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House File 196 - IntroducedA Bill ForAn Act 1striking certain statutory repeal provisions relating
2to the state sales and use tax and the secure an advanced
3vision for education fund.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.2, subsection 12, Code 2019, is
2amended by striking the subsection.
3 Sec. 2. Section 423.2A, subsection 2, paragraph c, Code
42019, is amended to read as follows:
5c. Transfer one-sixth of the remaining revenues to the
6secure an advanced vision for education fund created in section
7423F.2. This paragraph “c” is repealed December 31, 2029.
8 Sec. 3. Section 423.5, subsection 4, Code 2019, is amended
9by striking the subsection.
10 Sec. 4. Section 423.43, subsection 1, paragraph b, Code
112019, is amended to read as follows:
12b. Subsequent to the deposit into the general fund of
13the state and after the transfer of such revenues collected
14under chapter 423B, the department shall transfer one-sixth of
15such remaining revenues to the secure an advanced vision for
16education fund created in section 423F.2. This paragraph is
17repealed December 31, 2029.
18 Sec. 5. REPEAL. Section 423F.6, Code 2019, is repealed.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22Code section 423.2 imposes a state tax of 6 percent upon
23the sales price of all sales of tangible personal property,
24consisting of goods, wares, merchandise, and other items
25designated by statute, sold at retail in the state to consumers
26or users, except as otherwise provided by Code chapter 423.
27Generally, by operation of law, a sale subject to the sales
28tax is also subject to the use tax. Following the transfer
29of amounts required by statute, if applicable, one-sixth of
30the remaining state sales tax revenue from the 6 percent tax
31is transferred to the secure an advanced vision for education
32(SAVE) fund created in Code section 423F.2. Moneys in the SAVE
33fund are allocated to school districts on a per pupil basis to
34be used for infrastructure and property tax reduction purposes
35specified in Code chapter 423F. Under current law, the sales
-1-1tax rate of 6 percent is reduced to 5 percent on January 1,
22030, and Code chapter 423F, along with other corresponding
3provisions, is repealed December 31, 2029.
4This bill repeals Code section 423F.6, which currently
5provides for the repeal of Code chapter 423F on December 31,
62029. The bill also strikes corresponding repeal provisions
7relating to the allocation of sales tax revenue and provisions
8that reduce the state sales and use tax rate from 6 percent to 5
9percent beginning January 1, 2030.
-2-md/jh
2to the state sales and use tax and the secure an advanced
3vision for education fund.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.2, subsection 12, Code 2019, is
2amended by striking the subsection.
3 Sec. 2. Section 423.2A, subsection 2, paragraph c, Code
42019, is amended to read as follows:
5c. Transfer one-sixth of the remaining revenues to the
6secure an advanced vision for education fund created in section
7423F.2. This paragraph “c” is repealed December 31, 2029.
8 Sec. 3. Section 423.5, subsection 4, Code 2019, is amended
9by striking the subsection.
10 Sec. 4. Section 423.43, subsection 1, paragraph b, Code
112019, is amended to read as follows:
12b. Subsequent to the deposit into the general fund of
13the state and after the transfer of such revenues collected
14under chapter 423B, the department shall transfer one-sixth of
15such remaining revenues to the secure an advanced vision for
16education fund created in section 423F.2. This paragraph is
17repealed December 31, 2029.
18 Sec. 5. REPEAL. Section 423F.6, Code 2019, is repealed.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22Code section 423.2 imposes a state tax of 6 percent upon
23the sales price of all sales of tangible personal property,
24consisting of goods, wares, merchandise, and other items
25designated by statute, sold at retail in the state to consumers
26or users, except as otherwise provided by Code chapter 423.
27Generally, by operation of law, a sale subject to the sales
28tax is also subject to the use tax. Following the transfer
29of amounts required by statute, if applicable, one-sixth of
30the remaining state sales tax revenue from the 6 percent tax
31is transferred to the secure an advanced vision for education
32(SAVE) fund created in Code section 423F.2. Moneys in the SAVE
33fund are allocated to school districts on a per pupil basis to
34be used for infrastructure and property tax reduction purposes
35specified in Code chapter 423F. Under current law, the sales
-1-1tax rate of 6 percent is reduced to 5 percent on January 1,
22030, and Code chapter 423F, along with other corresponding
3provisions, is repealed December 31, 2029.
4This bill repeals Code section 423F.6, which currently
5provides for the repeal of Code chapter 423F on December 31,
62029. The bill also strikes corresponding repeal provisions
7relating to the allocation of sales tax revenue and provisions
8that reduce the state sales and use tax rate from 6 percent to 5
9percent beginning January 1, 2030.
-2-md/jh