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House Study Bill 66 - IntroducedA Bill ForAn Act 1establishing an exemption for certain property
2classified as agricultural based on levee and drainage
3district assessments.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 427.1, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 42. Certain property classified as
4agricultural located in a levee and drainage district. For
5assessment years beginning on or after January 1, 2024,
6a portion of the actual value of property classified as
7agricultural, as determined on the basis of productivity and
8net earning capacity as determined under section 441.21,
9subsection 1, paragraph “e”, located in a levee and drainage
10district under chapter 468, if the district is adjacent to
11both the Mississippi river and the Iowa river and consists of
12at least thirty-five thousand acres. The exemption on such
13property classified as agricultural shall be allowed if the
14property’s per-acre levee and drainage district taxes assessed
15under chapter 468 exceed the applicable county’s per-acre
16five-year average levee and drainage district tax amount. The
17amount of the exemption shall be an amount equal to the number
18of net acres comprising the property multiplied by the amount
19by which the property’s per-acre levee and drainage district
20taxes exceed the county’s per-acre five-year average levee
21and drainage district tax amount divided by seven percent.
22However, in no case shall the amount of the exemption under
23this subsection exceed fifty percent of the actual land value
24of the property.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28Code section 441.21 provides that the actual value of
29agricultural property shall be determined on the basis
30of productivity and net earning capacity of the property
31determined on the basis of its use for agricultural purposes
32capitalized at a rate of 7 percent and applied uniformly among
33counties and among classes of property.
34Under this bill, for assessment years beginning on or after
35January 1, 2024, a portion of the actual value of property
-1-1classified as agricultural located in a levee and drainage
2district that is located adjacent to both the Mississippi river
3and the Iowa river and consists of at least 35,000 acres shall
4be exempt from taxation. The exemption on such agricultural
5property shall be allowed if the property’s per-acre levee and
6drainage district taxes assessed exceed the applicable county’s
7per-acre five-year average levee and drainage district tax
8amount. The amount of the exemption shall be an amount equal
9to the number of net acres comprising the property multiplied
10by the amount by which the property’s per-acre levee and
11drainage district taxes exceed the county’s per-acre five-year
12average levee and drainage district tax amount divided by 7
13percent. However, in no case shall the amount of the exemption
14exceed 50 percent of the actual land value of the property.
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2classified as agricultural based on levee and drainage
3district assessments.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 427.1, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 42. Certain property classified as
4agricultural located in a levee and drainage district. For
5assessment years beginning on or after January 1, 2024,
6a portion of the actual value of property classified as
7agricultural, as determined on the basis of productivity and
8net earning capacity as determined under section 441.21,
9subsection 1, paragraph “e”, located in a levee and drainage
10district under chapter 468, if the district is adjacent to
11both the Mississippi river and the Iowa river and consists of
12at least thirty-five thousand acres. The exemption on such
13property classified as agricultural shall be allowed if the
14property’s per-acre levee and drainage district taxes assessed
15under chapter 468 exceed the applicable county’s per-acre
16five-year average levee and drainage district tax amount. The
17amount of the exemption shall be an amount equal to the number
18of net acres comprising the property multiplied by the amount
19by which the property’s per-acre levee and drainage district
20taxes exceed the county’s per-acre five-year average levee
21and drainage district tax amount divided by seven percent.
22However, in no case shall the amount of the exemption under
23this subsection exceed fifty percent of the actual land value
24of the property.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28Code section 441.21 provides that the actual value of
29agricultural property shall be determined on the basis
30of productivity and net earning capacity of the property
31determined on the basis of its use for agricultural purposes
32capitalized at a rate of 7 percent and applied uniformly among
33counties and among classes of property.
34Under this bill, for assessment years beginning on or after
35January 1, 2024, a portion of the actual value of property
-1-1classified as agricultural located in a levee and drainage
2district that is located adjacent to both the Mississippi river
3and the Iowa river and consists of at least 35,000 acres shall
4be exempt from taxation. The exemption on such agricultural
5property shall be allowed if the property’s per-acre levee and
6drainage district taxes assessed exceed the applicable county’s
7per-acre five-year average levee and drainage district tax
8amount. The amount of the exemption shall be an amount equal
9to the number of net acres comprising the property multiplied
10by the amount by which the property’s per-acre levee and
11drainage district taxes exceed the county’s per-acre five-year
12average levee and drainage district tax amount divided by 7
13percent. However, in no case shall the amount of the exemption
14exceed 50 percent of the actual land value of the property.
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