Bill Text: IA SF2399 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to persons who qualify for the military service tax exemption, and including applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2024-02-29 - Subcommittee: Dawson, Dotzler, and Koelker. S.J. 424. [SF2399 Detail]
Download: Iowa-2023-SF2399-Introduced.html
Senate
File
2399
-
Introduced
SENATE
FILE
2399
BY
DRISCOLL
A
BILL
FOR
An
Act
relating
to
persons
who
qualify
for
the
military
service
1
tax
exemption,
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
35.1,
subsection
2,
paragraph
b,
1
subparagraph
(2),
Code
2024,
is
amended
to
read
as
follows:
2
(2)
Former
members
of
the
Iowa
national
guard
who
served
3
at
least
twenty
years
in
the
Iowa
national
guard
and
who
were
4
discharged
under
honorable
conditions.
However,
a
member
of
5
the
Iowa
national
guard
who
was
activated
for
federal
duty,
6
other
than
training,
for
a
minimum
aggregate
of
ninety
days
7
eighteen
months
,
and
was
discharged
under
honorable
conditions
8
or
was
retired
under
Tit.
10
of
the
United
States
Code
shall
be
9
included
as
a
veteran.
10
Sec.
2.
Section
35.1,
subsection
2,
Code
2024,
is
amended
by
11
adding
the
following
new
paragraph:
12
NEW
PARAGRAPH
.
d.
A
resident
of
this
state
who
is
a
current
13
member
of
the
armed
forces
of
the
United
states
and
has
served
14
in
the
armed
forces
of
the
United
States
on
federal
active
15
duty,
other
than
training,
for
a
minimum
aggregate
of
eighteen
16
months.
17
Sec.
3.
Section
35.2,
Code
2024,
is
amended
to
read
as
18
follows:
19
35.2
Proof
of
veteran
status
for
certain
veterans.
20
1.
In
order
to
fulfill
any
eligibility
requirements
under
21
Iowa
law
pertaining
to
veteran
status,
a
veteran
described
in
22
section
35.1,
subsection
2
,
paragraph
“b”
,
subparagraph
(6)
or
23
(7),
shall
submit
the
veteran’s
retirement
points
accounting
24
statement
issued
by
the
armed
forces
of
the
United
States,
the
25
state
adjutant
general,
or
the
adjutant
general
of
any
other
26
state,
to
confirm
that
the
person
has
completed
twenty
years
of
27
service
with
the
reserve
forces
or
the
national
guard.
28
2.
In
order
to
fulfill
any
eligibility
requirements
under
29
Iowa
law
pertaining
to
veteran
status,
a
veteran
described
in
30
section
35.1,
subsection
2,
paragraph
“d”
,
shall
submit
a
report
31
created
pursuant
to
the
federal
Servicemembers
Civil
Relief
32
Act,
50
U.S.C.
App.
§3901
et
seq.,
showing
the
person’s
status
33
as
a
current
member
of
the
armed
forces
of
the
United
States.
34
Sec.
4.
Section
426A.11,
subsections
3
and
4,
Code
2024,
are
35
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amended
to
read
as
follows:
1
3.
Where
the
word
“veteran”
appears
in
this
chapter
,
it
2
includes
without
limitation
the
members
of
the
United
States
3
air
force,
army,
marines,
merchant
marine,
navy,
space
force,
4
and
coast
guard.
5
4.
For
purposes
of
this
chapter
,
unless
the
context
6
otherwise
requires,
“veteran”
also
means
a
resident
of
this
7
state
who
is
a
described
by
any
of
the
following:
8
a.
A
former
member
of
the
armed
forces
of
the
United
States
9
and
who
served
for
a
minimum
aggregate
of
eighteen
months
10
and
who
was
discharged
under
honorable
conditions.
However,
11
“veteran”
also
means
a
resident
of
this
state
who
is
a
12
b.
A
former
member
of
the
armed
forces
of
the
United
13
States
and
who,
after
serving
fewer
than
eighteen
months,
14
was
honorably
discharged
because
of
a
service-related
injury
15
sustained
by
the
veteran.
16
c.
A
current
member
of
the
armed
forces
of
the
United
States
17
who
has
served
a
minimum
aggregate
of
eighteen
months.
18
d.
A
current
member
of
a
reserve
force
of
the
United
States
19
or
the
Iowa
national
guard
who
was
activated
for
federal
duty,
20
other
than
training,
for
a
minimum
aggregate
of
eighteen
21
months.
22
Sec.
5.
Section
426A.13,
subsections
1
and
2,
Code
2024,
are
23
amended
to
read
as
follows:
24
1.
A
person
named
in
section
426A.11
,
who
is
a
resident
of
25
and
domiciled
in
the
state
of
Iowa,
shall
receive
a
reduction
26
equal
to
the
exemption,
to
be
made
from
any
property
owned
27
by
the
person
or
owned
by
a
family
farm
corporation
of
which
28
the
person
is
a
shareholder
and
occupant
of
the
property
and
29
so
designated
by
proceeding
as
provided
in
this
section
.
To
30
be
eligible
to
receive
the
exemption,
the
person
claiming
it
31
shall
have
recorded
in
the
office
of
the
county
recorder
of
32
the
county
in
which
is
located
the
property
designated
for
the
33
exemption,
evidence
of
property
ownership
by
that
person
or
the
34
family
farm
corporation
of
which
the
person
is
a
shareholder
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and
the
military
certificate
of
satisfactory
service,
order
1
transferring
to
inactive
status,
reserve,
retirement,
order
of
2
separation
from
service,
honorable
discharge
or
a
copy
of
any
3
of
these
documents
of
the
person
claiming
or
through
whom
is
4
claimed
the
exemption.
In
the
case
of
a
person
claiming
the
5
exemption
as
a
veteran
described
in
section
35.1,
subsection
2
,
6
paragraph
“b”
,
subparagraph
(6)
or
(7),
the
person
shall
file
7
the
statement
required
by
section
35.2
,
subsection
1
.
In
the
8
case
of
a
person
claiming
the
exemption
as
a
veteran
described
9
in
section
35.1,
subsection
2,
paragraph
“d”
,
the
person
shall
10
file
the
report
required
by
section
35.2,
subsection
2.
11
2.
The
person
shall
file
with
the
appropriate
assessor
on
12
forms
obtained
from
the
assessor
the
claim
for
exemption
for
13
the
year
for
which
the
person
is
first
claiming
the
exemption.
14
The
claim
shall
be
filed
not
later
than
July
1
of
the
year
15
for
which
the
person
is
claiming
the
exemption.
The
claim
16
shall
set
out
the
fact
that
the
person
is
a
resident
of
and
17
domiciled
in
the
state
of
Iowa,
and
a
person
within
the
terms
18
of
section
426A.11
,
and
shall
give
the
volume
and
page
on
which
19
the
certificate
of
satisfactory
service,
order
of
separation,
20
retirement,
furlough
to
reserve,
inactive
status,
or
honorable
21
discharge
or
certified
copy
thereof
is
recorded
in
the
office
22
of
the
county
recorder,
and
may
include
the
designation
of
the
23
property
from
which
the
exemption
is
to
be
made,
and
shall
24
further
state
that
the
claimant
is
the
equitable
or
legal
owner
25
of
the
property
designated
or
if
the
property
is
owned
by
a
26
family
farm
corporation,
that
the
person
is
a
shareholder
of
27
that
corporation
and
that
the
person
occupies
the
property.
28
In
the
case
of
a
person
claiming
the
exemption
as
a
veteran
29
described
in
section
35.1,
subsection
2
,
paragraph
“b”
,
30
subparagraph
(6)
or
(7),
the
person
shall
file
the
statement
31
required
by
section
35.2
,
subsection
1
.
In
the
case
of
a
32
person
claiming
the
exemption
as
a
veteran
described
in
section
33
35.1,
subsection
2,
paragraph
“d”
,
the
person
shall
file
the
34
report
required
by
section
35.2,
subsection
2.
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Sec.
6.
IMPLEMENTATION.
Section
25B.7
shall
not
apply
to
1
the
property
tax
exemption
enacted
in
this
Act.
2
Sec.
7.
APPLICABILITY.
This
Act
applies
to
assessment
years
3
beginning
on
or
after
January
1,
2025.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
relates
to
persons
who
qualify
for
the
military
8
service
tax
exemption.
9
Under
current
law,
a
person
may
qualify
as
a
veteran
if
10
the
person
served
in
the
Iowa
national
guard
for
a
period
11
of
at
least
20
years
and
who
was
discharged
under
honorable
12
conditions,
or
the
person
was
activated
for
federal
duty,
other
13
than
training,
for
a
minimum
aggregate
of
90
days,
and
was
14
discharged
under
honorable
conditions
or
was
retired
under
Tit.
15
10
of
the
United
States
Code.
The
bill
changes
the
minimum
16
aggregate
a
person
must
be
activated
for
federal
duty
to
18
17
months.
18
The
bill
includes
in
the
definition
of
veteran
residents
of
19
this
state
who
are
current
members
of
the
armed
forces
of
the
20
United
States
and
have
served
in
the
armed
forces
of
the
United
21
States
on
federal
active
duty,
other
than
training,
for
a
22
minimum
aggregate
of
18
months.
The
bill
requires
persons
who
23
qualify
as
veterans
in
this
manner
to
submit
a
report
created
24
pursuant
to
the
Servicemembers
Civil
Relief
Act,
showing
the
25
person’s
status
as
a
current
member
of
the
armed
forces
of
the
26
United
States
when
required
to
verify
the
person’s
status
as
27
a
veteran.
28
The
bill
adds
members
of
the
United
States
army,
marines,
29
navy,
and
space
force
as
armed
forces
explicitly
included
30
within
the
meaning
of
“veteran”
for
the
purposes
of
Code
31
chapter
426A
(military
service
tax
credit
and
exemptions).
32
The
military
service
tax
exemption
(MSTE)
is
an
exemption
on
33
property
value
up
to
a
maximum
of
$4,000
for
assessment
years
34
beginning
on
or
after
January
1,
2023.
The
MSTE
is
available
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to
veterans
of
the
United
States
air
force,
merchant
marine,
1
and
coast
guard,
and
also
to
Iowa
residents
who
were
honorably
2
discharged
from
armed
service
after
a
minimum
of
18
months
3
of
service
and
Iowa
residents
who
were
honorably
discharged
4
because
of
a
service-related
injury.
5
The
bill
adds
persons
who
are
current
members
of
the
armed
6
forces
of
the
United
States
who
have
served
a
minimum
aggregate
7
of
18
months
and
current
members
of
the
reserve
forces
or
Iowa
8
national
guard
who
have
served
a
minimum
aggregate
of
10
years
9
as
persons
who
are
eligible
for
the
MSTE.
10
The
bill
makes
inapplicable
Code
section
25B.7.
Code
11
section
25B.7
provides
that
for
a
property
tax
credit
or
12
exemption
enacted
on
or
after
January
1,
1997,
if
a
state
13
appropriation
made
to
fund
the
credit
or
exemption
is
not
14
sufficient
to
fully
fund
the
credit
or
exemption,
the
political
15
subdivision
shall
be
required
to
extend
to
the
taxpayer
only
16
that
portion
of
the
credit
or
exemption
estimated
by
the
17
department
of
revenue
to
be
funded
by
the
state
appropriation.
18
The
bill
makes
conforming
changes
to
Code
section
426A.13(1)
19
and
(2).
20
The
bill
applies
to
assessment
years
beginning
on
or
after
21
January
1,
2025.
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