HF 2030 (LSB 5644YH (3) 87)

HOUSE FILE 2030

BY  STAED

A BILL FOR

An Act striking certain statutory repeal provisions relating to the state sales and use tax and 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 2018, 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 This subparagraph (3) is repealed December 31, 2029.
    Sec. 2.  Section 423.2, subsection 14, Code 2018, is amended by striking the subsection.
    Sec. 3.  Section 423.5, subsection 5, Code 2018, is amended by striking the subsection.
    Sec. 4.  Section 423.43, subsection 1, paragraph b, Code 2018, 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 This paragraph is repealed December 31, 2029.
    Sec. 5.  Section 423F.4, Code 2018, is amended to read as follows:
   423F.4  Borrowing authority for school districts.
   A school district may anticipate its share of the revenues under section 423F.2 by issuing bonds in the manner provided in section 423E.5, Code 2018. However, to the extent any school district has issued bonds anticipating the proceeds of an extended local sales and services tax for school infrastructure purposes imposed by a county pursuant to former chapter 423E, Code and Code Supplement 2007, prior to July 1, 2008, the pledge of such revenues for the payment of principal and interest on such bonds shall be replaced by a pledge of its share of the revenues under section 423F.2.
    Sec. 6.  REPEAL.  Section 423F.6, Code 2018, is repealed.
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 sales 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 by statute, if applicable, 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 and use 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 repeals Code section 423F.6, which currently provides for the repeal of Code chapter 423F on December 31, 2029. The bill also strikes corresponding repeal provisions relating to the allocation of sales tax revenue and provisions that reduce the state sales and use tax rate from 6 percent to 5 percent beginning January 1, 2030.
   The bill also specifies a Code year for a statutory reference in current law relating to the manner in which school districts issued bonds payable from revenues received from the SAVE fund.