House File 1013 - Introduced HOUSE FILE 1013 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 565) A BILL FOR An Act establishing a partial exemption on property taxes for 1 certain residential properties sold in disaster areas. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2110HV (3) 91 jm/md

H.F. 1013 Section 1. Section 427.1, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 43. Residential property acquired from 3 United States department of housing and urban development. 4 a. A residential property sold by the United States 5 department of housing and urban development to an owner who 6 is occupying the residential property as a homestead shall 7 be partially exempt from taxation if the sale was to provide 8 housing to individuals following a major disaster or disaster 9 emergency and the residential property was located in the major 10 disaster area declared by the president of the United States 11 or the disaster emergency area for which the governor has 12 proclaimed a state of disaster emergency. The exemption is for 13 a period of four assessment years. The amount of the partial 14 exemption is equal to a percent of the actual value, determined 15 as follows: 16 (1) For the first full assessment year occurring after the 17 sale, eighty percent. 18 (2) For the second full assessment year occurring after the 19 sale, sixty percent. 20 (3) For the third full assessment year occurring after the 21 sale, forty percent. 22 (4) For the fourth full assessment year occurring after the 23 sale, twenty percent. 24 b. For purposes of this subsection: 25 (1) “Homestead” means a dwelling house in which the owner, 26 acting in good faith, is occupying or plans to occupy, as a 27 home for at least six months during a calendar year. 28 (2) “Owner” means the same as defined in section 425.11. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 A residential property sold by the United States department 33 of housing and urban development (HUD) to an owner who is 34 occupying the residential property as a homestead shall be 35 -1- LSB 2110HV (3) 91 jm/md 1/ 2

H.F. 1013 partially exempt from taxation if the sale was to provide 1 housing to individuals following a major disaster or disaster 2 emergency and the residential property was located in the major 3 disaster or disaster emergency area. The exemption is for a 4 four-year period beginning with the first full assessment year 5 after the sale. This bill provides an 80 percent exemption on 6 the actual value in the first assessment year, a 60 percent in 7 the second year, a 40 percent in the third year, a 20 percent in 8 the fourth year, and the exemption expires in the fifth year. 9 The bill defines “owner” and “homestead”. 10 -2- LSB 2110HV (3) 91 jm/md 2/ 2