S.F. _____ H.F. _____ Section 1. Section 441.21, subsection 4, Code 2023, 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 of 5 the dividend and divisor as defined in this section . 6 a. (1) The dividend for each class of property shall be 7 the dividend as determined for each class of property for 8 valuations established as of January 1, 1978, adjusted by the 9 product obtained by multiplying the percentage determined 10 for that year by the amount of any additions or deletions to 11 actual value, excluding those resulting from the revaluation 12 of existing properties, as reported by the assessors on the 13 abstracts of assessment for 1978, plus six percent of the 14 amount so determined. 15 (2) However, if the difference between the dividend so 16 determined for either class of property and the dividend for 17 that class of property for valuations established as of January 18 1, 1978, adjusted by the product obtained by multiplying 19 the percentage determined for that year by the amount of 20 any additions or deletions to actual value, excluding those 21 resulting from the revaluation of existing properties, as 22 reported by the assessors on the abstracts of assessment for 23 1978, is less than six percent, the 1979 dividend for the other 24 class of property shall be the dividend as determined for that 25 class of property for valuations established as of January 26 1, 1978, adjusted by the product obtained by multiplying 27 the percentage determined for that year by the amount of 28 any additions or deletions to actual value, excluding those 29 resulting from the revaluation of existing properties, as 30 reported by the assessors on the abstracts of assessment for 31 1978, plus a percentage of the amount so determined which is 32 equal to the percentage by which the dividend as determined 33 for the other class of property for valuations established 34 as of January 1, 1978, adjusted by the product obtained by 35 -1- LSB 1566XL (3) 90 md/jh 1/ 5

S.F. _____ H.F. _____ multiplying the percentage determined for that year by the 1 amount of any additions or deletions to actual value, excluding 2 those resulting from the revaluation of existing properties, as 3 reported by the assessors on the abstracts of assessment for 4 1978, is increased in arriving at the 1979 dividend for the 5 other class of property. 6 (3) For valuations established for assessment years 7 beginning on or after January 1, 2022, the calculation of the 8 dividend for residential property under this subsection shall 9 exclude the value of all property described in subsection 14, 10 paragraph “a” , subparagraphs (2), (3), (4), (5), and (6), 11 and the property described in subsection 14, paragraph “a” , 12 subparagraph (7), that contains three or more separate dwelling 13 units. 14 b. (1) The divisor for each class of property shall be 15 the total actual value of all such property in the state 16 in the preceding year, as reported by the assessors on the 17 abstracts of assessment submitted for 1978, plus the amount of 18 value added to said total actual value by the revaluation of 19 existing properties in 1979 as equalized by the director of 20 revenue pursuant to section 441.49 . The director shall utilize 21 information reported on abstracts of assessment submitted 22 pursuant to section 441.45 in determining such percentage. 23 (2) For valuations established for assessment years 24 beginning on or after January 1, 2022, the calculation of the 25 divisor for residential property under this subsection shall 26 exclude the value of all property described in subsection 14, 27 paragraph “a” , subparagraphs (2), (3), (4), (5), and (6), 28 and the property described in subsection 14, paragraph “a” , 29 subparagraph (7), that contains three or more separate dwelling 30 units. 31 c. (1) For valuations established as of January 1, 1980, 32 and each assessment year thereafter beginning before January 33 1, 2013, the percentage of actual value as equalized by the 34 director of revenue as provided in section 441.49 at which 35 -2- LSB 1566XL (3) 90 md/jh 2/ 5

S.F. _____ H.F. _____ agricultural and residential property shall be assessed shall 1 be calculated in accordance with the methods provided in 2 this subsection , including the limitation of increases in 3 agricultural and residential assessed values to the percentage 4 increase of the other class of property if the other class 5 increases less than the allowable limit adjusted to include 6 the applicable and current values as equalized by the director 7 of revenue, except that any references to six percent in this 8 subsection shall be four percent. 9 (2) For valuations established as of January 1, 2013, and 10 each assessment year thereafter, the percentage of actual 11 value as equalized by the department of revenue as provided in 12 section 441.49 at which agricultural and residential property 13 shall be assessed shall be calculated in accordance with the 14 methods provided in this subsection , including the limitation 15 of increases in agricultural and residential assessed values to 16 the percentage increase of the other class of property if the 17 other class increases less than the allowable limit adjusted 18 to include the applicable and current values as equalized by 19 the department of revenue, except that any references to six 20 percent in this subsection shall be three percent. 21 Sec. 2. IMPLEMENTATION. 22 1. Notwithstanding the requirements of section 441.21, 23 subsection 9, and any other provision of law to the contrary, 24 the director of the department of revenue shall, within two 25 business days following the effective date of this Act, issue 26 an amended order certifying to the county auditor of each 27 county the percentages of actual value at which residential 28 property, commercial property, industrial property, and 29 property valued by the department of revenue pursuant to 30 chapter 434 shall be assessed for taxation under section 31 441.21, subsection 9, for the assessment year beginning January 32 1, 2022. The amended order shall supersede all previous 33 orders certifying percentages for assessment limitations for 34 residential property, commercial property, industrial property, 35 -3- LSB 1566XL (3) 90 md/jh 3/ 5

S.F. _____ H.F. _____ and property valued by the department of revenue pursuant to 1 chapter 434 for the assessment year beginning January 1, 2022. 2 2. Notwithstanding the requirements of section 441.21, 3 subsection 9, and any other provision of law to the contrary, 4 upon receipt of the amended order under subsection 1, each 5 county auditor shall proceed to determine the assessed values 6 of residential property, commercial property, industrial 7 property, and property valued by the department of revenue 8 pursuant to chapter 434 for the assessment year beginning 9 January 1, 2022, by applying the percentages from the amended 10 order to the actual value of such property reported to the 11 county auditor by the assessor. The assessed values so 12 determined shall be the taxable values of such properties upon 13 which the applicable levy shall be made. 14 3. Notwithstanding any provision of law to the contrary, 15 each county auditor, within ten days after issuance of the 16 order under subsection 1, shall report the valuation by class 17 of property for each taxing district in the county for the 18 assessment year beginning January 1, 2022, to the department of 19 management on forms provided by the department of management. 20 The valuations reported shall be the valuations used for 21 determining the levy rates necessary to fund the budgets of the 22 taxing districts for the fiscal year beginning July 1, 2023. 23 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 24 importance, takes effect upon enactment. 25 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 26 retroactively to assessment years beginning on or after January 27 1, 2022. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 Code section 441.21(4) establishes the calculation used 32 to determine the assessment limitation for residential 33 property and agricultural property. As the result of 2021 34 legislation, certain property that was previously classified 35 -4- LSB 1566XL (3) 90 md/jh 4/ 5

S.F. _____ H.F. _____ as multiresidential property is classified as residential 1 property for assessment years beginning on or after January 1, 2 2022, and the valuations of such property are included within 3 the aggregate valuations used to calculate the assessment 4 limitation under Code section 441.21(4). This bill excludes 5 the values of the following from the calculation of the 6 assessment limitation for assessment years beginning on 7 or after January 1, 2022: mobile home parks; manufactured 8 home communities; land-leased communities; assisted living 9 facilities; parcels primarily used or intended for human 10 habitation containing three or more separate dwelling units; 11 and that portion of a parcel primarily used or intended for use 12 as commercial property or industrial property that is used or 13 intended for human habitation containing three or more separate 14 dwelling units. 15 The bill includes implementation provisions requiring the 16 director of the department of revenue, within two business 17 days following the effective date of the bill, to issue an 18 amended order certifying to the county auditor of each county 19 the percentages of actual value at which residential property, 20 commercial property, industrial property, and property valued 21 by the department of revenue pursuant to Code chapter 434 shall 22 be assessed for taxation. The bill also requires each county 23 auditor to determine revised assessed values based on the 24 amended order and report the revised values to the department 25 of management within 10 days after issuance of the order. 26 The bill takes effect upon enactment and applies 27 retroactively to assessment years beginning on or after January 28 1, 2022. 29 -5- LSB 1566XL (3) 90 md/jh 5/ 5