SILO (School Infrastructure Local Option) Tax Election Timeline* Days before Event Election 90 days Max time between filing motions with auditor and election date, unless election would fall on a prohibited date. The auditor consults with school boards and supervisors and governing bodies to set election date. 75 days Minimum time between filing motions and election date. 70 days Last day for auditor to receive ballot information. 60 days Last day to publish notice of ballot proposition. One ballot shall be used throughout the county. 60 days Last day for auditor to receive revenue purpose statements from districts with resident pupils in the county of election. 20 days First day to publish election notice and revenue purpose statements. 10 days Last day to publish revenue purpose statements. 10 days after Send, by certified mail, a copy of the abstract election of votes to the director of the department of At least 90 days after election revenue. First day to begin collection of revenue must be either Jan. 1 or July 1. To begin collection on Jan. 1, last election date is April 1 or the previous Tuesday if April 1 is not a Tuesday. Responsible Entity Motion passed by school board and filed with county auditor s office School district Dept. of Revenue and Finance *Same timelines apply for countywide election on change of rate, extension or repeal of a SILO, or district-wide election of change of use (new revenue purpose statement).
School Infrastructure Local Option Tax Iowa Code 423E.1-6 SILO May 2004 The school infrastructure local option tax (SILO Tax) is comprised of a maximum one-cent tax on all non-exempt goods and services sold in the county in which the tax has been approved. Exempt goods and services include unprepared food, automobiles, motor fuel, prescription drugs, lottery tickets, hotels, Department of Transportation equipment, and agricultural and farm machinery and equipment, resale items, self-propelled building equipment or any other sales exempted from State of Iowa sales tax collection in Iowa Code 422.45. A SILO tax can be adopted by: 1. Determine the amount of, not to exceed one cent, the time period, not to exceed, 10 years and the purposes for which the tax will be used in one of the following ways: a. One or more school boards equal to one-half of the county s population or the board of supervisors by motion; b. The board of supervisors by motion; or c. The public through a petition signed by eligible voters equal to five percent of those voting in the last general election submitted to the board of supervisors. 2. Direct the county commissioner of elections to call an election to approve the levy for the amount and the length of time determined by the school boards, board of supervisors or the petition. The board of supervisors must within 30 days of receiving a petition direct county commissioner of elections to hold the election. The election is held at the state general election or a special election any time other than at the time of a city special election. The election may be held at any time but not sooner than 60 days following publication of the ballot proposition. 3. Each school district in the county may submit a Revenue Purpose Statement to the county auditor at least 60 days prior to the election. The statement may be more specific than the ballot language and may include property tax relief for debt or the Physical Plant and Equipment levy (PPEL). The statement must be made available at the polling place and published in a newspaper of general circulation no sooner than 20 days and no later than 10 days prior to the election. A change of use election may be undertaken to change the intended revenue purpose for a specific school district. 4. The effective date shall be either January 1 or July 1, but not sooner than 90 days following the favorable election. 5. Upon approval of a majority of the voters voting in the county, the tax is collected for the amount and the time period approved by the voters. 6. Repeal, increase or reduction of the tax, or the change of use election, must follow the same manner as the adoption and any outstanding bonds must be provided for prior to repeal. 7. Certifying the tax as approved by the voters to the county auditor and DE by April 15 as part of the school district's budget. Uses for SILO Tax Funds Uses for SILO tax funds and interest are limited to infrastructure purposes, including: 1. Construction, Reconstruction, Repair, or Demolition. 2. Purchasing or remodeling schoolhouses, stadiums, gyms, fieldhouses and bus garages. 3. Procurement of schoolhouse construction sites and making of site improvements. 4. Payment or retirement of bonds issued for school infrastructure purposes. 5. Payment of 10-year negotiable interest-bearing bonds issued by school board action. 6. Any lawful physical plant and equipment levy purpose (equipment, computers, buses, leasepurchase) or public education and recreation levy purpose (adult education, playgrounds, etc.)
SILO May 2004 Revenue Payments School districts approving the SILO tax will receive funds from the Department of Revenue and Finance in monthly installments, with 95 percent of estimated revenues received prior to August 31 each year, and the final payment made prior to November 10 after the close of the fiscal year. The Department s Director may revise estimated revenue monthly. The funds are distributed among school districts in the county based on the county of residence for a school district s actual enrollment. Taxes may initially be collected beginning on January 1 or July 1, a minimum of 90 days following voter approval. Supplemental payments from the state, if appropriated or paid into the Secure an Advanced Vision for Education (SAVE) Fund, may be made to districts with SILO revenue below the statewide average. Supplemental appropriations begin in the year beginning July 1, 2004. If sufficient funds are not available to bring every participating district up to the statewide average, the fund balance is prorated. The SAVE fund and all subsequent SILO taxes sunset on December 31, 2022, as specified by SF 445 enacted in the 2003 legislative session. Exemptions The SILO tax is applied to purchases the same way the state sales tax, meaning that everything taxed at the 5 th penny for state sales tax is likewise taxed for local option. One major exception is residential utilities, taxed by local option, but the state sales tax for residential utilities is being phased out. As an example of excluded items, since farm machinery and equipment is excluded from state sales tax, it is also excluded from local option. There are a few items specifically excluded from SILO tax collection. Collection of SILO tax on the following items is specifically excluded: Sales on motor vehicles (use tax, not a sales tax) Motor fuel or special fuel Hotel or motel room rental if a hotel/motel tax is assessed State lottery tickets Equipment sold by the Iowa Department of Transportation Unprepared Food and Pharmaceuticals Resale items Utilities if a Franchise Tax or User Fee already is assessed **This document is provided for information purposes only. Prior to Board action on this matter, be sure to have your school attorney review any and all related documents.
SILO June 2003 School Infrastructure Local Option Tax Resolution of Election Director introduced and caused to be read the Resolution hereinafter set out and moved its adoption; seconded by Director ; after due consideration thereof by the Board, the President put the question upon the adoption of said Resolution and, the roll being called, the following Directors voted: Aye: Nay: Whereupon the President declared said Resolution duly adopted as follows: RESOLUTION WHEREAS, the Board deems it necessary and desirable to provide additional funding for the Community School District pursuant to the School Infrastructure Local Option Tax WHEREAS, (add other reasons) ; WHEREAS, the Board wishes to take action to adopt a Resolution of Election directing an election on the question of participating in the School Infrastructure Local Option Tax; NOW, THEREFORE, be it resolved by the Board: Section 1: That the Board Secretary is hereby authorized to direct the County Commissioner of Elections to submit the question of participation in the School Infrastructure Local Option Tax ballot question to the qualified electors of the County on (date) on the following proposition: Shall the county of, State of Iowa, be authorized to impose a (maximum one percent) school infrastructure local option sales tax for school infrastructure projects for (maximum ten) years, beginning on (month, day, year) and ending on (month, day, year) to be used for infrastructure purposes and needs of school districts in (county name) including construction, reconstruction, repair, demolition work, purchasing, or remodeling of schoolhouses, stadiums, gyms, field houses, and bus garages and the procurement of schoolhouse construction sites, the making of site improvements as authorized now or hereafter by the Code of Iowa, and those equipment, transportation equipment, and public recreation and other activities for which revenues under Iowa Code sections 298.3 or 300.2 may be spent as authorized now or hereafter by the Code of Iowa.. Additionally, school infrastructure includes the payment or retirement of outstanding bonds previously issued for school infrastructure purposes and the payment or retirement of new bonds issued for school infrastructure purposes issued under section 423E.4, Code of Iowa.
SILO June 2003 SILO Tax Resolution of Election Page 2 Section 2: That all resolutions or orders or parts thereof in conflict herewith be and the same are hereby repealed to the extent of such conflict. Passed and approved (date). Attest: Board President Board Secretary **This document is provided for information purposes only. Prior to Board action on this matter, be sure to have your school attorney review any and all related documents.