House File 2353
HOUSE FILE
BY STEVENS
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the local option sales and services tax for
2 school infrastructure purposes and including effective and
3 retroactive applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6023YH 80
6 mg/sh/8
PAG LIN
1 1 Section 1. Section 76.4, Code 2003, is amended to read as
1 2 follows:
1 3 76.4 PERMISSIVE APPLICATION OF FUNDS.
1 4 Whenever the governing authority of such political
1 5 subdivision shall have on hand funds derived from any other
1 6 source than taxation which may be appropriated to the payment
1 7 either of interest or principal, or both principal and
1 8 interest of such bonds, such funds may be so appropriated and
1 9 used and the levy for the payment of the bonds correspondingly
1 10 reduced. This section shall not restrict the authority of a
1 11 political subdivision to apply sales and services tax receipts
1 12 collected pursuant to chapter 422B for such purpose.
1 13 Notwithstanding section 422E.1, subsection 3, a school
1 14 district may apply local sales and services tax receipts
1 15 collected or anticipated pursuant to chapter 422E for the
1 16 purposes of this section.
1 17 Sec. 2. Section 422B.12, Code Supplement 2003, is amended
1 18 by adding the following new subsection:
1 19 NEW SUBSECTION. 1A. A school district shall not enter
1 20 into a chapter 28E agreement with one or more cities or
1 21 counties to receive revenues from a local option sales and
1 22 services tax imposed pursuant to this chapter unless the
1 23 majority of the area of the school district is located in a
1 24 county that has imposed a local option sales and services tax
1 25 for school infrastructure purposes pursuant to chapter 422E.
1 26 Sec. 3. Section 422E.1, subsection 2, Code Supplement
1 27 2003, is amended to read as follows:
1 28 2. The maximum rate of tax shall be one percent. The tax
1 29 shall be imposed without regard to any other local sales and
1 30 services tax authorized in chapter 422B, and is repealed at
1 31 the expiration of a period of ten years of imposition or a
1 32 shorter period as provided in the ballot proposition or as
1 33 otherwise provided in this chapter. However, all local option
1 34 sales and services taxes for school infrastructure purposes
1 35 are repealed December 31, 2022.
2 1 Sec. 4. Section 422E.1, subsection 3, Code Supplement
2 2 2003, is amended to read as follows:
2 3 3. Local sales and services tax moneys received or
2 4 anticipated by a county for school infrastructure purposes
2 5 pursuant to this chapter shall be utilized for school
2 6 infrastructure needs or property tax relief. For purposes of
2 7 this chapter, "school infrastructure" means those activities
2 8 for which a school district is authorized to contract
2 9 indebtedness and issue general obligation bonds under section
2 10 296.1, except those activities related to a teacher's or
2 11 superintendent's home or homes. These activities include the
2 12 construction, reconstruction, repair, demolition work,
2 13 purchasing, or remodeling of schoolhouses, stadiums, gyms,
2 14 fieldhouses, and bus garages and the procurement of
2 15 schoolhouse construction sites and the making of site
2 16 improvements and those activities for which revenues under
2 17 section 298.3 or 300.2 may be spent. Additionally, "school
2 18 infrastructure" includes the payment or retirement of
2 19 outstanding bonds previously issued for school infrastructure
2 20 purposes as defined in this subsection, and the payment or
2 21 retirement of bonds issued under section 422E.4.
2 22 Sec. 5. Section 422E.2, subsection 4, paragraph a, Code
2 23 Supplement 2003, is amended to read as follows:
2 24 a. Each school district located within the county may
2 25 submit a revenue purpose statement to the county commissioner
2 26 of elections no later than sixty days prior to the election
2 27 indicating the specific purpose or purposes for which the
2 28 local sales and services tax for school infrastructure revenue
2 29 and supplemental school infrastructure amount revenue will be
2 30 expended. The revenues received pursuant to this chapter
2 31 shall be expended for the purposes indicated in the revenue
2 32 purpose statement. The revenue purpose statement may include
2 33 information regarding the school district's use of the
2 34 revenues to provide for property tax relief or debt reduction.
2 35 A copy of the revenue purpose statement shall be made
3 1 available by the school district for public inspection in
3 2 accordance with chapter 22, and a copy shall be posted by the
3 3 county commissioner of elections at the appropriate polling
3 4 places of each school district during the hours that the polls
3 5 are open, and shall be published by the county commissioner of
3 6 elections in a newspaper of general circulation in the school
3 7 district no sooner than twenty days and no later than ten days
3 8 prior to the election. The state commissioner of elections
3 9 shall establish by rule the form for the revenue purpose
3 10 statement which form shall be uniform throughout the state.
3 11 Sec. 6. Section 422E.2, subsection 4, paragraph c, Code
3 12 Supplement 2003, is amended to read as follows:
3 13 c. Counties holding an election on the local sales and
3 14 services tax for school infrastructure purposes on or after
3 15 April 1, 2003, but before July August 1, 2003, which approve
3 16 the imposition of the tax at the election shall expend the
3 17 revenues for any authorized infrastructure purpose of the
3 18 school district.
3 19 Sec. 7. Section 422E.2, subsection 5, paragraph a, Code
3 20 Supplement 2003, is amended to read as follows:
3 21 a. The tax may be repealed or the rate increased, but not
3 22 above one percent, or decreased, or the use of the revenues
3 23 changed after an election at which a majority of those voting
3 24 on the question of repeal, rate change, or change in use
3 25 favored the repeal, rate change, or change in use. The
3 26 election at which the question of repeal, rate change, or
3 27 change in use is offered shall be called and held in the same
3 28 manner and under the same conditions as provided in this
3 29 section for the election on the imposition of the tax.
3 30 However, an election on the change in use shall only be held
3 31 in the school district where the change in use is proposed to
3 32 occur and shall be held on the date specified by the board of
3 33 directors of the school district. However, an election on the
3 34 repeal or the decrease in the rate shall not be held if
3 35 obligations are outstanding which are payable as provided in
4 1 section 422E.4, unless funds sufficient to pay the principal,
4 2 interest, and premium, if any, on the outstanding obligations
4 3 at and prior to maturity have been properly set aside and
4 4 pledged for that purpose. The election on the repeal, rate
4 5 change, or change in use may be held at any time but not
4 6 sooner than sixty days following publication of the ballot
4 7 proposition. However, the tax shall not be repealed before it
4 8 has been in effect for one year.
4 9 Sec. 8. Section 422E.3, subsection 1, Code Supplement
4 10 2003, is amended to read as follows:
4 11 1. If a majority of those voting on the question of
4 12 imposition of a local sales and services tax for school
4 13 infrastructure purposes favors imposition of the tax, the tax
4 14 shall be imposed by the county board of supervisors within the
4 15 county pursuant to section 422E.2, at the rate specified for a
4 16 ten=year duration on the gross receipts taxed by the state
4 17 under chapter 422, division IV, until the date of repeal
4 18 specified on the ballot.
4 19 Sec. 9. Section 422E.3A, subsection 3, paragraph b,
4 20 subparagraph (3), Code Supplement 2003, is amended to read as
4 21 follows:
4 22 (3) "Statewide tax revenues per student" means five
4 23 hundred seventy=five dollars per student. The general
4 24 assembly shall review may adjust this amount annually to
4 25 determine better reflect its appropriateness. However, any
4 26 adjustment shall not result in this amount being reduced below
4 27 that in effect for the previous fiscal year.
4 28 Sec. 10. Section 422E.3A, subsection 6, unnumbered
4 29 paragraph 1, Code Supplement 2003, is amended to read as
4 30 follows:
4 31 A school district with less than two hundred fifty actual
4 32 enrollment or less than one hundred actual enrollment in the
4 33 high school shall not expend the supplemental school
4 34 infrastructure amount received for new construction or for
4 35 payments for bonds issued for new construction against the
5 1 supplemental school infrastructure amount without prior
5 2 application to the department of education and receipt of a
5 3 certificate of need pursuant to this subsection. However, a
5 4 certificate of need is not required for the payment of
5 5 outstanding bonds issued for new construction pursuant to
5 6 section 296.1, before April 1, 2003. A certificate of need is
5 7 also not required for repairing schoolhouses or buildings,
5 8 equipment, technology, or transportation equipment for
5 9 transporting students as provided in section 298.3, or for
5 10 construction necessary for compliance with the federal
5 11 Americans With Disabilities Act pursuant to 42 U.S.C. }
5 12 12101== 12117. In determining whether a certificate of need
5 13 shall be issued or denied, the department shall consider all
5 14 of the following:
5 15 Sec. 11. Section 422E.4, unnumbered paragraph 1, Code
5 16 Supplement 2003, is amended to read as follows:
5 17 The board of directors of a school district shall be
5 18 authorized to issue negotiable, interest=bearing school bonds,
5 19 without election, and utilize tax receipts derived from the
5 20 sales and services tax for school infrastructure purposes and
5 21 the supplemental school infrastructure amount distributed
5 22 pursuant to section 422E.3A, subsection 2, paragraph "b", for
5 23 principal and interest repayment. Proceeds of the bonds
5 24 issued pursuant to this section shall be utilized solely for
5 25 school infrastructure needs as school infrastructure is
5 26 defined in section 422E.1, subsection 3. Issuance of bonds
5 27 pursuant to this section shall be permitted only in a district
5 28 which has imposed a local sales and services tax for school
5 29 infrastructure purposes pursuant to section 422E.2. The
5 30 provisions of sections 298.22 through 298.24 shall apply
5 31 regarding the form, rate of interest, registration,
5 32 redemption, and recording of bond issues pursuant to this
5 33 section, with the exception that the maximum period during
5 34 which principal on the bonds is payable shall not exceed the
5 35 date of repeal stated on the ballot proposition. Bonds issued
6 1 under this section may be sold at public sale as provided in
6 2 chapter 75 without notice and hearing as provided in section
6 3 73A.l2. Bonds may bear dates, bear interest at rates not
6 4 exceeding that permitted by chapter 74A, mature in one or more
6 5 installments, be in registered form, carry registration and
6 6 conversion privileges, be payable as to principal and interest
6 7 at times and places, be subject to terms of redemption prior
6 8 to maturity with or without premium, and be in one or more
6 9 denominations, all as provided by the resolution of the board
6 10 of directors authorizing their issuance. The resolution may
6 11 also prescribe additional provisions, terms, conditions, and
6 12 covenants which the board of directors deems advisable,
6 13 including provisions for creating and maintaining reserve
6 14 funds, the issuance of additional bonds ranking on a parity
6 15 with such bonds and additional bonds junior and subordinate to
6 16 such bonds, and that such bonds shall rank on a parity with or
6 17 be junior and subordinate to any bonds which may be then
6 18 outstanding. Bonds may be issued to refund outstanding and
6 19 previously issued bonds under this section. Local option
6 20 sales and services tax revenue bonds are a contract between
6 21 the school district and holders, and the resolution
6 22 authorizing the issuance of the bonds and pledging local
6 23 option sales and services tax revenues to the payment of
6 24 principal and interest on the bonds is a part of the contract.
6 25 Bonds issued pursuant to this section shall not constitute
6 26 indebtedness within the meaning of any constitutional or
6 27 statutory debt limitation or restriction, and shall not be
6 28 subject to any other law relating to the authorization,
6 29 issuance, or sale of bonds.
6 30 Sec. 12. EFFECTIVE AND RETROACTIVE DATES. The section of
6 31 this Act amending section 422E.2, subsection 4, paragraph "c",
6 32 being deemed of immediate importance, takes effect upon
6 33 enactment and applies retroactively to May 30, 2003.
6 34 EXPLANATION
6 35 This bill makes amendments to the Code which are related to
7 1 the local option sales and services tax for school
7 2 infrastructure purposes under Code chapter 422E as follows:
7 3 Code sections 76.4 and 422E.1, subsection 3, are amended to
7 4 allow anticipated receipts of the tax to be used for the
7 5 payment of principal and interest on bonds issued by the
7 6 school district for infrastructure purposes or for property
7 7 tax relief.
7 8 Code section 422B.12 is amended to restrict the eligibility
7 9 of school districts to enter into chapter 28E agreements to
7 10 share a city's or county's local option sales and use tax
7 11 receipts to those school districts for which the majority of
7 12 the area of the school district is located in a county in
7 13 which a local option sales and services tax for school
7 14 infrastructure is imposed under Code chapter 422E.
7 15 Code sections 422E.1, subsection 2, and 422E.3, subsection
7 16 1, are amended to eliminate the provision that restricts the
7 17 duration of the tax to 10 years.
7 18 Code section 422E.2, subsection 4, paragraph "a", is
7 19 amended to give the county commissioner of elections the
7 20 responsibility to post the revenue purpose statement at the
7 21 polling places during election day and to publish the
7 22 statement. The form of the revenue purpose statement is to be
7 23 made uniform throughout the state as established by the state
7 24 commissioner of elections.
7 25 Code section 422E.2, subsection 4, paragraph "c", is
7 26 amended to allow school districts to use tax revenues for any
7 27 authorized infrastructure purpose even though a revenue
7 28 purpose statement has not been filed if the election on the
7 29 imposition of the tax is held between April 1, 2003, and
7 30 August 1, 2003. Present law sets the time frame between April
7 31 1, 2003, and July 1, 2003. This amendment is retroactive to
7 32 May 30, 2003.
7 33 Code section 422E.2, subsection 5, paragraph "a", is
7 34 amended to allow the board of directors of the school district
7 35 to set the date of an election on the question of a change in
8 1 the use of tax revenues. The election may be held at any time
8 2 as specified under present law. The Code section is also
8 3 amended to provide that an election for the repeal or rate
8 4 reduction is not to be held if bonds are outstanding for which
8 5 funds sufficient for the payment of these bonds have not been
8 6 set aside and pledged for that purpose.
8 7 Code section 422E.3A, subsection 3, paragraph "b",
8 8 subparagraph (3), is amended to provide that the $575 amount
8 9 established as the statewide tax revenues per student and used
8 10 to determine a school district's guaranteed school
8 11 infrastructure amount may be adjusted by the general assembly,
8 12 but any adjustment shall not result in a reduction in the
8 13 previous fiscal year's amount.
8 14 Code section 422E.3A, subsection 6, is amended to limit the
8 15 requirement of a certificate of need for use of supplemental
8 16 school infrastructure amounts for new construction or payment
8 17 of bonds used for new construction to those school districts
8 18 with actual enrollment of less than 250 or with a high school
8 19 with actual enrollment of less than 100.
8 20 Code section 422E.4 is amended to rewrite the bonding
8 21 authority of the board of directors of a school district so
8 22 that it mirrors, to a large extent, the authority set out for
8 23 city and county revenue bonds under the local option sales and
8 24 services tax imposed under Code chapter 422B.
8 25 LSB 6023YH 80
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