House
File
2551
-
Introduced
HOUSE
FILE
2551
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2391)
A
BILL
FOR
An
Act
establishing
an
exemption
for
certain
property
1
classified
as
agricultural
based
on
levee
and
drainage
2
district
assessments.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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5777HV
(2)
89
md/jh
H.F.
2551
Section
1.
Section
427.1,
Code
2022,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
42.
Certain
property
classified
as
3
agricultural
located
in
a
levee
and
drainage
district.
For
4
assessment
years
beginning
on
or
after
January
1,
2023,
5
a
portion
of
the
actual
value
of
property
classified
as
6
agricultural,
as
determined
on
the
basis
of
productivity
and
7
net
earning
capacity
as
determined
under
section
441.21,
8
subsection
1,
paragraph
“e”
,
located
in
a
levee
and
drainage
9
district
under
chapter
468,
if
the
district
is
adjacent
to
10
both
the
Mississippi
river
and
the
Iowa
river
and
consists
of
11
at
least
thirty-five
thousand
acres.
The
exemption
on
such
12
property
classified
as
agricultural
shall
be
allowed
if
the
13
property’s
per-acre
levee
and
drainage
district
taxes
assessed
14
under
chapter
468
exceed
the
applicable
county’s
per-acre
15
five-year
average
levee
and
drainage
district
tax
amount.
The
16
amount
of
the
exemption
shall
be
an
amount
equal
to
the
number
17
of
net
acres
comprising
the
property
multiplied
by
the
amount
18
by
which
the
property’s
per-acre
levee
and
drainage
district
19
taxes
exceed
the
county’s
per-acre
five-year
average
levee
20
and
drainage
district
tax
amount
divided
by
seven
percent.
21
However,
in
no
case
shall
the
amount
of
the
exemption
under
22
this
subsection
exceed
fifty
percent
of
the
actual
land
value
23
of
the
property.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
Code
section
441.21
provides
that
the
actual
value
of
28
agricultural
property
shall
be
determined
on
the
basis
29
of
productivity
and
net
earning
capacity
of
the
property
30
determined
on
the
basis
of
its
use
for
agricultural
purposes
31
capitalized
at
a
rate
of
7
percent
and
applied
uniformly
among
32
counties
and
among
classes
of
property.
33
Under
this
bill,
for
assessment
years
beginning
on
or
after
34
January
1,
2023,
a
portion
of
the
actual
value
of
property
35
-1-
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5777HV
(2)
89
md/jh
1/
2
H.F.
2551
classified
as
agricultural
located
in
a
levee
and
drainage
1
district
that
is
located
adjacent
to
both
the
Mississippi
river
2
and
the
Iowa
river
and
consists
of
at
least
35,000
acres
shall
3
be
exempt
from
taxation.
The
exemption
on
such
agricultural
4
property
shall
be
allowed
if
the
property’s
per-acre
levee
and
5
drainage
district
taxes
assessed
exceed
the
applicable
county’s
6
per-acre
five-year
average
levee
and
drainage
district
tax
7
amount.
The
amount
of
the
exemption
shall
be
an
amount
equal
8
to
the
number
of
net
acres
comprising
the
property
multiplied
9
by
the
amount
by
which
the
property’s
per-acre
levee
and
10
drainage
district
taxes
exceed
the
county’s
per-acre
five-year
11
average
levee
and
drainage
district
tax
amount
divided
by
7
12
percent.
However,
in
no
case
shall
the
amount
of
the
exemption
13
exceed
50
percent
of
the
actual
land
value
of
the
property.
14
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(2)
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2/
2