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SF 29

A bill for an act relating to property tax exemptions by changing the homestead tax exemption to a credit for owners attaining sixty-five years of age and increasing the military service tax exemption, and including effective date and retroactive applicability provisions.

2025-2026 Regular Session Introduced by Charlie McClintock

Bill SF 29 converts the homestead tax exemption for seniors into a credit and increases property tax exemptions for veterans, easing financial burdens for both groups.

Subcommittee: Rowley, Dawson, and Quirmbach.
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Bill Summary · SF 29

Summary of Bill SF 29

Title: A bill for an act relating to property tax exemptions by changing the homestead tax exemption to a credit for owners attaining sixty-five years of age and increasing the military service tax exemption, and including effective date and retroactive applicability provisions.

Introduced: January 14, 2025
Status: Subcommittee: Rowley, Dawson, and Quirmbach
Classification: Bill
Subject: Claims, credit, Federal Government, homesteads, military, property taxes, services taxes, tax credits, tax exemptions

Purpose and Intent

Bill SF 29 aims to modify existing property tax exemptions in two significant ways:

  1. Homestead Tax Exemption Change: The bill proposes to convert the current homestead tax exemption for property owners aged sixty-five and older into a tax credit.
  2. Increase in Military Service Tax Exemption: It seeks to enhance the property tax exemption for honorably discharged veterans.

Key Provisions

Homestead Tax Exemption

  • The bill changes the existing homestead tax exemption for individuals aged sixty-five and older to a credit.
  • This credit will be applied to property taxes, providing financial relief to senior homeowners.

Military Service Tax Exemption

  • The current property tax exemption for honorably discharged veterans is set at $4,000 of taxable value.
  • The bill increases this exemption to the lesser of:
    • The actual value of the property.
    • An exemption amount equivalent to a $4,000 credit on the actual taxes payable for properties owned by eligible veterans.
  • Political subdivisions are mandated to extend this credit to eligible veterans, as Code section 25B.7 does not apply to this division.

Effective Date and Applicability

  • Both provisions of the bill will take effect upon enactment.
  • The changes will apply retroactively to assessment years beginning on or after January 1, 2025.

Impact

  • Seniors: Homeowners aged sixty-five and older will benefit from a more direct tax credit, potentially easing their financial burden.
  • Veterans: Honorably discharged veterans will see an increase in their property tax exemption, providing additional financial support.
  • Local Governments: Political subdivisions will be required to implement these changes, which may affect local tax revenue and budgeting.

Legislative Actions

  • January 14, 2025: Bill introduced and referred to the Ways and Means Committee.
  • January 22, 2025: Assigned to a subcommittee consisting of Rowley, Dawson, and Quirmbach for further consideration.

This summary provides an overview of Bill SF 29, highlighting its purpose, key provisions, and potential impacts on affected groups.

Compiled from official sources — confirm details with the bill’s official record.

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