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