Senate File 2133
SENATE FILE
BY WARNSTADT
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the distribution of moneys in the secure an
2 advanced vision for education fund under the local sales and
3 services tax for school infrastructure purposes and including
4 an effective date.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 5706XS 80
7 mg/sh/8
PAG LIN
1 1 Section 1. Section 422E.3, subsection 5, paragraph e, Code
1 2 Supplement 2003, is amended by striking the paragraph and
1 3 inserting in lieu thereof the following:
1 4 e. The amount of tax receipts credited to the account
1 5 within the secure an advanced vision for education fund
1 6 maintained in the name of a school district shall be
1 7 distributed to that school district as provided in paragraphs
1 8 "a", "b", and "c". Any additional moneys available to the
1 9 school district from the fund shall be determined and
1 10 distributed as a supplemental school infrastructure amount as
1 11 provided in section 422E.3A, subsection 3.
1 12 Sec. 2. Section 422E.3A, subsection 1, Code Supplement
1 13 2003, is amended to read as follows:
1 14 1. A secure an advanced vision for education fund is
1 15 created as a separate and distinct fund in the state treasury
1 16 under the control of the department of revenue. Moneys in the
1 17 fund include revenues credited to the fund pursuant to this
1 18 chapter, appropriations made to the fund, and other moneys
1 19 deposited into the fund. Appropriations made to the fund
1 20 shall be credited to a separate appropriations account. Any
1 21 amounts disbursed from the fund shall be utilized for school
1 22 infrastructure purposes or property tax relief.
1 23 Sec. 3. Section 422E.3A, subsections 2 through 5, Code
1 24 Supplement 2003, are amended by striking the subsections and
1 25 inserting in lieu thereof the following:
1 26 2. a. For purposes of the distributions in subsection 3,
1 27 the department of education, in consultation with the
1 28 departments of management and revenue, shall compute by June 1
1 29 preceding each budget year the infrastructure tax capacity,
1 30 statewide infrastructure tax capacity, and infrastructure tax
1 31 capacity inequity for each school district located in whole or
1 32 in part in a county that has imposed the local sales and
1 33 services tax for school infrastructure purposes under this
1 34 chapter.
1 35 b. For purposes of this section:
2 1 (1) "Actual enrollment" for a school district means the
2 2 actual enrollment as reported by October 1 to the department
2 3 of management by the department of education pursuant to
2 4 section 257.6, subsection 1.
2 5 (2) "Infrastructure tax capacity" means for a school
2 6 district the estimated amount of revenues that a school
2 7 district receives or would receive if the regular physical
2 8 plant and equipment levy of thirty=three cents per thousand
2 9 dollars is imposed, divided by the school district's actual
2 10 enrollment.
2 11 (3) "Infrastructure tax capacity inequity" means the
2 12 amount that a school district's infrastructure tax capacity is
2 13 less than the statewide infrastructure tax capacity. If a
2 14 school district's infrastructure tax capacity exceeds the
2 15 statewide infrastructure tax capacity, the school district
2 16 does not have an inequity.
2 17 (4) "Statewide infrastructure tax capacity" means the
2 18 amount determined by estimating the total revenues that would
2 19 be generated by a regular physical plant and equipment levy of
2 20 thirty=three cents per thousand dollars if imposed by all the
2 21 school districts during the budget year and dividing this
2 22 estimated revenue amount by the sum of the combined actual
2 23 enrollment for all school districts.
2 24 3. The appropriations credited in a fiscal year to the
2 25 appropriations account of the secure an advanced vision for
2 26 education fund shall be distributed as a supplemental school
2 27 infrastructure amount as follows:
2 28 a. The department of education shall compute the
2 29 infrastructure tax capacity inequity of each school district
2 30 located in whole or in part in a county that has imposed the
2 31 tax under this chapter.
2 32 b. The department of revenue, in conjunction with the
2 33 department of education, shall distribute to the extent
2 34 sufficient funds are available a supplemental school
2 35 infrastructure amount to each school district that has an
3 1 infrastructure tax capacity inequity. The amount of the
3 2 supplemental school infrastructure amount distributed shall be
3 3 an amount equal to the school district's infrastructure tax
3 4 capacity inequity. If sufficient funds are not available, the
3 5 director of revenue shall distribute to the school district
3 6 with the highest infrastructure tax capacity inequity an
3 7 amount equal to such inequity. Any additional funds shall
3 8 then be distributed to the school district with the next
3 9 highest inequity. Any additional funds will then be
3 10 distributed to the next school district in descending order of
3 11 inequity until the funds have all been distributed.
3 12 4. Moneys received by a school district as a supplemental
3 13 school infrastructure amount shall be used solely for school
3 14 infrastructure purposes and shall not be used to reduce any
3 15 property tax levy.
3 16 Sec. 4. Section 422E.4, unnumbered paragraph 1, Code
3 17 Supplement 2003, is amended to read as follows:
3 18 The board of directors of a school district shall be
3 19 authorized to issue negotiable, interest=bearing school bonds,
3 20 without election, and utilize tax receipts derived from the
3 21 sales and services tax for school infrastructure purposes and
3 22 the supplemental school infrastructure amount distributed
3 23 pursuant to section 422E.3A, subsection 2, paragraph "b" 3,
3 24 for principal and interest repayment. Proceeds of the bonds
3 25 issued pursuant to this section shall be utilized solely for
3 26 school infrastructure needs as school infrastructure is
3 27 defined in section 422E.1, subsection 3. Issuance of bonds
3 28 pursuant to this section shall be permitted only in a district
3 29 which has imposed a local sales and services tax for school
3 30 infrastructure purposes pursuant to section 422E.2. The
3 31 provisions of sections 298.22 through 298.24 shall apply
3 32 regarding the form, rate of interest, registration,
3 33 redemption, and recording of bond issues pursuant to this
3 34 section, with the exception that the maximum period during
3 35 which principal on the bonds is payable shall not exceed the
4 1 date of repeal stated on the ballot proposition.
4 2 Sec. 5. EFFECTIVE DATE. This Act, being deemed of
4 3 immediate importance, takes effect upon enactment.
4 4 EXPLANATION
4 5 Under present law, Code chapter 422E, school districts may
4 6 receive, through a county=imposed local option sales and
4 7 services tax for school infrastructure purposes, moneys to be
4 8 used for infrastructure or property tax levy reduction.
4 9 Specifically, the chapter provides that counties that impose
4 10 the local option sales and services tax on or after April 1,
4 11 2003, will have their tax collections placed in a secure an
4 12 advanced vision for education fund. Each school district
4 13 within such counties will receive from this fund the amount
4 14 per pupil collected in its county, not to exceed the school
4 15 district's guaranteed per pupil amount. If the amount of the
4 16 per pupil amount collected is less than the guaranteed per
4 17 pupil amount, the school district would receive a supplemental
4 18 amount per pupil equal to the difference. School districts
4 19 located in counties that have imposed the tax prior to April
4 20 1, 2003, would also have their tax collections deposited into
4 21 the fund but would receive all of the tax collected in the
4 22 county without limitation by the guaranteed per pupil amount.
4 23 However, a school district that receives less than its
4 24 guaranteed per pupil amount would also receive a supplemental
4 25 amount per pupil equal to the difference. A school district's
4 26 guaranteed per pupil amount equals $575 per pupil if the
4 27 school district has imposed the full one cent tax for the
4 28 entire fiscal year. If the tax is imposed for less than one
4 29 cent or for less than the entire fiscal year, a proportional
4 30 amount would be the guaranteed per pupil amount.
4 31 This bill amends the present distribution formula. The
4 32 bill provides that each school district would receive the
4 33 amount of local sales and services tax collected in the county
4 34 prorated, based upon its enrollment in the county. In
4 35 addition, any other moneys, including appropriations,
5 1 deposited into the secure an advanced vision for education
5 2 fund would be distributed to those school districts located in
5 3 a county that has imposed the infrastructure tax which would
5 4 not be able to raise from the 33 cents per $1,000 of assessed
5 5 value regular physical plant and equipment levy an amount per
5 6 pupil at least equal to the statewide average per pupil amount
5 7 raised by such a levy.
5 8 The bill takes effect upon enactment.
5 9 LSB 5706XS 80
5 10 mg/sh/8