Senate Study Bill 1138 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON VETERANS AFFAIRS BILL BY CHAIRPERSON REICHMAN) A BILL FOR An Act relating to the military service property tax exemption 1 and credit and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1476XC (2) 90 md/jh
S.F. _____ Section 1. Section 426A.11, subsection 1, Code 2023, is 1 amended by striking the subsection. 2 Sec. 2. Section 426A.11, subsection 2, Code 2023, is amended 3 to read as follows: 4 2. The property, not to exceed one thousand eight hundred 5 fifty-two four thousand dollars in taxable value, of an 6 honorably separated, retired, furloughed to a reserve, placed 7 on inactive status, or discharged veteran, as defined in 8 section 35.1, subsection 2 , paragraph a or b . 9 Sec. 3. APPLICABILITY. This Act applies to property taxes 10 due and payable in fiscal years beginning on or after July 1, 11 2023. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanations substance by the members of the general assembly. 15 This bill relates to the military service property tax 16 exemption and credit. 17 Under current law, veterans of World War I are entitled 18 to a property tax exemption of $2,778 in taxable value and 19 honorably discharged veterans who served during other specific 20 time periods are entitled to a property tax exemption of $1,852 21 in taxable value. The bill increases the exemption amount for 22 all eligible veterans to $4,000. 23 Under current law, the state provides funding to local 24 governments for the military service property tax exemption 25 and credit up to $6.92 per $1,000 of assessed value of the 26 exempt property. Code section 25B.7 provides that if a 27 state appropriation made to fund a credit or exemption is not 28 sufficient to fully fund the credit or exemption, the political 29 subdivision shall be required to extend to the taxpayer only 30 that portion of the credit or exemption estimated by the 31 department of revenue to be funded by the state appropriation. 32 The requirement for fully funding and the consequences of not 33 fully funding under Code section 25B.7 apply to the military 34 service property tax credit and exemption to the extent of 35 -1- LSB 1476XC (2) 90 md/jh 1/ 2
S.F. _____ $6.92 per $1,000 of assessed value of the exempt property. 1 The bill applies to property taxes due and payable in fiscal 2 years beginning on or after July 1, 2023. 3 -2- LSB 1476XC (2) 90 md/jh 2/ 2