HOUSE FILE 503

BY  SWAIM

A BILL FOR

An Act relating to agricultural land for purposes of awarding financial incentives and property tax valuation, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  NEW SECTION.  161A.77  Agricultural land —— financial incentives.
   A landowner shall not be eligible for financial incentives to install, repair, or maintain a soil and water conservation practice or an erosion control practice on agricultural land unless the owner of the land files an affidavit with the division or a district as required by the division stating that the land is agricultural land. The affidavit shall include a copy of the taxpayer’s schedule F form or internal revenue service form 4835. Notwithstanding chapter 22, the schedule F or form 4835 submitted pursuant to this section shall be kept confidential and used only for the purposes of this section.
   Sec. 2.  NEW SECTION.  441.21A  Agricultural property —— tax assessment.
   For land to be classified and valued as agricultural property for assessment and taxation purposes, a taxpayer must file an affidavit with the assessor on or before February 15 of each assessment year stating that the land is agricultural property. The affidavit shall include a copy of the taxpayer’s schedule F form or internal revenue service form 4835. The assessor may require that the affidavit include a supplemental return pursuant to section 441.19 for all tracts of land and improvements and structures located on the land which are in good faith used primarily for agricultural purposes, except buildings which are primarily used or intended for human habitation. Notwithstanding chapter 22, the schedule F or form 4835 submitted pursuant to this section shall be confidential to the assessor, board of review, property assessment appeal board, or director of revenue, and shall not be open to public inspection.
   Sec. 3.  EFFECTIVE DATE.  Section 441.21A, as enacted in this Act, takes effect on January 1, 2012.
   Sec. 4.  APPLICABILITY DATE.  Section 441.21A, as enacted in this Act, applies to assessment years beginning on or after January 1, 2012.
EXPLANATION
   This bill applies to agricultural land for purposes of awarding state financial incentives and for purposes of property tax valuation. The bill provides that an owner of agricultural land must file an affidavit with the soil conservation division or a soil and water conservation district in order to be eligible for financial incentives to practice soil and water conservation or erosion control. The bill also requires a property taxpayer to file an affidavit with the assessor for purposes of valuing agricultural property for tax assessment and taxation purposes. In both cases, the affidavit must include a copy of the schedule F form (income and expenses from farming) or internal revenue service form 4835 (farm rental income and expenses). The schedule F or form 4835 must be kept confidential. The provisions affecting the valuation of property take effect January 1, 2012, and apply to assessment years beginning on or after January 1, 2012.