Senate File 307 - Introduced SENATE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 83) (COMPANION TO HF 39 BY VAN FOSSEN) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act allocating franchise tax revenues to local jurisdictions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1749SV 82 4 mg/es/88 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 1749SV 82 2 12 mg:rj/es/88