ARC 8680C

REVENUE DEPARTMENT[701]

Adopted and Filed Emergency After Notice

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

Legal Authority for Rulemaking

This rulemaking is adopted 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 incorporating this data source in this rulemaking.

Public Comment and Changes to Rulemaking

Reason for Waiver of Normal Effective Date

Pursuant to Iowa Code section 17A.5(2)“b”(1)(b), the Department finds that the normal effective date of this rulemaking, 35 days after publication, should be waived and the rulemaking made effective on December 4, 2024, because the rule confers a benefit for taxpayers and local governments by addressing an alternative data source to assist with the accurate valuation of agricultural property. The accurate valuation of agricultural property will result in fairer tax bills for property taxpayers in the same taxing districts as agricultural property, as well as agricultural property taxpayers themselves. Additionally, the accurate calculation of taxable values for agricultural properties will provide for a more accurate tax base for local governments to tax against..

Adoption of Rulemaking

This rulemaking was adopted by the Department on December 4, 2024.

Fiscal Impact

This rulemaking has no anticipated fiscal impact to the State of Iowa. However, failure to proceed with this 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).

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).

Effective Date

This rulemaking became effective on December 4, 2024.

The following rulemaking action is adopted: