House File 173
HOUSE FILE
BY FALLON
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the assessing of a service charge in lieu of
2 property taxes for the providing of police and fire protection
3 by a city for real property which is totally or partially
4 exempt from property tax, including government=owned real
5 property, and property of certain nonprofit institutions and
6 societies, and providing an applicability date.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
8 TLSB 1984HH 80
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PAG LIN
1 1 Section 1. NEW SECTION. 384.12A POLICE AND FIRE
1 2 PROTECTION SERVICE CHARGE IN LIEU OF TAXES.
1 3 1. The city may assess a service charge for the providing
1 4 of police and fire protection in a fiscal year for real
1 5 property that is totally or partially tax=exempt, including
1 6 government=owned real property, and property under section
1 7 427.1, subsection 8, of nonprofit literary, scientific,
1 8 charitable, benevolent, agricultural, and religious
1 9 institutions and societies used solely for their appropriate
1 10 objects. However, those portions of real property owned by a
1 11 religious institution or organization which are used
1 12 exclusively for worship shall not be assessed the service
1 13 charge. The amount of the service charge equals the rate
1 14 determined under subsection 2 times the amount of the assessed
1 15 value of the real property that is not subject to the city's
1 16 property tax levy in the fiscal year. Service charges
1 17 collected pursuant to this section shall be deposited into the
1 18 city general fund for use in funding police and fire
1 19 protection. Service charges are payable at the time and in
1 20 the same manner as property taxes are paid.
1 21 2. The rate of the service charge, expressed in dollars
1 22 per one thousand dollars of valuation, for providing police
1 23 and fire protection equals the portion of the property tax
1 24 levy rate for the city general fund, as certified by the city,
1 25 which is budgeted to support police and fire protection
1 26 services.
1 27 3. If real property assessed a service charge under
1 28 subsection 1 for a fiscal year is subsequently subject to
1 29 property tax on the assessed value upon which the service
1 30 charge was determined, the amount of the property tax shall be
1 31 reduced by the amount of any service charge paid.
1 32 If a city receives payment in lieu of property taxes or
1 33 reimbursement for property taxes as a result of a tax
1 34 exemption, the amount of such payment or reimbursement shall
1 35 be a credit on the service charge assessed on that real
2 1 property.
2 2 4. For purposes of this section, real property subject to
2 3 the service charge under subsection 1 shall be valued and
2 4 assessed as required in section 427.1, subsection 18, and in
2 5 accordance with chapter 441, and the owner or other persons as
2 6 authorized by chapter 441 are entitled to protest any
2 7 assessment and take appeals in the same manner as any
2 8 taxpayer.
2 9 Sec. 2. Section 384.16, subsection 1, paragraphs b and c,
2 10 Code 2003, are amended to read as follows:
2 11 b. Income from sources other than property taxation,
2 12 including the amount to be raised from the police and fire
2 13 protection service charge under section 384.12A.
2 14 c. Amount to be raised by property taxation, and the
2 15 property tax rate expressed in dollars per one thousand
2 16 dollars assessed valuation, including the portion of the
2 17 general fund property tax levy that is budgeted to support
2 18 police and fire protection services.
2 19 Sec. 3. APPLICABILITY. This Act applies to the providing
2 20 of police and fire protection services for fiscal years
2 21 beginning on or after July 1, 2004.
2 22 EXPLANATION
2 23 This bill allows a city to assess a service charge for the
2 24 providing of police and fire protection services to real
2 25 property that is totally or partially exempt from taxation,
2 26 including government=owned real property and property of
2 27 nonprofit literary, scientific, charitable, benevolent,
2 28 agricultural, and religious institutions and societies. That
2 29 portion of church=owned property that is used solely for
2 30 religious worship is exempt from the service charge. The
2 31 amount of the charge is determined by multiplying the assessed
2 32 value of the real property that is not subject to property tax
2 33 by the portion of the property tax rate for the city general
2 34 fund as certified by the city which will be used to fund
2 35 police and fire protection.
3 1 The bill applies to fiscal years beginning on or after July
3 2 1, 2004.
3 3 LSB 1984HH 80
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