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
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