Senate File 2025

                                   SENATE FILE       
                                   BY  BOLKCOM, WARNSTADT,
                                       QUIRMBACH, KREIMAN, BEALL,
                                       HATCH, STEWART, DVORSKY,
                                       CONNOLLY, GRONSTAL, KIBBIE,
                                       BLACK, HOLVECK, RAGAN,
                                       COURTNEY, DOTZLER, SENG,
                                       FRAISE, DEARDEN, and McCOY



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

                                      A BILL FOR

  1 An Act restoring the allocation of state franchise tax revenues
  2    to cities and counties.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5821XS 80
  5 mg/sh/8

PAG LIN

  1  1    Section 1.  Section 331.427, subsection 1, unnumbered
  1  2 paragraph 1, Code Supplement 2003, is amended to read as
  1  3 follows:
  1  4    Except as otherwise provided by state law, county revenues
  1  5 from taxes and other sources for general county services shall
  1  6 be credited to the general fund of the county, including
  1  7 revenues received under sections 9I.11, 101A.3, 101A.7,
  1  8 123.36, 123.143, 142B.6, 176A.8, 321.105, 321.152, 321G.7,
  1  9 section 331.554, subsection 6, sections 341A.20, 364.3,
  1 10 368.21, 422.65, 422A.2, 428A.8, 430A.3, 433.15, 434.19,
  1 11 445.57, 453A.35, 458A.21, 483A.12, 533.24, 556B.1, 583.6,
  1 12 602.8108, 904.908, and 906.17, and the following:
  1 13    Sec. 2.  NEW SECTION.  422.65  ALLOCATION OF REVENUE.
  1 14    All moneys received from the franchise tax shall be
  1 15 deposited in the general fund of the state.  Commencing with
  1 16 the fiscal year beginning July 1, 2004, there is appropriated
  1 17 for each fiscal year from the franchise tax money received and
  1 18 deposited in the general fund of the state the sum of eight
  1 19 million eight hundred thousand dollars which shall be paid
  1 20 quarterly on warrants by the director, after certification by
  1 21 the director, as follows:
  1 22    1.  Sixty percent to the general fund of the city from
  1 23 which the tax is collected.
  1 24    2.  Forty percent to the county from which the tax is
  1 25 collected.
  1 26    If the financial institution maintains one or more offices
  1 27 for the transaction of business, other than its principal
  1 28 office, a portion of its franchise tax shall be allocated to
  1 29 each office, based upon a reasonable measure of the business
  1 30 activity of each office.  The director shall prescribe, for
  1 31 each type of financial institution, a method of measuring the
  1 32 business activity of each office.  Financial institutions
  1 33 shall furnish all necessary information for this purpose at
  1 34 the request of the director.
  1 35    Quarterly, the director shall certify to the treasurer of
  2  1 state the amounts to be paid to each city and county from the
  2  2 general fund of the state.  All moneys received from the
  2  3 franchise tax are appropriated according to the provisions of
  2  4 this section.
  2  5                           EXPLANATION
  2  6    This bill reenacts the appropriation of $8.8 million of
  2  7 state franchise tax revenues and its allocation to cities and
  2  8 counties.  This appropriation and allocation were repealed in
  2  9 2003 Iowa Acts, chapter 178, section 11.  The appropriation
  2 10 and allocation will commence with the fiscal year beginning
  2 11 July 1, 2004.
  2 12 LSB 5821XS 80
  2 13 mg/sh/8