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Home My WebLink About1985-01-22 OrdinanceORDINANCE NO. 65-3222 AN ORDINANCE PROVIDING FOR THE PARTIAL EXEMPTION FROM PROPERTY TAXES FOR INDUS- TRIAL PROPERTIES ON WHICH IMPROVEMENTS HAVE BEEN MADE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY: SECTION I. That Chapter 32.1 of the Municipal Code of the City of Iowa City be amended to add the following: Article III. Partial Property Tax Exemption for Industrial Property. Section 32.1-31. Established. There is hereby established 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 acquisi- tion of or improvement to machinery and equipment assessed as real estate pursuant to Section 427A.1, Subsection 1, paragraph a of the 1963 Code of Iowa. Section 32.1-32. Definitions. For the purpose of this article the following definitions shall apply: (a) Actual value added. 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 assessor as of January 1 of each year for which the exemption is received. (b) New Construction. New building and structures and new buildings and structures which are con- structed as additions to existing buildings and structures. New construction does not include reconstruction of an existing building or structure which does not constitute complete replace- ment 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 obsoles- Ordinance No. 8S-3: Page 2 cence and the reconstruction is necessary to implement recognized industry standards for the manufacturing and processing of specific products and the recon- struction 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 recom- mendation of the Iowa Development Commission. (c) New Machinery and Equipment. New machinery and equipment assessed as real estate pursuant to Section 427A.1, Subsection 1, paragraph e, of the 1983 Code of Iowa unless the machinery or equipment is part of the normal replacement or operating process to maintain or j expand the existing operational status. Section 32.1-33. Period and Amount of Exemption. The actual value added to industrial real estate for the reasons specified in Section 32.1-31 is eligible to receive a partial exemption from taxation for a period of five years. 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%. Section 32.1-34. Limitation on I Amount of Exemption. 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 for the industrial real estate before the start of the new construc- tion added. FM Ordinance No. 85-?' Page 3 Section 32.1-35. Application for filedtion. An for each project t�resulting on shall 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 City Assessor by February 1 of the assess- ment year in which the value added is first assessed for taxation. Applica- tions for exemption shall be made on forms prescribed by the Director of Revenue and shall contain information pertaining to the nature of the 1 improvement, its cost, and other } information deemed necessary by the Director of Revenue. j Section 32.1-36. Application for Prior Approval. A person may submit a proposal to the City Council to receive I prior approval for eligibility for 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 Chapter 36, the Zoning Ordinance of Iowa City. The ordinance may be enacted not less than 30 days after a public hearing is held in accordance with Section 362.3 of the 1983 Code of Iowa. Such prior approval shall not entitle the owner to exemption from taxation until the new construction has been completed and found to be quali- fied 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. Section 32.1-37. Repeal. When in the opinion of the City Council continuation of the exemption granted by this ordinance ceases to be of benefit to the City, the City Council may repeal this ordinance, but all existing exemptions shall continue until their expiration. Section 32 Prohibited. A1property uExemptions tax eption under this ordinance shall not be granted if the property for which the M Ordinance No. Page 4 exemption is claimed has received any other property tax exemption authorized by law. SECTION II. This ordinance shall be in full force and effect from and after its passage and publication ds provided by law. SECTION III. REPEALER: All ordinances and parts of ordinances in conflict with the provision of this ordinance are hereby repealed. SECTION IV. SEVERABILITY: If any section, provision or par of the Ordi- nance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the Ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. Passed and approved this 22nd. day of January, 1985 MAYOR ATTEST: ) C TY CLERK Rerelved & Approved ny Tli. egal Dep rtmeet i is � It was moved by Ambrisco and seconded by Dickson that the Ordinance as rea a adopted and upon ro c—Tl aTl—Mere were: AYES: NAYS: ABSENT: X AMBRISCO X BAKER X DICKSON _ ERDAHL X MCDONALD X STRAIT — ZUBER First consideration 1/8/85 Vote for passage: Ayes: Dickson, Strait, Zuber, Ambrisco, Nays: Brdahl Absent: Baker, McDonald Second consideration 1/15/85 Vote for passage Ayes: Ambrisco, Dickson, WDonald, Strait, Zuber Nays: Baker, Brdahl Date published January 26. 1985 M 1 I � 1 1 f 0., It was moved by Ambrisco and seconded by Dickson that the Ordinance as rea a adopted and upon ro c—Tl aTl—Mere were: AYES: NAYS: ABSENT: X AMBRISCO X BAKER X DICKSON _ ERDAHL X MCDONALD X STRAIT — ZUBER First consideration 1/8/85 Vote for passage: Ayes: Dickson, Strait, Zuber, Ambrisco, Nays: Brdahl Absent: Baker, McDonald Second consideration 1/15/85 Vote for passage Ayes: Ambrisco, Dickson, WDonald, Strait, Zuber Nays: Baker, Brdahl Date published January 26. 1985 M