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PAG LIN 1 1 HOUSE FILE 726 1 2 1 3 AN ACT 1 4 RELATING TO THE LIVESTOCK PRODUCTION TAX CREDIT; INCREASING 1 5 THE STATE'S REIMBURSEMENT FOR THE HOMESTEAD, MILITARY 1 6 SERVICE, AND ELDERLY AND DISABLED CREDITS; REQUIRING 1 7 THE STATE TO REIMBURSE NEW PROPERTY TAX CREDITS AND 1 8 EXEMPTIONS; PROVIDING FOR LOCAL GOVERNMENT BUDGET 1 9 PRACTICES AND PROPERTY TAX STATEMENTS; AND INCLUDING 1 10 APPLICABILITY DATE PROVISIONS. 1 11 1 12 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 13 1 14 DIVISION I 1 15 LIVESTOCK PRODUCTION TAX CREDIT 1 16 Section 1. Section 422.120, subsection 1, paragraph b, 1 17 Code 1997, is amended by striking the paragraph and inserting 1 18 in lieu thereof the following: 1 19 b. (1) The credit shall be available to an individual or 1 20 corporate taxpayer if the taxpayer's federal taxable income is 1 21 not more than ninety-nine thousand six hundred dollars for the 1 22 tax year. In the case of married taxpayers, their combined 1 23 federal taxable income shall be used to determine if they 1 24 qualify for the credit. 1 25 (2) For each subsequent tax year, the maximum taxable 1 26 income amount specified in subparagraph (1) shall be 1 27 multiplied by the cumulative index factor for that tax year. 1 28 "Cumulative index factor" means the product of the annual 1 29 index factor for the 1997 calendar year and all annual index 1 30 factors for subsequent calendar years. The cumulative index 1 31 factor applies to all tax years beginning on or after January 1 32 1 of the calendar year for which the latest annual index 1 33 factor has been determined. 1 34 (3) The annual index factor for the 1997 calendar year is 1 35 one hundred percent. For each subsequent calendar year, the 2 1 annual index factor equals the annual inflation factor for 2 2 that calendar year as computed in section 422.4 for purposes 2 3 of the individual income tax. 2 4 Sec. 2. Section 422.120, Code 1997, is amended by adding 2 5 the following new subsection: 2 6 NEW SUBSECTION. 2A. As used in this division, "cow-calf 2 7 operation" means any of the following: 2 8 a. Mature beef cows bred or for breeding. 2 9 b. Bred yearling heifers. 2 10 c. Breeding bulls. 2 11 Sec. 3. Section 422.121, Code 1997, is amended to read as 2 12 follows: 2 13 422.121 APPROPRIATION. 2 14 Beginning with the fiscal year beginning July 1, 1997, 2 15 there is appropriated annually from the general fund of the 2 16 state two million dollars to refund the credits allowed under 2 17 this division. Notwithstanding section 422.120, for tax years 2 18 beginning on or after January 1, 1997, the livestock 2 19 production tax credit shall only be allowed for cow-calf 2 20 operations. 2 21 DIVISION II 2 22 HOMESTEAD, MILITARY, LOW-INCOME, ELDERLY AND DISABLED 2 23 AND OTHER CREDITS AND REIMBURSEMENT CLAIMS 2 24 Sec. 4. NEW SECTION. 25B.7 FUNDING PROPERTY TAX CREDITS 2 25 AND EXEMPTIONS. 2 26 1. Beginning with property taxes due and payable in the 2 27 fiscal year beginning July 1, 1998, the cost of providing a 2 28 property tax credit or property tax exemption which is enacted 2 29 by the general assembly on or after January 1, 1997, shall be 2 30 fully funded by the state. If a state appropriation made to 2 31 fund a credit or exemption which is enacted on or after 2 32 January 1, 1997, is not sufficient to fully fund the credit or 2 33 exemption, the political subdivision shall be required to 2 34 extend to the taxpayer only that portion of the credit or 2 35 exemption estimated by the department of revenue and finance 3 1 to be funded by the state appropriation. The department of 3 2 revenue and finance shall determine by June 15 the estimated 3 3 portion of the credit or exemption which will be funded by the 3 4 state appropriation. 3 5 2. The requirement for fully funding and the consequences 3 6 of not fully funding credits and exemptions under subsection 1 3 7 also apply to all of the following: 3 8 a. Homestead tax credit pursuant to sections 425.1 through 3 9 425.15. 3 10 b. Low-income property tax credit and elderly and disabled 3 11 property tax credit pursuant to sections 425.16 through 3 12 425.40. 3 13 c. Military service property tax credit and exemption 3 14 pursuant to chapter 426A and sections 427.3 through 427.7, to 3 15 the extent of six dollars and seventy-five cents per thousand 3 16 dollars of assessed value of the exempt property. 3 17 3. a. For purposes of this subsection, "base 3 18 reimbursement amount" means the amount in dollars received for 3 19 the fiscal year beginning July 1, 1996, by a city, county, or 3 20 school district from the state as a reimbursement for the 3 21 homestead tax credit, military service property tax credit, 3 22 low-income property tax credit, or the elderly and disabled 3 23 property tax credit, as appropriate. The county treasurer 3 24 shall determine the base reimbursement amount for the cities, 3 25 county, and school districts for each credit. The treasurer 3 26 shall notify the department of management of the base 3 27 reimbursement amounts for each credit of each school district. 3 28 b. The amount of state reimbursement received for a fiscal 3 29 year beginning on or after July 1, 1997, and ending on or 3 30 before June 30, 2002, by a city, county, or school district 3 31 for the homestead tax credit, military service property tax 3 32 credit, low-income property tax credit, or elderly and 3 33 disabled property tax credit in excess of the base 3 34 reimbursement amount for that credit shall be used as follows: 3 35 (1) In the case of a city, at least fifty percent shall be 4 1 used for property tax relief with the remaining amount used 4 2 for infrastructure. The county treasurer shall provide to 4 3 each city located in the county the total amount of excess tax 4 4 credit reimbursement received by the city. 4 5 (2) In the case of a county, at least fifty percent shall 4 6 be used for property tax relief with the remaining amount used 4 7 for infrastructure or for paying the expenses incurred in 4 8 providing the statement and receipt required under section 4 9 445.5. The county treasurer shall provide the county auditor 4 10 with the total amount of excess tax credit reimbursement 4 11 received by the county. 4 12 (3) In the case of a school district, one hundred percent 4 13 shall be used for property tax relief through the reduction in 4 14 the additional levy under section 257.4. Each county 4 15 treasurer shall provide the department of management with the 4 16 total amount of excess tax credit reimbursement received by 4 17 each school district in the county. 4 18 c. The requirements of paragraph "b" do not constitute a 4 19 state mandate under this chapter. 4 20 d. This subsection is repealed June 30, 2002, for fiscal 4 21 years beginning after that date. 4 22 Sec. 5. Section 8.59, Code 1997, is amended to read as 4 23 follows: 4 24 8.59 APPROPRIATIONS FREEZE. 4 25 Notwithstanding contrary provisions of the Code, the 4 26 amounts appropriated under the applicable sections of the Code 4 27 for fiscal years commencing on or after July 1, 1993, are 4 28 limited to those amounts expended under those sections for the 4 29 fiscal year commencing July 1, 1992. If an applicable section 4 30 appropriates moneys to be distributed to different recipients 4 31 and the operation of this section reduces the total amount to 4 32 be distributed under the applicable section, the moneys shall 4 33 be prorated among the recipients. As used in this section, 4 34 "applicable sections" means the following sections: 53.50, 4 35 229.35, 230.8, 230.11, 405A.8, 411.20,425.1, 425.39, 426A.1,5 1 663.44, and 822.5. 5 2 Sec. 6. Section 425.2, unnumbered paragraphs 2 and 6, Code 5 3 1997, are amended to read as follows: 5 4 Upon the filing and allowance of the claim, the claim shall 5 5 be allowed on that homestead for successive years without 5 6 further filing as long as the property is legally or equitably 5 7 owned and used as a homestead by that person or that person's 5 8 spouse on July 1 of each of those successive years, and the 5 9 owner of the property being claimed as a homestead declares 5 10 residency in Iowa for purposes of income taxation, and the 5 11 property is occupied by that person or that person's spouse 5 12 for at least six months in each of those calendar years in 5 13 which the fiscal year begins. When the property is sold or 5 14 transferred, the buyer or transferee who wishes to qualify 5 15 shall refile for the credit. However, when the property is 5 16 transferred as part of a distribution made pursuant to chapter 5 17 598, the transferee who is the spouse retaining ownership of 5 18 the property is not required to refile for the credit. 5 19 Property divided pursuant to chapter 598 shall not be modified 5 20 following the division of the property. An owner who ceases 5 21 to use a property for a homestead or intends not to use it as 5 22 a homestead for at least six months in a calendar year shall 5 23 provide written notice to the assessor by July 1 following the 5 24 date on which the use is changed.If the written notice is5 25not provided to the assessor by the appropriate July 1, the5 26owner forfeits the right to file a belated claim on another5 27homestead for the year the notice should have been given.A 5 28 person who sells or transfers a homestead or the personal 5 29 representative of a deceased person who had a homestead at the 5 30 time of death, shall provide written notice to the assessor 5 31 that the property is no longer the homestead of the former 5 32 claimant. 5 33The failure of a person to file a claim under this section5 34on or before July 1 of the year for which the person is first5 35claiming the credit or to have the evidence of ownership6 1recorded in the office of the county recorder does not6 2disqualify the claim if the person claiming the credit or6 3through whom the credit is claimed is otherwise qualified.6 4The belated claim shall be filed with the appropriate assessor6 5on or before December 31 of the following calendar year and,6 6if approved by the board of supervisors, the county treasurer6 7shall submit the belated claim to the director of revenue and6 8finance who shall send payment to the claimant. The payment6 9shall be made from funds appropriated to the homestead credit6 10fund.6 11 Sec. 7. Section 425.39, subsection 1, Code 1997, is 6 12 amended to read as follows: 6 131.Theextraordinaryelderly and disabled property tax 6 14 credit and reimbursement fund is created. There is 6 15 appropriated annually from the general fund of the state to 6 16 the department of revenue and finance to be credited to the 6 17extraordinaryelderly and disabled property tax credit and 6 18 reimbursement fund, from funds not otherwise appropriated, an 6 19 amount sufficient to implement this division for claimants 6 20 described in section 425.17, subsection 2, paragraph "a". 6 21 Sec. 8. Section 425.39, subsection 2, Code 1997, is 6 22 amended by striking the subsection. 6 23 Sec. 9. Section 427.5, unnumbered paragraph 5, Code 1997, 6 24 is amended by striking the unnumbered paragraph. 6 25 Sec. 10. Sections 5, 7, and 8 of this division of this Act 6 26 apply to reimbursements made for property tax credits and to 6 27 reimbursements for rent constituting property taxes payable on 6 28 or after July 1, 1997. 6 29 DIVISION III 6 30 LOCAL GOVERNMENT BUDGETING PRACTICES 6 31 Sec. 11. Section 24.9, unnumbered paragraph 1, Code 1997, 6 32 is amended to read as follows: 6 33 Each municipality shall file with the secretary or clerk 6 34 thereof the estimates required to be made in sections 24.3 to 6 35 24.8, at least twenty days before the date fixed by law for 7 1 certifying the same to the levying board and shall forthwith 7 2 fix a date for a hearing thereon, and shall publish such 7 3 estimates and any annual levies previously authorized as 7 4 provided in section 76.2, with a notice of the time when and 7 5 the place where such hearing shall be heldat leastnot less 7 6 than ten nor more than twenty days before the hearing. 7 7 Provided that in municipalities of less than two hundred 7 8 population such estimates and the notice of hearing thereon 7 9 shall be posted in three public places in the district in lieu 7 10 of publication. 7 11 Sec. 12. Section 24.9, Code 1997, is amended by adding the 7 12 following new unnumbered paragraph: 7 13 NEW UNNUMBERED PARAGRAPH. The department of management 7 14 shall prescribe the form for public hearing notices for use by 7 15 municipalities. 7 16 Sec. 13. Section 24.17, Code 1997, is amended to read as 7 17 follows: 7 18 24.17 BUDGETS CERTIFIED. 7 19 The local budgets of the various political subdivisions 7 20 shall be certified by the chairperson of the certifying board 7 21 or levying board, as the case may be, in duplicate to the 7 22 county auditor not later than March 15 of each year onblanks7 23 forms, and pursuant to instructions, prescribed by thestate7 24board, and according to the rules and instruction which shall7 25be furnished all certifying and levying boards in printed form7 26by the state board or city finance committee in the case of7 27citiesdepartment of management.However, if a city or county7 28holds a special levy election, the certification shall be not7 29later than fourteen days following the special levy election,7 30and. However, if the political subdivision is a school 7 31 district, as defined in section 257.2, its budget shall be 7 32 certified not later than April 15 of each year. 7 33 One copy of the budget shall be retained on file in the 7 34 office by the county auditor and the other shall be certified 7 35 by the county auditor to the state board. The department of 8 1 management shall certify the taxes back to the county auditor 8 2 by June 15. 8 3 Sec. 14. Section 331.403, subsection 1, Code 1997, is 8 4 amended to read as follows: 8 5 1. Not later thanOctoberDecember 1 of each year on forms 8 6 and pursuant to instructions prescribed by the department of 8 7 management, a county shall prepare an annual financial report 8 8 showing for each county fund the financial condition as of 8 9 June 30 and the results of operations for the year then ended. 8 10 Copies of the report shall be maintained as a public record at 8 11 the auditor's office and shall befurnished tofiled with the 8 12 director of the department of management andtowith the 8 13 auditor of state by December 1. A summary of the report, in a 8 14 form prescribed by the director, shall be published by each 8 15 county not later thanOctoberDecember 1 of each year in one 8 16 or more newspapers which meet the requirements of section 8 17 618.14. 8 18 Sec. 15. Section 331.403, subsection 3, Code 1997, is 8 19 amended by striking the subsection and inserting in lieu 8 20 thereof the following: 8 21 3. A county that fails to meet the filing deadline imposed 8 22 by this section shall have withheld from payments to be made 8 23 to the county pursuant to chapter 405A an amount equal to five 8 24 cents per capita until the financial report is filed. 8 25 Sec. 16. Section 331.434, subsection 3, Code 1997, is 8 26 amended to read as follows: 8 27 3. The board shall set a time and place for a public 8 28 hearing on the budget before the final certification date and 8 29 shall publish notice of the hearing not less than ten nor more 8 30 than twenty days prior to the hearing in the county newspapers 8 31 selected under chapter 349. A summary of the proposed budget, 8 32 in the form prescribed by the director of the department of 8 33 management, shall be included in the notice. Proof of 8 34 publication shall be filed with and preserved by the auditor. 8 35 A levy is not valid unless and until the notice is published 9 1 and filed. The department of management shall prescribe the 9 2 form for the public hearing notice for use by counties. 9 3 Sec. 17. Section 331.434, Code 1997, is amended by adding 9 4 the following new subsection: 9 5 NEW SUBSECTION. 7. Taxes levied by a county whose budget 9 6 is certified after March 15 shall be limited to the prior 9 7 year's budget amount. However, this penalty may be waived by 9 8 the director of the department of management if the county 9 9 demonstrates that the March 15 deadline was missed because of 9 10 circumstances beyond the control of the county. 9 11 Sec. 18. Section 331.439, subsection 1, paragraph a, Code 9 12 1997, is amended to read as follows: 9 13 a. The county accurately reported byOctober 15December 1 9 14 the county's expenditures for mental health, mental 9 15 retardation, and developmental disabilities services for the 9 16 previous fiscal year on forms prescribed by the department of 9 17 human services. 9 18 Sec. 19. Section 384.16, subsection 3, Code 1997, is 9 19 amended to read as follows: 9 20 3. The council shall set a time and place for public 9 21 hearing on the budget before the final certification date and 9 22 shall publish notice of the hearing not less than ten nor more 9 23 than twenty days before the hearingas provided in section9 24362.3in a newspaper published at least once weekly and having 9 25 general circulation in the city. However, if the city has a 9 26 population of two hundred or less, publication may be made by 9 27 posting in three public places in the city. A summary of the 9 28 proposed budget shall be included in the notice. Proof of 9 29 publication must be filed with the county auditor. The 9 30 department of management shall prescribe the form for the 9 31 public hearing notice for use by cities. 9 32 Sec. 20. Section 384.16, Code 1997, is amended by adding 9 33 the following new subsection: 9 34 NEW SUBSECTION. 6. Taxes levied by a city whose budget is 9 35 certified after March 15 shall be limited to the prior year's 10 1 budget amount. However, this penalty may be waived by the 10 2 director of the department of management if the city 10 3 demonstrates that the March 15 deadline was missed because of 10 4 circumstances beyond the control of the city. 10 5 Sec. 21. Section 384.22, Code 1997, is amended to read as 10 6 follows: 10 7 384.22 ANNUAL REPORT. 10 8 Not later thanOctoberDecember 1 of each year, a city 10 9 shall publish an annual report as provided in section 362.3 10 10 containing a summary for the preceding fiscal year of all 10 11 collections and receipts, all accounts due the city, and all 10 12 expenditures, the current public debt of the city, and the 10 13 legal debt limit of the city for the current fiscal year. The 10 14 report shall be prepared on forms and pursuant to instructions 10 15 prescribed by the auditor of state. A copy of this report 10 16 must befurnished tofiled with the auditor of state not later 10 17 than December 1 of each year. 10 18 A city that fails to meet the filing deadline imposed by 10 19 this section shall have withheld from payments to be made to 10 20 the city pursuant to chapter 405A an amount equal to five 10 21 cents per capita until the annual report is filed with the 10 22 auditor of state. 10 23 Sec. 22. Section 445.5, Code 1997, is amended to read as 10 24 follows: 10 25 445.5 STATEMENT AND RECEIPT. 10 26 1. As soon as practicable after receiving the tax list 10 27 prescribed in chapter 443, the treasurer shall deliver to the 10 28 taxpayer a statement of taxes due and payable which shall 10 29 include the following information: 10 30 a. The year of tax. 10 31 b. A description of the parcel. 10 32 c. The assessed value of the parcel, itemized by the value 10 33 for land, dwellings, and buildings, for the current year and 10 34 the previous year as valued by the assessor after application 10 35 of any equalization orders. 11 1 d. The taxable value of the parcel, itemized by the value 11 2 for land, dwellings, and buildings, for the current year and 11 3 the previous year after application of any equalization 11 4 orders, assessment limitations, and itemized valuation 11 5 exemptions. 11 6 e. The complete name of all taxing authorities receiving a 11 7 tax distribution, the amount of the distribution, and the 11 8 percentage distribution for each named authority, listed from 11 9 the highest to the lowest distribution percentage. 11 10 f. The consolidated levy rate for one thousand dollars of 11 11 taxable valuation multiplied by the taxable valuation to 11 12 produce the gross taxes levied before application of credits 11 13 against levied taxes for the previous and current fiscal 11 14 years. 11 15 g. The itemized credits against levied taxes deducted from 11 16 the gross taxes levied in order to produce the net taxes owed 11 17 for the previous and current fiscal years. 11 18 h. The amount of property tax dollars reduced on each 11 19 parcel as a result of the moneys received from the property 11 20 tax relief fund pursuant to section 426B.2, subsections 1 and 11 21 3. 11 22 i. The total amount of taxes levied by each taxing 11 23 authority in the previous fiscal year and the current fiscal 11 24 year, the dollar amount difference between the two amounts, 11 25 and that same difference expressed as a percentage increase or 11 26 decrease. 11 27 If the person receiving the statement is not the 11 28 titleholder of record or contract holder of record of the 11 29 parcel, that person shall pay a fee at the rate of two dollars 11 30 per parcel for each year. The treasurer shall at the same 11 31 time deliver to the titleholder of record or contract holder 11 32 of record a copy of the statement. 11 33 2. The county treasurer shall deliver to the taxpayer a 11 34 receipt stating the year of tax, date of payment, a 11 35 description of the parcel, and the amount of taxes, interest, 12 1 fees, and costs paid except when payment of taxes is made by 12 2 check, then a receipt shall be issued only upon request. The 12 3 receipt shall be in full of the first half, second half, or 12 4 full year amounts unless a payment is made under section 12 5 445.36A or 435.24, subsection 6. 12 6 Sec. 23. TAX STATEMENT STUDY COMMITTEE. 12 7 1. There is established a tax statement study committee 12 8 comprised of the members of the county finance committee and 12 9 three county treasurers appointed by the governor in 12 10 consultation with the Iowa state treasurers association. 12 11 2. The committee shall study the following: 12 12 a. The fiscal impact of implementing redesigned property 12 13 tax statements as required in section 445.5. 12 14 b. Identification of the impediments involved in requiring 12 15 the tax statement in section 445.5. 12 16 c. The technological impact of implementing the property 12 17 tax statement required in section 445.5. 12 18 d. The recommended design of the property tax statement 12 19 required in section 445.5. 12 20 e. A process by which counties and the state can achieve 12 21 the goal of providing a uniform tax statement design to be 12 22 used statewide. 12 23 3. The committee shall furnish a report of its study to 12 24 the general assembly in January 1998. 12 25 Sec. 24. APPLICABILITY DATES. Section 22 of this division 12 26 of this Act, amending section 445.5, applies to tax statements 12 27 issued for the fiscal year beginning July 1, 2001. The 12 28 remainder of this division of this Act applies to budgets 12 29 prepared for fiscal years beginning on or after July 1, 1998. 12 30 12 31 12 32 12 33 RON J. CORBETT 12 34 Speaker of the House 12 35 13 1 13 2 13 3 MARY E. KRAMER 13 4 President of the Senate 13 5 13 6 I hereby certify that this bill originated in the House and 13 7 is known as House File 726, Seventy-seventh General Assembly. 13 8 13 9 13 10 13 11 ELIZABETH ISAACSON 13 12 Chief Clerk of the House 13 13 Approved , 1997 13 14 13 15 13 16 13 17 TERRY E. BRANSTAD 13 18 Governor
Text: HF00725 Text: HF00727 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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