House File 195 - IntroducedA Bill ForAn Act 1extending the period of time for collecting sales tax
2for deposit in the secure an advanced vision for education
1   Section 1.  Section 423.2, subsection 12, Code 2019, is
2amended to read as follows:
   312.  The sales tax rate of six percent is reduced to five
4percent on January 1, 2030 2050.
5   Sec. 2.  Section 423.2A, subsection 2, paragraph c, Code
62019, is amended to read as follows:
   7c.  Transfer one-sixth of the remaining revenues to the
8secure an advanced vision for education fund created in section
9423F.2. This paragraph “c” is repealed December 31, 2029
 January 1, 2050.
11   Sec. 3.  Section 423.5, subsection 4, Code 2019, is amended
12to read as follows:
   134.  The use tax rate of six percent is reduced to five
14percent on January 1, 2030 2050.
15   Sec. 4.  Section 423.43, subsection 1, paragraph b, Code
162019, is amended to read as follows:
   17b.  Subsequent to the deposit into the general fund of
18the state and after the transfer of such revenues collected
19under chapter 423B, the department shall transfer one-sixth of
20such remaining revenues to the secure an advanced vision for
21education fund created in section 423F.2. This paragraph is
22repealed December 31, 2029 January 1, 2050.
23   Sec. 5.  Section 423F.6, Code 2019, is amended to read as
   25423F.6  Repeal.
   26This chapter is repealed December 31, 2029 January 1, 2050.
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
   30 Code section 423.2 imposes a state tax of 6 percent upon
31the sales price of all sales of tangible personal property,
32consisting of goods, wares, merchandise, and other items
33designated by statute, sold at retail in the state to consumers
34or users, except as otherwise provided by Code chapter 423.
35Generally, by operation of law, a sale subject to the sales
-1-1tax is also subject to the use tax. Following the transfer
2of amounts required by statute, if applicable, one-sixth of
3the remaining state sales tax revenue from the 6 percent tax
4is transferred to the secure an advanced vision for education
5(SAVE) fund created in Code section 423F.2. Moneys in the SAVE
6fund are allocated to school districts on a per pupil basis to
7be used for infrastructure and property tax reduction purposes
8specified in Code chapter 423F. Under current law, the sales
9tax rate of 6 percent is reduced to 5 percent on January 1,
102030, and Code chapter 423F, along with other corresponding
11provisions, is repealed December 31, 2029.
   12 This bill extends the 6 percent sales tax rate, the
13allocation to the SAVE fund, and the statutory repeal of Code
14chapter 423F until January 1, 2050.