§ 423F.2 — Secure an advanced vision for education fund creation and distribution — repeal of local sales and services taxes

Iowa § 423F.2

• Jurisdiction: Iowa
• Title X: FINANCIAL RESOURCES
• Ch. 423F: STATEWIDE SCHOOL INFRASTRUCTURE FUNDING

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of local sales and services taxes.
1. a. AfterJuly1,2008,alllocalsalesandservicestaxesforschoolinfrastructurepurposes
imposed under chapter 423E, Code 2023, are repealed. After July 1, 2008, a county no longer
has the authority under chapter 423E, Code 2023, or any other provision of law to impose or
to extend an existing local sales and services tax for school infrastructure purposes.
b. The increase in the state sales, services, and use taxes under chapter 423, subchapters
II and III, from five percent to six percent shall replace the repeal of the county’s local sales
and services tax for school infrastructure purposes. The distribution of moneys in the secure
an advanced vision for education fund and the use of the moneys for infrastructure purposes
or property tax relief shall be as provided in this chapter.
c. To the extent that any school district has issued bonds anticipating the proceeds of a
local sales and services tax for school infrastructure purposes prior to July 1, 2008, the pledge
of such tax receipts for the payment of principal and interest on such bonds shall be replaced
by a pledge of its share of the revenues the school district receives under this section.
2. A secure an advanced vision for education fund is created as a separate and distinct
fund in the state treasury under the control of the department of revenue. Moneys in the
fund include revenues credited to the fund pursuant to this chapter, appropriations made to
the fund, and other moneys deposited into the fund. Subject to subsection 3, any amounts
disbursed from the fund shall be utilized for school infrastructure purposes or property tax
relief.
3. a. The moneys available in a fiscal year in the secure an advanced vision for education
fund shall be distributed by the department of revenue to each school district on a per pupil
basis calculated using each school district’s budget enrollment, as defined in section 257.6,
for that fiscal year.
b. (1) Prior to distribution of moneys in the secure an advanced vision for education fund
to school districts, an amount equal to the equity transfer amount for the fiscal year minus
the foundation base transfer amount for the fiscal year shall be distributed and credited to
the property tax equity and relief fund created in section 257.16A, an amount equal to the
foundation base transfer amount shall be distributed and credited to the foundation base
supplement fund created in section 257.16D, and an amount equal to the career academy
transfer amount for the fiscal year shall be distributed and credited to the career academy
fund created in section 257.51.
(2) For purposes of this subsection, the equity transfer amount is determined by
multiplying the equity transfer percentage by the amount of moneys available in the secure
an advanced vision for education fund in the fiscal year.
§423F.2, STATEWIDE SCHOOL INFRASTRUCTURE FUNDING 2
(a) For the fiscal year beginning July 1, 2018, the equity transfer percentage is two and
one-tenth percent. For the fiscal year beginning July 1, 2019, the equity transfer percentage
is three and one-tenth percent.
(b) For each fiscal year beginning on or after July 1, 2020, the equity transfer percentage
is equal to the equity transfer percentage for the immediately preceding fiscal year, unless
the amount of moneys available in the secure an advanced vision for education fund in the
immediately preceding fiscal year equals or exceeds one hundred two percent of the amount
of moneys available in the fund for the fiscal year prior to the immediately preceding fiscal
year, in which case the equity transfer percentage shall be the equity transfer percentage
for the immediately preceding fiscal year plus one percent subject to the limitation in
subparagraph division (c).
(c) If the equity transfer percentage calculated under subparagraph division (b) exceeds
thirty percent, the equity transfer percentage for that fiscal year shall be thirty percent.
(3) Forpurposesofthissubsection, thefoundationbasetransferamountforthefiscalyear
beginning July 1, 2019, is zero, and for each fiscal year beginning on or after July 1, 2020, the
foundation base transfer amount equals the equity transfer amount for the fiscal year under
subparagraph (2) minus the sum of the following:
(a) Three and one-tenth percent of the amount of the moneys available in the secure an
advanced vision for education fund in the fiscal year.
(b) One-half of the product of the equity transfer percentage for the fiscal year minus
three and one-tenth percent multiplied by the moneys available in the secure an advanced
vision for education fund in the fiscal year.
(4) (a) For purposes of this subsection, the career academy transfer amount for the fiscal
year beginning July 1, 2019, is one million dollars.
(b) For each fiscal year beginning on or after July 1, 2020, the career academy transfer
amount is equal to the lesser of five million dollars or the amount of the career academy
transfer amount for the immediately preceding fiscal year, unless the amount of moneys
available in the secure an advanced vision for education fund in the immediately preceding
fiscal year equals or exceeds one hundred two and one-half percent of the amount of moneys
availableinthefundforthefiscalyearpriortotheimmediatelyprecedingfiscalyear, inwhich
casethecareeracademytransferamountequalsthelesseroffivemilliondollarsorthesumof
the amount of the career academy transfer amount for the immediately preceding fiscal year
plus one-half percent of the amount of moneys available in the secure an advanced vision for
education fund in the fiscal year following the deposit of revenues in the property tax equity
and relief fund and the foundation base supplement fund.
4. a. The director of revenue by the last day of each month shall transfer to each school
district the amount of tax moneys remitted to the department attributable to each school
district from the preceding month.
b. On or before August 15 of each fiscal year the director of revenue shall provide to each
schooldistrictanestimateoftheamountoftaxmoneystobedistributedtoeachschooldistrict
for the current fiscal year.