HF 92 (LSB 1287YH (2) 90)

HOUSE FILE 92

BY  JACOBY

A BILL FOR

An Act modifying provisions relating to the additional property tax credit for elderly persons and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 425.17, subsection 2, paragraph a, Code 2023, is amended to read as follows:
   a.  “Claimant” means any of the following:
   (1)  A person filing a claim for credit under this subchapter who has attained the age of sixty-five years but who has not attained the age of seventy years on or before December 31 of the base year, a person filing a claim for credit or reimbursement under this subchapter who is totally disabled and was totally disabled on or before December 31 of the base year, or a person filing a claim for reimbursement under this subchapter who has attained the age of sixty-five years on or before December 31 of the base year and who is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate.
   (2)  A person filing a claim for credit or reimbursement under this subchapter who has attained the age of twenty-three years on or before December 31 of the base year or was a head of household on December 31 of the base year, as defined in the Internal Revenue Code, but has not attained the age or disability status described in subparagraph (1) or the age status and eligibility criteria of subparagraph (3), and is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate, and was not claimed as a dependent on any other person’s tax return for the base year.
   (3)  A person filing a claim for credit under this subchapter who has attained the age of seventy sixty-five years on or before December 31 of the base year, who has a household income of less than two hundred fifty percent of the federal poverty level, as defined by the most recently revised poverty income guidelines published by the United States department of health and human services, and is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate.
    Sec. 2.  APPLICABILITY.  This Act applies to claims under chapter 425, subchapter II, filed on or after January 1, 2024.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill modifies the eligibility for and the calculation of the amount of the property tax credit under Code chapter 425, subchapter II.
   Under current law, a person filing a claim for the property tax credit who is at least 65 years of age, meets certain income requirements, and does not meet other age and income eligibility criteria, is eligible for a credit based on income equal to specified percentages of property taxes due under the schedule in Code section 425.23(1)(a), but not to exceed $1,000. However, if the person filing a claim for the property tax credit is at least 70 years of age and has a household income of less than 250 percent of the federal poverty level, the tentative credit amount is equal to the greater of the following: (1) the amount of the credit as calculated under the schedule of credit amounts specified in Code section 425.23(1)(a) as if the claimant was an eligible claimant for a credit under that provision; and (2) the difference between the actual amount of property taxes due on the homestead during the applicable fiscal year minus the actual amount of property taxes due on the homestead based on a full assessment during the first fiscal year for which the claimant filed for a credit calculated under the Code chapter and if the claimant has filed for the credit for each of the subsequent fiscal years after the first credit claimed.
   The bill modifies the eligibility for the credit under current law available to claimants who have reached the age of 70 with a household income of less than 250 percent of the federal poverty level to include claimants who have reached the age of 65 regardless of income level.
   The bill applies to claims under Code chapter 425, subchapter II, filed on or after January 1, 2024.