Senate File 2167 - Introduced SENATE FILE 2167 BY QUIRMBACH , TRONE GARRIOTT , PETERSEN , BISIGNANO , DOTZLER , GIDDENS , J. SMITH , JOCHUM , BOULTON , MATHIS , RAGAN , WAHLS , and BOLKCOM A BILL FOR An Act relating to commercial and industrial property 1 tax replacement payments and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6146XS (4) 89 md/jh

S.F. 2167 Section 1. Section 2.48, subsection 3, paragraph f, Code 1 2022, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (6) Commercial and industrial property 3 tax replacement payments under section 441.21A. 4 Sec. 2. Section 441.21A, subsection 1, paragraph a, Code 5 2022, is amended to read as follows: 6 a. For each fiscal year beginning on or after July 1, 2014, 7 but before July 1, 2029, there is appropriated from the general 8 fund of the state to the department of revenue an amount 9 necessary for the payment of all commercial and industrial 10 property tax replacement claims under this section for the 11 fiscal year. However, for the a fiscal years year beginning 12 on or after July 1, 2017, July 1, 2018, July 1, 2019, July 1, 13 2020, and July 1, 2021, the total amount of moneys appropriated 14 from the general fund of the state to the department of revenue 15 for the payment of commercial and industrial property tax 16 replacement claims in each that fiscal year shall not exceed 17 the total amount of money necessary to pay all commercial and 18 industrial property tax replacement claims for the fiscal year 19 beginning July 1, 2016. 20 Sec. 3. Section 441.21A, subsections 2 and 3, Code 2022, are 21 amended to read as follows: 22 2. a. For each Beginning with the fiscal year beginning 23 on or after July 1, 2014, but before July 1, 2022, each county 24 treasurer shall be paid by the department of revenue an 25 amount equal to the amount of the commercial and industrial 26 property tax replacement claims in the county, as calculated 27 in subsection 4 . If an amount appropriated for the a fiscal 28 year beginning on July 1, 2017, July 1, 2018, July 1, 2019, 29 July 1, 2020, or July 1, 2021, is insufficient to pay all 30 replacement claims for the fiscal year , the director of revenue 31 shall prorate the payment of replacement claims to the county 32 treasurers and shall notify the county auditors of the pro rata 33 percentage on or before September 30. 34 b. For each fiscal year beginning on or after July 1, 2022, 35 -1- LSB 6146XS (4) 89 md/jh 1/ 4

S.F. 2167 but before July 1, 2029, each county treasurer shall be paid 1 by the department of revenue an amount equal to the sum of the 2 commercial and industrial property tax replacement claims for 3 all taxing authorities, or portion thereof, located in the 4 county, as calculated in subsection 5 . The county treasurer 5 shall pay to each taxing authority the taxing authority’s 6 commercial and industrial property tax replacement claim, or 7 portion thereof, as calculated in subsection 5 . 8 3. a. On or before July 1 of each fiscal year beginning on 9 or after July 1, 2014, but before July 1, 2022, the assessor 10 shall report to the county auditor the total actual value of 11 all commercial property and industrial property in the county 12 that is subject to assessment and taxation for the assessment 13 year used to calculate the taxes due and payable in that fiscal 14 year. 15 b. On or before July 1, 2022, the department of management 16 shall calculate and report to the department of revenue for 17 each taxing authority in this state that is a city or a county 18 all of the following: 19 (1) The total assessed value as of January 1, 2012, of 20 all taxable property located in the taxing authority that is 21 subject to assessment and taxation used to calculate taxes 22 which are due and payable in the fiscal year beginning July 1, 23 2013, excluding property subject to the statewide property tax 24 imposed under section 437A.18 or 437B.14 . 25 (2) The total assessed value as of January 1, 2019, of 26 all taxable property located in the taxing authority that is 27 subject to assessment and taxation used to calculate taxes 28 which are due and payable in the fiscal year beginning July 1, 29 2020, excluding property subject to the statewide property tax 30 imposed under section 437A.18 or 437B.14 . 31 Sec. 4. Section 441.21A, subsection 4, unnumbered paragraph 32 1, Code 2022, is amended to read as follows: 33 On or before a date established by rule of the department 34 of revenue of each fiscal year beginning on or after July 35 -2- LSB 6146XS (4) 89 md/jh 2/ 4

S.F. 2167 1, 2014, but before July 1, 2022, the county auditor shall 1 prepare a statement, based upon the report received pursuant to 2 subsection 3 , paragraph “a” , listing for each taxing district 3 in the county: 4 Sec. 5. Section 441.21A, subsection 5, Code 2022, is amended 5 by striking the subsection. 6 Sec. 6. Section 441.21A, subsection 6, Code 2022, is amended 7 to read as follows: 8 6. For purposes of computing replacement amounts under 9 this section for fiscal years beginning on or after July 1, 10 2014, but before July 1, 2022, that portion of an urban renewal 11 area defined as the sum of the assessed valuations defined in 12 section 403.19, subsections 1 and 2 , shall be considered a 13 taxing district. 14 Sec. 7. Section 441.21A, subsection 7, paragraph a, Code 15 2022, is amended to read as follows: 16 a. For fiscal years beginning on or after July 1, 2014, 17 but before July 1, 2022, the The county auditor shall certify 18 and forward one copy of the statement to the department of 19 revenue not later than a date of each year established by the 20 department of revenue by rule. 21 Sec. 8. Section 441.21A, subsection 7, paragraph f, Code 22 2022, is amended by striking the paragraph. 23 Sec. 9. Section 441.21A, subsections 8 and 9, Code 2022, are 24 amended by striking the subsections. 25 Sec. 10. REPEAL. 2021 Iowa Acts, chapter 177, sections 110, 26 111, 120, 122, and 123, are repealed. 27 Sec. 11. EFFECTIVE DATE. This Act, being deemed of 28 immediate importance, takes effect upon enactment. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 Iowa Code section 441.21A establishes and appropriates 33 amounts for commercial and industrial property tax replacement 34 claims. 2021 Acts, chapter 177, eliminated the appropriation 35 -3- LSB 6146XS (4) 89 md/jh 3/ 4

S.F. 2167 for the replacement payments for fiscal years beginning 1 on or after July 1, 2029, and modified the methodology for 2 calculating and apportioning commercial and industrial property 3 tax replacement claims for fiscal years beginning on or after 4 July 1, 2022, but before July 1, 2029. Changes to Code section 5 441.21A, enacted in 2021 Acts, chapter 177, required such 6 claims to be calculated based on taxing authorities instead 7 of taxing districts and required each taxing authority’s 8 replacement claim to be determined based on specified fractions 9 of the amount received by the taxing authority under Iowa Code 10 section 441.21A for the fiscal year beginning July 1, 2021, and 11 whether the taxing authority is a qualified taxing authority. 12 This bill amends Code section 441.21A and 2021 Acts, chapter 13 177, to modify the commercial and industrial property tax 14 replacement claims and payments to operate in the manner the 15 claims and payments operated prior to enactment of 2021 Acts, 16 chapter 177, by calculating commercial and industrial property 17 tax replacement based on the difference between the actual 18 value and assessed value of all commercial and industrial 19 property in each taxing district in the state. 20 The bill takes effect upon enactment. 21 -4- LSB 6146XS (4) 89 md/jh 4/ 4