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