Bill Text: IA HSB78 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act establishing a partial property tax exemption for certain agricultural land planted with cover crops, providing penalties, and including applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-01-29 - Subcommittee Meeting: 01/31/2019 9:00AM House Lounge. [HSB78 Detail]
Download: Iowa-2019-HSB78-Introduced.html
House
Study
Bill
78
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
AGRICULTURE
BILL
BY
CHAIRPERSON
PAUSTIAN)
A
BILL
FOR
An
Act
establishing
a
partial
property
tax
exemption
for
1
certain
agricultural
land
planted
with
cover
crops,
2
providing
penalties,
and
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
NEW
SECTION
.
427D.1
Cover
crop
property
tax
1
exemption
——
definitions.
2
1.
The
owner
of
agricultural
land,
as
defined
in
section
3
9H.1,
that
is
planted
with
cover
crops
shall
be
entitled
to
a
4
property
tax
exemption
as
provided
in
this
chapter.
5
2.
a.
“Cover
crop”
means
the
same
as
a
cover
crop
under
6
section
161A.73
that
would
be
eligible
for
financial
incentives
7
as
a
soil
erosion
control
management
practice.
8
b.
“Department”
means
the
department
of
agriculture
and
land
9
stewardship.
10
Sec.
2.
NEW
SECTION
.
427D.2
Eligibility
and
application.
11
1.
Fifty
percent
of
the
assessed
value
of
that
portion
12
of
the
owner’s
agricultural
land
planted
with
cover
crops
13
during
the
growing
season
of
the
assessment
year
for
which
the
14
exemption
is
claimed
shall
be
exempt
from
taxation.
15
2.
If
agricultural
land
for
which
an
application
is
filed
16
meets
the
requirements
of
this
chapter,
it
shall
receive
the
17
exemption
under
this
chapter
if
the
application
is
made
or
18
on
file
with
the
department
on
or
before
February
1
of
the
19
exemption
year.
The
exemption
shall
be
only
for
the
assessment
20
year
for
which
it
is
granted.
Property
may
be
granted
21
subsequent
exemptions.
22
3.
To
apply
for
the
exemption,
the
applicant
shall
deliver
23
to
the
department
a
verified
statement
and
designation
of
24
the
tracts
of
agricultural
land
for
which
the
exemption
is
25
claimed
on
forms
prescribed
by
the
department.
If
approved,
26
the
department
shall
return
the
statement
and
designation
on
or
27
before
November
15
of
each
year
to
the
appropriate
assessor.
28
The
department
may
inspect
the
property
for
compliance
with
29
the
requirements
of
this
chapter.
If
the
land
fails
to
meet
30
the
established
standards
for
the
exemption,
the
owner
and
the
31
appropriate
assessor
shall
be
given
written
notice
of
such
32
determination.
33
Sec.
3.
NEW
SECTION
.
427D.3
False
claim
——
penalty.
34
If
a
person
makes
a
false
claim
or
affidavit
with
fraudulent
35
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_____
intent
to
obtain
the
exemption
under
this
chapter,
the
claim
1
shall
be
disallowed
in
full.
If
the
exemption
has
been
2
provided,
the
amount
of
the
exempted
taxes
plus
interest,
3
at
the
rate
in
effect
under
section
421.7,
from
the
time
of
4
payment
shall
be
collected
by
the
county
treasurer
in
the
same
5
manner
as
other
property
taxes,
penalty,
and
interest
are
6
collected.
If
a
claim
is
disallowed
under
this
section,
the
7
person
shall
not
be
eligible
to
claim
an
exemption
under
this
8
chapter
for
the
succeeding
five
assessment
years.
9
Sec.
4.
NEW
SECTION
.
427D.4
Rules.
10
The
department,
in
consultation
with
the
department
of
11
revenue,
shall
adopt
rules
pursuant
to
chapter
17A
for
the
12
interpretation
and
proper
administration
of
the
exemption
13
provided
in
this
chapter.
14
Sec.
5.
IMPLEMENTATION.
Section
25B.7
shall
not
apply
to
15
this
Act.
16
Sec.
6.
APPLICABILITY.
This
Act
applies
to
assessment
years
17
beginning
on
or
after
January
1,
2020.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
establishes
a
property
tax
exemption
for
22
agricultural
land
that
is
planted
with
cover
crops,
as
defined
23
in
the
bill.
Fifty
percent
of
the
assessed
value
of
the
24
eligible
land
planted
with
cover
crops
during
the
growing
25
season
of
the
assessment
year
shall
be
exempt
from
taxation.
26
To
apply
for
the
exemption,
the
applicant
is
required
to
27
deliver
to
the
department
of
agriculture
and
land
stewardship
28
(the
department)
a
verified
statement
and
designation
of
the
29
tracts
of
agricultural
land
for
which
the
exemption
is
claimed
30
on
forms
prescribed
by
the
department.
The
bill
authorizes
31
the
department
to
inspect
the
land
for
compliance
with
the
32
requirements
for
the
exemption.
33
Under
the
bill,
if
a
person
makes
a
false
claim
or
affidavit
34
with
fraudulent
intent
to
obtain
the
exemption,
the
claim
35
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shall
be
disallowed
in
full
and
if
the
exemption
has
been
1
provided,
the
amount
of
the
exempted
taxes
plus
interest
shall
2
be
collected
by
the
county
treasurer.
In
addition,
the
person
3
is
not
be
eligible
to
claim
the
exemption
for
the
succeeding
4
five
assessment
years.
5
The
bill
requires
the
department
to,
in
consultation
with
6
the
department
of
revenue,
adopt
rules
for
the
interpretation
7
and
proper
administration
of
the
exemption
provided
in
the
8
bill.
9
The
bill
makes
inapplicable
Code
section
25B.7.
Code
10
section
25B.7
provides
that
for
a
property
tax
credit
or
11
exemption
enacted
on
or
after
January
1,
1997,
if
a
state
12
appropriation
made
to
fund
the
credit
or
exemption
is
not
13
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
14
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
15
that
portion
of
the
credit
or
exemption
estimated
by
the
16
department
of
revenue
to
be
funded
by
the
state
appropriation.
17
The
bill
applies
to
assessment
years
beginning
on
or
after
18
January
1,
2020.
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