S.F. 2078 Section 1. NEW SECTION . 425B.1 Homestead assessed value 1 adjustment —— purpose. 2 Persons who own their homesteads and who meet the 3 qualifications provided in this chapter are eligible for an 4 adjustment in the assessed value of their homesteads, as 5 provided in this chapter, to prevent an increase in such 6 values. 7 Sec. 2. NEW SECTION . 425B.2 Definitions. 8 As used in this chapter, unless the context otherwise 9 requires: 10 1. “Assessed value” means the actual value prior to any 11 adjustment pursuant to section 441.21, subsection 4. 12 2. “Base assessment year” means the assessment year 13 beginning in the base year. 14 3. “Base year” means the calendar year last ending before 15 the claim is filed. 16 4. “Claimant” means a person filing a claim for adjustment 17 under this chapter who is domiciled in this state at the time 18 the claim is filed or at the time of the person’s death in the 19 case of a claim filed by the executor or administrator of the 20 claimant’s estate. 21 5. “Homestead” means the dwelling owned and actually used 22 as a home by the claimant during any part of the fiscal year 23 beginning July 1 of the base year and so much of the land 24 surrounding it, including one or more contiguous lots or tracts 25 of land, as is reasonably necessary for use of the dwelling 26 as a home, and may consist of a part of a multidwelling or 27 multipurpose building and a part of the land upon which it is 28 built. It does not include personal property except that a 29 manufactured or mobile home may be a homestead. Any dwelling 30 or a part of a multidwelling or multipurpose building which is 31 exempt from taxation does not qualify as a homestead under this 32 chapter. A homestead must be located in this state. When a 33 person is confined in a nursing home, extended-care facility, 34 or hospital, the person shall be considered as occupying or 35 -1- LSB 5828SS (2) 84 md/sc 1/ 5

S.F. 2078 living in the person’s homestead if the person is the owner 1 of the homestead and the person maintains the homestead and 2 does not lease, rent, or otherwise receive profits from other 3 persons for the use of the homestead. 4 6. “Household” means the same as defined in section 425.17. 5 7. “Income” means any form of payment due an individual, 6 regardless of source, including but not limited to wages, 7 salaries, commissions, bonuses, workers’ compensation, 8 disability payments, payments pursuant to a pension or 9 retirement program, payments received under the federal Social 10 Security Act, and interest. “Income” does not include gifts 11 from nongovernmental sources, or surplus foods or other relief 12 in kind supplied by a governmental agency or nongovernmental 13 source. 14 8. “Owned” means owned by an owner as defined in section 15 425.11. 16 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 17 The right to file a claim for an assessed value adjustment 18 under this chapter may be exercised by the claimant or on 19 behalf of a claimant by the claimant’s legal guardian, spouse, 20 or attorney, or by the executor or administrator of the 21 claimant’s estate. If a claimant dies after having filed a 22 claim for adjustment, the amount of any adjustment shall be 23 made as if the claimant had not died. 24 Sec. 4. NEW SECTION . 425B.4 Claim for adjustment. 25 1. Subject to the limitations provided in this chapter, 26 a claimant may annually claim an adjustment of the assessed 27 value of the claimant’s homestead for the base assessment year. 28 The adjustment claim shall be filed with the county assessor 29 between January 1 and February 15 immediately following 30 the close of the base assessment year. However, in case of 31 sickness, absence, or other disability of the claimant, or 32 if in the judgment of the county assessor good cause exists, 33 the county assessor may extend the time for filing a claim for 34 adjustment through June 30 of the same calendar year. 35 -2- LSB 5828SS (2) 84 md/sc 2/ 5

S.F. 2078 2. The county assessor shall notify the department of 1 revenue by March 1 of the number of claimants receiving 2 adjustments under this chapter and the total amount of the 3 reduced assessed values for the base assessment year. 4 Sec. 5. NEW SECTION . 425B.5 Qualification and adjustment 5 —— maximum tax dollars levied. 6 1. If the household income qualification specified in 7 subsection 2 is met, the assessed value of the claimant’s 8 homestead in the base assessment year shall be adjusted, but 9 not increased, to equal the assessed value, as such assessed 10 value may have been adjusted pursuant to this chapter, in the 11 assessment year preceding the base assessment year. If the 12 amount of property taxes levied against the adjusted assessment 13 exceed the amount of property taxes levied against the property 14 in the fiscal year for which taxes were first levied against 15 an adjusted assessment under this chapter, the treasurer shall 16 subtract the difference from the amount due. 17 2. A claimant is eligible for an adjustment to the assessed 18 value of the claimant’s homestead if the claimant’s household 19 income consists solely of payments received under the federal 20 Social Security Act in the base year. 21 Sec. 6. NEW SECTION . 425B.6 Administration. 22 The director of revenue shall make available suitable forms 23 for claiming an assessed value adjustment with instructions 24 for claimants. Each assessor and county treasurer shall make 25 available the forms and instructions. The claim shall be in a 26 form as the director may prescribe. 27 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 28 1. Every claimant shall give the department of revenue, in 29 support of the claim, reasonable proof of: 30 a. Changes of homestead. 31 b. Household membership. 32 c. Household income. 33 d. Size and nature of the property claimed as the homestead. 34 2. The director of revenue may require any additional proof 35 -3- LSB 5828SS (2) 84 md/sc 3/ 5

S.F. 2078 necessary to support a claim. 1 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 2 If on the audit of a claim for adjustment under this chapter, 3 the director of revenue determines the claim is not allowable, 4 the director shall notify the claimant of the denial and the 5 reasons for it. The director shall not deny a claim after 6 three years from October 31 of the year in which the claim was 7 filed. The director shall give notification to the county 8 assessor of the denial of the claim and the county assessor 9 shall instruct the county treasurer to proceed to collect the 10 tax that would have been levied on the applicable adjusted 11 assessed value in the same manner as other property taxes 12 due and payable are collected, if the property on which the 13 adjustment was granted is still owned by the claimant. 14 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 15 1. A claimant shall expressly waive any right to 16 confidentiality relating to all income tax information 17 obtainable through the department of revenue, including all 18 information covered by sections 422.20 and 422.72. This waiver 19 shall apply to information available to the county assessor who 20 shall hold the information confidential except that it may be 21 used as evidence to disallow the assessed value adjustment. 22 2. The department of revenue may release information 23 pertaining to a person’s eligibility or claim for or receipt of 24 the assessed value adjustment to an employee of the department 25 of inspections and appeals in the employee’s official conduct 26 of an audit or investigation. 27 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 28 A person who makes a false affidavit for the purpose of 29 obtaining an adjustment in assessed value provided for in 30 this chapter or who knowingly receives the adjustment without 31 being legally entitled to it or makes claim for the adjustment 32 in more than one county in the state without being legally 33 entitled to it is guilty of a fraudulent practice. The claim 34 for adjustment shall be disallowed in full and property tax 35 -4- LSB 5828SS (2) 84 md/sc 4/ 5

S.F. 2078 shall be levied on the disallowed adjustment at the rate that 1 would have been levied but for the adjustment. The director of 2 revenue shall send a notice of disallowance of the claim. 3 Sec. 11. NEW SECTION . 425B.11 Statutes applicable. 4 To the extent not otherwise contrary, the provisions of 5 sections 425.30, 425.31, 425.32, and 425.37 apply to this 6 chapter. 7 Sec. 12. RETROACTIVE APPLICABILITY. This Act applies 8 retroactively to January 1, 2012, for assessment years 9 beginning on or after that date and to the filing of claims on 10 or after January 1, 2013, for adjustments of assessed values. 11 EXPLANATION 12 This bill relates to property taxation by allowing 13 adjustments to certain homesteads based on income limits. 14 The bill provides for an adjustment in the assessed value of 15 a homestead if the owner’s household income consists solely of 16 payments received under the federal Social Security Act. If 17 the qualification is met, the assessed value of the homestead 18 upon which property taxes are levied in a fiscal year is the 19 same assessed value as for the previous fiscal year. Assessed 20 value is that value prior to any rollback being applied. 21 The bill provides that a person who makes a false affidavit 22 for the purpose of obtaining an adjustment, knowingly receives 23 the adjustment without being legally entitled to it, or makes 24 claim for the adjustment in more than one county without being 25 legally entitled to it is guilty of a fraudulent practice and 26 is subject to a criminal penalty. 27 The bill applies retroactively to January 1, 2012, for 28 assessment years beginning on or after that date and applies to 29 claims filed on or after January 1, 2013, for the adjustments. 30 -5- LSB 5828SS (2) 84 md/sc 5/ 5