SF 295 – “Main Street” Business property tax credit and fund
SF 445 – Transfer of Real Estate/Mortgage Release
SF 449 – Small Business Health Care Tax Credit
SF 450 – Interest rate cap on delayed deposit services
HF 630 – Hydroelectricity conversion property sales tax exemption
FLOOR ACTION:
SF 295 creates a business property tax credit for property taxes due and payable in fiscal years beginning on or after July 1, 2014. The credit will be available to commercial, industrial and railway properties. The bill establishes a business property tax credit fund. The bill appropriates $50 million in FY15 and each fiscal year thereafter from the General Fund to the Department of Revenue for deposit into the fund. For fiscal years after 2015, the fund will grow by $50 million each year the Revenue Estimating Conference certifies that the total amount of General Fund revenues has grown by at least 4 percent compared to the previous fiscal year, up to a total of $250 million per year. The bill provides that each person who wishes to claim a business property tax credit shall obtain forms from the assessor of their county and file the claim there. The bill is aimed at smaller businesses, and the credit would be similar to the homestead tax credit on residential parcels. [4/15: 29-21 (party-line, except Bertrand, Houser, Zaun “yes”)]
SF 445 relates to the transfer of real estate and the filing of a mortgage release certificate. The Mortgage Release Certificate Program was enacted in 1999 to provide a remedy for mortgages that are paid off, but not released of record or incorrectly released. The Title Guaranty Division at the Iowa Finance Authority administers this program. The overall intent of this bill is to simplify the Mortgage Release Certificate Program process and clarify program procedures. The bill assists Iowa homeowners in clearing the titles to their homes so they can be sold or refinance. The bill authorizes the Title Guarantee Division to charge a fee for services. [4/15: 50-0]
HF 630 exempts hydroelectricity conversion property from the state sales tax. This would be similar to the existing sales tax exemption for wind energy conversion property. [4/16: 50-0]
COMMITTEE ACTION:
SF 449 creates small business tax credit to help offset the costs of health insurance premiums made by small employers on behalf of its employees. Currently the federal Patient Protection and Affordable Care Act provides for a health insurance income tax credit for small employers. This Iowa credit is equal to 25 percent of the federal credit. The credit is refundable. The credit is available for employers with fewer than 25 employees. An amendment was adopted in committee to allow the credit to be used against the franchise tax, the premium tax and the moneys and credit tax. The fiscal impact of Senate File 412 in FY14 is estimated at $5.5 million. The bill was originally passed out of committee last week, but a drafting error in the amendment that was approved during committee made it necessary for the committee to approve the redrafted version of the bill. [4/16: short form]
SF 450 increases the application fee and licensing fee for delayed deposit by $100 to $200 and $350, respectively. The bill also establishes a maximum interest rate for delayed deposit services transactions of 36 percent. Currently, these services can have an effective interest rate of nearly 300 percent. [4/16: 8-6, party line (McCoy absent)]