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Senate File 12

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 425.11, subsection 4, Code 2001, is
  1  2 amended to read as follows:
  1  3    4.  a.  The word "owner" shall mean the means any of the
  1  4 following:
  1  5    (1)  A person who holds the fee simple title to the
  1  6 homestead, and in addition shall mean the a person occupying
  1  7 the homestead as a surviving spouse, or the a person occupying
  1  8 the homestead under a contract of purchase which contract has
  1  9 been recorded in the office of the county recorder of the
  1 10 county in which the property is located, or the.
  1 11    (2)  A person occupying the homestead under devise or by
  1 12 operation of the inheritance laws where the whole interest
  1 13 passes or where the divided interest is shared only by persons
  1 14 related or formerly related to each other by blood, marriage,
  1 15 or adoption, or the.
  1 16    (3)  A person occupying the homestead is a who holds an
  1 17 interest in a family farm entity that owns the property.  The
  1 18 person must be one of the following:
  1 19    (a)  A shareholder of a the family farm corporation that
  1 20 owns the property, or the.
  1 21    (b)  A member of the family farm limited liability company
  1 22 that owns the property.
  1 23    (c)  A general or limited partner of the family farm
  1 24 limited partnership that owns the property.
  1 25    (d)  A beneficiary of the family trust that holds the
  1 26 property.
  1 27    (4)  A person occupying the homestead under a deed which
  1 28 conveys a divided interest where the divided interest is
  1 29 shared only by persons related or formerly related to each
  1 30 other by blood, marriage, or adoption or where the.
  1 31    (5)  A person occupying the homestead holds a life estate
  1 32 with the reversion interest held by a nonprofit corporation
  1 33 organized under chapter 504A, provided that if the holder of
  1 34 the life estate is liable for and pays property tax on the
  1 35 homestead or where the.
  2  1    (6)  A person occupying the homestead holds an interest in
  2  2 a horizontal property regime under chapter 499B, regardless of
  2  3 whether the underlying land committed to the horizontal
  2  4 property regime is in fee or as a leasehold interest, provided
  2  5 that if the holder of the interest in the horizontal property
  2  6 regime is liable for and pays property tax on the homestead.
  2  7    b.  For the purpose of this chapter, the word "owner" shall
  2  8 be construed to mean a bona fide owner and not one for the
  2  9 purpose only of availing the person of the benefits of this
  2 10 chapter.  In order to qualify for the homestead tax credit,
  2 11 evidence of ownership shall be on file in the office of the
  2 12 clerk of the district court or recorded in the office of the
  2 13 county recorder at the time the owner files with the assessor
  2 14 a verified statement of the homestead claimed by the owner as
  2 15 provided in section 425.2.
  2 16    c.  As used in this subsection, "family farm entity" means
  2 17 the same as defined in section 10.1.  "Family farm
  2 18 corporation", "family farm limited liability company", "family
  2 19 farm limited partnership", and "family trust" mean the same as
  2 20 defined in section 9H.1.
  2 21    Sec. 2.  Section 425A.2, subsection 4, paragraphs c and e,
  2 22 Code 2001, are amended to read as follows:
  2 23    c.  If the owner is a family farm corporation entity, a
  2 24 family member who is a any of the following:
  2 25    (1)  A shareholder of the family farm corporation or the
  2 26 shareholder's spouse.
  2 27    (2)  A member of the family farm limited liability company
  2 28 or the member's spouse.
  2 29    (3)  A general or limited partner of the family farm
  2 30 limited partnership or the partner's spouse.
  2 31    (d)  A beneficiary of the family trust or the beneficiary's
  2 32 spouse.
  2 33    e.  If the owner is an individual who leases the tract to a
  2 34 family farm corporation entity, a any of the following:
  2 35    (1)  A shareholder of the family farm corporation if the
  3  1 combined stock of the family farm corporation owned by the
  3  2 owner of the tract and persons related to the owner as
  3  3 enumerated in paragraph "a" is equal to at least fifty-one
  3  4 percent of the stock of the family farm corporation.
  3  5    (2)  A member of the family farm limited liability company
  3  6 if the combined membership interest of the family farm limited
  3  7 liability company owned by the owner of the tract and persons
  3  8 related to the owner as enumerated in paragraph "a" is equal
  3  9 to at least fifty-one percent of the membership interest of
  3 10 the family farm limited liability company.
  3 11    (3)  A general or limited partner of the family farm
  3 12 limited partnership if the combined partnership interest of
  3 13 the family farm limited partnership owned by the owner of the
  3 14 tract and persons related to the owner as enumerated in
  3 15 paragraph "a" is equal to at least fifty-one percent of the
  3 16 partnership interest of the family farm limited partnership.
  3 17    (4)  A beneficiary of the family trust if the combined
  3 18 beneficial interest of the family trust held by the owner of
  3 19 the tract and persons related to the owner as enumerated in
  3 20 paragraph "a" is equal to at least fifty-one percent of the
  3 21 beneficial interest of the family trust.
  3 22    Sec. 3.  Section 425A.2, subsection 6, paragraph f, Code
  3 23 2001, is amended to read as follows:
  3 24    f.  A family farm corporation or authorized farm
  3 25 corporation, entity as both are defined in section 9H.1 10.1,
  3 26 which owns the agricultural land.
  3 27    g.  An authorized farm corporation as defined in section
  3 28 9H.1, which owns the agricultural land.  
  3 29                           EXPLANATION
  3 30    This bill amends Code chapters 425 providing for homestead
  3 31 tax credits and 425A providing for family farm tax credits.
  3 32 The chapters both currently provide that in order to be
  3 33 eligible to file for the credit, the owner may be a family
  3 34 farm corporation as defined in Code section 9H.1 if the
  3 35 individual filing for the credit is a shareholder of the
  4  1 family farm corporation or in some instances has a family
  4  2 relationship with the individual filing for the credit.
  4  3    A family farm corporation is a corporation that is allowed
  4  4 to own agricultural land under Code chapter 9H.  Under that
  4  5 chapter, an entity organized on a family basis can also be a
  4  6 family farm limited liability company, family farm limited
  4  7 partnership, or family trust.  These types of businesses are
  4  8 referred to as "family farm entities".  A family farm
  4  9 corporation must be founded for the purposes of farming and
  4 10 the ownership of agricultural land; a majority of the voting
  4 11 stock must be held by, and a majority of the voting
  4 12 stockholders must be, relatives; all stockholders must be
  4 13 individuals; and 60 percent of the corporation's gross
  4 14 revenues over the last consecutive three-year period must come
  4 15 from farming.  Similar requirements apply to other family farm
  4 16 entities.
  4 17    The bill provides that to the extent that an individual who
  4 18 is a shareholder of a family farm corporation owning
  4 19 agricultural land can qualify to file for a homestead tax
  4 20 credit under Code chapter 425 or a family farm tax credit
  4 21 under Code chapter 425A, a member of a family farm limited
  4 22 liability company, general or limited partner of a family farm
  4 23 limited partnership, or beneficiary of a family trust can also
  4 24 qualify to file for the same tax credit.  
  4 25 LSB 1306SS 79
  4 26 da/cf/24
     

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