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1 32 withdrawn, the land is subject to taxation from the earlier of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