Governor signs bill clarifying commercial property assessments

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Gov. Terry Branstad signed legislation today that creates a dual-class designation for commercial properties that include housing units, requires county assessors to mail equalization notices to affected property owners, expands the criteria under which disabled veterans can qualify for a property tax credit, and expands sales tax exemptions for off-road vehicles that are used in farming operations. House File 616 started its legislative life as an attempt to broaden notification of equalization orders from publication in newspapers to include a mailed notice. Its scope grew during debate in the Iowa House and Senate to clear up some confusion created by landmark property legislation that became law in 2013. Among the issues was vague language under which assessors would base their appraisals of some mixed-use commercial properties. Under the 2013 legislation, assessors used a variety of factors to determine whether properties containing residential units in combination with other commercial uses, such as restaurants, would be assessed solely as a multifamily property. Under House Bill 616, such properties will fall under a dual-use classification.