House File 503 - Introduced HOUSE FILE 503 BY SWAIM A BILL FOR An Act relating to agricultural land for purposes of awarding 1 financial incentives and property tax valuation, and 2 including effective date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2252HH (3) 84 da/sc

H.F. 503 Section 1. NEW SECTION . 161A.77 Agricultural land —— 1 financial incentives. 2 A landowner shall not be eligible for financial incentives 3 to install, repair, or maintain a soil and water conservation 4 practice or an erosion control practice on agricultural land 5 unless the owner of the land files an affidavit with the 6 division or a district as required by the division stating that 7 the land is agricultural land. The affidavit shall include 8 a copy of the taxpayer’s schedule F form or internal revenue 9 service form 4835. Notwithstanding chapter 22, the schedule F 10 or form 4835 submitted pursuant to this section shall be kept 11 confidential and used only for the purposes of this section. 12 Sec. 2. NEW SECTION . 441.21A Agricultural property —— tax 13 assessment. 14 For land to be classified and valued as agricultural 15 property for assessment and taxation purposes, a taxpayer must 16 file an affidavit with the assessor on or before February 15 17 of each assessment year stating that the land is agricultural 18 property. The affidavit shall include a copy of the taxpayer’s 19 schedule F form or internal revenue service form 4835. The 20 assessor may require that the affidavit include a supplemental 21 return pursuant to section 441.19 for all tracts of land and 22 improvements and structures located on the land which are in 23 good faith used primarily for agricultural purposes, except 24 buildings which are primarily used or intended for human 25 habitation. Notwithstanding chapter 22, the schedule F or form 26 4835 submitted pursuant to this section shall be confidential 27 to the assessor, board of review, property assessment appeal 28 board, or director of revenue, and shall not be open to public 29 inspection. 30 Sec. 3. EFFECTIVE DATE. Section 441.21A, as enacted in this 31 Act, takes effect on January 1, 2012. 32 Sec. 4. APPLICABILITY DATE. Section 441.21A, as enacted 33 in this Act, applies to assessment years beginning on or after 34 January 1, 2012. 35 -1- LSB 2252HH (3) 84 da/sc 1/ 2

H.F. 503 EXPLANATION 1 This bill applies to agricultural land for purposes of 2 awarding state financial incentives and for purposes of 3 property tax valuation. The bill provides that an owner 4 of agricultural land must file an affidavit with the soil 5 conservation division or a soil and water conservation district 6 in order to be eligible for financial incentives to practice 7 soil and water conservation or erosion control. The bill 8 also requires a property taxpayer to file an affidavit with 9 the assessor for purposes of valuing agricultural property 10 for tax assessment and taxation purposes. In both cases, the 11 affidavit must include a copy of the schedule F form (income 12 and expenses from farming) or internal revenue service form 13 4835 (farm rental income and expenses). The schedule F or form 14 4835 must be kept confidential. The provisions affecting the 15 valuation of property take effect January 1, 2012, and apply to 16 assessment years beginning on or after January 1, 2012. 17 -2- LSB 2252HH (3) 84 da/sc 2/ 2