House File 136 - Introduced HOUSE FILE 136 BY DEYOE A BILL FOR An Act reducing the assessment limitation for commercial and 1 industrial property and including retroactive applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1688YH (6) 84 md/sc

H.F. 136 Section 1. Section 441.21, subsection 5, Code 2011, is 1 amended to read as follows: 2 5. For valuations established as of January 1, 1979, 3 commercial property and industrial property, excluding 4 properties referred to in section 427A.1, subsection 8 , shall 5 be assessed as a percentage of the actual value of each class 6 of property. The percentage shall be determined for each 7 class of property by the director of revenue for the state in 8 accordance with the provisions of this section . For valuations 9 established as of January 1, 1979, the percentage shall be 10 the quotient of the dividend and divisor as defined in this 11 section . The dividend for each class of property shall be the 12 total actual valuation for each class of property established 13 for 1978, plus six percent of the amount so determined. The 14 divisor for each class of property shall be the valuation 15 for each class of property established for 1978, as reported 16 by the assessors on the abstracts of assessment for 1978, 17 plus the amount of value added to the total actual value by 18 the revaluation of existing properties in 1979 as equalized 19 by the director of revenue pursuant to section 441.49 . For 20 valuations established as of January 1, 1979, property valued 21 by the department of revenue pursuant to chapters 428 , 433 , 22 437 , and 438 shall be considered as one class of property and 23 shall be assessed as a percentage of its actual value. The 24 percentage shall be determined by the director of revenue in 25 accordance with the provisions of this section . For valuations 26 established as of January 1, 1979, the percentage shall be 27 the quotient of the dividend and divisor as defined in this 28 section . The dividend shall be the total actual valuation 29 established for 1978 by the department of revenue, plus ten 30 percent of the amount so determined. The divisor for property 31 valued by the department of revenue pursuant to chapters 428 , 32 433 , 437 , and 438 shall be the valuation established for 1978, 33 plus the amount of value added to the total actual value by 34 the revaluation of the property by the department of revenue 35 -1- LSB 1688YH (6) 84 md/sc 1/ 4

H.F. 136 as of January 1, 1979. For valuations established as of 1 January 1, 1980, commercial property and industrial property, 2 excluding properties referred to in section 427A.1, subsection 3 8 , shall be assessed at a percentage of the actual value of 4 each class of property. The percentage shall be determined 5 for each class of property by the director of revenue for the 6 state in accordance with the provisions of this section . For 7 valuations established as of January 1, 1980, the percentage 8 shall be the quotient of the dividend and divisor as defined in 9 this section . The dividend for each class of property shall 10 be the dividend as determined for each class of property for 11 valuations established as of January 1, 1979, adjusted by the 12 product obtained by multiplying the percentage determined 13 for that year by the amount of any additions or deletions to 14 actual value, excluding those resulting from the revaluation 15 of existing properties, as reported by the assessors on the 16 abstracts of assessment for 1979, plus four percent of the 17 amount so determined. The divisor for each class of property 18 shall be the total actual value of all such property in 1979, 19 as equalized by the director of revenue pursuant to section 20 441.49 , plus the amount of value added to the total actual 21 value by the revaluation of existing properties in 1980. The 22 director shall utilize information reported on the abstracts of 23 assessment submitted pursuant to section 441.45 in determining 24 such percentage. For valuations established as of January 1, 25 1980, property valued by the department of revenue pursuant 26 to chapters 428 , 433 , 437 , and 438 shall be assessed at a 27 percentage of its actual value. The percentage shall be 28 determined by the director of revenue in accordance with the 29 provisions of this section . For valuations established as of 30 January 1, 1980, the percentage shall be the quotient of the 31 dividend and divisor as defined in this section . The dividend 32 shall be the total actual valuation established for 1979 by 33 the department of revenue, plus eight percent of the amount so 34 determined. The divisor for property valued by the department 35 -2- LSB 1688YH (6) 84 md/sc 2/ 4

H.F. 136 of revenue pursuant to chapters 428 , 433 , 437 , and 438 shall be 1 the valuation established for 1979, plus the amount of value 2 added to the total actual value by the revaluation of the 3 property by the department of revenue as of January 1, 1980. 4 For valuations established as of January 1, 1981, and each 5 year thereafter, the percentage of actual value as equalized 6 by the director of revenue as provided in section 441.49 at 7 which commercial property and industrial property, excluding 8 properties referred to in section 427A.1, subsection 8 , shall 9 be assessed shall be calculated in accordance with the methods 10 provided herein, except that any references to six percent 11 in this subsection shall be four percent. For valuations 12 established as of January 1, 2011, and each year thereafter, 13 the percentage of actual value as equalized by the director 14 of revenue as provided in section 441.49 at which commercial 15 property and industrial property, excluding properties referred 16 to in section 427A.1, subsection 8, shall be assessed shall 17 be calculated in accordance with the methods provided herein, 18 except that any references to six percent or to four percent 19 in this subsection shall be zero percent. For valuations 20 established as of January 1, 1981, and each year thereafter, 21 the percentage of actual value at which property valued by 22 the department of revenue pursuant to chapters 428 , 433 , 437 , 23 and 438 shall be assessed shall be calculated in accordance 24 with the methods provided herein, except that any references 25 to ten percent in this subsection shall be eight percent. 26 Beginning with valuations established as of January 1, 1979, 27 and each year thereafter, property valued by the department of 28 revenue pursuant to chapter 434 shall also be assessed at a 29 percentage of its actual value which percentage shall be equal 30 to the percentage determined by the director of revenue for 31 commercial property, industrial property, or property valued by 32 the department of revenue pursuant to chapters 428 , 433 , 437 , 33 and 438 , whichever is lowest. 34 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 35 -3- LSB 1688YH (6) 84 md/sc 3/ 4

H.F. 136 retroactively to assessment years beginning on or after January 1 1, 2011. 2 EXPLANATION 3 This bill changes the property tax assessment limitation 4 percentage for commercial and industrial property from 4 5 percent to 0 percent. 6 The bill applies retroactively to assessment years beginning 7 on or after January 1, 2011. 8 -4- LSB 1688YH (6) 84 md/sc 4/ 4