House File 2248 - Introduced
HOUSE FILE
BY MAY
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the expansion of authorized uses of physical
2 plant and equipment levy revenue, and including an
3 applicability provision.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5760HH 81
6 rn/sh/8
PAG LIN
1 1 Section 1. Section 298.3, subsection 3, Code 2005, is
1 2 amended to read as follows:
1 3 3. The purchase, lease, or lease=purchase of a single unit
1 4 of equipment or technology exceeding five hundred dollars in
1 5 value per unit, and the purchase of software or payments under
1 6 a software licensing agreement exceeding five hundred dollars
1 7 in value per purchase or agreement relating to that equipment
1 8 or technology purchase, lease, or lease=purchase.
1 9 Sec. 2. Section 298.3, subsection 6, Code 2005, is amended
1 10 to read as follows:
1 11 6. Repairing, remodeling, reconstructing, improving,
1 12 maintaining, or expanding the schoolhouses or buildings and
1 13 additions to existing schoolhouses.
1 14 For the purpose of this subsection, "repairing" means
1 15 restoring an existing structure or thing to its original
1 16 condition, as near as may be, after decay, waste, injury, or
1 17 partial destruction, but does not include maintenance
1 18 including repairing a building in preparation for sale; and
1 19 "reconstructing" means rebuilding or restoring as an entity a
1 20 thing which was lost or destroyed. For the purpose of this
1 21 subsection, maintenance only includes costs exceeding five
1 22 hundred dollars per incidence or occurrence.
1 23 Sec. 3. Section 298.3, subsection 9, Code 2005, is amended
1 24 to read as follows:
1 25 9. Purchase, repair, or maintenance of transportation
1 26 equipment for transporting students, and for depreciation of
1 27 costs for leasing transportation services.
1 28 Sec. 4. Section 298.3, Code 2005, is amended by adding the
1 29 following new unnumbered paragraph:
1 30 NEW UNNUMBERED PARAGRAPH. A school district shall only be
1 31 authorized to utilize physical plant and equipment levy
1 32 revenue for the purchase of software or payments under a
1 33 software licensing agreement pursuant to subsection 3, for
1 34 maintenance costs or repairing a building in preparation for
1 35 sale pursuant to subsection 6, or for transportation repair,
2 1 maintenance, or depreciation costs pursuant to subsection 9,
2 2 if the department of management determines that the school
2 3 district has an assessed property tax valuation per pupil
2 4 below the statewide average assessed property tax valuation
2 5 per pupil.
2 6 Sec. 5. APPLICABILITY. This Act is applicable for
2 7 physical plant and equipment levies either in existence or
2 8 imposed on or after the effective date of this Act, and local
2 9 option sales taxes for school infrastructure purposes either
2 10 in existence or imposed on or after the effective date of this
2 11 Act.
2 12 EXPLANATION
2 13 This bill provides for the expansion of authorized uses for
2 14 revenue derived from the physical plant and equipment levy
2 15 specified in Code section 298.3, and by extension authorized
2 16 uses of revenue derived from the local option sales tax for
2 17 school infrastructure purposes specified in Code section
2 18 423E.1, since the latter Code section references and includes
2 19 purposes specified in Code section 298.3.
2 20 Currently, revenue derived from the physical plant and
2 21 equipment levy may be utilized, among other purposes, for the
2 22 purchase, lease, or lease=purchase of a single unit of
2 23 equipment or technology exceeding $500 in value per unit. The
2 24 bill expands this authorization to include the purchase of
2 25 software or payments under a software licensing agreement
2 26 exceeding $500 in value per purchase or agreement, which
2 27 relates to the equipment or technology purchase, lease, or
2 28 lease=purchase.
2 29 Additionally, revenue derived from the physical plant and
2 30 equipment levy may currently be utilized for repairing,
2 31 remodeling, reconstructing, improving, or expanding
2 32 schoolhouses or buildings and additions to existing
2 33 schoolhouses. The bill adds "maintaining" to this list, and
2 34 with reference to what constitutes "repair", deletes a
2 35 provision which excluded maintenance from what would be
3 1 considered the repairing of an existing structure, and adds
3 2 repairing a building in preparation for sale. The bill also
3 3 adds the provision that to be authorized, maintenance costs
3 4 must exceed $500 per incidence or occurrence.
3 5 The bill also provides that revenue derived from the
3 6 physical plant and equipment levy may be utilized for the
3 7 repair or maintenance of transportation equipment for
3 8 transporting students, and for depreciation of costs for
3 9 leasing transportation services. Currently, only the purchase
3 10 of such equipment is authorized with physical plant and
3 11 equipment levy revenue.
3 12 The bill adds a qualifying provision that a school district
3 13 shall only be authorized to utilize physical plant and
3 14 equipment levy revenue for the expanded purposes contained in
3 15 the bill if the department of management determines that the
3 16 school district has an assessed property tax valuation per
3 17 pupil below the statewide average assessed property tax
3 18 valuation per pupil.
3 19 The bill contains an applicability provision for physical
3 20 plant and equipment levies either in existence or imposed on
3 21 or after the bill's effective date, and for local option sales
3 22 taxes for school infrastructure purposes either in existence
3 23 or imposed on or after the bill's effective date.
3 24 LSB 5760HH 81
3 25 rn:rj/sh/8