Senate File 2223
SENATE FILE
BY LUNDBY
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to a property tax reimbursement for certain
2 services provided by certain commercial property owners or
3 taxpayers.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5377XS 80
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PAG LIN
1 1 Section 1. NEW SECTION. 384.12A PROPERTY TAX
1 2 REIMBURSEMENT FOR PROVISION OF CERTAIN CITY SERVICES TO
1 3 COMMERCIAL PROPERTY.
1 4 1. For land located within a city and assessed as
1 5 commercial property for purposes of property taxation, if such
1 6 commercial property is used primarily for residential
1 7 purposes, a property owner or taxpayer may apply to the city
1 8 council for a property tax reimbursement of up to twenty=five
1 9 percent of the property taxes levied on the property by the
1 10 city and due and payable in the following fiscal year. To be
1 11 eligible for the reimbursement, the property owner or taxpayer
1 12 must certify to the city council at least one of the
1 13 following:
1 14 a. That the property owner or taxpayer provided street
1 15 repair and cleanup on the property in lieu of the city
1 16 providing such services.
1 17 b. That the property owner or taxpayer provided for solid
1 18 waste removal on the property in lieu of the city providing
1 19 such service.
1 20 c. That the property owner or taxpayer provided fixtures,
1 21 equipment, accessories, improvements, maintenance, or repair
1 22 relating to the water supply or sewer system that when
1 23 provided by the city are not normally billed to an individual
1 24 property owner or taxpayer.
1 25 2. a. A property owner or taxpayer who wishes to qualify
1 26 for one or more of the reimbursements provided in this section
1 27 shall obtain the appropriate forms for filing for the
1 28 reimbursement from the city clerk. The claim shall be filed
1 29 on or before January 15 of the calendar year in which the
1 30 fiscal year for which the claim is first allowed commences. A
1 31 claim filed after January 15 shall be considered as a claim
1 32 filed for the fiscal year commencing in the following calendar
1 33 year.
1 34 b. Upon the filing and allowance of the reimbursement
1 35 claim, the claim shall be allowed on that property for
2 1 successive years without further filing until the property
2 2 owner or taxpayer ceases to provide the service, in lieu of
2 3 the city, for which the claim was filed.
2 4 c. The city clerk shall forward the claims to the city
2 5 council. The council shall allow or disallow the claims. If
2 6 the council disallows a claim, it shall send written notice,
2 7 by mail, to the claimant at the claimant's last known address.
2 8 The notice shall state the reasons for disallowing a claim for
2 9 the reimbursement. The council is not required to send notice
2 10 that a claim is disallowed if the claimant voluntarily
2 11 withdraws the claim.
2 12 d. On or before March 1 of each fiscal year, the city
2 13 council shall take action to allow or disallow all claims
2 14 filed for that fiscal year with the city clerk. The city
2 15 clerk shall retain a permanent file of current property tax
2 16 reimbursement claims filed with the clerk pursuant to this
2 17 section.
2 18 3. The amount of the reimbursement allowed shall be as
2 19 follows:
2 20 a. If the claim is filed for purposes of subsection 1,
2 21 paragraph "a", an amount equal to ten percent of the property
2 22 taxes levied on the property by the city and collected for the
2 23 fiscal year.
2 24 b. If the claim is filed for purposes of subsection 1,
2 25 paragraph "b", an amount equal to ten percent of the property
2 26 taxes levied on the property by the city and collected for the
2 27 fiscal year.
2 28 c. If the claim is filed for purposes of subsection 1,
2 29 paragraph "c", an amount equal to five percent of the property
2 30 taxes levied on the property by the city and collected for the
2 31 fiscal year.
2 32 4. On or before May 31 of each fiscal year, the city clerk
2 33 shall reimburse each claimant the amount of property taxes
2 34 paid in that fiscal year by the claimant equal to the amount
2 35 of the reimbursement due the claimant. The reimbursement
3 1 shall be mailed to the claimant's last known address. A
3 2 claimant is required to notify the city clerk of any change in
3 3 the claimant's mailing address.
3 4 Sec. 2. IMPLEMENTATION OF ACT. Section 25B.2, subsection
3 5 3, shall not apply to this Act.
3 6 EXPLANATION
3 7 This bill provides a property owner or taxpayer with a
3 8 property tax reimbursement of city property taxes paid if the
3 9 property is assessed as commercial property, if such property
3 10 is used primarily for residential purposes, and if the
3 11 property owner or taxpayer provides certain services on or to
3 12 the property in lieu of the city providing such services.
3 13 The bill provides that if a property owner or taxpayer
3 14 provides services relating to solid waste collection in lieu
3 15 of the city providing such service, the amount of the
3 16 reimbursement is equal to 10 percent of city property taxes
3 17 paid. If a property owner or taxpayer provides street repair
3 18 and street maintenance to the property in lieu of the city
3 19 providing such service, the amount of the reimbursement is
3 20 equal to 10 percent of city property taxes paid. If a
3 21 property owner or taxpayer provided fixtures, equipment,
3 22 accessories, improvements, maintenance, or repair relating to
3 23 the water supply or sewer system that when provided by the
3 24 city are not normally billed to an individual property owner
3 25 or taxpayer, the amount of the reimbursement is equal to 5
3 26 percent of city property taxes paid.
3 27 The bill also provides that once a reimbursement claim is
3 28 allowed, the claim shall be allowed for successive years
3 29 without further filing until the property owner or taxpayer
3 30 ceases to provide the service for which the claim was filed.
3 31 The bill provides that the city shall, on or before May 31
3 32 of each year, reimburse a property owner or taxpayer who has
3 33 properly filed a claim with the city.
3 34 The bill may include a state mandate as defined in Code
3 35 section 25B.3. The bill makes inapplicable Code section
4 1 25B.2, subsection 3, which would relieve a political
4 2 subdivision from complying with a state mandate if funding for
4 3 the cost of the state mandate is not provided or specified.
4 4 Therefore, political subdivisions are required to comply with
4 5 any state mandate included in the bill.
4 6 LSB 5377XS 80
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