Senate File 2111

                                       SENATE FILE       
                                       BY  BEALL, WARNSTADT, QUIRMBACH,
                                           SENG, DOTZLER, HATCH,
                                           COURTNEY, HOLVECK, McCOY,
                                           KIBBIE, GRONSTAL, CONNELLY,
                                           DVORSKY, STEWART, RAGAN,
                                           KREIMAN, HORN, PUTNEY,
                                           SHULL, and KETTERING

    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         

                                      A BILL FOR

  1 An Act relating to the filing of a claim for military service tax
  2    exemptions by members of the reserved forces of the United
  3    States and Iowa national guard who are ordered to active duty
  4    and including effective and applicability date provisions.
  6 TLSB 5640SS 80
  7 mg/pj/5


  1  1    Section 1.  Section 426A.13, unnumbered paragraphs 2 and 3,
  1  2 Code 2003, are amended to read as follows:
  1  3    The person shall file with the appropriate assessor on
  1  4 forms obtained from the assessor the claim for exemption for
  1  5 the year for which the person is first claiming the exemption.
  1  6 The claim shall be filed not later than July 1 of the year for
  1  7 which the person is claiming the exemption.  The claim shall
  1  8 set out the fact that the person is a resident of and
  1  9 domiciled in the state of Iowa, and a person within the terms
  1 10 of section 426A.11, and shall give the volume and page on
  1 11 which the certificate of satisfactory service, order of
  1 12 separation, retirement, furlough to reserve, inactive status,
  1 13 or honorable discharge or certified copy thereof is recorded
  1 14 in the office of the county recorder, and may include the
  1 15 designation of the property from which the exemption is to be
  1 16 made, and shall further state that the claimant is the
  1 17 equitable or legal owner of the property designated or if the
  1 18 property is owned by a family farm corporation, that the
  1 19 person is a shareholder of that corporation and that the
  1 20 person occupies the property.  However, a member of the
  1 21 reserve forces of the United States or the Iowa national guard
  1 22 who has not otherwise qualified as a veteran may file an
  1 23 application for a claim upon receipt of orders calling the
  1 24 member to active duty.  If at the end of the term of active
  1 25 duty the member will have qualified for the exemption, the
  1 26 claim shall be approved subject to the setting aside of the
  1 27 allowance of the claim as provided in section 426A.6.
  1 28    Upon the filing and allowance of the claim, the claim shall
  1 29 be allowed to that person for successive years without further
  1 30 filing.  However, for a person whose claim was allowed because
  1 31 the person was a member of the reserve forces of the United
  1 32 States or Iowa national guard who was ordered to active duty,
  1 33 the claim shall be valid for no more than one additional year.
  1 34 After that year, the person shall refile for the exemption.
  1 35 Provided, that notwithstanding the filing or having on file a
  2  1 claim for exemption, the person or person's spouse is the
  2  2 legal or equitable owner of the property on July 1 of the year
  2  3 for which the claim is allowed.  When the property is sold or
  2  4 transferred or the person wishes to designate different
  2  5 property for the exemption, a person who wishes to receive the
  2  6 exemption shall refile for the exemption.  A person who sells
  2  7 or transfers property which is designated for the exemption or
  2  8 the personal representative of a deceased person who owned
  2  9 such property shall provide written notice to the assessor
  2 10 that the property is no longer legally or equitably owned by
  2 11 the former claimant.
  2 12    Sec. 2.  EFFECTIVE AND APPLICABILITY DATE.  This Act, being
  2 13 deemed of immediate importance, takes effect upon enactment
  2 14 and applies to exemptions for fiscal years beginning on or
  2 15 after July 1, 2004.
  2 16                           EXPLANATION
  2 17    This bill allows a member of the reserve forces of the
  2 18 United States or Iowa national guard who does not otherwise
  2 19 qualify for the military service tax exemption to file for a
  2 20 claim and receive the exemption if the member receives orders
  2 21 calling the member to active duty for a period that will
  2 22 qualify the member for the exemption upon completion of the
  2 23 active duty.  The exemption will be approved subject to the
  2 24 threat of the exemption being set aside if the member does not
  2 25 later qualify.  The approval is valid for only two years.
  2 26    The bill takes effect upon enactment and applies to
  2 27 exemptions for fiscal years beginning on or after July 1,
  2 28 2004.
  2 29 LSB 5640SS 80
  2 30 mg/pj/5