HomeMy WebLinkAboutA006 - Email dated April 29, 2020 from Legal Diane Voss
From: Mark Lambert
Sent: Wednesday, April 29, 2020 4:16 PM
To: Diane Voss
Subject: RE: Notice of Hearing RE: Extension of Industrial Tax Exemption Ordinance
Diane,
Looks good to me.
,w Ames
Mark O. Lambert
Cite Attorne 1,
515.239.5146 main I 515.239.5142 fiu
mlambert@city.ames.ia.us I City Hall, 515 Clark Avenue I Ames, IA 50010
www.CitvofAmes.org I —Caring People —Quality Programs — Exceptional Service "
From: Diane Voss<diane.voss@cityofames.org>
Sent: Wednesday, April 29, 2020 4:05 PM
To: Mark Lambert<Mark.Lambert@cityofames.org>
Subject: Notice of Hearing RE: Extension of Industrial Tax Exemption Ordinance
Mark:
I found under Iowa Code Section 4276.1 that a Notice of Hearing is necessary. The requirements are the same as most
(under Section 362.3) in that it is a 4& 20-day requirement.
I have drafted the attached Notice for your review. Please advise. If possible, I would like to send it to the Trib yet
today.
Thank you!
Diane R.Voss, City Clerk/Records Manager
515 Clark Avenue
Ames, Iowa 50010
515-239-5105
dvoss@city.ames.ia.us
i
1 SPECIAL TAX PROVISIONS, §427B.1
CHAPTER 427B
SPECIAL TAX PROVISIONS
Referred to in§331.303,331.402,433.4A,437A.16A,441.47
SUBCHAPTER I 427B.19A Fund created.
INDUSTRIAL PROPERTY AND CATTLE FACILITIES ACTUAL 427B.19B Guarantee of state replacement
VALUE ADDED EXEMPTION funds. Repealed by 2003 Acts,
ch 178, §11.
427B.1 Actual value added exemption 427B.19C Adjustment of certain
from tax—public hearing. assessments required.
427B.2 Zoning under chapter 335. 427B.19D Appeal for state assistance.
42713.3 Period of partial exemption.
42713.4 Application for exemption by
property owner. SUBCHAPTER IV
42713.5 Exemption may be repealed. UNDERGROUND STORAGE TANKS REMEDIAL ACTION
42713.6 Dual exemptions prohibited. CREDIT
427B.7 Actual value added exemption
from tax—cattle facilities. 427B.20 Local option remedial action
427B.8 and 427B.9 Reserved. property tax credit—public
hearing.
SUBCHAPTER 11 427B•21 Application for credit by
underground storage tank
RESERVED owner or operator—approval
427B.10 through 427B.16 Reserved. by county board of supervisors
or city council.
42713.22 Credit may be repealed.
SUBCHAPTER 111 42713.23 through 427B.25 Reserved.
SPECIAL VALUATION FOR MACHINERY,EQUIPMENT AND
COMPUTERS—STATE REPLACEMENT FUNDS
SUBCHAPTER V
427B.17 Property subject to special
SPECIAL VALUATION FOR WIND ENERGY CONVERSION
valuation.
PROPERTY
42713.18 Replacement.
427B.19 Assessor and county auditor 427B.26 Special valuation of wind energy
duties. conversion property.
SUBCHAPTER
INDUSTRIAL PROPERTY AND CATTLE FACILITIES ACTUAL VALUE ADDED
EXEMPTION
427B.1 Actual value added exemption from tax—public hearing.
1. For purposes of this section:
a. "Distribution center" means a building or structure used primarily for the storage of
goods which are intended for subsequent shipment to retail outlets. "Distribution center"
does not mean a building or structure used primarily to store raw agricultural products,used
primarily by a manufacturer to store goods to be used in the manufacturing process, used
primarily for the storage of petroleum products, or used for the retail sale of goods.
b. "New construction" means new buildings and structures and includes new buildings
and structures which are constructed as additions to existing buildings and structures. "New
construction"does not include reconstruction of an existing 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 obsolescence and the reconstruction is necessary to implement
recognized industry standards for the manufacturing and processing of specific products
and the reconstruction is required for the owner of the building or structure to continue to
competitively manufacture or process those products which determination shall receive prior
approval from the city council of the city or the board of supervisors of the county.
c. "Research-service facilities"means a building or group of buildings devoted primarily
to research and development activities,including but not limited to the design and production
Thu Dec 05 12:25:46 2019 Iowa Code 2020, Chapter 427B (29, 1)
§427B.1, SPECIAL TAX PROVISIONS 2
or manufacture of prototype products for experimental use, and corporate-research services
which do not have a primary purpose of providing on-site services to the public.
d. "Warehouse"means a building or structure used as a public warehouse for the storage
of goods pursuant to chapter 554,article 7,except that it does not mean a building or structure
used primarily to store raw agricultural products or from which goods are sold at retail.
2. A city council, or a county board of supervisors as authorized by section 427B.2, may
provide by ordinance for a partial exemption from property taxation of the actual value added
to industrial real estate by the new construction of industrial real estate, research-service
facilities, warehouses, distribution centers and the acquisition of or improvement to
machinery and equipment assessed as real estate pursuant to section 427A.1, subsection 1,
paragraph "e". The exemption shall also apply to new machinery and equipment assessed
as real estate pursuant to section 427A.1, subsection 1, paragraph "e", unless the machinery
or equipment is part of the normal replacement or operating process to maintain or expand
the existing operational status.
3. The ordinance may be enacted not less than thirty days after a public hearing is held
in accordance with section 335.6 in the case of a county,or section 362.3 in the case of a city.
The ordinance shall designate the length of time the partial exemption shall be available and
may provide for an exemption schedule in lieu of that provided in section 427B.3. However,
an alternative exemption schedule adopted shall not provide for a larger tax exemption in a
particular year than is provided for that year in the schedule contained in section 427B.3.
[C81, §427B.1; 82 Acts, ch 1104, §20]
84 Acts, ch 1232, §2; 85 Acts, ch 232, §1; 2011 Acts, ch 118, §85, 89; 2013 Acts, ch 34, §8;
2017 Acts, ch 29, §123
Referred to in§364.19,427.1(27)(c),427.1(27)(d),427B.2,427B.3,427B.4,427B.5,427B.7,427B.17
427B.2 Zoning under chapter 335.
1. The board of supervisors of a county which has appointed a county zoning commission
and provided for county zoning under chapter 335 may provide for a partial exemption from
property taxation of the actual value added to industrial real estate as provided under section
427B.1.
2. The board of supervisors of a county which has not appointed a zoning commission may
provide for a partial exemption from property taxation of the actual value added to industrial
real estate as provided under section 427B.1 in the following areas:
a. Outside the incorporated limits of a city to which a city has extended its zoning
ordinance pursuant to section 414.23 which complies with the city's zoning ordinance.
b. Outside the incorporated limits of a city which has adopted a zoning ordinance but
which has not extended the ordinance to the area permitted under section 414.23 if the
property would be within the area to which a city may extend a zoning ordinance pursuant
to section 414.23.
c. Outside the incorporated limits of a city which has not adopted a zoning ordinance but
which would be within the area to which a city may extend a zoning ordinance pursuant to
section 414.23.
3. The board of supervisors of a county which has not appointed a zoning commission may
provide for a partial exemption from property taxation of the actual value added to industrial
real estate as provided under section 427B.1 in an area where the partial exemption could
not otherwise be granted under this chapter where the actual value added is to industrial real
estate existing on July 1, 1979.
4. To grant an exemption under the provisions of this section, the county board of
supervisors shall comply with all of the requirements imposed by this chapter upon the city
council of a city.
[C81, §427B.2; 82 Acts, ch 1104, §21 -23]
2009 Acts, ch 41, §255
Referred to in§427B.1,427B.7,427B.17
427B.3 Period of partial exemption.
1. `Actual value added",as used in this chapter,means the actual value added as of the first
Thu Dec 05 12:25:46 2019 Iowa Code 2020, Chapter 427B (29, 1)
3 SPECIAL TAX PROVISIONS, §427B.5
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
1 of each year for which the exemption is received.
2. The actual value added to industrial real estate for the reasons specified in section
42713.1 is eligible to receive a partial exemption from taxation for a period of five years.
However, if property ceases to be classified as industrial real estate or ceases to be used as
a warehouse or distribution center, the partial exemption for the value added shall not be
allowed for subsequent assessment years.
3. a. 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.
b. This schedule shall be followed unless an alternative schedule is adopted by the city
council of a city or the board of supervisors of a county in accordance with section 427B.1.
4. However, the granting of the exemption under this section for new construction
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.
[C81, §427B.3]
84 Acts, ch 1232, §3; 2011 Acts, ch 34, §167
Referred to in 3427B.1.427B.7,427B.17
427B.4 Application for exemption by property owner.
1. An application shall be filed for each project resulting in actual value added for which
an exemption is claimed. The application for exemption shall be filed by the owner of the
property with the local assessor by February 1 of the assessment year in which the value
added is first assessed for taxation. Applications for exemption shall be made on forms
prescribed by the director of revenue and shall contain information pertaining to the nature
of the improvement, its cost, and other information deemed necessary by the director of
revenue.
2. A person may submit a proposal to the city council of the city or the board of supervisors
of a county to receive prior approval for eligibility for a tax exemption on new construction.
The city council or the board of supervisors, by ordinance, may give its prior approval of
a tax exemption for new construction if the new construction is in conformance with the
zoning plans for the city or county. The prior approval shall also be subject to the hearing
requirements of section 427B.1. Prior approval does not entitle the owner to exemption from
taxation until the new construction has been completed and found to be qualified real estate.
However, if the tax exemption for new construction is not approved, the person may submit
an amended proposal to the city council or board of supervisors to approve or reject.
[C81, §427B.4; 82 Acts, ch 1104, §24]
2000 Acts, ch 1058, §40; 2003 Acts, ch 145, §286; 2018 Acts, ch 1041, §127
Referred to in 4427.1(27)(d),427B.7,427B.17
427B.5 Exemption may be repealed.
When in the opinion of the city council or the county board of supervisors continuation of
the exemption granted by this chapter ceases to be of benefit to the city or county, the city
council or the county board of supervisors may repeal the ordinance authorized by section
427B.1, but all existing exemptions shall continue until their expiration.
[C81, §427B.5]
Referred to in§4275.17
Thu Dec 05 12:25:46 2019 Iowa Code 2020, Chapter 427B (29, 1)
§427B.6, SPECIAL TAX PROVISIONS 4
427B.6 Dual exemptions prohibited.
A property tax exemption under this chapter shall not be granted if the property for which
the exemption is claimed has received any other property tax exemption authorized by law.
[C81, §427B.61
427B.7 Actual value added exemption from tax—cattle facilities.
A city council, or a county board of supervisors as authorized by section 427B.2, may, by
ordinance as provided in section 427B.1,establish a partial exemption from property taxation
of the actual value added to owner-operated cattle facilities,including small or medium sized
feedlots but not including slaughter facilities,either by new construction or by the retrofitting
of existing facilities. The application for the exemption shall be filed pursuant to section
427B.4. The actual value added to owner-operated cattle facilities, as specified in section
427B.1, is eligible to receive a partial exemption from taxation for a period of five years. The
amount of actual value added which is eligible to be exempt from taxation is the same as
provided in the exemption schedule in section 427B.3.
87 Acts, ch 169, §10
427B.8 and 427B.9 Reserved.
SUBCHAPTER II
RESERVED
427B.10 through 427B.16 Reserved.
SUBCHAPTER III
SPECIAL VALUATION FOR MACHINERY, EQUIPMENT,AND COMPUTERS—STATE
REPLACEMENT FUNDS
427B.17 Property subject to special valuation.
1. For purposes of this section:
a. "Electric power generating plant"means any nameplate rated electric power generating
plant, in which electric energy is produced from other forms of energy, including all taxable
land, buildings, and equipment used in the production of such energy.
b. "Net acquisition cost"means the acquired cost of the property including all foundations
and installation cost less any excess cost adjustment.
c. "Net actual generation" means net electrical megawatt hours produced by the unit
during the preceding assessment year.
d. "Net capacity factor" means net actual generation divided by the product of net
maximum capacity times the number of hours the unit was in the active state during the
assessment year. Upon commissioning,a unit is in the active state until it is decommissioned.
e. "Net maximum capacity" means the capacity the unit can sustain over a specified
period when not restricted by ambient conditions or equipment deratings, minus the losses
associated with station service or auxiliary loads.
2. For property defined in section 427A.1, subsection 1, paragraphs "e" and "j", the
taxpayer's valuation shall be limited to thirty percent of the net acquisition cost of the
property, except as otherwise provided in subsections 3 and 4.
3. Property defined in section 427A.1, subsection 1, paragraphs "e"and "j",which is first
assessed for taxation in this state on or after January 1, 1995, shall be exempt from taxation.
4. Property defined in section 427A.1, subsection 1,paragraphs "e"and "j", and assessed
under subsection 2 of this section, shall be valued by the local assessor as follows for the
following assessment years:
a. For the assessment year beginning January 1, 1999, at twenty-two percent of the net
acquisition cost.
Thu Dec 05 12:25:46 2019 Iowa Code 2020, Chapter 427B (29, 1)
5 SPECIAL TAX PROVISIONS, §427B.19
b. For the assessment year beginning January 1, 2000, at fourteen percent of the net
acquisition cost.
c. For the assessment year beginning January 1,2001,at six percent of the net acquisition
cost.
d. For the assessment year beginning January 1,2002, and succeeding assessment years,
at zero percent of the net acquisition cost.
5. Property assessed pursuant to this section shall not be eligible to receive a partial
exemption under sections 427B.1 through 427B.5.
6. For the purpose of dividing taxes under section 260E.4, the employer's or business's
valuation of property defined in section 427A.1, subsection 1, paragraphs "e" and "j", and
used to fund a new jobs training project which project's first written agreement providing for
a division of taxes as provided in section 403.19 is approved on or before June 30, 1995, shall
be limited to thirty percent of the net acquisition cost of the property. The community college
shall notify the assessor by February 15 of each assessment year if taxes levied against such
property of an employer or business will be used to finance a project in the following fiscal
year. In any fiscal year in which the community college does rely on taxes levied against
an employer's or business's property defined in section 427A.1, subsection 1, paragraph "e"
or "j", to finance a project, such property shall not be valued pursuant to subsection 3 or 4,
whichever is applicable, for that fiscal year. An employer's or business's taxable property
used to fund a new jobs training project shall not be valued pursuant to subsection 3 or 4,
whichever is applicable, until the assessment year following the calendar year in which the
certificates or other funding obligations have been retired or escrowed. If the certificates
issued, or other funding obligations incurred, between January 1, 1982, and June 30, 1995,
are refinanced or refunded after June 30, 1995, the valuation of such property shall then
be the valuation specified in subsection 3 or 4, whichever is applicable, for the applicable
assessment year beginning with the assessment year following the calendar year in which
those certificates or other funding obligations are refinanced or refunded after June 30, 1995.
7. Notwithstanding subsection 8 or any other provision to the contrary, this section shall
be applicable to a new cogeneration facility subject to the assessed value provisions of
section 437A.16A,but the exemptions provided in this section shall be reduced by an amount
bearing the same ratio to the value of the property that is exempt pursuant to this section
as the allowable credit under section 437A.16A, subsection 1, bears to the assessable value
of the entire new cogeneration facility before the application of any abatements, credits, or
exemptions against that value.
8. a. This section shall not apply to property assessed by the department of revenue
pursuant to sections 428.24 through 428.29, or chapters 433, 434, 437, 437A, 437B, and 438,
and such property shall not receive the benefits of this section.
b. Any electric power generating plant which operated during the preceding assessment
year at a net capacity factor of more than twenty percent, shall not receive the benefits of this
section or of section 15.332.
85 Acts, ch 32, §109; 93 Acts, ch 180, §12; 95 Acts, ch 206, §29; 96 Acts, ch 1049, §2, 3, 9;
96 Acts, ch 1180, §18; 97 Acts, ch 66, §1, 2; 2002 Acts, ch 1150, §11; 2003 Acts, ch 145, §286;
2005 Acts, ch 150, §64, 69; 2011 Acts, ch 104, §1, 2; 2013 Acts, ch 90, §105; 2013 Acts, ch 94,
§5, 35, 36; 2018 Acts, ch 1026, §139
Referred to in§42713.19.427B.19A,427B.19C,427B.191),437A.3
For future amendment to subsection 8,paragraph a,effective July 1,2024,see 2018 Acts,ch 1158,§12.28
427B.18 Replacement.
Beginning with the fiscal year beginning July 1, 1996, each county treasurer shall be paid
from the industrial machinery,equipment and computers replacement fund an amount equal
to the amount of the industrial machinery, equipment and computers tax replacement claim,
as calculated in section 427B.19.
95 Acts, ch 206, §30
427B.19 Assessor and county auditor duties.
1. On or before July 1 of each fiscal year, the assessor shall determine the total assessed
Thu Dec 05 12:25:46 2019 Iowa Code 2020, Chapter 427B (29, 1)
§427B.19, SPECIAL TAX PROVISIONS 6
value of the property assessed under section 427B.17 for taxes payable in that fiscal year and
the total assessed value of such property assessed as of January 1, 1994, and shall report the
valuations to the county auditor.
2. On or before July 1 of each fiscal year, the assessor shall determine the valuation of
all commercial and industrial property assessed for taxes payable in that fiscal year and the
valuation of such property assessed as of January 1, 1994, and shall report the valuations to
the county auditor.
3. On or before September 1 of each fiscal year through June 30,2004,the county auditor
shall prepare a statement, based upon the report received pursuant to subsections 1 and 2,
listing for each taxing district in the county:
a. Beginning with the assessment year beginning January 1, 1995,the difference between
the assessed valuation of property assessed pursuant to section 427B.17 for that year and the
total assessed value of such property assessed as of January 1, 1994. If the total assessed
value of the property assessed as of January 1, 1994, is less, there is no tax replacement for
the fiscal year.
b. The tax levy rate for each taxing district for that fiscal year.
c. The industrial machinery, equipment and computers tax replacement claim for each
taxing district. For fiscal years beginning July 1, 1996, and ending June 30, 2001, the
replacement claim is equal to the amount determined pursuant to paragraph "a", multiplied
by the tax rate specified in paragraph"b". For fiscal years beginning July 1,2001,and ending
June 30, 2004, the replacement claim is equal to the product of the amount determined
pursuant to paragraph "a", less any increase in valuations determined in paragraph "d", and
the tax rate specified in paragraph"b". If the amount subtracted under paragraph"d"is more
than the amount determined in paragraph"a",there is no tax replacement for the fiscal year.
d. Beginning with the assessment year beginning January 1, 2000, the auditor shall
reduce the amount listed in paragraph "a", by the increase, if any, in assessed valuations of
commercial and industrial property in the assessment year beginning January 1, 1994, and
the assessment year for which taxes are due and payable in that fiscal year. If the calculation
under this paragraph indicates a net decrease in aggregate valuation of such property, the
industrial machinery, equipment and computers tax replacement claim for each taxing
district is equal to the amount determined pursuant to paragraph "a", multiplied by the tax
rate specified in paragraph "b".
4. The county auditor shall certify and forward one copy of the statement to the
department of revenue not later than September 1 of each year.
5. For purposes of this section, "assessed value of the property assessed under section
427B.17" does not include the value of property defined in section 427A.1, subsection
1, paragraphs "e" and "j", which is obligated to secure payment of certificates or other
indebtedness incurred pursuant to chapter 260E or 260F.
6. For purposes of computing replacement amounts under this section, that portion of an
urban renewal area defined as the sum of the assessed valuations defined in section 403.19,
subsections 1 and 2, shall be considered a taxing district.
95 Acts, ch 206, §31; 96 Acts,ch 1049, §4; 97 Acts, ch 158, §32, 33; 2003 Acts, ch 145, §286;
2003 Acts, ch 178, §5, 6
Referred to in§257.3,427B.18,427B.19A
427B.19A Fund created.
1. The industrial machinery, equipment and computers property tax replacement fund is
created. For the fiscal year beginning July 1, 1996, through the fiscal year ending June 30,
2004, there is appropriated annually from the general fund of the state to the department
of revenue to be credited to the industrial machinery, equipment and computers property
tax replacement fund, an amount sufficient to implement this subchapter. However, for the
fiscal year beginning July 1, 2003, the amount appropriated to the department of revenue to
be credited to the industrial machinery, equipment and computers tax replacement fund is
eleven million two hundred eighty-one thousand six hundred eighty-five dollars.
2. If an amount appropriated for a fiscal year is insufficient to pay all claims as a result
of action by the general assembly limiting the amount appropriated to the fund,the director
Thu Dec 05 12:25:46 2019 Iowa Code 2020, Chapter 427B (29, 1)
7 SPECIAL TAX PROVISIONS, §427B.19D
shall prorate the disbursements from the fund to the county treasurers and shall notify the
county auditors of the pro rata percentage on or before September 30.
3. The replacement claims shall be paid to each county treasurer in equal installments in
September and March of each year. The county treasurer shall apportion the replacement
claim payments among the eligible taxing districts in the county. If the taxing district is an
urban renewal area, the amount of the replacement claim shall be apportioned as provided
in subsection 4 unless the municipality elects to proceed under subsection 5.
4. a. If the total assessed value of property located in an urban renewal area taxing district
is equal to or more than that portion of such valuation defined in section 403.19, subsection
1, the total tax replacement amount computed pursuant to section 427B.19 shall be credited
to that portion of the assessed value defined in section 403.19, subsection 2.
b. If the total assessed value of the property is less than that portion of such valuation
defined in section 403.19, subsection 1, the replacement amount shall be credited to those
portions of the assessed value defined in section 403.19, subsections 1 and 2, as follows:
(1) To that portion defined in section 403.19,subsection 1,an amount equal to the amount
that would be produced by multiplying the applicable consolidated levy times the difference
between the assessed value of the taxable property defined in section 403.19, subsection 1,
and the total assessed value in the budget year for which the replacement claim is computed.
(2) To that portion defined in section 403.19, subsection 2,the remaining amount, if any.
c. Notwithstanding the allocation provisions of paragraphs"a"and"b",the amount of the
tax replacement amount that shall be allocated to that portion of the assessed value defined
in section 403.19, subsection 2, shall not exceed the amount equal to the amount certified to
the county auditor under section 403.19 for the budget year in which the claim is paid, after
deduction of the amount of other revenues committed for payment on that amount for the
budget year. The amount not allocated to that portion of the assessed value defined in section
403.19, subsection 2, as a result of the operation of this paragraph, shall be allocated to that
portion of assessed value defined in section 403.19, subsection 1.
5. A municipality may elect to reduce the amount of assessed value of property defined
in section 403.19, subsection 1, by an amount equal to that portion of the amount of such
assessed value which was phased out for the fiscal year by operation of section 427B.17,
subsection 4. The applicable assessment roll and ordinance providing for the division of taxes
under section 403.19 in the urban renewal taxing district shall be deemed to be modified for
that fiscal year only to the extent of such adjustment without further action on the part of the
city or county implementing the urban renewal taxing district.
95 Acts, ch 206, §32; 96 Acts, ch 1049, §5, 6; 97 Acts, ch 158, §34; 2001 Acts, ch 116, §22;
2003 Acts,ch 145, §286;2003 Acts, ch 178, §7; 2003 Acts, ch 179, §37; 2013 Acts, ch 90, §246;
2017 Acts, ch 54, §76
Referred to in§257.3,298.18A,427B.19C
427B.19B Guarantee of state replacement funds. Repealed by 2003 Acts, ch 178. §11.
427B.19C Adjustment of certain assessments required.
In the assessment year beginning January 1,2003,the amount of assessed value of property
defined in section 403.19, subsection 1, for an urban renewal taxing district which received
replacement moneys under section 427B.19A, subsection 4, shall be reduced by an amount
equal to that portion of the amount of assessed value of such property which was assessed
pursuant to section 427B.17, subsection 4.
96 Acts, ch 1049, §7; 2003 Acts, ch 178, §8; 2013 Acts, ch 90, §247
427B.19D Appeal for state assistance.
For fiscal years beginning on or after July 1, 1996, a municipality in which is located an
urban renewal district for which debt was incurred prior to June 30, 1996, may appeal to the
state appeal board for state assistance to meet such debt obligations for the fiscal year if such
debt is not secured by an assessment agreement pursuant to section 403.6,subsection 19,and
if the urban renewal area contains property assessed pursuant to section 427B.17. The appeal
Thu Dec 05 12:25:46 2019 Iowa Code 2020, Chapter 427B (29, 1)
§427B.19D,SPECIAL TAX PROVISIONS 8
shall be made by May 15 preceding the fiscal year on forms approved by the department of
management.
96 Acts, ch 1049, §8
SUBCHAPTER IV
UNDERGROUND STORAGE TANKS REMEDIAL ACTION CREDIT
427B.20 Local option remedial action property tax credit—public hearing.
1. As used in this subchapter:
a. Actual portion of the costs paid by the owner or operator of an underground storage
tank in connection with a remedial action for which the Iowa comprehensive petroleum
underground storage tank fund shares in the cost of corrective action" means the amount
determined by the fund's board, or the board's designee, as the administrator of the Iowa
comprehensive petroleum underground storage tank fund, and for which the owner or
operator was not reimbursed from any other source.
b. "Small business" means a business with gross receipts of less than five hundred
thousand dollars per year.
2. In order to further the public interests of protecting the drinking water supply,
preserving business and industry within a community, preserving convenient access to gas
stations within a community, or other public purposes, a city council or county board of
supervisors may provide by ordinance for partial or total property tax credits to owners of
small businesses that own or operate an underground storage tank to reduce the amount of
property taxes paid over the permitted period in amounts not to exceed the actual portion
of costs paid by the business owner in connection with a remedial action for which the Iowa
comprehensive petroleum underground storage tank fund shares in the cost of corrective
action, and for which the small business owner was not reimbursed from any other source.
A county board of supervisors may grant credits only for property located outside of the
corporate limits of a city, and a city council may grant credits only for property located
within the corporate limits of the city. The credit shall be taken on the property where the
underground storage tank is situated. The credit granted by the council or board shall not
exceed the amount of taxes generated by the property for the respective city or county. The
credit shall apply to property taxes payable in the fiscal year following the calendar year in
which a cost of remedial action was paid by the small business owner.
3. The ordinance may be enacted not less than thirty days after a public hearing is held
in accordance with section 335.6 in the case of a county,or section 362.3 in the case of a city.
The ordinance shall designate the length of time the partial or total credit shall be available,
and shall include a credit schedule and description of the terms and conditions of the credit.
4. A property tax credit provided under this section shall be paid for out of any available
funds budgeted for that purpose by the city council or county board of supervisors. A city
council may certify a tax for the general fund levy and a county board of supervisors may
certify a tax for the rural county service fund levy for property tax credits authorized by this
section.
5. The maximum permitted period of a tax credit granted under this section is ten years.
89 Acts, ch 131, §30; 2009 Acts, ch 41, §128; 2017 Acts, ch 54, §76
Referred to in 4427B.22
427B.21 Application for credit by underground storage tank owner or operator —
approval by county board of supervisors or city council.
1. An application shall be filed by an owner of a small business that owns or operates an
underground storage tank for each property for which a credit is sought. Applications shall
be filed with the respective county board of supervisors or the city council by September 30 of
the year following the calendar year in which a cost of remedial action was paid by the owner
or operator. Small business owners receiving credits shall file applications for renewal of the
credit by September 30 of each year. A credit may be renewed only if title to the credited
property remains in the name of the person or entity originally receiving the credit.
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9 SPECIAL TAX PROVISIONS, §427B.26
2. In reviewing the applications, the board of supervisors or city council shall consider
whether granting the credit would serve a public purpose. Upon approval of the application
by the board of supervisors, and after the applicant has paid any property taxes due, the
board shall direct the county treasurer to issue a warrant to the small business owner in the
amount of the credit granted. Upon approval of the application by the city council, and after
the applicant has paid any property taxes due, the council shall direct the city clerk to issue
a warrant to the small business owner in the amount of the credit granted.
3. Applications for credit shall be made on forms prescribed by the director of revenue and
shall contain information pertaining to the nature of the release, the total cost of corrective
action, the actual portion of the costs paid by the small business owner and for which the
owner was not reimbursed from any other source, the small business owner's income tax
form from the most recent tax year, and other information deemed necessary by the director.
89 Acts, ch 131, §31; 2003 Acts, ch 145, §286; 2018 Acts, ch 1041, §127
427B.22 Credit may be repealed.
If in the opinion of the city council or the county board of supervisors continuation of
the credit granted under an ordinance adopted pursuant to this subchapter ceases to be of
benefit to the city or county, the city council or the county board of supervisors may repeal
the ordinance authorized by section 42713.20,but all existing credits shall continue until their
expiration.
89 Acts, ch 131, §32; 2017 Acts, ch 54, §76
427B.23 through 427B.25 Reserved.
SUBCHAPTER V
SPECIAL VALUATION FOR WIND ENERGY CONVERSION PROPERTY
427B.26 Special valuation of wind energy conversion property.
1. a. A city council or county board of supervisors may provide by ordinance for the
special valuation of wind energy conversion property as provided in subsection 2. The
ordinance may be enacted not less than thirty days after a public hearing on the ordinance is
held. Notice of the hearing shall be published in accordance with section 331.305 in the case
of a county, or section 362.3 in the case of a city. The ordinance shall only apply to property
first assessed on or after the effective date of the ordinance.
b. If in the opinion of the city council or the county board of supervisors continuation of
the special valuation provided under this section ceases to be of benefit to the city or county,
the city council or the county board of supervisors may repeal the ordinance authorized by
this subsection. Property specially valued under this section prior to repeal of the ordinance
shall continue to be valued under this section until the end of the nineteenth assessment year
following the assessment year in which the property was first assessed.
2. In lieu of the valuation and assessment provisions in section 441.21, subsection 8,
paragraphs "b", "c",and"d",and sections 428.24 to 428.29,wind energy conversion property
which is first assessed for property taxation on or after January 1, 1994, and on or after the
effective date of the ordinance enacted pursuant to subsection 1, shall be valued by the local
assessor for property tax purposes as follows:
a. For the first assessment year, at zero percent of the net acquisition cost.
b. For the second through sixth assessment years, at a percent of the net acquisition cost
which rate increases by five percentage points each assessment year.
c. For the seventh and succeeding assessment years,at thirty percent of the net acquisition
cost.
3. The taxpayer shall file with the local assessor by February 1 of the assessment year
in which the wind energy conversion property is first assessed for property tax purposes, a
declaration of intent to have the property assessed at the value determined under this section
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§427B.26,SPECIAL TAX PROVISIONS 10
in lieu of the valuation and assessment provisions in section 441.21,subsection 8, paragraphs
"b", ..c", and "d", and sections 428.24 to 428.29.
4. For purposes of this section:
a. "Net acquisition cost"means the acquired cost of the property including all foundations
and installation cost less any excess cost adjustment.
b. "Wind energy conversion property" means the entire wind plant including, but not
limited to, a wind charger, windmill, wind turbine, tower and electrical equipment, pad
mount transformers, power lines, and substation.
93 Acts, ch 161, §2
Referred to in§437A.G,441.21,476B.6
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