House File 37
HOUSE FILE
BY STRUYK, REASONER, THOMAS, MURPHY,
OLDSON, WHITEAD, SMITH, LYKAM,
QUIRK, D. OLSON, MYERS, BUKTA,
MASCHER, CONNORS, KUHN,
GREIMANN, FOEGE, OSTERHAUS, WENDT,
MERTZ, FREVERT, WINCKLER,
COHOON, LENSING, STEVENS, MILLER,
PETERSEN, BERRY, GASKILL, JOCHUM,
SWAIM, HOGG, WHITAKER, FORD,
and McCARTHY
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the allowance of and reimbursement for the
2 homestead, agricultural land, military service, and elderly
3 and disabled property tax credits, making appropriations, and
4 providing an effective date.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 1189YH 80
7 mg/sh/8
PAG LIN
1 1 Section 1. HOMESTEAD TAX CREDIT.
1 2 1. 2002 Iowa Acts, chapter 1171, section 175, subsection
1 3 10, as amended by 2002 Iowa Acts, Second Extraordinary
1 4 Session, chapter 1003, section 181, is amended by striking the
1 5 subsection.
1 6 2. Additional funds available from the appropriation in
1 7 section 425.1, as a result of subsection 1 of this section of
1 8 this Act, shall be used to reimburse counties, to the extent
1 9 not previously reimbursed, that granted to taxpayers the
1 10 maximum allowable homestead credit pursuant to section 425.1.
1 11 Payments made pursuant to this subsection shall not be made
1 12 sooner than March 15, 2003.
1 13 3. Each county that did not grant the maximum homestead
1 14 credit allowed pursuant to section 425.1 shall grant a
1 15 carryover homestead credit. The carryover homestead credit
1 16 shall apply against taxes due and payable in the fiscal year
1 17 beginning July 1, 2003, to each property that was granted a
1 18 homestead credit for taxes due and payable in the fiscal year
1 19 beginning July 1, 2002. The carryover homestead credit shall
1 20 be granted whether the property continues to qualify for the
1 21 regular homestead credit for taxes due and payable in the
1 22 fiscal year beginning July 1, 2003. The amount of the
1 23 carryover credit equals the difference between the maximum
1 24 allowable homestead credit minus the actual amount of the
1 25 homestead credit granted for taxes due and payable in the
1 26 fiscal year beginning July 1, 2002. A county granting the
1 27 carryover homestead credit shall be reimbursed for the amount
1 28 of the carryover credit from a separate carryover homestead
1 29 credit fund. Payments made pursuant to this subsection shall
1 30 be made one=half on November 15, 2003, and one=half on March
1 31 15, 2004.
1 32 4. There is appropriated from the general fund of the
1 33 state to the department of revenue and finance for deposit
1 34 into the separate carryover homestead credit fund for the
1 35 fiscal year beginning July 1, 2002, and ending June 30, 2003,
2 1 an amount sufficient to reimburse counties as provided in
2 2 subsection 3. Notwithstanding section 8.33, any funds
2 3 remaining from the appropriation made in this subsection shall
2 4 not revert but shall be available for use as provided in this
2 5 section for the succeeding fiscal year.
2 6 Sec. 2. AGRICULTURAL LAND TAX CREDIT.
2 7 1. 2002 Iowa Acts, chapter 1171, section 175, subsection
2 8 11, as amended by 2002 Iowa Acts, Second Extraordinary
2 9 Session, chapter 1003, section 181, is amended by striking the
2 10 subsection.
2 11 2. Additional funds available from the appropriation in
2 12 section 426.1, as a result of subsection 1 of this section of
2 13 this Act, shall be used to reimburse counties for granting an
2 14 additional agricultural land tax credit as follows:
2 15 a. The director of revenue and finance shall compute a pro
2 16 rata percentage in the manner provided in section 426.7 based
2 17 upon the additional funds available and notify each county
2 18 auditor of this pro rata percentage.
2 19 b. Upon receipt of this pro rata percentage, the auditor
2 20 shall determine the amount to be credited to each tract of
2 21 agricultural land in the manner provided in section 426.8.
2 22 However, the credit shall be applied against taxes due and
2 23 payable in the fiscal year beginning July 1, 2003. This
2 24 credit is in addition to any other agricultural land tax
2 25 credit granted under chapter 426.
2 26 c. Payments made pursuant to this subsection shall be made
2 27 on July 15, 2003.
2 28 3. Additional funds available as a result of subsection 1
2 29 shall be deposited into a separate account in the agricultural
2 30 land credit fund and shall only be used as provided in
2 31 subsection 2. Notwithstanding sections 8.33 and 426.1, moneys
2 32 remaining in the agricultural land credit fund on June 30,
2 33 2003, shall not revert to the general fund of the state but
2 34 shall be used as provided in subsection 2 in the following
2 35 fiscal year.
3 1 Sec. 3. MILITARY SERVICE TAX CREDIT.
3 2 1. 2002 Iowa Acts, chapter 1171, section 175, subsection
3 3 12, is amended by striking the subsection.
3 4 2. The additional funds from the appropriation in section
3 5 426A.1A, as a result of subsection 1 of this section of this
3 6 Act, shall be used to reimburse those counties that granted
3 7 the maximum military service tax exemption authorized pursuant
3 8 to section 426A.11. The total amount each county shall
3 9 receive shall equal the maximum credit authorized in section
3 10 426A.2, less any amounts previously reimbursed. Payments made
3 11 pursuant to this section shall not be made sooner than March
3 12 15, 2003.
3 13 3. Each county that did not grant the maximum military
3 14 service tax exemption authorized pursuant to section 426A.11
3 15 shall grant an additional exemption to each designated
3 16 property equal to the difference between the maximum allowable
3 17 exemption and the actual exemption granted. This exemption
3 18 shall apply for taxes due and payable in the fiscal year
3 19 beginning July 1, 2003, and is in addition to any other
3 20 military service tax exemption granted. The county auditor
3 21 shall compute and submit the amount of military service tax
3 22 credits to the department of revenue and finance for the
3 23 exemptions granted under this subsection pursuant to section
3 24 426A.3. Payments made pursuant to this subsection shall be
3 25 made by October 1, 2003.
3 26 4. There is appropriated from the general fund of the
3 27 state to the department of revenue and finance for the fiscal
3 28 year beginning July 1, 2002, and ending June 30, 2003, an
3 29 amount sufficient to reimburse each county as provided in
3 30 subsection 3. Notwithstanding section 8.33, any funds
3 31 remaining from the appropriation made in this subsection shall
3 32 not revert but shall be available for use for the same purpose
3 33 for the succeeding fiscal year.
3 34 Sec. 4. ELDERLY AND DISABLED TAX CREDIT.
3 35 1. 2002 Iowa Acts, chapter 1171, section 176, as amended
4 1 by 2002 Iowa Acts, Second Extraordinary Session, chapter 1003,
4 2 section 182, is repealed.
4 3 2. Additional funds available from the appropriation in
4 4 section 425.39, as a result of subsection 1 of this section of
4 5 this Act, shall be used to reimburse counties, to the extent
4 6 not previously reimbursed, that granted to each taxpayer the
4 7 maximum elderly and disabled tax credit allowed that taxpayer
4 8 pursuant to section 425.23. Payments made pursuant to this
4 9 subsection shall not be made sooner than March 15, 2003.
4 10 3. Each county that did not grant the maximum elderly and
4 11 disabled tax credit allowed pursuant to section 425.23 to each
4 12 taxpayer shall grant a carryover elderly and disabled tax
4 13 credit. The carryover elderly and disabled tax credit shall
4 14 apply against taxes due and payable in the fiscal year
4 15 beginning July 1, 2003, to each property that was granted the
4 16 elderly and disabled tax credit for taxes due and payable in
4 17 the fiscal year beginning July 1, 2002. The carryover credit
4 18 shall be granted whether the property or taxpayer continues to
4 19 qualify for the elderly and disabled tax credit for taxes due
4 20 and payable in the fiscal year beginning July 1, 2003. The
4 21 amount of the carryover credit equals the difference between
4 22 the maximum allowable credit due the taxpayer minus the actual
4 23 amount of the credit granted the taxpayer for taxes due and
4 24 payable in the fiscal year beginning July 1, 2002. A county
4 25 granting the carryover tax credit shall be reimbursed for the
4 26 amount of the credit from a separate carryover elderly and
4 27 disabled tax credit fund. Payments made pursuant to this
4 28 subsection shall be made one=half on November 15, 2003, and
4 29 one=half on March 15, 2004.
4 30 4. There is appropriated from the general fund of the
4 31 state to the department of revenue and finance for deposit
4 32 into the separate carryover elderly and disabled tax credit
4 33 fund for the fiscal year beginning July 1, 2002, and ending
4 34 June 30, 2003, an amount sufficient to reimburse counties as
4 35 provided in subsection 3. Notwithstanding section 8.33, any
5 1 funds remaining from the appropriation made in this subsection
5 2 shall not revert but shall be available for use as provided in
5 3 this section for the succeeding fiscal year.
5 4 Sec. 5. EFFECTIVE DATE. This Act, being deemed of
5 5 immediate importance, takes effect upon enactment.
5 6 EXPLANATION
5 7 As a result of the 2002 regular and special sessions, the
5 8 homestead, agricultural land, military service, and elderly
5 9 and disabled tax credits were not funded at the level required
5 10 by Code. One of two options were taken by the counties. The
5 11 first was to grant the taxpayer the maximum credit allowed and
5 12 be reimbursed by the state for an amount less than the
5 13 reduction in taxes. This bill provides for an increase in
5 14 appropriations so that these counties will receive the amount
5 15 of reimbursement otherwise specified in the Code for fiscal
5 16 year 2002=2003. The second option was for counties to reduce
5 17 the credit granted so that the amount reimbursed would be
5 18 equal to the reduction in taxes. The bill requires these
5 19 counties to grant a carryover tax credit to be applied to
5 20 taxes due and payable in fiscal year 2003=2004 for the amount
5 21 of the reduction in the credit. The bill makes an
5 22 appropriation to reimburse counties under this second option
5 23 for the carryover credit.
5 24 The bill takes effect upon enactment.
5 25 LSB 1189YH 80
5 26 mg/sh/8