SF 633 (LSB 2382SV (2) 88)

SENATE FILE 633

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SSB 1150)

A BILL FOR

An Act relating to the assessment of certain subdivided real property and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 441.72, Code 2019, is amended to read as follows:
   441.72  Assessment of platted lots and subdivided property.
   1.  Except as provided in subsection 2, when When a subdivision plat is recorded pursuant to chapter 354, the individual lots within the subdivision plat shall not be assessed in excess of the total assessment of the land as acreage or unimproved property for five years after the recording of the plat or continue to be assessed for taxation in the manner that they were prior to subdivision and shall not be assessed in excess of either the total assessment of the land as acreage or unimproved property or the total assessment under the lot’s use prior to subdivision, as applicable, until the lot is actually improved with permanent construction, whichever occurs first. When an individual lot has been improved with permanent construction, the lot shall be assessed for taxation purposes as provided in chapter 428 and this chapter.
   2.  For subdivision plats recorded pursuant to chapter 354 on or after January 1, 2004, but before January 1, 2011, the individual lots within the subdivision plat shall not be assessed in excess of the total assessment of the land as acreage or unimproved property for eight years after the recording of the plat or until the lot is actually improved with permanent construction, whichever occurs first. When an individual lot has been improved with permanent construction, the lot shall be assessed for taxation purposes as provided in chapter 428 and this chapter.
   3.  2.  This section does not apply to special assessment levies.
    Sec. 2.  REPEAL.  Section 405.1, Code 2019, is repealed.
    Sec. 3.  IMPLEMENTATION.
   1.  This Act shall not be construed to require the refund or modification of property taxes that are attributable to assessment years beginning before January 1, 2020, or the adjustment of property assessments for assessment years beginning before January 1, 2020.
   2.  Ordinances adopted under section 405.1 in effect on the effective date of this Act shall be invalid for purposes of assessment years beginning on or after January 1, 2020.
    Sec. 4.  APPLICABILITY.  This Act applies to assessment years beginning on or after January 1, 2020.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the assessment of certain subdivided real property.
   The bill repeals Code section 405.1, which authorizes a county board of supervisors to adopt an ordinance providing that property acquired and subdivided for development of housing shall continue to be assessed for taxation in the manner that it was prior to the acquisition for housing until the lot is sold for construction or occupancy of housing or five years from the date of subdivision, whichever is shorter. Code section 405.1 also authorizes time extensions of certain ordinances that affect the assessment of property subdivided for development of housing and authorizes the time extensions of certain ordinances by counties and by cities in the portion of the applicable area located in the incorporated area of the city. Additionally, the Code section authorizes cities and counties to adopt, amend, or extend such ordinances and provides that property acquired and subdivided for development of housing shall continue to be assessed for taxation and taxed in the manner it was prior to its acquisition for housing until the lot is sold for construction or occupancy of housing.
   Code section 441.72 provides that a platted lot for which a subdivision plat was recorded is assessed for property tax purposes as acreage or unimproved property for five years or until the lot is actually improved with permanent construction, whichever occurs first. However, for subdivision plats recorded on or after January 1, 2004, but before January 1, 2011, the time limit is eight years.
   The bill strikes the portions of Code section 441.72 relating to the five-year limitation and the eight-year limitation and provides that when a subdivision plat is recorded, the individual lots within the subdivision plat shall continue to be assessed for taxation in the manner that they were prior to subdivision and shall not be assessed in excess of either the total assessment of the land as acreage or unimproved property or the total assessment under the lot’s use prior to subdivision, as applicable, until the lot is actually improved with permanent construction.
   The bill shall not be construed to require the refund or modification of property taxes that are attributable to assessment years beginning before January 1, 2020, or the adjustment of property assessments for assessment years beginning before January 1, 2020. The bill also provides that local ordinances adopted under existing Code section 405.1 in effect on the effective date of the bill are invalid for purposes of assessment years beginning on or after January 1, 2020.
   The bill applies to assessment years beginning on or after January 1, 2020.