SSB 3120 (LSB 5542XC (2) 83)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM)

A BILL FOR

An Act relating to the definition of agricultural property for property taxation purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 441.21, Code Supplement 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  13.  a.  Beginning with valuations established on or after January 1, 2011, as used in this section, “agricultural property” shall not include any parcel of real estate upon which a building that is primarily used or intended for human habitation is located unless such parcel is in good faith used primarily for agricultural purposes and one of the following conditions are met:
   (1)  The parcel and the improvements and structures located on such parcel, other than the building used or intended for human habitation, are used for the production of not less than ten acres of row crops.
   (2)  The parcel of real estate and the improvements and structures located on such parcel, other than the building used or intended for human habitation, produce a five-year average of not less than two thousand dollars of gross income per year from farming or ranching.
   b.  Contiguous parcels that are owned by the same taxpayer may be combined for determining the primary use, number of acres used for the production of row crops, or gross income from farming or ranching under paragraph “a”.
   c.  A building primarily used or intended for human habitation that is located on a parcel classified as agricultural property pursuant to the requirements of paragraph “a” shall be valued as rural residential property pursuant to subsection 6.
EXPLANATION
   This bill amends the definition of agricultural property for property taxation purposes.
   The bill provides that beginning with real property valuations established on or after January 1, 2011, agricultural property shall not include any parcel of real estate upon which a building that is primarily used or intended for human habitation is located unless that parcel is in good faith used primarily for agricultural purposes and the parcel and the improvements and structures located on such parcel, other than the building used or intended for human habitation, are used for the production of not less than 10 acres of row crops or produce a five-year average of not less than $2,000 per year of gross income from farming or ranching. 
   The bill allows contiguous parcels that are owned by the same taxpayer to be combined for determining the primary use, number of acres used for the production of row crops, or gross income from farming or ranching. 
   The bill also provides that any building located on a parcel that is classified as agricultural property pursuant to the requirements of the bill and that is primarily used or intended for human habitation shall be classified as residential property for property taxation purposes.