Senate File 205
SENATE FILE
BY ZIEMAN
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to property tax school reorganization incentives
2 for specified school districts, and providing an effective
3 date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1022XS 80
6 rn/cl/14
PAG LIN
1 1 Section 1. Section 257.3, subsection 2, Code 2003, is
1 2 amended to read as follows:
1 3 2. TAX FOR REORGANIZED AND DISSOLVED DISTRICTS.
1 4 a. Notwithstanding subsection 1, a reorganized school
1 5 district shall cause a foundation property tax of four dollars
1 6 and forty cents per thousand dollars of assessed valuation to
1 7 be levied on all taxable property which, in the year preceding
1 8 a reorganization, was within a school district affected by the
1 9 reorganization as defined in section 275.1, or in the year
1 10 preceding a dissolution was a part of a school district that
1 11 dissolved if the dissolution proposal has been approved by the
1 12 director of the department of education pursuant to section
1 13 275.55. In the year preceding the reorganization or
1 14 dissolution, the school district affected by the
1 15 reorganization or the school district that dissolved must have
1 16 had a certified enrollment of fewer than six hundred in order
1 17 for the four=dollar=and=forty=cent levy to apply.
1 18 b. In succeeding school years, the foundation property tax
1 19 levy on that portion shall be increased to the rate of four
1 20 dollars and ninety cents per thousand dollars of assessed
1 21 valuation the first succeeding year, five dollars and fifteen
1 22 cents per thousand dollars of assessed valuation the second
1 23 succeeding year, and five dollars and forty cents per thousand
1 24 dollars of assessed valuation the third succeeding year and
1 25 each year thereafter.
1 26 c. The foundation property tax levy reduction pursuant to
1 27 this subsection shall be available if either of the following
1 28 apply:
1 29 (1) In the year preceding the reorganization or
1 30 dissolution, the school district affected by the
1 31 reorganization or the school district that dissolved had a
1 32 certified enrollment of fewer than six hundred pupils.
1 33 (2) In the year preceding the reorganization or
1 34 dissolution, the school district affected by the
1 35 reorganization or the school district that dissolved had a
2 1 certified enrollment of six hundred pupils or greater, and
2 2 entered into a reorganization or dissolution with one or more
2 3 school districts with a certified enrollment of fewer than six
2 4 hundred pupils. The amount of foundation property tax
2 5 reduction received by a school district qualifying for the
2 6 reduction pursuant to this subparagraph shall not exceed the
2 7 highest reduction amount provided in paragraphs "a" and "b"
2 8 received by any of the school districts with a certified
2 9 enrollment of fewer than six hundred pupils involved in the
2 10 reorganization pursuant to subparagraph (1) of this paragraph
2 11 "c".
2 12 d. For purposes of this section, a reorganized school
2 13 district is one which absorbs at least thirty percent of the
2 14 enrollment of the school district affected by a reorganization
2 15 or dissolved during a dissolution and in which action to bring
2 16 about a reorganization or dissolution is initiated by a vote
2 17 of the board of directors or jointly by the affected boards of
2 18 directors to take effect on or after July 1, 2002, and on or
2 19 before July 1, 2006. Each district which initiated, by a vote
2 20 of the board of directors or jointly by the affected boards,
2 21 action to bring about a reorganization or dissolution to take
2 22 effect on or after July 1, 2002, and on or before July 1,
2 23 2006, shall certify the date and the nature of the action
2 24 taken to the department of education by January 1 of the year
2 25 in which the reorganization or dissolution takes effect.
2 26 Sec. 2. EFFECTIVE DATE. This Act, being deemed of
2 27 immediate importance, takes effect upon enactment.
2 28 EXPLANATION
2 29 This bill provides for changes relating to school
2 30 reorganization incentives for specified school districts. The
2 31 bill provides that a school district with a certified
2 32 enrollment of 600 pupils or greater will qualify for a reduced
2 33 foundation property tax rate if the district meets the
2 34 requirements of Code section 257.3, subsection 2. Currently,
2 35 this subsection enables a school district with a certified
3 1 enrollment of fewer than 600 pupils to qualify for a
3 2 foundation property tax rate of $4.40 per $1,000 of assessed
3 3 value on all taxable property which, in the year preceding a
3 4 reorganization, was within a school district affected by a
3 5 reorganization or dissolution taking effect on or after July
3 6 1, 2002, and on or before July 1, 2006. The subsection also
3 7 provides that the reduced rate shall be increased in
3 8 subsequent years on a graduated basis of $4.90 per $1,000 of
3 9 assessed valuation the first succeeding year, $5.15 per $1,000
3 10 of assessed valuation the second succeeding year, and $5.40
3 11 per $1,000 of assessed valuation the third succeeding year and
3 12 each year thereafter.
3 13 The bill provides that the reduced rates shall be available
3 14 to a school district with a certified enrollment of 600 pupils
3 15 or greater if that district enters into a reorganization or
3 16 dissolution with a school district with a certified enrollment
3 17 of fewer than 600 pupils. The bill additionally provides that
3 18 the amount of property tax reduction for a school district
3 19 with a certified enrollment of 600 pupils or greater shall not
3 20 exceed the reduction amount received by a school district with
3 21 a certified enrollment of fewer than 600 pupils with which the
3 22 larger school district is involved in a reorganization or
3 23 dissolution.
3 24 The bill takes effect upon enactment.
3 25 LSB 1022XS 80
3 26 rn/cl/14.1