Senate File 408 - Introduced SENATE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 278) 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 2855SV 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 thetermsfinal 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 2855SV 81 2 13 sc:nh/sh/8