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House File 712

Partial Bill History

Bill Text

PAG LIN
  1  1                                           HOUSE FILE 712
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO THE HOMESTEAD TAX CREDIT AND TO THE ANNUAL FILING
  1  5    FOR THE FAMILY FARM TAX CREDIT, TO THE NOTIFICATION TO THE
  1  6    ASSESSOR OF THE CHANGE IN OWNERSHIP OR THE PERSON ACTIVELY
  1  7    ENGAGED IN FARMING THE TRACT OF AGRICULTURAL LAND FOR WHICH
  1  8    THE FAMILY FARM TAX CREDIT IS ALLOWED, PROVIDING A PENALTY,
  1  9    AND INCLUDING EFFECTIVE AND APPLICABILITY DATE PROVISIONS.  
  1 10 
  1 11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 12 
  1 13    Section 1.  Section 425.7, subsection 3, unnumbered
  1 14 paragraph 2, Code 2001, is amended to read as follows:
  1 15    If a claim is disallowed by the director of revenue and
  1 16 finance and not appealed to the state board of tax review or
  1 17 appealed to and upheld by the state board of tax review and a
  1 18 petition for judicial review is not filed with respect to the
  1 19 disallowance, any amounts of credits allowed and paid from the
  1 20 homestead credit fund including the penalty, if any, become a
  1 21 lien upon the property on which credit was originally granted,
  1 22 if still in the hands of the claimant, and not in the hands of
  1 23 a bona fide purchaser, and any amount so erroneously paid
  1 24 including the penalty, if any, shall be collected by the
  1 25 county treasurer in the same manner as other taxes and the
  1 26 collections shall be returned to the department of revenue and
  1 27 finance and credited to the homestead credit fund.  The
  1 28 director of revenue and finance may institute legal
  1 29 proceedings against a homestead credit claimant for the
  1 30 collection of payments made on disallowed credits and the
  1 31 penalty, if any.  If a person makes a false claim or affidavit
  1 32 with fraudulent intent to obtain the homestead credit, the
  1 33 person is guilty of a fraudulent practice and the claim shall
  1 34 be disallowed in full.  If the credit has been paid, the
  1 35 amount of the credit plus a penalty equal to twenty-five
  2  1 percent of the amount of credit plus interest, at the rate in
  2  2 effect under section 421.7, from the time of payment shall be
  2  3 collected by the county treasurer in the same manner as other
  2  4 property taxes, penalty, and interest are collected and when
  2  5 collected shall be paid to the director of revenue and
  2  6 finance.  If a homestead credit is disallowed and the claimant
  2  7 failed to give written notice to the assessor as required by
  2  8 section 425.2 when the property ceased to be used as a
  2  9 homestead by the claimant, a civil penalty equal to fifty five
  2 10 percent of the amount of the disallowed credit is assessed
  2 11 against the claimant.
  2 12    Sec. 2.  Section 425A.4, subsection 1, Code 2001, is
  2 13 amended to read as follows:
  2 14    1.  To apply for the credit, the person shall each year
  2 15 between July 1 and October 15 deliver to the county assessor a
  2 16 verified statement and designation of the tracts of
  2 17 agricultural land for which the credit is claimed.  The
  2 18 assessor shall return the statement and designation on or
  2 19 before November 15 of each year to the county board of
  2 20 supervisors with a recommendation for allowance or
  2 21 disallowance.  A claim for credit filed after November 1 of
  2 22 the year shall be considered as a claim filed for the
  2 23 following year.
  2 24    Sec. 3.  Section 425A.4, Code 2001, is amended by adding
  2 25 the following new subsections:
  2 26    NEW SUBSECTION.  3.  Upon the filing and allowance of the
  2 27 claim, the claim shall be allowed on that tract for successive
  2 28 years without further filing as long as the property is
  2 29 legally or equitably owned by that person or that person's
  2 30 spouse on July 1 of each of those successive years, and the
  2 31 designated person who is actively engaged in farming remains
  2 32 the same during these years.  When the property is sold or
  2 33 transferred, the buyer or transferee who wishes to qualify
  2 34 shall file for the credit.  However, when the property is
  2 35 transferred as part of a distribution made pursuant to chapter
  3  1 598, the transferee who is the spouse retaining ownership of
  3  2 the property is not required to file for the credit.  In the
  3  3 case where the owner remains the same but the person who is
  3  4 actively engaged in farming changes, the owner shall refile
  3  5 for the credit.  The owner shall provide written notice if the
  3  6 person actively engaged in farming changes.
  3  7    NEW SUBSECTION.  4.  The assessor shall retain a permanent
  3  8 file of current family farm credit claims filed in the
  3  9 assessor's office.
  3 10    The county recorder shall give notice to the assessor of
  3 11 each transfer of title filed in the recorder's office.  The
  3 12 notice shall describe the tract of agricultural land
  3 13 transferred, the name of the person transferring the title to
  3 14 the tract, and the name of the person to whom title to the
  3 15 tract has been transferred.
  3 16    Sec. 4.  Section 425A.8, Code 2001, is amended by adding
  3 17 the following new unnumbered paragraph:
  3 18    NEW UNNUMBERED PARAGRAPH.  A person who fails to notify the
  3 19 assessor of a change in the person who is actively engaged in
  3 20 farming the tract for which the credit under section 425A.3,
  3 21 is allowed shall be liable for the amount of the credit plus a
  3 22 penalty equal to five percent of the amount of the credit.
  3 23 The amounts shall be collected by the county treasurer in the
  3 24 same manner as other property taxes and any penalty are
  3 25 collected and when collected shall be paid to the director of
  3 26 revenue and finance.
  3 27    Sec. 5.  Section 425.14, Code 2001, is repealed.
  3 28    Sec. 6.  This Act takes effect July 1, 2001, and applies to
  3 29 claims for homestead tax credits filed or on file and for
  3 30 family farm tax credits filed on or after that date.  
  3 31 
  3 32 
  3 33                                                             
  3 34                               BRENT SIEGRIST
  3 35                               Speaker of the House
  4  1 
  4  2 
  4  3                                                             
  4  4                               MARY E. KRAMER
  4  5                               President of the Senate
  4  6 
  4  7    I hereby certify that this bill originated in the House and
  4  8 is known as House File 712, Seventy-ninth General Assembly.
  4  9 
  4 10 
  4 11                                                             
  4 12                               MARGARET THOMSON
  4 13                               Chief Clerk of the House
  4 14 Approved                , 2001
  4 15 
  4 16 
  4 17                            
  4 18 THOMAS J. VILSACK
  4 19 Governor
     

Text: HF00711                           Text: HF00713
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