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House File 169 - IntroducedA Bill ForAn Act 1providing a property tax exemption for land used to
2produce food within the limits of a city.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 427.1, Code 2017, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 25. Urban farm. Property certified as an
4urban farm by a city in compliance with this subsection.
5a. The city council must adopt an ordinance providing for
6terms and conditions of the exemption.
7b. The property must be owned by a nonprofit entity as
8defined in section 501(c)(3) of the Internal Revenue Code or
9must be leased by another person to such a nonprofit entity.
10The lease must be for at least five consecutive assessment
11years. The lease may be made on a cash rent basis or crop-share
12basis. A lease may be renewed or extended.
13c. The property must be located within the corporate limits
14of the city.
15d. The nonprofit entity must use the property as an urban
16farm to produce food suitable for human consumption. The food
17may be further processed or packaged prior to distribution as
18provided in this subsection.
19e. The food must be distributed to a food bank or emergency
20feeding organization recognized by the department of revenue.
21The food bank or emergency feeding organization must distribute
22the food within the corporate limits of the city.
23f. The city must certify that the property is an urban
24farm. The city must send a copy of the certification to
25the appropriate assessor not later than February 1 of the
26assessment year for which the exemption is requested. The
27city may subsequently withdraw certification of the property
28if the lease is terminated or the property is not used as an
29urban farm. The assessor shall be given written notice of the
30decertification.
31g. The exemption granted under this subsection shall
32apply until the property is decertified or the lease expires,
33whichever occurs earlier.
34h. An ordinance adopted under this subsection may provide
35that upon decertification all taxes that would have been levied
-1-1for the period of time the exemption was in effect under this
2subsection shall be immediately entered against the property on
3the tax list for the current year and shall constitute a lien
4against the property in the same manner as a lien for property
5taxes. The tax when collected shall be apportioned in the same
6manner provided for the apportionment of property taxes for the
7applicable tax year.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill provides a property tax exemption for property
12located within a city and certified as an urban farm by a
13city council pursuant to an ordinance. The property must be
14owned by or leased to a nonprofit entity which must use the
15property to produce food for distribution to a food bank or
16emergency feeding organization recognized by the department
17of revenue. A lease must be for at least five years and the
18exemption applies until the lease expires or until the property
19is decertified. A lease may be renewed or extended and, if
20the property is still eligible, the exemption continues. The
21ordinance may provide that upon decertification, the exemption
22is disallowed and the amount of the property taxes that had
23been exempted shall be entered against the property on the tax
24list for the current year.
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2produce food within the limits of a city.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 427.1, Code 2017, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 25. Urban farm. Property certified as an
4urban farm by a city in compliance with this subsection.
5a. The city council must adopt an ordinance providing for
6terms and conditions of the exemption.
7b. The property must be owned by a nonprofit entity as
8defined in section 501(c)(3) of the Internal Revenue Code or
9must be leased by another person to such a nonprofit entity.
10The lease must be for at least five consecutive assessment
11years. The lease may be made on a cash rent basis or crop-share
12basis. A lease may be renewed or extended.
13c. The property must be located within the corporate limits
14of the city.
15d. The nonprofit entity must use the property as an urban
16farm to produce food suitable for human consumption. The food
17may be further processed or packaged prior to distribution as
18provided in this subsection.
19e. The food must be distributed to a food bank or emergency
20feeding organization recognized by the department of revenue.
21The food bank or emergency feeding organization must distribute
22the food within the corporate limits of the city.
23f. The city must certify that the property is an urban
24farm. The city must send a copy of the certification to
25the appropriate assessor not later than February 1 of the
26assessment year for which the exemption is requested. The
27city may subsequently withdraw certification of the property
28if the lease is terminated or the property is not used as an
29urban farm. The assessor shall be given written notice of the
30decertification.
31g. The exemption granted under this subsection shall
32apply until the property is decertified or the lease expires,
33whichever occurs earlier.
34h. An ordinance adopted under this subsection may provide
35that upon decertification all taxes that would have been levied
-1-1for the period of time the exemption was in effect under this
2subsection shall be immediately entered against the property on
3the tax list for the current year and shall constitute a lien
4against the property in the same manner as a lien for property
5taxes. The tax when collected shall be apportioned in the same
6manner provided for the apportionment of property taxes for the
7applicable tax year.
8EXPLANATION
9The inclusion of this explanation does not constitute agreement with
10the explanation’s substance by the members of the general assembly.
11This bill provides a property tax exemption for property
12located within a city and certified as an urban farm by a
13city council pursuant to an ordinance. The property must be
14owned by or leased to a nonprofit entity which must use the
15property to produce food for distribution to a food bank or
16emergency feeding organization recognized by the department
17of revenue. A lease must be for at least five years and the
18exemption applies until the lease expires or until the property
19is decertified. A lease may be renewed or extended and, if
20the property is still eligible, the exemption continues. The
21ordinance may provide that upon decertification, the exemption
22is disallowed and the amount of the property taxes that had
23been exempted shall be entered against the property on the tax
24list for the current year.
-2-da/sc