Senate File 408 - Reprinted



                                       SENATE FILE       
                                       BY  COMMITTEE ON WAYS AND MEANS

                                      (SUCCESSOR TO SF 278)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the exemption from property taxation of
  2    certain low=rent housing and including effective date and
  3    applicability date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2855SV 81
  6 sc/sh/8

PAG LIN



  1  1    Section 1.  Section 427.1, subsection 21, Code 2005, is
  1  2 amended to read as follows:
  1  3    21.  LOW=RENT HOUSING.  The property owned and operated or
  1  4 controlled by a nonprofit organization, as recognized by the
  1  5 internal revenue service, providing low=rent housing for
  1  6 persons who are elderly and persons with physical and mental
  1  7 disabilities.  The exemption granted under the provisions of
  1  8 this subsection shall apply only until the terms final payment
  1  9 due date of the borrower's original low=rent housing
  1 10 development mortgage or until the borrower's original low=rent
  1 11 housing development mortgage is paid in full or expires,
  1 12 whichever is sooner, subject to the provisions of subsection
  1 13 14.  However, if the borrower's original low=rent housing
  1 14 development mortgage is refinanced, the exemption shall apply
  1 15 only until the date that would have been the final payment due
  1 16 date under the terms of the borrower's original low=rent
  1 17 housing development mortgage or until the refinanced mortgage
  1 18 is paid in full or expires, whichever is sooner, subject to
  1 19 the provisions of subsection 14.
  1 20    Sec. 2.  Section 427.1, Code 2005, is amended by adding the
  1 21 following new subsection:
  1 22    NEW SUBSECTION.  21A.  Dwelling unit property owned and
  1 23 managed by a nonprofit organization if the nonprofit
  1 24 organization owns and manages more than forty dwelling units
  1 25 that are located in a city with a population of more than one
  1 26 hundred ten thousand which has a public housing authority that
  1 27 does not own or manage housing stock for the purpose of low=
  1 28 rent housing.
  1 29    Sec. 3.  PROPERTY TAX EXEMPTION STATUS.  This Act is not
  1 30 considered a property tax exemption enacted on or after
  1 31 January 1, 1997, for purposes of section 25B.7.
  1 32    Sec. 4.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  1 33 being deemed of immediate importance, takes effect upon
  1 34 enactment and applies retroactively to January 1, 2005, for
  1 35 assessment years beginning on or after that date.
  2  1 SF 408
  2  2 sc:nh/cc/26