Senate File 202
SENATE FILE
BY COMMITTEE ON APPROPRIATIONS
(SUCCESSOR TO SSB 1089)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to state financial obligations by making
2 supplemental appropriations for property tax replacement
3 claims and elderly and disabled tax credit reimbursement,
4 providing for the application of debt service proceeds from
5 tobacco settlement authority bonds, providing for related
6 matters, and including an effective date.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. PROPERTY TAX REPLACEMENT CLAIMS. 2002 Iowa
1 2 Acts, chapter 1171, section 175, subsection 13, is amended to
1 3 read as follows:
1 4 13. For industrial machinery, equipment, and computers
1 5 property tax replacement claims under section 427B.19A:
1 6 .................................................. $ 20,990,800
1 7 21,522,792
1 8 Sec. 2. PAYMENT OF CLAIMS. The increase in the funds
1 9 available as a result of section 1 of this Act shall be used
1 10 by the department of revenue and finance to pay industrial
1 11 machinery, equipment, and computers property tax replacement
1 12 claims for the fiscal year beginning July 1, 2002.
1 13 Sec. 3. GUARANTEE OF REPLACEMENT FUNDS. The revaluation
1 14 of all industrial machinery, equipment, and computers
1 15 authorized in section 427B.19B is void and taxes payable in
1 16 the fiscal year beginning July 1, 2003, shall not be levied on
1 17 the amount of such revaluation.
1 18 Sec. 4. ELDERLY AND DISABLED TAX CREDIT.
1 19 1. There is appropriated from the general fund of the
1 20 state to the department of revenue and finance for the fiscal
1 21 year beginning July 1, 2002, and ending June 30, 2003, the
1 22 following amount for the purpose designated:
1 23 For reimbursing counties for granting elderly and disabled
1 24 tax credits as provided in subsection 2:
1 25 .................................................. $ 355,349
1 26 2. a. The appropriation made in subsection 1 shall be
1 27 used to reimburse those counties, to the extent the
1 28 appropriation made in section 425.39, as limited by 2002 Iowa
1 29 Acts, chapter 1171, section 176, as amended by 2002 Iowa Acts,
1 30 Second Extraordinary Session, chapter 1003, section 182, is
1 31 insufficient, that granted to taxpayers the elderly and
1 32 disabled tax credit pursuant to section 425.23 for taxes
1 33 payable in the fiscal year beginning July 1, 2002.
1 34 b. If the amount appropriated is in excess of that needed
1 35 to reimburse all credits granted, the department shall
2 1 determine an additional reimbursement percentage by dividing
2 2 the amount of the excess funds available by the total
2 3 statewide claims. Each county shall grant a carryover elderly
2 4 and disabled tax credit equal to the additional reimbursement
2 5 percentage. The carryover elderly and disabled tax credit
2 6 shall apply against taxes due and payable in the fiscal year
2 7 beginning July 1, 2003, to each property that was granted the
2 8 elderly and disabled tax credit for taxes due and payable in
2 9 the fiscal year beginning July 1, 2002. The carryover credit
2 10 shall be granted whether the property or taxpayer continues to
2 11 qualify for the elderly and disabled tax credit and shall not
2 12 be used in computing the regular elderly and disabled tax
2 13 credit for taxes due and payable in the fiscal year beginning
2 14 July 1, 2003. A county granting the carryover tax credit
2 15 shall be reimbursed for the amount of the credit from the
2 16 appropriation made in subsection 1. Payments made pursuant to
2 17 this paragraph "b" shall be made one=half on November 15,
2 18 2003, and one=half on March 15, 2004.
2 19 Notwithstanding sections 8.33 and 425.39, any funds
2 20 remaining from the appropriation made in subsection 1 shall
2 21 not revert but shall be available for use as provided in this
2 22 subsection for the succeeding fiscal year.
2 23 Sec. 5. Section 12E.12, subsection 8, Code 2003, is
2 24 amended to read as follows:
2 25 8. With respect to the payment of certain debt service,
2 26 the debt service to be paid shall be those installments of
2 27 debt service on bonds selected by the treasurer of state and
2 28 identified in the authority's tax certificate delivered at the
2 29 time of the issuance of the bonds issued pursuant to this
2 30 chapter, or as otherwise selected by the treasurer of state.
2 31 Once the bonds and the installments of debt service thereon
2 32 are so selected, that debt service and bonds shall not be
2 33 paid, or provided to be paid, from any other source including
2 34 the state or any of its departments or agencies. Provided,
2 35 however, that if funds are not appropriated to pay debt
3 1 service on such bonds when due, the issuing agency shall pay
3 2 such the debt service from any available source as provided in
3 3 the bond covenants for such bonds. To the extent that this
3 4 section does not allow proceeds of previously issued refunding
3 5 bonds to be applied for the purpose of the refunding, the
3 6 issuing agency may expend such proceeds to improve, remodel,
3 7 or repair buildings or other infrastructure upon authorization
3 8 of the issuing agency's authority.
3 9 Sec. 6. Section 427B.19B, Code 2003, is repealed.
3 10 Sec. 7. EFFECTIVE DATE. This Act, being deemed of
3 11 immediate importance, takes effect upon enactment.
3 12 EXPLANATION
3 13 During the 2002 Regular Session, the general assembly
3 14 limited the amount the state would pay in FY 2002=2003 to
3 15 local jurisdictions for their industrial machinery, equipment,
3 16 and computers property tax replacement claims. This bill
3 17 increases the amount of state payment. Present law authorizes
3 18 the county to revalue the industrial machinery, equipment, and
3 19 computers and levy taxes on the increased value to make up for
3 20 insufficient funding by the state of their claims as a result
3 21 of the general assembly's action to limit state payments for
3 22 tax replacement claims. The bill voids this authorization to
3 23 revalue and levy taxes. In addition, this authorization is
3 24 repealed from the Code.
3 25 The bill makes an appropriation to reimburse counties for
3 26 granting the elderly and disabled tax credit for taxes payable
3 27 in FY 2002=2003. If the amount appropriated is in excess of
3 28 the amounts needed to reimburse all credits granted in the
3 29 2002 regular and special sessions, the excess is to be used to
3 30 reimburse counties for granting a carryover tax credit. This
3 31 carryover tax credit will be for taxes payable in FY 2003=2004
3 32 and is granted whether the property or the taxpayer continues
3 33 to qualify for the elderly and disabled tax credit.
3 34 The bill amends Code section 12E.12(8) to allow the issuing
3 35 agency of refunding bonds for tobacco settlement authority
4 1 bonds, which cannot be used for such refunding, to be used for
4 2 capital infrastructure improvements at the issuing agency.
4 3 The bill takes effect upon enactment.
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