Senate File 24

                                       SENATE FILE       
                                       BY  HATCH


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

                                      A BILL FOR

  1 An Act relating to payments from the personal property tax
  2    replacement fund to city=county consolidated governments and
  3    community commonwealths.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1068XS 80
  6 sc/pj/5

PAG LIN

  1  1    Section 1.  Section 405A.8, Code 2003, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  1A.  a.  Before the amount appropriated
  1  4 under this section is allocated pursuant to the provisions of
  1  5 this chapter, the amount computed in paragraph "b" shall be
  1  6 deducted from the appropriation and paid to a city=county
  1  7 consolidated government formed under sections 331.247 through
  1  8 331.252 or a community commonwealth formed under sections
  1  9 331.260 through 331.263.
  1 10    b.  Each year for ten years following the formation of a
  1 11 city=county consolidated government or a community
  1 12 commonwealth government, each such government shall be paid an
  1 13 amount equal to five dollars multiplied by the population of
  1 14 the consolidated government or commonwealth areas.  The amount
  1 15 due each city=county consolidated government or each community
  1 16 commonwealth for each fiscal year shall be paid in the form of
  1 17 a warrant payable to the treasurer of the respective
  1 18 consolidated or commonwealth governments by the department of
  1 19 revenue and finance according to the schedule in section
  1 20 405A.9.
  1 21    c.  The payment made under this subsection is in addition
  1 22 to the personal property tax replacement allocation due the
  1 23 city=county consolidated government or the community
  1 24 commonwealth.
  1 25    Sec.  2.  Section 427A.12, subsection 1, Code 2003, is
  1 26 amended to read as follows:
  1 27    1.  A personal property tax replacement fund is established
  1 28 as a permanent fund in the office of the treasurer of state,
  1 29 for the purpose of reimbursing the taxing districts for their
  1 30 loss of revenue from personal property taxes due to the
  1 31 provisions of this chapter, determined as provided in this
  1 32 section, and for making payments to city=county consolidated
  1 33 governments and community commonwealths pursuant to section
  1 34 405A.8.
  1 35                           EXPLANATION
  2  1    This bill provides that before the state appropriation to
  2  2 the personal property tax replacement fund is allocated among
  2  3 local governments, an amount shall be paid to city=county
  2  4 consolidated governments and community commonwealths in
  2  5 addition to the amount they are allocated under the personal
  2  6 property tax replacement formula.  The amount to be paid to a
  2  7 city=county consolidated government or a community
  2  8 commonwealth is equal to $5.00 per capita.  The payments are
  2  9 to be paid for 10 years following formation of the city=county
  2 10 consolidated government or the community commonwealth.
  2 11 LSB 1068XS 80
  2 12 sc/pj/5