Senate File 2228 - Introduced
SENATE FILE
BY STEWART, BEALL, BOLKCOM,
RAGAN, DVORSKY, DANIELSON,
KREIMAN, HATCH, DOTZLER,
WARNSTADT, HORN, SENG,
HANCOCK, WOOD, SCHOENJAHN,
FRAISE, COURTNEY, QUIRMBACH,
BLACK, GRONSTAL, and KIBBIE
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act to provide for additional state reimbursement for military
2 service property tax credit and exemption claims and including
3 effective and applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5991XS 81
6 mg/je/5
PAG LIN
1 1 Section 1. Section 25B.7, subsection 2, paragraph c, Code
1 2 2005, is amended to read as follows:
1 3 c. Military service property tax credit and exemption
1 4 pursuant to chapter 426A, to the extent of six dollars and
1 5 ninety=two cents per thousand dollars of assessed value of the
1 6 exempt property.
1 7 Sec. 2. Section 426A.2, Code 2005, is amended to read as
1 8 follows:
1 9 426A.2 MILITARY SERVICE TAX CREDIT.
1 10 The moneys shall be apportioned each year so as to replace
1 11 all or a portion of the tax which would be due on property
1 12 eligible for military service tax exemption in the state, if
1 13 the property were subject to taxation, the amount of the
1 14 credit to be not more than six dollars and ninety=two cents
1 15 per thousand dollars of assessed value of property which would
1 16 be subject to the tax, except for the military service tax
1 17 exemption.
1 18 Sec. 3. Section 426A.5, Code 2005, is amended to read as
1 19 follows:
1 20 426A.5 PROPORTIONATE SHARES TO DISTRICTS.
1 21 The amount of credits received under this chapter shall
1 22 then be apportioned by each county treasurer to the several
1 23 taxing districts in the same manner as though the amount of
1 24 the credit had been paid by the owner of the property
1 25 receiving the credit. Each taxing district shall receive its
1 26 proportionate share of the military service tax credit allowed
1 27 on each and every tax exemption allowed in such the taxing
1 28 district, in the proportion that the levy made by such taxing
1 29 district upon general property bears to the total levy upon
1 30 all property subject to general property taxation by all
1 31 taxing districts imposing a general property tax in such
1 32 taxing district based upon the amount of property taxes which
1 33 would be due on the property receiving the credit, if the
1 34 property were subject to taxation.
1 35 Sec. 4. EFFECTIVE AND APPLICABILITY DATE. This Act, being
2 1 deemed of immediate importance, takes effect upon enactment
2 2 and applies to the military service property tax exemption
2 3 allowed for property taxes due and payable during fiscal years
2 4 beginning on or after July 1, 2006.
2 5 EXPLANATION
2 6 Under present law, the state will reimburse local
2 7 governments for the lost tax revenue resulting from the
2 8 military service tax exemption. However, the amount of
2 9 reimbursement is limited to $6.92 per $1,000 of the assessed
2 10 value of the exemption. Since the consolidated levies
2 11 throughout the state exceed $6.92 per $1,000 of the assessed
2 12 value, the local governments are not reimbursed for all the
2 13 lost property tax revenue. This bill increases the amount of
2 14 the reimbursement to equal the full amount of the property
2 15 taxes lost by local governments as a result of the military
2 16 service tax exemption.
2 17 The bill takes effect upon enactment and applies to taxes
2 18 due and payable during fiscal years beginning on or after July
2 19 1, 2006.
2 20 LSB 5991XS 81
2 21 mg:rj/je/5