House File 2344 - Introduced HOUSE FILE 2344 BY THEDE , SHIPLEY , HUNTER , and KURTZ A BILL FOR An Act relating to filing requirements for property tax 1 exemptions for certain societies and organizations and 2 including effective date, applicability, and retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5872YH (3) 88 md/jh

H.F. 2344 DIVISION I 1 PROPERTY TAX EXEMPTIONS AND ABATEMENT 2 Section 1. Section 427.1, subsection 14, unnumbered 3 paragraph 1, Code 2020, is amended to read as follows: 4 A society or organization claiming an exemption under 5 subsection 5, 8, or 33 shall file with the assessor not later 6 than February 1 a statement upon forms to be prescribed by the 7 director of revenue, describing the nature of the property upon 8 which the exemption is claimed and setting out in detail any 9 uses and income from the property derived from the rentals, 10 leases, or other uses of the property not solely for the 11 appropriate objects of the society or organization. Upon the 12 filing and allowance of the claim, the claim shall be allowed 13 on the property for successive years without further filing 14 as long as the property is used for the purposes specified in 15 the original claim for exemption. When the property is sold 16 or transferred, the county recorder shall provide notice of 17 the transfer to the assessor. The notice shall describe the 18 property transferred and the name of the person to whom title 19 to the property is transferred. The county recorder shall 20 also notify both the transferor and the transferee of the 21 termination of the exemption and the filing requirements to 22 continue the exemption on the property transferred. 23 Sec. 2. Section 427.3, Code 2020, is amended to read as 24 follows: 25 427.3 Abatement of taxes of certain exempt entities. 26 The Upon filing of a request for abatement, the board of 27 supervisors may shall abate the taxes levied against property 28 acquired by gift or purchase by a person or entity if the 29 property acquired by gift or purchase was transferred to the 30 person or entity after the deadline for filing for property tax 31 exemption in the year in which the property was transferred 32 and the property acquired by gift or purchase would have been 33 exempt under section 427.1, subsection 7, 8, or 9 , if the 34 person or entity had been able to file for exemption in a 35 -1- LSB 5872YH (3) 88 md/jh 1/ 4

H.F. 2344 timely manner. 1 Sec. 3. EFFECTIVE DATE. This division of this Act, being 2 deemed of immediate importance, takes effect upon enactment. 3 Sec. 4. APPLICABILITY. This division of this Act applies to 4 the transfer of property occurring on or after the effective 5 date of the this division of this Act. 6 DIVISION II 7 RELIGIOUS INSTITUTION PROPERTY TAX EXEMPTION 8 Sec. 5. RELIGIOUS INSTITUTION PROPERTY TAX EXEMPTION —— 9 FILING. Notwithstanding the requirement for the filing of 10 a statement claiming the property tax exemption by February 11 1 as provided in section 427.1, subsection 14, for the 12 assessment years beginning January 1, 2018, and January 1, 13 2019, the statement claiming the exemption under section 427.1, 14 subsection 8, for property owned by a religious institution 15 that was acquired by the religious institution from another 16 religious institution during the calendar year 2015, and that 17 is located in a city having a population of at least ninety 18 thousand but not more than one hundred thousand according to 19 the 2010 federal decennial census, shall be filed not later 20 than thirty days following the effective date of this division 21 of this Act. The exemption authorized under this section for 22 assessment years beginning January 1, 2018, and January 1, 23 2019, shall only apply to tax amounts levied that have not been 24 subject to a tax sale under chapter 446 or that have not been 25 paid by a tax sale purchaser under section 446.32. 26 Sec. 6. EFFECTIVE UPON ENACTMENT. This division of this 27 Act, being deemed of immediate importance, takes effect upon 28 enactment. 29 Sec. 7. RETROACTIVE APPLICABILITY. This division of this 30 Act applies retroactively to January 1, 2018, for assessment 31 years beginning on or after that date. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -2- LSB 5872YH (3) 88 md/jh 2/ 4

H.F. 2344 This bill relates to property tax exemption filing 1 requirements for certain societies and organizations. 2 Code section 427.1 requires certain societies or 3 organizations claiming a property tax exemption to file a 4 statement with the assessor not later than February 1. Upon 5 the filing and allowance of the claim, the claim shall be 6 allowed on the property for successive years without further 7 filing as long as the property is used for the purposes 8 specified in the original claim for exemption. When a property 9 receiving a property tax exemption is transferred, division 10 I of the bill requires the county recorder to notify both 11 the transferor and the transferee of the termination of the 12 exemption and the filing requirements to continue the exemption 13 on the property transferred. 14 Code section 427.3 authorizes a county board of supervisors 15 to abate the taxes levied against property acquired by gift or 16 purchase by a person or entity if the property acquired by gift 17 or purchase was transferred to the person or entity after the 18 deadline for filing for property tax exemption in the year in 19 which the property was transferred and the property acquired 20 by gift or purchase would have been exempt if the person or 21 entity had been able to file for exemption in a timely manner. 22 Division I of the bill requires the board of supervisors to 23 abate the taxes under such circumstances upon the filing of a 24 request for abatement. 25 Division I of the bill takes effect upon enactment and 26 applies to the transfer of property occurring on or after the 27 effective date of division I of the bill. 28 Division II of the bill provides that, notwithstanding the 29 requirement for the filing of a statement claiming the property 30 tax exemption by February 1, for the assessment years beginning 31 January 1, 2018, and January 1, 2019, the statement claiming 32 the exemption for property owned by a religious institution 33 that was acquired by the religious institution from another 34 religious institution during the calendar year 2015, and that 35 -3- LSB 5872YH (3) 88 md/jh 3/ 4

H.F. 2344 is located in a city having a population of at least 90,000 but 1 not more than 100,000 according to the 2010 federal decennial 2 census, shall be filed not later than 30 days following the 3 effective date of division II of the bill. Additionally, 4 the exemption authorized under division II of the bill for 5 assessment years beginning January 1, 2018, and January 1, 6 2019, shall only apply to tax amounts levied that have not been 7 sold under Code chapter 446 or that have not been paid by a tax 8 sale purchaser under Code section 446.32. 9 Division II of the bill takes effect upon enactment and 10 applies retroactively to January 1, 2018, for assessment years 11 beginning on or after that date. 12 -4- LSB 5872YH (3) 88 md/jh 4/ 4