Senate File 103 - Introduced SENATE FILE 103 BY ANDERSON A BILL FOR An Act relating to the disabled veteran homestead tax credit by 1 modifying eligibility criteria and including effective date 2 and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1888XS (2) 86 md/sc
S.F. 103 Section 1. Section 425.15, subsection 1, unnumbered 1 paragraph 1, Code 2015, is amended to read as follows: 2 If the owner of a homestead allowed a credit under this 3 chapter is any of the following, the credit allowed on the 4 homestead from the homestead credit fund shall be the entire 5 amount a percentage of the tax levied on the homestead that is 6 equivalent to the veteran’s service-connected disability rating 7 percentage : 8 Sec. 2. Section 425.15, subsection 1, paragraphs b and c, 9 Code 2015, are amended to read as follows: 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. A former member of the national guard of any state 14 who otherwise meets the service requirements of section 35.1, 15 subsection 2 , paragraph “b” , subparagraph (2) or (7), with a 16 service-connected disability rating of one hundred percent , as 17 certified by the United States department of veterans affairs. 18 Sec. 3. Section 425.15, subsection 3, Code 2015, is amended 19 by striking the subsection and inserting in lieu thereof the 20 following: 21 3. If a veteran’s service-connected disability rating 22 percentage changes, the veteran shall provide written notice to 23 the assessor by July 1 following the date on which the rating 24 percentage is changed. 25 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 26 immediate importance, takes effect upon enactment. 27 Sec. 5. APPLICABILITY. This Act applies to applications for 28 the homestead credit under chapter 425 filed on or after the 29 effective date of this Act. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 Current Code section 425.15 provides a homestead credit to 34 the owner of a homestead for the full amount of tax levied 35 -1- LSB 1888XS (2) 86 md/sc 1/ 2
S.F. 103 if the owner is any of the following: (1) a veteran of any 1 of the military forces of the United States who acquired the 2 homestead under specified federal programs; (2) a veteran 3 with a service-connected disability rating of 100 percent; 4 (3) a former member of the national guard of any state who 5 meets specified service requirements with a service-connected 6 disability rating of 100 percent; or (4) an individual who is a 7 surviving spouse or a child and who is receiving dependency and 8 indemnity compensation. 9 This bill modifies the eligibility criteria for the 10 credit by removing the requirement that the veteran’s 11 service-connected disability rating be 100 percent and instead 12 provides that the credit allowed on the homestead shall 13 be a percentage of the tax levied on the homestead that is 14 equivalent to the veteran’s service-connected disability rating 15 percentage. 16 The bill requires a veteran receiving the credit to provide 17 written notice to the assessor by July 1 if a veteran’s 18 service-connected disability rating percentage changes. 19 The bill strikes a provision that makes recipients of the 20 disabled veteran homestead credit ineligible for other property 21 tax exemptions available to veterans. 22 The bill takes effect upon enactment and applies to 23 applications for the homestead credit under Code chapter 425 24 filed on or after the effective date of the bill. 25 -2- LSB 1888XS (2) 86 md/sc 2/ 2