Senate File 2081 - Introduced SENATE FILE 2081 BY CHELGREN A BILL FOR An Act modifying appropriation amounts for payment of 1 commercial and industrial property tax replacement claims 2 and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5738XS (3) 87 md/jh

S.F. 2081 Section 1. Section 2.48, subsection 3, paragraph f, 1 subparagraph (6), Code 2018, is amended by striking the 2 subparagraph. 3 Sec. 2. Section 441.21A, subsection 1, paragraph a, Code 4 2018, is amended to read as follows: 5 a. For Subject to the limitations of subparagraphs (1), 6 (2), and (3) of this paragraph, for each fiscal year during 7 the period beginning on or after July 1, 2014, and ending June 8 30, 2020, there is appropriated from the general fund of the 9 state to the department of revenue an amount necessary for 10 the payment of all commercial and industrial property tax 11 replacement claims under this section for the fiscal year. 12 However, for a 13 (1) For the fiscal year beginning on or after July 1, 2017, 14 the total amount of moneys appropriated from the general fund 15 of the state to the department of revenue for the payment of 16 commercial and industrial property tax replacement claims in 17 that fiscal year shall not exceed the total amount of money 18 moneys necessary to pay all commercial and industrial property 19 tax replacement claims for the fiscal year beginning July 1, 20 2016. 21 (2) For the fiscal year beginning July 1, 2018, the 22 total amount of moneys appropriated from the general fund of 23 the state to the department of revenue for the payment of 24 commercial and industrial property tax replacement claims in 25 that fiscal year shall not exceed two-thirds of the total 26 amount of moneys necessary to pay all commercial and industrial 27 property tax replacement claims for the fiscal year beginning 28 July 1, 2016. 29 (3) For the fiscal year beginning July 1, 2019, the 30 total amount of moneys appropriated from the general fund of 31 the state to the department of revenue for the payment of 32 commercial and industrial property tax replacement claims 33 in that fiscal year shall not exceed one-third of the total 34 amount of moneys necessary to pay all commercial and industrial 35 -1- LSB 5738XS (3) 87 md/jh 1/ 3

S.F. 2081 property tax replacement claims for the fiscal year beginning 1 July 1, 2016. 2 Sec. 3. Section 441.21A, subsections 2 and 3, Code 2018, are 3 amended to read as follows: 4 2. Beginning with the fiscal year beginning July 1, 2014, 5 and ending with the fiscal year beginning July 1, 2019, each 6 county treasurer shall be paid by the department of revenue an 7 amount equal to the amount of the commercial and industrial 8 property tax replacement claims in the county, as calculated 9 in subsection 4 . If an amount appropriated for a fiscal year 10 is insufficient to pay all replacement claims, the director of 11 revenue shall prorate the payment of replacement claims to the 12 county treasurers and shall notify the county auditors of the 13 pro rata percentage on or before September 30. 14 3. On or before July 1 of each fiscal year beginning on 15 or after July 1, 2014, but before July 1, 2020, the assessor 16 shall report to the county auditor the total actual value of 17 all commercial property and industrial property in the county 18 that is subject to assessment and taxation for the assessment 19 year used to calculate the taxes due and payable in that fiscal 20 year. 21 Sec. 4. Section 441.21A, subsection 4, unnumbered paragraph 22 1, Code 2018, is amended to read as follows: 23 On or before a date established by rule of the department 24 of revenue of each fiscal year beginning on or after July 25 1, 2014, but before July 1, 2020, the county auditor shall 26 prepare a statement, based upon the report received pursuant to 27 subsection 3 , listing for each taxing district in the county: 28 Sec. 5. EFFECTIVE DATE. The following takes effect July 1, 29 2022: 30 The section of this Act amending section 2.48. 31 Sec. 6. EFFECTIVE DATE. The following, being deemed of 32 immediate importance, takes effect upon enactment: 33 The sections of this Act amending section 441.21A. 34 EXPLANATION 35 -2- LSB 5738XS (3) 87 md/jh 2/ 3

S.F. 2081 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 Current Code section 441.21A establishes and appropriates 3 amounts from the general fund of the state for commercial 4 and industrial property tax replacement claims. Such claims 5 are calculated by the department of revenue based on the 6 difference between the actual value and assessed value of all 7 commercial and industrial property in each taxing district 8 in the state. Current law appropriates an amount necessary 9 for the payment of all commercial and industrial property tax 10 replacement claims for each fiscal year beginning on or after 11 July 1, 2014, subject to a maximum total appropriation for 12 fiscal years beginning on or after July 1, 2017, of the total 13 amount necessary for the payment of replacement claims in the 14 fiscal year beginning July 1, 2016. This bill eliminates the 15 appropriation for fiscal years beginning on or after July 1, 16 2020. 17 The bill also establishes maximum total appropriation 18 amounts for the fiscal years beginning July 1, 2018, and July 19 1, 2019. The appropriation for the fiscal year beginning July 20 1, 2018, shall not exceed two-thirds of the total amount of 21 moneys necessary to pay all commercial and industrial property 22 tax replacement claims for the fiscal year beginning July 1, 23 2016. The appropriation for the fiscal year beginning July 1, 24 2019, shall not exceed one-third of the total amount of moneys 25 necessary to pay all commercial and industrial property tax 26 replacement claims for the fiscal year beginning July 1, 2016. 27 Under current law, the legislative tax expenditure committee 28 established under Code section 2.48 is required to review 29 the commercial and industrial property tax replacement claim 30 expenditures. The bill eliminates that required periodic 31 review effective July 1, 2022. 32 Except for the Code section of the bill amending Code section 33 2.48, the bill takes effect upon enactment. 34 -3- LSB 5738XS (3) 87 md/jh 3/ 3