House File 668 - Introduced
HOUSE FILE
BY JACOBY
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the taxation of commercial property and
2 providing an applicability date.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2286YH 83
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PAG LIN
1 1 Section 1. Section 441.21, subsection 5, Code 2009, is
1 2 amended to read as follows:
1 3 5. a. 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.
3 14 For valuations established as of January 1, 1981, and each
3 15 year thereafter, the percentage of actual value at which
3 16 property valued by the department of revenue pursuant to
3 17 chapters 428, 433, 437, and 438 shall be assessed shall be
3 18 calculated in accordance with the methods provided herein,
3 19 except that any references to ten percent in this subsection
3 20 shall be eight percent. Beginning with valuations established
3 21 as of January 1, 1979, and each year thereafter, property
3 22 valued by the department of revenue pursuant to chapter 434
3 23 shall also be assessed at a percentage of its actual value
3 24 which percentage shall be equal to the percentage determined
3 25 by the director of revenue for commercial property, industrial
3 26 property, or property valued by the department of revenue
3 27 pursuant to chapters 428, 433, 437, and 438, whichever is
3 28 lowest.
3 29 b. Notwithstanding paragraph "a", for valuations
3 30 established for the assessment year beginning January 1, 2010,
3 31 through valuations established for the assessment year
3 32 beginning January 1, 2019, the percentage of actual value, as
3 33 equalized by the director of revenue as provided in section
3 34 441.49, at which commercial property, excluding properties
3 35 referred to in section 427A.1, subsection 8, shall be assessed
4 1 shall be the percentage of actual value that commercial
4 2 property was assessed in the previous assessment year minus
4 3 one percentage point. For valuations established as of
4 4 January 1, 2020, and each year thereafter, the percentage of
4 5 actual value, as equalized by the director of revenue as
4 6 provided in section 441.49, at which commercial property,
4 7 excluding properties referred to in section 427A.1, subsection
4 8 8, shall be assessed shall be the percentage of actual value
4 9 that commercial property was assessed in the assessment year
4 10 beginning January 1, 2019.
4 11 Sec. 2. APPLICABILITY. This Act applies to assessment
4 12 years beginning on or after January 1, 2010.
4 13 EXPLANATION
4 14 This bill provides that the percentage of actual value at
4 15 which commercial property is assessed for the assessment years
4 16 beginning January 1, 2010, through January 1, 2019, is reduced
4 17 by 1 percentage point each year from the percentage in the
4 18 previous assessment year. The bill provides that for the
4 19 assessment year beginning January 1, 2020, and each subsequent
4 20 assessment year, the percentage of actual value at which
4 21 commercial property is assessed shall be the percentage of
4 22 actual value that commercial property was assessed in the
4 23 assessment year beginning January 1, 2019.
4 24 The bill applies to assessment years beginning on or after
4 25 January 1, 2010.
4 26 LSB 2286YH 83
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