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
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