House Study Bill 779 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON NORDMAN) A BILL FOR An Act relating to the definition of a religious institution 1 or society for purposes of property taxation and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6863YC (2) 91 ms/md

H.F. _____ Section 1. Section 427.1, subsection 8, Code 2026, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . c. For purposes of this section, “religious 3 institution or society” includes but is not limited to any of 4 the following: 5 (1) A church or other house of worship. 6 (2) A convention or association of churches or other houses 7 of worship. 8 (3) A religious nonprofit corporation organized under 9 chapter 504 primarily for religious purposes regardless of 10 whether it is integrated or affiliated with a church or other 11 house of worship. 12 Sec. 2. APPLICABILITY. This Act applies to assessment years 13 beginning on or after January 1, 2027. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 Under current law, certain property of religious 18 institutions and societies are exempt from property taxation. 19 This bill defines “religious institution or society” to include 20 but not be limited to: (1) a church or other house of worship; 21 (2) a convention or association of churches or other houses of 22 worship; or (3) a religious nonprofit corporation organized 23 under Code chapter 504 operated primarily for religious 24 purposes, regardless of whether it is integrated or affiliated 25 with a church or other house of worship. 26 The bill applies to assessment years beginning on or after 27 January 1, 2027. 28 -1- LSB 6863YC (2) 91 ms/md 1/ 1