House File 437
HOUSE FILE
BY SHOULTZ
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the property tax assessment limitation
2 provision tying increases in assessments for agricultural and
3 residential property and including a retroactive applicability
4 date provision.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 2602HH 80
7 sc/sh/8
PAG LIN
1 1 Section 1. Section 441.21, subsection 4, Code 2003, is
1 2 amended to read as follows:
1 3 4. For valuations established as of January 1, 1979, the
1 4 percentage of actual value at which agricultural and
1 5 residential property shall be assessed shall be the quotient
1 6 of the dividend and divisor as defined in this section. The
1 7 dividend for each class of property shall be the dividend as
1 8 determined for each class of property for valuations
1 9 established as of January 1, 1978, adjusted by the product
1 10 obtained by multiplying the percentage determined for that
1 11 year by the amount of any additions or deletions to actual
1 12 value, excluding those resulting from the revaluation of
1 13 existing properties, as reported by the assessors on the
1 14 abstracts of assessment for 1978, plus six percent of the
1 15 amount so determined. However, if the difference between the
1 16 dividend so determined for either class of property and the
1 17 dividend for that class of property for valuations established
1 18 as of January 1, 1978, adjusted by the product obtained by
1 19 multiplying the percentage determined for that year by the
1 20 amount of any additions or deletions to actual value,
1 21 excluding those resulting from the revaluation of existing
1 22 properties, as reported by the assessors on the abstracts of
1 23 assessment for 1978, is less than six percent, the 1979
1 24 dividend for the other class of property shall be the dividend
1 25 as determined for that class of property for valuations
1 26 established as of January 1, 1978, adjusted by the product
1 27 obtained by multiplying the percentage determined for that
1 28 year by the amount of any additions or deletions to actual
1 29 value, excluding those resulting from the revaluation of
1 30 existing properties, as reported by the assessors on the
1 31 abstracts of assessment for 1978, plus a percentage of the
1 32 amount so determined which is equal to the percentage by which
1 33 the dividend as determined for the other class of property for
1 34 valuations established as of January 1, 1978, adjusted by the
1 35 product obtained by multiplying the percentage determined for
2 1 that year by the amount of any additions or deletions to
2 2 actual value, excluding those resulting from the revaluation
2 3 of existing properties, as reported by the assessors on the
2 4 abstracts of assessment for 1978, is increased in arriving at
2 5 the 1979 dividend for the other class of property. The
2 6 divisor for each class of property shall be the total actual
2 7 value of all such property in the state in the preceding year,
2 8 as reported by the assessors on the abstracts of assessment
2 9 submitted for 1978, plus the amount of value added to said
2 10 total actual value by the revaluation of existing properties
2 11 in 1979 as equalized by the director of revenue pursuant to
2 12 section 441.49. The director shall utilize information
2 13 reported on abstracts of assessment submitted pursuant to
2 14 section 441.45 in determining such percentage. For valuations
2 15 established as of January 1, 1980, and each year thereafter,
2 16 the percentage of actual value as equalized by the director of
2 17 revenue and finance as provided in section 441.49 at which
2 18 agricultural and residential property shall be assessed shall
2 19 be calculated in accordance with the methods provided herein
2 20 including the limitation of increases in agricultural and
2 21 residential assessed values to the percentage increase of the
2 22 other class of property if the other class increases less than
2 23 the allowable limit adjusted to include the applicable and
2 24 current values as equalized by the director of revenue and
2 25 finance in this subsection, except that any references to six
2 26 percent in this subsection shall be four percent.
2 27 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
2 28 retroactively to January 1, 2003, for assessment years
2 29 beginning on or after that date.
2 30 EXPLANATION
2 31 This bill eliminates the tie between agricultural and
2 32 residential property assessments which limits the increase in
2 33 the percentage of assessed value for property tax purposes for
2 34 one class of property to the increase in the other.
2 35 The bill applies retroactively to assessment years
3 1 beginning on or after January 1, 2003.
3 2 LSB 2602HH 80
3 3 sc/sh/8