House File 134
HOUSE FILE
BY PETTENGILL, WHITAKER,
DANDEKAR, BERRY, SWAIM,
KUHN, and SCHUELLER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the military service tax exemption and credit
2 and including an applicability date provision.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1149HH 82
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PAG LIN
1 1 Section 1. Section 331.608, subsection 9, Code 2007, is
1 2 amended to read as follows:
1 3 9. As used in this section, "veteran" means a veteran as
1 4 defined in section 35.1, who enlisted or was inducted from the
1 5 county, resided at any time in the county, or is buried in the
1 6 county. For purposes of records maintained for claims filed
1 7 under chapter 426A, "veteran" also means a veteran as defined
1 8 in section 426A.11, subsection 4.
1 9 Sec. 2. Section 426A.11, subsections 1 and 2, Code 2007,
1 10 are amended to read as follows:
1 11 1. The property, not to exceed two thousand seven hundred
1 12 seventy=eight dollars in taxable value of any veteran, as
1 13 defined in for this section 35.1, of the First World War.
1 14 2. The property, not to exceed one two thousand eight five
1 15 hundred fifty=two dollars in taxable value of an honorably
1 16 separated, retired, furloughed to a reserve, placed on
1 17 inactive status, or discharged any veteran, as defined in for
1 18 this section 35.1 who did not serve during the First World
1 19 War.
1 20 Sec. 3. Section 426A.11, Code 2007, is amended by adding
1 21 the following new subsection:
1 22 NEW SUBSECTION. 2A. As used in this chapter only,
1 23 "veteran" means a resident of the state who served in the
1 24 armed forces of the United States at any time and who was
1 25 discharged under honorable conditions.
1 26 Sec. 4. Section 426A.11, subsection 4, Code 2007, is
1 27 amended to read as follows:
1 28 4. For purposes of this chapter, unless the context
1 29 otherwise requires, "veteran" also means a resident of this
1 30 state who is a former member of the armed forces of the United
1 31 States and who served for a minimum aggregate of eighteen
1 32 months and who was discharged under honorable conditions meets
1 33 the definition of "veteran" under section 35.1, subsection 2,
1 34 paragraph "b", subparagraph (1), (2), (4), (6), or (7).
1 35 However, "veteran" also means a resident of this state who is
2 1 a former member of the armed forces of the United States and
2 2 who, after serving fewer than eighteen months, was honorably
2 3 discharged because of a service=related injury sustained by
2 4 the veteran.
2 5 Sec. 5. Section 426A.12, Code 2007, is amended to read as
2 6 follows:
2 7 426A.12 EXEMPTIONS TO RELATIVES.
2 8 In case any person in the foregoing classifications does
2 9 not claim the exemption from taxation, it shall be allowed in
2 10 the name of the person to the same extent on the property of
2 11 any one of the following persons in the order named:
2 12 1. The spouse, or surviving spouse remaining unmarried, of
2 13 a veteran, as defined in for this chapter or in section 35.1,
2 14 where they are living together or were living together at the
2 15 time of the death of the veteran.
2 16 2. The parent whose spouse is deceased and who remains
2 17 unmarried, of a veteran, as defined in for this chapter or in
2 18 section 35.1, whether living or deceased, where the parent is,
2 19 or was at the time of death of the veteran, dependent on the
2 20 veteran for support.
2 21 3. The minor child, or children owning property as tenants
2 22 in common, of a deceased veteran, as defined in for this
2 23 chapter or in section 35.1.
2 24 No more than one tax exemption shall be allowed under this
2 25 section or section 426A.11 in the name of a veteran, as
2 26 defined in for this chapter or in section 35.1.
2 27 Sec. 6. STATE FUNDING. The military service tax credits
2 28 and exemptions provided pursuant to this Act shall be funded
2 29 pursuant to chapter 426A and section 25B.7, subsection 2.
2 30 Sec. 7. APPLICABILITY DATE. This Act applies to military
2 31 service tax exemptions and credits for taxes due and payable
2 32 in fiscal years beginning on or after July 1, 2008.
2 33 EXPLANATION
2 34 Under current law, honorably discharged veterans that serve
2 35 during specific time periods are entitled to a property tax
3 1 exemption of $1,852. This bill increases the exemption amount
3 2 to $2,500. That exemption is made applicable to any resident
3 3 veteran who has served at any time in the armed forces and was
3 4 honorably discharged. The exemption continues to apply to
3 5 members of the national guard and military reserve as under
3 6 current law, but requires 20 years of service or 90 days of
3 7 active duty.
3 8 The bill applies to property taxes due and payable in
3 9 fiscal years beginning on or after July 1, 2008.
3 10 LSB 1149HH 82
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