House File 2049 - Introduced HOUSE FILE BY DEYOE Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act reducing the assessment limitation for commercial and 2 industrial property and including a retroactive applicability 3 date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5511YH 82 6 sc/rj/5 PAG LIN 1 1 Section 1. Section 441.21, subsection 5, Code 2007, is 1 2 amended to read as follows: 1 3 5. For valuations established as of January 1, 1979, 1 4 commercial property and industrial property, excluding 1 5 properties referred to in section 427A.1, subsection 8, shall 1 6 be assessed as a percentage of the actual value of each class 1 7 of property. The percentage shall be determined for each 1 8 class of property by the director of revenue for the state in 1 9 accordance with the provisions of this section. For 1 10 valuations established as of January 1, 1979, the percentage 1 11 shall be the quotient of the dividend and divisor as defined 1 12 in this section. The dividend for each class of property 1 13 shall be the total actual valuation for each class of property 1 14 established for 1978, plus six percent of the amount so 1 15 determined. The divisor for each class of property shall be 1 16 the valuation for each class of property established for 1978, 1 17 as reported by the assessors on the abstracts of assessment 1 18 for 1978, plus the amount of value added to the total actual 1 19 value by the revaluation of existing properties in 1979 as 1 20 equalized by the director of revenue pursuant to section 1 21 441.49. For valuations established as of January 1, 1979, 1 22 property valued by the department of revenue pursuant to 1 23 chapters 428, 433, 437, and 438 shall be considered as one 1 24 class of property and shall be assessed as a percentage of its 1 25 actual value. The percentage shall be determined by the 1 26 director of revenue in accordance with the provisions of this 1 27 section. For valuations established as of January 1, 1979, 1 28 the percentage shall be the quotient of the dividend and 1 29 divisor as defined in this section. The dividend shall be the 1 30 total actual valuation established for 1978 by the department 1 31 of revenue, plus ten percent of the amount so determined. The 1 32 divisor for property valued by the department of revenue 1 33 pursuant to chapters 428, 433, 437, and 438 shall be the 1 34 valuation established for 1978, plus the amount of value added 1 35 to the total actual value by the revaluation of the property 2 1 by the department of revenue as of January 1, 1979. For 2 2 valuations established as of January 1, 1980, commercial 2 3 property and industrial property, excluding properties 2 4 referred to in section 427A.1, subsection 8, shall be assessed 2 5 at a percentage of the actual value of each class of property. 2 6 The percentage shall be determined for each class of property 2 7 by the director of revenue for the state in accordance with 2 8 the provisions of this section. For valuations established as 2 9 of January 1, 1980, the percentage shall be the quotient of 2 10 the dividend and divisor as defined in this section. The 2 11 dividend for each class of property shall be the dividend as 2 12 determined for each class of property for valuations 2 13 established as of January 1, 1979, adjusted by the product 2 14 obtained by multiplying the percentage determined for that 2 15 year by the amount of any additions or deletions to actual 2 16 value, excluding those resulting from the revaluation of 2 17 existing properties, as reported by the assessors on the 2 18 abstracts of assessment for 1979, plus four percent of the 2 19 amount so determined. The divisor for each class of property 2 20 shall be the total actual value of all such property in 1979, 2 21 as equalized by the director of revenue pursuant to section 2 22 441.49, plus the amount of value added to the total actual 2 23 value by the revaluation of existing properties in 1980. The 2 24 director shall utilize information reported on the abstracts 2 25 of assessment submitted pursuant to section 441.45 in 2 26 determining such percentage. For valuations established as of 2 27 January 1, 1980, property valued by the department of revenue 2 28 pursuant to chapters 428, 433, 437, and 438 shall be assessed 2 29 at a percentage of its actual value. The percentage shall be 2 30 determined by the director of revenue in accordance with the 2 31 provisions of this section. For valuations established as of 2 32 January 1, 1980, the percentage shall be the quotient of the 2 33 dividend and divisor as defined in this section. The dividend 2 34 shall be the total actual valuation established for 1979 by 2 35 the department of revenue, plus eight percent of the amount so 3 1 determined. The divisor for property valued by the department 3 2 of revenue pursuant to chapters 428, 433, 437, and 438 shall 3 3 be the valuation established for 1979, plus the amount of 3 4 value added to the total actual value by the revaluation of 3 5 the property by the department of revenue as of January 1, 3 6 1980. For valuations established as of January 1, 1981, and 3 7 each year thereafter, the percentage of actual value as 3 8 equalized by the director of revenue as provided in section 3 9 441.49 at which commercial property and industrial property, 3 10 excluding properties referred to in section 427A.1, subsection 3 11 8, shall be assessed shall be calculated in accordance with 3 12 the methods provided herein, except that any references to six 3 13 percent in this subsection shall be four percent. For 3 14 valuations established as of January 1, 2008, and each year 3 15 thereafter, the percentage of actual value as equalized by the 3 16 director of revenue as provided in section 441.49 at which 3 17 commercial property and industrial property, excluding 3 18 properties referred to in section 427A.1, subsection 8, shall 3 19 be assessed shall be calculated in accordance with the methods 3 20 provided herein, except that any references to six percent or 3 21 to four percent in this subsection shall be one percent. For 3 22 valuations established as of January 1, 1981, and each year 3 23 thereafter, the percentage of actual value at which property 3 24 valued by the department of revenue pursuant to chapters 428, 3 25 433, 437, and 438 shall be assessed shall be calculated in 3 26 accordance with the methods provided herein, except that any 3 27 references to ten percent in this subsection shall be eight 3 28 percent. Beginning with valuations established as of January 3 29 1, 1979, and each year thereafter, property valued by the 3 30 department of revenue pursuant to chapter 434 shall also be 3 31 assessed at a percentage of its actual value which percentage 3 32 shall be equal to the percentage determined by the director of 3 33 revenue for commercial property, industrial property, or 3 34 property valued by the department of revenue pursuant to 3 35 chapters 428, 433, 437, and 438, whichever is lowest. 4 1 Sec. 2. RETROACTIVE APPLICABILITY DATE. This division of 4 2 this Act applies retroactively to assessment years beginning 4 3 on or after January 1, 2008. 4 4 EXPLANATION 4 5 This bill changes the property tax assessment limitation 4 6 percentage for commercial and industrial property from 4 4 7 percent to 1 percent. 4 8 The bill applies retroactively to assessment years 4 9 beginning on or after January 1, 2008. 4 10 LSB 5511YH 82 4 11 sc/rj/5