Senate File 108

                                       SENATE FILE       
                                       BY  REHBERG


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act making interest on bonds and notes issued for school
  2    infrastructure purposes exempt from state income tax.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2216SS 80
  5 rn/cf/24

PAG LIN

  1  1    Section 1.  NEW SECTION.  296.8  TAX EXEMPTION.
  1  2    Interest on any bonds or notes issued by a school district
  1  3 for school infrastructure purposes is exempt from state income
  1  4 tax.  For the purposes of this section, school infrastructure
  1  5 purposes refers to the purposes for which funds may be
  1  6 provided as specified in section 296.1.
  1  7    Sec. 2.  Section 422.7, Code 2003, is amended by adding the
  1  8 following new subsection:
  1  9    NEW SUBSECTION.  39.  Subtract interest earned on bonds and
  1 10 notes issued by a school district for school infrastructure
  1 11 purposes as provided in section 296.8.
  1 12    Sec. 3.  Section 422.35, Code 2003, is amended by adding
  1 13 the following new subsection:
  1 14    NEW SUBSECTION.  19.  Subtract interest earned on bonds and
  1 15 notes issued by a school district for school infrastructure
  1 16 purposes as provided in section 296.8.
  1 17                           EXPLANATION
  1 18    This bill provides that interest on any bonds or notes
  1 19 issued by a school district for school infrastructure purposes
  1 20 is exempt from state personal and corporate income tax.  The
  1 21 bill provides that school infrastructure purposes refers to
  1 22 the purposes for which funds may be provided as specified in
  1 23 Code section 296.1.  These purposes include the cost of
  1 24 purchasing, building, furnishing, reconstructing, repairing,
  1 25 improving or remodeling a schoolhouse or schoolhouses and
  1 26 additions thereto, a gymnasium, stadium, field house, school
  1 27 bus garage, teachers' or superintendent's home or homes, and
  1 28 procuring a site or sites therefore, or purchasing land to add
  1 29 to a site already owned, or procuring and improving a site for
  1 30 an athletic field, or improving a site already owned for an
  1 31 athletic field.
  1 32 LSB 2216SS 80
  1 33 rn/cf/24
  1 34
  1 35