Senate File 326 - 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 property taxation of a residential 2 dwelling of a religious institution and including effective 3 and applicability date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1034XS 81 6 mg/pj/5 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. A religious institution may 1 21 allow for the rental of a residential dwelling and the land 1 22 upon which it stands, not to exceed one acre, for nonreligious 1 23 purposes and receive the full exemption for that residence and 1 24 land if the residence and land are adjacent to the house of 1 25 worship of the religious institution and are located in an 1 26 unincorporated area. 1 27 Sec. 2. EFFECTIVE AND APPLICABILITY DATE. This Act, being 1 28 deemed of immediate importance, takes effect upon enactment 1 29 and applies to property taxes due and payable in fiscal years 1 30 beginning on or after July 1, 2005. 1 31 EXPLANATION 1 32 This bill allows a residential dwelling of a religious 1 33 institution to be rented for nonreligious purposes and still 1 34 be exempt from property tax if it is located in an 1 35 unincorporated area and is adjacent to the house of worship of 2 1 the religious institution. The land, up to one acre, upon 2 2 which the residence stands would also be exempt. 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 1034XS 81 2 7 mg:nh/pj/5.1