SF 100 (LSB 1469XS (1) 85)

SENATE FILE 100

BY  ERNST

A BILL FOR

An Act relating to the military service property tax exemption and credit by increasing the exemption amount, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 426A.11, subsections 1 and 2, Code 2013, are amended to read as follows:
   1.  The property, not to exceed two thousand seven hundred seventy-eight
 
fourteen thousand five hundred dollars in taxable value of any veteran, as defined in section 35.1, of the First World War.
   2.  The property, not to exceed one thousand eight hundred fifty-two
 
fourteen thousand five hundred dollars in taxable value of an honorably separated, retired, furloughed to a reserve, placed on inactive status, or discharged veteran, as defined in section 35.1, subsection 2, paragraph “a” or “b”.
    Sec. 2.  APPLICABILITY.  This Act applies to property taxes due and payable in fiscal years beginning on or after July 1, 2014.
EXPLANATION
   Under current law, veterans of the First World War are entitled to a property tax exemption of $2,778 in taxable value and honorably discharged veterans who served during other specific time periods are entitled to a property tax exemption of $1,852 in taxable value. This bill increases the exemption amount for all eligible veterans to $14,500.
   Under current law, the state provides funding to local governments for the military service property tax exemption and credit up to $6.92 per $1,000 of assessed value of the exempt property.
   Code section 25B.7 provides that if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation. The provisions of Code section 25B.7 apply to the military service property tax credit and exemption to the extent of $6.92 per $1,000 of assessed value of the exempt property.
   The bill applies to property taxes due and payable in fiscal years beginning on or after July 1, 2014.