House File 653 - Reprinted HOUSE FILE 653 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 217) (As Amended and Passed by the House May 6, 2015 ) A BILL FOR An Act relating to state taxation by modifying the disabled 1 veteran homestead tax credit, property tax exemptions 2 authorized for certain associations, institutions, and 3 societies, the definition of livestock for purposes of the 4 sales and use tax, exempting certain all-terrain vehicles 5 and off-road utility vehicles from the sales and use tax, 6 and including effective date and retroactive applicability 7 provisions. 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9 HF 653 (3) 86 mm/sc/md

H.F. 653 DIVISION I 1 SALES AND USE TAXES 2 Section 1. Section 423.1, subsection 25, Code 2015, is 3 amended to read as follows: 4 25. “Livestock” includes but is not limited to an animal 5 classified as an ostrich, rhea, emu, bison, or farm deer , or 6 preserve whitetail as defined in section 484C.1 . 7 Sec. 2. Section 423.3, subsection 8, paragraph d, Code 2015, 8 is amended to read as follows: 9 d. (1) For purposes of this subsection , the following 10 items are exempt under paragraph “a” when used primarily in 11 agricultural production: 12 (a) A diesel fuel trailer, regardless of the vehicle to 13 which it is to be attached. 14 (b) A seed tender, regardless of the vehicle to which it is 15 to be attached. 16 (c) An all-terrain vehicle. 17 (d) An off-road utility vehicle. 18 (2) For purposes of this paragraph: 19 (a) “All-terrain vehicle” means the same as defined in 20 section 321I.1. 21 (a) (b) “Fuel trailer” means a trailer that holds dyed 22 diesel fuel or diesel exhaust fluid and that is used to 23 transport such fuel or fluid to a self-propelled implement of 24 husbandry. 25 (c) “Off-road utility vehicle” means the same as defined in 26 section 321I.1. 27 (b) (d) “Seed tender” means a trailer that holds seed and 28 that is used to transport seed to an implement of husbandry and 29 load seed into an implement of husbandry. 30 Sec. 3. REFUNDS. Refunds of taxes, interest, or penalties 31 that arise from claims resulting from the amendment to section 32 423.1, subsection 25, in this division of this Act, for sales 33 occurring between July 1, 2005, and the effective date of the 34 section amending section 423.1, subsection 25, in this division 35 -1- HF 653 (3) 86 mm/sc/md 1/ 4

H.F. 653 of this Act, shall not be allowed, notwithstanding any other 1 provision of law to the contrary. 2 Sec. 4. EFFECTIVE UPON ENACTMENT. The section of this 3 division of this Act amending section 423.1, subsection 4 25, being deemed of immediate importance, takes effect upon 5 enactment. 6 Sec. 5. RETROACTIVE APPLICABILITY. The section of this 7 division of this Act amending section 423.1, subsection 25, 8 applies retroactively to July 1, 2005. 9 DIVISION II 10 DISABLED VETERAN HOMESTEAD 11 PROPERTY TAX CREDIT APPLICATION 12 Sec. 6. 2015 Iowa Acts, House File 166, is amended by adding 13 the following new section: 14 NEW SECTION . SEC. 6. EXCEPTION TO APPLICATION FILING 15 DEADLINE. Notwithstanding the filing deadline under section 16 425.2, claims for the homestead credit authorized under section 17 425.15, as amended in this Act, filed after July 1, 2014, but 18 before July 1, 2015, shall be considered to be a claim properly 19 filed for taxes due and payable in the fiscal year beginning 20 July 1, 2015. 21 Sec. 7. EFFECTIVE UPON ENACTMENT. This division of this 22 Act, being deemed of immediate importance, takes effect upon 23 enactment. 24 Sec. 8. RETROACTIVE APPLICABILITY. This division of this 25 Act applies retroactively to March 5, 2015. 26 DIVISION III 27 PROPERTY TAX EXEMPTION FOR 28 CERTAIN INSTITUTIONS AND SOCIETIES 29 Sec. 9. Section 427.1, subsections 6 and 8, Code 2015, are 30 amended to read as follows: 31 6. Property of cemetery associations. 32 a. Burial grounds, mausoleums, buildings , and equipment 33 owned and operated by cemetery associations and used 34 exclusively for the maintenance and care of the cemeteries 35 -2- HF 653 (3) 86 mm/sc/md 2/ 4

H.F. 653 devoted to interment of human bodies and human remains. The 1 exemption granted by this subsection shall not apply to any 2 property used for the practice of mortuary science. 3 b. Agricultural land owned by a cemetery association and 4 leased to another person for agricultural use if the revenues 5 resulting from the lease are used by the cemetery association 6 exclusively for the maintenance and care of cemeteries owned 7 by the cemetery association and devoted to interment of human 8 bodies and human remains. 9 8. Property of religious, literary, and charitable societies. 10 a. All grounds and buildings used or under construction by 11 literary, scientific, charitable, benevolent, agricultural, 12 and religious institutions and societies solely for their 13 appropriate objects, not exceeding three hundred twenty 14 acres in extent and not leased or otherwise used or under 15 construction with a view to pecuniary profit. However, 16 an organization mentioned in this subsection whose primary 17 objective is to preserve land in its natural state may own 18 or lease land not exceeding three hundred twenty acres in 19 each county for its appropriate objects. For assessment 20 years beginning on or after January 1, 2016, the exemption 21 granted by this subsection shall also apply to grounds owned 22 by a religious institution or society, not exceeding a total 23 of fifty acres, if all monetary and in-kind profits of the 24 religious institution or society resulting from use or lease of 25 the grounds are used exclusively by the religious institution 26 or society for the appropriate objects of the institution or 27 society. 28 b. All deeds or leases by which such property is held shall 29 be filed for record before the property herein described shall 30 be omitted from the assessment. All such property shall be 31 listed upon the tax rolls of the district or districts in which 32 it is located and shall have ascribed to it an actual fair 33 market value and an assessed or taxable value, as contemplated 34 by section 441.21 , whether such property be subject to a levy 35 -3- HF 653 (3) 86 mm/sc/md 3/ 4