This bill amends the assessment process for development property in Iowa, specifically altering the provisions in Code section 441.72. It removes the previous five-year and eight-year assessment limitations for platted lots and introduces a new framework for properties acquired for development on or after January 1, 2020. Under the new provisions, such properties will continue to be assessed for taxation in the same manner as before their acquisition or the start of development activities. The bill stipulates that the classification or assessment of the property cannot be changed until the property is improved with a new permanent structure, sold, or five years have passed since the subdivision plat was recorded.

Additionally, the bill defines "development" to encompass various activities, including reconstruction, zoning changes, and the installation of public utilities. It also repeals Code section 405.1, which previously allowed for certain assessment practices related to housing development. Importantly, the bill clarifies that it does not require any refunds or modifications of property taxes for assessment years beginning before January 1, 2025, and it takes effect immediately upon enactment, with retroactive applicability to assessment years starting on or after January 1, 2025.

Statutes affected:
Introduced: 441.72, 405.1