Read the full stored bill text
Senate
File
598
-
Introduced
SENATE
FILE
598
BY
COMMITTEE
ON
LOCAL
GOVERNMENT
(SUCCESSOR
TO
SSB
1180)
A
BILL
FOR
An
Act
relating
to
the
assessment
of
certain
development
1
property,
and
including
effective
date
and
retroactive
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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598
Section
1.
Section
441.72,
Code
2025,
is
amended
to
read
as
1
follows:
2
441.72
Assessment
of
platted
lots
and
development
property
.
3
1.
Except
as
provided
in
subsection
2
,
when
a
subdivision
4
plat
is
recorded
pursuant
to
chapter
354
,
the
individual
lots
5
within
the
subdivision
plat
shall
continue
to
be
classified
6
and
assessed
for
taxation
in
the
manner
the
property
was
prior
7
to
the
recording
of
the
plat
and
the
individual
lots
shall
not
8
be
assessed
in
excess
of
the
total
assessment
of
the
land
as
9
acreage
or
unimproved
property
.
The
assessor
shall
not
change
10
the
classification
or
assessment
of
the
individual
lots
for
11
five
years
after
the
recording
of
the
plat
or
until
the
lot
is
12
actually
improved
with
permanent
construction,
whichever
occurs
13
first.
When
an
individual
lot
has
been
improved
with
permanent
14
construction,
the
lot
shall
be
assessed
for
taxation
purposes
15
as
provided
in
chapter
428
and
this
chapter
.
16
2.
For
subdivision
plats
recorded
pursuant
to
chapter
17
354
on
or
after
January
1,
2004,
but
before
January
1,
2011,
18
the
individual
lots
within
the
subdivision
plat
shall
not
19
be
assessed
in
excess
of
the
total
assessment
of
the
land
20
as
acreage
or
unimproved
property
for
eight
years
after
the
21
recording
of
the
plat
or
until
the
lot
is
actually
improved
22
with
permanent
construction,
whichever
occurs
first.
When
an
23
individual
lot
has
been
improved
with
permanent
construction,
24
the
lot
shall
be
assessed
for
taxation
purposes
as
provided
in
25
chapter
428
and
this
chapter
.
26
a.
Unless
the
owner
elects
to
withdraw
the
property
from
the
27
classification
and
assessment
provisions
of
this
subsection,
28
property
acquired
for
development
on
or
after
January
1,
2020,
29
or
property
owned
for
development
upon
which
development
30
activities
occur
on
or
after
January
1,
2020,
shall
continue
31
to
be
classified
and
assessed
for
taxation
in
the
manner
the
32
property
was
prior
to
the
acquisition
or
commencement
of
33
development
activities.
The
assessor
shall
not
change
the
34
classification
or
assessment
of
the
property
or
a
lot
on
the
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598
property
while
development
is
occurring
until
the
property
or
1
lot
is
improved
with
a
new
permanent
structure
or
is
sold.
2
Upon
the
occurrence
of
one
or
more
such
events,
the
property
3
or
lot
shall
be
assessed
for
taxation
purposes
as
provided
in
4
chapter
428
and
this
chapter.
5
b.
If
the
owner
of
property
described
in
paragraph
“a”
6
elects
to
withdraw
the
property
from
the
provisions
of
7
paragraph
“a”
,
the
owner
shall
notify
the
assessor.
The
8
notification
must
be
provided
to
the
assessor
no
later
than
9
March
1
of
the
assessment
year
for
which
the
owner
elects
to
10
withdraw
the
property.
The
property
or
lot
that
has
been
11
withdrawn
shall
be
subject
to
subsection
1,
if
applicable.
12
c.
As
used
in
this
subsection,
“development”
means
any
of
13
the
following:
14
(1)
A
reconstruction
or
alteration
of
the
size
or
material
15
change
in
the
external
appearance
of
an
existing
structure
on
16
a
lot.
17
(2)
A
change
in
the
intensity
of
the
use
of
lots
or
a
change
18
in
zoning,
including
an
increase
in
the
number
of
dwelling
19
units
in
an
existing
structure,
or
further
subdividing
the
20
lots
to
increase
the
number
of
dwelling
units,
commercial
21
structures,
manufacturing
establishments,
or
offices.
22
(3)
Clearing
the
lots
in
anticipation
of
construction.
23
(4)
Depositing
fill
dirt
on
the
lots
in
anticipation
of
24
construction.
25
(5)
Installing
streets
and
public
utilities
on
the
lots.
26
3.
This
section
does
not
apply
to
special
assessment
levies.
27
Sec.
2.
REPEAL.
Section
405.1,
Code
2025,
is
repealed.
28
Sec.
3.
IMPLEMENTATION.
Nothing
in
this
Act
shall
be
29
construed
to
require
the
refund
or
modification
of
property
30
taxes
that
are
attributable
to
assessment
years
beginning
31
before
January
1,
2025,
or
the
adjustment
of
property
32
assessments
for
assessment
years
beginning
before
January
1,
33
2025.
34
Sec.
4.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
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598
importance,
takes
effect
upon
enactment.
1
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
Act
applies
2
retroactively
to
assessment
years
beginning
on
or
after
January
3
1,
2025.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
repeals
Code
section
405.1,
which
authorizes
a
8
county
board
of
supervisors
to
adopt
an
ordinance
providing
9
that
property
acquired
and
subdivided
for
development
of
10
housing
shall
continue
to
be
assessed
for
taxation
in
the
11
manner
that
it
was
prior
to
the
acquisition
for
housing
until
12
the
lot
is
sold
for
construction
or
occupancy
of
housing
or
13
five
years
from
the
date
of
subdivision,
whichever
is
shorter.
14
Code
section
405.1
also
authorizes
time
extensions
of
certain
15
ordinances
that
affect
the
assessment
of
property
subdivided
16
for
development
of
housing
and
authorizes
the
time
extensions
17
of
certain
ordinances
by
counties
and
by
cities
in
the
portion
18
of
the
applicable
area
located
in
the
incorporated
area
of
19
the
city.
Additionally,
the
Code
section
authorizes
cities
20
and
counties
to
adopt,
amend,
or
extend
such
ordinances
and
21
provides
that
property
acquired
and
subdivided
for
development
22
of
housing
shall
continue
to
be
assessed
for
taxation
and
taxed
23
in
the
manner
it
was
prior
to
its
acquisition
for
housing
until
24
the
lot
is
sold
for
construction
or
occupancy
of
housing.
25
Code
section
441.72
provides
that
a
platted
lot
for
which
26
a
subdivision
plat
was
recorded
is
assessed
for
property
tax
27
purposes
as
acreage
or
unimproved
property
for
five
years
or
28
until
the
lot
is
actually
improved
with
permanent
construction,
29
whichever
occurs
first.
However,
for
subdivision
plats
30
recorded
on
or
after
January
1,
2004,
but
before
January
1,
31
2011,
the
time
limit
is
eight
years.
32
The
bill
modifies
Code
section
441.72(1)
relating
to
the
33
five-year
limitation
by
specifying
when
a
subdivision
plat
34
is
recorded,
the
individual
lots
within
the
subdivision
plat
35
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598
shall
continue
to
be
classified
and
assessed
for
taxation
in
1
the
manner
the
property
was
prior
to
the
recording
of
the
2
plat
for
five
years
or
until
the
lot
is
actually
improved
3
with
permanent
construction,
whichever
occurs
first.
The
4
bill
strikes
portions
of
Code
section
441.72(2)
relating
to
5
the
eight-year
limitation.
The
bill
provides
that,
unless
6
the
owner
elects
to
withdraw
the
property
from
the
provisions
7
established
in
the
bill,
for
property
acquired
for
development
8
on
or
after
January
1,
2020,
or
property
owned
for
development
9
upon
which
development
activities
occur
on
or
after
January
10
1,
2020,
such
property
shall
continue
to
be
classified
and
11
assessed
for
taxation
in
the
same
manner
as
the
property
12
was
prior
to
the
acquisition
or
commencement
of
development
13
activities,
the
assessor
shall
not
change
the
classification
14
and
assessment
of
the
property
or
a
lot
on
the
property
while
15
development
is
occurring
until
the
property
or
lot
is
improved
16
with
a
new
permanent
structure
or
is
sold.
The
bill
allows
17
owners
of
such
property
to
withdraw
the
property
from
this
18
new
provision.
If
such
an
election
is
made,
the
property
is
19
subject
to
the
assessment
and
classification
provisions
in
Code
20
section
441.71(1),
as
amended
in
the
bill.
21
The
bill
defines
“development”
to
include
reconstruction,
22
zoning
changes,
clearing
lots,
depositing
fill
dirt,
and
23
installing
streets
and
public
utilities
on
the
lots.
24
The
bill
specifies
nothing
shall
be
construed
to
require
the
25
refund
or
modification
of
property
taxes
that
are
attributable
26
to
assessment
years
beginning
before
January
1,
2025,
or
27
the
adjustment
of
property
assessments
for
assessment
years
28
beginning
before
January
1,
2025.
29
The
bill
takes
effect
upon
enactment
and
applies
30
retroactively
to
assessment
years
beginning
on
or
after
January
31
1,
2025.
32
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