Iowa 2023-2024 Regular Session

Iowa House Bill HF141

Introduced
1/26/23  
Introduced
1/26/23  

Caption

A bill for an act relating to the military service property tax exemption and credit and including applicability provisions.(Formerly HSB 22.)

Impact

The proposed changes in HF141 will directly affect state laws regarding property taxation as they relate to veterans. The increase in exemption will apply to property taxes that are due and payable starting in the fiscal year of July 1, 2023, demonstrating a clear timeline for implementation. The state currently funds these exemptions, and the bill also outlines that if funding is insufficient, local governments would have to limit the credit or exemption accordingly. This could place additional pressure on local governments to manage their budgets in relation to veteran exemptions.

Summary

House File 141 (HF141) proposes significant changes to the military service property tax exemption and credit system in Iowa. The bill seeks to increase the property tax exemption amount for honorably discharged veterans from $1,852 to $4,000, thereby providing a more substantial financial benefit to those who have served in the military. This adjustment is intended to better support veterans by alleviating some of the financial burdens associated with property ownership and taxation, particularly as they transition back into civilian life.

Contention

While the intent of HF141 is to provide more substantial support to veterans, there may be concerns about the implications for local government funding. Some local officials might argue that increased exemptions could reduce the tax revenue available for essential services, thus raising questions about how these changes would be funded in practice. As the state appropriates funds to cover these exemptions up to a specific amount per $1,000 of assessed property value, any shortfall could lead to uneven benefits across different jurisdictions, potentially creating disparities in support for veterans depending on local economic conditions.

Companion Bills

IA HSB22

Related A bill for an act relating to the military service property tax exemption and credit and including applicability provisions.(See HF 141.)

IA SSB1138

Related A bill for an act relating to the military service property tax exemption and credit and including applicability provisions.(See SF 280.)

IA SF280

Similar To A bill for an act relating to the military service property tax exemption and credit and including applicability provisions.(Formerly SSB 1138.)

Previously Filed As

IA SF280

A bill for an act relating to the military service property tax exemption and credit and including applicability provisions.(Formerly SSB 1138.)

IA HSB22

A bill for an act relating to the military service property tax exemption and credit and including applicability provisions.(See HF 141.)

IA SSB1138

A bill for an act relating to the military service property tax exemption and credit and including applicability provisions.(See SF 280.)

IA SF2399

A bill for an act relating to persons who qualify for the military service tax exemption, and including applicability provisions.

IA SF29

A bill for an act relating to property tax exemptions by changing the homestead tax exemption to a credit for owners attaining sixty-five years of age and increasing the military service tax exemption, and including effective date and retroactive applicability provisions.

IA SF569

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, making penalties applicable, and including effective date, retroactive applicability, and applicability provisions. (Formerly SSB 1218.)

IA SSB1218

A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, making penalties applicable, and including effective date, retroactive applicability, and applicability provisions.(See SF 569.)

IA SF550

A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the water service tax, property taxes, transit funding, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, modifying allocations of road use tax fund moneys, making appropriations, and including effective date, retroactive applicability, and applicability provisions.(Formerly SSB 1125.)

IA HF206

A bill for an act relating to the assessment of property containing certain aboveground storage tanks and including effective date and retroactive applicability provisions.(Formerly HSB 67.)

IA SSB1125

A bill for an act relating to state and local revenue and finances by modifying sales and use taxes, the charitable conservation contribution tax credit available against individual and corporate income taxes, the water service tax, property taxes, transit funding, and local option taxes, crediting moneys to the natural resources and outdoor recreation trust fund, making appropriations, and including effective date, retroactive applicability, and applicability provisions.(See SF 550.)

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DC B25-0486

Uniform Community Property Disposition at Death Act of 2023

CA SB964

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CA SB603

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CA SB1091

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HI HB1398

Relating To Property.