H.F. 2304 Section 1. Section 425.23, subsection 1, paragraph a, Code 1 2014, is amended by striking the paragraph and inserting in 2 lieu thereof the following: 3 a. (1) The tentative credit or reimbursement for a claimant 4 described in section 425.17, subsection 2, paragraph “a” , 5 subparagraph (1), that is a single-person household, shall be 6 determined in accordance with the following schedule: 7 Percent of property taxes 8 due or rent constituting 9 property taxes paid 10 If the household allowed as a credit or 11 income is: reimbursement: 12 $ 0 —— 26,499.99 ........ 100% 13 26,500 —— 27,999.99 ........ 85 14 28,000 —— 29,499.99 ........ 70 15 29,500 —— 30,499.99 ........ 55 16 30,500 —— 31,999.99 ........ 40 17 32,000 —— 33,499.99 ........ 25 18 (2) The tentative credit or reimbursement for a claimant 19 described in section 425.17, subsection 2, paragraph “a” , 20 subparagraph (1), that is part of a household consisting of 21 the claimant and the claimant’s spouse, shall be determined in 22 accordance with the following schedule: 23 Percent of property taxes 24 due or rent constituting 25 property taxes paid 26 If the household allowed as a credit or 27 income is: reimbursement: 28 $ 0 —— 30,999.99 ........ 100% 29 31,000 —— 32,699.99 ........ 85 30 32,700 —— 34,499.99 ........ 70 31 34,500 —— 35,999.99 ........ 55 32 36,000 —— 37,699.99 ........ 40 33 37,700 —— 39,499.99 ........ 25 34 Sec. 2. Section 425.23, subsection 1, paragraph b, 35 -1- LSB 5262YH (4) 85 md/sc 1/ 8

H.F. 2304 subparagraphs (1) and (2), Code 2014, are amended by striking 1 the subparagraphs and inserting in lieu thereof the following: 2 (1) (a) If the amount appropriated under section 425.40 3 plus any supplemental appropriation made for a fiscal year 4 for purposes of this paragraph “b” is at least twenty-seven 5 million dollars, the tentative credit or reimbursement for a 6 claimant that is a single-person household shall be determined 7 in accordance with the following schedule: 8 Percent of property taxes 9 due or rent constituting 10 property taxes paid 11 If the household allowed as a credit or 12 income is: reimbursement: 13 $ 0 —— 26,499.99 ........ 100% 14 26,500 —— 27,999.99 ........ 85 15 28,000 —— 29,499.99 ........ 70 16 29,500 —— 30,499.99 ........ 55 17 30,500 —— 31,999.99 ........ 40 18 32,000 —— 33,499.99 ........ 25 19 (b) If the amount appropriated under section 425.40 plus 20 any supplemental appropriation made for a fiscal year for 21 purposes of this paragraph “b” is at least twenty-seven million 22 dollars, the tentative credit or reimbursement for a claimant 23 that is part of a household consisting of the claimant and the 24 claimant’s spouse shall be determined in accordance with the 25 following schedule: 26 Percent of property taxes 27 due or rent constituting 28 property taxes paid 29 If the household allowed as a credit or 30 income is: reimbursement: 31 $ 0 —— 30,999.99 ........ 100% 32 31,000 —— 32,699.99 ........ 85 33 32,700 —— 34,499.99 ........ 70 34 34,500 —— 35,999.99 ........ 55 35 -2- LSB 5262YH (4) 85 md/sc 2/ 8

H.F. 2304 36,000 —— 37,699.99 ........ 40 1 37,700 —— 39,499.99 ........ 25 2 (2) (a) If the amount appropriated under section 425.40 3 plus any supplemental appropriation made for a fiscal year 4 for purposes of this paragraph “b” is less than twenty-seven 5 million dollars, the tentative credit or reimbursement for a 6 claimant that is a single-person household shall be determined 7 in accordance with the following schedule: 8 Percent of property taxes 9 due or rent constituting 10 property taxes paid 11 If the household allowed as a credit or 12 income is: reimbursement: 13 $ 0 —— 26,499.99 ........ 50% 14 26,500 —— 27,999.99 ........ 42 15 28,000 —— 29,499.99 ........ 35 16 29,500 —— 30,499.99 ........ 27 17 30,500 —— 31,999.99 ........ 20 18 32,000 —— 33,499.99 ........ 12 19 (b) If the amount appropriated under section 425.40 plus any 20 supplemental appropriation made for a fiscal year for purposes 21 of this lettered paragraph is less than twenty-seven million 22 dollars, the tentative credit or reimbursement for a claimant 23 that is part of a household consisting of the claimant and the 24 claimant’s spouse shall be determined in accordance with the 25 following schedule: 26 Percent of property taxes 27 due or rent constituting 28 property taxes paid 29 If the household allowed as a credit or 30 income is: reimbursement: 31 $ 0 —— 30,999.99 ........ 50% 32 31,000 —— 32,699.99 ........ 42 33 32,700 —— 34,499.99 ........ 35 34 34,500 —— 35,999.99 ........ 27 35 -3- LSB 5262YH (4) 85 md/sc 3/ 8

H.F. 2304 36,000 —— 37,699.99 ........ 20 1 37,700 —— 39,499.99 ........ 12 2 Sec. 3. Section 425.23, subsection 3, paragraph a, Code 3 2014, is amended to read as follows: 4 a. In addition to a claim for property taxes due, claimants 5 who have an unpaid special assessment levied against the 6 homestead may be eligible for a special assessment credit. 7 A person who is eligible to file a claim as a single-person 8 household for credit for property taxes due , and who has a 9 household income of eight thousand five hundred dollars or 10 less than twenty-six thousand five hundred dollars, and who 11 has an unpaid special assessment levied against the homestead 12 may file a claim for a special assessment credit with the 13 county treasurer. A person who is eligible to file a claim 14 for the person and the person’s spouse for credit for property 15 taxes due, who has a household income of less than thirty-one 16 thousand dollars, and who has an unpaid special assessment 17 levied against the homestead may file a claim for a special 18 assessment credit with the county treasurer. The department 19 shall provide to the respective treasurers the forms necessary 20 for the administration of this subsection . The claim shall 21 be filed not later than September 30 of each year. Upon the 22 filing of the claim, interest for late payment shall not accrue 23 against the amount of the unpaid special assessment due and 24 payable. The claim filed by the claimant constitutes a claim 25 for credit of an amount equal to the actual amount due upon the 26 unpaid special assessment, plus interest, payable during the 27 fiscal year for which the claim is filed against the homestead 28 of the claimant. However, where if the claimant is an 29 individual described in section 425.17, subsection 2 , paragraph 30 “a” , subparagraph (2), who is claiming as a single-person 31 household, who has a household income of less than twenty-six 32 thousand five hundred dollars, and the tentative credit is 33 determined according to the schedule in subsection 1 , paragraph 34 “b” , subparagraph (2), of this section , the claim filed 35 -4- LSB 5262YH (4) 85 md/sc 4/ 8

H.F. 2304 constitutes a claim for credit of an amount equal to one-half 1 of the actual amount due and payable during the fiscal year. 2 If the claimant is an individual described in section 425.17, 3 subsection 2, paragraph “a” , subparagraph (2), who is claiming 4 on behalf of the individual and the individual’s spouse, 5 who has a household income of less than thirty-one thousand 6 dollars, and the tentative credit is determined according to 7 the schedule in subsection 1, paragraph “b” , subparagraph (2), 8 of this section, the claim filed constitutes a claim for credit 9 of an amount equal to one-half of the actual amount due and 10 payable during the fiscal year. The treasurer shall certify to 11 the director of revenue not later than October 15 of each year 12 the total amount of dollars due for claims allowed. The amount 13 of reimbursement due each county shall be certified by the 14 director of revenue and paid by the director of the department 15 of administrative services by November 15 of each year, drawn 16 upon warrants payable to the respective treasurer. There is 17 appropriated annually from the general fund of the state to the 18 department of revenue an amount sufficient to carry out the 19 provisions of this subsection . The treasurer shall credit any 20 moneys received from the department against the amount of the 21 unpaid special assessment due and payable on the homestead of 22 the claimant. 23 Sec. 4. Section 425.23, subsection 4, Code 2014, is amended 24 to read as follows: 25 4. a. For the base year beginning in the 1999 2015 calendar 26 year and for each subsequent base year, the dollar amounts 27 set forth in subsections 1 and 3 shall be multiplied by the 28 cumulative adjustment factor for that base year. “Cumulative 29 adjustment factor” means the product of the annual adjustment 30 factor for the 1998 2014 base year and all annual adjustment 31 factors for subsequent base years. The cumulative adjustment 32 factor applies to the base year beginning in the calendar 33 year for which the latest annual adjustment factor has been 34 determined. 35 -5- LSB 5262YH (4) 85 md/sc 5/ 8

H.F. 2304 b. The annual adjustment factor for the 1998 2014 base year 1 is one hundred percent. For each subsequent base year, the 2 annual adjustment factor equals the annual inflation factor for 3 the calendar year, in which the base year begins, as computed 4 in section 422.4 for purposes of the individual income tax. 5 Sec. 5. Section 435.22, subsection 1, paragraph b, 6 subparagraph (3), Code 2014, is amended to read as follows: 7 (3) Beginning with the 1998 base year, the income dollar 8 amounts set forth in this paragraph “b” shall be multiplied 9 by the cumulative adjustment factor for that base year as 10 determined in section 425.23, subsection 4 . “Cumulative 11 adjustment factor” means the product of the annual adjustment 12 factor for the 1998 base year and all annual adjustment factors 13 for subsequent base years. The cumulative adjustment factor 14 applies to the base year beginning in the calendar year for 15 which the latest annual adjustment factor has been determined. 16 The annual adjustment factor for the 1998 base year is one 17 hundred percent. For each subsequent base year, the annual 18 adjustment factor equals the annual inflation factor for the 19 calendar year, in which the base year begins, as computed in 20 section 422.4 for purposes of the individual income tax. 21 Sec. 6. APPLICABILITY. This Act applies to claims for 22 credit under chapter 425, division II, for property taxes due 23 and payable in fiscal years beginning on or after July 1, 2015, 24 and to claims for reimbursement for rent constituting property 25 taxes paid under chapter 425, division II, for base years 26 beginning on or after January 1, 2014. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 Current Code chapter 425 provides a property tax credit 31 for certain elderly and disabled persons in addition to the 32 homestead property tax credit. Current Code section 425.23 33 provides a credit amount schedule based on specified income 34 limitations. The amount of the credit is a percentage of 35 -6- LSB 5262YH (4) 85 md/sc 6/ 8

H.F. 2304 property taxes paid or rent constituting property taxes paid 1 ranging from 25 percent to 100 percent determined by income 2 thresholds ranging from $0 to $16,499.99. Since 1999, those 3 income thresholds have been indexed for inflation. 4 This bill establishes new elderly and disabled credit amount 5 schedules for claimants based in part on whether they are a 6 single-person household or married. In addition, the bill 7 increases the income thresholds for the credit amounts. For 8 a claimant who is a single-person household, the credit is a 9 percentage of property taxes paid or rent constituting property 10 taxes paid ranging from 25 percent to 100 percent determined by 11 income thresholds ranging from $0 to $33,499.99. For claimants 12 who are married, the credit is a percentage of property taxes 13 paid or rent constituting property taxes paid ranging from 25 14 percent to 100 percent determined by income thresholds ranging 15 from $0 to $39,499.99. 16 Current Code chapter 425 also establishes a similar property 17 tax credit or reimbursement for rent constituting property 18 taxes paid for persons who are 23 years or older or who are 19 a head of household, but who have not attained the age of 65 20 or incurred the requisite disability status. The provision 21 of these credits is triggered by an appropriation to and 22 payment from the low-income tax credit and reimbursement fund 23 established in Code section 425.40. An appropriation to this 24 fund has not occurred since the fund’s creation. 25 The bill makes similar changes to the credit schedules and 26 eligibility for the credits and reimbursement specified by law 27 to be paid from the low-income tax credit and reimbursement 28 fund under Code section 425.40. 29 The bill provides for an inflationary adjustment to the new 30 income threshold amounts established in the bill. 31 As a result of modifying the income threshold amounts, the 32 bill makes corresponding changes to the income limitation 33 eligibility for filing a claim for a special assessment credit 34 under Code section 425.23(3). 35 -7- LSB 5262YH (4) 85 md/sc 7/ 8