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