Senate File 2083 - Introduced SENATE FILE 2083 BY R. TAYLOR , CARLIN , BISIGNANO , LYKAM , GIDDENS , QUIRMBACH , PETERSEN , J. SMITH , WAHLS , KINNEY , DOTZLER , T. TAYLOR , and BOULTON 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 5213XS (3) 88 md/jh
S.F. 2083 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 the homestead or an 5 adjustment of the amount of taxes levied against the homestead, 6 as provided in this chapter, to prevent an increase in the 7 value or an increase in the amount of taxes owed on the 8 homestead. 9 Sec. 2. NEW SECTION . 425B.2 Definitions. 10 As used in this chapter, unless the context otherwise 11 requires: 12 1. “Assessed value” means the actual value prior to any 13 adjustment pursuant to section 441.21, subsection 4. 14 2. “Base assessment year” means the assessment year 15 beginning during the base year. 16 3. “Base year” means the calendar year last ending before 17 the claim is filed. 18 4. “Claimant” means a person filing a claim for adjustment 19 under this chapter who has attained the age of sixty-five years 20 on or before December 31 of the base year and is domiciled in 21 this state at the time the claim is filed or at the time of the 22 person’s death in the case of a claim filed by the executor or 23 administrator of the claimant’s estate. 24 5. “Earned income” means the same as defined in section 32 25 of the Internal Revenue Code. 26 6. “Homestead” means the same as defined in section 425.11. 27 7. “Owned” means owned by an owner as defined in section 28 425.11. 29 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 30 The right to file a claim for an assessed value adjustment 31 under this chapter may be exercised by the claimant or on 32 behalf of a claimant by the claimant’s legal guardian, spouse, 33 or attorney, or by the executor or administrator of the 34 claimant’s estate. If a claimant dies after having filed a 35 -1- LSB 5213XS (3) 88 md/jh 1/ 6
S.F. 2083 claim for adjustment, the amount of any adjustment shall be 1 made as if the claimant had not died. 2 Sec. 4. NEW SECTION . 425B.4 Claim for adjustment. 3 1. Subject to the limitations provided in this chapter, 4 a claimant may annually claim an adjustment of the assessed 5 value of the claimant’s homestead for the base assessment year. 6 The adjustment claim shall be filed with the county assessor 7 between January 1 and February 15 following the end of the 8 base assessment year. However, in case of sickness, absence, 9 or other disability of the claimant, or if in the judgment of 10 the county assessor good cause exists, the county assessor may 11 extend the time for filing a claim for adjustment through June 12 30 of the same calendar year. 13 2. The county assessor shall notify the department of 14 revenue by March 1 of the number of claimants receiving 15 adjustments under this chapter and the total amount of the 16 reduced assessed values for the base assessment year. 17 Sec. 5. NEW SECTION . 425B.5 Adjustment —— maximum tax 18 dollars levied. 19 1. If the earned income qualification specified in 20 subsection 2 is met, the assessed value of the claimant’s 21 homestead in the base assessment year shall be adjusted, but 22 not increased, to equal the assessed value, as such assessed 23 value may have previously been adjusted pursuant to this 24 chapter, in the assessment year preceding the base assessment 25 year. If the amount of property taxes levied against the 26 adjusted assessment following application of all applicable 27 exemptions and credits exceeds the amount of property taxes 28 levied against the property following application of all 29 applicable exemptions and credits in the fiscal year for which 30 taxes were first levied against an adjusted assessment under 31 this chapter, the treasurer shall subtract and cancel the 32 difference from the amount due. 33 2. A claimant is eligible for an adjustment to the assessed 34 value of the claimant’s homestead if the claimant’s household 35 -2- LSB 5213XS (3) 88 md/jh 2/ 6
S.F. 2083 earned income is less than eight thousand dollars in the base 1 year. 2 Sec. 6. NEW SECTION . 425B.6 Administration. 3 The director of revenue shall make available suitable forms 4 for claiming an assessed value adjustment with instructions 5 for claimants. Each assessor and county treasurer shall make 6 available the forms and instructions. The claim shall be in a 7 form as the director may prescribe. 8 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 9 1. Every claimant shall give the department of revenue, in 10 support of the claim, reasonable proof of: 11 a. Age. 12 b. Changes of homestead. 13 c. Size and nature of the property claimed as the homestead. 14 d. Household earned income. 15 2. The director of revenue may require any additional proof 16 necessary to support a claim. 17 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 18 If on the audit of a claim for adjustment under this 19 chapter, the director of revenue determines the claim is not 20 allowable, the director shall notify the claimant of the denial 21 and the reasons for it. The director shall not deny a claim 22 after three years from October 31 of the year in which the 23 claim was filed. The director shall give notification to the 24 county assessor of the denial of the claim and the county 25 assessor shall instruct the county treasurer to proceed to 26 collect the tax that would have been levied on the applicable 27 adjusted assessed value in the same manner as other property 28 taxes due and payable are collected, if the property on which 29 the adjustment was granted is still owned by the claimant. 30 However, if the claim was incorrectly allowed due to a clerical 31 error, error by a person other than the claimant, or an 32 innocent misrepresentation by or on behalf of the claimant, the 33 proceedings to collect the tax shall be limited to the taxes 34 due and payable in the twelve months immediately preceding the 35 -3- LSB 5213XS (3) 88 md/jh 3/ 6
S.F. 2083 disallowance. 1 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 2 1. A claimant shall expressly waive any right to 3 confidentiality relating to all income tax information 4 obtainable through the department of revenue including all 5 information covered by sections 422.20 and 422.72. This waiver 6 shall apply to information available to the county assessor who 7 shall hold the information confidential except that it may be 8 used as evidence to disallow the assessed value adjustment. 9 2. The department of revenue may release information 10 pertaining to a person’s eligibility or claim for or receipt of 11 the assessed value adjustment to an employee of the department 12 of inspections and appeals in the employee’s official conduct 13 of an audit or investigation. 14 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 15 A person who makes a false affidavit for the purpose of 16 obtaining an adjustment in assessed value provided for in this 17 chapter or who knowingly receives the adjustment without being 18 legally entitled to it or makes claim for the adjustment in 19 more than one county without being legally entitled to it is 20 guilty of a fraudulent practice. The claim for adjustment 21 shall be disallowed in full and property tax shall be levied 22 on the disallowed adjustment at the rate that would have been 23 levied but for the adjustment. The director of revenue shall 24 send a notice of disallowance of the claim. 25 Sec. 11. NEW SECTION . 425B.11 Notices. 26 Section 423.39, subsection 1, shall apply to all notices 27 under this chapter. 28 Sec. 12. NEW SECTION . 425B.12 Appeals. 29 Any person aggrieved by an act or decision of the director 30 of revenue or the department of revenue under this chapter 31 shall have the same rights of appeal and review as provided in 32 section 423.38 and the rules of the department of revenue. 33 Sec. 13. NEW SECTION . 425B.13 Disallowance of certain 34 claims. 35 -4- LSB 5213XS (3) 88 md/jh 4/ 6
S.F. 2083 A claim for adjustment shall be disallowed if the department 1 finds that the claimant or a person of the claimant’s household 2 received title to the homestead primarily for the purpose of 3 receiving benefits under this chapter. 4 Sec. 14. NEW SECTION . 425B.14 Rules. 5 The director of revenue shall adopt rules in accordance with 6 chapter 17A for the interpretation and administration of this 7 chapter, including rules to prevent and disallow duplication of 8 benefits and to prevent any unreasonable hardship or advantage 9 to any person. 10 Sec. 15. IMPLEMENTATION. The adjustments to assessed value 11 and property taxes due under this Act shall not be considered 12 an exemption or credit for purposes of section 25B.7. 13 Sec. 16. APPLICABILITY. This Act applies retroactively to 14 January 1, 2020, for assessment years beginning on or after 15 that date and to the filing of claims on or after January 1, 16 2021, for adjustments of assessed values. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill provides for an adjustment in the assessed value of 21 a homestead, as defined in the bill, if the owner is a person 22 who is 65 or older and who has household earned income of less 23 than $8,000 per year. If the qualifications established in the 24 bill are met, the assessed value of the homestead upon which 25 property taxes are levied in a fiscal year is the same assessed 26 value as for the previous fiscal year. The bill specifies 27 that assessed value is that value prior to any rollback being 28 applied. 29 The bill further provides that if the amount of property 30 taxes levied against the adjusted assessment following 31 application of all applicable exemptions and credits exceeds 32 the amount of property taxes levied against the property in 33 the fiscal year for which taxes were first levied against an 34 adjusted assessment under the bill, the county treasurer is 35 -5- LSB 5213XS (3) 88 md/jh 5/ 6
S.F. 2083 required to subtract and cancel such difference from the amount 1 due. 2 The bill provides that a person who makes a false affidavit 3 for the purpose of obtaining an adjustment, knowingly receives 4 the adjustment without being legally entitled to it, or makes 5 claim for the adjustment in more than one county without being 6 legally entitled to it is guilty of a fraudulent practice and 7 is subject to a criminal penalty. 8 The adjustments provided for in the bill shall not be 9 considered an exemption or credit for purposes of Code section 10 25B.7. 11 The bill applies retroactively to January 1, 2020, for 12 assessment years beginning on or after that date and applies to 13 claims filed on or after January 1, 2021, for the adjustments. 14 -6- LSB 5213XS (3) 88 md/jh 6/ 6