[New; Ord. 81-757 § 2]
The City Council, by this chapter, provides for a partial exemption
from property taxation of the actual value added to industrial real
estate by the new construction of industrial real estate and the acquisition
of or improvement to machinery and equipment assessed as real estate
as established by state law.
[Ord. 81-757 § 3]
Under this chapter the partial exemption from taxation as provided in Section 3.28.010 of this chapter shall be available for a period of five years.
[Ord. 81-757 § 4]
A.
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 upon the recommendation of the Iowa development commission.
The exemption shall also apply to new machinery and equipment assessed
as real estate pursuant to Section 427A.1, subsection 1, paragraph
e, of the Iowa Code unless the machinery or equipment is part of the
normal replacement or operating process to maintain or expand the
existing operational status.
B.
DIRECTOR OF REVENUE - Means the director of the Iowa State Department
of Revenue.
C.
ACTUAL VALUE ADDED - As used in this chapter means the actual value
as of the first year for which the exemption is received, except that
actual value added by improvements to machinery and equipment means
the actual value as determined by the assessor as of January first
of each year for which the exemption is received.
[Ord. 81-757 § 5]
The amount of actual value added which is eligible to be exempt
from taxation shall be as follows:
A.
For the first year, 75%.
B.
For the second year, 60%.
C.
For the third year, 45%.
D.
For the fourth year, 30%.
E.
For the fifth year, 15%.
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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.
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[Ord. 81-757 § 6]
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 first 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.
A person may submit a proposal to the City Council to receive
prior approval for eligibility for a tax exemption on new construction.
The City Council, 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. Such prior approval shall 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 to approve or reject.
[Ord. 81-757 § 7]
When in the opinion of the City Council continuation of the
exemption granted by this chapter ceases to be of benefit to the City,
the City Council may repeal this chapter but all existing exemptions
shall continue until their expiration.
[Ord. 81-757 § 8]
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.
[Ord. 81-757 § 9]
This chapter shall not apply to any industrial construction
commenced prior to the effective date of the chapter, nor shall it
apply to any industrial construction for which a building permit has
been issued on the effective date of the chapter. This chapter shall
not apply to new machinery and equipment that is otherwise eligible
for the exemption granted herein which was ordered or purchased prior
to the effective date of this chapter. The effective date of this
chapter is September, 1981.
