Opinion ID: 2117122
Heading Depth: 1
Heading Rank: 3

Heading: Property Tax CreditHB 1090

Text: The Committee on Taxation introduced HB 1090 on behalf of the governor. The bill was entitled AN ACT TO PROVIDE REAL PROPERTY TAX RELIEF, TO MAKE AN APPROPRIATION THEREFORE AND TO DECLARE AN EMERGENCY. As originally introduced, HB 1090 created a property tax credit account in the state general fund. Beginning July 1, 1992, 26.75% of the total revenue the state receives as its share from the net video lottery income would be placed in this account. HB 1090 further provided that the money would be distributed to counties to provide a property tax credit to each taxpayer. The bill established a method for distribution in calendar year 1992 and provided that in calendar year 1993, and every year thereafter, each county was to receive an amount equal to the total adjusted property taxes payable in such county multiplied by a factor calculated by the commissioner of finance and management. As originally introduced, HB 1090 contained an emergency clause and a continuing appropriation of revenues to the property tax credit account. HB 1090 was considered and failed to pass the House of Representatives (House) on three separate occasions. On all three occasions, the Speaker of the House (Speaker) ruled that HB 1090 failed to pass because it did not receive a two-thirds vote of the members. [2] On each occasion, the members of the House agreed by a two-thirds vote to suspend the rules and keep HB 1090 alive for further discussion. Thereafter, many amendments to HB 1090 were proposed and failed. Eventually, the emergency clause and the continuing appropriation to the department of revenue were deleted. [3] The Speaker ruled that the amended bill, if adopted, could be passed by a simple majority. The decision of the Speaker was appealed to the House by Representative Viken but was sustained. The amendment was then adopted and HB 1090 passed the House with 40 votes in favor, 29 against. When HB 1090 reached the Senate, the bill was amended to allow the counties to allocate up to twenty percent of the revenue for economic development. The House concurred in the amendments by a vote of 41 to 27. [4] HB 1090 `was signed by the Governor on March 19, 1992. Funding for the property tax credit account was included in the General Appropriation Bill which passed by a simple majority vote of the legislature.