House File 124 HOUSE FILE BY ALONS Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for an inflation factor adjustment to be added 2 to authorized community college levies, and providing an 3 applicability date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1369YH 80 6 rn/cl/14 PAG LIN 1 1 Section 1. NEW SECTION. 260C.30 LEVIES == ANNUAL 1 2 INFLATION FACTOR. 1 3 1. The maximum levy limits specified in sections 260C.17, 1 4 260C.22, and 260C.28 shall be subject to an annual inflation 1 5 factor adjustment. The amount of the adjustment shall be 1 6 calculated as provided in subsection 2 of this section. 1 7 2. a. Notwithstanding section 260C.17, unnumbered 1 8 paragraph 2, or any other provision of law to the contrary, 1 9 for the fiscal year beginning in the 2004 calendar year and 1 10 for each subsequent fiscal year, the maximum levy limits 1 11 specified in sections 260C.17, 260C.22, and 260C.28 shall be 1 12 multiplied by the cumulative adjustment factor for that fiscal 1 13 year. "Cumulative adjustment factor" means the product of the 1 14 annual adjustment factor for the 2003 calendar year and all 1 15 annual adjustment factors for subsequent calendar years. The 1 16 cumulative adjustment factor applies to the fiscal year 1 17 beginning in the calendar year for which the latest annual 1 18 adjustment factor has been determined. 1 19 b. The annual adjustment factor for the 2003 calendar year 1 20 is one hundred percent. For each subsequent calendar year, 1 21 the annual adjustment factor equals the annual inflation 1 22 factor for the calendar year as computed in section 422.4 for 1 23 purposes of the individual income tax. 1 24 Sec. 2. APPLICABILITY DATES. The inflation factor 1 25 adjustment provisions in this Act are applicable to the 1 26 maximum levy limits applicable to levies which have been 1 27 authorized on or before the effective date of this Act, 1 28 including the voter=approved levies pursuant to sections 1 29 260C.22 and 260C.28, and to amounts which shall be certified 1 30 for levy on or after the effective date of this Act. 1 31 EXPLANATION 1 32 This bill provides for the addition of an annual inflation 1 33 factor applicable to the maximum community college levy limits 1 34 specified in Code sections 260C.17, 260C.22, and 260C.28. The 1 35 bill provides that the annual inflation factor shall be 2 1 determined by a formula that multiplies the maximum levy limit 2 2 for the fiscal year beginning in the 2004 calendar year by a 2 3 cumulative adjustment factor for that fiscal year. The bill 2 4 provides that the cumulative adjustment factor refers to the 2 5 product of an annual adjustment factor for the 2003 calendar 2 6 year and all annual adjustment factors for subsequent calendar 2 7 years, and applies to the fiscal year beginning in the 2 8 calendar year for which the latest annual adjustment factor 2 9 has been determined. The bill provides that the annual 2 10 adjustment factor for the 2003 calendar year is 100 percent, 2 11 and that for each subsequent calendar year, the annual 2 12 adjustment factor equals the annual inflation factor for the 2 13 calendar year as computed in Code section 422.4 for purposes 2 14 of the individual income tax. The bill provides that the 2 15 annual inflation factor shall be applied notwithstanding any 2 16 other Code provision to the contrary, and shall be applicable 2 17 to previously authorized levies, including voter=approved 2 18 levies, in existence on the effective date of the bill, as 2 19 well as levies authorized on or after that date. 2 20 LSB 1369YH 80 2 21 rn/cl/14