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:
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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.
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