Iowa Administrative Code › Agency 701 - Revenue Department › Title III - Sales, Use, and Excise Tax › Chapter 270 - Local Option Sales and Services Tax › Rule 701-270.8 - Local Option Sales and Services Tax Payments to Local Governments

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
County-imposed local sales and services tax; division of funds from
				accounts.
Division of the amount from each county's account to be
				distributed is done with these steps.
a. The
				total amount in the county's account to be distributed is first divided into
				two parts. One part is equal to 75 percent of the total amount to be
				distributed. The second part is the remainder to be distributed.
b. The part comprised of 75 percent of the
				total receipts to be distributed is further divided into an amount for each
				participating city or unincorporated area. This division is based upon the most
				recent certified federal census population and any subsequent certified census.
				Population for each participating city and unincorporated area is determined
				separately and totaled. The population for each sales tax-imposing city or
				unincorporated area is divided by the total population to produce a percentage
				for each city or the unincorporated area. The percentages are rounded to the
				nearest one-hundredth of a percent with the total of all percentages equal to
				100 percent. Each government's percentage is multiplied by 75 percent of the
				sales tax receipts to be distributed. Distributions are to be rounded to the
				nearest cent.
There are two types of certified federal censuses. The first
				  is the usual decennial census that is always conducted throughout the entire
				  area of any county imposing a local option sales tax.
The second type of certified federal census is the "interim"
				  or "subsequent" census that is conducted between decennial censuses. An interim
				  or subsequent census is not necessarily conducted within an entire county but
				  may be used to count increases or decreases in only one or some of the
				  jurisdictions within that county, for instance, one particular municipality. If
				  an interim census is conducted within only certain participating jurisdictions
				  of a county where a local option sales tax is imposed, the changes in
				  population which that census reflects must be included within both the
				  numerator and the denominator of the fraction that is used to compute the
				  participating jurisdiction's share of the revenue from the county's account
				  that is based on county population. Example 3 of this rule contains a
				  demonstration of how an interim census can affect a population distribution
				  formula.
c. The remaining 25
				percent of the amount to be distributed is further divided based upon property
				taxes levied. The sum of property tax dollars to be used is the amount levied
				for the three years from July 1, 1982, through June 30, 1985, as obtained by
				using data from county tax rate reports and city tax rate reports compiled by
				the department of management. Property taxes levied by participating cities or
				the board of supervisors, if the local sales tax is imposed in unincorporated
				areas, are to be determined separately, then totaled. The property tax amount
				for each sales tax-imposing city and the board of supervisors, if the sales tax
				is imposed in unincorporated areas, is divided by the totaled property tax to
				produce a percentage. The percentages are rounded to the nearest one-hundredth
				of a percent with the total of all percentages equal to 100 percent. Each
				percentage is multiplied by 25 percent of the sales tax receipts to be
				distributed. Distributions are to be rounded to the nearest cent.
d. For each participating city, or the board
				of supervisors if unincorporated areas of the county participate, the amount
				determined in paragraph 270.8(1)
"c"
is added to the amount
				found in paragraph 270.8(1)
"b."
This amount is then to be
				remitted to the appropriate local government.
In order to illustrate the division of local option sales and
				  services tax receipts, the following examples are provided. The numbers are
				  shown in an attempt to reflect reality but are hypothetical.
EXAMPLE 1: If a local option sales tax is approved for all of
				  Pottawattamie County, the distribution of $100,000 in countywide receipts would
				  be made in this manner:
Step 1:
Distribution Basis
Amount
Population
$ 75,000.00
Property Taxes Levied
25,000.00
Total
$100,000.00
Step 2:
Certified Population
Receipts to be
Jurisdiction
Number
Percentage
Distributed
Avoca
1,650
1.91%
$ 1,432.50
Carson
716
0.83%
622.50
Carter Lake
3,438
3.98%
2,985.00
Council Bluffs
56,449
65.30%
48,975.00
Crescent
547
0.63%
472.50
Hancock
254
0.29%
217.50
Macedonia
279
0.32%
240.00
McClelland
177
0.20%
150.00
Minden
419
0.49%
367.50
Neola
839
0.97%
727.50
Oakland
1,552
1.80%
1,350.00
Treynor
981
1.13%
847.50
Underwood
448
0.52%
390.00
Walnut
897
1.04%
780.00
Unincorporated
17,796
20.59%
15,442.50
Total
86,442
100.00%
$75,000.00
Note: The portion of the city of Shelby in Pottawattamie
				  County is excluded. Step 3:
Three-Year Total Taxes Levied
Receipts to be
Jurisdiction
Amount
Percentage
Distributed
Avoca
$ 454,556
0.82%
$ 205.00
Carson
202,882
0.37%
92.50
Carter Lake
946,026
1.71%
427.50
Council Bluffs
30,290,732
54.81%
13,702.50
Crescent
7,732
0.01%
2.50
Hancock
56,705
0.10%
25.00
Macedonia
64,504
0.12%
30.00
McClelland
24,300
0.04%
10.00
Minden
155,112
0.28%
70.00
Neola
206,560
0.38%
95.00
Oakland
319,153
0.58%
145.00
Treynor
346,849
0.63%
157.50
Underwood
139,571
0.25%
62.50
Walnut
264,145
0.48%
120.00
Unincorporated
21,782,457
39.42%
9,855.00
Total
$55,262,284
100.00%
$25,000.00
Step 4:
Amount to be Distributed
Total
Jurisdiction
By Population
By Taxes
Distribution
Avoca
$ 1,432.50
$ 205.00
$ 1,637.50
Carson
622.50
92.50
715.00
Carter Lake
2,985.00
427.50
3,412.50
Council Bluffs
48,975.00
13,702.50
62,677.50
Crescent
472.50
2.50
475.00
Hancock
217.50
25.00
242.50
Macedonia
240.00
30.00
270.00
McClelland
150.00
10.00
160.00
Minden
367.50
70.00
437.50
Neola
727.50
95.00
822.50
Oakland
1,350.00
145.00
1,495.00
Treynor
847.50
157.50
1,005.00
Underwood
390.00
62.50
452.50
Walnut
780.00
120.00
900.00
Unincorporated
15,442.50
9,855.00
25,297.50
Total
$75,000.00
$25,000.00
$100,000.00
EXAMPLE 2: If a local option sales tax is approved for Avoca,
				  Oakland and Treynor in Pottawattamie County and $10,000 is to be distributed,
				  the distribution would be made in this manner:
Step 1:
Distribution Basis
Amount
Population
$ 7,500.00
Property Taxes Levied
2,500.00
Total
$10,000.00
Step 2:
Certified Population
Receipts to be
Jurisdiction
Number
Percentage
Distributed
Avoca
1,650
39.45%
$2,958.75
Oakland
1,552
37.10%
2,782.50
Treynor
981
23.45%
1,758.75
Total
4,183
100.00%
$7,500.00
Step 3:
Three-Year Total Taxes Levied
Receipts to be
Jurisdiction
Amount
Percentage
Distributed
Avoca
$ 454,556
40.56%
$1,014.00
Oakland
319,153
28.48%
712.00
Treynor
346,849
30.96%
774.50
Total
$1,120,558
100.00%
$2,500.00
Step 4:
Amount to be Distributed
Total
Jurisdiction
By Population
By Taxes
Distribution
Avoca
$2,958.75
$1,014.00
$ 3,972.75
Oakland
2,782.50
712.00
3,494.50
Treynor
1,758.75
774.00
2,532.75
Total
$7,500.00
$2,500.00
$10,000.00
EXAMPLE 3: For the purposes of understanding this example,
				  assume that the numbers for "certified population" from Step 2 of Example 2
				  immediately above are derived from the 1990 decennial census. Assume further
				  that in 1993 an interim census is conducted by the Bureau of the Census in
				  Avoca and Oakland only, and nowhere else in Pottawattamie County. As a result
				  of that interim census, the Bureau of the Census certifies the population of
				  Avoca to be 1,752 and the population of Oakland to be 1,493. The cities'
				  percentages of receipts to be distributed are recomputed in the following
				  manner:
Avoca's Percentage Equals 1752 / 1752 + 1493 + 981 =
				  41.45%
Oakland's Percentage Equals 1493 / 1493 + 1752 + 981 =
				  35.32%
Amounts in Step 2 are then revised as follows:
Certified Population
Receipts to be
Jurisdiction
Number
Percentage
Distributed
Avoca
1,752
41.46%
$3,109.50
Oakland
1,493
35.33%
2,649.75
Treynor
981
23.21%
1,740.75
Total
4,226
100.00%
$7,500.00
The "amount to be distributed by population" found in Step 4
				  of Example 2 would then be recomputed based on the new figures.