House File 2745 H-8263 Amend House File 2745 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 ADDITIONAL HOMESTEAD PROPERTY TAX CREDIT 5 Section 1. Section 425.17, subsection 2, paragraph a, Code 6 2026, is amended by adding the following new subparagraph: 7 NEW SUBPARAGRAPH . (4) A person filing a claim for credit 8 under this subchapter who has attained the age of eighteen 9 years on or before December 31 of the base year, is domiciled 10 in this state at the time the claim is filed or at the time 11 of the person’s death in the case of a claim filed by the 12 executor or administrator of the claimant’s estate, and 13 if the homestead’s actual value did not increase for the 14 applicable assessment year as the result of new construction, 15 improvements, or renovations to the property, beyond necessary 16 repairs. 17 Sec. 2. Section 425.23, subsection 1, Code 2026, is amended 18 by adding the following new paragraph: 19 NEW PARAGRAPH . d. The tentative credit for a claimant 20 described in section 425.17, subsection 2, paragraph “a” , 21 subparagraph (4), shall be the difference between the actual 22 amount of property taxes due on the homestead during the 23 fiscal year next following the base year minus one hundred 24 four percent of the actual amount of property taxes due on the 25 homestead during the fiscal year immediately preceding such 26 fiscal year, but not less than zero, if the property taxes due 27 on the homestead for both such fiscal years were calculated on 28 an assessed valuation that was not a partial assessment. 29 Sec. 3. IMPLEMENTATION OF ACT. Section 25B.7 shall not 30 apply to this division of this Act. 31 Sec. 4. APPLICABILITY. This division of this Act applies 32 to property taxes due and payable in fiscal years beginning on 33 or after July 1, 2027. 34 DIVISION II 35 -1- HF 2745.3622 (1) 91 md/jh 1/ 9 #1.

HOMESTEAD CREDIT AMOUNT 1 Sec. 5. Section 425.1, subsection 2, Code 2026, is amended 2 to read as follows: 3 2. The homestead credit fund shall be apportioned each 4 year so as to give a credit against the tax on each eligible 5 homestead in the state in an amount equal to the actual levy on 6 the first four thousand eight hundred fifty fourteen thousand 7 five hundred fifty dollars of actual value for each homestead. 8 Sec. 6. APPLICABILITY. This division of this Act applies 9 to property taxes due and payable in fiscal years beginning on 10 or after July 1, 2027. 11 DIVISION III 12 ELDERLY ADDITIONAL HOMESTEAD PROPERTY TAX CREDIT 13 Sec. 7. Section 25B.7, subsection 2, paragraph b, Code 2026, 14 is amended to read as follows: 15 b. Low-income property tax credit and elderly and disabled 16 property tax credit pursuant to sections 425.16 through 425.40 , 17 subject to the limitation of section 425.39, subsection 1 , 18 paragraph “b” . 19 Sec. 8. Section 425.17, subsection 2, paragraph a, Code 20 2026, is amended to read as follows: 21 a. “Claimant” means any of the following: 22 (1) A person filing a claim for credit under this subchapter 23 who has attained the age of sixty-five years but who has 24 not attained the age of seventy years on or before December 25 31 of the base year, a person filing a claim for credit or 26 reimbursement under this subchapter who is totally disabled 27 and was totally disabled on or before December 31 of the base 28 year, or a person filing a claim for reimbursement under this 29 subchapter who has attained the age of sixty-five years on or 30 before December 31 of the base year and who is domiciled in 31 this state at the time the claim is filed or at the time of the 32 person’s death in the case of a claim filed by the executor or 33 administrator of the claimant’s estate. 34 (2) A person filing a claim for credit or reimbursement 35 -2- HF 2745.3622 (1) 91 md/jh 2/ 9

under this subchapter who has attained the age of twenty-three 1 years on or before December 31 of the base year or was a head 2 of household on December 31 of the base year, as defined in 3 the Internal Revenue Code, but has not attained the age or 4 disability status described in subparagraph (1) or the age 5 status and eligibility criteria of subparagraph (3), and is 6 domiciled in this state at the time the claim is filed or at the 7 time of the person’s death in the case of a claim filed by the 8 executor or administrator of the claimant’s estate, and was not 9 claimed as a dependent on any other person’s tax return for the 10 base year. 11 (3) A person filing a claim for credit under this subchapter 12 who has attained the age of seventy sixty-five years on or 13 before December 31 of the base year , who has a household income 14 of less than two hundred fifty percent of the federal poverty 15 level, as defined by the most recently revised poverty income 16 guidelines published by the United States department of health 17 and human services, and is domiciled in this state at the time 18 the claim is filed or at the time of the person’s death in the 19 case of a claim filed by the executor or administrator of the 20 claimant’s estate. 21 Sec. 9. Section 425.39, subsection 1, Code 2026, is amended 22 to read as follows: 23 1. a. The elderly and disabled property tax credit fund is 24 created. There is appropriated annually from the general fund 25 of the state to the department of revenue to be credited to the 26 elderly and disabled property tax credit fund, from funds not 27 otherwise appropriated, an amount sufficient to implement this 28 subchapter for credits for property taxes due for claimants 29 described in section 425.17, subsection 2 , paragraph “a” , 30 subparagraphs subparagraph (1) and (3), subject to paragraph 31 “b” . There is appropriated annually from the taxpayer relief 32 fund under section 8.57E to the department of revenue to be 33 credited to the elderly and disabled property tax credit fund, 34 from funds not otherwise appropriated, an amount sufficient 35 -3- HF 2745.3622 (1) 91 md/jh 3/ 9

to implement this subchapter for credits for property taxes 1 due for claimants described in section 425.17, subsection 2, 2 paragraph “a” , subparagraph (3). 3 b. Regardless of the amount of the credit determined under 4 section 425.23, subsection 1 , paragraph “c” , the amount paid by 5 the director of revenue to each county treasurer for credits 6 for claimants described under section 425.17, subsection 2 , 7 paragraph “a” , subparagraph (3), shall not exceed the amount 8 calculated for the claimant under section 425.23, subsection 1 , 9 paragraph “c” , subparagraph (1), and section 25B.7, subsection 10 1 , shall not apply to the amount of the credit in excess of the 11 amount paid by the director of revenue. 12 Sec. 10. APPLICABILITY. The section of this division 13 of this Act amending section 425.17 applies to claims under 14 chapter 425, subchapter II, filed on or after January 1, 2027. 15 DIVISION IV 16 RESIDENTIAL PROPERTY TAX REBATE 17 Sec. 11. Section 8.57E, subsection 2, paragraph a, Code 18 2026, is amended to read as follows: 19 a. Except as otherwise provided in this section , moneys 20 in the taxpayer relief fund shall only be used pursuant to 21 appropriations or transfers made by the general assembly for 22 tax relief , or reductions in income tax rates , or rebates under 23 section 425B.1 . 24 Sec. 12. NEW SECTION . 425B.1 Residential rebate —— fund 25 —— appropriation. 26 1. As used in this section, “eligibility period” means each 27 fiscal year commencing with the fiscal year beginning July 1, 28 2026, but before the fiscal year beginning July 1, 2028. 29 2. a. A residential rebate fund is created within the 30 state treasury under the control of the department of revenue. 31 For each fiscal year in the eligibility period, there is 32 appropriated from the taxpayer relief fund under section 8.57E 33 to the department of revenue to be credited to the residential 34 rebate fund, an amount sufficient to implement this chapter for 35 -4- HF 2745.3622 (1) 91 md/jh 4/ 9

the applicable fiscal year. The department of revenue shall 1 determine the annual appropriation amount. 2 b. Moneys in fund are to be used during the eligibility 3 period to provide residential rebate payments annually to 4 qualified persons as described in this section. 5 3. a. A person owning a homestead qualifies to claim 6 a residential rebate in the amount of one thousand dollars 7 for each fiscal year of the eligibility period the person 8 claimed the homestead credit under chapter 425, in the previous 9 fiscal year. Only one rebate may be claimed for a particular 10 homestead per fiscal year. 11 b. The department shall use homestead property tax credit 12 records from county treasurers to identify and pay residential 13 rebates to qualified owners under this subsection. 14 4. a. A person renting a residence qualifies to claim a 15 residential rebate in the amount of five hundred dollars if the 16 residence is the person’s primary residence. Not more than two 17 rebates may be claimed for a particular rented residence per 18 fiscal year and not more than one rebate may be claimed per 19 familial household per fiscal year. 20 b. A person who wishes to qualify for the residential 21 rebate allowed under this chapter as a renter shall obtain the 22 appropriate forms for claiming the rebate from the department 23 of revenue. The person claiming the rebate shall file a claim 24 form, including a verified statement and designation of primary 25 residence, with the department of revenue for the year for 26 which the person is claiming the rebate. The claim shall be 27 filed no later than September 1 following the fiscal year for 28 which the person is claiming the rebate. 29 5. By January 1 following each fiscal year during the 30 eligibility period, the department of revenue shall make the 31 authorized rebate payments to persons who qualify for the 32 rebate under this chapter. 33 DIVISION V 34 RETIREMENT SYSTEMS 35 -5- HF 2745.3622 (1) 91 md/jh 5/ 9

Sec. 13. Section 97A.1, subsection 10, Code 2026, is amended 1 to read as follows: 2 10. “Earnable compensation” or “compensation earnable” 3 shall mean the regular compensation which a member would 4 earn during one year on the basis of the stated compensation 5 for the member’s rank or position including compensation for 6 longevity , any amount received for overtime compensation, 7 and the daily amount received for meals under section 80.6 , 8 and excluding any amount received for overtime compensation 9 or other special additional compensation, other payments for 10 meal expenses, uniform cleaning allowances, travel expenses, 11 and uniform allowances and excluding any amount received upon 12 termination or retirement in payment for accumulated sick leave 13 or vacation. 14 Sec. 14. Section 97B.11, subsection 1, Code 2026, is amended 15 to read as follows: 16 1. a. Each employer shall deduct from the wages of each 17 member of the retirement system a contribution in the amount of 18 the applicable employee percentage of the covered wages paid by 19 the employer and such additional amount if otherwise required 20 by law, until the member’s termination from employment. The 21 contributions of the employer shall be in the amount of the 22 applicable employer percentage of the covered wages of the 23 member and such additional amount if otherwise required by law. 24 b. Beginning July 1, 2026, the contributions of the 25 employer related to a member that is in special service in a 26 protection occupation as described in section 97B.49C for a 27 county or as a county sheriff or deputy sheriff as described 28 in section 97B.49C, shall be paid by the treasurer of state 29 from the general fund of the state. For the fiscal year 30 beginning July 1, 2026, and for each fiscal year thereafter, 31 there is appropriated from the general fund of the state to 32 the treasurer of state an amount necessary to carry out the 33 provision of this paragraph. 34 Sec. 15. Section 411.1, subsection 10, Code 2026, is amended 35 -6- HF 2745.3622 (1) 91 md/jh 6/ 9

to read as follows: 1 10. “Earnable compensation” or “compensation earnable” 2 shall mean the annual compensation which a member receives 3 for services rendered as a police officer or fire fighter in 4 the course of employment with a participating city and shall 5 include any amount received as overtime compensation . However, 6 the term “earnable compensation” or “compensation earnable” shall 7 not include amounts received for overtime compensation, meal or 8 travel expenses, uniform allowances, fringe benefits, severance 9 pay, or any amount received upon termination or retirement in 10 payment for accumulated sick leave or vacation. Contributions 11 made by a member from the member’s earnable compensation to a 12 plan of deferred compensation shall be included in earnable 13 compensation. Other contributions made to a plan of deferred 14 compensation shall not be included except to the extent 15 provided in rules adopted by the board of trustees pursuant to 16 section 411.5, subsection 3 . 17 Sec. 16. Section 411.8, subsection 1, paragraphs a, b, c, 18 and d, Code 2026, are amended to read as follows: 19 a. On account of each member there shall be paid annually 20 into the fund by the participating cities or, after June 30, 21 2026, by the treasurer of state an amount equal to a certain 22 percentage of the earnable compensation of the member to be 23 known as the “normal contribution”. The rate percent of such 24 contribution shall be fixed on the basis of the liabilities of 25 the retirement system as shown by annual actuarial valuations. 26 Beginning July 1, 2026, that portion of the normal contribution 27 otherwise required to be paid by a participating city into the 28 fund shall be paid by the treasurer of state from the general 29 fund of the state. For the fiscal year beginning July 1, 2026, 30 and for each fiscal year thereafter, there is appropriated from 31 the general fund of the state to the treasurer of state an 32 amount necessary to carry out the provision of this paragraph 33 “a” . 34 b. (1) On the basis of the actuarial methods and 35 -7- HF 2745.3622 (1) 91 md/jh 7/ 9

assumptions, rate of interest, and of the mortality, 1 interest and other tables adopted by the system, the actuary 2 engaged by the system to make each valuation required by 3 this chapter pursuant to the requirements of section 411.5 , 4 shall immediately after making such valuation, determine 5 the normal contribution rate. Except as otherwise provided 6 in this lettered paragraph, the “normal contribution rate” 7 shall be the rate percent of the earnable compensation of all 8 members equal to the rate required by the system to discharge 9 its liabilities, stated as a percentage of the earnable 10 compensation of all members, and reduced by the employee 11 contribution rate provided in paragraph “f” of this subsection 12 and the contribution rate representing any state appropriation 13 made . However, the normal contribution rate shall not be less 14 than seventeen percent. 15 (2) The normal contribution rate shall be determined by the 16 actuary after each valuation. 17 c. The total amount payable in each year to the fund 18 shall be not less than the rate percent known as the normal 19 contribution rate of the total compensation earnable by all 20 members during the year, but the aggregate payment by the 21 participating cities or treasurer of state, as applicable, must 22 be sufficient when combined with the amount in the fund to 23 provide the pensions and other benefits payable out of the fund 24 during the then current year. 25 d. All lump-sum death benefits on account of death in active 26 service payable from contributions of the said participating 27 cities or the treasurer of state, as applicable, shall be paid 28 from the fund. > 29 2. Title page, by striking lines 1 through 8 and inserting 30 < An Act relating to local and state government finances 31 by modifying provisions relating to homestead property 32 tax credits, providing a residential property tax rebate, 33 modifying provisions relating to retirement systems, making 34 appropriations, and including applicability provisions. > 35 -8- HF 2745.3622 (1) 91 md/jh 8/ 9