House Study Bill 326 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to state services and benefits provided to 1 disabled veterans, making penalties applicable, and making 2 appropriations. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2964YC (1) 91 sc/js
H.F. _____ DIVISION I 1 VEHICLE REGISTRATION FEES DISABLED VETERANS EXEMPT 2 Section 1. Section 321.46, subsection 2, Code 2025, is 3 amended to read as follows: 4 2. a. Upon filing the application for a new initial 5 registration and a new title, the applicant shall pay a title 6 fee of thirty dollars, an annual registration fee prorated for 7 the remaining unexpired months of the registration year, and a 8 fee for new registration if applicable. 9 b. A manufacturer applying for a certificate of title 10 pursuant to section 322G.12 shall pay a title fee of twenty 11 dollars. However, a title fee shall not be charged to a 12 manufactured or mobile home retailer applying for a certificate 13 of title for a used mobile home or manufactured home, titled 14 in Iowa, as required under section 321.45, subsection 4 . 15 The county treasurer, if satisfied of the genuineness and 16 regularity of the application, and in the case of a mobile 17 home or manufactured home, that taxes are not owing under 18 chapter 435 , and that applicant has complied with all the 19 requirements of this chapter , shall issue a new certificate 20 of title and, except for a mobile home, manufactured home, 21 or a vehicle returned to and accepted by a manufacturer as 22 described in section 322G.12 , a registration card to the 23 purchaser or transferee, shall cancel the prior registration 24 for the vehicle, and shall forward the necessary copies to the 25 department on the date of issuance, as prescribed in section 26 321.24 . Mobile homes or manufactured homes titled under 27 chapter 448 that have been subject under section 446.18 to a 28 public bidder sale in a county shall be titled in the countys 29 name, with no fee, and the county treasurer shall issue the 30 title. 31 c. A veteran, as defined in section 35.1, who is a resident 32 of the state of Iowa and has a service-connected disability 33 rating of one hundred percent as certified by the United States 34 department of veterans affairs shall not be charged a title 35 -1- LSB 2964YC (1) 91 sc/js 1/ 10
H.F. _____ fee. 1 Sec. 2. Section 321.105, Code 2025, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 6. A veteran, as defined in section 4 35.1, with a service-connected disability rating of one 5 hundred percent as certified by the United States department 6 of veterans affairs and who is not otherwise exempt under 7 subsection 5 is exempt from payment of annual registration 8 fees provided in this chapter for not more than three vehicles 9 registered by the veteran, if the veteran resides in Iowa. The 10 veteran shall be provided, without fee, one set of regular 11 registration plates for each vehicle. In lieu of the set of 12 regular registration plates available without fee, the veteran 13 may obtain a set of special registration plates or personalized 14 registration plates issued under section 321.34 by paying the 15 additional fees associated with those plates. 16 Sec. 3. NEW SECTION . 321.114 Disabled veterans fee waiver. 17 The department may waive any administrative fee related 18 to vehicle ownership for a veteran, as defined in section 19 35.1, who is a resident of the state of Iowa and has a 20 service-connected disability rating of one hundred percent as 21 certified by the United States department of veterans affairs. 22 DIVISION II 23 DISABLED VETERAN TAX CREDIT 24 Sec. 4. NEW SECTION . 426D.1 Disabled veteran property tax 25 credit. 26 1. For purposes of this section, qualifying veteran means 27 a person who meets the definition of a veteran under section 28 35.1, is a resident of Iowa, and has a service-connected 29 disability rating of one hundred percent as certified by the 30 United States department of veterans affairs. 31 2. A qualifying veteran shall be allowed a credit on the 32 qualifying veterans primary residence. 33 3. The amount of the credit under this section on a property 34 shall be equal to the property tax owed on the property. 35 -2- LSB 2964YC (1) 91 sc/js 2/ 10
H.F. _____ 4. a. Except as provided in paragraph b , the list of 1 the names and addresses of individuals allowed a credit under 2 this section and maintained by the county recorder, county 3 treasurer, county assessor, city assessor, or other government 4 body is confidential information and shall not be disseminated 5 to any person unless otherwise ordered by a court or released 6 by the lawful custodian of the records pursuant to state or 7 federal law. The county recorder, county treasurer, county 8 assessor, city assessor, or other government body responsible 9 for maintaining the names and addresses of individuals 10 allowed a credit under this section may display the credit on 11 individual paper records and individual electronic records, 12 including display on an internet site. 13 b. Upon request, a county recorder, county assessor, city 14 assessor, or other entity may share information as described 15 in paragraph a with a county veterans service officer for 16 purposes of providing information on benefits and services 17 available to veterans and their families. 18 Sec. 5. NEW SECTION . 426D.2 Computation by auditor. 19 On or before August 1 of each year, the county auditor shall 20 certify to the county treasurer all claims for disabled veteran 21 tax credits that have been allowed by the board of supervisors. 22 Such certificate shall list the total amount of dollars, listed 23 by taxing district in the county, due for disabled veteran 24 tax credits claimed and allowed. The county treasurer shall 25 certify to the department of revenue the amount of dollars, 26 listed by taxing district in the county, due for disabled 27 veteran tax credits claimed and allowed. 28 Sec. 6. NEW SECTION . 426D.3 Certification by director of 29 revenue. 30 Sums distributable from the general fund of the state 31 shall be allocated annually to the counties of the state. 32 On September 15 of each year, the director of revenue shall 33 certify and the department of administrative services shall 34 draw warrants to the treasurer of each county payable from the 35 -3- LSB 2964YC (1) 91 sc/js 3/ 10
H.F. _____ general fund of the state in the amount claimed. Payments 1 shall be made to the treasurer of each county no later than 2 September 30 of each year. 3 Sec. 7. NEW SECTION . 426D.4 Proportionate shares to 4 districts. 5 The amount of credits received under this chapter shall be 6 apportioned by each county treasurer to the several taxing 7 districts. Each taxing district shall receive its share of the 8 disabled veteran tax credit allowed in the taxing district on a 9 property in an amount equal to the proportion of the levy made 10 by the taxing district in relation to the total of all levies 11 made on the property. 12 Sec. 8. NEW SECTION . 426D.5 Setting aside allowance. 13 If the department of revenue determines that a claim for 14 disabled veteran tax credit has been allowed by a board of 15 supervisors that is not justifiable under the law and not 16 substantiated by proper facts, the department may, at any time 17 within thirty-six months from July 1 of the year in which 18 the claim is allowed, set aside the allowance. Notice of 19 the disallowance shall be given to the county auditor of the 20 county in which the claim has been improperly granted and a 21 written notice of the disallowance shall also be addressed 22 to the claimant at the claimants last known address. The 23 claimant or the board of supervisors may appeal to the 24 director of revenue within thirty days from the date of the 25 notice of disallowance. The director shall grant a hearing 26 and if, upon the hearing, the director determines that the 27 disallowance was incorrect, the director shall set aside the 28 disallowance. The director shall notify the claimant and 29 the board of supervisors of the result of the hearing. The 30 claimant or the board of supervisors may seek judicial review 31 of the action of the director of revenue in accordance with 32 chapter 17A. If a claim is disallowed by the department of 33 revenue and not appealed to the director of revenue or appealed 34 to the director of revenue and subsequently upheld upon final 35 -4- LSB 2964YC (1) 91 sc/js 4/ 10
H.F. _____ resolution, including judicial review, the credits allowed and 1 paid from the general fund of the state become a lien upon the 2 property on which the credit was originally granted if the 3 property is still owned by the claimant and not a bona fide 4 purchaser. The amount owing on the lien shall be collected by 5 the county treasurer in the same manner as other taxes, and 6 the collections shall be returned to the department of revenue 7 and credited to the general fund of the state. The director 8 of revenue may institute legal proceedings against a disabled 9 veteran tax credit claimant for the collection of payments made 10 on disallowed credits. 11 Sec. 9. NEW SECTION . 426D.6 Forms rules. 12 1. The director of revenue shall prescribe the form for 13 making a verified statement and designating property for the 14 disabled veteran tax credit and such other forms as may be 15 necessary for the proper administration of this chapter. The 16 department of revenue shall forward to each county auditor 17 prescribed sample forms. 18 2. The department of revenue shall adopt rules pursuant to 19 chapter 17A to implement and administer this chapter. 20 Sec. 10. NEW SECTION . 426D.7 Excess remitted appeals. 21 1. If the amount of credit apportioned to any property 22 eligible for a disabled veteran tax credit under this chapter 23 in any year shall exceed the total tax, exclusive of any 24 special assessments levied against such property eligible 25 for the disabled veteran tax credit, then the excess shall 26 be remitted by the county treasurer to the department of 27 revenue to be redeposited in the general fund of the state and 28 reallocated the following year by the department. 29 2. a. If any claim for a credit made has been denied 30 by the board of supervisors, and the action is subsequently 31 reversed on appeal, the credit shall be allowed on the assessed 32 valuation, not to exceed the amount of the disabled veteran 33 tax credit involved in the appeal, as was allowed on other 34 disabled veteran tax credit valuations for the year or years in 35 -5- LSB 2964YC (1) 91 sc/js 5/ 10
H.F. _____ question, and the director of revenue, the county auditor, and 1 the county treasurer shall credit and change their books and 2 records accordingly. 3 b. If the appealing taxpayer has paid one or both of 4 the installments of the tax payable in the year or years 5 in question on the disabled veteran tax credit valuation, 6 remittance shall be made to the county treasurer in the amount 7 of such credit. 8 c. The amount of the credit shall be allocated and paid 9 from the surplus redeposited in the general fund of the state 10 provided for in subsection 1. 11 Sec. 11. NEW SECTION . 426D.8 Erroneous credits. 12 If any claim is allowed, and subsequently reversed on 13 appeal, any credit shall be void, and the amount of the 14 credit shall be charged against the property in question, and 15 the director of revenue, the county auditor, and the county 16 treasurer shall correct their books and records. The amount of 17 the erroneous credit, when collected, shall be returned by the 18 county treasurer to the general fund of the state. 19 Sec. 12. NEW SECTION . 426D.9 Allowance continuing 20 effectiveness. 21 1. The assessor shall retain a permanent file of current 22 disabled veteran tax credit claims filed in the assessors 23 office. The assessor shall file a notice of transfer of 24 property for which a claim is filed when notice is received 25 from the office of the county recorder, from the person 26 who sold or transferred the property, or from the personal 27 representative of a deceased claimant. 28 2. The county recorder shall give notice to the assessor 29 of each transfer of title filed in the recorders office. The 30 notice shall describe the property transferred, the name of the 31 person transferring the title to the property, and the name of 32 the person to whom title to the property has been transferred. 33 3. Not later than July 6 of each year, the assessor shall 34 remit the claims and designations of property to the county 35 -6- LSB 2964YC (1) 91 sc/js 6/ 10
H.F. _____ auditor with the assessors recommendation for allowance 1 or disallowance. If the assessor recommends disallowance 2 of a claim, the assessor shall submit the reasons for the 3 recommendation, in writing, to the county auditor. 4 4. The county auditor shall forward the claims to the board 5 of supervisors. The board shall allow or disallow the claims. 6 If the board disallows a claim, it shall send written notice, 7 by mail, to the claimant at the claimants last known address. 8 The notice shall state the reasons for disallowing the claim 9 for the credit. The board is not required to send notice that 10 a claim is disallowed if the claimant voluntarily withdraws the 11 claim. 12 5. Any person whose claim is denied under the provisions 13 of this chapter may appeal from the action of the board of 14 supervisors in the district court of the county in which said 15 claimed disabled veteran tax credit is situated by giving 16 written notice of such appeal to the county auditor of said 17 county within twenty days from the date of mailing of notice of 18 such action by the board of supervisors. 19 6. Upon adoption of a resolution by the county board of 20 supervisors, any person may request, in writing, from the 21 appropriate assessor forms for the filing for a disabled 22 veteran tax credit. The person may complete the form, which 23 shall include a statement claiming the disabled veteran tax 24 credit and designating the property upon which the tax credit 25 is claimed, and mail or return it to the appropriate assessor. 26 The signature of the claimant on the claim shall be considered 27 the claimants acknowledgment that all statements and facts 28 entered on the form are correct to the best of the claimants 29 knowledge. 30 Sec. 13. NEW SECTION . 426D.10 Penalty. 31 Any person making a false affidavit for the purpose of 32 obtaining the credit provided for in this chapter or who 33 knowingly receives the credit without being legally entitled to 34 the credit, shall be guilty of a fraudulent practice. 35 -7- LSB 2964YC (1) 91 sc/js 7/ 10
H.F. _____ Sec. 14. NEW SECTION . 426D.11 Appropriations. 1 There is appropriated from the general fund of the state 2 the amounts necessary to fund the credits provided under this 3 chapter. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanations substance by the members of the general assembly. 7 This bill relates to state services and benefits provided to 8 veterans. 9 DIVISION I VEHICLE REGISTRATION FEES VETERANS EXEMPT. 10 This division of the bill relates to registration fees for 11 vehicles owned by veterans. 12 Current law exempts seriously disabled veterans who have 13 been provided with an automobile or other vehicle by the United 14 States government from paying motor vehicle registration 15 fees. The division exempts veterans with a service-connected 16 disability rating of 100 percent as certified by the United 17 States department of veterans affairs who reside in Iowa from 18 paying annual vehicle registration fees for not more than three 19 vehicles registered by the veteran, and provides for one free 20 set of regular registration plates for each vehicle. In lieu 21 of the set of regular registration plates available without 22 fee, a veteran may obtain a set of special registration plates 23 or personalized registration plates by paying the additional 24 fees associated with those plates under current law. Under 25 current law, several special registration plates relating to 26 service in the armed forces are available at no charge to 27 eligible persons. 28 The division also exempts veterans with a service-connected 29 disability rating of 100 percent from paying a title fee and 30 provides that the department of transportation may waive any 31 administrative fee related to vehicle ownership for such a 32 veteran. 33 DIVISION II DISABLED VETERAN PROPERTY TAX CREDIT. This 34 division creates a property tax credit for certain veterans. 35 -8- LSB 2964YC (1) 91 sc/js 8/ 10
H.F. _____ The division defines qualifying veteran as a person 1 who meets the definition of a veteran under Code section 2 35.1 (veterans affairs), is a resident of Iowa, and has a 3 service-connected disability rating of 100 percent as certified 4 by the United States department of veterans affairs. 5 The division allows a qualifying veteran a credit on a 6 qualifying veterans primary residence. The amount of the 7 credit on a property is equal to the property tax owed on the 8 property. 9 Except upon a county veterans service officers request 10 for the purposes of providing information on benefits and 11 services available to veterans and their families, the division 12 makes confidential the list of the names and addresses of 13 individuals allowed a credit under the division and maintained 14 by the county recorder, county treasurer, county assessor, city 15 assessor, or other government body. The division prohibits 16 this information from being disseminated to any person 17 unless otherwise ordered by a court or released by the lawful 18 custodian of the records pursuant to state or federal law. 19 The county recorder, county treasurer, county assessor, city 20 assessor, or other government body responsible for maintaining 21 the names and addresses of individuals allowed a credit may 22 display the credit on individual paper records and individual 23 electronic records, including display on an internet site. 24 The division requires the department of revenue, the 25 department of administrative services, county auditors, county 26 treasurers, and assessors to administer the disabled veteran 27 tax credit in a manner similar to the military service tax 28 credit and exemptions in Code chapter 426A. 29 The division makes any person who makes a false affidavit 30 for the purpose of obtaining the disabled veteran tax credit 31 or who knowingly receives the credit without being legally 32 entitled to the credit guilty of a fraudulent practice. A 33 fraudulent practice is punishable based on the amount of value 34 involved, and may range from a simple misdemeanor punishable 35 -9- LSB 2964YC (1) 91 sc/js 9/ 10
H.F. _____ by confinement for no more than 30 days and a fine of at least 1 $105 but not more than $855, to a class C felony punishable 2 by confinement for no more than 10 years and a fine of at least 3 $1,370 but not more than $13,660. 4 The division appropriates from the general fund of the state 5 amounts necessary to fund the disabled veteran tax credit. 6 -10- LSB 2964YC (1) 91 sc/js 10/ 10