Senate File 263 - Introduced SENATE FILE 263 BY R. SMITH A BILL FOR An Act relating to the filing date and approval for disabled 1 veteran homestead property tax credits and including 2 effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1027XS (3) 89 md/jh

S.F. 263 Section 1. Section 425.1, subsection 4, Code 2021, is 1 amended to read as follows: 2 4. Annually the department of revenue shall certify to 3 the county auditor of each county the credit and its amount 4 in dollars. Each county auditor shall then enter the credit 5 against the tax levied on each eligible homestead in each 6 county payable during the ensuing year, designating on the tax 7 lists the credit as being from the homestead credit fund, and 8 credit shall then be given to the several taxing districts in 9 which eligible homesteads are located in an amount equal to the 10 credits allowed on the taxes of the homesteads. The amount 11 of credits certified and amounts given to the several taxing 12 districts shall be adjusted, if necessary, as the result of 13 claims filed and approved under section 425.2, subsection 1, 14 paragraph “c” , following the date for certification. The amount 15 of credits shall be apportioned by each county treasurer to the 16 several taxing districts as provided by law, in the same manner 17 as though the amount of the credit had been paid by the owners 18 of the homesteads. However, the several taxing districts shall 19 not draw the funds so credited until after the semiannual 20 allocations have been received by the county treasurer, as 21 provided in this chapter . Each county treasurer shall show 22 on each tax receipt the amount of credit received from the 23 homestead credit fund. 24 Sec. 2. Section 425.2, subsection 1, Code 2021, is amended 25 to read as follows: 26 1. a. A person who wishes to qualify for the credit allowed 27 under this chapter shall obtain the appropriate forms for 28 filing for the credit from the assessor. The person claiming 29 the credit shall file a verified statement and designation of 30 homestead with the assessor for the year for which the person 31 is first claiming the credit. 32 b. The claim shall be filed not later than July 1 of the 33 year for which the person is claiming the credit. A claim 34 filed after July 1 of the year for which the person is claiming 35 -1- LSB 1027XS (3) 89 md/jh 1/ 3

S.F. 263 the credit shall be considered as a claim filed for the 1 following year. 2 c. (1) For a person filing a claim under this subchapter 3 who qualifies for the credit amount provided under section 4 425.15 and who is approved under subparagraph (2), the credit 5 shall be applicable immediately to property tax payments due 6 and payable beginning with the fiscal year that the claim 7 was filed and for which the person claiming the credit is 8 responsible for payment on or after the date of filing. 9 (2) In order to receive the credit for property taxes due 10 and payable in the fiscal year that the claim was filed, a 11 claimant satisfying the requirements of subparagraph (1) shall 12 file a petition, duly sworn to, with the board of supervisors, 13 requesting approval of the credit for that fiscal year. The 14 board of supervisors may, if in the board’s judgment it is for 15 the best interests of the public and the claimant, approve the 16 request. 17 Sec. 3. Section 425.3, subsection 3, Code 2021, is amended 18 to read as follows: 19 3. Not later than July 6 of each year, or for claims filed 20 under section 425.2, subsection 1, paragraph “c” , as soon as 21 practicable following the date of approval, the assessor shall 22 remit the statements and designation of homesteads to the 23 county auditor with the assessor’s recommendation for allowance 24 or disallowance. If the assessor recommends disallowance 25 of a claim, the assessor shall submit the reasons for the 26 recommendation, in writing, to the county auditor. 27 Sec. 4. Section 425.4, Code 2021, is amended to read as 28 follows: 29 425.4 Certification to treasurer. 30 All claims which have been allowed by the board of 31 supervisors shall be certified on or before August 1, in each 32 year, or for claims filed under section 425.2, subsection 33 1, paragraph “c” , as soon as practicable following the date 34 of approval, by the county auditor to the county treasurer, 35 -2- LSB 1027XS (3) 89 md/jh 2/ 3

S.F. 263 which certificates shall list the total amount of dollars, 1 listed by taxing district in the county, due for homestead 2 tax credits claimed and allowed. The county treasurer shall 3 forthwith certify to the department of revenue the total amount 4 of dollars, listed by taxing district in the county, due for 5 homestead tax credits claimed and allowed. 6 Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate 7 importance, takes effect upon enactment. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 Current Code section 425.2 provides that a person who wishes 12 to receive the homestead property tax credit must file the 13 claim with the assessor not later than July 1 of the assessment 14 year for which the person is claiming the credit and a claim 15 filed after July 1 of the assessment year for which the person 16 is claiming the credit shall be considered as a claim filed 17 for the following year. Consequently, for example, a claim 18 filed on July 1, 2021, would be allowed for the assessment year 19 beginning January 1, 2021, for property taxes calculated using 20 valuations from that assessment year that are due and payable 21 during the fiscal year beginning July 1, 2022, and ending June 22 30, 2023. 23 This bill modifies the timeline for which a homestead credit 24 is allowed if the person claiming the credit is eligible for 25 the disabled veteran homestead credit amount under Code section 26 425.15. For such a claimant, if approved by the board of 27 supervisors, the credit shall be applicable immediately to 28 property tax payments due and payable beginning with the fiscal 29 year that the claim was filed and for which the person claiming 30 the credit is responsible for payment on or after the date of 31 filing. For example, a claim filed on July 1, 2021, would be 32 allowed for property taxes that are due and payable during the 33 fiscal year beginning July 1, 2021, and ending June 30, 2022. 34 The bill takes effect upon enactment. 35 -3- LSB 1027XS (3) 89 md/jh 3/ 3