Iowa 2023-2024 Regular Session

Iowa House Bill HF156

Introduced
1/30/23  
Introduced
1/30/23  

Caption

A bill for an act providing a property tax exemption for land used to produce food within the limits of a city.

Impact

The implementation of HF156 is expected to encourage the development of urban agriculture by easing financial burdens on urban farmers through property tax exemptions. It aligns with contemporary movements to promote local food systems and sustainable agricultural practices in urban environments. However, it also introduces a mechanism for oversight, as cities must decertify properties that are not continuously used as urban farms or if owners fail to comply with regulatory requirements. This ensures that the benefits of the exemption are directed at active producers rather than speculators or inactive properties.

Summary

House File 156 is a legislative proposal aimed at providing a property tax exemption for land used specifically for producing food within city limits. This bill establishes criteria for urban farms, which must be recognized by city councils through a formal ordinance. The property must be owned by individuals who utilize it for food production with the intent to distribute the food to nonprofit organizations, such as food banks. The exemption applies over a minimum period of ten consecutive assessment years, offering a stable incentive for urban farming initiatives within municipalities.

Contention

A notable point of contention surrounding HF156 centers on the requirement that the city council must notify and obtain approval from affected taxing entities before implementing the urban farm ordinance. Critics argue that this could lead to complications and delays, dissuading cities from adopting or updating ordinances geared towards urban farming. Furthermore, the provision allowing cities to impose a ‘clawback’ mechanism, which requires repayment of tax exemptions if the urban farming status is revoked, raises concerns about potential financial risks for farmers who may encounter unforeseen challenges.

Additional_notes

As cities consider adopting these ordinances, the balance between promoting urban agriculture and ensuring compliance and accountability will be crucial. The legislation reflects a shift towards recognizing the value of local food sourcing, while also embedding a rigid framework that governs the terms and continuity of tax exemptions for urban farms.

Companion Bills

No companion bills found.

Previously Filed As

IA SB107

Providing a sales tax exemption for period products, diapers and incontinence products.

IA HB2073

Providing a sales tax exemption for feminine hygiene products and diapers.

IA SB389

Providing a sales tax exemption for feminine hygiene products, diapers and incontinence products.

IA H6256

Repeals the property tax and sales and use tax exemption for boats.

IA HB2572

Providing a sales tax exemption for purchases made to establish and maintain Kansas war memorials and providing a property tax exemption for property with Kansas war memorials.

IA HB122

AN ACT relating to sales and use tax exemptions for baby and personal care products.

IA HB114

AN ACT relating to sales and use tax exemptions for baby and personal care products.

IA S1510

Homestead Property Exemptions and Assessment Limitation

IA HB440

Providing tax incentives to put Montana-produced food first

IA S1512

Property Tax Exemption and Assessment Limitation on Long-term Leased Property

Similar Bills

CA SB1352

Property taxation: newly constructed: reconstructed property.

CA AB245

Property taxation: application of base year value: disaster relief.

CA SB1053

Property taxation: transfer of base year value: disaster relief.

CA SB603

An act to amend Section 69 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

HI HB1398

Relating To Property.

HI HB1398

Relating To Property.

TX HB2011

Relating to the right to repurchase from a condemning entity certain real property for which ad valorem taxes are delinquent.