House
File
2391
-
Introduced
HOUSE
FILE
2391
BY
KERR
A
BILL
FOR
An
Act
establishing
an
exemption
for
certain
agricultural
1
property
based
on
levee
and
drainage
district
assessments.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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2391
Section
1.
Section
427.1,
Code
2022,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
42.
Certain
agricultural
property
located
in
3
a
levee
and
drainage
district.
For
assessment
years
beginning
4
on
or
after
January
1,
2023,
a
portion
of
the
actual
value
5
of
agricultural
property,
as
determined
on
the
basis
of
6
productivity
and
net
earning
capacity
as
determined
under
7
section
441.21,
subsection
1,
paragraph
“e”
,
located
in
a
8
levee
and
drainage
district
under
chapter
468,
if
the
district
9
is
adjacent
to
both
the
Mississippi
river
and
the
Iowa
river
10
and
consists
of
at
least
thirty-five
thousand
acres.
The
11
exemption
on
such
agricultural
property
shall
be
allowed
if
the
12
property’s
per-acre
levee
and
drainage
district
taxes
assessed
13
under
chapter
468
exceed
the
applicable
county’s
per-acre
14
five-year
average
levee
and
drainage
district
tax
amount.
The
15
amount
of
the
exemption
shall
be
an
amount
equal
to
the
number
16
of
acres
comprising
the
property
multiplied
by
the
quotient
of
17
the
amount
by
which
the
property’s
per-acre
levee
and
drainage
18
district
taxes
exceed
the
county’s
per-acre
five-year
average
19
tax
amount
divided
by
seven
percent.
However,
in
no
case
shall
20
the
amount
of
the
exemption
under
this
subsection
exceed
fifty
21
percent
of
the
actual
value
of
the
property.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
Code
section
441.21
provides
that
the
actual
value
of
26
agricultural
property
shall
be
determined
on
the
basis
27
of
productivity
and
net
earning
capacity
of
the
property
28
determined
on
the
basis
of
its
use
for
agricultural
purposes
29
capitalized
at
a
rate
of
7
percent
and
applied
uniformly
among
30
counties
and
among
classes
of
property.
31
Under
this
bill,
for
assessment
years
beginning
on
or
after
32
January
1,
2023,
a
portion
of
the
actual
value
of
agricultural
33
property
located
in
a
levee
and
drainage
district
that
is
34
located
adjacent
to
both
the
Mississippi
river
and
the
Iowa
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2391
river
and
consists
of
at
least
35,000
acres
shall
be
exempt
1
from
taxation.
The
exemption
on
such
agricultural
property
2
shall
be
allowed
if
the
property’s
per-acre
levee
and
drainage
3
district
taxes
assessed
exceed
the
applicable
county’s
per-acre
4
five-year
average
levee
and
drainage
district
tax
amount.
The
5
amount
of
the
exemption
shall
be
an
amount
equal
to
the
number
6
of
acres
comprising
the
property
multiplied
by
the
quotient
of
7
the
amount
by
which
the
property’s
per-acre
levee
and
drainage
8
district
taxes
exceed
the
county’s
per-acre
five-year
average
9
tax
amount
divided
by
7
percent.
However,
in
no
case
shall
the
10
amount
of
the
exemption
exceed
50
percent
of
the
actual
value
11
of
the
property.
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