Senate File 32 - Introduced SENATE FILE 32 BY ANDERSON and BERTRAND A BILL FOR An Act relating to a property assessment adjustment for certain 1 persons, applying income and age limitations, providing a 2 penalty, and including retroactive and other applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1654XS (2) 85 md/sc
S.F. 32 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 has attained the age of sixty-five years 18 on or before December 31 of the base year and is domiciled in 19 this state at the time the claim is filed or at the time of the 20 person’s death in the case of a claim filed by the executor or 21 administrator of the claimant’s estate. 22 5. “Homestead” means the dwelling owned and actually used 23 as a home by the claimant during any part of the fiscal year 24 beginning July 1 of the base year and so much of the land 25 surrounding it, including one or more contiguous lots or tracts 26 of land, as is reasonably necessary for use of the dwelling 27 as a home, and may consist of a part of a multidwelling or 28 multipurpose building and a part of the land upon which it is 29 built. It does not include personal property except that a 30 manufactured or mobile home may be a homestead. Any dwelling 31 or a part of a multidwelling or multipurpose building which is 32 exempt from taxation does not qualify as a homestead under this 33 chapter. A homestead must be located in this state. When a 34 person is confined in a nursing home, extended-care facility, 35 -1- LSB 1654XS (2) 85 md/sc 1/ 5
S.F. 32 or hospital, the person shall be considered as occupying or 1 living in the person’s homestead if the person is the owner 2 of the homestead and the person maintains the homestead and 3 does not lease, rent, or otherwise receive profits from other 4 persons for the use of the homestead. 5 6. “Household” , “household income” , and “income” mean the 6 same as those terms are defined in section 425.17. 7 7. “Owned” means owned by an owner as defined in section 8 425.11. 9 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 10 The right to file a claim for an assessed value adjustment 11 under this chapter may be exercised by the claimant or on 12 behalf of a claimant by the claimant’s legal guardian, spouse, 13 or attorney, or by the executor or administrator of the 14 claimant’s estate. If a claimant dies after having filed a 15 claim for adjustment, the amount of any adjustment shall be 16 made as if the claimant had not died. 17 Sec. 4. NEW SECTION . 425B.4 Claim for adjustment. 18 1. Subject to the limitations provided in this chapter, 19 a claimant may annually claim an adjustment of the assessed 20 value of the claimant’s homestead for the base assessment year. 21 The adjustment claim shall be filed with the county assessor 22 between January 1 and February 15 immediately following 23 the close of the base assessment year. However, in case of 24 sickness, absence, or other disability of the claimant, or 25 if in the judgment of the county assessor good cause exists, 26 the county assessor may extend the time for filing a claim for 27 adjustment through June 30 of the same calendar year. 28 2. The county assessor shall notify the department of 29 revenue by March 1 of the number of claimants receiving 30 adjustments under this chapter and the total amount of the 31 reduced assessed values for the base assessment year. 32 Sec. 5. NEW SECTION . 425B.5 Qualification and adjustment 33 —— maximum tax dollars levied. 34 1. If the household income qualification specified in 35 -2- LSB 1654XS (2) 85 md/sc 2/ 5
S.F. 32 subsection 2 is met, the assessed value of the claimant’s 1 homestead in the base assessment year shall be adjusted, but 2 not increased, to equal the assessed value, as such assessed 3 value may have been adjusted pursuant to this chapter, in 4 the assessment year preceding the base assessment year. If 5 the amount of property taxes levied against the adjusted 6 assessment exceeds the amount of property taxes levied against 7 the property in the fiscal year for which taxes were first 8 levied against an adjusted assessment under this chapter, the 9 treasurer shall subtract the difference from the amount due. 10 2. A claimant is eligible for an adjustment to the assessed 11 value of the claimant’s homestead if the claimant’s household 12 income is twenty-five thousand dollars or less in the base 13 year. 14 Sec. 6. NEW SECTION . 425B.6 Administration. 15 The director of revenue shall make available suitable forms 16 for claiming an assessed value adjustment with instructions 17 for claimants. Each assessor and county treasurer shall make 18 available the forms and instructions. The claim shall be in a 19 form as the director may prescribe. 20 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 21 1. Every claimant shall give the department of revenue, in 22 support of the claim, reasonable proof of: 23 a. Age. 24 b. Changes of homestead. 25 c. Household membership. 26 d. Household income. 27 e. Size and nature of the property claimed as the homestead. 28 2. The director of revenue may require any additional proof 29 necessary to support a claim. 30 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 31 If on the audit of a claim for adjustment under this chapter, 32 the director of revenue determines the claim is not allowable, 33 the director shall notify the claimant of the denial and the 34 reasons for it. The director shall not deny a claim after 35 -3- LSB 1654XS (2) 85 md/sc 3/ 5
S.F. 32 three years from October 31 of the year in which the claim was 1 filed. The director shall give notification to the county 2 assessor of the denial of the claim and the county assessor 3 shall instruct the county treasurer to proceed to collect the 4 tax that would have been levied on the applicable adjusted 5 assessed value in the same manner as other property taxes 6 due and payable are collected, if the property on which the 7 adjustment was granted is still owned by the claimant. 8 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 9 1. A claimant shall expressly waive any right to 10 confidentiality relating to all income tax information 11 obtainable through the department of revenue, including all 12 information covered by sections 422.20 and 422.72. This waiver 13 shall apply to information available to the county assessor who 14 shall hold the information confidential except that it may be 15 used as evidence to disallow the assessed value adjustment. 16 2. The department of revenue may release information 17 pertaining to a person’s eligibility or claim for or receipt of 18 the assessed value adjustment to an employee of the department 19 of inspections and appeals in the employee’s official conduct 20 of an audit or investigation. 21 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 22 A person who makes a false affidavit for the purpose of 23 obtaining an adjustment in assessed value provided for in 24 this chapter or who knowingly receives the adjustment without 25 being legally entitled to it or makes claim for the adjustment 26 in more than one county in the state without being legally 27 entitled to it is guilty of a fraudulent practice. The claim 28 for adjustment shall be disallowed in full and property tax 29 shall be levied on the disallowed adjustment at the rate that 30 would have been levied but for the adjustment. The director of 31 revenue shall send a notice of disallowance of the claim. 32 Sec. 11. NEW SECTION . 425B.11 Statutes applicable. 33 To the extent not otherwise contrary, the provisions of 34 sections 425.30, 425.31, 425.32, and 425.37 apply to this 35 -4- LSB 1654XS (2) 85 md/sc 4/ 5
S.F. 32 chapter. 1 Sec. 12. APPLICABILITY. This Act applies retroactively to 2 January 1, 2013, for assessment years beginning on or after 3 that date and to the filing of claims on or after January 1, 4 2014, for adjustments of assessed values. 5 EXPLANATION 6 This bill provides for an adjustment in the assessed value 7 of a homestead if the owner is a person who is 65 or older 8 and whose household income is $25,000 or less. If those 9 qualifications are met, the assessed value of the homestead 10 upon which property taxes are levied in a fiscal year is the 11 same assessed value as for the previous fiscal year. The 12 bill specifies that assessed value is that value prior to any 13 rollback being applied. 14 The bill provides that a person who makes a false affidavit 15 for the purpose of obtaining an adjustment, knowingly receives 16 the adjustment without being legally entitled to it, or makes 17 claim for the adjustment in more than one county without being 18 legally entitled to it is guilty of a fraudulent practice and 19 is subject to a criminal penalty. 20 The bill applies retroactively to January 1, 2013, for 21 assessment years beginning on or after that date and applies to 22 claims filed on or after January 1, 2014, for the adjustments. 23 -5- LSB 1654XS (2) 85 md/sc 5/ 5