HF 2091 (LSB 5491YH (4) 89)

HOUSE FILE 2091

BY  BUSH

A BILL FOR

An Act authorizing a property tax refund for certain taxpayers with children enrolled in a nonpublic school and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  445.58  School district property tax refund.
   1.  As used in this section, unless the context otherwise requires:
   a.  “Full-time” means enrolled in the nonpublic school’s primary instructional curriculum and not counted in the enrollment of a public school district under section 257.6 or otherwise receiving instruction or services from a public school.
   b.  “Nonpublic school” means the same as defined in section 280.2.
   c.  “Owner” means an individual who owns the real property or one or more individuals of the same household who own or control a majority interest in the business entity, as defined in section 501A.102, that owns the real property.
   d.  “Real property” means property subject to taxes defined in section 445.1, including property taxed as real property under section 427A.1.
   e.  “School district property taxes” means ad valorem property taxes imposed by the school district in which the real property in this state is located, but exclusive of delinquent interest due on the real property.
   2.  For property taxes due and payable in fiscal years beginning on or after July 1, 2023, the owner of real property who has one or more children residing primarily with the owner who are enrolled full-time in a nonpublic school shall be eligible for a refund of school district property taxes paid on the owner’s real property that were due and payable during the fiscal year that corresponds to the school year of enrollment and which were paid by the owner or the owner’s business entity, as applicable.
   3.  An owner who wishes to receive a refund of school district property taxes allowed under this section shall obtain the appropriate forms for filing for the refund from the county treasurer. The owner claiming the refund shall file a refund request with the county treasurer that includes identification of the qualifying real property and certification of the dates of enrollment for each student for which the owner is a parent or guardian for the applicable school year. Refund claims must be filed annually by the owner.
   4.  A claim for a refund of school district property taxes paid shall not be allowed unless the claim is filed by the owner with the county treasurer between April 1 and May 1, both dates inclusive, of the fiscal year during which the property taxes are due and payable. The county treasurer shall certify to the department of management on or before May 15 of each year the total amount of refunds due for claims allowed.
   5.  a.  The amount of the refund shall be the total amount of school district property taxes paid by the owner or the owner’s business entity, as applicable, during the applicable fiscal year. If, however, none of the owner’s children were enrolled full-time in a nonpublic school for at least one-half of the nonpublic school’s instructional calendar year, the amount of the refund shall be one-half of the total amount of school district property taxes paid by the owner or the owner’s business entity, as applicable.
   b.  Only one refund per household or business entity per fiscal year shall be allowed under this section.
   c.  The amount of any claim for refund under this section shall, if applicable, first be applied by the county treasurer against any tax liability of the owner or the owner’s business entity, as applicable.
   d.  Upon certification by the county treasurer, each public school district shall send to the county treasurer an amount from the school district’s general fund or other fund of the school district to the county treasurer to pay all approved refund requests.
   e.  A refund for school district property taxes paid by an owner’s business entity shall be paid to the business entity.
   6.  A claimant for a refund shall expressly waive any right to confidentiality relating to school enrollment information submitted in support of the claim or obtainable by the county treasurer.
   7.  A person who makes a false claim for the purpose of obtaining a refund provided for in this section or who knowingly receives the refund without being legally entitled to it is guilty of a fraudulent practice. The claim for refund shall be disallowed in full and if the refund has been paid, the amount shall be recovered in the manner provided in section 425.27.
   8.  Refunds issued under this section shall not modify a school district’s authorized budget under section 257.7 or other provision of law and shall not result in an adjustment to state aid received by the school district.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill establishes a property tax refund for certain real property owners with children enrolled in a nonpublic school. For property taxes due and payable in fiscal years beginning on or after July 1, 2023, the owner of real property who has one or more children residing primarily with the owner who are enrolled full-time in a nonpublic school shall be eligible for a refund of school district property taxes paid on the owner’s real property or the real property owned by a business entity for which the individual owns or controls a majority interest that were due and payable during the fiscal year that corresponds to the school year of enrollment.
   An owner claiming the refund shall file a refund request with the county treasurer that includes identification of the qualifying real property and certification of the dates of enrollment for each student for which the owner is a parent or guardian for the applicable school year. Refund claims must be filed annually by the owner. A claim for a refund of school district property taxes paid shall not be allowed unless the claim is filed by the owner with the county treasurer between April 1 and May 1 of the fiscal year during which the property taxes are due and payable.
   The amount of the refund shall be the total amount of school, district property taxes paid by the owner or the owner’s business entity, as applicable, during the applicable fiscal year. If, however, none of the owner’s children were enrolled full-time in a nonpublic school for at least one-half of the nonpublic school’s instructional calendar year, the amount of the refund shall be one-half of the total amount of school district property taxes paid by the owner or the owner’s business entity, as applicable. A refund for school district property taxes paid by an owner’s business entity shall be paid to the business entity. 
   The amount of any claim for refund shall, if applicable, first be applied by the county treasurer against any tax liability of the owner or the owner’s business entity, as applicable. A claimant shall expressly waive any right to confidentiality relating to school enrollment information submitted in support of the claim or obtainable by the county treasurer.
   A person who makes a false claim for the purpose of obtaining a refund or who knowingly receives the refund without being legally entitled to it is guilty of a fraudulent practice.
   The bill provides that refunds issued shall not modify a school district’s authorized budget and shall not result in an adjustment to state aid received by the school district.