Senate File 2145 - Introduced SENATE FILE 2145 BY BERTRAND A BILL FOR An Act relating to the property tax exemption for dwelling 1 units owned and managed by certain nonprofit organizations 2 and including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5814XS (2) 87 md/jh
S.F. 2145 Section 1. Section 427.1, subsection 21A, Code 2018, is 1 amended to read as follows: 2 21A. Dwelling unit property owned by community housing 3 development organization. Dwelling unit property owned , and 4 managed , or controlled by a community housing development 5 organization, as recognized by the state of Iowa and the 6 federal government pursuant to criteria for community housing 7 development organization designation contained in the HOME 8 program of the federal National Affordable Housing Act of 1990, 9 if the organization is also a nonprofit organization exempt 10 from federal income tax under section 501(c)(3) of the Internal 11 Revenue Code and owns and manages more than one hundred fifty 12 dwelling units that are located in a city with a population of 13 more than one hundred ten eighty thousand. For the 2005 and 14 2006 assessment years beginning January 1, 2005, and January 15 1, 2006 , an application is not required to be filed to receive 16 the exemption. For the 2007 assessment year beginning January 17 1, 2007, and subsequent assessment years, an application for 18 exemption must be filed with the assessing authority not later 19 than February 1 of the assessment year for which the exemption 20 is sought. Upon the filing and allowance of the claim, the 21 claim shall be allowed on the property for successive years 22 without further filing as long as the property continues to 23 qualify for the exemption. 24 Sec. 2. IMPLEMENTATION. Section 25B.7 shall not apply to 25 this Act. 26 Sec. 3. APPLICABILITY. This Act applies to assessment years 27 beginning on or after January 1, 2019. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 Current law provides an exemption from property taxation 32 for dwelling unit property owned and managed by a nonprofit 33 community housing development organization if the organization 34 owns and manages more than 150 dwelling units located in a city 35 -1- LSB 5814XS (2) 87 md/jh 1/ 2
S.F. 2145 with a population of more than 110,000. This bill authorizes 1 the property tax exemption for dwelling unit property if the 2 property is owned, managed, or controlled by a community 3 housing development organization, instead of requiring both 4 ownership and management of the property. The bill also lowers 5 the city population criteria from 110,000 to 80,000. 6 The bill makes inapplicable Code section 25B.7. Code 7 section 25B.7 provides that for a property tax credit or 8 exemption enacted on or after January 1, 1997, if a state 9 appropriation made to fund the credit or exemption is not 10 sufficient to fully fund the credit or exemption, the political 11 subdivision shall be required to extend to the taxpayer only 12 that portion of the credit or exemption estimated by the 13 department of revenue to be funded by the state appropriation. 14 This bill applies to assessment years beginning on or after 15 January 1, 2019. 16 -2- LSB 5814XS (2) 87 md/jh 2/ 2