Bill Text: IA HSB224 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to property taxation for commercial child care centers and facilities and including effective date, applicability, and retroactive applicability provisions.(See HF 668.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-03-15 - Committee report approving bill, renumbered as HF 668. [HSB224 Detail]
Download: Iowa-2023-HSB224-Introduced.html
House
Study
Bill
224
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
KAUFMANN)
A
BILL
FOR
An
Act
relating
to
property
taxation
for
commercial
child
1
care
centers
and
facilities
and
including
effective
date,
2
applicability,
and
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
441.21,
subsection
5,
paragraph
b,
1
subparagraph
(2),
unnumbered
paragraph
1,
Code
2023,
is
amended
2
to
read
as
follows:
3
For
Except
for
property
subject
to
subparagraph
(3),
for
4
valuations
established
for
the
assessment
year
beginning
5
January
1,
2022,
and
each
assessment
year
thereafter,
the
6
portion
of
actual
value
at
which
each
property
unit
of
7
commercial
property
shall
be
assessed
shall
be
the
sum
of
the
8
following:
9
Sec.
2.
Section
441.21,
subsection
5,
paragraph
b,
Code
10
2023,
is
amended
by
adding
the
following
new
subparagraph:
11
NEW
SUBPARAGRAPH
.
(3)
(a)
For
valuations
established
12
for
the
assessment
year
beginning
January
1,
2023,
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
center
or
child
care
16
facility,
as
defined
in
section
237A.1,
and
for
which
an
17
application
has
been
allowed
under
this
subparagraph,
shall
be
18
assessed
at
an
amount
equal
to
the
product
of
the
assessment
19
limitation
percentage
applicable
to
residential
property
under
20
subsection
4
for
that
assessment
year
multiplied
by
the
actual
21
value
of
the
property.
22
(b)
A
person
who
wishes
to
qualify
for
the
assessment
23
limitation
under
this
subparagraph
shall
file
an
application
24
with
the
assessor
not
later
than
July
1
of
the
assessment
25
year
for
which
the
person
is
first
requesting
the
assessment
26
limitation
on
forms
provided
by
the
department
of
revenue.
27
The
application
shall
describe
the
property
and
its
location
28
and
include
other
information
required
by
the
department
of
29
revenue.
The
application
shall
be
accompanied
by
a
copy
30
of
the
license
to
operate
as
a
child
care
center
or
child
31
care
facility
issued
by
the
department
of
health
and
human
32
services
or
other
proof
of
eligibility
set
forth
in
rule
by
the
33
department
of
revenue.
Upon
allowance
of
the
application,
the
34
assessment
limitation
shall
be
applied
to
the
portion
of
the
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property
unit
of
commercial
property
that
is
primarily
used
as
1
a
child
care
center
or
child
care
facility
for
successive
years
2
without
further
filing
as
long
as
the
portion
of
the
property
3
unit
continues
to
be
classified
as
commercial
property
and
is
4
used
for
the
purposes
specified
in
the
application.
5
(c)
Not
later
than
July
6
of
each
year,
the
assessor
shall
6
remit
the
applications
for
the
assessment
limitation
to
the
7
county
auditor
with
the
assessor’s
recommendation
for
allowance
8
or
disallowance.
If
the
assessor
recommends
disallowance,
the
9
assessor
shall
submit
the
reasons
for
the
recommendation,
in
10
writing,
to
the
county
auditor.
11
(d)
Not
later
than
July
15
of
each
year,
the
county
auditor
12
shall
forward
the
applications
for
the
assessment
limitation
13
to
the
board
of
supervisors.
The
board
shall
determine
the
14
eligibility
for
each
application
on
or
before
September
1
of
15
each
year.
If
the
board
disallows
a
claim,
it
shall
send
16
written
notice,
by
mail,
to
the
applicant
at
the
applicant’s
17
last-known
address.
The
notice
shall
state
the
reasons
for
18
disallowing
the
application
and
shall
state
the
applicant’s
19
right
to
appeal
the
board’s
action
to
the
district
court
under
20
subparagraph
division
(f).
21
(e)
All
applications
that
have
been
allowed
by
the
board
of
22
supervisors
shall
be
certified
on
or
before
October
1,
in
each
23
year,
by
the
board
of
supervisors
to
the
county
auditor.
24
(f)
Within
thirty
days
following
the
date
of
the
notice
of
25
disallowance
under
subparagraph
division
(d),
the
applicant
may
26
appeal
the
disallowance
to
the
district
court
of
the
county
in
27
which
the
property
is
situated.
28
(g)
If
the
person
ceases
to
use
the
property
as
a
child
29
care
center
or
child
care
facility,
the
person
shall
provide
30
written
notice
to
the
assessor
by
July
1
following
the
date
on
31
which
the
use
has
changed.
If,
at
any
time
within
thirty-six
32
months
following
the
date
that
an
application
is
allowed,
33
the
board
determines
that
the
person
received
an
assessment
34
limitation
under
this
subparagraph
that
the
person
is
not
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entitled
to,
the
treasurer
shall
collect
from
the
person
the
1
amount
of
additional
tax
that
would
have
been
assessed
on
the
2
property
if
the
property
received
the
assessment
limitations
3
under
subparagraph
(2),
and
the
amount
shall
become
a
lien
4
on
the
property
that
received
the
assessment
limitation
and
5
shall
be
collected
by
the
county
treasurer
in
the
same
manner
6
as
other
taxes.
Prior
to
the
board’s
determination
that
a
7
person
received
an
assessment
limitation
that
the
person
is
8
not
entitled
to,
the
board
shall
notify
the
person
by
mail
and
9
conduct
a
hearing.
10
(h)
The
assessor
shall
retain
a
permanent
file
of
current
11
applications
made
under
this
subparagraph.
The
county
recorder
12
shall
give
notice
to
the
assessor
of
each
transfer
of
title
13
filed
in
the
recorder’s
office.
The
notice
from
the
county
14
recorder
shall
describe
the
property
transferred,
the
name
of
15
the
person
transferring
title
to
the
property,
and
the
name
of
16
the
person
to
whom
title
to
the
property
has
been
transferred.
17
The
assessor
shall
file
a
notice
of
transfer
of
property
for
18
which
an
application
is
filed
when
notice
is
received
from
the
19
office
of
the
county
recorder.
20
(i)
The
department
shall
adopt
rules
to
implement
and
21
administer
this
subparagraph.
22
Sec.
3.
Section
441.21,
subsection
5,
paragraph
e,
23
subparagraphs
(1)
and
(3),
Code
2023,
are
amended
to
read
as
24
follows:
25
(1)
For
each
fiscal
year
beginning
on
or
after
July
1,
2023,
26
there
is
appropriated
from
the
general
fund
of
the
state
to
27
the
department
of
revenue
the
sum
of
one
hundred
twenty-five
28
million
dollars
to
be
used
for
payments
under
this
paragraph
29
calculated
as
a
result
of
the
assessment
limitations
imposed
30
under
paragraph
“b”
,
subparagraph
(2),
subparagraph
division
31
(a)
;
,
and
paragraph
“c”
,
subparagraph
(2),
subparagraph
32
division
(a)
;
and
paragraph
“b”
,
subparagraph
(3),
for
the
33
portion
of
actual
value
of
each
property
unit
subject
to
the
34
assessment
limitation
under
paragraph
“b”
,
subparagraph
(3),
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that
is
less
than
or
equal
to
one
hundred
fifty
thousand
1
dollars
.
2
(3)
On
or
before
July
1
of
each
fiscal
year,
the
assessor
3
shall
report
to
the
county
auditor
that
portion
of
the
total
4
actual
value
of
all
commercial
property
and
industrial
property
5
in
the
county
that
is
subject
to
the
assessment
limitations
6
imposed
under
paragraph
“b”
,
subparagraph
(2),
subparagraph
7
division
(a)
;
,
and
paragraph
“c”
,
subparagraph
(2),
8
subparagraph
division
(a)
,
;
and
paragraph
“b”
,
subparagraph
9
(3),
for
the
portion
of
actual
value
of
each
property
unit
10
subject
to
the
assessment
limitation
under
paragraph
“b”
,
11
subparagraph
(3),
that
is
less
than
or
equal
to
one
hundred
12
fifty
thousand
dollars,
for
the
assessment
year
used
to
13
calculate
the
taxes
due
and
payable
in
that
fiscal
year.
14
Sec.
4.
Section
441.21,
subsection
5,
paragraph
e,
15
subparagraph
(4),
subparagraph
division
(a),
Code
2023,
is
16
amended
to
read
as
follows:
17
(a)
The
product
of
the
portion
of
the
total
actual
value
18
of
all
commercial
property,
industrial
property,
and
property
19
valued
by
the
department
under
chapter
434
in
the
county
20
that
is
subject
to
the
assessment
limitations
imposed
under
21
paragraph
“b”
,
subparagraph
(2),
subparagraph
division
(a)
;
,
22
and
paragraph
“c”
,
subparagraph
(2),
subparagraph
division
23
(a)
,
;
and
paragraph
“b”
,
subparagraph
(3),
for
the
portion
of
24
actual
value
of
each
property
unit
subject
to
the
assessment
25
limitation
under
paragraph
“b”
,
subparagraph
(3),
that
is
less
26
than
or
equal
to
one
hundred
fifty
thousand
dollars,
for
the
27
applicable
assessment
year
used
to
calculate
taxes
which
are
28
due
and
payable
in
the
applicable
fiscal
year
multiplied
by
the
29
difference,
stated
as
a
percentage,
between
ninety
percent
and
30
the
assessment
limitation
percentage
applicable
to
residential
31
property
under
subsection
4
for
the
applicable
assessment
year.
32
Sec.
5.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
33
importance,
takes
effect
upon
enactment.
34
Sec.
6.
RETROACTIVE
APPLICABILITY.
The
following
apply
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retroactively
to
assessment
years
beginning
on
or
after
January
1
1,
2023:
2
1.
The
section
of
this
Act
amending
section
441.21,
3
subsection
5,
paragraph
“b”,
subparagraph
(2),
unnumbered
4
paragraph
1.
5
2.
The
section
of
this
Act
enacting
section
441.21,
6
subsection
5,
paragraph
“b”,
subparagraph
(3).
7
Sec.
7.
APPLICABILITY.
The
following
apply
July
1,
2024,
8
for
payments
under
section
441.21,
subsection
5,
paragraph
“e”,
9
for
fiscal
years
beginning
on
or
after
that
date:
10
1.
The
section
of
this
Act
amending
section
441.21,
11
subsection
5,
paragraph
“e”,
subparagraphs
(1)
and
(3).
12
2.
The
section
of
this
Act
amending
section
441.21,
13
subsection
5,
paragraph
“e”,
subparagraph
(4),
subparagraph
14
division
(a).
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
relates
to
property
taxation
for
commercial
19
child
care
centers
and
facilities.
Code
section
441.21(5)
20
determines
the
amount
of
actual
value
of
commercial
property
21
that
is
subject
to
property
tax.
The
amount
is
the
sum
of
22
the
residential
assessment
limitation
to
the
portion
of
23
the
property’s
value
that
does
not
exceed
$150,000
plus
90
24
percent
of
the
property’s
value
in
excess
of
$150,000.
The
25
bill
excludes
property
primarily
used
as
a
child
care
center
26
or
child
care
facility
from
that
determination
and
instead
27
specifies
that
for
assessment
years
beginning
on
or
after
28
January
1,
2023,
the
amount
of
actual
value
of
such
properties
29
that
is
subject
to
property
tax
and
for
which
an
application
30
has
been
allowed
is
equal
to
the
product
of
the
assessment
31
limitation
percentage
applicable
to
residential
property
32
multiplied
by
the
actual
value
of
the
property.
33
The
bill
establishes
an
application
and
approval
procedure
34
for
the
assessment
limitation
and
amends
provisions
relating
to
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the
calculation
of
payments
to
local
governments
as
the
result
1
of
the
application
of
certain
assessment
limitations
under
Code
2
section
441.21(5)(e).
3
The
bill
takes
effect
upon
enactment,
applies
retroactively
4
to
assessment
years
beginning
on
or
after
January
1,
2023,
and
5
applies
to
payments
to
local
governments
under
Code
section
6
441.21(5)(e)
for
fiscal
years
beginning
on
or
after
July
1,
7
2024.
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