Text: HF02122 Text: HF02124 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 426C.1 COMMERCIAL PROPERTY TAX
1 2 CREDIT FUND – APPORTIONMENT – PAYMENT.
1 3 1. A commercial property tax credit fund is created.
1 4 There is appropriated annually from the general fund of the
1 5 state to the department of revenue and finance to be credited
1 6 to the commercial property tax credit fund, the sum of twenty
1 7 million dollars to implement this chapter.
1 8 The director of revenue and finance shall issue warrants on
1 9 the commercial property tax credit fund payable to the county
1 10 treasurer of each county of the state pursuant to this
1 11 chapter.
1 12 "Commercial property" as used in this chapter means
1 13 buildings and land assessed as commercial property which are
1 14 owned by a person operating a retail business occupying the
1 15 property and employing ten or fewer full-time equivalent
1 16 positions.
1 17 2. The commercial property tax credit fund shall be
1 18 apportioned each year so as to give a credit against the tax
1 19 on each eligible commercial property in the state in an amount
1 20 equal to the actual levy on the first fifteen thousand dollars
1 21 of actual value for each eligible commercial property.
1 22 3. The amount due each county shall be paid in two
1 23 payments on November 15 and March 15 of each fiscal year,
1 24 drawn upon warrants payable to the respective county
1 25 treasurers. The two payments shall be as nearly equal as
1 26 possible.
1 27 4. Annually, the department of revenue and finance shall
1 28 estimate the credit not to exceed the actual levy on the first
1 29 fifteen thousand dollars of actual value of each eligible
1 30 commercial property, and shall certify to the county auditor
1 31 of each county the credit and its amount in dollars. If the
1 32 amount appropriated in subsection 1 is insufficient to fully
1 33 fund the credit on the first fifteen thousand dollars of
1 34 actual value for each eligible commercial property, the
1 35 department shall estimate the portion of the fifteen thousand
2 1 dollar credit which will be fully funded by the appropriation
2 2 as required in section 25B.7 and shall so notify each county
2 3 auditor. Each county auditor shall then enter the credit
2 4 against the tax levied on each eligible commercial property in
2 5 each county payable during the ensuing year, designating on
2 6 the tax lists the credit as being from the commercial property
2 7 tax credit fund, and credit shall then be given to the several
2 8 taxing districts in which eligible commercial properties are
2 9 located in an amount equal to the credits allowed on the taxes
2 10 of the commercial properties. The amount of credits shall be
2 11 apportioned by each county treasurer to the several taxing
2 12 districts as provided by law, in the same manner as though the
2 13 amount of the credit had been paid by the owners of the
2 14 commercial properties. However, the several taxing districts
2 15 shall not draw the funds so credited until after the
2 16 semiannual allocations are received by the county treasurer,
2 17 as provided in this chapter. Each county treasurer shall show
2 18 on each tax receipt the amount of credit received from the
2 19 commercial property tax credit fund.
2 20 5. The commercial property tax credit allowed in this
2 21 chapter shall not exceed the actual amount of taxes payable on
2 22 the eligible commercial property, exclusive of any special
2 23 assessments levied against the commercial property.
2 24 Sec. 2. NEW SECTION. 426C.2 QUALIFYING FOR CREDIT.
2 25 A person who wishes to qualify for the credit allowed under
2 26 this chapter shall obtain the appropriate forms for filing for
2 27 the credit from the assessor. The person claiming the credit
2 28 shall file a verified statement and designation of commercial
2 29 property with the assessor for the year for which the person
2 30 is first claiming the credit. The claim shall be filed not
2 31 later than July 1 of the year for which the person is claiming
2 32 the credit. A claim filed after July 1 of the year for which
2 33 the person is claiming the credit shall be considered as a
2 34 claim filed for the following year.
2 35 Upon the filing and allowance of the claim, the claim shall
3 1 be allowed on that commercial property for successive years
3 2 without further filing as long as the property is legally or
3 3 equitably owned and used as commercial property by that person
3 4 or that person's spouse on July 1 of each of those successive
3 5 years and the number of full-time equivalent positions has not
3 6 exceeded ten. When the property is sold or transferred, the
3 7 buyer or transferee who wishes to qualify shall refile for the
3 8 credit.
3 9 Sec. 3. NEW SECTION. 426C.3 FORMS – RULES.
3 10 The director of revenue and finance shall prescribe the
3 11 form for making a verified statement and designation of
3 12 commercial property pursuant to section 426C.2, the form for
3 13 any required supporting affidavits, and other forms as may be
3 14 necessary for the proper administration of this chapter.
3 15 Whenever necessary, the department of revenue and finance
3 16 shall forward to the county auditor of each county in the
3 17 state the prescribed sample forms, and the county auditors
3 18 shall furnish blank forms, prepared in accordance with the
3 19 sample forms, with the assessment rolls, books, and supplies
3 20 delivered to the assessors. The department of revenue and
3 21 finance shall prescribe and the county auditors shall include
3 22 on the forms for claiming the credit a statement to the effect
3 23 that the owner realizes that the owner must give written
3 24 notice to the assessor when the owner changes the use of the
3 25 property.
3 26 The director of revenue and finance may prescribe rules,
3 27 not inconsistent with the provisions of this chapter,
3 28 necessary to carry out and effectuate the purposes of this
3 29 chapter.
3 30 Sec. 4. EFFECTIVE AND APPLICABILITY DATES. This Act,
3 31 being deemed of immediate importance, takes effect upon
3 32 enactment and applies to taxes due and payable in fiscal years
3 33 beginning on or after July 1, 1999.
3 34 EXPLANATION
3 35 The bill creates a property tax credit for property
4 1 assessed as commercial upon which the owner of the property
4 2 operates a retail business employing 10 or fewer full-time
4 3 equivalent positions. The amount of the credit equals the tax
4 4 levied on the first $15,000 of actual value of the commercial
4 5 property. Twenty million dollars is appropriated annually to
4 6 reimburse local governments for the loss of revenue resulting
4 7 from the credit. However, if the $20 million is insufficient
4 8 to fully fund the credit then the credit is reduced so that
4 9 the local governments do not lose revenue. To claim the
4 10 credit the owner must file a claim for the first year the
4 11 credit is claimed but does not have to file again as long as
4 12 the property still qualifies.
4 13 The bill takes effect upon enactment and applies to
4 14 property taxes due and payable in fiscal years beginning on or
4 15 after July 1, 1999.
4 16 LSB 3583HH 77
4 17 mg/cf/24.1
Text: HF02122 Text: HF02124 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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