Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Maxey H.B. No. 2716
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to relief from residential ad valorem taxation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Title 1, Tax Code, is amended by adding Subtitle
1-5 G to read as follows:
1-6 SUBTITLE G. PROPERTY TAX REFUND
1-7 CHAPTER 50. PROPERTY TAX REFUND
1-8 Sec. 50.01. SHORT TITLE. This chapter may be cited as the
1-9 "Circuitbreaker Property Tax Refund Act of 1997."
1-10 Sec. 50.02. PURPOSE. The purpose of this chapter is to
1-11 provide property tax relief to persons who own or rent their
1-12 homesteads.
1-13 Sec. 50.03. MEANING OF TERMS. In this chapter:
1-14 (a) "Comptroller" means the comptroller of public accounts
1-15 of the state of Texas.
1-16 (b)(1) "Income" means the sum of the following:
1-17 (A) federal adjusted gross income as defined in
1-18 the Internal Revenue Code; and
1-19 (B) the sum of the following amounts to the
1-20 extent not included in (A) above:
1-21 (i) all nontaxable income;
1-22 (ii) the amount of a passive activity loss
1-23 that is not disallowed as a result of section 469, paragraph (i) or
1-24 (m) of the Internal Revenue Code and the amount of passive activity
2-1 loss carryover allowed under section 469(b) of the Internal Revenue
2-2 Code;
2-3 (iii) an amount equal to the total of any
2-4 discharge of qualified indebtedness of a solvent individual
2-5 excluded from gross income under section 108(g) of the Internal
2-6 Revenue Code;
2-7 (iv) cash assistance and relief;
2-8 (v) any pension or annuity (including
2-9 railroad retirement benefits, all payments received under the
2-10 federal Social Security Act, supplemental security income, and
2-11 veterans benefits) which was not exclusively funded by the claimant
2-12 or spouse, or which was funded exclusively by the claimant or
2-13 spouse and which funding payments were excluded from federal
2-14 adjusted gross income in the years when the payments were made;
2-15 (vi) interest received from the federal or
2-16 state government or any instrumentality or political subdivision
2-17 thereof;
2-18 (vii) workers' compensation;
2-19 (viii) nontaxable strike benefits;
2-20 (ix) the gross amounts of payments
2-21 received in the nature of disability income or sick pay as the
2-22 result of accident, sickness, or other disability, whether funded
2-23 through insurance or otherwise;
2-24 (x) a lump sum distribution under section
2-25 402(e)(3) of the Internal Revenue Code;
2-26 (xi) contributions made by the claimant to
2-27 an individual retirement account, including a qualified voluntary
2-28 employee contribution; simplified employee pension plan;
2-29 self-employed retirement plan; cash or deferred arrangement plan
2-30 under section 401(k) of the Internal Revenue Code or deferred
3-1 compensation plan under section 457 of the Internal Revenue Code;
3-2 and
3-3 (xii) nontaxable scholarship or fellowship
3-4 grants.
3-5 (2) "Income" does not include:
3-6 (A) amount excluded pursuant to sections 101(a),
3-7 102 and 121 of the Internal Revenue Code;
3-8 (B) amounts of any pension or annuity which was
3-9 exclusively funded by the claimant or spouse and which funding
3-10 payments were not excluded from federal adjusted gross income in
3-11 the years the payments were made;
3-12 (C) surplus food or other relief in kind
3-13 supplied by a governmental agency;
3-14 (D) relief granted under this chapter; or
3-15 (E) child support payments received under a
3-16 temporary or final decree of divorce.
3-17 (3) The sum of the following amounts may be subtracted
3-18 from income:
3-19 (A) for the claimant's first dependent, the
3-20 exemption amount multiplied by 1.4;
3-21 (B) for the claimant's second dependent, the
3-22 exemption amount multiplied by 1.3;
3-23 (C) for the claimant's third dependent, the
3-24 exemption amount multiplied by 1.2;
3-25 (D) for the claimant's fourth dependent, the
3-26 exemption amount multiplied by 1.1;
3-27 (E) for the claimant's fifth dependent, the
3-28 exemption amount; and
3-29 (F) if the claimant or the claimant's spouse was
3-30 disabled or attained the age of 65 on or before December 31 of the
4-1 year for which the taxes were levied or rent paid, the exemption
4-2 amount.
4-3 (4)(A) For the purposes of this subsection, in the
4-4 case of an individual who files an income tax return on a fiscal
4-5 year basis, the term "federal adjusted gross income" shall mean
4-6 federal adjusted gross income elected in the fiscal year ending in
4-7 the calendar year. Federal adjusted gross income shall not be
4-8 reduced by the amount of a net operating loss carryback or
4-9 carryforward or a capital loss carryback or carryforward allowed
4-10 for the year.
4-11 (B) For the purposes of this subsection, the
4-12 "exemption amount" means the exemption amount under section 151(d)
4-13 of the Internal Revenue Code for the taxable year for which the
4-14 income is reported.
4-15 (c) "Household" means a claimant and an individual related
4-16 to the claimant as husband or wife who are domiciled in the same
4-17 homestead.
4-18 (d) "Household income" means all income received by the
4-19 persons of a household in a calendar year while members of the
4-20 household, other than income of a dependent.
4-21 (e) "Homestead" has the same meaning as defined by Sec.
4-22 41.002, Property Code.
4-23 (f) "Dependent" means any person who is considered a
4-24 dependent under sections 151 and 152 of the Internal Revenue Code.
4-25 In the case of a son, stepson, daughter, stepdaughter of the
4-26 claimant, amounts received as an aid to families with dependent
4-27 children grant, allowance to or on behalf of the child, surplus
4-28 food, or other relief in kind supplied by a governmental agency
4-29 must not be taken into account in determining whether the child
4-30 received more than half of the child's support from the claimant.
5-1 (g)(1) "Claimant" means a person, other than a dependent, as
5-2 defined under sections 151 and 152 of the Internal Revenue Code
5-3 disregarding section 152(b)(3) of the Internal Revenue Code, who
5-4 filed a claim authorized by this chapter and who was a resident of
5-5 this state during the calendar year for which the claim for relief
5-6 was filed.
5-7 (2) In the case of a claim relating to rent
5-8 constituting property taxes, the claimant shall have resided in a
5-9 rented or leased unit on which ad valorem taxes or payments made in
5-10 lieu of ad valorem taxes, including payments of special assessments
5-11 imposed in lieu of ad valorem taxes, are payable at some time
5-12 during the calendar year covered by the claim.
5-13 (3) "Claimant" shall not include a resident of a
5-14 nursing home, intermediate care facility, or long-term residential
5-15 facility whose rent constituting property taxes is paid pursuant
5-16 to the supplemental security income program under title XVI of the
5-17 Social Security Act, the medical assistance program pursuant to
5-18 title XIX of the Social Security Act. If only a portion of the rent
5-19 constituting property taxes is paid by these programs, the resident
5-20 shall be a claimant for purposes of this chapter, but the refund
5-21 calculated pursuant to Sec. 50.04 shall be multiplied by a
5-22 fraction, the numerator of which is income as defined herein,
5-23 reduced by the total amount of income from the above sources other
5-24 than vendor payments under the medical assistance program and the
5-25 denominator of which is income as defined herein, plus vendor
5-26 payments under the medical assistance program, to determine the
5-27 allowable refund pursuant to this chapter.
5-28 (4) Notwithstanding (3) above, if the claimant was a
5-29 resident of the nursing home, intermediate care facility or
5-30 long-term residential facility for only a portion of the calendar
6-1 year covered by the claim, the claimant may compute rent
6-2 constituting property taxes by disregarding the rent constituting
6-3 property taxes from the nursing home, intermediate care facility,
6-4 or long-term residential facility and use only that amount of rent
6-5 constituting property taxes or property taxes payable relating to
6-6 that portion of the year when the claimant was not in the facility.
6-7 The claimant's household income is the income for the entire
6-8 calendar year covered by the claim.
6-9 (5) In the case of a claim for rent constituting
6-10 property taxes of a part-year Texas resident, the income and rental
6-11 reflected in this computation shall be for the period of Texas
6-12 residency only. Any rental expenses paid which may be reflected in
6-13 arriving at federal adjusted gross income cannot be utilized for
6-14 this computation. When two individuals of a household are able to
6-15 meet the qualifications for a claimant, they may determine among
6-16 them as to who the claimant shall be. If they are unable to agree,
6-17 the matter shall be referred to the comptroller whose decision
6-18 shall be final. If a homestead property owner was a part-year
6-19 Texas resident, the income reflected in the computation made
6-20 pursuant to Sec. 50.04 shall be for the entire calendar year,
6-21 including income not assignable to Texas.
6-22 (6) If a homestead is occupied by two or more renters,
6-23 who are not husband and wife, the rent shall be deemed to be paid
6-24 equally by each, and separate claims shall be filed by each. The
6-25 income of each shall be each renter's household income for purposes
6-26 of computing the amount of credit to be allowed.
6-27 (h) "Disabled claimant" means any claimant who has a
6-28 disability.
6-29 (i) "Disability" means:
6-30 (1) Inability to engage in any substantial gainful
7-1 activity by reason of any medically determinable physical or mental
7-2 impairment which can be expected to result in death or has lasted
7-3 or can be expected to last for a continuous period of not less than
7-4 12 months; or
7-5 (2) Blindness; and the term "blindness" means central
7-6 acuity of 20/200 or less in the better eye with the use of a
7-7 correcting lens. An eye which is accompanied by a limitation in
7-8 the fields of vision such that the widest diameter of the visual
7-9 field subtends an angle no greater than 20 degrees shall be
7-10 considered as having a central visual acuity of 20/200 or less.
7-11 (3) An individual shall be determined to be under a
7-12 disability only if the physical or mental impairment or impairments
7-13 are of such severity that the individual is not only unable to do
7-14 previous work but cannot, considering age, education, and work
7-15 experience, engage in any other kind of substantial gainful work
7-16 which exists in the state economy, regardless of whether the work
7-17 exists in the immediate area of residence, or whether a specific
7-18 job vacancy exists for the individual, or whether the individual
7-19 would be hired on applying for work. For purposes of the preceding
7-20 sentence, "work which exists in the state economy" means work which
7-21 exists in significant numbers either in the area where the
7-22 individual lives or in several areas of the state.
7-23 (4) A "physical or mental impairment" is an impairment
7-24 that results from anatomical, physiological, or psychological
7-25 abnormalities which are demonstrable by medically acceptable
7-26 clinical and laboratory diagnostic techniques.
7-27 (j) "Rent constituting property taxes" means the amount of
7-28 gross rent actually paid in cash, or its equivalent, which is
7-29 attributable either to the property tax paid on the unit or to the
7-30 amount paid in lieu of property taxes, in any calendar year by a
8-1 claimant for the right of occupancy of the claimant's Texas
8-2 homestead in the calendar year, and which rent constitutes the
8-3 basis, in the succeeding calendar year of a claim for relief under
8-4 this chapter by the claimant. The amount of rent attributable to
8-5 property taxes paid or payments in lieu made on the unit shall be
8-6 determined by multiplying the gross rent paid by the claimant for
8-7 the calendar year for the unit by a fraction, the numerator of
8-8 which is the net tax on the property where the unit is located and
8-9 the denominator of which is the total scheduled rent. In no case
8-10 may the rent constituting property taxes exceed 50 percent of the
8-11 gross rent paid by the claimant during that calendar year. In the
8-12 case of a claimant who resides in a unit for which either a rent
8-13 subsidy is paid to, or for, the claimant based on the income of the
8-14 claimant or the claimant's family, or a subsidy is paid to a public
8-15 housing authority that owns or operates the claimant's rental unit,
8-16 pursuant to 42 U.S.C. Sec. 1437c, 20 percent of gross rent actually
8-17 paid in cash or its equivalent shall be the claimant's "rent
8-18 constituting property taxes paid." For purposes of this
8-19 subsection, "rent subsidy" does not include any housing assistance
8-20 received under aid to families with dependent children, general
8-21 assistance, supplemental security income, or similar income
8-22 maintenance programs.
8-23 (k) "Gross rent" means rental paid for the right of
8-24 occupancy, at arms-length, of a homestead, exclusive of charges for
8-25 any medical services furnished by the landlord as a part of the
8-26 rental agreement, whether expressly set out in the rental agreement
8-27 or not. If the landlord and tenant have not dealt with each other
8-28 at arms-length and the comptroller determines that the gross rent
8-29 charged was excessive, the comptroller may adjust the gross rent to
8-30 a reasonable amount for purposes of this chapter.
9-1 (l) "Total scheduled rent" means the sum of the monthly
9-2 rents assigned to the residential rental units in the property
9-3 multiplied by 12. The assigned rents are the rents effective on
9-4 April 15 for taxes payable in 1998 and thereafter. The rents must
9-5 be an arm's-length rental, including garage rents if any, but not
9-6 including charges for medical services furnished by the landlord as
9-7 a part of the rental agreement. In determining total scheduled
9-8 rent, no deduction is allowed for vacant units, uncollected rent,
9-9 or reduced cash rents in units occupied by employees or agents of
9-10 the owner.
9-11 (m) "Property taxes payable" means the property tax
9-12 exclusive of special assessments, penalties, and interest payable
9-13 on a claimant's homestead in any calendar year. In the case of a
9-14 claimant who makes ground lease payments, "property taxes payable"
9-15 includes the amount of the payments directly attributable to the
9-16 property taxes assessed against the parcel on which the house is
9-17 located. No apportionment or reduction of the "property taxes
9-18 payable" shall be required for the use of a portion of the
9-19 claimant's homestead for a business purpose if the claimant does
9-20 not deduct any business depreciation expenses for the use of a
9-21 portion of the homestead in the determination of federal adjusted
9-22 gross income. The amount attributable to property taxes shall be
9-23 determined by multiplying the net tax on the parcel by a fraction,
9-24 the numerator of which is the gross rent paid for the calendar year
9-25 for the site and the denominator of which is the gross rent paid
9-26 for the calendar year for the parcel. When a homestead is owned by
9-27 two or more persons as joint tenants or tenants in common, such
9-28 tenants shall determine between them which tenant may claim the
9-29 property taxes payable on the homestead. If they are unable to
9-30 agree, the matter shall be referred to the comptroller whose
10-1 decision shall be final. Property taxes are considered payable in
10-2 the year prescribed by law for payment of the taxes.
10-3 In the case of a claim relating to "property taxes payable,"
10-4 the claimant must have owned and occupied the homestead on January
10-5 2 of the year in which the tax is payable and either the property
10-6 must have been classified as homestead property on or before
10-7 December 15 of the assessment year to which the "property taxes
10-8 payable" relate; or the claimant must provide documentation from
10-9 the county tax assessor-collector that application for homestead
10-10 classification has been made on or before December 15 of the year
10-11 in which the "property taxes payable" were payable and that the
10-12 assessor has approved the application.
10-13 (n) "Net tax" means:
10-14 (1) the property tax, exclusive of special
10-15 assessments, interest, and penalties, or
10-16 (2) the payments made in lieu of ad valorem taxes,
10-17 including payments of special assessments imposed in lieu of ad
10-18 valorem taxes, for the calendar year in which the rent was paid.
10-19 If a portion of the property is occupied as a homestead or is used
10-20 for other than rental purposes, the net tax shall be the amount of
10-21 tax reduced by the percentage that the nonrental use comprises of
10-22 the total square footage of the building. If a portion of the
10-23 property is used for purposes other than for residential rental and
10-24 none of the property is occupied as a homestead, the net tax shall
10-25 be the amount of the tax of the parcel multiplied by a fraction,
10-26 the numerator of which is the net tax capacity of the residential
10-27 rental portion and the denominator of which is the total net tax
10-28 capacity of the parcel. If a portion of the property is used for
10-29 other than rental residential purposes, the tax assessor-collector
10-30 shall list on the property tax statement the amount of net tax
11-1 pertaining to the rental residential portion of the property.
11-2 The amount of the net tax shall not be reduced by an
11-3 abatement or a court ordered reduction in the property tax on the
11-4 property made after the certificate of rent constituting property
11-5 tax has been provided to the renter.
11-6 (o) "Internal Revenue Code" means the Internal Revenue Code
11-7 of 1986.
11-8 Sec. 50.04. REFUND ALLOWABLE. (a) REFUND ALLOWED. A
11-9 refund shall be allowed each claimant in the amount that property
11-10 taxes payable or rent constituting property taxes exceed the
11-11 percentage of the household income of the claimant specified in
11-12 Subsection (b) or (c) in the year for which the taxes were levied
11-13 or in the year in which the rent was paid as specified in
11-14 Subsection (b) or (c). If the amount of property taxes payable or
11-15 rent constituting property taxes is equal to or less than the
11-16 percentage of the household income of the claimant specified in
11-17 Subsection (b) or (c) in the year for which the taxes were levied
11-18 or in the year in which the rent was paid, the claimant shall not
11-19 be eligible for a state refund pursuant to this section.
11-20 (b) HOMEOWNER'S REFUND. A claimant whose property taxes
11-21 payable are in excess of the percentage of the household income
11-22 stated below shall pay an amount equal to the percent of income
11-23 shown for the appropriate household income level along with the
11-24 percent to be paid by the claimant of the remaining amount of
11-25 property taxes payable. The state refund equals the amount of
11-26 property taxes payable that remain, up to the state refund amount
11-27 shown below:
11-28 Percent Percent Maximum
11-29 Household Income of Income Paid by State
11-30 Claimant Refund
12-1 $0 to 1,029 1.2 percent 18 percent $440
12-2 1,030 to 2,059 1.3 percent 18 percent $440
12-3 2,060 to 3,099 1.4 percent 20 percent $440
12-4 3,100 to 4,129 1.6 percent 20 percent $440
12-5 4,130 to 5,159 1.7 percent 20 percent $440
12-6 5,160 to 7,229 1.9 percent 25 percent $440
12-7 7,230 to 8,259 2.1 percent 25 percent $440
12-8 8,260 to 9,289 2.2 percent 25 percent $440
12-9 9,290 to 10,319 2.3 percent 30 percent $440
12-10 10,320 to 11,349 2.4 percent 30 percent $440
12-11 11,350 to 12,389 2.5 percent 30 percent $440
12-12 12,390 to 14,449 2.6 percent 30 percent $440
12-13 14,450 to 15,479 2.8 percent 35 percent $440
12-14 15,480 to 16,509 3.0 percent 35 percent $440
12-15 16,510 to 17,549 3.2 percent 40 percent $440
12-16 17,550 to 21,669 3.3 percent 40 percent $440
12-17 21,670 to 24,769 3.4 percent 45 percent $440
12-18 24,770 to 30,959 3.5 percent 45 percent $440
12-19 30,960 to 36,119 3.5 percent 45 percent $440
12-20 36,120 to 41,279 3.7 percent 50 percent $440
12-21 41,280 to 58,829 4.0 percent 50 percent $440
12-22 58,830 to 59,859 4.0 percent 50 percent $310
12-23 59,860 to 60,889 4.0 percent 50 percent $210
12-24 60,890 to 61,929 4.0 percent 50 percent $100
12-25 The payment made to a claimant shall be the amount of the
12-26 state refund calculated under this subdivision. No payment is
12-27 allowed if the claimant's household income is $61,930 or more.
12-28 (c) RENTER'S REFUND. A claimant whose rent constituting
12-29 property taxes exceeds the percentage of the household income
12-30 stated below must pay an amount equal to the percent of income
13-1 shown for the appropriate household income level along with the
13-2 percent to be paid by the claimant of the remaining amount of rent
13-3 constituting property taxes. The state refund equals the amount of
13-4 rent constituting property taxes that remain, up to the maximum
13-5 state refund amount shown below:
13-6 Percent Percent Maximum
13-7 Household Income of Income Paid by State
13-8 Claimant Refund
13-9 $ 0 to 3,099 1.0 percent 5 percent $1,030
13-10 3,100 to 4,129 1.0 percent 10 percent $1,030
13-11 4,130 to 5,159 1.1 percent 10 percent $1,030
13-12 5,160 to 7,229 1.2 percent 10 percent $1,030
13-13 7,230 to 9,289 1.3 percent 15 percent $1,030
13-14 9,290 to 10,319 1.4 percent 15 percent $1,030
13-15 10,320 to 11,349 1.4 percent 20 percent $1,030
13-16 11,350 to 13,419 1.5 percent 20 percent $1,030
13-17 13,420 to 14,449 1.6 percent 20 percent $1,030
13-18 14,450 to 15,479 1.7 percent 25 percent $1,030
13-19 15,480 to 17,549 1.8 percent 25 percent $1,030
13-20 17,550 to 18,579 1.9 percent 30 percent $1,030
13-21 18,580 to 19,609 2.0 percent 30 percent $1,030
13-22 19,610 to 20,639 2.2 percent 30 percent $1,030
13-23 20,640 to 21,669 2.4 percent 30 percent $1,030
13-24 21,670 to 22,709 2.6 percent 35 percent $1,030
13-25 22,710 to 23,739 2.7 percent 35 percent $1,030
13-26 23,740 to 24,769 2.8 percent 35 percent $1,030
13-27 24,770 to 25,799 2.9 percent 40 percent $1,030
13-28 25,800 to 26,839 3.0 percent 40 percent $1,030
13-29 26,840 to 27,869 3.1 percent 40 percent $1,030
13-30 27,870 to 28,899 3.2 percent 40 percent $1,030
14-1 28,900 to 29,929 3.3 percent 45 percent $ 930
14-2 29,930 to 30,959 3.4 percent 45 percent $ 830
14-3 30,960 to 31,999 3.5 percent 45 percent $ 720
14-4 32,000 to 33,029 3.5 percent 50 percent $ 620
14-5 33,030 to 34,059 3.5 percent 50 percent $ 520
14-6 34,060 to 35,089 3.5 percent 50 percent $ 310
14-7 35,090 to 36,119 3.5 percent 50 percent $ 100
14-8 The payment made to a claimant is the amount of the state
14-9 refund calculated under this subdivision. No payment is allowed if
14-10 the claimant's household income is $36,120 or more.
14-11 (d) PUBLISHING OF TABLES. The comptroller shall construct
14-12 and make available to taxpayers a comprehensive table showing the
14-13 property taxes to be paid and refund allowed at various levels of
14-14 income and assessment. The table shall follow the schedule of
14-15 income percentages, maximums and other provisions specified in
14-16 Subsections (b) and (c) except that the comptroller may graduate
14-17 the transition between income brackets. All refunds shall be
14-18 computed in accordance with tables prepared and issued by the
14-19 comptroller.
14-20 (e) COMBINED RENTER AND HOMEOWNER REFUND. In the case of a
14-21 claimant who is entitled to a refund in a calendar year for claims
14-22 based both on rent constituting property taxes and property taxes
14-23 payable, the refund allowable equals the sum of the refunds
14-24 allowable.
14-25 Sec. 50.05. COMBINED HOUSEHOLD INCOME. (a) If a person
14-26 occupies a homestead with another person or persons not related to
14-27 the person as husband and wife, excluding dependents, roomers or
14-28 boarders on contract, and has property tax payable with respect to
14-29 the homestead, the household income of the claimant or claimants
14-30 for the purpose of computing the refund allowed by Sec. 50.04 shall
15-1 include the total income received by the other persons residing in
15-2 the homestead. For purposes of this section, "dependent" includes
15-3 a parent of the claimant or spouse who lives in the claimant's
15-4 homestead and does not have an ownership interest in the homestead.
15-5 (b) If a person occupies a homestead with another person or
15-6 persons not related as husband and wife or as dependents, the
15-7 property tax payable or rent constituting property tax shall be
15-8 reduced as follows: If the other person or persons are residing at
15-9 the homestead under rental or lease agreement, the amount of
15-10 property tax payable or rent constituting property tax shall be
15-11 that portion not covered by the rental agreement.
15-12 Sec. 50.06. PUBLIC INFORMATION; NOTICE ON CLAIM FORM. The
15-13 property tax refund claim form must contain a statement notifying
15-14 claimants that the property tax refund amount is public data, and
15-15 that it will appear on the property tax statement and on other
15-16 records.
15-17 Sec. 50.07. TIME FOR PAYMENT. (a) Allowable claims filed
15-18 pursuant to the provisions of this chapter and the refund under
15-19 section 50.04 shall be paid by the comptroller from the general
15-20 fund as provided in this section.
15-21 (b) A claimant who is a renter shall receive full payment
15-22 after August 1 and before August 15 or 60 days after receipt of the
15-23 application, whichever is later.
15-24 (c) Payment of a refund is made as deduction on the property
15-25 tax statement for the homestead for taxes payable the following
15-26 year.
15-27 (d) Annually on or before July 20, the comptroller shall pay
15-28 the amount of the property tax refunds under section 50.04 to the
15-29 county treasurer for settlement and distribution.
15-30 Sec. 50.08. ONE CLAIMANT PER HOUSEHOLD. Only one claimant
16-1 per household per year is entitled to relief under this chapter.
16-2 Payment of the claim for relief may be made payable to the husband
16-3 and wife as one claimant. The comptroller, upon written request,
16-4 may issue separate checks, to the husband and wife for one-half of
16-5 the relief provided the original check has not been issued or has
16-6 been returned. Individuals related as husband and wife who were
16-7 married during the year may elect to file a joint claim which shall
16-8 include each spouse's income, rent constituting property taxes, and
16-9 property taxes payable. Husbands and wives who were married for
16-10 the entire year and were domiciled in the same household for the
16-11 entire year must file a joint claim. The maximum dollar amount
16-12 allowable for a joint claim shall not exceed the amount that one
16-13 person could receive.
16-14 Sec. 50.09. PROOF OF CLAIM. (a) Every claimant shall
16-15 supply to the comptroller, in support of the claim, proof of
16-16 eligibility under this chapter, including but not limited to amount
16-17 of rent paid or property taxes accrued, name and address of owner
16-18 or managing agent of property rented, changes in homestead,
16-19 household membership, household income, size and nature of property
16-20 claimed as a homestead.
16-21 (b) Disabled persons filing claims shall submit proof of
16-22 disability in the form and manner as the comptroller may prescribe.
16-23 The department may require examination and certification by the
16-24 claimant's physician or by a physician designated by the
16-25 comptroller. The cost of any examination shall be borne by the
16-26 claimant, unless the examination proves the disability, in which
16-27 case the cost of the examination shall be borne by the department.
16-28 (c) A determination of disability of a claimant by the
16-29 social security administration under Title II or Title XVI of the
16-30 Social Security Act shall constitute presumptive proof of
17-1 disability.
17-2 Sec. 50.10. PROOF OF TAXES PAID. Every claimant who files a
17-3 claim for relief for property taxes payable shall include with the
17-4 claim a property tax statement or a reproduction thereof in a form
17-5 deemed satisfactory by the comptroller indicating that there are no
17-6 delinquent property taxes on the homestead. Indication on the
17-7 property tax statement from the county treasurer that there are no
17-8 delinquent taxes on the homestead shall be sufficient proof.
17-9 Sec. 50.11. ASSIGNMENT OF REFUND. The comptroller shall not
17-10 honor an assignment by the claimant to another person or entity of
17-11 a property tax refund prior to the refund check being presented to
17-12 the claimant.
17-13 Sec. 50.12. PROPERTY TAX STATEMENT. The county tax
17-14 assessor-collector shall prepare and send a sufficient number of
17-15 copies of the property tax statement to the owner, and to the
17-16 owner's escrow agent if the taxes are paid via an escrow account,
17-17 to enable the owner to comply with the filing requirements of this
17-18 chapter and to retain one copy as a record. The property tax
17-19 statement, in a form prescribed by the comptroller, shall indicate
17-20 the manner in which the claimant may claim relief from the state
17-21 and the amount of the tax for which the applicant may claim relief.
17-22 The statement shall also indicate if there are delinquent property
17-23 taxes on the property in the preceding year.
17-24 Sec. 50.13. CLAIM APPLIED AGAINST OUTSTANDING LIABILITY.
17-25 The amount of any claim otherwise payable under this chapter may be
17-26 applied by the comptroller against any delinquent tax liability of
17-27 the claimant or spouse of the claimant payable to the state.
17-28 Sec. 50.14. CLAIM BY SURVIVING SPOUSE OR DEPENDENT. If a
17-29 person entitled to relief under this chapter dies prior to
17-30 receiving relief, the surviving spouse or dependent of the person
18-1 shall be entitled to file the claim and receive relief. If there
18-2 is no surviving spouse or dependent, the right to the credit shall
18-3 lapse.
18-4 Sec. 50.15. CLAIMANT CANNOT BE LOCATED. If the comptroller
18-5 cannot locate the claimant within two years from the date the
18-6 original warrant was issued, or if a claimant to whom a warrant has
18-7 been issued does not cash that warrant within two years from the
18-8 date the warrant was issued, the right to the credit shall lapse
18-9 and the warrant shall be deposited in the general fund.
18-10 Sec. 50.16. RIGHT TO RECEIVE REFUND NOT PERSON TO CLAIMANT.
18-11 Property tax refunds paid as a deduction on the property tax
18-12 statement of the property as provided in sec. The right to receive
18-13 the deduction is not person to the claimant or to a surviving
18-14 spouse or dependent of the claimant.
18-15 Sec. 50.17. OWNER OR MANAGING AGENT TO FURNISH RENT
18-16 CERTIFICATE. (a) The owner or managing agent of any property for
18-17 which rent is paid for occupancy as a homestead must furnish a
18-18 certificate of rent constituting property tax to a person who is a
18-19 renter on December 31, in the form prescribed by the comptroller.
18-20 If the renter moves before December 31, the owner or managing agent
18-21 may give the certificate to the renter at the time of moving, or
18-22 mail the certificate to the forwarding address if an address has
18-23 been provided by the renter. The certificate must be made
18-24 available to the renter before February 1 of the year following the
18-25 year in which the rent was paid. The owner or managing agent must
18-26 retain a duplicate of each certificate or an equivalent record
18-27 showing the same information for a period of three years. The
18-28 duplicate or other record must be made available to the
18-29 commissioner upon request.
18-30 (b) The certificate of rent constituting property taxes must
19-1 include the address of the property, including the county, and the
19-2 property tax parcel identification number and any additional
19-3 information that the commissioner determines is appropriate.
19-4 (c) If the owner or managing agent fails to provide the
19-5 renter with a certificate of rent constituting property taxes, the
19-6 comptroller shall allocate the net tax on the building to the unit
19-7 on a square footage basis or other appropriate basis as the
19-8 commissioner determines. The renter shall supply the comptroller
19-9 with a statement from the county tax assessor-collector that gives
19-10 the amount of property tax on the parcel, the address and property
19-11 tax parcel identification number of the property, and the number of
19-12 units in the building.
19-13 (d) By February 1 of the year following the year in which
19-14 the rent was collected, each owner or managing agent shall report
19-15 to the comptroller on a form prescribed by the comptroller the net
19-16 tax pertaining to the rental residential part of the property, the
19-17 total scheduled rent, and the fraction computed under Section
19-18 50.03(j). A copy of the property tax statement for taxes payable
19-19 in that year must be attached.
19-20 Sec. 50.18. RULES. The comptroller shall promulgate rules
19-21 which the comptroller deems appropriate for the administration of
19-22 this chapter and shall also make available forms with instructions
19-23 for claimants as the comptroller deems necessary for the proper
19-24 administration of this chapter. The claim shall be in the form the
19-25 comptroller may prescribe.
19-26 Sec. 50.19. APPROPRIATION. There is appropriated from the
19-27 general fund to the comptroller the amount necessary to make the
19-28 payments required under this chapter.
19-29 Sec. 50.20. VERIFICATION OF SOCIAL SECURITY NUMBERS. (a)
19-30 Annually, the comptroller shall furnish a list to the county
20-1 assessor containing the names and social security numbers of
20-2 persons who have applied for both homestead classification and a
20-3 property tax refund as a renter under this chapter.
20-4 (b) Within 90 days of the notification, the county tax
20-5 assessor-collector shall investigate to determine if the homestead
20-6 classification was improperly claimed. If the property owner does
20-7 not qualify, the county tax assessor-collector shall notify the
20-8 county auditor who will determine the amount of homestead benefits
20-9 that has been improperly allowed. The county auditor shall send a
20-10 notice to persons who owned the affected property at the time the
20-11 homestead application related to the improper homestead was filed,
20-12 demanding reimbursement of the homestead benefits plus a penalty
20-13 equal to 100 percent of the homestead benefits. The person
20-14 notified may appeal the county's determination with district court
20-15 within 60 days of the date of the notice from the county auditor.
20-16 (c) If the amount of homestead benefits and penalty is not
20-17 paid within 60 days, and if no appeal has been filed, the county
20-18 auditor shall certify the amount of taxes and penalty to the county
20-19 treasurer. The county treasurer will add interest to the unpaid
20-20 homestead benefits and penalty amounts at the rate provided for
20-21 delinquent personal property taxes for the period beginning 60 days
20-22 after demand for payment was made until payment. If the person
20-23 notified is the current owner of the property, the county treasurer
20-24 may add the total amount of benefits, penalty, interest, and costs
20-25 to the real estate taxes otherwise payable on the property in the
20-26 following year. If the person notified is not the current owner of
20-27 the property, the treasurer may collect the amounts and enforce
20-28 payment of the benefits, penalty, interest, and costs, as if those
20-29 amounts were delinquent tax obligations of the person who owned the
20-30 property at the time the application related to the improperly
21-1 allowed homestead was filed. The county treasurer may relieve a
21-2 prior owner of personal liability for the benefits, penalty,
21-3 interest, and costs, and instead extend those amounts on the tax
21-4 lists against the property for taxes payable in the following year
21-5 to the extent that the current owner agrees in writing.
21-6 (d) Any amount of homestead benefits recovered by the county
21-7 from the property owner shall be distributed to the county, city or
21-8 town, and school district where the property is located in the same
21-9 proportion that each taxing district's levy was to the total of the
21-10 three taxing districts' levy for the current year. The total
21-11 amount of penalty collected must be deposited in the county general
21-12 fund.
21-13 Sec. 50.21. ROUNDING. In computing the dollar amount of
21-14 items on the property tax refund claim form and accompanying
21-15 schedules, items may be rounded off to the nearest whole dollar
21-16 amount, disregarding amounts of less than 50 cents and increasing
21-17 amounts of 50 cents to 99 cents to the next highest dollar.
21-18 SECTION 2. EFFECTIVE DATE. This Act takes effect January 1,
21-19 1998.
21-20 SECTION 3. EMERGENCY CLAUSE. The importance of this
21-21 legislation and the crowded condition of the calendars in both
21-22 houses create an emergency and an imperative public necessity that
21-23 the constitutional rule requiring bills to be read on three several
21-24 days in each house be suspended, and this rule is hereby suspended.