SSB 3198

The bill also establishes a future repeal date for Code chapter 426C of July 1, 2022. _____ chapter 434 (railway company property) of percent for assessment years beginning on or after January 1, 2014. The bill modifies the amount and methodology for calculating the assessment limitation for parcels within those classifications of property. Instead of a uniform percentage of value, for valuations established for the assessment year beginning January 1, 2020, and each assessment year thereafter, the portion of actual value at which each parcel of commercial property shall be assessed shall be the sum of the following: (1) an amount equal to the product of the assessment limitation percentage applicable to residential property multiplied by the actual value of the property that exceeds $0 but does not exceed $150,000; and (2) an amount equal to percent of the actual value of the property for that assessment year that exceeds $150,000. The bill establishes a similar provision for industrial property and provides that the assessed value of railway company property shall be determined in the same manner as commercial property.21A, as amended in the bill.21A calculates and funds the commercial and industrial property tax replacement payments to political subdivisions in the state. Under current law, the amount of the replacement claim for each taxing district is equal to the difference between the assessed valuation of all commercial and industrial property located in the taxing district that is subject to assessment and taxation and the total actual value of all such property located in the taxing district multiplied by the tax rate specified for the taxing district, and then divided by $1,000. _____ amount of money necessary to pay all commercial and industrial property tax replacement payments for the fiscal year beginning July 1, 2016. The bill provides that for each fiscal year beginning on or after July 1, 2021, the total annual appropriation is the amount necessary to pay all commercial and industrial property tax replacement claims in that fiscal year, but not to exceed the sum of the total amount of money necessary to pay all commercial and industrial property tax replacement claims for the fiscal year beginning July 1, 2016, plus $125 million. Division I of the bill applies retroactively to assessment years beginning on or after January 1, 2020.21 provides that for assessment years beginning on or after January 1, 2015, property can be classified as multiresidential property. Multiresidential property largely includes property that prior to the assessment year beginning January 1, 2015, was classified as commercial property and includes mobile home parks, manufactured home communities, land-leased communities, assisted living facilities, and property primarily used or intended for human habitation containing three or more separate dwelling units. The percentage of actual value at which multiresidential property is subject to tax has been reduced each assessment year beginning with the 2015 assessment year. The percentage of actual value is reduced by law until the percentage is equal to or below the percentage that is applicable to residential property, at which time the two classifications are subject to the same percentage. Division II of the bill eliminates the classification of multiresidential property for assessment years beginning on or after January 1, 2021. The bill also provides that the types of property previously classified as multiresidential will, for assessment years beginning on or after January 1, 2021, be classified as residential property. _____ other provisions of law to reflect the elimination of the multiresidential property classification. Division II of the bill takes effect January 1, 2021, and applies to assessment years beginning on or after that date. Division II of the bill does not affect the operation of, or prohibit the application of, prior provisions of the Code sections amended by division II of the bill, or rules adopted to administer such prior provisions, for assessment years beginning before January 1, 2021, and for duties, powers, protests, appeals, proceedings, actions, or remedies attributable to an assessment year beginning before January 1, 2021. Code chapter 404B authorizes cities and counties to designate a disaster revitalization area if the area is within a county or portion of a county declared a disaster area. All real property within a disaster revitalization area is eligible to receive a 100 percent exemption from taxation on the increase in assessed value of the property, as compared to the property's assessed value on January 1, 2007, if the increase is attributable to revitalization of the property occurring between May 25, 2008, and December 31, 2013. The exemption is available for a period not to exceed five years, starting with the assessment year beginning on January 1, 2010. Under Code chapter 404B, a city or county may adopt a different tax exemption percentage, so long as the exemption percentage applies to every disaster revitalization area within that jurisdiction. Ordinances establishing a disaster revitalization area and tax exemption expire or must repealed no later than December 31, 2016. Division III of the bill amends the periods of time for establishing disaster revitalization areas and qualifying for a property tax exemption. _____ 2019, if the increase is attributable to revitalization of the property occurring between March 1, 2019, and December 31, 2024. Ordinances establishing a disaster revitalization area and tax exemption expire or must repealed no later than December 31, 2028.