SF 2026 (LSB 5192XS (3) 85)

SENATE FILE 2026

BY  TAYLOR

A BILL FOR

An Act providing a property assessment adjustment for certain property of persons who have attained the age of sixty-five, applying income limitations, providing a penalty, and including retroactive and other applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  425B.1  Homestead assessed value adjustment —— purpose.  

   Persons who own their homesteads and who meet the qualifications provided in this chapter are eligible for an adjustment in the assessed value of their homesteads or an adjustment of the amount of taxes levied against their homestead, as provided in this chapter, to prevent an increase in such values or an increase in the amount of taxes levied.
    Sec. 2.  NEW SECTION.  425B.2  Definitions.  

   As used in this chapter, unless the context otherwise requires:

   1.  “Assessed value” means the actual value prior to any adjustment pursuant to section 441.21, subsection 4.
   2.  “Base assessment year” means the assessment year beginning in the base year.
   3.  “Base year” means the calendar year last ending before the claim is filed.
   4.  “Claimant” means a person filing a claim for adjustment under this chapter who has attained the age of sixty-five years on or before December 31 of the base year and is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate.
   5.  “Earned income” means the same as defined in section 32 of the Internal Revenue Code.
   6.  “Homestead” means the dwelling owned and actually used as a home by the claimant during at least six months of the base year and so much of the land surrounding it, including one or more contiguous lots or tracts of land, as is reasonably necessary for use of the dwelling as a home, and may consist of a part of a multidwelling or multipurpose building and a part of the land upon which it is built. It does not include personal property except that a manufactured or mobile home may be a homestead. Any dwelling or a part of a multidwelling or multipurpose building which is exempt from taxation does not qualify as a homestead under this chapter. A homestead must be located in this state. When a person is confined in a nursing home, extended-care facility, or hospital, the person shall be considered as occupying or living in the person’s homestead if the person is the owner of the homestead and the person maintains the homestead and does not lease, rent, or otherwise receive profits from other persons for the use of the homestead.
   7.  “Owned” means owned by an owner as defined in section 425.11.
    Sec. 3.  NEW SECTION.  425B.3  Right to file a claim.  

   The right to file a claim for an assessed value adjustment under this chapter may be exercised by the claimant or on behalf of a claimant by the claimant’s legal guardian, spouse, or attorney, or by the executor or administrator of the claimant’s estate. If a claimant dies after having filed a claim for adjustment, the amount of any adjustment shall be made as if the claimant had not died.
    Sec. 4.  NEW SECTION.  425B.4  Claim for adjustment.  
   1.  Subject to the limitations provided in this chapter, a claimant may annually claim an adjustment of the assessed value of the claimant’s homestead for the base assessment year. The adjustment claim shall be filed with the county assessor between January 1 and February 15 immediately following the close of the base assessment year. However, in case of sickness, absence, or other disability of the claimant, or if in the judgment of the county assessor good cause exists, the county assessor may extend the time for filing a claim for adjustment through June 30 of the same calendar year.
   2.  The county assessor shall notify the department of revenue by March 1 of the number of claimants receiving adjustments under this chapter and the total amount of the reduced assessed values for the base assessment year.
    Sec. 5.  NEW SECTION.  425B.5  Adjustment —— maximum tax dollars levied.  
   1.  If the earned income qualification specified in subsection 2 is met, the assessed value of the claimant’s homestead in the base assessment year shall be adjusted, but not increased, to equal the assessed value, as such assessed value may have been adjusted pursuant to this chapter, in the assessment year preceding the base assessment year. If the amount of property taxes levied against the adjusted assessment exceeds the amount of property taxes levied against the property in the fiscal year for which taxes were first levied against an adjusted assessment under this chapter, the treasurer shall subtract the difference from the amount due.
   2.  A claimant is eligible for an adjustment to the assessed value of the claimant’s homestead if the claimant’s household earned income is less than eight thousand dollars in the base year.
    Sec. 6.  NEW SECTION.  425B.6  Administration.  

   The director of revenue shall make available suitable forms for claiming an assessed value adjustment with instructions for claimants. Each assessor and county treasurer shall make available the forms and instructions. The claim shall be in a form as the director may prescribe.
    Sec. 7.  NEW SECTION.  425B.7  Proof of claim.  
   1.  Every claimant shall give the department of revenue, in support of the claim, reasonable proof of:
   a.  Age.
   b.  Changes of homestead.
   c.  Size and nature of the property claimed as the homestead.
   d.  Household earned income.
   2.  The director of revenue may require any additional proof necessary to support a claim.
    Sec. 8.  NEW SECTION.  425B.8  Audit —— denial.  

   If on the audit of a claim for adjustment under this chapter, the director of revenue determines the claim is not allowable, the director shall notify the claimant of the denial and the reasons for it. The director shall not deny a claim after three years from October 31 of the year in which the claim was filed. The director shall give notification to the county assessor of the denial of the claim and the county assessor shall instruct the county treasurer to proceed to collect the tax that would have been levied on the applicable adjusted assessed value in the same manner as other property taxes due and payable are collected, if the property on which the adjustment was granted is still owned by the claimant.
    Sec. 9.  NEW SECTION.  425B.9  Waiver of confidentiality.  
   1.  A claimant shall expressly waive any right to confidentiality relating to all income tax information obtainable through the department of revenue including all information covered by sections 422.20 and 422.72. This waiver shall apply to information available to the county assessor who shall hold the information confidential except that it may be used as evidence to disallow the assessed value adjustment.
   2.  The department of revenue may release information pertaining to a person’s eligibility or claim for or receipt of the assessed value adjustment to an employee of the department of inspections and appeals in the employee’s official conduct of an audit or investigation.
    Sec. 10.  NEW SECTION.  425B.10  False claim —— penalty.  

   A person who makes a false affidavit for the purpose of obtaining an adjustment in assessed value provided for in this chapter or who knowingly receives the adjustment without being legally entitled to it or makes claim for the adjustment in more than one county in the state without being legally entitled to it is guilty of a fraudulent practice. The claim for adjustment shall be disallowed in full and property tax shall be levied on the disallowed adjustment at the rate that would have been levied but for the adjustment. The director of revenue shall send a notice of disallowance of the claim.
    Sec. 11.  NEW SECTION.  425B.11  Notices.

   Section 423.39, subsection 1, shall apply to all notices under this chapter.
    Sec. 12.  NEW SECTION.  425B.12  Appeals.

   Any person aggrieved by an act or decision of the director of revenue or the department of revenue under this chapter shall have the same rights of appeal and review as provided in sections 421.1 and 423.38 and the rules of the department of revenue.
    Sec. 13.  NEW SECTION.  425B.13  Disallowance of certain claims.

   A claim for adjustment shall be disallowed if the department finds that the claimant or a person of the claimant’s household received title to the homestead primarily for the purpose of receiving benefits under this chapter.
    Sec. 14.  NEW SECTION.  425B.14  Rules.

   The director of revenue shall adopt rules in accordance with chapter 17A for the interpretation and proper administration of this chapter, including rules to prevent and disallow duplication of benefits and to prevent any unreasonable hardship or advantage to any person.
    Sec. 15.  APPLICABILITY.  This Act applies retroactively to January 1, 2014, for assessment years beginning on or after that date and to the filing of claims on or after January 1, 2015, for adjustments of assessed values.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill provides for an adjustment in the assessed value of a homestead, as defined in the bill, if the owner is a person who is 65 or older and who has household earned income of less than $8,000 per year. If the qualifications established in the bill are met, the assessed value of the homestead upon which property taxes are levied in a fiscal year is the same assessed value as for the previous fiscal year. The bill specifies that assessed value is that value prior to any rollback being applied.
   The bill further provides that if the amount of property taxes levied against the adjusted assessment exceeds the amount of property taxes levied against the property in the fiscal year for which taxes were first levied against an adjusted assessment under the bill, the county treasurer is required to subtract such difference from the amount due.
   The bill provides that a person who makes a false affidavit for the purpose of obtaining an adjustment, knowingly receives the adjustment without being legally entitled to it, or makes claim for the adjustment in more than one county without being legally entitled to it is guilty of a fraudulent practice and is subject to a criminal penalty.
   The bill applies retroactively to January 1, 2014, for assessment years beginning on or after that date and applies to claims filed on or after January 1, 2015, for the adjustments.