Vote Smart's Synopsis:

Vote to pass a bill that reduces commercial and industrial property taxes.

Highlights:

• Reduces the actual value at which commercial and industrial property values are assessed for tax purposes in the following incremental manner from 2013 to 2017 (Sec. 7):
• 98 percent of the actual property value will be taxed in 2013;
• 96 percent of the actual property value will be taxed in 2014;
• 94 percent of the actual property value will be taxed in 2015;
• 92 percent of the actual property value will be taxed in 2016; and
• 90 percent of the actual property value will be taxed in 2017.

• Establishes the Commercial and Property Tax Replacement Fund that will appropriate funds to the Department of Revenue to replace lost revenue from the commercial and industrial property tax reduction, effective July 1, 2014 (Sec. 8).

• Increases the state earned income tax credit from 7 percent to 10 percent of the amount of a taxpayer’s federal earned income tax credit, effective starting with the 2012 tax year (Secs. 1 & 2).

• Reduces the maximum annual increase on the taxable value of agricultural and residential property from 4 percent to 3 percent, effective January 1, 2013 (Sec. 6).

• Authorizes businesses to file claims by March 15 of the year before the due date of taxes for which tax credits are claimed for parcels or property units classified and taxed as commercial, industrial or railway property (Secs. 49 & 50).

• Classifies the following as multi-residential properties (Sec. 61):
• An assisted living facility;
• A manufactured home community;
• A land leased community;
• A mobile home park; and
• Any portion of a building that is dwelling unit.

• Establishes a multi-residential property tax that will be incrementally reduced from 2013 to 2017 (Sec. 61):
• 90 percent of the actual property value will be taxed in 2013;
• 80 percent of the actual property value will be taxed in 2014;
• 70 percent of the actual property value will be taxed in 2015;
• 60 percent of the actual property value will be taxed in 2016; and
• 100 percent of the actual property value will be taxed in each subsequent year.

Full Bill Text