House File 188 - Introduced HOUSE FILE 188 BY STECKMAN , KRESSIG , MASCHER , HANSON , GASKILL , THEDE , HUNTER , NIELSEN , LENSING , WINCKLER , ISENHART , WOLFE , FORBES , M. SMITH , BEARINGER , and OURTH (COMPANION TO SF 9 BY QUIRMBACH) A BILL FOR An Act extending the period of time for collecting sales tax 1 for deposit in the secure an advanced vision for education 2 fund. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1516HH (5) 87 md/sc
H.F. 188 Section 1. Section 423.2, subsection 11, paragraph b, 1 subparagraph (3), Code 2017, is amended to read as follows: 2 (3) Transfer one-sixth of the remaining revenues to the 3 secure an advanced vision for education fund created in section 4 423F.2 . This subparagraph (3) is repealed December 31, 2029 5 effective January 1, 2050 . 6 Sec. 2. Section 423.2, subsection 14, Code 2017, is amended 7 to read as follows: 8 14. The sales tax rate of six percent is reduced to five 9 percent on January 1, 2030 2050 . 10 Sec. 3. Section 423.5, subsection 5, Code 2017, is amended 11 to read as follows: 12 5. The use tax rate of six percent is reduced to five 13 percent on January 1, 2030 2050 . 14 Sec. 4. Section 423.43, subsection 1, paragraph b, Code 15 2017, is amended to read as follows: 16 b. Subsequent to the deposit into the general fund of 17 the state and after the transfer of such revenues collected 18 under chapter 423B , the department shall transfer one-sixth of 19 such remaining revenues to the secure an advanced vision for 20 education fund created in section 423F.2 . This paragraph is 21 repealed December 31, 2029 effective January 1, 2050 . 22 Sec. 5. Section 423F.6, Code 2017, is amended to read as 23 follows: 24 423F.6 Repeal. 25 This chapter is repealed December 31, 2029 effective January 26 1, 2050 . 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 Code section 423.2 imposes a state tax of 6 percent upon 31 the sales price of all sales of tangible personal property, 32 consisting of goods, wares, merchandise, and other items 33 designated by statute, sold at retail in the state to 34 consumers, except as otherwise provided by Code chapter 423. 35 -1- LSB 1516HH (5) 87 md/sc 1/ 2
H.F. 188 Generally, by operation of law, a sale subject to the sales 1 tax is also subject to the use tax. Following the transfer 2 of amounts required by statute, if applicable, one-sixth of 3 the remaining state sales tax revenue from the 6 percent tax 4 is transferred to the secure an advanced vision for education 5 (SAVE) fund created in Code section 423F.2. Moneys in the SAVE 6 fund are allocated to school districts on a per pupil basis to 7 be used for infrastructure and property tax reduction purposes 8 specified in Code chapter 423F. Under current law, the sales 9 tax rate of 6 percent is reduced to 5 percent on January 1, 10 2030, and Code chapter 423F, along with other corresponding 11 provisions, is repealed December 31, 2029. 12 This bill extends the 6 percent sales tax rate, the 13 allocation to the SAVE fund, and the statutory repeal of Code 14 chapter 423F until January 1, 2050. 15 -2- LSB 1516HH (5) 87 md/sc 2/ 2