House Study Bill 66 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act establishing an exemption for certain property 1 classified as agricultural based on levee and drainage 2 district assessments. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1205YC (2) 90 md/jh
H.F. _____ Section 1. Section 427.1, Code 2023, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 42. Certain property classified as 3 agricultural located in a levee and drainage district. For 4 assessment years beginning on or after January 1, 2024, 5 a portion of the actual value of property classified as 6 agricultural, as determined on the basis of productivity and 7 net earning capacity as determined under section 441.21, 8 subsection 1, paragraph e , located in a levee and drainage 9 district under chapter 468, if the district is adjacent to 10 both the Mississippi river and the Iowa river and consists of 11 at least thirty-five thousand acres. The exemption on such 12 property classified as agricultural shall be allowed if the 13 propertys per-acre levee and drainage district taxes assessed 14 under chapter 468 exceed the applicable countys per-acre 15 five-year average levee and drainage district tax amount. The 16 amount of the exemption shall be an amount equal to the number 17 of net acres comprising the property multiplied by the amount 18 by which the propertys per-acre levee and drainage district 19 taxes exceed the countys per-acre five-year average levee 20 and drainage district tax amount divided by seven percent. 21 However, in no case shall the amount of the exemption under 22 this subsection exceed fifty percent of the actual land value 23 of the property. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanations substance by the members of the general assembly. 27 Code section 441.21 provides that the actual value of 28 agricultural property shall be determined on the basis 29 of productivity and net earning capacity of the property 30 determined on the basis of its use for agricultural purposes 31 capitalized at a rate of 7 percent and applied uniformly among 32 counties and among classes of property. 33 Under this bill, for assessment years beginning on or after 34 January 1, 2024, a portion of the actual value of property 35 -1- LSB 1205YC (2) 90 md/jh 1/ 2
H.F. _____ classified as agricultural located in a levee and drainage 1 district that is located adjacent to both the Mississippi river 2 and the Iowa river and consists of at least 35,000 acres shall 3 be exempt from taxation. The exemption on such agricultural 4 property shall be allowed if the propertys per-acre levee and 5 drainage district taxes assessed exceed the applicable countys 6 per-acre five-year average levee and drainage district tax 7 amount. The amount of the exemption shall be an amount equal 8 to the number of net acres comprising the property multiplied 9 by the amount by which the propertys per-acre levee and 10 drainage district taxes exceed the countys per-acre five-year 11 average levee and drainage district tax amount divided by 7 12 percent. However, in no case shall the amount of the exemption 13 exceed 50 percent of the actual land value of the property. 14 -2- LSB 1205YC (2) 90 md/jh 2/ 2