House File 546 - Introduced
HOUSE FILE
BY WISE
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for the repeal of specified school finance=
2 related levies, and providing effective dates.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2173HH 81
5 rn/sh/8
PAG LIN
1 1 Section 1. Section 257.28, Code 2005, is amended by adding
1 2 the following new unnumbered paragraph:
1 3 NEW UNNUMBERED PARAGRAPH. This section is repealed July 1,
1 4 2006, and the additional enrichment amount shall not be
1 5 available for school districts for budget years beginning on
1 6 or after July 1, 2006.
1 7 Sec. 2. Section 257.29, Code 2005, is amended by adding
1 8 the following new unnumbered paragraph:
1 9 NEW UNNUMBERED PARAGRAPH. This section is repealed July 1,
1 10 2006, and the additional funding provided by an educational
1 11 improvement program shall not be available for school
1 12 districts for budget years beginning on or after July 1, 2006.
1 13 Sec. 3. Section 298.14, unnumbered paragraphs 1 and 2,
1 14 Code 2005, are amended to read as follows:
1 15 For each fiscal year, the cumulative total of the percents
1 16 of surtax approved by the board of directors of a school
1 17 district and collected by the department of revenue under
1 18 sections 257.21, 257.29, and 298.2, and the enrichment surtax
1 19 under section 442.15, Code 1989, and an income surtax
1 20 collected by a political subdivision under chapter 422D, shall
1 21 not exceed twenty percent.
1 22 A school district income surtax fund is created in the
1 23 office of treasurer of state. Income surtaxes collected by
1 24 the department of revenue under sections 257.21, 257.29, and
1 25 298.2 and section 442.15, Code 1989, shall be deposited in the
1 26 school district income surtax fund to the credit of each
1 27 school district. A separate accounting of each surtax, by
1 28 school district, shall be maintained.
1 29 Sec. 4. Section 298A.5, Code 2005, is amended by adding
1 30 the following new unnumbered paragraph:
1 31 NEW UNNUMBERED PARAGRAPH. This section is repealed July 1,
1 32 2006, and the additional funding provided by a schoolhouse tax
1 33 levy shall not be available for school districts for budget
1 34 years beginning on or after July 1, 2006.
1 35 Sec. 5. Section 257.33, Code 2005, is repealed.
2 1 Sec. 6. EFFECTIVE DATES.
2 2 1. Sections 1, 2, and 4 of this Act, being deemed of
2 3 immediate importance, take effect upon enactment.
2 4 2. Sections 3 and 5 of this Act take effect July 1, 2006.
2 5 EXPLANATION
2 6 This bill provides for the future repeal of three school
2 7 finance levies which are imposed in a relatively few number of
2 8 school districts, and makes conforming changes.
2 9 The bill provides for the repeal of the enrichment levy
2 10 provided in Code section 257.28. The enrichment levy is
2 11 considered a "grandfathered" levy in that it is no longer
2 12 available, but may continue until expiration in school
2 13 districts already utilizing the levy.
2 14 The bill also provides for the repeal of the educational
2 15 improvement levy provided in Code section 257.29. Currently,
2 16 the educational improvement levy may be utilized in a school
2 17 district that has approved participation in the instructional
2 18 support program if the district has a regular program district
2 19 cost per pupil exceeding 110 percent of the regular program
2 20 state cost per pupil.
2 21 The bill additionally provides for the repeal of the
2 22 schoolhouse tax levy provided in Code section 298A.5. The
2 23 schoolhouse tax levy is another "grandfathered" levy, utilized
2 24 prior to the establishment of the physical plant and equipment
2 25 levy, authorizing a levy for capital expenditure=related
2 26 improvements.
2 27 The bill repeals each of the levies effective July 1, 2006,
2 28 and the applicable sections take effect upon enactment.
2 29 Certain conforming changes take effect July 1, 2006.
2 30 LSB 2173HH 81
2 31 rn:nh/sh/8