Complete Bill History
House File 202
BY ISENHART, HANSON, and
A BILL FOR
1 An Act relating to the property tax exemption for property
2 owned by certain municipalities and the Iowa national guard
3 and including applicability provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 1 Section 1. Section 427.1, subsection 2, Code 2011, is
1 2 amended to read as follows:
1 3 2. Municipal and military property.
1 4 a. The property of a county, township, city, school
1 5 corporation, levee district, drainage district, or the Iowa
1 6 national guard, when devoted to public use and not held for
1 7 pecuniary profit, except
property as provided in paragraph "e".
1 8 b. The exemption under paragraph "a" shall not apply to any
1 9 of the following:
1 10 (1) Property of a municipally owned electric utility
1 11 held under joint ownership and property of an electric power
1 12 facility financed under chapter 28F or 476A that shall be
1 13 subject to taxation under chapter 437A and facilities.
1 14 (2) Facilities of a municipal utility that are used for the
1 15 provision of local exchange services pursuant to chapter 476,
1 16 but only to the extent such facilities are used to provide such
1 17 services, which shall be subject to taxation under chapter 433,
1 18 except that section 433.11 shall not apply.
1 19 c. The exemption for property owned by a city or county also
1 20 applies to property which is operated by a city or county as a
1 21 library, art gallery or museum, conservatory, botanical garden
1 22 or display, observatory or science museum, or as a location
1 23 for holding athletic contests, sports or entertainment events,
1 24 expositions, meetings, or conventions, or leased from the city
1 25 or county for any such purposes, or leased from the city or
1 26 county by the Iowa national guard or by a federal agency for
1 27 the benefit of the Iowa national guard when the property owned
1 28 by the city or county is devoted for public use and not for
1 29 pecuniary profit, except as provided in paragraph "e".
1 30 d. Food and beverages may be served at the events or
1 31 locations without affecting the exemptions, provided the city
1 32 has approved the serving of food and beverages on the property
1 33 if the property is owned by the city or the county has approved
1 34 the serving of food and beverages on the property if the
1 35 property is owned by the county. The exemption for property
2 1 owned by a city or county also applies to property which is
2 2 located at an airport and leased to a fixed base operator
2 3 providing aeronautical services to the public.
2 4 e. The exemption for property owned by a county, township,
2 5 city, school corporation, levee district, drainage district, or
2 6 the Iowa national guard under paragraph "a" shall also include
2 7 property held by such entities for pecuniary profit if such
2 8 property is leased to and used by a person who, if the person
2 9 owned the property, would qualify for an exemption authorized
2 10 by law. An exemption under this paragraph shall be limited
2 11 to the proportion of the exemption that the lessee would be
2 12 entitled to if the lessee owned the property.
2 13 Sec. 2. APPLICABILITY. This Act applies to assessment years
2 14 beginning on or after January 1, 2012.
2 15 EXPLANATION
2 16 Current Code section 427.1, subsection 2, provides a general
2 17 property tax exemption for the property of a county, township,
2 18 city, school corporation, levee district, drainage district,
2 19 or the Iowa national guard, when devoted to public use and not
2 20 held for pecuniary profit. This bill applies the exemption to
2 21 property held by such entities for pecuniary profit if such
2 22 property is leased to and used by a person who, if the person
2 23 owned the property, would qualify for an exemption authorized
2 24 by law. An exemption allowed under the bill is limited to the
2 25 proportion of the exemption that the lessee would be entitled
2 26 to if the lessee owned the property.
2 27 The bill applies to assessment years beginning on or after
2 28 January 1, 2012.
LSB 1457HH (6) 84
Complete Bill History