Text: SF00355 Text: SF00357 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 403A.2, Code 1999, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 12A. "Nonprofit housing corporation" 1 4 means an organization that has received tax-exempt status 1 5 under section 501(c)(3) of the Internal Revenue Code and 1 6 rental income of the organization from the lease of 1 7 residential property is not taxed as unrelated business income 1 8 under section 422.33, subsection 1A. 1 9 Sec. 2. Section 403A.9, Code 1999, is amended to read as 1 10 follows: 1 11 403A.9CO-OPERATIONCOOPERATION BETWEEN MUNICIPALITIES AND 1 12 NONPROFIT HOUSING CORPORATIONS. 1 13Any two or more municipalitiesA municipality may join or 1 14co-operatecooperate withoneanother municipality or a 1 15 nonprofit housing corporation in the exercise of any or all of 1 16 the powers conferredherebyin this chapter for the purpose of 1 17 financing, planning, undertaking, constructing, purchasing, or 1 18 operating a housing project or projects. 1 19 Sec. 3. Section 403A.10, Code 1999, is amended to read as 1 20 follows: 1 21 403A.10 TAX EXEMPTION AND PAYMENTS IN LIEU OF TAXES. 1 22 The property acquired or held pursuant to this chapter is 1 23 declared to be public property used exclusively for essential 1 24 city, or municipal public and governmental purposes and such 1 25 property is hereby declared to be exempt from all taxes and 1 26 special assessments of the state or of any state public body. 1 27 In lieu of taxes on such property a municipality, together 1 28 with any cooperating municipality or nonprofit housing 1 29 corporation, may agree to make payments to the state or a 1 30 state public body(including itself), including the 1 31 municipality, as it finds consistent with the maintenance of 1 32 the low-rent character of housing projects and the achievement 1 33 of the purposes of this chapter. 1 34 Sec. 4. Section 403A.27, Code 1999, is amended to read as 1 35 follows: 2 1 403A.27 PERCENTAGE OF RENT AS TAXES. 2 2Any provision of this chapter notwithstanding, noExcept as 2 3 to projects where the municipality, or the municipality and 2 4 any cooperating municipality or nonprofit housing corporation, 2 5 has entered into an agreement in lieu of taxes as provided in 2 6 section 403A.10, and except as to the use of dwelling units in 2 7 an existing structure leased from a private owner other than a 2 8 cooperating nonprofit housing corporation, a housing project 2 9 shall not be approved unless as a condition at leasttenthree 2 10 but not more than five percent of all rents and supplemental 2 11 rental aid shall be paid annually as taxes to the office of 2 12 the treasurer in the respective county in which said project 2 13 is located, except as to the use of dwelling units in existing2 14structures leased from private owners. 2 15 Sec. 5. Section 427.1, subsection 21, Code 1999, is 2 16 amended to read as follows: 2 17 21. LOW-RENT HOUSING. The property owned and operated by 2 18 a nonprofit organization that has received tax-exempt status 2 19 under section 501(c)(3) of the Internal Revenue Code and 2 20 rental income from the property is not taxed as unrelated 2 21 business income under section 422.33, subsection 1A, providing 2 22 low-rent housing for persons who are elderlyand, very low- 2 23 income families as defined in section 403A.2, subsection 6, 2 24 paragraph "c", or persons with physical and mental 2 25 disabilities. The exemption granted under the provisions of 2 26 this subsection shall apply only until theterms of the2 27originalconstruction, purchase money, or rehabilitation or 2 28 refunding low-rent housing development mortgage, from any 2 29 source, is paid in full or expires, subject to the provisions 2 30 of subsection 14. The department of revenue and finance shall 2 31 adopt rules pursuant to chapter 17A accommodating increases in 2 32 the income of tenants similar to rules in effect for low- 2 33 income housing tax credits under section 42(a) of the Internal 2 34 Revenue Code. 2 35 Sec. 6. Section 441.21, subsection 2, unnumbered paragraph 3 1 2, Code 1999, is amended to read as follows: 3 2 In the event market value of the property being assessed 3 3 cannot be readily established in the foregoing manner, then 3 4 the assessor may determine the value of the property using the 3 5 other uniform and recognized appraisal methods including its 3 6 productive and earning capacity, if any, industrial 3 7 conditions, its cost, physical and functional depreciation and 3 8 obsolescence and replacement cost, and all other factors, 3 9 including governmental restriction as to use, which would 3 10 assist in determining the fair and reasonable market value of 3 11 the property but the actual value shall not be determined by 3 12 use of only one such factor. The following shall not be taken 3 13 into consideration: Special value or use value of the 3 14 property to its present owner, and the good will or value of a 3 15 business which uses the property as distinguished from the 3 16 value of the property as property. Upon adoption of uniform 3 17 rules by the revenue department or succeeding authority 3 18 covering assessments and valuations of such properties, said 3 19 valuation on such properties shall be determined in accordance 3 20 therewith for assessment purposes to assure uniformity, but 3 21 such rules shall not be inconsistent with or change the 3 22 foregoing means of determining the actual, market, taxable and 3 23 assessed values. 3 24 Sec. 7. EFFECTIVE DATE. This Act, being deemed of 3 25 immediate importance, takes effect upon enactment. 3 26 EXPLANATION 3 27 This bill adds provisions to Code chapter 403A, relating to 3 28 municipal housing projects, regarding nonprofit housing 3 29 corporations. The bill provides that a municipality may join 3 30 or cooperate with another municipality or a nonprofit housing 3 31 corporation in the exercise of any or all of the activities 3 32 provided in Code chapter 403A for the purpose of financing, 3 33 planning, undertaking, constructing, purchasing, or operating 3 34 a housing project or projects. 3 35 The bill provides that a property acquired or held pursuant 4 1 to Code chapter 403A is exempt from all taxes and special 4 2 assessments of the state or of any state public body and that, 4 3 in lieu of taxes, a municipality, together with any 4 4 cooperating municipality or nonprofit housing corporation, may 4 5 agree to make payments to the state or a state public body. 4 6 The bill provides that, except where there is an agreement in 4 7 lieu of taxes and except where dwelling units are used in an 4 8 existing structure leased from a private owner other than a 4 9 cooperating nonprofit housing corporation, a housing project 4 10 shall not be approved unless at least 3, but not more than 5, 4 11 percent of all rents and supplemental rental aid shall be paid 4 12 annually as taxes to the county treasurer. 4 13 The bill includes, under property tax exemptions in Code 4 14 chapter 427, property owned and operated by a nonprofit 4 15 housing corporation defined in Code chapter 403A. The bill 4 16 provides that the department of revenue and finance shall 4 17 adopt rules accommodating increases in the income of tenants 4 18 similar to rules in effect for low-income housing tax credits 4 19 in section 42(a) of the Internal Revenue Code. 4 20 The bill provides that, among other considerations, 4 21 governmental restrictions as to use of property should be 4 22 considered by an assessor in the determination of the value of 4 23 property when the market value of property being assessed 4 24 cannot be readily established. 4 25 The bill takes effect upon enactment. 4 26 LSB 2472SS 78 4 27 tm/cf/24
Text: SF00355 Text: SF00357 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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