Bill Text: IA SSB3181 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act placing assessment limitations for property tax purposes on commercial child care facilities, and including effective date, applicability, and retroactive applicability provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-02-19 - Subcommittee: Bousselot, Brown, and Petersen. [SSB3181 Detail]
Download: Iowa-2023-SSB3181-Introduced.html
Senate
Study
Bill
3181
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
placing
assessment
limitations
for
property
tax
1
purposes
on
commercial
child
care
facilities,
and
including
2
effective
date,
applicability,
and
retroactive
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
441.21,
subsection
5,
paragraph
b,
1
subparagraph
(2),
unnumbered
paragraph
1,
Code
2024,
is
amended
2
to
read
as
follows:
3
For
Except
as
prescribed
for
property
subject
to
4
subparagraph
(3),
for
valuations
established
for
the
assessment
5
year
beginning
January
1,
2022,
and
each
assessment
year
6
thereafter,
the
portion
of
actual
value
at
which
each
property
7
unit
of
commercial
property
shall
be
assessed
shall
be
the
sum
8
of
the
following:
9
Sec.
2.
Section
441.21,
subsection
5,
paragraph
b,
Code
10
2024,
is
amended
by
adding
the
following
new
subparagraph:
11
NEW
SUBPARAGRAPH
.
(3)
(a)
For
valuations
established
12
for
the
assessment
year
beginning
January
1,
2024,
and
each
13
assessment
year
thereafter,
the
portion
of
actual
value
at
14
which
each
portion
of
a
property
unit
of
commercial
property
15
that
is
primarily
used
as
a
child
care
facility
as
defined
16
in
section
237A.1,
and
for
which
an
application
has
been
17
allowed
under
this
subparagraph,
shall
be
assessed
at
an
amount
18
equal
to
the
product
of
the
assessment
limitation
percentage
19
applicable
to
residential
property
under
subsection
4
for
that
20
assessment
year
multiplied
by
the
actual
value
of
the
property.
21
(b)
Applications
to
qualify
a
child
care
facility
for
the
22
assessment
limitation
allowed
under
this
subparagraph
shall
be
23
filed
with
the
assessor
not
later
than
July
1
of
the
assessment
24
year
for
which
the
person
is
requesting
the
assessment
25
limitation.
The
application
shall
be
on
forms
prescribed
by
26
the
department
of
revenue
and
must
include
all
of
the
following
27
information:
28
(i)
A
description
of
the
property,
including
the
property’s
29
location.
30
(ii)
A
copy
of
the
license
to
operate
as
a
child
care
31
facility
issued
by
the
department
of
health
and
human
services,
32
or
other
proof
of
eligibility
as
set
forth
by
the
department
33
of
revenue
by
rule.
34
(iii)
Any
other
information
as
required
by
the
department
35
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of
revenue.
1
(c)
Upon
allowance
of
the
application,
the
assessment
2
limitation
shall
be
applied
on
the
portion
of
the
property
3
unit
of
commercial
property
that
is
primarily
used
as
a
child
4
care
facility
for
successive
years
without
further
filing
as
5
long
as
the
property
continues
to
be
classified
as
commercial
6
property
and
is
used
for
the
purposes
specified
in
the
original
7
application
for
assessment
limitation.
8
(d)
No
later
than
July
6
of
each
year,
the
assessor
shall
9
remit
the
applications
for
assessment
limitation
to
the
county
10
auditor
with
the
assessor’s
recommendation
for
allowance
or
11
disallowance
of
the
assessment
limitation.
If
the
assessor
12
recommends
disallowance,
the
assessor
shall
submit
the
reasons
13
for
the
recommendation
in
writing
to
the
county
auditor.
14
(e)
No
later
than
July
15
of
each
year,
the
county
auditor
15
shall
forward
the
applications
for
assessment
limitation
to
16
the
board
of
supervisors.
The
board
shall
determine
the
17
eligibility
for
each
application
on
or
before
September
1
of
18
each
year.
19
(i)
If
the
board
disallows
a
claim,
the
board
shall
send
20
written
notice
by
mail
to
the
applicant
at
the
applicant’s
21
last
known
address.
The
notice
shall
state
the
reasons
for
22
disallowing
the
application
and
shall
state
the
applicant’s
23
right
to
appeal
the
board’s
action
to
the
district
court.
An
24
applicant
may
appeal
the
board’s
decision
to
the
district
court
25
of
the
county
in
which
the
property
is
located
within
thirty
26
days
of
the
date
of
the
notice
of
disallowance.
27
(ii)
No
later
than
October
1
of
each
year,
the
board
of
28
supervisors
shall
certify
all
allowed
assessment
limitations
29
received
for
that
year
with
the
county
auditor.
30
(f)
If
a
property
that
has
been
granted
an
assessment
31
limitation
ceases
to
be
used
as
a
child
care
facility,
the
32
owner
of
the
child
care
facility
shall
give
written
notice
to
33
the
assessor
by
the
July
1
following
the
date
the
property
34
ceased
to
be
used
as
a
child
care
facility.
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(g)
(i)
If
the
board
determines
at
any
time
within
1
thirty-six
months
of
allowing
an
assessment
limitation
that
the
2
assessment
limitation
was
allowed
in
error,
the
board
shall
3
notify
the
property
owner
by
mail
and
conduct
a
hearing
on
the
4
matter.
5
(ii)
If,
after
a
hearing
required
by
subparagraph
6
subdivision
(i),
the
board
determines
the
assessment
limitation
7
was
allowed
in
error
and
the
assessment
limitation
should
be
8
disallowed,
the
treasurer
shall
collect
from
the
property
owner
9
the
amount
of
tax
that
would
have
been
assessed
on
the
property
10
if
there
had
been
no
allowance
of
the
assessment
limitation
11
under
this
subparagraph
(3).
The
amount
due
shall
become
a
12
lien
on
the
property
that
received
the
assessment
limitation
13
and
shall
be
collected
by
the
county
treasurer
in
the
same
14
manner
as
other
taxes.
15
(h)
The
assessor
shall
retain
a
permanent
file
of
properties
16
that
have
approved
assessment
limitations
pursuant
to
this
17
subparagraph.
If
the
assessor
receives
notice
of
a
title
18
transfer
pursuant
to
subparagraph
division
(i),
then
the
19
assessor
shall
file
a
notice
of
transfer
of
property.
20
(i)
The
county
recorder
shall
give
notice
to
the
assessor
21
of
each
transfer
of
title
filed
in
the
recorder’s
office
for
a
22
property
which
has
an
allowed
assessment
limitation
pursuant
to
23
this
subparagraph.
The
notice
from
the
county
recorder
shall
24
describe
the
property
transferred,
the
name
of
the
person
who
25
transferred
title,
and
the
name
of
the
person
to
whom
title
is
26
transferred.
27
(j)
The
department
of
revenue
shall
adopt
rules
to
implement
28
and
administer
this
subparagraph.
29
Sec.
3.
Section
441.21,
subsection
5,
paragraph
e,
30
subparagraphs
(1)
and
(3),
Code
2024,
are
amended
to
read
as
31
follows:
32
(1)
For
the
fiscal
year
beginning
July
1,
2023,
there
33
is
appropriated
from
the
general
fund
of
the
state
to
the
34
department
of
revenue
the
sum
of
one
hundred
twenty-two
million
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three
hundred
fifty
thousand
dollars
to
be
used
for
payments
1
under
this
paragraph
calculated
as
a
result
of
the
assessment
2
limitations
imposed
under
paragraph
“b”
,
subparagraph
(2),
3
subparagraph
division
(a),
and
paragraph
“c”
,
subparagraph
(2),
4
subparagraph
division
(a).
For
each
fiscal
year
beginning
on
5
or
after
July
1,
2024,
there
is
appropriated
from
the
general
6
fund
of
the
state
to
the
department
of
revenue
the
sum
of
one
7
hundred
twenty-five
million
dollars
to
be
used
for
payments
8
under
this
paragraph
calculated
as
a
result
of
the
assessment
9
limitations
imposed
under
paragraph
“b”
,
subparagraph
(2),
10
subparagraph
division
(a),
and
paragraph
“c”
,
subparagraph
(2),
11
subparagraph
division
(a)
,
and
paragraph
“b”
,
subparagraph
(3),
12
for
the
portion
of
the
actual
value
of
the
property
unit
equal
13
to
or
less
than
one
hundred
fifty
thousand
dollars
.
14
(3)
On
or
before
July
1
of
each
fiscal
year,
the
assessor
15
shall
report
to
the
county
auditor
that
portion
of
the
total
16
actual
value
of
all
commercial
property
and
industrial
property
17
in
the
county
that
is
subject
to
the
assessment
limitations
18
imposed
under
paragraph
“b”
,
subparagraph
(2),
subparagraph
19
division
(a),
and
paragraph
“c”
,
subparagraph
(2),
subparagraph
20
division
(a),
and
paragraph
“b”
,
subparagraph
(3),
for
the
21
portion
of
the
actual
value
of
the
property
unit
equal
to
22
or
less
than
one
hundred
fifty
thousand
dollars,
for
the
23
assessment
year
used
to
calculate
the
taxes
due
and
payable
in
24
that
fiscal
year.
25
Sec.
4.
Section
441.21,
subsection
5,
paragraph
e,
26
subparagraph
(4),
subparagraph
division
(a),
Code
2024,
is
27
amended
to
read
as
follows:
28
(a)
The
product
of
the
portion
of
the
total
actual
value
29
of
all
commercial
property,
industrial
property,
and
property
30
valued
by
the
department
under
chapter
434
in
the
county
31
that
is
subject
to
the
assessment
limitations
imposed
under
32
paragraph
“b”
,
subparagraph
(2),
subparagraph
division
(a)
;
,
33
and
paragraph
“c”
,
subparagraph
(2),
subparagraph
division
(a)
;
34
and
paragraph
“b”
,
subparagraph
(3),
for
the
portion
of
the
35
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actual
value
of
the
property
unit
equal
to
or
less
than
one
1
hundred
fifty
thousand
dollars
,
for
the
applicable
assessment
2
year
used
to
calculate
taxes
which
are
due
and
payable
in
the
3
applicable
fiscal
year
multiplied
by
the
difference,
stated
4
as
a
percentage,
between
ninety
percent
and
the
assessment
5
limitation
percentage
applicable
to
residential
property
under
6
subsection
4
for
the
applicable
assessment
year.
7
Sec.
5.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
8
importance,
takes
effect
upon
enactment.
9
Sec.
6.
APPLICABILITY.
The
following
apply
to
fiscal
years
10
beginning
on
or
after
July
1,
2025,
for
payments
pursuant
to
11
section
441.21,
subsection
5,
paragraph
“e”:
12
1.
The
section
of
this
Act
amending
section
441.21,
13
subsection
5,
paragraph
“e”,
subparagraphs
(1)
and
(3).
14
2.
The
section
of
this
Act
amending
section
441.21,
15
subsection
5,
paragraph
“e”,
subparagraph
(4),
subparagraph
16
division
(a).
17
Sec.
7.
RETROACTIVE
APPLICABILITY.
The
following
apply
18
retroactively
to
assessment
years
beginning
on
or
after
January
19
1,
2024:
20
1.
The
section
of
this
Act
amending
section
441.21,
21
subsection
5,
paragraph
“b”,
subparagraph
(2),
unnumbered
22
paragraph
1.
23
2.
The
section
of
this
Act
enacting
section
441.21,
24
subsection
5,
paragraph
“b”,
subparagraph
(3).
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
assessment
limitations
for
property
29
taxation
purposes
for
commercial
child
care
facilities,
30
and
includes
effective
date,
applicability,
and
retroactive
31
applicability
provisions.
32
Code
section
441.21(5)
determines
the
amount
of
actual
value
33
of
commercial
property
that
is
subject
to
property
tax.
The
34
amount
is
the
sum
of
the
residential
assessment
limitation
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to
the
portion
of
the
property’s
value
that
does
not
exceed
1
$150,000
plus
90
percent
of
the
property’s
value
in
excess
of
2
$150,000.
3
The
bill
excludes
property
that
is
primarily
used
as
a
child
4
care
facility
from
the
calculation
of
the
actual
value
of
the
5
property.
The
bill
instead
specifies
that
for
assessment
years
6
beginning
on
or
after
January
1,
2024,
the
amount
of
actual
7
value
used
as
child
care
facilities
that
is
subject
to
tax
is
8
equal
to
the
product
of
the
assessment
limitation
percentage
9
applicable
to
residential
property
multiplied
by
the
actual
10
value
of
the
property
provided
that
the
property
owner
has
11
applied
for
the
assessment
limitation
and
the
county
board
of
12
supervisors
has
allowed
such
an
assessment
limitation.
13
The
bill
establishes
application
procedures,
approval
14
procedures,
and
recordkeeping
procedures
for
the
assessment
15
limitation.
16
The
bill
makes
conforming
changes
to
reflect
the
child
care
17
facility
assessment
limitation.
18
The
bill
takes
effect
upon
enactment.
19
The
bill
applies
retroactively
to
assessment
years
beginning
20
on
or
after
January
1,
2024,
and
applies
to
payments
to
local
21
governments
for
fiscal
years
beginning
on
or
after
July
1,
22
2025.
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