Senate File 152 - Introduced SENATE FILE 152 BY ZAUN A BILL FOR An Act providing a property assessment adjustment for certain 1 property of persons who have attained the age of sixty-five, 2 providing a penalty, and including retroactive and other 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1631XS (3) 87 md/sc
S.F. 152 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 base year 24 and so much of the land surrounding it, including one or more 25 contiguous lots or tracts of land, as is reasonably necessary 26 for use of the dwelling as a home, and may consist of a part 27 of a multidwelling or multipurpose building and a part of the 28 land upon which it is built. It does not include personal 29 property except that a manufactured or mobile home may be 30 a homestead. Any dwelling or a part of a multidwelling or 31 multipurpose building which is exempt from taxation does not 32 qualify as a homestead under this chapter. A homestead must 33 be located in this state. When a person is confined in a 34 nursing home, extended-care facility, or hospital, the person 35 -1- LSB 1631XS (3) 87 md/sc 1/ 5
S.F. 152 shall be considered as occupying or living in the person’s 1 homestead if the person is the owner of the homestead and the 2 person maintains the homestead and does not lease, rent, or 3 otherwise receive profits from other persons for the use of the 4 homestead. 5 6. “Owned” means owned by an owner as defined in section 6 425.11. 7 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 8 The right to file a claim for an assessed value adjustment 9 under this chapter may be exercised by the claimant or on 10 behalf of a claimant by the claimant’s legal guardian, spouse, 11 or attorney, or by the executor or administrator of the 12 claimant’s estate. If a claimant dies after having filed a 13 claim for adjustment, the amount of any adjustment shall be 14 made as if the claimant had not died. 15 Sec. 4. NEW SECTION . 425B.4 Claim for adjustment. 16 1. Subject to the limitations provided in this chapter, 17 a claimant may annually claim an adjustment of the assessed 18 value of the claimant’s homestead for the base assessment year. 19 The adjustment claim shall be filed with the county assessor 20 between January 1 and February 15 immediately following 21 the close of the base assessment year. However, in case of 22 sickness, absence, or other disability of the claimant, or 23 if in the judgment of the county assessor good cause exists, 24 the county assessor may extend the time for filing a claim for 25 adjustment through June 30 of the same calendar year. 26 2. The county assessor shall notify the department of 27 revenue by March 1 of the number of claimants receiving 28 adjustments under this chapter and the total amount of the 29 reduced assessed values for the base assessment year. 30 Sec. 5. NEW SECTION . 425B.5 Adjustment —— maximum tax 31 dollars levied. 32 If the claimant’s assessed value in the base assessment year 33 prior to an adjustment under this chapter is less than one 34 hundred fifty thousand dollars or if the claimant’s assessed 35 -2- LSB 1631XS (3) 87 md/sc 2/ 5
S.F. 152 value for the assessment year preceding the base assessment 1 year, if adjusted under this chapter, is less than one hundred 2 fifty thousand dollars, 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 Sec. 6. NEW SECTION . 425B.6 Administration. 13 The director of revenue shall make available suitable forms 14 for claiming an assessed value adjustment with instructions 15 for claimants. Each assessor and county treasurer shall make 16 available the forms and instructions. The claim shall be in a 17 form as the director may prescribe. 18 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 19 1. Every claimant shall give the department of revenue, in 20 support of the claim, reasonable proof of: 21 a. Age. 22 b. Changes of homestead. 23 c. Size and nature of the property claimed as the homestead. 24 2. The director of revenue may require any additional proof 25 necessary to support a claim. 26 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 27 If on the audit of a claim for adjustment under this chapter, 28 the director of revenue determines the claim is not allowable, 29 the director shall notify the claimant of the denial and the 30 reasons for it. The director shall not deny a claim after 31 three years from October 31 of the year in which the claim was 32 filed. The director shall give notification to the county 33 assessor of the denial of the claim and the county assessor 34 shall instruct the county treasurer to proceed to collect the 35 -3- LSB 1631XS (3) 87 md/sc 3/ 5
S.F. 152 tax that would have been levied on the applicable adjusted 1 assessed value in the same manner as other property taxes 2 due and payable are collected, if the property on which the 3 adjustment was granted is still owned by the claimant. 4 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 5 1. A claimant shall expressly waive any right to 6 confidentiality relating to all information available to the 7 county assessor who shall hold the information confidential 8 except that it may be used as evidence to disallow the assessed 9 value adjustment. 10 2. The department of revenue may release information 11 pertaining to a person’s eligibility or claim for or receipt of 12 the assessed value adjustment to an employee of the department 13 of inspections and appeals in the employee’s official conduct 14 of an audit or investigation. 15 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 16 A person who makes a false affidavit for the purpose of 17 obtaining an adjustment in assessed value provided for in 18 this chapter or who knowingly receives the adjustment without 19 being legally entitled to it or makes claim for the adjustment 20 in more than one county in the state without being legally 21 entitled to it is guilty of a fraudulent practice. The claim 22 for adjustment shall be disallowed in full and property tax 23 shall be levied on the disallowed adjustment at the rate that 24 would have been levied but for the adjustment. The director of 25 revenue shall send a notice of disallowance of the claim. 26 Sec. 11. NEW SECTION . 425B.11 Notices, appeals, and 27 rules. 28 To the extent not otherwise contrary to the provisions of 29 this chapter: 30 1. Section 423.39, subsection 1, shall apply to all notices 31 under this chapter. 32 2. Any person aggrieved by an act or decision of the 33 director of revenue or the department of revenue under this 34 chapter shall have the same rights of appeal and review as 35 -4- LSB 1631XS (3) 87 md/sc 4/ 5
S.F. 152 provided in section 423.38 and the rules of the department of 1 revenue. 2 3. A claim for adjustment shall be disallowed if the 3 department finds that the claimant or a person of the 4 claimant’s household received title to the homestead primarily 5 for the purpose of receiving benefits under this chapter. 6 4. The department of revenue shall adopt rules pursuant to 7 chapter 17A to administer and interpret this chapter, including 8 rules to prevent and disallow duplication of benefits and to 9 prevent any unreasonable hardship or advantage to any person. 10 Sec. 12. APPLICABILITY. This Act applies retroactively to 11 January 1, 2017, for assessment years beginning on or after 12 that date and to the filing of claims on or after January 1, 13 2018, for adjustments of assessed values. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill provides for an adjustment in the assessed value 18 of a homestead, as defined in the bill, if the owner is a 19 person who is 65 or older. The bill also limits the adjustment 20 in assessed value to homesteads that have certain assessed 21 valuations of less than $150,000. If those qualifications are 22 met, the assessed value of the homestead upon which property 23 taxes are levied in a fiscal year is the same assessed value as 24 for the previous fiscal year. The bill specifies that assessed 25 value is the actual value prior to any rollback being applied. 26 The bill provides that a person who makes a false affidavit 27 for the purpose of obtaining an adjustment, knowingly receives 28 the adjustment without being legally entitled to it, or makes 29 claim for the adjustment in more than one county without being 30 legally entitled to it is guilty of a fraudulent practice and 31 is subject to a criminal penalty. 32 The bill applies retroactively to January 1, 2017, for 33 assessment years beginning on or after that date and applies to 34 claims filed on or after January 1, 2018, for the adjustments. 35 -5- LSB 1631XS (3) 87 md/sc 5/ 5