HSB 326 (LSB 2964YC (1) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN)

A BILL FOR

An Act relating to state services and benefits provided to disabled veterans, making penalties applicable, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
VEHICLE REGISTRATION FEES —— DISABLED VETERANS EXEMPT

    Section 1.  Section 321.46, subsection 2, Code 2025, is amended to read as follows:
   2.  a.  Upon filing the application for a new initial registration and a new title, the applicant shall pay a title fee of thirty dollars, an annual registration fee prorated for the remaining unexpired months of the registration year, and a fee for new registration if applicable.
   b.  A manufacturer applying for a certificate of title pursuant to section 322G.12 shall pay a title fee of twenty dollars. However, a title fee shall not be charged to a manufactured or mobile home retailer applying for a certificate of title for a used mobile home or manufactured home, titled in Iowa, as required under section 321.45, subsection 4. The county treasurer, if satisfied of the genuineness and regularity of the application, and in the case of a mobile home or manufactured home, that taxes are not owing under chapter 435, and that applicant has complied with all the requirements of this chapter, shall issue a new certificate of title and, except for a mobile home, manufactured home, or a vehicle returned to and accepted by a manufacturer as described in section 322G.12, a registration card to the purchaser or transferee, shall cancel the prior registration for the vehicle, and shall forward the necessary copies to the department on the date of issuance, as prescribed in section 321.24. Mobile homes or manufactured homes titled under chapter 448 that have been subject under section 446.18 to a public bidder sale in a county shall be titled in the county’s name, with no fee, and the county treasurer shall issue the title.
   c.  A veteran, as defined in section 35.1, who is a resident of the state of Iowa and has a service-connected disability rating of one hundred percent as certified by the United States department of veterans affairs shall not be charged a title fee.
    Sec. 2.  Section 321.105, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  A veteran, as defined in section 35.1, with a service-connected disability rating of one hundred percent as certified by the United States department of veterans affairs and who is not otherwise exempt under subsection 5 is exempt from payment of annual registration fees provided in this chapter for not more than three vehicles registered by the veteran, if the veteran resides in Iowa. The veteran shall be provided, without fee, one set of regular registration plates for each vehicle. In lieu of the set of regular registration plates available without fee, the veteran may obtain a set of special registration plates or personalized registration plates issued under section 321.34 by paying the additional fees associated with those plates.
    Sec. 3.  NEW SECTION.  321.114  Disabled veterans fee waiver.
   The department may waive any administrative fee related to vehicle ownership for a veteran, as defined in section 35.1, who is a resident of the state of Iowa and has a service-connected disability rating of one hundred percent as certified by the United States department of veterans affairs.
DIVISION II
DISABLED VETERAN TAX CREDIT

    Sec. 4.  NEW SECTION.  426D.1  Disabled veteran property tax credit.
   1.  For purposes of this section, “qualifying veteran” means a person who meets the definition of a veteran under section 35.1, is a resident of Iowa, and has a service-connected disability rating of one hundred percent as certified by the United States department of veterans affairs.
   2.  A qualifying veteran shall be allowed a credit on the qualifying veteran’s primary residence.
   3.  The amount of the credit under this section on a property shall be equal to the property tax owed on the property.
   4.  a.  Except as provided in paragraph “b”, the list of the names and addresses of individuals allowed a credit under this section and maintained by the county recorder, county treasurer, county assessor, city assessor, or other government body is confidential information and shall not be disseminated to any person unless otherwise ordered by a court or released by the lawful custodian of the records pursuant to state or federal law. The county recorder, county treasurer, county assessor, city assessor, or other government body responsible for maintaining the names and addresses of individuals allowed a credit under this section may display the credit on individual paper records and individual electronic records, including display on an internet site.
   b.  Upon request, a county recorder, county assessor, city assessor, or other entity may share information as described in paragraph “a” with a county veterans service officer for purposes of providing information on benefits and services available to veterans and their families.
    Sec. 5.  NEW SECTION.  426D.2  Computation by auditor.
   On or before August 1 of each year, the county auditor shall certify to the county treasurer all claims for disabled veteran tax credits that have been allowed by the board of supervisors. Such certificate shall list the total amount of dollars, listed by taxing district in the county, due for disabled veteran tax credits claimed and allowed. The county treasurer shall certify to the department of revenue the amount of dollars, listed by taxing district in the county, due for disabled veteran tax credits claimed and allowed.
    Sec. 6.  NEW SECTION.  426D.3  Certification by director of revenue.
   Sums distributable from the general fund of the state shall be allocated annually to the counties of the state. On September 15 of each year, the director of revenue shall certify and the department of administrative services shall draw warrants to the treasurer of each county payable from the general fund of the state in the amount claimed. Payments shall be made to the treasurer of each county no later than September 30 of each year.
    Sec. 7.  NEW SECTION.  426D.4  Proportionate shares to districts.
   The amount of credits received under this chapter shall be apportioned by each county treasurer to the several taxing districts. Each taxing district shall receive its share of the disabled veteran tax credit allowed in the taxing district on a property in an amount equal to the proportion of the levy made by the taxing district in relation to the total of all levies made on the property.
    Sec. 8.  NEW SECTION.  426D.5  Setting aside allowance.
   If the department of revenue determines that a claim for disabled veteran tax credit has been allowed by a board of supervisors that is not justifiable under the law and not substantiated by proper facts, the department may, at any time within thirty-six months from July 1 of the year in which the claim is allowed, set aside the allowance. Notice of the disallowance shall be given to the county auditor of the county in which the claim has been improperly granted and a written notice of the disallowance shall also be addressed to the claimant at the claimant’s last known address. The claimant or the board of supervisors may appeal to the director of revenue within thirty days from the date of the notice of disallowance. The director shall grant a hearing and if, upon the hearing, the director determines that the disallowance was incorrect, the director shall set aside the disallowance. The director shall notify the claimant and the board of supervisors of the result of the hearing. The claimant or the board of supervisors may seek judicial review of the action of the director of revenue in accordance with chapter 17A. If a claim is disallowed by the department of revenue and not appealed to the director of revenue or appealed to the director of revenue and subsequently upheld upon final resolution, including judicial review, the credits allowed and paid from the general fund of the state become a lien upon the property on which the credit was originally granted if the property is still owned by the claimant and not a bona fide purchaser. The amount owing on the lien shall be collected by the county treasurer in the same manner as other taxes, and the collections shall be returned to the department of revenue and credited to the general fund of the state. The director of revenue may institute legal proceedings against a disabled veteran tax credit claimant for the collection of payments made on disallowed credits.
    Sec. 9.  NEW SECTION.  426D.6  Forms —— rules.
   1.  The director of revenue shall prescribe the form for making a verified statement and designating property for the disabled veteran tax credit and such other forms as may be necessary for the proper administration of this chapter. The department of revenue shall forward to each county auditor prescribed sample forms.
   2.  The department of revenue shall adopt rules pursuant to chapter 17A to implement and administer this chapter.
    Sec. 10.  NEW SECTION.  426D.7  Excess remitted —— appeals.
   1.  If the amount of credit apportioned to any property eligible for a disabled veteran tax credit under this chapter in any year shall exceed the total tax, exclusive of any special assessments levied against such property eligible for the disabled veteran tax credit, then the excess shall be remitted by the county treasurer to the department of revenue to be redeposited in the general fund of the state and reallocated the following year by the department.
   2.  a.  If any claim for a credit made has been denied by the board of supervisors, and the action is subsequently reversed on appeal, the credit shall be allowed on the assessed valuation, not to exceed the amount of the disabled veteran tax credit involved in the appeal, as was allowed on other disabled veteran tax credit valuations for the year or years in question, and the director of revenue, the county auditor, and the county treasurer shall credit and change their books and records accordingly.
   b.  If the appealing taxpayer has paid one or both of the installments of the tax payable in the year or years in question on the disabled veteran tax credit valuation, remittance shall be made to the county treasurer in the amount of such credit.
   c.  The amount of the credit shall be allocated and paid from the surplus redeposited in the general fund of the state provided for in subsection 1.
    Sec. 11.  NEW SECTION.  426D.8  Erroneous credits.
   If any claim is allowed, and subsequently reversed on appeal, any credit shall be void, and the amount of the credit shall be charged against the property in question, and the director of revenue, the county auditor, and the county treasurer shall correct their books and records. The amount of the erroneous credit, when collected, shall be returned by the county treasurer to the general fund of the state.
    Sec. 12.  NEW SECTION.  426D.9  Allowance —— continuing effectiveness.
   1.  The assessor shall retain a permanent file of current disabled veteran tax credit claims filed in the assessor’s office. The assessor shall file a notice of transfer of property for which a claim is filed when notice is received from the office of the county recorder, from the person who sold or transferred the property, or from the personal representative of a deceased claimant.
   2.  The county recorder shall give notice to the assessor of each transfer of title filed in the recorder’s office. The notice shall describe the property transferred, the name of the person transferring the title to the property, and the name of the person to whom title to the property has been transferred.
   3.  Not later than July 6 of each year, the assessor shall remit the claims and designations of property to the county auditor with the assessor’s recommendation for allowance or disallowance. If the assessor recommends disallowance of a claim, the assessor shall submit the reasons for the recommendation, in writing, to the county auditor.
   4.  The county auditor shall forward the claims to the board of supervisors. The board shall allow or disallow the claims. If the board disallows a claim, it shall send written notice, by mail, to the claimant at the claimant’s last known address. The notice shall state the reasons for disallowing the claim for the credit. The board is not required to send notice that a claim is disallowed if the claimant voluntarily withdraws the claim.
   5.  Any person whose claim is denied under the provisions of this chapter may appeal from the action of the board of supervisors in the district court of the county in which said claimed disabled veteran tax credit is situated by giving written notice of such appeal to the county auditor of said county within twenty days from the date of mailing of notice of such action by the board of supervisors.
   6.  Upon adoption of a resolution by the county board of supervisors, any person may request, in writing, from the appropriate assessor forms for the filing for a disabled veteran tax credit. The person may complete the form, which shall include a statement claiming the disabled veteran tax credit and designating the property upon which the tax credit is claimed, and mail or return it to the appropriate assessor. The signature of the claimant on the claim shall be considered the claimant’s acknowledgment that all statements and facts entered on the form are correct to the best of the claimant’s knowledge.
    Sec. 13.  NEW SECTION.  426D.10  Penalty.
   Any person making a false affidavit for the purpose of obtaining the credit provided for in this chapter or who knowingly receives the credit without being legally entitled to the credit, shall be guilty of a fraudulent practice.
    Sec. 14.  NEW SECTION.  426D.11  Appropriations.
   There is appropriated from the general fund of the state the amounts necessary to fund the credits provided under this chapter.
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 state services and benefits provided to veterans.
   DIVISION I —— VEHICLE REGISTRATION FEES —— VETERANS EXEMPT.  This division of the bill relates to registration fees for vehicles owned by veterans.
   Current law exempts seriously disabled veterans who have been provided with an automobile or other vehicle by the United States government from paying motor vehicle registration fees. The division exempts veterans with a service-connected disability rating of 100 percent as certified by the United States department of veterans affairs who reside in Iowa from paying annual vehicle registration fees for not more than three vehicles registered by the veteran, and provides for one free set of regular registration plates for each vehicle. In lieu of the set of regular registration plates available without fee, a veteran may obtain a set of special registration plates or personalized registration plates by paying the additional fees associated with those plates under current law. Under current law, several special registration plates relating to service in the armed forces are available at no charge to eligible persons.
   The division also exempts veterans with a service-connected disability rating of 100 percent from paying a title fee and provides that the department of transportation may waive any administrative fee related to vehicle ownership for such a veteran.
   DIVISION II —— DISABLED VETERAN PROPERTY TAX CREDIT. This division creates a property tax credit for certain veterans.
   The division defines “qualifying veteran” as a person who meets the definition of a veteran under Code section 35.1 (veterans affairs), is a resident of Iowa, and has a service-connected disability rating of 100 percent as certified by the United States department of veterans affairs.
   The division allows a qualifying veteran a credit on a qualifying veteran’s primary residence. The amount of the credit on a property is equal to the property tax owed on the property.
   Except upon a county veterans service officer’s request for the purposes of providing information on benefits and services available to veterans and their families, the division makes confidential the list of the names and addresses of individuals allowed a credit under the division and maintained by the county recorder, county treasurer, county assessor, city assessor, or other government body. The division prohibits this information from being disseminated to any person unless otherwise ordered by a court or released by the lawful custodian of the records pursuant to state or federal law. The county recorder, county treasurer, county assessor, city assessor, or other government body responsible for maintaining the names and addresses of individuals allowed a credit may display the credit on individual paper records and individual electronic records, including display on an internet site.
   The division requires the department of revenue, the department of administrative services, county auditors, county treasurers, and assessors to administer the disabled veteran tax credit in a manner similar to the military service tax credit and exemptions in Code chapter 426A.
   The division makes any person who makes a false affidavit for the purpose of obtaining the disabled veteran tax credit or who knowingly receives the credit without being legally entitled to the credit guilty of a fraudulent practice. A fraudulent practice is punishable based on the amount of value involved, and may range from a simple misdemeanor punishable by confinement for no more than 30 days and a fine of at least $105 but not more than $855, to a class “C” felony punishable by confinement for no more than 10 years and a fine of at least $1,370 but not more than $13,660.
   The division appropriates from the general fund of the state amounts necessary to fund the disabled veteran tax credit.