Bill Text: IA SF284 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to the disabled veteran homestead tax credit by modifying eligibility criteria and including effective date and retroactive applicability provisions. (Formerly SF 45.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-02-25 - Withdrawn. S.J. 382. [SF284 Detail]

Download: Iowa-2015-SF284-Introduced.html

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Senate File 284 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO SF 45)

                                      A BILL FOR

  1 An Act relating to the disabled veteran homestead tax credit by
  2    modifying eligibility criteria and including effective date
  3    and retroactive applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 425.15, subsection 1, paragraphs b, c,
  1  2 and d, Code 2015, are amended to read as follows:
  1  3    b.  A veteran as defined in section 35.1 with a permanent
  1  4  service=connected disability rating of one hundred percent, as
  1  5 certified by the United States department of veterans affairs,
  1  6 or a permanent and total disability rating based on individual
  1  7 unemployability that is compensated at the one hundred percent
  1  8 disability rate, as certified by the United States department
  1  9 of veterans affairs.
  1 10    c.  A former member of the national guard of any state who
  1 11 otherwise meets the service requirements of section 35.1,
  1 12 subsection 2, paragraph "b", subparagraph (2) or (7), with a
  1 13 permanent service=connected disability rating of one hundred
  1 14 percent, as certified by the United States department of
  1 15 veterans affairs, or a permanent and total disability rating
  1 16 based on individual unemployability that is compensated at the
  1 17 one hundred percent disability rate, as certified by the United
  1 18 States department of veterans affairs.
  1 19    d.  An individual who is a surviving spouse or a child and
  1 20 who is receiving dependency and indemnity compensation pursuant
  1 21 to 38 U.S.C. {1301 et seq., as certified by the United States
  1 22 department of veterans affairs.
  1 23    Sec. 2.  Section 425.15, subsection 2, paragraph b, Code
  1 24 2015, is amended to read as follows:
  1 25    b.  An individual described in subsection 1, paragraph "d",
  1 26 is no longer eligible for the credit if the individual marries
  1 27 or upon termination of dependency and indemnity compensation
  1 28 under 38 U.S.C. {1301 et seq.
  1 29    Sec. 3.  Section 425.15, Code 2015, is amended by adding the
  1 30 following new subsection:
  1 31    NEW SUBSECTION.  5.  For purposes of this section, "permanent
  1 32 and total disability rating based on individual unemployability"
  1 33 means a condition under which a person has either a permanent
  1 34 service=connected disability rating of sixty percent or two or
  1 35 more permanent service=connected disability conditions in which
  2  1 one of the conditions has at least a forty percent rating and
  2  2 the combined rating for all the conditions is at least seventy
  2  3 percent, and the person has an administrative adjustment added
  2  4 to the service=connected disability rating, due to individual
  2  5 unemployability, such that the United States department of
  2  6 veterans affairs rates the veteran permanently and totally
  2  7 disabled for purposes of disability compensation.
  2  8    Sec. 4.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
  2  9 immediate importance, takes effect upon enactment.
  2 10    Sec. 5.  RETROACTIVE APPLICABILITY.  This Act applies
  2 11 retroactively to May 26, 2014, for applications for the
  2 12 homestead credit under chapter 425 filed on or after that date.
  2 13                           EXPLANATION
  2 14 The inclusion of this explanation does not constitute agreement with
  2 15 the explanation's substance by the members of the general assembly.
  2 16    Current Code section 425.15 provides a homestead credit to
  2 17 the owner of a homestead for the full amount of tax levied
  2 18 if the owner is any of the following: (1) a veteran of any
  2 19 of the military forces of the United States who acquired the
  2 20 homestead under specified federal programs; (2) a veteran
  2 21 with a service=connected disability rating of 100 percent;
  2 22 (3) a former member of the national guard of any state who
  2 23 meets specified service requirements with a service=connected
  2 24 disability rating of 100 percent; or (4) an individual who is a
  2 25 surviving spouse or a child and who is receiving dependency and
  2 26 indemnity compensation.
  2 27    This bill amends the eligibility criteria for the credit
  2 28 by requiring the service=connected disability rating of 100
  2 29 percent to be permanent. The bill also amends the eligibility
  2 30 criteria for the credit to include a veteran with a permanent
  2 31 and total disability rating based on individual unemployability
  2 32 that is compensated at the 100 percent disability rate and
  2 33 certain members of the national guard with a permanent and
  2 34 total disability rating based on individual unemployability
  2 35 that are compensated at the 100 percent disability rate.
  3  1 The bill defines "permanent and total disability rating
  3  2 based on individual unemployability" to mean a condition
  3  3 under which a person has either a permanent service=connected
  3  4 disability rating of 60 percent or two or more permanent
  3  5 service=connected disability conditions in which one of the
  3  6 conditions has at least a 40 percent rating and the combined
  3  7 rating for all the conditions is at least 70 percent, and
  3  8 the person has an administrative adjustment added to the
  3  9 service=connected disability rating, due to individual
  3 10 unemployability, such that the United States department of
  3 11 veterans affairs rates the veteran as permanently and totally
  3 12 disabled for purposes of disability compensation.
  3 13    The bill specifies that for purposes of qualifying for the
  3 14 credit, the receipt of dependency and indemnity compensation
  3 15 by an individual who is a surviving spouse or a child must be
  3 16 certified by the United States department of veterans affairs.
  3 17 The bill also removes the provision that terminates eligibility
  3 18 for the credit for a surviving spouse receiving dependency and
  3 19 indemnity compensation when the surviving spouse remarries.
  3 20    The bill takes effect upon enactment and applies
  3 21 retroactively to May 26, 2014, for applications for the
  3 22 homestead credit filed on or after that date.
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