Senate File 298 - Introduced SENATE FILE 298 BY JOCHUM (COMPANION TO HF 202 BY ISENHART) A BILL FOR An Act relating to the property tax exemption for property 1 owned by certain municipalities and the Iowa national guard 2 and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1457SS (1) 84 md/sc

S.F. 298 Section 1. Section 427.1, subsection 2, Code 2011, is 1 amended to read as follows: 2 2. Municipal and military property. 3 a. The property of a county, township, city, school 4 corporation, levee district, drainage district, or the Iowa 5 national guard, when devoted to public use and not held for 6 pecuniary profit, except property as provided in paragraph “e” . 7 b. The exemption under paragraph “a” shall not apply to any 8 of the following: 9 (1) Property of a municipally owned electric utility 10 held under joint ownership and property of an electric power 11 facility financed under chapter 28F or 476A that shall be 12 subject to taxation under chapter 437A and facilities . 13 (2) Facilities of a municipal utility that are used for the 14 provision of local exchange services pursuant to chapter 476 , 15 but only to the extent such facilities are used to provide such 16 services, which shall be subject to taxation under chapter 433 , 17 except that section 433.11 shall not apply. 18 c. The exemption for property owned by a city or county also 19 applies to property which is operated by a city or county as a 20 library, art gallery or museum, conservatory, botanical garden 21 or display, observatory or science museum, or as a location 22 for holding athletic contests, sports or entertainment events, 23 expositions, meetings , or conventions, or leased from the city 24 or county for any such purposes, or leased from the city or 25 county by the Iowa national guard or by a federal agency for 26 the benefit of the Iowa national guard when the property owned 27 by the city or county is devoted for public use and not for 28 pecuniary profit , except as provided in paragraph “e” . 29 d. Food and beverages may be served at the events or 30 locations without affecting the exemptions, provided the city 31 has approved the serving of food and beverages on the property 32 if the property is owned by the city or the county has approved 33 the serving of food and beverages on the property if the 34 property is owned by the county. The exemption for property 35 -1- LSB 1457SS (1) 84 md/sc 1/ 2

S.F. 298 owned by a city or county also applies to property which is 1 located at an airport and leased to a fixed base operator 2 providing aeronautical services to the public. 3 e. The exemption for property owned by a county, township, 4 city, school corporation, levee district, drainage district, or 5 the Iowa national guard under paragraph “a” shall also include 6 property held by such entities for pecuniary profit if such 7 property is leased to and used by a person who, if the person 8 owned the property, would qualify for an exemption authorized 9 by law. An exemption under this paragraph shall be limited 10 to the proportion of the exemption that the lessee would be 11 entitled to if the lessee owned the property. 12 Sec. 2. APPLICABILITY. This Act applies to assessment years 13 beginning on or after January 1, 2012. 14 EXPLANATION 15 Current Code section 427.1, subsection 2, provides a general 16 property tax exemption for the property of a county, township, 17 city, school corporation, levee district, drainage district, 18 or the Iowa national guard, when devoted to public use and not 19 held for pecuniary profit. This bill applies the exemption to 20 property held by such entities for pecuniary profit if such 21 property is leased to and used by a person who, if the person 22 owned the property, would qualify for an exemption authorized 23 by law. An exemption allowed under the bill is limited to the 24 proportion of the exemption that the lessee would be entitled 25 to if the lessee owned the property. 26 The bill applies to assessment years beginning on or after 27 January 1, 2012. 28 -2- LSB 1457SS (1) 84 md/sc 2/ 2