House Amendment to Senate File 295 S-3166 Amend Senate File 295, as passed by the Senate, as 1 follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < DIVISION I 5 PROPERTY ASSESSMENT LIMITATION AND REPLACEMENT 6 Section 1. Section 257.3, subsection 1, Code 2013, 7 is amended by adding the following new paragraph: 8 NEW PARAGRAPH . d. The amount paid to each school 9 district for the commercial and industrial property 10 tax replacement claim under section 441.21A shall be 11 regarded as property tax. The portion of the payment 12 which is foundation property tax shall be determined by 13 applying the foundation property tax rate to the amount 14 computed under section 441.21A, subsection 4, paragraph 15 “a” , and such amount shall be prorated pursuant to 16 section 441.21A, subsection 2, if applicable. 17 Sec. 2. Section 331.512, Code 2013, is amended by 18 adding the following new subsection: 19 NEW SUBSECTION . 13A. Carry out duties relating 20 to the calculation and payment of commercial and 21 industrial property tax replacement claims under 22 section 441.21A. 23 Sec. 3. Section 331.559, Code 2013, is amended by 24 adding the following new subsection: 25 NEW SUBSECTION . 25A. Carry out duties relating 26 to the calculation and payment of commercial and 27 industrial property tax replacement claims under 28 section 441.21A. 29 Sec. 4. Section 441.21, subsection 4, Code 2013, is 30 amended to read as follows: 31 4. For valuations established as of January 32 1, 1979, the percentage of actual value at which 33 agricultural and residential property shall be assessed 34 shall be the quotient of the dividend and divisor as 35 defined in this section . The dividend for each class 36 of property shall be the dividend as determined for 37 each class of property for valuations established as 38 of January 1, 1978, adjusted by the product obtained 39 by multiplying the percentage determined for that year 40 by the amount of any additions or deletions to actual 41 value, excluding those resulting from the revaluation 42 of existing properties, as reported by the assessors 43 on the abstracts of assessment for 1978, plus six 44 percent of the amount so determined. However, if the 45 difference between the dividend so determined for 46 either class of property and the dividend for that 47 class of property for valuations established as of 48 January 1, 1978, adjusted by the product obtained by 49 multiplying the percentage determined for that year 50 -1- SF295.1764.H (3) 85 md 1/ 42 #1.

by the amount of any additions or deletions to actual 1 value, excluding those resulting from the revaluation 2 of existing properties, as reported by the assessors 3 on the abstracts of assessment for 1978, is less than 4 six percent, the 1979 dividend for the other class of 5 property shall be the dividend as determined for that 6 class of property for valuations established as of 7 January 1, 1978, adjusted by the product obtained by 8 multiplying the percentage determined for that year 9 by the amount of any additions or deletions to actual 10 value, excluding those resulting from the revaluation 11 of existing properties, as reported by the assessors on 12 the abstracts of assessment for 1978, plus a percentage 13 of the amount so determined which is equal to the 14 percentage by which the dividend as determined for the 15 other class of property for valuations established as 16 of January 1, 1978, adjusted by the product obtained 17 by multiplying the percentage determined for that year 18 by the amount of any additions or deletions to actual 19 value, excluding those resulting from the revaluation 20 of existing properties, as reported by the assessors 21 on the abstracts of assessment for 1978, is increased 22 in arriving at the 1979 dividend for the other class 23 of property. The divisor for each class of property 24 shall be the total actual value of all such property 25 in the state in the preceding year, as reported by the 26 assessors on the abstracts of assessment submitted 27 for 1978, plus the amount of value added to said 28 total actual value by the revaluation of existing 29 properties in 1979 as equalized by the director of 30 revenue pursuant to section 441.49 . The director shall 31 utilize information reported on abstracts of assessment 32 submitted pursuant to section 441.45 in determining 33 such percentage. For valuations established as of 34 January 1, 1980, and each assessment year thereafter 35 beginning before January 1, 2013 , the percentage of 36 actual value as equalized by the director of revenue 37 as provided in section 441.49 at which agricultural 38 and residential property shall be assessed shall be 39 calculated in accordance with the methods provided 40 herein including the limitation of increases in 41 agricultural and residential assessed values to the 42 percentage increase of the other class of property if 43 the other class increases less than the allowable limit 44 adjusted to include the applicable and current values 45 as equalized by the director of revenue, except that 46 any references to six percent in this subsection shall 47 be four percent. For valuations established as of 48 January 1, 2013, and each assessment year thereafter, 49 the percentage of actual value as equalized by the 50 -2- SF295.1764.H (3) 85 md 2/ 42

director of revenue as provided in section 441.49 at 1 which agricultural and residential property shall be 2 assessed shall be calculated in accordance with the 3 methods provided in this subsection, except that any 4 references to six percent in this subsection shall 5 be two percent, and including, for assessment years 6 beginning on or after January 1, 2013, but before 7 January 1, 2017, the limitation of increases in 8 agricultural and residential assessed values to the 9 percentage increase of the other class of property if 10 the other class increases less than the allowable limit 11 adjusted to include the applicable and current values 12 as equalized by the director of revenue, and including, 13 for assessment years beginning on or after January 1, 14 2017, the limitation in subsection 5A. 15 Sec. 5. Section 441.21, subsection 5, Code 2013, is 16 amended to read as follows: 17 5. a. For valuations established as of January 18 1, 1979, commercial property and industrial property, 19 excluding properties referred to in section 427A.1, 20 subsection 8 , shall be assessed as a percentage of 21 the actual value of each class of property. The 22 percentage shall be determined for each class of 23 property by the director of revenue for the state in 24 accordance with the provisions of this section . For 25 valuations established as of January 1, 1979, the 26 percentage shall be the quotient of the dividend and 27 divisor as defined in this section . The dividend 28 for each class of property shall be the total actual 29 valuation for each class of property established for 30 1978, plus six percent of the amount so determined. 31 The divisor for each class of property shall be the 32 valuation for each class of property established for 33 1978, as reported by the assessors on the abstracts of 34 assessment for 1978, plus the amount of value added to 35 the total actual value by the revaluation of existing 36 properties in 1979 as equalized by the director of 37 revenue pursuant to section 441.49 . For valuations 38 established as of January 1, 1979, property valued by 39 the department of revenue pursuant to chapters 428 , 40 433 , 437 , and 438 shall be considered as one class 41 of property and shall be assessed as a percentage of 42 its actual value. The percentage shall be determined 43 by the director of revenue in accordance with the 44 provisions of this section . For valuations established 45 as of January 1, 1979, the percentage shall be the 46 quotient of the dividend and divisor as defined in 47 this section . The dividend shall be the total actual 48 valuation established for 1978 by the department of 49 revenue, plus ten percent of the amount so determined. 50 -3- SF295.1764.H (3) 85 md 3/ 42

The divisor for property valued by the department of 1 revenue pursuant to chapters 428 , 433 , 437 , and 438 2 shall be the valuation established for 1978, plus 3 the amount of value added to the total actual value 4 by the revaluation of the property by the department 5 of revenue as of January 1, 1979. For valuations 6 established as of January 1, 1980, commercial property 7 and industrial property, excluding properties referred 8 to in section 427A.1, subsection 8 , shall be assessed 9 at a percentage of the actual value of each class of 10 property. The percentage shall be determined for 11 each class of property by the director of revenue for 12 the state in accordance with the provisions of this 13 section . For valuations established as of January 14 1, 1980, the percentage shall be the quotient of 15 the dividend and divisor as defined in this section . 16 The dividend for each class of property shall be the 17 dividend as determined for each class of property for 18 valuations established as of January 1, 1979, adjusted 19 by the product obtained by multiplying the percentage 20 determined for that year by the amount of any 21 additions or deletions to actual value, excluding those 22 resulting from the revaluation of existing properties, 23 as reported by the assessors on the abstracts of 24 assessment for 1979, plus four percent of the amount 25 so determined. The divisor for each class of property 26 shall be the total actual value of all such property in 27 1979, as equalized by the director of revenue pursuant 28 to section 441.49 , plus the amount of value added to 29 the total actual value by the revaluation of existing 30 properties in 1980. The director shall utilize 31 information reported on the abstracts of assessment 32 submitted pursuant to section 441.45 in determining 33 such percentage. For valuations established as of 34 January 1, 1980, property valued by the department 35 of revenue pursuant to chapters 428 , 433 , 437 , and 36 438 shall be assessed at a percentage of its actual 37 value. The percentage shall be determined by the 38 director of revenue in accordance with the provisions 39 of this section . For valuations established as of 40 January 1, 1980, the percentage shall be the quotient 41 of the dividend and divisor as defined in this section . 42 The dividend shall be the total actual valuation 43 established for 1979 by the department of revenue, 44 plus eight percent of the amount so determined. The 45 divisor for property valued by the department of 46 revenue pursuant to chapters 428 , 433 , 437 , and 438 47 shall be the valuation established for 1979, plus 48 the amount of value added to the total actual value 49 by the revaluation of the property by the department 50 -4- SF295.1764.H (3) 85 md 4/ 42

of revenue as of January 1, 1980. For valuations 1 established as of January 1, 1981, and each assessment 2 year thereafter beginning before January 1, 2013 , the 3 percentage of actual value as equalized by the director 4 of revenue as provided in section 441.49 at which 5 commercial property and industrial property, excluding 6 properties referred to in section 427A.1, subsection 7 8 , shall be assessed shall be calculated in accordance 8 with the methods provided herein, except that any 9 references to six percent in this subsection shall be 10 four percent. For valuations established as of January 11 1, 1981, and each year thereafter, the percentage of 12 actual value at which property valued by the department 13 of revenue pursuant to chapters 428 , 433 , 437 , and 438 14 shall be assessed shall be calculated in accordance 15 with the methods provided herein, except that any 16 references to ten percent in this subsection shall be 17 eight percent. Beginning with valuations established 18 as of January 1, 1979, and each assessment year 19 thereafter beginning before January 1, 2013 , property 20 valued by the department of revenue pursuant to chapter 21 434 shall also be assessed at a percentage of its 22 actual value which percentage shall be equal to the 23 percentage determined by the director of revenue for 24 commercial property, industrial property, or property 25 valued by the department of revenue pursuant to 26 chapters 428 , 433 , 437 , and 438 , whichever is lowest. 27 For valuations established on or after January 1, 2013, 28 but before January 1, 2017, commercial property and 29 industrial property shall be assessed as provided in 30 paragraphs “b” and “c” , as applicable. For valuations 31 established as of January 1, 2017, and each assessment 32 year thereafter, the percentage of actual value as 33 equalized by the director of revenue as provided in 34 section 441.49 at which commercial property, excluding 35 properties referred to in section 427A.1, subsection 36 8, shall be assessed shall be calculated in accordance 37 with the methods provided in this subsection, including 38 the limitation in subsection 5A, except that any 39 references to six percent in this subsection shall be 40 two percent. For valuations established on or after 41 January 1, 2017, industrial property shall be assessed 42 at a percentage of its actual value equal to the 43 percentage of actual value at which property assessed 44 as commercial property is assessed for the same 45 assessment year following application of the limitation 46 in subsection 5A, if applicable. For valuations 47 established on or after January 1, 2013, property 48 valued by the department of revenue pursuant to chapter 49 434 shall be assessed at a percentage of its actual 50 -5- SF295.1764.H (3) 85 md 5/ 42

value equal to the percentage of actual value at which 1 property assessed as commercial property is assessed 2 for the same assessment year following application of 3 the limitation in subsection 5A, if applicable. 4 b. For valuations established on or after January 5 1, 2013, but before January 1, 2017, commercial 6 property, excluding properties referred to in section 7 427A.1, subsection 8, shall be assessed at a percentage 8 of its actual value, as determined in this paragraph 9 “b” . For valuations established for the assessment 10 year beginning January 1, 2013, the percentage of 11 actual value as equalized by the director of revenue 12 as provided in section 441.49 at which commercial 13 property shall be assessed shall be ninety-five 14 percent. For valuations established for the assessment 15 year beginning January 1, 2014, the percentage of 16 actual value as equalized by the director of revenue 17 as provided in section 441.49 at which commercial 18 property shall be assessed shall be ninety percent. 19 For valuations established for the assessment year 20 beginning January 1, 2015, the percentage of actual 21 value as equalized by the director of revenue as 22 provided in section 441.49 at which commercial property 23 shall be assessed shall be eighty-five percent. 24 For valuations established for the assessment year 25 beginning January 1, 2016, the percentage of actual 26 value as equalized by the director of revenue as 27 provided in section 441.49 at which commercial property 28 shall be assessed shall be eighty percent. 29 c. For valuations established on or after January 30 1, 2013, but before January 1, 2017, industrial 31 property, excluding properties referred to in section 32 427A.1, subsection 8, shall be assessed at a percentage 33 of its actual value, as determined in this paragraph 34 “c” . For valuations established for the assessment 35 year beginning January 1, 2013, the percentage of 36 actual value as equalized by the director of revenue 37 as provided in section 441.49 at which industrial 38 property shall be assessed shall be ninety-five 39 percent. For valuations established for the assessment 40 year beginning January 1, 2014, the percentage of 41 actual value as equalized by the director of revenue 42 as provided in section 441.49 at which industrial 43 property shall be assessed shall be ninety percent. 44 For valuations established for the assessment year 45 beginning January 1, 2015, the percentage of actual 46 value as equalized by the director of revenue as 47 provided in section 441.49 at which industrial property 48 shall be assessed shall be eighty-five percent. 49 For valuations established for the assessment year 50 -6- SF295.1764.H (3) 85 md 6/ 42

beginning January 1, 2016, the percentage of actual 1 value as equalized by the director of revenue as 2 provided in section 441.49 at which industrial property 3 shall be assessed shall be eighty percent. 4 Sec. 6. Section 441.21, Code 2013, is amended by 5 adding the following new subsection: 6 NEW SUBSECTION . 5A. In addition to the limitation 7 of increases for agricultural and residential property 8 applicable under subsection 4 and the limitation 9 of increase for commercial property applicable 10 under subsection 5, for valuations established for 11 the assessment year beginning January 1, 2017, and 12 each assessment year thereafter, for residential, 13 agricultural, and commercial property, the assessed 14 value of each of these three classes of property shall 15 be limited to the percentage increase of that class of 16 property that is the lowest percentage increase under 17 the allowable limit adjusted to include the applicable 18 and current values as equalized by the director of 19 revenue. 20 Sec. 7. Section 441.21, subsections 9 and 10, Code 21 2013, 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 certify 24 to the county auditor of each county the percentages 25 of actual value at which residential property, 26 agricultural property, commercial property, industrial 27 property, property valued by the department of revenue 28 pursuant to chapter 434, and property valued by the 29 department of revenue pursuant to chapters 428 , 433 , 30 434 , 437 , and 438 in each assessing jurisdiction in the 31 county shall be assessed for taxation. The county 32 auditor shall proceed to determine the assessed values 33 of agricultural property, residential property, 34 commercial property, industrial property, property 35 valued by the department of revenue pursuant to chapter 36 434, and property valued by the department of revenue 37 pursuant to chapters 428 , 433 , 434 , 437 , and 438 by 38 applying such percentages to the current actual value 39 of such property, as reported to the county auditor by 40 the assessor, and the assessed values so determined 41 shall be the taxable values of such properties upon 42 which the levy shall be made. 43 10. The percentage of actual value computed by 44 the director for agricultural property, residential 45 property, commercial property, industrial property , 46 property valued by the department of revenue pursuant 47 to chapter 434, and property valued by the department 48 of revenue pursuant to chapters 428 , 433 , 434 , 437 , and 49 438 and used to determine assessed values of those 50 -7- SF295.1764.H (3) 85 md 7/ 42

classes of property does not constitute a rule as 1 defined in section 17A.2, subsection 11 . 2 Sec. 8. NEW SECTION . 441.21A Commercial and 3 industrial property tax replacement —— replacement 4 claims. 5 1. a. For each fiscal year beginning on or after 6 July 1, 2014, there is appropriated from the general 7 fund of the state to the department of revenue an 8 amount necessary for the payment of all commercial 9 and industrial property tax replacement claims under 10 this section for the fiscal year. However, for a 11 fiscal year beginning on or after July 1, 2018, the 12 total amount of moneys appropriated from the general 13 fund of the state to the department of revenue for 14 the payment of commercial and industrial property tax 15 replacement claims in that fiscal year shall not exceed 16 the total amount of money that was necessary to pay 17 all commercial and industrial property tax replacement 18 claims for the fiscal year beginning July 1, 2017. 19 b. Moneys appropriated by the general assembly to 20 the department under this subsection for the payment 21 of commercial and industrial property tax replacement 22 claims are not subject to a uniform reduction in 23 appropriations in accordance with section 8.31. 24 2. Beginning with the fiscal year beginning 25 July 1, 2014, each county treasurer shall be paid 26 by the department of revenue an amount equal to the 27 amount of the commercial and industrial property tax 28 replacement claims in the county, as calculated in 29 subsection 4. For fiscal years beginning on or after 30 July 1, 2018, if an amount appropriated for a fiscal 31 year is insufficient to pay all replacement claims, 32 the director of revenue shall prorate the payment of 33 replacement claims to the county treasurers and shall 34 notify the county auditors of the pro rata percentage 35 on or before September 30. 36 3. On or before July 1 of each fiscal year 37 beginning on or after July 1, 2014, the assessor shall 38 report to the county auditor the total actual value of 39 all commercial property and industrial property in the 40 county for the assessment year used to calculate the 41 taxes due and payable in that fiscal year. 42 4. On or before a date established by rule of the 43 department of revenue of each fiscal year beginning on 44 or after July 1, 2014, the county auditor shall prepare 45 a statement, based upon the report received pursuant 46 to subsection 3, listing for each taxing district in 47 the county: 48 a. The difference between the assessed valuation 49 of all commercial property and industrial property for 50 -8- SF295.1764.H (3) 85 md 8/ 42

the assessment year used to calculate taxes which are 1 due and payable in the applicable fiscal year and the 2 actual value of all commercial property and industrial 3 property for the same assessment year. If the 4 difference between the assessed value of all commercial 5 property and industrial property and the actual 6 valuation of all commercial property and industrial 7 property is zero, there is no tax replacement for that 8 taxing district for the fiscal year. 9 b. The tax levy rate per one thousand dollars of 10 assessed value for each taxing district for that fiscal 11 year. 12 c. The commercial and industrial property tax 13 replacement claim for each taxing district. The 14 replacement claim is equal to the amount determined 15 pursuant to paragraph “a” , multiplied by the tax rate 16 specified in paragraph “b” , and then divided by one 17 thousand dollars. 18 5. For purposes of computing replacement amounts 19 under this section, that portion of an urban renewal 20 area defined as the sum of the assessed valuations 21 defined in section 403.19, subsections 1 and 2, shall 22 be considered a taxing district. 23 6. a. The county auditor shall certify and forward 24 one copy of the statement to the department of revenue 25 not later than a date of each year established by the 26 department of revenue by rule. 27 b. The replacement claims shall be paid to each 28 county treasurer in equal installments in September 29 and March of each year. The county treasurer shall 30 apportion the replacement claim payments among the 31 eligible taxing districts in the county. 32 c. If the taxing district is an urban renewal 33 area, the amount of the replacement claim shall be 34 apportioned and credited to those portions of the 35 assessed value defined in section 403.19, subsections 36 1 and 2, as follows: 37 (1) To that portion defined in section 403.19, 38 subsection 1, an amount of the replacement claim that 39 is proportionate to the amount of actual value of the 40 commercial and industrial property in the urban renewal 41 area as determined in section 403.19, subsection 1, 42 that was subtracted pursuant to section 403.20, as 43 it bears to the total amount of actual value of the 44 commercial and industrial property in the urban renewal 45 area that was subtracted pursuant to section 403.20 for 46 the assessment year for property taxes due and payable 47 in the fiscal year for which the replacement claim is 48 computed. 49 (2) To that portion defined in section 403.19, 50 -9- SF295.1764.H (3) 85 md 9/ 42

subsection 2, the remaining amount, if any. 1 d. Notwithstanding the allocation provisions of 2 paragraph “c” , the amount of the tax replacement amount 3 that shall be allocated to that portion of the assessed 4 value defined in section 403.19, subsection 2, shall 5 not exceed the amount equal to the amount certified to 6 the county auditor under section 403.19 for the fiscal 7 year in which the claim is paid, after deduction of 8 the amount of other revenues committed for payment 9 on that amount for the fiscal year. The amount not 10 allocated to that portion of the assessed value defined 11 in section 403.19, subsection 2, as a result of the 12 operation of this paragraph, shall be allocated to that 13 portion of assessed value defined in section 403.19, 14 subsection 1. 15 e. The amount of the replacement claim amount 16 credited to the portion of the assessed value defined 17 in section 403.19, subsection 1, shall be allocated 18 to and when received be paid into the fund for the 19 respective taxing district as taxes by or for the 20 taxing district into which all other property taxes 21 are paid. The amount of the replacement claim amount 22 credited to the portion of the assessed value defined 23 in section 403.19, subsection 2, shall be allocated to 24 and when collected be paid into the special fund of the 25 municipality under section 403.19, subsection 2. 26 Sec. 9. SAVINGS PROVISION. This division of this 27 Act, pursuant to section 4.13, does not affect the 28 operation of, or prohibit the application of, prior 29 provisions of section 441.21, or rules adopted under 30 chapter 17A to administer prior provisions of section 31 441.21, for assessment years beginning before January 32 1, 2013, and for duties, powers, protests, appeals, 33 proceedings, actions, or remedies attributable to an 34 assessment year beginning before January 1, 2013. 35 Sec. 10. EFFECTIVE UPON ENACTMENT. This division 36 of this Act, being deemed of immediate importance, 37 takes effect upon enactment. 38 Sec. 11. RETROACTIVE APPLICABILITY. This division 39 of this Act applies retroactively to January 1, 2013, 40 for assessment years beginning on or after that date. 41 DIVISION II 42 SCHOOL DISTRICT FUNDING 43 Sec. 12. Section 257.1, subsection 2, paragraph b, 44 Code 2013, is amended by striking the paragraph and 45 inserting in lieu thereof the following: 46 b. (1) The regular program foundation base per 47 pupil is the following: 48 (a) For the budget year commencing July 1, 49 2012, and the budget year commencing July 1, 2013, 50 -10- SF295.1764.H (3) 85 md 10/ 42

the regular program foundation base per pupil is 1 eighty-seven and five-tenths percent of the regular 2 program state cost per pupil. 3 (b) For the budget year commencing July 1, 2014, 4 the regular program foundation base per pupil is 5 eighty-nine and three hundred seventy-five thousandths 6 percent of the regular program state cost per pupil. 7 (c) For the budget year commencing July 1, 2015, 8 the regular program foundation base per pupil is 9 ninety-one and twenty-five hundredths percent of the 10 regular program state cost per pupil. 11 (d) For the budget year commencing July 1, 2016, 12 the regular program foundation base per pupil is 13 ninety-three and one hundred twenty-five thousandths 14 percent of the regular program state cost per pupil. 15 (e) For the budget year commencing July 1, 2017, 16 and succeeding budget years, the regular program 17 foundation base per pupil is ninety-five percent of the 18 regular program state cost per pupil. 19 (2) For each budget year, the special education 20 support services foundation base is seventy-nine 21 percent of the special education support services state 22 cost per pupil. The combined foundation base is the 23 sum of the regular program foundation base, the special 24 education support services foundation base, the total 25 teacher salary supplement district cost, the total 26 professional development supplement district cost, the 27 total early intervention supplement district cost, the 28 total area education agency teacher salary supplement 29 district cost, and the total area education agency 30 professional development supplement district cost. 31 DIVISION III 32 MULTIRESIDENTIAL PROPERTY CLASSIFICATION 33 Sec. 13. Section 404.2, subsection 2, paragraph f, 34 Code 2013, is amended to read as follows: 35 f. A statement specifying whether the 36 revitalization is applicable to none, some, or all of 37 the property assessed as residential, multiresidential, 38 agricultural, commercial , or industrial property 39 within the designated area or a combination thereof and 40 whether the revitalization is for rehabilitation and 41 additions to existing buildings or new construction or 42 both. If revitalization is made applicable only to 43 some property within an assessment classification, the 44 definition of that subset of eligible property must 45 be by uniform criteria which further some planning 46 objective identified in the plan. The city shall state 47 how long it is estimated that the area shall remain 48 a designated revitalization area which time shall 49 be longer than one year from the date of designation 50 -11- SF295.1764.H (3) 85 md 11/ 42

and shall state any plan by the city to issue revenue 1 bonds for revitalization projects within the area. For 2 a county, a revitalization area shall include only 3 property which will be used as industrial property, 4 commercial property, commercial property consisting of 5 three or more separate living quarters with at least 6 seventy-five percent of the space used for residential 7 purposes, multiresidential property, or residential 8 property. However, a county shall not provide a tax 9 exemption under this chapter to commercial property, 10 commercial property consisting of three or more 11 separate living quarters with at least seventy-five 12 percent of the space used for residential purposes 13 multiresidential property , or residential property 14 which is located within the limits of a city. 15 Sec. 14. Section 404.3, subsection 4, Code 2013, is 16 amended to read as follows: 17 4. All qualified real estate assessed as 18 residential property or assessed as commercial 19 property, if the commercial property consists of 20 three or more separate living quarters with at least 21 seventy-five percent of the space used for residential 22 purposes, or assessed as multiresidential property is 23 eligible to receive a one hundred percent exemption 24 from taxation on the actual value added by the 25 improvements. The exemption is for a period of ten 26 years. 27 Sec. 15. Section 441.21, subsection 8, paragraph b, 28 Code 2013, is amended to read as follows: 29 b. Notwithstanding paragraph “a” , any construction 30 or installation of a solar energy system on property 31 classified as agricultural, residential, commercial, 32 multiresidential, or industrial property shall not 33 increase the actual, assessed , and taxable values of 34 the property for five full assessment years. 35 Sec. 16. Section 441.21, subsections 9 and 10, Code 36 2013, are amended to read as follows: 37 9. Not later than November 1, 1979, and November 38 1 of each subsequent year, the director shall 39 certify to the county auditor of each county the 40 percentages of actual value at which residential 41 property, agricultural property, commercial property, 42 industrial property, multiresidential property, and 43 property valued by the department of revenue pursuant 44 to chapters 428 , 433 , 434 , 437 , and 438 in each 45 assessing jurisdiction in the county shall be assessed 46 for taxation. The county auditor shall proceed 47 to determine the assessed values of agricultural 48 property, residential property, commercial property, 49 industrial property, multiresidential property, and 50 -12- SF295.1764.H (3) 85 md 12/ 42

property valued by the department of revenue pursuant 1 to chapters 428 , 433 , 434 , 437 , and 438 by applying 2 such percentages to the current actual value of such 3 property, as reported to the county auditor by the 4 assessor, and the assessed values so determined shall 5 be the taxable values of such properties upon which the 6 levy shall be made. 7 10. The percentage of actual value computed by 8 the director for agricultural property, residential 9 property, commercial property, industrial property , 10 multiresidential property, and property valued by the 11 department of revenue pursuant to chapters 428 , 433 , 12 434 , 437 , and 438 and used to determine assessed values 13 of those classes of property does not constitute a rule 14 as defined in section 17A.2, subsection 11 . 15 Sec. 17. Section 441.21, Code 2013, is amended by 16 adding the following new subsection: 17 NEW SUBSECTION . 13. a. Beginning with valuations 18 established on or after January 1, 2014, mobile home 19 parks, manufactured home communities, land-leased 20 communities, assisted living facilities, and that 21 portion of a building that is used for human habitation 22 and a proportionate share of the land upon which 23 the building is situated, even if the use for human 24 habitation is not the primary use of the building, and 25 regardless of the number of dwelling units located 26 in the building, and not otherwise classified as 27 residential property, shall be valued as a separate 28 class of property known as multiresidential property 29 and, excluding properties referred to in section 30 427A.1, subsection 8, shall be assessed at a percentage 31 of its actual value, as determined in this subsection. 32 For valuations established for the assessment year 33 beginning January 1, 2014, the percentage of actual 34 value as equalized by the director of revenue as 35 provided in section 441.49 at which multiresidential 36 property shall be assessed shall be ninety percent. 37 For valuations established for the assessment year 38 beginning January 1, 2015, the percentage of actual 39 value as equalized by the director of revenue as 40 provided in section 441.49 at which multiresidential 41 property shall be assessed shall be eighty percent. 42 For valuations established for the assessment year 43 beginning January 1, 2016, the percentage of actual 44 value as equalized by the director of revenue as 45 provided in section 441.49 at which multiresidential 46 property shall be assessed shall be seventy percent. 47 For valuations established for the assessment year 48 beginning January 1, 2017, the percentage of actual 49 value as equalized by the director of revenue as 50 -13- SF295.1764.H (3) 85 md 13/ 42

provided in section 441.49 at which multiresidential 1 property shall be assessed shall be sixty percent. 2 For valuations established for the assessment year 3 beginning January 1, 2018, and each assessment year 4 thereafter, the percentage of actual value as equalized 5 by the director of revenue as provided in section 6 441.49 at which multiresidential property shall be 7 assessed shall be equal to the percentage of actual 8 value at which property assessed as residential 9 property is assessed under subsection 4 for the same 10 assessment year, after application of the limitations 11 on increases in residential property provided for in 12 this section. 13 b. Accordingly, the assessor may assign more than 14 one classification to a parcel of property that, in 15 part, satisfies the requirements of this subsection. 16 c. In no case, however, shall property that is 17 rented or leased to low-income individuals and families 18 as authorized by section 42 of the Internal Revenue 19 Code, and that is subject to assessment procedures 20 relating to section 42 property under section 441.21, 21 subsection 2, or a hotel, motel, inn, or other building 22 where rooms or dwelling units are usually rented for 23 less than one month be classified as multiresidential 24 property under this subsection. 25 d. As used in this subsection: 26 (1) “Assisted living facility” means property for 27 providing assisted living as defined in section 231C.2. 28 “Assisted living facility” also includes a health care 29 facility, as defined in section 135C.1, an elder group 30 home, as defined in section 231B.1, a child foster care 31 facility under chapter 237, or property used for a 32 hospice program as defined in section 135J.1. 33 (2) “Dwelling unit” means an apartment, group of 34 rooms, or single room which is occupied as separate 35 living quarters or, if vacant, is intended for 36 occupancy as separate living quarters, in which a 37 tenant can live and sleep separately from any other 38 persons in the building. 39 (3) “Land-leased community” means the same as 40 defined in sections 335.30A and 414.28A. 41 (4) “Manufactured home community” means the same as 42 a land-leased community. 43 (5) “Mobile home park” means the same as defined in 44 section 435.1. 45 Sec. 18. Section 558.46, subsection 5, Code 2013, 46 is amended to read as follows: 47 5. For the purposes of this section , “residential 48 property” includes commercial multiresidential property 49 as defined in section 441.21, subsection 13, consisting 50 -14- SF295.1764.H (3) 85 md 14/ 42