Bill Text: IA HF485 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act establishing a property tax exemption for property used for certain gardening activities within a city and including applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-03-04 - Introduced, referred to Ways & Means. H.J. 462. [HF485 Detail]
Download: Iowa-2015-HF485-Introduced.html
House File 485 - Introduced HOUSE FILE BY KELLEY A BILL FOR 1 An Act establishing a property tax exemption for property used 2 for certain gardening activities within a city and including 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2512YH (3) 86 md/sc PAG LIN 1 1 Section 1. Section 427.1, subsection 2, Code 2015, is 1 2 amended to read as follows: 1 3 2. Municipal and military property. The property of a 1 4 county, township, city, school corporation, levee district, 1 5 drainage district, district organized under chapter 357E, or 1 6 the Iowa national guard, when devoted to public use and not 1 7 held for pecuniary profit, except property of a municipally 1 8 owned electric utility held under joint ownership and property 1 9 of an electric power facility financed under chapter 28F or 1 10 476A that shall be subject to taxation under chapter 437A 1 11 and facilities of a municipal utility that are used for the 1 12 provision of local exchange services pursuant to chapter 476, 1 13 but only to the extent such facilities are used to provide such 1 14 services, which shall be subject to taxation under chapter 433, 1 15 except that section 433.11 shall not apply. The exemption for 1 16 property owned by a city or county also applies to property 1 17 which is operated by a city or county as a library, art 1 18 gallery or museum, conservatory, botanical garden or display, 1 19 observatory or science museum, or as a location for holding 1 20 athletic contests, sports or entertainment events, expositions, 1 21 meetings or conventions, or leased from the city or county for 1 22 any such purposes, or leased from the city or county by the 1 23 Iowa national guard or by a federal agency for the benefit of 1 24 the Iowa national guard when devoted for public use and not 1 25 for pecuniary profit. Food and beverages may be served at the 1 26 events or locations without affecting the exemptions, provided 1 27 the city has approved the serving of food and beverages on the 1 28 property if the property is owned by the city or the county 1 29 has approved the serving of food and beverages on the property 1 30 if the property is owned by the county. The exemption for 1 31 property owned by a city or county also applies to property 1 32 which is located at an airport and leased to a fixed base 1 33 operator providing aeronautical services to the public. The 1 34 exemption for property owned by a city also applies to land 1 35 operated by the city as a fruit or vegetable garden or leased 2 1 from the city by a nonprofit corporation for use as a fruit or 2 2 vegetable garden, and the sale of fruits or vegetables grown 2 3 on the land by the city or the lessee shall not affect the 2 4 exemption. 2 5 Sec. 2. Section 427.1, Code 2015, is amended by adding the 2 6 following new subsection: 2 7 NEW SUBSECTION. 40. Nonprofit fruit and vegetable 2 8 gardens. Land owned by a nonprofit corporation and located 2 9 within the corporate boundaries of a city, not exceeding five 2 10 acres, if devoted to public use by the nonprofit corporation as 2 11 a fruit or vegetable garden. The sale of fruits or vegetables 2 12 grown on the land shall not affect the exemption. To be 2 13 allowed the exemption under this subsection, the nonprofit 2 14 corporation that owns the land shall have as one of its 2 15 objectives or purposes the cultivation and sale of fresh fruits 2 16 and vegetables to residents of the community and shall not be a 2 17 political organization as defined in section 13C.1. 2 18 Sec. 3. IMPLEMENTATION. Section 25B.7 does not apply to the 2 19 property tax exemption enacted in this Act. 2 20 Sec. 4. APPLICABILITY. This Act applies to assessment years 2 21 beginning on or after January 1, 2016. 2 22 EXPLANATION 2 23 The inclusion of this explanation does not constitute agreement with 2 24 the explanation's substance by the members of the general assembly. 2 25 This bill provides a property tax exemption for certain 2 26 property located in a city used as a fruit or vegetable garden. 2 27 The bill modifies the current municipal property tax 2 28 exemption under Code section 427.1(2) to include land operated 2 29 by the city as a fruit or vegetable garden or leased from 2 30 the city by a nonprofit corporation for use as a fruit or 2 31 vegetable garden. The bill provides that the sale of fruits 2 32 or vegetables grown on such land by the city or the nonprofit 2 33 corporation lessee shall not affect the exemption. 2 34 The bill also establishes a property tax exemption for 2 35 land owned by a nonprofit corporation and located within the 3 1 corporate boundaries of a city, not exceeding five acres, 3 2 if the property is devoted to public use by the nonprofit 3 3 corporation as a fruit or vegetable garden. The bill provides 3 4 that the sale of fruits or vegetables grown on the land shall 3 5 not affect the exemption. To be allowed the exemption under 3 6 the bill, the nonprofit corporation that owns the land must 3 7 have as one of its objectives or purposes the cultivation 3 8 and sale of fresh fruits and vegetables to residents of the 3 9 community and shall not be a political organization as defined 3 10 in the bill. 3 11 Code section 25B.7 provides that for a property tax credit 3 12 or exemption enacted on or after January 1, 1997, if a state 3 13 appropriation made to fund the credit or exemption is not 3 14 sufficient to fully fund the credit or exemption, the political 3 15 subdivision shall be required to extend to the taxpayer only 3 16 that portion of the credit or exemption estimated by the 3 17 department of revenue to be funded by the state appropriation. 3 18 The bill provides that Code section 25B.7 does not apply to the 3 19 exemption in the bill. 3 20 The bill applies to assessment years beginning on or after 3 21 January 1, 2016. LSB 2512YH (3) 86 md/sc
