House File 74 - Introduced




                                 HOUSE FILE       
                                 BY  SHEETS, GASSMAN, and
                                     FISHER

                                      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 This subparagraph (3) is repealed December 31, 2029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, 2040.
  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 2040.
  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 2040.
  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  1 26 repealed December 31, 2029 effective January 1, 2040.
  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  1 30 This chapter is repealed December 31, 2029 effective January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, 2040.
  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, 2040.
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