House File 655 - Introduced HOUSE FILE 655 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 300) (SUCCESSOR TO HSB 56) A BILL FOR An Act relating to the assessment of certain subdivided real 1 property and including effective date and retroactive 2 applicability and other applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1901HZ (2) 84 md/sc

H.F. 655 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 actually improved with a 15 residential structure . 16 2. The board of supervisors of a county with a population 17 of twenty thousand or more may adopt an ordinance providing 18 that property acquired and subdivided for development of 19 housing shall continue to be assessed for taxation in the 20 manner that it was prior to the acquisition for housing. Each 21 lot shall continue to be taxed in the manner it was prior 22 to its acquisition for housing until the lot is sold for 23 construction or occupancy of housing or three years from the 24 date of subdivision, whichever is shorter. Upon the sale or 25 the expiration of the three-year period, the property shall be 26 assessed for taxation as residential or commercial multifamily 27 property, whichever is applicable. 28 Sec. 2. Section 441.72, Code 2011, is amended to read as 29 follows: 30 441.72 Assessment of platted lots. 31 When a subdivision plat is recorded pursuant to chapter 32 354 , the individual lots within the subdivision plat shall 33 not be assessed in excess of the total assessment of the 34 land as acreage or unimproved property for three years after 35 -1- LSB 1901HZ (2) 84 md/sc 1/ 3

H.F. 655 the recording of the plat or until the lot is actually 1 improved with a permanent construction, whichever occurs first 2 structure . When an individual lot has been improved with a 3 permanent construction residential, industrial, or commercial 4 structure , the lot shall be assessed for taxation purposes as 5 provided in chapter 428 and this chapter . This section does 6 not apply to special assessment levies. 7 Sec. 3. EFFECTIVE UPON ENACTMENT AND APPLICABILITY. This 8 Act, being deemed of immediate importance, takes effect upon 9 enactment, applies to subdivision plats recorded on or after 10 January 1, 2004, and applies retroactively to assessment years 11 beginning on or after January 1, 2011. 12 EXPLANATION 13 Currently, a platted lot for which a subdivision plat has 14 been recorded will be assessed for property tax purposes as 15 acreage or unimproved property for three years or until the lot 16 is actually improved with permanent construction, whichever 17 occurs first. This bill removes the three-year time limit and 18 provides that a platted lot will be assessed as acreage or 19 unimproved property until the lot is actually improved with a 20 permanent residential, industrial, or commercial structure. 21 The bill also repeals a provision that allowed a county of 22 20,000 or more to adopt an ordinance providing for assessment 23 of subdivided lots acquired for development of housing in 24 the manner they were assessed prior to acquisition for three 25 years from the date of subdivision or until the lot is sold 26 for construction or occupancy of housing, whichever is sooner. 27 The bill also amends a similar provision that allowed counties 28 with a population of less than 20,000 to adopt the same 29 ordinance but with a five-year assessment period, by removing 30 the five-year time limit and the population limitation and 31 providing that such an ordinance may allow each lot to be taxed 32 in the manner it was prior to its acquisition until the lot is 33 actually improved with a residential structure. 34 The bill applies to subdivision plats recorded on or after 35 -2- LSB 1901HZ (2) 84 md/sc 2/ 3

H.F. 655 January 1, 2004, and applies retroactively to assessment years 1 beginning on or after January 1, 2011. 2 -3- LSB 1901HZ (2) 84 md/sc 3/ 3