Bill Text: IA HF506 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to property taxes of veterans and members of the armed forces by modifying the military service property tax exemption and credit, providing an additional homestead credit for certain disabled veterans, making penalties applicable, and including applicability provisions. (Formerly HSB 98)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2013-12-31 - END OF 2013 ACTIONS [HF506 Detail]
Download: Iowa-2013-HF506-Introduced.html
House
File
506
-
Introduced
HOUSE
FILE
506
BY
COMMITTEE
ON
VETERANS
AFFAIRS
(SUCCESSOR
TO
HSB
98)
A
BILL
FOR
An
Act
relating
to
property
taxes
of
veterans
and
members
of
1
the
armed
forces
by
modifying
the
military
service
property
2
tax
exemption
and
credit,
providing
an
additional
homestead
3
credit
for
certain
disabled
veterans,
making
penalties
4
applicable,
and
including
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
425.15,
Code
2013,
is
amended
to
read
as
1
follows:
2
425.15
Disabled
veteran
tax
credit.
3
If
the
owner
of
a
homestead
allowed
a
credit
under
this
4
chapter
is
a
veteran
of
any
of
the
military
forces
of
the
5
United
States,
who
acquired
the
homestead
under
38
U.S.C.
6
§
21.801,
21.802,
prior
to
August
6,
1991,
or
38
U.S.C.
7
§
2101
,
through
2102,
who
is
a
veteran
as
defined
in
section
8
35.1
with
a
permanent
and
total
service-connected
disability
9
as
certified
by
the
United
States
department
of
veterans
10
affairs,
or
who
is
a
former
member
of
the
national
guard
11
of
any
state
who
meets
the
service
requirements
of
section
12
35.1,
subsection
2,
paragraph
“b”
,
subparagraph
(2)
or
(7),
13
with
a
permanent
and
total
service-connected
disability
as
14
certified
by
the
United
States
department
of
veterans
affairs,
15
the
credit
allowed
on
the
homestead
from
the
homestead
credit
16
fund
shall
be
the
entire
amount
of
the
tax
levied
on
the
17
homestead.
The
credit
allowed
shall
be
continued
to
the
18
estate
of
a
veteran
who
is
deceased
or
the
surviving
spouse
19
and
any
child,
as
defined
in
section
234.1
,
who
are
the
20
beneficiaries
of
a
deceased
veteran,
so
long
as
the
surviving
21
spouse
remains
unmarried.
This
section
is
not
applicable
to
22
the
holder
of
title
to
any
homestead
whose
annual
income,
23
together
with
that
of
the
titleholder’s
spouse,
if
any,
for
24
the
last
preceding
twelve-month
income
tax
accounting
period
25
exceeds
thirty-five
thousand
dollars.
For
the
purpose
of
26
this
section
“income”
means
taxable
income
for
federal
income
27
tax
purposes
plus
income
from
securities
of
state
and
other
28
political
subdivisions
exempt
from
federal
income
tax.
A
29
veteran
or
a
beneficiary
of
a
veteran
who
elects
to
secure
the
30
credit
provided
in
this
section
is
not
eligible
for
any
other
31
real
property
tax
exemption
provided
by
law
for
veterans
of
32
military
service.
If
a
veteran
acquires
a
different
homestead,
33
the
credit
allowed
under
this
section
may
be
claimed
on
the
34
new
homestead
unless
the
veteran
fails
to
meet
the
other
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requirements
of
this
section
.
1
Sec.
2.
NEW
SECTION
.
425.15A
Disabled
veteran
tax
2
limitation.
3
1.
For
purposes
of
this
section,
unless
the
context
4
otherwise
requires:
5
a.
“Base
year”
means
the
fiscal
year
immediately
preceding
6
the
first
fiscal
year
in
which
the
additional
homestead
7
credit
under
this
section
is
allowed
on
the
disabled
veteran’s
8
homestead.
9
b.
“Disabled
veteran”
means
a
veteran,
as
defined
in
section
10
35.1,
who
has
a
service-connected
disability
rating
of
at
least
11
fifty
percent
as
certified
by
the
United
States
department
of
12
veterans
affairs.
“Disabled
veteran”
also
means
a
former
member
13
of
the
national
guard
of
any
state
who
otherwise
meets
the
14
service
requirements
of
section
35.1,
subsection
2,
paragraph
15
“b”
,
subparagraph
(2)
or
(7),
who
has
a
service-connected
16
disability
rating
of
at
least
fifty
percent
as
certified
by
the
17
United
States
department
of
veterans
affairs.
18
2.
A
disabled
veteran
who
is
eligible
for
the
credit
allowed
19
under
section
425.1
may
claim
an
additional
homestead
credit
20
pursuant
to
this
section.
To
claim
the
credit
under
this
21
section,
the
disabled
veteran
shall
file
on
or
before
June
30
22
of
the
base
year
for
which
the
veteran
is
first
claiming
the
23
credit.
The
amount
of
the
credit
equals
the
amount
of
property
24
taxes,
less
the
regular
homestead
credit
allowed
under
section
25
425.1,
due
and
payable
in
the
coming
fiscal
year
that
exceeds
26
the
amount
of
property
taxes,
less
the
regular
homestead
credit
27
allowed
under
section
425.1,
that
were
due
and
payable
in
the
28
base
year.
The
credit
under
this
section
is
payable
from
the
29
homestead
credit
fund
created
in
section
425.1.
30
3.
Upon
the
filing
and
allowance
of
the
claim,
the
claim
31
shall
be
allowed
on
the
disabled
veteran’s
homestead
for
32
successive
years
without
further
filing
as
long
as
the
property
33
is
legally
and
equitably
owned
and
used
as
a
homestead
by
34
the
disabled
veteran
on
July
1
of
each
of
those
successive
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years.
The
credit
allowed
shall
be
continued
to
the
estate
1
of
a
veteran
who
is
deceased
or
the
surviving
spouse
and
any
2
child,
as
defined
in
section
234.1,
who
are
the
beneficiaries
3
of
a
deceased
veteran,
so
long
as
the
surviving
spouse
remains
4
unmarried.
5
Sec.
3.
Section
426A.11,
subsection
1,
Code
2013,
is
amended
6
by
striking
the
subsection.
7
Sec.
4.
Section
426A.11,
subsections
2
and
4,
Code
2013,
are
8
amended
to
read
as
follows:
9
2.
The
property,
not
to
exceed
one
thousand
eight
hundred
10
fifty-two
three
thousand
seven
hundred
five
dollars
in
taxable
11
value
of
an
honorably
separated,
retired,
furloughed
to
a
12
reserve,
placed
on
inactive
status,
or
discharged
veteran,
as
13
defined
in
section
35.1,
subsection
2
,
paragraph
“a”
or
“b”
or
14
subsections
3
and
4
of
this
section
.
15
4.
For
purposes
of
this
chapter
,
unless
the
context
16
otherwise
requires,
“veteran”
also
means
a
any
of
the
following:
17
a.
A
resident
of
this
state
who
is
a
former
member
of
the
18
armed
forces
of
the
United
States
and
who
served
for
a
minimum
19
aggregate
of
eighteen
months
and
who
was
discharged
under
20
honorable
conditions.
However,
“veteran”
also
means
a
21
b.
A
resident
of
this
state
who
is
a
former
member
of
the
22
armed
forces
of
the
United
States
and
who,
after
serving
fewer
23
than
eighteen
months,
was
honorably
discharged
because
of
a
24
service-related
injury
sustained
by
the
veteran.
25
c.
A
resident
of
this
state
who
is
a
current
member
of
the
26
national
guard,
organized
reserves,
or
regular
component
of
the
27
armed
forces
of
the
United
States.
28
d.
A
resident
of
this
state
who
is
a
former
member
of
the
29
national
guard
of
any
state
who
otherwise
meets
the
service
30
requirements
of
section
35.1,
subsection
2,
paragraph
“b”
,
31
subparagraph
(2)
or
(7).
32
Sec.
5.
Section
426A.12,
Code
2013,
is
amended
to
read
as
33
follows:
34
426A.12
Exemptions
to
relatives.
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1.
In
case
any
person
in
the
foregoing
classifications
does
1
not
claim
the
exemption
from
taxation
or
for
any
member
of
the
2
national
guard,
organized
reserves,
or
a
regular
component
of
3
the
armed
forces
of
the
United
States
whose
death
occurred
in
4
the
line
of
duty
,
it
shall
be
allowed
in
the
name
of
the
person
5
to
the
same
extent
on
the
property
of
any
one
of
the
following
6
persons
in
the
order
named:
7
a.
The
spouse,
or
surviving
spouse
remaining
unmarried,
8
of
a
veteran,
as
defined
in
this
chapter
or
in
section
35.1,
9
subsection
2
,
paragraph
“a”
or
“b”
,
or
of
a
person
whose
death
10
occurred
in
the
line
of
duty
where
they
are
living
together
or
11
were
living
together
at
the
time
of
the
death
of
the
veteran
or
12
person
.
13
b.
The
parent
whose
spouse
is
deceased
and
who
remains
14
unmarried,
of
a
veteran,
as
defined
in
this
chapter
or
in
15
section
35.1,
subsection
2
,
paragraph
“a”
or
“b”
,
or
of
a
person
16
whose
death
occurred
in
the
line
of
duty
whether
living
or
17
deceased,
where
the
parent
is,
or
was
at
the
time
of
death
of
18
the
veteran
or
person
,
dependent
on
the
veteran
or
person
for
19
support.
20
c.
The
minor
child,
or
children
owning
property
as
tenants
21
in
common,
of
a
deceased
veteran,
as
defined
in
this
chapter
22
or
in
section
35.1,
subsection
2
,
paragraph
“a”
or
“b”
or
of
a
23
person
whose
death
occurred
in
the
line
of
duty
.
24
2.
No
more
than
one
tax
exemption
shall
be
allowed
under
25
this
section
or
section
426A.11
in
the
name
of
a
veteran,
26
as
defined
in
this
chapter
or
in
section
35.1,
subsection
2
,
27
paragraph
“a”
or
“b”
or
of
a
person
whose
death
occurred
in
the
28
line
of
duty
.
29
Sec.
6.
Section
426A.13,
unnumbered
paragraphs
1
and
2,
Code
30
2013,
are
amended
to
read
as
follows:
31
A
person
named
in
section
426A.11
,
who
is
a
resident
of
32
and
domiciled
in
the
state
of
Iowa,
shall
receive
a
reduction
33
equal
to
the
exemption,
to
be
made
from
any
property
owned
34
by
the
person
or
owned
by
a
family
farm
corporation
of
which
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the
person
is
a
shareholder
and
occupant
of
the
property
and
1
so
designated
by
proceeding
as
provided
in
the
section.
To
2
be
eligible
to
receive
the
exemption,
the
person
claiming
it
3
shall
have
recorded
in
the
office
of
the
county
recorder
of
4
the
county
in
which
is
located
the
property
designated
for
the
5
exemption,
evidence
of
property
ownership
by
that
person
or
the
6
family
farm
corporation
of
which
the
person
is
a
shareholder
7
and
the
military
certificate
of
satisfactory
service,
order
8
transferring
to
inactive
status,
reserve,
retirement,
order
of
9
separation
from
service,
honorable
discharge
or
a
copy
of
any
10
of
these
documents
of
the
person
claiming
or
through
whom
is
11
claimed
the
exemption.
In
the
case
of
a
person
claiming
the
12
exemption
as
a
veteran
described
in
section
35.1,
subsection
13
2
,
paragraph
“b”
,
subparagraph
(6)
or
(7),
or
under
section
14
426A.11,
subsection
4,
paragraph
“d”
,
the
person
shall
file
the
15
statement
required
by
section
35.2
.
16
The
person
shall
file
with
the
appropriate
assessor
on
forms
17
obtained
from
the
assessor
the
claim
for
exemption
for
the
year
18
for
which
the
person
is
first
claiming
the
exemption.
The
19
claim
shall
be
filed
not
later
than
July
1
of
the
year
for
which
20
the
person
is
claiming
the
exemption.
The
claim
shall
set
out
21
the
fact
that
the
person
is
a
resident
of
and
domiciled
in
the
22
state
of
Iowa,
and
a
person
within
the
terms
of
section
426A.11
23
or
section
426A.12
,
and
shall
give
the
volume
and
page
on
which
24
the
certificate
of
satisfactory
service,
order
of
separation,
25
retirement,
furlough
to
reserve,
inactive
status,
or
honorable
26
discharge
or
certified
copy
thereof
is
recorded
in
the
office
27
of
the
county
recorder,
and
may
include
the
designation
of
the
28
property
from
which
the
exemption
is
to
be
made,
and
shall
29
further
state
that
the
claimant
is
the
equitable
or
legal
owner
30
of
the
property
designated
or
if
the
property
is
owned
by
a
31
family
farm
corporation,
that
the
person
is
a
shareholder
of
32
that
corporation
and
that
the
person
occupies
the
property.
33
In
the
case
of
a
person
claiming
the
exemption
as
a
veteran
34
described
in
section
35.1,
subsection
2
,
paragraph
“b”
,
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subparagraph
(6)
or
(7),
or
under
section
426A.11,
subsection
1
4,
paragraph
“d”
,
the
person
shall
file
the
statement
required
2
by
section
35.2
.
3
Sec.
7.
APPLICABILITY.
This
Act
applies
to
property
taxes
4
due
and
payable
in
fiscal
years
beginning
on
or
after
July
1,
5
2014.
6
EXPLANATION
7
This
bill
relates
to
property
taxes
of
veterans
and
members
8
of
the
armed
forces.
9
The
disabled
veterans
tax
credit
under
Code
section
425.15
10
provides
a
credit
on
the
homestead
of
an
eligible
veteran
11
who
acquired
the
homestead
under
specified
federal
programs
12
in
an
amount
equal
to
the
entire
amount
of
the
tax
levied
on
13
the
homestead.
This
bill
modifies
the
qualifications
for
the
14
disabled
veterans
tax
credit
by
adding
to
the
list
of
veterans
15
who
are
eligible
for
the
credit,
the
following:
(1)
a
veteran
16
as
defined
in
Code
section
35.1
with
a
permanent
and
total
17
service-connected
disability
as
certified
by
the
United
States
18
department
of
veterans
affairs;
and
(2)
a
former
member
of
the
19
national
guard
of
any
state
who
otherwise
meets
the
service
20
requirements
for
Iowa
national
guard
members
under
Code
section
21
35.1(2)(b),
subparagraph
(2)
or
(7),
with
a
permanent
and
total
22
service-connected
disability
as
certified
by
the
United
States
23
department
of
veterans
affairs.
The
bill
also
strikes
the
24
income
limitation
qualifications
for
the
disabled
veteran
tax
25
credit.
26
The
bill
enacts
new
Code
section
425.15A,
which
provides
27
that
the
property
tax
on
a
disabled
veteran’s
homestead
shall
28
not
increase
from
year
to
year.
To
receive
this
credit,
the
29
veteran
must
file
on
or
before
June
30
in
a
manner
similar
30
to
filing
for
the
regular
homestead
credit.
Once
the
claim
31
is
filed
and
allowed,
the
veteran
does
not
have
to
file
for
32
successive
years
so
long
as
the
property
is
still
owned
and
33
used
by
the
veteran
as
a
homestead.
34
The
bill
defines
“disabled
veteran”
for
the
purposes
of
new
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Code
section
425.15A
to
be
a
veteran
as
defined
in
Code
section
1
35.1,
and
specified
former
members
of
the
national
guard
of
2
any
state
who
have
a
service-connected
disability
rating
of
at
3
least
50
percent
as
certified
by
the
United
States
department
4
of
veterans
affairs.
5
Under
current
law,
veterans
of
the
First
World
War
are
6
entitled
to
a
property
tax
exemption
of
$2,778
in
taxable
value
7
and
honorably
discharged
veterans
who
served
during
other
8
specific
time
periods
are
entitled
to
a
property
tax
exemption
9
of
$1,852
in
taxable
value.
The
bill
removes
the
provision
10
relating
to
veterans
of
the
first
World
War
and
increases
the
11
exemption
amount
for
all
eligible
veterans
to
$3,705.
12
The
bill
also
modifies
the
qualifications
for
the
military
13
service
property
tax
exemption
and
credit
by
adding
to
the
list
14
of
veterans
who
are
eligible
for
the
credit,
the
following:
15
(1)
a
resident
of
this
state
who
is
a
current
member
of
the
16
national
guard,
organized
reserves,
or
regular
component
of
the
17
armed
forces
of
the
United
States;
(2)
a
resident
of
this
state
18
who
is
a
former
member
of
the
national
guard
of
any
state
who
19
otherwise
meets
the
service
requirements
for
members
of
the
20
Iowa
national
guard
under
Code
section
35.1(2)(b),
subparagraph
21
(2)
or
(7);
and
(3)
a
resident
of
this
state
who
served
on
22
federal
active
duty,
other
than
training,
in
the
armed
forces
23
of
the
United
States
and
who
was
discharged
under
honorable
24
conditions.
25
The
bill
also
amends
Code
section
426A.12
relating
to
the
26
ability
of
relatives
to
claim
the
exemption
and
credit
of
a
27
veteran
to
add
relatives
of
a
member
of
the
national
guard,
28
organized
reserves,
or
a
regular
component
of
the
armed
forces
29
of
the
United
States
whose
death
occurred
in
the
line
of
duty.
30
Under
current
law,
the
state
provides
funding
to
local
31
governments
for
the
military
service
property
tax
exemption
and
32
credit
up
to
$6.92
per
$1,000
of
assessed
value
of
the
exempt
33
property.
Code
section
25B.7
provides
that
for
a
property
tax
34
credit
or
exemption
enacted
on
or
after
January
1,
1997,
if
a
35
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85
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H.F.
506
state
appropriation
made
to
fund
the
credit
or
exemption
is
not
1
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
2
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
3
that
portion
of
the
credit
or
exemption
estimated
by
the
4
department
of
revenue
to
be
funded
by
the
state
appropriation.
5
The
provisions
of
Code
section
25B.7
apply
to
the
military
6
service
property
tax
credit
and
exemption
to
the
extent
of
7
$6.92
per
$1,000
of
assessed
value
of
the
exempt
property.
8
The
bill
applies
to
property
taxes
due
and
payable
in
fiscal
9
years
beginning
on
or
after
July
1,
2014.
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md/sc
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