House File 352 - Introduced HOUSE FILE BY SANDS 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 certain 2 persons over the age of sixty=five, providing a penalty, and 3 including retroactive applicability date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2018YH 83 6 md/sc/5 PAG LIN 1 1 Section 1. NEW SECTION. 425B.1 HOMESTEAD ASSESSED VALUE 1 2 ADJUSTMENT == PURPOSE. 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, to prevent an increase in such 1 7 values. 1 8 Sec. 2. NEW SECTION. 425B.2 DEFINITIONS. 1 9 As used in this chapter, unless the context otherwise 1 10 requires: 1 11 1. "Assessed value" means the actual value prior to any 1 12 adjustment pursuant to section 441.21, subsection 4. 1 13 2. "Base assessment year" means the assessment year 1 14 beginning in the base year. 1 15 3. "Base year" means the calendar year last ending before 1 16 the claim is filed. 1 17 4. "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 base year and is 1 20 domiciled in this state at the time the claim is filed or at 1 21 the time of the person's death in the case of a claim filed by 1 22 the executor or administrator of the claimant's estate. 1 23 5. "Homestead" means the dwelling owned and actually used 1 24 as a home by the claimant during any part of the fiscal year 1 25 beginning July 1 of the base year, and so much of the land 1 26 surrounding it including one or more contiguous lots or tracts 1 27 of land, as is reasonably necessary for use of the dwelling as 1 28 a home, and may consist of a part of a multidwelling or 1 29 multipurpose building and a part of the land upon which it is 1 30 built. It does not include personal property except that a 1 31 manufactured or mobile home may be a homestead. Any dwelling 1 32 or a part of a multidwelling or multipurpose building which is 1 33 exempt from taxation does not qualify as a homestead under 1 34 this chapter. A homestead must be located in this state. 1 35 When a person is confined in a nursing home, extended=care 2 1 facility, or hospital, the person shall be considered as 2 2 occupying or living in the person's homestead if the person is 2 3 the owner of the homestead and the person maintains the 2 4 homestead and does not lease, rent, or otherwise receive 2 5 profits from other persons for the use of the homestead. 2 6 6. "Household", "household income", and "income" mean the 2 7 same as those terms are defined in section 425.17. 2 8 7. "Owned" means owned by an owner as defined in section 2 9 425.11. 2 10 Sec. 3. NEW SECTION. 425B.3 RIGHT TO FILE A CLAIM. 2 11 The right to file a claim for an assessed value adjustment 2 12 under this chapter may be exercised by the claimant or on 2 13 behalf of a claimant by the claimant's legal guardian, spouse, 2 14 or attorney, or by the executor or administrator of the 2 15 claimant's estate. If a claimant dies after having filed a 2 16 claim for adjustment, the amount of any adjustment shall be 2 17 made as if the claimant had not died. 2 18 Sec. 4. NEW SECTION. 425B.4 CLAIM FOR ADJUSTMENT. 2 19 1. Subject to the limitations provided in this chapter, a 2 20 claimant may annually claim an adjustment of the assessed 2 21 value of the claimant's homestead for the base assessment 2 22 year. The adjustment claim shall be filed with the county 2 23 assessor between January 1 and February 15 immediately 2 24 following the close of the base assessment year. However, in 2 25 case of sickness, absence, or other disability of the 2 26 claimant, or if in the judgment of the county assessor good 2 27 cause exists, the county assessor may extend the time for 2 28 filing a claim for adjustment through June 30 of the same 2 29 calendar year. 2 30 2. The county assessor shall notify the department of 2 31 revenue by March 1 of the number of claimants receiving 2 32 adjustments under this chapter and the total amount of the 2 33 reduced assessed values for the base assessment year. 2 34 Sec. 5. NEW SECTION. 425B.5 QUALIFICATION AND ADJUSTMENT 2 35 == MAXIMUM TAX DOLLARS LEVIED. 3 1 1. If the household income qualification specified in 3 2 subsection 2 is met, the assessed value of the claimant's 3 3 homestead in the base assessment year shall be adjusted, but 3 4 not increased, to equal the assessed value, as such assessed 3 5 value may have been adjusted pursuant to this chapter, in the 3 6 assessment year preceding the base assessment year. If the 3 7 amount of property taxes levied against the adjusted 3 8 assessment exceed the amount of property taxes levied against 3 9 the property in the fiscal year for which taxes were first 3 10 levied against an adjusted assessment under this chapter, the 3 11 treasurer shall subtract the difference from the amount due. 3 12 2. A claimant is eligible for an adjustment to the 3 13 assessed value of the claimant's homestead if the claimant's 3 14 household income is twenty=five thousand dollars or less in 3 15 the base year. 3 16 Sec. 6. NEW SECTION. 425B.6 ADMINISTRATION. 3 17 The director of revenue shall make available suitable forms 3 18 for claiming an assessed value adjustment with instructions 3 19 for claimants. Each assessor and county treasurer shall make 3 20 available the forms and instructions. The claim shall be in a 3 21 form as the director may prescribe. 3 22 Sec. 7. NEW SECTION. 425B.7 PROOF OF CLAIM. 3 23 1. Every claimant shall give the department of revenue, in 3 24 support of the claim, reasonable proof of: 3 25 a. Age. 3 26 b. Changes of homestead. 3 27 c. Household membership. 3 28 d. Household income. 3 29 e. Size and nature of the property claimed as the 3 30 homestead. 3 31 2. The director of revenue may require any additional 3 32 proof necessary to support a claim. 3 33 Sec. 8. NEW SECTION. 425B.8 AUDIT == DENIAL. 3 34 If on the audit of a claim for adjustment under this 3 35 chapter, the director of revenue determines the claim is not 4 1 allowable, the director shall notify the claimant of the 4 2 denial and the reasons for it. The director shall not deny a 4 3 claim after three years from October 31 of the year in which 4 4 the claim was filed. The director shall give notification to 4 5 the county assessor of the denial of the claim and the county 4 6 assessor shall instruct the county treasurer to proceed to 4 7 collect the tax that would have been levied on the applicable 4 8 adjusted assessed value in the same manner as other property 4 9 taxes due and payable are collected, if the property on which 4 10 the adjustment was granted is still owned by the claimant. 4 11 Sec. 9. NEW SECTION. 425B.9 WAIVER OF CONFIDENTIALITY. 4 12 1. A claimant shall expressly waive any right to 4 13 confidentiality relating to all income tax information 4 14 obtainable through the department of revenue, including all 4 15 information covered by sections 422.20 and 422.72. This 4 16 waiver shall apply to information available to the county 4 17 assessor who shall hold the information confidential except 4 18 that it may be used as evidence to disallow the assessed value 4 19 adjustment. 4 20 2. The department of revenue may release information 4 21 pertaining to a person's eligibility or claim for or receipt 4 22 of the assessed value adjustment to an employee of the 4 23 department of inspections and appeals in the employee's 4 24 official conduct of an audit or investigation. 4 25 Sec. 10. NEW SECTION. 425B.10 FALSE CLAIM == PENALTY. 4 26 A person who makes a false affidavit for the purpose of 4 27 obtaining an adjustment in assessed value provided for in this 4 28 chapter or who knowingly receives the adjustment without being 4 29 legally entitled to it or makes claim for the adjustment in 4 30 more than one county in the state without being legally 4 31 entitled to it is guilty of a fraudulent practice. The claim 4 32 for adjustment shall be disallowed in full and property tax 4 33 shall be levied on the disallowed adjustment at the rate that 4 34 would have been levied but for the adjustment. The director 4 35 of revenue shall send a notice of disallowance of the claim. 5 1 Sec. 11. NEW SECTION. 425B.11 STATUTES APPLICABLE. 5 2 To the extent not otherwise contrary, the provisions of 5 3 sections 425.30, 425.31, 425.32, and 425.37 apply to this 5 4 chapter. 5 5 Sec. 12. STATE FUNDING OF TAX CREDITS AND EXEMPTIONS == 5 6 INAPPLICABILITY. The provisions in section 25B.7, relating to 5 7 the obligation of the state to reimburse local jurisdictions 5 8 for property tax credits and exemptions, do not apply to 5 9 chapter 425B, as enacted in this Act. 5 10 Sec. 13. APPLICABILITY DATES. This Act applies 5 11 retroactively to January 1, 2009, for assessment years 5 12 beginning on or after that date and to the filing of claims on 5 13 or after January 1, 2010, for adjustments of assessed values. 5 14 EXPLANATION 5 15 This bill provides for an adjustment (freeze) in the 5 16 assessed value of a homestead if the owner is a person who is 5 17 65 or older and whose household income is $25,000 or less. If 5 18 those qualifications are met, the assessed value of the 5 19 homestead upon which property taxes are levied in a fiscal 5 20 year is the same assessed value as for the previous fiscal 5 21 year. Assessed value is that value prior to any rollback 5 22 being applied. 5 23 The bill provides that a person who makes a false affidavit 5 24 for the purpose of obtaining an adjustment, knowingly receives 5 25 the adjustment without being legally entitled to it, or makes 5 26 claim for the adjustment in more than one county without being 5 27 legally entitled to it is guilty of a fraudulent practice and 5 28 is subject to a criminal penalty. 5 29 The bill provides that the provision in Code section 25B.7 5 30 that requires the state to fund reimbursement for property tax 5 31 credits and exemptions does not apply to the adjustment in 5 32 value provided for in the bill. 5 33 The bill applies retroactively to January 1, 2009, for 5 34 assessment years beginning on or after that date and applies 5 35 to claims filed on or after January 1, 2010, for the 6 1 adjustments. 6 2 LSB 2018YH 83 6 3 md/sc/5