Senate File 2223 - Introduced SENATE FILE 2223 BY ANDERSON A BILL FOR An Act relating to the additional homestead property tax credit 1 for disabled veterans and including applicability date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5864XS (3) 85 md/sc

S.F. 2223 Section 1. Section 425.15, Code 2014, is amended to read as 1 follows: 2 425.15 Disabled veteran tax credit. 3 If the owner of a homestead allowed a credit under this 4 chapter is a veteran of any of the military forces of the 5 United States, who acquired the homestead under 38 U.S.C. 6 § 21.801, 21.802, prior to August 6, 1991, or 38 U.S.C. § 2101 , 7 through 2102 , or a veteran as defined in section 35.1, with 8 a service-connected disability, as certified by the United 9 States department of veterans affairs , the amount of the 10 credit allowed on the homestead from the homestead credit fund 11 shall be the entire amount a percentage of the tax levied 12 on the homestead , after subtracting the regular homestead 13 credit allowed under section 425.1, that is equivalent to the 14 veteran’s service-connected disability rating percentage . The 15 credit allowed shall be continued to the estate of a veteran 16 who is deceased or the surviving spouse and any child, as 17 defined in section 234.1 , who are the beneficiaries of a 18 deceased veteran, so long as the surviving spouse remains 19 unmarried. This section is not applicable to the holder 20 of title to any homestead whose annual income, together 21 with that of the titleholder’s spouse, if any, for the last 22 preceding twelve-month income tax accounting period exceeds 23 thirty-five thousand dollars. For the purpose of this section 24 “income” means taxable income for federal income tax purposes 25 plus income from securities of state and other political 26 subdivisions exempt from federal income tax. A veteran or 27 a beneficiary of a veteran who elects to secure the credit 28 provided in this section is not eligible for any other real 29 property tax exemption provided by law for veterans of military 30 service. If a veteran’s service-connected disability rating 31 percentage changes, the veteran shall provide written notice to 32 the assessor by July 1 following the date on which the rating 33 percentage is changed. If a veteran acquires a different 34 homestead, the credit allowed under this section may be claimed 35 -1- LSB 5864XS (3) 85 md/sc 1/ 2

S.F. 2223 on the new homestead unless the veteran fails to meet the other 1 requirements of this section . 2 Sec. 2. APPLICABILITY. This Act applies to property taxes 3 due and payable in fiscal years beginning on or after July 1, 4 2015. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 The disabled veterans tax credit under Code section 425.15 9 provides a property tax credit equal to the entire amount of 10 the tax levied on the homestead of a veteran who acquired the 11 homestead under specified federal programs, and who has an 12 income of $35,000 or less. 13 This bill provides that in addition to those veterans who 14 acquired their homestead under a specified government program, 15 the credit is also allowed for a veteran, as defined in 16 Code section 35.1, who has a service-connected disability as 17 certified by the United States department of veterans affairs. 18 The credit allowed on the homestead is an amount equal to a 19 percentage of the amount of the tax levied on the homestead 20 that is equivalent to the veteran’s permanent service-connected 21 disability rating percentage. 22 The bill also strikes the income limitation qualifications 23 for the disabled veteran tax credit and strikes a provision 24 making the veteran receiving this credit ineligible for any 25 other property tax exemption. 26 Code section 25B.7 provides that if a state appropriation 27 made to fund the credit or exemption is not sufficient to fully 28 fund the credit or exemption, the political subdivision shall 29 be required to extend to the taxpayer only that portion of the 30 credit or exemption estimated by the department of revenue to 31 be funded by the state appropriation. 32 The bill applies to property taxes due and payable in fiscal 33 years beginning on or after July 1, 2015. 34 -2- LSB 5864XS (3) 85 md/sc 2/ 2