A bill for an act relating to the assessment of certain development property, and including effective date and retroactive applicability provisions.

This Iowa bill (HSB 307) changes property tax rules for development lots. It ensures properties acquired for development after January 1, 2020, maintain their prior tax classification until they are improved with permanent construction, sold, or five years pass since the subdivision plat was recorded - whichever happens first. The bill defines "development" broadly to include zoning changes, clearing land, installing utilities, or construction preparation. It applies retroactively to tax assessments starting January 1, 2025, but does not require refunds for taxes paid before that date. This primarily affects developers, property assessors, and local governments managing development properties.