Senate File 2059 - Introduced SENATE FILE 2059 BY CARLIN A BILL FOR An Act exempting homestead property owned by certain elderly 1 persons from specified school property tax levies and 2 including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5695XS (2) 89 md/jh

S.F. 2059 Section 1. Section 427.1, Code 2022, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 42. Homesteads of elderly persons. 3 a. Each homestead, as defined in section 425.11, receiving 4 the homestead credit under chapter 425, the owner of which is 5 a person who has attained the age of sixty-five years, shall 6 be exempt from the following property tax levies imposed by a 7 school district or a community college: 8 (1) Foundation property tax levy under section 257.3. 9 (2) Additional property tax levy under section 257.4. 10 (3) Enrichment levy under section 257.28. 11 (4) Merged area levy for the operation of a community 12 college under section 260C.17. 13 (5) Merged area levy for equipment replacement and program 14 sharing under section 260C.28. 15 (6) District management levy under section 298.4. 16 (7) Cash reserve for a school district’s general fund under 17 section 298.10. 18 (8) School corporation library levy under section 298.7. 19 (9) School corporation tax authorized under section 300.2. 20 b. Claims for the exemption must be filed with the local 21 assessor by February 1 of the first year the exemption is 22 requested upon forms to be prescribed by the director of 23 revenue. Once the exemption is granted, the exemption shall 24 continue to be granted for subsequent assessment years without 25 further filing of claims as long as the property is legally or 26 equitably owned and used as a homestead by that person or that 27 person’s spouse on July 1 of each of those successive years, 28 and the owner of the property being claimed as a homestead 29 declares residency in Iowa for purposes of income taxation, 30 and the property is occupied by that person or that person’s 31 spouse for at least six months in each of those calendar years 32 in which the fiscal year begins. 33 Sec. 2. IMPLEMENTATION. Section 25B.7 shall not apply to 34 the property tax exemption provided in this Act. 35 -1- LSB 5695XS (2) 89 md/jh 1/ 3

S.F. 2059 Sec. 3. APPLICABILITY. This Act applies to property taxes 1 due and payable in fiscal years beginning on or after July 1, 2 2023. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill exempts homesteads owned by a person who has 7 attained the age of 65 years from the following property tax 8 levies imposed by a school district or a merged area (community 9 college): (1) foundation property tax levy under Code section 10 257.3; (2) additional property tax levy under Code section 11 257.4; (3) enrichment levy under Code section 257.28; (4) 12 merged area levy for the operation of a community college 13 under Code section 260C.17; (5) merged area levy for equipment 14 replacement and program sharing under Code section 260C.28; (6) 15 district management levy under Code section 298.4; (7) cash 16 reserve for a school district’s general fund under Code section 17 298.10; (8) school corporation library levy under Code section 18 298.7; and (9) school corporation tax authorized under Code 19 section 300.2. 20 Claims for the exemption must be filed with the local 21 assessor by February 1 of the first year the exemption is 22 requested upon forms to be prescribed by the director of 23 revenue. Once the exemption is granted, the exemption shall 24 continue to be granted for subsequent assessment years without 25 further filing. 26 Code section 25B.7 provides that for a property tax credit 27 or exemption enacted on or after January 1, 1997, if a state 28 appropriation made to fund the credit or exemption is not 29 sufficient to fully fund the credit or exemption, the political 30 subdivision shall be required to extend to the taxpayer only 31 that portion of the credit or exemption estimated by the 32 department of revenue to be funded by the state appropriation. 33 The bill makes Code section 25B.7 inapplicable to the 34 property tax exemption provided in the bill. 35 -2- LSB 5695XS (2) 89 md/jh 2/ 3

S.F. 2059 The bill applies to property taxes due and payable in fiscal 1 years beginning on or after July 1, 2023. 2 -3- LSB 5695XS (2) 89 md/jh 3/ 3