Bill Text: IA SF375 | 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. (Formerly SSB 1116.)
Sponsorship: Committee Bill
Status: (Introduced - Dead) 2017-04-05 - Fiscal note. [SF375 Detail]
Download: Iowa-2017-SF375-Introduced.html
Senate File 375 - Introduced SENATE FILE BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1116) A BILL FOR 1 An Act relating to the assessment of certain subdivided real 2 property and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2238SV (1) 87 md/jh/sc PAG LIN 1 1 Section 1. Section 405.1, Code 2017, is amended to read as 1 2 follows: 1 3 405.1 Housing development ==== tax status==== limitation. 1 41.a.The board of supervisors of a county may adopt 1 5 an ordinance providing that propertyProperty acquired and 1 6 subdivided for development of housingon or after January 1 7 1, 2011,shall continue to be assessed for taxation in the 1 8 manner that it was prior to the acquisition for housing. Each 1 9 lot shall continue to be taxed in the manner it was prior 1 10 to its acquisition for housing until the lot is sold for 1 11 construction or occupancy of housingor five years from the 1 12 date of subdivision, whichever is shorter. Upon the saleor 1 13 the expiration of the five=year period, the property shall be 1 14 assessed for taxation as residential, multiresidential, or 1 15 commercial multifamily property, whichever is applicable. 1 16b. Ordinances adopted under this section, to the extent 1 17 such ordinances affect the assessment of property subdivided 1 18 for development of housing on or after January 1, 2004, but 1 19 before January 1, 2011, shall remain in effect or otherwise 1 20 be made effective and such ordinances adopted under section 1 21 405.1, subsection 1, Code 2011, shall be extended to apply 1 22 the ordinances to the period of time ending ten years from 1 23 the date of subdivision, and ordinances adopted under section 1 24 405.1, subsection 2, Code 2011, shall be extended to apply the 1 25 ordinances to the period of time ending eight years from the 1 26 date of subdivision.1 272. On or after July 27, 2011, the board of supervisors 1 28 of a county may amend an ordinance adopted or otherwise made 1 29 effective under subsection 1 to extend the period of time 1 30 established under subsection 1 to apply the ordinance to a 1 31 period of time not to exceed five years beyond the end of the 1 32 period of time established under subsection 1. An extension 1 33 of an ordinance under this subsection may apply to all or 1 34 a portion of the property that was subject to the original 1 35 ordinance.2 13. A city council may adopt an ordinance affecting 2 2 that portion of the applicable property located within the 2 3 incorporated area of the city, effectuating an extension of 2 4 a county ordinance otherwise eligible to be extended under 2 5 subsection 2 and not previously extended by the board of 2 6 supervisors. An ordinance by a city council providing for 2 7 an extension under this subsection shall be subject to the 2 8 limitations of subsection 2.2 9 Sec. 2. Section 441.72, Code 2017, is amended to read as 2 10 follows: 2 11 441.72 Assessment of platted lots. 2 12 1.Except as provided in subsection 2, whenWhen a 2 13 subdivision plat is recorded pursuant to chapter 354, the 2 14 individual lots within the subdivision plat shall not be 2 15 assessed in excess of the total assessment of the land as 2 16 acreage or unimproved propertyfor five years after the 2 17 recording of the plat oruntil the lot isactually improved 2 18 with permanent construction, whichever occurs firstsold for 2 19 construction or occupancy of housing. When an individual lot 2 20 has beenimproved with permanentsold for construction or 2 21 occupancy of housing, the lot shall be assessed for taxation 2 22 purposes as provided in chapter 428 and this chapter. 2 232. For subdivision plats recorded pursuant to chapter 2 24 354 on or after January 1, 2004, but before January 1, 2011, 2 25 the individual lots within the subdivision plat shall not 2 26 be assessed in excess of the total assessment of the land 2 27 as acreage or unimproved property for eight years after the 2 28 recording of the plat or until the lot is actually improved 2 29 with permanent construction, whichever occurs first. When an 2 30 individual lot has been improved with permanent construction, 2 31 the lot shall be assessed for taxation purposes as provided in 2 32 chapter 428 and this chapter.2 333.2. This section does not apply to special assessment 2 34 levies. 2 35 Sec. 3. IMPLEMENTATION. 3 1 1. This Act shall not be construed to require the refund 3 2 or modification of property taxes that are attributable to 3 3 assessment years beginning before January 1, 2018, or the 3 4 adjustment of property assessments for assessment years 3 5 beginning before January 1, 2018. 3 6 2. Ordinances adopted under section 405.1 in effect on the 3 7 effective date of this Act shall be invalid for purposes of 3 8 assessment years beginning on or after January 1, 2018. 3 9 Sec. 4. APPLICABILITY. This Act applies to assessment years 3 10 beginning on or after January 1, 2018. 3 11 EXPLANATION 3 12 The inclusion of this explanation does not constitute agreement with 3 13 the explanation's substance by the members of the general assembly. 3 14 This bill relates to the assessment of certain subdivided 3 15 real property. 3 16 Current Code section 405.1 authorizes a county board of 3 17 supervisors to adopt an ordinance providing that property 3 18 acquired and subdivided for development of housing shall 3 19 continue to be assessed for taxation in the manner that it was 3 20 prior to the acquisition for housing until the lot is sold for 3 21 construction or occupancy of housing or five years from the 3 22 date of subdivision, whichever is shorter. Code section 405.1 3 23 also authorizes time extensions of certain ordinances that 3 24 affect the assessment of property subdivided for development 3 25 of housing and authorizes the time extensions of certain 3 26 ordinances by counties and by cities in the portion of the 3 27 applicable area located in the incorporated area of the city. 3 28 The bill strikes the authorization for cities and counties 3 29 to adopt, amend, or extend such ordinances and provides that 3 30 property acquired and subdivided for development of housing 3 31 shall continue to be assessed for taxation and taxed in the 3 32 manner it was prior to its acquisition for housing until the 3 33 lot is sold for construction or occupancy of housing. Under 3 34 the bill, upon the sale, the property must be assessed for 3 35 taxation as residential, multiresidential, or commercial 4 1 multifamily property, whichever is applicable. 4 2 Code section 441.72 provides that a platted lot for which 4 3 a subdivision plat was recorded is assessed for property tax 4 4 purposes as acreage or unimproved property for five years or 4 5 until the lot is actually improved with permanent construction, 4 6 whichever occurs first. However, for subdivision plats 4 7 recorded on or after January 1, 2004, but before January 1, 4 8 2011, the time limit is eight years. 4 9 The bill strikes the portions of Code section 441.72 4 10 relating to the five=year limitation and the eight=year 4 11 limitation and provides that when a subdivision plat is 4 12 recorded, the individual lots within the subdivision plat shall 4 13 not be assessed in excess of the total assessment of the land 4 14 as acreage or unimproved property until the lot is sold for 4 15 construction or occupancy of housing. 4 16 The bill shall not be construed to require the refund 4 17 or modification of property taxes that are attributable to 4 18 assessment years beginning before January 1, 2018, or the 4 19 adjustment of property assessments for assessment years 4 20 beginning before January 1, 2018. The bill also provides that 4 21 local ordinances adopted under existing Code section 405.1 4 22 in effect on the effective date of the bill are invalid for 4 23 purposes of assessment years beginning on or after January 1, 4 24 2018. 4 25 The bill applies to assessment years beginning on or after 4 26 January 1, 2018. LSB 2238SV (1) 87 md/jh/sc
