House File 306 -H-1002 EnrolledAmend House File 306 ANas ACTfollows: RELATING TO PUBLIC SCHOOL FUNDING BY ESTABLISHING THE STATE PERCENT OF GROWTH AND THE CATEGORICAL STATE PERCENT OF GROWTH FOR THE BUDGET YEAR BEGINNING JULY 1, 2019, MODIFYING PROVISIONS RELATING TO THE PROPERTY TAX REPLACEMENT PAYMENTS, AND INCLUDING EFFECTIVE DATE PROVISIONS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

Section 1.

Section 257.8, subsections 1 and 2, Code 2019, are amended to read as follows:

StatePage percent1, ofafter growth.line 33 by inserting:

The<Sec. state percent of growth for the budget year beginning July 1, 2016, is two and twenty-five hundredths percent.

The___. state percent of growth for the budget year beginning July 1, 2017, is one and eleven hundredths percent.

TheSection state257.8, percentCode of2019, growthis foramended theby budgetadding yearthe beginningfollowing Julynew 1,subsection: 2018, is one percent.

TheNEW stateSUBSECTION. percent of growth for the budget year beginning July 1, 2019, is two and six hundredths percent.

The2A. state percent of growth for each subsequent budget year shall be established by statute which shall be enacted within thirty days of the transmission of the governor’s budget required by February 1 under section 8.21 during the regular legislative session beginning in the base year.

2.Complementary state aid —— calculation —— fund.

Categoricala. state percent of growth.

The categoricalcomplementary state percentaid offund growth for the budget year beginning July 1, 2016, is twocreated andin twenty-fivethe hundredthsstate percent.treasury.

The categoricalfund stateshall percentbe separate from the general fund of growththe forstate and the budgetbalance yearin Housethe Filefund 306,shall p.not be considered part of the balance of the general fund of the state.

2The beginningmoneys Julycredited 1,to 2017,the isfund oneare not subject to section 8.33 and elevenshall hundredthsnot percent.be transferred, used, obligated, appropriated, or otherwise encumbered except as provided in this section.

TheNotwithstanding categoricalsection state12C.7, percentsubsection of2, growthinterest foror earnings on moneys deposited in the budgettaxpayers yeartrust beginningfund Julyshall 1,be 2018,credited isto onethe percent.fund.

Theb. categorical state percent of growth for the budget year beginning July 1, 2019, is two and six hundredths percent.

TheFor categoricaleach statefiscal percentyear ofbeginning growthon foror eachafter budgetJuly year1, shall2019, bethere establishedis bycredited statuteto whichthe shallcomplementary bestate enactedaid withinfund thirtyfrom daysthe general fund of the transmissionstate an amount as calculated by the department of revenue equal to the governor’sdifference budgetbetween requiredthe byactual Februarynet 1income undertax revenues received from taxpayers subject to section 8.21422.4A during the regularfiscal legislativeyear sessionand beginningthe inestimated net income tax revenues the basestate year.would have received from those taxpayers during the fiscal year had such taxpayers calculated individual income tax liability under chapter 422, division II, without regard to section 422.4A.

Thec. categorical state percent of growth may include state percents of growth for the teacher salary supplement, the professional development supplement, the early intervention supplement, and the teacher leadership supplement.

Sec.Moneys in the complementary state aid fund shall only be used by the general assembly for purposes of funding increases in the state percent of growth under subsection 1 and the categorical state percent of growth under subsection 2.> 2.

2.Page 3, after line 7 by inserting:

Section<Sec. 257.16B, subsection 1, Code 2019, is amended to read as follows:

___.

NEW SECTION.

422.4A Tax calculation for certain high-income taxpayers.

Notwithstanding any other provision of law to the contrary, a taxpayer with an adjusted gross income of one million dollars HF306.136 (3) 88 -1- md/jh 1/2 or more, as calculated for federal income tax purposes under the Internal Revenue Code, shall calculate the tax imposed under this division II pursuant to chapter 422, division II, Code 2018.> 3.

Page 3, after line 9 by inserting:

<Sec.

___.

RETROACTIVE APPLICABILITY.

The following apply retroactively to January 1, 2019, for tax years beginning on or after that date:

ForThe eachsection fiscal year beginning on or after July 1, 2013 2017, there is appropriated from the general fund of the state to the department of education an amount necessary to make all school district property tax replacement payments under this section,Act asenacting calculatedsection in257.8, subsection 2.2A.

Sec.2.

3.The section of this Act enacting section 422.4A.> 4.

SectionTitle 257.16B,page, subsectionby 2,striking paragraphsline a,5 b,and c,inserting and<payments, d,establishing Codea 2019,complementary arestate amendedaid byfund, strikingand theincluding paragraphs.effective date and retroactive applicability provisions.> 5.

Sec.By renumbering as necessary.

4.______________________________ R.

SectionSMITH 257.16B,of subsectionBlack 2,Hawk paragraph______________________________ f,HALL unnumberedof paragraphWoodbury 1,HF306.136 Code(3) 2019,88 is-2- amendedmd/jh to2/2 read as follows:

For each the budget year beginning on or after July 1, 2018, the department of management shall calculate for each school district all of the following:

Sec.