Bill Text: IA HF2059 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the tax exemption of religious institution or society property being used for educational purposes by a third party, and including effective date and retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Introduced - Dead) 2024-01-31 - Subcommittee recommends passage. Vote Total: 2-0. [HF2059 Detail]
Download: Iowa-2023-HF2059-Introduced.html
House
File
2059
-
Introduced
HOUSE
FILE
2059
BY
GUSTOFF
,
SHIPLEY
,
DIEKEN
,
KNIFF
MCCULLA
,
GEHLBACH
,
BODEN
,
ANDREWS
,
and
THOMSON
A
BILL
FOR
An
Act
relating
to
the
tax
exemption
of
religious
institution
1
or
society
property
being
used
for
educational
purposes
by
2
a
third
party,
and
including
effective
date
and
retroactive
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
5061YH
(6)
90
dg/jh
H.F.
2059
Section
1.
Section
427.1,
subsection
8,
paragraph
a,
Code
1
2024,
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
or
10
lease
land
not
exceeding
three
hundred
twenty
acres
in
each
11
county
for
its
appropriate
objects.
For
assessment
years
12
beginning
on
or
after
January
1,
2016,
the
The
exemption
13
granted
by
this
subsection
shall
also
apply
to
grounds
any
of
14
the
following:
15
(1)
Grounds
owned
by
a
religious
institution
or
society,
not
16
exceeding
a
total
of
fifty
acres,
if
all
monetary
and
in-kind
17
profits
of
the
religious
institution
or
society
resulting
18
from
use
or
lease
of
the
grounds
are
used
exclusively
by
the
19
religious
institution
or
society
for
the
appropriate
objects
20
of
the
institution
or
society.
21
(2)
Grounds
owned
by
a
religious
institution
or
society
22
used
by
a
person
or
entity,
regardless
of
whether
the
religious
23
institution
or
society
has
a
lease
agreement
with
the
person
or
24
entity,
if
all
of
the
following
apply:
25
(a)
The
grounds
are
being
used
by
the
person
or
entity
for
26
the
primary
purpose
of
providing
educational
instruction
to
27
children.
28
(b)
The
person
or
entity’s
educational
instruction
includes
29
religious
instruction
consistent
with
the
doctrines
of
the
30
religious
institution
or
society
that
owns
the
grounds.
31
(c)
(i)
The
person
or
entity
using
the
grounds
is
not
32
required
to
make
rental
payments
to
the
religious
institution
33
or
society
that
owns
the
grounds.
34
(ii)
For
the
purposes
of
this
subparagraph
division,
a
35
-1-
LSB
5061YH
(6)
90
dg/jh
1/
3
H.F.
2059
payment
from
the
person
or
entity
using
the
grounds
to
the
1
religious
institution
or
society
that
owns
the
grounds
as
2
reimbursement
for
janitorial
services,
utilities,
or
other
3
similar
reimbursement
payments
shall
not
be
considered
a
rental
4
payment.
5
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
6
importance,
takes
effect
upon
enactment.
7
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
8
retroactively
to
assessment
years
beginning
on
or
after
January
9
1,
2024.
10
EXPLANATION
11
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
12
the
explanation’s
substance
by
the
members
of
the
general
assembly.
13
This
bill
relates
to
the
tax
exemption
of
religious
14
institution
or
society
property
being
used
for
educational
15
purposes
by
a
third
party.
16
The
bill
allows
grounds
owned
by
a
religious
institution
or
17
society
and
used
by
a
person
or
entity,
regardless
of
whether
18
the
religious
institution
or
society
has
a
lease
agreement
19
with
the
person
or
entity,
to
retain
tax-exempt
status
if
the
20
grounds
are
being
used
by
the
person
or
entity
for
the
primary
21
purpose
of
providing
educational
instruction
to
children,
22
the
person
or
entity
providing
educational
services
includes
23
in
its
instruction
religious
instruction
consistent
with
the
24
doctrines
of
the
religious
institution
or
society,
and
the
25
person
or
entity
using
the
grounds
is
not
required
to
make
26
rental
payments
to
the
religious
institution
or
society.
27
For
the
purposes
of
determining
the
tax-exempt
status
of
28
a
property
belonging
to
a
religious
institution
or
society,
29
a
payment
from
the
person
or
entity
using
the
grounds
to
the
30
religious
institution
or
society
that
owns
the
grounds
as
31
reimbursement
for
janitorial
services,
utilities,
or
other
32
similar
reimbursement
will
not
be
considered
a
rental
payment.
33
The
bill
is
effective
upon
enactment
and
retroactively
34
applies
to
assessment
years
beginning
on
or
after
January
1,
35
-2-
LSB
5061YH
(6)
90
dg/jh
2/
3
