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Amendments

Amendment H-8397

Ruled not germane · April 22, 2026Strike everything: replaces the whole bill

Filed April 22, 2026 in the House by

What it changes

  1. By striking page 1, line 3, through page 54, line 4, and inserting: “
  2. By striking everything after the enacting clause and inserting: “DIVISION I ADDITIONAL HOMESTEAD PROPERTY TAX CREDIT Section
  3. Section 425.17, subsection 2, paragraph a, Code 2026, is amended by adding the following new subparagraph: NEW SUBPARAGRAPH . (4) A person filing a claim for credit under this subchapter who has attained the age of eighteen years on or before December 31 of the base year, is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate, and if the homestead’s actual value did not increase for the applicable assessment year as the result of new construction, improvements, or renovations to the property, beyond necessary repairs. Sec.
  4. Section 425.23, subsection 1, Code 2026, is amended by adding the following new paragraph: NEW PARAGRAPH . d. The tentative credit for a claimant described in section 425.17, subsection 2, paragraph “a” , subparagraph (4), shall be the difference between the actual amount of property taxes due on the homestead during the fiscal year next following the base year minus one hundred four percent of the actual amount of property taxes due on the homestead during the fiscal year immediately preceding such fiscal year, but not less than zero, if the property taxes due on the homestead for both such fiscal years were calculated on an assessed valuation that was not a partial assessment. Sec.
  5. IMPLEMENTATION OF ACT. Section 25B.7 shall not apply to this division of this Act. Sec.
  6. APPLICABILITY. This division of this Act applies -1- H 8394.4160 (2) 91 md/jh 1/ 9 to property taxes due and payable in fiscal years beginning on or after July 1,
  7. DIVISION II HOMESTEAD CREDIT AMOUNT Sec.
  8. Section 425.1, subsection 2, Code 2026, is amended to read as follows:
  9. The homestead credit fund shall be apportioned each year so as to give a credit against the tax on each eligible homestead in the state in an amount equal to the actual levy on the first four thousand eight hundred fifty fourteen thousand five hundred fifty dollars of actual value for each homestead. Sec.
  10. APPLICABILITY. This division of this Act applies to property taxes due and payable in fiscal years beginning on or after July 1,
  11. DIVISION III ELDERLY ADDITIONAL HOMESTEAD PROPERTY TAX CREDIT Sec.
  12. Section 25B.7, subsection 2, paragraph b, Code 2026, is amended to read as follows: b. Low-income property tax credit and elderly and disabled property tax credit pursuant to sections 425.16 through 425.40 , subject to the limitation of section 425.39, subsection 1 , paragraph “b” . Sec.
  13. Section 425.17, subsection 2, paragraph a, Code 2026, is amended to read as follows: a. “Claimant” means any of the following: (1) A person filing a claim for credit under this subchapter who has attained the age of sixty-five years but who has not attained the age of seventy years on or before December 31 of the base year, a person filing a claim for credit or reimbursement under this subchapter who is totally disabled and was totally disabled on or before December 31 of the base year, or a person filing a claim for reimbursement under this subchapter who has attained the age of sixty-five years on or before December 31 of the base year and who is domiciled in this state at the time the claim is filed or at the time of the -2- H 8394.4160 (2) 91 md/jh 2/ 9 person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate. (2) A person filing a claim for credit or reimbursement under this subchapter who has attained the age of twenty-three years on or before December 31 of the base year or was a head of household on December 31 of the base year, as defined in the Internal Revenue Code, but has not attained the age or disability status described in subparagraph (1) or the age status and eligibility criteria of subparagraph (3), and is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate, and was not claimed as a dependent on any other person’s tax return for the base year. (3) A person filing a claim for credit under this subchapter who has attained the age of seventy sixty-five years on or before December 31 of the base year , who has a household income of less than two hundred fifty percent of the federal poverty level, as defined by the most recently revised poverty income guidelines published by the United States department of health and human services, and is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate. Sec.
  14. Section 425.39, subsection 1, Code 2026, is amended to read as follows:
  15. a. The elderly and disabled property tax credit fund is created. There is appropriated annually from the general fund of the state to the department of revenue to be credited to the elderly and disabled property tax credit fund, from funds not otherwise appropriated, an amount sufficient to implement this subchapter for credits for property taxes due for claimants described in section 425.17, subsection 2 , paragraph “a” , subparagraphs subparagraph (1) and (3), subject to paragraph “b” . There is appropriated annually from the taxpayer relief -3- H 8394.4160 (2) 91 md/jh 3/ 9 fund under section 8.57E to the department of revenue to be credited to the elderly and disabled property tax credit fund, from funds not otherwise appropriated, an amount sufficient to implement this subchapter for credits for property taxes due for claimants described in section 425.17, subsection 2, paragraph “a” , subparagraph (3). b. Regardless of the amount of the credit determined under section 425.23, subsection 1 , paragraph “c” , the amount paid by the director of revenue to each county treasurer for credits for claimants described under section 425.17, subsection 2 , paragraph “a” , subparagraph (3), shall not exceed the amount calculated for the claimant under section 425.23, subsection 1 , paragraph “c” , subparagraph (1), and section 25B.7, subsection 1 , shall not apply to the amount of the credit in excess of the amount paid by the director of revenue. Sec.
  16. APPLICABILITY. The section of this division of this Act amending section 425.17 applies to claims under chapter 425, subchapter II, filed on or after January 1,
  17. DIVISION IV RESIDENTIAL PROPERTY TAX REBATE Sec.
  18. Section 8.57E, subsection 2, paragraph a, Code 2026, is amended to read as follows: a. Except as otherwise provided in this section , moneys in the taxpayer relief fund shall only be used pursuant to appropriations or transfers made by the general assembly for tax relief , or reductions in income tax rates , or rebates under section 425B.1 . Sec.
  19. NEW SECTION . 425B.1 Residential rebate —— fund —— appropriation.
  20. As used in this section, “eligibility period” means each fiscal year commencing with the fiscal year beginning July 1, 2026, but before the fiscal year beginning July 1,
  22. a. A residential rebate fund is created within the state treasury under the control of the department of revenue. For each fiscal year in the eligibility period, there is -4- H 8394.4160 (2) 91 md/jh 4/ 9 appropriated from the taxpayer relief fund under section 8.57E to the department of revenue to be credited to the residential rebate fund, an amount sufficient to implement this chapter for the applicable fiscal year. The department of revenue shall determine the annual appropriation amount. b. Moneys in fund are to be used during the eligibility period to provide residential rebate payments annually to qualified persons as described in this section.
  23. a. A person owning a homestead qualifies to claim a residential rebate in the amount of one thousand dollars for each fiscal year of the eligibility period the person claimed the homestead credit under chapter 425, in the previous fiscal year. Only one rebate may be claimed for a particular homestead per fiscal year. b. The department shall use homestead property tax credit records from county treasurers to identify and pay residential rebates to qualified owners under this subsection.
  24. a. A person renting a residence qualifies to claim a residential rebate in the amount of five hundred dollars if the residence is the person’s primary residence. Not more than two rebates may be claimed for a particular rented residence per fiscal year and not more than one rebate may be claimed per familial household per fiscal year. b. A person who wishes to qualify for the residential rebate allowed under this chapter as a renter shall obtain the appropriate forms for claiming the rebate from the department of revenue. The person claiming the rebate shall file a claim form, including a verified statement and designation of primary residence, with the department of revenue for the year for which the person is claiming the rebate. The claim shall be filed no later than September 1 following the fiscal year for which the person is claiming the rebate.
  25. By January 1 following each fiscal year during the eligibility period, the department of revenue shall make the authorized rebate payments to persons who qualify for the -5- H 8394.4160 (2) 91 md/jh 5/ 9 rebate under this chapter. DIVISION V RETIREMENT SYSTEMS Sec.
  26. Section 97A.1, subsection 10, Code 2026, is amended to read as follows:
  27. “Earnable compensation” or “compensation earnable” shall mean the regular compensation which a member would earn during one year on the basis of the stated compensation for the member’s rank or position including compensation for longevity , any amount received for overtime compensation, and the daily amount received for meals under section 80.6 , and excluding any amount received for overtime compensation or other special additional compensation, other payments for meal expenses, uniform cleaning allowances, travel expenses, and uniform allowances and excluding any amount received upon termination or retirement in payment for accumulated sick leave or vacation. Sec.
  28. Section 97B.11, subsection 1, Code 2026, is amended to read as follows:
  29. a. Each employer shall deduct from the wages of each member of the retirement system a contribution in the amount of the applicable employee percentage of the covered wages paid by the employer and such additional amount if otherwise required by law, until the member’s termination from employment. The contributions of the employer shall be in the amount of the applicable employer percentage of the covered wages of the member and such additional amount if otherwise required by law. b. Beginning July 1, 2026, the contributions of the employer related to a member that is in special service in a protection occupation as described in section 97B.49C for a county or as a county sheriff or deputy sheriff as described in section 97B.49C, shall be paid by the treasurer of state from the general fund of the state. For the fiscal year beginning July 1, 2026, and for each fiscal year thereafter, there is appropriated from the general fund of the state to -6- H 8394.4160 (2) 91 md/jh 6/ 9 the treasurer of state an amount necessary to carry out the provision of this paragraph. Sec.
  30. Section 411.1, subsection 10, Code 2026, is amended to read as follows:
  31. “Earnable compensation” or “compensation earnable” shall mean the annual compensation which a member receives for services rendered as a police officer or fire fighter in the course of employment with a participating city and shall include any amount received as overtime compensation . However, the term “earnable compensation” or “compensation earnable” shall not include amounts received for overtime compensation, meal or travel expenses, uniform allowances, fringe benefits, severance pay, or any amount received upon termination or retirement in payment for accumulated sick leave or vacation. Contributions made by a member from the member’s earnable compensation to a plan of deferred compensation shall be included in earnable compensation. Other contributions made to a plan of deferred compensation shall not be included except to the extent provided in rules adopted by the board of trustees pursuant to section 411.5, subsection 3 . Sec.
  32. Section 411.8, subsection 1, paragraphs a, b, c, and d, Code 2026, are amended to read as follows: a. On account of each member there shall be paid annually into the fund by the participating cities or, on or after July 1, 2026, by the treasurer of state an amount equal to a certain percentage of the earnable compensation of the member to be known as the “normal contribution”. The rate percent of such contribution shall be fixed on the basis of the liabilities of the retirement system as shown by annual actuarial valuations. Beginning July 1, 2026, that portion of the normal contribution otherwise required to be paid by a participating city into the fund shall be paid by the treasurer of state from the general fund of the state. For the fiscal year beginning July 1, 2026, and for each fiscal year thereafter, there is appropriated from the general fund of the state to the treasurer of state an -7- H 8394.4160 (2) 91 md/jh 7/ 9 amount necessary to carry out the provision of this paragraph “a” . b. (1) On the basis of the actuarial methods and assumptions, rate of interest, and of the mortality, interest and other tables adopted by the system, the actuary engaged by the system to make each valuation required by this chapter pursuant to the requirements of section 411.5 , shall immediately after making such valuation, determine the normal contribution rate. Except as otherwise provided in this lettered paragraph, the “normal contribution rate” shall be the rate percent of the earnable compensation of all members equal to the rate required by the system to discharge its liabilities, stated as a percentage of the earnable compensation of all members, and reduced by the employee contribution rate provided in paragraph “f” of this subsection and the contribution rate representing any state appropriation made . However, the normal contribution rate shall not be less than seventeen percent. (2) The normal contribution rate shall be determined by the actuary after each valuation. c. The total amount payable in each year to the fund shall be not less than the rate percent known as the normal contribution rate of the total compensation earnable by all members during the year, but the aggregate payment by the participating cities or treasurer of state, as applicable, must be sufficient when combined with the amount in the fund to provide the pensions and other benefits payable out of the fund during the then current year. d. All lump-sum death benefits on account of death in active service payable from contributions of the said participating cities or the treasurer of state, as applicable, shall be paid from the fund.
  33. Title page, by striking lines 1 through 5 and inserting “An Act relating to local and state government finances by modifying provisions relating to homestead property -8- H 8394.4160 (2) 91 md/jh 8/ 9 tax credits, providing a residential property tax rebate, modifying provisions relating to retirement systems, making appropriations, and including applicability provisions.””

Official amendment (PDF) · In the Bill Book