House File 2030 - Introduced HOUSE FILE 2030 BY STAED A BILL FOR An Act striking certain statutory repeal provisions relating 1 to the state sales and use tax and the secure an advanced 2 vision for education fund. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5644YH (3) 87 md/jh
H.F. 2030 Section 1. Section 423.2, subsection 11, paragraph b, 1 subparagraph (3), Code 2018, 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 This subparagraph (3) is repealed December 31, 2029. 5 Sec. 2. Section 423.2, subsection 14, Code 2018, is amended 6 by striking the subsection. 7 Sec. 3. Section 423.5, subsection 5, Code 2018, is amended 8 by striking the subsection. 9 Sec. 4. Section 423.43, subsection 1, paragraph b, Code 10 2018, is amended to read as follows: 11 b. Subsequent to the deposit into the general fund of 12 the state and after the transfer of such revenues collected 13 under chapter 423B , the department shall transfer one-sixth of 14 such remaining revenues to the secure an advanced vision for 15 education fund created in section 423F.2 . This paragraph is 16 repealed December 31, 2029. 17 Sec. 5. Section 423F.4, Code 2018, is amended to read as 18 follows: 19 423F.4 Borrowing authority for school districts. 20 A school district may anticipate its share of the revenues 21 under section 423F.2 by issuing bonds in the manner provided in 22 section 423E.5 , Code 2018 . However, to the extent any school 23 district has issued bonds anticipating the proceeds of an 24 extended local sales and services tax for school infrastructure 25 purposes imposed by a county pursuant to former chapter 423E, 26 Code and Code Supplement 2007, prior to July 1, 2008, the 27 pledge of such revenues for the payment of principal and 28 interest on such bonds shall be replaced by a pledge of its 29 share of the revenues under section 423F.2 . 30 Sec. 6. REPEAL. Section 423F.6, Code 2018, is repealed. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 Code section 423.2 imposes a state sales tax of 6 percent 35 -1- LSB 5644YH (3) 87 md/jh 1/ 2
H.F. 2030 upon the sales price of all sales of tangible personal 1 property, consisting of goods, wares, merchandise, and other 2 items designated by statute, sold at retail in the state to 3 consumers, except as otherwise provided by Code chapter 423. 4 Generally, by operation of law, a sale subject to the sales 5 tax is also subject to the use tax. Following the transfer 6 of amounts required by statute, if applicable, one-sixth of 7 the remaining state sales tax revenue from the 6 percent tax 8 is transferred to the secure an advanced vision for education 9 (SAVE) fund created in Code section 423F.2. Moneys in the SAVE 10 fund are allocated to school districts on a per pupil basis to 11 be used for infrastructure and property tax reduction purposes 12 specified in Code chapter 423F. Under current law, the sales 13 and use tax rate of 6 percent is reduced to 5 percent on January 14 1, 2030, and Code chapter 423F, along with other corresponding 15 provisions, is repealed December 31, 2029. 16 This bill repeals Code section 423F.6, which currently 17 provides for the repeal of Code chapter 423F on December 31, 18 2029. The bill also strikes corresponding repeal provisions 19 relating to the allocation of sales tax revenue and provisions 20 that reduce the state sales and use tax rate from 6 percent to 5 21 percent beginning January 1, 2030. 22 The bill also specifies a Code year for a statutory reference 23 in current law relating to the manner in which school districts 24 issued bonds payable from revenues received from the SAVE fund. 25 -2- LSB 5644YH (3) 87 md/jh 2/ 2