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Senate File 100 - IntroducedA Bill ForAn Act 1establishing a homestead adjustment property tax credit
2for certain property of persons who have attained the age
3of sixty-five or who are totally disabled, applying income
4limitations, providing a penalty, making appropriations, and
5including retroactive and other applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 425B.1 Homestead adjustment credit
2— purpose.
3Persons who own their homesteads and who meet the
4qualifications provided in this chapter are eligible for a
5homestead adjustment credit, as provided in this chapter, to
6prevent an increase in the amount of property taxes owed.
7 Sec. 2. NEW SECTION. 425B.2 Definitions.
8As used in this chapter, unless the context otherwise
9requires:
101. “Base assessment year” means the assessment year
11beginning in the base year.
122. “Base year” means the calendar year last ending before
13the claim is filed.
143. “Claimant” means a person filing a claim for a credit
15under this chapter who has either attained the age of
16sixty-five years on or before December 31 of the base year or
17is totally disabled as defined in section 425.17, and who is
18domiciled in this state at the time the claim is filed or at the
19time of the person’s death in the case of a claim filed by the
20executor or administrator of the claimant’s estate.
214. “Homestead” means the same as defined in section 425.11.
225. “Household”, “household income”, and “income” mean the
23same as defined in section 425.17.
246. “Owned” means owned by an owner as defined in section
25425.11.
26 Sec. 3. NEW SECTION. 425B.3 Right to file a claim.
27The right to file a claim for a homestead adjustment
28credit under this chapter may be exercised by the claimant
29or on behalf of a claimant by the claimant’s legal guardian,
30spouse, or attorney, or by the executor or administrator of the
31claimant’s estate. If a claimant dies after having filed a
32claim for a credit, the amount of the credit shall be made as if
33the claimant had not died. Only one claimant per household per
34fiscal year shall be entitled to a credit under this chapter.
35 Sec. 4. NEW SECTION. 425B.4 Claim for credit.
-1- 11. Subject to the limitations provided in this chapter, a
2claimant may annually claim a homestead adjustment credit for
3the claimant’s homestead for the base assessment year. The
4claim shall be filed with the county assessor for approval
5between January 1 and February 15 immediately following
6the close of the base assessment year. However, in case of
7sickness, absence, or other disability of the claimant, or if
8in the judgment of the county assessor good cause exists, the
9county assessor may extend the time for filing a claim through
10June 30 of the same calendar year.
112. The assessor shall remit the list of approved eligible
12claims to the county auditor by July 6 of each year. All
13eligible claims for credit shall be certified on or before
14August 1, in each year, by the county auditor to the county
15treasurer, which certificates shall list the total number of
16homestead adjustment credits in the county and the total amount
17of all such credits, listed by taxing district in the county.
18The county treasurer shall certify to the department of revenue
19the total amount of dollars, listed by taxing district in the
20county, due for homestead adjustment credits claimed.
21 Sec. 5. NEW SECTION. 425B.5 Credit amount — income
22limitations.
231. If the income qualification specified in subsection 2 is
24met, the amount of the claimant’s homestead adjustment credit
25shall be an amount equal to the amount of property taxes levied
26against the homestead for the base assessment year following
27application of all applicable property tax credits other than
28the homestead adjustment credit minus the amount of property
29taxes levied against the homestead for the assessment year
30preceding the base assessment year following application of all
31property tax credits.
322. A claimant is eligible for a homestead adjustment
33credit against taxes levied on the claimant’s homestead if
34the claimant’s household income is less than thirty thousand
35dollars in the base year.
-2-1 Sec. 6. NEW SECTION. 425B.6 Administration.
21. The director of revenue shall make available suitable
3forms for claiming a homestead adjustment credit with
4instructions for claimants. Each assessor and county treasurer
5shall make available the forms and instructions. The claim
6shall be in a form as the director may prescribe.
72. The homestead adjustment credit fund is created within
8the state treasury under the control of the department of
9revenue. There is appropriated annually from the general
10fund of the state to the department of revenue for deposit
11in the homestead adjustment credit fund an amount sufficient
12to provide all credits authorized under this chapter. The
13director of the department of administrative services shall
14issue warrants on the homestead adjustment credit fund payable
15to the county treasurers of the several counties of the state
16under this chapter. The amount due each county shall be paid
17in two payments on November 15 and March 15 of each fiscal
18year, drawn upon warrants payable to the respective county
19treasurers. The two payments shall be as nearly equal as
20possible.
213. Annually, the department of revenue shall certify to
22the county auditor of each county the credit and its amount
23in dollars. Each county auditor shall then enter the credit
24against the tax levied on each eligible homestead in each
25county payable during the ensuing year, designating on the
26tax lists the credit as being from the homestead adjustment
27credit fund, and credit shall then be given to the several
28taxing districts in which eligible homesteads are located in
29an amount equal to the credits allowed on the taxes of the
30homesteads. The amount of credits shall be apportioned by each
31county treasurer to the several taxing districts as provided
32by law, in the same manner as though the amount of the credit
33had been paid by the owners of the homesteads. However, the
34several taxing districts shall not draw the funds so credited
35until after the semiannual allocations have been received by
-3-1the county treasurer, as provided in this chapter. Each county
2treasurer shall show on each tax receipt the amount of credit
3received from the homestead adjustment credit fund.
4 Sec. 7. NEW SECTION. 425B.7 Proof of claim.
51. Every claimant shall give the department of revenue, in
6support of the claim, reasonable proof of:
7a. Age and total disability, if any.
8b. Changes of homestead.
9c. Size and nature of the property claimed as the homestead.
10d. Household income.
112. The director of revenue may require any additional proof
12necessary to support a claim.
13 Sec. 8. NEW SECTION. 425B.8 Audit — denial.
14If on the audit of a claim for a homestead adjustment credit
15under this chapter, the director of revenue determines the
16claim is not allowable, the director shall notify the claimant
17of the denial and the reasons for it. The director shall
18not deny a claim after three years from October 31 of the
19year in which the claim was filed. The director shall give
20notification to the county assessor of the denial of the claim
21and the county assessor shall instruct the county treasurer to
22proceed to collect the tax that would have been levied on the
23applicable adjusted assessed value in the same manner as other
24property taxes due and payable are collected, if the property
25on which the credit was granted is still owned by the claimant.
26However, if the claim was incorrectly allowed due to a clerical
27error, error by a person other than the claimant, or an
28innocent misrepresentation by or on behalf of the claimant, the
29proceedings to collect the tax shall be limited to the taxes
30due and payable in the twelve months immediately preceding the
31disallowance.
32 Sec. 9. NEW SECTION. 425B.9 Waiver of confidentiality.
331. A claimant shall expressly waive any right to
34confidentiality relating to all income tax information
35obtainable through the department of revenue including all
-4-1information covered by sections 422.20 and 422.72. This waiver
2shall apply to information available to the county assessor who
3shall hold the information confidential except that it may be
4used as evidence to disallow the homestead adjustment credit.
52. The department of revenue may release information
6pertaining to a person’s eligibility or claim for or receipt
7of the credit to an employee of the department of inspections
8and appeals in the employee’s official conduct of an audit or
9investigation.
10 Sec. 10. NEW SECTION. 425B.10 False claim — penalty.
11A person who makes a false affidavit for the purpose of
12obtaining a homestead adjustment credit provided for in this
13chapter or who knowingly receives the credit without being
14legally entitled to it or makes claim for the credit in more
15than one county in the state without being legally entitled
16to it is guilty of a fraudulent practice. The claim for
17credit shall be disallowed in full and if the claim has been
18paid, the amount shall be recovered in the manner provided in
19section 425B.8. The director of revenue shall send a notice
20of disallowance of the claim.
21 Sec. 11. NEW SECTION. 425B.11 Notices, appeals, and
22rules.
23To the extent not otherwise contrary to the provisions of
24this chapter:
251. Section 423.39, subsection 1, shall apply to all notices
26under this chapter.
272. Any person aggrieved by an act or decision of the
28director of revenue or the department of revenue under this
29chapter shall have the same rights of appeal and review as
30provided in section 423.38 and the rules of the department of
31revenue.
323. A claim for credit shall be disallowed if the department
33finds that the claimant or a person of the claimant’s household
34received title to the homestead primarily for the purpose of
35receiving benefits under this chapter.
-5- 14. The department of revenue shall adopt rules pursuant to
2chapter 17A to administer and interpret this chapter, including
3rules to prevent and disallow duplication of benefits and to
4prevent any unreasonable hardship or advantage to any person.
5 Sec. 12. APPLICABILITY. This Act applies retroactively to
6January 1, 2019, for assessment years beginning on or after
7that date and to the filing of claims for homestead adjustment
8credits on or after January 1, 2020.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill establishes a homestead adjustment credit for an
13owner of a homestead if the owner is a person who is either 65
14or older or totally disabled, and who has household income of
15less than $30,000 per year. If the qualifications established
16in the bill are met, the amount of the homestead adjustment
17credit shall be an amount equal to the amount of property taxes
18levied against the homestead for the base assessment year, as
19defined in the bill, following application of all applicable
20property tax credits other than the homestead adjustment credit
21minus the amount of property taxes levied against the homestead
22for the assessment year preceding the base assessment year
23following application of all property tax credits. Only one
24claimant per household per fiscal year may receive the credit
25under the bill.
26The bill annually appropriates from the general fund of the
27state to the department of revenue for deposit in the homestead
28adjustment credit fund, created in the bill, an amount
29sufficient to fund all of the homestead adjustment credits for
30the fiscal year.
31The bill provides that a person who makes a false affidavit
32for the purpose of obtaining a credit, knowingly receives a
33credit without being legally entitled to it, or makes claim for
34a credit in more than one county without being legally entitled
35to it is guilty of a fraudulent practice and is subject to a
-6-1criminal penalty.
2The bill applies retroactively to January 1, 2019, for
3assessment years beginning on or after that date and applies to
4claims filed on or after January 1, 2020, for the credit.
-7-md/jh
2for certain property of persons who have attained the age
3of sixty-five or who are totally disabled, applying income
4limitations, providing a penalty, making appropriations, and
5including retroactive and other applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 425B.1 Homestead adjustment credit
2— purpose.
3Persons who own their homesteads and who meet the
4qualifications provided in this chapter are eligible for a
5homestead adjustment credit, as provided in this chapter, to
6prevent an increase in the amount of property taxes owed.
7 Sec. 2. NEW SECTION. 425B.2 Definitions.
8As used in this chapter, unless the context otherwise
9requires:
101. “Base assessment year” means the assessment year
11beginning in the base year.
122. “Base year” means the calendar year last ending before
13the claim is filed.
143. “Claimant” means a person filing a claim for a credit
15under this chapter who has either attained the age of
16sixty-five years on or before December 31 of the base year or
17is totally disabled as defined in section 425.17, and who is
18domiciled in this state at the time the claim is filed or at the
19time of the person’s death in the case of a claim filed by the
20executor or administrator of the claimant’s estate.
214. “Homestead” means the same as defined in section 425.11.
225. “Household”, “household income”, and “income” mean the
23same as defined in section 425.17.
246. “Owned” means owned by an owner as defined in section
25425.11.
26 Sec. 3. NEW SECTION. 425B.3 Right to file a claim.
27The right to file a claim for a homestead adjustment
28credit under this chapter may be exercised by the claimant
29or on behalf of a claimant by the claimant’s legal guardian,
30spouse, or attorney, or by the executor or administrator of the
31claimant’s estate. If a claimant dies after having filed a
32claim for a credit, the amount of the credit shall be made as if
33the claimant had not died. Only one claimant per household per
34fiscal year shall be entitled to a credit under this chapter.
35 Sec. 4. NEW SECTION. 425B.4 Claim for credit.
-1- 11. Subject to the limitations provided in this chapter, a
2claimant may annually claim a homestead adjustment credit for
3the claimant’s homestead for the base assessment year. The
4claim shall be filed with the county assessor for approval
5between January 1 and February 15 immediately following
6the close of the base assessment year. However, in case of
7sickness, absence, or other disability of the claimant, or if
8in the judgment of the county assessor good cause exists, the
9county assessor may extend the time for filing a claim through
10June 30 of the same calendar year.
112. The assessor shall remit the list of approved eligible
12claims to the county auditor by July 6 of each year. All
13eligible claims for credit shall be certified on or before
14August 1, in each year, by the county auditor to the county
15treasurer, which certificates shall list the total number of
16homestead adjustment credits in the county and the total amount
17of all such credits, listed by taxing district in the county.
18The county treasurer shall certify to the department of revenue
19the total amount of dollars, listed by taxing district in the
20county, due for homestead adjustment credits claimed.
21 Sec. 5. NEW SECTION. 425B.5 Credit amount — income
22limitations.
231. If the income qualification specified in subsection 2 is
24met, the amount of the claimant’s homestead adjustment credit
25shall be an amount equal to the amount of property taxes levied
26against the homestead for the base assessment year following
27application of all applicable property tax credits other than
28the homestead adjustment credit minus the amount of property
29taxes levied against the homestead for the assessment year
30preceding the base assessment year following application of all
31property tax credits.
322. A claimant is eligible for a homestead adjustment
33credit against taxes levied on the claimant’s homestead if
34the claimant’s household income is less than thirty thousand
35dollars in the base year.
-2-1 Sec. 6. NEW SECTION. 425B.6 Administration.
21. The director of revenue shall make available suitable
3forms for claiming a homestead adjustment credit with
4instructions for claimants. Each assessor and county treasurer
5shall make available the forms and instructions. The claim
6shall be in a form as the director may prescribe.
72. The homestead adjustment credit fund is created within
8the state treasury under the control of the department of
9revenue. There is appropriated annually from the general
10fund of the state to the department of revenue for deposit
11in the homestead adjustment credit fund an amount sufficient
12to provide all credits authorized under this chapter. The
13director of the department of administrative services shall
14issue warrants on the homestead adjustment credit fund payable
15to the county treasurers of the several counties of the state
16under this chapter. The amount due each county shall be paid
17in two payments on November 15 and March 15 of each fiscal
18year, drawn upon warrants payable to the respective county
19treasurers. The two payments shall be as nearly equal as
20possible.
213. Annually, the department of revenue shall certify to
22the county auditor of each county the credit and its amount
23in dollars. Each county auditor shall then enter the credit
24against the tax levied on each eligible homestead in each
25county payable during the ensuing year, designating on the
26tax lists the credit as being from the homestead adjustment
27credit fund, and credit shall then be given to the several
28taxing districts in which eligible homesteads are located in
29an amount equal to the credits allowed on the taxes of the
30homesteads. The amount of credits shall be apportioned by each
31county treasurer to the several taxing districts as provided
32by law, in the same manner as though the amount of the credit
33had been paid by the owners of the homesteads. However, the
34several taxing districts shall not draw the funds so credited
35until after the semiannual allocations have been received by
-3-1the county treasurer, as provided in this chapter. Each county
2treasurer shall show on each tax receipt the amount of credit
3received from the homestead adjustment credit fund.
4 Sec. 7. NEW SECTION. 425B.7 Proof of claim.
51. Every claimant shall give the department of revenue, in
6support of the claim, reasonable proof of:
7a. Age and total disability, if any.
8b. Changes of homestead.
9c. Size and nature of the property claimed as the homestead.
10d. Household income.
112. The director of revenue may require any additional proof
12necessary to support a claim.
13 Sec. 8. NEW SECTION. 425B.8 Audit — denial.
14If on the audit of a claim for a homestead adjustment credit
15under this chapter, the director of revenue determines the
16claim is not allowable, the director shall notify the claimant
17of the denial and the reasons for it. The director shall
18not deny a claim after three years from October 31 of the
19year in which the claim was filed. The director shall give
20notification to the county assessor of the denial of the claim
21and the county assessor shall instruct the county treasurer to
22proceed to collect the tax that would have been levied on the
23applicable adjusted assessed value in the same manner as other
24property taxes due and payable are collected, if the property
25on which the credit was granted is still owned by the claimant.
26However, if the claim was incorrectly allowed due to a clerical
27error, error by a person other than the claimant, or an
28innocent misrepresentation by or on behalf of the claimant, the
29proceedings to collect the tax shall be limited to the taxes
30due and payable in the twelve months immediately preceding the
31disallowance.
32 Sec. 9. NEW SECTION. 425B.9 Waiver of confidentiality.
331. A claimant shall expressly waive any right to
34confidentiality relating to all income tax information
35obtainable through the department of revenue including all
-4-1information covered by sections 422.20 and 422.72. This waiver
2shall apply to information available to the county assessor who
3shall hold the information confidential except that it may be
4used as evidence to disallow the homestead adjustment credit.
52. The department of revenue may release information
6pertaining to a person’s eligibility or claim for or receipt
7of the credit to an employee of the department of inspections
8and appeals in the employee’s official conduct of an audit or
9investigation.
10 Sec. 10. NEW SECTION. 425B.10 False claim — penalty.
11A person who makes a false affidavit for the purpose of
12obtaining a homestead adjustment credit provided for in this
13chapter or who knowingly receives the credit without being
14legally entitled to it or makes claim for the credit in more
15than one county in the state without being legally entitled
16to it is guilty of a fraudulent practice. The claim for
17credit shall be disallowed in full and if the claim has been
18paid, the amount shall be recovered in the manner provided in
19section 425B.8. The director of revenue shall send a notice
20of disallowance of the claim.
21 Sec. 11. NEW SECTION. 425B.11 Notices, appeals, and
22rules.
23To the extent not otherwise contrary to the provisions of
24this chapter:
251. Section 423.39, subsection 1, shall apply to all notices
26under this chapter.
272. Any person aggrieved by an act or decision of the
28director of revenue or the department of revenue under this
29chapter shall have the same rights of appeal and review as
30provided in section 423.38 and the rules of the department of
31revenue.
323. A claim for credit shall be disallowed if the department
33finds that the claimant or a person of the claimant’s household
34received title to the homestead primarily for the purpose of
35receiving benefits under this chapter.
-5- 14. The department of revenue shall adopt rules pursuant to
2chapter 17A to administer and interpret this chapter, including
3rules to prevent and disallow duplication of benefits and to
4prevent any unreasonable hardship or advantage to any person.
5 Sec. 12. APPLICABILITY. This Act applies retroactively to
6January 1, 2019, for assessment years beginning on or after
7that date and to the filing of claims for homestead adjustment
8credits on or after January 1, 2020.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill establishes a homestead adjustment credit for an
13owner of a homestead if the owner is a person who is either 65
14or older or totally disabled, and who has household income of
15less than $30,000 per year. If the qualifications established
16in the bill are met, the amount of the homestead adjustment
17credit shall be an amount equal to the amount of property taxes
18levied against the homestead for the base assessment year, as
19defined in the bill, following application of all applicable
20property tax credits other than the homestead adjustment credit
21minus the amount of property taxes levied against the homestead
22for the assessment year preceding the base assessment year
23following application of all property tax credits. Only one
24claimant per household per fiscal year may receive the credit
25under the bill.
26The bill annually appropriates from the general fund of the
27state to the department of revenue for deposit in the homestead
28adjustment credit fund, created in the bill, an amount
29sufficient to fund all of the homestead adjustment credits for
30the fiscal year.
31The bill provides that a person who makes a false affidavit
32for the purpose of obtaining a credit, knowingly receives a
33credit without being legally entitled to it, or makes claim for
34a credit in more than one county without being legally entitled
35to it is guilty of a fraudulent practice and is subject to a
-6-1criminal penalty.
2The bill applies retroactively to January 1, 2019, for
3assessment years beginning on or after that date and applies to
4claims filed on or after January 1, 2020, for the credit.
-7-md/jh