House File 250 - Introduced HOUSE FILE 250 BY CARLIN , McKEAN , and FISHER A BILL FOR An Act providing a property assessment adjustment and a 1 property tax adjustment for certain property of persons 2 who have attained the age of sixty-five, applying income 3 limitations, providing a penalty, and including retroactive 4 and other applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2090YH (3) 87 md/sc

H.F. 250 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 sixty-five 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. “Homestead” means the same as defined in section 425.11. 24 6. “Household” , “household income” , and “income” mean the 25 same as defined in section 425.17. 26 7. “Owned” means owned by an owner as defined in section 27 425.11. 28 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 29 The right to file a claim for an assessed value adjustment 30 under this chapter may be exercised by the claimant or on 31 behalf of a claimant by the claimant’s legal guardian, spouse, 32 or attorney, or by the executor or administrator of the 33 claimant’s estate. If a claimant dies after having filed a 34 claim for adjustment, the amount of any adjustment shall be 35 -1- LSB 2090YH (3) 87 md/sc 1/ 6

H.F. 250 made as if the claimant had not died. 1 Sec. 4. NEW SECTION . 425B.4 Claim for adjustment. 2 1. Subject to the limitations provided in this chapter, 3 a claimant may annually claim an adjustment of the assessed 4 value of the claimant’s homestead for the base assessment year. 5 The adjustment claim shall be filed with the county assessor 6 between January 1 and February 15 immediately following 7 the close of the base assessment year. However, in case of 8 sickness, absence, or other disability of the claimant, or 9 if in the judgment of the county assessor good cause exists, 10 the county assessor may extend the time for filing a claim for 11 adjustment through June 30 of the same calendar year. 12 2. The county assessor shall notify the department of 13 revenue by March 1 of the number of claimants receiving 14 adjustments under this chapter and the total amount of the 15 reduced assessed values for the base assessment year. 16 Sec. 5. NEW SECTION . 425B.5 Adjustment —— maximum tax 17 dollars levied. 18 1. If the income qualification specified in subsection 2 19 is met, the assessed value of the claimant’s homestead in the 20 base assessment year shall be adjusted, but not increased, 21 to equal the assessed value, as such assessed value may have 22 been adjusted pursuant to this chapter, in the assessment year 23 preceding the base assessment year. If the amount of property 24 taxes levied against the adjusted assessment exceeds the amount 25 of property taxes levied against the property in the fiscal 26 year for which taxes were first levied against an adjusted 27 assessment under this chapter, the treasurer shall subtract the 28 difference from the amount due. The adjustments to assessed 29 value and to the amount of property taxes levied shall not be 30 construed to be exemptions or credits within the meaning of 31 section 25B.7. 32 2. A claimant is eligible for an adjustment to the assessed 33 value of the claimant’s homestead if the claimant’s household 34 income is less than thirty thousand dollars in the base year. 35 -2- LSB 2090YH (3) 87 md/sc 2/ 6

H.F. 250 Sec. 6. NEW SECTION . 425B.6 Administration. 1 The director of revenue shall make available suitable forms 2 for claiming an assessed value adjustment with instructions 3 for claimants. Each assessor and county treasurer shall make 4 available the forms and instructions. The claim shall be in a 5 form as the director may prescribe. 6 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 7 1. Every claimant shall give the department of revenue, in 8 support of the claim, reasonable proof of: 9 a. Age. 10 b. Changes of homestead. 11 c. Size and nature of the property claimed as the homestead. 12 d. Household income. 13 2. The director of revenue may require any additional proof 14 necessary to support a claim. 15 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 16 If on the audit of a claim for adjustment under this 17 chapter, the director of revenue determines the claim is not 18 allowable, the director shall notify the claimant of the denial 19 and the reasons for it. The director shall not deny a claim 20 after three years from October 31 of the year in which the 21 claim was filed. The director shall give notification to the 22 county assessor of the denial of the claim and the county 23 assessor shall instruct the county treasurer to proceed to 24 collect the tax that would have been levied on the applicable 25 adjusted assessed value in the same manner as other property 26 taxes due and payable are collected, if the property on which 27 the adjustment was granted is still owned by the claimant. 28 However, if the claim was incorrectly allowed due to a clerical 29 error, error by a person other than the claimant, or an 30 innocent misrepresentation by or on behalf of the claimant, the 31 proceedings to collect the tax shall be limited to the taxes 32 due and payable in the twelve months immediately preceding the 33 disallowance. 34 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 35 -3- LSB 2090YH (3) 87 md/sc 3/ 6

H.F. 250 1. A claimant shall expressly waive any right to 1 confidentiality relating to all income tax information 2 obtainable through the department of revenue including all 3 information covered by sections 422.20 and 422.72. This waiver 4 shall apply to information available to the county assessor who 5 shall hold the information confidential except that it may be 6 used as evidence to disallow the assessed value adjustment. 7 2. The department of revenue may release information 8 pertaining to a person’s eligibility or claim for or receipt of 9 the assessed value adjustment to an employee of the department 10 of inspections and appeals in the employee’s official conduct 11 of an audit or investigation. 12 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 13 A person who makes a false affidavit for the purpose of 14 obtaining an adjustment in assessed value provided for in 15 this chapter or who knowingly receives the adjustment without 16 being legally entitled to it or makes claim for the adjustment 17 in more than one county in the state without being legally 18 entitled to it is guilty of a fraudulent practice. The claim 19 for adjustment shall be disallowed in full and property tax 20 shall be levied on the disallowed adjustment at the rate that 21 would have been levied but for the adjustment. The director of 22 revenue shall send a notice of disallowance of the claim. 23 Sec. 11. NEW SECTION . 425B.11 Notices, appeals, and 24 rules. 25 To the extent not otherwise contrary to the provisions of 26 this chapter: 27 1. Section 423.39, subsection 1, shall apply to all notices 28 under this chapter. 29 2. Any person aggrieved by an act or decision of the 30 director of revenue or the department of revenue under this 31 chapter shall have the same rights of appeal and review as 32 provided in section 423.38 and the rules of the department of 33 revenue. 34 3. A claim for adjustment shall be disallowed if the 35 -4- LSB 2090YH (3) 87 md/sc 4/ 6

H.F. 250 department finds that the claimant or a person of the 1 claimant’s household received title to the homestead primarily 2 for the purpose of receiving benefits under this chapter. 3 4. The department of revenue shall adopt rules pursuant to 4 chapter 17A to administer and interpret this chapter, including 5 rules to prevent and disallow duplication of benefits and to 6 prevent any unreasonable hardship or advantage to any person. 7 Sec. 12. APPLICABILITY. This Act applies retroactively to 8 January 1, 2017, for assessment years beginning on or after 9 that date and to the filing of claims on or after January 1, 10 2018, for adjustments of assessed values. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill provides for an adjustment in the assessed value of 15 a homestead, as defined in the bill, if the owner is a person 16 who is 65 or older and who has household income of less than 17 $30,000 per year. If the qualifications established in the 18 bill are met, the assessed value of the homestead upon which 19 property taxes are levied in a fiscal year is the same assessed 20 value as for the previous fiscal year. The bill specifies that 21 the assessed value is that value prior to any rollback being 22 applied. 23 The bill further provides that if the amount of property 24 taxes levied against the adjusted assessment exceeds the amount 25 of property taxes levied against the property in the fiscal 26 year for which taxes were first levied against an adjusted 27 assessment under the bill, the county treasurer is required to 28 subtract such difference from the amount due. The adjustments 29 to assessed value and to the amount of property taxes levied 30 under the bill shall not be construed to be exemptions or 31 credits within the meaning of Code section 25B.7. 32 The bill provides that a person who makes a false affidavit 33 for the purpose of obtaining an adjustment, knowingly receives 34 the adjustment without being legally entitled to it, or makes 35 -5- LSB 2090YH (3) 87 md/sc 5/ 6