By Attorneys Jason Comisky and Elizabeth Burnett
HF 418, enacted in 2021, provided that certain property previously classified as multiresidential is classified as residential for assessment years beginning on or after January 1, 2022. No corresponding changes were made to Iowa Code Section 441.21(4) which establishes the calculation used to determine the assessment limitation for residential property and agricultural property. This caused the calculation to produce a residential rollback for Assessment Year 2022 equal to 56.4919%. Without the combination requirements of HF 418, the residential rollback for Assessment Year 2022 would have been 54.6501%.
On January 18, 2023, SSB 1056 was introduced, which in its current form would exclude the value of the following from the calculation of the assessment limitation for assessment years beginning on or after January 1, 2022:
- mobile home parks;
- manufactured home communities;
- land-leased communities;
- assisted living facilities;
- parcels primarily used or intended for human habitation containing three or more separate dwelling units; and
- that portion of a parcel primarily used or intended for use as commercial property or industrial property that is used or intended for human habitation containing three or more separate dwelling units.
The bill includes implementation provisions, would take effect upon enactment, and applies retroactively to assessment years beginning on or after January 1, 2022. The change to this calculation could impact budgets for Fiscal Year 2024 of public bodies. All public bodies currently in the budgetary process need to be aware of SSB 1056 or any evolution thereof.
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