Senate File 448 - Introduced
SENATE FILE
BY ZAUN
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing a property assessment adjustment for certain
2 persons who have attained the age of sixty=five, providing a
3 penalty, and including retroactive applicability date
4 provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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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. "Owned" means owned by an owner as defined in section
2 7 425.11.
2 8 Sec. 3. NEW SECTION. 425B.3 RIGHT TO FILE A CLAIM.
2 9 The right to file a claim for an assessed value adjustment
2 10 under this chapter may be exercised by the claimant or on
2 11 behalf of a claimant by the claimant's legal guardian, spouse,
2 12 or attorney, or by the executor or administrator of the
2 13 claimant's estate. If a claimant dies after having filed a
2 14 claim for adjustment, the amount of any adjustment shall be
2 15 made as if the claimant had not died.
2 16 Sec. 4. NEW SECTION. 425B.4 CLAIM FOR ADJUSTMENT.
2 17 1. Subject to the limitations provided in this chapter, a
2 18 claimant may annually claim an adjustment of the assessed
2 19 value of the claimant's homestead for the base assessment
2 20 year. The adjustment claim shall be filed with the county
2 21 assessor between January 1 and February 15 immediately
2 22 following the close of the base assessment year. However, in
2 23 case of sickness, absence, or other disability of the
2 24 claimant, or if in the judgment of the county assessor good
2 25 cause exists, the county assessor may extend the time for
2 26 filing a claim for adjustment through June 30 of the same
2 27 calendar year.
2 28 2. The county assessor shall notify the department of
2 29 revenue by March 1 of the number of claimants receiving
2 30 adjustments under this chapter and the total amount of the
2 31 reduced assessed values for the base assessment year.
2 32 Sec. 5. NEW SECTION. 425B.5 ADJUSTMENT == MAXIMUM TAX
2 33 DOLLARS LEVIED.
2 34 The assessed value of the claimant's homestead in the base
2 35 assessment year shall be adjusted, but not increased, to equal
3 1 the assessed value, as such assessed value may have been
3 2 adjusted pursuant to this chapter, in the assessment year
3 3 preceding the base assessment year. If the amount of property
3 4 taxes levied against the adjusted assessment exceed the amount
3 5 of property taxes levied against the property in the fiscal
3 6 year for which taxes were first levied against an adjusted
3 7 assessment under this chapter, the treasurer shall subtract
3 8 the difference from the amount due.
3 9 Sec. 6. NEW SECTION. 425B.6 ADMINISTRATION.
3 10 The director of revenue shall make available suitable forms
3 11 for claiming an assessed value adjustment with instructions
3 12 for claimants. Each assessor and county treasurer shall make
3 13 available the forms and instructions. The claim shall be in a
3 14 form as the director may prescribe.
3 15 Sec. 7. NEW SECTION. 425B.7 PROOF OF CLAIM.
3 16 1. Every claimant shall give the department of revenue, in
3 17 support of the claim, reasonable proof of:
3 18 a. Age.
3 19 b. Changes of homestead.
3 20 c. Size and nature of the property claimed as the
3 21 homestead.
3 22 2. The director of revenue may require any additional
3 23 proof necessary to support a claim.
3 24 Sec. 8. NEW SECTION. 425B.8 AUDIT == DENIAL.
3 25 If on the audit of a claim for adjustment under this
3 26 chapter, the director of revenue determines the claim is not
3 27 allowable, the director shall notify the claimant of the
3 28 denial and the reasons for it. The director shall not deny a
3 29 claim after three years from October 31 of the year in which
3 30 the claim was filed. The director shall give notification to
3 31 the county assessor of the denial of the claim and the county
3 32 assessor shall instruct the county treasurer to proceed to
3 33 collect the tax that would have been levied on the applicable
3 34 adjusted assessed value in the same manner as other property
3 35 taxes due and payable are collected, if the property on which
4 1 the adjustment was granted is still owned by the claimant.
4 2 Sec. 9. NEW SECTION. 425B.9 WAIVER OF CONFIDENTIALITY.
4 3 1. A claimant shall expressly waive any right to
4 4 confidentiality relating to all information available to the
4 5 county assessor who shall hold the information confidential
4 6 except that it may be used as evidence to disallow the
4 7 assessed value adjustment.
4 8 2. The department of revenue may release information
4 9 pertaining to a person's eligibility or claim for or receipt
4 10 of the assessed value adjustment to an employee of the
4 11 department of inspections and appeals in the employee's
4 12 official conduct of an audit or investigation.
4 13 Sec. 10. NEW SECTION. 425B.10 FALSE CLAIM == PENALTY.
4 14 A person who makes a false affidavit for the purpose of
4 15 obtaining an adjustment in assessed value provided for in this
4 16 chapter or who knowingly receives the adjustment without being
4 17 legally entitled to it or makes claim for the adjustment in
4 18 more than one county in the state without being legally
4 19 entitled to it is guilty of a fraudulent practice. The claim
4 20 for adjustment shall be disallowed in full and property tax
4 21 shall be levied on the disallowed adjustment at the rate that
4 22 would have been levied but for the adjustment. The director
4 23 of revenue shall send a notice of disallowance of the claim.
4 24 Sec. 11. NEW SECTION. 425B.11 STATUTES APPLICABLE.
4 25 To the extent not otherwise contrary, the provisions of
4 26 sections 425.30, 425.31, 425.32, and 425.37 apply to this
4 27 chapter.
4 28 Sec. 12. STATE FUNDING OF TAX CREDITS AND EXEMPTIONS ==
4 29 INAPPLICABILITY. The provisions in section 25B.7, relating to
4 30 the obligation of the state to reimburse local jurisdictions
4 31 for property tax credits and exemptions, do not apply to
4 32 chapter 425B, as enacted in this Act.
4 33 Sec. 13. APPLICABILITY DATES. This Act applies
4 34 retroactively to January 1, 2009, for assessment years
4 35 beginning on or after that date and to the filing of claims on
5 1 or after January 1, 2010, for adjustments of assessed values.
5 2 EXPLANATION
5 3 This bill provides for an adjustment (freeze) in the
5 4 assessed value of a homestead if the owner is a person who is
5 5 65 or older. The assessed value of the homestead upon which
5 6 property taxes are levied in a fiscal year is the same
5 7 assessed value as for the previous fiscal year. Assessed
5 8 value is that value prior to any rollback being applied.
5 9 The bill provides that a person who makes a false affidavit
5 10 for the purpose of obtaining an adjustment, knowingly receives
5 11 the adjustment without being legally entitled to it, or makes
5 12 claim for the adjustment in more than one county without being
5 13 legally entitled to it is guilty of a fraudulent practice and
5 14 is subject to a criminal penalty.
5 15 The bill provides that the provision in Code section 25B.7
5 16 that requires the state to fund reimbursement for property tax
5 17 credits and exemptions does not apply to the adjustment in
5 18 value provided for in the bill.
5 19 The bill applies retroactively to January 1, 2009, for
5 20 assessment years beginning on or after that date and applies
5 21 to claims filed on or after January 1, 2010, for the
5 22 adjustments.
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