House Study Bill 189



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            WAYS AND MEANS BILL BY
                                            CHAIRPERSON VAN FOSSEN)


    Passed House, Date                Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the property taxation of nursing facilities
  2    and including effective and applicability date provisions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1961HC 81
  5 mg/sh/8

PAG LIN



  1  1    Section 1.  Section 427.1, subsection 14, unnumbered
  1  2 paragraph 2, Code 2005, is amended to read as follows:
  1  3    The assessor, in arriving at the valuation of any property
  1  4 of the society or organization, shall take into consideration
  1  5 any uses of the property not for the appropriate objects of
  1  6 the organization and shall assess in the same manner as other
  1  7 property, all or any portion of the property involved which is
  1  8 leased or rented and is used regularly for commercial purposes
  1  9 for a profit to a party or individual.  If a portion of the
  1 10 property is used regularly for commercial purposes, an
  1 11 exemption shall not be allowed upon property so used and the
  1 12 exemption granted shall be in the proportion of the value of
  1 13 the property used solely for the appropriate objects of the
  1 14 organization, to the entire value of the property.  However,
  1 15 the board of trustees or the board of directors of a hospital,
  1 16 as defined in section 135B.1, may permit use of a portion of
  1 17 the hospital for commercial purposes, and the hospital is
  1 18 entitled to full exemption for that portion used for nonprofit
  1 19 health=related purposes, upon compliance with the filing
  1 20 requirements of this subsection.  The property of a nursing
  1 21 facility, as defined in section 135C.1, which is exempt from
  1 22 federal income tax under section 501(c)(3) of the Internal
  1 23 Revenue Code, is entitled to the full exemption of the
  1 24 property regardless of the proportion of residents of the
  1 25 facility for whom the cost of care is privately paid or paid
  1 26 under Title XIX of the federal Social Security Act, upon
  1 27 compliance with the filing requirements of this subsection.
  1 28    Sec. 2.  EFFECTIVE AND APPLICABILITY DATE.  This Act, being
  1 29 deemed of immediate importance, takes effect upon enactment
  1 30 and applies to property taxes due and payable in fiscal years
  1 31 beginning on or after July 1, 2005.
  1 32                           EXPLANATION
  1 33    This bill provides that the property of a nursing facility
  1 34 that is exempt from federal income tax under section 501(c)(3)
  1 35 of the Internal Revenue Code is totally exempt from property
  2  1 tax regardless of the proportion of private pay and Title XIX
  2  2 of the federal Social Security Act residents of the facility.
  2  3    The bill takes effect upon enactment and applies to
  2  4 property taxes due and payable in fiscal years beginning on or
  2  5 after July 1, 2005.
  2  6 LSB 1961HC 81
  2  7 mg:rj/sh/8