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Proyectos de ley › 88.ª Asamblea General

HF 546Firmado por gobernador(a) · 24 de mayo de 2019

Relating to school funding by modifying provisions relating to the collection of sales tax for deposit in the secure an advanced vision for education fund, provisions relating to the use of tax revenue from the secure an advanced vision for education fund, and provisions relating to the calculation of the additional property tax levy, and making appropriations. Effective 7-1-19

Presentado por el comité Ways and Means (successor To Hsb 18) de la Cámara

Temas:TaxesProperty taxes

La misma legislación: HSB 18, HF 425

Escriba a sus legisladores sobre esto

También incluye HSB 18 y HF 425.

Qué cambió antes de aprobarse
Página oficial del proyectoDeclaraciones de cabilderosUna página para imprimir

Dónde está ahora

  1. Hecho: Presentado18 de febrero de 2019
  2. Hecho: Subcomité18 de febrero de 2019
  3. Hecho: Comité de la Cámara26 de febrero de 2019
  4. Hecho: Lo aprueba la Cámara13 de marzo de 201996–3
  5. Hecho: Comité del Senado17 de abril de 2019
  6. Hecho: Lo aprueba el Senado24 de abril de 201948–2
  7. Hecho: A gobernador(a)2 de mayo de 2019
  8. Hecho: Firmado como ley24 de mayo de 2019

Firmado como ley ¿Qué es el embudo (funnel)?

Qué contiene

La explicación oficial está en inglés; todavía no hay resumen en palabras sencillas.

2 imposes a state tax of percent upon the sales price of all sales of tangible personal property, consisting of goods, wares, merchandise, and other items designated by statute, sold at retail in the state to consumers or users, except as otherwise provided by Code chapter 423. Generally, by operation of law, a sale subject to the sales tax is also subject to the use tax.2. Moneys in the SAVE fund are allocated to school districts on a per pupil basis to be used for infrastructure and property tax reduction purposes specified in Code chapter 423F.

Lea la explicación completa

Under current law, the sales tax rate of percent is reduced to percent on January 1, 2030, and Code chapter 423F, along with other corresponding provisions, is repealed December 31, 2029. This bill extends the percent sales tax rate, the allocation to the SAVE fund, and the statutory repeal of Code chapter 423F until January 1, 2051.1 percent of the moneys available in the SAVE fund are distributed and credited to the property tax equity and relief (PTER) fund to be used for additional property tax levy aid. The bill provides that for each fiscal year beginning on or after July 1, 2019, the equity transfer amount, as created in the bill, is distributed and credited to the PTER fund and foundation base supplement fund in amounts specified in the bill. The bill creates the equity transfer percentage, which is used to determine the amount of the equity transfer amount, and is equal to the equity transfer percentage for the immediately preceding fiscal year, unless the amount of money available in the SAVE fund in the immediately preceding fiscal year is equal to or exceeds 102 percent of the amount of money available in the SAVE 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 percent. However, the bill caps the percentage at percent.1 percent. The amount required to be transferred from the SAVE fund to the PTER fund is equal to the equity transfer amount minus the foundation base transfer amount.1 percent multiplied by the moneys available in the SAVE fund in the fiscal year. An amount equal to the foundation base transfer amount is credited to the foundation base supplement fund to be used by the department of management for purposes of making foundation base supplement payments to school districts on a per pupil basis calculated using each school district’s weighted enrollment and subject to specified total foundation base supplement limits in the bill. The bill also establishes a career academy transfer amount that for the fiscal year beginning July 1, 2019, is $1 million.5 percent of the amount of moneys available in the SAVE fund in the fiscal year following the deposit of revenues in the property tax equity and relief fund and the foundation base supplement fund.15. Under the bill, existing revenue purpose statements for the use of SAVE fund revenues adopted before July 1, 2019, shall terminate and be of no further force and effect on January 1, 2031, or the expiration date of the revenue purpose statement, whichever is earlier. If a school district intends to use SAVE fund revenues for purposes other than those which can be approved by the school board alone and does not intend to operate without a revenue purpose statement on or after January 1, 2031, or the expiration of the revenue purpose statement, whichever is earlier, the school board must submit a revenue purpose statement for approval by the electors on or after July 1, 2019, and such revenue purpose statement submitted to the electors shall include all proposed uses including those previously approved by the electors, if applicable.5 prior to the date of termination, or the validity of a contract or other obligation of the school district secured in whole or in part by or requiring the payment of SAVE revenues in effect prior to the date of termination. The bill provides that prior to approving the use of SAVE revenues for an athletic facility infrastructure project that is defined in the bill to mean a school infrastructure project that includes in whole or in part, the construction of an athletic facility, the board of directors must first hold an additional public hearing on the issue of the athletic facility. The bill defines “athletic facility” to mean a building or structure, or portion thereof, that is not physically attached to a student attendance center. If at any time prior to the 15th day following the hearing, the secretary of the board of directors receives a petition containing the required number of signatures and asking that the question of the approval of the use of revenues for the athletic facility infrastructure project be submitted to the voters of the school district, the board of directors shall either rescind the resolution for use of SAVE revenues for the athletic facility infrastructure project or direct the county commissioner of elections to submit the question to the registered voters of the school district. If a majority of those voting on the question favors the use of the SAVE revenues for the athletic facility infrastructure project, the board shall be authorized to approve such use by resolution of the board. If a majority of those voting on the question does not favor the use of the SAVE revenues for the school infrastructure project, the board of directors shall rescind the board’s resolution for use of SAVE revenues for the athletic facility infrastructure project. If a petition is not received by the board of directors within the prescribed time period, the board of directors may approve the use of SAVE revenues for the athletic facility infrastructure project without voter approval. The bill also establishes limitations on the period of time to bring an action to question the authority to use funds for such purpose or the legality of any proceedings in connection with the authorization of such use.3 defines “school infrastructure” for purposes of the uses for which school districts are permitted to expend SAVE revenues. The bill adds “school safety and security infrastructure”, as defined in the bill, to the definition of “school infrastructure”. The bill specifies that it is the intent of the general assembly that each school district prioritize the use of SAVE revenues for secure entries for the district’s attendance centers before expending such revenues for athletic facility infrastructure projects. Current law authorizes a school district to anticipate its share of SAVE fund revenues by issuing bonds without voter approval. The bill provides that revenue bonds issued on or after July 1, 2019, shall not be sold at public sale or at a private sale without notice and a public hearing. Additionally, if at any time prior to the 15th day following the hearing, the secretary of the board of directors receives a petition containing the required number of signatures and asking that the question of the issuance of such bonds be submitted to the voters of the school district, the school board shall either rescind its adoption of the resolution or direct the county commissioner of elections to submit the question to the registered voters of the school district. The petition must be signed by eligible electors equal in number to not less than 100 or percent of the number of voters at the last preceding election of school officials, whichever is greater. If the school board submits the question at an election and a majority of those voting on the question favors issuance of the bonds, the board shall be authorized to issue the bonds. The bill also places limitations on the period of time during which an action questioning the legality or procedural compliance for the issuance of such bonds may be brought. Currently, a school district with a certified enrollment of fewer than 250 pupils in the entire district or certified enrollment of fewer than 100 pupils in high school must apply to the department of education for a certificate of need before the school district can expend the supplemental school infrastructure amount received for new construction or for payments for bonds issued for new construction against the supplemental school infrastructure amount. The bill modifies the criteria to be used by the department of education in determining whether to issue a certificate of need to include the cost-benefit analysis of remodeling, reconstructing, or repairing existing buildings versus new construction and consideration of the benefit of the new construction on student learning.3.16.2. The inclusion of this specification is intended to reinstate the requirement of political subdivisions to comply with any state mandates included in the bill.

Cambiado después por las enmiendas S-3180, H-1022; vea Enmiendas.

Texto completo del proyecto (en inglés) · Qué cambió antes de aprobarse1

Senate subcommittee

Named March 26, 2019. It hasn’t reported yet.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Nota fiscal

Resumen con IA This bill extends the one-cent sales tax used for school infrastructure through January 1, 2051, and changes how those funds are distributed to school districts and property tax relief funds. It is estimated that school districts will receive less money from the SAVE fund starting in fiscal year 2020, with reductions growing from $6.5 million in fiscal year 2020 to $29.8 million in fiscal year 2024. The bill also increases allocations to the Property Tax Equity Relief Fund and creates a new fund for career academy grants, which is estimated to cost the Department of Education $108,000 per fiscal year for one additional staff position. (en inglés)2

Lea la nota fiscal (en inglés)

Description

House File 546 contains multiple provisions regarding Secure an Advanced Vision for Education (SAVE) and the Property Tax Equity Relief (PTER) Fund. The Bill provides for the extension of the one-cent sales tax that is distributed to school districts for the following uses:

  • Reduction of bond levies.
  • Reduction of regular and voted physical, plant, and equipment levies (PPEL).
  • Reduction of the public educational and recreational levy (PERL).
  • Authorized infrastructure projects.
  • Payment of principal and interest on bonds issued under the School Infrastructure Local Option (SILO) sales tax or SAVE.

The Bill extends the sunset of SAVE to January 1, 2051, and adjusts the amount of funds being directed into the PTER Fund. In FY 2020, the amount directed to PTER is 3.1% of the total funds generated by SAVE. Starting in FY 2021, for fiscal years in which the growth of SAVE is more than 2.0% over the previous fiscal year, the amount directed into the PTER Fund will increase by 1.0% until it reaches a cap of 30.0% of the funds generated by SAVE. Beginning in FY 2021, one-half of the increase in funds each year will flow into a newly created Foundation Base Supplement Fund (FBSF) within the PTER Fund, which will function to increase the State cost per pupil foundation level. The current foundation level is set in Iowa Code section 257.1(2)(b) as 87.5% of the State cost per pupil.

The Bill also creates a fund for career academies, which will receive an annual distribution from SAVE. The Department of Education is directed to adopt rules for the distribution of these funds in the form of competitive grants that may be awarded to schools for use on career academy infrastructure and equipment. If the growth of SAVE is more than 2.5% over the previous fiscal year, the amount allocated to the Career Academies Fund is to increase by 0.5% of the amount of SAVE funds available after the distribution to the PTER Fund and the FBSF, to a maximum of $5.0 million.

The Bill also makes changes to requirements for revenue purpose statements under SAVE and requirements for the issuance of bonds under SAVE. Changes include requiring the completion of a cost-benefit analysis of remodeling or repairing existing buildings for districts completing a certificate of need and requiring that if a school district proposes an athletic infrastructure project using SAVE funds, the district must hold a public hearing on the proposed use of the funds. After the public hearing on a proposed sports or athletic facility, if a vote is successfully petitioned for, the district must hold a vote on the use of the funds. All bond sales must receive public notice and are subject to a petitioned vote.

The Bill also clarifies that SAVE funds may be used for school safety and security infrastructure.

Background

During the 2008 Legislative Session, the General Assembly enacted HF 2663 (State Sales and Use Tax for School Infrastructure Act). Beginning July 1, 2008, the Act repealed the SILO sales tax, which was enacted by individual counties; increased the State sales tax from 5.0% to 6.0%; and designated the 1.0% increase to be used for school infrastructure purposes and property tax relief. The State sales/use tax for school infrastructure (SAVE) is currently set to be repealed at the end of calendar year 2029.

In FY 2015, the rate of distribution into the PTER Fund was set at 2.1% of the total funding generated by the 1.0% SAVE sales tax. The remaining 97.9% of the 1.0% sales tax is distributed to school districts on a per-pupil basis. The PTER funding generated by SAVE is combined with an annual $24.0 million General Fund standing appropriation and is used within the State school aid formula to reduce the additional property tax levy for districts with the highest property tax rates. For the purpose of the FY 2019 school aid formula, the 2.1% allocation generated $9.7 million in funding for PTER for a total of $33.7 million, which was distributed across 57 school districts with the highest additional property tax rates. The FY 2019 PTER distribution was based on the total FY 2017 funds generated by SAVE. The FBSF is a new fund that will supplement the other property tax relief programs, including the Property Tax Replacement Payment (PTRP) and PTER funds. The per-pupil PTRP payment is calculated annually to fix the per-student additional levy portion of the State cost per pupil at the FY 2013 level, or $750 per student. In FY 2019, the PTRP is $92 per student, totaling an estimated $52.1 million. The PTRP is fixed at the current year rate unless legislation is passed to increase the payment with the increase in the State cost per pupil.

Assumptions

The following assumptions are based on growth estimates established by the Revenue Estimating Conference (REC) and the Department of Revenue (IDR):

  • SAVE Fund
  • The growth rate of the funds available in SAVE is estimated at 6.24% for FY 2019.
  • The estimated growth rates for FY 2020 and FY 2021 are 7.28% and 3.32%, respectively.
  • Estimated future fiscal year growth rates are presented in Table 4.
  • The amounts allocated to school districts from SAVE will be reduced starting in FY 2020 as compared to current law.
  • PTER Fund
  • This Bill increases the funds allocated to PTER and dedicated to property tax relief for districts with the highest additional property tax rates.
  • Starting in FY 2021, the amount of the PTER Fund transfer may increase by 1.0% annually if SAVE revenue grows at a rate greater than 2.0% the previous fiscal year. Using the estimates in Table 4, the PTER may reach its cap of 30.0% in FY 2048.
  • The $24.0 million standing appropriation to PTER will continue.
  • The PTER distribution for the upcoming fiscal year is based on the previous fiscal year’s final receipts; the PTER distribution for FY 2020 is based on final FY 2018 income. Therefore, changes in the distribution to the PTER Fund will not take effect within the school aid formula until the FY 2022 school year, and the estimated distribution of funds from the FBSF will not take effect within the school aid formula until the FY 2023 school year.
  • Career Academies Fund
  • The allocation to the Career Academies Fund will be $1.0 million in FY 2020.
  • The allocation to the Career Academies Fund may increase annually if SAVE revenue grows at a rate greater than 2.5% over the previous fiscal year. It is estimated that the allocation will reach its peak of $5.0 million in FY 2022. See Table 4 for more information.
  • The Department of Education will require 1.0 additional full-time equivalent (FTE) position to assume the new grant management responsibilities.

Fiscal Impact

Table 1 shows the estimated decrease in revenue for FY 2020 to FY 2024 from the SAVE Fund for school districts as compared to current law for the same period.

Table 1 — HF 546 Table 2 shows the estimated increases to the PTER Fund for FY 2020 to FY 2024 as compared to current law for the same period, and the estimated allocations for additional levy buydown and the FBSF.

Table 2 — HF 546 Estimated Reductions to School Districts from SAVE Fund (in millions) Current Law HF 546 Est. Fiscal Impact FY 2020 537.2$ 530.7$ -6.5$ FY 2021 555.1 540.0 -15.1 FY 2022 565.8 543.4 -22.3 FY 2023 585.4 562.5 -22.9 FY 2024 607.2 577.4 -29.8

Estimated PTER Fund Allocations

(in millions) Distributions from the PTER Fund under HF 546

PTER Fund Allocations

under HF 546

Change Compared to

Current Law Levy Allocations FBSF Allocation

FY 2020 17.0$ 5.5$ 17.0$ 0.0$ FY 2021 23.2 11.3 20.4 2.8 FY 2022 29.5 17.3 23.7 5.8 FY 2023 30.5 17.9 24.5 6.0 FY 2024 37.8 24.8 28.5 9.3 Table 3 shows the estimated allocations to the Career Academies Fund from FY 2020 to FY 2024.

Table 3 — HF 546 The Department of Education estimates it will need 1.0 additional FTE position ($108,000 per fiscal year) for the management of the grants under the Career Academies funding distribution. Table 4 uses the REC and the IDR growth estimates to calculate the projected SAVE, Career Academies, PTER, and FBSF distributions from FY 2018 to FY 2051, based on HF 546.

Estimated Career Academies Distributions

(in millions)

Career Academies

FY 2020 1.0$ FY 2021 3.7 FY 2022 5.0 FY 2023 5.0 FY 2024 5.0 Table 4 — HF 546 Projected SAVE Fund Distributions (in millions) Est. SAVE SAVE Career Percent Est. SAVE Adj. Additional Funding PTER Est. Total Fund Growth Allocation to Academies Allocated Allocated Levy Allocation Allocated to Standing Adjust Additional Fiscal Year Rate SAVE Fund School Districts Distribution to PTER to PTER from SAVE FBSF Appropriation Levy FY 2018 481.5$ 471.4$ 0.0$ 2.1% 10.0$ 10.0$ 0.0$ 24.0$ 34.0$ FY 2019 6.24% 511.5 530.7 0.0 2.1% 10.7 10.7 0.0 24.0 34.7 FY 2020 7.28% 548.8 530.7 1.0 3.1% 17.0 17.0 0.0 24.0 41.0 FY 2021 3.32% 567.0 540.0 3.7 4.1% 23.2 20.4 2.8 24.0 44.4 FY 2022 1.93% 577.9 543.4 5.0 5.1% 29.5 23.7 5.8 24.0 47.7 FY 2023 3.48% 598.0 562.5 5.0 5.1% 30.5 24.5 6.0 24.0 48.5 FY 2024 3.72% 620.2 577.4 5.0 6.1% 37.8 28.5 9.3 24.0 52.5 FY 2025 2.24% 634.1 584.1 5.0 7.1% 45.0 32.3 12.7 24.0 56.3 FY 2026 2.29% 648.7 591.1 5.0 8.1% 52.5 36.3 16.2 24.0 60.3 FY 2027 2.43% 664.4 598.9 5.0 9.1% 60.5 40.5 19.9 24.0 64.5 FY 2028 2.56% 681.4 607.6 5.0 10.1% 68.8 45.0 23.8 24.0 69.0 FY 2029 2.56% 698.8 616.3 5.0 11.1% 77.6 49.6 28.0 24.0 73.6 FY 2030 2.62% 717.1 625.4 5.0 12.1% 86.8 54.5 32.3 24.0 78.5 FY 2031 2.45% 734.7 633.5 5.0 13.1% 96.2 59.5 36.7 24.0 83.5 FY 2032 2.45% 752.7 641.6 5.0 14.1% 106.1 64.7 41.4 24.0 88.7 FY 2033 2.45% 771.2 649.7 5.0 15.1% 116.4 70.2 46.3 24.0 94.2 FY 2034 2.45% 790.1 657.9 5.0 16.1% 127.2 75.8 51.4 24.0 99.8 FY 2035 2.45% 809.4 666.0 5.0 17.1% 138.4 81.8 56.7 24.0 105.8 FY 2036 2.45% 829.2 674.1 5.0 18.1% 150.1 87.9 62.2 24.0 111.9 FY 2037 2.45% 849.6 682.3 5.0 19.1% 162.3 94.3 68.0 24.0 118.3 FY 2038 2.45% 870.4 690.4 5.0 20.1% 174.9 101.0 74.0 24.0 125.0 FY 2039 2.45% 891.7 698.5 5.0 21.1% 188.1 107.9 80.3 24.0 131.9 FY 2040 2.45% 913.5 706.6 5.0 22.1% 201.9 115.1 86.8 24.0 139.1 FY 2041 2.45% 935.9 714.7 5.0 23.1% 216.2 122.6 93.6 24.0 146.6 FY 2042 2.45% 958.9 722.8 5.0 24.1% 231.1 130.4 100.7 24.0 154.4 FY 2043 2.45% 982.3 730.8 5.0 25.1% 246.6 138.5 108.1 24.0 162.5 FY 2044 2.45% 1,006.4 738.7 5.0 26.1% 262.7 146.9 115.7 24.0 170.9 FY 2045 2.45% 1,031.1 746.7 5.0 27.1% 279.4 155.7 123.7 24.0 179.7 FY 2046 2.45% 1,056.3 754.5 5.0 28.1% 296.8 164.8 132.0 24.0 188.8 FY 2047 2.45% 1,082.2 762.3 5.0 29.1% 314.9 174.2 140.7 24.0 198.2 FY 2048 2.45% 1,108.7 771.1 5.0 30.0% 332.6 183.5 149.1 24.0 207.5 FY 2049 2.45% 1,135.9 790.1 5.0 30.0% 340.8 188.0 152.8 24.0 212.0 FY 2050 2.45% 1,163.7 809.6 5.0 30.0% 349.1 192.6 156.5 24.0 216.6 FY 2051 2.45% 596.1 412.3 5.0 30.0% 178.8 98.7 80.2 24.0 122.7 Est. PTER Distribution

Sources

  • Department of Education
  • Department of Management
  • Department of Revenue
  • Iowa Association of School Boards
  • Revenue Estimating Conference
  • LSA analysis and calculations

Cómo leer una nota fiscal3

Lo que cambia del Código de Iowa (Iowa Code)

Crea§257.16D§257.51

Modifica§257.15§257.2§257.4§423.2§423.2A§423.43§423.5§423F.2§423F.3§423F.4§423F.6

Cita§423E.5

Cómo funciona el Código4

Cabildeo

22 a favor · 0 en contra · 20 indecisos · Quiénes →

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Study bill

HSB 18Cleared committee

88th General Assembly

HF 425Didn’t advanceHF 546Became law

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