Bill Text: IA HF179 | 2013-2014 | 85th General Assembly | Introduced

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Bill Title: A bill for an act relating to school district funding from the taxpayers trust fund by making transfers to the property tax equity and relief fund, establishing a school district property tax replacement fund and making transfers to the fund, making appropriations, and including effective date and applicability provisions.

Spectrum: Strong Partisan Bill (Democrat 34-2)

Status: (Introduced - Dead) 2013-12-31 - END OF 2013 ACTIONS [HF179 Detail]

Download: Iowa-2013-HF179-Introduced.html

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House File 179 - Introduced
HOUSE FILE 179
BY HALL , JORGENSEN , M.
SMITH , HANUSA , COHOON ,
KEARNS , DAWSON , THOMAS ,
ABDUL-SAMAD , McCARTHY ,
HANSON , BERRY , R. OLSON ,
GASKILL , RUNNING-MARQUARDT ,
BEARINGER , ANDERSON ,
T. TAYLOR , HUNTER ,
KAJTAZOVIC , WOLFE , WOOD ,
MUHLBAUER , FORBES , RIDING ,
OLDSON , T. OLSON , PRICHARD ,
LYKAM , KRESSIG , RUFF ,
OURTH , DUNKEL , THEDE ,
KELLEY , and GAINES
A BILL FOR
An Act relating to school district funding from the taxpayers
trust fund by making transfers to the property tax equity
and relief fund, establishing a school district property
tax replacement fund and making transfers to the fund,
making appropriations, and including effective date and
applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 8.57E, subsection 2, Code 2013, is
amended to read as follows:
2. Moneys in the taxpayers trust fund shall only be used
pursuant to appropriations or transfers made by the general
assembly for tax relief.
Sec. 2. Section 257.2, subsection 9, Code 2013, is amended
by adding the following new paragraph:
NEW PARAGRAPH . d. Property tax replacement payments
received under section 257.16B.
Sec. 3. Section 257.4, subsection 1, paragraph a, Code 2013,
is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (8) The amount of the school district
property tax replacement payment received by the school
district under section 257.16B.
Sec. 4. Section 257.4, subsection 1, paragraph b, Code 2013,
is amended to read as follows:
b. For the budget year beginning July 1, 2008, and
succeeding budget years, the department of management shall
annually determine an adjusted additional property tax levy and
a statewide maximum adjusted additional property tax levy rate,
not to exceed the statewide average additional property tax
levy rate, calculated by dividing the total adjusted additional
property tax levy dollars statewide by the statewide total
net taxable valuation. For purposes of this paragraph, the
adjusted additional property tax levy shall be that portion of
the additional property tax levy corresponding to the state
cost per pupil multiplied by a school district’s weighted
enrollment, and then multiplied by one hundred percent less
the regular program foundation base per pupil percentage
pursuant to section 257.1 , and then reduced by the amount of
property tax replacement received under section 257.16B . The
district shall receive adjusted additional property tax levy
aid in an amount equal to the difference between the adjusted
additional property tax levy rate and the statewide maximum
adjusted additional property tax levy rate, as applied per
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H.F. 179
thousand dollars of assessed valuation on all taxable property
in the district. The statewide maximum adjusted additional
property tax levy rate shall be annually determined by the
department taking into account amounts allocated pursuant to
section 257.15, subsection 4 . The statewide maximum adjusted
additional property tax levy rate shall be annually determined
by the department taking into account amounts allocated
pursuant to section 257.15, subsection 4 , and the balance of
the property tax equity and relief fund created in section
257.16A at the end of the calendar year.
Sec. 5. Section 257.15, subsection 4, paragraph b, Code
2013, is amended to read as follows:
b. After lowering all school district adjusted additional
property tax levy rates to the statewide maximum adjusted
additional property tax levy rate under paragraph “a” , the
department of management shall use any remaining funds at the
end of the calendar year to further lower additional property
taxes by increasing for the budget year beginning the following
July 1, the state foundation base percentage. Moneys used
pursuant to this paragraph shall supplant an equal amount of
the appropriation made from the general fund of the state
pursuant to section 257.16 that represents the increase in
state foundation aid.
Sec. 6. Section 257.16A, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION . 1A. For each fiscal year beginning on or
after July 1, 2013, and after the transfer in section 257.16B,
there is transferred from the taxpayers trust fund created in
section 8.57E to the fund an amount necessary to lower all
school district adjusted additional property tax levy rates to
the statewide maximum adjusted additional property tax levy
rate pursuant to section 257.15, subsection 4, after taking
into account amounts allocated pursuant to section 257.15,
subsection 4, and amounts deposited in the fund under section
423F.2, subsection 3.
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Sec. 7. NEW SECTION . 257.16B School district property tax
replacement fund —— payments.
1. a. A school district property tax replacement fund
is created in the state treasury under the authority of the
department of management. For each fiscal year beginning on
or after July 1, 2013, there is transferred from the taxpayers
trust fund created in section 8.57E to the fund an amount
necessary to make all school district property tax replacement
payments under this section.
b. There is appropriated annually all moneys in the fund
to the department of management for purposes of providing
replacement payments to school districts pursuant to this
section.
2. For each budget year beginning on or after July 1,
2013, the amount of money in the school district property tax
replacement fund shall be used to provide school district
replacement payments to each school district in the state as
calculated in subsection 3, paragraph “c” , and subsection 4, if
applicable.
3. For each budget year beginning on or after July 1, 2013,
the department of management shall calculate for each school
district all of the following:
a. The state cost per pupil for the budget year beginning
July 1, 2012, multiplied by one hundred percent less the
regular program foundation base per pupil percentage pursuant
to section 257.1.
b. The state cost per pupil for the budget year beginning
July 1, 2013, multiplied by one hundred percent less the
regular program foundation base per pupil percentage pursuant
to section 257.1.
c. The amount of each school district’s property tax
replacement payment. Each school district’s property tax
replacement payment equals the school district’s weighted
enrollment for the budget year multiplied by the remainder of
the amount calculated for the school district under paragraph
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“b” minus the amount calculated for the school district under
paragraph “a” .
4. If an amount appropriated for a fiscal year is
insufficient to pay all school district replacement payments
for the budget year, the director of the department of
management shall prorate the payments from the fund and shall
notify the county auditors of the pro rata percentage on or
before July 31.
5. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys deposited in the fund shall be credited to
the fund. Moneys in the fund are not subject to the provisions
of section 8.33 and shall not be transferred, used, obligated,
appropriated, or otherwise encumbered except as provided in
this section.
Sec. 8. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
immediate importance, takes effect upon enactment.
Sec. 9. APPLICABILITY. This Act applies to school budget
years beginning on or after July 1, 2013.
EXPLANATION
This bill relates to school district funding by making
certain transfers and appropriations and by providing for
school district property tax replacement payments.
For each fiscal year beginning on or after July 1, 2013, the
bill transfers from the taxpayers trust fund created in Code
section 8.57E an amount necessary to lower all school district
adjusted additional property tax levy rates to the statewide
maximum adjusted additional property tax levy rate as provided
for in Code section 257.15(4)(a), after taking into account
amounts currently allocated for that purpose pursuant to Code
section 257.15, subsection 4, and amounts deposited in the fund
from the secure an advanced vision for education fund under
Code section 423F.2, subsection 3. The bill also modifies the
method of calculating a school district’s adjusted additional
property tax levy under Code section 257.4 to reflect property
tax replacement payments received by the school district for
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the same budget year pursuant to new Code section 257.16B.
The bill establishes a school district property tax
replacement fund under the authority of the department of
management. For each fiscal year beginning on or after July
1, 2013, and before the transfer of moneys to the property tax
equity and relief fund, the bill transfers from the taxpayers
trust fund under Code section 8.57E to the school district
property tax replacement fund an amount necessary to make all
school district property tax replacement payments under new
Code section 257.16B. The bill appropriates the moneys in the
replacement fund to the department of management for that
purpose.
Under the bill, for each budget year beginning on or after
July 1, 2013, each school district’s property tax replacement
payment amount is equal to the school district’s weighted
enrollment for the budget year multiplied by the difference of
the following: (1) the state cost per pupil for the budget
year beginning July 1, 2013, multiplied by 100 percent less the
regular program foundation base per pupil percentage pursuant
to Code section 257.1; and (2) the state cost per pupil for the
budget year beginning July 1, 2012, multiplied by 100 percent
less the regular program foundation base per pupil percentage
pursuant to Code section 257.1.
The bill provides that if an amount appropriated for a fiscal
year is insufficient to pay all school district replacement
payments for the budget year, the director of the department of
management shall prorate the payments from the fund.
The bill amends Code section 8.57E to allow transfers by the
general assembly from the taxpayers trust fund for tax relief
in addition to appropriations which are already allowed under
Iowa law.
The bill modifies the definition of miscellaneous income
under Code chapter 257 to exclude property tax replacement
payments received by a school district under new Code
section 257.16B. The bill also modifies the calculation for
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H.F. 179
determining the amount of a school district’s additional
property tax levy to reflect property tax replacement payment
amounts received under new Code section 257.16B.
The bill takes effect upon enactment. The bill applies to
school budget years beginning on or after July 1, 2013.
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