Senate File 41
SENATE FILE
BY MILLER
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to property taxation by requiring funding for
2 state mandates, modifying the regular program school
3 foundation base percentage, limiting certain school district
4 property tax levies, establishing an ending fund balance
5 limitation for counties, relating to county levies for mental
6 health, mental retardation, and developmental disabilities
7 services, excepting school district revenue from taxes
8 collected for tax increment financing districts, repealing
9 certain property tax credits, modifying certain property tax
10 credits to operate as exemptions and striking state
11 reimbursement for the credits, modifying certain property tax
12 exemptions, providing for an ad valorem tax on mobile homes
13 and manufactured homes, making changes to the method of
14 assessment of property, establishing an agricultural land
15 reserve, establishing limits on taxes collectible by class of
16 property and by taxpayer, and lowering the rate of interest
17 charged on delinquent taxes, and providing for other properly
18 related matters and including effective and applicability date
19 provisions.
20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
21 TLSB 1159XS 80
22 sc/pj/5
PAG LIN
1 1 Section 1. Section 25B.2, subsection 3, Code 2003, is
1 2 amended by striking the subsection.
1 3 Sec. 2. NEW SECTION. 25B.5A UNFUNDED STATE MANDATES ==
1 4 EFFECT.
1 5 If, on or after July 1, 2004, a state mandate is enacted by
1 6 the general assembly, or otherwise imposed, on a political
1 7 subdivision and the state mandate requires a political
1 8 subdivision to engage in any new activity, to provide a new
1 9 service, or to provide any service beyond that required by any
1 10 law enacted prior to July 1, 2004, and the state does not
1 11 appropriate moneys to fully fund the cost of the state mandate
1 12 as identified pursuant to section 25B.5, subsections 1 and 2,
1 13 the political subdivision is not required to perform the
1 14 activity or provide the new or increased service and the
1 15 political subdivision shall not be subject to any liabilities
1 16 imposed by the state or the imposition of any fines or
1 17 penalties for the failure to comply with the state mandate.
1 18 Sec. 3. Section 25B.7, subsections 2 and 3, Code 2003, are
1 19 amended by striking the subsections.
1 20 Sec. 4. Section 216.12, subsection 5, Code 2003, is
1 21 amended to read as follows:
1 22 5. The rental or leasing of a housing accommodation in a
1 23 building which contains housing accommodations for not more
1 24 than four families living independently of each other, if the
1 25 owner resides in one of the housing accommodations for which
1 26 the owner qualifies for the homestead tax credit exemption
1 27 under section 425.1.
1 28 Sec. 5. Section 257.1, subsection 2, unnumbered paragraph
1 29 2, Code 2003, is amended to read as follows:
1 30 For the budget year commencing July 1, 1999 2005, and for
1 31 each succeeding budget year the regular program foundation
1 32 base per pupil is eighty=seven and five=tenths ninety=eight
1 33 and four=tenths percent of the regular program state cost per
1 34 pupil. For the budget year commencing July 1, 1991, and for
1 35 each succeeding budget year the special education support
2 1 services foundation base is seventy=nine percent of the
2 2 special education support services state cost per pupil. The
2 3 combined foundation base is the sum of the regular program
2 4 foundation base and the special education support services
2 5 foundation base.
2 6 Sec. 6. NEW SECTION. 257A.1 PROPERTY TAX LIMITATION.
2 7 1. For property taxes due and payable in the fiscal year
2 8 beginning July 1, 2005, and all subsequent fiscal years,
2 9 property taxes levied by a school district against residential
2 10 property shall not exceed an amount equal to one=half of one
2 11 percent.
2 12 2. For property taxes due and payable in the fiscal year
2 13 beginning July 1, 2005, and all subsequent fiscal years,
2 14 property taxes levied by a school district against
2 15 agricultural property shall not exceed an amount equal to one=
2 16 half of one percent.
2 17 3. For property taxes due and payable in the fiscal year
2 18 beginning July 1, 2005, and all subsequent fiscal years,
2 19 property taxes levied by a school district against commercial
2 20 and industrial property shall not exceed an amount equal to
2 21 one percent.
2 22 4. This section applies to all school district property
2 23 tax levies, other than those authorized in sections 257.3 and
2 24 257.4.
2 25 Sec. 7. NEW SECTION. 257A.2 PROPERTY TAX LIMITATION ==
2 26 CONSUMER PRICE INDEX.
2 27 1. Notwithstanding the limitation in section 257A.1, in
2 28 any one fiscal year, the amount of property taxes to be levied
2 29 by a school district against any class of property for the
2 30 budget year cannot exceed the amount computed in this section.
2 31 This section applies to all school district property tax
2 32 levies, other than those authorized in sections 257.3 and
2 33 257.4.
2 34 2. The school district property tax limitation shall be
2 35 computed as follows:
3 1 a. Determine the amount of property taxes levied as a
3 2 percent of actual value in the current fiscal year.
3 3 b. Determine the sum of the amount of actual value of all
3 4 taxable property for the current fiscal year and the increase
3 5 in actual value of property due to new construction, additions
3 6 or improvements to existing structures, expiration of tax
3 7 abatement under chapter 404, and any increase in valuation due
3 8 to reclassification of property.
3 9 c. Multiply the percent calculated in paragraph "a" times
3 10 the amount in paragraph "b".
3 11 d. Multiply the product determined in paragraph "c" times
3 12 the sum of one plus the consumer price index.
3 13 3. For purposes of this section, "consumer price index"
3 14 means the percentage rate of change in the consumer price
3 15 index as tabulated by the United States department of labor,
3 16 bureau of labor statistics, for the twelve=month period ending
3 17 June 30 of the previous fiscal year.
3 18 Sec. 8. Section 331.401, subsection 1, paragraph g, Code
3 19 2003, is amended by striking the paragraph.
3 20 Sec. 9. NEW SECTION. 331.423A ENDING FUND BALANCE.
3 21 Effective for a fiscal year beginning on or after July 1,
3 22 2008, budgeted ending fund balances shall not exceed twenty=
3 23 five percent of actual expenditures in the previous fiscal
3 24 year for either the general fund or the rural services fund.
3 25 An ending fund balance does not include funds reserved or
3 26 designated for a specific purpose and specifically described
3 27 in the certified budget. For purposes of this section, the
3 28 general fund includes the general basic fund and the general
3 29 supplemental fund and the rural services fund includes the
3 30 rural services basic fund and the rural services supplemental
3 31 fund.
3 32 Sec. 10. Section 331.424A, subsection 1, Code 2003, is
3 33 amended to read as follows:
3 34 1. For the purposes of this chapter, unless the context
3 35 otherwise requires, "services:
4 1 a. "Ending balance target percentage" means a county's
4 2 fiscal year ending balance for the services fund calculated on
4 3 a modified accrual basis under generally accepted accounting
4 4 principles and expressed as a percentage of the gross
4 5 expenditure amount for that fiscal year.
4 6 b. "Gross expenditure amount" means a county's gross
4 7 expenditures from the services fund for a fiscal year, as
4 8 calculated on a modified accrual basis under generally
4 9 accepted accounting principles.
4 10 c. "Services fund" means the county mental health, mental
4 11 retardation, and developmental disabilities services fund
4 12 created in subsection 2.
4 13 PARAGRAPH DIVIDED. The county finance committee created in
4 14 section 333A.2 shall consult with the mental health and
4 15 developmental disabilities commission in adopting rules and
4 16 prescribing forms for administering the services fund.
4 17 Sec. 11. Section 331.424A, subsection 4, Code 2003, is
4 18 amended to read as follows:
4 19 4. a. For the fiscal year beginning July 1, 1996, and for
4 20 each subsequent fiscal year, the county shall certify a levy
4 21 for payment of services. For each fiscal year, county
4 22 revenues from taxes imposed by the county credited to the
4 23 services fund shall not exceed an amount equal to the amount
4 24 of base year expenditures for services as defined in section
4 25 331.438, less the amount of property tax relief to be received
4 26 pursuant to section 426B.2, in the fiscal year for which the
4 27 budget is certified. The county auditor and the board of
4 28 supervisors shall reduce the amount of the levy certified for
4 29 the services fund by the amount of property tax relief to be
4 30 received. A levy certified under this section is not subject
4 31 to the appeal provisions of section 331.426 or to any other
4 32 provision in law authorizing a county to exceed, increase, or
4 33 appeal a property tax levy limit.
4 34 b. The levy amount certified for the services fund under
4 35 this subsection shall not be less than the following
5 1 applicable percentage of the county's base year expenditures
5 2 for services as defined in section 331.438, less the amount of
5 3 property tax relief to be received pursuant to section 426B.2,
5 4 as follows:
5 5 (1) For the fiscal year beginning July 1, 2003, fifty
5 6 percent of the county's base year expenditures for services.
5 7 (2) For the fiscal year beginning July 1, 2004, sixty
5 8 percent of the county's base year expenditures for services.
5 9 (3) For the fiscal year beginning July 1, 2005, and
5 10 succeeding fiscal years, seventy percent of the county's base
5 11 year expenditures for services.
5 12 Sec. 12. Section 331.424A, Code 2003, is amended by adding
5 13 the following new subsection:
5 14 NEW SUBSECTION. 6. For purposes of determining the final
5 15 amount for the state payment to a county of allowed growth
5 16 funding in accordance with sections 331.438, subsection 2, and
5 17 331.439, subsection 3, and the per capita expenditure target
5 18 pool portion of allowed growth under section 426B.5,
5 19 subsection 1, the amounts determined for a county under those
5 20 sections shall be proportionately reduced by the amount the
5 21 county's services fund ending balance for the previous fiscal
5 22 year was in excess of the applicable ending balance target
5 23 percentage for that fiscal year as listed in paragraphs "a"
5 24 through "c". The total of county allowed growth funding
5 25 amounts reduced pursuant to this subsection shall be
5 26 redistributed among the eligible counties in accordance with
5 27 the formula for the per capita expenditure target pool portion
5 28 of allowed growth under section 426B.5, subsection 1. The
5 29 ending balance target percentages shall be as follows:
5 30 a. For services fund ending balances for the fiscal year
5 31 beginning July 1, 2002, the ending balance target percentage
5 32 shall be fifty percent.
5 33 b. For services fund ending balances for the fiscal year
5 34 beginning July 1, 2003, the ending balance target percentage
5 35 shall be thirty=five percent.
6 1 c. For services fund ending balances for the fiscal year
6 2 beginning July 1, 2004, and succeeding fiscal years, the
6 3 ending balance target percentage shall be twenty=five percent.
6 4 Sec. 13. Section 331.429, subsection 1, paragraphs a and
6 5 b, Code 2003, are amended to read as follows:
6 6 a. Transfers from the general fund not to exceed in any
6 7 year the dollar equivalent of a tax of sixteen and seven=
6 8 eighths cents per thousand dollars of assessed value on all
6 9 taxable property in the county multiplied by the ratio of
6 10 current taxes actually collected and apportioned for the
6 11 general basic levy to the total general basic levy for the
6 12 current year, and an amount equivalent to the moneys derived
6 13 by the general fund from military service tax credits under
6 14 chapter 426A, manufactured or mobile home taxes under section
6 15 435.22, and delinquent taxes for prior years collected and
6 16 apportioned to the general basic fund in the current year,
6 17 multiplied by the ratio of sixteen and seven=eighths cents to
6 18 three dollars and fifty cents.
6 19 b. Transfers from the rural services fund not to exceed in
6 20 any year the dollar equivalent of a tax of three dollars and
6 21 three=eighths cents per thousand dollars of assessed value on
6 22 all taxable property not located within the corporate limits
6 23 of a city in the county multiplied by the ratio of current
6 24 taxes actually collected and apportioned for the rural
6 25 services basic levy to the total rural services basic levy for
6 26 the current year and an amount equivalent to the moneys
6 27 derived by the rural services fund from military service tax
6 28 credits under chapter 426A, manufactured or mobile home taxes
6 29 under section 435.22, and delinquent taxes for prior years
6 30 collected and apportioned to the rural services basic fund in
6 31 the current year, multiplied by the ratio of three dollars and
6 32 three=eighths cents to three dollars and ninety=five cents.
6 33 Sec. 14. Section 331.512, subsection 3, Code 2003, is
6 34 amended to read as follows:
6 35 3. Carry out duties relating to the homestead tax credit
7 1 and agricultural land tax credit exemptions and the military
7 2 tax exemption as provided in chapters 425 and 426 426A.
7 3 Sec. 15. Section 331.512, subsection 4, Code 2003, is
7 4 amended by striking the subsection.
7 5 Sec. 16. Section 331.559, subsections 12, 13, and 14, Code
7 6 2003, are amended by striking the subsections.
7 7 Sec. 17. Section 335.30A, unnumbered paragraph 2, Code
7 8 2003, is amended to read as follows:
7 9 "Land=leased community" means any site, lot, field, or
7 10 tract of land under common ownership upon which ten or more
7 11 occupied manufactured homes are harbored, either free of
7 12 charge or for revenue purposes, and shall include any
7 13 building, structure, or enclosure used or intended for use as
7 14 part of the equipment of the land=leased community. The term
7 15 "land=leased community" shall not be construed to include
7 16 homes, buildings, or other structures temporarily maintained
7 17 by any individual, educational institution, or company on
7 18 their own premises and used exclusively to house their own
7 19 labor or students. A manufactured home located in a land=
7 20 leased community shall be taxed under section 435.22 as if the
7 21 manufactured home were located in a mobile home park.
7 22 Sec. 18. Section 403.19, subsection 2, Code 2003, is
7 23 amended to read as follows:
7 24 2. That portion of the taxes each year in excess of such
7 25 amount shall be allocated to and when collected be paid into a
7 26 special fund of the municipality to pay the principal of and
7 27 interest on loans, moneys advanced to, or indebtedness,
7 28 whether funded, refunded, assumed, or otherwise, including
7 29 bonds issued under the authority of section 403.9, subsection
7 30 1, incurred by the municipality to finance or refinance, in
7 31 whole or in part, an urban renewal project within the area,
7 32 and to provide assistance for low and moderate income family
7 33 housing as provided in section 403.22, except as otherwise
7 34 provided in subsection 7, and except that taxes for the
7 35 regular and voter=approved physical plant and equipment levy
8 1 of a school district imposed pursuant to section 298.2 and
8 2 taxes for the payment of bonds and interest of each taxing
8 3 district must be collected against all taxable property within
8 4 the taxing district without limitation by the provisions of
8 5 this subsection. However, all or a portion of the taxes for
8 6 the physical plant and equipment levy shall be paid by the
8 7 school district to the municipality if the auditor certifies
8 8 to the school district by July 1 the amount of such levy that
8 9 is necessary to pay the principal and interest on bonds issued
8 10 by the municipality to finance an urban renewal project, which
8 11 bonds were issued before July 1, 2001. Indebtedness incurred
8 12 to refund bonds issued prior to July 1, 2001, shall not be
8 13 included in the certification. Such school district shall pay
8 14 over the amount certified by November 1 and May 1 of the
8 15 fiscal year following certification to the school district.
8 16 Unless and until the total assessed valuation of the taxable
8 17 property in an urban renewal area exceeds the total assessed
8 18 value of the taxable property in such area as shown by the
8 19 last equalized assessment roll referred to in subsection 1,
8 20 all of the taxes levied and collected upon the taxable
8 21 property in the urban renewal area shall be paid into the
8 22 funds for the respective taxing districts as taxes by or for
8 23 the taxing districts in the same manner as all other property
8 24 taxes. When such loans, advances, indebtedness, and bonds, if
8 25 any, and interest thereon, have been paid, all moneys
8 26 thereafter received from taxes upon the taxable property in
8 27 such urban renewal area shall be paid into the funds for the
8 28 respective taxing districts in the same manner as taxes on all
8 29 other property.
8 30 Sec. 19. Section 403.19, subsection 7, Code 2003, is
8 31 amended by striking the subsection and inserting in lieu
8 32 thereof the following:
8 33 7. a. Notwithstanding subsection 2, school district
8 34 revenue from property tax levies shall be paid to the school
8 35 district if the school district property levied against is
9 1 located in an urban renewal area in which ten percent or more
9 2 of the property in the urban renewal area is assessed for
9 3 property tax purposes as residential property, except
9 4 residential property that is housing for low or moderate
9 5 income families as that term is defined in section 403.17.
9 6 However, all or a portion of school district property tax
9 7 revenue shall be paid by the school district to the
9 8 municipality if the auditor certifies to the school district
9 9 by July 1 the amount of such revenue that is necessary to pay
9 10 the principal and interest on bonds issued by the municipality
9 11 to finance an urban renewal project, which bonds were issued
9 12 before July 1, 2004. Indebtedness incurred to refund bonds
9 13 issued prior to July 1, 2004, shall not be included in the
9 14 certification. Such school district shall pay over the amount
9 15 certified by November 1 and May 1 of the fiscal year following
9 16 certification to the school district.
9 17 b. For any fiscal year, a municipality may certify to the
9 18 county auditor the school district property tax revenue
9 19 necessary for payment of principal and interest on bonds
9 20 issued prior to July 1, 2004. The municipality may receive
9 21 school district property tax revenue only if the municipality
9 22 certified for such revenue for the fiscal year beginning July
9 23 1, 2004. A municipality shall not certify more than the
9 24 amount the municipality certified for the fiscal year
9 25 beginning July 1, 2004. If for any fiscal year a municipality
9 26 fails to certify to the county auditor for a school district
9 27 by July 1 the amount of school district property tax revenue
9 28 necessary for payment of principal and interest on such bonds,
9 29 as provided in subsection 2, the school district is not
9 30 required to pay over the revenue to the municipality.
9 31 If in any fiscal year a school district and a municipality
9 32 are unable to agree on the amount of school district property
9 33 tax revenue for which a municipality may certify, either party
9 34 may request that the state appeal board review and finally
9 35 pass upon the amount that may be certified. Such appeals must
10 1 be presented in writing to the state appeal board no later
10 2 than July 31 following certification. The burden shall be on
10 3 the municipality to prove that the school district property
10 4 tax revenue is necessary to pay principal and interest on
10 5 bonds issued prior to July 1, 2004. A final decision must be
10 6 issued by the state appeal board no later than the following
10 7 October 1.
10 8 Sec. 20. Section 403.20, Code 2003, is amended to read as
10 9 follows:
10 10 403.20 PERCENTAGE OF ADJUSTMENT CONSIDERED IN VALUE
10 11 ASSESSMENT.
10 12 In determining the assessed value of property within an
10 13 urban renewal area which is subject to a division of tax
10 14 revenues pursuant to section 403.19, the difference between
10 15 the actual value of the property as determined by the assessor
10 16 each year and the percentage of adjustment certified for that
10 17 year by the director of revenue and finance on or before
10 18 November 1 reductions applied to the property pursuant to
10 19 section 441.21, subsection 9 4, 5, 5A, or 5B, multiplied by
10 20 the actual value of the property as determined by the
10 21 assessor, shall be subtracted from the actual value of the
10 22 property as determined pursuant to section 403.19, subsection
10 23 1. If the assessed value of the property as determined
10 24 pursuant to section 403.19, subsection 1, is reduced to zero,
10 25 the additional valuation reduction shall be subtracted from
10 26 the actual value of the property as determined by the
10 27 assessor.
10 28 Sec. 21. Section 404.3, subsection 1, Code 2003, is
10 29 amended to read as follows:
10 30 1. All qualified real estate assessed as residential
10 31 property is eligible to receive an exemption from taxation
10 32 based on the actual value added by the improvements. The
10 33 exemption is for a period of ten years. The amount of the
10 34 exemption is equal to a percent of the actual value added by
10 35 the improvements, determined as follows: One hundred fifteen
11 1 percent of the value added by the improvements. However, the
11 2 amount of the actual value added by the improvements which
11 3 shall be used to compute the exemption shall not exceed twenty
11 4 thousand dollars and the granting of the exemption shall not
11 5 result in the actual value of the qualified real estate being
11 6 reduced below the actual value on which amount of the
11 7 homestead credit is computed exemption under section 425.1.
11 8 Sec. 22. Section 414.28A, unnumbered paragraph 2, Code
11 9 2003, is amended to read as follows:
11 10 "Land=leased community" means any site, lot, field, or
11 11 tract of land under common ownership upon which ten or more
11 12 occupied manufactured homes are harbored, either free of
11 13 charge or for revenue purposes, and shall include any
11 14 building, structure, or enclosure used or intended for use as
11 15 part of the equipment of the land=leased community. The term
11 16 "land=leased community" shall not be construed to include
11 17 homes, buildings, or other structures temporarily maintained
11 18 by any individual, educational institution, or company on
11 19 their own premises and used exclusively to house their own
11 20 labor or students. A manufactured home located in a land=
11 21 leased community shall be taxed under section 435.22 as if the
11 22 manufactured home were located in a mobile home park.
11 23 Sec. 23. Section 425.1, Code 2003, is amended by striking
11 24 the section and inserting in lieu thereof the following:
11 25 425.1 HOMESTEAD ASSESSMENT REDUCTION.
11 26 For valuations established pursuant to section 441.21, as
11 27 of January 1, 2004, the actual value at which an eligible
11 28 homestead is assessed shall be reduced by five thousand
11 29 dollars. The reduction allowed under this part is in addition
11 30 to the reduction in section 441.21, subsection 4.
11 31 Sec. 24. Section 425.2, Code 2003, is amended to read as
11 32 follows:
11 33 425.2 QUALIFYING FOR CREDIT EXEMPTION.
11 34 A person who wishes to qualify for the credit exemption
11 35 allowed under this chapter shall obtain the appropriate forms
12 1 for filing for the credit exemption from the assessor. The
12 2 person claiming the credit exemption shall file a verified
12 3 statement and designation of homestead with the assessor for
12 4 the year for which the person is first claiming the credit
12 5 exemption. The claim shall be filed not later than July 1 of
12 6 the assessment year for which the person is claiming the
12 7 credit exemption. A claim filed after July 1 of the
12 8 assessment year for which the person is claiming the credit
12 9 exemption shall be considered as a claim filed for the
12 10 following year.
12 11 Upon the filing and allowance of the claim, the claim shall
12 12 be allowed on that homestead for successive years without
12 13 further filing as long as the property is legally or equitably
12 14 owned and used as a homestead by that person or that person's
12 15 spouse on July 1 of each of those successive years, and the
12 16 owner of the property being claimed as a homestead declares
12 17 residency in Iowa for purposes of income taxation, and the
12 18 property is occupied by that person or that person's spouse
12 19 for at least six months in each of those calendar years in
12 20 which the fiscal year begins. When the property is sold or
12 21 transferred, the buyer or transferee who wishes to qualify
12 22 shall refile for the credit exemption. However, when the
12 23 property is transferred as part of a distribution made
12 24 pursuant to chapter 598, the transferee who is the spouse
12 25 retaining ownership of the property is not required to refile
12 26 for the credit exemption. Property divided pursuant to
12 27 chapter 598 shall not be modified following the division of
12 28 the property. An owner who ceases to use a property for a
12 29 homestead or intends not to use it as a homestead for at least
12 30 six months in a calendar year shall provide written notice to
12 31 the assessor by July 1 following the date on which the use is
12 32 changed. A person who sells or transfers a homestead or the
12 33 personal representative of a deceased person who had a
12 34 homestead at the time of death, shall provide written notice
12 35 to the assessor that the property is no longer the homestead
13 1 of the former claimant.
13 2 In case the owner of the homestead is in active service in
13 3 the armed forces of this state or of the United States, or is
13 4 sixty=five years of age or older, or is disabled, the
13 5 statement and designation may be signed and delivered by any
13 6 member of the owner's family, by the owner's guardian or
13 7 conservator, or by any other person who may represent the
13 8 owner under power of attorney. If the owner of the homestead
13 9 is married, the spouse may sign and deliver the statement and
13 10 designation. The director of human services or the director's
13 11 designee may make application for the benefits of this chapter
13 12 as the agent for and on behalf of persons receiving assistance
13 13 under chapter 249.
13 14 Any person sixty=five years of age or older or any person
13 15 who is disabled may request, in writing, from the appropriate
13 16 assessor forms for filing for the homestead tax credit
13 17 exemption. Any person sixty=five years of age or older or who
13 18 is disabled may complete the form, which shall include a
13 19 statement of homestead, and mail or return it to the
13 20 appropriate assessor. The signature of the claimant on the
13 21 statement shall be considered the claimant's acknowledgment
13 22 that all statements and facts entered on the form are correct
13 23 to the best of the claimant's knowledge.
13 24 Upon adoption of a resolution by the county board of
13 25 supervisors, any person may request, in writing, from the
13 26 appropriate assessor forms for the filing for the homestead
13 27 tax credit exemption. The person may complete the form, which
13 28 shall include a statement of homestead, and mail or return it
13 29 to the appropriate assessor. The signature of the claimant on
13 30 the statement of homestead shall be considered the claimant's
13 31 acknowledgment that all statements and facts entered on the
13 32 form are correct to the best of the claimant's knowledge.
13 33 Sec. 25. Section 425.3, unnumbered paragraph 4, Code 2003,
13 34 is amended to read as follows:
13 35 The county auditor shall forward the claims to the board of
14 1 supervisors. The board shall allow or disallow the claims.
14 2 If the board disallows a claim, it shall send written notice,
14 3 by mail, to the claimant at the claimant's last known address.
14 4 The notice shall state the reasons for disallowing the claim
14 5 for the credit exemption. The board is not required to send
14 6 notice that a claim is disallowed if the claimant voluntarily
14 7 withdraws the claim.
14 8 Sec. 26. Section 425.6, Code 2003, is amended to read as
14 9 follows:
14 10 425.6 WAIVER BY NEGLECT.
14 11 If a person fails to file a claim or to have a claim on
14 12 file with the assessor for the credits exemptions provided in
14 13 this chapter, the person is deemed to have waived the
14 14 homestead credit exemption for the year in which the person
14 15 failed to file the claim or to have a claim on file with the
14 16 assessor.
14 17 Sec. 27. Section 425.7, subsection 3, Code 2003, is
14 18 amended to read as follows:
14 19 3. If the director of revenue and finance determines that
14 20 a claim for the homestead credit exemption has been allowed by
14 21 the board of supervisors which is not justifiable under the
14 22 law and not substantiated by proper facts, the director may,
14 23 at any time within thirty=six months from July 1 of the year
14 24 in which the claim is allowed, set aside the allowance.
14 25 Notice of the disallowance shall be given to the county
14 26 auditor of the county in which the claim has been improperly
14 27 granted and a written notice of the disallowance shall also be
14 28 addressed to the claimant at the claimant's last known
14 29 address. The claimant or board of supervisors may appeal to
14 30 the state board of tax review pursuant to section 421.1,
14 31 subsection 4. The claimant or the board of supervisors may
14 32 seek judicial review of the action of the state board of tax
14 33 review in accordance with chapter 17A.
14 34 If a claim is disallowed by the director of revenue and
14 35 finance and not appealed to the state board of tax review or
15 1 appealed to the state board of tax review and thereafter
15 2 upheld upon final resolution, including any judicial review,
15 3 any amounts of credits exemptions allowed and paid from the
15 4 homestead credit fund including the penalty, if any, become a
15 5 lien upon the property on which credit was originally granted,
15 6 if still in the hands of the claimant, and not in the hands of
15 7 a bona fide purchaser, and any amount so erroneously paid
15 8 including the penalty, if any, shall be collected by the
15 9 county treasurer in the same manner as other taxes and the
15 10 collections shall be returned to the department of revenue and
15 11 finance and credited to the homestead credit fund. The
15 12 director of revenue and finance county attorney may institute
15 13 legal proceedings against a homestead credit exemption
15 14 claimant for the collection of payments made on disallowed
15 15 credits exemptions and the penalty, if any. If a person makes
15 16 a false claim or affidavit with fraudulent intent to obtain
15 17 the homestead credit exemption, the person is guilty of a
15 18 fraudulent practice and the claim shall be disallowed in full.
15 19 If the credit exemption has been paid applied to the value,
15 20 the amount of the credit exemption credited as taxes plus a
15 21 penalty equal to twenty=five percent of the amount of credit
15 22 the exemption credited as taxes plus interest, at the rate in
15 23 effect under section 421.7, from the time of payment shall be
15 24 collected by the county treasurer in the same manner as other
15 25 property taxes, penalty, and interest are collected and when
15 26 collected shall be paid to the director of revenue and
15 27 finance. If a homestead credit exemption is disallowed and
15 28 the claimant failed to give written notice to the assessor as
15 29 required by section 425.2 when the property ceased to be used
15 30 as a homestead by the claimant, a civil penalty equal to five
15 31 percent of the amount of the disallowed credit exemption
15 32 credited as taxes is assessed against the claimant.
15 33 Sec. 28. Section 425.8, unnumbered paragraph 1, Code 2003,
15 34 is amended to read as follows:
15 35 The director of revenue and finance shall prescribe the
16 1 form for the making of verified statement and designation of
16 2 homestead, the form for the supporting affidavits required
16 3 herein, and such other forms as may be necessary for the
16 4 proper administration of this chapter. Whenever necessary,
16 5 the department of revenue and finance shall forward to the
16 6 county auditors of the several counties in the state the
16 7 prescribed sample forms, and the county auditors shall furnish
16 8 blank forms prepared in accordance therewith with the
16 9 assessment rolls, books, and supplies delivered to the
16 10 assessors. The department of revenue and finance shall
16 11 prescribe and the county auditors shall provide on the forms
16 12 for claiming the homestead credit exemption a statement to the
16 13 effect that the owner realizes that the owner must give
16 14 written notice to the assessor when the owner changes the use
16 15 of the property.
16 16 Sec. 29. Section 425.9, Code 2003, is amended to read as
16 17 follows:
16 18 425.9 CREDITS IN EXCESS OF TAX == APPEALS == REFUNDS.
16 19 If the amount of credit apportioned to any homestead under
16 20 the provisions of this chapter in any year shall exceed the
16 21 total tax, exclusive of any special assessments levied against
16 22 said homestead, then such excess shall be remitted by the
16 23 county treasurer to the department of revenue and finance to
16 24 be redeposited in the homestead credit fund and be reallocated
16 25 the following year by the department as provided hereunder.
16 26 If any claim for credit made hereunder a homestead tax
16 27 exemption has been denied by the board of supervisors, and
16 28 such action is subsequently reversed on appeal, the credit
16 29 exemption shall be allowed on the homestead involved in said
16 30 the appeal, and the director of revenue and finance, the
16 31 county auditor, and the county treasurer shall make such
16 32 credit exemption and change their books and records
16 33 accordingly.
16 34 In the event the appealing taxpayer has paid one or both of
16 35 the installments of the tax payable in the year or years in
17 1 question on such homestead valuation, remittance shall be made
17 2 to such taxpayer of the amount of such credit exemption
17 3 credited as taxes.
17 4 The amount of such credit shall be allocated and paid from
17 5 the surplus redeposited in the homestead credit fund provided
17 6 for in the first paragraph of this section.
17 7 Sec. 30. Section 425.10, Code 2003, is amended to read as
17 8 follows:
17 9 425.10 REVERSAL OF ALLOWED CLAIM.
17 10 In the event any claim is allowed, and subsequently
17 11 reversed on appeal, any credit exemption made thereunder shall
17 12 be void, and the amount of such credit exemption credited as
17 13 taxes shall be charged against the property in question, and
17 14 the director of revenue and finance, the county auditor, and
17 15 the county treasurer are authorized and directed to correct
17 16 their books and records accordingly. The amount of such
17 17 erroneous credit exemption, credited as taxes, when collected,
17 18 shall be returned by the county treasurer to the homestead
17 19 credit fund to be reallocated the following year as provided
17 20 herein general fund of the county.
17 21 Sec. 31. Section 425.11, subsection 3, paragraph a,
17 22 unnumbered paragraph 1, Code 2003, is amended to read as
17 23 follows:
17 24 The homestead includes the dwelling house which the owner,
17 25 in good faith, is occupying as a home on July 1 of the
17 26 assessment year for which the credit exemption is claimed and
17 27 occupies as a home for at least six months during the calendar
17 28 year in which the fiscal year begins, except as otherwise
17 29 provided.
17 30 Sec. 32. Section 425.11, subsection 3, paragraph c, Code
17 31 2003, is amended to read as follows:
17 32 c. It must not embrace more than one dwelling house, but
17 33 where a homestead has more than one dwelling house situated
17 34 thereon, the credit exemption provided for in this chapter
17 35 shall apply to the home and buildings used by the owner, but
18 1 shall not apply to any other dwelling house and buildings
18 2 appurtenant.
18 3 Sec. 33. Section 425.11, subsection 4, Code 2003, is
18 4 amended to read as follows:
18 5 4. The word "owner" shall mean the person who holds the
18 6 fee simple title to the homestead, and in addition shall mean
18 7 the person occupying as a surviving spouse or the person
18 8 occupying under a contract of purchase which contract has been
18 9 recorded in the office of the county recorder of the county in
18 10 which the property is located, or the person occupying the
18 11 homestead under devise or by operation of the inheritance laws
18 12 where the whole interest passes or where the divided interest
18 13 is shared only by persons related or formerly related to each
18 14 other by blood, marriage or adoption, or the person occupying
18 15 the homestead is a shareholder of a family farm corporation
18 16 that owns the property, or the person occupying the homestead
18 17 under a deed which conveys a divided interest where the
18 18 divided interest is shared only by persons related or formerly
18 19 related to each other by blood, marriage or adoption or where
18 20 the person occupying the homestead holds a life estate with
18 21 the reversion interest held by a nonprofit corporation
18 22 organized under chapter 504A, provided that the holder of the
18 23 life estate is liable for and pays property tax on the
18 24 homestead or where the person occupying the homestead holds an
18 25 interest in a horizontal property regime under chapter 499B,
18 26 regardless of whether the underlying land committed to the
18 27 horizontal property regime is in fee or as a leasehold
18 28 interest, provided that the holder of the interest in the
18 29 horizontal property regime is liable for and pays property tax
18 30 on the homestead. For the purpose of this chapter the word
18 31 "owner" shall be construed to mean a bona fide owner and not
18 32 one for the purpose only of availing the person of the
18 33 benefits of this chapter. In order to qualify for the
18 34 homestead tax credit exemption, evidence of ownership shall be
18 35 on file in the office of the clerk of the district court or
19 1 recorded in the office of the county recorder at the time the
19 2 owner files with the assessor a verified statement of the
19 3 homestead claimed by the owner as provided in section 425.2.
19 4 Sec. 34. Section 425.12, Code 2003, is amended to read as
19 5 follows:
19 6 425.12 INDIAN LAND.
19 7 Each forty acres of land, or fraction thereof, occupied by
19 8 a member or members of the Sac and Fox Indians in Tama county,
19 9 which land is held in trust by the secretary of the interior
19 10 of the United States for said Indians, shall be given a
19 11 homestead tax credit exemption within the meaning and under
19 12 the provisions of this chapter. Application for such
19 13 homestead tax credit exemption shall be made to the county
19 14 auditor of Tama county and may be made by a representative of
19 15 the tribal council.
19 16 Sec. 35. Section 425.13, Code 2003, is amended to read as
19 17 follows:
19 18 425.13 CONSPIRACY TO DEFRAUD.
19 19 If any two or more persons conspire and confederate
19 20 together with fraudulent intent to obtain the credit exemption
19 21 provided for under the terms of this chapter by making a false
19 22 deed, or a false contract of purchase, they are guilty of a
19 23 fraudulent practice.
19 24 Sec. 36. Section 425.15, Code 2003, is amended to read as
19 25 follows:
19 26 425.15 DISABLED VETERAN TAX CREDIT EXEMPTION.
19 27 If the owner of a homestead allowed a credit an exemption
19 28 under this chapter is a veteran of any of the military forces
19 29 of the United States, who acquired the homestead under 38
19 30 U.S.C. } 21.801, 21.802, or 38 U.S.C. } 2101, 2102, the credit
19 31 exemption allowed on the homestead from the homestead credit
19 32 fund shall be the entire amount of the tax levied assessed
19 33 value on the homestead. The credit exemption allowed shall be
19 34 continued to the estate of a veteran who is deceased or the
19 35 surviving spouse and any child, as defined in section 234.1,
20 1 who are the beneficiaries of a deceased veteran, so long as
20 2 the surviving spouse remains unmarried. This section is not
20 3 applicable to the holder of title to any homestead whose
20 4 annual income, together with that of the titleholder's spouse,
20 5 if any, for the last preceding twelve=month income tax
20 6 accounting period exceeds thirty=five thousand dollars. For
20 7 the purpose of this section "income" means taxable income for
20 8 federal income tax purposes plus income from securities of
20 9 state and other political subdivisions exempt from federal
20 10 income tax. A veteran or a beneficiary of a veteran who
20 11 elects to secure the credit exemption provided in this section
20 12 is not eligible for any other real property tax exemption
20 13 provided by law for veterans of military service. If a
20 14 veteran acquires a different homestead, the credit exemption
20 15 allowed under this section may be claimed on the new homestead
20 16 unless the veteran fails to meet the other requirements of
20 17 this section.
20 18 Sec. 37. Section 425.16, Code 2003, is amended to read as
20 19 follows:
20 20 425.16 ADDITIONAL TAX CREDIT.
20 21 In addition to the homestead tax credit exemption allowed
20 22 under section 425.1, subsections 1 to 4, persons who own or
20 23 rent their homesteads and who meet the qualifications provided
20 24 in this division are eligible for an extraordinary property
20 25 tax credit or reimbursement exemption.
20 26 For valuations established pursuant to section 441.21, as
20 27 of January 1, 2004, the actual value at which an eligible
20 28 homestead under this part is assessed shall be reduced by two
20 29 thousand five hundred dollars.
20 30 The reduction allowed under this part is in addition to the
20 31 reduction in section 441.21, subsection 4.
20 32 Sec. 38. Section 425.17, subsection 2, Code 2003, is
20 33 amended to read as follows:
20 34 2. "Claimant" means either of the following:
20 35 a. A person filing a claim for credit or reimbursement
21 1 exemption under this division who has attained the age of
21 2 sixty=five years on or before December 31 of the base year or
21 3 who is totally disabled and was totally disabled on or before
21 4 December 31 of the base year and is domiciled in this state at
21 5 the time the claim is filed or at the time of the person's
21 6 death in the case of a claim filed by the executor or
21 7 administrator of the claimant's estate and whose income in the
21 8 base year was less than sixteen thousand five hundred dollars.
21 9 b. A person filing a claim for credit or reimbursement
21 10 exemption under this division who has attained the age of
21 11 twenty=three years on or before December 31 of the base year
21 12 or was a head of household on December 31 of the base year, as
21 13 defined in the Internal Revenue Code, but has not attained the
21 14 age or disability status described in paragraph "a", and is
21 15 domiciled in this state at the time the claim is filed or at
21 16 the time of the person's death in the case of a claim filed by
21 17 the executor or administrator of the claimant's estate, and
21 18 was not claimed as a dependent on any other person's tax
21 19 return for the base year and whose income in the base year was
21 20 less than sixteen thousand five hundred dollars.
21 21 "Claimant" under paragraph "a" or "b" includes a vendee in
21 22 possession under a contract for deed and may include one or
21 23 more joint tenants or tenants in common. In the case of a
21 24 claim for rent constituting property taxes paid, the claimant
21 25 shall have rented the property during any part of the base
21 26 year. In the case of a claim for property taxes due, the The
21 27 claimant shall have occupied the property during any part of
21 28 the fiscal year beginning July 1 of the base year. If a
21 29 homestead is occupied by two or more persons, and more than
21 30 one person is able to qualify as a claimant, the persons may
21 31 each file a claim based upon each person's income and rent
21 32 constituting property taxes paid or property taxes due.
21 33 Sec. 39. Section 425.17, subsection 3, Code 2003, is
21 34 amended by striking the subsection.
21 35 Sec. 40. Section 425.17, subsection 4, Code 2003, is
22 1 amended to read as follows:
22 2 4. "Homestead" means the dwelling owned or rented and
22 3 actually used as a home by the claimant during the period
22 4 specified in subsection 2, and so much of the land surrounding
22 5 it including one or more contiguous lots or tracts of land, as
22 6 is reasonably necessary for use of the dwelling as a home, and
22 7 may consist of a part of a multidwelling or multipurpose
22 8 building and a part of the land upon which it is built. It
22 9 does not include personal property except that a manufactured
22 10 or mobile home may be a homestead. Any dwelling or a part of
22 11 a multidwelling or multipurpose building which is exempt from
22 12 taxation does not qualify as a homestead under this division.
22 13 However, solely for purposes of claimants living in a property
22 14 and receiving reimbursement for rent constituting property
22 15 taxes paid immediately before the property becomes tax exempt,
22 16 and continuing to live in it after it becomes tax exempt, the
22 17 property shall continue to be classified as a homestead. A
22 18 homestead must be located in this state. When a person is
22 19 confined in a nursing home, extended=care facility, or
22 20 hospital, the person shall be considered as occupying or
22 21 living in the person's homestead if the person is the owner of
22 22 the homestead and the person maintains the homestead and does
22 23 not lease, rent, or otherwise receive profits from other
22 24 persons for the use of the homestead.
22 25 Sec. 41. Section 425.17, subsections 8 and 9, Code 2003,
22 26 are amended by striking the subsections.
22 27 Sec. 42. Section 425.18, Code 2003, is amended to read as
22 28 follows:
22 29 425.18 RIGHT TO FILE A CLAIM.
22 30 The right to file a claim for reimbursement or credit
22 31 exemption under this division may be exercised by the claimant
22 32 or on behalf of a claimant by the claimant's legal guardian,
22 33 spouse, or attorney, or by the executor or administrator of
22 34 the claimant's estate. If a claimant dies after having filed
22 35 a claim for reimbursement for rent constituting property taxes
23 1 paid, the amount of the reimbursement may be paid to another
23 2 member of the household as determined by the director. If the
23 3 claimant was the only member of the household, the
23 4 reimbursement may be paid to the claimant's executor or
23 5 administrator, but if neither is appointed and qualified
23 6 within one year from the date of the filing of the claim, the
23 7 reimbursement shall escheat to the state. If a claimant dies
23 8 after having filed a claim for credit for property taxes due
23 9 exemption, the amount of credit the exemption shall be paid
23 10 allowed as if the claimant had not died.
23 11 Sec. 43. Section 425.19, Code 2003, is amended to read as
23 12 follows:
23 13 425.19 CLAIM AND CREDIT OR REIMBURSEMENT EXEMPTION.
23 14 Subject to the limitations provided in this division, a
23 15 claimant may annually claim a credit for property taxes due an
23 16 exemption during the fiscal year next following the base year
23 17 or claim a reimbursement for rent constituting property taxes
23 18 paid in the base year. The amount of the credit for property
23 19 taxes due for a homestead shall be paid on June 15 of each
23 20 year by the director to the county treasurer who shall credit
23 21 the money received against the amount of the property taxes
23 22 due and payable on the homestead of the claimant and the
23 23 amount of the reimbursement for rent constituting property
23 24 taxes paid shall be paid to the claimant from the state
23 25 general fund on or before December 31 of each year.
23 26 Sec. 44. Section 425.20, unnumbered paragraph 1, Code
23 27 2003, is amended by striking the unnumbered paragraph.
23 28 Sec. 45. Section 425.20, unnumbered paragraph 3, Code
23 29 2003, is amended to read as follows:
23 30 In case of sickness, absence, or other disability of the
23 31 claimant or if, in the judgment of the director of revenue and
23 32 finance, good cause exists and the claimant requests an
23 33 extension, the director may extend the time for filing a claim
23 34 for reimbursement or credit exemption. However, any further
23 35 time granted shall not extend beyond December 31 of the year
24 1 following the year in which the claim was required to be
24 2 filed. Claims filed as a result of this paragraph shall be
24 3 filed with the director who shall provide for the
24 4 reimbursement of the claim to the claimant.
24 5 Sec. 46. Section 425.22, Code 2003, is amended to read as
24 6 follows:
24 7 425.22 ONE CLAIMANT PER HOUSEHOLD.
24 8 Only one claimant per household per year shall be entitled
24 9 to reimbursement under this division and only one claimant per
24 10 household per fiscal year shall be entitled to a credit an
24 11 exemption under this division.
24 12 Sec. 47. Section 425.23, Code 2003, is amended by striking
24 13 the section and inserting in lieu thereof the following:
24 14 425.23 ANNUAL ADJUSTMENT TO INCOME.
24 15 1. For the base year beginning in the 1999 calendar year
24 16 and for each subsequent base year, the dollar amounts set
24 17 forth in section 425.17, subsection 2, shall be multiplied by
24 18 the cumulative adjustment factor for that base year.
24 19 "Cumulative adjustment factor" means the product of the annual
24 20 adjustment factor for the 1998 base year and all annual
24 21 adjustment factors for subsequent base years. The cumulative
24 22 adjustment factor applies to the base year beginning in the
24 23 calendar year for which the latest annual adjustment factor
24 24 has been determined.
24 25 2. The annual adjustment factor for the 1998 base year is
24 26 one hundred percent. For each subsequent base year, the
24 27 annual adjustment factor equals the annual inflation factor
24 28 for the calendar year, in which the base year begins, as
24 29 computed in section 422.4 for purposes of the individual
24 30 income tax.
24 31 Sec. 48. Section 425.26, subsections 2 and 3, Code 2003,
24 32 are amended by striking the subsection.
24 33 Sec. 49. Section 425.27, Code 2003, is amended to read as
24 34 follows:
24 35 425.27 AUDIT == RECALCULATION OR DENIAL.
25 1 If on the audit of a claim for credit or reimbursement
25 2 exemption under this division, the director determines the
25 3 amount of the claim to have been incorrectly calculated or
25 4 that the claim is not allowable, the director shall
25 5 recalculate the claim and notify the claimant of the
25 6 recalculation or denial and the reasons for it. The director
25 7 shall not adjust a claim after three years from October 31 of
25 8 the year in which the claim was filed. If the claim for
25 9 reimbursement has been paid, the amount may be recovered by
25 10 assessment in the same manner that income taxes are assessed
25 11 under sections 422.26 and 422.30. If the claim for credit
25 12 exemption has been paid allowed, the director shall give
25 13 notification to the claimant and the county treasurer of the
25 14 recalculation or denial of the claim and the county treasurer
25 15 shall proceed to collect the tax owed in the same manner as
25 16 other property taxes due and payable are collected, if the
25 17 property on which the credit exemption was granted is still
25 18 owned by the claimant, and repay the amount to the director
25 19 upon collection. If the property on which the credit
25 20 exemption was granted is not owned by the claimant, the amount
25 21 may be recovered from the claimant by assessment in the same
25 22 manner that income taxes are assessed under sections 422.26
25 23 and 422.30. The recalculation of the claim property taxes due
25 24 shall be final unless appealed as provided in section 425.31.
25 25 Section 422.70 is applicable with respect to this division.
25 26 Sec. 50. Section 425.28, unnumbered paragraph 2, Code
25 27 2003, is amended to read as follows:
25 28 The department of revenue and finance may release
25 29 information pertaining to a person's eligibility or claim for
25 30 or receipt of rent reimbursement to an employee of the
25 31 department of inspections and appeals in the employee's
25 32 official conduct of an audit or investigation.
25 33 Sec. 51. Section 425.29, Code 2003, is amended to read as
25 34 follows:
25 35 425.29 FALSE CLAIM == PENALTY.
26 1 A person who makes a false affidavit for the purpose of
26 2 obtaining credit or reimbursement an exemption provided for in
26 3 this division or who knowingly receives the credit or
26 4 reimbursement exemption without being legally entitled to it
26 5 or makes claim for the credit or reimbursement exemption in
26 6 more than one county in the state without being legally
26 7 entitled to it is guilty of a fraudulent practice. The claim
26 8 for credit or reimbursement exemption shall be disallowed in
26 9 full and if the claim reduction in value has been paid made
26 10 the amount of the exemption credited as taxes shall be
26 11 recovered in the manner provided in section 425.27. The
26 12 director of revenue and finance shall send a notice of
26 13 disallowance of the claim.
26 14 Sec. 52. Section 426A.6, Code 2003, is amended to read as
26 15 follows:
26 16 426A.6 SETTING ASIDE ALLOWANCE.
26 17 If the director of revenue and finance determines that a
26 18 claim for military service tax exemption has been allowed by a
26 19 board of supervisors which is not justifiable under the law
26 20 and not substantiated by proper facts, the director may, at
26 21 any time within thirty=six months from July 1 of the year in
26 22 which the claim is allowed, set aside the allowance. Notice
26 23 of the disallowance shall be given to the county auditor of
26 24 the county in which the claim has been improperly granted and
26 25 a written notice of the disallowance shall also be addressed
26 26 to the claimant at the claimant's last known address. The
26 27 claimant or the board of supervisors may appeal to the state
26 28 board of tax review pursuant to section 421.1, subsection 4.
26 29 The claimant or the board of supervisors may seek judicial
26 30 review of the action of the state board of tax review in
26 31 accordance with chapter 17A. If a claim is disallowed by the
26 32 director of revenue and finance and not appealed to the state
26 33 board of tax review or appealed to the state board of tax
26 34 review and thereafter upheld upon final resolution, including
26 35 judicial review, the credits exemption credited as taxes
27 1 allowed and paid from the general fund of the state become a
27 2 lien upon the property on which the credit exemption was
27 3 originally granted, if still in the hands of the claimant and
27 4 not in the hands of a bona fide purchaser, the amount of the
27 5 exemption credited as taxes so erroneously paid allowed shall
27 6 be collected by the county treasurer in the same manner as
27 7 other taxes, and the collections shall be returned to the
27 8 department of revenue and finance and credited to the general
27 9 fund of the state. The director of revenue and finance county
27 10 attorney may institute legal proceedings against a military
27 11 service tax exemption claimant for the collection of payments
27 12 made on disallowed exemptions.
27 13 Sec. 53. Section 426A.8, Code 2003, is amended to read as
27 14 follows:
27 15 426A.8 EXCESS REMITTED == APPEALS.
27 16 If the amount of credit apportioned to any property
27 17 eligible to military service tax exemption under this chapter
27 18 in any year shall exceed the total tax, exclusive of any
27 19 special assessments levied against such property eligible for
27 20 military service tax exemption, then the excess shall be
27 21 remitted by the county treasurer to the department of revenue
27 22 and finance to be redeposited in the general fund of the state
27 23 and reallocated the following year by the department.
27 24 If any claim for exemption made has been denied by the
27 25 board of supervisors, and the action is subsequently reversed
27 26 on appeal, the same credit exemption shall be allowed on the
27 27 assessed valuation, not to exceed the amount of the military
27 28 service tax exemption involved in the appeal, as was allowed
27 29 on other military service tax exemption valuations for the
27 30 year or years in question, and the director of revenue and
27 31 finance, the county auditor, and the county treasurer shall
27 32 credit and change their books and records accordingly.
27 33 If the appealing taxpayer has paid one or both of the
27 34 installments of the tax payable in the year or years in
27 35 question on such military service tax exemption valuation,
28 1 remittance shall be made to the county treasurer in the amount
28 2 of such credit exemption credited as taxes.
28 3 The amount of the credit shall be allocated and paid from
28 4 the surplus redeposited in the general fund of the state
28 5 provided for in the first paragraph of this section county.
28 6 Sec. 54. Section 426A.9, Code 2003, is amended to read as
28 7 follows:
28 8 426A.9 ERRONEOUS CREDITS EXEMPTIONS.
28 9 If any claim is allowed, and subsequently reversed on
28 10 appeal, any credit exemption shall be void, and the amount of
28 11 the credit exemption credited as taxes shall be charged
28 12 against the property in question, and the director of revenue
28 13 and finance, the county auditor and the county treasurer shall
28 14 correct their books and records. The amount of the erroneous
28 15 credit exemption credited as taxes, when collected, shall be
28 16 returned by the county treasurer paid to the general fund of
28 17 the state county.
28 18 Sec. 55. Section 426A.11, Code 2003, is amended to read a
28 19 follows:
28 20 426A.11 MILITARY SERVICE == EXEMPTIONS.
28 21 The following exemptions from taxation shall be allowed:
28 22 1. The property, not to exceed two thousand seven hundred
28 23 seventy=eight dollars in taxable value of any veteran, as
28 24 defined in section 35.1, of the First World War.
28 25 2. 1. The property, not to exceed one two thousand eight
28 26 hundred fifty=two dollars in taxable value of an honorably
28 27 separated, retired, furloughed to a reserve, placed on
28 28 inactive status, or discharged veteran, as defined in section
28 29 35.1 or a person currently serving in the armed forces of the
28 30 United States.
28 31 3. 2. Where the word "veteran" appears in this chapter, it
28 32 Service in the armed forces of the United States includes,
28 33 without limitation, the members service as a member of the
28 34 United States air force, merchant marine, and coast guard,
28 35 reserve forces, Iowa national guard, and women's air force and
29 1 army corps.
29 2 4. 3. For the purpose of determining a military tax
29 3 exemption under this section, property includes a manufactured
29 4 or mobile home as defined in section 435.1.
29 5 Sec. 56. Section 426A.13, unnumbered paragraph 1, Code
29 6 2003, is amended to read as follows:
29 7 A person named in section 426A.11, who is a resident of and
29 8 domiciled in the state of Iowa, shall receive a reduction
29 9 equal to the exemption, to be made from any property owned by
29 10 the person or owned by a family farm corporation of which the
29 11 person is a shareholder and who occupies the property and so
29 12 designated by proceeding as provided in the section. To be
29 13 eligible to receive the exemption the person claiming it shall
29 14 have recorded in the office of the county recorder of the
29 15 county in which is located the property designated for the
29 16 exemption, evidence of property ownership by that person or
29 17 the family farm corporation of which the person is a
29 18 shareholder and proof of active military service or the
29 19 military certificate of satisfactory service, order
29 20 transferring to inactive status, reserve, retirement, order of
29 21 separation from service, honorable discharge or a copy of any
29 22 of these documents of the person claiming or through whom is
29 23 claimed the exemption.
29 24 Sec. 57. Section 427.1, subsection 19, unnumbered
29 25 paragraph 8, Code 2003, is amended to read as follows:
29 26 For the purposes of this subsection "pollution=control
29 27 property" means personal property or improvements to real
29 28 property, or any portion thereof, used primarily to control or
29 29 abate pollution of any air or water of this state or used
29 30 primarily to enhance the quality of any air or water of this
29 31 state and "recycling property" means personal property or
29 32 improvements to real property or any portion of the property,
29 33 used primarily in the manufacturing process and resulting
29 34 directly in the conversion of waste plastic, wastepaper
29 35 products, or waste paperboard, into new raw materials or
30 1 products composed primarily of recycled material. In the
30 2 event such property shall also serve other purposes or uses of
30 3 productive benefit to the owner of the property, only such
30 4 portion of the assessed valuation thereof as may reasonably be
30 5 calculated to be necessary for and devoted to the control or
30 6 abatement of pollution, to the enhancement of the quality of
30 7 the air or water of this state, or for recycling shall be
30 8 exempt from taxation under this subsection. "Pollution=
30 9 control property" includes personal or real property that is
30 10 part of an animal feeding operation structure as defined in
30 11 section 459.102, if the agricultural land where the structure
30 12 is located qualifies for the pollution=control exemption as
30 13 provided in subsection 19A. The exemption calculated for
30 14 pollution=control property that is part of an animal feeding
30 15 operation structure is limited to the first one hundred
30 16 thousand dollars in assessed value.
30 17 Sec. 58. Section 427.1, Code 2003, is amended by adding
30 18 the following new subsection:
30 19 NEW SUBSECTION. 19A. a. To qualify for the pollution=
30 20 control exemption in subsection 19, a tract of land containing
30 21 an animal feeding operation structure must be owned by an
30 22 owner as defined in this subsection and a designated person
30 23 must be actively engaged in farming during the calendar year
30 24 preceding the calendar year in which the land is assessed.
30 25 b. For purposes of this subsection:
30 26 (1) "Actively engaged in farming" means the designated
30 27 person is personally involved in the production of crops and
30 28 livestock on the eligible tract on a regular, continuous, and
30 29 substantial basis. However, a lessor, whether under a cash or
30 30 a crop share lease, is not actively engaged in farming on the
30 31 area of the tract covered by the lease. This provision
30 32 applies to both written and oral leases.
30 33 (2) "Agricultural land" means land in tracts of ten acres
30 34 or more excluding any buildings or other structures located on
30 35 the land, and not laid off into lots of less than ten acres or
31 1 divided by streets and alleys into parcels of less than ten
31 2 acres, and in good faith used for agricultural or
31 3 horticultural purposes. Any land in tracts laid off or
31 4 platted into lots of less than ten acres belonging to and a
31 5 part of other lands of more than ten acres and in good faith
31 6 used for agricultural or horticultural purposes is entitled to
31 7 the benefits of this chapter.
31 8 (3) "Crop" or "crop production" includes pastureland.
31 9 (4) "Designated person" means one of the following:
31 10 (a) If the owner is an individual, the designated person
31 11 includes the owner of the tract, the owner's spouse, the
31 12 owner's child or stepchild, and their spouses, or the owner's
31 13 relative within the third degree of consanguinity, and the
31 14 relative's spouse.
31 15 (b) If the owner is a partnership, a partner or the
31 16 partner's spouse.
31 17 (c) If the owner is a family farm corporation, a family
31 18 member who is a shareholder of the family farm corporation or
31 19 the shareholder's spouse.
31 20 (d) If the owner is an authorized farm corporation, a
31 21 shareholder who owns at least fifty=one percent of the stock
31 22 of the authorized farm corporation or the shareholder's
31 23 spouse.
31 24 (e) If the owner is an individual who leases the tract to
31 25 a family farm corporation, a shareholder of the corporation if
31 26 the combined stock of the family farm corporation owned by the
31 27 owner of the tract and persons related to the owner as
31 28 enumerated in subparagraph subdivision (a) is equal to at
31 29 least fifty=one percent of the stock of the family farm
31 30 corporation.
31 31 (f) If the owner is an individual who leases the tract to
31 32 a partnership, a partner if the combined partnership interest
31 33 owned by a designated person as defined in subparagraph
31 34 subdivision (a) is equal to at least fifty=one percent of the
31 35 ownership interest of the partnership.
32 1 (5) "Eligible tract" or "eligible tract of agricultural
32 2 land" means an area of agricultural land which meets all of
32 3 the following:
32 4 (a) Is comprised of all of the contiguous tracts under
32 5 identical legal ownership that are located within the same
32 6 county.
32 7 (b) In the aggregate more than half the acres of the
32 8 contiguous tract are devoted to the production of crops or
32 9 livestock by a designated person who is actively engaged in
32 10 farming.
32 11 (c) For purposes of subparagraph (2), if some or all of
32 12 the contiguous tract is being farmed under a lease
32 13 arrangement, the activities of the lessor do not constitute
32 14 being actively engaged in farming on the areas of the tract
32 15 covered by the lease. If the lessee is a designated person
32 16 who is actively engaged in farming, the acres under lease may
32 17 be considered in determining whether more than half the acres
32 18 of the contiguous tract are devoted to the production of crops
32 19 or livestock.
32 20 (6) "Owner" means any of the following:
32 21 (a) An individual who holds the fee simple title to the
32 22 agricultural land.
32 23 (b) An individual who owns the agricultural land under a
32 24 contract of purchase which has been recorded in the office of
32 25 the county recorder of the county in which the agricultural
32 26 land is located.
32 27 (c) An individual who owns the agricultural land under
32 28 devise or by operation of the inheritance laws, where the
32 29 whole interest passes or where the divided interest is shared
32 30 only by individuals related or formerly related to each other
32 31 by blood, marriage, or adoption.
32 32 (d) An individual who owns the agricultural land under a
32 33 deed which conveys a divided interest, where the divided
32 34 interest is shared only by individuals related or formerly
32 35 related to each other by blood, marriage, or adoption.
33 1 (e) A partnership where all partners are related or
33 2 formerly related to each other by blood, marriage, or
33 3 adoption.
33 4 (f) A family farm corporation or authorized farm
33 5 corporation, as both are defined in section 9H.1, which owns
33 6 the agricultural land.
33 7 Sec. 59. Section 427.9, Code 2003, is amended to read as
33 8 follows:
33 9 427.9 SUSPENSION OF TAXES, ASSESSMENTS, AND RATES OR
33 10 CHARGES, INCLUDING INTEREST, FEES, AND COSTS.
33 11 If a person is a recipient of federal supplementary
33 12 security income or state supplementary assistance, as defined
33 13 in section 249.1, or is a resident of a health care facility,
33 14 as defined by section 135C.1, which is receiving payment from
33 15 the department of human services for the person's care, the
33 16 person shall be deemed to be unable to contribute to the
33 17 public revenue. The director of human services shall notify a
33 18 person receiving such assistance of the tax suspension
33 19 provision and shall provide the person with evidence to
33 20 present to the appropriate county board of supervisors which
33 21 shows the person's eligibility for tax suspension on parcels
33 22 owned, possessed, or upon which the person is paying taxes as
33 23 a purchaser under contract. The board of supervisors so
33 24 notified, without the filing of a petition and statement as
33 25 specified in section 427.8, shall order the county treasurer
33 26 to suspend the collection of all the taxes, special
33 27 assessments, and rates or charges, including interest, fees,
33 28 and costs, assessed against the parcels and remaining unpaid
33 29 by the person or contractually payable by the person, for such
33 30 time as the person remains the owner or contractually
33 31 prospective owner of the parcels, and during the period the
33 32 person receives assistance as described in this section. The
33 33 county board of supervisors shall annually send to the
33 34 department of human services the names and social security
33 35 numbers of persons receiving a tax suspension pursuant to this
34 1 section. The department shall verify the continued
34 2 eligibility for tax suspension of each name on the list and
34 3 shall return the list to the board of supervisors. The
34 4 director of human services shall advise the person that the
34 5 person may apply for an additional property tax credit
34 6 pursuant to sections 425.16 to 425.39 through 425.37 which
34 7 shall be credited against the amount of the taxes suspended.
34 8 Sec. 60. Section 427A.1, subsection 1, paragraph c, Code
34 9 2003, is amended to read as follows:
34 10 c. Buildings, structures or improvements, any of which are
34 11 constructed on or in the land, attached to the land, or placed
34 12 upon a foundation whether or not attached to the foundation.
34 13 However, property taxed under chapter 435 shall not be
34 14 assessed and taxed as real property.
34 15 Sec. 61. Section 427C.12, unnumbered paragraph 2, Code
34 16 2003, is amended to read as follows:
34 17 The board of supervisors shall designate the county
34 18 conservation board or the assessor who shall inspect the area
34 19 for which an application is filed for a fruit=tree or forest
34 20 reservation tax exemption before the application is accepted.
34 21 Use of aerial photographs may be substituted for on=site
34 22 inspection when appropriate. The application can only be
34 23 accepted if it meets the criteria established by the natural
34 24 resource commission to be a fruit=tree or forest reservation.
34 25 Once the application has been accepted, the area shall
34 26 continue to receive the tax exemption during each year in
34 27 which the area is maintained as a fruit=tree or forest
34 28 reservation without the owner having to refile. Acres in a
34 29 forest reservation shall be exempt from school district levies
34 30 only.
34 31 PARAGRAPH DIVIDED. If the property is sold or transferred,
34 32 the seller shall notify the buyer that all, or part of, the
34 33 property is in fruit=tree or forest reservation and subject to
34 34 the recapture tax provisions of this section. The tax
34 35 exemption shall continue to be granted for the remainder of
35 1 the eight=year period for fruit=tree reservation and for the
35 2 following years for forest reservation or until the property
35 3 no longer qualifies as a fruit=tree or forest reservation.
35 4 The owner of the forest or fruit=tree reservation shall
35 5 annually certify to the county conservation board or the
35 6 assessor that the area is being maintained with proper forest
35 7 or fruit=tree management, including necessary pruning and
35 8 planting of trees. The area may be inspected each year by the
35 9 county conservation board or the assessor to determine if the
35 10 area is maintained as a fruit=tree or forest reservation. If
35 11 the area is not maintained or is used for economic gain other
35 12 than as a fruit=tree reservation during any year of the eight=
35 13 year exemption period and any year of the following five years
35 14 or as a forest reservation during any year for which the
35 15 exemption is granted and any of the five years following those
35 16 exemption years, the assessor shall assess the property for
35 17 taxation at its fair market value as of January 1 of that year
35 18 and in addition the area shall be subject to a recapture tax.
35 19 However, the area shall not be subject to the recapture tax if
35 20 the owner, including one possessing under a contract of sale,
35 21 and the owner's direct antecedents or descendants have owned
35 22 the area for more than ten years. The In the case of a fruit=
35 23 tree reservation, the tax shall be computed by multiplying the
35 24 consolidated levy for each of those years, if any, of the five
35 25 preceding years for which the area received the exemption for
35 26 fruit=tree or forest reservation times the assessed value of
35 27 the area that would have been taxed but for the tax exemption.
35 28 In the case of a forest reservation, the tax shall be computed
35 29 by multiplying the school district levy for each of those
35 30 years, if any, of the five preceding years for which the area
35 31 received the exemption for forest reservation times the
35 32 assessed value of the area that would have been taxed but for
35 33 the tax exemption. This The tax shall be entered against the
35 34 property on the tax list for the current year and shall
35 35 constitute a lien against the property in the same manner as a
36 1 lien for property taxes. The tax when collected shall be
36 2 apportioned in the manner provided for the apportionment of
36 3 the property taxes for the applicable tax year.
36 4 Sec. 62. Section 433.6, Code 2003, is amended to read as
36 5 follows:
36 6 433.6 TAXABLE VALUE.
36 7 The taxable value shall be determined by taking the
36 8 percentage of the actual value so ascertained, reduced as
36 9 provided by section 441.21, and the ratio between the actual
36 10 value and the assessed or taxable value of the property of
36 11 each of said companies shall be the same as in the case of
36 12 property of private individuals.
36 13 Sec. 63. Section 435.22, Code 2003, is amended by striking
36 14 the section and inserting in lieu thereof the following:
36 15 435.22 ASSESSMENT == CREDITS.
36 16 A mobile home or manufactured home used primarily as a
36 17 residence shall be assessed as improved residential property
36 18 pursuant to section 441.21, subsection 4, and shall be taxed
36 19 an annual ad valorem tax in the same manner as other
36 20 residential property. A mobile home or manufactured home used
36 21 primarily for commercial or industrial purposes shall be
36 22 assessed as improved commercial or industrial property
36 23 pursuant to section 441.21, subsection 5A, and shall be taxed
36 24 an annual ad valorem tax in the same manner as other
36 25 commercial or industrial property. Persons who own or rent a
36 26 mobile home or manufactured home as a homestead and who meet
36 27 the qualifications provided in sections 425.17 through 425.37
36 28 are eligible for an extraordinary property tax exemption. A
36 29 person who owns a mobile home or manufactured home is eligible
36 30 to apply for the military tax exemption as provided in section
36 31 426A.11.
36 32 Real estate located in a manufactured home community or a
36 33 mobile home park, as defined in section 435.1, shall be
36 34 assessed and taxed as improved residential property. Real
36 35 estate located in a land=leased community, as defined in
37 1 sections 335.30A and 414.28A, shall be assessed and taxed as
37 2 improved residential property.
37 3 Sec. 64. Section 435.23, Code 2003, is amended to read as
37 4 follows:
37 5 435.23 EXEMPTIONS == PRORATING TAX.
37 6 The manufacturer's and dealer's inventory of mobile homes,
37 7 manufactured homes, or modular homes not in use as a place of
37 8 human habitation shall be exempt from the annual tax. All
37 9 travel trailers shall be exempt from this tax. The homes and
37 10 travel trailers in the inventory of manufacturers and dealers
37 11 shall be exempt from personal property tax. The homes coming
37 12 into Iowa from out of state and located in a manufactured home
37 13 community or mobile home park shall be liable for the tax
37 14 computed pro rata to the nearest whole month, for the time the
37 15 home is actually situated in Iowa.
37 16 Sec. 65. Section 435.24, subsections 1, 2, and 4, Code
37 17 2003, are amended to read as follows:
37 18 1. The annual tax is due and payable to the county
37 19 treasurer on or after July 1 in each fiscal year and is
37 20 collectible in the same manner and at the same time as
37 21 ordinary taxes as provided in sections 445.36, 445.37, and
37 22 445.39. Interest at the rate prescribed by law shall accrue
37 23 on unpaid taxes. Both installments of taxes may be paid at
37 24 one time. The September installment represents a tax period
37 25 beginning July 1 and ending December 31. The March
37 26 installment represents a tax period beginning January 1 and
37 27 ending June 30. A mobile home, manufactured home, or modular
37 28 home coming into this state from outside the state, put in use
37 29 from a dealer's inventory, or put in use at any time after
37 30 July 1 or January 1, and located in a manufactured home
37 31 community or mobile home park, is subject to the taxes
37 32 prorated for the remaining unexpired months of the tax period,
37 33 but the purchaser is not required to pay the tax at the time
37 34 of purchase. Interest attaches the following April 1 for
37 35 taxes prorated on or after October 1. Interest attaches the
38 1 following October 1 for taxes prorated on or after April 1.
38 2 Interest at the rate prescribed by law shall accrue on unpaid
38 3 taxes. If the taxes are not paid, the county treasurer shall
38 4 send a statement of delinquent taxes as part of the notice of
38 5 tax sale as provided in section 446.9. The owner of a home
38 6 who sells the home between July 1 and December 31 and obtains
38 7 a tax clearance statement is responsible only for the
38 8 September tax payment and is not required to pay taxes for
38 9 subsequent tax periods. If the owner of a home located in a
38 10 manufactured home community or mobile home park sells the
38 11 home, obtains a tax clearance statement, and obtains a
38 12 replacement home to be located in a manufactured home
38 13 community or mobile home park, the owner shall not pay taxes
38 14 under this chapter for the newly acquired home for the same
38 15 tax period that the owner has paid taxes on the home sold.
38 16 Interest for delinquent taxes shall be calculated to the
38 17 nearest whole dollar. In calculating interest each fraction
38 18 of a month shall be counted as an entire month.
38 19 2. The home owners upon issuance of a certificate of title
38 20 or upon transporting to a new site shall file the address,
38 21 township, and school district, of the location where the home
38 22 is parked with the county treasurer's office. Failure to
38 23 comply is punishable as set out in section 435.18. When the
38 24 new location is outside of a manufactured home community or
38 25 mobile home park, the The county treasurer shall provide to
38 26 the assessor a copy of the tax clearance statement for
38 27 purposes of assessment as real estate on the following January
38 28 1.
38 29 4. The tax is a lien on the vehicle senior to any other
38 30 lien upon it except a judgment obtained in an action to
38 31 dispose of an abandoned home under section 555B.8. The home
38 32 bearing a current registration issued by any other state and
38 33 remaining within this state for an accumulated period not to
38 34 exceed ninety days in any twelve=month period is not subject
38 35 to Iowa tax. However, when one or more persons occupying a
39 1 home bearing a foreign registration are employed in this
39 2 state, there is no exemption from the Iowa tax. This tax is
39 3 in lieu of all other taxes general or local on a home.
39 4 Sec. 66. Section 435.26, subsection 1, paragraph a, Code
39 5 2003, is amended to read as follows:
39 6 a. A mobile home or manufactured home which is located
39 7 outside a manufactured home community or mobile home park
39 8 shall be converted to real estate by being shall be placed on
39 9 a permanent foundation and shall be assessed for real estate
39 10 taxes. A home, after conversion to real estate, is eligible
39 11 for the homestead tax credit and the military tax exemption as
39 12 provided in sections 425.2 and 426A.11. Such mobile home or
39 13 manufactured home is subject to the requirements of this
39 14 section.
39 15 Sec. 67. Section 435.27, subsection 1, Code 2003, is
39 16 amended to read as follows:
39 17 1. A mobile home or manufactured home converted to real
39 18 estate under section 435.26 may be reconverted to a home as
39 19 provided in this section when it that is moved to a
39 20 manufactured home community or mobile home park or a
39 21 manufactured or mobile home retailer's inventory is subject to
39 22 the requirements of this section. When the home is located
39 23 within a manufactured home community or mobile home park, the
39 24 home shall be taxed pursuant to section 435.22, subsection 1.
39 25 Sec. 68. Section 435.27, subsection 3, Code 2003, is
39 26 amended by striking the subsection.
39 27 Sec. 69. Section 435.28, Code 2003, is amended to read as
39 28 follows:
39 29 435.28 COUNTY TREASURER TO NOTIFY ASSESSOR.
39 30 Upon issuance of a certificate of title to a mobile home or
39 31 manufactured home which is not located in a manufactured home
39 32 community or mobile home park or dealer's inventory, the
39 33 county treasurer shall notify the assessor of the existence of
39 34 the home for tax assessment purposes.
39 35 Sec. 70. Section 435.35, Code 2003, is amended to read as
40 1 follows:
40 2 435.35 EXISTING HOME OUTSIDE OF MANUFACTURED HOME
40 3 COMMUNITY OR MOBILE HOME PARK == EXEMPTION.
40 4 A taxable mobile home or manufactured home which is not
40 5 located in a manufactured home community or mobile home park
40 6 as of January 1, 1995, shall be assessed and taxed as real
40 7 estate. The home is also exempt from the permanent foundation
40 8 requirements of this chapter until the home is relocated.
40 9 Sec. 71. Section 437.7, Code 2003, is amended to read as
40 10 follows:
40 11 437.7 TAXABLE VALUE.
40 12 The taxable value of such line or lines of which the
40 13 director of revenue and finance by this chapter is required to
40 14 find the value, shall be determined by taking the percentage
40 15 of the actual reduction in value so ascertained, as provided
40 16 by section 441.21, and the ratio between the actual value and
40 17 the assessed or taxable value of the transmission line or
40 18 lines of each of said companies located outside of cities
40 19 shall be the same as in the case of the property of private
40 20 individuals.
40 21 Sec. 72. Section 441.21, subsection 1, paragraphs e, f,
40 22 and g, Code 2003, are amended by striking the paragraphs.
40 23 Sec. 73. Section 441.21, subsection 2, Code 2003, is
40 24 amended to read as follows:
40 25 2. In the event market value of the property being
40 26 assessed cannot be readily established in the foregoing
40 27 manner, then the assessor may determine the value of the
40 28 property using the other uniform and recognized appraisal
40 29 methods including its productive and earning capacity, if any,
40 30 industrial conditions, its cost, physical and functional
40 31 depreciation and obsolescence and replacement cost, and all
40 32 other factors which would assist in determining the fair and
40 33 reasonable market value of the property but the actual value
40 34 shall not be determined by use of only one such factor. The
40 35 following shall not be taken into consideration: Special
41 1 value or use value of the property to its present owner, and
41 2 the good will or value of a business which uses the property
41 3 as distinguished from the value of the property as property.
41 4 However, in assessing property that is rented or leased to
41 5 low=income individuals and families as authorized by section
41 6 42 of the Internal Revenue Code, as amended, and which section
41 7 limits the amount that the individual or family pays for the
41 8 rental or lease of units in the property, the assessor shall
41 9 use the productive and earning capacity from the actual rents
41 10 received as a method of appraisal and shall take into account
41 11 the extent to which that use and limitation reduces the market
41 12 value of the property. The assessor shall not consider any
41 13 tax credit equity or other subsidized financing as income
41 14 provided to the property in determining the assessed value.
41 15 Upon adoption of uniform rules by the revenue department or
41 16 succeeding authority covering assessments and valuations of
41 17 such properties, said valuation on such properties shall be
41 18 determined in accordance therewith with such uniform rules for
41 19 assessment purposes to assure uniformity, but such rules shall
41 20 not be inconsistent with or change the foregoing means of
41 21 determining the actual, market, taxable, and assessed values.
41 22 In the event market value of newly constructed residential
41 23 property being assessed cannot be readily established because
41 24 of insufficient comparable sales, the assessor shall use the
41 25 replacement cost method to value the property.
41 26 Sec. 74. Section 441.21, subsection 4, Code 2003, is
41 27 amended by striking the subsection and inserting in lieu
41 28 thereof the following:
41 29 4. For valuations established as of January 1, 2004, the
41 30 actual value at which residential property is assessed shall
41 31 be reduced by fifty percent up to a maximum of twenty thousand
41 32 dollars on each parcel of residential property assessed for
41 33 taxation. The reduction shall be applied to an improved
41 34 parcel only.
41 35 Sec. 75. Section 441.21, subsection 5, Code 2003, is
42 1 amended to read as follows:
42 2 5. For valuations established as of January 1, 1979,
42 3 commercial property and industrial property, excluding
42 4 properties referred to in section 427A.1, subsection 7, shall
42 5 be assessed as a percentage of the actual value of each class
42 6 of property. The percentage shall be determined for each
42 7 class of property by the director of revenue for the state in
42 8 accordance with the provisions of this section. For
42 9 valuations established as of January 1, 1979, the percentage
42 10 shall be the quotient of the dividend and divisor as defined
42 11 in this section. The dividend for each class of property
42 12 shall be the total actual valuation for each class of property
42 13 established for 1978, plus six percent of the amount so
42 14 determined. The divisor for each class of property shall be
42 15 the valuation for each class of property established for 1978,
42 16 as reported by the assessors on the abstracts of assessment
42 17 for 1978, plus the amount of value added to the total actual
42 18 value by the revaluation of existing properties in 1979 as
42 19 equalized by the director of revenue pursuant to section
42 20 441.49. For valuations established as of January 1, 1979,
42 21 property valued by the department of revenue pursuant to
42 22 sections 428.24 through 428.29, and chapters 428, 433, 437,
42 23 and 438 shall be considered as one class of property and shall
42 24 be assessed as a percentage of its actual value. The
42 25 percentage shall be determined by the director of revenue in
42 26 accordance with the provisions of this section. For
42 27 valuations established as of January 1, 1979, the percentage
42 28 shall be the quotient of the dividend and divisor as defined
42 29 in this section. The dividend shall be the total actual
42 30 valuation established for 1978 by the department of revenue,
42 31 plus ten percent of the amount so determined. The divisor for
42 32 property valued by the department of revenue pursuant to
42 33 sections 428.24 through 428.29 and chapters 428, 433, 437, and
42 34 438 shall be the valuation established for 1978, plus the
42 35 amount of value added to the total actual value by the
43 1 revaluation of the property by the department of revenue as of
43 2 January 1, 1979. For valuations established as of January 1,
43 3 1980, commercial property and industrial property, excluding
43 4 properties referred to in section 427A.1, subsection 7, shall
43 5 be assessed at a percentage of the actual value of each class
43 6 of property. The percentage shall be determined for each
43 7 class of property by the director of revenue for the state in
43 8 accordance with the provisions of this section. For
43 9 valuations established as of January 1, 1980, the percentage
43 10 shall be the quotient of the dividend and divisor as defined
43 11 in this section. The dividend for each class of property
43 12 shall be the dividend as determined for each class of property
43 13 for valuations established as of January 1, 1979, adjusted by
43 14 the product obtained by multiplying the percentage determined
43 15 for that year by the amount of any additions or deletions to
43 16 actual value, excluding those resulting from the revaluation
43 17 of existing properties, as reported by the assessors on the
43 18 abstracts of assessment for 1979, plus four percent of the
43 19 amount so determined. The divisor for each class of property
43 20 shall be the total actual value of all such property in 1979,
43 21 as equalized by the director of revenue pursuant to section
43 22 441.49, plus the amount of value added to the total actual
43 23 value by the revaluation of existing properties in 1980. The
43 24 director shall utilize information reported on the abstracts
43 25 of assessment submitted pursuant to section 441.45 in
43 26 determining such percentage. For valuations established as of
43 27 January 1, 1980, property valued by the department of revenue
43 28 pursuant to sections 428.24 through 428.29, and chapters 428,
43 29 433, 437, and 438 shall be assessed at a percentage of its
43 30 actual value. The percentage shall be determined by the
43 31 director of revenue in accordance with the provisions of this
43 32 section. For valuations established as of January 1, 1980,
43 33 the percentage shall be the quotient of the dividend and
43 34 divisor as defined in this section. The dividend shall be the
43 35 total actual valuation established for 1979 by the department
44 1 of revenue, plus eight percent of the amount so determined.
44 2 The divisor for property valued by the department of revenue
44 3 pursuant to sections 428.24 through 428.29, and chapters 428,
44 4 433, 437, and 438 shall be the valuation established for 1979,
44 5 plus the amount of value added to the total actual value by
44 6 the revaluation of the property by the department of revenue
44 7 as of January 1, 1980. For valuations established as of
44 8 January 1, 1981, and each year thereafter, the percentage of
44 9 actual value as equalized by the director of revenue and
44 10 finance as provided in section 441.49 at which commercial
44 11 property and industrial property, excluding properties
44 12 referred to in section 427A.1, subsection 7, shall be assessed
44 13 shall be calculated in accordance with the methods provided
44 14 herein, except that any references to six percent in this
44 15 subsection shall be four percent. For valuations established
44 16 as of January 1, 1981, and each year thereafter, the
44 17 percentage of actual value at which property valued by the
44 18 department of revenue and finance pursuant to sections 428.24
44 19 through 428.29, and chapters 428, 433, 437, and 438 shall be
44 20 assessed shall be calculated in accordance with the methods
44 21 provided herein in this section, except that any references to
44 22 ten percent in this subsection shall be eight percent.
44 23 Beginning with valuations established as of January 1, 1979,
44 24 and each year thereafter, property valued by the department of
44 25 revenue and finance pursuant to chapter 434 shall also be
44 26 assessed at a percentage of its actual value which percentage
44 27 shall be equal to the percentage determined by the director of
44 28 revenue and finance for commercial property, industrial
44 29 property, or property valued by the department of revenue and
44 30 finance pursuant to sections 428.24 through 428.29, and
44 31 chapters 428, 433, 437, and 438, whichever is lowest.
44 32 Sec. 76. Section 441.21, Code 2003, is amended by adding
44 33 the following new subsections:
44 34 NEW SUBSECTION. 5A. For valuations established as of
44 35 January 1, 2004, the actual value at which commercial property
45 1 and industrial property is assessed shall be reduced by fifty
45 2 percent up to a maximum of twenty=five thousand dollars on
45 3 each parcel of commercial property or industrial property
45 4 assessed for taxation. The reduction shall be applied to an
45 5 improved parcel only.
45 6 NEW SUBSECTION. 5B. For valuations established as of
45 7 January 1, 2004, the actual value at which agricultural
45 8 property is assessed shall be reduced by fifty percent up to a
45 9 maximum of sixty=five thousand dollars per farm unit. For
45 10 purposes of this subsection, "farm unit" means a single
45 11 contiguous tract of agricultural land, or two or more adjacent
45 12 tracts of agricultural land upon which farming operations are
45 13 being conducted by a person who owns or is purchasing or
45 14 renting all of the land, or by that person's tenant or
45 15 tenants. If a landowner has multiple farm tenants, the land
45 16 on which farming operations are being conducted by each tenant
45 17 is a separate farm unit. Before assigning assessed value per
45 18 tract of agricultural land, the assessor shall establish a per
45 19 acre assessment for the agricultural property.
45 20 Sec. 77. Section 441.21, subsections 9 and 10, Code 2003,
45 21 are amended to read as follows:
45 22 9. Not later than November 1, 1979 2004, and November 1 of
45 23 each subsequent year, the director shall certify to the county
45 24 auditor of each county the percentages of actual value at
45 25 which residential property, agricultural property, commercial
45 26 property, industrial property, and property valued by the
45 27 department of revenue and finance pursuant to sections 428.24
45 28 through 428.29, and chapters 428, 433, 434, 437, and 438 in
45 29 each assessing jurisdiction in the county shall be assessed
45 30 for taxation. The county auditor shall proceed to determine
45 31 the assessed values of agricultural property, residential
45 32 property, commercial property, industrial property, and
45 33 property valued by the department of revenue and finance
45 34 pursuant to sections 428.24 through 428.29, and chapters 428,
45 35 433, 434, 437, and 438 by applying such percentages to the
46 1 current actual value of such property, as reported to the
46 2 county auditor by the assessor, and the assessed values so
46 3 determined shall be the taxable values of such properties upon
46 4 which the levy shall be made.
46 5 10. The percentage of actual value computed by the
46 6 director for agricultural property, residential property,
46 7 commercial property, industrial property, and property valued
46 8 by the department of revenue and finance pursuant to sections
46 9 428.24 through 428.29, and chapters 428, 433, 434, 437, and
46 10 438 and used to determine assessed values of those classes of
46 11 property does not constitute a rule as defined in section
46 12 17A.2, subsection 11.
46 13 Sec. 78. Section 441.21, Code 2003, is amended by adding
46 14 the following new subsection:
46 15 NEW SUBSECTION. 13. a. The reduction amounts in
46 16 subsections 4, 5A, and 5B shall each year be increased for
46 17 inflation. Upon determination of the latest cumulative
46 18 inflation factor, the director of revenue and finance shall
46 19 multiply each dollar amount set forth in subsections 4, 5A,
46 20 and 5B by this cumulative inflation factor, shall round off
46 21 the resulting product to the nearest dollar, and shall
46 22 transmit the result to each city and county assessor for each
46 23 assessment year.
46 24 b. For purposes of this subsection, "cumulative inflation
46 25 factor" means the product of the annual inflation factor for
46 26 the 2004 calendar year and all annual inflation factors for
46 27 subsequent calendar years as determined pursuant to this
46 28 subsection. The cumulative inflation factor applies to all
46 29 tax years beginning on or after January 1 of the calendar year
46 30 for which the latest annual inflation factor has been
46 31 determined.
46 32 c. In determining the annual inflation factor, the
46 33 department shall use the annual percent change, but not less
46 34 than zero percent, in the gross domestic product price
46 35 deflator computed for the second quarter of the calendar year
47 1 by the bureau of economic analysis of the United States
47 2 department of commerce and shall add all of that percent
47 3 change to one hundred percent. The annual inflation factor
47 4 and the cumulative inflation factor shall each be expressed as
47 5 a percentage rounded to the nearest one=tenth of one percent.
47 6 The annual inflation factor shall not be less than one hundred
47 7 percent.
47 8 d. The annual inflation factor for the 2004 assessment
47 9 year is one hundred percent.
47 10 Sec. 79. Section 441.21, Code 2003, is amended by adding
47 11 the following new subsection:
47 12 NEW SUBSECTION. 14. a. A tract of land containing an
47 13 animal feeding operation structure as defined in section
47 14 459.102, must be owned by an owner as defined in this
47 15 subsection and a designated person must be actively engaged in
47 16 farming during the calendar year preceding the calendar year
47 17 in which the land is assessed in order to be assessed and
47 18 taxed as agricultural property. All other tracts of land
47 19 containing an animal feeding operation structure shall be
47 20 assessed and taxed as commercial property.
47 21 b. For purposes of this subsection:
47 22 (1) "Actively engaged in farming" means the designated
47 23 person is personally involved in the production of crops and
47 24 livestock on the eligible tract on a regular, continuous, and
47 25 substantial basis. However, a lessor, whether under a cash or
47 26 a crop share lease, is not actively engaged in farming on the
47 27 area of the tract covered by the lease. This provision
47 28 applies to both written and oral leases.
47 29 (2) "Agricultural land" means land in tracts of ten acres
47 30 or more excluding any buildings or other structures located on
47 31 the land, and not laid off into lots of less than ten acres or
47 32 divided by streets and alleys into parcels of less than ten
47 33 acres, and in good faith used for agricultural or
47 34 horticultural purposes. Any land in tracts laid off or
47 35 platted into lots of less than ten acres belonging to and a
48 1 part of other lands of more than ten acres and in good faith
48 2 used for agricultural or horticultural purposes is entitled to
48 3 the benefits of this chapter.
48 4 (3) "Crop" or "crop production" includes pastureland.
48 5 (4) "Designated person" means one of the following:
48 6 (a) If the owner is an individual, the designated person
48 7 includes the owner of the tract, the owner's spouse, the
48 8 owner's child or stepchild, and their spouses, or the owner's
48 9 relative within the third degree of consanguinity, and the
48 10 relative's spouse.
48 11 (b) If the owner is a partnership, a partner or the
48 12 partner's spouse.
48 13 (c) If the owner is a family farm corporation, a family
48 14 member who is a shareholder of the family farm corporation or
48 15 the shareholder's spouse.
48 16 (d) If the owner is an authorized farm corporation, a
48 17 shareholder who owns at least fifty=one percent of the stock
48 18 of the authorized farm corporation or the shareholder's
48 19 spouse.
48 20 (e) If the owner is an individual who leases the tract to
48 21 a family farm corporation, a shareholder of the corporation if
48 22 the combined stock of the family farm corporation owned by the
48 23 owner of the tract and persons related to the owner as
48 24 enumerated in subparagraph subdivision (a) is equal to at
48 25 least fifty=one percent of the stock of the family farm
48 26 corporation.
48 27 (f) If the owner is an individual who leases the tract to
48 28 a partnership, a partner if the combined partnership interest
48 29 owned by a designated person as defined in subparagraph
48 30 subdivision (a) is equal to at least fifty=one percent of the
48 31 ownership interest of the partnership.
48 32 (5) "Eligible tract" or "eligible tract of agricultural
48 33 land" means an area of agricultural land which meets all of
48 34 the following:
48 35 (a) Is comprised of all of the contiguous tracts under
49 1 identical legal ownership that are located within the same
49 2 county.
49 3 (b) In the aggregate more than half the acres of the
49 4 contiguous tract are devoted to the production of crops or
49 5 livestock by a designated person who is actively engaged in
49 6 farming.
49 7 (c) For purposes of subparagraph (2), if some or all of
49 8 the contiguous tract is being farmed under a lease
49 9 arrangement, the activities of the lessor do not constitute
49 10 being actively engaged in farming on the areas of the tract
49 11 covered by the lease. If the lessee is a designated person
49 12 who is actively engaged in farming, the acres under lease may
49 13 be considered in determining whether more than half the acres
49 14 of the contiguous tract are devoted to the production of crops
49 15 or livestock.
49 16 (6) "Owner" means any of the following:
49 17 (a) An individual who holds the fee simple title to the
49 18 agricultural land.
49 19 (b) An individual who owns the agricultural land under a
49 20 contract of purchase which has been recorded in the office of
49 21 the county recorder of the county in which the agricultural
49 22 land is located.
49 23 (c) An individual who owns the agricultural land under
49 24 devise or by operation of the inheritance laws, where the
49 25 whole interest passes or where the divided interest is shared
49 26 only by individuals related or formerly related to each other
49 27 by blood, marriage, or adoption.
49 28 (d) An individual who owns the agricultural land under a
49 29 deed which conveys a divided interest, where the divided
49 30 interest is shared only by individuals related or formerly
49 31 related to each other by blood, marriage, or adoption.
49 32 (e) A partnership where all partners are related or
49 33 formerly related to each other by blood, marriage, or
49 34 adoption.
49 35 (f) A family farm corporation or authorized farm
50 1 corporation, as both are defined in section 9H.1, which owns
50 2 the agricultural land.
50 3 Sec. 80. NEW SECTION. 441.21A AGRICULTURAL LAND RESERVE.
50 4 1. Land classified for property tax purposes as
50 5 agricultural land shall, upon application of the owner by
50 6 January 10 of the assessment year, be placed in agricultural
50 7 land reserve by the assessor subject to this section.
50 8 2. An eligible tract of agricultural land shall be placed
50 9 in an agricultural land reserve if both of the following
50 10 apply:
50 11 a. The tract is owned by an owner as defined in this
50 12 section and a designated person is actively engaged in farming
50 13 during the calendar year preceding the calendar year in which
50 14 the land is assessed.
50 15 b. The assessed valuation of the land per acre exceeds the
50 16 average assessed valuation per acre of agricultural land in
50 17 the county by an amount equal to twenty=five percent of the
50 18 average valuation per acre of agricultural land in the county.
50 19 3. Agricultural land placed in an agricultural land
50 20 reserve shall be assessed for property tax purposes at the
50 21 average assessed valuation per acre of agricultural land in
50 22 the county. The assessment under this section shall continue
50 23 until the land no longer qualifies for placement in an
50 24 agricultural land reserve pursuant to subsection 2.
50 25 4. Land no longer qualifying for placement in an
50 26 agricultural land reserve is subject to a recapture tax. The
50 27 tax shall be computed by multiplying the consolidated levy for
50 28 each of the years the land was in agricultural land reserve
50 29 times the assessed value of the land that would have been
50 30 taxed but for the special valuation provisions of this
50 31 section. This tax shall be entered against the property on
50 32 the tax list for the current year and shall constitute a lien
50 33 against the property in the same manner as a lien for property
50 34 taxes. The tax when collected shall be apportioned in the
50 35 manner provided for the apportionment of the property taxes
51 1 for the applicable tax year.
51 2 5. For purposes of this section:
51 3 a. "Actively engaged in farming" means the designated
51 4 person is personally involved in the production of crops and
51 5 livestock on the eligible tract on a regular, continuous, and
51 6 substantial basis. However, a lessor, whether under a cash or
51 7 a crop share lease, is not actively engaged in farming on the
51 8 area of the tract covered by the lease. This provision
51 9 applies to both written and oral leases.
51 10 b. "Agricultural land" means land in tracts of ten acres
51 11 or more excluding any buildings or other structures located on
51 12 the land, and not laid off into lots of less than ten acres or
51 13 divided by streets and alleys into parcels of less than ten
51 14 acres, and in good faith used for agricultural or
51 15 horticultural purposes. Any land in tracts laid off or
51 16 platted into lots of less than ten acres belonging to and a
51 17 part of other lands of more than ten acres and in good faith
51 18 used for agricultural or horticultural purposes is entitled to
51 19 the benefits of this chapter.
51 20 c. "Crop" or "crop production" includes pastureland.
51 21 d. "Designated person" means one of the following:
51 22 (1) If the owner is an individual, the designated person
51 23 includes the owner of the tract, the owner's spouse, the
51 24 owner's child or stepchild, and their spouses, or the owner's
51 25 relative within the third degree of consanguinity, and the
51 26 relative's spouse.
51 27 (2) If the owner is a partnership, a partner or the
51 28 partner's spouse.
51 29 (3) If the owner is a family farm corporation, a family
51 30 member who is a shareholder of the family farm corporation or
51 31 the shareholder's spouse.
51 32 (4) If the owner is an authorized farm corporation, a
51 33 shareholder who owns at least fifty=one percent of the stock
51 34 of the authorized farm corporation or the shareholder's
51 35 spouse.
52 1 (5) If the owner is an individual who leases the tract to
52 2 a family farm corporation, a shareholder of the corporation if
52 3 the combined stock of the family farm corporation owned by the
52 4 owner of the tract and persons related to the owner as
52 5 enumerated in subparagraph (1) is equal to at least fifty=one
52 6 percent of the stock of the family farm corporation.
52 7 (6) If the owner is an individual who leases the tract to
52 8 a partnership, a partner if the combined partnership interest
52 9 owned by a designated person as defined in subparagraph (1) is
52 10 equal to at least fifty=one percent of the ownership interest
52 11 of the partnership.
52 12 e. "Eligible tract" or "eligible tract of agricultural
52 13 land" means an area of agricultural land which meets all of
52 14 the following:
52 15 (1) Is comprised of all of the contiguous tracts under
52 16 identical legal ownership that are located within the same
52 17 county.
52 18 (2) In the aggregate more than half the acres of the
52 19 contiguous tract are devoted to the production of crops or
52 20 livestock by a designated person who is actively engaged in
52 21 farming.
52 22 (3) For purposes of paragraph "b", if some or all of the
52 23 contiguous tract is being farmed under a lease arrangement,
52 24 the activities of the lessor do not constitute being actively
52 25 engaged in farming on the areas of the tract covered by the
52 26 lease. If the lessee is a designated person who is actively
52 27 engaged in farming, the acres under lease may be considered in
52 28 determining whether more than half the acres of the contiguous
52 29 tract are devoted to the production of crops or livestock.
52 30 f. "Owner" means any of the following:
52 31 (1) An individual who holds the fee simple title to the
52 32 agricultural land.
52 33 (2) An individual who owns the agricultural land under a
52 34 contract of purchase which has been recorded in the office of
52 35 the county recorder of the county in which the agricultural
53 1 land is located.
53 2 (3) An individual who owns the agricultural land under
53 3 devise or by operation of the inheritance laws, where the
53 4 whole interest passes or where the divided interest is shared
53 5 only by individuals related or formerly related to each other
53 6 by blood, marriage, or adoption.
53 7 (4) An individual who owns the agricultural land under a
53 8 deed which conveys a divided interest, where the divided
53 9 interest is shared only by individuals related or formerly
53 10 related to each other by blood, marriage, or adoption.
53 11 (5) A partnership where all partners are related or
53 12 formerly related to each other by blood, marriage, or
53 13 adoption.
53 14 (6) A family farm corporation or authorized farm
53 15 corporation, as both are defined in section 9H.1, which owns
53 16 the agricultural land.
53 17 Sec. 81. Section 441.22, Code 2003, is amended to read as
53 18 follows:
53 19 441.22 FOREST AND FRUIT=TREE RESERVATIONS.
53 20 Forest and fruit=tree reservations fulfilling the
53 21 conditions of sections 427C.1 to 427C.13 shall be exempt from
53 22 taxation, except as otherwise provided in section 427C.12. In
53 23 all other cases where trees are planted upon any tract of
53 24 land, without regard to area, for forest, fruit, shade, or
53 25 ornamental purposes, or for windbreaks, the assessor shall not
53 26 increase the valuation of the property because of such
53 27 improvements.
53 28 Sec. 82. Section 441.40, Code 2003, is amended to read as
53 29 follows:
53 30 441.40 COSTS, FEES AND EXPENSES APPORTIONED.
53 31 The clerk of the court shall likewise certify to the county
53 32 treasurer the costs assessed by the court on any appeal from a
53 33 board of review to the district court, in all cases where said
53 34 costs are taxed against the board of review or any taxing
53 35 body. The district court may award payment of the property
54 1 owner's or aggrieved taxpayer's attorney fees as part of the
54 2 costs assessed by the court to be taxed against the board of
54 3 review or any taxing body. Thereupon the county treasurer
54 4 shall compute and apportion the said costs between the various
54 5 taxing bodies participating in the proceeds of the collection
54 6 of the taxes involved in any such appeal, and said treasurer
54 7 shall so compute and apportion the various amounts which said
54 8 taxing bodies are required to pay in proportion to the amount
54 9 of taxes each of said taxing bodies is entitled to receive
54 10 from the whole amount of taxes involved in each of such
54 11 appeals. The said county treasurer shall deduct from the
54 12 proceeds of all general taxes collected the amount of costs so
54 13 computed and apportioned by the treasurer from the moneys due
54 14 to each taxing body from general taxes collected. The amount
54 15 so deducted shall be certified to each taxing body in lieu of
54 16 moneys collected. Said county treasurer shall pay to the
54 17 clerk of the district court the amount of said costs so
54 18 computed, apportioned and collected by the treasurer in all
54 19 cases now on file or hereafter filed in which said costs have
54 20 not been paid.
54 21 Sec. 83. Section 441.73, subsection 4, Code 2003, is
54 22 amended to read as follows:
54 23 4. The executive council shall transfer for the fiscal
54 24 year beginning July 1, 1992, and each fiscal year thereafter,
54 25 from funds the fund established in sections section 405A.8,
54 26 425.1, and 426.1, an amount necessary to pay litigation
54 27 expenses. The amount of the fund for each fiscal year shall
54 28 not exceed seven hundred thousand dollars. The executive
54 29 council shall determine annually the proportionate amounts
54 30 amount to be transferred from the three separate funds fund.
54 31 At any time when no litigation is pending or in progress the
54 32 balance in the litigation expense fund shall not exceed one
54 33 hundred thousand dollars. Any excess moneys shall be
54 34 transferred in a proportionate amount back to the funds fund
54 35 from which they were originally transferred.
55 1 Sec. 84. Section 443.2, unnumbered paragraph 2, Code 2003,
55 2 is amended to read as follows:
55 3 The county auditor shall list the aggregate actual value
55 4 and the aggregate taxable value of all taxable property within
55 5 the county and each political subdivision including property
55 6 subject to the statewide property tax imposed under section
55 7 437A.18 on the tax list in order that the actual value of the
55 8 taxable property within the county or a political subdivision
55 9 may be ascertained and shown by the tax list for the purpose
55 10 of computing the debt=incurring capacity of the county or
55 11 political subdivision. As used in this section, "actual
55 12 value" is the value determined under section 441.21,
55 13 subsections 1 to 3, prior to the reduction to a percentage of
55 14 in actual value as otherwise provided in section 441.21.
55 15 "Actual value" of property subject to statewide property tax
55 16 is the assessed value under section 437A.18.
55 17 Sec. 85. NEW SECTION. 444.29 PROPERTY TAX LIMITATION.
55 18 1. a. For property taxes due and payable in the fiscal
55 19 year beginning July 1, 2005, and all subsequent fiscal years,
55 20 property taxes levied by a county against residential property
55 21 shall not exceed the following percentages of the actual value
55 22 of the property as determined by the assessor after the
55 23 reduction in section 441.21, subsection 4, is applied:
55 24 (1) In the incorporated areas of the county, three=eighths
55 25 of one percent.
55 26 (2) In the unincorporated areas of the county, three=
55 27 fourths of one percent.
55 28 b. For property taxes due and payable in the fiscal year
55 29 beginning July 1, 2005, and all subsequent fiscal years,
55 30 property taxes levied by a city against residential property
55 31 shall not exceed an amount equal to one percent of the actual
55 32 value of the property as determined by the assessor after the
55 33 reduction in section 441.21, subsection 4, is applied.
55 34 2. a. (1) For property taxes due and payable in the
55 35 fiscal year beginning July 1, 2005, property taxes levied by a
56 1 county against commercial property shall not exceed the
56 2 following percentages of the actual value of the property as
56 3 determined by the assessor after the reduction in section
56 4 441.21, subsection 5A, is applied:
56 5 (a) In the incorporated areas of the county, one percent.
56 6 (b) In the unincorporated areas of the county, two
56 7 percent.
56 8 (2) For property taxes due and payable in the fiscal year
56 9 beginning July 1, 2006, property taxes levied by a county
56 10 against commercial property shall not exceed the following
56 11 percentages of the actual value of the property as determined
56 12 by the assessor after the reduction in section 441.21,
56 13 subsection 5A, is applied:
56 14 (a) In the incorporated areas of the county, seven=eighths
56 15 of one percent.
56 16 (b) In the unincorporated areas of the county, one and
56 17 three=fourths percent.
56 18 (3) For property taxes due and payable in the fiscal year
56 19 beginning July 1, 2007, and all subsequent fiscal years,
56 20 property taxes levied by a county against commercial property
56 21 shall not exceed the following percentages of the actual value
56 22 of the property as determined by the assessor after the
56 23 reduction in section 441.21, subsection 5A, is applied:
56 24 (a) In the incorporated areas of the county, three=fourths
56 25 of one percent.
56 26 (b) In the unincorporated areas of the county, one and
56 27 one=half percent.
56 28 b. (1) For property taxes due and payable in the fiscal
56 29 year beginning July 1, 2005, property taxes levied by a city
56 30 against commercial property shall not exceed an amount equal
56 31 to two percent of the actual value of the property as
56 32 determined by the assessor after the reduction in section
56 33 441.21, subsection 5A, is applied.
56 34 (2) For property taxes due and payable in the fiscal year
56 35 beginning July 1, 2006, property taxes levied by a city
57 1 against commercial property shall not exceed an amount equal
57 2 to one and three=fourths percent of the actual value of the
57 3 property as determined by the assessor after the reduction in
57 4 section 441.21, subsection 5A, is applied.
57 5 (3) For property taxes due and payable in the fiscal year
57 6 beginning July 1, 2007, and all subsequent fiscal years,
57 7 property taxes levied by a city against commercial property
57 8 shall not exceed an amount equal to one and one=half percent
57 9 of the actual value of the property as determined by the
57 10 assessor after the reduction in section 441.21, subsection 5A,
57 11 is applied.
57 12 3. a. For property taxes due and payable in the fiscal
57 13 year beginning July 1, 2005, and all subsequent fiscal years,
57 14 property taxes levied by a county against industrial property
57 15 shall not exceed the following percentages of the actual value
57 16 of the property as determined by the assessor after the
57 17 reduction in section 441.21, subsection 4, is applied:
57 18 (1) In the incorporated areas of the county, one percent.
57 19 (2) In the unincorporated area of the county, two percent.
57 20 b. For property taxes due and payable in the fiscal year
57 21 beginning July 1, 2005, and all subsequent fiscal years,
57 22 property taxes levied by a city against industrial property
57 23 shall not exceed an amount equal to two percent of the actual
57 24 value of the property as determined by the assessor after the
57 25 reduction in section 441.21, subsection 5A, is applied.
57 26 4. a. For property taxes due and payable in the fiscal
57 27 year beginning July 1, 2005, and all subsequent fiscal years,
57 28 property taxes levied by a county against agricultural
57 29 property shall not exceed the following percentages of the
57 30 actual value of the property as determined by the assessor
57 31 after the reduction in section 441.21, subsection 5B, is
57 32 applied:
57 33 (1) In the incorporated areas of the county, one=half of
57 34 one percent.
57 35 (2) In the unincorporated areas of the county, three=
58 1 fourths of one percent.
58 2 b. For property taxes due and payable in the fiscal year
58 3 beginning July 1, 2005, and all subsequent fiscal years,
58 4 property taxes levied by a city against agricultural property
58 5 shall not exceed an amount equal to one percent of the actual
58 6 value of the property as determined by the assessor after the
58 7 reduction in section 441.21, subsection 5B, is applied.
58 8 Sec. 86. NEW SECTION. 444.30 PROPERTY TAX LIMITATION ==
58 9 CONSUMER PRICE INDEX.
58 10 1. Notwithstanding the limitations in section 444.29, the
58 11 percentage increase in the amount of property taxes to be
58 12 levied against any class of property for the next fiscal year
58 13 cannot exceed the amount computed in this section.
58 14 2. The property tax increase limitation shall be computed
58 15 as follows:
58 16 a. Determine the amount of property taxes levied as a
58 17 percent of actual value in the current fiscal year.
58 18 b. Determine the sum of the amount of actual value of all
58 19 taxable property for the current fiscal year and the increase
58 20 in actual value of property due to new construction, additions
58 21 or improvements to existing structures, expiration of tax
58 22 abatement under chapter 404, and any increase in valuation due
58 23 to reclassification of property.
58 24 c. Multiply the percent calculated in paragraph "a" times
58 25 the amount in paragraph "b".
58 26 d. Multiply the product determined in paragraph "c" times
58 27 the sum of one plus the consumer price index.
58 28 3. For purposes of this section, "consumer price index"
58 29 means the percentage rate of change in the consumer price
58 30 index as tabulated by the United States department of labor,
58 31 bureau of labor statistics, for the twelve=month period ending
58 32 June 30 of the previous fiscal year.
58 33 Sec. 87. Section 445.1, subsection 6, Code 2003, is
58 34 amended to read as follows:
58 35 6. "Taxes" means an annual ad valorem tax, a special
59 1 assessment, a drainage tax, and a rate or charge, and taxes on
59 2 homes pursuant to chapter 435 which are collectible by the
59 3 county treasurer.
59 4 Sec. 88. Section 445.39, Code 2003, is amended to read as
59 5 follows:
59 6 445.39 INTEREST ON DELINQUENT TAXES.
59 7 If the first installment of taxes is not paid by the
59 8 delinquent date specified in section 445.37, the installment
59 9 becomes due and draws interest of three=fourths of one and
59 10 one=half percent per month until paid, from the delinquent
59 11 date following the levy. If the last half is not paid by the
59 12 delinquent date specified for it in section 445.37, the same
59 13 interest shall be charged from the date the last half became
59 14 delinquent. However, after April 1 in a fiscal year when late
59 15 delivery of the tax list referred to in chapter 443 results in
59 16 a delinquency date later than October 1 for the first
59 17 installment, interest on delinquent first installments shall
59 18 accrue as if delivery were made on the previous June 30. The
59 19 interest imposed under this section shall be computed to the
59 20 nearest whole dollar and the amount of interest shall not be
59 21 less than one dollar. In calculating interest each fraction
59 22 of a month shall be counted as an entire month. The interest
59 23 percentage on delinquent special assessments and rates or
59 24 charges is the same as that for the first installment of
59 25 delinquent ad valorem taxes.
59 26 Sec. 89. Section 447.1, unnumbered paragraph 1, Code 2003,
59 27 is amended to read as follows:
59 28 A parcel sold under this chapter and chapter 446 may be
59 29 redeemed at any time before the right of redemption expires,
59 30 by payment to the county treasurer, to be held by the
59 31 treasurer subject to the order of the purchaser, of the amount
59 32 for which the parcel was sold, including the fee for the
59 33 certificate of purchase, and interest of two one percent per
59 34 month, counting each fraction of a month as an entire month,
59 35 from the month of sale, and the total amount paid by the
60 1 purchaser or the purchaser's assignee for any subsequent year,
60 2 with interest at the same rate added on the amount of the
60 3 payment for each subsequent year from the month of payment,
60 4 counting each fraction of a month as an entire month. The
60 5 amount of interest must be at least one dollar and shall be
60 6 rounded to the nearest whole dollar. Interest shall accrue on
60 7 subsequent amounts from the month of payment by the
60 8 certificate holder.
60 9 Sec. 90. Chapters 425A and 426, Code 2003, are repealed.
60 10 Sections 425.4, 425.21, 425.24, 425.25, 425.33 through 425.36,
60 11 425.39, 425.40, 426A.1A through 426A.5, 435.33, and 435.34,
60 12 Code 2003, are repealed.
60 13 Sec. 91. The homestead property tax exemption,
60 14 extraordinary homestead property tax exemption, and the
60 15 military property tax exemption are not considered newly
60 16 enacted after January 1, 1997, for purposes of section 25B.7.
60 17 Sec. 92. CODE EDITOR DIRECTIVE. The Code editor is
60 18 directed to change the term "credit" to "exemption" anywhere
60 19 it occurs in the Code in reference to the homestead credit.
60 20 The Code editor is further directed to change the terms
60 21 "credit" and "credit or reimbursement" to "exemption" anywhere
60 22 those terms occur in the Code in reference to the
60 23 extraordinary property tax credit or reimbursement.
60 24 Sec. 93. EFFECTIVE AND APPLICABILITY DATES.
60 25 1. This Act takes effect January 1, 2004, and, except as
60 26 provided in subsections 2 through 4, applies to assessment
60 27 years beginning on or after that date.
60 28 2. The sections of this Act amending section 403.19 apply
60 29 to taxes due and payable in the fiscal years beginning on or
60 30 after July 1, 2004.
60 31 3. The sections of this Act repealing chapters 425A and
60 32 426, and amending sections in chapters 425 and 426A, apply to
60 33 taxes due and payable in fiscal years beginning on or after
60 34 July 1, 2004.
60 35 4. The section of this Act amending section 427.1,
61 1 subsection 19, applies to exemptions first applied for on or
61 2 after July 1, 2004.
61 3 EXPLANATION
61 4 This bill makes several changes relating to property
61 5 taxation.
61 6 The bill provides that if a new state mandate is imposed on
61 7 or after July 1, 2004, which requires the performance of a new
61 8 activity or service or the expansion of a service beyond what
61 9 was required before July 1, 2004, the state mandate must be
61 10 fully funded. If the state mandate is not fully funded, the
61 11 affected political subdivisions are not required to comply or
61 12 implement the state mandate. Also, no fines or penalties may
61 13 be imposed on a political subdivision for failure to comply or
61 14 carry out an unfunded state mandate.
61 15 The bill strikes Code section 25B.2, subsection 3, and
61 16 rewrites it as a new section outside the intent section of
61 17 Code chapter 25B. The rewritten section removes a qualifying
61 18 phrase which limits the circumstances under which a political
61 19 subdivision may still be required to carry out an unfunded
61 20 state mandate. The rewritten section also strikes the
61 21 exception for federal mandates and for mandates relating to
61 22 public retirement systems. The rewritten section does not
61 23 include area education agencies and community colleges in the
61 24 definition of "political subdivision".
61 25 The bill increases the regular program foundation base per
61 26 pupil from 87.5 percent to 98.4 percent, beginning with the
61 27 budget year commencing July 1, 2005, to offset the increase in
61 28 school property taxes due to the changed method of assessment.
61 29 The bill provides that, beginning with the fiscal year
61 30 beginning July 1, 2005, a school district cannot levy property
61 31 taxes, other than foundation and additional property taxes, in
61 32 excess of .5 percent of the taxable value of residential and
61 33 agricultural property and 1 percent of commercial or
61 34 industrial property. The bill also provides that such school
61 35 district property taxes by class cannot increase by more than
62 1 the consumer price index for the preceding 12 months.
62 2 The bill limits the ending general fund and rural services
62 3 fund balances of a county to 25 percent of actual expenditures
62 4 from each fund in the previous fiscal year. The limitation
62 5 applies to fiscal years beginning on or after July 1, 2008.
62 6 The bill adds definitions for "ending balance target
62 7 percentage" and "gross expenditure amount" to the section
62 8 relating to funding for mental health, mental retardation, and
62 9 developmental disabilities (MH/MR/DD). The bill also requires
62 10 certification of a minimum levy for MH/MR/DD services based on
62 11 a percentage of a county's base year expenditures for services
62 12 less the amount of property tax relief to be received from the
62 13 state.
62 14 The bill provides that the revenues from school district
62 15 property taxes imposed in an urban renewal area that is
62 16 utilizing tax increment financing shall not be paid to the
62 17 municipality implementing the urban renewal plan if more than
62 18 10 percent of the property in the urban renewal area is
62 19 assessed as residential, but shall be paid to the school
62 20 district imposing the taxes unless the school district revenue
62 21 is needed to pay indebtedness for the urban renewal area
62 22 incurred before July 1, 2004. The municipality must have
62 23 certified for the school revenue by July 1, 2004. The amount
62 24 certified is to be paid to the municipality by November 1 and
62 25 May 1 following certification.
62 26 The bill strikes the state reimbursement for the homestead
62 27 property tax credit and military property tax credit and
62 28 changes the credits to exemptions from assessed value. The
62 29 homestead exemption amount is increased from $4,850 to $5,000.
62 30 The military exemption amount is increased from $1,852 to
62 31 $2,000. The amount of exemption for veterans of World War I
62 32 is reduced from $2,778 to $2,000. The military tax exemption
62 33 is expanded to all persons currently serving in the armed
62 34 forces of the United States and those honorably discharged.
62 35 The bill amends provisions relating to the elderly,
63 1 disabled, and low=income property tax credit by making it an
63 2 exemption from assessed value and by eliminating the sliding
63 3 scale for income and exemption amount and replacing it with a
63 4 flat exemption amount of $2,500. Elderly persons, disabled
63 5 persons, and low=income persons all of whom have household
63 6 income of less than $16,500 are eligible for the credit.
63 7 The bill directs the Code editor to change "credit" and
63 8 "credit or reimbursement" to "exemption" wherever it occurs in
63 9 the Code in relation to the military tax credit and the
63 10 homestead tax credit. The bill also provides that all three
63 11 exemptions are not considered to be newly enacted for purposes
63 12 of state mandate funding requirements.
63 13 The bill limits the pollution=control property tax
63 14 exemption for agricultural land owners to $100,000 of value
63 15 and it may only be claimed if the pollution=control property
63 16 is on agricultural land owned by a certain type of owner and
63 17 farmed by a person actively engaged in farming. "Owner" and
63 18 "actively engaged in farming" are defined in the bill.
63 19 The bill provides that any land in a forest reservation is
63 20 exempt from school district levies only. The bill requires
63 21 the owner of land in a forest or fruit=tree reservation to
63 22 annually certify that proper management techniques, such as
63 23 pruning and planting, are being followed.
63 24 The bill removes the square footage tax on mobile homes and
63 25 manufactured homes and replaces it with the ad valorem tax
63 26 imposed on other residences. The bill provides that real
63 27 estate of a mobile home park or land=leased community shall be
63 28 assessed and taxed as improved residential property.
63 29 The bill removes the property tax assessment limitations on
63 30 residential, commercial, industrial, and agricultural property
63 31 and requires that all such property be valued at its fair
63 32 market value. The bill provides a reduction from actual value
63 33 of 50 percent up to a maximum of $65,000 per farm unit. "Farm
63 34 unit" is defined in the bill. The bill also provides a
63 35 reduction from actual value of 50 percent up to a maximum of
64 1 $20,000 for improved residential property and 50 percent up to
64 2 a maximum of $25,000 for improved commercial and improved
64 3 industrial property.
64 4 The bill provides that attorney fees incurred by a property
64 5 owner or aggrieved taxpayer in an appeal of an assessment to
64 6 district court may be awarded by the court and assessed
64 7 against the board of review and any taxing body involved in
64 8 the appeal.
64 9 The bill makes conforming amendments to sections pertaining
64 10 to valuation of property in an urban renewal area and
64 11 valuation of property owned by telegraph and telephone
64 12 companies, express companies, and electric cooperatives.
64 13 The bill also provides that if the assessor is unable to
64 14 establish fair market value of newly constructed residential
64 15 property because of a lack of comparable sales, the assessor
64 16 shall use the replacement cost method to value the property.
64 17 The bill provides that agricultural land containing an
64 18 animal feeding operation structure shall be assessed as
64 19 agricultural land only if it is owned by a certain type of
64 20 owner and is operated by a person actively engaged in farming.
64 21 "Owner" and "actively engaged in farming" are defined in the
64 22 bill.
64 23 The bill provides that agricultural land that is owned by a
64 24 certain type of owner and farmed by a person actively engaged
64 25 in farming shall, upon application of the owner, be placed in
64 26 an agricultural land reserve for purposes of assessment and
64 27 taxation if its assessed value exceeds by 25 percent the
64 28 average assessed value for agricultural land in the county.
64 29 Land in an agricultural land reserve shall be assessed at an
64 30 amount equal to the average assessed value per acre of
64 31 agricultural land in the county. "Owner" and "actively
64 32 engaged in farming" are defined in the bill.
64 33 The bill provides that, beginning with the fiscal year
64 34 beginning in 2005, a county cannot levy property taxes in
64 35 excess of the following percentages:
65 1 For residential property and agricultural property in the
65 2 unincorporated area, three=fourths of 1 percent of the taxable
65 3 value.
65 4 For commercial property in the unincorporated area, 2
65 5 percent. The 2 percent is lowered for successive years until
65 6 it reaches 1 and one=half percent.
65 7 For industrial property in the unincorporated area, 2
65 8 percent.
65 9 For residential property in the incorporated area, three=
65 10 eighths of 1 percent.
65 11 For agricultural property in the incorporated area, one=
65 12 half of 1 percent.
65 13 For commercial property in the incorporated area, 1
65 14 percent. The 1 percent is lowered for successive years until
65 15 it reaches three=fourths of 1 percent.
65 16 For industrial property in the incorporated area, 1
65 17 percent.
65 18 The bill also provides that, beginning with the fiscal year
65 19 beginning in 2005, a city cannot levy property taxes in excess
65 20 of 1 percent of the taxable value of residential property and
65 21 agricultural property, and 2 percent for commercial property.
65 22 The 2 percent is lowered for successive years until it reaches
65 23 1 and one=half percent. For industrial property, 2 percent.
65 24 The bill also provides that city or county property taxes
65 25 by class cannot increase by more than the consumer price index
65 26 for the preceding 12 months.
65 27 The bill lowers the amount of interest that can be charged
65 28 against delinquent property taxes. The interest rate is
65 29 changed from 1 and one=half percent to three=fourths of 1
65 30 percent before tax sale. The interest rate after the
65 31 delinquent taxes are sold at tax sale is changed from 2
65 32 percent to 1 percent.
65 33 The bill repeals the family farm property tax credit and
65 34 the agricultural land property tax credit. The bill makes
65 35 conforming amendments pertaining to these repeals.
66 1 The bill takes effect January 1, 2004, and applies to
66 2 assessment years beginning on or after January 1, 2004.
66 3 The section of the bill amending Code section 403.19 on tax
66 4 increment financing applies to taxes due and payable in fiscal
66 5 years beginning on or after July 1, 2004. The sections of the
66 6 bill amending the homestead tax credit, the elderly, disabled,
66 7 and low=income tax credit, and the military tax credit and
66 8 repealing the family farm tax credit and the agricultural land
66 9 tax credit apply to taxes due and payable in fiscal years
66 10 beginning on or after July 1, 2005. The section of the bill
66 11 limiting the pollution control exemption on agricultural land
66 12 applies to exemptions first applied for on or after July 1,
66 13 2004.
66 14 LSB 1159XS 80
66 15 sc/pj/5.2