House File 2213
HOUSE FILE
BY WHITAKER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the eligibility for the homestead credit of
2 the owner of a dwelling located on land owned by another
3 person or entity and including an effective date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 5569HH 80
6 mg/gg/14
PAG LIN
1 1 Section 1. Section 425.11, subsection 4, Code 2003, is
1 2 amended to read as follows:
1 3 4. The word "owner" shall mean the person who holds the
1 4 fee simple title to the homestead, and in addition shall mean
1 5 the person occupying as a surviving spouse or the person
1 6 occupying under a contract of purchase which contract has been
1 7 recorded in the office of the county recorder of the county in
1 8 which the property is located, or the person occupying the
1 9 homestead under devise or by operation of the inheritance laws
1 10 where the whole interest passes or where the divided interest
1 11 is shared only by persons related or formerly related to each
1 12 other by blood, marriage, or adoption, or the person occupying
1 13 the homestead is a shareholder of a family farm corporation
1 14 that owns the property, or the person occupying the homestead
1 15 under a deed which conveys a divided interest where the
1 16 divided interest is shared only by persons related or formerly
1 17 related to each other by blood, marriage, or adoption or where
1 18 the person occupying the homestead holds a life estate with
1 19 the reversion interest held by a nonprofit corporation
1 20 organized under chapter 504A, provided that the holder of the
1 21 life estate is liable for and pays property tax on the
1 22 homestead or where the person occupying the homestead holds an
1 23 interest in a horizontal property regime under chapter 499B,
1 24 regardless of whether the underlying land committed to the
1 25 horizontal property regime is in fee or as a leasehold
1 26 interest, provided that the holder of the interest in the
1 27 horizontal property regime is liable for and pays property tax
1 28 on the homestead. "Owner" also includes a person who holds
1 29 the fee simple title to the homestead dwelling or occupies the
1 30 homestead dwelling under a contract of purchase which is
1 31 recorded in the county where the dwelling is located and the
1 32 homestead dwelling is located upon land owned by another
1 33 person or entity and leased to the occupier if the term of the
1 34 lease is for at least five years and the occupier is liable
1 35 for and pays property tax on the homestead dwelling. For the
2 1 purpose of this chapter the word "owner" shall be construed to
2 2 mean a bona fide owner and not one for the purpose only of
2 3 availing the person of the benefits of this chapter. In order
2 4 to qualify for the homestead tax credit, evidence of ownership
2 5 shall be on file in the office of the clerk of the district
2 6 court or recorded in the office of the county recorder at the
2 7 time the owner files with the assessor a verified statement of
2 8 the homestead claimed by the owner as provided in section
2 9 425.2.
2 10 Where not in conflict with the terms of the definitions
2 11 above set out, the provisions of chapter 561 shall control.
2 12 Sec. 2. EFFECTIVE DATE. This Act, being deemed of
2 13 immediate importance, takes effect upon enactment.
2 14 EXPLANATION
2 15 Under present law a person owning a homestead dwelling
2 16 located upon land owned by another person is not eligible for
2 17 the homestead tax credit. This bill makes such an individual
2 18 eligible if the land is leased to the occupier of the
2 19 homestead dwelling, the term of the lease is at least five
2 20 years, and the occupier is liable for and pays property tax on
2 21 the homestead dwelling.
2 22 The bill takes effect upon enactment.
2 23 LSB 5569HH 80
2 24 mg/gg/14