Text: HF00570 Text: HF00572 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422E.1, subsection 3, Code 2003, is
1 2 amended by striking the subsection and inserting in lieu
1 3 thereof the following:
1 4 3. Local sales and services tax moneys received by a
1 5 county for school infrastructure purposes pursuant to this
1 6 chapter shall be utilized for school infrastructure needs.
1 7 For purposes of this chapter, "school infrastructure purposes"
1 8 means those purposes for which a school district is authorized
1 9 to contract indebtedness and issue general obligation bonds
1 10 under chapter 296 or to expend tax revenues under section
1 11 298.3, the payment of principal and interest on general
1 12 obligation bonds issued under chapter 296 or section 298.20 or
1 13 loan agreements under section 297.36, for carrying on public
1 14 educational and recreational activities pursuant to chapter
1 15 300, payments made pursuant to a lease or lease-purchase
1 16 agreement, or the payment of principal and interest on and the
1 17 retirement of bonds issued under section 422E.4.
1 18 Sec. 2. Section 422E.1, Code 2003, is amended by adding
1 19 the following new subsection:
1 20 NEW SUBSECTION. 4. a. This chapter does not apply to any
1 21 county on or after April 1, 2003, except to the extent
1 22 provided in paragraph "b".
1 23 b. A county that has voted on and approved prior to April
1 24 1, 2003, a local sales and services tax for school
1 25 infrastructure purposes shall impose the tax until the end of
1 26 the ten-year period or the date for repeal specified on the
1 27 ballot. A county that has published notice of the ballot
1 28 proposition prior to April 1, 2003, may hold the election and
1 29 if a majority of those voting on the question favor the
1 30 imposition, the county shall impose the local sales and
1 31 services tax for school infrastructure purposes until the end
1 32 of the ten-year period or the date for repeal specified on the
1 33 ballot.
1 34 Sec. 3. NEW SECTION. 422F.1 AUTHORIZATION – RATE OF TAX
1 35 – USE OF REVENUES.
2 1 1. A local option school infrastructure sales tax may be
2 2 imposed by a county on behalf of school districts as provided
2 3 in this chapter.
2 4 If a local option school infrastructure sales tax is
2 5 imposed by a county pursuant to this chapter, a local excise
2 6 tax for school infrastructure at the same rate shall be
2 7 imposed by the county on the purchase price of natural gas,
2 8 natural gas service, electricity, or electric service subject
2 9 to tax under chapter 423 and not exempted from tax by any
2 10 provision of chapter 423. The local excise tax for school
2 11 infrastructure is applicable only to the use of natural gas,
2 12 natural gas service, electricity, or electric service within
2 13 the incorporated and unincorporated areas of the county where
2 14 it is imposed and, except as otherwise provided in this
2 15 chapter, shall be collected and administered in the same
2 16 manner as the local option school infrastructure sales tax.
2 17 For purposes of this chapter, "local option school
2 18 infrastructure sales tax" shall also include the local excise
2 19 tax for school infrastructure.
2 20 2. The maximum rate of tax shall be one percent. The tax
2 21 shall be imposed without regard to any other local sales and
2 22 services tax authorized in chapter 422B, and is repealed at
2 23 the expiration of a period of ten years of imposition or a
2 24 shorter period as provided in the ballot proposition.
2 25 However, all local option school infrastructure sales taxes
2 26 are repealed December 31, 2022. The tax is in lieu of the
2 27 local sales and services tax for school infrastructure
2 28 authorized in chapter 422E.
2 29 3. Local option school infrastructure sales tax moneys
2 30 received by a county pursuant to this chapter shall be
2 31 utilized for school infrastructure purposes or property tax
2 32 relief. For purposes of this chapter, "school infrastructure
2 33 purposes" means those purposes for which a school district is
2 34 authorized to contract indebtedness and issue general
2 35 obligation bonds under chapter 296 or to expend tax revenues
3 1 under section 298.3, the payment of principal and interest on
3 2 general obligation bonds issued under chapter 296 or section
3 3 298.20 or loan agreements under section 297.36, for carrying
3 4 on public educational and recreational activities pursuant to
3 5 chapter 300, payments made pursuant to a lease or lease-
3 6 purchase agreement, or the payment of principal and interest
3 7 on bonds issued under section 422F.5.
3 8 Sec. 4. NEW SECTION. 422F.2 SCHOOL DISTRICT
3 9 INFRASTRUCTURE SALES TAX FUND.
3 10 1. a. A school district infrastructure sales tax fund is
3 11 created as a separate and distinct fund in the state treasury
3 12 under the control of the department of revenue and finance.
3 13 Moneys in the fund include revenues credited to the fund
3 14 pursuant to section 422F.3, subsection 6, from all counties
3 15 that impose the tax, appropriations made to the fund, and
3 16 other moneys deposited into the fund. The moneys credited in
3 17 a fiscal year to the fund shall be distributed as provided in
3 18 paragraph "b".
3 19 b. (1) Each school district located in whole or in part
3 20 in a county that has imposed the local option school
3 21 infrastructure sales tax pursuant to this chapter shall
3 22 receive distributions for each student attending school in the
3 23 county on a per student basis calculated by the director of
3 24 revenue and finance by dividing the moneys available during
3 25 the previous calendar quarter by the combined actual
3 26 enrollment for all school districts receiving distributions
3 27 under this paragraph "b".
3 28 (2) The combined actual enrollment for school districts,
3 29 for purposes of subparagraph (1), shall be calculated by
3 30 adding together the actual enrollment which attend school in
3 31 the county for each school district receiving distributions
3 32 under subparagraph (1) as determined by the department of
3 33 management based on the actual enrollment figures reported by
3 34 October 1 to the department of management by the department of
3 35 education pursuant to section 257.6, subsection 1. The
4 1 combined actual enrollment count shall be forwarded to the
4 2 director of revenue and finance by March 1, annually, for
4 3 purposes of supplying estimated tax payment figures and making
4 4 tax payments pursuant to subsection 2 for the following four
4 5 calendar quarters.
4 6 (3) If a county imposes the tax at a rate of less than one
4 7 percent or for less than a full fiscal year, the amount
4 8 available to the school districts within the county equals a
4 9 ratio of the tax rate divided by one percent multiplied by the
4 10 quotient of the number of quarters the tax is imposed divided
4 11 by four.
4 12 2. a. The director of revenue and finance by April 10
4 13 preceding each fiscal year shall send to each school district
4 14 an estimate of the amount of tax moneys each school district
4 15 will receive for the year and for each quarter of the year.
4 16 At the end of each quarter, the director may revise the
4 17 estimates for the year and remaining quarters.
4 18 b. The director shall remit ninety-five percent of the
4 19 estimated tax receipts collected during the previous calendar
4 20 quarter for the school district to the school district at or
4 21 before the end of the following calendar quarter.
4 22 c. The director shall remit a final payment of the
4 23 remainder of tax moneys due for the fiscal year before
4 24 November 10 of the next fiscal year. If an overpayment has
4 25 resulted during the previous fiscal year, the November payment
4 26 shall be adjusted to reflect any overpayment.
4 27 Sec. 5. NEW SECTION. 422F.3 IMPOSITION BY COUNTY –
4 28 REPEAL.
4 29 1. a. A local option school infrastructure sales tax
4 30 shall be imposed by a county only after an election at which a
4 31 majority of those voting on the question favors imposition. A
4 32 local option school infrastructure sales tax approved by a
4 33 majority vote shall apply to all incorporated and
4 34 unincorporated areas of the county.
4 35 b. Every county that has not voted on and approved prior
5 1 to April 1, 2003, a local sales and services tax for school
5 2 infrastructure purposes under chapter 422E or that has not
5 3 published notice of the ballot proposition prior to April 1,
5 4 2003, and subsequently approved such tax shall submit the
5 5 question of the imposition of a local option school
5 6 infrastructure sales tax at the time of the city regular
5 7 election on November 4, 2003. The ballot proposition in each
5 8 school district shall contain a statement as to the specific
5 9 purpose or purposes for which the revenues shall be expended
5 10 by that school district. If the question of imposition is not
5 11 approved by a majority vote, subsequent elections on the same
5 12 question may be held as provided in subsection 2. Upon
5 13 approval of the tax by a majority vote, the tax shall be
5 14 imposed January 1, 2004, in the case of an election held on
5 15 November 4, 2003, or imposed January 1 or July 1 but not
5 16 sooner than ninety days following the favorable election, in
5 17 the case of an election held after November 4, 2003, but
5 18 before September 15, 2021. However, in the case of a county
5 19 that has voted on and approved a local sales and services tax
5 20 for school infrastructure purposes under chapter 422E prior to
5 21 April 1, 2003, or that has published notice of the ballot
5 22 proposition prior to April 1, 2003, and subsequently approved
5 23 such tax, the question of imposition of the tax under this
5 24 section shall specify the date when the tax under this section
5 25 shall become effective. The date shall only be on the date
5 26 specified for the repeal of the tax under chapter 422E, as
5 27 provided in that chapter. Upon the imposition of the tax
5 28 under this section the county's tax imposed under chapter 422E
5 29 is repealed.
5 30 2. After the original election required under subsection
5 31 1, at which the question of the imposition of the tax is not
5 32 approved by a majority, subsequent elections may be held prior
5 33 to September 15, 2021, as follows:
5 34 a. Upon receipt by a county board of supervisors of a
5 35 petition requesting imposition of a local option school
6 1 infrastructure sales tax, signed by eligible electors of the
6 2 whole county equal in number to five percent of the persons in
6 3 the whole county who voted at the last preceding state general
6 4 election, the board shall within thirty days direct the county
6 5 commissioner of elections to submit the question of imposition
6 6 of the tax to the registered voters of the whole county.
6 7 b. Alternatively, the question of imposition of a local
6 8 option school infrastructure sales tax may be proposed by
6 9 motion or motions, requesting such submission, adopted by the
6 10 governing body of a school district or school districts
6 11 located within the county containing a total, or a combined
6 12 total in the case of more than one school district, of at
6 13 least one-half of the population of the county, or by the
6 14 county board of supervisors. Upon adoption of such motion,
6 15 the governing body of a school district shall notify the board
6 16 of supervisors of the adoption of the motion. The county
6 17 board of supervisors shall submit the school districts' motion
6 18 or its own motion to the county commissioner of elections, who
6 19 shall publish notice of the ballot proposition concerning the
6 20 imposition of the local option school infrastructure sales
6 21 tax. A school district motion ceases to be valid at the time
6 22 of the holding of the regular election for the election of
6 23 members of the governing body which adopted the motion.
6 24 c. The method for holding an election as specified in
6 25 paragraphs "a" and "b" also apply to a county that has voted
6 26 on and approved a local sales and services tax for school
6 27 infrastructure purposes under chapter 422E prior to April 1,
6 28 2003, a county that has published notice of the ballot
6 29 proposition to impose the tax under chapter 422E prior to
6 30 April 1, 2003, and subsequently approved such tax, and a
6 31 county that has imposed a local option school infrastructure
6 32 tax under this chapter.
6 33 3. The county commissioner of elections shall submit the
6 34 question of imposition of a local option school infrastructure
6 35 sales tax at a state general election or at a special election
7 1 held at any time other than the time of a city regular
7 2 election. The election shall not be held sooner than sixty
7 3 days after publication of notice of the ballot proposition.
7 4 The state commissioner of elections shall establish by rule
7 5 the form for the ballot proposition which form shall be
7 6 uniform throughout the state. However, the ballot proposition
7 7 in each school district shall contain a statement as to the
7 8 specific purpose or purposes for which the revenues shall be
7 9 expended by that school district.
7 10 4. a. The tax may be repealed or the rate increased, but
7 11 not above one percent, or decreased after an election at which
7 12 a majority of those voting on the question of repeal or rate
7 13 change favored the repeal or rate change. The election at
7 14 which the question of repeal or rate change is offered shall
7 15 be called and held in the same manner and under the same
7 16 conditions as provided in this section for the election on the
7 17 imposition of the tax. The election may be held at any time
7 18 but not sooner than sixty days following publication of the
7 19 ballot proposition. However, the tax shall not be repealed
7 20 before it has been in effect for one year.
7 21 b. (1) Within ten days of the election at which a
7 22 majority of those voting on the question favors the
7 23 imposition, repeal, or change in the rate of the tax, the
7 24 county commissioner of elections shall give written notice of
7 25 the result of the election by sending a copy of the abstract
7 26 of the votes from the favorable election to the director of
7 27 revenue and finance.
7 28 (2) A local option school infrastructure sales tax shall
7 29 not be repealed or reduced in rate if obligations are
7 30 outstanding which are payable as provided in section 422F.6,
7 31 unless funds sufficient to pay the principal, interest, and
7 32 premium, if any, on the outstanding obligations at and prior
7 33 to maturity have been properly set aside and pledged for that
7 34 purpose. However, this subparagraph does not apply to the
7 35 repeal of the tax on December 31, 2022, as specified in
8 1 subsection 5, paragraph "a".
8 2 5. a. Each local option school infrastructure sales tax
8 3 imposed as a result of a favorable election held before
8 4 September 15, 2021, is repealed on December 31, 2022, or on an
8 5 earlier date as provided on the ballot proposition.
8 6 b. A local option school infrastructure sales tax shall be
8 7 repealed June 30 or December 31, but not sooner than ninety
8 8 days, following the favorable election.
8 9 6. The director of revenue and finance shall credit tax
8 10 receipts and interest and penalties from the local option
8 11 school infrastructure sales tax to the school district
8 12 infrastructure sales tax fund created in section 422F.2,
8 13 subsection 1.
8 14 7. Costs of elections held pursuant to this section shall
8 15 be apportioned among school districts within the county on a
8 16 pro rata basis in proportion to the number of registered
8 17 voters in each school district who reside within the county
8 18 and the total number of registered voters within the county.
8 19 Sec. 6. NEW SECTION. 422F.4 COLLECTION AND
8 20 ADMINISTRATION OF TAX.
8 21 1. If a majority of those voting on the question of
8 22 imposition of a local option school infrastructure sales tax
8 23 favors imposition of the tax, the tax shall be imposed by the
8 24 county board of supervisors within the county pursuant to
8 25 section 422F.3, at the rate specified for not more than ten
8 26 years on the gross receipts taxed by the state under chapter
8 27 422, division IV.
8 28 2. The tax shall be imposed on the same basis as the state
8 29 sales and services tax or in the case of the use of natural
8 30 gas, natural gas service, electricity, or electric service on
8 31 the same basis as the state use tax and shall not be imposed
8 32 on the sale of any property or on any service not taxed by the
8 33 state, except the tax shall not be imposed on the gross
8 34 receipts from the sale of motor fuel or special fuel as
8 35 defined in chapter 452A which is consumed for highway use or
9 1 in watercraft or aircraft if the fuel tax is paid on the
9 2 transaction and a refund has not been or will not be allowed,
9 3 on the gross receipts from the rental of rooms, apartments, or
9 4 sleeping quarters which are taxed under chapter 422A during
9 5 the period the hotel and motel tax is imposed, on the gross
9 6 receipts taxed pursuant to chapter 422E during the period the
9 7 tax under chapter 422E is imposed, on the gross receipts from
9 8 the sale of equipment by the state department of
9 9 transportation, on the gross receipts from the sale of self-
9 10 propelled building equipment, pile drivers, motorized
9 11 scaffolding, or attachments customarily drawn or attached to
9 12 self-propelled building equipment, pile drivers, and motorized
9 13 scaffolding, including auxiliary attachments which improve the
9 14 performance, safety, operation, or efficiency of the
9 15 equipment, and replacement parts and are directly and
9 16 primarily used by contractors, subcontractors, and builders
9 17 for new construction, reconstruction, alterations, expansion,
9 18 or remodeling of real property or structures, and on the gross
9 19 receipts from the sale of a lottery ticket or share in a
9 20 lottery game conducted pursuant to chapter 99E and except the
9 21 tax shall not be imposed on the gross receipts from the sale
9 22 or use of natural gas, natural gas service, electricity, or
9 23 electric service in a city or county where the gross receipts
9 24 from the sale of natural gas or electric energy are subject to
9 25 a franchise fee or user fee during the period the franchise or
9 26 user fee is imposed.
9 27 3. The tax is applicable to transactions within the county
9 28 where it is imposed and shall be collected by all persons
9 29 required to collect state gross receipts or local excise
9 30 taxes. However, a person required to collect state retail
9 31 sales tax under chapter 422, division IV, is not required to
9 32 collect the local sales tax on transactions delivered within
9 33 the area where the local sales tax is imposed unless the
9 34 person has physical presence in that taxing area. The amount
9 35 of the sale, for purposes of determining the amount of the
10 1 tax, does not include the amount of any state gross receipts
10 2 or excise taxes or other local option sales or excise taxes.
10 3 A tax permit other than the state tax permit required under
10 4 section 422.53 or 423.10 shall not be required by local
10 5 authorities.
10 6 4. The local option school infrastructure sales tax shall
10 7 be administered as provided in section 422B.9.
10 8 5. Construction contractors may make application to the
10 9 department for a refund of the additional local option school
10 10 infrastructure sales tax paid under this chapter by reason of
10 11 taxes paid on goods, wares, or merchandise under the
10 12 conditions specified in section 422B.11. The refund shall be
10 13 paid by the department from the school district infrastructure
10 14 sales tax fund. The penalty provisions contained in section
10 15 422B.11, subsection 3, shall apply regarding an erroneous
10 16 application for refund of local option school infrastructure
10 17 sales tax paid under this chapter.
10 18 Sec. 7. NEW SECTION. 422F.5 USE OF SCHOOL DISTRICT SALES
10 19 TAX MONEYS.
10 20 1. Moneys received by a school district from the school
10 21 district infrastructure sales tax fund under section 422F.2,
10 22 subsection 1, paragraph "b", shall be spent for the purpose or
10 23 purposes specified on the ballot proposition.
10 24 2. For purposes of this section, "infrastructure purposes"
10 25 means those purposes for which a school district is authorized
10 26 to contract indebtedness and issue general obligation bonds
10 27 under chapter 296 or to expend tax revenues under section
10 28 298.3, the payment of principal and interest on general
10 29 obligation bonds issued under chapter 296 or section 298.20 or
10 30 loan agreements under section 297.36, for carrying on public
10 31 educational and recreational activities pursuant to chapter
10 32 300, payments made pursuant to a real property lease or lease-
10 33 purchase agreement, or the payment of principal and interest
10 34 on bonds issued under 422F.6.
10 35 Sec. 8. NEW SECTION. 422F.6 BONDING.
11 1 The board of directors of a school district shall be
11 2 authorized to issue negotiable, interest-bearing school bonds,
11 3 without election, and utilize tax receipts derived from the
11 4 local option school infrastructure sales tax for principal and
11 5 interest repayment. Proceeds of the bonds issued pursuant to
11 6 this section shall be utilized solely for school
11 7 infrastructure purposes as defined in section 422F.1,
11 8 subsection 3. Issuance of bonds pursuant to this section
11 9 shall be permitted only in a district which has imposed a
11 10 local option school infrastructure sales tax pursuant to
11 11 section 422F.3. The provisions of sections 298.22 through
11 12 298.24 shall apply regarding the form, rate of interest,
11 13 registration, redemption, and recording of bond issues
11 14 pursuant to this section, with the exception that the maximum
11 15 period during which principal on the bonds is payable shall
11 16 not exceed a ten-year period, or the date of repeal stated on
11 17 the ballot proposition.
11 18 A school district in which a local option school
11 19 infrastructure sales tax has been imposed shall be authorized
11 20 to enter into a chapter 28E agreement with one or more cities
11 21 or a county whose boundaries encompass all or a part of the
11 22 area of the school district. A city or cities entering into a
11 23 chapter 28E agreement shall be authorized to expend its
11 24 designated portion of the local option school infrastructure
11 25 sales tax revenues for any valid purpose permitted in this
11 26 chapter or authorized by the governing body of the city. A
11 27 county entering into a chapter 28E agreement with a school
11 28 district in which a local option school infrastructure sales
11 29 tax has been imposed shall be authorized to expend its
11 30 designated portion of the local option school infrastructure
11 31 sales tax revenues to provide property tax relief within the
11 32 boundaries of the school district located in the county. A
11 33 school district where a local option school infrastructure
11 34 sales tax is imposed is also authorized to enter into a
11 35 chapter 28E agreement with another school district, a
12 1 community college, or an area education agency which is
12 2 located partially or entirely in or is contiguous to the
12 3 county where the tax is imposed. The school district or
12 4 community college shall only expend its designated portion of
12 5 the local option school infrastructure sales tax for
12 6 infrastructure purposes. The area education agency shall only
12 7 expend its designated portion of the local option school
12 8 infrastructure sales tax for infrastructure and maintenance
12 9 purposes.
12 10 The governing body of a city may authorize the issuance of
12 11 bonds which are payable from its designated portion of the
12 12 revenues of the local option school infrastructure sales tax,
12 13 and not from property tax, by following the authorization
12 14 procedures set forth for cities in section 384.83. A city may
12 15 pledge irrevocably any amount derived from its designated
12 16 portions of the revenues of the local option school
12 17 infrastructure sales tax to the support or payment of such
12 18 bonds.
12 19 Sec. 9. NEW SECTION. 422F.7 REPEAL.
12 20 This chapter is repealed June 30, 2023, for fiscal years
12 21 beginning after that date.
12 22 Sec. 10. EFFECTIVE DATE. This Act, being deemed of
12 23 immediate importance, takes effect April 1, 2003.
12 24 EXPLANATION
12 25 Present law provides for counties to impose a local sales
12 26 and services tax for school infrastructure purposes under Code
12 27 chapter 422E. This bill sets a moratorium on imposition by a
12 28 county of such tax. However, those counties that have voted
12 29 on and approved the tax prior to April 1, 2003, may continue
12 30 to impose the tax. In addition, a county that has published
12 31 notice of the ballot proposition prior to April 1, 2003, and
12 32 subsequently approved the tax may impose and continue the tax.
12 33 The bill provides for a new local option school
12 34 infrastructure sales tax under new Code chapter 422F which tax
12 35 is very similar to the present one. Each county that does not
13 1 have a chapter 422E tax in place on April 1, 2003, or has not
13 2 published the ballot proposition by April 1, 2003, and
13 3 approved the chapter 422E tax must hold an election on the
13 4 question of imposing the new tax at the time of the regular
13 5 city election on November 4, 2003. The ballot proposition
13 6 shall contain a statement as to the specific purpose or
13 7 purposes for which the revenues are to be spent. If the
13 8 question of imposition is not approved by a majority of the
13 9 voters, subsequent elections may be held. The imposition of
13 10 the new tax must be on January 1 or July 1. However, for
13 11 those counties that have voted on and approved the tax under
13 12 Code chapter 422E, the new tax cannot take effect until the
13 13 Code chapter 422E tax is repealed. The new local option tax
13 14 may be imposed for a period of up to 10 years. However, all
13 15 local option taxes are repealed December 31, 2022, and the
13 16 chapter is repealed on June 30, 2023.
13 17 Moneys collected from the tax shall be deposited into a
13 18 single statewide fund. School districts located in whole or
13 19 in part in a county that has imposed the new tax will receive
13 20 distributions from the single fund on a per pupil basis.
13 21 Moneys received are to be used for the purposes specified on
13 22 the ballot proposition.
13 23 The bill takes effect April 1, 2003.
13 24 LSB 1997HV 80
13 25 mg/cf/24
Text: HF00570 Text: HF00572 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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