HSB 206 (LSB 2483YC (2) 85)

HOUSE FILE _____

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON SCHULTZ)

A BILL FOR

An Act relating to the classification of property as agricultural property for property tax purposes and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 441.19, Code 2013, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  For property 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 for the most recent tax year, as defined in section 442.4, if the taxpayer was required to complete such forms for the most recent tax year. The assessor may require that the affidavit include a supplemental return made pursuant to this section 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. The schedule F or form 4835 submitted pursuant to this subsection 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. 2.  APPLICABILITY.  This Act applies to assessment years beginning on or after January 1, 2014.
EXPLANATION
   This bill provides that for property 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 bill requires the affidavit to include a copy of the taxpayer’s schedule F form (“Profit or Loss from Farming”) or internal revenue service form 4835 (“Farm Rental Income and Expenses”) for the most recent tax year if the taxpayer was required to complete such forms for the most recent tax year and the assessor may require a supplemental return for such tracts of land pursuant to the provisions of current Code section 441.19(1). The bill provides that the schedule F or form 4835 submitted to the assessor 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.
   The bill applies to assessment years beginning on or after January 1, 2014.