House Study Bill 150 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR’S BILL) A BILL FOR An Act relating to property taxation by establishing and 1 modifying property assessment limitations, providing for 2 commercial and industrial property tax replacement payments, 3 making appropriations, and including effective date and 4 retroactive applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1481XL (9) 85 md/sc

S.F. _____ H.F. _____ Section 1. Section 257.3, subsection 1, Code 2013, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . d. The amount paid to each school district 3 for the commercial and industrial property tax replacement 4 claim under section 441.21A shall be regarded as property tax. 5 The portion of the payment which is foundation property tax 6 shall be determined by applying the foundation property tax 7 rate to the amount computed under section 441.21A, subsection 8 4, paragraph “a” , and such amount shall be prorated pursuant to 9 section 441.21A, subsection 2, if applicable. 10 Sec. 2. Section 331.512, Code 2013, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 13A. Carry out duties relating to the 13 calculation and payment of commercial and industrial property 14 tax replacement claims under section 441.21A. 15 Sec. 3. Section 331.559, Code 2013, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 25A. Carry out duties relating to the 18 calculation and payment of commercial and industrial property 19 tax replacement claims under section 441.21A. 20 Sec. 4. Section 441.21, subsection 4, Code 2013, is amended 21 to read as follows: 22 4. For valuations established as of January 1, 1979, 23 the percentage of actual value at which agricultural and 24 residential property shall be assessed shall be the quotient 25 of the dividend and divisor as defined in this section . The 26 dividend for each class of property shall be the dividend 27 as determined for each class of property for valuations 28 established as of January 1, 1978, adjusted by the product 29 obtained by multiplying the percentage determined for that 30 year by the amount of any additions or deletions to actual 31 value, excluding those resulting from the revaluation of 32 existing properties, as reported by the assessors on the 33 abstracts of assessment for 1978, plus six percent of the 34 amount so determined. However, if the difference between the 35 -1- LSB 1481XL (9) 85 md/sc 1/ 15

S.F. _____ H.F. _____ dividend so determined for either class of property and the 1 dividend for that class of property for valuations established 2 as of January 1, 1978, adjusted by the product obtained by 3 multiplying the percentage determined for that year by the 4 amount of any additions or deletions to actual value, excluding 5 those resulting from the revaluation of existing properties, 6 as reported by the assessors on the abstracts of assessment 7 for 1978, is less than six percent, the 1979 dividend for the 8 other class of property shall be the dividend as determined for 9 that class of property for valuations established as of January 10 1, 1978, adjusted by the product obtained by multiplying 11 the percentage determined for that year by the amount of 12 any additions or deletions to actual value, excluding those 13 resulting from the revaluation of existing properties, as 14 reported by the assessors on the abstracts of assessment for 15 1978, plus a percentage of the amount so determined which is 16 equal to the percentage by which the dividend as determined 17 for the other class of property for valuations established 18 as of January 1, 1978, adjusted by the product obtained by 19 multiplying the percentage determined for that year by the 20 amount of any additions or deletions to actual value, excluding 21 those resulting from the revaluation of existing properties, 22 as reported by the assessors on the abstracts of assessment 23 for 1978, is increased in arriving at the 1979 dividend for 24 the other class of property. The divisor for each class of 25 property shall be the total actual value of all such property 26 in the state in the preceding year, as reported by the 27 assessors on the abstracts of assessment submitted for 1978, 28 plus the amount of value added to said total actual value by 29 the revaluation of existing properties in 1979 as equalized 30 by the director of revenue pursuant to section 441.49 . The 31 director shall utilize information reported on abstracts of 32 assessment submitted pursuant to section 441.45 in determining 33 such percentage. For valuations established as of January 1, 34 1980, and each assessment year thereafter beginning before 35 -2- LSB 1481XL (9) 85 md/sc 2/ 15

S.F. _____ H.F. _____ January 1, 2013 , the percentage of actual value as equalized 1 by the director of revenue as provided in section 441.49 at 2 which agricultural and residential property shall be assessed 3 shall be calculated in accordance with the methods provided 4 herein including the limitation of increases in agricultural 5 and residential assessed values to the percentage increase of 6 the other class of property if the other class increases less 7 than the allowable limit adjusted to include the applicable 8 and current values as equalized by the director of revenue, 9 except that any references to six percent in this subsection 10 shall be four percent. For valuations established as of 11 January 1, 2013, and each assessment year thereafter, the 12 percentage of actual value as equalized by the director of 13 revenue as provided in section 441.49 at which agricultural 14 and residential property shall be assessed shall be calculated 15 in accordance with the methods provided in this subsection, 16 except that any references to six percent in this subsection 17 shall be two percent, and including, for assessment years 18 beginning on or after January 1, 2013, but before January 19 1, 2017, the limitation of increases in agricultural and 20 residential assessed values to the percentage increase of the 21 other class of property if the other class increases less than 22 the allowable limit adjusted to include the applicable and 23 current values as equalized by the director of revenue, and for 24 assessment years beginning on or after January 1, 2017, the 25 limitation in subsection 5A. 26 Sec. 5. Section 441.21, subsection 5, Code 2013, is amended 27 to read as follows: 28 5. a. For valuations established as of January 1, 1979, 29 commercial property and industrial property, excluding 30 properties referred to in section 427A.1, subsection 8 , shall 31 be assessed as a percentage of the actual value of each class 32 of property. The percentage shall be determined for each 33 class of property by the director of revenue for the state in 34 accordance with the provisions of this section . For valuations 35 -3- LSB 1481XL (9) 85 md/sc 3/ 15

S.F. _____ H.F. _____ established as of January 1, 1979, the percentage shall be 1 the quotient of the dividend and divisor as defined in this 2 section . The dividend for each class of property shall be the 3 total actual valuation for each class of property established 4 for 1978, plus six percent of the amount so determined. The 5 divisor for each class of property shall be the valuation 6 for each class of property established for 1978, as reported 7 by the assessors on the abstracts of assessment for 1978, 8 plus the amount of value added to the 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 . For 11 valuations established as of January 1, 1979, property valued 12 by the department of revenue pursuant to chapters 428 , 433 , 13 437 , and 438 shall be considered as one class of property and 14 shall be assessed as a percentage of its actual value. The 15 percentage shall be determined by the director of revenue in 16 accordance with the provisions of this section . For valuations 17 established as of January 1, 1979, the percentage shall be 18 the quotient of the dividend and divisor as defined in this 19 section . The dividend shall be the total actual valuation 20 established for 1978 by the department of revenue, plus ten 21 percent of the amount so determined. The divisor for property 22 valued by the department of revenue pursuant to chapters 428 , 23 433 , 437 , and 438 shall be the valuation established for 1978, 24 plus the amount of value added to the total actual value by 25 the revaluation of the property by the department of revenue 26 as of January 1, 1979. For valuations established as of 27 January 1, 1980, commercial property and industrial property, 28 excluding properties referred to in section 427A.1, subsection 29 8 , shall be assessed at a percentage of the actual value of 30 each class of property. The percentage shall be determined 31 for each class of property by the director of revenue for the 32 state in accordance with the provisions of this section . For 33 valuations established as of January 1, 1980, the percentage 34 shall be the quotient of the dividend and divisor as defined in 35 -4- LSB 1481XL (9) 85 md/sc 4/ 15

S.F. _____ H.F. _____ this section . The dividend for each class of property shall 1 be the dividend as determined for each class of property for 2 valuations established as of January 1, 1979, adjusted by the 3 product obtained by multiplying the percentage determined 4 for that year by the amount of any additions or deletions to 5 actual value, excluding those resulting from the revaluation 6 of existing properties, as reported by the assessors on the 7 abstracts of assessment for 1979, plus four percent of the 8 amount so determined. The divisor for each class of property 9 shall be the total actual value of all such property in 1979, 10 as equalized by the director of revenue pursuant to section 11 441.49 , plus the amount of value added to the total actual 12 value by the revaluation of existing properties in 1980. The 13 director shall utilize information reported on the abstracts of 14 assessment submitted pursuant to section 441.45 in determining 15 such percentage. For valuations established as of January 1, 16 1980, property valued by the department of revenue pursuant 17 to chapters 428 , 433 , 437 , and 438 shall be assessed at a 18 percentage of its actual value. The percentage shall be 19 determined by the director of revenue in accordance with the 20 provisions of this section . For valuations established as 21 of January 1, 1980, the percentage shall be the quotient of 22 the dividend and divisor as defined in this section . The 23 dividend shall be the total actual valuation established for 24 1979 by the department of revenue, plus eight percent of the 25 amount so determined. The divisor for property valued by the 26 department of revenue pursuant to chapters 428 , 433 , 437 , 27 and 438 shall be the valuation established for 1979, plus 28 the amount of value added to the total actual value by the 29 revaluation of the property by the department of revenue as 30 of January 1, 1980. For valuations established as of January 31 1, 1981, and each assessment year thereafter beginning before 32 January 1, 2013 , the percentage of actual value as equalized 33 by the director of revenue as provided in section 441.49 at 34 which commercial property and industrial property, excluding 35 -5- LSB 1481XL (9) 85 md/sc 5/ 15

S.F. _____ H.F. _____ properties referred to in section 427A.1, subsection 8 , shall 1 be assessed shall be calculated in accordance with the methods 2 provided herein, except that any references to six percent 3 in this subsection shall be four percent. For valuations 4 established as of January 1, 1981, and each year thereafter, 5 the percentage of actual value at which property valued by 6 the department of revenue pursuant to chapters 428 , 433 , 437 , 7 and 438 shall be assessed shall be calculated in accordance 8 with the methods provided herein, except that any references 9 to ten percent in this subsection shall be eight percent. 10 Beginning with valuations established as of January 1, 1979, 11 and each assessment year thereafter beginning before January 12 1, 2013 , property valued by the department of revenue pursuant 13 to chapter 434 shall also be assessed at a percentage of its 14 actual value which percentage shall be equal to the percentage 15 determined by the director of revenue for commercial property, 16 industrial property, or property valued by the department of 17 revenue pursuant to chapters 428 , 433 , 437 , and 438 , whichever 18 is lowest. For valuations established as of January 1, 2017, 19 and each assessment year thereafter, the percentage of actual 20 value as equalized by the director of revenue as provided in 21 section 441.49 at which commercial and industrial property 22 shall be assessed shall be calculated in accordance with the 23 methods provided in this subsection, including the limitation 24 in subsection 5A, except that any references to six percent 25 in this subsection shall be two percent. For valuations 26 established on or after January 1, 2013, property valued by the 27 department of revenue pursuant to chapter 434 shall be assessed 28 at a percentage of its actual value equal to the percentage of 29 actual value at which property assessed as commercial property 30 is assessed for the same assessment year following application 31 of the limitation in subsection 5A, if applicable. 32 b. For valuations established on or after January 1, 2013, 33 but before January 1, 2017, commercial property, excluding 34 properties referred to in section 427A.1, subsection 8, shall 35 -6- LSB 1481XL (9) 85 md/sc 6/ 15

S.F. _____ H.F. _____ be assessed at a percentage of its actual value, as determined 1 in this paragraph “b” . For valuations established for the 2 assessment year beginning January 1, 2013, the percentage 3 of actual value as equalized by the director of revenue as 4 provided in section 441.49 at which commercial property shall 5 be assessed shall be ninety-five percent. For valuations 6 established for the assessment year beginning January 1, 2014, 7 the percentage of actual value as equalized by the director 8 of revenue as provided in section 441.49 at which commercial 9 property shall be assessed shall be ninety percent. For 10 valuations established for the assessment year beginning 11 January 1, 2015, the percentage of actual value as equalized by 12 the director of revenue as provided in section 441.49 at which 13 commercial property shall be assessed shall be eighty-five 14 percent. For valuations established for the assessment year 15 beginning January 1, 2016, the percentage of actual value as 16 equalized by the director of revenue as provided in section 17 441.49 at which commercial property shall be assessed shall be 18 eighty percent. 19 c. For valuations established on or after January 1, 2013, 20 but before January 1, 2017, industrial property, excluding 21 properties referred to in section 427A.1, subsection 8, shall 22 be assessed at a percentage of its actual value, as determined 23 in this paragraph “c” . For valuations established for the 24 assessment year beginning January 1, 2013, the percentage 25 of actual value as equalized by the director of revenue as 26 provided in section 441.49 at which industrial property shall 27 be assessed shall be ninety-five percent. For valuations 28 established for the assessment year beginning January 1, 2014, 29 the percentage of actual value as equalized by the director 30 of revenue as provided in section 441.49 at which industrial 31 property shall be assessed shall be ninety percent. For 32 valuations established for the assessment year beginning 33 January 1, 2015, the percentage of actual value as equalized by 34 the director of revenue as provided in section 441.49 at which 35 -7- LSB 1481XL (9) 85 md/sc 7/ 15

S.F. _____ H.F. _____ industrial property shall be assessed shall be eighty-five 1 percent. For valuations established for the assessment year 2 beginning January 1, 2016, the percentage of actual value as 3 equalized by the director of revenue as provided in section 4 441.49 at which industrial property shall be assessed shall be 5 eighty percent. 6 Sec. 6. Section 441.21, Code 2013, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 5A. In addition to the limitation of 9 increases for agricultural and residential property applicable 10 under subsection 4 and the limitation of increases for 11 commercial and industrial property applicable under subsection 12 5, for valuations established for the assessment year beginning 13 January 1, 2017, and each assessment year thereafter, for 14 residential, agricultural, commercial, and industrial property, 15 the assessed value of each of these four classes of property 16 shall be limited to the percentage increase of that class of 17 property that is the lowest percentage increase under the 18 allowable limit adjusted to include the applicable and current 19 values as equalized by the director of revenue. 20 Sec. 7. NEW SECTION . 441.21A Commercial and industrial 21 property tax replacement —— replacement claims. 22 1. a. For each fiscal year beginning on or after July 23 1, 2014, there is appropriated from the general fund of the 24 state to the department of revenue an amount necessary for 25 the payment of all commercial and industrial property tax 26 replacement claims under this section for the fiscal year. 27 However, for a fiscal year beginning on or after July 1, 2018, 28 the total amount of moneys appropriated from the general fund 29 of the state to the department of revenue for the payment 30 of commercial and industrial property tax replacement claims 31 in that fiscal year shall not exceed the total amount of 32 money that was necessary to pay all commercial and industrial 33 property tax replacement claims for the fiscal year beginning 34 July 1, 2017. 35 -8- LSB 1481XL (9) 85 md/sc 8/ 15

S.F. _____ H.F. _____ b. Moneys appropriated by the general assembly to the 1 department under this subsection for the payment of commercial 2 and industrial property tax replacement claims are not subject 3 to a uniform reduction in appropriations in accordance with 4 section 8.31. 5 2. Beginning with the fiscal year beginning July 1, 2014, 6 each county treasurer shall be paid by the department of 7 revenue an amount equal to the amount of the commercial and 8 industrial property tax replacement claims in the county, as 9 calculated in subsection 4. For fiscal years beginning on or 10 after July 1, 2018, if an amount appropriated for a fiscal year 11 is insufficient to pay all replacement claims, the director of 12 revenue shall prorate the payment of replacement claims to the 13 county treasurers and shall notify the county auditors of the 14 pro rata percentage on or before September 30. 15 3. On or before July 1 of each fiscal year beginning on 16 or after July 1, 2014, the assessor shall determine the total 17 assessed value of all commercial property and industrial 18 property assessed for taxes due and payable in that fiscal 19 year and the total actual value of such property for the same 20 assessment year, and shall report the valuations to the county 21 auditor. 22 4. On or before a date established by rule of the department 23 of revenue of each fiscal year beginning on or after July 1, 24 2014, the county auditor shall prepare a statement, based upon 25 the report received pursuant to subsection 3, listing for each 26 taxing district in the county: 27 a. The difference between the assessed valuation of all 28 commercial property and industrial property for the assessment 29 year used to calculate taxes which are due and payable in the 30 applicable fiscal year and the actual value of all commercial 31 property and industrial property for the same assessment year. 32 If the difference between the assessed value of all commercial 33 property and industrial property and the actual valuation of 34 all commercial property and industrial property is zero, there 35 -9- LSB 1481XL (9) 85 md/sc 9/ 15

S.F. _____ H.F. _____ is no tax replacement for that taxing district for the fiscal 1 year. 2 b. The tax levy rate per one thousand dollars of assessed 3 value for each taxing district for that fiscal year. 4 c. The commercial and industrial property tax replacement 5 claim for each taxing district. The replacement claim is equal 6 to the amount determined pursuant to paragraph “a” , multiplied 7 by the tax rate specified in paragraph “b” , and then divided by 8 one thousand dollars. 9 5. For purposes of computing replacement amounts under 10 this section, that portion of an urban renewal area defined as 11 the sum of the assessed valuations defined in section 403.19, 12 subsections 1 and 2, shall be considered a taxing district. 13 6. a. The county auditor shall certify and forward one copy 14 of the statement to the department of revenue not later than 15 a date of each year established by the department of revenue 16 by rule. 17 b. The replacement claims shall be paid to each county 18 treasurer in equal installments in September and March of each 19 year. The county treasurer shall apportion the replacement 20 claim payments among the eligible taxing districts in the 21 county. 22 c. If the taxing district is an urban renewal area, the 23 amount of the replacement claim shall be apportioned and 24 credited to those portions of the assessed value defined in 25 section 403.19, subsections 1 and 2, as follows: 26 (1) To that portion defined in section 403.19, subsection 27 1, an amount of the replacement claim that is proportionate to 28 the amount of actual value of the commercial and industrial 29 property in the urban renewal area as determined in section 30 403.19, subsection 1, that was subtracted pursuant to section 31 403.20, as it bears to the total amount of actual value of 32 the commercial and industrial property in the urban renewal 33 area that was subtracted pursuant to section 403.20 for the 34 assessment year for property taxes due and payable in the 35 -10- LSB 1481XL (9) 85 md/sc 10/ 15

S.F. _____ H.F. _____ fiscal year for which the replacement claim is computed. 1 (2) To that portion defined in section 403.19, subsection 2, 2 the remaining amount, if any. 3 d. Notwithstanding the allocation provisions of paragraph 4 “c” , the amount of the tax replacement amount that shall be 5 allocated to that portion of the assessed value defined in 6 section 403.19, subsection 2, shall not exceed the amount equal 7 to the amount certified to the county auditor under section 8 403.19 for the fiscal year in which the claim is paid, after 9 deduction of the amount of other revenues committed for payment 10 on that amount for the fiscal year. The amount not allocated 11 to that portion of the assessed value defined in section 12 403.19, subsection 2, as a result of the operation of this 13 paragraph, shall be allocated to that portion of assessed value 14 defined in section 403.19, subsection 1. 15 e. The amount of the replacement claim amount credited to 16 the portion of the assessed value defined in section 403.19, 17 subsection 1, shall be allocated to and when received be paid 18 into the fund for the respective taxing district as taxes by 19 or for the taxing district into which all other property taxes 20 are paid. The amount of the replacement claim amount credited 21 to the portion of the assessed value defined in section 403.19, 22 subsection 2, shall be allocated to and when collected be paid 23 into the special fund of the municipality under section 403.19, 24 subsection 2. 25 Sec. 8. SAVINGS PROVISION. This Act, pursuant to section 26 4.13, does not affect the operation of, or prohibit the 27 application of, prior provisions of section 441.21, or rules 28 adopted under chapter 17A to administer prior provisions 29 of section 441.21, for assessment years beginning before 30 January 1, 2013, and for duties, powers, protests, appeals, 31 proceedings, actions, or remedies attributable to an assessment 32 year beginning before January 1, 2013. 33 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 34 immediate importance, takes effect upon enactment. 35 -11- LSB 1481XL (9) 85 md/sc 11/ 15

S.F. _____ H.F. _____ Sec. 10. RETROACTIVE APPLICABILITY. This Act applies 1 retroactively to January 1, 2013, for assessment years 2 beginning on or after that date. 3 EXPLANATION 4 This bill changes the property tax assessment limitation 5 percentage for residential property and agricultural property 6 from 4 percent to 2 percent for assessment years beginning on 7 or after January 1, 2013. 8 The bill modifies the methodology in Code section 441.21(5) 9 currently used to determine the percentage of actual value 10 at which commercial property and industrial property are 11 assessed for property tax purposes. The bill provides that 12 for valuations established for the assessment year beginning 13 January 1, 2013, the percentage of actual value at which 14 commercial and industrial property are assessed is 95 percent. 15 For the assessment year beginning January 1, 2014, the 16 percentage of actual value at which commercial and industrial 17 property are assessed is 90 percent. For the assessment year 18 beginning January 1, 2015, the percentage of actual value 19 at which commercial and industrial property are assessed is 20 85 percent. For the assessment year beginning January 1, 21 2016, the percentage of actual value at which commercial and 22 industrial property are assessed is 80 percent. For assessment 23 years beginning on or after January 1, 2017, the percentage of 24 actual value at which commercial and industrial property are 25 assessed shall be calculated in accordance with the methodology 26 used to determine the percentages at which commercial 27 and industrial property are assessed for assessment years 28 beginning before January 1, 2013, except that the percentage 29 of permissible assessed value growth is changed from 4 percent 30 to 2 percent. 31 The bill also provides that for assessment years beginning 32 on or after January 1, 2017, in addition to the limitations on 33 the growth in taxable value for agricultural and residential 34 property in Code section 441.21(4) and commercial and 35 -12- LSB 1481XL (9) 85 md/sc 12/ 15

S.F. _____ H.F. _____ industrial property in Code section 441.21(5), for residential, 1 agricultural, commercial, and industrial property, the assessed 2 value of each of these four classes of property shall be 3 limited to the percentage increase of that class of property 4 that is the lowest percentage increase under the allowable 5 limit. 6 The bill provides that for valuations established on or 7 after January 1, 2013, property valued by the department of 8 revenue pursuant to Code chapter 434 (railway property) is 9 assessed at a percentage of its actual value equal to the 10 percentage of actual value at which commercial property is 11 assessed for the same assessment year. 12 The bill provides for commercial and industrial property 13 tax replacement payments in new Code section 441.21A. For 14 the fiscal year beginning July 1, 2014, and each fiscal year 15 thereafter, the bill appropriates from the general fund of the 16 state to the department of revenue an amount necessary to pay 17 all commercial and industrial property tax replacement claims 18 for that fiscal year. However, in no fiscal year beginning 19 on or after July 1, 2018, shall the total amount of money 20 appropriated from the general fund of the state for the payment 21 of commercial and industrial property tax replacement claims 22 in that fiscal year exceed the total amount of money that was 23 necessary to pay all commercial and industrial property tax 24 replacement payments for the fiscal year beginning July 1, 25 2017. 26 The bill provides that moneys appropriated by the general 27 assembly to the department of revenue under new Code section 28 441.21A for the payment of commercial and industrial property 29 tax replacement claims are not subject to a uniform reduction 30 in appropriations in accordance with Code section 8.31. 31 For fiscal years beginning on or after July 1, 2018, if 32 an amount appropriated to the department of revenue for a 33 fiscal year is insufficient to pay all replacement claims, the 34 director of revenue shall prorate the replacement payments to 35 -13- LSB 1481XL (9) 85 md/sc 13/ 15

S.F. _____ H.F. _____ the county treasurers and shall notify the county auditors of 1 the pro rata percentage on or before September 30. 2 The bill requires the assessor to determine, on or before 3 July 1 of each fiscal year beginning on or after July 1, 4 2014, the total assessed value of all commercial property 5 and industrial property for taxes due and payable in that 6 fiscal year and the total actual value of all such property 7 for the same assessment year, and to report those valuations 8 to the county auditor. On or before a date established by the 9 department of revenue, the county auditor prepares a statement, 10 based upon the report listing for each taxing district in the 11 county the difference between assessed and actual values of 12 such property located in the taxing district, the tax levy rate 13 per $1,000 of assessed value for each taxing district, and 14 the property tax replacement claim for each taxing district. 15 The replacement claim is equal to the difference between the 16 assessed valuation of all such property located in the taxing 17 district and assessed for the applicable assessment year and 18 the total actual value of all such property located in the 19 taxing district for the same assessment year, multiplied by 20 the tax rate per $1,000 of assessed value specified for the 21 taxing district, and then divided by $1,000. If the difference 22 between the actual and assessed values is zero, there is no 23 replacement claim for the taxing district for that year. 24 Replacement claims are paid to each county treasurer in 25 equal installments in September and March of each year. The 26 county treasurer apportions the replacement claim payments 27 among the eligible taxing districts in the county. 28 The bill defines a tax increment financing district in 29 an urban renewal area as a taxing district for purposes of 30 allocation of replacement moneys and provides for the method of 31 allocation in those districts. 32 The bill, pursuant to Code section 4.13, does not affect 33 the application of prior provisions of Code section 441.21 to 34 assessment years beginning before January 1, 2013. 35 -14- LSB 1481XL (9) 85 md/sc 14/ 15