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This week the House Ways and Means Committee unanimously supported House Study Bill 224. The bill relates to property tax on commercial child care centers.
Current law provides that a child care center or child care facility are commercial properties and as such are assigned a 90 percent rollback. This means they pay property tax on 90 percent of their assessed value.
House Study Bill 224 provides that for assessments years beginning January 1, 2013 and after—property that is primarily used as a child care center or facility—although a commercial property—will be given the same rollback as residential property (this year 54 percent). This will result in a huge property tax cut for these businesses.
The bill provides that a person who wishes to qualify for this rollback must file an application with the assessor by July 1 of the assessment year for which the person is first requesting the limitation on forms provided by the department of revenue. The license to operate as a child care center or facility must be included with the application. The person will not have to apply in subsequent years as along as the property is still used for this purpose.
House Study Bill 224 provides that each county’s board of supervisors shall determine eligibility of applicants by September 1 of each year. There is a process for appealing a decision. Additionally, if a property is receiving the residential rollback, but no longer is being used as a child care center or facility—the taxes that would have been owed will have to be paid back.
The bill will now move to the House floor for further consideration.
Forum Schedule
Senator Sinclair and Representative Fry will once again be hosting Legislative Forums in the District during the 2023 Legislative Session.
The next set of forums will be:
March 24, 2023
8:00 am - Corydon, IA at the Corydon Farm Bureau
10:00 am - Chariton, IA at the Chariton Farm Bureau
12:00 pm - Osceola, IA at the Lakeside Casino
2:00 pm - Leon, IA at the Leon Community Center
Rep. Joel Fry
House District 27
515.281.3221