A bill for an act relating to the assessment of certain development property, and including effective date and retroactive applicability provisions.(See SF 598.)
Impact
The implications of SSB1180 are significant for both local government revenue and property developers. By allowing properties to maintain their assessed valuation as unimproved for longer periods, the legislation seeks to incentivize development without the immediate tax burden typically associated with the improvement of land. This could lead to increased property development and potentially stimulate local economies. However, it may also reduce immediate tax revenues for municipalities that depend on property taxes to fund essential services and infrastructure.
Summary
Senate Study Bill 1180, aimed at modifying the assessment of certain development properties, proposes changes primarily focused on how tax assessments are determined for platted lots over specific periods. The bill amends section 441.72 of the state code to clarify that individual lots within a subdivision plat will not be assessed at a higher rate than prior to their acquisition or development activity for up to five years after the plat recording or until the lots are improved with permanent structures. This ensures that property developers benefit from streamlined tax assessments as they engage in development activities, thereby promoting housing and related infrastructure efforts.
Contention
Notable points of contention regarding SSB1180 revolve around the balance between promoting development and maintaining sufficient tax revenues for local governments. Supporters argue that the bill will foster economic growth and encourage investments in housing, which is urgently needed in many areas. Conversely, critics remain concerned that the extended tax holiday for developers could undermine local funding, particularly for public services that are critical to community health and safety. This divide highlights the ongoing discussion about local autonomy versus state regulations in property development.
Implementation
The bill also stipulates that it does not apply retroactively to property tax assessments from before January 1, 2025, ensuring that existing tax obligations remain intact until the specified date. The act will take immediate effect upon enactment, further emphasizing a proactive legislative approach toward fostering a favorable environment for property development in the state.
Replaced by
A bill for an act relating to the assessment of certain development property, and including effective date and retroactive applicability provisions.(Formerly SSB 1180.)
Related
A bill for an act relating to the assessment of certain development property, and including effective date and retroactive applicability provisions.
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.)
A bill for an act relating to the calculation of assessment limitations for residential property and including effective date and retroactive applicability provisions.(See SF 181.)
A bill for an act exempting certain structures from inclusion in property assessments, and including effective date and retroactive applicability provisions.
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.)
A bill for an act relating to the calculation of assessment limitations for residential property and including effective date and retroactive applicability provisions.
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.)
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.
A bill for an act relating to certain education programs and tax credits and including effective date, applicability, and retroactive applicability provisions.(See SF 572.)
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.)