Bill Text: IA HF2030 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act striking certain statutory repeal provisions relating to the state sales and use tax and the secure an advanced vision for education fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-01-24 - Sponsors added, Gaines, Gaskill, Hunter, Kacena, Kearns, Kurth, Lensing, Nielsen, Ourth, Steckman, Winckler and Wolfe. H.J. 148. [HF2030 Detail]

Download: Iowa-2017-HF2030-Introduced.html

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House File 2030 - Introduced




                                 HOUSE FILE       
                                 BY  STAED

                                      A BILL FOR

  1 An Act striking certain statutory repeal provisions relating
  2    to the state sales and use tax and the secure an advanced
  3    vision for education fund.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5644YH (3) 87
    md/jh

PAG LIN



  1  1    Section 1.  Section 423.2, subsection 11, paragraph b,
  1  2 subparagraph (3), Code 2018, 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 This subparagraph (3) is repealed December 31, 2029.
  1  6    Sec. 2.  Section 423.2, subsection 14, Code 2018, is amended
  1  7 by striking the subsection.
  1  8    Sec. 3.  Section 423.5, subsection 5, Code 2018, is amended
  1  9 by striking the subsection.
  1 10    Sec. 4.  Section 423.43, subsection 1, paragraph b, Code
  1 11 2018, is amended to read as follows:
  1 12    b.  Subsequent to the deposit into the general fund of
  1 13 the state and after the transfer of such revenues collected
  1 14 under chapter 423B, the department shall transfer one=sixth of
  1 15 such remaining revenues to the secure an advanced vision for
  1 16 education fund created in section 423F.2. This paragraph is
  1 17 repealed December 31, 2029.
  1 18    Sec. 5.  Section 423F.4, Code 2018, is amended to read as
  1 19 follows:
  1 20    423F.4  Borrowing authority for school districts.
  1 21    A school district may anticipate its share of the revenues
  1 22 under section 423F.2 by issuing bonds in the manner provided in
  1 23 section 423E.5, Code 2018. However, to the extent any school
  1 24 district has issued bonds anticipating the proceeds of an
  1 25 extended local sales and services tax for school infrastructure
  1 26 purposes imposed by a county pursuant to former chapter 423E,
  1 27 Code and Code Supplement 2007, prior to July 1, 2008, the
  1 28 pledge of such revenues for the payment of principal and
  1 29 interest on such bonds shall be replaced by a pledge of its
  1 30 share of the revenues under section 423F.2.
  1 31    Sec. 6.  REPEAL.  Section 423F.6, Code 2018, is repealed.
  1 32                           EXPLANATION
  1 33 The inclusion of this explanation does not constitute agreement with
  1 34 the explanation's substance by the members of the general assembly.
  1 35    Code section 423.2 imposes a state sales tax of 6 percent
  2  1 upon the sales price of all sales of tangible personal
  2  2 property, consisting of goods, wares, merchandise, and other
  2  3 items designated by statute, sold at retail in the state to
  2  4 consumers, except as otherwise provided by Code chapter 423.
  2  5 Generally, by operation of law, a sale subject to the sales
  2  6 tax is also subject to the use tax. Following the transfer
  2  7 of amounts required by statute, if applicable, one=sixth of
  2  8 the remaining state sales tax revenue from the 6 percent tax
  2  9 is transferred to the secure an advanced vision for education
  2 10 (SAVE) fund created in Code section 423F.2.  Moneys in the SAVE
  2 11 fund are allocated to school districts on a per pupil basis to
  2 12 be used for infrastructure and property tax reduction purposes
  2 13 specified in Code chapter 423F.  Under current law, the sales
  2 14 and use tax rate of 6 percent is reduced to 5 percent on January
  2 15 1, 2030, and Code chapter 423F, along with other corresponding
  2 16 provisions, is repealed December 31, 2029.
  2 17    This bill repeals Code section 423F.6, which currently
  2 18 provides for the repeal of Code chapter 423F on December 31,
  2 19 2029.  The bill also strikes corresponding repeal provisions
  2 20 relating to the allocation of sales tax revenue and provisions
  2 21 that reduce the state sales and use tax rate from 6 percent to 5
  2 22 percent beginning January 1, 2030.
  2 23    The bill also specifies a Code year for a statutory reference
  2 24 in current law relating to the manner in which school districts
  2 25 issued bonds payable from revenues received from the SAVE fund.
       LSB 5644YH (3) 87
       md/jh