House Study Bill 225 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR An Act relating to property assessment and property taxation by 1 creating a recreational class of property and specifying an 2 assessment limitation for recreational property. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2735HC (2) 84 md/sc

H.F. _____ Section 1. Section 441.21, subsection 8, paragraph b, Code 1 2011, is amended to read as follows: 2 b. Notwithstanding paragraph “a” , any construction or 3 installation of a solar energy system on property classified 4 as agricultural, residential, commercial, recreational, or 5 industrial property shall not increase the actual, assessed , 6 and taxable values of the property for five full assessment 7 years. 8 Sec. 2. Section 441.21, subsections 9 and 10, Code 2011, are 9 amended to read as follows: 10 9. Not later than November 1, 1979, and November 1 of 11 each subsequent year, the director shall certify to the 12 county auditor of each county the percentages of actual 13 value at which residential property, agricultural property, 14 commercial property, industrial property, recreational 15 property, and property valued by the department of revenue 16 pursuant to chapters 428 , 433 , 434 , 437 , and 438 in each 17 assessing jurisdiction in the county shall be assessed for 18 taxation. The county auditor shall proceed to determine the 19 assessed values of agricultural property, residential property, 20 commercial property, industrial property, recreational 21 property, and property valued by the department of revenue 22 pursuant to chapters 428 , 433 , 434 , 437 , and 438 by applying 23 such percentages to the current actual value of such property, 24 as reported to the county auditor by the assessor, and the 25 assessed values so determined shall be the taxable values of 26 such properties upon which the levy shall be made. 27 10. The percentage of actual value computed by the director 28 for agricultural property, residential property, commercial 29 property, industrial property , recreational property, and 30 property valued by the department of revenue pursuant to 31 chapters 428 , 433 , 434 , 437 , and 438 and used to determine 32 assessed values of those classes of property does not 33 constitute a rule as defined in section 17A.2, subsection 11 . 34 Sec. 3. Section 441.21, Code 2011, is amended by adding the 35 -1- LSB 2735HC (2) 84 md/sc 1/ 3

H.F. _____ following new subsection: 1 NEW SUBSECTION . 13. a. (1) For valuations established 2 for the assessment year beginning January 1, 2012, property 3 described in this subsection shall be valued as a separate 4 class of property called recreational property and shall be 5 assessed at ninety percent of its actual value. 6 (2) For valuations established for the assessment year 7 beginning January 1, 2013, through valuations established for 8 the assessment year beginning January 1, 2015, recreational 9 property shall be valued as a separate class of property and 10 shall be assessed at a percentage of actual value equal to the 11 percentage of actual value that the recreational property was 12 assessed in the previous assessment year minus ten percentage 13 points. 14 (3) For valuations established for the assessment year 15 beginning January 1, 2016, and each assessment year thereafter, 16 recreational property shall be valued as a separate class of 17 property and shall be assessed at fifty percent of its actual 18 value. 19 b. Recreational property is subject to reassessment by the 20 assessor and is subject to the same equalization percentage 21 amount determined by the director of revenue pursuant to 22 section 441.49 as is ordered for commercial property. 23 c. For purposes of this subsection, “recreational property” 24 means a golf course, downhill skiing area, campground, 25 amusement park, or water theme park, if such property is 26 operated as a commercial enterprise and otherwise subject to 27 taxation. 28 EXPLANATION 29 This bill creates a new class of property, recreational 30 property, for purposes of property assessment and taxation, 31 beginning with valuations established on or after January 1, 32 2012. The bill describes recreational property as a golf 33 course, downhill skiing area, campground, amusement park, or 34 water theme park, all of which are operated as commercial 35 -2- LSB 2735HC (2) 84 md/sc 2/ 3

H.F. _____ enterprises and are otherwise subject to taxation. 1 The bill provides that recreational property shall be 2 assessed for taxation at 90 percent of its actual value for 3 the assessment year beginning January 1, 2012. For valuations 4 established for the assessment year beginning January 1, 5 2013, through valuations established for the assessment 6 year beginning January 1, 2015, recreational property shall 7 be assessed at a percentage of actual value equal to the 8 percentage of actual value that the recreational property was 9 assessed in the previous assessment year minus 10 percentage 10 points. 11 For valuations established for the assessment year beginning 12 January 1, 2016, and each assessment year thereafter, 13 recreational property shall be assessed at 50 percent of its 14 actual value. 15 -3- LSB 2735HC (2) 84 md/sc 3/ 3