Senate
File
280
-
Introduced
SENATE
FILE
280
BY
COMMITTEE
ON
VETERANS
AFFAIRS
(SUCCESSOR
TO
SSB
1138)
A
BILL
FOR
An
Act
relating
to
the
military
service
property
tax
exemption
1
and
credit
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1476SV
(1)
90
md/jh
S.F.
280
Section
1.
Section
426A.11,
subsection
1,
Code
2023,
is
1
amended
by
striking
the
subsection.
2
Sec.
2.
Section
426A.11,
subsection
2,
Code
2023,
is
amended
3
to
read
as
follows:
4
2.
The
property,
not
to
exceed
one
thousand
eight
hundred
5
fifty-two
four
thousand
dollars
in
taxable
value,
of
an
6
honorably
separated,
retired,
furloughed
to
a
reserve,
placed
7
on
inactive
status,
or
discharged
veteran,
as
defined
in
8
section
35.1,
subsection
2
,
paragraph
“a”
or
“b”
.
9
Sec.
3.
APPLICABILITY.
This
Act
applies
to
property
taxes
10
due
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
11
2023.
12
EXPLANATION
13
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
14
the
explanation’s
substance
by
the
members
of
the
general
assembly.
15
This
bill
relates
to
the
military
service
property
tax
16
exemption
and
credit.
17
Under
current
law,
veterans
of
World
War
I
are
entitled
18
to
a
property
tax
exemption
of
$2,778
in
taxable
value
and
19
honorably
discharged
veterans
who
served
during
other
specific
20
time
periods
are
entitled
to
a
property
tax
exemption
of
$1,852
21
in
taxable
value.
The
bill
increases
the
exemption
amount
for
22
all
eligible
veterans
to
$4,000.
23
Under
current
law,
the
state
provides
funding
to
local
24
governments
for
the
military
service
property
tax
exemption
25
and
credit
up
to
$6.92
per
$1,000
of
assessed
value
of
the
26
exempt
property.
Code
section
25B.7
provides
that
if
a
27
state
appropriation
made
to
fund
a
credit
or
exemption
is
not
28
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
29
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
30
that
portion
of
the
credit
or
exemption
estimated
by
the
31
department
of
revenue
to
be
funded
by
the
state
appropriation.
32
The
requirement
for
fully
funding
and
the
consequences
of
not
33
fully
funding
under
Code
section
25B.7
apply
to
the
military
34
service
property
tax
credit
and
exemption
to
the
extent
of
35
-1-
LSB
1476SV
(1)
90
md/jh
1/
2
S.F.
280
$6.92
per
$1,000
of
assessed
value
of
the
exempt
property.
1
The
bill
applies
to
property
taxes
due
and
payable
in
fiscal
2
years
beginning
on
or
after
July
1,
2023.
3
-2-
LSB
1476SV
(1)
90
md/jh
2/
2