S.F. 83 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 4 an adjustment in the assessed value of their homesteads or 5 an adjustment of the amount of taxes levied against their 6 homestead, as provided in this chapter, to prevent an increase 7 in such values or an increase in the amount of taxes levied. 8 Sec. 2. NEW SECTION . 425B.2 Definitions. 9 As used in this chapter, unless the context otherwise 10 requires: 11 1. “Assessed value” means the actual value prior to any 12 adjustment pursuant to section 441.21, subsection 4. 13 2. “Base assessment year” means the assessment year 14 beginning in the base year. 15 3. “Base year” means the calendar year last ending before 16 the claim is filed. 17 4. “Claimant” means a person filing a claim for adjustment 18 under this chapter who has attained the age of seventy years 19 on or before December 31 of the base year and is domiciled in 20 this state at the time the claim is filed or at the time of the 21 person’s death in the case of a claim filed by the executor or 22 administrator of the claimant’s estate. 23 5. “Earned income” means the same as defined in section 32 24 of the Internal Revenue Code. 25 6. “Homestead” means the dwelling owned and actually used 26 as a home by the claimant during at least six months of the 27 base year and each of the nine years immediately preceding the 28 base year, and so much of the land surrounding it, including 29 one or more contiguous lots or tracts of land, as is reasonably 30 necessary for use of the dwelling as a home, and may consist 31 of a part of a multidwelling or multipurpose building and a 32 part of the land upon which it is built. It does not include 33 personal property except that a manufactured or mobile home 34 may be a homestead. Any dwelling or a part of a multidwelling 35 -1- LSB 1756XS (1) 86 md/sc 1/ 6

S.F. 83 or multipurpose building which is exempt from taxation does 1 not qualify as a homestead under this chapter. A homestead 2 must be located in this state. When a person is confined in a 3 nursing home, extended-care facility, or hospital, the person 4 shall be considered as occupying or living in the person’s 5 homestead if the person is the owner of the homestead and the 6 person maintains the homestead and does not lease, rent, or 7 otherwise receive profits from other persons for the use of the 8 homestead. 9 7. “Owned” means owned by an owner as defined in section 10 425.11. 11 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 12 The right to file a claim for an assessed value adjustment 13 under this chapter may be exercised by the claimant or on 14 behalf of a claimant by the claimant’s legal guardian, spouse, 15 or attorney, or by the executor or administrator of the 16 claimant’s estate. If a claimant dies after having filed a 17 claim for adjustment, the amount of any adjustment shall be 18 made as if the claimant had not died. 19 Sec. 4. NEW SECTION . 425B.4 Claim for adjustment. 20 1. Subject to the limitations provided in this chapter, 21 a claimant may annually claim an adjustment of the assessed 22 value of the claimant’s homestead for the base assessment year. 23 The adjustment claim shall be filed with the county assessor 24 between January 1 and February 15 immediately following 25 the close of the base assessment year. However, in case of 26 sickness, absence, or other disability of the claimant, or 27 if in the judgment of the county assessor good cause exists, 28 the county assessor may extend the time for filing a claim for 29 adjustment through June 30 of the same calendar year. 30 2. The county assessor shall notify the department of 31 revenue by March 1 of the number of claimants receiving 32 adjustments under this chapter and the total amount of the 33 reduced assessed values for the base assessment year. 34 Sec. 5. NEW SECTION . 425B.5 Adjustment —— maximum tax 35 -2- LSB 1756XS (1) 86 md/sc 2/ 6

S.F. 83 dollars levied. 1 1. If the earned income qualification specified in 2 subsection 2 is met, the assessed value of the claimant’s 3 homestead in the base assessment year shall be adjusted, but 4 not increased, to equal the assessed value, as such assessed 5 value may have been adjusted pursuant to this chapter, in 6 the assessment year preceding the base assessment year. If 7 the amount of property taxes levied against the adjusted 8 assessment exceeds the amount of property taxes levied against 9 the property in the fiscal year for which taxes were first 10 levied against an adjusted assessment under this chapter, the 11 treasurer shall subtract the difference from the amount due. 12 2. A claimant is eligible for an adjustment to the assessed 13 value of the claimant’s homestead if the claimant’s household 14 earned income is less than twelve thousand dollars in the base 15 year. 16 Sec. 6. NEW SECTION . 425B.6 Administration. 17 The director of revenue shall make available suitable forms 18 for claiming an assessed value adjustment with instructions 19 for claimants. Each assessor and county treasurer shall make 20 available the forms and instructions. The claim shall be in a 21 form as the director may prescribe. 22 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 23 1. Every claimant shall give the department of revenue, in 24 support of the claim, reasonable proof of: 25 a. Age. 26 b. Changes of homestead. 27 c. Size and nature of the property claimed as the homestead. 28 d. Household earned income. 29 2. The director of revenue may require any additional proof 30 necessary to support a claim. 31 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 32 If on the audit of a claim for adjustment under this 33 chapter, the director of revenue determines the claim is not 34 allowable, the director shall notify the claimant of the denial 35 -3- LSB 1756XS (1) 86 md/sc 3/ 6

S.F. 83 and the reasons for it. The director shall not deny a claim 1 after three years from October 31 of the year in which the 2 claim was filed. The director shall give notification to the 3 county assessor of the denial of the claim and the county 4 assessor shall instruct the county treasurer to proceed to 5 collect the tax that would have been levied on the applicable 6 adjusted assessed value in the same manner as other property 7 taxes due and payable are collected, if the property on which 8 the adjustment was granted is still owned by the claimant. 9 However, if the claim was incorrectly allowed due to a clerical 10 error, error by a person other than the claimant, or an 11 innocent misrepresentation by or on behalf of the claimant, the 12 proceedings to collect the tax shall be limited to the taxes 13 due and payable in the twelve months immediately preceding the 14 disallowance. 15 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 16 1. A claimant shall expressly waive any right to 17 confidentiality relating to all income tax information 18 obtainable through the department of revenue including all 19 information covered by sections 422.20 and 422.72. This waiver 20 shall apply to information available to the county assessor who 21 shall hold the information confidential except that it may be 22 used as evidence to disallow the assessed value adjustment. 23 2. The department of revenue may release information 24 pertaining to a person’s eligibility or claim for or receipt of 25 the assessed value adjustment to an employee of the department 26 of inspections and appeals in the employee’s official conduct 27 of an audit or investigation. 28 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 29 A person who makes a false affidavit for the purpose of 30 obtaining an adjustment in assessed value provided for in 31 this chapter or who knowingly receives the adjustment without 32 being legally entitled to it or makes claim for the adjustment 33 in more than one county in the state without being legally 34 entitled to it is guilty of a fraudulent practice. The claim 35 -4- LSB 1756XS (1) 86 md/sc 4/ 6

S.F. 83 for adjustment shall be disallowed in full and property tax 1 shall be levied on the disallowed adjustment at the rate that 2 would have been levied but for the adjustment. The director of 3 revenue shall send a notice of disallowance of the claim. 4 Sec. 11. NEW SECTION . 425B.11 Notices. 5 Section 423.39, subsection 1, shall apply to all notices 6 under this chapter. 7 Sec. 12. NEW SECTION . 425B.12 Appeals. 8 Any person aggrieved by an act or decision of the director 9 of revenue or the department of revenue under this chapter 10 shall have the same rights of appeal and review as provided in 11 sections 421.1 and 423.38 and the rules of the department of 12 revenue. 13 Sec. 13. NEW SECTION . 425B.13 Disallowance of certain 14 claims. 15 A claim for adjustment shall be disallowed if the department 16 finds that the claimant or a person of the claimant’s household 17 received title to the homestead primarily for the purpose of 18 receiving benefits under this chapter. 19 Sec. 14. NEW SECTION . 425B.14 Rules. 20 The director of revenue shall adopt rules in accordance with 21 chapter 17A for the interpretation and administration of this 22 chapter, including rules to prevent and disallow duplication of 23 benefits and to prevent any unreasonable hardship or advantage 24 to any person. 25 Sec. 15. APPLICABILITY. This Act applies retroactively to 26 January 1, 2015, for assessment years beginning on or after 27 that date and to the filing of claims on or after January 1, 28 2016, for adjustments of assessed values. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill provides for an adjustment in the assessed value 33 of a homestead, as defined in the bill, if the owner has owned 34 the homestead for at least 10 years and is a person who is 70 or 35 -5- LSB 1756XS (1) 86 md/sc 5/ 6

S.F. 83 older and who has household earned income of less than $12,000 1 per year. If the qualifications established in the bill are 2 met, the assessed value of the homestead upon which property 3 taxes are levied in a fiscal year is the same assessed value as 4 for the previous fiscal year. The bill specifies that assessed 5 value is that value prior to any rollback being applied. 6 The bill further provides that if the amount of property 7 taxes levied against the adjusted assessment exceeds the amount 8 of property taxes levied against the property in the fiscal 9 year for which taxes were first levied against an adjusted 10 assessment under the bill, the county treasurer is required to 11 subtract such difference from the amount due. 12 The bill provides that a person who makes a false affidavit 13 for the purpose of obtaining an adjustment, knowingly receives 14 the adjustment without being legally entitled to it, or makes 15 claim for the adjustment in more than one county without being 16 legally entitled to it is guilty of a fraudulent practice and 17 is subject to a criminal penalty. 18 The bill applies retroactively to January 1, 2015, for 19 assessment years beginning on or after that date and applies to 20 claims filed on or after January 1, 2016, for the adjustments. 21 -6- LSB 1756XS (1) 86 md/sc 6/ 6