House File 2066
HOUSE FILE
BY MADDOX
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing an additional homestead property tax credit
2 reimbursement payment for certain consolidated local
3 governments.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5466HH 80
6 sc/pj/5
PAG LIN
1 1 Section 1. Section 425.1, subsections 1 through 4, Code
1 2 Supplement 2003, are amended to read as follows:
1 3 1. A homestead credit fund is created. There is
1 4 appropriated annually from the general fund of the state to
1 5 the department of revenue to be credited to the homestead
1 6 credit fund, an amount sufficient to implement this chapter
1 7 pay reimbursements as provided in subsection 2A.
1 8 The director of the department of administrative services
1 9 shall issue warrants on the homestead credit fund payable to
1 10 the county treasurers of the several counties of the state
1 11 under this chapter in the amounts necessary to pay
1 12 reimbursements as provided in subsection 2A.
1 13 2. The homestead credit fund shall be apportioned each
1 14 year so as to give a credit against the tax on each eligible
1 15 homestead in the state in an amount equal to the actual levy
1 16 on the first four thousand eight hundred fifty dollars of
1 17 actual value for each homestead and to provide the payment
1 18 amount specified in subsection 2A, paragraph "b", to each
1 19 city=county consolidated government and each community
1 20 commonwealth.
1 21 3. The amount due each county shall be paid in two
1 22 payments on November 15 and March 15 of each fiscal year,
1 23 drawn upon warrants payable to the respective county
1 24 treasurers. The two payments shall be as nearly equal as
1 25 possible. Payments to city=county consolidated governments
1 26 and community commonwealths for purposes of subsection 2A,
1 27 paragraph "b", shall be made by a separate warrant from that
1 28 paid to the county for purposes of subsection 2A, paragraph
1 29 "a".
1 30 4. Annually the department of revenue shall estimate the
1 31 credit not to exceed the actual levy on the first four
1 32 thousand eight hundred fifty dollars of actual value of each
1 33 eligible homestead, and shall certify to the county auditor of
1 34 each county the credit and its amount in dollars. Annually
1 35 the department shall also estimate the payment amount for
2 1 purposes of subsection 2A, paragraph "b", and shall certify
2 2 such amount to the county auditor of the applicable city=
2 3 county consolidated government or community commonwealth.
2 4 Each county auditor shall then enter the credit against the
2 5 tax levied on each eligible homestead in each county payable
2 6 during the ensuing year, designating on the tax lists the
2 7 credit as being from the homestead credit fund, and credit
2 8 shall then be given to the several taxing districts in which
2 9 eligible homesteads are located in an amount equal to the
2 10 credits allowed on the taxes of the homesteads. The amount of
2 11 credits shall be apportioned by each county treasurer to the
2 12 several taxing districts as provided by law, in the same
2 13 manner as though the amount of the credit had been paid by the
2 14 owners of the homesteads. However, the several taxing
2 15 districts shall not draw the funds so credited until after the
2 16 semiannual allocations have been received by the county
2 17 treasurer, as provided in this chapter. Each county treasurer
2 18 shall show on each tax receipt the amount of credit received
2 19 from the homestead credit fund
2 20 Sec. 2. Section 425.1, Code Supplement 2003, is amended by
2 21 adding the following new subsection:
2 22 NEW SUBSECTION. 2A. The credit reimbursement amounts
2 23 shall be paid as follows:
2 24 a. An amount sufficient to pay to each county one hundred
2 25 percent of each homestead credit.
2 26 b. An amount sufficient to pay to each city=county
2 27 consolidated government established pursuant to sections
2 28 331.247 through 331.252 or community commonwealth established
2 29 pursuant to sections 331.260 through 331.263 five percent of
2 30 the total homestead credits for homesteads located in that
2 31 city=county consolidated government charter area or area
2 32 comprising a community commonwealth charter government.
2 33 c. If funds are not sufficient to pay the amounts required
2 34 under paragraphs "a" and "b", the amount computed under
2 35 paragraph "b" shall be paid first from the homestead credit
3 1 fund.
3 2 The amount computed each year under paragraph "b" shall be
3 3 paid to each eligible city=county consolidated government and
3 4 each eligible community commonwealth for a period of ten
3 5 fiscal years beginning with the first fiscal year commencing
3 6 following adoption of the city=county consolidated charter or
3 7 the community commonwealth charter. Such amounts, when paid,
3 8 shall be deposited into the general fund of the respective
3 9 city=county consolidated governments and community
3 10 commonwealths and use of such funds shall be at the discretion
3 11 of the government receiving the funds.
3 12 To be eligible for payments under paragraph "b", the county
3 13 auditor of the city=county consolidated government or
3 14 community commonwealth shall give written notice of the result
3 15 of the election at which the city=county consolidated charter
3 16 or the community commonwealth charter was approved by sending
3 17 a copy of the abstract of the votes from the election to the
3 18 director of revenue within sixty days of the date of the
3 19 election.
3 20 EXPLANATION
3 21 This bill provides an additional homestead property tax
3 22 credit reimbursement payment to city=county consolidated
3 23 governments and community commonwealths in an amount equal to
3 24 5 percent of the reimbursement due those governments for the
3 25 homestead tax credits allowed on homesteads located in each
3 26 government's area.
3 27 The bill provides that the payments are to be made for 10
3 28 fiscal years following adoption of the city=county
3 29 consolidated charter or the community commonwealth charter.
3 30 The bill further provides that the additional moneys are to
3 31 be deposited in the general fund of the city=county
3 32 consolidated government or community commonwealth for use at
3 33 the discretion of the receiving government.
3 34 LSB 5466HH 80
3 35 sc/pj/5