House File 697 H-1742 Amend the amendment, H-1735, to House File 697 as 1 follows: 2 1. By striking page 1, line 5, through page 25, 3 line 23, and inserting: 4 < PROPERTY TAX 5 COMMERCIAL AND INDUSTRIAL PROPERTY 6 ASSESSMENT LIMITATIONS 7 Sec. ___. Section 441.21, subsection 5, Code 2011, 8 is amended to read as follows: 9 5. a. For valuations established as of January 10 1, 1979, commercial property and industrial property, 11 excluding properties referred to in section 427A.1, 12 subsection 8 , shall be assessed as a percentage of 13 the actual value of each class of property. The 14 percentage shall be determined for each class of 15 property by the director of revenue for the state in 16 accordance with the provisions of this section . For 17 valuations established as of January 1, 1979, the 18 percentage shall be the quotient of the dividend and 19 divisor as defined in this section . The dividend 20 for each class of property shall be the total actual 21 valuation for each class of property established for 22 1978, plus six percent of the amount so determined. 23 The divisor for each class of property shall be the 24 valuation for each class of property established for 25 1978, as reported by the assessors on the abstracts 26 of assessment for 1978, plus the amount of value 27 added to the total actual value by the revaluation 28 of existing properties in 1979 as equalized by the 29 director of revenue pursuant to section 441.49 . For 30 valuations established as of January 1, 1979, property 31 valued by the department of revenue pursuant to 32 chapters 428 , 433 , 437 , and 438 shall be considered 33 as one class of property and shall be assessed as a 34 percentage of its actual value. The percentage shall 35 be determined by the director of revenue in accordance 36 with the provisions of this section . For valuations 37 established as of January 1, 1979, the percentage 38 shall be the quotient of the dividend and divisor as 39 defined in this section . The dividend shall be the 40 total actual valuation established for 1978 by the 41 department of revenue, plus ten percent of the amount 42 so determined. The divisor for property valued by 43 the department of revenue pursuant to chapters 428 , 44 433 , 437 , and 438 shall be the valuation established 45 for 1978, plus the amount of value added to the total 46 actual value by the revaluation of the property by 47 the department of revenue as of January 1, 1979. 48 For valuations established as of January 1, 1980, 49 commercial property and industrial property, excluding 50 -1- H1735.3329 (3) 84 md/sc 1/ 6 #1.

properties referred to in section 427A.1, subsection 1 8 , shall be assessed at a percentage of the actual 2 value of each class of property. The percentage 3 shall be determined for each class of property by 4 the director of revenue for the state in accordance 5 with the provisions of this section . For valuations 6 established as of January 1, 1980, the percentage 7 shall be the quotient of the dividend and divisor as 8 defined in this section . The dividend for each class 9 of property shall be the dividend as determined for 10 each class of property for valuations established as 11 of January 1, 1979, adjusted by the product obtained 12 by multiplying the percentage determined for that year 13 by the amount of any additions or deletions to actual 14 value, excluding those resulting from the revaluation 15 of existing properties, as reported by the assessors 16 on the abstracts of assessment for 1979, plus four 17 percent of the amount so determined. The divisor 18 for each class of property shall be the total actual 19 value of all such property in 1979, as equalized by 20 the director of revenue pursuant to section 441.49 , 21 plus the amount of value added to the total actual 22 value by the revaluation of existing properties in 23 1980. The director shall utilize information reported 24 on the abstracts of assessment submitted pursuant 25 to section 441.45 in determining such percentage. 26 For valuations established as of January 1, 1980, 27 property valued by the department of revenue pursuant 28 to chapters 428 , 433 , 437 , and 438 shall be assessed 29 at a percentage of its actual value. The percentage 30 shall be determined by the director of revenue in 31 accordance with the provisions of this section . For 32 valuations established as of January 1, 1980, the 33 percentage shall be the quotient of the dividend and 34 divisor as defined in this section . The dividend shall 35 be the total actual valuation established for 1979 by 36 the department of revenue, plus eight percent of the 37 amount so determined. The divisor for property valued 38 by the department of revenue pursuant to chapters 428 , 39 433 , 437 , and 438 shall be the valuation established 40 for 1979, plus the amount of value added to the total 41 actual value by the revaluation of the property by 42 the department of revenue as of January 1, 1980. For 43 valuations established as of January 1, 1981, and 44 each year thereafter, the percentage of actual value 45 as equalized by the director of revenue as provided 46 in section 441.49 at which commercial property and 47 industrial property, excluding properties referred to 48 in section 427A.1, subsection 8 , shall be assessed 49 shall be calculated in accordance with the methods 50 -2- H1735.3329 (3) 84 md/sc 2/ 6

provided herein, except that any references to six 1 percent in this subsection shall be four percent. For 2 valuations established as of January 1, 1981, and 3 each year thereafter, the percentage of actual value 4 at which property valued by the department of revenue 5 pursuant to chapters 428 , 433 , 437 , and 438 shall be 6 assessed shall be calculated in accordance with the 7 methods provided herein, except that any references to 8 ten percent in this subsection shall be eight percent. 9 Beginning with valuations established as of January 10 1, 1979, and each year thereafter, property valued 11 by the department of revenue pursuant to chapter 434 12 shall also be assessed at a percentage of its actual 13 value which percentage shall be equal to the percentage 14 determined by the director of revenue for commercial 15 property, industrial property, or property valued by 16 the department of revenue pursuant to chapters 428 , 17 433 , 437 , and 438 , whichever is lowest. 18 b. Notwithstanding paragraph “a” , for valuations 19 established for the assessment year beginning 20 January 1, 2012, through valuations established 21 for the assessment year beginning January 1, 2031, 22 the percentage of actual value, as equalized by the 23 director of revenue as provided in section 441.49, 24 at which commercial property, excluding properties 25 referred to in section 427A.1, subsection 8, shall 26 be assessed shall be the percentage of actual value 27 that commercial property was assessed in the previous 28 assessment year minus one percentage point. For 29 valuations established as of January 1, 2032, and each 30 year thereafter, the percentage of actual value, as 31 equalized by the director of revenue as provided in 32 section 441.49, at which commercial property, excluding 33 properties referred to in section 427A.1, subsection 34 8, shall be assessed shall be the percentage of actual 35 value that commercial property was assessed in the 36 assessment year beginning January 1, 2031. 37 c. Notwithstanding paragraph “a” , for valuations 38 established for the assessment year beginning 39 January 1, 2012, through valuations established 40 for the assessment year beginning January 1, 2031, 41 the percentage of actual value, as equalized by the 42 director of revenue as provided in section 441.49, 43 at which industrial property, excluding properties 44 referred to in section 427A.1, subsection 8, shall 45 be assessed shall be the percentage of actual value 46 that industrial property was assessed in the previous 47 assessment year minus one percentage point. For 48 valuations established as of January 1, 2032, and each 49 year thereafter, the percentage of actual value, as 50 -3- H1735.3329 (3) 84 md/sc 3/ 6

equalized by the director of revenue as provided in 1 section 441.49, at which industrial property, excluding 2 properties referred to in section 427A.1, subsection 3 8, shall be assessed shall be the percentage of actual 4 value that industrial property was assessed in the 5 assessment year beginning January 1, 2031. 6 Sec. ___. COMMERCIAL AND INDUSTRIAL PROPERTY TAX 7 REVIEW COMMITTEE. 8 1. Effective January 1, 2017, a commercial 9 and industrial property tax review committee is 10 established. Staffing assistance to the committee 11 shall be provided by the department of revenue and 12 the legislative services agency. The committee 13 shall consist of six members of the general assembly, 14 two appointed by the majority leader of the senate, 15 one appointed by the minority leader of the senate, 16 two appointed by the speaker of the house of 17 representatives, and one appointed by the minority 18 leader of the house of representatives. 19 2. The commercial and industrial property tax 20 review committee shall review the implementation and 21 fiscal impact of the commercial and industrial property 22 assessment limitations established in this division of 23 this Act. The commercial and industrial property tax 24 review committee shall report to the general assembly 25 by January 15, 2018. The report shall include any 26 recommended changes in laws relating to the commercial 27 and industrial property tax assessment limitations 28 established in this division of this Act. 29 Sec. ___. APPLICABILITY. This division of this 30 Act applies to assessment years beginning on or after 31 January 1, 2012. > 32 2. Page 25, after line 37 by inserting: 33 < DIVISION ___ 34 EDUCATION FINANCE 35 REGULAR PROGRAM AND CATEGORICAL STATE PERCENT 36 OF GROWTH FOR EDUCATION —— FY 2011-2012 37 Sec. ___. Section 257.8, subsection 1, Code 2011, 38 is amended to read as follows: 39 1. State percent of growth. The state percent of 40 growth for the budget year beginning July 1, 2009, is 41 four percent. The state percent of growth for the 42 budget year beginning July 1, 2010, is two percent. 43 The state percent of growth for the budget year 44 beginning July 1, 2011, is two percent. The state 45 percent of growth for each subsequent budget year shall 46 be established by statute which shall be enacted within 47 thirty days of the submission in the year preceding the 48 base year of the governor’s budget under section 8.21 . 49 The establishment of the state percent of growth for 50 -4- H1735.3329 (3) 84 md/sc 4/ 6 #2.

a budget year shall be the only subject matter of the 1 bill which enacts the state percent of growth for a 2 budget year. 3 Sec. ___. Section 257.8, subsection 2, Code 2011, 4 is amended to read as follows: 5 2. Categorical state percent of growth. The 6 categorical state percent of growth for the budget 7 year beginning July 1, 2010, is two percent. The 8 categorical state percent of growth for the budget 9 year beginning July 1, 2011, is two percent. The 10 categorical state percent of growth for each budget 11 year shall be established by statute which shall 12 be enacted within thirty days of the submission in 13 the year preceding the base year of the governor’s 14 budget under section 8.21 . The establishment of the 15 categorical state percent of growth for a budget year 16 shall be the only subject matter of the bill which 17 enacts the categorical state percent of growth for a 18 budget year. The categorical state percent of growth 19 may include state percents of growth for the teacher 20 salary supplement, the professional development 21 supplement, and the early intervention supplement. 22 Sec. ___. CODE SECTION 257.8 —— APPLICABILITY. The 23 requirements of section 257.8 regarding the time period 24 of enactment and the subject matter of the legislation 25 establishing the state percent of growth and the 26 categorical state percent of growth for a budget year 27 are not applicable to the division. The requirements 28 of section 257.8 regarding enactment of the regular 29 program state percent of growth and categorical state 30 percent of growth within thirty days of the submission 31 in the year preceding the base year of the governor’s 32 budget and the requirements that the subject matter 33 of each bill establishing the state percent of growth 34 or the categorical state percent of growth be the 35 only subject matter of the bill do not apply to this 36 division of this Act. 37 Sec. ___. APPLICABILITY. This division of this Act 38 is applicable for computing state aid under the state 39 school foundation program for the school budget year 40 beginning July 1, 2011. > 41 3. By striking page 25, line 44, through page 26, 42 line 8, and inserting: 43 < (2) “Total approved tax credits” means for the 44 tax year beginning in the 2006 calendar year, two 45 million five hundred thousand dollars, for the tax 46 year beginning in the 2007 calendar year, five million 47 dollars, and for tax years beginning on or after 48 January 1, 2008, and before January 1, 2012, seven 49 million five hundred thousand dollars. For tax years 50 -5- H1735.3329 (3) 84 md/sc 5/ 6 #3.

beginning on or after January 1, 2012, and only if 1 legislation is enacted by the eighty-fourth general 2 assembly, 2011 session, amending section 257.8, 3 subsections 1 and 2, to establish both the state 4 percent of growth and the categorical state percent 5 of growth for the budget year beginning July 1, 2011, 6 at two percent or greater than two percent, “total 7 approved tax credits” means ten million dollars. > 8 4. By renumbering as necessary. 9 ______________________________ JACOBY of Johnson ______________________________ ______________________________ ______________________________ -6- H1735.3329 (3) 84 md/sc 6/ 6 #4.