Text: SF2395            Text: SF2397
Complete Bill History


Senate File 2396

SENATE FILE BY NOBLE Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the establishment of and disbursement from a 2 property taxpayer rebate fund, providing appropriations, and 3 including an effective date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6096XS 82 6 sc/nh/5 PAG LIN 1 1 Section 1. Section 8.54, subsections 5 and 6, Code 2007, 1 2 are amended to read as follows: 1 3 5. For fiscal years in which section 8.55, subsection 2, 1 4 results in moneys being transferred to the general fund, the 1 5 original state general fund expenditure limitation amount 1 6 provided for in subsection 3 shall be readjusted to include 1 7 the moneys which are so transferred. 1 8 6. 5. The scope of the expenditure limitation under 1 9 subsection 3 shall not encompass federal funds, donations, 1 10 constitutionally dedicated moneys, and moneys in expenditures 1 11 from state retirement system moneys, and moneys disbursed from 1 12 the property taxpayer rebate fund pursuant to section 8.55A. 1 13 Sec. 2. Section 8.55, subsection 2, Code 2007, is amended 1 14 to read as follows: 1 15 2. a. The maximum balance of the fund is the amount equal 1 16 to two and one=half percent of the adjusted revenue estimate 1 17 for the fiscal year. If the amount of moneys in the Iowa 1 18 economic emergency fund is equal to the maximum balance, 1 19 moneys in excess of this amount shall be transferred to the 1 20 general fund property taxpayer rebate fund established in 1 21 section 8.55A. 1 22 b. Notwithstanding paragraph "a", any moneys in excess of 1 23 the maximum balance in the economic emergency fund after the 1 24 distribution of the surplus in the general fund of the state 1 25 at the conclusion of each fiscal year shall not be transferred 1 26 to the general fund of the state property taxpayer rebate fund 1 27 but shall be transferred to the senior living trust fund. The 1 28 total amount appropriated, reverted, or transferred, in the 1 29 aggregate, under this paragraph, section 8.57, subsection 2, 1 30 and any other law providing for an appropriation or reversion 1 31 or transfer of an appropriation to the credit of the senior 1 32 living trust fund, for all fiscal years beginning on or after 1 33 July 1, 2004, shall not exceed the amount specified in section 1 34 8.57, subsection 2, paragraph "c". 1 35 Sec. 3. NEW SECTION. 8.55A PROPERTY TAXPAYER REBATE 2 1 FUND. 2 2 1. a. A property taxpayer rebate fund is created in the 2 3 state treasury. The property taxpayer rebate fund shall be 2 4 separate from the general fund of the state and shall not be 2 5 considered part of the general fund of the state. The moneys 2 6 in the property taxpayer rebate fund are not subject to 2 7 section 8.33 and shall not be transferred, used, obligated, 2 8 appropriated, or otherwise encumbered except as provided in 2 9 this section. Notwithstanding section 12C.7, subsection 2, 2 10 interest or earnings on moneys deposited in the property 2 11 taxpayer rebate fund shall be credited to the fund. Moneys in 2 12 the property taxpayer rebate fund may be used for cash flow 2 13 purposes during a fiscal year provided that any moneys so 2 14 allocated are returned to the property taxpayer rebate fund by 2 15 the end of that fiscal year. 2 16 b. In addition to the amounts transferred to the property 2 17 taxpayer rebate fund pursuant to section 8.55, subsection 2, 2 18 the general assembly shall annually appropriate for deposit to 2 19 the fund an amount equal to the product of the balance in the 2 20 fund as of the previous June 30 times the consumer price 2 21 index. For purposes of this paragraph, "consumer price index" 2 22 means the consumer price index for the midwest region, as 2 23 published in the federal register by the United States 2 24 department of labor, bureau of labor statistics. 2 25 c. In addition to the amounts transferred to the property 2 26 taxpayer rebate fund pursuant to section 8.55, subsection 2, 2 27 and the amounts appropriated pursuant to paragraph "b", the 2 28 general assembly, for any fiscal year, may appropriate moneys 2 29 to the fund. 2 30 2. a. There is appropriated for a fiscal year in which 2 31 the fund balance reaches at least fifty million dollars to the 2 32 director of revenue the total sum in the fund to be used as 2 33 provided in paragraph "c". 2 34 b. By September 15 of the fiscal year, the director of 2 35 revenue shall notify the county treasurer in each county that 3 1 an appropriation pursuant to paragraph "a" was made. 3 2 c. By October 15 of the fiscal year, the county treasurers 3 3 shall certify to the department of revenue the amount of 3 4 property taxes collected in the previous fiscal year. By 3 5 November 15 of the fiscal year, the department shall issue to 3 6 the county treasurer of each county an amount equal to the pro 3 7 rata percentage of the total amount certified by all the 3 8 treasurers and the amount certified for that county. 3 9 d. The county treasurer shall apply the amount received as 3 10 either a credit on the property taxes due the following March 3 11 or shall issue a rebate check to each property taxpayer no 3 12 later than the following April 15. Each property taxpayer in 3 13 the county shall receive a credit or rebate in an amount equal 3 14 to the pro rata percentage of the property taxes paid by the 3 15 taxpayer in the previous fiscal year and the total amount of 3 16 property taxes certified in the county for that fiscal year. 3 17 3. a. In addition to the appropriation made in subsection 3 18 2, the moneys in the property taxpayer rebate fund may be used 3 19 for cash flow purposes pursuant to an appropriation made by 3 20 the general assembly. The appropriation shall be made in 3 21 accordance with this subsection only for the fiscal year in 3 22 which the appropriation is made. The moneys shall only be 3 23 appropriated by the general assembly for nonrecurring 3 24 emergency expenditures and shall not be appropriated for 3 25 payment of any collective bargaining agreement or arbitrator's 3 26 decision negotiated or awarded under chapter 20. Except as 3 27 provided in section 8.58, the property taxpayer rebate fund 3 28 shall be considered a special account for the purposes of 3 29 section 8.53 in determining the cash position of the general 3 30 fund of the state for the payment of state obligations. 3 31 b. Except as provided in subsection 2, an appropriation 3 32 shall not be made from the property taxpayer rebate fund 3 33 unless the appropriation is in accordance with all of the 3 34 following: 3 35 (1) The appropriation is contained in a bill or joint 4 1 resolution in which the appropriation is the only subject 4 2 matter of the bill or joint resolution. 4 3 (2) The bill or joint resolution states the reasons the 4 4 appropriation is necessary. 4 5 c. In addition to the requirements of paragraph "b", an 4 6 appropriation shall not be made from the property taxpayer 4 7 rebate fund unless the bill or joint resolution is approved by 4 8 vote of at least two=thirds of the members of both chambers of 4 9 the general assembly and is signed by the governor. 4 10 Sec. 4. Section 8.58, Code 2007, is amended to read as 4 11 follows: 4 12 8.58 EXEMPTION FROM AUTOMATIC APPLICATION. 4 13 To the extent that moneys appropriated under section 8.57 4 14 do not result in moneys being credited to the general fund 4 15 under section 8.55, subsection 2, moneys Moneys appropriated 4 16 under section 8.57 and moneys contained in the cash reserve 4 17 fund, rebuild Iowa infrastructure fund, environment first 4 18 fund, and Iowa economic emergency fund, and property taxpayer 4 19 rebate fund shall not be considered in the application of any 4 20 formula, index, or other statutory triggering mechanism which 4 21 would affect appropriations, payments, or taxation rates, 4 22 contrary provisions of the Code notwithstanding. 4 23 To the extent that moneys appropriated under section 8.57 4 24 do not result in moneys being credited to the general fund 4 25 under section 8.55, subsection 2, moneys Moneys appropriated 4 26 under section 8.57 and moneys contained in the cash reserve 4 27 fund, rebuild Iowa infrastructure fund, environment first 4 28 fund, and Iowa economic emergency fund, and property taxpayer 4 29 rebate fund shall not be considered by an arbitrator or in 4 30 negotiations under chapter 20. 4 31 Sec. 5. EFFECTIVE DATE. This Act takes effect January 1, 4 32 2009. 4 33 EXPLANATION 4 34 This bill establishes a property taxpayer rebate fund. 4 35 Moneys in the economic emergency fund in excess of the limit 5 1 of the fund and after payment of certain amounts to the senior 5 2 living trust fund are to be deposited into the property 5 3 taxpayer rebate fund. Present law requires such excess to be 5 4 deposited into the state general fund. 5 5 The bill also provides that an appropriation shall be made 5 6 to the fund annually in an amount equal to the product of the 5 7 balance in the fund on the previous June 30 times the consumer 5 8 price index. The bill defines "consumer price index". The 5 9 bill also provides that the general assembly may make further 5 10 appropriations to the fund in its discretion. 5 11 Once the balance of the property taxpayer rebate fund 5 12 reaches $50 million, the fund is to be rebated to the property 5 13 taxpayers based on property taxes paid in the previous year. 5 14 The bill allows the general assembly to make an 5 15 appropriation from the fund for cash flow purposes but only if 5 16 the appropriation is for nonrecurring emergency expenditures, 5 17 made for the fiscal year in which the appropriation is made, 5 18 is the only subject matter of the bill, and is approved by at 5 19 least two=thirds of the members of each house and signed by 5 20 the governor. 5 21 The bill takes effect January 1, 2009. 5 22 LSB 6096XS 82 5 23 sc/nh/5
Text: SF2395            Text: SF2397 Complete Bill History