HSB 646 (LSB 5041YC (2) 85)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS)

A BILL FOR

An Act increasing the amount of the homestead property tax credit and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 425.1, subsection 2, Code 2014, is amended to read as follows:
   2.  The homestead credit fund shall be apportioned each year so as to give a credit against the tax on each eligible homestead in the state in an amount equal to the actual levy on the first four thousand eight hundred fifty nine thousand seven hundred dollars of actual value for each homestead.
    Sec. 2.  APPLICABILITY.  This Act applies to property taxes due and payable in fiscal years beginning on or after July 1, 2014.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Current Code section 425.1 provides that the homestead credit fund shall be apportioned each year so as to give a credit against the property tax on each eligible homestead in the state in an amount equal to the actual levy on the first $4,850 of actual value for each homestead. This bill increases the amount of credit so as to give a credit in an amount equal to the actual levy on the first $9,700 of actual value for each homestead.
   Code section 25B.7 provides that if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation. The requirement for fully funding and the consequences of not fully funding under Code section 25B.7 apply to the homestead property tax credit.
   The bill applies to property taxes due and payable in fiscal years beginning on or after July 1, 2014.