H.F. 770 Section 1. Section 331.402, subsection 2, Code 2019, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . j. Authorize, by ordinance, the abatement of 3 property taxes under section 427.4. 4 Sec. 2. Section 364.2, Code 2019, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 7. A city may, by ordinance, authorize the 7 abatement of property taxes under section 427.4. 8 Sec. 3. Section 420.207, Code 2019, is amended to read as 9 follows: 10 420.207 Taxation in general. 11 Sections 426A.11 through 426A.15 , 427.1 , 427.4, 427.8 12 through 427.11 , 428.4 , 428.20 , 428.22 , 428.23 , 437.1 , 437.3 , 13 441.21 , 443.1 through 443.3 , 444.2 through 444.4 , and 447.9 14 through 447.13 , so far as applicable, apply to cities acting 15 under special charters. 16 Sec. 4. NEW SECTION . 427.4 Elderly resident local option 17 abatement. 18 1. Subject to the limitations of this section, the governing 19 body of a city may, by ordinance, provide for the abatement 20 of a portion of property taxes due on the homestead owned by 21 a claimant within the city and a county may, by ordinance, 22 provide for the abatement of a portion of property taxes due on 23 the homestead owned by a claimant in the unincorporated areas 24 of the county. 25 2. For purposes of this section, unless the context 26 otherwise requires: 27 a. “Abate” or “abatement” means to cancel in their entirety 28 all applicable amounts. 29 b. “Base year” means the calendar year last ending before 30 the claim is filed. 31 c. “Claimant” means the owner of a homestead filing a 32 claim for abatement under an ordinance adopted pursuant to 33 this section who has attained the age of seventy years on or 34 before December 31 of the base year and is domiciled in the 35 -1- LSB 2563YH (3) 88 md/jh 1/ 5

H.F. 770 applicable city or county at the time the claim is filed or at 1 the time of the person’s death in the case of a claim filed 2 by the executor or administrator of the claimant’s estate. 3 “Claimant” includes a vendee in possession under a contract for 4 deed and may include one or more joint tenants or tenants in 5 common. “Claimant” includes the surviving spouse of a claimant 6 who previously received an abatement of property taxes due 7 on the homestead under this section if all other eligibility 8 requirements are met. 9 d. “Homestead” means the same as defined in section 425.11. 10 e. “Household” means a claimant and the claimant’s spouse 11 if living with the claimant at any time during the base 12 year. “Living with” refers to domicile and does not include a 13 temporary visit. 14 f. “Household income” means all income of the claimant 15 and the claimant’s spouse in a household and actual monetary 16 contributions received from any other person living with the 17 claimant during their respective twelve-month income tax 18 accounting periods ending with or during the base year. 19 g. “Income” means the same as defined in section 425.17. 20 h. “Owned” means owned by an owner as defined in section 21 425.11. 22 i. “Property taxes due” means property taxes including any 23 special assessments, but exclusive of delinquent interest and 24 charges for services, due on a claimant’s homestead in this 25 state, but includes only property taxes for which the claimant 26 is liable and which will actually be paid by the claimant. 27 “Property taxes due” shall be that amount following application 28 of any credit under chapter 425. If a homestead is owned by 29 two or more persons as joint tenants or tenants in common, and 30 one or more persons are not members of a claimant’s household, 31 “property taxes due” is that part of property taxes due on the 32 homestead which equals the ownership percentage of the claimant 33 and the claimant’s household. 34 j. “Special assessment” means an unpaid special assessment 35 -2- LSB 2563YH (3) 88 md/jh 2/ 5

H.F. 770 certified pursuant to chapter 384, subchapter IV. 1 3. a. An ordinance adopted under this section may provide 2 for the abatement of a portion of property taxes due on a 3 homestead owned by a claimant if the claimant’s household 4 income is less than forty-five thousand dollars. 5 b. An ordinance adopted under this section may establish 6 household income limitations for the abatement of property 7 taxes due that are less than forty-five thousand dollars. 8 c. The amount of taxes that are abated under an ordinance 9 adopted under this section shall not cause the remaining amount 10 of property taxes due on the homestead to be less than the 11 amount of property taxes due on the homestead in the fiscal 12 year preceding the year for which the claim is filed following 13 any abatement allowed under this section, if applicable, or the 14 amount of property taxes due on the homestead for the first 15 fiscal year for which the homestead was assessed following 16 completion of construction, whichever is greater. 17 4. Upon adoption of an ordinance under this section, the 18 governing body of the city or the board of supervisors, as 19 applicable, shall notify the county treasurer of the ordinance 20 within ten days of adoption and shall direct the county 21 treasurer to make available forms for claiming the abatement. 22 The director of revenue shall prescribe forms for abatement 23 claims under this section and make such forms available to a 24 county treasurer upon request. Claims for abatement authorized 25 under this section shall be made annually with the county 26 treasurer and must be filed between January 1 and March 1 27 preceding the fiscal year in which the property taxes are due 28 and payable. Every claimant shall be required to provide to 29 the county treasurer, in support of the claim, reasonable 30 proof of age, size and nature of the property claimed as the 31 homestead, household income, and any additional proof necessary 32 to support the claim. 33 5. In case the owner of the homestead is disabled, the 34 claim may be signed and delivered by any member of the owner’s 35 -3- LSB 2563YH (3) 88 md/jh 3/ 5

H.F. 770 family, by the owner’s guardian or conservator, or by any other 1 person who may represent the owner under power of attorney. If 2 the owner of the homestead is married, the spouse may sign and 3 deliver the claim. 4 6. Upon receipt of a qualifying claim for abatement, the 5 county treasurer shall suspend the collection of property taxes 6 due for the applicable fiscal year and such amounts shall be 7 abated and be deemed to be fully satisfied and canceled and 8 the county treasurer shall show the satisfaction on the county 9 system. 10 Sec. 5. APPLICABILITY. This Act applies to ordinances for 11 the abatement of property taxes due and payable in fiscal years 12 beginning on or after July 1, 2021. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill authorizes the governing body of a city to, by 17 ordinance, provide for the abatement of a portion of property 18 taxes due on the homestead owned by a claimant within the city 19 and authorizes a county to, by ordinance, provide for the 20 abatement of a portion of property taxes due on the homestead 21 owned by a claimant in the unincorporated areas of the county. 22 An ordinance adopted under the bill may provide an abatement 23 of a portion of the property taxes due on a homestead owned 24 by a claimant that is at least 70 years of age and who has 25 a household income of $45,000 or less. The bill provides, 26 however, that an abatement ordinance may establish household 27 income limitations that are less than $45,000. 28 The bill provides that the amount of taxes that are abated 29 shall not cause the remaining amount of property taxes due on 30 the homestead to be less than the amount of property taxes due 31 on the homestead in the fiscal year preceding the year for 32 which the claim is filed following any abatement allowed under 33 the bill, if applicable, or the amount of property taxes due on 34 the homestead for the first fiscal year for which the homestead 35 -4- LSB 2563YH (3) 88 md/jh 4/ 5

H.F. 770 was assessed following completion of construction, whichever 1 is greater. 2 Claims for abatement authorized under the bill must be made 3 annually with the county treasurer and must be filed between 4 January 1 and March 1 preceding the fiscal year in which the 5 property taxes are due and payable. Every claimant is required 6 to provide to the county treasurer, in support of the claim, 7 reasonable proof of age, size and nature of the property 8 claimed as the homestead, household income, and any additional 9 proof necessary to support the claim. 10 The bill applies to ordinances for the abatement of property 11 taxes due and payable in fiscal years beginning on or after 12 July 1, 2021. 13 -5- LSB 2563YH (3) 88 md/jh 5/ 5