Senate
File
2138
-
Introduced
SENATE
FILE
2138
BY
COMMITTEE
ON
VETERANS
AFFAIRS
(SUCCESSOR
TO
SSB
3122)
A
BILL
FOR
An
Act
relating
to
property
taxes
of
veterans
by
providing
an
1
additional
homestead
credit
for
certain
disabled
veterans,
2
modifying
the
military
service
property
tax
exemption
3
and
credit,
making
penalties
applicable,
and
including
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
25B.7,
subsection
2,
paragraph
c,
Code
1
2014,
is
amended
to
read
as
follows:
2
c.
Military
service
property
tax
credit
and
exemption
3
pursuant
to
chapter
426A
,
to
the
extent
of
six
dollars
and
4
ninety-two
cents
per
thousand
dollars
of
assessed
value
of
the
5
exempt
property
.
6
Sec.
2.
Section
425.15,
Code
2014,
is
amended
to
read
as
7
follows:
8
425.15
Disabled
veteran
tax
credit.
9
If
the
owner
of
a
homestead
allowed
a
credit
under
this
10
chapter
is
a
veteran
of
any
of
the
military
forces
of
the
11
United
States,
who
acquired
the
homestead
under
38
U.S.C.
12
§
21.801,
21.802,
prior
to
August
6,
1991,
or
38
U.S.C.
13
§
2101
,
through
2102,
a
veteran
as
defined
in
section
35.1
14
with
a
service-connected
disability
rating
of
one
hundred
15
percent,
as
certified
by
the
United
States
department
of
16
veterans
affairs,
or
a
former
member
of
the
national
guard
17
of
any
state
who
otherwise
meets
the
service
requirements
of
18
section
35.1,
subsection
2,
paragraph
“b”
,
subparagraph
(2)
19
or
(7),
with
a
service-connected
disability
rating
of
one
20
hundred
percent,
as
certified
by
the
United
States
department
21
of
veterans
affairs,
the
credit
allowed
on
the
homestead
from
22
the
homestead
credit
fund
shall
be
the
entire
amount
of
the
23
tax
levied
on
the
homestead.
The
credit
allowed
shall
be
24
continued
to
the
estate
of
a
veteran
who
is
deceased
or
the
25
surviving
spouse
and
any
child,
as
defined
in
section
234.1
,
26
who
are
the
beneficiaries
of
a
deceased
veteran,
so
long
as
27
the
surviving
spouse
remains
unmarried.
This
section
is
not
28
applicable
to
the
holder
of
title
to
any
homestead
whose
annual
29
income,
together
with
that
of
the
titleholder’s
spouse,
if
30
any,
for
the
last
preceding
twelve-month
income
tax
accounting
31
period
exceeds
thirty-five
thousand
dollars.
For
the
purpose
32
of
this
section
“income”
means
taxable
income
for
federal
33
income
tax
purposes
plus
income
from
securities
of
state
and
34
other
political
subdivisions
exempt
from
federal
income
tax.
A
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veteran
or
a
beneficiary
of
a
veteran
who
elects
to
secure
the
1
credit
provided
in
this
section
is
not
eligible
for
any
other
2
real
property
tax
exemption
provided
by
law
for
veterans
of
3
military
service.
If
a
veteran
acquires
a
different
homestead,
4
the
credit
allowed
under
this
section
may
be
claimed
on
the
5
new
homestead
unless
the
veteran
fails
to
meet
the
other
6
requirements
of
this
section
.
7
Sec.
3.
Section
426A.2,
Code
2014,
is
amended
to
read
as
8
follows:
9
426A.2
Military
service
tax
credit.
10
The
moneys
shall
be
apportioned
each
year
so
as
to
replace
11
all
or
a
portion
of
the
tax
which
would
be
due
on
property
12
eligible
for
military
service
tax
exemption
in
the
state,
13
if
the
property
were
subject
to
taxation
,
the
amount
of
the
14
credit
to
be
not
more
than
six
dollars
and
ninety-two
cents
15
per
thousand
dollars
of
assessed
value
of
property
which
would
16
be
subject
to
the
tax,
except
for
the
military
service
tax
17
exemption
.
18
Sec.
4.
Section
426A.11,
subsection
1,
Code
2014,
is
amended
19
by
striking
the
subsection.
20
Sec.
5.
Section
426A.11,
subsections
2
and
4,
Code
2014,
are
21
amended
to
read
as
follows:
22
2.
The
property,
not
to
exceed
one
thousand
eight
hundred
23
fifty-two
the
lesser
of
ten
percent
of
the
taxable
value
or
24
fifteen
thousand
dollars
in
taxable
value
of
an
honorably
25
separated,
retired,
furloughed
to
a
reserve,
placed
on
inactive
26
status,
or
discharged
veteran,
as
defined
in
section
35.1,
27
subsection
2
,
paragraph
“a”
or
“b”
or
subsections
3
and
4
of
28
this
section
.
29
4.
For
purposes
of
this
chapter
,
unless
the
context
30
otherwise
requires,
“veteran”
also
means
a
any
of
the
following:
31
a.
A
resident
of
this
state
who
is
a
former
member
of
the
32
armed
forces
of
the
United
States
and
who
served
for
a
minimum
33
aggregate
of
eighteen
months
and
who
was
discharged
under
34
honorable
conditions.
However,
“veteran”
also
means
a
35
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b.
A
resident
of
this
state
who
is
a
former
member
of
the
1
armed
forces
of
the
United
States
and
who,
after
serving
fewer
2
than
eighteen
months,
was
honorably
discharged
because
of
a
3
service-related
injury
sustained
by
the
veteran.
4
c.
A
resident
of
this
state
who
is
a
former
member
of
the
5
national
guard
of
any
state
who
otherwise
meets
the
service
6
requirements
of
section
35.1,
subsection
2,
paragraph
“b”
,
7
subparagraph
(2)
or
(7).
8
Sec.
6.
Section
426A.12,
Code
2014,
is
amended
to
read
as
9
follows:
10
426A.12
Exemptions
to
relatives.
11
1.
In
case
any
person
in
the
foregoing
classifications
does
12
not
claim
the
exemption
from
taxation,
it
shall
be
allowed
in
13
the
name
of
the
person
to
the
same
extent
on
the
property
of
any
14
one
of
the
following
persons
in
the
order
named:
15
a.
The
spouse,
or
surviving
spouse
remaining
unmarried,
16
of
a
veteran,
as
defined
in
this
chapter
or
in
section
35.1,
17
subsection
2
,
paragraph
“a”
or
“b”
,
where
they
are
living
18
together
or
were
living
together
at
the
time
of
the
death
of
19
the
veteran.
20
b.
The
parent
whose
spouse
is
deceased
and
who
remains
21
unmarried,
of
a
veteran,
as
defined
in
this
chapter
or
in
22
section
35.1,
subsection
2
,
paragraph
“a”
or
“b”
,
whether
living
23
or
deceased,
where
the
parent
is,
or
was
at
the
time
of
death
of
24
the
veteran,
dependent
on
the
veteran
for
support.
25
c.
The
minor
child,
or
children
owning
property
as
tenants
26
in
common,
of
a
deceased
veteran,
as
defined
in
this
chapter
or
27
in
section
35.1,
subsection
2
,
paragraph
“a”
or
“b”
.
28
2.
No
more
than
one
tax
exemption
shall
be
allowed
under
29
this
section
or
section
426A.11
in
the
name
of
a
veteran,
30
as
defined
in
this
chapter
or
in
section
35.1,
subsection
2
,
31
paragraph
“a”
or
“b”
.
32
Sec.
7.
Section
426A.13,
unnumbered
paragraphs
1
and
2,
Code
33
2014,
are
amended
to
read
as
follows:
34
A
person
named
in
section
426A.11
,
who
is
a
resident
of
35
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and
domiciled
in
the
state
of
Iowa,
shall
receive
a
reduction
1
equal
to
the
exemption,
to
be
made
from
any
property
owned
2
by
the
person
or
owned
by
a
family
farm
corporation
of
which
3
the
person
is
a
shareholder
and
occupant
of
the
property
and
4
so
designated
by
proceeding
as
provided
in
the
section.
To
5
be
eligible
to
receive
the
exemption,
the
person
claiming
it
6
shall
have
recorded
in
the
office
of
the
county
recorder
of
7
the
county
in
which
is
located
the
property
designated
for
the
8
exemption,
evidence
of
property
ownership
by
that
person
or
the
9
family
farm
corporation
of
which
the
person
is
a
shareholder
10
and
the
military
certificate
of
satisfactory
service,
order
11
transferring
to
inactive
status,
reserve,
retirement,
order
of
12
separation
from
service,
honorable
discharge
or
a
copy
of
any
13
of
these
documents
of
the
person
claiming
or
through
whom
is
14
claimed
the
exemption.
In
the
case
of
a
person
claiming
the
15
exemption
as
a
veteran
described
in
section
35.1,
subsection
16
2
,
paragraph
“b”
,
subparagraph
(6)
or
(7),
or
under
section
17
426A.11,
subsection
4,
paragraph
“c”
,
the
person
shall
file
the
18
statement
required
by
section
35.2
.
19
The
person
shall
file
with
the
appropriate
assessor
on
forms
20
obtained
from
the
assessor
the
claim
for
exemption
for
the
year
21
for
which
the
person
is
first
claiming
the
exemption.
The
22
claim
shall
be
filed
not
later
than
July
1
of
the
year
for
which
23
the
person
is
claiming
the
exemption.
The
claim
shall
set
out
24
the
fact
that
the
person
is
a
resident
of
and
domiciled
in
the
25
state
of
Iowa,
and
a
person
within
the
terms
of
section
426A.11
26
or
section
426A.12
,
and
shall
give
the
volume
and
page
on
which
27
the
certificate
of
satisfactory
service,
order
of
separation,
28
retirement,
furlough
to
reserve,
inactive
status,
or
honorable
29
discharge
or
certified
copy
thereof
is
recorded
in
the
office
30
of
the
county
recorder,
and
may
include
the
designation
of
the
31
property
from
which
the
exemption
is
to
be
made,
and
shall
32
further
state
that
the
claimant
is
the
equitable
or
legal
owner
33
of
the
property
designated
or
if
the
property
is
owned
by
a
34
family
farm
corporation,
that
the
person
is
a
shareholder
of
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that
corporation
and
that
the
person
occupies
the
property.
1
In
the
case
of
a
person
claiming
the
exemption
as
a
veteran
2
described
in
section
35.1,
subsection
2
,
paragraph
“b”
,
3
subparagraph
(6)
or
(7),
or
under
section
426A.11,
subsection
4
4,
paragraph
“c”
,
the
person
shall
file
the
statement
required
5
by
section
35.2
.
6
Sec.
8.
APPLICABILITY.
This
Act
applies
to
property
taxes
7
due
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
8
2014.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
relates
to
property
taxes
of
veterans
by
providing
13
an
additional
homestead
credit
for
certain
disabled
veterans
14
and
by
modifying
the
military
service
property
tax
exemption.
15
The
disabled
veterans
tax
credit
under
Code
section
425.15
16
provides
a
credit
on
the
homestead
of
an
eligible
veteran
17
who
acquired
the
homestead
under
specified
federal
programs
18
in
an
amount
equal
to
the
entire
amount
of
the
tax
levied
19
on
the
homestead.
The
bill
modifies
the
qualifications
for
20
the
disabled
veterans
tax
credit
by
adding
the
following
21
to
the
list
of
veterans
who
are
eligible
for
the
credit:
22
(1)
a
veteran
as
defined
in
Code
section
35.1
with
a
23
service-connected
disability
rating
of
100
percent
as
certified
24
by
the
United
States
department
of
veterans
affairs;
and
(2)
a
25
former
member
of
the
national
guard
of
any
state
who
otherwise
26
meets
the
service
requirements
for
Iowa
national
guard
members
27
under
Code
section
35.1(2)(b),
subparagraph
(2)
or
(7),
with
a
28
service-connected
disability
rating
of
100
percent
as
certified
29
by
the
United
States
department
of
veterans
affairs.
The
bill
30
also
strikes
the
income
limitation
qualifications
for
the
31
disabled
veteran
tax
credit.
32
Under
current
law,
veterans
of
the
First
World
War
are
33
entitled
to
a
property
tax
exemption
of
$2,778
in
taxable
value
34
and
honorably
discharged
veterans
who
served
during
other
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specific
time
periods
are
entitled
to
a
property
tax
exemption
1
of
$1,852
in
taxable
value.
The
bill
removes
the
provision
2
relating
to
veterans
of
the
First
World
War
and
increases
the
3
exemption
amount
for
all
eligible
veterans
to
10
percent
of
the
4
taxable
value
of
the
veteran’s
property
or
$15,000,
whichever
5
is
less.
6
The
bill
also
modifies
the
qualifications
for
the
military
7
service
property
tax
exemption
and
credit
by
adding
the
8
following
to
the
list
of
veterans
who
are
eligible
for
the
9
credit:
(1)
a
resident
of
this
state
who
is
a
current
member
of
10
the
national
guard,
organized
reserves,
or
regular
component
of
11
the
armed
forces
of
the
United
States;
(2)
a
resident
of
this
12
state
who
is
a
former
member
of
the
national
guard
of
any
state
13
who
otherwise
meets
the
service
requirements
for
members
of
the
14
Iowa
national
guard
under
Code
section
35.1(2)(b),
subparagraph
15
(2)
or
(7);
and
(3)
a
resident
of
this
state
who
served
on
16
federal
active
duty,
other
than
training,
in
the
armed
forces
17
of
the
United
States
and
who
was
discharged
under
honorable
18
conditions.
19
Current
law
limits
the
amount
of
the
military
service
20
property
tax
credit
state
payment
that
replaces
all
or
a
21
portion
of
the
property
tax
revenue
otherwise
due
to
local
22
governments
to
not
more
than
$6.92
per
$1,000
of
assessed
23
value.
24
Under
current
law,
the
state
provides
funding
to
local
25
governments
for
the
military
service
property
tax
exemption
and
26
credit
up
to
$6.92
per
$1,000
of
assessed
value
of
the
exempt
27
property.
Code
section
25B.7
provides
that
for
a
property
tax
28
credit
or
exemption
enacted
on
or
after
January
1,
1997,
if
a
29
state
appropriation
made
to
fund
the
credit
or
exemption
is
not
30
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
31
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
32
that
portion
of
the
credit
or
exemption
estimated
by
the
33
department
of
revenue
to
be
funded
by
the
state
appropriation.
34
The
provisions
of
current
Code
section
25B.7
apply
to
the
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military
service
property
tax
credit
and
exemption
to
the
1
extent
of
$6.92
per
$1,000
of
assessed
value
of
the
exempt
2
property.
3
The
bill
strikes
the
military
service
property
tax
credit
4
amount
limitation
of
$6.92
per
$1,000
of
assessed
value
and
5
strikes
the
$6.92
per
$1,000
of
assessed
value
limit
from
Code
6
section
25B.7.
7
The
bill
applies
to
property
taxes
due
and
payable
in
fiscal
8
years
beginning
on
or
after
July
1,
2014.
9
-7-
LSB
5501SV
(4)
85
md/sc
7/
7