Iowa Admin. Code r. 701-270.8
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.
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 | |||
Jurisdiction | Number | Percentage | Receipts to be 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 | |||
Jurisdiction | Amount | Percentage | Receipts to be 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 | |||
Jurisdiction | By Population | By Taxes | Total 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 | |||
Jurisdiction | Number | Percentage | Receipts to be 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 | |||
Jurisdiction | Amount | Percentage | Receipts to be 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 | |||
Jurisdiction | By Population | By Taxes | Total 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:
Amounts in Step 2 are then revised as follows:
Certified Population | |||
Jurisdiction | Number | Percentage | Receipts to be 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.
This rule is intended to implement Iowa Code section 423B.7.
Iowa Admin. Code r. 701-270.8
ARC 7623C, IAB 2/7/24, effective 3/13/24