Bill Text: IA HF156 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act providing a property tax exemption for land used to produce food within the limits of a city.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2023-03-29 - Subcommittee recommends passage. Vote Total: 3-0. [HF156 Detail]
Download: Iowa-2023-HF156-Introduced.html
House
File
156
-
Introduced
HOUSE
FILE
156
BY
ISENHART
A
BILL
FOR
An
Act
providing
a
property
tax
exemption
for
land
used
to
1
produce
food
within
the
limits
of
a
city.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
427.1,
Code
2023,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
25.
Urban
farm
ordinance.
Property
3
certified
as
an
urban
farm
by
a
city
in
compliance
with
this
4
subsection.
5
a.
The
city
council
must
adopt
an
urban
farm
ordinance
6
providing
for
terms
and
conditions
of
the
exemption.
7
b.
The
property
must
be
owned
by
a
person
for
an
exemption
8
period
equal
to
at
least
ten
consecutive
assessment
years.
9
The
owner
may
lease
the
property
to
a
person
or
that
person’s
10
successor
in
interest.
A
lease
may
be
renewed
or
extended.
11
Title
to
or
a
leasehold
interest
in
the
property
may
be
12
transferred
to
a
successor
in
interest.
13
c.
The
property
must
be
located
within
the
corporate
limits
14
of
the
city.
15
d.
The
property
must
be
in
continuous
use
as
an
urban
farm
16
to
produce
food
suitable
for
human
consumption.
Property
is
17
in
continuous
use
during
any
period
of
a
production
cycle,
18
including
the
period
in
which
the
property
is
fallow
prior
to
19
the
spring
planting.
The
food
may
be
further
processed
or
20
packaged
prior
to
distribution
as
provided
in
this
subsection.
21
e.
The
food
must
be
used
by,
sold
to,
or
otherwise
22
distributed
to
a
food
bank,
emergency
feeding
organization,
23
or
other
nonprofit
organization
recognized
by
the
department
24
of
revenue.
The
food
bank,
emergency
feeding
organization,
25
or
other
nonprofit
organization
must
prepare
and
serve
or
26
distribute
the
food
within
the
corporate
limits
of
the
city.
27
f.
Prior
to
adopting
a
proposed
ordinance
providing
for
28
the
terms
and
conditions
of
the
tax
exemption,
the
city
shall
29
mail
a
copy
of
the
proposed
ordinance
to
each
affected
taxing
30
entity,
including
a
county
or
school
district
which
levied
31
or
certified
for
levy
a
property
tax
on
any
portion
of
the
32
property
subject
to
the
proposed
ordinance
in
the
fiscal
year
33
beginning
prior
to
the
calendar
year
in
which
a
proposed
34
ordinance
is
to
be
adopted.
Unless
an
affected
taxing
entity
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objects
to
the
ordinance
by
resolution
adopted
within
fourteen
1
days
after
delivery
of
the
notice,
the
affected
taxing
entity
2
shall
be
deemed
to
have
approved
any
approval
of
the
ordinance
3
by
the
city
during
that
calendar
year.
If
an
affected
taxing
4
entity
objects
to
the
proposed
ordinance,
future
consideration
5
of
the
proposed
ordinance
shall
be
indefinitely
deferred.
6
g.
The
city
must
certify
that
the
property
is
an
urban
7
farm.
The
city
must
send
a
copy
of
the
certification
to
8
the
appropriate
assessor
not
later
than
February
1
of
the
9
assessment
year
for
which
the
exemption
is
requested.
10
h.
The
exemption
shall
apply
until
the
person’s
ownership
11
interest
in
the
property
terminates
or
the
city
decertifies
12
the
property
as
provided
in
this
subsection,
whichever
13
occurs
earlier.
The
person
shall
notify
the
city
of
the
14
termination.
The
city
shall
deliver
a
written
notification
of
15
the
termination
or
decertification
to
the
assessor.
16
i.
The
city
shall
decertify
the
property
if
any
of
the
17
following
apply:
18
(1)
The
property
has
not
been
continuously
used
as
an
urban
19
farm.
20
(2)
The
property
has
been
continuously
used
as
an
urban
21
farm,
and
a
person’s
ownership
interest
in
the
property
has
22
terminated.
23
(3)
The
person
who
holds
an
ownership
or
a
leasehold
24
interest
in
the
property
fails
to
comply
with
the
requirements
25
of
this
subsection,
including
the
terms
of
the
ordinance.
26
j.
(1)
If
a
city
decertifies
property
as
provided
in
27
this
subsection,
all
taxes
that
would
have
been
levied
for
28
the
period
of
time
the
exemption
was
in
effect
under
this
29
subsection
shall
be
immediately
entered
against
the
property
on
30
the
tax
list
for
the
current
year
and
shall
constitute
a
lien
31
against
the
property
in
the
same
manner
as
a
lien
for
property
32
taxes.
The
tax
when
collected
shall
be
apportioned
in
the
same
33
manner
provided
for
the
apportionment
of
property
taxes
for
the
34
applicable
tax
year.
The
ordinance
may
allow
the
city
to
use
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revenue
collected
from
the
tax
to
assist
a
person
whose
lease
1
was
terminated
due
to
a
decertification
in
leasing
new
property
2
that
has
been
certified
by
the
city.
3
(2)
Subparagraph
(1)
does
not
apply
if
the
property
was
4
decertified
because
of
any
of
the
following:
5
(a)
A
lease
was
terminated
by
the
owner
for
breach
by
the
6
lessee.
7
(b)
The
lessee
failed
to
comply
with
the
requirements
of
8
this
subsection,
including
the
terms
of
the
ordinance.
9
Sec.
2.
IMPLEMENTATION
OF
ACT.
Section
25B.7
shall
not
10
apply
to
the
property
tax
exemption
enacted
in
this
Act.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
provides
a
property
tax
exemption
for
property
15
located
within
a
city
and
certified
as
an
urban
farm
by
a
city
16
council
pursuant
to
an
urban
farm
ordinance.
The
ordinance
17
cannot
be
adopted
if
another
affected
taxing
entity
objects.
18
The
property
must
be
owned
by
a
person
who
uses
the
property
to
19
produce
food
for
use
by,
sale
to,
or
otherwise
for
distribution
20
to
a
nonprofit
organization
such
as
a
food
bank
or
emergency
21
feeding
organization.
The
person
must
own
the
property
22
during
the
exemption
period
equal
to
at
least
10
consecutive
23
assessment
years.
The
property
may
be
leased
to
a
person.
The
24
exemption
applies
to
a
person
who
has
been
transferred
a
title
25
or
leasehold
interest
in
the
property.
26
The
city
must
decertify
the
property
if
the
property
has
not
27
been
continuously
used
as
an
urban
farm
or
a
person
who
holds
28
an
ownership
or
a
leasehold
interest
in
the
property
fails
to
29
comply
with
the
requirements
of
the
bill.
30
A
so-called
“clawback”
provision
applies.
The
ordinance
31
may
provide
that
if
property
is
decertified,
all
taxes
that
32
would
have
been
levied
during
the
period
the
exemption
was
33
in
effect
are
due.
A
city
may
use
revenue
collected
from
34
the
tax
to
assist
a
person
whose
lease
was
terminated
due
to
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a
decertification
in
leasing
new
property
certified
by
the
1
city.
The
clawback
provision
does
not
apply
if
the
property
2
was
decertified
because
the
lessee
was
in
breach
of
contract
or
3
the
lessee
failed
to
comply
with
the
requirements
of
the
bill,
4
including
the
terms
of
the
ordinance.
5
The
bill
makes
inapplicable
Code
section
25B.7.
Code
6
section
25B.7
provides
that
for
a
property
tax
credit
or
7
exemption
enacted
on
or
after
January
1,
1997,
if
a
state
8
appropriation
made
to
fund
the
credit
or
exemption
is
not
9
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
10
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
11
that
portion
of
the
credit
or
exemption
estimated
by
the
12
department
of
revenue
to
be
funded
by
the
state
appropriation.
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