House File 812 - Introduced
HOUSE FILE
BY GASKILL
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for a retail business property tax credit for
2 property taxes due, making an appropriation, and including an
3 applicability date provision.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2992HH 81
6 sc/cf/24
PAG LIN
1 1 Section 1. NEW SECTION. 426C.1 RETAIL BUSINESS PROPERTY
1 2 TAX CREDIT == FUND == APPORTIONMENT == PAYMENT.
1 3 1. A retail business property tax credit fund is created.
1 4 There is appropriated annually from the general fund of the
1 5 state to the department of revenue to be credited to the
1 6 retail business property tax credit fund an amount sufficient
1 7 to implement this chapter.
1 8 The director of the department of administrative services
1 9 shall issue warrants on the retail business property tax
1 10 credit fund payable to the county treasurers of the several
1 11 counties of the state under this chapter.
1 12 2. The retail business property tax credit fund shall be
1 13 apportioned each year so as to give a credit against the tax
1 14 on each eligible retail business property in an amount equal
1 15 to twenty percent of the actual levy on the actual value of
1 16 the portion of the property used as retail business property.
1 17 3. The amount due each county shall be paid in two
1 18 payments on November 15 and March 15 of each fiscal year,
1 19 drawn upon warrants payable to the respective county
1 20 treasurers. The two payments shall be as nearly equal as
1 21 possible.
1 22 4. The amount of credits shall be apportioned by each
1 23 county treasurer to the several taxing districts as provided
1 24 by law, in the same manner as though the amount of the credit
1 25 had been paid by the owners. However, the several taxing
1 26 districts shall not draw the funds so credited until after the
1 27 semiannual allocations have been received by the county
1 28 treasurer, as provided in this chapter.
1 29 Sec. 2. NEW SECTION. 426C.2 DEFINITIONS.
1 30 As used in this chapter:
1 31 1. "Retail business owner" means the holder of a sales or
1 32 use tax permit issued pursuant to section 423.36.
1 33 2. "Retail business property" means property assessed for
1 34 property taxation as commercial real estate, that is owned by,
1 35 or rented to, a retail business owner.
2 1 Sec. 3. NEW SECTION. 426C.3 CLAIM FOR CREDIT.
2 2 To claim the credit, a retail business owner shall obtain
2 3 the appropriate forms from the county assessor. The claim
2 4 shall be filed no later than February 1 of each year. A claim
2 5 filed by February 1 is for a credit for taxes due and payable
2 6 in the fiscal year beginning July 1 following the filing
2 7 deadline.
2 8 Sec. 4. NEW SECTION. 426C.4 VERIFICATION OF CLAIMS ==
2 9 APPEALS PERMITTED.
2 10 1. Not later than March 1, the assessor shall remit the
2 11 claims for credit to the county auditor with the assessor's
2 12 recommendation for allowance or disallowance. If the assessor
2 13 recommends disallowance of a claim, the assessor shall submit
2 14 the reasons for the recommendation, in writing, to the county
2 15 auditor.
2 16 The county auditor shall forward the claims to the board of
2 17 supervisors. The board shall allow or disallow the claims.
2 18 If the board disallows a claim, it shall send written notice,
2 19 by mail, to the claimant at the claimant's last known address.
2 20 The notice shall state the reasons for disallowing the claim
2 21 for the credit. The board is not required to send notice that
2 22 a claim is disallowed if the claimant voluntarily withdraws
2 23 the claim.
2 24 2. Any person whose claim is disallowed under the
2 25 provisions of this chapter may appeal from the action of the
2 26 board of supervisors to the district court of the county in
2 27 which the retail business property is located by giving
2 28 written notice of such appeal to the county auditor within
2 29 twenty days from the date of mailing of notice of such action
2 30 by the board of supervisors.
2 31 3. If the claim is filed by a retail business owner who
2 32 rents the retail business property for which the claim is
2 33 filed, upon allowance of the claim by the board of
2 34 supervisors, the county auditor shall notify the owner of the
2 35 retail business property that a claim for a retail business
3 1 property tax credit has been filed. The notification shall
3 2 include a statement that the amount of the credit shall be
3 3 deducted from rental payments due during the fiscal year for
3 4 which the credit is claimed.
3 5 Sec. 5. NEW SECTION. 426C.5 COMPUTATION BY AUDITOR.
3 6 On or before May 15, the county auditor shall compute the
3 7 amount of property taxes to be levied on or estimated to be
3 8 levied on retail business property for which a claim for
3 9 credit has been approved and which are due and payable in the
3 10 ensuing fiscal year. The amount of the credit shall be
3 11 computed as an amount equal to twenty percent of the amount of
3 12 property taxes to be levied on or estimated to be levied on
3 13 the retail business property. On or before May 15 the auditor
3 14 shall certify the total amount of the credits to the
3 15 department of revenue.
3 16 Sec. 6. NEW SECTION. 426C.6 WARRANTS AUTHORIZED BY
3 17 DIRECTOR.
3 18 After receiving from the county auditors the certifications
3 19 provided for in section 426C.5, and during the following
3 20 fiscal year, the director of revenue shall authorize the
3 21 department of administrative services to draw warrants on the
3 22 retail business property tax credit fund payable to the county
3 23 treasurers as provided in section 426C.1. However, if the
3 24 balance in the retail business property tax credit fund is
3 25 insufficient to pay in full the total of the amounts certified
3 26 to the director of revenue, the director shall prorate the
3 27 moneys in the fund for distribution to the county treasurers
3 28 and notify the county auditors of the pro rata percentage on
3 29 or before June 15.
3 30 Sec. 7. NEW SECTION. 426C.7 APPORTIONMENT BY AUDITOR.
3 31 Upon receiving the pro rata percentage from the director of
3 32 revenue, the county auditor shall determine the amount to be
3 33 credited to each parcel of retail business property, and shall
3 34 enter upon tax lists as a credit against the tax levied on
3 35 each parcel of retail business property on which there has
4 1 been made an allowance of credit before delivering said tax
4 2 lists to the county treasurer. Upon receipt of the warrant by
4 3 the county auditor, the auditor shall deliver the warrant to
4 4 the county treasurer for apportionment. The county treasurer
4 5 shall show on each tax receipt the amount of tax credit for
4 6 each parcel of retail business property. In case of change of
4 7 ownership the credit shall follow the title.
4 8 Sec. 8. NEW SECTION. 426C.8 CREDIT APPLIED AGAINST RENT
4 9 PAYMENTS == RENT INCREASE == REQUEST AND ORDER FOR REDUCTION.
4 10 1. An owner of retail business property who rents the
4 11 property to a retail business owner shall apply as a credit
4 12 against rent due the entire amount of the retail business
4 13 property tax credit received by the owner of the retail
4 14 business property. The amount of the credit shall be deducted
4 15 from rental payments due during the fiscal year for which the
4 16 credit is claimed.
4 17 2. If upon petition by a retail business owner the
4 18 department of revenue determines that a landlord has increased
4 19 the retail business owner's rent primarily because the retail
4 20 business owner is entitled to a credit against rent due under
4 21 this chapter, the department of revenue shall request the
4 22 landlord by mail to reduce the rent appropriately.
4 23 In determining whether a landlord has increased a retail
4 24 business owner's rent primarily because the retail business
4 25 owner is entitled to a credit against rent due under this
4 26 chapter, the department of revenue shall consider the
4 27 following factors:
4 28 a. The amount of the increase in rent.
4 29 b. If the landlord operates other rental property, whether
4 30 a similar increase was imposed on the other rental property.
4 31 c. Increased or decreased costs of materials, supplies,
4 32 services, and taxes in the area.
4 33 d. The time the rent was increased.
4 34 e. Other relevant factors in each particular case.
4 35 If the landlord fails to comply with the request of the
5 1 department of revenue within fifteen days after the request is
5 2 mailed by the department, the department of revenue shall
5 3 order the rent reduced by an appropriate amount.
5 4 Sec. 9. NEW SECTION. 426C.9 RULES.
5 5 The director of revenue shall prescribe forms and rules,
5 6 not inconsistent with this chapter, necessary to implement
5 7 this chapter.
5 8 Sec. 10. EFFECTIVE AND APPLICABILITY DATES. This Act
5 9 applies to property taxes due and payable in fiscal years
5 10 beginning on or after July 1, 2006.
5 11 EXPLANATION
5 12 This bill provides a property tax credit for retail
5 13 business property owned or rented by a retail business owner.
5 14 The bill creates a retail business property tax credit fund.
5 15 An amount sufficient to pay the credits is to be appropriated
5 16 annually to the retail business property tax credit fund.
5 17 However, if the appropriation is insufficient to pay the full
5 18 amount of the credit, a pro rata amount will be granted to the
5 19 owner of the retail business property.
5 20 The bill provides that a retail business owner may apply
5 21 for the retail business property tax credit. If the property
5 22 is rented to the retail business owner, the owner of the
5 23 property is to apply the amount of the credit as a deduction
5 24 from rental payments due during the fiscal year for which the
5 25 credit is claimed.
5 26 The bill directs the director of revenue to prescribe forms
5 27 and rules necessary to implement the credit.
5 28 The bill applies to property taxes due and payable in
5 29 fiscal years beginning on or after July 1, 2006.
5 30 LSB 2992HH 81
5 31 sc:nh/cf/24