House File 497 - Introduced
HOUSE FILE
BY WENDT
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to school finance by providing for an increase in
2 the foundation property tax, an increase in the regular
3 program and special education support services foundation
4 bases, modifying related tax credits, and including effective
5 dates and applicability provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 1944YH 81
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PAG LIN
1 1 Section 1. Section 257.1, subsection 2, unnumbered
1 2 paragraph 2, Code 2005, is amended to read as follows:
1 3 For the budget year commencing July 1, 1999 2006, and for
1 4 each succeeding budget year, the regular program foundation
1 5 base per pupil is eighty=seven and five=tenths ninety=two and
1 6 four=tenths percent of the regular program state cost per
1 7 pupil. For the budget year commencing July 1, 1991 2006, and
1 8 for each succeeding budget year, the special education support
1 9 services foundation base is seventy=nine ninety=two and four=
1 10 tenths percent of the special education support services state
1 11 cost per pupil. The combined foundation base is the sum of
1 12 the regular program foundation base and the special education
1 13 support services foundation base.
1 14 Sec. 2. Section 257.3, subsection 1, unnumbered paragraph
1 15 1, Code 2005, is amended to read as follows:
1 16 Except as provided in subsections 2 and 3, a school
1 17 district shall cause to be levied each year, for the school
1 18 general fund, a foundation property tax equal to five six
1 19 dollars and forty ninety cents per thousand dollars of
1 20 assessed valuation on all taxable property in the district.
1 21 The county auditor shall spread the foundation levy over all
1 22 taxable property in the district.
1 23 Sec. 3. Section 257.3, subsection 2, paragraphs a and b,
1 24 Code 2005, are amended to read as follows:
1 25 a. Notwithstanding subsection 1, a reorganized school
1 26 district shall cause a foundation property tax of four five
1 27 dollars and forty ninety cents per thousand dollars of
1 28 assessed valuation to be levied on all taxable property which,
1 29 in the year preceding a reorganization, was within a school
1 30 district affected by the reorganization as defined in section
1 31 275.1, or in the year preceding a dissolution was a part of a
1 32 school district that dissolved if the dissolution proposal has
1 33 been approved by the director of the department of education
1 34 pursuant to section 275.55.
1 35 b. In succeeding school years, the foundation property tax
2 1 levy on that portion shall be increased to the rate of four
2 2 six dollars and ninety forty cents per thousand dollars of
2 3 assessed valuation the first succeeding year, five six dollars
2 4 and fifteen sixty=five cents per thousand dollars of assessed
2 5 valuation the second succeeding year, and five six dollars and
2 6 forty ninety cents per thousand dollars of assessed valuation
2 7 the third succeeding year and each year thereafter.
2 8 Sec. 4. Section 257.10, subsection 4, Code 2005, is
2 9 amended by adding the following new unnumbered paragraph:
2 10 NEW UNNUMBERED PARAGRAPH. For the budget year beginning
2 11 July 1, 2006, and succeeding budget years, the department of
2 12 management shall increase the special education support
2 13 services district cost per pupil for a school district
2 14 containing an area education agency with a special education
2 15 support services district cost per pupil which falls below the
2 16 special education support services state cost per pupil, to
2 17 equal the special education support services state cost per
2 18 pupil.
2 19 Sec. 5. Section 425A.3, subsection 1, Code 2005, is
2 20 amended to read as follows:
2 21 1. The family farm tax credit fund shall be apportioned
2 22 each year in the manner provided in this chapter so as to give
2 23 a credit against the tax on each eligible tract of
2 24 agricultural land within the several school districts of the
2 25 state in which the levy for the general school fund exceeds
2 26 five six dollars and forty fifty cents per thousand dollars of
2 27 assessed value. The amount of the credit on each eligible
2 28 tract of agricultural land shall be the amount the tax levied
2 29 for the general school fund exceeds the amount of tax which
2 30 would be levied on each eligible tract of agricultural land
2 31 were the levy for the general school fund five six dollars and
2 32 forty fifty cents per thousand dollars of assessed value for
2 33 the previous year. However, in the case of a deficiency in
2 34 the family farm tax credit fund to pay the credits in full,
2 35 the credit on each eligible tract of agricultural land in the
3 1 state shall be proportionate and applied as provided in this
3 2 chapter.
3 3 Sec. 6. Section 425A.5, Code 2005, is amended to read as
3 4 follows:
3 5 425A.5 COMPUTATION BY COUNTY AUDITOR.
3 6 The family farm tax credit allowed each year shall be
3 7 computed as follows: On or before April 1, the county auditor
3 8 shall list by school districts all tracts of agricultural land
3 9 which are entitled to credit, the taxable value for the
3 10 previous year, the budget from each school district for the
3 11 previous year, and the tax rate determined for the general
3 12 fund of the school district in the manner prescribed in
3 13 section 444.3 for the previous year, and if the tax rate is in
3 14 excess of five six dollars and forty fifty cents per thousand
3 15 dollars of assessed value, the auditor shall multiply the tax
3 16 levy which is in excess of five six dollars and forty fifty
3 17 cents per thousand dollars of assessed value by the total
3 18 taxable value of the agricultural land entitled to credit in
3 19 the school district, and on or before April 1, certify the
3 20 total amount of credit and the total number of acres entitled
3 21 to the credit to the department of revenue.
3 22 Sec. 7. Section 426.3, Code 2005, is amended to read as
3 23 follows:
3 24 426.3 WHERE CREDIT GIVEN.
3 25 The agricultural land credit fund shall be apportioned each
3 26 year in the manner hereinafter provided so as to give a credit
3 27 against the tax on each tract of agricultural lands within the
3 28 several school districts of the state in which the levy for
3 29 the general school fund exceeds five six dollars and forty
3 30 fifty cents per thousand dollars of assessed value; the amount
3 31 of such credit on each tract of such lands shall be the amount
3 32 the tax levied for the general school fund exceeds the amount
3 33 of tax which would be levied on said tract of such lands were
3 34 the levy for the general school fund five six dollars and
3 35 forty fifty cents per thousand dollars of assessed value for
4 1 the previous year, except in the case of a deficiency in the
4 2 agricultural land credit fund to pay said credits in full, in
4 3 which case the credit on each eligible tract of such lands in
4 4 the state shall be proportionate and shall be applied as
4 5 hereinafter provided.
4 6 Sec. 8. Section 426.6, unnumbered paragraph 1, Code 2005,
4 7 is amended to read as follows:
4 8 The agricultural land tax credit allowed each year shall be
4 9 computed as follows: On or before April 1, the county auditor
4 10 shall list by school districts all tracts of agricultural
4 11 lands which are entitled to credit, together with the taxable
4 12 value for the previous year, together with the budget from
4 13 each school district for the previous year, and the tax rate
4 14 determined for the general fund of the district in the manner
4 15 prescribed in section 444.3 for the previous year, and if such
4 16 tax rate is in excess of five six dollars and forty fifty
4 17 cents per thousand dollars of assessed value, the auditor
4 18 shall multiply the tax levy which is in excess of five six
4 19 dollars and forty fifty cents per thousand dollars of assessed
4 20 value by the total taxable value of the agricultural lands
4 21 entitled to credit in the district, and on or before April 1,
4 22 certify the amount to the department of revenue.
4 23 Sec. 9. EFFECTIVE AND APPLICABILITY DATES.
4 24 1. The sections of this Act increasing the regular program
4 25 foundation base and the special education support services
4 26 foundation base, and increasing the foundation property tax,
4 27 take effect July 1, 2005, and are applicable to the school
4 28 budget year beginning July 1, 2006, and succeeding budget
4 29 years.
4 30 2. The sections of this Act amending provisions relating
4 31 to the family farm tax credit and the agricultural land tax
4 32 credit take effect January 1, 2007, for taxes payable in the
4 33 fiscal year beginning July 1, 2007.
4 34 EXPLANATION
4 35 This bill provides for an increase in the foundation
5 1 property tax imposed under the state school foundation program
5 2 pursuant to Code section 257.3, from the current level of
5 3 $5.40 to $6.90 per $1,000 of assessed valuation on all taxable
5 4 property in a school district.
5 5 The bill also provides for an increase in the regular
5 6 program foundation base and the special education support
5 7 services foundation base under the state school foundation
5 8 program from the current foundation base level of 87.5 percent
5 9 and 79 percent, respectively, to the level of 92.4 percent.
5 10 The foundation base is the specified percentage of the state
5 11 cost per pupil calculation which is paid as state aid to
5 12 school districts, above and beyond the foundation property
5 13 tax.
5 14 Further, the bill provides for conforming changes to
5 15 provisions of the family farm tax credit and the agricultural
5 16 land tax credit contained in Code chapters 425A and 426
5 17 relating to the increase in the level of the foundation
5 18 property tax.
5 19 The bill provides that provisions increasing the regular
5 20 program foundation base and the special education support
5 21 services foundation base, and increasing the foundation
5 22 property tax, take effect July 1, 2005, and are applicable to
5 23 the school budget year beginning July 1, 2006, and succeeding
5 24 budget years. The bill provides that provisions amending the
5 25 family farm tax credit and the agricultural land tax credit
5 26 take effect January 1, 2007, for taxes payable in the fiscal
5 27 year beginning July 1, 2007.
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