Senate File 24 - Introduced
SENATE FILE
BY WARNSTADT and WIECK
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the exemption from city taxes of land included
2 in a city's involuntary annexation petition and including
3 effective and applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1135XS 81
6 sc/sh/8
PAG LIN
1 1 Section 1. Section 368.11, subsection 3, paragraph m, Code
1 2 2005, is amended to read as follows:
1 3 m. In the discretion of a city council, a provision for a
1 4 transition for the imposition of city taxes against property
1 5 within an annexation area. The provision shall not allow a
1 6 greater for an exemption from taxation than the tax exemption
1 7 formula of the following percentages of assessed valuation
1 8 according to the following schedule provided under section
1 9 427B.3, subsections 1 through 5, and:
1 10 (1) For the first and second years, seventy=five percent.
1 11 (2) For the third and fourth years, sixty percent.
1 12 (3) For the fifth and sixth years, forty=five percent.
1 13 (4) For the seventh and eighth years, thirty percent.
1 14 (5) For the ninth and tenth years, fifteen percent.
1 15 An alternative schedule may be adopted by the city council.
1 16 However, an alternative schedule shall not allow a greater
1 17 exemption than that provided in this paragraph. The exemption
1 18 shall be applied in the levy and collection of taxes. The
1 19 provision may also allow for the partial provision of city
1 20 services during the time in which the exemption from taxation
1 21 is in effect.
1 22 Sec. 2. EFFECTIVE AND APPLICABILITY DATES. This Act,
1 23 being deemed of immediate importance, takes effect upon
1 24 enactment and applies to petitions for involuntary annexation
1 25 filed with the city development board on or after the
1 26 effective date of this Act.
1 27 EXPLANATION
1 28 Current law allows a city to include in a petition for
1 29 involuntary annexation a provision for a transition for
1 30 imposition of city taxes within the area proposed to be
1 31 annexed. The provision allows for exemption from city taxes
1 32 of property in the annexed area according to a schedule
1 33 provided in statute or according to an alternative schedule
1 34 adopted by the city council. The alternative schedule cannot
1 35 provide a greater exemption than that provided by the schedule
2 1 specified in statute. The statutory schedule runs for five
2 2 years.
2 3 This bill extends the statutory schedule to 10 years but
2 4 retains the current exemption percentage amounts, extending
2 5 the applicability of each percentage amount to two years
2 6 instead of just one year.
2 7 The bill takes effect upon enactment and applies to
2 8 petitions for involuntary annexation filed with the city
2 9 development board on or after the effective date.
2 10 LSB 1135XS 81
2 11 sc/sh/8