1997 SUMMARY OF LEGISLATION

TAXATION

TAXATION LEGISLATION

SENATE FILE 30 - Sales and Use Tax Exemptions — Products Used in Agricultural Production (full text of act)

BY IVERSON. This Act exempts from the sales and use tax ingredients and detergents used to enhance the application of commercial fertilizer, agricultural limestone, herbicides, pesticides, and insecticides used in agricultural production for market.
The Act takes effect April 22, 1997, and applies retroactively to April 1, 1990, for sales made and uses occurring on or after that date. The Act also requires that claims for refunds of taxes paid between April 1, 1990, to June 30, 1997, be made prior to October 1, 1997, and limits the aggregate amount of claims to $25,000.

SENATE FILE 35 - Inheritance Tax (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act eliminates the inheritance tax on property of decedents dying on or after July 1, 1997, and passing to parents, grandparents, great-grandparents and other lineal ascendants, and children, including adopted children and biological children entitled to inherit under the laws of this state, grandchildren, great-grandchildren and other lineal descendants, and stepchildren.

SENATE FILE 83 - Property Tax on Certain Donated Property (full text of act)

BY FREEMAN. This Act provides that when real estate is donated as a gift to the state or a political subdivision of the state, and the donor provides for the donor or someone else to retain the use of the property for the remainder of their lives, the real estate continues to be subject to property tax and special assessments if the property was so subject prior to the making of the gift. Once the use of the property transfers to the government donee, the property is then taxed or not taxed based upon the law and the classification of the property at the time of transfer.
The Act applies to property donated on or after July 1, 1992, for purposes of property taxes or special assessments due and payable in fiscal years beginning on or after July 1, 1997.

SENATE FILE 129 - Internal Revenue Code References and Income Tax Provisions (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act updates the references to the Internal Revenue Code to make the federal income tax revisions enacted by Congress in 1996 applicable for Iowa income tax purposes and to provide a state income tax deduction for that portion of the federal mortgage interest credit that reduced the amount of mortgage interest deductible for state and federal tax purposes. The Act reflects the change in nomenclature of the federal jobs tax credit to work opportunity tax credit. The Act updates Iowa Code references to the state research activities credit for individuals, corporations, and corporations in quality jobs enterprise zones to include the 1996 changes to the federal research activities credits. The research activities credit offered under the New Jobs and Income Act is also updated.
The Act takes effect May 9, 1997, and applies retroactively to tax years beginning on or after January 1, 1996.

SENATE FILE 222 - Use Tax on Motor Vehicle Leasing (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act amends Code Section 423.4, subsection 16, which was enacted in 1996 to provide an exemption from use tax for vehicles purchased for lease qualifying under Code Section 423.7A. The 1996 language indicates that once a lessor has met the qualifications for exemption under the statute, the exemption is maintained regardless of how the vehicle is subsequently used by the lessor. In addition, the 1996 law also provides that if a vehicle subject to lease does not meet the qualifications under the 1996 law, then use tax is due on the vehicle. The 1996 law does not provide a period of time to allow the vehicle to be released. The Act amends Code Section 423.4, subsection 16, to assist in the administration of the tax by providing that the use tax exemption may be retained as long as the lessor does not use the vehicle for any purpose other than for lease.
Code Section 423.7A is amended by the Act to allow the Department of Revenue and Finance to receive tax in instances where tax is due on the lease, but the transaction creating the tax does not require registration or titling of the vehicle subject to the lease. The section is also amended by the Act to provide that certain items shall not be included in the computation of the lease price. These items include title and registration fees, federal excise taxes, insurance, manufacturer's rebates, and refundable deposits. The Act also sets forth that when the parties to a lease agree to include the tax in the lease payments to be paid by the lessee, the total of the use tax shall not be included in the computation of total lease price. Instead, the cost of the tax shall only be reflected as part of the monthly lease payments. Providing an exclusion of the tax in the computation of total lease price in this situation will assist in the computation of the tax and auditing of lessor records.
The Act also provides that if a lease is terminated prior to the termination date, no use tax paid is refundable unless the lease is terminated under the Defective Motor Vehicle (Lemon Law) statute.

SENATE FILE 531 - School District Financing — Physical Plant and Equipment Levy (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act provides for an increase in the amount able to be levied pursuant to a voter-approved physical plant and equipment levy, approved on or after July 1, 1997, from 67 cents to $1.34 per $1,000 of assessed valuation in a school district. A school district that already has a voter-approved levy at the former maximum rate of 67 cents per $1,000 of assessed value must continue at that rate for the duration of the period authorized for levy, unless the voters in the school district approve an additional levy of 67 cents per $1,000 of assessed value during the authorized period.
The Act provides that revenue from the regular physical plant and equipment levy, the maximum rate of which is 33 cents per $1,000 of assessed value in the district, and revenue from the voter-approved physical plant and equipment levy are not to be expended by the school district for district employee salaries or travel expenses, supplies, printing costs or media services, or for any other purpose not expressly authorized in Code Section 298.3.

SENATE FILE 553 - Tax Treatment of Subchapter S Financial Institutions and Their Shareholders (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act amends Code Section 422.61 to disallow the federal tax treatment for Iowa individual income tax purposes where a financial institution, as defined in Section 581 of the Internal Revenue Code, is not subject to income tax and where the financial institution's income is taxed on the shareholder's federal individual income tax return. This federal provision is known as a subchapter S corporation election. The federal subchapter S election for financial institutions allows the income of the financial institution to be taxed to the shareholders of the institution on their federal individual income tax return, rather than being taxed to the financial institution. Under the Act, the income of financial institutions is taxed under the state franchise tax only. To prevent the income from being taxed twice, a franchise tax credit, not to exceed a shareholder's pro rata share of the franchise tax paid, would be applied to the shareholder's individual income tax liability. The amount of the credit may not exceed the taxpayer's pro rata share of the franchise tax paid by the financial institution. This change is intended to prevent any discrimination in the taxation of federal obligation income of all financial institutions.
The Act applies retroactively to January 1, 1997, for tax years beginning on or after that date.

HOUSE FILE 126 - Sales and Use Tax Exemptions — Computers, Machinery, Equipment, and Fuel (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act rewrites the Code provision that exempts certain computers, machinery, equipment, electricity, and other items related to the manufacturing process from the state sales and use tax by defining those manufacturing activities which give rise to the exemption.

HOUSE FILE 212 - Real Property Used in Racetrack Operation (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act provides that real property used in the operation of a racetrack or racetrack enclosure may be subject to taxation even if otherwise exempt because it is owned by a city, county, state, or charitable or nonprofit entity. To be so taxed, the taxing authority must adopt a resolution subjecting the property to taxation. Once a resolution is adopted, the property will continue to be taxed until the resolution is repealed. This Act would subject Prairie Meadows and Dubuque racetracks to property taxation. Presently, because they are owned by counties, the Prairie Meadows and Dubuque racetracks are not subject to property taxation.
The Act also amends the definition of "racetrack enclosure" to include licensed racetrack areas where the required admission fee is paid by a person other than the person entering the area. This change in definition is to handle the situation that exists where the owner or operator of the racetrack enclosure pays the admission fee for the persons entering the racetrack enclosures.
House File 266 amends this Act by specifying that if the resolution to tax racetrack property by a local jurisdiction is passed by September 1, 1997, the property pays taxes during fiscal year 1998-1999. If the resolution was passed after that date, the jurisdiction must notify the assessor and owner prior to the next assessment (calendar) year and the process would be in the manner and time as for other valuations.

HOUSE FILE 218 - Notice of Appraisement for Inheritance Tax Purposes (full text of act)

BY CARROLL. This Act provides that the notice of appraisement of property required by the inheritance tax chapter of the Code shall be sent to certain interested parties by certified mail and notice is deemed complete when the notice is postmarked for delivery. Prior law required that delivery of a notice of appraisal be by personal service or by publication.

HOUSE FILE 266 - Tax Administration and Related Matters (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act relates to the administration of state individual income, corporate, franchise, sales and use, motor vehicle, property, and other taxes. This Act includes Code Editor changes that are generally nonsubstantive or involve obsolete provisions.
The Act provides that the minimum amount a person owes before a setoff of any tax refund can be made shall be determined by the Department of Revenue and Finance by rule, thus granting the department greater flexibility by providing a means of amending the minimum amount through the rulemaking process rather than the legislative process.
The Act provides that if a provision of the Iowa law grants a tax benefit, whether in the form of a tax exemption, deduction, credit, or otherwise, to some taxpayers but withholds the tax benefit from other taxpayers with the result that such withholding is unconstitutional, the tax benefit shall be extended to the other taxpayers in a manner that removes the unconstitutionality.
The Act amends the new Code provision enacted in 1996 that allows a resident shareholder of a "value-added" S corporation to elect to reduce state income tax by apportioning income, by providing that if the taxpayer then elects not to apportion income in a later tax year, the taxpayer could not reelect to apportion income for four tax years without the approval of the Director of Revenue and Finance. This same provision, as enacted in H.F. 306, does not apply until January 1, 1998. However, this Act, in which the amendment is made retroactively applicable to tax years beginning on or after January 1, 1997, takes precedence.
This Act authorizes the Department of Revenue and Finance to enter into contractual arrangement with vendors to create or administer systems or programs to identify nonfilers of returns or nonpayers of taxes administered by the department. These vendors will have access to confidential data. This authorization takes effect May 19, 1997.
The Act provides that any partnership taxed as a corporation for federal purposes will be treated as a corporation for Iowa tax purposes, rather than only publicly traded partnerships, as is currently provided in law. The provision is retroactively applicable to tax years beginning on or after January 1, 1997.
The Act adds "in this state" after the term "nonprofit private museum" in order to acquire uniformity in the application of the sales tax exemption and refund provision. It makes the exemption consistent with other exemptions available only to entities located in this state.
The Act expands the definition of "agricultural production" to include the production from aquaculture for purposes of the sales tax exemptions provided for items used in agricultural production.
The Act imposes the 5 percent sales and use tax on sales of prepaid telephone calling cards and authorization numbers.
The Act alters the sales tax exemption for sales made to persons engaged in the business of leasing by changing the required term of the leases from more than one year to more than five months. This provision takes effect May 19, 1997.
The Act allows the purchaser, user or consumer who has incurred a sales or use tax liability to pay the tax directly to the Department of Revenue and Finance. This would not apply to utilities or motor vehicle transactions. This provision takes effect January 1, 1998.
The Act provides the Department of Public Safety with restricted access to tax records. The information would be restricted to special highly complex drug or money-laundering investigations and would be released by court order after the request for the information has been approved by the Iowa Attorney General.
The Act allows the homestead credit to be granted on property owned by a family farm corporation if the person making the claim is a shareholder and occupies the property.
The Act provides for a taxpayer hearing on an omitted assessment made by the Director of Revenue and Finance after the making of the assessment rather than prior to the making of the assessment. Code Sections 440.2 through 440.4, which contain obsolete provisions pertaining to holding hearings prior to the assessment, are repealed.
The Act permits an assessor changing assessment jurisdictions to carry forward continuing education credit hours to the new position and requires that a deputy assessor complete continuing education requirements in order to continue to serve in the capacity of a deputy.
The Act allows a tax refund for motor fuel or undyed special fuel sold directly to and used for watercraft. This provision is retroactive to July 1, 1996.
This Act changes the date for interest to begin accruing on motor fuel tax refunds from the first day of the third calendar month following payment or filing to the first day of the second calendar month following the date the claim for refund is received by the Department of Revenue and Finance. Refunds for taxes paid for nonhighway use or in blending to produce ethanol shall accrue interest beginning with the first day of the second calendar month following the date the refund claim is received by the department.
The Act amends H.F. 212, which authorizes the taxation of real property used in the operation of a racetrack or racetrack enclosure, by specifying that if the resolution to tax such property by a local jurisdiction is passed by September 1, 1997, the property would be paying taxes during fiscal year 1998-1999. If the resolution was passed after that date, the jurisdiction must notify the assessor and owner prior to the next assessment (calendar) year and the process, including valuation, appeal and rollback, would be in the same manner and time as for other valuations.

HOUSE FILE 306 - Taxation of Shareholders of Subchapter S Corporations (full text of act)

BY COMMITTEE ON WAYS AND MEANS. Present law allows shareholders of an S corporation that is a value-added corporation to reduce their individual income tax by use of a different method of computing the tax. The difference between the regular method and the alternative method constitutes a claim for refund of tax owed. However, the aggregate amount of refunds shall not exceed $5 million per tax year.
This Act expands the opportunity for a reduction in tax to shareholders of all S corporations whether or not they are value-added corporations. This expansion is effective January 1, 1998, for tax years beginning on or after that date.
The Act also eliminates the limitation of $5 million on the aggregate amount of claims for refunds and the need to file claims for refunds. This provision applies retroactively to January 1, 1997, for tax years beginning on or after that date.
The Act also provides that if a taxpayer elects to take advantage of the provision to reduce the taxpayer's tax, then later elects not to take advantage of the tax reduction provisions, the taxpayer cannot reelect to take advantage of the tax reduction provisions for the next three tax years unless permitted by the Director of Revenue and Finance. This provision taes effect January 1, 1998, and applies to tax years beginning on or after that date (see also H.F. 266).

HOUSE FILE 336 - Levee and Drainage Districts — State-Owned Land (full text of act)

BY TEIG. This Act amends Code Chapter 468, which provides for the organization and administration of drainage and levee districts. Specifically, the Act amends Code Section 468.43, which provides for assessing state-owned land under the jurisdiction of the Department of Natural Resources. The Act eliminates a provision which provides that land under the department's jurisdiction is not subject to an assessment if located below the ordinary high water mark in a sovereign state-owned lake, marsh or stream.

HOUSE FILE 354 - Corporate Income Tax — Foreign Corporations (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act provides that a foreign corporation which trains employees or educates employees, or uses facilities in Iowa for that purpose, is not considered to be doing business within the state or deriving income from sources within the state for the purposes of the imposition of the state corporate income tax.
This Act takes affect April 18, 1997, and applies retroactively to January 1, 1997, for tax years beginning on or after that date.

HOUSE FILE 355 - Income Tax Exemption for Certain Military Pay (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act provides a state income tax exemption for the active duty pay of national guard and armed forces military reserve personnel for service performed on or after November 21, 1995, pursuant to military orders related to peacekeeping in Bosnia-Herzegovina.
The Act takes effect May 7, 1997.

HOUSE FILE 388 - Individual Income Tax Rates (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act reduces the state individual income tax rates by 10 percent. The lowest and highest rates under present law are 0.4 percent and 9.98 percent, respectively. Under the Act these rates would be 0.36 percent and 8.98 percent.
The Act takes effect January 1, 1998, and applies to tax years beginning on or after that date.

HOUSE FILE 495 - Valuation of Certain Industrial Machinery, Equipment, and Computers (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act provides that industrial machinery, equipment and computers acquired or initially leased before January 1, 1982, shall be assessed for taxation at 30 percent of net acquisition cost and shall be subject to the same exemption phase-out schedule as is currently provided by law for such property acquired or initially leased on or after January 1, 1982. According to the phase-out schedule, applicable machinery, equipment and computers will be totally exempt from taxation beginning with the 2002 assessment year.
The state will provide reimbursement for this property as it is removed from the tax rolls beginning with the 1996 assessment year. The Act applies to claims for machinery and equipment tax reimbursement filed on or after July 1, 1997.

HOUSE FILE 645 - Financial and Regulatory Procedures of Counties, Cities, and Drainage Districts (full text of act)

BY COMMITTEE ON LOCAL GOVERNMENT. This Act makes a number of changes to the powers and duties of county treasurers.
Code Section 321.44A is amended to permit the county treasurer to retain for deposit in the general fund of the county, 5 percent of the voluntary contribution made to the state's Anatomical Gift Public Awareness and Transplantation Fund.
Code Section 321.52 is amended to provide that junking certificates for vehicles shall be printed on the vehicle registration receipt rather than as a separate document. Code Section 321.105 is amended to direct the Director of Transportation to consult with the Iowa County Treasurers Association when annually setting the mailing fee for motor vehicle or trailer registrations.
Code Section 331.553 is amended to add two provisions relating to the form and method of payment made to county treasurers by allowing county treasurers to accept electronic transfers of moneys and require a payor or agent of a payor to pay by electronic transfer if the aggregate payment is $100,000 or more.
Code Section 384.59 is amended to require that the parcel number be identified on a special assessment payment schedule prepared by a city. Code Sections 384.60 and 384.63 are updated to refer to the county system of records rather than to the tax list or to a separate special assessment deficiencies book. Code Section 384.70 is amended to provide that funds paid for transfer of tax sale certificate to the holder of a special assessment bond payable from assessments on the property for which the certificate was issued shall be paid to the county treasurer, rather than to the county auditor. Code Section 427.9 is amended to require the county board of supervisors and the Department of Human Services to verify annually a person's eligibility for property tax suspension.
Code Section 435.1 is amended to remove from the definition of "modular home" the requirement that it be built on a permanent chassis. The section is also amended to require that a manufactured home placed outside a mobile home park be titled.
Code Section 445.37 is amended to provide that a property tax payment must be received by the county treasurer or postmarked on the day before the delinquent date to avoid late interest charges.
Code Section 446.9 is amended to provide that notice of the annual tax sale shall be published in at least one of the official newspapers in the county. Code Section 446.16 is amended to allow the county treasurer to collect a registration fee from tax sale certificate buyers at the tax sale to cover the cost of the sale.
Code Section 446.31 is amended to increase the certificate of purchase assignment fee from $10 to $100. The fee remains $10 for estates, however.
Code Section 447.10 is amended to provide that the fee charged a tax sale certificate holder for publication of notice of expiration of right of redemption shall not exceed fees established by the Code to be charged to counties for official publications.
Code Section 448.1 is amended to provide that if a tax sale certificate holder does not take action for issuance of a deed within 90 days of the expiration of the redemption period, the tax sale certificate is canceled.
Code Section 448.3 is amended to clarify the rights of the deedholder after a deed on property sold at sale is issued.
Code Section 468.57, relating to drainage district installment payments, is amended to be consistent with provisions on payment of special assessments.
Code Sections 468.160, 468.162, 468.163, and 468.165, all relating to drainage districts, are amended to provide that land upon which there is an unpaid drainage assessment shall be sold at tax sale and transfer related duties from the county auditor to the county treasurer.
Code Section 555B.4 is amended to require that notices of abandoned mobile homes and personal property include the docket and case number of the abandonment petition filed with the court. Code Section 562B.7 is amended to change the definition of "mobile home park" to include three or more mobile homes, manufactured homes or modular homes placed on developed property and operated for a profit.
Code Section 444.28, which applied to the property tax limitation on cities and counties for fiscal year 1994-1995, is repealed.
Those sections of the Act amending Code Sections 446.9, 446.16, 446.31, 448.1, 448.3, 468.57, and 555B.4 take effect May 6, 1997. Code provisions are also updated to refer to the county system of records rather than to fee books.

HOUSE FILE 726 - Tax Credits and Exemptions — Local Budget Practices — Property Tax Statements (full text of act)

BY COMMITTEE ON WAYS AND MEANS.
Division I - Livestock Production Credit
Division I amends Code Section 422.120, which provides for a state tax credit for livestock production operations located in the state. A $2 million standing appropriation is used to support the tax credit. The amount of the credit equals 10 cents for each corn equivalent consumed by the livestock in the production operation. The credit is available to an individual or corporate taxpayer who owns livestock if the total net worth of the taxpayer during the taxpayer's tax year is less than $1 million and the taxpayer receives, or accrues in the case of an accrual-basis taxpayer, more than one-half of the taxpayer's gross income from farming or ranching operations during the tax year. This Division replaces these net worth and gross income requirements with a requirement that the individual or corporation have federal taxable income of not more than $99,600 for the tax year. The amount is adjusted for inflation. The Division provides that for tax years beginning on or after January 1, 1997, the tax credit shall only be allowed for cow-calf operations. The Division defines cow-calf operations as meaning mature beef cows bred or for breeding, bred yearling heifers and breeding bulls.
Division II - State Property Tax Reimbursement
Division II provides that beginning with property taxes payable in the fiscal year beginning July 1, 1998, the cost of providing property tax credits or reimbursements that are enacted on or after January 1, 1997, shall be fully funded by the state. If the state does not provide funding for 100 percent of the cost of the total exemption or credit, the taxpayer will receive only a portion of the intended credit or exemption to the extent the resulting exemption or credit is fully funded. The portion the taxpayer will receive is based upon an estimate made by the Department of Revenue and Finance. This also applies to the homestead credit, low-income additional homestead credit, elderly and disabled additional homestead credit, and military service tax credit but only to the extent of $6.75 per $1,000 of assessed value.
State reimbursements to local governments for the homestead credit, the elderly and disabled additional homestead credit and rent reimbursement, and the military service credit were frozen, beginning with FY 1992-1993, at the FY 1991-1992 level. The Division eliminates the freeze and provides for standing unlimited appropriations for these credits and reimbursements. These reimbursements apply to reimbursements made on or after July 1, 1997.
Beginning with the fiscal year beginning July 1, 1997, the amount of reimbursements in excess of the dollar amount of reimbursements for FY 1996-1997 that a school district will receive because of the full funding of the homestead credit, military service credit, and elderly and disabled credit shall be used entirely for property tax relief. In the case of a city or county, at least 50 percent of such excess reimbursements shall be used for property tax relief with any remaining amount to be used for infrastructure. The counties may use the remaining amount to pay expenses incurred in providing tax statements and receipts required under a Code section amended in Division III. This requirement, describing how the excess reimbursement amounts may be used, does not apply after FY 2001-2002.
Division II also repeals the extension of time for filing late claims for the homestead and military property tax credits. Currently, the Code provides that late claims for the homestead and military property tax credits can be filed after the July 1 deadline through December 31 of the following year.
Division III - Local Government Budgeting Practices
This Division makes numerous changes relating to property taxes and local budget practices.
The Division provides that cities and counties whose budget is certified after March 15 shall be limited to the prior year's certification amount.
The Division requires that the Department of Management prescribe the forms for budgets certified to the county auditor and for the public hearing notice on the budget for use by cities and counties. The Division also requires the department to certify local budgets back to the county auditor by June 15 of each year.
The publication deadline for the city and county annual financial reports are changed from October 1 to December 1. The Division also provides that the Department of Management shall prescribe the form for the annual financial report. The Division prescribes a monetary withholding penalty for late filing of the report.
The Division also requires that a property tax statement be delivered to the taxpayer. The Division specifies additional comparative information that must be included on the property tax statement.
A section of the Division requiring that a tax statement be prepared and mailed applies to tax statements issued for fiscal years beginning on or after July 1, 2001. The sections of the Division that do not deal with preparation and issuance of tax statements apply to budgets prepared for fiscal years beginning on or after July 1, 1998.
THE GOVERNOR ITEM VETOED THE FOLLOWING:

• A section of Division III establishing a Tax Statement Study Committee. Also, the applicability provision requiring that the new tax statements be issued beginning with FY 2001-2002 is vetoed.

HOUSE FILE 729 - Local Option Sales and Services Taxes (full text of act)

BY COMMITTEE ON WAYS AND MEANS. This Act amends Code Section 422B.9 to provide that local option sales and services taxes shall be remitted to the Department of Revenue and Finance at the same frequency as is required for state retail sales and services taxes, which will provide uniformity in the reporting and depositing of state sales and services taxes and local sales and services taxes. Local tax collection shall not be included in the computation of state retail sales and services tax to determine frequency of remitting. Instead, the computation of state sales and services tax should be used to determine the frequency with which local taxes should be remitted to the department.
The Act also amends Code Section 422B.10 to increase the amount of estimated local option sales and services tax receipts remitted by the department to the counties and cities from 90 to 95 percent and also provides that such remission shall be on a monthly, rather than quarterly, basis.

RELATED LEGISLATION

SENATE FILE 189 -- School Finance — Regular Program District Cost Guarantee

(Complete summary under EDUCATION)

This Act continues through the 1998 and 1999 fiscal years a provision directing the Department of Management to provide a budget adjustment to ensure that a school district's regular program district cost is not less than 100 percent of the level of the previous budget year, thereby permitting the district to levy more property tax to maintain funding at 100 percent of the level of the previous budget year.
The Act takes effect April 9, 1997.

SENATE FILE 528 -- Land Recycling and Environmental Remediation Standards

(Complete summary under ENVIRONMENTAL PROTECTION)

This Act relates to the cleanup and reuse of contaminated property, environmental remediation standards and review procedures, participation in the remediation of contaminated property, liability for the voluntary cleanup of contaminated property, liability protections, and the establishment of a Land Recycling Program and a Land Recycling Fund. The Act allows cities and counties to provide, by ordinance, that the costs of carrying out response actions are to be reimbursed, in whole or part, by incremental property taxes over a six-year period.

SENATE FILE 542 -- Supplemental and Other Appropriations and Miscellaneous Provisions

(Complete summary under APPROPRIATIONS)

This Act makes supplemental appropriations for FY 1996-1997 and appropriations for other fiscal years. The Act includes provisions reestablishing the State Income Tax Checkoff for domestic abuse programs.

SENATE FILE 544 -- Rural Improvement Zones

(Complete summary under LOCAL GOVERNMENT)

This Act allows tax increment financing to be used to pay for improvement projects relating to private lake development in rural improvement zones designated by certain counties.

SENATE FILE 545 -- Centralized State Debt Collection — Information — Drivers Licenses

(Complete summary under TRANSPORTATION)

This Act reestablishes the Driver's License Indebtedness Clearance Pilot Project operated by the State Department of Transportation and the Department of Revenue and Finance.
The Act takes effect May 19, 1997.

HOUSE FILE 4 -- Office of City Assessor

(Complete summary under LOCAL GOVERNMENT)

This Act authorizes a city with a population of more than 125,000 to establish or abolish the office of city assessor, to provide for a city board of review or request a 10-member county board of review, and expand its 10-member board of review by not more than four members to assist with protest hearings.

HOUSE FILE 255 -- Mental Health and Developmental Disability Funding — Allowed Growth Factor Adjustment

(Complete summary under LOCAL GOVERNMENT)

This Act establishes an allowed growth factor adjustment for county mental health, mental retardation, and developmental disabilities (MH/MR/DD) services paid from property taxes in FY 1997-1998 and FY 1998-1999. Appropriations of approximately $6.1 million and $12.5 million are made to the Department of Human Services to distribute to counties for the respective fiscal years to fund a 2.89 percent increase in growth in county expenditures for MH/MR/DD services in each of the fiscal years.

HOUSE FILE 373 -- Unified Law Enforcement District Tax Levies

(Complete summary under LOCAL GOVERNMENT)

This Act legalizes unified law enforcement district tax levies, subject to the five-year limitation, that were authorized prior to July 1, 1983, and which continued to be collected for more than five years or which are currently being collected.

HOUSE FILE 589 -- Boxing and Wrestling

(Complete summary under STATE GOVERNMENT)

This Act requires the promoter of a professional boxing or wrestling match to add the value of complimentary tickets, in excess of 5 percent of the number of tickets sold, to the gross admission receipts total in the written report required to be furnished to the state Commissioner of Athletics. The promoter shall pay a tax of 5 percent of its total admission receipts to the Treasurer of State. If the promoter defaults in paying a tax or costs, the promoter forfeits a $5,000 surety bond posted with the commissioner. The promoter is liable to the state for taxes and penalties relating to professional boxing or wrestling matches.

HOUSE FILE 687 -- Beef Cattle Producers Association

(Complete summary under AGRICULTURE)

This Act increases the amount that may be assessed to support the Iowa Beef Cattle Producers Association from 50 cents for beef cattle and 35 cents for veal calves to up to $1 on beef cattle and veal calves.

HOUSE FILE 704 -- Transportation Regulation

(Complete summary under TRANSPORTATION)

This Act makes changes to statutory provisions affecting the State Department of Transportation, including adding special provisions to Code Section 422.45 regarding the refund of sales and use tax paid on department construction projects.

HOUSE FILE 722 -- Seed and Venture Capital — Capital Investment Board — Tax Credits

(Complete summary under ECONOMIC DEVELOPMENT)

This Act establishes the Capital Investment Board, provides for tax credits, terminates the Iowa Seed Capital Corporation, and establishes the Capital Transition Board.

HOUSE FILE 724 -- Enterprise Zones

(Complete summary under ECONOMIC DEVELOPMENT)

This Act provides tax incentives and assistance to businesses meeting certain criteria for locating into or expanding in enterprise zones designated by certain cities and counties. The incentives and assistance that shall be provided are a 1.5 percent credit from withholding of income tax from wages of new employees for training new employees to work in the zone, a refund of sales and use taxes for utility services furnished in the zone and for materials used in construction contracts fulfilled in the zone, an investment tax credit for investments made in the zone, credit for increasing research activities in the state, and an exemption from all property taxation on the value added to the property used in the business in the zone if the county or city so decides.

HOUSE FILE 732 -- Housing Development

(Complete summary under ECONOMIC DEVELOPMENT)

This Act authorizes cities and counties to provide a property tax exemption of up to $75,000 for certain residential property.

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