Senate Study Bill 3219 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM) A BILL FOR An Act relating to the additional homestead credit for 1 certain disabled veterans and including effective date and 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6205XC (5) 85 md/sc

S.F. _____ Section 1. Section 425.15, Code 2014, is amended to read as 1 follows: 2 425.15 Disabled veteran tax credit. 3 1. If the owner of a homestead allowed a credit under this 4 chapter is a any of the following, the credit allowed on the 5 homestead from the homestead credit fund shall be the entire 6 amount of the tax levied on the homestead: 7 a. A veteran of any of the military forces of the United 8 States, who acquired the homestead under 38 U.S.C. §21.801, 9 21.802, or 38 U.S.C. §2101, 2102 , . 10 b. A veteran as defined in section 35.1 with a 11 service-connected disability rating of one hundred percent, as 12 certified by the United States department of veterans affairs. 13 c. the credit allowed on the homestead from the homestead 14 credit fund shall be the entire amount of the tax levied on the 15 homestead A former member of the national guard of any state 16 who otherwise meets the service requirements of section 35.1, 17 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 18 service-connected disability rating of one hundred percent, as 19 certified by the United States department of veterans affairs . 20 2. The credit allowed shall be continued to the estate of 21 a veteran an owner who is deceased or the surviving spouse 22 and any child, as defined in section 234.1 , who are the 23 beneficiaries of a deceased veteran owner , so long as the 24 surviving spouse remains unmarried. This section is not 25 applicable to the holder of title to any homestead whose annual 26 income, together with that of the titleholder’s spouse, if 27 any, for the last preceding twelve-month income tax accounting 28 period exceeds thirty-five thousand dollars. For the purpose 29 of this section “income” means taxable income for federal income 30 tax purposes plus income from securities of state and other 31 political subdivisions exempt from federal income tax. 32 3. A veteran An owner or a beneficiary of a veteran an owner 33 who elects to secure the credit provided in this section is not 34 eligible for any other real property tax exemption provided by 35 -1- LSB 6205XC (5) 85 md/sc 1/ 2

S.F. _____ law for veterans of military service. 1 4. If a veteran an owner acquires a different homestead, 2 the credit allowed under this section may be claimed on the 3 new homestead unless the veteran owner fails to meet the other 4 requirements of this section . 5 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 6 importance, takes effect upon enactment. 7 Sec. 3. APPLICABILITY. This Act applies to applications for 8 the disabled veteran tax credit filed on or after the effective 9 date of this Act. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 The disabled veteran tax credit under Code section 425.15 14 provides a property tax credit on the homestead of an eligible 15 veteran who acquired the homestead under specified federal 16 programs in an amount equal to the entire amount of the tax 17 levied on the homestead. This bill modifies the qualifications 18 for the disabled veteran tax credit by adding the following 19 owners as being owners eligible for the credit: (1) a veteran 20 as defined in Code section 35.1 with a service-connected 21 disability rating of 100 percent as certified by the United 22 States department of veterans affairs; and (2) a former member 23 of the national guard of any state who otherwise meets the 24 service requirements for Iowa national guard members under 25 Code section 35.1(2)(b), subparagraph (2) or (7), with a 26 service-connected disability rating of 100 percent as certified 27 by the United States department of veterans affairs. The bill 28 also strikes the maximum income limitation qualifications for 29 the credit. 30 The bill takes effect upon enactment and applies to 31 applications for the disabled veteran tax credit filed on or 32 after the effective date of the bill. 33 -2- LSB 6205XC (5) 85 md/sc 2/ 2