Bill Text: IA SF477 | 2015-2016 | 86th General Assembly | Introduced

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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. (Formerly SF 255 and SF 409.)

Spectrum: Committee Bill

Status: (Engrossed - Dead) 2015-03-26 - Read first time, referred to Ways & Means. H.J. 718. [SF477 Detail]

Download: Iowa-2015-SF477-Introduced.html

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Senate File 477 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO SF 409)
                                 (SUCCESSOR TO SF 255)

                                      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:
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PAG LIN



  1  1    Section 1.  Section 423.2, subsection 11, paragraph b,
  1  2 subparagraph (3), Code 2015, 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 This subparagraph (3) is repealed December 31, 2029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  effective January 1, 2050.
  1  7    Sec. 2.  Section 423.2, subsection 13, Code 2015, is amended
  1  8 to read as follows:
  1  9    13.  The sales tax rate of six percent is immediately reduced
  1 10 to five percent following repeal of chapter 423F, section
  1 11 423.3, subsection 11, paragraph "b", and section 423.43,
  1 12 subsection 1, paragraph "b", on January 1, 2030 2050.
  1 13    Sec. 3.  Section 423.5, subsection 5, Code 2015, is amended
  1 14 to read as follows:
  1 15    5.  The use tax rate of six percent is immediately reduced
  1 16 to five percent following the repeal of chapter 423F, section
  1 17 423.3, subsection 11, paragraph "b", and section 423.43,
  1 18 subsection 1, paragraph "b", on January 1, 2030 2050.
  1 19    Sec. 4.  Section 423.43, subsection 1, paragraph b, Code
  1 20 2015, is amended to read as follows:
  1 21    b.  Subsequent to the deposit into the general fund of
  1 22 the state and after the transfer of such revenues collected
  1 23 under chapter 423B, the department shall transfer one=sixth of
  1 24 such remaining revenues to the secure an advanced vision for
  1 25 education fund created in section 423F.2. This paragraph is
  1 26 repealed December 31, 2029 effective January 1, 2050.
  1 27    Sec. 5.  Section 423F.6, Code 2015, is amended to read as
  1 28 follows:
  1 29    423F.6  Repeal.
  1 30 This chapter is repealed December 31, 2029 effective January
  1 31 1, 2050.
  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 tax of 6 percent upon
  2  1 the sales price of all sales of tangible personal property,
  2  2 consisting of goods, wares, merchandise, and other items
  2  3 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 for the natural resources and outdoor
  2  8 recreation trust fund, one=sixth of the remaining state sales
  2  9 tax revenue from the 6 percent tax is transferred to the
  2 10 secure an advanced vision for education (SAVE) fund created in
  2 11 Code section 423F.2.  Moneys in the SAVE fund are allocated
  2 12 to school districts on a per pupil basis to be used for
  2 13 infrastructure and property tax reduction purposes specified
  2 14 in Code chapter 423F.  Under current law, the sales tax rate of
  2 15 6 percent is reduced to 5 percent on January 1, 2030, and Code
  2 16 chapter 423F, along with other corresponding provisions, is
  2 17 repealed December 31, 2029.
  2 18    This bill extends the 6 percent sales tax rate, the
  2 19 allocation to the SAVE fund, and the statutory repeal of Code
  2 20 chapter 423F until January 1, 2050.
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