SF 2081 (LSB 5738XS (3) 87)

SENATE FILE 2081

BY  CHELGREN

A BILL FOR

An Act modifying appropriation amounts for payment of commercial and industrial property tax replacement claims and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 2.48, subsection 3, paragraph f, subparagraph (6), Code 2018, is amended by striking the subparagraph.
    Sec. 2.  Section 441.21A, subsection 1, paragraph a, Code 2018, is amended to read as follows:
   a.  For Subject to the limitations of subparagraphs (1), (2), and (3) of this paragraph, for each fiscal year during the period beginning on or after July 1, 2014, and ending June 30, 2020, there is appropriated from the general fund of the state to the department of revenue an amount necessary for the payment of all commercial and industrial property tax replacement claims under this section for the fiscal year. However, for a
   (1)  For the fiscal year beginning on or after July 1, 2017, the total amount of moneys appropriated from the general fund of the state to the department of revenue for the payment of commercial and industrial property tax replacement claims in that fiscal year shall not exceed the total amount of money moneys necessary to pay all commercial and industrial property tax replacement claims for the fiscal year beginning July 1, 2016.
   (2)  For the fiscal year beginning July 1, 2018, the total amount of moneys appropriated from the general fund of the state to the department of revenue for the payment of commercial and industrial property tax replacement claims in that fiscal year shall not exceed two-thirds of the total amount of moneys necessary to pay all commercial and industrial property tax replacement claims for the fiscal year beginning July 1, 2016.
   (3)  For the fiscal year beginning July 1, 2019, the total amount of moneys appropriated from the general fund of the state to the department of revenue for the payment of commercial and industrial property tax replacement claims in that fiscal year shall not exceed one-third of the total amount of moneys necessary to pay all commercial and industrial property tax replacement claims for the fiscal year beginning July 1, 2016.
    Sec. 3.  Section 441.21A, subsections 2 and 3, Code 2018, are amended to read as follows:
   2.  Beginning with the fiscal year beginning July 1, 2014, and ending with the fiscal year beginning July 1, 2019, each county treasurer shall be paid by the department of revenue an amount equal to the amount of the commercial and industrial property tax replacement claims in the county, as calculated in subsection 4. If an amount appropriated for a fiscal year is insufficient to pay all replacement claims, the director of revenue shall prorate the payment of replacement claims to the county treasurers and shall notify the county auditors of the pro rata percentage on or before September 30.
   3.  On or before July 1 of each fiscal year beginning on or after July 1, 2014, but before July 1, 2020, the assessor shall report to the county auditor the total actual value of all commercial property and industrial property in the county that is subject to assessment and taxation for the assessment year used to calculate the taxes due and payable in that fiscal year.
    Sec. 4.  Section 441.21A, subsection 4, unnumbered paragraph 1, Code 2018, is amended to read as follows:
   On or before a date established by rule of the department of revenue of each fiscal year beginning on or after July 1, 2014, but before July 1, 2020, the county auditor shall prepare a statement, based upon the report received pursuant to subsection 3, listing for each taxing district in the county:
    Sec. 5.  EFFECTIVE DATE.  The following takes effect July 1, 2022:
   The section of this Act amending section 2.48.
    Sec. 6.  EFFECTIVE DATE.  The following, being deemed of immediate importance, takes effect upon enactment:
   The sections of this Act amending section 441.21A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Current Code section 441.21A establishes and appropriates amounts from the general fund of the state for commercial and industrial property tax replacement claims. Such claims are calculated by the department of revenue based on the difference between the actual value and assessed value of all commercial and industrial property in each taxing district in the state. Current law appropriates an amount necessary for the payment of all commercial and industrial property tax replacement claims for each fiscal year beginning on or after July 1, 2014, subject to a maximum total appropriation for fiscal years beginning on or after July 1, 2017, of the total amount necessary for the payment of replacement claims in the fiscal year beginning July 1, 2016. This bill eliminates the appropriation for fiscal years beginning on or after July 1, 2020. 
   The bill also establishes maximum total appropriation amounts for the fiscal years beginning July 1, 2018, and July 1, 2019. The appropriation for the fiscal year beginning July 1, 2018, shall not exceed two-thirds of the total amount of moneys necessary to pay all commercial and industrial property tax replacement claims for the fiscal year beginning July 1, 2016. The appropriation for the fiscal year beginning July 1, 2019, shall not exceed one-third of the total amount of moneys necessary to pay all commercial and industrial property tax replacement claims for the fiscal year beginning July 1, 2016.
   Under current law, the legislative tax expenditure committee established under Code section 2.48 is required to review the commercial and industrial property tax replacement claim expenditures. The bill eliminates that required periodic review effective July 1, 2022.
   Except for the Code section of the bill amending Code section 2.48, the bill takes effect upon enactment.