HOUSE FILE 2058

BY  DRAKE

A BILL FOR

An Act establishing a property tax exemption for certain care facilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427.1, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  38.  Care facilities.
   a.  Property owned solely by a nonprofit organization and operated on a nonprofit basis as a residential care facility or nursing facility under chapter 135C, an elder group home under chapter 231B, an assisted living program under chapter 231C, an adult day services program under chapter 231D, or a retirement facility under chapter 523D. The exemption shall apply to all buildings, structures, and land which are used for such purposes. The exemption shall apply to the assessment year beginning after the application for the exemption is filed.
   b.  Applications for exemption shall be filed with the assessing authority not later than February 1 of the first year for which the exemption is requested, on forms provided by the department of revenue. The application shall describe and locate the specific property for which the exemption is requested.
   c.  Once the exemption is granted, the exemption shall continue to be granted for subsequent assessment years without further filing of applications as long as the property continues to meet the requirements of this subsection. The taxpayer shall notify the assessing authority when the property ceases to meet the requirements of this subsection.
    Sec. 2.  IMPLEMENTATION.  Section 25B.7 shall not apply to the provisions of this Act.
EXPLANATION
   This bill establishes a property tax exemption for property owned solely by a nonprofit organization and operated on a nonprofit basis as a residential care facility or nursing facility under Code chapter 135C, an elder group home under Code chapter 231B, an assisted living program under Code chapter 231C, an adult day services program under Code chapter 231D, or a retirement facility under Code chapter 523D. The exemption applies to all buildings, structures, and land which are used for such purposes. Once the exemption is granted, the exemption continues to be granted for subsequent assessment years without further filing of applications as long as the property continues to meet the requirements of the exemption. The taxpayer is required to notify the assessing authority when the property ceases to meet the requirements for the exemption.
   The bill provides that the provisions in Code section 25B.7, relating to the obligation of the state to reimburse local jurisdictions for property tax credits and exemptions, does not apply to the exemption in the bill.