Bill > HSB231

Introduced Session

Current Code section 425.15 provides a homestead credit to the owner of a homestead for the full amount of property tax levied if the owner is any of the following: (1) a veteran of any of the military forces of the United States who acquired the homestead under specified federal programs; (2) a veteran with a permanent service-connected disability H.F. _____ rating of 100 percent or a permanent and total disability rating based on individual unemployability that is compensated at the 100 percent disability rate; (3) a former member of the national guard of any state who meets specified service requirements with a permanent service-connected disability rating of 100 percent or a permanent and total disability rating based on individual unemployability that is compensated at the 100 percent disability rate; or (4) an individual who is a surviving spouse or a child and who is receiving federal dependency and indemnity compensation. This bill creates two additional categories of disabled veterans who qualify for a homestead credit under Code section 425.15 that are phased in over a period of years based on the individual’s permanent service-connected disability rating. Under the bill, if the owner of a homestead does not meet the criteria under current law for a disabled veteran homestead tax credit, the amount of the credit allowed on the homestead is the greater of the amount of the regular homestead credit (an amount equal to the actual levy on the first $4,850 of actual value) or an amount equal to a percentage of the entire amount of the tax levied on the homestead that is equivalent to the owner’s service-connected disability rating percentage if the owner is either of the following: (1) a veteran with a permanent service-connected disability rating that is less than 100 percent but equal to or greater than the percentage applicable to the specific year of the phase in; or (2) a former member of the national guard of any state who meets specified service requirements with a permanent service-connected disability rating of less than 100 percent but equal to or greater than the percentage applicable to the specific year of the phase in. The bill modifies the appropriation to the homestead credit fund in Code section 425.1 by limiting the amount of the credit to be paid by the state to each county treasurer for claimants of the disabled veteran tax credit and specifies that Code H.F. _____ section 25B.7(1), which requires the state to fund the cost of providing new property tax credits, shall not apply to the amount of the credit in excess of the amount paid by the state. The bill takes effect upon enactment and applies retroactively to homestead credit claims filed on or after January 1, 2025, for credits allowed against property taxes due and payable in fiscal years beginning on or after July 1, 2026.

Committee Categories

No sponsors listed

Other Sponsors (1)

Subcommittee recommends passage. (on 03/18/2025)

Official Document