House File 581 - Introduced
HOUSE FILE
BY S. OLSON
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to certain property of associations of war
2 veterans eligible for an exemption from property taxation,
3 providing a refund of property taxes in certain circumstances,
4 and including effective and retroactive applicability date
5 provisions.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 427.1, subsection 5, Code 2009, is
1 2 amended to read as follows:
1 3 5. PROPERTY OF ASSOCIATIONS OF WAR VETERANS.
1 4 a. The property of any organization composed wholly of
1 5 veterans of any war, when such property is devoted entirely to
1 6 its own use and not held for pecuniary profit.
1 7 b. The exemption provided under this subsection shall
1 8 apply to property that is owned by an organization of war
1 9 veterans and leased for use as a community center if all lease
1 10 proceeds, in excess of expenses, are used for the legitimate
1 11 purposes of the organization. The lessee of exempt property
1 12 under this paragraph may sublet the property, or portions
1 13 thereof, to any fraternal, business, or social organization
1 14 for special events without affecting the exemption provided
1 15 under this paragraph.
1 16 c. The operation of bingo games on property of such
1 17 organization shall not adversely affect the exemption of that
1 18 property under this subsection if all proceeds, in excess of
1 19 expenses, are used for the legitimate purposes of the
1 20 organization.
1 21 Sec. 2. REFUND OF PROPERTY TAXES AND APPLICATION
1 22 DEADLINES. Notwithstanding the deadline for filing a claim
1 23 for property tax exemption for property described in section
1 24 427.1, subsection 5, paragraph "b", as enacted in this Act,
1 25 and notwithstanding any other provision to the contrary, the
1 26 board of supervisors of a county having a population of at
1 27 least fifty thousand but not more than fifty=one thousand,
1 28 according to the 2000 certified federal census, shall refund
1 29 the property taxes paid, with all interest, penalties, fees,
1 30 and costs that were due and payable in the fiscal beginning
1 31 July 1, 2008. To receive the refund provided for in this
1 32 section, the taxpayer shall apply to the county board of
1 33 supervisors by October 1, 2009, and provide appropriate
1 34 information establishing that the property for which the
1 35 refund is sought was owned and used for appropriate purposes
2 1 during the fiscal year beginning July 1, 2008.
2 2 Sec. 3. EXEMPTION FROM PROPERTY TAXES. Notwithstanding
2 3 the deadline for filing a claim for property tax exemption for
2 4 property described in section 427.1, subsection 5, paragraph
2 5 "b", as enacted in this Act, an exemption for property taxes
2 6 due and payable in the fiscal year beginning July 1, 2009,
2 7 shall be valid if the taxpayer applies to the board of
2 8 supervisors by August 1, 2009. If a claim for exemption is
2 9 granted under this section, it shall be considered a timely
2 10 filed claim for purposes of section 427.1, subsection 14, and
2 11 the exemption shall be allowed on the property for successive
2 12 years without further filing as long as the property is used
2 13 for the purposes specified in the original claim for
2 14 exemption.
2 15 Sec. 4. APPLICABILITY. Section 25B.7 does not apply to
2 16 the provisions of this Act.
2 17 Sec. 5. EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
2 18 This Act, being deemed of immediate importance, takes effect
2 19 upon enactment and applies retroactively to property taxes due
2 20 and payable in fiscal years beginning on or after July 1,
2 21 2008.
2 22 EXPLANATION
2 23 Current law provides an exemption from property tax for
2 24 property owned by an association of war veterans when such
2 25 property is devoted entirely to its own use and not held for
2 26 pecuniary profit. This bill allows the exemption on property
2 27 owned by an association of war veterans that is leased for use
2 28 as a community center. The bill also allows the lessee of
2 29 exempt property to sublet the property, or portions thereof,
2 30 to any fraternal, business, or social organization for special
2 31 events without affecting the exemption.
2 32 The bill requires the board of supervisors of a county with
2 33 a population of more than 50,000 but not more than 51,000,
2 34 upon receipt of an application from the taxpayer, to refund
2 35 the property taxes paid in FY 2008=2009 on property that met
3 1 the requirements of the bill during that fiscal year. The
3 2 bill establishes a deadline for exemption claims on property
3 3 taxes due and payable in FY 2009=2010.
3 4 Code section 25B.7 does not apply to the provisions the
3 5 bill.
3 6 The bill takes effect upon enactment and applies
3 7 retroactively to property taxes due and payable in fiscal
3 8 years beginning on or after July 1, 2008.
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