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
  8 sc/cf/24

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
  4 33 sc:rj/cf/24