House
File
609
-
Introduced
HOUSE
FILE
609
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
150)
A
BILL
FOR
An
Act
relating
to
state
and
local
finances
by
establishing
and
1
modifying
property
assessment
limitations,
providing
for
2
commercial
and
industrial
property
tax
replacement
payments,
3
increasing
the
regular
program
foundation
base
percentage,
4
making
appropriations,
and
including
effective
date
and
5
retroactive
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
TLSB
1481HV
(2)
85
md/sc
H.F.
609
DIVISION
I
1
PROPERTY
ASSESSMENT
LIMITATION
AND
REPLACEMENT
2
Section
1.
Section
257.3,
subsection
1,
Code
2013,
is
3
amended
by
adding
the
following
new
paragraph:
4
NEW
PARAGRAPH
.
d.
The
amount
paid
to
each
school
district
5
for
the
commercial
and
industrial
property
tax
replacement
6
claim
under
section
441.21A
shall
be
regarded
as
property
tax.
7
The
portion
of
the
payment
which
is
foundation
property
tax
8
shall
be
determined
by
applying
the
foundation
property
tax
9
rate
to
the
amount
computed
under
section
441.21A,
subsection
10
4,
paragraph
“a”
,
and
such
amount
shall
be
prorated
pursuant
to
11
section
441.21A,
subsection
2,
if
applicable.
12
Sec.
2.
Section
331.512,
Code
2013,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
13A.
Carry
out
duties
relating
to
the
15
calculation
and
payment
of
commercial
and
industrial
property
16
tax
replacement
claims
under
section
441.21A.
17
Sec.
3.
Section
331.559,
Code
2013,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
25A.
Carry
out
duties
relating
to
the
20
calculation
and
payment
of
commercial
and
industrial
property
21
tax
replacement
claims
under
section
441.21A.
22
Sec.
4.
Section
441.21,
subsection
4,
Code
2013,
is
amended
23
to
read
as
follows:
24
4.
For
valuations
established
as
of
January
1,
1979,
25
the
percentage
of
actual
value
at
which
agricultural
and
26
residential
property
shall
be
assessed
shall
be
the
quotient
27
of
the
dividend
and
divisor
as
defined
in
this
section
.
The
28
dividend
for
each
class
of
property
shall
be
the
dividend
29
as
determined
for
each
class
of
property
for
valuations
30
established
as
of
January
1,
1978,
adjusted
by
the
product
31
obtained
by
multiplying
the
percentage
determined
for
that
32
year
by
the
amount
of
any
additions
or
deletions
to
actual
33
value,
excluding
those
resulting
from
the
revaluation
of
34
existing
properties,
as
reported
by
the
assessors
on
the
35
-1-
LSB
1481HV
(2)
85
md/sc
1/
16
H.F.
609
abstracts
of
assessment
for
1978,
plus
six
percent
of
the
1
amount
so
determined.
However,
if
the
difference
between
the
2
dividend
so
determined
for
either
class
of
property
and
the
3
dividend
for
that
class
of
property
for
valuations
established
4
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
5
multiplying
the
percentage
determined
for
that
year
by
the
6
amount
of
any
additions
or
deletions
to
actual
value,
excluding
7
those
resulting
from
the
revaluation
of
existing
properties,
8
as
reported
by
the
assessors
on
the
abstracts
of
assessment
9
for
1978,
is
less
than
six
percent,
the
1979
dividend
for
the
10
other
class
of
property
shall
be
the
dividend
as
determined
for
11
that
class
of
property
for
valuations
established
as
of
January
12
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
13
the
percentage
determined
for
that
year
by
the
amount
of
14
any
additions
or
deletions
to
actual
value,
excluding
those
15
resulting
from
the
revaluation
of
existing
properties,
as
16
reported
by
the
assessors
on
the
abstracts
of
assessment
for
17
1978,
plus
a
percentage
of
the
amount
so
determined
which
is
18
equal
to
the
percentage
by
which
the
dividend
as
determined
19
for
the
other
class
of
property
for
valuations
established
20
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
21
multiplying
the
percentage
determined
for
that
year
by
the
22
amount
of
any
additions
or
deletions
to
actual
value,
excluding
23
those
resulting
from
the
revaluation
of
existing
properties,
24
as
reported
by
the
assessors
on
the
abstracts
of
assessment
25
for
1978,
is
increased
in
arriving
at
the
1979
dividend
for
26
the
other
class
of
property.
The
divisor
for
each
class
of
27
property
shall
be
the
total
actual
value
of
all
such
property
28
in
the
state
in
the
preceding
year,
as
reported
by
the
29
assessors
on
the
abstracts
of
assessment
submitted
for
1978,
30
plus
the
amount
of
value
added
to
said
total
actual
value
by
31
the
revaluation
of
existing
properties
in
1979
as
equalized
32
by
the
director
of
revenue
pursuant
to
section
441.49
.
The
33
director
shall
utilize
information
reported
on
abstracts
of
34
assessment
submitted
pursuant
to
section
441.45
in
determining
35
-2-
LSB
1481HV
(2)
85
md/sc
2/
16
H.F.
609
such
percentage.
For
valuations
established
as
of
January
1,
1
1980,
and
each
assessment
year
thereafter
beginning
before
2
January
1,
2013
,
the
percentage
of
actual
value
as
equalized
3
by
the
director
of
revenue
as
provided
in
section
441.49
at
4
which
agricultural
and
residential
property
shall
be
assessed
5
shall
be
calculated
in
accordance
with
the
methods
provided
6
herein
including
the
limitation
of
increases
in
agricultural
7
and
residential
assessed
values
to
the
percentage
increase
of
8
the
other
class
of
property
if
the
other
class
increases
less
9
than
the
allowable
limit
adjusted
to
include
the
applicable
10
and
current
values
as
equalized
by
the
director
of
revenue,
11
except
that
any
references
to
six
percent
in
this
subsection
12
shall
be
four
percent.
For
valuations
established
as
of
13
January
1,
2013,
and
each
assessment
year
thereafter,
the
14
percentage
of
actual
value
as
equalized
by
the
director
of
15
revenue
as
provided
in
section
441.49
at
which
agricultural
and
16
residential
property
shall
be
assessed
shall
be
calculated
in
17
accordance
with
the
methods
provided
in
this
subsection,
except
18
that
any
references
to
six
percent
in
this
subsection
shall
19
be
two
percent,
and
including,
for
assessment
years
beginning
20
on
or
after
January
1,
2013,
but
before
January
1,
2017,
21
the
limitation
of
increases
in
agricultural
and
residential
22
assessed
values
to
the
percentage
increase
of
the
other
23
class
of
property
if
the
other
class
increases
less
than
the
24
allowable
limit
adjusted
to
include
the
applicable
and
current
25
values
as
equalized
by
the
director
of
revenue,
and
including,
26
for
assessment
years
beginning
on
or
after
January
1,
2017,
the
27
limitation
in
subsection
5A.
28
Sec.
5.
Section
441.21,
subsection
5,
Code
2013,
is
amended
29
to
read
as
follows:
30
5.
a.
For
valuations
established
as
of
January
1,
1979,
31
commercial
property
and
industrial
property,
excluding
32
properties
referred
to
in
section
427A.1,
subsection
8
,
shall
33
be
assessed
as
a
percentage
of
the
actual
value
of
each
class
34
of
property.
The
percentage
shall
be
determined
for
each
35
-3-
LSB
1481HV
(2)
85
md/sc
3/
16
H.F.
609
class
of
property
by
the
director
of
revenue
for
the
state
in
1
accordance
with
the
provisions
of
this
section
.
For
valuations
2
established
as
of
January
1,
1979,
the
percentage
shall
be
3
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
4
section
.
The
dividend
for
each
class
of
property
shall
be
the
5
total
actual
valuation
for
each
class
of
property
established
6
for
1978,
plus
six
percent
of
the
amount
so
determined.
The
7
divisor
for
each
class
of
property
shall
be
the
valuation
8
for
each
class
of
property
established
for
1978,
as
reported
9
by
the
assessors
on
the
abstracts
of
assessment
for
1978,
10
plus
the
amount
of
value
added
to
the
total
actual
value
by
11
the
revaluation
of
existing
properties
in
1979
as
equalized
12
by
the
director
of
revenue
pursuant
to
section
441.49
.
For
13
valuations
established
as
of
January
1,
1979,
property
valued
14
by
the
department
of
revenue
pursuant
to
chapters
428
,
433
,
15
437
,
and
438
shall
be
considered
as
one
class
of
property
and
16
shall
be
assessed
as
a
percentage
of
its
actual
value.
The
17
percentage
shall
be
determined
by
the
director
of
revenue
in
18
accordance
with
the
provisions
of
this
section
.
For
valuations
19
established
as
of
January
1,
1979,
the
percentage
shall
be
20
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
21
section
.
The
dividend
shall
be
the
total
actual
valuation
22
established
for
1978
by
the
department
of
revenue,
plus
ten
23
percent
of
the
amount
so
determined.
The
divisor
for
property
24
valued
by
the
department
of
revenue
pursuant
to
chapters
428
,
25
433
,
437
,
and
438
shall
be
the
valuation
established
for
1978,
26
plus
the
amount
of
value
added
to
the
total
actual
value
by
27
the
revaluation
of
the
property
by
the
department
of
revenue
28
as
of
January
1,
1979.
For
valuations
established
as
of
29
January
1,
1980,
commercial
property
and
industrial
property,
30
excluding
properties
referred
to
in
section
427A.1,
subsection
31
8
,
shall
be
assessed
at
a
percentage
of
the
actual
value
of
32
each
class
of
property.
The
percentage
shall
be
determined
33
for
each
class
of
property
by
the
director
of
revenue
for
the
34
state
in
accordance
with
the
provisions
of
this
section
.
For
35
-4-
LSB
1481HV
(2)
85
md/sc
4/
16
H.F.
609
valuations
established
as
of
January
1,
1980,
the
percentage
1
shall
be
the
quotient
of
the
dividend
and
divisor
as
defined
in
2
this
section
.
The
dividend
for
each
class
of
property
shall
3
be
the
dividend
as
determined
for
each
class
of
property
for
4
valuations
established
as
of
January
1,
1979,
adjusted
by
the
5
product
obtained
by
multiplying
the
percentage
determined
6
for
that
year
by
the
amount
of
any
additions
or
deletions
to
7
actual
value,
excluding
those
resulting
from
the
revaluation
8
of
existing
properties,
as
reported
by
the
assessors
on
the
9
abstracts
of
assessment
for
1979,
plus
four
percent
of
the
10
amount
so
determined.
The
divisor
for
each
class
of
property
11
shall
be
the
total
actual
value
of
all
such
property
in
1979,
12
as
equalized
by
the
director
of
revenue
pursuant
to
section
13
441.49
,
plus
the
amount
of
value
added
to
the
total
actual
14
value
by
the
revaluation
of
existing
properties
in
1980.
The
15
director
shall
utilize
information
reported
on
the
abstracts
of
16
assessment
submitted
pursuant
to
section
441.45
in
determining
17
such
percentage.
For
valuations
established
as
of
January
1,
18
1980,
property
valued
by
the
department
of
revenue
pursuant
19
to
chapters
428
,
433
,
437
,
and
438
shall
be
assessed
at
a
20
percentage
of
its
actual
value.
The
percentage
shall
be
21
determined
by
the
director
of
revenue
in
accordance
with
the
22
provisions
of
this
section
.
For
valuations
established
as
23
of
January
1,
1980,
the
percentage
shall
be
the
quotient
of
24
the
dividend
and
divisor
as
defined
in
this
section
.
The
25
dividend
shall
be
the
total
actual
valuation
established
for
26
1979
by
the
department
of
revenue,
plus
eight
percent
of
the
27
amount
so
determined.
The
divisor
for
property
valued
by
the
28
department
of
revenue
pursuant
to
chapters
428
,
433
,
437
,
29
and
438
shall
be
the
valuation
established
for
1979,
plus
30
the
amount
of
value
added
to
the
total
actual
value
by
the
31
revaluation
of
the
property
by
the
department
of
revenue
as
32
of
January
1,
1980.
For
valuations
established
as
of
January
33
1,
1981,
and
each
assessment
year
thereafter
beginning
before
34
January
1,
2013
,
the
percentage
of
actual
value
as
equalized
35
-5-
LSB
1481HV
(2)
85
md/sc
5/
16
H.F.
609
by
the
director
of
revenue
as
provided
in
section
441.49
at
1
which
commercial
property
and
industrial
property,
excluding
2
properties
referred
to
in
section
427A.1,
subsection
8
,
shall
3
be
assessed
shall
be
calculated
in
accordance
with
the
methods
4
provided
herein,
except
that
any
references
to
six
percent
5
in
this
subsection
shall
be
four
percent.
For
valuations
6
established
as
of
January
1,
1981,
and
each
year
thereafter,
7
the
percentage
of
actual
value
at
which
property
valued
by
8
the
department
of
revenue
pursuant
to
chapters
428
,
433
,
437
,
9
and
438
shall
be
assessed
shall
be
calculated
in
accordance
10
with
the
methods
provided
herein,
except
that
any
references
11
to
ten
percent
in
this
subsection
shall
be
eight
percent.
12
Beginning
with
valuations
established
as
of
January
1,
1979,
13
and
each
assessment
year
thereafter
beginning
before
January
14
1,
2013
,
property
valued
by
the
department
of
revenue
pursuant
15
to
chapter
434
shall
also
be
assessed
at
a
percentage
of
its
16
actual
value
which
percentage
shall
be
equal
to
the
percentage
17
determined
by
the
director
of
revenue
for
commercial
property,
18
industrial
property,
or
property
valued
by
the
department
of
19
revenue
pursuant
to
chapters
428
,
433
,
437
,
and
438
,
whichever
20
is
lowest.
For
valuations
established
on
or
after
January
21
1,
2013,
but
before
January
1,
2017,
commercial
property
and
22
industrial
property
shall
be
assessed
as
provided
in
paragraphs
23
“b”
and
“c”
,
as
applicable.
For
valuations
established
as
24
of
January
1,
2017,
and
each
assessment
year
thereafter,
the
25
percentage
of
actual
value
as
equalized
by
the
director
of
26
revenue
as
provided
in
section
441.49
at
which
commercial
27
property
shall
be
assessed
shall
be
calculated
in
accordance
28
with
the
methods
provided
in
this
subsection,
including
the
29
limitation
in
subsection
5A,
except
that
any
references
to
30
six
percent
in
this
subsection
shall
be
two
percent.
For
31
valuations
established
on
or
after
January
1,
2017,
industrial
32
property
shall
be
assessed
at
a
percentage
of
its
actual
value
33
equal
to
the
percentage
of
actual
value
at
which
property
34
assessed
as
commercial
property
is
assessed
for
the
same
35
-6-
LSB
1481HV
(2)
85
md/sc
6/
16
H.F.
609
assessment
year
following
application
of
the
limitation
in
1
subsection
5A,
if
applicable.
For
valuations
established
on
2
or
after
January
1,
2013,
property
valued
by
the
department
3
of
revenue
pursuant
to
chapter
434
shall
be
assessed
at
a
4
percentage
of
its
actual
value
equal
to
the
percentage
of
5
actual
value
at
which
property
assessed
as
commercial
property
6
is
assessed
for
the
same
assessment
year
following
application
7
of
the
limitation
in
subsection
5A,
if
applicable.
8
b.
For
valuations
established
on
or
after
January
1,
2013,
9
but
before
January
1,
2017,
commercial
property,
excluding
10
properties
referred
to
in
section
427A.1,
subsection
8,
shall
11
be
assessed
at
a
percentage
of
its
actual
value,
as
determined
12
in
this
paragraph
“b”
.
For
valuations
established
for
the
13
assessment
year
beginning
January
1,
2013,
the
percentage
14
of
actual
value
as
equalized
by
the
director
of
revenue
as
15
provided
in
section
441.49
at
which
commercial
property
shall
16
be
assessed
shall
be
ninety-five
percent.
For
valuations
17
established
for
the
assessment
year
beginning
January
1,
2014,
18
the
percentage
of
actual
value
as
equalized
by
the
director
19
of
revenue
as
provided
in
section
441.49
at
which
commercial
20
property
shall
be
assessed
shall
be
ninety
percent.
For
21
valuations
established
for
the
assessment
year
beginning
22
January
1,
2015,
the
percentage
of
actual
value
as
equalized
by
23
the
director
of
revenue
as
provided
in
section
441.49
at
which
24
commercial
property
shall
be
assessed
shall
be
eighty-five
25
percent.
For
valuations
established
for
the
assessment
year
26
beginning
January
1,
2016,
the
percentage
of
actual
value
as
27
equalized
by
the
director
of
revenue
as
provided
in
section
28
441.49
at
which
commercial
property
shall
be
assessed
shall
be
29
eighty
percent.
30
c.
For
valuations
established
on
or
after
January
1,
2013,
31
but
before
January
1,
2017,
industrial
property,
excluding
32
properties
referred
to
in
section
427A.1,
subsection
8,
shall
33
be
assessed
at
a
percentage
of
its
actual
value,
as
determined
34
in
this
paragraph
“c”
.
For
valuations
established
for
the
35
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assessment
year
beginning
January
1,
2013,
the
percentage
1
of
actual
value
as
equalized
by
the
director
of
revenue
as
2
provided
in
section
441.49
at
which
industrial
property
shall
3
be
assessed
shall
be
ninety-five
percent.
For
valuations
4
established
for
the
assessment
year
beginning
January
1,
2014,
5
the
percentage
of
actual
value
as
equalized
by
the
director
6
of
revenue
as
provided
in
section
441.49
at
which
industrial
7
property
shall
be
assessed
shall
be
ninety
percent.
For
8
valuations
established
for
the
assessment
year
beginning
9
January
1,
2015,
the
percentage
of
actual
value
as
equalized
by
10
the
director
of
revenue
as
provided
in
section
441.49
at
which
11
industrial
property
shall
be
assessed
shall
be
eighty-five
12
percent.
For
valuations
established
for
the
assessment
year
13
beginning
January
1,
2016,
the
percentage
of
actual
value
as
14
equalized
by
the
director
of
revenue
as
provided
in
section
15
441.49
at
which
industrial
property
shall
be
assessed
shall
be
16
eighty
percent.
17
Sec.
6.
Section
441.21,
Code
2013,
is
amended
by
adding
the
18
following
new
subsection:
19
NEW
SUBSECTION
.
5A.
In
addition
to
the
limitation
20
of
increases
for
agricultural
and
residential
property
21
applicable
under
subsection
4
and
the
limitation
of
increase
22
for
commercial
property
applicable
under
subsection
5,
for
23
valuations
established
for
the
assessment
year
beginning
24
January
1,
2017,
and
each
assessment
year
thereafter,
for
25
residential,
agricultural,
and
commercial
property,
the
26
assessed
value
of
each
of
these
three
classes
of
property
shall
27
be
limited
to
the
percentage
increase
of
that
class
of
property
28
that
is
the
lowest
percentage
increase
under
the
allowable
29
limit
adjusted
to
include
the
applicable
and
current
values
as
30
equalized
by
the
director
of
revenue.
31
Sec.
7.
NEW
SECTION
.
441.21A
Commercial
and
industrial
32
property
tax
replacement
——
replacement
claims.
33
1.
a.
For
each
fiscal
year
beginning
on
or
after
July
34
1,
2014,
there
is
appropriated
from
the
general
fund
of
the
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state
to
the
department
of
revenue
an
amount
necessary
for
1
the
payment
of
all
commercial
and
industrial
property
tax
2
replacement
claims
under
this
section
for
the
fiscal
year.
3
However,
for
a
fiscal
year
beginning
on
or
after
July
1,
2018,
4
the
total
amount
of
moneys
appropriated
from
the
general
fund
5
of
the
state
to
the
department
of
revenue
for
the
payment
6
of
commercial
and
industrial
property
tax
replacement
claims
7
in
that
fiscal
year
shall
not
exceed
the
total
amount
of
8
money
that
was
necessary
to
pay
all
commercial
and
industrial
9
property
tax
replacement
claims
for
the
fiscal
year
beginning
10
July
1,
2017.
11
b.
Moneys
appropriated
by
the
general
assembly
to
the
12
department
under
this
subsection
for
the
payment
of
commercial
13
and
industrial
property
tax
replacement
claims
are
not
subject
14
to
a
uniform
reduction
in
appropriations
in
accordance
with
15
section
8.31.
16
2.
Beginning
with
the
fiscal
year
beginning
July
1,
2014,
17
each
county
treasurer
shall
be
paid
by
the
department
of
18
revenue
an
amount
equal
to
the
amount
of
the
commercial
and
19
industrial
property
tax
replacement
claims
in
the
county,
as
20
calculated
in
subsection
4.
For
fiscal
years
beginning
on
or
21
after
July
1,
2018,
if
an
amount
appropriated
for
a
fiscal
year
22
is
insufficient
to
pay
all
replacement
claims,
the
director
of
23
revenue
shall
prorate
the
payment
of
replacement
claims
to
the
24
county
treasurers
and
shall
notify
the
county
auditors
of
the
25
pro
rata
percentage
on
or
before
September
30.
26
3.
On
or
before
July
1
of
each
fiscal
year
beginning
on
or
27
after
July
1,
2014,
the
assessor
shall
report
to
the
county
28
auditor
the
total
actual
value
of
all
commercial
property
and
29
industrial
property
in
the
county
for
the
assessment
year
used
30
to
calculate
the
taxes
due
and
payable
in
that
fiscal
year.
31
4.
On
or
before
a
date
established
by
rule
of
the
department
32
of
revenue
of
each
fiscal
year
beginning
on
or
after
July
1,
33
2014,
the
county
auditor
shall
prepare
a
statement,
based
upon
34
the
report
received
pursuant
to
subsection
3,
listing
for
each
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taxing
district
in
the
county:
1
a.
The
difference
between
the
assessed
valuation
of
all
2
commercial
property
and
industrial
property
for
the
assessment
3
year
used
to
calculate
taxes
which
are
due
and
payable
in
the
4
applicable
fiscal
year
and
the
actual
value
of
all
commercial
5
property
and
industrial
property
for
the
same
assessment
year.
6
If
the
difference
between
the
assessed
value
of
all
commercial
7
property
and
industrial
property
and
the
actual
valuation
of
8
all
commercial
property
and
industrial
property
is
zero,
there
9
is
no
tax
replacement
for
that
taxing
district
for
the
fiscal
10
year.
11
b.
The
tax
levy
rate
per
one
thousand
dollars
of
assessed
12
value
for
each
taxing
district
for
that
fiscal
year.
13
c.
The
commercial
and
industrial
property
tax
replacement
14
claim
for
each
taxing
district.
The
replacement
claim
is
equal
15
to
the
amount
determined
pursuant
to
paragraph
“a”
,
multiplied
16
by
the
tax
rate
specified
in
paragraph
“b”
,
and
then
divided
by
17
one
thousand
dollars.
18
5.
For
purposes
of
computing
replacement
amounts
under
19
this
section,
that
portion
of
an
urban
renewal
area
defined
as
20
the
sum
of
the
assessed
valuations
defined
in
section
403.19,
21
subsections
1
and
2,
shall
be
considered
a
taxing
district.
22
6.
a.
The
county
auditor
shall
certify
and
forward
one
copy
23
of
the
statement
to
the
department
of
revenue
not
later
than
24
a
date
of
each
year
established
by
the
department
of
revenue
25
by
rule.
26
b.
The
replacement
claims
shall
be
paid
to
each
county
27
treasurer
in
equal
installments
in
September
and
March
of
each
28
year.
The
county
treasurer
shall
apportion
the
replacement
29
claim
payments
among
the
eligible
taxing
districts
in
the
30
county.
31
c.
If
the
taxing
district
is
an
urban
renewal
area,
the
32
amount
of
the
replacement
claim
shall
be
apportioned
and
33
credited
to
those
portions
of
the
assessed
value
defined
in
34
section
403.19,
subsections
1
and
2,
as
follows:
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(1)
To
that
portion
defined
in
section
403.19,
subsection
1
1,
an
amount
of
the
replacement
claim
that
is
proportionate
to
2
the
amount
of
actual
value
of
the
commercial
and
industrial
3
property
in
the
urban
renewal
area
as
determined
in
section
4
403.19,
subsection
1,
that
was
subtracted
pursuant
to
section
5
403.20,
as
it
bears
to
the
total
amount
of
actual
value
of
6
the
commercial
and
industrial
property
in
the
urban
renewal
7
area
that
was
subtracted
pursuant
to
section
403.20
for
the
8
assessment
year
for
property
taxes
due
and
payable
in
the
9
fiscal
year
for
which
the
replacement
claim
is
computed.
10
(2)
To
that
portion
defined
in
section
403.19,
subsection
2,
11
the
remaining
amount,
if
any.
12
d.
Notwithstanding
the
allocation
provisions
of
paragraph
13
“c”
,
the
amount
of
the
tax
replacement
amount
that
shall
be
14
allocated
to
that
portion
of
the
assessed
value
defined
in
15
section
403.19,
subsection
2,
shall
not
exceed
the
amount
equal
16
to
the
amount
certified
to
the
county
auditor
under
section
17
403.19
for
the
fiscal
year
in
which
the
claim
is
paid,
after
18
deduction
of
the
amount
of
other
revenues
committed
for
payment
19
on
that
amount
for
the
fiscal
year.
The
amount
not
allocated
20
to
that
portion
of
the
assessed
value
defined
in
section
21
403.19,
subsection
2,
as
a
result
of
the
operation
of
this
22
paragraph,
shall
be
allocated
to
that
portion
of
assessed
value
23
defined
in
section
403.19,
subsection
1.
24
e.
The
amount
of
the
replacement
claim
amount
credited
to
25
the
portion
of
the
assessed
value
defined
in
section
403.19,
26
subsection
1,
shall
be
allocated
to
and
when
received
be
paid
27
into
the
fund
for
the
respective
taxing
district
as
taxes
by
28
or
for
the
taxing
district
into
which
all
other
property
taxes
29
are
paid.
The
amount
of
the
replacement
claim
amount
credited
30
to
the
portion
of
the
assessed
value
defined
in
section
403.19,
31
subsection
2,
shall
be
allocated
to
and
when
collected
be
paid
32
into
the
special
fund
of
the
municipality
under
section
403.19,
33
subsection
2.
34
Sec.
8.
SAVINGS
PROVISION.
This
division
of
this
Act,
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pursuant
to
section
4.13,
does
not
affect
the
operation
of,
1
or
prohibit
the
application
of,
prior
provisions
of
section
2
441.21,
or
rules
adopted
under
chapter
17A
to
administer
prior
3
provisions
of
section
441.21,
for
assessment
years
beginning
4
before
January
1,
2013,
and
for
duties,
powers,
protests,
5
appeals,
proceedings,
actions,
or
remedies
attributable
to
an
6
assessment
year
beginning
before
January
1,
2013.
7
Sec.
9.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
8
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
9
enactment.
10
Sec.
10.
RETROACTIVE
APPLICABILITY.
This
division
of
this
11
Act
applies
retroactively
to
January
1,
2013,
for
assessment
12
years
beginning
on
or
after
that
date.
13
DIVISION
II
14
SCHOOL
DISTRICT
FUNDING
15
Sec.
11.
Section
257.1,
subsection
2,
paragraph
b,
Code
16
2013,
is
amended
by
striking
the
paragraph
and
inserting
in
17
lieu
thereof
the
following:
18
b.
(1)
The
regular
program
foundation
base
per
pupil
is
the
19
following:
20
(a)
For
the
budget
year
commencing
July
1,
2012,
and
the
21
budget
year
commencing
July
1,
2013,
the
regular
program
22
foundation
base
per
pupil
is
eighty-seven
and
five-tenths
23
percent
of
the
regular
program
state
cost
per
pupil.
24
(b)
For
the
budget
year
commencing
July
1,
2014,
the
regular
25
program
foundation
base
per
pupil
is
eighty-nine
and
three
26
hundred
seventy-five
thousandths
percent
of
the
regular
program
27
state
cost
per
pupil.
28
(c)
For
the
budget
year
commencing
July
1,
2015,
the
regular
29
program
foundation
base
per
pupil
is
ninety-one
and
twenty-five
30
hundredths
percent
of
the
regular
program
state
cost
per
pupil.
31
(d)
For
the
budget
year
commencing
July
1,
2016,
the
regular
32
program
foundation
base
per
pupil
is
ninety-three
and
one
33
hundred
twenty-five
thousandths
percent
of
the
regular
program
34
state
cost
per
pupil.
35
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(e)
For
the
budget
year
commencing
July
1,
2017,
and
1
succeeding
budget
years,
the
regular
program
foundation
base
2
per
pupil
is
ninety-five
percent
of
the
regular
program
state
3
cost
per
pupil.
4
(2)
For
each
budget
year,
the
special
education
support
5
services
foundation
base
is
seventy-nine
percent
of
the
special
6
education
support
services
state
cost
per
pupil.
The
combined
7
foundation
base
is
the
sum
of
the
regular
program
foundation
8
base,
the
special
education
support
services
foundation
base,
9
the
total
teacher
salary
supplement
district
cost,
the
total
10
professional
development
supplement
district
cost,
the
total
11
early
intervention
supplement
district
cost,
the
total
area
12
education
agency
teacher
salary
supplement
district
cost,
13
and
the
total
area
education
agency
professional
development
14
supplement
district
cost.
15
EXPLANATION
16
This
bill
relates
to
state
and
local
government
finances
17
by
modifying
property
assessment
limitations,
providing
for
18
commercial
and
industrial
property
tax
replacement
payments,
19
and
by
increasing
the
regular
program
foundation
base
20
percentage.
21
Division
I
of
the
bill
changes
the
property
tax
assessment
22
limitation
percentage
for
residential
property
and
agricultural
23
property
from
4
percent
to
2
percent
for
assessment
years
24
beginning
on
or
after
January
1,
2013.
25
Division
I
of
the
bill
modifies
the
methodology
in
Code
26
section
441.21(5)
currently
used
to
determine
the
percentage
27
of
actual
value
at
which
commercial
property
and
industrial
28
property
are
assessed
for
property
tax
purposes.
The
bill
29
provides
that
for
valuations
established
for
the
assessment
30
year
beginning
January
1,
2013,
the
percentage
of
actual
value
31
at
which
commercial
and
industrial
property
are
assessed
is
32
95
percent.
For
the
assessment
year
beginning
January
1,
33
2014,
the
percentage
of
actual
value
at
which
commercial
and
34
industrial
property
are
assessed
is
90
percent.
For
the
35
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assessment
year
beginning
January
1,
2015,
the
percentage
of
1
actual
value
at
which
commercial
and
industrial
property
are
2
assessed
is
85
percent.
For
the
assessment
year
beginning
3
January
1,
2016,
the
percentage
of
actual
value
at
which
4
commercial
and
industrial
property
are
assessed
is
80
percent.
5
For
assessment
years
beginning
on
or
after
January
1,
2017,
6
the
percentage
of
actual
value
at
which
commercial
property
is
7
assessed
shall
be
calculated
in
accordance
with
the
methodology
8
used
to
determine
the
percentage
at
which
commercial
property
9
is
assessed
for
assessment
years
beginning
before
January
1,
10
2013,
except
that
the
percentage
of
permissible
assessed
value
11
growth
is
changed
from
4
percent
to
2
percent.
For
assessment
12
years
beginning
on
or
after
January
1,
2017,
the
percentage
of
13
actual
value
at
which
industrial
property
is
assessed
shall
be
14
equal
to
the
percentage
of
actual
value
at
which
commercial
15
property
is
assessed
for
the
same
assessment
year.
16
Division
I
of
the
bill
also
provides
that
for
assessment
17
years
beginning
on
or
after
January
1,
2017,
in
addition
to
the
18
limitations
on
the
growth
in
taxable
value
for
agricultural
19
and
residential
property
in
Code
section
441.21(4)
and
20
commercial
property
in
Code
section
441.21(5),
for
residential,
21
agricultural,
and
commercial
property,
the
assessed
value
of
22
each
of
these
three
classes
of
property
shall
be
limited
to
23
the
percentage
increase
of
that
class
of
property
that
is
the
24
lowest
percentage
increase
under
the
allowable
limit.
25
Division
I
of
the
bill
provides
that
for
valuations
26
established
on
or
after
January
1,
2013,
property
valued
by
the
27
department
of
revenue
pursuant
to
Code
chapter
434
(railway
28
property)
is
assessed
at
a
percentage
of
its
actual
value
equal
29
to
the
percentage
of
actual
value
at
which
commercial
property
30
is
assessed
for
the
same
assessment
year.
31
Division
I
of
the
bill
provides
for
commercial
and
32
industrial
property
tax
replacement
payments
in
new
Code
33
section
441.21A.
For
the
fiscal
year
beginning
July
1,
2014,
34
and
each
fiscal
year
thereafter,
the
bill
appropriates
from
35
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the
general
fund
of
the
state
to
the
department
of
revenue
an
1
amount
necessary
to
pay
all
commercial
and
industrial
property
2
tax
replacement
claims
for
that
fiscal
year.
However,
in
no
3
fiscal
year
beginning
on
or
after
July
1,
2018,
shall
the
total
4
amount
of
money
appropriated
from
the
general
fund
of
the
5
state
for
the
payment
of
commercial
and
industrial
property
6
tax
replacement
claims
in
that
fiscal
year
exceed
the
total
7
amount
of
money
that
was
necessary
to
pay
all
commercial
and
8
industrial
property
tax
replacement
payments
for
the
fiscal
9
year
beginning
July
1,
2017.
10
Division
I
of
the
bill
provides
that
moneys
appropriated
11
by
the
general
assembly
to
the
department
of
revenue
under
12
new
Code
section
441.21A
for
the
payment
of
commercial
and
13
industrial
property
tax
replacement
claims
are
not
subject
to
14
a
uniform
reduction
in
appropriations
in
accordance
with
Code
15
section
8.31.
16
For
fiscal
years
beginning
on
or
after
July
1,
2018,
if
17
an
amount
appropriated
to
the
department
of
revenue
for
a
18
fiscal
year
is
insufficient
to
pay
all
replacement
claims,
the
19
director
of
revenue
shall
prorate
the
replacement
payments
to
20
the
county
treasurers
and
shall
notify
the
county
auditors
of
21
the
pro
rata
percentage
on
or
before
September
30.
22
Division
I
of
the
bill
requires
the
assessor
to
report
to
23
the
county
auditor,
on
or
before
July
1
of
each
fiscal
year
24
beginning
on
or
after
July
1,
2014,
the
total
assessed
value
25
of
all
commercial
property
and
industrial
property
for
taxes
26
due
and
payable
in
that
fiscal
year.
On
or
before
a
date
27
established
by
the
department
of
revenue,
the
county
auditor
28
prepares
a
statement,
based
upon
the
report
listing
for
each
29
taxing
district
in
the
county
the
difference
between
assessed
30
and
actual
values
of
such
property
located
in
the
taxing
31
district,
the
tax
levy
rate
per
$1,000
of
assessed
value
for
32
each
taxing
district,
and
the
property
tax
replacement
claim
33
for
each
taxing
district.
The
replacement
claim
is
equal
to
34
the
difference
between
the
assessed
valuation
of
all
such
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property
located
in
the
taxing
district
and
assessed
for
the
1
applicable
assessment
year
and
the
total
actual
value
of
all
2
such
property
located
in
the
taxing
district
for
the
same
3
assessment
year,
multiplied
by
the
tax
rate
per
$1,000
of
4
assessed
value
specified
for
the
taxing
district,
and
then
5
divided
by
$1,000.
If
the
difference
between
the
actual
and
6
assessed
values
is
zero,
there
is
no
replacement
claim
for
the
7
taxing
district
for
that
year.
8
Replacement
claims
are
paid
to
each
county
treasurer
in
9
equal
installments
in
September
and
March
of
each
year.
The
10
county
treasurer
apportions
the
replacement
claim
payments
11
among
the
eligible
taxing
districts
in
the
county.
12
Division
I
of
the
bill
defines
a
tax
increment
financing
13
district
in
an
urban
renewal
area
as
a
taxing
district
for
14
purposes
of
allocation
of
replacement
moneys
and
provides
for
15
the
method
of
allocation
in
those
districts.
16
Division
I
of
the
bill,
pursuant
to
Code
section
4.13,
does
17
not
affect
the
application
of
prior
provisions
of
Code
section
18
441.21
to
assessment
years
beginning
before
January
1,
2013.
19
Division
I
of
the
bill
takes
effect
upon
enactment
and
20
applies
retroactively
to
January
1,
2013,
for
assessment
years
21
beginning
on
or
after
that
date.
22
Division
II
of
the
bill
provides
for
an
increase
in
the
23
regular
program
foundation
base
under
the
state
school
24
foundation
program.
The
regular
program
foundation
base
is
25
the
specified
percentage
of
the
regular
state
program
cost
26
per
pupil
calculation
which
is
paid
as
state
aid
to
school
27
districts,
above
and
beyond
the
uniform
property
tax
levy
28
imposed
in
Code
section
257.3.
Beginning
with
the
budget
29
year
commencing
July
1,
2014,
the
increase
is
phased
in
over
30
a
period
of
years
from
the
current
regular
program
foundation
31
base
level
of
87.5
percent
of
the
regular
program
state
32
cost
per
pupil
to
the
level
of
95
percent
for
budget
years
33
commencing
on
or
after
July
1,
2017.
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