This text of Iowa § 418.11 (Sales tax increment calculation) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1.The department of revenue shall calculate quarterly the amount of increased sales tax
revenues for each governmental entity approved to use sales tax increment revenues and the
amount of such revenues to be transferred to the sales tax increment fund pursuant to section
423.2A, subsection 2.
2.The department of revenue shall calculate the amount of the increase for purposes of
subsection 1 as follows:
a.Determine the amount of sales subject to the tax under section 423.2 in each applicable
area specified in subsection 3, during the corresponding quarter in the base year from retail
establishments in such areas.
b.Determine the amount of sales subject to the tax under section 423.2 in each applicable
area specified in subsection 3, during the corresponding quarter in each subsequent c
Free access — add to your briefcase to read the full text and ask questions with AI
1. The department of revenue shall calculate quarterly the amount of increased sales tax
revenues for each governmental entity approved to use sales tax increment revenues and the
amount of such revenues to be transferred to the sales tax increment fund pursuant to section
423.2A, subsection 2.
2. The department of revenue shall calculate the amount of the increase for purposes of
subsection 1 as follows:
a. Determine the amount of sales subject to the tax under section 423.2 in each applicable
area specified in subsection 3, during the corresponding quarter in the base year from retail
establishments in such areas.
b. Determine the amount of sales subject to the tax under section 423.2 in each applicable
area specified in subsection 3, during the corresponding quarter in each subsequent calendar
year from retail establishments in such areas.
c. Subtract the base year quarterly amount determined under paragraph “a” from the
subsequent calendar year quarterly amount in paragraph “b”.
d. If the amount determined under paragraph “c” is positive, the product of the amount
determined under paragraph “c” times the tax rate imposed under section 423.2 shall
constitute the amount of increased sales tax revenue pursuant to subsection 1.
3. a. For projects approved for a governmental entity as defined in section 418.1,
subsection 4, paragraph “a”, the area used to determine the sales tax increment shall include
only the unincorporated areas of the county.
b. For projects approved for a governmental entity as defined in section 418.1, subsection
4, paragraph “b”, the area used to determine the sales tax increment shall include only the
incorporated areas of the city.
c. For projects approved for a governmental entity as defined in section 418.1, subsection
4, paragraph “c”, the area used to determine the sales tax increment shall include the
incorporated areas of each participating city, the unincorporated areas of each participating
county, the area of any participating drainage district not otherwise included in the areas of
the participating cities or county, and the area served by any sanitary district or combined
water and sanitary district and not otherwise included in the areas of the participating cities
or counties, as applicable.
d. For all projects, the area used to determine the sales tax increment shall not include
any parcels of real property that are included in a reinvestment district designated pursuant
to chapter 15J.
4. Each governmental entity shall assist the department of revenue in identifying retail
establishments in the governmental entity’s applicable area that are collecting sales tax. This
process shall be ongoing until the governmental entity ceases to utilize sales tax revenue
under this chapter.