.20, purchased for use in this 13 30 state, at the rate offivesix percent of the purchase price 13 31 of the property. An excise tax is imposed on the use of 13 32 manufactured housing in this state at the rate offivesix 13 33 percent of the purchase price if the manufactured housing is 13 34 sold in the form of tangible personal property and at the rate 13 35 offivesix percent of the installed purchase price if the 14 1 manufactured housing is sold in the form of realty. An excise 14 2 tax is imposed on the use in this state of vehicles subject to 14 3 registration or subject only to the issuance of a certificate 14 4 of title at the rate of five percent. An excise tax is 14 5 imposed on the use of leased vehicles at the rate of five 14 6 percent of the amount otherwise subject to tax as calculated 14 7 pursuant to section 423.7A. The excise tax is imposed upon 14 8 every person using the property within this state until the 14 9 tax has been paid directly to the county treasurer or the 14 10 state department of transportation, to a retailer, or to the 14 11 department. An excise tax is imposed on the use in this state 14 12 of services enumerated in section 422.43 at the rate offive14 13 six percent. This tax is applicable where services are 14 14 rendered, furnished, or performed in this state or where the 14 15 product or result of the service is used in this state. This 14 16 tax is imposed on every person using the services or the 14 17 product of the services in this state until the user has paid 14 18 the tax either to an Iowa use tax permit holder or to the 14 19 department. 14 20 Sec. 13. Section 423.24, Code 2001, is amended by adding 14 21 the following new subsection: 14 22 NEW SUBSECTION. 2A. One-sixth of all other revenue 14 23 arising under the operation of this chapter shall be credited 14 24 to the school district sales and use tax fund created in 14 25 section 293.1. 14 26 Sec. 14. Section 423.24, subsection 3, Code 2001, is 14 27 amended to read as follows: 14 28 3. All other revenue arising under the operation of this 14 29 chapter not credited as specified in subsections 1, 2, and 2A 14 30 shall be credited to the general fund of the state. 14 31 Sec. 15. APPLICABILITY. This section applies in regard to 14 32 the increase in the state sales and use taxes from five to six 14 33 percent. The six percent rate applies to all sales of taxable 14 34 personal property, consisting of goods, wares, or merchandise 14 35 if delivery occurs on or after July 1, 2001. The six percent 15 1 use tax rate applies to the use of property when the first 15 2 taxable use in this state occurs on or after July 1, 2001. 15 3 The six percent rate applies to the gross receipts from the 15 4 sale, furnishing, or service of gas, electricity, water, heat, 15 5 pay television service, and communication service if the date 15 6 of billing the customer is on or after July 1, 2001. In the 15 7 case of a service contract entered into prior to July 1, 2001, 15 8 which contract calls for periodic payments, the six percent 15 9 rate applies to those payments made or due on or after July 1, 15 10 2001. This periodic payment applies, but is not limited to, 15 11 tickets or admissions, private club membership fees, sources 15 12 of amusement, equipment rental, dry cleaning, reducing salons, 15 13 dance schools, and all other services subject to tax, except 15 14 the aforementioned utility services which are subject to a 15 15 special transitional rule. Unlike periodic payments under 15 16 service contracts, installment sales of goods, wares, and 15 17 merchandise are subject to the full amount of sales or use tax 15 18 when the sales contract is entered into or the property is 15 19 first used in Iowa. 15 20 Sec. 16. Sections 1 and 2 of this Act, being deemed of 15 21 immediate importance, take effect upon enactment. 15 22 EXPLANATION 15 23 This bill increases state sales and use tax rates from 5 15 24 percent to 6 percent, except for motor vehicles where the rate 15 25 remains at 5 percent. The increased revenues are deposited 15 26 into a school district sales and use tax fund to be 15 27 distributed to school districts throughout the state to be 15 28 used for infrastructure or property tax relief purposes. 15 29 Because the increase in the state sales tax rate replaces the 15 30 local option sales and services tax for school infrastructure 15 31 purposes, those school districts that were receiving revenues 15 32 from the local option tax may continue to receive, according 15 33 to a formula, revenues from the school district sales and use 15 34 tax fund in an amount that approximates what those districts 15 35 would have received under the local option tax. These 16 1 districts will receive their distributions first. The 16 2 remaining moneys will be distributed to the other school 16 3 districts on a per pupil basis. School districts that were 16 4 receiving the local option tax may elect to receive the 16 5 distributions on a per pupil basis rather than pursuant to the 16 6 formula. 16 7 Revenues received by the school districts according to the 16 8 formula must be used for the purposes specified in the ballot 16 9 when the local option tax was first passed or to pay principal 16 10 and interest on general obligation bonds, lease-purchase 16 11 agreements, or other loan agreements. Other districts will 16 12 spend the revenues according to an infrastructure plan 16 13 developed by the board of directors of the school district. 16 14 If a plan is not developed by the board or the plan is not 16 15 developed at a reverse referendum, then the revenues will be 16 16 used for property tax relief by lowering the debt service 16 17 levies, the physical plant and equipment levy, the schoolhouse 16 18 tax levy or for infrastructure purposes, in that order. Bonds 16 19 may be issued by a school district, without an election, in 16 20 anticipation of the distributions the district will receive 16 21 from the school district sales and use tax fund. 16 22 The school district debt service levy is also reduced from 16 23 a maximum $4.05 per $1,000 of taxable value to $2.70 per 16 24 $1,000 of taxable value. However, if the voters in the 16 25 district have voted to exceed the $2.70 per $1,000 of taxable 16 26 value levy amount prior to July 1, 2001, then the maximum levy 16 27 may remain at $4.05 per $1,000 of taxable value until the 16 28 bonds are retired. 16 29 The bill has some effective date provisions. However, the 16 30 sales and use tax rates are increased as of July 1, 2001. 16 31 LSB 1689HV 79 16 32 mg/cf/24
Text: HF00659 Text: HF00661 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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