House File 2175 - Introduced HOUSE FILE BY WATTS, STRUYK, and KURTENBACH Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the distribution of local option sales and 2 services tax revenues to cities and counties and providing an 3 applicability date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5287YH 81 6 mg/je/5 PAG LIN 1 1 Section 1. Section 423B.7, subsection 4, Code 2005, is 1 2 amended to read as follows: 1 3 4. Twenty=five percent of each county's account shall be 1 4 remitted based on the sum of property tax dollars levied by 1 5 the board of supervisors if the tax was imposed in the 1 6 unincorporated areas and each city in the county where the tax 1 7 was imposed during thethree=year period beginning July 1, 1 8 1982, and ending June 30, 1985,fiscal year ending after the 1 9 most recent certified federal decennial census as follows: 1 10 a. To the board of supervisors a pro rata share based upon 1 11 the percentage of the total property tax dollars levied by the 1 12 board of supervisors during theabove three=year periodfiscal 1 13 year. 1 14 b. To each city council where the tax was imposed a pro 1 15 rata share based upon the percentage of property tax dollars 1 16 levied by the city during the abovethree=year periodfiscal 1 17 year of the above total property tax dollars levied by the 1 18 board of supervisors and each city where the tax was imposed 1 19 during theabove three=year periodfiscal year. 1 20 c. If a city or county has issued bonds under this chapter 1 21 prior to April 1, 2006, for which revenues from the local 1 22 option sales and services tax have been pledged, the city or 1 23 county shall notify the department of revenue by August 1, 1 24 2007, of the amount paid on those bonds during the fiscal year 1 25 beginning July 1, 2006. If the amount paid is greater than 1 26 the amount that the city or county would receive under 1 27 paragraph "a" or "b", the department shall remit to the city 1 28 or county the larger amount during each subsequent fiscal year 1 29 until the bonds are repaid, notwithstanding paragraph "a" or 1 30 "b". The department shall make a pro rata adjustment in the 1 31 payments to the other local governments which receive revenues 1 32 based upon paragraphs "a" and "b". 1 33 Sec. 2. APPLICABILITY DATE. This Act applies to local 1 34 sales and services tax revenues distributed during fiscal 1 35 years beginning on or after July 1, 2007. 2 1 EXPLANATION 2 2 Under current law, county=imposed local option sales and 2 3 services tax revenues are partly distributed on a population 2 4 basis according to the most recent certified federal census 2 5 and on the basis of property taxes levied during the three= 2 6 year fiscal period beginning July 1, 1982, and ending June 30, 2 7 1985. This bill changes the distribution based upon property 2 8 taxes during that three=year period to the property taxes 2 9 levied during the fiscal year ending after the most recent 2 10 certified federal decennial census. 2 11 The bill makes provision for cities and counties that have 2 12 pledged revenues for bonds issued prior to April 1, 2006, 2 13 which may receive less moneys than in the fiscal year 2 14 beginning July 1, 2006. 2 15 The bill applies to distributions made during fiscal years 2 16 beginning on or after July 1, 2007. 2 17 LSB 5287YH 81 2 18 mg:nh/je/5.3