House File 92HOUSE 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 tax limitation for certain elderly 2 persons, providing a penalty, and including an applicability 3 date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1427HH 83 6 md/mg:sc/5 PAG LIN 1 1 Section 1. NEW SECTION. 425B.1 HOMESTEAD PROPERTY TAX 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 amount of property taxes due and payable on 1 6 their homesteads, as provided in this chapter. 1 7 Sec. 2. NEW SECTION. 425B.2 DEFINITIONS. 1 8 As used in this chapter, unless the context otherwise 1 9 requires: 1 10 1. "Base year" means the calendar year last ending before 1 11 the claim for adjustment is filed. 1 12 2. "Claimant" means a person filing a claim for adjustment 1 13 under this chapter who has attained the age of sixty=five 1 14 years on or before December 31 of the base year and is 1 15 domiciled in this state at the time the claim is filed or at 1 16 the time of the person's death in the case of a claim filed by 1 17 the executor or administrator of the claimant's estate. 1 18 3. "Homestead" means the dwelling owned and actually used 1 19 as a home by the claimant during any part of the fiscal year 1 20 beginning July 1 of the base year, and so much of the land 1 21 surrounding it including one or more contiguous lots or tracts 1 22 of land, as is reasonably necessary for use of the dwelling as 1 23 a home, and may consist of a part of a multidwelling or 1 24 multipurpose building and a part of the land upon which it is 1 25 built. It does not include personal property except that a 1 26 manufactured or mobile home may be a homestead. Any dwelling 1 27 or a part of a multidwelling or multipurpose building which is 1 28 exempt from taxation does not qualify as a homestead under 1 29 this chapter. A homestead must be located in this state. 1 30 When a person is confined in a nursing home, extended=care 1 31 facility, or hospital, the person shall be considered as 1 32 occupying or living in the person's homestead if the person is 1 33 the owner of the homestead and the person maintains the 1 34 homestead and does not lease, rent, or otherwise receive 1 35 profits from other persons for the use of the homestead. 2 1 4. "Owned" means owned by an owner as defined in section 2 2 425.11. 2 3 Sec. 3. NEW SECTION. 425B.3 QUALIFYING FOR ADJUSTMENT == 2 4 FILING OF CLAIM. 2 5 1. A person who wishes to qualify for the property tax 2 6 adjustment allowed under this chapter shall obtain the 2 7 appropriate forms for filing for the adjustment from the 2 8 county auditor or county treasurer. The person claiming the 2 9 adjustment shall file a verified statement and designation of 2 10 homestead with the county auditor for the year for which the 2 11 person is first claiming the adjustment. The claim shall be 2 12 filed not later than July 1 of the year for which the person 2 13 is claiming the adjustment. A claim filed after July 1 of the 2 14 year for which the person is claiming the adjustment shall be 2 15 considered as a claim filed for the following year. 2 16 2. Upon the filing and allowance of the claim, the claim 2 17 shall be allowed on that homestead for successive years 2 18 without further filing as long as the property is legally or 2 19 equitably owned and used as a homestead by that person or that 2 20 person's spouse on July 1 of each of those successive years, 2 21 and the owner of the property being claimed as a homestead 2 22 declares residency in Iowa for purposes of income taxation, 2 23 and the property is occupied by that person or that person's 2 24 spouse for at least six months in each of those calendar years 2 25 in which the fiscal year begins. When the property is sold or 2 26 transferred, the buyer or transferee who wishes to qualify 2 27 shall refile for the adjustment. An owner who ceases to use a 2 28 property for a homestead or intends not to use it as a 2 29 homestead for at least six months in a calendar year shall 2 30 provide written notice to the county assessor by July 1 2 31 following the date on which the use is changed. A person who 2 32 sells or transfers a homestead or the personal representative 2 33 of a deceased person who had a homestead at the time of death, 2 34 shall provide written notice to the county auditor that the 2 35 property is no longer the homestead of the former claimant. 3 1 3. The right to file a claim for a property tax adjustment 3 2 under this chapter may be exercised by the claimant or on 3 3 behalf of a claimant by the claimant's legal guardian, spouse, 3 4 or attorney, or by the executor or administrator of the 3 5 claimant's estate. If a claimant dies after having filed a 3 6 claim for adjustment, the amount of any adjustment shall be 3 7 made as if the claimant had not died. 3 8 4. A person shall not make a claim for adjustment in more 3 9 than one county or for more than one dwelling in the same 3 10 county. 3 11 Sec. 4. NEW SECTION. 425B.4 VERIFICATION OF CLAIMS. 3 12 The county auditor shall retain a permanent file of current 3 13 property tax adjustment claims filed in the auditor's office. 3 14 The county auditor shall file a notice of transfer of property 3 15 for which a claim is filed when notice is received from the 3 16 office of the county recorder. 3 17 The county recorder shall give notice to the county auditor 3 18 of each transfer of title filed in the county recorder's 3 19 office. The notice shall describe the property transferred, 3 20 the name of the person transferring the title to the property, 3 21 and the name of the person to whom title to the property has 3 22 been transferred. 3 23 Not later than July 6 of each year, the county auditor 3 24 shall remit the statements and designation of homesteads to 3 25 the board of supervisors with the county auditor's 3 26 recommendation for allowance or disallowance. If the county 3 27 auditor recommends disallowance of a claim, the county auditor 3 28 shall submit the reasons for the recommendation, in writing, 3 29 to the board of supervisors. 3 30 The board shall allow or disallow the claims. If the board 3 31 disallows a claim, the board shall send written notice, by 3 32 mail, to the claimant at the claimant's last known address. 3 33 The notice shall state the reasons for disallowing the claim 3 34 for the property tax adjustment. The board is not required to 3 35 send notice that a claim is disallowed if the claimant 4 1 voluntarily withdraws the claim. 4 2 Sec. 5. NEW SECTION. 425B.5 ADJUSTMENT OF TAX DOLLARS 4 3 LEVIED == CREDIT ALLOWED. 4 4 1. a. The adjustment allowed under this chapter shall be 4 5 the amount computed in this section. 4 6 b. The county auditor shall determine the lesser of the 4 7 following: 4 8 (1) The product of the taxes due and payable on the 4 9 homestead in the previous fiscal year, excluding any 4 10 adjustment made under paragraph "c" for the previous fiscal 4 11 year, times one and two hundredths. 4 12 (2) The taxes due and payable by the claimant in the 4 13 current fiscal year. 4 14 c. If the lesser amount is the amount computed in 4 15 paragraph "b", subparagraph (1), the difference between the 4 16 amount in paragraph "b", subparagraph (2) and the amount in 4 17 paragraph "b", subparagraph (1), shall be the amount of the 4 18 property tax adjustment for the current fiscal year. 4 19 2. The amount of the property tax adjustment shall appear 4 20 as a credit on the claimant's property tax statement for the 4 21 current fiscal year. 4 22 Sec. 6. NEW SECTION. 425B.6 ADMINISTRATION. 4 23 The director of revenue shall make available suitable forms 4 24 for claiming property tax adjustments with instructions for 4 25 claimants. Each county auditor and county treasurer shall 4 26 make available the forms and instructions. The claim shall be 4 27 in a form as the director may prescribe. 4 28 Sec. 7. NEW SECTION. 425B.7 PROOF OF CLAIM. 4 29 1. In addition to the filing requirements in section 4 30 425B.3, subsection 1, every claimant shall give the county 4 31 auditor, in support of the claim, reasonable proof of: 4 32 a. Age. 4 33 b. Changes of homestead. 4 34 c. Household membership. 4 35 d. Size and nature of the property claimed as the 5 1 homestead. 5 2 2. The county auditor may require any additional proof 5 3 necessary to support a claim. 5 4 Sec. 8. NEW SECTION. 425B.8 AUDIT == DENIAL. 5 5 If on the audit of a claim for adjustment under this 5 6 chapter, the director of revenue determines the claim is not 5 7 allowable, the director shall notify the claimant of the 5 8 denial and the reasons for it. The director shall not deny a 5 9 claim after three years from October 31 of the year in which 5 10 the claim was filed. The director shall give notification to 5 11 the county auditor of the denial of the claim and the county 5 12 auditor shall instruct the county treasurer to proceed to 5 13 collect the tax that would have been levied in the same manner 5 14 as other property taxes due and payable are collected, if the 5 15 property on which the adjustment was granted is still owned by 5 16 the claimant. 5 17 Sec. 9. NEW SECTION. 425B.9 FALSE CLAIM == PENALTY. 5 18 A person who makes a false affidavit for the purpose of 5 19 obtaining an adjustment in property taxes provided for in this 5 20 chapter or who knowingly receives the adjustment without being 5 21 legally entitled to it or makes claim for the adjustment in 5 22 more than one county in the state without being legally 5 23 entitled to it is guilty of a fraudulent practice. The claim 5 24 for adjustment shall be disallowed in full and property tax 5 25 shall be levied in the amount that would have been levied but 5 26 for the adjustment. The director of revenue shall send a 5 27 notice of disallowance of the claim. 5 28 Sec. 10. NEW SECTION. 425B.10 STATUTES APPLICABLE. 5 29 To the extent not otherwise contrary, the provisions of 5 30 sections 425.30, 425.31, 425.32, and 425.37 apply to this 5 31 chapter. 5 32 Sec. 11. STATE FUNDING OF TAX CREDITS AND EXEMPTIONS == 5 33 INAPPLICABILITY. The provisions in section 25B.7, relating to 5 34 the obligation of the state to reimburse local jurisdictions 5 35 for property tax credits and exemptions, do not apply to 6 1 chapter 425B, as enacted in this Act. 6 2 Sec. 12. APPLICABILITY. This Act applies to property 6 3 taxes due and payable in the fiscal year beginning July 1, 6 4 2010, and all subsequent fiscal years. 6 5 EXPLANATION 6 6 This bill provides for an adjustment in the amount of 6 7 property taxes due and payable on a homestead if the owner is 6 8 a person who is 65 or older. If that qualification is met, 6 9 the taxes levied on the homestead shall not increase by more 6 10 than 2 percent over the previous fiscal year. 6 11 The bill provides that the provision in Code section 25B.7 6 12 that requires the state to fund reimbursement for property tax 6 13 credits and exemptions does not apply to the adjustment in 6 14 taxes provided for in the bill. 6 15 The bill applies to property taxes due and payable in the 6 16 fiscal year beginning July 1, 2010, and subsequent fiscal 6 17 years. 6 18 LSB 1427HH 83 6 19 md/mg:sc/5