House File 2362 - Introduced HOUSE FILE 2362 BY COMMITTEE ON VETERANS AFFAIRS (SUCCESSOR TO HSB 595) A BILL FOR An Act relating to the military service property tax exemption 1 and credit by increasing the exemption amount, and including 2 effective date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5737HV (2) 86 md/sc
H.F. 2362 Section 1. Section 426A.11, subsection 1, Code 2016, is 1 amended by striking the subsection. 2 Sec. 2. Section 426A.11, subsection 2, Code 2016, is amended 3 to read as follows: 4 2. The property, not to exceed one thousand eight hundred 5 fifty-two two thousand dollars in taxable value, of an 6 honorably separated, retired, furloughed to a reserve, placed 7 on inactive status, or discharged veteran, as defined in 8 section 35.1, subsection 2 , paragraph “a” or “b” . 9 Sec. 3. EFFECTIVE DATE. This Act takes effect July 1, 2017. 10 Sec. 4. APPLICABILITY. This Act applies to property taxes 11 due and payable in fiscal years beginning on or after July 1, 12 2017. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 Under current law, veterans of World War I are entitled 17 to a property tax exemption of $2,778 in taxable value and 18 honorably discharged veterans who served during other specific 19 time periods are entitled to a property tax exemption of $1,852 20 in taxable value. This bill increases the exemption amount for 21 all eligible veterans to $2,000. 22 Under current law, the state provides funding to local 23 governments for the military service property tax exemption 24 and credit up to $6.92 per $1,000 of assessed value of the 25 exempt property. Code section 25B.7 provides that if a 26 state appropriation made to fund a credit or exemption is not 27 sufficient to fully fund the credit or exemption, the political 28 subdivision shall be required to extend to the taxpayer only 29 that portion of the credit or exemption estimated by the 30 department of revenue to be funded by the state appropriation. 31 The requirement for fully funding and the consequences of not 32 fully funding under Code section 25B.7 apply to the military 33 service property tax credit and exemption to the extent of 34 $6.92 per $1,000 of assessed value of the exempt property. 35 -1- LSB 5737HV (2) 86 md/sc 1/ 2
H.F. 2362 The bill takes effect July 1, 2017, and applies to property 1 taxes due and payable in fiscal years beginning on or after 2 July 1, 2017. 3 -2- LSB 5737HV (2) 86 md/sc 2/ 2