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 toimplement this chapter1 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