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Senate File 295 - EnrolledAn Actrelating to state and local finances by establishing a business
property tax credit for commercial, industrial, and railway
property, establishing and modifying property assessment
limitations, providing for commercial and industrial
property tax replacement payments, providing for the
classification of multiresidential property, modifying
provisions for the taxation of telecommunications company
property, providing for the study of the taxation of
telecommunications company property, providing a taxpayers
trust fund tax credit, modifying provisions relating to
the property assessment appeal board, modifying the amount
of the earned income tax credit, making appropriations,
providing penalties, and including effective date,
implementation, retroactive applicability, and other
applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
BUSINESS PROPERTY TAX CREDIT
Section 1. Section 331.512, Code 2013, is amended by adding
the following new subsection:
NEW SUBSECTION. 4A. Carry out duties relating to the
business property tax credit as provided in chapter 426C.
Sec. 2. Section 331.559, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION. 14A. Carry out duties relating to the
business property tax credit as provided in chapter 426C.
Sec. 3. NEW SECTION. 426C.1 Definitions.
For the purposes of this chapter, unless the context
otherwise requires:
-1- 1. “Contiguous parcels” means any of the following:
a. Parcels that share a common boundary.
b. Parcels within the same building or structure regardless
of whether the parcels share a common boundary.
c. Permanent improvements to the land that are situated
on one or more parcels of land that are assessed and taxed
separately from the permanent improvements if the parcels of
land upon which the permanent improvements are situated share
a common boundary.
2. “Department” means the department of revenue.
3. “Fund” means the business property tax credit fund
created in section 426C.2.
4. “Parcel” means as defined in section 445.1 and, for
purposes of business property tax credits claimed for fiscal
years beginning on or after January 1, 2016, “parcel” also means
that portion of a parcel assigned to be commercial property,
industrial property, or railway property under chapter 434
pursuant to section 441.21, subsection 13, paragraph “c”.
5. “Property unit” means contiguous parcels all of which
are located within the same county, with the same property tax
classification, are owned by the same person, and are operated
by that person for a common use and purpose.
Sec. 4. NEW SECTION. 426C.2 Business property tax credit
fund —— appropriation.
1. A business property tax credit fund is created in the
state treasury under the authority of the department. For the
fiscal year beginning July 1, 2014, there is appropriated from
the general fund of the state to the department to be credited
to the fund, the sum of fifty million dollars to be used for
business property tax credits authorized in this chapter. For
the fiscal year beginning July 1, 2015, there is appropriated
from the general fund of the state to the department to be
credited to the fund, the sum of one hundred million dollars to
be used for business property tax credits authorized in this
chapter. For the fiscal year beginning July 1, 2016, and each
fiscal year thereafter, there is appropriated from the general
fund of the state to the department to be credited to the fund,
the sum of one hundred twenty-five million dollars to be used
for business property tax credits authorized in this chapter.
2. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys deposited in the fund shall be credited to
the fund. Moneys in the fund are not subject to the provisions
of section 8.33 and shall not be transferred, used, obligated,
-1-appropriated, or otherwise encumbered except as provided in
this chapter.
Sec. 5. NEW SECTION. 426C.3 Claims for credit.
1. Each person who wishes to claim the credit allowed
under this chapter shall obtain the appropriate forms from the
assessor and file the claim with the assessor. The director
of revenue shall prescribe suitable forms and instructions for
such claims, and make such forms and instructions available to
the assessors.
2. a. Claims for the business property tax credit shall be
filed not later than March 15 preceding the fiscal year during
which the taxes for which the credit is claimed are due and
payable.
b. A claim for credit filed after the deadline for filing
claims shall be considered as a claim for the following year.
3. Upon the filing of a claim and allowance of the credit,
the credit shall be allowed on the parcel or property unit for
successive years without further filing as long as the parcel
or property unit satisfies the requirements for the credit. If
the parcel or property unit ceases to qualify for the credit
under this chapter, the owner shall provide written notice
to the assessor by the date for filing claims specified in
subsection 2 following the date on which the parcel or property
unit ceases to qualify for the credit.
4. The assessor shall remit the claims for credit to the
county auditor with the assessor’s recommendation for allowance
or disallowance. If the assessor recommends disallowance
of a claim, the assessor shall submit the reasons for the
recommendation, in writing, to the county auditor. The county
auditor shall forward the claims and recommendations to the
board of supervisors. The board shall allow or disallow the
claims.
5. For each claim and allowance of a credit for a property
unit, the county auditor shall calculate the average of all
consolidated levy rates applicable to the several parcels
within the property unit. All claims for credit which have
been allowed by the board of supervisors, the actual value of
such parcels and property units applicable to the fiscal year
for which the credit is claimed that are subject to assessment
and taxation prior to imposition of any applicable assessment
limitation, the consolidated levy rates for such parcels and
the average consolidated levy rates for such property units
applicable to the fiscal year for which the credit is claimed,
-2-and the taxing districts in which the parcel or property unit
is located, shall be certified on or before June 30, in each
year, by the county auditor to the department.
6. The assessor shall maintain a permanent file of current
business property tax credits. The assessor shall file a
notice of transfer of property for which a credit has been
allowed when notice is received from the office of the county
recorder, from the person who sold or transferred the property,
or from the personal representative of a deceased property
owner. The county recorder shall give notice to the assessor
of each transfer of title filed in the recorder’s office. The
notice from the county recorder shall describe the property
transferred, the name of the person transferring title to the
property, and the name of the person to whom title to the
property has been transferred.
7. When all or a portion of a parcel or property unit that
is allowed a credit under this chapter is sold, transferred,
or ownership otherwise changes, the buyer, transferee, or
new owner who wishes to receive the credit shall refile the
claim for credit. In addition, when a portion of a parcel or
property unit that is allowed a credit under this chapter is
sold, transferred, or ownership otherwise changes, the owner of
the portion of the parcel or property unit for which ownership
did not change shall refile the claim for credit.
Sec. 6. NEW SECTION. 426C.4 Eligibility and amount of
credit.
1. a. Except as provided in paragraph “b”, parcels
classified and taxed as commercial property, industrial
property, or railway property under chapter 434 are eligible
for a credit under this chapter. A person may claim and
receive one credit under this chapter for each eligible parcel
unless the parcel is part of a property unit for which a credit
is claimed. A person may claim and receive one credit under
this chapter for each property unit. A credit approved for
a property unit shall be allocated to the several parcels
within the property unit in the proportion that each parcel’s
total amount of property taxes due and payable bears to the
total amount of property taxes due and payable on the property
unit. Only property units comprised of property assessed as
commercial property, industrial property, or railway property
under chapter 434 are eligible for a credit under this chapter.
The classification of property used to determine eligibility
for the credit under this chapter shall be the classification
-3-of the property for the assessment year used to calculate the
taxes due and payable in the fiscal year for which the credit
is claimed.
b. All of the following shall not be eligible to receive a
credit under this chapter or be part of a property unit that
receives a credit under this chapter:
(1) Property that is rented or leased to low-income
individuals and families as authorized by section 42 of the
Internal Revenue Code, as amended, and that is subject to
assessment procedures relating to section 42 property under
section 441.21, subsection 2, for the applicable assessment
year.
(2) For credits claimed for the fiscal year beginning July
1, 2014, and the fiscal year beginning July 1, 2015, property
that is a mobile home park, manufactured home community,
land-leased community, assisted living facility, as those terms
are defined in section 441.21, subsection 13, as enacted in
division III of this Act, or that is property primarily used or
intended for human habitation containing three or more separate
dwelling units.
2. Using the actual value of each parcel or property unit
and the consolidated levy rate for each parcel or the average
consolidated levy rate for each property unit, as certified
by the county auditor to the department under section 426C.3,
subsection 5, the department shall calculate, for each fiscal
year, an initial amount of actual value for use in determining
the amount of the credit for each such parcel or property
unit so as to provide the maximum possible credit according
to the credit formula and limitations under subsection 3,
and to provide a total dollar amount of credits against the
taxes due and payable in the fiscal year equal to ninety-eight
percent of the moneys in the fund following the deposit of the
appropriation for the fiscal year and including interest or
earnings credited to the fund.
3. a. The amount of the credit for each parcel or property
unit for which a claim for credit under this chapter has been
approved shall be calculated under paragraph “b” using the
lesser of the initial amount of actual value determined by the
department under subsection 2, and the amount of actual value
of the parcel or property unit certified by the county auditor
under section 426C.3, subsection 5.
b. The amount of the credit for each parcel or property
unit for which a claim for credit under this chapter has been
-4-approved shall be equal to the product of the amount of actual
value determined under paragraph “a” times the difference,
stated as a percentage, between the assessment limitation
percentage applicable to the parcel or property unit under
section 441.21, subsection 5, and the assessment limitation
percentage applicable to residential property under section
441.21, subsection 4, divided by one thousand dollars, and
then multiplied by the consolidated levy rate or average
consolidated levy rate per one thousand dollars of taxable
value applicable to the parcel or property unit for the fiscal
year for which the credit is claimed as certified by the county
auditor under section 426C.3, subsection 5.
Sec. 7. NEW SECTION. 426C.5 Payment to counties.
1. Annually the department shall certify to the county
auditor of each county the amounts of the business property
tax credits allowed in the county. Each county auditor shall
then enter the credits against the tax levied on each eligible
parcel or property unit in the county, designating on the tax
lists the credit as being paid from the fund. Each taxing
district shall receive its share of the business property tax
credit allowed on each eligible parcel or property unit in
such taxing district in the proportion that the levy made by
such taxing district upon the parcel or property unit bears
to the total levy upon the parcel or property unit by all
taxing districts. However, the several taxing districts shall
not draw the moneys so credited until after the semiannual
allocations have been received by the county treasurer, as
provided in this section. Each county treasurer shall show on
each taxpayer receipt the amount of credit received from the
fund.
2. The director of revenue shall authorize the department of
administrative services to draw warrants on the fund payable to
the county treasurers of the several counties of the state in
the amounts certified by the department.
3. The amount due each county shall be paid in two payments
on November 15 and March 15 of each fiscal year, drawn upon
warrants payable to the respective county treasurers. The two
payments shall be as nearly equal as possible.
Sec. 8. NEW SECTION. 426C.6 Appeals.
1. If the board of supervisors disallows a claim for credit
under section 426C.3, subsection 4, the board of supervisors
shall send written notice, by mail, to the claimant at the
claimant’s last known address. The notice shall state the
-5-reasons for disallowing the claim for the credit. The board
of supervisors is not required to send notice that a claim for
credit is disallowed if the claimant voluntarily withdraws
the claim. Any person whose claim is disallowed under the
provisions of this chapter may appeal from the action of the
board of supervisors to the district court of the county in
which the parcel or property unit is located by giving written
notice of such appeal to the county auditor within twenty days
from the date of mailing of notice of such action by the board
of supervisors.
2. If a claim for credit is disallowed by the board of
supervisors, and such action is subsequently reversed on
appeal, the credit shall be allowed on the applicable parcel or
property unit, and the director of revenue, the county auditor,
and the county treasurer shall provide the credit and change
their books and records accordingly. In the event the claimant
has paid one or both of the installments of the tax payable
in the year or years in question, remittance shall be made to
the claimant of the amount of such credit. The amount of such
credit awarded on appeal shall be allocated and paid from the
balance remaining in the fund.
Sec. 9. NEW SECTION. 426C.7 Audit —— recalculation or
denial.
1. If on the audit of a credit provided under this chapter,
the director of revenue determines the amount of the credit
to have been incorrectly calculated or that the credit is
not allowable, the director shall recalculate the credit and
notify the claimant and the county auditor of the recalculation
or denial and the reasons for it. The director shall not
adjust a credit after three years from October 31 of the year
in which the claim for the credit was filed. If the credit
has been paid, the director shall give notification to the
claimant, the county treasurer, and the applicable assessor
of the recalculation or denial of the credit and the county
treasurer shall proceed to collect the tax owed in the same
manner as other property taxes due and payable are collected,
if the parcel or property unit for which the credit was allowed
is still owned by the claimant. If the parcel or property unit
for which the credit was allowed is not owned by the claimant,
the amount may be recovered from the claimant by assessment in
the same manner that income taxes are assessed under sections
422.26 and 422.30. The amount of such erroneous credit, when
collected, shall be deposited in the fund.
-6- 2. The claimant or board of supervisors may appeal any
decision of the director of revenue to the state board of tax
review pursuant to section 421.1, subsection 5. The claimant,
the board of supervisors, or the director of revenue may seek
judicial review of the action of the state board of tax review
in accordance with chapter 17A.
Sec. 10. NEW SECTION. 426C.8 False claim —— penalty.
A person who makes a false claim for the purpose of obtaining
a credit provided for in this chapter or who knowingly receives
the credit without being legally entitled to it is guilty of a
fraudulent practice. The claim for a credit of such a person
shall be disallowed and if the credit has been paid the amount
shall be recovered in the manner provided in section 426C.7.
In such cases, the director of revenue shall send a notice of
disallowance of the credit.
Sec. 11. NEW SECTION. 426C.9 Rules.
The director of revenue shall prescribe forms, instructions,
and rules as necessary, pursuant to chapter 17A, to carry out
and effectuate the purposes of this chapter.
Sec. 12. IMPLEMENTATION. Notwithstanding the deadline
for filing claims established in section 426C.3, for a credit
against property taxes due and payable during the fiscal year
beginning July 1, 2014, the claim for the credit shall be filed
not later than January 15, 2014.
Sec. 13. APPLICABILITY. This division of this Act applies
to property taxes due and payable in fiscal years beginning on
or after July 1, 2014.
DIVISION II
PROPERTY ASSESSMENT LIMITATION AND REPLACEMENT
Sec. 14. Section 257.3, subsection 1, Code 2013, is amended
by adding the following new paragraph:
NEW PARAGRAPH. d. The amount paid to each school district
for the commercial and industrial property tax replacement
claim under section 441.21A shall be regarded as property tax.
The portion of the payment which is foundation property tax
shall be determined by applying the foundation property tax
rate to the amount computed under section 441.21A, subsection
4, paragraph “a”, and such amount shall be prorated pursuant to
section 441.21A, subsection 2, if applicable.
Sec. 15. Section 331.512, Code 2013, is amended by adding
the following new subsection:
NEW SUBSECTION. 13A. Carry out duties relating to the
calculation and payment of commercial and industrial property
-7-tax replacement claims under section 441.21A.
Sec. 16. Section 331.559, Code 2013, is amended by adding
the following new subsection:
NEW SUBSECTION. 25A. Carry out duties relating to the
calculation and payment of commercial and industrial property
tax replacement claims under section 441.21A.
Sec. 17. Section 441.21, subsection 4, Code 2013, is amended
to read as follows:
4. For valuations established as of January 1, 1979,
the percentage of actual value at which agricultural and
residential property shall be assessed shall be the quotient
of the dividend and divisor as defined in this section. The
dividend for each class of property shall be the dividend
as determined for each class of property for valuations
established as of January 1, 1978, adjusted by the product
obtained by multiplying the percentage determined for that
year by the amount of any additions or deletions to actual
value, excluding those resulting from the revaluation of
existing properties, as reported by the assessors on the
abstracts of assessment for 1978, plus six percent of the
amount so determined. However, if the difference between the
dividend so determined for either class of property and the
dividend for that class of property for valuations established
as of January 1, 1978, adjusted by the product obtained by
multiplying the percentage determined for that year by the
amount of any additions or deletions to actual value, excluding
those resulting from the revaluation of existing properties,
as reported by the assessors on the abstracts of assessment
for 1978, is less than six percent, the 1979 dividend for the
other class of property shall be the dividend as determined for
that class of property for valuations established as of January
1, 1978, adjusted by the product obtained by multiplying
the percentage determined for that year by the amount of
any additions or deletions to actual value, excluding those
resulting from the revaluation of existing properties, as
reported by the assessors on the abstracts of assessment for
1978, plus a percentage of the amount so determined which is
equal to the percentage by which the dividend as determined
for the other class of property for valuations established
as of January 1, 1978, adjusted by the product obtained by
multiplying the percentage determined for that year by the
amount of any additions or deletions to actual value, excluding
those resulting from the revaluation of existing properties,
-8-as reported by the assessors on the abstracts of assessment
for 1978, is increased in arriving at the 1979 dividend for
the other class of property. The divisor for each class of
property shall be the total actual value of all such property
in the state in the preceding year, as reported by the
assessors on the abstracts of assessment submitted for 1978,
plus the amount of value added to said total actual value by
the revaluation of existing properties in 1979 as equalized
by the director of revenue pursuant to section 441.49. The
director shall utilize information reported on abstracts of
assessment submitted pursuant to section 441.45 in determining
such percentage. For valuations established as of January 1,
1980, and each assessment year thereafter beginning before
January 1, 2013, the percentage of actual value as equalized by
the director of revenue as provided in section 441.49 at which
agricultural and residential property shall be assessed shall
be calculated in accordance with the methods provided herein
in this subsection, including the limitation of increases in
agricultural and residential assessed values to the percentage
increase of the other class of property if the other class
increases less than the allowable limit adjusted to include
the applicable and current values as equalized by the director
of revenue, except that any references to six percent in this
subsection shall be four percent. For valuations established
as of January 1, 2013, and each assessment year thereafter,
the percentage of actual value as equalized by the director of
revenue as provided in section 441.49 at which agricultural
and residential property shall be assessed shall be calculated
in accordance with the methods provided in this subsection,
including the limitation of increases in agricultural and
residential assessed values to the percentage increase of the
other class of property if the other class increases less than
the allowable limit adjusted to include the applicable and
current values as equalized by the director of revenue, except
that any references to six percent in this subsection shall be
three percent.
Sec. 18. Section 441.21, subsection 5, Code 2013, is amended
to read as follows:
5. a. For valuations established as of January 1, 1979,
commercial property and industrial property, excluding
properties referred to in section 427A.1, subsection 8, shall
be assessed as a percentage of the actual value of each class
of property. The percentage shall be determined for each
-9-class of property by the director of revenue for the state in
accordance with the provisions of this section. For valuations
established as of January 1, 1979, the percentage shall be
the quotient of the dividend and divisor as defined in this
section. The dividend for each class of property shall be the
total actual valuation for each class of property established
for 1978, plus six percent of the amount so determined. The
divisor for each class of property shall be the valuation
for each class of property established for 1978, as reported
by the assessors on the abstracts of assessment for 1978,
plus the amount of value added to the total actual value by
the revaluation of existing properties in 1979 as equalized
by the director of revenue pursuant to section 441.49. For
valuations established as of January 1, 1979, property valued
by the department of revenue pursuant to chapters 428, 433,
437, and 438 shall be considered as one class of property and
shall be assessed as a percentage of its actual value. The
percentage shall be determined by the director of revenue in
accordance with the provisions of this section. For valuations
established as of January 1, 1979, the percentage shall be
the quotient of the dividend and divisor as defined in this
section. The dividend shall be the total actual valuation
established for 1978 by the department of revenue, plus ten
percent of the amount so determined. The divisor for property
valued by the department of revenue pursuant to chapters 428,
433, 437, and 438 shall be the valuation established for 1978,
plus the amount of value added to the total actual value by
the revaluation of the property by the department of revenue
as of January 1, 1979. For valuations established as of
January 1, 1980, commercial property and industrial property,
excluding properties referred to in section 427A.1, subsection
8, shall be assessed at a percentage of the actual value of
each class of property. The percentage shall be determined
for each class of property by the director of revenue for the
state in accordance with the provisions of this section. For
valuations established as of January 1, 1980, the percentage
shall be the quotient of the dividend and divisor as defined in
this section. The dividend for each class of property shall
be the dividend as determined for each class of property for
valuations established as of January 1, 1979, adjusted by the
product obtained by multiplying the percentage determined
for that year by the amount of any additions or deletions to
actual value, excluding those resulting from the revaluation
-10-of existing properties, as reported by the assessors on the
abstracts of assessment for 1979, plus four percent of the
amount so determined. The divisor for each class of property
shall be the total actual value of all such property in 1979,
as equalized by the director of revenue pursuant to section
441.49, plus the amount of value added to the total actual
value by the revaluation of existing properties in 1980. The
director shall utilize information reported on the abstracts of
assessment submitted pursuant to section 441.45 in determining
such percentage. For valuations established as of January 1,
1980, property valued by the department of revenue pursuant
to chapters 428, 433, 437, and 438 shall be assessed at a
percentage of its actual value. The percentage shall be
determined by the director of revenue in accordance with the
provisions of this section. For valuations established as of
January 1, 1980, the percentage shall be the quotient of the
dividend and divisor as defined in this section. The dividend
shall be the total actual valuation established for 1979 by
the department of revenue, plus eight percent of the amount so
determined. The divisor for property valued by the department
of revenue pursuant to chapters 428, 433, 437, and 438 shall be
the valuation established for 1979, plus the amount of value
added to the total actual value by the revaluation of the
property by the department of revenue as of January 1, 1980.
For valuations established as of January 1, 1981, and each
year thereafter, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which commercial property and industrial property, excluding
properties referred to in section 427A.1, subsection 8, shall
be assessed shall be calculated in accordance with the methods
provided herein, except that any references to six percent
in this subsection shall be four percent. For valuations
established as of January 1, 1981, and each year thereafter,
the percentage of actual value at which property valued by
the department of revenue pursuant to chapters 428, 433, 437,
and 438 shall be assessed shall be calculated in accordance
with the methods provided herein, except that any references
to ten percent in this subsection shall be eight percent.
Beginning with valuations established as of January 1, 1979,
and each year thereafter, property valued by the department of
revenue pursuant to chapter 434 shall also be assessed at a
percentage of its actual value which percentage shall be equal
to the percentage determined by the director of revenue for
-11-commercial property, industrial property, or property valued
by the department of revenue pursuant to chapters 428, 433,
437, and 438, whichever is lowest. For valuations established
on or after January 1, 2013, property valued by the department
of revenue pursuant to chapter 434 shall be assessed at a
percentage of its actual value equal to the percentage of
actual value at which property assessed as commercial property
is assessed under paragraph “b” for the same assessment year.
b. For valuations established on or after January 1, 2013,
commercial property, excluding properties referred to in
section 427A.1, subsection 8, shall be assessed at a percentage
of its actual value, as determined in this paragraph “b”.
For valuations established for the assessment year beginning
January 1, 2013, the percentage of actual value as equalized by
the director of revenue as provided in section 441.49 at which
commercial property shall be assessed shall be ninety-five
percent. For valuations established for the assessment year
beginning January 1, 2014, and each assessment year thereafter,
the percentage of actual value as equalized by the director
of revenue as provided in section 441.49 at which commercial
property shall be assessed shall be ninety percent.
c. For valuations established on or after January 1, 2013,
industrial property, excluding properties referred to in
section 427A.1, subsection 8, shall be assessed at a percentage
of its actual value, as determined in this paragraph “c”.
For valuations established for the assessment year beginning
January 1, 2013, the percentage of actual value as equalized by
the director of revenue as provided in section 441.49 at which
industrial property shall be assessed shall be ninety-five
percent. For valuations established for the assessment year
beginning January 1, 2014, and each assessment year thereafter,
the percentage of actual value as equalized by the director
of revenue as provided in section 441.49 at which industrial
property shall be assessed shall be ninety percent.
Sec. 19. Section 441.21, subsections 9 and 10, Code 2013,
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, property valued by
the department of revenue pursuant to chapter 434, and property
valued by the department of revenue pursuant to chapters 428,
-12-433, 434, 437, and 438 in each assessing jurisdiction in the
county shall be assessed for taxation. The county auditor
shall proceed to determine the assessed values of agricultural
property, residential property, commercial property, industrial
property, property valued by the department of revenue pursuant
to chapter 434, and property valued by the department of
revenue pursuant to chapters 428, 433, 434, 437, and 438 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 percentage of actual value computed by the
director for agricultural property, residential property,
commercial property, industrial property, property valued by
the department of revenue pursuant to chapter 434, and property
valued by the department of revenue pursuant to chapters 428,
433, 434, 437, and 438 and used to determine assessed values of
those classes of property does not constitute a rule as defined
in section 17A.2, subsection 11.
Sec. 20. NEW SECTION. 441.21A Commercial and industrial
property tax replacement —— replacement claims.
1. a. For each fiscal year beginning on or after July
1, 2014, there is appropriated from the general fund of the
state to the department of revenue an amount necessary for
the payment of all commercial and industrial property tax
replacement claims under this section for the fiscal year.
However, for a fiscal year beginning on or after July 1, 2017,
the total amount of moneys appropriated from the general fund
of the state to the department of revenue for the payment of
commercial and industrial property tax replacement claims in
that fiscal year shall not exceed the total amount of money
necessary to pay all commercial and industrial property tax
replacement claims for the fiscal year beginning July 1, 2016.
b. Moneys appropriated by the general assembly to the
department under this subsection for the payment of commercial
and industrial property tax replacement claims are not subject
to a uniform reduction in appropriations in accordance with
section 8.31.
2. Beginning with the fiscal year beginning July 1, 2014,
each county treasurer shall be paid by the department of
revenue an amount equal to the amount of the commercial and
industrial property tax replacement claims in the county, as
calculated in subsection 4. If an amount appropriated for a
-13-fiscal year is insufficient to pay all replacement claims, the
director of revenue shall prorate the payment of replacement
claims to the county treasurers and shall notify the county
auditors of the pro rata percentage on or before September 30.
3. On or before July 1 of each fiscal year beginning on or
after July 1, 2014, the assessor shall report to the county
auditor the total actual value of all commercial property and
industrial property in the county that is subject to assessment
and taxation for the assessment year used to calculate the
taxes due and payable in that fiscal year.
4. On or before a date established by rule of the department
of revenue of each fiscal year beginning on or after July 1,
2014, the county auditor shall prepare a statement, based upon
the report received pursuant to subsection 3, listing for each
taxing district in the county:
a. The difference between the assessed valuation of all
commercial property and industrial property for the assessment
year used to calculate taxes which are due and payable in the
applicable fiscal year and the actual value of all commercial
property and industrial property that is subject to assessment
and taxation for the same assessment year. If the difference
between the assessed value of all commercial property and
industrial property and the actual valuation of all commercial
property and industrial property is zero, there is no tax
replacement for that taxing district for the fiscal year.
b. The tax levy rate per one thousand dollars of assessed
value for each taxing district for that fiscal year.
c. The commercial and industrial property tax replacement
claim for each taxing district. The replacement claim is equal
to the amount determined pursuant to paragraph “a”, multiplied
by the tax rate specified in paragraph “b”, and then divided by
one thousand dollars.
5. For purposes of computing replacement amounts under
this section, that portion of an urban renewal area defined as
the sum of the assessed valuations defined in section 403.19,
subsections 1 and 2, shall be considered a taxing district.
6. a. The county auditor shall certify and forward one copy
of the statement to the department of revenue not later than
a date of each year established by the department of revenue
by rule.
b. The replacement claims shall be paid to each county
treasurer in equal installments in September and March of each
year. The county treasurer shall apportion the replacement
-14-claim payments among the eligible taxing districts in the
county.
c. If the taxing district is an urban renewal area, the
amount of the replacement claim shall be apportioned and
credited to those portions of the assessed value defined in
section 403.19, subsections 1 and 2, as follows:
(1) To that portion defined in section 403.19, subsection
1, an amount of the replacement claim that is proportionate to
the amount of actual value of the commercial and industrial
property in the urban renewal area as determined in section
403.19, subsection 1, that was subtracted pursuant to section
403.20, as it bears to the total amount of actual value of
the commercial and industrial property in the urban renewal
area that was subtracted pursuant to section 403.20 for the
assessment year for property taxes due and payable in the
fiscal year for which the replacement claim is computed.
(2) To that portion defined in section 403.19, subsection 2,
the remaining amount, if any.
d. Notwithstanding the allocation provisions of paragraph
“c”, the amount of the tax replacement amount that shall be
allocated to that portion of the assessed value defined in
section 403.19, subsection 2, shall not exceed the amount equal
to the amount certified to the county auditor under section
403.19 for the fiscal year in which the claim is paid, after
deduction of the amount of other revenues committed for payment
on that amount for the fiscal year. The amount not allocated
to that portion of the assessed value defined in section
403.19, subsection 2, as a result of the operation of this
paragraph, shall be allocated to that portion of assessed value
defined in section 403.19, subsection 1.
e. The amount of the replacement claim amount credited to
the portion of the assessed value defined in section 403.19,
subsection 1, shall be allocated to and when received be paid
into the fund for the respective taxing district as taxes by
or for the taxing district into which all other property taxes
are paid. The amount of the replacement claim amount credited
to the portion of the assessed value defined in section 403.19,
subsection 2, shall be allocated to and when collected be paid
into the special fund of the municipality under section 403.19,
subsection 2.
Sec. 21. SAVINGS PROVISION. This division of this Act,
pursuant to section 4.13, does not affect the operation of,
or prohibit the application of, prior provisions of section
-15-441.21, or rules adopted under chapter 17A to administer prior
provisions of section 441.21, for assessment years beginning
before January 1, 2013, and for duties, powers, protests,
appeals, proceedings, actions, or remedies attributable to an
assessment year beginning before January 1, 2013.
Sec. 22. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 23. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2013, for assessment
years beginning on or after that date.
DIVISION III
MULTIRESIDENTIAL PROPERTY CLASSIFICATION
Sec. 24. Section 404.2, subsection 2, paragraph f, Code
2013, is amended to read as follows:
f. A statement specifying whether the revitalization is
applicable to none, some, or all of the property assessed as
residential, multiresidential, agricultural, commercial, or
industrial property within the designated area or a combination
thereof and whether the revitalization is for rehabilitation
and additions to existing buildings or new construction or
both. If revitalization is made applicable only to some
property within an assessment classification, the definition of
that subset of eligible property must be by uniform criteria
which further some planning objective identified in the plan.
The city shall state how long it is estimated that the area
shall remain a designated revitalization area which time
shall be longer than one year from the date of designation
and shall state any plan by the city to issue revenue bonds
for revitalization projects within the area. For a county, a
revitalization area shall include only property which will be
used as industrial property, commercial property, commercial
property consisting of three or more separate living quarters
with at least seventy-five percent of the space used for
residential purposes, multiresidential property, or residential
property. However, a county shall not provide a tax exemption
under this chapter to commercial property, commercial property
consisting of three or more separate living quarters with at
least seventy-five percent of the space used for residential
purposes multiresidential property, or residential property
which is located within the limits of a city.
Sec. 25. Section 404.3, subsection 4, Code 2013, is amended
to read as follows:
-16- 4. a. All qualified real estate assessed as residential
property or assessed as commercial property, if the commercial
property consists of three or more separate living quarters
with at least seventy-five percent of the space used for
residential purposes, any of the following is eligible to
receive a one hundred percent exemption from taxation on the
actual value added by the improvements.:
(1) Residential property.
(2) Commercial property if the commercial property
consists of three or more separate living quarters with at
least seventy-five percent of the space used for residential
purposes.
(3) Multiresidential property if the multiresidential
property consists of three or more separate living quarters
with at least seventy-five percent of the space used for
residential purposes.
b. The exemption is for a period of ten years.
Sec. 26. Section 441.21, subsection 8, paragraph b, Code
2013, is amended to read as follows:
b. Notwithstanding paragraph “a”, any construction or
installation of a solar energy system on property classified
as agricultural, residential, commercial, multiresidential, or
industrial property shall not increase the actual, assessed,
and taxable values of the property for five full assessment
years.
Sec. 27. Section 441.21, subsections 9 and 10, Code 2013,
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, multiresidential property,
and property valued by the department of revenue pursuant
to chapters 428, 433, 434, 437, and 438 in each assessing
jurisdiction in the county shall be assessed for taxation. The
county auditor shall proceed to determine the assessed values
of agricultural property, residential property, commercial
property, industrial property, multiresidential property,
and property valued by the department of revenue pursuant
to chapters 428, 433, 434, 437, and 438 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
-17-such properties upon which the levy shall be made.
10. The percentage of actual value computed by the
director for agricultural property, residential property,
commercial property, industrial property, multiresidential
property, and property valued by the department of revenue
pursuant to chapters 428, 433, 434, 437, and 438 and used to
determine assessed values of those classes of property does not
constitute a rule as defined in section 17A.2, subsection 11.
Sec. 28. Section 441.21, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION. 13. a. Beginning with valuations
established on or after January 1, 2015, mobile home parks,
manufactured home communities, land-leased communities,
assisted living facilities, property primarily used or intended
for human habitation containing three or more separate dwelling
units, and that portion of a building that is used or intended
for human habitation and a proportionate share of the land
upon which the building is situated, regardless of the number
of dwelling units located in the building, if the use for
human habitation is not the primary use of the building and
such building is not otherwise classified as residential
property, shall be valued as a separate class of property
known as multiresidential property and, excluding properties
referred to in section 427A.1, subsection 8, shall be assessed
at a percentage of its actual value, as determined in this
subsection.
b. For valuations established for the assessment year
beginning January 1, 2015, the percentage of actual value as
equalized by the director of revenue as provided in section
441.49 at which multiresidential property shall be assessed
shall be the greater of eighty-six and twenty-five hundredths
percent or the percentage of actual value determined by the
director of revenue at which property assessed as residential
property is assessed for the same assessment year under
subsection 4. For valuations established for the assessment
year beginning January 1, 2016, the percentage of actual value
as equalized by the director of revenue as provided in section
441.49 at which multiresidential property shall be assessed
shall be the greater of eighty-two and five-tenths percent or
the percentage of actual value determined by the director of
revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
-18-January 1, 2017, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which multiresidential property shall be assessed shall be the
greater of seventy-eight and seventy-five hundredths percent
or the percentage of actual value determined by the director
of revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
January 1, 2018, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which multiresidential property shall be assessed shall be
the greater of seventy-five percent or the percentage of
actual value determined by the director of revenue at which
property assessed as residential property is assessed for
the same assessment year under subsection 4. For valuations
established for the assessment year beginning January 1,
2019, the percentage of actual value as equalized by the
director of revenue as provided in section 441.49 at which
multiresidential property shall be assessed shall be the
greater of seventy-one and twenty-five hundredths percent or
the percentage of actual value determined by the director of
revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
January 1, 2020, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which multiresidential property shall be assessed shall be
the greater of sixty-seven and five-tenths percent or the
percentage of actual value determined by the director of
revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
January 1, 2021, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which multiresidential property shall be assessed shall be the
greater of sixty-three and seventy-five hundredths percent or
the percentage of actual value determined by the director of
revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
January 1, 2022, and each assessment year thereafter, the
percentage of actual value as equalized by the director of
revenue as provided in section 441.49 at which multiresidential
-19-property shall be assessed shall be equal to the percentage of
actual value determined by the director of revenue at which
property assessed as residential property is assessed under
subsection 4 for the same assessment year.
c. Accordingly, for parcels that, in part, satisfy the
requirements for classification as multiresidential property,
the assessor shall assign to that portion of the parcel the
classification of multiresidential property and to such other
portions of the parcel the property classification for which
such other portions qualify.
d. In no case, however, shall property that is rented or
leased to low-income individuals and families as authorized by
section 42 of the Internal Revenue Code, and that is subject
to assessment procedures relating to section 42 property under
section 441.21, subsection 2, or a hotel, motel, inn, or other
building where rooms or dwelling units are usually rented for
less than one month be classified as multiresidential property
under this subsection.
e. As used in this subsection:
(1) “Assisted living facility” means property for providing
assisted living as defined in section 231C.2. “Assisted living
facility” also includes a health care facility, as defined in
section 135C.1, an elder group home, as defined in section
231B.1, a child foster care facility under chapter 237, or
property used for a hospice program as defined in section
135J.1.
(2) “Dwelling unit” means an apartment, group of rooms,
or single room which is occupied as separate living quarters
or, if vacant, is intended for occupancy as separate living
quarters, in which a tenant can live and sleep separately from
any other persons in the building.
(3) “Land-leased community” means the same as defined in
sections 335.30A and 414.28A.
(4) “Manufactured home community” means the same as a
land-leased community.
(5) “Mobile home park” means the same as defined in section
435.1.
Sec. 29. Section 558.46, subsection 5, Code 2013, is amended
to read as follows:
5. For the purposes of this section, “residential property”
includes commercial or multiresidential property consisting if
such commercial or multiresidential property consists of three
or more separate living quarters with at least seventy-five
-20-percent of the space used for residential purposes.
Sec. 30. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2015.
DIVISION IV
TELECOMMUNICATIONS COMPANY PROPERTY TAXATION
Sec. 31. Section 433.4, Code 2013, is amended to read as
follows:
433.4 Assessment and exemption.
1. The director of revenue shall on or before October 31
each year, proceed to find the actual value of the property of
these companies in this state that is used by the companies in
the transaction of telegraph and telephone business, taking
into consideration the information obtained from the statements
required, and any further information the director can obtain,
using the same as a means for determining the actual cash value
of the property of these companies within this state. The
director shall also take into consideration the valuation of
all property of these companies, including franchises and the
use of the property in connection with lines outside the state,
and making these deductions as may be necessary on account of
extra value of property outside the state as compared with
the value of property in the state, in order that the actual
cash value of the property of the company within this state
may be ascertained. The assessment shall include all property
of every kind and character whatsoever, real, personal, or
mixed, used by the companies in the transaction of telegraph
and telephone business; and the. The property so included in
the assessment shall not be taxed in any other manner than as
provided in this chapter.
2. a. For assessment years beginning on or after January
1, 2013, each company assessed for taxation under this chapter
shall receive a partial exemption from taxation on the value of
the company’s property as provided in this subsection.
b. For the assessment year beginning January 1, 2013, the
total amount of the exemption for each company shall be equal
to the sum of the following amounts:
(1) An amount equal to twenty percent of the actual value
of the property of such company for that assessment year, as
determined under subsection 1, that exceeds zero dollars but
does not exceed twenty million dollars.
(2) An amount equal to seventeen and five-tenths percent
of the actual value of the property of such company for that
assessment year, as determined under subsection 1, that exceeds
-21-twenty million dollars but does not exceed fifty-five million
dollars.
(3) An amount equal to twelve and five-tenths percent of
the actual value of the property of such company for that
assessment year, as determined under subsection 1, that exceeds
fifty-five million dollars but does not exceed five hundred
million dollars.
(4) An amount equal to ten percent of the actual value
of the property of such company for that assessment year,
as determined under subsection 1, that exceeds five hundred
million dollars.
c. For the assessment year beginning January 1, 2014,
and each assessment year thereafter, the total amount of the
exemption for each company shall be equal to the sum of the
following amounts:
(1) An amount equal to forty percent of the actual value
of the property of such company for that assessment year, as
determined under subsection 1, that exceeds zero dollars but
does not exceed twenty million dollars.
(2) An amount equal to thirty-five percent of the actual
value of the property of such company for that assessment year,
as determined under subsection 1, that exceeds twenty million
dollars but does not exceed fifty-five million dollars.
(3) An amount equal to twenty-five percent of the actual
value of the property of such company for that assessment year,
as determined under subsection 1, that exceeds fifty-five
million dollars but does not exceed five hundred million
dollars.
(4) An amount equal to twenty percent of the actual value
of the property of such company for that assessment year,
as determined under subsection 1, that exceeds five hundred
million dollars.
Sec. 32. Section 433.5, Code 2013, is amended to read as
follows:
433.5 Actual value per mile —— exemption value per mile.
1. The director of revenue shall ascertain the actual value
per mile of the property of each of said companies company
within this state by dividing the total actual value, as above
ascertained under section 433.4, subsection 1, by the number of
miles of line of such company within the state, and the result
shall be deemed and held to be the actual value per mile of line
of the property of such company within this state.
2. The director of revenue shall ascertain the exemption
-22-value per mile of the property of each company within this
state by dividing the amount of the exemption for that company
determined under section 433.4, subsection 2, by the number of
miles of line of such company within the state, and the result
shall be deemed and held to be the exemption value per mile of
line for that company.
Sec. 33. Section 433.8, Code 2013, is amended to read as
follows:
433.8 Assessment in each county —— how certified.
The director of revenue shall, for the purpose of
determining what amount shall be assessed to any one of said
companies each company in each county of the state into which
the line of the said company extends, multiply the assessed
or taxable value per mile of line of said company, as above
ascertained, by the number of miles in each of said counties,
and the result thereof shall be by the director certified
certify to the several county auditors of the respective
counties into, over, or through which said line extends
the number of miles of line in the county for that company,
the actual value per mile of line for that company, and the
exemption value per mile of line for that company.
Sec. 34. Section 433.9, Code 2013, is amended to read as
follows:
433.9 Entry of certificate.
At the first meeting of the board of supervisors held after
such statement the certification made under section 433.8 is
received by the county auditor, it the board shall cause such
statement certification to be entered in its minute book, and
make and enter therein an order stating the length of the
lines, and the assessed actual value of the property, and
the exempted value of the property of each of said companies
situated in each city, township, or lesser taxing district
in its county, as fixed by the director of revenue, which.
The value certified by the director of revenue, following
application of the percentage of actual value under section
441.21, and following the application of the exemption value
certified by the director of revenue, shall constitute the
taxable value of said property for taxing purposes, and the
taxes on said property when collected by the county treasurer
shall be disposed of as other taxes on real estate. The county
auditor shall transmit a copy of said order to the council or
trustees of each city or township in which the lines of said
company extend.
-23- Sec. 35. REPEAL. Section 433.6, Code 2013, is repealed.
Sec. 36. PROPERTY TAXATION OF TELECOMMUNICATIONS COMPANIES
STUDY —— REPORT.
1. a. The department of revenue, in consultation with
the department of management, representatives of companies
providing telecommunications services in this state by
any means, including but not limited to mobile, wireless,
voice over internet protocol, and landline, and other
interested persons shall study the current system of assessing
telecommunications company property and levying property tax
against companies that provide telecommunications services in
this state and make recommendations for changes.
b. The department of revenue shall prepare and file a report
detailing recommendations for changes to the current system
of assessing telecommunications company property and levying
property tax against companies providing telecommunications
services in this state. The report shall also include
recommendations for establishing methods to provide
equivalent property tax treatment for all companies providing
telecommunications services in this state and recommendations
for apportioning property tax revenues to the appropriate
local taxing authorities in the state. The report shall also
include proposed legislation to implement the recommendations
contained in the report. The report shall be filed by the
department of revenue with the chairpersons and ranking members
of the ways and means committees of the senate and the house
of representatives and with the legislative services agency by
August 1, 2015.
c. Upon receipt of the report by the chairpersons and
ranking members of the ways and means committees under
paragraph “b”, a legislative telecommunications company
property tax review committee consisting of six members of
the general assembly, two appointed by the majority leader
of the senate, one appointed by the minority leader of
the senate, two appointed by the speaker of the house of
representatives, and one appointed by the minority leader of
the house of representatives shall review the information and
recommendations contained in the report. The department of
revenue shall provide additional information and analysis to
the review committee or the general assembly upon request of
the review committee.
2. Each company providing telecommunications services in
this state by any means, including but not limited to mobile,
-24-wireless, voice over internet protocol, and landline, shall on
or before a date specified by the director of revenue submit to
the department of revenue such information determined by the
director of revenue to be necessary to facilitate the creation
of the report required under this section. However, the
director of revenue shall only request aggregate statistical
data or information from such companies and in no case shall
such companies be required under this section to provide data
or information about any individual end user or customer,
including but not limited to account information, place of
primary use, or service address information within the meaning
of section 423.20. In addition, such companies shall not be
required to resubmit any information that was submitted to the
director of revenue pursuant to the requirements of chapter
433. Information provided to the department under this section
shall be verified by the company’s president or secretary. The
confidentiality provisions of sections 422.20 and 422.72 apply
to all information received by the department of revenue for
purposes of the report pursuant to this section and pursuant
to chapter 433, if applicable.
Sec. 37. IMPLEMENTATION. Section 25B.7 shall not apply to
this division of this Act.
Sec. 38. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 39. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to assessment years beginning on or
after January 1, 2013.
DIVISION V
IOWA TAXPAYERS TRUST FUND TAX CREDIT
Sec. 40. TAXPAYERS TRUST FUND —— IOWA TAXPAYERS TRUST FUND
TAX CREDIT TRANSFER. During the fiscal year beginning July
1, 2013, there is transferred from the taxpayers trust fund
created in section 8.57E to the Iowa taxpayers trust fund tax
credit fund created in section 422.11E, an amount equal to the
sum of the balance of the taxpayers trust fund as determined
after the close of the fiscal year beginning July 1, 2012, and
ending June 30, 2013, including the amount transferred for that
fiscal year to the taxpayers trust fund from the Iowa economic
emergency fund created in section 8.55 in the fiscal year
beginning July 1, 2013, and ending June 30, 2014, to be used
for the Iowa taxpayers trust fund tax credit in accordance with
section 422.11E, subsection 5.
-25- Sec. 41. Section 8.57E, subsection 2, Code 2013, is amended
to read as follows:
2. Moneys in the taxpayers trust fund shall only be used
pursuant to appropriations or transfers made by the general
assembly for tax relief. During each fiscal year beginning on
or after July 1, 2014, in which the balance of the taxpayers
trust fund equals or exceeds thirty million dollars, there is
transferred from the taxpayers trust fund to the Iowa taxpayers
trust fund tax credit fund created in section 422.11E, the
entire balance of the taxpayers trust fund to be used for the
Iowa taxpayers trust fund tax credit in accordance with section
422.11E, subsection 5.
Sec. 42. Section 257.21, unnumbered paragraph 2, Code 2013,
is amended to read as follows:
The instructional support income surtax shall be imposed on
the state individual income tax for the calendar year during
which the school’s budget year begins, or for a taxpayer’s
fiscal year ending during the second half of that calendar year
and after the date the board adopts a resolution to participate
in the program or the first half of the succeeding calendar
year, and shall be imposed on all individuals residing in the
school district on the last day of the applicable tax year.
As used in this section, “state individual income tax” means
the taxes computed under section 422.5, less the amounts of
nonrefundable credits allowed under chapter 422, division II,
except for the Iowa taxpayers trust fund tax credit allowed
under section 422.11E.
Sec. 43. NEW SECTION. 422.11E Iowa taxpayers trust fund
tax credit.
1. For purposes of this section, unless the context
otherwise requires:
a. “Eligible individual” means, with respect to a tax year,
an individual who makes and files an individual income tax
return pursuant to section 422.13. “Eligible individual” does
not include an estate or trust, or an individual for whom an
individual income tax return was not timely filed, including
extensions.
b. “Unclaimed tax credit” means, with respect to a tax
year, the aggregate amount by which the Iowa taxpayers trust
fund tax credits that were eligible to be claimed by eligible
individuals, if any, exceeds the Iowa taxpayers trust fund tax
credits actually claimed by eligible individuals, if any.
2. The taxes imposed under this division, less the credits
-26-allowed under this division except the credits for withheld
tax and estimated tax paid in section 422.16, shall be reduced
by an Iowa taxpayers trust fund tax credit to an eligible
individual for the tax year beginning January 1 immediately
preceding July 1 of any fiscal year during which a transfer, if
any, is made from the taxpayers trust fund in section 8.57E to
the Iowa taxpayers trust fund tax credit fund created in this
section.
3. The credit shall be equal to the quotient of the amount
transferred to the Iowa taxpayers trust fund tax credit fund in
the applicable fiscal year, divided by the number of eligible
individuals for the tax year immediately preceding the tax year
for which the credit in this section is allowed, as determined
by the director of revenue in accordance with this section,
rounded down to the nearest whole dollar. The department of
revenue shall draft the income tax form for any tax year in
which a credit will be allowed under this section to provide
the information and space necessary for eligible individuals to
claim the credit.
4. Any credit in excess of the taxpayer’s liability for the
tax year is not refundable and shall not be credited to the tax
liability for any following year or carried back to a tax year
prior to the tax year in which the taxpayer claims the credit.
5. a. There is established within the state treasury under
the control of the department an Iowa taxpayers trust fund
tax credit fund consisting of any moneys transferred by the
general assembly by law from the taxpayers trust fund created
in section 8.57E for purposes of the credit provided in this
section. For the fiscal year beginning July 1, 2013, and for
each fiscal year thereafter, the department shall transfer
from the Iowa taxpayers trust fund tax credit fund to the
general fund of the state, the lesser of the balance of the
Iowa taxpayers trust fund tax credit fund or an amount of money
equal to the Iowa taxpayers trust fund tax credits claimed in
that fiscal year, if any. Any moneys in the Iowa taxpayers
trust fund tax credit fund which represent unclaimed tax
credits shall immediately revert to the taxpayers trust fund
created in section 8.57E. Interest or earnings on moneys in
the Iowa taxpayers trust fund tax credit fund shall be credited
to the taxpayers trust fund created in section 8.57E.
b. The moneys transferred to the general fund of the state
in accordance with this subsection shall not be considered new
revenues for purposes of the state general fund expenditure
-27-limitation under section 8.54 but instead as replacement of
a like amount included in the expenditure limitation for the
fiscal year in which the transfer is made.
Sec. 44. Section 422D.2, Code 2013, is amended to read as
follows:
422D.2 Local income surtax.
A county may impose by ordinance a local income surtax as
provided in section 422D.1 at the rate set by the board of
supervisors, of up to one percent, on the state individual
income tax of each individual residing in the county at the
end of the individual’s applicable tax year. However, the
cumulative total of the percents of income surtax imposed on
any taxpayer in the county shall not exceed twenty percent.
The reason for imposing the surtax and the amount needed
shall be set out in the ordinance. The surtax rate shall be
set to raise only the amount needed. For purposes of this
section, “state individual income tax” means the tax computed
under section 422.5, less the amounts of nonrefundable credits
allowed under chapter 422, division II, except for the Iowa
taxpayers trust fund tax credit allowed under section 422.11E.
Sec. 45. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 46. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2013, for tax years
beginning on or after that date.
DIVISION VI
property assessment appeal board
Sec. 47. Section 421.1A, subsection 2, paragraph b, Code
2013, is amended to read as follows:
b. Each member of the property assessment appeal board shall
be qualified by virtue of at least two years’ experience in the
area of government, corporate, or private practice relating
to property appraisal and property tax administration. One
member Two members of the board shall be a certified real
estate appraiser or hold a professional appraisal designation,
property appraisers and one member shall be an attorney
practicing in the area of state and local taxation or property
tax appraisals, and one member shall be a professional with
experience in the field of accounting or finance and with
experience in state and local taxation matters. No more than
two members of the board may be from the same political party
as that term is defined in section 43.2.
-28- Sec. 48. Section 421.1A, subsection 6, Code 2013, is amended
to read as follows:
6. The members of the property assessment appeal board
shall receive compensation from the state commensurate with the
salary of a district judge through December 31, 2013 a salary
set by the governor within a range established by the general
assembly. The members of the board shall be considered state
employees for purposes of salary and benefits. The members
of the board and any employees of the board, when required to
travel in the discharge of official duties, shall be paid their
actual and necessary expenses incurred in the performance of
duties.
Sec. 49. Section 421.1A, subsection 7, Code 2013, is amended
by striking the subsection.
Sec. 50. Section 441.21, subsection 3, Code 2013, is amended
to read as follows:
3. a. “Actual value”, “taxable value”, or “assessed
value” as used in other sections of the Code in relation to
assessment of property for taxation shall mean the valuations
as determined by this section; however, other provisions of
the Code providing special methods or formulas for assessing
or valuing specified property shall remain in effect, but this
section shall be applicable to the extent consistent with such
provisions. The assessor and department of revenue shall
disclose at the written request of the taxpayer all information
in any formula or method used to determine the actual value of
the taxpayer’s property.
b. The burden of proof shall be upon any complainant
attacking such valuation as excessive, inadequate, inequitable,
or capricious; however, in protest or appeal proceedings when
the complainant offers competent evidence by at least two
disinterested witnesses that the market value of the property
is less than the market value determined by the assessor, the
burden of proof thereafter shall be upon the officials or
persons seeking to uphold such valuation to be assessed.
Sec. 51. Section 441.23, Code 2013, is amended to read as
follows:
441.23 Notice of valuation.
If there has been an increase or decrease in the valuation
of the property, or upon the written request of the person
assessed, the assessor shall, at the time of making the
assessment, inform the person assessed, in writing, of the
valuation put upon the taxpayer’s property, and notify the
-29-person, that if the person feels aggrieved, to contact the
assessor pursuant to section 441.30 or to appear before the
board of review and show why the assessment should be changed.
However, if the valuation of a class of property is uniformly
decreased, the assessor may notify the affected property owners
by publication in the official newspapers of the county. The
owners of real property shall be notified not later than April
15 1 of any adjustment of the real property assessment.
Sec. 52. Section 441.26, subsection 1, Code 2013, is amended
to read as follows:
1. The director of revenue shall each year prescribe
the form of assessment roll to be used by all assessors in
assessing property, in this state, also the form of pages of
the assessor’s assessment book. The assessment rolls shall
be in a form that will permit entering, separately, the names
of all persons assessed, and shall also contain a notice in
substantially the following form:
If you are not satisfied that the foregoing assessment is
correct, you may contact the assessor on or after April 1, to
and including May 4, of the year of the assessment to request
an informal review of the assessment pursuant to section
441.30.
If you are not satisfied that the foregoing assessment is
correct, you may file a protest against such assessment with
the board of review on or after April 16 7, to and including May
5, of the year of the assessment, such protest to be confined
to the grounds specified in section 441.37.
Dated: .. day of ... (month), .. (year)
...........
County/City Assessor.
Sec. 53. Section 441.28, Code 2013, is amended to read as
follows:
441.28 Assessment rolls —— change —— notice to taxpayer.
The assessment shall be completed not later than April 15 1
each year. If the assessor makes any change in an assessment
after it has been entered on the assessor’s rolls, the assessor
shall note on the roll, together with the original assessment,
the new assessment and the reason for the change, together with
the assessor’s signature and the date of the change. Provided,
however, in the event the assessor increases any assessment
the assessor shall give notice of the increase in writing to
the taxpayer by mail postmarked no later than April 15 1. No
changes shall be made on the assessment rolls after April 15
-30- 1 except by order of the board of review or of the property
assessment appeal board, or by decree of court.
Sec. 54. NEW SECTION. 441.30 Informal assessment review
period —— recommendation.
1. Any property owner or aggrieved taxpayer who is
dissatisfied with the owner’s or taxpayer’s assessment may
contact the assessor by telephone or in writing by paper or
electronic medium on or after April 1, to and including May 4,
of the year of the assessment to inquire about the specifics
and accuracy of the assessment. Such an inquiry may also
include a request for an informal review of the assessment
by the assessor under one or more of the grounds for protest
authorized under section 441.37 for the same assessment year.
2. In response to an inquiry under subsection 1, if the
assessor, following an informal review, determines that the
assessment was incorrect under one or more of the grounds for
protest authorized under section 441.37 for the same assessment
year, the assessor may recommend that the property owner or
aggrieved taxpayer file a protest with the local board of
review and may file a recommendation with the local board of
review related to the informal review.
3. A recommendation filed with the local board of review
by the assessor pursuant to subsection 2 shall be utilized by
the local board of review in the evaluation of all evidence
properly before the local board of review.
4. This section, including any action taken by the assessor
under this section, shall not be construed to limit a property
owner or taxpayer’s ability to file a protest with the local
board of review under section 441.37.
Sec. 55. Section 441.35, subsection 2, Code 2013, is amended
to read as follows:
2. In any year after the year in which an assessment has
been made of all of the real estate in any taxing district, the
board of review shall meet as provided in section 441.33, and
where the board finds the same has changed in value, the board
shall revalue and reassess any part or all of the real estate
contained in such taxing district, and in such case, the board
shall determine the actual value as of January 1 of the year of
the revaluation and reassessment and compute the taxable value
thereof. Any aggrieved taxpayer may petition for a revaluation
of the taxpayer’s property, but no reduction or increase
shall be made for prior years. If the assessment of any such
property is raised, or any property is added to the tax list by
-31-the board, the clerk shall give notice in the manner provided
in section 441.36. However, if the assessment of all property
in any taxing district is raised, the board may instruct the
clerk to give immediate notice by one publication in one of
the official newspapers located in the taxing district, and
such published notice shall take the place of the mailed notice
provided for in section 441.36, but all other provisions of
that section shall apply. The decision of the board as to the
foregoing matters shall be subject to appeal to the property
assessment appeal board within the same time and in the same
manner as provided in section 441.37A and to the district court
within the same time and in the same manner as provided in
section 441.38.
Sec. 56. Section 441.37, subsection 1, paragraphs a and b,
Code 2013, are amended to read as follows:
a. Any property owner or aggrieved taxpayer who is
dissatisfied with the owner’s or taxpayer’s assessment may file
a protest against such assessment with the board of review on
or after April 16 7, to and including May 5, of the year of
the assessment. In any county which has been declared to be a
disaster area by proper federal authorities after March 1 and
prior to May 20 of said year of assessment, the board of review
shall be authorized to remain in session until June 15 and the
time for filing a protest shall be extended to and include the
period from May 25 to June 5 of such year. Said The protest
shall be in writing and, except as provided in subsection
2A, signed by the one protesting or by the protester’s duly
authorized agent. The taxpayer may have an oral hearing
thereon on the protest if the request therefor for the oral
hearing is made in writing is made at the time of filing the
protest. Said The protest must be confined to one or more of
the following grounds:
(1) For odd-numbered assessment years and for even-numbered
assessment years for property that was reassessed in such
even-numbered assessment year:
(a) That said assessment is not equitable as compared with
assessments of other like property in the taxing district.
When this ground is relied upon as the basis of a protest the
legal description and assessments of a representative number of
comparable properties, as described by the aggrieved taxpayer
shall be listed on the protest, otherwise said protest shall
not be considered on this ground.
(2) (b) That the property is assessed for more than
-32-the value authorized by law, stating. When this ground is
relied upon, the protesting party shall state the specific
amount which the protesting party believes the property to be
overassessed, and the amount which the party considers to be
its actual value and the amount the party considers a fair
assessment.
(3) (c) That the property is not assessable, is exempt
from taxes, or is misclassified and stating the reasons for the
protest.
(4) (d) That there is an error in the assessment and state
the specific alleged error. When this ground is relied upon,
the error may include but is not limited to listing errors,
clerical or mathematical errors, or other errors that result
in an error in the assessment.
(5) (e) That there is fraud in the assessment which shall
be specifically stated.
(2) For even-numbered assessment years, when the property
has not been reassessed in such even-numbered assessment year,
that there has been a decrease in the value of the property
from the previous reassessment year. When this ground is
relied upon, the protesting party shall show the decrease
in value by comparing the market value of the property as
of January 1 of the current assessment year and the actual
value of the property for the previous reassessment year.
Such protest shall be in the same manner as described in this
section and shall be reviewed by the local board of review
pursuant to section 441.35, subsection 2, but a reduction or
increase shall not be made for prior years.
b. In addition to the above, the property owner may protest
annually to the board of review under the provisions of section
441.35, but such protest shall be in the same manner and upon
the same terms as heretofore prescribed in this section. The
burden of proof for all protests filed under this section shall
be as stated in section 441.21, subsection 3.
Sec. 57. Section 441.37, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION. 2A. For assessment years beginning on or
after January 1, 2014, the board of review may allow property
owners or aggrieved taxpayers who are dissatisfied with the
owner’s or taxpayer’s assessment to file a protest against
such assessment by electronic means. Electronic filing of
assessment protests may be authorized for the protest period
that begins April 7, the protest period that begins October 15,
-33-or both. Except for the requirement that a protest be signed,
all other requirements of this section for an assessment
protest to the board of review shall apply to a protest filed
electronically. If electronic filing is authorized by the
local board of review, the availability of electronic filing
shall be clearly indicated on the assessment roll notice
provided to the property owner or taxpayer and included in the
published equalization order notice.
Sec. 58. Section 441.37A, subsection 1, paragraphs a and b,
Code 2013, are amended to read as follows:
a. For the assessment year beginning January 1, 2007, and
all subsequent assessment years beginning before January 1,
2018, appeals may be taken from the action of the board of
review with reference to protests of assessment, valuation, or
application of an equalization order to the property assessment
appeal board created in section 421.1A. However, a property
owner or aggrieved taxpayer or an appellant described in
section 441.42 may bypass the property assessment appeal board
and appeal the decision of the local board of review to the
district court pursuant to section 441.38.
b. For an appeal to the property assessment appeal board to
be valid, written notice must be filed by the party appealing
the decision with the secretary of the property assessment
appeal board within twenty days after the date the board of
review’s letter of disposition of the appeal is postmarked to
the party making the protest of adjournment of the local board
of review or May 31, whichever is later. The written notice
of appeal shall include a petition setting forth the basis of
the appeal and the relief sought. No new grounds in addition
to those set out in the protest to the local board of review
as provided in section 441.37 can be pleaded, but additional
evidence to sustain those grounds may be introduced. The
assessor shall have the same right to appeal to the assessment
appeal board as an individual taxpayer, public body, or other
public officer as provided in section 441.42. An appeal to the
board is a contested case under chapter 17A.
Sec. 59. Section 441.37A, subsection 1, Code 2013, is
amended by adding the following new paragraph:
NEW PARAGRAPH. e. For the assessment year beginning January
1, 2014, the property assessment appeal board may, by rule,
provide for the filing of a notice of appeal and petition
with the secretary of the board by electronic means. All
requirements of this section for an appeal to the board shall
-34-apply to an appeal filed electronically.
Sec. 60. Section 441.37A, subsection 2, Code 2013, is
amended to read as follows:
2. a. A party to the appeal may request a hearing or
the appeal may proceed without a hearing. If a hearing is
requested, the appellant and the local board of review from
which the appeal is taken shall be given at least thirty days’
written notice by the property assessment appeal board of the
date the appeal shall be heard and the local board of review
may be present and participate at such hearing. Notice to all
affected taxing districts shall be deemed to have been given
when written notice is provided to the local board of review.
The requirement of thirty days’ written notice may be waived
by mutual agreement of all parties to the appeal. Failure by
the appellant to appear at the property assessment appeal board
hearing shall be grounds for result in dismissal of the appeal
unless a continuance is granted to the appellant by the board
following a showing of good cause for the appellant’s failure
to appear. If an appeal is dismissed for failure to appear,
the property assessment appeal board shall have no jurisdiction
to consider any subsequent appeal on the appellant’s protest.
b. An Each appeal may be considered by less than a majority
of the one or more members of the board, and the chairperson
of the board may assign members to consider appeals. If a
hearing is requested, it shall be open to the public and shall
be conducted in accordance with the rules of practice and
procedure adopted by the board. The board may provide by rule
for participation in such hearings by telephone or other means
of electronic communication. However, any deliberation of a
the board or of board member members considering the appeal in
reaching a decision on any appeal shall be confidential. A
meeting of the board Any deliberation of the board or of board
members to rule on procedural motions in a pending appeal or to
deliberate on the decision to be reached in an appeal is exempt
from the provisions of chapter 21. The property assessment
appeal board or any member of the board considering the appeal
may require the production of any books, records, papers, or
documents as evidence in any matter pending before the board
that may be material, relevant, or necessary for the making
of a just decision. Any books, records, papers, or documents
produced as evidence shall become part of the record of the
appeal. Any testimony given relating to the appeal shall be
transcribed and made a part of the record of the appeal.
-35- Sec. 61. Section 441.37A, subsection 3, paragraph a, Code
2013, is amended to read as follows:
a. The burden of proof for all appeals before the board
shall be as stated in section 441.21, subsection 3.The board
member members considering the appeal shall determine anew
all questions arising before the local board of review which
relate to the liability of the property to assessment or the
amount thereof. All of the evidence shall be considered and
there shall be no presumption as to the correctness of the
valuation of assessment appealed from. The property assessment
appeal board shall make issue a decision in each appeal filed
with the board. If the appeal is considered by less than a
majority the full membership of the board, the determination
made by that member such members shall be forwarded to the full
board for approval, rejection, or modification. If the initial
determination is rejected by the board, it shall be returned
for reconsideration to the board member members making the
initial determination. Any deliberation of the board regarding
an initial determination shall be confidential.
Sec. 62. 2005 Iowa Acts, chapter 150, section 134, is
amended to read as follows:
SEC. 134. FUTURE REPEAL.
1. The sections of this division of this Act amending
sections 7E.6, 13.7, 428.4, 441.19, 441.35, 441.38, 441.39,
441.43, 441.49, and 445.60, and enacting sections 421.1A and
441.37A, are repealed effective July 1, 2013 2018.
2. The portion of the section of this division of this
Act amending section 441.28 relating only to the property
assessment appeal board is repealed effective July 1, 2013
2018.
3. The repeals provided for in subsections 1 and 2 shall
include all subsequent amendments to such sections relating to
the property assessment appeal board.
Sec. 63. 2008 Iowa Acts, chapter 1191, section 14,
subsection 5, is amended to read as follows:
5. The following are range 5 positions: administrator of
the division of homeland security and emergency management of
the department of public defense, state public defender, drug
policy coordinator, labor commissioner, workers’ compensation
commissioner, director of the department of cultural affairs,
director of the department of elder affairs, director of the
law enforcement academy, members of the property assessment
appeal board, and administrator of the historical division of
-36-the department of cultural affairs.
Sec. 64. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 65. APPLICABILITY. Except as otherwise provided in
this division of this Act, this division of this Act applies to
assessment years beginning on or after January 1, 2014.
Sec. 66. APPLICABILITY. The following provision of this
division of this Act applies to appointments to the property
assessment appeal board on or after the effective date of this
division of this Act:
1. The section of this division of this Act amending section
421.1A, subsection 2, paragraph “b”.
Sec. 67. APPLICABILITY. The following provisions of this
division of this Act apply to fiscal years beginning on or
after July 1, 2013:
1. The section of this division of this Act amending section
421.1A, subsection 6.
2. The section of this division of this Act amending 2008
Iowa Acts, chapter 1191, section 14, subsection 5.
Sec. 68. APPLICABILITY. The following provision of this
division of this Act applies on or after the effective date of
this division of this Act:
1. The section of this division of this Act amending 2005
Iowa Acts, chapter 150, section 134.
Sec. 69. RETROACTIVE APPLICABILITY. The following
provision of this division of this Act applies retroactively
to January 1, 2013, for assessment years beginning on or after
that date:
1. The section of this division of this Act amending section
441.37A, subsection 2.
DIVISION VII
earned income tax credit
Sec. 70. Section 422.12B, subsection 1, Code 2013, is
amended to read as follows:
1. a. The taxes imposed under this division less the
credits allowed under section 422.12 shall be reduced by an
earned income credit equal to seven percent the following
percentage of the federal earned income credit provided in
section 32 of the Internal Revenue Code.:
(1) For the tax year beginning in the 2013 calendar year,
fourteen percent.
(2) For tax years beginning on or after January 1, 2014,
-37-fifteen percent.
b. Any credit in excess of the tax liability is refundable.
Sec. 71. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2013, for tax years
beginning on or after that date.
______________________________
PAM JOCHUM
President of the Senate
______________________________
KRAIG PAULSEN
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 295, Eighty-fifth General Assembly.
______________________________
MICHAEL E. MARSHALL
Secretary of the Senate
Approved _______________, 2013
______________________________
TERRY E. BRANSTAD
Governor
-38-
property tax credit for commercial, industrial, and railway
property, establishing and modifying property assessment
limitations, providing for commercial and industrial
property tax replacement payments, providing for the
classification of multiresidential property, modifying
provisions for the taxation of telecommunications company
property, providing for the study of the taxation of
telecommunications company property, providing a taxpayers
trust fund tax credit, modifying provisions relating to
the property assessment appeal board, modifying the amount
of the earned income tax credit, making appropriations,
providing penalties, and including effective date,
implementation, retroactive applicability, and other
applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
BUSINESS PROPERTY TAX CREDIT
Section 1. Section 331.512, Code 2013, is amended by adding
the following new subsection:
NEW SUBSECTION. 4A. Carry out duties relating to the
business property tax credit as provided in chapter 426C.
Sec. 2. Section 331.559, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION. 14A. Carry out duties relating to the
business property tax credit as provided in chapter 426C.
Sec. 3. NEW SECTION. 426C.1 Definitions.
For the purposes of this chapter, unless the context
otherwise requires:
-1- 1. “Contiguous parcels” means any of the following:
a. Parcels that share a common boundary.
b. Parcels within the same building or structure regardless
of whether the parcels share a common boundary.
c. Permanent improvements to the land that are situated
on one or more parcels of land that are assessed and taxed
separately from the permanent improvements if the parcels of
land upon which the permanent improvements are situated share
a common boundary.
2. “Department” means the department of revenue.
3. “Fund” means the business property tax credit fund
created in section 426C.2.
4. “Parcel” means as defined in section 445.1 and, for
purposes of business property tax credits claimed for fiscal
years beginning on or after January 1, 2016, “parcel” also means
that portion of a parcel assigned to be commercial property,
industrial property, or railway property under chapter 434
pursuant to section 441.21, subsection 13, paragraph “c”.
5. “Property unit” means contiguous parcels all of which
are located within the same county, with the same property tax
classification, are owned by the same person, and are operated
by that person for a common use and purpose.
Sec. 4. NEW SECTION. 426C.2 Business property tax credit
fund —— appropriation.
1. A business property tax credit fund is created in the
state treasury under the authority of the department. For the
fiscal year beginning July 1, 2014, there is appropriated from
the general fund of the state to the department to be credited
to the fund, the sum of fifty million dollars to be used for
business property tax credits authorized in this chapter. For
the fiscal year beginning July 1, 2015, there is appropriated
from the general fund of the state to the department to be
credited to the fund, the sum of one hundred million dollars to
be used for business property tax credits authorized in this
chapter. For the fiscal year beginning July 1, 2016, and each
fiscal year thereafter, there is appropriated from the general
fund of the state to the department to be credited to the fund,
the sum of one hundred twenty-five million dollars to be used
for business property tax credits authorized in this chapter.
2. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys deposited in the fund shall be credited to
the fund. Moneys in the fund are not subject to the provisions
of section 8.33 and shall not be transferred, used, obligated,
-1-appropriated, or otherwise encumbered except as provided in
this chapter.
Sec. 5. NEW SECTION. 426C.3 Claims for credit.
1. Each person who wishes to claim the credit allowed
under this chapter shall obtain the appropriate forms from the
assessor and file the claim with the assessor. The director
of revenue shall prescribe suitable forms and instructions for
such claims, and make such forms and instructions available to
the assessors.
2. a. Claims for the business property tax credit shall be
filed not later than March 15 preceding the fiscal year during
which the taxes for which the credit is claimed are due and
payable.
b. A claim for credit filed after the deadline for filing
claims shall be considered as a claim for the following year.
3. Upon the filing of a claim and allowance of the credit,
the credit shall be allowed on the parcel or property unit for
successive years without further filing as long as the parcel
or property unit satisfies the requirements for the credit. If
the parcel or property unit ceases to qualify for the credit
under this chapter, the owner shall provide written notice
to the assessor by the date for filing claims specified in
subsection 2 following the date on which the parcel or property
unit ceases to qualify for the credit.
4. The assessor shall remit the claims for credit to the
county auditor with the assessor’s recommendation for allowance
or disallowance. If the assessor recommends disallowance
of a claim, the assessor shall submit the reasons for the
recommendation, in writing, to the county auditor. The county
auditor shall forward the claims and recommendations to the
board of supervisors. The board shall allow or disallow the
claims.
5. For each claim and allowance of a credit for a property
unit, the county auditor shall calculate the average of all
consolidated levy rates applicable to the several parcels
within the property unit. All claims for credit which have
been allowed by the board of supervisors, the actual value of
such parcels and property units applicable to the fiscal year
for which the credit is claimed that are subject to assessment
and taxation prior to imposition of any applicable assessment
limitation, the consolidated levy rates for such parcels and
the average consolidated levy rates for such property units
applicable to the fiscal year for which the credit is claimed,
-2-and the taxing districts in which the parcel or property unit
is located, shall be certified on or before June 30, in each
year, by the county auditor to the department.
6. The assessor shall maintain a permanent file of current
business property tax credits. The assessor shall file a
notice of transfer of property for which a credit has been
allowed when notice is received from the office of the county
recorder, from the person who sold or transferred the property,
or from the personal representative of a deceased property
owner. The county recorder shall give notice to the assessor
of each transfer of title filed in the recorder’s office. The
notice from the county recorder shall describe the property
transferred, the name of the person transferring title to the
property, and the name of the person to whom title to the
property has been transferred.
7. When all or a portion of a parcel or property unit that
is allowed a credit under this chapter is sold, transferred,
or ownership otherwise changes, the buyer, transferee, or
new owner who wishes to receive the credit shall refile the
claim for credit. In addition, when a portion of a parcel or
property unit that is allowed a credit under this chapter is
sold, transferred, or ownership otherwise changes, the owner of
the portion of the parcel or property unit for which ownership
did not change shall refile the claim for credit.
Sec. 6. NEW SECTION. 426C.4 Eligibility and amount of
credit.
1. a. Except as provided in paragraph “b”, parcels
classified and taxed as commercial property, industrial
property, or railway property under chapter 434 are eligible
for a credit under this chapter. A person may claim and
receive one credit under this chapter for each eligible parcel
unless the parcel is part of a property unit for which a credit
is claimed. A person may claim and receive one credit under
this chapter for each property unit. A credit approved for
a property unit shall be allocated to the several parcels
within the property unit in the proportion that each parcel’s
total amount of property taxes due and payable bears to the
total amount of property taxes due and payable on the property
unit. Only property units comprised of property assessed as
commercial property, industrial property, or railway property
under chapter 434 are eligible for a credit under this chapter.
The classification of property used to determine eligibility
for the credit under this chapter shall be the classification
-3-of the property for the assessment year used to calculate the
taxes due and payable in the fiscal year for which the credit
is claimed.
b. All of the following shall not be eligible to receive a
credit under this chapter or be part of a property unit that
receives a credit under this chapter:
(1) Property that is rented or leased to low-income
individuals and families as authorized by section 42 of the
Internal Revenue Code, as amended, and that is subject to
assessment procedures relating to section 42 property under
section 441.21, subsection 2, for the applicable assessment
year.
(2) For credits claimed for the fiscal year beginning July
1, 2014, and the fiscal year beginning July 1, 2015, property
that is a mobile home park, manufactured home community,
land-leased community, assisted living facility, as those terms
are defined in section 441.21, subsection 13, as enacted in
division III of this Act, or that is property primarily used or
intended for human habitation containing three or more separate
dwelling units.
2. Using the actual value of each parcel or property unit
and the consolidated levy rate for each parcel or the average
consolidated levy rate for each property unit, as certified
by the county auditor to the department under section 426C.3,
subsection 5, the department shall calculate, for each fiscal
year, an initial amount of actual value for use in determining
the amount of the credit for each such parcel or property
unit so as to provide the maximum possible credit according
to the credit formula and limitations under subsection 3,
and to provide a total dollar amount of credits against the
taxes due and payable in the fiscal year equal to ninety-eight
percent of the moneys in the fund following the deposit of the
appropriation for the fiscal year and including interest or
earnings credited to the fund.
3. a. The amount of the credit for each parcel or property
unit for which a claim for credit under this chapter has been
approved shall be calculated under paragraph “b” using the
lesser of the initial amount of actual value determined by the
department under subsection 2, and the amount of actual value
of the parcel or property unit certified by the county auditor
under section 426C.3, subsection 5.
b. The amount of the credit for each parcel or property
unit for which a claim for credit under this chapter has been
-4-approved shall be equal to the product of the amount of actual
value determined under paragraph “a” times the difference,
stated as a percentage, between the assessment limitation
percentage applicable to the parcel or property unit under
section 441.21, subsection 5, and the assessment limitation
percentage applicable to residential property under section
441.21, subsection 4, divided by one thousand dollars, and
then multiplied by the consolidated levy rate or average
consolidated levy rate per one thousand dollars of taxable
value applicable to the parcel or property unit for the fiscal
year for which the credit is claimed as certified by the county
auditor under section 426C.3, subsection 5.
Sec. 7. NEW SECTION. 426C.5 Payment to counties.
1. Annually the department shall certify to the county
auditor of each county the amounts of the business property
tax credits allowed in the county. Each county auditor shall
then enter the credits against the tax levied on each eligible
parcel or property unit in the county, designating on the tax
lists the credit as being paid from the fund. Each taxing
district shall receive its share of the business property tax
credit allowed on each eligible parcel or property unit in
such taxing district in the proportion that the levy made by
such taxing district upon the parcel or property unit bears
to the total levy upon the parcel or property unit by all
taxing districts. However, the several taxing districts shall
not draw the moneys so credited until after the semiannual
allocations have been received by the county treasurer, as
provided in this section. Each county treasurer shall show on
each taxpayer receipt the amount of credit received from the
fund.
2. The director of revenue shall authorize the department of
administrative services to draw warrants on the fund payable to
the county treasurers of the several counties of the state in
the amounts certified by the department.
3. The amount due each county shall be paid in two payments
on November 15 and March 15 of each fiscal year, drawn upon
warrants payable to the respective county treasurers. The two
payments shall be as nearly equal as possible.
Sec. 8. NEW SECTION. 426C.6 Appeals.
1. If the board of supervisors disallows a claim for credit
under section 426C.3, subsection 4, the board of supervisors
shall send written notice, by mail, to the claimant at the
claimant’s last known address. The notice shall state the
-5-reasons for disallowing the claim for the credit. The board
of supervisors is not required to send notice that a claim for
credit is disallowed if the claimant voluntarily withdraws
the claim. Any person whose claim is disallowed under the
provisions of this chapter may appeal from the action of the
board of supervisors to the district court of the county in
which the parcel or property unit is located by giving written
notice of such appeal to the county auditor within twenty days
from the date of mailing of notice of such action by the board
of supervisors.
2. If a claim for credit is disallowed by the board of
supervisors, and such action is subsequently reversed on
appeal, the credit shall be allowed on the applicable parcel or
property unit, and the director of revenue, the county auditor,
and the county treasurer shall provide the credit and change
their books and records accordingly. In the event the claimant
has paid one or both of the installments of the tax payable
in the year or years in question, remittance shall be made to
the claimant of the amount of such credit. The amount of such
credit awarded on appeal shall be allocated and paid from the
balance remaining in the fund.
Sec. 9. NEW SECTION. 426C.7 Audit —— recalculation or
denial.
1. If on the audit of a credit provided under this chapter,
the director of revenue determines the amount of the credit
to have been incorrectly calculated or that the credit is
not allowable, the director shall recalculate the credit and
notify the claimant and the county auditor of the recalculation
or denial and the reasons for it. The director shall not
adjust a credit after three years from October 31 of the year
in which the claim for the credit was filed. If the credit
has been paid, the director shall give notification to the
claimant, the county treasurer, and the applicable assessor
of the recalculation or denial of the credit and the county
treasurer shall proceed to collect the tax owed in the same
manner as other property taxes due and payable are collected,
if the parcel or property unit for which the credit was allowed
is still owned by the claimant. If the parcel or property unit
for which the credit was allowed is not owned by the claimant,
the amount may be recovered from the claimant by assessment in
the same manner that income taxes are assessed under sections
422.26 and 422.30. The amount of such erroneous credit, when
collected, shall be deposited in the fund.
-6- 2. The claimant or board of supervisors may appeal any
decision of the director of revenue to the state board of tax
review pursuant to section 421.1, subsection 5. The claimant,
the board of supervisors, or the director of revenue may seek
judicial review of the action of the state board of tax review
in accordance with chapter 17A.
Sec. 10. NEW SECTION. 426C.8 False claim —— penalty.
A person who makes a false claim for the purpose of obtaining
a credit provided for in this chapter or who knowingly receives
the credit without being legally entitled to it is guilty of a
fraudulent practice. The claim for a credit of such a person
shall be disallowed and if the credit has been paid the amount
shall be recovered in the manner provided in section 426C.7.
In such cases, the director of revenue shall send a notice of
disallowance of the credit.
Sec. 11. NEW SECTION. 426C.9 Rules.
The director of revenue shall prescribe forms, instructions,
and rules as necessary, pursuant to chapter 17A, to carry out
and effectuate the purposes of this chapter.
Sec. 12. IMPLEMENTATION. Notwithstanding the deadline
for filing claims established in section 426C.3, for a credit
against property taxes due and payable during the fiscal year
beginning July 1, 2014, the claim for the credit shall be filed
not later than January 15, 2014.
Sec. 13. APPLICABILITY. This division of this Act applies
to property taxes due and payable in fiscal years beginning on
or after July 1, 2014.
DIVISION II
PROPERTY ASSESSMENT LIMITATION AND REPLACEMENT
Sec. 14. Section 257.3, subsection 1, Code 2013, is amended
by adding the following new paragraph:
NEW PARAGRAPH. d. The amount paid to each school district
for the commercial and industrial property tax replacement
claim under section 441.21A shall be regarded as property tax.
The portion of the payment which is foundation property tax
shall be determined by applying the foundation property tax
rate to the amount computed under section 441.21A, subsection
4, paragraph “a”, and such amount shall be prorated pursuant to
section 441.21A, subsection 2, if applicable.
Sec. 15. Section 331.512, Code 2013, is amended by adding
the following new subsection:
NEW SUBSECTION. 13A. Carry out duties relating to the
calculation and payment of commercial and industrial property
-7-tax replacement claims under section 441.21A.
Sec. 16. Section 331.559, Code 2013, is amended by adding
the following new subsection:
NEW SUBSECTION. 25A. Carry out duties relating to the
calculation and payment of commercial and industrial property
tax replacement claims under section 441.21A.
Sec. 17. Section 441.21, subsection 4, Code 2013, is amended
to read as follows:
4. For valuations established as of January 1, 1979,
the percentage of actual value at which agricultural and
residential property shall be assessed shall be the quotient
of the dividend and divisor as defined in this section. The
dividend for each class of property shall be the dividend
as determined for each class of property for valuations
established as of January 1, 1978, adjusted by the product
obtained by multiplying the percentage determined for that
year by the amount of any additions or deletions to actual
value, excluding those resulting from the revaluation of
existing properties, as reported by the assessors on the
abstracts of assessment for 1978, plus six percent of the
amount so determined. However, if the difference between the
dividend so determined for either class of property and the
dividend for that class of property for valuations established
as of January 1, 1978, adjusted by the product obtained by
multiplying the percentage determined for that year by the
amount of any additions or deletions to actual value, excluding
those resulting from the revaluation of existing properties,
as reported by the assessors on the abstracts of assessment
for 1978, is less than six percent, the 1979 dividend for the
other class of property shall be the dividend as determined for
that class of property for valuations established as of January
1, 1978, adjusted by the product obtained by multiplying
the percentage determined for that year by the amount of
any additions or deletions to actual value, excluding those
resulting from the revaluation of existing properties, as
reported by the assessors on the abstracts of assessment for
1978, plus a percentage of the amount so determined which is
equal to the percentage by which the dividend as determined
for the other class of property for valuations established
as of January 1, 1978, adjusted by the product obtained by
multiplying the percentage determined for that year by the
amount of any additions or deletions to actual value, excluding
those resulting from the revaluation of existing properties,
-8-as reported by the assessors on the abstracts of assessment
for 1978, is increased in arriving at the 1979 dividend for
the other class of property. The divisor for each class of
property shall be the total actual value of all such property
in the state in the preceding year, as reported by the
assessors on the abstracts of assessment submitted for 1978,
plus the amount of value added to said total actual value by
the revaluation of existing properties in 1979 as equalized
by the director of revenue pursuant to section 441.49. The
director shall utilize information reported on abstracts of
assessment submitted pursuant to section 441.45 in determining
such percentage. For valuations established as of January 1,
1980, and each assessment year thereafter beginning before
January 1, 2013, the percentage of actual value as equalized by
the director of revenue as provided in section 441.49 at which
agricultural and residential property shall be assessed shall
be calculated in accordance with the methods provided herein
in this subsection, including the limitation of increases in
agricultural and residential assessed values to the percentage
increase of the other class of property if the other class
increases less than the allowable limit adjusted to include
the applicable and current values as equalized by the director
of revenue, except that any references to six percent in this
subsection shall be four percent. For valuations established
as of January 1, 2013, and each assessment year thereafter,
the percentage of actual value as equalized by the director of
revenue as provided in section 441.49 at which agricultural
and residential property shall be assessed shall be calculated
in accordance with the methods provided in this subsection,
including the limitation of increases in agricultural and
residential assessed values to the percentage increase of the
other class of property if the other class increases less than
the allowable limit adjusted to include the applicable and
current values as equalized by the director of revenue, except
that any references to six percent in this subsection shall be
three percent.
Sec. 18. Section 441.21, subsection 5, Code 2013, is amended
to read as follows:
5. a. For valuations established as of January 1, 1979,
commercial property and industrial property, excluding
properties referred to in section 427A.1, subsection 8, shall
be assessed as a percentage of the actual value of each class
of property. The percentage shall be determined for each
-9-class of property by the director of revenue for the state in
accordance with the provisions of this section. For valuations
established as of January 1, 1979, the percentage shall be
the quotient of the dividend and divisor as defined in this
section. The dividend for each class of property shall be the
total actual valuation for each class of property established
for 1978, plus six percent of the amount so determined. The
divisor for each class of property shall be the valuation
for each class of property established for 1978, as reported
by the assessors on the abstracts of assessment for 1978,
plus the amount of value added to the total actual value by
the revaluation of existing properties in 1979 as equalized
by the director of revenue pursuant to section 441.49. For
valuations established as of January 1, 1979, property valued
by the department of revenue pursuant to chapters 428, 433,
437, and 438 shall be considered as one class of property and
shall be assessed as a percentage of its actual value. The
percentage shall be determined by the director of revenue in
accordance with the provisions of this section. For valuations
established as of January 1, 1979, the percentage shall be
the quotient of the dividend and divisor as defined in this
section. The dividend shall be the total actual valuation
established for 1978 by the department of revenue, plus ten
percent of the amount so determined. The divisor for property
valued by the department of revenue pursuant to chapters 428,
433, 437, and 438 shall be the valuation established for 1978,
plus the amount of value added to the total actual value by
the revaluation of the property by the department of revenue
as of January 1, 1979. For valuations established as of
January 1, 1980, commercial property and industrial property,
excluding properties referred to in section 427A.1, subsection
8, shall be assessed at a percentage of the actual value of
each class of property. The percentage shall be determined
for each class of property by the director of revenue for the
state in accordance with the provisions of this section. For
valuations established as of January 1, 1980, the percentage
shall be the quotient of the dividend and divisor as defined in
this section. The dividend for each class of property shall
be the dividend as determined for each class of property for
valuations established as of January 1, 1979, adjusted by the
product obtained by multiplying the percentage determined
for that year by the amount of any additions or deletions to
actual value, excluding those resulting from the revaluation
-10-of existing properties, as reported by the assessors on the
abstracts of assessment for 1979, plus four percent of the
amount so determined. The divisor for each class of property
shall be the total actual value of all such property in 1979,
as equalized by the director of revenue pursuant to section
441.49, plus the amount of value added to the total actual
value by the revaluation of existing properties in 1980. The
director shall utilize information reported on the abstracts of
assessment submitted pursuant to section 441.45 in determining
such percentage. For valuations established as of January 1,
1980, property valued by the department of revenue pursuant
to chapters 428, 433, 437, and 438 shall be assessed at a
percentage of its actual value. The percentage shall be
determined by the director of revenue in accordance with the
provisions of this section. For valuations established as of
January 1, 1980, the percentage shall be the quotient of the
dividend and divisor as defined in this section. The dividend
shall be the total actual valuation established for 1979 by
the department of revenue, plus eight percent of the amount so
determined. The divisor for property valued by the department
of revenue pursuant to chapters 428, 433, 437, and 438 shall be
the valuation established for 1979, plus the amount of value
added to the total actual value by the revaluation of the
property by the department of revenue as of January 1, 1980.
For valuations established as of January 1, 1981, and each
year thereafter, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which commercial property and industrial property, excluding
properties referred to in section 427A.1, subsection 8, shall
be assessed shall be calculated in accordance with the methods
provided herein, except that any references to six percent
in this subsection shall be four percent. For valuations
established as of January 1, 1981, and each year thereafter,
the percentage of actual value at which property valued by
the department of revenue pursuant to chapters 428, 433, 437,
and 438 shall be assessed shall be calculated in accordance
with the methods provided herein, except that any references
to ten percent in this subsection shall be eight percent.
Beginning with valuations established as of January 1, 1979,
and each year thereafter, property valued by the department of
revenue pursuant to chapter 434 shall also be assessed at a
percentage of its actual value which percentage shall be equal
to the percentage determined by the director of revenue for
-11-commercial property, industrial property, or property valued
by the department of revenue pursuant to chapters 428, 433,
437, and 438, whichever is lowest. For valuations established
on or after January 1, 2013, property valued by the department
of revenue pursuant to chapter 434 shall be assessed at a
percentage of its actual value equal to the percentage of
actual value at which property assessed as commercial property
is assessed under paragraph “b” for the same assessment year.
b. For valuations established on or after January 1, 2013,
commercial property, excluding properties referred to in
section 427A.1, subsection 8, shall be assessed at a percentage
of its actual value, as determined in this paragraph “b”.
For valuations established for the assessment year beginning
January 1, 2013, the percentage of actual value as equalized by
the director of revenue as provided in section 441.49 at which
commercial property shall be assessed shall be ninety-five
percent. For valuations established for the assessment year
beginning January 1, 2014, and each assessment year thereafter,
the percentage of actual value as equalized by the director
of revenue as provided in section 441.49 at which commercial
property shall be assessed shall be ninety percent.
c. For valuations established on or after January 1, 2013,
industrial property, excluding properties referred to in
section 427A.1, subsection 8, shall be assessed at a percentage
of its actual value, as determined in this paragraph “c”.
For valuations established for the assessment year beginning
January 1, 2013, the percentage of actual value as equalized by
the director of revenue as provided in section 441.49 at which
industrial property shall be assessed shall be ninety-five
percent. For valuations established for the assessment year
beginning January 1, 2014, and each assessment year thereafter,
the percentage of actual value as equalized by the director
of revenue as provided in section 441.49 at which industrial
property shall be assessed shall be ninety percent.
Sec. 19. Section 441.21, subsections 9 and 10, Code 2013,
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, property valued by
the department of revenue pursuant to chapter 434, and property
valued by the department of revenue pursuant to chapters 428,
-12-433, 434, 437, and 438 in each assessing jurisdiction in the
county shall be assessed for taxation. The county auditor
shall proceed to determine the assessed values of agricultural
property, residential property, commercial property, industrial
property, property valued by the department of revenue pursuant
to chapter 434, and property valued by the department of
revenue pursuant to chapters 428, 433, 434, 437, and 438 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 percentage of actual value computed by the
director for agricultural property, residential property,
commercial property, industrial property, property valued by
the department of revenue pursuant to chapter 434, and property
valued by the department of revenue pursuant to chapters 428,
433, 434, 437, and 438 and used to determine assessed values of
those classes of property does not constitute a rule as defined
in section 17A.2, subsection 11.
Sec. 20. NEW SECTION. 441.21A Commercial and industrial
property tax replacement —— replacement claims.
1. a. For each fiscal year beginning on or after July
1, 2014, there is appropriated from the general fund of the
state to the department of revenue an amount necessary for
the payment of all commercial and industrial property tax
replacement claims under this section for the fiscal year.
However, for a fiscal year beginning on or after July 1, 2017,
the total amount of moneys appropriated from the general fund
of the state to the department of revenue for the payment of
commercial and industrial property tax replacement claims in
that fiscal year shall not exceed the total amount of money
necessary to pay all commercial and industrial property tax
replacement claims for the fiscal year beginning July 1, 2016.
b. Moneys appropriated by the general assembly to the
department under this subsection for the payment of commercial
and industrial property tax replacement claims are not subject
to a uniform reduction in appropriations in accordance with
section 8.31.
2. Beginning with the fiscal year beginning July 1, 2014,
each county treasurer shall be paid by the department of
revenue an amount equal to the amount of the commercial and
industrial property tax replacement claims in the county, as
calculated in subsection 4. If an amount appropriated for a
-13-fiscal year is insufficient to pay all replacement claims, the
director of revenue shall prorate the payment of replacement
claims to the county treasurers and shall notify the county
auditors of the pro rata percentage on or before September 30.
3. On or before July 1 of each fiscal year beginning on or
after July 1, 2014, the assessor shall report to the county
auditor the total actual value of all commercial property and
industrial property in the county that is subject to assessment
and taxation for the assessment year used to calculate the
taxes due and payable in that fiscal year.
4. On or before a date established by rule of the department
of revenue of each fiscal year beginning on or after July 1,
2014, the county auditor shall prepare a statement, based upon
the report received pursuant to subsection 3, listing for each
taxing district in the county:
a. The difference between the assessed valuation of all
commercial property and industrial property for the assessment
year used to calculate taxes which are due and payable in the
applicable fiscal year and the actual value of all commercial
property and industrial property that is subject to assessment
and taxation for the same assessment year. If the difference
between the assessed value of all commercial property and
industrial property and the actual valuation of all commercial
property and industrial property is zero, there is no tax
replacement for that taxing district for the fiscal year.
b. The tax levy rate per one thousand dollars of assessed
value for each taxing district for that fiscal year.
c. The commercial and industrial property tax replacement
claim for each taxing district. The replacement claim is equal
to the amount determined pursuant to paragraph “a”, multiplied
by the tax rate specified in paragraph “b”, and then divided by
one thousand dollars.
5. For purposes of computing replacement amounts under
this section, that portion of an urban renewal area defined as
the sum of the assessed valuations defined in section 403.19,
subsections 1 and 2, shall be considered a taxing district.
6. a. The county auditor shall certify and forward one copy
of the statement to the department of revenue not later than
a date of each year established by the department of revenue
by rule.
b. The replacement claims shall be paid to each county
treasurer in equal installments in September and March of each
year. The county treasurer shall apportion the replacement
-14-claim payments among the eligible taxing districts in the
county.
c. If the taxing district is an urban renewal area, the
amount of the replacement claim shall be apportioned and
credited to those portions of the assessed value defined in
section 403.19, subsections 1 and 2, as follows:
(1) To that portion defined in section 403.19, subsection
1, an amount of the replacement claim that is proportionate to
the amount of actual value of the commercial and industrial
property in the urban renewal area as determined in section
403.19, subsection 1, that was subtracted pursuant to section
403.20, as it bears to the total amount of actual value of
the commercial and industrial property in the urban renewal
area that was subtracted pursuant to section 403.20 for the
assessment year for property taxes due and payable in the
fiscal year for which the replacement claim is computed.
(2) To that portion defined in section 403.19, subsection 2,
the remaining amount, if any.
d. Notwithstanding the allocation provisions of paragraph
“c”, the amount of the tax replacement amount that shall be
allocated to that portion of the assessed value defined in
section 403.19, subsection 2, shall not exceed the amount equal
to the amount certified to the county auditor under section
403.19 for the fiscal year in which the claim is paid, after
deduction of the amount of other revenues committed for payment
on that amount for the fiscal year. The amount not allocated
to that portion of the assessed value defined in section
403.19, subsection 2, as a result of the operation of this
paragraph, shall be allocated to that portion of assessed value
defined in section 403.19, subsection 1.
e. The amount of the replacement claim amount credited to
the portion of the assessed value defined in section 403.19,
subsection 1, shall be allocated to and when received be paid
into the fund for the respective taxing district as taxes by
or for the taxing district into which all other property taxes
are paid. The amount of the replacement claim amount credited
to the portion of the assessed value defined in section 403.19,
subsection 2, shall be allocated to and when collected be paid
into the special fund of the municipality under section 403.19,
subsection 2.
Sec. 21. SAVINGS PROVISION. This division of this Act,
pursuant to section 4.13, does not affect the operation of,
or prohibit the application of, prior provisions of section
-15-441.21, or rules adopted under chapter 17A to administer prior
provisions of section 441.21, for assessment years beginning
before January 1, 2013, and for duties, powers, protests,
appeals, proceedings, actions, or remedies attributable to an
assessment year beginning before January 1, 2013.
Sec. 22. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 23. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2013, for assessment
years beginning on or after that date.
DIVISION III
MULTIRESIDENTIAL PROPERTY CLASSIFICATION
Sec. 24. Section 404.2, subsection 2, paragraph f, Code
2013, is amended to read as follows:
f. A statement specifying whether the revitalization is
applicable to none, some, or all of the property assessed as
residential, multiresidential, agricultural, commercial, or
industrial property within the designated area or a combination
thereof and whether the revitalization is for rehabilitation
and additions to existing buildings or new construction or
both. If revitalization is made applicable only to some
property within an assessment classification, the definition of
that subset of eligible property must be by uniform criteria
which further some planning objective identified in the plan.
The city shall state how long it is estimated that the area
shall remain a designated revitalization area which time
shall be longer than one year from the date of designation
and shall state any plan by the city to issue revenue bonds
for revitalization projects within the area. For a county, a
revitalization area shall include only property which will be
used as industrial property, commercial property, commercial
property consisting of three or more separate living quarters
with at least seventy-five percent of the space used for
residential purposes, multiresidential property, or residential
property. However, a county shall not provide a tax exemption
under this chapter to commercial property, commercial property
consisting of three or more separate living quarters with at
least seventy-five percent of the space used for residential
purposes multiresidential property, or residential property
which is located within the limits of a city.
Sec. 25. Section 404.3, subsection 4, Code 2013, is amended
to read as follows:
-16- 4. a. All qualified real estate assessed as residential
property or assessed as commercial property, if the commercial
property consists of three or more separate living quarters
with at least seventy-five percent of the space used for
residential purposes, any of the following is eligible to
receive a one hundred percent exemption from taxation on the
actual value added by the improvements.:
(1) Residential property.
(2) Commercial property if the commercial property
consists of three or more separate living quarters with at
least seventy-five percent of the space used for residential
purposes.
(3) Multiresidential property if the multiresidential
property consists of three or more separate living quarters
with at least seventy-five percent of the space used for
residential purposes.
b. The exemption is for a period of ten years.
Sec. 26. Section 441.21, subsection 8, paragraph b, Code
2013, is amended to read as follows:
b. Notwithstanding paragraph “a”, any construction or
installation of a solar energy system on property classified
as agricultural, residential, commercial, multiresidential, or
industrial property shall not increase the actual, assessed,
and taxable values of the property for five full assessment
years.
Sec. 27. Section 441.21, subsections 9 and 10, Code 2013,
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, multiresidential property,
and property valued by the department of revenue pursuant
to chapters 428, 433, 434, 437, and 438 in each assessing
jurisdiction in the county shall be assessed for taxation. The
county auditor shall proceed to determine the assessed values
of agricultural property, residential property, commercial
property, industrial property, multiresidential property,
and property valued by the department of revenue pursuant
to chapters 428, 433, 434, 437, and 438 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
-17-such properties upon which the levy shall be made.
10. The percentage of actual value computed by the
director for agricultural property, residential property,
commercial property, industrial property, multiresidential
property, and property valued by the department of revenue
pursuant to chapters 428, 433, 434, 437, and 438 and used to
determine assessed values of those classes of property does not
constitute a rule as defined in section 17A.2, subsection 11.
Sec. 28. Section 441.21, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION. 13. a. Beginning with valuations
established on or after January 1, 2015, mobile home parks,
manufactured home communities, land-leased communities,
assisted living facilities, property primarily used or intended
for human habitation containing three or more separate dwelling
units, and that portion of a building that is used or intended
for human habitation and a proportionate share of the land
upon which the building is situated, regardless of the number
of dwelling units located in the building, if the use for
human habitation is not the primary use of the building and
such building is not otherwise classified as residential
property, shall be valued as a separate class of property
known as multiresidential property and, excluding properties
referred to in section 427A.1, subsection 8, shall be assessed
at a percentage of its actual value, as determined in this
subsection.
b. For valuations established for the assessment year
beginning January 1, 2015, the percentage of actual value as
equalized by the director of revenue as provided in section
441.49 at which multiresidential property shall be assessed
shall be the greater of eighty-six and twenty-five hundredths
percent or the percentage of actual value determined by the
director of revenue at which property assessed as residential
property is assessed for the same assessment year under
subsection 4. For valuations established for the assessment
year beginning January 1, 2016, the percentage of actual value
as equalized by the director of revenue as provided in section
441.49 at which multiresidential property shall be assessed
shall be the greater of eighty-two and five-tenths percent or
the percentage of actual value determined by the director of
revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
-18-January 1, 2017, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which multiresidential property shall be assessed shall be the
greater of seventy-eight and seventy-five hundredths percent
or the percentage of actual value determined by the director
of revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
January 1, 2018, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which multiresidential property shall be assessed shall be
the greater of seventy-five percent or the percentage of
actual value determined by the director of revenue at which
property assessed as residential property is assessed for
the same assessment year under subsection 4. For valuations
established for the assessment year beginning January 1,
2019, the percentage of actual value as equalized by the
director of revenue as provided in section 441.49 at which
multiresidential property shall be assessed shall be the
greater of seventy-one and twenty-five hundredths percent or
the percentage of actual value determined by the director of
revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
January 1, 2020, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which multiresidential property shall be assessed shall be
the greater of sixty-seven and five-tenths percent or the
percentage of actual value determined by the director of
revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
January 1, 2021, the percentage of actual value as equalized
by the director of revenue as provided in section 441.49 at
which multiresidential property shall be assessed shall be the
greater of sixty-three and seventy-five hundredths percent or
the percentage of actual value determined by the director of
revenue at which property assessed as residential property
is assessed for the same assessment year under subsection 4.
For valuations established for the assessment year beginning
January 1, 2022, and each assessment year thereafter, the
percentage of actual value as equalized by the director of
revenue as provided in section 441.49 at which multiresidential
-19-property shall be assessed shall be equal to the percentage of
actual value determined by the director of revenue at which
property assessed as residential property is assessed under
subsection 4 for the same assessment year.
c. Accordingly, for parcels that, in part, satisfy the
requirements for classification as multiresidential property,
the assessor shall assign to that portion of the parcel the
classification of multiresidential property and to such other
portions of the parcel the property classification for which
such other portions qualify.
d. In no case, however, shall property that is rented or
leased to low-income individuals and families as authorized by
section 42 of the Internal Revenue Code, and that is subject
to assessment procedures relating to section 42 property under
section 441.21, subsection 2, or a hotel, motel, inn, or other
building where rooms or dwelling units are usually rented for
less than one month be classified as multiresidential property
under this subsection.
e. As used in this subsection:
(1) “Assisted living facility” means property for providing
assisted living as defined in section 231C.2. “Assisted living
facility” also includes a health care facility, as defined in
section 135C.1, an elder group home, as defined in section
231B.1, a child foster care facility under chapter 237, or
property used for a hospice program as defined in section
135J.1.
(2) “Dwelling unit” means an apartment, group of rooms,
or single room which is occupied as separate living quarters
or, if vacant, is intended for occupancy as separate living
quarters, in which a tenant can live and sleep separately from
any other persons in the building.
(3) “Land-leased community” means the same as defined in
sections 335.30A and 414.28A.
(4) “Manufactured home community” means the same as a
land-leased community.
(5) “Mobile home park” means the same as defined in section
435.1.
Sec. 29. Section 558.46, subsection 5, Code 2013, is amended
to read as follows:
5. For the purposes of this section, “residential property”
includes commercial or multiresidential property consisting if
such commercial or multiresidential property consists of three
or more separate living quarters with at least seventy-five
-20-percent of the space used for residential purposes.
Sec. 30. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2015.
DIVISION IV
TELECOMMUNICATIONS COMPANY PROPERTY TAXATION
Sec. 31. Section 433.4, Code 2013, is amended to read as
follows:
433.4 Assessment and exemption.
1. The director of revenue shall on or before October 31
each year, proceed to find the actual value of the property of
these companies in this state that is used by the companies in
the transaction of telegraph and telephone business, taking
into consideration the information obtained from the statements
required, and any further information the director can obtain,
using the same as a means for determining the actual cash value
of the property of these companies within this state. The
director shall also take into consideration the valuation of
all property of these companies, including franchises and the
use of the property in connection with lines outside the state,
and making these deductions as may be necessary on account of
extra value of property outside the state as compared with
the value of property in the state, in order that the actual
cash value of the property of the company within this state
may be ascertained. The assessment shall include all property
of every kind and character whatsoever, real, personal, or
mixed, used by the companies in the transaction of telegraph
and telephone business; and the. The property so included in
the assessment shall not be taxed in any other manner than as
provided in this chapter.
2. a. For assessment years beginning on or after January
1, 2013, each company assessed for taxation under this chapter
shall receive a partial exemption from taxation on the value of
the company’s property as provided in this subsection.
b. For the assessment year beginning January 1, 2013, the
total amount of the exemption for each company shall be equal
to the sum of the following amounts:
(1) An amount equal to twenty percent of the actual value
of the property of such company for that assessment year, as
determined under subsection 1, that exceeds zero dollars but
does not exceed twenty million dollars.
(2) An amount equal to seventeen and five-tenths percent
of the actual value of the property of such company for that
assessment year, as determined under subsection 1, that exceeds
-21-twenty million dollars but does not exceed fifty-five million
dollars.
(3) An amount equal to twelve and five-tenths percent of
the actual value of the property of such company for that
assessment year, as determined under subsection 1, that exceeds
fifty-five million dollars but does not exceed five hundred
million dollars.
(4) An amount equal to ten percent of the actual value
of the property of such company for that assessment year,
as determined under subsection 1, that exceeds five hundred
million dollars.
c. For the assessment year beginning January 1, 2014,
and each assessment year thereafter, the total amount of the
exemption for each company shall be equal to the sum of the
following amounts:
(1) An amount equal to forty percent of the actual value
of the property of such company for that assessment year, as
determined under subsection 1, that exceeds zero dollars but
does not exceed twenty million dollars.
(2) An amount equal to thirty-five percent of the actual
value of the property of such company for that assessment year,
as determined under subsection 1, that exceeds twenty million
dollars but does not exceed fifty-five million dollars.
(3) An amount equal to twenty-five percent of the actual
value of the property of such company for that assessment year,
as determined under subsection 1, that exceeds fifty-five
million dollars but does not exceed five hundred million
dollars.
(4) An amount equal to twenty percent of the actual value
of the property of such company for that assessment year,
as determined under subsection 1, that exceeds five hundred
million dollars.
Sec. 32. Section 433.5, Code 2013, is amended to read as
follows:
433.5 Actual value per mile —— exemption value per mile.
1. The director of revenue shall ascertain the actual value
per mile of the property of each of said companies company
within this state by dividing the total actual value, as above
ascertained under section 433.4, subsection 1, by the number of
miles of line of such company within the state, and the result
shall be deemed and held to be the actual value per mile of line
of the property of such company within this state.
2. The director of revenue shall ascertain the exemption
-22-value per mile of the property of each company within this
state by dividing the amount of the exemption for that company
determined under section 433.4, subsection 2, by the number of
miles of line of such company within the state, and the result
shall be deemed and held to be the exemption value per mile of
line for that company.
Sec. 33. Section 433.8, Code 2013, is amended to read as
follows:
433.8 Assessment in each county —— how certified.
The director of revenue shall, for the purpose of
determining what amount shall be assessed to any one of said
companies each company in each county of the state into which
the line of the said company extends, multiply the assessed
or taxable value per mile of line of said company, as above
ascertained, by the number of miles in each of said counties,
and the result thereof shall be by the director certified
certify to the several county auditors of the respective
counties into, over, or through which said line extends
the number of miles of line in the county for that company,
the actual value per mile of line for that company, and the
exemption value per mile of line for that company.
Sec. 34. Section 433.9, Code 2013, is amended to read as
follows:
433.9 Entry of certificate.
At the first meeting of the board of supervisors held after
such statement the certification made under section 433.8 is
received by the county auditor, it the board shall cause such
statement certification to be entered in its minute book, and
make and enter therein an order stating the length of the
lines, and the assessed actual value of the property, and
the exempted value of the property of each of said companies
situated in each city, township, or lesser taxing district
in its county, as fixed by the director of revenue, which.
The value certified by the director of revenue, following
application of the percentage of actual value under section
441.21, and following the application of the exemption value
certified by the director of revenue, shall constitute the
taxable value of said property for taxing purposes, and the
taxes on said property when collected by the county treasurer
shall be disposed of as other taxes on real estate. The county
auditor shall transmit a copy of said order to the council or
trustees of each city or township in which the lines of said
company extend.
-23- Sec. 35. REPEAL. Section 433.6, Code 2013, is repealed.
Sec. 36. PROPERTY TAXATION OF TELECOMMUNICATIONS COMPANIES
STUDY —— REPORT.
1. a. The department of revenue, in consultation with
the department of management, representatives of companies
providing telecommunications services in this state by
any means, including but not limited to mobile, wireless,
voice over internet protocol, and landline, and other
interested persons shall study the current system of assessing
telecommunications company property and levying property tax
against companies that provide telecommunications services in
this state and make recommendations for changes.
b. The department of revenue shall prepare and file a report
detailing recommendations for changes to the current system
of assessing telecommunications company property and levying
property tax against companies providing telecommunications
services in this state. The report shall also include
recommendations for establishing methods to provide
equivalent property tax treatment for all companies providing
telecommunications services in this state and recommendations
for apportioning property tax revenues to the appropriate
local taxing authorities in the state. The report shall also
include proposed legislation to implement the recommendations
contained in the report. The report shall be filed by the
department of revenue with the chairpersons and ranking members
of the ways and means committees of the senate and the house
of representatives and with the legislative services agency by
August 1, 2015.
c. Upon receipt of the report by the chairpersons and
ranking members of the ways and means committees under
paragraph “b”, a legislative telecommunications company
property tax review committee consisting of six members of
the general assembly, two appointed by the majority leader
of the senate, one appointed by the minority leader of
the senate, two appointed by the speaker of the house of
representatives, and one appointed by the minority leader of
the house of representatives shall review the information and
recommendations contained in the report. The department of
revenue shall provide additional information and analysis to
the review committee or the general assembly upon request of
the review committee.
2. Each company providing telecommunications services in
this state by any means, including but not limited to mobile,
-24-wireless, voice over internet protocol, and landline, shall on
or before a date specified by the director of revenue submit to
the department of revenue such information determined by the
director of revenue to be necessary to facilitate the creation
of the report required under this section. However, the
director of revenue shall only request aggregate statistical
data or information from such companies and in no case shall
such companies be required under this section to provide data
or information about any individual end user or customer,
including but not limited to account information, place of
primary use, or service address information within the meaning
of section 423.20. In addition, such companies shall not be
required to resubmit any information that was submitted to the
director of revenue pursuant to the requirements of chapter
433. Information provided to the department under this section
shall be verified by the company’s president or secretary. The
confidentiality provisions of sections 422.20 and 422.72 apply
to all information received by the department of revenue for
purposes of the report pursuant to this section and pursuant
to chapter 433, if applicable.
Sec. 37. IMPLEMENTATION. Section 25B.7 shall not apply to
this division of this Act.
Sec. 38. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 39. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to assessment years beginning on or
after January 1, 2013.
DIVISION V
IOWA TAXPAYERS TRUST FUND TAX CREDIT
Sec. 40. TAXPAYERS TRUST FUND —— IOWA TAXPAYERS TRUST FUND
TAX CREDIT TRANSFER. During the fiscal year beginning July
1, 2013, there is transferred from the taxpayers trust fund
created in section 8.57E to the Iowa taxpayers trust fund tax
credit fund created in section 422.11E, an amount equal to the
sum of the balance of the taxpayers trust fund as determined
after the close of the fiscal year beginning July 1, 2012, and
ending June 30, 2013, including the amount transferred for that
fiscal year to the taxpayers trust fund from the Iowa economic
emergency fund created in section 8.55 in the fiscal year
beginning July 1, 2013, and ending June 30, 2014, to be used
for the Iowa taxpayers trust fund tax credit in accordance with
section 422.11E, subsection 5.
-25- Sec. 41. Section 8.57E, subsection 2, Code 2013, is amended
to read as follows:
2. Moneys in the taxpayers trust fund shall only be used
pursuant to appropriations or transfers made by the general
assembly for tax relief. During each fiscal year beginning on
or after July 1, 2014, in which the balance of the taxpayers
trust fund equals or exceeds thirty million dollars, there is
transferred from the taxpayers trust fund to the Iowa taxpayers
trust fund tax credit fund created in section 422.11E, the
entire balance of the taxpayers trust fund to be used for the
Iowa taxpayers trust fund tax credit in accordance with section
422.11E, subsection 5.
Sec. 42. Section 257.21, unnumbered paragraph 2, Code 2013,
is amended to read as follows:
The instructional support income surtax shall be imposed on
the state individual income tax for the calendar year during
which the school’s budget year begins, or for a taxpayer’s
fiscal year ending during the second half of that calendar year
and after the date the board adopts a resolution to participate
in the program or the first half of the succeeding calendar
year, and shall be imposed on all individuals residing in the
school district on the last day of the applicable tax year.
As used in this section, “state individual income tax” means
the taxes computed under section 422.5, less the amounts of
nonrefundable credits allowed under chapter 422, division II,
except for the Iowa taxpayers trust fund tax credit allowed
under section 422.11E.
Sec. 43. NEW SECTION. 422.11E Iowa taxpayers trust fund
tax credit.
1. For purposes of this section, unless the context
otherwise requires:
a. “Eligible individual” means, with respect to a tax year,
an individual who makes and files an individual income tax
return pursuant to section 422.13. “Eligible individual” does
not include an estate or trust, or an individual for whom an
individual income tax return was not timely filed, including
extensions.
b. “Unclaimed tax credit” means, with respect to a tax
year, the aggregate amount by which the Iowa taxpayers trust
fund tax credits that were eligible to be claimed by eligible
individuals, if any, exceeds the Iowa taxpayers trust fund tax
credits actually claimed by eligible individuals, if any.
2. The taxes imposed under this division, less the credits
-26-allowed under this division except the credits for withheld
tax and estimated tax paid in section 422.16, shall be reduced
by an Iowa taxpayers trust fund tax credit to an eligible
individual for the tax year beginning January 1 immediately
preceding July 1 of any fiscal year during which a transfer, if
any, is made from the taxpayers trust fund in section 8.57E to
the Iowa taxpayers trust fund tax credit fund created in this
section.
3. The credit shall be equal to the quotient of the amount
transferred to the Iowa taxpayers trust fund tax credit fund in
the applicable fiscal year, divided by the number of eligible
individuals for the tax year immediately preceding the tax year
for which the credit in this section is allowed, as determined
by the director of revenue in accordance with this section,
rounded down to the nearest whole dollar. The department of
revenue shall draft the income tax form for any tax year in
which a credit will be allowed under this section to provide
the information and space necessary for eligible individuals to
claim the credit.
4. Any credit in excess of the taxpayer’s liability for the
tax year is not refundable and shall not be credited to the tax
liability for any following year or carried back to a tax year
prior to the tax year in which the taxpayer claims the credit.
5. a. There is established within the state treasury under
the control of the department an Iowa taxpayers trust fund
tax credit fund consisting of any moneys transferred by the
general assembly by law from the taxpayers trust fund created
in section 8.57E for purposes of the credit provided in this
section. For the fiscal year beginning July 1, 2013, and for
each fiscal year thereafter, the department shall transfer
from the Iowa taxpayers trust fund tax credit fund to the
general fund of the state, the lesser of the balance of the
Iowa taxpayers trust fund tax credit fund or an amount of money
equal to the Iowa taxpayers trust fund tax credits claimed in
that fiscal year, if any. Any moneys in the Iowa taxpayers
trust fund tax credit fund which represent unclaimed tax
credits shall immediately revert to the taxpayers trust fund
created in section 8.57E. Interest or earnings on moneys in
the Iowa taxpayers trust fund tax credit fund shall be credited
to the taxpayers trust fund created in section 8.57E.
b. The moneys transferred to the general fund of the state
in accordance with this subsection shall not be considered new
revenues for purposes of the state general fund expenditure
-27-limitation under section 8.54 but instead as replacement of
a like amount included in the expenditure limitation for the
fiscal year in which the transfer is made.
Sec. 44. Section 422D.2, Code 2013, is amended to read as
follows:
422D.2 Local income surtax.
A county may impose by ordinance a local income surtax as
provided in section 422D.1 at the rate set by the board of
supervisors, of up to one percent, on the state individual
income tax of each individual residing in the county at the
end of the individual’s applicable tax year. However, the
cumulative total of the percents of income surtax imposed on
any taxpayer in the county shall not exceed twenty percent.
The reason for imposing the surtax and the amount needed
shall be set out in the ordinance. The surtax rate shall be
set to raise only the amount needed. For purposes of this
section, “state individual income tax” means the tax computed
under section 422.5, less the amounts of nonrefundable credits
allowed under chapter 422, division II, except for the Iowa
taxpayers trust fund tax credit allowed under section 422.11E.
Sec. 45. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 46. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2013, for tax years
beginning on or after that date.
DIVISION VI
property assessment appeal board
Sec. 47. Section 421.1A, subsection 2, paragraph b, Code
2013, is amended to read as follows:
b. Each member of the property assessment appeal board shall
be qualified by virtue of at least two years’ experience in the
area of government, corporate, or private practice relating
to property appraisal and property tax administration. One
member Two members of the board shall be a certified real
estate appraiser or hold a professional appraisal designation,
property appraisers and one member shall be an attorney
practicing in the area of state and local taxation or property
tax appraisals, and one member shall be a professional with
experience in the field of accounting or finance and with
experience in state and local taxation matters. No more than
two members of the board may be from the same political party
as that term is defined in section 43.2.
-28- Sec. 48. Section 421.1A, subsection 6, Code 2013, is amended
to read as follows:
6. The members of the property assessment appeal board
shall receive compensation from the state commensurate with the
salary of a district judge through December 31, 2013 a salary
set by the governor within a range established by the general
assembly. The members of the board shall be considered state
employees for purposes of salary and benefits. The members
of the board and any employees of the board, when required to
travel in the discharge of official duties, shall be paid their
actual and necessary expenses incurred in the performance of
duties.
Sec. 49. Section 421.1A, subsection 7, Code 2013, is amended
by striking the subsection.
Sec. 50. Section 441.21, subsection 3, Code 2013, is amended
to read as follows:
3. a. “Actual value”, “taxable value”, or “assessed
value” as used in other sections of the Code in relation to
assessment of property for taxation shall mean the valuations
as determined by this section; however, other provisions of
the Code providing special methods or formulas for assessing
or valuing specified property shall remain in effect, but this
section shall be applicable to the extent consistent with such
provisions. The assessor and department of revenue shall
disclose at the written request of the taxpayer all information
in any formula or method used to determine the actual value of
the taxpayer’s property.
b. The burden of proof shall be upon any complainant
attacking such valuation as excessive, inadequate, inequitable,
or capricious; however, in protest or appeal proceedings when
the complainant offers competent evidence by at least two
disinterested witnesses that the market value of the property
is less than the market value determined by the assessor, the
burden of proof thereafter shall be upon the officials or
persons seeking to uphold such valuation to be assessed.
Sec. 51. Section 441.23, Code 2013, is amended to read as
follows:
441.23 Notice of valuation.
If there has been an increase or decrease in the valuation
of the property, or upon the written request of the person
assessed, the assessor shall, at the time of making the
assessment, inform the person assessed, in writing, of the
valuation put upon the taxpayer’s property, and notify the
-29-person, that if the person feels aggrieved, to contact the
assessor pursuant to section 441.30 or to appear before the
board of review and show why the assessment should be changed.
However, if the valuation of a class of property is uniformly
decreased, the assessor may notify the affected property owners
by publication in the official newspapers of the county. The
owners of real property shall be notified not later than April
15 1 of any adjustment of the real property assessment.
Sec. 52. Section 441.26, subsection 1, Code 2013, is amended
to read as follows:
1. The director of revenue shall each year prescribe
the form of assessment roll to be used by all assessors in
assessing property, in this state, also the form of pages of
the assessor’s assessment book. The assessment rolls shall
be in a form that will permit entering, separately, the names
of all persons assessed, and shall also contain a notice in
substantially the following form:
If you are not satisfied that the foregoing assessment is
correct, you may contact the assessor on or after April 1, to
and including May 4, of the year of the assessment to request
an informal review of the assessment pursuant to section
441.30.
If you are not satisfied that the foregoing assessment is
correct, you may file a protest against such assessment with
the board of review on or after April 16 7, to and including May
5, of the year of the assessment, such protest to be confined
to the grounds specified in section 441.37.
Dated: .. day of ... (month), .. (year)
...........
County/City Assessor.
Sec. 53. Section 441.28, Code 2013, is amended to read as
follows:
441.28 Assessment rolls —— change —— notice to taxpayer.
The assessment shall be completed not later than April 15 1
each year. If the assessor makes any change in an assessment
after it has been entered on the assessor’s rolls, the assessor
shall note on the roll, together with the original assessment,
the new assessment and the reason for the change, together with
the assessor’s signature and the date of the change. Provided,
however, in the event the assessor increases any assessment
the assessor shall give notice of the increase in writing to
the taxpayer by mail postmarked no later than April 15 1. No
changes shall be made on the assessment rolls after April 15
-30- 1 except by order of the board of review or of the property
assessment appeal board, or by decree of court.
Sec. 54. NEW SECTION. 441.30 Informal assessment review
period —— recommendation.
1. Any property owner or aggrieved taxpayer who is
dissatisfied with the owner’s or taxpayer’s assessment may
contact the assessor by telephone or in writing by paper or
electronic medium on or after April 1, to and including May 4,
of the year of the assessment to inquire about the specifics
and accuracy of the assessment. Such an inquiry may also
include a request for an informal review of the assessment
by the assessor under one or more of the grounds for protest
authorized under section 441.37 for the same assessment year.
2. In response to an inquiry under subsection 1, if the
assessor, following an informal review, determines that the
assessment was incorrect under one or more of the grounds for
protest authorized under section 441.37 for the same assessment
year, the assessor may recommend that the property owner or
aggrieved taxpayer file a protest with the local board of
review and may file a recommendation with the local board of
review related to the informal review.
3. A recommendation filed with the local board of review
by the assessor pursuant to subsection 2 shall be utilized by
the local board of review in the evaluation of all evidence
properly before the local board of review.
4. This section, including any action taken by the assessor
under this section, shall not be construed to limit a property
owner or taxpayer’s ability to file a protest with the local
board of review under section 441.37.
Sec. 55. Section 441.35, subsection 2, Code 2013, is amended
to read as follows:
2. In any year after the year in which an assessment has
been made of all of the real estate in any taxing district, the
board of review shall meet as provided in section 441.33, and
where the board finds the same has changed in value, the board
shall revalue and reassess any part or all of the real estate
contained in such taxing district, and in such case, the board
shall determine the actual value as of January 1 of the year of
the revaluation and reassessment and compute the taxable value
thereof. Any aggrieved taxpayer may petition for a revaluation
of the taxpayer’s property, but no reduction or increase
shall be made for prior years. If the assessment of any such
property is raised, or any property is added to the tax list by
-31-the board, the clerk shall give notice in the manner provided
in section 441.36. However, if the assessment of all property
in any taxing district is raised, the board may instruct the
clerk to give immediate notice by one publication in one of
the official newspapers located in the taxing district, and
such published notice shall take the place of the mailed notice
provided for in section 441.36, but all other provisions of
that section shall apply. The decision of the board as to the
foregoing matters shall be subject to appeal to the property
assessment appeal board within the same time and in the same
manner as provided in section 441.37A and to the district court
within the same time and in the same manner as provided in
section 441.38.
Sec. 56. Section 441.37, subsection 1, paragraphs a and b,
Code 2013, are amended to read as follows:
a. Any property owner or aggrieved taxpayer who is
dissatisfied with the owner’s or taxpayer’s assessment may file
a protest against such assessment with the board of review on
or after April 16 7, to and including May 5, of the year of
the assessment. In any county which has been declared to be a
disaster area by proper federal authorities after March 1 and
prior to May 20 of said year of assessment, the board of review
shall be authorized to remain in session until June 15 and the
time for filing a protest shall be extended to and include the
period from May 25 to June 5 of such year. Said The protest
shall be in writing and, except as provided in subsection
2A, signed by the one protesting or by the protester’s duly
authorized agent. The taxpayer may have an oral hearing
thereon on the protest if the request therefor for the oral
hearing is made in writing is made at the time of filing the
protest. Said The protest must be confined to one or more of
the following grounds:
(1) For odd-numbered assessment years and for even-numbered
assessment years for property that was reassessed in such
even-numbered assessment year:
(a) That said assessment is not equitable as compared with
assessments of other like property in the taxing district.
When this ground is relied upon as the basis of a protest the
legal description and assessments of a representative number of
comparable properties, as described by the aggrieved taxpayer
shall be listed on the protest, otherwise said protest shall
not be considered on this ground.
(2) (b) That the property is assessed for more than
-32-the value authorized by law, stating. When this ground is
relied upon, the protesting party shall state the specific
amount which the protesting party believes the property to be
overassessed, and the amount which the party considers to be
its actual value and the amount the party considers a fair
assessment.
(3) (c) That the property is not assessable, is exempt
from taxes, or is misclassified and stating the reasons for the
protest.
(4) (d) That there is an error in the assessment and state
the specific alleged error. When this ground is relied upon,
the error may include but is not limited to listing errors,
clerical or mathematical errors, or other errors that result
in an error in the assessment.
(5) (e) That there is fraud in the assessment which shall
be specifically stated.
(2) For even-numbered assessment years, when the property
has not been reassessed in such even-numbered assessment year,
that there has been a decrease in the value of the property
from the previous reassessment year. When this ground is
relied upon, the protesting party shall show the decrease
in value by comparing the market value of the property as
of January 1 of the current assessment year and the actual
value of the property for the previous reassessment year.
Such protest shall be in the same manner as described in this
section and shall be reviewed by the local board of review
pursuant to section 441.35, subsection 2, but a reduction or
increase shall not be made for prior years.
b. In addition to the above, the property owner may protest
annually to the board of review under the provisions of section
441.35, but such protest shall be in the same manner and upon
the same terms as heretofore prescribed in this section. The
burden of proof for all protests filed under this section shall
be as stated in section 441.21, subsection 3.
Sec. 57. Section 441.37, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION. 2A. For assessment years beginning on or
after January 1, 2014, the board of review may allow property
owners or aggrieved taxpayers who are dissatisfied with the
owner’s or taxpayer’s assessment to file a protest against
such assessment by electronic means. Electronic filing of
assessment protests may be authorized for the protest period
that begins April 7, the protest period that begins October 15,
-33-or both. Except for the requirement that a protest be signed,
all other requirements of this section for an assessment
protest to the board of review shall apply to a protest filed
electronically. If electronic filing is authorized by the
local board of review, the availability of electronic filing
shall be clearly indicated on the assessment roll notice
provided to the property owner or taxpayer and included in the
published equalization order notice.
Sec. 58. Section 441.37A, subsection 1, paragraphs a and b,
Code 2013, are amended to read as follows:
a. For the assessment year beginning January 1, 2007, and
all subsequent assessment years beginning before January 1,
2018, appeals may be taken from the action of the board of
review with reference to protests of assessment, valuation, or
application of an equalization order to the property assessment
appeal board created in section 421.1A. However, a property
owner or aggrieved taxpayer or an appellant described in
section 441.42 may bypass the property assessment appeal board
and appeal the decision of the local board of review to the
district court pursuant to section 441.38.
b. For an appeal to the property assessment appeal board to
be valid, written notice must be filed by the party appealing
the decision with the secretary of the property assessment
appeal board within twenty days after the date the board of
review’s letter of disposition of the appeal is postmarked to
the party making the protest of adjournment of the local board
of review or May 31, whichever is later. The written notice
of appeal shall include a petition setting forth the basis of
the appeal and the relief sought. No new grounds in addition
to those set out in the protest to the local board of review
as provided in section 441.37 can be pleaded, but additional
evidence to sustain those grounds may be introduced. The
assessor shall have the same right to appeal to the assessment
appeal board as an individual taxpayer, public body, or other
public officer as provided in section 441.42. An appeal to the
board is a contested case under chapter 17A.
Sec. 59. Section 441.37A, subsection 1, Code 2013, is
amended by adding the following new paragraph:
NEW PARAGRAPH. e. For the assessment year beginning January
1, 2014, the property assessment appeal board may, by rule,
provide for the filing of a notice of appeal and petition
with the secretary of the board by electronic means. All
requirements of this section for an appeal to the board shall
-34-apply to an appeal filed electronically.
Sec. 60. Section 441.37A, subsection 2, Code 2013, is
amended to read as follows:
2. a. A party to the appeal may request a hearing or
the appeal may proceed without a hearing. If a hearing is
requested, the appellant and the local board of review from
which the appeal is taken shall be given at least thirty days’
written notice by the property assessment appeal board of the
date the appeal shall be heard and the local board of review
may be present and participate at such hearing. Notice to all
affected taxing districts shall be deemed to have been given
when written notice is provided to the local board of review.
The requirement of thirty days’ written notice may be waived
by mutual agreement of all parties to the appeal. Failure by
the appellant to appear at the property assessment appeal board
hearing shall be grounds for result in dismissal of the appeal
unless a continuance is granted to the appellant by the board
following a showing of good cause for the appellant’s failure
to appear. If an appeal is dismissed for failure to appear,
the property assessment appeal board shall have no jurisdiction
to consider any subsequent appeal on the appellant’s protest.
b. An Each appeal may be considered by less than a majority
of the one or more members of the board, and the chairperson
of the board may assign members to consider appeals. If a
hearing is requested, it shall be open to the public and shall
be conducted in accordance with the rules of practice and
procedure adopted by the board. The board may provide by rule
for participation in such hearings by telephone or other means
of electronic communication. However, any deliberation of a
the board or of board member members considering the appeal in
reaching a decision on any appeal shall be confidential. A
meeting of the board Any deliberation of the board or of board
members to rule on procedural motions in a pending appeal or to
deliberate on the decision to be reached in an appeal is exempt
from the provisions of chapter 21. The property assessment
appeal board or any member of the board considering the appeal
may require the production of any books, records, papers, or
documents as evidence in any matter pending before the board
that may be material, relevant, or necessary for the making
of a just decision. Any books, records, papers, or documents
produced as evidence shall become part of the record of the
appeal. Any testimony given relating to the appeal shall be
transcribed and made a part of the record of the appeal.
-35- Sec. 61. Section 441.37A, subsection 3, paragraph a, Code
2013, is amended to read as follows:
a. The burden of proof for all appeals before the board
shall be as stated in section 441.21, subsection 3.The board
member members considering the appeal shall determine anew
all questions arising before the local board of review which
relate to the liability of the property to assessment or the
amount thereof. All of the evidence shall be considered and
there shall be no presumption as to the correctness of the
valuation of assessment appealed from. The property assessment
appeal board shall make issue a decision in each appeal filed
with the board. If the appeal is considered by less than a
majority the full membership of the board, the determination
made by that member such members shall be forwarded to the full
board for approval, rejection, or modification. If the initial
determination is rejected by the board, it shall be returned
for reconsideration to the board member members making the
initial determination. Any deliberation of the board regarding
an initial determination shall be confidential.
Sec. 62. 2005 Iowa Acts, chapter 150, section 134, is
amended to read as follows:
SEC. 134. FUTURE REPEAL.
1. The sections of this division of this Act amending
sections 7E.6, 13.7, 428.4, 441.19, 441.35, 441.38, 441.39,
441.43, 441.49, and 445.60, and enacting sections 421.1A and
441.37A, are repealed effective July 1, 2013 2018.
2. The portion of the section of this division of this
Act amending section 441.28 relating only to the property
assessment appeal board is repealed effective July 1, 2013
2018.
3. The repeals provided for in subsections 1 and 2 shall
include all subsequent amendments to such sections relating to
the property assessment appeal board.
Sec. 63. 2008 Iowa Acts, chapter 1191, section 14,
subsection 5, is amended to read as follows:
5. The following are range 5 positions: administrator of
the division of homeland security and emergency management of
the department of public defense, state public defender, drug
policy coordinator, labor commissioner, workers’ compensation
commissioner, director of the department of cultural affairs,
director of the department of elder affairs, director of the
law enforcement academy, members of the property assessment
appeal board, and administrator of the historical division of
-36-the department of cultural affairs.
Sec. 64. EFFECTIVE UPON ENACTMENT. This division of this
Act, being deemed of immediate importance, takes effect upon
enactment.
Sec. 65. APPLICABILITY. Except as otherwise provided in
this division of this Act, this division of this Act applies to
assessment years beginning on or after January 1, 2014.
Sec. 66. APPLICABILITY. The following provision of this
division of this Act applies to appointments to the property
assessment appeal board on or after the effective date of this
division of this Act:
1. The section of this division of this Act amending section
421.1A, subsection 2, paragraph “b”.
Sec. 67. APPLICABILITY. The following provisions of this
division of this Act apply to fiscal years beginning on or
after July 1, 2013:
1. The section of this division of this Act amending section
421.1A, subsection 6.
2. The section of this division of this Act amending 2008
Iowa Acts, chapter 1191, section 14, subsection 5.
Sec. 68. APPLICABILITY. The following provision of this
division of this Act applies on or after the effective date of
this division of this Act:
1. The section of this division of this Act amending 2005
Iowa Acts, chapter 150, section 134.
Sec. 69. RETROACTIVE APPLICABILITY. The following
provision of this division of this Act applies retroactively
to January 1, 2013, for assessment years beginning on or after
that date:
1. The section of this division of this Act amending section
441.37A, subsection 2.
DIVISION VII
earned income tax credit
Sec. 70. Section 422.12B, subsection 1, Code 2013, is
amended to read as follows:
1. a. The taxes imposed under this division less the
credits allowed under section 422.12 shall be reduced by an
earned income credit equal to seven percent the following
percentage of the federal earned income credit provided in
section 32 of the Internal Revenue Code.:
(1) For the tax year beginning in the 2013 calendar year,
fourteen percent.
(2) For tax years beginning on or after January 1, 2014,
-37-fifteen percent.
b. Any credit in excess of the tax liability is refundable.
Sec. 71. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to January 1, 2013, for tax years
beginning on or after that date.
______________________________
PAM JOCHUM
President of the Senate
______________________________
KRAIG PAULSEN
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 295, Eighty-fifth General Assembly.
______________________________
MICHAEL E. MARSHALL
Secretary of the Senate
Approved _______________, 2013
______________________________
TERRY E. BRANSTAD
Governor
-38-