H.F. _____ Section 1. Section 425.1, subsection 2, Code 2014, is 1 amended to read as follows: 2 2. The homestead credit fund shall be apportioned each 3 year so as to give a credit against the tax on each eligible 4 homestead in the state in an amount equal to the actual levy on 5 the first four thousand eight hundred fifty nine thousand seven 6 hundred dollars of actual value for each homestead. 7 Sec. 2. APPLICABILITY. This Act applies to property taxes 8 due and payable in fiscal years beginning on or after July 1, 9 2014. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 Current Code section 425.1 provides that the homestead 14 credit fund shall be apportioned each year so as to give a 15 credit against the property tax on each eligible homestead in 16 the state in an amount equal to the actual levy on the first 17 $4,850 of actual value for each homestead. This bill increases 18 the amount of credit so as to give a credit in an amount equal 19 to the actual levy on the first $9,700 of actual value for each 20 homestead. 21 Code section 25B.7 provides that if a state appropriation 22 made to fund the credit or exemption is not sufficient to fully 23 fund the credit or exemption, the political subdivision shall 24 be required to extend to the taxpayer only that portion of the 25 credit or exemption estimated by the department of revenue to 26 be funded by the state appropriation. The requirement for 27 fully funding and the consequences of not fully funding under 28 Code section 25B.7 apply to the homestead property tax credit. 29 The bill applies to property taxes due and payable in fiscal 30 years beginning on or after July 1, 2014. 31 -1- LSB 5041YC (2) 85 md/sc 1/ 1