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House File 230 - IntroducedA Bill ForAn Act 1extending the period of time for collecting sales tax
2for deposit in the secure an advanced vision for education
3fund.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.2, subsection 11, paragraph b,
2subparagraph (3), Code 2017, is amended to read as follows:
3(3) Transfer one-sixth of the remaining revenues to the
4secure an advanced vision for education fund created in section
5423F.2. This subparagraph (3) is repealed December 31, 2029
6 effective January 1, 2050.
7 Sec. 2. Section 423.2, subsection 14, Code 2017, is amended
8to read as follows:
914. The sales tax rate of six percent is reduced to five
10percent on January 1, 2030 2050.
11 Sec. 3. Section 423.5, subsection 5, Code 2017, is amended
12to read as follows:
135. 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
162017, 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 effective January 1, 2050.
23 Sec. 5. Section 423F.6, Code 2017, is amended to read as
24follows:
25423F.6 Repeal.
26This chapter is repealed December 31, 2029 effective January
271, 2050.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31Code section 423.2 imposes a state tax of 6 percent upon
32the sales price of all sales of tangible personal property,
33consisting of goods, wares, merchandise, and other items
34designated by statute, sold at retail in the state to
35consumers, except as otherwise provided by Code chapter 423.
-1-1Generally, by operation of law, a sale subject to the sales
2tax is also subject to the use tax. Following the transfer
3of amounts required by statute, if applicable, one-sixth of
4the remaining state sales tax revenue from the 6 percent tax
5is transferred to the secure an advanced vision for education
6(SAVE) fund created in Code section 423F.2. Moneys in the SAVE
7fund are allocated to school districts on a per pupil basis to
8be used for infrastructure and property tax reduction purposes
9specified in Code chapter 423F. Under current law, the sales
10tax rate of 6 percent is reduced to 5 percent on January 1,
112030, and Code chapter 423F, along with other corresponding
12provisions, is repealed December 31, 2029.
13This bill extends the 6 percent sales tax rate, the
14allocation to the SAVE fund, and the statutory repeal of Code
15chapter 423F until January 1, 2050.
-2-md/sc
2for deposit in the secure an advanced vision for education
3fund.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 423.2, subsection 11, paragraph b,
2subparagraph (3), Code 2017, is amended to read as follows:
3(3) Transfer one-sixth of the remaining revenues to the
4secure an advanced vision for education fund created in section
5423F.2. This subparagraph (3) is repealed December 31, 2029
6 effective January 1, 2050.
7 Sec. 2. Section 423.2, subsection 14, Code 2017, is amended
8to read as follows:
914. The sales tax rate of six percent is reduced to five
10percent on January 1, 2030 2050.
11 Sec. 3. Section 423.5, subsection 5, Code 2017, is amended
12to read as follows:
135. 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
162017, 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 effective January 1, 2050.
23 Sec. 5. Section 423F.6, Code 2017, is amended to read as
24follows:
25423F.6 Repeal.
26This chapter is repealed December 31, 2029 effective January
271, 2050.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31Code section 423.2 imposes a state tax of 6 percent upon
32the sales price of all sales of tangible personal property,
33consisting of goods, wares, merchandise, and other items
34designated by statute, sold at retail in the state to
35consumers, except as otherwise provided by Code chapter 423.
-1-1Generally, by operation of law, a sale subject to the sales
2tax is also subject to the use tax. Following the transfer
3of amounts required by statute, if applicable, one-sixth of
4the remaining state sales tax revenue from the 6 percent tax
5is transferred to the secure an advanced vision for education
6(SAVE) fund created in Code section 423F.2. Moneys in the SAVE
7fund are allocated to school districts on a per pupil basis to
8be used for infrastructure and property tax reduction purposes
9specified in Code chapter 423F. Under current law, the sales
10tax rate of 6 percent is reduced to 5 percent on January 1,
112030, and Code chapter 423F, along with other corresponding
12provisions, is repealed December 31, 2029.
13This bill extends the 6 percent sales tax rate, the
14allocation to the SAVE fund, and the statutory repeal of Code
15chapter 423F until January 1, 2050.
-2-md/sc