Senate File 158 - Introduced
SENATE FILE
BY MILLER
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to taxation and fees by making changes to the
2 state corporate and individual income taxes, the state sales
3 and use taxes, certain use of revenues from the state sales
4 tax, certain motor vehicle registration fees, assessment of
5 property for purposes of property taxation, county and city
6 budgets funded primarily by property taxes, school district
7 budgets funded primarily by state and local taxes, state
8 mandates funding, tax increment financing districts, local
9 assessors, and property tax exemptions and credits, and
10 including effective and applicability date provisions.
11 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
12 TLSB 2366SS 81
13 sc/cf/24
PAG LIN
1 1 DIVISION I
1 2 INDIVIDUAL INCOME TAX
1 3 Section 1. Section 422.4, subsection 1, paragraphs b and
1 4 c, Code 2005, are amended to read as follows:
1 5 b. "Cumulative inflation factor" means the product of the
1 6 annual inflation factor for the 1988 2006 calendar year and
1 7 all annual inflation factors for subsequent calendar years as
1 8 determined pursuant to this subsection. The cumulative
1 9 inflation factor applies to all tax years beginning on or
1 10 after January 1 of the calendar year for which the latest
1 11 annual inflation factor has been determined.
1 12 c. The annual inflation factor for the 1988 2006 calendar
1 13 year is one hundred percent.
1 14 Sec. 2. Section 422.4, subsection 2, Code 2005, is amended
1 15 by striking the subsection.
1 16 Sec. 3. Section 422.4, subsection 16, Code 2005, is
1 17 amended to read as follows:
1 18 16. The words "taxable "Taxable income" mean means the net
1 19 income as defined in section 422.7 minus the deductions
1 20 allowed by section 422.9, in the case of individuals; in. In
1 21 the case of estates or trusts, the words "taxable income" mean
1 22 means the taxable income (without, without a deduction for
1 23 personal exemption) exemption, as computed for federal income
1 24 tax purposes under the Internal Revenue Code, but with the
1 25 adjustments specified in section 422.7 plus the Iowa income
1 26 tax deducted in computing the federal taxable income and minus
1 27 federal income taxes as provided in section 422.9.
1 28 Sec. 4. Section 422.5, subsection 1, Code 2005, is amended
1 29 by striking the subsection and inserting in lieu thereof the
1 30 following:
1 31 1. a. A tax is imposed upon every resident and
1 32 nonresident of the state which tax shall be levied, collected,
1 33 and paid annually upon and with respect to the entire taxable
1 34 income at the rates as follows:
1 35 (1) On all taxable income from zero through thirty
2 1 thousand dollars, four percent.
2 2 (2) On all taxable income exceeding thirty thousand
2 3 dollars but not exceeding fifty thousand dollars, five
2 4 percent.
2 5 (3) On all taxable income exceeding fifty thousand
2 6 dollars, six percent.
2 7 b. (1) The tax imposed upon the taxable income of a
2 8 nonresident shall be computed by reducing the amount
2 9 determined pursuant to paragraph "a" by the amounts of
2 10 nonrefundable credits under this division and by multiplying
2 11 this resulting amount by a fraction of which the nonresident's
2 12 net income allocated to Iowa, as determined in section 422.8,
2 13 subsection 2, paragraph "a", is the numerator and the
2 14 nonresident's total net income computed under section 422.7 is
2 15 the denominator. This provision also applies to individuals
2 16 who are residents of Iowa for less than the entire tax year.
2 17 (2) The tax imposed upon the taxable income of a resident
2 18 shareholder in an S corporation which has in effect for the
2 19 tax year an election under subchapter S of the Internal
2 20 Revenue Code and carries on business within and without the
2 21 state may be computed by reducing the amount determined
2 22 pursuant to paragraph "a" by the amounts of nonrefundable
2 23 credits under this division and by multiplying this resulting
2 24 amount by a fraction of which the resident's net income
2 25 allocated to Iowa, as determined in section 422.8, subsection
2 26 2, paragraph "b", is the numerator and the resident's total
2 27 net income computed under section 422.7 is the denominator.
2 28 If a resident shareholder has elected to take advantage of
2 29 this subparagraph, and for the next tax year elects not to
2 30 take advantage of this subparagraph, the resident shareholder
2 31 shall not reelect to take advantage of this subparagraph for
2 32 the three tax years immediately following the first tax year
2 33 for which the shareholder elected not to take advantage of
2 34 this subparagraph, unless the director consents to the
2 35 reelection. This subparagraph also applies to individuals who
3 1 are residents of Iowa for less than the entire tax year.
3 2 Sec. 5. Section 422.5, subsection 5, Code 2005, is amended
3 3 to read as follows:
3 4 5. Upon determination of the latest cumulative inflation
3 5 factor, the director shall multiply each dollar amount set
3 6 forth in subsection 1, paragraphs "a" through "i" of this
3 7 section paragraph "a", by this cumulative inflation factor,
3 8 shall round off the resulting product to the nearest one
3 9 dollar, and shall incorporate the result into the income tax
3 10 forms and instructions for each tax year.
3 11 Sec. 6. Section 422.7, Code 2005, is amended by striking
3 12 the section and inserting in lieu thereof the following:
3 13 422.7 "NET INCOME" == HOW COMPUTED.
3 14 The term "net income" means the adjusted gross income
3 15 before the net operating loss deduction as properly computed
3 16 for federal income tax purposes under the Internal Revenue
3 17 Code, with the following adjustments:
3 18 1. The adjusted gross income is adjusted by adding the sum
3 19 of the following:
3 20 a. Add the amount of federal income tax refunds received
3 21 in a tax year beginning on or after January 1, 2006, but
3 22 before January 1, 2009, to the extent the federal tax refund
3 23 is for a tax year beginning before January 1, 2006.
3 24 b. Add interest and dividends from foreign securities and
3 25 from securities of state and other political subdivisions
3 26 exempt from federal income tax under the Internal Revenue
3 27 Code.
3 28 c. Add interest and dividends from regulated investment
3 29 companies exempt from federal income tax under the Internal
3 30 Revenue Code.
3 31 d. Add, to the extent not already included, income from
3 32 the sale of obligations of the state and its political
3 33 subdivisions. Income from the sale of these obligations is
3 34 exempt from the taxes imposed by this division only if the law
3 35 authorizing these obligations specifically exempts the income
4 1 from the sale from the state individual income tax.
4 2 e. Add the amount resulting from the cancellation of a
4 3 participation agreement refunded to the taxpayer as a
4 4 participant in the Iowa educational savings plan trust under
4 5 chapter 12D to the extent previously deducted as a
4 6 contribution to the trust.
4 7 2. The adjusted gross income is adjusted by subtracting
4 8 the sum of the following:
4 9 a. Subtract the amount of federal income taxes paid or
4 10 accrued, as the case may be, during a tax year beginning on or
4 11 after January 1, 2006, but before January 1, 2009, to the
4 12 extent the federal tax paid is for a tax year beginning before
4 13 January 1, 2006.
4 14 b. Subtract interest and dividends from federal
4 15 securities.
4 16 c. Subtract the loss on the sale or exchange of a share of
4 17 a regulated investment company held for six months or less to
4 18 the extent the loss was disallowed under section 852(b)(4)(B)
4 19 of the Internal Revenue Code.
4 20 d. Subtract fifty percent of the net capital gain from the
4 21 sales of property held for at least two years.
4 22 e. Subtract, to the extent included, the amount of
4 23 additional social security benefits taxable under the Internal
4 24 Revenue Code for tax years beginning on or after January 1,
4 25 1994. The amount of social security benefits taxable as
4 26 provided in section 86 of the Internal Revenue Code, as
4 27 amended up to and including January 1, 1993, continues to
4 28 apply for state income tax purposes for tax years beginning on
4 29 or after January 1, 1994. Married taxpayers, who file a joint
4 30 federal income tax return and who elect to file separate
4 31 returns or who elect separate filing on a combined return for
4 32 state income tax purposes, shall allocate between the spouses
4 33 the amount of benefits subtracted from net income in the ratio
4 34 of the social security benefits received by each spouse to the
4 35 total of these benefits received by both spouses.
5 1 f. For an individual, the surviving spouse of an
5 2 individual, or a survivor having an insurable interest in an
5 3 individual, subtract, to the extent included, the total amount
5 4 of a governmental or other pension or retirement pay,
5 5 including, but not limited to, defined benefit or defined
5 6 contribution plans, annuities, individual retirement accounts,
5 7 plans maintained or contributed to by an employer, or
5 8 maintained or contributed to by a self=employed person as an
5 9 employer, and deferred compensation plans or any earnings
5 10 attributable to the deferred compensation plans.
5 11 g. Subtract, to the extent not otherwise deducted,
5 12 interest paid on any qualified education loan as defined in
5 13 section 221 of the Internal Revenue Code.
5 14 h. Notwithstanding the method for computing income from an
5 15 installment sale under section 453 of the Internal Revenue
5 16 Code, as defined in section 422.3, the method to be used in
5 17 computing income from an installment sale shall be the method
5 18 under section 453 of the Internal Revenue Code, as amended up
5 19 to and including January 1, 2000. A taxpayer affected by this
5 20 paragraph shall make adjustments in the adjusted gross income
5 21 pursuant to rules adopted by the director.
5 22 The adjustment to net income provided in this paragraph "h"
5 23 is repealed for tax years beginning on or after January 1,
5 24 2002. However, to the extent that a taxpayer using the
5 25 accrual method of accounting reported the entire capital gain
5 26 from the sale or exchange of property on the Iowa return for
5 27 the tax year beginning in the 2001 calendar year and the
5 28 capital gain was reported on the installment method on the
5 29 federal income tax return, any additional installment from the
5 30 capital gain reported for federal income tax purposes is not
5 31 to be included in net income in tax years beginning on or
5 32 after January 1, 2002.
5 33 i. Subtract, if the taxpayer is the owner of an individual
5 34 development account certified under chapter 541A at any time
5 35 during the tax year, all of the following:
6 1 (1) Contributions made to the account by persons and
6 2 entities, other than the taxpayer, as authorized in chapter
6 3 541A.
6 4 (2) The amount of any savings refund authorized under
6 5 section 541A.3, subsection 1.
6 6 (3) Earnings from the account.
6 7 j. (1) Subtract the maximum contribution rate that may be
6 8 deducted for income tax purposes as a participant in the Iowa
6 9 educational savings plan trust pursuant to section 12D.3,
6 10 subsection 1, paragraph "a".
6 11 (2) Subtract, to the extent included, income from interest
6 12 and earnings received from the Iowa educational savings plan
6 13 trust created in chapter 12D.
6 14 (3) Subtract, to the extent not deducted for federal
6 15 income tax purposes, the amount of any gift, grant, or
6 16 donation made to the Iowa educational savings plan trust for
6 17 deposit in the endowment fund of that trust.
6 18 3. a. The additional first=year depreciation allowance
6 19 authorized in section 168(k) of the Internal Revenue Code, as
6 20 enacted by Pub. L. No. 107=147, section 101, does not apply in
6 21 computing net income for state tax purposes. If the taxpayer
6 22 has taken such deduction in computing federal adjusted gross
6 23 income, the following adjustments shall be made:
6 24 (1) Add the total amount of depreciation taken on all
6 25 property for which the election under section 168(k) of the
6 26 Internal Revenue Code was made for the tax year.
6 27 (2) Subtract an amount equal to depreciation allowed on
6 28 such property for the tax year using the modified accelerated
6 29 cost recovery system depreciation method applicable under
6 30 section 168 of the Internal Revenue Code without regard to
6 31 section 168(k).
6 32 (3) Any other adjustments to gains or losses to reflect
6 33 the adjustments made in subparagraphs (1) and (2) pursuant to
6 34 rules adopted by the director.
6 35 b. The additional first=year depreciation allowance
7 1 authorized in section 168(k)(4) of the Internal Revenue Code,
7 2 as enacted by Pub. L. No. 108=27, shall apply in computing net
7 3 income for state tax purposes, for qualified property acquired
7 4 after May 5, 2003, and before January 1, 2005.
7 5 Sec. 7. Section 422.8, subsection 2, paragraph a, Code
7 6 2005, is amended to read as follows:
7 7 a. Nonresident's net income allocated to Iowa is the net
7 8 income, or portion of net income, which is derived from a
7 9 business, trade, profession, or occupation carried on within
7 10 this state or income from any property, trust, estate, or
7 11 other source within Iowa. However, income derived from a
7 12 business, trade, profession, or occupation carried on within
7 13 this state and income from any property, trust, estate, or
7 14 other source within Iowa shall not include distributions from
7 15 pensions, including defined benefit or defined contribution
7 16 plans, annuities, individual retirement accounts, and deferred
7 17 compensation plans or any earnings attributable thereto so
7 18 long as the distribution is directly related to an
7 19 individual's documented retirement and received while the
7 20 individual is a nonresident of this state. If a business,
7 21 trade, profession, or occupation is carried on partly within
7 22 and partly without the state, only the portion of the net
7 23 income which is fairly and equitably attributable to that part
7 24 of the business, trade, profession, or occupation carried on
7 25 within the state is allocated to Iowa for purposes of section
7 26 422.5, subsection 1, paragraph "j" "b", and section 422.13 and
7 27 income from any property, trust, estate, or other source
7 28 partly within and partly without the state is allocated to
7 29 Iowa in the same manner, except that annuities, interest on
7 30 bank deposits and interest=bearing obligations, and dividends
7 31 are allocated to Iowa only to the extent to which they are
7 32 derived from a business, trade, profession, or occupation
7 33 carried on within the state.
7 34 Sec. 8. Section 422.8, subsection 4, Code 2005, is amended
7 35 by striking the subsection.
8 1 Sec. 9. Section 422.9, unnumbered paragraph 1 and
8 2 subsections 1 and 2, Code 2005, are amended by striking the
8 3 unnumbered paragraph and the subsections and inserting in lieu
8 4 thereof the following:
8 5 In computing taxable income of individuals, there shall be
8 6 deducted from net income the following:
8 7 Sec. 10. Section 422.9, subsections 4 through 7, Code
8 8 2005, are amended by striking the subsections.
8 9 Sec. 11. NEW SECTION. 422.11K LONG=TERM CARE INSURANCE
8 10 TAX CREDIT.
8 11 The taxes imposed under this division less the credits
8 12 allowed under section 422.12 shall be reduced by a long=term
8 13 care insurance tax credit. The amount of the credit is equal
8 14 to the first two hundred dollars of the premium costs paid
8 15 during the tax year on each qualified long=term care insurance
8 16 contract that offers coverage to the taxpayer, the taxpayer's
8 17 spouse or dependent, or a parent or grandparent of the
8 18 taxpayer or the taxpayer's spouse. Any credit in excess of
8 19 the tax liability is nonrefundable. A deduction is not
8 20 allowed for the tax year for the amount of premium costs paid
8 21 which is used in the calculation of the credit taken under
8 22 this section.
8 23 For purposes of this section, "qualified long=term care
8 24 insurance contract" means the same as defined in section 7702B
8 25 of the Internal Revenue Code.
8 26 Sec. 12. NEW SECTION. 422.11L LOW=INCOME TAX CREDIT.
8 27 1. The taxes imposed under this division, less the credits
8 28 allowed under section 422.12, shall be reduced by a low=income
8 29 tax credit equal to the following:
8 30 a. For a taxpayer with net income of eight thousand
8 31 dollars or less, five percent of the net income.
8 32 b. For a taxpayer with net income of more than eight
8 33 thousand dollars but not more than sixteen thousand dollars,
8 34 four hundred dollars less one dollar for each twenty dollars
8 35 of net income in excess of eight thousand dollars.
9 1 c. For a taxpayer with net income of more than sixteen
9 2 thousand dollars, zero.
9 3 2. Any credit in excess of the tax liability shall be
9 4 refunded. In lieu of claiming a refund, a taxpayer may elect
9 5 to have the overpayment shown on the taxpayer's final,
9 6 completed return credited to the tax liability for the
9 7 following taxable year.
9 8 3. Married taxpayers electing to file separate returns or
9 9 to file separately on a combined return form must determine
9 10 the low=income tax credit under subsection 1 based upon their
9 11 combined net income and allocate the total credit amount to
9 12 each spouse in the proportion that each spouse's respective
9 13 net income bears to the total combined net income.
9 14 Nonresidents or part=year residents of Iowa must determine
9 15 their Iowa low=income tax credit in the ratio of their Iowa
9 16 source net income to their all source net income.
9 17 Nonresidents or part=year residents who are married and elect
9 18 to file separate returns or to file separately on a combined
9 19 return form must allocate the low=income tax credit between
9 20 the spouses in the ratio of each spouse's Iowa source net
9 21 income to the combined Iowa source net income of the
9 22 taxpayers.
9 23 Sec. 13. Section 422.12C, subsection 1, unnumbered
9 24 paragraph 1, Code 2005, is amended to read as follows:
9 25 The taxes imposed under this division, less the credits
9 26 allowed under sections 422.11A, 422.11B, 422.12, and 422.12B
9 27 shall be reduced by a child and dependent care credit equal to
9 28 the following percentages of the federal child and dependent
9 29 care credit provided in section 21 of the Internal Revenue
9 30 Code but not in excess of two hundred dollars:
9 31 Sec. 14. Section 422.13, subsection 1, paragraph c, Code
9 32 2005, is amended to read as follows:
9 33 c. However, if that part of the net income of a
9 34 nonresident which is allocated to Iowa pursuant to section
9 35 422.8, subsection 2, is less than one thousand dollars the
10 1 nonresident is not required to make and sign a return except
10 2 when the nonresident is subject to the state alternative
10 3 minimum tax imposed pursuant to section 422.5, subsection 1,
10 4 paragraph "k".
10 5 Sec. 15. Section 422.13, subsection 1A, Code 2005, is
10 6 amended to read as follows:
10 7 1A. Notwithstanding any other provision in this section, a
10 8 resident of this state is not required to make and file a
10 9 return if the person's net income is equal to or less than the
10 10 appropriate dollar amount listed in section 422.5, subsection
10 11 2, upon which tax is not imposed. A nonresident of this state
10 12 is not required to make and file a return if the person's
10 13 total net income in section 422.5, subsection 1, paragraph "j"
10 14 "b", is equal to or less than the appropriate dollar amount
10 15 provided in section 422.5, subsection 2, upon which tax is not
10 16 imposed. For purposes of this subsection, the amount of a
10 17 lump sum distribution subject to separate federal tax shall be
10 18 included in net income for purposes of determining if a
10 19 resident is required to file a return and the portion of the
10 20 lump sum distribution that is allocable to Iowa is included in
10 21 total net income for purposes of determining if a nonresident
10 22 is required to make and file a return.
10 23 Sec. 16. Section 422.21, unnumbered paragraph 5, Code
10 24 2005, is amended to read as follows:
10 25 The director shall determine for the 1989 2006 and each
10 26 subsequent calendar year the annual and cumulative inflation
10 27 factors for each calendar year to be applied to tax years
10 28 beginning on or after January 1 of that calendar year. The
10 29 director shall compute the new dollar amounts as specified to
10 30 be adjusted in section 422.5 by the latest cumulative
10 31 inflation factor and round off the result to the nearest one
10 32 dollar. The annual and cumulative inflation factors
10 33 determined by the director are not rules as defined in section
10 34 17A.2, subsection 11. The director shall determine for the
10 35 1990 calendar year and each subsequent calendar year the
11 1 annual and cumulative standard deduction factors to be applied
11 2 to tax years beginning on or after January 1 of that calendar
11 3 year. The director shall compute the new dollar amounts of
11 4 the standard deductions specified in section 422.9, subsection
11 5 1, by the latest cumulative standard deduction factor and
11 6 round off the result to the nearest ten dollars. The annual
11 7 and cumulative standard deduction factors determined by the
11 8 director are not rules as defined in section 17A.2, subsection
11 9 11.
11 10 Sec. 17. Section 422.11B, Code 2005, is repealed.
11 11 COORDINATING AMENDMENTS
11 12 Sec. 18. Section 12D.9, subsection 2, Code 2005, is
11 13 amended to read as follows:
11 14 2. State income tax treatment of the Iowa educational
11 15 savings plan trust shall be as provided in section 422.7,
11 16 subsections 32, 33, and 34 subsection 1, paragraph "e", and
11 17 subsection 2, paragraph "j", and section 422.35, subsection
11 18 14.
11 19 Sec. 19. Section 217.39, Code 2005, is amended to read as
11 20 follows:
11 21 217.39 PERSECUTED VICTIMS OF WORLD WAR II == REPARATIONS
11 22 == HEIRS.
11 23 Notwithstanding any other law of this state, payments paid
11 24 to and income from lost property of a victim of persecution
11 25 for racial, ethnic, or religious reasons by Nazi Germany or
11 26 any other Axis regime or as an heir of such victim which is
11 27 exempt from state income tax as provided in section 422.7,
11 28 subsection 35, shall not be considered as income or an asset
11 29 for determining the eligibility for state or local government
11 30 benefit or entitlement programs. The proceeds are not subject
11 31 to recoupment for the receipt of governmental benefits or
11 32 entitlements, and liens, except liens for child support, are
11 33 not enforceable against these sums for any reason.
11 34 Sec. 20. Section 257.21, unnumbered paragraph 2, Code
11 35 2005, is amended to read as follows:
12 1 The instructional support income surtax shall be imposed on
12 2 the state individual income tax for the calendar year during
12 3 which the school's budget year begins, or for a taxpayer's
12 4 fiscal year ending during the second half of that calendar
12 5 year and after the date the board adopts a resolution to
12 6 participate in the program or the first half of the succeeding
12 7 calendar year, and shall be imposed on all individuals
12 8 residing in the school district on the last day of the
12 9 applicable tax year. As used in this section, "state
12 10 individual income tax" means the taxes computed under section
12 11 422.5, less the credits allowed in sections 422.11A, 422.11B,
12 12 422.12, and 422.12B.
12 13 Sec. 21. Section 422.6, unnumbered paragraph 1, Code 2005,
12 14 is amended to read as follows:
12 15 The tax imposed by section 422.5 less the credits allowed
12 16 under sections 15.333, 15.335, 422.10, 422.11, and 422.11A,
12 17 and 422.11B, and the personal exemption credit allowed under
12 18 section 422.12 apply to and are a charge against estates and
12 19 trusts with respect to their taxable income, and the rates are
12 20 the same as those applicable to individuals. The fiduciary
12 21 shall make the return of income for the estate or trust for
12 22 which the fiduciary acts, whether the income is taxable to the
12 23 estate or trust or to the beneficiaries. However, for tax
12 24 years ending after August 5, 1997, if the trust is a qualified
12 25 preneed funeral trust as set forth in section 685 of the
12 26 Internal Revenue Code and the trustee has elected the special
12 27 tax treatment under section 685 of the Internal Revenue Code,
12 28 neither the trust nor the beneficiary is subject to Iowa
12 29 income tax on income accruing to the trust.
12 30 Sec. 22. Section 422D.2, Code 2005, is amended to read as
12 31 follows:
12 32 422D.2 LOCAL INCOME SURTAX.
12 33 A county may impose by ordinance a local income surtax as
12 34 provided in section 422D.1 at the rate set by the board of
12 35 supervisors, of up to one percent, on the state individual
13 1 income tax of each individual residing in the county at the
13 2 end of the individual's applicable tax year. However, the
13 3 cumulative total of the percents of income surtax imposed on
13 4 any taxpayer in the county shall not exceed twenty percent.
13 5 The reason for imposing the surtax and the amount needed shall
13 6 be set out in the ordinance. The surtax rate shall be set to
13 7 raise only the amount needed. For purposes of this section,
13 8 "state individual income tax" means the tax computed under
13 9 section 422.5, less the credits allowed in sections 422.11A,
13 10 422.11B, 422.12, and 422.12B.
13 11 Sec. 23. Section 450.4, subsection 8, Code 2005, is
13 12 amended to read as follows:
13 13 8. On the value of that portion of any lump sum or
13 14 installment payments which are received by a beneficiary under
13 15 an annuity which was purchased under an employee's pension or
13 16 retirement plan which was excluded from net income as set
13 17 forth in under section 422.7, subsection 31.
13 18 Sec. 24. Section 541A.2, subsection 7, unnumbered
13 19 paragraph 1, Code 2005, is amended to read as follows:
13 20 An individual development account closed in accordance with
13 21 this subsection is not subject to the limitations and benefits
13 22 provided by this chapter but is subject to state tax in
13 23 accordance with the provisions of section 422.7, subsection 28
13 24 2, paragraph "i", and section 450.4, subsection 6. An
13 25 individual development account may be closed for any of the
13 26 following reasons:
13 27 Sec. 25. Section 541A.3, subsection 2, Code 2005, is
13 28 amended to read as follows:
13 29 2. Income earned by an individual development account is
13 30 not subject to state tax, in accordance with the provisions of
13 31 section 422.7, subsection 28 2, paragraph "i".
13 32 EFFECTIVE AND APPLICABILITY DATE
13 33 Sec. 26. This division of this Act takes effect January 1,
13 34 2006, and applies to tax years beginning on or after that
13 35 date.
14 1 DIVISION II
14 2 SALES AND USE TAXES
14 3 Sec. 27. Section 15A.9, subsection 5, paragraph b, Code
14 4 2005, is amended by striking the paragraph.
14 5 Sec. 28. Section 423.3, subsections 3, 4, 5, 7 through 22,
14 6 24 through 30, 32, 33, 34, 40, 41, 42, 45 through 48, 52, 54,
14 7 55, 57, 61, 64 through 70, 72, and 79, Code 2005, are amended
14 8 by striking the subsections.
14 9 Sec. 29. Section 423.3, subsection 84, Code 2005, is
14 10 amended to read as follows:
14 11 84. a. Subject to paragraph "b", a partial exemption on
14 12 the sales price from the sale or furnishing of metered gas,
14 13 electricity, and fuel, including propane and heating oil, to
14 14 residential customers which is used to provide energy for
14 15 residential dwellings and units of apartment and condominium
14 16 complexes used for human occupancy.
14 17 b. The partial exemption in this subsection shall be
14 18 phased in by means of a reduction in the tax rate as follows:
14 19 (1) If the date of the utility billing or meter reading
14 20 cycle of the residential customer for the sale or furnishing
14 21 of metered gas and electricity is on or after January 1, 2004,
14 22 through December 31, 2004, or if the sale or furnishing of
14 23 fuel for purposes of residential energy and the delivery of
14 24 the fuel occurs on or after January 1, 2004, through December
14 25 31, 2004, the rate of tax is two percent of the sales price.
14 26 (2) If the date of the utility billing or meter reading
14 27 cycle of the residential customer for the sale or furnishing
14 28 of metered gas and electricity is on or after January 1, 2005,
14 29 through December 31, 2005, or if the sale or furnishing of
14 30 fuel for purposes of residential energy and the delivery of
14 31 the fuel occurs on or after January 1, 2005, through December
14 32 31, 2005, the rate of tax is one percent of the sales price.
14 33 (3) If the date of the utility billing or meter reading
14 34 cycle of the residential customer for the sale or furnishing
14 35 of metered gas and electricity is on or after January 1, 2006,
15 1 or if the sale, furnishing, or service of fuel for purposes of
15 2 residential energy and the delivery of the fuel occurs on or
15 3 after January 1, 2006, the rate of tax is zero percent of the
15 4 sales price.
15 5 c. The partial exemption in this subsection does not apply
15 6 to local option sales and services tax imposed pursuant to
15 7 chapters 423B and 423E.
15 8 Sec. 30. Section 423.6, subsections 7, 14, 16, and 17,
15 9 Code 2005, are amended by striking the subsections.
15 10 Sec. 31. Section 423.43, subsection 3, Code 2005, is
15 11 amended to read as follows:
15 12 3. a. The revenue arising on or after January 1, 2006,
15 13 from the sales or use tax imposed on utilities of residential
15 14 customers as provided in section 423.3, subsection 84, shall
15 15 be deposited into the alternative energy incentive fund
15 16 created in section 476.49.
15 17 b. All other revenue arising under the operation of this
15 18 chapter shall be credited to the general fund of the state.
15 19 Sec. 32. NEW SECTION. 476.49 ALTERNATIVE ENERGY
15 20 INCENTIVE FUND == INCENTIVE PROGRAM DEVELOPMENT.
15 21 1. An alternative energy incentive fund is established in
15 22 the state treasury to be administered by the Iowa energy
15 23 center created under section 266.39C. The fund is separate
15 24 from the general fund of the state. Moneys in the alternative
15 25 energy incentive fund are not subject to section 8.33 and
15 26 shall not revert to any other fund. Notwithstanding section
15 27 12C.7, subsection 2, interest or earnings on moneys deposited
15 28 in the fund shall be credited to the fund.
15 29 2. Moneys in the alternative energy incentive fund are
15 30 appropriated to the Iowa energy center to be used to finance
15 31 the provision of state incentives for the development and
15 32 encouragement of small independent energy providers. A
15 33 proposed alternative energy incentive program shall be
15 34 developed through the cooperation of the utility industry,
15 35 independent producers, and a legislative=appointed committee.
16 1 The proposed alternative energy incentive program shall be
16 2 presented to the general assembly no later than January 15,
16 3 2006. The general assembly shall implement an incentive
16 4 program by July 1, 2006.
16 5 Sec. 33. Section 476B.4, subsection 1, paragraph a, Code
16 6 2005, is amended to read as follows:
16 7 a. The wind energy production tax credit shall not be
16 8 allowed for any kilowatt=hour of electricity produced on wind
16 9 energy conversion property for which the owner has claimed or
16 10 otherwise received for that property the benefit of special
16 11 valuation under section 427B.26 or section 441.21, subsection
16 12 8, or the exemption from retail sales tax under section
16 13 422.45, subsection 48, Code Supplement 2003, or section 423.3,
16 14 subsection 54, as applicable.
16 15 Sec. 34. Section 15.334A, Code 2005, is repealed.
16 16 Sec. 35. EFFECTIVE DATE. This division of this Act takes
16 17 effect January 1, 2006.
16 18 DIVISION III
16 19 CORPORATE INCOME TAX REPEAL
16 20 Sec. 36. Sections 422.32 through 422.41, Code 2005, are
16 21 repealed.
16 22 COORDINATING AMENDMENTS
16 23 Sec. 37. Section 12D.9, subsection 2, Code 2005, is
16 24 amended to read as follows:
16 25 2. State income tax treatment of the Iowa educational
16 26 savings plan trust shall be as provided in section 422.7,
16 27 subsections 32, 33, and 34, and section 422.35, subsection 14.
16 28 Sec. 38. Section 15.333, subsections 1 and 3, Code 2005,
16 29 are amended to read as follows:
16 30 1. An eligible business may claim a corporate business tax
16 31 credit up to a maximum of ten percent of the new investment
16 32 which is directly related to new jobs created by the location
16 33 or expansion of an eligible business under the program. Any
16 34 credit in excess of the tax liability for the tax year may be
16 35 credited to the tax liability for the following seven years or
17 1 until depleted, whichever occurs earlier. Subject to prior
17 2 approval by the department of economic development in
17 3 consultation with the department of revenue, an eligible
17 4 business whose project primarily involves the production of
17 5 value=added agricultural products may elect to receive a
17 6 refund of all or a portion of an unused tax credit. For
17 7 purposes of this section, an eligible business includes a
17 8 cooperative described in section 521 of the Internal Revenue
17 9 Code which is not required to file an Iowa corporate income
17 10 tax return. The refund may be used against a tax liability
17 11 imposed under chapter 422, division II, III, or V. If the
17 12 business is a partnership, S corporation, limited liability
17 13 company, cooperative organized under chapter 501 and filing as
17 14 a partnership for federal tax purposes, or estate or trust
17 15 electing to have the income taxed directly to the individual,
17 16 an individual may claim the tax credit allowed. The amount
17 17 claimed by the individual shall be based upon the pro rata
17 18 share of the individual's earnings of the partnership, S
17 19 corporation, limited liability company, cooperative organized
17 20 under chapter 501 and filing as a partnership for federal tax
17 21 purposes, or estate or trust.
17 22 3. An eligible business whose project primarily involves
17 23 the production of value=added agricultural products, that
17 24 elects to receive a refund of all or a portion of an unused
17 25 tax credit, shall apply to the department of economic
17 26 development for tax credit certificates. An eligible business
17 27 whose project primarily involves the production of value=added
17 28 agricultural products shall not claim a tax credit under this
17 29 section unless a tax credit certificate issued by the
17 30 department of economic development is attached to the
17 31 taxpayer's tax return for the tax year for which the tax
17 32 credit is claimed. For purposes of this section, an eligible
17 33 business includes a cooperative described in section 521 of
17 34 the Internal Revenue Code which is not required to file an
17 35 Iowa corporate income tax return. For purposes of this
18 1 section, an eligible business also includes a cooperative
18 2 described in section 521 of the Internal Revenue Code which is
18 3 required to file an Iowa corporate income tax return. Such
18 4 cooperative may elect to transfer all or a portion of its tax
18 5 credit to its members. The amount of tax credit transferred
18 6 and claimed by a member shall be based upon the pro rata share
18 7 of the member's earnings of the cooperative.
18 8 A tax credit certificate shall not be valid until the tax
18 9 year following the date of the project completion. A tax
18 10 credit certificate shall contain the taxpayer's name, address,
18 11 tax identification number, the date of project completion, the
18 12 amount of the tax credit, and other information required by
18 13 the department of revenue. The department of economic
18 14 development shall not issue tax credit certificates under this
18 15 subsection and section 15.385, subsection 4, paragraph "c",
18 16 which total more than four million dollars during a fiscal
18 17 year. If the department receives and approves applications
18 18 for tax credit certificates under this subsection and section
18 19 15.385, subsection 4, paragraph "c", in excess of four million
18 20 dollars, the applicants shall receive certificates for a
18 21 prorated amount. The tax credit certificates shall not be
18 22 transferred except as provided in this subsection for a
18 23 cooperative described in section 521 of the Internal Revenue
18 24 Code which is required to file an Iowa corporate income tax
18 25 return. For a cooperative described in section 521 of the
18 26 Internal Revenue Code, the department of economic development
18 27 shall require that the cooperative submit a list of its
18 28 members and the share of each member's interest in the
18 29 cooperative. The department shall issue a tax credit
18 30 certificate to each member contained on the submitted list.
18 31 Sec. 39. Section 15.335, subsection 1, unnumbered
18 32 paragraph 1, Code 2005, is amended to read as follows:
18 33 An eligible business may claim a corporate business tax
18 34 credit for increasing research activities in this state during
18 35 the period the eligible business is participating in the
19 1 program.
19 2 Sec. 40. Section 15.335, subsection 2, Code 2005, is
19 3 amended to read as follows:
19 4 2. The credit allowed in this section is in addition to
19 5 the credit authorized in section 422.10 and section 422.33,
19 6 subsection 5. However, if the alternative credit computation
19 7 method is used in section 422.10 or section 422.33, subsection
19 8 5, the credit allowed in this section shall also be computed
19 9 using that method.
19 10 Sec. 41. Section 15.385, subsection 2, Code 2005, is
19 11 amended by striking the subsection.
19 12 Sec. 42. Section 15.385, subsection 4, paragraphs a and c,
19 13 Code 2005, are amended to read as follows:
19 14 a. An eligible business may claim a tax credit equal to a
19 15 percentage of the new investment directly related to new jobs
19 16 created by the location or expansion of an eligible business
19 17 under the program. The tax credit shall be allowed against
19 18 taxes imposed under chapter 422, division II, III, or V. If
19 19 the business is a partnership, S corporation, limited
19 20 liability company, cooperative organized under chapter 501 and
19 21 filing as a partnership for federal tax purposes, or estate or
19 22 trust electing to have the income taxed directly to the
19 23 individual, an individual may claim the tax credit allowed.
19 24 The amount claimed by the individual shall be based upon the
19 25 pro rata share of the individual's earnings of the
19 26 partnership, S corporation, limited liability company,
19 27 cooperative organized under chapter 501 and filing as a
19 28 partnership for federal tax purposes, or estate or trust. The
19 29 percentage shall be equal to the amount provided in paragraph
19 30 "d". Any tax credit in excess of the tax liability for the
19 31 tax year may be credited to the tax liability for the
19 32 following seven years or until depleted, whichever occurs
19 33 first.
19 34 Subject to prior approval by the department of economic
19 35 development, in consultation with the department of revenue,
20 1 an eligible business whose project primarily involves the
20 2 production of value=added agricultural products or uses
20 3 biotechnology=related processes may elect to receive a refund
20 4 of all or a portion of an unused tax credit. For purposes of
20 5 this subsection, such an eligible business includes a
20 6 cooperative described in section 521 of the Internal Revenue
20 7 Code which is not required to file an Iowa corporate income
20 8 tax return, and whose project primarily involves the
20 9 production of ethanol. The refund may be applied against a
20 10 tax liability imposed under chapter 422, division II, III, or
20 11 V. If the business is a partnership, S corporation, limited
20 12 liability company, cooperative organized under chapter 501 and
20 13 filing as a partnership for federal tax purposes, or estate or
20 14 trust electing to have the income taxed directly to the
20 15 individual, an individual may claim the tax credit allowed.
20 16 The amount claimed by the individual shall be based upon the
20 17 pro rata share of the individual's earnings of the
20 18 partnership, S corporation, limited liability company,
20 19 cooperative organized under chapter 501 and filing as a
20 20 partnership for federal tax purposes, or estate or trust.
20 21 c. (1) An eligible business whose project primarily
20 22 involves the production of value=added agricultural products
20 23 or uses biotechnology=related processes, which elects to
20 24 receive a refund of all or a portion of an unused tax credit,
20 25 shall apply to the department of economic development for tax
20 26 credit certificates. Such an eligible business shall not
20 27 claim a tax credit refund under this subsection unless a tax
20 28 credit certificate issued by the department of economic
20 29 development is attached to the taxpayer's tax return for the
20 30 tax year for which the tax credit refund is claimed. For
20 31 purposes of this subsection, an eligible business includes a
20 32 cooperative described in section 521 of the Internal Revenue
20 33 Code which is not required to file an Iowa corporate income
20 34 tax return, and whose project primarily involves the
20 35 production of ethanol. For purposes of this subsection, an
21 1 eligible business also includes a cooperative described in
21 2 section 521 of the Internal Revenue Code which is required to
21 3 file an Iowa corporate income tax return and whose project
21 4 primarily involves the production of ethanol. Such
21 5 cooperative may elect to transfer all or a portion of its tax
21 6 credit to its members. The amount of tax credit transferred
21 7 and claimed by a member shall be based upon the pro rata share
21 8 of the member's earnings of the cooperative.
21 9 (2) A tax credit certificate shall not be valid until the
21 10 tax year following the date of the capital investment project
21 11 completion. A tax credit certificate shall contain the
21 12 taxpayer's name, address, tax identification number, the date
21 13 of project completion, the amount of the tax credit, and other
21 14 information required by the department of revenue. The
21 15 department of economic development shall not issue tax credit
21 16 certificates under this subsection and section 15.333,
21 17 subsection 3, which total more than four million dollars
21 18 during a fiscal year. If the department receives and approves
21 19 applications for tax credit certificates under this subsection
21 20 and section 15.333, subsection 3, in excess of four million
21 21 dollars, the applicants shall receive certificates for a
21 22 prorated amount. The tax credit certificates shall not be
21 23 transferred except as provided in this subsection for a
21 24 cooperative described in section 521 of the Internal Revenue
21 25 Code which is required to file an Iowa corporate income tax
21 26 return and whose project primarily involves the production of
21 27 ethanol. For a cooperative described in section 521 of the
21 28 Internal Revenue Code, the department of economic development
21 29 shall require that the cooperative submit a list of its
21 30 members and the share of each member's interest in the
21 31 cooperative. The department shall issue a tax credit
21 32 certificate to each member contained on the submitted list.
21 33 Sec. 43. Section 15A.9, subsection 4, unnumbered paragraph
21 34 1, Code 2005, is amended to read as follows:
21 35 The primary business and a supporting business shall be
22 1 entitled to a corporate business tax credit equal to ten
22 2 percent of the new investment made within the zone by the
22 3 primary business or a supporting business prior to project
22 4 completion. A credit in excess of the tax liability for the
22 5 tax year may be credited to the tax liability for the
22 6 following twenty years or until depleted, whichever comes
22 7 first.
22 8 Sec. 44. Section 15A.9, subsection 8, unnumbered paragraph
22 9 1, Code 2005, is amended to read as follows:
22 10 A corporate business tax credit shall be available to the
22 11 primary business or a supporting business for increasing
22 12 research activities in this state within the zone.
22 13 Sec. 45. Section 15A.9, subsection 8, paragraph f, Code
22 14 2005, is amended to read as follows:
22 15 f. The credit authorized in this subsection is in lieu of
22 16 the credit authorized in section 422.10 and section 422.33,
22 17 subsection 5.
22 18 Sec. 46. Section 15E.43, subsection 1, paragraph a, Code
22 19 2005, is amended to read as follows:
22 20 a. For tax years beginning on or after January 1, 2002, a
22 21 tax credit shall be allowed against the taxes imposed in
22 22 chapter 422, divisions II, III, and V, and in chapter 432, and
22 23 against the moneys and credits tax imposed in section 533.24,
22 24 for a portion of a taxpayer's equity investment, as provided
22 25 in subsection 2, in a qualifying business or a community=
22 26 based seed capital fund. An individual may claim a tax credit
22 27 under this paragraph of a partnership, limited liability
22 28 company, S corporation, estate, or trust electing to have
22 29 income taxed directly to the individual. The amount claimed
22 30 by the individual shall be based upon the pro rata share of
22 31 the individual's earnings from the partnership, limited
22 32 liability company, S corporation, estate, or trust.
22 33 Sec. 47. Section 15E.44, subsection 4, Code 2005, is
22 34 amended to read as follows:
22 35 4. After verifying the eligibility of a qualifying
23 1 business, the board shall issue a tax credit certificate to be
23 2 attached to the equity investor's tax return. The tax credit
23 3 certificate shall contain the taxpayer's name, address, tax
23 4 identification number, the amount of credit, the name of the
23 5 qualifying business, and other information required by the
23 6 department of revenue. The tax credit certificate, unless
23 7 rescinded by the board, shall be accepted by the department of
23 8 revenue as payment for taxes imposed pursuant to chapter 422,
23 9 divisions II, III, and V, and in chapter 432, and for the
23 10 moneys and credits tax imposed in section 533.24, subject to
23 11 any conditions or restrictions placed by the board upon the
23 12 face of the tax credit certificate and subject to the
23 13 limitations of section 15E.43.
23 14 Sec. 48. Section 15E.45, subsection 4, Code 2005, is
23 15 amended to read as follows:
23 16 4. After verifying the eligibility of the community=based
23 17 seed capital fund, the board shall issue a tax credit
23 18 certificate to be attached to the taxpayer's tax return. The
23 19 tax credit certificate shall contain the taxpayer's name,
23 20 address, tax identification number, the amount of the tax
23 21 credit, the name of the community=based seed capital fund, and
23 22 other information required by the department of revenue. The
23 23 tax credit certificate, unless rescinded by the board, shall
23 24 be accepted by the department of revenue or a local taxing
23 25 district, as applicable, as payment for taxes imposed pursuant
23 26 to chapter 422, divisions II, III, and V, and chapter 432, and
23 27 as payment for the moneys and credits tax imposed pursuant to
23 28 section 533.24, subject to any conditions or restrictions
23 29 placed by the board on the face of the tax credit certificate
23 30 and subject to the limitations of section 15E.43.
23 31 Sec. 49. Section 15E.51, subsection 2, Code 2005, is
23 32 amended to read as follows:
23 33 2. A tax credit shall be allowed against the taxes imposed
23 34 in chapter 422, divisions II, III, and V, and in chapter 432,
23 35 and against the moneys and credits tax imposed in section
24 1 533.24, for a portion of a taxpayer's equity investment in a
24 2 venture capital fund. An individual may claim a tax credit
24 3 under this section of a partnership, limited liability
24 4 company, S corporation, estate, or trust electing to have
24 5 income taxed directly to the individual. The amount claimed
24 6 by the individual shall be based upon the pro rata share of
24 7 the individual's earnings from the partnership, limited
24 8 liability company, S corporation, estate, or trust.
24 9 Sec. 50. Section 15E.62, subsection 6, Code 2005, is
24 10 amended to read as follows:
24 11 6. "Tax credit" means a contingent tax credit issued
24 12 pursuant to section 15E.66 that is available against tax
24 13 liabilities imposed by chapter 422, divisions II, III, and V,
24 14 and by chapter 432 and against the moneys and credits tax
24 15 imposed by section 533.24.
24 16 Sec. 51. Section 15E.193B, subsection 6, paragraph a, Code
24 17 2005, is amended to read as follows:
24 18 a. An eligible housing business may claim a tax credit up
24 19 to a maximum of ten percent of the new investment which is
24 20 directly related to the building or rehabilitating of a
24 21 minimum of four single=family homes located in that part of a
24 22 city or county in which there is a designated enterprise zone
24 23 or one multiple dwelling unit building containing three or
24 24 more individual dwelling units located in that part of a city
24 25 or county in which there is a designated enterprise zone. The
24 26 new investment that may be used to compute the tax credit
24 27 shall not exceed the new investment used for the first one
24 28 hundred forty thousand dollars of value for each single=family
24 29 home or for each unit of a multiple dwelling unit building
24 30 containing three or more units. The tax credit may be used to
24 31 reduce the tax liability imposed under chapter 422, division
24 32 II, III, or V, or chapter 432. Any credit in excess of the
24 33 tax liability for the tax year may be credited to the tax
24 34 liability for the following seven years or until depleted,
24 35 whichever occurs earlier. If the business is a partnership, S
25 1 corporation, limited liability company, or estate or trust
25 2 electing to have the income taxed directly to the individual,
25 3 an individual may claim the tax credit allowed. The amount
25 4 claimed by the individual shall be based upon the pro rata
25 5 share of the individual's earnings of the partnership, S
25 6 corporation, limited liability company, or estate or trust.
25 7 Sec. 52. Section 15E.193B, subsection 8, unnumbered
25 8 paragraph 2, Code 2005, is amended to read as follows:
25 9 The transferee may use the amount of the tax credit
25 10 transferred against the taxes imposed under chapter 422,
25 11 divisions II, III, and V, and chapter 432 for any tax year the
25 12 original transferor could have claimed the tax credit. Any
25 13 consideration received for the transfer of the tax credit
25 14 shall not be included as income under chapter 422, divisions
25 15 II, III, and V. Any consideration paid for the transfer of
25 16 the tax credit shall not be deducted from income under chapter
25 17 422, divisions II, III, and V.
25 18 Sec. 53. Section 15E.305, subsection 1, Code 2005, is
25 19 amended to read as follows:
25 20 1. For tax years beginning on or after January 1, 2003, a
25 21 tax credit shall be allowed against the taxes imposed in
25 22 chapter 422, divisions II, III, and V, and in chapter 432, and
25 23 against the moneys and credits tax imposed in section 533.24
25 24 equal to twenty percent of a taxpayer's endowment gift to a
25 25 qualified community foundation. An individual may claim a tax
25 26 credit under this section of a partnership, limited liability
25 27 company, S corporation, estate, or trust electing to have
25 28 income taxed directly to the individual. The amount claimed
25 29 by the individual shall be based upon the pro rata share of
25 30 the individual's earnings from the partnership, limited
25 31 liability company, S corporation, estate, or trust. A tax
25 32 credit shall be allowed only for an endowment gift made to a
25 33 qualified community foundation for a permanent endowment fund
25 34 established to benefit a charitable cause in this state. Any
25 35 tax credit in excess of the taxpayer's tax liability for the
26 1 tax year may be credited to the tax liability for the
26 2 following five years or until depleted, whichever occurs
26 3 first. A tax credit shall not be carried back to a tax year
26 4 prior to the tax year in which the taxpayer claims the tax
26 5 credit.
26 6 Sec. 54. Section 28A.24, Code 2005, is amended to read as
26 7 follows:
26 8 28A.24 EXEMPTION FROM TAXATION.
26 9 Since an authority is performing essential governmental
26 10 functions, an authority is not required to pay any taxes or
26 11 assessments of any kind or nature upon any property required
26 12 or used by it for its purposes, or any rates, fees, rentals,
26 13 receipts, or incomes at any time received by it, and the bonds
26 14 issued by an authority, their transfer, and the income,
26 15 including any profits made on the sale of the bonds, is
26 16 deductible in determining net income for the purposes of the
26 17 state individual and corporate income tax under divisions II
26 18 and III of chapter 422, and shall not be taxed by any
26 19 political subdivision of this state.
26 20 Sec. 55. Section 175.17, subsection 10, Code 2005, is
26 21 amended to read as follows:
26 22 10. Bonds and notes issued by the authority for purposes
26 23 of financing the beginning farmer loan program provided in
26 24 section 175.12 are exempt from taxation by the state, and
26 25 interest earned on the bonds and notes is deductible in
26 26 determining net income for purposes of the state individual
26 27 and corporate income tax under divisions II and III of chapter
26 28 422.
26 29 Sec. 56. Section 404A.1, subsection 1, Code 2005, is
26 30 amended to read as follows:
26 31 1. A property rehabilitation tax credit, subject to the
26 32 availability of the credit, is granted against the tax imposed
26 33 under chapter 422, division II, III, or V, or chapter 432, for
26 34 the rehabilitation of eligible property located in this state
26 35 as provided in this chapter. Tax credits in excess of tax
27 1 liabilities shall be refunded as provided in section 404A.4,
27 2 subsection 3.
27 3 Sec. 57. Section 404A.2, unnumbered paragraph 3, Code
27 4 2005, is amended to read as follows:
27 5 For purposes of the individual and corporate income taxes
27 6 tax and the franchise tax, the increase in the basis of the
27 7 rehabilitated property that would otherwise result from the
27 8 qualified rehabilitation costs shall be reduced by the amount
27 9 of the credit computed under this chapter.
27 10 Sec. 58. Section 404A.4, subsection 5, unnumbered
27 11 paragraph 2, Code 2005, is amended to read as follows:
27 12 The transferee may use the amount of the tax credit
27 13 transferred against the taxes imposed under chapter 422,
27 14 divisions II, III, and V, and chapter 432 for any tax year the
27 15 original transferor could have claimed the tax credit. Any
27 16 consideration received for the transfer of the tax credit
27 17 shall not be included as income under chapter 422, divisions
27 18 II, III, and V. Any consideration paid for the transfer of
27 19 the tax credit shall not be deducted from income under chapter
27 20 422, divisions II, III, and V.
27 21 Sec. 59. Section 422.8, subsection 2, paragraph b,
27 22 subparagraph (1), Code 2005, is amended to read as follows:
27 23 (1) The net income or loss of the corporation which is
27 24 fairly and equitably attributable to this state under section
27 25 422.33, subsections 2 and 3, Code 2005.
27 26 Sec. 60. Section 422.11E, subsection 2, Code 2005, is
27 27 amended to read as follows:
27 28 2. To receive the assistive device tax credit, the
27 29 eligible small business must submit an application to the
27 30 department of economic development. If the taxpayer meets the
27 31 criteria for eligibility, the department of economic
27 32 development shall issue to the taxpayer a certification of
27 33 entitlement for the assistive device tax credit. However, the
27 34 combined amount of tax credits that may be approved for a
27 35 fiscal year under this section and section 422.33, subsection
28 1 9, shall not exceed five hundred thousand dollars. Tax credit
28 2 certificates shall be issued on an earliest filed basis. The
28 3 certification shall contain the taxpayer's name, address, tax
28 4 identification number, the amount of the credit, and tax year
28 5 for which the certificate applies. The taxpayer must file the
28 6 tax credit certificate with the taxpayer's individual income
28 7 tax return in order to claim the tax credit. The departments
28 8 of economic development and revenue shall each adopt rules to
28 9 jointly administer this section and shall provide by rule for
28 10 the method to be used to determine for which fiscal year the
28 11 tax credits are approved.
28 12 Sec. 61. Section 422.13, subsection 5, Code 2005, is
28 13 amended to read as follows:
28 14 5. Notwithstanding subsections 1 through 4 and sections
28 15 section 422.15 and 422.36, a partnership, a limited liability
28 16 company whose members are taxed on the company's income under
28 17 provisions of the Internal Revenue Code, trust, or corporation
28 18 whose stockholders are taxed on the corporation's income under
28 19 the provisions of the Internal Revenue Code may, not later
28 20 than the due date for filing its federal return for the
28 21 taxable year, including any extension thereof, elect to file a
28 22 composite return for the nonresident partners, members,
28 23 beneficiaries, or shareholders. The director may require that
28 24 a composite return be filed under the conditions deemed
28 25 appropriate by the director. A partnership, limited liability
28 26 company, trust, or corporation filing a composite return is
28 27 liable for tax required to be shown due on the return. All
28 28 powers of the director and requirements of the director apply
28 29 to returns filed under this subsection including, but not
28 30 limited to, the provisions of this division and division VI of
28 31 this chapter.
28 32 Sec. 62. Section 422.16, subsection 10, paragraph c, Code
28 33 2005, is amended to read as follows:
28 34 c. If any withholding agent, being a domestic or foreign
28 35 corporation, required under the provisions of this section to
29 1 withhold on wages or other taxable Iowa income subject to this
29 2 chapter, fails to withhold the amounts required to be
29 3 withheld, make the required returns or remit to the department
29 4 the amounts withheld, the director may, having exhausted all
29 5 other means of enforcement of the provisions of this chapter,
29 6 certify such fact or facts to the secretary of state, who
29 7 shall thereupon cancel the articles of incorporation or
29 8 certificate of authority (as the case may be) of such
29 9 corporation, and the rights of such corporation to carry on
29 10 business in the state of Iowa shall thereupon cease. The
29 11 secretary of state shall immediately notify by registered mail
29 12 such domestic or foreign corporation of the action taken by
29 13 the secretary of state. The provisions of section 422.40,
29 14 subsection 3, shall be applicable.
29 15 Sec. 63. Section 422.21, unnumbered paragraph 1, Code
29 16 2005, is amended to read as follows:
29 17 Returns shall be in the form the director prescribes, and
29 18 shall be filed with the department on or before the last day
29 19 of the fourth month after the expiration of the tax year.
29 20 However, co=operative associations as defined in section
29 21 6072(d) of the Internal Revenue Code shall file their returns
29 22 on or before the fifteenth day of the ninth month following
29 23 the close of the taxable year and nonprofit corporations
29 24 subject to the unrelated business income tax imposed by
29 25 section 422.33, subsection 1A, shall file their returns on or
29 26 before the fifteenth day of the fifth month following the
29 27 close of the taxable year. If, under the Internal Revenue
29 28 Code, a corporation is required to file a return covering a
29 29 tax period of less than twelve months, the state return shall
29 30 be for the same period and is due forty=five days after the
29 31 due date of the federal tax return, excluding any extension of
29 32 time to file. In case of sickness, absence, or other
29 33 disability, or if good cause exists, the director may allow
29 34 further time for filing returns. The director shall cause to
29 35 be prepared blank forms for the returns and shall cause them
30 1 to be distributed throughout the state and to be furnished
30 2 upon application, but failure to receive or secure the form
30 3 does not relieve the taxpayer from the obligation of making a
30 4 return that is required. The department may as far as
30 5 consistent with the Code draft income tax forms to conform to
30 6 the income tax forms of the internal revenue department of the
30 7 United States government. Each return by a taxpayer upon whom
30 8 a tax is imposed by section 422.5 shall show the county of the
30 9 residence of the taxpayer.
30 10 Sec. 64. Section 422.24A, subsection 2, paragraph b, Code
30 11 2005, is amended by striking the paragraph and inserting in
30 12 lieu thereof the following:
30 13 b. The business has its principal place from which it
30 14 directs or manages the trade of the business in the state.
30 15 Sec. 65. Section 422.31, Code 2005, is amended by striking
30 16 the section and inserting in lieu thereof the following:
30 17 422.31 DISTORTION OR SHIFTING OF INCOME.
30 18 Where the director has reason to believe that any person or
30 19 corporation so conducts a trade or business as either directly
30 20 or indirectly to distort the person's or corporation's true
30 21 net income and the net income properly attributable to the
30 22 state, whether by the arbitrary shifting of income, through
30 23 price fixing, charges for services, or otherwise, whereby the
30 24 net income is arbitrarily assigned to one or another unit in a
30 25 group of taxpayers carrying on business under a substantially
30 26 common control, the director may require such facts as are
30 27 necessary for the proper computation of the entire net income
30 28 and the net income properly attributable to the state, and
30 29 shall determine the same, and in the determination thereof the
30 30 director shall have regard to the fair profits which would
30 31 normally arise from the conduct of the trade or business.
30 32 Sec. 66. Section 422.60, subsection 2, paragraph e, Code
30 33 2005, is amended to read as follows:
30 34 e. In the case of a net operating loss beginning after
30 35 December 31, 1986 which is carried back or carried forward to
31 1 the current taxable year, the net operating loss shall be
31 2 reduced by the amount of items of tax preference and
31 3 adjustments arising in the tax year which was taken into
31 4 account in computing the net operating loss in section 422.35,
31 5 subsection 11, Code 2005. The deduction for a net operating
31 6 loss for a tax year beginning after December 31, 1986 which is
31 7 carried back or carried forward to the current taxable year
31 8 shall not exceed ninety percent of the alternative minimum
31 9 taxable income determined without regard for the net operating
31 10 loss deduction.
31 11 Sec. 67. Section 422.61, subsection 3, unnumbered
31 12 paragraph 1, Code 2005, is amended to read as follows:
31 13 "Net income" means the net income of the financial
31 14 institution computed in accordance with section 422.35, Code
31 15 2005, with the following adjustments:
31 16 Sec. 68. Section 422.73, subsection 1, unnumbered
31 17 paragraph 1, Code 2005, is amended to read as follows:
31 18 If it appears that an amount of tax, penalty, or interest
31 19 has been paid which was not due under division II, III or V of
31 20 this chapter, then that amount shall be credited against any
31 21 tax due on the books of the department by the person who made
31 22 the excessive payment, or that amount shall be refunded to the
31 23 person or with the person's approval, credited to tax to
31 24 become due. A claim for refund or credit that has not been
31 25 filed with the department within three years after the return
31 26 upon which a refund or credit claimed became due, or within
31 27 one year after the payment of the tax upon which a refund or
31 28 credit is claimed was made, whichever time is the later, shall
31 29 not be allowed by the director. If, as a result of a
31 30 carryback of a net operating loss or a net capital loss, the
31 31 amount of tax in a prior period is reduced and an overpayment
31 32 results, the claim for refund or credit of the overpayment
31 33 shall be filed with the department within the three years
31 34 after the return for the taxable year of the net operating
31 35 loss or net capital loss became due. Notwithstanding the
32 1 period of limitation specified, the taxpayer shall have six
32 2 months from the day of final disposition of any income tax
32 3 matter between the taxpayer and the internal revenue service
32 4 with respect to the particular tax year to claim an income tax
32 5 refund or credit.
32 6 Sec. 69. Section 422.85, Code 2005, is amended to read as
32 7 follows:
32 8 422.85 IMPOSITION OF ESTIMATED TAX.
32 9 A taxpayer subject to the tax imposed by sections 422.33
32 10 and section 422.60 shall make payments of estimated tax for
32 11 the taxable year if the amount of tax payable, less credits,
32 12 can reasonably be expected to be more than one thousand
32 13 dollars for the taxable year. For purposes of this division,
32 14 "estimated tax" means the amount which the taxpayer estimates
32 15 to be the tax due and payable under division III or V of this
32 16 chapter for the taxable year.
32 17 Sec. 70. Section 422.110, Code 2005, is amended to read as
32 18 follows:
32 19 422.110 INCOME TAX CREDIT IN LIEU OF REFUND.
32 20 In lieu of the fuel tax refund provided in section 452A.17,
32 21 a person or corporation subject to taxation under division II
32 22 or III of this chapter may elect to receive an income tax
32 23 credit. The person or corporation which elects to receive an
32 24 income tax credit shall cancel its refund permit obtained
32 25 under section 452A.18 within thirty days after the first day
32 26 of its tax year or the permit becomes invalid at that time.
32 27 For the purposes of this section, "person" includes a person
32 28 claiming a tax credit based upon the person's pro rata share
32 29 of the earnings from a partnership, limited liability company,
32 30 or corporation which is not subject to a tax under division II
32 31 or III of this chapter as a partnership, limited liability
32 32 company, or corporation. If the election to receive an income
32 33 tax credit has been made, it remains effective for at least
32 34 one tax year, and for subsequent tax years unless a change is
32 35 requested and a new refund permit applied for within thirty
33 1 days after the first day of the person's or corporation's tax
33 2 year. The income tax credit shall be the amount of the Iowa
33 3 fuel tax paid on fuel purchased by the person or corporation
33 4 and is subject to the conditions provided in section 452A.17
33 5 with the exception that the income tax credit is not available
33 6 for refunds relating to casualty losses, transport diversions,
33 7 pumping credits, blending errors, idle time, power takeoffs,
33 8 reefer units, and exports by distributors.
33 9 The right to a credit under this section is not assignable
33 10 and the credit may be claimed only by the person or
33 11 corporation that purchased the fuel.
33 12 Sec. 71. Section 422.111, unnumbered paragraph 1, Code
33 13 2005, is amended to read as follows:
33 14 The fuel tax credit may be applied against the income tax
33 15 liability of the person or corporation as determined on the
33 16 tax return filed for the year in which the fuel tax was paid.
33 17 The department shall provide forms for claiming the fuel tax
33 18 credit. If the fuel tax credit would result in an overpayment
33 19 of income tax, the person or corporation may apply for a
33 20 refund of the amount of overpayment or may have the
33 21 overpayment credited to income tax due in subsequent years.
33 22 Each person or corporation that claims a fuel tax credit shall
33 23 maintain the original invoices showing the purchase of the
33 24 fuel on which a credit is claimed. An invoice is not
33 25 acceptable in support of a claim for credit unless the invoice
33 26 is a separate serially numbered invoice covering no more than
33 27 one purchase of motor fuel or undyed special fuel, prepared by
33 28 the seller on a form approved by the department, or unless the
33 29 invoice is legibly written with no corrections or erasures and
33 30 shows the date of sale, the name and address of the seller and
33 31 of the purchaser, the kind of fuel, the gallonage in figures,
33 32 the per gallon price of the fuel, the total purchase price
33 33 including the Iowa fuel tax, and that the total purchase price
33 34 has been paid. However, as to refund invoices made on a
33 35 billing machine, the department may waive these requirements.
34 1 If an original invoice is lost or destroyed, the department
34 2 may approve a credit supported by a copy identified and
34 3 certified by the seller as being a true copy of the original.
34 4 Each person or corporation that claims a fuel tax credit shall
34 5 maintain complete records of purchases of motor fuel or undyed
34 6 special fuel on which Iowa fuel tax was paid, and for which a
34 7 fuel tax credit is claimed.
34 8 Sec. 72. Section 422.120, subsection 1, paragraph b,
34 9 subparagraph (1), Code 2005, is amended to read as follows:
34 10 (1) The credit shall be available to an individual or
34 11 corporate taxpayer corporation if the taxpayer's federal
34 12 taxable income is not more than ninety=nine thousand six
34 13 hundred dollars for the tax year. In the case of married
34 14 taxpayers, their combined federal taxable income shall be used
34 15 to determine if they qualify for the credit.
34 16 Sec. 73. Section 428A.8, unnumbered paragraph 3, Code
34 17 2005, is amended to read as follows:
34 18 Any tax or additional tax found to be due shall be
34 19 collected by the county recorder. If the county recorder is
34 20 unable to collect the tax, the director of revenue shall
34 21 collect the tax in the same manner as taxes are collected in
34 22 chapter 422, division III II. If collected by the director of
34 23 revenue, the director shall pay the county its proportionate
34 24 share of the tax. Section 422.25, subsections 1, 2, 3, and 4,
34 25 and sections 422.26, 422.28 through 422.30, and 422.73,
34 26 consistent with this chapter, apply with respect to the
34 27 collection of any tax or additional tax found to be due, in
34 28 the same manner and with the same effect as if the deed,
34 29 instrument, or writing were an income tax return within the
34 30 meaning of those statutes.
34 31 Sec. 74. Section 441.21, subsection 11, Code 2005, is
34 32 amended to read as follows:
34 33 11. Beginning with valuations established on or after
34 34 January 1, 1995, as used in this section, "residential
34 35 property" includes all land and buildings of multiple housing
35 1 cooperatives organized under chapter 499A and includes land
35 2 and buildings used primarily for human habitation which land
35 3 and buildings are owned and operated by organizations that
35 4 have received tax=exempt status under section 501(c)(3) of the
35 5 Internal Revenue Code and rental income from the property is
35 6 not taxed as unrelated business income under section 422.33,
35 7 subsection 1A 511 of the Internal Revenue Code.
35 8 Sec. 75. Section 476B.2, Code 2005, is amended to read as
35 9 follows:
35 10 476B.2 GENERAL RULE.
35 11 The owner of a qualified facility shall, for each kilowatt=
35 12 hour of qualified electricity that the owner sells during the
35 13 ten=year period beginning on the date the qualified facility
35 14 was originally placed in service, be allowed a wind energy
35 15 production tax credit to the extent provided in this chapter
35 16 against the tax imposed in chapter 422, divisions II, III, and
35 17 V, and chapter 432.
35 18 Sec. 76. Section 476B.7, unnumbered paragraph 2, Code
35 19 2005, is amended to read as follows:
35 20 The tax credit shall only be transferred once. The
35 21 transferee may use the amount of the tax credit transferred
35 22 against the taxes imposed under chapter 422, divisions II,
35 23 III, and V, and chapter 432 for any tax year the original
35 24 transferor could have claimed the tax credit. Any
35 25 consideration received for the transfer of the tax credit
35 26 shall not be included as income under chapter 422, divisions
35 27 II, III, and V. Any consideration paid for the transfer of
35 28 the tax credit shall not be deducted from income under chapter
35 29 422, divisions II, III, and V.
35 30 EFFECTIVE AND APPLICABILITY DATE
35 31 Sec. 77. This division of this Act takes effect January 1,
35 32 2006, and applies to tax years beginning on or after that
35 33 date.
35 34 DIVISION IV
35 35 BUSINESS MOTOR TRUCKS
36 1 Sec. 78. Section 321.1, Code 2005, is amended by adding
36 2 the following new subsection:
36 3 NEW SUBSECTION. 95. "Work truck" means a motor truck,
36 4 other than a special truck, with an unladen weight of seven
36 5 thousand pounds or less and which is one of the following:
36 6 a. Owned by a person engaged in farming if the motor truck
36 7 is used primarily for purposes of the owner's farming
36 8 operations or to assist with another person's farming
36 9 operations.
36 10 b. Owned by a person who is engaged in a business or trade
36 11 that requires the use of a motor truck if the truck is used
36 12 primarily for purposes of the owner's business or trade.
36 13 Sec. 79. Section 321.109, subsection 1, unnumbered
36 14 paragraph 1, Code 2005, is amended to read as follows:
36 15 The annual fee for all motor vehicles including vehicles
36 16 designated by manufacturers as station wagons, and 1993 and
36 17 subsequent model years for multipurpose vehicles, and 2006 and
36 18 subsequent model year motor trucks with an unladen weight of
36 19 seven thousand pounds or less, except motor trucks registered
36 20 under section 321.120, 321.121, or 321.122, motor homes,
36 21 ambulances, hearses, motorcycles, motor bicycles, and 1992 and
36 22 older model years for multipurpose vehicles, shall be equal to
36 23 one percent of the value as fixed by the department plus forty
36 24 cents for each one hundred pounds or fraction thereof of
36 25 weight of vehicle, as fixed by the department. The weight of
36 26 a motor vehicle, fixed by the department for registration
36 27 purposes, shall include the weight of a battery, heater,
36 28 bumpers, spare tire, and wheel. Provided, however, that for
36 29 any new vehicle purchased in this state by a nonresident for
36 30 removal to the nonresident's state of residence the purchaser
36 31 may make application to the county treasurer in the county of
36 32 purchase for a transit plate for which a fee of ten dollars
36 33 shall be paid. And provided, however, that for any used
36 34 vehicle held by a registered dealer and not currently
36 35 registered in this state, or for any vehicle held by an
37 1 individual and currently registered in this state, when
37 2 purchased in this state by a nonresident for removal to the
37 3 nonresident's state of residence, the purchaser may make
37 4 application to the county treasurer in the county of purchase
37 5 for a transit plate for which a fee of three dollars shall be
37 6 paid. The county treasurer shall issue a nontransferable
37 7 certificate of registration for which no refund shall be
37 8 allowed; and the transit plates shall be void thirty days
37 9 after issuance. Such purchaser may apply for a certificate of
37 10 title by surrendering the manufacturer's or importer's
37 11 certificate or certificate of title, duly assigned as provided
37 12 in this chapter. In this event, the treasurer in the county
37 13 of purchase shall, when satisfied with the genuineness and
37 14 regularity of the application, and upon payment of a fee of
37 15 ten dollars, issue a certificate of title in the name and
37 16 address of the nonresident purchaser delivering the same to
37 17 the person entitled to the title as provided in this chapter.
37 18 The application requirements of section 321.20 apply to a
37 19 title issued as provided in this subsection, except that a
37 20 natural person who applies for a certificate of title shall
37 21 provide either the person's social security number, passport
37 22 number, or driver's license number, whether the license was
37 23 issued by this state, another state, or another country. The
37 24 provisions of this subsection relating to multipurpose
37 25 vehicles are effective January 1, 1993, for all 1993 and
37 26 subsequent model years. The annual registration fee for
37 27 multipurpose vehicles that are 1992 model years and older
37 28 shall be in accordance with section 321.124.
37 29 Sec. 80. NEW SECTION. 321.120 FARM PICKUP TRUCKS.
37 30 1. The annual registration fee for a work truck shall be
37 31 computed pursuant to section 321.122, subsection 1, paragraph
37 32 "a" or "b".
37 33 2. Upon application for a new registration or a renewal,
37 34 an owner who registers a vehicle as a work truck may be
37 35 required to show a copy of schedule C, E, F, or SE or any
38 1 other documentation filed by the owner in the previous year
38 2 for federal income tax purposes or other proof that the owner
38 3 is engaged in farming or a business or trade that requires the
38 4 use of a motor truck pursuant to rules adopted by the
38 5 department. If the department determines by audit or other
38 6 means that a person who has registered a vehicle as a work
38 7 truck does not qualify for the registration, the person may be
38 8 required to pay regular registration fees pursuant to section
38 9 321.109 in addition to any other penalty or sanction imposed
38 10 by law.
38 11 Sec. 81. Section 321.122, subsection 1, unnumbered
38 12 paragraph 1, Code 2005, is amended to read as follows:
38 13 The annual registration fee for truck tractors, road
38 14 tractors, and motor trucks, except 2006 model year or newer
38 15 motor trucks other than work trucks with an unladen weight of
38 16 seven thousand pounds or less and motor trucks registered as
38 17 special trucks, shall be based on the combined gross weight of
38 18 the vehicle or combination of vehicles. All trucks, truck
38 19 tractors, or road tractors registered under this section shall
38 20 be registered for a gross weight equal to or in excess of the
38 21 unladen weight of the vehicle or combination of vehicles. The
38 22 annual registration fee fees for such vehicles or combination
38 23 of vehicles, except special trucks, shall be are as follows:
38 24 Sec. 82. Section 321.152, subsection 1, Code 2005, is
38 25 amended to read as follows:
38 26 1. Four Ten percent of the total collection for each
38 27 annual or semiannual vehicle registration and each duplicate
38 28 registration card or plate issued.
38 29 DIVISION V
38 30 LOCAL BUDGETS AND PROPERTY TAXES
38 31 Sec. 83. Section 23A.2, subsection 10, paragraph h, Code
38 32 2005, is amended to read as follows:
38 33 h. The performance of an activity listed in section
38 34 331.424, Code or Code Supplement 2005, as a service for which
38 35 a supplemental levy county may be certified include in its
39 1 budget.
39 2 Sec. 84. Section 25B.2, subsection 3, Code 2005, is
39 3 amended by striking the subsection.
39 4 Sec. 85. NEW SECTION. 25B.3A UNFUNDED STATE MANDATES ==
39 5 EFFECT.
39 6 If, on or after July 1, 2006, a state mandate is enacted by
39 7 the general assembly, or otherwise imposed, on a political
39 8 subdivision and the state mandate requires a political
39 9 subdivision to engage in any new activity, to provide a new
39 10 service, or to provide any service beyond that required by any
39 11 law enacted prior to July 1, 2006, and the state does not
39 12 appropriate moneys to fully fund the cost of the state mandate
39 13 as those costs are identified pursuant to section 25B.5, the
39 14 political subdivision is not required to perform the activity
39 15 or provide the new or increased service and the political
39 16 subdivision shall not be subject to any liabilities imposed by
39 17 the state or the imposition of any fines or penalties for the
39 18 failure to comply with the state mandate.
39 19 Sec. 86. Section 28M.5, subsection 1, unnumbered
39 20 paragraphs 1 and 2, Code 2005, are amended to read as follows:
39 21 The commission, with the approval of the board of
39 22 supervisors of participating counties and the city council of
39 23 participating cities, may levy annually a tax not to exceed
39 24 ninety=five cents per thousand dollars of the assessed value
39 25 of all taxable property in a regional transit district.
39 26 However, for a city participating in a regional transit
39 27 district, the total of all the tax levies imposed in the city
39 28 pursuant to section 384.12, subsection 10, and this section
39 29 shall not exceed the aggregate of ninety=five cents per
39 30 thousand dollars of the assessed value of all taxable property
39 31 in the participating city.
39 32 The amount of the regional transit district levy that is
39 33 the responsibility of a participating county shall be deducted
39 34 from the maximum rates of taxes authorized to be levied by the
39 35 county pursuant to section 331.423, subsections 1 and 2, as
40 1 applicable for general and rural county services. However,
40 2 for a regional transit district that includes a county with a
40 3 population of less than three hundred thousand, the amount of
40 4 the regional transit district levy that is the responsibility
40 5 of a participating county shall be deducted from the maximum
40 6 rate of taxes authorized to be levied by the county pursuant
40 7 to section 331.423, subsection 1 for general county services.
40 8 Sec. 87. Section 37.8, Code 2005, is amended to read as
40 9 follows:
40 10 37.8 LEVY FOR MAINTENANCE.
40 11 For the development, operation, and maintenance of a
40 12 building or monument constructed, purchased, or donated under
40 13 this chapter, a city may levy a tax not to exceed eighty=one
40 14 cents per thousand dollars of assessed value on all the
40 15 taxable property within the city, as provided in section
40 16 384.12, subsection 2 subject to the limitation in section
40 17 384.1.
40 18 Sec. 88. Section 123.38, unnumbered paragraph 2, Code
40 19 2005, is amended to read as follows:
40 20 Any licensee or permittee, or the licensee's or permittee's
40 21 executor or administrator, or any person duly appointed by the
40 22 court to take charge of and administer the property or assets
40 23 of the licensee or permittee for the benefit of the licensee's
40 24 or permittee's creditors, may voluntarily surrender a license
40 25 or permit to the division. When a license or permit is
40 26 surrendered the division shall notify the local authority, and
40 27 the division or the local authority shall refund to the person
40 28 surrendering the license or permit, a proportionate amount of
40 29 the fee received by the division or the local authority for
40 30 the license or permit as follows: if a license or permit is
40 31 surrendered during the first three months of the period for
40 32 which it was issued, the refund shall be three=fourths of the
40 33 amount of the fee; if surrendered more than three months but
40 34 not more than six months after issuance, the refund shall be
40 35 one=half of the amount of the fee; if surrendered more than
41 1 six months but not more than nine months after issuance, the
41 2 refund shall be one=fourth of the amount of the fee. No
41 3 refund shall be made, however, for any special liquor permit,
41 4 nor for a liquor control license, wine permit, or beer permit
41 5 surrendered more than nine months after issuance. For
41 6 purposes of this paragraph, any portion of license or permit
41 7 fees used for the purposes authorized in section 331.424,
41 8 subsection 1, paragraphs "a" and "b", Code or Code Supplement
41 9 2005, and in section 331.424A, shall not be deemed received
41 10 either by the division or by a local authority. No refund
41 11 shall be made to any licensee or permittee, upon the surrender
41 12 of the license or permit, if there is at the time of
41 13 surrender, a complaint filed with the division or local
41 14 authority, charging the licensee or permittee with a violation
41 15 of this chapter. If upon a hearing on a complaint the license
41 16 or permit is not revoked or suspended, then the licensee or
41 17 permittee is eligible, upon surrender of the license or
41 18 permit, to receive a refund as provided in this section; but
41 19 if the license or permit is revoked or suspended upon hearing
41 20 the licensee or permittee is not eligible for the refund of
41 21 any portion of the license or permit fee.
41 22 Sec. 89. Section 218.99, Code 2005, is amended to read as
41 23 follows:
41 24 218.99 COUNTIES TO BE NOTIFIED OF PATIENTS' PERSONAL
41 25 ACCOUNTS.
41 26 The administrator in control of a state institution shall
41 27 direct the business manager of each institution under the
41 28 administrator's jurisdiction which is mentioned in section
41 29 331.424, subsection 1, paragraphs "a" and "b", Code or Code
41 30 Supplement 2005, and for which services are paid under section
41 31 331.424A, to quarterly inform the county of legal settlement's
41 32 entity designated to perform the county's central point of
41 33 coordination process of any patient or resident who has an
41 34 amount in excess of two hundred dollars on account in the
41 35 patients' personal deposit fund and the amount on deposit.
42 1 The administrators shall direct the business manager to
42 2 further notify the entity designated to perform the county's
42 3 central point of coordination process at least fifteen days
42 4 before the release of funds in excess of two hundred dollars
42 5 or upon the death of the patient or resident. If the patient
42 6 or resident has no county of legal settlement, notice shall be
42 7 made to the director of human services and the administrator
42 8 in control of the institution involved.
42 9 Sec. 90. Section 257.1, subsection 2, unnumbered paragraph
42 10 2, Code 2005, is amended to read as follows:
42 11 For the budget year commencing July 1, 1999 2007, and for
42 12 each succeeding budget year the regular program foundation
42 13 base per pupil is eighty=seven and five=tenths ninety=five
42 14 percent of the regular program state cost per pupil. For the
42 15 budget year commencing July 1, 1991, and for each succeeding
42 16 budget year the special education support services foundation
42 17 base is seventy=nine percent of the special education support
42 18 services state cost per pupil. The combined foundation base
42 19 is the sum of the regular program foundation base and the
42 20 special education support services foundation base.
42 21 Sec. 91. NEW SECTION. 257A.1 PROPERTY TAX LIMITATION.
42 22 1. For property taxes due and payable in the fiscal year
42 23 beginning July 1, 2007, and all subsequent fiscal years,
42 24 property taxes levied by a school district shall not exceed
42 25 the following percentages of the actual value of the property
42 26 as determined by the assessor after application of the
42 27 appropriate reduction in section 441.21:
42 28 a. For residential property, one=half of one percent.
42 29 b. For income residential property, one=half of one
42 30 percent.
42 31 c. For commercial property, one percent.
42 32 d. For industrial property, one percent.
42 33 e. For agricultural property, one=half of one percent.
42 34 2. In any fiscal year, the ratio of the percentage amount
42 35 actually levied to the maximum percentage levy allowed shall
43 1 be the same for each type of property in subsection 1.
43 2 3. This section applies to all school district property
43 3 tax levies, other than those authorized in sections 257.3 and
43 4 257.4.
43 5 4. a. For the fiscal year beginning July 1, 2007, the
43 6 percentage tax rate levied against each type of property
43 7 described in subsection 1 shall not exceed the sum of one=
43 8 fourth of one percent plus the corresponding percentage tax
43 9 rate imposed against that type of property in the fiscal year
43 10 beginning July 1, 2006. For the fiscal years beginning July
43 11 1, 2008, and July 1, 2009, the percentage tax rate levied
43 12 against each type of property described in subsection 1 shall
43 13 not exceed the sum of one=fourth of one percent plus the
43 14 percentage tax rate imposed for the previous fiscal year.
43 15 Implementation of this subsection shall not cause the
43 16 percentage tax rate levied against any type of property
43 17 described in subsection 1 to exceed the limitations in that
43 18 subsection.
43 19 b. If, for the fiscal year beginning July 1, 2006, the
43 20 corresponding percentage tax rate imposed against each type of
43 21 property described in subsection 1 exceeds the percentage rate
43 22 limitations in subsection 1, a school district shall reduce
43 23 its levy over a three=year period in order to meet the
43 24 percentage rate limitation requirements of subsection 1.
43 25 Sec. 92. NEW SECTION. 257A.2 PROPERTY TAX LIMITATION ==
43 26 CONSUMER PRICE INDEX.
43 27 1. Notwithstanding the limitation in section 257A.1,
43 28 beginning with the fiscal year beginning July 1, 2010, the
43 29 amount of property taxes to be levied by a school district
43 30 against any class of property for the budget year cannot
43 31 exceed the amount computed in this section. This section
43 32 applies to all school district property tax levies, other than
43 33 those authorized in sections 257.3 and 257.4.
43 34 2. The school district property tax limitation shall be
43 35 computed as follows:
44 1 a. Determine the amount of property taxes levied as a
44 2 percent of taxable value in the current fiscal year.
44 3 b. Determine the sum of the amount of taxable value of
44 4 property for the current fiscal year, and the amount of
44 5 increase in taxable value of property due to new construction,
44 6 additions or improvements to existing structures, expiration
44 7 of tax abatement under chapter 404, and any increase in
44 8 valuation because of reclassification of property.
44 9 c. Multiply the percent calculated in paragraph "a" times
44 10 the amount in paragraph "b".
44 11 d. Multiply the product determined in paragraph "c" times
44 12 the sum of one plus the consumer price index.
44 13 3. For purposes of this section, "consumer price index"
44 14 means the percentage rate of change in the consumer price
44 15 index as tabulated by the United States department of labor,
44 16 bureau of labor statistics, for the twelve=month period ending
44 17 June 30 of the previous fiscal year.
44 18 Sec. 93. Section 331.263, subsection 2, Code 2005, is
44 19 amended to read as follows:
44 20 2. The governing body of the community commonwealth shall
44 21 have the authority to levy county taxes and shall have the
44 22 authority to levy city taxes to the extent the city tax levy
44 23 authority is transferred by the charter to the community
44 24 commonwealth. A city participating in the community
44 25 commonwealth shall transfer a portion of the city's tax levy
44 26 authorized under section 384.1 or 384.12, whichever is
44 27 applicable, to the governing body of the community
44 28 commonwealth. The maximum rates of taxes authorized to be
44 29 levied under sections section 384.1 and 384.12 by a city
44 30 participating in the community commonwealth shall be reduced
44 31 by an amount equal to the rates of the same or similar taxes
44 32 levied in the city by the governing body of the community
44 33 commonwealth.
44 34 Sec. 94. Section 331.421, Code 2005, is amended by adding
44 35 the following new subsections:
45 1 NEW SUBSECTION. 1A. "Budget year" is the fiscal year
45 2 beginning during the calendar year in which a budget is first
45 3 certified.
45 4 NEW SUBSECTION. 2A. "Current fiscal year" is the fiscal
45 5 year ending during the calendar year in which a budget is
45 6 first certified.
45 7 Sec. 95. Section 331.421, subsection 10, Code 2005, is
45 8 amended by striking the subsection.
45 9 Sec. 96. Section 331.422, unnumbered paragraph 1, Code
45 10 2005, is amended to read as follows:
45 11 Subject to this section and sections 331.423 through
45 12 331.426 331.424C or as otherwise provided by state law, the
45 13 board of each county shall certify property taxes annually at
45 14 its March session to be levied for county purposes as follows:
45 15 Sec. 97. Section 331.423, Code 2005, is amended by
45 16 striking the section and inserting in lieu thereof the
45 17 following:
45 18 331.423 PROPERTY TAX LEVY LIMITATION.
45 19 1. Annually, the board may certify a levy subject to the
45 20 limits in this section and section 444.29. For property taxes
45 21 due and payable in the fiscal year beginning July 1, 2007, and
45 22 all subsequent fiscal years, property taxes levied by a county
45 23 shall not exceed the following percentages of the actual value
45 24 of the property as determined by the assessor after the
45 25 appropriate reduction in section 441.21 is applied:
45 26 a. For residential property in the incorporated areas of
45 27 the county, three=eighths of one percent.
45 28 b. For residential property in the unincorporated areas of
45 29 the county, three=fourths of one percent.
45 30 c. For commercial property in the incorporated areas of
45 31 the county, three=fourths of one percent.
45 32 d. For commercial property in the unincorporated areas of
45 33 the county, two percent.
45 34 e. For industrial property in the incorporated areas of
45 35 the county, one percent.
46 1 f. For industrial property in the unincorporated areas of
46 2 the county, three percent.
46 3 g. For agricultural property in the incorporated areas of
46 4 the county, one=half of one percent.
46 5 h. For agricultural property in the unincorporated areas
46 6 of the county, three=fourths of one percent.
46 7 i. For income residential property in the incorporated
46 8 areas of the county, three=fourths of one percent.
46 9 j. For income residential property in the unincorporated
46 10 areas of the county, three=fourths of one percent.
46 11 2. Notwithstanding subsection 1, paragraph "c", property
46 12 taxes levied by a county against commercial property in the
46 13 incorporated areas of the county shall not exceed the
46 14 following percentages of the actual value of the property as
46 15 determined by the assessor after the appropriate reduction in
46 16 section 441.21 is applied:
46 17 a. For property taxes due and payable in the fiscal year
46 18 beginning July 1, 2007, one percent.
46 19 b. For property taxes due and payable in the fiscal year
46 20 beginning July 1, 2008, seven=eighths of one percent.
46 21 3. a. In any fiscal year, the ratio of the percentage
46 22 amount actually levied and the maximum percentage levy allowed
46 23 shall be the same for each type of property in subsection 1,
46 24 paragraphs "a", "c", "e", "g", and "i", and subsection 2, when
46 25 applicable.
46 26 b. In any fiscal year, the ratio of the percentage amount
46 27 actually levied and the maximum percentage levy allowed shall
46 28 be the same for each type of property in subsection 1,
46 29 paragraphs "b", "d", "f", "h", and "j".
46 30 4. The limitations in subsections 1 and 2 do not apply to
46 31 amounts levied for debt service pursuant to section 331.430.
46 32 5. a. For the fiscal year beginning July 1, 2007, the
46 33 percentage tax rate levied against each type of property
46 34 described in subsections 1 and 2 shall not exceed the sum of
46 35 one=fourth of one percent plus the corresponding percentage
47 1 tax rate imposed against that type of property in the fiscal
47 2 year beginning July 1, 2006. For the fiscal years beginning
47 3 July 1, 2008, and July 1, 2009, the percentage tax rate levied
47 4 against each type of property described in subsections 1 and 2
47 5 shall not exceed the sum of one=fourth of one percent plus the
47 6 percentage tax rate imposed for the previous fiscal year.
47 7 Implementation of this subsection shall not cause the
47 8 percentage tax rate levied against any type of property
47 9 described in subsections 1 and 2 to exceed the limitations in
47 10 those subsections.
47 11 b. If, for the fiscal year beginning July 1, 2006, the
47 12 corresponding percentage tax rate imposed against each type of
47 13 property described in subsections 1 and 2 exceeds the
47 14 percentage rate limitations in those subsections, a county
47 15 shall reduce its levy over a three=year period in order to
47 16 meet the percentage rate limitation requirements of
47 17 subsections 1 and 2.
47 18 Sec. 98. NEW SECTION. 331.423A ENDING FUND BALANCE.
47 19 1. Effective for a fiscal year beginning on or after July
47 20 1, 2010, budgeted ending fund balances for a budget year in
47 21 excess of twenty=five percent of budgeted expenditures in
47 22 either the general fund or rural services fund for that budget
47 23 year shall be explicitly reserved or designated for a specific
47 24 purpose and specifically described in the certified budget.
47 25 The certified budget for the budget year shall include a
47 26 description of any changes from the current fiscal year to the
47 27 explicitly reserved or designated purpose for the excess
47 28 ending fund balance as specifically described in the certified
47 29 budget. For purposes of this section, ending fund balances
47 30 shall be determined either on a cash basis or an accrual
47 31 basis, whichever is consistent with the method used for the
47 32 county's budget. The description shall include the projected
47 33 date that the expenditures will be appropriated for the
47 34 specific purpose. Budgeted ending fund balances reserved or
47 35 designated shall only be used for the purpose specifically
48 1 described in the certified budget. The certified budget shall
48 2 not be amended for the purpose of changing the specific
48 3 purpose after the budget year begins.
48 4 2. In a protest to the county budget under section
48 5 331.436, the county shall have the burden of proving that the
48 6 budgeted ending fund balances in excess of twenty=five percent
48 7 are reasonably likely to be appropriated for the explicitly
48 8 reserved or designated specific purpose by the date identified
48 9 in the certified budget.
48 10 3. The budgeted ending fund balance in excess of twenty=
48 11 five percent of expenditures for the general fund or rural
48 12 services fund shall be considered an increase in an item in
48 13 the budget for purposes of section 24.28. The state appeal
48 14 board may certify a decision in accordance with section 24.32
48 15 that requires a reduction in the budgeted ending fund balance
48 16 for a particular fund.
48 17 4. For purposes of this section, the general fund includes
48 18 the general basic fund and the general supplemental fund and
48 19 the rural services fund includes the rural services basic fund
48 20 and the rural services supplemental fund.
48 21 Sec. 99. Section 331.424A, subsection 4, Code 2005, is
48 22 amended to read as follows:
48 23 4. For the fiscal year beginning July 1, 1996, and for
48 24 each subsequent fiscal year, the county shall certify a levy
48 25 for payment of services. For each fiscal year, county
48 26 revenues from taxes imposed by the county credited to the
48 27 services fund shall not exceed an amount equal to the amount
48 28 of base year expenditures for services as defined in section
48 29 331.438, less the amount of property tax relief to be received
48 30 pursuant to section 426B.2, in the fiscal year for which the
48 31 budget is certified. The county auditor and the board of
48 32 supervisors shall reduce the amount of the levy certified for
48 33 the services fund by the amount of property tax relief to be
48 34 received. A levy certified under this section is not subject
48 35 to the any appeal provisions of section 331.426 or to any
49 1 other provision in law authorizing a county to exceed,
49 2 increase, or appeal a property tax levy limit.
49 3 Sec. 100. Section 331.427, subsection 3, paragraph l, Code
49 4 2005, is amended to read as follows:
49 5 l. Services listed in section 331.424, subsection 1, Code
49 6 or Code Supplement 2005, and section 331.554.
49 7 Sec. 101. Section 331.428, subsection 2, paragraph d, Code
49 8 2005, is amended to read as follows:
49 9 d. Services listed under section 331.424, subsection 2,
49 10 Code or Code Supplement 2005.
49 11 Sec. 102. Section 331.429, subsection 1, paragraphs a and
49 12 b, Code 2005, are amended to read as follows:
49 13 a. Transfers from the general fund not to exceed in any
49 14 year the dollar equivalent of a tax of sixteen and seven=
49 15 eighths cents per thousand dollars of assessed value on all
49 16 taxable property in the county multiplied by the ratio of
49 17 current taxes actually collected and apportioned for the
49 18 general basic levy to the total general basic levy for the
49 19 current year in section 331.423, subsection 3, paragraph "a",
49 20 and an amount equivalent to the moneys derived by the general
49 21 fund from military service tax credits under chapter 426A,
49 22 manufactured or mobile home taxes under section 435.22, and
49 23 delinquent taxes for prior years collected and apportioned to
49 24 the general basic fund in the current year, multiplied by the
49 25 ratio of sixteen and seven=eighths cents to three dollars and
49 26 fifty cents.
49 27 b. Transfers from the rural services fund not to exceed in
49 28 any year the dollar equivalent of a tax of three dollars and
49 29 three=eighths cents per thousand dollars of assessed value on
49 30 all taxable property not located within the corporate limits
49 31 of a city in the county multiplied by the ratio of current
49 32 taxes actually collected and apportioned for the rural
49 33 services basic levy to the total rural services basic levy for
49 34 the current year in section 331.423, subsection 3, paragraph
49 35 "b", and an amount equivalent to the moneys derived by the
50 1 rural services fund from military service tax credits under
50 2 chapter 426A, manufactured or mobile home taxes under section
50 3 435.22, and delinquent taxes for prior years collected and
50 4 apportioned to the rural services basic fund in the current
50 5 year, multiplied by the ratio of three dollars and three=
50 6 eighths cents to three dollars and ninety=five cents.
50 7 Sec. 103. Section 331.434, unnumbered paragraph 1, Code
50 8 2005, is amended to read as follows:
50 9 Annually, the board of each county, subject to sections
50 10 331.423 through 331.426 331.424C and other applicable state
50 11 law, shall prepare and adopt a budget, certify taxes, and
50 12 provide appropriations as follows:
50 13 Sec. 104. Section 331.435, unnumbered paragraph 1, Code
50 14 2005, is amended to read as follows:
50 15 The board may amend the adopted county budget, subject to
50 16 sections 331.423 through 331.426 331.424C and other applicable
50 17 state law, to permit increases in any class of proposed
50 18 expenditures contained in the budget summary published under
50 19 section 331.434, subsection 3.
50 20 Sec. 105. Section 331.436, Code 2005, is amended by adding
50 21 the following new unnumbered paragraph:
50 22 NEW UNNUMBERED PARAGRAPH. For purposes of a protest to the
50 23 adopted budget, "item" means a budgeted expenditure,
50 24 appropriation, or cash reserve from a fund for a service area,
50 25 program, program element, or purpose.
50 26 Sec. 106. Section 335.30A, unnumbered paragraph 2, Code
50 27 2005, is amended to read as follows:
50 28 "Land=leased community" means any site, lot, field, or
50 29 tract of land under common ownership upon which ten or more
50 30 occupied manufactured homes are harbored, either free of
50 31 charge or for revenue purposes, and shall include any
50 32 building, structure, or enclosure used or intended for use as
50 33 part of the equipment of the land=leased community. The term
50 34 "land=leased community" shall not be construed to include
50 35 homes, buildings, or other structures temporarily maintained
51 1 by any individual, educational institution, or company on
51 2 their own premises and used exclusively to house their own
51 3 labor or students. A manufactured home located in a land=
51 4 leased community shall be taxed under section 435.22 as if the
51 5 manufactured home were located in a mobile home park.
51 6 Sec. 107. Section 373.10, Code 2005, is amended to read as
51 7 follows:
51 8 373.10 TAXING AUTHORITY.
51 9 The metropolitan council shall have the authority to levy
51 10 city taxes to the extent the city tax levy authority is
51 11 transferred by the charter to the metropolitan council. A
51 12 member city shall transfer a portion of the city's tax levy
51 13 authorized under section 384.1 or 384.12, whichever is
51 14 applicable, to the metropolitan council. The maximum rates of
51 15 taxes authorized to be levied under sections section 384.1 and
51 16 384.12 by a member city shall be reduced by an amount equal to
51 17 the rates of the same or similar taxes levied in the city by
51 18 the metropolitan council.
51 19 Sec. 108. Section 384.1, Code 2005, is amended by striking
51 20 the section and inserting in lieu thereof the following:
51 21 384.1 PROPERTY TAX LEVY LIMITATION.
51 22 1. Annually, a city may certify a levy subject to the
51 23 limits in this section and section 444.29. For property taxes
51 24 due and payable in the fiscal year beginning July 1, 2007, and
51 25 all subsequent fiscal years, property taxes levied by a city
51 26 shall not exceed the following percentages of the actual value
51 27 of the property as determined by the assessor after the
51 28 appropriate reduction in section 441.21 is applied:
51 29 a. For residential property, one percent.
51 30 b. For commercial property, one and one=half percent.
51 31 c. For industrial property, two percent.
51 32 d. For agricultural property, one percent.
51 33 e. For income residential property, one and one=half
51 34 percent.
51 35 2. Notwithstanding subsection 1, paragraph "b", property
52 1 taxes levied by a city against commercial property shall not
52 2 exceed the following percentages of the actual value of the
52 3 property as determined by the assessor after the appropriate
52 4 reduction in section 441.21 is applied:
52 5 a. For property taxes due and payable in the fiscal year
52 6 beginning July 1, 2007, two percent.
52 7 b. For property taxes due and payable in the fiscal year
52 8 beginning July 1, 2008, one and three=fourths percent.
52 9 3. In any fiscal year, the ratio of the percentage amount
52 10 actually levied to the maximum percentage levy allowed shall
52 11 be the same for each type of property in subsections 1 and 2.
52 12 4. The limitations in subsections 1 and 2 do not apply to
52 13 amounts levied for debt service pursuant to section 384.4.
52 14 5. a. For the fiscal year beginning July 1, 2007, the
52 15 percentage tax rate levied against each type of property
52 16 described in subsections 1 and 2 shall not exceed the sum of
52 17 one=fourth of one percent plus the corresponding percentage
52 18 tax rate imposed against that type of property in the fiscal
52 19 year beginning July 1, 2006. For the fiscal years beginning
52 20 July 1, 2008, and July 1, 2009, the percentage tax rate levied
52 21 against each type of property described in subsections 1 and 2
52 22 shall not exceed the sum of one=fourth of one percent plus the
52 23 percentage tax rate imposed for the previous fiscal year.
52 24 Implementation of this subsection shall not cause the
52 25 percentage tax rate levied against any type of property
52 26 described in subsections 1 and 2 to exceed the limitations in
52 27 those subsections.
52 28 b. If, for the fiscal year beginning July 1, 2006, the
52 29 corresponding percentage tax rate imposed against each type of
52 30 property described in subsections 1 and 2 exceeds the
52 31 percentage rate limitations in those subsections, a city shall
52 32 reduce its levy over a three=year period in order to meet the
52 33 percentage rate limitation requirements of subsections 1 and
52 34 2.
52 35 Sec. 109. Section 384.6, subsection 1, Code 2005, is
53 1 amended to read as follows:
53 2 1. Accounting for pension and related employee benefit
53 3 funds as provided by the city finance committee. A city may
53 4 make contributions to a retirement system other than the Iowa
53 5 public employees' retirement system for its city manager, or
53 6 city administrator performing the duties of city manager, in
53 7 an annual amount not to exceed the amount that would have been
53 8 contributed by the employer under section 97B.11. If a police
53 9 chief or fire chief has submitted a written request to the
53 10 board of trustees to be exempt from chapter 411, authorized in
53 11 section 411.3, subsection 1, a city shall make contributions
53 12 for the chief, in an amount not to exceed the amount that
53 13 would have been contributed by the city under section 411.8,
53 14 subsection 1, paragraph "a", to the international city
53 15 management association/retirement corporation. A city may
53 16 certify taxes to be levied for a trust and agency fund in the
53 17 amount necessary to meet its obligations, subject to the
53 18 limitation in section 384.1.
53 19 Sec. 110. Section 384.7, Code 2005, is amended to read as
53 20 follows:
53 21 384.7 CAPITAL IMPROVEMENTS FUND.
53 22 A city may establish a capital improvements reserve fund,
53 23 and may certify taxes not to exceed sixty=seven and one=half
53 24 cents per thousand dollars of taxable value each year to be
53 25 levied for the fund, subject to the limitation in section
53 26 384.1, for the purpose of accumulating moneys for the
53 27 financing of specified capital improvements, or carrying out a
53 28 specific capital improvement plan.
53 29 The question of the establishment of a capital improvements
53 30 reserve fund, the time period during which a levy will be made
53 31 for the fund, and the tax rate to be levied for the fund is
53 32 subject to approval by the voters, and may be submitted at any
53 33 city election upon the council's motion, or shall be submitted
53 34 at the next regular city election upon receipt of a valid
53 35 petition as provided in section 362.4.
54 1 If a continuing capital improvements levy is established by
54 2 election, it may be terminated in the same manner, upon the
54 3 council's motion or upon petition. Balances in a capital
54 4 improvements reserve fund are not unencumbered or
54 5 unappropriated funds for the purpose of reducing tax levies.
54 6 Transfers may be made between the capital improvements reserve
54 7 fund, construction funds, and the general fund, as provided in
54 8 rules promulgated by the city finance committee created in
54 9 section 384.13.
54 10 Sec. 111. Section 384.8, Code 2005, is amended to read as
54 11 follows:
54 12 384.8 EMERGENCY FUND.
54 13 A city may establish an emergency fund and may certify
54 14 taxes not to exceed twenty=seven cents per thousand dollars of
54 15 taxable value each year to be levied for the fund, subject to
54 16 the limitation in section 384.1. Transfers may be made from
54 17 the emergency fund to the general fund as provided in rules
54 18 promulgated by the city finance committee created in section
54 19 384.13.
54 20 Sec. 112. Section 384.110, Code 2005, is amended to read
54 21 as follows:
54 22 384.110 INSURANCE, SELF=INSURANCE, AND RISK POOLING FUNDS.
54 23 A city may credit funds to a fund or funds for the purposes
54 24 authorized by section 364.4, subsection 5; section 384.12,
54 25 subsection 18; or section 384.24, subsection 3, paragraph "s";
54 26 or to pay the premium costs on tort liability insurance,
54 27 property insurance, and any other insurance that may be
54 28 necessary in the operation of the city, the costs of a self=
54 29 insurance program, the costs of a local government risk pool
54 30 and amounts payable under any insurance agreements to provide
54 31 or procure such insurance, self=insurance program, or local
54 32 government risk pool. Moneys credited to the fund or funds,
54 33 and interest earned on such moneys, shall remain in the fund
54 34 or funds until expended for purposes authorized by section
54 35 364.4, subsection 5; section 384.12, subsection 18; or section
55 1 384.24, subsection 3, paragraph "s"; or for purposes specified
55 2 in this section.
55 3 Sec. 113. Section 403.19, unnumbered paragraph 1, Code
55 4 2005, is amended to read as follows:
55 5 A If approved by the electorate as required in section
55 6 403.19A, a municipality may provide by ordinance that taxes
55 7 levied on taxable property in an urban renewal area each year
55 8 by or for the benefit of the state, city, county, school
55 9 district, or other taxing district, shall be divided as
55 10 follows:
55 11 Sec. 114. Section 403.19, subsection 2, Code 2005, is
55 12 amended to read as follows:
55 13 2. That portion of the taxes each year in excess of such
55 14 amount shall be allocated to and when collected be paid into a
55 15 special fund of the municipality to pay the principal of and
55 16 interest on loans, moneys advanced to, or indebtedness,
55 17 whether funded, refunded, assumed, or otherwise, including
55 18 bonds issued under the authority of section 403.9, subsection
55 19 1, incurred by the municipality to finance or refinance, in
55 20 whole or in part, an urban renewal project within the area,
55 21 and to provide assistance for low and moderate income family
55 22 housing as provided in section 403.22, except as otherwise
55 23 provided in subsection 7, and except that taxes for the
55 24 regular and voter=approved physical plant and equipment levy
55 25 of a school district imposed pursuant to section 298.2 and
55 26 taxes for the payment of bonds and interest of each taxing
55 27 district must be collected against all taxable property within
55 28 the taxing district without limitation by the provisions of
55 29 this subsection. However, all or a portion of the taxes for
55 30 the physical plant and equipment levy shall be paid by the
55 31 school district to the municipality if the auditor certifies
55 32 to the school district by July 1 the amount of such levy that
55 33 is necessary to pay the principal and interest on bonds issued
55 34 by the municipality to finance an urban renewal project, which
55 35 bonds were issued before July 1, 2001. Indebtedness incurred
56 1 to refund bonds issued prior to July 1, 2001, shall not be
56 2 included in the certification. Such school district shall pay
56 3 over the amount certified by November 1 and May 1 of the
56 4 fiscal year following certification to the school district.
56 5 Unless and until the total assessed valuation of the taxable
56 6 property in an urban renewal area exceeds the total assessed
56 7 value of the taxable property in such area as shown by the
56 8 last equalized assessment roll referred to in subsection 1,
56 9 all of the taxes levied and collected upon the taxable
56 10 property in the urban renewal area shall be paid into the
56 11 funds for the respective taxing districts as taxes by or for
56 12 the taxing districts in the same manner as all other property
56 13 taxes. When such loans, advances, indebtedness, and bonds, if
56 14 any, and interest thereon, have been paid, all moneys
56 15 thereafter received from taxes upon the taxable property in
56 16 such urban renewal area shall be paid into the funds for the
56 17 respective taxing districts in the same manner as taxes on all
56 18 other property.
56 19 Sec. 115. Section 403.19, subsection 7, Code 2005, is
56 20 amended by striking the subsection and inserting in lieu
56 21 thereof the following:
56 22 7. a. Notwithstanding subsection 2, school district
56 23 revenue from property tax levies shall be paid to the school
56 24 district if the school district property levied against is
56 25 located in an urban renewal area in which ten percent or more
56 26 of the property in the urban renewal area is assessed for
56 27 property tax purposes as residential property, except
56 28 residential property that is housing for low or moderate
56 29 income families as that term is defined in section 403.17.
56 30 However, all or a portion of school district property tax
56 31 revenue shall be paid by the school district to the
56 32 municipality if the auditor certifies to the school district
56 33 by July 1 the amount of such revenue that is necessary to pay
56 34 the principal and interest on bonds issued by the municipality
56 35 to finance an urban renewal project, which bonds were issued
57 1 before July 1, 2006. Indebtedness incurred to refund bonds
57 2 issued prior to July 1, 2006, shall not be included in the
57 3 certification. Such school district shall pay over the amount
57 4 certified by November 1 and May 1 of the fiscal year following
57 5 certification to the school district.
57 6 b. For any fiscal year, a municipality may certify to the
57 7 county auditor the school district property tax revenue
57 8 necessary for payment of principal and interest on bonds
57 9 issued prior to July 1, 2006. The municipality may receive
57 10 school district property tax revenue only if the municipality
57 11 certified for such revenue for the fiscal year beginning July
57 12 1, 2006. A municipality shall not certify more than the
57 13 amount the municipality certified for the fiscal year
57 14 beginning July 1, 2006. If for any fiscal year a municipality
57 15 fails to certify to the county auditor for a school district
57 16 by July 1 the amount of school district property tax revenue
57 17 necessary for payment of principal and interest on such bonds,
57 18 as provided in subsection 2, the school district is not
57 19 required to pay over the revenue to the municipality.
57 20 If in any fiscal year a school district and a municipality
57 21 are unable to agree on the amount of school district property
57 22 tax revenue for which a municipality may certify, either party
57 23 may request that the state appeal board review and finally
57 24 pass upon the amount that may be certified. Such appeals must
57 25 be presented in writing to the state appeal board no later
57 26 than July 31 following certification. The burden shall be on
57 27 the municipality to prove that the school district property
57 28 tax revenue is necessary to pay principal and interest on
57 29 bonds issued prior to July 1, 2006. A final decision must be
57 30 issued by the state appeal board no later than the following
57 31 October 1.
57 32 Sec. 116. NEW SECTION. 403.19A APPROVAL OF USE OF TAX
57 33 INCREMENT FINANCING == VOTE.
57 34 1. Before a municipality may adopt an ordinance for the
57 35 collection of taxes under section 403.19, the proposition to
58 1 collect such taxes shall be submitted at the general election
58 2 in the case of a county and at the regular city election in
58 3 the case of a city.
58 4 2. Notice of the election shall be given by publication as
58 5 required by section 49.53.
58 6 3. The proposition of collecting incremental taxes for
58 7 urban renewal purposes is not adopted unless the proposition
58 8 receives a favorable majority of the votes cast on the
58 9 proposition.
58 10 4. If the proposition of collecting incremental taxes for
58 11 urban renewal purposes is approved by the voters, the city may
58 12 proceed with the collection of incremental taxes under section
58 13 403.19 for a period not to exceed ten years.
58 14 5. For those municipalities that adopted an ordinance
58 15 under section 403.19 for the collection of incremental taxes
58 16 for urban renewal purposes prior to the effective date of this
58 17 Act, the ordinance shall remain in effect for ten years or
58 18 until the statutory time limit on the urban renewal area
58 19 expires, whichever is earlier. To continue collecting
58 20 incremental taxes, such municipalities shall proceed under
58 21 this section.
58 22 Sec. 117. Section 414.28A, unnumbered paragraph 2, Code
58 23 2005, is amended to read as follows:
58 24 "Land=leased community" means any site, lot, field, or
58 25 tract of land under common ownership upon which ten or more
58 26 occupied manufactured homes are harbored, either free of
58 27 charge or for revenue purposes, and shall include any
58 28 building, structure, or enclosure used or intended for use as
58 29 part of the equipment of the land=leased community. The term
58 30 "land=leased community" shall not be construed to include
58 31 homes, buildings, or other structures temporarily maintained
58 32 by any individual, educational institution, or company on
58 33 their own premises and used exclusively to house their own
58 34 labor or students. A manufactured home located in a land=
58 35 leased community shall be taxed under section 435.22 as if the
59 1 manufactured home were located in a mobile home park.
59 2 Sec. 118. Section 426B.1, subsection 3, Code 2005, is
59 3 amended to read as follows:
59 4 3. There is annually appropriated from the property tax
59 5 relief fund to the department of human services to supplement
59 6 the medical assistance appropriation for the fiscal year
59 7 beginning July 1, 1997, and for succeeding fiscal years, six
59 8 million six hundred thousand dollars to be used for the
59 9 nonfederal share of the costs of services provided to minors
59 10 with mental retardation under the medical assistance program
59 11 to meet the requirements of section 249A.12, subsection 4.
59 12 The appropriation in this subsection shall be charged to the
59 13 property tax relief fund prior to the distribution of moneys
59 14 from the fund under section 426B.2 and the amount of moneys
59 15 available for distribution shall be reduced accordingly.
59 16 However, the appropriation in this subsection shall be
59 17 considered to be a property tax relief payment for purposes of
59 18 the combined amount of payments required to achieve fifty
59 19 seventy=five percent of the counties' base year expenditures
59 20 as provided in section 426B.2, subsection 2.
59 21 Sec. 119. Section 426B.2, subsection 2, Code 2005, is
59 22 amended to read as follows:
59 23 2. The distributions under subsection 1 shall continue to
59 24 be made until the combined amount of the distributions made
59 25 under subsection 1 are equal to fifty seventy=five percent of
59 26 the total of all counties' base year expenditures as defined
59 27 in section 331.438.
59 28 Sec. 120. Section 427A.1, subsection 1, paragraph c, Code
59 29 2005, is amended to read as follows:
59 30 c. Buildings, structures or improvements, any of which are
59 31 constructed on or in the land, attached to the land, or placed
59 32 upon a foundation whether or not attached to the foundation.
59 33 However, property taxed under chapter 435 shall not be
59 34 assessed and taxed as real property.
59 35 Sec. 121. Section 435.1, subsections 3, 5, and 7, Code
60 1 2005, are amended to read as follows:
60 2 3. "Manufactured home" means a factory=built structure
60 3 built under authority of 42 U.S.C. } 5403, that is required by
60 4 federal law to display a seal from the United States
60 5 department of housing and urban development, and was
60 6 constructed on or after June 15, 1976. If a A manufactured
60 7 home is placed in a manufactured home community or a mobile
60 8 home park, the home must be titled and is subject to the
60 9 manufactured or mobile home square foot tax. If a
60 10 manufactured home is placed outside a manufactured home
60 11 community or a mobile home park, the home must be titled and
60 12 is to be assessed and taxed as real estate.
60 13 5. "Mobile home" means any vehicle without motive power
60 14 used or so manufactured or constructed as to permit its being
60 15 used as a conveyance upon the public streets and highways and
60 16 so designed, constructed, or reconstructed as will permit the
60 17 vehicle to be used as a place for human habitation by one or
60 18 more persons; but shall also include any such vehicle with
60 19 motive power not registered as a motor vehicle in Iowa. A
60 20 "mobile home" is not built to a mandatory building code,
60 21 contains no state or federal seals, and was built before June
60 22 15, 1976. If a A mobile home is placed outside a mobile home
60 23 park, the home is to be assessed and taxed as real estate.
60 24 7. "Modular home" means a factory=built structure which is
60 25 manufactured to be used as a place of human habitation, is
60 26 constructed to comply with the Iowa state building code for
60 27 modular factory=built structures, as adopted pursuant to
60 28 section 103A.7, and must display the seal issued by the state
60 29 building code commissioner. If a modular home is placed in a
60 30 manufactured home community or mobile home park, the home is
60 31 subject to the annual tax as required by section 435.22. If a
60 32 A modular home is placed outside a manufactured home community
60 33 or a mobile home park, the home shall be considered real
60 34 property and is to be assessed and taxed as real estate.
60 35 Sec. 122. Section 435.22, Code 2005, is amended by
61 1 striking the section and inserting in lieu thereof the
61 2 following:
61 3 435.22 ASSESSMENT == CREDITS.
61 4 A mobile home or manufactured home used primarily as a
61 5 residence shall be assessed as improved residential property
61 6 pursuant to section 441.21, subsection 4, and shall be taxed
61 7 an annual ad valorem tax in the same manner as other
61 8 residential property. A mobile home or manufactured home used
61 9 primarily for commercial or industrial purposes shall be
61 10 assessed as improved commercial or industrial property
61 11 pursuant to section 441.21, subsection 5A, and shall be taxed
61 12 an annual ad valorem tax in the same manner as other
61 13 commercial or industrial property. Persons who own a mobile
61 14 home or manufactured home as a homestead and who meet the
61 15 qualifications provided in section 425.2 are eligible for the
61 16 homestead exemption and if they meet the qualifications
61 17 provided in sections 425.17 through 425.37 are eligible for an
61 18 extraordinary property tax exemption. A person who owns a
61 19 mobile home or manufactured home is eligible to apply for the
61 20 military tax exemption as provided in section 426A.11.
61 21 Real estate located in a manufactured home community or a
61 22 mobile home park, as defined in section 435.1, shall be
61 23 assessed and taxed as improved residential property. Real
61 24 estate located in a land=leased community, as defined in
61 25 sections 335.30A and 414.28A, shall be assessed and taxed as
61 26 improved residential property.
61 27 Sec. 123. Section 435.23, Code 2005, is amended to read as
61 28 follows:
61 29 435.23 EXEMPTIONS == PRORATING TAX.
61 30 The manufacturer's and dealer's inventory of mobile homes,
61 31 manufactured homes, or modular homes not in use as a place of
61 32 human habitation shall be exempt from the annual tax. All
61 33 travel trailers shall be exempt from this tax. The homes and
61 34 travel trailers in the inventory of manufacturers and dealers
61 35 shall be exempt from personal property tax. The homes coming
62 1 into Iowa from out of state and located in a manufactured home
62 2 community or mobile home park shall be liable for the tax
62 3 computed pro rata to the nearest whole month, for the time the
62 4 home is actually situated in Iowa.
62 5 Sec. 124. Section 435.24, subsections 1, 2, and 4, Code
62 6 2005, are amended to read as follows:
62 7 1. The annual tax is due and payable to the county
62 8 treasurer on or after July 1 in each fiscal year and is
62 9 collectible in the same manner and at the same time as
62 10 ordinary taxes as provided in sections 445.36, 445.37, and
62 11 445.39. Interest at the rate prescribed by law shall accrue
62 12 on unpaid taxes. Both installments of taxes may be paid at
62 13 one time. The September installment represents a tax period
62 14 beginning July 1 and ending December 31. The March
62 15 installment represents a tax period beginning January 1 and
62 16 ending June 30. A mobile home, manufactured home, or modular
62 17 home coming into this state from outside the state, put in use
62 18 from a dealer's inventory, or put in use at any time after
62 19 July 1 or January 1, and located in a manufactured home
62 20 community or mobile home park, is subject to the taxes
62 21 prorated for the remaining unexpired months of the tax period,
62 22 but the purchaser is not required to pay the tax at the time
62 23 of purchase. Interest attaches the following April 1 for
62 24 taxes prorated on or after October 1. Interest attaches the
62 25 following October 1 for taxes prorated on or after April 1.
62 26 Interest at the rate prescribed by law shall accrue on unpaid
62 27 taxes. If the taxes are not paid, the county treasurer shall
62 28 send a statement of delinquent taxes as part of the notice of
62 29 tax sale as provided in section 446.9. The owner of a home
62 30 who sells the home between July 1 and December 31 and obtains
62 31 a tax clearance statement is responsible only for the
62 32 September tax payment and is not required to pay taxes for
62 33 subsequent tax periods. If the owner of a home located in a
62 34 manufactured home community or mobile home park sells the
62 35 home, obtains a tax clearance statement, and obtains a
63 1 replacement home to be located in a manufactured home
63 2 community or mobile home park, the owner shall not pay taxes
63 3 under this chapter for the newly acquired home for the same
63 4 tax period that the owner has paid taxes on the home sold.
63 5 Interest for delinquent taxes shall be calculated to the
63 6 nearest whole dollar. In calculating interest each fraction
63 7 of a month shall be counted as an entire month.
63 8 2. The home owners upon issuance of a certificate of title
63 9 or upon transporting to a new site shall file the address,
63 10 township, and school district, of the location where the home
63 11 is parked with the county treasurer's office. Failure to
63 12 comply is punishable as set out in section 435.18. When the
63 13 new location is outside of a manufactured home community or
63 14 mobile home park, the The county treasurer shall provide to
63 15 the assessor a copy of the tax clearance statement for
63 16 purposes of assessment as real estate on the following January
63 17 1.
63 18 4. The tax is a lien on the vehicle senior to any other
63 19 lien upon it except a judgment obtained in an action to
63 20 dispose of an abandoned home under section 555B.8. The home
63 21 bearing a current registration issued by any other state and
63 22 remaining within this state for an accumulated period not to
63 23 exceed ninety days in any twelve=month period is not subject
63 24 to Iowa tax. However, when one or more persons occupying a
63 25 home bearing a foreign registration are employed in this
63 26 state, there is no exemption from the Iowa tax. This tax is
63 27 in lieu of all other taxes general or local on a home.
63 28 Sec. 125. Section 435.26, subsection 1, paragraph a, Code
63 29 2005, is amended to read as follows:
63 30 a. A mobile home or manufactured home which is located
63 31 outside a manufactured home community or mobile home park
63 32 shall be converted to real estate by being placed on a
63 33 permanent foundation and shall be assessed for real estate
63 34 taxes. A home, after conversion to real estate, is eligible
63 35 for the homestead tax credit and the military service tax
64 1 exemption as provided in sections 425.2 and 426A.11. Such
64 2 mobile home or manufactured home is subject to the
64 3 requirements of this section.
64 4 Sec. 126. Section 435.27, subsection 1, Code 2005, is
64 5 amended to read as follows:
64 6 1. A mobile home or manufactured home converted to real
64 7 estate under section 435.26 may be reconverted to a home as
64 8 provided in this section when it that is moved to a
64 9 manufactured home community or mobile home park or a
64 10 manufactured or mobile home retailer's inventory is subject to
64 11 the requirements of this section. When the home is located
64 12 within a manufactured home community or mobile home park, the
64 13 home shall be taxed pursuant to section 435.22, subsection 1.
64 14 Sec. 127. Section 435.27, subsection 3, Code 2005, is
64 15 amended by striking the subsection.
64 16 Sec. 128. Section 435.28, Code 2005, is amended to read as
64 17 follows:
64 18 435.28 COUNTY TREASURER TO NOTIFY ASSESSOR.
64 19 Upon issuance of a certificate of title to a mobile home or
64 20 manufactured home which is not located in a manufactured home
64 21 community or mobile home park or dealer's inventory, the
64 22 county treasurer shall notify the assessor of the existence of
64 23 the home for tax assessment purposes.
64 24 Sec. 129. Section 435.35, Code 2005, is amended to read as
64 25 follows:
64 26 435.35 EXISTING HOME OUTSIDE OF MANUFACTURED HOME
64 27 COMMUNITY OR MOBILE HOME PARK == EXEMPTION.
64 28 A taxable mobile home or manufactured home which is not
64 29 located in a manufactured home community or mobile home park
64 30 as of January 1, 1995, shall be assessed and taxed as real
64 31 estate. The home is also exempt from the permanent foundation
64 32 requirements of this chapter until the home is relocated.
64 33 Sec. 130. Section 441.16, unnumbered paragraph 7, Code
64 34 2005, is amended to read as follows:
64 35 Any tax for the maintenance of the office of assessor and
65 1 other assessment procedure shall be levied only upon the
65 2 property in the area assessed by said assessor and such tax
65 3 levy shall not exceed forty and one=half cents per thousand
65 4 dollars of assessed value in assessing areas where the
65 5 valuation upon which the tax is levied does not exceed ninety=
65 6 two million, six hundred thousand dollars; thirty=three and
65 7 three=fourths cents per thousand dollars of assessed value in
65 8 assessing areas where the valuation upon which the tax is
65 9 levied exceeds ninety=two million, six hundred thousand
65 10 dollars and does not exceed one hundred eleven million, one
65 11 hundred twenty thousand dollars; twenty=seven cents per
65 12 thousand dollars of assessed value in assessing areas where
65 13 the valuation upon which the tax is levied exceeds one hundred
65 14 eleven million, one hundred twenty thousand dollars is subject
65 15 to the limitation in section 331.423 or 384.1, as applicable.
65 16 The county treasurer shall credit the sums received from such
65 17 levy to a separate fund to be known as the "assessment expense
65 18 fund" and from which fund all expenses incurred under this
65 19 chapter shall be paid. In the case of a county where there is
65 20 more than one assessor the treasurer shall maintain separate
65 21 assessment expense funds for each assessor.
65 22 Sec. 131. Section 441.50, Code 2005, is amended to read as
65 23 follows:
65 24 441.50 APPRAISERS EMPLOYED.
65 25 The conference board shall have power to employ appraisers
65 26 or other technical or expert help to assist in the valuation
65 27 of property, the cost thereof to be paid in the same manner as
65 28 other expenses of the assessor's office. The conference board
65 29 may certify for levy annually an amount not to exceed forty
65 30 and one=half cents per thousand dollars of assessed value of
65 31 taxable property, subject to the limitation in section 331.423
65 32 or 384.1, as applicable, for the purpose of establishing a
65 33 special appraiser's fund, to be used only for such purposes.
65 34 From time to time the conference board may direct the transfer
65 35 of any unexpended balance in the special appraiser's fund to
66 1 the assessment expense fund.
66 2 Sec. 132. NEW SECTION. 444.29 PROPERTY TAX LIMITATION ==
66 3 CONSUMER PRICE INDEX.
66 4 1. Notwithstanding the limitations in sections 331.423 and
66 5 384.1, beginning with the fiscal year beginning July 1, 2010,
66 6 the percentage increase in the amount of property taxes to be
66 7 levied by a city or a county against any class of property for
66 8 a fiscal year cannot exceed the amount computed in this
66 9 section.
66 10 2. The property tax limitation shall be computed as
66 11 follows:
66 12 a. Determine the amount of property taxes levied as a
66 13 percent of taxable value in the current fiscal year.
66 14 b. Determine the sum of the amount of taxable value of
66 15 property for the current fiscal year, and the amount of
66 16 increase in taxable value of property due to new construction,
66 17 additions or improvements to existing structures, expiration
66 18 of tax abatement under chapter 404, and any increase in
66 19 valuation because of reclassification of property.
66 20 c. Multiply the percent calculated in paragraph "a" times
66 21 the amount in paragraph "b".
66 22 d. Multiply the product determined in paragraph "c" times
66 23 the sum of one plus the consumer price index.
66 24 3. a. A city or county may exceed the limitation in this
66 25 section if the purpose of exceeding the limitation is to
66 26 provide additional property tax credits, exemptions, or
66 27 abatements, and if the proposition to exceed the limitation is
66 28 submitted at the regular city election in the case of a city
66 29 or at the general election in the case of a county.
66 30 b. Notice of the election shall be given by publication as
66 31 required by section 49.53.
66 32 c. The proposition of exceeding the limitation is not
66 33 adopted unless the proposition receives a favorable majority
66 34 of the votes cast on the proposition.
66 35 d. If the proposition of exceeding the limitation is
67 1 approved by the voters, the city or county may proceed to
67 2 exceed the limitation for a period not to exceed four years.
67 3 e. In no case shall the percentage rate limitations in
67 4 sections 331.423 and 384.1 be exceeded by operation of this
67 5 subsection.
67 6 4. For purposes of this section, "consumer price index"
67 7 means the percentage rate of change in the consumer price
67 8 index as tabulated by the United States department of labor,
67 9 bureau of labor statistics, for the twelve=month period ending
67 10 June 30 of the previous fiscal year.
67 11 Sec. 133. Section 445.1, subsection 6, Code 2005, is
67 12 amended to read as follows:
67 13 6. "Taxes" means an annual ad valorem tax, a special
67 14 assessment, a drainage tax, and a rate or charge, and taxes on
67 15 homes pursuant to chapter 435 which are collectible by the
67 16 county treasurer.
67 17 Sec. 134. Section 445.39, Code 2005, is amended to read as
67 18 follows:
67 19 445.39 INTEREST ON DELINQUENT TAXES.
67 20 If the first installment of taxes is not paid by the
67 21 delinquent date specified in section 445.37, the installment
67 22 becomes due and draws interest of one and one=half percent per
67 23 month until paid, from the delinquent date following the levy.
67 24 If the last half is not paid by the delinquent date specified
67 25 for it in section 445.37, the same interest shall be charged
67 26 from the date the last half became delinquent. However, after
67 27 April 1 in a fiscal year when late delivery of the tax list
67 28 referred to in chapter 443 results in a delinquency date later
67 29 than October 1 for the first installment, interest on
67 30 delinquent first installments shall accrue as if delivery were
67 31 made on the previous June 30. The interest imposed under this
67 32 section shall be computed to the nearest whole dollar and the
67 33 amount of interest shall not be less than one dollar. In
67 34 calculating interest each fraction of a month shall be counted
67 35 as an entire month. The interest percentage on delinquent
68 1 special assessments and rates or charges is the same as that
68 2 for the first installment of delinquent ad valorem taxes.
68 3 Sec. 135. Section 447.1, unnumbered paragraph 1, Code
68 4 2005, is amended to read as follows:
68 5 A parcel sold under this chapter and chapter 446 may be
68 6 redeemed at any time before the right of redemption expires,
68 7 by payment to the county treasurer, to be held by the
68 8 treasurer subject to the order of the purchaser, of the amount
68 9 for which the parcel was sold, including the fee for the
68 10 certificate of purchase, and interest of two one and one=half
68 11 percent per month, counting each fraction of a month as an
68 12 entire month, from the month of sale, and the total amount
68 13 paid by the purchaser or the purchaser's assignee for any
68 14 subsequent year, with interest at the same rate added on the
68 15 amount of the payment for each subsequent year from the month
68 16 of payment, counting each fraction of a month as an entire
68 17 month. The amount of interest must be at least one dollar and
68 18 shall be rounded to the nearest whole dollar. Interest shall
68 19 accrue on subsequent amounts from the month of payment by the
68 20 certificate holder.
68 21 Sec. 136. Sections 331.424, 331.424B, 331.425, 331.426,
68 22 384.12, 435.33 and 435.34, Code 2005, are repealed.
68 23 Sec. 137. EFFECTIVE AND APPLICABILITY DATES.
68 24 1. The sections of this division of this Act amending
68 25 section 403.19, subsections 2 and 7, take effect July 1, 2005,
68 26 and apply to taxes due and payable in the fiscal years
68 27 beginning on or after July 1, 2006.
68 28 2. The sections of this division amending sections 445.39
68 29 and 447.1 take effect July 1, 2005, and apply to property
68 30 taxes which become delinquent on or after July 1, 2005, and to
68 31 parcels sold for delinquent taxes on or after July 1, 2005.
68 32 3. The remainder of this division of this Act takes effect
68 33 July 1, 2006, and applies to fiscal years beginning on or
68 34 after July 1, 2007.
68 35 DIVISION VI
69 1 ASSESSMENT OF PROPERTY
69 2 Sec. 138. Section 403.20, Code 2005, is amended to read as
69 3 follows:
69 4 403.20 PERCENTAGE OF ADJUSTMENT CONSIDERED IN VALUE
69 5 ASSESSMENT.
69 6 In determining the assessed value of property within an
69 7 urban renewal area which is subject to a division of tax
69 8 revenues pursuant to section 403.19, the difference between
69 9 the actual value of the property as determined by the assessor
69 10 each year and the percentage of adjustment certified for that
69 11 year by the director of revenue on or before November 1
69 12 reductions applied to the property pursuant to section 441.21,
69 13 subsection 9 4, 5, 5A, or 5B, multiplied by the actual value
69 14 of the property as determined by the assessor, shall be
69 15 subtracted from the actual value of the property as determined
69 16 pursuant to section 403.19, subsection 1. If the assessed
69 17 value of the property as determined pursuant to section
69 18 403.19, subsection 1, is reduced to zero, the additional
69 19 valuation reduction shall be subtracted from the actual value
69 20 of the property as determined by the assessor.
69 21 Sec. 139. Section 433.6, Code 2005, is amended to read as
69 22 follows:
69 23 433.6 TAXABLE VALUE.
69 24 The taxable value shall be determined by taking the
69 25 percentage of the actual value so ascertained, reduced as
69 26 provided by section 441.21, and the ratio between the actual
69 27 value and the assessed or taxable value of the property of
69 28 each of said companies shall be the same as in the case of
69 29 property of private individuals.
69 30 Sec. 140. Section 437.7, Code 2005, is amended to read as
69 31 follows:
69 32 437.7 TAXABLE VALUE.
69 33 The taxable value of such line or lines of which the
69 34 director of revenue by this chapter is required to find the
69 35 value, shall be determined by taking the percentage of the
70 1 actual reduction in value so ascertained, as provided by
70 2 section 441.21, and the ratio between the actual value and the
70 3 assessed or taxable value of the transmission line or lines of
70 4 each of said companies located outside of cities shall be the
70 5 same as in the case of the property of private individuals.
70 6 Sec. 141. Section 441.1, Code 2005, is amended to read as
70 7 follows:
70 8 441.1 OFFICE OF ASSESSOR CREATED.
70 9 In Except as otherwise provided in section 441.16A, in
70 10 every county in the state of Iowa the office of assessor is
70 11 hereby created. A city having a population of ten thousand or
70 12 more, according to the latest federal census, may by ordinance
70 13 provide for the selection of a city assessor and for the
70 14 assessment of property in the city under the provisions of
70 15 this chapter. A city desiring to provide for assessment under
70 16 the provisions of this chapter shall, not less than sixty days
70 17 before the expiration of the term of the assessor in office,
70 18 notify the taxing bodies affected and proceed to establish a
70 19 conference board, examining board, and board of review and
70 20 select an assessor, all as provided in this chapter. A city
70 21 desiring to abolish the office of city assessor shall repeal
70 22 the ordinance establishing the office of city assessor, notify
70 23 the county conference board and the affected taxing districts,
70 24 provide for the transfer of appropriate records and other
70 25 matters, and provide for the abolition of the respective
70 26 boards and the termination of the terms of office of the
70 27 assessor and members of the respective boards. The abolition
70 28 of the city assessor's office shall take effect on July 1
70 29 following notification of the abolition unless otherwise
70 30 agreed to by the affected conference boards. If notification
70 31 of the proposed abolition is made after January 1, sufficient
70 32 funds shall be transferred from the city assessor's budget to
70 33 fund the additional responsibilities transferred to the county
70 34 assessor for the next fiscal year.
70 35 Sec. 142. NEW SECTION. 441.16A COUNTIES JOINING IN
71 1 EMPLOYMENT OF MULTICOUNTY ASSESSOR.
71 2 The conference boards of two or more adjacent counties may
71 3 enter into an agreement to jointly employ a county assessor.
71 4 Such agreement shall be written and entered in their
71 5 respective minutes and a copy of the agreement transmitted to
71 6 the conference board of each county that is a party to the
71 7 agreement. The written agreement shall provide for the manner
71 8 of allocation of the budget of the assessor's office. The
71 9 provisions of chapter 28E shall be applicable to this section,
71 10 except that such agreement shall not be applicable for a
71 11 period of less than six years beginning from the date the
71 12 multicounty assessor is appointed by the conference board.
71 13 A multicounty conference board shall be established as
71 14 provided in section 441.2, with representation from each
71 15 county that is a party to the agreement. The multicounty
71 16 conference board shall appoint one examining board.
71 17 The term of the multicounty assessor shall begin on July 1
71 18 following the date of the agreement and the terms of the
71 19 incumbent assessor in each county that is a party to the
71 20 agreement shall expire on that date, notwithstanding the term
71 21 specified in section 441.8.
71 22 Sec. 143. Section 441.21, subsection 1, paragraphs e, f,
71 23 and g, Code 2005, are amended by striking the paragraphs.
71 24 Sec. 144. Section 441.21, subsection 2, Code 2005, is
71 25 amended to read as follows:
71 26 2. In the event market value of the property being
71 27 assessed cannot be readily established in the foregoing
71 28 manner, then the assessor may determine the value of the
71 29 property using the other uniform and recognized appraisal
71 30 methods including its productive and earning capacity, if any,
71 31 industrial conditions, its cost, physical and functional
71 32 depreciation and obsolescence and replacement cost, and all
71 33 other factors which would assist in determining the fair and
71 34 reasonable market value of the property but the actual value
71 35 shall not be determined by use of only one such factor. The
72 1 following shall not be taken into consideration: Special
72 2 value or use value of the property to its present owner, and
72 3 the good will or value of a business which uses the property
72 4 as distinguished from the value of the property as property.
72 5 However, in assessing property that is rented or leased to
72 6 low=income individuals and families as authorized by section
72 7 42 of the Internal Revenue Code, as amended, and which section
72 8 limits the amount that the individual or family pays for the
72 9 rental or lease of units in the property, the assessor shall
72 10 use the productive and earning capacity from the actual rents
72 11 received as a method of appraisal and shall take into account
72 12 the extent to which that use and limitation reduces the market
72 13 value of the property. The assessor shall not consider any
72 14 tax credit equity or other subsidized financing as income
72 15 provided to the property in determining the assessed value.
72 16 The property owner shall notify the assessor when property is
72 17 withdrawn from section 42 eligibility under the Internal
72 18 Revenue Code. The property shall not be subject to section 42
72 19 assessment procedures for the assessment year for which
72 20 section 42 eligibility is withdrawn. This notification must
72 21 be provided to the assessor no later than March 1 of the
72 22 assessment year or the owner will be subject to a penalty of
72 23 five hundred dollars for that assessment year. The penalty
72 24 shall be collected at the same time and in the same manner as
72 25 regular property taxes. Upon adoption of uniform rules by the
72 26 revenue department or succeeding authority covering
72 27 assessments and valuations of such properties, said valuation
72 28 on such properties shall be determined in accordance therewith
72 29 with such uniform rules for assessment purposes to assure
72 30 uniformity, but such rules shall not be inconsistent with or
72 31 change the foregoing means of determining the actual, market,
72 32 taxable, and assessed values.
72 33 In the event market value of newly constructed residential
72 34 property being assessed cannot be readily established because
72 35 of insufficient comparable sales, the assessor shall use the
73 1 replacement cost method to value the property.
73 2 Sec. 145. Section 441.21, subsection 4, Code 2005, is
73 3 amended by striking the subsection and inserting in lieu
73 4 thereof the following:
73 5 4. a. For valuations established as of January 1, 2006,
73 6 the actual value at which residential property is assessed
73 7 shall be reduced by fifty percent up to a maximum of twenty
73 8 thousand dollars on each parcel of residential property
73 9 assessed for taxation. The reduction shall be applied to an
73 10 improved parcel only.
73 11 b. For valuations established as of January 1, 2006, the
73 12 actual value at which income residential property is assessed
73 13 shall be reduced by fifty percent up to a maximum of twenty
73 14 thousand dollars on each parcel of income residential property
73 15 assessed for taxation. The reduction shall be applied to an
73 16 improved parcel only. "Income residential property" means
73 17 buildings for human habitation that contain two or more
73 18 separate living quarters.
73 19 Sec. 146. Section 441.21, subsection 5, Code 2005, is
73 20 amended to read as follows:
73 21 5. For valuations established as of January 1, 1979,
73 22 commercial property and industrial property, excluding
73 23 properties referred to in section 427A.1, subsection 7, shall
73 24 be assessed as a percentage of the actual value of each class
73 25 of property. The percentage shall be determined for each
73 26 class of property by the director of revenue for the state in
73 27 accordance with the provisions of this section. For
73 28 valuations established as of January 1, 1979, the percentage
73 29 shall be the quotient of the dividend and divisor as defined
73 30 in this section. The dividend for each class of property
73 31 shall be the total actual valuation for each class of property
73 32 established for 1978, plus six percent of the amount so
73 33 determined. The divisor for each class of property shall be
73 34 the valuation for each class of property established for 1978,
73 35 as reported by the assessors on the abstracts of assessment
74 1 for 1978, plus the amount of value added to the total actual
74 2 value by the revaluation of existing properties in 1979 as
74 3 equalized by the director of revenue pursuant to section
74 4 441.49. For valuations established as of January 1, 1979,
74 5 property valued by the department of revenue pursuant to
74 6 sections 428.24 through 428.29, and chapters 428, 433, 437,
74 7 and 438 shall be considered as one class of property and shall
74 8 be assessed as a percentage of its actual value. The
74 9 percentage shall be determined by the director of revenue in
74 10 accordance with the provisions of this section. For
74 11 valuations established as of January 1, 1979, the percentage
74 12 shall be the quotient of the dividend and divisor as defined
74 13 in this section. The dividend shall be the total actual
74 14 valuation established for 1978 by the department of revenue,
74 15 plus ten percent of the amount so determined. The divisor for
74 16 property valued by the department of revenue pursuant to
74 17 sections 428.24 through 428.29 and chapters 428, 433, 437, and
74 18 438 shall be the valuation established for 1978, plus the
74 19 amount of value added to the total actual value by the
74 20 revaluation of the property by the department of revenue as of
74 21 January 1, 1979. For valuations established as of January 1,
74 22 1980, commercial property and industrial property, excluding
74 23 properties referred to in section 427A.1, subsection 7, shall
74 24 be assessed at a percentage of the actual value of each class
74 25 of property. The percentage shall be determined for each
74 26 class of property by the director of revenue for the state in
74 27 accordance with the provisions of this section. For
74 28 valuations established as of January 1, 1980, the percentage
74 29 shall be the quotient of the dividend and divisor as defined
74 30 in this section. The dividend for each class of property
74 31 shall be the dividend as determined for each class of property
74 32 for valuations established as of January 1, 1979, adjusted by
74 33 the product obtained by multiplying the percentage determined
74 34 for that year by the amount of any additions or deletions to
74 35 actual value, excluding those resulting from the revaluation
75 1 of existing properties, as reported by the assessors on the
75 2 abstracts of assessment for 1979, plus four percent of the
75 3 amount so determined. The divisor for each class of property
75 4 shall be the total actual value of all such property in 1979,
75 5 as equalized by the director of revenue pursuant to section
75 6 441.49, plus the amount of value added to the total actual
75 7 value by the revaluation of existing properties in 1980. The
75 8 director shall utilize information reported on the abstracts
75 9 of assessment submitted pursuant to section 441.45 in
75 10 determining such percentage. For valuations established as of
75 11 January 1, 1980, property valued by the department of revenue
75 12 pursuant to sections 428.24 through 428.29, and chapters 428,
75 13 433, 437, and 438 shall be assessed at a percentage of its
75 14 actual value. The percentage shall be determined by the
75 15 director of revenue in accordance with the provisions of this
75 16 section. For valuations established as of January 1, 1980,
75 17 the percentage shall be the quotient of the dividend and
75 18 divisor as defined in this section. The dividend shall be the
75 19 total actual valuation established for 1979 by the department
75 20 of revenue, plus eight percent of the amount so determined.
75 21 The divisor for property valued by the department of revenue
75 22 pursuant to sections 428.24 through 428.29, and chapters 428,
75 23 433, 437, and 438 shall be the valuation established for 1979,
75 24 plus the amount of value added to the total actual value by
75 25 the revaluation of the property by the department of revenue
75 26 as of January 1, 1980. For valuations established as of
75 27 January 1, 1981, and each year thereafter, the percentage of
75 28 actual value as equalized by the director of revenue as
75 29 provided in section 441.49 at which commercial property and
75 30 industrial property, excluding properties referred to in
75 31 section 427A.1, subsection 7, shall be assessed shall be
75 32 calculated in accordance with the methods provided herein,
75 33 except that any references to six percent in this subsection
75 34 shall be four percent. For valuations established as of
75 35 January 1, 1981, and each year thereafter, the percentage of
76 1 actual value at which property valued by the department of
76 2 revenue pursuant to sections 428.24 through 428.29, and
76 3 chapters 428, 433, 437, and 438 shall be assessed shall be
76 4 calculated in accordance with the methods provided herein in
76 5 this section, except that any references to ten percent in
76 6 this subsection shall be eight percent. Beginning with
76 7 valuations established as of January 1, 1979, and each year
76 8 thereafter, property valued by the department of revenue
76 9 pursuant to chapter 434 shall also be assessed at a percentage
76 10 of its actual value which percentage shall be equal to the
76 11 percentage determined by the director of revenue for
76 12 commercial property, industrial property, or property valued
76 13 by the department of revenue pursuant to sections 428.24
76 14 through 428.29, and chapters 428, 433, 437, and 438, whichever
76 15 is lowest.
76 16 Sec. 147. Section 441.21, Code 2005, is amended by adding
76 17 the following new subsections:
76 18 NEW SUBSECTION. 5A. For valuations established as of
76 19 January 1, 2006, the actual value at which commercial property
76 20 and industrial property is assessed shall be reduced by fifty
76 21 percent up to a maximum of twenty=five thousand dollars on
76 22 each parcel of commercial property or industrial property
76 23 assessed for taxation. The reduction shall be applied to an
76 24 improved parcel only.
76 25 NEW SUBSECTION. 5B. For valuations established as of
76 26 January 1, 2006, the actual value at which agricultural
76 27 property is assessed shall be reduced by fifty percent up to a
76 28 maximum of sixty=five thousand dollars per farm unit. For
76 29 purposes of this subsection, "farm unit" means a single
76 30 contiguous tract of agricultural land, or two or more adjacent
76 31 tracts of agricultural land upon which farming operations are
76 32 being conducted by a person who owns or is purchasing or
76 33 renting all of the land, or by that person's tenant or
76 34 tenants. If a landowner has multiple farm tenants, the land
76 35 on which farming operations are being conducted by each tenant
77 1 is a separate farm unit. Before assigning assessed value per
77 2 tract of agricultural land, the assessor shall establish a per
77 3 acre assessment for the agricultural property.
77 4 Sec. 148. Section 441.21, subsections 9 and 10, Code 2005,
77 5 are amended to read as follows:
77 6 9. Not later than November 1, 1979 2006, and November 1 of
77 7 each subsequent year, the director shall certify to the county
77 8 auditor of each county the percentages of actual value at
77 9 which residential property, agricultural property, commercial
77 10 property, industrial property, and property valued by the
77 11 department of revenue pursuant to sections 428.24 through
77 12 428.29, and chapters 428, 433, 434, 437, and 438 in each
77 13 assessing jurisdiction in the county shall be assessed for
77 14 taxation. The county auditor shall proceed to determine the
77 15 assessed values of agricultural property, residential
77 16 property, commercial property, industrial property, and
77 17 property valued by the department of revenue pursuant to
77 18 sections 428.24 through 428.29, and chapters 428, 433, 434,
77 19 437, and 438 by applying such percentages to the current
77 20 actual value of such property, as reported to the county
77 21 auditor by the assessor, and the assessed values so determined
77 22 shall be the taxable values of such properties upon which the
77 23 levy shall be made.
77 24 10. The percentage of actual value computed by the
77 25 director for agricultural property, residential property,
77 26 income residential property, commercial property, industrial
77 27 property, and property valued by the department of revenue
77 28 pursuant to sections 428.24 through 428.29, and chapters 428,
77 29 433, 434, 437, and 438 and used to determine assessed values
77 30 of those classes of property does not constitute a rule as
77 31 defined in section 17A.2, subsection 11.
77 32 Sec. 149. Section 441.21, Code 2005, is amended by adding
77 33 the following new subsection:
77 34 NEW SUBSECTION. 13. a. The reduction amounts in
77 35 subsections 4, 5A, and 5B shall each year be increased for
78 1 inflation. Upon determination of the latest cumulative
78 2 inflation factor, the director of revenue shall multiply each
78 3 dollar amount set forth in subsections 4, 5A, and 5B by this
78 4 cumulative inflation factor, shall round off the resulting
78 5 product to the nearest dollar, and shall transmit the result
78 6 to each city and county assessor for each assessment year.
78 7 b. For purposes of this subsection, "cumulative inflation
78 8 factor" means the product of the annual inflation factor for
78 9 the 2006 calendar year and all annual inflation factors for
78 10 subsequent calendar years as determined pursuant to this
78 11 subsection. The cumulative inflation factor applies to all
78 12 tax years beginning on or after January 1 of the calendar year
78 13 for which the latest annual inflation factor has been
78 14 determined.
78 15 c. In determining the annual inflation factor, the
78 16 department shall use the annual percent change, but not less
78 17 than zero percent, in the gross domestic product price
78 18 deflator computed for the second quarter of the calendar year
78 19 by the bureau of economic analysis of the United States
78 20 department of commerce and shall add all of that percent
78 21 change to one hundred percent. The annual inflation factor
78 22 and the cumulative inflation factor shall each be expressed as
78 23 a percentage rounded to the nearest one=tenth of one percent.
78 24 The annual inflation factor shall not be less than one hundred
78 25 percent.
78 26 d. The annual inflation factor for the 2006 assessment
78 27 year is one hundred percent.
78 28 Sec. 150. Section 441.21, Code 2005, is amended by adding
78 29 the following new subsection:
78 30 NEW SUBSECTION. 14. a. A tract of land containing an
78 31 animal feeding operation structure as defined in section
78 32 459.102, must be owned by an owner as defined in this
78 33 subsection and a designated person must be actively engaged in
78 34 farming during the calendar year preceding the calendar year
78 35 in which the land is assessed in order to be assessed and
79 1 taxed as agricultural property. All other tracts of land
79 2 containing an animal feeding operation structure shall be
79 3 assessed and taxed as commercial property.
79 4 b. For purposes of this subsection:
79 5 (1) "Actively engaged in farming" means the designated
79 6 person is personally involved in the production of crops and
79 7 livestock on the eligible tract on a regular, continuous, and
79 8 substantial basis. However, a lessor, whether under a cash or
79 9 a crop share lease, is not actively engaged in farming on the
79 10 area of the tract covered by the lease. This provision
79 11 applies to both written and oral leases.
79 12 (2) "Agricultural land" means land in tracts of ten acres
79 13 or more excluding any buildings or other structures located on
79 14 the land, and not laid off into lots of less than ten acres or
79 15 divided by streets and alleys into parcels of less than ten
79 16 acres, and in good faith used for agricultural or
79 17 horticultural purposes. Any land in tracts laid off or
79 18 platted into lots of less than ten acres belonging to and a
79 19 part of other lands of more than ten acres and in good faith
79 20 used for agricultural or horticultural purposes is entitled to
79 21 the benefits of this chapter.
79 22 (3) "Crop" or "crop production" includes pastureland.
79 23 (4) "Designated person" means one of the following:
79 24 (a) If the owner is an individual, the designated person
79 25 includes the owner of the tract, the owner's spouse, the
79 26 owner's child or stepchild, and their spouses, or the owner's
79 27 relative within the third degree of consanguinity, and the
79 28 relative's spouse.
79 29 (b) If the owner is a partnership, a partner or the
79 30 partner's spouse.
79 31 (c) If the owner is a family farm corporation, a family
79 32 member who is a shareholder of the family farm corporation or
79 33 the shareholder's spouse.
79 34 (d) If the owner is an authorized farm corporation, a
79 35 shareholder who owns at least fifty=one percent of the stock
80 1 of the authorized farm corporation or the shareholder's
80 2 spouse.
80 3 (e) If the owner is an individual who leases the tract to
80 4 a family farm corporation, a shareholder of the corporation if
80 5 the combined stock of the family farm corporation owned by the
80 6 owner of the tract and persons related to the owner as
80 7 enumerated in subparagraph subdivision (a) is equal to at
80 8 least fifty=one percent of the stock of the family farm
80 9 corporation.
80 10 (f) If the owner is an individual who leases the tract to
80 11 a partnership, a partner if the combined partnership interest
80 12 owned by a designated person as defined in subparagraph
80 13 subdivision (a) is equal to at least fifty=one percent of the
80 14 ownership interest of the partnership.
80 15 (5) "Eligible tract" or "eligible tract of agricultural
80 16 land" means an area of agricultural land which meets all of
80 17 the following:
80 18 (a) Is comprised of all of the contiguous tracts under
80 19 identical legal ownership that are located within the same
80 20 county.
80 21 (b) In the aggregate more than half the acres of the
80 22 contiguous tract are devoted to the production of crops or
80 23 livestock by a designated person who is actively engaged in
80 24 farming.
80 25 (c) For purposes of subparagraph (2), if some or all of
80 26 the contiguous tract is being farmed under a lease
80 27 arrangement, the activities of the lessor do not constitute
80 28 being actively engaged in farming on the areas of the tract
80 29 covered by the lease. If the lessee is a designated person
80 30 who is actively engaged in farming, the acres under lease may
80 31 be considered in determining whether more than half the acres
80 32 of the contiguous tract are devoted to the production of crops
80 33 or livestock.
80 34 (6) "Owner" means any of the following:
80 35 (a) An individual who holds the fee simple title to the
81 1 agricultural land.
81 2 (b) An individual who owns the agricultural land under a
81 3 contract of purchase which has been recorded in the office of
81 4 the county recorder of the county in which the agricultural
81 5 land is located.
81 6 (c) An individual who owns the agricultural land under
81 7 devise or by operation of the inheritance laws, where the
81 8 whole interest passes or where the divided interest is shared
81 9 only by individuals related or formerly related to each other
81 10 by blood, marriage, or adoption.
81 11 (d) An individual who owns the agricultural land under a
81 12 deed which conveys a divided interest, where the divided
81 13 interest is shared only by individuals related or formerly
81 14 related to each other by blood, marriage, or adoption.
81 15 (e) A partnership where all partners are related or
81 16 formerly related to each other by blood, marriage, or
81 17 adoption.
81 18 (f) A family farm corporation or authorized farm
81 19 corporation, as both are defined in section 9H.1, which owns
81 20 the agricultural land.
81 21 Sec. 151. NEW SECTION. 441.21A AGRICULTURAL LAND
81 22 RESERVE.
81 23 1. Land classified for property tax purposes as
81 24 agricultural land shall, upon application of the owner by
81 25 January 10 of the assessment year, be placed in an
81 26 agricultural land reserve by the assessor subject to this
81 27 section.
81 28 2. If accepted by the county, the application for
81 29 placement in an agricultural land reserve shall be stamped
81 30 approved and the assessor shall forward a copy of the
81 31 application to the recorder for recording.
81 32 3. An eligible tract of agricultural land shall be placed
81 33 in an agricultural land reserve if both of the following
81 34 apply:
81 35 a. The tract is owned by an owner as defined in this
82 1 section and a designated person is actively engaged in farming
82 2 the agricultural land during the calendar year preceding the
82 3 calendar year in which the land is assessed.
82 4 b. The assessed valuation of the land per acre exceeds the
82 5 average assessed valuation per acre of agricultural land in
82 6 the county by an amount equal to twenty=five percent or more
82 7 of the average valuation per acre of agricultural land in the
82 8 county.
82 9 4. Agricultural land placed in an agricultural land
82 10 reserve shall be assessed for property tax purposes at the
82 11 average assessed valuation per acre of agricultural land in
82 12 the county. The assessment under this section shall continue
82 13 until the land no longer qualifies for placement in an
82 14 agricultural land reserve pursuant to subsection 3.
82 15 5. Land no longer qualifying for placement in an
82 16 agricultural land reserve is subject to a recapture tax. The
82 17 tax shall be computed by multiplying the consolidated levy for
82 18 each of the years the land was in an agricultural land reserve
82 19 times the assessed value of the land that would have been
82 20 taxed but for the special valuation provisions of this
82 21 section. This tax shall be entered against the property on
82 22 the tax list for the current year and shall constitute a lien
82 23 against the property in the same manner as a lien for property
82 24 taxes. The tax when collected shall be apportioned in the
82 25 manner provided for the apportionment of the property taxes
82 26 for the applicable tax year.
82 27 6. For purposes of this section:
82 28 a. "Actively engaged in farming" means the designated
82 29 person is personally involved in the production of crops and
82 30 livestock on the eligible tract on a regular, continuous, and
82 31 substantial basis. However, a lessor, whether under a cash or
82 32 a crop share lease, is not actively engaged in farming on the
82 33 area of the tract covered by the lease. This provision
82 34 applies to both written and oral leases.
82 35 b. "Agricultural land" means land in tracts of ten acres
83 1 or more excluding any buildings or other structures located on
83 2 the land, and not laid off into lots of less than ten acres or
83 3 divided by streets and alleys into parcels of less than ten
83 4 acres, and in good faith used for agricultural or
83 5 horticultural purposes. Any land in tracts laid off or
83 6 platted into lots of less than ten acres belonging to and a
83 7 part of other lands of more than ten acres and in good faith
83 8 used for agricultural or horticultural purposes shall be
83 9 considered agricultural land.
83 10 c. "Crop" or "crop production" includes pastureland.
83 11 d. "Designated person" means one of the following:
83 12 (1) If the owner is an individual, the designated person
83 13 includes the owner of the tract, the owner's spouse, the
83 14 owner's child or stepchild, and their spouses, or the owner's
83 15 relative within the third degree of consanguinity, and the
83 16 relative's spouse.
83 17 (2) If the owner is a partnership, a partner or the
83 18 partner's spouse.
83 19 (3) If the owner is a family farm corporation, a family
83 20 member who is a shareholder of the family farm corporation or
83 21 the shareholder's spouse.
83 22 (4) If the owner is an authorized farm corporation, a
83 23 shareholder who owns at least fifty=one percent of the stock
83 24 of the authorized farm corporation or the shareholder's
83 25 spouse.
83 26 (5) If the owner is an individual who leases the tract to
83 27 a family farm corporation, a shareholder of the corporation if
83 28 the combined stock of the family farm corporation owned by the
83 29 owner of the tract and persons related to the owner as
83 30 enumerated in subparagraph (1) is equal to at least fifty=one
83 31 percent of the stock of the family farm corporation.
83 32 (6) If the owner is an individual who leases the tract to
83 33 a partnership, a partner if the combined partnership interest
83 34 owned by a designated person as defined in subparagraph (1) is
83 35 equal to at least fifty=one percent of the ownership interest
84 1 of the partnership.
84 2 e. "Eligible tract" or "eligible tract of agricultural
84 3 land" means an area of agricultural land that meets all of the
84 4 following:
84 5 (1) Is comprised of all of the contiguous tracts under
84 6 identical legal ownership that are located within the same
84 7 county.
84 8 (2) In the aggregate more than half the acres of the
84 9 contiguous tract are devoted to the production of crops or
84 10 livestock by a designated person who is actively engaged in
84 11 farming.
84 12 (3) For purposes of paragraph "b", if some or all of the
84 13 contiguous tract is being farmed under a lease arrangement,
84 14 the activities of the lessor do not constitute being actively
84 15 engaged in farming on the areas of the tract covered by the
84 16 lease. If the lessee is a designated person who is actively
84 17 engaged in farming, the acres under lease may be considered in
84 18 determining whether more than half the acres of the contiguous
84 19 tract are devoted to the production of crops or livestock.
84 20 f. "Owner" means any of the following:
84 21 (1) An individual who holds the fee simple title to the
84 22 agricultural land.
84 23 (2) An individual who owns the agricultural land under a
84 24 contract of purchase which has been recorded in the office of
84 25 the county recorder of the county in which the agricultural
84 26 land is located.
84 27 (3) An individual who owns the agricultural land under
84 28 devise or by operation of the inheritance laws, where the
84 29 whole interest passes or where the divided interest is shared
84 30 only by individuals related or formerly related to each other
84 31 by blood, marriage, or adoption.
84 32 (4) An individual who owns the agricultural land under a
84 33 deed which conveys a divided interest, where the divided
84 34 interest is shared only by individuals related or formerly
84 35 related to each other by blood, marriage, or adoption.
85 1 (5) A partnership where all partners are related or
85 2 formerly related to each other by blood, marriage, or
85 3 adoption.
85 4 (6) A family farm corporation or authorized farm
85 5 corporation, as both are defined in section 9H.1, which owns
85 6 the agricultural land.
85 7 Sec. 152. Section 441.40, Code 2005, is amended to read as
85 8 follows:
85 9 441.40 COSTS, FEES AND EXPENSES APPORTIONED.
85 10 The clerk of the court shall likewise certify to the county
85 11 treasurer the costs assessed by the court on any appeal from a
85 12 board of review to the district court, in all cases where said
85 13 costs are taxed against the board of review or any taxing
85 14 body. The district court may award payment of the property
85 15 owner's or aggrieved taxpayer's attorney fees as part of the
85 16 costs assessed by the court to be taxed against the board of
85 17 review or any taxing body, unless the court determines that
85 18 the protest was frivolous, and, in that case, the court may
85 19 assess the costs of defending the protest against the owner or
85 20 taxpayer who filed the protest. Thereupon the county
85 21 treasurer shall compute and apportion the said costs between
85 22 the various taxing bodies participating in the proceeds of the
85 23 collection of the taxes involved in any such appeal, and said
85 24 treasurer shall so compute and apportion the various amounts
85 25 which said taxing bodies are required to pay in proportion to
85 26 the amount of taxes each of said taxing bodies is entitled to
85 27 receive from the whole amount of taxes involved in each of
85 28 such appeals. The said county treasurer shall deduct from the
85 29 proceeds of all general taxes collected the amount of costs so
85 30 computed and apportioned by the treasurer from the moneys due
85 31 to each taxing body from general taxes collected. The amount
85 32 so deducted shall be certified to each taxing body in lieu of
85 33 moneys collected. Said county treasurer shall pay to the
85 34 clerk of the district court the amount of said costs so
85 35 computed, apportioned and collected by the treasurer in all
86 1 cases now on file or hereafter filed in which said costs have
86 2 not been paid.
86 3 Sec. 153. Section 441.47, Code 2005, is amended by adding
86 4 the following new unnumbered paragraph:
86 5 NEW UNNUMBERED PARAGRAPH. Each county for which a
86 6 multicounty assessor is appointed pursuant to section 441.16A
86 7 is considered a separate assessing jurisdiction for purposes
86 8 of this section.
86 9 Sec. 154. Section 441.54, Code 2005, is amended to read as
86 10 follows:
86 11 441.54 CONSTRUCTION.
86 12 Whenever in the laws of this state, the words "assessor" or
86 13 "assessors" appear, singly or in combination with other words,
86 14 they shall be deemed to mean and refer to the multicounty,
86 15 county, or city assessor, as the case may be.
86 16 Sec. 155. Section 441.72, Code 2005, is amended to read as
86 17 follows:
86 18 441.72 ASSESSMENT OF PLATTED LOTS.
86 19 When a subdivision plat is recorded pursuant to chapter
86 20 354, the individual lots within the subdivision plat shall not
86 21 be assessed in excess of the total assessment of the land as
86 22 acreage or unimproved property for three six years after the
86 23 recording of the plat or until the lot is actually improved
86 24 with permanent construction, whichever occurs first. When an
86 25 individual lot has been improved with permanent construction,
86 26 the lot shall be assessed for taxation purposes as provided in
86 27 chapter 428 and this chapter. This section does not apply to
86 28 special assessment levies.
86 29 Sec. 156. Section 441.73, subsection 4, Code 2005, is
86 30 amended to read as follows:
86 31 4. The executive council shall transfer for the fiscal
86 32 year beginning July 1, 1992, and each fiscal year thereafter,
86 33 from funds established in sections 425.1 and 426.1, an amount
86 34 necessary to pay litigation expenses. The amount of the fund
86 35 for each fiscal year shall not exceed seven hundred thousand
87 1 dollars. The executive council shall determine annually the
87 2 proportionate amounts to be transferred from the two separate
87 3 funds. At any time when no litigation is pending or in
87 4 progress the balance in the litigation expense fund shall not
87 5 exceed one hundred thousand dollars. Any excess moneys shall
87 6 be transferred in a proportionate amount back to the funds
87 7 from which they were originally transferred.
87 8 Sec. 157. Section 443.2, unnumbered paragraph 2, Code
87 9 2005, is amended to read as follows:
87 10 The county auditor shall list the aggregate actual value
87 11 and the aggregate taxable value of all taxable property within
87 12 the county and each political subdivision including property
87 13 subject to the statewide property tax imposed under section
87 14 437A.18 on the tax list in order that the actual value of the
87 15 taxable property within the county or a political subdivision
87 16 may be ascertained and shown by the tax list for the purpose
87 17 of computing the debt=incurring capacity of the county or
87 18 political subdivision. As used in this section, "actual
87 19 value" is the value determined under section 441.21,
87 20 subsections 1 to 3, prior to the reduction to a percentage of
87 21 in actual value as otherwise provided in section 441.21.
87 22 "Actual value" of property subject to statewide property tax
87 23 is the assessed value under section 437A.18.
87 24 Sec. 158. Chapter 405, Code 2005, is repealed.
87 25 Sec. 159. EFFECTIVE AND APPLICABILITY DATES. This
87 26 division of this Act takes effect January 1, 2006, and applies
87 27 to assessment years beginning on or after that date.
87 28 DIVISION VII
87 29 PROPERTY TAX CREDITS AND EXEMPTIONS
87 30 Sec. 160. Section 25B.7, subsection 2, Code 2005, is
87 31 amended by striking the subsection.
87 32 Sec. 161. Section 100.18, subsection 2, paragraph b, Code
87 33 2005, is amended to read as follows:
87 34 b. The rules shall require the installation of smoke
87 35 detectors in existing single=family rental units and multiple=
88 1 unit residential buildings. Existing single=family dwelling
88 2 units shall be equipped with approved smoke detectors. A
88 3 person who files for a homestead credit exemption pursuant to
88 4 chapter 425 shall certify that the single=family dwelling unit
88 5 for which the credit exemption is filed has a smoke detector
88 6 installed in compliance with this section, or that one will be
88 7 installed within thirty days of the date the filing for the
88 8 credit exemption is made. The state fire marshal shall adopt
88 9 rules and establish appropriate procedures to administer this
88 10 subsection.
88 11 Sec. 162. Section 216.12, subsection 5, Code 2005, is
88 12 amended to read as follows:
88 13 5. The rental or leasing of a housing accommodation in a
88 14 building which contains housing accommodations for not more
88 15 than four families living independently of each other, if the
88 16 owner resides in one of the housing accommodations for which
88 17 the owner qualifies for the homestead tax credit exemption
88 18 under section 425.1.
88 19 Sec. 163. Section 331.401, subsection 1, paragraph g, Code
88 20 2005, is amended by striking the paragraph.
88 21 Sec. 164. Section 331.512, subsection 3, Code 2005, is
88 22 amended to read as follows:
88 23 3. Carry out duties relating to the homestead tax credit
88 24 and agricultural land tax credit exemptions and the military
88 25 tax exemption as provided in chapters 425 and 426 426A.
88 26 Sec. 165. Section 331.512, subsection 4, Code 2005, is
88 27 amended by striking the subsection.
88 28 Sec. 166. Section 331.559, subsections 12, 13, and 14,
88 29 Code 2005, are amended by striking the subsections.
88 30 Sec. 167. Section 404.3, subsection 1, Code 2005, is
88 31 amended to read as follows:
88 32 1. All qualified real estate assessed as residential
88 33 property is eligible to receive an exemption from taxation
88 34 based on the actual value added by the improvements. The
88 35 exemption is for a period of ten years. The amount of the
89 1 exemption is equal to a percent of the actual value added by
89 2 the improvements, determined as follows: One hundred fifteen
89 3 percent of the value added by the improvements. However, the
89 4 amount of the actual value added by the improvements which
89 5 shall be used to compute the exemption shall not exceed twenty
89 6 thousand dollars and the granting of the exemption shall not
89 7 result in the actual value of the qualified real estate being
89 8 reduced below the actual value on which amount of the
89 9 homestead credit is computed exemption under section 425.1.
89 10 Sec. 168. Section 425.1, Code 2005, is amended by striking
89 11 the section and inserting in lieu thereof the following:
89 12 425.1 HOMESTEAD ASSESSMENT REDUCTION.
89 13 For valuations established pursuant to section 441.21, as
89 14 of January 1, 2006, and for subsequent assessment years, the
89 15 actual value at which an eligible homestead is assessed shall
89 16 be reduced by five thousand dollars. The reduction allowed
89 17 under this part is in addition to the reduction in section
89 18 441.21, subsection 4.
89 19 Sec. 169. Section 425.2, Code 2005, is amended to read as
89 20 follows:
89 21 425.2 QUALIFYING FOR CREDIT EXEMPTION.
89 22 A person who wishes to qualify for the credit exemption
89 23 allowed under this chapter shall obtain the appropriate forms
89 24 for filing for the credit exemption from the assessor. The
89 25 person claiming the credit exemption shall file a verified
89 26 statement and designation of homestead with the assessor for
89 27 the year for which the person is first claiming the credit
89 28 exemption. The claim shall be filed not later than July 1 of
89 29 the year for which the person is claiming the credit
89 30 exemption. A claim filed after July 1 of the year for which
89 31 the person is claiming the credit exemption shall be
89 32 considered as a claim filed for the following year.
89 33 Upon the filing and allowance of the claim, the claim shall
89 34 be allowed on that homestead for successive years without
89 35 further filing as long as the property is legally or equitably
90 1 owned and used as a homestead by that person or that person's
90 2 spouse on July 1 of each of those successive years, and the
90 3 owner of the property being claimed as a homestead declares
90 4 residency in Iowa for purposes of income taxation, and the
90 5 property is occupied by that person or that person's spouse
90 6 for at least six months in each of those calendar years in
90 7 which the fiscal year begins. When the property is sold or
90 8 transferred, the buyer or transferee who wishes to qualify
90 9 shall refile for the credit exemption. However, when the
90 10 property is transferred as part of a distribution made
90 11 pursuant to chapter 598, the transferee who is the spouse
90 12 retaining ownership of the property is not required to refile
90 13 for the credit exemption. Property divided pursuant to
90 14 chapter 598 shall not be modified following the division of
90 15 the property. An owner who ceases to use a property for a
90 16 homestead or intends not to use it as a homestead for at least
90 17 six months in a calendar year shall provide written notice to
90 18 the assessor by July 1 following the date on which the use is
90 19 changed. A person who sells or transfers a homestead or the
90 20 personal representative of a deceased person who had a
90 21 homestead at the time of death, shall provide written notice
90 22 to the assessor that the property is no longer the homestead
90 23 of the former claimant.
90 24 In case the owner of the homestead is in active service in
90 25 the armed forces of this state or of the United States, or is
90 26 sixty=five years of age or older, or is disabled, the
90 27 statement and designation may be signed and delivered by any
90 28 member of the owner's family, by the owner's guardian or
90 29 conservator, or by any other person who may represent the
90 30 owner under power of attorney. If the owner of the homestead
90 31 is married, the spouse may sign and deliver the statement and
90 32 designation. The director of human services or the director's
90 33 designee may make application for the benefits of this chapter
90 34 as the agent for and on behalf of persons receiving assistance
90 35 under chapter 249.
91 1 Any person sixty=five years of age or older or any person
91 2 who is disabled may request, in writing, from the appropriate
91 3 assessor forms for filing for the homestead tax credit
91 4 exemption. Any person sixty=five years of age or older or who
91 5 is disabled may complete the form, which shall include a
91 6 statement of homestead, and mail or return it to the
91 7 appropriate assessor. The signature of the claimant on the
91 8 statement shall be considered the claimant's acknowledgment
91 9 that all statements and facts entered on the form are correct
91 10 to the best of the claimant's knowledge.
91 11 Upon adoption of a resolution by the county board of
91 12 supervisors, any person may request, in writing, from the
91 13 appropriate assessor forms for the filing for the homestead
91 14 tax credit exemption. The person may complete the form, which
91 15 shall include a statement of homestead, and mail or return it
91 16 to the appropriate assessor. The signature of the claimant on
91 17 the statement of homestead shall be considered the claimant's
91 18 acknowledgment that all statements and facts entered on the
91 19 form are correct to the best of the claimant's knowledge.
91 20 Sec. 170. Section 425.3, unnumbered paragraph 4, Code
91 21 2005, is amended to read as follows:
91 22 The county auditor shall forward the claims to the board of
91 23 supervisors. The board shall allow or disallow the claims.
91 24 If the board disallows a claim, it shall send written notice,
91 25 by mail, to the claimant at the claimant's last known address.
91 26 The notice shall state the reasons for disallowing the claim
91 27 for the credit exemption. The board is not required to send
91 28 notice that a claim is disallowed if the claimant voluntarily
91 29 withdraws the claim.
91 30 Sec. 171. Section 425.6, Code 2005, is amended to read as
91 31 follows:
91 32 425.6 WAIVER BY NEGLECT.
91 33 If a person fails to file a claim or to have a claim on
91 34 file with the assessor for the credits exemption provided in
91 35 this chapter, the person is deemed to have waived the
92 1 homestead credit exemption for the year in which the person
92 2 failed to file the claim or to have a claim on file with the
92 3 assessor.
92 4 Sec. 172. Section 425.7, subsection 3, Code 2005, is
92 5 amended to read as follows:
92 6 3. If the director of revenue determines that a claim for
92 7 the homestead credit exemption has been allowed by the board
92 8 of supervisors which is not justifiable under the law and not
92 9 substantiated by proper facts, the director may, at any time
92 10 within thirty=six months from July 1 of the year in which the
92 11 claim is allowed, set aside the allowance. Notice of the
92 12 disallowance shall be given to the county auditor of the
92 13 county in which the claim has been improperly granted and a
92 14 written notice of the disallowance shall also be addressed to
92 15 the claimant at the claimant's last known address. The
92 16 claimant or board of supervisors may appeal to the state board
92 17 of tax review pursuant to section 421.1, subsection 4. The
92 18 claimant or the board of supervisors may seek judicial review
92 19 of the action of the state board of tax review in accordance
92 20 with chapter 17A.
92 21 If a claim is disallowed by the director of revenue and not
92 22 appealed to the state board of tax review or appealed to the
92 23 state board of tax review and thereafter upheld upon final
92 24 resolution, including any judicial review, any amounts of
92 25 credits allowed and paid from the homestead credit fund
92 26 including the penalty, if any, the taxes that would have been
92 27 due on the disallowed claim, if not otherwise paid, shall
92 28 become a lien upon the property on which credit the exemption
92 29 was originally granted, if still in the hands of the claimant,
92 30 and not in the hands of a bona fide purchaser, and any amount
92 31 so erroneously of such taxes not paid including the penalty,
92 32 if any, shall be collected by the county treasurer in the same
92 33 manner as other taxes and the collections shall be returned to
92 34 the department of revenue and credited to the homestead credit
92 35 fund. The director of revenue may institute legal proceedings
93 1 against a homestead credit claimant for the collection of
93 2 payments made on disallowed credits and the penalty, if any.
93 3 If a person makes a false claim or affidavit with fraudulent
93 4 intent to obtain the homestead credit exemption, the person is
93 5 guilty of a fraudulent practice and the claim shall be
93 6 disallowed in full. If the credit has been paid, the amount
93 7 of the credit plus a penalty equal to twenty=five percent of
93 8 the amount of credit plus interest, at the rate in effect
93 9 under section 421.7, from the time of payment shall be
93 10 collected by the county treasurer in the same manner as other
93 11 property taxes, penalty, and interest are collected and when
93 12 collected shall be paid to the director of revenue. If a
93 13 homestead credit exemption is disallowed and the claimant
93 14 failed to give written notice to the assessor as required by
93 15 section 425.2 when the property ceased to be used as a
93 16 homestead by the claimant, a civil penalty equal to five
93 17 percent of the amount of the taxes that would have been due on
93 18 the disallowed credit exemption is assessed against the
93 19 claimant.
93 20 Sec. 173. Section 425.8, unnumbered paragraph 1, Code
93 21 2005, is amended to read as follows:
93 22 The director of revenue shall prescribe the form for the
93 23 making of verified statement and designation of homestead, the
93 24 form for the supporting affidavits required herein, and such
93 25 other forms as may be necessary for the proper administration
93 26 of this chapter. Whenever necessary, the department of
93 27 revenue shall forward to the county auditors of the several
93 28 counties in the state the prescribed sample forms, and the
93 29 county auditors shall furnish blank forms prepared in
93 30 accordance therewith with the assessment rolls, books, and
93 31 supplies delivered to the assessors. The department of
93 32 revenue shall prescribe and the county auditors shall provide
93 33 on the forms for claiming the homestead credit exemption a
93 34 statement to the effect that the owner realizes that the owner
93 35 must give written notice to the assessor when the owner
94 1 changes the use of the property.
94 2 Sec. 174. Section 425.9, Code 2005, is amended by striking
94 3 the section and inserting in lieu thereof the following:
94 4 425.9 EXEMPTION == APPEAL == CREDIT.
94 5 If any claim for exemption made under this chapter has been
94 6 denied by the board of supervisors, and such action is
94 7 subsequently reversed on appeal, the exemption shall be
94 8 allowed on the homestead involved in the appeal, and the
94 9 director of revenue, the county auditor, and the county
94 10 treasurer shall change their books and records accordingly.
94 11 If the tax has been levied on the exemption amount of the
94 12 homestead of the appealing taxpayer or the appealing taxpayer
94 13 has paid one or both of the installments of the tax payable in
94 14 the year or years in question on such homestead valuation, a
94 15 credit for such taxes shall be applied to the property if
94 16 still in the hands of the claimant.
94 17 Sec. 175. Section 425.10, Code 2005, is amended to read as
94 18 follows:
94 19 425.10 REVERSAL OF ALLOWED CLAIM.
94 20 In the event any claim is allowed, and subsequently
94 21 reversed on appeal, any credit exemption made thereunder shall
94 22 be void, and the amount of such credit the taxes that would
94 23 have been due on the exemption shall be charged against the
94 24 property in question, and the director of revenue, the county
94 25 auditor, and the county treasurer are authorized and directed
94 26 to correct their books and records accordingly. The amount of
94 27 such taxes due on the erroneous credit exemption, when
94 28 collected, shall be returned distributed by the county
94 29 treasurer to the homestead credit fund to be reallocated the
94 30 following year as provided herein other jurisdictions in the
94 31 same proportion as the other taxes.
94 32 Sec. 176. Section 425.11, subsection 3, paragraph a,
94 33 unnumbered paragraph 1, Code 2005, is amended to read as
94 34 follows:
94 35 The homestead includes the dwelling house which the owner,
95 1 in good faith, is occupying as a home on July 1 of the year
95 2 for which the credit exemption is claimed and occupies as a
95 3 home for at least six months during the calendar year in which
95 4 the fiscal year begins, except as otherwise provided.
95 5 Sec. 177. Section 425.11, subsection 3, paragraph c, Code
95 6 2005, is amended to read as follows:
95 7 c. It must not embrace more than one dwelling house, but
95 8 where a homestead has more than one dwelling house situated
95 9 thereon, the credit exemption provided for in this chapter
95 10 shall apply to the home and buildings used by the owner, but
95 11 shall not apply to any other dwelling house and buildings
95 12 appurtenant.
95 13 Sec. 178. Section 425.11, subsection 4, unnumbered
95 14 paragraph 1, Code 2005, is amended to read as follows:
95 15 The word "owner" shall mean the person who holds the fee
95 16 simple title to the homestead, and in addition shall mean the
95 17 person occupying as a surviving spouse or the person occupying
95 18 under a contract of purchase which contract has been recorded
95 19 in the office of the county recorder of the county in which
95 20 the property is located, or the person occupying the homestead
95 21 under devise or by operation of the inheritance laws where the
95 22 whole interest passes or where the divided interest is shared
95 23 only by persons related or formerly related to each other by
95 24 blood, marriage or adoption, or the person occupying the
95 25 homestead is a shareholder of a family farm corporation that
95 26 owns the property, or the person occupying the homestead under
95 27 a deed which conveys a divided interest where the divided
95 28 interest is shared only by persons related or formerly related
95 29 to each other by blood, marriage or adoption or where the
95 30 person occupying the homestead holds a life estate with the
95 31 reversion interest held by a nonprofit corporation organized
95 32 under chapter 504 or 504A, provided that the holder of the
95 33 life estate is liable for and pays property tax on the
95 34 homestead or where the person occupying the homestead holds an
95 35 interest in a horizontal property regime under chapter 499B,
96 1 regardless of whether the underlying land committed to the
96 2 horizontal property regime is in fee or as a leasehold
96 3 interest, provided that the holder of the interest in the
96 4 horizontal property regime is liable for and pays property tax
96 5 on the homestead. For the purpose of this chapter the word
96 6 "owner" shall be construed to mean a bona fide owner and not
96 7 one for the purpose only of availing the person of the
96 8 benefits of this chapter. In order to qualify for the
96 9 homestead tax credit exemption, evidence of ownership shall be
96 10 on file in the office of the clerk of the district court or
96 11 recorded in the office of the county recorder at the time the
96 12 owner files with the assessor a verified statement of the
96 13 homestead claimed by the owner as provided in section 425.2.
96 14 Sec. 179. Section 425.12, Code 2005, is amended to read as
96 15 follows:
96 16 425.12 INDIAN LAND.
96 17 Each forty acres of land, or fraction thereof, occupied by
96 18 a member or members of the Sac and Fox Indians in Tama county,
96 19 which land is held in trust by the secretary of the interior
96 20 of the United States for said Indians, shall be given a
96 21 homestead tax credit exemption within the meaning and under
96 22 the provisions of this chapter. Application for such
96 23 homestead tax credit exemption shall be made to the county
96 24 auditor of Tama county and may be made by a representative of
96 25 the tribal council.
96 26 Sec. 180. Section 425.13, Code 2005, is amended to read as
96 27 follows:
96 28 425.13 CONSPIRACY TO DEFRAUD.
96 29 If any two or more persons conspire and confederate
96 30 together with fraudulent intent to obtain the credit exemption
96 31 provided for under the terms of this chapter by making a false
96 32 deed, or a false contract of purchase, they are guilty of a
96 33 fraudulent practice.
96 34 Sec. 181. Section 425.15, Code 2005, is amended to read as
96 35 follows:
97 1 425.15 DISABLED VETERAN TAX CREDIT EXEMPTION.
97 2 If the owner of a homestead allowed a credit an exemption
97 3 under this chapter is a veteran of any of the military forces
97 4 of the United States, who acquired the homestead under 38
97 5 U.S.C. } 21.801, 21.802, or 38 U.S.C. } 2101, 2102, the credit
97 6 exemption allowed on the homestead from the homestead credit
97 7 fund shall be the entire amount of the tax levied assessed
97 8 value on the homestead. The credit exemption allowed shall be
97 9 continued to the estate of a veteran who is deceased or the
97 10 surviving spouse and any child, as defined in section 234.1,
97 11 who are the beneficiaries of a deceased veteran, so long as
97 12 the surviving spouse remains unmarried. This section is not
97 13 applicable to the holder of title to any homestead whose
97 14 annual income, together with that of the titleholder's spouse,
97 15 if any, for the last preceding twelve=month income tax
97 16 accounting period exceeds thirty=five thousand dollars. For
97 17 the purpose of this section "income" means taxable income for
97 18 federal income tax purposes plus income from securities of
97 19 state and other political subdivisions exempt from federal
97 20 income tax. A veteran or a beneficiary of a veteran who
97 21 elects to secure the credit exemption provided in this section
97 22 is not eligible for any other real property tax exemption
97 23 provided by law for veterans of military service. If a
97 24 veteran acquires a different homestead, the credit exemption
97 25 allowed under this section may be claimed on the new homestead
97 26 unless the veteran fails to meet the other requirements of
97 27 this section.
97 28 Sec. 182. Section 425.16, Code 2005, is amended to read as
97 29 follows:
97 30 425.16 ADDITIONAL TAX CREDIT EXEMPTION.
97 31 In addition to the homestead tax credit exemption allowed
97 32 under section 425.1, subsections 1 to 4, persons who own or
97 33 rent their homesteads and who meet the qualifications provided
97 34 in this division are eligible for an extraordinary property
97 35 tax credit or reimbursement exemption.
98 1 For valuations established pursuant to section 441.21, as
98 2 of January 1, 2006, and for subsequent assessment years, the
98 3 actual value at which an eligible homestead under this part is
98 4 assessed shall be reduced by two thousand five hundred
98 5 dollars.
98 6 The reduction allowed under this part is in addition to the
98 7 reduction in section 441.21, subsection 4.
98 8 Sec. 183. Section 425.17, subsection 2, Code 2005, is
98 9 amended to read as follows:
98 10 2. "Claimant" means either of the following:
98 11 a. A person filing a claim for credit or reimbursement
98 12 exemption under this division who has attained the age of
98 13 sixty=five years on or before December 31 of the base year or
98 14 who is totally disabled and was totally disabled on or before
98 15 December 31 of the base year and is domiciled in this state at
98 16 the time the claim is filed or at the time of the person's
98 17 death in the case of a claim filed by the executor or
98 18 administrator of the claimant's estate and whose income in the
98 19 base year was less than sixteen thousand five hundred dollars.
98 20 b. A person filing a claim for credit or reimbursement
98 21 exemption under this division who has attained the age of
98 22 twenty=three years on or before December 31 of the base year
98 23 or was a head of household on December 31 of the base year, as
98 24 defined in the Internal Revenue Code, but has not attained the
98 25 age or disability status described in paragraph "a", and is
98 26 domiciled in this state at the time the claim is filed or at
98 27 the time of the person's death in the case of a claim filed by
98 28 the executor or administrator of the claimant's estate, and
98 29 was not claimed as a dependent on any other person's tax
98 30 return for the base year and whose income in the base year was
98 31 less than sixteen thousand five hundred dollars.
98 32 "Claimant" under paragraph "a" or "b" includes a vendee in
98 33 possession under a contract for deed and may include one or
98 34 more joint tenants or tenants in common. In the case of a
98 35 claim for rent constituting property taxes paid, the claimant
99 1 shall have rented the property during any part of the base
99 2 year. In the case of a claim for property taxes due, the The
99 3 claimant shall have occupied the property during any part of
99 4 the fiscal year beginning July 1 of the base year. If a
99 5 homestead is occupied by two or more persons, and more than
99 6 one person is able to qualify as a claimant, the persons may
99 7 each file a claim based upon each person's income and rent
99 8 constituting property taxes paid or property taxes due.
99 9 Sec. 184. Section 425.17, subsection 3, Code 2005, is
99 10 amended by striking the subsection.
99 11 Sec. 185. Section 425.17, subsection 4, Code 2005, is
99 12 amended to read as follows:
99 13 4. "Homestead" means the dwelling owned or rented and
99 14 actually used as a home by the claimant during the period
99 15 specified in subsection 2, and so much of the land surrounding
99 16 it including one or more contiguous lots or tracts of land, as
99 17 is reasonably necessary for use of the dwelling as a home, and
99 18 may consist of a part of a multidwelling or multipurpose
99 19 building and a part of the land upon which it is built. It
99 20 does not include personal property except that a manufactured
99 21 or mobile home may be a homestead. Any dwelling or a part of
99 22 a multidwelling or multipurpose building which is exempt from
99 23 taxation does not qualify as a homestead under this division.
99 24 However, solely for purposes of claimants living in a property
99 25 and receiving reimbursement for rent constituting property
99 26 taxes paid immediately before the property becomes tax exempt,
99 27 and continuing to live in it after it becomes tax exempt, the
99 28 property shall continue to be classified as a homestead. A
99 29 homestead must be located in this state. When a person is
99 30 confined in a nursing home, extended=care facility, or
99 31 hospital, the person shall be considered as occupying or
99 32 living in the person's homestead if the person is the owner of
99 33 the homestead and the person maintains the homestead and does
99 34 not lease, rent, or otherwise receive profits from other
99 35 persons for the use of the homestead.
100 1 Sec. 186. Section 425.17, subsections 8 and 9, Code 2005,
100 2 are amended by striking the subsections.
100 3 Sec. 187. Section 425.18, Code 2005, is amended to read as
100 4 follows:
100 5 425.18 RIGHT TO FILE A CLAIM.
100 6 The right to file a claim for reimbursement or credit
100 7 exemption under this division may be exercised by the claimant
100 8 or on behalf of a claimant by the claimant's legal guardian,
100 9 spouse, or attorney, or by the executor or administrator of
100 10 the claimant's estate. If a claimant dies after having filed
100 11 a claim for reimbursement for rent constituting property taxes
100 12 paid, the amount of the reimbursement may be paid to another
100 13 member of the household as determined by the director. If the
100 14 claimant was the only member of the household, the
100 15 reimbursement may be paid to the claimant's executor or
100 16 administrator, but if neither is appointed and qualified
100 17 within one year from the date of the filing of the claim, the
100 18 reimbursement shall escheat to the state. If a claimant dies
100 19 after having filed a claim for credit for property taxes due
100 20 exemption, the amount of credit the exemption shall be paid
100 21 allowed as if the claimant had not died.
100 22 Sec. 188. Section 425.19, Code 2005, is amended to read as
100 23 follows:
100 24 425.19 CLAIM AND CREDIT OR REIMBURSEMENT EXEMPTION.
100 25 Subject to the limitations provided in this division, a
100 26 claimant may annually claim a credit for property taxes due an
100 27 exemption during the fiscal year next following the base year
100 28 or claim a reimbursement for rent constituting property taxes
100 29 paid in the base year. The amount of the credit for property
100 30 taxes due for a homestead shall be paid on June 15 of each
100 31 year by the director to the county treasurer who shall credit
100 32 the money received against the amount of the property taxes
100 33 due and payable on the homestead of the claimant and the
100 34 amount of the reimbursement for rent constituting property
100 35 taxes paid shall be paid to the claimant from the state
101 1 general fund on or before December 31 of each year.
101 2 Sec. 189. Section 425.20, unnumbered paragraph 1, Code
101 3 2005, is amended by striking the unnumbered paragraph.
101 4 Sec. 190. Section 425.20, unnumbered paragraphs 2 and 3,
101 5 Code 2005, are amended to read as follows:
101 6 A claim for credit for property taxes due exemption shall
101 7 not be paid or allowed unless the claim is filed with the
101 8 county treasurer between January 1 and June 1, both dates
101 9 inclusive, immediately preceding the fiscal year during which
101 10 the property taxes are due. However, in case of sickness,
101 11 absence, or other disability of the claimant, or if in the
101 12 judgment of the county treasurer good cause exists, the county
101 13 treasurer may extend the time for filing a claim for credit
101 14 exemption through September 30 of the same calendar year. The
101 15 county treasurer shall certify to the director of revenue on
101 16 or before May 1 of each year the total amount of dollars due
101 17 for claims allowed.
101 18 In case of sickness, absence, or other disability of the
101 19 claimant or if, in the judgment of the director of revenue,
101 20 good cause exists and the claimant requests an extension, the
101 21 director may extend the time for filing a claim for
101 22 reimbursement or credit exemption. However, any further time
101 23 granted shall not extend beyond December 31 of the year
101 24 following the year in which the claim was required to be
101 25 filed. Claims filed as a result of this paragraph shall be
101 26 filed with the director who shall provide for the
101 27 reimbursement of the claim to the claimant.
101 28 Sec. 191. Section 425.22, Code 2005, is amended to read as
101 29 follows:
101 30 425.22 ONE CLAIMANT PER HOUSEHOLD.
101 31 Only one claimant per household per year shall be entitled
101 32 to reimbursement under this division and only one claimant per
101 33 household per fiscal year shall be entitled to a credit an
101 34 exemption under this division.
101 35 Sec. 192. Section 425.23, Code 2005, is amended by
102 1 striking the section and inserting in lieu thereof the
102 2 following:
102 3 425.23 ANNUAL ADJUSTMENT TO INCOME.
102 4 1. For the base year beginning in the 2006 calendar year
102 5 and for each subsequent base year, the dollar amounts set
102 6 forth in section 425.17, subsection 2, shall be multiplied by
102 7 the cumulative adjustment factor for that base year.
102 8 "Cumulative adjustment factor" means the product of the annual
102 9 adjustment factor for the 2005 base year and all annual
102 10 adjustment factors for subsequent base years. The cumulative
102 11 adjustment factor applies to the base year beginning in the
102 12 calendar year for which the latest annual adjustment factor
102 13 has been determined.
102 14 2. The annual adjustment factor for the 2005 base year is
102 15 one hundred percent. For each subsequent base year, the
102 16 annual adjustment factor equals the annual inflation factor
102 17 for the calendar year, in which the base year begins, as
102 18 computed in section 422.4 for purposes of the individual
102 19 income tax.
102 20 Sec. 193. Section 425.26, subsections 2 and 3, Code 2005,
102 21 are amended by striking the subsections.
102 22 Sec. 194. Section 425.27, Code 2005, is amended to read as
102 23 follows:
102 24 425.27 AUDIT == RECALCULATION OR DENIAL.
102 25 If on the audit of a claim for credit or reimbursement
102 26 exemption under this division, the director determines the
102 27 amount of the claim to have been incorrectly calculated or
102 28 that the claim is not allowable, the director shall
102 29 recalculate the claim and notify the claimant of the
102 30 recalculation or denial and the reasons for it. The director
102 31 shall not adjust a claim after three years from October 31 of
102 32 the year in which the claim was filed. If the claim for
102 33 reimbursement has been paid, the amount may be recovered by
102 34 assessment in the same manner that income taxes are assessed
102 35 under sections 422.26 and 422.30. If the claim for credit
103 1 exemption has been paid allowed, the director shall give
103 2 notification to the claimant and the county treasurer of the
103 3 recalculation or denial of the claim and the county treasurer
103 4 shall proceed to collect the tax owed in the same manner as
103 5 other property taxes due and payable are collected, if the
103 6 property on which the credit exemption was granted is still
103 7 owned by the claimant, and repay the amount to the director
103 8 upon collection. If the property on which the credit
103 9 exemption was granted is not owned by the claimant, the amount
103 10 may be recovered from the claimant by assessment in the same
103 11 manner that income taxes are assessed under sections 422.26
103 12 and 422.30. The recalculation of the claim property taxes due
103 13 shall be final unless appealed as provided in section 425.31.
103 14 Section 422.70 is applicable with respect to this division.
103 15 Sec. 195. Section 425.28, unnumbered paragraph 2, Code
103 16 2005, is amended to read as follows:
103 17 The department of revenue may release information
103 18 pertaining to a person's eligibility or claim for or receipt
103 19 of rent reimbursement to an employee of the department of
103 20 inspections and appeals in the employee's official conduct of
103 21 an audit or investigation.
103 22 Sec. 196. Section 425.29, Code 2005, is amended to read as
103 23 follows:
103 24 425.29 FALSE CLAIM == PENALTY.
103 25 A person who makes a false affidavit for the purpose of
103 26 obtaining credit or reimbursement an exemption provided for in
103 27 this division or who knowingly receives the credit or
103 28 reimbursement exemption without being legally entitled to it
103 29 or makes claim for the credit or reimbursement exemption in
103 30 more than one county in the state without being legally
103 31 entitled to it is guilty of a fraudulent practice. The claim
103 32 for credit or reimbursement exemption shall be disallowed in
103 33 full and if the claim reduction in value has been paid made,
103 34 the amount of the exemption credited as taxes shall be
103 35 recovered in the manner provided in section 425.27. The
104 1 director of revenue shall send a notice of disallowance of the
104 2 claim.
104 3 Sec. 197. Section 426A.6, Code 2005, is amended to read as
104 4 follows:
104 5 426A.6 SETTING ASIDE ALLOWANCE.
104 6 If the director of revenue determines that a claim for
104 7 military service tax exemption has been allowed by a board of
104 8 supervisors which is not justifiable under the law and not
104 9 substantiated by proper facts, the director may, at any time
104 10 within thirty=six months from July 1 of the year in which the
104 11 claim is allowed, set aside the allowance. Notice of the
104 12 disallowance shall be given to the county auditor of the
104 13 county in which the claim has been improperly granted and a
104 14 written notice of the disallowance shall also be addressed to
104 15 the claimant at the claimant's last known address. The
104 16 claimant or the board of supervisors may appeal to the state
104 17 board of tax review pursuant to section 421.1, subsection 4.
104 18 The claimant or the board of supervisors may seek judicial
104 19 review of the action of the state board of tax review in
104 20 accordance with chapter 17A. If a claim is disallowed by the
104 21 director of revenue and not appealed to the state board of tax
104 22 review or appealed to the state board of tax review and
104 23 thereafter upheld upon final resolution, including judicial
104 24 review, the credits allowed and paid from the general fund of
104 25 the state taxes that would have been due on the disallowed
104 26 claim, if not otherwise paid, shall become a lien upon the
104 27 property on which the credit was originally granted, if still
104 28 in the hands of the claimant and not in the hands of a bona
104 29 fide purchaser, and the amount so erroneously of such taxes
104 30 not paid shall be collected by the county treasurer in the
104 31 same manner as other taxes, and the collections shall be
104 32 returned to the department of revenue and credited to the
104 33 general fund of the state. The director of revenue county
104 34 attorney may institute legal proceedings against a military
104 35 service tax exemption claimant for the collection of payments
105 1 made on disallowed exemptions.
105 2 Sec. 198. Section 426A.8, Code 2005, is amended by
105 3 striking the section and inserting in lieu thereof the
105 4 following:
105 5 426A.8 APPEALS.
105 6 If any claim for exemption made has been denied by the
105 7 board of supervisors, and the action is subsequently reversed
105 8 on appeal, the exemption shall be allowed on the assessed
105 9 valuation, and the county auditor and the county treasurer
105 10 shall change their books and records accordingly.
105 11 If the appealing taxpayer has paid one or both of the
105 12 installments of the tax payable in the year or years in
105 13 question on such military service tax exemption valuation, a
105 14 credit for such taxes shall be applied to the property if
105 15 still in the hands of the claimant.
105 16 Sec. 199. Section 426A.9, Code 2005, is amended to read as
105 17 follows:
105 18 426A.9 ERRONEOUS CREDITS EXEMPTIONS.
105 19 If any claim is allowed, and subsequently reversed on
105 20 appeal, any credit exemption shall be void, and the amount of
105 21 the credit taxes that would have been due on the exemption
105 22 shall be charged against the property in question, and the
105 23 director of revenue, the county auditor and the county
105 24 treasurer shall correct their books and records. The amount
105 25 of taxes due on the erroneous credit exemption, when
105 26 collected, shall be returned distributed by the county
105 27 treasurer to the general fund of the state other jurisdictions
105 28 in the same proportion as the other taxes.
105 29 Sec. 200. Section 426A.11, Code 2005, is amended to read
105 30 as follows:
105 31 426A.11 MILITARY SERVICE == EXEMPTIONS.
105 32 The following exemptions from taxation shall be allowed:
105 33 1. The property, not to exceed two thousand seven hundred
105 34 seventy=eight dollars in taxable value of any veteran, as
105 35 defined in section 35.1, of the First World War.
106 1 2. 1. The property, not to exceed one two thousand eight
106 2 hundred fifty=two dollars in taxable value of an honorably
106 3 separated, retired, furloughed to a reserve, placed on
106 4 inactive status, or discharged veteran, as defined in section
106 5 35.1 or a person currently serving in the armed forces of the
106 6 United States.
106 7 3. 2. Where the word "veteran" appears in this chapter,
106 8 it Service in the armed forces of the United States includes,
106 9 without limitation, the members service as a member of the
106 10 United States air force, merchant marine, and coast guard,
106 11 reserve forces, Iowa national guard, and women's air force and
106 12 army corps.
106 13 4. 3. For the purpose of determining a military tax
106 14 exemption under this section, property includes a manufactured
106 15 or mobile home as defined in section 435.1.
106 16 Sec. 201. Section 426A.13, unnumbered paragraphs 1 through
106 17 3, Code 2005, are amended to read as follows:
106 18 A person named in section 426A.11, who is a resident of and
106 19 domiciled in the state of Iowa, shall receive a reduction
106 20 equal to the exemption, to be made from any property owned by
106 21 the person or owned by a family farm corporation of which the
106 22 person is a shareholder and who occupies the property and so
106 23 designated by proceeding as provided in the section. To be
106 24 eligible to receive the exemption the person claiming it shall
106 25 have recorded in the office of the county recorder of the
106 26 county in which is located the property designated for the
106 27 exemption, evidence of property ownership by that person or
106 28 the family farm corporation of which the person is a
106 29 shareholder and the military certificate of satisfactory
106 30 service, order transferring to inactive status, reserve,
106 31 retirement, order of separation from service, honorable
106 32 discharge or a copy of any of these documents of the person
106 33 claiming or through whom is claimed the exemption. In the
106 34 case of a person claiming the exemption for currently serving
106 35 in the armed forces, the person shall file a statement signed
107 1 by the person's immediate commanding officer.
107 2 The person shall file with the appropriate assessor on
107 3 forms obtained from the assessor the claim for exemption for
107 4 the year for which the person is first claiming the exemption.
107 5 The claim shall be filed not later than July 1 of the year for
107 6 which the person is claiming the exemption. The claim shall
107 7 set out the fact that the person is a resident of and
107 8 domiciled in the state of Iowa, and a person within the terms
107 9 of section 426A.11, and shall give the volume and page on
107 10 which the certificate of satisfactory service, order of
107 11 separation, retirement, furlough to reserve, inactive status,
107 12 or honorable discharge or certified copy thereof is recorded
107 13 in the office of the county recorder, and may include the
107 14 designation of the property from which the exemption is to be
107 15 made, and shall further state that the claimant is the
107 16 equitable or legal owner of the property designated or if the
107 17 property is owned by a family farm corporation, that the
107 18 person is a shareholder of that corporation and that the
107 19 person occupies the property. In the case of a person
107 20 claiming the exemption for currently serving in the armed
107 21 forces, the person shall file a statement signed by the
107 22 person's immediate commanding officer.
107 23 Upon the filing and allowance of the claim, the claim shall
107 24 be allowed to that person for successive years without further
107 25 filing. However, in the case of a person currently serving in
107 26 the armed forces, such person shall file each year to be
107 27 eligible to obtain the exemption. Provided, that
107 28 notwithstanding the filing or having on file a claim for
107 29 exemption, the person or person's spouse is the legal or
107 30 equitable owner of the property on July 1 of the year for
107 31 which the claim is allowed. When the property is sold or
107 32 transferred or the person wishes to designate different
107 33 property for the exemption, a person who wishes to receive the
107 34 exemption shall refile for the exemption. A person who sells
107 35 or transfers property which is designated for the exemption or
108 1 the personal representative of a deceased person who owned
108 2 such property shall provide written notice to the assessor
108 3 that the property is no longer legally or equitably owned by
108 4 the former claimant.
108 5 Sec. 202. Section 427.1, subsection 19, unnumbered
108 6 paragraph 3, Code 2005, is amended to read as follows:
108 7 This exemption shall be limited to the market value, as
108 8 defined in section 441.21, of the pollution=control or
108 9 recycling property. If the pollution=control or recycling
108 10 property is assessed with other property as a unit, this
108 11 exemption shall be limited to the net market value added by
108 12 the pollution=control or recycling property, determined as of
108 13 the assessment date. However, for pollution=control
108 14 exemptions on file as of July 1, 2006, or first applied for on
108 15 or after July 1, 2006, the exemption is limited to one hundred
108 16 thousand dollars of market value.
108 17 Sec. 203. Section 427.9, Code 2005, is amended to read as
108 18 follows:
108 19 427.9 SUSPENSION OF TAXES, ASSESSMENTS, AND RATES OR
108 20 CHARGES, INCLUDING INTEREST, FEES, AND COSTS.
108 21 If a person is a recipient of federal supplementary
108 22 security income or state supplementary assistance, as defined
108 23 in section 249.1, or is a resident of a health care facility,
108 24 as defined by section 135C.1, which is receiving payment from
108 25 the department of human services for the person's care, the
108 26 person shall be deemed to be unable to contribute to the
108 27 public revenue. The director of human services shall notify a
108 28 person receiving such assistance of the tax suspension
108 29 provision and shall provide the person with evidence to
108 30 present to the appropriate county board of supervisors which
108 31 shows the person's eligibility for tax suspension on parcels
108 32 owned, possessed, or upon which the person is paying taxes as
108 33 a purchaser under contract. The board of supervisors so
108 34 notified, without the filing of a petition and statement as
108 35 specified in section 427.8, shall order the county treasurer
109 1 to suspend the collection of all the taxes, special
109 2 assessments, and rates or charges, including interest, fees,
109 3 and costs, assessed against the parcels and remaining unpaid
109 4 by the person or contractually payable by the person, for such
109 5 time as the person remains the owner or contractually
109 6 prospective owner of the parcels, and during the period the
109 7 person receives assistance as described in this section. The
109 8 county board of supervisors shall annually send to the
109 9 department of human services the names and social security
109 10 numbers of persons receiving a tax suspension pursuant to this
109 11 section. The department shall verify the continued
109 12 eligibility for tax suspension of each name on the list and
109 13 shall return the list to the board of supervisors. The
109 14 director of human services shall advise the person that the
109 15 person may apply for an additional property tax credit
109 16 pursuant to sections 425.16 to 425.39 through 425.37 which
109 17 shall be credited against the amount of the taxes suspended.
109 18 Sec. 204. Section 427C.12, unnumbered paragraph 2, Code
109 19 2005, is amended to read as follows:
109 20 The board of supervisors shall designate the county
109 21 conservation board or the assessor who shall inspect the area
109 22 for which an application is filed for a fruit=tree or forest
109 23 reservation tax exemption before the application is accepted.
109 24 Use of aerial photographs may be substituted for on=site
109 25 inspection when appropriate. The application can only be
109 26 accepted if it meets the criteria established by the natural
109 27 resource commission to be a fruit=tree or forest reservation.
109 28 Once the application has been accepted, the area shall
109 29 continue to receive the tax exemption during each year in
109 30 which the area is maintained as a fruit=tree or forest
109 31 reservation without the owner having to refile. If accepted
109 32 by the county, the application for a fruit=tree or forest
109 33 reservation tax exemption shall be stamped approved and the
109 34 assessor shall forward a copy of the application to the
109 35 recorder for recording. Acres in a forest reservation shall
110 1 be exempt from school district levies only.
110 2 PARAGRAPH DIVIDED. If the property is sold or transferred,
110 3 the seller shall notify the buyer that all, or part of, the
110 4 property is in fruit=tree or forest reservation and subject to
110 5 the recapture tax provisions of this section. The tax
110 6 exemption shall continue to be granted for the remainder of
110 7 the eight=year period for fruit=tree reservation and for the
110 8 following years for forest reservation or until the property
110 9 no longer qualifies as a fruit=tree or forest reservation.
110 10 The owner of the fruit=tree or forest reservation shall
110 11 annually certify to the county conservation board or the
110 12 assessor that the area is being maintained with proper fruit=
110 13 tree or forest management, including necessary pruning and
110 14 planting of trees. The area may be inspected each year by the
110 15 county conservation board or the assessor to determine if the
110 16 area is maintained as a fruit=tree or forest reservation. If
110 17 the area is not maintained or is used for economic gain other
110 18 than as a fruit=tree reservation during any year of the eight=
110 19 year exemption period and any year of the following five years
110 20 or as a forest reservation during any year for which the
110 21 exemption is granted and any of the five years following those
110 22 exemption years, the assessor shall assess the property for
110 23 taxation at its fair market value as of January 1 of that year
110 24 and in addition the area shall be subject to a recapture tax.
110 25 However, the area shall not be subject to the recapture tax if
110 26 the owner, including one possessing under a contract of sale,
110 27 and the owner's direct antecedents or descendants have owned
110 28 the area for more than ten years. The In the case of a fruit=
110 29 tree reservation, the tax shall be computed by multiplying the
110 30 consolidated levy for each of those years, if any, of the five
110 31 preceding years for which the area received the exemption for
110 32 fruit=tree or forest reservation times the assessed value of
110 33 the area that would have been taxed but for the tax exemption.
110 34 This In the case of a forest reservation, the tax shall be
110 35 computed by multiplying the school district levy for each of
111 1 those years, if any, of the five preceding years for which the
111 2 area received the exemption for forest reservation times the
111 3 assessed value of the area that would have been taxed but for
111 4 the tax exemption. The tax shall be entered against the
111 5 property on the tax list for the current year and shall
111 6 constitute a lien against the property in the same manner as a
111 7 lien for property taxes. The tax when collected shall be
111 8 apportioned in the manner provided for the apportionment of
111 9 the property taxes for the applicable tax year.
111 10 Sec. 205. Section 441.22, Code 2005, is amended to read as
111 11 follows:
111 12 441.22 FOREST AND FRUIT=TREE RESERVATIONS.
111 13 Forest and fruit=tree reservations fulfilling the
111 14 conditions of sections 427C.1 to 427C.13 shall be exempt from
111 15 taxation, except as otherwise provided in section 427C.12. In
111 16 all other cases where trees are planted upon any tract of
111 17 land, without regard to area, for forest, fruit, shade, or
111 18 ornamental purposes, or for windbreaks, the assessor shall not
111 19 increase the valuation of the property because of such
111 20 improvements.
111 21 Sec. 206. Section 499A.14, Code 2005, is amended to read
111 22 as follows:
111 23 499A.14 TAXATION.
111 24 The real estate shall be taxed in the name of the
111 25 cooperative, and each member of the cooperative shall pay that
111 26 member's proportionate share of the tax in accordance with the
111 27 proration formula set forth in the bylaws, and each member
111 28 occupying an apartment as a residence, if eligible, shall
111 29 receive that member's proportionate homestead tax credit
111 30 exemption and each veteran of the military services of the
111 31 United States identified as such under the laws of the state
111 32 of Iowa or the United States shall receive as a credit an
111 33 exemption that member's veterans tax benefit as prescribed by
111 34 the laws of the state of Iowa.
111 35 Sec. 207. Chapters 425A and 426, Code 2005, are repealed.
112 1 Sec. 208. Sections 425.4, 425.21, 425.24, 425.25, 425.33
112 2 through 425.36, 425.39, 425.40, 426A.1A through 426A.5, and
112 3 435.33, Code 2005, are repealed.
112 4 Sec. 209. EXEMPTIONS NOT CONSIDERED NEWLY ENACTED. The
112 5 homestead property tax exemption, extraordinary homestead
112 6 property tax exemption, and the military property tax
112 7 exemption are not considered newly enacted after January 1,
112 8 1997, for purposes of section 25B.7.
112 9 Sec. 210. CODE EDITOR DIRECTIVE. The Code editor is
112 10 directed to change the term "credit" to "exemption" anywhere
112 11 it occurs in the Code in reference to the homestead credit.
112 12 The Code editor is further directed to change the terms
112 13 "credit" and "credit or reimbursement" to "exemption" anywhere
112 14 those terms occur in the Code in reference to the
112 15 extraordinary property tax credit or reimbursement.
112 16 Sec. 211. EFFECTIVE AND APPLICABILITY DATES.
112 17 1. This division of this Act takes effect January 1, 2006,
112 18 and, except as provided in subsections 2 and 3, applies to
112 19 assessment years beginning on or after that date.
112 20 2. The sections of this Act repealing chapters 425A and
112 21 426, and amending sections in chapters 425 and 426A, apply to
112 22 taxes due and payable in fiscal years beginning on or after
112 23 July 1, 2006.
112 24 3. The section of this Act amending section 427.1,
112 25 subsection 19, applies to exemptions on file or first applied
112 26 for on or after July 1, 2006.
112 27 DIVISION VIII
112 28 INTENT
112 29 Sec. 212. It is the intent of the general assembly to
112 30 adopt and submit for ratification an amendment to the
112 31 Constitution of the State of Iowa requiring that any increase
112 32 in state individual and corporate income tax rates and income
112 33 brackets, state sales and use tax rates, and property tax
112 34 percentage limitations shall be approved by a vote of the
112 35 people before taking effect.
113 1 EXPLANATION
113 2 This bill makes various changes to the law relating to
113 3 state taxes and fees, property taxes, assessment of property,
113 4 city and county budgets funded primarily by property taxes,
113 5 and school district budgets funded primarily by state and
113 6 local taxes.
113 7 Division I rewrites the state individual income tax by
113 8 setting three rates of 4 percent on taxable income of less
113 9 than $30,000; 5 percent on taxable income of $30,000 to
113 10 $50,000; and 6 percent on taxable income in excess of $50,000.
113 11 Most adjustments to federal adjusted gross income are
113 12 eliminated. In arriving at the taxable income, all of the
113 13 itemized deductions allowed for federal tax purposes are
113 14 eliminated. No standard deduction is provided. The deduction
113 15 for federal taxes paid is being eliminated. The present
113 16 personal credit remains the same. The current deduction for
113 17 social security benefits remains but all other pension income
113 18 is exempted. The alternative minimum tax is eliminated. The
113 19 division also retains the present credits that are allowed
113 20 except for the minimum tax credit. The division provides a
113 21 $200 credit for premiums paid for long=term care insurance
113 22 that covers the taxpayer, taxpayer's spouse, dependent, or
113 23 parent or grandparent. The child and dependent care credit is
113 24 limited to $200. A refundable low=income credit of up to $400
113 25 is provided.
113 26 The division takes effect January 1, 2006, for tax years
113 27 beginning on or after that date.
113 28 Division II, relating to sales and use taxes, eliminates
113 29 most exemptions. Drugs, sales to nonprofits, vehicles used in
113 30 interstate commerce, sales to state and local subdivisions,
113 31 and construction materials for projects for state and local
113 32 subdivisions and certain nonprofits are the major exemptions
113 33 that are maintained. The tax on residential utilities is
113 34 reduced to 1 percent with the revenues used for an alternative
113 35 energy incentive program.
114 1 The division takes effect January 1, 2006.
114 2 Division III eliminates the tax on corporate income
114 3 effective with tax years beginning on or after January 1,
114 4 2006.
114 5 Division IV changes the motor vehicle registration fees for
114 6 model year 2006 and newer motor trucks with an unladen weight
114 7 of 7,000 pounds or less, except work trucks, from fixed rate
114 8 fees to fees based on vehicle weight and value. A truck
114 9 currently subject to a flat fee based on combined gross weight
114 10 will continue to be registered for the flat fee.
114 11 The division defines "work truck" and provides that both
114 12 current owners and new owners of work trucks will continue to
114 13 pay the flat fee. An applicant for registration of a work
114 14 truck may be asked to provide proof that the applicant is
114 15 engaged in farming or a business or trade that requires the
114 16 use of a motor truck to qualify for the work truck
114 17 registration rate. A copy of documentation filed by the
114 18 applicant for federal income tax purposes is satisfactory
114 19 evidence that a person is qualified for such registration
114 20 rate. If an owner who has registered a vehicle as a work
114 21 truck is found to be unqualified for the work truck
114 22 registration rate, the owner may be required to pay regular
114 23 registration fees in addition to any other penalties allowed
114 24 by law.
114 25 The division increases the portion of vehicle registration
114 26 fees which may be retained by a county from 4 to 10 percent.
114 27 Division V of the bill makes changes relating to local
114 28 budgets and property taxes. The division provides that if a
114 29 new state mandate is imposed on or after July 1, 2006, which
114 30 requires the performance of a new activity or service or the
114 31 expansion of a service beyond what was required before July 1,
114 32 2006, the state mandate must be fully funded. If the state
114 33 mandate is not fully funded, the affected political
114 34 subdivisions are not required to comply or implement the state
114 35 mandate. Also, no fines or penalties may be imposed on a
115 1 political subdivision for failure to comply or carry out an
115 2 unfunded state mandate.
115 3 The division strikes Code section 25B.2, subsection 3, and
115 4 rewrites it as a new section outside the intent section of
115 5 Code chapter 25B. The rewritten section removes a qualifying
115 6 phrase relating to specification of costs which provides that
115 7 a political subdivision may still be required to carry out an
115 8 unfunded state mandate. The rewritten section also strikes
115 9 the exception for federal mandates and for mandates relating
115 10 to public retirement systems. The rewritten section does not
115 11 include area education agencies and community colleges in the
115 12 definition of "political subdivision".
115 13 The division increases the regular program foundation base
115 14 per pupil from 87.5 percent to 95 percent, beginning with the
115 15 budget year commencing July 1, 2007, to offset the increase in
115 16 school property taxes due to the changed method of assessment.
115 17 The division provides that, beginning with the fiscal year
115 18 beginning July 1, 2007, a school district cannot levy property
115 19 taxes, other than foundation and additional property taxes, in
115 20 excess of .5 percent of the taxable value of residential and
115 21 agricultural property and 1 percent of commercial or
115 22 industrial property. The bill contains transition provisions
115 23 for tax levies for fiscal year 2007=2008, fiscal year 2008=
115 24 2009, and fiscal year 2009=2010. The bill also provides that
115 25 for the fiscal year beginning July 1, 2010, and subsequent
115 26 fiscal years, such school district property taxes by class
115 27 cannot increase by more than the consumer price index for the
115 28 preceding 12 months.
115 29 The division provides that, beginning with the fiscal year
115 30 beginning July 1, 2007, a county cannot levy property taxes in
115 31 excess of the following percentages:
115 32 For residential property, income residential property, and
115 33 agricultural property in the unincorporated area, three=
115 34 fourths of 1 percent of the taxable value.
115 35 For commercial property in the unincorporated area, 2
116 1 percent.
116 2 For industrial property in the unincorporated area, 3
116 3 percent.
116 4 For residential property in the incorporated area, three=
116 5 eighths of 1 percent.
116 6 For agricultural property in the incorporated area, one=
116 7 half of 1 percent.
116 8 For commercial property in the incorporated area, 1
116 9 percent. The 1 percent is lowered for successive years until
116 10 it reaches three=fourths of 1 percent.
116 11 For industrial property in the incorporated area, 1
116 12 percent.
116 13 For income residential property in the incorporated area,
116 14 three=fourths of 1 percent.
116 15 The bill contains transition provisions for tax levies for
116 16 fiscal year 2007=2008, fiscal year 2008=2009, and fiscal year
116 17 2009=2010.
116 18 The division requires that if a county's ending fund
116 19 balance for a budget year exceeds 25 percent of budgeted
116 20 expenditures, the excess over 25 percent must be explicitly
116 21 reserved or designated for a specific purpose. The bill
116 22 applies to ending fund balances in the general and general
116 23 supplemental funds and the rural services and rural services
116 24 supplemental funds. The bill defines "budget year", "current
116 25 fiscal year", and "item".
116 26 The division provides that if the amount of the ending fund
116 27 balance is protested to the state appeal board, the county has
116 28 the burden of proving that the amount over 25 percent is
116 29 reasonably likely to be appropriated for the reserved or
116 30 designated purpose. The limitation applies to fiscal years
116 31 beginning on or after July 1, 2010.
116 32 The division also provides that, beginning with the fiscal
116 33 year beginning July 1, 2007, a city cannot levy property taxes
116 34 in excess of 1 percent of the taxable value of residential
116 35 property and agricultural property, and 2 percent for
117 1 commercial property. The 2 percent is lowered for successive
117 2 years until it reaches 1 and one=half percent. For industrial
117 3 property, 2 percent.
117 4 The bill contains transition provisions for tax levies for
117 5 fiscal year 2007=2008, fiscal year 2008=2009, and fiscal year
117 6 2009=2010.
117 7 The division provides that the revenues from school
117 8 district property taxes imposed in an urban renewal area that
117 9 is utilizing tax increment financing shall not be paid to the
117 10 municipality implementing the urban renewal plan if more than
117 11 10 percent of the property in the urban renewal area is
117 12 assessed as residential, but shall be paid to the school
117 13 district imposing the taxes unless the school district revenue
117 14 is needed to pay indebtedness for the urban renewal area
117 15 incurred before July 1, 2006. The municipality must have
117 16 certified for the school revenue by July 1, 2006. The amount
117 17 certified is to be paid to the municipality by November 1 and
117 18 May 1 following certification.
117 19 The division requires that before tax increment financing
117 20 may be used in an urban renewal area, it must be approved by a
117 21 vote of the people.
117 22 The division increases from 50 percent to 75 percent the
117 23 portion of base year expenditures paid by the state for mental
117 24 health, mental retardation, and developmental disabilities.
117 25 The division removes the square footage tax on mobile homes
117 26 and manufactured homes and replaces it with the ad valorem tax
117 27 imposed on other residences. The bill provides that real
117 28 estate of a mobile home park or land=leased community shall be
117 29 assessed and taxed as improved residential property.
117 30 The division also provides that, beginning with the fiscal
117 31 year beginning July 1, 2010, and subsequent fiscal years, city
117 32 or county property taxes by class cannot increase by more than
117 33 the consumer price index for the preceding 12 months.
117 34 The division lowers the amount of interest that can be
117 35 charged against delinquent property taxes. The interest rate
118 1 is changed from 1 and one=half percent to 1 percent before tax
118 2 sale. The interest rate after the delinquent taxes are sold
118 3 at tax sale is changed from 2 percent to 1 and one=half
118 4 percent.
118 5 The section of the division amending Code section 403.19 on
118 6 tax increment financing takes effect July 1, 2005, and applies
118 7 to taxes due and payable in fiscal years beginning on or after
118 8 July 1, 2006. The sections of the division relating to
118 9 delinquent property tax interest rates take effect July 1,
118 10 2005, and apply to property taxes which become delinquent on
118 11 or after July 1, 2005, and to parcels sold for delinquent
118 12 taxes on or after July 1, 2005. The remainder of the division
118 13 takes effect July 1, 2006, and applies to fiscal years
118 14 beginning on or after July 1, 2007.
118 15 Division VI of the bill, relating to assessment of
118 16 property, removes the property tax assessment limitations on
118 17 residential, commercial, industrial, and agricultural property
118 18 and requires that all such property be valued at its fair
118 19 market value. The bill provides a reduction from actual value
118 20 of 50 percent up to a maximum of $65,000 per farm unit. "Farm
118 21 unit" is defined in the bill. The bill also provides a
118 22 reduction from actual value of 50 percent up to a maximum of
118 23 $20,000 for improved residential property and 50 percent up to
118 24 a maximum of $25,000 for improved commercial and improved
118 25 industrial property. The bill creates a new class of
118 26 property, "income residential", and provides a reduction from
118 27 actual value of 50 percent up to the maximum of $20,000. The
118 28 division provides that the reduction amounts shall be annually
118 29 increased for inflation.
118 30 The division allows counties to share in the employment of
118 31 a county assessor.
118 32 The division makes conforming amendments to sections
118 33 pertaining to valuation of property in an urban renewal area
118 34 and valuation of property owned by telegraph and telephone
118 35 companies, express companies, and electric cooperatives.
119 1 The division also provides that if the assessor is unable
119 2 to establish fair market value of newly constructed
119 3 residential property because of a lack of comparable sales,
119 4 the assessor shall use the replacement cost method to value
119 5 the property.
119 6 The division provides that agricultural land containing an
119 7 animal feeding operation structure shall be assessed as
119 8 agricultural land only if it is owned by a certain type of
119 9 owner and is operated by a person actively engaged in farming.
119 10 "Owner" and "actively engaged in farming" are defined in the
119 11 bill.
119 12 The division provides that agricultural land that is owned
119 13 by a certain type of owner and farmed by a person actively
119 14 engaged in farming shall, upon application of the owner, be
119 15 placed in an agricultural land reserve for purposes of
119 16 assessment and taxation if its assessed value exceeds by 25
119 17 percent the average assessed value for agricultural land in
119 18 the county. Land in an agricultural land reserve shall be
119 19 assessed at an amount equal to the average assessed value per
119 20 acre of agricultural land in the county. "Owner" and
119 21 "actively engaged in farming" are defined in the bill.
119 22 The division provides that attorney fees incurred by a
119 23 property owner or aggrieved taxpayer in an appeal of an
119 24 assessment to district court may be awarded by the court and
119 25 assessed against the board of review or any taxing body
119 26 involved in the appeal unless the court determines that the
119 27 protest of assessment was frivolous and, in that case, the
119 28 court may assess the costs of defending the protest against
119 29 the owner or taxpayer.
119 30 The division increases from three years to six years the
119 31 time period that subdivided property shall be assessed as
119 32 acreage or unimproved property.
119 33 The division takes effect January 1, 2006, and applies to
119 34 assessment years beginning on or after January 1, 2006.
119 35 Division VII of the bill, relating to property tax credits
120 1 and exemptions, strikes the state reimbursement for the
120 2 homestead property tax credit and military property tax credit
120 3 and changes the credits to exemptions from assessed value.
120 4 The homestead exemption amount is increased from $4,850 to
120 5 $5,000. The military exemption amount is increased from
120 6 $1,852 to $2,000. The amount of exemption for veterans of
120 7 World War I is reduced from $2,778 to $2,000. The military
120 8 tax exemption is expanded to all persons currently serving in
120 9 the armed forces of the United States and those honorably
120 10 discharged.
120 11 The division amends provisions relating to the elderly,
120 12 disabled, and low=income property tax credit by making it an
120 13 exemption from assessed value and by eliminating the sliding
120 14 scale for income and exemption amount and replacing it with a
120 15 flat exemption amount of $2,500. Elderly persons, disabled
120 16 persons, and low=income persons all of whom have household
120 17 income of less than $16,500 are eligible for the credit.
120 18 The division directs the Code editor to change "credit" and
120 19 "credit or reimbursement" to "exemption" wherever it occurs in
120 20 the Code in relation to the military tax credit and the
120 21 homestead tax credit. The bill also provides that all three
120 22 exemptions are not considered to be newly enacted for purposes
120 23 of state mandate funding requirements.
120 24 The division limits the pollution=control property tax
120 25 exemption to $100,000 of value.
120 26 The division provides that any land in a forest reservation
120 27 is exempt from school district levies only. The bill requires
120 28 the owner of land in a forest or fruit=tree reservation to
120 29 annually certify that proper management techniques, such as
120 30 pruning and planting, are being followed.
120 31 The division repeals the family farm property tax credit
120 32 and the agricultural land property tax credit. The bill makes
120 33 conforming amendments pertaining to these repeals.
120 34 The sections of the division amending the homestead tax
120 35 credit, the elderly, disabled, and low=income tax credit, and
121 1 the military tax credit and repealing the family farm tax
121 2 credit and the agricultural land tax credit apply to taxes due
121 3 and payable in fiscal years beginning on or after July 1,
121 4 2006. The section of the division limiting the value of
121 5 pollution control that is exempt applies to exemptions on file
121 6 as of July 1, 2006, or first applied for on or after July 1,
121 7 2006. The remainder of the division applies to assessment
121 8 years beginning on or after January 1, 2006.
121 9 Division VIII of the bill states that it is the intent of
121 10 the general assembly to adopt and submit for ratification an
121 11 amendment to the Constitution of the State of Iowa requiring
121 12 that any increase in state individual and corporate income tax
121 13 rates and income brackets, state sales and use tax rates, and
121 14 property tax percentage limitations shall be approved by a
121 15 vote of the people before taking effect.
121 16 LSB 2366SS 81
121 17 sc:rj/cf/24