Senate File 2086 - IntroducedA Bill ForAn Act 1requiring notices of potential eligibility for the
2business property tax credit.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 103A.19, subsection 2, paragraph d,
2unnumbered paragraph 1, Code 2020, is amended to read as
3follows:
   4Issue certificates of occupancy or use, permits, licenses,
5and other documents in connection with the construction of
6buildings or structures as may be required by ordinance.
 7Permits issued on or after July 1, 2020, for the construction
8of buildings or structures that are reasonably likely to be
9assessed for property tax purposes as commercial property,
10industrial property, or railway property shall include a
11notice of the eligibility criteria and filing deadline for the
12business property tax credit under chapter 426C.

13   Sec. 2.  Section 426C.3, Code 2020, is amended by adding the
14following new subsection:
15   NEW SUBSECTION.  8.  On or before April 1, 2021, and on or
16before each April 1 thereafter, the assessor shall provide
17written notice to the owner or taxpayer of each commercial
18property, industrial property, or railway property in the
19assessor’s jurisdiction not currently receiving a business
20property tax credit or for which a business property tax credit
21claim has not been filed. The notice shall provide a summary
22of the eligibility criteria for the business property tax
23credit and shall identify the filing deadline for the credit.
24   Sec. 3.  Section 441.26, Code 2020, is amended by adding the
25following new subsection:
26   NEW SUBSECTION.  5.  Beginning with valuations for January
271, 2021, and each succeeding year, the assessment roll notice
28provided to the property owner or taxpayer of each commercial
29property, industrial property, or railway property shall also
30identify whether the property is currently receiving a business
31property tax credit under chapter 426C.
32   Sec. 4.  IMPLEMENTATION OF ACT.  Section 25B.2, subsection
333, shall not apply to this Act.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-1-1the explanation’s substance by the members of the general assembly.
   2This bill relates to notices of potential eligibility for
3the business property tax credit.
   4The bill requires the local assessor to annually provide
5written notice to the owner or taxpayer of each commercial
6property, industrial property, or railway property in the
7assessor’s jurisdiction not currently receiving a business
8property tax credit or for which a business property tax credit
9claim has not been filed under Code chapter 426C. The notice
10is required to provide a summary of the eligibility criteria
11for the business property tax credit and shall identify the
12filing deadline for the credit.
   13The bill also amends Code section 441.26 to provide that
14beginning with valuations for January 1, 2021, and each
15succeeding year, the assessment roll notice provided to
16the property owner or taxpayer of each commercial property,
17industrial property, or railway property shall also identify
18whether the property is currently receiving a business property
19tax credit under Code chapter 426C.
   20As part of the “State Building Code Act”, Code section
21103A.19 provides that each governmental subdivision of
22the state may, and each city with a population of 15,000
23or more that has not adopted a local building code, shall
24issue certificates of occupancy or use, permits, licenses,
25and other documents in connection with the construction of
26buildings or structures as may be required by ordinance. The
27bill provides that permits issued on or after July 1, 2020,
28for the construction of buildings or structures that are
29reasonably likely to be assessed for property tax purposes as
30commercial property, industrial property, or railway property
31shall include a notice of the eligibility criteria and filing
32deadline for the business property tax credit under Code
33chapter 426C.
   34The bill may include a state mandate as defined in Code
35section 25B.3. The bill makes inapplicable Code section 25B.2,
-2-1subsection 3, which would relieve a political subdivision from
2complying with a state mandate if funding for the cost of
3the state mandate is not provided or specified. Therefore,
4political subdivisions are required to comply with any state
5mandate included in the bill.
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