A bill for an act relating to the assessment of certain development property, and including effective date and retroactive applicability provisions.(Formerly SSB 1180.)
The legislation will affect properties acquired for development on or after January 1, 2020. It would allow property owners the option to withdraw from these provisions, reverting them to the standard assessment practices as dictated by existing laws. Importantly, the bill maintains that tax assessments applicable prior to January 1, 2025, will not be modified or refunded, which assures that prior tax revenues are protected while facilitating new development projects.
Senate File 598 (SF598) is a proposed legislation aimed at modifying the assessment process for certain properties acquired for development in the state of Iowa. Specifically, the bill addresses how properties designated for development will be classified and assessed for taxation purposes. Under SF598, such properties will not have their assessment changed while development activities are ongoing, until they are improved with permanent structures or sold. This approach intends to provide stability in property assessments during the development phase, promoting investment in new construction.
Overall, SF598 aims to streamline property assessment processes and encourage development, particularly in the housing sector. The balance it seeks to establish between facilitating development while ensuring stable tax revenue will be crucial as the bill progresses through the legislative process.
One point of contention with SF598 arises from its retroactive applicability to assessment years beginning on or after January 1, 2025. Critics might argue that such a provision could lead to confusion regarding how properties will be assessed over time, particularly for those who have already initiated development plans. Moreover, the repeal of the existing Code section 405.1 raises concerns among local governments regarding their ability to manage property assessments effectively, leading to possible disputes between developers and taxing authorities.