Bill Text: IA HF188 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act extending the period of time for collecting sales tax for deposit in the secure an advanced vision for education fund.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Introduced - Dead) 2017-02-01 - Introduced, referred to Education. H.J. 172. [HF188 Detail]
Download: Iowa-2017-HF188-Introduced.html
House File 188 - Introduced HOUSE FILE BY STECKMAN, KRESSIG, MASCHER, HANSON, GASKILL, THEDE, HUNTER, NIELSEN, LENSING, WINCKLER, ISENHART, WOLFE, FORBES, M. SMITH, BEARINGER, and OURTH (COMPANION TO SF 9 BY QUIRMBACH) A BILL FOR 1 An Act extending the period of time for collecting sales tax 2 for deposit in the secure an advanced vision for education 3 fund. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1516HH (5) 87 md/sc PAG LIN 1 1 Section 1. Section 423.2, subsection 11, paragraph b, 1 2 subparagraph (3), Code 2017, is amended to read as follows: 1 3 (3) Transfer one=sixth of the remaining revenues to the 1 4 secure an advanced vision for education fund created in section 1 5 423F.2. This subparagraph (3) is repealedDecember 31, 2029 1 6effective January 1, 2050. 1 7 Sec. 2. Section 423.2, subsection 14, Code 2017, is amended 1 8 to read as follows: 1 9 14. The sales tax rate of six percent is reduced to five 1 10 percent on January 1,20302050. 1 11 Sec. 3. Section 423.5, subsection 5, Code 2017, is amended 1 12 to read as follows: 1 13 5. The use tax rate of six percent is reduced to five 1 14 percent on January 1,20302050. 1 15 Sec. 4. Section 423.43, subsection 1, paragraph b, Code 1 16 2017, is amended to read as follows: 1 17 b. Subsequent to the deposit into the general fund of 1 18 the state and after the transfer of such revenues collected 1 19 under chapter 423B, the department shall transfer one=sixth of 1 20 such remaining revenues to the secure an advanced vision for 1 21 education fund created in section 423F.2. This paragraph is 1 22 repealedDecember 31, 2029effective January 1, 2050. 1 23 Sec. 5. Section 423F.6, Code 2017, is amended to read as 1 24 follows: 1 25 423F.6 Repeal. 1 26 This chapter is repealedDecember 31, 2029effective January 1 27 1, 2050. 1 28 EXPLANATION 1 29 The inclusion of this explanation does not constitute agreement with 1 30 the explanation's substance by the members of the general assembly. 1 31 Code section 423.2 imposes a state tax of 6 percent upon 1 32 the sales price of all sales of tangible personal property, 1 33 consisting of goods, wares, merchandise, and other items 1 34 designated by statute, sold at retail in the state to 1 35 consumers, except as otherwise provided by Code chapter 423. 2 1 Generally, by operation of law, a sale subject to the sales 2 2 tax is also subject to the use tax. Following the transfer 2 3 of amounts required by statute, if applicable, one=sixth of 2 4 the remaining state sales tax revenue from the 6 percent tax 2 5 is transferred to the secure an advanced vision for education 2 6 (SAVE) fund created in Code section 423F.2. Moneys in the SAVE 2 7 fund are allocated to school districts on a per pupil basis to 2 8 be used for infrastructure and property tax reduction purposes 2 9 specified in Code chapter 423F. Under current law, the sales 2 10 tax rate of 6 percent is reduced to 5 percent on January 1, 2 11 2030, and Code chapter 423F, along with other corresponding 2 12 provisions, is repealed December 31, 2029. 2 13 This bill extends the 6 percent sales tax rate, the 2 14 allocation to the SAVE fund, and the statutory repeal of Code 2 15 chapter 423F until January 1, 2050. LSB 1516HH (5) 87 md/sc