By: Barrientos, Gallegos S.B. No. 1867
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to relief from residential ad valorem taxation.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Title 1, Tax Code, is amended by adding Subtitle G
1-4 to read as follows:
1-5 SUBTITLE G. PROPERTY TAX REFUND
1-6 CHAPTER 50. PROPERTY TAX REFUND
1-7 Sec. 50.01. SHORT TITLE. This chapter may be cited as the
1-8 "Circuitbreaker Property Tax Refund Act of 1997."
1-9 Sec. 50.02. PURPOSE. The purpose of this chapter is to
1-10 provide property tax relief to persons who own or rent their
1-11 homesteads.
1-12 Sec. 50.03. MEANING OF TERMS. In this chapter:
1-13 (a) "Comptroller" means the comptroller of public accounts
1-14 of the state of Texas.
1-15 (b)(1) "Income" means the sum of the following:
1-16 (A) federal adjusted gross income as defined in
1-17 the Internal Revenue Code; and
1-18 (B) the sum of the following amounts to the
1-19 extent not included in (A) above:
1-20 (i) all nontaxable income;
1-21 (ii) the amount of a passive activity loss
2-1 that is not disallowed as a result of section 469, paragraph (i) or
2-2 (m) of the Internal Revenue Code and the amount of passive activity
2-3 loss carryover allowed under section 469(b) of the Internal Revenue
2-4 Code;
2-5 (iii) an amount equal to the total of any
2-6 discharge of qualified indebtedness of a solvent individual
2-7 excluded from gross income under section 108(g) of the Internal
2-8 Revenue Code;
2-9 (iv) cash assistance and relief;
2-10 (v) any pension or annuity (including
2-11 railroad retirement benefits, all payments received under the
2-12 federal Social Security Act, supplemental security income, and
2-13 veterans benefits) which was not exclusively funded by the claimant
2-14 or spouse, or which was funded exclusively by the claimant or
2-15 spouse and which funding payments were excluded from federal
2-16 adjusted gross income in the years when the payments were made;
2-17 (vi) interest received from the federal or
2-18 state government or any instrumentality or political subdivision
2-19 thereof;
2-20 (vii) workers' compensation;
2-21 (viii) nontaxable strike benefits;
2-22 (ix) the gross amounts of payments
2-23 received in the nature of disability income or sick pay as the
2-24 result of accident, sickness, or other disability, whether funded
2-25 through insurance or otherwise;
3-1 (x) a lump sum distribution under section
3-2 402(e)(3) of the Internal Revenue Code;
3-3 (xi) contributions made by the claimant to
3-4 an individual retirement account, including a qualified voluntary
3-5 employee contribution; simplified employee pension plan;
3-6 self-employed retirement plan; cash or deferred arrangement plan
3-7 under section 401(k) of the Internal Revenue Code or deferred
3-8 compensation plan under section 457 of the Internal Revenue Code;
3-9 and
3-10 (xii) nontaxable scholarship or fellowship
3-11 grants.
3-12 (2) "Income" does not include:
3-13 (A) amount excluded pursuant to sections 101(a),
3-14 102 and 121 of the Internal Revenue Code;
3-15 (B) amounts of any pension or annuity which was
3-16 exclusively funded by the claimant or spouse and which funding
3-17 payments were not excluded from federal adjusted gross income in
3-18 the years the payments were made;
3-19 (C) surplus food or other relief in kind
3-20 supplied by a governmental agency;
3-21 (D) relief granted under this chapter; or
3-22 (E) child support payments received under a
3-23 temporary or final decree of divorce.
3-24 (3) The sum of the following amounts may be subtracted
3-25 from income:
4-1 (A) for the claimant's first dependent, the
4-2 exemption amount multiplied by 1.4;
4-3 (B) for the claimant's second dependent, the
4-4 exemption amount multiplied by 1.3;
4-5 (C) for the claimant's third dependent, the
4-6 exemption amount multiplied by 1.2;
4-7 (D) for the claimant's fourth dependent, the
4-8 exemption amount multiplied by 1.1;
4-9 (E) for the claimant's fifth dependent, the
4-10 exemption amount; and
4-11 (F) if the claimant or the claimant's spouse was
4-12 disabled or attained the age of 65 on or before December 31 of the
4-13 year for which the taxes were levied or rent paid, the exemption
4-14 amount.
4-15 (4)(A) For the purposes of this subsection, in the
4-16 case of an individual who files an income tax return on a fiscal
4-17 year basis, the term "federal adjusted gross income" shall mean
4-18 federal adjusted gross income elected in the fiscal year ending in
4-19 the calendar year. Federal adjusted gross income shall not be
4-20 reduced by the amount of a net operating loss carryback or
4-21 carryforward or a capital loss carryback or carryforward allowed
4-22 for the year.
4-23 (B) For the purposes of this subsection, the
4-24 "exemption amount" means the exemption amount under section 151(d)
4-25 of the Internal Revenue Code for the taxable year for which the
5-1 income is reported.
5-2 (c) "Household" means a claimant and an individual related
5-3 to the claimant as husband or wife who are domiciled in the same
5-4 homestead.
5-5 (d) "Household income" means all income received by the
5-6 persons of a household in a calendar year while members of the
5-7 household, other than income of a dependent.
5-8 (e) "Homestead" has the same meaning as defined by Sec.
5-9 41.002, Property Code.
5-10 (f) "Dependent" means any person who is considered a
5-11 dependent under sections 151 and 152 of the Internal Revenue Code.
5-12 In the case of a son, stepson, daughter, stepdaughter of the
5-13 claimant, amounts received as an aid to families with dependent
5-14 children grant, allowance to or on behalf of the child, surplus
5-15 food, or other relief in kind supplied by a governmental agency
5-16 must not be taken into account in determining whether the child
5-17 received more than half of the child's support from the claimant.
5-18 (g)(1) "Claimant" means a person, other than a dependent, as
5-19 defined under sections 151 and 152 of the Internal Revenue Code
5-20 disregarding section 152(b)(3) of the Internal Revenue Code, who
5-21 filed a claim authorized by this chapter and who was a resident of
5-22 this state during the calendar year for which the claim for relief
5-23 was filed.
5-24 (2) In the case of a claim relating to rent
5-25 constituting property taxes, the claimant shall have resided in a
6-1 rented or leased unit on which ad valorem taxes or payments made in
6-2 lieu of ad valorem taxes, including payments of special assessments
6-3 imposed in lieu of ad valorem taxes, are payable at some time
6-4 during the calendar year covered by the claim.
6-5 (3) "Claimant" shall not include a resident of a
6-6 nursing home, intermediate care facility, or long-term residential
6-7 facility whose rent constituting property taxes is paid pursuant to
6-8 the supplemental security income program under title XVI of the
6-9 Social Security Act, the medical assistance program pursuant to
6-10 title XIX of the Social Security Act. If only a portion of the rent
6-11 constituting property taxes is paid by these programs, the resident
6-12 shall be a claimant for purposes of this chapter, but the refund
6-13 calculated pursuant to Sec. 50.04 shall be multiplied by a
6-14 fraction, the numerator of which is income as defined herein,
6-15 reduced by the total amount of income from the above sources other
6-16 than vendor payments under the medical assistance program and the
6-17 denominator of which is income as defined herein, plus vendor
6-18 payments under the medical assistance program, to determine the
6-19 allowable refund pursuant to this chapter.
6-20 (4) Notwithstanding (3) above, if the claimant was a
6-21 resident of the nursing home, intermediate care facility or
6-22 long-term residential facility for only a portion of the calendar
6-23 year covered by the claim, the claimant may compute rent
6-24 constituting property taxes by disregarding the rent constituting
6-25 property taxes from the nursing home, intermediate care facility,
7-1 or long-term residential facility and use only that amount of rent
7-2 constituting property taxes or property taxes payable relating to
7-3 that portion of the year when the claimant was not in the facility.
7-4 The claimant's household income is the income for the entire
7-5 calendar year covered by the claim.
7-6 (5) In the case of a claim for rent constituting
7-7 property taxes of a part-year Texas resident, the income and rental
7-8 reflected in this computation shall be for the period of Texas
7-9 residency only. Any rental expenses paid which may be reflected in
7-10 arriving at federal adjusted gross income cannot be utilized for
7-11 this computation. When two individuals of a household are able to
7-12 meet the qualifications for a claimant, they may determine among
7-13 them as to who the claimant shall be. If they are unable to agree,
7-14 the matter shall be referred to the comptroller whose decision
7-15 shall be final. If a homestead property owner was a part-year
7-16 Texas resident, the income reflected in the computation made
7-17 pursuant to Sec. 50.04 shall be for the entire calendar year,
7-18 including income not assignable to Texas.
7-19 (6) If a homestead is occupied by two or more renters,
7-20 who are not husband and wife, the rent shall be deemed to be paid
7-21 equally by each, and separate claims shall be filed by each. The
7-22 income of each shall be each renter's household income for purposes
7-23 of computing the amount of credit to be allowed.
7-24 (h) "Disabled claimant" means any claimant who has a
7-25 disability.
8-1 (i) "Disability" means:
8-2 (1) Inability to engage in any substantial gainful
8-3 activity by reason of any medically determinable physical or mental
8-4 impairment which can be expected to result in death or has lasted
8-5 or can be expected to last for a continuous period of not less than
8-6 12 months; or
8-7 (2) Blindness; and the term "blindness" means central
8-8 acuity of 20/200 or less in the better eye with the use of a
8-9 correcting lens. An eye which is accompanied by a limitation in
8-10 the fields of vision such that the widest diameter of the visual
8-11 field subtends an angle no greater than 20 degrees shall be
8-12 considered as having a central visual acuity of 20/200 or less.
8-13 (3) An individual shall be determined to be under a
8-14 disability only if the physical or mental impairment or impairments
8-15 are of such severity that the individual is not only unable to do
8-16 previous work but cannot, considering age, education, and work
8-17 experience, engage in any other kind of substantial gainful work
8-18 which exists in the state economy, regardless of whether the work
8-19 exists in the immediate area of residence, or whether a specific
8-20 job vacancy exists for the individual, or whether the individual
8-21 would be hired on applying for work. For purposes of the preceding
8-22 sentence, "work which exists in the state economy" means work which
8-23 exists in significant numbers either in the area where the
8-24 individual lives or in several areas of the state.
8-25 (4) A "physical or mental impairment" is an impairment
9-1 that results from anatomical, physiological, or psychological
9-2 abnormalities which are demonstrable by medically acceptable
9-3 clinical and laboratory diagnostic techniques.
9-4 (j) "Rent constituting property taxes" means the amount of
9-5 gross rent actually paid in cash, or its equivalent, which is
9-6 attributable either to the property tax paid on the unit or to the
9-7 amount paid in lieu of property taxes, in any calendar year by a
9-8 claimant for the right of occupancy of the claimant's Texas
9-9 homestead in the calendar year, and which rent constitutes the
9-10 basis, in the succeeding calendar year of a claim for relief under
9-11 this chapter by the claimant. The amount of rent attributable to
9-12 property taxes paid or payments in lieu made on the unit shall be
9-13 determined by multiplying the gross rent paid by the claimant for
9-14 the calendar year for the unit by a fraction, the numerator of
9-15 which is the net tax on the property where the unit is located and
9-16 the denominator of which is the total scheduled rent. In no case
9-17 may the rent constituting property taxes exceed 50 percent of the
9-18 gross rent paid by the claimant during that calendar year. In the
9-19 case of a claimant who resides in a unit for which either a rent
9-20 subsidy is paid to, or for, the claimant based on the income of the
9-21 claimant or the claimant's family, or a subsidy is paid to a public
9-22 housing authority that owns or operates the claimant's rental unit,
9-23 pursuant to 42 U.S.C. Sec. 1437c, 20 percent of gross rent actually
9-24 paid in cash or its equivalent shall be the claimant's "rent
9-25 constituting property taxes paid." For purposes of this
10-1 subsection, "rent subsidy" does not include any housing assistance
10-2 received under aid to families with dependent children, general
10-3 assistance, supplemental security income, or similar income
10-4 maintenance programs.
10-5 (k) "Gross rent" means rental paid for the right of
10-6 occupancy, at arms-length, of a homestead, exclusive of charges for
10-7 any medical services furnished by the landlord as a part of the
10-8 rental agreement, whether expressly set out in the rental agreement
10-9 or not. If the landlord and tenant have not dealt with each other
10-10 at arms-length and the comptroller determines that the gross rent
10-11 charged was excessive, the comptroller may adjust the gross rent to
10-12 a reasonable amount for purposes of this chapter.
10-13 (l) "Total scheduled rent" means the sum of the monthly
10-14 rents assigned to the residential rental units in the property
10-15 multiplied by 12. The assigned rents are the rents effective on
10-16 April 15 for taxes payable in 1998 and thereafter. The rents must
10-17 be an arm's-length rental, including garage rents if any, but not
10-18 including charges for medical services furnished by the landlord as
10-19 a part of the rental agreement. In determining total scheduled
10-20 rent, no deduction is allowed for vacant units, uncollected rent,
10-21 or reduced cash rents in units occupied by employees or agents of
10-22 the owner.
10-23 (m) "Property taxes payable" means the property tax
10-24 exclusive of special assessments, penalties, and interest payable
10-25 on a claimant's homestead in any calendar year. In the case of a
11-1 claimant who makes ground lease payments, "property taxes payable"
11-2 includes the amount of the payments directly attributable to the
11-3 property taxes assessed against the parcel on which the house is
11-4 located. No apportionment or reduction of the "property taxes
11-5 payable" shall be required for the use of a portion of the
11-6 claimant's homestead for a business purpose if the claimant does
11-7 not deduct any business depreciation expenses for the use of a
11-8 portion of the homestead in the determination of federal adjusted
11-9 gross income. The amount attributable to property taxes shall be
11-10 determined by multiplying the net tax on the parcel by a fraction,
11-11 the numerator of which is the gross rent paid for the calendar year
11-12 for the site and the denominator of which is the gross rent paid
11-13 for the calendar year for the parcel. When a homestead is owned by
11-14 two or more persons as joint tenants or tenants in common, such
11-15 tenants shall determine between them which tenant may claim the
11-16 property taxes payable on the homestead. If they are unable to
11-17 agree, the matter shall be referred to the comptroller whose
11-18 decision shall be final. Property taxes are considered payable in
11-19 the year prescribed by law for payment of the taxes.
11-20 In the case of a claim relating to "property taxes payable,"
11-21 the claimant must have owned and occupied the homestead on January
11-22 2 of the year in which the tax is payable and either the property
11-23 must have been classified as homestead property on or before
11-24 December 15 of the assessment year to which the "property taxes
11-25 payable" relate; or the claimant must provide documentation from
12-1 the county tax assessor-collector that application for homestead
12-2 classification has been made on or before December 15 of the year
12-3 in which the "property taxes payable" were payable and that the
12-4 assessor has approved the application.
12-5 (n) "Net tax" means:
12-6 (1) the property tax, exclusive of special
12-7 assessments, interest, and penalties, or
12-8 (2) the payments made in lieu of ad valorem taxes,
12-9 including payments of special assessments imposed in lieu of ad
12-10 valorem taxes, for the calendar year in which the rent was paid.
12-11 If a portion of the property is occupied as a homestead or is used
12-12 for other than rental purposes, the net tax shall be the amount of
12-13 tax reduced by the percentage that the nonrental use comprises of
12-14 the total square footage of the building. If a portion of the
12-15 property is used for purposes other than for residential rental and
12-16 none of the property is occupied as a homestead, the net tax shall
12-17 be the amount of the tax of the parcel multiplied by a fraction,
12-18 the numerator of which is the net tax capacity of the residential
12-19 rental portion and the denominator of which is the total net tax
12-20 capacity of the parcel. If a portion of the property is used for
12-21 other than rental residential purposes, the tax assessor-collector
12-22 shall list on the property tax statement the amount of net tax
12-23 pertaining to the rental residential portion of the property.
12-24 The amount of the net tax shall not be reduced by an
12-25 abatement or a court ordered reduction in the property tax on the
13-1 property made after the certificate of rent constituting property
13-2 tax has been provided to the renter.
13-3 (o) "Internal Revenue Code" means the Internal Revenue Code
13-4 of 1986.
13-5 Sec. 50.04. REFUND ALLOWABLE. (a) REFUND ALLOWED. A
13-6 refund shall be allowed each claimant in the amount that property
13-7 taxes payable or rent constituting property taxes exceed the
13-8 percentage of the household income of the claimant specified in
13-9 Subsection (b) or (c) in the year for which the taxes were levied
13-10 or in the year in which the rent was paid as specified in
13-11 Subsection (b) or (c). If the amount of property taxes payable or
13-12 rent constituting property taxes is equal to or less than the
13-13 percentage of the household income of the claimant specified in
13-14 Subsection (b) or (c) in the year for which the taxes were levied
13-15 or in the year in which the rent was paid, the claimant shall not
13-16 be eligible for a state refund pursuant to this section.
13-17 (b) HOMEOWNER'S REFUND. A claimant whose property taxes
13-18 payable are in excess of the percentage of the household income
13-19 stated below shall pay an amount equal to the percent of income
13-20 shown for the appropriate household income level along with the
13-21 percent to be paid by the claimant of the remaining amount of
13-22 property taxes payable. The state refund equals the amount of
13-23 property taxes payable that remain, up to the state refund amount
13-24 shown below:
14-1 Percent Percent Maximum
14-2 Household Income of Income Paid by State
14-3 Claimant Refund
14-4 $0 to 1,029 1.2 percent 18 percent $440
14-5 1,030 to 2,059 1.3 percent 18 percent $440
14-6 2,060 to 3,099 1.4 percent 20 percent $440
14-7 3,100 to 4,129 1.6 percent 20 percent $440
14-8 4,130 to 5,159 1.7 percent 20 percent $440
14-9 5,160 to 7,229 1.9 percent 25 percent $440
14-10 7,230 to 8,259 2.1 percent 25 percent $440
14-11 8,260 to 9,289 2.2 percent 25 percent $440
14-12 9,290 to 10,319 2.3 percent 30 percent $440
14-13 10,320 to 11,349 2.4 percent 30 percent $440
14-14 11,350 to 12,389 2.5 percent 30 percent $440
14-15 12,390 to 14,449 2.6 percent 30 percent $440
14-16 14,450 to 15,479 2.8 percent 35 percent $440
14-17 15,480 to 16,509 3.0 percent 35 percent $440
14-18 16,510 to 17,549 3.2 percent 40 percent $440
14-19 17,550 to 21,669 3.3 percent 40 percent $440
14-20 21,670 to 24,769 3.4 percent 45 percent $440
14-21 24,770 to 30,959 3.5 percent 45 percent $440
14-22 30,960 to 36,119 3.5 percent 45 percent $440
14-23 36,120 to 41,279 3.7 percent 50 percent $440
14-24 41,280 to 58,829 4.0 percent 50 percent $440
14-25 58,830 to 59,859 4.0 percent 50 percent $310
15-1 59,860 to 60,889 4.0 percent 50 percent $210
15-2 60,890 to 61,929 4.0 percent 50 percent $100
15-3 The payment made to a claimant shall be the amount of the
15-4 state refund calculated under this subdivision. No payment is
15-5 allowed if the claimant's household income is $61,930 or more.
15-6 (c) RENTER'S REFUND. A claimant whose rent constituting
15-7 property taxes exceeds the percentage of the household income
15-8 stated below must pay an amount equal to the percent of income
15-9 shown for the appropriate household income level along with the
15-10 percent to be paid by the claimant of the remaining amount of rent
15-11 constituting property taxes. The state refund equals the amount of
15-12 rent constituting property taxes that remain, up to the maximum
15-13 state refund amount shown below:
15-14 Percent Percent Maximum
15-15 Household Income of Income Paid by State
15-16 Claimant Refund
15-17 $0 to 3,099 1.0 percent 5 percent $1,030
15-18 3,100 to 4,129 1.0 percent 10 percent $1,030
15-19 4,130 to 5,159 1.1 percent 10 percent $1,030
15-20 5,160 to 7,229 1.2 percent 10 percent $1,030
15-21 7,230 to 9,289 1.3 percent 15 percent $1,030
15-22 9,290 to 10,319 1.4 percent 15 percent $1,030
15-23 10,320 to 11,349 1.4 percent 20 percent $1,030
15-24 11,350 to 13,419 1.5 percent 20 percent $1,030
15-25 13,420 to 14,449 1.6 percent 20 percent $1,030
16-1 14,450 to 15,479 1.7 percent 25 percent $1,030
16-2 15,480 to 17,549 1.8 percent 25 percent $1,030
16-3 17,550 to 18,579 1.9 percent 30 percent $1,030
16-4 18,580 to 19,609 2.0 percent 30 percent $1,030
16-5 19,610 to 20,639 2.2 percent 30 percent $1,030
16-6 20,640 to 21,669 2.4 percent 30 percent $1,030
16-7 21,670 to 22,709 2.6 percent 35 percent $1,030
16-8 22,710 to 23,739 2.7 percent 35 percent $1,030
16-9 23,740 to 24,769 2.8 percent 35 percent $1,030
16-10 24,770 to 25,799 2.9 percent 40 percent $1,030
16-11 25,800 to 26,839 3.0 percent 40 percent $1,030
16-12 26,840 to 27,869 3.1 percent 40 percent $1,030
16-13 27,870 to 28,899 3.2 percent 40 percent $1,030
16-14 28,900 to 29,929 3.3 percent 45 percent $ 930
16-15 29,930 to 30,959 3.4 percent 45 percent $ 830
16-16 30,960 to 31,999 3.5 percent 45 percent $ 720
16-17 32,000 to 33,029 3.5 percent 50 percent $ 620
16-18 33,030 to 34,059 3.5 percent 50 percent $ 520
16-19 34,060 to 35,089 3.5 percent 50 percent $ 310
16-20 35,090 to 36,119 3.5 percent 50 percent $ 100
16-21 The payment made to a claimant is the amount of the state
16-22 refund calculated under this subdivision. No payment is allowed if
16-23 the claimant's household income is $36,120 or more.
16-24 (d) PUBLISHING OF TABLES. The comptroller shall construct
16-25 and make available to taxpayers a comprehensive table showing the
17-1 property taxes to be paid and refund allowed at various levels of
17-2 income and assessment. The table shall follow the schedule of
17-3 income percentages, maximums and other provisions specified in
17-4 Subsections (b) and (c) except that the comptroller may graduate
17-5 the transition between income brackets. All refunds shall be
17-6 computed in accordance with tables prepared and issued by the
17-7 comptroller.
17-8 (e) COMBINED RENTER AND HOMEOWNER REFUND. In the case of a
17-9 claimant who is entitled to a refund in a calendar year for claims
17-10 based both on rent constituting property taxes and property taxes
17-11 payable, the refund allowable equals the sum of the refunds
17-12 allowable.
17-13 Sec. 50.05. COMBINED HOUSEHOLD INCOME. (a) If a person
17-14 occupies a homestead with another person or persons not related to
17-15 the person as husband and wife, excluding dependents, roomers or
17-16 boarders on contract, and has property tax payable with respect to
17-17 the homestead, the household income of the claimant or claimants
17-18 for the purpose of computing the refund allowed by Sec. 50.04 shall
17-19 include the total income received by the other persons residing in
17-20 the homestead. For purposes of this section, "dependent" includes
17-21 a parent of the claimant or spouse who lives in the claimant's
17-22 homestead and does not have an ownership interest in the homestead.
17-23 (b) If a person occupies a homestead with another person or
17-24 persons not related as husband and wife or as dependents, the
17-25 property tax payable or rent constituting property tax shall be
18-1 reduced as follows: If the other person or persons are residing at
18-2 the homestead under rental or lease agreement, the amount of
18-3 property tax payable or rent constituting property tax shall be
18-4 that portion not covered by the rental agreement.
18-5 Sec. 50.06. PUBLIC INFORMATION; NOTICE ON CLAIM FORM. The
18-6 property tax refund claim form must contain a statement notifying
18-7 claimants that the property tax refund amount is public data, and
18-8 that it will appear on the property tax statement and on other
18-9 records.
18-10 Sec. 50.07. TIME FOR PAYMENT. (a) Allowable claims filed
18-11 pursuant to the provisions of this chapter and the refund under
18-12 section 50.04 shall be paid by the comptroller from the general
18-13 fund as provided in this section.
18-14 (b) A claimant who is a renter shall receive full payment
18-15 after August 1 and before August 15 or 60 days after receipt of the
18-16 application, whichever is later.
18-17 (c) Payment of a refund is made as deduction on the property
18-18 tax statement for the homestead for taxes payable the following
18-19 year.
18-20 (d) Annually on or before July 20, the comptroller shall pay
18-21 the amount of the property tax refunds under section 50.04 to the
18-22 county treasurer for settlement and distribution.
18-23 Sec. 50.08. ONE CLAIMANT PER HOUSEHOLD. Only one claimant
18-24 per household per year is entitled to relief under this chapter.
18-25 Payment of the claim for relief may be made payable to the husband
19-1 and wife as one claimant. The comptroller, upon written request,
19-2 may issue separate checks, to the husband and wife for one-half of
19-3 the relief provided the original check has not been issued or has
19-4 been returned. Individuals related as husband and wife who were
19-5 married during the year may elect to file a joint claim which shall
19-6 include each spouse's income, rent constituting property taxes, and
19-7 property taxes payable. Husbands and wives who were married for
19-8 the entire year and were domiciled in the same household for the
19-9 entire year must file a joint claim. The maximum dollar amount
19-10 allowable for a joint claim shall not exceed the amount that one
19-11 person could receive.
19-12 Sec. 50.09. PROOF OF CLAIM. (a) Every claimant shall
19-13 supply to the comptroller, in support of the claim, proof of
19-14 eligibility under this chapter, including but not limited to amount
19-15 of rent paid or property taxes accrued, name and address of owner
19-16 or managing agent of property rented, changes in homestead,
19-17 household membership, household income, size and nature of property
19-18 claimed as a homestead.
19-19 (b) Disabled persons filing claims shall submit proof of
19-20 disability in the form and manner as the comptroller may prescribe.
19-21 The department may require examination and certification by the
19-22 claimant's physician or by a physician designated by the
19-23 comptroller. The cost of any examination shall be borne by the
19-24 claimant, unless the examination proves the disability, in which
19-25 case the cost of the examination shall be borne by the department.
20-1 (c) A determination of disability of a claimant by the
20-2 social security administration under Title II or Title XVI of the
20-3 Social Security Act shall constitute presumptive proof of
20-4 disability.
20-5 Sec. 50.10. PROOF OF TAXES PAID. Every claimant who files a
20-6 claim for relief for property taxes payable shall include with the
20-7 claim a property tax statement or a reproduction thereof in a form
20-8 deemed satisfactory by the comptroller indicating that there are no
20-9 delinquent property taxes on the homestead. Indication on the
20-10 property tax statement from the county treasurer that there are no
20-11 delinquent taxes on the homestead shall be sufficient proof.
20-12 Sec. 50.11. ASSIGNMENT OF REFUND. The comptroller shall not
20-13 honor an assignment by the claimant to another person or entity of
20-14 a property tax refund prior to the refund check being presented to
20-15 the claimant.
20-16 Sec. 50.12. PROPERTY TAX STATEMENT. The county tax
20-17 assessor-collector shall prepare and send a sufficient number of
20-18 copies of the property tax statement to the owner, and to the
20-19 owner's escrow agent if the taxes are paid via an escrow account,
20-20 to enable the owner to comply with the filing requirements of this
20-21 chapter and to retain one copy as a record. The property tax
20-22 statement, in a form prescribed by the comptroller, shall indicate
20-23 the manner in which the claimant may claim relief from the state
20-24 and the amount of the tax for which the applicant may claim relief.
20-25 The statement shall also indicate if there are delinquent property
21-1 taxes on the property in the preceding year.
21-2 Sec. 50.13. CLAIM APPLIED AGAINST OUTSTANDING LIABILITY.
21-3 The amount of any claim otherwise payable under this chapter may be
21-4 applied by the comptroller against any delinquent tax liability of
21-5 the claimant or spouse of the claimant payable to the state.
21-6 Sec. 50.14. CLAIM BY SURVIVING SPOUSE OR DEPENDENT. If a
21-7 person entitled to relief under this chapter dies prior to
21-8 receiving relief, the surviving spouse or dependent of the person
21-9 shall be entitled to file the claim and receive relief. If there
21-10 is no surviving spouse or dependent, the right to the credit shall
21-11 lapse.
21-12 Sec. 50.15. CLAIMANT CANNOT BE LOCATED. If the comptroller
21-13 cannot locate the claimant within two years from the date the
21-14 original warrant was issued, or if a claimant to whom a warrant has
21-15 been issued does not cash that warrant within two years from the
21-16 date the warrant was issued, the right to the credit shall lapse
21-17 and the warrant shall be deposited in the general fund.
21-18 Sec. 50.16. RIGHT TO RECEIVE REFUND NOT PERSON TO CLAIMANT.
21-19 Property tax refunds paid as a deduction on the property tax
21-20 statement of the property as provided in sec. The right to receive
21-21 the deduction is not person to the claimant or to a surviving
21-22 spouse or dependent of the claimant.
21-23 Sec. 50.17. OWNER OR MANAGING AGENT TO FURNISH RENT
21-24 CERTIFICATE. (a) The owner or managing agent of any property for
21-25 which rent is paid for occupancy as a homestead must furnish a
22-1 certificate of rent constituting property tax to a person who is a
22-2 renter on December 31, in the form prescribed by the comptroller.
22-3 If the renter moves before December 31, the owner or managing agent
22-4 may give the certificate to the renter at the time of moving, or
22-5 mail the certificate to the forwarding address if an address has
22-6 been provided by the renter. The certificate must be made
22-7 available to the renter before February 1 of the year following the
22-8 year in which the rent was paid. The owner or managing agent must
22-9 retain a duplicate of each certificate or an equivalent record
22-10 showing the same information for a period of three years. The
22-11 duplicate or other record must be made available to the
22-12 commissioner upon request.
22-13 (b) The certificate of rent constituting property taxes must
22-14 include the address of the property, including the county, and the
22-15 property tax parcel identification number and any additional
22-16 information that the commissioner determines is appropriate.
22-17 (c) If the owner or managing agent fails to provide the
22-18 renter with a certificate of rent constituting property taxes, the
22-19 comptroller shall allocate the net tax on the building to the unit
22-20 on a square footage basis or other appropriate basis as the
22-21 commissioner determines. The renter shall supply the comptroller
22-22 with a statement from the county tax assessor-collector that gives
22-23 the amount of property tax on the parcel, the address and property
22-24 tax parcel identification number of the property, and the number of
22-25 units in the building.
23-1 (d) By February 1 of the year following the year in which
23-2 the rent was collected, each owner or managing agent shall report
23-3 to the comptroller on a form prescribed by the comptroller the net
23-4 tax pertaining to the rental residential part of the property, the
23-5 total scheduled rent, and the fraction computed under Section
23-6 50.03(j). A copy of the property tax statement for taxes payable
23-7 in that year must be attached.
23-8 Sec. 50.18. RULES. The comptroller shall promulgate rules
23-9 which the comptroller deems appropriate for the administration of
23-10 this chapter and shall also make available forms with instructions
23-11 for claimants as the comptroller deems necessary for the proper
23-12 administration of this chapter. The claim shall be in the form the
23-13 comptroller may prescribe.
23-14 Sec. 50.19. APPROPRIATION. There is appropriated from the
23-15 general fund to the comptroller the amount necessary to make the
23-16 payments required under this chapter.
23-17 Sec. 50.20. VERIFICATION OF SOCIAL SECURITY NUMBERS.
23-18 (a) Annually, the comptroller shall furnish a list to the county
23-19 assessor containing the names and social security numbers of
23-20 persons who have applied for both homestead classification and a
23-21 property tax refund as a renter under this chapter.
23-22 (b) Within 90 days of the notification, the county tax
23-23 assessor-collector shall investigate to determine if the homestead
23-24 classification was improperly claimed. If the property owner does
23-25 not qualify, the county tax assessor-collector shall notify the
24-1 county auditor who will determine the amount of homestead benefits
24-2 that has been improperly allowed. The county auditor shall send a
24-3 notice to persons who owned the affected property at the time the
24-4 homestead application related to the improper homestead was filed,
24-5 demanding reimbursement of the homestead benefits plus a penalty
24-6 equal to 100 percent of the homestead benefits. The person
24-7 notified may appeal the county's determination with district court
24-8 within 60 days of the date of the notice from the county auditor.
24-9 (c) If the amount of homestead benefits and penalty is not
24-10 paid within 60 days, and if no appeal has been filed, the county
24-11 auditor shall certify the amount of taxes and penalty to the county
24-12 treasurer. The county treasurer will add interest to the unpaid
24-13 homestead benefits and penalty amounts at the rate provided for
24-14 delinquent personal property taxes for the period beginning 60 days
24-15 after demand for payment was made until payment. If the person
24-16 notified is the current owner of the property, the county treasurer
24-17 may add the total amount of benefits, penalty, interest, and costs
24-18 to the real estate taxes otherwise payable on the property in the
24-19 following year. If the person notified is not the current owner of
24-20 the property, the treasurer may collect the amounts and enforce
24-21 payment of the benefits, penalty, interest, and costs, as if those
24-22 amounts were delinquent tax obligations of the person who owned the
24-23 property at the time the application related to the improperly
24-24 allowed homestead was filed. The county treasurer may relieve a
24-25 prior owner of personal liability for the benefits, penalty,
25-1 interest, and costs, and instead extend those amounts on the tax
25-2 lists against the property for taxes payable in the following year
25-3 to the extent that the current owner agrees in writing.
25-4 (d) Any amount of homestead benefits recovered by the county
25-5 from the property owner shall be distributed to the county, city or
25-6 town, and school district where the property is located in the same
25-7 proportion that each taxing district's levy was to the total of the
25-8 three taxing districts' levy for the current year. The total
25-9 amount of penalty collected must be deposited in the county general
25-10 fund.
25-11 Sec. 50.21. ROUNDING. In computing the dollar amount of
25-12 items on the property tax refund claim form and accompanying
25-13 schedules, items may be rounded off to the nearest whole dollar
25-14 amount, disregarding amounts of less than 50 cents and increasing
25-15 amounts of 50 cents to 99 cents to the next highest dollar.
25-16 SECTION 2. EFFECTIVE DATE. This Act takes effect January 1,
25-17 1998.
25-18 SECTION 3. EMERGENCY CLAUSE. The importance of this
25-19 legislation and the crowded condition of the calendars in both
25-20 houses create an emergency and an imperative public necessity that
25-21 the constitutional rule requiring bills to be read on three several
25-22 days in each house be suspended, and this rule is hereby suspended.