House File 300 - Introduced HOUSE FILE 300 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 56) A BILL FOR An Act relating to the assessment of certain subdivided real 1 property and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1901HV (2) 84 md/sc

H.F. 300 Section 1. Section 405.1, Code 2011, is amended to read as 1 follows: 2 405.1 Housing development —— tax status —— limitation. 3 1. The board of supervisors of a county with a population 4 of less than twenty thousand may adopt an ordinance providing 5 that property acquired and subdivided for development of 6 housing shall continue to be assessed for taxation in the 7 manner that it was prior to the acquisition for housing. Each 8 lot shall continue to be taxed in the manner it was prior 9 to its acquisition for housing until the lot is sold for 10 construction or occupancy of housing or five years from the 11 date of subdivision, whichever is shorter. Upon the sale or 12 the expiration of the five-year period, the property shall be 13 assessed for taxation as residential or commercial multifamily 14 property, whichever is applicable . 15 2. The board of supervisors of a county with a population 16 of twenty thousand or more may adopt an ordinance providing 17 that property acquired and subdivided for development of 18 housing shall continue to be assessed for taxation in the 19 manner that it was prior to the acquisition for housing. Each 20 lot shall continue to be taxed in the manner it was prior 21 to its acquisition for housing until the lot is sold for 22 construction or occupancy of housing or three years from the 23 date of subdivision, whichever is shorter. Upon the sale or 24 the expiration of the three-year period, the property shall be 25 assessed for taxation as residential or commercial multifamily 26 property, whichever is applicable. 27 Sec. 2. Section 441.72, Code 2011, is amended to read as 28 follows: 29 441.72 Assessment of platted lots. 30 When a subdivision plat is recorded pursuant to chapter 31 354 , the individual lots within the subdivision plat shall 32 not be assessed in excess of the total assessment of the land 33 as acreage or unimproved property for three years after the 34 recording of the plat or until the lot is actually improved 35 -1- LSB 1901HV (2) 84 md/sc 1/ 2

H.F. 300 with permanent construction , whichever occurs first . When an 1 individual lot has been improved with permanent construction, 2 the lot shall be assessed for taxation purposes as provided in 3 chapter 428 and this chapter . This section does not apply to 4 special assessment levies. 5 Sec. 3. APPLICABILITY. This Act applies to assessment years 6 beginning on or after January 1, 2012. 7 EXPLANATION 8 Currently, a platted lot for which a subdivision plat has 9 been recorded will be assessed for property tax purposes as 10 acreage or unimproved property for three years or until the lot 11 is actually improved with permanent construction, whichever 12 occurs first. This bill removes the three-year time limit and 13 provides that a platted lot will be assessed as acreage or 14 unimproved property until the lot is actually improved with 15 permanent construction. 16 The bill also repeals a provision that allowed a county of 17 20,000 or more to adopt an ordinance providing for assessment 18 of subdivided lots acquired for development of housing in the 19 manner they were assessed prior to acquisition for three years 20 from the date of subdivision or until the lot is sold for 21 construction or occupancy of housing, whichever is sooner. The 22 bill also amends a similar provision that allowed counties with 23 a population of less than 20,000 to adopt the same ordinance 24 but with a five-year assessment period, by removing the 25 five-year time limit and providing that such an ordinance may 26 allow each lot to be taxed in the manner it was prior to its 27 acquisition until the lot is sold for construction or occupancy 28 of housing. 29 The bill applies to assessment years beginning on or after 30 January 1, 2012. 31 -2- LSB 1901HV (2) 84 md/sc 2/ 2