House File 59 - Introduced HOUSE FILE 59 BY KOESTER A BILL FOR An Act relating to the disabled veteran homestead tax credit 1 by modifying eligibility criteria and credit amounts and 2 including effective date and retroactive applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1716YH (3) 87 md/sc

H.F. 59 Section 1. Section 425.15, Code 2017, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 1A. If the owner of a homestead allowed 3 a credit under this chapter does not meet the criteria of 4 subsection 1 and is any of the following, the amount of the 5 credit allowed on the homestead from the homestead credit fund 6 shall be the greater of the amount of the credit authorized 7 under section 425.1, subsection 2, or a percentage of the 8 entire amount of the tax levied on the homestead that is 9 equivalent to the owner’s permanent service-connected 10 disability rating percentage: 11 a. A veteran as defined in section 35.1 with a permanent 12 service-connected disability rating that is less than one 13 hundred percent, as certified by the United States department 14 of veterans affairs. 15 b. A former member of the national guard of any state who 16 otherwise meets the service requirements of section 35.1, 17 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 18 permanent service-connected disability rating of less than one 19 hundred percent, as certified by the United States department 20 of veterans affairs. 21 Sec. 2. Section 425.15, subsection 2, paragraph a, Code 22 2017, is amended to read as follows: 23 a. For an owner described in subsection 1 , paragraph “a” , 24 “b” , or “c” , or subsection 1A, the credit allowed shall be 25 continued to the estate of an owner who is deceased or the 26 surviving spouse and any child, as defined in section 234.1 , 27 who are the beneficiaries of a deceased owner, so long as the 28 surviving spouse remains unmarried. 29 Sec. 3. Section 425.15, subsection 3, Code 2017, is amended 30 to read as follows: 31 3. An owner or a beneficiary of an owner who elects to 32 secure the credit provided in this section under the conditions 33 described in subsection 1 is not eligible for any other real 34 property tax exemption provided by law for veterans of military 35 -1- LSB 1716YH (3) 87 md/sc 1/ 3

H.F. 59 service. 1 Sec. 4. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 2 immediate importance, takes effect upon enactment. 3 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies 4 retroactively to homestead credit claims filed on or after 5 January 1, 2017, for credits allowed against property taxes due 6 and payable in fiscal years beginning on or after July 1, 2018. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 Current Code section 425.15 provides a homestead credit 11 to the owner of a homestead for the full amount of property 12 tax levied if the owner is any of the following: (1) a 13 veteran of any of the military forces of the United States 14 who acquired the homestead under specified federal programs; 15 (2) a veteran with a permanent service-connected disability 16 rating of 100 percent or a permanent and total disability 17 rating based on individual unemployability that is compensated 18 at the 100 percent disability rate; (3) a former member of 19 the national guard of any state who meets specified service 20 requirements with a permanent service-connected disability 21 rating of 100 percent or a permanent and total disability 22 rating based on individual unemployability that is compensated 23 at the 100 percent disability rate; or (4) an individual who 24 is a surviving spouse or a child and who is receiving federal 25 dependency and indemnity compensation. 26 This bill creates two additional categories of disabled 27 veterans who qualify for a homestead credit under Code section 28 425.15. Under the bill, if the owner of a homestead does not 29 meet the criteria under current law for a disabled veteran 30 homestead tax credit and is either of the following, the amount 31 of the credit allowed on the homestead is the greater of the 32 amount of the regular homestead credit (an amount equal to 33 the actual levy on the first $4,850 dollars of actual value) 34 or a percentage of the entire amount of the tax levied on the 35 -2- LSB 1716YH (3) 87 md/sc 2/ 3

H.F. 59 homestead that is equivalent to the owner’s service-connected 1 disability rating percentage: (1) a veteran with a permanent 2 service-connected disability rating that is less than 100 3 percent; (2) a former member of the national guard of any state 4 who meets specified service requirements with a permanent 5 service-connected disability rating of less than 100 percent. 6 The bill takes effect upon enactment and applies 7 retroactively to homestead credit claims filed on or after 8 January 1, 2017, for credits allowed against property taxes due 9 and payable in fiscal years beginning on or after July 1, 2018. 10 -3- LSB 1716YH (3) 87 md/sc 3/ 3