S.F. 2026 Section 1. NEW SECTION . 425B.1 Homestead assessed value 1 adjustment —— purpose. 2 Persons who own their homesteads and who meet the 3 qualifications provided in this chapter are eligible for 4 an adjustment in the assessed value of their homesteads or 5 an adjustment of the amount of taxes levied against their 6 homestead, as provided in this chapter, to prevent an increase 7 in such values or an increase in the amount of taxes levied. 8 Sec. 2. NEW SECTION . 425B.2 Definitions. 9 As used in this chapter, unless the context otherwise 10 requires: 11 1. “Assessed value” means the actual value prior to any 12 adjustment pursuant to section 441.21, subsection 4. 13 2. “Base assessment year” means the assessment year 14 beginning in the base year. 15 3. “Base year” means the calendar year last ending before 16 the claim is filed. 17 4. “Claimant” means a person filing a claim for adjustment 18 under this chapter who has attained the age of sixty-five years 19 on or before December 31 of the base year and is domiciled in 20 this state at the time the claim is filed or at the time of the 21 person’s death in the case of a claim filed by the executor or 22 administrator of the claimant’s estate. 23 5. “Earned income” means the same as defined in section 32 24 of the Internal Revenue Code. 25 6. “Homestead” means the dwelling owned and actually used 26 as a home by the claimant during at least six months of the 27 base year and so much of the land surrounding it, including one 28 or more contiguous lots or tracts of land, as is reasonably 29 necessary for use of the dwelling as a home, and may consist 30 of a part of a multidwelling or multipurpose building and a 31 part of the land upon which it is built. It does not include 32 personal property except that a manufactured or mobile home 33 may be a homestead. Any dwelling or a part of a multidwelling 34 or multipurpose building which is exempt from taxation does 35 -1- LSB 5192XS (3) 85 md/sc 1/ 6

S.F. 2026 not qualify as a homestead under this chapter. A homestead 1 must be located in this state. When a person is confined in a 2 nursing home, extended-care facility, or hospital, the person 3 shall be considered as occupying or living in the person’s 4 homestead if the person is the owner of the homestead and the 5 person maintains the homestead and does not lease, rent, or 6 otherwise receive profits from other persons for the use of the 7 homestead. 8 7. “Owned” means owned by an owner as defined in section 9 425.11. 10 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 11 The right to file a claim for an assessed value adjustment 12 under this chapter may be exercised by the claimant or on 13 behalf of a claimant by the claimant’s legal guardian, spouse, 14 or attorney, or by the executor or administrator of the 15 claimant’s estate. If a claimant dies after having filed a 16 claim for adjustment, the amount of any adjustment shall be 17 made as if the claimant had not died. 18 Sec. 4. NEW SECTION . 425B.4 Claim for adjustment. 19 1. Subject to the limitations provided in this chapter, 20 a claimant may annually claim an adjustment of the assessed 21 value of the claimant’s homestead for the base assessment year. 22 The adjustment claim shall be filed with the county assessor 23 between January 1 and February 15 immediately following 24 the close of the base assessment year. However, in case of 25 sickness, absence, or other disability of the claimant, or 26 if in the judgment of the county assessor good cause exists, 27 the county assessor may extend the time for filing a claim for 28 adjustment through June 30 of the same calendar year. 29 2. The county assessor shall notify the department of 30 revenue by March 1 of the number of claimants receiving 31 adjustments under this chapter and the total amount of the 32 reduced assessed values for the base assessment year. 33 Sec. 5. NEW SECTION . 425B.5 Adjustment —— maximum tax 34 dollars levied. 35 -2- LSB 5192XS (3) 85 md/sc 2/ 6

S.F. 2026 1. If the earned income qualification specified in 1 subsection 2 is met, the assessed value of the claimant’s 2 homestead in the base assessment year shall be adjusted, but 3 not increased, to equal the assessed value, as such assessed 4 value may have been adjusted pursuant to this chapter, in 5 the assessment year preceding the base assessment year. If 6 the amount of property taxes levied against the adjusted 7 assessment exceeds the amount of property taxes levied against 8 the property in the fiscal year for which taxes were first 9 levied against an adjusted assessment under this chapter, the 10 treasurer shall subtract the difference from the amount due. 11 2. A claimant is eligible for an adjustment to the assessed 12 value of the claimant’s homestead if the claimant’s household 13 earned income is less than eight thousand dollars in the base 14 year. 15 Sec. 6. NEW SECTION . 425B.6 Administration. 16 The director of revenue shall make available suitable forms 17 for claiming an assessed value adjustment with instructions 18 for claimants. Each assessor and county treasurer shall make 19 available the forms and instructions. The claim shall be in a 20 form as the director may prescribe. 21 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 22 1. Every claimant shall give the department of revenue, in 23 support of the claim, reasonable proof of: 24 a. Age. 25 b. Changes of homestead. 26 c. Size and nature of the property claimed as the homestead. 27 d. Household earned income. 28 2. The director of revenue may require any additional proof 29 necessary to support a claim. 30 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 31 If on the audit of a claim for adjustment under this chapter, 32 the director of revenue determines the claim is not allowable, 33 the director shall notify the claimant of the denial and the 34 reasons for it. The director shall not deny a claim after 35 -3- LSB 5192XS (3) 85 md/sc 3/ 6

S.F. 2026 three years from October 31 of the year in which the claim was 1 filed. The director shall give notification to the county 2 assessor of the denial of the claim and the county assessor 3 shall instruct the county treasurer to proceed to collect the 4 tax that would have been levied on the applicable adjusted 5 assessed value in the same manner as other property taxes 6 due and payable are collected, if the property on which the 7 adjustment was granted is still owned by the claimant. 8 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 9 1. A claimant shall expressly waive any right to 10 confidentiality relating to all income tax information 11 obtainable through the department of revenue including all 12 information covered by sections 422.20 and 422.72. This waiver 13 shall apply to information available to the county assessor who 14 shall hold the information confidential except that it may be 15 used as evidence to disallow the assessed value adjustment. 16 2. The department of revenue may release information 17 pertaining to a person’s eligibility or claim for or receipt of 18 the assessed value adjustment to an employee of the department 19 of inspections and appeals in the employee’s official conduct 20 of an audit or investigation. 21 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 22 A person who makes a false affidavit for the purpose of 23 obtaining an adjustment in assessed value provided for in 24 this chapter or who knowingly receives the adjustment without 25 being legally entitled to it or makes claim for the adjustment 26 in more than one county in the state without being legally 27 entitled to it is guilty of a fraudulent practice. The claim 28 for adjustment shall be disallowed in full and property tax 29 shall be levied on the disallowed adjustment at the rate that 30 would have been levied but for the adjustment. The director of 31 revenue shall send a notice of disallowance of the claim. 32 Sec. 11. NEW SECTION . 425B.11 Notices. 33 Section 423.39, subsection 1, shall apply to all notices 34 under this chapter. 35 -4- LSB 5192XS (3) 85 md/sc 4/ 6

S.F. 2026 Sec. 12. NEW SECTION . 425B.12 Appeals. 1 Any person aggrieved by an act or decision of the director 2 of revenue or the department of revenue under this chapter 3 shall have the same rights of appeal and review as provided in 4 sections 421.1 and 423.38 and the rules of the department of 5 revenue. 6 Sec. 13. NEW SECTION . 425B.13 Disallowance of certain 7 claims. 8 A claim for adjustment shall be disallowed if the department 9 finds that the claimant or a person of the claimant’s household 10 received title to the homestead primarily for the purpose of 11 receiving benefits under this chapter. 12 Sec. 14. NEW SECTION . 425B.14 Rules. 13 The director of revenue shall adopt rules in accordance with 14 chapter 17A for the interpretation and proper administration 15 of this chapter, including rules to prevent and disallow 16 duplication of benefits and to prevent any unreasonable 17 hardship or advantage to any person. 18 Sec. 15. APPLICABILITY. This Act applies retroactively to 19 January 1, 2014, for assessment years beginning on or after 20 that date and to the filing of claims on or after January 1, 21 2015, for adjustments of assessed values. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill provides for an adjustment in the assessed value of 26 a homestead, as defined in the bill, if the owner is a person 27 who is 65 or older and who has household earned income of less 28 than $8,000 per year. If the qualifications established in the 29 bill are met, the assessed value of the homestead upon which 30 property taxes are levied in a fiscal year is the same assessed 31 value as for the previous fiscal year. The bill specifies 32 that assessed value is that value prior to any rollback being 33 applied. 34 The bill further provides that if the amount of property 35 -5- LSB 5192XS (3) 85 md/sc 5/ 6

S.F. 2026 taxes levied against the adjusted assessment exceeds the amount 1 of property taxes levied against the property in the fiscal 2 year for which taxes were first levied against an adjusted 3 assessment under the bill, the county treasurer is required to 4 subtract such difference from the amount due. 5 The bill provides that a person who makes a false affidavit 6 for the purpose of obtaining an adjustment, knowingly receives 7 the adjustment without being legally entitled to it, or makes 8 claim for the adjustment in more than one county without being 9 legally entitled to it is guilty of a fraudulent practice and 10 is subject to a criminal penalty. 11 The bill applies retroactively to January 1, 2014, for 12 assessment years beginning on or after that date and applies to 13 claims filed on or after January 1, 2015, for the adjustments. 14 -6- LSB 5192XS (3) 85 md/sc 6/ 6