SF 103 (LSB 1888XS (2) 86)

SENATE FILE 103

BY  ANDERSON

A BILL FOR

An Act relating to the disabled veteran homestead tax credit by modifying eligibility criteria and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 425.15, subsection 1, unnumbered paragraph 1, Code 2015, is amended to read as follows:

   If the owner of a homestead allowed a credit under this chapter is any of the following, the credit allowed on the homestead from the homestead credit fund shall be the entire amount a percentage of the tax levied on the homestead that is equivalent to the veteran’s service-connected disability rating percentage: 
    Sec. 2.  Section 425.15, subsection 1, paragraphs b and c, Code 2015, are amended to read as follows:
   b.  A veteran as defined in section 35.1 with a service-connected disability rating of one hundred percent, as certified by the United States department of veterans affairs.
   c.   A former member of the national guard of any state who otherwise meets the service requirements of section 35.1, subsection 2, paragraph “b”, subparagraph (2) or (7), with a service-connected disability rating of one hundred percent, as certified by the United States department of veterans affairs.
    Sec. 3.  Section 425.15, subsection 3, Code 2015, is amended by striking the subsection and inserting in lieu thereof the following:
   3.  If a veteran’s service-connected disability rating percentage changes, the veteran shall provide written notice to the assessor by July 1 following the date on which the rating percentage is changed.
    Sec. 4.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 5.  APPLICABILITY.  This Act applies to applications for the homestead credit under chapter 425 filed on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Current Code section 425.15 provides a homestead credit to the owner of a homestead for the full amount of tax levied if the owner is any of the following: (1) a veteran of any of the military forces of the United States who acquired the homestead under specified federal programs; (2) a veteran with a service-connected disability rating of 100 percent; (3) a former member of the national guard of any state who meets specified service requirements with a service-connected disability rating of 100 percent; or (4) an individual who is a surviving spouse or a child and who is receiving dependency and indemnity compensation.
   This bill modifies the eligibility criteria for the credit by removing the requirement that the veteran’s service-connected disability rating be 100 percent and instead provides that the credit allowed on the homestead shall be a percentage of the tax levied on the homestead that is equivalent to the veteran’s service-connected disability rating percentage.
   The bill requires a veteran receiving the credit to provide written notice to the assessor by July 1 if a veteran’s service-connected disability rating percentage changes.
   The bill strikes a provision that makes recipients of the disabled veteran homestead credit ineligible for other property tax exemptions available to veterans.
   The bill takes effect upon enactment and applies to applications for the homestead credit under Code chapter 425 filed on or after the effective date of the bill.