Senate File 2294 - Introduced



                                       SENATE FILE       
                                       BY  KETTERING


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the maximum amount of property taxes due or
  2    rent constituting property taxes paid that may be considered
  3    in calculating the elderly and disabled property tax credit or
  4    rent reimbursement and including an applicability date
  5    provision.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 425.24, Code 2007, is amended to read
  1  2 as follows:
  1  3    425.24  MAXIMUM PROPERTY TAX FOR PURPOSE OF CREDIT OR
  1  4 REIMBURSEMENT.
  1  5    1.  In any case in which property taxes due or rent
  1  6 constituting property taxes paid for any household exceeds one
  1  7 thousand five hundred dollars, the amount of property taxes
  1  8 due or rent constituting property taxes paid shall be deemed
  1  9 to have been one thousand five hundred dollars for purposes of
  1 10 this division.
  1 11    2.  a.  For the base year beginning in the 2010 calendar
  1 12 year and for each subsequent base year, the maximum dollar
  1 13 amount set forth in subsection 1 shall be multiplied by the
  1 14 cumulative adjustment factor for that base year.  "Cumulative
  1 15 adjustment factor" means the product of the annual adjustment
  1 16 factor for the 2009 base year and all annual adjustment
  1 17 factors for subsequent base years.  The cumulative adjustment
  1 18 factor applies to the base year beginning in the calendar year
  1 19 for which the latest annual adjustment factor has been
  1 20 determined.
  1 21    b.  The annual adjustment factor for the 2009 base year is
  1 22 one hundred percent.  For each subsequent base year, the
  1 23 annual adjustment factor equals the annual inflation factor
  1 24 for the calendar year in which the base year begins, as
  1 25 computed in section 422.4 for purposes of the individual
  1 26 income tax.
  1 27    Sec. 2.  Section 25B.7 does not apply to the provisions of
  1 28 this Act.
  1 29    Sec. 3.  APPLICABILITY DATE.  This Act applies to claims
  1 30 for credit for property taxes due and claims for rent
  1 31 constituting property taxes paid that are filed on or after
  1 32 January 1, 2009.
  1 33                           EXPLANATION
  1 34    This bill increases from $1,000 to $1,500 the maximum
  1 35 amount of property taxes due or rent constituting property
  2  1 taxes paid that may be considered in calculating the elderly
  2  2 and disabled property tax credit or rent reimbursement.  The
  2  3 bill provides for the adjustment of the $1,500 maximum amount
  2  4 by an inflation factor that is based on the inflation factor
  2  5 used for the rate schedule under the individual income tax.
  2  6    The bill applies to claims filed on or after July 1, 2009.
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