Text: HF00198 Text: HF00200 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 404.1, subsection 4, Code 1997, is 1 2 amended to read as follows: 1 3 4. An area which is appropriate as an economic development 1 4 area as defined in section 403.17, except that, for purposes 1 5 of this chapter, "economic development area" shall not include 1 6 public improvements to property assessed as residential 1 7 property. 1 8 Sec. 2. Section 404.2, subsection 2, paragraph f, 1 9 unnumbered paragraph 1, Code 1997, is amended to read as 1 10 follows: 1 11 A statement specifying whether the revitalization is 1 12 applicable to none, some, or all of the property assessed as 1 13residential,agricultural, commercial, or industrial property 1 14 within the designated area or a combination thereof and 1 15 whether the revitalization is for rehabilitation and additions 1 16 to existing buildings or new construction or both. If 1 17 revitalization is made applicable only to some property within 1 18 an assessment classification, the definition of that subset of 1 19 eligible property must be by uniform criteria which further 1 20 some planning objective identified in the plan. The city 1 21 shall state how long it is estimated that the area shall 1 22 remain a designated revitalization area which time shall be 1 23 longer than one year from the date of designation and shall 1 24 state any plan by the city to issue revenue bonds for 1 25 revitalization projects within the area. For a county, a 1 26 revitalization area shall include only property which will be 1 27 used as industrial property,or commercial property, including 1 28 commercial property consisting of three or more separate 1 29 living quarters with at least seventy-five percent of the 1 30 space used for residential purposes, or residential property. 1 31 However, a county shall not provide a tax exemption under this 1 32 chapter to commercial property, including commercial property 1 33 consisting of three or more separate living quarters with at 1 34 least seventy-five percent of the space used for residential 1 35 purposes,or residential propertywhich is located within the 2 1 limits of a city. 2 2 Sec. 3. Section 404.2, subsection 2, paragraph h, Code 2 3 1997, is amended to read as follows: 2 4 h. Any tax exemption schedule that shall be used in lieu 2 5 of the schedule set out in section 404.3, subsection1,2, 3, 2 6 or 4. This schedule shall not allow a greater exemption, but 2 7 may allow a smaller exemption, than allowed in the schedule 2 8 specified in the corresponding subsection of section 404.3. 2 9 Sec. 4. Section 404.2, subsection 2, paragraph j, Code 2 10 1997, is amended by striking the paragraph. 2 11 Sec. 5. Section 404.3, subsection 1, Code 1997, is amended 2 12 by striking the subsection. 2 13 Sec. 6. Section 404.3, subsections 4, 5, 6, and 7, Code 2 14 1997, are amended to read as follows: 2 15 4. All qualified real estate assessed asresidential2 16property or assessed ascommercial property, if the commercial 2 17 property consists of three or more separate living quarters 2 18 with at least seventy-five percent of the space used for 2 19 residential purposes, is eligible to receive a one hundred 2 20 percent exemption from taxation on the actual value added by 2 21 the improvements. The exemption is for a period of ten years. 2 22 5. The owners of qualified real estate eligible for the 2 23 exemption provided in this section shall elect to take the 2 24 applicable exemption provided in subsection1,2, 3, or 4 or 2 25 provided in the different schedule adopted in the city or 2 26 county plan if a different schedule has been adopted. Once 2 27 the election has been made and the exemption granted, the 2 28 owner is not permitted to change the method of exemption. 2 29 6. The tax exemption schedule specified in subsection1,2 30 2, 3, or 4 shall apply to every revitalization area within a 2 31 city or county unless a different schedule is adopted in the 2 32 city or county plan as provided in section 404.2. However, a 2 33 city or county shall not adopt a different schedule unless 2 34 every revitalization area within the city or county has the 2 35 same schedule applied to it, except in areas of the city or 3 1 county which have been designated as both urban renewal and 3 2 urban revitalization areas. In an area designated for both 3 3 urban renewal and urban revitalization, a city or county may 3 4 adopt a different schedule than has been adopted for 3 5 revitalization areas which have not been designated as urban 3 6 renewal areas. The different schedule adopted shall not 3 7 provide for a larger tax exemption in a particular year than 3 8 is provided for that year in the schedule specified in the 3 9 corresponding subsection of this section. 3 10 7. "Qualified real estate" as used in this chapter and 3 11 section 419.17 means real property, other than land, which is 3 12 located in a designated revitalization area and to which 3 13 improvements have been added, during the time the area was so 3 14 designated, which have increased the actual value by at least 3 15 the percent specified in the plan adopted by the city or 3 16 county pursuant to section 404.2 or if no percent is specified 3 17 then by at least fifteen percent, orat least ten percent in3 18the case of real property assessed as residential property or3 19 which improvements have, in the case of land upon which is3 20located more than one building and not assessed as residential3 21property,increased the actual value of the buildings to which 3 22 the improvements have been made by at least fifteen percent. 3 23 "Qualified real estate" also means land upon which no 3 24 structure existed at the start of the new construction, which 3 25 is located in a designated revitalization area and upon which 3 26 new construction has been added during the time the area was 3 27 so designated. "Improvements" as used in this chapter and 3 28 section 419.17 includes rehabilitation and additions to 3 29 existing structures as well as new construction on vacant land 3 30 or on land with existing structures. However, new 3 31 construction on land assessed as agricultural property shall 3 32 not qualify as "improvements" for purposes of this chapter and 3 33 section 419.17 unless the governing body of the city or county 3 34 has presented justification at a public hearing held pursuant 3 35 to section 404.2 for the revitalization of land assessed as 4 1 agricultural property by means of new construction. Such 4 2 justification shall demonstrate, in addition to the other 4 3 requirements of this chapter and section 419.17, that the 4 4 improvements on land assessed as agricultural land will 4 5 utilize the minimum amount of agricultural land necessary to 4 6 accomplish the revitalization of the other classes of property 4 7 within the urban revitalization area. However, if such 4 8 construction, rehabilitation or additions were begun prior to 4 9 January 29, 1979, or one year prior to the adoption by the 4 10 city or county of a plan of urban revitalization pursuant to 4 11 section 404.2, whichever occurs later, the value added by such 4 12 construction, rehabilitation or additions shall not constitute 4 13 an increase in value for purposes of qualifying for the 4 14 exemptions listed in this section. "Actual value added by the 4 15 improvements" as used in this chapter and section 419.17 means 4 16 the actual value added as of the first year for which the 4 17 exemption was received. 4 18 Sec. 7. Section 404.4, unnumbered paragraph 3, Code 1997, 4 19 is amended to read as follows: 4 20 The governing body of the city or county shall approve the 4 21 application, subject to review by the local assessor pursuant 4 22 to section 404.5, if the project is in conformance with the 4 23 plan for revitalization developed by the city or county, is 4 24 located within a designated revitalization area, and if the 4 25 improvements were made during the time the area was so 4 26 designated. The governing body of the city or county shall 4 27 forward for review all approved applications to the 4 28 appropriate local assessor by March 1 of each year with a 4 29 statement indicating whether section 404.3, subsection1,2, 4 30 3, or 4, applies or if a different schedule has been adopted, 4 31 which exemption from that schedule applies. However, if the 4 32 approved application is for an improvement project that will 4 33 be assessed pursuant to sections 428.24 through 428.29, the 4 34 application and statement shall be subject to review by the 4 35 department of revenue and finance and shall be sent to the 5 1 department for its review by March 1. The department shall 5 2 submit the results of its review at the time it certifies the 5 3 assessments to the county under section 428.29. Applications 5 4 for exemption for succeeding years on approved projects shall 5 5 not be required. 5 6 Sec. 8. Section 404.5, unnumbered paragraph 1, Code 1997, 5 7 is amended to read as follows: 5 8 The local assessor shall review each first-year application 5 9 by making a physical review of the property, to determine if 5 10 the improvements made increased the actual value of the 5 11 qualified real estate by at least fifteen percent orat least5 12ten percent in the case of real property assessed as5 13residential property orthe applicable percent increase 5 14 requirement adopted by the city or county under section 404.2. 5 15 If the assessor determines that the actual value of that real 5 16 estate has increased by at least the requisite percent, the 5 17 assessor shall proceed to determine the actual value of the 5 18 property and certify the valuation determined pursuant to 5 19 section 404.3 to the county auditor at the time of 5 20 transmitting the assessment rolls. However, if a new 5 21 structure is erected on land upon which no structure existed 5 22 at the start of the new construction, the assessor shall 5 23 proceed to determine the actual value of the property and 5 24 certify the valuation determined pursuant to section 404.3 to 5 25 the county auditor at the time of transmitting the assessment 5 26 rolls. The assessor shall notify the applicant of the 5 27 determination, and the assessor's decision may be appealed to 5 28 the local board of review at the times specified in section 5 29 441.37. If an application for exemption is denied as a result 5 30 of failure to sufficiently increase the value of the real 5 31 estate as provided in section 404.3, the owner may file a 5 32 first annual application in a subsequent year when additional 5 33 improvements are made to satisfy requirements of section 5 34 404.3, and the provisions of section 404.4 shall apply. After 5 35 the tax exemption is granted, the local assessor shall 6 1 continue to grant the tax exemption, with periodic physical 6 2 review by the assessor, for the time period specified in 6 3 section 404.3, subsection1,2, 3, or 4, or specified in the 6 4 different schedule if one has been adopted, under which the 6 5 exemption was granted. The tax exemptions for the succeeding 6 6 years shall be granted without the taxpayer having to file an 6 7 application for the succeeding years. 6 8 Sec. 9. EFFECTIVE DATE AND APPLICABILITY. This Act takes 6 9 effect July 1, 1998. Any urban revitalization tax exemptions 6 10 for property assessed as residential property which are in 6 11 existence before July 1, 1998, for completed improvement 6 12 projects shall continue until their expiration. Any proposal 6 13 for an improvement project for property assessed as 6 14 residential property approved by a city or county prior to 6 15 July 1, 1998, which has not been completed by that date shall 6 16 receive an exemption from taxation and that exemption shall 6 17 continue until its expiration. On or after July 1, 1998, a 6 18 city or county shall not give consideration to new improvement 6 19 project proposals for property assessed as residential 6 20 property in urban revitalization areas established before July 6 21 1, 1998. 6 22 EXPLANATION 6 23 This bill repeals the urban revitalization tax exemption 6 24 for residential property, effective July 1, 1998. Existing 6 25 exemptions for completed improvement projects shall continue 6 26 until their expiration. Improvement projects approved for 6 27 exemption by a city or county but which have not been 6 28 completed by July 1, 1998, will be allowed the exemption until 6 29 their expiration. Revitalization areas in existence on July 6 30 1, 1998, will not be allowed to add new residential property 6 31 improvement projects for exemption on or after July 1, 1998. 6 32 LSB 2003YH 77 6 33 sc/jj/8
Text: HF00198 Text: HF00200 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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