Local Option Sales Tax Revenue Purpose Statement Election
On July 12, the Board approved a resolution to seek voter approval to renew the district’s Revenue Purpose Statement (RPS), during the upcoming November elections.
A Revenue Purpose Statement (RPS) is simply a ballot measure that describes how school districts can spend the penny sales tax (SAVE) funds the State provides to them. It does not affect local tax rates.
In 2019, the Iowa legislature extended the penny sales tax for school infrastructure through 2050. Our Sales Tax Revenue Purpose Statement expires on January 1, 2031, so we have to have voter approval to use these funds in the future. A new revenue purpose statement would last for the duration of the penny sales tax.
Again, renewing our Revenue Purpose Statement will not raise taxes. The penny sales tax that funds SAVE will be collected across the state regardless of whether the measure is approved. This vote simply allows us to access the funds and describes the manner in which we may use them. Generally, they are used for construction, renovations, general maintenance, safety and security, and technology infrastructure.
The RPS specifies the following uses of the Secure an Advanced Vision for Education (SAVE) Fund:
· To provide funds to acquire or install information technology infrastructure (including improving buildings or sites for the purpose of accessing broadband digital telecommunications) and school safety and security infrastructure.
· To provide funds to build and furnish a new school building or buildings; to build and furnish addition(s) to school buildings in the District; to remodel, reconstruct, repair, expand, and improve the school buildings in the District; to purchase and improve grounds; for demolition work; to furnish and equip district facilities.
· To provide funds for the purchase, lease or lease-purchase of buildings, equipment (including transportation and recreation equipment), or technology and to repair transportation equipment for transporting students as authorized by law, to implement energy conservation measures, sharing or rental of facilities including a joint infrastructure project for the purposes of offering classes under district-to-community college programs as authorized in Iowa Code Section 423F.3(3)(c), procuring or acquisition of libraries, or opening roads to schoolhouses or buildings.
· To provide funds to purchase land as part of start-up costs for new student construction program or if the sale of the previous student construction was insufficient to purchase land, and to purchase construction materials and supplies for a student-constructed building or shed intended to be retained by and used by the District.
· To provide funds to make payments to a municipality or other entity as required under Iowa Code Section 403.19(2).
· To provide funds for demolition, cleanup, and other costs if such costs are necessitated by, and incurred within two years of, a disaster.
· To provide funds to establish and maintain public recreation places and playgrounds; provide for supervision and instruction for recreational activities; or for community education purposes.
· To provide funds for the payment of principal and interest or retirement of general obligation bonds issued for school infrastructure purposes, energy improvement loans, loan agreements authorized by Iowa Code Section 297.36, sales, service and use tax revenue bonds issued under Iowa Code Section 423E.5 or Iowa Code Section 423F.4.
· To provide funds for property tax relief; and
To provide funds for other authorized expenditures and purposes as now or hereafter permitted by law and designated by the Red Oak Community School.
Please find below the Notice of Election that was published in the county newspapers:
Montgomery County Notice of Election
Page County Notice of Election