House File 2536 - Introduced



                                       HOUSE FILE       
                                       BY  PAULSEN, KAUFMANN, and
                                           STAED


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to an adjustment in state foundation aid for
  2    certain school districts required to repay property taxes and
  3    providing an effective date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 6289YH 82
  6 sc/nh/5

PAG LIN



  1  1    Section 1.  Section 257.12, subsection 1, Code 2007, is
  1  2 amended to read as follows:
  1  3    1.  If a school district is required to repay property
  1  4 taxes paid for school taxes levied on commercial or industrial
  1  5 property originally assessed at five million dollars or more
  1  6 because the assessment was subsequently reduced by the final
  1  7 action of the local board of review, property assessment
  1  8 appeal board, or judicial action and the amount of the
  1  9 reduction in the assessment equals at least one hundred
  1 10 thousand dollars or two percent of the assessed value of all
  1 11 taxable property in the district prior to the reduction,
  1 12 whichever is less, the school district is eligible for an
  1 13 adjustment in state foundation aid.  To receive the adjustment
  1 14 in state foundation aid, the school district shall apply to
  1 15 the department of management prior to the beginning of the
  1 16 budget year following the budget year in which the repayment
  1 17 of the property taxes occurred.  The department of management
  1 18 shall determine the amount of adjustment in state foundation
  1 19 aid pursuant to subsection 2.
  1 20    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of
  1 21 immediate importance, takes effect upon enactment.
  1 22                           EXPLANATION
  1 23    Current law provides that a school district is eligible for
  1 24 an adjustment in state foundation aid if the school district
  1 25 is required to repay property taxes on an assessment in excess
  1 26 of $5 million if the assessment was subsequently reduced on
  1 27 appeal to the property assessment appeal board or the district
  1 28 court, and the amount of the reduction equals at least
  1 29 $100,000 or 2 percent of the property valuation in the school
  1 30 district.
  1 31    This bill provides that a school district shall be eligible
  1 32 for an adjustment in state foundation aid for repayment of
  1 33 taxes on a reduction in valuation of any assessment on
  1 34 commercial or industrial property, regardless of its original
  1 35 assessment and regardless of the amount of the reduction.
  2  1    The bill takes effect upon enactment.
  2  2 LSB 6289YH 82
  2  3 sc/nh/5