Session Week 11
Fax: 563-355-9954

Local Option Sales Tax Debated in Ways and Means

The Ways and Means Committee has voted 16-9 to approve a proposed strike everything amendment to House File 571.  The amendment creates a mechanism to permit all school districts passing the sales tax to receive proceeds not less than the statewide average of $575 per pupil.  This amendment does not include funding to permit all districts to reach the proposed state average.

The amendment:

·         Expands the use of sales tax to include the physical plant and equipment levy (PPEL) and the educational and recreation levy (PERL).   The PPEL uses would permit the purchase of buses and technology.  

·         Permits the county to decide the occurrence and the date of any desired vote.  

·         Requires the ballot proposition to be substantially similar to the petition to the board of supervisors or the motions of the school district

·         Permits, but does not require, the school district to submit a revenue purpose statement at least 60 days prior to the election delineating the specific purposes for the proceeds of the tax.  The statement is included at the polling place and published in the newspaper.

·         Defaults proceeds automatically to property tax if no revenue purpose statement is included on the ballot.  The ballot is not required to mention the default position.  

·         Permits districts passing the tax between April 1, 2003 and June 30, 2003 to use revenues for the newly expanded purposes. 

·         Requires a vote to change the purpose for use of the revenue;

·         Creates the Secure an Advanced Vision for Education fund (SAVE fund) [in Section 8, pages 5-8].    All proceeds are deposited into this fund and are distributed as follows:

Districts that already have School Infrastructure Local Option Tax (SILO)

·         If above the state average, the district receives funding under the current law distribution (per pupil based upon number of students in county) until the SILO expires. 

·         The supplemental must be first used to buy down existing debt and, then, for any authorized infrastructure purpose absent a vote of the district patrons.

Districts that do not currently have SILO    (passed after April 1, 2003)

·         If above the state average, then receive the state average per pupil amount.

·         If below the state average, then receive per pupil generated by the tax for the county plus a supplemental to bring the district up to the state average.  The funds must be used according to the voter approved revenue purpose statement or, in the absence of a statement, to buy down existing debt.    Exception:  Counties passing the tax between April 1 and June 30, 2003, may use the tax for any authorized purpose.  No separate revenue purpose statement is required.

Districts that seek continuation of SILO

·         If above the state average, then receive the state average per pupil amount.

·         If below the state average, then receive per pupil amount generated by the tax plus a supplemental to bring the district up to the state average.  The funds must be used according the voter approved revenue purpose statement or, in the absence of a statement, to buy down existing debt.

  Ways & Means Update

Bills passed out of Ways & Means this week:
HF 571—A bill for an act relating to the establishment of a school infrastructure financing program.

Bill Assigned in Ways & Means this week:

HF 291—A bill for an act relating to motor vehicle parking violations

SF 275—A bill for an act relating to the taxation of utilities

HSB 302—A study bill repealing the state guarantee to fully fund certain property tax credits or exemptions

HSB 303—A study bill establishing a commission on state and local taxation

   Week in Review Archives

2003 Session
03-21-03
03-14-03
03-07-03
02-28-03
02-21-03
02-14-03
02-07-03
01-31-03
01-17-03
01-24-03

2002 Session
05-28-02 Special Session II 
05-10-02 Special Edition
04-22-02 Special Session I
04-12-02
04-05-02
03-29-02
03-22-02
03-15-02
03-08-02
03-01-02
02-22-02
02-15-02
02-08-02
02-01-02
01-25-02
01-18-02

2001 Session
05-04-01
04-27-01
04-20-01
04-13-01
04-06-01
03-30-01
03-23-01
03-16-01
03-09-01
03-02-01
02-23-01
02-16-01
02-09-01
02-02-01
01-26-01
01-19-01
01-12-01

2000 Session
04-28-00
04-21-00
04-14-00
04-07-00
03-31-00
03-24-00
03-17-00
03-10-00
03-03-00
02-25-00