House File 2611 - Introduced HOUSE FILE 2611 BY HALL A BILL FOR An Act providing a property assessment adjustment for certain 1 persons, applying income and age limitations, providing a 2 penalty, and including retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6250HH (2) 88 md/jh
H.F. 2611 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 and the 5 amount of property taxes due and payable. 6 Sec. 2. NEW SECTION . 425B.2 Definitions. 7 As used in this chapter, unless the context otherwise 8 requires: 9 1. “Assessed value” means the actual value prior to any 10 adjustment pursuant to section 441.21, subsection 4. 11 2. “Base assessment year” means the assessment year 12 beginning in the base year. 13 3. “Base year” means the calendar year last ending before 14 the claim is filed. 15 4. “Claimant” means a person filing a claim for adjustment 16 under this chapter who has attained the age of sixty-five years 17 on or before December 31 of the base year and is domiciled in 18 this state at the time the claim is filed or at the time of the 19 person’s death in the case of a claim filed by the executor or 20 administrator of the claimant’s estate. 21 5. “Homestead” means the same as defined in section 425.17. 22 6. “Household” , “household income” , and “income” mean the 23 same as those terms are defined in section 425.17. 24 7. “Owned” means owned by an owner as defined in section 25 425.11. 26 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 27 The right to file a claim for an assessed value adjustment 28 under this chapter may be exercised by the claimant or on 29 behalf of a claimant by the claimant’s legal guardian, spouse, 30 or attorney, or by the executor or administrator of the 31 claimant’s estate. If a claimant dies after having filed a 32 claim for adjustment, the amount of any adjustment shall be 33 made as if the claimant had not died. 34 Sec. 4. NEW SECTION . 425B.4 Claim for adjustment. 35 -1- LSB 6250HH (2) 88 md/jh 1/ 5
H.F. 2611 1. Subject to the limitations provided in this chapter, 1 a claimant may annually claim an adjustment of the assessed 2 value of the claimant’s homestead for the base assessment year. 3 The adjustment claim shall be filed with the county assessor 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 7 if in the judgment of the county assessor good cause exists, 8 the county assessor may extend the time for filing a claim for 9 adjustment through June 30 of the same calendar year. 10 2. The county assessor shall notify the department of 11 revenue by March 1 of the number of claimants receiving 12 adjustments under this chapter and the total amount of the 13 reduced assessed values for the base assessment year. 14 Sec. 5. NEW SECTION . 425B.5 Qualification and adjustment 15 —— maximum tax dollars levied. 16 1. If the household income requirement of subsection 2 is 17 met, the assessed value of the claimant’s homestead in the 18 base assessment year shall be adjusted, but not increased, 19 to equal the assessed value, as such assessed value may have 20 been adjusted pursuant to this chapter, in the assessment year 21 preceding the base assessment year. If the amount of property 22 taxes levied against the adjusted assessment exceed the amount 23 of property taxes levied against the property in the fiscal 24 year for which taxes were first levied against an adjusted 25 assessment under this chapter, the treasurer shall subtract the 26 difference from the amount due. 27 2. A claimant is eligible for the adjustments under 28 subsection 1 if the claimant’s household income is thirty 29 thousand dollars or less in the base year. 30 Sec. 6. NEW SECTION . 425B.6 Administration. 31 The director of revenue shall make available suitable forms 32 for claiming an assessed value adjustment with instructions 33 for claimants. Each assessor and county treasurer shall make 34 available the forms and instructions. The claim shall be in a 35 -2- LSB 6250HH (2) 88 md/jh 2/ 5
H.F. 2611 form as the director may prescribe. 1 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 2 1. Every claimant shall give the department of revenue, in 3 support of the claim, reasonable proof of: 4 a. Age. 5 b. Changes of homestead. 6 c. Household membership. 7 d. Household income. 8 e. Size and nature of the property claimed as the homestead. 9 2. The director of revenue may require any additional proof 10 necessary to support a claim. 11 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 12 If on the audit of a claim for adjustment under this chapter, 13 the director of revenue determines the claim is not allowable, 14 the director shall notify the claimant of the denial and the 15 reasons for it. The director shall not deny a claim after 16 three years from October 31 of the year in which the claim was 17 filed. The director shall give notification to the county 18 assessor of the denial of the claim and the county assessor 19 shall instruct the county treasurer to proceed to collect the 20 tax that would have been levied on the applicable adjusted 21 assessed value in the same manner as other property taxes 22 due and payable are collected, if the property on which the 23 adjustment was granted is still owned by the claimant. 24 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 25 1. A claimant shall expressly waive any right to 26 confidentiality relating to all income tax information 27 obtainable through the department of revenue, including all 28 information covered by sections 422.20 and 422.72. This waiver 29 shall apply to information available to the county assessor who 30 shall hold the information confidential except that it may be 31 used as evidence to disallow the assessed value adjustment. 32 2. The department of revenue may release information 33 pertaining to a person’s eligibility or claim for or receipt of 34 the assessed value adjustment to an employee of the department 35 -3- LSB 6250HH (2) 88 md/jh 3/ 5
H.F. 2611 of inspections and appeals in the employee’s official conduct 1 of an audit or investigation. 2 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 3 A person who makes a false affidavit for the purpose of 4 obtaining an adjustment in assessed value provided for in 5 this chapter or who knowingly receives the adjustment without 6 being legally entitled to it or makes claim for the adjustment 7 in more than one county in the state without being legally 8 entitled to it is guilty of a fraudulent practice. The claim 9 for adjustment shall be disallowed in full and property tax 10 shall be levied on the disallowed adjustment at the rate that 11 would have been levied but for the adjustment. The director of 12 revenue shall send a notice of disallowance of the claim. 13 Sec. 11. NEW SECTION . 425B.11 Notices, appeals, and rules. 14 To the extent not otherwise contrary to the provisions of 15 this chapter: 16 1. Section 423.39, subsection 1, shall apply to all notices 17 under this chapter. 18 2. Any person aggrieved by an act or decision of the 19 director of revenue or the department of revenue under this 20 chapter shall have the same rights of appeal and review as 21 provided in section 423.38 and the rules of the department of 22 revenue. 23 3. A claim for adjustment shall be disallowed if the 24 department finds that the claimant or a person of the 25 claimant’s household received title to the homestead primarily 26 for the purpose of receiving benefits under this chapter. 27 4. The department of revenue shall adopt rules pursuant to 28 chapter 17A to administer and interpret this chapter, including 29 rules to prevent and disallow duplication of benefits and to 30 prevent any unreasonable hardship or advantage to any person. 31 Sec. 12. RETROACTIVE APPLICABILITY. This Act applies 32 retroactively to January 1, 2020, for assessment years 33 beginning on or after that date and to the filing of claims on 34 or after January 1, 2021, for adjustments of assessed values. 35 -4- LSB 6250HH (2) 88 md/jh 4/ 5
H.F. 2611 EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill allows adjustments to certain homesteads based on 4 age and income limits. 5 The bill provides for an adjustment in the assessed value 6 of a homestead if the owner is a person who is 65 or older 7 and whose household income is $30,000 or less. If those 8 qualifications are met, the assessed value of the homestead 9 upon which property taxes are levied in a fiscal year is the 10 same assessed value as for the previous fiscal year. The bill 11 also authorizes an adjustment of the total property taxes due 12 and payable on the homestead if the amount due exceeds the 13 amount due in the fiscal year for which the homestead’s value 14 was first adjusted under the bill. Assessed value is that 15 value prior to any rollback being applied. 16 The bill provides that a person who makes a false affidavit 17 for the purpose of obtaining an adjustment, knowingly receives 18 the adjustment without being legally entitled to it, or makes 19 claim for the adjustment in more than one county without being 20 legally entitled to it is guilty of a fraudulent practice and 21 is subject to a criminal penalty. 22 The bill applies retroactively to January 1, 2020, for 23 assessment years beginning on or after that date and applies to 24 claims filed on or after January 1, 2021, for the adjustments. 25 -5- LSB 6250HH (2) 88 md/jh 5/ 5