Senate
File
488
-
Introduced
SENATE
FILE
488
BY
FEENSTRA
A
BILL
FOR
An
Act
relating
to
property
taxation
by
establishing
a
method
1
for
determining
certain
property
assessment
limitations,
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
441.21,
subsections
4
and
5,
Code
2011,
1
are
amended
to
read
as
follows:
2
4.
For
valuations
established
as
of
January
1,
1979,
3
the
percentage
of
actual
value
at
which
agricultural
and
4
residential
property
shall
be
assessed
shall
be
the
quotient
5
of
the
dividend
and
divisor
as
defined
in
this
section
.
The
6
dividend
for
each
class
of
property
shall
be
the
dividend
7
as
determined
for
each
class
of
property
for
valuations
8
established
as
of
January
1,
1978,
adjusted
by
the
product
9
obtained
by
multiplying
the
percentage
determined
for
that
10
year
by
the
amount
of
any
additions
or
deletions
to
actual
11
value,
excluding
those
resulting
from
the
revaluation
of
12
existing
properties,
as
reported
by
the
assessors
on
the
13
abstracts
of
assessment
for
1978,
plus
six
percent
of
the
14
amount
so
determined.
However,
if
the
difference
between
the
15
dividend
so
determined
for
either
class
of
property
and
the
16
dividend
for
that
class
of
property
for
valuations
established
17
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
18
multiplying
the
percentage
determined
for
that
year
by
the
19
amount
of
any
additions
or
deletions
to
actual
value,
excluding
20
those
resulting
from
the
revaluation
of
existing
properties,
21
as
reported
by
the
assessors
on
the
abstracts
of
assessment
22
for
1978,
is
less
than
six
percent,
the
1979
dividend
for
the
23
other
class
of
property
shall
be
the
dividend
as
determined
for
24
that
class
of
property
for
valuations
established
as
of
January
25
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
26
the
percentage
determined
for
that
year
by
the
amount
of
27
any
additions
or
deletions
to
actual
value,
excluding
those
28
resulting
from
the
revaluation
of
existing
properties,
as
29
reported
by
the
assessors
on
the
abstracts
of
assessment
for
30
1978,
plus
a
percentage
of
the
amount
so
determined
which
is
31
equal
to
the
percentage
by
which
the
dividend
as
determined
32
for
the
other
class
of
property
for
valuations
established
33
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
34
multiplying
the
percentage
determined
for
that
year
by
the
35
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amount
of
any
additions
or
deletions
to
actual
value,
excluding
1
those
resulting
from
the
revaluation
of
existing
properties,
2
as
reported
by
the
assessors
on
the
abstracts
of
assessment
3
for
1978,
is
increased
in
arriving
at
the
1979
dividend
for
4
the
other
class
of
property.
The
divisor
for
each
class
of
5
property
shall
be
the
total
actual
value
of
all
such
property
6
in
the
state
in
the
preceding
year,
as
reported
by
the
7
assessors
on
the
abstracts
of
assessment
submitted
for
1978,
8
plus
the
amount
of
value
added
to
said
total
actual
value
by
9
the
revaluation
of
existing
properties
in
1979
as
equalized
10
by
the
director
of
revenue
pursuant
to
section
441.49
.
The
11
director
shall
utilize
information
reported
on
abstracts
of
12
assessment
submitted
pursuant
to
section
441.45
in
determining
13
such
percentage.
For
valuations
established
as
of
January
14
1,
1980,
and
each
year
thereafter,
the
percentage
of
actual
15
value
as
equalized
by
the
director
of
revenue
as
provided
16
in
section
441.49
at
which
agricultural
and
residential
17
property
shall
be
assessed
shall
be
calculated
in
accordance
18
with
the
methods
provided
herein
including
the
limitation
of
19
increases
in
agricultural
and
residential
assessed
values
to
20
the
percentage
increase
of
the
other
class
of
property
if
the
21
other
class
increases
less
than
the
allowable
limit
adjusted
22
to
include
the
applicable
and
current
values
as
equalized
by
23
the
director
of
revenue
in
this
subsection
,
except
that
any
24
references
to
six
percent
in
this
subsection
shall
be
four
25
percent.
For
valuations
established
for
the
assessment
year
26
beginning
January
1,
2012,
and
each
assessment
year
thereafter,
27
the
percentage
of
actual
value
as
equalized
by
the
director
of
28
revenue
as
provided
in
section
441.49
at
which
agricultural
29
and
residential
property
shall
be
assessed
shall
be
calculated
30
in
accordance
with
the
methods
provided
in
this
subsection
and
31
subsection
5A,
except
that
any
references
to
six
percent
in
32
this
subsection
shall
be
four
percent.
33
5.
For
valuations
established
as
of
January
1,
1979,
34
commercial
property
and
industrial
property,
excluding
35
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488
properties
referred
to
in
section
427A.1,
subsection
8
,
shall
1
be
assessed
as
a
percentage
of
the
actual
value
of
each
class
2
of
property.
The
percentage
shall
be
determined
for
each
3
class
of
property
by
the
director
of
revenue
for
the
state
in
4
accordance
with
the
provisions
of
this
section
.
For
valuations
5
established
as
of
January
1,
1979,
the
percentage
shall
be
6
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
7
section
.
The
dividend
for
each
class
of
property
shall
be
the
8
total
actual
valuation
for
each
class
of
property
established
9
for
1978,
plus
six
percent
of
the
amount
so
determined.
The
10
divisor
for
each
class
of
property
shall
be
the
valuation
11
for
each
class
of
property
established
for
1978,
as
reported
12
by
the
assessors
on
the
abstracts
of
assessment
for
1978,
13
plus
the
amount
of
value
added
to
the
total
actual
value
by
14
the
revaluation
of
existing
properties
in
1979
as
equalized
15
by
the
director
of
revenue
pursuant
to
section
441.49
.
For
16
valuations
established
as
of
January
1,
1979,
property
valued
17
by
the
department
of
revenue
pursuant
to
chapters
428
,
433
,
18
437
,
and
438
shall
be
considered
as
one
class
of
property
and
19
shall
be
assessed
as
a
percentage
of
its
actual
value.
The
20
percentage
shall
be
determined
by
the
director
of
revenue
in
21
accordance
with
the
provisions
of
this
section
.
For
valuations
22
established
as
of
January
1,
1979,
the
percentage
shall
be
23
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
24
section
.
The
dividend
shall
be
the
total
actual
valuation
25
established
for
1978
by
the
department
of
revenue,
plus
ten
26
percent
of
the
amount
so
determined.
The
divisor
for
property
27
valued
by
the
department
of
revenue
pursuant
to
chapters
428
,
28
433
,
437
,
and
438
shall
be
the
valuation
established
for
1978,
29
plus
the
amount
of
value
added
to
the
total
actual
value
by
30
the
revaluation
of
the
property
by
the
department
of
revenue
31
as
of
January
1,
1979.
For
valuations
established
as
of
32
January
1,
1980,
commercial
property
and
industrial
property,
33
excluding
properties
referred
to
in
section
427A.1,
subsection
34
8
,
shall
be
assessed
at
a
percentage
of
the
actual
value
of
35
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488
each
class
of
property.
The
percentage
shall
be
determined
1
for
each
class
of
property
by
the
director
of
revenue
for
the
2
state
in
accordance
with
the
provisions
of
this
section
.
For
3
valuations
established
as
of
January
1,
1980,
the
percentage
4
shall
be
the
quotient
of
the
dividend
and
divisor
as
defined
in
5
this
section
.
The
dividend
for
each
class
of
property
shall
6
be
the
dividend
as
determined
for
each
class
of
property
for
7
valuations
established
as
of
January
1,
1979,
adjusted
by
the
8
product
obtained
by
multiplying
the
percentage
determined
9
for
that
year
by
the
amount
of
any
additions
or
deletions
to
10
actual
value,
excluding
those
resulting
from
the
revaluation
11
of
existing
properties,
as
reported
by
the
assessors
on
the
12
abstracts
of
assessment
for
1979,
plus
four
percent
of
the
13
amount
so
determined.
The
divisor
for
each
class
of
property
14
shall
be
the
total
actual
value
of
all
such
property
in
1979,
15
as
equalized
by
the
director
of
revenue
pursuant
to
section
16
441.49
,
plus
the
amount
of
value
added
to
the
total
actual
17
value
by
the
revaluation
of
existing
properties
in
1980.
The
18
director
shall
utilize
information
reported
on
the
abstracts
of
19
assessment
submitted
pursuant
to
section
441.45
in
determining
20
such
percentage.
For
valuations
established
as
of
January
1,
21
1980,
property
valued
by
the
department
of
revenue
pursuant
22
to
chapters
428
,
433
,
437
,
and
438
shall
be
assessed
at
a
23
percentage
of
its
actual
value.
The
percentage
shall
be
24
determined
by
the
director
of
revenue
in
accordance
with
the
25
provisions
of
this
section
.
For
valuations
established
as
of
26
January
1,
1980,
the
percentage
shall
be
the
quotient
of
the
27
dividend
and
divisor
as
defined
in
this
section
.
The
dividend
28
shall
be
the
total
actual
valuation
established
for
1979
by
29
the
department
of
revenue,
plus
eight
percent
of
the
amount
so
30
determined.
The
divisor
for
property
valued
by
the
department
31
of
revenue
pursuant
to
chapters
428
,
433
,
437
,
and
438
shall
32
be
the
valuation
established
for
1979,
plus
the
amount
of
33
value
added
to
the
total
actual
value
by
the
revaluation
of
34
the
property
by
the
department
of
revenue
as
of
January
1,
35
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488
1980.
For
valuations
established
as
of
January
1,
1981,
1
and
each
year
thereafter,
the
percentage
of
actual
value
as
2
equalized
by
the
director
of
revenue
as
provided
in
section
3
441.49
at
which
commercial
property
and
industrial
property,
4
excluding
properties
referred
to
in
section
427A.1,
subsection
5
8
,
shall
be
assessed
shall
be
calculated
in
accordance
with
6
the
methods
provided
herein
in
this
subsection
,
except
that
7
any
references
to
six
percent
in
this
subsection
shall
be
four
8
percent.
For
valuations
established
as
of
January
1,
1981,
9
and
each
year
thereafter,
the
percentage
of
actual
value
at
10
which
property
valued
by
the
department
of
revenue
pursuant
11
to
chapters
428
,
433
,
437
,
and
438
shall
be
assessed
shall
be
12
calculated
in
accordance
with
the
methods
provided
herein,
13
except
that
any
references
to
ten
percent
in
this
subsection
14
shall
be
eight
percent.
Beginning
with
valuations
established
15
as
of
January
1,
1979,
and
each
year
thereafter,
property
16
valued
by
the
department
of
revenue
pursuant
to
chapter
434
17
shall
also
be
assessed
at
a
percentage
of
its
actual
value
18
which
percentage
shall
be
equal
to
the
percentage
determined
19
by
the
director
of
revenue
for
commercial
property,
industrial
20
property,
or
property
valued
by
the
department
of
revenue
21
pursuant
to
chapters
428
,
433
,
437
,
and
438
,
whichever
is
22
lowest.
For
valuations
established
for
the
assessment
year
23
beginning
January
1,
2012,
and
each
assessment
year
thereafter,
24
the
percentage
of
actual
value
as
equalized
by
the
director
25
of
revenue
as
provided
in
section
441.49
at
which
commercial
26
property
shall
be
assessed
shall
be
calculated
in
accordance
27
with
the
methods
provided
in
this
subsection
and
subsection
5A,
28
if
applicable,
except
that
any
references
to
six
percent
in
29
this
subsection
shall
be
four
percent.
30
Sec.
2.
Section
441.21,
Code
2011,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
5A.
Notwithstanding
the
limitation
33
of
increases
for
agricultural
and
residential
property
in
34
subsection
4
and
the
limitation
of
increases
for
commercial
35
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488
property
in
subsection
5,
for
valuations
established
for
the
1
assessment
year
beginning
January
1,
2012,
and
each
assessment
2
year
thereafter,
for
residential,
agricultural,
and
commercial
3
property,
the
assessed
values
of
these
three
classes
of
4
property
shall
be
limited
to
the
percentage
increase
of
that
5
class
of
property
that
is
the
lowest
percentage
increase
under
6
the
allowable
limit
adjusted
to
include
the
applicable
and
7
current
values
as
equalized
by
the
director
of
revenue.
8
Sec.
3.
APPLICABILITY.
This
Act
applies
to
assessment
years
9
beginning
on
or
after
January
1,
2012.
10
EXPLANATION
11
This
bill
ties
together
the
assessment
limitations
of
12
residential,
agricultural,
and
commercial
property
by
limiting
13
the
percentage
increase
in
all
of
those
classes
of
property
14
to
the
percentage
increase
of
that
class
of
property
that
is
15
the
lowest
percentage
increase
under
the
allowable
(4
percent)
16
limit.
17
The
bill
applies
to
assessment
years
beginning
on
or
after
18
January
1,
2012.
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