Text: HSB00181 Text: HSB00183 Text: HSB00100 - HSB00199 Text: HSB 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 to read as follows: 1 3 3.LocalExcept as provided in subsection 4, local sales 1 4 and services tax moneys received by a county for school 1 5 infrastructure purposes pursuant to this chapter shall be 1 6 utilized solely for school infrastructure needs. For purposes 1 7 of this chapter, "school infrastructure" means those 1 8 activities for which a school district is authorized to 1 9 contract indebtedness and issue general obligation bonds under 1 10 section 296.1, except those activities related to a teacher's 1 11 or superintendent's home or homes. These activities include 1 12 the construction, reconstruction, repair, purchasing, or 1 13 remodeling of schoolhouses, stadiums, gyms, fieldhouses, and 1 14 bus garages and the procurement of schoolhouse construction 1 15 sites and the making of site improvements. Additionally, 1 16 "school infrastructure" includes the payment or retirement of 1 17 outstanding bonds previously issued for school infrastructure 1 18 purposes as defined in this subsection, and the payment or 1 19 retirement of bonds issued under section 422E.4. 1 20 Sec. 2. Section 422E.1, Code 2003, is amended by adding 1 21 the following new subsection: 1 22 NEW SUBSECTION. 4. a. Local sales and services tax 1 23 moneys received by a school district located entirely or 1 24 partially in a county that has imposed the tax on or after 1 25 January 1, 2003, or that voted to continue a tax which was 1 26 originally imposed prior to January 1, 2003, shall be spent 1 27 for property tax relief or infrastructure purposes according 1 28 to an infrastructure plan developed by the board of directors. 1 29 The infrastructure plan may apply to more than one fiscal 1 30 year. Prior to adoption of the plan, the board of directors 1 31 shall hold a public hearing on the question of approval of the 1 32 proposed plan. The board shall set forth its proposal and 1 33 shall publish the notice of the time and place of a public 1 34 hearing on the proposed plan. Notice of the time and place of 1 35 the public hearing shall be published not less than ten nor 2 1 more than twenty days before the public hearing in a newspaper 2 2 which is a newspaper of general circulation in the school 2 3 district. At the hearing, or no later than thirty days after 2 4 the date of the hearing, the board shall take action to adopt 2 5 the proposed plan. 2 6 b. If the board adopts the plan, the board shall direct 2 7 the county commissioner of elections to submit the question of 2 8 the approval or disapproval of the infrastructure plan to the 2 9 registered voters of the school district at the next following 2 10 regular school election or a special election. If at least 2 11 sixty percent of those voting on the question favor the plan 2 12 of the board, the moneys received shall be used according to 2 13 the plan beginning with the first fiscal year following that 2 14 election until a change in the plan is approved at a 2 15 subsequent election by at least sixty percent of those voting 2 16 on the question. If at least sixty percent of those voting on 2 17 the question at the election does not favor the plan of the 2 18 board, the district shall use the moneys received as provided 2 19 in paragraph "c" for the fiscal year. 2 20 A plan approved at an election shall only be valid for up 2 21 to ten years at which time the board must approve another plan 2 22 or the same one and submit this plan at an election in the 2 23 same manner and under the same conditions as provided for the 2 24 original plan. 2 25 c. If the infrastructure plan is not approved at an 2 26 election as provided in paragraph "b", or if a plan is not 2 27 approved by the board, moneys received by a school district or 2 28 moneys in excess of those needed for infrastructure purposes 2 29 according to an approved plan shall be used for the fiscal 2 30 year to reduce the following levies in the following order: 2 31 (1) Bond levies under sections 298.18 and 298.18A and all 2 32 other debt levies until the moneys received or the levies are 2 33 reduced to zero. 2 34 (2) The nonvoter-approved instructional support levy under 2 35 section 257.18, until the moneys received or the levy is 3 1 reduced to zero. 3 2 (3) The voter-approved physical plant and equipment levy 3 3 under section 298.2, until the moneys received or the levy is 3 4 reduced to zero. 3 5 (4) The voter-approved instructional support levy under 3 6 section 257.18, until the moneys received or the levy is 3 7 reduced to zero. 3 8 (5) The additional property tax levy under section 257.4, 3 9 until the moneys received or the levy is reduced to zero. 3 10 Any money remaining after the reduction of the levies 3 11 specified in this paragraph "c" may be used for any property 3 12 tax levy reduction purpose of the school district. 3 13 d. For purposes of this subsection, "infrastructure 3 14 purposes" means those purposes for which a school district is 3 15 authorized to contract indebtedness and issue general 3 16 obligation bonds under chapter 296 or to expend tax revenues 3 17 under section 298.3, the payment of principal and interest on 3 18 general obligation bonds issued under chapter 296 or section 3 19 298.20 or loan agreements under section 297.36, payments made 3 20 pursuant to a real property lease or lease-purchase agreement, 3 21 or the payment of principal and interest on bonds issued under 3 22 section 422E.4. 3 23 e. Notwithstanding any other provision in this subsection, 3 24 moneys received by a school district subject to this 3 25 subsection during the fiscal period beginning January 1, 2003, 3 26 and ending June 30, 2004, shall be dedicated for property tax 3 27 relief by reducing the levies specified in paragraph "c" for 3 28 taxes payable in the fiscal year beginning July 1, 2004. 3 29 However, if an infrastructure plan is approved at an election 3 30 by the required sixty percent of those voting prior to March 3 31 1, 2004, any amount of such dedicated moneys may be used for 3 32 the purposes specified under the plan. 3 33 Sec. 3. Section 422E.3, subsection 4, Code 2003, is 3 34 amended to read as follows: 3 35 4.TheFor counties that have imposed the local sales and 4 1 services tax for school infrastructure purposes prior to 4 2 January 1, 2003, the director of revenue and finance shall 4 3 credit tax receipts and interest and penalties from thelocal4 4sales and servicestaxfor school infrastructure purposesto 4 5 an account within the county's local sales and services tax 4 6 fund, as created in section 422B.10, subsection 1, maintained 4 7 in the name of the school district or school districts located 4 8 within the county. If the director is unable to determine 4 9 from which county any of the receipts were collected, those 4 10 receipts shall be allocated among the possible counties based 4 11 on allocation rules adopted by the director. 4 12 Sec. 4. Section 422E.3, subsection 5, paragraph a, Code 4 13 2003, is amended to read as follows: 4 14 a.TheFor counties that have imposed the local sales and 4 15 services tax for school infrastructure purposes prior to 4 16 January 1, 2003, the director of revenue and finance by August 4 17 15 of each fiscal year shall send to each school district 4 18 where the tax is imposed an estimate of the amount of tax 4 19 moneys each school district will receive for the year and for 4 20 each month of the year. At the end of each month, the 4 21 director may revise the estimates for the year and remaining 4 22 months. 4 23 Sec. 5. Section 422E.3, subsection 5, Code 2003, is 4 24 amended by adding the following new paragraph: 4 25 NEW PARAGRAPH. d. Subsection 4 and this subsection do not 4 26 apply to counties that have imposed the local sales and 4 27 services tax for school infrastructure purposes on or after 4 28 January 1, 2003, and to counties that imposed the tax prior to 4 29 January 1, 2003, but voted to continue the imposition of the 4 30 tax beyond January 1, 2003. Subsection 4 and this subsection 4 31 are repealed the earlier of January 1, 2013, or the date when 4 32 subsection 4 and this subsection do not apply to any county. 4 33 Sec. 6. Section 422E.3, Code 2003, is amended by adding 4 34 the following new subsections: 4 35 NEW SUBSECTION. 5A. For counties that impose the local 5 1 sales and services tax for school infrastructure purposes on 5 2 or after January 1, 2003, and counties that voted to continue 5 3 the tax which was originally imposed prior to January 1, 2003, 5 4 the director of revenue and finance shall credit tax receipts 5 5 and interest and penalties from the tax to the county's 5 6 account in the school district local sales and services tax 5 7 fund created in the office of the treasurer of state. 5 8 NEW SUBSECTION. 5B. a. The director of revenue and 5 9 finance by August 15 of each fiscal year shall send to each 5 10 school district where the tax is imposed an estimate of the 5 11 amount of tax moneys each school district will receive for the 5 12 year and for each month of the year. At the end of each 5 13 month, the director may revise the estimates for the year and 5 14 remaining months. 5 15 b. The director shall remit ninety-five percent of the 5 16 estimated tax receipts for the school district to the school 5 17 district on or before August 31 of the fiscal year and on or 5 18 before the last day of each following month. 5 19 c. The director shall remit a final payment of the 5 20 remainder of tax moneys due for the fiscal year before 5 21 November 10 of the next fiscal year. If an overpayment has 5 22 resulted during the previous fiscal year, the November payment 5 23 shall be adjusted to reflect any overpayment. 5 24 d. (1) If more than one school district, or a portion of 5 25 a school district, is located within the county, tax receipts 5 26 shall be remitted to each school district or portion of a 5 27 school district in which the county tax is imposed in a pro 5 28 rata share based upon the ratio of actual enrollment for the 5 29 school district of students that attend school in the county 5 30 to the total combined actual enrollment for all school 5 31 districts of students that attend school in the county. 5 32 (2) The combined actual enrollment for a county, for 5 33 purposes of this section, shall be determined for each county 5 34 by the department of management based on the actual enrollment 5 35 figures reported by October 1 to the department of management 6 1 by the department of education pursuant to section 257.6, 6 2 subsection 1. The combined actual enrollment count shall be 6 3 forwarded to the director of revenue and finance by March 1, 6 4 annually, for purposes of supplying estimated tax payment 6 5 figures and making estimated tax payments pursuant to this 6 6 section for the following fiscal year. 6 7 e. The actual tax receipts which a school district shall 6 8 receive shall not exceed the limitation provided in subsection 6 9 5C. 6 10 NEW SUBSECTION. 5C. a. The director of revenue and 6 11 finance by June 1 preceding each fiscal year shall compute the 6 12 statewide tax revenues per student for the coming fiscal year. 6 13 The statewide tax revenues per student is determined by 6 14 estimating the total revenues that would be generated by a one 6 15 percent local option sales and services tax for school 6 16 infrastructure purposes if imposed by all the counties during 6 17 the entire fiscal year and dividing this estimated revenue 6 18 amount by the sum of the combined actual enrollment for all 6 19 counties as described in subsection 5B, paragraph "d", 6 20 subparagraph (2). 6 21 b. The maximum amount that may be paid per student 6 22 pursuant to subsection 5B from tax receipts credited for the 6 23 fiscal year under subsection 5A to the school district local 6 24 sales and services tax account of a county equals the 6 25 statewide tax revenues per student, estimated in paragraph 6 26 "a", multiplied by the quotient of the county tax rate percent 6 27 divided by one percent and multiplied by the quotient of the 6 28 number of quarters the tax is imposed in the county during the 6 29 fiscal year divided by four quarters. 6 30 c. If the amount of the receipts credited for the fiscal 6 31 year under subsection 5A to the school district local sales 6 32 and services tax account of a county is in excess of the 6 33 maximum amount for that account as calculated under paragraph 6 34 "b", the excess shall be transferred by the director of 6 35 revenue and finance to a reserve pool in the fund to be 7 1 distributed to each county which imposed the tax during the 7 2 previous quarter that has not reached the maximum amount for 7 3 that county as calculated under paragraph "b". The moneys in 7 4 the reserve pool shall be distributed quarterly to the 7 5 eligible counties with each county receiving the same dollar 7 6 amount per student until the county reaches the maximum amount 7 7 calculated in paragraph "b". However, for a county that has 7 8 imposed the tax at a rate of less than one percent, the amount 7 9 that county shall receive per student shall be a fraction of 7 10 the amount the other counties received. The fraction equals 7 11 the county tax rate percent divided by one percent. 7 12 Notwithstanding the limitation in paragraph "b", if any 7 13 moneys remain in the reserve pool after all counties which 7 14 have imposed the tax during the previous quarter have reached 7 15 the limitation in paragraph "b", the remaining moneys shall be 7 16 distributed to each county which has imposed the tax during 7 17 the previous quarter at the same dollar amount per student. 7 18 However, for a county that has imposed the tax at a rate of 7 19 less than one percent, the amount that county shall receive 7 20 per student shall be a fraction of the amount the other 7 21 counties received. The fraction equals the county tax rate 7 22 percent divided by one percent. 7 23 d. Subsections 5A and 5B and this subsection apply to 7 24 counties that impose the local sales and services tax for 7 25 school infrastructure purposes on or after January 1, 2003, 7 26 and to counties that imposed the tax prior to January 1, 2003, 7 27 but voted to continue the imposition of the tax beyond January 7 28 1, 2003. 7 29 Sec. 7. Section 422E.3, subsection 7, Code 2003, is 7 30 amended to read as follows: 7 31 7. Construction contractors may make application to the 7 32 department for a refund of the additional local sales and 7 33 services tax paid under this chapter by reason of taxes paid 7 34 on goods, wares, or merchandise under the conditions specified 7 35 in section 422B.11. The refund shall be paid by the 8 1 department from the appropriate school district's account in 8 2 the local sales and services tax fund or from the school 8 3 district local sales and services tax fund, as applicable. 8 4 The penalty provisions contained in section 422B.11, 8 5 subsection 3, shall apply regarding an erroneous application 8 6 for refund of local sales and services tax paid under this 8 7 chapter. 8 8 Sec. 8. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES. 8 9 This Act, being deemed of immediate importance, takes effect 8 10 upon enactment and applies retroactively to January 1, 2003. 8 11 EXPLANATION 8 12 The bill provides a limitation on the local option sales 8 13 and services tax revenues collected in a county which are to 8 14 be distributed to school districts in that county. The limit 8 15 is equal to the total tax revenue that would be generated by a 8 16 1 percent school sales and services tax if imposed by all 99 8 17 counties divided by the actual enrollment for school districts 8 18 in the state for the previous school year. Counties that 8 19 collect tax revenue in excess of this per student limit will 8 20 have the revenues transferred to a reserve pool. The moneys 8 21 in the reserve pool will be used to provide additional 8 22 revenues to those counties which have imposed the tax but have 8 23 not reached their per student limit. 8 24 The per student limit is decreased for those counties which 8 25 impose the local sales and services tax for school 8 26 infrastructure purposes at less than 1 percent or impose it 8 27 for less than the entire fiscal year. 8 28 The limitation on tax revenues that school districts in a 8 29 county may receive applies to counties that impose the local 8 30 option sales and services tax on or after January 1, 2003, and 8 31 to those counties that currently impose the tax and vote to 8 32 continue the imposition of the tax beyond January 1, 2003. 8 33 Those counties that currently impose the tax on January 1, 8 34 2003, will continue to receive the tax revenues collected in 8 35 the county until the end of the 10-year period when the tax is 9 1 automatically repealed. The other school districts subject to 9 2 the new limitation under the bill will be required to spend 9 3 the revenues for property tax relief by lowering the debt 9 4 service levies, the voter-approved physical plant and 9 5 equipment levy, the instructional support levy, or the 9 6 additional property tax levy under the school aid formula 9 7 unless the school board adopts an infrastructure plan which is 9 8 approved at an election by 60 percent of those voting. 9 9 The bill takes effect upon enactment and applies 9 10 retroactively to January 1, 2003. 9 11 LSB 1985YC 80 9 12 mg/sh/8
Text: HSB00181 Text: HSB00183 Text: HSB00100 - HSB00199 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
© 2003 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue Feb 25 02:30:21 CST 2003
URL: /DOCS/GA/80GA/Legislation/HSB/00100/HSB00182/030224.html
jhf