House Study Bill 706 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOLT) A BILL FOR An Act relating to mobile homes and manufactured homes property 1 taxes, and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6290YC (6) 90 cm/jh

H.F. _____ Section 1. Section 435.22, subsection 1, paragraph b, 1 subparagraphs (1) and (3), Code 2024, are amended to read as 2 follows: 3 (1) If the owner of the home is an Iowa resident, has 4 attained the age of twenty-three years on or before December 31 5 of the base year, and has an income when included with that of 6 a spouse which is less than eight forty thousand five hundred 7 dollars per year, the annual tax shall not be imposed on the 8 home. If the income is eight thousand five hundred dollars or 9 more but less than sixteen thousand five hundred dollars, the 10 annual tax shall be computed as follows: 11 If the Household Annual Tax Per 12 Income is: Square Foot: 13 $ 8,500 —— 9,499.99 3.0 cents 14 9,500 —— 10,499.99 6.0 15 10,500 —— 12,499.99 10.0 16 12,500 —— 14,499.99 13.0 17 14,500 —— 16,499.99 15.0 18 (3) Beginning with the 1998 base year, the income dollar 19 amounts set forth in this paragraph “b” shall be multiplied 20 by the cumulative adjustment factor for that base year as 21 determined in section 425.23, subsection 4 . 22 Sec. 2. Section 435.22, subsection 2, paragraphs a and b, 23 Code 2024, are amended to read as follows: 24 a. For the sixth through ninth years after the year of 25 manufacture the annual tax is ninety percent of the tax 26 computed according to subsection 1 , paragraph “a” or “b” , 27 whichever is applicable unless subsection 1, paragraph “b” , 28 applies . 29 b. For all homes ten or more years after the year of 30 manufacture the annual tax is eighty percent of the tax 31 computed according to subsection 1 , paragraph “a” or “b” , 32 whichever is applicable unless subsection 1, paragraph “b” , 33 applies . 34 Sec. 3. APPLICABILITY. This Act applies to taxes due and 35 -1- LSB 6290YC (6) 90 cm/jh 1/ 2

H.F. _____ payable in fiscal years beginning on or after July 1, 2025. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to the taxation of mobile homes and 5 manufactured homes. 6 The bill modifies income threshold amounts applicable to the 7 reduced square footage tax rates applicable to mobile homes and 8 manufactured homes. These amounts are currently adjusted for 9 inflation. For the year beginning July 1, 2024, the annual tax 10 is not imposed on an owner with an annual income of less than 11 $13,048, and an owner with an annual income between $13,408 and 12 $25,328 pays the annual tax at one of five reduced rates. The 13 bill provides that the tax is not imposed on an owner with an 14 annual income of less than $40,000, does not provide a reduced 15 rate, and does not adjust the $40,000 threshold for inflation. 16 The bill applies to taxes due and payable for fiscal years 17 beginning on or after July 1, 2025. 18 -2- LSB 6290YC (6) 90 cm/jh 2/ 2