HomeMy WebLinkAbout~Master - Adopting a Property Tax Exemption for Qualified Industrial Real Estate ORDINANCE NO. 2923
AN ORDINANCE TO AMEND THE MUNICIPAL CODE OF
THE CITY OF AMES, IOWA BY ADDING SECTIONS 24.8
THROUGH 24.13 FOR THE PURPOSE OF ADOPTING A
PROPERTY TAX EXEMPTION FOR VALUE ADDED TO
QUALIFIED INDUSTRIAL REAL ESTATE, AND PROVID-
ING AN EFFECTIVE DATE
BE IT ORDAINED, by the City Council for the City of Ames, Iowa:
Section One. The Municipal Code of the City of Ames, Iowa is hereby
amended by adding thereto new sections 24.8 through 24.13 as follows:
"Sec. 24.8. INDUSTRIAL PROPERTY TAX EXEMPTION.
1. Pursuant to Chapter 427B Code of Iowa, there is hereby
provided a partial exemption from property taxation of
the actual value added to qualifying industrial real estate
by the new construction of industrial real estate and the
acquisition of or improvement to machinery and equip-
ment assessed as real estate pursuant to section 427A.1,
subsection 1, paragraph 'e', Code of Iowa.
2. New construction means new buildings and structures
and includes new buildings and structures which are
constructed as additions to existing buildings. New
construction does not include reconstruction of an exist-
ing building or structure which does not constitute
complete replacement of an existing building or structure
or refitting of an existing building or structure, unless
the reconstruction of an existing building or structure is
required due to economic obsolesence and the reconstruc-
tion is necessary to implement recognized industry stan-
dards for the manufacture and processing of specific
products and the reconstruction is required for the
owner of the building or structure to continue to competi-
tively manufacture or process those products which
determination shall receive prior approval from the city
council of the city upon the recommendation of the Iowa
Development Commission.
3. The exemption shall also apply to new machinery and
equipment assessed as real estate pursuant to section
427A. 1, subsection 1, paragraph le', unless the machine-
ry or equipment is part of the normal replacement or
operating process to maintain or expand the existing
operational status.
4. The term "qualifying", as used in this section, means
that which is classified and assessed as industrial real
estate entitled to the exemption by the laws of Iowa and
the valid administrative rules of the Iowa Department of
Revenue.
[State Law Ref. Iowa Code Sec. 427B. 1, IAC 730-80.6]
Sec. 24.9. LENGTH OF TIME EXEMPTION IS AVAILABLE.
The exemption provided in section 24.8 shall be available for a period
of five years from the 1st day of June, 1985, unless sooner repealed.
[State Law Ref. 42713. 1]
Sec. 24.10. EXEMPTION SCHEDULE.
The actual value added to industrial real estate for the reasons speci-
fied in section one is eligible to receive a partial exemption from taxation for
a period of five (5) years. "Actual value added" as used herein means the
actual value added as of the first year for which the exemption is received,
except that actual value added by improvements to machinery and equipment
means the actual value as determined by the assessor as of January first of
each year for which the exemption is received. The amount of actual value
added which is eligible to be exempt from taxation shall be as follows:
(1) For the first year, seventy-five percent.
(2) For the second year, sixty percent.
(3) For the third year, forty-five percent.
(4) For the fourth year, thirty percent.
(5) For the fifth year, fifteen percent.
However, the granting of an exemption under this section for new construc-
tion constituting complete replacement of an existing building or structure
shall not result in the assessed value of the industrial real estate being
reduced below the assessed value of the industrial real estate before the
start of the new construction added.
[State Law Ref. 427B.31
Sec. 24.11. APPLICATION FOR EXEMPTION.
For each eligible property for which an exemption is desired the owner
shall cause to be filed an application for exemption with the city assessor,
on the forms prescribed by the director of revenue for the State of Iowa,
between January 1 and February 1 of the year for which the value added is
first assessed for tax purposes. If an application is not filed by February 1
of the year the value added is first assessed, the taxpayer cannot receive in
subsequent years the partial exemption for that value added.
[State Law Ref. Sec. 427b.4, IAC 730-80.6(6)(a)]
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Sec. 24.12. REPEAL OF EXEMPTION; EFFECT.
If the exemption established by section one is repealed all existing
exemptions shall continue until their expiration.
[State Law Ref. Sec. 427B.5]
Sec. 24. 13. MULTIPLE EXEMPTIONS PROHIBITED.
The property tax exemption under this ordinance shall not be granted
if the property for which the exemption is claimed has received any other
property tax exemption authorized by law.
[State Law Ref. Sec. 427B.6]
Section Two. This ordinance shall be in full force and effect from and
after the 7th day of May 1985.
��ancy Gibb s, City Clerk qF. aul oodland, Mayor
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