House Study Bill 678 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON GRASSLEY) A BILL FOR An Act modifying appropriation amounts for payment of 1 commercial and industrial property tax replacement claims 2 and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6218YC (3) 87 md/jh

H.F. _____ Section 1. Section 441.21A, subsection 1, paragraph a, Code 1 2018, is amended to read as follows: 2 a. For Subject to the limitations of subparagraphs (1), 3 (2), (3), (4), and (5) of this paragraph, for each fiscal year 4 beginning on or after July 1, 2014, there is appropriated from 5 the general fund of the state to the department of revenue 6 an amount necessary for the payment of all commercial and 7 industrial property tax replacement claims under this section 8 for the fiscal year. However, for a 9 (1) For the fiscal year beginning on or after July 1, 2017, 10 the total amount of moneys appropriated from the general fund 11 of the state to the department of revenue for the payment of 12 commercial and industrial property tax replacement claims in 13 that fiscal year shall not exceed the total amount of money 14 moneys necessary to pay all commercial and industrial property 15 tax replacement claims for the fiscal year beginning July 1, 16 2016. 17 (2) For the fiscal year beginning July 1, 2018, the 18 total amount of moneys appropriated from the general fund of 19 the state to the department of revenue for the payment of 20 commercial and industrial property tax replacement claims in 21 that fiscal year shall not exceed one hundred million dollars. 22 (3) For the fiscal year beginning July 1, 2019, the 23 total amount of moneys appropriated from the general fund of 24 the state to the department of revenue for the payment of 25 commercial and industrial property tax replacement claims in 26 that fiscal year shall not exceed seventy-five million dollars. 27 (4) For the fiscal year beginning July 1, 2020, the 28 total amount of moneys appropriated from the general fund of 29 the state to the department of revenue for the payment of 30 commercial and industrial property tax replacement claims in 31 that fiscal year shall not exceed fifty million dollars. 32 (5) For the fiscal year beginning July 1, 2021, and each 33 succeeding fiscal year, the total amount of moneys appropriated 34 from the general fund of the state to the department of 35 -1- LSB 6218YC (3) 87 md/jh 1/ 2

H.F. _____ revenue for the payment of commercial and industrial property 1 tax replacement claims in that fiscal year shall not exceed 2 twenty-five million dollars. 3 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 4 importance, takes effect upon enactment. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 Current Code section 441.21A establishes and appropriates 9 amounts from the general fund of the state for commercial and 10 industrial property tax replacement claims. Such claims are 11 calculated by the department of revenue based on the difference 12 between the actual value and assessed value of all commercial 13 and industrial property in each taxing district in the state. 14 Current law appropriates an amount necessary for the payment 15 of all commercial and industrial property tax replacement 16 claims for each fiscal year beginning on or after July 1, 17 2014, subject to a maximum total appropriation for fiscal 18 years beginning on or after July 1, 2017, of the total amount 19 necessary for the payment of replacement claims in the fiscal 20 year beginning July 1, 2016. 21 This bill establishes maximum total appropriation amounts 22 for the fiscal years beginning on or after July 1, 2018. The 23 appropriation for the fiscal year beginning July 1, 2018, shall 24 not exceed $100 million. The appropriation for the fiscal year 25 beginning July 1, 2019, shall not exceed $75 million. The 26 appropriation for the fiscal year beginning July 1, 2020, shall 27 not exceed $50 million. The appropriation for the fiscal year 28 beginning July 1, 2021, and each succeeding fiscal year, shall 29 not exceed $25 million. 30 The bill takes effect upon enactment. 31 -2- LSB 6218YC (3) 87 md/jh 2/ 2