House File 2340 - Introduced HOUSE FILE 2340 BY HEIN A BILL FOR An Act relating to benefited recreational lake districts, 1 water quality districts, and combined recreational lake and 2 water quality districts and including effective date and 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5801YH (2) 85 md/sc

H.F. 2340 Section 1. NEW SECTION . 357E.15 Exemption from taxation 1 —— refunds. 2 1. The property and facilities of a district shall not be 3 taxable in any manner by the state or any of its political 4 subdivisions. 5 2. A district is a tax-certifying body for purposes of 6 section 423.4, subsection 1. 7 Sec. 2. Section 427.1, subsection 2, Code 2014, is amended 8 to read as follows: 9 2. Municipal and military property. The property of a 10 county, township, city, school corporation, levee district, 11 drainage district, district organized under chapter 357E, or 12 the Iowa national guard, when devoted to public use and not 13 held for pecuniary profit, except property of a municipally 14 owned electric utility held under joint ownership and property 15 of an electric power facility financed under chapter 28F or 16 476A that shall be subject to taxation under chapter 437A 17 and facilities of a municipal utility that are used for the 18 provision of local exchange services pursuant to chapter 476 , 19 but only to the extent such facilities are used to provide such 20 services, which shall be subject to taxation under chapter 433 , 21 except that section 433.11 shall not apply. The exemption for 22 property owned by a city or county also applies to property 23 which is operated by a city or county as a library, art 24 gallery or museum, conservatory, botanical garden or display, 25 observatory or science museum, or as a location for holding 26 athletic contests, sports or entertainment events, expositions, 27 meetings or conventions, or leased from the city or county for 28 any such purposes, or leased from the city or county by the 29 Iowa national guard or by a federal agency for the benefit of 30 the Iowa national guard when devoted for public use and not 31 for pecuniary profit. Food and beverages may be served at the 32 events or locations without affecting the exemptions, provided 33 the city has approved the serving of food and beverages on the 34 property if the property is owned by the city or the county 35 -1- LSB 5801YH (2) 85 md/sc 1/ 3

H.F. 2340 has approved the serving of food and beverages on the property 1 if the property is owned by the county. The exemption for 2 property owned by a city or county also applies to property 3 which is located at an airport and leased to a fixed base 4 operator providing aeronautical services to the public. 5 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 6 immediate importance, takes effect upon enactment. 7 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 8 retroactively to January 1, 2014, for assessment years 9 beginning on or after that date. 10 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies 11 retroactively to January 1, 2014, for sales and use tax paid 12 on or after that date. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill relates to benefited recreational lake districts, 17 water quality districts, and combined recreational lake and 18 water quality districts organized under Code chapter 357E. 19 The bill provides that the property and facilities of 20 a district organized under Code chapter 357E shall not be 21 taxable in any manner by the state or any of its political 22 subdivisions. 23 The bill specifies that a district organized under Code 24 chapter 357E is a tax-certifying body for purposes of sales 25 or use tax construction contractor refunds under Code section 26 423.4(1), for construction contracts with tax-certifying 27 bodies. By operation of law, the designation of a district as 28 a tax-certifying body for purposes of Code section 423.4(1), 29 means that the district is a “designated exempt entity” within 30 the meaning of Code section 423.3(80), relating to an exemption 31 for construction contractors performing work for such an 32 entity. 33 The bill also exempts from property taxation the property of 34 a district organized under Code chapter 357E, when devoted to 35 -2- LSB 5801YH (2) 85 md/sc 2/ 3

H.F. 2340 public use and not held for pecuniary profit. 1 The bill takes effect upon enactment. 2 The bill applies retroactively to January 1, 2014, for 3 assessment years beginning on or after that date. 4 The bill applies retroactively to January 1, 2014, for sales 5 and use tax paid on or after that date. 6 -3- LSB 5801YH (2) 85 md/sc 3/ 3