Bill Text: IA HSB271 | 2025-2026 | 91st General Assembly | Introduced
Bill Title: A bill for an act establishing a partial exemption on property taxes for certain residential properties sold in disaster areas.
Spectrum: Committee Bill
Status: (Introduced) 2025-02-27 - Subcommittee: Jones, Siegrist and Wilson. H.J. 464. [HSB271 Detail]
Download: Iowa-2025-HSB271-Introduced.html
House
Study
Bill
271
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
KAUFMANN)
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
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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.
A
4
residential
property
sold
by
the
United
States
department
of
5
housing
and
urban
development
to
an
owner
who
is
receiving
the
6
homestead
tax
credit
under
section
425.1
on
the
residential
7
property
shall
be
partially
exempt
from
taxation
if
the
8
sale
was
to
provide
housing
to
individuals
following
a
major
9
disaster
or
disaster
emergency
and
the
residential
property
was
10
located
in
the
major
disaster
area
declared
by
the
president
11
of
the
United
States
or
the
disaster
emergency
area
for
which
12
the
governor
has
proclaimed
a
state
of
disaster
emergency.
The
13
exemption
is
for
a
period
of
four
assessment
years.
The
amount
14
of
the
partial
exemption
is
equal
to
a
percent
of
the
actual
15
value,
determined
as
follows:
16
a.
For
the
first
full
assessment
year
occurring
after
the
17
sale,
eighty
percent.
18
b.
For
the
second
full
assessment
year
occurring
after
the
19
sale,
sixty
percent.
20
c.
For
the
third
full
assessment
year
occurring
after
the
21
sale,
forty
percent.
22
d.
For
the
fourth
full
assessment
year
occurring
after
the
23
sale,
twenty
percent.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
A
residential
property
sold
by
the
United
States
department
28
of
housing
and
urban
development
(HUD)
to
an
owner
who
is
29
receiving
the
homestead
tax
credit
on
the
residential
property
30
shall
be
partially
exempt
from
taxation
if
the
sale
was
to
31
provide
housing
to
individuals
following
a
major
disaster
or
32
disaster
emergency
and
the
residential
property
was
located
in
33
the
major
disaster
or
disaster
emergency
area.
The
exemption
34
is
for
a
four-year
period
beginning
with
the
first
full
35
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assessment
year
after
the
sale.
This
bill
provides
an
80
1
percent
exemption
on
the
actual
value
in
the
first
assessment
2
year,
a
60
percent
in
the
second
year,
a
40
percent
in
the
3
third
year,
a
20
percent
in
the
fourth
year,
and
the
exemption
4
expires
in
the
fifth
year.
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