A bill for an act establishing a partial exemption on property taxes for certain residential properties sold in disaster areas.

This bill creates a temporary partial property tax exemption for residential properties sold by the U.S. Department of Housing and Urban Development (HUD) to eligible homeowners in areas affected by declared disasters. It directly affects HUD-sold homes purchased by residents receiving Iowa's homestead tax credit, located in areas where the president or governor declared a major disaster or emergency. The exemption provides a phased reduction in property taxes over four years: 80% in the first year, 60% in the second, 40% in the third, and 20% in the fourth, after which the full tax applies. This policy change applies only to properties sold specifically to provide housing following a disaster.