Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 273 - Reinvestment Districts Program › Rule 701-273.5 - Reinvestment Project Fund

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Reinvestment project fund
				deposits.
State sales tax revenue and state hotel and motel tax
				revenue remitted by the department to a municipality pursuant to Iowa Code
				section
				15J.6
				shall be deposited in a reinvestment project fund of the municipality and shall
				be used to fund projects within the district from which the revenues were
				collected. If the municipality determines that the revenue accruing to the
				reinvestment project fund exceeds the amount necessary for these purposes, the
				excess moneys that are remittances received under Iowa Code section
				15J.6
				and all interest in the fund attributable to such excess amounts shall be
				remitted by the municipality to the department for deposit in the general fund
				of the state.
(2)
Other
				funds.
In addition to the moneys received pursuant to subrule
				237.4(1), a municipality may deposit in the reinvestment project fund any other
				moneys lawfully at the municipality's disposal, including but not limited to
				local sales and services tax receipts collected under Iowa Code chapter 423B if
				such use is a purpose authorized for the municipality under Iowa Code chapter
				423B.
(3)
Use of
				funds.
Moneys from any source deposited into the reinvestment project
				fund shall not be expended for or otherwise used in connection with a project
				that includes the relocation of a commercial or industrial enterprise not
				presently located within the municipality.
For the purposes of this subrule, "relocation" means the
				  closure or substantial reduction of an enterprise's existing operations in one
				  area of the state and the initiation of substantially the same operation in the
				  same county or a contiguous county in the state. "Relocation" does not include
				  an enterprise expanding its operations in another area of the state provided
				  that existing operations of a similar nature are not closed or substantially
				  reduced.
(4)
Remittance of unused funds.
Upon dissolution of a district
				pursuant to rule 701-237.6 (15J), if moneys
				remitted to the municipality pursuant to subrule 237.4(1) remain in the
				municipality's reinvestment project fund and those moneys are not necessary to
				support completion of a project in the dissolved district, such amounts and all
				interest remaining in the fund that was earned on such amounts shall be
				remitted by the municipality to the department for deposit in the general fund
				of the state.
Upon dissolution of a district pursuant to rule
				  701-237.6 (15J), moneys
				  remaining in the reinvestment project fund that were deposited pursuant to
				  subrule 237.5(2) and all interest remaining in the fund that was earned on such
				  amounts shall be deposited in the general fund of the
				  municipality.
(5)
Audit of records.
The records of the municipality related to
				the district and the reinvestment project fund are subject to audit by the
				department or the auditor of state.
This rule is intended to implement Iowa Code section
				  15J.7.