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Senate Study Bill 1022 - IntroducedA Bill ForAn Act 1relating to the military service property tax exemption
2and credit by increasing the exemption amount, and including
3applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 426A.11, subsection 1, Code 2019, is
2amended by striking the subsection.
3 Sec. 2. Section 426A.11, subsection 2, Code 2019, is amended
4to read as follows:
52. The property, not to exceed one thousand eight hundred
6fifty-two three thousand seven hundred dollars in taxable
7value, of an honorably separated, retired, furloughed to a
8reserve, placed on inactive status, or discharged veteran, as
9defined in section 35.1, subsection 2, paragraph “a” or “b”.
10 Sec. 3. APPLICABILITY. This Act applies to property taxes
11due and payable in fiscal years beginning on or after July 1,
122020.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16Under current law, veterans of World War I are entitled
17to a property tax exemption of $2,778 in taxable value and
18honorably discharged veterans who served during other specific
19time periods are entitled to a property tax exemption of $1,852
20in taxable value. This bill increases the exemption amount for
21all eligible veterans to $3,700.
22Under current law, the state provides funding to local
23governments for the military service property tax exemption
24and credit up to $6.92 per $1,000 of assessed value of the
25exempt property. Code section 25B.7 provides that if a
26state appropriation made to fund a credit or exemption is not
27sufficient to fully fund the credit or exemption, the political
28subdivision shall be required to extend to the taxpayer only
29that portion of the credit or exemption estimated by the
30department of revenue to be funded by the state appropriation.
31The requirement for fully funding and the consequences of not
32fully funding under Code section 25B.7 apply to the military
33service property tax credit and exemption to the extent of
34$6.92 per $1,000 of assessed value of the exempt property.
35The bill applies to property taxes due and payable in fiscal
-1-1years beginning on or after July 1, 2020.
-2-md/jh
2and credit by increasing the exemption amount, and including
3applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 426A.11, subsection 1, Code 2019, is
2amended by striking the subsection.
3 Sec. 2. Section 426A.11, subsection 2, Code 2019, is amended
4to read as follows:
52. The property, not to exceed one thousand eight hundred
6fifty-two three thousand seven hundred dollars in taxable
7value, of an honorably separated, retired, furloughed to a
8reserve, placed on inactive status, or discharged veteran, as
9defined in section 35.1, subsection 2, paragraph “a” or “b”.
10 Sec. 3. APPLICABILITY. This Act applies to property taxes
11due and payable in fiscal years beginning on or after July 1,
122020.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
16Under current law, veterans of World War I are entitled
17to a property tax exemption of $2,778 in taxable value and
18honorably discharged veterans who served during other specific
19time periods are entitled to a property tax exemption of $1,852
20in taxable value. This bill increases the exemption amount for
21all eligible veterans to $3,700.
22Under current law, the state provides funding to local
23governments for the military service property tax exemption
24and credit up to $6.92 per $1,000 of assessed value of the
25exempt property. Code section 25B.7 provides that if a
26state appropriation made to fund a credit or exemption is not
27sufficient to fully fund the credit or exemption, the political
28subdivision shall be required to extend to the taxpayer only
29that portion of the credit or exemption estimated by the
30department of revenue to be funded by the state appropriation.
31The requirement for fully funding and the consequences of not
32fully funding under Code section 25B.7 apply to the military
33service property tax credit and exemption to the extent of
34$6.92 per $1,000 of assessed value of the exempt property.
35The bill applies to property taxes due and payable in fiscal
-1-1years beginning on or after July 1, 2020.
-2-md/jh