H.F. _____ Section 1. Section 427.1, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 39. County fair property. Fairgrounds, as 3 defined in section 174.1, that are owned by a county or a fair, 4 as defined in section 174.1. The use of such fairgrounds for 5 purposes other than a fair event, as defined in section 174.1, 6 by the owner or by a lessee, including uses for pecuniary 7 profit, shall not affect the exemption. 8 Sec. 2. IMPLEMENTATION OF ACT. Section 25B.7 does not apply 9 to the property tax exemption established in this Act. 10 Sec. 3. APPLICABILITY. This Act applies to assessment years 11 beginning on or after January 1, 2014. 12 EXPLANATION 13 This bill establishes a property tax exemption for 14 fairgrounds that are owned by a county or a fair. The bill 15 provides that the use of such fairgrounds for purposes other 16 than a fair event by the owner or by a lessee, including uses 17 for pecuniary profit, shall not affect the exemption. The bill 18 references the definitions in the Code chapter 174 for the 19 terms “fairgrounds”, “fair”, and “fair event”. 20 Code section 25B.7 provides that for a property tax credit 21 or exemption enacted on or after January 1, 1997, if a state 22 appropriation made to fund the credit or exemption is not 23 sufficient to fully fund the credit or exemption, the political 24 subdivision shall be required to extend to the taxpayer only 25 that portion of the credit or exemption estimated by the 26 department of revenue to be funded by the state appropriation. 27 The bill provides that Code section 25B.7 does not apply to 28 the property tax exemption created in the bill. 29 The bill applies to assessment years beginning on or after 30 January 1, 2014. 31 -1- LSB 2511HC (2) 85 md/rj 1/ 1