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House Study Bill 93 - IntroducedA Bill ForAn Act 1relating to property tax classifications, assessment
2limitations, and administration, and including effective
3date and applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 404.2, subsection 2, paragraph f, Code
22021, is amended to read as follows:
3f. A statement specifying whether the revitalization is
4applicable to none, some, or all of the property assessed as
5residential, multiresidential, agricultural, commercial, or
6industrial property within the designated area or a combination
7thereof and whether the revitalization is for rehabilitation
8and additions to existing buildings or new construction or
9both. If revitalization is made applicable only to some
10property within an assessment classification, the definition of
11that subset of eligible property must be by uniform criteria
12which further some planning objective identified in the plan.
13The city shall state how long it is estimated that the area
14shall remain a designated revitalization area which time
15shall be longer than one year from the date of designation
16and shall state any plan by the city to issue revenue bonds
17for revitalization projects within the area. For a county,
18a revitalization area shall include only property which
19will be used as industrial property, commercial property,
20multiresidential property, or residential property. However, a
21county shall not provide a tax exemption under this chapter to
22commercial property, multiresidential property, or residential
23property which is located within the limits of a city.
24 Sec. 2. Section 404.3, subsection 4, paragraph a, Code 2021,
25is amended by striking the paragraph and inserting in lieu
26thereof the following:
27a. All qualified real estate assessed as residential
28property is eligible to receive a one hundred percent exemption
29from taxation on the actual value added by the improvements.
30 Sec. 3. Section 441.21, subsection 2, Code 2021, is amended
31to read as follows:
322. In the event market value of the property being assessed
33cannot be readily established in the foregoing manner, then
34the assessor may determine the value of the property using the
35other uniform and recognized appraisal methods including its
-1-1productive and earning capacity, if any, industrial conditions,
2its cost, physical and functional depreciation and obsolescence
3and replacement cost, and all other factors which would assist
4in determining the fair and reasonable market value of the
5property but the actual value shall not be determined by use
6of only one such factor. The following shall not be taken into
7consideration: Special value or use value of the property to
8its present owner, and the goodwill or value of a business
9which uses the property as distinguished from the value of
10the property as property. In addition, for assessment years
11beginning on or after January 1, 2018, and unless otherwise
12required for property valued by the department of revenue
13pursuant to chapters 428, 433, 437, and 438, the assessor
14shall not take into consideration and shall not request from
15any person sales or receipts data, expense data, balance
16sheets, bank account information, or other data related to
17the financial condition of a business operating in whole or
18in part on the property if the property is both classified as
19commercial or industrial property and owned and used by the
20owner of the business. However, in assessing property that
21is rented or leased to low-income individuals and families
22as authorized by section 42 of the Internal Revenue Code,
23as amended, and which section limits the amount that the
24individual or family pays for the rental or lease of units
25in the property, the assessor shall, unless the owner elects
26to withdraw the property from the assessment procedures for
27section 42 property, use the productive and earning capacity
28from the actual rents received as a method of appraisal and
29shall take into account the extent to which that use and
30limitation reduces the market value of the property. The
31assessor shall not consider any tax credit equity or other
32subsidized financing as income provided to the property in
33determining the assessed value. The property owner shall
34notify the assessor when property is withdrawn from section 42
35eligibility under the Internal Revenue Code or if the owner
-2-1elects to withdraw the property from the assessment procedures
2for section 42 property under this subsection. The property
3shall not be subject to section 42 assessment procedures
4for the assessment year for which section 42 eligibility is
5withdrawn or an election is made. This notification must
6be provided to the assessor no later than March 1 of the
7assessment year or the owner will be subject to a penalty of
8five hundred dollars for that assessment year. The penalty
9shall be collected at the same time and in the same manner
10as regular property taxes. An election to withdraw from the
11assessment procedures for section 42 property is irrevocable.
12Property that is withdrawn from the assessment procedures
13for section 42 property shall be classified and assessed as
14multiresidential residential property unless the property
15otherwise fails to meet the requirements of subsection 13 14.
16Upon adoption of uniform rules by the department of revenue
17or succeeding authority covering assessments and valuations
18of such properties, the valuation on such properties shall be
19determined in accordance with such rules and in accordance with
20forms and guidelines contained in the real property appraisal
21manual prepared by the department as updated from time to time
22for assessment purposes to assure uniformity, but such rules,
23forms, and guidelines shall not be inconsistent with or change
24the foregoing means of determining the actual, market, taxable
25and assessed values.
26 Sec. 4. Section 441.21, subsection 8, paragraph b, Code
272021, is amended to read as follows:
28b. Notwithstanding paragraph “a”, any construction or
29installation of a solar energy system on property classified
30as agricultural, residential, commercial, multiresidential, or
31industrial property shall not increase the actual, assessed,
32and taxable values of the property for five full assessment
33years.
34 Sec. 5. Section 441.21, subsections 9 and 10, Code 2021, are
35amended to read as follows:
-3- 19. Not later than November 1, 1979, and November 1 of each
2subsequent year, the director shall certify to the county
3auditor of each county the percentages of actual value at
4which residential property, agricultural property, commercial
5property, industrial property, multiresidential property,
6 property valued by the department of revenue pursuant to
7chapter 434, and property valued by the department of revenue
8pursuant to chapters 428, 433, 437, and 438 in each assessing
9jurisdiction in the county shall be assessed for taxation. The
10county auditor shall proceed to determine the assessed values
11of agricultural property, residential property, commercial
12property, industrial property, multiresidential property,
13 property valued by the department of revenue pursuant to
14chapter 434, and property valued by the department of revenue
15pursuant to chapters 428, 433, 437, and 438 by applying such
16percentages to the current actual value of such property,
17as reported to the county auditor by the assessor, and the
18assessed values so determined shall be the taxable values of
19such properties upon which the levy shall be made.
2010. The percentage of actual value computed by the
21department of revenue for agricultural property, residential
22property, commercial property, industrial property,
23multiresidential property, property valued by the department
24of revenue pursuant to chapter 434, and property valued by the
25department of revenue pursuant to chapters 428, 433, 437, and
26438 and used to determine assessed values of those classes
27of property does not constitute a rule as defined in section
2817A.2, subsection 11.
29 Sec. 6. Section 441.21, subsection 13, paragraphs a, b, and
30c, Code 2021, are amended to read as follows:
31a. (1) For the assessment year beginning January 1, 2015,
32mobile home parks, manufactured home communities, land-leased
33communities, assisted living facilities, property primarily
34used or intended for human habitation containing three or more
35separate dwelling units, and that portion of a building that is
-4-1used or intended for human habitation and a proportionate share
2of the land upon which the building is situated, regardless of
3the number of dwelling units located in the building, if the
4use for human habitation is not the primary use of the building
5and such building is not otherwise classified as residential
6property, shall be valued as a separate class of property
7known as multiresidential property and, excluding properties
8referred to in section 427A.1, subsection 9, shall be assessed
9at a percentage of its actual value, as determined in this
10subsection.
11(2) Beginning with valuations established on or after
12January 1, 2016, but before January 1, 2022, all of the
13following shall be valued as a separate class of property
14known as multiresidential property and, excluding properties
15referred to in section 427A.1, subsection 9, shall be assessed
16at a percentage of its actual value, as determined in this
17subsection:
18(a) (1) Mobile home parks.
19(b) (2) Manufactured home communities.
20(c) (3) Land-leased communities.
21(d) (4) Assisted living facilities.
22(e) (5) A parcel primarily used or intended for human
23habitation containing three or more separate dwelling units.
24If a portion of such a parcel is used or intended for a purpose
25that, if the primary use, would be classified as commercial
26property or industrial property, each such portion, including
27a proportionate share of the land included in the parcel, if
28applicable, shall be assigned the appropriate classification
29pursuant to paragraph “c”.
30(f) (6) For a parcel that is primarily used or intended for
31use as commercial property or industrial property, that portion
32of the parcel that is used or intended for human habitation,
33regardless of the number of dwelling units contained on the
34parcel, including a proportionate share of the land included
35in the parcel, if applicable. The portion of such a parcel
-5-1used or intended for use as commercial property or industrial
2property, including a proportionate share of the land included
3in the parcel, if applicable, shall be assigned the appropriate
4classification pursuant to paragraph “c”.
5b. For valuations established for the assessment year
6beginning January 1, 2015, the percentage of actual value as
7equalized by the department of revenue as provided in section
8441.49 at which multiresidential property shall be assessed
9shall be the greater of eighty-six and twenty-five hundredths
10percent or the percentage of actual value determined by the
11department of revenue at which property assessed as residential
12property is assessed for the same assessment year under
13subsection 4. For valuations established for the assessment
14year beginning January 1, 2016, the percentage of actual
15value as equalized by the department of revenue as provided
16in section 441.49 at which multiresidential property shall be
17assessed shall be the greater of eighty-two and five-tenths
18percent or the percentage of actual value determined by the
19department of revenue at which property assessed as residential
20property is assessed for the same assessment year under
21subsection 4. For valuations established for the assessment
22year beginning January 1, 2017, the percentage of actual
23value as equalized by the department of revenue as provided
24in section 441.49 at which multiresidential property shall be
25assessed shall be the greater of seventy-eight and seventy-five
26hundredths percent or the percentage of actual value determined
27by the department of revenue at which property assessed as
28residential property is assessed for the same assessment
29year under subsection 4. For valuations established for the
30assessment year beginning January 1, 2018, the percentage of
31actual value as equalized by the department of revenue as
32provided in section 441.49 at which multiresidential property
33shall be assessed shall be the greater of seventy-five percent
34or the percentage of actual value determined by the department
35of revenue at which property assessed as residential property
-6-1is assessed for the same assessment year under subsection 4.
2For valuations established for the assessment year beginning
3January 1, 2019, the percentage of actual value as equalized
4by the department of revenue as provided in section 441.49 at
5which multiresidential property shall be assessed shall be the
6greater of seventy-one and twenty-five hundredths percent or
7the percentage of actual value determined by the department
8of revenue at which property assessed as residential property
9is assessed for the same assessment year under subsection 4.
10For valuations established for the assessment year beginning
11January 1, 2020, the percentage of actual value as equalized
12by the department of revenue as provided in section 441.49
13at which multiresidential property shall be assessed shall
14be the greater of sixty-seven and five-tenths percent or the
15percentage of actual value determined by the department of
16revenue at which property assessed as residential property
17is assessed for the same assessment year under subsection 4.
18For valuations established for the assessment year beginning
19January 1, 2021, the percentage of actual value as equalized
20by the department of revenue as provided in section 441.49 at
21which multiresidential property shall be assessed shall be the
22greater of sixty-three and seventy-five hundredths percent or
23the percentage of actual value determined by the department
24of revenue at which property assessed as residential property
25is assessed for the same assessment year under subsection 4.
26For valuations established for the assessment year beginning
27January 1, 2022, and each assessment year thereafter, the
28percentage of actual value as equalized by the department of
29revenue as provided in section 441.49 at which multiresidential
30property shall be assessed shall be equal to the percentage of
31actual value determined by the department of revenue at which
32property assessed as residential property is assessed under
33subsection 4 for the same assessment year.
34c. (1) For the assessment year beginning January 1,
352015, for parcels that, in part, satisfy the requirements for
-7-1classification as multiresidential property, the assessor
2shall assign to that portion of the parcel the classification
3of multiresidential property and to such other portions of
4the parcel the property classification for which such other
5portions qualify.
6(2) Beginning with valuations established on or after
7January 1, 2016, but before January 1, 2022, for parcels for
8which a portion of the parcel satisfies the requirements
9for classification as multiresidential property pursuant
10to paragraph “a”, subparagraph (2), subparagraph division
11(e) or (f) (5) or (6), the assessor shall assign to that
12portion of the parcel the classification of multiresidential
13property and to such other portions of the parcel the property
14classification for which such other portions qualify.
15 Sec. 7. Section 441.21, Code 2021, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 14. a. Beginning with valuations
18established on or after January 1, 2022, all of the following
19shall be classified and valued as residential property:
20(1) Property primarily used or intended for human
21habitation containing two or fewer dwelling units.
22(2) Mobile home parks.
23(3) Manufactured home communities.
24(4) Land-leased communities.
25(5) Assisted living facilities.
26(6) A parcel primarily used or intended for human habitation
27containing three or more separate dwelling units. If a
28portion of such a parcel is used or intended for a purpose
29that, if the primary use, would be classified as commercial
30property or industrial property, each such portion, including
31a proportionate share of the land included in the parcel, if
32applicable, shall be assigned the appropriate classification
33pursuant to paragraph “b”.
34(7) For a parcel that is primarily used or intended for use
35as commercial property or industrial property, that portion
-8-1of the parcel that is used or intended for human habitation,
2regardless of the number of dwelling units contained on the
3parcel, including a proportionate share of the land included
4in the parcel, if applicable. The portion of such a parcel
5used or intended for use as commercial property or industrial
6property, including a proportionate share of the land included
7in the parcel, if applicable, shall be assigned the appropriate
8classification pursuant to paragraph “b”.
9b. Beginning with valuations established on or after
10January 1, 2022, for parcels for which a portion of the parcel
11satisfies the requirements for classification as residential
12property pursuant to paragraph “a”, subparagraph (6) or (7),
13the assessor shall assign to that portion of the parcel the
14classification of residential property and to such other
15portions of the parcel the property classification for which
16such other portions qualify.
17c. Property that is rented or leased to low-income
18individuals and families as authorized by section 42 of the
19Internal Revenue Code, and that has not been withdrawn from
20section 42 assessment procedures under subsection 2 of this
21section, or a hotel, motel, inn, or other building where rooms
22or dwelling units are usually rented for less than one month
23shall not be classified as residential property under this
24subsection.
25d. As used in this subsection:
26(1) “Assisted living facility” means property for providing
27assisted living as defined in section 231C.2. “Assisted living
28facility” also includes a health care facility, as defined in
29section 135C.1, an elder group home, as defined in section
30231B.1, a child foster care facility under chapter 237, or
31property used for a hospice program as defined in section
32135J.1.
33(2) “Dwelling unit” means an apartment, group of rooms,
34or single room which is occupied as separate living quarters
35or, if vacant, is intended for occupancy as separate living
-9-1quarters, in which a tenant can live and sleep separately from
2any other persons in the building.
3(3) “Land-leased community” means the same as defined in
4sections 335.30A and 414.28A.
5(4) “Manufactured home community” means the same as a
6land-leased community.
7(5) “Mobile home park” means the same as defined in section
8435.1.
9 Sec. 8. Section 558.46, subsection 5, Code 2021, is amended
10by striking the subsection.
11 Sec. 9. SAVINGS PROVISION. This Act, pursuant to section
124.13, does not affect the operation of, or prohibit the
13application of, prior provisions of the Code sections amended
14by this Act, or rules adopted under chapter 17A to administer
15such prior provisions, for assessment years beginning before
16January 1, 2022, and for duties, powers, protests, appeals,
17proceedings, actions, or remedies attributable to an assessment
18year beginning before January 1, 2022.
19 Sec. 10. EFFECTIVE DATE. This Act takes effect January 1,
202022.
21 Sec. 11. APPLICABILITY. This Act applies to assessment
22years beginning on or after January 1, 2022.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill relates to property tax classifications,
27assessment limitations, and administration.
28Code section 441.21 provides that for assessment years
29beginning on or after January 1, 2015, property can be
30classified as multiresidential property. Multiresidential
31property largely includes property that prior to the assessment
32year beginning January 1, 2015, was classified as commercial
33property and includes mobile home parks, manufactured
34home communities, land-leased communities, assisted living
35facilities, and property primarily used or intended for human
-10-1habitation containing three or more separate dwelling units.
2The percentage of actual value at which multiresidential
3property is subject to tax has been reduced each assessment
4year beginning with the 2015 assessment year. The percentage
5of actual value is reduced by law until the percentage is equal
6to or below the percentage that is applicable to residential
7property, at which time the two classifications are subject to
8the same percentage, but not later than the assessment year
9beginning January 1, 2022.
10The bill eliminates the classification of multiresidential
11property for assessment years beginning on or after January
121, 2022. The bill also provides that the types of property
13previously classified as multiresidential will, for assessment
14years beginning on or after January 1, 2022, be classified as
15residential property.
16The bill makes corresponding changes to various other
17provisions of law to reflect the elimination of the
18multiresidential property classification.
19The bill takes effect January 1, 2022, and applies to
20assessment years beginning on or after that date.
21The bill does not affect the operation of, or prohibit
22the application of, prior provisions of the Code sections
23amended by the bill, or rules adopted to administer such prior
24provisions, for assessment years beginning before January 1,
252022, and for duties, powers, protests, appeals, proceedings,
26actions, or remedies attributable to an assessment year
27beginning before January 1, 2022.
-11-md/jh
2limitations, and administration, and including effective
3date and applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 404.2, subsection 2, paragraph f, Code
22021, is amended to read as follows:
3f. A statement specifying whether the revitalization is
4applicable to none, some, or all of the property assessed as
5residential, multiresidential, agricultural, commercial, or
6industrial property within the designated area or a combination
7thereof and whether the revitalization is for rehabilitation
8and additions to existing buildings or new construction or
9both. If revitalization is made applicable only to some
10property within an assessment classification, the definition of
11that subset of eligible property must be by uniform criteria
12which further some planning objective identified in the plan.
13The city shall state how long it is estimated that the area
14shall remain a designated revitalization area which time
15shall be longer than one year from the date of designation
16and shall state any plan by the city to issue revenue bonds
17for revitalization projects within the area. For a county,
18a revitalization area shall include only property which
19will be used as industrial property, commercial property,
20multiresidential property, or residential property. However, a
21county shall not provide a tax exemption under this chapter to
22commercial property, multiresidential property, or residential
23property which is located within the limits of a city.
24 Sec. 2. Section 404.3, subsection 4, paragraph a, Code 2021,
25is amended by striking the paragraph and inserting in lieu
26thereof the following:
27a. All qualified real estate assessed as residential
28property is eligible to receive a one hundred percent exemption
29from taxation on the actual value added by the improvements.
30 Sec. 3. Section 441.21, subsection 2, Code 2021, is amended
31to read as follows:
322. In the event market value of the property being assessed
33cannot be readily established in the foregoing manner, then
34the assessor may determine the value of the property using the
35other uniform and recognized appraisal methods including its
-1-1productive and earning capacity, if any, industrial conditions,
2its cost, physical and functional depreciation and obsolescence
3and replacement cost, and all other factors which would assist
4in determining the fair and reasonable market value of the
5property but the actual value shall not be determined by use
6of only one such factor. The following shall not be taken into
7consideration: Special value or use value of the property to
8its present owner, and the goodwill or value of a business
9which uses the property as distinguished from the value of
10the property as property. In addition, for assessment years
11beginning on or after January 1, 2018, and unless otherwise
12required for property valued by the department of revenue
13pursuant to chapters 428, 433, 437, and 438, the assessor
14shall not take into consideration and shall not request from
15any person sales or receipts data, expense data, balance
16sheets, bank account information, or other data related to
17the financial condition of a business operating in whole or
18in part on the property if the property is both classified as
19commercial or industrial property and owned and used by the
20owner of the business. However, in assessing property that
21is rented or leased to low-income individuals and families
22as authorized by section 42 of the Internal Revenue Code,
23as amended, and which section limits the amount that the
24individual or family pays for the rental or lease of units
25in the property, the assessor shall, unless the owner elects
26to withdraw the property from the assessment procedures for
27section 42 property, use the productive and earning capacity
28from the actual rents received as a method of appraisal and
29shall take into account the extent to which that use and
30limitation reduces the market value of the property. The
31assessor shall not consider any tax credit equity or other
32subsidized financing as income provided to the property in
33determining the assessed value. The property owner shall
34notify the assessor when property is withdrawn from section 42
35eligibility under the Internal Revenue Code or if the owner
-2-1elects to withdraw the property from the assessment procedures
2for section 42 property under this subsection. The property
3shall not be subject to section 42 assessment procedures
4for the assessment year for which section 42 eligibility is
5withdrawn or an election is made. This notification must
6be provided to the assessor no later than March 1 of the
7assessment year or the owner will be subject to a penalty of
8five hundred dollars for that assessment year. The penalty
9shall be collected at the same time and in the same manner
10as regular property taxes. An election to withdraw from the
11assessment procedures for section 42 property is irrevocable.
12Property that is withdrawn from the assessment procedures
13for section 42 property shall be classified and assessed as
14multiresidential residential property unless the property
15otherwise fails to meet the requirements of subsection 13 14.
16Upon adoption of uniform rules by the department of revenue
17or succeeding authority covering assessments and valuations
18of such properties, the valuation on such properties shall be
19determined in accordance with such rules and in accordance with
20forms and guidelines contained in the real property appraisal
21manual prepared by the department as updated from time to time
22for assessment purposes to assure uniformity, but such rules,
23forms, and guidelines shall not be inconsistent with or change
24the foregoing means of determining the actual, market, taxable
25and assessed values.
26 Sec. 4. Section 441.21, subsection 8, paragraph b, Code
272021, is amended to read as follows:
28b. Notwithstanding paragraph “a”, any construction or
29installation of a solar energy system on property classified
30as agricultural, residential, commercial, multiresidential, or
31industrial property shall not increase the actual, assessed,
32and taxable values of the property for five full assessment
33years.
34 Sec. 5. Section 441.21, subsections 9 and 10, Code 2021, are
35amended to read as follows:
-3- 19. Not later than November 1, 1979, and November 1 of each
2subsequent year, the director shall certify to the county
3auditor of each county the percentages of actual value at
4which residential property, agricultural property, commercial
5property, industrial property, multiresidential property,
6 property valued by the department of revenue pursuant to
7chapter 434, and property valued by the department of revenue
8pursuant to chapters 428, 433, 437, and 438 in each assessing
9jurisdiction in the county shall be assessed for taxation. The
10county auditor shall proceed to determine the assessed values
11of agricultural property, residential property, commercial
12property, industrial property, multiresidential property,
13 property valued by the department of revenue pursuant to
14chapter 434, and property valued by the department of revenue
15pursuant to chapters 428, 433, 437, and 438 by applying such
16percentages to the current actual value of such property,
17as reported to the county auditor by the assessor, and the
18assessed values so determined shall be the taxable values of
19such properties upon which the levy shall be made.
2010. The percentage of actual value computed by the
21department of revenue for agricultural property, residential
22property, commercial property, industrial property,
23multiresidential property, property valued by the department
24of revenue pursuant to chapter 434, and property valued by the
25department of revenue pursuant to chapters 428, 433, 437, and
26438 and used to determine assessed values of those classes
27of property does not constitute a rule as defined in section
2817A.2, subsection 11.
29 Sec. 6. Section 441.21, subsection 13, paragraphs a, b, and
30c, Code 2021, are amended to read as follows:
31a. (1) For the assessment year beginning January 1, 2015,
32mobile home parks, manufactured home communities, land-leased
33communities, assisted living facilities, property primarily
34used or intended for human habitation containing three or more
35separate dwelling units, and that portion of a building that is
-4-1used or intended for human habitation and a proportionate share
2of the land upon which the building is situated, regardless of
3the number of dwelling units located in the building, if the
4use for human habitation is not the primary use of the building
5and such building is not otherwise classified as residential
6property, shall be valued as a separate class of property
7known as multiresidential property and, excluding properties
8referred to in section 427A.1, subsection 9, shall be assessed
9at a percentage of its actual value, as determined in this
10subsection.
11(2) Beginning with valuations established on or after
12January 1, 2016, but before January 1, 2022, all of the
13following shall be valued as a separate class of property
14known as multiresidential property and, excluding properties
15referred to in section 427A.1, subsection 9, shall be assessed
16at a percentage of its actual value, as determined in this
17subsection:
18(a) (1) Mobile home parks.
19(b) (2) Manufactured home communities.
20(c) (3) Land-leased communities.
21(d) (4) Assisted living facilities.
22(e) (5) A parcel primarily used or intended for human
23habitation containing three or more separate dwelling units.
24If a portion of such a parcel is used or intended for a purpose
25that, if the primary use, would be classified as commercial
26property or industrial property, each such portion, including
27a proportionate share of the land included in the parcel, if
28applicable, shall be assigned the appropriate classification
29pursuant to paragraph “c”.
30(f) (6) For a parcel that is primarily used or intended for
31use as commercial property or industrial property, that portion
32of the parcel that is used or intended for human habitation,
33regardless of the number of dwelling units contained on the
34parcel, including a proportionate share of the land included
35in the parcel, if applicable. The portion of such a parcel
-5-1used or intended for use as commercial property or industrial
2property, including a proportionate share of the land included
3in the parcel, if applicable, shall be assigned the appropriate
4classification pursuant to paragraph “c”.
5b. For valuations established for the assessment year
6beginning January 1, 2015, the percentage of actual value as
7equalized by the department of revenue as provided in section
8441.49 at which multiresidential property shall be assessed
9shall be the greater of eighty-six and twenty-five hundredths
10percent or the percentage of actual value determined by the
11department of revenue at which property assessed as residential
12property is assessed for the same assessment year under
13subsection 4. For valuations established for the assessment
14year beginning January 1, 2016, the percentage of actual
15value as equalized by the department of revenue as provided
16in section 441.49 at which multiresidential property shall be
17assessed shall be the greater of eighty-two and five-tenths
18percent or the percentage of actual value determined by the
19department of revenue at which property assessed as residential
20property is assessed for the same assessment year under
21subsection 4. For valuations established for the assessment
22year beginning January 1, 2017, the percentage of actual
23value as equalized by the department of revenue as provided
24in section 441.49 at which multiresidential property shall be
25assessed shall be the greater of seventy-eight and seventy-five
26hundredths percent or the percentage of actual value determined
27by the department of revenue at which property assessed as
28residential property is assessed for the same assessment
29year under subsection 4. For valuations established for the
30assessment year beginning January 1, 2018, the percentage of
31actual value as equalized by the department of revenue as
32provided in section 441.49 at which multiresidential property
33shall be assessed shall be the greater of seventy-five percent
34or the percentage of actual value determined by the department
35of revenue at which property assessed as residential property
-6-1is assessed for the same assessment year under subsection 4.
2For valuations established for the assessment year beginning
3January 1, 2019, the percentage of actual value as equalized
4by the department of revenue as provided in section 441.49 at
5which multiresidential property shall be assessed shall be the
6greater of seventy-one and twenty-five hundredths percent or
7the percentage of actual value determined by the department
8of revenue at which property assessed as residential property
9is assessed for the same assessment year under subsection 4.
10For valuations established for the assessment year beginning
11January 1, 2020, the percentage of actual value as equalized
12by the department of revenue as provided in section 441.49
13at which multiresidential property shall be assessed shall
14be the greater of sixty-seven and five-tenths percent or the
15percentage of actual value determined by the department of
16revenue at which property assessed as residential property
17is assessed for the same assessment year under subsection 4.
18For valuations established for the assessment year beginning
19January 1, 2021, the percentage of actual value as equalized
20by the department of revenue as provided in section 441.49 at
21which multiresidential property shall be assessed shall be the
22greater of sixty-three and seventy-five hundredths percent or
23the percentage of actual value determined by the department
24of revenue at which property assessed as residential property
25is assessed for the same assessment year under subsection 4.
26For valuations established for the assessment year beginning
27January 1, 2022, and each assessment year thereafter, the
28percentage of actual value as equalized by the department of
29revenue as provided in section 441.49 at which multiresidential
30property shall be assessed shall be equal to the percentage of
31actual value determined by the department of revenue at which
32property assessed as residential property is assessed under
33subsection 4 for the same assessment year.
34c. (1) For the assessment year beginning January 1,
352015, for parcels that, in part, satisfy the requirements for
-7-1classification as multiresidential property, the assessor
2shall assign to that portion of the parcel the classification
3of multiresidential property and to such other portions of
4the parcel the property classification for which such other
5portions qualify.
6(2) Beginning with valuations established on or after
7January 1, 2016, but before January 1, 2022, for parcels for
8which a portion of the parcel satisfies the requirements
9for classification as multiresidential property pursuant
10to paragraph “a”, subparagraph (2), subparagraph division
11(e) or (f) (5) or (6), the assessor shall assign to that
12portion of the parcel the classification of multiresidential
13property and to such other portions of the parcel the property
14classification for which such other portions qualify.
15 Sec. 7. Section 441.21, Code 2021, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 14. a. Beginning with valuations
18established on or after January 1, 2022, all of the following
19shall be classified and valued as residential property:
20(1) Property primarily used or intended for human
21habitation containing two or fewer dwelling units.
22(2) Mobile home parks.
23(3) Manufactured home communities.
24(4) Land-leased communities.
25(5) Assisted living facilities.
26(6) A parcel primarily used or intended for human habitation
27containing three or more separate dwelling units. If a
28portion of such a parcel is used or intended for a purpose
29that, if the primary use, would be classified as commercial
30property or industrial property, each such portion, including
31a proportionate share of the land included in the parcel, if
32applicable, shall be assigned the appropriate classification
33pursuant to paragraph “b”.
34(7) For a parcel that is primarily used or intended for use
35as commercial property or industrial property, that portion
-8-1of the parcel that is used or intended for human habitation,
2regardless of the number of dwelling units contained on the
3parcel, including a proportionate share of the land included
4in the parcel, if applicable. The portion of such a parcel
5used or intended for use as commercial property or industrial
6property, including a proportionate share of the land included
7in the parcel, if applicable, shall be assigned the appropriate
8classification pursuant to paragraph “b”.
9b. Beginning with valuations established on or after
10January 1, 2022, for parcels for which a portion of the parcel
11satisfies the requirements for classification as residential
12property pursuant to paragraph “a”, subparagraph (6) or (7),
13the assessor shall assign to that portion of the parcel the
14classification of residential property and to such other
15portions of the parcel the property classification for which
16such other portions qualify.
17c. Property that is rented or leased to low-income
18individuals and families as authorized by section 42 of the
19Internal Revenue Code, and that has not been withdrawn from
20section 42 assessment procedures under subsection 2 of this
21section, or a hotel, motel, inn, or other building where rooms
22or dwelling units are usually rented for less than one month
23shall not be classified as residential property under this
24subsection.
25d. As used in this subsection:
26(1) “Assisted living facility” means property for providing
27assisted living as defined in section 231C.2. “Assisted living
28facility” also includes a health care facility, as defined in
29section 135C.1, an elder group home, as defined in section
30231B.1, a child foster care facility under chapter 237, or
31property used for a hospice program as defined in section
32135J.1.
33(2) “Dwelling unit” means an apartment, group of rooms,
34or single room which is occupied as separate living quarters
35or, if vacant, is intended for occupancy as separate living
-9-1quarters, in which a tenant can live and sleep separately from
2any other persons in the building.
3(3) “Land-leased community” means the same as defined in
4sections 335.30A and 414.28A.
5(4) “Manufactured home community” means the same as a
6land-leased community.
7(5) “Mobile home park” means the same as defined in section
8435.1.
9 Sec. 8. Section 558.46, subsection 5, Code 2021, is amended
10by striking the subsection.
11 Sec. 9. SAVINGS PROVISION. This Act, pursuant to section
124.13, does not affect the operation of, or prohibit the
13application of, prior provisions of the Code sections amended
14by this Act, or rules adopted under chapter 17A to administer
15such prior provisions, for assessment years beginning before
16January 1, 2022, and for duties, powers, protests, appeals,
17proceedings, actions, or remedies attributable to an assessment
18year beginning before January 1, 2022.
19 Sec. 10. EFFECTIVE DATE. This Act takes effect January 1,
202022.
21 Sec. 11. APPLICABILITY. This Act applies to assessment
22years beginning on or after January 1, 2022.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill relates to property tax classifications,
27assessment limitations, and administration.
28Code section 441.21 provides that for assessment years
29beginning on or after January 1, 2015, property can be
30classified as multiresidential property. Multiresidential
31property largely includes property that prior to the assessment
32year beginning January 1, 2015, was classified as commercial
33property and includes mobile home parks, manufactured
34home communities, land-leased communities, assisted living
35facilities, and property primarily used or intended for human
-10-1habitation containing three or more separate dwelling units.
2The percentage of actual value at which multiresidential
3property is subject to tax has been reduced each assessment
4year beginning with the 2015 assessment year. The percentage
5of actual value is reduced by law until the percentage is equal
6to or below the percentage that is applicable to residential
7property, at which time the two classifications are subject to
8the same percentage, but not later than the assessment year
9beginning January 1, 2022.
10The bill eliminates the classification of multiresidential
11property for assessment years beginning on or after January
121, 2022. The bill also provides that the types of property
13previously classified as multiresidential will, for assessment
14years beginning on or after January 1, 2022, be classified as
15residential property.
16The bill makes corresponding changes to various other
17provisions of law to reflect the elimination of the
18multiresidential property classification.
19The bill takes effect January 1, 2022, and applies to
20assessment years beginning on or after that date.
21The bill does not affect the operation of, or prohibit
22the application of, prior provisions of the Code sections
23amended by the bill, or rules adopted to administer such prior
24provisions, for assessment years beginning before January 1,
252022, and for duties, powers, protests, appeals, proceedings,
26actions, or remedies attributable to an assessment year
27beginning before January 1, 2022.
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