House File 2791 - Introduced
HOUSE FILE
BY COMMITTEE ON APPROPRIATIONS
(SUCCESSOR TO HF 2784)
(SUCCESSOR TO HF 2670)
(SUCCESSOR TO HF 2004)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act concerning community foundations and economic development
2 relating to the endow Iowa tax credit, the allocation of
3 gambling tax revenues, the distribution of county endowment
4 moneys, making an appropriation, and providing an effective
5 date.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 5566HW 81
8 ec/je/5
PAG LIN
1 1 Section 1. Section 15E.305, subsection 2, unnumbered
1 2 paragraph 1, Code Supplement 2005, is amended to read as
1 3 follows:
1 4 The aggregate amount of tax credits authorized pursuant to
1 5 this section shall not exceed a total of two million dollars
1 6 plus such additional credit amount as provided by this section
1 7 annually. The maximum amount of tax credits granted to a
1 8 taxpayer shall not exceed five percent of the aggregate amount
1 9 of tax credits authorized.
1 10 Sec. 2. Section 15E.305, subsection 2, Code Supplement
1 11 2005, is amended by adding the following new unnumbered
1 12 paragraph:
1 13 NEW UNNUMBERED PARAGRAPH. For purposes of this subsection,
1 14 the additional credit amount shall be an amount for each
1 15 applicable calendar year determined by the department of
1 16 revenue equal to the amount of money credited as provided by
1 17 section 99F.11, subsection 3, paragraph "e", subparagraph (3),
1 18 for the prior fiscal year.
1 19 Sec. 3. Section 15E.305, subsection 4, Code Supplement
1 20 2005, is amended by striking the subsection.
1 21 Sec. 4. Section 15E.311, subsection 3, paragraph a, Code
1 22 Supplement 2005, is amended to read as follows:
1 23 a. At the end of each fiscal year, moneys in the fund
1 24 shall be transferred into separate accounts within the fund
1 25 and designated for use by each county in which no licensee
1 26 authorized to conduct gambling games under chapter 99F was
1 27 located during that fiscal year. Moneys transferred to county
1 28 accounts shall be divided equally among the counties. Moneys
1 29 transferred into an account for a county shall be transferred
1 30 by the department to an eligible county recipient for that
1 31 county. Of the moneys transferred, an eligible county
1 32 recipient shall distribute seventy=five percent of the moneys
1 33 as grants to charitable organizations for charitable purposes
1 34 in that county and shall retain twenty=five percent of the
1 35 moneys for use in establishing a permanent endowment fund for
2 1 the benefit of charitable organizations for charitable
2 2 purposes. Of the amounts distributed, eligible county
2 3 recipients shall give special consideration to grants for
2 4 projects that include significant vertical infrastructure
2 5 components designed to enhance quality of life aspects within
2 6 local communities.
2 7 Sec. 5. Section 15E.311, subsection 6, Code Supplement
2 8 2005, is amended to read as follows:
2 9 6. Three percent of the moneys deposited in the county
2 10 endowment fund shall be used by the lead philanthropic
2 11 organization identified by the department pursuant to section
2 12 15E.304 for purposes of administering and marketing the county
2 13 endowment fund. Of the amounts available to be used by the
2 14 lead philanthropic organization pursuant to this subsection,
2 15 seventy thousand dollars is appropriated to the department of
2 16 economic development each fiscal year for administrative costs
2 17 related to the endow Iowa program.
2 18 Sec. 6. Section 99F.11, subsection 3, paragraphs d and e,
2 19 Code 2005, are amended to read as follows:
2 20 d. One=half Eight=tenths of one percent of the adjusted
2 21 gross receipts tax shall be deposited in the county endowment
2 22 fund created in section 15E.311.
2 23 e. Two=tenths of one percent of the adjusted gross
2 24 receipts tax shall be allocated each fiscal year as follows:
2 25 (1) Five hundred twenty thousand dollars is appropriated
2 26 each fiscal year to the department of cultural affairs with
2 27 one=half of the moneys allocated for operational support
2 28 grants and the remaining one=half allocated for the community
2 29 cultural grants program established under section 303.3.
2 30 (2) One=half of the moneys remaining after the
2 31 appropriation in subparagraph (1) is appropriated to the
2 32 community development division of the department of economic
2 33 development for the purposes of regional tourism marketing.
2 34 However, none of the moneys appropriated under this
2 35 subparagraph shall be used for administrative purposes.
3 1 (3) One=half of the moneys remaining after the
3 2 appropriation in subparagraph (1) shall be credited to the
3 3 general fund of the state for the purpose of funding the endow
3 4 Iowa tax credit provided in section 15E.305.
3 5 f. The remaining amount of the adjusted gross receipts tax
3 6 shall be credited to the general fund of the state.
3 7 Sec. 7. 2003 Iowa Acts, 1st Extraordinary Session, chapter
3 8 2, section 93, is amended to read as follows:
3 9 SEC. 93. The divisions of this Act designated economic
3 10 development appropriations, workforce=related issues, loan and
3 11 credit guarantee fund, university=based research utilization
3 12 program appropriation, endow Iowa tax credit, and
3 13 rehabilitation project tax credits are repealed effective June
3 14 30, 2010.
3 15 Sec. 8. EFFECTIVE DATE. This Act takes effect July 1,
3 16 2007.
3 17 EXPLANATION
3 18 This bill concerns the endow Iowa tax credit and the
3 19 distribution of gambling tax revenues collected from excursion
3 20 gambling boats and racetracks.
3 21 Code section 15E.305, concerning the endow Iowa tax credit,
3 22 is amended. The bill increases the aggregate amount of tax
3 23 credits authorized in a calendar year by an amount equal to
3 24 the amount generated for this purpose from a distribution of
3 25 gambling tax revenues generated in the prior fiscal year. The
3 26 bill eliminates the provision ending this tax credit after
3 27 December 31, 2008. The bill also eliminates the repeal of the
3 28 Code provisions concerning the endow Iowa tax credit that
3 29 would have occurred on June 30, 2010.
3 30 Code section 15E.311 is amended to provide that eligible
3 31 county recipients receiving money from the county endowment
3 32 fund shall consider grants for projects that include vertical
3 33 infrastructure components designed to enhance the quality of
3 34 life within local communities. In addition, the section is
3 35 amended to provide that of the three percent of moneys
4 1 deposited in the fund and available to be used by the lead
4 2 philanthropic organization for administrative costs, $70,000
4 3 is appropriated to the department of economic development for
4 4 its administrative costs for the endow Iowa program.
4 5 Code section 99F.11, subsection 3, concerning the
4 6 distribution of gambling tax revenues from gambling games at
4 7 excursion gambling boats and racetracks, is amended. Current
4 8 law provides that one=half of 1 percent of tax revenues shall
4 9 be deposited in the county endowment fund. The bill increases
4 10 this percentage to eight=tenths of 1 percent. The bill also
4 11 provides that two=tenths of 1 percent of tax revenues is
4 12 allocated as follows, with $520,000 appropriated to the
4 13 department of cultural affairs and split equally between
4 14 operational support grants and the community cultural grants
4 15 program. Of the remaining moneys derived from the two=tenths
4 16 of 1 percent, one=half is appropriated to the community
4 17 development division of the department of economic development
4 18 for regional tourism marketing and one=half shall be credited
4 19 to the general fund of the state for the purposes of funding
4 20 the endow Iowa tax credit.
4 21 The bill takes effect July 1, 2007.
4 22 LSB 5566HW 81
4 23 ec:rj/je/5