HF 2076 (LSB 5077YH (3) 89)

HOUSE FILE 2076

BY  STAED

A BILL FOR

An Act modifying provisions relating to the filing date for the disabled veteran homestead property tax credit and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 425.1, subsection 4, Code 2022, is amended to read as follows:
   4.  Annually the department of revenue shall certify to the county auditor of each county the credit and its amount in dollars. Each county auditor shall then enter the credit against the tax levied on each eligible homestead in each county payable during the ensuing year, designating on the tax lists the credit as being from the homestead credit fund, and credit shall then be given to the several taxing districts in which eligible homesteads are located in an amount equal to the credits allowed on the taxes of the homesteads.  The amount of credits certified and amounts given to the several taxing districts shall be adjusted, if necessary, as the result of claims filed under section 425.2, subsection 1, paragraph “c”, following the date for certification. The amount of credits shall be apportioned by each county treasurer to the several taxing districts as provided by law, in the same manner as though the amount of the credit had been paid by the owners of the homesteads. However, the several taxing districts shall not draw the funds so credited until after the semiannual allocations have been received by the county treasurer, as provided in this subchapter. Each county treasurer shall show on each tax receipt the amount of credit received from the homestead credit fund.
    Sec. 2.  Section 425.2, subsection 1, Code 2022, is amended to read as follows:
   1.  a.  A person who wishes to qualify for the homestead credit allowed under this subchapter shall obtain the appropriate forms for filing for the credit from the assessor. The person claiming the credit shall file a verified statement and designation of homestead with the assessor for the year for which the person is first claiming the credit.
   b.  The claim shall be filed not later than July 1 of the year for which the person is claiming the credit. A claim filed after July 1 of the year for which the person is claiming the credit shall be considered as a claim filed for the following year.
   c.  For a person filing a claim under this subchapter who qualifies for the credit amount provided under section 425.15, the credit shall be applicable immediately to property tax payments due and payable beginning with the fiscal year during which the claim was filed and for which the person claiming the credit is responsible for payment on or after the date of filing.
    Sec. 3.  Section 425.3, subsection 3, Code 2022, is amended to read as follows:
   3.  Not later than July 6 of each year, or for claims filed under section 425.2, subsection 1, paragraph “c”, as soon as practicable following the date of filing, the assessor shall remit the statements and designation of homesteads to the county auditor with the assessor’s recommendation for allowance or disallowance. If the assessor recommends disallowance of a claim, the assessor shall submit the reasons for the recommendation, in writing, to the county auditor.
    Sec. 4.  Section 425.4, Code 2022, is amended to read as follows:
   425.4  Certification to treasurer.
   All claims which have been allowed by the board of supervisors shall be certified on or before August 1, in each year, or for claims filed under section 425.2, subsection 1, paragraph “c”, as soon as practicable following the date of allowance, by the county auditor to the county treasurer, which certificates shall list the total amount of dollars, listed by taxing district in the county, due for homestead tax credits claimed and allowed. The county treasurer shall forthwith certify to the department of revenue the total amount of dollars, listed by taxing district in the county, due for homestead tax credits claimed and allowed.
    Sec. 5.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to veterans benefits by modifying provisions relating to the filing date for the disabled veteran homestead property tax credit.
   Current Code section 425.2 provides that a person who wishes to receive the homestead property tax credit must file the claim with the assessor not later than July 1 of the assessment year for which the person is claiming the credit and a claim filed after July 1 of the assessment year for which the person is claiming the credit shall be considered as a claim filed for the following year. Consequently, for example, a claim filed on July 1, 2021, would be allowed for the assessment year beginning January 1, 2021, for property taxes calculated using valuations from that assessment year that are due and payable during the fiscal year beginning July 1, 2022, and ending June 30, 2023.
   The bill modifies the timeline for which a homestead credit is allowed if the person claiming the credit is eligible for the disabled veteran homestead credit amount under Code section 425.15. For such a claimant, the credit shall be applicable immediately to property tax payments due and payable beginning with the fiscal year during which the claim was filed and for which the person claiming the credit is responsible for payment on or after the date of filing. For example, a claim filed on July 1, 2021, would be allowed for property taxes that are due and payable during the fiscal year beginning July 1, 2021, and ending June 30, 2022, for which the claimant is responsible for payment.
   The bill takes effect upon enactment.