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 the three=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 the above three=year period fiscal
  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 above three=year period fiscal
  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 the above three=year period fiscal 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