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Senate File 291

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 260C.18, Code 2003, is amended by
  1  2 adding the following new subsection:
  1  3    NEW SUBSECTION.  8.  Revenue derived from imposition of the
  1  4 income surtax authorized pursuant to section 260C.26.
  1  5    Sec. 2.  NEW SECTION.  260C.26  INCOME SURTAX.
  1  6    1.  An income surtax that provides funding for community
  1  7 colleges in addition to the taxes authorized pursuant to
  1  8 sections 260C.17, 260C.22, and 260C.28 is established.  The
  1  9 income surtax may be imposed for a period not to exceed five
  1 10 years by a resolution adopted by the board of directors of a
  1 11 merged area, or for a period not to exceed ten years if
  1 12 approved by a majority of the registered voters voting in the
  1 13 merged area.  The rate of income surtax shall be established
  1 14 by the board, not to exceed one-half of one percent.  Revenue
  1 15 derived from the income surtax may be utilized for any purpose
  1 16 specified by the board either by resolution in the case of a
  1 17 board-authorized income surtax, or as stated on the ballot
  1 18 proposition.
  1 19    2.  If the board does not provide for an election and
  1 20 adopts a resolution to impose the income surtax for a period
  1 21 not to exceed five years, the income surtax shall be imposed
  1 22 unless, within twenty-eight days following the action of the
  1 23 board, the secretary of the board receives a petition
  1 24 containing the required number of signatures, asking that an
  1 25 election be called to approve or disapprove the action of the
  1 26 board in adopting the resolution to impose the tax.  The
  1 27 petition must be signed by registered voters equal in number
  1 28 to not less than one hundred or thirty percent of the number
  1 29 of voters at the last preceding regular school election,
  1 30 whichever is greater.  The board shall either rescind its
  1 31 action or direct the county commissioner of elections to
  1 32 submit the question to the registered voters of the merged
  1 33 area at the next following regular school election or a
  1 34 special election.  If a majority of those voting on the
  1 35 question at the election favors disapproval of the action of
  2  1 the board, the board shall not impose the income surtax.  If a
  2  2 majority of those voting on the question does not favor
  2  3 disapproval of the action, the board shall certify the results
  2  4 of the election to the department of management and the income
  2  5 surtax shall be imposed as provided in subsection 4.
  2  6    3.  If the board adopts a resolution to impose the income
  2  7 surtax for a period exceeding five years, but not to exceed
  2  8 ten years, the board shall submit the question of imposition
  2  9 of the income surtax to the registered voters in the merged
  2 10 area pursuant to the election provisions of section 260C.15.
  2 11    4.  An income surtax shall be imposed for tax years
  2 12 beginning on or after January 1 of the fiscal year in which
  2 13 the resolution was adopted or a favorable election was held,
  2 14 on the state individual income tax of each individual residing
  2 15 in the merged area at the end of the individual's applicable
  2 16 tax year.  However, the cumulative total of the percents of
  2 17 income surtax imposed on any taxpayer in the merged area shall
  2 18 not exceed twenty percent.  For purposes of this section,
  2 19 "state individual income tax" means the tax computed under
  2 20 section 422.5, less the credits allowed in sections 422.11A,
  2 21 422.11B, 422.12, and 422.12B.
  2 22    5.  The director of revenue and finance shall administer
  2 23 the income surtax imposed under this section, and sections
  2 24 422.20, 422.22 to 422.31, 422.68, and 422.72 to 422.75 shall
  2 25 apply with respect to administration of the income surtax.
  2 26 The income surtax shall be made a part of the Iowa individual
  2 27 income tax return subject to the conditions and restrictions
  2 28 set forth in section 422.21.  The director shall collect and
  2 29 account for the income surtax and any interest and penalties,
  2 30 and shall credit income surtax receipts and any interest and
  2 31 penalties collected from returns filed on or before November 1
  2 32 of the calendar year following the tax year for which the
  2 33 income surtax is imposed to a community college income surtax
  2 34 fund created in the department of revenue and finance.  All
  2 35 income surtax receipts and any interest and penalties received
  3  1 or refunded from returns filed after November 1 of the
  3  2 calendar year following the tax year for which the income
  3  3 surtax is imposed shall be deposited in or withdrawn from the
  3  4 general fund of the state and shall be considered part of the
  3  5 cost of administering the income surtax.
  3  6    6.  Amounts credited to the community college income surtax
  3  7 fund shall be separately allocated to the credit of each
  3  8 merged area, and a separate accounting of each surtax, by
  3  9 merged area, shall be maintained.  The director of revenue and
  3 10 finance shall draw warrants in payment of the surtaxes
  3 11 collected in each merged area.  Warrants shall be payable in
  3 12 two installments to be paid on approximately the first day of
  3 13 December and the first day of February following collection of
  3 14 the taxes and shall be delivered to the respective merged
  3 15 areas.
  3 16    Sec. 3.  Section 298.14, unnumbered paragraph 1, Code 2003,
  3 17 is amended to read as follows:
  3 18    For each fiscal year, the cumulative total of the percents
  3 19 of surtax approved by the board of directors of a school
  3 20 district and collected by the department of revenue and
  3 21 finance under sections 257.21, 257.29, and 298.2, and the
  3 22 enrichment surtax under section 442.15, Code 1989, and an the
  3 23 income surtax collected by a political subdivision under
  3 24 chapter 422D, and the income surtax collected pursuant to
  3 25 section 260C.26 shall not exceed twenty percent.  
  3 26                           EXPLANATION
  3 27    This bill provides for the imposition of a community
  3 28 college income surtax.  The bill provides that the income
  3 29 surtax may be imposed for a period not to exceed five years by
  3 30 a resolution adopted by the board of directors of a merged
  3 31 area, or for a period not to exceed 10 years if approved by a
  3 32 majority vote of the eligible electors in the merged area.
  3 33 The bill provides that the rate of tax shall not exceed one-
  3 34 half of 1 percent, and that revenue derived from the income
  3 35 surtax may be utilized for any purpose specified by the board
  4  1 and, if applicable, stated on the ballot proposition.
  4  2    The bill provides that if the board adopts a resolution to
  4  3 impose the income surtax for a period not to exceed five
  4  4 years, reverse referendum provisions are applicable.  The bill
  4  5 provides that if the board adopts a resolution to impose the
  4  6 income surtax for a period exceeding five years, but not to
  4  7 exceed 10 years, the board shall submit the question of
  4  8 imposition of the income surtax to the registered voters in
  4  9 the merged area pursuant to the election provisions of Code
  4 10 section 260C.15.
  4 11    The bill provides that the income surtax shall be imposed
  4 12 for tax years beginning on or after January 1 of the fiscal
  4 13 year in which the resolution was adopted or a favorable
  4 14 election was held, on the state individual income tax of each
  4 15 individual residing in the merged area at the end of the
  4 16 individual's applicable tax year.  The bill provides, however,
  4 17 that the cumulative total of the percents of income surtax
  4 18 imposed on any taxpayer in the merged area shall not exceed 20
  4 19 percent, and makes corresponding changes to Code section
  4 20 298.14.  The bill provides references to Code sections
  4 21 specifying the computation of the state individual income tax
  4 22 and the application of credits to the tax, and provides
  4 23 references to several Code sections regarding administration
  4 24 of the tax.
  4 25    The bill provides that the director of revenue and finance
  4 26 shall collect and account for the income surtax and any
  4 27 interest and penalties, and shall credit them to a community
  4 28 college income surtax fund created in the department of
  4 29 revenue and finance.  The bill provides that amounts credited
  4 30 to the fund shall be separately allocated to the credit of
  4 31 each merged area, and a separate accounting of each surtax, by
  4 32 merged area, shall be maintained.  The bill provides that the
  4 33 director of revenue and finance shall draw warrants in payment
  4 34 of the surtaxes collected in each merged area, which shall be
  4 35 payable in two installments to be paid on approximately the
  5  1 first day of December and the first day of February following
  5  2 collection of the taxes and shall be delivered to the
  5  3 respective merged areas.  
  5  4 LSB 2325SS 80
  5  5 rn/cl/14
     

Text: SF00290                           Text: SF00292
Text: SF00200 - SF00299                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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