Senate File 323 - Introduced SENATE FILE BY CONNOLLY Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to certain property eligible for an exemption 2 from property taxation, providing a refund of property taxes 3 in certain circumstances, and including effective and 4 retroactive applicability date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1616XS 82 7 sc/es/88 PAG LIN 1 1 Section 1. Section 427.3, Code 2007, is amended to read as 1 2 follows: 1 3 427.3 ABATEMENT OF TAXES OF CERTAIN EXEMPT ENTITIES. 1 4 The board of supervisors may abate the taxes levied against 1 5 property acquired by gift or purchase by a person or entity if 1 6 the property acquired by gift or purchase was transferred to 1 7 the person or entity after the deadline for filing for 1 8 property tax exemption in the year in which the property was 1 9 transferred and the property acquired by gift or purchase 1 10 would have been exempt under section 427.1, subsection 7, 8, 1 11 or 9, if the person or entity had been able to file for 1 12 exemption in a timely manner. 1 13 Sec. 2. REFUND OF PROPERTY TAXES. Notwithstanding the 1 14 deadline for filing a claim for property tax exemption for 1 15 property described in section 427.1, subsection 8 or 9, and 1 16 notwithstanding any other provision to the contrary, the board 1 17 of supervisors of a county having a population based upon the 1 18 latest federal decennial census of more than eighty=eight 1 19 thousand but not more than ninety=five thousand shall refund 1 20 the property taxes paid, with all interest, penalties, fees, 1 21 and costs which were due and payable in the fiscal year 1 22 beginning July 1, 2002, and in the fiscal year beginning July 1 23 1, 2005, on the land and buildings of an institution that 1 24 purchased property and that did not receive a property tax 1 25 exemption for the property due to the inability or failure to 1 26 file for the exemption. To receive the refund provided for in 1 27 this section, the institution shall apply to the county board 1 28 of supervisors by October 1, 2007, and provide appropriate 1 29 information establishing that the land and buildings for which 1 30 the refund is sought were used by the institution for its 1 31 appropriate objectives during the fiscal year beginning July 1 32 1, 2002, and during the fiscal year beginning July 1, 2005. 1 33 The refund allowed under this section only applies to property 1 34 taxes, with all interest, penalties, fees, and costs, due and 1 35 payable in the fiscal year beginning July 1, 2002, and in the 2 1 fiscal year beginning July 1, 2005. 2 2 Sec. 3. IMMEDIATE EFFECTIVE DATE. Section 2 of this Act, 2 3 being deemed of immediate importance, takes effect upon 2 4 enactment and applies retroactively to property taxes due and 2 5 payable in the fiscal year beginning July 1, 2002, and in the 2 6 fiscal year beginning July 1, 2005. 2 7 EXPLANATION 2 8 Current law allows county boards of supervisors to abate 2 9 property taxes levied against property acquired by gift by a 2 10 library or art gallery or by a religious, literary, or 2 11 charitable institution or society or by an educational 2 12 institution if the transfer took place after the deadline for 2 13 filing for a tax exemption, if such entity would have been 2 14 entitled to the tax exemption on the donated property had 2 15 there been a timely filing. This bill includes property of 2 16 such institutions or societies acquired by purchase. 2 17 The bill also requires the board of supervisors of a county 2 18 with a population of more than 88,000 but not more than 95,000 2 19 to refund the property taxes paid by a religious, literary, or 2 20 charitable institution or society or by an educational 2 21 institution for FY 2002=2003 and FY 2005=2006 on property 2 22 purchased by the institution or society if the institution or 2 23 society was unable to or failed to file for a property tax 2 24 exemption in a timely manner for those fiscal years. To 2 25 receive the refund, the institution or society must apply for 2 26 the refund by October 1, 2007. This section of the bill takes 2 27 effect upon enactment and applies retroactively to property 2 28 taxes due and payable in the fiscal year beginning July 1, 2 29 2002, and in the fiscal year beginning July 1, 2005. 2 30 LSB 1616XS 82 2 31 sc:rj/es/88