House File 145 - Introduced HOUSE FILE BY MAY Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the taxation of a homestead owned by a 2 disabled veteran and including effective date and 3 applicability date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1316YH 83 6 md/sc:mg/5 PAG LIN 1 1 Section 1. Section 425.15, Code 2009, is amended to read 1 2 as follows: 1 3 425.15 DISABLED VETERAN TAX CREDIT. 1 4 If the owner of a homestead allowed a credit under this 1 5 chapter is a veteran of any of the military forces of the 1 6 United States, who acquired the homestead under 38 U.S.C. } 1 7 21.801, 21.802, prior to August 6, 1991, or 38 U.S.C. } 2101, 1 8 2102, the credit allowed on the homestead from the homestead 1 9 credit fund shall be the entire amount of the tax levied on 1 10 the homestead. The credit allowed shall be continued to the 1 11 estate of a veteran who is deceased or the surviving spouse 1 12 and any child, as defined in section 234.1, who are the 1 13 beneficiaries of a deceased veteran, so long as the surviving 1 14 spouse remains unmarried. This section is not applicable to 1 15 the holder of title to any homestead whose annual income, 1 16 together with that of the titleholder's spouse, if any, for 1 17 the last preceding twelve=month income tax accounting period 1 18 exceeds thirty=five thousand dollars. For the purpose of this 1 19 section "income" means taxable income for federal income tax 1 20 purposes plus income from securities of state and other 1 21 political subdivisions exempt from federal income tax. A 1 22 veteran or a beneficiary of a veteran who elects to secure the 1 23 credit provided in this section is not eligible for any other 1 24 real property tax exemption provided by law for veterans of 1 25 military service. If a veteran acquires a different 1 26 homestead, the credit allowed under this section may be 1 27 claimed on the new homestead unless the veteran fails to meet 1 28 the other requirements of this section. 1 29 Sec. 2. Section 427.1, Code 2009, is amended by adding the 1 30 following new subsection: 1 31 NEW SUBSECTION. 37. HOMESTEAD OF A DISABLED VETERAN. A 1 32 homestead, as defined in section 425.11, subsection 3, owned 1 33 by a disabled veteran or the disabled veteran's spouse, 1 34 subject to the requirements of this subsection. 1 35 a. (1) If the veteran has a disability rating of at least 2 1 seventy percent and less than one hundred percent, as 2 2 certified by the United States veterans administration, the 2 3 first one hundred and fifty thousand dollars of the 2 4 homestead's assessed value shall be exempt from taxation. 2 5 (2) If the veteran has a disability rating of one hundred 2 6 percent, as certified by the United States veterans 2 7 administration, the first three hundred thousand dollars of 2 8 the homestead's assessed value shall be exempt from taxation. 2 9 b. To qualify for the exemption under this subsection, all 2 10 of the following conditions must be met: 2 11 (1) The veteran was honorably discharged from the United 2 12 States armed forces. 2 13 (2) The veteran is certified by the United States veterans 2 14 administration as having a service=connected disability. The 2 15 certification shall specify the disability rating of the 2 16 veteran. 2 17 c. The veteran shall file with the county assessor not 2 18 later than February 1 of the year for which the exemption is 2 19 requested, a statement upon forms to be prescribed by the 2 20 director of revenue. Upon the filing and allowance of the 2 21 claim, the exemption shall be allowed on the disabled 2 22 veteran's homestead for successive years without further 2 23 filing as long as the property is legally and equitably owned 2 24 and used as a homestead by the disabled veteran on July 1 of 2 25 each of those successive years. The exemption allowed under 2 26 this subsection shall be continued to the estate of a disabled 2 27 veteran who is deceased or the surviving spouse and any child, 2 28 as defined in section 234.1, who are the beneficiaries of the 2 29 deceased veteran, so long as the surviving spouse remains 2 30 unmarried. 2 31 d. A property qualifying for an exemption under this 2 32 subsection is not eligible for the credit under section 2 33 425.15. 2 34 Sec. 3. IMPLEMENTATION. Section 25B.7 does not apply to 2 35 the property tax exemption enacted in this Act. 3 1 Sec. 4. DEADLINE EXTENSION. Notwithstanding the filing 3 2 deadline in section 427.1, subsection 37, as enacted by this 3 3 Act, a statement that is requesting an exemption for property 3 4 taxes due and payable in the fiscal year beginning July 1, 3 5 2010, shall be filed not later than October 1, 2009. 3 6 Sec. 5. EFFECTIVE AND APPLICABILITY DATES. This Act, 3 7 being deemed of immediate importance, takes effect upon 3 8 enactment and applies to property taxes due and payable in 3 9 fiscal years beginning on or after July 1, 2010. 3 10 EXPLANATION 3 11 This bill provides a property tax exemption for a homestead 3 12 owned by a disabled veteran or the disabled veteran's spouse. 3 13 Under the bill, if the veteran has a disability rating of at 3 14 least 70 percent and less than 100 percent, the first $150,000 3 15 of the homestead's assessed value is exempt from taxation. If 3 16 the veteran has a disability rating of 100 percent, the first 3 17 $300,000 of the homestead's assessed value is exempt from 3 18 taxation. 3 19 To be eligible, the veteran must have been honorably 3 20 discharged from the United States armed forces and must be 3 21 certified by the United States veterans administration as 3 22 having a service=connected disability. The bill requires the 3 23 disabled veteran to file a claim with the county assessor not 3 24 later than February 1 of the year for which the exemption is 3 25 requested. The bill allows the exemption for successive years 3 26 without further filing as long as the property is legally and 3 27 equitably owned and used as a homestead by the disabled 3 28 veteran on July 1 of each of those successive years. The bill 3 29 also allows the exemption to continue to the estate of a 3 30 disabled veteran who is deceased or the surviving spouse and 3 31 any child who are the beneficiaries of the deceased veteran, 3 32 so long as the surviving spouse remains unmarried. 3 33 The bill provides that a property qualifying for an 3 34 exemption under the bill is not eligible for the disabled 3 35 veteran tax credit under Code section 425.15. 4 1 Code section 25B.7 does not apply to the property tax 4 2 exemption in the bill. That Code section requires state 4 3 funding to implement a property tax exemption. 4 4 The bill updates references to federal veterans' benefits 4 5 programs under Code section 425.15. 4 6 The bill provides a filing deadline of October 1, 2009, for 4 7 an exemption applicable to property taxes due and payable in 4 8 the fiscal year beginning July 1, 2010. 4 9 The bill takes effect upon enactment and applies to 4 10 property taxes due and payable in fiscal years beginning on or 4 11 after July 1, 2010. 4 12 LSB 1316YH 83 4 13 md/sc:mg/5