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PAG LIN 1 1 Section 1. Section 25B.2, subsection 3, Code 2001, is 1 2 amended by striking the subsection. 1 3 Sec. 2. NEW SECTION. 25B.5A UNFUNDED STATE MANDATES – 1 4 EFFECT. 1 5 If, on or after July 1, 2003, a state mandate is enacted by 1 6 the general assembly, or otherwise imposed, on a political 1 7 subdivision and the state mandate requires a political 1 8 subdivision to engage in any new activity, to provide a new 1 9 service, or to provide any service beyond that required by any 1 10 law enacted prior to July 1, 2003, and the state does not 1 11 appropriate moneys to fully fund the cost of the state mandate 1 12 as identified pursuant to section 25B.5, subsections 1 and 2, 1 13 the political subdivision is not required to perform the 1 14 activity or provide the new or increased service and the 1 15 political subdivision shall not be subject to any liabilities 1 16 imposed by the state or the imposition of any fines or 1 17 penalties for the failure to comply with the state mandate. 1 18 Sec. 3. Section 25B.7, subsection 2, paragraph a, Code 1 19 2001, is amended by striking the paragraph. 1 20 Sec. 4. Section 100.18, subsection 2, paragraph b, Code 1 21 2001, is amended to read as follows: 1 22 b. The rules shall require the installation of smoke 1 23 detectors in existing single-family rental units and multiple- 1 24 unit residential buildings. Existing single-family dwelling 1 25 units shall be equipped with approved smoke detectors.A1 26person who files for a homestead credit pursuant to chapter1 27425 shall certify that the single-family dwelling unit for1 28which the credit is filed has a smoke detector installed in1 29compliance with this section, or that one will be installed1 30within thirty days of the date the filing for the credit is1 31made.The state fire marshal shall adopt rules and establish 1 32 appropriate procedures to administer this subsection. 1 33 Sec. 5. Section 216.12, subsection 5, Code 2001, is 1 34 amended to read as follows: 1 35 5. The rental or leasing of a housing accommodation in a 2 1 building which contains housing accommodations for not more 2 2 than four families living independently of each other, if the 2 3 owner resides in one of the housing accommodations forwhich2 4the owner qualifies for the homestead tax credit under section2 5425.1at least six months of the calendar year. 2 6 Sec. 6. Section 257.1, subsection 2, unnumbered paragraph 2 7 2, Code 2001, is amended to read as follows: 2 8 For the budget year commencing July 1,19992004, and for 2 9 each succeeding budget year the regular program foundation 2 10 base per pupil iseighty-seven and five-tenthsninety-eight 2 11 and four-tenths percent of the regular program state cost per 2 12 pupil. For the budget year commencing July 1, 1991, and for 2 13 each succeeding budget year the special education support 2 14 services foundation base is seventy-nine percent of the 2 15 special education support services state cost per pupil. The 2 16 combined foundation base is the sum of the regular program 2 17 foundation base and the special education support services 2 18 foundation base. 2 19 Sec. 7. NEW SECTION. 257A.1 PROPERTY TAX LIMITATION. 2 20 1. For property taxes due and payable in the fiscal year 2 21 beginning July 1, 2004, and all subsequent fiscal years, 2 22 property taxes levied by a school district against residential 2 23 property shall not exceed an amount equal to one-half of one 2 24 percent. 2 25 2. For property taxes due and payable in the fiscal year 2 26 beginning July 1, 2004, and all subsequent fiscal years, 2 27 property taxes levied by a school district against 2 28 agricultural property shall not exceed an amount equal to one- 2 29 half of one percent. 2 30 3. For property taxes due and payable in the fiscal year 2 31 beginning July 1, 2004, and all subsequent fiscal years, 2 32 property taxes levied by a school district against commercial 2 33 and industrial property shall not exceed an amount equal to 2 34 one percent. 2 35 4. This section applies to all school district property 3 1 tax levies, other than those authorized in sections 257.3 and 3 2 257.4. 3 3 Sec. 8. NEW SECTION. 257A.2 PROPERTY TAX LIMITATION – 3 4 CONSUMER PRICE INDEX. 3 5 1. Notwithstanding the limitation in section 257A.1, in 3 6 any one fiscal year, the amount of property taxes to be levied 3 7 by a school district against any class of property for the 3 8 budget year cannot exceed the amount computed in this section. 3 9 This section applies to all school district property tax 3 10 levies, other than those authorized in sections 257.3 and 3 11 257.4. 3 12 2. The school district property tax limitation shall be 3 13 computed as follows: 3 14 a. Determine the amount of property taxes levied as a 3 15 percent of actual value in the current fiscal year. 3 16 b. Determine the sum of the amount of actual value of all 3 17 taxable property for the current fiscal year and the increase 3 18 in actual value of property due to new construction, additions 3 19 or improvements to existing structures, expiration of tax 3 20 abatement under chapter 404, and any increase in valuation due 3 21 to reclassification of property. 3 22 c. Multiply the percent calculated in paragraph "a" times 3 23 the amount in paragraph "b". 3 24 d. Multiply the product determined in paragraph "c" times 3 25 the sum of one plus the consumer price index. 3 26 3. For purposes of this section, "consumer price index" 3 27 means the percentage rate of change in the consumer price 3 28 index as tabulated by the United States department of labor, 3 29 bureau of labor statistics, for the twelve-month period ending 3 30 June 30 of the previous fiscal year. 3 31 Sec. 9. Section 331.401, subsection 1, paragraph g, Code 3 32 2001, is amended by striking the paragraph. 3 33 Sec. 10. NEW SECTION. 331.423A ENDING FUND BALANCE. 3 34 Effective for a fiscal year beginning on or after July 1, 3 35 2007, budgeted ending fund balances shall not exceed twenty- 4 1 five percent of actual expenditures in the previous fiscal 4 2 year for either the general fund or the rural services fund. 4 3 An ending fund balance does not include funds reserved or 4 4 designated for a specific purpose and specifically described 4 5 in the certified budget. For purposes of this section, the 4 6 general fund includes the general services basic fund and the 4 7 general services supplemental fund and the rural services fund 4 8 includes the rural services basic fund and the rural services 4 9 supplemental fund. 4 10 Sec. 11. Section 331.424A, subsection 4, Code Supplement 4 11 2001, is amended to read as follows: 4 12 4. For the fiscal year beginning July 1, 1996, and for 4 13 each subsequent fiscal year, the county shall certify a levy 4 14 for payment of services. For each fiscal year, county 4 15 revenues from taxes imposed by the county credited to the 4 16 services fund shall not exceed an amount equal to the amount 4 17 of base year expenditures for services as defined in section 4 18 331.438, less the amount of property tax relief to be received 4 19 pursuant to section 426B.2, in the fiscal year for which the 4 20 budget is certified. The county auditor and the board of 4 21 supervisors shall reduce the amount of the levy certified for 4 22 the services fund by the amount of property tax relief to be 4 23 received. A levy certified under this section is not subject 4 24 to the appeal provisions ofsectionssection 331.426and4 25444.25Bor to any other provision in law authorizing a county 4 26 to exceed, increase, or appeal a property tax levy limit. 4 27 Sec. 12. Section 331.424B, Code 2001, is amended to read 4 28 as follows: 4 29 331.424B CEMETERY LEVY. 4 30 The board may levy annually a tax not to exceed six and 4 31 three-fourths cents per thousand dollars of the assessed value 4 32 of all taxable property in the county to repair and maintain 4 33 all cemeteries under the jurisdiction of the board including 4 34 pioneer cemeteries and to pay other expenses of the board or 4 35 the cemetery commission as provided in section 331.325. The 5 1 proceeds of the tax levy shall be credited to the county 5 2 general fund.Sections 444.25A and 444.25B do not apply to5 3the property tax levied or expended for cemeteries pursuant to5 4section 331.325.5 5 Sec. 13. Section 331.429, subsection 1, paragraphs a and 5 6 b, Code Supplement 2001, are amended to read as follows: 5 7 a. Transfers from the general fund not to exceed in any 5 8 year the dollar equivalent of a tax of sixteen and seven- 5 9 eighths cents per thousand dollars of assessed value on all 5 10 taxable property in the county multiplied by the ratio of 5 11 current taxes actually collected and apportioned for the 5 12 general basic levy to the total general basic levy for the 5 13 current year, and an amount equivalent to the moneys derived 5 14 by the general fund from military service tax credits under 5 15 chapter 426A,manufactured or mobile home taxes under section5 16435.22,and delinquent taxes for prior years collected and 5 17 apportioned to the general basic fund in the current year, 5 18 multiplied by the ratio of sixteen and seven-eighths cents to 5 19 three dollars and fifty cents. 5 20 b. Transfers from the rural services fund not to exceed in 5 21 any year the dollar equivalent of a tax of three dollars and 5 22 three-eighths cents per thousand dollars of assessed value on 5 23 all taxable property not located within the corporate limits 5 24 of a city in the county multiplied by the ratio of current 5 25 taxes actually collected and apportioned for the rural 5 26 services basic levy to the total rural services basic levy for 5 27 the current year and an amount equivalent to the moneys 5 28 derived by the rural services fund from military service tax 5 29 credits under chapter 426A,manufactured or mobile home taxes5 30under section 435.22,and delinquent taxes for prior years 5 31 collected and apportioned to the rural services basic fund in 5 32 the current year, multiplied by the ratio of three dollars and 5 33 three-eighths cents to three dollars and ninety-five cents. 5 34 Sec. 14. Section 331.512, subsection 3, Code 2001, is 5 35 amended by striking the subsection. 6 1 Sec. 15. Section 331.559, subsection 12, Code Supplement 6 2 2001, is amended by striking the subsection. 6 3 Sec. 16. Section 331.559, subsection 13, Code Supplement 6 4 2001, is amended by striking the subsection. 6 5 Sec. 17. Section 335.30A, unnumbered paragraph 2, Code 6 6 2001, is amended to read as follows: 6 7 "Land-leased community" means any site, lot, field, or 6 8 tract of land under common ownership upon which ten or more 6 9 occupied manufactured homes are harbored, either free of 6 10 charge or for revenue purposes, and shall include any 6 11 building, structure, or enclosure used or intended for use as 6 12 part of the equipment of the land-leased community. The term 6 13 "land-leased community" shall not be construed to include 6 14 homes, buildings, or other structures temporarily maintained 6 15 by any individual, educational institution, or company on 6 16 their own premises and used exclusively to house their own 6 17 labor or students. A manufactured home located in a land- 6 18 leased community shall be taxed under section 435.22as if the6 19manufactured home were located in a mobile home park. 6 20 Sec. 18. Section 403.19, subsection 2, Code Supplement 6 21 2001, is amended to read as follows: 6 22 2. That portion of the taxes each year in excess of such 6 23 amount shall be allocated to and when collected be paid into a 6 24 special fund of the municipality to pay the principal of and 6 25 interest on loans, moneys advanced to, or indebtedness, 6 26 whether funded, refunded, assumed, or otherwise, including 6 27 bonds issued under the authority of section 403.9, subsection 6 28 1, incurred by the municipality to finance or refinance, in 6 29 whole or in part, an urban renewal project within the area, 6 30 and to provide assistance for low and moderate income family 6 31 housing as provided in section 403.22, except that taxesfor6 32the regular and voter-approved physical plant and equipment6 33levy oflevied by a school districtimposed pursuant to6 34section 298.2and taxes for the payment of bonds and interest 6 35 of each taxing district must be collected against all taxable 7 1 property within the taxing district without limitation by the 7 2 provisions of this subsection. However, all or a portion of 7 3the taxes for the physical plant and equipment levyschool 7 4 district property tax revenue shall be paid by the school 7 5 district to the municipality if the auditor certifies to the 7 6 school district by July 1 the amount of suchlevyschool 7 7 district property tax revenue that is necessary to pay the 7 8 principal and interest on bonds issued by the municipality to 7 9 finance an urban renewal project, which bonds were issued 7 10 before July 1,20012003. Indebtedness incurred to refund 7 11 bonds issued prior to July 1,20012003, shall not be included 7 12 in the certification. Such school district shall pay over the 7 13 amount certified by November 1 and May 1 of the fiscal year 7 14 following certification to the school district. Unless and 7 15 until the total assessed valuation of the taxable property in 7 16 an urban renewal area exceeds the total assessed value of the 7 17 taxable property in such area as shown by the last equalized 7 18 assessment roll referred to in subsection 1, all of the taxes 7 19 levied and collected upon the taxable property in the urban 7 20 renewal area shall be paid into the funds for the respective 7 21 taxing districts as taxes by or for the taxing districts in 7 22 the same manner as all other property taxes. When such loans, 7 23 advances, indebtedness, and bonds, if any, and interest 7 24 thereon, have been paid, all moneys thereafter received from 7 25 taxes upon the taxable property in such urban renewal area 7 26 shall be paid into the funds for the respective taxing 7 27 districts in the same manner as taxes on all other property. 7 28 Sec. 19. Section 403.19, subsection 7, Code Supplement 7 29 2001, is amended by striking the subsection and inserting in 7 30 lieu thereof the following: 7 31 7. For any fiscal year, a municipality may certify to the 7 32 county auditor for school district property tax revenue 7 33 necessary for payment of principal and interest on bonds 7 34 issued prior to July 1, 2003. The municipality may receive 7 35 school district property tax revenue only if the municipality 8 1 certified for such revenue for the fiscal year beginning July 8 2 1, 2003. A municipality shall not certify more than the 8 3 amount the municipality certified for the fiscal year 8 4 beginning July 1, 2003. If for any fiscal year a municipality 8 5 fails to certify to the county auditor for a school district 8 6 by July 1 the amount of school district property tax revenue 8 7 necessary for payment of principal and interest on such bonds, 8 8 as provided in subsection 2, the school district is not 8 9 required to pay over the revenue to the municipality. 8 10 If in any fiscal year a school district and a municipality 8 11 are unable to agree on the amount of school district property 8 12 tax revenue for which a municipality may certify, either party 8 13 may request that the state appeal board review and finally 8 14 pass upon the amount that may be certified. Such appeals must 8 15 be presented in writing to the state appeal board no later 8 16 than July 31 following certification. The burden shall be on 8 17 the municipality to prove that the school district property 8 18 tax revenue is necessary to pay principal and interest on 8 19 bonds issued prior to July 1, 2003. A final decision must be 8 20 issued by the state appeal board no later than the following 8 21 October 1. 8 22 Sec. 20. Section 403.20, Code 2001, is amended to read as 8 23 follows: 8 24 403.20 PERCENTAGE OF ADJUSTMENT CONSIDERED IN VALUE 8 25 ASSESSMENT. 8 26 In determining the assessed value of property within an 8 27 urban renewal area which is subject to a division of tax 8 28 revenues pursuant to section 403.19, thedifference between8 29the actual value of the property as determined by the assessor8 30each year and the percentage of adjustment certified for that8 31year by the director of revenue and finance on or before8 32November 1reductions applied to the property pursuant to 8 33 section 441.21, subsection94, 5, 5A, or 5B,multiplied by8 34the actual value of the property as determined by the8 35assessor,shall be subtracted from the actual value of the 9 1 property as determined pursuant to section 403.19, subsection 9 2 1. If the assessed value of the property as determined 9 3 pursuant to section 403.19, subsection 1, is reduced to zero, 9 4 the additional valuation reduction shall be subtracted from 9 5 the actual value of the property as determined by the 9 6 assessor. 9 7 Sec. 21. Section 404.3, subsection 1, Code 2001, is 9 8 amended to read as follows: 9 9 1. All qualified real estate assessed as residential 9 10 property is eligible to receive an exemption from taxation 9 11 based on the actual value added by the improvements. The 9 12 exemption is for a period of ten years. The amount of the 9 13 exemption is equal to a percent of the actual value added by 9 14 the improvements, determined as follows: One hundred fifteen 9 15 percent of the value added by the improvements. However, the 9 16 amount of the actual value added by the improvements which 9 17 shall be used to compute the exemption shall not exceed twenty 9 18 thousand dollarsand the granting of the exemption shall not9 19result in the actual value of the qualified real estate being9 20reduced below the actual value on which the homestead credit9 21is computed under section 425.1. 9 22 Sec. 22. Section 414.28A, unnumbered paragraph 2, Code 9 23 2001, is amended to read as follows: 9 24 "Land-leased community" means any site, lot, field, or 9 25 tract of land under common ownership upon which ten or more 9 26 occupied manufactured homes are harbored, either free of 9 27 charge or for revenue purposes, and shall include any 9 28 building, structure, or enclosure used or intended for use as 9 29 part of the equipment of the land-leased community. The term 9 30 "land-leased community" shall not be construed to include 9 31 homes, buildings, or other structures temporarily maintained 9 32 by any individual, educational institution, or company on 9 33 their own premises and used exclusively to house their own 9 34 labor or students. A manufactured home located in a land- 9 35 leased community shall be taxed under section 435.22as if the10 1manufactured home were located in a mobile home park. 10 2 Sec. 23. Section 425.16, Code 2001, is amended to read as 10 3 follows: 10 4 425.16 ADDITIONAL TAX CREDIT. 10 5In addition to the homestead tax credit allowed under10 6section 425.1, subsections 1 to 4, personsPersons who own or 10 7 rent their homesteads and who meet the qualifications provided 10 8 in this division are eligible for an extraordinary property 10 9 tax credit or reimbursement. 10 10 Sec. 24. Section 425.23, subsection 1, Code 2001, is 10 11 amended to read as follows: 10 12 1. a. Thetentative credit or reimbursement for a 10 13 claimant described in section 425.17, subsection 2, paragraph 10 14 "a" and paragraph "b" if no appropriation is made to the fund 10 15 created in section 425.40 shall be determined in accordance 10 16 with the following schedule: 10 17 Percent of property taxes 10 18 due or rent constituting 10 19 property taxes paid 10 20 If the household allowed as a credit or 10 21 income is: reimbursement: 10 22 $ 0 – 8,499.99 .................... 100% 10 23 8,500 – 9,499.99 .................... 85 10 24 9,500 – 10,499.99 .................... 70 10 25 10,500 – 12,499.99 .................... 50 10 26 12,500 – 14,499.99 .................... 35 10 27 14,500 – 16,499.99 .................... 25 10 28 b. If moneys have been appropriated to the fund created in 10 29 section 425.40, thetentativecredit or reimbursement for a 10 30 claimant described in section 425.17, subsection 2, paragraph 10 31 "b", shall be determined as follows: 10 32 (1) If the amount appropriated under section 425.40 plus 10 33 any supplemental appropriation made for a fiscal year for 10 34 purposes of this lettered paragraph is at least twenty-seven 10 35 million dollars, thetentativecredit or reimbursement shall 11 1 be determined in accordance with the following schedule: 11 2 Percent of property taxes 11 3 due or rent constituting 11 4 property taxes paid 11 5 If the household allowed as a credit or 11 6 income is: reimbursement: 11 7 $ 0 – 8,499.99 .................... 100% 11 8 8,500 – 9,499.99 .................... 85 11 9 9,500 – 10,499.99 .................... 70 11 10 10,500 – 12,499.99 .................... 50 11 11 12,500 – 14,499.99 .................... 35 11 12 14,500 – 16,499.99 .................... 25 11 13 (2) If the amount appropriated under section 425.40 plus 11 14 any supplemental appropriation made for a fiscal year for 11 15 purposes of this lettered paragraph is less than twenty-seven 11 16 million dollars, thetentativecredit or reimbursement shall 11 17 be determined in accordance with the following schedule: 11 18 Percent of property taxes 11 19 due or rent constituting 11 20 property taxes paid 11 21 If the household allowed as a credit or 11 22 income is: reimbursement: 11 23 $ 0 – 8,499.99 .................... 50% 11 24 8,500 – 9,499.99 .................... 42 11 25 9,500 – 10,499.99 .................... 35 11 26 10,500 – 12,499.99 .................... 25 11 27 12,500 – 14,499.99 .................... 17 11 28 14,500 – 16,499.99 .................... 12 11 29 Sec. 25. Section 425.23, subsection 2, Code 2001, is 11 30 amended by striking the subsection. 11 31 Sec. 26. Section 425.23, subsection 3, paragraph a, Code 11 32 2001, is amended to read as follows: 11 33 a. A person who is eligible to file a claim for credit for 11 34 property taxes due and who has a household income of eight 11 35 thousand five hundred dollars or less and who has an unpaid 12 1 special assessment levied against the homestead may file a 12 2 claim for a special assessment credit with the county 12 3 treasurer. The department shall provide to the respective 12 4 treasurers the forms necessary for the administration of this 12 5 subsection. The claim shall be filed not later than September 12 6 30 of each year. Upon the filing of the claim, interest for 12 7 late payment shall not accrue against the amount of the unpaid 12 8 special assessment due and payable. The claim filed by the 12 9 claimant constitutes a claim for credit of an amount equal to 12 10 the actual amount due upon the unpaid special assessment, plus 12 11 interest, payable during the fiscal year for which the claim 12 12 is filed against the homestead of the claimant. However, 12 13 where the claimant is an individual described in section 12 14 425.17, subsection 2, paragraph "b", and thetentativecredit 12 15 is determined according to the schedule in subsection 1, 12 16 paragraph "b", subparagraph (2), of this section, the claim 12 17 filed constitutes a claim for credit of an amount equal to 12 18 one-half of the actual amount due and payable during the 12 19 fiscal year. The treasurer shall certify to the director of 12 20 revenue and finance not later than October 15 of each year the 12 21 total amount of dollars due for claims allowed. The amount of 12 22 reimbursement due each county shall be paid by the director of 12 23 revenue and finance by November 15 of each year, drawn upon 12 24 warrants payable to the respective treasurer. There is 12 25 appropriated annually from the general fund of the state to 12 26 the department of revenue and finance an amount sufficient to 12 27 carry out the provisions of this subsection. The treasurer 12 28 shall credit any moneys received from the department against 12 29 the amount of the unpaid special assessment due and payable on 12 30 the homestead of the claimant. 12 31 Sec. 27. Section 427.1, subsection 19, unnumbered 12 32 paragraph 8, Code Supplement 2001, is amended to read as 12 33 follows: 12 34 For the purposes of this subsection "pollution-control 12 35 property" means personal property or improvements to real 13 1 property, or any portion thereof, used primarily to control or 13 2 abate pollution of any air or water of this state or used 13 3 primarily to enhance the quality of any air or water of this 13 4 state and "recycling property" means personal property or 13 5 improvements to real property or any portion of the property, 13 6 used primarily in the manufacturing process and resulting 13 7 directly in the conversion of waste plastic, wastepaper 13 8 products, or waste paperboard, into new raw materials or 13 9 products composed primarily of recycled material. In the 13 10 event such property shall also serve other purposes or uses of 13 11 productive benefit to the owner of the property, only such 13 12 portion of the assessed valuation thereof as may reasonably be 13 13 calculated to be necessary for and devoted to the control or 13 14 abatement of pollution, to the enhancement of the quality of 13 15 the air or water of this state, or for recycling shall be 13 16 exempt from taxation under this subsection. "Pollution- 13 17 control property" includes personal or real property that is 13 18 part of an animal feeding operation structure as defined in 13 19 section 455B.161, if the agricultural land where the structure 13 20 is located is eligible for a family farm tax credit as 13 21 provided in chapter 425A. Otherwise, "pollution-control 13 22 property" does not include personal or real property that is 13 23 part of an animal feeding operation structure associated with 13 24 a confinement feeding operation if the department of natural 13 25 resources must issue a permit prior to the construction of the 13 26 animal feeding operation structure pursuant to section 13 27 455B.200A. The exemption calculated for pollution-control 13 28 property that is part of an animal feeding operation structure 13 29 and that is located on agricultural land eligible for the 13 30 family farm tax credit is limited to the first one hundred 13 31 thousand dollars in assessed value. 13 32 Sec. 28. Section 427A.1, subsection 1, paragraph c, Code 13 33 Supplement 2001, is amended to read as follows: 13 34 c. Buildings, structures or improvements, any of which are 13 35 constructed on or in the land, attached to the land, or placed 14 1 upon a foundation whether or not attached to the foundation. 14 2However, property taxed under chapter 435 shall not be14 3assessed and taxed as real property.14 4 Sec. 29. Section 427C.12, unnumbered paragraph 2, Code 14 5 2001, is amended to read as follows: 14 6 The board of supervisors shall designate the county 14 7 conservation board or the assessor who shall inspect the area 14 8 for which an application is filed for a fruit-tree or forest 14 9 reservation tax exemption before the application is accepted. 14 10 Use of aerial photographs may be substituted for on-site 14 11 inspection when appropriate. The application can only be 14 12 accepted if it meets the criteria established by the natural 14 13 resource commission to be a fruit-tree or forest reservation. 14 14 Once the application has been accepted, the area shall 14 15 continue to receive the tax exemption during each year in 14 16 which the area is maintained as a fruit-tree or forest 14 17 reservation without the owner having to refile. Acres in a 14 18 forest reservation shall be exempt from school district levies 14 19 only. 14 20 PARAGRAPH DIVIDED. If the property is sold or transferred, 14 21 the seller shall notify the buyer that all, or part of, the 14 22 property is in fruit-tree or forest reservation and subject to 14 23 the recapture tax provisions of this section. The tax 14 24 exemption shall continue to be granted for the remainder of 14 25 the eight-year period for fruit-tree reservation and for the 14 26 following years for forest reservation or until the property 14 27 no longer qualifies as a fruit-tree or forest reservation. 14 28 The owner of the forest or fruit-tree reservation shall 14 29 annually certify to the county conservation board or the 14 30 assessor that the area is being maintained with proper forest 14 31 or fruit-tree management, including necessary pruning and 14 32 planting of trees. The area may be inspected each year by the 14 33 county conservation board or the assessor to determine if the 14 34 area is maintained as a fruit-tree or forest reservation. If 14 35 the area is not maintained or is used for economic gain other 15 1 than as a fruit-tree reservation during any year of the eight- 15 2 year exemption period and any year of the following five years 15 3 or as a forest reservation during any year for which the 15 4 exemption is granted and any of the five years following those 15 5 exemption years, the assessor shall assess the property for 15 6 taxation at its fair market value as of January 1 of that year 15 7 and in addition the area shall be subject to a recapture tax. 15 8 However, the area shall not be subject to the recapture tax if 15 9 the owner, including one possessing under a contract of sale, 15 10 and the owner's direct antecedents or descendants have owned 15 11 the area for more than ten years.TheIn the case of a fruit- 15 12 tree reservation, the tax shall be computed by multiplying the 15 13 consolidated levy for each of those years, if any, of the five 15 14 preceding years for which the area received the exemption for 15 15 fruit-treeor forestreservation times the assessed value of 15 16 the area that would have been taxed but for the tax exemption. 15 17 In the case of a forest reservation, the tax shall be computed 15 18 by multiplying the school district levy for each of those 15 19 years, if any, of the five preceding years for which the area 15 20 received the exemption for forest reservation times the 15 21 assessed value of the area that would have been taxed but for 15 22 the tax exemption.ThisThe tax shall be entered against the 15 23 property on the tax list for the current year and shall 15 24 constitute a lien against the property in the same manner as a 15 25 lien for property taxes. The tax when collected shall be 15 26 apportioned in the manner provided for the apportionment of 15 27 the property taxes for the applicable tax year. 15 28 Sec. 30. Section 433.6, Code 2001, is amended to read as 15 29 follows: 15 30 433.6 TAXABLE VALUE. 15 31 The taxable value shall bedetermined by taking the15 32percentage of the actual value so ascertained,reduced as 15 33 provided by section 441.21, and the ratio between the actual 15 34 value and the assessed or taxable value of the property of 15 35 each of said companies shall be the same as in the case of 16 1 property of private individuals. 16 2 Sec. 31. Section 435.22, Code Supplement 2001, is amended 16 3 by striking the section and inserting in lieu thereof the 16 4 following: 16 5 435.22 ASSESSMENT – CREDITS. 16 6 A mobile home or manufactured home shall be assessed as 16 7 residential property pursuant to section 441.21, subsection 4, 16 8 and shall be taxed an annual ad valorem tax in the same manner 16 9 as other residential property. Persons who own or rent a 16 10 mobile home or manufactured home as a homestead and who meet 16 11 the qualifications provided in sections 425.17 through 425.40 16 12 are eligible for an extraordinary property tax credit or 16 13 reimbursement. A person who owns a mobile home or 16 14 manufactured home is eligible to apply for the military tax 16 15 exemption as provided in section 426A.11. 16 16 Real estate located in a manufactured home community or a 16 17 mobile home park, as defined in section 435.1, shall be 16 18 assessed and taxed as improved residential property. Real 16 19 estate located in a land-leased community, as defined in 16 20 sections 335.30A and 414.28A, shall be assessed and taxed as 16 21 improved residential property. 16 22 Sec. 32. Section 435.23, Code Supplement 2001, is amended 16 23 to read as follows: 16 24 435.23 EXEMPTIONS – PRORATING TAX. 16 25 The manufacturer's and dealer's inventory of mobile homes, 16 26 manufactured homes, or modular homes not in use as a place of 16 27 human habitation shall be exempt from the annual tax. All 16 28 travel trailers shall be exempt from this tax. The homes and 16 29 travel trailers in the inventory of manufacturers and dealers 16 30 shall be exempt from personal property tax.The homes coming16 31into Iowa from out of state and located in a manufactured home16 32community or mobile home park shall be liable for the tax16 33computed pro rata to the nearest whole month, for the time the16 34home is actually situated in Iowa.16 35 Sec. 33. Section 435.24, subsections 1, 2, and 4, Code 17 1 Supplement 2001, are amended to read as follows: 17 2 1.The annual tax is due and payable to the county17 3treasurer on or after July 1 in each fiscal year and is17 4collectible in the same manner and at the same time as17 5ordinary taxes as provided in sections 445.36, 445.37, and17 6445.39. Interest at the rate prescribed by law shall accrue17 7on unpaid taxes. Both installments of taxes may be paid at17 8one time. The September installment represents a tax period17 9beginning July 1 and ending December 31. The March17 10installment represents a tax period beginning January 1 and17 11ending June 30. A mobile home, manufactured home, or modular17 12home coming into this state from outside the state, put in use17 13from a dealer's inventory, or put in use at any time after17 14July 1 or January 1, and located in a manufactured home17 15community or mobile home park, is subject to the taxes17 16prorated for the remaining unexpired months of the tax period,17 17but the purchaser is not required to pay the tax at the time17 18of purchase. Interest attaches the following April 1 for17 19taxes prorated on or after October 1. Interest attaches the17 20following October 1 for taxes prorated on or after April 1.17 21 Interest at the rate prescribed by law shall accrue on unpaid 17 22 taxes. If the taxes are not paid, the county treasurer shall 17 23 send a statement of delinquent taxes as part of the notice of 17 24 tax sale as provided in section 446.9. The owner of a home 17 25 who sells the home between July 1 and December 31 and obtains 17 26 a tax clearance statement is responsible only for the 17 27 September tax payment and is not required to pay taxes for 17 28 subsequent tax periods. If the owner of a home located in a 17 29 manufactured home community or mobile home park sells the 17 30 home, obtains a tax clearance statement, and obtains a 17 31 replacement home to be located in a manufactured home 17 32 community or mobile home park, the owner shall not pay taxes 17 33 under this chapter for the newly acquired home for the same 17 34 tax period that the owner has paid taxes on the home sold. 17 35 Interest for delinquent taxes shall be calculated to the 18 1 nearest whole dollar. In calculating interest each fraction 18 2 of a month shall be counted as an entire month. 18 3 2. The home owners upon issuance of a certificate of title 18 4 or upon transporting to a new site shall file the address, 18 5 township, and school district, of the location where the home 18 6 is parked with the county treasurer's office. Failure to 18 7 comply is punishable as set out in section 435.18.When the18 8new location is outside of a manufactured home community or18 9mobile home park, theThe county treasurer shall provide to 18 10 the assessor a copy of the tax clearance statement for 18 11 purposes of assessment as real estate on the following January 18 12 1. 18 13 4. The tax is a lien on the vehicle senior to any other 18 14 lien upon it except a judgment obtained in an action to 18 15 dispose of an abandoned home under section 555B.8. The home 18 16 bearing a current registration issued by any other state and 18 17 remaining within this state for an accumulated period not to 18 18 exceed ninety days in any twelve-month period is not subject 18 19 to Iowa tax. However, when one or more persons occupying a 18 20 home bearing a foreign registration are employed in this 18 21 state, there is no exemption from the Iowa tax.This tax is18 22in lieu of all other taxes general or local on a home.18 23 Sec. 34. Section 435.26, subsection 1, paragraph a, Code 18 24 Supplement 2001, is amended to read as follows: 18 25 a. A mobile home or manufactured home which is located 18 26 outside a manufactured home community or mobile home park 18 27shall be converted to real estate by beingshall be placed on 18 28 a permanent foundation and shall be assessed for real estate 18 29 taxes.A home, after conversion to real estate, is eligible18 30for the homestead tax credit and the military tax exemption as18 31provided in sections 425.2 and 426A.11.Such mobile home or 18 32 manufactured home is subject to the requirements of this 18 33 section. 18 34 Sec. 35. Section 435.27, subsection 1, Code Supplement 18 35 2001, is amended to read as follows: 19 1 1. A mobile home or manufactured homeconverted to real19 2estateunder section 435.26may be reconverted to a home as19 3provided in this section when itthat is moved to a 19 4 manufactured home community or mobile home park or a 19 5 manufactured home retailer's inventory is subject to the 19 6 requirements of this section.When the home is located within19 7a manufactured home community or mobile home park, the home19 8shall be taxed pursuant to section 435.22, subsection 1.19 9 Sec. 36. Section 435.27, subsection 3, Code Supplement 19 10 2001, is amended by striking the subsection. 19 11 Sec. 37. Section 435.28, Code Supplement 2001, is amended 19 12 to read as follows: 19 13 435.28 COUNTY TREASURER TO NOTIFY ASSESSOR. 19 14 Upon issuance of a certificate of title to a mobile home or 19 15 manufactured home which is not located in amanufactured home19 16community or mobile home park ordealer's inventory, the 19 17 county treasurer shall notify the assessor of the existence of 19 18 the home for tax assessment purposes. 19 19 Sec. 38. Section 435.35, Code Supplement 2001, is amended 19 20 to read as follows: 19 21 435.35 EXISTING HOME OUTSIDE OF MANUFACTURED HOME 19 22 COMMUNITY OR MOBILE HOME PARK – EXEMPTION. 19 23 A taxable mobile home or manufactured home which is not 19 24 located in a manufactured home community or mobile home park 19 25 as of January 1, 1995,shall be assessed and taxed as real19 26estate. The homeisalsoexempt from the permanent foundation 19 27 requirements of this chapter until the home is relocated. 19 28 Sec. 39. Section 436.8, Code 2001, is amended to read as 19 29 follows: 19 30 436.8 ACTUAL VALUE PER MILE – TAXABLE VALUE. 19 31 The director of revenue and finance shall thereupon 19 32 ascertain the value per mile of the property within the state, 19 33 by dividing the total value as above ascertained, after 19 34 deducting the specific properties locally assessed within the 19 35 state, by the number of miles within the state, and the result 20 1 shall be deemed and held to be the actual value per mile of 20 2 the property of such company within the state. The assessed 20 3 or taxable value shall bedetermined by taking that percentage20 4of the actual value so ascertained,reduced as is provided by 20 5 section 441.21, and such valuation and assessment shall be in 20 6 the same ratio as that of the property of individuals. 20 7 Sec. 40. Section 437.7, Code 2001, is amended to read as 20 8 follows: 20 9 437.7 TAXABLE VALUE. 20 10 The taxable value of such line or lines of which the 20 11 director of revenue and finance by this chapter is required to 20 12 find the value,shall be determined by taking thepercentage20 13of the actualreduction in value so ascertained, as provided 20 14 by section 441.21, and the ratio between the actual value and 20 15 the assessed or taxable value of the transmission line or 20 16 lines of each of said companies located outside of cities 20 17 shall be the same as in the case of the property of private 20 18 individuals. 20 19 Sec. 41. Section 441.21, subsection 1, paragraphs e, f, 20 20 and g, Code Supplement 2001, are amended by striking the 20 21 paragraphs. 20 22 Sec. 42. Section 441.21, subsection 2, Code Supplement 20 23 2001, is amended to read as follows: 20 24 2. In the event market value of the property being 20 25 assessed cannot be readily established in the foregoing 20 26 manner, then the assessor may determine the value of the 20 27 property using the other uniform and recognized appraisal 20 28 methods including its productive and earning capacity, if any, 20 29 industrial conditions, its cost, physical and functional 20 30 depreciation and obsolescence and replacement cost, and all 20 31 other factors which would assist in determining the fair and 20 32 reasonable market value of the property but the actual value 20 33 shall not be determined by use of only one such factor. The 20 34 following shall not be taken into consideration: Special 20 35 value or use value of the property to its present owner, and 21 1 the good will or value of a business which uses the property 21 2 as distinguished from the value of the property as property. 21 3 However, in assessing property that is rented or leased to 21 4 low-income individuals and families as authorized by section 21 5 42 of the Internal Revenue Code, as amended, and which section 21 6 limits the amount that the individual or family pays for the 21 7 rental or lease of units in the property, the assessor shall 21 8 use the productive and earning capacity from the actual rents 21 9 received as a method of appraisal and shall take into account 21 10 the extent to which that use and limitation reduces the market 21 11 value of the property. The assessor shall not consider any 21 12 tax credit equity or other subsidized financing as income 21 13 provided to the property in determining the assessed value. 21 14 Upon adoption of uniform rules by the revenue department or 21 15 succeeding authority covering assessments and valuations of 21 16 such properties, said valuation on such properties shall be 21 17 determined in accordancetherewithwith such uniform rules for 21 18 assessment purposes to assure uniformity, but such rules shall 21 19 not be inconsistent with or change the foregoing means of 21 20 determining the actual, market, taxable, and assessed values. 21 21 In the event market value of newly constructed residential 21 22 property being assessed cannot be readily established because 21 23 of insufficient comparable sales, the assessor shall use the 21 24 replacement cost method to value the property. 21 25 Sec. 43. Section 441.21, subsection 4, Code Supplement 21 26 2001, is amended by striking the subsection and inserting in 21 27 lieu thereof the following: 21 28 4. For valuations established as of January 1, 2003, the 21 29 actual value at which residential property is assessed shall 21 30 be reduced by fifty percent up to a maximum of twenty thousand 21 31 dollars on each parcel of residential property assessed for 21 32 taxation. The reduction shall be applied to an improved 21 33 parcel only. 21 34 Sec. 44. Section 441.21, subsection 5, Code Supplement 21 35 2001, is amended to read as follows: 22 1 5.For valuations established as of January 1, 1979,22 2commercial property and industrial property, excluding22 3properties referred to in section 427A.1, subsection 7, shall22 4be assessed as a percentage of the actual value of each class22 5of property. The percentage shall be determined for each22 6class of property by the director of revenue for the state in22 7accordance with the provisions of this section. For22 8valuations established as of January 1, 1979, the percentage22 9shall be the quotient of the dividend and divisor as defined22 10in this section. The dividend for each class of property22 11shall be the total actual valuation for each class of property22 12established for 1978, plus six percent of the amount so22 13determined. The divisor for each class of property shall be22 14the valuation for each class of property established for 1978,22 15as reported by the assessors on the abstracts of assessment22 16for 1978, plus the amount of value added to the total actual22 17value by the revaluation of existing properties in 1979 as22 18equalized by the director of revenue pursuant to section22 19441.49.For valuations established as of January 1, 1979, 22 20 property valued by the department of revenue pursuant to 22 21 sections 428.24 through 428.29, and chapters428,433, 436, 22 22 437, and 438 shall be considered as one class of property and 22 23 shall be assessed as a percentage of its actual value. The 22 24 percentage shall be determined by the director of revenue in 22 25 accordance with the provisions of this section. For 22 26 valuations established as of January 1, 1979, the percentage 22 27 shall be the quotient of the dividend and divisor as defined 22 28 in this section. The dividend shall be the total actual 22 29 valuation established for 1978 by the department of revenue, 22 30 plus ten percent of the amount so determined. The divisor for 22 31 property valued by the department of revenue pursuant to 22 32 sections 428.24 through 428.29, and chapters428,433, 436, 22 33 437, and 438 shall be the valuation established for 1978, plus 22 34 the amount of value added to the total actual value by the 22 35 revaluation of the property by the department of revenue as of 23 1 January 1, 1979.For valuations established as of January 1,23 21980, commercial property and industrial property, excluding23 3properties referred to in section 427A.1, subsection 7, shall23 4be assessed at a percentage of the actual value of each class23 5of property. The percentage shall be determined for each23 6class of property by the director of revenue for the state in23 7accordance with the provisions of this section. For23 8valuations established as of January 1, 1980, the percentage23 9shall be the quotient of the dividend and divisor as defined23 10in this section. The dividend for each class of property23 11shall be the dividend as determined for each class of property23 12for valuations established as of January 1, 1979, adjusted by23 13the product obtained by multiplying the percentage determined23 14for that year by the amount of any additions or deletions to23 15actual value, excluding those resulting from the revaluation23 16of existing properties, as reported by the assessors on the23 17abstracts of assessment for 1979, plus four percent of the23 18amount so determined. The divisor for each class of property23 19shall be the total actual value of all such property in 1979,23 20as equalized by the director of revenue pursuant to section23 21441.49, plus the amount of value added to the total actual23 22value by the revaluation of existing properties in 1980. The23 23director shall utilize information reported on the abstracts23 24of assessment submitted pursuant to section 441.45 in23 25determining such percentage.For valuations established as of 23 26 January 1, 1980, property valued by the department of revenue 23 27 pursuant to sections 428.24 through 428.29, and chapters428,23 28 433, 436, 437, and 438 shall be assessed at a percentage of 23 29 its actual value. The percentage shall be determined by the 23 30 director of revenue in accordance with the provisions of this 23 31 section. For valuations established as of January 1, 1980, 23 32 the percentage shall be the quotient of the dividend and 23 33 divisor as defined in this section. The dividend shall be the 23 34 total actual valuation established for 1979 by the department 23 35 of revenue, plus eight percent of the amount so determined. 24 1 The divisor for property valued by the department of revenue 24 2 pursuant to sections 428.24 through 428.29, and chapters428,24 3 433, 436, 437, and 438 shall be the valuation established for 24 4 1979, plus the amount of value added to the total actual value 24 5 by the revaluation of the property by the department of 24 6 revenue as of January 1, 1980.For valuations established as24 7of January 1, 1981, and each year thereafter, the percentage24 8of actual value as equalized by the director of revenue and24 9finance as provided in section 441.49 at which commercial24 10property and industrial property, excluding properties24 11referred to in section 427A.1, subsection 7, shall be assessed24 12shall be calculated in accordance with the methods provided24 13herein, except that any references to six percent in this24 14subsection shall be four percent.For valuations established 24 15 as of January 1, 1981, and each year thereafter, the 24 16 percentage of actual value at which property valued by the 24 17 department of revenue and finance pursuant to sections 428.24 24 18 through 428.29, and chapters428,433, 436, 437, and 438 shall 24 19 be assessed shall be calculated in accordance with the methods 24 20 providedhereinin this section, except that any references to 24 21 ten percent in this subsection shall be eight percent. 24 22 Beginning with valuations established as of January 1, 1979, 24 23 and each year thereafter, property valued by the department of 24 24 revenue and finance pursuant to chapter 434 shall also be 24 25 assessed at a percentage of its actual value which percentage 24 26 shall be equal to the percentage determined by the director of 24 27 revenue and finance for commercial property, industrial 24 28 property, or property valued by the department of revenue and 24 29 finance pursuant to sections 428.24 through 428.29, and 24 30 chapters428,433, 436, 437, and 438, whichever is lowest. 24 31 Sec. 45. Section 441.21, Code Supplement 2001, is amended 24 32 by adding the following new subsections: 24 33 NEW SUBSECTION. 5A. For valuations established as of 24 34 January 1, 2003, the actual value at which commercial property 24 35 and industrial property is assessed shall be reduced by fifty 25 1 percent up to a maximum of twenty-five thousand dollars on 25 2 each parcel of commercial property or industrial property 25 3 assessed for taxation. The reduction shall be applied to an 25 4 improved parcel only. 25 5 NEW SUBSECTION. 5B. For valuations established as of 25 6 January 1, 2003, the actual value at which agricultural 25 7 property is assessed shall be reduced by fifty percent up to a 25 8 maximum of fifty thousand dollars per farm unit. For purposes 25 9 of this subsection, "farm unit" means a single contiguous 25 10 tract of agricultural land, or two or more adjacent tracts of 25 11 agricultural land upon which farming operations are being 25 12 conducted by a person who owns or is purchasing or renting all 25 13 of the land, or by that person's tenant or tenants. If a 25 14 landowner has multiple farm tenants, the land on which farming 25 15 operations are being conducted by each tenant is a separate 25 16 farm unit. Before assigning assessed value per tract of 25 17 agricultural land, the assessor shall establish a per acre 25 18 assessment for the agricultural property. 25 19 Sec. 46. Section 441.21, subsections 9 and 10, Code 25 20 Supplement 2001, are amended to read as follows: 25 21 9. Not later than November 1,19792003, and November 1 of 25 22 each subsequent year, the director shall certify to the county 25 23 auditor of each county the percentages of actual value at 25 24 whichresidential property, agricultural property, commercial25 25property, industrial property, andproperty valued by the 25 26 department of revenue and finance pursuant to sections 428.24 25 27 through 428.29, and chapters428,433, 434, 436, 437, and 438 25 28 in each assessing jurisdiction in the county shall be assessed 25 29 for taxation. The county auditor shall proceed to determine 25 30 the assessed values ofagricultural property, residential25 31property, commercial property, industrial property, and25 32 property valued by the department of revenue and finance 25 33 pursuant to sections 428.24 through 428.29, and chapters428,25 34 433, 434, 436, 437, and 438 by applying such percentages to 25 35 the current actual value of such property, as reported to the 26 1 county auditor by the assessor, and the assessed values so 26 2 determined shall be the taxable values of such properties upon 26 3 which the levy shall be made. 26 4 10. The percentage of actual value computed by the 26 5 director for agricultural property, residential property, 26 6 commercial property, industrial property and property valued 26 7 by the department of revenue and finance pursuant to sections 26 8 428.24 through 428.29, and chapters428,433, 434, 436, 437, 26 9 and 438 and used to determine assessed values of those classes 26 10 of property does not constitute a rule as defined in section 26 11 17A.2, subsection 11. 26 12 Sec. 47. Section 441.22, Code 2001, is amended to read as 26 13 follows: 26 14 441.22 FOREST AND FRUIT-TREE RESERVATIONS. 26 15 Forest and fruit-tree reservations fulfilling the 26 16 conditions of sections 427C.1 to 427C.13 shall be exempt from 26 17 taxation, except as otherwise provided in section 427C.12. In 26 18 all other cases where trees are planted upon any tract of 26 19 land, without regard to area, for forest, fruit, shade, or 26 20 ornamental purposes, or for windbreaks, the assessor shall not 26 21 increase the valuation of the property because of such 26 22 improvements. 26 23 Sec. 48. Section 441.73, subsection 4, Code 2001, is 26 24 amended to read as follows: 26 25 4. The executive council shall transfer for the fiscal 26 26 year beginning July 1, 1992, and each fiscal year thereafter, 26 27 fromfundsthe fund established insectionssection 405A.8, 26 28425.1, and 426.1,an amount necessary to pay litigation 26 29 expenses. The amount of the fund for each fiscal year shall 26 30 not exceed seven hundred thousand dollars.The executive26 31council shall determine annually the proportionate amounts to26 32be transferred from the three separate funds.At any time 26 33 when no litigation is pending or in progress the balance in 26 34 the litigation expense fund shall not exceed one hundred 26 35 thousand dollars. Any excess moneys shall be transferredin a27 1proportionate amountback to thefundsfund from whichthey27 2wereit was originally transferred. 27 3 Sec. 49. Section 443.2, unnumbered paragraph 2, Code 2001, 27 4 is amended to read as follows: 27 5 The county auditor shall list the aggregate actual value 27 6 and the aggregate taxable value of all taxable property within 27 7 the county and each political subdivision including property 27 8 subject to the statewide property tax imposed under section 27 9 437A.18 on the tax list in order that the actual value of the 27 10 taxable property within the county or a political subdivision 27 11 may be ascertained and shown by the tax list for the purpose 27 12 of computing the debt-incurring capacity of the county or 27 13 political subdivision. As used in this section, "actual 27 14 value" is the value determined under section 441.21, 27 15 subsections 1 to 3, prior to the reductionto a percentage of27 16 in actual value as otherwise provided in section 441.21. 27 17 "Actual value" of property subject to statewide property tax 27 18 is the assessed value under section 437A.18. 27 19 Sec. 50. NEW SECTION. 444.25 PROPERTY TAX LIMITATION. 27 20 1. a. For property taxes due and payable in the fiscal 27 21 year beginning July 1, 2004, and all subsequent fiscal years, 27 22 property taxes levied by a county against residential property 27 23 shall not exceed the following percentages of the actual value 27 24 of the property as determined by the assessor after the 27 25 reduction in section 441.21, subsection 4, is applied: 27 26 (1) In the incorporated areas of the county, three-eighths 27 27 of one percent. 27 28 (2) In the unincorporated area of the county, three- 27 29 fourths of one percent. 27 30 b. For property taxes due and payable in the fiscal year 27 31 beginning July 1, 2004, and all subsequent fiscal years, 27 32 property taxes levied by a city against residential property 27 33 shall not exceed an amount equal to one percent of the actual 27 34 value of the property as determined by the assessor after the 27 35 reduction in section 441.21, subsection 4, is applied. 28 1 2. a. (1) For property taxes due and payable in the 28 2 fiscal year beginning July 1, 2004, property taxes levied by a 28 3 county against commercial property or industrial property 28 4 shall not exceed the following percentages of the actual value 28 5 of the property as determined by the assessor after the 28 6 reduction in section 441.21, subsection 5A, is applied: 28 7 (a) In the incorporated areas of the county, one percent. 28 8 (b) In the unincorporated areas of the county, two 28 9 percent. 28 10 (2) For property taxes due and payable in the fiscal year 28 11 beginning July 1, 2005, property taxes levied by a county 28 12 against commercial property or industrial property shall not 28 13 exceed the following percentages of the actual value of the 28 14 property as determined by the assessor after the reduction in 28 15 section 441.21, subsection 5A, is applied: 28 16 (a) In the incorporated areas of the county, seven-eighths 28 17 of one percent. 28 18 (b) In the unincorporated areas of the county, one and 28 19 three-fourths of one percent. 28 20 (3) For property taxes due and payable in the fiscal year 28 21 beginning July 1, 2006, and all subsequent fiscal years, 28 22 property taxes levied by a county against commercial property 28 23 or industrial property shall not exceed the following 28 24 percentages of the actual value of the property as determined 28 25 by the assessor after the reduction in section 441.21, 28 26 subsection 5A, is applied: 28 27 (a) In the incorporated areas of the county, three-fourths 28 28 of one percent. 28 29 (b) In the unincorporated areas of the county, one and 28 30 one-half percent. 28 31 b. (1) For property taxes due and payable in the fiscal 28 32 year beginning July 1, 2004, property taxes levied by a city 28 33 against commercial property or industrial property shall not 28 34 exceed an amount equal to two percent of the actual value of 28 35 the property as determined by the assessor after the reduction 29 1 in section 441.21, subsection 5A, is applied. 29 2 (2) For property taxes due and payable in the fiscal year 29 3 beginning July 1, 2005, property taxes levied by a city 29 4 against commercial property or industrial property shall not 29 5 exceed an amount equal to one and three-fourths percent of the 29 6 actual value of the property as determined by the assessor 29 7 after the reduction in section 441.21, subsection 5A, is 29 8 applied. 29 9 (3) For property taxes due and payable in the fiscal year 29 10 beginning July 1, 2006, and all subsequent fiscal years, 29 11 property taxes levied by a city against commercial property or 29 12 industrial property shall not exceed an amount equal to one 29 13 and one-half percent of the actual value of the property as 29 14 determined by the assessor after the reduction in section 29 15 441.21, subsection 5A, is applied. 29 16 3. a. For property taxes due and payable in the fiscal 29 17 year beginning July 1, 2004, and all subsequent fiscal years, 29 18 property taxes levied by a county against agricultural 29 19 property shall not exceed the following percentages of the 29 20 actual value of the property as determined by the assessor 29 21 after the reduction in section 441.21, subsection 5B, is 29 22 applied: 29 23 (1) In the incorporated areas of the county, one-half of 29 24 one percent. 29 25 (2) In the unincorporated areas of the county, three- 29 26 fourths of one percent. 29 27 b. For property taxes due and payable in the fiscal year 29 28 beginning July 1, 2004, and all subsequent fiscal years, 29 29 property taxes levied by a city against agricultural property 29 30 shall not exceed an amount equal to one percent of the actual 29 31 value of the property as determined by the assessor after the 29 32 reduction in section 441.21, subsection 5B, is applied. 29 33 Sec. 51. Section 444.25A, Code 2001, is amended by 29 34 striking the section and inserting in lieu thereof the 29 35 following: 30 1 444.25A PROPERTY TAX LIMITATION – CONSUMER PRICE INDEX. 30 2 1. Notwithstanding the limitations in section 444.25, the 30 3 percentage increase in the amount of property taxes to be 30 4 levied against any class of property for the next fiscal year 30 5 cannot exceed the amount computed in this section. 30 6 2. The property tax increase limitation shall be computed 30 7 as follows: 30 8 a. Determine the amount of property taxes levied as a 30 9 percent of actual value in the current fiscal year. 30 10 b. Determine the sum of the amount of actual value of all 30 11 taxable property for the current fiscal year and the increase 30 12 in actual value of property due to new construction, additions 30 13 or improvements to existing structures, expiration of tax 30 14 abatement under chapter 404, and any increase in valuation due 30 15 to reclassification of property. 30 16 c. Multiply the percent calculated in paragraph "a" times 30 17 the amount in paragraph "b". 30 18 d. Multiply the product determined in paragraph "c" times 30 19 the sum of one plus the consumer price index. 30 20 3. For purposes of this section, "consumer price index" 30 21 means the percentage rate of change in the consumer price 30 22 index as tabulated by the United States department of labor, 30 23 bureau of labor statistics, for the twelve-month period ending 30 24 June 30 of the previous fiscal year. 30 25 Sec. 52. Section 445.1, subsection 6, Code Supplement 30 26 2001, is amended to read as follows: 30 27 6. "Taxes" means an annual ad valorem tax, a special 30 28 assessment, a drainage tax, and a rate or charge, and taxes on30 29homes pursuant to chapter 435which are collectible by the 30 30 county treasurer. 30 31 Sec. 53. Section 445.39, Code 2001, is amended to read as 30 32 follows: 30 33 445.39 INTEREST ON DELINQUENT TAXES. 30 34 If the first installment of taxes is not paid by the 30 35 delinquent date specified in section 445.37, the installment 31 1 becomes due and draws interest of three-fourths of oneand31 2one-halfpercent per month until paid, from the delinquent 31 3 date following the levy. If the last half is not paid by the 31 4 delinquent date specified for it in section 445.37, the same 31 5 interest shall be charged from the date the last half became 31 6 delinquent. However, after April 1 in a fiscal year when late 31 7 delivery of the tax list referred to in chapter 443 results in 31 8 a delinquency date later than October 1 for the first 31 9 installment, interest on delinquent first installments shall 31 10 accrue as if delivery were made on the previous June 30. The 31 11 interest imposed under this section shall be computed to the 31 12 nearest whole dollar and the amount of interest shall not be 31 13 less than one dollar. In calculating interest each fraction 31 14 of a month shall be counted as an entire month. The interest 31 15 percentage on delinquent special assessments and rates or 31 16 charges is the same as that for the first installment of 31 17 delinquent ad valorem taxes. 31 18 Sec. 54. Section 447.1, unnumbered paragraph 1, Code 2001, 31 19 is amended to read as follows: 31 20 A parcel sold under this chapter and chapter 446 may be 31 21 redeemed at any time before the right of redemption expires, 31 22 by payment to the county treasurer, to be held by the 31 23 treasurer subject to the order of the purchaser, of the amount 31 24 for which the parcel was sold, including the fee for the 31 25 certificate of purchase, and interest oftwoone percent per 31 26 month, counting each fraction of a month as an entire month, 31 27 from the month of sale, and the total amount paid by the 31 28 purchaser or the purchaser's assignee for any subsequent year, 31 29 with interest at the same rate added on the amount of the 31 30 payment for each subsequent year from the month of payment, 31 31 counting each fraction of a month as an entire month. The 31 32 amount of interest must be at least one dollar and shall be 31 33 rounded to the nearest whole dollar. Interest shall accrue on 31 34 subsequent amounts from the month of payment by the 31 35 certificate holder. 32 1 Sec. 55. Section 499A.14, Code 2001, is amended to read as 32 2 follows: 32 3 499A.14 TAXATION. 32 4 The real estate shall be taxed in the name of the 32 5 cooperative, and each member of the cooperative shall pay that 32 6 member's proportionate share of the tax in accordance with the 32 7 proration formula set forth in the bylaws, and eachmember32 8occupying an apartment as a residence shall receive that32 9member's proportionate homestead tax credit and eachveteran 32 10 of the military services of the United States identified as 32 11 such under the laws of the state of Iowa or the United States 32 12 shall receive as a credit that member's veterans tax benefit 32 13 as prescribed by the laws of the state of Iowa. 32 14 Sec. 56. Chapters 425A and 426, Code 2001 and Code 32 15 Supplement 2001, are repealed. Sections 435.33, 444.25B, 32 16 444.26, and 444.27, Code 2001, are repealed. Section 435.34, 32 17 Code Supplement 2001, is repealed. Sections 425.1 through 32 18 425.15, Code 2001 and Code Supplement 2001, are repealed. 32 19 Sec. 57. EFFECTIVE AND APPLICABILITY DATES. 32 20 1. This Act takes effect January 1, 2003, and, except as 32 21 provided in subsections 2 through 4, applies to assessment 32 22 years beginning on or after that date. 32 23 2. The sections of this Act amending section 403.19 apply 32 24 to taxes due and payable in the fiscal years beginning on or 32 25 after July 1, 2003. 32 26 3. The sections of this Act repealing chapters 425A and 32 27 426 and sections 425.1 through 425.15, apply to taxes due and 32 28 payable in fiscal years beginning on or after July 1, 2004. 32 29 4. The section of this Act amending section 427.1, 32 30 subsection 19, applies to exemptions first applied for on or 32 31 after July 1, 2003. 32 32 EXPLANATION 32 33 This bill makes several changes relating to property 32 34 taxation. 32 35 The bill provides that if a new state mandate is imposed on 33 1 or after July 1, 2003, which requires the performance of a new 33 2 activity or service or the expansion of a service beyond what 33 3 was required before July 1, 2003, the state mandate must be 33 4 fully funded. If the state mandate is not fully funded, the 33 5 affected political subdivisions are not required to comply or 33 6 implement the state mandate. Also, no fines or penalties may 33 7 be imposed on a political subdivision for failure to comply or 33 8 carry out an unfunded state mandate. 33 9 The bill strikes Code section 25B.2, subsection 3, and 33 10 rewrites it as a new section outside the intent section of 33 11 Code chapter 25B. The rewritten section removes a qualifying 33 12 phrase which limits the circumstances under which a political 33 13 subdivision may still be required to carry out an unfunded 33 14 state mandate. The rewritten section also strikes the 33 15 exception for federal mandates and for mandates relating to 33 16 public retirement systems. 33 17 The bill increases the regular program foundation base per 33 18 pupil from 87.5 percent to 98.4 percent, beginning with the 33 19 budget year commencing July 1, 2004, to offset the increase in 33 20 school property taxes due to the changed method of assessment. 33 21 The bill provides that, beginning with the fiscal year 33 22 beginning July 1, 2004, a school district cannot levy property 33 23 tax in excess of .5 percent of the taxable value of 33 24 residential and agricultural property and 1 percent of 33 25 commercial or industrial property. The bill also provides 33 26 that school district property taxes by class cannot increase 33 27 by more than the consumer price index for the preceding 12 33 28 months. 33 29 The bill limits the ending general fund and rural services 33 30 fund balances of a county to 25 percent of actual expenditures 33 31 from each fund in the previous fiscal year. The limitation 33 32 applies to fiscal years beginning on or after July 1, 2007. 33 33 The bill provides that the revenues from school district 33 34 property taxes imposed in an urban renewal area that is 33 35 utilizing tax increment financing shall not be paid to the 34 1 municipality implementing the urban renewal plan, but shall be 34 2 paid to the school district imposing the taxes unless the 34 3 school district revenue is needed to pay indebtedness for the 34 4 urban renewal area incurred before July 1, 2003. The 34 5 municipality must have certified for the school revenue by 34 6 July 1, 2003. The amount certified is to be paid to the 34 7 municipality by November 1 and May 1 following certification. 34 8 The bill provides that any land in a forest reservation is 34 9 exempt from school district levies only. The bill requires 34 10 the owner of land in a forest or fruit-tree reservation to 34 11 annually certify that proper management techniques, such as 34 12 pruning and planting, are being followed. 34 13 The bill limits the pollution-control property tax 34 14 exemption for agricultural land owners to $100,000 of value 34 15 and it may only be claimed if the pollution-control property 34 16 is on agricultural land eligible for the family farm tax 34 17 credit. 34 18 The bill removes the square footage tax on mobile homes and 34 19 manufactured homes and replaces it with the ad valorem tax 34 20 imposed on other residences. The bill provides that real 34 21 estate of a mobile home park or land-leased community shall be 34 22 assessed and taxed as improved residential property. 34 23 The bill removes the property tax assessment limitations on 34 24 residential, commercial, industrial, and agricultural property 34 25 and requires that all such property be valued at its fair 34 26 market value. The bill provides a reduction from actual value 34 27 of 50 percent up to a maximum of $50,000 per farm unit. "Farm 34 28 unit" is defined in the bill. The bill also provides a 34 29 reduction from actual value of 50 percent up to a maximum of 34 30 $20,000 for improved residential property and 50 percent up to 34 31 a maximum of $25,000 for improved commercial and improved 34 32 industrial property. 34 33 The bill makes conforming amendments to sections pertaining 34 34 to valuation of property in an urban renewal area and 34 35 valuation of property owned by telegraph and telephone 35 1 companies, express companies, and electric cooperatives. 35 2 The bill also provides that if the assessor is unable to 35 3 establish fair market value of newly constructed residential 35 4 property because of a lack of comparable sales, the assessor 35 5 shall use the replacement cost method to value the property. 35 6 The bill provides that, beginning with the fiscal year 35 7 beginning in 2004, a county cannot levy property taxes in 35 8 excess of the following percentages: 35 9 For residential property and agricultural property in the 35 10 unincorporated area, three-fourths of 1 percent of the taxable 35 11 value. 35 12 For commercial and industrial property in the 35 13 unincorporated area, 2 percent. The 2 percent is lowered for 35 14 successive years until it reaches 1 and one-half percent. 35 15 For residential property in the incorporated area, three- 35 16 eighths of 1 percent. 35 17 For agricultural property in the incorporated area, one- 35 18 half of 1 percent. 35 19 For commercial and industrial property in the incorporated 35 20 area, 1 percent. The 1 percent is lowered for successive 35 21 years until it reaches three-fourths of 1 percent. 35 22 The bill also provides that, beginning with the fiscal year 35 23 beginning in 2004, a city cannot levy property taxes in excess 35 24 of 1 percent of the taxable value of residential property and 35 25 agricultural property, and 2 percent for commercial and 35 26 industrial property. The 2 percent is lowered for successive 35 27 years until it reaches 1 and one-half percent. 35 28 The bill also provides that city or county property taxes 35 29 by class cannot increase by more than the consumer price index 35 30 for the preceding 12 months. 35 31 The bill lowers the amount of interest that can be charged 35 32 against delinquent property taxes. The interest rate is 35 33 changed from 1 and one-half percent to three-fourths of 1 35 34 percent before tax sale. The interest rate is changed from 2 35 35 percent to 1 percent after the delinquent taxes are sold at 36 1 tax sale. 36 2 The bill repeals the homestead property tax credit, the 36 3 family farm property tax credit, and the agricultural land 36 4 property tax credit. The bill makes conforming amendments 36 5 pertaining to these repeals. 36 6 The bill takes effect January 1, 2003, and applies to 36 7 assessment years beginning on or after January 1, 2003. 36 8 The section of the bill amending Code section 403.19 on tax 36 9 increment financing applies to taxes due and payable in fiscal 36 10 years beginning on or after July 1, 2003. The sections of the 36 11 bill repealing the homestead tax credit, the family farm tax 36 12 credit, and the agricultural land tax credit apply to taxes 36 13 due and payable in fiscal years beginning on or after July 1, 36 14 2004. 36 15 LSB 6914SV 79 36 16 sc/cf/24
Text: SF02283 Text: SF02285 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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