House File 697 H-1738 Amend the amendment, H-1735, to House File 697 as 1 follows: 2 1. By striking page 5, line 48, through page 7, 3 line 16, and inserting < 433 , 437 , and 438 , whichever 4 is lowest. Beginning with valuations established as of 5 January 1, 2012, but before January 1, 2016, property 6 valued by the department of revenue pursuant to chapter 7 434 that is not new railway property shall be assessed 8 at a percentage of its actual value equal to the 9 percentage of actual value at which commercial property 10 that is not new commercial property is assessed for the 11 same assessment year. For valuations established on 12 or after January 1, 2012, but before January 1, 2016, 13 property valued by the department of revenue pursuant 14 to chapter 434 that is new railway property shall be 15 assessed at a percentage of its actual value equal 16 to the percentage of actual value at which commercial 17 property that is new commercial property, as defined 18 in paragraph “c” , is assessed for the same assessment 19 year. For purposes of this section, “new railway 20 property” means that portion of the actual value of 21 property assessed by the director of revenue under 22 chapter 434 in excess of one hundred fifty percent of 23 such property’s value for the assessment year beginning 24 January 1, 2011, attributable to new construction, 25 renovation, or rehabilitation of the property occurring 26 on or after the effective date of this division of 27 this Act, and but for this provision would be assessed 28 as railway property. “New railway property” shall be 29 considered a subclassification of property assessed 30 by the director of revenue under chapter 434 for the 31 assessment years beginning on or after January 1, 2012, 32 but before January 1, 2016. For valuations established 33 on or after January 1, 2016, property valued by the 34 department of revenue pursuant to chapter 434 shall 35 be assessed at a percentage of its actual value equal 36 to the percentage of actual value at which commercial 37 property is assessed for the same assessment year. 38 b. For valuations established on or after January 39 1, 2012, commercial property that is not new commercial 40 property as defined in paragraph “c” , excluding 41 properties referred to in section 427A.1, subsection 8 , 42 shall be assessed as a percentage of the actual value, 43 as determined in this paragraph “b” . 44 (1) For valuations established for the assessment 45 year beginning January 1, 2012, the percentage of 46 actual value as equalized by the director of revenue as 47 provided in section 441.49 at which commercial property 48 that is not new commercial property shall be assessed 49 shall be ninety-five percent. 50 -1- H1735.3322 (1) 84 md/sc 1/ 5

(2) For valuations established for the assessment 1 year beginning January 1, 2013, the percentage of 2 actual value as equalized by the director of revenue as 3 provided in section 441.49 at which commercial property 4 that is not new commercial property shall be assessed 5 shall be ninety percent. 6 (3) For valuations established for the assessment 7 year beginning January 1, 2014, the percentage of 8 actual value as equalized by the director of revenue as 9 provided in section 441.49 at which commercial property 10 that is not new commercial property shall be assessed 11 shall be eight-five percent. 12 (4) For valuations established for the assessment 13 year beginning January 1, 2015, the percentage of 14 actual value as equalized by the director of revenue as 15 provided in section 441.49 at which commercial property 16 that is not new commercial property shall be assessed 17 shall be eighty percent. 18 c. (1) For valuations established on or after 19 January 1, 2012, but before January 1, 2016, new 20 commercial property, excluding properties referred to 21 in section 427A.1, subsection 8, shall be assessed as a 22 percentage of the actual value, as determined in this 23 paragraph “c” . 24 (2) For valuations established for assessment years 25 beginning on or after January 1, 2012, but before 26 January 1, 2016, the percentage of actual value as 27 equalized by the director of revenue as provided in 28 section 441.49 at which commercial property that is 29 new commercial property shall be assessed shall be 30 seventy-five percent. 31 (3) For purposes of this section, “new commercial 32 property” means that portion of the actual value of 33 property in excess of one hundred fifty percent of such 34 property’s value for the assessment year beginning 35 January 1, 2011, attributable to new construction, 36 renovation, or rehabilitation of the property occurring 37 on or after the effective date of this division of this 38 Act, and but for this paragraph would be assessed 39 under paragraph “b” . “New commercial property” shall be 40 considered a subclassification of commercial property 41 for the assessment years beginning on or after January 42 1, 2012, but before January 1, 2016. 43 d. (1) For valuations established on or after 44 January 1, 2016, commercial property, excluding 45 properties referred to in section 427A.1, subsection 8, 46 shall be assessed as a percentage of the actual value 47 as determined in this paragraph “d” . 48 (2) For valuations established for the assessment 49 year beginning January 1, 2016, and each assessment 50 -2- H1735.3322 (1) 84 md/sc 2/ 5

year thereafter, the percentage of actual value as 1 equalized by the director of revenue as provided in 2 section 441.49 at which commercial property shall be 3 assessed shall be seventy-five percent. 4 e. For valuations established on or after January 5 1, 2012, industrial property that is not new industrial 6 property as defined in paragraph “f” , excluding 7 properties referred to in section 427A.1, subsection 8, 8 shall be assessed as a percentage of the actual value, 9 as determined in this paragraph “e” . 10 (1) For valuations established for the assessment 11 year beginning January 1, 2012, the percentage of 12 actual value as equalized by the director of revenue as 13 provided in section 441.49 at which industrial property 14 that is not new industrial property, shall be assessed 15 shall be ninety-five percent. 16 (2) For valuations established for the assessment 17 year beginning January 1, 2013, the percentage of 18 actual value as equalized by the director of revenue as 19 provided in section 441.49 at which industrial property 20 that is not new industrial property shall be assessed 21 shall be ninety percent. 22 (3) For valuations established for the assessment 23 year beginning January 1, 2014, the percentage of 24 actual value as equalized by the director of revenue as 25 provided in section 441.49 at which industrial property 26 that is not new industrial property shall be assessed 27 shall be eighty-five percent. 28 (4) For valuations established for the assessment 29 year beginning January 1, 2015, the percentage of 30 actual value as equalized by the director of revenue as 31 provided in section 441.49 at which industrial property 32 that is not new industrial property shall be assessed 33 shall be eighty percent. 34 f. (1) For valuations established on or after 35 January 1, 2012, but before January 1, 2016, new 36 industrial property, excluding properties referred to 37 in section 427A.1, subsection 8, shall be assessed as 38 a percentage of the actual value as determined in this 39 paragraph “f” . 40 (2) For valuations established for assessment years 41 beginning on or after January 1, 2012, but before 42 January 1, 2016, the percentage of actual value as 43 equalized by the director of revenue as provided in 44 section 441.49 at which industrial property that is 45 new industrial property shall be assessed shall be 46 seventy-five percent. 47 (3) For purposes of this section, “new industrial 48 property” means that portion of the actual value of 49 property in excess of one hundred fifty percent of such 50 -3- H1735.3322 (1) 84 md/sc 3/ 5

property’s value for the assessment year beginning 1 January 1, 2011, attributable to new construction, 2 renovation, or rehabilitation of the property occurring 3 on or after the effective date of this division of 4 this Act, and but for this paragraph would be assessed 5 under paragraph “e” . “New industrial property” shall be 6 considered a subclassification of industrial property 7 for the assessment years beginning on or after January 8 1, 2012, but before January 1, 2016. 9 g. (1) For valuations established on or after 10 January 1, 2016, industrial property, excluding 11 properties referred to in section 427A.1, subsection 8, 12 shall be assessed as a percentage of the actual value 13 as determined in this paragraph “g” . 14 (2) For valuations established for the assessment 15 year beginning January 1, 2016, and each assessment 16 year thereafter, the percentage of actual value as 17 equalized by the director of revenue as provided in 18 section 441.49 at which industrial property shall be 19 assessed shall be seventy-five percent. 20 Sec. 4. Section 441.21, subsections 9 and 10, Code 21 2011, are amended to read as follows: 22 9. Not later than November 1, 1979, and November 23 1 of each subsequent year, the director shall 24 certify to the county auditor of each county the 25 percentages of actual value at which residential 26 property, agricultural property, commercial property, 27 new commercial property, industrial property, and 28 new industrial property, property valued by the 29 department of revenue pursuant to chapters 428 , 433 , 30 434 , 437 , and 438 , and new railway property in each 31 assessing jurisdiction in the county shall be assessed 32 for taxation. The county auditor shall proceed 33 to determine the assessed values of agricultural 34 property, residential property, commercial property, 35 new commercial property, industrial property, and new 36 industrial property, property valued by the department 37 of revenue pursuant to chapters 428 , 433 , 434 , 437 , 38 and 438 , and new railway property by applying such 39 percentages to the current actual value of such 40 property, as reported to the county auditor by the 41 assessor, and the assessed values so determined shall 42 be the taxable values of such properties upon which the 43 levy shall be made. 44 10. The percentage of actual value computed by 45 the director for agricultural property, residential 46 property, commercial property, new commercial property, 47 industrial property and , new industrial property, 48 property valued by the department of revenue pursuant 49 to chapters 428 , 433 , 434 , 437 , and 438 , and new 50 -4- H1735.3322 (1) 84 md/sc 4/ 5

railway property and used to determine assessed values 1 of those classes of property does not constitute a rule 2 as defined in section 17A.2, subsection 11 . > 3 2. By renumbering as necessary. 4 ______________________________ SANDS of Louisa -5- H1735.3322 (1) 84 md/sc 5/ 5 #2.