ARC 8318C - Iowa Administrative Rules

Notice of Intended Action

Determination of aggregate actual values, 102.12

Untitled document

ARC 8318C

REVENUE DEPARTMENT[701]

Notice of Intended Action

Proposing rulemaking related to assessment practices and equalization
and providing an opportunity for public comment

The Revenue Department hereby proposes to amend Chapter 102, “Assessment Practices and Equalization,” Iowa Administrative Code.

Legal Authority for Rulemaking

This rulemaking is proposed under the authority provided in Iowa Code section 441.21(1)“e.”

State or Federal Law Implemented

This rulemaking implements, in whole or in part, Iowa Code section 441.21(1)“e.”

Purpose and Summary

Iowa Code section 441.21(1)“e” dictates that the valuation of agricultural property for property tax purposes shall be determined on the basis of productivity and net earning capacity of the property. That statute also requires the Department to set forth any formula or method employed to determine productivity and net earning capacity of property by rule. The Department utilizes hay data provided by the United States Department of Agriculture National Agricultural Statistics Services (USDA NASS) to assist with the accurate valuation of agricultural property. Recent changes to hay data reported by USDA NASS will result in inaccurate valuations for the agricultural property classification if the Department does not identify and utilize additional data sources. The Department has found an alternative source of data in the U.S. Census of Agriculture and is proposing to incorporate this data source in this rulemaking.

Regulatory Analysis

A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on September 4, 2024. A public hearing was held on the following date(s):

●September 24, 2024

No public comments were received at the hearing or in writing. No changes from the Regulatory Analysis have been made. The Administrative Rules Coordinator provided preclearance for publication of this Notice of Intended Action onSeptember 24, 2024.

Fiscal Impact

This rulemaking has no anticipated fiscal impact to the State of Iowa. However, failure to proceed with this proposed rulemaking would result in the Department’s inability to utilize necessary data to ensure the accurate valuation of agricultural property, making it more likely that incorrect amount of property tax will be assessed and collected by local governments.

Jobs Impact

After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to rule 701—7.28(17A).

Public Comment

Any interested person may submit written or oral comments concerning this proposed rulemaking. Written or oral comments in response to this rulemaking must be received by the Department no later than 4:30 p.m. on November 19, 2024. Comments should be directed to:

Nick Behlke
Department of Revenue
Hoover State Office Building
P.O. Box 10457
Des Moines, Iowa 50306-3457
Phone: 515.336.9025
Email: nick.behlke@iowa.gov

Public Hearing

Public hearings at which persons may present their views orally or in writing will be held as follows:

November 19, 2024 10:30 to 11 a.m.	Via videoconference call: meet.google.com/ssg-gvyg-xdp
November 19, 2024 1 to 1:30 p.m.	Via videoconference call: meet.google.com/aih-dinn-whe

Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

The following rulemaking action is proposed:

ITEM 1.Amend subparagraph 102.12(1)“a”(1) as follows:

(1)Computation of county acres. This information shall be obtained from the USDA National Agricultural Statistics Service.If this information is not available from the USDA National Agricultural Statistics Service, this information shall be obtained from the U.S. Census of Agriculture.

1. to 6. No change.

1.	From the most recent U.S. Census of Agriculture obtain the following:
	Cropland used only for pasture and grazing	______	acres
	Woodland pasture	______	acres
	Pasture land and rangeland (other than cropland and woodland pasture)	______	acres
	TOTAL PASTURE LAND (total of above):	______	acres

2.	Determine what percentage of the total pasture land is cropland used only for pasture:	______	%

3.	Apply the percentage in “2” above to the 5-year average total acres of pasture as determined above to determine the pasture acres to be classified as tillable pasture. The remainder of the 5-year average shall be classified as nontillable pasture land.	______	acres

7.Government programs: Determine the 5-year average acres participating in applicable government programs. Obtain data from the USDA Farm Service Agency, including but not limited to acreage devoted to the Payment-In-Kind (PIK), diverted and deficiency programs.

8.Other acres: The difference between the total acreage for land uses listed above and the total of all land in farms. Add the total of the corn, oats, soybeans, hay, tillable and nontillable pasture and diverted acres. Subtract this total from total acres in farms. The residual is classified as other acres.

ITEM 2.Amend subparagraph 102.12(1)“a”(2) as follows:

(2)Computation of county yields. This information shall be obtained for each county from the USDA National Agricultural Statistics Service.If this information is not available from the USDA National Agricultural Statistics Service, this information shall be obtained from the U.S. Census of Agriculture.

1. to 4. No change.