Iowa Administrative Code › Agency 701 - Revenue Department › Title II - Property Tax › Chapter 102 - Assessment Practices and Equalization › Rule 701-102.29 - Application of Two-tier Assessment Limitation

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Following receipt of the certification of
				assessment limitations described in Iowa Code section
				441.21(9), the
				county auditor shall determine the assessed values of property by applying the
				assessment limitations as required under Iowa Code section
				441.21(9).
(2) When a property unit of commercial
				property, industrial property, or property valued by the department pursuant to
				Iowa Code chapter 434 is comprised of more than one parcel, the county auditor
				shall apply the assessment limitations described in Iowa Code sections
				441.21(5)
"b"
(2)(a) and 441.21(5)
"c"
(2)(a), as
				applicable, to each parcel within the property unit by dividing 150,000 by the
				value of the entire property unit and multiplying the quotient by the value of
				each parcel within the property unit. Any remaining value of each parcel within
				the property unit shall receive the assessment limitations described in Iowa
				Code sections 441.21(5)
"b"
(2)(b) and
				441.21(5)
"c"
(2)(b), as applicable. The assessment limitations shall be
				applied as whole numbers.
EXAMPLE A: Parcels 1, 2, and 3 comprise one property unit of
				  commercial, industrial, or railway property valued at $300,000 total.
Parcel 1 is assessed at $100,000.
Parcel 2 is assessed at $100,000.
Parcel 3 is assessed at $100,000.
The first $50,000 of value of each parcel receives the
				  assessment limitation applicable to residential property. The additional value
				  of each parcel receives the applicable assessment limitation for commercial,
				  industrial, or railway property assessed under Iowa Code chapter 434 described
				  in Iowa Code sections
				  441.21(5)
"b"
(2)(b) and
				  441.21(5)
"c"
(2)(b).
EXAMPLE B: Parcels 1, 2, 3, and 4 comprise one property unit
				  of commercial, industrial, or railway property valued at $850,000 total.
Parcel 1 is assessed at $500,000.
Parcel 2 is assessed at $200,000.
Parcel 3 is assessed at $100,000.
Parcel 4 is assessed at $50,000.
The first $88,235 of value of Parcel 1 receives the
				  assessment limitation applicable to residential property. The additional value
				  of the parcel receives the applicable assessment limitation for commercial,
				  industrial, or railway property assessed under Iowa Code chapter 434 described
				  in Iowa Code sections
				  441.21(5)
"b"
(2)(b) and
				  441.21(5)
"c"
(2)(b).
The first $35,294 of value of Parcel 2 receives the
				  assessment limitation applicable to residential property. The additional value
				  of the parcel receives the applicable assessment limitation for commercial,
				  industrial, or railway property assessed under Iowa Code chapter 434 described
				  in Iowa Code sections
				  441.21(5)
"b"
(2)(b) and
				  441.21(5)
"c"
(2)(b).
The first $17,647 of value of Parcel 3 receives the
				  assessment limitation applicable to residential property. The additional value
				  of the parcel receives the applicable assessment limitation for commercial,
				  industrial, or railway property assessed under Iowa Code chapter 434 described
				  in Iowa Code sections
				  441.21(5)
"b"
(2)(b) and 441.21(5)
"c"
(2)(b).
The first $8,824 of value of Parcel 4 receives the assessment
				  limitation applicable to residential property. The additional value of the
				  parcel receives the applicable assessment limitation for commercial,
				  industrial, or railway property assessed under Iowa Code chapter 434 described
				  in Iowa Code sections 441.21(5)
"b"
(2)(b) and
				  441.21(5)
"c"
(2)(b).
EXAMPLE C: Parcels 1 and 2 comprise one property unit of
				  commercial, industrial, or railway property valued at $500,000 total.
Parcel 1 is assessed at $400,000.
Parcel 2 is assessed at $100,000.
The first $120,000 of value of Parcel 1 receives the
				  assessment limitation applicable to residential property. The additional value
				  of the parcel receives the applicable assessment limitation for commercial,
				  industrial, or railway property assessed under Iowa Code chapter 434 described
				  in Iowa Code sections 441.21(5)
"b"
(2)(b) and
				  441.21(5)
"c"
(2)(b).
The first $30,000 of value of Parcel 2 receives the
				  assessment limitation applicable to residential property. The additional value
				  of the parcel receives the applicable assessment limitation for commercial,
				  industrial, or railway property assessed under Iowa Code chapter 434 described
				  in Iowa Code sections 441.21(5)
"b"
(2)(b) and
				  441.21(5)
"c"
(2)(b).
This rule is intended to implement Iowa Code sections
				  441.21(5)  and
				  441.21(9)  as
				  amended by 2022 Iowa Acts, House File 2552.