Text: HF2362            Text: HF2364
Complete Bill History


House File 2363

HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2229) (COMPANION TO SF 2107 BY IVERSON) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for an annual tax levy on real property used in 2 gaming operations and providing an effective date. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6367HV 80 5 ec/pj/5 PAG LIN 1 1 Section 1. Section 99D.14, subsection 6, Code 2003, is 1 2 amended to read as follows: 1 3 6. Real property used in the operation of a racetrack or 1 4 racetrack enclosure which is exempt from property taxation 1 5 under another provision of the law, including being exempt 1 6 because it is owned by a city, county, state, or charitable or 1 7 nonprofit entity, may be subject to real property taxation by 1 8 any taxing district, including the state, in which the real 1 9 property used in the operation of the racetrack or racetrack 1 10 enclosure is located. To subject such real property to 1 11 taxation, the taxing authority of the a local taxing district 1 12 shall pass a resolution imposing the tax and, if the 1 13 resolution is passed prior to September 1, 1997, shall notify 1 14 the local assessor and the owner of record of the real 1 15 property by September 1, 1997, preceding the fiscal year in 1 16 which the real property taxes are due and payable. The 1 17 assessed value shall be determined and notice of the assessed 1 18 value shall be provided to the county auditor by the local 1 19 assessor by October 15, 1997, and the owner may protest the 1 20 assessed value to the local board of review by December 1, 1 21 1997. For resolutions passed on or after September 1, 1997, 1 22 the taxing authority shall notify the local assessor and owner 1 23 of record prior to the next assessment year and the valuation 1 24 and appeal shall be done in the manner and time as for other 1 25 valuations. For the state, the real property shall be subject 1 26 to taxation as provided in section 444.24. Property taxes due 1 27 as a result of this subsection shall be paid to the county 1 28 treasurer in the manner and time as other property taxes. The 1 29 county treasurer shall remit the tax revenue to those taxing 1 30 authorities imposing the property tax under this subsection. 1 31 Real property subject to tax as provided in this subsection 1 32 shall continue to be taxed until such time as the taxing 1 33 authority of the taxing district repeals the resolution 1 34 subjecting the property to taxation or the state repeals the 1 35 statute subjecting the property to taxation by the state. 2 1 Sec. 2. NEW SECTION. 444.24 GAMING OPERATIONS REAL 2 2 PROPERTY == ANNUAL LEVY. 2 3 1. Gaming operations real property shall be assessed an 2 4 annual levy pursuant to the requirements of this section and 2 5 the amounts collected shall be deposited in the general fund 2 6 of the state. 2 7 2. In each year the director of revenue shall fix the rate 2 8 to be levied per square foot of gaming operations real 2 9 property necessary to raise the amounts provided in subsection 2 10 3 for general state purposes. The director of revenue shall 2 11 certify the rate so fixed to the auditor of each applicable 2 12 county. 2 13 3. a. The amounts required to be raised from the levy on 2 14 gaming operations real property that is used by a licensee as 2 15 gaming floor shall be determined as follows: 2 16 (1) If the target resident population of the county where 2 17 the gaming operations real property is located is less than 2 18 one hundred thousand, the amount to be raised shall be an 2 19 initial payment of twenty=five million dollars, and five 2 20 million dollars for the fiscal year beginning July 1, 2004, 2 21 and each fiscal year thereafter. 2 22 (2) If the target resident population of the county where 2 23 the gaming operations real property is located is one hundred 2 24 thousand or more, but less than three hundred thousand, the 2 25 amount to be raised shall be an initial payment of eighty 2 26 million dollars, and twenty million dollars for the fiscal 2 27 year beginning July 1, 2004, and each fiscal year thereafter. 2 28 (3) If the target resident population of the county where 2 29 the gaming operations real property is located is three 2 30 hundred thousand or more, the amount to be raised shall be an 2 31 initial payment of ninety=five million dollars for the fiscal 2 32 year beginning July 1, 2004, and twenty=five million dollars 2 33 each fiscal year thereafter. 2 34 b. The amount levied on the gaming operations real 2 35 property that is not used by the licensee as gaming floor 3 1 shall be determined as follows: 3 2 (1) If the target resident population of the county where 3 3 the gaming operations real property is located is less than 3 4 one hundred thousand, the amount to be raised shall be an 3 5 initial payment of one hundred thousand dollars, and thirty= 3 6 three thousand two hundred fifty dollars for the fiscal year 3 7 beginning July 1, 2004, and each fiscal year thereafter. 3 8 (2) If the target resident population of the county where 3 9 the gaming operations real property is located is one hundred 3 10 thousand or more, but less than three hundred thousand, the 3 11 amount to be raised shall be an initial payment of three 3 12 hundred fifty thousand dollars, and one hundred thirty=three 3 13 thousand five hundred dollars for the fiscal year beginning 3 14 July 1, 2004, and each fiscal year thereafter. 3 15 (3) If the target resident population of the county where 3 16 the gaming operations real property is located is three 3 17 hundred thousand or more, the amount to be raised shall be an 3 18 initial payment of two million three hundred thousand dollars, 3 19 and one million dollars for the fiscal year beginning July 1, 3 20 2004, and each fiscal year thereafter. 3 21 4. For purposes of this section: 3 22 a. "Gaming operations real property" means real property 3 23 owned or occupied by a licensee under chapter 99D or 99F and 3 24 used in or related to the operation of gambling games, racing, 3 25 or pari=mutuel wagering. "Gaming operations real property" 3 26 does not mean hotels, restaurants or bars, convention centers, 3 27 theaters, or meeting rooms. 3 28 b. "Target resident population of the county" means the 3 29 total population, based upon the most recent federal decennial 3 30 census, of the greater of the population of the county in 3 31 which the gaming operations real property is located or the 3 32 population of each county within this state included in the 3 33 federally designated metropolitan statistical area that 3 34 includes the county in which the gaming operations real 3 35 property is located, as designated as of January 1, 2004. 4 1 Sec. 3. TRANSITION PROVISIONS == GAMING OPERATIONS REAL 4 2 PROPERTY ANNUAL LEVY. Notwithstanding any provision of law to 4 3 the contrary, for purposes of collecting the initial payments 4 4 of the annual levy pursuant to section 444.24, the director of 4 5 revenue shall, within thirty days of the effective date of 4 6 this Act, fix the rate to be levied upon the square footage of 4 7 the gaming operations real property sufficient to raise the 4 8 amounts specified as the initial payments in section 444.24, 4 9 and shall notify in writing the owner of the real property of 4 10 the rate to be applied and the tax to be assessed. The owner 4 11 of the real property shall pay the assessed tax within thirty 4 12 days of receiving notice from the director of revenue. 4 13 Sec. 4. EFFECTIVE DATE. This Act, being deemed of 4 14 immediate importance, takes effect upon enactment. 4 15 EXPLANATION 4 16 This bill provides for an annual property tax levy on 4 17 gaming operations real property. 4 18 Code section 99D.14, subsection 6, which permits taxing 4 19 authorities to impose property taxes on real property used in 4 20 the operation of a racetrack, is amended to specifically 4 21 provide for the state to impose property taxes pursuant to the 4 22 requirements of new Code section 444.24 as created in the 4 23 bill. 4 24 New Code section 444.24 provides for an annual tax levy on 4 25 gaming operations real property with receipts from the levy to 4 26 be deposited in the general fund of the state. The bill 4 27 provides that the director of revenue shall fix the levy rate 4 28 to be imposed on the real property necessary to raise the 4 29 amounts specified and shall then certify the rate to the 4 30 applicable county auditor. The bill provides that the amounts 4 31 to be raised shall depend on the target resident population of 4 32 the county where the gaming operations real property is 4 33 located and on whether the gaming operations real property is 4 34 gaming floor or not. 4 35 "Gaming operations real property" is defined by the bill as 5 1 real property owned or occupied by a licensee under Code 5 2 chapter 99D or 99F and used in or related to the operation of 5 3 gambling games, racing, or pari=mutuel wagering but does not 5 4 include hotels, restaurants or bars, convention centers, 5 5 theaters, or meeting rooms. 5 6 The bill also defines "target resident population of the 5 7 county" as the greater of the population of the county in 5 8 which the racetrack is located or the population of each 5 9 county in this state, including the county in which the 5 10 racetrack is located, that is included in a federal 5 11 metropolitan statistical area. 5 12 The bill provides that if the population where the gaming 5 13 operations real property is located is less than 100,000, the 5 14 amount to be raised on real property that is gaming floor 5 15 shall be an initial payment of $25 million, and $5 million for 5 16 fiscal year 2004=2005 and each fiscal year thereafter. In 5 17 addition, the amount to be raised on real property that is not 5 18 gaming floor shall be an initial payment of $100,000, and 5 19 $33,250 for fiscal year 2004=2005 and each fiscal year 5 20 thereafter. 5 21 If the population where the gaming operations real property 5 22 is located is 100,000, but less than 300,000, the amount to be 5 23 raised on real property that is gaming floor shall be an 5 24 initial payment of $80 million, and $20 million for fiscal 5 25 year 2004=2005 and each fiscal year thereafter. In addition, 5 26 the amount to be raised on real property that is not gaming 5 27 floor shall be an initial payment of $350,000, and $133,500 5 28 for fiscal year 2004=2005 and each fiscal year thereafter. 5 29 The bill provides that if the population where the gaming 5 30 operations real property is located is more than 300,000, the 5 31 amount to be raised on real property that is gaming floor 5 32 shall be an initial payment of $95 million, and $25 million 5 33 for fiscal year 2004=2005 and each fiscal year thereafter. In 5 34 addition, the amount to be raised on real property that is not 5 35 gaming floor shall be an initial payment of $2.3 million, and 6 1 $1 million for fiscal year 2004=2005 and each fiscal year 6 2 thereafter. 6 3 The bill includes a transition provision for the initial 6 4 payment of the annual levy. The bill provides that the 6 5 director of revenue shall notify the owner of the property of 6 6 the tax to be assessed within 30 days of the effective date of 6 7 the bill. The bill then provides that the owner has 30 days 6 8 to pay the tax following notice. 6 9 The bill takes effect upon enactment. 6 10 LSB 6367HV 80 6 11 ec/pj/5
Text: HF2362            Text: HF2364 Complete Bill History