Senate File 195
SENATE FILE
BY McCOY
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the filing and qualifying for a claim for
2 reimbursement for rent constituting property taxes paid and
3 including an applicability date provision.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 425.17, subsection 2, unnumbered
1 2 paragraph 2, Code 2003, is amended to read as follows:
1 3 "Claimant" under paragraph "a" or "b" includes a vendee in
1 4 possession under a contract for deed and may include one or
1 5 more joint tenants or tenants in common. In the case of a
1 6 claim for rent constituting property taxes paid, the claimant
1 7 shall have rented the property during any part of the base
1 8 year. In the case of a claim for property taxes due, the
1 9 claimant shall have occupied the property during any part of
1 10 the fiscal year beginning July 1 of the base year. If a
1 11 homestead is rented by a husband and wife either of whom
1 12 qualifies as a claimant, the spouse that qualifies may file a
1 13 claim based upon that spouse's income and rent constituting
1 14 property taxes paid. If a homestead is occupied by two or
1 15 more persons, and more than one person is able to qualify as a
1 16 claimant, the persons may each file a claim based upon each
1 17 person's income and rent constituting property taxes paid or
1 18 property taxes due.
1 19 Sec. 2. Section 425.17, subsections 5, 6, and 9, Code
1 20 2003, are amended to read as follows:
1 21 5. "Household" means:
1 22 a. In the case of a claim for credit, a claimant and the
1 23 claimant's spouse if living with the claimant at any time
1 24 during the base year. "Living with" refers to domicile and
1 25 does not include a temporary visit.
1 26 b. In the case of a claim for reimbursement, the claimant.
1 27 6. "Household income" means:
1 28 a. In the case of a claim for credit, all income of the
1 29 claimant and the claimant's spouse in a household and actual
1 30 monetary contributions received from any other person living
1 31 with the claimant during their respective twelve=month income
1 32 tax accounting periods ending with or during the base year.
1 33 b. In the case of a claim for reimbursement, all income of
1 34 the claimant and actual monetary contributions received from
1 35 any other person living with the claimant during their
2 1 respective twelve=month income tax accounting periods ending
2 2 with or during the base year.
2 3 9. "Rent constituting property taxes paid" means twenty=
2 4 three percent of the gross rent actually paid in cash or its
2 5 equivalent during the base year by the claimant or the
2 6 claimant's household solely for the right of occupancy of
2 7 their the claimant's homestead in the base year, and which
2 8 rent constitutes the basis, in the succeeding year, of a claim
2 9 for reimbursement under this division by the claimant. In the
2 10 case where the claimant's spouse lives with the claimant in
2 11 the homestead during the base year, the amount of gross rent
2 12 actually paid by each equals the percent that the household
2 13 income of each is to the total household income of both unless
2 14 otherwise established to the contrary. If the claimant's
2 15 spouse does not live with the claimant during the entire base
2 16 year, the gross rent and household income of each shall be
2 17 prorated under rules of the director of revenue and finance.
2 18 Sec. 3. APPLICABILITY DATE. This Act applies to claims
2 19 for reimbursement for rent constituting property taxes paid
2 20 which are filed on or after January 1, 2004.
2 21 EXPLANATION
2 22 Under present law, people 65 or older or disabled and with
2 23 incomes of less than a set amount may claim a reimbursement
2 24 for rent constituting property taxes paid. If two or more
2 25 persons occupying a single dwelling qualify for reimbursement,
2 26 each person may file a claim based upon each person's income
2 27 and rent paid. However, a husband and wife are generally
2 28 treated as one household and thus may file only one claim and
2 29 must combine their incomes to determine eligibility.
2 30 This bill provides that the homestead only includes the
2 31 claimant, i.e., husband or wife who qualifies, and specifies
2 32 that the qualifying spouse may file a claim based upon the
2 33 qualifying spouse's income and rent paid.
2 34 The bill applies to claims for reimbursement filed on or
2 35 after January 1, 2004.
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