Senate File 2266 - Introduced SENATE FILE 2266 BY CARLIN A BILL FOR An Act establishing a homestead adjustment property tax credit 1 for certain property of persons who have attained the age 2 of sixty-five or who are totally disabled, applying income 3 limitations, providing a penalty, making appropriations, and 4 including retroactive and other applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5832XS (6) 87 md/jh
S.F. 2266 Section 1. NEW SECTION . 425B.1 Homestead adjustment credit 1 —— purpose. 2 Persons who own their homesteads and who meet the 3 qualifications provided in this chapter are eligible for a 4 homestead adjustment credit, as provided in this chapter, to 5 prevent an increase in the amount of property taxes owed. 6 Sec. 2. NEW SECTION . 425B.2 Definitions. 7 As used in this chapter, unless the context otherwise 8 requires: 9 1. “Base assessment year” means the assessment year 10 beginning in the base year. 11 2. “Base year” means the calendar year last ending before 12 the claim is filed. 13 3. “Claimant” means a person filing a claim for a credit 14 under this chapter who has either attained the age of 15 sixty-five years on or before December 31 of the base year or 16 is totally disabled as defined in section 425.17, and who is 17 domiciled in this state at the time the claim is filed or at the 18 time of the person’s death in the case of a claim filed by the 19 executor or administrator of the claimant’s estate. 20 4. “Homestead” means the same as defined in section 425.11. 21 5. “Household” , “household income” , and “income” mean the 22 same as defined in section 425.17. 23 6. “Owned” means owned by an owner as defined in section 24 425.11. 25 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 26 The right to file a claim for a homestead adjustment 27 credit under this chapter may be exercised by the claimant 28 or on behalf of a claimant by the claimant’s legal guardian, 29 spouse, or attorney, or by the executor or administrator of the 30 claimant’s estate. If a claimant dies after having filed a 31 claim for a credit, the amount of the credit shall be made as if 32 the claimant had not died. Only one claimant per household per 33 fiscal year shall be entitled to a credit under this chapter. 34 Sec. 4. NEW SECTION . 425B.4 Claim for credit. 35 -1- LSB 5832XS (6) 87 md/jh 1/ 7
S.F. 2266 1. Subject to the limitations provided in this chapter, a 1 claimant may annually claim a homestead adjustment credit for 2 the claimant’s homestead for the base assessment year. The 3 claim shall be filed with the county assessor for approval 4 between January 1 and February 15 immediately following 5 the close of the base assessment year. However, in case of 6 sickness, absence, or other disability of the claimant, or if 7 in the judgment of the county assessor good cause exists, the 8 county assessor may extend the time for filing a claim through 9 June 30 of the same calendar year. 10 2. The assessor shall remit the list of approved eligible 11 claims to the county auditor by July 6 of each year. All 12 eligible claims for credit shall be certified on or before 13 August 1, in each year, by the county auditor to the county 14 treasurer, which certificates shall list the total number of 15 homestead adjustment credits in the county and the total amount 16 of all such credits, listed by taxing district in the county. 17 The county treasurer shall certify to the department of revenue 18 the total amount of dollars, listed by taxing district in the 19 county, due for homestead adjustment credits claimed. 20 Sec. 5. NEW SECTION . 425B.5 Credit amount —— income 21 limitations. 22 1. If the income qualification specified in subsection 2 is 23 met, the amount of the claimant’s homestead adjustment credit 24 shall be an amount equal to the amount of property taxes levied 25 against the homestead for the base assessment year following 26 application of all applicable property tax credits other than 27 the homestead adjustment credit minus the amount of property 28 taxes levied against the homestead for the assessment year 29 preceding the base assessment year following application of all 30 property tax credits. 31 2. A claimant is eligible for a homestead adjustment 32 credit against taxes levied on the claimant’s homestead if 33 the claimant’s household income is less than thirty thousand 34 dollars in the base year. 35 -2- LSB 5832XS (6) 87 md/jh 2/ 7
S.F. 2266 Sec. 6. NEW SECTION . 425B.6 Administration. 1 1. The director of revenue shall make available suitable 2 forms for claiming a homestead adjustment credit with 3 instructions for claimants. Each assessor and county treasurer 4 shall make available the forms and instructions. The claim 5 shall be in a form as the director may prescribe. 6 2. The homestead adjustment credit fund is created within 7 the state treasury under the control of the department of 8 revenue. There is appropriated annually from the general 9 fund of the state to the department of revenue for deposit 10 in the homestead adjustment credit fund an amount sufficient 11 to provide all credits authorized under this chapter. The 12 director of the department of administrative services shall 13 issue warrants on the homestead adjustment credit fund payable 14 to the county treasurers of the several counties of the state 15 under this chapter. The amount due each county shall be paid 16 in two payments on November 15 and March 15 of each fiscal 17 year, drawn upon warrants payable to the respective county 18 treasurers. The two payments shall be as nearly equal as 19 possible. 20 3. Annually, the department of revenue shall certify to 21 the county auditor of each county the credit and its amount 22 in dollars. Each county auditor shall then enter the credit 23 against the tax levied on each eligible homestead in each 24 county payable during the ensuing year, designating on the 25 tax lists the credit as being from the homestead adjustment 26 credit fund, and credit shall then be given to the several 27 taxing districts in which eligible homesteads are located in 28 an amount equal to the credits allowed on the taxes of the 29 homesteads. The amount of credits shall be apportioned by each 30 county treasurer to the several taxing districts as provided 31 by law, in the same manner as though the amount of the credit 32 had been paid by the owners of the homesteads. However, the 33 several taxing districts shall not draw the funds so credited 34 until after the semiannual allocations have been received by 35 -3- LSB 5832XS (6) 87 md/jh 3/ 7
S.F. 2266 the county treasurer, as provided in this chapter. Each county 1 treasurer shall show on each tax receipt the amount of credit 2 received from the homestead adjustment credit fund. 3 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 4 1. Every claimant shall give the department of revenue, in 5 support of the claim, reasonable proof of: 6 a. Age and total disability, if any. 7 b. Changes of homestead. 8 c. Size and nature of the property claimed as the homestead. 9 d. Household income. 10 2. The director of revenue may require any additional proof 11 necessary to support a claim. 12 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 13 If on the audit of a claim for a homestead adjustment credit 14 under this chapter, the director of revenue determines the 15 claim is not allowable, the director shall notify the claimant 16 of the denial and the reasons for it. The director shall 17 not deny a claim after three years from October 31 of the 18 year in which the claim was filed. The director shall give 19 notification to the county assessor of the denial of the claim 20 and the county assessor shall instruct the county treasurer to 21 proceed to collect the tax that would have been levied on the 22 applicable adjusted assessed value in the same manner as other 23 property taxes due and payable are collected, if the property 24 on which the credit was granted is still owned by the claimant. 25 However, if the claim was incorrectly allowed due to a clerical 26 error, error by a person other than the claimant, or an 27 innocent misrepresentation by or on behalf of the claimant, the 28 proceedings to collect the tax shall be limited to the taxes 29 due and payable in the twelve months immediately preceding the 30 disallowance. 31 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 32 1. A claimant shall expressly waive any right to 33 confidentiality relating to all income tax information 34 obtainable through the department of revenue including all 35 -4- LSB 5832XS (6) 87 md/jh 4/ 7
S.F. 2266 information covered by sections 422.20 and 422.72. This waiver 1 shall apply to information available to the county assessor who 2 shall hold the information confidential except that it may be 3 used as evidence to disallow the homestead adjustment credit. 4 2. The department of revenue may release information 5 pertaining to a person’s eligibility or claim for or receipt 6 of the credit to an employee of the department of inspections 7 and appeals in the employee’s official conduct of an audit or 8 investigation. 9 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 10 A person who makes a false affidavit for the purpose of 11 obtaining a homestead adjustment credit provided for in this 12 chapter or who knowingly receives the credit without being 13 legally entitled to it or makes claim for the credit in more 14 than one county in the state without being legally entitled 15 to it is guilty of a fraudulent practice. The claim for 16 credit shall be disallowed in full and if the claim has been 17 paid, the amount shall be recovered in the manner provided in 18 section 425B.8. The director of revenue shall send a notice 19 of disallowance of the claim. 20 Sec. 11. NEW SECTION . 425B.11 Notices, appeals, and 21 rules. 22 To the extent not otherwise contrary to the provisions of 23 this chapter: 24 1. Section 423.39, subsection 1, shall apply to all notices 25 under this chapter. 26 2. Any person aggrieved by an act or decision of the 27 director of revenue or the department of revenue under this 28 chapter shall have the same rights of appeal and review as 29 provided in section 423.38 and the rules of the department of 30 revenue. 31 3. A claim for credit shall be disallowed if the department 32 finds that the claimant or a person of the claimant’s household 33 received title to the homestead primarily for the purpose of 34 receiving benefits under this chapter. 35 -5- LSB 5832XS (6) 87 md/jh 5/ 7
S.F. 2266 4. The department of revenue shall adopt rules pursuant to 1 chapter 17A to administer and interpret this chapter, including 2 rules to prevent and disallow duplication of benefits and to 3 prevent any unreasonable hardship or advantage to any person. 4 Sec. 12. APPLICABILITY. This Act applies retroactively to 5 January 1, 2018, for assessment years beginning on or after 6 that date and to the filing of claims for homestead adjustment 7 credits on or after January 1, 2019. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill establishes a homestead adjustment credit for an 12 owner of a homestead if the owner is a person who is either 65 13 or older or totally disabled, and who has household income of 14 less than $30,000 per year. If the qualifications established 15 in the bill are met, the amount of the homestead adjustment 16 credit shall be an amount equal to the amount of property taxes 17 levied against the homestead for the base assessment year, as 18 defined in the bill, following application of all applicable 19 property tax credits other than the homestead adjustment credit 20 minus the amount of property taxes levied against the homestead 21 for the assessment year preceding the base assessment year 22 following application of all property tax credits. Only one 23 claimant per household per fiscal year may receive the credit 24 under the bill. 25 The bill annually appropriates from the general fund of the 26 state to the department of revenue for deposit in the homestead 27 adjustment credit fund, created in the bill, an amount 28 sufficient to fund all of the homestead adjustment credits for 29 the fiscal year. 30 The bill provides that a person who makes a false affidavit 31 for the purpose of obtaining a credit, knowingly receives a 32 credit without being legally entitled to it, or makes claim for 33 a credit in more than one county without being legally entitled 34 to it is guilty of a fraudulent practice and is subject to a 35 -6- LSB 5832XS (6) 87 md/jh 6/ 7
S.F. 2266 criminal penalty. 1 The bill applies retroactively to January 1, 2018, for 2 assessment years beginning on or after that date and applies to 3 claims filed on or after January 1, 2019, for the credit. 4 -7- LSB 5832XS (6) 87 md/jh 7/ 7