Bill Text: IA SF181 | 2023-2024 | 90th General Assembly | Enrolled
Bill Title: A bill for an act relating to property taxes and income taxes by modifying the calculation of assessment limitations for certain property, amending provisions relating to certain tax withholding requirements and tax credits, and including effective date and retroactive applicability provisions. (Formerly SSB 1056.) Effective date: 02/20/2023. Applicability date: 01/01/2022, 01/01/2023.
Spectrum: Committee Bill
Status: (Passed) 2023-05-16 - Fiscal note. [SF181 Detail]
Download: Iowa-2023-SF181-Enrolled.html
Senate
File
181
-
Enrolled
Senate
File
181
AN
ACT
RELATING
TO
PROPERTY
TAXES
AND
INCOME
TAXES
BY
MODIFYING
THE
CALCULATION
OF
ASSESSMENT
LIMITATIONS
FOR
CERTAIN
PROPERTY,
AMENDING
PROVISIONS
RELATING
TO
CERTAIN
TAX
WITHHOLDING
REQUIREMENTS
AND
TAX
CREDITS,
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
DIVISION
I
ASSESSMENT
LIMITATIONS
Section
1.
Section
441.21,
subsection
4,
Code
2023,
is
amended
to
read
as
follows:
4.
For
valuations
established
as
of
January
1,
1979,
the
percentage
of
actual
value
at
which
agricultural
and
residential
property
shall
be
assessed
shall
be
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
section
.
a.
(1)
The
dividend
for
each
class
of
property
shall
be
the
dividend
as
determined
for
each
class
of
property
for
valuations
established
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
the
percentage
determined
for
that
year
by
the
amount
of
any
additions
or
deletions
to
actual
value,
excluding
those
resulting
from
the
revaluation
of
existing
properties,
as
reported
by
the
assessors
on
the
abstracts
of
assessment
for
1978,
plus
six
percent
of
the
amount
so
determined.
(2)
However,
if
the
difference
between
the
dividend
so
determined
for
either
class
of
property
and
the
dividend
for
Senate
File
181,
p.
2
that
class
of
property
for
valuations
established
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
the
percentage
determined
for
that
year
by
the
amount
of
any
additions
or
deletions
to
actual
value,
excluding
those
resulting
from
the
revaluation
of
existing
properties,
as
reported
by
the
assessors
on
the
abstracts
of
assessment
for
1978,
is
less
than
six
percent,
the
1979
dividend
for
the
other
class
of
property
shall
be
the
dividend
as
determined
for
that
class
of
property
for
valuations
established
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
the
percentage
determined
for
that
year
by
the
amount
of
any
additions
or
deletions
to
actual
value,
excluding
those
resulting
from
the
revaluation
of
existing
properties,
as
reported
by
the
assessors
on
the
abstracts
of
assessment
for
1978,
plus
a
percentage
of
the
amount
so
determined
which
is
equal
to
the
percentage
by
which
the
dividend
as
determined
for
the
other
class
of
property
for
valuations
established
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
the
percentage
determined
for
that
year
by
the
amount
of
any
additions
or
deletions
to
actual
value,
excluding
those
resulting
from
the
revaluation
of
existing
properties,
as
reported
by
the
assessors
on
the
abstracts
of
assessment
for
1978,
is
increased
in
arriving
at
the
1979
dividend
for
the
other
class
of
property.
(3)
For
valuations
established
for
assessment
years
beginning
on
or
after
January
1,
2022,
the
calculation
of
the
dividend
for
residential
property
under
this
subsection
shall
exclude
the
value
of
all
property
described
in
subsection
14,
paragraph
“a”
,
subparagraphs
(2),
(3),
(4),
(5),
and
(6),
and
the
property
described
in
subsection
14,
paragraph
“a”
,
subparagraph
(7),
that
contains
three
or
more
separate
dwelling
units.
b.
(1)
The
divisor
for
each
class
of
property
shall
be
the
total
actual
value
of
all
such
property
in
the
state
in
the
preceding
year,
as
reported
by
the
assessors
on
the
abstracts
of
assessment
submitted
for
1978,
plus
the
amount
of
value
added
to
said
total
actual
value
by
the
revaluation
of
existing
properties
in
1979
as
equalized
by
the
director
of
revenue
pursuant
to
section
441.49
.
The
director
shall
utilize
Senate
File
181,
p.
3
information
reported
on
abstracts
of
assessment
submitted
pursuant
to
section
441.45
in
determining
such
percentage.
(2)
For
valuations
established
for
assessment
years
beginning
on
or
after
January
1,
2022,
the
calculation
of
the
divisor
for
residential
property
under
this
subsection
shall
exclude
the
value
of
all
property
described
in
subsection
14,
paragraph
“a”
,
subparagraphs
(2),
(3),
(4),
(5),
and
(6),
and
the
property
described
in
subsection
14,
paragraph
“a”
,
subparagraph
(7),
that
contains
three
or
more
separate
dwelling
units.
c.
(1)
For
valuations
established
as
of
January
1,
1980,
and
each
assessment
year
thereafter
beginning
before
January
1,
2013,
the
percentage
of
actual
value
as
equalized
by
the
director
of
revenue
as
provided
in
section
441.49
at
which
agricultural
and
residential
property
shall
be
assessed
shall
be
calculated
in
accordance
with
the
methods
provided
in
this
subsection
,
including
the
limitation
of
increases
in
agricultural
and
residential
assessed
values
to
the
percentage
increase
of
the
other
class
of
property
if
the
other
class
increases
less
than
the
allowable
limit
adjusted
to
include
the
applicable
and
current
values
as
equalized
by
the
director
of
revenue,
except
that
any
references
to
six
percent
in
this
subsection
shall
be
four
percent.
(2)
For
valuations
established
as
of
January
1,
2013,
and
each
assessment
year
thereafter,
the
percentage
of
actual
value
as
equalized
by
the
department
of
revenue
as
provided
in
section
441.49
at
which
agricultural
and
residential
property
shall
be
assessed
shall
be
calculated
in
accordance
with
the
methods
provided
in
this
subsection
,
including
the
limitation
of
increases
in
agricultural
and
residential
assessed
values
to
the
percentage
increase
of
the
other
class
of
property
if
the
other
class
increases
less
than
the
allowable
limit
adjusted
to
include
the
applicable
and
current
values
as
equalized
by
the
department
of
revenue,
except
that
any
references
to
six
percent
in
this
subsection
shall
be
three
percent.
Sec.
2.
IMPLEMENTATION.
1.
Notwithstanding
the
requirements
of
section
441.21,
subsection
9,
and
any
other
provision
of
law
to
the
contrary,
the
director
of
the
department
of
revenue
shall,
within
two
Senate
File
181,
p.
4
business
days
following
the
effective
date
of
this
division
of
this
Act,
issue
an
amended
order
certifying
to
the
county
auditor
of
each
county
the
percentages
of
actual
value
at
which
residential
property,
commercial
property,
industrial
property,
and
property
valued
by
the
department
of
revenue
pursuant
to
chapter
434
shall
be
assessed
for
taxation
under
section
441.21,
subsection
9,
for
the
assessment
year
beginning
January
1,
2022.
The
amended
order
shall
supersede
all
previous
orders
certifying
percentages
for
assessment
limitations
for
residential
property,
commercial
property,
industrial
property,
and
property
valued
by
the
department
of
revenue
pursuant
to
chapter
434
for
the
assessment
year
beginning
January
1,
2022.
2.
Notwithstanding
the
requirements
of
section
441.21,
subsection
9,
and
any
other
provision
of
law
to
the
contrary,
upon
receipt
of
the
amended
order
under
subsection
1,
each
county
auditor
shall
proceed
to
determine
the
assessed
values
of
residential
property,
commercial
property,
industrial
property,
and
property
valued
by
the
department
of
revenue
pursuant
to
chapter
434
for
the
assessment
year
beginning
January
1,
2022,
by
applying
the
percentages
from
the
amended
order
to
the
actual
value
of
such
property
reported
to
the
county
auditor
by
the
assessor.
The
assessed
values
so
determined
shall
be
the
taxable
values
of
such
properties
upon
which
the
applicable
levy
shall
be
made.
3.
Notwithstanding
any
provision
of
law
to
the
contrary,
each
county
auditor,
within
fifteen
days
after
issuance
of
the
order
under
subsection
1,
shall
report
the
valuation
by
class
of
property
for
each
taxing
district
in
the
county
for
the
assessment
year
beginning
January
1,
2022,
to
the
department
of
management
on
forms
provided
by
the
department
of
management.
The
valuations
reported
shall
be
the
valuations
used
for
determining
the
levy
rates
necessary
to
fund
political
subdivision
budgets
for
the
fiscal
year
beginning
July
1,
2023.
4.
In
order
to
implement
this
division
of
this
Act,
political
subdivision
budgets
for
the
fiscal
year
beginning
July
1,
2023,
notwithstanding
any
other
provision
of
law
relating
to
the
timing
of
certifying
budgets,
shall
be
certified
on
or
before
April
30,
2023.
If
a
political
subdivision
certifies
or
recertifies
its
applicable
budget
after
March
31,
Senate
File
181,
p.
5
2023,
all
relevant
protest
and
appeal
time
limits
shall
be
extended
to
correspond
to
allowances
for
a
timely
filing.
If
a
political
subdivision
has
certified
its
budget
for
the
fiscal
year
beginning
July
1,
2023,
before
the
effective
date
of
this
division
of
this
Act,
the
political
subdivision
may
recertify
its
budget
on
or
before
April
30,
2023.
Sec.
3.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
assessment
years
beginning
on
or
after
January
1,
2022.
DIVISION
II
EMPLOYER
CHILD
CARE
TAX
CREDIT
Sec.
5.
Section
237A.31,
subsection
1,
Code
2023,
is
amended
to
read
as
follows:
1.
The
taxes
imposed
under
chapter
422,
subchapter
II
or
III
,
the
franchise
tax
imposed
under
chapter
422,
subchapter
V
,
the
gross
premiums
tax
under
chapter
432
,
or
the
moneys
and
credits
tax
imposed
under
section
533.329
shall
be
reduced
by
an
employer
child
care
tax
credit
equal
to
the
amount
proportion
of
the
federal
employer-provided
child
care
tax
credit
provided
in
section
45F
of
the
Internal
Revenue
Code
the
taxpayer
was
eligible
for
in
the
same
tax
year
attributable
to
expenditures
made
in
this
state
.
Sec.
6.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
7.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
III
RETIREMENT
INCOME
——
WITHHOLDING
Sec.
8.
Section
422.16,
subsection
1,
paragraph
c,
Code
2023,
is
amended
to
read
as
follows:
c.
For
the
purposes
of
this
subsection
,
at
a
rate
specified
by
the
department,
state
income
tax
shall
be
withheld
from
pensions,
annuities,
other
similar
periodic
payments,
and
other
income
payments
of
those
persons
whose
primary
residence
is
in
Iowa
in
those
circumstances
in
which
those
persons
have
federal
income
tax
withheld
from
pensions,
annuities,
other
similar
Senate
File
181,
p.
6
periodic
payments,
and
other
income
payments
under
sections
3402(o),
3402(p),
3402(s),
3405(a),
3405(b),
and
3405(c)
of
the
Internal
Revenue
Code
at
a
rate
to
be
specified
by
the
department
made
to
Iowa
residents
if
the
payments
are
subject
to
Iowa
tax
.
Sec.
9.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
10.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
or
after
that
date.
______________________________
AMY
SINCLAIR
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
181,
Ninetieth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2023
______________________________
KIM
REYNOLDS
Governor
