Bill > SF598

Introduced Session

This bill repeals Code section 405.1, which authorizes a county board of supervisors to adopt an ordinance providing that property acquired and subdivided for development of housing shall continue to be assessed for taxation in the manner that it was prior to the acquisition for housing until the lot is sold for construction or occupancy of housing or five years from the date of subdivision, whichever is shorter. Code section 405.1 also authorizes time extensions of certain ordinances that affect the assessment of property subdivided for development of housing and authorizes the time extensions of certain ordinances by counties and by cities in the portion of the applicable area located in the incorporated area of the city. Additionally, the Code section authorizes cities and counties to adopt, amend, or extend such ordinances and provides that property acquired and subdivided for development of housing shall continue to be assessed for taxation and taxed in the manner it was prior to its acquisition for housing until the lot is sold for construction or occupancy of housing. Code section 441.72 provides that a platted lot for which a subdivision plat was recorded is assessed for property tax purposes as acreage or unimproved property for five years or until the lot is actually improved with permanent construction, whichever occurs first. However, for subdivision plats recorded on or after January 1, 2004, but before January 1, 2011, the time limit is eight years. The bill modifies Code section 441.72(1) relating to the five-year limitation by specifying when a subdivision plat is recorded, the individual lots within the subdivision plat shall continue to be classified and assessed for taxation in the manner the property was prior to the recording of the plat for five years or until the lot is actually improved with permanent construction, whichever occurs first. The bill strikes portions of Code section 441.72(2) relating to the eight-year limitation. The bill provides that, unless the owner elects to withdraw the property from the provisions established in the bill, for property acquired for development on or after January 1, 2020, or property owned for development upon which development activities occur on or after January 1, 2020, such property shall continue to be classified and assessed for taxation in the same manner as the property was prior to the acquisition or commencement of development activities, the assessor shall not change the classification and assessment of the property or a lot on the property while development is occurring until the property or lot is improved with a new permanent structure or is sold. The bill allows owners of such property to withdraw the property from this new provision. If such an election is made, the property is subject to the assessment and classification provisions in Code section 441.71(1), as amended in the bill. The bill defines “development” to include reconstruction, zoning changes, clearing lots, depositing fill dirt, and installing streets and public utilities on the lots. The bill specifies nothing shall be construed to require the refund or modification of property taxes that are attributable to assessment years beginning before January 1, 2025, or the adjustment of property assessments for assessment years beginning before January 1, 2025. The bill takes effect upon enactment and applies retroactively to assessment years beginning on or after January 1, 2025.

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No sponsors listed

Other Sponsors (1)

Senate Ways and Means Subcommittee (12:00:00 3/31/2025 Room 217 Conference Room) (on 03/31/2025)

Official Document