Senate File 2083 - Introduced SENATE FILE 2083 BY CHELGREN A BILL FOR An Act relating to property taxation by modifying assessment 1 limitations on classifications of property, by modifying 2 the method for valuing agricultural property, and including 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5907XS (3) 84 md/sc

S.F. 2083 Section 1. Section 403.20, Code 2011, is amended to read as 1 follows: 2 403.20 Percentage of adjustment considered in value 3 assessment. 4 In determining the assessed value of property within an 5 urban renewal area which is subject to a division of tax 6 revenues pursuant to section 403.19 , the difference between the 7 actual value of the property as determined by the assessor each 8 year and the percentage of adjustment certified for that year 9 by the director of revenue on or before November 1 pursuant to 10 specified in section 441.21, subsection 9 1 , paragraph “a” , 11 multiplied by the actual value of the property as determined by 12 the assessor, shall be subtracted from the actual value of the 13 property as determined pursuant to section 403.19, subsection 14 1 . If the assessed value of the property as determined 15 pursuant to section 403.19, subsection 1 , is reduced to zero, 16 the additional valuation reduction shall be subtracted from the 17 actual value of the property as determined by the assessor. 18 Sec. 2. Section 441.21, subsection 1, paragraph a, Code 19 Supplement 2011, is amended to read as follows: 20 a. All property subject to taxation shall be valued at its 21 actual value which shall be entered opposite each item, and , 22 except as otherwise provided in this section , shall be assessed 23 at one hundred fifty percent of its actual value, and the value 24 so assessed shall be taken and considered as the assessed value 25 and taxable value of the property upon which the levy shall be 26 made. 27 Sec. 3. Section 441.21, subsection 1, paragraphs e and f, 28 Code Supplement 2011, are amended by striking the paragraphs. 29 Sec. 4. Section 441.21, subsection 1, paragraph g, Code 30 Supplement 2011, is amended to read as follows: 31 g. Notwithstanding any other provision of this section , 32 the actual value of any property shall not exceed its fair and 33 reasonable market value , except agricultural property which 34 shall be valued exclusively as provided in paragraph “e” of this 35 -1- LSB 5907XS (3) 84 md/sc 1/ 3

S.F. 2083 subsection . 1 Sec. 5. Section 441.21, subsection 6, Code Supplement 2011, 2 is amended to read as follows: 3 6. Beginning with valuations established as of January 4 1, 1978, the assessors shall report the aggregate taxable 5 values and the number of dwellings located on agricultural 6 land and the aggregate taxable value of all other structures 7 on agricultural land . Beginning with valuations established 8 as of January 1, 1981, the agricultural dwellings located on 9 agricultural land shall be valued at their market value as 10 defined in this section and agricultural dwellings shall be 11 valued as rural residential property and shall be assessed at 12 the same percentage of actual value as is all other classified 13 as residential property. 14 Sec. 6. Section 441.21, subsections 4, 5, 9, and 10, Code 15 Supplement 2011, are amended by striking the subsections. 16 Sec. 7. APPLICABILITY. This Act applies to assessment years 17 beginning on or after January 1, 2013. 18 EXPLANATION 19 This bill strikes the current methodology used to calculate 20 the assessment limitations (rollback) under Code section 441.21 21 for residential property, agricultural property, commercial 22 property, industrial property, and property valued by the 23 department of revenue pursuant to Code chapters 428, 433, 434, 24 437, and 438. The bill provides that all property subject 25 to taxation shall be valued at its actual value and shall be 26 assessed at 50 percent of its actual value. Code section 27 441.21 defines “actual value” to mean market value. 28 The bill also strikes provisions requiring that the actual 29 value of agricultural property be determined on the basis of 30 productivity and net earning capacity of the property. Under 31 the bill, agricultural property shall be valued based on market 32 value. 33 The bill also makes corresponding changes to other 34 provisions of law to reflect the stricken methodology used to 35 -2- LSB 5907XS (3) 84 md/sc 2/ 3

S.F. 2083 calculate the assessment limitations under Code section 441.21. 1 The bill applies to assessment years beginning on or after 2 January 1, 2013. 3 -3- LSB 5907XS (3) 84 md/sc 3/ 3