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House File 119 - IntroducedA Bill ForAn Act 1relating to the calculation and allocation of adjusted
2additional property tax levy aid for school districts and
3including applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 257.4, subsection 1, paragraph b, Code
22019, is amended to read as follows:
3b. For the budget year beginning July 1, 2008, and
4succeeding budget years, the department of management shall
5annually determine an adjusted additional property tax levy
6and a statewide maximum adjusted additional property tax levy
7rate, not to exceed the statewide average additional property
8tax levy rate, calculated by dividing the total adjusted
9additional property tax levy dollars statewide by the statewide
10total net taxable valuation that is not less than the lowest
11adjusted additional property tax levy rate among all school
12districts in the state. For purposes of this paragraph, the
13adjusted additional property tax levy shall be that portion of
14the additional property tax levy corresponding to the state
15cost per pupil multiplied by a school district’s weighted
16enrollment, and then multiplied by one hundred percent less the
17regular program foundation base per pupil percentage pursuant
18to section 257.1, and then reduced by the amount of the
19property tax replacement payment to be received under section
20257.16B. The district shall receive adjusted additional
21property tax levy aid in an amount equal to the difference
22between the adjusted additional property tax levy rate and
23the statewide maximum adjusted additional property tax levy
24rate, as applied per thousand dollars of assessed valuation on
25all taxable property in the district. The statewide maximum
26adjusted additional property tax levy rate shall be annually
27determined by the department taking into account amounts
28allocated pursuant to section 257.15, subsection 4, and the
29balance of the property tax equity and relief fund created in
30section 257.16A at the end of the calendar year.
31 Sec. 2. APPLICABILITY. This Act applies July 1, 2020, for
32school budget years beginning on or after that date.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1Annually, $24 million and the balance of the property tax
2equity and relief fund are appropriated to provide adjusted
3additional property tax levy aid to school districts in an
4amount equal to the difference between the adjusted additional
5property tax levy rate and the statewide maximum adjusted
6additional property tax levy rate, as calculated by the
7department of management. Current law provides that the
8statewide maximum adjusted additional property tax levy rate
9is calculated using the amounts appropriated, but not to
10exceed the statewide average additional property tax levy rate
11calculated by dividing the total adjusted additional property
12tax levy dollars statewide by the statewide total net taxable
13valuation. This bill provides that the statewide maximum
14adjusted additional property tax levy rate, as calculated by
15the department of management, shall instead not be less than
16the lowest adjusted additional property tax levy rate among all
17school districts in the state. Accordingly, the bill allows
18for lowering all school district adjusted additional property
19tax levy rates to the lowest adjusted additional property tax
20levy rate among all school districts in the state if sufficient
21funding is appropriated.
22The bill applies July 1, 2020, for school budget years
23beginning on or after that date.
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2additional property tax levy aid for school districts and
3including applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 257.4, subsection 1, paragraph b, Code
22019, is amended to read as follows:
3b. For the budget year beginning July 1, 2008, and
4succeeding budget years, the department of management shall
5annually determine an adjusted additional property tax levy
6and a statewide maximum adjusted additional property tax levy
7rate, not to exceed the statewide average additional property
8tax levy rate, calculated by dividing the total adjusted
9additional property tax levy dollars statewide by the statewide
10total net taxable valuation that is not less than the lowest
11adjusted additional property tax levy rate among all school
12districts in the state. For purposes of this paragraph, the
13adjusted additional property tax levy shall be that portion of
14the additional property tax levy corresponding to the state
15cost per pupil multiplied by a school district’s weighted
16enrollment, and then multiplied by one hundred percent less the
17regular program foundation base per pupil percentage pursuant
18to section 257.1, and then reduced by the amount of the
19property tax replacement payment to be received under section
20257.16B. The district shall receive adjusted additional
21property tax levy aid in an amount equal to the difference
22between the adjusted additional property tax levy rate and
23the statewide maximum adjusted additional property tax levy
24rate, as applied per thousand dollars of assessed valuation on
25all taxable property in the district. The statewide maximum
26adjusted additional property tax levy rate shall be annually
27determined by the department taking into account amounts
28allocated pursuant to section 257.15, subsection 4, and the
29balance of the property tax equity and relief fund created in
30section 257.16A at the end of the calendar year.
31 Sec. 2. APPLICABILITY. This Act applies July 1, 2020, for
32school budget years beginning on or after that date.
33EXPLANATION
34The inclusion of this explanation does not constitute agreement with
35the explanation’s substance by the members of the general assembly.
-1- 1Annually, $24 million and the balance of the property tax
2equity and relief fund are appropriated to provide adjusted
3additional property tax levy aid to school districts in an
4amount equal to the difference between the adjusted additional
5property tax levy rate and the statewide maximum adjusted
6additional property tax levy rate, as calculated by the
7department of management. Current law provides that the
8statewide maximum adjusted additional property tax levy rate
9is calculated using the amounts appropriated, but not to
10exceed the statewide average additional property tax levy rate
11calculated by dividing the total adjusted additional property
12tax levy dollars statewide by the statewide total net taxable
13valuation. This bill provides that the statewide maximum
14adjusted additional property tax levy rate, as calculated by
15the department of management, shall instead not be less than
16the lowest adjusted additional property tax levy rate among all
17school districts in the state. Accordingly, the bill allows
18for lowering all school district adjusted additional property
19tax levy rates to the lowest adjusted additional property tax
20levy rate among all school districts in the state if sufficient
21funding is appropriated.
22The bill applies July 1, 2020, for school budget years
23beginning on or after that date.
-2-md/jh