Bill Text: IA HF163 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the disabled veteran homestead tax credit and including effective date and retroactive applicability provisions.(Formerly HF 37.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-03-28 - Subcommittee recommends passage. Vote Total: 3-0. [HF163 Detail]
Download: Iowa-2023-HF163-Introduced.html
House
File
163
-
Introduced
HOUSE
FILE
163
BY
COMMITTEE
ON
VETERANS
AFFAIRS
(SUCCESSOR
TO
HF
37)
A
BILL
FOR
An
Act
relating
to
the
disabled
veteran
homestead
tax
credit
1
and
including
effective
date
and
retroactive
applicability
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
425.15,
Code
2023,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
1A.
a.
For
homestead
credits
allowed
3
against
property
taxes
due
and
payable
in
the
fiscal
year
4
beginning
July
1,
2024,
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
an
amount
10
equal
to
a
percentage
of
the
entire
amount
of
the
tax
levied
11
on
the
homestead
that
is
equivalent
to
the
owner’s
permanent
12
service-connected
disability
rating
percentage:
13
(1)
A
veteran
as
defined
in
section
35.1
with
a
permanent
14
service-connected
disability
rating
that
is
less
than
one
15
hundred
percent
but
equal
to
or
greater
than
seventy
percent,
16
as
certified
by
the
United
States
department
of
veterans
17
affairs.
18
(2)
A
former
member
of
the
national
guard
of
any
state
19
who
otherwise
meets
the
service
requirements
of
section
35.1,
20
subsection
2,
paragraph
“b”
,
subparagraph
(2)
or
(7),
with
a
21
permanent
service-connected
disability
rating
of
less
than
one
22
hundred
percent
but
equal
to
or
greater
than
seventy
percent,
23
as
certified
by
the
United
States
department
of
veterans
24
affairs.
25
b.
For
homestead
credits
allowed
against
property
taxes
26
due
and
payable
in
the
fiscal
year
beginning
July
1,
2025,
27
if
the
owner
of
a
homestead
allowed
a
credit
under
this
28
subchapter
does
not
meet
the
criteria
of
subsection
1
and
is
29
any
of
the
following,
the
amount
of
the
credit
allowed
on
the
30
homestead
from
the
homestead
credit
fund
shall
be
the
greater
31
of
the
amount
of
the
credit
authorized
under
section
425.1,
32
subsection
2,
or
an
amount
equal
to
a
percentage
of
the
entire
33
amount
of
the
tax
levied
on
the
homestead
that
is
equivalent
34
to
the
owner’s
permanent
service-connected
disability
rating
35
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percentage:
1
(1)
A
veteran
as
defined
in
section
35.1
with
a
permanent
2
service-connected
disability
rating
that
is
less
than
one
3
hundred
percent
but
equal
to
or
greater
than
forty
percent,
as
4
certified
by
the
United
States
department
of
veterans
affairs.
5
(2)
A
former
member
of
the
national
guard
of
any
state
6
who
otherwise
meets
the
service
requirements
of
section
35.1,
7
subsection
2,
paragraph
“b”
,
subparagraph
(2)
or
(7),
with
a
8
permanent
service-connected
disability
rating
of
less
than
one
9
hundred
percent
but
equal
to
or
greater
than
forty
percent,
as
10
certified
by
the
United
States
department
of
veterans
affairs.
11
c.
For
homestead
credits
allowed
against
property
taxes
due
12
and
payable
in
the
fiscal
years
beginning
on
or
after
July
1,
13
2026,
if
the
owner
of
a
homestead
allowed
a
credit
under
this
14
subchapter
does
not
meet
the
criteria
of
subsection
1
and
is
15
any
of
the
following,
the
amount
of
the
credit
allowed
on
the
16
homestead
from
the
homestead
credit
fund
shall
be
the
greater
17
of
the
amount
of
the
credit
authorized
under
section
425.1,
18
subsection
2,
or
an
amount
equal
to
a
percentage
of
the
entire
19
amount
of
the
tax
levied
on
the
homestead
that
is
equivalent
20
to
the
owner’s
permanent
service-connected
disability
rating
21
percentage:
22
(1)
A
veteran
as
defined
in
section
35.1
with
a
permanent
23
service-connected
disability
rating
that
is
less
than
one
24
hundred
percent
but
equal
to
or
greater
than
ten
percent,
as
25
certified
by
the
United
States
department
of
veterans
affairs.
26
(2)
A
former
member
of
the
national
guard
of
any
state
27
who
otherwise
meets
the
service
requirements
of
section
35.1,
28
subsection
2,
paragraph
“b”
,
subparagraph
(2)
or
(7),
with
a
29
permanent
service-connected
disability
rating
of
less
than
one
30
hundred
percent
but
equal
to
or
greater
than
ten
percent,
as
31
certified
by
the
United
States
department
of
veterans
affairs.
32
Sec.
2.
Section
425.15,
subsection
2,
paragraph
a,
Code
33
2023,
is
amended
to
read
as
follows:
34
a.
For
an
owner
described
in
subsection
1
,
paragraph
“a”
,
35
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“b”
,
or
“c”
,
or
subsection
1A,
the
credit
allowed
shall
be
1
continued
to
the
estate
of
an
owner
who
is
deceased
or
the
2
surviving
spouse
and
any
child,
as
defined
in
section
234.1
,
3
who
are
the
beneficiaries
of
a
deceased
owner,
so
long
as
the
4
surviving
spouse
remains
unmarried.
5
Sec.
3.
Section
425.15,
subsection
3,
Code
2023,
is
amended
6
to
read
as
follows:
7
3.
An
owner
or
a
beneficiary
of
an
owner
who
elects
to
8
secure
the
credit
provided
in
this
section
under
the
conditions
9
described
in
subsection
1
is
not
eligible
for
any
other
real
10
property
tax
exemption
provided
by
law
for
veterans
of
military
11
service.
12
Sec.
4.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
13
immediate
importance,
takes
effect
upon
enactment.
14
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
Act
applies
15
retroactively
to
homestead
credit
claims
filed
on
or
after
16
January
1,
2023,
for
credits
allowed
against
property
taxes
due
17
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
2024.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
Current
Code
section
425.15
provides
a
homestead
credit
22
to
the
owner
of
a
homestead
for
the
full
amount
of
property
23
tax
levied
if
the
owner
is
any
of
the
following:
(1)
a
24
veteran
of
any
of
the
military
forces
of
the
United
States
25
who
acquired
the
homestead
under
specified
federal
programs;
26
(2)
a
veteran
with
a
permanent
service-connected
disability
27
rating
of
100
percent
or
a
permanent
and
total
disability
28
rating
based
on
individual
unemployability
that
is
compensated
29
at
the
100
percent
disability
rate;
(3)
a
former
member
of
30
the
national
guard
of
any
state
who
meets
specified
service
31
requirements
with
a
permanent
service-connected
disability
32
rating
of
100
percent
or
a
permanent
and
total
disability
33
rating
based
on
individual
unemployability
that
is
compensated
34
at
the
100
percent
disability
rate;
or
(4)
an
individual
who
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is
a
surviving
spouse
or
a
child
and
who
is
receiving
federal
1
dependency
and
indemnity
compensation.
2
This
bill
creates
two
additional
categories
of
disabled
3
veterans
who
qualify
for
a
homestead
credit
under
Code
section
4
425.15
that
are
phased
in
over
a
period
of
years
based
on
the
5
individual’s
permanent
service-connected
disability
rating.
6
Under
the
bill,
if
the
owner
of
a
homestead
does
not
meet
the
7
criteria
under
current
law
for
a
disabled
veteran
homestead
8
tax
credit,
the
amount
of
the
credit
allowed
on
the
homestead
9
is
the
greater
of
the
amount
of
the
regular
homestead
credit
10
(an
amount
equal
to
the
actual
levy
on
the
first
$4,850
11
of
actual
value)
or
an
amount
equal
to
a
percentage
of
the
12
entire
amount
of
the
tax
levied
on
the
homestead
that
is
13
equivalent
to
the
owner’s
service-connected
disability
rating
14
percentage
if
the
owner
is
either
of
the
following:
(1)
a
15
veteran
with
a
permanent
service-connected
disability
rating
16
that
is
less
than
100
percent
but
equal
to
or
greater
than
17
the
percentage
applicable
to
the
specific
year
of
the
phase
18
in;
or
(2)
a
former
member
of
the
national
guard
of
any
state
19
who
meets
specified
service
requirements
with
a
permanent
20
service-connected
disability
rating
of
less
than
100
percent
21
but
equal
to
or
greater
than
the
percentage
applicable
to
the
22
specific
year
of
the
phase
in.
23
The
bill
takes
effect
upon
enactment
and
applies
24
retroactively
to
homestead
credit
claims
filed
on
or
after
25
January
1,
2023,
for
credits
allowed
against
property
taxes
due
26
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
2024.
27
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