Senate File 2089
SENATE FILE
BY LAMBERTI
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the local sales and services tax for school
2 infrastructure purposes by removing the duration of tax
3 restriction, removing the limit on the amount of distributions
4 under certain circumstances, and defining the authority to
5 issue bonds in anticipation of receipt of tax revenues.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 422E.1, subsection 2, Code Supplement
1 2 2003, is amended to read as follows:
1 3 2. The maximum rate of tax shall be one percent. The tax
1 4 shall be imposed without regard to any other local sales and
1 5 services tax authorized in chapter 422B, and is repealed at
1 6 the expiration of a period of ten years of imposition or a
1 7 shorter period as provided in the ballot proposition or as
1 8 otherwise provided in this chapter. However, all local option
1 9 sales and services taxes for school infrastructure purposes
1 10 are repealed December 31, 2022.
1 11 Sec. 2. Section 422E.3, subsection 1, Code Supplement
1 12 2003, is amended to read as follows:
1 13 1. If a majority of those voting on the question of
1 14 imposition of a local sales and services tax for school
1 15 infrastructure purposes favors imposition of the tax, the tax
1 16 shall be imposed by the county board of supervisors within the
1 17 county pursuant to section 422E.2, at the rate specified for a
1 18 ten=year duration on the gross receipts taxed by the state
1 19 under chapter 422, division IV until the date of repeal
1 20 specified on the ballot.
1 21 Sec. 3. Section 422E.3A, subsection 2, paragraph b,
1 22 subparagraph (4), Code Supplement 2003, is amended by striking
1 23 the subparagraph.
1 24 Sec. 4. Section 422E.4, unnumbered paragraph 1, Code
1 25 Supplement 2003, is amended to read as follows:
1 26 The board of directors of a school district shall be
1 27 authorized to issue negotiable, interest=bearing school bonds,
1 28 without election, and utilize tax receipts derived from the
1 29 sales and services tax for school infrastructure purposes and
1 30 the supplemental school infrastructure amount distributed
1 31 pursuant to section 422E.3A, subsection 2, paragraph "b", for
1 32 principal and interest repayment. Proceeds of the bonds
1 33 issued pursuant to this section shall be utilized solely for
1 34 school infrastructure needs as school infrastructure is
1 35 defined in section 422E.1, subsection 3. Issuance of bonds
2 1 pursuant to this section shall be permitted only in a district
2 2 which has imposed a local sales and services tax for school
2 3 infrastructure purposes pursuant to section 422E.2. The
2 4 provisions of sections 298.22 through 298.24 shall apply
2 5 regarding the form, rate of interest, registration,
2 6 redemption, and recording of bond issues pursuant to this
2 7 section, with the exception that the maximum period during
2 8 which principal on the bonds is payable shall not exceed the
2 9 date of repeal stated on the ballot proposition. Bonds issued
2 10 under this section may be sold at public sale as provided in
2 11 chapter 75 without notice and hearing as provided in section
2 12 73A.l2. Bonds may bear dates, bear interest at rates not
2 13 exceeding that permitted by chapter 74A, mature in one or more
2 14 installments, be in registered form, carry registration and
2 15 conversion privileges, be payable as to principal and interest
2 16 at times and places, be subject to terms of redemption prior
2 17 to maturity with or without premium, and be in one or more
2 18 denominations, all as provided by the resolution of the board
2 19 of directors authorizing their issuance. The resolution may
2 20 also prescribe additional provisions, terms, conditions, and
2 21 covenants which the board of directors deems advisable,
2 22 including provisions for creating and maintaining reserve
2 23 funds, the issuance of additional bonds ranking on a parity
2 24 with such bonds and additional bonds junior and subordinate to
2 25 such bonds, and that such bonds shall rank on a parity with or
2 26 be junior and subordinate to any bonds which may be then
2 27 outstanding. Bonds may be issued to refund outstanding and
2 28 previously issued bonds under this section. Local option
2 29 sales and services tax revenue bonds are a contract between
2 30 the school district and holders, and the resolution issuing
2 31 the bonds and pledging local option sales and services tax
2 32 revenues to the payment of principal and interest on the bonds
2 33 is a part of the contract. Bonds issued pursuant to this
2 34 section shall not constitute indebtedness within the meaning
2 35 of any constitutional or statutory debt limitation or
3 1 restriction, and shall not be subject to any other law
3 2 relating to the authorization, issuance, or sale of bonds.
3 3 EXPLANATION
3 4 This bill amends Code chapter 422E relating to the local
3 5 option sales and services tax for school infrastructure
3 6 purposes. The bill strikes the provision that restricts the
3 7 duration of the tax to 10 years. The bill strikes the
3 8 provision that states that under the distribution formula a
3 9 school district is not to receive more than the guaranteed
3 10 school infrastructure amount which is $575, subject to
3 11 adjustment by the general assembly. The bill also rewrites
3 12 the bonding authority of the board of directors of a school
3 13 district so that it mirrors, to a large extent, the authority
3 14 set out for city and county revenue bonds under the local
3 15 option sales and services tax imposed under Code chapter 422B.
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