S.B. 202, introduced Wednesday, would offer owners of nonessential retail stores an income tax credit equal to 25% of ad valorem taxes assessed on their business, provided their operations were directly impacted by an order issued to curb the spread of COVID-19, the respiratory illness caused by the virus. The credits would be offered for tax years 2020 through 2022 and would be refundable but limited to $1,000 a year.
Under the bill, qualifying business properties that experience assessed valuation and property tax increases of more than 40% than the previous year could defer portions of their property tax payments for up to four years, starting for tax years beginning after Dec. 31, 2020. The deferral would not be available for owners of properties that had material or meaningful changes to the property's characteristics or new construction or improvements before Jan. 1 of the tax year at issue or properties valued at more than $10 million.
The bill would also ensure that individuals would not be taxed on unemployment compensation that was fraudulently received by someone else through identity theft.
Sen. Tom Holland, D-Baldwin City, introduced the bill. The legislation was referred to the Senate Committee on Assessment and Taxation.
--Editing by Vincent Sherry.
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