House File 82 - Introduced HOUSE FILE 82 BY JACOBY A BILL FOR An Act providing a property assessment adjustment for certain 1 property of persons who have attained the age of sixty-seven 2 years, six months, providing a penalty, and including 3 retroactive and other applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1445YH (2) 89 md/jh
H.F. 82 Section 1. NEW SECTION . 425B.1 Homestead assessed value 1 adjustment —— purpose. 2 A person who owns a homestead and who meets the 3 qualifications provided in this chapter is eligible for an 4 adjustment in the assessed value of the person’s homestead, as 5 provided in this chapter, to prevent an increase in such value. 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-seven 17 years, six months on or before December 31 of the base year and 18 is domiciled in this state at the time the claim is filed or at 19 the time of the person’s death in the case of a claim filed by 20 the executor or administrator of the claimant’s estate. 21 5. “Homestead” means the same as defined in section 425.11. 22 6. “Owned” means owned by an owner as defined in section 23 425.11. 24 Sec. 3. NEW SECTION . 425B.3 Right to file a claim. 25 The right to file a claim for an assessed value adjustment 26 under this chapter may be exercised by the claimant or on 27 behalf of a claimant by the claimant’s legal guardian, spouse, 28 or attorney, or by the executor or administrator of the 29 claimant’s estate. If a claimant dies after having filed a 30 claim for adjustment, the amount of any adjustment shall be 31 made as if the claimant had not died. 32 Sec. 4. NEW SECTION . 425B.4 Claim for adjustment. 33 1. Subject to the limitations provided in this chapter, 34 a claimant may annually claim an adjustment of the assessed 35 -1- LSB 1445YH (2) 89 md/jh 1/ 5
H.F. 82 value of the claimant’s homestead for the base assessment year. 1 The adjustment claim shall be filed with the county assessor 2 between January 1 and February 15 immediately following 3 the close of the base assessment year. However, in case of 4 sickness, absence, or other disability of the claimant, or 5 if in the judgment of the county assessor good cause exists, 6 the county assessor may extend the time for filing a claim for 7 adjustment through June 30 of the same calendar year. 8 2. The county assessor shall notify the department of 9 revenue by March 1 of the number of claimants receiving 10 adjustments under this chapter and the total amount of the 11 reduced assessed values for the base assessment year. 12 Sec. 5. NEW SECTION . 425B.5 Adjustment —— maximum tax 13 dollars levied. 14 If the claimant meets the criteria for an adjustment under 15 this chapter, the assessed value of the claimant’s homestead in 16 the base assessment year shall be adjusted, but not increased, 17 to equal the assessed value, as such assessed value may have 18 been adjusted pursuant to this chapter, in the assessment year 19 preceding the base assessment year. If the amount of property 20 taxes levied against the adjusted assessment exceeds the amount 21 of property taxes levied against the property in the fiscal 22 year for which taxes were first levied against an adjusted 23 assessment under this chapter, the treasurer shall subtract the 24 difference from the amount due. 25 Sec. 6. NEW SECTION . 425B.6 Administration. 26 The director of revenue shall make available suitable forms 27 for claiming an assessed value adjustment with instructions 28 for claimants. Each assessor and county treasurer shall make 29 available the forms and instructions. The claim shall be in a 30 form as the director may prescribe. 31 Sec. 7. NEW SECTION . 425B.7 Proof of claim. 32 1. Every claimant shall give the department of revenue, in 33 support of the claim, reasonable proof of: 34 a. Age. 35 -2- LSB 1445YH (2) 89 md/jh 2/ 5
H.F. 82 b. Changes of homestead. 1 c. Size and nature of the property claimed as the homestead. 2 2. The director of revenue may require any additional proof 3 necessary to support a claim. 4 Sec. 8. NEW SECTION . 425B.8 Audit —— denial. 5 If on the audit of a claim for adjustment under this chapter, 6 the director of revenue determines the claim is not allowable, 7 the director shall notify the claimant of the denial and the 8 reasons for it. The director shall not deny a claim after 9 three years from October 31 of the year in which the claim was 10 filed. The director shall give notification to the county 11 assessor of the denial of the claim and the county assessor 12 shall instruct the county treasurer to proceed to collect the 13 tax that would have been levied on the applicable adjusted 14 assessed value in the same manner as other property taxes 15 due and payable are collected, if the property on which the 16 adjustment was granted is still owned by the claimant. 17 Sec. 9. NEW SECTION . 425B.9 Waiver of confidentiality. 18 1. A claimant shall expressly waive any right to 19 confidentiality relating to all information available to the 20 county assessor who shall hold the information confidential 21 except that it may be used as evidence to disallow the assessed 22 value adjustment. 23 2. The department of revenue may release information 24 pertaining to a person’s eligibility or claim for or receipt of 25 the assessed value adjustment to an employee of the department 26 of inspections and appeals in the employee’s official conduct 27 of an audit or investigation. 28 Sec. 10. NEW SECTION . 425B.10 False claim —— penalty. 29 A person who makes a false affidavit for the purpose of 30 obtaining an adjustment in assessed value provided for in 31 this chapter or who knowingly receives the adjustment without 32 being legally entitled to it or makes claim for the adjustment 33 in more than one county in the state without being legally 34 entitled to it is guilty of a fraudulent practice. The claim 35 -3- LSB 1445YH (2) 89 md/jh 3/ 5
H.F. 82 for adjustment shall be disallowed in full and property tax 1 shall be levied on the disallowed adjustment at the rate that 2 would have been levied but for the adjustment. The director of 3 revenue shall send a notice of disallowance of the claim. 4 Sec. 11. NEW SECTION . 425B.11 Notices, appeals, and 5 rules. 6 To the extent not otherwise contrary to the provisions of 7 this chapter: 8 1. Section 423.39, subsection 1, shall apply to all notices 9 under this chapter. 10 2. Any person aggrieved by an act or decision of the 11 director of revenue or the department of revenue under this 12 chapter shall have the same rights of appeal and review as 13 provided in section 423.38 and the rules of the department of 14 revenue. 15 3. A claim for adjustment shall be disallowed if the 16 department finds that the claimant or a person of the 17 claimant’s household received title to the homestead primarily 18 for the purpose of receiving benefits under this chapter. 19 4. The department of revenue shall adopt rules pursuant to 20 chapter 17A to administer and interpret this chapter, including 21 rules to prevent and disallow duplication of benefits and to 22 prevent any unreasonable hardship or advantage to any person. 23 Sec. 12. APPLICABILITY. This Act applies retroactively to 24 January 1, 2021, for assessment years beginning on or after 25 that date and to the filing of claims on or after January 1, 26 2022, for adjustments of assessed values. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill provides for an adjustment in the assessed value 31 of a homestead, as defined in the bill, if the owner is a 32 person who is 67 years, 6 months in age or older. If the 33 qualifications are met, the assessed value of the homestead 34 upon which property taxes are levied in a fiscal year is the 35 -4- LSB 1445YH (2) 89 md/jh 4/ 5
H.F. 82 same assessed value as for the previous fiscal year. The bill 1 specifies that assessed value is the actual value prior to any 2 rollback being applied. 3 The bill provides that a person who makes a false affidavit 4 for the purpose of obtaining an adjustment, knowingly receives 5 the adjustment without being legally entitled to it, or makes 6 claim for the adjustment in more than one county without being 7 legally entitled to it is guilty of a fraudulent practice and 8 is subject to a criminal penalty. 9 The bill applies retroactively to January 1, 2021, for 10 assessment years beginning on or after that date and applies to 11 claims filed on or after January 1, 2022, for the adjustments. 12 -5- LSB 1445YH (2) 89 md/jh 5/ 5