Senate File 278 - Introduced



                                       SENATE FILE       
                                       BY  KETTERING


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

                                      A BILL FOR

  1 An Act relating to the exemption from property taxation of
  2    certain low=rent housing and including effective date and
  3    applicability date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2855SS 81
  6 sc/sh/8

PAG LIN



  1  1    Section 1.  Section 427.1, subsection 21, Code 2005, is
  1  2 amended to read as follows:
  1  3    21.  LOW=RENT HOUSING.  The property owned and operated by
  1  4 a nonprofit organization providing low=rent housing for
  1  5 persons who are elderly and persons with physical and mental
  1  6 disabilities.  The exemption granted under the provisions of
  1  7 this subsection shall apply only until the terms final payment
  1  8 due date of the original low=rent housing development mortgage
  1  9 or until the original low=rent housing development mortgage is
  1 10 paid in full or expires, whichever is sooner, subject to the
  1 11 provisions of subsection 14.  However, if the original low=
  1 12 rent housing development mortgage is refinanced, the exemption
  1 13 shall apply only until the date that would have been the final
  1 14 payment due date under the terms of the original low=rent
  1 15 housing development mortgage or until the refinanced mortgage
  1 16 is paid in full or expires, whichever is sooner, subject to
  1 17 the provisions of subsection 14.
  1 18    Sec. 2.  PROPERTY TAX EXEMPTION STATUS.  This Act is not
  1 19 considered a property tax exemption enacted on or after
  1 20 January 1, 1997, for purposes of section 25B.7.
  1 21    Sec. 3.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  1 22 being deemed of immediate importance, takes effect upon
  1 23 enactment and applies retroactively to January 1, 2005, for
  1 24 assessment years beginning on or after that date.
  1 25                           EXPLANATION
  1 26    This bill makes changes relating to the property tax
  1 27 exemption for property owned and operated by a nonprofit
  1 28 organization providing low=rent housing for the elderly and
  1 29 for persons with physical and mental disabilities.  Current
  1 30 law provides that the property is eligible for exemption until
  1 31 the original mortgage is paid in full or expires.
  1 32    The bill provides that the property is eligible for
  1 33 exemption until the final payment due date of the original
  1 34 mortgage or until the original mortgage is paid in full or
  1 35 expires, whichever is sooner.  The bill further provides that
  2  1 if the mortgage is refinanced, the property is eligible for
  2  2 exemption until the date that would have been the final
  2  3 payment due date under the terms of the original mortgage or
  2  4 until the refinanced mortgage is paid in full or expires,
  2  5 whichever is sooner.
  2  6    The bill is not considered a property tax exemption enacted
  2  7 on or after January 1, 1997, for purposes of the state funding
  2  8 requirement under Code section 25B.7.
  2  9    The bill takes effect upon enactment and applies
  2 10 retroactively to assessment years beginning on or after
  2 11 January 1, 2005.
  2 12 LSB 2855SS 81
  2 13 sc:nh/sh/8