HF 2344 (LSB 5872YH (3) 88)

HOUSE FILE 2344

BY  THEDE, SHIPLEY, HUNTER, and KURTZ

A BILL FOR

An Act relating to filing requirements for property tax exemptions for certain societies and organizations and including effective date, applicability, and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
PROPERTY TAX EXEMPTIONS AND ABATEMENT

    Section 1.  Section 427.1, subsection 14, unnumbered paragraph 1, Code 2020, is amended to read as follows:
   A society or organization claiming an exemption under subsection 5, 8, or 33 shall file with the assessor not later than February 1 a statement upon forms to be prescribed by the director of revenue, describing the nature of the property upon which the exemption is claimed and setting out in detail any uses and income from the property derived from the rentals, leases, or other uses of the property not solely for the appropriate objects of the society or organization. Upon the filing and allowance of the claim, the claim shall be allowed on the property for successive years without further filing as long as the property is used for the purposes specified in the original claim for exemption. When the property is sold or transferred, the county recorder shall provide notice of the transfer to the assessor. The notice shall describe the property transferred and the name of the person to whom title to the property is transferred.  The county recorder shall also notify both the transferor and the transferee of the termination of the exemption and the filing requirements to continue the exemption on the property transferred.
    Sec. 2.  Section 427.3, Code 2020, is amended to read as follows:
   427.3  Abatement of taxes of certain exempt entities.
   The Upon filing of a request for abatement, the board of supervisors may shall abate the taxes levied against property acquired by gift or purchase by a person or entity if the property acquired by gift or purchase was transferred to the person or entity after the deadline for filing for property tax exemption in the year in which the property was transferred and the property acquired by gift or purchase would have been exempt under section 427.1, subsection 7, 8, or 9, if the person or entity had been able to file for exemption in a timely manner.
    Sec. 3.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  APPLICABILITY.  This division of this Act applies to the transfer of property occurring on or after the effective date of the this division of this Act.
DIVISION II
RELIGIOUS INSTITUTION PROPERTY TAX EXEMPTION

    Sec. 5.  RELIGIOUS INSTITUTION PROPERTY TAX EXEMPTION —— FILING.  Notwithstanding the requirement for the filing of a statement claiming the property tax exemption by February 1 as provided in section 427.1, subsection 14, for the assessment years beginning January 1, 2018, and January 1, 2019, the statement claiming the exemption under section 427.1, subsection 8, for property owned by a religious institution that was acquired by the religious institution from another religious institution during the calendar year 2015, and that is located in a city having a population of at least ninety thousand but not more than one hundred thousand according to the 2010 federal decennial census, shall be filed not later than thirty days following the effective date of this division of this Act. The exemption authorized under this section for assessment years beginning January 1, 2018, and January 1, 2019, shall only apply to tax amounts levied that have not been subject to a tax sale under chapter 446 or that have not been paid by a tax sale purchaser under section 446.32.
    Sec. 6.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 7.  RETROACTIVE APPLICABILITY.  This division of this Act applies retroactively to January 1, 2018, for assessment years beginning on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to property tax exemption filing requirements for certain societies and organizations.
   Code section 427.1 requires certain societies or organizations claiming a property tax exemption to file a statement with the assessor not later than February 1. Upon the filing and allowance of the claim, the claim shall be allowed on the property for successive years without further filing as long as the property is used for the purposes specified in the original claim for exemption. When a property receiving a property tax exemption is transferred, division I of the bill requires the county recorder to notify both the transferor and the transferee of the termination of the exemption and the filing requirements to continue the exemption on the property transferred.
   Code section 427.3 authorizes a county board of supervisors to abate the taxes levied against property acquired by gift or purchase by a person or entity if the property acquired by gift or purchase was transferred to the person or entity after the deadline for filing for property tax exemption in the year in which the property was transferred and the property acquired by gift or purchase would have been exempt if the person or entity had been able to file for exemption in a timely manner. Division I of the bill requires the board of supervisors to abate the taxes under such circumstances upon the filing of a request for abatement.
   Division I of the bill takes effect upon enactment and applies to the transfer of property occurring on or after the effective date of division I of the bill.
   Division II of the bill provides that, notwithstanding the requirement for the filing of a statement claiming the property tax exemption by February 1, for the assessment years beginning January 1, 2018, and January 1, 2019, the statement claiming the exemption for property owned by a religious institution that was acquired by the religious institution from another religious institution during the calendar year 2015, and that is located in a city having a population of at least 90,000 but not more than 100,000 according to the 2010 federal decennial census, shall be filed not later than 30 days following the effective date of division II of the bill. Additionally, the exemption authorized under division II of the bill for assessment years beginning January 1, 2018, and January 1, 2019, shall only apply to tax amounts levied that have not been sold under Code chapter 446 or that have not been paid by a tax sale purchaser under Code section 446.32.
   Division II of the bill takes effect upon enactment and applies retroactively to January 1, 2018, for assessment years beginning on or after that date.