Read the full stored bill text
House
File
2589
-
Introduced
HOUSE
FILE
2589
BY
CROKEN
A
BILL
FOR
An
Act
relating
to
the
taxation
of
religious
institutions
and
1
societies.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
6674YH
(2)
91
ms/md
H.F.
2589
Section
1.
Section
427.1,
subsection
8,
paragraph
a,
Code
1
2026,
is
amended
to
read
as
follows:
2
a.
All
grounds
and
buildings
used
or
under
construction
by
3
literary,
scientific,
charitable,
benevolent,
agricultural,
4
and
religious
institutions
and
societies
solely
for
their
5
appropriate
objects,
not
exceeding
three
hundred
twenty
6
acres
in
extent
and
not
leased
or
otherwise
used
or
under
7
construction
with
a
view
to
pecuniary
profit.
However,
8
an
organization
mentioned
in
this
subsection
whose
primary
9
objective
is
to
preserve
land
in
its
natural
state
may
own
10
or
lease
land
not
exceeding
three
hundred
twenty
acres
in
11
each
county
for
its
appropriate
objects.
For
assessment
12
years
beginning
on
or
after
January
1,
2016,
the
exemption
13
granted
by
this
subsection
shall
also
apply
to
grounds
owned
14
by
a
religious
institution
or
society,
not
exceeding
a
total
15
of
fifty
acres,
if
all
monetary
and
in-kind
profits
of
the
16
religious
institution
or
society
resulting
from
use
or
lease
of
17
the
grounds
are
used
exclusively
by
the
religious
institution
18
or
society
for
the
appropriate
objects
of
the
institution
or
19
society.
For
assessment
years
beginning
on
or
after
January
20
1,
2027,
a
determination
letter
issued
by
the
internal
revenue
21
service
recognizing
exemption
of
a
religious
institution
or
22
society
under
section
501(c)(3)
of
the
Internal
Revenue
Code
23
shall
be
conclusive
evidence
of
eligibility
for
exemption
under
24
this
subsection
and
such
federal
determination
shall
not
be
25
modified
by
the
local
assessor.
26
Sec.
2.
Section
427.1,
subsection
14,
unnumbered
paragraph
27
1,
Code
2026,
is
amended
to
read
as
follows:
28
A
society
or
organization
claiming
an
exemption
under
29
subsection
5,
8,
or
33
shall
file
with
the
assessor
not
30
later
than
February
1
a
statement
upon
forms
to
be
prescribed
31
by
the
director
of
revenue,
describing
the
nature
of
the
32
property
upon
which
the
exemption
is
claimed
and
setting
out
33
in
detail
any
uses
and
income
from
the
property
derived
from
34
the
rentals,
leases,
or
other
uses
of
the
property
not
solely
35
-1-
LSB
6674YH
(2)
91
ms/md
1/
3
H.F.
2589
for
the
appropriate
objects
of
the
society
or
organization.
1
In
addition,
for
statements
filed
on
or
after
July
1,
2026,
2
a
religious
institution
or
society
may
include
a
copy
of
the
3
determination
letter
issued
by
the
internal
revenue
service
4
recognizing
exemption
of
a
religious
institution
or
society
5
under
section
501(c)(3)
of
the
Internal
Revenue
Code.
For
6
assessment
years
beginning
on
or
after
January
1,
2027,
a
7
determination
letter
issued
by
the
internal
revenue
service
8
recognizing
exemption
of
a
religious
institution
or
society
9
under
section
501(c)(3)
of
the
Internal
Revenue
Code
shall
10
be
conclusive
evidence
of
eligibility
for
exemption
under
11
subsection
8
and
such
federal
determination
shall
not
be
12
modified
by
the
local
assessor.
Upon
the
filing
and
allowance
13
of
the
claim,
the
claim
shall
be
allowed
on
the
property
for
14
successive
years
without
further
filing
as
long
as
the
property
15
is
used
for
the
purposes
specified
in
the
original
claim
for
16
exemption.
When
the
property
is
sold
or
transferred,
the
17
county
recorder
shall
provide
notice
of
the
transfer
to
the
18
assessor.
The
notice
shall
describe
the
property
transferred
19
and
the
name
of
the
person
to
whom
title
to
the
property
20
is
transferred.
A
claim
that
has
been
allowed
on
property
21
under
subsection
8
shall
be
allowed
after
the
transfer
of
the
22
property
if
the
property
continues
to
be
used
for
the
purposes
23
specified
in
the
original
claim
for
exemption.
The
county
24
recorder
shall
notify
both
the
transferor
and
the
transferee
25
before
the
termination
of
any
exemption
under
subsection
8
26
and
the
filing
requirements
to
continue
the
exemption
on
the
27
property
transferred.
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
Under
current
law,
certain
grounds
used
or
under
32
construction
by
a
religious
institution
or
society
are
exempt
33
from
property
taxes.
To
claim
such
exemption,
the
religious
34
institution
or
society
must
file
a
statement
describing
the
35
-2-
LSB
6674YH
(2)
91
ms/md
2/
3
H.F.
2589
nature
of
the
property
upon
which
the
exemption
is
claimed
and
1
setting
out
in
detail
any
uses
and
income
from
the
property
2
derived
from
the
rentals,
leases,
or
other
uses
of
the
property
3
not
solely
for
the
appropriate
objects
of
the
religious
4
institution
or
society.
Once
the
claim
has
been
allowed,
and
5
the
exemption
is
applied
to
the
property,
the
claim
is
allowed
6
on
the
property
for
successive
years
without
further
filing
7
as
long
as
the
property
is
used
for
the
purposes
specified
in
8
the
original
claim
for
exemption.
When
the
property
is
sold
9
or
transferred,
the
county
recorder
shall
provide
notice
of
10
the
transfer
to
the
assessor.
The
notice
shall
describe
the
11
property
transferred
and
the
name
of
the
person
to
whom
title
12
to
the
property
is
transferred.
13
This
bill
provides
that
for
assessment
years
beginning
on
14
or
after
January
1,
2027,
a
determination
letter
issued
by
the
15
internal
revenue
service
recognizing
exemption
of
a
religious
16
institution
or
society
under
section
501(c)(3)
of
the
Internal
17
Revenue
Code
shall
be
conclusive
evidence
of
eligibility
for
18
exemption
of
property
taxes.
A
claim
that
has
been
allowed
19
on
property
of
a
religious
institution
or
society
shall
be
20
allowed
after
the
transfer
of
the
property
if
the
property
21
continues
to
be
used
for
the
purposes
specified
in
the
original
22
claim
for
exemption.
The
county
recorder
shall
notify
both
23
the
transferor
and
the
transferee
before
the
termination
of
24
any
exemption
of
a
religious
institution
or
society
and
the
25
filing
requirements
to
continue
the
exemption
on
the
property
26
transferred.
27
-3-
LSB
6674YH
(2)
91
ms/md
3/
3