House File 285 - Introduced
HOUSE FILE
BY PAULSEN and WAGNER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act authorizing counties and cities to establish disaster
2 revitalization areas, providing for a disaster revitalization
3 property tax exemption, and including effective date and
4 retroactive applicability date provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 1063YH 83
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PAG LIN
1 1 Section 1. Section 364.19, Code 2009, is amended to read
1 2 as follows:
1 3 364.19 CONTRACTS TO PROVIDE SERVICES TO TAX=EXEMPT
1 4 PROPERTY.
1 5 A city council or county board of supervisors may enter
1 6 into a contract with a person whose property is totally or
1 7 partially exempt from taxation under chapter 404, chapter
1 8 404B, section 427.1, or section 427B.1, for the city or county
1 9 to provide specified services to that person including but not
1 10 limited to police protection, fire protection, street
1 11 maintenance, and waste collection. The contract shall
1 12 terminate as of the date previously exempt property becomes
1 13 subject to taxation.
1 14 Sec. 2. NEW SECTION. 404B.1 DISASTER REVITALIZATION
1 15 AREA.
1 16 1. a. The governing body of a city may, by ordinance,
1 17 designate an area of the city a disaster revitalization area
1 18 if that area is within a county or portion of a county
1 19 declared a disaster area by the governor or a federal
1 20 official.
1 21 b. The governing body of a county may, by ordinance,
1 22 designate an area of the county outside the boundaries of a
1 23 city as a disaster revitalization area if that area is within
1 24 a county or portion of a county declared a disaster area by
1 25 the governor or a federal official.
1 26 2. A disaster revitalization area shall be composed of
1 27 contiguous parcels. However, the governing body of a city or
1 28 the governing body of a county may establish more than one
1 29 disaster revitalization area.
1 30 Sec. 3. NEW SECTION. 404B.2 CONDITIONS MANDATORY.
1 31 A city or county may only exercise the authority conferred
1 32 upon it in this chapter after all of the following conditions
1 33 have been met:
1 34 1. The governing body has adopted a resolution finding
1 35 that the area was affected by a natural disaster, that
2 1 revitalization of the area is in the economic interest of the
2 2 residents of the city or county, as applicable, and the area
2 3 substantially meets the criteria of section 404B.1.
2 4 2. The city or county has prepared a proposed plan for the
2 5 designated disaster revitalization area. The proposed
2 6 disaster revitalization plan shall include all of the
2 7 following:
2 8 a. A legal description of the real property forming the
2 9 boundaries of the proposed area along with a map depicting the
2 10 existing parcels of real property.
2 11 b. The assessed valuation of the real property in the
2 12 proposed area as of January 1, 2007, listing the land and
2 13 building values separately.
2 14 c. A list of names and addresses of the owners of record
2 15 of real property within the area.
2 16 d. The existing zoning classifications and district
2 17 boundaries and the existing and proposed land uses within the
2 18 area.
2 19 e. The exemption percentage applicable in the proposed
2 20 area pursuant to section 404B.4.
2 21 f. A statement specifying whether the revitalization is
2 22 applicable to none, some, or all of the property assessed as
2 23 residential, agricultural, commercial, or industrial property
2 24 within the designated area.
2 25 g. A definition of revitalization, including whether it is
2 26 applicable to existing buildings, new construction, or
2 27 development of previously vacant land. A definition of
2 28 revitalization may also include a requirement for a minimum
2 29 increase in assessed valuation of individual parcels of
2 30 property in the area.
2 31 h. A statement specifying the duration of the designated
2 32 disaster revitalization area.
2 33 i. A description of any federal, state, or private grant
2 34 or loan program likely to be a source of funding for
2 35 improvements within the area and a description of any grant or
3 1 loan program which the city or county has or will have as a
3 2 source of funding for improvements within the area.
3 3 3. a. The city or county has scheduled a public hearing
3 4 and published notice of the hearing in accordance with section
3 5 362.3 or 331.305, as applicable. In addition to notice by
3 6 publication, notification shall also be given by ordinary mail
3 7 to the last known address of the owners of record. The city
3 8 or county shall also send notice by ordinary mail addressed to
3 9 the "occupants" of addresses located within the proposed area,
3 10 unless the governing body of the city or county, by reason of
3 11 lack of a reasonably current and complete address list, or for
3 12 other good cause, shall have waived the notice.
3 13 b. The notices in paragraph "a" may contain a statement
3 14 requesting those in attendance at the hearing to indicate the
3 15 precise nature of desired changes in the proposed plan.
3 16 c. The notice provided by mail to owners and occupants
3 17 within the area shall be given no later than thirty days
3 18 before the date of the public hearing.
3 19 4. The public hearing has been held.
3 20 5. The city or county has adopted the proposed or amended
3 21 plan for the disaster revitalization area after the hearing.
3 22 Sec. 4. NEW SECTION. 404B.3 DISASTER REVITALIZATION PLAN
3 23 AMENDMENTS.
3 24 1. The city or county may subsequently amend a disaster
3 25 revitalization plan after a hearing. Notice of the hearing
3 26 shall be published as provided in section 362.3 or 331.305,
3 27 except that at least seven days' notice must be given, and the
3 28 public hearing shall not be held earlier than the next
3 29 regularly scheduled city council or board of supervisors
3 30 meeting following the published notice. Notice shall also be
3 31 provided by ordinary mail to owners and occupants within the
3 32 area and any proposed addition to the area.
3 33 2. A city which has adopted a plan for a disaster
3 34 revitalization area that covers all property within the city
3 35 limits may amend that plan at any time, pursuant to this
4 1 section, to include property which has been or will be annexed
4 2 to the city. The provisions of the original disaster
4 3 revitalization plan shall be applicable to the property that
4 4 is annexed and the property shall be considered to have been
4 5 part of the disaster revitalization area as of the effective
4 6 date of its annexation to the city. The notice and hearing
4 7 provisions of subsection 1 shall apply to amendments under
4 8 this subsection.
4 9 Sec. 5. NEW SECTION. 404B.4 BASIS OF TAX EXEMPTION.
4 10 1. All real property within a disaster revitalization area
4 11 is eligible to receive a one hundred percent exemption from
4 12 taxation on the increase in assessed value of the property, as
4 13 compared to the property's assessed value on January 1, 2007,
4 14 if the increase in assessed value is attributable to
4 15 revitalization of the property occurring between June 1, 2008,
4 16 and December 31, 2014. The exemption is for a period not to
4 17 exceed five years, starting with the assessment year beginning
4 18 on January 1, 2009.
4 19 2. A city or county may adopt a different tax exemption
4 20 percentage than the exemption provided in subsection 1. The
4 21 different percentage adopted shall not allow a greater
4 22 exemption, but may allow a smaller exemption. A different
4 23 percentage adopted by a city or county shall apply to every
4 24 disaster revitalization area within the city or county. The
4 25 owners of real property eligible for the exemption provided in
4 26 this section shall elect to take the exemption or shall elect
4 27 to take an eligible exemption provided under another statute.
4 28 Once the election has been made and the exemption granted, the
4 29 owner is not permitted to change the method of exemption.
4 30 Sec. 6. NEW SECTION. 404B.5 APPLICATION FOR EXEMPTION BY
4 31 PROPERTY OWNER.
4 32 1. An application shall be filed for each revitalization
4 33 project resulting in increased assessed value for which an
4 34 exemption is claimed. The application for exemption shall be
4 35 filed by the owner of the property with the local assessor by
5 1 February 1 of the assessment year in which the increase in
5 2 assessed value is first assessed for taxation, except for the
5 3 assessment year beginning January 1, 2009. Applications for
5 4 the assessment year beginning January 1, 2009, shall be filed
5 5 with the local assessor by May 1, 2009. Applications for
5 6 exemption shall be made on forms prescribed by the local
5 7 assessor and shall contain information pertaining to the
5 8 requirements under this section and any requirements imposed
5 9 by a city or county governing body.
5 10 2. A person may submit a proposal to the governing body of
5 11 a city or county to receive prior approval for eligibility for
5 12 a tax exemption. The governing body of a city or county, by
5 13 ordinance, may give its prior approval of a tax exemption for
5 14 a revitalization project if the project would meet the
5 15 requirements for the exemption under this chapter and as
5 16 established by the city or county. Prior approval does not
5 17 entitle the owner to exemption from taxation until the project
5 18 has been completed and found to meet the requirements for the
5 19 exemption under this chapter and as established by the city or
5 20 county. An owner may submit an application for an exemption
5 21 based on the increase in assessed value attributable to a
5 22 project that is partially completed at the time of the
5 23 assessment. If the tax exemption is not approved, the person
5 24 may submit an amended proposal to the governing body of the
5 25 city or county to approve or reject.
5 26 Sec. 7. NEW SECTION. 404B.6 PHYSICAL REVIEW OF PROPERTY
5 27 BY ASSESSOR.
5 28 The local assessor shall review each application by making
5 29 a physical review of the property to determine if the
5 30 revitalization project increased the assessed value of the
5 31 real property. If the assessor determines that the assessed
5 32 value of the real property has increased, the assessor shall
5 33 proceed to determine the assessed value of the property and
5 34 certify the valuation determined to the county auditor at the
5 35 time of transmitting the assessment rolls. The assessor shall
6 1 notify the applicant of the determination, and the assessor's
6 2 decision may be appealed to the local board of review at the
6 3 times specified in section 441.37. After the tax exemption is
6 4 granted, the local assessor shall continue to grant the tax
6 5 exemption, with periodic physical review by the assessor, for
6 6 the time period specified by ordinance. The tax exemption for
6 7 the succeeding years shall be granted without the taxpayer
6 8 having to file an application for the succeeding years, unless
6 9 additional revitalization projects occur on the property.
6 10 Sec. 8. NEW SECTION. 404B.7 EXPIRATION OR REPEAL OF
6 11 ORDINANCE.
6 12 An ordinance enacted under this chapter shall expire or be
6 13 repealed no later than December 31, 2019.
6 14 Sec. 9. Section 437A.19, subsection 1, paragraph a, Code
6 15 2009, is amended by adding the following new subparagraph:
6 16 NEW SUBPARAGRAPH. (8) The local amount of any major
6 17 addition eligible for the disaster revitalization exemption
6 18 provided for in chapter 404B, by situs.
6 19 Sec. 10. Section 437A.19, subsection 2, Code 2009, is
6 20 amended by adding the following new paragraph:
6 21 NEW PARAGRAPH. g. In the event any taxpayer property is
6 22 eligible for the disaster revitalization tax exemption
6 23 described in chapter 404B, adjust the assessed value of
6 24 taxpayer property within each affected local taxing district
6 25 to reflect such exemption.
6 26 Sec. 11. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
6 27 This Act, being deemed of immediate importance, takes effect
6 28 upon enactment and applies retroactively to January 1, 2009,
6 29 for assessment years beginning on or after that date.
6 30 EXPLANATION
6 31 This bill authorizes cities and counties to designate a
6 32 disaster revitalization area if the area is within a county or
6 33 portion of a county declared a disaster area by the governor
6 34 or a federal official. The bill allows the city or county to
6 35 establish more than one disaster revitalization area within
7 1 its jurisdiction.
7 2 Under the bill, prior to establishment of a disaster
7 3 revitalization area, the city or county must adopt a
7 4 resolution finding that the area was affected by a natural
7 5 disaster and that revitalization of the area is in the city or
7 6 county's economic interest, and the city or county must
7 7 prepare a proposed plan for the designated disaster
7 8 revitalization area. The bill specifies the elements that
7 9 must be included in a plan.
7 10 The bill requires a public hearing prior to establishing a
7 11 disaster revitalization area. Notice by publication and
7 12 notice by mail must be given to all owners of record of real
7 13 property located within the proposed area and the tenants
7 14 living within the proposed area.
7 15 The bill provides that all real property within a disaster
7 16 revitalization area is eligible to receive a 100 percent
7 17 exemption from taxation on the increase in assessed value of
7 18 the property, as compared to the property's assessed value on
7 19 January 1, 2007, if the increase is attributable to
7 20 revitalization of the property occurring between June 1, 2008,
7 21 and December 31, 2014. The exemption is available for a
7 22 period not to exceed five years, starting with the assessment
7 23 year beginning on January 1, 2009. The bill allows a city or
7 24 county to adopt a different tax exemption percentage, so long
7 25 as the exemption percentage applies to every disaster
7 26 revitalization area within the city or county. The bill
7 27 prohibits property owners from utilizing multiple tax
7 28 exemptions for the same increase in assessed value.
7 29 The bill sets forth the exemption application process and
7 30 allows for prior approval of revitalization projects. Under
7 31 the bill, if a tax exemption is granted, the local assessor
7 32 shall continue to grant the tax exemption for succeeding
7 33 years, with periodic physical review by the assessor, without
7 34 the taxpayer having to file an application for the succeeding
7 35 years, unless additional revitalization projects occur on the
8 1 property.
8 2 The bill provides that an ordinance establishing a disaster
8 3 revitalization area and tax exemption shall expire or be
8 4 repealed no later than December 31, 2019.
8 5 The bill makes conforming amendments to valuation reporting
8 6 requirements of taxpayers who are electricity and natural gas
8 7 providers who are receiving a disaster revitalization property
8 8 tax exemption under the bill.
8 9 The bill takes effect upon enactment and applies
8 10 retroactively to assessment years beginning on or after
8 11 January 1, 2009.
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