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Bill > HF2341


IA HF2341

IA HF2341
A bill for an act establishing a partial exemption on property taxes for certain residential properties sold in disaster areas.


summary

Introduced
02/06/2026
In Committee
02/06/2026
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

A residential property sold by the United States department of housing and urban development (HUD) to an owner who is receiving the homestead tax credit on the residential property shall be partially exempt from taxation if the sale was to provide housing to individuals following a major disaster or disaster emergency and the residential property was located in the major disaster or disaster emergency area. The exemption is for a four-year period beginning with the first full assessment year after the sale. This bill provides an 80 percent exemption on the actual value in the first assessment year, a 60 percent in the second year, a 40 percent in the third year, a 20 percent in the fourth year, and the exemption expires in the fifth year.

AI Summary

This bill establishes a partial property tax exemption for certain residential properties sold by the United States Department of Housing and Urban Development (HUD) in areas affected by major disasters or disaster emergencies. To qualify, the buyer must be receiving the homestead tax credit, which is a credit on property taxes for homeowners who live in their homes. The exemption applies if the sale was intended to provide housing after a disaster and the property was located within the declared disaster area. The exemption is phased out over four years, starting with an 80% exemption in the first full assessment year after the sale, then decreasing to 60%, 40%, and finally 20% in the subsequent years, expiring in the fifth year.

Committee Categories

Budget and Finance

Sponsors (11)

Last Action

Introduced, referred to Ways and Means. H.J. 228. (on 02/06/2026)

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