S.F. 2299 DIVISION I 1 DISABLED VETERAN HOMESTEAD CREDIT 2 Section 1. Section 425.15, Code 2022, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 1A. If the owner of a homestead allowed 5 a credit under this subchapter does not meet the criteria 6 of subsection 1 and is any of the following, the amount 7 of the credit allowed on the homestead from the homestead 8 credit fund shall be the greater of the amount of the credit 9 authorized under section 425.1, subsection 2, or a percentage 10 of the entire amount of the tax levied on the homestead that 11 is equivalent to the owner’s permanent service-connected 12 disability rating percentage: 13 a. A veteran as defined in section 35.1 with a permanent 14 service-connected disability rating that is less than one 15 hundred percent, as certified by the United States department 16 of veterans affairs. 17 b. A former member of the national guard of any state who 18 otherwise meets the service requirements of section 35.1, 19 subsection 2, paragraph “b” , subparagraph (2) or (7), with a 20 permanent service-connected disability rating of less than one 21 hundred percent, as certified by the United States department 22 of veterans affairs. 23 Sec. 2. Section 425.15, subsection 2, paragraph a, Code 24 2022, is amended to read as follows: 25 a. For an owner described in subsection 1 , paragraph “a” , 26 “b” , or “c” , or subsection 1A, the credit allowed shall be 27 continued to the estate of an owner who is deceased or the 28 surviving spouse and any child, as defined in section 234.1 , 29 who are the beneficiaries of a deceased owner, so long as the 30 surviving spouse remains unmarried. 31 Sec. 3. Section 425.15, subsection 3, Code 2022, is amended 32 to read as follows: 33 3. An owner or a beneficiary of an owner who elects to 34 secure the credit provided in this section under the conditions 35 -1- LSB 5051XS (2) 89 md/jh 1/ 4

S.F. 2299 described in subsection 1 is not eligible for any other real 1 property tax exemption provided by law for veterans of military 2 service. 3 Sec. 4. EFFECTIVE UPON ENACTMENT. This division of this 4 Act, being deemed of immediate importance, takes effect upon 5 enactment. 6 Sec. 5. RETROACTIVE APPLICABILITY. This division of this 7 Act applies retroactively to homestead credit claims filed on 8 or after January 1, 2022, for credits allowed against property 9 taxes due and payable in fiscal years beginning on or after 10 July 1, 2023. 11 DIVISION II 12 MILITARY SERVICE CREDIT 13 Sec. 6. Section 426A.11, subsection 1, Code 2022, is amended 14 by striking the subsection. 15 Sec. 7. Section 426A.11, subsection 2, Code 2022, is amended 16 to read as follows: 17 2. The property, not to exceed one thousand eight hundred 18 fifty-two fifteen thousand dollars in taxable value, of an 19 honorably separated, retired, furloughed to a reserve, placed 20 on inactive status, or discharged veteran, as defined in 21 section 35.1, subsection 2 , paragraph “a” or “b” . 22 Sec. 8. APPLICABILITY. This division of this Act applies 23 to property taxes due and payable in fiscal years beginning on 24 or after July 1, 2022. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to the disabled veteran homestead credit 29 and the military service property tax exemption and credit. 30 Current Code section 425.15 provides a homestead credit 31 to the owner of a homestead for the full amount of property 32 tax levied if the owner is any of the following: (1) a 33 veteran of any of the military forces of the United States 34 who acquired the homestead under specified federal programs; 35 -2- LSB 5051XS (2) 89 md/jh 2/ 4

S.F. 2299 (2) a veteran with a permanent service-connected disability 1 rating of 100 percent or a permanent and total disability 2 rating based on individual unemployability that is compensated 3 at the 100 percent disability rate; (3) a former member of 4 the national guard of any state who meets specified service 5 requirements with a permanent service-connected disability 6 rating of 100 percent or a permanent and total disability 7 rating based on individual unemployability that is compensated 8 at the 100 percent disability rate; or (4) an individual who 9 is a surviving spouse or a child and who is receiving federal 10 dependency and indemnity compensation. 11 Division I of the bill creates two additional categories 12 of disabled veterans who qualify for a homestead credit 13 under Code section 425.15. Under the bill, if the owner of 14 a homestead does not meet the criteria under current law for 15 a disabled veteran homestead tax credit and is either of the 16 following, the amount of the credit allowed on the homestead 17 is the greater of the amount of the regular homestead credit 18 (an amount equal to the actual levy on the first $4,850 dollars 19 of actual value) or a percentage of the entire amount of the 20 tax levied on the homestead that is equivalent to the owner’s 21 service-connected disability rating percentage: (1) a veteran 22 with a permanent service-connected disability rating that is 23 less than 100 percent or (2) a former member of the national 24 guard of any state who meets specified service requirements 25 with a permanent service-connected disability rating of less 26 than 100 percent. 27 Division I of the bill takes effect upon enactment and 28 applies retroactively to homestead credit claims filed on or 29 after January 1, 2022, for credits allowed against property 30 taxes due and payable in fiscal years beginning on or after 31 July 1, 2023. 32 Under current law, veterans of World War I are entitled to a 33 property tax exemption of $2,778 in taxable value and honorably 34 discharged veterans who served during other specific time 35 -3- LSB 5051XS (2) 89 md/jh 3/ 4

S.F. 2299 periods are entitled to a property tax exemption of $1,852 in 1 taxable value. Division II of the bill increases the exemption 2 amount for all eligible veterans to $15,000. 3 Under current law, the state provides funding to local 4 governments for the military service property tax exemption 5 and credit up to $6.92 per $1,000 of assessed value of the 6 exempt property. Code section 25B.7 provides that if a 7 state appropriation made to fund a credit or exemption is not 8 sufficient to fully fund the credit or exemption, the political 9 subdivision shall be required to extend to the taxpayer only 10 that portion of the credit or exemption estimated by the 11 department of revenue to be funded by the state appropriation. 12 The requirement for fully funding and the consequences of not 13 fully funding under Code section 25B.7 apply to the military 14 service property tax credit and exemption to the extent of 15 $6.92 per $1,000 of assessed value of the exempt property. 16 Division II of the bill applies to property taxes due and 17 payable in fiscal years beginning on or after July 1, 2022. 18 -4- LSB 5051XS (2) 89 md/jh 4/ 4