701—271.4(422E) Collection of tax and distribution. When the director receives school infrastructure local option sales and services taxes from retailers, the director shall credit tax receipts, interest, and penalty to the school district’s corresponding account within the secure an advanced vision for education (SAVE) fund as provided in Iowa Code Supplement section 422E.3A. Credits shall be made to accounts within SAVE that are maintained in the name of the school districts within the county. If the director cannot determine from which county receipts were collected, then the receipts must be allocated among the possible counties based on the department’s allocation rules set forth below.
	271.4(1) Pro-rata share based on enrollment. By June 1 preceding each fiscal year the director must compute the guaranteed school infrastructure amount for each school district, each school district’s sales tax capacity per student, and the supplemental school infrastructure amount for the coming fiscal year. Each school district that has approved imposition of the tax under this chapter shall receive a guaranteed distribution amount of the tax revenues. Revenues from this tax will be allocated to each school district’s respective account by the department. If a county has more than one school district or a portion of a school district, tax revenues must be remitted to each school district or portion of a school district in which the tax is imposed on a pro-rata basis. The allocation on the pro-rata basis will be based upon the ratio of the actual enrollment for the school district that attends school in the county to the total combined actual enrollments for all of the school districts that attend school in the county. The formula to compute this ratio is the following:

Actual enrollment for the school district	
Total combined actual enrollments of all school districts in county	
Combined actual enrollment for a county is based on actual enrollment figures reported by October 1 by the department of education to the department of management. The actual enrollment figures are forwarded by March 1 annually to the department of revenue so the department can compute estimate payments for the following fiscal year.
School districts that voted on and approved a school infrastructure local option sales and services tax prior to April 1, 2003, but seek to not have distribution under this new computation formula shall not be included in the computations of estimates for the county or counties in which the school district is located.
If a school district is located in more than one county, the amount to be distributed to that school district will be computed separately for each county based on the school district’s actual enrollment in each county.
	271.4(2) Jurisdictions with tax approved prior to April 1, 2003. Jurisdictions that approved implementation of this tax prior to April 1, 2003, shall receive revenues based on the following formulas:
	a. 	Prior to April 1, 2003, approval and above per student capacity. A school district that approved the school infrastructure local option sales and services tax prior to April 1, 2003, and has a sales tax capacity per student above the guaranteed school infrastructure amount set forth in 701—271.1(422E) will receive an amount equal to its pro-rata share as computed in 271.4(1). A school district may elect to change the amount it receives and receive its distribution based on 271.4(1) for all subsequent years for the duration of the term of the tax for that jurisdiction. To receive this distribution, a school district must have passed a resolution by October 1, 2003, to agree to receive distribution of the revenues from the tax based on the full amount to be received under 701—Chapter 270.
	b. 	Prior to April 1, 2003, approval and below per student capacity. A school district that approved the school infrastructure local option sales and services tax prior to April 1, 2003, and has a sales tax capacity per student below the guaranteed school infrastructure amount will receive an amount equal to its pro-rata share as computed in 271.4(1) and receive a supplemental amount as defined in 701—271.1(422E) for the remainder of the term of the tax in that jurisdiction. A school district may opt out of receiving this supplemental amount and choose to receive its distribution based on 271.4(1) for all subsequent years for the duration of the term of the tax for that jurisdiction. To opt out, a school district must have passed a resolution by October 1, 2003, to agree to receive distribution of the revenues from the tax based on the full amount to be received under 701—Chapter 270.
	271.4(3) Jurisdictions with tax voted on and approved on or after April 1, 2003. Jurisdictions that have approved implementation of this tax on or after April 1, 2003, will receive revenues based on the following formulas:
	a. 	A school district that has voted on and approved this tax on or after April 1, 2003, will receive an amount equal to its pro-rata share as computed in 271.4(1), not to exceed its guaranteed amount revenues. If a school district’s pro-rata share does not meet the guaranteed amount of revenues then the district must receive a supplemental amount.
	b. 	A school district that approves the continuation of the tax on or after April 1, 2003, will receive an amount equal to its pro-rata share as computed in 271.4(1), not to exceed its guaranteed amount. However, if the school district’s pro-rata share is less than its guaranteed amount, the school district will receive a supplemental amount.
It must be noted that payment to a school district shall not exceed the guaranteed school district amount. A school district that qualifies for a supplemental payment shall not receive more than the guaranteed amount in any subsequent year.
[ARC 6508C, IAB 9/7/22, effective 10/12/22; Editorial change: IAC Supplement 10/18/23]