Bills › 90th General Assembly
Relating to the abatement of property taxes owed on property owned by certain volunteer emergency services providers and including effective date and retroactive applicability provisions
Topics:Cities & countiesPublic safety & emergenciesTaxesProperty taxes
Where it is now
- Done: IntroducedJanuary 24, 2023
- Done: SubcommitteeJanuary 31, 2023
- Done: Senate committeeMarch 22, 2023
- Skipped: Passes the SenateContinued as SF 555
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 555 → Its progress continues under the new number. Go to SF 555 What’s a funnel?
What’s in it
AI summary Volunteer emergency responders who have served for at least five years and earn less than $5,000 annually can ask their county for a property tax discount on their home. If approved, the county board of supervisors can reduce their property taxes and special assessments by up to $500 per year. This tax break can last for the rest of the volunteer's life as long as they continue to meet the requirements.1
Read the official explanation
14(2), whose homestead is located in the local service area for which the provider is a volunteer and who has been a volunteer emergency services provider for five or more years, earns less than $5,000 per year for service as a volunteer emergency services provider, and is in good standing with the provider’s volunteer agency or entity, to file a petition with the county board of supervisors, requesting abatement of property taxes and special assessments assessed on the individual’s homestead and giving other information as the board may require. The petition filed with the board of supervisors shall specify the type of abatement sought under the bill. Following receipt of the petition, the board of supervisors shall forward a copy of the petition to the governing body of each taxing authority not excluded under the bill that levies taxes or special assessments on the homestead. If the board of supervisors approves the abatement, the abatement shall apply to all applicable taxes and special assessments on the homestead, excluding those for which an objection by the governing body taxing authority was filed with the board of supervisors within days of the board providing a copy of the petition. The board of supervisors may order the abatement of the taxes and special assessments that are assessed against the petitioner’s homestead for the assessment year during which the petition is filed and, if specified by the board, the taxes and special assessments for one or more future years, subject to the petitioner continuing to meet the qualifications of the bill. The approved abatement shall not exceed the following: (1) for a volunteer emergency services provider that has not been a volunteer for at least years, an abatement of percent of all applicable taxes and special assessments imposed on the homestead, not to exceed $500; and (2) for a volunteer emergency service provider who has been a volunteer emergency service provider for or more years, an abatement of percent of all applicable taxes and special assessments imposed on the homestead, not to exceed $500, during the remainder of the volunteer emergency service provider’s life so long as the provider’s homestead is in the local service area of the agency or entity for which the provider was a volunteer. The bill also specifies the method of apportioning the abatement among each applicable levy and special assessment. The bill takes effect upon enactment and applies retroactively to assessment years beginning on or after January 1, 2023.
Senate subcommittee
Named March 14, 2023. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill provides a property tax abatement to certain volunteer emergency services providers who own a homestead. The abatement is projected to reduce property taxes owed by taxpayers and collected by local governments by $1.2 million in fiscal year 2026. These reductions are expected to increase by approximately $100,000 per year due to annual property value increases and retirements.3
Read the fiscal note
Description
Senate File 2424 creates a property tax abatement for owners of homesteads who meet minimum requirements as volunteer emergency services providers. The annual abatement is limited to the lesser of 10.0% of the property taxes due or $500. Property taxes levied by a local school or community college are excluded from the abatement, as well as any property taxes levied by a taxing authority that does not approve the abatement application for its portion of the consolidated property tax bill.
To receive the abatement, an emergency services provider must meet all the following criteria:
- Owns a homestead within the local service area of the provider’s emergency services entity.
- Earns less than $5,000 per year as a volunteer for the applicable emergency services entity.
- Has volunteered for five or more years with the emergency services entity.
- Is in good standing with the emergency services entity.
- Files a petition with the County Board of Supervisors requesting the abatement. If a homestead owner has been a qualified volunteer for 10 or more years, the property tax abatement is allowed for the remainder of the volunteer’s life.
The abatement also applies to special assessments owed on the property. The abatement is first available for property taxes due during FY 2026.
Assumptions
The following assumptions were used in the development of the fiscal impact projection:
- The average assessed residential property value for assessment year (AY) 2021 was $168,000. That amount is assumed to increase each year by the average annual Iowa residential revaluation percentage from AY 2016 through AY 2022 (3.7%).
- The AY 2024 residential rollback is 43.3428%. This rollback is assumed for all years.
- The FY 2024 statewide average property tax rate, excluding school and community college levies, for residential property is $18.19. This rate is assumed for all years.
- Based on the previous assumptions, a 10.0% abatement will reduce a qualified volunteer homestead owner’s FY 2026 property taxes by $160.
- Based on the number of claimants for the Volunteer Fire Fighter and Emergency Medical Service Personnel Tax Credit, the Department of Revenue estimates that there are 12,305 qualified volunteer emergency services providers currently operating in Iowa who could qualify for this abatement if they own a homestead. Based on U.S. Census Bureau statistics on Iowa home ownership, the Department estimates that 71.6% of the 12,305 own homes.
- The impact of the lifetime abatement provision is not known. For this estimate, the number of volunteer emergency services providers who qualify for the abatement is increased 2.5% each year to adjust for retirements of personnel who have 10 or more years of qualified volunteer service.
- Not all who qualify will apply for the abatement, and not all local government entities will approve abatements. This estimate is reduced by 15.0% to account for these situations.
- The Bill creates a property tax abatement, not a credit or exemption, so Iowa Code section 25B.7 (State funding of property tax credits and exemptions) does not apply.
Fiscal Impact
The property tax abatement created in the Bill to benefit qualified volunteer emergency services providers is projected to reduce property taxes owed by taxpayers and property taxes collected by local governments by $1.2 million in FY 2026. Due to retirements and annual property value increases, the projected reductions are expected to increase by approximately $100,000 per year.
Sources
- Department of Revenue
- U.S. Census Bureau
- Legislative Services Agency
- Volunteer First Responder, Property Tax Reduction · April 8, 2024 · $100,000
- Volunteer First Responder, Property Tax Reduction · March 24, 2023
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Tried before
90th General Assembly
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Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- SF 2375 Relating to the abatement of property taxes owed on property owned by certain volunteer em…89th General Assembly · Approved by committee · same titleCleared committee
Similar bills this General Assembly
- SF 635 Relating to the abatement of property taxes owed on property owned by certain volunteer em…91st General Assembly · Passed SenateVery similar
Matched by wording or an identical title.