Senate File 295 contained seven divisions pertaining
to property taxes and income taxes for
Iowans. Several of these divisions directly
impact the day-to-day operations of the Assessor's
Office.
The divisions which Assessors are directly involved
include: Division I (Business Property
Tax Credit), Division III (Multi Residential Classification), and Division VI (Property Assessment
Appeal Board).
Divisions which do not directly impact the local
Assessor, but which he/she must have
knowledge of are: Division II (Property Assessment
Limitation and Replacement) and Division
IV (Telecommunications Company Property
Taxation).
Divisions V and VII are mentioned.
However, they do not affect the operations of the local Assessor's Office.
The Business Property Tax Credit (BPTC) is a credit
against taxes based on valuaion, for commercial,
industrial, and railroad property. For BPTC applications
received and approved by January 15, 2014, the
credit will be applied to the 2013 assessment and
therefore calculated as a credit on the Fall 2014 and
Spring 2015 property tax statement. For all future
years, the deadline for applying in the local assessor's
office, is March 15th.
Property owners may claim and receive one credit for
each eligible parcel unless the parcel is a part of a
property unit for which a credit is claimed. A property
unit is defined in the law as "contiguous parcels all
of which are located within the same county, with
the same property tax classification, are owned by
the same person, and operated by that person for a
common use and purpose." Eligible parcels, or property
units, must be classified and taxed as commercial,
industrial, or railroad property.
The law excluded properties which will be reclassified
to the new multi-residential classification in 2015.
These property types include: mobile home parks,
manufactured home communities, land-leased communities,
assisted living facilities (as defined in section
441.21, subsection 13, enacted in this law), and
any property primarily used or intended for human
habitation containing three or more separate dwelling
units. Therefore, apartment buildings, dwellings
converted to 3 or more apartments, and Section 42
Housing are excluded. Also excluded, are residential
and agricultural properties that may have home businesses
or are rental properties.
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Changed the limitation in increases for agricultural
and residential property from 4% to 3% for
statewide valuation.
Created a rollback for commercial and industrial
property beginning with 2013 valuation. The 2013
assessment rollback is 95%; the 2014 and future
assessment rollbacks are 90%.
Created a tax replacement claim for commercial and
industrial property. It is based on the difference
between the assessed valuation of all commercial
and industrial property used to calculate taxes and
the actual value of all commercial and industrial
property subject to assessment and taxation. If the
difference is zero, there is no tax replacement.
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Created a new classification for assessment and taxation
purposes beginning with the 2015 assessment.
The multi-residential classification applies to mobile home
parks, manufactured home communities, land-leased
communities, assisted living facilities, (as defined in section
441.21, subsection 13, enacted in this law), and any
property intended for human habitation containing 3 or
more separate dwelling units (apartment buildings, etc.).
Allowed for dual classification on a single parcel when a
portion of a building is used for human habitation, regardless
of the number of dwelling units. That portion of the
building used for human habitation will be classified multi
-residential, and the remaining portion will be classified
based on it's primary use.
Created a graduated rollback for multi-residential property
until it equals the residential rollback in 2022. For Example:
an Apartment building assessed at $100,000:
| |
Taxable Value |
| 2013 - 95% |
$95,000 |
| 2014 - 90% |
$90,000 |
| 2015 - 86.25% |
$86,250 |
| 2016 - 82.5% |
$82,500 |
| 2017 - 78.75% |
$78,750 |
| 2018 - 75% |
$75,000 |
| 2019 - 71.25% |
$71,250 |
| 2020 - 67.5% |
$67,500 |
| 2021 - 63.75% |
$63,750 |
| 2022 is equal to residential rollback |
|
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Provided a partial exemption beginning with the 2013 assessments.
The percentage of exemption will depend on the actual value of each company's property within the state.
For 2013, the percentage will range from 10% to 20%.
For 2014 and thereafter, the percentage will range from 20% to 40%.
An exemption value per mile will be determined.
Created a 'Property Taxation of Telecommunications Companies Study'. The study will include
representatives from the Department of Revenue,
Department of Management and telecommunication companies. The purpose is to analyze the current
system of assessing telecommunication company
property, levying property taxes and then make
recommendations for changes.
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Created a trust fund tax credit for individuals income taxes.
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Made changes to the Property Assessment Appeal
Board (PAAB) as well as the Board of Review (BOR)
as follows:
Required two members of PAAB to be certified real
property appraisers.
Allowed for electronic filing of PAAB appeals.
Clarified the filing date of appeals to PAAB; they
must be filed within 20 days of Board of Review
adjournment or May 31st, whichever is later.
Allowed PAAB appeals to be considered by one or
more PAAB board member.
Burden of proof shall be on complainant unless
offers competent evidence from two disinterested
witnesses concerning market value.
Extended the sunset date of PAAB from July 1, 2013
to July 1, 2018.
Changed the assessment notification date from
April 15th to April 1st.
Created an informal assessment review period.
Between April 1st and May 4th an owner may contact
the Assessor to request an informal review of
their assessment.
Changed the dates in which a protest may be filed
from April 16th through May 5th to April 7th
through May 5th.
Expanded the types of errors which may be protested
to the BOR. The code previously referred to
clerical and mathematical errors and it now includes
listing or other errors.
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Changed the current 7% reduction to the match the
federal earned income tax credit.
- 2013 credit is 14%.
- 2014 and forward, the credit is 15%.
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This information was prepared by the Public Relations/ Editorial Committee
of the Iowa State Association of Assessors.(2014)
Hancock County Assessor
