HF 2366 (LSB 5985YH (2) 83)

HOUSE FILE 2366

BY  WORTHAN

A BILL FOR

An Act relating to the classification of certain multipurpose property for property assessment and taxation purposes.
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.  11A.  a.  Beginning with valuations established on or after January 1, 2011, as used in this section, “residential property” shall include any unit of a multipurpose building that is occupied by the taxpayer as a homestead, as defined in section 425.11, and includes a percentage of the land used as part of the building that is equal to the percentage of the multipurpose building’s total square footage occupied by the unit. For purposes of this subsection, “multipurpose building” means a building containing four separate units that is used in part for commercial or industrial purposes.
   b.  The other units in the multipurpose building, including a percentage of the land that is equal to the percentage of the multipurpose building’s total square footage occupied by those units, not classified and assessed pursuant to paragraph “a” shall be classified and assessed together as a separate parcel.
EXPLANATION
   This bill provides that, for purposes of property tax assessment, residential property includes a unit of a multipurpose building that is occupied by the taxpayer as a homestead and a percentage of the land that is equal to the percentage of the multipurpose building’s total square footage occupied by the unit. The bill defines “multipurpose building” to be a building containing four separate units that is used in part for commercial or industrial purposes.
   The bill also provides that the other units of the multipurpose building, including a proportionate share of the land, shall be classified and assessed together as a separate parcel.
   The bill applies to property valuations established on or after January 1, 2011.