HF 2601 (LSB 6096HV (1) 88)

HOUSE FILE 2601

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 2357)

A BILL FOR

An Act relating to filing for specified property tax credits and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 425.2, subsection 1, Code 2020, is amended to read as follows:
   1.  a.  A person who wishes to qualify for the credit allowed under this chapter shall obtain the appropriate forms for filing for the credit from the assessor. The person claiming the credit shall file a verified statement and designation of homestead with the assessor for the year for which the person is first claiming the credit. The Except as provided in paragraph “b”, the claim shall be filed not later than July 1 of the year for which the person is claiming the credit. A claim filed after July 1 or the date under paragraph “b”, if applicable, of the year for which the person is claiming the credit shall be considered as a claim filed for the following year.
   b.  If the homestead is acquired by the person on or after June 25 but before July 1 of the year for which the person is first claiming the credit, the claim shall be filed not later than seven days following the date of the real estate closing and the person shall be considered to be occupying the homestead beginning on the date of the real estate closing. 
    Sec. 2.  Section 425.3, subsection 3, Code 2020, is amended to read as follows:
   3.  Not later than July 6 15 of each year, the assessor shall remit the statements and designation of homesteads to the county auditor with the assessor’s recommendation for allowance or disallowance. If the assessor recommends disallowance of a claim, the assessor shall submit the reasons for the recommendation, in writing, to the county auditor.
    Sec. 3.  Section 426A.13, subsection 2, Code 2020, is amended to read as follows:
   2.  a.  The person shall file with the appropriate assessor on forms obtained from the assessor the claim for exemption for the year for which the person is first claiming the exemption. The Except as provided in paragraph “b”, the claim shall be filed not later than July 1 of the year for which the person is claiming the exemption. The claim shall set out the fact that the person is a resident of and domiciled in the state of Iowa, and a person within the terms of section 426A.11, and shall give the volume and page on which the certificate of satisfactory service, order of separation, retirement, furlough to reserve, inactive status, or honorable discharge or certified copy thereof is recorded in the office of the county recorder, and may include the designation of the property from which the exemption is to be made, and shall further state that the claimant is the equitable or legal owner of the property designated or if the property is owned by a family farm corporation, that the person is a shareholder of that corporation and that the person occupies the property. In the case of a person claiming the exemption as a veteran described in section 35.1, subsection 2, paragraph “b”, subparagraph (6) or (7), the person shall file the statement required by section 35.2.
   b.  If the property is acquired by the person on or after June 25 but before July 1 of the year for which the person is first claiming the exemption, the claim shall be filed not later than seven days following the date of the real estate closing and the person shall be considered to be occupying the property beginning on the date of the real estate closing.
    Sec. 4.  Section 426A.14, subsection 3, Code 2020, is amended to read as follows:
   3.  Not later than July 6 15 of each year, the assessor shall remit the claims and designations of property to the county auditor with the assessor’s recommendation for allowance or disallowance. If the assessor recommends disallowance of a claim, the assessor shall submit the reasons for the recommendation, in writing, to the county auditor.
    Sec. 5.  Section 426C.3, subsection 2, paragraph a, subparagraph (2), Code 2020, is amended to read as follows:
   (2)  Claims for the business property tax credit against taxes due and payable in fiscal years beginning on or after July 1, 2017, shall be filed not later than July 1 preceding the fiscal year during which the taxes for which the credit is claimed are due and payable.  However, if the property is acquired by the person on or after June 25 but before July 1 immediately preceding the July 1 filing deadline, the claim shall be filed not later than seven days following the date of acquisition.
    Sec. 6.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 7.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to assessment years beginning on or after January 1, 2020.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Code section 425.2 provides that a claim for the homestead property tax credit shall be filed not later than July 1 of the assessment year for which the person is claiming the credit. A claim filed after July 1 of the year for which the person is claiming the credit shall be considered as a claim filed for the following year. This bill provides that if the homestead is acquired by the person on or after June 25 but before July 1 of the assessment year for which the person is first claiming the credit, the claim shall be filed not later than seven days following the date of the real estate closing and the person shall be considered to be occupying the property beginning on the date of the real estate closing. 
   The bill makes corresponding changes to other deadlines relating to the homestead credit and makes similar changes to the application deadlines for the business property tax credit under Code chapter 426C and the military service credit under Code chapter 426A.
   The bill takes effect upon enactment and applies retroactively to assessment years beginning on or after January 1, 2020.