Bill Text: IA SF2299 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the disabled veteran homestead tax credit and the military service property tax exemption and credit and including effective date, applicability, and retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-02-17 - Subcommittee: Edler, Costello, and Giddens. S.J. 321. [SF2299 Detail]
Download: Iowa-2021-SF2299-Introduced.html
Senate
File
2299
-
Introduced
SENATE
FILE
2299
BY
BOULTON
A
BILL
FOR
An
Act
relating
to
the
disabled
veteran
homestead
tax
credit
1
and
the
military
service
property
tax
exemption
and
credit
2
and
including
effective
date,
applicability,
and
retroactive
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
DISABLED
VETERAN
HOMESTEAD
CREDIT
2
Section
1.
Section
425.15,
Code
2022,
is
amended
by
adding
3
the
following
new
subsection:
4
NEW
SUBSECTION
.
1A.
If
the
owner
of
a
homestead
allowed
5
a
credit
under
this
subchapter
does
not
meet
the
criteria
6
of
subsection
1
and
is
any
of
the
following,
the
amount
7
of
the
credit
allowed
on
the
homestead
from
the
homestead
8
credit
fund
shall
be
the
greater
of
the
amount
of
the
credit
9
authorized
under
section
425.1,
subsection
2,
or
a
percentage
10
of
the
entire
amount
of
the
tax
levied
on
the
homestead
that
11
is
equivalent
to
the
owner’s
permanent
service-connected
12
disability
rating
percentage:
13
a.
A
veteran
as
defined
in
section
35.1
with
a
permanent
14
service-connected
disability
rating
that
is
less
than
one
15
hundred
percent,
as
certified
by
the
United
States
department
16
of
veterans
affairs.
17
b.
A
former
member
of
the
national
guard
of
any
state
who
18
otherwise
meets
the
service
requirements
of
section
35.1,
19
subsection
2,
paragraph
“b”
,
subparagraph
(2)
or
(7),
with
a
20
permanent
service-connected
disability
rating
of
less
than
one
21
hundred
percent,
as
certified
by
the
United
States
department
22
of
veterans
affairs.
23
Sec.
2.
Section
425.15,
subsection
2,
paragraph
a,
Code
24
2022,
is
amended
to
read
as
follows:
25
a.
For
an
owner
described
in
subsection
1
,
paragraph
“a”
,
26
“b”
,
or
“c”
,
or
subsection
1A,
the
credit
allowed
shall
be
27
continued
to
the
estate
of
an
owner
who
is
deceased
or
the
28
surviving
spouse
and
any
child,
as
defined
in
section
234.1
,
29
who
are
the
beneficiaries
of
a
deceased
owner,
so
long
as
the
30
surviving
spouse
remains
unmarried.
31
Sec.
3.
Section
425.15,
subsection
3,
Code
2022,
is
amended
32
to
read
as
follows:
33
3.
An
owner
or
a
beneficiary
of
an
owner
who
elects
to
34
secure
the
credit
provided
in
this
section
under
the
conditions
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described
in
subsection
1
is
not
eligible
for
any
other
real
1
property
tax
exemption
provided
by
law
for
veterans
of
military
2
service.
3
Sec.
4.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
4
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
5
enactment.
6
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
division
of
this
7
Act
applies
retroactively
to
homestead
credit
claims
filed
on
8
or
after
January
1,
2022,
for
credits
allowed
against
property
9
taxes
due
and
payable
in
fiscal
years
beginning
on
or
after
10
July
1,
2023.
11
DIVISION
II
12
MILITARY
SERVICE
CREDIT
13
Sec.
6.
Section
426A.11,
subsection
1,
Code
2022,
is
amended
14
by
striking
the
subsection.
15
Sec.
7.
Section
426A.11,
subsection
2,
Code
2022,
is
amended
16
to
read
as
follows:
17
2.
The
property,
not
to
exceed
one
thousand
eight
hundred
18
fifty-two
fifteen
thousand
dollars
in
taxable
value,
of
an
19
honorably
separated,
retired,
furloughed
to
a
reserve,
placed
20
on
inactive
status,
or
discharged
veteran,
as
defined
in
21
section
35.1,
subsection
2
,
paragraph
“a”
or
“b”
.
22
Sec.
8.
APPLICABILITY.
This
division
of
this
Act
applies
23
to
property
taxes
due
and
payable
in
fiscal
years
beginning
on
24
or
after
July
1,
2022.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
the
disabled
veteran
homestead
credit
29
and
the
military
service
property
tax
exemption
and
credit.
30
Current
Code
section
425.15
provides
a
homestead
credit
31
to
the
owner
of
a
homestead
for
the
full
amount
of
property
32
tax
levied
if
the
owner
is
any
of
the
following:
(1)
a
33
veteran
of
any
of
the
military
forces
of
the
United
States
34
who
acquired
the
homestead
under
specified
federal
programs;
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(2)
a
veteran
with
a
permanent
service-connected
disability
1
rating
of
100
percent
or
a
permanent
and
total
disability
2
rating
based
on
individual
unemployability
that
is
compensated
3
at
the
100
percent
disability
rate;
(3)
a
former
member
of
4
the
national
guard
of
any
state
who
meets
specified
service
5
requirements
with
a
permanent
service-connected
disability
6
rating
of
100
percent
or
a
permanent
and
total
disability
7
rating
based
on
individual
unemployability
that
is
compensated
8
at
the
100
percent
disability
rate;
or
(4)
an
individual
who
9
is
a
surviving
spouse
or
a
child
and
who
is
receiving
federal
10
dependency
and
indemnity
compensation.
11
Division
I
of
the
bill
creates
two
additional
categories
12
of
disabled
veterans
who
qualify
for
a
homestead
credit
13
under
Code
section
425.15.
Under
the
bill,
if
the
owner
of
14
a
homestead
does
not
meet
the
criteria
under
current
law
for
15
a
disabled
veteran
homestead
tax
credit
and
is
either
of
the
16
following,
the
amount
of
the
credit
allowed
on
the
homestead
17
is
the
greater
of
the
amount
of
the
regular
homestead
credit
18
(an
amount
equal
to
the
actual
levy
on
the
first
$4,850
dollars
19
of
actual
value)
or
a
percentage
of
the
entire
amount
of
the
20
tax
levied
on
the
homestead
that
is
equivalent
to
the
owner’s
21
service-connected
disability
rating
percentage:
(1)
a
veteran
22
with
a
permanent
service-connected
disability
rating
that
is
23
less
than
100
percent
or
(2)
a
former
member
of
the
national
24
guard
of
any
state
who
meets
specified
service
requirements
25
with
a
permanent
service-connected
disability
rating
of
less
26
than
100
percent.
27
Division
I
of
the
bill
takes
effect
upon
enactment
and
28
applies
retroactively
to
homestead
credit
claims
filed
on
or
29
after
January
1,
2022,
for
credits
allowed
against
property
30
taxes
due
and
payable
in
fiscal
years
beginning
on
or
after
31
July
1,
2023.
32
Under
current
law,
veterans
of
World
War
I
are
entitled
to
a
33
property
tax
exemption
of
$2,778
in
taxable
value
and
honorably
34
discharged
veterans
who
served
during
other
specific
time
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periods
are
entitled
to
a
property
tax
exemption
of
$1,852
in
1
taxable
value.
Division
II
of
the
bill
increases
the
exemption
2
amount
for
all
eligible
veterans
to
$15,000.
3
Under
current
law,
the
state
provides
funding
to
local
4
governments
for
the
military
service
property
tax
exemption
5
and
credit
up
to
$6.92
per
$1,000
of
assessed
value
of
the
6
exempt
property.
Code
section
25B.7
provides
that
if
a
7
state
appropriation
made
to
fund
a
credit
or
exemption
is
not
8
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
9
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
10
that
portion
of
the
credit
or
exemption
estimated
by
the
11
department
of
revenue
to
be
funded
by
the
state
appropriation.
12
The
requirement
for
fully
funding
and
the
consequences
of
not
13
fully
funding
under
Code
section
25B.7
apply
to
the
military
14
service
property
tax
credit
and
exemption
to
the
extent
of
15
$6.92
per
$1,000
of
assessed
value
of
the
exempt
property.
16
Division
II
of
the
bill
applies
to
property
taxes
due
and
17
payable
in
fiscal
years
beginning
on
or
after
July
1,
2022.
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