- Iowa’s Capitol Dome
The 2012 Iowa Legislative Session is scheduled to begin on January 9, 2012.
Much of the 2012 legislative agenda remains to be determined; however, we expect the following issues will be addressed by the legislature in 2012. We will provide updates on this page as the legislative session progresses.
The legislature will discuss commercial property tax reduction again during the 2012 session. In 2011 there were two bills that dealt with commercial property tax reduction, and those bills are both still eligible for debate in 2012. One bill ties the assessments of residential, commercial and ag property together and limits the percentage increase to 4 percent. It also states that industrial property grow at the same rate as the other classes. Another bill will give commercial property tax relief by giving a tax credit to commercial property owners similar to the homestead credit. The tax credit will be funded by the State at $50 million per year.
The registry for mechanics liens creates a central state construction registry for general contractors, owner-builders, and subcontractors to protect their lien rights. The state construction registry would be a publicly accessible centralized electronic database created and maintained by the Secretary of State. The registry provides a centralized resource of all persons or companies furnishing labor or materials who may file a lien upon the improved property.
2011 Legislative Session Recap
The 2011 Iowa Legislative Session ended on June 30. Each year there are several bills introduced that impact Iowa homeowners. Following are a few pieces of legislation that were considered during the 2011 session.
Senate Study Bill 1059 – Property Assessment Appeals Board
This legislation repeals the Property Assessment Appeals Board. The State of Iowa Property Assessment Appeal Board is a state agency created for the purpose of establishing a consistent, fair and equitable property assessment appeal process. The Appeal Board conducts administrative hearings with the statutory authority to review any final decision, finding, ruling, determination, or oder of a local board of review relating to protests of an assessment, valuation, or application of an equalization order. For more information on PAAB go to: http://www.paab.iowa.gov/
House File 635 – Geothermal tax credit
This bill adds an income tax credit for construction and installation of geothermal heat pumps. This type of tax credit is already available to the construction and installation of a solar energy system and this would extend the same credit to geothermal. The legislation also specifies that installation of either solar or geothermal shall not increase the
actual, assessed and taxable values of the property for five full assessment years.
House File 300/Senate File 395 – Platted lots
This bill has passed out of both the Senate and House Commerce committees and has been referred to the Ways and Means committee in both chambers due to tax implications. Currently, a platted lot for which a subdivision plat has been recorded will be assessed for property tax purposes as acreage or unimproved property for three years or until
the lot is actually improved with permanent construction, whichever occurs first. This bill removes the three-year time limit and provides that a platted lot will be assessed as acreage or unimproved property until the lot is actually improved with permanent construction.
House File 9 – Commercial property tax relief
There will be a lot of discussion this session about commercial property tax relief. House File 9 is the primary bill draft that the House Republicans are working with, although there are several conversations from both parties dealing with the possible reduction of commercial property tax.
House File 595/Senate File 466 – Stormchaser bill
This bill tries to address the problems Iowa homeowners experienced after the natural disasters with some disreputable home improvement contractors. The bill prohibits a residential contractor from advertising or promising to pay anything of value or rebate any insurance deductible or any portion thereof as an inducement to the sale of goods or services. The bill provides that a person who has entered into a written contract with a residential contractor to provide goods or services to be paid from the proceeds of a property and casualty insurance policy may cancel the contract prior to midnight on the fifth business day after the person has received written notice from the insurer that all or part of the claim or contract is not a covered loss under the insurance policy. However, some of the bill language is being changed or amended – so watch for future updates on this issue.
Senate File 497 – Home inspector/contractor registration and bonding bill
The bill requires home inspectors to register with the Department of Public Safety for an annual fee of $50, and carry a minimum $15,000 surety bond. The bill also requires home improvement contractors to file a surety bond with the
division of labor services of the department of workforce development in the amount of $50,000.
House File 633 – Central registry for mechanic’s liens
This bill creates a central state construction registry for residential construction property for general contractors, owner-builders, and subcontractors to protect their lien rights. The state construction registry would be a publicly accessible centralized electronic database created and maintained by the Secretary of State. The registry provides a centralized resource of all persons or companies furnishing labor or materials who may file a lien upon the improved property.
House File 496 – Drainage levee disclosure
The bill requires that a seller’s disclosure statement include a notice that the property is located within a levee or drainage district. It also requires that before the land is transferred, the notice be delivered to an attorney or abstractor preparing the abstract of title for its inclusion. This legislation did not survive the funnel deadline so it is no longer eligible for debate.
House File 613 – Apartment/owner occupied rights
This bill restricts the ability of cities and counties to adopt and enforce ordinances which distinguish between persons living in owner-occupied housing and persons living in rental properties or which distinguishes residential property based on whether it is owner-occupied or leased. Some cities have passed local ordinances that treat apartment tenants and landlords differently than owner-occupied homes as it pertains to their liability and responsibility for what illegal activity happens within 1000 feet of their rental unit.
Senate File 359 – County Land Records System
This bill relates to the fees charged by a county recorder for each recorded transaction. Current law requires that, between July 1, 2009, and June 30, 2011, a recorder charge a fee of $3 for each recorded transaction regardless of the number of pages. Current law reduces this fee to $1 for each recorded transaction beginning July 1, 2011. The bill increases the fee to be charged beginning July 1, 2011, from $1 to $2 for each recorded transaction, and provides an end date for imposition of the fee of June 30, 2016.
