House
File
609
H-1307
Amend
House
File
609
as
follows:
1
1.
By
striking
everything
after
the
enacting
clause
2
and
inserting:
3
<
Section
1.
Section
331.512,
Code
2013,
is
amended
4
by
adding
the
following
new
subsection:
5
NEW
SUBSECTION
.
4A.
Carry
out
duties
relating
to
6
the
business
property
tax
credit
as
provided
in
chapter
7
426C.
8
Sec.
2.
Section
331.559,
Code
2013,
is
amended
by
9
adding
the
following
new
subsection:
10
NEW
SUBSECTION
.
14A.
Carry
out
duties
relating
to
11
the
business
property
tax
credit
as
provided
in
chapter
12
426C.
13
Sec.
3.
NEW
SECTION
.
426C.1
Definitions.
14
For
the
purposes
of
this
chapter,
unless
the
context
15
otherwise
requires:
16
1.
“Contiguous
parcels”
means
any
of
the
following:
17
a.
Parcels
that
share
a
common
boundary.
18
b.
Parcels
within
the
same
building
or
structure
19
regardless
of
whether
the
parcels
share
a
common
20
boundary.
21
c.
Permanent
improvements
to
the
land
that
are
22
situated
on
one
or
more
parcels
of
land
that
are
23
assessed
and
taxed
separately
from
the
permanent
24
improvements
if
the
parcels
of
land
upon
which
the
25
permanent
improvements
are
situated
share
a
common
26
boundary.
27
2.
“Department”
means
the
department
of
revenue.
28
3.
“Fund”
means
the
business
property
tax
credit
29
fund
created
in
section
426C.2.
30
4.
“Parcel”
means
as
defined
in
section
445.1.
31
5.
“Property
unit”
means
contiguous
parcels
all
32
of
which
are
located
within
the
same
county,
with
the
33
same
property
tax
classification,
are
owned
by
the
same
34
person,
and
are
operated
by
that
person
for
a
common
35
use
and
purpose.
36
Sec.
4.
NEW
SECTION
.
426C.2
Business
property
tax
37
credit
fund
——
appropriation.
38
1.
A
business
property
tax
credit
fund
is
created
39
in
the
state
treasury
under
the
authority
of
the
40
department.
For
the
fiscal
year
beginning
July
1,
41
2014,
there
is
appropriated
from
the
general
fund
of
42
the
state
to
the
department
to
be
credited
to
the
43
fund,
the
sum
of
fifty
million
dollars
to
be
used
44
for
business
property
tax
credits
authorized
in
this
45
chapter.
For
the
fiscal
year
beginning
July
1,
2015,
46
and
each
fiscal
year
thereafter,
there
is
appropriated
47
from
the
general
fund
of
the
state
to
the
department
48
to
be
credited
to
the
fund
an
amount
equal
to
the
49
total
amount
appropriated
by
the
general
assembly
to
50
-1-
HF609.1677
(1)
85
(amending
this
HF
609
to
CONFORM
to
SF
295)
md/sc
1/
7
#1.
the
fund,
as
calculated
in
this
subsection,
in
the
1
previous
fiscal
year.
In
addition,
the
sum
of
fifty
2
million
dollars
shall
be
added
to
the
appropriation
in
3
each
fiscal
year
beginning
on
or
after
July
1,
2015,
4
if
the
revenue
estimating
conference
certifies
during
5
its
final
meeting
of
the
calendar
year
ending
prior
to
6
the
beginning
of
the
fiscal
year
that
the
total
amount
7
of
general
fund
revenues
collected
during
the
fiscal
8
year
ending
during
such
calendar
year
was
at
least
one
9
hundred
four
percent
of
the
total
amount
of
general
10
fund
revenues
collected
during
the
previous
fiscal
11
year.
However,
the
total
appropriation
to
the
fund
12
shall
not
exceed
two
hundred
fifty
million
dollars
for
13
any
one
fiscal
year.
14
2.
Notwithstanding
section
12C.7,
subsection
2,
15
interest
or
earnings
on
moneys
deposited
in
the
fund
16
shall
be
credited
to
the
fund.
Moneys
in
the
fund
are
17
not
subject
to
the
provisions
of
section
8.33
and
shall
18
not
be
transferred,
used,
obligated,
appropriated,
19
or
otherwise
encumbered
except
as
provided
in
this
20
chapter.
21
Sec.
5.
NEW
SECTION
.
426C.3
Claims
for
credit.
22
1.
Each
person
who
wishes
to
claim
the
credit
23
allowed
under
this
chapter
shall
obtain
the
appropriate
24
forms
from
the
assessor
and
file
the
claim
with
the
25
assessor.
The
director
of
revenue
shall
prescribe
26
suitable
forms
and
instructions
for
such
claims,
and
27
make
such
forms
and
instructions
available
to
the
28
assessors.
29
2.
a.
Claims
for
the
business
property
tax
credit
30
shall
be
filed
not
later
than
March
15
preceding
the
31
fiscal
year
during
which
the
taxes
for
which
the
credit
32
is
claimed
are
due
and
payable.
33
b.
A
claim
for
credit
filed
after
the
deadline
for
34
filing
claims
shall
be
considered
as
a
claim
for
the
35
following
year.
36
3.
Upon
the
filing
of
a
claim
and
allowance
of
the
37
credit,
the
credit
shall
be
allowed
on
the
parcel
or
38
property
unit
for
successive
years
without
further
39
filing
as
long
as
the
parcel
or
property
unit
satisfies
40
the
requirements
for
the
credit.
If
the
parcel
or
41
property
unit
ceases
to
qualify
for
the
credit
under
42
this
chapter,
the
owner
shall
provide
written
notice
to
43
the
assessor
by
the
date
for
filing
claims
specified
in
44
subsection
2
following
the
date
on
which
the
parcel
or
45
property
unit
ceases
to
qualify
for
the
credit.
46
4.
The
assessor
shall
remit
the
claims
for
47
credit
to
the
county
auditor
with
the
assessor’s
48
recommendation
for
allowance
or
disallowance.
If
49
the
assessor
recommends
disallowance
of
a
claim,
50
-2-
HF609.1677
(1)
85
(amending
this
HF
609
to
CONFORM
to
SF
295)
md/sc
2/
7
the
assessor
shall
submit
the
reasons
for
the
1
recommendation,
in
writing,
to
the
county
auditor.
2
The
county
auditor
shall
forward
the
claims
and
3
recommendations
to
the
board
of
supervisors.
The
board
4
shall
allow
or
disallow
the
claims.
5
5.
For
each
claim
and
allowance
of
a
credit
for
6
a
property
unit,
the
county
auditor
shall
calculate
7
the
average
of
all
consolidated
levy
rates
applicable
8
to
the
several
parcels
within
the
property
unit.
All
9
claims
for
credit
which
have
been
allowed
by
the
board
10
of
supervisors,
the
actual
value
of
such
parcels
and
11
property
units
applicable
to
the
fiscal
year
for
which
12
the
credit
is
claimed
that
are
subject
to
assessment
13
and
taxation
prior
to
imposition
of
any
applicable
14
assessment
limitation,
the
consolidated
levy
rates
15
for
such
parcels
and
the
average
consolidated
levy
16
rates
for
such
property
units
applicable
to
the
fiscal
17
year
for
which
the
credit
is
claimed,
and
the
taxing
18
districts
in
which
the
parcel
or
property
unit
is
19
located,
shall
be
certified
on
or
before
June
30,
in
20
each
year,
by
the
county
auditor
to
the
department.
21
6.
The
assessor
shall
maintain
a
permanent
file
of
22
current
business
property
tax
credits.
The
assessor
23
shall
file
a
notice
of
transfer
of
property
for
which
a
24
credit
has
been
allowed
when
notice
is
received
from
25
the
office
of
the
county
recorder,
from
the
person
26
who
sold
or
transferred
the
property,
or
from
the
27
personal
representative
of
a
deceased
property
owner.
28
The
county
recorder
shall
give
notice
to
the
assessor
29
of
each
transfer
of
title
filed
in
the
recorder’s
30
office.
The
notice
from
the
county
recorder
shall
31
describe
the
property
transferred,
the
name
of
the
32
person
transferring
title
to
the
property,
and
the
name
33
of
the
person
to
whom
title
to
the
property
has
been
34
transferred.
35
7.
When
all
or
a
portion
of
a
parcel
or
property
36
unit
that
is
allowed
a
credit
under
this
chapter
is
37
sold,
transferred,
or
ownership
otherwise
changes,
the
38
buyer,
transferee,
or
new
owner
who
wishes
to
receive
39
the
credit
shall
refile
the
claim
for
credit.
In
40
addition,
when
a
portion
of
a
parcel
or
property
unit
41
that
is
allowed
a
credit
under
this
chapter
is
sold,
42
transferred,
or
ownership
otherwise
changes,
the
owner
43
of
the
portion
of
the
parcel
or
property
unit
for
which
44
ownership
did
not
change
shall
refile
the
claim
for
45
credit.
46
Sec.
6.
NEW
SECTION
.
426C.4
Eligibility
and
amount
47
of
credit.
48
1.
Each
parcel
classified
and
taxed
as
commercial
49
property,
industrial
property,
or
railway
property
50
-3-
HF609.1677
(1)
85
(amending
this
HF
609
to
CONFORM
to
SF
295)
md/sc
3/
7
under
chapter
434
is
eligible
for
a
credit
under
this
1
chapter.
A
person
may
claim
and
receive
one
credit
2
under
this
chapter
for
each
eligible
parcel
unless
the
3
parcel
is
part
of
a
property
unit
for
which
a
credit
4
is
claimed.
A
person
may
claim
and
receive
one
credit
5
under
this
chapter
for
each
property
unit.
A
credit
6
approved
for
a
property
unit
shall
be
allocated
to
7
the
several
parcels
within
the
property
unit
in
the
8
proportion
that
each
parcel’s
total
amount
of
property
9
taxes
due
and
payable
bears
to
the
total
amount
of
10
property
taxes
due
and
payable
on
the
property
unit.
11
Only
property
units
comprised
of
property
assessed
as
12
commercial
property,
industrial
property,
or
railway
13
property
under
chapter
434
are
eligible
for
a
credit
14
under
this
chapter.
However,
property
that
is
rented
15
or
leased
to
low-income
individuals
and
families
16
as
authorized
by
section
42
of
the
Internal
Revenue
17
Code,
as
amended,
and
that
is
subject
to
assessment
18
procedures
relating
to
section
42
property
under
19
section
441.21,
subsection
2,
for
the
applicable
20
assessment
year,
shall
not
be
eligible
to
receive
a
21
credit
under
this
chapter
or
be
part
of
a
property
unit
22
that
receives
a
credit
under
this
chapter.
23
2.
Using
the
actual
value
of
each
parcel
or
24
property
unit
and
the
consolidated
levy
rate
for
each
25
parcel
or
the
average
consolidated
levy
rate
for
each
26
property
unit,
as
certified
by
the
county
auditor
27
to
the
department
under
section
426C.3,
subsection
28
5,
the
department
shall
calculate,
for
each
fiscal
29
year,
an
initial
amount
of
actual
value
for
use
in
30
determining
the
amount
of
the
credit
for
each
such
31
parcel
or
property
unit
so
as
to
provide
the
maximum
32
possible
credit
according
to
the
credit
formula
and
33
limitations
under
subsection
3,
and
to
provide
a
34
total
dollar
amount
of
credits
against
the
taxes
due
35
and
payable
in
the
fiscal
year
equal
to
ninety-eight
36
percent
of
the
moneys
in
the
fund
following
the
deposit
37
of
the
appropriation
for
the
fiscal
year
and
including
38
interest
or
earnings
credited
to
the
fund.
39
3.
a.
The
amount
of
the
credit
for
each
parcel
or
40
property
unit
for
which
a
claim
for
credit
under
this
41
chapter
has
been
approved
shall
be
calculated
under
42
paragraph
“b”
using
the
lesser
of
the
initial
amount
43
of
actual
value
determined
by
the
department
under
44
subsection
2,
and
the
amount
of
actual
value
of
the
45
parcel
or
property
unit
certified
by
the
county
auditor
46
under
section
426C.3,
subsection
5.
47
b.
The
amount
of
the
credit
for
each
parcel
or
48
property
unit
for
which
a
claim
for
credit
under
49
this
chapter
has
been
approved
shall
be
equal
to
50
-4-
HF609.1677
(1)
85
(amending
this
HF
609
to
CONFORM
to
SF
295)
md/sc
4/
7
the
product
of
the
amount
of
actual
value
determined
1
under
paragraph
“a”
times
the
difference,
stated
2
as
a
percentage,
between
the
assessment
limitation
3
percentage
applicable
to
the
parcel
or
property
unit
4
under
section
441.21,
subsection
5,
and
the
assessment
5
limitation
percentage
applicable
to
residential
6
property
under
section
441.21,
subsection
4,
divided
7
by
one
thousand
dollars,
and
then
multiplied
by
8
the
consolidated
levy
rate
or
average
consolidated
9
levy
rate
per
one
thousand
dollars
of
taxable
value
10
applicable
to
the
parcel
or
property
unit
for
the
11
fiscal
year
for
which
the
credit
is
claimed
as
12
certified
by
the
county
auditor
under
section
426C.3,
13
subsection
5.
14
Sec.
7.
NEW
SECTION
.
426C.5
Payment
to
counties.
15
1.
Annually
the
department
shall
certify
to
the
16
county
auditor
of
each
county
the
amounts
of
the
17
business
property
tax
credits
allowed
in
the
county.
18
Each
county
auditor
shall
then
enter
the
credits
19
against
the
tax
levied
on
each
eligible
parcel
or
20
property
unit
in
the
county,
designating
on
the
tax
21
lists
the
credit
as
being
paid
from
the
fund.
Each
22
taxing
district
shall
receive
its
share
of
the
business
23
property
tax
credit
allowed
on
each
eligible
parcel
or
24
property
unit
in
such
taxing
district
in
the
proportion
25
that
the
levy
made
by
such
taxing
district
upon
the
26
parcel
or
property
unit
bears
to
the
total
levy
upon
27
the
parcel
or
property
unit
by
all
taxing
districts.
28
However,
the
several
taxing
districts
shall
not
draw
29
the
moneys
so
credited
until
after
the
semiannual
30
allocations
have
been
received
by
the
county
treasurer,
31
as
provided
in
this
section.
Each
county
treasurer
32
shall
show
on
each
taxpayer
receipt
the
amount
of
33
credit
received
from
the
fund.
34
2.
The
director
of
revenue
shall
authorize
the
35
department
of
administrative
services
to
draw
warrants
36
on
the
fund
payable
to
the
county
treasurers
of
the
37
several
counties
of
the
state
in
the
amounts
certified
38
by
the
department.
39
3.
The
amount
due
each
county
shall
be
paid
in
two
40
payments
on
November
15
and
March
15
of
each
fiscal
41
year,
drawn
upon
warrants
payable
to
the
respective
42
county
treasurers.
The
two
payments
shall
be
as
nearly
43
equal
as
possible.
44
Sec.
8.
NEW
SECTION
.
426C.6
Appeals.
45
1.
If
the
board
of
supervisors
disallows
a
claim
46
for
credit
under
section
426C.3,
subsection
4,
the
47
board
of
supervisors
shall
send
written
notice,
by
48
mail,
to
the
claimant
at
the
claimant’s
last
known
49
address.
The
notice
shall
state
the
reasons
for
50
-5-
HF609.1677
(1)
85
(amending
this
HF
609
to
CONFORM
to
SF
295)
md/sc
5/
7
disallowing
the
claim
for
the
credit.
The
board
of
1
supervisors
is
not
required
to
send
notice
that
a
claim
2
for
credit
is
disallowed
if
the
claimant
voluntarily
3
withdraws
the
claim.
Any
person
whose
claim
is
4
disallowed
under
the
provisions
of
this
chapter
may
5
appeal
from
the
action
of
the
board
of
supervisors
to
6
the
district
court
of
the
county
in
which
the
parcel
or
7
property
unit
is
located
by
giving
written
notice
of
8
such
appeal
to
the
county
auditor
within
twenty
days
9
from
the
date
of
mailing
of
notice
of
such
action
by
10
the
board
of
supervisors.
11
2.
If
a
claim
for
credit
is
disallowed
by
the
12
board
of
supervisors,
and
such
action
is
subsequently
13
reversed
on
appeal,
the
credit
shall
be
allowed
on
the
14
applicable
parcel
or
property
unit,
and
the
director
of
15
revenue,
the
county
auditor,
and
the
county
treasurer
16
shall
provide
the
credit
and
change
their
books
and
17
records
accordingly.
In
the
event
the
claimant
has
18
paid
one
or
both
of
the
installments
of
the
tax
payable
19
in
the
year
or
years
in
question,
remittance
shall
be
20
made
to
the
claimant
of
the
amount
of
such
credit.
21
The
amount
of
such
credit
awarded
on
appeal
shall
be
22
allocated
and
paid
from
the
balance
remaining
in
the
23
fund.
24
Sec.
9.
NEW
SECTION
.
426C.7
Audit
——
recalculation
25
or
denial.
26
1.
If
on
the
audit
of
a
credit
provided
under
this
27
chapter,
the
director
of
revenue
determines
the
amount
28
of
the
credit
to
have
been
incorrectly
calculated
or
29
that
the
credit
is
not
allowable,
the
director
shall
30
recalculate
the
credit
and
notify
the
claimant
and
the
31
county
auditor
of
the
recalculation
or
denial
and
the
32
reasons
for
it.
The
director
shall
not
adjust
a
credit
33
after
three
years
from
October
31
of
the
year
in
which
34
the
claim
for
the
credit
was
filed.
If
the
credit
has
35
been
paid,
the
director
shall
give
notification
to
the
36
claimant,
the
county
treasurer,
and
the
applicable
37
assessor
of
the
recalculation
or
denial
of
the
credit
38
and
the
county
treasurer
shall
proceed
to
collect
the
39
tax
owed
in
the
same
manner
as
other
property
taxes
due
40
and
payable
are
collected,
if
the
parcel
or
property
41
unit
for
which
the
credit
was
allowed
is
still
owned
42
by
the
claimant.
If
the
parcel
or
property
unit
43
for
which
the
credit
was
allowed
is
not
owned
by
the
44
claimant,
the
amount
may
be
recovered
from
the
claimant
45
by
assessment
in
the
same
manner
that
income
taxes
are
46
assessed
under
sections
422.26
and
422.30.
The
amount
47
of
such
erroneous
credit,
when
collected,
shall
be
48
deposited
in
the
fund.
49
2.
The
claimant
or
board
of
supervisors
may
50
-6-
HF609.1677
(1)
85
(amending
this
HF
609
to
CONFORM
to
SF
295)
md/sc
6/
7
appeal
any
decision
of
the
director
of
revenue
to
the
1
state
board
of
tax
review
pursuant
to
section
421.1,
2
subsection
5.
The
claimant,
the
board
of
supervisors,
3
or
the
director
of
revenue
may
seek
judicial
review
4
of
the
action
of
the
state
board
of
tax
review
in
5
accordance
with
chapter
17A.
6
Sec.
10.
NEW
SECTION
.
426C.8
False
claim
——
7
penalty.
8
A
person
who
makes
a
false
claim
for
the
purpose
of
9
obtaining
a
credit
provided
for
in
this
chapter
or
who
10
knowingly
receives
the
credit
without
being
legally
11
entitled
to
it
is
guilty
of
a
fraudulent
practice.
The
12
claim
for
a
credit
of
such
a
person
shall
be
disallowed
13
and
if
the
credit
has
been
paid
the
amount
shall
be
14
recovered
in
the
manner
provided
in
section
426C.7.
In
15
such
cases,
the
director
of
revenue
shall
send
a
notice
16
of
disallowance
of
the
credit.
17
Sec.
11.
NEW
SECTION
.
426C.9
Rules.
18
The
director
of
revenue
shall
prescribe
forms,
19
instructions,
and
rules
as
necessary,
pursuant
to
20
chapter
17A,
to
carry
out
and
effectuate
the
purposes
21
of
this
chapter.
22
Sec.
12.
IMPLEMENTATION.
Notwithstanding
the
23
deadline
for
filing
claims
established
in
section
24
426C.3,
for
a
credit
against
property
taxes
due
and
25
payable
during
the
fiscal
year
beginning
July
1,
2014,
26
the
claim
for
the
credit
shall
be
filed
not
later
than
27
January
15,
2014.
28
Sec.
13.
APPLICABILITY.
This
Act
applies
to
29
property
taxes
due
and
payable
in
fiscal
years
30
beginning
on
or
after
July
1,
2014.
>
31
2.
Title
page,
by
striking
lines
1
through
6
and
32
inserting
<
An
Act
establishing
a
property
tax
credit
33
for
commercial,
industrial,
and
railway
property,
34
providing
penalties,
making
appropriations,
and
35
including
implementation
and
applicability
provisions.
>
36
______________________________
SANDS
of
Louisa
-7-
HF609.1677
(1)
85
(amending
this
HF
609
to
CONFORM
to
SF
295)
md/sc
7/
7
#2.