House File 141 - IntroducedA Bill ForAn Act 1relating to the military service property tax exemption
2and credit and including applicability provisions.
1   Section 1.  Section 426A.11, subsection 1, Code 2023, is
2amended by striking the subsection.
3   Sec. 2.  Section 426A.11, subsection 2, Code 2023, is amended
4to read as follows:
   52.  The property, not to exceed one thousand eight hundred
 four thousand dollars in taxable value, of an
7honorably separated, retired, furloughed to a reserve, placed
8on inactive status, or discharged veteran, as defined in
9section 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,
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
   16This bill relates to the military service property tax
17exemption and credit.
   18Under current law, veterans of World War I are entitled
19to a property tax exemption of $2,778 in taxable value and
20honorably discharged veterans who served during other specific
21time periods are entitled to a property tax exemption of $1,852
22in taxable value. The bill increases the exemption amount for
23all eligible veterans to $4,000.
   24Under current law, the state provides funding to local
25governments for the military service property tax exemption
26and credit up to $6.92 per $1,000 of assessed value of the
27exempt property. Code section 25B.7 provides that if a
28state appropriation made to fund a credit or exemption is not
29sufficient to fully fund the credit or exemption, the political
30subdivision shall be required to extend to the taxpayer only
31that portion of the credit or exemption estimated by the
32department of revenue to be funded by the state appropriation.
33The requirement for fully funding and the consequences of not
34fully funding under Code section 25B.7 apply to the military
35service property tax credit and exemption to the extent of
-1-1$6.92 per $1,000 of assessed value of the exempt property.
   2The bill applies to property taxes due and payable in fiscal
3years beginning on or after July 1, 2023.