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