House File 734 - Introduced



                                     HOUSE FILE       
                                     BY  ALONS, ANDERSON, BAUDLER,
                                         BOAL, CHAMBERS, CLUTE, DEYOE,
                                         DOLECHECK, DRAKE, FORRISTALL,
                                         GIPP, GRASSLEY, HORBACH,
                                         HUSEMAN, JACOBS, KAUFMANN,
                                         LUKAN, MAY, S. OLSON, RAECKER,
                                         RASMUSSEN, RAYHONS, ROBERTS,
                                         SODERBERG, STRUYK, TJEPKES,
                                         TOMENGA, TYMESON, UPMEYER,
                                         VAN FOSSEN, WATTS, WINDSCHITL,
                                         and WORTHAN


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

                                      A BILL FOR

  1 An Act relating to assessment of commercial and industrial
  2    property for purposes of property taxation and including a
  3    retroactive applicability date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1901YH 82
  6 sc/gg/14

PAG LIN



  1  1    Section 1.  Section 441.21, Code 2007, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  5A.  a.  For valuations established as of
  1  4 January 1, 2007, the percentage of actual value as equalized
  1  5 by the director of revenue pursuant to section 441.49 at which
  1  6 commercial and industrial property shall be assessed is
  1  7 ninety=five percent.
  1  8    b.  For valuations established as of January 1, 2008, the
  1  9 percentage of actual value as equalized by the director of
  1 10 revenue pursuant to section 441.49 at which commercial and
  1 11 industrial property shall be assessed is ninety percent.
  1 12    c.  For valuations established as of January 1, 2009, and
  1 13 each year thereafter, the percentage of actual value as
  1 14 equalized by the director of revenue pursuant to section
  1 15 441.49 at which commercial and industrial property shall be
  1 16 assessed is eighty=five percent.
  1 17    d.  Local governments shall be reimbursed by the state for
  1 18 a period of ten years beginning with the fiscal year beginning
  1 19 July 1, 2008, in an amount corresponding to the reduction in
  1 20 property tax revenues as a result of the operation of this
  1 21 subsection.  However, beginning with the fiscal year beginning
  1 22 July 1, 2010, the reimbursement to be paid by the state to
  1 23 each taxing jurisdiction shall be reduced by an amount equal
  1 24 to fifty percent of the property tax revenues collected in
  1 25 that taxing jurisdiction due to new construction of commercial
  1 26 and industrial property.
  1 27    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 28 retroactively to January 1, 2007, for assessment years
  1 29 beginning on or after that date.
  1 30                           EXPLANATION
  1 31    This bill provides that for the assessment year beginning
  1 32 January 1, 2007, commercial and industrial property shall be
  1 33 assessed at 95 percent of actual value.  For the assessment
  1 34 year beginning January 1, 2008, commercial and industrial
  1 35 property shall be assessed at 90 percent of actual value.  For
  2  1 the assessment year beginning January 1, 2009, and subsequent
  2  2 assessment years, commercial and industrial property shall be
  2  3 assessed at 85 percent of actual value.
  2  4    The bill also provides that the state shall reimburse local
  2  5 governments for a period of 10 years in an amount
  2  6 corresponding to the reduction in property tax revenues as a
  2  7 result of the lower percentage applied to commercial and
  2  8 industrial property.  However, the bill also provides that,
  2  9 beginning with the fiscal year beginning July 1, 2010, the
  2 10 amount of the reimbursement to be paid by the state to each
  2 11 taxing jurisdiction shall be reduced by an amount equal to
  2 12 fifty percent of the property tax revenues collected in that
  2 13 taxing jurisdiction due to new construction of commercial and
  2 14 industrial property.
  2 15    The bill applies retroactively to January 1, 2007, for
  2 16 assessment years beginning on or after that date.
  2 17 LSB 1901YH 82
  2 18 sc:rj/gg/14.1