SF 555 (LSB 1551SV (1) 90)

SENATE FILE 555

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SF 113)

A BILL FOR

An Act relating to the abatement of property taxes owed on property owned by certain volunteer emergency services providers and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  427.7  Petition for abatement of taxes —— volunteer emergency services provider.
   1.  a.  A volunteer emergency services provider whose homestead is located in the local service area of the volunteer agency or entity for which the individual is a volunteer and who has been a volunteer emergency services provider for five or more years, earns less than five thousand dollars per year for service as a volunteer emergency services provider, and is in good standing with the provider’s volunteer agency or entity, including being active in monthly meetings, training, and response calls, may file a petition, duly sworn to and accompanied by certification of good standing from the chief officer of the petitioner’s volunteer agency or entity, with the board of supervisors of the county where the petitioner’s homestead is located, requesting abatement of property taxes and special assessments assessed on the individual’s homestead by a taxing authority other than a school district or a merged area or community college under chapter 260C, and giving other information as the board may require.
   b.  For purposes of this section:
   (1)  “Homestead” means the same as defined in section 425.11.
   (2)  “Volunteer emergency services provider” means the same as defined in section 100B.14, subsection 2.
   2.  The petition filed with the board of supervisors shall be on a form prescribed by the department of management and shall specify the type of abatement sought under subsection 3. Following receipt of the petition, the board of supervisors shall forward a copy of the petition to the governing body of each taxing authority not excluded under subsection 1 that levies taxes or special assessments on the homestead. If the board of supervisors approves the abatement, the abatement shall apply to all applicable taxes and special assessments on the homestead, excluding those for which an objection by the governing body taxing authority was filed with the board of supervisors within thirty days of the board providing a copy of the petition. The board of supervisors may order the county treasurer to abate the collection of the taxes and special assessments that are assessed against the petitioner’s homestead for the assessment year during which the petition is filed and, if specified by the board, the taxes and special assessments for one or more future years, subject to the petitioner continuing to meet the qualifications of this section. The abatement approved by the board of supervisors shall apply to the taxes and special assessments of taxing authorities for which an objection was not filed and shall not exceed the amount specified under subsection 3.
   3.  The board of supervisors may approve a petition under this section by authorizing an abatement of taxes and special assessments specified under subsection 1, paragraph “a”, not to exceed the following:
   a.  For a volunteer emergency services provider that does not meet the requirements of paragraph “b”, an amount equal to ten percent of all such taxes and special assessments due on the homestead, not to exceed five hundred dollars.
   b.  For a volunteer emergency services provider who has been a volunteer emergency services provider for ten or more years, notwithstanding the active service requirements under subsection 1, an amount equal to ten percent of all such taxes and special assessments due on the homestead, not to exceed five hundred dollars per year, during the remainder of the volunteer emergency services provider’s life, so long as the provider’s homestead is in the local service area of the agency or entity for which the provider was a volunteer.
   4.  The amount of the abatement shall be apportioned among such property tax levies and special assessments in the proportion that each applicable levy or assessment makes up the total amount of such taxes and special assessments due on the homestead by the applicable taxing authorities for which an objection was not filed.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to assessment years beginning on or after January 1, 2023.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill authorizes a volunteer emergency services provider, as defined in Code section 100B.14(2), whose homestead is located in the local service area for which the provider is a volunteer and who has been a volunteer emergency services provider for five or more years, earns less than $5,000 per year for service as a volunteer emergency services provider, and is in good standing with the provider’s volunteer agency or entity, to file a petition with the county board of supervisors, requesting abatement of property taxes and special assessments assessed on the individual’s homestead and giving other information as the board may require.
   The petition filed with the board of supervisors shall specify the type of abatement sought under the bill. Following receipt of the petition, the board of supervisors shall forward a copy of the petition to the governing body of each taxing authority not excluded under the bill that levies taxes or special assessments on the homestead. If the board of supervisors approves the abatement, the abatement shall apply to all applicable taxes and special assessments on the homestead, excluding those for which an objection by the governing body taxing authority was filed with the board of supervisors within 30 days of the board providing a copy of the petition. The board of supervisors may order the abatement of the taxes and special assessments that are assessed against the petitioner’s homestead for the assessment year during which the petition is filed and, if specified by the board, the taxes and special assessments for one or more future years, subject to the petitioner continuing to meet the qualifications of the bill. The approved abatement shall not exceed the following: (1) for a volunteer emergency services provider that has not been a volunteer for at least 10 years, an abatement of 10 percent of all applicable taxes and special assessments imposed on the homestead, not to exceed $500; and (2) for a volunteer emergency service provider who has been a volunteer emergency service provider for 20 or more years, an abatement of 10 percent of all applicable taxes and special assessments imposed on the homestead, not to exceed $500, during the remainder of the volunteer emergency service provider’s life so long as the provider’s homestead is in the local service area of the agency or entity for which the provider was a volunteer.
   The bill also specifies the method of apportioning the abatement among each applicable levy and special assessment.
   The bill takes effect upon enactment and applies retroactively to assessment years beginning on or after January 1, 2023.