Senate File 2134 - Introduced
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 taxation by making changes to assessment of
2 property for purposes of property taxation, county and city
3 budgets funded primarily by property taxes and service
4 charges, school district budgets funded primarily by state and
5 local taxes, state mandates funding, local assessors, and
6 property tax exemptions and credits, creating an
7 implementation committee, and including effective and
8 applicability date provisions.
9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
10 TLSB 5134SS 81
11 sc/gg/14
PAG LIN
1 1 DIVISION I
1 2 LOCAL BUDGETS AND PROPERTY TAXES
1 3 Section 1. Section 23A.2, subsection 10, paragraph h, Code
1 4 2005, is amended to read as follows:
1 5 h. The performance of an activity listed in section
1 6 331.424, Code 2005, as a service for which a supplemental levy
1 7 county may be certified include in its budget.
1 8 Sec. 2. Section 24.48, unnumbered paragraphs 4, 5, and 7,
1 9 Code 2005, are amended by striking the unnumbered paragraphs.
1 10 Sec. 3. Section 24.48, unnumbered paragraph 6, Code 2005,
1 11 is amended to read as follows:
1 12 For purposes of this section only, "political subdivision"
1 13 means a city, school district, or any other special purpose
1 14 district which certifies its budget to the county auditor and
1 15 derives funds from a property tax levied against taxable
1 16 property situated within the political subdivision.
1 17 Sec. 4. Section 25B.2, subsection 3, Code 2005, is amended
1 18 by striking the subsection.
1 19 Sec. 5. NEW SECTION. 25B.3A UNFUNDED STATE MANDATES ==
1 20 EFFECT.
1 21 If, on or after July 1, 2007, a state mandate is enacted by
1 22 the general assembly, or otherwise imposed, on a political
1 23 subdivision and the state mandate requires a political
1 24 subdivision to engage in any new activity, to provide a new
1 25 service, or to provide any service beyond that required by any
1 26 law enacted prior to July 1, 2007, and the state does not
1 27 appropriate moneys to fully fund the cost of the state mandate
1 28 as those costs are identified pursuant to section 25B.5, the
1 29 political subdivision is not required to perform the activity
1 30 or provide the new or increased service and the political
1 31 subdivision shall not be subject to any liabilities imposed by
1 32 the state or the imposition of any fines or penalties for the
1 33 failure to comply with the state mandate.
1 34 Sec. 6. Section 28M.5, subsections 1 and 2, Code
1 35 Supplement 2005, are amended to read as follows:
2 1 1. The commission, with the approval of the board of
2 2 supervisors of participating counties and the city council of
2 3 participating cities in the chapter 28E agreement, may levy
2 4 annually a tax not to exceed ninety=five cents per thousand
2 5 dollars of the assessed value of all taxable property in a
2 6 regional transit district to the extent provided in this
2 7 section. The chapter 28E agreement may authorize the
2 8 commission to levy the tax at different rates within the
2 9 participating cities and counties in amounts sufficient to
2 10 meet the revenue responsibilities of such cities and counties
2 11 as allocated in the budget adopted by the commission.
2 12 However, for a city participating in a regional transit
2 13 district, the total of all the tax levies imposed in the city
2 14 pursuant to section 384.12, subsection 10, and this section
2 15 shall not exceed the aggregate of ninety=five cents per
2 16 thousand dollars of the assessed value of all taxable property
2 17 in the participating city.
2 18 2. If a regional transit district budget allocates revenue
2 19 responsibilities to the board of supervisors of a
2 20 participating county, the amount of the regional transit
2 21 district levy that is the responsibility of the participating
2 22 county shall be deducted from the maximum rates of taxes
2 23 authorized to be levied by the county pursuant to section
2 24 331.423, subsections 1 and 2, as applicable for general and
2 25 rural county services, unless the county meets its revenue
2 26 responsibilities as allocated in the budget from other
2 27 available revenue sources. However, for a regional transit
2 28 district that includes a county with a population of less than
2 29 three hundred thousand, the amount of the regional transit
2 30 district levy that is the responsibility of such participating
2 31 county shall be deducted from the maximum rate of taxes
2 32 authorized to be levied by the county pursuant to section
2 33 331.423, subsection 1 for general county services.
2 34 Sec. 7. Section 37.8, Code 2005, is amended to read as
2 35 follows:
3 1 37.8 LEVY FOR MAINTENANCE.
3 2 For the development, operation, and maintenance of a
3 3 building or monument constructed, purchased, or donated under
3 4 this chapter, a city may levy a tax not to exceed eighty=one
3 5 cents per thousand dollars of assessed value on all the
3 6 taxable property within the city, as provided in section
3 7 384.12, subsection 2 subject to the limitation in section
3 8 384.1.
3 9 Sec. 8. Section 123.38, unnumbered paragraph 2, Code 2005,
3 10 is amended to read as follows:
3 11 Any licensee or permittee, or the licensee's or permittee's
3 12 executor or administrator, or any person duly appointed by the
3 13 court to take charge of and administer the property or assets
3 14 of the licensee or permittee for the benefit of the licensee's
3 15 or permittee's creditors, may voluntarily surrender a license
3 16 or permit to the division. When a license or permit is
3 17 surrendered the division shall notify the local authority, and
3 18 the division or the local authority shall refund to the person
3 19 surrendering the license or permit, a proportionate amount of
3 20 the fee received by the division or the local authority for
3 21 the license or permit as follows: if a license or permit is
3 22 surrendered during the first three months of the period for
3 23 which it was issued, the refund shall be three=fourths of the
3 24 amount of the fee; if surrendered more than three months but
3 25 not more than six months after issuance, the refund shall be
3 26 one=half of the amount of the fee; if surrendered more than
3 27 six months but not more than nine months after issuance, the
3 28 refund shall be one=fourth of the amount of the fee. No
3 29 refund shall be made, however, for any special liquor permit,
3 30 nor for a liquor control license, wine permit, or beer permit
3 31 surrendered more than nine months after issuance. For
3 32 purposes of this paragraph, any portion of license or permit
3 33 fees used for the purposes authorized in section 331.424,
3 34 subsection 1, paragraphs "a" and "b", Code 2005, and in
3 35 section 331.424A, shall not be deemed received either by the
4 1 division or by a local authority. No refund shall be made to
4 2 any licensee or permittee, upon the surrender of the license
4 3 or permit, if there is at the time of surrender, a complaint
4 4 filed with the division or local authority, charging the
4 5 licensee or permittee with a violation of this chapter. If
4 6 upon a hearing on a complaint the license or permit is not
4 7 revoked or suspended, then the licensee or permittee is
4 8 eligible, upon surrender of the license or permit, to receive
4 9 a refund as provided in this section; but if the license or
4 10 permit is revoked or suspended upon hearing the licensee or
4 11 permittee is not eligible for the refund of any portion of the
4 12 license or permit fee.
4 13 Sec. 9. Section 218.99, Code 2005, is amended to read as
4 14 follows:
4 15 218.99 COUNTIES TO BE NOTIFIED OF PATIENTS' PERSONAL
4 16 ACCOUNTS.
4 17 The administrator in control of a state institution shall
4 18 direct the business manager of each institution under the
4 19 administrator's jurisdiction which is mentioned in section
4 20 331.424, subsection 1, paragraphs "a" and "b", Code 2005, and
4 21 for which services are paid under section 331.424A, to
4 22 quarterly inform the county of legal settlement's entity
4 23 designated to perform the county's central point of
4 24 coordination process of any patient or resident who has an
4 25 amount in excess of two hundred dollars on account in the
4 26 patients' personal deposit fund and the amount on deposit.
4 27 The administrators shall direct the business manager to
4 28 further notify the entity designated to perform the county's
4 29 central point of coordination process at least fifteen days
4 30 before the release of funds in excess of two hundred dollars
4 31 or upon the death of the patient or resident. If the patient
4 32 or resident has no county of legal settlement, notice shall be
4 33 made to the director of human services and the administrator
4 34 in control of the institution involved.
4 35 Sec. 10. Section 257.1, subsection 2, unnumbered paragraph
5 1 2, Code 2005, is amended to read as follows:
5 2 For the budget year commencing July 1, 1999 2008, and for
5 3 each succeeding budget year the regular program foundation
5 4 base per pupil is eighty=seven and five=tenths ninety=five
5 5 percent of the regular program state cost per pupil. For the
5 6 budget year commencing July 1, 1991, and for each succeeding
5 7 budget year the special education support services foundation
5 8 base is seventy=nine percent of the special education support
5 9 services state cost per pupil. The combined foundation base
5 10 is the sum of the regular program foundation base and the
5 11 special education support services foundation base.
5 12 Sec. 11. Section 257.3, subsection 1, unnumbered paragraph
5 13 1, Code 2005, is amended to read as follows:
5 14 Except as provided in subsections 2 and 3, a school
5 15 district shall cause to be levied each year, for the school
5 16 general fund, a foundation property tax equal to five four
5 17 dollars and forty thirty=two cents per thousand dollars of
5 18 assessed valuation on all taxable property in the district.
5 19 The county auditor shall spread the foundation levy over all
5 20 taxable property in the district.
5 21 Sec. 12. Section 257.3, subsection 2, paragraphs a and b,
5 22 Code 2005, are amended to read as follows:
5 23 a. Notwithstanding subsection 1, a reorganized school
5 24 district shall cause a foundation property tax of four three
5 25 dollars and forty fifty=two cents per thousand dollars of
5 26 assessed valuation to be levied on all taxable property which,
5 27 in the year preceding a reorganization, was within a school
5 28 district affected by the reorganization as defined in section
5 29 275.1, or in the year preceding a dissolution was a part of a
5 30 school district that dissolved if the dissolution proposal has
5 31 been approved by the director of the department of education
5 32 pursuant to section 275.55.
5 33 b. In succeeding school years, the foundation property tax
5 34 levy on that portion shall be increased to the rate of four
5 35 three dollars and ninety ninety=two cents per thousand dollars
6 1 of assessed valuation the first succeeding year, five four
6 2 dollars and fifteen twelve cents per thousand dollars of
6 3 assessed valuation the second succeeding year, and five four
6 4 dollars and forty thirty=two cents per thousand dollars of
6 5 assessed valuation the third succeeding year and each year
6 6 thereafter.
6 7 Sec. 13. NEW SECTION. 257A.1 PROPERTY TAX LIMITATION.
6 8 1. For property taxes due and payable in the fiscal year
6 9 beginning July 1, 2008, and all subsequent fiscal years,
6 10 property taxes levied by a school district shall not exceed
6 11 the following percentages of the actual value of the property
6 12 as determined by the assessor after application of the
6 13 appropriate reduction in section 441.21:
6 14 a. For residential property, one=fourth of one percent.
6 15 b. For income residential property, one=fourth of one
6 16 percent.
6 17 c. For commercial property, three=fourths of one percent.
6 18 d. For industrial property, one=half of one percent.
6 19 e. For agricultural property, one=fourth of one percent.
6 20 2. In any fiscal year, the ratio of the percentage amount
6 21 actually levied to the maximum percentage levy allowed shall
6 22 be the same for each type of property in subsection 1.
6 23 3. This section applies to all school district property
6 24 tax levies, other than those authorized in sections 257.3 and
6 25 257.4.
6 26 4. a. For the fiscal year beginning July 1, 2008, the
6 27 percentage tax rate levied against each type of property
6 28 described in subsection 1 shall not exceed the sum of one=
6 29 fourth of one percent plus the corresponding percentage tax
6 30 rate imposed against that type of property in the fiscal year
6 31 beginning July 1, 2007. For the fiscal years beginning July
6 32 1, 2009, and July 1, 2010, the percentage tax rate levied
6 33 against each type of property described in subsection 1 shall
6 34 not exceed the sum of one=fourth of one percent plus the
6 35 percentage tax rate imposed for the previous fiscal year.
7 1 Implementation of this subsection shall not cause the
7 2 percentage tax rate levied against any type of property
7 3 described in subsection 1 to exceed the limitations in that
7 4 subsection.
7 5 b. If, for the fiscal year beginning July 1, 2007, the
7 6 corresponding percentage tax rate imposed against each type of
7 7 property described in subsection 1 exceeds the percentage rate
7 8 limitations in subsection 1, a school district shall reduce
7 9 its levy over a three=year period in order to meet the
7 10 percentage rate limitation requirements of subsection 1.
7 11 Sec. 14. NEW SECTION. 257A.2 PROPERTY TAX LIMITATION ==
7 12 CONSUMER PRICE INDEX.
7 13 1. Notwithstanding the limitation in section 257A.1,
7 14 beginning with the fiscal year beginning July 1, 2011, the
7 15 amount of property taxes to be levied by a school district
7 16 against any class of property for the budget year cannot
7 17 exceed the amount computed in this section. This section
7 18 applies to all school district property tax levies, other than
7 19 those authorized in sections 257.3 and 257.4.
7 20 2. The school district property tax limitation shall be
7 21 computed as follows:
7 22 a. Determine the amount of property taxes levied as a
7 23 percent of taxable value in the current fiscal year.
7 24 b. Determine the sum of the amount of taxable value of
7 25 property for the current fiscal year, and the amount of
7 26 increase in taxable value of property due to new construction,
7 27 additions or improvements to existing structures, expiration
7 28 of tax abatement under chapter 404, and any increase in
7 29 valuation because of reclassification of property.
7 30 c. Multiply the percent calculated in paragraph "a" times
7 31 the amount in paragraph "b".
7 32 d. Multiply the product determined in paragraph "c" times
7 33 the sum of one plus the consumer price index.
7 34 3. For purposes of this section, "consumer price index"
7 35 means the percentage rate of change in the consumer price
8 1 index as tabulated by the United States department of labor,
8 2 bureau of labor statistics, for the twelve=month period ending
8 3 June 30 of the previous fiscal year.
8 4 Sec. 15. Section 331.263, subsection 2, Code 2005, is
8 5 amended to read as follows:
8 6 2. The governing body of the community commonwealth shall
8 7 have the authority to levy county taxes and shall have the
8 8 authority to levy city taxes to the extent the city tax levy
8 9 authority is transferred by the charter to the community
8 10 commonwealth. A city participating in the community
8 11 commonwealth shall transfer a portion of the city's tax levy
8 12 authorized under section 384.1 or 384.12, whichever is
8 13 applicable, to the governing body of the community
8 14 commonwealth. The maximum rates of taxes authorized to be
8 15 levied under sections section 384.1 and 384.12 by a city
8 16 participating in the community commonwealth shall be reduced
8 17 by an amount equal to the rates of the same or similar taxes
8 18 levied in the city by the governing body of the community
8 19 commonwealth.
8 20 Sec. 16. Section 331.301, subsections 11 and 12, Code
8 21 2005, are amended to read as follows:
8 22 11. A county may levy for tort liability insurance,
8 23 property insurance, and any other insurance that may be
8 24 necessary in the operation of the county, costs of a self=
8 25 insurance program, costs of a local government risk pool, and
8 26 amounts payable under any insurance agreements to provide or
8 27 procure such insurance, self=insurance program, or local
8 28 government risk pool. A county may enter into insurance
8 29 agreements obligating the county to make payments beyond its
8 30 current budget year to procure or provide for a policy of
8 31 insurance, a self=insurance program, or a local government
8 32 risk pool to protect the county against tort liability, loss
8 33 of property, or any other risk associated with the operation
8 34 of the county. Such a self=insurance program or local
8 35 government risk pool is not insurance and is not subject to
9 1 regulation under chapters 505 through 523C. However, those
9 2 self=insurance plans regulated pursuant to section 509A.14
9 3 shall remain subject to the requirements of section 509A.14
9 4 and rules adopted pursuant to that section.
9 5 12. The board of supervisors may credit funds to a reserve
9 6 for the purposes authorized by subsection 11 of this section;
9 7 section 331.424, subsection 1, paragraph "f"; and section
9 8 331.441, subsection 2, paragraph "b". Moneys credited to the
9 9 reserve, and interest earned on such moneys, shall remain in
9 10 the reserve until expended for purposes authorized by
9 11 subsection 11 of this section; section 331.424, subsection 1,
9 12 paragraph "f"; or section 331.441, subsection 2, paragraph
9 13 "b".
9 14 Sec. 17. Section 331.421, Code 2005, is amended by adding
9 15 the following new subsections:
9 16 NEW SUBSECTION. 1A. "Budget year" is the fiscal year
9 17 beginning during the calendar year in which a budget is first
9 18 certified.
9 19 NEW SUBSECTION. 2A. "Current fiscal year" is the fiscal
9 20 year ending during the calendar year in which a budget is
9 21 first certified.
9 22 Sec. 18. Section 331.421, subsection 10, Code 2005, is
9 23 amended by striking the subsection.
9 24 Sec. 19. Section 331.422, unnumbered paragraph 1, Code
9 25 2005, is amended to read as follows:
9 26 Subject to this section and sections 331.423 through
9 27 331.426 331.424C or as otherwise provided by state law, the
9 28 board of each county shall certify property taxes annually at
9 29 its March session to be levied for county purposes as follows:
9 30 Sec. 20. Section 331.423, Code 2005, is amended by
9 31 striking the section and inserting in lieu thereof the
9 32 following:
9 33 331.423 PROPERTY TAX LEVY LIMITATION.
9 34 1. Annually, the board may certify a levy subject to the
9 35 limits in this section and section 444.29. For property taxes
10 1 due and payable in the fiscal year beginning July 1, 2008, and
10 2 all subsequent fiscal years, property taxes levied by a county
10 3 shall not exceed the following percentages of the actual value
10 4 of the property as determined by the assessor after the
10 5 appropriate reduction in section 441.21 is applied:
10 6 a. For residential property in the incorporated areas of
10 7 the county, one=fourth of one percent.
10 8 b. For residential property in the unincorporated areas of
10 9 the county, one percent.
10 10 c. For commercial property in the incorporated areas of
10 11 the county, three=fourths of one percent.
10 12 d. For commercial property in the unincorporated areas of
10 13 the county, two percent.
10 14 e. For industrial property in the incorporated areas of
10 15 the county, one percent.
10 16 f. For industrial property in the unincorporated areas of
10 17 the county, three percent.
10 18 g. For agricultural property in the incorporated areas of
10 19 the county, one=fourth of one percent.
10 20 h. For agricultural property in the unincorporated areas
10 21 of the county, three=fourths of one percent.
10 22 i. For income residential property in the incorporated
10 23 areas of the county, one=half of one percent.
10 24 j. For income residential property in the unincorporated
10 25 areas of the county, one=half of one percent.
10 26 2. Notwithstanding subsection 1, paragraph "c", property
10 27 taxes levied by a county against commercial property in the
10 28 incorporated areas of the county shall not exceed the
10 29 following percentages of the actual value of the property as
10 30 determined by the assessor after the appropriate reduction in
10 31 section 441.21 is applied:
10 32 a. For property taxes due and payable in the fiscal year
10 33 beginning July 1, 2008, one percent.
10 34 b. For property taxes due and payable in the fiscal year
10 35 beginning July 1, 2009, seven=eighths of one percent.
11 1 3. a. In any fiscal year, the ratio of the percentage
11 2 amount actually levied and the maximum percentage levy allowed
11 3 shall be the same for each type of property in subsection 1,
11 4 paragraphs "a", "c", "e", "g", and "i", and subsection 2, when
11 5 applicable.
11 6 b. In any fiscal year, the ratio of the percentage amount
11 7 actually levied and the maximum percentage levy allowed shall
11 8 be the same for each type of property in subsection 1,
11 9 paragraphs "b", "d", "f", "h", and "j".
11 10 4. The limitations in subsections 1 and 2 do not apply to
11 11 amounts levied for debt service pursuant to section 331.430.
11 12 5. a. For the fiscal year beginning July 1, 2008, the
11 13 percentage tax rate levied against each type of property
11 14 described in subsections 1 and 2 shall not exceed the sum of
11 15 one=fourth of one percent plus the corresponding percentage
11 16 tax rate imposed against that type of property in the fiscal
11 17 year beginning July 1, 2007. For the fiscal years beginning
11 18 July 1, 2009, and July 1, 2010, the percentage tax rate levied
11 19 against each type of property described in subsections 1 and 2
11 20 shall not exceed the sum of one=fourth of one percent plus the
11 21 percentage tax rate imposed for the previous fiscal year.
11 22 Implementation of this subsection shall not cause the
11 23 percentage tax rate levied against any type of property
11 24 described in subsections 1 and 2 to exceed the limitations in
11 25 those subsections.
11 26 b. If, for the fiscal year beginning July 1, 2007, the
11 27 corresponding percentage tax rate imposed against each type of
11 28 property described in subsections 1 and 2 exceeds the
11 29 percentage rate limitations in those subsections, a county
11 30 shall reduce its levy over a three=year period in order to
11 31 meet the percentage rate limitation requirements of
11 32 subsections 1 and 2.
11 33 Sec. 21. NEW SECTION. 331.423A ENDING FUND BALANCE.
11 34 1. Effective for a fiscal year beginning on or after July
11 35 1, 2011, budgeted ending fund balances for a budget year in
12 1 excess of twenty=five percent of budgeted expenditures in
12 2 either the general fund or rural services fund for that budget
12 3 year shall be explicitly reserved or designated for a specific
12 4 purpose and specifically described in the certified budget.
12 5 The certified budget for the budget year shall include a
12 6 description of any changes from the current fiscal year to the
12 7 explicitly reserved or designated purpose for the excess
12 8 ending fund balance as specifically described in the certified
12 9 budget. For purposes of this section, ending fund balances
12 10 shall be determined either on a cash basis or an accrual
12 11 basis, whichever is consistent with the method used for the
12 12 county's budget. The description shall include the projected
12 13 date that the expenditures will be appropriated for the
12 14 specific purpose. Budgeted ending fund balances reserved or
12 15 designated shall only be used for the purpose specifically
12 16 described in the certified budget. The certified budget shall
12 17 not be amended for the purpose of changing the specific
12 18 purpose after the budget year begins.
12 19 2. In a protest to the county budget under section
12 20 331.436, the county shall have the burden of proving that the
12 21 budgeted ending fund balances in excess of twenty=five percent
12 22 are reasonably likely to be appropriated for the explicitly
12 23 reserved or designated specific purpose by the date identified
12 24 in the certified budget.
12 25 3. The budgeted ending fund balance in excess of twenty=
12 26 five percent of expenditures for the general fund or rural
12 27 services fund shall be considered an increase in an item in
12 28 the budget for purposes of section 24.28. The state appeal
12 29 board may certify a decision in accordance with section 24.32
12 30 that requires a reduction in the budgeted ending fund balance
12 31 for a particular fund.
12 32 4. For purposes of this section, the general fund includes
12 33 the general basic fund and the general supplemental fund and
12 34 the rural services fund includes the rural services basic fund
12 35 and the rural services supplemental fund.
13 1 Sec. 22. NEW SECTION. 331.423B SERVICE CHARGE IN LIEU OF
13 2 PROPERTY TAXES.
13 3 A county may adopt an ordinance imposing a service charge
13 4 against all property located in the county. Service charges
13 5 are due and payable at the same time and in the same manner as
13 6 property taxes are paid. Service charges collected pursuant
13 7 to this section shall be deposited into the county general
13 8 services fund or rural services fund, as applicable, for use
13 9 in funding the service for which the service charge was
13 10 imposed. The maximum percentages of actual value allowed to
13 11 be levied pursuant to section 331.423 shall be adjusted to
13 12 reflect the amount of service charges estimated to be
13 13 collected in a fiscal year.
13 14 Real property subject to a service charge, which property
13 15 is exempt from property taxation, shall be valued and assessed
13 16 as required in section 427.1, subsection 18, and in accordance
13 17 with chapter 441, and the owner or other persons as authorized
13 18 by chapter 441 are entitled to protest any assessment and take
13 19 appeals in the same manner as any taxpayer.
13 20 Sec. 23. Section 331.424A, subsection 4, Code Supplement
13 21 2005, is amended to read as follows:
13 22 4. For the fiscal year beginning July 1, 1996, and for
13 23 each subsequent fiscal year, the county shall certify a levy
13 24 for payment of services. For each fiscal year, county
13 25 revenues from taxes imposed by the county credited to the
13 26 services fund shall not exceed an amount equal to the amount
13 27 of base year expenditures for services as defined in section
13 28 331.438, less the amount of property tax relief to be received
13 29 pursuant to section 426B.2, in the fiscal year for which the
13 30 budget is certified. The county auditor and the board of
13 31 supervisors shall reduce the amount of the levy certified for
13 32 the services fund by the amount of property tax relief to be
13 33 received. A levy certified under this section is not subject
13 34 to the any appeal provisions of section 331.426 or to any
13 35 other provision in law authorizing a county to exceed,
14 1 increase, or appeal a property tax levy limit.
14 2 Sec. 24. Section 331.427, subsection 3, paragraph l, Code
14 3 Supplement 2005, is amended to read as follows:
14 4 l. Services listed in section 331.424, subsection 1, Code
14 5 Supplement 2005, and section 331.554.
14 6 Sec. 25. Section 331.428, subsection 2, paragraph d, Code
14 7 2005, is amended to read as follows:
14 8 d. Services listed under section 331.424, subsection 2,
14 9 Code Supplement 2005.
14 10 Sec. 26. Section 331.429, subsection 1, paragraphs a and
14 11 b, Code 2005, are amended to read as follows:
14 12 a. Transfers from the general fund not to exceed in any
14 13 year the dollar equivalent of a tax of sixteen and seven=
14 14 eighths cents per thousand dollars of assessed value on all
14 15 taxable property in the county multiplied by the ratio of
14 16 current taxes actually collected and apportioned for the
14 17 general basic levy to the total general basic levy for the
14 18 current year in section 331.423, subsection 3, paragraph "a",
14 19 and an amount equivalent to the moneys derived by the general
14 20 fund from military service tax credits under chapter 426A,
14 21 manufactured or mobile home taxes under section 435.22, and
14 22 delinquent taxes for prior years collected and apportioned to
14 23 the general basic fund in the current year, multiplied by the
14 24 ratio of sixteen and seven=eighths cents to three dollars and
14 25 fifty cents.
14 26 b. Transfers from the rural services fund not to exceed in
14 27 any year the dollar equivalent of a tax of three dollars and
14 28 three=eighths cents per thousand dollars of assessed value on
14 29 all taxable property not located within the corporate limits
14 30 of a city in the county multiplied by the ratio of current
14 31 taxes actually collected and apportioned for the rural
14 32 services basic levy to the total rural services basic levy for
14 33 the current year in section 331.423, subsection 3, paragraph
14 34 "b", and an amount equivalent to the moneys derived by the
14 35 rural services fund from military service tax credits under
15 1 chapter 426A, manufactured or mobile home taxes under section
15 2 435.22, and delinquent taxes for prior years collected and
15 3 apportioned to the rural services basic fund in the current
15 4 year, multiplied by the ratio of three dollars and three=
15 5 eighths cents to three dollars and ninety=five cents.
15 6 Sec. 27. Section 331.434, unnumbered paragraph 1, Code
15 7 2005, is amended to read as follows:
15 8 Annually, the board of each county, subject to sections
15 9 331.423 through 331.426 331.424C and other applicable state
15 10 law, shall prepare and adopt a budget, certify taxes, and
15 11 provide appropriations as follows:
15 12 Sec. 28. Section 331.435, unnumbered paragraph 1, Code
15 13 2005, is amended to read as follows:
15 14 The board may amend the adopted county budget, subject to
15 15 sections 331.423 through 331.426 331.424C and other applicable
15 16 state law, to permit increases in any class of proposed
15 17 expenditures contained in the budget summary published under
15 18 section 331.434, subsection 3.
15 19 Sec. 29. Section 331.436, Code 2005, is amended by adding
15 20 the following new unnumbered paragraph:
15 21 NEW UNNUMBERED PARAGRAPH. For purposes of a protest to the
15 22 adopted budget, "item" means a budgeted expenditure,
15 23 appropriation, or cash reserve from a fund for a service area,
15 24 program, program element, or purpose.
15 25 Sec. 30. Section 335.30A, unnumbered paragraph 2, Code
15 26 2005, is amended to read as follows:
15 27 "Land=leased community" means any site, lot, field, or
15 28 tract of land under common ownership upon which ten or more
15 29 occupied manufactured homes are harbored, either free of
15 30 charge or for revenue purposes, and shall include any
15 31 building, structure, or enclosure used or intended for use as
15 32 part of the equipment of the land=leased community. The term
15 33 "land=leased community" shall not be construed to include
15 34 homes, buildings, or other structures temporarily maintained
15 35 by any individual, educational institution, or company on
16 1 their own premises and used exclusively to house their own
16 2 labor or students. A manufactured home located in a land=
16 3 leased community shall be taxed under section 435.22 as if the
16 4 manufactured home were located in a mobile home park.
16 5 Sec. 31. Section 373.10, Code 2005, is amended to read as
16 6 follows:
16 7 373.10 TAXING AUTHORITY.
16 8 The metropolitan council shall have the authority to levy
16 9 city taxes to the extent the city tax levy authority is
16 10 transferred by the charter to the metropolitan council. A
16 11 member city shall transfer a portion of the city's tax levy
16 12 authorized under section 384.1 or 384.12, whichever is
16 13 applicable, to the metropolitan council. The maximum rates of
16 14 taxes authorized to be levied under sections section 384.1 and
16 15 384.12 by a member city shall be reduced by an amount equal to
16 16 the rates of the same or similar taxes levied in the city by
16 17 the metropolitan council.
16 18 Sec. 32. Section 384.1, Code 2005, is amended by striking
16 19 the section and inserting in lieu thereof the following:
16 20 384.1 PROPERTY TAX LEVY LIMITATION.
16 21 1. Annually, a city may certify a levy subject to the
16 22 limits in this section and section 444.29. For property taxes
16 23 due and payable in the fiscal year beginning July 1, 2008, and
16 24 all subsequent fiscal years, property taxes levied by a city
16 25 shall not exceed the following percentages of the actual value
16 26 of the property as determined by the assessor after the
16 27 appropriate reduction in section 441.21 is applied:
16 28 a. For residential property, one percent.
16 29 b. For commercial property, one and one=half percent.
16 30 c. For industrial property, two percent.
16 31 d. For agricultural property, three=fourths of one
16 32 percent.
16 33 e. For income residential property, one and one=half
16 34 percent.
16 35 2. Notwithstanding subsection 1, paragraph "b", property
17 1 taxes levied by a city against commercial property shall not
17 2 exceed the following percentages of the actual value of the
17 3 property as determined by the assessor after the appropriate
17 4 reduction in section 441.21 is applied:
17 5 a. For property taxes due and payable in the fiscal year
17 6 beginning July 1, 2008, two percent.
17 7 b. For property taxes due and payable in the fiscal year
17 8 beginning July 1, 2009, one and three=fourths percent.
17 9 3. In any fiscal year, the ratio of the percentage amount
17 10 actually levied to the maximum percentage levy allowed shall
17 11 be the same for each type of property in subsections 1 and 2.
17 12 4. The limitations in subsections 1 and 2 do not apply to
17 13 amounts levied for debt service pursuant to section 384.4.
17 14 5. a. For the fiscal year beginning July 1, 2008, the
17 15 percentage tax rate levied against each type of property
17 16 described in subsections 1 and 2 shall not exceed the sum of
17 17 one=fourth of one percent plus the corresponding percentage
17 18 tax rate imposed against that type of property in the fiscal
17 19 year beginning July 1, 2007. For the fiscal years beginning
17 20 July 1, 2009, and July 1, 2010, the percentage tax rate levied
17 21 against each type of property described in subsections 1 and 2
17 22 shall not exceed the sum of one=fourth of one percent plus the
17 23 percentage tax rate imposed for the previous fiscal year.
17 24 Implementation of this subsection shall not cause the
17 25 percentage tax rate levied against any type of property
17 26 described in subsections 1 and 2 to exceed the limitations in
17 27 those subsections.
17 28 b. If, for the fiscal year beginning July 1, 2007, the
17 29 corresponding percentage tax rate imposed against each type of
17 30 property described in subsections 1 and 2 exceeds the
17 31 percentage rate limitations in those subsections, a city shall
17 32 reduce its levy over a three=year period in order to meet the
17 33 percentage rate limitation requirements of subsections 1 and
17 34 2.
17 35 Sec. 33. Section 384.6, subsection 1, Code 2005, is
18 1 amended to read as follows:
18 2 1. Accounting for pension and related employee benefit
18 3 funds as provided by the city finance committee. A city may
18 4 make contributions to a retirement system other than the Iowa
18 5 public employees' retirement system for its city manager, or
18 6 city administrator performing the duties of city manager, in
18 7 an annual amount not to exceed the amount that would have been
18 8 contributed by the employer under section 97B.11. If a police
18 9 chief or fire chief has submitted a written request to the
18 10 board of trustees to be exempt from chapter 411, authorized in
18 11 section 411.3, subsection 1, a city shall make contributions
18 12 for the chief, in an amount not to exceed the amount that
18 13 would have been contributed by the city under section 411.8,
18 14 subsection 1, paragraph "a", to the international city
18 15 management association/retirement corporation. A city may
18 16 certify taxes to be levied for a trust and agency fund in the
18 17 amount necessary to meet its obligations, subject to the
18 18 limitation in section 384.1.
18 19 Sec. 34. Section 384.7, Code 2005, is amended to read as
18 20 follows:
18 21 384.7 CAPITAL IMPROVEMENTS FUND.
18 22 A city may establish a capital improvements reserve fund,
18 23 and may certify taxes not to exceed sixty=seven and one=half
18 24 cents per thousand dollars of taxable value each year to be
18 25 levied for the fund, subject to the limitation in section
18 26 384.1, for the purpose of accumulating moneys for the
18 27 financing of specified capital improvements, or carrying out a
18 28 specific capital improvement plan.
18 29 The question of the establishment of a capital improvements
18 30 reserve fund, the time period during which a levy will be made
18 31 for the fund, and the tax rate to be levied for the fund is
18 32 subject to approval by the voters, and may be submitted at any
18 33 city election upon the council's motion, or shall be submitted
18 34 at the next regular city election upon receipt of a valid
18 35 petition as provided in section 362.4.
19 1 If a continuing capital improvements levy is established by
19 2 election, it may be terminated in the same manner, upon the
19 3 council's motion or upon petition. Balances in a capital
19 4 improvements reserve fund are not unencumbered or
19 5 unappropriated funds for the purpose of reducing tax levies.
19 6 Transfers may be made between the capital improvements reserve
19 7 fund, construction funds, and the general fund, as provided in
19 8 rules promulgated by the city finance committee created in
19 9 section 384.13.
19 10 Sec. 35. Section 384.8, Code 2005, is amended to read as
19 11 follows:
19 12 384.8 EMERGENCY FUND.
19 13 A city may establish an emergency fund and may certify
19 14 taxes not to exceed twenty=seven cents per thousand dollars of
19 15 taxable value each year to be levied for the fund, subject to
19 16 the limitation in section 384.1. Transfers may be made from
19 17 the emergency fund to the general fund as provided in rules
19 18 promulgated by the city finance committee created in section
19 19 384.13.
19 20 Sec. 36. NEW SECTION. 384.12A SERVICE CHARGE IN LIEU OF
19 21 PROPERTY TAXES.
19 22 A city may adopt an ordinance imposing a service charge
19 23 against all property located in the city. Service charges are
19 24 due and payable at the same time and in the same manner as
19 25 property taxes are paid. Service charges collected pursuant
19 26 to this section shall be deposited into the city general fund
19 27 for use in funding the service for which the service charge
19 28 was imposed. The maximum percentages of actual value allowed
19 29 to be levied pursuant to section 384.1 shall be adjusted to
19 30 reflect the amount of service charges estimated to be
19 31 collected in a fiscal year.
19 32 Real property subject to a service charge, which property
19 33 is exempt from property taxation, shall be valued and assessed
19 34 as required in section 427.1, subsection 18, and in accordance
19 35 with chapter 441, and the owner or other persons as authorized
20 1 by chapter 441 are entitled to protest any assessment and take
20 2 appeals in the same manner as any taxpayer.
20 3 Sec. 37. Section 384.84, subsection 8, Code 2005, is
20 4 amended to read as follows:
20 5 8. For the purposes of this section, "premises" includes a
20 6 mobile home, modular home, or manufactured home as defined in
20 7 section 435.1, when the mobile home, modular home, or
20 8 manufactured home is taxed as real estate.
20 9 Sec. 38. Section 384.110, Code 2005, is amended to read as
20 10 follows:
20 11 384.110 INSURANCE, SELF=INSURANCE, AND RISK POOLING FUNDS.
20 12 A city may credit funds to a fund or funds for the purposes
20 13 authorized by section 364.4, subsection 5; section 384.12,
20 14 subsection 18; or section 384.24, subsection 3, paragraph "s";
20 15 or to pay the premium costs on tort liability insurance,
20 16 property insurance, and any other insurance that may be
20 17 necessary in the operation of the city, the costs of a self=
20 18 insurance program, the costs of a local government risk pool
20 19 and amounts payable under any insurance agreements to provide
20 20 or procure such insurance, self=insurance program, or local
20 21 government risk pool. Moneys credited to the fund or funds,
20 22 and interest earned on such moneys, shall remain in the fund
20 23 or funds until expended for purposes authorized by section
20 24 364.4, subsection 5; section 384.12, subsection 18; or section
20 25 384.24, subsection 3, paragraph "s"; or for purposes specified
20 26 in this section.
20 27 Sec. 39. Section 414.28A, unnumbered paragraph 2, Code
20 28 2005, is amended to read as follows:
20 29 "Land=leased community" means any site, lot, field, or
20 30 tract of land under common ownership upon which ten or more
20 31 occupied manufactured homes are harbored, either free of
20 32 charge or for revenue purposes, and shall include any
20 33 building, structure, or enclosure used or intended for use as
20 34 part of the equipment of the land=leased community. The term
20 35 "land=leased community" shall not be construed to include
21 1 homes, buildings, or other structures temporarily maintained
21 2 by any individual, educational institution, or company on
21 3 their own premises and used exclusively to house their own
21 4 labor or students. A manufactured home located in a land=
21 5 leased community shall be taxed under section 435.22 as if the
21 6 manufactured home were located in a mobile home park.
21 7 Sec. 40. Section 426B.1, subsection 3, Code 2005, is
21 8 amended to read as follows:
21 9 3. There is annually appropriated from the property tax
21 10 relief fund to the department of human services to supplement
21 11 the medical assistance appropriation for the fiscal year
21 12 beginning July 1, 1997, and for succeeding fiscal years, six
21 13 million six hundred thousand dollars to be used for the
21 14 nonfederal share of the costs of services provided to minors
21 15 with mental retardation under the medical assistance program
21 16 to meet the requirements of section 249A.12, subsection 4.
21 17 The appropriation in this subsection shall be charged to the
21 18 property tax relief fund prior to the distribution of moneys
21 19 from the fund under section 426B.2 and the amount of moneys
21 20 available for distribution shall be reduced accordingly.
21 21 However, the appropriation in this subsection shall be
21 22 considered to be a property tax relief payment for purposes of
21 23 the combined amount of payments required to achieve fifty
21 24 seventy=five percent of the counties' base year expenditures
21 25 as provided in section 426B.2, subsection 2.
21 26 Sec. 41. Section 426B.2, subsection 2, Code 2005, is
21 27 amended to read as follows:
21 28 2. The distributions under subsection 1 shall continue to
21 29 be made until the combined amount of the distributions made
21 30 under subsection 1 are equal to fifty seventy=five percent of
21 31 the total of all counties' base year expenditures as defined
21 32 in section 331.438.
21 33 Sec. 42. Section 427A.1, subsection 1, paragraph c, Code
21 34 2005, is amended to read as follows:
21 35 c. Buildings, structures or improvements, any of which are
22 1 constructed on or in the land, attached to the land, or placed
22 2 upon a foundation whether or not attached to the foundation.
22 3 However, property taxed under chapter 435 shall not be
22 4 assessed and taxed as real property.
22 5 Sec. 43. Section 435.1, subsections 3, 5, and 7, Code
22 6 Supplement 2005, are amended to read as follows:
22 7 3. "Manufactured home" means a factory=built structure
22 8 built under authority of 42 U.S.C. } 5403, that is required by
22 9 federal law to display a seal from the United States
22 10 department of housing and urban development, and was
22 11 constructed on or after June 15, 1976. If a A manufactured
22 12 home is placed in a manufactured home community or a mobile
22 13 home park, the home must be titled and is subject to the
22 14 manufactured or mobile home square foot tax. If a
22 15 manufactured home is placed outside a manufactured home
22 16 community or a mobile home park, the home must be titled and
22 17 is to be assessed and taxed as real estate.
22 18 5. "Mobile home" means any vehicle without motive power
22 19 used or so manufactured or constructed as to permit its being
22 20 used as a conveyance upon the public streets and highways and
22 21 so designed, constructed, or reconstructed as will permit the
22 22 vehicle to be used as a place for human habitation by one or
22 23 more persons; but shall also include any such vehicle with
22 24 motive power not registered as a motor vehicle in Iowa. A
22 25 "mobile home" is not built to a mandatory building code,
22 26 contains no state or federal seals, and was built before June
22 27 15, 1976. If a A mobile home is placed outside a mobile home
22 28 park, the home is to be assessed and taxed as real estate.
22 29 7. "Modular home" means a factory=built structure which is
22 30 manufactured to be used as a place of human habitation, is
22 31 constructed to comply with the Iowa state building code for
22 32 modular factory=built structures, as adopted pursuant to
22 33 section 103A.7, and must display the seal issued by the state
22 34 building code commissioner. If a modular home is placed in a
22 35 manufactured home community or mobile home park, the home is
23 1 subject to the annual tax as required by section 435.22. If a
23 2 A modular home is placed outside a manufactured home community
23 3 or a mobile home park, the home shall be considered real
23 4 property and is to be assessed and taxed as real estate.
23 5 Sec. 44. Section 435.22, Code 2005, is amended by striking
23 6 the section and inserting in lieu thereof the following:
23 7 435.22 ASSESSMENT == CREDITS.
23 8 A mobile home or manufactured home used primarily as a
23 9 residence shall be assessed as improved residential property
23 10 pursuant to section 441.21, subsection 4, and shall be taxed
23 11 an annual ad valorem tax in the same manner as other
23 12 residential property. A mobile home or manufactured home used
23 13 primarily for commercial or industrial purposes shall be
23 14 assessed as improved commercial or industrial property
23 15 pursuant to section 441.21, subsection 5A, and shall be taxed
23 16 an annual ad valorem tax in the same manner as other
23 17 commercial or industrial property. Persons who own a mobile
23 18 home or manufactured home as a homestead and who meet the
23 19 qualifications provided in section 425.2 are eligible for the
23 20 homestead exemption and if they meet the qualifications
23 21 provided in sections 425.17 through 425.37 are eligible for an
23 22 extraordinary property tax exemption. A person who owns a
23 23 mobile home or manufactured home is eligible to apply for the
23 24 military tax exemption as provided in section 426A.11.
23 25 Real estate located in a manufactured home community or a
23 26 mobile home park, as defined in section 435.1, shall be
23 27 assessed and taxed as improved residential property. Real
23 28 estate located in a land=leased community, as defined in
23 29 sections 335.30A and 414.28A, shall be assessed and taxed as
23 30 improved residential property.
23 31 Sec. 45. Section 435.23, Code 2005, is amended to read as
23 32 follows:
23 33 435.23 EXEMPTIONS == PRORATING TAX.
23 34 The manufacturer's and dealer's inventory of mobile homes,
23 35 manufactured homes, or modular homes not in use as a place of
24 1 human habitation shall be exempt from the annual tax. All
24 2 travel trailers shall be exempt from this tax. The homes and
24 3 travel trailers in the inventory of manufacturers and dealers
24 4 shall be exempt from personal property tax. The homes coming
24 5 into Iowa from out of state and located in a manufactured home
24 6 community or mobile home park shall be liable for the tax
24 7 computed pro rata to the nearest whole month, for the time the
24 8 home is actually situated in Iowa.
24 9 Sec. 46. Section 435.24, subsections 1, 2, and 4, Code
24 10 Supplement 2005, are amended to read as follows:
24 11 1. The annual tax is due and payable to the county
24 12 treasurer on or after July 1 in each fiscal year and is
24 13 collectible in the same manner and at the same time as
24 14 ordinary taxes as provided in sections 445.36, 445.37, and
24 15 445.39. Interest at the rate prescribed by law shall accrue
24 16 on unpaid taxes. Both installments of taxes may be paid at
24 17 one time. The September installment represents a tax period
24 18 beginning July 1 and ending December 31. The March
24 19 installment represents a tax period beginning January 1 and
24 20 ending June 30. A mobile home, manufactured home, or modular
24 21 home coming into this state from outside the state, put in use
24 22 from a dealer's inventory, or put in use at any time after
24 23 July 1 or January 1, and located in a manufactured home
24 24 community or mobile home park, is subject to the taxes
24 25 prorated for the remaining unexpired months of the tax period,
24 26 but the purchaser is not required to pay the tax at the time
24 27 of purchase. Interest attaches the following April 1 for
24 28 taxes prorated on or after October 1. Interest attaches the
24 29 following October 1 for taxes prorated on or after April 1.
24 30 Interest at the rate prescribed by law shall accrue on unpaid
24 31 taxes. If the taxes are not paid, the county treasurer shall
24 32 send a statement of delinquent taxes as part of the notice of
24 33 tax sale as provided in section 446.9. The owner of a home
24 34 who sells the home between July 1 and December 31 and obtains
24 35 a tax clearance statement is responsible only for the
25 1 September tax payment and is not required to pay taxes for
25 2 subsequent tax periods. If the owner of a home located in a
25 3 manufactured home community or mobile home park sells the
25 4 home, obtains a tax clearance statement, and obtains a
25 5 replacement home to be located in a manufactured home
25 6 community or mobile home park, the owner shall not pay taxes
25 7 under this chapter for the newly acquired home for the same
25 8 tax period that the owner has paid taxes on the home sold.
25 9 Interest for delinquent taxes shall be calculated to the
25 10 nearest whole dollar. In calculating interest each fraction
25 11 of a month shall be counted as an entire month.
25 12 2. The home owners upon issuance of a certificate of title
25 13 or upon transporting to a new site shall file the address,
25 14 township, and school district, of the location where the home
25 15 is parked with the county treasurer's office. Failure to
25 16 comply is punishable as set out in section 435.18. When the
25 17 new location is outside of a manufactured home community or
25 18 mobile home park, the The county treasurer shall provide to
25 19 the assessor a copy of the tax clearance statement for
25 20 purposes of assessment as real estate on the following January
25 21 1.
25 22 4. The tax is a lien on the vehicle senior to any other
25 23 lien upon it except a judgment obtained in an action to
25 24 dispose of an abandoned home under section 555B.8. The home
25 25 bearing a current registration issued by any other state and
25 26 remaining within this state for an accumulated period not to
25 27 exceed ninety days in any twelve=month period is not subject
25 28 to Iowa tax. However, when one or more persons occupying a
25 29 home bearing a foreign registration are employed in this
25 30 state, there is no exemption from the Iowa tax. This tax is
25 31 in lieu of all other taxes general or local on a home.
25 32 Sec. 47. Section 435.26, subsection 1, paragraph a, Code
25 33 2005, is amended to read as follows:
25 34 a. A mobile home or manufactured home which is located
25 35 outside a manufactured home community or mobile home park
26 1 shall be converted to real estate by being placed on a
26 2 permanent foundation and shall be assessed for real estate
26 3 taxes. A home, after conversion to real estate, is eligible
26 4 for the homestead tax credit and the military service tax
26 5 exemption as provided in sections 425.2 and 426A.11. Such
26 6 mobile home or manufactured home is subject to the
26 7 requirements of this section.
26 8 Sec. 48. Section 435.27, subsection 1, Code 2005, is
26 9 amended to read as follows:
26 10 1. A mobile home or manufactured home converted to real
26 11 estate under section 435.26 may be reconverted to a home as
26 12 provided in this section when it that is moved to a
26 13 manufactured home community or mobile home park or a
26 14 manufactured or mobile home retailer's inventory is subject to
26 15 the requirements of this section. When the home is located
26 16 within a manufactured home community or mobile home park, the
26 17 home shall be taxed pursuant to section 435.22, subsection 1.
26 18 Sec. 49. Section 435.27, subsection 3, Code 2005, is
26 19 amended by striking the subsection.
26 20 Sec. 50. Section 435.28, Code 2005, is amended to read as
26 21 follows:
26 22 435.28 COUNTY TREASURER TO NOTIFY ASSESSOR.
26 23 Upon issuance of a certificate of title to a mobile home or
26 24 manufactured home which is not located in a manufactured home
26 25 community or mobile home park or dealer's inventory, the
26 26 county treasurer shall notify the assessor of the existence of
26 27 the home for tax assessment purposes.
26 28 Sec. 51. Section 435.35, Code 2005, is amended to read as
26 29 follows:
26 30 435.35 EXISTING HOME OUTSIDE OF MANUFACTURED HOME
26 31 COMMUNITY OR MOBILE HOME PARK == EXEMPTION.
26 32 A taxable mobile home or manufactured home which is not
26 33 located in a manufactured home community or mobile home park
26 34 as of January 1, 1995, shall be assessed and taxed as real
26 35 estate. The home is also exempt from the permanent foundation
27 1 requirements of this chapter until the home is relocated.
27 2 Sec. 52. Section 441.16, unnumbered paragraph 7, Code
27 3 2005, is amended to read as follows:
27 4 Any tax for the maintenance of the office of assessor and
27 5 other assessment procedure shall be levied only upon the
27 6 property in the area assessed by said assessor and such tax
27 7 levy shall not exceed forty and one=half cents per thousand
27 8 dollars of assessed value in assessing areas where the
27 9 valuation upon which the tax is levied does not exceed ninety=
27 10 two million, six hundred thousand dollars; thirty=three and
27 11 three=fourths cents per thousand dollars of assessed value in
27 12 assessing areas where the valuation upon which the tax is
27 13 levied exceeds ninety=two million, six hundred thousand
27 14 dollars and does not exceed one hundred eleven million, one
27 15 hundred twenty thousand dollars; twenty=seven cents per
27 16 thousand dollars of assessed value in assessing areas where
27 17 the valuation upon which the tax is levied exceeds one hundred
27 18 eleven million, one hundred twenty thousand dollars is subject
27 19 to the limitation in section 331.423 or 384.1, as applicable.
27 20 The county treasurer shall credit the sums received from such
27 21 levy to a separate fund to be known as the "assessment expense
27 22 fund" and from which fund all expenses incurred under this
27 23 chapter shall be paid. In the case of a county where there is
27 24 more than one assessor the treasurer shall maintain separate
27 25 assessment expense funds for each assessor.
27 26 Sec. 53. Section 441.50, Code 2005, is amended to read as
27 27 follows:
27 28 441.50 APPRAISERS EMPLOYED.
27 29 The conference board shall have power to employ appraisers
27 30 or other technical or expert help to assist in the valuation
27 31 of property, the cost thereof to be paid in the same manner as
27 32 other expenses of the assessor's office. The conference board
27 33 may certify for levy annually an amount not to exceed forty
27 34 and one=half cents per thousand dollars of assessed value of
27 35 taxable property, subject to the limitation in section 331.423
28 1 or 384.1, as applicable, for the purpose of establishing a
28 2 special appraiser's fund, to be used only for such purposes.
28 3 From time to time the conference board may direct the transfer
28 4 of any unexpended balance in the special appraiser's fund to
28 5 the assessment expense fund.
28 6 Sec. 54. NEW SECTION. 444.29 PROPERTY TAX LIMITATION ==
28 7 CONSUMER PRICE INDEX.
28 8 1. Notwithstanding the limitations in sections 331.423 and
28 9 384.1, beginning with the fiscal year beginning July 1, 2011,
28 10 the percentage increase in the amount of property taxes to be
28 11 levied by a city or a county against any class of property for
28 12 a fiscal year cannot exceed the amount computed in this
28 13 section.
28 14 2. The property tax limitation shall be computed as
28 15 follows:
28 16 a. Determine the amount of property taxes levied as a
28 17 percent of taxable value in the current fiscal year.
28 18 b. Determine the sum of the amount of taxable value of
28 19 property for the current fiscal year, and the amount of
28 20 increase in taxable value of property due to new construction,
28 21 additions or improvements to existing structures, expiration
28 22 of tax abatement under chapter 404, and any increase in
28 23 valuation because of reclassification of property.
28 24 c. Multiply the percent calculated in paragraph "a" times
28 25 the amount in paragraph "b".
28 26 d. Multiply the product determined in paragraph "c" times
28 27 the sum of one plus the consumer price index.
28 28 3. a. A city or county may exceed the limitation in this
28 29 section if the purpose of exceeding the limitation is to
28 30 provide additional property tax credits, exemptions, or
28 31 abatements, and if the proposition to exceed the limitation is
28 32 submitted at the regular city election in the case of a city
28 33 or at the general election in the case of a county.
28 34 b. Notice of the election shall be given by publication as
28 35 required by section 49.53.
29 1 c. The proposition of exceeding the limitation is not
29 2 adopted unless the proposition receives a favorable majority
29 3 of the votes cast on the proposition.
29 4 d. If the proposition of exceeding the limitation is
29 5 approved by the voters, the city or county may proceed to
29 6 exceed the limitation for a period not to exceed four years.
29 7 e. In no case shall the percentage rate limitations in
29 8 sections 331.423 and 384.1 be exceeded by operation of this
29 9 subsection.
29 10 4. For purposes of this section, "consumer price index"
29 11 means the percentage rate of change in the consumer price
29 12 index as tabulated by the United States department of labor,
29 13 bureau of labor statistics, for the twelve=month period ending
29 14 June 30 of the previous fiscal year.
29 15 Sec. 55. Section 445.1, subsection 6, Code 2005, is
29 16 amended to read as follows:
29 17 6. "Taxes" means an annual ad valorem tax, a special
29 18 assessment, a drainage tax, and a rate or charge, and taxes on
29 19 homes pursuant to chapter 435 which are collectible by the
29 20 county treasurer.
29 21 Sec. 56. Section 445.39, Code 2005, is amended to read as
29 22 follows:
29 23 445.39 INTEREST ON DELINQUENT TAXES.
29 24 If the first installment of taxes is not paid by the
29 25 delinquent date specified in section 445.37, the installment
29 26 becomes due and draws interest of one and one=half percent per
29 27 month until paid, from the delinquent date following the levy.
29 28 If the last half is not paid by the delinquent date specified
29 29 for it in section 445.37, the same interest shall be charged
29 30 from the date the last half became delinquent. However, after
29 31 April 1 in a fiscal year when late delivery of the tax list
29 32 referred to in chapter 443 results in a delinquency date later
29 33 than October 1 for the first installment, interest on
29 34 delinquent first installments shall accrue as if delivery were
29 35 made on the previous June 30. The interest imposed under this
30 1 section shall be computed to the nearest whole dollar and the
30 2 amount of interest shall not be less than one dollar. In
30 3 calculating interest each fraction of a month shall be counted
30 4 as an entire month. The interest percentage on delinquent
30 5 special assessments and rates or charges is the same as that
30 6 for the first installment of delinquent ad valorem taxes.
30 7 Sec. 57. Section 447.1, unnumbered paragraph 1, Code 2005,
30 8 is amended to read as follows:
30 9 A parcel sold under this chapter and chapter 446 may be
30 10 redeemed at any time before the right of redemption expires,
30 11 by payment to the county treasurer, to be held by the
30 12 treasurer subject to the order of the purchaser, of the amount
30 13 for which the parcel was sold, including the fee for the
30 14 certificate of purchase, and interest of two one and one=half
30 15 percent per month, counting each fraction of a month as an
30 16 entire month, from the month of sale, and the total amount
30 17 paid by the purchaser or the purchaser's assignee for any
30 18 subsequent year, with interest at the same rate added on the
30 19 amount of the payment for each subsequent year from the month
30 20 of payment, counting each fraction of a month as an entire
30 21 month. The amount of interest must be at least one dollar and
30 22 shall be rounded to the nearest whole dollar. Interest shall
30 23 accrue on subsequent amounts from the month of payment by the
30 24 certificate holder.
30 25 Sec. 58. Sections 331.424, 331.424B, 331.425, 331.426,
30 26 384.12, 435.33, and 435.34, Code 2005, are repealed.
30 27 Sec. 59. EFFECTIVE AND APPLICABILITY DATES.
30 28 1. The sections of this division amending sections 445.39
30 29 and 447.1 take effect July 1, 2006, and apply to property
30 30 taxes which become delinquent on or after July 1, 2006, and to
30 31 parcels sold for delinquent taxes on or after July 1, 2006.
30 32 2. The remainder of this division of this Act takes effect
30 33 July 1, 2007, and applies to fiscal years beginning on or
30 34 after July 1, 2008.
30 35 DIVISION II
31 1 ASSESSMENT OF PROPERTY
31 2 Sec. 60. Section 403.20, Code 2005, is amended to read as
31 3 follows:
31 4 403.20 PERCENTAGE OF ADJUSTMENT CONSIDERED IN VALUE
31 5 ASSESSMENT.
31 6 In determining the assessed value of property within an
31 7 urban renewal area which is subject to a division of tax
31 8 revenues pursuant to section 403.19, the difference between
31 9 the actual value of the property as determined by the assessor
31 10 each year and the percentage of adjustment certified for that
31 11 year by the director of revenue on or before November 1
31 12 reductions applied to the property pursuant to section 441.21,
31 13 subsection 9 4, 5, 5A, 5B, or 5C, multiplied by the actual
31 14 value of the property as determined by the assessor, shall be
31 15 subtracted from the actual value of the property as determined
31 16 pursuant to section 403.19, subsection 1. If the assessed
31 17 value of the property as determined pursuant to section
31 18 403.19, subsection 1, is reduced to zero, the additional
31 19 valuation reduction shall be subtracted from the actual value
31 20 of the property as determined by the assessor.
31 21 Sec. 61. Section 433.6, Code 2005, is amended to read as
31 22 follows:
31 23 433.6 TAXABLE VALUE.
31 24 The taxable value shall be determined by taking the
31 25 percentage of the actual value so ascertained, reduced as
31 26 provided by section 441.21, and the ratio between the actual
31 27 value and the assessed or taxable value of the property of
31 28 each of said companies shall be the same as in the case of
31 29 property of private individuals.
31 30 Sec. 62. Section 437.7, Code 2005, is amended to read as
31 31 follows:
31 32 437.7 TAXABLE VALUE.
31 33 The taxable value of such line or lines of which the
31 34 director of revenue by this chapter is required to find the
31 35 value, shall be determined by taking the percentage of the
32 1 actual reduction in value so ascertained, as provided by
32 2 section 441.21, and the ratio between the actual value and the
32 3 assessed or taxable value of the transmission line or lines of
32 4 each of said companies located outside of cities shall be the
32 5 same as in the case of the property of private individuals.
32 6 Sec. 63. Section 441.1, Code 2005, is amended to read as
32 7 follows:
32 8 441.1 OFFICE OF ASSESSOR CREATED.
32 9 In Except as otherwise provided in section 441.16A, in
32 10 every county in the state of Iowa the office of assessor is
32 11 hereby created. A city having a population of ten thousand or
32 12 more, according to the latest federal census, may by ordinance
32 13 provide for the selection of a city assessor and for the
32 14 assessment of property in the city under the provisions of
32 15 this chapter. A city desiring to provide for assessment under
32 16 the provisions of this chapter shall, not less than sixty days
32 17 before the expiration of the term of the assessor in office,
32 18 notify the taxing bodies affected and proceed to establish a
32 19 conference board, examining board, and board of review and
32 20 select an assessor, all as provided in this chapter. A city
32 21 desiring to abolish the office of city assessor shall repeal
32 22 the ordinance establishing the office of city assessor, notify
32 23 the county conference board and the affected taxing districts,
32 24 provide for the transfer of appropriate records and other
32 25 matters, and provide for the abolition of the respective
32 26 boards and the termination of the terms of office of the
32 27 assessor and members of the respective boards. The abolition
32 28 of the city assessor's office shall take effect on July 1
32 29 following notification of the abolition unless otherwise
32 30 agreed to by the affected conference boards. If notification
32 31 of the proposed abolition is made after January 1, sufficient
32 32 funds shall be transferred from the city assessor's budget to
32 33 fund the additional responsibilities transferred to the county
32 34 assessor for the next fiscal year.
32 35 Sec. 64. NEW SECTION. 441.16A COUNTIES JOINING IN
33 1 EMPLOYMENT OF MULTICOUNTY ASSESSOR.
33 2 The conference boards of two or more adjacent counties may
33 3 enter into an agreement to jointly employ a county assessor.
33 4 Such agreement shall be written and entered in their
33 5 respective minutes and a copy of the agreement transmitted to
33 6 the conference board of each county that is a party to the
33 7 agreement. The written agreement shall provide for the manner
33 8 of allocation of the budget of the assessor's office. The
33 9 provisions of chapter 28E shall be applicable to this section,
33 10 except that such agreement shall not be applicable for a
33 11 period of less than six years beginning from the date the
33 12 multicounty assessor is appointed by the conference board.
33 13 A multicounty conference board shall be established as
33 14 provided in section 441.2, with representation from each
33 15 county that is a party to the agreement. The multicounty
33 16 conference board shall appoint one examining board.
33 17 The term of the multicounty assessor shall begin on July 1
33 18 following the date of the agreement and the terms of the
33 19 incumbent assessor in each county that is a party to the
33 20 agreement shall expire on that date, notwithstanding the term
33 21 specified in section 441.8.
33 22 Sec. 65. Section 441.21, subsection 1, paragraph b,
33 23 unnumbered paragraph 1, Code Supplement 2005, is amended to
33 24 read as follows:
33 25 The actual value of all property subject to assessment and
33 26 taxation shall be the fair and reasonable market value of such
33 27 property except as otherwise provided in this section.
33 28 "Market value" is defined as the fair and reasonable exchange
33 29 in the year in which the property is listed and valued between
33 30 a willing buyer and a willing seller, neither being under any
33 31 compulsion to buy or sell and each being familiar with all the
33 32 facts relating to the particular property. Sale prices of the
33 33 property or comparable property in normal transactions
33 34 reflecting market value, and the probable availability or
33 35 unavailability of persons interested in purchasing the
34 1 property, shall be taken into consideration in arriving at its
34 2 market value. In arriving at market value, sale prices of
34 3 property in abnormal transactions not reflecting market value
34 4 shall not be taken into account, or shall be adjusted to
34 5 eliminate the effect of factors which distort market value,
34 6 including but not limited to sales to immediate family of the
34 7 seller, foreclosure or other forced sales, contract sales,
34 8 discounted purchase transactions or purchase of adjoining land
34 9 or other land to be operated as a unit. The sales price of
34 10 property sold at public auction shall not be presumed to be a
34 11 sales price of an abnormal transaction, nor shall a sale at
34 12 public auction be presumed to be a factor which distorts
34 13 market value. The sale price of property sold in the calendar
34 14 year prior to the assessment year shall be presumed to be the
34 15 market value of the property for that assessment year if the
34 16 buyer and seller in such transaction were not immediate family
34 17 members. If the assessment of such property is protested, the
34 18 assessor has the burden of proving by a preponderance of the
34 19 evidence that the market value is other than the sale price.
34 20 Sec. 66. Section 441.21, subsection 1, paragraphs e and f,
34 21 Code Supplement 2005, are amended by striking the paragraphs.
34 22 Sec. 67. Section 441.21, subsection 1, paragraph g, Code
34 23 Supplement 2005, is amended to read as follows:
34 24 g. Notwithstanding any other provision of this section,
34 25 the The actual value of any property shall not exceed its fair
34 26 and reasonable market value, except agricultural property
34 27 which shall be valued exclusively as provided in paragraph "e"
34 28 of this subsection as otherwise provided in this section.
34 29 Sec. 68. Section 441.21, subsection 2, Code Supplement
34 30 2005, is amended by adding the following new unnumbered
34 31 paragraph:
34 32 NEW UNNUMBERED PARAGRAPH. In the event market value of
34 33 newly constructed residential property being assessed cannot
34 34 be readily established because of insufficient comparable
34 35 sales, the assessor shall use the replacement cost method to
35 1 value the property.
35 2 Sec. 69. Section 441.21, subsection 4, Code Supplement
35 3 2005, is amended by striking the subsection and inserting in
35 4 lieu thereof the following:
35 5 4. a. (1) For valuations established for the assessment
35 6 year beginning January 1, 2007, and each year thereafter, the
35 7 actual value at which residential property is assessed shall
35 8 be the sum of the market value for the assessment year and for
35 9 the previous four assessment years, as determined by the
35 10 assessor, divided by five.
35 11 (2) For valuations established for the assessment year
35 12 beginning January 1, 2007, and each year thereafter, the
35 13 actual value at which residential property is assessed shall
35 14 be reduced by fifty percent up to a maximum of twenty thousand
35 15 dollars on each parcel of residential property assessed for
35 16 taxation. The reduction shall be applied to an improved
35 17 parcel only.
35 18 b. (1) For valuations established for the assessment year
35 19 beginning January 1, 2007, and each year thereafter, the
35 20 actual value at which income residential property is assessed
35 21 shall be the sum of the market value for the assessment year
35 22 and for the previous four assessment years, as determined by
35 23 the assessor, divided by five.
35 24 (2) For valuations established for the assessment year
35 25 beginning January 1, 2007, and each year thereafter, the
35 26 actual value at which income residential property is assessed
35 27 shall be reduced by fifty percent up to a maximum of twenty
35 28 thousand dollars on each parcel of income residential property
35 29 assessed for taxation. The reduction shall be applied to an
35 30 improved parcel only. "Income residential property" means
35 31 residential property consisting of three or more separate
35 32 living quarters with at least seventy=five percent of the
35 33 space used for residential purposes.
35 34 Sec. 70. Section 441.21, subsection 5, Code Supplement
35 35 2005, is amended to read as follows:
36 1 5. For valuations established as of January 1, 1979,
36 2 commercial property and industrial property, excluding
36 3 properties referred to in section 427A.1, subsection 7, shall
36 4 be assessed as a percentage of the actual value of each class
36 5 of property. The percentage shall be determined for each
36 6 class of property by the director of revenue for the state in
36 7 accordance with the provisions of this section. For
36 8 valuations established as of January 1, 1979, the percentage
36 9 shall be the quotient of the dividend and divisor as defined
36 10 in this section. The dividend for each class of property
36 11 shall be the total actual valuation for each class of property
36 12 established for 1978, plus six percent of the amount so
36 13 determined. The divisor for each class of property shall be
36 14 the valuation for each class of property established for 1978,
36 15 as reported by the assessors on the abstracts of assessment
36 16 for 1978, plus the amount of value added to the total actual
36 17 value by the revaluation of existing properties in 1979 as
36 18 equalized by the director of revenue pursuant to section
36 19 441.49. For valuations established as of January 1, 1979,
36 20 property valued by the department of revenue pursuant to
36 21 sections 428.24 through 428.29, and chapters 428, 433, 437,
36 22 and 438 shall be considered as one class of property and shall
36 23 be assessed as a percentage of its actual value. The
36 24 percentage shall be determined by the director of revenue in
36 25 accordance with the provisions of this section. For
36 26 valuations established as of January 1, 1979, the percentage
36 27 shall be the quotient of the dividend and divisor as defined
36 28 in this section. The dividend shall be the total actual
36 29 valuation established for 1978 by the department of revenue,
36 30 plus ten percent of the amount so determined. The divisor for
36 31 property valued by the department of revenue pursuant to
36 32 sections 428.24 through 428.29 and chapters 428, 433, 437, and
36 33 438 shall be the valuation established for 1978, plus the
36 34 amount of value added to the total actual value by the
36 35 revaluation of the property by the department of revenue as of
37 1 January 1, 1979. For valuations established as of January 1,
37 2 1980, commercial property and industrial property, excluding
37 3 properties referred to in section 427A.1, subsection 7, shall
37 4 be assessed at a percentage of the actual value of each class
37 5 of property. The percentage shall be determined for each
37 6 class of property by the director of revenue for the state in
37 7 accordance with the provisions of this section. For
37 8 valuations established as of January 1, 1980, the percentage
37 9 shall be the quotient of the dividend and divisor as defined
37 10 in this section. The dividend for each class of property
37 11 shall be the dividend as determined for each class of property
37 12 for valuations established as of January 1, 1979, adjusted by
37 13 the product obtained by multiplying the percentage determined
37 14 for that year by the amount of any additions or deletions to
37 15 actual value, excluding those resulting from the revaluation
37 16 of existing properties, as reported by the assessors on the
37 17 abstracts of assessment for 1979, plus four percent of the
37 18 amount so determined. The divisor for each class of property
37 19 shall be the total actual value of all such property in 1979,
37 20 as equalized by the director of revenue pursuant to section
37 21 441.49, plus the amount of value added to the total actual
37 22 value by the revaluation of existing properties in 1980. The
37 23 director shall utilize information reported on the abstracts
37 24 of assessment submitted pursuant to section 441.45 in
37 25 determining such percentage. For valuations established as of
37 26 January 1, 1980, property valued by the department of revenue
37 27 pursuant to sections 428.24 through 428.29, and chapters 428,
37 28 433, 437, and 438 shall be assessed at a percentage of its
37 29 actual value. The percentage shall be determined by the
37 30 director of revenue in accordance with the provisions of this
37 31 section. For valuations established as of January 1, 1980,
37 32 the percentage shall be the quotient of the dividend and
37 33 divisor as defined in this section. The dividend shall be the
37 34 total actual valuation established for 1979 by the department
37 35 of revenue, plus eight percent of the amount so determined.
38 1 The divisor for property valued by the department of revenue
38 2 pursuant to sections 428.24 through 428.29, and chapters 428,
38 3 433, 437, and 438 shall be the valuation established for 1979,
38 4 plus the amount of value added to the total actual value by
38 5 the revaluation of the property by the department of revenue
38 6 as of January 1, 1980. For valuations established as of
38 7 January 1, 1981, and each year thereafter, the percentage of
38 8 actual value as equalized by the director of revenue as
38 9 provided in section 441.49 at which commercial property and
38 10 industrial property, excluding properties referred to in
38 11 section 427A.1, subsection 7, shall be assessed shall be
38 12 calculated in accordance with the methods provided herein,
38 13 except that any references to six percent in this subsection
38 14 shall be four percent. For valuations established as of
38 15 January 1, 1981, and each year thereafter, the percentage of
38 16 actual value at which property valued by the department of
38 17 revenue pursuant to sections 428.24 through 428.29, and
38 18 chapters 428, 433, 437, and 438 shall be assessed shall be
38 19 calculated in accordance with the methods provided herein in
38 20 this section, except that any references to ten percent in
38 21 this subsection shall be eight percent. Beginning with
38 22 valuations established as of January 1, 1979, and each year
38 23 thereafter, property valued by the department of revenue
38 24 pursuant to chapter 434 shall also be assessed at a percentage
38 25 of its actual value which percentage shall be equal to the
38 26 percentage determined by the director of revenue for
38 27 commercial property, industrial property, or property valued
38 28 by the department of revenue pursuant to sections 428.24
38 29 through 428.29, and chapters 428, 433, 437, and 438, whichever
38 30 is lowest.
38 31 Sec. 71. Section 441.21, Code Supplement 2005, is amended
38 32 by adding the following new subsections:
38 33 NEW SUBSECTION. 5A. a. For valuations established for
38 34 the assessment year beginning January 1, 2007, and each year
38 35 thereafter, the actual value at which commercial property is
39 1 assessed shall be the sum of the market value for the
39 2 assessment year and for the previous four assessment years, as
39 3 determined by the assessor, divided by five.
39 4 b. For valuations established for the assessment year
39 5 beginning January 1, 2007, and each year thereafter, the
39 6 actual value at which industrial property is assessed shall be
39 7 the sum of the market value for the assessment year and for
39 8 the previous four assessment years, as determined by the
39 9 assessor, divided by five.
39 10 c. Notwithstanding subsection 2, an owner of commercial
39 11 property that has a fair market value of less than five
39 12 hundred thousand dollars may notify the assessor that the
39 13 owner elects to have the actual value of the property be
39 14 determined by the assessor using the productive and earning
39 15 capacity of the property as the sole method of appraisal.
39 16 This paragraph does not apply to commercial property described
39 17 in paragraphs "e" and "f" of this subsection. This
39 18 notification must be provided to the assessor by no later than
39 19 March 1 of each assessment year the election is taken. In
39 20 determining the actual value of property under this paragraph,
39 21 the assessor shall not consider any tax credit equity or other
39 22 subsidized financing as income provided to the property or
39 23 property owner.
39 24 d. For valuations established for the assessment year
39 25 beginning January 1, 2007, and each year thereafter, the
39 26 actual value at which commercial property and industrial
39 27 property is assessed shall be reduced by fifty percent up to a
39 28 maximum of twenty=five thousand dollars on each parcel of
39 29 commercial property or industrial property assessed for
39 30 taxation. The reduction shall be applied to an improved
39 31 parcel only.
39 32 e. Commercial property includes agricultural land held for
39 33 development, commercial, or investment purposes.
39 34 f. Commercial property includes a tract of land containing
39 35 an animal feeding operation structure as defined in section
40 1 459.102 if it is not classified as agricultural property under
40 2 subsection 5C.
40 3 NEW SUBSECTION. 5B. a. For valuations established for
40 4 the assessment year beginning January 1, 2007, and each year
40 5 thereafter, the actual value at which agricultural property
40 6 that is not classified as a family farm pursuant to subsection
40 7 5C or as commercial property pursuant to subsection 5A,
40 8 paragraph "e" or "f", is assessed shall be the sum of the
40 9 market value for the assessment year and for the previous four
40 10 assessment years, as determined by the assessor, divided by
40 11 five.
40 12 b. For valuations established for the assessment year
40 13 beginning January 1, 2007, the actual value at which
40 14 agricultural property is assessed shall be reduced by fifty
40 15 percent up to a maximum of sixty=five thousand dollars per
40 16 farm unit.
40 17 c. For purposes of this subsection, "farm unit" means the
40 18 same as defined by the farm services agency of the United
40 19 States department of agriculture. Before assigning assessed
40 20 value per tract of agricultural land, the assessor shall
40 21 establish a per acre assessment for the agricultural property.
40 22 NEW SUBSECTION. 5C. a. For valuations established for
40 23 the assessment year beginning January 1, 2007, and each year
40 24 thereafter, the actual value of agricultural property shall be
40 25 determined on the basis of productivity and net earning
40 26 capacity of the property determined on the basis of its use
40 27 for agricultural purposes capitalized at a rate of seven
40 28 percent and applied uniformly among counties and among classes
40 29 of property, except that increases in actual value are limited
40 30 to four percent. Any formula or method employed to determine
40 31 productivity and net earning capacity of property shall be
40 32 adopted in full by rule. The agricultural property assessed
40 33 under this subsection must be owned by an owner who is
40 34 actively engaged in farming the agricultural land.
40 35 b. In counties or townships in which field work on a
41 1 modern soil survey has been completed since January 1, 1949,
41 2 the assessor shall place emphasis upon the results of the
41 3 survey in spreading the valuation among individual parcels of
41 4 such agricultural property.
41 5 c. For purposes of this subsection:
41 6 (1) "Actively engaged in farming" means that the owner
41 7 inspects the production activities periodically and furnishes
41 8 at least half of the value of the tools and pays at least half
41 9 the direct cost of production; or regularly and frequently
41 10 makes or takes an important part in making management
41 11 decisions substantially contributing to or affecting the
41 12 success of the farm operation; or performs physical work which
41 13 significantly contributes to crop or livestock production.
41 14 However, a lessor, whether under a cash or a crop share lease,
41 15 is not actively engaged in farming on the area of the tract
41 16 covered by the lease. This provision applies to both written
41 17 and oral leases.
41 18 (2) "Eligible tract" means an area of agricultural land
41 19 which is comprised of all of the contiguous tracts under
41 20 identical legal ownership that are located within the same
41 21 county and, in the aggregate, more than half the acres of the
41 22 contiguous tract are devoted to the production of crops or
41 23 livestock by an owner who is actively engaged in farming.
41 24 (3) "Owner" means any of the following:
41 25 (a) An individual who holds the fee simple title to the
41 26 agricultural land.
41 27 (b) An individual who owns the agricultural land under a
41 28 contract of purchase which has been recorded in the office of
41 29 the county recorder of the county in which the agricultural
41 30 land is located.
41 31 (c) An individual who owns the agricultural land under
41 32 devise or by operation of the inheritance laws, where the
41 33 whole interest passes or where the divided interest is shared
41 34 only by individuals related or formerly related to each other
41 35 by blood, marriage, or adoption.
42 1 (d) An individual who owns the agricultural land under a
42 2 deed which conveys a divided interest, where the divided
42 3 interest is shared only by individuals related or formerly
42 4 related to each other by blood, marriage, or adoption.
42 5 (e) A partnership where all partners are related or
42 6 formerly related to each other by blood, marriage, or
42 7 adoption.
42 8 (f) A family farm corporation or authorized farm
42 9 corporation, as both are defined in section 9H.1, which owns
42 10 the agricultural land.
42 11 (4) "Production of crops" includes pastureland.
42 12 Sec. 72. Section 441.21, subsections 9 and 10, Code
42 13 Supplement 2005, are amended to read as follows:
42 14 9. Not later than November 1, 1979 2007, and November 1 of
42 15 each subsequent year, the director shall certify to the county
42 16 auditor of each county the percentages of actual value at
42 17 which residential property, agricultural property, commercial
42 18 property, industrial property, and property valued by the
42 19 department of revenue pursuant to sections 428.24 through
42 20 428.29, and chapters 428, 433, 434, 437, and 438 in each
42 21 assessing jurisdiction in the county shall be assessed for
42 22 taxation. The county auditor shall proceed to determine the
42 23 assessed values of agricultural property, residential
42 24 property, commercial property, industrial property, and
42 25 property valued by the department of revenue pursuant to
42 26 sections 428.24 through 428.29, and chapters 428, 433, 434,
42 27 437, and 438 by applying such percentages to the current
42 28 actual value of such property, as reported to the county
42 29 auditor by the assessor, and the assessed values so determined
42 30 shall be the taxable values of such properties upon which the
42 31 levy shall be made.
42 32 10. The percentage of actual value computed by the
42 33 director for agricultural property, residential property,
42 34 income residential property, commercial property, industrial
42 35 property, and property valued by the department of revenue
43 1 pursuant to sections 428.24 through 428.29, and chapters 428,
43 2 433, 434, 437, and 438 and used to determine assessed values
43 3 of those classes of property does not constitute a rule as
43 4 defined in section 17A.2, subsection 11.
43 5 Sec. 73. Section 441.21, Code Supplement 2005, is amended
43 6 by adding the following new subsection:
43 7 NEW SUBSECTION. 13. a. The reduction amounts in
43 8 subsections 4, 5A, and 5B shall each year be increased for
43 9 inflation. Upon determination of the latest cumulative
43 10 inflation factor, the director of revenue shall multiply each
43 11 dollar amount set forth in subsections 4, 5A, and 5B by this
43 12 cumulative inflation factor, shall round off the resulting
43 13 product to the nearest dollar, and shall transmit the result
43 14 to each city and county assessor for each assessment year.
43 15 b. For purposes of this subsection, "cumulative inflation
43 16 factor" means the product of the annual inflation factor for
43 17 the 2007 calendar year and all annual inflation factors for
43 18 subsequent calendar years as determined pursuant to this
43 19 subsection. The cumulative inflation factor applies to all
43 20 tax years beginning on or after January 1 of the calendar year
43 21 for which the latest annual inflation factor has been
43 22 determined.
43 23 c. In determining the annual inflation factor, the
43 24 department shall use the annual percent change, but not less
43 25 than zero percent, in the gross domestic product price
43 26 deflator computed for the second quarter of the calendar year
43 27 by the bureau of economic analysis of the United States
43 28 department of commerce and shall add all of that percent
43 29 change to one hundred percent. The annual inflation factor
43 30 and the cumulative inflation factor shall each be expressed as
43 31 a percentage rounded to the nearest one=tenth of one percent.
43 32 The annual inflation factor shall not be less than one hundred
43 33 percent.
43 34 d. The annual inflation factor for the 2007 assessment
43 35 year is one hundred percent.
44 1 Sec. 74. Section 441.40, Code 2005, is amended to read as
44 2 follows:
44 3 441.40 COSTS, FEES AND EXPENSES APPORTIONED.
44 4 The clerk of the court shall likewise certify to the county
44 5 treasurer the costs assessed by the court on any appeal from a
44 6 board of review to the district court, in all cases where said
44 7 costs are taxed against the board of review or any taxing
44 8 body. The district court may award payment of the property
44 9 owner's or aggrieved taxpayer's attorney fees as part of the
44 10 costs assessed by the court to be taxed against the board of
44 11 review or any taxing body, unless the court determines that
44 12 the protest was frivolous, and, in that case, the court may
44 13 assess the costs of defending the protest against the owner or
44 14 taxpayer who filed the protest. Thereupon the county
44 15 treasurer shall compute and apportion the said costs between
44 16 the various taxing bodies participating in the proceeds of the
44 17 collection of the taxes involved in any such appeal, and said
44 18 treasurer shall so compute and apportion the various amounts
44 19 which said taxing bodies are required to pay in proportion to
44 20 the amount of taxes each of said taxing bodies is entitled to
44 21 receive from the whole amount of taxes involved in each of
44 22 such appeals. The said county treasurer shall deduct from the
44 23 proceeds of all general taxes collected the amount of costs so
44 24 computed and apportioned by the treasurer from the moneys due
44 25 to each taxing body from general taxes collected. The amount
44 26 so deducted shall be certified to each taxing body in lieu of
44 27 moneys collected. Said county treasurer shall pay to the
44 28 clerk of the district court the amount of said costs so
44 29 computed, apportioned and collected by the treasurer in all
44 30 cases now on file or hereafter filed in which said costs have
44 31 not been paid.
44 32 Sec. 75. Section 441.47, Code 2005, is amended by adding
44 33 the following new unnumbered paragraph:
44 34 NEW UNNUMBERED PARAGRAPH. Each county for which a
44 35 multicounty assessor is appointed pursuant to section 441.16A
45 1 is considered a separate assessing jurisdiction for purposes
45 2 of this section.
45 3 Sec. 76. Section 441.54, Code 2005, is amended to read as
45 4 follows:
45 5 441.54 CONSTRUCTION.
45 6 Whenever in the laws of this state, the words "assessor" or
45 7 "assessors" appear, singly or in combination with other words,
45 8 they shall be deemed to mean and refer to the multicounty,
45 9 county, or city assessor, as the case may be.
45 10 Sec. 77. NEW SECTION. 441.58 CONFIDENTIALITY OF CERTAIN
45 11 INFORMATION REQUIRED == ASSESSOR AND BOARD OF REVIEW.
45 12 The assessor, the board of review, and the assessment
45 13 appeal board shall keep confidential any documents, reports,
45 14 audits, and other information supplied by a taxpayer or
45 15 property owner relating to the amount or source of income,
45 16 profits, losses, or expenditures of the taxpayer or property
45 17 owner, except that such information shall be made available to
45 18 the taxpayer or property owner or that person's counsel and to
45 19 the court in case any appeal is taken.
45 20 Sec. 78. Section 441.72, Code 2005, is amended to read as
45 21 follows:
45 22 441.72 ASSESSMENT OF PLATTED LOTS.
45 23 When a subdivision plat is recorded pursuant to chapter
45 24 354, the individual lots within the subdivision plat shall not
45 25 be assessed in excess of the total assessment of the land as
45 26 acreage or unimproved property for three six years after the
45 27 recording of the plat or until the lot is actually improved
45 28 with permanent construction, whichever occurs first. When an
45 29 individual lot has been improved with permanent construction,
45 30 the lot shall be assessed for taxation purposes as provided in
45 31 chapter 428 and this chapter. This section does not apply to
45 32 special assessment levies.
45 33 Sec. 79. Section 441.73, subsection 4, Code 2005, is
45 34 amended to read as follows:
45 35 4. The executive council shall transfer for the fiscal
46 1 year beginning July 1, 1992, and each fiscal year thereafter,
46 2 from funds established in sections 425.1 and 426.1, an amount
46 3 necessary to pay litigation expenses. The amount of the fund
46 4 for each fiscal year shall not exceed seven hundred thousand
46 5 dollars. The executive council shall determine annually the
46 6 proportionate amounts to be transferred from the two separate
46 7 funds. At any time when no litigation is pending or in
46 8 progress the balance in the litigation expense fund shall not
46 9 exceed one hundred thousand dollars. Any excess moneys shall
46 10 be transferred in a proportionate amount back to the funds
46 11 from which they were originally transferred.
46 12 Sec. 80. Section 443.2, unnumbered paragraph 2, Code 2005,
46 13 is amended to read as follows:
46 14 The county auditor shall list the aggregate actual value
46 15 and the aggregate taxable value of all taxable property within
46 16 the county and each political subdivision including property
46 17 subject to the statewide property tax imposed under section
46 18 437A.18 on the tax list in order that the actual value of the
46 19 taxable property within the county or a political subdivision
46 20 may be ascertained and shown by the tax list for the purpose
46 21 of computing the debt=incurring capacity of the county or
46 22 political subdivision. As used in this section, "actual
46 23 value" is the value determined under section 441.21,
46 24 subsections 1 to 3, prior to the reduction to a percentage of
46 25 in actual value as otherwise provided in section 441.21.
46 26 "Actual value" of property subject to statewide property tax
46 27 is the assessed value under section 437A.18.
46 28 Sec. 81. Chapter 405, Code 2005, is repealed.
46 29 Sec. 82. EFFECTIVE AND APPLICABILITY DATES. Unless
46 30 otherwise stated, this division of this Act takes effect
46 31 January 1, 2007, and applies to assessment years beginning on
46 32 or after that date.
46 33 DIVISION III
46 34 PROPERTY TAX CREDITS AND EXEMPTIONS
46 35 Sec. 83. Section 25B.7, subsection 2, Code 2005, is
47 1 amended by striking the subsection.
47 2 Sec. 84. Section 100.18, subsection 2, paragraph b, Code
47 3 2005, is amended to read as follows:
47 4 b. The rules shall require the installation of smoke
47 5 detectors in existing single=family rental units and multiple=
47 6 unit residential buildings. Existing single=family dwelling
47 7 units shall be equipped with approved smoke detectors. A
47 8 person who files for a homestead credit exemption pursuant to
47 9 chapter 425 shall certify that the single=family dwelling unit
47 10 for which the credit exemption is filed has a smoke detector
47 11 installed in compliance with this section, or that one will be
47 12 installed within thirty days of the date the filing for the
47 13 credit exemption is made. The state fire marshal shall adopt
47 14 rules and establish appropriate procedures to administer this
47 15 subsection.
47 16 Sec. 85. Section 216.12, subsection 5, Code 2005, is
47 17 amended to read as follows:
47 18 5. The rental or leasing of a housing accommodation in a
47 19 building which contains housing accommodations for not more
47 20 than four families living independently of each other, if the
47 21 owner resides in one of the housing accommodations for which
47 22 the owner qualifies for the homestead tax credit exemption
47 23 under section 425.1.
47 24 Sec. 86. Section 331.401, subsection 1, paragraph g, Code
47 25 2005, is amended by striking the paragraph.
47 26 Sec. 87. Section 331.512, subsection 3, Code Supplement
47 27 2005, is amended to read as follows:
47 28 3. Carry out duties relating to the homestead tax credit
47 29 and agricultural land tax credit exemptions and the military
47 30 tax exemption as provided in chapters 425 and 426 426A.
47 31 Sec. 88. Section 331.512, subsection 4, Code Supplement
47 32 2005, is amended by striking the subsection.
47 33 Sec. 89. Section 331.559, subsections 12, 13, and 14, Code
47 34 2005, are amended by striking the subsections.
47 35 Sec. 90. Section 404.3, subsection 1, Code 2005, is
48 1 amended to read as follows:
48 2 1. All qualified real estate assessed as residential
48 3 property is eligible to receive an exemption from taxation
48 4 based on the actual value added by the improvements. The
48 5 exemption is for a period of ten years. The amount of the
48 6 exemption is equal to a percent of the actual value added by
48 7 the improvements, determined as follows: One hundred fifteen
48 8 percent of the value added by the improvements. However, the
48 9 amount of the actual value added by the improvements which
48 10 shall be used to compute the exemption shall not exceed twenty
48 11 thousand dollars and the granting of the exemption shall not
48 12 result in the actual value of the qualified real estate being
48 13 reduced below the actual value on which amount of the
48 14 homestead credit is computed exemption under section 425.1.
48 15 Sec. 91. Section 425.1, Code Supplement 2005, is amended
48 16 by striking the section and inserting in lieu thereof the
48 17 following:
48 18 425.1 HOMESTEAD ASSESSMENT REDUCTION.
48 19 For the assessment year beginning January 1, 2007, and each
48 20 year thereafter, the actual value at which an eligible
48 21 homestead is assessed pursuant to section 441.21, subsection
48 22 4, shall be reduced by five thousand dollars. The reduction
48 23 allowed under this part is in addition to the reduction in
48 24 section 441.21, subsection 4, paragraph "a".
48 25 Sec. 92. Section 425.2, Code 2005, is amended to read as
48 26 follows:
48 27 425.2 QUALIFYING FOR CREDIT EXEMPTION.
48 28 A person who wishes to qualify for the credit exemption
48 29 allowed under this chapter shall obtain the appropriate forms
48 30 for filing for the credit exemption from the assessor. The
48 31 person claiming the credit exemption shall file a verified
48 32 statement and designation of homestead with the assessor for
48 33 the year for which the person is first claiming the credit
48 34 exemption. The claim shall be filed not later than July 1 of
48 35 the year for which the person is claiming the credit
49 1 exemption. A claim filed after July 1 of the year for which
49 2 the person is claiming the credit exemption shall be
49 3 considered as a claim filed for the following year.
49 4 Upon the filing and allowance of the claim, the claim shall
49 5 be allowed on that homestead for successive years without
49 6 further filing as long as the property is legally or equitably
49 7 owned and used as a homestead by that person or that person's
49 8 spouse on July 1 of each of those successive years, and the
49 9 owner of the property being claimed as a homestead declares
49 10 residency in Iowa for purposes of income taxation, and the
49 11 property is occupied by that person or that person's spouse
49 12 for at least six months in each of those calendar years in
49 13 which the fiscal year begins. When the property is sold or
49 14 transferred, the buyer or transferee who wishes to qualify
49 15 shall refile for the credit exemption. However, when the
49 16 property is transferred as part of a distribution made
49 17 pursuant to chapter 598, the transferee who is the spouse
49 18 retaining ownership of the property is not required to refile
49 19 for the credit exemption. Property divided pursuant to
49 20 chapter 598 shall not be modified following the division of
49 21 the property. An owner who ceases to use a property for a
49 22 homestead or intends not to use it as a homestead for at least
49 23 six months in a calendar year shall provide written notice to
49 24 the assessor by July 1 following the date on which the use is
49 25 changed. A person who sells or transfers a homestead or the
49 26 personal representative of a deceased person who had a
49 27 homestead at the time of death, shall provide written notice
49 28 to the assessor that the property is no longer the homestead
49 29 of the former claimant.
49 30 In case the owner of the homestead is in active service in
49 31 the armed forces of this state or of the United States, or is
49 32 sixty=five years of age or older, or is disabled, the
49 33 statement and designation may be signed and delivered by any
49 34 member of the owner's family, by the owner's guardian or
49 35 conservator, or by any other person who may represent the
50 1 owner under power of attorney. If the owner of the homestead
50 2 is married, the spouse may sign and deliver the statement and
50 3 designation. The director of human services or the director's
50 4 designee may make application for the benefits of this chapter
50 5 as the agent for and on behalf of persons receiving assistance
50 6 under chapter 249.
50 7 Any person sixty=five years of age or older or any person
50 8 who is disabled may request, in writing, from the appropriate
50 9 assessor forms for filing for the homestead tax credit
50 10 exemption. Any person sixty=five years of age or older or who
50 11 is disabled may complete the form, which shall include a
50 12 statement of homestead, and mail or return it to the
50 13 appropriate assessor. The signature of the claimant on the
50 14 statement shall be considered the claimant's acknowledgment
50 15 that all statements and facts entered on the form are correct
50 16 to the best of the claimant's knowledge.
50 17 Upon adoption of a resolution by the county board of
50 18 supervisors, any person may request, in writing, from the
50 19 appropriate assessor forms for the filing for the homestead
50 20 tax credit exemption. The person may complete the form, which
50 21 shall include a statement of homestead, and mail or return it
50 22 to the appropriate assessor. The signature of the claimant on
50 23 the statement of homestead shall be considered the claimant's
50 24 acknowledgment that all statements and facts entered on the
50 25 form are correct to the best of the claimant's knowledge.
50 26 Sec. 93. Section 425.3, unnumbered paragraph 4, Code 2005,
50 27 is amended to read as follows:
50 28 The county auditor shall forward the claims to the board of
50 29 supervisors. The board shall allow or disallow the claims.
50 30 If the board disallows a claim, it shall send written notice,
50 31 by mail, to the claimant at the claimant's last known address.
50 32 The notice shall state the reasons for disallowing the claim
50 33 for the credit exemption. The board is not required to send
50 34 notice that a claim is disallowed if the claimant voluntarily
50 35 withdraws the claim.
51 1 Sec. 94. Section 425.6, Code 2005, is amended to read as
51 2 follows:
51 3 425.6 WAIVER BY NEGLECT.
51 4 If a person fails to file a claim or to have a claim on
51 5 file with the assessor for the credits exemption provided in
51 6 this chapter, the person is deemed to have waived the
51 7 homestead credit exemption for the year in which the person
51 8 failed to file the claim or to have a claim on file with the
51 9 assessor.
51 10 Sec. 95. Section 425.7, subsection 3, Code 2005, is
51 11 amended to read as follows:
51 12 3. If the director of revenue determines that a claim for
51 13 the homestead credit exemption has been allowed by the board
51 14 of supervisors which is not justifiable under the law and not
51 15 substantiated by proper facts, the director may, at any time
51 16 within thirty=six months from July 1 of the year in which the
51 17 claim is allowed, set aside the allowance. Notice of the
51 18 disallowance shall be given to the county auditor of the
51 19 county in which the claim has been improperly granted and a
51 20 written notice of the disallowance shall also be addressed to
51 21 the claimant at the claimant's last known address. The
51 22 claimant or board of supervisors may appeal to the state board
51 23 of tax review pursuant to section 421.1, subsection 4. The
51 24 claimant or the board of supervisors may seek judicial review
51 25 of the action of the state board of tax review in accordance
51 26 with chapter 17A.
51 27 If a claim is disallowed by the director of revenue and not
51 28 appealed to the state board of tax review or appealed to the
51 29 state board of tax review and thereafter upheld upon final
51 30 resolution, including any judicial review, any amounts of
51 31 credits allowed and paid from the homestead credit fund
51 32 including the penalty, if any, the taxes that would have been
51 33 due on the disallowed claim, if not otherwise paid, shall
51 34 become a lien upon the property on which credit the exemption
51 35 was originally granted, if still in the hands of the claimant,
52 1 and not in the hands of a bona fide purchaser, and any amount
52 2 so erroneously of such taxes not paid including the penalty,
52 3 if any, shall be collected by the county treasurer in the same
52 4 manner as other taxes and the collections shall be returned to
52 5 the department of revenue and credited to the homestead credit
52 6 fund. The director of revenue may institute legal proceedings
52 7 against a homestead credit claimant for the collection of
52 8 payments made on disallowed credits and the penalty, if any.
52 9 If a person makes a false claim or affidavit with fraudulent
52 10 intent to obtain the homestead credit exemption, the person is
52 11 guilty of a fraudulent practice and the claim shall be
52 12 disallowed in full. If the credit has been paid, the amount
52 13 of the credit plus a penalty equal to twenty=five percent of
52 14 the amount of credit plus interest, at the rate in effect
52 15 under section 421.7, from the time of payment shall be
52 16 collected by the county treasurer in the same manner as other
52 17 property taxes, penalty, and interest are collected and when
52 18 collected shall be paid to the director of revenue. If a
52 19 homestead credit exemption is disallowed and the claimant
52 20 failed to give written notice to the assessor as required by
52 21 section 425.2 when the property ceased to be used as a
52 22 homestead by the claimant, a civil penalty equal to five
52 23 percent of the amount of the taxes that would have been due on
52 24 the disallowed credit exemption is assessed against the
52 25 claimant.
52 26 Sec. 96. Section 425.8, unnumbered paragraph 1, Code 2005,
52 27 is amended to read as follows:
52 28 The director of revenue shall prescribe the form for the
52 29 making of verified statement and designation of homestead, the
52 30 form for the supporting affidavits required herein, and such
52 31 other forms as may be necessary for the proper administration
52 32 of this chapter. Whenever necessary, the department of
52 33 revenue shall forward to the county auditors of the several
52 34 counties in the state the prescribed sample forms, and the
52 35 county auditors shall furnish blank forms prepared in
53 1 accordance therewith with the assessment rolls, books, and
53 2 supplies delivered to the assessors. The department of
53 3 revenue shall prescribe and the county auditors shall provide
53 4 on the forms for claiming the homestead credit exemption a
53 5 statement to the effect that the owner realizes that the owner
53 6 must give written notice to the assessor when the owner
53 7 changes the use of the property.
53 8 Sec. 97. Section 425.9, Code 2005, is amended by striking
53 9 the section and inserting in lieu thereof the following:
53 10 425.9 EXEMPTION == APPEAL == CREDIT.
53 11 If any claim for exemption made under this chapter has been
53 12 denied by the board of supervisors, and such action is
53 13 subsequently reversed on appeal, the exemption shall be
53 14 allowed on the homestead involved in the appeal, and the
53 15 director of revenue, the county auditor, and the county
53 16 treasurer shall change their books and records accordingly.
53 17 If the tax has been levied on the exemption amount of the
53 18 homestead of the appealing taxpayer or the appealing taxpayer
53 19 has paid one or both of the installments of the tax payable in
53 20 the year or years in question on such homestead valuation, a
53 21 credit for such taxes shall be applied to the property if
53 22 still in the hands of the claimant.
53 23 Sec. 98. Section 425.10, Code 2005, is amended to read as
53 24 follows:
53 25 425.10 REVERSAL OF ALLOWED CLAIM.
53 26 In the event any claim is allowed, and subsequently
53 27 reversed on appeal, any credit exemption made thereunder shall
53 28 be void, and the amount of such credit the taxes that would
53 29 have been due on the exemption shall be charged against the
53 30 property in question, and the director of revenue, the county
53 31 auditor, and the county treasurer are authorized and directed
53 32 to correct their books and records accordingly. The amount of
53 33 such taxes due on the erroneous credit exemption, when
53 34 collected, shall be returned distributed by the county
53 35 treasurer to the homestead credit fund to be reallocated the
54 1 following year as provided herein other jurisdictions in the
54 2 same proportion as the other taxes.
54 3 Sec. 99. Section 425.11, subsection 3, paragraph a,
54 4 unnumbered paragraph 1, Code Supplement 2005, is amended to
54 5 read as follows:
54 6 The homestead includes the dwelling house which the owner,
54 7 in good faith, is occupying as a home on July 1 of the year
54 8 for which the credit exemption is claimed and occupies as a
54 9 home for at least six months during the calendar year in which
54 10 the fiscal year begins, except as otherwise provided.
54 11 Sec. 100. Section 425.11, subsection 3, paragraph c, Code
54 12 Supplement 2005, is amended to read as follows:
54 13 c. It must not embrace more than one dwelling house, but
54 14 where a homestead has more than one dwelling house situated
54 15 thereon, the credit exemption provided for in this chapter
54 16 shall apply to the home and buildings used by the owner, but
54 17 shall not apply to any other dwelling house and buildings
54 18 appurtenant.
54 19 Sec. 101. Section 425.11, subsection 4, unnumbered
54 20 paragraph 1, Code Supplement 2005, is amended to read as
54 21 follows:
54 22 The word "owner" shall mean the person who holds the fee
54 23 simple title to the homestead, and in addition shall mean the
54 24 person occupying as a surviving spouse or the person occupying
54 25 under a contract of purchase which contract has been recorded
54 26 in the office of the county recorder of the county in which
54 27 the property is located, or the person occupying the homestead
54 28 under devise or by operation of the inheritance laws where the
54 29 whole interest passes or where the divided interest is shared
54 30 only by persons related or formerly related to each other by
54 31 blood, marriage or adoption, or the person occupying the
54 32 homestead is a shareholder of a family farm corporation that
54 33 owns the property, or the person occupying the homestead under
54 34 a deed which conveys a divided interest where the divided
54 35 interest is shared only by persons related or formerly related
55 1 to each other by blood, marriage or adoption or where the
55 2 person occupying the homestead holds a life estate with the
55 3 reversion interest held by a nonprofit corporation organized
55 4 under chapter 504, provided that the holder of the life estate
55 5 is liable for and pays property tax on the homestead or where
55 6 the person occupying the homestead holds an interest in a
55 7 horizontal property regime under chapter 499B, regardless of
55 8 whether the underlying land committed to the horizontal
55 9 property regime is in fee or as a leasehold interest, provided
55 10 that the holder of the interest in the horizontal property
55 11 regime is liable for and pays property tax on the homestead.
55 12 For the purpose of this chapter the word "owner" shall be
55 13 construed to mean a bona fide owner and not one for the
55 14 purpose only of availing the person of the benefits of this
55 15 chapter. In order to qualify for the homestead tax credit
55 16 exemption, evidence of ownership shall be on file in the
55 17 office of the clerk of the district court or recorded in the
55 18 office of the county recorder at the time the owner files with
55 19 the assessor a verified statement of the homestead claimed by
55 20 the owner as provided in section 425.2.
55 21 Sec. 102. Section 425.12, Code 2005, is amended to read as
55 22 follows:
55 23 425.12 INDIAN LAND.
55 24 Each forty acres of land, or fraction thereof, occupied by
55 25 a member or members of the Sac and Fox Indians in Tama county,
55 26 which land is held in trust by the secretary of the interior
55 27 of the United States for said Indians, shall be given a
55 28 homestead tax credit exemption within the meaning and under
55 29 the provisions of this chapter. Application for such
55 30 homestead tax credit exemption shall be made to the county
55 31 auditor of Tama county and may be made by a representative of
55 32 the tribal council.
55 33 Sec. 103. Section 425.13, Code 2005, is amended to read as
55 34 follows:
55 35 425.13 CONSPIRACY TO DEFRAUD.
56 1 If any two or more persons conspire and confederate
56 2 together with fraudulent intent to obtain the credit exemption
56 3 provided for under the terms of this chapter by making a false
56 4 deed, or a false contract of purchase, they are guilty of a
56 5 fraudulent practice.
56 6 Sec. 104. Section 425.15, Code 2005, is amended to read as
56 7 follows:
56 8 425.15 DISABLED VETERAN TAX CREDIT EXEMPTION.
56 9 If the owner of a homestead allowed a credit an exemption
56 10 under this chapter is a veteran of any of the military forces
56 11 of the United States, who acquired the homestead under 38
56 12 U.S.C. } 21.801, 21.802, or 38 U.S.C. } 2101, 2102, the credit
56 13 exemption allowed on the homestead from the homestead credit
56 14 fund shall be the entire amount of the tax levied assessed
56 15 value on the homestead. The credit exemption allowed shall be
56 16 continued to the estate of a veteran who is deceased or the
56 17 surviving spouse and any child, as defined in section 234.1,
56 18 who are the beneficiaries of a deceased veteran, so long as
56 19 the surviving spouse remains unmarried. This section is not
56 20 applicable to the holder of title to any homestead whose
56 21 annual income, together with that of the titleholder's spouse,
56 22 if any, for the last preceding twelve=month income tax
56 23 accounting period exceeds thirty=five thousand dollars. For
56 24 the purpose of this section "income" means taxable income for
56 25 federal income tax purposes plus income from securities of
56 26 state and other political subdivisions exempt from federal
56 27 income tax. A veteran or a beneficiary of a veteran who
56 28 elects to secure the credit exemption provided in this section
56 29 is not eligible for any other real property tax exemption
56 30 provided by law for veterans of military service. If a
56 31 veteran acquires a different homestead, the credit exemption
56 32 allowed under this section may be claimed on the new homestead
56 33 unless the veteran fails to meet the other requirements of
56 34 this section.
56 35 Sec. 105. Section 425.16, Code 2005, is amended to read as
57 1 follows:
57 2 425.16 ADDITIONAL TAX CREDIT EXEMPTION.
57 3 In addition to the homestead tax credit exemption allowed
57 4 under section 425.1, subsections 1 to 4, persons who own or
57 5 rent their homesteads and who meet the qualifications provided
57 6 in this division are eligible for an extraordinary property
57 7 tax credit or reimbursement exemption.
57 8 For the assessment year beginning January 1, 2007, and each
57 9 year thereafter, the actual value at which an eligible
57 10 homestead under this part is assessed pursuant to section
57 11 441.21 shall be reduced by two thousand five hundred dollars.
57 12 The reduction allowed under this division is in addition to
57 13 the reduction in section 425.1 and section 441.21, subsection
57 14 4, paragraph "a".
57 15 Sec. 106. Section 425.17, subsection 2, Code 2005, is
57 16 amended to read as follows:
57 17 2. "Claimant" means either of the following:
57 18 a. A person filing a claim for credit or reimbursement
57 19 exemption under this division who has attained the age of
57 20 sixty=five years on or before December 31 of the base year or
57 21 who is totally disabled and was totally disabled on or before
57 22 December 31 of the base year and is domiciled in this state at
57 23 the time the claim is filed or at the time of the person's
57 24 death in the case of a claim filed by the executor or
57 25 administrator of the claimant's estate and whose income in the
57 26 base year was less than sixteen thousand five hundred dollars.
57 27 b. A person filing a claim for credit or reimbursement
57 28 exemption under this division who has attained the age of
57 29 twenty=three years on or before December 31 of the base year
57 30 or was a head of household on December 31 of the base year, as
57 31 defined in the Internal Revenue Code, but has not attained the
57 32 age or disability status described in paragraph "a", and is
57 33 domiciled in this state at the time the claim is filed or at
57 34 the time of the person's death in the case of a claim filed by
57 35 the executor or administrator of the claimant's estate, and
58 1 was not claimed as a dependent on any other person's tax
58 2 return for the base year and whose income in the base year was
58 3 less than sixteen thousand five hundred dollars.
58 4 "Claimant" under paragraph "a" or "b" includes a vendee in
58 5 possession under a contract for deed and may include one or
58 6 more joint tenants or tenants in common. In the case of a
58 7 claim for rent constituting property taxes paid, the claimant
58 8 shall have rented the property during any part of the base
58 9 year. In the case of a claim for property taxes due, the The
58 10 claimant shall have occupied the property during any part of
58 11 the fiscal year beginning July 1 of the base year. If a
58 12 homestead is occupied by two or more persons, and more than
58 13 one person is able to qualify as a claimant, the persons may
58 14 each file a claim based upon each person's income and rent
58 15 constituting property taxes paid or property taxes due.
58 16 Sec. 107. Section 425.17, subsection 3, Code 2005, is
58 17 amended by striking the subsection.
58 18 Sec. 108. Section 425.17, subsection 4, Code 2005, is
58 19 amended to read as follows:
58 20 4. "Homestead" means the dwelling owned or rented and
58 21 actually used as a home by the claimant during the period
58 22 specified in subsection 2, and so much of the land surrounding
58 23 it including one or more contiguous lots or tracts of land, as
58 24 is reasonably necessary for use of the dwelling as a home, and
58 25 may consist of a part of a multidwelling or multipurpose
58 26 building and a part of the land upon which it is built. It
58 27 does not include personal property except that a manufactured
58 28 or mobile home may be a homestead. Any dwelling or a part of
58 29 a multidwelling or multipurpose building which is exempt from
58 30 taxation does not qualify as a homestead under this division.
58 31 However, solely for purposes of claimants living in a property
58 32 and receiving reimbursement for rent constituting property
58 33 taxes paid immediately before the property becomes tax exempt,
58 34 and continuing to live in it after it becomes tax exempt, the
58 35 property shall continue to be classified as a homestead. A
59 1 homestead must be located in this state. When a person is
59 2 confined in a nursing home, extended=care facility, or
59 3 hospital, the person shall be considered as occupying or
59 4 living in the person's homestead if the person is the owner of
59 5 the homestead and the person maintains the homestead and does
59 6 not lease, rent, or otherwise receive profits from other
59 7 persons for the use of the homestead.
59 8 Sec. 109. Section 425.17, subsections 8 and 9, Code 2005,
59 9 are amended by striking the subsections.
59 10 Sec. 110. Section 425.18, Code 2005, is amended to read as
59 11 follows:
59 12 425.18 RIGHT TO FILE A CLAIM.
59 13 The right to file a claim for reimbursement or credit
59 14 exemption under this division may be exercised by the claimant
59 15 or on behalf of a claimant by the claimant's legal guardian,
59 16 spouse, or attorney, or by the executor or administrator of
59 17 the claimant's estate. If a claimant dies after having filed
59 18 a claim for reimbursement for rent constituting property taxes
59 19 paid, the amount of the reimbursement may be paid to another
59 20 member of the household as determined by the director. If the
59 21 claimant was the only member of the household, the
59 22 reimbursement may be paid to the claimant's executor or
59 23 administrator, but if neither is appointed and qualified
59 24 within one year from the date of the filing of the claim, the
59 25 reimbursement shall escheat to the state. If a claimant dies
59 26 after having filed a claim for credit for property taxes due
59 27 exemption, the amount of credit the exemption shall be paid
59 28 allowed as if the claimant had not died.
59 29 Sec. 111. Section 425.19, Code 2005, is amended to read as
59 30 follows:
59 31 425.19 CLAIM AND CREDIT OR REIMBURSEMENT EXEMPTION.
59 32 Subject to the limitations provided in this division, a
59 33 claimant may annually claim a credit for property taxes due an
59 34 exemption during the fiscal year next following the base year
59 35 or claim a reimbursement for rent constituting property taxes
60 1 paid in the base year. The amount of the credit for property
60 2 taxes due for a homestead shall be paid on June 15 of each
60 3 year by the director to the county treasurer who shall credit
60 4 the money received against the amount of the property taxes
60 5 due and payable on the homestead of the claimant and the
60 6 amount of the reimbursement for rent constituting property
60 7 taxes paid shall be paid to the claimant from the state
60 8 general fund on or before December 31 of each year.
60 9 Sec. 112. Section 425.20, unnumbered paragraph 1, Code
60 10 2005, is amended by striking the unnumbered paragraph.
60 11 Sec. 113. Section 425.20, unnumbered paragraphs 2 and 3,
60 12 Code 2005, are amended to read as follows:
60 13 A claim for credit for property taxes due exemption shall
60 14 not be paid or allowed unless the claim is filed with the
60 15 county treasurer between January 1 and June 1, both dates
60 16 inclusive, immediately preceding the fiscal year during which
60 17 the property taxes are due. However, in case of sickness,
60 18 absence, or other disability of the claimant, or if in the
60 19 judgment of the county treasurer good cause exists, the county
60 20 treasurer may extend the time for filing a claim for credit
60 21 exemption through September 30 of the same calendar year. The
60 22 county treasurer shall certify to the director of revenue on
60 23 or before May 1 of each year the total amount of dollars due
60 24 for claims allowed.
60 25 In case of sickness, absence, or other disability of the
60 26 claimant or if, in the judgment of the director of revenue,
60 27 good cause exists and the claimant requests an extension, the
60 28 director may extend the time for filing a claim for
60 29 reimbursement or credit exemption. However, any further time
60 30 granted shall not extend beyond December 31 of the year
60 31 following the year in which the claim was required to be
60 32 filed. Claims filed as a result of this paragraph shall be
60 33 filed with the director who shall provide for the
60 34 reimbursement of the claim to the claimant.
60 35 Sec. 114. Section 425.22, Code 2005, is amended to read as
61 1 follows:
61 2 425.22 ONE CLAIMANT PER HOUSEHOLD.
61 3 Only one claimant per household per year shall be entitled
61 4 to reimbursement under this division and only one claimant per
61 5 household per fiscal year shall be entitled to a credit an
61 6 exemption under this division.
61 7 Sec. 115. Section 425.23, Code 2005, is amended by
61 8 striking the section and inserting in lieu thereof the
61 9 following:
61 10 425.23 ANNUAL ADJUSTMENT TO INCOME.
61 11 1. For the base year beginning in the 2007 calendar year
61 12 and for each subsequent base year, the dollar amounts set
61 13 forth in section 425.17, subsection 2, shall be multiplied by
61 14 the cumulative adjustment factor for that base year.
61 15 "Cumulative adjustment factor" means the product of the annual
61 16 adjustment factor for the 2006 base year and all annual
61 17 adjustment factors for subsequent base years. The cumulative
61 18 adjustment factor applies to the base year beginning in the
61 19 calendar year for which the latest annual adjustment factor
61 20 has been determined.
61 21 2. The annual adjustment factor for the 2006 base year is
61 22 one hundred percent. For each subsequent base year, the
61 23 annual adjustment factor equals the annual inflation factor
61 24 for the calendar year, in which the base year begins, as
61 25 computed in section 422.4 for purposes of the individual
61 26 income tax.
61 27 Sec. 116. Section 425.26, subsections 2 and 3, Code 2005,
61 28 are amended by striking the subsections.
61 29 Sec. 117. Section 425.27, Code 2005, is amended to read as
61 30 follows:
61 31 425.27 AUDIT == RECALCULATION OR DENIAL.
61 32 If on the audit of a claim for credit or reimbursement
61 33 exemption under this division, the director determines the
61 34 amount of the claim to have been incorrectly calculated or
61 35 that the claim is not allowable, the director shall
62 1 recalculate the claim and notify the claimant of the
62 2 recalculation or denial and the reasons for it. The director
62 3 shall not adjust a claim after three years from October 31 of
62 4 the year in which the claim was filed. If the claim for
62 5 reimbursement has been paid, the amount may be recovered by
62 6 assessment in the same manner that income taxes are assessed
62 7 under sections 422.26 and 422.30. If the claim for credit
62 8 exemption has been paid allowed, the director shall give
62 9 notification to the claimant and the county treasurer of the
62 10 recalculation or denial of the claim and the county treasurer
62 11 shall proceed to collect the tax owed in the same manner as
62 12 other property taxes due and payable are collected, if the
62 13 property on which the credit exemption was granted is still
62 14 owned by the claimant, and repay the amount to the director
62 15 upon collection. If the property on which the credit
62 16 exemption was granted is not owned by the claimant, the amount
62 17 may be recovered from the claimant by assessment in the same
62 18 manner that income taxes are assessed under sections 422.26
62 19 and 422.30. The recalculation of the claim property taxes due
62 20 shall be final unless appealed as provided in section 425.31.
62 21 Section 422.70 is applicable with respect to this division.
62 22 Sec. 118. Section 425.28, unnumbered paragraph 2, Code
62 23 2005, is amended to read as follows:
62 24 The department of revenue may release information
62 25 pertaining to a person's eligibility or claim for or receipt
62 26 of rent reimbursement to an employee of the department of
62 27 inspections and appeals in the employee's official conduct of
62 28 an audit or investigation.
62 29 Sec. 119. Section 425.29, Code 2005, is amended to read as
62 30 follows:
62 31 425.29 FALSE CLAIM == PENALTY.
62 32 A person who makes a false affidavit for the purpose of
62 33 obtaining credit or reimbursement an exemption provided for in
62 34 this division or who knowingly receives the credit or
62 35 reimbursement exemption without being legally entitled to it
63 1 or makes claim for the credit or reimbursement exemption in
63 2 more than one county in the state without being legally
63 3 entitled to it is guilty of a fraudulent practice. The claim
63 4 for credit or reimbursement exemption shall be disallowed in
63 5 full and if the claim reduction in value has been paid made,
63 6 the amount of the exemption credited as taxes shall be
63 7 recovered in the manner provided in section 425.27. The
63 8 director of revenue shall send a notice of disallowance of the
63 9 claim.
63 10 Sec. 120. Section 425.32, Code 2005, is amended to read as
63 11 follows:
63 12 425.32 DISALLOWANCE OF CERTAIN CLAIMS.
63 13 A claim for credit exemption shall be disallowed if the
63 14 department finds that the claimant or a person of the
63 15 claimant's household received title to the homestead
63 16 primarily for the purpose of receiving benefits under this
63 17 division.
63 18 Sec. 121. Section 426A.6, Code 2005, is amended to read as
63 19 follows:
63 20 426A.6 SETTING ASIDE ALLOWANCE.
63 21 If the director of revenue determines that a claim for
63 22 military service tax exemption has been allowed by a board of
63 23 supervisors which is not justifiable under the law and not
63 24 substantiated by proper facts, the director may, at any time
63 25 within thirty=six months from July 1 of the year in which the
63 26 claim is allowed, set aside the allowance. Notice of the
63 27 disallowance shall be given to the county auditor of the
63 28 county in which the claim has been improperly granted and a
63 29 written notice of the disallowance shall also be addressed to
63 30 the claimant at the claimant's last known address. The
63 31 claimant or the board of supervisors may appeal to the state
63 32 board of tax review pursuant to section 421.1, subsection 4.
63 33 The claimant or the board of supervisors may seek judicial
63 34 review of the action of the state board of tax review in
63 35 accordance with chapter 17A. If a claim is disallowed by the
64 1 director of revenue and not appealed to the state board of tax
64 2 review or appealed to the state board of tax review and
64 3 thereafter upheld upon final resolution, including judicial
64 4 review, the credits allowed and paid from the general fund of
64 5 the state taxes that would have been due on the disallowed
64 6 claim, if not otherwise paid, shall become a lien upon the
64 7 property on which the credit exemption was originally granted,
64 8 if still in the hands of the claimant and not in the hands of
64 9 a bona fide purchaser, and the amount so erroneously of such
64 10 taxes not paid shall be collected by the county treasurer in
64 11 the same manner as other taxes, and the collections shall be
64 12 returned to the department of revenue and credited to the
64 13 general fund of the state. The director of revenue county
64 14 attorney may institute legal proceedings against a military
64 15 service tax exemption claimant for the collection of payments
64 16 made on disallowed exemptions.
64 17 Sec. 122. Section 426A.8, Code 2005, is amended by
64 18 striking the section and inserting in lieu thereof the
64 19 following:
64 20 426A.8 APPEALS.
64 21 If any claim for exemption made has been denied by the
64 22 board of supervisors, and the action is subsequently reversed
64 23 on appeal, the exemption shall be allowed on the assessed
64 24 valuation, and the county auditor and the county treasurer
64 25 shall change their books and records accordingly.
64 26 If the appealing taxpayer has paid one or both of the
64 27 installments of the tax payable in the year or years in
64 28 question on such military service tax exemption valuation, a
64 29 credit for such taxes shall be applied to the property if
64 30 still in the hands of the claimant.
64 31 Sec. 123. Section 426A.9, Code 2005, is amended to read as
64 32 follows:
64 33 426A.9 ERRONEOUS CREDITS EXEMPTIONS.
64 34 If any claim is allowed, and subsequently reversed on
64 35 appeal, any credit exemption shall be void, and the amount of
65 1 the credit taxes that would have been due on the exemption
65 2 shall be charged against the property in question, and the
65 3 director of revenue, the county auditor and the county
65 4 treasurer shall correct their books and records. The amount
65 5 of taxes due on the erroneous credit exemption, when
65 6 collected, shall be returned distributed by the county
65 7 treasurer to the general fund of the state other jurisdictions
65 8 in the same proportion as the other taxes.
65 9 Sec. 124. Section 426A.11, subsection 2, Code Supplement
65 10 2005, is amended to read as follows:
65 11 2. The property, not to exceed one two thousand eight
65 12 hundred fifty=two dollars in taxable value of an honorably
65 13 separated, retired, furloughed to a reserve, placed on
65 14 inactive status, or discharged veteran, as defined in section
65 15 35.1.
65 16 Sec. 125. Section 427.1, subsection 19, unnumbered
65 17 paragraph 3, Code Supplement 2005, is amended to read as
65 18 follows:
65 19 This exemption shall be limited to the market value, as
65 20 defined in section 441.21, of the pollution=control or
65 21 recycling property. If the pollution=control or recycling
65 22 property is assessed with other property as a unit, this
65 23 exemption shall be limited to the net market value added by
65 24 the pollution=control or recycling property, determined as of
65 25 the assessment date. However, for pollution=control
65 26 exemptions on file as of July 1, 2007, or first applied for on
65 27 or after July 1, 2007, the exemption is limited to one hundred
65 28 thousand dollars of market value.
65 29 Sec. 126. Section 427.9, Code 2005, is amended to read as
65 30 follows:
65 31 427.9 SUSPENSION OF TAXES, ASSESSMENTS, AND RATES OR
65 32 CHARGES, INCLUDING INTEREST, FEES, AND COSTS.
65 33 If a person is a recipient of federal supplementary
65 34 security income or state supplementary assistance, as defined
65 35 in section 249.1, or is a resident of a health care facility,
66 1 as defined by section 135C.1, which is receiving payment from
66 2 the department of human services for the person's care, the
66 3 person shall be deemed to be unable to contribute to the
66 4 public revenue. The director of human services shall notify a
66 5 person receiving such assistance of the tax suspension
66 6 provision and shall provide the person with evidence to
66 7 present to the appropriate county board of supervisors which
66 8 shows the person's eligibility for tax suspension on parcels
66 9 owned, possessed, or upon which the person is paying taxes as
66 10 a purchaser under contract. The board of supervisors so
66 11 notified, without the filing of a petition and statement as
66 12 specified in section 427.8, shall order the county treasurer
66 13 to suspend the collection of all the taxes, special
66 14 assessments, and rates or charges, including interest, fees,
66 15 and costs, assessed against the parcels and remaining unpaid
66 16 by the person or contractually payable by the person, for such
66 17 time as the person remains the owner or contractually
66 18 prospective owner of the parcels, and during the period the
66 19 person receives assistance as described in this section. The
66 20 county board of supervisors shall annually send to the
66 21 department of human services the names and social security
66 22 numbers of persons receiving a tax suspension pursuant to this
66 23 section. The department shall verify the continued
66 24 eligibility for tax suspension of each name on the list and
66 25 shall return the list to the board of supervisors. The
66 26 director of human services shall advise the person that the
66 27 person may apply for an additional property tax credit
66 28 pursuant to sections 425.16 to 425.39 through 425.37 which
66 29 shall be credited against the amount of the taxes suspended.
66 30 Sec. 127. Section 427C.12, unnumbered paragraph 2, Code
66 31 2005, is amended to read as follows:
66 32 The board of supervisors shall designate the county
66 33 conservation board or the assessor who shall inspect the area
66 34 for which an application is filed for a fruit=tree or forest
66 35 reservation tax exemption before the application is accepted.
67 1 Use of aerial photographs may be substituted for on=site
67 2 inspection when appropriate. The application can only be
67 3 accepted if it meets the criteria established by the natural
67 4 resource commission to be a fruit=tree or forest reservation.
67 5 Once the application has been accepted, the area shall
67 6 continue to receive the tax exemption during each year in
67 7 which the area is maintained as a fruit=tree or forest
67 8 reservation without the owner having to refile. If accepted
67 9 by the county, the application for a fruit=tree or forest
67 10 reservation tax exemption shall be stamped approved and the
67 11 assessor shall forward a copy of the application to the
67 12 recorder for recording. Acres in a forest reservation shall
67 13 be exempt from school district levies only.
67 14 PARAGRAPH DIVIDED. If the property is sold or transferred,
67 15 the seller shall notify the buyer that all, or part of, the
67 16 property is in fruit=tree or forest reservation and subject to
67 17 the recapture tax provisions of this section. The tax
67 18 exemption shall continue to be granted for the remainder of
67 19 the eight=year period for fruit=tree reservation and for the
67 20 following years for forest reservation or until the property
67 21 no longer qualifies as a fruit=tree or forest reservation.
67 22 The owner of the fruit=tree or forest reservation shall
67 23 annually certify to the county conservation board or the
67 24 assessor that the area is being maintained with proper fruit=
67 25 tree or forest management, including necessary pruning and
67 26 planting of trees. The area may be inspected each year by the
67 27 county conservation board or the assessor to determine if the
67 28 area is maintained as a fruit=tree or forest reservation. If
67 29 the area is not maintained or is used for economic gain other
67 30 than as a fruit=tree reservation during any year of the eight=
67 31 year exemption period and any year of the following five years
67 32 or as a forest reservation during any year for which the
67 33 exemption is granted and any of the five years following those
67 34 exemption years, the assessor shall assess the property for
67 35 taxation at its fair market value as of January 1 of that year
68 1 and in addition the area shall be subject to a recapture tax.
68 2 However, the area shall not be subject to the recapture tax if
68 3 the owner, including one possessing under a contract of sale,
68 4 and the owner's direct antecedents or descendants have owned
68 5 the area for more than ten years. The In the case of a fruit=
68 6 tree reservation, the tax shall be computed by multiplying the
68 7 consolidated levy for each of those years, if any, of the five
68 8 preceding years for which the area received the exemption for
68 9 fruit=tree or forest reservation times the assessed value of
68 10 the area that would have been taxed but for the tax exemption.
68 11 This In the case of a forest reservation, the tax shall be
68 12 computed by multiplying the school district levy for each of
68 13 those years, if any, of the five preceding years for which the
68 14 area received the exemption for forest reservation times the
68 15 assessed value of the area that would have been taxed but for
68 16 the tax exemption. The tax shall be entered against the
68 17 property on the tax list for the current year and shall
68 18 constitute a lien against the property in the same manner as a
68 19 lien for property taxes. The tax when collected shall be
68 20 apportioned in the manner provided for the apportionment of
68 21 the property taxes for the applicable tax year.
68 22 Sec. 128. Section 441.22, Code 2005, is amended to read as
68 23 follows:
68 24 441.22 FOREST AND FRUIT=TREE RESERVATIONS.
68 25 Forest and fruit=tree reservations fulfilling the
68 26 conditions of sections 427C.1 to 427C.13 shall be exempt from
68 27 taxation, except as otherwise provided in section 427C.12. In
68 28 all other cases where trees are planted upon any tract of
68 29 land, without regard to area, for forest, fruit, shade, or
68 30 ornamental purposes, or for windbreaks, the assessor shall not
68 31 increase the valuation of the property because of such
68 32 improvements.
68 33 Sec. 129. Section 499A.14, Code 2005, is amended to read
68 34 as follows:
68 35 499A.14 TAXATION.
69 1 The real estate shall be taxed in the name of the
69 2 cooperative, and each member of the cooperative shall pay that
69 3 member's proportionate share of the tax in accordance with the
69 4 proration formula set forth in the bylaws, and each member
69 5 occupying an apartment as a residence, if eligible, shall
69 6 receive that member's proportionate homestead tax credit
69 7 exemption and each veteran of the military services of the
69 8 United States identified as such under the laws of the state
69 9 of Iowa or the United States shall receive as a credit an
69 10 exemption that member's veterans tax benefit as prescribed by
69 11 the laws of the state of Iowa.
69 12 Sec. 130. Chapters 425A and 426, Code 2005, are repealed.
69 13 Sec. 131. Sections 425.4, 425.21, 425.24, 425.25, 425.33
69 14 through 425.36, 425.39, 425.40, 426A.1A through 426A.5, and
69 15 435.33, Code 2005, are repealed.
69 16 Sec. 132. EXEMPTIONS NOT CONSIDERED NEWLY ENACTED. The
69 17 homestead property tax exemption, extraordinary homestead
69 18 property tax exemption, and the military property tax
69 19 exemption are not considered newly enacted after January 1,
69 20 1997, for purposes of section 25B.7.
69 21 Sec. 133. CODE EDITOR DIRECTIVE. The Code editor is
69 22 directed to change the term "credit" to "exemption" anywhere
69 23 it occurs in the Code in reference to the homestead credit.
69 24 The Code editor is further directed to change the terms
69 25 "credit" and "credit or reimbursement" to "exemption" anywhere
69 26 those terms occur in the Code in reference to the
69 27 extraordinary property tax credit or reimbursement.
69 28 Sec. 134. EFFECTIVE AND APPLICABILITY DATES.
69 29 1. Unless otherwise stated, this division of this Act
69 30 takes effect January 1, 2007, and, except as provided in
69 31 subsections 2 and 3, applies to assessment years beginning on
69 32 or after that date.
69 33 2. The sections of this Act repealing chapters 425A and
69 34 426, and amending sections in chapters 425 and 426A, apply to
69 35 taxes due and payable in fiscal years beginning on or after
70 1 July 1, 2007.
70 2 3. The section of this Act amending section 427.1,
70 3 subsection 19, applies to exemptions on file or first applied
70 4 for on or after July 1, 2007.
70 5 DIVISION IV
70 6 IMPLEMENTATION COMMITTEE
70 7 Sec. 135. On or before July 1, 2006, the department of
70 8 revenue, in conjunction with the department of management,
70 9 shall initiate and coordinate the establishment of an
70 10 implementation committee. Both the department of revenue and
70 11 the department of management shall provide staffing assistance
70 12 to the committee.
70 13 The committee shall include members appointed by the
70 14 director of revenue representing the department of revenue,
70 15 the department of management, the department of education,
70 16 counties, cities, school districts, local assessors, and local
70 17 auditors.
70 18 The committee shall study the effects of implementation of
70 19 divisions I, II, and III of this Act. The committee shall
70 20 prepare a fiscal analysis detailing the effects of
70 21 implementation on different classes of property and on
70 22 different property taxpayers and the effect on city and county
70 23 revenues, school district revenues, and other local government
70 24 revenues. The fiscal analysis shall include a comparison of
70 25 property taxes levied by cities and counties under the current
70 26 system and property taxes that could be levied under the
70 27 provisions of this Act. The comparison shall include
70 28 projections beyond the current fiscal year.
70 29 The committee shall recommend adjustments to the property
70 30 tax levy portion of the school foundation formula that will
70 31 take into account the increased property tax valuation base
70 32 created by this Act and the increased state percentage of
70 33 school foundation funding provided in this Act.
70 34 The committee shall consider, and make recommendations on,
70 35 the conversion of all property tax certifying entities to a
71 1 percentage limit basis as is provided in this Act for cities
71 2 and counties, and partially for school districts. The
71 3 committee shall recommend percentage rates for cities,
71 4 counties, school districts, and other local governments that
71 5 are as nearly as possible revenue neutral.
71 6 The committee shall report to the general assembly by
71 7 January 15, 2007, and by January 15, 2008.
71 8 Sec. 136. EFFECTIVE DATE. This division of this Act,
71 9 being deemed of immediate importance, takes effect upon
71 10 enactment.
71 11 EXPLANATION
71 12 This bill makes various changes to the law relating to
71 13 property taxes, assessment of property, city and county
71 14 budgets funded primarily by property taxes, and school
71 15 district budgets funded primarily by state and local taxes.
71 16 Division I of the bill makes changes relating to local
71 17 budgets and property taxes. The division provides that if a
71 18 new state mandate is imposed on or after July 1, 2007, which
71 19 requires the performance of a new activity or service or the
71 20 expansion of a service beyond what was required before July 1,
71 21 2007, the state mandate must be fully funded. If the state
71 22 mandate is not fully funded, the affected political
71 23 subdivisions are not required to comply or implement the state
71 24 mandate. Also, no fines or penalties may be imposed on a
71 25 political subdivision for failure to comply or carry out an
71 26 unfunded state mandate.
71 27 The division strikes Code section 25B.2, subsection 3, and
71 28 rewrites it as a new section outside the intent section of
71 29 Code chapter 25B. The rewritten section removes a qualifying
71 30 phrase relating to specification of costs which provides that
71 31 a political subdivision may still be required to carry out an
71 32 unfunded state mandate. The rewritten section also strikes
71 33 the exception for federal mandates and for mandates relating
71 34 to public retirement systems. The rewritten section does not
71 35 include area education agencies and community colleges in the
72 1 definition of "political subdivision".
72 2 The division increases the regular program foundation base
72 3 per pupil from 87.5 percent to 95 percent, beginning with the
72 4 budget year commencing July 1, 2008, to offset the increase in
72 5 school property taxes due to the changed method of assessment.
72 6 The division reduces the $5.40 foundation levy to $4.32.
72 7 The division provides that, beginning with the fiscal year
72 8 beginning July 1, 2008, a school district cannot levy property
72 9 taxes, other than foundation and additional property taxes, in
72 10 excess of .25 percent of the taxable value of residential and
72 11 agricultural property and .75 percent of commercial property
72 12 and .5 percent of industrial property. The division contains
72 13 transition provisions for tax levies for fiscal year 2008=
72 14 2009, fiscal year 2009=2010, and fiscal year 2010==2011. The
72 15 division also provides that for the fiscal year beginning July
72 16 1, 2011, and subsequent fiscal years, such school district
72 17 property taxes by class cannot increase by more than the
72 18 consumer price index for the preceding 12 months.
72 19 The division provides that, beginning with the fiscal year
72 20 beginning July 1, 2008, a county cannot levy property taxes in
72 21 excess of the following percentages:
72 22 For residential property in the unincorporated area, 1
72 23 percent of the taxable value.
72 24 For income residential property in the unincorporated area,
72 25 one=half of 1 percent.
72 26 For agricultural property in the unincorporated area,
72 27 three=fourths of 1 percent.
72 28 For commercial property in the unincorporated area, 2
72 29 percent.
72 30 For industrial property in the unincorporated area, 3
72 31 percent.
72 32 For residential property in the incorporated area, one=
72 33 fourth of 1 percent.
72 34 For agricultural property in the incorporated area, one=
72 35 fourth of 1 percent.
73 1 For commercial property in the incorporated area, 1
73 2 percent. The 1 percent is lowered for successive years until
73 3 it reaches three=fourths of 1 percent.
73 4 For industrial property in the incorporated area, 1
73 5 percent.
73 6 For income residential property in the incorporated area,
73 7 one=half of 1 percent.
73 8 The division contains transition provisions for tax levies
73 9 for fiscal year 2008=2009, fiscal year 2009=2010, and fiscal
73 10 year 2010==2011.
73 11 The division requires that if a county's ending fund
73 12 balance for a budget year exceeds 25 percent of budgeted
73 13 expenditures, the excess over 25 percent must be explicitly
73 14 reserved or designated for a specific purpose. The division
73 15 applies to ending fund balances in the general and general
73 16 supplemental funds and the rural services and rural services
73 17 supplemental funds. The division defines "budget year",
73 18 "current fiscal year", and "item".
73 19 The division provides that if the amount of the ending fund
73 20 balance is protested to the state appeal board, the county has
73 21 the burden of proving that the amount over 25 percent is
73 22 reasonably likely to be appropriated for the reserved or
73 23 designated purpose. The limitation on ending fund balances
73 24 applies to fiscal years beginning on or after July 1, 2011.
73 25 The division also provides that, beginning with the fiscal
73 26 year beginning July 1, 2008, a city cannot levy property taxes
73 27 in excess of 1 percent of the taxable value of residential
73 28 property, one and one=half percent for income residential
73 29 property, three=fourths of 1 percent for agricultural
73 30 property, and 2 percent for commercial property and industrial
73 31 property. The 2 percent for commercial property is lowered
73 32 for successive years until it reaches 1 and one=half percent.
73 33 The division contains transition provisions for tax levies
73 34 for fiscal year 2008=2009, fiscal year 2009=2010, and fiscal
73 35 year 2010==2011.
74 1 The division allows a city or a county to impose, by
74 2 ordinance, a service charge against property located in the
74 3 city or county, as applicable. If a city or county imposes a
74 4 service charge, that city or county's maximum percentage levy
74 5 shall be lowered to reflect the amount of service charges
74 6 estimated to be collected for the fiscal year.
74 7 The division increases from 50 percent to 75 percent the
74 8 portion of base year expenditures paid by the state for mental
74 9 health, mental retardation, and developmental disabilities.
74 10 The division removes the square footage tax on mobile homes
74 11 and manufactured homes and replaces it with the ad valorem tax
74 12 imposed on other residences. The bill provides that real
74 13 estate of a mobile home park or land=leased community shall be
74 14 assessed and taxed as improved residential property.
74 15 The division also provides that, beginning with the fiscal
74 16 year beginning July 1, 2011, and subsequent fiscal years, city
74 17 or county property taxes by class cannot increase by more than
74 18 the consumer price index for the preceding 12 months unless
74 19 the increase is approved at election.
74 20 The division lowers the amount of interest that can be
74 21 charged against delinquent property taxes. The interest rate
74 22 is changed from 1 and one=half percent to 1 percent before tax
74 23 sale. The interest rate after the delinquent taxes are sold
74 24 at tax sale is changed from 2 percent to 1 and one=half
74 25 percent.
74 26 The sections of the division relating to delinquent
74 27 property tax interest rates take effect July 1, 2006, and
74 28 apply to property taxes which become delinquent on or after
74 29 July 1, 2006, and to parcels sold for delinquent taxes on or
74 30 after July 1, 2006. The remainder of the division takes
74 31 effect July 1, 2007, and applies to fiscal years beginning on
74 32 or after July 1, 2008.
74 33 Division II of the bill, relating to assessment of
74 34 property, provides that the sale price of property sold in the
74 35 calendar year prior to the assessment year shall be presumed
75 1 to be the market value of the property for that assessment
75 2 year if the buyer and the seller were not immediate family
75 3 members. The bill also provides that property sold at public
75 4 auction is not presumed to be an abnormal transaction or one
75 5 that distorts market value.
75 6 The division allows counties to share in the employment of
75 7 a county assessor.
75 8 The division also provides that if the assessor is unable
75 9 to establish fair market value of newly constructed
75 10 residential property because of a lack of comparable sales,
75 11 the assessor shall use the replacement cost method to value
75 12 the property.
75 13 The division removes the property tax assessment
75 14 limitations on residential, commercial, and industrial
75 15 property and requires that all such property be valued at a
75 16 five=year average of its fair market value with some
75 17 exceptions. The division provides a reduction from actual
75 18 value of 50 percent up to a maximum of $20,000 for improved
75 19 residential property and for improved income residential
75 20 property.
75 21 The division also provides a reduction from actual value of
75 22 50 percent up to a maximum of $25,000 for improved commercial
75 23 and improved industrial property. The division includes as
75 24 commercial property agricultural land held for development,
75 25 commercial, or investment purposes. Commercial property also
75 26 includes a tract of land containing an animal feeding
75 27 operation structure that is not being actively farmed by an
75 28 owner. The division further provides that the owner of
75 29 commercial property with a fair market value of less than
75 30 $500,000 may elect to have the actual value of the property
75 31 determined on the basis of net earning capacity. This does
75 32 not apply to commercial property that is agricultural land or
75 33 that contains an animal feeding operation structure, as
75 34 described above.
75 35 The division makes conforming amendments to sections
76 1 pertaining to valuation of property in an urban renewal area
76 2 and valuation of property owned by telegraph and telephone
76 3 companies, express companies, and electric cooperatives.
76 4 The division provides that agricultural property that is
76 5 owned by an owner who is actively engaged in farming the
76 6 agricultural land shall be assessed based on the current
76 7 productivity formula, and the current assessment limitation of
76 8 four percent is retained. This includes agricultural land
76 9 containing an animal feeding operation structure if it is
76 10 owned by an owner who is actively engaged in farming the land.
76 11 The division defines "owner" and "actively engaged in
76 12 farming".
76 13 The division provides that agricultural land that is not
76 14 included in the class of commercial property and is not owned
76 15 by an owner actively engaged in farming shall be valued at a
76 16 five=year average of its fair market value. Each farm unit
76 17 assessed in this manner shall receive a reduction from actual
76 18 value of 50 percent up to a maximum of $65,000.
76 19 The division provides that attorney fees incurred by a
76 20 property owner or aggrieved taxpayer in an appeal of an
76 21 assessment to district court may be awarded by the court and
76 22 assessed against the board of review or any taxing body
76 23 involved in the appeal unless the court determines that the
76 24 protest of assessment was frivolous and, in that case, the
76 25 court may assess the costs of defending the protest against
76 26 the owner or taxpayer.
76 27 The division requires the local assessor and local board of
76 28 review to keep confidential any documents, reports, audits,
76 29 and other information supplied by a taxpayer or property owner
76 30 relating to the amount or source of income, profits, losses,
76 31 or expenditures of the taxpayer or property owner.
76 32 The division increases from three years to six years the
76 33 time period that subdivided property shall be assessed as
76 34 acreage or unimproved property.
76 35 The division takes effect January 1, 2007, and applies to
77 1 assessment years beginning on or after January 1, 2007.
77 2 Division III of the bill, relating to property tax credits
77 3 and exemptions, strikes the state reimbursement for the
77 4 homestead property tax credit and military property tax credit
77 5 and changes the credits to exemptions from assessed value.
77 6 The homestead exemption amount is increased from $4,850 to
77 7 $5,000. The military exemption amount is increased from
77 8 $1,852 to $2,000. The amount of exemption for veterans of
77 9 World War I is retained at $2,778.
77 10 The division amends provisions relating to the elderly,
77 11 disabled, and low=income property tax credit by making it an
77 12 exemption from assessed value and by eliminating the sliding
77 13 scale for income and exemption amount and replacing it with a
77 14 flat exemption amount of $2,500. Elderly persons, disabled
77 15 persons, and low=income persons all of whom have household
77 16 income of less than $16,500 are eligible for the credit.
77 17 The division directs the Code editor to change "credit" and
77 18 "credit or reimbursement" to "exemption" wherever it occurs in
77 19 the Code in relation to the military tax credit and the
77 20 homestead tax credit. The division also provides that all
77 21 three exemptions are not considered to be newly enacted for
77 22 purposes of state mandate funding requirements.
77 23 The division limits the pollution=control property tax
77 24 exemption to $100,000 of value.
77 25 The division provides that any land in a forest reservation
77 26 is exempt from school district levies only. The division
77 27 requires the owner of land in a forest or fruit=tree
77 28 reservation to annually certify that proper management
77 29 techniques, such as pruning and planting, are being followed.
77 30 The division repeals the family farm property tax credit
77 31 and the agricultural land property tax credit. The division
77 32 makes conforming amendments pertaining to these repeals.
77 33 The sections of the division amending the homestead tax
77 34 credit, the elderly, disabled, and low=income tax credit, and
77 35 the military tax exemption and credit, and repealing the
78 1 family farm tax credit and the agricultural land tax credit
78 2 apply to taxes due and payable in fiscal years beginning on or
78 3 after July 1, 2007. The section of the division limiting the
78 4 value of pollution control that is exempt applies to
78 5 exemptions on file as of July 1, 2007, or first applied for on
78 6 or after July 1, 2007. The remainder of the division applies
78 7 to assessment years beginning on or after January 1, 2007.
78 8 Division IV of the bill establishes an implementation
78 9 committee to study the effects of implementation of the bill.
78 10 The committee is to report to the general assembly by January
78 11 15, 2007, and by January 15, 2008. The division takes effect
78 12 upon enactment.
78 13 LSB 5134SS 81
78 14 sc:rj/gg/14