Clayton County, Iowa

Military Service Tax Exemption

An exemption of $2,778 is given to World War I veterans and $1,852 to all other veterans for active or reserve duty service in the United States armed forces.  These values can vary, however, if the state appropriation that funds this exemption is not sufficient to do so.  For more information on signing up for this exemption in Clayton County, contact the Clayton County Assessor's Office.

Low Rent Housing for Elderly and Disability Exemption

To receive this exemption, the housing must be owned and operated by a nonprofit organization.  This exemption is good until the final payment due date of the original low-income housing development mortgage or until the mortgage has been extended or paid in full.  If the mortgage is refinanced, the property is still eligible for exemption until the final due date of the original mortgage or until the refinanced mortgage is paid in full or expires, whichever happens first.  In this case, "elderly" means 62 years old and "person with physical or mental disabilities" is a person who is unable to acquire substantial gainful employment.

Speculative Shell Buildings Exemption

This exemption can be enacted by a city council or county board of supervisors as a result of new construction, rebuilding or renovating speculative shell buildings owned by community development organizations, for-profit entities or non-profit organizations.  The value and duration of the exemption are laid out the ordinance establishing the exemption.  The exemption applies to all qualifying property in that jurisdiction.

Pollution Control Property Exemption and Recycling Property Exemption

To be eligible for these exemptions, a taxpayer must certify with the Iowa DNR that the primary use of the property is to control or reduce air or water pollution, to enhance the quality of air or water in the state, or for recycling.

Industrial Property Exemption and Cattle Facilities Exemption

A partial exemption can be granted by a city council or county board of supervisors for value added to industrial real estate due to new construction of industrial real estate, research-service facilities, warehouses, distribution centers, and the acquisition of, or improvement to, industrial machinery, equipment and computers.  The ordinance may include a partial exemption from taxation of actual value added to owner-operated cattle facilities by either new construction or the retrofitting of existing facilities.  This exemption is effective for five years.

Wind Energy Conversion Property Exemption

This exemption is also set up by a city council or county board of supervisors.  The Code of Iowa includes the valuation schedule to be followed by the council or board.  If the ordinance is repealed, the special valuation continues on through the 19^th assessment year after the first assessment. Public utility property can also qualify.

Methane Gas Conversion Property Exemption

Any property that is either used in conjunction with a publicly owned sanitary landfill to collect methane and other gases produced due to waste decomposition and convert the gas to energy is exempt from taxation.  Any property that is used to collect waste that would otherwise be collected by, or deposited with, a publicly owned landfill in order to decompose the waste to produce methane or other gases to be converted to energy.

Value-Added Exemption

As part of the Department of Economic Development's High Quality Job Creation Program, a community may exempt all or part of a property's actual value added by improvements to the property directly related to new jobs.  This exemption can last no longer than 20 years.

Forest and Fruit Tree Reservations Exemption

Land two acres or more in size containing a permanent forest qualifies for this exemption as does land between one and ten acres which contains fruit trees.  

A forest reservation must contain at least 200 growing trees per acre.  If a building is present on the land, one acre is excluded from the total area.  If more than ¹/₅ of the total number of trees are removed from the land in any one year, the land no longer qualifies.  The exception to this rule is if the trees die naturally.

A fruit tree reservation must contain at least 40 apple trees or 70 other fruit trees per acre.  A fruit tree reservation exemption can only be granted for eight years from the time the trees were first planted.

These reservations cannot be used for financial gain  Livestock are not permitted on these reservations

If a property no longer meets the requirements for the exemption, the property will be assessed for taxation.  The property is eligible for having taxes levied against the assessment made as of January 1 of the year in which it no longer qualifies.  The property is also subject to taxes that would have been levied against it for the preceding five years.  The recapture tax will not be levied if it was owned for at least ten years by the owner or their immediate family.

Impoundment Structures Exemption

An impoundment structure is a dam, earthfill, or other structure used to create a reservoir or pond which can hold at least 18 acre-feet of water or sediment at the time of its construction.  Impoundment structures and the underlying land are exempt from property taxes.

Natural Conservation or Wildlife Areas Exemption

In order to qualify for this exemption, property must be at least two acres in area; consist of recreation lakes, forest cover, river and stream, river and stream banks, or open prairie; be used to prevent soil erosion and/or wildlife habitat.  The property must be certified for exemption by the Soil and Water Conservation Commission and approved for exemption by the Board of Supervisors.

If property consists of restored open prairie, the Board of Supervisors must certify that the property adequately consists of native species and that all primary and secondary noxious weeds are controlled to prevent their spread by wind or water.

Native Prairie and Wetlands Exemption and Wildlife Habitat Exemption

The Department of Natural Resources certifies if property is eligible for this exemption.  The property can not exceed two acres in size.

If property consists of restored open prairie, the Board of Supervisors must certify that the property adequately consists of native species and that all primary and secondary noxious weeds are controlled to prevent their spread by wind or water.

Enterprise Zone Exemption

This exemption can be approved by cities and counties for all or part of the value added by improvements to business property located in economic development enterprise zones.  The Department of Economic Development approves the establishment of such zones and determines if a business within the zone is eligible for the benefit.  This exemption lasts for ten years.

Barn Preservation Exemptions

The increase in value due to improvements made to a farm building to preserve it as a barn is exempt from taxes.  To qualify, the building must have been built and used as a barn before 1937.  This exemption continues until the structure is no longer used as a barn.

Schoolhouse Preservation Exemption

The schoolhouse preservation exemption is the same as the barn preservation exemption as described above but applies to one-room schoolhouses.  The building is exempt from taxes even though it's no longer used for education.

Indian Housing Authority Property Exemption

Property owned by an Indian housing authority  is exempt if an agreement has been made with the local governing body.  Indian housing authorities are defined by federal law.

Port Authority Property Exemption

Port authority property created as stated in Iowa Code section 28J.2 is exempt from taxation when it is used designated for public use and not for profit..

Other Eligible Property

The following property is also eligible for exemption  under Iowa Code Chapter 427.

• Federal property
• State property
• Municipal property
• Iowa National Guard property
• Public grounds
• Cemeteries
• Property of cemetery associations
• Fire company buildings and grounds
• War veteran association property
• Library buildings and grounds if they are nonprofit and for public use
• Art gallery buildings and grounds if they are nonprofit and for public use
• Religious property
• Property of literary societies
• Charity society property
• Property belonging to educational institutions
• Homes for soldiers
• Agricultural produce
• Government land
• Public airports
• Rural water nonprofit corporation property
• Property for municipal water utilities
• Dwellings owned by community housing organizations
• Railway right-of-way if an option to purchase is held by the Iowa Finance Authority
• Public TV station property
• Mobile home park storm shelters
• Property used by web search portal site business

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