Senate File 448 - Introduced

SENATE FILE  	 BY	ZAUN

Passed Senate, Date		Passed House,	Date  	 Vote:	Ayes	Nays		Vote:	Ayes		Nays  	 
Approved  	

A BILL FOR

An Act providing a property assessment adjustment for certain
persons who have attained the age of sixty=five, providing a
penalty, and including retroactive applicability date
provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 2628XS 83
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PAG LIN

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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.
35 When a person is confined in a nursing home, extended=care
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
35 assessment year shall be adjusted, but not increased, to equal
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
35 taxes due and payable are collected, if the property on which
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
35 beginning on or after that date and to the filing of claims on
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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