Land Use & Zoning

Iowa's agricultural exemption for property taxes applies to land that is:

AAny rural property regardless of use
BActively used for agricultural production, assessed based on productivity rather than market value✓ Correct
CLand owned by Iowa State University
DAny property over 10 acres in a rural county

Explanation

Iowa agricultural land that is actively used for farming is assessed based on its agricultural productivity (earning capacity) rather than market value. This use-value assessment provides tax relief to Iowa farmers and preserves agricultural land by reducing the tax burden associated with rising market values.

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