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House File 2123

Partial Bill History

Bill Text

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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