Iowa / State / 90th General Assembly, 2023 Regular Session

2023 Iowa Acts ch 71 (H.F. 718), §§ 51 to 53, 55, 56 Raised the military service property tax exemption to $4,000 of taxable value and ended the state reimbursement that paid for it

Catalog reconciledEnactedFigure movedProgram repealed

Signed 2023-05-04 · Takes effect 2024-07-01

Raised the military service tax exemption in Iowa Code section 426A.11, subsection 2 from $1,852 to $4,000 of taxable value for assessment years beginning on or after January 1, 2023, and left the World War I tier in subsection 1 applicable only to assessment years beginning before that date, with no replacement, making it a dead tier. At the same time it limited both section 426A.1A, the standing appropriation of "the amounts necessary to fund the credits provided under this chapter", and section 426A.2, the credit of up to $6.92 per thousand dollars of assessed value, to "each fiscal year beginning before July 1, 2024". The Iowa Department of Revenue states the consequence: "Starting in fiscal years beginning on or after July 1, 2024, this exemption is no longer funded by the state." The exemption itself is untouched and should still be claimed. Tracked because the chapter is still titled "Military service tax credit and exemptions" while the credit half no longer operates, because the revenue that used to be backfilled from the general fund now simply is not collected and the cost shifts onto the rest of the local tax base, and because the $4,000 is subtracted from taxable value after the assessment limitation rather than from a tax bill, so the annual saving is $4,000 times the local consolidated levy rather than $4,000.