HSB 706 (LSB 6290YC (6) 90)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOLT)

A BILL FOR

An Act relating to mobile homes and manufactured homes property taxes, and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 435.22, subsection 1, paragraph b, subparagraphs (1) and (3), Code 2024, are amended to read as follows:
   (1)  If the owner of the home is an Iowa resident, has attained the age of twenty-three years on or before December 31 of the base year, and has an income when included with that of a spouse which is less than eight forty thousand five hundred dollars per year, the annual tax shall not be imposed on the home. If the income is eight thousand five hundred dollars or more but less than sixteen thousand five hundred dollars, the annual tax shall be computed as follows:
If the Household              Annual Tax Per
Income is:              Square Foot:
$ 8,500 —— 9,499.99                 3.0 cents

  9,500 —— 10,499.99                 6.0

 10,500 —— 12,499.99                10.0

 12,500 —— 14,499.99                13.0

 14,500 —— 16,499.99                15.0

   (3)  Beginning with the 1998 base year, the income dollar amounts set forth in this paragraph “b” shall be multiplied by the cumulative adjustment factor for that base year as determined in section 425.23, subsection 4.
    Sec. 2.  Section 435.22, subsection 2, paragraphs a and b, Code 2024, are amended to read as follows:
   a.  For the sixth through ninth years after the year of manufacture the annual tax is ninety percent of the tax computed according to subsection 1, paragraph “a” or “b”, whichever is applicable unless subsection 1, paragraph “b”, applies.
   b.  For all homes ten or more years after the year of manufacture the annual tax is eighty percent of the tax computed according to subsection 1, paragraph “a” or “b”, whichever is applicable unless subsection 1, paragraph “b”, applies.
    Sec. 3.  APPLICABILITY.  This Act applies to taxes due and payable in fiscal years beginning on or after July 1, 2025.
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 taxation of mobile homes and manufactured homes.
   The bill modifies income threshold amounts applicable to the reduced square footage tax rates applicable to mobile homes and manufactured homes. These amounts are currently adjusted for inflation. For the year beginning July 1, 2024, the annual tax is not imposed on an owner with an annual income of less than $13,048, and an owner with an annual income between $13,408 and $25,328 pays the annual tax at one of five reduced rates. The bill provides that the tax is not imposed on an owner with an annual income of less than $40,000, does not provide a reduced rate, and does not adjust the $40,000 threshold for inflation. The bill applies to taxes due and payable for fiscal years beginning on or after July 1, 2025.