Senate File 291
SENATE FILE
BY KIBBIE
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the imposition of a community college income
2 surtax.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2325SS 80
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PAG LIN
1 1 Section 1. Section 260C.18, Code 2003, is amended by
1 2 adding the following new subsection:
1 3 NEW SUBSECTION. 8. Revenue derived from imposition of the
1 4 income surtax authorized pursuant to section 260C.26.
1 5 Sec. 2. NEW SECTION. 260C.26 INCOME SURTAX.
1 6 1. An income surtax that provides funding for community
1 7 colleges in addition to the taxes authorized pursuant to
1 8 sections 260C.17, 260C.22, and 260C.28 is established. The
1 9 income surtax may be imposed for a period not to exceed five
1 10 years by a resolution adopted by the board of directors of a
1 11 merged area, or for a period not to exceed ten years if
1 12 approved by a majority of the registered voters voting in the
1 13 merged area. The rate of income surtax shall be established
1 14 by the board, not to exceed one=half of one percent. Revenue
1 15 derived from the income surtax may be utilized for any purpose
1 16 specified by the board either by resolution in the case of a
1 17 board=authorized income surtax, or as stated on the ballot
1 18 proposition.
1 19 2. If the board does not provide for an election and
1 20 adopts a resolution to impose the income surtax for a period
1 21 not to exceed five years, the income surtax shall be imposed
1 22 unless, within twenty=eight days following the action of the
1 23 board, the secretary of the board receives a petition
1 24 containing the required number of signatures, asking that an
1 25 election be called to approve or disapprove the action of the
1 26 board in adopting the resolution to impose the tax. The
1 27 petition must be signed by registered voters equal in number
1 28 to not less than one hundred or thirty percent of the number
1 29 of voters at the last preceding regular school election,
1 30 whichever is greater. The board shall either rescind its
1 31 action or direct the county commissioner of elections to
1 32 submit the question to the registered voters of the merged
1 33 area at the next following regular school election or a
1 34 special election. If a majority of those voting on the
1 35 question at the election favors disapproval of the action of
2 1 the board, the board shall not impose the income surtax. If a
2 2 majority of those voting on the question does not favor
2 3 disapproval of the action, the board shall certify the results
2 4 of the election to the department of management and the income
2 5 surtax shall be imposed as provided in subsection 4.
2 6 3. If the board adopts a resolution to impose the income
2 7 surtax for a period exceeding five years, but not to exceed
2 8 ten years, the board shall submit the question of imposition
2 9 of the income surtax to the registered voters in the merged
2 10 area pursuant to the election provisions of section 260C.15.
2 11 4. An income surtax shall be imposed for tax years
2 12 beginning on or after January 1 of the fiscal year in which
2 13 the resolution was adopted or a favorable election was held,
2 14 on the state individual income tax of each individual residing
2 15 in the merged area at the end of the individual's applicable
2 16 tax year. However, the cumulative total of the percents of
2 17 income surtax imposed on any taxpayer in the merged area shall
2 18 not exceed twenty percent. For purposes of this section,
2 19 "state individual income tax" means the tax computed under
2 20 section 422.5, less the credits allowed in sections 422.11A,
2 21 422.11B, 422.12, and 422.12B.
2 22 5. The director of revenue and finance shall administer
2 23 the income surtax imposed under this section, and sections
2 24 422.20, 422.22 to 422.31, 422.68, and 422.72 to 422.75 shall
2 25 apply with respect to administration of the income surtax.
2 26 The income surtax shall be made a part of the Iowa individual
2 27 income tax return subject to the conditions and restrictions
2 28 set forth in section 422.21. The director shall collect and
2 29 account for the income surtax and any interest and penalties,
2 30 and shall credit income surtax receipts and any interest and
2 31 penalties collected from returns filed on or before November 1
2 32 of the calendar year following the tax year for which the
2 33 income surtax is imposed to a community college income surtax
2 34 fund created in the department of revenue and finance. All
2 35 income surtax receipts and any interest and penalties received
3 1 or refunded from returns filed after November 1 of the
3 2 calendar year following the tax year for which the income
3 3 surtax is imposed shall be deposited in or withdrawn from the
3 4 general fund of the state and shall be considered part of the
3 5 cost of administering the income surtax.
3 6 6. Amounts credited to the community college income surtax
3 7 fund shall be separately allocated to the credit of each
3 8 merged area, and a separate accounting of each surtax, by
3 9 merged area, shall be maintained. The director of revenue and
3 10 finance shall draw warrants in payment of the surtaxes
3 11 collected in each merged area. Warrants shall be payable in
3 12 two installments to be paid on approximately the first day of
3 13 December and the first day of February following collection of
3 14 the taxes and shall be delivered to the respective merged
3 15 areas.
3 16 Sec. 3. Section 298.14, unnumbered paragraph 1, Code 2003,
3 17 is amended to read as follows:
3 18 For each fiscal year, the cumulative total of the percents
3 19 of surtax approved by the board of directors of a school
3 20 district and collected by the department of revenue and
3 21 finance under sections 257.21, 257.29, and 298.2, and the
3 22 enrichment surtax under section 442.15, Code 1989, and an the
3 23 income surtax collected by a political subdivision under
3 24 chapter 422D, and the income surtax collected pursuant to
3 25 section 260C.26 shall not exceed twenty percent.
3 26 EXPLANATION
3 27 This bill provides for the imposition of a community
3 28 college income surtax. The bill provides that the income
3 29 surtax may be imposed for a period not to exceed five years by
3 30 a resolution adopted by the board of directors of a merged
3 31 area, or for a period not to exceed 10 years if approved by a
3 32 majority vote of the eligible electors in the merged area.
3 33 The bill provides that the rate of tax shall not exceed one=
3 34 half of 1 percent, and that revenue derived from the income
3 35 surtax may be utilized for any purpose specified by the board
4 1 and, if applicable, stated on the ballot proposition.
4 2 The bill provides that if the board adopts a resolution to
4 3 impose the income surtax for a period not to exceed five
4 4 years, reverse referendum provisions are applicable. The bill
4 5 provides that if the board adopts a resolution to impose the
4 6 income surtax for a period exceeding five years, but not to
4 7 exceed 10 years, the board shall submit the question of
4 8 imposition of the income surtax to the registered voters in
4 9 the merged area pursuant to the election provisions of Code
4 10 section 260C.15.
4 11 The bill provides that the income surtax shall be imposed
4 12 for tax years beginning on or after January 1 of the fiscal
4 13 year in which the resolution was adopted or a favorable
4 14 election was held, on the state individual income tax of each
4 15 individual residing in the merged area at the end of the
4 16 individual's applicable tax year. The bill provides, however,
4 17 that the cumulative total of the percents of income surtax
4 18 imposed on any taxpayer in the merged area shall not exceed 20
4 19 percent, and makes corresponding changes to Code section
4 20 298.14. The bill provides references to Code sections
4 21 specifying the computation of the state individual income tax
4 22 and the application of credits to the tax, and provides
4 23 references to several Code sections regarding administration
4 24 of the tax.
4 25 The bill provides that the director of revenue and finance
4 26 shall collect and account for the income surtax and any
4 27 interest and penalties, and shall credit them to a community
4 28 college income surtax fund created in the department of
4 29 revenue and finance. The bill provides that amounts credited
4 30 to the fund shall be separately allocated to the credit of
4 31 each merged area, and a separate accounting of each surtax, by
4 32 merged area, shall be maintained. The bill provides that the
4 33 director of revenue and finance shall draw warrants in payment
4 34 of the surtaxes collected in each merged area, which shall be
4 35 payable in two installments to be paid on approximately the
5 1 first day of December and the first day of February following
5 2 collection of the taxes and shall be delivered to the
5 3 respective merged areas.
5 4 LSB 2325SS 80
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