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 providedherein 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 financein 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