Bill > SF2399

Introduced Session

This bill relates to persons who qualify for the military service tax exemption. Under current law, a person may qualify as a veteran if the person served in the Iowa national guard for a period of at least 20 years and who was discharged under honorable conditions, or the person was activated for federal duty, other than training, for a minimum aggregate of 90 days, and was discharged under honorable conditions or was retired under Tit. 10 of the United States Code. The bill changes the minimum aggregate a person must be activated for federal duty to 18 months. The bill includes in the definition of veteran residents of this state who are current members of the armed forces of the United States and have served in the armed forces of the United States on federal active duty, other than training, for a minimum aggregate of 18 months. The bill requires persons who qualify as veterans in this manner to submit a report created pursuant to the Servicemembers Civil Relief Act, showing the person’s status as a current member of the armed forces of the United States when required to verify the person’s status as a veteran. The bill adds members of the United States army, marines, navy, and space force as armed forces explicitly included within the meaning of “veteran” for the purposes of Code chapter 426A (military service tax credit and exemptions). The military service tax exemption (MSTE) is an exemption on property value up to a maximum of $4,000 for assessment years beginning on or after January 1, 2023. The MSTE is available to veterans of the United States air force, merchant marine, and coast guard, and also to Iowa residents who were honorably discharged from armed service after a minimum of 18 months of service and Iowa residents who were honorably discharged because of a service-related injury. The bill adds persons who are current members of the armed forces of the United States who have served a minimum aggregate of 18 months and current members of the reserve forces or Iowa national guard who have served a minimum aggregate of 10 years as persons who are eligible for the MSTE. The bill makes inapplicable Code section 25B.7. Code section 25B.7 provides that for a property tax credit or exemption enacted on or after January 1, 1997, if a state appropriation made to fund the credit or exemption is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation. The bill makes conforming changes to Code section 426A.13(1) and (2). The bill applies to assessment years beginning on or after January 1, 2025.

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Dawn Driscoll (R)*, 

Subcommittee: Dawson, Dotzler, and Koelker. S.J. 424. (on 02/29/2024)

Official Document