House File 514 - Introduced
HOUSE FILE
BY MASCHER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act authorizing the imposition of an income surtax by school
2 districts for school infrastructure purposes.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2490YH 81
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PAG LIN
1 1 Section 1. Section 298.14, unnumbered paragraphs 1 and 2,
1 2 Code 2005, are amended to read as follows:
1 3 For each fiscal year, the cumulative total of the percents
1 4 of surtax approved by the board of directors of a school
1 5 district and collected by the department of revenue under
1 6 sections 257.21, 257.29, and 298.2, chapter 422F, and the
1 7 enrichment surtax under section 442.15, Code 1989, and an
1 8 income surtax collected by a political subdivision under
1 9 chapter 422D, shall not exceed twenty percent.
1 10 A school district income surtax fund is created in the
1 11 office of treasurer of state. Income surtaxes collected by
1 12 the department of revenue under sections 257.21, 257.29, and
1 13 298.2, chapter 422F, and section 442.15, Code 1989, shall be
1 14 deposited in the school district income surtax fund to the
1 15 credit of each school district. A separate accounting of each
1 16 surtax, by school district, shall be maintained.
1 17 Sec. 2. NEW SECTION. 422F.1 AUTHORIZATION == RATE OF TAX
1 18 == USE OF REVENUES.
1 19 1. A local income surtax for school infrastructure
1 20 purposes may be imposed by a school district as provided in
1 21 this chapter.
1 22 2. The maximum rate of tax shall be set by the board of
1 23 directors of the school district and shall be in increments of
1 24 one percent, subject to the limitation specified in section
1 25 298.14. The income surtax shall be imposed for a period of
1 26 ten years.
1 27 3. The local income surtax for school infrastructure
1 28 purposes shall be imposed on the state individual income tax
1 29 for the calendar year during which the school's budget year
1 30 begins, or for a taxpayer's fiscal year ending during the
1 31 second half of that calendar year and after the date of the
1 32 favorable election or the first half of the succeeding
1 33 calendar year, and shall be imposed on all individuals
1 34 residing in the school district on the last day of the
1 35 applicable tax year.
2 1 Local income surtax moneys received by a school district
2 2 for school infrastructure purposes pursuant to this chapter
2 3 shall be utilized for school infrastructure needs.
2 4 4. For purposes of this chapter:
2 5 a. "School infrastructure" means those activities for
2 6 which a school district is authorized to contract indebtedness
2 7 and issue general obligation bonds under section 296.1, except
2 8 those activities related to a teacher's or superintendent's
2 9 home or homes. These activities include the construction,
2 10 reconstruction, repair, demolition work, purchasing, or
2 11 remodeling of schoolhouses, stadiums, gyms, fieldhouses, and
2 12 bus garages and the procurement of schoolhouse construction
2 13 sites and the making of site improvements and those activities
2 14 for which revenues under section 298.3 or 300.2 may be spent.
2 15 Additionally, "school infrastructure" includes the payment or
2 16 retirement of outstanding bonds previously issued for school
2 17 infrastructure purposes as defined in this subsection, and the
2 18 payment or retirement of bonds issued under section 422F.8.
2 19 b. "State individual income tax" means the taxes computed
2 20 under section 422.5, less the credits allowed in sections
2 21 422.11A, 422.11B, 422.12, and 422.12B.
2 22 Sec. 3. NEW SECTION. 422F.2 IMPOSITION BY SCHOOL
2 23 DISTRICT.
2 24 1. A local income surtax for school infrastructure
2 25 purposes shall be imposed by a school district only after an
2 26 election at which a majority of those voting on the question
2 27 favors imposition.
2 28 2. a. The question of imposition of the income surtax may
2 29 be submitted upon motion passed by the board of directors of
2 30 the school district.
2 31 b. Alternatively, upon receipt by a board of directors of
2 32 a petition requesting imposition of a local income surtax for
2 33 infrastructure purposes, signed by eligible electors of the
2 34 school district equal in number to five percent of the persons
2 35 in the school district who voted at the last preceding state
3 1 general election, the board shall within thirty days direct
3 2 the county commissioner of elections to submit the question of
3 3 imposition of the income surtax to the registered voters of
3 4 the school district.
3 5 3. The county commissioner of elections shall submit the
3 6 question of imposition of a local income surtax for school
3 7 infrastructure purposes at a state general election or at a
3 8 special election held at any time other than the time of a
3 9 city regular election. The election shall not be held sooner
3 10 than sixty days after publication of notice of the ballot
3 11 proposition. The ballot proposition shall specify the rate of
3 12 tax, the date the tax will be imposed and repealed, and shall
3 13 contain a statement as to the specific purpose or purposes for
3 14 which the revenues shall be expended. The dates for the
3 15 imposition and repeal of the tax shall be as provided in
3 16 section 422F.1, subsection 3. The rate of tax shall not be
3 17 more than authorized pursuant to section 422F.1, subsection 2.
3 18 The state commissioner of elections shall establish by rule
3 19 the form for the ballot proposition which form shall be
3 20 uniform throughout the state.
3 21 4. At the expiration of the period for which the income
3 22 surtax was adopted, the income surtax may be extended for a
3 23 period of ten years in the manner provided in subsections 2
3 24 and 3.
3 25 Sec. 4. NEW SECTION. 422F.3 STATUTES APPLICABLE.
3 26 The director of revenue shall administer the income surtax
3 27 imposed under this chapter, and sections 422.20, 422.22 to
3 28 422.31, 422.68, and 422.72 to 422.75 shall apply with respect
3 29 to administration of the income surtax.
3 30 Sec. 5. NEW SECTION. 422F.4 FORM AND TIME OF RETURN.
3 31 The income surtax shall be made a part of the Iowa
3 32 individual income tax return subject to the conditions and
3 33 restrictions set forth in section 422.21.
3 34 Sec. 6. NEW SECTION. 422F.5 DEPOSIT OF INCOME SURTAX.
3 35 1. The director of revenue shall deposit all moneys
4 1 received as income surtax to the credit of each district from
4 2 which the moneys are received, in the school district income
4 3 surtax fund which is established in section 298.14.
4 4 2. The director of revenue shall deposit income surtax
4 5 moneys received on or before November 1 of the year following
4 6 the close of the school budget year for which the surtax is
4 7 imposed to the credit of each district from which the moneys
4 8 are received in the school district income surtax fund.
4 9 3. Income surtax moneys received or refunded after
4 10 November 1 of the year following the close of the school
4 11 budget year for which the surtax is imposed shall be deposited
4 12 in or withdrawn from the general fund of the state and shall
4 13 be considered part of the cost of administering the income
4 14 surtax.
4 15 Sec. 7. NEW SECTION. 422F.6 INCOME SURTAX CERTIFICATION.
4 16 1. On or before October 20 each year, the director of
4 17 revenue shall make an accounting of the income surtax
4 18 collected under this chapter applicable to tax returns for the
4 19 last preceding calendar year, or for a taxpayer's fiscal year
4 20 ending during the second half of that calendar year and after
4 21 the date of the favorable election, or the first half of the
4 22 succeeding calendar year, from taxpayers in each school
4 23 district in the state which has approved the income surtax for
4 24 school infrastructure purposes, and shall certify to the
4 25 department of management and the department of education the
4 26 amount of total income surtax credited from the taxpayers of
4 27 each school district.
4 28 2. The director of the department of administrative
4 29 services shall draw warrants in payment of the amount of the
4 30 income surtax in the manner provided in section 298.14.
4 31 Sec. 8. NEW SECTION. 422F.8 BONDING.
4 32 The board of directors of a school district is authorized
4 33 to issue negotiable, interest=bearing school bonds, without
4 34 election, and utilize tax receipts derived from the local
4 35 income surtax for school infrastructure purposes for principal
5 1 and interest repayment. Proceeds of the bonds issued pursuant
5 2 to this section shall be utilized solely for school
5 3 infrastructure needs as school infrastructure is defined in
5 4 section 422F.1, subsection 4. Bonds issued under this section
5 5 may be sold at public or private sale as provided in chapter
5 6 75 without notice and hearing as provided in section 73A.l2.
5 7 Bonds may bear dates, bear interest at rates not exceeding
5 8 that permitted by chapter 74A, mature in one or more
5 9 installments, be in registered form, carry registration and
5 10 conversion privileges, be payable as to principal and interest
5 11 at times and places, be subject to terms of redemption prior
5 12 to maturity with or without premium, and be in one or more
5 13 denominations, all as provided by the resolution of the board
5 14 of directors authorizing their issuance. The resolution may
5 15 also prescribe additional provisions, terms, conditions, and
5 16 covenants which the board of directors deems advisable,
5 17 including provisions for creating and maintaining reserve
5 18 funds, the issuance of additional bonds ranking on a parity
5 19 with such bonds and additional bonds junior and subordinate to
5 20 such bonds, and that such bonds shall rank on a parity with or
5 21 be junior and subordinate to any bonds which may be then
5 22 outstanding. Bonds may be issued to refund outstanding and
5 23 previously issued bonds under this section. Local income
5 24 surtax revenue bonds are a contract between the school
5 25 district and holders, and the resolution issuing the bonds and
5 26 pledging local income surtax revenues to the payment of
5 27 principal and interest on the bonds is a part of the contract.
5 28 Bonds issued pursuant to this section shall not constitute
5 29 indebtedness within the meaning of any constitutional or
5 30 statutory debt limitation or restriction, and shall not be
5 31 subject to any other law relating to the authorization,
5 32 issuance, or sale of bonds.
5 33 EXPLANATION
5 34 This bill authorizes a school district to impose a local
5 35 income surtax for school infrastructure purposes. The surtax
6 1 may only be imposed after an election at which a majority
6 2 voting on the question favors the imposition. The school
6 3 district board of directors may call the election or the
6 4 election may be requested by petition of the residents of the
6 5 school district. The surtax would be imposed for 10 years and
6 6 at a rate set by the board of directors which rate, plus any
6 7 other school district income surtaxes and the emergency
6 8 medical services income surtax, shall not exceed 20 percent.
6 9 Revenues from the income surtax are to be used for school
6 10 infrastructure purposes which include construction,
6 11 reconstruction, repair, demolition work, purchasing, or
6 12 remodeling of schoolhouses, stadiums, gyms, fieldhouses, and
6 13 bus garages and for the procurement of schoolhouse
6 14 construction sites and for site improvements. The revenues
6 15 may also be used to pay for bonds issued for school
6 16 infrastructure purposes. The definition of school
6 17 infrastructure purposes is the same as that for which the
6 18 local option sales and use tax revenues may be used under Code
6 19 chapter 423E.
6 20 LSB 2490YH 81
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