House File 2634 - Introduced
HOUSE FILE
BY LUKAN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the granting of property tax credits to
2 businesses that voluntarily prohibit smoking in the workplace.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6029HH 82
5 mg/nh/14
PAG LIN
1 1 Section 1. NEW SECTION. 427B.29 VOLUNTARY SMOKEFREE
1 2 COMMERCIAL PROPERTY TAX CREDIT.
1 3 1. Property assessed as commercial property that is used
1 4 and operated for a for=profit or nonprofit business is
1 5 entitled to a property tax credit, as provided in subsection
1 6 2, if the owner or operator of the business voluntarily
1 7 prohibits smoking in all buildings and structures located on
1 8 the property that is used in the operation of the business.
1 9 If the state or a local authority prohibits smoking in the
1 10 workplace, a business affected by this prohibition shall not
1 11 receive the property tax credit under this section beginning
1 12 with the month following the effective date of the state or
1 13 local prohibition.
1 14 2. The amount of the tax credit equals five hundred
1 15 dollars for a calendar year. The credit shall apply to
1 16 property taxes payable in the fiscal year following the
1 17 calendar year. However, if a business does not voluntarily
1 18 prohibit smoking for the entire calendar year or is ineligible
1 19 to receive the tax credit because of the enactment of a state
1 20 or local law prohibiting smoking in the workplace during the
1 21 calendar year, the amount of the tax credit shall be prorated
1 22 and the amount of the credit shall equal the maximum amount of
1 23 the credit for the calendar year, divided by twelve,
1 24 multiplied by the number of months the business is eligible.
1 25 The credit shall be rounded to the nearest ten dollars. If
1 26 the business is eligible during any part of a month, the
1 27 business shall be considered eligible for the entire month.
1 28 3. A business seeking the property tax credit under this
1 29 section shall annually file notice and application to that
1 30 effect in the calendar year for which the tax credit will be
1 31 computed. The notice and application shall be sent to the
1 32 county board of supervisors or the board's designee. The
1 33 board or board's designee shall approve or deny the tax credit
1 34 by March 1 following that calendar year and notify the
1 35 business and the county auditor. In the event of denial, the
2 1 business has thirty days to appeal the denial to the board of
2 2 supervisors or the board's designee. Upon approval, the
2 3 amount of the tax credit shall be apportioned by the county
2 4 treasurer to the several taxing districts. In the case of
2 5 change of ownership, the credit shall follow the title to the
2 6 business property.
2 7 Sec. 2. APPLICABILITY. Section 25B.7 does not apply to
2 8 the property tax credits allowed in this Act.
2 9 EXPLANATION
2 10 This bill allows a business a property tax credit of up to
2 11 $500 for voluntarily banning smoking at its workplace. The
2 12 credit ceases or is not available upon enactment of state or
2 13 local law that prohibits smoking in the workplace. The tax
2 14 credit is based on the number of months in the calendar year
2 15 preceding the fiscal year in which the taxes are payable that
2 16 the business voluntarily prohibits smoking. The business must
2 17 apply annually to the county board of supervisors or the
2 18 board's designee. The provision in the Code that requires the
2 19 state to fully fund new property tax credits and exemptions in
2 20 order that the local jurisdictions must grant such credits or
2 21 exemptions is made inapplicable to the tax credit in the bill.
2 22 LSB 6029HH 82
2 23 mg/nh/14