House File 2050 - Introduced HOUSE FILE 2050 BY SALMON A BILL FOR An Act relating to the rate of and authority to impose school 1 district regular and voter-approved physical plant and 2 equipment levies for certain school budget years. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5049YH (2) 88 md/jh

H.F. 2050 Section 1. Section 298.2, subsection 1, paragraph a, Code 1 2020, is amended to read as follows: 2 a. A physical plant and equipment levy of not exceeding one 3 dollar and sixty-seven cents per thousand dollars of assessed 4 valuation in the district is established except as otherwise 5 provided in this subsection . 6 (1) The For school budget years beginning before July 1, 7 2021, and for school budget years beginning on or after the 8 date specified in section 423.2, subsection 12, the physical 9 plant and equipment levy consists of the regular physical 10 plant and equipment levy of not exceeding thirty-three cents 11 per thousand dollars of assessed valuation in the district 12 and a voter-approved physical plant and equipment levy of 13 not exceeding one dollar and thirty-four cents per thousand 14 dollars of assessed valuation in the district. However, the 15 voter-approved physical plant and equipment levy may consist 16 of a combination of a physical plant and equipment property 17 tax levy and a physical plant and equipment income surtax as 18 provided in subsection 4 with the maximum amount levied and 19 imposed limited to an amount that could be raised by a one 20 dollar and thirty-four cent property tax levy. 21 (2) For school budget years beginning on or after July 22 1, 2021, but before the date specified in section 423.2, 23 subsection 12, the physical plant and equipment levy shall only 24 consist of the voter-approved physical plant and equipment levy 25 of not exceeding one dollar and sixty-seven cents per thousand 26 dollars of assessed valuation in the district. However, the 27 voter-approved physical plant and equipment levy may consist 28 of a combination of a physical plant and equipment property 29 tax levy and a physical plant and equipment income surtax as 30 provided in subsection 4 with the maximum amount levied and 31 imposed limited to an amount that could be raised by a one 32 dollar and sixty-seven cent property tax levy. 33 Sec. 2. Section 298.2, subsection 2, Code 2020, is amended 34 by striking the subsection. 35 -1- LSB 5049YH (2) 88 md/jh 1/ 3

H.F. 2050 Sec. 3. Section 298.2, subsection 3, Code 2020, is amended 1 to read as follows: 2 3. The Subject to the school budget year limitations of 3 subsection 1, paragraph “a” , the board of directors of a school 4 district may certify for levy by April 15 of a school year a tax 5 on all taxable property in the school district for the regular 6 physical plant and equipment levy. 7 Sec. 4. Section 298.2, Code 2020, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 6. For a voter-approved physical plant 10 and equipment levy approved at election before July 1, 2020, 11 and imposed for a school budget year beginning on or after 12 July 1, 2021, but before the date specified in section 423.2, 13 subsection 12, the rate of such levy shall not exceed one 14 dollar and thirty-four cents per thousand dollars of assessed 15 valuation in the district unless the voters approve the rate 16 authorized under subsection 1, paragraph “a” , subparagraph (2), 17 in the manner provided under subsection 4 at an election held 18 on or after July 1, 2020. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 Code section 298.2 authorizes a school district physical 23 plant and equipment levy of not exceeding $1.67 per $1,000 24 of assessed valuation in the school district. Such levy is 25 allowed to consist of the regular physical plant and equipment 26 levy of not exceeding 33 cents per $1,000 of assessed valuation 27 and a voter-approved physical plant and equipment levy of not 28 exceeding $1.34 per $1,000 of assessed valuation. However, the 29 voter-approved physical plant and equipment levy may consist of 30 a combination of a physical plant and equipment property tax 31 levy and a physical plant and equipment income surtax. 32 This bill prohibits the regular physical plant and equipment 33 levy for school budget years beginning on or after July 1, 34 2021, but before the date under current law on which the state 35 -2- LSB 5049YH (2) 88 md/jh 2/ 3

H.F. 2050 sales tax rate is reduced to 5 percent (January 1, 2051, 1 under current law), and specifies that the physical plant 2 and equipment levy shall only consist of the voter-approved 3 physical plant and equipment levy of not exceeding $1.67 per 4 $1,000 of assessed valuation. 5 Under the bill, for a voter-approved physical plant and 6 equipment levy approved at election before July 1, 2020, and 7 imposed for a school budget year beginning on or after July 1, 8 2021, but before the date under current law on which the state 9 sales tax rate is reduced to 5 percent, the rate of such levy 10 shall not exceed $1.34 per $1,000 of assessed valuation unless 11 the voters approve the $1.67 rate authorized in the bill at an 12 election held on or after July 1, 2020. 13 -3- LSB 5049YH (2) 88 md/jh 3/ 3