House File 773 - Introduced
HOUSE FILE
BY COMMITTEE ON STATE
GOVERNMENT
(SUCCESSOR TO HF 365)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to eligibility of certain members of the armed
2 forces of the United States, the reserve forces of the United
3 States, and the Iowa national guard for the military service
4 tax credit and exemption and providing an effective and an
5 applicability date.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
7 TLSB 1960HV 81
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PAG LIN
1 1 Section 1. Section 426A.11, subsection 2, Code 2005, is
1 2 amended to read as follows:
1 3 2. The property, not to exceed one thousand eight hundred
1 4 fifty=two dollars in taxable value of an honorably separated,
1 5 retired, furloughed to a reserve, placed on inactive status,
1 6 or discharged veteran, as defined in section 35.1, or of a
1 7 member of the reserve forces of the United States who has
1 8 served at least twenty years in the reserve forces after
1 9 January 28, 1973, and who continues to serve in the reserve
1 10 forces, or of a member of the Iowa national guard who has
1 11 served at least twenty years in the Iowa national guard after
1 12 January 28, 1973, and who continues to serve in the Iowa
1 13 national guard.
1 14 Sec. 2. Section 426A.11, Code 2005, is amended by adding
1 15 the following new subsection:
1 16 NEW SUBSECTION. 2A. For purposes of this chapter, unless
1 17 the context otherwise requires, "veteran" also means the
1 18 following:
1 19 a. A resident of this state who is a former member of the
1 20 armed forces of the United States and who served for a minimum
1 21 aggregate of three years and who was discharged under
1 22 honorable conditions.
1 23 b. A former member of the reserve forces of the United
1 24 States or of the Iowa national guard who served on active duty
1 25 for a minimum aggregate of three years and who was discharged
1 26 under honorable conditions.
1 27 Sec. 3. Section 426A.12, Code 2005, is amended to read as
1 28 follows:
1 29 426A.12 EXEMPTIONS TO RELATIVES.
1 30 In case any person in the foregoing classifications does
1 31 not claim the exemption from taxation, it shall be allowed in
1 32 the name of the person to the same extent on the property of
1 33 any one of the following persons in the order named:
1 34 1. The spouse, or surviving spouse remaining unmarried, of
1 35 a veteran, as defined in this chapter or in section 35.1,
2 1 where they are living together or were living together at the
2 2 time of the death of the veteran.
2 3 2. The parent whose spouse is deceased and who remains
2 4 unmarried, of a veteran, as defined in this chapter or in
2 5 section 35.1, whether living or deceased, where the parent is,
2 6 or was at the time of death of the veteran, dependent on the
2 7 veteran for support.
2 8 3. The minor child, or children owning property as tenants
2 9 in common, of a deceased veteran, as defined in this chapter
2 10 or in section 35.1.
2 11 No more than one tax exemption shall be allowed under this
2 12 section or section 426A.11 in the name of a veteran, as
2 13 defined in this chapter or in section 35.1.
2 14 Sec. 4. Section 426A.13, unnumbered paragraphs 1 through
2 15 3, Code 2005, are amended to read as follows:
2 16 A person named in section 426A.11, who is a resident of and
2 17 domiciled in the state of Iowa, shall receive a reduction
2 18 equal to the exemption, to be made from any property owned by
2 19 the person or owned by a family farm corporation of which the
2 20 person is a shareholder and who occupies the property and so
2 21 designated by proceeding as provided in the section. To be
2 22 eligible to receive the exemption the person claiming it shall
2 23 have recorded in the office of the county recorder of the
2 24 county in which is located the property designated for the
2 25 exemption, evidence of property ownership by that person or
2 26 the family farm corporation of which the person is a
2 27 shareholder and the military certificate of satisfactory
2 28 service, order transferring to inactive status, reserve,
2 29 retirement, order of separation from service, honorable
2 30 discharge or a copy of any of these documents of the person
2 31 claiming or through whom is claimed the exemption. In the
2 32 case of a person claiming the exemption for currently serving
2 33 in the reserve forces of the United States or the Iowa
2 34 national guard, the person shall file a statement signed by
2 35 the person's immediate commanding officer.
3 1 The person shall file with the appropriate assessor on
3 2 forms obtained from the assessor the claim for exemption for
3 3 the year for which the person is first claiming the exemption.
3 4 The claim shall be filed not later than July 1 of the year for
3 5 which the person is claiming the exemption. The claim shall
3 6 set out the fact that the person is a resident of and
3 7 domiciled in the state of Iowa, and a person within the terms
3 8 of section 426A.11, and shall give the volume and page on
3 9 which the certificate of satisfactory service, order of
3 10 separation, retirement, furlough to reserve, inactive status,
3 11 or honorable discharge or certified copy thereof is recorded
3 12 in the office of the county recorder, and may include the
3 13 designation of the property from which the exemption is to be
3 14 made, and shall further state that the claimant is the
3 15 equitable or legal owner of the property designated or if the
3 16 property is owned by a family farm corporation, that the
3 17 person is a shareholder of that corporation and that the
3 18 person occupies the property. In the case of a person
3 19 claiming the exemption for currently serving in the reserve
3 20 forces of the United States or the Iowa national guard, the
3 21 person shall file a statement signed by the person's immediate
3 22 commanding officer.
3 23 Upon the filing and allowance of the claim, the claim shall
3 24 be allowed to that person for successive years without further
3 25 filing. However, in the case of a person currently serving in
3 26 the reserve forces of the United States or the Iowa national
3 27 guard, such person shall file each year to be eligible to
3 28 obtain the exemption. Provided, that notwithstanding the
3 29 filing or having on file a claim for exemption, the person or
3 30 person's spouse is the legal or equitable owner of the
3 31 property on July 1 of the year for which the claim is allowed.
3 32 When the property is sold or transferred or the person wishes
3 33 to designate different property for the exemption, a person
3 34 who wishes to receive the exemption shall refile for the
3 35 exemption. A person who sells or transfers property which is
4 1 designated for the exemption or the personal representative of
4 2 a deceased person who owned such property shall provide
4 3 written notice to the assessor that the property is no longer
4 4 legally or equitably owned by the former claimant.
4 5 Sec. 5. STATE FUNDING. The military service tax credits
4 6 and exemptions provided pursuant to this Act shall be funded
4 7 pursuant to chapter 426A and section 25B.7, subsection 2.
4 8 Sec. 6. EFFECTIVE AND APPLICABILITY DATE. This Act, being
4 9 deemed of immediate importance, takes effect upon enactment
4 10 and applies to military service tax exemptions for fiscal
4 11 years beginning on or after July 1, 2005.
4 12 EXPLANATION
4 13 This bill expands eligibility for the military service
4 14 property tax credit and exemption to members of the reserve
4 15 forces of the United States and members of the Iowa national
4 16 guard who have served 20 years after January 28, 1973, and who
4 17 continue to serve in the reserves or the Iowa national guard.
4 18 The bill also makes eligible for the credit and exemption a
4 19 former member of the armed forces who served a minimum of
4 20 three years and was honorably discharged. The bill also makes
4 21 eligible former members of the reserve forces or the Iowa
4 22 national guard who served on active duty for a minimum of
4 23 three years and who were honorably discharged. The military
4 24 service property tax exemption is applied as a credit on the
4 25 property tax statement.
4 26 In response to the requirements of Code section 25B.7, the
4 27 military service tax credits and exemptions resulting from
4 28 this bill are funded as provided in Code chapter 426A.
4 29 The bill takes effect upon enactment and applies to
4 30 exemptions for fiscal years beginning on or after July 1,
4 31 2005.
4 32 LSB 1960HV 81
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