Bill Text: IA HF612 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act modifying the property tax assessment limitations for residential property and agricultural property.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-25 - Introduced, referred to Ways & Means. H.J. 695. [HF612 Detail]
Download: Iowa-2015-HF612-Introduced.html
House File 612 - Introduced HOUSE FILE BY JACOBY A BILL FOR 1 An Act modifying the property tax assessment limitations for 2 residential property and agricultural property. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2362YH (3) 86 md/sc PAG LIN 1 1 Section 1. Section 441.21, subsection 4, Code 2015, is 1 2 amended to read as follows: 1 3 4. For valuations established as of January 1, 1979, 1 4 the percentage of actual value at which agricultural and 1 5 residential property shall be assessed shall be the quotient 1 6 of the dividend and divisor as defined in this section. The 1 7 dividend for each class of property shall be the dividend 1 8 as determined for each class of property for valuations 1 9 established as of January 1, 1978, adjusted by the product 1 10 obtained by multiplying the percentage determined for that 1 11 year by the amount of any additions or deletions to actual 1 12 value, excluding those resulting from the revaluation of 1 13 existing properties, as reported by the assessors on the 1 14 abstracts of assessment for 1978, plus six percent of the 1 15 amount so determined. However, if the difference between the 1 16 dividend so determined for either class of property and the 1 17 dividend for that class of property for valuations established 1 18 as of January 1, 1978, adjusted by the product obtained by 1 19 multiplying the percentage determined for that year by the 1 20 amount of any additions or deletions to actual value, excluding 1 21 those resulting from the revaluation of existing properties, 1 22 as reported by the assessors on the abstracts of assessment 1 23 for 1978, is less than six percent, the 1979 dividend for the 1 24 other class of property shall be the dividend as determined for 1 25 that class of property for valuations established as of January 1 26 1, 1978, adjusted by the product obtained by multiplying 1 27 the percentage determined for that year by the amount of 1 28 any additions or deletions to actual value, excluding those 1 29 resulting from the revaluation of existing properties, as 1 30 reported by the assessors on the abstracts of assessment for 1 31 1978, plus a percentage of the amount so determined which is 1 32 equal to the percentage by which the dividend as determined 1 33 for the other class of property for valuations established 1 34 as of January 1, 1978, adjusted by the product obtained by 1 35 multiplying the percentage determined for that year by the 2 1 amount of any additions or deletions to actual value, excluding 2 2 those resulting from the revaluation of existing properties, 2 3 as reported by the assessors on the abstracts of assessment 2 4 for 1978, is increased in arriving at the 1979 dividend for 2 5 the other class of property. The divisor for each class of 2 6 property shall be the total actual value of all such property 2 7 in the state in the preceding year, as reported by the 2 8 assessors on the abstracts of assessment submitted for 1978, 2 9 plus the amount of value added to said total actual value by 2 10 the revaluation of existing properties in 1979 as equalized 2 11 by the director of revenue pursuant to section 441.49. The 2 12 director shall utilize information reported on abstracts of 2 13 assessment submitted pursuant to section 441.45 in determining 2 14 such percentage. For valuations established as of January 1, 2 15 1980, and each assessment year thereafter beginning before 2 16 January 1, 2013, the percentage of actual value as equalized 2 17 by the director of revenue as provided in section 441.49 at 2 18 which agricultural and residential property shall be assessed 2 19 shall be calculated in accordance with the methods provided 2 20 in this subsection, including the limitation of increases in 2 21 agricultural and residential assessed values to the percentage 2 22 increase of the other class of property if the other class 2 23 increases less than the allowable limit adjusted to include 2 24 the applicable and current values as equalized by the director 2 25 of revenue, except that any references to six percent in this 2 26 subsection shall be four percent. For valuations established 2 27 as of January 1, 2013, and each assessment year thereafter 2 28 beginning before January 1, 2016, the percentage of actual 2 29 value as equalized by the director of revenue as provided in 2 30 section 441.49 at which agricultural and residential property 2 31 shall be assessed shall be calculated in accordance with the 2 32 methods provided in this subsection, including the limitation 2 33 of increases in agricultural and residential assessed values to 2 34 the percentage increase of the other class of property if the 2 35 other class increases less than the allowable limit adjusted to 3 1 include the applicable and current values as equalized by the 3 2 director of revenue, except that any references to six percent 3 3 in this subsection shall be three percent. For valuations 3 4 established as of January 1, 2016, and each assessment year 3 5 thereafter, the percentage of actual value as equalized by 3 6 the director of revenue as provided in section 441.49 at 3 7 which agricultural and residential property shall be assessed 3 8 shall be calculated in accordance with the methods provided 3 9 in this subsection, excluding the limitation of increases in 3 10 agricultural and residential assessed values to the percentage 3 11 increase of the other class of property if the other class 3 12 increases less than the allowable limit adjusted to include 3 13 the applicable and current values as equalized by the director 3 14 of revenue, except that any references to six percent in this 3 15 subsection shall be three percent. 3 16 EXPLANATION 3 17 The inclusion of this explanation does not constitute agreement with 3 18 the explanation's substance by the members of the general assembly. 3 19 Current Code section 441.21 imposes limitations on the 3 20 annual increase in statewide actual value of residential 3 21 property and agricultural property due to revaluation. 3 22 Accordingly, the assessed value subject to taxation is a 3 23 percentage of the assessed value as a result of those statewide 3 24 limitations on annual growth. 3 25 As part of the assessment limitation calculation for 3 26 residential property and agricultural property, Code section 3 27 441.21 provides that if the increase due to revaluation for 3 28 either class of property is less than 3 percent, the annual 3 29 increase in each class of property is limited to the smaller 3 30 of the two increases in either class of property. This bill 3 31 removes that provision for the calculation of assessment 3 32 limitations for assessment years beginning on or after January 3 33 1, 2016. LSB 2362YH (3) 86 md/sc
