Bill Text: IA HF671 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act relating to property taxation and school financing by increasing the regular program foundation base, establishing a method for determining property assessment limitations, and including retroactive and other applicability provisions. (Formerly HF 9)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2012-01-12 - Subcommittee, Sands, Helland, and Jacoby. H.J. 79. [HF671 Detail]
Download: Iowa-2011-HF671-Introduced.html
House
File
671
-
Introduced
HOUSE
FILE
671
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
9)
A
BILL
FOR
An
Act
relating
to
property
taxation
and
school
financing
by
1
increasing
the
regular
program
foundation
base,
establishing
2
a
method
for
determining
property
assessment
limitations,
3
and
including
retroactive
and
other
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
EDUCATION
FINANCE
2
Section
1.
Section
257.1,
subsection
2,
paragraph
b,
Code
3
2011,
is
amended
by
striking
the
paragraph
and
inserting
in
4
lieu
thereof
the
following:
5
b.
(1)
The
regular
program
foundation
base
per
pupil
is
the
6
following:
7
(a)
For
the
budget
year
commencing
July
1,
2011,
the
8
regular
program
foundation
base
per
pupil
is
eighty-seven
and
9
five-tenths
percent
of
the
regular
program
state
cost
per
10
pupil.
11
(b)
For
the
budget
year
commencing
July
1,
2012,
the
12
regular
program
foundation
base
per
pupil
is
eighty-nine
and
13
twenty-eight
hundredths
percent
of
the
regular
program
state
14
cost
per
pupil.
15
(c)
For
the
budget
year
commencing
July
1,
2013,
the
16
regular
program
foundation
base
per
pupil
is
ninety-one
and
six
17
hundredths
percent
of
the
regular
program
state
cost
per
pupil.
18
(d)
For
the
budget
year
commencing
July
1,
2014,
the
regular
19
program
foundation
base
per
pupil
is
ninety-two
and
eighty-four
20
hundredths
percent
of
the
regular
program
state
cost
per
pupil.
21
(e)
For
the
budget
year
commencing
July
1,
2015,
the
regular
22
program
foundation
base
per
pupil
is
ninety-four
and
sixty-two
23
hundredths
percent
of
the
regular
program
state
cost
per
pupil.
24
(f)
For
the
budget
year
commencing
July
1,
2016,
the
regular
25
program
foundation
base
per
pupil
is
ninety-six
and
forty
26
hundredths
percent
of
the
regular
program
state
cost
per
pupil.
27
(g)
For
the
budget
year
commencing
July
1,
2017,
the
regular
28
program
foundation
base
per
pupil
is
ninety-eight
and
eighteen
29
hundredths
percent
of
the
regular
program
state
cost
per
pupil.
30
(h)
For
the
budget
year
commencing
July
1,
2018,
and
31
succeeding
budget
years,
the
regular
program
foundation
base
32
per
pupil
is
one
hundred
percent
of
the
regular
program
state
33
cost
per
pupil.
34
(2)
For
each
budget
year,
the
special
education
support
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services
foundation
base
is
seventy-nine
percent
of
the
special
1
education
support
services
state
cost
per
pupil.
The
combined
2
foundation
base
is
the
sum
of
the
regular
program
foundation
3
base,
the
special
education
support
services
foundation
base,
4
the
total
teacher
salary
supplement
district
cost,
the
total
5
professional
development
supplement
district
cost,
the
total
6
early
intervention
supplement
district
cost,
the
total
area
7
education
agency
teacher
salary
supplement
district
cost,
8
and
the
total
area
education
agency
professional
development
9
supplement
district
cost.
10
DIVISION
II
11
PROPERTY
ASSESSMENT
LIMITATION
12
Sec.
2.
Section
441.21,
subsections
4
and
5,
Code
2011,
are
13
amended
to
read
as
follows:
14
4.
For
valuations
established
as
of
January
1,
1979,
15
the
percentage
of
actual
value
at
which
agricultural
and
16
residential
property
shall
be
assessed
shall
be
the
quotient
17
of
the
dividend
and
divisor
as
defined
in
this
section
.
The
18
dividend
for
each
class
of
property
shall
be
the
dividend
19
as
determined
for
each
class
of
property
for
valuations
20
established
as
of
January
1,
1978,
adjusted
by
the
product
21
obtained
by
multiplying
the
percentage
determined
for
that
22
year
by
the
amount
of
any
additions
or
deletions
to
actual
23
value,
excluding
those
resulting
from
the
revaluation
of
24
existing
properties,
as
reported
by
the
assessors
on
the
25
abstracts
of
assessment
for
1978,
plus
six
percent
of
the
26
amount
so
determined.
However,
if
the
difference
between
the
27
dividend
so
determined
for
either
class
of
property
and
the
28
dividend
for
that
class
of
property
for
valuations
established
29
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
30
multiplying
the
percentage
determined
for
that
year
by
the
31
amount
of
any
additions
or
deletions
to
actual
value,
excluding
32
those
resulting
from
the
revaluation
of
existing
properties,
33
as
reported
by
the
assessors
on
the
abstracts
of
assessment
34
for
1978,
is
less
than
six
percent,
the
1979
dividend
for
the
35
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other
class
of
property
shall
be
the
dividend
as
determined
for
1
that
class
of
property
for
valuations
established
as
of
January
2
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
3
the
percentage
determined
for
that
year
by
the
amount
of
4
any
additions
or
deletions
to
actual
value,
excluding
those
5
resulting
from
the
revaluation
of
existing
properties,
as
6
reported
by
the
assessors
on
the
abstracts
of
assessment
for
7
1978,
plus
a
percentage
of
the
amount
so
determined
which
is
8
equal
to
the
percentage
by
which
the
dividend
as
determined
9
for
the
other
class
of
property
for
valuations
established
10
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
11
multiplying
the
percentage
determined
for
that
year
by
the
12
amount
of
any
additions
or
deletions
to
actual
value,
excluding
13
those
resulting
from
the
revaluation
of
existing
properties,
14
as
reported
by
the
assessors
on
the
abstracts
of
assessment
15
for
1978,
is
increased
in
arriving
at
the
1979
dividend
for
16
the
other
class
of
property.
The
divisor
for
each
class
of
17
property
shall
be
the
total
actual
value
of
all
such
property
18
in
the
state
in
the
preceding
year,
as
reported
by
the
19
assessors
on
the
abstracts
of
assessment
submitted
for
1978,
20
plus
the
amount
of
value
added
to
said
total
actual
value
by
21
the
revaluation
of
existing
properties
in
1979
as
equalized
22
by
the
director
of
revenue
pursuant
to
section
441.49
.
The
23
director
shall
utilize
information
reported
on
abstracts
of
24
assessment
submitted
pursuant
to
section
441.45
in
determining
25
such
percentage.
For
valuations
established
as
of
January
26
1,
1980,
and
each
year
thereafter,
the
percentage
of
actual
27
value
as
equalized
by
the
director
of
revenue
as
provided
28
in
section
441.49
at
which
agricultural
and
residential
29
property
shall
be
assessed
shall
be
calculated
in
accordance
30
with
the
methods
provided
herein
including
the
limitation
of
31
increases
in
agricultural
and
residential
assessed
values
to
32
the
percentage
increase
of
the
other
class
of
property
if
the
33
other
class
increases
less
than
the
allowable
limit
adjusted
34
to
include
the
applicable
and
current
values
as
equalized
by
35
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the
director
of
revenue
in
this
subsection
,
except
that
any
1
references
to
six
percent
in
this
subsection
shall
be
four
2
percent.
For
valuations
established
for
the
assessment
year
3
beginning
January
1,
2011,
and
each
assessment
year
thereafter,
4
the
percentage
of
actual
value
as
equalized
by
the
director
of
5
revenue
as
provided
in
section
441.49
at
which
agricultural
6
and
residential
property
shall
be
assessed
shall
be
calculated
7
in
accordance
with
the
methods
provided
in
this
subsection
and
8
subsection
5A,
except
that
any
references
to
six
percent
in
9
this
subsection
shall
be
four
percent.
10
5.
For
valuations
established
as
of
January
1,
1979,
11
commercial
property
and
industrial
property,
excluding
12
properties
referred
to
in
section
427A.1,
subsection
8
,
shall
13
be
assessed
as
a
percentage
of
the
actual
value
of
each
class
14
of
property.
The
percentage
shall
be
determined
for
each
15
class
of
property
by
the
director
of
revenue
for
the
state
in
16
accordance
with
the
provisions
of
this
section
.
For
valuations
17
established
as
of
January
1,
1979,
the
percentage
shall
be
18
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
19
section
.
The
dividend
for
each
class
of
property
shall
be
the
20
total
actual
valuation
for
each
class
of
property
established
21
for
1978,
plus
six
percent
of
the
amount
so
determined.
The
22
divisor
for
each
class
of
property
shall
be
the
valuation
23
for
each
class
of
property
established
for
1978,
as
reported
24
by
the
assessors
on
the
abstracts
of
assessment
for
1978,
25
plus
the
amount
of
value
added
to
the
total
actual
value
by
26
the
revaluation
of
existing
properties
in
1979
as
equalized
27
by
the
director
of
revenue
pursuant
to
section
441.49
.
For
28
valuations
established
as
of
January
1,
1979,
property
valued
29
by
the
department
of
revenue
pursuant
to
chapters
428
,
433
,
30
437
,
and
438
shall
be
considered
as
one
class
of
property
and
31
shall
be
assessed
as
a
percentage
of
its
actual
value.
The
32
percentage
shall
be
determined
by
the
director
of
revenue
in
33
accordance
with
the
provisions
of
this
section
.
For
valuations
34
established
as
of
January
1,
1979,
the
percentage
shall
be
35
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the
quotient
of
the
dividend
and
divisor
as
defined
in
this
1
section
.
The
dividend
shall
be
the
total
actual
valuation
2
established
for
1978
by
the
department
of
revenue,
plus
ten
3
percent
of
the
amount
so
determined.
The
divisor
for
property
4
valued
by
the
department
of
revenue
pursuant
to
chapters
428
,
5
433
,
437
,
and
438
shall
be
the
valuation
established
for
1978,
6
plus
the
amount
of
value
added
to
the
total
actual
value
by
7
the
revaluation
of
the
property
by
the
department
of
revenue
8
as
of
January
1,
1979.
For
valuations
established
as
of
9
January
1,
1980,
commercial
property
and
industrial
property,
10
excluding
properties
referred
to
in
section
427A.1,
subsection
11
8
,
shall
be
assessed
at
a
percentage
of
the
actual
value
of
12
each
class
of
property.
The
percentage
shall
be
determined
13
for
each
class
of
property
by
the
director
of
revenue
for
the
14
state
in
accordance
with
the
provisions
of
this
section
.
For
15
valuations
established
as
of
January
1,
1980,
the
percentage
16
shall
be
the
quotient
of
the
dividend
and
divisor
as
defined
in
17
this
section
.
The
dividend
for
each
class
of
property
shall
18
be
the
dividend
as
determined
for
each
class
of
property
for
19
valuations
established
as
of
January
1,
1979,
adjusted
by
the
20
product
obtained
by
multiplying
the
percentage
determined
21
for
that
year
by
the
amount
of
any
additions
or
deletions
to
22
actual
value,
excluding
those
resulting
from
the
revaluation
23
of
existing
properties,
as
reported
by
the
assessors
on
the
24
abstracts
of
assessment
for
1979,
plus
four
percent
of
the
25
amount
so
determined.
The
divisor
for
each
class
of
property
26
shall
be
the
total
actual
value
of
all
such
property
in
1979,
27
as
equalized
by
the
director
of
revenue
pursuant
to
section
28
441.49
,
plus
the
amount
of
value
added
to
the
total
actual
29
value
by
the
revaluation
of
existing
properties
in
1980.
The
30
director
shall
utilize
information
reported
on
the
abstracts
of
31
assessment
submitted
pursuant
to
section
441.45
in
determining
32
such
percentage.
For
valuations
established
as
of
January
1,
33
1980,
property
valued
by
the
department
of
revenue
pursuant
34
to
chapters
428
,
433
,
437
,
and
438
shall
be
assessed
at
a
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percentage
of
its
actual
value.
The
percentage
shall
be
1
determined
by
the
director
of
revenue
in
accordance
with
the
2
provisions
of
this
section
.
For
valuations
established
as
of
3
January
1,
1980,
the
percentage
shall
be
the
quotient
of
the
4
dividend
and
divisor
as
defined
in
this
section
.
The
dividend
5
shall
be
the
total
actual
valuation
established
for
1979
by
6
the
department
of
revenue,
plus
eight
percent
of
the
amount
so
7
determined.
The
divisor
for
property
valued
by
the
department
8
of
revenue
pursuant
to
chapters
428
,
433
,
437
,
and
438
shall
9
be
the
valuation
established
for
1979,
plus
the
amount
of
10
value
added
to
the
total
actual
value
by
the
revaluation
of
11
the
property
by
the
department
of
revenue
as
of
January
1,
12
1980.
For
valuations
established
as
of
January
1,
1981,
13
and
each
year
thereafter,
the
percentage
of
actual
value
as
14
equalized
by
the
director
of
revenue
as
provided
in
section
15
441.49
at
which
commercial
property
and
industrial
property,
16
excluding
properties
referred
to
in
section
427A.1,
subsection
17
8
,
shall
be
assessed
shall
be
calculated
in
accordance
with
18
the
methods
provided
herein
in
this
subsection
,
except
that
19
any
references
to
six
percent
in
this
subsection
shall
be
four
20
percent.
For
valuations
established
as
of
January
1,
1981,
21
and
each
year
thereafter,
the
percentage
of
actual
value
at
22
which
property
valued
by
the
department
of
revenue
pursuant
23
to
chapters
428
,
433
,
437
,
and
438
shall
be
assessed
shall
be
24
calculated
in
accordance
with
the
methods
provided
herein,
25
except
that
any
references
to
ten
percent
in
this
subsection
26
shall
be
eight
percent.
Beginning
with
valuations
established
27
as
of
January
1,
1979,
and
each
year
thereafter,
property
28
valued
by
the
department
of
revenue
pursuant
to
chapter
434
29
shall
also
be
assessed
at
a
percentage
of
its
actual
value
30
which
percentage
shall
be
equal
to
the
percentage
determined
31
by
the
director
of
revenue
for
commercial
property,
industrial
32
property,
or
property
valued
by
the
department
of
revenue
33
pursuant
to
chapters
428
,
433
,
437
,
and
438
,
whichever
is
34
lowest.
For
valuations
established
for
the
assessment
year
35
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671
beginning
January
1,
2011,
and
each
assessment
year
thereafter,
1
the
percentage
of
actual
value
as
equalized
by
the
director
of
2
revenue
as
provided
in
section
441.49
at
which
commercial
and
3
industrial
property
shall
be
assessed
shall
be
calculated
in
4
accordance
with
the
methods
provided
in
this
subsection
and
5
subsection
5A,
except
that
any
references
to
six
percent
in
6
this
subsection
shall
be
four
percent.
7
Sec.
3.
Section
441.21,
Code
2011,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
5A.
Notwithstanding
the
limitation
10
of
increases
for
agricultural
and
residential
property
in
11
subsection
4
and
the
limitation
of
increases
for
commercial
and
12
industrial
property
in
subsection
5,
for
valuations
established
13
for
the
assessment
year
beginning
January
1,
2011,
and
each
14
assessment
year
thereafter,
for
residential,
agricultural,
and
15
commercial
property,
the
assessed
values
of
these
three
classes
16
of
property
shall
be
limited
to
the
percentage
increase
of
that
17
class
of
property
that
is
the
lowest
percentage
increase
under
18
the
allowable
limit
adjusted
to
include
the
applicable
and
19
current
values
as
equalized
by
the
director
of
revenue.
The
20
lowest
percentage
increase
determined
under
this
subsection
21
shall
also
be
applied
to
industrial
property
in
the
same
manner
22
it
is
applied
to
the
other
three
classes
of
property.
23
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
division
of
this
24
Act
applies
retroactively
to
January
1,
2011,
for
assessment
25
years
beginning
on
or
after
that
date.
26
EXPLANATION
27
This
bill
makes
changes
relating
to
property
taxation
and
28
school
financing.
29
Division
I
of
the
bill
provides
for
an
increase
in
the
30
regular
program
foundation
base
under
the
state
school
31
foundation
program.
The
foundation
base
is
the
specified
32
percentage
of
the
state
cost
per
pupil
calculation
which
is
33
paid
as
state
aid
to
school
districts,
above
and
beyond
the
34
uniform
property
tax
levy
imposed
in
Code
section
257.3.
35
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Beginning
with
the
budget
year
commencing
July
1,
2012,
the
1
increase
is
phased
in
over
a
seven-year
period
in
equal
annual
2
increments,
from
the
current
foundation
base
level
of
87.5
3
percent
to
the
level
of
100
percent.
4
Division
II
of
the
bill
ties
together
the
assessment
5
limitations
of
residential,
agricultural,
and
commercial
6
property
by
limiting
the
percentage
increase
in
all
of
those
7
classes
of
property
to
the
percentage
increase
of
that
class
8
of
property
that
is
the
lowest
percentage
increase
under
the
9
allowable
(4
percent)
limit.
The
division
also
provides
that
10
the
lowest
percentage
increase
shall
be
applied
to
industrial
11
property
in
the
same
manner
that
it
is
applied
to
the
other
12
three
classes
of
property.
13
Division
II
of
the
bill
applies
retroactively
to
January
1,
14
2011,
for
assessment
years
beginning
on
or
after
that
date.
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