HF 2419 (LSB 5742YH (2) 90)

HOUSE FILE 2419

BY  JACOBY

A BILL FOR

An Act modifying the calculation to determine the percentage of actual value at which agricultural and residential properties are taxed, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 441.21, subsection 4, paragraph a, subparagraph (2), Code 2024, is amended by striking the subparagraph.
    Sec. 2.  Section 441.21, subsection 4, paragraph c, subparagraph (2), Code 2024, is amended to read as follows:
   (2)  For valuations established as of January 1, 2013, and each assessment year thereafter, the percentage of actual value as equalized by the department of revenue as provided in section 441.49 at which agricultural and residential property shall be assessed shall be calculated in accordance with the methods provided in this subsection, including the limitation of increases in agricultural and residential assessed values to the percentage increase of the other class of property if the other class increases less than the allowable limit adjusted to include the applicable and current values as equalized by the department of revenue, except that any references to six percent in this subsection shall be three percent.
    Sec. 3.  APPLICABILITY.  This Act applies to assessment years beginning on or after January 1, 2025.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, calculations of the percentage of actual value at which agricultural and residential property are assessed for taxation are based on several factors. One such factor is the percentage of growth in each class of property. Under current law, the amount of growth that may be used to calculate the taxable percentage of each class of property is limited to the amount of growth of whichever class of property had less growth in the previous year if at least one class of property had less than 3 percent growth.
   This bill removes the limitation that residential property growth and agricultural property growth may only be calculated based on whichever class of property had lower growth. Both classes of property are still subject to the limitation that growth for that class of property cannot exceed 3 percent in an assessment year.
   The bill applies to assessment years beginning on or after January 1, 2025.