Senate File 295 S-3153 Amend Senate File 295 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < DIVISION I 4 PROPERTY ASSESSMENT LIMITATION AND REPLACEMENT 5 Section 1. Section 257.3, subsection 1, Code 2013, 6 is amended by adding the following new paragraph: 7 NEW PARAGRAPH . d. The amount paid to each school 8 district for the commercial and industrial property 9 tax replacement claim under section 441.21A shall be 10 regarded as property tax. The portion of the payment 11 which is foundation property tax shall be determined by 12 applying the foundation property tax rate to the amount 13 computed under section 441.21A, subsection 4, paragraph 14 “a” , and such amount shall be prorated pursuant to 15 section 441.21A, subsection 2, if applicable. 16 Sec. 2. Section 331.512, Code 2013, is amended by 17 adding the following new subsection: 18 NEW SUBSECTION . 13A. Carry out duties relating 19 to the calculation and payment of commercial and 20 industrial property tax replacement claims under 21 section 441.21A. 22 Sec. 3. Section 331.559, Code 2013, is amended by 23 adding the following new subsection: 24 NEW SUBSECTION . 25A. Carry out duties relating 25 to the calculation and payment of commercial and 26 industrial property tax replacement claims under 27 section 441.21A. 28 Sec. 4. Section 441.21, subsection 4, Code 2013, is 29 amended to read as follows: 30 4. For valuations established as of January 31 1, 1979, the percentage of actual value at which 32 agricultural and residential property shall be assessed 33 shall be the quotient of the dividend and divisor as 34 defined in this section . The dividend for each class 35 of property shall be the dividend as determined for 36 each class of property for valuations established as 37 of January 1, 1978, adjusted by the product obtained 38 by multiplying the percentage determined for that year 39 by the amount of any additions or deletions to actual 40 value, excluding those resulting from the revaluation 41 of existing properties, as reported by the assessors 42 on the abstracts of assessment for 1978, plus six 43 percent of the amount so determined. However, if the 44 difference between the dividend so determined for 45 either class of property and the dividend for that 46 class of property for valuations established as of 47 January 1, 1978, adjusted by the product obtained by 48 multiplying the percentage determined for that year 49 by the amount of any additions or deletions to actual 50 -1- SF295.1627 (3) 85 md/sc 1/ 11 #1.
value, excluding those resulting from the revaluation 1 of existing properties, as reported by the assessors 2 on the abstracts of assessment for 1978, is less than 3 six percent, the 1979 dividend for the other class of 4 property shall be the dividend as determined for that 5 class of property for valuations established as of 6 January 1, 1978, adjusted by the product obtained by 7 multiplying the percentage determined for that year 8 by the amount of any additions or deletions to actual 9 value, excluding those resulting from the revaluation 10 of existing properties, as reported by the assessors on 11 the abstracts of assessment for 1978, plus a percentage 12 of the amount so determined which is equal to the 13 percentage by which the dividend as determined for the 14 other class of property for valuations established as 15 of January 1, 1978, adjusted by the product obtained 16 by multiplying the percentage determined for that year 17 by the amount of any additions or deletions to actual 18 value, excluding those resulting from the revaluation 19 of existing properties, as reported by the assessors 20 on the abstracts of assessment for 1978, is increased 21 in arriving at the 1979 dividend for the other class 22 of property. The divisor for each class of property 23 shall be the total actual value of all such property 24 in the state in the preceding year, as reported by the 25 assessors on the abstracts of assessment submitted 26 for 1978, plus the amount of value added to said 27 total actual value by the revaluation of existing 28 properties in 1979 as equalized by the director of 29 revenue pursuant to section 441.49 . The director shall 30 utilize information reported on abstracts of assessment 31 submitted pursuant to section 441.45 in determining 32 such percentage. For valuations established as of 33 January 1, 1980, and each assessment year thereafter 34 beginning before January 1, 2013 , the percentage of 35 actual value as equalized by the director of revenue 36 as provided in section 441.49 at which agricultural 37 and residential property shall be assessed shall be 38 calculated in accordance with the methods provided 39 herein including the limitation of increases in 40 agricultural and residential assessed values to the 41 percentage increase of the other class of property if 42 the other class increases less than the allowable limit 43 adjusted to include the applicable and current values 44 as equalized by the director of revenue, as provided 45 in this section, Code 2013, except that any references 46 to six percent in this subsection shall be four 47 percent. For valuations established for the assessment 48 year beginning January 1, 2013, each assessment year 49 thereafter, the percentage of actual value as equalized 50 -2- SF295.1627 (3) 85 md/sc 2/ 11
by the director of revenue as provided in section 1 441.49 at which agricultural and residential property 2 shall be assessed shall be calculated in accordance 3 with the methods provided in this subsection, except 4 that any references to six percent in this subsection 5 shall be zero percent. 6 Sec. 5. Section 441.21, subsection 5, Code 2013, is 7 amended to read as follows: 8 5. a. For valuations established as of January 9 1, 1979, commercial property and industrial property, 10 excluding properties referred to in section 427A.1, 11 subsection 8 , shall be assessed as a percentage of 12 the actual value of each class of property. The 13 percentage shall be determined for each class of 14 property by the director of revenue for the state in 15 accordance with the provisions of this section . For 16 valuations established as of January 1, 1979, the 17 percentage shall be the quotient of the dividend and 18 divisor as defined in this section . The dividend 19 for each class of property shall be the total actual 20 valuation for each class of property established for 21 1978, plus six percent of the amount so determined. 22 The divisor for each class of property shall be the 23 valuation for each class of property established for 24 1978, as reported by the assessors on the abstracts 25 of assessment for 1978, plus the amount of value 26 added to the total actual value by the revaluation 27 of existing properties in 1979 as equalized by the 28 director of revenue pursuant to section 441.49 . For 29 valuations established as of January 1, 1979, property 30 valued by the department of revenue pursuant to 31 chapters 428 , 433 , 437 , and 438 shall be considered 32 as one class of property and shall be assessed as a 33 percentage of its actual value. The percentage shall 34 be determined by the director of revenue in accordance 35 with the provisions of this section . For valuations 36 established as of January 1, 1979, the percentage 37 shall be the quotient of the dividend and divisor as 38 defined in this section . The dividend shall be the 39 total actual valuation established for 1978 by the 40 department of revenue, plus ten percent of the amount 41 so determined. The divisor for property valued by 42 the department of revenue pursuant to chapters 428 , 43 433 , 437 , and 438 shall be the valuation established 44 for 1978, plus the amount of value added to the total 45 actual value by the revaluation of the property by 46 the department of revenue as of January 1, 1979. 47 For valuations established as of January 1, 1980, 48 commercial property and industrial property, excluding 49 properties referred to in section 427A.1, subsection 50 -3- SF295.1627 (3) 85 md/sc 3/ 11
8 , shall be assessed at a percentage of the actual 1 value of each class of property. The percentage 2 shall be determined for each class of property by 3 the director of revenue for the state in accordance 4 with the provisions of this section . For valuations 5 established as of January 1, 1980, the percentage 6 shall be the quotient of the dividend and divisor as 7 defined in this section . The dividend for each class 8 of property shall be the dividend as determined for 9 each class of property for valuations established as 10 of January 1, 1979, adjusted by the product obtained 11 by multiplying the percentage determined for that year 12 by the amount of any additions or deletions to actual 13 value, excluding those resulting from the revaluation 14 of existing properties, as reported by the assessors 15 on the abstracts of assessment for 1979, plus four 16 percent of the amount so determined. The divisor 17 for each class of property shall be the total actual 18 value of all such property in 1979, as equalized by 19 the director of revenue pursuant to section 441.49 , 20 plus the amount of value added to the total actual 21 value by the revaluation of existing properties in 22 1980. The director shall utilize information reported 23 on the abstracts of assessment submitted pursuant 24 to section 441.45 in determining such percentage. 25 For valuations established as of January 1, 1980, 26 property valued by the department of revenue pursuant 27 to chapters 428 , 433 , 437 , and 438 shall be assessed 28 at a percentage of its actual value. The percentage 29 shall be determined by the director of revenue in 30 accordance with the provisions of this section . For 31 valuations established as of January 1, 1980, the 32 percentage shall be the quotient of the dividend and 33 divisor as defined in this section . The dividend shall 34 be the total actual valuation established for 1979 by 35 the department of revenue, plus eight percent of the 36 amount so determined. The divisor for property valued 37 by the department of revenue pursuant to chapters 428 , 38 433 , 437 , and 438 shall be the valuation established 39 for 1979, plus the amount of value added to the total 40 actual value by the revaluation of the property by 41 the department of revenue as of January 1, 1980. For 42 valuations established as of January 1, 1981, and each 43 assessment year thereafter beginning before January 1, 44 2013 , the percentage of actual value as equalized by 45 the director of revenue as provided in section 441.49 46 at which commercial property and industrial property, 47 excluding properties referred to in section 427A.1, 48 subsection 8 , shall be assessed shall be calculated in 49 accordance with the methods provided herein, except 50 -4- SF295.1627 (3) 85 md/sc 4/ 11
that any references to six percent in this subsection 1 shall be four percent. For valuations established 2 as of January 1, 1981, and each year thereafter, the 3 percentage of actual value at which property valued 4 by the department of revenue pursuant to chapters 5 428 , 433 , 437 , and 438 shall be assessed shall be 6 calculated in accordance with the methods provided 7 herein, except that any references to ten percent in 8 this subsection shall be eight percent. Beginning 9 with valuations established as of January 1, 1979, 10 and each assessment year thereafter beginning before 11 January 1, 2013 , property valued by the department of 12 revenue pursuant to chapter 434 shall also be assessed 13 at a percentage of its actual value which percentage 14 shall be equal to the percentage determined by the 15 director of revenue for commercial property, industrial 16 property, or property valued by the department of 17 revenue pursuant to chapters 428 , 433 , 437 , and 438 , 18 whichever is lowest. For valuations established on 19 or after January 1, 2013, but before January 1, 2017, 20 commercial property and industrial property shall be 21 assessed as provided in paragraphs “b” and “c” , as 22 applicable. For valuations established as of January 23 1, 2017, and each assessment year thereafter, the 24 percentage of actual value as equalized by the director 25 of revenue as provided in section 441.49 at which 26 commercial property and industrial property, excluding 27 properties referred to in section 427A.1, subsection 28 8, shall be assessed shall be calculated in accordance 29 with the methods provided in this subsection, except 30 that any references to six percent in this subsection 31 shall be zero percent. For valuations established 32 on or after January 1, 2013, property valued by the 33 department of revenue pursuant to chapter 434 shall 34 be assessed at a percentage of its actual value equal 35 to the percentage of actual value at which property 36 assessed as commercial property is assessed for the 37 same assessment year. 38 b. For valuations established on or after January 39 1, 2013, but before January 1, 2017, commercial 40 property, excluding properties referred to in section 41 427A.1, subsection 8, shall be assessed at a percentage 42 of its actual value, as determined in this paragraph 43 “b” . For valuations established for the assessment 44 year beginning January 1, 2013, the percentage of 45 actual value as equalized by the director of revenue 46 as provided in section 441.49 at which commercial 47 property shall be assessed shall be ninety-five 48 percent. For valuations established for the assessment 49 year beginning January 1, 2014, the percentage of 50 -5- SF295.1627 (3) 85 md/sc 5/ 11
actual value as equalized by the director of revenue 1 as provided in section 441.49 at which commercial 2 property shall be assessed shall be ninety percent. 3 For valuations established for the assessment year 4 beginning January 1, 2015, the percentage of actual 5 value as equalized by the director of revenue as 6 provided in section 441.49 at which commercial property 7 shall be assessed shall be eighty-five percent. 8 For valuations established for the assessment year 9 beginning January 1, 2016, the percentage of actual 10 value as equalized by the director of revenue as 11 provided in section 441.49 at which commercial property 12 shall be assessed shall be eighty percent. 13 c. For valuations established on or after January 14 1, 2013, but before January 1, 2017, industrial 15 property, excluding properties referred to in section 16 427A.1, subsection 8, shall be assessed at a percentage 17 of its actual value, as determined in this paragraph 18 “c” . For valuations established for the assessment 19 year beginning January 1, 2013, the percentage of 20 actual value as equalized by the director of revenue 21 as provided in section 441.49 at which industrial 22 property shall be assessed shall be ninety-five 23 percent. For valuations established for the assessment 24 year beginning January 1, 2014, the percentage of 25 actual value as equalized by the director of revenue 26 as provided in section 441.49 at which industrial 27 property shall be assessed shall be ninety percent. 28 For valuations established for the assessment year 29 beginning January 1, 2015, the percentage of actual 30 value as equalized by the director of revenue as 31 provided in section 441.49 at which industrial property 32 shall be assessed shall be eighty-five percent. 33 For valuations established for the assessment year 34 beginning January 1, 2016, the percentage of actual 35 value as equalized by the director of revenue as 36 provided in section 441.49 at which industrial property 37 shall be assessed shall be eighty percent. 38 Sec. 6. NEW SECTION . 441.21A Commercial and 39 industrial property tax replacement —— replacement 40 claims. 41 1. a. For each fiscal year beginning on or after 42 July 1, 2014, there is appropriated from the general 43 fund of the state to the department of revenue an 44 amount necessary for the payment of all commercial 45 and industrial property tax replacement claims under 46 this section for the fiscal year. However, for a 47 fiscal year beginning on or after July 1, 2018, the 48 total amount of moneys appropriated from the general 49 fund of the state to the department of revenue for 50 -6- SF295.1627 (3) 85 md/sc 6/ 11
the payment of commercial and industrial property tax 1 replacement claims in that fiscal year shall not exceed 2 the total amount of money that was necessary to pay 3 all commercial and industrial property tax replacement 4 claims for the fiscal year beginning July 1, 2017. 5 b. Moneys appropriated by the general assembly to 6 the department under this subsection for the payment 7 of commercial and industrial property tax replacement 8 claims are not subject to a uniform reduction in 9 appropriations in accordance with section 8.31. 10 2. Beginning with the fiscal year beginning 11 July 1, 2014, each county treasurer shall be paid 12 by the department of revenue an amount equal to the 13 amount of the commercial and industrial property tax 14 replacement claims in the county, as calculated in 15 subsection 4. For fiscal years beginning on or after 16 July 1, 2018, if an amount appropriated for a fiscal 17 year is insufficient to pay all replacement claims, 18 the director of revenue shall prorate the payment of 19 replacement claims to the county treasurers and shall 20 notify the county auditors of the pro rata percentage 21 on or before September 30. 22 3. On or before July 1 of each fiscal year 23 beginning on or after July 1, 2014, the assessor shall 24 report to the county auditor the total actual value of 25 all commercial property and industrial property in the 26 county for the assessment year used to calculate the 27 taxes due and payable in that fiscal year. 28 4. On or before a date established by rule of the 29 department of revenue of each fiscal year beginning on 30 or after July 1, 2014, the county auditor shall prepare 31 a statement, based upon the report received pursuant 32 to subsection 3, listing for each taxing district in 33 the county: 34 a. The difference between the assessed valuation 35 of all commercial property and industrial property for 36 the assessment year used to calculate taxes which are 37 due and payable in the applicable fiscal year and the 38 actual value of all commercial property and industrial 39 property for the same assessment year. If the 40 difference between the assessed value of all commercial 41 property and industrial property and the actual 42 valuation of all commercial property and industrial 43 property is zero, there is no tax replacement for that 44 taxing district for the fiscal year. 45 b. The tax levy rate per one thousand dollars of 46 assessed value for each taxing district for that fiscal 47 year. 48 c. The commercial and industrial property tax 49 replacement claim for each taxing district. The 50 -7- SF295.1627 (3) 85 md/sc 7/ 11
replacement claim is equal to the amount determined 1 pursuant to paragraph “a” , multiplied by the tax rate 2 specified in paragraph “b” , and then divided by one 3 thousand dollars. 4 5. For purposes of computing replacement amounts 5 under this section, that portion of an urban renewal 6 area defined as the sum of the assessed valuations 7 defined in section 403.19, subsections 1 and 2, shall 8 be considered a taxing district. 9 6. a. The county auditor shall certify and forward 10 one copy of the statement to the department of revenue 11 not later than a date of each year established by the 12 department of revenue by rule. 13 b. The replacement claims shall be paid to each 14 county treasurer in equal installments in September 15 and March of each year. The county treasurer shall 16 apportion the replacement claim payments among the 17 eligible taxing districts in the county. 18 c. If the taxing district is an urban renewal 19 area, the amount of the replacement claim shall be 20 apportioned and credited to those portions of the 21 assessed value defined in section 403.19, subsections 22 1 and 2, as follows: 23 (1) To that portion defined in section 403.19, 24 subsection 1, an amount of the replacement claim that 25 is proportionate to the amount of actual value of the 26 commercial and industrial property in the urban renewal 27 area as determined in section 403.19, subsection 1, 28 that was subtracted pursuant to section 403.20, as 29 it bears to the total amount of actual value of the 30 commercial and industrial property in the urban renewal 31 area that was subtracted pursuant to section 403.20 for 32 the assessment year for property taxes due and payable 33 in the fiscal year for which the replacement claim is 34 computed. 35 (2) To that portion defined in section 403.19, 36 subsection 2, the remaining amount, if any. 37 d. Notwithstanding the allocation provisions of 38 paragraph “c” , the amount of the tax replacement amount 39 that shall be allocated to that portion of the assessed 40 value defined in section 403.19, subsection 2, shall 41 not exceed the amount equal to the amount certified to 42 the county auditor under section 403.19 for the fiscal 43 year in which the claim is paid, after deduction of 44 the amount of other revenues committed for payment 45 on that amount for the fiscal year. The amount not 46 allocated to that portion of the assessed value defined 47 in section 403.19, subsection 2, as a result of the 48 operation of this paragraph, shall be allocated to that 49 portion of assessed value defined in section 403.19, 50 -8- SF295.1627 (3) 85 md/sc 8/ 11
subsection 1. 1 e. The amount of the replacement claim amount 2 credited to the portion of the assessed value defined 3 in section 403.19, subsection 1, shall be allocated 4 to and when received be paid into the fund for the 5 respective taxing district as taxes by or for the 6 taxing district into which all other property taxes 7 are paid. The amount of the replacement claim amount 8 credited to the portion of the assessed value defined 9 in section 403.19, subsection 2, shall be allocated to 10 and when collected be paid into the special fund of the 11 municipality under section 403.19, subsection 2. 12 Sec. 7. SAVINGS PROVISION. This division of this 13 Act, pursuant to section 4.13, does not affect the 14 operation of, or prohibit the application of, prior 15 provisions of section 441.21, or rules adopted under 16 chapter 17A to administer prior provisions of section 17 441.21, for assessment years beginning before January 18 1, 2013, and for duties, powers, protests, appeals, 19 proceedings, actions, or remedies attributable to an 20 assessment year beginning before January 1, 2013. 21 Sec. 8. EFFECTIVE UPON ENACTMENT. This division of 22 this Act, being deemed of immediate importance, takes 23 effect upon enactment. 24 Sec. 9. RETROACTIVE APPLICABILITY. This division 25 of this Act applies retroactively to January 1, 2013, 26 for assessment years beginning on or after that date. 27 DIVISION II 28 SCHOOL DISTRICT FUNDING 29 Sec. 10. Section 257.1, subsection 2, paragraph b, 30 Code 2013, is amended by striking the paragraph and 31 inserting in lieu thereof the following: 32 b. (1) The regular program foundation base per 33 pupil is the following: 34 (a) For the budget year commencing July 1, 35 2012, and the budget year commencing July 1, 2013, 36 the regular program foundation base per pupil is 37 eighty-seven and five-tenths percent of the regular 38 program state cost per pupil. 39 (b) For the budget year commencing July 1, 2014, 40 the regular program foundation base per pupil is 41 eighty-nine and three hundred seventy-five thousandths 42 percent of the regular program state cost per pupil. 43 (c) For the budget year commencing July 1, 2015, 44 the regular program foundation base per pupil is 45 ninety-one and twenty-five hundredths percent of the 46 regular program state cost per pupil. 47 (d) For the budget year commencing July 1, 2016, 48 the regular program foundation base per pupil is 49 ninety-three and one hundred twenty-five thousandths 50 -9- SF295.1627 (3) 85 md/sc 9/ 11
percent of the regular program state cost per pupil. 1 (e) For the budget year commencing July 1, 2017, 2 and succeeding budget years, the regular program 3 foundation base per pupil is ninety-five percent of the 4 regular program state cost per pupil. 5 (2) For each budget year, the special education 6 support services foundation base is seventy-nine 7 percent of the special education support services state 8 cost per pupil. The combined foundation base is the 9 sum of the regular program foundation base, the special 10 education support services foundation base, the total 11 teacher salary supplement district cost, the total 12 professional development supplement district cost, the 13 total early intervention supplement district cost, the 14 total area education agency teacher salary supplement 15 district cost, and the total area education agency 16 professional development supplement district cost. 17 DIVISION III 18 HOMESTEAD CREDIT ADJUSTMENT 19 Sec. 11. Section 425.1, subsection 2, Code 2013, is 20 amended to read as follows: 21 2. a. The homestead credit fund shall be 22 apportioned each year so as to give a credit against 23 the tax on each eligible homestead in the state in 24 an amount equal to the actual levy on the first four 25 thousand eight hundred fifty dollars , as adjusted 26 pursuant to paragraph “b” , of actual value for each 27 homestead. 28 b. The amount of actual value specified in 29 paragraph “a” shall be adjusted annually as provided in 30 this paragraph. For each fiscal year beginning on or 31 after July 1, 2013, the amount of actual value used to 32 calculate the homestead credit shall be the amount of 33 actual value used to calculate the homestead credit in 34 the immediately preceding fiscal year multiplied by the 35 annual homestead credit factor and then rounded to the 36 nearest multiple of ten dollars. 37 c. For the purposes of this subsection, “annual 38 homestead credit factor” means the sum of one hundred 39 percent plus the annual percentage change, but not less 40 than zero, in the consumer price index for all urban 41 consumers published by the United States department of 42 labor, bureau of labor statistics, calculated for the 43 calendar year ending six months prior to the beginning 44 of the fiscal year for which the homestead credit is 45 being provided. 46 Sec. 12. APPLICABILITY. This division of this Act 47 applies to property taxes due and payable in fiscal 48 years beginning on or after July 1, 2013. > 49 2. Title page, by striking lines 1 through 4 50 -10- SF295.1627 (3) 85 md/sc 10/ 11
and inserting < An Act relating to state and local 1 finances by establishing and modifying property 2 assessment limitations, providing for commercial 3 and industrial property tax replacement payments, 4 increasing the regular program foundation base 5 percentage, providing for an adjustment to the amount 6 of value used to calculate the homestead credit, 7 making appropriations, and including effective date, 8 retroactive applicability, and other applicability 9 provisions. > 10 ______________________________ RANDY FEENSTRA ______________________________ ______________________________ ______________________________ -11- SF295.1627 (3) 85 md/sc 11/ 11