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Senate Study Bill 1067

SENATE FILE BY (PROPOSED COMMITTEE ON VETERANS AFFAIRS BILL BY CHAIRPERSON BEALL) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the military service property tax exemption 2 and credit and including an applicability date provision. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1271SC 83 5 md/mg:sc/5 PAG LIN 1 1 Section 1. Section 25B.7, subsection 2, paragraph c, Code 1 2 2009, is amended to read as follows: 1 3 c. Military service property tax credit and exemption 1 4 pursuant to chapter 426A, to the extent of six dollars and 1 5 ninety=two cents per thousand dollars of assessed value of the 1 6 exempt property. 1 7 Sec. 2. Section 426A.2, Code 2009, is amended to read as 1 8 follows: 1 9 426A.2 MILITARY SERVICE TAX CREDIT. 1 10 The moneys shall be apportioned each year so as to replace 1 11 all or a portion of the tax which would be due on property 1 12 eligible for military service tax exemption in the state, if 1 13 the property were subject to taxation, the amount of the 1 14 credit to be not more than six dollars and ninety=two cents 1 15 per thousand dollars of assessed value of property which would 1 16 be subject to the tax, except for the military service tax 1 17 exemption. 1 18 Sec. 3. Section 426A.11, subsections 1 and 2, Code 2009, 1 19 are amended to read as follows: 1 20 1. The property, not to exceed two thousand seven hundred 1 21 seventy=eight sixteen thousand three hundred dollars in 1 22 taxable value of any veteran, as defined in section 35.1, of 1 23 the First World War. 1 24 2. The property, not to exceed one thousand eight hundred 1 25 fifty=two sixteen thousand three hundred dollars in taxable 1 26 value of an honorably separated, retired, furloughed to a 1 27 reserve, placed on inactive status, or discharged veteran, as 1 28 defined in section 35.1. 1 29 Sec. 4. APPLICABILITY DATE. This Act applies to property 1 30 taxes due and payable in fiscal years beginning on or after 1 31 July 1, 2010. 1 32 EXPLANATION 1 33 Under current law, veterans of the First World War are 1 34 entitled to a property tax exemption of $2,778 and honorably 1 35 discharged veterans that serve during other specific time 2 1 periods are entitled to a property tax exemption of $1,852. 2 2 This bill increases the exemption amount for all eligible 2 3 veterans to $16,300. 2 4 Under current law, the state provides funding to local 2 5 governments for the military service property tax exemption 2 6 and credit up to $6.92 per $1,000 of assessed value of the 2 7 exempt property. The bill strikes this state funding 2 8 limitation and makes the property tax exemption and credit 2 9 funding requirements of Code section 25B.7 applicable to the 2 10 increased military service exemption and credit amounts. Code 2 11 section 25B.7 provides that if a state appropriation made to 2 12 fund the credit or exemption is not sufficient to fully fund 2 13 the credit or exemption, the political subdivision shall be 2 14 required to extend to the taxpayer only that portion of the 2 15 credit or exemption estimated by the department of revenue to 2 16 be funded by the state appropriation. 2 17 The bill applies to property taxes due and payable in 2 18 fiscal years beginning on or after July 1, 2010. 2 19 LSB 1271SC 83 2 20 md/mg:sc/5
Text: SSB1066            Text: SSB1068