House File 2152 - Introduced



                                       HOUSE FILE       
                                       BY  PAULSEN


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to imposition of city taxes against property
  2    located in certain annexation areas and including effective
  3    and applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5207YH 81
  6 sc/je/5

PAG LIN



  1  1    Section 1.  Section 368.7, subsection 5, Code Supplement
  1  2 2005, is amended to read as follows:
  1  3    5.  In the discretion of a city council, the resolution
  1  4 provided for in subsection 1, paragraph "d", or subsection 2
  1  5 or 3, may include a provision for a transition for the
  1  6 imposition of city taxes against property within the
  1  7 annexation area as provided in section 368.11, subsection 3,
  1  8 paragraph "m".  However, the city shall provide for such
  1  9 transition for the imposition of city taxes against that
  1 10 property that is included in the territory to be annexed
  1 11 without the consent of the landowner.
  1 12    Sec. 2.  Section 368.11, subsection 3, paragraph m, Code
  1 13 Supplement 2005, is amended to read as follows:
  1 14    m.  In the discretion of a city council, a A provision for
  1 15 a transition for the imposition of city taxes against property
  1 16 within an annexation area.  The provision shall allow for an
  1 17 exemption from taxation of the following percentages of
  1 18 assessed valuation according to the following schedule:
  1 19    (1)  For the first and second years, seventy=five percent.
  1 20    (2)  For the third and fourth years, sixty percent.
  1 21    (3)  For the fifth and sixth years, forty=five percent.
  1 22    (4)  For the seventh and eighth years, thirty percent.
  1 23    (5)  For the ninth and tenth years, fifteen percent.
  1 24    An alternative schedule may be adopted by the city council.
  1 25 However, an An alternative schedule shall not allow a greater
  1 26 an exemption that is equivalent to or greater than that
  1 27 provided in this paragraph.  The exemption shall be applied in
  1 28 the levy and collection of taxes.  The provision may also
  1 29 allow for the partial provision of city services during the
  1 30 time in which the exemption from taxation is in effect.
  1 31    Sec. 3.  EFFECTIVE AND APPLICABILITY PROVISIONS.  This Act,
  1 32 being deemed of immediate importance, takes effect upon
  1 33 enactment and applies to annexation applications submitted to
  1 34 a city council and petitions for involuntary annexation filed
  1 35 with the city development board on or after the effective date
  2  1 of this Act.
  2  2                           EXPLANATION
  2  3    This bill requires a city to implement the statutory
  2  4 transition for the imposition of city taxes against property
  2  5 to be annexed if the property is included in a voluntary
  2  6 annexation application without the consent of the landowner
  2  7 (i.e., where up to 20 percent of the annexed property may be
  2  8 annexed without consent) or if the property is included in an
  2  9 involuntary annexation petition.  The bill also provides that
  2 10 if a city provides its own schedule of exemption from city
  2 11 taxes as an alternative to the statutory schedule, the
  2 12 alternative exemption must be equivalent to or greater than
  2 13 the statutory exemption.
  2 14    The bill takes effect upon enactment and applies to
  2 15 annexation applications submitted to a city council and
  2 16 petitions for involuntary annexation filed with the city
  2 17 development board on or after the effective date.
  2 18 LSB 5207YH 81
  2 19 sc:rj/je/5.1