Text: SF00040 Text: SF00042 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 25B.2, subsection 3, Code 2003, 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, 2004, 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, 2004, 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, subsections 2 and 3, Code 2003, are 1 19 amended by striking the subsections. 1 20 Sec. 4. Section 216.12, subsection 5, Code 2003, is 1 21 amended to read as follows: 1 22 5. The rental or leasing of a housing accommodation in a 1 23 building which contains housing accommodations for not more 1 24 than four families living independently of each other, if the 1 25 owner resides in one of the housing accommodations for which 1 26 the owner qualifies for the homestead taxcreditexemption 1 27 under section 425.1. 1 28 Sec. 5. Section 257.1, subsection 2, unnumbered paragraph 1 29 2, Code 2003, is amended to read as follows: 1 30 For the budget year commencing July 1,19992005, and for 1 31 each succeeding budget year the regular program foundation 1 32 base per pupil iseighty-seven and five-tenthsninety-eight 1 33 and four-tenths percent of the regular program state cost per 1 34 pupil. For the budget year commencing July 1, 1991, and for 1 35 each succeeding budget year the special education support 2 1 services foundation base is seventy-nine percent of the 2 2 special education support services state cost per pupil. The 2 3 combined foundation base is the sum of the regular program 2 4 foundation base and the special education support services 2 5 foundation base. 2 6 Sec. 6. NEW SECTION. 257A.1 PROPERTY TAX LIMITATION. 2 7 1. For property taxes due and payable in the fiscal year 2 8 beginning July 1, 2005, and all subsequent fiscal years, 2 9 property taxes levied by a school district against residential 2 10 property shall not exceed an amount equal to one-half of one 2 11 percent. 2 12 2. For property taxes due and payable in the fiscal year 2 13 beginning July 1, 2005, and all subsequent fiscal years, 2 14 property taxes levied by a school district against 2 15 agricultural property shall not exceed an amount equal to one- 2 16 half of one percent. 2 17 3. For property taxes due and payable in the fiscal year 2 18 beginning July 1, 2005, and all subsequent fiscal years, 2 19 property taxes levied by a school district against commercial 2 20 and industrial property shall not exceed an amount equal to 2 21 one percent. 2 22 4. This section applies to all school district property 2 23 tax levies, other than those authorized in sections 257.3 and 2 24 257.4. 2 25 Sec. 7. NEW SECTION. 257A.2 PROPERTY TAX LIMITATION – 2 26 CONSUMER PRICE INDEX. 2 27 1. Notwithstanding the limitation in section 257A.1, in 2 28 any one fiscal year, the amount of property taxes to be levied 2 29 by a school district against any class of property for the 2 30 budget year cannot exceed the amount computed in this section. 2 31 This section applies to all school district property tax 2 32 levies, other than those authorized in sections 257.3 and 2 33 257.4. 2 34 2. The school district property tax limitation shall be 2 35 computed as follows: 3 1 a. Determine the amount of property taxes levied as a 3 2 percent of actual value in the current fiscal year. 3 3 b. Determine the sum of the amount of actual value of all 3 4 taxable property for the current fiscal year and the increase 3 5 in actual value of property due to new construction, additions 3 6 or improvements to existing structures, expiration of tax 3 7 abatement under chapter 404, and any increase in valuation due 3 8 to reclassification of property. 3 9 c. Multiply the percent calculated in paragraph "a" times 3 10 the amount in paragraph "b". 3 11 d. Multiply the product determined in paragraph "c" times 3 12 the sum of one plus the consumer price index. 3 13 3. For purposes of this section, "consumer price index" 3 14 means the percentage rate of change in the consumer price 3 15 index as tabulated by the United States department of labor, 3 16 bureau of labor statistics, for the twelve-month period ending 3 17 June 30 of the previous fiscal year. 3 18 Sec. 8. Section 331.401, subsection 1, paragraph g, Code 3 19 2003, is amended by striking the paragraph. 3 20 Sec. 9. NEW SECTION. 331.423A ENDING FUND BALANCE. 3 21 Effective for a fiscal year beginning on or after July 1, 3 22 2008, budgeted ending fund balances shall not exceed twenty- 3 23 five percent of actual expenditures in the previous fiscal 3 24 year for either the general fund or the rural services fund. 3 25 An ending fund balance does not include funds reserved or 3 26 designated for a specific purpose and specifically described 3 27 in the certified budget. For purposes of this section, the 3 28 general fund includes the general basic fund and the general 3 29 supplemental fund and the rural services fund includes the 3 30 rural services basic fund and the rural services supplemental 3 31 fund. 3 32 Sec. 10. Section 331.424A, subsection 1, Code 2003, is 3 33 amended to read as follows: 3 34 1. For the purposes of this chapter, unless the context 3 35 otherwise requires, "services: 4 1 a. "Ending balance target percentage" means a county's 4 2 fiscal year ending balance for the services fund calculated on 4 3 a modified accrual basis under generally accepted accounting 4 4 principles and expressed as a percentage of the gross 4 5 expenditure amount for that fiscal year. 4 6 b. "Gross expenditure amount" means a county's gross 4 7 expenditures from the services fund for a fiscal year, as 4 8 calculated on a modified accrual basis under generally 4 9 accepted accounting principles. 4 10 c. "Services fund" means the county mental health, mental 4 11 retardation, and developmental disabilities services fund 4 12 created in subsection 2. 4 13 PARAGRAPH DIVIDED. The county finance committee created in 4 14 section 333A.2 shall consult with the mental health and 4 15 developmental disabilities commission in adopting rules and 4 16 prescribing forms for administering the services fund. 4 17 Sec. 11. Section 331.424A, subsection 4, Code 2003, is 4 18 amended to read as follows: 4 19 4. a. For the fiscal year beginning July 1, 1996, and for 4 20 each subsequent fiscal year, the county shall certify a levy 4 21 for payment of services. For each fiscal year, county 4 22 revenues from taxes imposed by the county credited to the 4 23 services fund shall not exceed an amount equal to the amount 4 24 of base year expenditures for services as defined in section 4 25 331.438, less the amount of property tax relief to be received 4 26 pursuant to section 426B.2, in the fiscal year for which the 4 27 budget is certified. The county auditor and the board of 4 28 supervisors shall reduce the amount of the levy certified for 4 29 the services fund by the amount of property tax relief to be 4 30 received. A levy certified under this section is not subject 4 31 to the appeal provisions of section 331.426 or to any other 4 32 provision in law authorizing a county to exceed, increase, or 4 33 appeal a property tax levy limit. 4 34 b. The levy amount certified for the services fund under 4 35 this subsection shall not be less than the following 5 1 applicable percentage of the county's base year expenditures 5 2 for services as defined in section 331.438, less the amount of 5 3 property tax relief to be received pursuant to section 426B.2, 5 4 as follows: 5 5 (1) For the fiscal year beginning July 1, 2003, fifty 5 6 percent of the county's base year expenditures for services. 5 7 (2) For the fiscal year beginning July 1, 2004, sixty 5 8 percent of the county's base year expenditures for services. 5 9 (3) For the fiscal year beginning July 1, 2005, and 5 10 succeeding fiscal years, seventy percent of the county's base 5 11 year expenditures for services. 5 12 Sec. 12. Section 331.424A, Code 2003, is amended by adding 5 13 the following new subsection: 5 14 NEW SUBSECTION. 6. For purposes of determining the final 5 15 amount for the state payment to a county of allowed growth 5 16 funding in accordance with sections 331.438, subsection 2, and 5 17 331.439, subsection 3, and the per capita expenditure target 5 18 pool portion of allowed growth under section 426B.5, 5 19 subsection 1, the amounts determined for a county under those 5 20 sections shall be proportionately reduced by the amount the 5 21 county's services fund ending balance for the previous fiscal 5 22 year was in excess of the applicable ending balance target 5 23 percentage for that fiscal year as listed in paragraphs "a" 5 24 through "c". The total of county allowed growth funding 5 25 amounts reduced pursuant to this subsection shall be 5 26 redistributed among the eligible counties in accordance with 5 27 the formula for the per capita expenditure target pool portion 5 28 of allowed growth under section 426B.5, subsection 1. The 5 29 ending balance target percentages shall be as follows: 5 30 a. For services fund ending balances for the fiscal year 5 31 beginning July 1, 2002, the ending balance target percentage 5 32 shall be fifty percent. 5 33 b. For services fund ending balances for the fiscal year 5 34 beginning July 1, 2003, the ending balance target percentage 5 35 shall be thirty-five percent. 6 1 c. For services fund ending balances for the fiscal year 6 2 beginning July 1, 2004, and succeeding fiscal years, the 6 3 ending balance target percentage shall be twenty-five percent. 6 4 Sec. 13. Section 331.429, subsection 1, paragraphs a and 6 5 b, Code 2003, are amended to read as follows: 6 6 a. Transfers from the general fund not to exceed in any 6 7 year the dollar equivalent of a tax of sixteen and seven- 6 8 eighths cents per thousand dollars of assessed value on all 6 9 taxable property in the county multiplied by the ratio of 6 10 current taxes actually collected and apportioned for the 6 11 general basic levy to the total general basic levy for the 6 12 current year, and an amount equivalent to the moneys derived 6 13 by the general fund frommilitary service tax credits under6 14chapter 426A, manufactured or mobile home taxes under section6 15435.22, anddelinquent taxes for prior years collected and 6 16 apportioned to the general basic fund in the current year, 6 17 multiplied by the ratio of sixteen and seven-eighths cents to 6 18 three dollars and fifty cents. 6 19 b. Transfers from the rural services fund not to exceed in 6 20 any year the dollar equivalent of a tax of three dollars and 6 21 three-eighths cents per thousand dollars of assessed value on 6 22 all taxable property not located within the corporate limits 6 23 of a city in the county multiplied by the ratio of current 6 24 taxes actually collected and apportioned for the rural 6 25 services basic levy to the total rural services basic levy for 6 26 the current year and an amount equivalent to the moneys 6 27 derived by the rural services fund frommilitary service tax6 28credits under chapter 426A, manufactured or mobile home taxes6 29under section 435.22, anddelinquent taxes for prior years 6 30 collected and apportioned to the rural services basic fund in 6 31 the current year, multiplied by the ratio of three dollars and 6 32 three-eighths cents to three dollars and ninety-five cents. 6 33 Sec. 14. Section 331.512, subsection 3, Code 2003, is 6 34 amended to read as follows: 6 35 3. Carry out duties relating to the homestead taxcredit7 1and agricultural land tax creditexemptions and the military 7 2 tax exemption as provided in chapters 425 and426426A. 7 3 Sec. 15. Section 331.512, subsection 4, Code 2003, is 7 4 amended by striking the subsection. 7 5 Sec. 16. Section 331.559, subsections 12, 13, and 14, Code 7 6 2003, are amended by striking the subsections. 7 7 Sec. 17. Section 335.30A, unnumbered paragraph 2, Code 7 8 2003, is amended to read as follows: 7 9 "Land-leased community" means any site, lot, field, or 7 10 tract of land under common ownership upon which ten or more 7 11 occupied manufactured homes are harbored, either free of 7 12 charge or for revenue purposes, and shall include any 7 13 building, structure, or enclosure used or intended for use as 7 14 part of the equipment of the land-leased community. The term 7 15 "land-leased community" shall not be construed to include 7 16 homes, buildings, or other structures temporarily maintained 7 17 by any individual, educational institution, or company on 7 18 their own premises and used exclusively to house their own 7 19 labor or students. A manufactured home located in a land- 7 20 leased community shall be taxed under section 435.22as if the7 21manufactured home were located in a mobile home park. 7 22 Sec. 18. Section 403.19, subsection 2, Code 2003, is 7 23 amended to read as follows: 7 24 2. That portion of the taxes each year in excess of such 7 25 amount shall be allocated to and when collected be paid into a 7 26 special fund of the municipality to pay the principal of and 7 27 interest on loans, moneys advanced to, or indebtedness, 7 28 whether funded, refunded, assumed, or otherwise, including 7 29 bonds issued under the authority of section 403.9, subsection 7 30 1, incurred by the municipality to finance or refinance, in 7 31 whole or in part, an urban renewal project within the area, 7 32 and to provide assistance for low and moderate income family 7 33 housing as provided in section 403.22, except as otherwise 7 34 provided in subsection 7, and except thattaxes for the7 35regular and voter-approved physical plant and equipment levy8 1of a school district imposed pursuant to section 298.2 and8 2 taxes for the payment of bonds and interest of each taxing 8 3 district must be collected against all taxable property within 8 4 the taxing district without limitation by the provisions of 8 5 this subsection.However, all or a portion of the taxes for8 6the physical plant and equipment levy shall be paid by the8 7school district to the municipality if the auditor certifies8 8to the school district by July 1 the amount of such levy that8 9is necessary to pay the principal and interest on bonds issued8 10by the municipality to finance an urban renewal project, which8 11bonds were issued before July 1, 2001. Indebtedness incurred8 12to refund bonds issued prior to July 1, 2001, shall not be8 13included in the certification. Such school district shall pay8 14over the amount certified by November 1 and May 1 of the8 15fiscal year following certification to the school district.8 16 Unless and until the total assessed valuation of the taxable 8 17 property in an urban renewal area exceeds the total assessed 8 18 value of the taxable property in such area as shown by the 8 19 last equalized assessment roll referred to in subsection 1, 8 20 all of the taxes levied and collected upon the taxable 8 21 property in the urban renewal area shall be paid into the 8 22 funds for the respective taxing districts as taxes by or for 8 23 the taxing districts in the same manner as all other property 8 24 taxes. When such loans, advances, indebtedness, and bonds, if 8 25 any, and interest thereon, have been paid, all moneys 8 26 thereafter received from taxes upon the taxable property in 8 27 such urban renewal area shall be paid into the funds for the 8 28 respective taxing districts in the same manner as taxes on all 8 29 other property. 8 30 Sec. 19. Section 403.19, subsection 7, Code 2003, is 8 31 amended by striking the subsection and inserting in lieu 8 32 thereof the following: 8 33 7. a. Notwithstanding subsection 2, school district 8 34 revenue from property tax levies shall be paid to the school 8 35 district if the school district property levied against is 9 1 located in an urban renewal area in which ten percent or more 9 2 of the property in the urban renewal area is assessed for 9 3 property tax purposes as residential property, except 9 4 residential property that is housing for low or moderate 9 5 income families as that term is defined in section 403.17. 9 6 However, all or a portion of school district property tax 9 7 revenue shall be paid by the school district to the 9 8 municipality if the auditor certifies to the school district 9 9 by July 1 the amount of such revenue that is necessary to pay 9 10 the principal and interest on bonds issued by the municipality 9 11 to finance an urban renewal project, which bonds were issued 9 12 before July 1, 2004. Indebtedness incurred to refund bonds 9 13 issued prior to July 1, 2004, shall not be included in the 9 14 certification. Such school district shall pay over the amount 9 15 certified by November 1 and May 1 of the fiscal year following 9 16 certification to the school district. 9 17 b. For any fiscal year, a municipality may certify to the 9 18 county auditor the school district property tax revenue 9 19 necessary for payment of principal and interest on bonds 9 20 issued prior to July 1, 2004. The municipality may receive 9 21 school district property tax revenue only if the municipality 9 22 certified for such revenue for the fiscal year beginning July 9 23 1, 2004. A municipality shall not certify more than the 9 24 amount the municipality certified for the fiscal year 9 25 beginning July 1, 2004. If for any fiscal year a municipality 9 26 fails to certify to the county auditor for a school district 9 27 by July 1 the amount of school district property tax revenue 9 28 necessary for payment of principal and interest on such bonds, 9 29 as provided in subsection 2, the school district is not 9 30 required to pay over the revenue to the municipality. 9 31 If in any fiscal year a school district and a municipality 9 32 are unable to agree on the amount of school district property 9 33 tax revenue for which a municipality may certify, either party 9 34 may request that the state appeal board review and finally 9 35 pass upon the amount that may be certified. Such appeals must 10 1 be presented in writing to the state appeal board no later 10 2 than July 31 following certification. The burden shall be on 10 3 the municipality to prove that the school district property 10 4 tax revenue is necessary to pay principal and interest on 10 5 bonds issued prior to July 1, 2004. A final decision must be 10 6 issued by the state appeal board no later than the following 10 7 October 1. 10 8 Sec. 20. Section 403.20, Code 2003, is amended to read as 10 9 follows: 10 10 403.20 PERCENTAGE OF ADJUSTMENT CONSIDERED IN VALUE 10 11 ASSESSMENT. 10 12 In determining the assessed value of property within an 10 13 urban renewal area which is subject to a division of tax 10 14 revenues pursuant to section 403.19, thedifference between10 15the actual value of the property as determined by the assessor10 16each year and the percentage of adjustment certified for that10 17year by the director of revenue and finance on or before10 18November 1reductions applied to the property pursuant to 10 19 section 441.21, subsection94, 5, 5A, or 5B,multiplied by10 20the actual value of the property as determined by the10 21assessor,shall be subtracted from the actual value of the 10 22 property as determined pursuant to section 403.19, subsection 10 23 1. If the assessed value of the property as determined 10 24 pursuant to section 403.19, subsection 1, is reduced to zero, 10 25 the additional valuation reduction shall be subtracted from 10 26 the actual value of the property as determined by the 10 27 assessor. 10 28 Sec. 21. Section 404.3, subsection 1, Code 2003, is 10 29 amended to read as follows: 10 30 1. All qualified real estate assessed as residential 10 31 property is eligible to receive an exemption from taxation 10 32 based on the actual value added by the improvements. The 10 33 exemption is for a period of ten years. The amount of the 10 34 exemption is equal to a percent of the actual value added by 10 35 the improvements, determined as follows: One hundred fifteen 11 1 percent of the value added by the improvements. However, the 11 2 amount of the actual value added by the improvements which 11 3 shall be used to compute the exemption shall not exceed twenty 11 4 thousand dollars and the granting of the exemption shall not 11 5 result in the actual value of the qualified real estate being 11 6 reduced below theactual value on whichamount of the 11 7 homesteadcredit is computedexemption under section 425.1. 11 8 Sec. 22. Section 414.28A, unnumbered paragraph 2, Code 11 9 2003, is amended to read as follows: 11 10 "Land-leased community" means any site, lot, field, or 11 11 tract of land under common ownership upon which ten or more 11 12 occupied manufactured homes are harbored, either free of 11 13 charge or for revenue purposes, and shall include any 11 14 building, structure, or enclosure used or intended for use as 11 15 part of the equipment of the land-leased community. The term 11 16 "land-leased community" shall not be construed to include 11 17 homes, buildings, or other structures temporarily maintained 11 18 by any individual, educational institution, or company on 11 19 their own premises and used exclusively to house their own 11 20 labor or students. A manufactured home located in a land- 11 21 leased community shall be taxed under section 435.22as if the11 22manufactured home were located in a mobile home park. 11 23 Sec. 23. Section 425.1, Code 2003, is amended by striking 11 24 the section and inserting in lieu thereof the following: 11 25 425.1 HOMESTEAD ASSESSMENT REDUCTION. 11 26 For valuations established pursuant to section 441.21, as 11 27 of January 1, 2004, the actual value at which an eligible 11 28 homestead is assessed shall be reduced by five thousand 11 29 dollars. The reduction allowed under this part is in addition 11 30 to the reduction in section 441.21, subsection 4. 11 31 Sec. 24. Section 425.2, Code 2003, is amended to read as 11 32 follows: 11 33 425.2 QUALIFYING FORCREDITEXEMPTION. 11 34 A person who wishes to qualify for thecreditexemption 11 35 allowed under this chapter shall obtain the appropriate forms 12 1 for filing for thecreditexemption from the assessor. The 12 2 person claiming thecreditexemption shall file a verified 12 3 statement and designation of homestead with the assessor for 12 4 the year for which the person is first claiming thecredit12 5 exemption. The claim shall be filed not later than July 1 of 12 6 the assessment year for which the person is claiming the 12 7creditexemption. A claim filed after July 1 of the 12 8 assessment year for which the person is claiming thecredit12 9 exemption shall be considered as a claim filed for the 12 10 following year. 12 11 Upon the filing and allowance of the claim, the claim shall 12 12 be allowed on that homestead for successive years without 12 13 further filing as long as the property is legally or equitably 12 14 owned and used as a homestead by that person or that person's 12 15 spouse on July 1 of each of those successive years, and the 12 16 owner of the property being claimed as a homestead declares 12 17 residency in Iowa for purposes of income taxation, and the 12 18 property is occupied by that person or that person's spouse 12 19 for at least six months in each of those calendar years in 12 20 which the fiscal year begins. When the property is sold or 12 21 transferred, the buyer or transferee who wishes to qualify 12 22 shall refile for thecreditexemption. However, when the 12 23 property is transferred as part of a distribution made 12 24 pursuant to chapter 598, the transferee who is the spouse 12 25 retaining ownership of the property is not required to refile 12 26 for thecreditexemption. Property divided pursuant to 12 27 chapter 598 shall not be modified following the division of 12 28 the property. An owner who ceases to use a property for a 12 29 homestead or intends not to use it as a homestead for at least 12 30 six months in a calendar year shall provide written notice to 12 31 the assessor by July 1 following the date on which the use is 12 32 changed. A person who sells or transfers a homestead or the 12 33 personal representative of a deceased person who had a 12 34 homestead at the time of death, shall provide written notice 12 35 to the assessor that the property is no longer the homestead 13 1 of the former claimant. 13 2 In case the owner of the homestead is in active service in 13 3 the armed forces of this state or of the United States, or is 13 4 sixty-five years of age or older, or is disabled, the 13 5 statement and designation may be signed and delivered by any 13 6 member of the owner's family, by the owner's guardian or 13 7 conservator, or by any other person who may represent the 13 8 owner under power of attorney. If the owner of the homestead 13 9 is married, the spouse may sign and deliver the statement and 13 10 designation. The director of human services or the director's 13 11 designee may make application for the benefits of this chapter 13 12 as the agent for and on behalf of persons receiving assistance 13 13 under chapter 249. 13 14 Any person sixty-five years of age or older or any person 13 15 who is disabled may request, in writing, from the appropriate 13 16 assessor forms for filing for the homestead taxcredit13 17 exemption. Any person sixty-five years of age or older or who 13 18 is disabled may complete the form, which shall include a 13 19 statement of homestead, and mail or return it to the 13 20 appropriate assessor. The signature of the claimant on the 13 21 statement shall be considered the claimant's acknowledgment 13 22 that all statements and facts entered on the form are correct 13 23 to the best of the claimant's knowledge. 13 24 Upon adoption of a resolution by the county board of 13 25 supervisors, any person may request, in writing, from the 13 26 appropriate assessor forms for the filing for the homestead 13 27 taxcreditexemption. The person may complete the form, which 13 28 shall include a statement of homestead, and mail or return it 13 29 to the appropriate assessor. The signature of the claimant on 13 30 the statement of homestead shall be considered the claimant's 13 31 acknowledgment that all statements and facts entered on the 13 32 form are correct to the best of the claimant's knowledge. 13 33 Sec. 25. Section 425.3, unnumbered paragraph 4, Code 2003, 13 34 is amended to read as follows: 13 35 The county auditor shall forward the claims to the board of 14 1 supervisors. The board shall allow or disallow the claims. 14 2 If the board disallows a claim, it shall send written notice, 14 3 by mail, to the claimant at the claimant's last known address. 14 4 The notice shall state the reasons for disallowing the claim 14 5 for thecreditexemption. The board is not required to send 14 6 notice that a claim is disallowed if the claimant voluntarily 14 7 withdraws the claim. 14 8 Sec. 26. Section 425.6, Code 2003, is amended to read as 14 9 follows: 14 10 425.6 WAIVER BY NEGLECT. 14 11 If a person fails to file a claim or to have a claim on 14 12 file with the assessor for thecreditsexemptions provided in 14 13 this chapter, the person is deemed to have waived the 14 14 homesteadcreditexemption for the year in which the person 14 15 failed to file the claim or to have a claim on file with the 14 16 assessor. 14 17 Sec. 27. Section 425.7, subsection 3, Code 2003, is 14 18 amended to read as follows: 14 19 3. If the director of revenue and finance determines that 14 20 a claim for the homesteadcreditexemption has been allowed by 14 21 the board of supervisors which is not justifiable under the 14 22 law and not substantiated by proper facts, the director may, 14 23 at any time within thirty-six months from July 1 of the year 14 24 in which the claim is allowed, set aside the allowance. 14 25 Notice of the disallowance shall be given to the county 14 26 auditor of the county in which the claim has been improperly 14 27 granted and a written notice of the disallowance shall also be 14 28 addressed to the claimant at the claimant's last known 14 29 address. The claimant or board of supervisors may appeal to 14 30 the state board of tax review pursuant to section 421.1, 14 31 subsection 4. The claimant or the board of supervisors may 14 32 seek judicial review of the action of the state board of tax 14 33 review in accordance with chapter 17A. 14 34 If a claim is disallowed by the director of revenue and 14 35 finance and not appealed to the state board of tax review or 15 1 appealed to the state board of tax review and thereafter 15 2 upheld upon final resolution, including any judicial review, 15 3 any amounts ofcreditsexemptions allowedand paid from the15 4homestead credit fundincluding the penalty, if any, become a 15 5 lien upon the property on which credit was originally granted, 15 6 if still in the hands of the claimant, and not in the hands of 15 7 a bona fide purchaser, and any amount so erroneously paid 15 8 including the penalty, if any, shall be collected by the 15 9 county treasurer in the same manner as other taxesand the15 10collections shall be returned to the department of revenue and15 11finance and credited to the homestead credit fund. The 15 12director of revenue and financecounty attorney may institute 15 13 legal proceedings against a homesteadcreditexemption 15 14 claimant for the collection of payments made on disallowed 15 15creditsexemptions and the penalty, if any. If a person makes 15 16 a false claim or affidavit with fraudulent intent to obtain 15 17 the homesteadcreditexemption, the person is guilty of a 15 18 fraudulent practice and the claim shall be disallowed in full. 15 19 If thecreditexemption has beenpaidapplied to the value, 15 20 the amount of thecreditexemption credited as taxes plus a 15 21 penalty equal to twenty-five percent of the amount ofcredit15 22 the exemption credited as taxes plus interest, at the rate in 15 23 effect under section 421.7, from the time of payment shall be 15 24 collected by the county treasurer in the same manner as other 15 25 property taxes, penalty, and interest are collectedand when15 26collected shall be paid to the director of revenue and15 27finance. If a homesteadcreditexemption is disallowed and 15 28 the claimant failed to give written notice to the assessor as 15 29 required by section 425.2 when the property ceased to be used 15 30 as a homestead by the claimant, a civil penalty equal to five 15 31 percent of the amount of the disallowedcreditexemption 15 32 credited as taxes is assessed against the claimant. 15 33 Sec. 28. Section 425.8, unnumbered paragraph 1, Code 2003, 15 34 is amended to read as follows: 15 35 The director of revenue and finance shall prescribe the 16 1 form for the making of verified statement and designation of 16 2 homestead, the form for the supporting affidavits required 16 3 herein, and such other forms as may be necessary for the 16 4 proper administration of this chapter. Whenever necessary, 16 5 the department of revenue and finance shall forward to the 16 6 county auditors of the several counties in the state the 16 7 prescribed sample forms, and the county auditors shall furnish 16 8 blank forms prepared in accordance therewith with the 16 9 assessment rolls, books, and supplies delivered to the 16 10 assessors. The department of revenue and finance shall 16 11 prescribe and the county auditors shall provide on the forms 16 12 for claiming the homesteadcreditexemption a statement to the 16 13 effect that the owner realizes that the owner must give 16 14 written notice to the assessor when the owner changes the use 16 15 of the property. 16 16 Sec. 29. Section 425.9, Code 2003, is amended to read as 16 17 follows: 16 18 425.9CREDITS IN EXCESS OF TAX –APPEALS – REFUNDS. 16 19If the amount of credit apportioned to any homestead under16 20the provisions of this chapter in any year shall exceed the16 21total tax, exclusive of any special assessments levied against16 22said homestead, then such excess shall be remitted by the16 23county treasurer to the department of revenue and finance to16 24be redeposited in the homestead credit fund and be reallocated16 25the following year by the department as provided hereunder.16 26 If any claim forcredit made hereundera homestead tax 16 27 exemption has been denied by the board of supervisors, and 16 28 such action is subsequently reversed on appeal, thecredit16 29 exemption shall be allowed on the homestead involved insaid16 30 the appeal, and thedirector of revenue and finance, the16 31 county auditor,and the county treasurer shall make such 16 32creditexemption and change their books and records 16 33 accordingly. 16 34 In the event the appealing taxpayer has paid one or both of 16 35 the installments of the tax payable in the year or years in 17 1 question on such homestead valuation, remittance shall be made 17 2 to such taxpayer of the amount of suchcreditexemption 17 3 credited as taxes. 17 4The amount of such credit shall be allocated and paid from17 5the surplus redeposited in the homestead credit fund provided17 6for in the first paragraph of this section.17 7 Sec. 30. Section 425.10, Code 2003, is amended to read as 17 8 follows: 17 9 425.10 REVERSAL OF ALLOWED CLAIM. 17 10 In the event any claim is allowed, and subsequently 17 11 reversed on appeal, anycreditexemption made thereunder shall 17 12 be void, and the amount of suchcreditexemption credited as 17 13 taxes shall be charged against the property in question, and 17 14the director of revenue and finance,the county auditor,and 17 15 the county treasurer are authorized and directed to correct 17 16 their books and records accordingly. The amount of such 17 17 erroneouscreditexemption, credited as taxes, when collected, 17 18 shall be returned by the county treasurer to thehomestead17 19credit fund to be reallocated the following year as provided17 20hereingeneral fund of the county. 17 21 Sec. 31. Section 425.11, subsection 3, paragraph a, 17 22 unnumbered paragraph 1, Code 2003, is amended to read as 17 23 follows: 17 24 The homestead includes the dwelling house which the owner, 17 25 in good faith, is occupying as a home on July 1 of the 17 26 assessment year for which thecreditexemption is claimed and 17 27 occupies as a home for at least six months during the calendar 17 28 year in which the fiscal year begins, except as otherwise 17 29 provided. 17 30 Sec. 32. Section 425.11, subsection 3, paragraph c, Code 17 31 2003, is amended to read as follows: 17 32 c. It must not embrace more than one dwelling house, but 17 33 where a homestead has more than one dwelling house situated 17 34 thereon, thecreditexemption provided for in this chapter 17 35 shall apply to the home and buildings used by the owner, but 18 1 shall not apply to any other dwelling house and buildings 18 2 appurtenant. 18 3 Sec. 33. Section 425.11, subsection 4, Code 2003, is 18 4 amended to read as follows: 18 5 4. The word "owner" shall mean the person who holds the 18 6 fee simple title to the homestead, and in addition shall mean 18 7 the person occupying as a surviving spouse or the person 18 8 occupying under a contract of purchase which contract has been 18 9 recorded in the office of the county recorder of the county in 18 10 which the property is located, or the person occupying the 18 11 homestead under devise or by operation of the inheritance laws 18 12 where the whole interest passes or where the divided interest 18 13 is shared only by persons related or formerly related to each 18 14 other by blood, marriage or adoption, or the person occupying 18 15 the homestead is a shareholder of a family farm corporation 18 16 that owns the property, or the person occupying the homestead 18 17 under a deed which conveys a divided interest where the 18 18 divided interest is shared only by persons related or formerly 18 19 related to each other by blood, marriage or adoption or where 18 20 the person occupying the homestead holds a life estate with 18 21 the reversion interest held by a nonprofit corporation 18 22 organized under chapter 504A, provided that the holder of the 18 23 life estate is liable for and pays property tax on the 18 24 homestead or where the person occupying the homestead holds an 18 25 interest in a horizontal property regime under chapter 499B, 18 26 regardless of whether the underlying land committed to the 18 27 horizontal property regime is in fee or as a leasehold 18 28 interest, provided that the holder of the interest in the 18 29 horizontal property regime is liable for and pays property tax 18 30 on the homestead. For the purpose of this chapter the word 18 31 "owner" shall be construed to mean a bona fide owner and not 18 32 one for the purpose only of availing the person of the 18 33 benefits of this chapter. In order to qualify for the 18 34 homestead taxcreditexemption, evidence of ownership shall be 18 35 on file in the office of the clerk of the district court or 19 1 recorded in the office of the county recorder at the time the 19 2 owner files with the assessor a verified statement of the 19 3 homestead claimed by the owner as provided in section 425.2. 19 4 Sec. 34. Section 425.12, Code 2003, is amended to read as 19 5 follows: 19 6 425.12 INDIAN LAND. 19 7 Each forty acres of land, or fraction thereof, occupied by 19 8 a member or members of the Sac and Fox Indians in Tama county, 19 9 which land is held in trust by the secretary of the interior 19 10 of the United States for said Indians, shall be given a 19 11 homestead taxcreditexemption within the meaning and under 19 12 the provisions of this chapter. Application for such 19 13 homestead taxcreditexemption shall be made to the county 19 14 auditor of Tama county and may be made by a representative of 19 15 the tribal council. 19 16 Sec. 35. Section 425.13, Code 2003, is amended to read as 19 17 follows: 19 18 425.13 CONSPIRACY TO DEFRAUD. 19 19 If any two or more persons conspire and confederate 19 20 together with fraudulent intent to obtain thecreditexemption 19 21 provided for under the terms of this chapter by making a false 19 22 deed, or a false contract of purchase, they are guilty of a 19 23 fraudulent practice. 19 24 Sec. 36. Section 425.15, Code 2003, is amended to read as 19 25 follows: 19 26 425.15 DISABLED VETERAN TAXCREDITEXEMPTION. 19 27 If the owner of a homestead alloweda creditan exemption 19 28 under this chapter is a veteran of any of the military forces 19 29 of the United States, who acquired the homestead under 38 19 30 U.S.C. } 21.801, 21.802, or 38 U.S.C. } 2101, 2102, thecredit19 31 exemption allowed on the homesteadfrom the homestead credit19 32fundshall be the entire amount of thetax leviedassessed 19 33 value on the homestead. Thecreditexemption allowed shall be 19 34 continued to the estate of a veteran who is deceased or the 19 35 surviving spouse and any child, as defined in section 234.1, 20 1 who are the beneficiaries of a deceased veteran, so long as 20 2 the surviving spouse remains unmarried. This section is not 20 3 applicable to the holder of title to any homestead whose 20 4 annual income, together with that of the titleholder's spouse, 20 5 if any, for the last preceding twelve-month income tax 20 6 accounting period exceeds thirty-five thousand dollars. For 20 7 the purpose of this section "income" means taxable income for 20 8 federal income tax purposes plus income from securities of 20 9 state and other political subdivisions exempt from federal 20 10 income tax. A veteran or a beneficiary of a veteran who 20 11 elects to secure thecreditexemption provided in this section 20 12 is not eligible for any other real property tax exemption 20 13 provided by law for veterans of military service. If a 20 14 veteran acquires a different homestead, thecreditexemption 20 15 allowed under this section may be claimed on the new homestead 20 16 unless the veteran fails to meet the other requirements of 20 17 this section. 20 18 Sec. 37. Section 425.16, Code 2003, is amended to read as 20 19 follows: 20 20 425.16 ADDITIONAL TAX CREDIT. 20 21 In addition to the homestead taxcreditexemption allowed 20 22 under section 425.1,subsections 1 to 4,persons who ownor20 23renttheir homesteads and who meet the qualifications provided 20 24 in this division are eligible for an extraordinary property 20 25 taxcredit or reimbursementexemption. 20 26 For valuations established pursuant to section 441.21, as 20 27 of January 1, 2004, the actual value at which an eligible 20 28 homestead under this part is assessed shall be reduced by two 20 29 thousand five hundred dollars. 20 30 The reduction allowed under this part is in addition to the 20 31 reduction in section 441.21, subsection 4. 20 32 Sec. 38. Section 425.17, subsection 2, Code 2003, is 20 33 amended to read as follows: 20 34 2. "Claimant" means either of the following: 20 35 a. A person filing a claim forcredit or reimbursement21 1 exemption under this division who has attained the age of 21 2 sixty-five years on or before December 31 of the base year or 21 3 who is totally disabled and was totally disabled on or before 21 4 December 31 of the base year and is domiciled in this state at 21 5 the time the claim is filed or at the time of the person's 21 6 death in the case of a claim filed by the executor or 21 7 administrator of the claimant's estate and whose income in the 21 8 base year was less than sixteen thousand five hundred dollars. 21 9 b. A person filing a claim forcredit or reimbursement21 10 exemption under this division who has attained the age of 21 11 twenty-three years on or before December 31 of the base year 21 12 or was a head of household on December 31 of the base year, as 21 13 defined in the Internal Revenue Code, but has not attained the 21 14 age or disability status described in paragraph "a", and is 21 15 domiciled in this state at the time the claim is filed or at 21 16 the time of the person's death in the case of a claim filed by 21 17 the executor or administrator of the claimant's estate, and 21 18 was not claimed as a dependent on any other person's tax 21 19 return for the base year and whose income in the base year was 21 20 less than sixteen thousand five hundred dollars. 21 21 "Claimant" under paragraph "a" or "b" includes a vendee in 21 22 possession under a contract for deed and may include one or 21 23 more joint tenants or tenants in common.In the case of a21 24claim for rent constituting property taxes paid, the claimant21 25shall have rented the property during any part of the base21 26year. In the case of a claim for property taxes due, theThe 21 27 claimant shall have occupied the property during any part of 21 28 the fiscal year beginning July 1 of the base year. If a 21 29 homestead is occupied by two or more persons, and more than 21 30 one person is able to qualify as a claimant, the persons may 21 31 each file a claim based upon each person's incomeand rent21 32constituting property taxes paid or property taxes due. 21 33 Sec. 39. Section 425.17, subsection 3, Code 2003, is 21 34 amended by striking the subsection. 21 35 Sec. 40. Section 425.17, subsection 4, Code 2003, is 22 1 amended to read as follows: 22 2 4. "Homestead" means the dwelling ownedor rentedand 22 3 actually used as a home by the claimant during the period 22 4 specified in subsection 2, and so much of the land surrounding 22 5 it including one or more contiguous lots or tracts of land, as 22 6 is reasonably necessary for use of the dwelling as a home, and 22 7 may consist of a part of a multidwelling or multipurpose 22 8 building and a part of the land upon which it is built. It 22 9 does not include personal property except that a manufactured 22 10 or mobile home may be a homestead.Any dwelling or a part of22 11a multidwelling or multipurpose building which is exempt from22 12taxation does not qualify as a homestead under this division.22 13However, solely for purposes of claimants living in a property22 14and receiving reimbursement for rent constituting property22 15taxes paid immediately before the property becomes tax exempt,22 16and continuing to live in it after it becomes tax exempt, the22 17property shall continue to be classified as a homestead.A 22 18 homestead must be located in this state. When a person is 22 19 confined in a nursing home, extended-care facility, or 22 20 hospital, the person shall be considered as occupying or 22 21 living in the person's homestead if the person is the owner of 22 22 the homestead and the person maintains the homestead and does 22 23 not lease, rent, or otherwise receive profits from other 22 24 persons for the use of the homestead. 22 25 Sec. 41. Section 425.17, subsections 8 and 9, Code 2003, 22 26 are amended by striking the subsections. 22 27 Sec. 42. Section 425.18, Code 2003, is amended to read as 22 28 follows: 22 29 425.18 RIGHT TO FILE A CLAIM. 22 30 The right to file a claim forreimbursement or credit22 31 exemption under this division may be exercised by the claimant 22 32 or on behalf of a claimant by the claimant's legal guardian, 22 33 spouse, or attorney, or by the executor or administrator of 22 34 the claimant's estate.If a claimant dies after having filed22 35a claim for reimbursement for rent constituting property taxes23 1paid, the amount of the reimbursement may be paid to another23 2member of the household as determined by the director. If the23 3claimant was the only member of the household, the23 4reimbursement may be paid to the claimant's executor or23 5administrator, but if neither is appointed and qualified23 6within one year from the date of the filing of the claim, the23 7reimbursement shall escheat to the state.If a claimant dies 23 8 after having filed a claim forcredit for property taxes due23 9 exemption, the amount ofcreditthe exemption shall bepaid23 10 allowed as if the claimant had not died. 23 11 Sec. 43. Section 425.19, Code 2003, is amended to read as 23 12 follows: 23 13 425.19 CLAIM ANDCREDIT OR REIMBURSEMENTEXEMPTION. 23 14 Subject to the limitations provided in this division, a 23 15 claimant may annually claima credit for property taxes duean 23 16 exemption during the fiscal year next following the base year 23 17or claim a reimbursement for rent constituting property taxes23 18paid in the base year.The amount of the credit for property23 19taxes due for a homestead shall be paid on June 15 of each23 20year by the director to the county treasurer who shall credit23 21the money received against the amount of the property taxes23 22due and payable on the homestead of the claimant and the23 23amount of the reimbursement for rent constituting property23 24taxes paid shall be paid to the claimant from the state23 25general fund on or before December 31 of each year.23 26 Sec. 44. Section 425.20, unnumbered paragraph 1, Code 23 27 2003, is amended by striking the unnumbered paragraph. 23 28 Sec. 45. Section 425.20, unnumbered paragraph 3, Code 23 29 2003, is amended to read as follows: 23 30 In case of sickness, absence, or other disability of the 23 31 claimant or if, in the judgment of the director of revenue and 23 32 finance, good cause exists and the claimant requests an 23 33 extension, the director may extend the time for filing a claim 23 34 forreimbursement or creditexemption. However, any further 23 35 time granted shall not extend beyond December 31 of the year 24 1 following the year in which the claim was required to be 24 2 filed. Claims filed as a result of this paragraph shall be 24 3 filed with the director who shall provide for the 24 4 reimbursement of the claim to the claimant. 24 5 Sec. 46. Section 425.22, Code 2003, is amended to read as 24 6 follows: 24 7 425.22 ONE CLAIMANT PER HOUSEHOLD. 24 8 Only one claimant per household peryear shall be entitled24 9to reimbursement under this division and only one claimant per24 10household perfiscal year shall be entitled toa creditan 24 11 exemption under this division. 24 12 Sec. 47. Section 425.23, Code 2003, is amended by striking 24 13 the section and inserting in lieu thereof the following: 24 14 425.23 ANNUAL ADJUSTMENT TO INCOME. 24 15 1. For the base year beginning in the 1999 calendar year 24 16 and for each subsequent base year, the dollar amounts set 24 17 forth in section 425.17, subsection 2, shall be multiplied by 24 18 the cumulative adjustment factor for that base year. 24 19 "Cumulative adjustment factor" means the product of the annual 24 20 adjustment factor for the 1998 base year and all annual 24 21 adjustment factors for subsequent base years. The cumulative 24 22 adjustment factor applies to the base year beginning in the 24 23 calendar year for which the latest annual adjustment factor 24 24 has been determined. 24 25 2. The annual adjustment factor for the 1998 base year is 24 26 one hundred percent. For each subsequent base year, the 24 27 annual adjustment factor equals the annual inflation factor 24 28 for the calendar year, in which the base year begins, as 24 29 computed in section 422.4 for purposes of the individual 24 30 income tax. 24 31 Sec. 48. Section 425.26, subsections 2 and 3, Code 2003, 24 32 are amended by striking the subsection. 24 33 Sec. 49. Section 425.27, Code 2003, is amended to read as 24 34 follows: 24 35 425.27 AUDIT – RECALCULATION OR DENIAL. 25 1 If on the audit of a claim forcredit or reimbursement25 2 exemption under this division, the director determinesthe25 3amount of the claim to have been incorrectly calculated or25 4 that the claim is not allowable, the director shall 25 5recalculate the claim andnotify the claimant of the 25 6recalculation ordenial and the reasons for it. The director 25 7 shall not adjust a claim after three years from October 31 of 25 8 the year in which the claim was filed.If the claim for25 9reimbursement has been paid, the amount may be recovered by25 10assessment in the same manner that income taxes are assessed25 11under sections 422.26 and 422.30.If the claim forcredit25 12 exemption has beenpaidallowed, the director shall give 25 13 notification to the claimant and the county treasurer of the 25 14recalculation ordenial of the claim and the county treasurer 25 15 shall proceed to collect the tax owed in the same manner as 25 16 other property taxes due and payable are collected, if the 25 17 property on which thecreditexemption was granted is still 25 18 owned by the claimant, and repay the amount to the director25 19upon collection. If the property on which thecredit25 20 exemption was granted is not owned by the claimant, the amount 25 21 may be recovered from the claimant by assessment in the same 25 22 manner that income taxes are assessed under sections 422.26 25 23 and 422.30. The recalculation ofthe claimproperty taxes due 25 24 shall be final unless appealed as provided in section 425.31. 25 25 Section 422.70 is applicable with respect to this division. 25 26 Sec. 50. Section 425.28, unnumbered paragraph 2, Code 25 27 2003, is amended to read as follows: 25 28 The department of revenue and finance may release 25 29 information pertaining to a person's eligibilityor claim for25 30or receipt of rent reimbursementto an employee of the 25 31 department of inspections and appeals in the employee's 25 32 official conduct of an audit or investigation. 25 33 Sec. 51. Section 425.29, Code 2003, is amended to read as 25 34 follows: 25 35 425.29 FALSE CLAIM – PENALTY. 26 1 A person who makes a false affidavit for the purpose of 26 2 obtainingcredit or reimbursementan exemption provided for in 26 3 this division or who knowingly receives thecredit or26 4reimbursementexemption without being legally entitled to it 26 5 or makes claim for thecredit or reimbursementexemption in 26 6 more than one county in the state without being legally 26 7 entitled to it is guilty of a fraudulent practice. The claim 26 8 forcredit or reimbursementexemption shall be disallowed in 26 9 full and if theclaimreduction in value has beenpaidmade 26 10 the amount of the exemption credited as taxes shall be 26 11 recovered in the manner provided in section 425.27. The 26 12 director of revenue and finance shall send a notice of 26 13 disallowance of the claim. 26 14 Sec. 52. Section 426A.6, Code 2003, is amended to read as 26 15 follows: 26 16 426A.6 SETTING ASIDE ALLOWANCE. 26 17 If the director of revenue and finance determines that a 26 18 claim for military service tax exemption has been allowed by a 26 19 board of supervisors which is not justifiable under the law 26 20 and not substantiated by proper facts, the director may, at 26 21 any time within thirty-six months from July 1 of the year in 26 22 which the claim is allowed, set aside the allowance. Notice 26 23 of the disallowance shall be given to the county auditor of 26 24 the county in which the claim has been improperly granted and 26 25 a written notice of the disallowance shall also be addressed 26 26 to the claimant at the claimant's last known address. The 26 27 claimant or the board of supervisors may appeal to the state 26 28 board of tax review pursuant to section 421.1, subsection 4. 26 29 The claimant or the board of supervisors may seek judicial 26 30 review of the action of the state board of tax review in 26 31 accordance with chapter 17A. If a claim is disallowed by the 26 32 director of revenue and finance and not appealed to the state 26 33 board of tax review or appealed to the state board of tax 26 34 review and thereafter upheld upon final resolution, including 26 35 judicial review, thecreditsexemption credited as taxes 27 1 allowedand paid from the general fund of the statebecome a 27 2 lien upon the property on which thecreditexemption was 27 3 originally granted, if still in the hands of the claimant and 27 4 not in the hands of a bona fide purchaser, the amount of the 27 5 exemption credited as taxes so erroneouslypaidallowed shall 27 6 be collected by the county treasurer in the same manner as 27 7 other taxes, and the collections shall be returned to the27 8department of revenue and finance and credited to the general27 9fund of the state. Thedirector of revenue and financecounty 27 10 attorney may institute legal proceedings against a military 27 11 service tax exemption claimant for the collection of payments 27 12 made on disallowed exemptions. 27 13 Sec. 53. Section 426A.8, Code 2003, is amended to read as 27 14 follows: 27 15 426A.8EXCESS REMITTED –APPEALS. 27 16If the amount of credit apportioned to any property27 17eligible to military service tax exemption under this chapter27 18in any year shall exceed the total tax, exclusive of any27 19special assessments levied against such property eligible for27 20military service tax exemption, then the excess shall be27 21remitted by the county treasurer to the department of revenue27 22and finance to be redeposited in the general fund of the state27 23and reallocated the following year by the department.27 24 If any claim for exemption made has been denied by the 27 25 board of supervisors, and the action is subsequently reversed 27 26 on appeal, thesame creditexemption shall be allowed on the 27 27 assessed valuation,not to exceed the amount of the military27 28service tax exemption involved in the appeal, as was allowed27 29on other military service tax exemption valuations for the27 30year or years in question,and thedirector of revenue and27 31finance, thecounty auditor,and the county treasurer shall 27 32 credit and change their books and records accordingly. 27 33 If the appealing taxpayer has paid one or both of the 27 34 installments of the tax payable in the year or years in 27 35 question on such military service tax exemption valuation, 28 1 remittance shall be made to the county treasurer in the amount 28 2 of suchcreditexemption credited as taxes. 28 3 The amount of the credit shall be allocated and paid from 28 4 thesurplus redeposited in thegeneral fund of thestate28 5provided for in the first paragraph of this sectioncounty. 28 6 Sec. 54. Section 426A.9, Code 2003, is amended to read as 28 7 follows: 28 8 426A.9 ERRONEOUSCREDITSEXEMPTIONS. 28 9 If any claim is allowed, and subsequently reversed on 28 10 appeal, anycreditexemption shall be void, and the amount of 28 11 thecreditexemption credited as taxes shall be charged 28 12 against the property in question, and thedirector of revenue28 13and finance, thecounty auditor and the county treasurer shall 28 14 correct their books and records. The amount of the erroneous 28 15creditexemption credited as taxes, when collected, shall be 28 16returned by the county treasurerpaid to the general fund of 28 17 thestatecounty. 28 18 Sec. 55. Section 426A.11, Code 2003, is amended to read a 28 19 follows: 28 20 426A.11 MILITARY SERVICE – EXEMPTIONS. 28 21 The following exemptions from taxation shall be allowed: 28 221. The property, not to exceed two thousand seven hundred28 23seventy-eight dollars in taxable value of any veteran, as28 24defined in section 35.1, of the First World War.28 252.1. The property, not to exceedonetwo thousandeight28 26hundred fifty-twodollars in taxable value of an honorably 28 27 separated, retired, furloughed to a reserve, placed on 28 28 inactive status, or discharged veteran,as defined in section28 2935.1or a person currently serving in the armed forces of the 28 30 United States. 28 313.2.Where the word "veteran" appears in this chapter, it28 32 Service in the armed forces of the United States includes, 28 33 without limitation,the membersservice as a member of the 28 34 United States air force, merchant marine,andcoast guard, 28 35 reserve forces, Iowa national guard, and women's air force and 29 1 army corps. 29 24.3. For the purpose of determining a military tax 29 3 exemption under this section, property includes a manufactured 29 4 or mobile home as defined in section 435.1. 29 5 Sec. 56. Section 426A.13, unnumbered paragraph 1, Code 29 6 2003, is amended to read as follows: 29 7 A person named in section 426A.11, who is a resident of and 29 8 domiciled in the state of Iowa, shall receive a reduction 29 9 equal to the exemption, to be made from any property owned by 29 10 the person or owned by a family farm corporation of which the 29 11 person is a shareholder and who occupies the property and so 29 12 designated by proceeding as provided in the section. To be 29 13 eligible to receive the exemption the person claiming it shall 29 14 have recorded in the office of the county recorder of the 29 15 county in which is located the property designated for the 29 16 exemption, evidence of property ownership by that person or 29 17 the family farm corporation of which the person is a 29 18 shareholder and proof of active military service or the 29 19 military certificate of satisfactory service, order 29 20 transferring to inactive status, reserve, retirement, order of 29 21 separation from service, honorable discharge or a copy of any 29 22 of these documents of the person claiming or through whom is 29 23 claimed the exemption. 29 24 Sec. 57. Section 427.1, subsection 19, unnumbered 29 25 paragraph 8, Code 2003, is amended to read as follows: 29 26 For the purposes of this subsection "pollution-control 29 27 property" means personal property or improvements to real 29 28 property, or any portion thereof, used primarily to control or 29 29 abate pollution of any air or water of this state or used 29 30 primarily to enhance the quality of any air or water of this 29 31 state and "recycling property" means personal property or 29 32 improvements to real property or any portion of the property, 29 33 used primarily in the manufacturing process and resulting 29 34 directly in the conversion of waste plastic, wastepaper 29 35 products, or waste paperboard, into new raw materials or 30 1 products composed primarily of recycled material. In the 30 2 event such property shall also serve other purposes or uses of 30 3 productive benefit to the owner of the property, only such 30 4 portion of the assessed valuation thereof as may reasonably be 30 5 calculated to be necessary for and devoted to the control or 30 6 abatement of pollution, to the enhancement of the quality of 30 7 the air or water of this state, or for recycling shall be 30 8 exempt from taxation under this subsection. "Pollution- 30 9 control property" includes personal or real property that is 30 10 part of an animal feeding operation structure as defined in 30 11 section 459.102, if the agricultural land where the structure 30 12 is located qualifies for the pollution-control exemption as 30 13 provided in subsection 19A. The exemption calculated for 30 14 pollution-control property that is part of an animal feeding 30 15 operation structure is limited to the first one hundred 30 16 thousand dollars in assessed value. 30 17 Sec. 58. Section 427.1, Code 2003, is amended by adding 30 18 the following new subsection: 30 19 NEW SUBSECTION. 19A. a. To qualify for the pollution- 30 20 control exemption in subsection 19, a tract of land containing 30 21 an animal feeding operation structure must be owned by an 30 22 owner as defined in this subsection and a designated person 30 23 must be actively engaged in farming during the calendar year 30 24 preceding the calendar year in which the land is assessed. 30 25 b. For purposes of this subsection: 30 26 (1) "Actively engaged in farming" means the designated 30 27 person is personally involved in the production of crops and 30 28 livestock on the eligible tract on a regular, continuous, and 30 29 substantial basis. However, a lessor, whether under a cash or 30 30 a crop share lease, is not actively engaged in farming on the 30 31 area of the tract covered by the lease. This provision 30 32 applies to both written and oral leases. 30 33 (2) "Agricultural land" means land in tracts of ten acres 30 34 or more excluding any buildings or other structures located on 30 35 the land, and not laid off into lots of less than ten acres or 31 1 divided by streets and alleys into parcels of less than ten 31 2 acres, and in good faith used for agricultural or 31 3 horticultural purposes. Any land in tracts laid off or 31 4 platted into lots of less than ten acres belonging to and a 31 5 part of other lands of more than ten acres and in good faith 31 6 used for agricultural or horticultural purposes is entitled to 31 7 the benefits of this chapter. 31 8 (3) "Crop" or "crop production" includes pastureland. 31 9 (4) "Designated person" means one of the following: 31 10 (a) If the owner is an individual, the designated person 31 11 includes the owner of the tract, the owner's spouse, the 31 12 owner's child or stepchild, and their spouses, or the owner's 31 13 relative within the third degree of consanguinity, and the 31 14 relative's spouse. 31 15 (b) If the owner is a partnership, a partner or the 31 16 partner's spouse. 31 17 (c) If the owner is a family farm corporation, a family 31 18 member who is a shareholder of the family farm corporation or 31 19 the shareholder's spouse. 31 20 (d) If the owner is an authorized farm corporation, a 31 21 shareholder who owns at least fifty-one percent of the stock 31 22 of the authorized farm corporation or the shareholder's 31 23 spouse. 31 24 (e) If the owner is an individual who leases the tract to 31 25 a family farm corporation, a shareholder of the corporation if 31 26 the combined stock of the family farm corporation owned by the 31 27 owner of the tract and persons related to the owner as 31 28 enumerated in subparagraph subdivision (a) is equal to at 31 29 least fifty-one percent of the stock of the family farm 31 30 corporation. 31 31 (f) If the owner is an individual who leases the tract to 31 32 a partnership, a partner if the combined partnership interest 31 33 owned by a designated person as defined in subparagraph 31 34 subdivision (a) is equal to at least fifty-one percent of the 31 35 ownership interest of the partnership. 32 1 (5) "Eligible tract" or "eligible tract of agricultural 32 2 land" means an area of agricultural land which meets all of 32 3 the following: 32 4 (a) Is comprised of all of the contiguous tracts under 32 5 identical legal ownership that are located within the same 32 6 county. 32 7 (b) In the aggregate more than half the acres of the 32 8 contiguous tract are devoted to the production of crops or 32 9 livestock by a designated person who is actively engaged in 32 10 farming. 32 11 (c) For purposes of subparagraph (2), if some or all of 32 12 the contiguous tract is being farmed under a lease 32 13 arrangement, the activities of the lessor do not constitute 32 14 being actively engaged in farming on the areas of the tract 32 15 covered by the lease. If the lessee is a designated person 32 16 who is actively engaged in farming, the acres under lease may 32 17 be considered in determining whether more than half the acres 32 18 of the contiguous tract are devoted to the production of crops 32 19 or livestock. 32 20 (6) "Owner" means any of the following: 32 21 (a) An individual who holds the fee simple title to the 32 22 agricultural land. 32 23 (b) An individual who owns the agricultural land under a 32 24 contract of purchase which has been recorded in the office of 32 25 the county recorder of the county in which the agricultural 32 26 land is located. 32 27 (c) An individual who owns the agricultural land under 32 28 devise or by operation of the inheritance laws, where the 32 29 whole interest passes or where the divided interest is shared 32 30 only by individuals related or formerly related to each other 32 31 by blood, marriage, or adoption. 32 32 (d) An individual who owns the agricultural land under a 32 33 deed which conveys a divided interest, where the divided 32 34 interest is shared only by individuals related or formerly 32 35 related to each other by blood, marriage, or adoption. 33 1 (e) A partnership where all partners are related or 33 2 formerly related to each other by blood, marriage, or 33 3 adoption. 33 4 (f) A family farm corporation or authorized farm 33 5 corporation, as both are defined in section 9H.1, which owns 33 6 the agricultural land. 33 7 Sec. 59. Section 427.9, Code 2003, is amended to read as 33 8 follows: 33 9 427.9 SUSPENSION OF TAXES, ASSESSMENTS, AND RATES OR 33 10 CHARGES, INCLUDING INTEREST, FEES, AND COSTS. 33 11 If a person is a recipient of federal supplementary 33 12 security income or state supplementary assistance, as defined 33 13 in section 249.1, or is a resident of a health care facility, 33 14 as defined by section 135C.1, which is receiving payment from 33 15 the department of human services for the person's care, the 33 16 person shall be deemed to be unable to contribute to the 33 17 public revenue. The director of human services shall notify a 33 18 person receiving such assistance of the tax suspension 33 19 provision and shall provide the person with evidence to 33 20 present to the appropriate county board of supervisors which 33 21 shows the person's eligibility for tax suspension on parcels 33 22 owned, possessed, or upon which the person is paying taxes as 33 23 a purchaser under contract. The board of supervisors so 33 24 notified, without the filing of a petition and statement as 33 25 specified in section 427.8, shall order the county treasurer 33 26 to suspend the collection of all the taxes, special 33 27 assessments, and rates or charges, including interest, fees, 33 28 and costs, assessed against the parcels and remaining unpaid 33 29 by the person or contractually payable by the person, for such 33 30 time as the person remains the owner or contractually 33 31 prospective owner of the parcels, and during the period the 33 32 person receives assistance as described in this section. The 33 33 county board of supervisors shall annually send to the 33 34 department of human services the names and social security 33 35 numbers of persons receiving a tax suspension pursuant to this 34 1 section. The department shall verify the continued 34 2 eligibility for tax suspension of each name on the list and 34 3 shall return the list to the board of supervisors. The 34 4 director of human services shall advise the person that the 34 5 person may apply for an additional property tax credit 34 6 pursuant to sections 425.16to 425.39through 425.37 which 34 7 shall be credited against the amount of the taxes suspended. 34 8 Sec. 60. Section 427A.1, subsection 1, paragraph c, Code 34 9 2003, is amended to read as follows: 34 10 c. Buildings, structures or improvements, any of which are 34 11 constructed on or in the land, attached to the land, or placed 34 12 upon a foundation whether or not attached to the foundation. 34 13However, property taxed under chapter 435 shall not be34 14assessed and taxed as real property.34 15 Sec. 61. Section 427C.12, unnumbered paragraph 2, Code 34 16 2003, is amended to read as follows: 34 17 The board of supervisors shall designate the county 34 18 conservation board or the assessor who shall inspect the area 34 19 for which an application is filed for a fruit-tree or forest 34 20 reservation tax exemption before the application is accepted. 34 21 Use of aerial photographs may be substituted for on-site 34 22 inspection when appropriate. The application can only be 34 23 accepted if it meets the criteria established by the natural 34 24 resource commission to be a fruit-tree or forest reservation. 34 25 Once the application has been accepted, the area shall 34 26 continue to receive the tax exemption during each year in 34 27 which the area is maintained as a fruit-tree or forest 34 28 reservation without the owner having to refile. Acres in a 34 29 forest reservation shall be exempt from school district levies 34 30 only. 34 31 PARAGRAPH DIVIDED. If the property is sold or transferred, 34 32 the seller shall notify the buyer that all, or part of, the 34 33 property is in fruit-tree or forest reservation and subject to 34 34 the recapture tax provisions of this section. The tax 34 35 exemption shall continue to be granted for the remainder of 35 1 the eight-year period for fruit-tree reservation and for the 35 2 following years for forest reservation or until the property 35 3 no longer qualifies as a fruit-tree or forest reservation. 35 4 The owner of the forest or fruit-tree reservation shall 35 5 annually certify to the county conservation board or the 35 6 assessor that the area is being maintained with proper forest 35 7 or fruit-tree management, including necessary pruning and 35 8 planting of trees. The area may be inspected each year by the 35 9 county conservation board or the assessor to determine if the 35 10 area is maintained as a fruit-tree or forest reservation. If 35 11 the area is not maintained or is used for economic gain other 35 12 than as a fruit-tree reservation during any year of the eight- 35 13 year exemption period and any year of the following five years 35 14 or as a forest reservation during any year for which the 35 15 exemption is granted and any of the five years following those 35 16 exemption years, the assessor shall assess the property for 35 17 taxation at its fair market value as of January 1 of that year 35 18 and in addition the area shall be subject to a recapture tax. 35 19 However, the area shall not be subject to the recapture tax if 35 20 the owner, including one possessing under a contract of sale, 35 21 and the owner's direct antecedents or descendants have owned 35 22 the area for more than ten years.TheIn the case of a fruit- 35 23 tree reservation, the tax shall be computed by multiplying the 35 24 consolidated levy for each of those years, if any, of the five 35 25 preceding years for which the area received the exemption for 35 26 fruit-treeor forestreservation times the assessed value of 35 27 the area that would have been taxed but for the tax exemption. 35 28 In the case of a forest reservation, the tax shall be computed 35 29 by multiplying the school district levy for each of those 35 30 years, if any, of the five preceding years for which the area 35 31 received the exemption for forest reservation times the 35 32 assessed value of the area that would have been taxed but for 35 33 the tax exemption.ThisThe tax shall be entered against the 35 34 property on the tax list for the current year and shall 35 35 constitute a lien against the property in the same manner as a 36 1 lien for property taxes. The tax when collected shall be 36 2 apportioned in the manner provided for the apportionment of 36 3 the property taxes for the applicable tax year. 36 4 Sec. 62. Section 433.6, Code 2003, is amended to read as 36 5 follows: 36 6 433.6 TAXABLE VALUE. 36 7 The taxable value shall bedetermined by taking the36 8percentage of the actual value so ascertained,reduced as 36 9 provided by section 441.21, and the ratio between the actual 36 10 value and the assessed or taxable value of the property of 36 11 each of said companies shall be the same as in the case of 36 12 property of private individuals. 36 13 Sec. 63. Section 435.22, Code 2003, is amended by striking 36 14 the section and inserting in lieu thereof the following: 36 15 435.22 ASSESSMENT – CREDITS. 36 16 A mobile home or manufactured home used primarily as a 36 17 residence shall be assessed as improved residential property 36 18 pursuant to section 441.21, subsection 4, and shall be taxed 36 19 an annual ad valorem tax in the same manner as other 36 20 residential property. A mobile home or manufactured home used 36 21 primarily for commercial or industrial purposes shall be 36 22 assessed as improved commercial or industrial property 36 23 pursuant to section 441.21, subsection 5A, and shall be taxed 36 24 an annual ad valorem tax in the same manner as other 36 25 commercial or industrial property. Persons who own or rent a 36 26 mobile home or manufactured home as a homestead and who meet 36 27 the qualifications provided in sections 425.17 through 425.37 36 28 are eligible for an extraordinary property tax exemption. A 36 29 person who owns a mobile home or manufactured home is eligible 36 30 to apply for the military tax exemption as provided in section 36 31 426A.11. 36 32 Real estate located in a manufactured home community or a 36 33 mobile home park, as defined in section 435.1, shall be 36 34 assessed and taxed as improved residential property. Real 36 35 estate located in a land-leased community, as defined in 37 1 sections 335.30A and 414.28A, shall be assessed and taxed as 37 2 improved residential property. 37 3 Sec. 64. Section 435.23, Code 2003, is amended to read as 37 4 follows: 37 5 435.23 EXEMPTIONS – PRORATING TAX. 37 6 The manufacturer's and dealer's inventory of mobile homes, 37 7 manufactured homes, or modular homes not in use as a place of 37 8 human habitation shall be exempt from the annual tax. All 37 9 travel trailers shall be exempt from this tax. The homes and 37 10 travel trailers in the inventory of manufacturers and dealers 37 11 shall be exempt from personal property tax.The homes coming37 12into Iowa from out of state and located in a manufactured home37 13community or mobile home park shall be liable for the tax37 14computed pro rata to the nearest whole month, for the time the37 15home is actually situated in Iowa.37 16 Sec. 65. Section 435.24, subsections 1, 2, and 4, Code 37 17 2003, are amended to read as follows: 37 18 1.The annual tax is due and payable to the county37 19treasurer on or after July 1 in each fiscal year and is37 20collectible in the same manner and at the same time as37 21ordinary taxes as provided in sections 445.36, 445.37, and37 22445.39. Interest at the rate prescribed by law shall accrue37 23on unpaid taxes. Both installments of taxes may be paid at37 24one time. The September installment represents a tax period37 25beginning July 1 and ending December 31. The March37 26installment represents a tax period beginning January 1 and37 27ending June 30. A mobile home, manufactured home, or modular37 28home coming into this state from outside the state, put in use37 29from a dealer's inventory, or put in use at any time after37 30July 1 or January 1, and located in a manufactured home37 31community or mobile home park, is subject to the taxes37 32prorated for the remaining unexpired months of the tax period,37 33but the purchaser is not required to pay the tax at the time37 34of purchase. Interest attaches the following April 1 for37 35taxes prorated on or after October 1. Interest attaches the38 1following October 1 for taxes prorated on or after April 1.38 2 Interest at the rate prescribed by law shall accrue on unpaid 38 3 taxes. If the taxes are not paid, the county treasurer shall 38 4 send a statement of delinquent taxes as part of the notice of 38 5 tax sale as provided in section 446.9. The owner of a home 38 6 who sells the home between July 1 and December 31 and obtains 38 7 a tax clearance statement is responsible only for the 38 8 September tax payment and is not required to pay taxes for 38 9 subsequent tax periods. If the owner of a home located in a 38 10 manufactured home community or mobile home park sells the 38 11 home, obtains a tax clearance statement, and obtains a 38 12 replacement home to be located in a manufactured home 38 13 community or mobile home park, the owner shall not pay taxes 38 14 under this chapter for the newly acquired home for the same 38 15 tax period that the owner has paid taxes on the home sold. 38 16 Interest for delinquent taxes shall be calculated to the 38 17 nearest whole dollar. In calculating interest each fraction 38 18 of a month shall be counted as an entire month. 38 19 2. The home owners upon issuance of a certificate of title 38 20 or upon transporting to a new site shall file the address, 38 21 township, and school district, of the location where the home 38 22 is parked with the county treasurer's office. Failure to 38 23 comply is punishable as set out in section 435.18.When the38 24new location is outside of a manufactured home community or38 25mobile home park, theThe county treasurer shall provide to 38 26 the assessor a copy of the tax clearance statement for 38 27 purposes of assessment as real estate on the following January 38 28 1. 38 29 4. The tax is a lien on the vehicle senior to any other 38 30 lien upon it except a judgment obtained in an action to 38 31 dispose of an abandoned home under section 555B.8. The home 38 32 bearing a current registration issued by any other state and 38 33 remaining within this state for an accumulated period not to 38 34 exceed ninety days in any twelve-month period is not subject 38 35 to Iowa tax. However, when one or more persons occupying a 39 1 home bearing a foreign registration are employed in this 39 2 state, there is no exemption from the Iowa tax.This tax is39 3in lieu of all other taxes general or local on a home.39 4 Sec. 66. Section 435.26, subsection 1, paragraph a, Code 39 5 2003, is amended to read as follows: 39 6 a. A mobile home or manufactured home which is located 39 7 outside a manufactured home community or mobile home park 39 8shall be converted to real estate by beingshall be placed on 39 9 a permanent foundation and shall be assessed for real estate 39 10 taxes.A home, after conversion to real estate, is eligible39 11for the homestead tax credit and the military tax exemption as39 12provided in sections 425.2 and 426A.11.Such mobile home or 39 13 manufactured home is subject to the requirements of this 39 14 section. 39 15 Sec. 67. Section 435.27, subsection 1, Code 2003, is 39 16 amended to read as follows: 39 17 1. A mobile home or manufactured homeconverted to real39 18estateunder section 435.26may be reconverted to a home as39 19provided in this section when itthat is moved to a 39 20 manufactured home community or mobile home park or a 39 21 manufactured or mobile home retailer's inventory is subject to 39 22 the requirements of this section.When the home is located39 23within a manufactured home community or mobile home park, the39 24home shall be taxed pursuant to section 435.22, subsection 1.39 25 Sec. 68. Section 435.27, subsection 3, Code 2003, is 39 26 amended by striking the subsection. 39 27 Sec. 69. Section 435.28, Code 2003, is amended to read as 39 28 follows: 39 29 435.28 COUNTY TREASURER TO NOTIFY ASSESSOR. 39 30 Upon issuance of a certificate of title to a mobile home or 39 31 manufactured home which is not located in amanufactured home39 32community or mobile home park ordealer's inventory, the 39 33 county treasurer shall notify the assessor of the existence of 39 34 the home for tax assessment purposes. 39 35 Sec. 70. Section 435.35, Code 2003, is amended to read as 40 1 follows: 40 2 435.35 EXISTING HOME OUTSIDE OF MANUFACTURED HOME 40 3 COMMUNITY OR MOBILE HOME PARK – EXEMPTION. 40 4 A taxable mobile home or manufactured home which is not 40 5 located in a manufactured home community or mobile home park 40 6 as of January 1, 1995,shall be assessed and taxed as real40 7estate. The homeisalsoexempt from the permanent foundation 40 8 requirements of this chapter until the home is relocated. 40 9 Sec. 71. Section 437.7, Code 2003, is amended to read as 40 10 follows: 40 11 437.7 TAXABLE VALUE. 40 12 The taxable value of such line or lines of which the 40 13 director of revenue and finance by this chapter is required to 40 14 find the value,shall be determined by taking thepercentage40 15of the actualreduction in value so ascertained, as provided 40 16 by section 441.21, and the ratio between the actual value and 40 17 the assessed or taxable value of the transmission line or 40 18 lines of each of said companies located outside of cities 40 19 shall be the same as in the case of the property of private 40 20 individuals. 40 21 Sec. 72. Section 441.21, subsection 1, paragraphs e, f, 40 22 and g, Code 2003, are amended by striking the paragraphs. 40 23 Sec. 73. Section 441.21, subsection 2, Code 2003, is 40 24 amended to read as follows: 40 25 2. In the event market value of the property being 40 26 assessed cannot be readily established in the foregoing 40 27 manner, then the assessor may determine the value of the 40 28 property using the other uniform and recognized appraisal 40 29 methods including its productive and earning capacity, if any, 40 30 industrial conditions, its cost, physical and functional 40 31 depreciation and obsolescence and replacement cost, and all 40 32 other factors which would assist in determining the fair and 40 33 reasonable market value of the property but the actual value 40 34 shall not be determined by use of only one such factor. The 40 35 following shall not be taken into consideration: Special 41 1 value or use value of the property to its present owner, and 41 2 the good will or value of a business which uses the property 41 3 as distinguished from the value of the property as property. 41 4 However, in assessing property that is rented or leased to 41 5 low-income individuals and families as authorized by section 41 6 42 of the Internal Revenue Code, as amended, and which section 41 7 limits the amount that the individual or family pays for the 41 8 rental or lease of units in the property, the assessor shall 41 9 use the productive and earning capacity from the actual rents 41 10 received as a method of appraisal and shall take into account 41 11 the extent to which that use and limitation reduces the market 41 12 value of the property. The assessor shall not consider any 41 13 tax credit equity or other subsidized financing as income 41 14 provided to the property in determining the assessed value. 41 15 Upon adoption of uniform rules by the revenue department or 41 16 succeeding authority covering assessments and valuations of 41 17 such properties, said valuation on such properties shall be 41 18 determined in accordancetherewithwith such uniform rules for 41 19 assessment purposes to assure uniformity, but such rules shall 41 20 not be inconsistent with or change the foregoing means of 41 21 determining the actual, market, taxable, and assessed values. 41 22 In the event market value of newly constructed residential 41 23 property being assessed cannot be readily established because 41 24 of insufficient comparable sales, the assessor shall use the 41 25 replacement cost method to value the property. 41 26 Sec. 74. Section 441.21, subsection 4, Code 2003, is 41 27 amended by striking the subsection and inserting in lieu 41 28 thereof the following: 41 29 4. For valuations established as of January 1, 2004, the 41 30 actual value at which residential property is assessed shall 41 31 be reduced by fifty percent up to a maximum of twenty thousand 41 32 dollars on each parcel of residential property assessed for 41 33 taxation. The reduction shall be applied to an improved 41 34 parcel only. 41 35 Sec. 75. Section 441.21, subsection 5, Code 2003, is 42 1 amended to read as follows: 42 2 5.For valuations established as of January 1, 1979,42 3commercial property and industrial property, excluding42 4properties referred to in section 427A.1, subsection 7, shall42 5be assessed as a percentage of the actual value of each class42 6of property. The percentage shall be determined for each42 7class of property by the director of revenue for the state in42 8accordance with the provisions of this section. For42 9valuations established as of January 1, 1979, the percentage42 10shall be the quotient of the dividend and divisor as defined42 11in this section. The dividend for each class of property42 12shall be the total actual valuation for each class of property42 13established for 1978, plus six percent of the amount so42 14determined. The divisor for each class of property shall be42 15the valuation for each class of property established for 1978,42 16as reported by the assessors on the abstracts of assessment42 17for 1978, plus the amount of value added to the total actual42 18value by the revaluation of existing properties in 1979 as42 19equalized by the director of revenue pursuant to section42 20441.49.For valuations established as of January 1, 1979, 42 21 property valued by the department of revenue pursuant to 42 22 sections 428.24 through 428.29, and chapters428,433, 437, 42 23 and 438 shall be considered as one class of property and shall 42 24 be assessed as a percentage of its actual value. The 42 25 percentage shall be determined by the director of revenue in 42 26 accordance with the provisions of this section. For 42 27 valuations established as of January 1, 1979, the percentage 42 28 shall be the quotient of the dividend and divisor as defined 42 29 in this section. The dividend shall be the total actual 42 30 valuation established for 1978 by the department of revenue, 42 31 plus ten percent of the amount so determined. The divisor for 42 32 property valued by the department of revenue pursuant to 42 33 sections 428.24 through 428.29 and chapters428,433, 437, and 42 34 438 shall be the valuation established for 1978, plus the 42 35 amount of value added to the total actual value by the 43 1 revaluation of the property by the department of revenue as of 43 2 January 1, 1979.For valuations established as of January 1,43 31980, commercial property and industrial property, excluding43 4properties referred to in section 427A.1, subsection 7, shall43 5be assessed at a percentage of the actual value of each class43 6of property. The percentage shall be determined for each43 7class of property by the director of revenue for the state in43 8accordance with the provisions of this section. For43 9valuations established as of January 1, 1980, the percentage43 10shall be the quotient of the dividend and divisor as defined43 11in this section. The dividend for each class of property43 12shall be the dividend as determined for each class of property43 13for valuations established as of January 1, 1979, adjusted by43 14the product obtained by multiplying the percentage determined43 15for that year by the amount of any additions or deletions to43 16actual value, excluding those resulting from the revaluation43 17of existing properties, as reported by the assessors on the43 18abstracts of assessment for 1979, plus four percent of the43 19amount so determined. The divisor for each class of property43 20shall be the total actual value of all such property in 1979,43 21as equalized by the director of revenue pursuant to section43 22441.49, plus the amount of value added to the total actual43 23value by the revaluation of existing properties in 1980. The43 24director shall utilize information reported on the abstracts43 25of assessment submitted pursuant to section 441.45 in43 26determining such percentage.For valuations established as of 43 27 January 1, 1980, property valued by the department of revenue 43 28 pursuant to sections 428.24 through 428.29, and chapters428,43 29 433, 437, and 438 shall be assessed at a percentage of its 43 30 actual value. The percentage shall be determined by the 43 31 director of revenue in accordance with the provisions of this 43 32 section. For valuations established as of January 1, 1980, 43 33 the percentage shall be the quotient of the dividend and 43 34 divisor as defined in this section. The dividend shall be the 43 35 total actual valuation established for 1979 by the department 44 1 of revenue, plus eight percent of the amount so determined. 44 2 The divisor for property valued by the department of revenue 44 3 pursuant to sections 428.24 through 428.29, and chapters428,44 4 433, 437, and 438 shall be the valuation established for 1979, 44 5 plus the amount of value added to the total actual value by 44 6 the revaluation of the property by the department of revenue 44 7 as of January 1, 1980.For valuations established as of44 8January 1, 1981, and each year thereafter, the percentage of44 9actual value as equalized by the director of revenue and44 10finance as provided in section 441.49 at which commercial44 11property and industrial property, excluding properties44 12referred to in section 427A.1, subsection 7, shall be assessed44 13shall be calculated in accordance with the methods provided44 14herein, except that any references to six percent in this44 15subsection shall be four percent.For valuations established 44 16 as of January 1, 1981, and each year thereafter, the 44 17 percentage of actual value at which property valued by the 44 18 department of revenue and finance pursuant to sections 428.24 44 19 through 428.29, and chapters428,433, 437, and 438 shall be 44 20 assessed shall be calculated in accordance with the methods 44 21 providedhereinin this section, except that any references to 44 22 ten percent in this subsection shall be eight percent. 44 23 Beginning with valuations established as of January 1, 1979, 44 24 and each year thereafter, property valued by the department of 44 25 revenue and finance pursuant to chapter 434 shall also be 44 26 assessed at a percentage of its actual value which percentage 44 27 shall be equal to the percentage determined by the director of 44 28 revenue and finance for commercial property, industrial 44 29 property, or property valued by the department of revenue and 44 30 finance pursuant to sections 428.24 through 428.29, and 44 31 chapters428,433, 437, and 438, whichever is lowest. 44 32 Sec. 76. Section 441.21, Code 2003, is amended by adding 44 33 the following new subsections: 44 34 NEW SUBSECTION. 5A. For valuations established as of 44 35 January 1, 2004, the actual value at which commercial property 45 1 and industrial property is assessed shall be reduced by fifty 45 2 percent up to a maximum of twenty-five thousand dollars on 45 3 each parcel of commercial property or industrial property 45 4 assessed for taxation. The reduction shall be applied to an 45 5 improved parcel only. 45 6 NEW SUBSECTION. 5B. For valuations established as of 45 7 January 1, 2004, the actual value at which agricultural 45 8 property is assessed shall be reduced by fifty percent up to a 45 9 maximum of sixty-five thousand dollars per farm unit. For 45 10 purposes of this subsection, "farm unit" means a single 45 11 contiguous tract of agricultural land, or two or more adjacent 45 12 tracts of agricultural land upon which farming operations are 45 13 being conducted by a person who owns or is purchasing or 45 14 renting all of the land, or by that person's tenant or 45 15 tenants. If a landowner has multiple farm tenants, the land 45 16 on which farming operations are being conducted by each tenant 45 17 is a separate farm unit. Before assigning assessed value per 45 18 tract of agricultural land, the assessor shall establish a per 45 19 acre assessment for the agricultural property. 45 20 Sec. 77. Section 441.21, subsections 9 and 10, Code 2003, 45 21 are amended to read as follows: 45 22 9. Not later than November 1,19792004, and November 1 of 45 23 each subsequent year, the director shall certify to the county 45 24 auditor of each county the percentages of actual value at 45 25 whichresidential property, agricultural property, commercial45 26property, industrial property, andproperty valued by the 45 27 department of revenue and finance pursuant to sections 428.24 45 28 through 428.29, and chapters428,433, 434, 437, and 438 in 45 29 each assessing jurisdiction in the county shall be assessed 45 30 for taxation. The county auditor shall proceed to determine 45 31 the assessed values ofagricultural property, residential45 32property, commercial property, industrial property, and45 33 property valued by the department of revenue and finance 45 34 pursuant to sections 428.24 through 428.29, and chapters428,45 35 433, 434, 437, and 438 by applying such percentages to the 46 1 current actual value of such property, as reported to the 46 2 county auditor by the assessor, and the assessed values so 46 3 determined shall be the taxable values of such properties upon 46 4 which the levy shall be made. 46 5 10. The percentage of actual value computed by the 46 6 director for agricultural property, residential property, 46 7 commercial property, industrial property, and property valued 46 8 by the department of revenue and finance pursuant to sections 46 9 428.24 through 428.29, and chapters428,433, 434, 437, and 46 10 438 and used to determine assessed values of those classes of 46 11 property does not constitute a rule as defined in section 46 12 17A.2, subsection 11. 46 13 Sec. 78. Section 441.21, Code 2003, is amended by adding 46 14 the following new subsection: 46 15 NEW SUBSECTION. 13. a. The reduction amounts in 46 16 subsections 4, 5A, and 5B shall each year be increased for 46 17 inflation. Upon determination of the latest cumulative 46 18 inflation factor, the director of revenue and finance shall 46 19 multiply each dollar amount set forth in subsections 4, 5A, 46 20 and 5B by this cumulative inflation factor, shall round off 46 21 the resulting product to the nearest dollar, and shall 46 22 transmit the result to each city and county assessor for each 46 23 assessment year. 46 24 b. For purposes of this subsection, "cumulative inflation 46 25 factor" means the product of the annual inflation factor for 46 26 the 2004 calendar year and all annual inflation factors for 46 27 subsequent calendar years as determined pursuant to this 46 28 subsection. The cumulative inflation factor applies to all 46 29 tax years beginning on or after January 1 of the calendar year 46 30 for which the latest annual inflation factor has been 46 31 determined. 46 32 c. In determining the annual inflation factor, the 46 33 department shall use the annual percent change, but not less 46 34 than zero percent, in the gross domestic product price 46 35 deflator computed for the second quarter of the calendar year 47 1 by the bureau of economic analysis of the United States 47 2 department of commerce and shall add all of that percent 47 3 change to one hundred percent. The annual inflation factor 47 4 and the cumulative inflation factor shall each be expressed as 47 5 a percentage rounded to the nearest one-tenth of one percent. 47 6 The annual inflation factor shall not be less than one hundred 47 7 percent. 47 8 d. The annual inflation factor for the 2004 assessment 47 9 year is one hundred percent. 47 10 Sec. 79. Section 441.21, Code 2003, is amended by adding 47 11 the following new subsection: 47 12 NEW SUBSECTION. 14. a. A tract of land containing an 47 13 animal feeding operation structure as defined in section 47 14 459.102, must be owned by an owner as defined in this 47 15 subsection and a designated person must be actively engaged in 47 16 farming during the calendar year preceding the calendar year 47 17 in which the land is assessed in order to be assessed and 47 18 taxed as agricultural property. All other tracts of land 47 19 containing an animal feeding operation structure shall be 47 20 assessed and taxed as commercial property. 47 21 b. For purposes of this subsection: 47 22 (1) "Actively engaged in farming" means the designated 47 23 person is personally involved in the production of crops and 47 24 livestock on the eligible tract on a regular, continuous, and 47 25 substantial basis. However, a lessor, whether under a cash or 47 26 a crop share lease, is not actively engaged in farming on the 47 27 area of the tract covered by the lease. This provision 47 28 applies to both written and oral leases. 47 29 (2) "Agricultural land" means land in tracts of ten acres 47 30 or more excluding any buildings or other structures located on 47 31 the land, and not laid off into lots of less than ten acres or 47 32 divided by streets and alleys into parcels of less than ten 47 33 acres, and in good faith used for agricultural or 47 34 horticultural purposes. Any land in tracts laid off or 47 35 platted into lots of less than ten acres belonging to and a 48 1 part of other lands of more than ten acres and in good faith 48 2 used for agricultural or horticultural purposes is entitled to 48 3 the benefits of this chapter. 48 4 (3) "Crop" or "crop production" includes pastureland. 48 5 (4) "Designated person" means one of the following: 48 6 (a) If the owner is an individual, the designated person 48 7 includes the owner of the tract, the owner's spouse, the 48 8 owner's child or stepchild, and their spouses, or the owner's 48 9 relative within the third degree of consanguinity, and the 48 10 relative's spouse. 48 11 (b) If the owner is a partnership, a partner or the 48 12 partner's spouse. 48 13 (c) If the owner is a family farm corporation, a family 48 14 member who is a shareholder of the family farm corporation or 48 15 the shareholder's spouse. 48 16 (d) If the owner is an authorized farm corporation, a 48 17 shareholder who owns at least fifty-one percent of the stock 48 18 of the authorized farm corporation or the shareholder's 48 19 spouse. 48 20 (e) If the owner is an individual who leases the tract to 48 21 a family farm corporation, a shareholder of the corporation if 48 22 the combined stock of the family farm corporation owned by the 48 23 owner of the tract and persons related to the owner as 48 24 enumerated in subparagraph subdivision (a) is equal to at 48 25 least fifty-one percent of the stock of the family farm 48 26 corporation. 48 27 (f) If the owner is an individual who leases the tract to 48 28 a partnership, a partner if the combined partnership interest 48 29 owned by a designated person as defined in subparagraph 48 30 subdivision (a) is equal to at least fifty-one percent of the 48 31 ownership interest of the partnership. 48 32 (5) "Eligible tract" or "eligible tract of agricultural 48 33 land" means an area of agricultural land which meets all of 48 34 the following: 48 35 (a) Is comprised of all of the contiguous tracts under 49 1 identical legal ownership that are located within the same 49 2 county. 49 3 (b) In the aggregate more than half the acres of the 49 4 contiguous tract are devoted to the production of crops or 49 5 livestock by a designated person who is actively engaged in 49 6 farming. 49 7 (c) For purposes of subparagraph (2), if some or all of 49 8 the contiguous tract is being farmed under a lease 49 9 arrangement, the activities of the lessor do not constitute 49 10 being actively engaged in farming on the areas of the tract 49 11 covered by the lease. If the lessee is a designated person 49 12 who is actively engaged in farming, the acres under lease may 49 13 be considered in determining whether more than half the acres 49 14 of the contiguous tract are devoted to the production of crops 49 15 or livestock. 49 16 (6) "Owner" means any of the following: 49 17 (a) An individual who holds the fee simple title to the 49 18 agricultural land. 49 19 (b) An individual who owns the agricultural land under a 49 20 contract of purchase which has been recorded in the office of 49 21 the county recorder of the county in which the agricultural 49 22 land is located. 49 23 (c) An individual who owns the agricultural land under 49 24 devise or by operation of the inheritance laws, where the 49 25 whole interest passes or where the divided interest is shared 49 26 only by individuals related or formerly related to each other 49 27 by blood, marriage, or adoption. 49 28 (d) An individual who owns the agricultural land under a 49 29 deed which conveys a divided interest, where the divided 49 30 interest is shared only by individuals related or formerly 49 31 related to each other by blood, marriage, or adoption. 49 32 (e) A partnership where all partners are related or 49 33 formerly related to each other by blood, marriage, or 49 34 adoption. 49 35 (f) A family farm corporation or authorized farm 50 1 corporation, as both are defined in section 9H.1, which owns 50 2 the agricultural land. 50 3 Sec. 80. NEW SECTION. 441.21A AGRICULTURAL LAND RESERVE. 50 4 1. Land classified for property tax purposes as 50 5 agricultural land shall, upon application of the owner by 50 6 January 10 of the assessment year, be placed in agricultural 50 7 land reserve by the assessor subject to this section. 50 8 2. An eligible tract of agricultural land shall be placed 50 9 in an agricultural land reserve if both of the following 50 10 apply: 50 11 a. The tract is owned by an owner as defined in this 50 12 section and a designated person is actively engaged in farming 50 13 during the calendar year preceding the calendar year in which 50 14 the land is assessed. 50 15 b. The assessed valuation of the land per acre exceeds the 50 16 average assessed valuation per acre of agricultural land in 50 17 the county by an amount equal to twenty-five percent of the 50 18 average valuation per acre of agricultural land in the county. 50 19 3. Agricultural land placed in an agricultural land 50 20 reserve shall be assessed for property tax purposes at the 50 21 average assessed valuation per acre of agricultural land in 50 22 the county. The assessment under this section shall continue 50 23 until the land no longer qualifies for placement in an 50 24 agricultural land reserve pursuant to subsection 2. 50 25 4. Land no longer qualifying for placement in an 50 26 agricultural land reserve is subject to a recapture tax. The 50 27 tax shall be computed by multiplying the consolidated levy for 50 28 each of the years the land was in agricultural land reserve 50 29 times the assessed value of the land that would have been 50 30 taxed but for the special valuation provisions of this 50 31 section. This tax shall be entered against the property on 50 32 the tax list for the current year and shall constitute a lien 50 33 against the property in the same manner as a lien for property 50 34 taxes. The tax when collected shall be apportioned in the 50 35 manner provided for the apportionment of the property taxes 51 1 for the applicable tax year. 51 2 5. For purposes of this section: 51 3 a. "Actively engaged in farming" means the designated 51 4 person is personally involved in the production of crops and 51 5 livestock on the eligible tract on a regular, continuous, and 51 6 substantial basis. However, a lessor, whether under a cash or 51 7 a crop share lease, is not actively engaged in farming on the 51 8 area of the tract covered by the lease. This provision 51 9 applies to both written and oral leases. 51 10 b. "Agricultural land" means land in tracts of ten acres 51 11 or more excluding any buildings or other structures located on 51 12 the land, and not laid off into lots of less than ten acres or 51 13 divided by streets and alleys into parcels of less than ten 51 14 acres, and in good faith used for agricultural or 51 15 horticultural purposes. Any land in tracts laid off or 51 16 platted into lots of less than ten acres belonging to and a 51 17 part of other lands of more than ten acres and in good faith 51 18 used for agricultural or horticultural purposes is entitled to 51 19 the benefits of this chapter. 51 20 c. "Crop" or "crop production" includes pastureland. 51 21 d. "Designated person" means one of the following: 51 22 (1) If the owner is an individual, the designated person 51 23 includes the owner of the tract, the owner's spouse, the 51 24 owner's child or stepchild, and their spouses, or the owner's 51 25 relative within the third degree of consanguinity, and the 51 26 relative's spouse. 51 27 (2) If the owner is a partnership, a partner or the 51 28 partner's spouse. 51 29 (3) If the owner is a family farm corporation, a family 51 30 member who is a shareholder of the family farm corporation or 51 31 the shareholder's spouse. 51 32 (4) If the owner is an authorized farm corporation, a 51 33 shareholder who owns at least fifty-one percent of the stock 51 34 of the authorized farm corporation or the shareholder's 51 35 spouse. 52 1 (5) If the owner is an individual who leases the tract to 52 2 a family farm corporation, a shareholder of the corporation if 52 3 the combined stock of the family farm corporation owned by the 52 4 owner of the tract and persons related to the owner as 52 5 enumerated in subparagraph (1) is equal to at least fifty-one 52 6 percent of the stock of the family farm corporation. 52 7 (6) If the owner is an individual who leases the tract to 52 8 a partnership, a partner if the combined partnership interest 52 9 owned by a designated person as defined in subparagraph (1) is 52 10 equal to at least fifty-one percent of the ownership interest 52 11 of the partnership. 52 12 e. "Eligible tract" or "eligible tract of agricultural 52 13 land" means an area of agricultural land which meets all of 52 14 the following: 52 15 (1) Is comprised of all of the contiguous tracts under 52 16 identical legal ownership that are located within the same 52 17 county. 52 18 (2) In the aggregate more than half the acres of the 52 19 contiguous tract are devoted to the production of crops or 52 20 livestock by a designated person who is actively engaged in 52 21 farming. 52 22 (3) For purposes of paragraph "b", if some or all of the 52 23 contiguous tract is being farmed under a lease arrangement, 52 24 the activities of the lessor do not constitute being actively 52 25 engaged in farming on the areas of the tract covered by the 52 26 lease. If the lessee is a designated person who is actively 52 27 engaged in farming, the acres under lease may be considered in 52 28 determining whether more than half the acres of the contiguous 52 29 tract are devoted to the production of crops or livestock. 52 30 f. "Owner" means any of the following: 52 31 (1) An individual who holds the fee simple title to the 52 32 agricultural land. 52 33 (2) An individual who owns the agricultural land under a 52 34 contract of purchase which has been recorded in the office of 52 35 the county recorder of the county in which the agricultural 53 1 land is located. 53 2 (3) An individual who owns the agricultural land under 53 3 devise or by operation of the inheritance laws, where the 53 4 whole interest passes or where the divided interest is shared 53 5 only by individuals related or formerly related to each other 53 6 by blood, marriage, or adoption. 53 7 (4) An individual who owns the agricultural land under a 53 8 deed which conveys a divided interest, where the divided 53 9 interest is shared only by individuals related or formerly 53 10 related to each other by blood, marriage, or adoption. 53 11 (5) A partnership where all partners are related or 53 12 formerly related to each other by blood, marriage, or 53 13 adoption. 53 14 (6) A family farm corporation or authorized farm 53 15 corporation, as both are defined in section 9H.1, which owns 53 16 the agricultural land. 53 17 Sec. 81. Section 441.22, Code 2003, is amended to read as 53 18 follows: 53 19 441.22 FOREST AND FRUIT-TREE RESERVATIONS. 53 20 Forest and fruit-tree reservations fulfilling the 53 21 conditions of sections 427C.1 to 427C.13 shall be exempt from 53 22 taxation, except as otherwise provided in section 427C.12. In 53 23 all other cases where trees are planted upon any tract of 53 24 land, without regard to area, for forest, fruit, shade, or 53 25 ornamental purposes, or for windbreaks, the assessor shall not 53 26 increase the valuation of the property because of such 53 27 improvements. 53 28 Sec. 82. Section 441.40, Code 2003, is amended to read as 53 29 follows: 53 30 441.40 COSTS, FEES AND EXPENSES APPORTIONED. 53 31 The clerk of the court shall likewise certify to the county 53 32 treasurer the costs assessed by the court on any appeal from a 53 33 board of review to the district court, in all cases where said 53 34 costs are taxed against the board of review or any taxing 53 35 body. The district court may award payment of the property 54 1 owner's or aggrieved taxpayer's attorney fees as part of the 54 2 costs assessed by the court to be taxed against the board of 54 3 review or any taxing body. Thereupon the county treasurer 54 4 shall compute and apportion the said costs between the various 54 5 taxing bodies participating in the proceeds of the collection 54 6 of the taxes involved in any such appeal, and said treasurer 54 7 shall so compute and apportion the various amounts which said 54 8 taxing bodies are required to pay in proportion to the amount 54 9 of taxes each of said taxing bodies is entitled to receive 54 10 from the whole amount of taxes involved in each of such 54 11 appeals. The said county treasurer shall deduct from the 54 12 proceeds of all general taxes collected the amount of costs so 54 13 computed and apportioned by the treasurer from the moneys due 54 14 to each taxing body from general taxes collected. The amount 54 15 so deducted shall be certified to each taxing body in lieu of 54 16 moneys collected. Said county treasurer shall pay to the 54 17 clerk of the district court the amount of said costs so 54 18 computed, apportioned and collected by the treasurer in all 54 19 cases now on file or hereafter filed in which said costs have 54 20 not been paid. 54 21 Sec. 83. Section 441.73, subsection 4, Code 2003, is 54 22 amended to read as follows: 54 23 4. The executive council shall transfer for the fiscal 54 24 year beginning July 1, 1992, and each fiscal year thereafter, 54 25 fromfundsthe fund established insectionssection 405A.8, 54 26425.1, and 426.1,an amount necessary to pay litigation 54 27 expenses. The amount of the fund for each fiscal year shall 54 28 not exceed seven hundred thousand dollars. The executive 54 29 council shall determine annually theproportionate amounts54 30 amount to be transferred from thethree separate fundsfund. 54 31 At any time when no litigation is pending or in progress the 54 32 balance in the litigation expense fund shall not exceed one 54 33 hundred thousand dollars. Any excess moneys shall be 54 34 transferred in a proportionate amount back to thefundsfund 54 35 from which they were originally transferred. 55 1 Sec. 84. Section 443.2, unnumbered paragraph 2, Code 2003, 55 2 is amended to read as follows: 55 3 The county auditor shall list the aggregate actual value 55 4 and the aggregate taxable value of all taxable property within 55 5 the county and each political subdivision including property 55 6 subject to the statewide property tax imposed under section 55 7 437A.18 on the tax list in order that the actual value of the 55 8 taxable property within the county or a political subdivision 55 9 may be ascertained and shown by the tax list for the purpose 55 10 of computing the debt-incurring capacity of the county or 55 11 political subdivision. As used in this section, "actual 55 12 value" is the value determined under section 441.21, 55 13 subsections 1 to 3, prior to the reductionto a percentage of55 14 in actual value as otherwise provided in section 441.21. 55 15 "Actual value" of property subject to statewide property tax 55 16 is the assessed value under section 437A.18. 55 17 Sec. 85. NEW SECTION. 444.29 PROPERTY TAX LIMITATION. 55 18 1. a. For property taxes due and payable in the fiscal 55 19 year beginning July 1, 2005, and all subsequent fiscal years, 55 20 property taxes levied by a county against residential property 55 21 shall not exceed the following percentages of the actual value 55 22 of the property as determined by the assessor after the 55 23 reduction in section 441.21, subsection 4, is applied: 55 24 (1) In the incorporated areas of the county, three-eighths 55 25 of one percent. 55 26 (2) In the unincorporated areas of the county, three- 55 27 fourths of one percent. 55 28 b. For property taxes due and payable in the fiscal year 55 29 beginning July 1, 2005, and all subsequent fiscal years, 55 30 property taxes levied by a city against residential property 55 31 shall not exceed an amount equal to one percent of the actual 55 32 value of the property as determined by the assessor after the 55 33 reduction in section 441.21, subsection 4, is applied. 55 34 2. a. (1) For property taxes due and payable in the 55 35 fiscal year beginning July 1, 2005, property taxes levied by a 56 1 county against commercial property shall not exceed the 56 2 following percentages of the actual value of the property as 56 3 determined by the assessor after the reduction in section 56 4 441.21, subsection 5A, is applied: 56 5 (a) In the incorporated areas of the county, one percent. 56 6 (b) In the unincorporated areas of the county, two 56 7 percent. 56 8 (2) For property taxes due and payable in the fiscal year 56 9 beginning July 1, 2006, property taxes levied by a county 56 10 against commercial property shall not exceed the following 56 11 percentages of the actual value of the property as determined 56 12 by the assessor after the reduction in section 441.21, 56 13 subsection 5A, is applied: 56 14 (a) In the incorporated areas of the county, seven-eighths 56 15 of one percent. 56 16 (b) In the unincorporated areas of the county, one and 56 17 three-fourths percent. 56 18 (3) For property taxes due and payable in the fiscal year 56 19 beginning July 1, 2007, and all subsequent fiscal years, 56 20 property taxes levied by a county against commercial property 56 21 shall not exceed the following percentages of the actual value 56 22 of the property as determined by the assessor after the 56 23 reduction in section 441.21, subsection 5A, is applied: 56 24 (a) In the incorporated areas of the county, three-fourths 56 25 of one percent. 56 26 (b) In the unincorporated areas of the county, one and 56 27 one-half percent. 56 28 b. (1) For property taxes due and payable in the fiscal 56 29 year beginning July 1, 2005, property taxes levied by a city 56 30 against commercial property shall not exceed an amount equal 56 31 to two percent of the actual value of the property as 56 32 determined by the assessor after the reduction in section 56 33 441.21, subsection 5A, is applied. 56 34 (2) For property taxes due and payable in the fiscal year 56 35 beginning July 1, 2006, property taxes levied by a city 57 1 against commercial property shall not exceed an amount equal 57 2 to one and three-fourths percent of the actual value of the 57 3 property as determined by the assessor after the reduction in 57 4 section 441.21, subsection 5A, is applied. 57 5 (3) For property taxes due and payable in the fiscal year 57 6 beginning July 1, 2007, and all subsequent fiscal years, 57 7 property taxes levied by a city against commercial property 57 8 shall not exceed an amount equal to one and one-half percent 57 9 of the actual value of the property as determined by the 57 10 assessor after the reduction in section 441.21, subsection 5A, 57 11 is applied. 57 12 3. a. For property taxes due and payable in the fiscal 57 13 year beginning July 1, 2005, and all subsequent fiscal years, 57 14 property taxes levied by a county against industrial property 57 15 shall not exceed the following percentages of the actual value 57 16 of the property as determined by the assessor after the 57 17 reduction in section 441.21, subsection 4, is applied: 57 18 (1) In the incorporated areas of the county, one percent. 57 19 (2) In the unincorporated area of the county, two percent. 57 20 b. For property taxes due and payable in the fiscal year 57 21 beginning July 1, 2005, and all subsequent fiscal years, 57 22 property taxes levied by a city against industrial property 57 23 shall not exceed an amount equal to two percent of the actual 57 24 value of the property as determined by the assessor after the 57 25 reduction in section 441.21, subsection 5A, is applied. 57 26 4. a. For property taxes due and payable in the fiscal 57 27 year beginning July 1, 2005, and all subsequent fiscal years, 57 28 property taxes levied by a county against agricultural 57 29 property shall not exceed the following percentages of the 57 30 actual value of the property as determined by the assessor 57 31 after the reduction in section 441.21, subsection 5B, is 57 32 applied: 57 33 (1) In the incorporated areas of the county, one-half of 57 34 one percent. 57 35 (2) In the unincorporated areas of the county, three- 58 1 fourths of one percent. 58 2 b. For property taxes due and payable in the fiscal year 58 3 beginning July 1, 2005, and all subsequent fiscal years, 58 4 property taxes levied by a city against agricultural property 58 5 shall not exceed an amount equal to one percent of the actual 58 6 value of the property as determined by the assessor after the 58 7 reduction in section 441.21, subsection 5B, is applied. 58 8 Sec. 86. NEW SECTION. 444.30 PROPERTY TAX LIMITATION – 58 9 CONSUMER PRICE INDEX. 58 10 1. Notwithstanding the limitations in section 444.29, the 58 11 percentage increase in the amount of property taxes to be 58 12 levied against any class of property for the next fiscal year 58 13 cannot exceed the amount computed in this section. 58 14 2. The property tax increase limitation shall be computed 58 15 as follows: 58 16 a. Determine the amount of property taxes levied as a 58 17 percent of actual value in the current fiscal year. 58 18 b. Determine the sum of the amount of actual value of all 58 19 taxable property for the current fiscal year and the increase 58 20 in actual value of property due to new construction, additions 58 21 or improvements to existing structures, expiration of tax 58 22 abatement under chapter 404, and any increase in valuation due 58 23 to reclassification of property. 58 24 c. Multiply the percent calculated in paragraph "a" times 58 25 the amount in paragraph "b". 58 26 d. Multiply the product determined in paragraph "c" times 58 27 the sum of one plus the consumer price index. 58 28 3. For purposes of this section, "consumer price index" 58 29 means the percentage rate of change in the consumer price 58 30 index as tabulated by the United States department of labor, 58 31 bureau of labor statistics, for the twelve-month period ending 58 32 June 30 of the previous fiscal year. 58 33 Sec. 87. Section 445.1, subsection 6, Code 2003, is 58 34 amended to read as follows: 58 35 6. "Taxes" means an annual ad valorem tax, a special 59 1 assessment, a drainage tax, and a rate or charge, and taxes on59 2homes pursuant to chapter 435which are collectible by the 59 3 county treasurer. 59 4 Sec. 88. Section 445.39, Code 2003, is amended to read as 59 5 follows: 59 6 445.39 INTEREST ON DELINQUENT TAXES. 59 7 If the first installment of taxes is not paid by the 59 8 delinquent date specified in section 445.37, the installment 59 9 becomes due and draws interest of three-fourths of oneand59 10one-halfpercent per month until paid, from the delinquent 59 11 date following the levy. If the last half is not paid by the 59 12 delinquent date specified for it in section 445.37, the same 59 13 interest shall be charged from the date the last half became 59 14 delinquent. However, after April 1 in a fiscal year when late 59 15 delivery of the tax list referred to in chapter 443 results in 59 16 a delinquency date later than October 1 for the first 59 17 installment, interest on delinquent first installments shall 59 18 accrue as if delivery were made on the previous June 30. The 59 19 interest imposed under this section shall be computed to the 59 20 nearest whole dollar and the amount of interest shall not be 59 21 less than one dollar. In calculating interest each fraction 59 22 of a month shall be counted as an entire month. The interest 59 23 percentage on delinquent special assessments and rates or 59 24 charges is the same as that for the first installment of 59 25 delinquent ad valorem taxes. 59 26 Sec. 89. Section 447.1, unnumbered paragraph 1, Code 2003, 59 27 is amended to read as follows: 59 28 A parcel sold under this chapter and chapter 446 may be 59 29 redeemed at any time before the right of redemption expires, 59 30 by payment to the county treasurer, to be held by the 59 31 treasurer subject to the order of the purchaser, of the amount 59 32 for which the parcel was sold, including the fee for the 59 33 certificate of purchase, and interest oftwoone percent per 59 34 month, counting each fraction of a month as an entire month, 59 35 from the month of sale, and the total amount paid by the 60 1 purchaser or the purchaser's assignee for any subsequent year, 60 2 with interest at the same rate added on the amount of the 60 3 payment for each subsequent year from the month of payment, 60 4 counting each fraction of a month as an entire month. The 60 5 amount of interest must be at least one dollar and shall be 60 6 rounded to the nearest whole dollar. Interest shall accrue on 60 7 subsequent amounts from the month of payment by the 60 8 certificate holder. 60 9 Sec. 90. Chapters 425A and 426, Code 2003, are repealed. 60 10 Sections 425.4, 425.21, 425.24, 425.25, 425.33 through 425.36, 60 11 425.39, 425.40, 426A.1A through 426A.5, 435.33, and 435.34, 60 12 Code 2003, are repealed. 60 13 Sec. 91. The homestead property tax exemption, 60 14 extraordinary homestead property tax exemption, and the 60 15 military property tax exemption are not considered newly 60 16 enacted after January 1, 1997, for purposes of section 25B.7. 60 17 Sec. 92. CODE EDITOR DIRECTIVE. The Code editor is 60 18 directed to change the term "credit" to "exemption" anywhere 60 19 it occurs in the Code in reference to the homestead credit. 60 20 The Code editor is further directed to change the terms 60 21 "credit" and "credit or reimbursement" to "exemption" anywhere 60 22 those terms occur in the Code in reference to the 60 23 extraordinary property tax credit or reimbursement. 60 24 Sec. 93. EFFECTIVE AND APPLICABILITY DATES. 60 25 1. This Act takes effect January 1, 2004, and, except as 60 26 provided in subsections 2 through 4, applies to assessment 60 27 years beginning on or after that date. 60 28 2. The sections of this Act amending section 403.19 apply 60 29 to taxes due and payable in the fiscal years beginning on or 60 30 after July 1, 2004. 60 31 3. The sections of this Act repealing chapters 425A and 60 32 426, and amending sections in chapters 425 and 426A, apply to 60 33 taxes due and payable in fiscal years beginning on or after 60 34 July 1, 2004. 60 35 4. The section of this Act amending section 427.1, 61 1 subsection 19, applies to exemptions first applied for on or 61 2 after July 1, 2004. 61 3 EXPLANATION 61 4 This bill makes several changes relating to property 61 5 taxation. 61 6 The bill provides that if a new state mandate is imposed on 61 7 or after July 1, 2004, which requires the performance of a new 61 8 activity or service or the expansion of a service beyond what 61 9 was required before July 1, 2004, the state mandate must be 61 10 fully funded. If the state mandate is not fully funded, the 61 11 affected political subdivisions are not required to comply or 61 12 implement the state mandate. Also, no fines or penalties may 61 13 be imposed on a political subdivision for failure to comply or 61 14 carry out an unfunded state mandate. 61 15 The bill strikes Code section 25B.2, subsection 3, and 61 16 rewrites it as a new section outside the intent section of 61 17 Code chapter 25B. The rewritten section removes a qualifying 61 18 phrase which limits the circumstances under which a political 61 19 subdivision may still be required to carry out an unfunded 61 20 state mandate. The rewritten section also strikes the 61 21 exception for federal mandates and for mandates relating to 61 22 public retirement systems. The rewritten section does not 61 23 include area education agencies and community colleges in the 61 24 definition of "political subdivision". 61 25 The bill increases the regular program foundation base per 61 26 pupil from 87.5 percent to 98.4 percent, beginning with the 61 27 budget year commencing July 1, 2005, to offset the increase in 61 28 school property taxes due to the changed method of assessment. 61 29 The bill provides that, beginning with the fiscal year 61 30 beginning July 1, 2005, a school district cannot levy property 61 31 taxes, other than foundation and additional property taxes, in 61 32 excess of .5 percent of the taxable value of residential and 61 33 agricultural property and 1 percent of commercial or 61 34 industrial property. The bill also provides that such school 61 35 district property taxes by class cannot increase by more than 62 1 the consumer price index for the preceding 12 months. 62 2 The bill limits the ending general fund and rural services 62 3 fund balances of a county to 25 percent of actual expenditures 62 4 from each fund in the previous fiscal year. The limitation 62 5 applies to fiscal years beginning on or after July 1, 2008. 62 6 The bill adds definitions for "ending balance target 62 7 percentage" and "gross expenditure amount" to the section 62 8 relating to funding for mental health, mental retardation, and 62 9 developmental disabilities (MH/MR/DD). The bill also requires 62 10 certification of a minimum levy for MH/MR/DD services based on 62 11 a percentage of a county's base year expenditures for services 62 12 less the amount of property tax relief to be received from the 62 13 state. 62 14 The bill provides that the revenues from school district 62 15 property taxes imposed in an urban renewal area that is 62 16 utilizing tax increment financing shall not be paid to the 62 17 municipality implementing the urban renewal plan if more than 62 18 10 percent of the property in the urban renewal area is 62 19 assessed as residential, but shall be paid to the school 62 20 district imposing the taxes unless the school district revenue 62 21 is needed to pay indebtedness for the urban renewal area 62 22 incurred before July 1, 2004. The municipality must have 62 23 certified for the school revenue by July 1, 2004. The amount 62 24 certified is to be paid to the municipality by November 1 and 62 25 May 1 following certification. 62 26 The bill strikes the state reimbursement for the homestead 62 27 property tax credit and military property tax credit and 62 28 changes the credits to exemptions from assessed value. The 62 29 homestead exemption amount is increased from $4,850 to $5,000. 62 30 The military exemption amount is increased from $1,852 to 62 31 $2,000. The amount of exemption for veterans of World War I 62 32 is reduced from $2,778 to $2,000. The military tax exemption 62 33 is expanded to all persons currently serving in the armed 62 34 forces of the United States and those honorably discharged. 62 35 The bill amends provisions relating to the elderly, 63 1 disabled, and low-income property tax credit by making it an 63 2 exemption from assessed value and by eliminating the sliding 63 3 scale for income and exemption amount and replacing it with a 63 4 flat exemption amount of $2,500. Elderly persons, disabled 63 5 persons, and low-income persons all of whom have household 63 6 income of less than $16,500 are eligible for the credit. 63 7 The bill directs the Code editor to change "credit" and 63 8 "credit or reimbursement" to "exemption" wherever it occurs in 63 9 the Code in relation to the military tax credit and the 63 10 homestead tax credit. The bill also provides that all three 63 11 exemptions are not considered to be newly enacted for purposes 63 12 of state mandate funding requirements. 63 13 The bill limits the pollution-control property tax 63 14 exemption for agricultural land owners to $100,000 of value 63 15 and it may only be claimed if the pollution-control property 63 16 is on agricultural land owned by a certain type of owner and 63 17 farmed by a person actively engaged in farming. "Owner" and 63 18 "actively engaged in farming" are defined in the bill. 63 19 The bill provides that any land in a forest reservation is 63 20 exempt from school district levies only. The bill requires 63 21 the owner of land in a forest or fruit-tree reservation to 63 22 annually certify that proper management techniques, such as 63 23 pruning and planting, are being followed. 63 24 The bill removes the square footage tax on mobile homes and 63 25 manufactured homes and replaces it with the ad valorem tax 63 26 imposed on other residences. The bill provides that real 63 27 estate of a mobile home park or land-leased community shall be 63 28 assessed and taxed as improved residential property. 63 29 The bill removes the property tax assessment limitations on 63 30 residential, commercial, industrial, and agricultural property 63 31 and requires that all such property be valued at its fair 63 32 market value. The bill provides a reduction from actual value 63 33 of 50 percent up to a maximum of $65,000 per farm unit. "Farm 63 34 unit" is defined in the bill. The bill also provides a 63 35 reduction from actual value of 50 percent up to a maximum of 64 1 $20,000 for improved residential property and 50 percent up to 64 2 a maximum of $25,000 for improved commercial and improved 64 3 industrial property. 64 4 The bill provides that attorney fees incurred by a property 64 5 owner or aggrieved taxpayer in an appeal of an assessment to 64 6 district court may be awarded by the court and assessed 64 7 against the board of review and any taxing body involved in 64 8 the appeal. 64 9 The bill makes conforming amendments to sections pertaining 64 10 to valuation of property in an urban renewal area and 64 11 valuation of property owned by telegraph and telephone 64 12 companies, express companies, and electric cooperatives. 64 13 The bill also provides that if the assessor is unable to 64 14 establish fair market value of newly constructed residential 64 15 property because of a lack of comparable sales, the assessor 64 16 shall use the replacement cost method to value the property. 64 17 The bill provides that agricultural land containing an 64 18 animal feeding operation structure shall be assessed as 64 19 agricultural land only if it is owned by a certain type of 64 20 owner and is operated by a person actively engaged in farming. 64 21 "Owner" and "actively engaged in farming" are defined in the 64 22 bill. 64 23 The bill provides that agricultural land that is owned by a 64 24 certain type of owner and farmed by a person actively engaged 64 25 in farming shall, upon application of the owner, be placed in 64 26 an agricultural land reserve for purposes of assessment and 64 27 taxation if its assessed value exceeds by 25 percent the 64 28 average assessed value for agricultural land in the county. 64 29 Land in an agricultural land reserve shall be assessed at an 64 30 amount equal to the average assessed value per acre of 64 31 agricultural land in the county. "Owner" and "actively 64 32 engaged in farming" are defined in the bill. 64 33 The bill provides that, beginning with the fiscal year 64 34 beginning in 2005, a county cannot levy property taxes in 64 35 excess of the following percentages: 65 1 For residential property and agricultural property in the 65 2 unincorporated area, three-fourths of 1 percent of the taxable 65 3 value. 65 4 For commercial property in the unincorporated area, 2 65 5 percent. The 2 percent is lowered for successive years until 65 6 it reaches 1 and one-half percent. 65 7 For industrial property in the unincorporated area, 2 65 8 percent. 65 9 For residential property in the incorporated area, three- 65 10 eighths of 1 percent. 65 11 For agricultural property in the incorporated area, one- 65 12 half of 1 percent. 65 13 For commercial property in the incorporated area, 1 65 14 percent. The 1 percent is lowered for successive years until 65 15 it reaches three-fourths of 1 percent. 65 16 For industrial property in the incorporated area, 1 65 17 percent. 65 18 The bill also provides that, beginning with the fiscal year 65 19 beginning in 2005, a city cannot levy property taxes in excess 65 20 of 1 percent of the taxable value of residential property and 65 21 agricultural property, and 2 percent for commercial property. 65 22 The 2 percent is lowered for successive years until it reaches 65 23 1 and one-half percent. For industrial property, 2 percent. 65 24 The bill also provides that city or county property taxes 65 25 by class cannot increase by more than the consumer price index 65 26 for the preceding 12 months. 65 27 The bill lowers the amount of interest that can be charged 65 28 against delinquent property taxes. The interest rate is 65 29 changed from 1 and one-half percent to three-fourths of 1 65 30 percent before tax sale. The interest rate after the 65 31 delinquent taxes are sold at tax sale is changed from 2 65 32 percent to 1 percent. 65 33 The bill repeals the family farm property tax credit and 65 34 the agricultural land property tax credit. The bill makes 65 35 conforming amendments pertaining to these repeals. 66 1 The bill takes effect January 1, 2004, and applies to 66 2 assessment years beginning on or after January 1, 2004. 66 3 The section of the bill amending Code section 403.19 on tax 66 4 increment financing applies to taxes due and payable in fiscal 66 5 years beginning on or after July 1, 2004. The sections of the 66 6 bill amending the homestead tax credit, the elderly, disabled, 66 7 and low-income tax credit, and the military tax credit and 66 8 repealing the family farm tax credit and the agricultural land 66 9 tax credit apply to taxes due and payable in fiscal years 66 10 beginning on or after July 1, 2005. The section of the bill 66 11 limiting the pollution control exemption on agricultural land 66 12 applies to exemptions first applied for on or after July 1, 66 13 2004. 66 14 LSB 1159XS 80 66 15 sc/pj/5.2
Text: SF00040 Text: SF00042 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 2003 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue Feb 18 11:45:08 CST 2003
URL: /DOCS/GA/80GA/Legislation/SF/00000/SF00041/030123.html
jhf