House File 2357 - Introduced HOUSE FILE 2357 BY HANUSA A BILL FOR An Act relating to filing for specified property tax credits 1 and including effective date and retroactive applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6096YH (3) 88 md/jh

H.F. 2357 Section 1. Section 425.2, subsection 1, Code 2020, is 1 amended to read as follows: 2 1. a. A person who wishes to qualify for the credit allowed 3 under this chapter shall obtain the appropriate forms for 4 filing for the credit from the assessor. The person claiming 5 the credit shall file a verified statement and designation 6 of homestead with the assessor for the year for which the 7 person is first claiming the credit. The Except as provided 8 in paragraph “b” , the claim shall be filed not later than July 9 1 of the year for which the person is claiming the credit. A 10 claim filed after July 1 or the date under paragraph “b” , if 11 applicable, of the year for which the person is claiming the 12 credit shall be considered as a claim filed for the following 13 year. 14 b. If the homestead is acquired by the person on or after 15 June 25 but before July 1 of the year for which the person 16 is first claiming the credit, the claim shall be filed not 17 later than seven days following the date of the real estate 18 closing and the person shall be considered to be occupying the 19 homestead beginning on the date of the real estate closing. 20 Sec. 2. Section 425.3, subsection 3, Code 2020, is amended 21 to read as follows: 22 3. Not later than July 6 15 of each year, the assessor 23 shall remit the statements and designation of homesteads to the 24 county auditor with the assessor’s recommendation for allowance 25 or disallowance. If the assessor recommends disallowance 26 of a claim, the assessor shall submit the reasons for the 27 recommendation, in writing, to the county auditor. 28 Sec. 3. Section 426A.13, subsection 2, Code 2020, is amended 29 to read as follows: 30 2. a. The person shall file with the appropriate assessor 31 on forms obtained from the assessor the claim for exemption for 32 the year for which the person is first claiming the exemption. 33 The Except as provided in paragraph “b” , the claim shall be 34 filed not later than July 1 of the year for which the person 35 -1- LSB 6096YH (3) 88 md/jh 1/ 3

H.F. 2357 is claiming the exemption. The claim shall set out the fact 1 that the person is a resident of and domiciled in the state 2 of Iowa, and a person within the terms of section 426A.11 , 3 and shall give the volume and page on which the certificate 4 of satisfactory service, order of separation, retirement, 5 furlough to reserve, inactive status, or honorable discharge or 6 certified copy thereof is recorded in the office of the county 7 recorder, and may include the designation of the property 8 from which the exemption is to be made, and shall further 9 state that the claimant is the equitable or legal owner of the 10 property designated or if the property is owned by a family 11 farm corporation, that the person is a shareholder of that 12 corporation and that the person occupies the property. In the 13 case of a person claiming the exemption as a veteran described 14 in section 35.1, subsection 2 , paragraph “b” , subparagraph (6) 15 or (7), the person shall file the statement required by section 16 35.2 . 17 b. If the property is acquired by the person on or after 18 June 25 but before July 1 of the year for which the person is 19 first claiming the exemption, the claim shall be filed not 20 later than seven days following the date of the real estate 21 closing and the person shall be considered to be occupying the 22 property beginning on the date of the real estate closing. 23 Sec. 4. Section 426A.14, subsection 3, Code 2020, is amended 24 to read as follows: 25 3. Not later than July 6 15 of each year, the assessor 26 shall remit the claims and designations of property to the 27 county auditor with the assessor’s recommendation for allowance 28 or disallowance. If the assessor recommends disallowance 29 of a claim, the assessor shall submit the reasons for the 30 recommendation, in writing, to the county auditor. 31 Sec. 5. Section 426C.3, subsection 2, paragraph a, 32 subparagraph (2), Code 2020, is amended to read as follows: 33 (2) Claims for the business property tax credit against 34 taxes due and payable in fiscal years beginning on or after 35 -2- LSB 6096YH (3) 88 md/jh 2/ 3

H.F. 2357 July 1, 2017, shall be filed not later than July 1 preceding 1 the fiscal year during which the taxes for which the credit 2 is claimed are due and payable. However, if the property is 3 acquired by the person on or after June 25 but before July 1 4 immediately preceding the July 1 filing deadline, the claim 5 shall be filed not later than seven days following the date of 6 acquisition. 7 Sec. 6. EFFECTIVE DATE. This Act, being deemed of immediate 8 importance, takes effect upon enactment. 9 Sec. 7. RETROACTIVE APPLICABILITY. This Act applies 10 retroactively to assessment years beginning on or after January 11 1, 2020. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 Code section 425.2 provides that a claim for the homestead 16 property tax credit shall be filed not later than July 1 of the 17 assessment year for which the person is claiming the credit. 18 A claim filed after July 1 of the year for which the person is 19 claiming the credit shall be considered as a claim filed for 20 the following year. This bill provides that if the homestead 21 is acquired by the person on or after June 25 but before July 1 22 of the assessment year for which the person is first claiming 23 the credit, the claim shall be filed not later than seven days 24 following the date of the real estate closing and the person 25 shall be considered to be occupying the property beginning on 26 the date of the real estate closing. 27 The bill makes corresponding changes to other deadlines 28 relating to the homestead credit and makes similar changes to 29 the application deadlines for the business property tax credit 30 under Code chapter 426C and the military service credit under 31 Code chapter 426A. 32 The bill takes effect upon enactment and applies 33 retroactively to assessment years beginning on or after January 34 1, 2020. 35 -3- LSB 6096YH (3) 88 md/jh 3/ 3