SF 267 (LSB 1176XS (2) 89)

SENATE FILE 267

BY  GOODWIN

A BILL FOR

An Act relating to determinations of actual value of certain agricultural property based on productivity and net earning capacity.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 441.21, subsection 1, paragraph e, Code 2021, is amended to read as follows:
   e.  (1)  The actual value of agricultural property shall be determined on the basis of productivity and net earning capacity of the property determined on the basis of its use for agricultural purposes capitalized at a rate of seven percent and applied uniformly among counties and among classes of property. Any formula or method employed to determine productivity and net earning capacity of property shall be adopted in full by rule.
   (2)  For assessment years beginning on or after January 1, 2022, in addition to adjustments to productivity and net earning capacity based on the per acre drainage and levee district taxes in the county assessed under chapter 468 in the rules adopted by the department under subparagraph (1), the actual value of each acre of agricultural property subject to drainage and levee district taxes for the assessment year shall be reduced by an amount equal to the difference, but not less than zero, between the actual per acre drainage and levee district taxes imposed on the property for the assessment year minus the per acre drainage and levee district taxes in the county used to determine productivity and net earning capacity for the assessment year under the rules adopted by the department under subparagraph (1).
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code section 441.21 provides that the actual value of agricultural property shall be determined on the basis of productivity and net earning capacity of the property determined on the basis of its use for agricultural purposes capitalized at a rate of 7 percent and applied uniformly among counties and among classes of property.
   This bill provides that for assessment years beginning on or after January 1, 2022, in addition to adjustments to productivity and net earning capacity based on the per acre drainage and levee district taxes in the county assessed under Code chapter 468, the actual value of each acre of agricultural property subject to drainage and levee district taxes for the assessment year shall be reduced by an amount equal to the difference, but not less than zero, between the actual per acre drainage and levee district taxes imposed on the property for the assessment year minus the per acre drainage and levee district taxes in the county used to determine productivity and net earning capacity for the assessment year.