HOUSE FILE 319

BY  WAGNER

A BILL FOR

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

   Section 1.  Section 427.1, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  38.Residential preservation.
   a.  A single-family residence used primarily for human habitation that was constructed more than one hundred years prior to the date upon which the application for the exemption is filed. To be eligible for the exemption, not less than fifty percent of the internal and external structure and features of the residence shall be the result of the original construction of the residence. The exemption shall not apply to the land upon which the residence is located. 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 residence 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 residence continues to meet the requirements of this subsection. The taxpayer shall notify the assessing authority when the structure 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 single-family residences used primarily for human habitation that were constructed more than 100 years prior to the date upon which the application for the exemption is filed. To be eligible for the exemption under the bill, not less than 50 percent of the internal and external structure and features of the residence shall be the result of the original construction of the residence. The exemption does not apply to the land upon which the residence is located. 
   The exemption applies to the assessment year beginning after the date upon which the application for the exemption is filed. Applications for the 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 residence for which the exemption is requested. Once the exemption is granted, the exemption shall continue to be granted for subsequent assessment years without further filing of an application as long as the residence continues to meet the requirements for the exemption. The bill requires the taxpayer to notify the assessing authority when the structure 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.