House Study Bill 647 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR An Act relating to the military service property tax exemption 1 and credit by increasing the exemption amount, and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5137YC (2) 85 md/sc
H.F. _____ Section 1. Section 426A.11, subsection 1, Code 2014, is 1 amended by striking the subsection. 2 Sec. 2. Section 426A.11, subsection 2, Code 2014, is amended 3 to read as follows: 4 2. The property, not to exceed one thousand eight hundred 5 fifty-two three thousand seven hundred four dollars in taxable 6 value of an honorably separated, retired, furloughed to a 7 reserve, placed on inactive status, or discharged veteran, as 8 defined in section 35.1, subsection 2 , paragraph “a” or “b” . 9 Sec. 3. APPLICABILITY. This Act applies to property taxes 10 due and payable in fiscal years beginning on or after July 1, 11 2014. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 Under current law, veterans of World War I are entitled 16 to a property tax exemption of $2,778 in taxable value and 17 honorably discharged veterans who served during other specific 18 time periods are entitled to a property tax exemption of $1,852 19 in taxable value. This bill increases the exemption amount for 20 all eligible veterans to $3,704. 21 Under current law, the state provides funding to local 22 governments for the military service property tax exemption 23 and credit up to $6.92 per $1,000 of assessed value of the 24 exempt property. Code section 25B.7 provides that if a 25 state appropriation made to fund a credit or exemption is not 26 sufficient to fully fund the credit or exemption, the political 27 subdivision shall be required to extend to the taxpayer only 28 that portion of the credit or exemption estimated by the 29 department of revenue to be funded by the state appropriation. 30 The requirement for fully funding and the consequences of not 31 fully funding under Code section 25B.7 apply to the military 32 service property tax credit and exemption to the extent of 33 $6.92 per $1,000 of assessed value of the exempt property. 34 The bill applies to property taxes due and payable in fiscal 35 -1- LSB 5137YC (2) 85 md/sc 1/ 2
H.F. _____ years beginning on or after July 1, 2014. 1 -2- LSB 5137YC (2) 85 md/sc 2/ 2