Iowa Administrative Code › Agency 701 - Revenue Department › Title II - Property Tax › Chapter 110 - Property Tax Credits and Exemptions › Rule 701-110.5 - Speculative Shell Buildings

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Authority of city council and board of supervisors.
A city
				council or county board of supervisors may enact an ordinance granting property
				tax exemptions for value added as a result of new construction of speculative
				shell buildings or additions to existing buildings or structures, or may exempt
				the value of an existing building or structure being reconstructed or renovated
				and the value of the land on which the building or structure is located, if the
				reconstruction or renovation constitutes complete replacement or refitting of
				an existing building or structure owned by community development organizations,
				not-for-profit cooperative associations under Iowa Code chapter 499A, or
				for-profit entities. See Iowa Code Supplement section
				427.1(27)  as
				amended by 2008 Iowa Acts, Senate File 2419, for definitions. The value added
				exemption for new construction includes reconstruction and renovation
				constituting complete replacement or refitting of existing buildings and
				structures if the reconstruction or renovation is required due to economic
				obsolescence, or to implement industry standards in order to competitively
				manufacture or process products, or to market a building or structure as a
				speculative shell building. The exemption for reconstruction or renovation not
				constituting new construction does not have to meet these requirements but has
				to meet only the requirements set forth in the definition of a speculative
				shell building. The council or board in the ordinance authorizing the exemption
				shall specify if the exemption will be allowed to community development
				organizations, not-for-profit cooperative associations under Iowa Code chapter
				499B, or for-profit entities, and the length of time the exemption is to be
				allowed.
(2)
Eligibility
				for exemption.
The value added by new construction, reconstruction, or
				renovation and first assessed prior to January 1 of the calendar year in which
				an ordinance authorizing a tax exemption becomes effective is not eligible for
				exemption. However, the value added as of January 1 of the calendar year in
				which the ordinance becomes effective is eligible for exemption if the
				ordinance is in effect on February 1 of that calendar year. This subrule does
				not apply to new construction projects having received prior approval. For
				reconstruction and renovation projects not constituting new construction, the
				ordinance authorizing the exemption must be in effect by February 1 of the year
				the project commences for the exemption to be allowable in the subsequent
				assessment year.
(3)
Application for exemption.
a. A community development organization,
				not-for-profit cooperative association, or for-profit entity must file an
				application for exemption with the assessor between January 1 and February 1,
				inclusive, of the year in which the value added for new construction is first
				assessed for the exemption to be allowable for that assessment year. For
				reconstruction and renovation projects not constituting new construction, an
				application for exemption must be filed by February 1 of the assessment year in
				which the project commences for the exemption to be allowable the following
				assessment year. If approved, no application for exemption is required to be
				filed in subsequent years for the value added exemption or the reconstruction
				or renovation exemption not constituting new construction. An application
				cannot be filed if a valid ordinance has not been enacted. If an application is
				not filed by February 1 of the year in which the value added for new
				construction is first assessed, the organization, association, or entity cannot
				receive, in subsequent years, the exemption for that value added. However, if
				the organization, association, or entity has received prior approval, the
				application must be filed by February 1 of the year in which the total value
				added for the new construction is first assessed.
b. If February 1 falls on either a Saturday
				or Sunday, applications for exemption may be filed the following
				Monday.
c. Applications submitted
				by mail must be accepted if postmarked on or before February 1 or, if February
				1 falls on either a Saturday or Sunday, a postmark date of the following Monday
				is acceptable.