Iowa House Bill HSB66

Iowa 2023-2024 Regular Session

• Introduced: 1/20/23
• Refer: 1/20/23

Caption

A bill for an act establishing an exemption for certain property classified as agricultural based on levee and drainage district assessments.(See HF 353.)

Impact

The primary impact of HSB66 is the financial relief it offers to agricultural landowners in affected areas by reducing their tax liabilities. The exemption mechanism is structured such that it calculates the reduction based on the difference between the property’s individual per-acre tax and the county’s average. However, the bill caps the exemption at 50% of the actual value of the land, thereby ensuring that the exemption is meaningful but not disproportionately beneficial to any single property owner.

Summary

House Study Bill 66 (HSB66) proposes an exemption for certain agricultural properties situated in levee and drainage districts within Iowa. This bill specifically targets lands adjacent to both the Mississippi and Iowa rivers, requiring that districts contain at least 35,000 acres to qualify. From the assessment years commencing January 1, 2024, properties meeting the criteria will see a partial exemption from taxation if their per-acre taxes assessed plus drainage district charges exceed the county's five-year average taxes per acre for those same categories.

Contention

While the bill aims to provide support within the agriculture sector, it may raise concerns regarding equity among landowners in varying districts, especially those not meeting the acreage requirement or positioned outside the specified geographic boundaries. Additionally, opponents may argue that creating a tax exemption could place additional financial burdens on local governments, which derive a part of their revenue from property taxes. Future assessments of the bill will likely delve into its long-term implications for local taxation and jurisdictional financial health.