HF 2016 (LSB 5390YH (2) 89)

HOUSE FILE 2016

BY  JONES

A BILL FOR

An Act relating to the military service property tax exemption and credit and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 426A.11, subsection 1, Code 2022, is amended by striking the subsection.
    Sec. 2.  Section 426A.11, subsection 2, Code 2022, is amended to read as follows:
   2.  The property, not to exceed one thousand eight hundred fifty-two ten thousand three hundred ninety dollars in taxable value, of an honorably separated, retired, furloughed to a reserve, placed on inactive status, or discharged veteran, as defined in section 35.1, subsection 2, paragraph “a” or “b”.
    Sec. 3.  APPLICABILITY.  This division of this Act applies to property taxes due and payable in fiscal years beginning on or after July 1, 2022.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the military service property tax exemption and credit.
   Under current law, veterans of World War I are entitled to a property tax exemption of $2,778 in taxable value and honorably discharged veterans who served during other specific time periods are entitled to a property tax exemption of $1,852 in taxable value. The bill increases the exemption amount for all eligible veterans to $10,390.
   Under current law, the state provides funding to local governments for the military service property tax exemption and credit up to $6.92 per $1,000 of assessed value of the exempt property. Code section 25B.7 provides that if a state appropriation made to fund a credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation. The requirement for fully funding and the consequences of not fully funding under Code section 25B.7 apply to the military service property tax credit and exemption to the extent of $6.92 per $1,000 of assessed value of the exempt property.
   The bill applies to property taxes due and payable in fiscal years beginning on or after July 1, 2022.