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HF 2789

A bill for an act relating to the definition of a religious institution or society for purposes of property taxation and including applicability provisions.

2025-2026 Regular Session

HF 2789 expands property tax exemptions to include religious nonprofits under Chapter 504 and conventions/associations of churches, effective for 2027 assessments.

Introduced, placed on Ways and Means calendar. H.J. 04/29.
#nonprofitentities #propertytaxes #religiousorganizations #taxexemptions #taxation
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Bill Summary · HF 2789

Summary of HF 2789 (Session 2025-2026, Iowa)

Purpose and intent

HF 2789 proposes to expand the definition of “religious institution or society” for purposes of property taxation. The bill aims to clarify and broaden which entities qualify for property tax exemptions by expressly including additional categories of religious organizations under Iowa law. It sets a clear applicability timeline, applying to assessment years beginning on or after January 1, 2027.

Key provisions

  • New definition addition: The bill adds a new paragraph to Iowa Code section 427.1(8), defining “religious institution or society” to include, but not be limited to:

    1. A church or other house of worship.
    2. A convention or association of churches or other houses of worship.
    3. A religious nonprofit corporation organized under Code Chapter 504 that is operated primarily for religious purposes, irrespective of whether it is integrated or affiliated with a church or other house of worship.

  • Scope of applicability: The expanded definition is explicitly tied to property tax exemptions for religious institutions or societies.

  • Effective date: The changes apply to assessment years beginning on or after January 1, 2027.

Who and what is affected

  • Religious organizations: Churches, houses of worship, and conventions/associations of such entities.

  • Religious nonprofits: Corporations under Iowa Code Chapter 504 that exist primarily for religious purposes, including those not formally integrated with a church or house of worship.

  • Property tax exemptions: Entities meeting the broadened definition could be eligible for property tax exemptions under the applicable provisions of Code section 427.1, subsection 8, as amended.

Procedural and timeline notes

  • Legislative action: HF 2789 was introduced and placed on the Ways and Means calendar (as of April 29, 2026).
  • Effective timing: The bill is prospectively effective for assessment years beginning after January 1, 2027, providing a transition period for taxpayers and assessors.

Potential impact (overview)

  • The bill broadens the set of religious entities that qualify for property tax exemptions, potentially increasing exemptions for certain religious nonprofits organized under Chapter 504 and those functioning as or affiliated with conventions/associations of churches.
  • Local assessors and tax administrators would need to evaluate properties of the newly included entities to determine exemption eligibility under the updated definition.
  • Taxpayers should anticipate a change in the pool of properties eligible for exemptions beginning with the 2027 assessment year.

Summary in plain terms

HF 2789 expands who can qualify for state property tax exemptions by explicitly including religious nonprofits organized under Chapter 504 and associations/conventions of churches as “religious institutions or societies.” The change takes effect for assessment years starting in 2027 or later, and would require administrative updates to recognize these additional entities as eligible for exemptions where applicable.

Compiled from official sources — confirm details with the bill’s official record.

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