House File 2089 - 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 local property tax funding for community
  2    colleges.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5159YH 82
  5 kh/rj/14

PAG LIN



  1  1    Section 1.  Section 260C.17, Code 2007, is amended to read
  1  2 as follows:
  1  3    260C.17  PREPARATION AND APPROVAL OF BUDGET == TAX
  1  4 OPERATIONS LEVIES.
  1  5    1.  BUDGET APPROVAL.  The board of directors of each merged
  1  6 area shall prepare an annual budget designating the proposed
  1  7 expenditures for operation of the community college.  The
  1  8 board shall further designate the amounts which are to be
  1  9 raised by local taxation and the amounts which are to be
  1 10 raised by other sources of revenue for the operation.  The
  1 11 budget of each merged area shall be submitted to the state
  1 12 board no later than May 1 preceding the next fiscal year for
  1 13 approval.  The state board shall review the proposed budget
  1 14 and shall, prior to June 1, either grant its approval or
  1 15 return the budget without approval with the comments of the
  1 16 state board attached to it.  Any unapproved budget shall be
  1 17 resubmitted to the state board for final approval.
  1 18    2.  BASE LEVEL.  Upon approval of the budget by the state
  1 19 board, the board of directors shall certify the amount to the
  1 20 respective county auditors and the boards of supervisors
  1 21 annually shall levy a tax of twenty and one=fourth cents per
  1 22 thousand dollars of assessed value on taxable property in a
  1 23 merged area for the operation of a community college.
  1 24    3.  OPTIONAL SUPPLEMENTAL AMOUNT.  In its determination of
  1 25 the amount to be raised by local taxation for operation of the
  1 26 community college, the board of directors may annually certify
  1 27 an amount for levy at a rate in excess of twenty and
  1 28 one=fourth cents on taxable property in the merged area.
  1 29 However, the sum of all local property taxation for a
  1 30 community college and the revenue received by the community
  1 31 college as general state financial aid shall not exceed an
  1 32 amount equal to seventy=five percent of the community
  1 33 college's budget for the next fiscal year.
  1 34    4.  TAXES COLLECTED.  Taxes collected pursuant to the levy
  1 35 levies shall be paid by the respective county treasurers to
  2  1 the treasurer of the merged area as provided in section
  2  2 331.552, subsection 29.
  2  3    It is the policy of this state that the property tax for
  2  4 the operation of community colleges shall not in any event
  2  5 exceed twenty and one=fourth cents per thousand dollars of
  2  6 assessed value, and that the present and future costs of such
  2  7 operation in excess of the funds raised by such levy shall be
  2  8 the responsibility of the state and shall not be paid from
  2  9 property tax.
  2 10                           EXPLANATION
  2 11    This bill permits a community college to annually levy
  2 12 additional local property tax dollars for its operation.
  2 13 Current law limits property tax for the operation of community
  2 14 colleges to not more than 20 and one=fourth cents per $1,000
  2 15 of assessed value, with the state responsible for the
  2 16 remainder.  The bill provides that the sum of all local
  2 17 property tax for the community college and the general state
  2 18 financial aid allocated by the general assembly shall not
  2 19 exceed an amount equal to 75 percent of the budget submitted
  2 20 by the board of directors of the community college.
  2 21 LSB 5159YH 82
  2 22 kh/rj/14