House File 2255
HOUSE FILE
BY STEVENS, STRUYK, QUIRK,
and DANDEKAR
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the increase in the amount reimbursed by the
2 state for loss of property taxes due to the allowance of the
3 military service tax exemption and including effective and
4 applicability date provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 6198YH 80
7 mg/pj/5
PAG LIN
1 1 Section 1. Section 25B.7, subsection 2, paragraph c, Code
1 2 Supplement 2003, is amended to read as follows:
1 3 c. Military service property tax credit and exemption
1 4 pursuant to chapter 426A, to the extent of six dollars and
1 5 ninety=two cents per thousand dollars of assessed value of the
1 6 exempt property.
1 7 Sec. 2. Section 426A.2, Code 2003, is amended to read as
1 8 follows:
1 9 426A.2 MILITARY SERVICE TAX CREDIT.
1 10 The moneys shall be apportioned each year so as to replace
1 11 all or a portion of the tax which would be due on property
1 12 eligible for military service tax exemption in the state, if
1 13 the property were subject to taxation, the amount of the
1 14 credit to be not more than six dollars and ninety=two cents
1 15 per thousand dollars of assessed value of property which would
1 16 be subject to the tax, except for the military service tax
1 17 exemption.
1 18 Sec. 3. Section 426A.5, Code 2003, is amended to read as
1 19 follows:
1 20 426A.5 PROPORTIONATE SHARES TO DISTRICTS.
1 21 The amount of credits received under this chapter shall
1 22 then be apportioned by each county treasurer to the several
1 23 taxing districts in the same manner as though the amount of
1 24 the credit had been paid by the owner of the property
1 25 receiving the credit. Each taxing district shall receive its
1 26 proportionate share of the military service tax credit allowed
1 27 on each and every tax exemption allowed in such the taxing
1 28 district, in the proportion that the levy made by such taxing
1 29 district upon general property bears to the total levy upon
1 30 all property subject to general property taxation by all
1 31 taxing districts imposing a general property tax in such
1 32 taxing district based upon the amount of property taxes which
1 33 would be due on the property receiving the credit, if the
1 34 property were subject to taxation.
1 35 Sec. 4. EFFECTIVE AND APPLICABILITY DATE. This Act, being
2 1 deemed of immediate importance, takes effect upon enactment
2 2 and applies to the military service property tax exemption
2 3 allowed for property taxes due and payable during fiscal years
2 4 beginning on or after July 1, 2004.
2 5 EXPLANATION
2 6 Under present law, the state will reimburse local
2 7 governments for the lost tax revenue resulting from the
2 8 military service tax exemption. However, the amount of
2 9 reimbursement is limited to $6.92 per $1,000 of the assessed
2 10 value of the exemption. Since the consolidated levies
2 11 throughout the state exceed $6.92 per $1,000 of the assessed
2 12 value, the local governments are not reimbursed for all the
2 13 lost property tax revenue. This bill increases the amount of
2 14 the reimbursement to equal the full amount of the property
2 15 taxes lost by local governments as a result of the military
2 16 service tax exemption.
2 17 The bill takes effect upon enactment and applies to taxes
2 18 due and payable during fiscal years beginning on or after July
2 19 1, 2004.
2 20 LSB 6198YH 80
2 21 mg/pj/5