Bill Text: IA SF181 | 2023-2024 | 90th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
Senate
File
181
-
Introduced
SENATE
FILE
181
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
1056)
A
BILL
FOR
An
Act
relating
to
property
taxes
and
income
taxes
by
modifying
1
the
calculation
of
assessment
limitations
for
certain
2
property,
amending
provisions
relating
to
certain
tax
3
withholding
requirements
and
tax
credits,
and
including
4
effective
date
and
retroactive
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
ASSESSMENT
LIMITATIONS
2
Section
1.
Section
441.21,
subsection
4,
Code
2023,
is
3
amended
to
read
as
follows:
4
4.
For
valuations
established
as
of
January
1,
1979,
5
the
percentage
of
actual
value
at
which
agricultural
and
6
residential
property
shall
be
assessed
shall
be
the
quotient
of
7
the
dividend
and
divisor
as
defined
in
this
section
.
8
a.
(1)
The
dividend
for
each
class
of
property
shall
be
9
the
dividend
as
determined
for
each
class
of
property
for
10
valuations
established
as
of
January
1,
1978,
adjusted
by
the
11
product
obtained
by
multiplying
the
percentage
determined
12
for
that
year
by
the
amount
of
any
additions
or
deletions
to
13
actual
value,
excluding
those
resulting
from
the
revaluation
14
of
existing
properties,
as
reported
by
the
assessors
on
the
15
abstracts
of
assessment
for
1978,
plus
six
percent
of
the
16
amount
so
determined.
17
(2)
However,
if
the
difference
between
the
dividend
so
18
determined
for
either
class
of
property
and
the
dividend
for
19
that
class
of
property
for
valuations
established
as
of
January
20
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
21
the
percentage
determined
for
that
year
by
the
amount
of
22
any
additions
or
deletions
to
actual
value,
excluding
those
23
resulting
from
the
revaluation
of
existing
properties,
as
24
reported
by
the
assessors
on
the
abstracts
of
assessment
for
25
1978,
is
less
than
six
percent,
the
1979
dividend
for
the
other
26
class
of
property
shall
be
the
dividend
as
determined
for
that
27
class
of
property
for
valuations
established
as
of
January
28
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
29
the
percentage
determined
for
that
year
by
the
amount
of
30
any
additions
or
deletions
to
actual
value,
excluding
those
31
resulting
from
the
revaluation
of
existing
properties,
as
32
reported
by
the
assessors
on
the
abstracts
of
assessment
for
33
1978,
plus
a
percentage
of
the
amount
so
determined
which
is
34
equal
to
the
percentage
by
which
the
dividend
as
determined
35
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for
the
other
class
of
property
for
valuations
established
1
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
2
multiplying
the
percentage
determined
for
that
year
by
the
3
amount
of
any
additions
or
deletions
to
actual
value,
excluding
4
those
resulting
from
the
revaluation
of
existing
properties,
as
5
reported
by
the
assessors
on
the
abstracts
of
assessment
for
6
1978,
is
increased
in
arriving
at
the
1979
dividend
for
the
7
other
class
of
property.
8
(3)
For
valuations
established
for
assessment
years
9
beginning
on
or
after
January
1,
2022,
the
calculation
of
the
10
dividend
for
residential
property
under
this
subsection
shall
11
exclude
the
value
of
all
property
described
in
subsection
14,
12
paragraph
“a”
,
subparagraphs
(2),
(3),
(4),
(5),
and
(6),
13
and
the
property
described
in
subsection
14,
paragraph
“a”
,
14
subparagraph
(7),
that
contains
three
or
more
separate
dwelling
15
units.
16
b.
(1)
The
divisor
for
each
class
of
property
shall
be
17
the
total
actual
value
of
all
such
property
in
the
state
18
in
the
preceding
year,
as
reported
by
the
assessors
on
the
19
abstracts
of
assessment
submitted
for
1978,
plus
the
amount
of
20
value
added
to
said
total
actual
value
by
the
revaluation
of
21
existing
properties
in
1979
as
equalized
by
the
director
of
22
revenue
pursuant
to
section
441.49
.
The
director
shall
utilize
23
information
reported
on
abstracts
of
assessment
submitted
24
pursuant
to
section
441.45
in
determining
such
percentage.
25
(2)
For
valuations
established
for
assessment
years
26
beginning
on
or
after
January
1,
2022,
the
calculation
of
the
27
divisor
for
residential
property
under
this
subsection
shall
28
exclude
the
value
of
all
property
described
in
subsection
14,
29
paragraph
“a”
,
subparagraphs
(2),
(3),
(4),
(5),
and
(6),
30
and
the
property
described
in
subsection
14,
paragraph
“a”
,
31
subparagraph
(7),
that
contains
three
or
more
separate
dwelling
32
units.
33
c.
(1)
For
valuations
established
as
of
January
1,
1980,
34
and
each
assessment
year
thereafter
beginning
before
January
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1,
2013,
the
percentage
of
actual
value
as
equalized
by
the
1
director
of
revenue
as
provided
in
section
441.49
at
which
2
agricultural
and
residential
property
shall
be
assessed
shall
3
be
calculated
in
accordance
with
the
methods
provided
in
4
this
subsection
,
including
the
limitation
of
increases
in
5
agricultural
and
residential
assessed
values
to
the
percentage
6
increase
of
the
other
class
of
property
if
the
other
class
7
increases
less
than
the
allowable
limit
adjusted
to
include
8
the
applicable
and
current
values
as
equalized
by
the
director
9
of
revenue,
except
that
any
references
to
six
percent
in
this
10
subsection
shall
be
four
percent.
11
(2)
For
valuations
established
as
of
January
1,
2013,
and
12
each
assessment
year
thereafter,
the
percentage
of
actual
13
value
as
equalized
by
the
department
of
revenue
as
provided
in
14
section
441.49
at
which
agricultural
and
residential
property
15
shall
be
assessed
shall
be
calculated
in
accordance
with
the
16
methods
provided
in
this
subsection
,
including
the
limitation
17
of
increases
in
agricultural
and
residential
assessed
values
to
18
the
percentage
increase
of
the
other
class
of
property
if
the
19
other
class
increases
less
than
the
allowable
limit
adjusted
20
to
include
the
applicable
and
current
values
as
equalized
by
21
the
department
of
revenue,
except
that
any
references
to
six
22
percent
in
this
subsection
shall
be
three
percent.
23
Sec.
2.
IMPLEMENTATION.
24
1.
Notwithstanding
the
requirements
of
section
441.21,
25
subsection
9,
and
any
other
provision
of
law
to
the
contrary,
26
the
director
of
the
department
of
revenue
shall,
within
two
27
business
days
following
the
effective
date
of
this
division
28
of
this
Act,
issue
an
amended
order
certifying
to
the
county
29
auditor
of
each
county
the
percentages
of
actual
value
at
which
30
residential
property,
commercial
property,
industrial
property,
31
and
property
valued
by
the
department
of
revenue
pursuant
32
to
chapter
434
shall
be
assessed
for
taxation
under
section
33
441.21,
subsection
9,
for
the
assessment
year
beginning
January
34
1,
2022.
The
amended
order
shall
supersede
all
previous
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orders
certifying
percentages
for
assessment
limitations
for
1
residential
property,
commercial
property,
industrial
property,
2
and
property
valued
by
the
department
of
revenue
pursuant
to
3
chapter
434
for
the
assessment
year
beginning
January
1,
2022.
4
2.
Notwithstanding
the
requirements
of
section
441.21,
5
subsection
9,
and
any
other
provision
of
law
to
the
contrary,
6
upon
receipt
of
the
amended
order
under
subsection
1,
each
7
county
auditor
shall
proceed
to
determine
the
assessed
values
8
of
residential
property,
commercial
property,
industrial
9
property,
and
property
valued
by
the
department
of
revenue
10
pursuant
to
chapter
434
for
the
assessment
year
beginning
11
January
1,
2022,
by
applying
the
percentages
from
the
amended
12
order
to
the
actual
value
of
such
property
reported
to
the
13
county
auditor
by
the
assessor.
The
assessed
values
so
14
determined
shall
be
the
taxable
values
of
such
properties
upon
15
which
the
applicable
levy
shall
be
made.
16
3.
Notwithstanding
any
provision
of
law
to
the
contrary,
17
each
county
auditor,
within
fifteen
days
after
issuance
of
the
18
order
under
subsection
1,
shall
report
the
valuation
by
class
19
of
property
for
each
taxing
district
in
the
county
for
the
20
assessment
year
beginning
January
1,
2022,
to
the
department
of
21
management
on
forms
provided
by
the
department
of
management.
22
The
valuations
reported
shall
be
the
valuations
used
for
23
determining
the
levy
rates
necessary
to
fund
the
budgets
of
the
24
taxing
districts
for
the
fiscal
year
beginning
July
1,
2023.
25
4.
County
and
city
budgets
for
the
fiscal
year
beginning
26
July
1,
2023,
notwithstanding
any
other
provision
of
law
27
governing
the
timing
of
certifying
county
and
city
budgets,
28
including
the
budget
amount
limitations
under
section
331.434,
29
subsection
7,
and
section
384.16,
subsection
6,
shall
be
30
certified
on
or
before
April
15,
2023.
If
a
county
or
city
31
certifies
its
applicable
budget
after
March
31,
2023,
all
32
relevant
postcertification
deadlines
for
that
county
or
city
33
shall
be
tolled
by
the
number
of
days
after
March
31
that
the
34
county
or
city
certified
its
budget.
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Sec.
3.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
1
deemed
of
immediate
importance,
takes
effect
upon
enactment.
2
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
division
of
this
3
Act
applies
retroactively
to
assessment
years
beginning
on
or
4
after
January
1,
2022.
5
DIVISION
II
6
EMPLOYER
CHILD
CARE
TAX
CREDIT
7
Sec.
5.
Section
237A.31,
subsection
1,
Code
2023,
is
amended
8
to
read
as
follows:
9
1.
The
taxes
imposed
under
chapter
422,
subchapter
II
or
10
III
,
the
franchise
tax
imposed
under
chapter
422,
subchapter
11
V
,
the
gross
premiums
tax
under
chapter
432
,
or
the
moneys
and
12
credits
tax
imposed
under
section
533.329
shall
be
reduced
13
by
an
employer
child
care
tax
credit
equal
to
the
amount
14
proportion
of
the
federal
employer-provided
child
care
tax
15
credit
provided
in
section
45F
of
the
Internal
Revenue
Code
the
16
taxpayer
was
eligible
for
in
the
same
tax
year
attributable
to
17
expenditures
made
in
this
state
.
18
Sec.
6.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
19
deemed
of
immediate
importance,
takes
effect
upon
enactment.
20
Sec.
7.
RETROACTIVE
APPLICABILITY.
This
division
of
this
21
Act
applies
retroactively
to
January
1,
2023,
for
tax
years
22
beginning
on
or
after
that
date.
23
DIVISION
III
24
RETIREMENT
INCOME
——
WITHHOLDING
25
Sec.
8.
Section
422.16,
subsection
1,
paragraph
c,
Code
26
2023,
is
amended
to
read
as
follows:
27
c.
For
the
purposes
of
this
subsection
,
at
a
rate
specified
28
by
the
department
state
income
tax
shall
be
withheld
from
29
pensions,
annuities,
other
similar
periodic
payments,
and
other
30
income
payments
of
those
persons
whose
primary
residence
is
in
31
Iowa
in
those
circumstances
in
which
those
persons
have
federal
32
income
tax
withheld
from
pensions,
annuities,
other
similar
33
periodic
payments,
and
other
income
payments
under
sections
34
3402(o),
3402(p),
3402(s),
3405(a),
3405(b),
and
3405(c)
of
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the
Internal
Revenue
Code
at
a
rate
to
be
specified
by
the
1
department
made
to
Iowa
residents
if
the
payments
are
subject
2
to
Iowa
tax
.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
relates
to
property
taxes
and
income
taxes.
7
DIVISION
I
——
ASSESSMENT
LIMITATIONS.
Code
section
8
441.21(4)
establishes
the
calculation
used
to
determine
the
9
assessment
limitation
for
residential
property
and
agricultural
10
property.
As
the
result
of
2021
legislation,
certain
property
11
that
was
previously
classified
as
multiresidential
property
12
is
classified
as
residential
property
for
assessment
years
13
beginning
on
or
after
January
1,
2022,
and
the
valuations
of
14
such
property
are
included
within
the
aggregate
valuations
15
used
to
calculate
the
assessment
limitation
under
Code
section
16
441.21(4).
The
bill
excludes
the
values
of
the
following
from
17
the
calculation
of
the
assessment
limitation
for
assessment
18
years
beginning
on
or
after
January
1,
2022:
mobile
home
19
parks;
manufactured
home
communities;
land-leased
communities;
20
assisted
living
facilities;
parcels
primarily
used
or
intended
21
for
human
habitation
containing
three
or
more
separate
dwelling
22
units;
and
that
portion
of
a
parcel
primarily
used
or
intended
23
for
use
as
commercial
property
or
industrial
property
that
is
24
used
or
intended
for
human
habitation
containing
three
or
more
25
separate
dwelling
units.
26
The
bill
includes
implementation
provisions
requiring
the
27
director
of
the
department
of
revenue,
within
two
business
28
days
following
the
effective
date
of
the
bill,
to
issue
an
29
amended
order
certifying
to
the
county
auditor
of
each
county
30
the
percentages
of
actual
value
at
which
residential
property,
31
commercial
property,
industrial
property,
and
property
valued
32
by
the
department
of
revenue
pursuant
to
Code
chapter
434
shall
33
be
assessed
for
taxation.
The
bill
also
requires
each
county
34
auditor
to
determine
revised
assessed
values
based
on
the
35
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amended
order
and
report
the
revised
values
to
the
department
1
of
management
within
15
days
after
issuance
of
the
order
and
2
includes
provisions
governing
the
certification
of
county
and
3
city
budgets
for
the
fiscal
year
beginning
July
1,
2023.
4
The
division
takes
effect
upon
enactment
and
applies
5
retroactively
to
assessment
years
beginning
on
or
after
January
6
1,
2022.
7
DIVISION
II
——
EMPLOYER
CHILD
CARE
TAX
CREDIT.
The
bill
8
specifies
the
employer
child
care
tax
credit
is
available
9
against
the
individual
and
corporate
income
taxes,
the
10
franchise
tax,
the
insurance
premiums
tax,
and
the
moneys
and
11
credits
tax,
for
the
portion
of
the
federal
employer-provided
12
child
care
tax
credit
provided
in
section
45F
of
the
Internal
13
Revenue
Code,
attributable
to
expenditures
made
in
this
14
state.
The
division
takes
effect
upon
enactment
and
applies
15
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
16
or
after
that
date.
17
DIVISION
III
——
RETIREMENT
INCOME
——
WITHHOLDING.
Beginning
18
with
tax
years
beginning
on
or
after
January
1,
2023,
19
retirement
income
is
not
subject
to
Iowa
individual
income
20
tax.
The
bill
specifies
a
withholding
agent
is
not
required
to
21
withhold
Iowa
individual
income
tax
from
retirement
income
if
22
the
retirement
income
is
not
subject
to
Iowa
tax.
23
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