House File 2546
HOUSE FILE
BY JENKINS, DENNIS, UPMEYER,
ELGIN, HOFFMAN, AND BOGGESS
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for the imposition of a local option sales and
2 services tax for community college general fund purposes.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5874YH 80
5 mg/sh/8
PAG LIN
1 1 Section 1. NEW SECTION. 423F.1 AUTHORIZATION == RATE OF
1 2 TAX == USE OF REVENUES.
1 3 1. A local sales and services tax for community college
1 4 general fund purposes may be imposed by each county making up
1 5 the service area on behalf of a community college as provided
1 6 in this chapter.
1 7 If a local sales and services tax for community college
1 8 general fund purposes is imposed by a county pursuant to this
1 9 chapter, a local excise tax for community college general fund
1 10 purposes at the same rate shall be imposed by the county on
1 11 the purchase price of natural gas, natural gas service,
1 12 electricity, or electric service subject to tax under chapter
1 13 423, subchapter III, and not exempted from tax by any
1 14 provision of chapter 423, subchapter III. The local excise
1 15 tax for community college general fund purposes is applicable
1 16 only to the use of natural gas, natural gas service,
1 17 electricity, or electric service within those incorporated and
1 18 unincorporated areas of the county where it is imposed and,
1 19 except as otherwise provided in this chapter, shall be
1 20 collected and administered in the same manner as the local
1 21 sales and services tax for community college general fund
1 22 purposes. For purposes of this chapter, "local sales and
1 23 services tax for community college general fund purposes"
1 24 shall also include the local excise tax for community college
1 25 general fund purposes.
1 26 2. The maximum rate of tax shall be two=tenths of one
1 27 percent. Rates may be imposed at less than the maximum rate
1 28 but only in multiples of fifty thousandths of one percent.
1 29 The tax shall be imposed without regard to any other local
1 30 sales and services tax authorized in chapter 423B or 423E, and
1 31 is repealed at the expiration of a period of ten years of
1 32 imposition or a shorter period as provided in the ballot
1 33 proposition.
1 34 3. Local sales and services tax moneys received by a
1 35 county for community college general fund purposes pursuant to
2 1 this chapter shall be utilized solely for community college
2 2 general fund needs.
2 3 4. For purposes of this chapter, "service delivery area"
2 4 means the area included within a merged area, as defined in
2 5 section 260C.2, realigned to the closest county border as
2 6 determined by the department of workforce development pursuant
2 7 to section 84B.2.
2 8 Sec. 2. NEW SECTION. 423F.2 IMPOSITION BY COUNTIES.
2 9 1. a. A local sales and services tax shall be imposed by
2 10 each county of a service delivery area only after an election
2 11 at which a majority of those voting in all such counties on
2 12 the question favors imposition. The effective date shall be
2 13 either January 1 or July 1 but not sooner than ninety days
2 14 following the favorable election. A local sales and services
2 15 tax approved by a majority vote shall apply to all
2 16 incorporated and unincorporated areas of those counties.
2 17 b. A local sales and services tax shall be repealed on
2 18 either June 30 or December 31 but not sooner than ninety days
2 19 following the favorable election, if one is held.
2 20 2. a. Upon receipt by the board of directors of the
2 21 community college of a petition requesting imposition of a
2 22 local sales and services tax for community college general
2 23 fund purposes, signed by eligible electors of the whole
2 24 service delivery area equal in number to five percent of the
2 25 persons in the whole service delivery area who voted at the
2 26 last preceding state general election, the board shall, within
2 27 thirty days, direct each county commissioner of elections of
2 28 the counties located in the service delivery area to submit
2 29 the question of imposition of the tax to the registered voters
2 30 of the whole service delivery area.
2 31 b. Alternatively, the question of imposition of a local
2 32 sales and services tax for community college general fund
2 33 purposes may be proposed by motion requesting such submission,
2 34 adopted by the board of directors of the community college.
2 35 Upon adoption of such motion, the board of directors of the
3 1 community college shall notify each board of supervisors of
3 2 the adoption of the motion. Each county board of supervisors
3 3 shall submit the motion to the appropriate county commissioner
3 4 of elections, who shall publish notice of the ballot
3 5 proposition concerning the imposition of the local sales and
3 6 services tax.
3 7 3. Each county commissioner of elections shall submit the
3 8 question of imposition of a local sales and services tax for
3 9 community college general fund purposes at a state general
3 10 election or at a special election held at any time other than
3 11 the time of a city regular election. However, the election
3 12 shall be held at the same time throughout the service delivery
3 13 area and the election shall not be held sooner than sixty days
3 14 after publication of notice of the ballot proposition. The
3 15 ballot proposition shall specify the rate of tax, the date the
3 16 tax will be imposed and repealed, and shall contain a
3 17 statement as to the specific purpose or purposes for which the
3 18 revenues shall be expended. The dates for the imposition and
3 19 repeal of the tax shall be as provided in subsection 1. The
3 20 rate of tax shall not be more than two=tenths of one percent.
3 21 The state commissioner of elections shall establish by rule
3 22 the form for the ballot proposition which form shall be
3 23 uniform throughout the state.
3 24 4. a. The tax may be repealed or the rate increased, but
3 25 not above two=tenths of one percent or decreased after an
3 26 election at which a majority of those voting on the question
3 27 of repeal or rate change favored the repeal or rate change.
3 28 The election at which the question of repeal or rate change is
3 29 offered shall be called and held in the same manner and under
3 30 the same conditions as provided in this section for the
3 31 election on the imposition of the tax. The election may be
3 32 held at any time but not sooner than sixty days following
3 33 publication of the ballot proposition. However, the tax shall
3 34 not be repealed before it has been in effect for one year.
3 35 b. Within ten days of the election on the question of the
4 1 imposition, repeal, or change in the rate of the tax, each
4 2 county commissioner of elections shall give written notice of
4 3 the result of the election by sending a copy of the abstract
4 4 of the votes from the election to the director of revenue.
4 5 Sec. 3. NEW SECTION. 423F.3 COLLECTION OF TAX.
4 6 1. If a majority of those voting on the question of
4 7 imposition of a local sales and services tax for community
4 8 college general fund purposes favors imposition of the tax,
4 9 the tax shall be imposed by each county board of supervisors
4 10 within the county pursuant to section 423F.2, at the rate
4 11 specified for the specified duration on the sales price taxed
4 12 by the state under chapter 423, subchapter II.
4 13 2. The tax shall be imposed on the same basis as the state
4 14 sales and services tax or in the case of the use of natural
4 15 gas, natural gas service, electricity, or electric service on
4 16 the same basis as the state use tax and shall not be imposed
4 17 on the sale of any property or on any service not taxed by the
4 18 state, except the tax shall not be imposed on the sales price
4 19 from the sale of motor fuel or special fuel as defined in
4 20 chapter 452A which is consumed for highway use or in
4 21 watercraft or aircraft if the fuel tax is paid on the
4 22 transaction and a refund has not or will not be allowed, on
4 23 the sales price from the rental of rooms, apartments, or
4 24 sleeping quarters which are taxed under chapter 422A during
4 25 the period the hotel and motel tax is imposed, on the sales
4 26 price from the sale of equipment by the state department of
4 27 transportation, on the sales price from the sale of self=
4 28 propelled building equipment, pile drivers, motorized
4 29 scaffolding, or attachments customarily drawn or attached to
4 30 self=propelled building equipment, pile drivers, and motorized
4 31 scaffolding, including auxiliary attachments which improve the
4 32 performance, safety, operation, or efficiency of the
4 33 equipment, and replacement parts and are directly and
4 34 primarily used by contractors, subcontractors, and builders
4 35 for new construction, reconstruction, alterations, expansion,
5 1 or remodeling of real property or structures, and on the sales
5 2 price from the sale of a lottery ticket or share in a lottery
5 3 game conducted pursuant to chapter 99G and except the tax
5 4 shall not be imposed on the sales price from the sale or use
5 5 of natural gas, natural gas service, electricity, or electric
5 6 service in a city or county where the sales price from the
5 7 sale of natural gas or electric energy are subject to a
5 8 franchise fee or user fee during the period the franchise or
5 9 user fee is imposed.
5 10 3. The tax is applicable to transactions within the county
5 11 where it is imposed and shall be collected by all persons
5 12 required to collect state sales or local excise taxes.
5 13 However, a person required to collect state retail sales tax
5 14 under chapter 423, subchapter II, is not required to collect
5 15 local sales and services tax on transactions delivered within
5 16 the area where the local sales and services tax is imposed
5 17 unless the person has physical presence in that taxing area.
5 18 The amount of the sale, for purposes of determining the amount
5 19 of the tax, does not include the amount of any state sales or
5 20 excise taxes or other local option sales or excise taxes. A
5 21 tax permit other than the state tax permit required under
5 22 section 423.36 shall not be required by local authorities.
5 23 4. The director of revenue shall credit tax receipts and
5 24 interest and penalties from the local sales and services tax
5 25 for community college general fund purposes to an account
5 26 within the county's local sales and services tax fund, as
5 27 created in section 423B.10, subsection 1, maintained in the
5 28 name of the community college located within the county. If
5 29 the director is unable to determine from which county any of
5 30 the receipts were collected, those receipts shall be allocated
5 31 among the possible counties based on allocation rules adopted
5 32 by the director.
5 33 5. a. The director of revenue by August 15 of each fiscal
5 34 year shall send to each community college where the tax is
5 35 imposed an estimate of the amount of tax moneys each community
6 1 college will receive for the year and for each month of the
6 2 year. At the end of each month, the director may revise the
6 3 estimates for the year and remaining months.
6 4 b. The director shall remit ninety=five percent of the
6 5 estimated tax receipts for the community college to the
6 6 community college on or before August 31 of the fiscal year
6 7 and on or before the last day of each following month.
6 8 c. The director shall remit a final payment of the
6 9 remainder of tax moneys due for the fiscal year before
6 10 November 10 of the next fiscal year. If an overpayment has
6 11 resulted during the previous fiscal year, the November payment
6 12 shall be adjusted to reflect any overpayment.
6 13 6. The local sales and services tax for community college
6 14 general fund purposes shall be administered as provided in
6 15 section 423B.9.
6 16 7. Construction contractors may make application to the
6 17 department for a refund of the additional local sales and
6 18 services tax paid under this chapter by reason of taxes paid
6 19 on goods, wares, or merchandise under the conditions specified
6 20 in section 423B.11. The refund shall be paid by the
6 21 department from the appropriate community college's account in
6 22 the local sales and services tax fund. The penalty provisions
6 23 contained in section 423B.11, subsection 3, shall apply
6 24 regarding an erroneous application for refund of local sales
6 25 and services tax paid under this chapter.
6 26 EXPLANATION
6 27 This bill authorizes the imposition of a local option sales
6 28 and services tax for community colleges at a maximum rate of
6 29 .2 percent. The tax revenues are to be used for any community
6 30 college general fund purpose. The tax must be approved at an
6 31 election held at any time other than city regular elections
6 32 and must be passed by a majority of those voting on the
6 33 question in the entire service delivery area in which the
6 34 community college is located. A "service delivery area" is an
6 35 area included within the merged area of the community college
7 1 which is realigned to the closest county boarder as determined
7 2 by the department of workforce development. The election may
7 3 be called by the board of directors of the community college
7 4 or as a result of a petition signed by 5 percent of the voters
7 5 in the service delivery area who voted at the last state
7 6 general election. The tax would be imposed for not more than
7 7 10 years.
7 8 LSB 5874YH 80
7 9 mg/sh/8