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