House Study Bill 312


                                          HOUSE FILE       
                                          BY  (PROPOSED COMMITTEE ON WAYS
                                               AND MEANS BILL BY
                                               CHAIRPERSON VAN FOSSEN)


       Passed House,  Date               Passed Senate, Date             
       Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                    Approved                            

                                         A BILL FOR

     1 An Act relating to taxation of property and income and including
     2    effective date and applicability date provisions.
     3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
     4 TLSB 3432YC 80
     5 sc/cf/24

PAG LIN



  1  1    Section 1.  NEW SECTION.  331.404  DEFINITION == MAXIMUM
  1  2 DOLLARS.
  1  3    For purposes of this division, the terms "per thousand
  1  4 dollars of assessed valuation", "per thousand dollars of
  1  5 assessed value", "per thousand dollars of taxable valuation",
  1  6 and "per thousand dollars of taxable value" in relation to
  1  7 taxes levied against agricultural, residential, commercial,
  1  8 and industrial property shall mean the valuations for such
  1  9 property as determined pursuant to section 441.21, Code 2005,
  1 10 for the assessment year beginning January 1, 2005.
  1 11    Beginning with fiscal years beginning on or after July 1,
  1 12 2007, for any section of this division that specifically
  1 13 limits a property tax levy rate authorized to be assessed on
  1 14 taxable property for a fiscal year, the maximum amount of tax
  1 15 dollars that may be levied for that fiscal year shall be
  1 16 determined by multiplying the maximum tax levy rate authorized
  1 17 in that section by the valuations for property determined
  1 18 pursuant to section 441.21, Code 2005, for the assessment year
  1 19 beginning January 1, 2005.
  1 20    Sec. 2.  NEW SECTION.  359.53  DEFINITION == MAXIMUM
  1 21 DOLLARS.
  1 22    For purposes of this chapter, the terms "per thousand
  1 23 dollars of assessed valuation", "per thousand dollars of
  1 24 assessed value", "per thousand dollars of taxable valuation",
  1 25 and "per thousand dollars of taxable value" in relation to
  1 26 taxes levied against agricultural, residential, commercial,
  1 27 and industrial property shall mean the valuations for such
  1 28 property as determined pursuant to section 441.21, Code 2005,
  1 29 for the assessment year beginning January 1, 2005.
  1 30    Beginning with fiscal years beginning on or after July 1,
  1 31 2007, for any section of this chapter that specifically limits
  1 32 a property tax levy rate authorized to be assessed on taxable
  1 33 property for a fiscal year, the maximum amount of tax dollars
  1 34 that may be levied for that fiscal year shall be determined by
  1 35 multiplying the maximum tax levy rate authorized in that
  2  1 section by the valuations for property determined pursuant to
  2  2 section 441.21, Code 2005, for the assessment year beginning
  2  3 January 1, 2005.
  2  4    Sec. 3.  NEW SECTION.  384.1A  DEFINITION == MAXIMUM
  2  5 DOLLARS.
  2  6    For purposes of this chapter, the terms "per thousand
  2  7 dollars of assessed valuation", "per thousand dollars of
  2  8 assessed value", "per thousand dollars of taxable valuation",
  2  9 and "per thousand dollars of taxable value" in relation to
  2 10 taxes levied against agricultural, residential, commercial,
  2 11 and industrial property shall mean the valuations for such
  2 12 property as determined pursuant to section 441.21, Code 2005,
  2 13 for the assessment year beginning January 1, 2005.
  2 14    Beginning with fiscal years beginning on or after July 1,
  2 15 2007, for any section of this chapter that specifically limits
  2 16 a property tax levy rate authorized to be assessed on taxable
  2 17 property for a fiscal year, the maximum amount of tax dollars
  2 18 that may be levied for that fiscal year shall be determined by
  2 19 multiplying the maximum tax levy rate authorized in that
  2 20 section by the valuations for property determined pursuant to
  2 21 section 441.21, Code 2005, for the assessment year beginning
  2 22 January 1, 2005.
  2 23    Sec. 4.  Section 425.1, subsections 2 and 4, Code 2003, are
  2 24 amended to read as follows:
  2 25    2.  The homestead credit fund shall be apportioned each
  2 26 year so as to give a credit against the tax on each eligible
  2 27 homestead in the state in an amount equal to five percent of
  2 28 the actual levy on the first four thousand eight hundred fifty
  2 29 dollars of actual value for each homestead.
  2 30    4.  Annually the department of revenue and finance shall
  2 31 estimate the credit not to exceed five percent of the actual
  2 32 levy on the first four thousand eight hundred fifty dollars of
  2 33 actual value of each eligible homestead, and shall certify to
  2 34 the county auditor of each county the credit and its amount in
  2 35 dollars.  Each county auditor shall then enter the credit
  3  1 against the tax levied on each eligible homestead in each
  3  2 county payable during the ensuing year, designating on the tax
  3  3 lists the credit as being from the homestead credit fund, and
  3  4 credit shall then be given to the several taxing districts in
  3  5 which eligible homesteads are located in an amount equal to
  3  6 the credits allowed on the taxes of the homesteads.  The
  3  7 amount of credits shall be apportioned by each county
  3  8 treasurer to the several taxing districts as provided by law,
  3  9 in the same manner as though the amount of the credit had been
  3 10 paid by the owners of the homesteads.  However, the several
  3 11 taxing districts shall not draw the funds so credited until
  3 12 after the semiannual allocations have been received by the
  3 13 county treasurer, as provided in this chapter.  Each county
  3 14 treasurer shall show on each tax receipt the amount of credit
  3 15 received from the homestead credit fund.
  3 16    Sec. 5.  Section 426A.2, Code 2003, is amended to read as
  3 17 follows:
  3 18    426A.2  MILITARY SERVICE TAX CREDIT.
  3 19    The moneys shall be apportioned each year so as to replace
  3 20 all or a portion of the tax which would be due on property
  3 21 eligible for military service tax exemption in the state, if
  3 22 the property were subject to taxation, the amount of the
  3 23 credit to be not more than six dollars and ninety=two cents
  3 24 per thousand dollars of assessed value of property which would
  3 25 be subject to the tax, except for the military service tax
  3 26 exemption one and seventy=five hundredths percent of the
  3 27 actual levy on the property.
  3 28    Sec. 6.  Section 441.19, subsections 1 and 2, Code 2003,
  3 29 are amended to read as follows:
  3 30    1.  Supplemental and optional to the procedure for the
  3 31 assessment of property by the assessor as provided in this
  3 32 chapter, the assessor may require from all persons required to
  3 33 list their property for taxation as provided by sections 428.1
  3 34 and 428.2, a supplemental return to be prescribed by the
  3 35 director of revenue and finance upon which the person shall
  4  1 list the person's property and any additions or modifications
  4  2 completed in the prior year to a structure located on the
  4  3 property.  The supplemental return shall be in substantially
  4  4 the same form as now prescribed by law for the assessment
  4  5 rolls used in the listing of property by the assessors.  Every
  4  6 person required to list property for taxation shall make a
  4  7 complete listing of the property upon supplemental forms and
  4  8 return the listing to the assessor as promptly as possible.
  4  9 The return shall be verified over the signature of the person
  4 10 making the return and section 441.25 applies to any person
  4 11 making such a return.  The assessor shall make supplemental
  4 12 return forms available as soon as practicable after the first
  4 13 day of January of each year.  The assessor shall make
  4 14 supplemental return forms available to the taxpayer by mail,
  4 15 or at a designated place within the taxing district.
  4 16    2.  Upon receipt of such supplemental return from any
  4 17 person the assessor shall prepare a roll assessing such person
  4 18 as hereinafter provided.  In the preparation of such
  4 19 assessment roll the assessor shall be guided not only by the
  4 20 information contained in such supplemental roll, but by any
  4 21 other information the assessor may have or which may be
  4 22 obtained by the assessor as prescribed by the law relating to
  4 23 the assessment of property.  The assessor shall not be bound
  4 24 by any values or square footage determinations or purchase
  4 25 prices as listed in such supplemental return, and may include
  4 26 in the assessment roll any property omitted from the
  4 27 supplemental return which in the knowledge and belief of the
  4 28 assessor should be listed as required by law by the person
  4 29 making the supplemental return.  Upon completion of such roll
  4 30 the assessor shall deliver to the person submitting such
  4 31 supplemental return a copy of the assessment roll, either
  4 32 personally or by mail.
  4 33    Sec. 7.  Section 441.21, Code 2003, is amended by striking
  4 34 the section and inserting in lieu thereof the following:
  4 35    441.21  ASSESSMENT OF STRUCTURES.
  5  1    1.  All real property, except land, subject to taxation
  5  2 shall be assessed on a value per square foot basis according
  5  3 to the provisions of this section.
  5  4    2.  The terms "per thousand dollars of assessed valuation",
  5  5 "per thousand dollars of assessed value", "per thousand
  5  6 dollars of taxable valuation", and "per thousand dollars of
  5  7 taxable value" as used in other sections of the Code in
  5  8 relation to taxes levied against agricultural, residential,
  5  9 commercial, and industrial property shall mean the valuations
  5 10 as determined pursuant to section 441.21, Code 2005, for such
  5 11 property for the assessment year beginning January 1, 2005.
  5 12    3.  a.  Subject to paragraph "b", for valuations
  5 13 established as of January 1, 2006, and for subsequent
  5 14 assessment years, the assessed value per square foot of a
  5 15 residential structure shall be an amount equal to the
  5 16 valuation of the structure as determined for the assessment
  5 17 year beginning January 1, 2005, prior to application of the
  5 18 assessment limitation for that year, divided by the total
  5 19 number of square feet of the structure as of January 1, 2005.
  5 20    b.  (1)  The assessed value per square foot of an existing
  5 21 residential structure purchased after January 1, 2005, shall
  5 22 be the purchase price of the structure divided by the
  5 23 cumulative inflation factor established for the assessment
  5 24 year following the year of purchase, divided by the total
  5 25 number of square feet of the structure as of January 1 of the
  5 26 assessment year.  The assessed value per square foot of a
  5 27 residential structure newly constructed after January 1, 2005,
  5 28 shall be the market value of the structure, as determined by
  5 29 the assessor, divided by the cumulative inflation factor
  5 30 established for the assessment year following the year
  5 31 construction was completed, divided by the total number of
  5 32 square feet of the structure as of January 1 of the assessment
  5 33 year.
  5 34    (2)  If additions or modifications to an existing structure
  5 35 do not constitute a newly constructed structure, the valuation
  6  1 of the structure shall only increase if the square footage of
  6  2 the structure increases.  The increased valuation, if any,
  6  3 equals the amount of increased square feet times the value per
  6  4 square foot of the structure prior to the additions or
  6  5 modifications.
  6  6    4.  a.  Subject to paragraph "b" for valuations established
  6  7 as of January 1, 2006, and for subsequent assessment years,
  6  8 the assessed value per square foot of a commercial or
  6  9 industrial structure shall be an amount equal to the valuation
  6 10 of the structure as determined for the assessment year
  6 11 beginning January 1, 2005, prior to application of the
  6 12 assessment limitation for that year, divided by the total
  6 13 number of square feet of the structure as of January 1, 2005.
  6 14    b.  (1)  The assessed value per square foot of an existing
  6 15 commercial or industrial structure purchased after January 1,
  6 16 2005, shall be the purchase price of the structure divided by
  6 17 the cumulative inflation factor established for the assessment
  6 18 year following the year of purchase, divided by the total
  6 19 number of square feet of the structure as of January 1 of the
  6 20 assessment year.  The assessed value per square foot of a
  6 21 commercial or industrial structure newly constructed after
  6 22 January 1, 2005, shall be the market value of the structure,
  6 23 as determined by the assessor, divided by the cumulative
  6 24 inflation factor established for the assessment year following
  6 25 the year construction was completed, divided by the total
  6 26 number of square feet of the structure as of January 1 of the
  6 27 assessment year.
  6 28    (2)  If additions or modifications to an existing structure
  6 29 do not constitute a newly constructed structure, the valuation
  6 30 of the structure shall only increase if the square footage of
  6 31 the structure increases.  The increased valuation, if any,
  6 32 equals the amount of increased square feet times the value per
  6 33 square foot of the structure prior to the additions or
  6 34 modifications.
  6 35    5.  a.  In determining the market value of newly
  7  1 constructed property, the assessor may determine the value of
  7  2 the property using uniform and recognized appraisal methods
  7  3 including its productive and earning capacity, if any,
  7  4 industrial conditions, its cost, physical and functional
  7  5 depreciation and obsolescence and replacement cost, and all
  7  6 other factors which would assist in determining the fair and
  7  7 reasonable market value of the property but the actual value
  7  8 shall not be determined by use of only one such factor.  The
  7  9 following shall not be taken into consideration:  special
  7 10 value or use value of the property to its present owner, and
  7 11 the goodwill or value of a business that uses the property as
  7 12 distinguished from the value of the property as property.
  7 13 However, in assessing property that is rented or leased to
  7 14 low=income individuals and families as authorized by section
  7 15 42 of the Internal Revenue Code, as amended, and which section
  7 16 limits the amount that the individual or family pays for the
  7 17 rental or lease of units in the property, the assessor shall
  7 18 use the productive and earning capacity from the actual rents
  7 19 received as a method of appraisal and shall take into account
  7 20 the extent to which that use and limitation reduces the market
  7 21 value of the property.  The assessor shall not consider any
  7 22 tax credit equity or other subsidized financing as income
  7 23 provided to the property in determining the market value.
  7 24 Upon adoption of uniform rules by the department of revenue
  7 25 and finance or covering assessments and valuations of such
  7 26 properties, the valuation on such properties shall be
  7 27 determined in accordance with such values for assessment
  7 28 purposes to assure uniformity, but such rules shall not be
  7 29 inconsistent with or change the foregoing means of determining
  7 30 the market value.
  7 31    b.  The actual value of special purpose tooling, which is
  7 32 subject to assessment and taxation as real property under
  7 33 section 427A.1, subsection 1, paragraph "e", but which can be
  7 34 used only to manufacture property which is protected by one or
  7 35 more United States or foreign patents, shall not exceed the
  8  1 fair and reasonable exchange value between a willing buyer and
  8  2 a willing seller, assuming that the willing buyer is
  8  3 purchasing only the special purpose tooling and not the patent
  8  4 covering the property which the special purpose tooling is
  8  5 designed to manufacture nor the rights to manufacture the
  8  6 patented property.  For purposes of this paragraph, special
  8  7 purpose tooling includes dies, jigs, fixtures, molds,
  8  8 patterns, and similar property.  The assessor shall not take
  8  9 into consideration the special value or use value to the
  8 10 present owner of the special purpose tooling which is designed
  8 11 and intended solely for the manufacture of property protected
  8 12 by a patent in arriving at the actual value of the special
  8 13 purpose tooling.
  8 14    c.  In determining the purchase price of a structure, the
  8 15 assessor shall consider whether the sale was a fair and
  8 16 reasonable exchange in the year in which the property was
  8 17 listed and valued between a willing buyer and a willing
  8 18 seller, neither being under any compulsion to buy or sell and
  8 19 each being familiar with all the facts relating to the
  8 20 particular property.  Sale prices of the property or
  8 21 comparable property in normal transactions reflecting market
  8 22 value, and the probable availability or unavailability of
  8 23 persons interested in purchasing the property, shall be taken
  8 24 into consideration in determining purchase price.  In
  8 25 determining purchase price, sale prices of property in
  8 26 abnormal transactions not reflecting market value shall not be
  8 27 taken into account, or shall be adjusted to eliminate the
  8 28 effect of factors which distort market value, including but
  8 29 not limited to sales to immediate family of the seller,
  8 30 foreclosure or other forced sales, contract sales, or
  8 31 discounted purchase transactions.
  8 32    6.  For purposes of this section:
  8 33    a.  "Annual inflation factor" means an index, expressed as
  8 34 a percentage, determined by the department by January 15 of
  8 35 the assessment year for which the factor is determined, which
  9  1 reflects the purchasing power of the dollar as a result of
  9  2 inflation during the twelve=month period ending September 30
  9  3 of the calendar year preceding the assessment year for which
  9  4 the factor is determined.  In determining the annual inflation
  9  5 factor, the department shall use the annual percent change,
  9  6 but not less than zero percent, in the gross domestic product
  9  7 price deflator computed for the calendar year by the bureau of
  9  8 economic analysis of the United States department of commerce
  9  9 and shall add all of that percent change to one hundred
  9 10 percent.  The annual inflation factor and the cumulative
  9 11 inflation factor shall each be expressed as a percentage
  9 12 rounded to the nearest one=tenth of one percent.  The annual
  9 13 inflation factor shall not be less than one hundred percent.
  9 14 The annual inflation factor for the 2005 calendar year is one
  9 15 hundred percent.
  9 16    b.  "Cumulative inflation factor" means the product of the
  9 17 annual inflation factor for the 2005 calendar year and all
  9 18 annual inflation factors for subsequent calendar years as
  9 19 determined pursuant to this subsection.  The cumulative
  9 20 inflation factor applies to the assessment year beginning on
  9 21 January 1 of the calendar year for which the latest annual
  9 22 inflation factor has been determined.
  9 23    c.  "Newly constructed" includes, but is not limited to,
  9 24 structural replacement, additions that substantially increase
  9 25 the square footage, conversion into another class of property,
  9 26 and conversion from exempt property under section 427.1 to
  9 27 taxable property.  For commercial and industrial property,
  9 28 "newly constructed" also includes an addition or removal to a
  9 29 structure of personal property taxed as real estate under
  9 30 chapter 427A.
  9 31    d.  "Structure" means any part of that which is built or
  9 32 constructed, an edifice or building of any kind, or any piece
  9 33 of work artificially built up or composed of parts joined
  9 34 together in some definite manner, including any part located
  9 35 below ground.  "Structure" does not include the land beneath,
 10  1 or horizontal improvements relating to the structure, such as
 10  2 sidewalks, sewers, or retaining walls.
 10  3    7.  For the purpose of computing the debt limitations for
 10  4 municipalities, political subdivisions, and school districts,
 10  5 the term "actual value" means the "actual value" as determined
 10  6 under this section without application of any percentage
 10  7 reduction and entered opposite each item, and as listed on the
 10  8 tax list as provided in section 443.2, as "actual value".
 10  9    Whenever any board of review or other tribunal changes the
 10 10 assessed value of property, all applicable records of
 10 11 assessment shall be adjusted to reflect such change in both
 10 12 assessed value and actual value of such property.
 10 13    8.  The provisions of this chapter and chapters 443, 443A,
 10 14 and 444 shall be subject to legislative review at least once
 10 15 every five years.  The review shall be based upon a property
 10 16 tax status report containing the recommendations of a
 10 17 legislative interim committee appointed to conduct a review of
 10 18 the land tax, square footage tax, the baseline assessment for
 10 19 the square footage tax, and other related provisions, to be
 10 20 prepared with the assistance of the departments of management
 10 21 and revenue and finance.  The report shall include
 10 22 recommendations for changes or revisions based upon
 10 23 demographic changes and property tax valuation fluctuations
 10 24 observed during the preceding five=year interval, and a
 10 25 summary of issues that have arisen since the previous review
 10 26 and potential approaches for their resolution.  The first such
 10 27 report shall be submitted to the general assembly no later
 10 28 than January 1, 2010, with subsequent reports developed and
 10 29 submitted by January 1 at least every fifth year thereafter.
 10 30    Sec. 8.  NEW SECTION.  441.21A  PROPERTY CLASSIFICATIONS.
 10 31    1.  a.  Agricultural land shall be valued at its
 10 32 productivity value.  The productivity value of agricultural
 10 33 land shall be determined on the basis of productivity and net
 10 34 earning capacity of the land determined on the basis of its
 10 35 use for agricultural purposes capitalized at a rate of seven
 11  1 percent and applied uniformly among counties and among classes
 11  2 of property.  Any formula or method employed to determine
 11  3 productivity and net earning capacity of land shall be adopted
 11  4 in full by rule.
 11  5    b.  In counties or townships in which field work on a
 11  6 modern soil survey has been completed since January 1, 1949,
 11  7 the assessor shall place emphasis upon the results of the
 11  8 survey in spreading the valuation among individual parcels of
 11  9 such agricultural land.
 11 10    c.  "Agricultural land" includes the land of a vineyard.
 11 11    2.  a.  "Residential property" includes all lands and
 11 12 buildings which are primarily used or intended for human
 11 13 habitation, including those buildings located on agricultural
 11 14 land.  Buildings used primarily or intended for human
 11 15 habitation shall include the dwelling as well as structures
 11 16 and improvements used primarily as a part of, or in
 11 17 conjunction with, the dwelling.  This includes but is not
 11 18 limited to garages, whether attached or detached, tennis
 11 19 courts, swimming pools, guest cottages, and storage sheds for
 11 20 household goods.  Residential property located on agricultural
 11 21 land shall include only buildings.
 11 22    b.  Buildings for human habitation that are used its
 11 23 commercial ventures, including but not limited to hotels,
 11 24 motels, rest homes, and structures containing three or more
 11 25 separate living quarters shall not be considered residential
 11 26 property unless the rooms are generally rented or leased to
 11 27 the same individuals for more than thirty days.
 11 28    c.  "Residential property" includes all land and buildings
 11 29 of multiple housing cooperatives organized under chapter 499A
 11 30 and includes land and buildings used primarily for human
 11 31 habitation which land and buildings are owned and operated by
 11 32 organizations that have received tax=exempt status under
 11 33 section 501(c)(3) of the Internal Revenue Code and rental
 11 34 income from the property is not taxed as unrelated business
 11 35 income under section 422.33, subsection 1A.
 12  1    Sec. 9.  Section 441.22, Code 2003, is amended to read as
 12  2 follows:
 12  3    441.22  FOREST AND FRUIT=TREE RESERVATIONS.
 12  4    Forest and fruit=tree reservations fulfilling the
 12  5 conditions of sections 427C.1 to 427C.13 shall be exempt from
 12  6 taxation classified as recreational, preserve, and
 12  7 environmental property and subject to the land tax as provided
 12  8 in section 443A.1.  In all other cases where trees are planted
 12  9 upon any tract of land, without regard to area, for forest,
 12 10 fruit, shade, or ornamental purposes, or for windbreaks, the
 12 11 assessor shall not increase the valuation of  the property
 12 12 because of such improvements.
 12 13    Sec. 10.  Section 441.23, Code 2003, is amended to read as
 12 14 follows:
 12 15    441.23  NOTICE OF VALUATION.
 12 16    If there has been an increase or decrease in the valuation
 12 17 of the property, or upon the written request of the person
 12 18 assessed, the assessor shall, at the time of making the
 12 19 assessment, inform the person assessed, in writing, of the
 12 20 valuation put upon the taxpayer's property, and notify the
 12 21 person, if the person feels aggrieved, to appear before the
 12 22 board of review and show why the assessment should be changed.
 12 23 However, if the valuation of a class of property is uniformly
 12 24 decreased, the assessor may notify the affected property
 12 25 owners by publication in the official newspapers of the
 12 26 county.  The owners of real property shall be notified not
 12 27 later than April 15 of any adjustment of the real property
 12 28 assessment.
 12 29    Sec. 11.  Section 441.24, Code 2003, is amended to read as
 12 30 follows:
 12 31    441.24  REFUSAL TO FURNISH STATEMENT.
 12 32    1.  If a person refuses to furnish the verified statements
 12 33 required in connection with the assessment of property by the
 12 34 assessor, or to list the corporation's or person's property,
 12 35 the director of revenue and finance, or assessor, as the case
 13  1 may be, shall proceed to list and assess the property
 13  2 according to the best information obtainable, and shall add to
 13  3 the taxable agricultural land and square footage valuation one
 13  4 hundred percent thereof, which valuation and penalty shall be
 13  5 separately shown, and shall constitute the assessment; and if
 13  6 the agricultural land or square footage valuation of the
 13  7 property is changed by a board of review, or on appeal from a
 13  8 board of review, a like penalty shall be added to the
 13  9 valuation thus fixed.
 13 10    2.  However, all or part of the penalty imposed under this
 13 11 section may be waived by the board of review upon application
 13 12 to the board by the assessor or the property owner.  The
 13 13 waiver or reduction in the penalty shall be allowed only on
 13 14 the agricultural land or the square footage valuation of real
 13 15 property the structure against which the penalty has been
 13 16 imposed.
 13 17    Sec. 12.  Section 441.26, unnumbered paragraph 3, Code
 13 18 2003, is amended by striking the unnumbered paragraph.
 13 19    Sec. 13.  Section 441.26, unnumbered paragraphs 4 and 5,
 13 20 Code 2003, are amended to read as follows:
 13 21    The assessment rolls shall be used in listing the property,
 13 22 the structures, and the square footage of the structures, and
 13 23 showing the values affixed to agricultural land and the square
 13 24 footage values affixed to the property each structure of all
 13 25 persons assessed.  The rolls shall be made in duplicate.  The
 13 26 duplicate roll shall be signed by the assessor, detached from
 13 27 the original and delivered to the person assessed if there has
 13 28 been an increase or decrease in the valuation of the property.
 13 29 If there has been no change in the evaluation, the information
 13 30 on the roll may be printed on computer stock paper and
 13 31 preserved as required by this chapter.  If the person assessed
 13 32 requests in writing a copy of the roll, the copy shall be
 13 33 provided to the person.  The pages of the assessor's
 13 34 assessment book shall contain columns ruled and headed for the
 13 35 information required by this chapter and that which the
 14  1 director of revenue and finance deems essential in the
 14  2 equalization work of the director.  The assessor shall return
 14  3 all assessment rolls and schedules to the county auditor,
 14  4 along with the completed assessment book, as provided in this
 14  5 chapter, and the county auditor shall carefully keep and
 14  6 preserve the rolls, schedules and book for a period of five
 14  7 years from the time of its filing in the county auditor's
 14  8 office.
 14  9    Beginning with valuations for January 1, 1977 2006, and
 14 10 each succeeding year, for each parcel of agricultural property
 14 11 and for each structure entered in the assessment book, the
 14 12 assessor shall list the classification of the property.
 14 13    Sec. 14.  Section 441.35, subsection 1, Code 2003, is
 14 14 amended by striking the subsection.
 14 15    Sec. 15.  Section 441.35, unnumbered paragraph 2, Code
 14 16 2003, is amended by striking the unnumbered paragraph.
 14 17    Sec. 16.  Section 441.36, Code 2003, is amended to read as
 14 18 follows:
 14 19    441.36  CHANGE OF ASSESSMENT == NOTICE.
 14 20    All changes in assessments authorized by the board of
 14 21 review, and reasons therefor, shall be entered in the minute
 14 22 book kept by said the board and on the assessment roll.  Said
 14 23 The minute book shall be filed with the assessor after the
 14 24 adjournment of the board of review and shall at all times be
 14 25 open to public inspection.  In case the value of any specific
 14 26 property or structure or the entire assessment of any person,
 14 27 partnership, or association is increased, or new property or a
 14 28 new structure is added by the board, the clerk shall give
 14 29 immediate notice thereof by mail to each at the post=office
 14 30 address shown on the assessment rolls, and at the conclusion
 14 31 of the action of the board therein the clerk shall post an
 14 32 alphabetical list of those whose assessments are thus raised
 14 33 and added, in a conspicuous place in the office or place of
 14 34 meeting of the board, and enter upon the records a statement
 14 35 that such posting has been made, which entry shall be
 15  1 conclusive evidence of the giving of the notice required.  The
 15  2 board shall hold an adjourned meeting, with at least five days
 15  3 intervening after the posting of said the notices, before
 15  4 final action with reference to the raising of assessments or
 15  5 the adding of property or structures to the rolls is taken,
 15  6 and the posted notices shall state the time and place of
 15  7 holding such adjourned meeting, which time and place shall
 15  8 also be stated in the proceedings of the board.
 15  9    Sec. 17.  Section 441.37, subsection 1, paragraphs a and b,
 15 10 Code 2003, are amended to read as follows:
 15 11    a.  That said the assessment is not equitable as compared
 15 12 with assessments of other like property or structures in the
 15 13 taxing district.  When this ground is relied upon as the basis
 15 14 of a protest the legal description and assessments of a
 15 15 representative number of comparable properties structures, as
 15 16 described by the aggrieved taxpayer shall be listed on the
 15 17 protest, otherwise said the protest shall not be considered on
 15 18 this ground.
 15 19    b.  That the property or structure is assessed for more
 15 20 than the value authorized by law, stating the specific amount
 15 21 which the protesting party believes the property or structure
 15 22 to be overassessed, and the amount which the party considers
 15 23 to be its actual value and the amount the party considers a
 15 24 fair assessment.
 15 25    Sec. 18.  Section 441.39, Code 2003, is amended to read as
 15 26 follows:
 15 27    441.39  TRIAL ON APPEAL.
 15 28    The court shall hear the appeal in equity and determine
 15 29 anew all questions arising before the board which relate to
 15 30 the liability of the property or structure to assessment or
 15 31 the amount thereof.  The court shall consider all of the
 15 32 evidence and there shall be no presumption as to the
 15 33 correctness of the valuation of assessment appealed from.  Its
 15 34 decision shall be certified by the clerk of the court to the
 15 35 county auditor, and the assessor, who shall correct the
 16  1 assessment books accordingly.
 16  2    Sec. 19.  Section 441.42, Code 2003, is amended to read as
 16  3 follows:
 16  4    441.42  APPEAL ON BEHALF OF PUBLIC.
 16  5    Any officer of a county, city, township, drainage district,
 16  6 levee district, or school district interested or a taxpayer
 16  7 thereof may in like manner make complaint before said the
 16  8 board of review in respect to the assessment of any property
 16  9 or structure in the township, drainage district, levee
 16 10 district or city and an appeal from the action of the board of
 16 11 review in fixing the amount of assessment on any property or
 16 12 structure concerning which such complaint is made, may be
 16 13 taken by any of such aforementioned officers.
 16 14    Such appeal is in addition to the appeal allowed to the
 16 15 person whose property or structure is assessed and shall be
 16 16 taken in the name of the county, city, township, drainage
 16 17 district, levee district, or school district interested, and
 16 18 tried in the same manner, except that the notice of appeal
 16 19 shall also be served upon the owner of the property or
 16 20 structure concerning which the complaint is made and affected
 16 21 thereby or person required to return said property or
 16 22 structure for assessment.
 16 23    Sec. 20.  Section 441.43, Code 2003, is amended to read as
 16 24 follows:
 16 25    441.43  POWER OF COURT.
 16 26    Upon trial of any appeal from the action of the board of
 16 27 review fixing the amount of assessment upon any property or
 16 28 structure concerning which complaint is made, the court may
 16 29 increase, decrease, or affirm the amount of the assessment
 16 30 appealed from.
 16 31    Sec. 21.  Section 441.45, subsections 1 and 2, Code 2003,
 16 32 are amended to read as follows:
 16 33    1.  The number of acres of land and the aggregate taxable
 16 34 values of the agricultural land, exclusive of city lots,
 16 35 returned by the assessors, as corrected by the board of
 17  1 review.
 17  2    2.  The aggregate values of structures and the taxable
 17  3 square footage values of real estate structures by class in
 17  4 each township and city in the county and the aggregate value
 17  5 of agricultural land in each township and city in the county,
 17  6 returned as corrected by the board of review.
 17  7    Sec. 22.  Section 441.50, Code 2003, is amended to read as
 17  8 follows:
 17  9    441.50  APPRAISERS EMPLOYED.
 17 10    The conference board shall have power to employ appraisers
 17 11 or other technical or expert help to assist in the valuation
 17 12 assessment of property as provided in section 441.21, the cost
 17 13 thereof to be paid in the same manner as other expenses of the
 17 14 assessor's office.  The conference board may certify for levy
 17 15 annually an amount not to exceed forty and one=half cents per
 17 16 thousand dollars of assessed value of taxable property for the
 17 17 purpose of establishing a special appraiser's fund, to be used
 17 18 only for such purposes.  From time to time the conference
 17 19 board may direct the transfer of any unexpended balance in the
 17 20 special appraiser's fund to the assessment expense fund.
 17 21    Sec. 23.  Section 443.1, Code 2003, is amended to read as
 17 22 follows:
 17 23    443.1  CONSOLIDATED TAX.
 17 24    All square footage taxes which are uniform throughout any
 17 25 township or school district shall be formed into a single tax
 17 26 and entered upon the tax list in a single column, to be known
 17 27 as a consolidated tax, and each receipt shall show the
 17 28 percentage levied for each separate fund.  The land tax shall
 17 29 be separately stated and each receipt shall show the
 17 30 percentage levied for each separate fund.
 17 31    Sec. 24.  Section 443.2, Code 2003, is amended to read as
 17 32 follows:
 17 33    443.2  TAX LIST.
 17 34    Before the first day of July in each year, the county
 17 35 auditor shall transcribe the assessments of the townships and
 18  1 cities into a book or record, to be known as the tax list,
 18  2 properly ruled and headed, with separate columns, in which
 18  3 shall be entered the names of the taxpayers, descriptions of
 18  4 lands, number of acres and value, numbers of city lots, their
 18  5 size in acres, and value, and each description of the square
 18  6 footage tax and the land tax, with a column for polls and one
 18  7 for payments, and shall complete it by entering the amount due
 18  8 on each installment, separately, and carrying out the total of
 18  9 both installments.  The total of all columns of each page of
 18 10 each book or other record shall balance with the tax totals.
 18 11 After computing the amount of land tax and square footage tax
 18 12 due and payable on each property, the county auditor shall
 18 13 round the total amount of tax taxes due and payable on the
 18 14 property to the nearest even whole dollar.
 18 15    The county auditor shall list the aggregate actual value
 18 16 and the aggregate taxable value of all taxable property within
 18 17 the county and each political subdivision including property
 18 18 subject to the statewide property tax imposed under section
 18 19 437A.18 on the tax list in order that the actual value of the
 18 20 taxable property within the county or a political subdivision
 18 21 may be ascertained and shown by the tax list for the purpose
 18 22 of computing the debt=incurring capacity of the county or
 18 23 political subdivision.  As used in this section, "actual
 18 24 value" is the value determined under section 441.21,
 18 25 subsections 1 to 3, Code 2005, prior to the reduction to a
 18 26 percentage of actual value as otherwise provided in section
 18 27 441.21, Code 2005.  "Actual value" of property subject to
 18 28 statewide property tax is the assessed value under section
 18 29 437A.18.
 18 30    Sec. 25.  Section 443.3, Code 2003, is amended to read as
 18 31 follows:
 18 32    443.3  CORRECTION == TAX APPORTIONED.
 18 33    At the time of transcribing said the assessments into the
 18 34 tax list, the county auditor shall correct all transfers up to
 18 35 date and place the legal descriptions of all real estate in
 19  1 the name of the owner at said that date as shown by the
 19  2 transfer book in the auditor's office.  At the end of the list
 19  3 for each township or city the auditor shall make an abstract
 19  4 thereof, and apportion the consolidated tax among the
 19  5 respective funds to which it belongs, according to the amounts
 19  6 levied for each.  The auditor shall apportion the land tax as
 19  7 prescribed in section 443A.2.
 19  8    Sec. 26.  Section 443.6, Code 2003, is amended to read as
 19  9 follows:
 19 10    443.6  CORRECTIONS BY AUDITOR.
 19 11    The auditor may correct any error in the assessment or tax
 19 12 list, and the assessor or auditor may list for taxation any
 19 13 omitted land and may assess and list for taxation any omitted
 19 14 property structure.
 19 15    Sec. 27.  Section 443.7, Code 2003, is amended to read as
 19 16 follows:
 19 17    443.7  NOTICE.
 19 18    Before listing for taxation any omitted land and before
 19 19 assessing and listing for taxation any omitted property
 19 20 structure, the assessor or auditor shall notify by mail the
 19 21 person in whose name the property land or structure is taxed,
 19 22 to appear before the assessor or auditor at the assessor's or
 19 23 auditor's office within ten days from the date of the notice
 19 24 and show cause, if any, why the correction or assessment
 19 25 should not be made.
 19 26    Sec. 28.  Section 443.9, Code 2003, is amended to read as
 19 27 follows:
 19 28    443.9  ADJUSTMENT OF ACCOUNTS.
 19 29    If such correction or assessment is made after the books or
 19 30 other records approved by the state auditor of state have
 19 31 passed into the hands of the treasurer, the treasurer shall be
 19 32 charged or credited therefor as the case may be.  In the event
 19 33 such listing of omitted land or listing and assessment of
 19 34 omitted property structure is made by the assessor after the
 19 35 tax records have passed into the hands of the auditor or
 20  1 treasurer, such correction or assessment shall be entered on
 20  2 the records by the auditor or treasurer.
 20  3    Sec. 29.  Section 443.12, Code 2003, is amended to read as
 20  4 follows:
 20  5    443.12  CORRECTIONS BY TREASURER.
 20  6    When property land or a structure subject to taxation is
 20  7 withheld, overlooked, or from any other cause is not listed,
 20  8 or is not listed and assessed, the county treasurer shall,
 20  9 when apprised thereof, at any time within two years from the
 20 10 date at which such listing and assessment should have been
 20 11 made, demand of the person, firm, corporation, or other party
 20 12 by whom the same should have been listed, or to whom it should
 20 13 have been listed and assessed, or of the administrator
 20 14 thereof, the amount the property land or structure should have
 20 15 been taxed in each year the same was so withheld or overlooked
 20 16 and not listed or not listed and assessed, together with six
 20 17 percent interest thereon from the time the taxes would have
 20 18 become due and payable had such property land been listed or
 20 19 such structure been listed and assessed.
 20 20    Sec. 30.  Section 443.13, Code 2003, is amended to read as
 20 21 follows:
 20 22    443.13  ACTION BY TREASURER == APPORTIONMENT.
 20 23    Upon failure to pay such sum within thirty days, with all
 20 24 accrued interest, the treasurer shall cause an action to be
 20 25 brought in the name of the treasurer for the use of the proper
 20 26 county, to be prosecuted by the county attorney, or such other
 20 27 person as the board of supervisors may appoint, and when such
 20 28 property land has been fraudulently withheld from listing or
 20 29 such structure fraudulently withheld from listing and
 20 30 assessment, there shall be added to the sum found to be due a
 20 31 penalty of fifty percent upon the amount, which shall be
 20 32 included in the judgment.  The amount thus recovered shall be
 20 33 by the treasurer apportioned ratably as the taxes would have
 20 34 been if they had been paid according to law.
 20 35    Sec. 31.  Section 443.14, Code 2003, is amended to read as
 21  1 follows:
 21  2    443.14  DUTY OF TREASURER.
 21  3    The treasurer shall assess any real property structure and
 21  4 shall list the acreage of any land subject to taxation which
 21  5 may have been omitted by the assessor, board of review, or
 21  6 county auditor, and collect taxes thereon, and in such cases
 21  7 shall note, opposite the tract or lot assessed, the words "by
 21  8 treasurer".
 21  9    Sec. 32.  Section 443.15, Code 2003, is amended to read as
 21 10 follows:
 21 11    443.15  TIME LIMIT.
 21 12    The assessment shall be made within two years after the tax
 21 13 list shall have been delivered to the treasurer for
 21 14 collection, and not afterwards, if the property land or
 21 15 structure is then owned by the person who should have paid the
 21 16 tax.
 21 17    Sec. 33.  Section 443.17, Code 2003, is amended to read as
 21 18 follows:
 21 19    443.17  PRESUMPTION OF TWO=YEAR OWNERSHIP.
 21 20    In any action or proceeding, now pending or hereafter
 21 21 brought, to recover taxes upon property land not listed or
 21 22 agricultural land or a structure not listed and assessed for
 21 23 taxation during the lifetime of any decedent, it shall be
 21 24 presumed that any property, any evidence of ownership of
 21 25 property, and any evidence of a promise to pay, owned by a
 21 26 decedent at the date of the decedent's death, had been
 21 27 acquired and owned by such decedent more than two years before
 21 28 the date of the decedent's death; and the burden of proving
 21 29 that any such property had been acquired by such decedent less
 21 30 than two years before the date of the decedent's death shall
 21 31 be upon the heirs, legatees, and legal representatives of any
 21 32 such decedent.
 21 33    Sec. 34.  Section 443.18, Code 2003, is amended to read as
 21 34 follows:
 21 35    443.18  REAL ESTATE == DUTY OF OWNER.
 22  1    In all cases where real estate land subject to taxation has
 22  2 not been listed or agricultural land or a structure subject to
 22  3 taxation has not been listed and assessed, the owner, or an
 22  4 agent of the owner, shall have the same done by the treasurer,
 22  5 and pay the taxes thereon; and if the owner fails to do so the
 22  6 treasurer shall list or list and assess the same and collect
 22  7 the tax assessed as the treasurer does other taxes.
 22  8    Sec. 35.  Section 443.19, Code 2003, is amended to read as
 22  9 follows:
 22 10    443.19  IRREGULARITIES, ERRORS AND OMISSIONS == EFFECT.
 22 11    No A failure of the owner to have such property land listed
 22 12 or agricultural land or structure listed and assessed or to
 22 13 have the errors in the listing or assessment corrected, and no
 22 14 an irregularity, error or omission in the listing of such land
 22 15 or listing and assessment of such property agricultural land
 22 16 or structure, shall not affect in any manner the legality of
 22 17 the taxes levied thereon, or affect any right or title to such
 22 18 real estate property which would have accrued to any party
 22 19 claiming or holding under and by virtue of a deed executed by
 22 20 the treasurer as provided by this title, had the listing and
 22 21 assessment of such property been in all respects regular and
 22 22 valid.
 22 23    Sec. 36.  Section 443.21, Code 2003, is amended to read as
 22 24 follows:
 22 25    443.21  ASSESSMENTS CERTIFIED TO COUNTY AUDITOR.
 22 26    All assessors and assessing bodies, including the
 22 27 department of revenue and finance having authority over the
 22 28 listing of land or listing and assessment of property
 22 29 agricultural land and structures for tax purposes shall
 22 30 certify to the county auditor of each county the number of
 22 31 acres of land and the assessed values of agricultural land and
 22 32 structures for all the taxable property in such county as
 22 33 finally equalized and determined, and the same shall be
 22 34 transcribed onto the tax lists as required by section 443.2.
 22 35    Sec. 37.  Section 443.22, Code 2003, is amended to read as
 23  1 follows:
 23  2    443.22  UNIFORM ASSESSMENTS MANDATORY.
 23  3    All assessors and assessing bodies, including the
 23  4 department of revenue and finance having authority over the
 23  5 listing of land and listing and assessment of property
 23  6 agricultural land and structures for tax purposes, shall
 23  7 comply with sections 428.4, 428.29, 434.15, 438.13, 441.21,
 23  8 and 441.45.  The department of revenue and finance, having
 23  9 authority over the listing and assessments, shall exercise its
 23 10 powers and perform its duties under section 421.17 and other
 23 11 applicable laws so as to require the uniform and consistent
 23 12 application of said that section.
 23 13    Sec. 38.  NEW SECTION.  443A.1  LAND TAX.
 23 14    1.  Effective for the fiscal year beginning July 1, 2007,
 23 15 and all subsequent fiscal years, a land tax shall be imposed
 23 16 against each acre or portion of an acre of land in a county.
 23 17    2.  a.  The rate of the land tax in a county equals the
 23 18 product of the base year amount times the classification
 23 19 factor for each acre or portion of an acre of land in the
 23 20 county as specified in subsection 3.  The rate of the land tax
 23 21 shall be expressed in dollars and cents per acre.
 23 22    b.  "Base year amount" means the average annual amount of
 23 23 tax dollars levied by the county against an acre of
 23 24 agricultural property for the five fiscal years in the fiscal
 23 25 period beginning July 1, 2001, and ending June 30, 2006.
 23 26    3.  The classification factor for an acre or portion of an
 23 27 acre is the following:
 23 28    a.  For land classified as residential:  one.
 23 29    b.  For land classified as commercial and industrial:  one.
 23 30    c.  For land classified as utility:  one.
 23 31    d.  For land classified as recreational, preserve, and
 23 32 environmental:  one=fourth.
 23 33    e.  For land classified as agricultural, the factor shall
 23 34 be determined for each parcel based upon its productivity
 23 35 value and shall be adjusted annually as follows:
 24  1    (1)  Correlate each parcel of agricultural land in the
 24  2 county according to the productivity value established for the
 24  3 assessment year beginning January 1, 2004, with the highest
 24  4 value given a base factor of one and each other parcel given a
 24  5 relative base factor equal to a percentage of one.
 24  6    (2)  For the assessment year beginning January 1, 2006, and
 24  7 subsequent assessment years, the classification factor for a
 24  8 parcel of agricultural land for the assessment year equals the
 24  9 number computed by dividing the productivity value of the land
 24 10 for the assessment year by the productivity value of the land
 24 11 for the assessment year beginning January 1, 2004, and
 24 12 multiplying the quotient by the base factor for the parcel as
 24 13 determined in subparagraph (1).
 24 14    Sec. 39.  NEW SECTION.  443A.2  APPORTIONMENT OF LAND TAX.
 24 15    1.  The land tax for each county shall be apportioned as
 24 16 follows:
 24 17    In the unincorporated area of the county, the land tax
 24 18 shall be distributed to the county, the school district
 24 19 located in the unincorporated area of the county, and other
 24 20 taxing entities located in the unincorporated area of the
 24 21 county in the same proportion that property taxes levied in
 24 22 the unincorporated area of the county for the fiscal year
 24 23 beginning July 1, 2006, were allocated to those entities.
 24 24    In the incorporated areas of the county, the land tax shall
 24 25 be distributed to the city, the county, each school district
 24 26 located within the city, and other taxing entities located
 24 27 within the city in the same proportion that property taxes
 24 28 levied in the city for the fiscal year beginning July 1, 2006,
 24 29 were allocated to those entities.
 24 30    2.  The city finance committee and the county finance
 24 31 committee shall jointly determine the adjustments to be made
 24 32 to the allocation of the land tax in the case of boundary
 24 33 adjustments made to a taxing district on or after January 1,
 24 34 2006.
 24 35    3.  After the auditor has computed the amount of land tax
 25  1 to be distributed to each taxing district, the auditor shall
 25  2 compute the rate of tax to be levied upon the square footage
 25  3 valuation of structures pursuant to chapter 444.
 25  4    Sec. 40.  Section 444.1, Code 2003, is amended to read as
 25  5 follows:
 25  6    444.1  BASIS FOR AMOUNT OF TAX.
 25  7    In all taxing districts in the state, including townships,
 25  8 school districts, cities and counties, when by law then
 25  9 existing the people are authorized to determine by vote, or
 25 10 officers are authorized to estimate or determine, a rate of
 25 11 taxation required for any public purpose, such rate shall in
 25 12 all cases be estimated and based upon the amount of land tax
 25 13 available to the district and the adjusted taxable square
 25 14 footage valuation of such taxing district for the preceding
 25 15 calendar year.
 25 16    Sec. 41.  Section 444.2, Code 2003, is amended to read as
 25 17 follows:
 25 18    444.2  AMOUNTS CERTIFIED IN DOLLARS.
 25 19    When an authorized square footage tax rate within a taxing
 25 20 district, including townships, school districts, cities and
 25 21 counties, has been thus determined as provided by law, the
 25 22 officer or officers charged with the duty of certifying the
 25 23 authorized rate to the county auditor or board of supervisors
 25 24 shall, before certifying the rate, compute upon the adjusted
 25 25 taxable square footage valuation of the taxing district for
 25 26 the preceding fiscal year, the amount of tax the rate will
 25 27 raise, stated in dollars, and shall certify the computed
 25 28 amount in dollars and not by rate, to the county auditor and
 25 29 board of supervisors and shall further certify the percentage
 25 30 of such amount to be levied against each class of property.
 25 31    Sec. 42.  Section 444.3, Code 2003, is amended to read as
 25 32 follows:
 25 33    444.3  COMPUTATION OF SQUARE FOOTAGE RATE.
 25 34    When the square footage valuations for the several taxing
 25 35 districts shall have been adjusted by the several boards for
 26  1 the current year, and the amount of land tax to be distributed
 26  2 to each taxing district has been deducted from the dollar
 26  3 amounts certified in section 444.2 for each taxing district,
 26  4 the county auditor shall thereupon apply such a rate, not
 26  5 exceeding the rate authorized by law, or rates as will raise
 26  6 the amount required for such taxing district, and when
 26  7 combined with the land tax amount will raise an amount not
 26  8 exceeding the dollar amount authorized by law for the taxing
 26  9 district, and no will not raise a larger amount.  For purposes
 26 10 of computing the square footage rate under this section, the
 26 11 adjusted taxable square footage valuation of the property of a
 26 12 taxing district does not include the valuation of property of
 26 13 a railway corporation or its trustee which corporation has
 26 14 been declared bankrupt or is in bankruptcy proceedings.
 26 15 Nothing in the preceding sentence exempts the property of such
 26 16 railway corporation or its trustee from taxation and the rate
 26 17 computed under this section shall be levied on the taxable
 26 18 property of such railway corporation or its trustee.
 26 19    The square footage tax rate shall be expressed in dollars
 26 20 and cents per one hundred dollars of valuation per square
 26 21 foot.
 26 22    Sec. 43.  NEW SECTION.  444.9  COMPUTATION OF TAX.
 26 23    The amount of tax imposed on any taxable property is the
 26 24 sum of the amounts computed in subsections 1 and 2.
 26 25    1.  LAND TAX.  The product of the land tax rate times the
 26 26 classification factor times the number of acres or portion of
 26 27 an acre of the taxable property.
 26 28    2.  SQUARE FOOTAGE TAX.  The product of the square footage
 26 29 tax rate times the valuation per square foot of the taxable
 26 30 structure times the number of square feet of the taxable
 26 31 structure.  The square footage tax shall be computed
 26 32 separately for each structure located on the land.
 26 33    Sec. 44.  Sections 425.16 through 425.40, section 426A.11,
 26 34 sections 441.47 through 441.49, and section 441.72, Code 2003,
 26 35 are repealed.
 27  1    Sec. 45.  Sections 422.4 through 422.31, Code 2003, are
 27  2 repealed.
 27  3    Sec. 46.  Chapters 425A and 426, Code 2003, are repealed.
 27  4    Sec. 47.  EFFECTIVE AND APPLICABILITY DATES.
 27  5    1.  Section 45 of this Act, relating to the personal net
 27  6 income tax, takes effect March 1, 2005, and applies to tax
 27  7 years beginning on or after January 1, 2007.
 27  8    2.  The remainder of this Act takes effect July 1, 2005,
 27  9 and applies to assessment years beginning on or after January
 27 10 1, 2006, and applies to tax collections for fiscal years
 27 11 beginning on or after July 1, 2007.
 27 12                           EXPLANATION
 27 13    This bill changes the method by which property is assessed
 27 14 and taxed for property tax purposes and provides for the
 27 15 future repeal of current Code provisions relating to the
 27 16 personal net income tax.
 27 17    The bill provides that, for assessment years beginning on
 27 18 or after January 1, 2006, all taxable structures shall be
 27 19 assessed for taxation on a square=footage basis.  The assessed
 27 20 value per square foot is equal to the valuation of the
 27 21 structure as determined for the assessment year beginning
 27 22 January 1, 2005, prior to application of the assessment
 27 23 limitation (i.e., rollback) for that year divided by the total
 27 24 number of square feet of the structure as of January 1, 2005.
 27 25 The bill provides that if an existing structure is purchased
 27 26 after January 1, 2005, the assessed value per square foot
 27 27 shall be the purchase price divided by a cumulative inflation
 27 28 factor, divided by the total number of square feet of the
 27 29 structure as of January 1 of the assessment year.  The bill
 27 30 allows the assessor to adjust the purchase price to reflect
 27 31 arm's=length transactions and market value, and to factor out
 27 32 the relative value of the land that was included in the
 27 33 purchase price.  The bill further provides that if a structure
 27 34 is newly constructed after January 1, 2005, the assessed value
 27 35 per square foot of the structure shall be the value of the
 28  1 structure as determined by the assessor divided by the
 28  2 cumulative inflation factor, divided by the total number of
 28  3 square feet of the newly constructed structure.
 28  4    The bill defines "annual inflation factor", "cumulative
 28  5 inflation factor", and "structure".
 28  6    The bill strikes provisions relating to percentage
 28  7 assessment limitations and to equalization of values by the
 28  8 department of revenue and finance.
 28  9    The bill retains the homestead credit and provides that the
 28 10 credit shall be equal to 5 percent of the actual levy on the
 28 11 homestead, subject to a minimum credit of $62.50 per
 28 12 homestead.  The bill retains the military service property tax
 28 13 credit and provides that the credit shall be equal to 1.75
 28 14 percent of the actual levy on the property.  The bill repeals
 28 15 the extraordinary credit for persons who are low income and
 28 16 low=income elderly and disabled, the family farm tax credit,
 28 17 and the agricultural land tax credit.
 28 18    The bill creates a land tax to be imposed on each taxable
 28 19 acre or portion of acre in each county.  The land tax is
 28 20 computed per county and is equal to the average annual amount
 28 21 of tax dollars levied by the county against an acre of
 28 22 agricultural property for the five fiscal years in the fiscal
 28 23 period beginning July 1, 2001, and ending June 30, 2006, times
 28 24 a classification factor for the different classes of property.
 28 25 All classes have a classification factor of 1, except for the
 28 26 recreational, preserve, and environmental class that has a
 28 27 factor of .25 and the agricultural land class that varies
 28 28 depending upon the productivity value of the land.  The land
 28 29 tax is allocated to the taxing districts in the county in the
 28 30 same proportion that property taxes levied for the fiscal year
 28 31 beginning July 1, 2006, were allocated to the taxing
 28 32 districts.
 28 33    The bill provides that the amount of land tax allocated to
 28 34 a taxing district shall be deducted from the property tax
 28 35 dollars certified by a taxing district before the county
 29  1 auditor computes the tax rate per square foot for taxable
 29  2 structures.
 29  3    The bill provides that current maximum statutory property
 29  4 tax levy rates shall be multiplied by the property valuation
 29  5 subject to tax for the assessment year beginning January 1,
 29  6 2005, to arrive at a maximum dollar amount that may be
 29  7 collected from the land tax and the square footage tax for any
 29  8 one taxing district.
 29  9    The bill repeals Code provisions relating to the personal
 29 10 net income tax on March 1, 2005, applicable to tax years
 29 11 beginning on or after January 1, 2007.
 29 12    With respect to the property tax, the bill takes effect
 29 13 July 1, 2005, and applies to assessment years beginning on or
 29 14 after January 1, 2006, and applies to tax collections for
 29 15 fiscal years beginning on or after July 1, 2007.
 29 16    Additional conforming amendments to the Code of Iowa will
 29 17 be necessary to fully implement the provisions of the bill.
 29 18 LSB 3432YC 80
 29 19 sc/cf/24.1