Senate File 45 - Introduced SENATE FILE 45 BY QUIRMBACH , COURTNEY , and HORN A BILL FOR An Act relating to the eligibility criteria for the disabled 1 veteran homestead tax credit and including effective date 2 and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1087XS (4) 86 md/sc

S.F. 45 Section 1. Section 425.15, subsection 1, paragraphs b and c, 1 Code 2015, are amended to read as follows: 2 b. A veteran as defined in section 35.1 with a 3 service-connected disability rating of one hundred percent 4 or a one hundred percent service-connected disability rating 5 based on individual unemployability , as certified by the United 6 States department of veterans affairs. 7 c. A former member of the national guard of any state who 8 otherwise meets the service requirements of section 35.1, 9 subsection 2 , paragraph “b” , subparagraph (2) or (7), with a 10 service-connected disability rating of one hundred percent or 11 a one hundred percent disability rating based on individual 12 unemployability , as certified by the United States department 13 of veterans affairs. 14 Sec. 2. Section 425.15, Code 2015, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 5. For purposes of this section, 17 “individual unemployability” means a condition under which a 18 person has either a service-connected disability rating of 19 sixty percent or two or more service-connected disability 20 conditions in which one of the conditions has at least a 21 forty percent rating and the combined rating for all the 22 conditions is at least seventy percent, and the person has 23 an administrative adjustment added to the service-connected 24 disability, due to individual unemployability, such that the 25 United States department of veterans affairs rates the veteran 26 one hundred percent disabled. 27 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 28 immediate importance, takes effect upon enactment. 29 Sec. 4. APPLICABILITY. This Act applies to applications for 30 the homestead credit under chapter 425 filed on or after the 31 effective date of this Act. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -1- LSB 1087XS (4) 86 md/sc 1/ 2

S.F. 45 Current Code section 425.15 provides a homestead credit to 1 the owner of a homestead for the full amount of tax levied 2 if the owner is any of the following: (1) a veteran of any 3 of the military forces of the United States who acquired the 4 homestead under specified federal programs; (2) a veteran 5 with a service-connected disability rating of 100 percent; 6 (3) a former member of the national guard of any state who 7 meets specified service requirements with a service-connected 8 disability rating of 100 percent; or (4) an individual who is a 9 surviving spouse or a child and who is receiving dependency and 10 indemnity compensation. 11 This bill amends the eligibility criteria for the credit 12 to include a veteran with a 100 percent service-connected 13 disability rating based on individual unemployability and 14 certain members of the national guard with a 100 percent 15 service-connected disability rating based on individual 16 unemployability. 17 The bill defines “individual unemployability” to 18 mean a condition under which a person has either a 19 service-connected disability rating of 60 percent or two 20 or more service-connected disability conditions in which 21 one of the conditions has at least a 40 percent rating and 22 the combined rating for all the conditions is at least 70 23 percent, and the person has an administrative adjustment 24 added to the service-connected disability, due to individual 25 unemployability, such that the United States Department of 26 Veterans Affairs rates the veteran 100 percent disabled. 27 The bill takes effect upon enactment and applies to 28 applications for the homestead credit under Code chapter 425 29 filed on or after the effective date of the bill. 30 -2- LSB 1087XS (4) 86 md/sc 2/ 2