Senate File 2086 - Introduced SENATE FILE 2086 BY WHITING A BILL FOR An Act requiring notices of potential eligibility for the 1 business property tax credit. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5821SS (3) 88 md/jh

S.F. 2086 Section 1. Section 103A.19, subsection 2, paragraph d, 1 unnumbered paragraph 1, Code 2020, is amended to read as 2 follows: 3 Issue certificates of occupancy or use, permits, licenses, 4 and other documents in connection with the construction of 5 buildings or structures as may be required by ordinance. 6 Permits issued on or after July 1, 2020, for the construction 7 of buildings or structures that are reasonably likely to be 8 assessed for property tax purposes as commercial property, 9 industrial property, or railway property shall include a 10 notice of the eligibility criteria and filing deadline for the 11 business property tax credit under chapter 426C. 12 Sec. 2. Section 426C.3, Code 2020, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 8. On or before April 1, 2021, and on or 15 before each April 1 thereafter, the assessor shall provide 16 written notice to the owner or taxpayer of each commercial 17 property, industrial property, or railway property in the 18 assessor’s jurisdiction not currently receiving a business 19 property tax credit or for which a business property tax credit 20 claim has not been filed. The notice shall provide a summary 21 of the eligibility criteria for the business property tax 22 credit and shall identify the filing deadline for the credit. 23 Sec. 3. Section 441.26, Code 2020, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 5. Beginning with valuations for January 26 1, 2021, and each succeeding year, the assessment roll notice 27 provided to the property owner or taxpayer of each commercial 28 property, industrial property, or railway property shall also 29 identify whether the property is currently receiving a business 30 property tax credit under chapter 426C. 31 Sec. 4. IMPLEMENTATION OF ACT. Section 25B.2, subsection 32 3, shall not apply to this Act. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -1- LSB 5821SS (3) 88 md/jh 1/ 3

S.F. 2086 the explanation’s substance by the members of the general assembly. 1 This bill relates to notices of potential eligibility for 2 the business property tax credit. 3 The bill requires the local assessor to annually provide 4 written notice to the owner or taxpayer of each commercial 5 property, industrial property, or railway property in the 6 assessor’s jurisdiction not currently receiving a business 7 property tax credit or for which a business property tax credit 8 claim has not been filed under Code chapter 426C. The notice 9 is required to provide a summary of the eligibility criteria 10 for the business property tax credit and shall identify the 11 filing deadline for the credit. 12 The bill also amends Code section 441.26 to provide that 13 beginning with valuations for January 1, 2021, and each 14 succeeding year, the assessment roll notice provided to 15 the property owner or taxpayer of each commercial property, 16 industrial property, or railway property shall also identify 17 whether the property is currently receiving a business property 18 tax credit under Code chapter 426C. 19 As part of the “State Building Code Act”, Code section 20 103A.19 provides that each governmental subdivision of 21 the state may, and each city with a population of 15,000 22 or more that has not adopted a local building code, shall 23 issue certificates of occupancy or use, permits, licenses, 24 and other documents in connection with the construction of 25 buildings or structures as may be required by ordinance. The 26 bill provides that permits issued on or after July 1, 2020, 27 for the construction of buildings or structures that are 28 reasonably likely to be assessed for property tax purposes as 29 commercial property, industrial property, or railway property 30 shall include a notice of the eligibility criteria and filing 31 deadline for the business property tax credit under Code 32 chapter 426C. 33 The bill may include a state mandate as defined in Code 34 section 25B.3. The bill makes inapplicable Code section 25B.2, 35 -2- LSB 5821SS (3) 88 md/jh 2/ 3

S.F. 2086 subsection 3, which would relieve a political subdivision from 1 complying with a state mandate if funding for the cost of 2 the state mandate is not provided or specified. Therefore, 3 political subdivisions are required to comply with any state 4 mandate included in the bill. 5 -3- LSB 5821SS (3) 88 md/jh 3/ 3