Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 272 - Flood Mitigation Program › Rule 701-272.4 - Sales Tax Increment Fund

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Establishment of the sales tax
				increment fund.
A sales tax increment fund is established as a
				separate and distinct fund in the state treasury under the control of the
				department. The fund consists of the amount of the increased state sales and
				services tax revenues collected by the department within each applicable area
				specified in Iowa Code section
				418.11(3)
				 and deposited in the fund pursuant to Iowa
				Code section 423.2(11)
"b."
Moneys deposited in the fund are
				appropriated to the department for the purposes of this rule. Moneys in the
				fund shall only be used for the purposes of this rule.
(2)
Sales tax increment
				accounts.
An account is created within the fund for each governmental
				entity that has adopted a resolution under Iowa Code section
				418.4(3)
"d."
(3)
Deposits into the sales tax increment fund.
The department
				shall deposit in the fund the moneys described in subrule 238.4(1) beginning
				the first day of the quarter following receipt of a resolution under Iowa Code
				section
				418.4(3)
"d."
However, in no case shall a sales tax increment be calculated under Iowa Code
				section
				418.11
				or such moneys be deposited in the fund under this rule prior to January 1,
				2014. Additionally, moneys will not be deposited in the fund before the period
				for processing returns for a given quarter is complete.
(4)
Requests for remittances;
				limitations.
a. Upon request of a
				governmental entity, the department shall remit the moneys in the governmental
				entity's account within the fund to the governmental entity for deposit in the
				governmental entity's flood project fund. Such requests shall be made not more
				than quarterly. Requests for remittance shall be submitted on forms prescribed
				by the department.
b. In lieu of
				quarterly requests, a governmental entity may submit a certified schedule of
				principal and interest payments on bonds issued under Iowa Code section
				418.4. If such a
				certified schedule is submitted, the department shall, subject to the
				remittance limitations of this chapter, remit from the governmental entity's
				account to the governmental entity for deposit in the governmental entity's
				flood project fund the amounts necessary for such principal and interest
				payments in accordance with the certified schedule.
c. A governmental entity shall not during any
				fiscal year receive remittances under this rule exceeding $15 million or 70
				percent of the total yearly amount of increased sales tax increment revenue in
				the governmental entity's applicable area and deposited in the governmental
				entity's account or the annual maximum amount established by the board pursuant
				to Iowa Code section
				418.9(4),
				whichever is less.
d. The total
				amount of remittances during any fiscal year for all governmental entities
				approved to use sales tax revenues under this chapter shall not exceed, in the
				aggregate, $30 million. Remittances from the department of revenue shall be
				deposited in the governmental entity's flood project fund under Iowa Code
				section
				418.13.
e. Each quarter, the department will transfer
				into the sales tax increment fund the full amount of the increased sales tax
				subject to the limitations stated in this rule. The director of the department
				may adjust the amount transferred during the year if it becomes apparent that
				the total amount transferred will exceed the limitations stated in this rule.
				If, when the total of all the transfers made to a governmental entity during
				the year is calculated at the end of the fiscal year, it is determined that the
				governmental entity received more than the maximum amount permissible under
				this rule, the department may withhold funds in the subsequent fiscal year to
				recoup the excess payments.
f. If
				the governmental entity has unused funds from a prior quarter in its account
				within the sales tax increment fund, subject to paragraphs
				238.4(4)
"a"
to
"e,"
those funds will be
				available in subsequent quarters so long as the amount is necessary for the
				purposes of this chapter.