HF 2237 (LSB 5968YH (4) 83)

HOUSE FILE 2237

BY  WINDSCHITL, ZIRKELBACH, and CHAMBERS

A BILL FOR

An Act relating to an additional homestead credit available to disabled veterans and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  425.15A  Disabled veteran tax freeze.  
   1.  For purposes of this section, unless the context otherwise requires:
   a.  “Base year” means the fiscal year immediately preceding the first fiscal year in which the additional homestead credit under this section is allowed on the disabled veteran’s homestead.
   b.  “Disabled veteran” means either of the following:
   (1)  A veteran who is entitled to compensation or who, but for the receipt of military retirement pay, would be entitled to compensation under laws administered by the secretary of the United States department of veterans affairs.
   (2)  A person who was discharged or released from active duty because of a service-connected disability.
   2.  A disabled veteran who is eligible for the credit allowed under section 425.1 may claim an additional homestead credit pursuant to this section. To claim the credit under this section, the disabled veteran shall file on or before June 30 of the base year for which the veteran is first claiming the credit. The amount of the credit equals the amount of property taxes, less the regular homestead credit allowed under section 425.1, due and payable in the coming fiscal year that exceeds the amount of property taxes, less the regular homestead credit allowed under section 425.1, that were due and payable in the base year. The credit under this section is payable from the homestead credit fund created in section 425.1.
   3.  Upon the filing and allowance of the claim, the claim shall be allowed on the disabled veteran’s homestead for successive years without further filing as long as the property is legally and equitably owned and used as a homestead by the disabled veteran on July 1 of each of those successive years. The credit allowed shall be continued to the estate of the disabled veteran who is deceased or the surviving spouse and any child, as defined in section 234.1, who are the beneficiaries of the deceased, disabled veteran, so long as the surviving spouse remains unmarried.
    Sec. 2.  EFFECTIVE DATE AND APPLICABILITY.  This Act, being deemed of immediate importance, takes effect upon enactment and applies to property taxes due and payable in fiscal years beginning on or after July 1, 2010.
EXPLANATION
   This bill provides that the property tax on a disabled veteran’s homestead shall not increase from year to year. To receive this credit, the veteran must file on or before June 30 in a manner similar to filing for the regular homestead credit. Once the claim is filed and allowed, the veteran does not have to file for successive years so long as the property is still owned and used by the veteran as a homestead.
   A disabled veteran is one who is entitled to compensation for injuries from active duty or would have received compensation but for retirement pay or is one who was discharged or released from active duty because of a service-connected disability.
   The bill takes effect upon enactment and applies to property taxes due and payable in fiscal years beginning on or after July 1, 2010.