Bills › 91st General Assembly
Establishing a partial exemption on property taxes for certain residential properties sold in disaster areas
Sponsored by Rep. Sean Bagniewski (D), Rep. Taylor R. Collins (R), Rep. Tom Determann (R), Rep. Daniel Gosa (D), Rep. Thomas M. Jeneary (R), Rep. Craig P. Johnson (R), Rep. Megan Jones (R), Rep. Elinor A. Levin (D), Rep. Norlin G. Mommsen (R), Rep. Thomas Jay Moore (R), Rep. Jeff Shipley (R), Rep. David Sieck (R), Rep. Brent Siegrist (R), Rep. Mark I. Thompson (R), Rep. Mike Vondran (R), Rep. Sam Wengryn (R)
Topics:Housing & propertyTaxesProperty taxes
Same legislation: HF 1013
Where it is now
- Done: IntroducedFebruary 24, 2025
- Done: SubcommitteeMarch 18, 2025
- Done: House committeeApril 9, 2025
- Skipped: Passes the HouseContinued as HF 1013
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 1013 → Its progress continues under the new number. Go to HF 1013 What’s a funnel?
What’s in it
AI summary If a person buys a home from the federal government to help people find housing after a major disaster, they can get a tax break. This partial tax exemption lasts for four years and applies to people who already receive the homestead tax credit on that property. The amount of the tax discount changes each year before it ends.1
Read the official explanation
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 percent exemption on the actual value in the first assessment year, a percent in the second year, a percent in the third year, a percent in the fourth year, and the exemption expires in the fifth year.
House subcommittee
Named March 18, 2025. On March 25, 2025 it recommended passage.
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 partial property tax exemption for homeowners who must replace a home destroyed by a natural disaster with a property purchased through the U.S. Department of Housing and Urban Development. An average qualifying home would provide a savings of $6,532 to the homeowner over four years, which would result in a proportional decrease in revenue for local governments. Because the number of eligible homeowners is unknown, the total cost to local governments cannot be estimated.3
Read the fiscal note
Description
House File 1013 establishes a partial property tax exemption for a property owner whose homestead was destroyed or rendered uninhabitable due to a natural disaster. The partial exemption applies to the owner’s replacement property for four consecutive assessment years following the disaster. The property must be purchased through the United States Department of Housing and Urban Development. The partial exemption is equal to the percent of actual value starting on the first full assessment year following the sale and expires in the fifth year.
Background
According to the Federal Emergency Management Agency (FEMA), Iowa has received over 25 federal disaster declarations since 2000. However, no centralized State source exists that tracks the number of residential properties destroyed or requiring permanent relocation annually due to disasters.
Assumptions
- The average assessed value of a single-family home in Iowa is estimated at $208,000.
- Residential properties are estimated to increase in assessed value by 2.3% per year.
- The residential assessment limitation for assessment year 2024 is 47.4316%.
- The average consolidated property tax rate is $32.3467 per $1,000 of taxable value.
- The exemption applies to one property per qualifying event for a four-year period.
Fiscal Impact
The number of homeowners that may be eligible for this exemption is unknown. The estimated impact of a single-family home in Iowa is shown in Figure 1. This represents a savings to homeowners and a proportional decrease in revenues for local governments. An average home in Iowa that qualifies for this program would receive an average total benefit of $6,532 over four years.
Figure 1 — Example CalculationYear 1 Year 2 Year 3 Year 4 80.0% 60.0% 40.0% 20.0%1 80.0% 208,000$ 98,658$ 3,191$ 2,553$ 2 60.0% 212,846 100,956 3,266 1,959 3 40.0% 217,742 103,278 3,341 1,336 4 20.0% 222,750 105,654 3,418 684
Partial
Exemption
Current
Law Taxes
Homeowner
Savings
Year
Post
Assessed
Value
Taxable
Value
Sources
- Legislative Services Agency calculations
- Department of Revenue
- Flood Relief Replacement Housing, Property Taxes · April 17, 2025 · $6,532
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91st General Assembly
Similar bills
- HF 2341 Establishing a partial exemption on property taxes for certain residential properties sold…91st General Assembly · In committeeNearly identical
- HSB 271 Establishing a partial exemption on property taxes for certain residential properties sold…91st General Assembly · Subcommittee recommends passageNearly identical
Matched by wording or an identical title.