Current law requires that at least one member of the board of review attend
DOR training within the two-year period beginning on the date of the board's first

meeting. The bill requires one member of the board of review to complete the training
each year.

Current law requires a person applying for an assessor certification
examination to submit a $20 fee with the application. A person applying for a
renewal of an assessor certification pays a $20 recertification fee with the
application. The bill allows DOR to determine the amount of the fee for an assessor
certification examination on the basis of DOR's estimate of the actual cost to
administer and grade the examination, but the fee may not exceed $75. The bill also
allows DOR to determine the recertification fee.

The property tax levy limit under current law does not apply to the amount that
a city, village, or town levies to pay for charges assessed by a joint fire department
or joint emergency medical services district if the current year increase in such
charges is equal to or less than the percentage change in the U.S. consumer price
index for all urban consumers, U.S. city average, as determined by the U.S.
Department of Labor, for the 12 months ending on September 30 of the year of the
levy, plus 2 percent. The bill modifies the consumer price index provision so that it
is for the 12 months ending on August 31 of the year of the levy.

Current law provides a property tax exemption for property owned by
educational associations and institutions, benevolent associations, churches,
religious associations, and certain nonprofit entities licensed by the Department of
Health Services. Leasing such property does not render the property taxable as long
as the lessor uses the leasehold income for maintenance or construction debt
retirement of the leased property. However, current law allows some leased property
to retain its exemption regardless of how the leasehold income is used. For example,
leasing a part of property that is owned and operated by a licensed nonprofit entity
as residential housing does not render the property taxable, regardless of how the
lessor uses the leasehold income.

Under this bill, leasing all or part of any property owned by a church or religious
organization to an educational association or institution that is also exempt from
taxation does not render the property taxable, regardless of how the lessor uses the
leasehold income.

This bill excludes from taxable income all income received in the form of
allocations issued by this state with moneys received from the coronavirus relief fund
to be used for economic support, including broadband expansion, lodging industry
grants, supplemental child care grants, grants to small businesses, a rental
assistance program, and a farm support program.

Current law allows an individual with less than $20,200 of federal adjusted
gross income to claim a disability income subtraction on the individual's state tax

return, if the individual is under 65 years of age and retired on disability, and, when
the individual retired, was permanently and totally disabled. For a married couple
filing a joint return, each spouse may claim the credit if they meet the criteria and
their combined income is less than $25,400. The bill replaces an obsolete reference
to the federal Internal Revenue Code with the language used to determine the
claimant's eligibility that existed under the obsolete reference.

Under current law, an individual who is under the age of 62 and who does not
have a disability must have earned income in order to claim the homestead credit.
However, current law does not define earned income for purposes of claiming the
credit. The bill defines “earned income” for purposes of claiming the homestead
credit as wages, salaries, tips, and other employee compensation that may be
included in federal adjusted gross income for the taxable year, plus the amount of net
earnings from self-employment.

Current law also requires individuals who wish to claim the homestead credit
to add certain disqualified losses to homestead income in order to determine
eligibility to claim the credit. However, the requirement does not apply to an
individual whose primary income is from farming and whose farming operation
generates less than $250,000 in the year to which the claim relates. The bill clarifies
that an individual's primary income is from farming if the individual's gross income
from farming for the year in which the claim relates is greater than 50 percent of the
individual's total gross income from all sources for that year.

Under current law, a taxpayer who receives a final audit determination from
DOR has 90 days to report to DOR any changes or corrections related to that
determination. The bill increases the time for providing that report to 180 days.

The bill modifies the procedure for transferring the historic rehabilitation tax
credit so that the person transferring the credit may file a claim for more than one
taxable year.

The bill adopts for state income and franchise tax purposes various provisions
of the federal Internal Revenue Code, including provisions of the Consolidated
Appropriations Act of 2020 related to the earned income tax credit, the paycheck
protection program, the economic injury disaster loan program, payment assistance
for certain loan programs, and grants to shuttered venue operators.

The bill eliminates obsolete provisions related to the medical care insurance
subtraction for self-employed persons.

Under current law, payments or distributions of $5,000 or less received each
year by an individual from a qualified retirement plan is exempt from income tax if
the individual is at least 65 years of age and has income of less than $15,000 if single
or filing a tax return as head of household or less than $30,000 if married. The bill

changes the exemption to a subtraction that the taxpayer can choose not to claim if
not claiming the subtraction would result in the taxpayer receiving a greater
homestead credit.