SF 179 (LSB 1822XS (2) 85)

SENATE FILE 179

BY  HOGG

A BILL FOR

An Act providing for an annual adjustment to the amount of value used to calculate the homestead 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 2013, is amended to read as follows:
   2.
  a.  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 dollars, as adjusted pursuant to paragraph “b”, of actual value for each homestead.
   b.  The amount of actual value specified in paragraph “a” shall be adjusted annually as provided in this paragraph. For each fiscal year beginning on or after July 1, 2013, the amount of actual value used to calculate the homestead credit shall be the amount of actual value used to calculate the homestead credit in the immediately preceding fiscal year multiplied by the annual homestead credit factor.
   c.  For the purposes of this subsection, “annual homestead credit factor” means the percent increase, but not less than zero, in the statewide actual value of residential property for the assessment year applicable to the fiscal year for which the homestead credit is being calculated resulting from the revaluation of existing properties over the statewide actual value of residential property in the preceding assessment year, plus one hundred percent.
    Sec. 2.  APPLICABILITY.  This Act applies to property taxes due and payable in fiscal years beginning on or after July 1, 2013.
EXPLANATION
   Current Code section 425.1 provides that 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 $4,850 of actual value for each homestead.
   This bill provides for an annual adjustment to the amount of actual value used to calculate the homestead credit under Code chapter 425. For each fiscal year beginning on or after July 1, 2013, the bill requires that the amount of actual value used to calculate the homestead credit shall be the amount of actual value used to calculate the homestead credit in the immediately preceding fiscal year multiplied by the annual homestead credit factor. The bill defines “annual homestead credit factor” to mean the percent increase, but not less than zero, in the statewide actual value of residential property for the assessment year applicable to the fiscal year for which the homestead credit is being calculated resulting from the revaluation of existing properties over the statewide actual value of residential property in the preceding assessment year, plus 100 percent.
   The bill applies to property taxes due and payable in fiscal years beginning on or after July 1, 2013.