Bill Text: IA HF636 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act relating to urban revitalization areas by authorizing a property tax exemption for certain vacant commercial property, and including effective date provisions. (Formerly HF 413) (See Cmte. Bill HF 690)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF636 Detail]
Download: Iowa-2011-HF636-Introduced.html
House
File
636
-
Introduced
HOUSE
FILE
636
BY
COMMITTEE
ON
ECONOMIC
GROWTH/REBUILD
IOWA
(SUCCESSOR
TO
HF
413)
A
BILL
FOR
An
Act
relating
to
urban
revitalization
areas
by
authorizing
1
a
property
tax
exemption
for
certain
vacant
commercial
2
property,
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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636
Section
1.
Section
404.3,
subsections
5
and
6,
Code
2011,
1
are
amended
to
read
as
follows:
2
5.
A
city
or
county
may
adopt
a
different
tax
exemption
3
schedule
than
those
allowed
in
subsection
1,
2
,
3,
or
4.
The
4
different
schedule
adopted
shall
not
allow
a
greater
exemption,
5
but
may
allow
a
smaller
exemption,
in
a
particular
year,
6
than
allowed
in
the
schedule
specified
in
the
corresponding
7
subsection
of
this
section
.
A
different
schedule
adopted
by
a
8
city
or
county
shall
apply
to
every
revitalization
area
within
9
the
city
or
county,
unless
the
qualified
property
is
eligible
10
for
an
exemption
pursuant
to
section
404.3A
,
or
404.3B
,
or
11
404.3C,
and
except
in
areas
of
the
city
or
county
which
have
12
been
designated
as
both
urban
renewal
and
urban
revitalization
13
areas.
In
an
area
designated
for
both
urban
renewal
and
urban
14
revitalization,
a
city
or
county
may
adopt
a
different
schedule
15
than
has
been
adopted
for
revitalization
areas
which
have
not
16
been
designated
as
urban
renewal
areas.
17
6.
The
owners
of
qualified
real
estate
eligible
for
the
18
exemption
provided
in
this
section
or
section
404.3A
,
or
19
404.3B
,
or
404.3C
shall
elect
to
take
the
applicable
exemption
20
or
shall
elect
to
take
the
applicable
exemption
provided
in
21
the
different
schedule
authorized
by
subsection
5
and
adopted
22
in
the
city
or
county
plan
if
a
different
schedule
has
been
23
adopted.
Once
the
election
has
been
made
and
the
exemption
24
granted,
the
owner
is
not
permitted
to
change
the
method
of
25
exemption.
26
Sec.
2.
NEW
SECTION
.
404.3C
Vacant
commercial
property
27
exemption.
28
1.
Notwithstanding
the
schedules
provided
for
in
sections
29
404.3
and
404.3B,
a
city
or
county
may
provide
that
all
30
qualified
real
estate
assessed
as
commercial
property
that
is
31
vacant
on
the
date
the
exemption
is
adopted,
has
been
vacant
32
for
at
least
the
six
months
prior
to
the
date
the
exemption
33
is
adopted,
and
meets
one
or
more
of
the
following
conditions
34
is
eligible
to
receive
an
exemption
from
taxation
based
on
a
35
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636
schedule
established
by
the
applicable
city
or
county
under
1
subsection
2
or
3:
2
a.
The
real
estate
regularly
attracts
unauthorized
3
residential
use,
unlicensed
transient
business,
unauthorized
4
disposal
of
trash,
or
unauthorized
parking.
5
b.
The
assessed
value
of
the
real
estate
has
declined
during
6
the
period
of
time
when
the
real
estate
has
been
vacant.
7
c.
The
real
estate
is
determined
to
contain
one
or
more
8
nuisances
under
chapter
657
or
to
be
a
public
nuisance
as
9
defined
in
section
657A.1,
subsection
7.
10
2.
a.
All
qualified
real
estate
described
in
subsection
1
11
is
eligible
to
receive
an
exemption
from
taxation
on
the
actual
12
value
added
by
the
improvements.
The
exemption
is
for
a
period
13
of
fifteen
years.
The
amount
of
the
partial
exemption
shall
14
be
established
by
the
applicable
city
or
county
and
is
equal
15
to
a
percent
of
the
actual
value
added
by
the
improvements,
16
determined
as
follows:
17
(1)
For
the
first
year,
not
more
than
eighty
percent.
18
(2)
For
the
second
year,
not
more
than
seventy-five
percent.
19
(3)
For
the
third
year,
not
more
than
seventy
percent.
20
(4)
For
the
fourth
year,
not
more
than
sixty-five
percent.
21
(5)
For
the
fifth
year,
not
more
than
sixty
percent.
22
(6)
For
the
sixth
year,
not
more
than
fifty-five
percent.
23
(7)
For
the
seventh
year,
not
more
than
fifty
percent.
24
(8)
For
the
eighth
year,
not
more
than
forty-five
percent.
25
(9)
For
the
ninth
year,
not
more
than
forty
percent.
26
(10)
For
the
tenth
year,
not
more
than
thirty-five
percent.
27
(11)
For
the
eleventh
year,
not
more
than
thirty
percent.
28
(12)
For
the
twelfth
year,
not
more
than
twenty-five
29
percent.
30
(13)
For
the
thirteenth
year,
not
more
than
twenty
percent.
31
(14)
For
the
fourteenth
year,
not
more
than
twenty
percent.
32
(15)
For
the
fifteenth
year,
not
more
than
twenty
percent.
33
b.
All
qualified
real
estate
described
in
subsection
1
is,
34
in
lieu
of
the
exemption
schedule
established
under
paragraph
35
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636
“a”
,
eligible
to
receive
an
exemption
from
taxation
established
1
by
the
applicable
city
or
county
not
to
exceed
one
hundred
2
percent
on
the
actual
value
added
by
the
improvements.
The
3
exemption
is
for
a
period
of
five
years.
4
3.
All
qualified
real
estate
described
in
subsection
1
is,
5
in
lieu
of
the
exemption
schedules
under
subsection
2,
eligible
6
to
receive
an
exemption
from
taxation
on
the
actual
value
added
7
by
the
improvements
if
such
improvements
meet
or
exceed
the
8
gold
rating
standard,
or
other
comparable
nationally
recognized
9
environmental
building
rating
standard
identified
by
ordinance
10
of
the
city
or
county,
and
if
such
improvements
are
designed,
11
constructed,
and
certified
to
exceed
standard
90.1-2007,
12
published
by
the
American
society
of
heating,
refrigerating,
13
and
air
conditioning
engineers,
by
thirty
percent.
For
the
14
purposes
of
this
subsection,
“gold
rating
standard”
means
the
15
United
States
green
building
council
leadership
in
energy
and
16
environmental
design
green
building
rating
standard,
referred
17
to
as
the
gold
standard.
Compliance
with
the
requirements
18
of
this
subsection
relating
to
standard
90.1-2007,
published
19
by
the
American
society
of
heating,
refrigerating,
and
air
20
conditioning
engineers,
shall
be
certified
by
a
qualified,
21
licensed
engineer.
The
exemption
is
for
a
period
of
ten
22
years.
The
amount
of
the
exemption
shall
be
established
by
23
the
applicable
city
or
county
and
is
equal
to
a
percent
of
the
24
actual
value
added
by
the
improvements,
determined
as
follows:
25
a.
For
the
first
year,
not
more
than
one
hundred
percent.
26
b.
For
the
second
year,
not
more
than
one
hundred
percent.
27
c.
For
the
third
year,
not
more
than
one
hundred
percent.
28
d.
For
the
fourth
year,
not
more
than
one
hundred
percent.
29
e.
For
the
fifth
year,
not
more
than
one
hundred
percent.
30
f.
For
the
sixth
year,
not
more
than
eighty
percent.
31
g.
For
the
seventh
year,
not
more
than
sixty
percent.
32
h.
For
the
eighth
year,
not
more
than
forty
percent.
33
i.
For
the
ninth
year,
not
more
than
twenty
percent.
34
j.
For
the
tenth
year,
not
more
than
ten
percent.
35
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636
Sec.
3.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
1
immediate
importance,
takes
effect
upon
enactment.
2
EXPLANATION
3
This
bill
relates
to
revitalization
areas
by
authorizing
a
4
property
tax
exemption
for
certain
vacant
commercial
property.
5
The
bill
creates
new
Code
section
404.3C
that
establishes
6
a
property
tax
exemption
for
qualified
real
estate
of
a
7
revitalization
area
under
Code
chapter
404
that
is
assessed
8
as
commercial
property,
remained
vacant
for
a
period
of
six
9
consecutive
months,
and
which
meets
one
or
more
specified
10
conditions.
Those
conditions
include
that
the
real
estate
11
regularly
attracts
unauthorized
residential
use,
unlicensed
12
transient
business,
unauthorized
disposal
of
trash,
or
13
unauthorized
parking;
that
the
assessed
value
of
the
real
14
estate
has
declined
during
the
period
of
time
when
the
real
15
estate
has
been
vacant;
and
that
the
real
estate
is
determined
16
to
contain
one
or
more
specified
nuisances.
17
The
bill
establishes
a
15-year
exemption
schedule
that
18
provides
exemptions
for
each
year
ranging
from
not
more
than
80
19
percent
to
not
more
than
20
percent.
The
bill
also
establishes
20
a
five-year
exemption
schedule,
in
lieu
of
the
15-year
21
schedule,
that
provides
a
100
percent
exemption
for
each
of
22
the
five
years.
For
qualified
real
estate
that
includes
23
improvements
meeting
the
LEED
gold
rating
standard,
as
defined
24
in
the
bill,
the
bill
provides
an
alternative
10-year
exemption
25
schedule
that
begins
with
a
100
percent
exemption
for
the
first
26
five
years
and
then
is
reduced
each
year
during
the
last
five
27
years
of
the
exemption.
28
The
bill
takes
effect
upon
enactment.
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