Iowa 2023-2024 Regular Session Status: Enacted

SF 181 — 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.

Last action — Fiscal note.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 31, 2023. Enacted.

Signed by Governor Kim Reynolds (Republican) on February 20, 2023.

Prognosis

Advancing 50% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

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Bill Text

What changed in the latest version

73 added · 99 removed

73 line(s) added, 99 removed.

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KMRENLDS O FICE OF THE GOVERNOR ADMGREG GVENOR LTOVRNR Fbury0.03 TeHnoalealPte Sceayofaeofoa tteaiol DsMies,oa5019 Darr.ertr, Ieeytasi:
Senate File 181 - Enrolled Senate File 181 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.
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ASSEMBLY !I 1 IPI lt C1I ü1 !':I Il I I1!!C'illlI 1tP1 CIPI I1 I11.` Senate File 181 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.
DIVISION I ASSESSMENT LIMITATIONS Section 1 .
DIVISION I ASSESSMENT LIMITATIONS Section 1.
Section 441.21, subsection 4 , Code 2023, is amended to read as follows:
Section 441.21, subsection 4, Code 2023, is amended to read as follows:
( 1 ) The dividend for each class of property shall be the dividend as determined for each class of property for valuations established as of January 1 , 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, plus six percent of the amount so determined.
(1) The dividend for each class of property shall be the dividend as determined for each class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, plus six percent of the amount so determined.
(2) However, if the difference between the dividend so determined for either class of property and the dividend for Senate File 181, p .
(2) However, if the difference between the dividend so determined for either class of property and the dividend for Senate File 181, p.
2 that class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, is less than six percent, the 1979 dividend for the other class of property shall be the dividend as determined for that class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, plus a percentage of the amount so determined which is equal to the percentage by which the dividend as determined for the other class of property for valuations established as of January 1 , 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, is increased in arriving at the 1979 dividend for the other class of property.
2 that class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, is less than six percent, the 1979 dividend for the other class of property shall be the dividend as determined for that class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, plus a percentage of the amount so determined which is equal to the percentage by which the dividend as determined for the other class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, is increased in arriving at the 1979 dividend for the other class of property.
(3) For valuations established for assessment years beginning on or after January 1 , 2022, the calculation of the dividend for residential property under this subsection shall exclude the value of all property described in subsection 14, paragraph 'a"", subparagraphs (2), (3), (4), (5), and (6), and the property described in subsection 14, paragraph 'a- , subparagraph (7), that contains three or more separate dwelling units.
(3) For valuations established for assessment years beginning on or after January 1, 2022, the calculation of the dividend for residential property under this subsection shall exclude the value of all property described in subsection 14, paragraph “a”, subparagraphs (2), (3), (4), (5), and (6), and the property described in subsection 14, paragraph “a”, subparagraph (7), that contains three or more separate dwelling units.
( 1) The divisor for each class of property shall be the total actual value of all such property in the state in the preceding year, as reported by the assessors on the abstracts of assessment submitted for 1978, plus the amount of value added to said total actual value by the revaluation of existing properties in 1979 as equalized by the director of revenue pursuant to section 441.49.
(1) The divisor for each class of property shall be the total actual value of all such property in the state in the preceding year, as reported by the assessors on the abstracts of assessment submitted for 1978, plus the amount of value added to said total actual value by the revaluation of existing properties in 1979 as equalized by the director of revenue pursuant to section 441.49.
(2) For valuations established for assessment years beginning on or after January 1 , 2022, the calculation of the divisor for residential property under this subsection shall exclude the value of all property described in subsection 14, paragraph -a-, subparagraphs ( 2), (3), (4), ( 5), and ( 6), and the property described in subsection 14, paragraph "a -, subparagraph ( 7), that contains three or more separate dwelling units.
(2) For valuations established for assessment years beginning on or after January 1, 2022, the calculation of the divisor for residential property under this subsection shall exclude the value of all property described in subsection 14, paragraph “a”, subparagraphs (2), (3), (4), (5), and (6), and the property described in subsection 14, paragraph “a”, subparagraph (7), that contains three or more separate dwelling units.
( 1) For valuations established as of January 1 , 1980, and each assessment year thereafter beginning before January 1, 2013, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which agricultural and residential property shall be assessed shall be calculated in accordance with the methods provided in this subsection, including the limitation of increases in agricultural and residential assessed values to the percentage increase of the other class of property if the other class increases less than the allowable limit adjusted to include the applicable and current values as equalized by the director of revenue, except that any references to six percent in this subsection shall be four percent.
(1) For valuations established as of January 1, 1980, and each assessment year thereafter beginning before January 1, 2013, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which agricultural and residential property shall be assessed shall be calculated in accordance with the methods provided in this subsection, including the limitation of increases in agricultural and residential assessed values to the percentage increase of the other class of property if the other class increases less than the allowable limit adjusted to include the applicable and current values as equalized by the director of revenue, except that any references to six percent in this subsection shall be four percent.
(2) For valuations established as of January 1 , 2013, and each assessment year thereafter, the percentage of actual value as equalized by the department of revenue as provided in section 441.49 at which agricultural and residential property shall be assessed shall be calculated in accordance with the methods provided in this subsection, including the limitation of increases in agricultural and residential assessed values to the percentage increase of the other class of property if the other class increases less than the allowable limit adjusted to include the applicable and current values as equalized by the department of revenue, except that any references to six percent in this subsection shall be three percent.
(2) For valuations established as of January 1, 2013, and each assessment year thereafter, the percentage of actual value as equalized by the department of revenue as provided in section 441.49 at which agricultural and residential property shall be assessed shall be calculated in accordance with the methods provided in this subsection, including the limitation of increases in agricultural and residential assessed values to the percentage increase of the other class of property if the other class increases less than the allowable limit adjusted to include the applicable and current values as equalized by the department of revenue, except that any references to six percent in this subsection shall be three percent.
4 business days following the effective date of this division of this Act, issue an amended order certifying to the county auditor of each county the percentages of actual value at which residential property, commercial property, industrial property, and property valued by the department of revenue pursuant to chapter 434 shall be assessed for taxation under section 441.21, subsection 9 , for the assessment year beginning January 1, 2022.
4 business days following the effective date of this division of this Act, issue an amended order certifying to the county auditor of each county the percentages of actual value at which residential property, commercial property, industrial property, and property valued by the department of revenue pursuant to chapter 434 shall be assessed for taxation under section 441.21, subsection 9, for the assessment year beginning January 1, 2022.
The amended order shall supersede all previous orders certifying percentages for assessment limitations for residential property, commercial property, industrial property, and property valued by the department of revenue pursuant to chapter 434 for the assessment year beginning January 1 , 2022.
The amended order shall supersede all previous orders certifying percentages for assessment limitations for residential property, commercial property, industrial property, and property valued by the department of revenue pursuant to chapter 434 for the assessment year beginning January 1, 2022.
Notwithstanding the requirements of section 441.21, subsection 9 , and any other provision of law to the contrary, upon receipt of the amended order under subsection 1 , each county auditor shall proceed to determine the assessed values of residential property, commercial property, industrial property, and property valued by the department of revenue pursuant to chapter 434 for the assessment year beginning January 1 , 2022, by applying the percentages from the amended order to the actual value of such property reported to the county auditor by the assessor.
Notwithstanding the requirements of section 441.21, subsection 9, and any other provision of law to the contrary, upon receipt of the amended order under subsection 1, each county auditor shall proceed to determine the assessed values of residential property, commercial property, industrial property, and property valued by the department of revenue pursuant to chapter 434 for the assessment year beginning January 1, 2022, by applying the percentages from the amended order to the actual value of such property reported to the county auditor by the assessor.
Notwithstanding any provision of law to the contrary, each county auditor, within fifteen days after issuance of the order under subsection 1 , shall report the valuation by class of property for each taxing district in the county for the assessment year beginning January 1 , 2022, to the department of management on forms provided by the department of management.
Notwithstanding any provision of law to the contrary, each county auditor, within fifteen days after issuance of the order under subsection 1, shall report the valuation by class of property for each taxing district in the county for the assessment year beginning January 1, 2022, to the department of management on forms provided by the department of management.
The valuations reported shall be the valuations used for determining the levy rates necessary to fund political subdivision budgets for the fiscal year beginning July 1 , 2023.
The valuations reported shall be the valuations used for determining the levy rates necessary to fund political subdivision budgets for the fiscal year beginning July 1, 2023.
If a political subdivision has certified its budget for the fiscal year beginning July 1 , 2023, before the effective date of this division of this Act, the political subdivision may recertify its budget on or before April 30, 2023.
If a political subdivision has certified its budget for the fiscal year beginning July 1, 2023, before the effective date of this division of this Act, the political subdivision may recertify its budget on or before April 30, 2023.
3.
This division of this Act applies retroactively to assessment years beginning on or after January 1 , 2022.
This division of this Act applies retroactively to assessment years beginning on or after January 1, 2022.
Section 237A.31, subsection 1 , Code 2023, is amended to read as follows:
Section 237A.31, subsection 1, Code 2023, is amended to read as follows:
The taxes imposed under chapter 422, subchapter II or III, the franchise tax imposed under chapter 422, subchapter V, the gross premiums tax under chapter 432, or the moneys and credits tax imposed under section 533.329 shall be reduced by an employer child care tax credit equal to the amount proportion of the federal employer-provided child care tax credit provided in section 45F of the Internal Revenue Code the taxpayer was eligible for in the same tax year attributable to expenditures made in this state.
The taxes imposed under chapter 422, subchapter II or III, the franchise tax imposed under chapter 422, subchapter V, the gross premiums tax under chapter 432, or the moneys and credits tax imposed under section 533.329 shall be reduced by an employer child care tax credit equal to the amount proportion of the federal employer-provided child care tax credit provided in section 45F of the Internal Revenue Code the taxpayer was eligible for in the same tax year attributable to expenditures made in this state .
This division of this Act applies retroactively to January 1 , 2023, for tax years beginning on or after that date.
This division of this Act applies retroactively to January 1, 2023, for tax years beginning on or after that date.
DIVISION III RETIREMENT INCOME — WITHHOLDING Sec.
DIVISION III RETIREMENT INCOME —— WITHHOLDING Sec.
For the purposes of this subsection, at a rate specified by the department, state income tax shall be withheld from pensions, annuities, other similar periodic payments, and other income payments Iewa in these eireuffis ees in whieh these persens have federal income tax withheld from pen3ion3, annuitieo, other similar Senate File 181, p.
For the purposes of this subsection, at a rate specified by the department, state income tax shall be withheld from pensions, annuities, other similar periodic payments, and other income payments of those persons whose primary residence is in Iowa in those circumstances in which those persons have federal income tax withheld from pensions, annuities, other similar Senate File 181, p.
6 peried.- and ether ineeme payment-- under sections 3402(0), 3402(p), 3402(s), 3405(a), 3405(b), and 3405(c) of the Internal Revenue Code at a rate to be specified by the department made to Iowa residents if the payments are subject to Iowa tax.
6 periodic payments, and other income payments under sections 3402(o), 3402(p), 3402(s), 3405(a), 3405(b), and 3405(c) of the Internal Revenue Code at a rate to be specified by the department made to Iowa residents if the payments are subject to Iowa tax.
This division of this Act applies retroactively to January 1 , 2023, for tax years beginning on or after that date.
This division of this Act applies retroactively to January 1, 2023, for tax years beginning on or after that date.
V IIA"" AMY SINCL'1i R PAT GRASSLEY Presiden4of the Senate Speaker of the use I hereby certify that this bill originated in the Senate and is known as Senate File 181, Ninetieth General Assembly.
______________________________ ______________________________ AMY SINCLAIR PAT GRASSLEY President of the Senate Speaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 181, Ninetieth General Assembly.
-( • îVÎî s_ 1•1 41SGP W.
______________________________ W.
CHARLES SMITHSON Secre ary om he Senate ApprovedQ 6 , 2 î04" " , 2023 KIM ' OLDS Governor
CHARLES SMITHSON Secretary of the Senate Approved _______________, 2023 ______________________________ KIM REYNOLDS Governor
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Amendments

3 amendments

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Action History

  1. Fiscal note.

  2. Signed by Governor.

  3. Reported correctly enrolled, signed by President and Speaker, and sent to Governor.

  4. Message from House.

  5. Immediate message.

  6. Explanation of vote.

  7. Passed House, yeas 86, nays 13.

  8. Amendment H-1020, yeas 36, nays 63, lost.

  9. Unanimous consent for immediate consideration.

  10. Amendment H-1020 filed.

  11. Placed on Ways and Means calendar.

  12. Committee report, recommending passage.

  13. Subcommittee recommends passage. Vote Total: 3-0.

  14. Subcommittee Meeting: 02/06/2023 11:00AM RM 102, Sup. Ct. Consult.

  15. Subcommittee: Kaufmann, Bloomingdale, Forbes, Harris and Jacoby.

  16. Read first time, referred to Ways and Means.

  17. Message from Senate.

  18. Immediate message.

  19. Passed Senate, yeas 49, nays 0.

  20. Amendment S-3007 filed, adopted.

  21. Amendment S-3008 filed, lost.

  22. Fiscal note.

  23. Committee report, approving bill.

  24. Introduced, placed on Ways and Means calendar.

Sponsors

  • COMMITTEE ON WAYS AND MEANS · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 149 not signed on

Sponsors (1)

  • COMMITTEE ON WAYS AND MEANS

Co-sponsors (0)

None.

Not signed on (149)

149 members have not signed on to this bill.

Show all 149 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation
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Frequently asked questions

Who sponsors SF 181?
SF 181 is sponsored by COMMITTEE ON WAYS AND MEANS.
What is the current status of SF 181?
This bill has been enacted into law. Introduced January 31, 2023. Enacted.
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