Text: HF00464 Text: HF00466 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 425.1, subsections 2 and 4, Code 1999, 1 2 are amended to read as follows: 1 3 2. The homestead credit fund shall be apportioned each 1 4 year so as to give a credit against the tax on each eligible 1 5 homestead in the state in an amount equal to the actual levy 1 6 on the first four thousand eight hundred fifty dollars, as 1 7 adjusted as provided in subsection 7, of actual value for each 1 8 homestead. 1 9 4. Annually the department of revenue and finance shall 1 10 estimate the credit not to exceed the actual levy on the first 1 11 four thousand eight hundred fifty dollars, as adjusted as 1 12 provided in subsection 7, of actual value of each eligible 1 13 homestead, and shall certify to the county auditor of each 1 14 county the credit and its amount in dollars. Each county 1 15 auditor shall then enter the credit against the tax levied on 1 16 each eligible homestead in each county payable during the 1 17 ensuing year, designating on the tax lists the credit as being 1 18 from the homestead credit fund, and credit shall then be given 1 19 to the several taxing districts in which eligible homesteads 1 20 are located in an amount equal to the credits allowed on the 1 21 taxes of the homesteads. The amount of credits shall be 1 22 apportioned by each county treasurer to the several taxing 1 23 districts as provided by law, in the same manner as though the 1 24 amount of the credit had been paid by the owners of the 1 25 homesteads. However, the several taxing districts shall not 1 26 draw the funds so credited until after the semiannual 1 27 allocations have been received by the county treasurer, as 1 28 provided in this chapter. Each county treasurer shall show on 1 29 each tax receipt the amount of credit received from the 1 30 homestead credit fund. 1 31 Sec. 2. Section 425.1, Code 1999, is amended by adding the 1 32 following new subsection: 1 33 NEW SUBSECTION. 7. The four thousand eight hundred fifty 1 34 dollar amount specified in subsections 2 and 4 shall be 1 35 adjusted by a cumulative homestead credit factor determined 2 1 under this subsection. 2 2 a. "Annual homestead credit factor" means for an 2 3 assessment year the sum of the statewide percentage increase, 2 4 but not less than zero, in the percentage of actual value that 2 5 residential property for that assessment year is taxable over 2 6 the percentage of actual value that residential property for 2 7 the previous assessment year is taxable, plus one hundred 2 8 percent as determined by the director of revenue and finance 2 9 by November 15 of the assessment year. 2 10 b. "Cumulative homestead credit factor" means the product 2 11 of the annual homestead credit factor for the 1998 assessment 2 12 year and all annual homestead credit factors for subsequent 2 13 assessment years. The cumulative homestead credit factor 2 14 applies to the fiscal year following the assessment year for 2 15 which the latest annual homestead credit factor was 2 16 determined. 2 17 c. The annual homestead credit factor for the 1998 2 18 assessment year is one hundred percent. 2 19 Sec. 3. Section 441.21, subsection 4, Code 1999, is 2 20 amended to read as follows: 2 21 4. For valuations established as of January 1, 1979, the 2 22 percentage of actual value at which agricultural and 2 23 residential property shall be assessed shall be the quotient 2 24 of the dividend and divisor as defined in this section. The 2 25 dividend for each class of property shall be the dividend as 2 26 determined for each class of property for valuations 2 27 established as of January 1, 1978, adjusted by the product 2 28 obtained by multiplying the percentage determined for that 2 29 year by the amount of any additions or deletions to actual 2 30 value, excluding those resulting from the revaluation of 2 31 existing properties, as reported by the assessors on the 2 32 abstracts of assessment for 1978, plus six percent of the 2 33 amount so determined.However, if the difference between the2 34dividend so determined for either class of property and the2 35dividend for that class of property for valuations established3 1as of January 1, 1978, adjusted by the product obtained by3 2multiplying the percentage determined for that year by the3 3amount of any additions or deletions to actual value,3 4excluding those resulting from the revaluation of existing3 5properties, as reported by the assessors on the abstracts of3 6assessment for 1978, is less than six percent, the 19793 7dividend for the other class of property shall be the dividend3 8as determined for that class of property for valuations3 9established as of January 1, 1978, adjusted by the product3 10obtained by multiplying the percentage determined for that3 11year by the amount of any additions or deletions to actual3 12value, excluding those resulting from the revaluation of3 13existing properties, as reported by the assessors on the3 14abstracts of assessment for 1978, plus a percentage of the3 15amount so determined which is equal to the percentage by which3 16the dividend as determined for the other class of property for3 17valuations established as of January 1, 1978, adjusted by the3 18product obtained by multiplying the percentage determined for3 19that year by the amount of any additions or deletions to3 20actual value, excluding those resulting from the revaluation3 21of existing properties, as reported by the assessors on the3 22abstracts of assessment for 1978, is increased in arriving at3 23the 1979 dividend for the other class of property.The 3 24 divisor for each class of property shall be the total actual 3 25 value of all such property in the state in the preceding year, 3 26 as reported by the assessors on the abstracts of assessment 3 27 submitted for 1978, plus the amount of value added to said 3 28 total actual value by the revaluation of existing properties 3 29 in 1979 as equalized by the director of revenue pursuant to 3 30 section 441.49. The director shall utilize information 3 31 reported on abstracts of assessment submitted pursuant to 3 32 section 441.45 in determining such percentage. For valuations 3 33 established as of January 1, 1980, and each year thereafter, 3 34 the percentage of actual value as equalized by the director of 3 35 revenue and finance as provided in section 441.49 at which 4 1 agricultural and residential property shall be assessed shall 4 2 be calculated in accordance with the methods providedherein4 3including the limitation of increases in agricultural and4 4residential assessed values to the percentage increase of the4 5other class of property if the other class increases less than4 6the allowable limit adjusted to include the applicable and4 7current values as equalized by the director of revenue and4 8finance, except that anyin this subsection. However, 4 9 references to six percent in this subsection shall be four 4 10 percent. 4 11 For valuations established as of January 1, 1999, and each 4 12 year thereafter, references to six percent in this subsection 4 13 shall be three percent. 4 14 Sec. 4. APPLICABILITY. 4 15 1. Sections 1 and 2 of this Act apply to the computation 4 16 of homestead credits allowed for taxes payable in fiscal years 4 17 beginning on or after July 1, 2000. 4 18 2. Section 3 of this Act applies retroactively to January 4 19 1, 1999, for valuations for property tax established on or 4 20 after that date. 4 21 EXPLANATION 4 22 Under present law, statewide valuations for residential and 4 23 agricultural property are limited to an increase from year to 4 24 year of 4 percent. This bill reduces this to 3 percent. In 4 25 addition, under present law, the valuations have been tied 4 26 together so that one will not increase at a faster rate than 4 27 the other. This has resulted in residential property being 4 28 subject to tax at less than 60 percent of its actual value for 4 29 the last four assessment years. 4 30 The bill removes the tie between residential and 4 31 agricultural valuations and increases the amount of actual 4 32 value upon which the homestead credit for residential property 4 33 is based by the amount of the increase in statewide 4 34 residential values. 4 35 The bill applies retroactively to valuations established on 5 1 or after January 1, 1999, and applies to fiscal years 5 2 beginning on or after July 1, 2000, for determining the 5 3 adjusted homestead credit amounts. 5 4 LSB 2394YH 78 5 5 mg/cf/24
Text: HF00464 Text: HF00466 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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