Senate File 2181 - Introduced SENATE FILE BY BOLKCOM, KREIMAN, HATCH, DVORSKY, HANCOCK, SCHOENJAHN, KIBBIE, CONNOLLY, and RIELLY Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing an exemption from property taxation for 2 agricultural land used in organic agricultural production and 3 providing an applicability date. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5743SS 81 6 sc/gg/14 PAG LIN 1 1 Section 1. Section 427.1, Code Supplement 2005, is amended 1 2 by adding the following new subsection: 1 3 NEW SUBSECTION. 35. CERTIFIED ORGANIC LAND. Agricultural 1 4 land used in the production of organic agricultural products. 1 5 A person owning land which qualifies for a property tax 1 6 exemption under this subsection shall apply to the county 1 7 assessor not later than February 1 of the first year for which 1 8 the exemption is requested. The application shall be made on 1 9 forms prescribed by the department of revenue. The 1 10 application shall be accompanied by a certificate issued by 1 11 the department of agriculture and land stewardship certifying 1 12 that the production methods used on the land meet the 1 13 requirements of the Iowa organic program under chapter 190C or 1 14 the requirements of the United States department of 1 15 agriculture under the national organic program as defined in 1 16 section 190C.1. 1 17 Each year the assessor shall verify with the department of 1 18 agriculture and land stewardship that the organic land 1 19 certification is in good standing. The assessor shall also 1 20 conduct an annual inspection of the land to verify that 1 21 organic crop or livestock production is taking place. If it 1 22 appears that organic crop or livestock production has not 1 23 occurred at any time during the calendar year preceding the 1 24 assessment year, the assessor shall notify the landowner that 1 25 the land will not receive an exemption under this subsection 1 26 for the assessment year. The owner may seek review of the 1 27 assessor's decision with the county board of supervisors. If 1 28 organic certification is revoked, the land is subject to 1 29 taxation from the earlier of the date of revocation or the 1 30 date the complaint was filed, or the inspection conducted, 1 31 that resulted in revocation. If organic certification is 1 32 withdrawn, the land is subject to taxation from the earlier of 1 33 the date of withdrawal or the date the complaint was filed, or 1 34 the inspection conducted, that resulted in withdrawal of 1 35 certification. 2 1 For purposes of this subsection, "land" includes the area 2 2 of a buffer zone, windbreak, or hedgerow, all of which are 2 3 maintained for the purpose of keeping organic production 2 4 separate from nonorganic production. 2 5 Sec. 2. STATE FUNDING OF TAX CREDITS AND EXEMPTIONS == 2 6 INAPPLICABILITY. The provisions in section 25B.7, relating to 2 7 the obligation of the state to reimburse local jurisdictions 2 8 for property tax credits and exemptions, do not apply to 2 9 section 427.1, subsection 35, as enacted in this Act. 2 10 Sec. 3. APPLICABILITY DATE. This Act applies to 2 11 assessment years beginning on or after January 1, 2007. 2 12 EXPLANATION 2 13 This bill provides a property tax exemption for 2 14 agricultural land certified as organic land by the Iowa 2 15 department of agriculture and land stewardship. 2 16 The bill provides that the provision in Code section 25B.7 2 17 that requires the state to fund reimbursement for property tax 2 18 credits and exemptions does not apply to the exemption 2 19 provided in the bill. 2 20 The bill applies to assessment years beginning on or after 2 21 January 1, 2007. 2 22 LSB 5743SS 81 2 23 sc:nh/gg/14