House Amendment 1615
PAG LIN
1 1 Amend House File 692, as amended, passed, and
1 2 reprinted by the House, as follows:
1 3 #1. By striking everything after the enacting
1 4 clause and inserting the following:
1 5 <DIVISION I
1 6 PROPERTY TAXATION
1 7 Section 1. Section 441.19, subsections 1 and 2,
1 8 Code 2003, are amended to read as follows:
1 9 1. Supplemental and optional to the procedure for
1 10 the assessment of property by the assessor as provided
1 11 in this chapter, the assessor may require from all
1 12 persons required to list their property for taxation
1 13 as provided by sections 428.1 and 428.2, a
1 14 supplemental return to be prescribed by the director
1 15 of revenue and finance upon which the person shall
1 16 list the person's property and any additions or
1 17 modifications completed in the prior year to a
1 18 structure located on the property. The supplemental
1 19 return shall be in substantially the same form as now
1 20 prescribed by law for the assessment rolls used in the
1 21 listing of property by the assessors. Every person
1 22 required to list property for taxation shall make a
1 23 complete listing of the property upon supplemental
1 24 forms and return the listing to the assessor as
1 25 promptly as possible within thirty days of receiving
1 26 the assessment notice in section 441.23. The return
1 27 shall be verified over the signature of the person
1 28 making the return and section 441.25 applies to any
1 29 person making such a return. The assessor shall make
1 30 supplemental return forms available as soon as
1 31 practicable after the first day of January of each
1 32 year. The assessor shall make supplemental return
1 33 forms available to the taxpayer by mail, or at a
1 34 designated place within the taxing district.
1 35 2. Upon receipt of such supplemental return from
1 36 any person the assessor shall prepare a roll assessing
1 37 such person as hereinafter provided. In the
1 38 preparation of such assessment roll the assessor shall
1 39 be guided not only by the information contained in
1 40 such supplemental roll, but by any other information
1 41 the assessor may have or which may be obtained by the
1 42 assessor as prescribed by the law relating to the
1 43 assessment of property. The assessor shall not be
1 44 bound by any values or square footage determinations
1 45 or purchase prices as listed in such supplemental
1 46 return, and may include in the assessment roll any
1 47 property omitted from the supplemental return which in
1 48 the knowledge and belief of the assessor should be
1 49 listed as required by law by the person making the
1 50 supplemental return. Upon completion of such roll the
2 1 assessor shall deliver to the person submitting such
2 2 supplemental return a copy of the assessment roll,
2 3 either personally or by mail.
2 4 Sec. 2. NEW SECTION. 441.20 LEGISLATIVE INTENT.
2 5 It is the intent of the general assembly that there
2 6 be transparency in the property tax system. It is
2 7 further the intent of the general assembly that
2 8 property assessments for purposes of property taxation
2 9 be equal and uniform within classes of property. It
2 10 is further the intent of the general assembly to
2 11 minimize the impact that maintenance and upkeep by the
2 12 owner of property has on the assessment of that
2 13 property and that there be predictability in increases
2 14 of property assessments and that such predictability
2 15 be based primarily on the actions of the property
2 16 owner. It is further the intent of the general
2 17 assembly to minimize the impact that increases in
2 18 assessed value of property will have on property taxes
2 19 paid and that any increases will be primarily the
2 20 result of direct action taken by the local taxing
2 21 authority in setting budget amounts rather than by
2 22 increases in market value of property.
2 23 Sec. 3. Section 441.21, Code 2003, is amended by
2 24 striking the section and inserting in lieu thereof the
2 25 following:
2 26 441.21 ASSESSMENT OF STRUCTURES.
2 27 1. All real property, except land, subject to
2 28 taxation shall be assessed on a value per square foot
2 29 basis according to the provisions of this section.
2 30 2. a. Subject to paragraph "b", for valuations
2 31 established as of January 1, 2006, and for subsequent
2 32 assessment years, the assessed value per square foot
2 33 of a residential structure shall be an amount equal to
2 34 the valuation of the structure as determined for the
2 35 assessment year beginning January 1, 2005, prior to
2 36 application of the assessment limitation for that
2 37 year, divided by the total number of square feet of
2 38 the structure as of January 1, 2005.
2 39 b. (1) The assessed value per square foot of an
2 40 existing residential structure purchased after January
2 41 1, 2005, shall be the purchase price of the structure
2 42 divided by the cumulative inflation factor established
2 43 for the assessment year following the year of
2 44 purchase, divided by the total number of square feet
2 45 of the structure as of January 1 of the assessment
2 46 year. The assessed value per square foot of a
2 47 residential structure newly constructed after January
2 48 1, 2005, shall be the market value of the structure,
2 49 as determined by the assessor, divided by the
2 50 cumulative inflation factor established for the
3 1 assessment year following the year construction was
3 2 completed, divided by the total number of square feet
3 3 of the structure as of January 1 of the assessment
3 4 year. However, when valuing an addition that
3 5 substantially increases the square footage of a
3 6 structure, only that portion of the structure
3 7 comprising the addition shall be valued by the
3 8 assessor under this subparagraph.
3 9 (2) If additions or modifications to an existing
3 10 structure do not constitute a newly constructed
3 11 structure, the valuation of the structure shall only
3 12 increase if the square footage of the structure
3 13 increases. The increased valuation, if any, equals
3 14 the amount of increased square feet times the value
3 15 per square foot of the structure prior to the
3 16 additions or modifications.
3 17 3. a. Subject to paragraph "b" for valuations
3 18 established as of January 1, 2006, and for subsequent
3 19 assessment years, the assessed value per square foot
3 20 of a commercial or industrial structure shall be an
3 21 amount equal to the valuation of the structure as
3 22 determined for the assessment year beginning January
3 23 1, 2005, prior to application of the assessment
3 24 limitation for that year, divided by the total number
3 25 of square feet of the structure as of January 1, 2005.
3 26 b. (1) The assessed value per square foot of an
3 27 existing commercial or industrial structure purchased
3 28 after January 1, 2005, shall be the purchase price of
3 29 the structure divided by the cumulative inflation
3 30 factor established for the assessment year following
3 31 the year of purchase, divided by the total number of
3 32 square feet of the structure as of January 1 of the
3 33 assessment year. The assessed value per square foot
3 34 of a commercial or industrial structure newly
3 35 constructed after January 1, 2005, shall be the market
3 36 value of the structure, as determined by the assessor,
3 37 divided by the cumulative inflation factor established
3 38 for the assessment year following the year
3 39 construction was completed, divided by the total
3 40 number of square feet of the structure as of January 1
3 41 of the assessment year. However, when valuing an
3 42 addition that substantially increases the square
3 43 footage of a structure, only that portion of the
3 44 structure comprising the addition shall be valued by
3 45 the assessor under this subparagraph.
3 46 (2) If additions or modifications to an existing
3 47 structure do not constitute a newly constructed
3 48 structure, the valuation of the structure shall only
3 49 increase if the square footage of the structure
3 50 increases. The increased valuation, if any, equals
4 1 the amount of increased square feet times the value
4 2 per square foot of the structure prior to the
4 3 additions or modifications.
4 4 4. a. Subject to paragraph "b" for valuations
4 5 established as of January 1, 2006, and for subsequent
4 6 assessment years, the assessed value per square foot
4 7 of an agricultural structure that is not an
4 8 agricultural dwelling shall be an amount equal to the
4 9 valuation of the structure as determined for the
4 10 assessment year beginning January 1, 2005, prior to
4 11 application of the assessment limitation for that
4 12 year, divided by the total number of square feet of
4 13 the structure as of January 1, 2005.
4 14 b. (1) The assessed value per square foot of an
4 15 existing agricultural structure purchased after
4 16 January 1, 2005, shall be the productivity value of
4 17 the structure divided by the cumulative inflation
4 18 factor established for the assessment year following
4 19 the year of purchase, divided by the total number of
4 20 square feet of the structure as of January 1 of the
4 21 assessment year. The assessed value per square foot
4 22 of an agricultural structure newly constructed after
4 23 January 1, 2005, shall be the productivity value of
4 24 the structure for the assessment year following the
4 25 year construction was completed, as determined by the
4 26 assessor, divided by the cumulative inflation factor
4 27 established for the assessment year following the year
4 28 construction was completed, divided by the total
4 29 number of square feet of the structure as of January 1
4 30 of the assessment year. However, when valuing an
4 31 addition that substantially increases the square
4 32 footage of a structure, only that portion of the
4 33 structure comprising the addition shall be valued by
4 34 the assessor under this subparagraph.
4 35 (2) If additions or modifications to an existing
4 36 structure do not constitute a newly constructed
4 37 structure, the valuation of the structure shall only
4 38 increase if the square footage of the structure
4 39 increases. The increased valuation, if any, equals
4 40 the amount of increased square feet times the value
4 41 per square foot of the structure prior to the
4 42 additions or modifications.
4 43 5. a. In determining the market value of newly
4 44 constructed property, except agricultural structures,
4 45 the assessor may determine the value of the property
4 46 using uniform and recognized appraisal methods
4 47 including its productive and earning capacity, if any,
4 48 industrial conditions, its cost, physical and
4 49 functional depreciation and obsolescence and
4 50 replacement cost, and all other factors which would
5 1 assist in determining the fair and reasonable market
5 2 value of the property but the actual value shall not
5 3 be determined by use of only one such factor. The
5 4 following shall not be taken into consideration:
5 5 special value or use value of the property to its
5 6 present owner, and the goodwill or value of a business
5 7 that uses the property as distinguished from the value
5 8 of the property as property. However, in assessing
5 9 property that is rented or leased to low=income
5 10 individuals and families as authorized by section 42
5 11 of the Internal Revenue Code, as amended, and which
5 12 section limits the amount that the individual or
5 13 family pays for the rental or lease of units in the
5 14 property, the assessor shall use the productive and
5 15 earning capacity from the actual rents received as a
5 16 method of appraisal and shall take into account the
5 17 extent to which that use and limitation reduces the
5 18 market value of the property. The assessor shall not
5 19 consider any tax credit equity or other subsidized
5 20 financing as income provided to the property in
5 21 determining the market value. Upon adoption of
5 22 uniform rules by the department of revenue and finance
5 23 or covering assessments and valuations of such
5 24 properties, the valuation on such properties shall be
5 25 determined in accordance with such values for
5 26 assessment purposes to assure uniformity, but such
5 27 rules shall not be inconsistent with or change the
5 28 foregoing means of determining the market value.
5 29 b. The actual value of special purpose tooling,
5 30 which is subject to assessment and taxation as real
5 31 property under section 427A.1, subsection 1, paragraph
5 32 "e", but which can be used only to manufacture
5 33 property which is protected by one or more United
5 34 States or foreign patents, shall not exceed the fair
5 35 and reasonable exchange value between a willing buyer
5 36 and a willing seller, assuming that the willing buyer
5 37 is purchasing only the special purpose tooling and not
5 38 the patent covering the property which the special
5 39 purpose tooling is designed to manufacture nor the
5 40 rights to manufacture the patented property. For
5 41 purposes of this paragraph, special purpose tooling
5 42 includes dies, jigs, fixtures, molds, patterns, and
5 43 similar property. The assessor shall not take into
5 44 consideration the special value or use value to the
5 45 present owner of the special purpose tooling which is
5 46 designed and intended solely for the manufacture of
5 47 property protected by a patent in arriving at the
5 48 actual value of the special purpose tooling.
5 49 c. In determining the purchase price of a
5 50 structure, the assessor shall consider whether the
6 1 sale was a fair and reasonable exchange in the year in
6 2 which the property was listed and valued between a
6 3 willing buyer and a willing seller, neither being
6 4 under any compulsion to buy or sell and each being
6 5 familiar with all the facts relating to the particular
6 6 property. Sale prices of the property or comparable
6 7 property in normal transactions reflecting market
6 8 value, and the probable availability or unavailability
6 9 of persons interested in purchasing the property,
6 10 shall be taken into consideration in determining
6 11 purchase price. In determining purchase price, sale
6 12 prices of property in abnormal transactions not
6 13 reflecting market value shall not be taken into
6 14 account, or shall be adjusted to eliminate the effect
6 15 of factors which distort market value, including but
6 16 not limited to sales to immediate family of the
6 17 seller, foreclosure or other forced sales, contract
6 18 sales, or discounted purchase transactions.
6 19 d. If a county enters into a contract before May
6 20 1, 2003, for a comprehensive revaluation by a private
6 21 appraiser and such revaluation is for the assessment
6 22 year beginning January 1, 2006, the valuations
6 23 determined under the comprehensive revaluation for
6 24 that assessment year shall be divided by the
6 25 cumulative inflation factor for the assessment year
6 26 beginning January 1, 2006, and that quotient shall be
6 27 considered the valuation of the property for the
6 28 assessment year beginning January 1, 2005.
6 29 6. Notwithstanding any other provision of this
6 30 section, the assessed value per square foot of a
6 31 structure times the total number of square feet of the
6 32 structure shall not exceed its fair and reasonable
6 33 market value for the assessment year, except for
6 34 agricultural structures which shall be valued
6 35 exclusively as provided in subsection 4.
6 36 7. For purposes of this section:
6 37 a. "Annual inflation factor" means an index,
6 38 expressed as a percentage, determined by the
6 39 department by January 15 of the assessment year for
6 40 which the factor is determined, which reflects the
6 41 purchasing power of the dollar as a result of
6 42 inflation during the twelve=month period ending
6 43 September 30 of the calendar year preceding the
6 44 assessment year for which the factor is determined.
6 45 In determining the annual inflation factor, the
6 46 department shall use the annual percent change, but
6 47 not less than zero percent, in the gross domestic
6 48 product price deflator computed for the calendar year
6 49 by the bureau of economic analysis of the United
6 50 States department of commerce and shall add all of
7 1 that percent change to one hundred percent. The
7 2 annual inflation factor and the cumulative inflation
7 3 factor shall each be expressed as a percentage rounded
7 4 to the nearest one=tenth of one percent. The annual
7 5 inflation factor shall not be less than one hundred
7 6 percent. The annual inflation factor for the 2005
7 7 calendar year is one hundred percent.
7 8 b. "Cumulative inflation factor" means the product
7 9 of the annual inflation factor for the 2005 calendar
7 10 year and all annual inflation factors for subsequent
7 11 calendar years as determined pursuant to this
7 12 subsection. The cumulative inflation factor applies
7 13 to the assessment year beginning on January 1 of the
7 14 calendar year for which the latest annual inflation
7 15 factor has been determined.
7 16 c. "Newly constructed" includes, but is not
7 17 limited to, structural replacement, additions that
7 18 substantially increase the square footage, conversion
7 19 into another class of property, and conversion from
7 20 exempt property under section 427.1 to taxable
7 21 property. For commercial and industrial property,
7 22 "newly constructed" also includes an addition or
7 23 removal to a structure of personal property taxed as
7 24 real estate under chapter 427A.
7 25 d. "Structure" means any part of that which is
7 26 built or constructed, an edifice or building of any
7 27 kind, or any piece of work artificially built up or
7 28 composed of parts joined together in some definite
7 29 manner. For residential structures, structure
7 30 includes only those parts of the structure, including
7 31 basements and attics, that are or could be used as
7 32 living space. "Structure" does not include the land
7 33 beneath, or horizontal improvements relating to the
7 34 structure, such as sidewalks, sewers, or retaining
7 35 walls.
7 36 8. For the purpose of computing the debt
7 37 limitations for municipalities, political
7 38 subdivisions, and school districts, the term "actual
7 39 value" means the "actual value" as determined under
7 40 this section without application of any percentage
7 41 reduction and entered opposite each item, and as
7 42 listed on the tax list as provided in section 443.2,
7 43 as "actual value".
7 44 Whenever any board of review or other tribunal
7 45 changes the assessed value of property, all applicable
7 46 records of assessment shall be adjusted to reflect
7 47 such change in both assessed value and actual value of
7 48 such property.
7 49 9. The provisions of this chapter and chapters
7 50 443, 443A, and 444 shall be subject to legislative
8 1 review at least once every five years. The review
8 2 shall be based upon a property tax status report
8 3 containing the recommendations of a property tax
8 4 implementation committee appointed to conduct a review
8 5 of the land tax, square footage tax, the baseline
8 6 assessment for the square footage tax, and other
8 7 related provisions, to be prepared with the assistance
8 8 of the departments of management and revenue and
8 9 finance. The report shall include recommendations for
8 10 changes or revisions based upon demographic changes
8 11 and property tax valuation fluctuations observed
8 12 during the preceding five=year interval, and a summary
8 13 of issues that have arisen since the previous review
8 14 and potential approaches for their resolution. The
8 15 first such report shall be submitted to the general
8 16 assembly no later than January 1, 2010, with
8 17 subsequent reports developed and submitted by January
8 18 1 at least every fifth year thereafter.
8 19 Sec. 4. NEW SECTION. 441.21A PROPERTY
8 20 CLASSIFICATIONS.
8 21 1. a. Agricultural land shall be valued at its
8 22 productivity value. The productivity value of
8 23 agricultural land shall be determined on the basis of
8 24 productivity and net earning capacity of the land
8 25 determined on the basis of its use for agricultural
8 26 purposes capitalized at a rate of seven percent and
8 27 applied uniformly among counties and among classes of
8 28 property. Any formula or method employed to determine
8 29 productivity and net earning capacity of land shall be
8 30 adopted in full by rule.
8 31 b. In counties or townships in which field work on
8 32 a modern soil survey has been completed since January
8 33 1, 1949, the assessor shall place emphasis upon the
8 34 results of the survey in spreading the valuation among
8 35 individual parcels of such agricultural land.
8 36 c. "Agricultural land" includes the land of a
8 37 vineyard.
8 38 2. a. "Residential property" includes all lands
8 39 and buildings which are primarily used or intended for
8 40 human habitation, including those buildings located on
8 41 agricultural land. Buildings used primarily or
8 42 intended for human habitation shall include the
8 43 dwelling as well as structures and improvements used
8 44 primarily as a part of, or in conjunction with, the
8 45 dwelling. This includes but is not limited to
8 46 garages, whether attached or detached, tennis courts,
8 47 swimming pools, guest cottages, and storage sheds for
8 48 household goods. Residential property located on
8 49 agricultural land shall include only buildings.
8 50 b. "Residential property" includes all land and
9 1 buildings of multiple housing cooperatives organized
9 2 under chapter 499A and includes land and buildings
9 3 used primarily for human habitation which land and
9 4 buildings are owned and operated by organizations that
9 5 have received tax=exempt status under section
9 6 501(c)(3) of the Internal Revenue Code and rental
9 7 income from the property is not taxed as unrelated
9 8 business income under section 422.33, subsection 1A.
9 9 c. "Residential property" includes an apartment in
9 10 a horizontal property regime referred to in chapter
9 11 499B which is used or intended for use for human
9 12 habitation regardless of who occupies the apartment.
9 13 Existing structures shall not be converted to a
9 14 horizontal property regime unless applicable building
9 15 code requirements have been met.
9 16 d. Buildings for human habitation that are used as
9 17 commercial ventures, including but not limited to
9 18 hotels, motels, rest homes, and structures containing
9 19 three or more separate living quarters shall not be
9 20 considered residential property.
9 21 Sec. 5. Section 441.23, Code 2003, is amended to
9 22 read as follows:
9 23 441.23 NOTICE OF VALUATION.
9 24 If there has been an increase or decrease in the
9 25 valuation of the property, or upon the written request
9 26 of the person assessed, the assessor shall, at the
9 27 time of making the assessment, inform the person
9 28 assessed, in writing, of the valuation put upon the
9 29 taxpayer's property, and notify the person, if the
9 30 person feels aggrieved, to appear before the board of
9 31 review and show why the assessment should be changed.
9 32 However, if the valuation of a class of agricultural
9 33 property is uniformly decreased, the assessor may
9 34 notify the affected property owners by publication in
9 35 the official newspapers of the county. The owners of
9 36 real property shall be notified not later than April
9 37 15 of any adjustment of the real property assessment.
9 38 The notification shall include a supplemental return
9 39 form for the person to list the person's property and
9 40 any additions or modifications completed in the prior
9 41 year to a structure located on the property, as
9 42 required in section 441.19.
9 43 Sec. 6. Section 441.24, Code 2003, is amended to
9 44 read as follows:
9 45 441.24 REFUSAL TO FURNISH STATEMENT.
9 46 1. If a person refuses to furnish the verified
9 47 statements required in connection with the assessment
9 48 of property by the assessor, or to list the
9 49 corporation's or person's property, the director of
9 50 revenue and finance, or assessor, as the case may be,
10 1 shall proceed to list and assess the property
10 2 according to the best information obtainable, and
10 3 shall add to the taxable agricultural land and square
10 4 footage valuation one hundred percent thereof, which
10 5 valuation and penalty shall be separately shown, and
10 6 shall constitute the assessment; and if the
10 7 agricultural land or square footage valuation of the
10 8 property is changed by a board of review, or on appeal
10 9 from a board of review, a like penalty shall be added
10 10 to the valuation thus fixed.
10 11 2. However, all or part of the penalty imposed
10 12 under this section may be waived by the board of
10 13 review upon application to the board by the assessor
10 14 or the property owner. The waiver or reduction in the
10 15 penalty shall be allowed only on the agricultural land
10 16 or the square footage valuation of real property the
10 17 structure against which the penalty has been imposed.
10 18 Sec. 7. Section 441.26, unnumbered paragraph 3,
10 19 Code 2003, is amended to read as follows:
10 20 The notice in 1981 2007 and each odd=numbered year
10 21 thereafter shall contain a statement that the
10 22 agricultural property assessments and property
10 23 assessed pursuant to section 441.21, subsection 2,
10 24 paragraph "b", subparagraph (1), and subsection 3,
10 25 paragraph "b", subparagraph (1), are subject to
10 26 equalization pursuant to an order issued by the
10 27 director of revenue and finance, that the county
10 28 auditor shall give notice on or before October 15 by
10 29 publication in an official newspaper of general
10 30 circulation to any class of agricultural property
10 31 affected by the equalization order, and that the board
10 32 of review shall be in session from October 15 to
10 33 November 15 to hear protests of affected property
10 34 owners or taxpayers whose valuations have been
10 35 adjusted by the equalization order.
10 36 Sec. 8. Section 441.26, unnumbered paragraphs 4
10 37 and 5, Code 2003, are amended to read as follows:
10 38 The assessment rolls shall be used in listing the
10 39 property, the number of structures, and the total
10 40 square footage of the structures by class of property,
10 41 and showing the values affixed to agricultural land
10 42 and the assessed value per square foot affixed to the
10 43 property the structures by class of property of all
10 44 persons assessed. The rolls shall be made in
10 45 duplicate. The duplicate roll shall be signed by the
10 46 assessor, detached from the original and delivered to
10 47 the person assessed if there has been an increase or
10 48 decrease in the valuation of the property. If there
10 49 has been no change in the evaluation, the information
10 50 on the roll may be printed on computer stock paper and
11 1 preserved as required by this chapter. If the person
11 2 assessed requests in writing a copy of the roll, the
11 3 copy shall be provided to the person. The pages of
11 4 the assessor's assessment book shall contain columns
11 5 ruled and headed for the information required by this
11 6 chapter and that which the director of revenue and
11 7 finance deems essential in the equalization work of
11 8 the director. The assessor shall return all
11 9 assessment rolls and schedules to the county auditor,
11 10 along with the completed assessment book, as provided
11 11 in this chapter, and the county auditor shall
11 12 carefully keep and preserve the rolls, schedules and
11 13 book for a period of five years from the time of its
11 14 filing in the county auditor's office.
11 15 Beginning with valuations for January 1, 1977 2006,
11 16 and each succeeding year, for each parcel of
11 17 agricultural property and for each structure entered
11 18 in the assessment book, the assessor shall list the
11 19 classification of the property.
11 20 Sec. 9. Section 441.35, subsection 1, Code 2003,
11 21 is amended by striking the subsection.
11 22 Sec. 10. Section 441.35, unnumbered paragraph 2,
11 23 Code 2003, is amended by striking the unnumbered
11 24 paragraph.
11 25 Sec. 11. Section 441.36, Code 2003, is amended to
11 26 read as follows:
11 27 441.36 CHANGE OF ASSESSMENT == NOTICE.
11 28 All changes in assessments authorized by the board
11 29 of review, and reasons therefor, shall be entered in
11 30 the minute book kept by said the board and on the
11 31 assessment roll. Said The minute book shall be filed
11 32 with the assessor after the adjournment of the board
11 33 of review and shall at all times be open to public
11 34 inspection. In case the value of any specific
11 35 property or structure or the entire assessment of any
11 36 person, partnership, or association is increased, or
11 37 new property or a new structure is added by the board,
11 38 the clerk shall give immediate notice thereof by mail
11 39 to each at the post=office address shown on the
11 40 assessment rolls, and at the conclusion of the action
11 41 of the board therein the clerk shall post an
11 42 alphabetical list of those whose assessments are thus
11 43 raised and added, in a conspicuous place in the office
11 44 or place of meeting of the board, and enter upon the
11 45 records a statement that such posting has been made,
11 46 which entry shall be conclusive evidence of the giving
11 47 of the notice required. The board shall hold an
11 48 adjourned meeting, with at least five days intervening
11 49 after the posting of said the notices, before final
11 50 action with reference to the raising of assessments or
12 1 the adding of property or structures to the rolls is
12 2 taken, and the posted notices shall state the time and
12 3 place of holding such adjourned meeting, which time
12 4 and place shall also be stated in the proceedings of
12 5 the board.
12 6 Sec. 12. Section 441.37, subsection 1, paragraphs
12 7 a and b, Code 2003, are amended to read as follows:
12 8 a. That said the assessment is not equitable as
12 9 compared with assessments of other like property or
12 10 structures in the taxing district. When this ground
12 11 is relied upon as the basis of a protest the legal
12 12 description and assessments of a representative number
12 13 of comparable properties structures, as described by
12 14 the aggrieved taxpayer shall be listed on the protest,
12 15 otherwise said the protest shall not be considered on
12 16 this ground.
12 17 b. That the property or structure is assessed for
12 18 more than the value authorized by law, stating the
12 19 specific amount which the protesting party believes
12 20 the property or structure to be overassessed, and the
12 21 amount which the party considers to be its actual
12 22 value and the amount the party considers a fair
12 23 assessment.
12 24 Sec. 13. Section 441.39, Code 2003, is amended to
12 25 read as follows:
12 26 441.39 TRIAL ON APPEAL.
12 27 The court shall hear the appeal in equity and
12 28 determine anew all questions arising before the board
12 29 which relate to the liability of the property or
12 30 structure to assessment or the amount thereof. The
12 31 court shall consider all of the evidence and there
12 32 shall be no presumption as to the correctness of the
12 33 valuation of assessment appealed from. Its decision
12 34 shall be certified by the clerk of the court to the
12 35 county auditor, and the assessor, who shall correct
12 36 the assessment books accordingly.
12 37 Sec. 14. Section 441.42, Code 2003, is amended to
12 38 read as follows:
12 39 441.42 APPEAL ON BEHALF OF PUBLIC.
12 40 Any officer of a county, city, township, drainage
12 41 district, levee district, or school district
12 42 interested or a taxpayer thereof may in like manner
12 43 make complaint before said the board of review in
12 44 respect to the assessment of any property or structure
12 45 in the township, drainage district, levee district or
12 46 city and an appeal from the action of the board of
12 47 review in fixing the amount of assessment on any
12 48 property or structure concerning which such complaint
12 49 is made, may be taken by any of such aforementioned
12 50 officers.
13 1 Such appeal is in addition to the appeal allowed to
13 2 the person whose property or structure is assessed and
13 3 shall be taken in the name of the county, city,
13 4 township, drainage district, levee district, or school
13 5 district interested, and tried in the same manner,
13 6 except that the notice of appeal shall also be served
13 7 upon the owner of the property or structure concerning
13 8 which the complaint is made and affected thereby or
13 9 person required to return said property or structure
13 10 for assessment.
13 11 Sec. 15. Section 441.43, Code 2003, is amended to
13 12 read as follows:
13 13 441.43 POWER OF COURT.
13 14 Upon trial of any appeal from the action of the
13 15 board of review fixing the amount of assessment upon
13 16 any property or structure concerning which complaint
13 17 is made, the court may increase, decrease, or affirm
13 18 the amount of the assessment appealed from.
13 19 Sec. 16. Section 441.45, subsections 1 and 2, Code
13 20 2003, are amended to read as follows:
13 21 1. The number of acres of land and the aggregate
13 22 taxable values of the agricultural land, exclusive of
13 23 city lots, returned by the assessors, as corrected by
13 24 the board of review.
13 25 2. The aggregate values of structures and the
13 26 taxable square footage values of real estate
13 27 structures by class in each township and city in the
13 28 county and the aggregate value of agricultural land in
13 29 each township and city in the county, returned as
13 30 corrected by the board of review.
13 31 Sec. 17. Section 441.47, Code 2003, is amended by
13 32 adding the following new unnumbered paragraph:
13 33 NEW UNNUMBERED PARAGRAPH. For the assessment year
13 34 beginning January 1, 2007, and for all subsequent
13 35 assessment years, only property classified as
13 36 agricultural property and property assessed pursuant
13 37 to section 441.21, subsection 2, paragraph "b",
13 38 subparagraph (1), and subsection 3, paragraph "b",
13 39 subparagraph (1), shall be subject to equalization by
13 40 the director of revenue and finance under this section
13 41 and sections 441.48 and 441.49.
13 42 Sec. 18. NEW SECTION. 441.47A EQUALIZATION OF
13 43 INFLATION FACTORS.
13 44 The director of revenue and finance on or about
13 45 August 15, 2007, and every two years thereafter, shall
13 46 order the equalization of the assessed value per
13 47 square foot resulting from the application of the
13 48 cumulative inflation factor in the several assessing
13 49 jurisdictions in each case as may be necessary to
13 50 bring such values as fixed by the assessor in cases of
14 1 purchases of property and newly constructed property
14 2 to the values determined for the assessment year
14 3 beginning January 1, 2005. In equalizing the effects
14 4 of the application of the cumulative inflation factor,
14 5 the department shall make use of reports issued by
14 6 Iowa state university of science and technology which
14 7 reports shall more precisely indicate, on a county=by=
14 8 county basis, annual and cumulative inflation factors
14 9 for each county. If the cumulative inflation factor
14 10 for an assessing jurisdiction as reported by Iowa
14 11 state university of science and technology is five
14 12 percent above or below the cumulative inflation factor
14 13 as defined in section 441.21, subsection 7, the
14 14 director shall notify the assessor by mail of the
14 15 equalization of the effects of the cumulative
14 16 inflation factor for the assessing jurisdiction. The
14 17 assessor shall recompute the assessments made pursuant
14 18 to section 441.21, subsection 2, paragraph "b",
14 19 subparagraph (1), subsection 3, paragraph "b",
14 20 subparagraph (1), and subsection 4, paragraph "b",
14 21 subparagraph (1), by applying the equalized inflation
14 22 factor. The assessor shall send notice of the
14 23 equalized assessments to all affected property owners.
14 24 Sec. 19. Section 441.50, Code 2003, is amended to
14 25 read as follows:
14 26 441.50 APPRAISERS EMPLOYED.
14 27 The conference board shall have power to employ
14 28 appraisers or other technical or expert help to assist
14 29 in the valuation assessment of property as provided in
14 30 section 441.21, the cost thereof to be paid in the
14 31 same manner as other expenses of the assessor's
14 32 office. The conference board may certify for levy
14 33 annually an amount not to exceed forty and one=half
14 34 cents per thousand dollars of assessed value of
14 35 taxable property for the purpose of establishing a
14 36 special appraiser's fund, to be used only for such
14 37 purposes. From time to time the conference board may
14 38 direct the transfer of any unexpended balance in the
14 39 special appraiser's fund to the assessment expense
14 40 fund.
14 41 Sec. 20. Section 443.1, Code 2003, is amended to
14 42 read as follows:
14 43 443.1 CONSOLIDATED TAX.
14 44 All square footage taxes which are uniform
14 45 throughout any township or school district shall be
14 46 formed into a single tax and entered upon the tax list
14 47 in a single column, to be known as a consolidated tax,
14 48 and each receipt shall show the percentage levied for
14 49 each separate fund. The land tax shall be separately
14 50 stated and each receipt shall show the percentage
15 1 levied for each separate fund.
15 2 Sec. 21. Section 443.2, Code 2003, is amended to
15 3 read as follows:
15 4 443.2 TAX LIST.
15 5 Before the first day of July in each year, the
15 6 county auditor shall transcribe the assessments of the
15 7 townships and cities into a book or record, to be
15 8 known as the tax list, properly ruled and headed, with
15 9 separate columns, in which shall be entered the names
15 10 of the taxpayers, descriptions of lands, number of
15 11 acres and value, numbers of city lots, their size in
15 12 acres, and value, and each description of the square
15 13 footage tax and the land tax, with a column for polls
15 14 and one for payments, and shall complete it by
15 15 entering the amount due on each installment,
15 16 separately, and carrying out the total of both
15 17 installments. The total of all columns of each page
15 18 of each book or other record shall balance with the
15 19 tax totals. After computing the amount of land tax
15 20 and square footage tax due and payable on each
15 21 property, the county auditor shall round the total
15 22 amount of tax taxes due and payable on the property to
15 23 the nearest even whole dollar.
15 24 The county auditor shall list the aggregate actual
15 25 value and the aggregate taxable value of all taxable
15 26 property within the county and each political
15 27 subdivision including property subject to the
15 28 statewide property tax imposed under section 437A.18
15 29 on the tax list in order that the actual value of the
15 30 taxable property within the county or a political
15 31 subdivision may be ascertained and shown by the tax
15 32 list for the purpose of computing the debt=incurring
15 33 capacity of the county or political subdivision. As
15 34 used in this section, "actual value" is the value
15 35 determined under section 441.21, subsections 1 to 3,
15 36 Code 2005, prior to the reduction to a percentage of
15 37 actual value as otherwise provided in section 441.21,
15 38 Code 2005. "Actual value" of property subject to
15 39 statewide property tax is the assessed value under
15 40 section 437A.18.
15 41 Sec. 22. Section 443.3, Code 2003, is amended to
15 42 read as follows:
15 43 443.3 CORRECTION == TAX APPORTIONED.
15 44 At the time of transcribing said the assessments
15 45 into the tax list, the county auditor shall correct
15 46 all transfers up to date and place the legal
15 47 descriptions of all real estate in the name of the
15 48 owner at said that date as shown by the transfer book
15 49 in the auditor's office. At the end of the list for
15 50 each township or city the auditor shall make an
16 1 abstract thereof, and apportion the consolidated tax
16 2 among the respective funds to which it belongs,
16 3 according to the amounts levied for each. The auditor
16 4 shall apportion the land tax as prescribed in section
16 5 443A.2.
16 6 Sec. 23. Section 443.6, Code 2003, is amended to
16 7 read as follows:
16 8 443.6 CORRECTIONS BY AUDITOR.
16 9 The auditor may correct any error in the assessment
16 10 or tax list, and the assessor or auditor may list for
16 11 taxation any omitted land and may assess and list for
16 12 taxation any omitted property structure.
16 13 Sec. 24. Section 443.7, Code 2003, is amended to
16 14 read as follows:
16 15 443.7 NOTICE.
16 16 Before listing for taxation any omitted land and
16 17 before assessing and listing for taxation any omitted
16 18 property structure, the assessor or auditor shall
16 19 notify by mail the person in whose name the property
16 20 land or structure is taxed, to appear before the
16 21 assessor or auditor at the assessor's or auditor's
16 22 office within ten days from the date of the notice and
16 23 show cause, if any, why the correction or assessment
16 24 should not be made.
16 25 Sec. 25. Section 443.9, Code 2003, is amended to
16 26 read as follows:
16 27 443.9 ADJUSTMENT OF ACCOUNTS.
16 28 If such correction or assessment is made after the
16 29 books or other records approved by the state auditor
16 30 of state have passed into the hands of the treasurer,
16 31 the treasurer shall be charged or credited therefor as
16 32 the case may be. In the event such listing of omitted
16 33 land or listing and assessment of omitted property
16 34 structure is made by the assessor after the tax
16 35 records have passed into the hands of the auditor or
16 36 treasurer, such correction or assessment shall be
16 37 entered on the records by the auditor or treasurer.
16 38 Sec. 26. Section 443.12, Code 2003, is amended to
16 39 read as follows:
16 40 443.12 CORRECTIONS BY TREASURER.
16 41 When property land or a structure subject to
16 42 taxation is withheld, overlooked, or from any other
16 43 cause is not listed, or is not listed and assessed,
16 44 the county treasurer shall, when apprised thereof, at
16 45 any time within two years from the date at which such
16 46 listing and assessment should have been made, demand
16 47 of the person, firm, corporation, or other party by
16 48 whom the same should have been listed, or to whom it
16 49 should have been listed and assessed, or of the
16 50 administrator thereof, the amount the property land or
17 1 structure should have been taxed in each year the same
17 2 was so withheld or overlooked and not listed or not
17 3 listed and assessed, together with six percent
17 4 interest thereon from the time the taxes would have
17 5 become due and payable had such property land been
17 6 listed or such structure been listed and assessed.
17 7 Sec. 27. Section 443.13, Code 2003, is amended to
17 8 read as follows:
17 9 443.13 ACTION BY TREASURER == APPORTIONMENT.
17 10 Upon failure to pay such sum within thirty days,
17 11 with all accrued interest, the treasurer shall cause
17 12 an action to be brought in the name of the treasurer
17 13 for the use of the proper county, to be prosecuted by
17 14 the county attorney, or such other person as the board
17 15 of supervisors may appoint, and when such property
17 16 land has been fraudulently withheld from listing or
17 17 such structure fraudulently withheld from listing and
17 18 assessment, there shall be added to the sum found to
17 19 be due a penalty of fifty percent upon the amount,
17 20 which shall be included in the judgment. The amount
17 21 thus recovered shall be by the treasurer apportioned
17 22 ratably as the taxes would have been if they had been
17 23 paid according to law.
17 24 Sec. 28. Section 443.14, Code 2003, is amended to
17 25 read as follows:
17 26 443.14 DUTY OF TREASURER.
17 27 The treasurer shall assess any real property
17 28 structure and shall list the acreage of any land
17 29 subject to taxation which may have been omitted by the
17 30 assessor, board of review, or county auditor, and
17 31 collect taxes thereon, and in such cases shall note,
17 32 opposite the tract or lot assessed, the words "by
17 33 treasurer".
17 34 Sec. 29. Section 443.15, Code 2003, is amended to
17 35 read as follows:
17 36 443.15 TIME LIMIT.
17 37 The assessment shall be made within two years after
17 38 the tax list shall have been delivered to the
17 39 treasurer for collection, and not afterwards, if the
17 40 property land or structure is then owned by the person
17 41 who should have paid the tax.
17 42 Sec. 30. Section 443.17, Code 2003, is amended to
17 43 read as follows:
17 44 443.17 PRESUMPTION OF TWO=YEAR OWNERSHIP.
17 45 In any action or proceeding, now pending or
17 46 hereafter brought, to recover taxes upon property land
17 47 not listed or agricultural land or a structure not
17 48 listed and assessed for taxation during the lifetime
17 49 of any decedent, it shall be presumed that any
17 50 property, any evidence of ownership of property, and
18 1 any evidence of a promise to pay, owned by a decedent
18 2 at the date of the decedent's death, had been acquired
18 3 and owned by such decedent more than two years before
18 4 the date of the decedent's death; and the burden of
18 5 proving that any such property had been acquired by
18 6 such decedent less than two years before the date of
18 7 the decedent's death shall be upon the heirs,
18 8 legatees, and legal representatives of any such
18 9 decedent.
18 10 Sec. 31. Section 443.18, Code 2003, is amended to
18 11 read as follows:
18 12 443.18 REAL ESTATE == DUTY OF OWNER.
18 13 In all cases where real estate land subject to
18 14 taxation has not been listed or agricultural land or a
18 15 structure subject to taxation has not been listed and
18 16 assessed, the owner, or an agent of the owner, shall
18 17 have the same done by the treasurer, and pay the taxes
18 18 thereon; and if the owner fails to do so the treasurer
18 19 shall list or list and assess the same and collect the
18 20 tax assessed as the treasurer does other taxes.
18 21 Sec. 32. Section 443.19, Code 2003, is amended to
18 22 read as follows:
18 23 443.19 IRREGULARITIES, ERRORS AND OMISSIONS ==
18 24 EFFECT.
18 25 No A failure of the owner to have such property
18 26 land listed or agricultural land or structure listed
18 27 and assessed or to have the errors in the listing or
18 28 assessment corrected, and no an irregularity, error or
18 29 omission in the listing of such land or listing and
18 30 assessment of such property agricultural land or
18 31 structure, shall not affect in any manner the legality
18 32 of the taxes levied thereon, or affect any right or
18 33 title to such real estate property which would have
18 34 accrued to any party claiming or holding under and by
18 35 virtue of a deed executed by the treasurer as provided
18 36 by this title, had the listing and assessment of such
18 37 property been in all respects regular and valid.
18 38 Sec. 33. Section 443.21, Code 2003, is amended to
18 39 read as follows:
18 40 443.21 ASSESSMENTS CERTIFIED TO COUNTY AUDITOR.
18 41 All assessors and assessing bodies, including the
18 42 department of revenue and finance having authority
18 43 over the listing of land or listing and assessment of
18 44 property agricultural land and structures for tax
18 45 purposes shall certify to the county auditor of each
18 46 county the number of acres of land and the assessed
18 47 values of agricultural land and structures for all the
18 48 taxable property in such county as finally equalized
18 49 and determined, and the same shall be transcribed onto
18 50 the tax lists as required by section 443.2.
19 1 Sec. 34. Section 443.22, Code 2003, is amended to
19 2 read as follows:
19 3 443.22 UNIFORM ASSESSMENTS MANDATORY.
19 4 All assessors and assessing bodies, including the
19 5 department of revenue and finance having authority
19 6 over the listing of land and listing and assessment of
19 7 property agricultural land and structures for tax
19 8 purposes, shall comply with sections 428.4, 428.29,
19 9 434.15, 438.13, 441.21, and 441.45. The department of
19 10 revenue and finance, having authority over the listing
19 11 and assessments, shall exercise its powers and perform
19 12 its duties under section 421.17 and other applicable
19 13 laws so as to require the uniform and consistent
19 14 application of said that section.
19 15 Sec. 35. NEW SECTION. 443A.1 LAND TAX.
19 16 Effective for the fiscal year beginning July 1,
19 17 2007, and all subsequent fiscal years, a land tax
19 18 shall be imposed against each acre or portion of an
19 19 acre of land in a county.
19 20 Sec. 36. NEW SECTION. 443A.2 APPORTIONMENT OF
19 21 LAND TAX.
19 22 1. The land tax for each county shall be
19 23 apportioned as follows:
19 24 In the unincorporated area of the county, the land
19 25 tax shall be distributed to the county, the school
19 26 district located in the unincorporated area of the
19 27 county, and other taxing entities located in the
19 28 unincorporated area of the county in the same
19 29 proportion that property taxes levied in the
19 30 unincorporated area of the county for the fiscal year
19 31 beginning July 1, 2006, were allocated to those
19 32 entities.
19 33 In the incorporated areas of the county, the land
19 34 tax shall be distributed to the city, the county, each
19 35 school district located within the city, and other
19 36 taxing entities located within the city in the same
19 37 proportion that property taxes levied in the city for
19 38 the fiscal year beginning July 1, 2006, were allocated
19 39 to those entities.
19 40 2. The city finance committee and the county
19 41 finance committee shall jointly determine the
19 42 adjustments to be made to the allocation of the land
19 43 tax in the case of boundary adjustments made to a
19 44 taxing district on or after January 1, 2006.
19 45 3. After the auditor has computed the amount of
19 46 land tax to be distributed to each taxing district,
19 47 the auditor shall compute the rate of tax to be levied
19 48 upon the square footage valuation of structures
19 49 pursuant to chapter 444.
19 50 Sec. 37. Section 444.1, Code 2003, is amended to
20 1 read as follows:
20 2 444.1 BASIS FOR AMOUNT OF TAX.
20 3 In all taxing districts in the state, including
20 4 townships, school districts, cities and counties, when
20 5 by law then existing the people are authorized to
20 6 determine by vote, or officers are authorized to
20 7 estimate or determine, a rate of taxation required for
20 8 any public purpose, such rate shall in all cases be
20 9 estimated and based upon the amount of land tax
20 10 available to the district and the adjusted taxable
20 11 square footage valuation of such taxing district for
20 12 the preceding calendar year.
20 13 Sec. 38. Section 444.2, Code 2003, is amended to
20 14 read as follows:
20 15 444.2 AMOUNTS CERTIFIED IN DOLLARS.
20 16 When an authorized square footage tax rate within a
20 17 taxing district, including townships, school
20 18 districts, cities and counties, has been thus
20 19 determined as provided by law, the officer or officers
20 20 charged with the duty of certifying the authorized
20 21 rate to the county auditor or board of supervisors
20 22 shall, before certifying the rate, compute upon the
20 23 adjusted taxable square footage valuation of the
20 24 taxing district for the preceding fiscal year, the
20 25 amount of tax the rate will raise, stated in dollars,
20 26 and shall certify the computed amount in dollars and
20 27 not by rate, to the county auditor and board of
20 28 supervisors and shall further certify the percentage
20 29 of such amount to be levied against each class of
20 30 property.
20 31 Sec. 39. Section 444.3, Code 2003, is amended to
20 32 read as follows:
20 33 444.3 COMPUTATION OF SQUARE FOOTAGE RATE.
20 34 When the square footage valuations for the several
20 35 taxing districts shall have been adjusted by the
20 36 several boards for the current year, and the amount of
20 37 land tax to be distributed to each taxing district has
20 38 been deducted from the dollar amounts certified in
20 39 section 444.2 for each taxing district, the county
20 40 auditor shall thereupon apply such a rate, not
20 41 exceeding the rate authorized by law, or rates as will
20 42 raise the amount required for such taxing district,
20 43 and when combined with the land tax amount will raise
20 44 an amount not exceeding the dollar amount authorized
20 45 by law for the taxing district, and no will not raise
20 46 a larger amount. For purposes of computing the square
20 47 footage rate under this section, the adjusted taxable
20 48 square footage valuation of the property of a taxing
20 49 district does not include the valuation of property of
20 50 a railway corporation or its trustee which corporation
21 1 has been declared bankrupt or is in bankruptcy
21 2 proceedings. Nothing in the preceding sentence
21 3 exempts the property of such railway corporation or
21 4 its trustee from taxation and the rate computed under
21 5 this section shall be levied on the taxable property
21 6 of such railway corporation or its trustee.
21 7 The square footage tax rate shall be expressed in
21 8 dollars and cents per one hundred dollars of valuation
21 9 per square foot.
21 10 Sec. 40. NEW SECTION. 444.9 COMPUTATION OF TAX.
21 11 The amount of tax imposed on any taxable property
21 12 is the sum of the amounts computed in subsections 1
21 13 and 2.
21 14 1. LAND TAX. The product of the land tax rate
21 15 times the number of acres or portion of an acre of the
21 16 taxable property.
21 17 2. SQUARE FOOTAGE TAX. The product of the square
21 18 footage tax rate times the valuation per square foot
21 19 of the taxable structure times the number of square
21 20 feet of the taxable structure. The square footage tax
21 21 shall be computed separately for each structure
21 22 located on the land.
21 23 Sec. 41. PROPERTY TAX IMPLEMENTATION COMMITTEE.
21 24 1. On or before July 1, 2003, the department of
21 25 revenue and finance, in consultation with the
21 26 department of management, shall initiate and
21 27 coordinate the establishment of a property tax
21 28 implementation committee and provide staffing
21 29 assistance to the committee. The property tax
21 30 implementation committee shall include four members of
21 31 the general assembly, one each appointed by the
21 32 majority leader of the senate, the speaker of the
21 33 house of representatives, the minority leader of the
21 34 senate, and the minority leader of the house of
21 35 representatives. The committee shall also include
21 36 members appointed by the department of revenue and
21 37 finance representing the department of revenue and
21 38 finance, the department of management, counties,
21 39 cities, school districts, local assessors, commercial
21 40 property taxpayers, industrial property taxpayers,
21 41 residential property taxpayers, and agricultural
21 42 property taxpayers, and other appropriate
21 43 stakeholders. The department may consider
21 44 participation on the committee of former state
21 45 officials with expertise in budget and tax policy.
21 46 The chairpersons of the committee shall be those
21 47 members of the general assembly appointed by the
21 48 majority leader of the senate and the speaker of the
21 49 house of representatives.
21 50 2. The committee shall study and make
22 1 recommendations relating to the land tax, square
22 2 footage tax, the baseline assessment for the square
22 3 footage tax, and other related provisions. The
22 4 committee shall also study and make recommendations on
22 5 issues relating to implementation of a land tax and
22 6 square footage tax, including, but not limited to,
22 7 whether or not maximum square footage rates and land
22 8 tax rates should be imposed and, if such rates are
22 9 recommended, the imposition of rates that have a
22 10 revenue neutral impact on classes of property, the
22 11 property tax financing portion of the school funding
22 12 formula, treatment of current property tax credits and
22 13 exemptions under a land tax and square footage tax and
22 14 continued state reimbursement of any credits or
22 15 exemptions, implementation of urban revitalization and
22 16 urban renewal programs under the land tax and square
22 17 footage tax, implementation of a payment in lieu of
22 18 taxes program for local government services, and
22 19 maintenance of equity among classes of taxpayers and
22 20 among taxpayers within the same class. The property
22 21 tax implementation committee shall also study the role
22 22 of property taxes in funding local government services
22 23 and the types of services currently funded by property
22 24 taxes.
22 25 3. The property tax implementation committee shall
22 26 direct three counties and cities within those counties
22 27 to submit data as prescribed by the committee. The
22 28 department of revenue and finance, in consultation
22 29 with the department of management, shall select the
22 30 three counties and the cities within those counties
22 31 that will be required to provide data to the
22 32 committee. The committee shall devise a system for
22 33 testing the data, including the necessary computer
22 34 hardware and software to allow the selected counties
22 35 and cities to prepare projected budgets, to determine
22 36 the rates for the land tax and the square footage tax
22 37 for those projected budgets, and to provide a sampling
22 38 of the effect on the various classes of property in
22 39 those jurisdictions. The committee shall use the data
22 40 and the results of the projections to resolve, and
22 41 make recommendations relating to, the issues described
22 42 in subsection 2, and related issues, in a revenue
22 43 neutral manner that will not result in a shift of
22 44 property tax burden between classes of property. The
22 45 committee shall submit to the general assembly by
22 46 October 31, 2003, October 31, 2004, and October 31,
22 47 2005, a report for each of those years resolving the
22 48 issues in subsection 2 and other related issues for
22 49 implementation of this Act. The reports shall include
22 50 detailed estimates of the cost to the counties and
23 1 cities of providing the data and an estimate of the
23 2 cost of statewide implementation of this Act.
23 3 Sec. 42. EFFECTIVE AND APPLICABILITY DATES.
23 4 1. The section of this division of this Act
23 5 establishing the property tax implementation
23 6 committee, being deemed of immediate importance, takes
23 7 effect upon enactment.
23 8 2. The remainder of this division of this Act
23 9 takes effect July 1, 2005, and applies to assessment
23 10 years beginning on or after January 1, 2006, and
23 11 applies to tax collections for fiscal years beginning
23 12 on or after July 1, 2007.
23 13 Sec. 43. FUTURE REPEAL. This division of this Act
23 14 is repealed effective June 30, 2005.
23 15 DIVISION II
23 16 INDIVIDUAL INCOME TAX
23 17 2004=2006 TAX YEARS
23 18 Sec. 44. Section 422.5, subsection 1, paragraphs a
23 19 through i, Code 2003, are amended to read as follows:
23 20 For tax years beginning
23 21 in the calendar year:
23 22 2004 2005 2006
23 23 a. On all taxable income from
23 24 zero through one thousand dollars,
23 25 thirty=six hundredths of one
23 26 percent.: ............................. .35% .34% .33%
23 27 b. On all taxable income exceeding
23 28 one thousand dollars but not
23 29 exceeding two thousand dollars,
23 30 seventy=two hundredths of one
23 31 percent.: ............................. .71% .68% .65%
23 32 c. On all taxable income exceeding
23 33 two thousand dollars but not
23 34 exceeding four thousand dollars,
23 35 two and forty=three hundredths
23 36 percent.: ............................ 2.39% 2.30% 2.21%
23 37 d. On all taxable income exceeding
23 38 four thousand dollars but not
23 39 exceeding nine thousand dollars,
23 40 four and one=half percent.: .......... 4.42% 4.25% 4.09%
23 41 e. On all taxable income exceeding
23 42 nine thousand dollars but not
23 43 exceeding fifteen thousand
23 44 dollars, six and twelve hundredths
23 45 percent.: ............................ 6.01% 5.78% 5.56%
23 46 f. On all taxable income exceeding
23 47 fifteen thousand dollars but not
23 48 exceeding twenty thousand
23 49 dollars, six and forty=eight hundredths
23 50 percent.: ............................ 6.36% 6.12% 5.88%
24 1 g. On all taxable income exceeding
24 2 twenty thousand dollars but not
24 3 exceeding thirty thousand
24 4 dollars, six and eight=tenths
24 5 percent.: ............................ 6.68% 6.42% 6.17%
24 6 h. On all taxable income exceeding
24 7 thirty thousand dollars but not
24 8 exceeding forty=five thousand
24 9 dollars, seven and ninety=two hundredths
24 10 percent.: ............................ 7.78% 7.48% 7.19%
24 11 i. On all taxable income exceeding
24 12 forty=five thousand dollars, eight
24 13 and ninety=eight hundredths
24 14 percent.: ............................ 8.82% 8.48% 8.15%
24 15 Sec. 45. EFFECTIVE AND APPLICABILITY DATE
24 16 PROVISIONS. This division of this Act takes effect
24 17 January 1, 2004, for tax years beginning on or after
24 18 January 1, 2004, but before January 1, 2007.
24 19 DIVISION III
24 20 INDIVIDUAL INCOME TAX
24 21 2007 AND SUBSEQUENT TAX YEARS
24 22 Sec. 46. Section 422.5, subsection 1, paragraphs a
24 23 through i, Code 2003, are amended to read as follows:
24 24 For tax years beginning
24 25 in the calendar year:
24 26 2007 and subsequent
24 27 calendar years
24 28 a. On all taxable income from
24 29 zero through one thousand dollars,
24 30 thirty=six hundredths of one
24 31 percent.: ............................. .31%
24 32 b. On all taxable income exceeding
24 33 one thousand dollars but not
24 34 exceeding two thousand dollars,
24 35 seventy=two hundredths of one
24 36 percent.: ............................. .61%
24 37 c. On all taxable income exceeding
24 38 two thousand dollars but not
24 39 exceeding four thousand dollars,
24 40 two and forty=three hundredths
24 41 percent.: ............................ 2.06%
24 42 d. On all taxable income exceeding
24 43 four thousand dollars but not
24 44 exceeding nine thousand dollars,
24 45 four and one=half percent.: .......... 3.81%
24 46 e. On all taxable income exceeding
24 47 nine thousand dollars but not
24 48 exceeding fifteen thousand
24 49 dollars, six and twelve hundredths
24 50 percent.: ............................ 5.19%
25 1 f. On all taxable income exceeding
25 2 fifteen thousand dollars but not
25 3 exceeding twenty thousand
25 4 dollars, six and forty=eight hundredths
25 5 percent.: ............................ 5.49%
25 6 g. On all taxable income exceeding
25 7 twenty thousand dollars but not
25 8 exceeding thirty thousand
25 9 dollars, six and eight=tenths
25 10 percent.: ............................ 5.76%
25 11 h. On all taxable income exceeding
25 12 thirty thousand dollars but not
25 13 exceeding forty=five thousand
25 14 dollars, seven and ninety=two hundredths
25 15 percent.: ............................ 6.71%
25 16 i. On all taxable income exceeding
25 17 forty=five thousand dollars, eight
25 18 and ninety=eight hundredths
25 19 percent.: ............................ 7.61%
25 20 Sec. 47. EFFECTIVE AND APPLICABILITY DATE
25 21 PROVISIONS. This division of this Act takes effect
25 22 January 1, 2007, for tax years beginning on or after
25 23 January 1, 2007.
25 24 DIVISION IV
25 25 INDIVIDUAL INCOME TAX
25 26 2007 AND SUBSEQUENT TAX YEARS
25 27 Sec. 48. Section 422.4, subsection 1, paragraphs b
25 28 and c, Code 2003, are amended to read as follows:
25 29 b. "Cumulative inflation factor" means the product
25 30 of the annual inflation factor for the 1988 2007
25 31 calendar year and all annual inflation factors for
25 32 subsequent calendar years as determined pursuant to
25 33 this subsection. The cumulative inflation factor
25 34 applies to all tax years beginning on or after January
25 35 1 of the calendar year for which the latest annual
25 36 inflation factor has been determined.
25 37 c. The annual inflation factor for the 1988 2007
25 38 calendar year is one hundred percent.
25 39 Sec. 49. Section 422.4, subsection 16, Code 2003,
25 40 is amended to read as follows:
25 41 16. The words "taxable "Taxable income" mean means
25 42 the net income as defined in section 422.7 minus the
25 43 deductions allowed by section 422.9, in the case of
25 44 individuals; in. In the case of estates or trusts,
25 45 the words "taxable income" mean means the taxable
25 46 income, (without a deduction for personal exemption),
25 47 as computed for federal income tax purposes under the
25 48 Internal Revenue Code, but with the adjustments
25 49 specified in section 422.7 plus the Iowa income tax
25 50 deducted in computing the federal taxable income and
26 1 minus federal income taxes as provided in section
26 2 422.9.
26 3 Sec. 50. Section 422.5, subsection 1, Code 2003,
26 4 as amended by 2003 Iowa Acts, Senate File 442, section
26 5 4, is amended by striking the subsection and inserting
26 6 in lieu thereof the following:
26 7 1. a. A tax is imposed upon every resident and
26 8 nonresident of the state which tax shall be levied,
26 9 collected, and paid annually upon and with respect to
26 10 the entire taxable income at rates as follows:
26 11 (1) On all taxable income from zero through eight
26 12 thousand dollars, two and five hundredths percent.
26 13 (2) On all taxable income exceeding eight thousand
26 14 dollars but not exceeding one hundred thousand
26 15 dollars, four and sixty=five hundredths percent.
26 16 (3) On all taxable income exceeding one hundred
26 17 thousand dollars, four and nine=tenths percent.
26 18 b. (1) The tax imposed upon the taxable income of
26 19 a nonresident shall be computed by reducing the amount
26 20 determined pursuant to paragraph "a" by the amounts of
26 21 nonrefundable credits under this division and by
26 22 multiplying this resulting amount by a fraction of
26 23 which the nonresident's net income allocated to Iowa,
26 24 as determined in section 422.8, subsection 2,
26 25 paragraph "a", is the numerator and the nonresident's
26 26 total net income computed under section 422.7 is the
26 27 denominator. This provision also applies to
26 28 individuals who are residents of Iowa for less than
26 29 the entire tax year.
26 30 (2) The tax imposed upon the taxable income of a
26 31 resident shareholder in an S corporation which has in
26 32 effect for the tax year an election under subchapter S
26 33 of the Internal Revenue Code and carries on business
26 34 within and without the state may be computed by
26 35 reducing the amount determined pursuant to paragraph
26 36 "a" by the amounts of nonrefundable credits under this
26 37 division and by multiplying this resulting amount by a
26 38 fraction of which the resident's net income allocated
26 39 to Iowa, as determined in section 422.8, subsection 2,
26 40 paragraph "b", is the numerator and the resident's
26 41 total net income computed under section 422.7 is the
26 42 denominator. If a resident shareholder has elected to
26 43 take advantage of this subparagraph, and for the next
26 44 tax year elects not to take advantage of this
26 45 subparagraph, the resident shareholder shall not
26 46 reelect to take advantage of this subparagraph for the
26 47 three tax years immediately following the first tax
26 48 year for which the shareholder elected not to take
26 49 advantage of this subparagraph, unless the director
26 50 consents to the reelection. This subparagraph also
27 1 applies to individuals who are residents of Iowa for
27 2 less than the entire tax year.
27 3 Sec. 51. Section 422.5, subsection 2, Code 2003,
27 4 is amended by striking the subsection and inserting in
27 5 lieu thereof the following:
27 6 2. a. However, if the married persons' filing
27 7 jointly or separately on a combined return, unmarried
27 8 head of household's, or surviving spouse's net income
27 9 exceeds thirteen thousand five hundred dollars or nine
27 10 thousand dollars in the case of all other persons, the
27 11 regular tax imposed under this division shall be the
27 12 lesser of the product of eight percent times the
27 13 portion of the net income in excess of thirteen
27 14 thousand five hundred dollars or nine thousand
27 15 dollars, as applicable, or the regular tax liability
27 16 computed without regard to this paragraph.
27 17 b. Paragraph "a" does not apply to estates and
27 18 trusts. Married taxpayers electing to file separately
27 19 shall compute the alternate tax described in paragraph
27 20 "a" using the total net income of the husband and
27 21 wife. The alternate tax described in paragraph "a"
27 22 does not apply if one spouse elects to carry back or
27 23 carry forward the loss as provided in section 422.9,
27 24 subsection 3. A person who is claimed as a dependent
27 25 by another person as defined in section 422.12 shall
27 26 not receive the benefit of paragraph "a" if the person
27 27 claiming the dependent has net income exceeding
27 28 thirteen thousand five hundred dollars or nine
27 29 thousand dollars as applicable or the person claiming
27 30 the dependent and the person's spouse have combined
27 31 net income exceeding thirteen thousand five hundred
27 32 dollars or nine thousand dollars as applicable.
27 33 Sec. 52. Section 422.5, subsection 5, Code 2003,
27 34 is amended to read as follows:
27 35 5. Upon determination of the latest cumulative
27 36 inflation factor, the director shall multiply each
27 37 dollar amount set forth in subsection 1, paragraphs
27 38 "a" through "i" of this section paragraph "a", by this
27 39 cumulative inflation factor, shall round off the
27 40 resulting product to the nearest one dollar, and shall
27 41 incorporate the result into the income tax forms and
27 42 instructions for each tax year.
27 43 Sec. 53. Section 422.5, subsection 7, Code 2003,
27 44 is amended by striking the subsection.
27 45 Sec. 54. Section 422.7, Code 2003, as amended by
27 46 2003 Iowa Acts, Senate File 442, section 5, and House
27 47 File 674, sections 5 and 6, is amended by striking the
27 48 section and inserting in lieu thereof the following:
27 49 422.7 "NET INCOME" == HOW COMPUTED.
27 50 The term "net income" means the adjusted gross
28 1 income before the net operating loss deduction as
28 2 properly computed for federal income tax purposes
28 3 under the Internal Revenue Code, with the following
28 4 adjustments:
28 5 1. The adjusted gross income is adjusted by adding
28 6 the sum of the following:
28 7 a. Add the amount of federal income tax refunds
28 8 received in a tax year beginning on or after January
28 9 1, 2007, but before January 1, 2010, to the extent
28 10 that the federal income tax was deducted on an Iowa
28 11 individual income tax return for a tax year beginning
28 12 prior to January 1, 2007.
28 13 b. Add interest and dividends from foreign
28 14 securities and from securities of state and other
28 15 political subdivisions exempt from federal income tax
28 16 under the Internal Revenue Code.
28 17 c. Add interest and dividends from regulated
28 18 investment companies exempt from federal income tax
28 19 under the Internal Revenue Code.
28 20 d. Add, to the extent not already included, income
28 21 from the sale of obligations of the state and its
28 22 political subdivisions. Income from the sale of these
28 23 obligations is exempt from the taxes imposed by this
28 24 division only if the law authorizing these obligations
28 25 specifically exempts the income from the sale from the
28 26 state individual income tax.
28 27 e. Add the amount resulting from the cancellation
28 28 of a participation agreement refunded to the taxpayer
28 29 as a participant in the Iowa educational savings plan
28 30 trust under chapter 12D to the extent previously
28 31 deducted as a contribution to the trust.
28 32 2. The adjusted gross income is adjusted by
28 33 subtracting the sum of the following:
28 34 a. Subtract the amount of federal income taxes
28 35 paid or accrued, as the case may be, in a tax year
28 36 beginning on or after January 1, 2007, but before
28 37 January 1, 2010, to the extent the federal tax payment
28 38 is for a tax year beginning prior to January 1, 2007.
28 39 b. Subtract interest and dividends from federal
28 40 securities.
28 41 c. Subtract the loss on the sale or exchange of a
28 42 share of a regulated investment company held for six
28 43 months or less to the extent the loss was disallowed
28 44 under section 852(b)(4)(B) of the Internal Revenue
28 45 Code.
28 46 d. (1) Subtract, to the extent included, the
28 47 amount of additional social security benefits taxable
28 48 under the Internal Revenue Code for tax years
28 49 beginning on or after January 1, 1994. The amount of
28 50 social security benefits taxable as provided in
29 1 section 86 of the Internal Revenue Code, as amended up
29 2 to and including January 1, 1993, continues to apply
29 3 for state income tax purposes for tax years beginning
29 4 on or after January 1, 1994.
29 5 (2) Married taxpayers, who file a joint federal
29 6 income tax return and who elect to file separate
29 7 returns or who elect separate filing on a combined
29 8 return for state income tax purposes, shall allocate
29 9 between the spouses the amount of benefits subtracted
29 10 under subparagraph (1) from net income in the ratio of
29 11 the social security benefits received by each spouse
29 12 to the total of these benefits received by both
29 13 spouses.
29 14 e. (1) For a person who is disabled, or is fifty=
29 15 five years of age or older, or is the surviving spouse
29 16 of an individual or a survivor having an insurable
29 17 interest in an individual who would have qualified for
29 18 the exemption under this paragraph for the tax year,
29 19 subtract, to the extent included, the total amount of
29 20 a governmental or other pension or retirement pay,
29 21 including, but not limited to, defined benefit or
29 22 defined contribution plans, annuities, individual
29 23 retirement accounts, plans maintained or contributed
29 24 to by an employer, or maintained or contributed to by
29 25 a self=employed person as an employer, and deferred
29 26 compensation plans or any earnings attributable to the
29 27 deferred compensation plans, up to a maximum of six
29 28 thousand dollars for a person, other than a husband or
29 29 wife, who files a separate state income tax return and
29 30 up to a maximum of twelve thousand dollars for a
29 31 husband and wife who file a joint state income tax
29 32 return.
29 33 (2) However, a surviving spouse who is not
29 34 disabled or fifty=five years of age or older can only
29 35 exclude the amount of pension or retirement pay
29 36 received as a result of the death of the other spouse.
29 37 A husband and wife filing separate state income tax
29 38 returns or separately on a combined return are allowed
29 39 a combined maximum exclusion under this paragraph "e"
29 40 of up to the amount allowed for a husband and wife who
29 41 file a joint state income tax return. The exclusion
29 42 shall be allocated to the husband or wife in the
29 43 proportion that each spouse's respective pension and
29 44 retirement pay received bears to total combined
29 45 pension and retirement pay received.
29 46 f. Notwithstanding the method for computing income
29 47 from an installment sale under section 453 of the
29 48 Internal Revenue Code, as defined in section 422.3,
29 49 the method to be used in computing income from an
29 50 installment sale shall be the method under section 453
30 1 of the Internal Revenue Code, as amended up to and
30 2 including January 1, 2000. A taxpayer affected by
30 3 this paragraph shall make adjustments in the adjusted
30 4 gross income pursuant to rules adopted by the
30 5 director.
30 6 The adjustment to net income provided in this
30 7 paragraph "f" is repealed for tax years beginning on
30 8 or after January 1, 2002. However, to the extent that
30 9 a taxpayer using the accrual method of accounting
30 10 reported the entire capital gain from the sale or
30 11 exchange of property on the Iowa return for the tax
30 12 year beginning in the 2001 calendar year and the
30 13 capital gain was reported on the installment method on
30 14 the federal income tax return, any additional
30 15 installment from the capital gain reported for federal
30 16 income tax purposes is not to be included in net
30 17 income in tax years beginning on or after January 1,
30 18 2002.
30 19 g. Subtract, if the taxpayer is the owner of an
30 20 individual development account certified under chapter
30 21 541A at any time during the tax year, all of the
30 22 following:
30 23 (1) Contributions made to the account by persons
30 24 and entities, other than the taxpayer, as authorized
30 25 in chapter 541A.
30 26 (2) The amount of any savings refund authorized
30 27 under section 541A.3, subsection 1.
30 28 (3) Earnings from the account.
30 29 h. (1) Subtract the maximum contribution that may
30 30 be deducted for income tax purposes as a participant
30 31 in the Iowa educational savings plan trust pursuant to
30 32 section 12D.3, subsection 1, paragraph "a".
30 33 (2) Subtract, to the extent included, income from
30 34 interest and earnings received from the Iowa
30 35 educational savings plan trust created in chapter 12D.
30 36 (3) Subtract, to the extent not deducted for
30 37 federal income tax purposes, the amount of any gift,
30 38 grant, or donation made to the Iowa educational
30 39 savings plan trust for deposit in the endowment fund
30 40 of that trust.
30 41 i. Subtract, to the extent included, active duty
30 42 pay received by a person in the national guard or
30 43 armed forces military reserve for services performed
30 44 on or after August 2, 1990, pursuant to military
30 45 orders related to the Persian Gulf Conflict.
30 46 j. Subtract, to the extent included, active duty
30 47 pay received by a person in the national guard or
30 48 armed forces military reserve for service performed on
30 49 or after November 21, 1995, pursuant to military
30 50 orders related to peacekeeping in Bosnia=Herzegovina.
31 1 k. Subtract, to the extent included, the
31 2 following:
31 3 (1) Payments made to the taxpayer because of the
31 4 taxpayer's status as a victim of persecution for
31 5 racial, ethnic, or religious reasons by Nazi Germany
31 6 or any other Axis regime or as an heir of such victim.
31 7 (2) Items of income attributable to, derived from,
31 8 or in any way related to assets stolen from, hidden
31 9 from, or otherwise lost to a victim of persecution for
31 10 racial, ethnic, or religious reasons by Nazi Germany
31 11 or any other Axis regime immediately prior to, during,
31 12 and immediately after World War II, including, but not
31 13 limited to, interest on the proceeds receivable as
31 14 insurance under policies issued to a victim of
31 15 persecution for racial, ethnic, or religious reasons
31 16 by Nazi Germany or any other Axis regime by European
31 17 insurance companies immediately prior to and during
31 18 World War II. However, income from assets acquired
31 19 with such assets or with the proceeds from the sale of
31 20 such assets shall not be subtracted. This
31 21 subparagraph shall only apply to a taxpayer who was
31 22 the first recipient of such assets after recovery of
31 23 the assets and who is a victim of persecution for
31 24 racial, ethnic, or religious reasons by Nazi Germany
31 25 or any other Axis regime or is an heir of such victim.
31 26 l. Subtract, to the extent included, active duty
31 27 pay received by a person in the national guard or
31 28 armed forces military reserve for service performed on
31 29 or after January 1, 2003, pursuant to military orders
31 30 related to Operation Iraqi Freedom, Operation Noble
31 31 Eagle, and Operation Enduring Freedom.
31 32 m. Subtract, not to exceed one thousand five
31 33 hundred dollars, the overnight transportation, meals,
31 34 and lodging expenses, to the extent not reimbursed,
31 35 incurred by the taxpayer for travel away from home of
31 36 more than one hundred miles for the performance of
31 37 services by the taxpayer as a member of the national
31 38 guard or armed forces military reserve.
31 39 n. Subtract, to the extent included, military
31 40 student loan repayments received by the taxpayer
31 41 serving on active duty in the national guard or armed
31 42 forces military reserve or on active duty status in
31 43 the armed forces.
31 44 o. Subtract, to the extent not otherwise excluded,
31 45 the amount of the death gratuity payable under 10
31 46 U.S.C. } 1475=1491 for deaths occurring after
31 47 September 10, 2001.
31 48 3. a. In determining the amount of federal income
31 49 tax refunds or taxes paid or accrued under subsection
31 50 1 or 2, for tax years beginning in the 2001 calendar
32 1 year, the amount shall not be adjusted by the amount
32 2 received during the tax year of the advanced refund of
32 3 the rate reduction tax credit provided pursuant to the
32 4 federal Economic Growth and Tax Relief Reconciliation
32 5 Act of 2001, Pub. L. No. 107=16, and the advanced
32 6 refund of such credit shall not be subject to taxation
32 7 under this division.
32 8 b. In determining the amount of federal income tax
32 9 refunds or taxes paid or accrued under subsection 1 or
32 10 2, for tax years beginning in the 2002 calendar year,
32 11 the amount shall not be adjusted by the amount of the
32 12 rate reduction credit received during the tax year to
32 13 the extent that the credit is attributable to the rate
32 14 reduction credit provided pursuant to the federal
32 15 Economic Growth and Tax Relief Reconciliation Act of
32 16 2001, Pub. L. No. 107=16, and the amount of such
32 17 credit shall not be taxable under this division.
32 18 4. The additional first=year depreciation
32 19 allowance authorized in section 168(k) of the Internal
32 20 Revenue Code, as enacted by Pub. L. No. 107=147,
32 21 section 101, does not apply in computing net income
32 22 for state tax purposes. If the taxpayer has taken
32 23 such deduction in computing federal adjusted gross
32 24 income, the following adjustments shall be made:
32 25 a. Add the total amount of depreciation taken on
32 26 all property for which the election under section
32 27 168(k) of the Internal Revenue Code was made for the
32 28 tax year.
32 29 b. Subtract an amount equal to depreciation taken
32 30 on such property for the tax year using the modified
32 31 accelerated cost recovery system depreciation method
32 32 applicable under section 168 of the Internal Revenue
32 33 Code without regard to section 168(k).
32 34 c. Any other adjustments to gains or losses to
32 35 reflect the adjustments made in paragraphs "a" and "b"
32 36 pursuant to rules adopted by the director.
32 37 Sec. 55. Section 422.8, subsection 2, paragraph a,
32 38 Code 2003, is amended to read as follows:
32 39 a. Nonresident's net income allocated to Iowa is
32 40 the net income, or portion of net income, which is
32 41 derived from a business, trade, profession, or
32 42 occupation carried on within this state or income from
32 43 any property, trust, estate, or other source within
32 44 Iowa. However, income derived from a business, trade,
32 45 profession, or occupation carried on within this state
32 46 and income from any property, trust, estate, or other
32 47 source within Iowa shall not include distributions
32 48 from pensions, including defined benefit or defined
32 49 contribution plans, annuities, individual retirement
32 50 accounts, and deferred compensation plans or any
33 1 earnings attributable thereto so long as the
33 2 distribution is directly related to an individual's
33 3 documented retirement and received while the
33 4 individual is a nonresident of this state. If a
33 5 business, trade, profession, or occupation is carried
33 6 on partly within and partly without the state, only
33 7 the portion of the net income which is fairly and
33 8 equitably attributable to that part of the business,
33 9 trade, profession, or occupation carried on within the
33 10 state is allocated to Iowa for purposes of section
33 11 422.5, subsection 1, paragraph "j" "b", and section
33 12 422.13 and income from any property, trust, estate, or
33 13 other source partly within and partly without the
33 14 state is allocated to Iowa in the same manner, except
33 15 that annuities, interest on bank deposits and
33 16 interest=bearing obligations, and dividends are
33 17 allocated to Iowa only to the extent to which they are
33 18 derived from a business, trade, profession, or
33 19 occupation carried on within the state.
33 20 Sec. 56. Section 422.8, subsection 4, Code 2003,
33 21 is amended by striking the subsection.
33 22 Sec. 57. Section 422.9, subsection 1, Code 2003,
33 23 is amended to read as follows:
33 24 1. An optional standard deduction, after deduction
33 25 of federal income tax, equal to one thousand two
33 26 hundred thirty dollars for a married person who files
33 27 separately or a single person or equal to three
33 28 thousand thirty dollars for a husband and wife who
33 29 file a joint return, a surviving spouse, or an
33 30 unmarried head of household. The optional standard
33 31 deduction shall not exceed the amount remaining after
33 32 deduction of the federal income tax.
33 33 Sec. 58. Section 422.9, subsection 2, paragraph b,
33 34 Code 2003, is amended by striking the paragraph.
33 35 Sec. 59. Section 422.9, subsections 6 and 7, Code
33 36 2003, are amended by striking the subsections.
33 37 Sec. 60. Section 422.11B, subsection 1, Code 2003,
33 38 is amended to read as follows:
33 39 1. There is allowed as a credit against the tax
33 40 determined in section 422.5, subsection 1, paragraphs
33 41 "a" through "j" for a tax year an amount equal to the
33 42 minimum tax credit for that tax year.
33 43 The minimum tax credit for a tax year is the
33 44 excess, if any, of the adjusted net minimum tax
33 45 imposed for all prior tax years beginning on or after
33 46 January 1, 1987, but before January 1, 2007, over the
33 47 amount allowable as a credit under this section for
33 48 those prior tax years.
33 49 If a minimum tax credit is available to a tax
33 50 period beginning on or after January 1, 2007, the
34 1 credit can be carried over to tax years beginning on
34 2 or after January 1, 2007, but before January 1, 2010.
34 3 The minimum tax credit is limited to the tax
34 4 determined in section 422.5, subsection 1, paragraphs
34 5 "a" and "b".
34 6 Sec. 61. Section 422.13, subsection 1, paragraph
34 7 c, and subsection 1A, Code 2003, are amended to read
34 8 as follows:
34 9 c. However, if that part of the net income of a
34 10 nonresident which is allocated to Iowa pursuant to
34 11 section 422.8, subsection 2, is less than one thousand
34 12 dollars the nonresident is not required to make and
34 13 sign a return except when the nonresident is subject
34 14 to the state alternative minimum tax imposed pursuant
34 15 to section 422.5, subsection 1, paragraph "k".
34 16 1A. Notwithstanding any other provision in this
34 17 section, a resident of this state is not required to
34 18 make and file a return if the person's net income is
34 19 equal to or less than the appropriate dollar amount
34 20 listed in section 422.5, subsection 2, upon which tax
34 21 is not imposed. A nonresident of this state is not
34 22 required to make and file a return if the person's
34 23 total net income in section 422.5, subsection 1,
34 24 paragraph "j", "b", is equal to or less than the
34 25 appropriate dollar amount provided in section 422.5,
34 26 subsection 2, upon which tax is not imposed. For
34 27 purposes of this subsection, the amount of a lump sum
34 28 distribution subject to separate federal tax shall be
34 29 included in net income for purposes of determining if
34 30 a resident is required to file a return and the
34 31 portion of the lump sum distribution that is allocable
34 32 to Iowa is included in total net income for purposes
34 33 of determining if a nonresident is required to make
34 34 and file a return.
34 35 Sec. 62. Section 422.21, unnumbered paragraph 5,
34 36 Code 2003, is amended to read as follows:
34 37 The director shall determine for the 1989 2008 and
34 38 each subsequent calendar year the annual and
34 39 cumulative inflation factors for each calendar year to
34 40 be applied to tax years beginning on or after January
34 41 1 of that calendar year. The director shall compute
34 42 the new dollar amounts as specified to be adjusted in
34 43 section 422.5 by the latest cumulative inflation
34 44 factor and round off the result to the nearest one
34 45 dollar. The annual and cumulative inflation factors
34 46 determined by the director are not rules as defined in
34 47 section 17A.2, subsection 11. The director shall
34 48 determine for the 1990 calendar year and each
34 49 subsequent calendar year the annual and cumulative
34 50 standard deduction factors to be applied to tax years
35 1 beginning on or after January 1 of that calendar year.
35 2 The director shall compute the new dollar amounts of
35 3 the standard deductions specified in section 422.9,
35 4 subsection 1, by the latest cumulative standard
35 5 deduction factor and round off the result to the
35 6 nearest ten dollars. The annual and cumulative
35 7 standard deduction factors determined by the director
35 8 are not rules as defined in section 17A.2, subsection
35 9 11.
35 10 Sec. 63. Section 422.11B, Code 2003, is repealed.
35 11 COORDINATING AMENDMENTS
35 12 Sec. 64. Section 12D.9, subsection 2, Code 2003,
35 13 is amended to read as follows:
35 14 2. State income tax treatment of the Iowa
35 15 educational savings plan trust shall be as provided in
35 16 section 422.7, subsections 32, 33, and 34 subsection
35 17 1, paragraph "e", and subsection 2, paragraph "h", and
35 18 section 422.35, subsection 14.
35 19 Sec. 65. Section 217.39, Code 2003, is amended to
35 20 read as follows:
35 21 217.39 PERSECUTED VICTIMS OF WORLD WAR II ==
35 22 REPARATIONS == HEIRS.
35 23 Notwithstanding any other law of this state,
35 24 payments paid to and income from lost property of a
35 25 victim of persecution for racial, ethnic, or religious
35 26 reasons by Nazi Germany or any other Axis regime or as
35 27 an heir of such victim which is exempt from state
35 28 income tax as provided in section 422.7, subsection 35
35 29 2, paragraph "k", shall not be considered as income or
35 30 an asset for determining the eligibility for state or
35 31 local government benefit or entitlement programs. The
35 32 proceeds are not subject to recoupment for the receipt
35 33 of governmental benefits or entitlements, and liens,
35 34 except liens for child support, are not enforceable
35 35 against these sums for any reason.
35 36 Sec. 66. Section 422.120, subsection 1, paragraph
35 37 b, subparagraph (3), Code 2003, is amended to read as
35 38 follows:
35 39 (3) The annual index factor for the 1997 calendar
35 40 year is one hundred percent. For each subsequent the
35 41 1998 through 2006 calendar year years, the annual
35 42 index factor equals the annual inflation factor for
35 43 that calendar year as computed in section 422.4 for
35 44 purposes of the individual income tax. For the 2007
35 45 calendar year and each subsequent calendar year the
35 46 annual index factor shall be determined by the
35 47 department by October 15 of the calendar year
35 48 preceding the calendar year for which the factor is
35 49 determined, which reflects the purchasing power of the
35 50 dollar as a result of inflation during the fiscal year
36 1 ending in the calendar year preceding the calendar
36 2 year for which the factor is determined. In
36 3 determining the annual index factor, the department
36 4 shall use the annual percent change, but not less than
36 5 zero percent, in the gross domestic product price
36 6 deflator computed for the second quarter of the
36 7 calendar year by the bureau of economic analysis of
36 8 the United States department of commerce and shall add
36 9 all of that percent change to one hundred percent.
36 10 The annual index factor and the cumulative index
36 11 factor shall each be expressed as a percentage rounded
36 12 to the nearest one=tenth of one percent. The annual
36 13 index factor shall not be less than one hundred
36 14 percent.
36 15 Sec. 67. Section 425.23, subsection 4, paragraph
36 16 b, Code 2003, is amended to read as follows:
36 17 b. The annual adjustment factor for the 1998 base
36 18 year is one hundred percent. For each subsequent the
36 19 1999 through 2006 base year years, the annual
36 20 adjustment factor equals the annual inflation factor
36 21 for the calendar year, in which the base year begins,
36 22 as computed in section 422.4 for purposes of the
36 23 individual income tax. For the 2007 base year and
36 24 each subsequent base year, the annual adjustment
36 25 factor equals the annual index factor, in which the
36 26 base year begins, as computed in section 422.120,
36 27 subsection 1, for purposes of the livestock production
36 28 tax credit.
36 29 Sec. 68. Section 450.4, subsection 8, Code 2003,
36 30 is amended to read as follows:
36 31 8. On the value of that portion of any lump sum or
36 32 installment payments which are received by a
36 33 beneficiary under an annuity which was purchased under
36 34 an employee's pension or retirement plan which was
36 35 excluded from net income as set forth in under section
36 36 422.7, subsection 31.
36 37 Sec. 69. Section 541A.2, subsection 7, unnumbered
36 38 paragraph 1, Code 2003, is amended to read as follows:
36 39 An individual development account closed in
36 40 accordance with this subsection is not subject to the
36 41 limitations and benefits provided by this chapter but
36 42 is subject to state tax in accordance with the
36 43 provisions of section 422.7, subsection 28 2,
36 44 paragraph "g", and section 450.4, subsection 6. An
36 45 individual development account may be closed for any
36 46 of the following reasons:
36 47 Sec. 70. Section 541A.3, subsection 2, Code 2003,
36 48 is amended to read as follows:
36 49 2. Income earned by an individual development
36 50 account is not subject to state tax, in accordance
37 1 with the provisions of section 422.7, subsection 28 2,
37 2 paragraph "g".
37 3 Sec. 71. Division III of this Act is repealed.
37 4 CONTINGENT EFFECTIVE AND APPLICABILITY DATE PROVISION
37 5 Sec. 72.
37 6 1. This division of this Act takes effect upon
37 7 ratification prior to January 1, 2007, of an amendment
37 8 to the Constitution of the State of Iowa requiring a
37 9 three=fifths majority vote of each house of the
37 10 general assembly in order to pass a bill that amends
37 11 the state individual income tax by raising the rate or
37 12 rates of the individual income tax or of an amendment
37 13 to the Constitution of the State of Iowa requiring a
37 14 statewide referendum in order to approve a bill that
37 15 amends the state individual income tax by raising the
37 16 rate or rates of the individual income tax.
37 17 2. If this division of this Act takes effect as
37 18 provided in subsection 1, this division of this Act,
37 19 except as provided in subsection 3, applies to tax
37 20 years beginning on or after January 1, 2007.
37 21 3. The section of this division of this Act
37 22 repealing section 422.11B applies to tax years
37 23 beginning on or after January 1, 2010.
37 24 DIVISION V
37 25 SALES AND USE TAX STUDIES
37 26 Sec. 73. INDUSTRIAL PROCESSING EXEMPTION STUDY
37 27 COMMITTEE. On or before July 1, 2003, the department
37 28 of revenue and finance shall initiate and coordinate
37 29 the establishment of an industrial processing
37 30 exemption study committee and provide staffing
37 31 assistance to the committee. It is the intent of the
37 32 general assembly that the committee shall include
37 33 representatives of the department of revenue and
37 34 finance, department of management, industrial
37 35 producers including manufacturers, fabricators,
37 36 printers and publishers, and an association that
37 37 specifically represents business tax issues, and other
37 38 stakeholders.
37 39 The industrial processing exemption under the sales
37 40 and use tax is a significant exemption for business.
37 41 The committee shall study and make legislative and
37 42 administrative recommendations relating to Iowa's
37 43 processing exemption to ensure maximum utilization by
37 44 Iowa's industries.
37 45 The committee shall study and make recommendations
37 46 regarding all of the following:
37 47 1. The current sales and use tax industrial
37 48 processing exemption.
37 49 2. The corresponding administrative rules,
37 50 including a review and recommendation of an
38 1 administrative rules process relating to the
38 2 industrial processing exemption prior to filing with
38 3 the administrative rules review committee.
38 4 3. Other states' industrial processing exemptions.
38 5 4. Recommendations for change for issues including
38 6 effectiveness and competitiveness.
38 7 5. Development of additional publications to
38 8 improve compliance.
38 9 The committee shall annually report to the general
38 10 assembly by January 1 of each year through January 1,
38 11 2013.
38 12 Sec. 74. IOWA SALES, SERVICES, AND USE TAX STUDY
38 13 COMMITTEE. On or before July 1, 2003, the department
38 14 of revenue and finance shall initiate and coordinate
38 15 the establishment of a state sales, services, and use
38 16 tax study committee and provide staffing assistance to
38 17 the committee. It is the intent of the general
38 18 assembly that the committee shall include
38 19 representatives of the department of revenue and
38 20 finance, department of management, an association of
38 21 Iowa farmers and other agricultural interests, retail
38 22 associations, contractors, taxpayers, an association
38 23 that specifically represents business tax issues, and
38 24 other stakeholders, two members of the general
38 25 assembly, and a representative of the governor's
38 26 office.
38 27 The committee shall study the current sales,
38 28 services, and use tax law. Programs funded through
38 29 special features of the tax code often escape regular
38 30 review. It is intended that the study committee shall
38 31 review the current sales, services, and use tax
38 32 exemptions to improve government accountability.
38 33 The committee shall study and make recommendations
38 34 regarding all of the following:
38 35 1. Retaining or eliminating current sales,
38 36 services, and use tax exemptions or providing new
38 37 exemptions. Such decisions shall be based at least
38 38 partially on the issues of effectiveness and
38 39 competitiveness and their impact on economic behavior.
38 40 2. Tax simplification and consistency issues in
38 41 applying the tax, including recordkeeping burdens on
38 42 retailers and application by the department of revenue
38 43 and finance.
38 44 3. Streamlining sales tax implementation in Iowa.
38 45 4. The tax rate.
38 46 5. Comparison of Iowa sales, services, and use tax
38 47 structure with other states.
38 48 The committee shall report to the general assembly
38 49 by January 1, 2004. The report shall provide
38 50 rationale for each decision made by the study
39 1 committee.
39 2 Sec. 75. EFFECTIVE DATE. This division of this
39 3 Act, being deemed of immediate importance, takes
39 4 effect July 1, 2003.
39 5 DIVISION VI
39 6 GROW IOWA BOARD AND FUND
39 7 Sec. 76. Section 15.108, subsection 9, Code 2003,
39 8 is amended by adding the following new paragraph:
39 9 NEW PARAGRAPH. g. Administer the marketing
39 10 strategy selected pursuant to section 15G.108.
39 11 Sec. 77. NEW SECTION. 15G.101 DEFINITIONS.
39 12 As used in this chapter, unless the context
39 13 otherwise requires:
39 14 1. "Board" means the grow Iowa board established
39 15 in section 15G.102.
39 16 2. "Department" means the Iowa department of
39 17 economic development created in section 15.105.
39 18 3. "Director" means the director of the department
39 19 of economic development.
39 20 4. "Fund" means the grow Iowa fund created in
39 21 section 15G.107.
39 22 5. "Grow Iowa geographic regions" means the
39 23 geographic regions defined in section 15G.105.
39 24 Sec. 78. NEW SECTION. 15G.102 GROW IOWA BOARD.
39 25 1. The grow Iowa board is established consisting
39 26 of nine voting members. The grow Iowa board shall be
39 27 located for administrative purposes within the
39 28 department and the director shall provide office
39 29 space, staff assistance, and necessary supplies and
39 30 equipment for the board. The director shall budget
39 31 moneys to pay the compensation and expenses of the
39 32 board. In performing its functions, the board is
39 33 performing a public function on behalf of the state
39 34 and is a public instrumentality of the state.
39 35 2. a. The members of the board shall be appointed
39 36 as follows:
39 37 (1) Five individuals appointed by the governor,
39 38 subject to confirmation by the senate.
39 39 (2) Four individuals appointed by the legislative
39 40 council.
39 41 b. All appointments shall comply with sections
39 42 69.16 and 69.16A.
39 43 c. At least one member of the board shall be from
39 44 each grow Iowa geographic region.
39 45 d. Each of the following areas of expertise shall
39 46 be represented by at least one member of the board who
39 47 has professional experience in that area of expertise:
39 48 (1) Accounting and finance.
39 49 (2) Business development for employers with less
39 50 than two hundred employees and sales of less than ten
40 1 million dollars per year.
40 2 (3) Insurance.
40 3 (4) Economics.
40 4 (5) Personnel.
40 5 e. All members of the board shall be actively
40 6 employed in the private, for=profit sector of the
40 7 economy.
40 8 f. The board membership shall be balanced between
40 9 representation by employers with less than two hundred
40 10 employees and employers with two hundred or more
40 11 employees.
40 12 3. The chairperson and vice chairperson shall be
40 13 elected by the members of the board from the
40 14 membership of the board. In the case of the absence
40 15 or disability of the chairperson and vice chairperson,
40 16 the members of the board shall elect a temporary
40 17 chairperson by a majority vote of those members who
40 18 are present and voting, provided a quorum is present.
40 19 4. The members of the board shall be appointed to
40 20 three=year staggered terms and the terms shall
40 21 commence and end as provided in section 69.19. If a
40 22 vacancy occurs, a successor shall be appointed in the
40 23 same manner and subject to the same qualifications as
40 24 the original appointment to serve the unexpired term.
40 25 5. A majority of the board constitutes a quorum.
40 26 6. A member of the board shall abstain from voting
40 27 on the provision of financial assistance to a project
40 28 which is located in the county in which the member of
40 29 the board resides.
40 30 7. The members of the board are entitled to
40 31 receive reimbursement for actual expenses incurred
40 32 while engaged in the performance of official duties.
40 33 A board member may also be eligible to receive
40 34 compensation as provided in section 7E.6.
40 35 Sec. 79. NEW SECTION. 15G.103 BOARD DUTIES.
40 36 The board shall do all of the following:
40 37 1. Organize.
40 38 2. Receive advice and recommendations from the
40 39 grow Iowa investment board, the economic development
40 40 marketing board, and the grow Iowa review commission.
40 41 3. Provide advice and recommendations to the
40 42 department and the Iowa economic development board for
40 43 making appropriations from and administering the grow
40 44 Iowa fund. A recommendation made by the grow Iowa
40 45 board to the department or the Iowa economic
40 46 development board shall be either approved or denied
40 47 by the department or the Iowa economic development
40 48 board.
40 49 4. Assist the department in implementing programs
40 50 and activities in a manner designed to achieve the
41 1 goals set out in section 15G.106.
41 2 5. By December 15 of each year, submit a written
41 3 report to the general assembly reviewing the
41 4 activities of the board during the calendar year. The
41 5 report shall include information necessary for the
41 6 review of the goals and performance measures set out
41 7 in section 15G.106. State agencies and other entities
41 8 receiving moneys from the fund shall cooperate with
41 9 and assist the board in compilation of the report.
41 10 6. Adopt administrative rules pursuant to chapter
41 11 17A necessary to administer this chapter. This
41 12 delegation shall be construed narrowly.
41 13 Sec. 80. NEW SECTION. 15G.104 GROW IOWA
41 14 INVESTMENT BOARD.
41 15 1. A grow Iowa investment board is established
41 16 consisting of three members and is located for
41 17 administrative purposes within the department. The
41 18 director of the department shall provide office space,
41 19 staff assistance, and necessary supplies and equipment
41 20 for the board. The director shall budget moneys to
41 21 pay the compensation and expenses of the board. In
41 22 performing its functions, the board is performing a
41 23 public function on behalf of the state and is a public
41 24 instrumentality of the state.
41 25 2. a. Membership of the grow Iowa investment
41 26 board shall include all of the following:
41 27 (1) One member appointed by the governor from a
41 28 list of three banking representatives provided by the
41 29 superintendent of banking. This member shall serve a
41 30 three=year term.
41 31 (2) One member appointed by the governor from a
41 32 list of entrepreneurs provided jointly by the Iowa
41 33 association of business and industry and the national
41 34 federation of independent business. This member shall
41 35 serve a three=year term.
41 36 (3) The entrepreneur of the year as selected by
41 37 the Iowa small business development centers shall be
41 38 offered a one=year membership on the investment board.
41 39 If the entrepreneur of the year declines to serve on
41 40 the investment board, a member shall be appointed by
41 41 the governor from the list provided pursuant to
41 42 subparagraph (2) for the one=year term.
41 43 b. The chairperson and vice chairperson of the
41 44 grow Iowa investment board shall be elected by and
41 45 from the investment board members. The terms of the
41 46 members shall commence and end as provided by section
41 47 69.19. If a vacancy occurs, a successor shall be
41 48 appointed in the same manner and subject to the same
41 49 qualifications as the original appointment to serve
41 50 the unexpired term. A majority of the investment
42 1 board constitutes a quorum.
42 2 3. The grow Iowa investment board, after a
42 3 thorough review, shall determine whether a proposed
42 4 project using moneys from the grow Iowa fund is
42 5 practical and shall provide recommendations to the
42 6 grow Iowa board regarding any moneys proposed to be
42 7 expended from the grow Iowa fund, with the exception
42 8 of moneys appropriated for purposes of the loan and
42 9 credit guarantee program and regarding whether a
42 10 proposed project is practical. The recommendations
42 11 shall be based on whether the expenditure would make
42 12 the achievement of the goals in accordance with the
42 13 performance measures set out in section 15G.106 more
42 14 likely. The recommendations may include conditions or
42 15 that proposed expenditure be rejected. The grow Iowa
42 16 board shall consider the recommendations of the grow
42 17 Iowa investment board and shall make an independent
42 18 recommendation to the department and the Iowa economic
42 19 development board regarding the expenditure. The
42 20 recommendations of the grow Iowa board shall include
42 21 the recommendations made by the grow Iowa investment
42 22 board.
42 23 4. The members of the board are entitled to
42 24 receive reimbursement for actual expenses incurred
42 25 while engaged in the performance of official duties.
42 26 A board member may also be eligible to receive
42 27 compensation as provided in section 7E.6.
42 28 Sec. 81. NEW SECTION. 15G.104A GROW IOWA REVIEW
42 29 COMMISSION.
42 30 1. A grow Iowa review commission is established
42 31 consisting of three members and is located for
42 32 administrative purposes within the department. The
42 33 director of the department shall provide office space,
42 34 staff assistance, and necessary supplies and equipment
42 35 for the review commission. The director shall budget
42 36 moneys to pay the compensation and expenses of the
42 37 commission, including the actual expenses of the
42 38 auditor of state incurred while engaged in the
42 39 performance of official commission duties. In
42 40 performing its functions, the review commission is
42 41 performing a public function on behalf of the state
42 42 and is a public instrumentality of the state.
42 43 2. Membership of the review commission shall
42 44 include the auditor of state, an economist for the
42 45 Iowa state university cooperative extension service in
42 46 agriculture and home economics appointed by the
42 47 president of the senate after consultation with the
42 48 minority leader of the senate, and a private sector
42 49 economist with broad experience reviewing and
42 50 analyzing the Iowa economy and the economy of the
43 1 upper midwest appointed by the speaker of the house of
43 2 representatives after consultation with the minority
43 3 leader of the house of representatives. The
43 4 appointments shall comply with sections 69.16 and
43 5 69.16A. The chairperson of the review commission
43 6 shall be the auditor of state. The members shall be
43 7 appointed to three=year staggered terms and the terms
43 8 shall commence and end as provided by section 69.19.
43 9 If a vacancy occurs, a successor shall be appointed in
43 10 the same manner and subject to the same qualifications
43 11 as the original appointment to serve the unexpired
43 12 term. A majority of the review commission constitutes
43 13 a quorum. For purposes of this subsection, "upper
43 14 midwest" includes the states of Iowa, Kansas,
43 15 Minnesota, Missouri, Nebraska, North Dakota, and South
43 16 Dakota.
43 17 3. The review commission shall analyze all annual
43 18 reports of the grow Iowa board for purposes of
43 19 determining if the goals and performance measures set
43 20 out in section 15G.106 have been met. By January 1,
43 21 2007, the review commission shall submit a report to
43 22 the grow Iowa board, the department, and the general
43 23 assembly. The report shall include findings, itemized
43 24 by grow Iowa geographic regions, regarding whether the
43 25 goals and performance measures were met. The report
43 26 shall also include recommendations regarding the
43 27 continuation, elimination, or modification of any
43 28 programs receiving moneys from the grow Iowa fund and
43 29 whether moneys should continue to be appropriated to
43 30 and from the grow Iowa fund. The recommendations
43 31 shall be based on whether the goals in accordance with
43 32 the performance measures are being achieved.
43 33 4. The members of the commission, including the
43 34 auditor of state, are entitled to receive
43 35 reimbursement for actual expenses incurred while
43 36 engaged in the performance of official duties. A
43 37 commission member may also be eligible to receive
43 38 compensation as provided in section 7E.6.
43 39 Sec. 82. NEW SECTION. 15G.105 GROW IOWA
43 40 GEOGRAPHIC REGIONS.
43 41 For purposes of applying the goals and performance
43 42 measurements, the state shall be divided into five
43 43 grow Iowa geographic regions. The regions shall be
43 44 the following:
43 45 1. The northwest region shall include the counties
43 46 of Lyon, Osceola, Dickinson, Emmet, Kossuth,
43 47 Winnebago, Sioux, O'Brien, Clay, Palo Alto, Hancock,
43 48 Plymouth, Cherokee, Buena Vista, Pocahontas, Humboldt,
43 49 Wright, Woodbury, Ida, Sac, Calhoun, Webster, and
43 50 Hamilton.
44 1 2. The northeast region shall include the counties
44 2 of Worth, Mitchell, Howard, Winneshiek, Allamakee,
44 3 Cerro Gordo, Floyd, Chickasaw, Fayette, Clayton,
44 4 Franklin, Butler, Bremer, Hardin, Grundy, Black Hawk,
44 5 Buchanan, Delaware, Dubuque, Tama, Benton, Linn,
44 6 Jones, and Jackson.
44 7 3. The southeast region shall include the counties
44 8 of Poweshiek, Iowa, Johnson, Cedar, Clinton, Scott,
44 9 Muscatine, Mahaska, Keokuk, Washington, Louisa,
44 10 Monroe, Wapello, Jefferson, Henry, Des Moines,
44 11 Appanoose, Davis, Van Buren, and Lee.
44 12 4. The southwest region shall include the counties
44 13 of Monona, Crawford, Carroll, Greene, Harrison,
44 14 Shelby, Audubon, Guthrie, Pottawattamie, Cass, Adair,
44 15 Mills, Montgomery, Adams, Union, Clarke, Lucas,
44 16 Fremont, Page, Taylor, Ringgold, Decatur, and Wayne.
44 17 5. The central region shall include the counties
44 18 of Boone, Story, Marshall, Dallas, Polk, Jasper,
44 19 Madison, Warren, and Marion.
44 20 Sec. 83. NEW SECTION. 15G.106 GOALS ==
44 21 PERFORMANCE MEASURES.
44 22 1. In performing the duties provided in this
44 23 chapter, chapter 15, and chapter 15E, the grow Iowa
44 24 board, the grow Iowa investment board, the economic
44 25 development marketing board, the grow Iowa review
44 26 commission, and the department shall achieve the goals
44 27 of expanding and stimulating the state economy,
44 28 increasing the wealth of Iowans, and increasing the
44 29 population of the state. For purposes of this
44 30 section, "upper midwest region" includes the states of
44 31 Iowa, Kansas, Minnesota, Missouri, Nebraska, North
44 32 Dakota, and South Dakota.
44 33 2. Goal achievement shall be examined on a
44 34 regional basis using the grow Iowa geographic regions
44 35 and not on a statewide basis. The performance of the
44 36 grow Iowa geographic regions shall be compared to the
44 37 performance of the state, the upper midwest region,
44 38 and the United States. The baseline year shall be the
44 39 calendar year 2000. In each grow Iowa geographic
44 40 region, the goal shall be to increase the baseline
44 41 performance measures listed in subsections 3, 4, and
44 42 5, by thirty percent.
44 43 3. a. In determining whether the goal of
44 44 expanding and stimulating the state economy has been
44 45 met, the following performance measures shall be
44 46 considered:
44 47 (1) An increase in Iowa's gross domestic product.
44 48 (2) A net increase in business start=ups.
44 49 (3) A net increase in business expansion.
44 50 (4) A net increase in business modernization.
45 1 (5) A net increase in attracting new businesses to
45 2 the state.
45 3 (6) A net increase in business retention.
45 4 (7) A net increase in job creation and retention.
45 5 (8) A decrease in Iowa of the ratio of the
45 6 government wage earnings as a percentage share of the
45 7 earnings of private industry in Iowa at a rate at
45 8 least equal to the ratio of the upper midwest region.
45 9 b. By December 15 of each year, the department
45 10 shall submit a report to the grow Iowa review
45 11 commission and the grow Iowa board that identifies
45 12 information pertinent to the performance measures in
45 13 paragraph "a", subparagraphs (3), (4), and (6), that
45 14 the department gains through interviews with
45 15 businesses in the state that close all or a portion of
45 16 operations in the state. By December 15 of each year,
45 17 based on the same interviews, the department shall
45 18 submit a report to the general assembly providing
45 19 suggested amendments to the Code of Iowa and the Iowa
45 20 administrative code designed to stimulate and expand
45 21 the state's economy.
45 22 c. By December 15 of each year the department
45 23 shall submit a report to the grow Iowa review
45 24 commission and the grow Iowa board that identifies
45 25 lost sale reports information pertinent to the
45 26 performance measures in paragraph "a", subparagraphs
45 27 (2) and (5), which indicate that the state has not
45 28 been successful in the performance measures in
45 29 paragraph "a", subparagraphs (2) and (5).
45 30 d. For purposes of the performance measure in
45 31 paragraph "a", subparagraph (7), the department of
45 32 economic development, in consultation with the
45 33 department of workforce development and the auditor of
45 34 state, shall determine an average annual job creation
45 35 and retention rate based on the ten years prior to
45 36 2003. During the fiscal years beginning July 1, 2003,
45 37 July 1, 2004, and July 1, 2005, the department of
45 38 economic development shall report the job creation and
45 39 retention rate of those businesses that receive moneys
45 40 originating from the grow Iowa fund and the job
45 41 creation and retention rate of those businesses that
45 42 do not receive moneys originating from the grow Iowa
45 43 fund. The ten=year average annual job creation and
45 44 retention rate shall be compared to the job creation
45 45 and retention rates determined under this paragraph
45 46 for the fiscal years beginning July 1, 2003, July 1,
45 47 2004, and July 1, 2005. The department of economic
45 48 development shall assist the department of workforce
45 49 development in maintaining detailed employment
45 50 statistics on businesses that receive moneys
46 1 originating from the grow Iowa fund, on businesses
46 2 that do not receive moneys originating from the grow
46 3 Iowa fund, and on industries in Iowa that those
46 4 businesses represent. The auditor of state shall
46 5 audit the reliability and validity of the statistics
46 6 compiled pursuant to this paragraph.
46 7 4. In determining whether the goal of increasing
46 8 the wealth of Iowans has been met, the following
46 9 performance measures shall be considered:
46 10 a. The per capita personal income in Iowa shall
46 11 equal or exceed the average per capita personal income
46 12 for the upper midwest region.
46 13 b. The average earnings per job in Iowa shall
46 14 equal or exceed the average earnings per job in the
46 15 upper midwest region.
46 16 c. The average manufacturing earnings per employee
46 17 in Iowa shall equal or exceed the average
46 18 manufacturing earnings per employee in the upper
46 19 midwest region.
46 20 d. The average service earnings per employee in
46 21 Iowa shall equal or exceed the average service
46 22 earnings per employee in the upper midwest region.
46 23 e. The average earnings per employee in the
46 24 financial, insurance, and real estate industries in
46 25 Iowa shall equal or exceed the average earnings per
46 26 employee in the financial, insurance, and real estate
46 27 industries in the upper midwest region.
46 28 5. In determining whether the goal of increasing
46 29 the population of the state has been met, the
46 30 following performance measures shall be considered:
46 31 a. The net increase in new residents in the state
46 32 gained through attracting new businesses to the state.
46 33 b. The increase in the retention of high school
46 34 graduates and college graduates from private and
46 35 public colleges and universities in the state after
46 36 graduation.
46 37 c. The ability to retain fifty percent of all
46 38 undergraduate graduates of universities under the
46 39 control of the state board of regents in the state
46 40 after graduation.
46 41 d. The net population growth of Iowa equals or
46 42 exceeds the population growth in the upper midwest
46 43 region.
46 44 Sec. 84. NEW SECTION. 15G.107 GROW IOWA FUND.
46 45 A grow Iowa fund is created in the state treasury
46 46 under the control of the grow Iowa board consisting of
46 47 moneys appropriated to the grow Iowa board. Moneys in
46 48 the fund are not subject to section 8.33.
46 49 Notwithstanding section 12C.7, interest or earnings on
46 50 moneys in the fund shall be credited to the fund. The
47 1 fund shall be administered by the grow Iowa board,
47 2 which shall make expenditures from the fund consistent
47 3 with this chapter and pertinent Acts of the general
47 4 assembly.
47 5 Sec. 85. NEW SECTION. 15G.108 ECONOMIC
47 6 DEVELOPMENT MARKETING BOARD == MARKETING STRATEGIES.
47 7 1. a. An economic development marketing board is
47 8 established consisting of seven members and is located
47 9 for administrative purposes within the department.
47 10 The director of the department shall provide office
47 11 space, staff assistance, and necessary supplies and
47 12 equipment for the board. The director shall budget
47 13 moneys to pay the compensation and expenses of the
47 14 board. In performing its functions, the board is
47 15 performing a public function on behalf of the state
47 16 and is a public instrumentality of the state.
47 17 b. The membership of the board shall be as
47 18 follows:
47 19 (1) Three members with significant demonstrated
47 20 experience in marketing or advertising appointed by
47 21 the governor.
47 22 (2) Four members with significant demonstrated
47 23 experience in marketing or advertising appointed by
47 24 the legislative council.
47 25 c. The appointments made by the governor shall
47 26 comply with sections 69.16 and 69.16A and shall be
47 27 subject to confirmation by the senate.
47 28 d. The chairperson and vice chairperson of the
47 29 board shall be elected by and from the board members
47 30 listed in paragraph "b". In case of the absence or
47 31 disability of the chairperson and vice chairperson,
47 32 the members of the board shall elect a temporary
47 33 chairperson by a majority vote of those members who
47 34 are present and voting.
47 35 e. The members shall be appointed to three=year
47 36 staggered terms and the terms shall commence and end
47 37 as provided by section 69.19. If a vacancy occurs, a
47 38 successor shall be appointed to serve the unexpired
47 39 term. A successor shall be appointed in the same
47 40 manner and subject to the same qualifications as the
47 41 original appointment to serve the unexpired term.
47 42 f. A majority of the board constitutes a quorum.
47 43 2. The board shall administer and implement the
47 44 approval process for marketing strategies provided in
47 45 subsection 3.
47 46 3. The economic development marketing board shall
47 47 accept proposals for marketing strategies for purposes
47 48 of selecting a strategy for the department to
47 49 administer. The marketing strategies shall be
47 50 designed to market Iowa as a lifestyle, increase the
48 1 population of the state, increase the wealth of
48 2 Iowans, and expand and stimulate the state economy.
48 3 The economic development marketing board shall submit
48 4 a recommendation regarding the proposal to the grow
48 5 Iowa board. In selecting a marketing strategy for
48 6 recommendation, the economic development marketing
48 7 board shall base the selection on the goals and
48 8 performance measures provided in section 15G.106. The
48 9 grow Iowa board shall either approve or deny the
48 10 recommendation.
48 11 4. The department shall implement and administer
48 12 the marketing strategy approved by the grow Iowa board
48 13 as provided in subsection 3. The department shall
48 14 provide the economic development marketing board with
48 15 assistance in implementing administrative functions of
48 16 the board and provide technical assistance to the
48 17 board.
48 18 5. The members of the board are entitled to
48 19 receive reimbursement for actual expenses incurred
48 20 while engaged in the performance of official duties.
48 21 A board member may also be eligible to receive
48 22 compensation as provided in section 7E.6.
48 23 Sec. 86. NEW SECTION. 15G.109 FUTURE
48 24 CONSIDERATION.
48 25 Not later than February 1, 2007, the legislative
48 26 services agency shall prepare and deliver to the
48 27 secretary of the senate and the chief clerk of the
48 28 house of representatives identical bills that repeal
48 29 the provisions of this chapter. It is the intent of
48 30 this section that the general assembly shall bring the
48 31 bill to a vote in either the senate or the house of
48 32 representatives expeditiously. It is further the
48 33 intent of this chapter that if the bill is approved by
48 34 the first house in which it is considered, it shall
48 35 expeditiously be brought to a vote in the second
48 36 house.
48 37 DIVISION VII
48 38 VALUE=ADDED AGRICULTURAL PRODUCTS AND PROCESSES
48 39 FINANCIAL ASSISTANCE PROGRAM
48 40 Sec. 87. Section 15E.111, subsection 1, Code 2003,
48 41 is amended to read as follows:
48 42 1. a. The department shall establish a value=
48 43 added agricultural products and processes financial
48 44 assistance program. The department shall consult with
48 45 the Iowa corn growers association and the Iowa soybean
48 46 association Iowa commodity groups. The purpose of the
48 47 program is to encourage the increased utilization of
48 48 agricultural commodities produced in this state. The
48 49 program shall assist in efforts to revitalize rural
48 50 regions of this state, by committing resources to
49 1 provide financial assistance to new or existing value=
49 2 added production facilities. The department of
49 3 economic development may consult with other state
49 4 agencies regarding any possible future environmental,
49 5 health, or safety issues linked to technology related
49 6 to the biotechnology industry. In awarding financial
49 7 assistance, the department shall prefer producer=
49 8 owned, value=added businesses and public and private
49 9 joint ventures involving an institution of higher
49 10 learning under the control of the state board of
49 11 regents or a private college or university acquiring
49 12 assets, research facilities, and leveraging moneys in
49 13 a manner that meets the goals of the grow Iowa fund
49 14 and shall commit resources to assist the following:
49 15 a. (1) Facilities which are involved in the
49 16 development of new innovative products and processes
49 17 related to agriculture. The facility must do either
49 18 of the following: produce a good derived from an
49 19 agricultural commodity, if the good is not commonly
49 20 produced from an agricultural commodity; or use a
49 21 process to produce a good derived from an agricultural
49 22 process, if the process is not commonly used to
49 23 produce the good.
49 24 b. (2) Renewable fuel production facilities. As
49 25 used in this section, "renewable fuel" means an energy
49 26 source which is derived from an organic compound
49 27 capable of powering machinery, including an engine or
49 28 power plant.
49 29 (3) Agricultural business facilities in the
49 30 agricultural biotechnology industry, agricultural
49 31 biomass industry, and alternative energy industry.
49 32 For purposes of this subsection:
49 33 (a) "Agricultural biomass industry" means
49 34 businesses that utilize agricultural commodity crops,
49 35 agricultural by=products, or animal feedstock in the
49 36 production of chemicals, protein products, or other
49 37 high=value products.
49 38 (b) "Agricultural biotechnology industry" means
49 39 businesses that utilize scientifically enhanced plants
49 40 or animals that can be raised by producers and used in
49 41 the production of high=value products.
49 42 (c) "Alternative energy industry" includes
49 43 businesses involved in the production of ethanol,
49 44 including gasoline with a mixture of seventy percent
49 45 or more ethanol, biodiesel, biomass, hydrogen, or in
49 46 the production of wind energy.
49 47 (4) Facilities that add value to Iowa agricultural
49 48 commodities through further processing and development
49 49 of organic products and emerging markets.
49 50 (5) Producer=owned, value=added businesses,
50 1 education of producers and management boards in value=
50 2 added businesses, and other activities that would
50 3 support the infrastructure in the development of
50 4 value=added agriculture. Public and private joint
50 5 ventures involving an institution of higher learning
50 6 under the control of the state board of regents or a
50 7 private college or university to acquire assets,
50 8 research facilities, and leverage moneys in a manner
50 9 that meets the goals of the grow Iowa fund. For
50 10 purposes of this subsection, "producer=owned, valued=
50 11 added business" means a person who holds an equity
50 12 interest in the agricultural business and is
50 13 personally involved in the production of crops or
50 14 livestock on a regular, continuous, and substantial
50 15 basis.
50 16 b. Financial assistance awarded under this section
50 17 may be in the form of a loan, loan guarantee, grant,
50 18 production incentive payment, or a combination of
50 19 financial assistance. The department shall not award
50 20 more than twenty=five percent of the amount allocated
50 21 to the value=added agricultural products and processes
50 22 financial assistance fund during any fiscal year to
50 23 support a single person. The department may finance
50 24 any size of facility. However, the department shall
50 25 may reserve up to fifty percent of the total amount
50 26 allocated to the fund, for purposes of assisting
50 27 persons requiring one five hundred thousand dollars or
50 28 less in financial assistance. The amount shall be
50 29 reserved until the end of the third quarter of the
50 30 fiscal year. The department shall not provide
50 31 financial assistance to support a value=added
50 32 production facility if the facility or a person owning
50 33 a controlling interest in the facility has
50 34 demonstrated a continuous and flagrant disregard for
50 35 the health and safety of its employees or the quality
50 36 of the environment. Evidence of such disregard shall
50 37 include a history of serious or uncorrected violations
50 38 of state or federal law protecting occupational health
50 39 and safety or the environment, including but not
50 40 limited to serious or uncorrected violations of
50 41 occupational safety and health standards enforced by
50 42 the division of labor services of the department of
50 43 workforce development pursuant to chapter 84A, or
50 44 rules enforced by the department of natural resources
50 45 pursuant to chapter 455B or 459, subchapters II and
50 46 III.
50 47 DIVISION VIII
50 48 ENDOW IOWA GRANTS
50 49 Sec. 88. NEW SECTION. 15E.301 SHORT TITLE.
50 50 This division shall be known as and may be cited as
51 1 the "Endow Iowa Program Act".
51 2 Sec. 89. NEW SECTION. 15E.302 PURPOSE.
51 3 The purpose of this division is to enhance the
51 4 quality of life for citizens of this state through
51 5 increased philanthropic activity by providing capital
51 6 to new and existing citizen groups of this state
51 7 organized to establish endowment funds that will
51 8 address community needs. The purpose of this division
51 9 is also to encourage individuals, businesses, and
51 10 organizations to invest in community foundations.
51 11 Sec. 90. NEW SECTION. 15E.303 DEFINITIONS.
51 12 As used in this division, unless the context
51 13 otherwise requires:
51 14 1. "Board" means the governing board of the lead
51 15 philanthropic entity identified by the department
51 16 pursuant to section 15E.304.
51 17 2. "Business" means a business operating within
51 18 the state and includes individuals operating a sole
51 19 proprietorship or having rental, royalty, or farm
51 20 income in this state and includes a consortium of
51 21 businesses.
51 22 3. "Community affiliate organization" means a
51 23 group of five or more community leaders or advocates
51 24 organized for the purpose of increasing philanthropic
51 25 activity in an identified community or geographic area
51 26 in this state with the intention of establishing a
51 27 community affiliate endowment fund.
51 28 4. "Endowment gift" means an irrevocable
51 29 contribution to a permanent endowment held by a
51 30 qualified community foundation.
51 31 5. "Lead philanthropic entity" means the entity
51 32 identified by the department pursuant to section
51 33 15E.304.
51 34 6. "Qualified community foundation" means a
51 35 community foundation organized or operating in this
51 36 state that meets or exceeds the national standards
51 37 established by the national council on foundations.
51 38 Sec. 91. NEW SECTION. 15E.304 ENDOW IOWA GRANTS.
51 39 1. The department shall identify a lead
51 40 philanthropic entity for purposes of encouraging the
51 41 development of qualified community foundations in this
51 42 state. A lead philanthropic entity shall meet all of
51 43 the following qualifications:
51 44 a. The entity shall be a nonprofit entity which is
51 45 exempt from federal income taxation pursuant to
51 46 section 501(c)(3) of the Internal Revenue Code.
51 47 b. The entity shall be a statewide organization
51 48 with membership consisting of organizations, such as
51 49 community, corporate, and private foundations, whose
51 50 principal function is the making of grants within the
52 1 state of Iowa.
52 2 c. The entity shall have a minimum of forty
52 3 members and that membership shall include qualified
52 4 community foundations.
52 5 2. A lead philanthropic entity may receive a grant
52 6 from the department. The board shall use the grant
52 7 moneys to award endow Iowa grants to new and existing
52 8 qualified community foundations and to community
52 9 affiliate organizations that do all of the following:
52 10 a. Provide the board with all information required
52 11 by the board.
52 12 b. Demonstrate a dollar=for=dollar funding match
52 13 in a form approved by the board.
52 14 c. Identify a qualified community foundation to
52 15 hold all funds. A qualified community foundation
52 16 shall not be required to meet this requirement.
52 17 d. Provide a plan to the board demonstrating the
52 18 method for distributing grant moneys received from the
52 19 board to organizations within the community or
52 20 geographic area as defined by the qualified community
52 21 foundation or the community affiliate organization.
52 22 3. Endow Iowa grants awarded to new and existing
52 23 qualified community foundations and to community
52 24 affiliate organizations shall not exceed twenty=five
52 25 thousand dollars per foundation or organization unless
52 26 a foundation or organization demonstrates a multiple
52 27 county or regional approach. Endow Iowa grants may be
52 28 awarded on an annual basis with not more than three
52 29 grants going to one county in a fiscal year.
52 30 4. In ranking applications for grants, the board
52 31 shall consider a variety of factors including the
52 32 following:
52 33 a. The demonstrated need for financial assistance.
52 34 b. The potential for future philanthropic activity
52 35 in the area represented by or being considered for
52 36 assistance.
52 37 c. The proportion of the funding match being
52 38 provided.
52 39 d. For community affiliate organizations, the
52 40 demonstrated need for the creation of a community
52 41 affiliate endowment fund in the applicant's geographic
52 42 area.
52 43 e. The identification of community needs and the
52 44 manner in which additional funding will address those
52 45 needs.
52 46 f. The geographic diversity of awards.
52 47 5. Of any moneys received by a lead philanthropic
52 48 entity from the state, not more than five percent of
52 49 such moneys shall be used by the entity for
52 50 administrative purposes.
53 1 Sec. 92. NEW SECTION. 15E.306 REPORTS == AUDITS.
53 2 By January 31 of each year, the lead philanthropic
53 3 entity, in cooperation with the department, shall
53 4 publish an annual report of the activities conducted
53 5 pursuant to this division during the previous calendar
53 6 year and shall submit the report to the governor and
53 7 the general assembly. The annual report shall include
53 8 a listing of endowment funds and the amount of tax
53 9 credits authorized by the department.
53 10 Sec. 93. EFFECTIVE AND RETROACTIVE APPLICABILITY
53 11 DATES. This division of this Act, being deemed of
53 12 immediate importance, takes effect upon enactment and
53 13 is retroactively applicable to January 1, 2003, for
53 14 tax years beginning on or after that date.
53 15 DIVISION IX
53 16 TECHNOLOGY TRANSFER ADVISORS
53 17 Sec. 94. NEW SECTION. 7.23 TECHNOLOGY TRANSFER
53 18 ADVISOR.
53 19 Two technology transfer advisors shall be appointed
53 20 by the governor, serve at the pleasure of the
53 21 governor, and be located at offices at the university
53 22 of Iowa and Iowa state university of science and
53 23 technology. A technology transfer advisor is not a
53 24 state agency and is not subject to chapter 17A. A
53 25 technology transfer advisor shall do all of the
53 26 following:
53 27 1. Facilitate the transfer of technology developed
53 28 at the university of Iowa, the university of northern
53 29 Iowa, Iowa state university of science and technology,
53 30 community colleges, and private colleges and
53 31 universities.
53 32 2. Coordinate the technology transfer activities
53 33 at each of the public and private universities to
53 34 encourage the implementation of best practices in
53 35 technology transfer, establish measures of
53 36 performance, and design programs of continuous quality
53 37 improvement for each technology transfer office.
53 38 3. Establish technology transfer goals for the
53 39 state.
53 40 4. Provide technical assistance to Iowa=based
53 41 entrepreneurs associated with or unrelated to the
53 42 universities under the control of the state board of
53 43 regents regarding technology transfer=related issues.
53 44 The technical assistance shall include assistance in
53 45 the areas of patents and licensing, business
53 46 development and management, finance, production,
53 47 sales, and marketing.
53 48 5. Receive the technology transfer=related report
53 49 submitted by the state board of regents pursuant to
53 50 section 262.9, subsection 31.
54 1 6. To ensure economic growth, serve as a
54 2 coordinator between Iowa=based businesses and
54 3 businesses intending to locate in Iowa.
54 4 Sec. 95. Section 15.108, Code 2003, is amended by
54 5 adding the following new subsection:
54 6 NEW SUBSECTION. 12. TECHNOLOGY TRANSFER ADVISORS.
54 7 The department shall cooperate with and provide
54 8 staffing support to the technology transfer advisors
54 9 appointed pursuant to section 7.23.
54 10 Sec. 96. Section 262.9, Code 2003, is amended by
54 11 adding the following new subsections:
54 12 NEW SUBSECTION. 29. Actively encourage and
54 13 promote the transfer of technology and research at
54 14 universities under the control of the board to
54 15 commercial application, including the start=up of
54 16 business entities.
54 17 NEW SUBSECTION. 30. Give preference and technical
54 18 support to those faculty members and staff members
54 19 desiring to obtain licenses for intellectual property
54 20 rights created in whole or in part by the faculty
54 21 member or staff member. However, such preference
54 22 shall not be construed to be a right accruing to that
54 23 faculty member or staff member.
54 24 NEW SUBSECTION. 31. By January 15 of each year,
54 25 submit a report to the governor, through the
54 26 technology transfer advisors, and the general assembly
54 27 containing information from the previous calendar year
54 28 regarding all of the following:
54 29 a. Patents secured or applied for by each
54 30 university under the control of the board delineated
54 31 by university and by faculty member and staff member
54 32 responsible for the research or activity that resulted
54 33 in the patent. In the initial report filed by January
54 34 15, 2004, the board shall include an inventory of
54 35 patent portfolios with details concerning which
54 36 patents are creating financial benefit and the amount
54 37 of financial benefit and which patents are not
54 38 creating financial benefit and the amount invested in
54 39 those patents.
54 40 b. Research grants secured by each university
54 41 under the control of the board from both public and
54 42 private sources delineated by university and by
54 43 faculty member and staff member. The board shall also
54 44 include the same information for grant applications
54 45 that are denied.
54 46 c. The number of faculty members and staff members
54 47 at each university under the control of the board
54 48 involved in a start=up company.
54 49 d. The number of grant applications for research
54 50 received by each university under the control of the
55 1 board for start=up companies, the number of
55 2 applications approved, and the number of applications
55 3 denied.
55 4 e. The number of agreements entered into by
55 5 faculty members and staff members at each university
55 6 under the control of the board with foundations
55 7 affiliated with the universities relating to business
55 8 start=ups.
55 9 f. An accounting of the financial gain received by
55 10 each university under the control of the board
55 11 relating to patents sold, royalties received,
55 12 licensing fees, and any other remuneration received by
55 13 the university related to technology transfer.
55 14 g. The number of professional employees at each
55 15 university under the control of the board who assist
55 16 in the transfer of technology and research to
55 17 commercial application.
55 18 DIVISION X
55 19 IOWA ECONOMIC DEVELOPMENT
55 20 LOAN AND CREDIT GUARANTEE FUND
55 21 Sec. 97. NEW SECTION. 15E.221 SHORT TITLE.
55 22 This division shall be known and may be cited as
55 23 the "Iowa Economic Development Loan and Credit
55 24 Guarantee Fund Act".
55 25 Sec. 98. NEW SECTION. 15E.222 LEGISLATIVE
55 26 FINDING == PURPOSES.
55 27 1. The general assembly finds all of the
55 28 following:
55 29 a. That small and medium=sized businesses, in
55 30 general, and certain targeted industry businesses and
55 31 other qualified businesses, in particular, may not
55 32 qualify for conventional financing.
55 33 b. That the limited availability of credit for
55 34 export transactions limits the ability of small and
55 35 medium=sized businesses in this state to compete in
55 36 international markets.
55 37 c. That, to enhance competitiveness and foster
55 38 economic development, this state must focus on growth
55 39 in certain specific targeted industry businesses and
55 40 other qualified businesses, especially during a time
55 41 of war.
55 42 d. That the challenge for the public economic
55 43 sector is to create an atmosphere conducive to
55 44 economic growth, in conjunction with financial
55 45 institutions in the private sector, which fill the
55 46 gaps in credit availability and export finance, and
55 47 that allow the private sector to identify the lending
55 48 opportunities and foster decision making at the local
55 49 level.
55 50 2. The general assembly declares the purposes of
56 1 this division to be all of the following:
56 2 a. To create incentives and assistance to increase
56 3 the flow of private capital to targeted industry
56 4 businesses and other qualified businesses.
56 5 b. To promote industrial modernization and
56 6 technology adoption.
56 7 c. To encourage the retention and creation of
56 8 jobs.
56 9 d. To encourage the export of goods and services
56 10 sold by Iowa businesses in national and international
56 11 markets.
56 12 Sec. 99. NEW SECTION. 15E.223 DEFINITIONS.
56 13 As used in this division, unless the context
56 14 otherwise requires:
56 15 1. "Financial institution" means an institution
56 16 listed in section 422.61, subsection 1, or such other
56 17 financial institution as defined by the department for
56 18 purposes of this division.
56 19 2. "Program" means the loan and credit guarantee
56 20 program established in this division.
56 21 3. "Qualified business" means an existing or
56 22 proposed business entity with an annual average number
56 23 of employees not exceeding two hundred employees.
56 24 "Qualified business" does not include businesses
56 25 engaged primarily in retail sales, real estate, or the
56 26 provision of health care or other professional
56 27 services. "Qualified business" includes professional
56 28 services businesses that provide services to targeted
56 29 industry businesses or other entities within and
56 30 outside of this state.
56 31 4. "Targeted industry business" means an existing
56 32 or proposed business entity, including an emerging
56 33 small business or qualified business which is operated
56 34 for profit and which has a primary business purpose of
56 35 doing business in at least one of the targeted
56 36 industries designated by the department which include
56 37 life sciences, software and information technology,
56 38 advanced manufacturing, value=added agriculture, and
56 39 any other industry designated as a targeted industry
56 40 by the loan and credit guarantee advisory board.
56 41 Sec. 100. NEW SECTION. 15E.224 LOAN AND CREDIT
56 42 GUARANTEE PROGRAM.
56 43 1. The department shall, with the advice of the
56 44 loan and credit guarantee advisory board, establish
56 45 and administer a loan and credit guarantee program.
56 46 The department, pursuant to agreements with financial
56 47 institutions, shall provide loan and credit
56 48 guarantees, or other forms of credit guarantees for
56 49 qualified businesses and targeted industry businesses
56 50 for eligible project costs. A loan or credit
57 1 guarantee provided under the program may stand alone
57 2 or may be used in conjunction with or to enhance other
57 3 loans or credit guarantees, offered by private, state,
57 4 or federal entities. However, the department shall
57 5 not in any manner directly or indirectly pledge the
57 6 credit of the state. Eligible project costs include
57 7 expenditures for productive equipment and machinery,
57 8 working capital for operations and export
57 9 transactions, research and development, marketing, and
57 10 such other costs as the department may so designate.
57 11 2. A loan or credit guarantee or other form of
57 12 credit guarantee provided under the program to a
57 13 participating financial institution for a single
57 14 qualified business or targeted industry business shall
57 15 not exceed one million dollars in value. Loan or
57 16 credit guarantees or other forms of credit guarantees
57 17 provided under the program to more than one
57 18 participating financial institution for a single
57 19 qualified business or targeted industry business shall
57 20 not exceed ten million dollars in value.
57 21 3. In administering the program, the department
57 22 shall consult and cooperate with financial
57 23 institutions in this state and with the loan and
57 24 credit guarantee advisory board. Administrative
57 25 procedures and application procedures, as practicable,
57 26 shall be responsive to the needs of qualified
57 27 businesses, targeted industry businesses, and
57 28 financial institutions, and shall be consistent with
57 29 prudent investment and lending practices and criteria.
57 30 4. Each participating financial institution shall
57 31 identify and underwrite potential lending
57 32 opportunities with qualified businesses and targeted
57 33 industry businesses. Upon a determination by a
57 34 participating financial institution that a qualified
57 35 business or targeted industry business meets the
57 36 underwriting standards of the financial institution,
57 37 subject to the approval of a loan or credit guarantee,
57 38 the financial institution shall submit the
57 39 underwriting information and a loan or credit
57 40 guarantee application to the department.
57 41 5. The department, with the advice of the loan and
57 42 credit guarantee advisory board, shall adopt a loan or
57 43 credit guarantee application procedure for a financial
57 44 institution on behalf of a qualified business or
57 45 targeted industry business.
57 46 6. Upon approval of a loan or credit guarantee,
57 47 the department shall enter into a loan or credit
57 48 guarantee agreement with the participating financial
57 49 institution. The agreement shall specify all of the
57 50 following:
58 1 a. The fee to be charged to the financial
58 2 institution.
58 3 b. The evidence of debt assurance of, and security
58 4 for, the loan or credit guarantee.
58 5 c. A loan or credit guarantee that does not exceed
58 6 fifteen years.
58 7 d. Any other terms and conditions considered
58 8 necessary or desirable by the department.
58 9 7. The department, with the advice of the loan and
58 10 credit guarantee advisory board, may adopt loan and
58 11 credit guarantee application procedures that allow a
58 12 qualified business or targeted industry business to
58 13 apply directly to the department for a preliminary
58 14 guarantee commitment. A preliminary guarantee
58 15 commitment may be issued by the department subject to
58 16 the qualified business or targeted industry business
58 17 securing a commitment for financing from a financial
58 18 institution. The application procedures shall specify
58 19 the process by which a financial institution may
58 20 obtain a final loan and credit guarantee.
58 21 Sec. 101. NEW SECTION. 15E.225 TERMS == FEES.
58 22 1. When entering into a loan or credit guarantee
58 23 agreement, the department, with the advice of the loan
58 24 and credit guarantee advisory board, shall establish
58 25 fees and other terms for participation in the program
58 26 by qualified businesses and targeted industry
58 27 businesses.
58 28 2. The department, with due regard for the
58 29 possibility of losses and administrative costs and
58 30 with the advice of the loan and credit guarantee
58 31 advisory board, shall set fees and other terms at
58 32 levels sufficient to assure that the program is self=
58 33 financing.
58 34 3. For a preliminary guarantee commitment, the
58 35 department may charge a qualified business or targeted
58 36 industry business a preliminary guarantee commitment
58 37 fee. The application fee shall be in addition to any
58 38 other fees charged by the department under this
58 39 section and shall not exceed one thousand dollars for
58 40 an application.
58 41 Sec. 102. NEW SECTION. 15E.226 LOAN AND CREDIT
58 42 GUARANTEE ADVISORY BOARD.
58 43 The department, in consultation with the
58 44 superintendent of banking, shall establish a loan and
58 45 credit guarantee advisory board. The advisory board
58 46 shall provide the department with technical advice
58 47 regarding the administration of the program, including
58 48 the adoption of administrative rules pursuant to
58 49 chapter 17A. The advisory board shall review and
58 50 provide recommendations regarding all applications
59 1 under the program. Members of the advisory board are
59 2 entitled to receive reimbursement for actual expenses
59 3 incurred while engaged in the performance of official
59 4 duties. Advisory board members may also be eligible
59 5 to receive compensation as provided in section 7E.6.
59 6 The director of the department shall budget moneys to
59 7 pay the compensation and expenses of the advisory
59 8 board. The provisions of this section relating to the
59 9 adoption of administrative rules shall be construed
59 10 narrowly.
59 11 DIVISION XI
59 12 ECONOMIC DEVELOPMENT ASSISTANCE AND DATA COLLECTION
59 13 Sec. 103. NEW SECTION. 15E.118 BUSINESS START=UP
59 14 INFORMATION == INTERNET WEB SITE.
59 15 The department shall provide information through an
59 16 internet web site and a toll=free telephone service to
59 17 assist persons interested in establishing a commercial
59 18 facility or engaging in a commercial activity. The
59 19 information shall include all of the following:
59 20 1. Assistance, information, and guidance for
59 21 start=up businesses.
59 22 2. Information gathered by the department pursuant
59 23 to section 15E.17, subsection 2.
59 24 3. Personal and corporate income tax information.
59 25 4. Information regarding financial assistance and
59 26 incentives available to businesses.
59 27 5. Workforce availability in the state presented
59 28 in a regional format.
59 29 Sec. 104. NEW SECTION. 15E.119 ECONOMIC
59 30 DEVELOPMENT=RELATED DATA COLLECTION.
59 31 1. The department shall interview any business
59 32 that considered locating in Iowa but decided to locate
59 33 elsewhere. The department shall attempt to determine
59 34 factors that affected the location decision of the
59 35 business.
59 36 2. The department shall interview any business
59 37 that closes major operations in the state or dissolves
59 38 the business's corporate status in an effort to
59 39 identify factors that led to the closure or
59 40 dissolution.
59 41 3. By January 15 of each year, the department
59 42 shall submit a written report to the general assembly
59 43 that summarizes the information collected pursuant to
59 44 this section and provides suggested amendments to the
59 45 Code of Iowa and the Iowa administrative code designed
59 46 to stimulate and expand the state's economy.
59 47 Sec. 105. INTERNET WEB SITE DEVELOPMENT. In
59 48 developing the internet web site required in section
59 49 15E.118, the department of economic development shall
59 50 examine similar efforts in other states and
60 1 incorporate the best practices.
60 2 DIVISION XII
60 3 CULTURAL AND ENTERTAINMENT DISTRICTS
60 4 Sec. 106. NEW SECTION. 303.3B CULTURAL AND
60 5 ENTERTAINMENT DISTRICTS.
60 6 1. The department of cultural affairs shall
60 7 establish and administer a cultural and entertainment
60 8 district certification program. The program shall
60 9 encourage the growth of communities through the
60 10 development of areas within a city or county for
60 11 public and private uses related to cultural and
60 12 entertainment purposes.
60 13 2. A city or county may create and designate a
60 14 cultural and entertainment district subject to
60 15 certification by the department of cultural affairs,
60 16 in consultation with the department of economic
60 17 development. A cultural and entertainment district
60 18 shall consist of a geographic area not exceeding one
60 19 square mile in size. A cultural and entertainment
60 20 district certification shall remain in effect for ten
60 21 years following the date of certification. Two or
60 22 more cities or counties may apply jointly for
60 23 certification of a district that extends across a
60 24 common boundary. Through the adoption of
60 25 administrative rules, the department of cultural
60 26 affairs shall develop a certification application for
60 27 use in the certification process. The provisions of
60 28 this subsection relating to the adoption of
60 29 administrative rules shall be construed narrowly.
60 30 3. The department of cultural affairs shall
60 31 encourage development projects and activities located
60 32 in certified cultural and entertainment districts
60 33 through incentives under cultural grant programs
60 34 pursuant to section 303.3, chapter 303A, and any other
60 35 grant programs.
60 36 DIVISION XIII
60 37 WORKFORCE ISSUES
60 38 Sec. 107. NEW SECTION. 15A.10 JOB RETENTION ==
60 39 INCENTIVES.
60 40 1. In order to assure the retention of existing
60 41 jobs that would otherwise be lost, the director of the
60 42 department of economic development may authorize
60 43 incentives and assistance provided to a business under
60 44 this section for a period not to exceed ten years upon
60 45 finding the following:
60 46 a. The business currently employing, at one place
60 47 of business, at least one thousand employees is likely
60 48 to close or substantially reduce employment.
60 49 b. The business agrees to remain in the state for
60 50 at least ten years and invest at least fifteen million
61 1 dollars to retool or upgrade facilities.
61 2 2. Incentives and assistance that may be
61 3 authorized by the director include any of the
61 4 following:
61 5 a. New jobs credit from withholding, as provided
61 6 in section 15.331.
61 7 b. Sales, services, and use tax refund, as
61 8 provided in section 15.331A.
61 9 c. Investment tax credit, as provided in section
61 10 15.333.
61 11 d. Research activities tax credit, as provided in
61 12 section 15.335.
61 13 3. A business shall enter into an agreement with
61 14 the department and the city or county specifying the
61 15 terms and conditions that must be met in exchange for
61 16 the incentives and assistance authorized in this
61 17 section. The agreement shall specify how the
61 18 incentives will be repaid in the event the business
61 19 fails to meet or maintain the terms and conditions of
61 20 the agreement.
61 21 DIVISION XIV
61 22 UNIVERSITY=BASED RESEARCH UTILIZATION PROGRAM
61 23 Sec. 108. NEW SECTION. 262B.11 UNIVERSITY=BASED
61 24 RESEARCH UTILIZATION PROGRAM.
61 25 1. The department of economic development shall
61 26 establish and administer a university=based research
61 27 utilization program for purposes of encouraging the
61 28 utilization of university=based research, primarily in
61 29 the area of high technology, in new or existing
61 30 businesses. The program shall include the three
61 31 universities under the control of the state board of
61 32 regents and all accredited private universities
61 33 located in the state.
61 34 2. A new or existing business that utilizes a
61 35 technology developed by an employee at a university
61 36 under the control of the state board of regents may
61 37 apply to the department of economic development for
61 38 approval to participate in the university=based
61 39 research utilization program. The department shall
61 40 approve an applicant if the applicant meets all of the
61 41 following criteria:
61 42 a. The applicant utilizes a technology developed
61 43 by an employee at a university under the control of
61 44 the state board of regents, provided that the
61 45 technology has received a patent after the effective
61 46 date of this Act. If the applicant has been in
61 47 existence more than one year prior to applying, the
61 48 applicant shall organize a separate company to utilize
61 49 the technology. For purposes of this section, the
61 50 separate company shall be considered the applicant
62 1 and, if approved, the approved business.
62 2 b. The applicant develops a five=year business
62 3 plan approved by the department. The plan shall
62 4 include information concerning the applicant's Iowa
62 5 employment goals and projected impact on the Iowa
62 6 economy. The department shall only approve plans
62 7 showing sufficient potential impact on Iowa employment
62 8 and economic development.
62 9 c. The applicant meets a minimum=size business
62 10 standard determined by the department.
62 11 d. The applicant provides annual reports to the
62 12 department that include employment statistics for the
62 13 applicant and the total taxable wages paid to Iowa
62 14 employees and reported to the department of revenue
62 15 and finance pursuant to section 422.16.
62 16 3. A business approved under the program and the
62 17 university employee responsible for the development of
62 18 the technology utilized by the approved business shall
62 19 be eligible for a tax credit. The credit shall be
62 20 allowed against the taxes imposed in chapter 422,
62 21 divisions II and III. An individual may claim a tax
62 22 credit under this section of a partnership, limited
62 23 liability company, S corporation, estate, or trust
62 24 electing to have income taxed directly to the
62 25 individual. The amount claimed by the individual
62 26 shall be based upon the pro rata share of the
62 27 individual's earnings from the partnership, limited
62 28 liability company, S corporation, estate, or trust. A
62 29 tax credit shall not be claimed under this subsection
62 30 unless a tax credit certificate issued by the
62 31 department of economic development is attached to the
62 32 taxpayer's tax return for the tax year for which the
62 33 tax credit is claimed. The amount of a tax credit
62 34 allowed under this subsection shall equal the amount
62 35 listed on a tax credit certificate issued by the
62 36 department of economic development pursuant to
62 37 subsection 4. A tax credit certificate shall not be
62 38 transferable. Any tax credit in excess of the
62 39 taxpayer's liability for the tax year may be credited
62 40 to the taxpayer's tax liability for the following five
62 41 years or until depleted, whichever occurs first. A
62 42 tax credit shall not be carried back to a tax year
62 43 prior to the tax year in which the taxpayer redeems
62 44 the tax credit.
62 45 4. For the five tax years following the tax year
62 46 in which a business is approved under the program, the
62 47 department of revenue and finance shall provide the
62 48 department of economic development with information
62 49 required by the department of economic development
62 50 from each tax return filed by the approved business.
63 1 Upon receiving the tax return=related information, the
63 2 department of economic development shall do all of the
63 3 following:
63 4 a. Review the information provided by the
63 5 department of revenue and finance pursuant to this
63 6 subsection and the annual report submitted by the
63 7 applicant pursuant to subsection 2, paragraph "d". If
63 8 the department determines that the business activities
63 9 of the applicant are not providing the benefits to
63 10 Iowa employment and economic development projected in
63 11 the applicant's approved five=year business plan, the
63 12 department shall not issue tax credit certificates for
63 13 that year to the applicant or university employee and
63 14 shall determine any related university share to be
63 15 equal to zero for that year.
63 16 b. Effective for the fiscal year beginning July 1,
63 17 2004, and for subsequent fiscal years, issue a tax
63 18 credit certificate to the approved business and the
63 19 university employee responsible for the development of
63 20 the technology utilized by the approved business in an
63 21 amount determined pursuant to subsection 5. A tax
63 22 credit certificate shall contain the taxpayer's name,
63 23 address, tax identification number, the amount of the
63 24 tax credit, and other information required by the
63 25 department of revenue and finance.
63 26 c. (1) Determine the university share which is
63 27 equal to the value of thirty percent of the tax
63 28 liability of the approved business for purposes of
63 29 making an appropriation pursuant to section 262B.12,
63 30 if enacted by 2003 Iowa Acts, House File 683 or
63 31 another Act, to the university where the technology
63 32 utilized by the approved business was developed. A
63 33 university share shall not exceed two hundred twenty=
63 34 five thousand dollars per year per technology
63 35 utilized. For each technology utilized, the aggregate
63 36 university share over a five=year period shall not
63 37 exceed six hundred thousand dollars.
63 38 (2) The department shall maintain records for each
63 39 university during each fiscal year regarding the
63 40 university share each university is entitled to
63 41 receive through the appropriation in section 262B.12,
63 42 if enacted by 2003 Iowa Acts, House File 683 or
63 43 another Act. A university shall be entitled to
63 44 receive the total university share for that particular
63 45 university during the previous fiscal year.
63 46 d. For the fiscal year beginning July 1, 2004, not
63 47 more than two million dollars worth of certificates
63 48 shall be issued pursuant to paragraph "b". For the
63 49 fiscal year beginning July 1, 2005, and every fiscal
63 50 year thereafter, not more than ten million dollars
64 1 worth of certificates shall be issued pursuant to
64 2 paragraph "b".
64 3 5. The tax credit certificates issued by the
64 4 department for each of the five years following the
64 5 tax year in which the business is approved under the
64 6 program shall be for the following amounts:
64 7 a. For the approved business, the value of the tax
64 8 credit certificate shall equal thirty percent of the
64 9 tax liability of the approved business. The value of
64 10 a certificate issued to an approved business shall not
64 11 exceed two hundred twenty=five thousand dollars. The
64 12 total aggregate value of certificates issued over a
64 13 five=year period to an approved business shall not
64 14 exceed six hundred thousand dollars.
64 15 b. For the university employee responsible for the
64 16 development of the technology utilized by the approved
64 17 business, the value of the tax credit certificate
64 18 shall equal ten percent of the tax liability of the
64 19 approved business. If more than one employee is
64 20 responsible for the development of the technology, the
64 21 value equal to ten percent of the tax liability of the
64 22 approved business shall be divided equally and
64 23 individual tax credit certificates shall be issued to
64 24 each employee responsible for the development of the
64 25 technology. Each year, the total value of a
64 26 certificate or certificates issued for a utilized
64 27 technology shall not exceed seventy=five thousand
64 28 dollars. For each technology utilized, the total
64 29 aggregate value of certificates issued over a five=
64 30 year period to the university employee responsible for
64 31 the development of the technology shall not exceed two
64 32 hundred thousand dollars.
64 33 6. The department of economic development shall
64 34 notify the department of revenue and finance when a
64 35 tax credit certificate is issued pursuant to
64 36 subsection 4. The notification shall include the name
64 37 and tax identification number appearing on any tax
64 38 credit certificate.
64 39 Sec. 109. NEW SECTION. 422.11H UNIVERSITY=BASED
64 40 RESEARCH UTILIZATION PROGRAM TAX CREDIT.
64 41 The taxes imposed under this division, less the
64 42 credits allowed under sections 422.12 and 422.12B,
64 43 shall be reduced by a university=based research
64 44 utilization program tax credit authorized pursuant to
64 45 section 262B.11.
64 46 Sec. 110. Section 422.33, Code 2003, is amended by
64 47 adding the following new subsection:
64 48 NEW SUBSECTION. 14. The taxes imposed under this
64 49 division shall be reduced by a university=based
64 50 research utilization program tax credit authorized
65 1 pursuant to section 262B.11.
65 2 DIVISION XV
65 3 FUTURE REPEAL
65 4 Sec. 111. The divisions of this Act designated the
65 5 grow Iowa board and fund, the value=added agricultural
65 6 products and processes financial assistance program,
65 7 the endow Iowa grants, the technology transfer
65 8 advisors, the Iowa economic development loan and
65 9 credit guarantee fund, the economic development
65 10 assistance and data collection, the cultural and
65 11 entertainment districts, the workforce issues, and the
65 12 university=based research utilization program, are
65 13 repealed effective June 30, 2010.
65 14 DIVISION XVI
65 15 LIABILITY REFORM
65 16 Sec. 112. Section 668.12, Code 2003, is amended to
65 17 read as follows:
65 18 668.12 LIABILITY FOR PRODUCTS == STATE OF THE ART
65 19 DEFENSE DEFENSES.
65 20 1. In any action brought pursuant to this chapter
65 21 against an assembler, designer, supplier of
65 22 specifications, distributor, manufacturer, or seller
65 23 for damages arising from an alleged defect in the
65 24 design, testing, manufacturing, formulation,
65 25 packaging, warning, or labeling of a product, a
65 26 percentage of fault shall not be assigned to such
65 27 persons if they plead and prove that the product
65 28 conformed to the state of the art in existence at the
65 29 time the product was designed, tested, manufactured,
65 30 formulated, packaged, provided with a warning, or
65 31 labeled.
65 32 2. Nothing contained in this section subsection 1
65 33 shall diminish the duty of an assembler, designer,
65 34 supplier of specifications, distributor, manufacturer
65 35 or seller to warn concerning subsequently acquired
65 36 knowledge of a defect or dangerous condition that
65 37 would render the product unreasonably dangerous for
65 38 its foreseeable use or diminish the liability for
65 39 failure to so warn.
65 40 3. An assembler, designer, supplier of
65 41 specifications, distributor, manufacturer, or seller
65 42 shall not be subject to liability under a theory of
65 43 civil conspiracy unless the person knowingly and
65 44 voluntarily entered into an agreement, express or
65 45 implied, to participate in a common plan with the
65 46 intent to commit a tortious act upon another. Mere
65 47 membership in a trade or industrial association or
65 48 group is not, in and of itself, evidence of such an
65 49 agreement.
65 50 Sec. 113. Section 668A.1, subsection 1, Code 2003,
66 1 is amended to read as follows:
66 2 1. In a trial of a claim involving the request for
66 3 punitive or exemplary damages, the court shall
66 4 instruct the jury to answer special interrogatories
66 5 or, if there is no jury, shall make findings,
66 6 indicating all of the following:
66 7 a. Whether, by a preponderance of clear,
66 8 convincing, and satisfactory evidence, the conduct of
66 9 the defendant from which the claim arose constituted
66 10 willful and wanton disregard for the rights or safety
66 11 of another.
66 12 b. Whether the conduct of the defendant was
66 13 directed specifically at the claimant, or at the
66 14 person from which the claimant's claim is derived.
66 15 b. Whether, by a preponderance of clear and
66 16 convincing evidence, the conduct of the defendant from
66 17 which the claim arose constituted actual malice.
66 18 Sec. 114. NEW SECTION. 668A.2 DEFINITIONS.
66 19 As used in this chapter, the following terms shall
66 20 have the following meanings:
66 21 1. "Clear and convincing evidence" means evidence
66 22 which leaves no serious or substantial doubt about the
66 23 correctness of the conclusions drawn from the
66 24 evidence. It is more than a preponderance of
66 25 evidence, but less than beyond a reasonable doubt.
66 26 2. "Malice" means either conduct which is
66 27 specifically intended by the defendant to cause
66 28 tangible or intangible serious injury to the plaintiff
66 29 or conduct that is carried out by the defendant both
66 30 with a flagrant indifference to the rights of the
66 31 plaintiff and with a subjective awareness that such
66 32 conduct will result in tangible serious injury.
66 33 Sec. 115. NEW SECTION. 668A.3 AWARD OF PUNITIVE
66 34 OR EXEMPLARY DAMAGES == PROOF == STANDARD.
66 35 Punitive or exemplary damages shall only be awarded
66 36 where the plaintiff proves by clear and convincing
66 37 evidence that the plaintiff's harm was the result of
66 38 actual malice. This burden of proof shall not be
66 39 satisfied by proof of any degree of negligence,
66 40 including gross negligence.
66 41 Sec. 116. APPLICABILITY. This division of this
66 42 Act, relating to liability reform, applies to cases
66 43 filed on or after July 1, 2003.
66 44 DIVISION XVII
66 45 WORKERS' COMPENSATION
66 46 Sec. 117. Section 85.34, subsection 2, unnumbered
66 47 paragraph 1, Code 2003, is amended to read as follows:
66 48 Compensation for permanent partial disability shall
66 49 begin at the termination of the healing period
66 50 provided in subsection 1. The compensation shall be
67 1 in addition to the benefits provided by sections 85.27
67 2 and 85.28. The compensation shall be based only upon
67 3 the extent of the disability related to the injury
67 4 received and upon the basis of eighty percent per week
67 5 of the employee's average spendable weekly earnings,
67 6 but not more than a weekly benefit amount, rounded to
67 7 the nearest dollar, equal to one hundred eighty=four
67 8 percent of the statewide average weekly wage paid
67 9 employees as determined by the department of workforce
67 10 development under section 96.19, subsection 36, and in
67 11 effect at the time of the injury. The minimum weekly
67 12 benefit amount shall be equal to the weekly benefit
67 13 amount of a person whose gross weekly earnings are
67 14 thirty=five percent of the statewide average weekly
67 15 wage. For all cases of permanent partial disability
67 16 compensation shall be paid as follows:
67 17 Sec. 118. Section 85.34, subsection 2, paragraph
67 18 u, Code 2003, is amended by adding the following new
67 19 unnumbered paragraph after unnumbered paragraph 2 as
67 20 follows:
67 21 NEW UNNUMBERED PARAGRAPH. When an employee makes a
67 22 claim for benefits under this subsection, the employer
67 23 is not liable for that portion of the employee's
67 24 present disability caused by a prior work=related
67 25 injury or illness that was sustained by the employee
67 26 while the employee was employed by a different
67 27 employer. When an employee's present disability
67 28 includes disability caused by a prior work=related
67 29 injury or illness that was sustained by the employee
67 30 while in the employ of the same employer, the employer
67 31 is liable for compensating all of the employee's work=
67 32 related disability sustained by the employee while in
67 33 the employ of the employer, except that any portion of
67 34 the disability that was previously compensated by the
67 35 employer shall be deducted from the employer's
67 36 obligation to pay benefits for the employee's present
67 37 disability. If an employee's present disability is
67 38 reduced by a portion of disability sustained from
67 39 prior work=related injuries or illnesses for which the
67 40 employee has already been compensated by the same
67 41 employer, then the employee shall receive compensation
67 42 for the remaining disability caused by the present
67 43 work=related injury or illness plus an additional ten
67 44 percent of the amount of the increase in disability.
67 45 Sec. 119. APPLICABILITY. This division of this
67 46 Act, relating to workers' compensation, applies to an
67 47 injury occurring on or after July 1, 2003.
67 48 DIVISION XVIII
67 49 FINANCIAL SERVICES
67 50 Sec. 120. Section 537.2502, subsections 3 and 6,
68 1 Code 2003, are amended to read as follows:
68 2 3. A delinquency charge shall not be collected
68 3 under subsection 1, paragraph "a", on an installment
68 4 which that is paid in full within ten days after its
68 5 scheduled or deferred installment due date even though
68 6 an earlier maturing installment or a delinquency or
68 7 deferral charge on an earlier installment may not have
68 8 been paid in full. For purposes of this subsection,
68 9 payments associated with a precomputed transaction are
68 10 applied first to current installments and then to
68 11 delinquent installments.
68 12 6. A delinquency charge shall not be collected
68 13 under subsection 4 on a payment which associated with
68 14 a precomputed transaction that is paid in full on or
68 15 before its scheduled or deferred due date even though
68 16 an earlier maturing payment or a delinquency or
68 17 deferred charge on an earlier payment has not been
68 18 paid in full. For purposes of this subsection,
68 19 payments are applied first to amounts due for the
68 20 current billing cycle and then to delinquent payments.
68 21 Sec. 121. Section 537.2601, subsection 1, Code
68 22 2003, is amended to read as follows:
68 23 1. Except as provided in subsection 2, with With
68 24 respect to a credit transaction other than a consumer
68 25 credit transaction, the parties may contract for the
68 26 payment by the debtor of any finance or other charge
68 27 as permitted by law. Except with respect to debt
68 28 obligations issued by a government, governmental
68 29 agency or instrumentality, in calculating any finance
68 30 charge contracted for, any month may be counted as
68 31 one=twelfth of a year, but a day is to be counted as
68 32 one three=hundred sixty=fifth of a year.
68 33 DIVISION XIX
68 34 UNEMPLOYMENT COMPENSATION SURCHARGE
68 35 Sec. 122. Section 96.7, subsection 12, paragraph
68 36 a, Code 2003, is amended to read as follows:
68 37 a. An employer other than a governmental entity or
68 38 a nonprofit organization, subject to this chapter,
68 39 shall pay an administrative contribution surcharge
68 40 equal in amount to one=tenth of one percent of federal
68 41 taxable wages, as defined in section 96.19, subsection
68 42 37, paragraph "b", subject to the surcharge formula to
68 43 be developed by the department under this paragraph.
68 44 The department shall develop a surcharge formula that
68 45 provides a target revenue level of no greater than six
68 46 million five hundred twenty=five thousand dollars
68 47 annually for calendar years 2003, 2004, and 2005 and a
68 48 target revenue level of no greater than three million
68 49 two hundred sixty=two thousand five hundred dollars
68 50 for calendar year 2006 and each subsequent calendar
69 1 year. The department shall reduce the administrative
69 2 contribution surcharge established for any calendar
69 3 year proportionate to any federal government funding
69 4 that provides an increased allocation of moneys for
69 5 workforce development offices, under the federal
69 6 employment services financing reform legislation. Any
69 7 administrative contribution surcharge revenue that is
69 8 collected in calendar year 2002 2003, 2004, or 2005 in
69 9 excess of six million five hundred twenty=five
69 10 thousand dollars or in calendar year 2006 or a
69 11 subsequent calendar year in excess of three million
69 12 two hundred sixty=two thousand five hundred dollars
69 13 shall be deducted from the amount to be collected in
69 14 the subsequent calendar year 2003 before the
69 15 department establishes the administrative contribution
69 16 surcharge. The department shall recompute the amount
69 17 as a percentage of taxable wages, as defined in
69 18 section 96.19, subsection 37, and shall add the
69 19 percentage surcharge to the employer's contribution
69 20 rate determined under this section. The percentage
69 21 surcharge shall be capped at a maximum of seven
69 22 dollars per employee. The department shall adopt
69 23 rules prescribing the manner in which the surcharge
69 24 will be collected. Interest shall accrue on all
69 25 unpaid surcharges under this subsection at the same
69 26 rate as on regular contributions and shall be
69 27 collectible in the same manner. Interest accrued and
69 28 collected under this paragraph and interest earned and
69 29 credited to the fund under paragraph "b" shall be used
69 30 by the department only for the purposes set forth in
69 31 paragraph "c".
69 32 Sec. 123. Section 96.7, subsection 12, paragraph
69 33 d, Code 2003, is amended to read as follows:
69 34 d. This subsection is repealed July 1, 2003 2006,
69 35 and the repeal is applicable to contribution rates for
69 36 calendar year 2004 2007 and subsequent calendar years.
69 37 Sec. 124. EFFECTIVE DATE. This division of this
69 38 Act, concerning the unemployment compensation
69 39 surcharge, being deemed of immediate importance, takes
69 40 effect upon enactment.
69 41 DIVISION XX
69 42 ECONOMIC DEVELOPMENT
69 43 Sec. 125. NEW SECTION. 15E.18 CITIES, COUNTIES,
69 44 AND REGIONS == SITE PREPARATION FOR TARGETED ECONOMIC
69 45 DEVELOPMENT.
69 46 1. For purposes of this section, "region" means a
69 47 group of two or more contiguous counties that
69 48 establishes a single, focused economic development
69 49 effort.
69 50 2. A city, county, or region, subject to the
70 1 approval of the property owner, may designate an area
70 2 within the boundaries of the city, county, or region
70 3 for a specific type of targeted economic development.
70 4 The specific type of targeted economic development
70 5 shall be one of the following:
70 6 a. Manufacturing.
70 7 b. Light industrial.
70 8 c. Warehouse and distribution.
70 9 d. Office parks.
70 10 e. Business and commerce parks.
70 11 f. Research and development.
70 12 3. A city, county, or region that designates an
70 13 area for a specific type of targeted economic
70 14 development may apply to the department for purposes
70 15 of certifying the area as a preapproved development
70 16 site. The department shall develop criteria for the
70 17 certification process.
70 18 4. Prior to a specific project being developed, a
70 19 city, county, or region designating the area for
70 20 targeted economic development pursuant to this section
70 21 may apply for and obtain appropriate licenses,
70 22 permits, and approvals for the type of targeted
70 23 economic development project desired for the area.
70 24 Sec. 126. NEW SECTION. 15E.19 REGULATORY
70 25 ASSISTANCE.
70 26 1. The department of economic development shall
70 27 coordinate all regulatory assistance for the state of
70 28 Iowa. Each state agency with regulatory programs for
70 29 business shall maintain a coordinator within the
70 30 office of the director or the administrative division
70 31 of the state agency. Each coordinator shall do all of
70 32 the following:
70 33 a. Serve as the department of economic
70 34 development's primary contact for regulatory affairs.
70 35 b. Provide regulatory requirements to businesses
70 36 and represent the agency in the private sector.
70 37 c. Monitor permit applications and provide timely
70 38 permit status information to the department of
70 39 economic development.
70 40 d. Have the ability to require regulatory staff
70 41 participation in negotiations and discussions with
70 42 businesses.
70 43 e. Notify the department of economic development
70 44 regarding proposed rulemaking activities that impact a
70 45 regulatory program and any subsequent changes to a
70 46 regulatory program.
70 47 2. The department of economic development shall,
70 48 in consultation with the coordinators described in
70 49 this section, examine, and to the extent permissible,
70 50 assist in the implementation of methods, including the
71 1 possible establishment of an electronic database, to
71 2 streamline the process for issuing permits to
71 3 business.
71 4 3. By January 15 of each year, the department of
71 5 economic development shall submit a written report to
71 6 the general assembly regarding the provision of
71 7 regulatory assistance by state agencies, including the
71 8 department's efforts, and its recommendations and
71 9 proposed solutions, to streamline the process of
71 10 issuing permits to business.
71 11 Sec. 127. NEW SECTION. 15E.20 PERMIT APPROVAL
71 12 REQUIREMENTS.
71 13 A state agency which requires a permit, license, or
71 14 other regulatory approval shall issue or deny the
71 15 permit, license, or other regulatory approval within
71 16 ninety days of the receipt by the state agency of an
71 17 application. Unless such a state agency communicates
71 18 any concerns to or requests additional information
71 19 from an applicant within ten days of the receipt of
71 20 the application, the application shall be considered
71 21 complete. A permit, license, or other regulatory
71 22 approval not issued or denied within the ninety days
71 23 shall be deemed to be issued and valid.
71 24 DIVISION XXI
71 25 UTILITY SALES TAX EXEMPTION
71 26 Sec. 128. Section 422.45, subsection 61, paragraph
71 27 b, subparagraphs (2), (3), (4), and (5), Code 2003,
71 28 are amended to read as follows:
71 29 (2) If the date of the utility billing or meter
71 30 reading cycle of the residential customer for the
71 31 sale, furnishing, or service of metered gas and
71 32 electricity is on or after January 1, 2003, through
71 33 December 31, 2003 June 30, 2008, or if the sale,
71 34 furnishing, or service of fuel for purposes of
71 35 residential energy and the delivery of the fuel occurs
71 36 on or after January 1, 2003, through December 31, 2003
71 37 June 30, 2008, the rate of tax is three percent of the
71 38 gross receipts.
71 39 (3) If the date of the utility billing or meter
71 40 reading cycle of the residential customer for the
71 41 sale, furnishing, or service of metered gas and
71 42 electricity is on or after January 1, 2004 July 1,
71 43 2008, through December 31, 2004 June 30, 2009, or if
71 44 the sale, furnishing, or service of fuel for purposes
71 45 of residential energy and the delivery of the fuel
71 46 occurs on or after January 1, 2004 July 1, 2008,
71 47 through December 31, 2004 June 30, 2009, the rate of
71 48 tax is two percent of the gross receipts.
71 49 (4) If the date of the utility billing or meter
71 50 reading cycle of the residential customer for the
72 1 sale, furnishing, or service of metered gas and
72 2 electricity is on or after January 1, 2005 July 1,
72 3 2009, through December 31, 2005 June 30, 2010, or if
72 4 the sale, furnishing, or service of fuel for purposes
72 5 of residential energy and the delivery of the fuel
72 6 occurs on or after January 1, 2005 July 1, 2009,
72 7 through December 31, 2005 June 30, 2010, the rate of
72 8 tax is one percent of the gross receipts.
72 9 (5) If the date of the utility billing or meter
72 10 reading cycle of the residential customer for the
72 11 sale, furnishing, or service of metered gas and
72 12 electricity is on or after January 1, 2006 July 1,
72 13 2010, or if the sale, furnishing, or service of fuel
72 14 for purposes of residential energy and the delivery of
72 15 the fuel occurs on or after January 1, 2006 July 1,
72 16 2010, the rate of tax is zero percent of the gross
72 17 receipts.
72 18 DIVISION XXII
72 19 STATE ASSISTANCE FOR EDUCATIONAL INFRASTRUCTURE
72 20 Sec. 129. NEW SECTION. 292A.1 DEFINITIONS.
72 21 As used in this chapter, unless the context
72 22 otherwise requires:
72 23 1. "Capacity per pupil" means the sum of a school
72 24 district's property tax infrastructure capacity per
72 25 pupil and the sales tax capacity per pupil.
72 26 2. "Committee" means the school budget review
72 27 committee established in section 257.30.
72 28 3. "Department" means the department of education
72 29 established in section 256.1.
72 30 4. "Fund" means the state assistance for
72 31 educational infrastructure fund created in section
72 32 292A.3.
72 33 5. "Local match percentage" means a percentage
72 34 equivalent to either of the following, whichever is
72 35 less:
72 36 a. Fifty percent.
72 37 b. The quotient of a school district's capacity
72 38 per pupil divided by the capacity per pupil of the
72 39 school district at the fortieth percentile, multiplied
72 40 by fifty percent, except that the percentage in this
72 41 paragraph shall not be less than twenty percent.
72 42 6. "Program" means the state assistance for
72 43 educational infrastructure program established in
72 44 section 292A.2.
72 45 7. "Property tax infrastructure capacity per
72 46 pupil" means the sum of a school district's levies
72 47 under sections 298.2 and 298.18 when the levies are
72 48 imposed to the maximum extent allowable under law in
72 49 the budget year divided by the school district's basic
72 50 enrollment for the budget year.
73 1 8. "Sales tax capacity per pupil" means the
73 2 estimated amount of revenues that a school district
73 3 receives or would receive if a local sales and
73 4 services tax for school infrastructure is imposed at
73 5 one percent pursuant to section 422E.2, divided by the
73 6 school district's basic enrollment for the budget
73 7 year.
73 8 9. "School infrastructure" means activities
73 9 initiated on or after July 1, 2003, for which a school
73 10 district is authorized to contract indebtedness and
73 11 issue general obligation bonds under section 296.1,
73 12 except those activities related to a teacher's or
73 13 superintendent's home or homes, to stadiums, to the
73 14 improving of a site for an athletic field, or to the
73 15 improving of a site already owned for an athletic
73 16 field. These activities include the construction,
73 17 reconstruction, repair, demolition work, purchasing,
73 18 or remodeling of schoolhouses and bus garages and the
73 19 procurement of schoolhouse construction sites and the
73 20 making of site improvements and those activities for
73 21 which revenues under section 298.3 or 300.2 may be
73 22 spent.
73 23 Sec. 130. NEW SECTION. 292A.2 STATE ASSISTANCE
73 24 FOR EDUCATIONAL INFRASTRUCTURE PROGRAM.
73 25 1. a. The department shall establish and
73 26 administer a state assistance for educational
73 27 infrastructure program to provide financial assistance
73 28 in the form of grants to school districts with school
73 29 infrastructure needs.
73 30 b. The department of education, in consultation
73 31 with the department of management, shall annually
73 32 compute the property tax infrastructure capacity per
73 33 pupil for each school district in the state.
73 34 c. The department of education, in consultation
73 35 with the department of revenue and the legislative
73 36 services agency, shall annually calculate the
73 37 estimated sales and services tax for school
73 38 infrastructure, if imposed at one percent, that is or
73 39 would be received by each school district in the state
73 40 pursuant to section 422E.3. These calculations shall
73 41 be made on a total tax and on a tax per pupil basis
73 42 for each school district.
73 43 d. The department of education, in consultation
73 44 with the department of revenue and the department of
73 45 management, shall annually compute capacity per pupil
73 46 and the local match percentage for each school
73 47 district in the state. The calculations shall be
73 48 released not later than September 1 of each year.
73 49 2. a. A school district's local match requirement
73 50 is equivalent to the total investment of a project
74 1 multiplied by the school district's local match
74 2 percentage. A school district may submit an
74 3 application to the department for financial assistance
74 4 under the program if the school district meets the
74 5 district's local match requirement through one or more
74 6 of the following sources:
74 7 (1) The issuance of bonds pursuant to section
74 8 298.18.
74 9 (2) Local sales and services tax moneys received
74 10 pursuant to section 422E.3.
74 11 (3) A physical plant and equipment levy under
74 12 chapter 298.
74 13 (4) Other moneys locally obtained by the school
74 14 district excluding other state or federal grant
74 15 moneys.
74 16 b. If the project is in collaboration with other
74 17 public or private entities, the school district shall
74 18 be eligible to apply for only the school district's
74 19 portion of the project. As such, state or federal
74 20 grants received by the other entities cannot be used
74 21 toward the local match requirement under paragraph
74 22 "a", subparagraph (4).
74 23 c. A school district may submit an application for
74 24 a project which includes activities at more than one
74 25 attendance center. However, if the activities relate
74 26 to new construction, the project shall only relate to
74 27 one attendance center.
74 28 d. A school district may submit an application for
74 29 conditional approval to the department for financial
74 30 assistance under the program if the school district
74 31 submits a plan for securing the school district's
74 32 local match requirement under paragraph "a". If a
74 33 school district does not meet the local match
74 34 requirement of paragraph "a" within nine months of
74 35 receiving conditional approval from the department,
74 36 the application for financial assistance shall be
74 37 denied by the department and the financial assistance
74 38 shall be carried forward to be made available under
74 39 the allocation provided under subsection 5, paragraph
74 40 "d", for the next available grant cycle.
74 41 e. For the fiscal year beginning July 1, 2003, and
74 42 every fiscal year thereafter, applications shall be
74 43 submitted to the department by October 15 of each
74 44 year.
74 45 f. For the fiscal year beginning July 1, 2003, and
74 46 every fiscal year thereafter, the department shall
74 47 notify all approved applicants by December 15 of each
74 48 year regarding the approval of the application.
74 49 g. An applicant which is not successful in
74 50 obtaining financial assistance under the program may
75 1 reapply for financial assistance in succeeding years.
75 2 3. The application shall include, but shall not be
75 3 limited to, the following information:
75 4 a. The total capital investment of the project.
75 5 b. The amount and percentage of moneys which the
75 6 school district will be providing for the project.
75 7 c. The infrastructure needs of the school
75 8 district, especially the fire and health safety needs
75 9 of the school district, and including the extent to
75 10 which the project would allow the school district to
75 11 meet the infrastructure needs of the school district
75 12 on a long=term basis.
75 13 d. The financial assistance needed by the school
75 14 district based upon the capacity per pupil.
75 15 e. Any previous efforts by the school district to
75 16 secure infrastructure funding from federal, state, or
75 17 local resources, including any funding received for
75 18 any project under the school infrastructure program
75 19 provided in chapter 292. The previous efforts shall
75 20 be evaluated on a case=by=case basis.
75 21 f. Evidence that the school district meets or will
75 22 meet the local match requirement in subsection 2,
75 23 paragraph "a".
75 24 g. The nature of the proposed project and its
75 25 relationship to improving educational opportunities
75 26 for the students.
75 27 h. Evidence that the school district has
75 28 reorganized on or after July 1, 2002, or that the
75 29 school district has initiated a resolution to
75 30 reorganize by July 1, 2005, or entered into an
75 31 innovative collaboration with another school district
75 32 or school districts.
75 33 i. Evidence that the school district receives
75 34 sales and services tax for school infrastructure
75 35 funding under section 422E.3.
75 36 4. A school district with less than two hundred
75 37 fifty actual enrollment or less than one hundred
75 38 actual enrollment in the high school that submits an
75 39 application for assistance for new construction or for
75 40 payments for bonds issued for new construction shall
75 41 include on the application, in addition to that in
75 42 subsection 3, all of the following:
75 43 a. Enrollment trends in the grades that will be
75 44 served at the new construction site.
75 45 b. The infeasibility of remodeling,
75 46 reconstructing, or repairing existing buildings.
75 47 c. The fire and health safety needs of the school
75 48 district.
75 49 d. The distance, convenience, cost of
75 50 transportation, and accessibility of the new
76 1 construction site to the students to be served at the
76 2 new construction site.
76 3 e. Availability of alternative, less costly, or
76 4 more effective means of serving the needs of the
76 5 students.
76 6 f. The financial condition of the district,
76 7 including the effect of the decline of the budget
76 8 guarantee and unspent balance.
76 9 g. Broad and long=term ability of the district to
76 10 support the facility and the quality of the academic
76 11 program.
76 12 h. Cooperation with other educational entities
76 13 including other school districts, area education
76 14 agencies, postsecondary institutions, and local
76 15 communities.
76 16 5. A school district shall not receive more than
76 17 one grant under the program. The financial assistance
76 18 shall be in the form of grants and shall be allocated
76 19 in the following manner:
76 20 a. Twenty=five percent of the financial assistance
76 21 each year shall be awarded to school districts with an
76 22 enrollment of one thousand one hundred ninety=nine
76 23 students or less.
76 24 b. Twenty=five percent of the financial assistance
76 25 each year shall be awarded to school districts with an
76 26 enrollment of more than one thousand one hundred
76 27 ninety=nine students but not more than four thousand
76 28 seven hundred fifty students.
76 29 c. Twenty=five percent of the financial assistance
76 30 each year shall be awarded to school districts with an
76 31 enrollment of more than four thousand seven hundred
76 32 fifty students.
76 33 d. Twenty=five percent of the financial assistance
76 34 each year, any financial assistance not awarded under
76 35 paragraphs "a" through "c", and financial assistance
76 36 not awarded in previous fiscal years shall be awarded
76 37 to school districts with any size enrollment.
76 38 6. A district shall receive the lesser of one
76 39 million dollars of financial assistance under the
76 40 program, or the total capital investment of the
76 41 project minus the local match requirement. If the
76 42 amount of grants awarded in a fiscal year is less than
76 43 the maximum amount provided for grants for that fiscal
76 44 year, the amount of the difference shall be carried
76 45 forward to subsequent fiscal years for purposes of
76 46 providing grants under the program and the maximum
76 47 amount of grants for each fiscal year shall be
76 48 adjusted accordingly.
76 49 7. The school budget review committee shall review
76 50 all applications for financial assistance under the
77 1 program and make recommendations regarding the
77 2 applications to the department. The department shall
77 3 make the final determination on grant awards. The
77 4 school budget review committee shall base the
77 5 recommendations on the criteria established pursuant
77 6 to subsections 3 and 8 and subsection 4, if
77 7 applicable.
77 8 8. The department shall form a task force to
77 9 review applications for financial assistance and
77 10 provide recommendations to the school budget review
77 11 committee. The task force shall include, at a
77 12 minimum, representatives from the kindergarten through
77 13 grade twelve education community, the state fire
77 14 marshal, and individuals knowledgeable in school
77 15 infrastructure and construction issues. The
77 16 department, in consultation with the task force, shall
77 17 establish the parameters and the details of the
77 18 criteria for awarding grants based on the information
77 19 listed in subsection 3, including greater priority to
77 20 the following:
77 21 a. A school district with a lower capacity per
77 22 pupil.
77 23 b. A school district whose plans address specific
77 24 occupant safety issues.
77 25 c. A school district reorganizing or collaborating
77 26 as described in subsection 3, paragraph "h".
77 27 d. A school district for which a sales and
77 28 services tax for school infrastructure has not been
77 29 imposed pursuant to section 422E.2 or a school
77 30 district receiving minimal revenues under section
77 31 422E.3 when the total enrollment of the school
77 32 district is considered.
77 33 9. An applicant receiving financial assistance
77 34 under the program shall submit a progress report to
77 35 the department as requested by the department which
77 36 shall include a description of the activities under
77 37 the project, the status of the implementation of the
77 38 project, and any other information required by the
77 39 department.
77 40 10. A school district located in whole or in part
77 41 in a county which has imposed the maximum rate of
77 42 sales and services tax for school infrastructure
77 43 pursuant to section 422E.2 and has sales and services
77 44 tax for school infrastructure revenue of more than the
77 45 statewide average of sales tax capacity per pupil, as
77 46 defined in section 292.1, subsection 8, shall not be
77 47 eligible for financial assistance under the program.
77 48 For purposes of this subsection, an individual school
77 49 district's sales tax capacity per pupil is the
77 50 estimated total sales and services tax for
78 1 infrastructure revenue to be actually received by the
78 2 school district divided by the school district's
78 3 enrollment as specified in section 292.1, subsection
78 4 8.
78 5 Sec. 131. NEW SECTION. 292A.3 STATE ASSISTANCE
78 6 FOR EDUCATIONAL INFRASTRUCTURE FUND.
78 7 A state assistance for educational infrastructure
78 8 fund is created as a separate and distinct fund in the
78 9 state treasury under the control of the department.
78 10 Moneys in the fund include revenues credited to the
78 11 fund pursuant to this chapter, appropriations made to
78 12 the fund, and other moneys deposited into the fund.
78 13 Any amounts disbursed from the fund shall be utilized
78 14 for school infrastructure purposes as provided in this
78 15 chapter.
78 16 Sec. 132. NEW SECTION. 292A.4 RULES.
78 17 The department shall adopt rules, pursuant to
78 18 chapter 17A, necessary for administering the state
78 19 assistance for educational infrastructure program and
78 20 fund.
78 21 DIVISION XXIII
78 22 EFFECTIVE DATE
78 23 Sec. 133. EFFECTIVE DATE. Unless otherwise
78 24 provided in this Act, this Act takes effect July 1,
78 25 2003.>
78 26 # . Title page, by striking lines 1 and 2 and
78 27 inserting the following: <An Act concerning
78 28 regulatory, taxation, and statutory requirements
78 29 affecting individuals and business relating to
78 30 taxation of property, income and utilities, liability
78 31 reform, workers' compensation, financial services,
78 32 unemployment compensation employer surcharges,
78 33 economic development, and school infrastructure
78 34 assistance, and including effective date,
78 35 applicability, and retroactive applicability
78 36 provisions.>
78 37 #3. By renumbering as necessary.
78 38 HF 692.S
78 39 sc/cc/26
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