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

HF 2341 creates a partial property tax exemption for residential properties sold by the U.S. Department of Housing and Urban Development (HUD) in areas declared major disaster zones by the president or state disaster emergencies by the governor. It applies specifically to properties sold to owners already receiving Iowa's homestead tax credit, providing a phased tax reduction over four years: 80% exemption in the first assessment year, 60% in the second, 40% in the third, and 20% in the fourth. The exemption expires after the fourth year, meaning homeowners pay full property tax starting in the fifth year. This bill directly affects HUD-sold homeowners in disaster-affected areas who qualify for the homestead tax credit.