House File 565 - Introduced HOUSE FILE 565 BY SIECK , JENEARY , BAGNIEWSKI , MOORE , COLLINS , GOSA , SHIPLEY , MOMMSEN , SIEGRIST , C. JOHNSON , WENGRYN , JONES , VONDRAN , DETERMANN , THOMPSON , and LEVIN 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 TLSB 2110YH (5) 91 jm/md
H.F. 565 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 explanations 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 -1- LSB 2110YH (5) 91 jm/md 1/ 2
H.F. 565 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. 5 -2- LSB 2110YH (5) 91 jm/md 2/ 2