Senate
File
480
-
Introduced
SENATE
FILE
480
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
278)
(SUCCESSOR
TO
SF
25)
A
BILL
FOR
An
Act
authorizing
a
city
or
county
to
provide
a
property
tax
1
exemption
for
value
added
by
improvements
to
residential
2
property
that
is
a
public
nuisance.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1492SZ
(2)
86
md/sc
S.F.
480
Section
1.
Section
364.19,
Code
2015,
is
amended
to
read
as
1
follows:
2
364.19
Contracts
to
provide
services
to
tax-exempt
property.
3
A
city
council
or
county
board
of
supervisors
may
enter
into
4
a
contract
with
a
person
whose
property
is
totally
or
partially
5
exempt
from
taxation
under
chapter
404
,
chapter
404B
,
section
6
427.1
,
or
section
427B.1
,
or
section
427B.10,
for
the
city
or
7
county
to
provide
specified
services
to
that
person
including
8
but
not
limited
to
police
protection,
fire
protection,
9
street
maintenance,
and
waste
collection.
The
contract
shall
10
terminate
as
of
the
date
previously
exempt
property
becomes
11
subject
to
taxation.
12
Sec.
2.
NEW
SECTION
.
427B.10
Residential
nuisance
property
13
——
value
added
exemption
from
tax.
14
1.
A
city
council
or
a
county
board
of
supervisors
may
15
provide
by
ordinance
for
an
exemption
from
property
taxation
16
of
the
actual
value
added
by
improvements
made
to
residential
17
property
if
the
property
is
a
public
nuisance
prior
to
the
18
improvements.
A
city
council
may
provide
for
an
exemption
to
19
such
property
located
within
the
boundaries
of
the
city
and
the
20
county
board
of
supervisors
may
provide
for
an
exemption
to
21
such
property
located
outside
the
boundaries
of
a
city.
22
2.
All
property
described
in
subsection
1
for
which
an
23
exemption
has
been
approved
by
ordinance
is
eligible
to
receive
24
a
one
hundred
percent
exemption
from
taxation
on
the
actual
25
value
added
by
the
improvements.
The
exemption
is
for
a
26
period
of
ten
years
beginning
not
later
than
the
first
year
27
in
which
all
improvements
described
in
the
application
are
28
first
assessed
for
taxation.
A
property
tax
exemption
under
29
this
section
shall
not
be
granted
if
the
property
for
which
30
the
exemption
is
claimed
has
received
any
other
property
tax
31
exemption
authorized
by
law
for
the
actual
value
added
to
the
32
property.
33
3.
a.
The
ordinance
providing
for
the
exemption
may
34
designate
a
length
of
time
of
less
than
ten
years
that
the
35
-1-
LSB
1492SZ
(2)
86
md/sc
1/
5
S.F.
480
exemption
shall
be
available
and
may
designate
an
exemption
1
percentage
or
schedule
of
percentages
that
is
less
than
one
2
hundred
percent.
3
b.
The
city
council
or
the
board
of
supervisors
may,
as
part
4
of
the
resolution
approving
an
exemption
application,
specify
5
an
exemption
duration
or
exemption
percentage
that
is
different
6
than
that
designated
in
the
ordinance.
However,
the
different
7
duration
or
percentage
specified
in
the
resolution
shall
not
8
exceed
that
which
is
provided
for
in
the
ordinance.
9
4.
a.
An
application
shall
be
filed
for
each
new
exemption
10
claimed.
The
first
application
for
an
exemption
shall
be
filed
11
by
the
owner
of
the
property
with
the
governing
body
of
the
12
city
or
county
in
which
the
property
is
located
by
February
13
1
of
the
assessment
year
for
which
the
exemption
is
first
14
claimed,
but
not
later
than
the
year
in
which
all
improvements
15
included
in
the
application
are
first
assessed
for
taxation.
16
b.
The
application
shall,
at
a
minimum,
contain
the
nature
17
of
the
improvements,
the
cost
of
the
improvements,
a
list
of
18
all
other
federal,
state,
or
local
government
tax
credits,
19
exemptions,
grants,
forgivable
loans,
or
other
forms
of
20
financial
assistance
received
by
or
applied
for
by
the
owner
21
for
completion
of
the
improvements,
and
the
estimated
or
actual
22
date
of
completion
of
the
improvements.
23
c.
An
owner
may
submit
an
application
for
an
exemption
24
under
this
section
to
the
governing
body
of
the
city
or
25
county
to
receive
prior
approval
for
eligibility
for
a
tax
26
exemption.
Such
prior
approval
shall
not
entitle
the
owner
27
to
exemption
from
taxation
until
the
improvements
have
been
28
completed,
a
physical
review
of
the
property
has
been
conducted
29
by
the
assessor
pursuant
to
subsection
5,
and
the
assessor
has
30
determined
that
the
actual
value
of
the
property
has
increased
31
as
a
result
of
the
improvements.
32
d.
Approval
of
an
exemption
application
shall
be
by
33
resolution
of
the
governing
body
of
the
city
or
county.
34
e.
If
an
application
for
an
exemption
is
not
approved,
the
35
-2-
LSB
1492SZ
(2)
86
md/sc
2/
5
S.F.
480
owner
may
submit
an
amended
application
for
the
governing
body
1
to
approve
or
reject.
2
5.
The
local
assessor
shall
review
each
first-year
3
application
by
making
a
physical
review
of
the
property
to
4
determine
if
the
improvements
made
increased
the
actual
value
5
of
the
approved
property.
If
the
assessor
determines
that
6
the
actual
value
of
that
property
has
increased,
the
assessor
7
shall
proceed
to
determine
the
actual
value
of
the
property
8
and
certify
the
valuation
to
the
county
auditor
at
the
time
9
of
transmitting
the
assessment
rolls.
If
an
application
for
10
exemption
is
denied
as
a
result
of
failure
to
increase
the
11
value
of
the
property,
the
owner
may,
notwithstanding
the
12
filing
deadlines
in
subsection
4,
file
a
first
application
in
a
13
subsequent
year
when
additional
improvements
are
made.
After
14
the
tax
exemption
is
granted,
the
local
assessor
shall
continue
15
to
grant
the
tax
exemption,
with
periodic
physical
review
by
16
the
assessor,
for
the
time
period
specified
in
subsection
2,
17
or
specified
in
a
different
schedule
if
one
has
been
adopted
18
under
subsection
3,
paragraph
“a”
,
or
in
the
resolution
of
the
19
governing
body
under
which
the
exemption
was
granted
pursuant
20
to
subsection
3,
paragraph
“b”
.
21
6.
When
in
the
opinion
of
the
city
council
or
the
county
22
board
of
supervisors
continuation
of
the
exemption
granted
by
23
this
section
ceases
to
be
of
benefit
to
the
city
or
county,
the
24
city
council
or
the
county
board
of
supervisors
may
repeal
the
25
ordinance,
but
all
existing
exemptions
shall
continue
until
26
their
expiration.
27
7.
For
the
purposes
of
this
section,
unless
the
context
28
otherwise
requires:
29
a.
“Actual
value
added”
means
the
actual
value
added
as
of
30
the
first
year
for
which
the
exemption
is
received.
31
b.
“Owner”
includes
a
person
who
is
purchasing
property
32
by
installment
contract
or
under
a
duly
executed
purchase
33
contract.
34
c.
“Public
nuisance”
means
a
building
that
is
a
menace
to
35
-3-
LSB
1492SZ
(2)
86
md/sc
3/
5
S.F.
480
the
public
health,
welfare,
or
safety,
or
that
is
structurally
1
unsafe,
unsanitary,
or
not
provided
with
adequate
safe
egress,
2
or
that
constitutes
a
fire
hazard,
or
is
otherwise
dangerous
to
3
human
life,
or
that
in
relation
to
the
existing
use
constitutes
4
a
hazard
to
the
public
health,
welfare,
or
safety
by
reason
5
of
inadequate
maintenance,
dilapidation,
obsolescence,
or
6
abandonment.
7
Sec.
3.
IMPLEMENTATION
OF
ACT.
Section
25B.7
shall
not
8
apply
to
the
property
tax
exemption
established
in
this
Act.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
authorizes
a
city
council
or
a
county
board
of
13
supervisors
to
provide
by
ordinance
for
an
exemption
from
14
property
taxation
of
the
actual
value
added
to
residential
15
property
by
improvements
to
the
property
if
the
property
16
is
a
public
nuisance,
as
defined
in
the
bill,
prior
to
the
17
improvements.
18
If
approved
by
the
governing
body
of
the
city
or
the
board
of
19
supervisors
of
a
county,
the
property
is
eligible
to
receive
20
a
100
percent
exemption
from
taxation
on
the
actual
value
21
added
by
the
improvements.
The
exemption
is
for
a
period
of
22
10
years
beginning
not
later
than
the
first
year
in
which
all
23
improvements
described
in
the
application
are
first
assessed
24
for
taxation.
The
ordinance
providing
for
the
exemption
from
25
tax
may
designate
a
length
of
time
of
less
than
10
years
and
may
26
designate
an
exemption
percentage
or
schedule
of
percentages
27
that
is
less
than
100
percent.
The
resolution
approving
the
28
exemption
application
may
also
provide
for
a
different
period
29
of
exemption
and
exemption
percentage
than
what
is
provided
in
30
the
ordinance,
but
not
exceeding
the
duration
and
percentages
31
in
the
ordinance.
32
The
application
for
an
exemption
must
be
filed
by
the
33
owner
of
the
property
with
the
governing
body
of
the
city
or
34
county
in
which
the
property
is
located
by
February
1
of
the
35
-4-
LSB
1492SZ
(2)
86
md/sc
4/
5
S.F.
480
assessment
year
for
which
the
exemption
is
first
claimed,
but
1
not
later
than
the
year
in
which
all
improvements
included
in
2
the
application
are
first
assessed
for
taxation.
The
bill
3
authorizes
an
owner
to
submit
an
application
for
an
exemption
4
to
receive
prior
approval
for
eligibility
for
a
tax
exemption.
5
Such
prior
approval
does
not
entitle
the
owner
to
exemption
6
from
taxation
until
the
improvements
have
been
completed,
a
7
physical
review
of
the
property
has
been
conducted
by
the
8
assessor,
and
the
assessor
has
determined
that
the
actual
value
9
of
the
property
has
increased
as
a
result
of
the
improvements.
10
The
bill
requires
the
application
to
list
all
other
federal,
11
state,
or
local
government
tax
credits,
exemptions,
grants,
12
forgivable
loans,
or
other
forms
of
financial
assistance
13
received
by
or
applied
for
by
the
owner
for
completion
of
the
14
improvements.
15
The
bill
requires
the
assessor
to
review
each
first-year
16
application
by
making
a
physical
review
of
the
property,
to
17
determine
if
the
improvements
made
increased
the
actual
value
18
of
the
approved
property.
If
an
application
for
exemption
19
is
denied
as
a
result
of
failure
to
increase
the
value
of
20
the
property,
the
owner
may
file
a
first
application
in
a
21
subsequent
year
when
additional
improvements
are
made.
After
22
the
tax
exemption
is
granted,
the
local
assessor
shall
continue
23
to
grant
the
tax
exemption,
with
periodic
physical
review
by
24
the
assessor,
for
the
time
period
authorized.
25
Code
section
25B.7
does
not
apply
to
the
property
tax
26
exemption
to
the
bill.
Code
section
25B.7
provides
that
for
a
27
property
tax
credit
or
exemption
enacted
on
or
after
January
28
1,
1997,
if
a
state
appropriation
made
to
fund
the
credit
29
or
exemption
is
not
sufficient
to
fully
fund
the
credit
or
30
exemption,
the
political
subdivision
is
required
to
extend
31
to
the
taxpayer
only
that
portion
of
the
credit
or
exemption
32
estimated
by
the
department
of
revenue
to
be
funded
by
the
33
state
appropriation.
34
-5-
LSB
1492SZ
(2)
86
md/sc
5/
5