H.F. 612 Section 1. Section 441.21, subsection 4, Code 2015, is 1 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 -1- LSB 2362YH (3) 86 md/sc 1/ 3

H.F. 612 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 1, 14 1980, and each assessment year thereafter beginning before 15 January 1, 2013, the percentage of actual value as equalized 16 by the director of revenue as provided in section 441.49 at 17 which agricultural and residential property shall be assessed 18 shall be calculated in accordance with the methods provided 19 in this subsection , including the limitation of increases in 20 agricultural and residential assessed values to the percentage 21 increase of the other class of property if the other class 22 increases less than the allowable limit adjusted to include 23 the applicable and current values as equalized by the director 24 of revenue, except that any references to six percent in this 25 subsection shall be four percent. For valuations established 26 as of January 1, 2013, and each assessment year thereafter 27 beginning before January 1, 2016 , the percentage of actual 28 value as equalized by the director of revenue as provided in 29 section 441.49 at which agricultural and residential property 30 shall be assessed shall be calculated in accordance with the 31 methods provided in this subsection , including the limitation 32 of increases in agricultural and residential assessed values to 33 the percentage increase of the other class of property if the 34 other class increases less than the allowable limit adjusted to 35 -2- LSB 2362YH (3) 86 md/sc 2/ 3

H.F. 612 include the applicable and current values as equalized by the 1 director of revenue, except that any references to six percent 2 in this subsection shall be three percent. For valuations 3 established as of January 1, 2016, and each assessment year 4 thereafter, the percentage of actual value as equalized by 5 the director of revenue as provided in section 441.49 at 6 which agricultural and residential property shall be assessed 7 shall be calculated in accordance with the methods provided 8 in this subsection, excluding the limitation of increases in 9 agricultural and residential assessed values to the percentage 10 increase of the other class of property if the other class 11 increases less than the allowable limit adjusted to include 12 the applicable and current values as equalized by the director 13 of revenue, except that any references to six percent in this 14 subsection shall be three percent. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 Current Code section 441.21 imposes limitations on the 19 annual increase in statewide actual value of residential 20 property and agricultural property due to revaluation. 21 Accordingly, the assessed value subject to taxation is a 22 percentage of the assessed value as a result of those statewide 23 limitations on annual growth. 24 As part of the assessment limitation calculation for 25 residential property and agricultural property, Code section 26 441.21 provides that if the increase due to revaluation for 27 either class of property is less than 3 percent, the annual 28 increase in each class of property is limited to the smaller 29 of the two increases in either class of property. This bill 30 removes that provision for the calculation of assessment 31 limitations for assessment years beginning on or after January 32 1, 2016. 33 -3- LSB 2362YH (3) 86 md/sc 3/ 3