House File 2745 H-8264 Amend the amendment, H-8263, to House File 2745, as follows: 1 1. By striking page 1, line 1, through page 8, line 35, and 2 inserting: 3 < Amend House File 2745 as follows: 4 1. By striking everything after the enacting clause and 5 inserting: 6 < DIVISION I 7 ADDITIONAL HOMESTEAD PROPERTY TAX CREDIT 8 Section 1. Section 425.17, subsection 2, paragraph a, Code 9 2026, is amended by adding the following new subparagraph: 10 NEW SUBPARAGRAPH . (4) A person filing a claim for credit 11 under this subchapter who has attained the age of eighteen 12 years on or before December 31 of the base year, is domiciled 13 in this state at the time the claim is filed or at the time 14 of the person’s death in the case of a claim filed by the 15 executor or administrator of the claimant’s estate, and 16 if the homestead’s actual value did not increase for the 17 applicable assessment year as the result of new construction, 18 improvements, or renovations to the property, beyond necessary 19 repairs. 20 Sec. 2. Section 425.23, subsection 1, Code 2026, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . d. The tentative credit for a claimant 23 described in section 425.17, subsection 2, paragraph “a” , 24 subparagraph (4), shall be the difference between the actual 25 amount of property taxes due on the homestead during the 26 fiscal year next following the base year minus one hundred 27 four percent of the actual amount of property taxes due on the 28 homestead during the fiscal year immediately preceding such 29 fiscal year, but not less than zero, if the property taxes due 30 on the homestead for both such fiscal years were calculated on 31 an assessed valuation that was not a partial assessment. 32 Sec. 3. IMPLEMENTATION OF ACT. Section 25B.7 shall not 33 apply to this division of this Act. 34 Sec. 4. APPLICABILITY. This division of this Act applies 35 -1- H 8263.3658 (2) 91 md/jh 1/ 9 #1.

to property taxes due and payable in fiscal years beginning on 1 or after July 1, 2027. 2 DIVISION II 3 HOMESTEAD CREDIT AMOUNT 4 Sec. 5. Section 425.1, subsection 2, Code 2026, is amended 5 to read as follows: 6 2. The homestead credit fund shall be apportioned each 7 year so as to give a credit against the tax on each eligible 8 homestead in the state in an amount equal to the actual levy on 9 the first four thousand eight hundred fifty fourteen thousand 10 five hundred fifty dollars of actual value for each homestead. 11 Sec. 6. APPLICABILITY. This division of this Act applies 12 to property taxes due and payable in fiscal years beginning on 13 or after July 1, 2027. 14 DIVISION III 15 ELDERLY ADDITIONAL HOMESTEAD PROPERTY TAX CREDIT 16 Sec. 7. Section 25B.7, subsection 2, paragraph b, Code 2026, 17 is amended to read as follows: 18 b. Low-income property tax credit and elderly and disabled 19 property tax credit pursuant to sections 425.16 through 425.40 , 20 subject to the limitation of section 425.39, subsection 1 , 21 paragraph “b” . 22 Sec. 8. Section 425.17, subsection 2, paragraph a, Code 23 2026, is amended to read as follows: 24 a. “Claimant” means any of the following: 25 (1) A person filing a claim for credit under this subchapter 26 who has attained the age of sixty-five years but who has 27 not attained the age of seventy years on or before December 28 31 of the base year, a person filing a claim for credit or 29 reimbursement under this subchapter who is totally disabled 30 and was totally disabled on or before December 31 of the base 31 year, or a person filing a claim for reimbursement under this 32 subchapter who has attained the age of sixty-five years on or 33 before December 31 of the base year and who is domiciled in 34 this state at the time the claim is filed or at the time of the 35 -2- H 8263.3658 (2) 91 md/jh 2/ 9

person’s death in the case of a claim filed by the executor or 1 administrator of the claimant’s estate. 2 (2) A person filing a claim for credit or reimbursement 3 under this subchapter who has attained the age of twenty-three 4 years on or before December 31 of the base year or was a head 5 of household on December 31 of the base year, as defined in 6 the Internal Revenue Code, but has not attained the age or 7 disability status described in subparagraph (1) or the age 8 status and eligibility criteria of subparagraph (3), and is 9 domiciled in this state at the time the claim is filed or at the 10 time of the person’s death in the case of a claim filed by the 11 executor or administrator of the claimant’s estate, and was not 12 claimed as a dependent on any other person’s tax return for the 13 base year. 14 (3) A person filing a claim for credit under this subchapter 15 who has attained the age of seventy sixty-five years on or 16 before December 31 of the base year , who has a household income 17 of less than two hundred fifty percent of the federal poverty 18 level, as defined by the most recently revised poverty income 19 guidelines published by the United States department of health 20 and human services, and is domiciled in this state at the time 21 the claim is filed or at the time of the person’s death in the 22 case of a claim filed by the executor or administrator of the 23 claimant’s estate. 24 Sec. 9. Section 425.39, subsection 1, Code 2026, is amended 25 to read as follows: 26 1. a. The elderly and disabled property tax credit fund is 27 created. There is appropriated annually from the general fund 28 of the state to the department of revenue to be credited to the 29 elderly and disabled property tax credit fund, from funds not 30 otherwise appropriated, an amount sufficient to implement this 31 subchapter for credits for property taxes due for claimants 32 described in section 425.17, subsection 2 , paragraph “a” , 33 subparagraphs subparagraph (1) and (3), subject to paragraph 34 “b” . There is appropriated annually from the taxpayer relief 35 -3- H 8263.3658 (2) 91 md/jh 3/ 9

fund under section 8.57E to the department of revenue to be 1 credited to the elderly and disabled property tax credit fund, 2 from funds not otherwise appropriated, an amount sufficient 3 to implement this subchapter for credits for property taxes 4 due for claimants described in section 425.17, subsection 2, 5 paragraph “a” , subparagraph (3). 6 b. Regardless of the amount of the credit determined under 7 section 425.23, subsection 1 , paragraph “c” , the amount paid by 8 the director of revenue to each county treasurer for credits 9 for claimants described under section 425.17, subsection 2 , 10 paragraph “a” , subparagraph (3), shall not exceed the amount 11 calculated for the claimant under section 425.23, subsection 1 , 12 paragraph “c” , subparagraph (1), and section 25B.7, subsection 13 1 , shall not apply to the amount of the credit in excess of the 14 amount paid by the director of revenue. 15 Sec. 10. APPLICABILITY. The section of this division 16 of this Act amending section 425.17 applies to claims under 17 chapter 425, subchapter II, filed on or after January 1, 2027. 18 DIVISION IV 19 RESIDENTIAL PROPERTY TAX REBATE 20 Sec. 11. Section 8.57E, subsection 2, paragraph a, Code 21 2026, is amended to read as follows: 22 a. Except as otherwise provided in this section , moneys 23 in the taxpayer relief fund shall only be used pursuant to 24 appropriations or transfers made by the general assembly for 25 tax relief , or reductions in income tax rates , or rebates under 26 section 425B.1 . 27 Sec. 12. NEW SECTION . 425B.1 Residential rebate —— fund 28 —— appropriation. 29 1. As used in this section, “eligibility period” means each 30 fiscal year commencing with the fiscal year beginning July 1, 31 2026, but before the fiscal year beginning July 1, 2028. 32 2. a. A residential rebate fund is created within the 33 state treasury under the control of the department of revenue. 34 For each fiscal year in the eligibility period, there is 35 -4- H 8263.3658 (2) 91 md/jh 4/ 9

appropriated from the taxpayer relief fund under section 8.57E 1 to the department of revenue to be credited to the residential 2 rebate fund, an amount sufficient to implement this chapter for 3 the applicable fiscal year. The department of revenue shall 4 determine the annual appropriation amount. 5 b. Moneys in fund are to be used during the eligibility 6 period to provide residential rebate payments annually to 7 qualified persons as described in this section. 8 3. a. A person owning a homestead qualifies to claim 9 a residential rebate in the amount of one thousand dollars 10 for each fiscal year of the eligibility period the person 11 claimed the homestead credit under chapter 425, in the previous 12 fiscal year. Only one rebate may be claimed for a particular 13 homestead per fiscal year. 14 b. The department shall use homestead property tax credit 15 records from county treasurers to identify and pay residential 16 rebates to qualified owners under this subsection. 17 4. a. A person renting a residence qualifies to claim a 18 residential rebate in the amount of five hundred dollars if the 19 residence is the person’s primary residence. Not more than two 20 rebates may be claimed for a particular rented residence per 21 fiscal year and not more than one rebate may be claimed per 22 familial household per fiscal year. 23 b. A person who wishes to qualify for the residential 24 rebate allowed under this chapter as a renter shall obtain the 25 appropriate forms for claiming the rebate from the department 26 of revenue. The person claiming the rebate shall file a claim 27 form, including a verified statement and designation of primary 28 residence, with the department of revenue for the year for 29 which the person is claiming the rebate. The claim shall be 30 filed no later than September 1 following the fiscal year for 31 which the person is claiming the rebate. 32 5. By January 1 following each fiscal year during the 33 eligibility period, the department of revenue shall make the 34 authorized rebate payments to persons who qualify for the 35 -5- H 8263.3658 (2) 91 md/jh 5/ 9

rebate under this chapter. 1 DIVISION V 2 RETIREMENT SYSTEMS 3 Sec. 13. Section 97A.1, subsection 10, Code 2026, is amended 4 to read as follows: 5 10. “Earnable compensation” or “compensation earnable” 6 shall mean the regular compensation which a member would 7 earn during one year on the basis of the stated compensation 8 for the member’s rank or position including compensation for 9 longevity , any amount received for overtime compensation, 10 and the daily amount received for meals under section 80.6 , 11 and excluding any amount received for overtime compensation 12 or other special additional compensation, other payments for 13 meal expenses, uniform cleaning allowances, travel expenses, 14 and uniform allowances and excluding any amount received upon 15 termination or retirement in payment for accumulated sick leave 16 or vacation. 17 Sec. 14. Section 97B.11, subsection 1, Code 2026, is amended 18 to read as follows: 19 1. a. Each employer shall deduct from the wages of each 20 member of the retirement system a contribution in the amount of 21 the applicable employee percentage of the covered wages paid by 22 the employer and such additional amount if otherwise required 23 by law, until the member’s termination from employment. The 24 contributions of the employer shall be in the amount of the 25 applicable employer percentage of the covered wages of the 26 member and such additional amount if otherwise required by law. 27 b. Beginning July 1, 2026, the contributions of the 28 employer related to a member that is in special service in a 29 protection occupation as described in section 97B.49C for a 30 county or as a county sheriff or deputy sheriff as described 31 in section 97B.49C, shall be paid by the treasurer of state 32 from the general fund of the state. For the fiscal year 33 beginning July 1, 2026, and for each fiscal year thereafter, 34 there is appropriated from the general fund of the state to 35 -6- H 8263.3658 (2) 91 md/jh 6/ 9

the treasurer of state an amount necessary to carry out the 1 provision of this paragraph. 2 Sec. 15. Section 411.1, subsection 10, Code 2026, is amended 3 to read as follows: 4 10. “Earnable compensation” or “compensation earnable” 5 shall mean the annual compensation which a member receives 6 for services rendered as a police officer or fire fighter in 7 the course of employment with a participating city and shall 8 include any amount received as overtime compensation . However, 9 the term “earnable compensation” or “compensation earnable” shall 10 not include amounts received for overtime compensation, meal or 11 travel expenses, uniform allowances, fringe benefits, severance 12 pay, or any amount received upon termination or retirement in 13 payment for accumulated sick leave or vacation. Contributions 14 made by a member from the member’s earnable compensation to a 15 plan of deferred compensation shall be included in earnable 16 compensation. Other contributions made to a plan of deferred 17 compensation shall not be included except to the extent 18 provided in rules adopted by the board of trustees pursuant to 19 section 411.5, subsection 3 . 20 Sec. 16. Section 411.8, subsection 1, paragraphs a, b, c, 21 and d, Code 2026, are amended to read as follows: 22 a. On account of each member there shall be paid annually 23 into the fund by the participating cities or, on or after July 24 1, 2026, by the treasurer of state an amount equal to a certain 25 percentage of the earnable compensation of the member to be 26 known as the “normal contribution”. The rate percent of such 27 contribution shall be fixed on the basis of the liabilities of 28 the retirement system as shown by annual actuarial valuations. 29 Beginning July 1, 2026, that portion of the normal contribution 30 otherwise required to be paid by a participating city into the 31 fund shall be paid by the treasurer of state from the general 32 fund of the state. For the fiscal year beginning July 1, 2026, 33 and for each fiscal year thereafter, there is appropriated from 34 the general fund of the state to the treasurer of state an 35 -7- H 8263.3658 (2) 91 md/jh 7/ 9

amount necessary to carry out the provision of this paragraph 1 “a” . 2 b. (1) On the basis of the actuarial methods and 3 assumptions, rate of interest, and of the mortality, 4 interest and other tables adopted by the system, the actuary 5 engaged by the system to make each valuation required by 6 this chapter pursuant to the requirements of section 411.5 , 7 shall immediately after making such valuation, determine 8 the normal contribution rate. Except as otherwise provided 9 in this lettered paragraph, the “normal contribution rate” 10 shall be the rate percent of the earnable compensation of all 11 members equal to the rate required by the system to discharge 12 its liabilities, stated as a percentage of the earnable 13 compensation of all members, and reduced by the employee 14 contribution rate provided in paragraph “f” of this subsection 15 and the contribution rate representing any state appropriation 16 made . However, the normal contribution rate shall not be less 17 than seventeen percent. 18 (2) The normal contribution rate shall be determined by the 19 actuary after each valuation. 20 c. The total amount payable in each year to the fund 21 shall be not less than the rate percent known as the normal 22 contribution rate of the total compensation earnable by all 23 members during the year, but the aggregate payment by the 24 participating cities or treasurer of state, as applicable, must 25 be sufficient when combined with the amount in the fund to 26 provide the pensions and other benefits payable out of the fund 27 during the then current year. 28 d. All lump-sum death benefits on account of death in active 29 service payable from contributions of the said participating 30 cities or the treasurer of state, as applicable, shall be paid 31 from the fund. > 32 2. Title page, by striking lines 1 through 8 and inserting 33 < An Act relating to local and state government finances 34 by modifying provisions relating to homestead property 35 -8- H 8263.3658 (2) 91 md/jh 8/ 9