HF 2422 (LSB 6302HV (1) 88)

HOUSE FILE 2422

BY  COMMITTEE ON VETERANS AFFAIRS

(SUCCESSOR TO HSB 637)

A BILL FOR

An Act relating to eligibility for a property tax exemption for certain property of veterans associations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427.1, subsection 5, Code 2020, is amended to read as follows:
   5.  Property of associations of war veterans.
   a.  The property of any organization composed wholly of veterans of any war, when such property is, except as otherwise provided in this subsection or subsection 14, devoted entirely to its own use and not held for pecuniary profit.
   b.  The operation of bingo games on property of such organization shall not adversely affect the exemption of that property under this subsection if all proceeds, in excess of expenses, are used for the legitimate purposes of the organization.
   c.  The occasional or irregular lease or rental of all or a portion of the property of such organization shall not adversely affect the exemption of that property under this subsection if the proceeds from such lease or rental do not exceed two hundred fifty dollars per lease or rental, and the proceeds, in excess of expenses, are used for the legitimate purposes of the organization. In addition, the occasional or irregular lease or rental shall be considered a use for the appropriate objects of the organization for purposes of subsection 14.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill concerns the property tax exemption for certain property of an organization composed of veterans. The bill strikes the requirement that the exemption is limited only to those organizations wholly composed of veterans of any war and instead allows the exemption for organizations composed of veterans.