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Senate
File
29
-
Introduced
SENATE
FILE
29
BY
McCLINTOCK
A
BILL
FOR
An
Act
relating
to
property
tax
exemptions
by
changing
the
1
homestead
tax
exemption
to
a
credit
for
owners
attaining
2
sixty-five
years
of
age
and
increasing
the
military
service
3
tax
exemption,
and
including
effective
date
and
retroactive
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
HOMESTEAD
TAX
CREDIT
FOR
ELDERLY
OWNERS
2
Section
1.
Section
425.1A,
subsection
1,
paragraph
b,
Code
3
2025,
is
amended
to
read
as
follows:
4
b.
For
the
assessment
year
beginning
January
1,
2024
,
and
5
each
succeeding
assessment
year,
the
eligible
homestead,
not
to
6
exceed
six
thousand
five
hundred
dollars
in
taxable
value.
7
Sec.
2.
Section
425.17,
subsection
2,
paragraph
a,
8
subparagraphs
(1)
and
(3),
Code
2025,
are
amended
to
read
as
9
follows:
10
(1)
A
person
filing
a
claim
for
credit
under
this
subchapter
11
who
has
attained
the
age
of
sixty-five
years
but
who
has
12
not
attained
the
age
of
seventy
years
on
or
before
December
13
31
of
the
base
year,
a
person
filing
a
claim
for
credit
or
14
reimbursement
under
this
subchapter
who
is
totally
disabled
15
and
was
totally
disabled
on
or
before
December
31
of
the
base
16
year,
or
a
person
filing
a
claim
for
reimbursement
under
this
17
subchapter
who
has
attained
the
age
of
sixty-five
years
on
or
18
before
December
31
of
the
base
year
and
who
is
domiciled
in
19
this
state
at
the
time
the
claim
is
filed
or
at
the
time
of
the
20
person’s
death
in
the
case
of
a
claim
filed
by
the
executor
or
21
administrator
of
the
claimant’s
estate.
22
(3)
A
person
filing
a
claim
for
credit
under
this
subchapter
23
who
has
attained
the
age
of
seventy
sixty-five
years
on
or
24
before
December
31
of
the
base
year
,
who
has
a
household
income
25
of
less
than
two
hundred
fifty
percent
of
the
federal
poverty
26
level,
as
defined
by
the
most
recently
revised
poverty
income
27
guidelines
published
by
the
United
States
department
of
health
28
and
human
services,
and
is
domiciled
in
this
state
at
the
time
29
the
claim
is
filed
or
at
the
time
of
the
person’s
death
in
the
30
case
of
a
claim
filed
by
the
executor
or
administrator
of
the
31
claimant’s
estate.
32
Sec.
3.
Section
425.23,
subsection
1,
paragraph
c,
33
subparagraph
(2),
Code
2025,
is
amended
to
read
as
follows:
34
(2)
The
If
the
claimant
has
attained
the
age
of
seventy
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years
on
or
before
December
31
of
the
base
year,
has
a
1
household
income
of
less
than
two
hundred
fifty
percent
of
the
2
federal
poverty
level,
as
defined
by
the
most
recently
revised
3
poverty
income
guidelines
published
by
the
United
States
4
department
of
health
and
human
services,
and
is
domiciled
in
5
this
state
at
the
time
the
claim
is
filed
or
at
the
time
of
the
6
person’s
death
in
the
case
of
a
claim
filed
by
the
executor
or
7
administrator
of
the
claimant’s
estate,
the
difference
between
8
the
actual
amount
of
property
taxes
due
on
the
homestead
during
9
the
fiscal
year
next
following
the
base
year
minus
the
actual
10
amount
of
property
taxes
due
on
the
homestead
during
the
first
11
fiscal
year
for
which
the
claimant
filed
a
claim
for
a
credit
12
calculated
under
this
paragraph
“c”
and
for
which
the
property
13
taxes
due
on
the
homestead
were
calculated
on
an
assessed
14
valuation
that
was
not
a
partial
assessment
and
if
the
claimant
15
has
filed
for
the
credit
calculated
under
this
paragraph
“c”
16
for
each
of
the
subsequent
fiscal
years
after
the
first
credit
17
claimed.
18
Sec.
4.
Section
425.23,
subsection
1,
paragraph
c,
Code
19
2025,
is
amended
by
adding
the
following
new
subparagraph:
20
NEW
SUBPARAGRAPH
.
(3)
Six
thousand
five
hundred
dollars.
21
Sec.
5.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
22
deemed
of
immediate
importance,
takes
effect
upon
enactment.
23
Sec.
6.
RETROACTIVE
APPLICABILITY.
This
division
of
this
24
Act
applies
retroactively
to
assessment
years
beginning
on
or
25
after
January
1,
2025.
26
DIVISION
II
27
MILITARY
SERVICE
TAX
EXEMPTION
28
Sec.
7.
Section
426A.11,
subsection
2,
paragraph
b,
Code
29
2025,
is
amended
to
read
as
follows:
30
b.
The
property,
not
to
exceed
four
thousand
dollars
in
31
taxable
value
for
the
assessment
years
beginning
on
or
after
32
January
1,
2023,
but
before
January
1,
2025,
of
an
honorably
33
separated,
retired,
furloughed
to
a
reserve,
placed
on
inactive
34
status,
or
discharged
veteran,
as
defined
in
section
35.1,
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subsection
2
,
paragraph
“a”
or
“b”
.
1
Sec.
8.
Section
426A.11,
subsection
2,
Code
2025,
is
amended
2
by
adding
the
following
new
paragraph:
3
NEW
PARAGRAPH
.
c.
For
assessment
years
beginning
on
or
4
after
January
1,
2025,
the
property
of
an
honorably
separated,
5
retired,
furloughed
to
a
reserve,
placed
on
inactive
status,
or
6
discharged
veteran,
as
defined
in
section
35.1,
subsection
2,
7
paragraph
“a”
or
“b”
,
equal
to
the
lesser
of
the
actual
value
8
of
the
property
and
an
amount
equal
to
four
thousand
dollars
9
divided
by
the
quotient
of
the
property’s
consolidated
levy
10
rate
per
one
thousand
dollars
divided
by
one
thousand
dollars.
11
Sec.
9.
IMPLEMENTATION.
Section
25B.7
does
not
apply
to
the
12
exemption
in
this
division
of
this
Act.
13
Sec.
10.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
14
deemed
of
immediate
importance,
takes
effect
upon
enactment.
15
Sec.
11.
RETROACTIVE
APPLICABILITY.
This
division
of
this
16
Act
applies
retroactively
to
assessment
years
beginning
on
or
17
after
January
1,
2025.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
property
tax
exemptions
by
changing
22
the
homestead
tax
exemption
for
certain
elderly
persons
to
a
23
credit
for
owners
attaining
65
years
of
age
and
increasing
the
24
military
service
tax
exemption.
25
DIVISION
I
——
HOMESTEAD
TAX
CREDIT
FOR
ELDERLY
OWNERS.
Under
26
Code
section
425.1A,
the
homestead
tax
exemption
for
owners
27
attaining
65
years
of
age
shall
not
exceed
$6,500
of
taxable
28
value.
Owners
attaining
the
age
of
65
and
70
years
of
age,
29
respectively,
are
also
eligible
for
an
additional
credit
if
30
the
owner
meets
certain
income
requirements
under
Code
section
31
423.23.
32
The
bill
changes
the
homestead
tax
exemption
for
owners
33
attaining
the
age
of
65
years
from
a
$6,500
exemption
to
a
34
credit
of
at
least
$6,500
on
the
actual
taxes
payable
on
an
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29
eligible
homestead.
1
The
bill
makes
conforming
changes
to
the
additional
credit
2
in
Code
chapter
425,
subchapter
II.
3
The
division
takes
effect
upon
enactment
and
applies
4
retroactively
to
assessment
years
beginning
on
or
after
January
5
1,
2025.
6
DIVISION
II
——
MILITARY
SERVICE
TAX
EXEMPTION.
Under
7
current
law,
all
honorably
discharged
veterans
are
entitled
to
8
a
property
tax
exemption
of
$4,000
in
taxable
value.
The
bill
9
increases
the
property
tax
exemption
amount
to
an
amount
that
10
is
equal
to
the
lesser
of
the
actual
value
of
the
property
and
11
an
exemption
amount
that
is
equivalent
to
a
$4,000
credit
on
12
the
actual
taxes
payable
on
a
property
owned
by
an
eligible
13
veteran.
14
Code
section
25B.7
does
not
apply
to
the
division,
and
as
15
a
result,
a
political
subdivision
is
required
to
extend
the
16
credit
to
eligible
veterans.
17
The
division
takes
effect
upon
enactment
and
applies
18
retroactively
to
assessment
years
beginning
on
or
after
January
19
1,
2025.
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