TITLE Vl:
PROPERTY AND LAND USE
CHAPTER
3 INDUSTRIAL REAL ESTATE
6-3-1 Purpose
6-3-2 Definitions
6-3-3 Period of Partial Exemption
6-3-4 Amounts Eligible for Exemption
6-3-5 Zones of Eligibility
6-3-6 Limitations
6-3-7
Applications
6-3-8
Approval
6-3-9
Exemption Repealed
6-3-10
Dual Exemptions Prohibited
6-3-1 Purpose. The purpose of this chapter 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 and distribution centers.
6-3-2
DEFINITIONS. For use in this chapter the following
terms are defined:
1.
“Actual value added” means the actual value
added as the first year for which the exemption is received.
2.
“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.
3.
“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 competitively to manufacture or process those products, which
determination shall receive prior approval from the Board of Supervisors upon
the recommendation of the Iowa Department of Economic Development.
4.
“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 or
manufacture of prototype for experimental use, and corporate research
services which do not have a primary purpose of providing on-site services to
the public.
5.
“Warehouse” means a building or structure
used as a public warehouse for the storage of goods pursuant to Chapter 554,
Article 7, 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.
6-3-3
PERIOD OF PARTIAL EXEMPTION. The actual value added to industrial real
estate by the new construction of industrial real estate, research-service
facilities, warehouses and distribution centers is eligible to receive a partial
exemption from the taxation for a period of five (5) years Section 427B.3,
Code of Iowa:
1.
For the first (1st) year,
seventy-five percent (75%);
2.
For the second (2nd) year,
sixty percent (60%);
3.
For the third (3rd) year,
forty-five percent (45%);
4.
For the fourth (4th) year,
thirty percent (30%);
5.
For the fifth (5th) year,
fifteen percent (15%).
6-3-4
ZONES OF ELIGIBILITY. Lee County, Iowa, has not adopted a zoning
ordinance and is therefore required to limit the application of the Chapter
to certain zones. To be eligible for
the partial property tax exemption granted by this Chapter, industrial real
estate or machinery and equipment assessed as real estate must lay entirely
within one or more of the following geographic areas:
1.
Outside of the incorporated limits of a
city to which a city has extended its zoning ordinance pursuant to Section
424.23, Code of Iowa. The industrial
construction or addition of machinery and equipment must comply with that
city’s zoning ordinance.
2.
Outside the incorporated limits of a city
which has adopted a zoning ordinance but which has not extended the zoning
ordinance to the area permitted under Section 414.23, Code of Iowa, if the
property would be within the area to which a city may extend a zoning
ordinance pursuant to Section 414.23.
3.
Outside of 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 Section414.23,
Code of Iowa.
4.
In any area where the partial exemption
could not otherwise be granted if the property was classified as “industrial
real estate” on July 1, 1979.
5.
The County Assessor’s office shall
construct a map showing the geographic areas in Lee County, Iowa, which are
eligible for partial property tax exemption under this Ordinance. In the event of a dispute, the aggrieved
property owner may seek review by the Board of Supervisors.
6-3-5
LIMITATIONS. The
granting of exemption under this chapter 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 estate before the start of the new
construction added Section 427B.3, Code of Iowa.
6-3-6
APPLICATIONS. An application shall be filed for each project resulting in
actual value added for which an exemption is claimed.
1.
The application for exemption shall be
filed by the owner of the property with the County Assessor by February 1 of
the assessment year in which the value added is first assessed for taxation.
2.
Application 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.
6-3-7
APPROVAL.
A person may submit a proposal to the Board of Supervisors of Lee
County, Iowa, to receive prior approval for eligibility for a tax exemption
on new construction. The Board of
Supervisors, by resolution, 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 County. 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 Board of Supervisors to approve or reject.
6-3-8
EXEMPTION REPEALED. When in the opinion of the Board of
Supervisors continuation of the exemption granted by the Chapter ceases to be
of benefit to the County, the Board of Supervisors may repeal this chapter,
but all exemptions shall continue until their expiration.
6-3-9
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
Section 427B.6, Code of Iowa.
Published November
4, 1987
Revised March 9, 2006
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