HF 2176 (LSB 6107HH (2) 88)

HOUSE FILE 2176

BY  LOHSE

A BILL FOR

An Act relating to the adjustments to state foundation aid paid to a school district following an assessed value reduction for certain property and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 257.12, subsection 1, Code 2020, is amended to read as follows:
   1.  If a school district is required to repay property taxes paid for school taxes levied on property originally assessed at five million dollars or more because the assessment was subsequently reduced by the action of the board of review, property assessment appeal board, or judicial action, and the amount of the reduction in the assessment equals at least one hundred thousand dollars or two percent of the assessed value of all taxable property in the district prior to the reduction, whichever is less, the school district is eligible for an adjustment in state foundation aid. To receive the adjustment in state foundation aid, the school district shall apply to the department of management prior to the beginning of the budget year following the budget year in which the repayment of the property taxes occurred. The department of management shall determine the amount of adjustment in state foundation aid pursuant to subsection 2.
    Sec. 2.  Section 441.39, subsection 2, Code 2020, is amended to read as follows:
   2.  a.  In addition to any other requirement for providing of notice, if a property owner or aggrieved taxpayer files a protest against the assessment of property valued by the assessor at five million dollars or more or files an appeal to the property assessment appeal board or the district court with regard to such property, the assessor shall provide notice to the school district in which such property is located within ten days of the filing of the protest or the appeal, as applicable.
   b.  If property originally assessed at five million dollars or more is reduced by the action of the board of review, property assessment appeal board, or judicial action, and the amount of the reduction in the assessment makes the school district eligible for an adjustment in state foundation aid under section 257.12, subsection 1, the assessor shall notify the school district within ten days of the action. 
    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  APPLICABILITY.  This Act applies to actions of a board of review, actions of the property assessment appeal board, and judicial actions occurring on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code section 257.12(1) provides that if a school district is required to repay property taxes paid for school taxes levied on property originally assessed at $5 million or more because the assessment was subsequently reduced by the action of the property assessment appeal board or judicial action and the amount of the reduction in the assessment equals at least $100,000 or 2 percent of the assessed value of all taxable property in the district prior to the reduction, whichever is less, the school district is eligible for an adjustment in state foundation aid. This bill adds an assessment reduction by the board of review to the provision.
   The bill also amends Code section 441.39 to provide that if a property originally assessed at $5 million or more is reduced by the action of the board of review, property assessment appeal board, or judicial action, and the amount of the reduction in the assessment makes the school district eligible for an adjustment in state foundation aid, the assessor shall notify the school district within 10 days of the action.
   The bill takes effect upon enactment and applies to actions of a board of review, actions of the property assessment appeal board, and judicial actions occurring on or after the effective date of the bill.