Senate Amendment 3281
PAG LIN
1 1 Amend Senate File 416 as follows:
1 2 #1. Page 1, by striking lines 1 through 13, and
1 3 inserting the following:
1 4 <DIVISION I
1 5 EDUCATION FUNDING AND PROPERTY TAXATION
1 6 Section 1. Section 257.1, subsection 2, unnumbered
1 7 paragraph 2, Code 2005, is amended to read as follows:
1 8 For the budget year commencing July 1, 1999 2005,
1 9 and for each succeeding budget year, the regular
1 10 program foundation base per pupil is eighty=seven and
1 11 five=tenths one hundred percent of the regular program
1 12 state cost per pupil. For the budget year commencing
1 13 July 1, 1991 2005, and for each succeeding budget
1 14 year, the special education support services
1 15 foundation base is seventy=nine one hundred percent of
1 16 the special education support services state cost per
1 17 pupil. The combined foundation base is the sum of the
1 18 regular program foundation base and the special
1 19 education support services foundation base.
1 20 Sec. . Section 257.3, subsection 1, unnumbered
1 21 paragraph 1, Code 2005, is amended to read as follows:
1 22 Except as provided in subsections 1A, 2, and 3, a
1 23 school district shall cause to be levied each year,
1 24 for the school general fund, a foundation property tax
1 25 equal to five eight dollars and forty eighty=six cents
1 26 per thousand dollars of assessed valuation on all
1 27 taxable property in the district. The county auditor
1 28 shall spread the foundation levy over all taxable
1 29 property in the district.
1 30 Sec. . Section 257.3, Code 2005, is amended by
1 31 adding the following new subsection:
1 32 NEW SUBSECTION. 1A. For the school budget year
1 33 beginning July 1, 2005, and succeeding budget years,
1 34 there shall be a credit on all taxable property of ten
1 35 cents per thousand dollars of assessed valuation
1 36 applicable against the foundation property tax levy
1 37 rate specified in subsection 1 or 2, as applicable.
1 38 Sec. . Section 257.3, subsection 2, paragraphs
1 39 a and b, Code 2005, are amended to read as follows:
1 40 a. Notwithstanding subsection 1, a reorganized
1 41 school district shall cause a foundation property tax
1 42 of four seven dollars and forty eighty=six cents per
1 43 thousand dollars of assessed valuation to be levied on
1 44 all taxable property which, in the year preceding a
1 45 reorganization, was within a school district affected
1 46 by the reorganization as defined in section 275.1, or
1 47 in the year preceding a dissolution was a part of a
1 48 school district that dissolved if the dissolution
1 49 proposal has been approved by the director of the
1 50 department of education pursuant to section 275.55.
2 1 b. In succeeding school years, the foundation
2 2 property tax levy on that portion shall be increased
2 3 to the rate of four eight dollars and ninety thirty=
2 4 six cents per thousand dollars of assessed valuation
2 5 the first succeeding year, five eight dollars and
2 6 fifteen sixty=one cents per thousand dollars of
2 7 assessed valuation the second succeeding year, and
2 8 five eight dollars and forty eighty=six cents per
2 9 thousand dollars of assessed valuation the third
2 10 succeeding year and each year thereafter.
2 11 Sec. . Section 257.16, subsection 1, Code 2005,
2 12 is amended to read as follows:
2 13 1. There is appropriated each year from the
2 14 general fund of the state an amount necessary to pay
2 15 the foundation aid, supplementary aid pursuant to
2 16 subsection 5 of this section, and supplementary aid
2 17 under section 257.4, subsection 2.
2 18 Sec. . Section 257.16, Code 2005, is amended by
2 19 adding the following new subsection:
2 20 NEW SUBSECTION. 5. a. For the school budget year
2 21 beginning July 1, 2005, the department of management
2 22 shall calculate for each district the difference
2 23 between the sum of the revenues generated by the
2 24 foundation property tax and the additional property
2 25 tax in the district calculated at the rates applicable
2 26 for the budget year beginning July 1, 2005, and the
2 27 revenues that would have been generated by the
2 28 foundation property tax and the additional property
2 29 tax in that district at the rates applicable for the
2 30 budget year beginning July 1, 2004. If the property
2 31 tax revenues for a district calculated at the rates
2 32 applicable for the budget year beginning July 1, 2005,
2 33 exceed the property tax revenues for that district
2 34 which would have been generated calculated at the
2 35 rates applicable for the budget year beginning July 1,
2 36 2004, the department of management shall reduce the
2 37 revenues raised by the foundation property tax and the
2 38 additional property tax levy in that district by that
2 39 difference and the department of education shall pay
2 40 property tax adjustment aid to the district equal to
2 41 that difference from moneys appropriated for property
2 42 tax adjustment aid.
2 43 b. For the budget year beginning July 1, 2006, and
2 44 succeeding budget years, the department of education
2 45 shall pay property tax adjustment aid to a school
2 46 district equal to the amount paid to the district for
2 47 the base year. The department of management shall
2 48 adjust the rate of the foundation property tax and the
2 49 additional property tax accordingly and notify the
2 50 department of education of the amount of aid to be
3 1 paid to each district from moneys appropriated for
3 2 property tax adjustment aid.
3 3 c. There is appropriated from the general fund of
3 4 the state to the department of education, for each
3 5 fiscal year, an amount necessary to pay property tax
3 6 adjustment aid to school districts under this section.
3 7 Property tax adjustment aid shall be paid to school
3 8 districts in the manner provided in this section.
3 9 d. For purposes of this subsection, "the rates
3 10 applicable" means the rates specified in section
3 11 257.3, subsection 1 or 2, and section 257.4.>
3 12 #2. By striking page 1, line 14 through page 5,
3 13 line 1 and inserting the following:
3 14 <Sec. . NEW SECTION. 260C.26 WORKFORCE
3 15 TRAINING, ECONOMIC DEVELOPMENT, AND TUITION
3 16 REPLACEMENT == APPROPRIATION == SUPPLEMENTAL FUND
3 17 ESTABLISHED.
3 18 1. A workforce training, economic development, and
3 19 tuition replacement supplemental fund is created for
3 20 each community college. Moneys shall be deposited and
3 21 expended from the fund as provided under this section.
3 22 2. For the fiscal year beginning July 1, 2006, and
3 23 succeeding fiscal years, there is appropriated
3 24 annually from the general fund of the state to the
3 25 department of education ten million dollars, or so
3 26 much thereof as is necessary, for the purposes
3 27 specified in subsection 3. The department shall
3 28 allocate the moneys appropriated by this section to
3 29 the community college workforce training, economic
3 30 development, and tuition replacement supplemental
3 31 funds utilizing the same distribution formula used for
3 32 the allocation of state general aid to the community
3 33 colleges. For the fiscal year beginning July 1, 2007,
3 34 and succeeding fiscal years, the amount appropriated
3 35 by this section shall annually increase in an amount
3 36 equal to the state percent of growth applicable for
3 37 the fiscal year multiplied by the amount appropriated
3 38 by this section for the previous fiscal year.
3 39 3. Moneys deposited in the fund are at the>.
3 40 #3. Page 7, by striking lines 1 through 9.
3 41 #4. Page 7, by inserting before line 10 the
3 42 following:
3 43 <Sec. . Section 384.4, Code 2005, is amended by
3 44 adding the following new subsection:
3 45 NEW SUBSECTION. 5. Principal and interest on
3 46 obligations issued prior to July 1, 2005, for urban
3 47 renewal project activities under chapter 403, but only
3 48 to the extent necessary to make up any shortfall in
3 49 the revenues allocated to the special fund of the city
3 50 pursuant to section 403.19, subsection 2, which
4 1 results from the increase in the regular program
4 2 foundation base pursuant to section 257.1, subsection
4 3 2, as amended by this Act. Notwithstanding section
4 4 384.18, a municipality may, before June 1, 2005, amend
4 5 its budget to provide for certification of the portion
4 6 of the debt service levy allowed under this
4 7 subsection. This subsection is repealed effective
4 8 January 1, 2025.
4 9 Sec. . Section 425A.3, subsection 1, Code 2005,
4 10 is amended to read as follows:
4 11 1. The family farm tax credit fund shall be
4 12 apportioned each year in the manner provided in this
4 13 chapter so as to give a credit against the tax on each
4 14 eligible tract of agricultural land within the several
4 15 school districts of the state in which the levy for
4 16 the general school fund exceeds five eight dollars and
4 17 forty seventy=six cents per thousand dollars of
4 18 assessed value. The amount of the credit on each
4 19 eligible tract of agricultural land shall be the
4 20 amount the tax levied for the general school fund
4 21 exceeds the amount of tax which would be levied on
4 22 each eligible tract of agricultural land were the levy
4 23 for the general school fund five eight dollars and
4 24 forty seventy=six cents per thousand dollars of
4 25 assessed value for the previous year. However, in the
4 26 case of a deficiency in the family farm tax credit
4 27 fund to pay the credits in full, the credit on each
4 28 eligible tract of agricultural land in the state shall
4 29 be proportionate and applied as provided in this
4 30 chapter.
4 31 Sec. . Section 425A.5, Code 2005, is amended to
4 32 read as follows:
4 33 425A.5 COMPUTATION BY COUNTY AUDITOR.
4 34 The family farm tax credit allowed each year shall
4 35 be computed as follows: On or before April 1, the
4 36 county auditor shall list by school districts all
4 37 tracts of agricultural land which are entitled to
4 38 credit, the taxable value for the previous year, the
4 39 budget from each school district for the previous
4 40 year, and the tax rate determined for the general fund
4 41 of the school district in the manner prescribed in
4 42 section 444.3 for the previous year, and if the tax
4 43 rate is in excess of five eight dollars and forty
4 44 seventy=six cents per thousand dollars of assessed
4 45 value, the auditor shall multiply the tax levy which
4 46 is in excess of five eight dollars and forty seventy=
4 47 six cents per thousand dollars of assessed value by
4 48 the total taxable value of the agricultural land
4 49 entitled to credit in the school district, and on or
4 50 before April 1, certify the total amount of credit and
5 1 the total number of acres entitled to the credit to
5 2 the department of revenue.
5 3 Sec. . Section 426.3, Code 2005, is amended to
5 4 read as follows:
5 5 426.3 WHERE CREDIT GIVEN.
5 6 The agricultural land credit fund shall be
5 7 apportioned each year in the manner hereinafter
5 8 provided so as to give a credit against the tax on
5 9 each tract of agricultural lands within the several
5 10 school districts of the state in which the levy for
5 11 the general school fund exceeds five eight dollars and
5 12 forty seventy=six cents per thousand dollars of
5 13 assessed value; the amount of such credit on each
5 14 tract of such lands shall be the amount the tax levied
5 15 for the general school fund exceeds the amount of tax
5 16 which would be levied on said tract of such lands were
5 17 the levy for the general school fund five eight
5 18 dollars and forty seventy=six cents per thousand
5 19 dollars of assessed value for the previous year,
5 20 except in the case of a deficiency in the agricultural
5 21 land credit fund to pay said credits in full, in which
5 22 case the credit on each eligible tract of such lands
5 23 in the state shall be proportionate and shall be
5 24 applied as hereinafter provided.
5 25 Sec. . Section 426.6, unnumbered paragraph 1,
5 26 Code 2005, is amended to read as follows:
5 27 The agricultural land tax credit allowed each year
5 28 shall be computed as follows: On or before April 1,
5 29 the county auditor shall list by school districts all
5 30 tracts of agricultural lands which are entitled to
5 31 credit, together with the taxable value for the
5 32 previous year, together with the budget from each
5 33 school district for the previous year, and the tax
5 34 rate determined for the general fund of the district
5 35 in the manner prescribed in section 444.3 for the
5 36 previous year, and if such tax rate is in excess of
5 37 five eight dollars and forty seventy=six cents per
5 38 thousand dollars of assessed value, the auditor shall
5 39 multiply the tax levy which is in excess of five eight
5 40 dollars and forty seventy=six cents per thousand
5 41 dollars of assessed value by the total taxable value
5 42 of the agricultural lands entitled to credit in the
5 43 district, and on or before April 1, certify the amount
5 44 to the department of revenue.>
5 45 #5. By striking page 7, line 25, through page 8,
5 46 line 3, and inserting the following:
5 47 <1. The sections of this division of this Act
5 48 increasing the regular program foundation base and the
5 49 special education support services foundation base,
5 50 increasing the foundation property tax, and providing
6 1 for property tax adjustment aid pursuant to section
6 2 257.16, subsection 5, being deemed of immediate
6 3 importance, take effect upon enactment and apply to
6 4 school budget years beginning on or after July 1,
6 5 2005.>
6 6 #6. Page 8, by striking lines 4 through 7 and
6 7 inserting the following:
6 8 <2. The section of this division of this Act
6 9 relating to the appropriation to and creation of a
6 10 workforce training, economic development, and tuition
6 11 replacement supplemental fund in each community
6 12 college takes effect January 1, 2006, and is
6 13 applicable for the fiscal year beginning July 1,
6 14 2006.>
6 15 #7. Page 8, line 8, by inserting after the word
6 16 <sections> the following: <of this division>.
6 17 #8. Page 8, by inserting after line 10, the
6 18 following:
6 19 < . The sections of this division of this Act
6 20 amending provisions relating to the family farm tax
6 21 credit under chapter 425A and the agricultural land
6 22 tax credit under chapter 426 take effect January 1,
6 23 2007, for taxes due and payable in fiscal years
6 24 beginning on or after July 1, 2007.>
6 25 #9. Page 8, by inserting after line 10 the
6 26 following:
6 27 <DIVISION II
6 28 FOUNDATION PROPERTY TAX == URBAN RENEWAL
6 29 Sec. . Section 403.19, subsection 2, Code 2005,
6 30 is amended to read as follows:
6 31 2. That portion of the taxes each year in excess
6 32 of such amount shall be allocated to and when
6 33 collected be paid into a special fund of the
6 34 municipality to pay the principal of and interest on
6 35 loans, moneys advanced to, or indebtedness, whether
6 36 funded, refunded, assumed, or otherwise, including
6 37 bonds issued under the authority of section 403.9,
6 38 subsection 1, incurred by the municipality to finance
6 39 or refinance, in whole or in part, an urban renewal
6 40 project within the area, and to provide assistance for
6 41 low and moderate income family housing as provided in
6 42 section 403.22, except that. However, taxes for the
6 43 regular and voter=approved physical plant and
6 44 equipment levy of a school district imposed pursuant
6 45 to section 298.2, and taxes for the payment of bonds
6 46 and interest of each taxing district must, and the
6 47 foundation property tax imposed pursuant to section
6 48 257.3, subsection 1, but only as provided in
6 49 subsection 8, shall be collected against all taxable
6 50 property within the taxing district without limitation
7 1 by the provisions of this subsection. However In
7 2 addition, all or a portion of the taxes for the
7 3 physical plant and equipment levy shall be paid by the
7 4 school district to the municipality if the auditor
7 5 certifies to the school district by July 1 the amount
7 6 of such levy that is necessary to pay the principal
7 7 and interest on bonds issued by the municipality to
7 8 finance an urban renewal project, which bonds were
7 9 issued before July 1, 2001. Indebtedness incurred to
7 10 refund bonds issued prior to July 1, 2001, shall not
7 11 be included in the certification. Such school
7 12 district shall pay over the amount certified by
7 13 November 1 and May 1 of the fiscal year following
7 14 certification to the school district. Unless and
7 15 until the total assessed valuation of the taxable
7 16 property in an urban renewal area exceeds the total
7 17 assessed value of the taxable property in such area as
7 18 shown by the last equalized assessment roll referred
7 19 to in subsection 1, all of the taxes levied and
7 20 collected upon the taxable property in the urban
7 21 renewal area shall be paid into the funds for the
7 22 respective taxing districts as taxes by or for the
7 23 taxing districts in the same manner as all other
7 24 property taxes. When such loans, advances,
7 25 indebtedness, and bonds, if any, and interest thereon,
7 26 have been paid, all moneys thereafter received from
7 27 taxes upon the taxable property in such urban renewal
7 28 area shall be paid into the funds for the respective
7 29 taxing districts in the same manner as taxes on all
7 30 other property.
7 31 Sec. . Section 403.19, Code 2005, is amended by
7 32 adding the following new subsection:
7 33 NEW SUBSECTION. 8. a. For urban renewal plans
7 34 adopted on or after the effective date of this Act,
7 35 taxes collected under subsection 2 shall not include
7 36 the foundation property tax imposed pursuant to
7 37 section 257.3, subsection 1.
7 38 b. For urban renewal plans adopted before the
7 39 effective date of this Act, taxes collected under
7 40 subsection 2 shall not include the foundation property
7 41 tax imposed pursuant to section 257.3, subsection 1,
7 42 for fiscal years beginning on or after July 1, 2025.
7 43 c. On or before January 1, 2006, a municipality
7 44 shall report to the department of management the
7 45 status of any loans, advances, indebtedness, or bonds
7 46 issued or incurred before the effective date of this
7 47 Act for urban renewal purposes and payable from the
7 48 special fund in section 403.19, subsection 2. The
7 49 report shall include a schedule of payments for such
7 50 loans, advances, indebtedness, or bonds. Based on the
8 1 information in the reports, the governor shall
8 2 recommend to the general assembly legislation
8 3 necessary to address tax increment financing revenue
8 4 shortfalls that may result from exempting the
8 5 foundation property tax levy from collection as tax
8 6 increment financing revenue.
8 7 Sec. . EFFECTIVE DATE. This division of this
8 8 Act, being deemed of immediate importance, takes
8 9 effect upon enactment.
8 10 DIVISION III
8 11 TASK FORCE ON LOCAL ECONOMIC DEVELOPMENT
8 12 Sec. .
8 13 1. On or before August 1, 2005, the department of
8 14 economic development shall initiate and coordinate the
8 15 establishment of a local economic development task
8 16 force. The chairperson of the task force shall be the
8 17 director of the department of economic development or
8 18 the director's designee. Participants on the task
8 19 force shall be appointed by the director and shall
8 20 include representatives of the Iowa state association
8 21 of counties, representatives of the Iowa league of
8 22 cities, and other participants deemed appropriate by
8 23 the director. The department of economic development
8 24 shall provide staffing assistance to the task force.
8 25 2. The task force shall identify and study the
8 26 economic development programs currently available to
8 27 cities and counties. Such programs shall include
8 28 those operated by the state and those implemented by
8 29 cities and counties pursuant to statutory authority.
8 30 The task force shall analyze the effectiveness of
8 31 these programs.
8 32 3. On or before January 15, 2006, and on or before
8 33 January 15, 2007, the task force shall report its
8 34 findings to the general assembly and to the office of
8 35 the governor.>
8 36 #10. Title page, by striking lines 1 through 7 and
8 37 inserting the following: <An Act related to property
8 38 taxation and related aspects of education funding by
8 39 increasing the state regular program and special
8 40 education support services foundation base per pupil,
8 41 by increasing the foundation property tax, by
8 42 establishing a workforce training, economic
8 43 development, and tuition replacement supplemental
8 44 fund, making an appropriation, increasing the state
8 45 cigarette tax, adjusting the calculations for the
8 46 family farm and agricultural land tax credits,
8 47 modifying provisions relating to urban renewal
8 48 projects, establishing a task force to develop
8 49 recommendations regarding economic development tools
8 50 for municipalities, and including effective and
9 1 applicability date provisions.>
9 2
9 3
9 4
9 5 BOB BRUNKHORST
9 6 SF 416.702 81
9 7 rn/gg/4938
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