HF 2104 (LSB 5121HH (1) 83)

HOUSE FILE 2104

BY  QUIRK

(COMPANION TO SF 2029)

A BILL FOR

An Act relating to property assessment and property taxation by creating a recreational class of property.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 441.21, Code Supplement 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  13.  a.  (1)  For valuations established for the assessment year beginning January 1, 2011, property described in this subsection shall be valued as a separate class of property called recreational property and shall be assessed at ninety percent of its actual value.
   (2)  For valuations established for the assessment year beginning January 1, 2012, through valuations established for the assessment year beginning January 1, 2014, recreational property shall be valued as a separate class of property and shall be assessed at a percentage of actual value equal to the percentage of actual value that the recreational property was assessed in the previous assessment year minus ten percentage points.
   (3)  For valuations established for the assessment year beginning January 1, 2015, and each assessment year thereafter, recreational property shall be valued as a separate class of property and shall be assessed at fifty percent of its actual value.
   b.  Recreational property is subject to reassessment by the assessor and is subject to the same equalization percentage amount determined by the director of revenue pursuant to section 441.49 as is ordered for commercial property.
   c.  For purposes of this subsection, “recreational property”means a golf course, downhill skiing area, campground, amusement park, or water theme park, if such property is operated as a commercial enterprise and otherwise subject to taxation.
EXPLANATION
   This bill creates a new class of property, recreational property, for purposes of property assessment and taxation, beginning with valuations established on or after January 1, 2011. The bill describes recreational property as a golf course, downhill skiing area, campground, amusement park, or water theme park, all of which are operated as a commercial enterprise and are otherwise subject to taxation.
   The bill provides that recreational property shall be assessed for taxation at 90 percent of its actual value for the assessment year beginning January 1, 2011. For valuations established for the assessment year beginning January 1, 2012, through valuations established for the assessment year beginning January 1, 2014, recreational property shall be assessed at a percentage of actual value equal to the percentage of actual value that the recreational property was assessed in the previous assessment year minus 10 percentage points.
   For valuations established for the assessment year beginning January 1, 2015, and each assessment year thereafter, recreational property shall be assessed at 50 percent of its actual value.