Bill Text: IA HSB103 | 2017-2018 | 87th General Assembly | Introduced


Bill Title: A bill for an act relating to the assessment of certain subdivided real property and including applicability provisions.

Spectrum: Partisan Bill (? 1-0)

Status: (N/A - Dead) 2017-02-27 - Committee report, recommending passage. H.J. 471. [HSB103 Detail]

Download: Iowa-2017-HSB103-Introduced.html
House Study Bill 103 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON COWNIE) A BILL FOR An Act relating to the assessment of certain subdivided real 1 property and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2238HC (2) 87 md/jh/sc
H.F. _____ Section 1. Section 405.1, Code 2017, is amended to read as 1 follows: 2 405.1 Housing development —— tax status —— limitation . 3 1. a. The board of supervisors of a county may adopt 4 an ordinance providing that property Property acquired and 5 subdivided for development of housing on or after January 6 1, 2011, shall continue to be assessed for taxation in the 7 manner that it was prior to the acquisition for housing. Each 8 lot shall continue to be taxed in the manner it was prior 9 to its acquisition for housing until the lot is sold for 10 construction or occupancy of housing or five years from the 11 date of subdivision, whichever is shorter . Upon the sale or 12 the expiration of the five-year period , the property shall be 13 assessed for taxation as residential , multiresidential, or 14 commercial multifamily property, whichever is applicable. 15 b. Ordinances adopted under this section , to the extent 16 such ordinances affect the assessment of property subdivided 17 for development of housing on or after January 1, 2004, but 18 before January 1, 2011, shall remain in effect or otherwise 19 be made effective and such ordinances adopted under section 20 405.1, subsection 1 , Code 2011, shall be extended to apply 21 the ordinances to the period of time ending ten years from 22 the date of subdivision, and ordinances adopted under section 23 405.1, subsection 2 , Code 2011, shall be extended to apply the 24 ordinances to the period of time ending eight years from the 25 date of subdivision. 26 2. On or after July 27, 2011, the board of supervisors 27 of a county may amend an ordinance adopted or otherwise made 28 effective under subsection 1 to extend the period of time 29 established under subsection 1 to apply the ordinance to a 30 period of time not to exceed five years beyond the end of the 31 period of time established under subsection 1 . An extension 32 of an ordinance under this subsection may apply to all or 33 a portion of the property that was subject to the original 34 ordinance. 35 -1- LSB 2238HC (2) 87 md/jh/sc 1/ 4
H.F. _____ 3. A city council may adopt an ordinance affecting 1 that portion of the applicable property located within the 2 incorporated area of the city, effectuating an extension of 3 a county ordinance otherwise eligible to be extended under 4 subsection 2 and not previously extended by the board of 5 supervisors. An ordinance by a city council providing for 6 an extension under this subsection shall be subject to the 7 limitations of subsection 2 . 8 Sec. 2. Section 441.72, Code 2017, is amended to read as 9 follows: 10 441.72 Assessment of platted lots. 11 1. Except as provided in subsection 2 , when When a 12 subdivision plat is recorded pursuant to chapter 354 , the 13 individual lots within the subdivision plat shall not be 14 assessed in excess of the total assessment of the land as 15 acreage or unimproved property for five years after the 16 recording of the plat or until the lot is actually improved 17 with permanent construction , whichever occurs first . When an 18 individual lot has been improved with permanent construction, 19 the lot shall be assessed for taxation purposes as provided in 20 chapter 428 and this chapter . 21 2. For subdivision plats recorded pursuant to chapter 22 354 on or after January 1, 2004, but before January 1, 2011, 23 the individual lots within the subdivision plat shall not 24 be assessed in excess of the total assessment of the land 25 as acreage or unimproved property for eight years after the 26 recording of the plat or until the lot is actually improved 27 with permanent construction, whichever occurs first. When an 28 individual lot has been improved with permanent construction, 29 the lot shall be assessed for taxation purposes as provided in 30 chapter 428 and this chapter . 31 3. 2. This section does not apply to special assessment 32 levies. 33 Sec. 3. IMPLEMENTATION. 34 1. This Act shall not be construed to require the refund 35 -2- LSB 2238HC (2) 87 md/jh/sc 2/ 4
H.F. _____ or modification of property taxes that are attributable to 1 assessment years beginning before January 1, 2018, or the 2 adjustment of property assessments for assessment years 3 beginning before January 1, 2018. 4 2. Ordinances adopted under section 405.1 in effect on the 5 effective date of this Act shall be invalid for purposes of 6 assessment years beginning on or after January 1, 2018. 7 Sec. 4. APPLICABILITY. This Act applies to assessment years 8 beginning on or after January 1, 2018. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to the assessment of certain subdivided 13 real property. 14 Current Code section 405.1 authorizes a county board of 15 supervisors to adopt an ordinance providing that property 16 acquired and subdivided for development of housing shall 17 continue to be assessed for taxation in the manner that it was 18 prior to the acquisition for housing until the lot is sold for 19 construction or occupancy of housing or five years from the 20 date of subdivision, whichever is shorter. Code section 405.1 21 also authorizes time extensions of certain ordinances that 22 affect the assessment of property subdivided for development 23 of housing and authorizes the time extensions of certain 24 ordinances by counties and by cities in the portion of the 25 applicable area located in the incorporated area of the city. 26 The bill strikes the authorization for cities and counties 27 to adopt, amend, or extend such ordinances and provides that 28 property acquired and subdivided for development of housing 29 shall continue to be assessed for taxation and taxed in the 30 manner it was prior to its acquisition for housing until the 31 lot is sold for construction or occupancy of housing. Under 32 the bill, upon the sale, the property must be assessed for 33 taxation as residential, multiresidential, or commercial 34 multifamily property, whichever is applicable. 35 -3- LSB 2238HC (2) 87 md/jh/sc 3/ 4
H.F. _____ Code section 441.72 provides that a platted lot for which 1 a subdivision plat was recorded is assessed for property tax 2 purposes as acreage or unimproved property for five years or 3 until the lot is actually improved with permanent construction, 4 whichever occurs first. However, for subdivision plats 5 recorded on or after January 1, 2004, but before January 1, 6 2011, the time limit is eight years. 7 The bill strikes the portions of Code section 441.72 8 relating to the five-year limitation and the eight-year 9 limitation and provides that when a subdivision plat is 10 recorded, the individual lots within the subdivision plat shall 11 not be assessed in excess of the total assessment of the land 12 as acreage or unimproved property until the lot is actually 13 improved with permanent construction. 14 The bill shall not be construed to require the refund 15 or modification of property taxes that are attributable to 16 assessment years beginning before January 1, 2018, or the 17 adjustment of property assessments for assessment years 18 beginning before January 1, 2018. The bill also provides that 19 local ordinances adopted under existing Code section 405.1 20 in effect on the effective date of the bill are invalid for 21 purposes of assessment years beginning on or after January 1, 22 2018. 23 The bill applies to assessment years beginning on or after 24 January 1, 2018. 25 -4- LSB 2238HC (2) 87 md/jh/sc 4/ 4
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