House File 2042 - Introduced



                                       HOUSE FILE       
                                       BY  GRANZOW and BAILEY


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the productivity formula used to assess
  2    agricultural property for purposes of property taxation and
  3    providing an applicability date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5518YH 82
  6 sc/rj/24

PAG LIN



  1  1    Section 1.  Section 441.21, subsection 1, paragraph e, Code
  1  2 2007, is amended to read as follows:
  1  3    e.  The actual value of agricultural property shall be
  1  4 determined on the basis of productivity and net earning
  1  5 capacity of the property determined on the basis of its use
  1  6 for agricultural purposes capitalized at a rate of seven
  1  7 percent and applied uniformly among counties and among classes
  1  8 of property.  Any formula or method employed to determine
  1  9 productivity and net earning capacity of property shall be
  1 10 adopted in full by rule.  Effective for the assessment year
  1 11 beginning January 1, 2013, and each year thereafter, such
  1 12 formula or method shall determine productivity and net earning
  1 13 capacity based on a ten=year average with the tenth year
  1 14 beginning two years prior to January 1 of the assessment year.
  1 15    For valuations established for the assessment year
  1 16 beginning January 1, 2009, through valuations established for
  1 17 the assessment year beginning January 1, 2012, the formula or
  1 18 method used to determine productivity and net earning capacity
  1 19 shall be an average based on the following calendar years:
  1 20    (1)  For the assessment year beginning January 1, 2009,
  1 21 calendar years 2002 through 2007.
  1 22    (2)  For the assessment year beginning January 1, 2010,
  1 23 calendar years 2002 through 2008.
  1 24    (3)  For the assessment year beginning January 1, 2011,
  1 25 calendar years 2002 through 2009.
  1 26    (4)  For the assessment year beginning January 1, 2012,
  1 27 calendar years 2002 through 2010.
  1 28    Sec. 2.  APPLICABILITY.  This Act applies to assessment
  1 29 years beginning on or after January 1, 2009.
  1 30                           EXPLANATION
  1 31    This bill provides that the formula used to determine
  1 32 productivity and net earning capacity of agricultural land for
  1 33 purposes of property taxation shall be based on a 10=year
  1 34 average rather than the current five=year average.  The bill
  1 35 provides for a transition to the 10=year average.
  2  1    The bill applies to assessment years beginning on or after
  2  2 January 1, 2009.
  2  3 LSB 5518YH 82
  2  4 sc/rj/24