House File 2553 - Introduced
HOUSE FILE
BY MAY
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to a property assessment adjustment for persons
2 age sixty=five and older and including retroactive
3 applicability date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. NEW SECTION. 424A.1 HOMESTEAD ASSESSED VALUE
1 2 ADJUSTMENT.
1 3 Persons who own their homesteads and who meet the
1 4 qualifications provided in this chapter are eligible for an
1 5 adjustment in the assessed value of their homesteads, as
1 6 provided in this chapter.
1 7 The assessment shall be adjusted by multiplying the
1 8 assessed value of the eligible homestead by ninety=eight
1 9 hundredths percent, and the assessed value as adjusted by this
1 10 section shall be the taxable value of such property upon which
1 11 the levy shall be made.
1 12 Sec. 2. NEW SECTION. 424A.2 DEFINITIONS.
1 13 As used in this chapter, unless the context otherwise
1 14 requires:
1 15 1. "Assessed value" means the actual value after any
1 16 adjustment pursuant to section 441.21, subsection 4.
1 17 2. "Claimant" means a person filing a claim for adjustment
1 18 under this chapter who has attained the age of sixty=five
1 19 years on or before December 31 of the assessment year for
1 20 which the claim may first be filed and is domiciled in this
1 21 state at the time the claim is filed or at the time of the
1 22 person's death in the case of a claim filed by the executor or
1 23 administrator of the claimant's estate.
1 24 3. "Homestead" means the dwelling owned and actually used
1 25 as a home by the claimant during any part of the fiscal year
1 26 beginning July 1, and so much of the land surrounding it
1 27 including one or more contiguous lots or tracts of land, as is
1 28 reasonably necessary for use of the dwelling as a home, and
1 29 may consist of a part of a multidwelling or multipurpose
1 30 building and a part of the land upon which it is built. It
1 31 does not include personal property except that a manufactured
1 32 or mobile home may be a homestead. Any dwelling or a part of
1 33 a multidwelling or multipurpose building which is exempt from
1 34 taxation does not qualify as a homestead under this chapter.
1 35 A homestead must be located in this state. When a person is
2 1 confined in a nursing home, extended=care facility, or
2 2 hospital, the person shall be considered as occupying or
2 3 living in the person's homestead if the person is the owner of
2 4 the homestead and the person maintains the homestead and does
2 5 not lease, rent, or otherwise receive profits from other
2 6 persons for the use of the homestead.
2 7 4. "Owned" means owned by an owner as defined in section
2 8 425.11.
2 9 Sec. 3. NEW SECTION. 424A.3 RIGHT TO FILE A CLAIM.
2 10 The right to file a claim for an assessed value adjustment
2 11 under this chapter may be exercised by the claimant or on
2 12 behalf of a claimant by the claimant's legal guardian, spouse,
2 13 or attorney, or by the executor or administrator of the
2 14 claimant's estate. If a claimant dies after having filed a
2 15 claim for adjustment, the amount of any adjustment shall be
2 16 made as if the claimant had not died.
2 17 Sec. 4. NEW SECTION. 424A.4 CLAIM FOR ADJUSTMENT.
2 18 A claim for adjustment shall be filed with the county
2 19 assessor between January 1 and February 15 immediately
2 20 following the close of the calendar year in which the claimant
2 21 attained the age of sixty=five. However, in case of sickness,
2 22 absence, or other disability of the claimant, or if in the
2 23 judgment of the county assessor good cause exists, the county
2 24 assessor may extend the time for filing a claim for adjustment
2 25 through June 30 of the same calendar year.
2 26 The county assessor shall notify the department of revenue
2 27 by March 1 of each year of the number of claimants receiving
2 28 adjustments under this chapter and the total amount of the
2 29 reduced assessed values for the assessment year.
2 30 Sec. 5. NEW SECTION. 424A.5 ADMINISTRATION.
2 31 The director of revenue shall make available suitable forms
2 32 for claiming an assessed value adjustment with instructions
2 33 for claimants. Each assessor and county treasurer shall make
2 34 available the forms and instructions. The claim shall be in a
2 35 form as the director may prescribe.
3 1 Sec. 6. NEW SECTION. 424A.6 PROOF OF CLAIM.
3 2 Every claimant shall give the department of revenue, in
3 3 support of the claim, reasonable proof of:
3 4 1. Age.
3 5 2. Changes of homestead.
3 6 3. Size and nature of the property claimed as the
3 7 homestead.
3 8 The director of revenue may require any additional proof
3 9 necessary to support a claim.
3 10 Sec. 7. NEW SECTION. 424A.7 AUDIT == DENIAL.
3 11 If on the audit of a claim for adjustment under this
3 12 chapter, the director of revenue determines the claim is not
3 13 allowable, the director shall notify the claimant of the
3 14 denial and the reasons for it. The director shall not deny a
3 15 claim after three years from October 31 of the year in which
3 16 the claim was filed. The director shall give notification to
3 17 the county assessor of the denial of the claim and the county
3 18 assessor shall instruct the county treasurer to proceed to
3 19 collect the tax that would have been levied on the disallowed
3 20 adjustment in the same manner as other property taxes due and
3 21 payable are collected, if the property on which the adjustment
3 22 was granted is still owned by the claimant.
3 23 Sec. 8. NEW SECTION. 424A.8 RELEASE OF CLAIMANT
3 24 INFORMATION.
3 25 The department of revenue may release information
3 26 pertaining to a person's eligibility or claim for or receipt
3 27 of the assessed value adjustment to an employee of the
3 28 department of inspections and appeals in the employee's
3 29 official conduct of an audit or investigation.
3 30 Sec. 9. NEW SECTION. 424A.9 FALSE CLAIM == PENALTY.
3 31 A person who makes a false affidavit for the purpose of
3 32 obtaining an adjustment in assessed value provided for in this
3 33 chapter or who knowingly receives the adjustment without being
3 34 legally entitled to it or makes claim for the adjustment in
3 35 more than one county in the state without being legally
4 1 entitled to it is guilty of a fraudulent practice. The claim
4 2 for adjustment shall be disallowed in full and property tax
4 3 shall be levied on the disallowed adjustment at the rate that
4 4 would have been levied but for the adjustment. The director
4 5 of revenue shall send a notice of disallowance of the claim.
4 6 Sec. 10. NEW SECTION. 424A.10 STATUTES APPLICABLE.
4 7 To the extent not otherwise contrary, the provisions of
4 8 sections 425.30, 425.31, 425.32, and 425.37 apply to this
4 9 chapter.
4 10 Sec. 11. STATE FUNDING OF TAX CREDITS AND EXEMPTIONS ==
4 11 INAPPLICABILITY. The provisions in section 25B.7, relating to
4 12 the obligation of the state to reimburse local jurisdictions
4 13 for property tax credits and exemptions, do not apply to
4 14 chapter 424A, as enacted in this Act.
4 15 Sec. 12. APPLICABILITY DATES. This Act applies
4 16 retroactively to January 1, 2006, for assessment years
4 17 beginning on or after that date and for the filing of claims
4 18 for adjustments of assessed values on or after January 1,
4 19 2007.
4 20 EXPLANATION
4 21 This bill provides for an adjustment in the assessed value
4 22 of a homestead if the owner is a person who is 65 or older.
4 23 If that qualification is met, the assessed value of the
4 24 homestead upon which property taxes are levied in a fiscal
4 25 year is 98 percent of the assessed value. Assessed value is
4 26 that value after any rollback is applied.
4 27 The bill provides that the provision in Code section 25B.7
4 28 that requires the state to fund reimbursement for property tax
4 29 credits and exemptions does not apply to the adjustment in
4 30 value provided for in the bill.
4 31 The bill applies retroactively to January 1, 2006, for
4 32 assessment years beginning on or after that date and applies
4 33 to claims filed for the adjustments on or after January 1,
4 34 2007.
4 35 LSB 5944YH 81
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