HSB 779 (LSB 6863YC (2) 91)

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 or society for purposes of property taxation and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427.1, subsection 8, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  For purposes of this section, “religious institution or society” includes but is not limited to any of the following:
   (1)  A church or other house of worship.
   (2)  A convention or association of churches or other houses of worship.
   (3)  A religious nonprofit corporation organized under chapter 504 primarily for religious purposes regardless of whether it is integrated or affiliated with a church or other house of worship.
    Sec. 2.  APPLICABILITY.  This Act applies to assessment years beginning on or after January 1, 2027.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, certain property of religious institutions and societies are exempt from property taxation. This bill defines “religious institution or society” to include but not be limited to: (1) a church or other house of worship; (2) a convention or association of churches or other houses of worship; or (3) a religious nonprofit corporation organized under Code chapter 504 operated primarily for religious purposes, regardless of whether it is integrated or affiliated with a church or other house of worship.
   The bill applies to assessment years beginning on or after January 1, 2027.