Providing a property tax exemption for land used to produce food within the limits of a city

This bill provides a property tax exemption for property located within a city and certified as an urban farm by a city council pursuant to an urban farm ordinance. The ordinance cannot be adopted if another affected taxing entity objects. The property must be owned by a person who uses the property to produce food for use by, sale to, or otherwise for distribution to a nonprofit organization such as a food bank or emergency feeding organization. The person must own the property during the exemption period equal to at least consecutive assessment years. The property may be leased to a person. The exemption applies to a person who has been transferred a title or leasehold interest in the property. The city must decertify the property if the property has not been continuously used as an urban farm or a person who holds an ownership or a leasehold interest in the property fails to comply with the requirements of the bill. A so-called “clawback” provision applies. The ordinance may provide that if property is decertified, all taxes that would have been levied during the period the exemption was in effect are due. A city may use revenue collected from the tax to assist a person whose lease was terminated due to a decertification in leasing new property certified by the city. The clawback provision does not apply if the property was decertified because the lessee was in breach of contract or the lessee failed to comply with the requirements of the bill, including the terms of the ordinance.7.7 provides that for a property tax credit or exemption enacted on or after January 1, 1997, if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation.