Senate Study Bill 1034 - IntroducedA Bill ForAn Act 1establishing a new resident homestead rebate for certain
2individuals relocating to the state, establishing a new
3resident homestead rebate fund, and making appropriations.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  NEW SECTION.  425B.1  New resident homestead
2rebate program.
   3Persons who own their homesteads and who meet the
4qualifications provided in this chapter are eligible for a new
5resident homestead rebate.
6   Sec. 2.  NEW SECTION.  425B.2  Definitions.
   7As used in this chapter, unless the context otherwise
8requires:
   91.  “Base year” means the calendar year last ending before
10the claim is filed.
   112.  “Claimant” means a person filing a claim for a rebate
12under this chapter who resided outside of the state prior to
13filing the claim, who moved to and established a homestead
14in this state on or after January 1, 2021, but before the
15end of the base year, and who was employed in this state for
16an average of twenty hours per week during the base year,
17or during that portion of the year during which the person
18lived in this state, or is the spouse of a person in the same
19household who was employed in this state for an average of
20twenty hours per week during the base year, or during that
21portion of the year during which the person lived in this
22state.
   233.  “Homestead” means the same as defined in section 425.11.
   244.  “Household” means the same as defined in section 425.17.
   255.  “Property taxes paid” means property taxes actually
26paid by the claimant excluding any property tax credit on
27the homestead and any special assessments certified pursuant
28to chapter 384, subchapter IV, and exclusive of delinquent
29interest and charges for services, due on a claimant’s
30homestead in this state, but includes only property taxes for
31which the claimant is liable.
32   Sec. 3.  NEW SECTION.  425B.3  Claiming rebate.
   331.  The right to file a claim for a new resident homestead
34rebate under this chapter may be exercised by the claimant
35or on behalf of a claimant by the claimant’s legal guardian,
-1-1spouse, or attorney, or by the executor or administrator of
2the claimant’s estate. If a claimant dies after having filed
3a claim for a rebate, the amount of the rebate may be paid to
4another member of the household as determined by the department
5of revenue. If the claimant was the only member of the
6household, the rebate may be paid to the claimant’s executor or
7administrator, but if neither is appointed and qualified within
8one year from the date of the filing of the claim, the rebate
9shall escheat to the state.
   102.  a.  Only one claimant per household per year shall
11be entitled to a rebate under this chapter. Subject to the
12limitations in paragraph “b”, a claimant may annually claim
13a rebate for a portion of the property taxes paid on the
14homestead during the base year. A claimant may only establish
15residency once for purposes of eligibility for the rebate under
16this chapter. The director of revenue shall make available
17suitable forms with instructions for claimants. The claim
18shall be in a form as the director may prescribe.
   19b.  The rebate authorized under this chapter shall be
20available to a claimant for the five consecutive years
21following the year the claimant established residency in this
22state if the homestead and employment requirements are met
23during each base year. The amount of the rebate is equal to a
24percent of the property taxes paid, determined as follows:
   25(1)  For the first year, twenty percent.
   26(2)  For the second year, forty percent.
   27(3)  For the third year, sixty percent.
   28(4)  For the fourth year, eighty percent.
   29(5)  For the fifth year, one hundred percent.
   303.  A claim for a rebate shall not be paid or allowed unless
31the claim is filed with the department of revenue between
32January 1 and March 1, both dates inclusive, immediately
33following the base year during which the property taxes
34were paid. However, in case of sickness, absence, or other
35disability of the claimant, or if in the judgment of the
-2-1director of revenue good cause exists, the director of revenue
2may extend the time for filing a claim for rebate through
3June 30 of the same calendar year. A claim for rebate shall
4be disallowed if the department finds that the claimant or
5a person of the claimant’s household received title to the
6homestead primarily for the purpose of receiving benefits under
7this chapter.
   84.  The amount of any rebate payable under this chapter
9may be applied by the department of revenue against any tax
10liability, delinquent accounts, charges, loans, fees, or other
11indebtedness due the state or state agency that has a formal
12agreement with the department of revenue for central debt
13collection, outstanding on the books of the department against
14the claimant, or against a spouse who was a member of the
15claimant’s household in the base year.
16   Sec. 4.  NEW SECTION.  425B.4  Proof of claim.
   171.  Every claimant shall give the department of revenue, in
18support of the claim, reasonable proof of:
   19a.  Date of establishing residency in this state.
   20b.  Ownership of the property claimed as homestead or changes
21in homestead.
   22c.  Property taxes paid during base year.
   23d.  Household membership.
   24e.  Employment hours during base year.
   252.  The department may require any additional proof
26necessary to support a claim.
27   Sec. 5.  NEW SECTION.  425B.5  Audit — recalculation or
28denial — appeals.
   29If on the audit of a claim for rebate under this chapter,
30the department of revenue determines the amount of the claim
31to have been incorrectly calculated or that the claim is not
32allowable, the department shall recalculate the claim and
33notify the claimant of the recalculation or denial and the
34reasons for it. The recalculation of the claim shall be final
35unless appealed to the director within thirty days from the
-3-1date of notice of recalculation or denial. The director shall
2grant a hearing, and upon hearing, determine the correct claim,
3if any, and notify the claimant of the decision by mail. The
4department of revenue shall not adjust a claim after three
5years from October 31 of the year in which the claim was filed.
6If the rebate has been paid, the amount may be recovered by
7assessment in the same manner that income taxes are assessed
8under sections 422.26 and 422.30. The decision of the director
9shall be final unless appealed as provided in section 425B.7,
10subsection 2. Section 422.70 applies with respect to this
11chapter.
12   Sec. 6.  NEW SECTION.  425B.6  False claim — penalty.
   13A person who makes a false affidavit for the purpose of
14obtaining the rebate provided for in this chapter or who
15knowingly receives the rebate without being legally entitled
16to it is guilty of a fraudulent practice. The claim for rebate
17shall be disallowed in full and if the rebate has been paid,
18the amount shall be recovered in the manner provided in section
19425B.5. The department of revenue may impose penalties under
20section 421.27. The department of revenue shall send a notice
21of disallowance of the claim.
22   Sec. 7.  NEW SECTION.  425B.7  Notices, appeals, and rules.
   231.  Section 423.39, subsection 1, shall apply to all notices
24under this chapter.
   252.  Any person aggrieved by an act or decision of the
26director of revenue or the department of revenue under this
27chapter shall have the same rights of appeal and review as
28provided in section 423.38 and the rules of the department of
29revenue.
   303.  The director of revenue shall adopt rules in
31accordance with chapter 17A for the interpretation and proper
32administration of this chapter, including rules to prevent
33and disallow duplication of benefits and to prevent any
34unreasonable hardship or advantage to any person.
35   Sec. 8.  NEW SECTION.  425B.8  Fund created — appropriation.
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   1The new resident homestead rebate fund is created. There
2is appropriated annually from the general fund of the state to
3the department of revenue to be credited to the new resident
4homestead rebate fund, from funds not otherwise appropriated,
5an amount sufficient to implement this chapter and make
6payments for all rebates claimed.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
   10This bill establishes a new resident homestead rebate for
11certain individuals who relocate to the state, maintain a
12homestead, and meet certain employment requirements. A person
13who moved to and established a homestead in this state on or
14after January 1, 2021, but before the end of the base year, as
15defined in the bill, and who was employed in this state for an
16average of 20 hours per week during the base year, or during
17that portion of the year during which the person lived in this
18state, or is the spouse of a person in the same household who
19satisfies this employment requirement, is eligible for the
20rebate. The criteria for determining a “homestead” is the same
21as is required for the homestead property tax credit under Code
22chapter 425.
   23Only one claimant per household per year is entitled to
24a rebate under the bill. Additionally, a claimant may only
25establish residency once for purposes of eligibility for the
26rebate under the bill. A claimant may annually claim a rebate
27for a portion of the property taxes paid on the homestead
28during the base year. “Property taxes paid” is defined in
29the bill to be property taxes actually paid by the claimant
30excluding any property tax credit on the homestead and any
31special assessments certified pursuant to Code chapter 384,
32subchapter IV, and exclusive of delinquent interest and charges
33for services, due on a claimant’s homestead in this state, but
34includes only property taxes for which the claimant is liable.
   35The rebate authorized in the bill is available to a claimant
-5-1for the five consecutive years following the establishment
2of residency in this state if the homestead and employment
3requirements are met during each base year. The amount of
4the rebate is equal to a percent of the property taxes paid,
5determined as follows: for the first year, 20 percent; for
6the second year, 40 percent; for the third year, 60 percent;
7for the fourth year, 80 percent; and for the fifth year, 100
8percent.
   9A claim for a rebate shall not be paid or allowed unless the
10claim is filed with the department of revenue between January
111 and March 1, both dates inclusive, immediately following
12the base year during which the property taxes were paid. The
13bill authorizes the amount of any rebate to be applied by the
14department of revenue against any tax liability, delinquent
15accounts, charges, loans, fees, or other indebtedness due the
16state or state agency that has a formal agreement with the
17department of revenue for central debt collection, outstanding
18on the books of the department against the claimant, or against
19a spouse who was a member of the claimant’s household in the
20base year.
   21The bill establishes provisions relating to the audit of
22rebate claims and the collection of improperly paid rebates. A
23person who makes a false affidavit for the purpose of obtaining
24the rebate or who knowingly receives the rebate without being
25legally entitled to it is guilty of a fraudulent practice.
   26The bill establishes a new resident homestead rebate
27fund. The bill appropriates annually from the general fund
28of the state to the department of revenue to be credited to
29the new resident homestead rebate fund an amount sufficient
30to implement the program and make payments for all rebates
31claimed.
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