House File 323 - Introduced HOUSE FILE BY WISE, DANDEKAR, HUSER, QUIRK, REICHERT, MERTZ, WHITAKER, SHOMSHOR, BUKTA, FREVERT, GASKILL, BELL, JACOBY, and ZIRKELBACH Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for a business property tax credit for property 2 taxes due, making appropriations, and including effective and 3 applicability date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2381YH 81 6 mg/cf/24 PAG LIN 1 1 Section 1. NEW SECTION. 426C.1 BUSINESS PROPERTY TAX 1 2 CREDIT == FUND == APPORTIONMENT == PAYMENT. 1 3 1. A business property tax credit fund is created. There 1 4 is appropriated from the general fund of the state to the 1 5 department of revenue to be credited to the business property 1 6 tax credit fund for the fiscal year beginning July 1, 2005, 1 7 the sum of fifty million dollars and for each fiscal year of 1 8 the fiscal period beginning July 1, 2006, and ending June 30, 1 9 2011, the sum of two hundred million dollars. 1 10 The director of the department of administrative services 1 11 shall issue warrants on the business property tax credit fund 1 12 payable to the county treasurers of the several counties of 1 13 the state under this chapter. 1 14 2. The business property tax credit fund shall be 1 15 apportioned each year so as to give a credit against the tax 1 16 on each eligible business property in the state in an amount 1 17 equal to the actual levy on the actual value for each business 1 18 property. 1 19 3. The amount due each county shall be paid in two 1 20 payments on November 15 and March 15 of each fiscal year, 1 21 drawn upon warrants payable to the respective county 1 22 treasurers. The two payments shall be as nearly equal as 1 23 possible. 1 24 4. The amount of credits shall be apportioned by each 1 25 county treasurer to the several taxing districts as provided 1 26 by law, in the same manner as though the amount of the credit 1 27 had been paid by the owners. However, the several taxing 1 28 districts shall not draw the funds so credited until after the 1 29 semiannual allocations have been received by the county 1 30 treasurer, as provided in this chapter. 1 31 Sec. 2. NEW SECTION. 426C.2 DEFINITION. 1 32 "Business property", as used in this chapter, means 1 33 property assessed for property taxation as commercial and 1 34 industrial real estate, except for property intended for human 1 35 habitation. 2 1 Sec. 3. NEW SECTION. 426C.3 COMPUTATION BY AUDITOR. 2 2 On or before May 15, the county auditor shall compute the 2 3 amount of property taxes to be levied on or estimated to be 2 4 levied on all business property eligible for the business 2 5 property tax credit which are due and payable in the ensuing 2 6 fiscal year and on or before May 15 shall certify the total 2 7 amount to the department of revenue. 2 8 Sec. 4. NEW SECTION. 426C.4 WARRANTS AUTHORIZED BY 2 9 DIRECTOR. 2 10 After receiving from the county auditors the certifications 2 11 provided for in section 426C.3, and during the following 2 12 fiscal year, the director of revenue shall authorize the 2 13 department of administrative services to draw warrants on the 2 14 business property tax credit fund payable to the county 2 15 treasurers as provided in section 426C.1. However, if the 2 16 balance in the business property tax credit fund is 2 17 insufficient to pay in full the total of the amounts certified 2 18 to the director of revenue, the director shall prorate the 2 19 moneys in the fund for distribution to the county treasurers 2 20 and notify the county auditors of the pro rata percentage on 2 21 or before June 15. 2 22 Sec. 5. NEW SECTION. 426C.5 APPORTIONMENT BY AUDITOR. 2 23 Upon receiving the pro rata percentage from the director of 2 24 revenue, the county auditor shall determine the amount to be 2 25 credited to each parcel of business property, and shall enter 2 26 upon tax lists as a credit against the tax levied on each 2 27 parcel of business property on which there has been made an 2 28 allowance of credit before delivering said tax lists to the 2 29 county treasurer. Upon receipt of the warrant by the county 2 30 auditor, the auditor shall deliver the warrant to the county 2 31 treasurer for apportionment. The county treasurer shall show 2 32 on each tax receipt the amount of tax credit for each parcel 2 33 of business property. In case of change of ownership the 2 34 credit shall follow the title. 2 35 Sec. 6. NEW SECTION. 426C.6 RULES. 3 1 The director of revenue shall prescribe forms and rules, 3 2 not inconsistent with this chapter, necessary to carry out its 3 3 purposes. 3 4 Sec. 7. EFFECTIVE AND APPLICABILITY DATES. This Act, 3 5 being deemed of immediate importance, takes effect upon 3 6 enactment and applies to property taxes due and payable in 3 7 fiscal years beginning on or after July 1, 2005. 3 8 EXPLANATION 3 9 This bill provides business property with a property tax 3 10 credit. Business property is real estate that is assessed as 3 11 commercial and industrial property, except for property used 3 12 for human habitation. The credit is equal to the entire 3 13 amount of the property tax levied on the property. However, 3 14 if the appropriations in the bill are insufficient to pay the 3 15 full amount of the credit, a pro rata amount will be granted 3 16 to the owner of the business property. 3 17 The bill appropriates $50 million for FY 2005=2006 and $200 3 18 million for each of the next five fiscal years until FY 2010= 3 19 2011. 3 20 The bill takes effect upon enactment and applies to 3 21 property taxes due and payable in fiscal years beginning on or 3 22 after July 1, 2005. 3 23 LSB 2381YH 81 3 24 mg:nh/cf/24