Bill Text: IA SF295 | 2013-2014 | 85th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to state and local finances by establishing a business property tax credit for commercial, industrial, and railway property, establishing and modifying property assessment limitations, providing for commercial and industrial property tax replacement payments, providing for the classification of multiresidential property, modifying provisions for the taxation of telecommunications company property, providing for the study of the taxation of telecommunications company property, providing a taxpayers trust fund tax credit, modifying provisions relating to the property assessment appeal board, modifying the amount of the earned income tax credit, making appropriations, providing penalties, and including effective date, implementation, retroactive applicability, and other applicability provisions. (Formerly SSB 1135.) Various effective dates; see sections 22, 30, 38, 45, and 64 of bill.
Spectrum: Committee Bill
Status: (Passed) 2013-12-31 - END OF 2013 ACTIONS [SF295 Detail]
Download: Iowa-2013-SF295-Introduced.html
Bill Title: A bill for an act relating to state and local finances by establishing a business property tax credit for commercial, industrial, and railway property, establishing and modifying property assessment limitations, providing for commercial and industrial property tax replacement payments, providing for the classification of multiresidential property, modifying provisions for the taxation of telecommunications company property, providing for the study of the taxation of telecommunications company property, providing a taxpayers trust fund tax credit, modifying provisions relating to the property assessment appeal board, modifying the amount of the earned income tax credit, making appropriations, providing penalties, and including effective date, implementation, retroactive applicability, and other applicability provisions. (Formerly SSB 1135.) Various effective dates; see sections 22, 30, 38, 45, and 64 of bill.
Spectrum: Committee Bill
Status: (Passed) 2013-12-31 - END OF 2013 ACTIONS [SF295 Detail]
Download: Iowa-2013-SF295-Introduced.html
Senate
File
295
-
Introduced
SENATE
FILE
295
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
1135)
A
BILL
FOR
An
Act
establishing
a
property
tax
credit
for
commercial,
1
industrial,
and
railway
property,
providing
penalties,
2
making
appropriations,
and
including
implementation
and
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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295
Section
1.
Section
331.512,
Code
2013,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
4A.
Carry
out
duties
relating
to
the
3
business
property
tax
credit
as
provided
in
chapter
426C.
4
Sec.
2.
Section
331.559,
Code
2013,
is
amended
by
adding
the
5
following
new
subsection:
6
NEW
SUBSECTION
.
14A.
Carry
out
duties
relating
to
the
7
business
property
tax
credit
as
provided
in
chapter
426C.
8
Sec.
3.
NEW
SECTION
.
426C.1
Definitions.
9
For
the
purposes
of
this
chapter,
unless
the
context
10
otherwise
requires:
11
1.
“Contiguous
parcels”
means
any
of
the
following:
12
a.
Parcels
that
share
a
common
boundary.
13
b.
Parcels
within
the
same
building
or
structure
regardless
14
of
whether
the
parcels
share
a
common
boundary.
15
c.
Permanent
improvements
to
the
land
that
are
situated
16
on
one
or
more
parcels
of
land
that
are
assessed
and
taxed
17
separately
from
the
permanent
improvements
if
the
parcels
of
18
land
upon
which
the
permanent
improvements
are
situated
share
19
a
common
boundary.
20
2.
“Department”
means
the
department
of
revenue.
21
3.
“Fund”
means
the
business
property
tax
credit
fund
22
created
in
section
426C.2.
23
4.
“Parcel”
means
as
defined
in
section
445.1.
24
5.
“Property
unit”
means
contiguous
parcels
all
of
which
25
are
located
within
the
same
county,
with
the
same
property
tax
26
classification,
are
owned
by
the
same
person,
and
are
operated
27
by
that
person
for
a
common
use
and
purpose.
28
Sec.
4.
NEW
SECTION
.
426C.2
Business
property
tax
credit
29
fund
——
appropriation.
30
1.
A
business
property
tax
credit
fund
is
created
in
the
31
state
treasury
under
the
authority
of
the
department.
For
the
32
fiscal
year
beginning
July
1,
2014,
there
is
appropriated
from
33
the
general
fund
of
the
state
to
the
department
to
be
credited
34
to
the
fund,
the
sum
of
fifty
million
dollars
to
be
used
for
35
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business
property
tax
credits
authorized
in
this
chapter.
1
For
the
fiscal
year
beginning
July
1,
2015,
and
each
fiscal
2
year
thereafter,
there
is
appropriated
from
the
general
fund
3
of
the
state
to
the
department
to
be
credited
to
the
fund
an
4
amount
equal
to
the
total
amount
appropriated
by
the
general
5
assembly
to
the
fund,
as
calculated
in
this
subsection,
in
the
6
previous
fiscal
year.
In
addition,
the
sum
of
fifty
million
7
dollars
shall
be
added
to
the
appropriation
in
each
fiscal
year
8
beginning
on
or
after
July
1,
2015,
if
the
revenue
estimating
9
conference
certifies
during
its
final
meeting
of
the
calendar
10
year
ending
prior
to
the
beginning
of
the
fiscal
year
that
11
the
total
amount
of
general
fund
revenues
collected
during
12
the
fiscal
year
ending
during
such
calendar
year
was
at
least
13
one
hundred
four
percent
of
the
total
amount
of
general
fund
14
revenues
collected
during
the
previous
fiscal
year.
However,
15
the
total
appropriation
to
the
fund
shall
not
exceed
two
16
hundred
fifty
million
dollars
for
any
one
fiscal
year.
17
2.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
18
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
19
the
fund.
Moneys
in
the
fund
are
not
subject
to
the
provisions
20
of
section
8.33
and
shall
not
be
transferred,
used,
obligated,
21
appropriated,
or
otherwise
encumbered
except
as
provided
in
22
this
chapter.
23
Sec.
5.
NEW
SECTION
.
426C.3
Claims
for
credit.
24
1.
Each
person
who
wishes
to
claim
the
credit
allowed
25
under
this
chapter
shall
obtain
the
appropriate
forms
from
the
26
assessor
and
file
the
claim
with
the
assessor.
The
director
27
of
revenue
shall
prescribe
suitable
forms
and
instructions
for
28
such
claims,
and
make
such
forms
and
instructions
available
to
29
the
assessors.
30
2.
a.
Claims
for
the
business
property
tax
credit
shall
be
31
filed
not
later
than
March
15
preceding
the
fiscal
year
during
32
which
the
taxes
for
which
the
credit
is
claimed
are
due
and
33
payable.
34
b.
A
claim
for
credit
filed
after
the
deadline
for
filing
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claims
shall
be
considered
as
a
claim
for
the
following
year.
1
3.
Upon
the
filing
of
a
claim
and
allowance
of
the
credit,
2
the
credit
shall
be
allowed
on
the
parcel
or
property
unit
for
3
successive
years
without
further
filing
as
long
as
the
parcel
4
or
property
unit
satisfies
the
requirements
for
the
credit.
If
5
the
parcel
or
property
unit
ceases
to
qualify
for
the
credit
6
under
this
chapter,
the
owner
shall
provide
written
notice
7
to
the
assessor
by
the
date
for
filing
claims
specified
in
8
subsection
2
following
the
date
on
which
the
parcel
or
property
9
unit
ceases
to
qualify
for
the
credit.
10
4.
The
assessor
shall
remit
the
claims
for
credit
to
the
11
county
auditor
with
the
assessor’s
recommendation
for
allowance
12
or
disallowance.
If
the
assessor
recommends
disallowance
13
of
a
claim,
the
assessor
shall
submit
the
reasons
for
the
14
recommendation,
in
writing,
to
the
county
auditor.
The
county
15
auditor
shall
forward
the
claims
and
recommendations
to
the
16
board
of
supervisors.
The
board
shall
allow
or
disallow
the
17
claims.
18
5.
For
each
claim
and
allowance
of
a
credit
for
a
property
19
unit,
the
county
auditor
shall
calculate
the
average
of
all
20
consolidated
levy
rates
applicable
to
the
several
parcels
21
within
the
property
unit.
All
claims
for
credit
which
have
22
been
allowed
by
the
board
of
supervisors,
the
actual
value
of
23
such
parcels
and
property
units
applicable
to
the
fiscal
year
24
for
which
the
credit
is
claimed
that
are
subject
to
assessment
25
and
taxation
prior
to
imposition
of
any
applicable
assessment
26
limitation,
the
consolidated
levy
rates
for
such
parcels
and
27
the
average
consolidated
levy
rates
for
such
property
units
28
applicable
to
the
fiscal
year
for
which
the
credit
is
claimed,
29
and
the
taxing
districts
in
which
the
parcel
or
property
unit
30
is
located,
shall
be
certified
on
or
before
June
30,
in
each
31
year,
by
the
county
auditor
to
the
department.
32
6.
The
assessor
shall
maintain
a
permanent
file
of
current
33
business
property
tax
credits.
The
assessor
shall
file
a
34
notice
of
transfer
of
property
for
which
a
credit
has
been
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allowed
when
notice
is
received
from
the
office
of
the
county
1
recorder,
from
the
person
who
sold
or
transferred
the
property,
2
or
from
the
personal
representative
of
a
deceased
property
3
owner.
The
county
recorder
shall
give
notice
to
the
assessor
4
of
each
transfer
of
title
filed
in
the
recorder’s
office.
The
5
notice
from
the
county
recorder
shall
describe
the
property
6
transferred,
the
name
of
the
person
transferring
title
to
the
7
property,
and
the
name
of
the
person
to
whom
title
to
the
8
property
has
been
transferred.
9
7.
When
all
or
a
portion
of
a
parcel
or
property
unit
that
10
is
allowed
a
credit
under
this
chapter
is
sold,
transferred,
11
or
ownership
otherwise
changes,
the
buyer,
transferee,
or
12
new
owner
who
wishes
to
receive
the
credit
shall
refile
the
13
claim
for
credit.
In
addition,
when
a
portion
of
a
parcel
or
14
property
unit
that
is
allowed
a
credit
under
this
chapter
is
15
sold,
transferred,
or
ownership
otherwise
changes,
the
owner
of
16
the
portion
of
the
parcel
or
property
unit
for
which
ownership
17
did
not
change
shall
refile
the
claim
for
credit.
18
Sec.
6.
NEW
SECTION
.
426C.4
Eligibility
and
amount
of
19
credit.
20
1.
Each
parcel
classified
and
taxed
as
commercial
property,
21
industrial
property,
or
railway
property
under
chapter
434
is
22
eligible
for
a
credit
under
this
chapter.
A
person
may
claim
23
and
receive
one
credit
under
this
chapter
for
each
eligible
24
parcel
unless
the
parcel
is
part
of
a
property
unit
for
which
a
25
credit
is
claimed.
A
person
may
claim
and
receive
one
credit
26
under
this
chapter
for
each
property
unit.
A
credit
approved
27
for
a
property
unit
shall
be
allocated
to
the
several
parcels
28
within
the
property
unit
in
the
proportion
that
each
parcel’s
29
total
amount
of
property
taxes
due
and
payable
bears
to
the
30
total
amount
of
property
taxes
due
and
payable
on
the
property
31
unit.
Only
property
units
comprised
of
property
assessed
as
32
commercial
property,
industrial
property,
or
railway
property
33
under
chapter
434
are
eligible
for
a
credit
under
this
chapter.
34
However,
property
that
is
rented
or
leased
to
low-income
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individuals
and
families
as
authorized
by
section
42
of
the
1
Internal
Revenue
Code,
as
amended,
and
that
is
subject
to
2
assessment
procedures
relating
to
section
42
property
under
3
section
441.21,
subsection
2,
for
the
applicable
assessment
4
year,
shall
not
be
eligible
to
receive
a
credit
under
this
5
chapter
or
be
part
of
a
property
unit
that
receives
a
credit
6
under
this
chapter.
7
2.
Using
the
actual
value
of
each
parcel
or
property
unit
8
and
the
consolidated
levy
rate
for
each
parcel
or
the
average
9
consolidated
levy
rate
for
each
property
unit,
as
certified
10
by
the
county
auditor
to
the
department
under
section
426C.3,
11
subsection
5,
the
department
shall
calculate,
for
each
fiscal
12
year,
an
initial
amount
of
actual
value
for
use
in
determining
13
the
amount
of
the
credit
for
each
such
parcel
or
property
14
unit
so
as
to
provide
the
maximum
possible
credit
according
15
to
the
credit
formula
and
limitations
under
subsection
3,
16
and
to
provide
a
total
dollar
amount
of
credits
against
the
17
taxes
due
and
payable
in
the
fiscal
year
equal
to
ninety-eight
18
percent
of
the
moneys
in
the
fund
following
the
deposit
of
the
19
appropriation
for
the
fiscal
year
and
including
interest
or
20
earnings
credited
to
the
fund.
21
3.
a.
The
amount
of
the
credit
for
each
parcel
or
property
22
unit
for
which
a
claim
for
credit
under
this
chapter
has
been
23
approved
shall
be
calculated
under
paragraph
“b”
using
the
24
lesser
of
the
initial
amount
of
actual
value
determined
by
the
25
department
under
subsection
2,
and
the
amount
of
actual
value
26
of
the
parcel
or
property
unit
certified
by
the
county
auditor
27
under
section
426C.3,
subsection
5.
28
b.
The
amount
of
the
credit
for
each
parcel
or
property
29
unit
for
which
a
claim
for
credit
under
this
chapter
has
been
30
approved
shall
be
equal
to
the
product
of
the
amount
of
actual
31
value
determined
under
paragraph
“a”
times
the
difference,
32
stated
as
a
percentage,
between
the
assessment
limitation
33
percentage
applicable
to
the
parcel
or
property
unit
under
34
section
441.21,
subsection
5,
and
the
assessment
limitation
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percentage
applicable
to
residential
property
under
section
1
441.21,
subsection
4,
divided
by
one
thousand
dollars,
and
2
then
multiplied
by
the
consolidated
levy
rate
or
average
3
consolidated
levy
rate
per
one
thousand
dollars
of
taxable
4
value
applicable
to
the
parcel
or
property
unit
for
the
fiscal
5
year
for
which
the
credit
is
claimed
as
certified
by
the
county
6
auditor
under
section
426C.3,
subsection
5.
7
Sec.
7.
NEW
SECTION
.
426C.5
Payment
to
counties.
8
1.
Annually
the
department
shall
certify
to
the
county
9
auditor
of
each
county
the
amounts
of
the
business
property
10
tax
credits
allowed
in
the
county.
Each
county
auditor
shall
11
then
enter
the
credits
against
the
tax
levied
on
each
eligible
12
parcel
or
property
unit
in
the
county,
designating
on
the
tax
13
lists
the
credit
as
being
paid
from
the
fund.
Each
taxing
14
district
shall
receive
its
share
of
the
business
property
tax
15
credit
allowed
on
each
eligible
parcel
or
property
unit
in
16
such
taxing
district
in
the
proportion
that
the
levy
made
by
17
such
taxing
district
upon
the
parcel
or
property
unit
bears
18
to
the
total
levy
upon
the
parcel
or
property
unit
by
all
19
taxing
districts.
However,
the
several
taxing
districts
shall
20
not
draw
the
moneys
so
credited
until
after
the
semiannual
21
allocations
have
been
received
by
the
county
treasurer,
as
22
provided
in
this
section.
Each
county
treasurer
shall
show
on
23
each
taxpayer
receipt
the
amount
of
credit
received
from
the
24
fund.
25
2.
The
director
of
revenue
shall
authorize
the
department
of
26
administrative
services
to
draw
warrants
on
the
fund
payable
to
27
the
county
treasurers
of
the
several
counties
of
the
state
in
28
the
amounts
certified
by
the
department.
29
3.
The
amount
due
each
county
shall
be
paid
in
two
payments
30
on
November
15
and
March
15
of
each
fiscal
year,
drawn
upon
31
warrants
payable
to
the
respective
county
treasurers.
The
two
32
payments
shall
be
as
nearly
equal
as
possible.
33
Sec.
8.
NEW
SECTION
.
426C.6
Appeals.
34
1.
If
the
board
of
supervisors
disallows
a
claim
for
credit
35
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under
section
426C.3,
subsection
4,
the
board
of
supervisors
1
shall
send
written
notice,
by
mail,
to
the
claimant
at
the
2
claimant’s
last
known
address.
The
notice
shall
state
the
3
reasons
for
disallowing
the
claim
for
the
credit.
The
board
4
of
supervisors
is
not
required
to
send
notice
that
a
claim
for
5
credit
is
disallowed
if
the
claimant
voluntarily
withdraws
6
the
claim.
Any
person
whose
claim
is
disallowed
under
the
7
provisions
of
this
chapter
may
appeal
from
the
action
of
the
8
board
of
supervisors
to
the
district
court
of
the
county
in
9
which
the
parcel
or
property
unit
is
located
by
giving
written
10
notice
of
such
appeal
to
the
county
auditor
within
twenty
days
11
from
the
date
of
mailing
of
notice
of
such
action
by
the
board
12
of
supervisors.
13
2.
If
a
claim
for
credit
is
disallowed
by
the
board
of
14
supervisors,
and
such
action
is
subsequently
reversed
on
15
appeal,
the
credit
shall
be
allowed
on
the
applicable
parcel
or
16
property
unit,
and
the
director
of
revenue,
the
county
auditor,
17
and
the
county
treasurer
shall
provide
the
credit
and
change
18
their
books
and
records
accordingly.
In
the
event
the
claimant
19
has
paid
one
or
both
of
the
installments
of
the
tax
payable
20
in
the
year
or
years
in
question,
remittance
shall
be
made
to
21
the
claimant
of
the
amount
of
such
credit.
The
amount
of
such
22
credit
awarded
on
appeal
shall
be
allocated
and
paid
from
the
23
balance
remaining
in
the
fund.
24
Sec.
9.
NEW
SECTION
.
426C.7
Audit
——
recalculation
or
25
denial.
26
1.
If
on
the
audit
of
a
credit
provided
under
this
chapter,
27
the
director
of
revenue
determines
the
amount
of
the
credit
28
to
have
been
incorrectly
calculated
or
that
the
credit
is
29
not
allowable,
the
director
shall
recalculate
the
credit
and
30
notify
the
claimant
and
the
county
auditor
of
the
recalculation
31
or
denial
and
the
reasons
for
it.
The
director
shall
not
32
adjust
a
credit
after
three
years
from
October
31
of
the
year
33
in
which
the
claim
for
the
credit
was
filed.
If
the
credit
34
has
been
paid,
the
director
shall
give
notification
to
the
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claimant,
the
county
treasurer,
and
the
applicable
assessor
1
of
the
recalculation
or
denial
of
the
credit
and
the
county
2
treasurer
shall
proceed
to
collect
the
tax
owed
in
the
same
3
manner
as
other
property
taxes
due
and
payable
are
collected,
4
if
the
parcel
or
property
unit
for
which
the
credit
was
allowed
5
is
still
owned
by
the
claimant.
If
the
parcel
or
property
unit
6
for
which
the
credit
was
allowed
is
not
owned
by
the
claimant,
7
the
amount
may
be
recovered
from
the
claimant
by
assessment
in
8
the
same
manner
that
income
taxes
are
assessed
under
sections
9
422.26
and
422.30.
The
amount
of
such
erroneous
credit,
when
10
collected,
shall
be
deposited
in
the
fund.
11
2.
The
claimant
or
board
of
supervisors
may
appeal
any
12
decision
of
the
director
of
revenue
to
the
state
board
of
tax
13
review
pursuant
to
section
421.1,
subsection
5.
The
claimant,
14
the
board
of
supervisors,
or
the
director
of
revenue
may
seek
15
judicial
review
of
the
action
of
the
state
board
of
tax
review
16
in
accordance
with
chapter
17A.
17
Sec.
10.
NEW
SECTION
.
426C.8
False
claim
——
penalty.
18
A
person
who
makes
a
false
claim
for
the
purpose
of
obtaining
19
a
credit
provided
for
in
this
chapter
or
who
knowingly
receives
20
the
credit
without
being
legally
entitled
to
it
is
guilty
of
a
21
fraudulent
practice.
The
claim
for
a
credit
of
such
a
person
22
shall
be
disallowed
and
if
the
credit
has
been
paid
the
amount
23
shall
be
recovered
in
the
manner
provided
in
section
426C.7.
24
In
such
cases,
the
director
of
revenue
shall
send
a
notice
of
25
disallowance
of
the
credit.
26
Sec.
11.
NEW
SECTION
.
426C.9
Rules.
27
The
director
of
revenue
shall
prescribe
forms,
instructions,
28
and
rules
as
necessary,
pursuant
to
chapter
17A,
to
carry
out
29
and
effectuate
the
purposes
of
this
chapter.
30
Sec.
12.
IMPLEMENTATION.
Notwithstanding
the
deadline
31
for
filing
claims
established
in
section
426C.3,
for
a
credit
32
against
property
taxes
due
and
payable
during
the
fiscal
year
33
beginning
July
1,
2014,
the
claim
for
the
credit
shall
be
filed
34
not
later
than
January
15,
2014.
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Sec.
13.
APPLICABILITY.
This
Act
applies
to
property
taxes
1
due
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
2
2014.
3
EXPLANATION
4
This
bill
creates
a
business
property
tax
credit
under
new
5
Code
chapter
426C
for
property
taxes
due
and
payable
in
fiscal
6
years
beginning
on
or
after
July
1,
2014.
7
The
bill
establishes
a
business
property
tax
credit
8
fund.
For
the
fiscal
year
beginning
July
1,
2014,
the
9
bill
appropriates
from
the
general
fund
of
the
state
to
the
10
department
of
revenue
for
deposit
in
the
fund,
$50
million.
11
For
the
fiscal
year
beginning
July
1,
2015,
and
each
fiscal
12
year
thereafter,
the
bill
appropriates
from
the
general
fund
13
of
the
state
to
the
department
of
revenue
for
deposit
in
the
14
fund
an
amount
equal
to
the
total
amount
appropriated
by
the
15
general
assembly
to
the
fund
in
the
previous
fiscal
year.
In
16
addition,
for
fiscal
years
beginning
on
or
after
July
1,
2015,
17
the
bill
appropriates
an
additional
$50
million
to
the
fund
18
if
the
revenue
estimating
conference
certifies
that
the
total
19
amount
of
general
fund
revenues
has
grown
by
at
least
4
percent
20
as
compared
to
the
previous
fiscal
year.
The
bill
provides,
21
however,
that
the
total
appropriation
to
the
fund
shall
not
22
exceed
$250
million
in
any
one
fiscal
year.
Under
the
bill,
23
interest
or
earnings
on
moneys
deposited
in
the
fund
are
24
credited
to
the
fund,
moneys
in
the
fund
are
not
subject
to
the
25
provisions
of
Code
section
8.33,
and
moneys
in
the
fund
shall
26
not
be
transferred,
used,
obligated,
appropriated,
or
otherwise
27
encumbered
except
as
provided
in
new
Code
chapter
426C.
28
The
bill
provides
that
each
person
who
wishes
to
claim
a
29
business
property
tax
credit
shall
obtain
the
appropriate
30
forms
from
the
assessor
and
file
the
claim
with
the
assessor.
31
The
director
of
revenue
is
required
to
prescribe
suitable
32
forms
and
instructions
for
such
claims,
and
make
such
forms
33
and
instructions
available
to
the
assessors.
The
assessor
34
is
required
to
remit
the
claims
for
credit
to
the
county
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auditor
with
the
assessor’s
recommendation
for
allowance
1
or
disallowance.
If
the
assessor
recommends
disallowance
2
of
a
claim,
the
assessor
shall
submit
the
reasons
for
the
3
recommendation,
in
writing,
to
the
county
auditor.
The
county
4
auditor
then
forwards
the
claims
to
the
board
of
supervisors.
5
The
board
is
required
to
allow
or
disallow
the
claims.
If
6
the
board
of
supervisors
disallows
a
claim
for
a
credit,
the
7
board
of
supervisors
is
required
to
send
written
notice,
by
8
mail,
to
the
claimant
and
the
notice
must
state
the
reasons
9
for
disallowing
the
claim
for
the
credit.
Any
person
whose
10
claim
for
credit
is
disallowed
may
appeal
from
the
action
of
11
the
board
of
supervisors
to
the
district
court
of
the
county
in
12
which
the
parcel
or
property
unit
is
located.
13
Claims
for
the
business
property
tax
credit
must
be
filed
14
not
later
than
March
15
preceding
the
fiscal
year
during
which
15
the
property
taxes
for
which
the
credit
is
claimed
are
due
16
and
payable.
However,
the
deadline
for
filing
claims
against
17
property
taxes
due
and
payable
in
the
fiscal
year
beginning
18
July
1,
2014,
is
January
15,
2014.
19
Upon
the
filing
of
a
claim
and
allowance
of
a
business
20
property
tax
credit,
the
credit
is
allowed
on
the
parcel
or
21
property
unit
for
successive
years
without
further
filing
as
22
long
as
the
parcel
or
property
unit
satisfies
the
requirements
23
for
the
credit.
The
owner
is
required
to
provide
written
24
notice
to
the
assessor
when
the
parcel
or
property
unit
ceases
25
to
qualify
for
the
credit.
The
bill
requires
the
assessor
to
26
maintain
a
permanent
file
of
current
credits
and
also
specifies
27
certain
requirements
for
parcel
or
property
unit
owners,
28
assessors,
and
county
recorders
when
all
or
a
portion
of
such
29
parcels
or
property
units
are
sold,
transferred,
or
ownership
30
otherwise
changes.
31
Under
the
bill,
each
parcel
classified
and
taxed
as
32
commercial
property,
industrial
property,
or
railway
property
33
under
Code
chapter
434,
is
eligible
for
a
business
property
34
tax
credit.
A
person
may
claim
and
receive
one
credit
for
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each
eligible
parcel
unless
the
parcel
is
part
of
a
property
1
unit.
The
bill
defines
“property
unit”
to
mean
contiguous
2
parcels
located
within
the
same
county,
with
the
same
property
3
tax
classification,
owned
by
the
same
person,
and
operated
by
4
that
person
for
a
common
use
and
purpose.
A
person
may
only
5
claim
and
receive
one
tax
credit
for
each
property
unit.
A
6
credit
approved
for
a
property
unit
is
allocated
to
the
several
7
parcels
within
the
property
unit
in
the
proportion
that
each
8
parcel’s
property
tax
liability
bears
to
the
total
property
9
tax
liability
for
the
property
unit.
Only
those
property
10
units
comprised
of
commercial
property,
industrial
property,
11
or
railway
property
under
Code
chapter
434
are
eligible
for
a
12
credit.
13
The
bill
provides
that
property
that
is
rented
or
leased
to
14
low-income
individuals
and
families
as
authorized
by
section
42
15
of
the
Internal
Revenue
Code,
and
that
is
subject
to
section
16
42
assessment
procedures
for
the
applicable
assessment
year
is
17
not
eligible
for
a
business
property
tax
credit
under
new
Code
18
chapter
426C.
19
The
bill
provides
that
all
claims
for
credit
which
have
20
been
allowed,
the
actual
value
of
the
applicable
parcels
and
21
property
units
that
are
subject
to
assessment
and
taxation,
22
the
consolidated
levy
rates
or
average
consolidated
levy
rates
23
for
such
parcels
and
property
units
applicable
to
the
fiscal
24
year
for
which
the
credit
is
claimed,
and
the
taxing
districts
25
in
which
each
parcel
or
property
unit
is
located,
shall
be
26
certified
on
or
before
June
30,
in
each
year,
by
the
county
27
auditor
to
the
department
of
revenue.
28
The
bill
provides
that
using
the
actual
value
of
each
parcel
29
or
property
unit
and
the
consolidated
levy
rate
for
each
parcel
30
or
average
consolidated
levy
rate
for
each
property
unit,
as
31
certified
by
the
county
auditor,
the
department
is
required
to
32
calculate,
for
each
fiscal
year,
an
initial
amount
of
actual
33
value
for
use
in
determining
the
amount
of
the
credit
for
each
34
approved
parcel
or
property
unit
so
as
to
provide
the
maximum
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possible
credit
according
to
the
credit
formula
and
limitations
1
in
the
bill,
and
to
provide
a
total
dollar
amount
of
credits
2
in
the
fiscal
year
equal
to
98
percent
of
the
moneys
in
the
3
business
property
tax
credit
fund
following
the
deposit
of
the
4
appropriation
for
the
fiscal
year
and
moneys
credited
to
the
5
fund.
6
The
credit
for
each
parcel
or
property
unit
for
which
a
7
claim
for
a
business
property
tax
credit
has
been
approved
is
8
calculated
using
the
lesser
of
the
initial
amount
of
actual
9
value
determined
by
the
department
for
the
fiscal
year
and
10
the
actual
value
of
the
parcel
or
property
unit
as
certified
11
to
the
department
of
revenue.
The
amount
of
the
credit
for
12
each
parcel
or
property
unit
is
the
product
of
the
lesser
13
amount
of
actual
value,
so
determined,
times
the
difference
14
between
the
assessment
limitation
percentage
applicable
to
15
the
parcel
or
property
unit
under
Code
section
441.21(5)
16
(commercial,
industrial,
and
railway
property
tax
rollback)
and
17
the
assessment
limitation
percentage
applicable
to
residential
18
property
under
Code
section
441.21(4),
divided
by
$1,000,
19
and
then
multiplied
by
the
consolidated
levy
rate
or
average
20
consolidated
levy
rate
per
$1,000
of
taxable
value
applicable
21
to
the
parcel
or
property
unit
for
the
fiscal
year
for
which
22
the
credit
is
claimed.
23
The
bill
specifies
the
procedures
for
the
payment
of
the
24
amount
of
the
business
property
tax
credits
to
the
county
25
treasurers
and
the
resulting
apportionment
to
the
applicable
26
taxing
districts.
The
bill
also
specifies
the
requirements
and
27
procedures
for
an
appeal
if
a
claim
for
credit
is
disallowed,
28
specifies
the
requirements
and
procedures
for
an
audit
of
29
a
business
property
tax
credit,
and
specifies
requirements
30
relating
to
the
collection
of
property
taxes
due
as
the
result
31
of
an
incorrectly
calculated
or
improperly
approved
credit.
32
The
bill
provides
that
a
person
who
makes
a
false
claim
for
33
the
purpose
of
obtaining
a
business
property
tax
credit
or
who
34
knowingly
receives
the
credit
without
being
legally
entitled
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to
it
is
guilty
of
a
fraudulent
practice
and
is
subject
to
a
1
criminal
penalty.
2
The
bill
requires
the
director
of
revenue
to
prescribe
3
forms,
instructions,
and
rules
as
necessary,
pursuant
to
Code
4
chapter
17A,
to
carry
out
and
effectuate
the
purposes
of
new
5
Code
chapter
426C.
6
The
bill
applies
to
property
taxes
due
and
payable
in
fiscal
7
years
beginning
on
or
after
July
1,
2014.
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