Senate File 100 - Introduced SENATE FILE 100 BY ERNST 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 1469XS (1) 85 md/sc

S.F. 100 Section 1. Section 426A.11, subsections 1 and 2, Code 2013, 1 are amended to read as follows: 2 1. The property, not to exceed two thousand seven hundred 3 seventy-eight fourteen thousand five hundred dollars in taxable 4 value of any veteran, as defined in section 35.1 , of the First 5 World War. 6 2. The property, not to exceed one thousand eight hundred 7 fifty-two fourteen thousand five hundred dollars in taxable 8 value of an honorably separated, retired, furloughed to a 9 reserve, placed on inactive status, or discharged veteran, as 10 defined in section 35.1, subsection 2 , paragraph “a” or “b” . 11 Sec. 2. APPLICABILITY. This Act applies to property taxes 12 due and payable in fiscal years beginning on or after July 1, 13 2014. 14 EXPLANATION 15 Under current law, veterans of the First World War are 16 entitled to a property tax exemption of $2,778 in taxable value 17 and honorably discharged veterans who served during other 18 specific time periods are entitled to a property tax exemption 19 of $1,852 in taxable value. This bill increases the exemption 20 amount for all eligible veterans to $14,500. 21 Under current law, the state provides funding to local 22 governments for the military service property tax exemption and 23 credit up to $6.92 per $1,000 of assessed value of the exempt 24 property. 25 Code section 25B.7 provides that if a state appropriation 26 made to fund the credit or exemption is not sufficient to fully 27 fund the credit or exemption, the political subdivision shall 28 be required to extend to the taxpayer only that portion of the 29 credit or exemption estimated by the department of revenue to 30 be funded by the state appropriation. The provisions of Code 31 section 25B.7 apply to the military service property tax credit 32 and exemption to the extent of $6.92 per $1,000 of assessed 33 value of the exempt property. 34 The bill applies to property taxes due and payable in fiscal 35 -1- LSB 1469XS (1) 85 md/sc 1/ 2

S.F. 100 years beginning on or after July 1, 2014. 1 -2- LSB 1469XS (1) 85 md/sc 2/ 2