Senate File 20 - Introduced SENATE FILE 20 BY ZAUN A BILL FOR An Act modifying provisions relating to the additional property 1 tax credit for elderly persons and including applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1305XS (1) 90 md/jh

S.F. 20 Section 1. Section 425.17, subsection 2, paragraph a, 1 subparagraphs (1) and (3), Code 2023, are amended to read as 2 follows: 3 (1) A person filing a claim for credit under this subchapter 4 who has attained the age of sixty-five years but who has 5 not attained the age of seventy years on or before December 6 31 of the base year, a person filing a claim for credit or 7 reimbursement under this subchapter who is totally disabled 8 and was totally disabled on or before December 31 of the base 9 year, or a person filing a claim for reimbursement under this 10 subchapter who has attained the age of sixty-five years on or 11 before December 31 of the base year and who is domiciled in 12 this state at the time the claim is filed or at the time of the 13 person’s death in the case of a claim filed by the executor or 14 administrator of the claimant’s estate. 15 (3) A person filing a claim for credit under this subchapter 16 who has attained the age of seventy sixty-five years on or 17 before December 31 of the base year, who has a household income 18 of less than two hundred fifty percent of the federal poverty 19 level, as defined by the most recently revised poverty income 20 guidelines published by the United States department of health 21 and human services whose homestead has an actual value of five 22 hundred thousand dollars or less , and who is domiciled in this 23 state at the time the claim is filed or at the time of the 24 person’s death in the case of a claim filed by the executor or 25 administrator of the claimant’s estate. 26 Sec. 2. APPLICABILITY. This Act applies to claims under 27 chapter 425, subchapter II, filed on or after January 1, 2024. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill modifies the eligibility for and the calculation 32 of the amount of the property tax credit under Code chapter 33 425, subchapter II. 34 Under current law, a person filing a claim for the property 35 -1- LSB 1305XS (1) 90 md/jh 1/ 2

S.F. 20 tax credit who is at least 65 years of age, meets certain 1 income requirements, and does not meet other age and income 2 eligibility criteria, is eligible for a credit based on income 3 equal to specified percentages of property taxes due under 4 the schedule in Code section 425.23(1)(a), but not to exceed 5 $1,000. However, if the person filing a claim for the property 6 tax credit is at least 70 years of age and has a household 7 income of less than 250 percent of the federal poverty level, 8 the tentative credit amount is equal to the greater of the 9 following: (1) the amount of the credit as calculated under 10 the schedule of credit amounts specified in Code section 11 425.23(1)(a) as if the claimant was an eligible claimant for 12 a credit under that provision; and (2) the difference between 13 the actual amount of property taxes due on the homestead during 14 the applicable fiscal year minus the actual amount of property 15 taxes due on the homestead based on a full assessment during 16 the first fiscal year for which the claimant filed for a credit 17 calculated under the Code chapter and if the claimant has filed 18 for the credit for each of the subsequent fiscal years after 19 the first credit claimed. 20 The bill modifies the eligibility for and calculation of 21 the credit under current law available to claimants who have 22 reached the age of 65 or more by limiting the credit to owners 23 whose homestead value is $500,000 or less, by striking the 24 maximum income level of 250 percent of the federal poverty 25 level, and by imposing the credit calculation under current 26 law for claimants 70 years of age and over to all claimants 65 27 years of age and older. 28 The bill applies to claims under Code chapter 425, 29 subchapter II, filed on or after January 1, 2024. 30 -2- LSB 1305XS (1) 90 md/jh 2/ 2