House File 643 - IntroducedA Bill ForAn Act 1relating to determinations of actual value of certain
2agricultural property based on productivity and net earning
3capacity.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 441.21, subsection 1, paragraph e, Code
22021, is amended to read as follows:
   3e.  (1)  The actual value of agricultural property shall
4be determined on the basis of productivity and net earning
5capacity of the property determined on the basis of its use
6for agricultural purposes capitalized at a rate of seven
7percent and applied uniformly among counties and among classes
8of property. Any formula or method employed to determine
9productivity and net earning capacity of property shall be
10adopted in full by rule.
   11(2)  For assessment years beginning on or after January
121, 2022, in addition to adjustments to productivity and net
13earning capacity based on the per acre drainage and levee
14district taxes in the county assessed under chapter 468 in the
15rules adopted by the department under subparagraph (1), the
16actual value of each acre of agricultural property subject
17to drainage and levee district taxes for the assessment year
18shall be reduced by an amount equal to the difference, but
19not less than zero, between the actual per acre drainage and
20levee district taxes imposed on the property for the assessment
21year minus the per acre drainage and levee district taxes in
22the county used to determine productivity and net earning
23capacity for the assessment year under the rules adopted by the
24department under subparagraph (1).
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
   28Code section 441.21 provides that the actual value of
29agricultural property shall be determined on the basis
30of productivity and net earning capacity of the property
31determined on the basis of its use for agricultural purposes
32capitalized at a rate of 7 percent and applied uniformly among
33counties and among classes of property.
   34This bill provides that for assessment years beginning
35on or after January 1, 2022, in addition to adjustments to
-1-1productivity and net earning capacity based on the per acre
2drainage and levee district taxes in the county assessed under
3Code chapter 468, the actual value of each acre of agricultural
4property subject to drainage and levee district taxes for the
5assessment year shall be reduced by an amount equal to the
6difference, but not less than zero, between the actual per
7acre drainage and levee district taxes imposed on the property
8for the assessment year minus the per acre drainage and levee
9district taxes in the county used to determine productivity and
10net earning capacity for the assessment year.
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