427.1 EXEMPTIONS.
The following classes of property shall not be taxed:
1. Federal and state property.
a. The property of the United States and this state,
including state university, university of science and technology, and
school lands, except as otherwise provided in this subsection. The
exemption herein provided shall not include any real property subject
to taxation under any federal statute applicable thereto, but such
exemption shall extend to and include all machinery and equipment
owned exclusively by the United States or any corporate agency or
instrumentality thereof without regard to the manner of the
affixation of such machinery and equipment to the land or building
upon or in which such property is located, until such time as the
Congress of the United States shall expressly authorize the taxation
of such machinery and equipment.
b. Property of the state operated pursuant to section
904.302, 904.705, or 904.706 that is leased to an entity other than
an entity which is exempt from property taxation under this section
shall be subject to property taxation for the term of the lease.
Property taxes levied against such leased property shall be paid from
the revolving farm fund created in section 904.706. The lessor shall
file a copy of the lease with the county assessor of the county where
the property is located.
2. Municipal and military property. The property of a
county, township, city, school corporation, levee district, drainage
district, or the Iowa national guard, when devoted to public use and
not held for pecuniary profit, except property of a municipally owned
electric utility held under joint ownership and property of an
electric power facility financed under chapter 28F or 476A that shall
be subject to taxation under chapter 437A and facilities of a
municipal utility that are used for the provision of local exchange
services pursuant to chapter 476, but only to the extent such
facilities are used to provide such services, which shall be subject
to taxation under chapter 433, except that section 433.11 shall not
apply. The exemption for property owned by a city or county also
applies to property which is operated by a city or county as a
library, art gallery or museum, conservatory, botanical garden or
display, observatory or science museum, or as a location for holding
athletic contests, sports or entertainment events, expositions,
meetings or conventions, or leased from the city or county for any
such purposes, or leased from the city or county by the Iowa national
guard or by a federal agency for the benefit of the Iowa national
guard when devoted for public use and not for pecuniary profit. Food
and beverages may be served at the events or locations without
affecting the exemptions, provided the city has approved the serving
of food and beverages on the property if the property is owned by the
city or the county has approved the serving of food and beverages on
the property if the property is owned by the county. The exemption
for property owned by a city or county also applies to property which
is located at an airport and leased to a fixed base operator
providing aeronautical services to the public.
3. Public grounds and cemeteries. Public grounds, including
all places for the burial of the dead; and crematoriums with the
land, not exceeding one acre, on which they are built and appurtenant
thereto, so long as no dividends or profits are derived therefrom.
4. Fire company buildings and grounds. The publicly owned
buildings and grounds used exclusively for keeping fire engines and
implements for extinguishing fires and for meetings of fire
companies.
5. Property of associations of war veterans. The property of
any organization composed wholly of veterans of any war, when such
property is devoted entirely to its own use and not held for
pecuniary profit. The operation of bingo games on property of such
organization shall not adversely affect the exemption of that
property under this subsection if all proceeds, in excess of
expenses, are used for the legitimate purposes of the organization.
6. Property of cemetery associations. Burial grounds,
mausoleums, buildings and equipment owned and operated by cemetery
associations and used exclusively for the maintenance and care of the
cemeteries devoted to interment of human bodies and human remains.
The exemption granted by this subsection shall not apply to any
property used for the practice of mortuary science.
7. Libraries and art galleries. All grounds and buildings
used for public libraries, public art galleries, and libraries and
art galleries owned and kept by private individuals, associations, or
corporations, for public use and not for private profit. Claims for
exemption for libraries and art galleries owned and kept by private
individuals, associations, or corporations for public use and not for
private profit must be filed with the local assessor by February 1 of
the first year the exemption is requested. Once the exemption is
granted, the exemption shall continue to be granted for subsequent
assessment years without further filing of claims as long as the
property continues to be used as a library or art gallery for public
use and not for private profit.
8. Property of religious, literary, and charitable societies.
All grounds and buildings used or under construction by literary,
scientific, charitable, benevolent, agricultural, and religious
institutions and societies solely for their appropriate objects, not
exceeding three hundred twenty acres in extent and not leased or
otherwise used or under construction with a view to pecuniary profit.
However, an organization mentioned in this subsection whose primary
objective is to preserve land in its natural state may own or lease
land not exceeding three hundred twenty acres in each county for its
appropriate objects. All deeds or leases by which such property is
held shall be filed for record before the property herein described
shall be omitted from the assessment. All such property shall be
listed upon the tax rolls of the district or districts in which it is
located and shall have ascribed to it an actual fair market value and
an assessed or taxable value, as contemplated by section 441.21,
whether such property be subject to a levy or be exempted as herein
provided and such information shall be open to public inspection.
9. Property of educational institutions. Real estate owned
by any educational institution of this state as a part of its
endowment fund, to the extent of one hundred sixty acres in any civil
township except any real property acquired after January 1, 1965, by
any educational institution as a part of its endowment fund or upon
which any income is derived or used, directly or indirectly, for full
or partial payment for services rendered, shall be taxed beginning
with the levies applied for taxes payable in the year 1967, at the
same rate as all other property of the same class in the taxing
district in which the real property is located. The property
acquired prior to January 1, 1965, and held or owned as part of the
endowment fund of an educational institution shall be subject to
assessment and levy in the assessment year 1974 for taxes payable in
1975. All the property shall be listed on the assessment rolls in
the district in which the property is located and an actual fair
market value and an assessed or taxable value be ascribed to it, as
contemplated by section 441.21, irrespective of whether an exemption
under this subsection may be or is affirmed, and the information
shall be open to public inspection; it being the intent of this
section that the property be valued whether or not it be subject to a
levy. Every educational institution claiming an exemption under this
subsection shall file with the assessor not later than February 1 of
the year for which the exemption is requested, a statement upon forms
to be prescribed by the director of revenue, describing and locating
the property upon which exemption is claimed. Property which is
located on the campus grounds and used for student union purposes may
serve food and beverages without affecting its exemption received
pursuant to subsection 8 or this subsection.
10. Homes for soldiers. The buildings and grounds of homes
owned and operated by organizations of soldiers, sailors, or marines
of any of the wars of the United States when used for a home for
disabled soldiers, sailors, or marines and not operated for pecuniary
profit.
11. Agricultural produce. Growing agricultural and
horticultural crops except commercial orchards and vineyards.
12. Government lands. Government lands entered and located,
or lands purchased from this state, for the year in which the entry,
location, or purchase is made.
13. Public airports. Any lands, the use of which (without
charge by or compensation to the holder of the legal title thereto)
has been granted to and accepted by the state or any political
subdivision thereof for airport or aircraft landing area purposes.
14. Statement of objects and uses filed. A society or
organization claiming an exemption under subsection 5, 8, or 33 shall
file with the assessor not later than February 1 a statement upon
forms to be prescribed by the director of revenue, describing the
nature of the property upon which the exemption is claimed and
setting out in detail any uses and income from the property derived
from the rentals, leases, or other uses of the property not solely
for the appropriate objects of the society or organization. Upon the
filing and allowance of the claim, the claim shall be allowed on the
property for successive years without further filing as long as the
property is used for the purposes specified in the original claim for
exemption. When the property is sold or transferred, the county
recorder shall provide notice of the transfer to the assessor. The
notice shall describe the property transferred and the name of the
person to whom title to the property is transferred.
a. The assessor, in arriving at the valuation of any property
of the society or organization, shall take into consideration any
uses of the property not for the appropriate objects of the
organization and shall assess in the same manner as other property,
all or any portion of the property involved which is leased or rented
and is used regularly for commercial purposes for a profit to a party
or individual. If a portion of the property is used regularly for
commercial purposes, an exemption shall not be allowed upon property
so used and the exemption granted shall be in the proportion of the
value of the property used solely for the appropriate objects of the
organization, to the entire value of the property. However, the
board of trustees or the board of directors of a hospital, as defined
in section 135B.1, may permit use of a portion of the hospital for
commercial purposes, and the hospital is entitled to full exemption
for that portion used for nonprofit health-related purposes, upon
compliance with the filing requirements of this subsection. The
property of a nursing facility, as defined in section 135C.1,
subsection 13, which is exempt from federal income tax under section
501(c)(3) of the Internal Revenue Code, and otherwise qualified, is
entitled to the full exemption of the property regardless of the
proportion of residents of the facility for whom the cost of care is
privately paid or paid under Tit. XIX of the federal Social Security
Act, upon compliance with the filing requirements of this subsection.
b. An exemption shall not be granted upon property upon or in
which persistent violations of the laws of the state are permitted.
A claimant of an exemption shall, under oath, declare that no
violations of law will be knowingly permitted or have been permitted
on or after January 1 of the year in which a tax exemption is
requested. Claims for exemption shall be verified under oath by the
president or other responsible head of the organization. A society
or organization which ceases to use the property for the purposes
stated in the claim shall provide written notice to the assessor of
the change in use.
15. Mandatory denial. No exemption shall be granted upon any
property which is the location of federally licensed devices not
lawfully permitted to operate under the laws of the state.
16. Revoking or modifying exemption. Any taxpayer or any
taxing district may make application to the director of revenue for
revocation or modification of any exemption, based upon alleged
violations of this chapter. The director of revenue may also on the
director's own motion set aside or modify any exemption which has
been granted upon property for which exemption is claimed under this
chapter. The director of revenue shall give notice by mail to the
taxpayer or taxing district applicant and to the societies or
organizations claiming an exemption upon property, exemption of which
is questioned before or by the director of revenue, and shall hold a
hearing prior to issuing any order for revocation or modification.
An order made by the director of revenue revoking or modifying an
exemption shall be applicable to the tax year commencing with the tax
year in which the application is made to the director or the tax year
commencing with the tax year in which the director's own motion is
filed. An order made by the director of revenue revoking or
modifying an exemption is subject to judicial review in accordance
with chapter 17A, the Iowa administrative procedure Act.
Notwithstanding the terms of chapter 17A, petitions for judicial
review may be filed in the district court having jurisdiction in the
county in which the property is located, and must be filed within
thirty days after any order revoking or modifying an exemption is
made by the director of revenue.
17. Rural water sales. The real property of a nonprofit
corporation engaged in the distribution and sale of water to rural
areas when devoted to public use and not held for pecuniary profit.
18. Assessed value of exempt property. Each county and city
assessor shall determine the assessment value that would be assigned
to the property if it were taxable and value all tax exempt property
within the assessor's jurisdiction. A summary report of tax exempt
property shall be filed with the director of revenue and the local
board of review on or before April 16 of each year on forms
prescribed by the director of revenue.
19. Pollution control and recycling. Pollution-control or
recycling property as defined in this subsection shall be exempt from
taxation to the extent provided in this subsection, upon compliance
with the provisions of this subsection.
a. (1) This exemption shall apply to new installations of
pollution-control or recycling property beginning on January 1 after
the construction or installation of the property is completed. This
exemption shall apply beginning on January 1, 1975, to existing
pollution-control property if its construction or installation was
completed after September 23, 1970, and this exemption shall apply
beginning January 1, 1994, to recycling property.
(2) This exemption shall be limited to the market value, as
defined in section 441.21, of the pollution-control or recycling
property. If the pollution-control or recycling property is assessed
with other property as a unit, this exemption shall be limited to the
net market value added by the pollution-control or recycling
property, determined as of the assessment date.
b. (1) Application for this exemption shall be filed with the
assessing authority not later than the first of February of the first
year for which the exemption is requested, on forms provided by the
department of revenue. The application shall describe and locate the
specific pollution-control or recycling property to be exempted.
(2) The application for a specific pollution-control or recycling
property shall be accompanied by a certificate of the department of
natural resources certifying that the primary use of the
pollution-control property is to control or abate pollution of any
air or water of this state or to enhance the quality of any air or
water of this state or, if the property is recycling property, that
the primary use of the property is for recycling.
c. A taxpayer may seek judicial review of a determination of
the department or, on appeal, of the environmental protection
commission in accordance with the provisions of chapter 17A.
d. The environmental protection commission of the department
of natural resources shall adopt rules relating to certification
under this subsection and information to be submitted for evaluating
pollution-control or recycling property for which a certificate is
requested. The department of revenue shall adopt any rules necessary
to implement this subsection, including rules on identification and
valuation of pollution-control or recycling property. All rules
adopted shall be subject to the provisions of chapter 17A.
e. (1) For the purposes of this subsection,
"pollution-control property" means personal property or
improvements to real property, or any portion thereof, used primarily
to control or abate pollution of any air or water of this state or
used primarily to enhance the quality of any air or water of this
state and "recycling property" means personal property or
improvements to real property or any portion of the property, used
primarily in the manufacturing process and resulting directly in the
conversion of waste glass, waste plastic, wastepaper products, waste
paperboard, or waste wood products into new raw materials or products
composed primarily of recycled material. In the event such property
shall also serve other purposes or uses of productive benefit to the
owner of the property, only such portion of the assessed valuation
thereof as may reasonably be calculated to be necessary for and
devoted to the control or abatement of pollution, to the enhancement
of the quality of the air or water of this state, or for recycling
shall be exempt from taxation under this subsection.
(2) For the purposes of this subsection, "pollution" means
air pollution as defined in section 455B.131 or water pollution as
defined in section 455B.171. "Water of the state" means the
water of the state as defined in section 455B.171. "Enhance the
quality" means to diminish the level of pollutants below the air or
water quality standards established by the environmental protection
commission of the department of natural resources.
20. Impoundment structures.
a. The impoundment structure and any land underlying an
impoundment located outside an incorporated city, which are not
developed or used directly or indirectly for nonagricultural
income-producing purposes and which are maintained in a condition
satisfactory to the soil and water conservation district
commissioners of the county in which the impoundment structure and
the impoundment are located. A person owning land which qualifies
for a property tax exemption under this subsection shall apply to the
county assessor each year not later than February 1 for the
exemption. The application shall be made on forms prescribed by the
department of revenue. The first application shall be accompanied by
a copy of the water storage permit approved by the director of the
department of natural resources or the director's designee, and a
copy of the plan for the construction of the impoundment structure
and the impoundment. The construction plan shall be used to
determine the total acre-feet of the impoundment and the amount of
land which is eligible for the property tax exemption. The county
assessor shall annually review each application for the property tax
exemption under this subsection and submit it, with the
recommendation of the soil and water conservation district
commissioners, to the board of supervisors for approval or denial.
An applicant for a property tax exemption under this subsection may
appeal the decision of the board of supervisors to the district
court.
b. As used in this subsection, "impoundment" means a
reservoir or pond which has a storage capacity of at least eighteen
acre-feet of water or sediment at the time of construction;
"storage capacity" means the total area below the crest elevation
of the principal spillway including the volume of any excavation in
the area; and "impoundment structure" means a dam, earthfill, or
other structure used to create an impoundment.
21. Low-rent housing. The property owned and operated or
controlled by a nonprofit organization, as recognized by the internal
revenue service, providing low-rent housing for persons who are
elderly and persons with physical and mental disabilities. The
exemption granted under the provisions of this subsection shall apply
only until the final payment due date of the borrower's original
low-rent housing development mortgage or until the borrower's
original low-rent housing development mortgage is paid in full or
expires, whichever is sooner, subject to the provisions of subsection
14. However, if the borrower's original low-rent housing development
mortgage is refinanced, the exemption shall apply only until the date
that would have been the final payment due date under the terms of
the borrower's original low-rent housing development mortgage or
until the refinanced mortgage is paid in full or expires, whichever
is sooner, subject to the provisions of subsection 14.
21A. Dwelling unit property owned by community housing
development organization. Dwelling unit property owned and managed
by a community housing development organization, as recognized by the
state of Iowa and the federal government pursuant to criteria for
community housing development organization designation contained in
the HOME program of the federal National Affordable Housing Act of
1990, if the organization is also a nonprofit organization exempt
from federal income tax under section 501(c)(3) of the Internal
Revenue Code and owns and manages more than one hundred fifty
dwelling units that are located in a city with a population of more
than one hundred ten thousand. For the 2005 and 2006 assessment
years, an application is not required to be filed to receive the
exemption. For the 2007 and subsequent assessment years, an
application for exemption must be filed with the assessing authority
not later than February 1 of the assessment year for which the
exemption is sought. Upon the filing and allowance of the claim, the
claim shall be allowed on the property for successive years without
further filing as long as the property continues to qualify for the
exemption.
22. Natural conservation or wildlife areas. Recreational
lakes, forest covers, rivers and streams, river and stream banks, and
open prairies as designated by the board of supervisors of the county
in which located. The board of supervisors shall annually designate
the real property, not to exceed in the aggregate for the fiscal year
beginning July 1, 1983, the greater of one percent of the acres
assessed as agricultural land or three thousand acres in each county,
for which this exemption shall apply. For subsequent fiscal years,
the limitation on the maximum acreage of real property that may be
granted exemptions shall be the limitation for the previous fiscal
year, unless the amount of acreage granted exemptions for the
previous fiscal year equaled the limitation for that year, then the
limitation for the subsequent fiscal year is the limitation for the
previous fiscal year plus an increase, not to exceed three hundred
acres, of ten percent of that limitation. The procedures of this
subsection shall be followed for each assessment year to procure an
exemption for the fiscal year beginning in the assessment year. The
exemption shall be only for the fiscal year for which it is granted.
A parcel of property may be granted subsequent exemptions. The
exemption shall only be granted for parcels of property of two acres
or more.
a. Application for this exemption shall be filed with the
commissioners of the soil and water conservation district in which
the property is located, not later than February 1 of the assessment
year, on forms provided by the department of revenue. The
application shall describe and locate the property to be exempted and
have attached to it an aerial photo of that property on which is
outlined the boundaries of the property to be exempted. In the case
of an open prairie that has been restored or reestablished, the
property shall be inspected and certified as provided by the county
board of supervisors as having adequate ground cover consisting of
native species and that all primary and secondary noxious weeds
present are being controlled to prevent the spread of seeds by either
wind or water. In the case of an open prairie which is or includes a
gully area susceptible to severe erosion, an approved erosion control
plan must accompany the application.
b. Upon receipt of the application, the commissioners shall
certify whether the property is eligible to receive the exemption.
The commissioners shall not withhold certification of the eligibility
of property because of the existence upon the property of an
abandoned building or structure which is not used for economic gain.
If the commissioners certify that the property is eligible, the
application shall be forwarded to the board of supervisors by May 1
of that assessment year with the certification of the eligible
acreage. An application must be accompanied by an affidavit signed
by the applicant that if an exemption is granted, the property will
not be used for economic gain during the assessment year in which the
exemption is granted.
c. In the case of an open prairie that has been restored or
reestablished and that does not receive the certification as provided
by the county board of supervisors as it relates to the ground cover,
the applicant shall be notified of the availability of resource
enhancement and protection fund cost-share moneys and soil and
conservation technological assistance for reestablishing native
vegetation.
d. Before the board of supervisors may designate real
property for the exemption, it shall establish priorities for the
types of real property for which an exemption may be granted and the
amount of acreage. These priorities may be the same as or different
than those for previous years. The board of supervisors shall get
the approval of the governing body of the city before an exemption
may be granted to real property located within the corporate limits
of that city. A public hearing shall be held with notice given as
provided in section 73A.2 at which the proposed priority list shall
be presented. However, no public hearing is required if the proposed
priorities are the same as those for the previous year. After the
public hearing, the board of supervisors shall adopt by resolution
the proposed priority list or another priority list. Property upon
which are located abandoned buildings or structures shall have the
lowest priority on the list adopted, except where the board of
supervisors determines that a structure has historic significance.
The board of supervisors shall also provide for a procedure where the
amount of acres for which exemptions are sought exceeds the amount
the priority list provides for that type or in the aggregate for all
types.
e. After receipt of an application with its accompanying
certification and affidavit and the establishment of the priority
list, the board of supervisors may grant a tax exemption under this
subsection using the established priority list as a mandate. Real
property designated for the tax exemption shall be designated by May
15 of the assessment year in which begins the fiscal year for which
the exemption is granted. Notification shall be sent to the county
auditor and the applicant.
f. The board of supervisors does not have to grant tax
exemptions under this subsection, grant tax exemptions in the
aggregate of the maximum acreage which may be granted exemptions, or
grant a tax exemption for the total acreage for which the applicant
requested the exemption. Only real property in parcels of two acres
or more which is recreational lakes, forest cover, river and stream,
river and stream banks, or open prairie and which is utilized for the
purposes of providing soil erosion control or wildlife habitat or
both, and which is subject to property tax for the fiscal year for
which the tax exemption is requested, is eligible for the exemption
under this subsection. However, in addition to the above, in order
for a gully area which is susceptible to severe erosion to be
eligible, there must be an erosion control plan for it approved by
the commissioners of the soil and water conservation district in
which it is located. In the case of an open prairie that has been
restored or reestablished, the property shall be inspected and
certified as provided by the county board of supervisors as having
adequate ground cover consisting of native species and that all
primary and secondary noxious weeds present are being controlled to
prevent the spread of seeds by either wind or water. In the case of
an exemption for river and stream or river and stream banks, the
exemption shall not be granted unless there is included in the
exemption land located at least thirty-three feet from the ordinary
high water mark of the river and stream or river and stream banks.
Property shall not be denied an exemption because of the existence
upon the property of an abandoned building or structure which is not
used for economic gain. If the real property is located within a
city, the approval of the governing body must be obtained before the
real property is eligible for an exemption. For purposes of this
subsection:
(1) "Open prairies" includes hillsides and gully areas which
have a permanent grass cover but does not include native prairies
meeting the criteria of the natural resource commission.
(2) "Forest cover" means land which is predominantly wooded.
(3) "Recreational lake" means a body of water, which is not a
river or stream, owned solely by a nonprofit organization and
primarily used for boating, fishing, swimming, and other recreational
purposes.
(4) "Used for economic gain" includes, but is not limited to,
using property for the storage of equipment, machinery, or crops.
g. Notwithstanding other requirements under this subsection,
the owner of any property lying between a river or stream and a dike
which is required to be set back three hundred feet or less from the
river or stream shall automatically be granted an exemption for that
property upon submission of an application accompanied by an
affidavit signed by the applicant that if the exemption is granted
the property will not be used for economic gain during the period of
exemption. The exemption shall continue from year to year for as
long as the property qualifies and is not used for economic gain,
without need for filing additional applications or affidavits.
Property exempted pursuant to this paragraph is in addition to the
maximum acreage applicable to other exemptions under this subsection.
23. Native prairie and wetland. Land designated as native
prairie or land designated as a protected wetland by the department
of natural resources pursuant to section 456B.12.
a. Application for the exemption shall be made on forms
provided by the department of revenue. Land designated as a
protected wetland shall be assessed at a value equal to the average
value of the land where the wetland is located and which is owned by
the person granted the exemption. The application forms shall be
filed with the assessing authority not later than the first of
February of the year for which the exemption is requested. The
application must be accompanied by an affidavit signed by the
applicant that if the exemption is granted, the property will not be
used for economic gain during the assessment year in which the
exemption is granted. If the property is used for economic gain
during the assessment year in which the exemption is granted, the
property shall lose its tax exemption and shall be taxed at the rate
levied by the county for the fiscal year beginning in that assessment
year. The first annual application shall be accompanied by a
certificate from the department of natural resources stating that the
land is native prairie or protected wetland. The department of
natural resources shall issue a certificate for the native prairie
exemption if the department finds that the land has never been
cultivated, is unimproved, is primarily a mixture of warm season
grasses interspersed with flowering plants, and meets the other
criteria established by the natural resource commission for native
prairie. The department of natural resources shall issue a
certificate for the wetland exemption if the department finds the
land is a protected wetland, as defined under section 456B.1, or if
the wetland was previously drained and cropped but has been restored
under a nonpermanent restoration agreement with the department or
other county, state, or federal agency or private conservation group.
A taxpayer may seek judicial review of a decision of the department
according to chapter 17A. The natural resource commission shall
adopt rules to implement this subsection.
b. The assessing authority each year may submit to the
department a claim for reimbursement of tax revenue lost from the
exemption. Upon receipt of the claim, the department shall reimburse
the assessing authority an amount equal to the lost tax revenue based
on the value of the protected wetland as assessed by the authority,
unless the department reimburses the authority based upon a
departmental assessment of the protected wetland. The authority may
contest the department's assessment as provided in chapter 17A. The
department is not required to honor a claim submitted more than sixty
days after the authority has assessed land where the protected
wetland is located and which is owned by the person granted the
exemption.
24. Land certified as a wildlife habitat.
a. The owner of agricultural land may designate not more than
two acres of the land for use as a wildlife habitat. After
inspection, if the land meets the standards established by the
natural resource commission for a wildlife habitat under section
483A.3, and, in the case of a wildlife habitat that has been restored
or reestablished, is inspected and certified as provided by the
county board of supervisors as having adequate ground cover
consisting of native species and that all primary and secondary
noxious weeds present are being controlled to prevent the spread of
seeds by either wind or water, the department of natural resources
shall certify the designated land as a wildlife habitat and shall
send a copy of the certification to the appropriate assessor not
later than February 1 of the assessment year for which the exemption
is requested. The department of natural resources may subsequently
withdraw certification of the designated land if it fails to meet the
established standards for a wildlife habitat and the ground cover
requirement and the assessor shall be given written notice of the
decertification.
b. In the case where the property is a restored or
reestablished wildlife habitat and does not receive the certification
as provided by the county board of supervisors as it relates to the
ground cover, the owner shall be notified of the availability of
resource enhancement and protection fund cost-share moneys and soil
and conservation technological assistance for reestablishing native
vegetation.
25. Reserved.
26. Public television station. All grounds and buildings
used or under construction for a public television station and not
leased or otherwise used or under construction for pecuniary profit.
27. Speculative shell buildings of certain organizations.
a. New construction of shell buildings by community
development organizations, not-for-profit cooperative associations
under chapter 499, or for-profit entities for speculative purposes as
provided in this subsection.
b. The exemption shall be for one of the following:
(1) The value added by new construction of a shell building or
addition to an existing building or structure by a community
development organization, not-for-profit cooperative association
under chapter 499, or for-profit entity.
(2) The value of an existing building being reconstructed or
renovated, and the value of the land on which the building is
located, if the reconstruction or renovation constitutes complete
replacement or refitting of the existing building or structure, by a
community development organization, not-for-profit cooperative
association under chapter 499, or for-profit entity.
c. The exemption or partial exemption shall be allowed only
pursuant to ordinance of a city council or board of supervisors,
which ordinance shall specify if the exemption will be available for
community development organizations, not-for-profit cooperative
associations under chapter 499, or for-profit entities. If the
exemption is for a project described in paragraph "b",
subparagraph (1), the exemption shall be effective for the assessment
year in which the building is first assessed for property taxation or
the assessment year in which the addition to an existing building
first adds value. If the exemption is for a project described in
paragraph "b", subparagraph (2), the exemption shall be effective
for the assessment year following the assessment year in which the
project commences. An exemption allowed under this subsection shall
be allowed for all subsequent years until the property is leased or
sold or for a specific time period stated in the ordinance or until
the exemption is terminated by ordinance of the city council or board
of supervisors which approved the exemption. Eligibility for an
exemption as a speculative shell building shall be determined as of
January 1 of the assessment year. However, an exemption shall not be
granted a speculative shell building of a not-for-profit cooperative
association under chapter 499 or a for-profit entity if the building
is used by the cooperative association or for-profit entity, or a
subsidiary or majority owners thereof for other than as a speculative
shell building. If the shell building or any portion of the shell
building is leased or sold, the portion of the shell building which
is leased or sold, and a proportionate share of the land on which it
is located if applicable, shall not be entitled to an exemption under
this subsection for subsequent years. Upon the sale of the shell
building, the shell building shall be considered new construction for
purposes of section 427B.1 if used for purposes set forth in section
427B.1.
d. (1) If the speculative shell building project is a
speculative shell building project described in paragraph "b",
subparagraph (1), an application shall be filed pursuant to section
427B.4 for each such project for which an exemption is claimed.
(2) If the speculative shell building project is a speculative
shell building project described in paragraph "b", subparagraph
(2), an application shall be filed by the owner of the property with
the local assessor by February 1 of the assessment year in which the
project commences. 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. The city
council or the board of supervisors, by ordinance, shall give its
approval of a tax exemption for the project if the project is in
conformance with the zoning plans for the city or county. The
approval shall also be subject to the hearing requirements of section
427B.1. Approval under this subparagraph (2) entitles the owner to
exemption from taxation beginning in the assessment year following
the assessment year in which the project commences. However, if the
tax exemption for the building and land is not approved, the person
may submit an amended proposal to the city council or board of
supervisors to approve or reject.
e. For purposes of this subsection the following definitions
apply:
(1) (a) "Community development organization" means an
organization, which meets the membership requirements of subparagraph
division (b), formed within a city or county or multicommunity group
for one or more of the following purposes:
(i) To promote, stimulate, develop, and advance the business
prosperity and economic welfare of the community, area, or region and
its citizens.
(ii) To encourage and assist the location of new business and
industry.
(iii) To rehabilitate and assist existing business and industry.
(iv) To stimulate and assist in the expansion of business
activity.
(b) For purposes of this definition, a community development
organization must have at least fifteen members with representation
from the following:
(i) A representative from government at the level or levels
corresponding to the community development organization's area of
operation.
(ii) A representative from a private sector lending institution.
(iii) A representative of a community organization in the area.
(iv) A representative of business in the area.
(v) A representative of private citizens in the community, area,
or region.
(2) "New construction" means new buildings or structures and
includes new buildings or structures which are constructed as
additions to existing buildings or structures. "New
construction" also includes reconstruction or renovation of an
existing building or structure which constitutes complete replacement
of an existing building or structure or refitting of an existing
building or structure, if the reconstruction or renovation of the
existing building or structure is required due to economic
obsolescence, if the reconstruction or renovation is necessary to
implement recognized industry standards for the manufacturing or
processing of products, and the reconstruction or renovation is
required in order to competitively manufacture or process products or
for community development organizations, not-for-profit cooperative
associations under chapter 499, or for-profit entities to market a
building or structure as a speculative shell building, which
determination must receive prior approval from the city council of
the city or county board of supervisors of the county.
(3) "Speculative shell building" means a building or
structure owned and constructed or reconstructed by a community
development organization, a not-for-profit cooperative association
under chapter 499, or a for-profit entity without a tenant or buyer
for the purpose of attracting an employer or user which will complete
the building to the employer's or user's specification for
manufacturing, processing, or warehousing the employer's or user's
product line.
28. Joint water utilities. The property of a joint water
utility established under chapter 389, when devoted to public use and
not held for pecuniary profit.
29. Methane gas conversion. Methane gas conversion property
shall be exempt from taxation.
a. For purposes of this subsection, "methane gas conversion
property" means personal property, real property, and improvements
to real property, and machinery, equipment, and computers assessed as
real property pursuant to section 427A.1, subsection 1, paragraphs
"e" and "j", used in an operation to decompose waste and
convert the waste to gas, to collect methane gas or other gases
produced as a by-product of waste decomposition and to convert the
gas to energy, or to collect waste in order to decompose the waste to
produce methane gas or other gases and to convert the gas to energy.
b. If the property used to convert the gas to energy also
burns another fuel, the exemption shall apply to that portion of the
value of such property which equals the ratio that its use of methane
gas bears to total fuel consumed.
c. Application for this exemption shall be filed with the
assessing authority not later than February 1 of each year for which
the exemption is requested on forms provided by the department of
revenue. The application shall describe and locate the specific
methane gas conversion property to be exempted. If the property
consuming methane gas also consumes another fuel, the first year
application shall contain a statement to that effect and shall
identify the other fuel and estimate the ratio that the methane gas
consumed bears to the total fuel consumed. Subsequent year
applications shall identify the actual ratio for the previous year
which ratio shall be used to calculate the exemption for that
assessment year.
d. With respect to methane gas conversion property other than
that used in an operation connected with, or in conjunction with, a
publicly owned sanitary landfill, the exemption pursuant to this
subsection shall be limited to property originally placed in
operation on or after January 1, 2008, and on or before December 31,
2012, and shall be available for the ten-year period following the
date the property was originally placed in operation.
30. Manufactured home community or mobile home park storm
shelter. A structure constructed as a storm shelter at a
manufactured home community or mobile home park as defined in section
435.1. An application for this exemption shall be filed with the
assessing authority not later than February 1 of the first year for
which the exemption is requested, on forms provided by the department
of revenue. The application shall describe and locate the storm
shelter to be exempted. If the storm shelter structure is used
exclusively as a storm shelter, all of the structure's assessed value
shall be exempt from taxation. If the storm shelter structure is not
used exclusively as a storm shelter, the storm shelter structure
shall be assessed for taxation at fifty percent of its value as
commercial property.
31. Barn preservation. The increase in assessed value added
to a farm structure constructed prior to 1937 as a result of
improvements made to the farm structure for purposes of preserving
the integrity of the internal and external features of the structure
as a barn is exempt from taxation. To be eligible for the exemption,
the structure must have been first placed in service as a barn prior
to 1937. The exemption shall apply to the assessment year beginning
after the completion of the improvements to preserve the structure as
a barn.
a. For purposes of this subsection, "barn" means an
agricultural structure, in whatever shape or design, which is used
for the storage of farm products or feed or for the housing of farm
animals, poultry, or farm equipment.
b. Application for this exemption shall be filed with the
assessing authority not later than February 1 of the first year for
which the exemption is requested, on forms provided by the department
of revenue. The application shall describe and locate the specific
structure for which the added value is requested to be exempt.
c. Once the exemption is granted, the exemption shall
continue to be granted for subsequent assessment years without
further filing of applications as long as the structure continues to
be used as a barn. The taxpayer shall notify the assessing authority
when the structure ceases to be used as a barn.
32. One-room schoolhouse preservation. The increase in
assessed value added to a one-room schoolhouse as a result of
improvements made to the structure for purposes of preserving the
integrity of the internal and external features of the structure as a
one-room schoolhouse is exempt from taxation. The exemption shall
apply to the assessment year beginning after the completion of the
improvements to preserve the structure as a one-room schoolhouse.
a. Application for this exemption shall be filed with the
assessing authority not later than February 1 of the first year for
which the exemption is requested, on forms provided by the department
of revenue. The application shall describe and locate the specific
one-room schoolhouse for which the added value is requested to be
exempt.
b. Once the exemption is granted, the exemption shall
continue to be granted for subsequent assessment years without
further filing of applications as long as the structure is not used
for dwelling purposes and the structure is preserved as a one-room
schoolhouse. The taxpayer shall notify the assessing authority when
the structure ceases to be eligible. The exemption in this
subsection applies even though the one-room schoolhouse is no longer
used for instructional purposes.
33. Indian housing authority property.
a. Property owned and operated by an Indian housing
authority, as defined in 24 C.F.R. § 950.102, created under Indian
law, if a cooperative agreement has been made with the local
governing body agreeing to the exemption. The exemption in this
subsection is subject to the provisions of subsection 14.
b. For purposes of this subsection:
(1) "Indian law" means the code of an Indian tribe recognized
as eligible for services provided to Indians by the United States
secretary of the interior.
(2) "Local governing body" means the county board of
supervisors if the property is located outside an incorporated city
or the governing body of the city in which the property is located.
34. Port authority property. The property of a port
authority created pursuant to section 28J.2, when devoted to public
use and not held for pecuniary profit.
35. Web search portal business property.
a. Property, other than land and buildings and other
improvements, that is utilized by a web search portal business as
defined in and meeting the requirements of section 423.3, subsection
92, including computers and equipment that are necessary for the
maintenance and operation of a web search portal and other property
whether directly or indirectly connected to the computers, including
but not limited to cooling systems, cooling towers, and other
temperature control infrastructure; power infrastructure for
transformation, distribution, or management of electricity, including
but not limited to exterior dedicated business-owned substations, and
power distribution systems which are not subject to assessment under
chapter 437A; racking systems, cabling, and trays; and back-up power
generation systems, battery systems, and related infrastructure all
of which are necessary for the maintenance and operation of the web
search portal site.
b. This exemption applies beginning with the assessment year
the investment in or construction of the facility utilizing the
materials, equipment, and systems set forth in paragraph "a" are
first assessed. For purposes of claiming this exemption, the
requirements may be met by aggregating the various Iowa investments
and other requirements of the web search portal business's affiliates
as allowed under section 423.3, subsection 92. This exemption
applies to affiliates of the web search portal business.
36. Web search property.
a. Property, other than land and buildings and other
improvements, that is utilized by a web search portal business as
defined in and meeting the requirements of section 423.3, subsection
93, including computers and equipment that are necessary for the
maintenance and operation of a web search portal business and other
property whether directly or indirectly connected to the computers,
including but not limited to cooling systems, cooling towers, and
other temperature control infrastructure; power infrastructure for
transformation, distribution, or management of electricity, including
but not limited to exterior dedicated business-owned substations, and
power distribution systems which are not subject to assessment under
chapter 437A; racking systems, cabling, and trays; and back-up power
generation systems, battery systems, and related infrastructure all
of which are necessary for the maintenance and operation of the web
search portal business.
b. This web search portal business exemption applies
beginning with the assessment year the investment in or construction
of the facility utilizing the materials, equipment, and systems set
forth in paragraph "a" are first assessed. For purposes of
claiming this web search portal business exemption, the requirements
may be met by aggregating the various Iowa investments and other
requirements of the web search portal business's affiliates as
allowed under section 423.3, subsection 93. This exemption applies
to affiliates of the web search portal business.
37. Data center business property.
a. Property, other than land and buildings and other
improvements, that is utilized by a data center business as defined
in and meeting the requirements of section 423.3, subsection 95,
including computers and equipment that are necessary for the
maintenance and operation of a data center business and other
property whether directly or indirectly connected to the computers,
including but not limited to cooling systems, cooling towers, and
other temperature control infrastructure; power infrastructure for
transformation, distribution, or management of electricity, including
but not limited to exterior dedicated business-owned substations, and
power distribution systems which are not subject to assessment under
chapter 437A; racking systems, cabling, and trays; and backup power
generation systems, battery systems, and related infrastructure all
of which are necessary for the maintenance and operation of the data
center business.
b. This data center business exemption applies beginning with
the assessment year the investment in or construction of the facility
utilizing the materials, equipment, and systems set forth in
paragraph "a" are first assessed. Section History: Ey Form
1. [C51, § 455; R60, § 711; C73, § 797; C97, §
1304; SS15, § 1304; C24, 27, 31, 35, 39, § 6944; C46, 50, 54, 58,
62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
2. [C51, § 455; R60, § 711; C73, § 797; C97, §
1304; SS15, § 1304; C24, 27, 31, 35, 39, § 6944; C46, 50, 54, 58,
62, 66, 71, 73, 75, 77, 79, 81, § 427.1; 81 Acts, ch 31, § 8]
3, 4. [C51, § 455; R60, § 711; C73, § 797; C97, §
1304; SS15, § 1304; C24, 27, 31, 35, 39, § 6944; C46, 50, 54, 58,
62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
5. [SS15, § 1304; C24, 27, 31, 35, 39, § 6944;
C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
6. [C24, 27, 31, 35, 39, § 6944; C46, 50, 54,
58, 62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
7, 8, 9, 10. [C51, § 455; R60, § 711; C73, § 797;
C97, § 1304; SS15, § 1304; C24, 27, 31, 35, 39, § 6944; C46, 50,
54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 427.1; 82 Acts, ch 1247, §
1]
11. [C97, § 1304; SS15, § 1304; C24, 27, 31, 35,
39, § 6944; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §
427.1]
12. [C24, 27, 31, 35, 39, § 6944; C46, 50, 54,
58, 62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
13. [C51, § 455; R60, § 711; C73, § 797; C97, §
1304; SS15, § 1304; C24, 27, 31, 35, 39, § 6944; C46, 50, 54, 58,
62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
14. [C97, § 1304; SS15, § 1304; C24, 27, 31, 35,
39, § 6944; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §
427.1]
15. [C97, § 1304; SS15, § 1304; C24, 27, 31, 35,
39, § 6944; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §
427.1]
16. [C51, § 455; R60, § 711; C73, § 797; C97, §
1304; SS15, § 1304; C24, 27, 31, 35, 39, § 6944; C46, 50, 54, 58,
62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
17. [R60, § 711; C73, § 797; C97, § 1304; SS15, §
1304; C24, 27, 31, 35, 39, § 6944; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 427.1]
18. [SS15, § 1304; C24, 27, 31, 35, 39, § 6944;
C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
19. [C51, § 468, 469; R60, § 723, 724; C73, § 815,
816; C97, § 1318, 1319, 1323; S13, § 1330-g, 1342-g, 1346-g; SS15, §
1346-s; C24, 27, 31, 35, 39, § 6944; C46, 50, 54, 58, 62, 66, 71,
73, 75, 77, 79, 81, § 427.1]
20. [C35, 39, § 6944; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 427.1]
21. [C50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §
427.1]
22. [C62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
23. [C50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §
427.1]
24, 25. [C50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, § 427.1]
26. [C54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §
427.1]
27. [C54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §
427.1]
28. [C62, 66, 71, 73, 75, 77, 79, 81, § 427.1]
29. [C66, 71, 73, 75, 77, 79, 81, § 427.1]
30. [C71, 73, 75, 77, 79, 81, § 427.1]
31. [C73, 75, 77, 79, 81, § 427.1; 82 Acts, ch
1034, § 1]
32. [C75, 77, 79, 81, § 427.1; 82 Acts, ch 1199, §
92, 93, 96]
33. [C75, 77, 79, 81, § 427.1; 82 Acts, ch 1199, §
69, 96]
34. [C77, 79, 81, § 427.1]
35. [C79, 81, § 427.1]
36. [82 Acts, ch 1247, § 2]
37. [82 Acts, ch 1247, § 2]
38. [82 Acts, ch 1247, § 2] Sectio 83 Acts, ch 121, § 8; 83 Acts, ch 133, § 1, 2; 83 Acts, ch 178, § 1; 84 Acts, ch 1222, § 5, 6, 7; 85 Acts, ch 32, § 102; 86 Acts, ch 1113, § 1, 2; 86 Acts, ch 1200, § 8; 86 Acts, ch 1241, § 35; 87 Acts, ch 23, § 12--14; 87 Acts, ch 233, § 495; 88 Acts, ch 1134, § 81; 89 Acts, ch 296, §43, 44; 90 Acts, ch 1006, § 1; 90 Acts, ch 1199, § 5--8; 91 Acts, ch 97, §52, 53; 91 Acts, ch 168, §8; 92 Acts, ch 1073, §10, 11; 92 Acts, ch 1225, §3, 4; 93 Acts, ch 121, §1; 93 Acts, ch 159, §1; 95 Acts, ch 83, §19; 95 Acts, ch 84, §1--3; 96 Acts, ch 1034, § 39; 96 Acts, ch 1129, § 94; 96 Acts, ch 1167, § 5; 97 Acts, ch 158, §30; 98 Acts, ch 1194, § 28, 40; 99 Acts, ch 63, §5, 8; 99 Acts, ch 151, §41, 42, 89; 99 Acts, ch 152, §17, 40; 99 Acts, ch 186, §3--5; 99 Acts, ch 208, §56; 2000 Acts, ch 1058, §39; 2000 Acts, ch 1194, §15, 17; 2000 Acts, ch 1205, §1; 2001 Acts, ch 59, §1, 3; 2001 Acts, ch 116, §20; 2001 Acts, ch 139, §1, 2, 4; 2001 Acts, ch 150, §11--14, 26; 2001 Acts, ch 153, §16; 2001 Acts, 1st Ex, ch 4, §4, 36; 2002 Acts, ch 1119, §55, 56; 2002 Acts, ch 1151, §19; 2002 Acts, ch 1162, §39, 40; 2003 Acts, ch 121, §1--3; 2003 Acts, ch 130, §1, 2, 5; 2003 Acts, ch 136, §1, 3; 2003 Acts, ch 145, §286; 2005 Acts, ch 122, §1, 2; 2005 Acts, ch 150, §118; 2005 Acts, ch 179, §67--69, 84, 86, 87; 2006 Acts, ch 1125, §1, 2; 2006 Acts, ch 1158, §57; 2006 Acts, ch 1182, §62; 2006 Acts, ch 1185, §84, 89; 2007 Acts, ch 199, §3; 2008 Acts, ch 1006, §2, 3; 2008 Acts, ch 1143, §1, 2; 2008 Acts, ch 1184, §61; 2009 Acts, ch 41, §263; 2009 Acts, ch 97, §13; 2009 Acts, ch 179, §200, 223, 224, 227 Referred to in § 28J.19, 331.301, 331.401, 347.32, 364.4, 364.19, 420.207, 421.17, 422.7, 422.35, 423A.5, 427.3, 427.13, 437A.4, 437A.6, 456A.16, 461A.79, 463B.2, 465A.4, 483A.3, 904.302, 904.705 Federally owned lands, § 1.4 et seq. Leased church property, § 565.1 Contracts with city or county for services, see § 364.19
Footnotes
2006 amendment to subsection 19 applies to taxes due and payable
in fiscal years beginning on or after July 1, 2007; 2006 Acts, ch
1125, §2
2006 amendment to subsection 21A concerning the filing of
applications takes effect June 2, 2006, and applies retroactively to
January 1, 2005, for assessment years beginning on or after that
date; 2006 Acts, ch 1185, §89
2008 amendment to subsection 27 takes effect May 7, 2008, and
applies retroactively to January 1, 2007, for projects approved by a
city council or board of supervisors prior to that date; claims for
exemption for the 2007, 2008, or 2009 assessment years shall be filed
with the appropriate governing body on or before October 1, 2008;
2008 Acts, ch 1143, §2
2009 amendments to subsection 29 take effect May 26, 2009, and
apply retroactively to assessment years beginning on or after January
1, 2008; exemption claims for 2008 and 2009 assessment years to be
filed on or before June 30, 2009; 2009 Acts, ch 179, §227
Deadline for filing an exemption claim under subsection 14 is
extended to May 1, 2009, for property located in a county declared a
disaster area in 2008 if a society or organization was unable to file
due to the need to respond to a natural disaster occurring in
calendar year 2008; 2009 Acts, ch 179, §100, 153