Bill
Bill > HF991
IA HF991
IA HF991A bill for an act placing assessment limitations for property tax purposes on commercial child care facilities, and including effective date, applicability, and retroactive applicability provisions.(Formerly HSB 316.)
summary
Introduced
04/07/2025
04/07/2025
In Committee
04/23/2025
04/23/2025
Crossed Over
04/23/2025
04/23/2025
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to assessment limitations for property taxation purposes for commercial child care facilities, and includes effective date, applicability, and retroactive applicability provisions. Code section 441.21(5) determines the amount of actual value of commercial property that is subject to property tax. The amount is the sum of the residential assessment limitation to the portion of the property’s value that does not exceed $150,000 plus 90 percent of the property’s value in excess of $150,000. The bill excludes property that is primarily used as a child care facility from the calculation of the actual value of the property. The bill instead specifies that for assessment years beginning on or after January 1, 2025, the amount of actual value used as child care facilities that is subject to tax is equal to the product of the assessment limitation percentage applicable to residential property multiplied by the actual value of the property provided that the property owner has applied for the assessment limitation and the county board of supervisors has allowed such an assessment limitation. The bill establishes application procedures, approval procedures, and recordkeeping procedures for the assessment limitation. The bill makes conforming changes to reflect the child care facility assessment limitation. The bill takes effect upon enactment. The bill applies retroactively to assessment years beginning on or after January 1, 2025, and applies to payments to local governments for fiscal years beginning on or after July 1, 2026.
AI Summary
This bill introduces a new property tax assessment limitation specifically for commercial child care facilities in Iowa. Starting from the 2025 assessment year, child care facilities can apply for a reduced property tax assessment that will be calculated by multiplying the residential property assessment limitation percentage by the property's actual value. To qualify, property owners must submit an application to the local assessor by July 1 of the assessment year, including details like property description and a copy of their child care facility license. The county board of supervisors will review and approve these applications, and once approved, the assessment limitation will automatically continue in subsequent years as long as the property remains a child care facility. If a property no longer functions as a child care facility, the owner must notify the assessor, and the board can retroactively review and potentially rescind the assessment limitation within 36 months of initial approval. The bill includes provisions for tracking property transfers and allows the Department of Revenue to create rules for implementing this new assessment limitation. The changes will be retroactively applied to assessment years beginning on or after January 1, 2025, and will affect local government payments starting from the fiscal year beginning July 1, 2026.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Ways and Means (House)
Last Action
Subcommittee: Dawson, Bisignano, and Rowley. S.J. 915. (on 04/28/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF991 |
| Fiscal Note - Child Care Facilities, Property Tax | https://www.legis.iowa.gov/docs/publications/FN/1525891.pdf |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF991.html |
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