Iowa Senate Bill SF2086

Iowa 2023-2024 Regular Session

• Introduced: 1/23/24
• Refer: 1/23/24

Caption

A bill for an act exempting certain structures from inclusion in property assessments, and including effective date and retroactive applicability provisions.

Impact

The bill's enactment will effectively change the criteria by which properties are assessed for taxation in Iowa. By exempting qualifying small structures from property assessments, it encourages development and use of these structures without the financial pressure of increased taxation. The retroactive applicability provision means that assessments will also not account for these structures starting from the assessment years beginning January 1, 2024, leading to immediate financial implications for property owners.

Summary

Senate File 2086, introduced by Senator Zumbach, aims to provide tax exemptions for certain small structures by amending the property tax assessment laws in Iowa. The bill explicitly states that structures not connected to gas, electricity, water, or sewer utilities, which are no larger than 600 square feet, not anchored to a permanent foundation, and easily movable, shall not be taxed as real property. This proposal is significant in its attempt to distinguish between permanent and temporary structures for taxation purposes, thereby reducing the tax burden on specific property owners.

Contention

Discussion around SF2086 may arise regarding the fairness and implications of exempting certain properties from taxation while potentially impacting local government revenues. Supporters may argue that this fosters innovation and the use of alternative housing solutions, while opponents could raise concerns about the loss of tax revenue for local jurisdictions, which might depend on such assessments to fund public services. The defining criteria related to utility connections and the physical characteristics of the structures might also lead to debates on adequate definitions and the loopholes that could be exploited.