Text: HF00045 Text: HF00047 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 25B.7 FUNDING PROPERTY TAX 1 2 CREDITS AND EXEMPTIONS. 1 3 1. Beginning with property taxes due and payable in the 1 4 fiscal year beginning July 1, 1998, the cost of providing a 1 5 property tax credit or property tax exemption which is enacted 1 6 by the general assembly on or after January 1, 1997, shall be 1 7 fully funded by the state. If a state appropriation made to 1 8 fund a credit or exemption which is enacted on or after 1 9 January 1, 1997, is not sufficient to fully fund the credit or 1 10 exemption, the political subdivision shall be required to 1 11 extend to the taxpayer only that portion of the credit or 1 12 exemption funded by the state appropriation. The department 1 13 of revenue and finance shall determine the portion of the 1 14 credit or exemption which will be funded by the state 1 15 appropriation. Each county treasurer shall submit by 1 16 September 1 to the department of revenue and finance the total 1 17 value of the exemptions and credits and the department of 1 18 revenue and finance shall notify each county treasurer of the 1 19 portion of those exemptions and credits that is to be allowed 1 20 by September 30. 1 21 2. The requirement for fully funding and the consequences 1 22 of not fully funding credits and exemptions under subsection 1 1 23 also apply to all of the following: 1 24 a. Homestead tax credit pursuant to sections 425.1 through 1 25 425.15. 1 26 b. Elderly, low-income, and disabled property tax credits 1 27 pursuant to sections 425.16 through 425.40. 1 28 c. Military service property tax credits and exemptions 1 29 pursuant to chapter 426A and sections 427.3 through 427.7, to 1 30 the extent of six dollars and seventy-five cents per thousand 1 31 dollars of assessed value of the exempt property. 1 32 Sec. 2. Section 8.59, Code 1997, is amended to read as 1 33 follows: 1 34 8.59 APPROPRIATIONS FREEZE. 1 35 Notwithstanding contrary provisions of the Code, the 2 1 amounts appropriated under the applicable sections of the Code 2 2 for fiscal years commencing on or after July 1, 1993, are 2 3 limited to those amounts expended under those sections for the 2 4 fiscal year commencing July 1, 1992. If an applicable section 2 5 appropriates moneys to be distributed to different recipients 2 6 and the operation of this section reduces the total amount to 2 7 be distributed under the applicable section, the moneys shall 2 8 be prorated among the recipients. As used in this section, 2 9 "applicable sections" means the following sections: 53.50, 2 10 229.35, 230.8, 230.11, 405A.8, 411.20,425.1, 425.39, 426A.1,2 11 663.44, and 822.5. 2 12 Sec. 3. Section 425.23, subsection 1, paragraph a, Code 2 13 1997, is amended to read as follows: 2 14 a. The tentative credit or reimbursement for a claimant 2 15 described in section 425.17, subsection 2, paragraph "a",and2 16paragraph "b" if no appropriation is made to the fund created2 17in section 425.40shall be determined in accordance with the 2 18 following schedule: 2 19 Percent of property taxes 2 20 due or rent constituting 2 21 property taxes paid 2 22 If the household allowed as a credit or 2 23 income is: reimbursement: 2 24 $ 0 – 5,999.99............... 100% 2 25 6,000 – 6,999.99................ 85 2 26 7,000 – 7,999.99................ 70 2 27 8,000 – 9,999.99................ 50 2 28 10,000 – 11,999.99................ 35 2 29 12,000 – 13,999.99................ 25 2 30 Sec. 4. Section 425.23, subsection 1, paragraph b, Code 1997, 2 31 is amended by striking the paragraph and inserting in lieu 2 32 thereof the following: 2 33 b. The tentative credit or 2 34 reimbursement for a claimant described in section 425.17, 2 35 subsection 2, paragraph "b", shall 3 1 be determined in accordance with the 3 2 following schedule: 3 3 Percent of property taxes 3 4 due or rent constituting 3 5 property taxes paid 3 6 If the household allowed as a credit or 3 7 income is: reimbursement: 3 8 $ 0 – 5,999.99................100% 3 9 6,000 – 6,999.99................ 85 3 10 7,000 – 7,999.99................ 70 3 11 8,000 – 9,999.99................ 50 3 12 10,000 – 11,999.99................ 35 3 13 12,000 – 13,999.99................ 25 3 14 Sec. 5. Section 425.23, subsection 3, paragraph a, Code 3 15 1997, is amended to read as follows: 3 16 a. A person who is eligible to file a claim for credit for 3 17 property taxes due and who has a household income of six 3 18 thousand dollars or less and who has an unpaid special 3 19 assessment levied against the homestead may file a claim for a 3 20 special assessment credit with the county treasurer. The 3 21 department shall provide to the respective treasurers the 3 22 forms necessary for the administration of this subsection. 3 23 The claim shall be filed not later than September 30 of each 3 24 year. Upon the filing of the claim, interest for late payment 3 25 shall not accrue against the amount of the unpaid special 3 26 assessment due and payable. The claim filed by the claimant 3 27 constitutes a claim for credit of an amount equal to the 3 28 actual amount due upon the unpaid special assessment, plus 3 29 interest, payable during the fiscal year for which the claim 3 30 is filed against the homestead of the claimant.However,3 31where the claimant is an individual described in section3 32425.17, subsection 2, paragraph "b", and the tentative credit3 33is determined according to the schedule in section 425.23,3 34subsection 1, paragraph "b", subparagraph (2), the claim filed3 35constitutes a claim for credit of an amount equal to one-half4 1of the actual amount due and payable during the fiscal year.4 2 The treasurer shall certify to the director of revenue and 4 3 finance not later than October 15 of each year the total 4 4 amount of dollars due for claims allowed. The amount of 4 5 reimbursement due each county shall be paid by the director of 4 6 revenue and finance by November 15 of each year, drawn upon 4 7 warrants payable to the respective treasurer. There is 4 8 appropriated annually from the general fund of the state to 4 9 the department of revenue and finance an amount sufficient to 4 10 carry out the provisions of this subsection. The treasurer 4 11 shall credit any moneys received from the department against 4 12 the amount of the unpaid special assessment due and payable on 4 13 the homestead of the claimant. 4 14 Sec. 6. Section 425.39, subsection 1, Code 1997, is 4 15 amended to read as follows: 4 161.The extraordinary property tax credit and reimbursement 4 17 fund is created. There is appropriated annually from the 4 18 general fund of the state to the department of revenue and 4 19 finance to be credited to the extraordinary property tax 4 20 credit and reimbursement fund, from funds not otherwise 4 21 appropriated, an amount sufficient to implement this division 4 22 for claimants described in section 425.17, subsection 2, 4 23 paragraph "a". 4 24 Sec. 7. Section 425.39, subsection 2, Code 1997, is 4 25 amended by striking the subsection. 4 26 Sec. 8. Section 425.40, subsection 1, Code 1997, is 4 27 amended to read as follows: 4 281.A low-income tax credit and reimbursement fund is 4 29 created. There is appropriated annually from the general fund 4 30 of the state to the department of revenue and finance to be 4 31 credited to the low-income tax credit and reimbursement fund, 4 32 from funds not otherwise appropriated, an amount sufficient to 4 33 implement this division for claimants described in section 4 34 425.17, subsection 2, paragraph "b". 4 35 Sec. 9. Section 425.40, subsection 2, Code 1997, is 5 1 amended by striking the subsection. 5 2 Sec. 10. Sections 2 through 9 of this Act apply to 5 3 reimbursements made for property tax credits and to 5 4 reimbursements for rent constituting property taxes payable on 5 5 or after July 1, 1997. 5 6 EXPLANATION 5 7 The bill provides that beginning with property taxes 5 8 payable in the fiscal year beginning July 1, 1998, the cost of 5 9 providing property tax credits or reimbursements which are 5 10 enacted on or after January 1, 1997, shall be fully funded by 5 11 the state. If the state does not fully fund this cost, then 5 12 the taxpayer will receive only a portion of the credit or 5 13 exemption to the extent the exemption or credit is funded. 5 14 This also applies to the homestead credit; elderly, low- 5 15 income, and disabled tax credits; and military service tax 5 16 credit but only to the extent of $6.75 per $1,000 of assessed 5 17 value. 5 18 State reimbursements to local governments for the homestead 5 19 credit; the low-income elderly and disabled additional 5 20 homestead credit and rent reimbursement; and the military 5 21 service exemption and credit were frozen beginning with the 5 22 1992-1993 fiscal year at the 1991-1992 fiscal year levels. 5 23 The bill eliminates the freeze and provides for standing 5 24 unlimited appropriations for these credits and reimbursements. 5 25 These reimbursements apply to reimbursements made on or after 5 26 July 1, 1997. 5 27 LSB 1349HH 77 5 28 mg/sc/14
Text: HF00045 Text: HF00047 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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