House File 466 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON LOCAL
                                           GOVERNMENT

                                       (SUCCESSOR TO HF 200)


    Passed House, Date               Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act appropriating revenues from the state franchise tax to
  2    cities and counties.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1534HV 82
  5 mg/sh/8

PAG LIN



  1  1    Section 1.  Section 331.427, subsection 1, unnumbered
  1  2 paragraph 1, Code 2007, is amended to read as follows:
  1  3    Except as otherwise provided by state law, county revenues
  1  4 from taxes and other sources for general county services shall
  1  5 be credited to the general fund of the county, including
  1  6 revenues received under sections 9I.11, 101A.3, 101A.7,
  1  7 123.36, 123.143, 142B.6, 176A.8, 321.105, 321.152, 321G.7,
  1  8 321I.8, section 331.554, subsection 6, sections 341A.20,
  1  9 364.3, 368.21, 422.65, 423A.7, 428A.8, 430A.3, 433.15, 434.19,
  1 10 445.57, 453A.35, 458A.21, 483A.12, 533.24, 556B.1, 583.6,
  1 11 602.8108, 904.908, and 906.17, and the following:
  1 12    Sec. 2.  NEW SECTION.  422.65  ALLOCATION OF REVENUE.
  1 13    All moneys received from the franchise tax shall be
  1 14 deposited in the general fund of the state.  Commencing with
  1 15 the fiscal year beginning July 1, 2007, there is appropriated
  1 16 for each fiscal year from the franchise tax moneys received
  1 17 and deposited in the general fund of the state the sum of
  1 18 eight million eight hundred thousand dollars which shall be
  1 19 paid quarterly on warrants by the director, after
  1 20 certification by the director, as follows:
  1 21    1.  Sixty percent to the general fund of the city from
  1 22 which the tax is collected.
  1 23    2.  Forty percent to the county from which the tax is
  1 24 collected.
  1 25    If the financial institution maintains one or more offices
  1 26 for the transaction of business, other than its principal
  1 27 office, a portion of its franchise tax shall be allocated to
  1 28 each office, based upon a reasonable measure of the business
  1 29 activity of each office.  The director shall prescribe, for
  1 30 each type of financial institution, a method of measuring the
  1 31 business activity of each office.  Financial institutions
  1 32 shall furnish all necessary information for this purpose at
  1 33 the request of the director.
  1 34    Quarterly, the director shall certify to the treasurer of
  1 35 state the amounts to be paid to each city and county from the
  2  1 general fund of the state.  All moneys received from the
  2  2 franchise tax are appropriated according to the provisions of
  2  3 this section.
  2  4                           EXPLANATION
  2  5    This bill reenacts the annual appropriation of $8.8 million
  2  6 of state franchise tax revenues and its allocation to cities
  2  7 and counties.  This annual appropriation and allocation were
  2  8 repealed in 2003 Iowa Acts, chapter 178, section 11.  The
  2  9 annual appropriation and allocation will commence with the
  2 10 fiscal year beginning July 1, 2007.
  2 11 LSB 1534HV 82
  2 12 mg:rj/sh/8