Iowa 2025-2026 Regular Session

Iowa Senate Bill SF598

Introduced

3/10/25

Refer

3/11/25

Caption

A bill for an act relating to the assessment of certain development property, and including effective date and retroactive applicability provisions.(Formerly SSB 1180.)

Impact

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.

Summary

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.

Conclusion

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.

Contention

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.

Companion Bills

IA SSB1180

Related A bill for an act relating to the assessment of certain development property, and including effective date and retroactive applicability provisions.(See SF 598.)

IA HSB307

Related A bill for an act relating to the assessment of certain development property, and including effective date and retroactive applicability provisions.

Previously Filed As

IA HF206

A bill for an act relating to the assessment of property containing certain aboveground storage tanks and including effective date and retroactive applicability provisions.(Formerly HSB 67.)

IA HF207

A bill for an act relating to the assessment and taxation of certain sanitary sewage and storm water drainage property and including effective date and retroactive applicability provisions. (Formerly HSB 64.) Effective date: 05/01/2024. Applicability date: 01/01/2024.

IA HF668

A bill for an act relating to property taxation for commercial child care centers and facilities and including effective date, applicability, and retroactive applicability provisions.(Formerly HSB 224.)

IA HF2655

A 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 726.)

IA HSB61

A bill for an act relating to the assessment and valuation of property rented or leased to certain low-income individuals and families and including effective date and retroactive applicability provisions.(See HF 717.)

IA HF717

IA HF567

A bill for an act relating to nonsubstantive Code corrections, and including effective date and retroactive applicability provisions. (Formerly HSB 159.) Contingent effective date. Applicability date: 01/01/2022, 01/01/2023.

IA HSB120

A bill for an act relating to the calculation of assessment limitations for residential property and including effective date and retroactive applicability provisions.

IA SF181

A bill for an act relating to property taxes and income taxes by modifying the calculation of assessment limitations for certain property, amending provisions relating to certain tax withholding requirements and tax credits, and including effective date and retroactive applicability provisions. (Formerly SSB 1056.) Effective date: 02/20/2023. Applicability date: 01/01/2022, 01/01/2023.

IA HSB224

A bill for an act relating to property taxation for commercial child care centers and facilities and including effective date, applicability, and retroactive applicability provisions.(See HF 668.)