HF 444 (LSB 2386YH (3) 91)

HOUSE FILE 444

BY  AMOS JR., WICHTENDAHL, SRINIVAS, B. MEYER, BROWN-POWERS, WILBURN, and BAGNIEWSKI

A BILL FOR

An Act relating to property assessment and property taxation by creating a recreational class of real property for golf courses.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 441.21, subsection 8, paragraph b, Code 2025, is amended to read as follows:
   b.  Notwithstanding paragraph “a”, any construction or installation of a solar energy system on property classified as agricultural, recreational, residential, commercial, or industrial property shall not increase the actual, assessed, and taxable values of the property for five full assessment years.
    Sec. 2.  Section 441.21, subsections 9 and 10, Code 2025, are amended to read as follows:
   9.  Not later than November 1, 1979, and November 1 of each subsequent year, the director shall certify to the county auditor of each county the percentages of actual value at which residential property, agricultural property, commercial property, industrial property, recreational property, property valued by the department of revenue pursuant to chapters 428 and 438, property valued by the department of revenue pursuant to chapter 434, and property valued by the department of revenue pursuant to chapter 437 in each assessing jurisdiction in the county shall be assessed for taxation, including for assessment years beginning on or after January 1, 2022, the percentages used to apply the assessment limitations under subsection 5, paragraphs “b” and “c”. The county auditor shall proceed to determine the assessed values of agricultural property, residential property, commercial property, industrial property, recreational property, property valued by the department of revenue pursuant to chapters 428 and 438, property valued by the department of revenue pursuant to chapter 434, and property valued by the department of revenue pursuant to chapter 437 by applying such percentages to the current actual value of such property, as reported to the county auditor by the assessor, and the assessed values so determined shall be the taxable values of such properties upon which the levy shall be made.
   10.  The percentages of actual value computed by the department of revenue for agricultural property, residential property, commercial property, industrial property, recreational property, property valued by the department of revenue pursuant to chapters 428 and 438, property valued by the department of revenue pursuant to chapter 434, and property valued by the department of revenue pursuant to chapter 437, including for assessment years beginning on or after January 1, 2022, the percentages used to apply the assessment limitations under subsection 5, paragraphs “b” and “c”, and used to determine assessed values of those classes of property do not constitute a rule as defined in section 17A.2, subsection 11.
    Sec. 3.  Section 441.21, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  15.  a.  For valuations established for the assessment year beginning January 1, 2026, and each assessment year thereafter, recreational property shall be valued as a separate class of property and shall be assessed at seventy-five percent of its actual value.
   b.  Recreational property is subject to reassessment by the assessor and is subject to the same equalization percentage amount determined by the director of revenue pursuant to section 441.49 as is ordered for commercial property.
   c.  For purposes of this subsection, “recreational property” means a golf course, if such property is operated as a commercial enterprise and otherwise subject to taxation.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill creates a new class of property, recreational property, for purposes of property assessment and taxation, beginning with valuations established on or after January 1, 2026. The bill describes recreational property as a golf course operated as a commercial enterprise and subject to taxation.
   The bill provides that for valuations established for the assessment year beginning January 1, 2026, and each assessment year thereafter, recreational property shall be assessed at 75 percent of its actual value.