S.F. 487 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 1799XS (2) 84 md/sc 1/ 5

S.F. 487 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 1799XS (2) 84 md/sc 2/ 5

S.F. 487 of revenue pursuant to chapters 428 , 433 , 437 , and 438 shall 1 be the valuation established for 1979, plus the amount of 2 value added to the total actual value by the revaluation of 3 the property by the department of revenue as of January 1, 4 1980. For valuations established as of January 1, 1981, 5 and each year thereafter, the percentage of actual value as 6 equalized by the director of revenue as provided in section 7 441.49 at which commercial property and industrial property, 8 excluding properties referred to in section 427A.1, subsection 9 8 , shall be assessed shall be calculated in accordance with 10 the methods provided herein in this subsection , except that 11 any references to six percent in this subsection shall be four 12 percent. For valuations established as of January 1, 1981, 13 and each year thereafter, the percentage of actual value at 14 which property valued by the department of revenue pursuant 15 to chapters 428 , 433 , 437 , and 438 shall be assessed shall be 16 calculated in accordance with the methods provided herein, 17 except that any references to ten percent in this subsection 18 shall be eight percent. Beginning with valuations established 19 as of January 1, 1979, and each year thereafter, property 20 valued by the department of revenue pursuant to chapter 434 21 shall also be assessed at a percentage of its actual value 22 which percentage shall be equal to the percentage determined 23 by the director of revenue for commercial property, industrial 24 property, or property valued by the department of revenue 25 pursuant to chapters 428 , 433 , 437 , and 438 , whichever is 26 lowest. For valuations established for the assessment year 27 beginning January 1, 2012, and each assessment year thereafter, 28 the percentage of actual value as equalized by the director 29 of revenue as provided in section 441.49 at which commercial 30 property that is new commercial property shall be assessed 31 shall be ninety percent. For purposes of this section, “new 32 commercial property” means a parcel of real estate containing 33 no existing buildings or structures and upon which the 34 construction of buildings or structures is commenced after 35 -3- LSB 1799XS (2) 84 md/sc 3/ 5

S.F. 487 January 1, 2011, and that, but for this provision, would be 1 assessed as other commercial property under this subsection. 2 Sec. 2. Section 441.21, subsection 8, paragraph b, Code 3 2011, is amended to read as follows: 4 b. Notwithstanding paragraph “a” , any construction or 5 installation of a solar energy system on property classified 6 as agricultural, residential, commercial, new commercial, or 7 industrial property shall not increase the actual, assessed , 8 and taxable values of the property for five full assessment 9 years. 10 Sec. 3. Section 441.21, subsections 9 and 10, Code 2011, are 11 amended to read as follows: 12 9. Not later than November 1, 1979, and November 1 of 13 each subsequent year, the director shall certify to the 14 county auditor of each county the percentages of actual 15 value at which residential property, agricultural property, 16 commercial property, new commercial property, industrial 17 property, and property valued by the department of revenue 18 pursuant to chapters 428 , 433 , 434 , 437 , and 438 in each 19 assessing jurisdiction in the county shall be assessed for 20 taxation. The county auditor shall proceed to determine the 21 assessed values of agricultural property, residential property, 22 commercial property, new commercial property, industrial 23 property, and property valued by the department of revenue 24 pursuant to chapters 428 , 433 , 434 , 437 , and 438 by applying 25 such percentages to the current actual value of such property, 26 as reported to the county auditor by the assessor, and the 27 assessed values so determined shall be the taxable values of 28 such properties upon which the levy shall be made. 29 10. The percentage of actual value computed by the 30 director for agricultural property, residential property, 31 commercial property, new commercial property, industrial 32 property , and property valued by the department of revenue 33 pursuant to chapters 428 , 433 , 434 , 437 , and 438 and used to 34 determine assessed values of those classes of property does not 35 -4- LSB 1799XS (2) 84 md/sc 4/ 5

S.F. 487 constitute a rule as defined in section 17A.2, subsection 11 . 1 Sec. 4. APPLICABILITY. This Act applies to property tax 2 assessment years beginning on or after January 1, 2012. 3 EXPLANATION 4 This bill provides that for valuations established for 5 assessment years beginning on or after January 1, 2012, the 6 percentage of actual value at which new commercial property 7 shall be assessed shall be 90 percent. The bill defines 8 “new commercial property” to mean a parcel of real estate 9 containing no existing buildings or structures and upon which 10 the construction of buildings or structures is commenced after 11 January 1, 2011, and that, but for the classification, would be 12 assessed as commercial property. 13 The bill makes corresponding changes to other provisions in 14 Code section 441.21. 15 The bill applies to property tax assessment years beginning 16 on or after January 1, 2012. 17 -5- LSB 1799XS (2) 84 md/sc 5/ 5