House File 2058      



                                    HOUSE FILE       
                                    BY  DRAKE

                                         A BILL FOR

     1 An Act establishing a property tax exemption for certain care
     2    facilities.
     3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
       TLSB 5623YH (2) 84
       md/sc

PAG LIN



  1  1    Section 1.  Section 427.1, Code Supplement 2011, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  38.  Care facilities.
  1  4    a.  Property owned solely by a nonprofit organization and
  1  5 operated on a nonprofit basis as a residential care facility or
  1  6 nursing facility under chapter 135C, an elder group home under
  1  7 chapter 231B, an assisted living program under chapter 231C, an
  1  8 adult day services program under chapter 231D, or a retirement
  1  9 facility under chapter 523D.  The exemption shall apply to
  1 10 all buildings, structures, and land which are used for such
  1 11 purposes. The exemption shall apply to the assessment year
  1 12 beginning after the application for the exemption is filed.
  1 13    b.  Applications for exemption shall be filed with the
  1 14 assessing authority not later than February 1 of the first
  1 15 year for which the exemption is requested, on forms provided
  1 16 by the department of revenue. The application shall describe
  1 17 and locate the specific property for which the exemption is
  1 18 requested.
  1 19    c.  Once the exemption is granted, the exemption shall
  1 20 continue to be granted for subsequent assessment years
  1 21 without further filing of applications as long as the property
  1 22 continues to meet the requirements of this subsection. The
  1 23 taxpayer shall notify the assessing authority when the property
  1 24 ceases to meet the requirements of this subsection.
  1 25    Sec. 2.  IMPLEMENTATION.  Section 25B.7 shall not apply to
  1 26 the provisions of this Act.
  1 27                           EXPLANATION
  1 28    This bill establishes a property tax exemption for property
  1 29 owned solely by a nonprofit organization and operated on a
  1 30 nonprofit basis as a residential care facility or nursing
  1 31 facility under Code chapter 135C, an elder group home under
  1 32 Code chapter 231B, an assisted living program under Code
  1 33 chapter 231C, an adult day services program under Code chapter
  1 34 231D, or a retirement facility under Code chapter 523D.  The
  1 35 exemption applies to all buildings, structures, and land which
  2  1 are used for such purposes. Once the exemption is granted, the
  2  2 exemption continues to be granted for subsequent assessment
  2  3 years without further filing of applications as long as the
  2  4 property continues to meet the requirements of the exemption.
  2  5 The taxpayer is required to notify the assessing authority when
  2  6 the property ceases to meet the requirements for the exemption.
  2  7    The bill provides that the provisions in Code section 25B.7,
  2  8 relating to the obligation of the state to reimburse local
  2  9 jurisdictions for property tax credits and exemptions, does not
  2 10 apply to the exemption in the bill.
       LSB 5623YH (2) 84
       md/sc