SF 409 (LSB 2369SV (1) 86)

SENATE FILE 409

BY  COMMITTEE ON EDUCATION

(SUCCESSOR TO SF 255)

A BILL FOR

An Act extending the period of time for collecting sales tax for deposit in the secure an advanced vision for education fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.2, subsection 11, paragraph b, subparagraph (3), Code 2015, is amended to read as follows:
   (3)  Transfer one-sixth of the remaining revenues to the secure an advanced vision for education fund created in section 423F.2. This subparagraph (3) is repealed December 31, 2029 effective January 1, 2050.
    Sec. 2.  Section 423.2, subsection 13, Code 2015, is amended to read as follows:
   13.  The sales tax rate of six percent is immediately reduced to five percent following repeal of chapter 423F, section 423.3, subsection 11, paragraph “b”, and section 423.43, subsection 1, paragraph “b”, on January 1, 2030 2050.
    Sec. 3.  Section 423.5, subsection 5, Code 2015, is amended to read as follows:
   5.  The use tax rate of six percent is immediately reduced to five percent following the repeal of chapter 423F, section 423.3, subsection 11, paragraph “b”, and section 423.43, subsection 1, paragraph “b”, on January 1, 2030 2050.
    Sec. 4.  Section 423.43, subsection 1, paragraph b, Code 2015, is amended to read as follows:
   b.  Subsequent to the deposit into the general fund of the state and after the transfer of such revenues collected under chapter 423B, the department shall transfer one-sixth of such remaining revenues to the secure an advanced vision for education fund created in section 423F.2. This paragraph is repealed December 31, 2029 effective January 1, 2050.
    Sec. 5.  Section 423F.6, Code 2015, is amended to read as follows:
   423F.6  Repeal.

   This chapter is repealed December 31, 2029 effective January 1, 2050.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Code section 423.2 imposes a state tax of 6 percent upon the sales price of all sales of tangible personal property, consisting of goods, wares, merchandise, and other items designated by statute, sold at retail in the state to consumers, except as otherwise provided by Code chapter 423. Generally, by operation of law, a sale subject to the sales tax is also subject to the use tax. Following the transfer of amounts required for the natural resources and outdoor recreation trust fund, one-sixth of the remaining state sales tax revenue from the 6 percent tax is transferred to the secure an advanced vision for education (SAVE) fund created in Code section 423F.2. Moneys in the SAVE fund are allocated to school districts on a per pupil basis to be used for infrastructure and property tax reduction purposes specified in Code chapter 423F. Under current law, the sales tax rate of 6 percent is reduced to 5 percent on January 1, 2030, and Code chapter 423F, along with other corresponding provisions, is repealed December 31, 2029.
   This bill extends the 6 percent sales tax rate, the allocation to the SAVE fund, and the statutory repeal of Code chapter 423F until January 1, 2050.