This bill amends the existing property tax exemption laws for religious institutions and societies in Iowa. It specifies that for assessment years starting January 1, 2027, a determination letter from the Internal Revenue Service (IRS) recognizing a religious institution or society's exemption under section 501(c)(3) of the Internal Revenue Code will serve as conclusive evidence of eligibility for property tax exemption. Additionally, the bill allows religious institutions or societies to include a copy of this determination letter when filing for exemptions, starting from statements filed on or after July 1, 2026.

Furthermore, the bill clarifies that if a property that has been granted an exemption is sold or transferred, the exemption will continue as long as the property is used for the purposes specified in the original claim. The county recorder is required to notify both the transferor and transferee about the termination of any exemption and the necessary filing requirements to maintain the exemption on the transferred property. These changes aim to streamline the process for religious institutions and ensure that their tax-exempt status is recognized consistently.

Statutes affected:
Introduced: 427.1