Iowa-2015-HF612-Introduced
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:
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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.
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