Senate File 191 - Introduced SENATE FILE 191 BY KOELKER A BILL FOR An Act relating to veterans benefits by modifying provisions 1 relating to the filing date for the disabled veteran 2 homestead property tax credit and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2327XS (1) 89 md/jh

S.F. 191 Section 1. Section 425.1, subsection 4, Code 2021, is 1 amended to read as follows: 2 4. Annually the department of revenue shall certify to 3 the county auditor of each county the credit and its amount 4 in dollars. Each county auditor shall then enter the credit 5 against the tax levied on each eligible homestead in each 6 county payable during the ensuing year, designating on the tax 7 lists the credit as being from the homestead credit fund, and 8 credit shall then be given to the several taxing districts in 9 which eligible homesteads are located in an amount equal to the 10 credits allowed on the taxes of the homesteads. The amount 11 of credits certified and amounts given to the several taxing 12 districts shall be adjusted, if necessary, as the result of 13 claims filed under section 425.2, subsection 1, paragraph “c” , 14 following the date for certification. The amount of credits 15 shall be apportioned by each county treasurer to the several 16 taxing districts as provided by law, in the same manner as 17 though the amount of the credit had been paid by the owners of 18 the homesteads. However, the several taxing districts shall 19 not draw the funds so credited until after the semiannual 20 allocations have been received by the county treasurer, as 21 provided in this chapter . Each county treasurer shall show 22 on each tax receipt the amount of credit received from the 23 homestead credit fund. 24 Sec. 2. Section 425.2, subsection 1, Code 2021, is amended 25 to read as follows: 26 1. a. A person who wishes to qualify for the credit allowed 27 under this chapter shall obtain the appropriate forms for 28 filing for the credit from the assessor. The person claiming 29 the credit shall file a verified statement and designation of 30 homestead with the assessor for the year for which the person 31 is first claiming the credit. 32 b. The claim shall be filed not later than July 1 of the 33 year for which the person is claiming the credit. A claim 34 filed after July 1 of the year for which the person is claiming 35 -1- LSB 2327XS (1) 89 md/jh 1/ 3

S.F. 191 the credit shall be considered as a claim filed for the 1 following year. 2 c. For a person filing a claim under this subchapter who 3 qualifies for the credit amount provided under section 425.15, 4 the credit shall be applicable immediately to property tax 5 payments due and payable beginning with the fiscal year that 6 the claim was filed and for which the person claiming the 7 credit is responsible for payment on or after the date of 8 filing. 9 Sec. 3. Section 425.3, subsection 3, Code 2021, is amended 10 to read as follows: 11 3. Not later than July 6 of each year, or for claims filed 12 under section 425.2, subsection 1, paragraph “c” , as soon as 13 practicable following the date of filing, the assessor shall 14 remit the statements and designation of homesteads to the 15 county auditor with the assessor’s recommendation for allowance 16 or disallowance. If the assessor recommends disallowance 17 of a claim, the assessor shall submit the reasons for the 18 recommendation, in writing, to the county auditor. 19 Sec. 4. Section 425.4, Code 2021, is amended to read as 20 follows: 21 425.4 Certification to treasurer. 22 All claims which have been allowed by the board of 23 supervisors shall be certified on or before August 1, in each 24 year, or for claims filed under section 425.2, subsection 1, 25 paragraph “c” , as soon as practicable following the date of 26 allowance, by the county auditor to the county treasurer, 27 which certificates shall list the total amount of dollars, 28 listed by taxing district in the county, due for homestead 29 tax credits claimed and allowed. The county treasurer shall 30 forthwith certify to the department of revenue the total amount 31 of dollars, listed by taxing district in the county, due for 32 homestead tax credits claimed and allowed. 33 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 34 importance, takes effect upon enactment. 35 -2- LSB 2327XS (1) 89 md/jh 2/ 3

S.F. 191 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill relates to veterans benefits by modifying 4 provisions relating to the filing date for the disabled veteran 5 homestead property tax credit. 6 Current Code section 425.2 provides that a person who wishes 7 to receive the homestead property tax credit must file the 8 claim with the assessor not later than July 1 of the assessment 9 year for which the person is claiming the credit and a claim 10 filed after July 1 of the assessment year for which the person 11 is claiming the credit shall be considered as a claim filed 12 for the following year. Consequently, for example, a claim 13 filed on July 1, 2020, would be allowed for the assessment year 14 beginning January 1, 2020, for property taxes calculated using 15 valuations from that assessment year that are due and payable 16 during the fiscal year beginning July 1, 2021, and ending June 17 30, 2022. 18 The bill modifies the timeline for which a homestead credit 19 is allowed if the person claiming the credit is eligible for 20 the disabled veteran homestead credit amount under Code section 21 425.15. For such a claimant, the credit shall be applicable 22 immediately to property tax payments due and payable beginning 23 with the fiscal year that the claim was filed and for which 24 the person claiming the credit is responsible for payment on 25 or after the date of filing. For example, a claim filed on 26 July 1, 2020, would be allowed for property taxes that are due 27 and payable during the fiscal year beginning July 1, 2020, and 28 ending June 30, 2021, for which the claimant is responsible for 29 payment. 30 The bill takes effect upon enactment. 31 -3- LSB 2327XS (1) 89 md/jh 3/ 3