[Adopted as Ch. 8 of the 2000 Code]
The purpose of this article is to provide 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.
For use in this article the following terms are defined:
The actual value added as of the first year for which the
exemption is received, except that actual value added by improvements
to machinery and equipment means the actual value as determined by
the local assessor as of January 1 of each year for which the exemption
is received.
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.
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 competitively to manufacture or process those products,
which determination shall receive prior approval from the City Council
of the City.
[Amended 3-23-2023 by Ord. No. 23-02]
New machinery and equipment assessed as real estate pursuant to § 427A.1, Subsection 1, Paragraph e, Code of Iowa, unless the machinery or equipment is part of the normal replacement or operating process to maintain or expand the existing operational status.
A building or group of buildings devoted primarily to research
and development activities, including, but not limited to, the design
and production 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.
A building or structure used as a public warehouse for the
storage of goods pursuant to Chapter 554, Article 7, of the Code of
Iowa, 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.
[Amended 3-23-2023 by Ord. No. 23-02]
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, 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.
The amount of actual value added which is eligible to be exempt
from taxation shall be as follows:
The granting of the exemption under this article 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.
An application shall be filed for each project resulting in
actual value added for which an exemption is claimed.
A.
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.
B.
Applications for exemption shall
be made on forms prescribed by the Director of Revenue and Finance
and shall contain information pertaining to the nature of the improvement,
its cost, and other information deemed necessary by the Director of
Revenue and Finance.
[Amended 3-23-2023 by Ord. No. 23-02]
A person may submit a proposal to the City Council to receive
prior approval for eligibility for a tax exemption on new construction.
If the City Council resolves to consider such proposal, it shall publish
notice and hold a public hearing thereon. Thereafter, at least 30
days after such hearing 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 City zoning. 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.
When in the opinion of the City Council continuation of the
exemption granted by this article ceases to be of benefit to the City,
the City Council may repeal this article, but all existing exemptions
shall continue until their expiration.
A property tax exemption under this article shall not be granted
if the property for which the exemption is claimed has received any
other property tax exemption authorized by law.
