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House Study Bill 120 - IntroducedA Bill ForAn Act 1relating to the administration of the reimbursement for
2rent constituting property taxes paid and related matters
3and including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 331.559, subsection 12, Code 2021, is
2amended to read as follows:
312. Carry out duties relating to the administration of the
4homestead tax credit and other credits as provided in sections
5425.4, 425.5, 425.7, 425.9, 425.10, and 425.25.
6 Sec. 2. Section 425.1, subsections 1, 4, and 6, Code 2021,
7are amended to read as follows:
81. a. A homestead credit fund is created. There is
9appropriated annually from the general fund of the state to
10the department of revenue to be credited to the homestead
11credit fund, an amount sufficient to implement this chapter
12 subchapter.
13b. The director of the department of administrative services
14shall issue warrants on the homestead credit fund payable to
15the county treasurers of the several counties of the state
16under this chapter subchapter.
174. Annually the department of revenue shall certify to
18the county auditor of each county the credit and its amount
19in dollars. Each county auditor shall then enter the credit
20against the tax levied on each eligible homestead in each
21county payable during the ensuing year, designating on the tax
22lists the credit as being from the homestead credit fund, and
23credit shall then be given to the several taxing districts in
24which eligible homesteads are located in an amount equal to the
25credits allowed on the taxes of the homesteads. The amount of
26credits shall be apportioned by each county treasurer to the
27several taxing districts as provided by law, in the same manner
28as though the amount of the credit had been paid by the owners
29of the homesteads. However, the several taxing districts shall
30not draw the funds so credited until after the semiannual
31allocations have been received by the county treasurer, as
32provided in this chapter subchapter. Each county treasurer
33shall show on each tax receipt the amount of credit received
34from the homestead credit fund.
356. The homestead tax credit allowed in this chapter
-1-1 subchapter shall not exceed the actual amount of taxes payable
2on the eligible homestead, exclusive of any special assessments
3levied against the homestead.
4 Sec. 3. Section 425.2, subsections 1 and 3, Code 2021, are
5amended to read as follows:
61. A person who wishes to qualify for the homestead
7 credit allowed under this chapter subchapter shall obtain the
8appropriate forms for filing for the credit from the assessor.
9The person claiming the credit shall file a verified statement
10and designation of homestead with the assessor for the year for
11which the person is first claiming the credit. The claim shall
12be filed not later than July 1 of the year for which the person
13is claiming the credit. A claim filed after July 1 of the year
14for which the person is claiming the credit shall be considered
15as a claim filed for the following year.
163. In case the owner of the homestead is in active service
17in the armed forces of this state or of the United States, or is
18sixty-five years of age or older, or is disabled, the statement
19and designation may be signed and delivered by any member of
20the owner’s family, by the owner’s guardian or conservator, or
21by any other person who may represent the owner under power
22of attorney. If the owner of the homestead is married, the
23spouse may sign and deliver the statement and designation. The
24director of human services or the director’s designee may make
25application for the benefits of this chapter subchapter as the
26agent for and on behalf of persons receiving assistance under
27chapter 249.
28 Sec. 4. Section 425.6, Code 2021, is amended to read as
29follows:
30425.6 Waiver by neglect.
31If a person fails to file a claim or to have a claim on file
32with the assessor for the credits provided in this chapter
33 subchapter, the person is deemed to have waived the homestead
34credit for the year in which the person failed to file the
35claim or to have a claim on file with the assessor.
-2-1 Sec. 5. Section 425.7, subsections 1 and 2, Code 2021, are
2amended to read as follows:
31. Any person whose claim is denied under the provisions of
4this chapter subchapter may appeal from the action of the board
5of supervisors to the district court of the county in which
6said claimed homestead is situated by giving written notice of
7such appeal to the county auditor of said county within twenty
8days from the date of mailing of notice of such action by the
9board of supervisors.
102. In the event any claim under this chapter subchapter is
11allowed, any owner of an eligible homestead may appeal from the
12action of the board of supervisors to the district court of the
13county in which said claimed homestead is situated, by giving
14written notice of such appeal to the county auditor of said
15county and such notice to the owner of said claimed homestead
16as a judge of the district court shall direct.
17 Sec. 6. Section 425.8, Code 2021, is amended to read as
18follows:
19425.8 Forms — rules.
201. The director of revenue shall prescribe the form
21for the making of a verified statement and designation of
22homestead, the form for the supporting affidavits required
23herein, and such other forms as may be necessary for the proper
24administration of this chapter subchapter. Whenever necessary,
25the department of revenue shall forward to the county auditors
26of the several counties in the state the prescribed sample
27forms, and the county auditors shall furnish blank forms
28prepared in accordance therewith with the assessment rolls,
29books, and supplies delivered to the assessors. The department
30of revenue shall prescribe and the county auditors shall
31provide on the forms for claiming the homestead credit a
32statement to the effect that the owner realizes that the owner
33must give written notice to the assessor when the owner changes
34the use of the property.
352. The director of revenue may prescribe rules, not
-3-1inconsistent with the provisions of this chapter subchapter,
2necessary to carry out and effectuate its purposes.
3 Sec. 7. Section 425.9, subsection 1, Code 2021, is amended
4to read as follows:
51. If the amount of credit apportioned to any homestead
6under the provisions of this chapter subchapter in any
7year shall exceed the total tax, exclusive of any special
8assessments levied against said homestead, then such excess
9shall be remitted by the county treasurer to the department of
10revenue to be redeposited in the homestead credit fund and be
11reallocated the following year by the department as provided in
12this chapter subchapter.
13 Sec. 8. Section 425.10, Code 2021, is amended to read as
14follows:
15425.10 Reversal of allowed claim.
16In the event any claim is allowed, and subsequently reversed
17on appeal, any credit made thereunder shall be void, and the
18amount of such credit shall be charged against the property in
19question, and the director of revenue, the county auditor, and
20the county treasurer are authorized and directed to correct
21their books and records accordingly. The amount of such
22erroneous credit, when collected, shall be returned by the
23county treasurer to the homestead credit fund to be reallocated
24the following year as provided in this chapter subchapter.
25 Sec. 9. Section 425.11, subsection 1, unnumbered paragraph
261, Code 2021, is amended to read as follows:
27For the purpose of this chapter subchapter and wherever used
28in this chapter subchapter:
29 Sec. 10. Section 425.11, subsection 1, paragraph d,
30subparagraph (3), Code 2021, is amended to read as follows:
31(3) It must not embrace more than one dwelling house, but
32where a homestead has more than one dwelling house situated
33thereon, the credit provided for in this chapter subchapter
34 shall apply to the home and buildings used by the owner, but
35shall not apply to any other dwelling house and buildings
-4-1appurtenant.
2 Sec. 11. Section 425.11, subsection 1, paragraph e, Code
32021, is amended to read as follows:
4e. “Owner” means the person who holds the fee simple
5title to the homestead, and in addition shall mean the person
6occupying as a surviving spouse or the person occupying under
7a contract of purchase which contract has been recorded in
8the office of the county recorder of the county in which the
9property is located; or the person occupying the homestead
10under devise or by operation of the inheritance laws where
11the whole interest passes or where the divided interest is
12shared only by persons related or formerly related to each
13other by blood, marriage or adoption; or the person occupying
14the homestead is a shareholder of a family farm corporation
15that owns the property; or the person occupying the homestead
16under a deed which conveys a divided interest where the divided
17interest is shared only by persons related or formerly related
18to each other by blood, marriage or adoption; or where the
19person occupying the homestead holds a life estate with the
20reversion interest held by a nonprofit corporation organized
21under chapter 504, provided that the holder of the life estate
22is liable for and pays property tax on the homestead; or where
23the person occupying the homestead holds an interest in a
24horizontal property regime under chapter 499B, regardless
25of whether the underlying land committed to the horizontal
26property regime is in fee or as a leasehold interest, provided
27that the holder of the interest in the horizontal property
28regime is liable for and pays property tax on the homestead;
29or where the person occupying the homestead is a member of a
30community land trust as defined in 42 U.S.C. §12773, regardless
31of whether the underlying land is in fee or as a leasehold
32interest, provided that the member of the community land
33trust is occupying the homestead and is liable for and pays
34property tax on the homestead. For the purpose of this chapter
35 subchapter the word “owner” shall be construed to mean a bona
-5-1fide owner and not one for the purpose only of availing the
2person of the benefits of this chapter subchapter. In order
3to qualify for the homestead tax credit, evidence of ownership
4shall be on file in the office of the clerk of the district
5court or recorded in the office of the county recorder at the
6time the owner files with the assessor a verified statement
7of the homestead claimed by the owner as provided in section
8425.2.
9 Sec. 12. Section 425.12, Code 2021, is amended to read as
10follows:
11425.12 Indian land.
12Each forty acres of land, or fraction thereof, occupied by
13a member or members of the Sac and Fox Indians in Tama county,
14which land is held in trust by the secretary of the interior of
15the United States for said Indians, shall be given a homestead
16tax credit within the meaning and under the provisions of this
17chapter subchapter. Application for such homestead tax credit
18shall be made to the county auditor of Tama county and may be
19made by a representative of the tribal council.
20 Sec. 13. Section 425.13, Code 2021, is amended to read as
21follows:
22425.13 Conspiracy to defraud.
23If any two or more persons conspire and confederate together
24with fraudulent intent to obtain the credit provided for under
25the terms of this chapter subchapter by making a false deed, or
26a false contract of purchase, they are guilty of a fraudulent
27practice.
28 Sec. 14. Section 425.15, subsection 1, unnumbered paragraph
291, Code 2021, is amended to read as follows:
30If the owner of a homestead allowed a credit under this
31chapter subchapter is any of the following, the credit allowed
32on the homestead from the homestead credit fund shall be the
33entire amount of the tax levied on the homestead:
34 Sec. 15. Section 425.16, Code 2021, is amended to read as
35follows:
-6- 1425.16 Additional tax credit.
21. In addition to the homestead tax credit allowed under
3section 425.1, subsections 1 through 4, persons who own or rent
4their homesteads and who meet the qualifications provided in
5this subchapter are eligible for an extraordinary a property
6tax credit or property taxes due or reimbursement of rent
7constituting property taxes paid.
82. a. The property tax credit for property taxes due under
9this subchapter shall be administered by the department of
10revenue, the assessor, and other county officials as provided
11in this subchapter.
12b. The reimbursement of rent constituting property taxes
13paid under this subchapter shall be administered by the
14department of human services as provided in this subchapter.
15 Sec. 16. Section 425.17, subsection 3, Code 2021, is amended
16to read as follows:
173. “Gross rent” means rental paid at arm’s length for the
18right of occupancy of a homestead or manufactured or mobile
19home, including rent for space occupied by a manufactured
20or mobile home not to exceed one acre. If the department
21of revenue human services determines that the landlord and
22tenant have not dealt with each other at arm’s length, and
23the department of revenue human services is satisfied that
24the gross rent charged was excessive, the department of human
25services shall adjust the gross rent to a reasonable amount as
26determined by the department of human services.
27 Sec. 17. Section 425.18, Code 2021, is amended to read as
28follows:
29425.18 Right to file a claim.
30The right to file a claim for reimbursement or credit under
31this subchapter may be exercised by the claimant or on behalf
32of a claimant by the claimant’s legal guardian, spouse, or
33attorney, or by the executor or administrator of the claimant’s
34estate. If a claimant dies after having filed a claim for
35reimbursement for rent constituting property taxes paid, the
-7-1amount of the reimbursement may be paid to another member of
2the household as determined by the department of revenue of
3human services. If the claimant was the only member of the
4household, the reimbursement may be paid to the claimant’s
5executor or administrator, but if neither is appointed and
6qualified within one year from the date of the filing of
7the claim, the reimbursement shall escheat to the state. If
8a claimant dies after having filed a claim for credit for
9property taxes due, the amount of credit shall be paid as if
10the claimant had not died.
11 Sec. 18. Section 425.19, Code 2021, is amended to read as
12follows:
13425.19 Claim and credit or reimbursement.
14Subject to the limitations provided in this subchapter, a
15claimant may annually claim a credit for property taxes due
16during the fiscal year next following the base year or claim
17a reimbursement for rent constituting property taxes paid in
18the base year. The amount of the credit for property taxes due
19for a homestead shall be paid on June 15 of each year from the
20elderly and disabled property tax credit fund under section
21425.39, subsection 1, by the director of revenue to the county
22treasurer who shall credit the money received against the
23amount of the property taxes due and payable on the homestead
24of the claimant and the amount of the reimbursement for rent
25constituting property taxes paid shall be paid by the director
26of human services to the claimant from the state general
27 reimbursement fund under section 425.39, subsection 2, on or
28before December 31 of each year.
29 Sec. 19. Section 425.20, subsections 1 and 3, Code 2021, are
30amended to read as follows:
311. A claim for reimbursement for rent constituting property
32taxes paid shall not be paid or allowed, unless the claim is
33filed with and in the possession of the department of revenue
34 human services on or before June 1 of the year following the
35base year.
-8- 13. In case of sickness, absence, or other disability of
2the claimant or if, in the judgment of the director of revenue
3or the director of human services, as applicable, good cause
4exists and the claimant requests an extension, the director
5of human services may extend the time for filing a claim for
6reimbursement or and the director of revenue may extend the
7time for filing a claim for credit. However, any further
8time granted shall not extend beyond December 31 of the year
9following the year in which the claim was required to be filed.
10Claims filed as a result of this subsection shall be filed with
11the director of human services or the director of revenue, as
12applicable, who shall provide for the reimbursement of the
13claim to the claimant.
14 Sec. 20. Section 425.23, subsection 3, paragraph a, Code
152021, is amended to read as follows:
16a. A person who is eligible to file a claim for credit
17for property taxes due and who has a household income of
18eight thousand five hundred dollars or less and who has
19an unpaid special assessment levied against the homestead
20may file a claim for a special assessment credit with the
21county treasurer. The department of revenue shall provide
22to the respective treasurers the forms necessary for the
23administration of this subsection. The claim shall be filed
24not later than September 30 of each year. Upon the filing of
25the claim, interest for late payment shall not accrue against
26the amount of the unpaid special assessment due and payable.
27The claim filed by the claimant constitutes a claim for credit
28of an amount equal to the actual amount due upon the unpaid
29special assessment, plus interest, payable during the fiscal
30year for which the claim is filed against the homestead of
31the claimant. However, where the claimant is an individual
32described in section 425.17, subsection 2, paragraph “a”,
33subparagraph (2), and the tentative credit is determined
34according to the schedule in subsection 1, paragraph “b”,
35subparagraph (2), of this section, the claim filed constitutes
-9-1a claim for credit of an amount equal to one-half of the actual
2amount due and payable during the fiscal year. The treasurer
3shall certify to the director of revenue not later than October
415 of each year the total amount of dollars due for claims
5allowed. The amount of reimbursement due each county shall be
6certified by the director of revenue and paid by the director
7of the department of administrative services by November 15
8of each year, drawn upon warrants payable to the respective
9treasurer. There is appropriated annually from the general
10fund of the state to the department of revenue an amount
11sufficient to carry out the provisions of this subsection. The
12treasurer shall credit any moneys received from the department
13of revenue against the amount of the unpaid special assessment
14due and payable on the homestead of the claimant.
15 Sec. 21. Section 425.23, subsection 4, Code 2021, is amended
16by adding the following new paragraph:
17 NEW PARAGRAPH. c. The cumulative adjustment factor shall be
18determined annually by the department of revenue.
19 Sec. 22. Section 425.25, Code 2021, is amended to read as
20follows:
21425.25 Administration — claim forms.
221. The director of revenue shall make available suitable
23forms with instructions for claimants of the credit for
24property taxes due. Each assessor and county treasurer shall
25make available the forms and instructions. The claim shall
26be in a form as the director of revenue may prescribe. The
27director may shall also devise a tax credit or reimbursement
28 table, with amounts rounded to the nearest even whole dollar.
29Reimbursements or credits Credits in the amount of less than
30one dollar shall not be paid.
312. The director of human services shall make available
32suitable forms with instructions for claimants of the
33reimbursement for rent constituting property taxes paid. The
34claim shall be in a form as the director of human services
35may prescribe. The director of revenue shall devise a
-10-1reimbursement table with amounts rounded to the nearest even
2whole dollar and provide such table to the director of human
3services. Reimbursements in the amount of less than one dollar
4shall not be paid.
5 Sec. 23. Section 425.26, Code 2021, is amended to read as
6follows:
7425.26 Proof of claim.
81. Every claimant for the credit for property taxes due
9 shall give the department of revenue, in support of the claim,
10reasonable proof of:
11a. Age and total disability, if any.
12b. Property taxes due or rent constituting property taxes
13paid, including the name and address of the owner or manager
14of the property rented and a statement whether the claimant is
15related by blood, marriage, or adoption to the owner or manager
16of the property rented.
17c. Homestead credit allowed against property taxes due.
18d. Changes of homestead.
19e. Household membership.
20f. Household income.
21g. Size and nature of property claimed as the homestead.
222. Every claimant for reimbursement of rent constituting
23property taxes paid shall give the department of human
24services, in support of the claim, reasonable proof of:
25a. Age and total disability, if any.
26b. Rent constituting property taxes paid, including the name
27and address of the owner or manager of the property rented and
28a statement whether the claimant is related by blood, marriage,
29or adoption to the owner or manager of the property rented.
30c. Changes of homestead.
31d. Household membership.
32e. Household income.
33f. Size and nature of property claimed as the homestead.
342. 3. The department of revenue or the department of human
35services may require any additional proof necessary to support
-11-1a claim.
2 Sec. 24. Section 425.27, Code 2021, is amended to read as
3follows:
4425.27 Audit — recalculation or denial — appeals.
51. a. The department of revenue is responsible for the
6audit of claims for credit of property taxes due under this
7subchapter.
8b. The department of human services is responsible for
9the audit of claims for reimbursement for rent constituting
10property taxes paid under this subchapter.
112. If on the audit of a claim for credit or reimbursement
12 under this subchapter, the department of revenue determines
13the amount of the claim to have been incorrectly calculated
14or that the claim is not allowable, the department of revenue
15 shall recalculate the claim and notify the claimant of
16the recalculation or denial and the reasons for it. The
17recalculation of the claim shall be final unless appealed to
18the director of revenue within thirty days from the date of
19notice of recalculation or denial. The director of revenue
20 shall grant a hearing, and upon hearing determine the correct
21claim, if any, and notify the claimant of the decision by mail.
22The department of revenue shall not adjust a claim after three
23years from October 31 of the year in which the claim was filed.
24If the claim for reimbursement has been paid, the amount may be
25recovered by assessment in the same manner that income taxes
26are assessed under sections 422.26 and 422.30. If the claim
27for credit has been paid, the department of revenue shall give
28notification to the claimant and the county treasurer of the
29recalculation or denial of the claim and the county treasurer
30shall proceed to collect the tax owed in the same manner as
31other property taxes due and payable are collected, if the
32property on which the credit was granted is still owned by the
33claimant, and repay the amount to the director upon collection.
34If the property on which the credit was granted is not owned by
35the claimant, the amount may be recovered from the claimant by
-12-1assessment in the same manner that income taxes are assessed
2under sections 422.26 and 422.30. The decision of the director
3of revenue shall be final unless appealed as provided in
4section 425.31.
53. If on the audit of a claim for reimbursement for rent
6constituting property taxes paid under this subchapter, the
7department of human services determines the amount of the claim
8to have been incorrectly calculated or that the claim is not
9allowable, the department of human services shall recalculate
10the claim and notify the claimant of the recalculation or
11denial and the reasons for it. The recalculation of the
12claim shall be final unless appealed to the director of
13human services within thirty days from the date of notice of
14recalculation or denial. The director of human services shall
15grant a hearing, and upon hearing determine the correct claim,
16if any, and notify the claimant of the decision by mail. The
17department of human services shall not adjust a claim after
18three years from October 31 of the year in which the claim
19was filed. If the claim for reimbursement has been paid, the
20amount may be recovered by the department of human services.
21The decision of the director of human services shall be final
22unless appealed as provided in section 425.31.
234. a. Section For the purpose of administering the credit
24for property taxes due, including the duties of the director
25of revenue and the department of revenue, section 422.70 is
26applicable with respect to this subchapter.
27b. For the purpose of administering the reimbursement for
28rent constituting property taxes paid, including the duties
29of the director of human services and the department of human
30services under this subchapter, the director of human services
31shall have the same powers as those described in section
32422.70.
33 Sec. 25. Section 425.28, Code 2021, is amended to read as
34follows:
35425.28 Waiver of confidentiality.
-13- 11. A claimant for the credit for property taxes due shall
2expressly waive any right to confidentiality relating to all
3income tax information obtainable through the department of
4revenue, including all information covered by sections 422.20
5and 422.72. This waiver shall apply to information available
6to the county treasurer who shall hold the information
7confidential except that it may be used as evidence to disallow
8the credit.
92. A claimant for reimbursement of rent constituting
10property taxes paid shall expressly waive any right to
11confidentiality relating to all income tax information
12obtainable by the department of human services.
133. For the effective administration of this subchapter,
14the department of revenue and the department of human services
15shall share information obtained by each department from
16claimants under this subchapter.
172. 4. The In addition to the sharing of information under
18subsection 3, the department of revenue human services may
19release information pertaining to a person’s eligibility or
20claim for or receipt of rent reimbursement to an employee of
21the department of inspections and appeals in the employee’s
22official conduct of an audit or investigation.
23 Sec. 26. Section 425.29, Code 2021, is amended to read as
24follows:
25425.29 False claim — penalty.
261. A person who makes a false affidavit for the purpose
27of obtaining credit or reimbursement provided for in
28this subchapter or who knowingly receives the credit or
29reimbursement without being legally entitled to it or makes
30claim for the credit or reimbursement in more than one county
31in the state without being legally entitled to it is guilty of
32a fraudulent practice. The claim for credit or reimbursement
33shall be disallowed in full and if the claim has been paid the
34amount shall be recovered in the manner provided in section
35425.27.
-14- 12. The In the case of a claim for credit disallowed by the
2 department of revenue, the department of revenue may impose
3penalties under section 421.27. The department of revenue
4shall send a notice of disallowance of the claim.
53. In the case of a claim for reimbursement disallowed
6by the department of human services, the department of human
7services may impose penalties described in section 421.27.
8The department of human services shall send a notice of
9disallowance of the claim.
10 Sec. 27. Section 425.30, Code 2021, is amended by striking
11the section and inserting in lieu thereof the following:
12425.30 Notices.
131. A notice authorized or required under this subchapter
14related to a credit for property taxes due may be given by
15mailing the notice to the person for whom it is intended,
16addressed to that person at the address given in the last
17credit claim form filed by the person pursuant to this
18subchapter, or if no return has been filed, then to any address
19obtainable.
202. A notice authorized or required under this subchapter
21related to a reimbursement for rent constituting property taxes
22paid may be given by mailing the notice to the person for whom
23it is intended, addressed to that person at the address given
24in the reimbursement claim form filed by the person pursuant
25to this subchapter, or if no return has been filed, then to any
26address obtainable.
273. The mailing of the notice is presumptive evidence of the
28receipt of the notice by the person to whom addressed. Any
29period of time which is determined according to this subchapter
30by the giving of notice commences to run from the date of
31mailing of the notice.
32 Sec. 28. Section 425.31, Code 2021, is amended by striking
33the section and inserting in lieu thereof the following:
34425.31 Appeals.
351. Judicial review of the actions of the director of revenue
-15-1or the department of revenue under this subchapter may be
2sought in accordance with the terms of chapter 17A and the
3rules of the department of revenue.
42. Judicial review of the actions of the director of
5human services or the department of human services under this
6subchapter may be sought in accordance with the terms of
7chapter 17A and the rules of the department of human services.
83. For cause and upon a showing by the director of revenue
9or the director of human services, as applicable, that
10collection of the amount in dispute is in doubt, the court may
11order the petitioner to file with the clerk a bond for the use
12of the respondent, with sureties approved by the clerk, equal
13to the amount appealed from, conditioned that the petitioner
14shall perform the orders of the court.
154. An appeal may be taken by the claimant or the director
16of revenue or the director of human services, as applicable,
17to the supreme court of this state irrespective of the amount
18involved.
19 Sec. 29. Section 425.32, Code 2021, is amended to read as
20follows:
21425.32 Disallowance of certain claims for credit.
22A claim for credit for property taxes due shall be disallowed
23if the department of revenue finds that the claimant or a
24person of the claimant’s household received title to the
25homestead primarily for the purpose of receiving benefits under
26this subchapter.
27 Sec. 30. Section 425.33, Code 2021, is amended to read as
28follows:
29425.33 Rent increase — request and order for reduction.
301. If upon petition by a claimant the department of revenue
31 human services determines that a landlord has increased the
32claimant’s rent primarily because the claimant is eligible for
33reimbursement under this subchapter, the department of revenue
34 human services shall request the landlord by mail to reduce the
35rent appropriately.
-16- 12. In determining whether a landlord has increased a
2claimant’s rent primarily because the claimant is eligible for
3reimbursement under this subchapter, the department of revenue
4 human services shall consider the following factors:
5a. The amount of the increase in rent.
6b. If the landlord operates other rental property, whether a
7similar increase was imposed on the other rental property.
8c. Increased or decreased costs of materials, supplies,
9services, and taxes in the area.
10d. The time the rent was increased.
11e. Other relevant factors in each particular case.
123. If the landlord fails to comply with the request of
13the department of revenue human services within fifteen days
14after the request is mailed by the department, the department
15of revenue human services shall order the rent reduced by an
16appropriate amount.
17 Sec. 31. Section 425.34, Code 2021, is amended to read as
18follows:
19425.34 Hearings Rent increase hearings and appeals.
201. If the department of revenue human services orders a
21landlord to reduce rent to a claimant, then upon the request
22of the landlord the department of revenue human services
23 shall hold a prompt hearing of the matter, to be conducted in
24accordance with the rules of the department. The department
25of revenue human services shall give notice of the decision by
26mail to the claimant and to the landlord.
272. The claimant and the landlord shall have the rights of
28appeal and review as provided in section 425.31.
29 Sec. 32. Section 425.37, Code 2021, is amended to read as
30follows:
31425.37 Rules.
32The director of revenue and the director of human services
33 shall each adopt rules in accordance with chapter 17A for the
34interpretation and proper administration of this subchapter
35and each department’s applicable powers and duties under this
-17-1subchapter, including rules to prevent and disallow duplication
2of benefits and to prevent any unreasonable hardship or
3advantage to any person.
4 Sec. 33. Section 425.39, Code 2021, is amended to read as
5follows:
6425.39 Fund Funds created — appropriation appropriations —
7priority.
81. The elderly and disabled property tax credit and
9reimbursement fund is created. There is appropriated annually
10from the general fund of the state to the department of revenue
11to be credited to the elderly and disabled property tax credit
12and reimbursement fund, from funds not otherwise appropriated,
13an amount sufficient to implement this subchapter for credits
14for property taxes due for claimants described in section
15425.17, subsection 2, paragraph “a”, subparagraph (1).
162. The elderly and disabled rent reimbursement fund is
17created. There is appropriated annually from the general fund
18of the state to the department of human services to be credited
19to the elderly and disabled rent reimbursement fund, from funds
20not otherwise appropriated, an amount sufficient to implement
21this subchapter for reimbursement for rent constituting
22property taxes paid for claimants described in section 425.17,
23subsection 2, paragraph “a”, subparagraph (1).
24 Sec. 34. Section 425.40, Code 2021, is amended to read as
25follows:
26425.40 Low-income fund created.
271. A low-income tax credit and reimbursement fund is
28created. Within the low-income tax credit and reimbursement
29fund, a rent reimbursement account is created under the control
30of the department of human services and a tax credit account
31is created under the control of the department of revenue.
32Amounts appropriated to the fund shall first be credited to the
33reimbursement account.
342. a. If The director of human services shall use amounts
35credited to the rent reimbursement account for a fiscal year
-18-1to pay all claims for reimbursement of rent constituting
2property taxes paid for claimants described in section 425.17,
3subsection 2, paragraph “a”, subparagraph (2). If the amount
4appropriated for purposes of this section for a fiscal year and
5credited to the rent reimbursement account is insufficient to
6pay all claims in full, the director of human services shall
7pay, in full, all claims to be paid during the fiscal year
8for reimbursement of rent constituting property taxes paid or
9if moneys are insufficient to pay all such claims on a pro
10rata basis. If the amount of claims for credit for property
11taxes due to be paid during the fiscal year exceed the amount
12remaining after payment to renters, the director of revenue
13shall prorate the payments to the counties for the property tax
14credit.
15b. If the amount appropriated for purposes of this section
16for a fiscal year and credited to the rent reimbursement
17account exceeds the amount necessary to pay in full all
18reimbursement claims for the fiscal year, the department
19of human services shall transfer such excess amount to the
20department of revenue for deposit in the tax credit account.
21The department of revenue shall use any amounts credited to the
22tax credit account for a fiscal year to pay to the counties all
23claims for credit for property taxes due for the fiscal year,
24or if such amount is insufficient, to pay to the counties all
25such claims on a pro rata basis.
263. In order for the director of revenue or the director of
27human services to carry out the requirements of this subsection
282, notwithstanding any provision to the contrary in this
29subchapter, claims for reimbursement for rent constituting
30property taxes paid filed before May 1 of the fiscal year
31shall be eligible to be paid in full during the fiscal year
32and those claims filed on or after May 1 of the fiscal year
33shall be eligible to be paid during the following fiscal year
34and the director of revenue is not required to make payments
35to counties for the property tax credit before June 15 of the
-19-1fiscal year.
2 Sec. 35. TRANSITION PROVISION — ADMINISTRATIVE RULES. The
3department of revenue shall continue to administer that
4portion of chapter 425, subchapter II, relating to claims for
5reimbursement of rent constituting property taxes paid until
6the department of human services has adopted rules to assume
7such administration as provided in this Act, but not later than
8January 1, 2022.
9 Sec. 36. EFFECTIVE DATE. This Act, being deemed of
10immediate importance, takes effect upon enactment.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14Current Code chapter 425, subchapter II, provides a
15property tax credit or rent reimbursement for certain elderly
16and disabled persons in addition to the homestead property
17tax credit. Current Code chapter 425, subchapter II, also
18establishes a similar property tax credit or reimbursement
19for rent constituting property taxes paid for persons who are
2023 years of age or older or who are a head of household, but
21who have not attained the age of 65 or incurred the requisite
22disability status. The provision of these credits is triggered
23by an appropriation to and payment from the low-income tax
24credit and reimbursement fund established in Code section
25425.40. The department of revenue administers the property tax
26credit and rent reimbursement programs under Code chapter 425,
27subchapter II.
28This bill transfers responsibility for administration of
29the claims for rent constituting property taxes paid to the
30department of revenue and modifies various provisions of Code
31chapter 425, subchapter II, and enacts several provisions
32applicable to the department of human services and the director
33of human services that are similar to those applicable to the
34department of revenue and the director of revenue regarding
35administration of the claims for property taxes due, over which
-20-1the department of revenue will retain administrative control.
2The bill provides for the creation of two separate funds
3in lieu of the elderly and disabled property tax credit and
4reimbursement fund under current Code section 425.39 and
5modifies the structure of the low-income fund under Code
6section 425.40 to include a tax credit account under the
7control of the department of revenue and a rent reimbursement
8account under the control of the department of human services.
9The bill also changes several references to “this chapter”
10within Code chapter 425, subchapter I, to reflect the
11provisions’ applicability.
12The bill takes effect upon enactment.
13Under the bill, the department of revenue will continue
14to administer that portion of Code chapter 425, subchapter
15II, relating to claims for reimbursement of rent constituting
16property taxes paid until the department of human services has
17adopted rules to assume such administration as provided in the
18bill, but not later than January 1, 2022.
-21-md/jh
2rent constituting property taxes paid and related matters
3and including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 331.559, subsection 12, Code 2021, is
2amended to read as follows:
312. Carry out duties relating to the administration of the
4homestead tax credit and other credits as provided in sections
5425.4, 425.5, 425.7, 425.9, 425.10, and 425.25.
6 Sec. 2. Section 425.1, subsections 1, 4, and 6, Code 2021,
7are amended to read as follows:
81. a. A homestead credit fund is created. There is
9appropriated annually from the general fund of the state to
10the department of revenue to be credited to the homestead
11credit fund, an amount sufficient to implement this chapter
12 subchapter.
13b. The director of the department of administrative services
14shall issue warrants on the homestead credit fund payable to
15the county treasurers of the several counties of the state
16under this chapter subchapter.
174. Annually the department of revenue shall certify to
18the county auditor of each county the credit and its amount
19in dollars. Each county auditor shall then enter the credit
20against the tax levied on each eligible homestead in each
21county payable during the ensuing year, designating on the tax
22lists the credit as being from the homestead credit fund, and
23credit shall then be given to the several taxing districts in
24which eligible homesteads are located in an amount equal to the
25credits allowed on the taxes of the homesteads. The amount of
26credits shall be apportioned by each county treasurer to the
27several taxing districts as provided by law, in the same manner
28as though the amount of the credit had been paid by the owners
29of the homesteads. However, the several taxing districts shall
30not draw the funds so credited until after the semiannual
31allocations have been received by the county treasurer, as
32provided in this chapter subchapter. Each county treasurer
33shall show on each tax receipt the amount of credit received
34from the homestead credit fund.
356. The homestead tax credit allowed in this chapter
-1-1 subchapter shall not exceed the actual amount of taxes payable
2on the eligible homestead, exclusive of any special assessments
3levied against the homestead.
4 Sec. 3. Section 425.2, subsections 1 and 3, Code 2021, are
5amended to read as follows:
61. A person who wishes to qualify for the homestead
7 credit allowed under this chapter subchapter shall obtain the
8appropriate forms for filing for the credit from the assessor.
9The person claiming the credit shall file a verified statement
10and designation of homestead with the assessor for the year for
11which the person is first claiming the credit. The claim shall
12be filed not later than July 1 of the year for which the person
13is claiming the credit. A claim filed after July 1 of the year
14for which the person is claiming the credit shall be considered
15as a claim filed for the following year.
163. In case the owner of the homestead is in active service
17in the armed forces of this state or of the United States, or is
18sixty-five years of age or older, or is disabled, the statement
19and designation may be signed and delivered by any member of
20the owner’s family, by the owner’s guardian or conservator, or
21by any other person who may represent the owner under power
22of attorney. If the owner of the homestead is married, the
23spouse may sign and deliver the statement and designation. The
24director of human services or the director’s designee may make
25application for the benefits of this chapter subchapter as the
26agent for and on behalf of persons receiving assistance under
27chapter 249.
28 Sec. 4. Section 425.6, Code 2021, is amended to read as
29follows:
30425.6 Waiver by neglect.
31If a person fails to file a claim or to have a claim on file
32with the assessor for the credits provided in this chapter
33 subchapter, the person is deemed to have waived the homestead
34credit for the year in which the person failed to file the
35claim or to have a claim on file with the assessor.
-2-1 Sec. 5. Section 425.7, subsections 1 and 2, Code 2021, are
2amended to read as follows:
31. Any person whose claim is denied under the provisions of
4this chapter subchapter may appeal from the action of the board
5of supervisors to the district court of the county in which
6said claimed homestead is situated by giving written notice of
7such appeal to the county auditor of said county within twenty
8days from the date of mailing of notice of such action by the
9board of supervisors.
102. In the event any claim under this chapter subchapter is
11allowed, any owner of an eligible homestead may appeal from the
12action of the board of supervisors to the district court of the
13county in which said claimed homestead is situated, by giving
14written notice of such appeal to the county auditor of said
15county and such notice to the owner of said claimed homestead
16as a judge of the district court shall direct.
17 Sec. 6. Section 425.8, Code 2021, is amended to read as
18follows:
19425.8 Forms — rules.
201. The director of revenue shall prescribe the form
21for the making of a verified statement and designation of
22homestead, the form for the supporting affidavits required
23herein, and such other forms as may be necessary for the proper
24administration of this chapter subchapter. Whenever necessary,
25the department of revenue shall forward to the county auditors
26of the several counties in the state the prescribed sample
27forms, and the county auditors shall furnish blank forms
28prepared in accordance therewith with the assessment rolls,
29books, and supplies delivered to the assessors. The department
30of revenue shall prescribe and the county auditors shall
31provide on the forms for claiming the homestead credit a
32statement to the effect that the owner realizes that the owner
33must give written notice to the assessor when the owner changes
34the use of the property.
352. The director of revenue may prescribe rules, not
-3-1inconsistent with the provisions of this chapter subchapter,
2necessary to carry out and effectuate its purposes.
3 Sec. 7. Section 425.9, subsection 1, Code 2021, is amended
4to read as follows:
51. If the amount of credit apportioned to any homestead
6under the provisions of this chapter subchapter in any
7year shall exceed the total tax, exclusive of any special
8assessments levied against said homestead, then such excess
9shall be remitted by the county treasurer to the department of
10revenue to be redeposited in the homestead credit fund and be
11reallocated the following year by the department as provided in
12this chapter subchapter.
13 Sec. 8. Section 425.10, Code 2021, is amended to read as
14follows:
15425.10 Reversal of allowed claim.
16In the event any claim is allowed, and subsequently reversed
17on appeal, any credit made thereunder shall be void, and the
18amount of such credit shall be charged against the property in
19question, and the director of revenue, the county auditor, and
20the county treasurer are authorized and directed to correct
21their books and records accordingly. The amount of such
22erroneous credit, when collected, shall be returned by the
23county treasurer to the homestead credit fund to be reallocated
24the following year as provided in this chapter subchapter.
25 Sec. 9. Section 425.11, subsection 1, unnumbered paragraph
261, Code 2021, is amended to read as follows:
27For the purpose of this chapter subchapter and wherever used
28in this chapter subchapter:
29 Sec. 10. Section 425.11, subsection 1, paragraph d,
30subparagraph (3), Code 2021, is amended to read as follows:
31(3) It must not embrace more than one dwelling house, but
32where a homestead has more than one dwelling house situated
33thereon, the credit provided for in this chapter subchapter
34 shall apply to the home and buildings used by the owner, but
35shall not apply to any other dwelling house and buildings
-4-1appurtenant.
2 Sec. 11. Section 425.11, subsection 1, paragraph e, Code
32021, is amended to read as follows:
4e. “Owner” means the person who holds the fee simple
5title to the homestead, and in addition shall mean the person
6occupying as a surviving spouse or the person occupying under
7a contract of purchase which contract has been recorded in
8the office of the county recorder of the county in which the
9property is located; or the person occupying the homestead
10under devise or by operation of the inheritance laws where
11the whole interest passes or where the divided interest is
12shared only by persons related or formerly related to each
13other by blood, marriage or adoption; or the person occupying
14the homestead is a shareholder of a family farm corporation
15that owns the property; or the person occupying the homestead
16under a deed which conveys a divided interest where the divided
17interest is shared only by persons related or formerly related
18to each other by blood, marriage or adoption; or where the
19person occupying the homestead holds a life estate with the
20reversion interest held by a nonprofit corporation organized
21under chapter 504, provided that the holder of the life estate
22is liable for and pays property tax on the homestead; or where
23the person occupying the homestead holds an interest in a
24horizontal property regime under chapter 499B, regardless
25of whether the underlying land committed to the horizontal
26property regime is in fee or as a leasehold interest, provided
27that the holder of the interest in the horizontal property
28regime is liable for and pays property tax on the homestead;
29or where the person occupying the homestead is a member of a
30community land trust as defined in 42 U.S.C. §12773, regardless
31of whether the underlying land is in fee or as a leasehold
32interest, provided that the member of the community land
33trust is occupying the homestead and is liable for and pays
34property tax on the homestead. For the purpose of this chapter
35 subchapter the word “owner” shall be construed to mean a bona
-5-1fide owner and not one for the purpose only of availing the
2person of the benefits of this chapter subchapter. In order
3to qualify for the homestead tax credit, evidence of ownership
4shall be on file in the office of the clerk of the district
5court or recorded in the office of the county recorder at the
6time the owner files with the assessor a verified statement
7of the homestead claimed by the owner as provided in section
8425.2.
9 Sec. 12. Section 425.12, Code 2021, is amended to read as
10follows:
11425.12 Indian land.
12Each forty acres of land, or fraction thereof, occupied by
13a member or members of the Sac and Fox Indians in Tama county,
14which land is held in trust by the secretary of the interior of
15the United States for said Indians, shall be given a homestead
16tax credit within the meaning and under the provisions of this
17chapter subchapter. Application for such homestead tax credit
18shall be made to the county auditor of Tama county and may be
19made by a representative of the tribal council.
20 Sec. 13. Section 425.13, Code 2021, is amended to read as
21follows:
22425.13 Conspiracy to defraud.
23If any two or more persons conspire and confederate together
24with fraudulent intent to obtain the credit provided for under
25the terms of this chapter subchapter by making a false deed, or
26a false contract of purchase, they are guilty of a fraudulent
27practice.
28 Sec. 14. Section 425.15, subsection 1, unnumbered paragraph
291, Code 2021, is amended to read as follows:
30If the owner of a homestead allowed a credit under this
31chapter subchapter is any of the following, the credit allowed
32on the homestead from the homestead credit fund shall be the
33entire amount of the tax levied on the homestead:
34 Sec. 15. Section 425.16, Code 2021, is amended to read as
35follows:
-6- 1425.16 Additional tax credit.
21. In addition to the homestead tax credit allowed under
3section 425.1, subsections 1 through 4, persons who own or rent
4their homesteads and who meet the qualifications provided in
5this subchapter are eligible for an extraordinary a property
6tax credit or property taxes due or reimbursement of rent
7constituting property taxes paid.
82. a. The property tax credit for property taxes due under
9this subchapter shall be administered by the department of
10revenue, the assessor, and other county officials as provided
11in this subchapter.
12b. The reimbursement of rent constituting property taxes
13paid under this subchapter shall be administered by the
14department of human services as provided in this subchapter.
15 Sec. 16. Section 425.17, subsection 3, Code 2021, is amended
16to read as follows:
173. “Gross rent” means rental paid at arm’s length for the
18right of occupancy of a homestead or manufactured or mobile
19home, including rent for space occupied by a manufactured
20or mobile home not to exceed one acre. If the department
21of revenue human services determines that the landlord and
22tenant have not dealt with each other at arm’s length, and
23the department of revenue human services is satisfied that
24the gross rent charged was excessive, the department of human
25services shall adjust the gross rent to a reasonable amount as
26determined by the department of human services.
27 Sec. 17. Section 425.18, Code 2021, is amended to read as
28follows:
29425.18 Right to file a claim.
30The right to file a claim for reimbursement or credit under
31this subchapter may be exercised by the claimant or on behalf
32of a claimant by the claimant’s legal guardian, spouse, or
33attorney, or by the executor or administrator of the claimant’s
34estate. If a claimant dies after having filed a claim for
35reimbursement for rent constituting property taxes paid, the
-7-1amount of the reimbursement may be paid to another member of
2the household as determined by the department of revenue of
3human services. If the claimant was the only member of the
4household, the reimbursement may be paid to the claimant’s
5executor or administrator, but if neither is appointed and
6qualified within one year from the date of the filing of
7the claim, the reimbursement shall escheat to the state. If
8a claimant dies after having filed a claim for credit for
9property taxes due, the amount of credit shall be paid as if
10the claimant had not died.
11 Sec. 18. Section 425.19, Code 2021, is amended to read as
12follows:
13425.19 Claim and credit or reimbursement.
14Subject to the limitations provided in this subchapter, a
15claimant may annually claim a credit for property taxes due
16during the fiscal year next following the base year or claim
17a reimbursement for rent constituting property taxes paid in
18the base year. The amount of the credit for property taxes due
19for a homestead shall be paid on June 15 of each year from the
20elderly and disabled property tax credit fund under section
21425.39, subsection 1, by the director of revenue to the county
22treasurer who shall credit the money received against the
23amount of the property taxes due and payable on the homestead
24of the claimant and the amount of the reimbursement for rent
25constituting property taxes paid shall be paid by the director
26of human services to the claimant from the state general
27 reimbursement fund under section 425.39, subsection 2, on or
28before December 31 of each year.
29 Sec. 19. Section 425.20, subsections 1 and 3, Code 2021, are
30amended to read as follows:
311. A claim for reimbursement for rent constituting property
32taxes paid shall not be paid or allowed, unless the claim is
33filed with and in the possession of the department of revenue
34 human services on or before June 1 of the year following the
35base year.
-8- 13. In case of sickness, absence, or other disability of
2the claimant or if, in the judgment of the director of revenue
3or the director of human services, as applicable, good cause
4exists and the claimant requests an extension, the director
5of human services may extend the time for filing a claim for
6reimbursement or and the director of revenue may extend the
7time for filing a claim for credit. However, any further
8time granted shall not extend beyond December 31 of the year
9following the year in which the claim was required to be filed.
10Claims filed as a result of this subsection shall be filed with
11the director of human services or the director of revenue, as
12applicable, who shall provide for the reimbursement of the
13claim to the claimant.
14 Sec. 20. Section 425.23, subsection 3, paragraph a, Code
152021, is amended to read as follows:
16a. A person who is eligible to file a claim for credit
17for property taxes due and who has a household income of
18eight thousand five hundred dollars or less and who has
19an unpaid special assessment levied against the homestead
20may file a claim for a special assessment credit with the
21county treasurer. The department of revenue shall provide
22to the respective treasurers the forms necessary for the
23administration of this subsection. The claim shall be filed
24not later than September 30 of each year. Upon the filing of
25the claim, interest for late payment shall not accrue against
26the amount of the unpaid special assessment due and payable.
27The claim filed by the claimant constitutes a claim for credit
28of an amount equal to the actual amount due upon the unpaid
29special assessment, plus interest, payable during the fiscal
30year for which the claim is filed against the homestead of
31the claimant. However, where the claimant is an individual
32described in section 425.17, subsection 2, paragraph “a”,
33subparagraph (2), and the tentative credit is determined
34according to the schedule in subsection 1, paragraph “b”,
35subparagraph (2), of this section, the claim filed constitutes
-9-1a claim for credit of an amount equal to one-half of the actual
2amount due and payable during the fiscal year. The treasurer
3shall certify to the director of revenue not later than October
415 of each year the total amount of dollars due for claims
5allowed. The amount of reimbursement due each county shall be
6certified by the director of revenue and paid by the director
7of the department of administrative services by November 15
8of each year, drawn upon warrants payable to the respective
9treasurer. There is appropriated annually from the general
10fund of the state to the department of revenue an amount
11sufficient to carry out the provisions of this subsection. The
12treasurer shall credit any moneys received from the department
13of revenue against the amount of the unpaid special assessment
14due and payable on the homestead of the claimant.
15 Sec. 21. Section 425.23, subsection 4, Code 2021, is amended
16by adding the following new paragraph:
17 NEW PARAGRAPH. c. The cumulative adjustment factor shall be
18determined annually by the department of revenue.
19 Sec. 22. Section 425.25, Code 2021, is amended to read as
20follows:
21425.25 Administration — claim forms.
221. The director of revenue shall make available suitable
23forms with instructions for claimants of the credit for
24property taxes due. Each assessor and county treasurer shall
25make available the forms and instructions. The claim shall
26be in a form as the director of revenue may prescribe. The
27director may shall also devise a tax credit or reimbursement
28 table, with amounts rounded to the nearest even whole dollar.
29Reimbursements or credits Credits in the amount of less than
30one dollar shall not be paid.
312. The director of human services shall make available
32suitable forms with instructions for claimants of the
33reimbursement for rent constituting property taxes paid. The
34claim shall be in a form as the director of human services
35may prescribe. The director of revenue shall devise a
-10-1reimbursement table with amounts rounded to the nearest even
2whole dollar and provide such table to the director of human
3services. Reimbursements in the amount of less than one dollar
4shall not be paid.
5 Sec. 23. Section 425.26, Code 2021, is amended to read as
6follows:
7425.26 Proof of claim.
81. Every claimant for the credit for property taxes due
9 shall give the department of revenue, in support of the claim,
10reasonable proof of:
11a. Age and total disability, if any.
12b. Property taxes due or rent constituting property taxes
13paid, including the name and address of the owner or manager
14of the property rented and a statement whether the claimant is
15related by blood, marriage, or adoption to the owner or manager
16of the property rented.
17c. Homestead credit allowed against property taxes due.
18d. Changes of homestead.
19e. Household membership.
20f. Household income.
21g. Size and nature of property claimed as the homestead.
222. Every claimant for reimbursement of rent constituting
23property taxes paid shall give the department of human
24services, in support of the claim, reasonable proof of:
25a. Age and total disability, if any.
26b. Rent constituting property taxes paid, including the name
27and address of the owner or manager of the property rented and
28a statement whether the claimant is related by blood, marriage,
29or adoption to the owner or manager of the property rented.
30c. Changes of homestead.
31d. Household membership.
32e. Household income.
33f. Size and nature of property claimed as the homestead.
342. 3. The department of revenue or the department of human
35services may require any additional proof necessary to support
-11-1a claim.
2 Sec. 24. Section 425.27, Code 2021, is amended to read as
3follows:
4425.27 Audit — recalculation or denial — appeals.
51. a. The department of revenue is responsible for the
6audit of claims for credit of property taxes due under this
7subchapter.
8b. The department of human services is responsible for
9the audit of claims for reimbursement for rent constituting
10property taxes paid under this subchapter.
112. If on the audit of a claim for credit or reimbursement
12 under this subchapter, the department of revenue determines
13the amount of the claim to have been incorrectly calculated
14or that the claim is not allowable, the department of revenue
15 shall recalculate the claim and notify the claimant of
16the recalculation or denial and the reasons for it. The
17recalculation of the claim shall be final unless appealed to
18the director of revenue within thirty days from the date of
19notice of recalculation or denial. The director of revenue
20 shall grant a hearing, and upon hearing determine the correct
21claim, if any, and notify the claimant of the decision by mail.
22The department of revenue shall not adjust a claim after three
23years from October 31 of the year in which the claim was filed.
24If the claim for reimbursement has been paid, the amount may be
25recovered by assessment in the same manner that income taxes
26are assessed under sections 422.26 and 422.30. If the claim
27for credit has been paid, the department of revenue shall give
28notification to the claimant and the county treasurer of the
29recalculation or denial of the claim and the county treasurer
30shall proceed to collect the tax owed in the same manner as
31other property taxes due and payable are collected, if the
32property on which the credit was granted is still owned by the
33claimant, and repay the amount to the director upon collection.
34If the property on which the credit was granted is not owned by
35the claimant, the amount may be recovered from the claimant by
-12-1assessment in the same manner that income taxes are assessed
2under sections 422.26 and 422.30. The decision of the director
3of revenue shall be final unless appealed as provided in
4section 425.31.
53. If on the audit of a claim for reimbursement for rent
6constituting property taxes paid under this subchapter, the
7department of human services determines the amount of the claim
8to have been incorrectly calculated or that the claim is not
9allowable, the department of human services shall recalculate
10the claim and notify the claimant of the recalculation or
11denial and the reasons for it. The recalculation of the
12claim shall be final unless appealed to the director of
13human services within thirty days from the date of notice of
14recalculation or denial. The director of human services shall
15grant a hearing, and upon hearing determine the correct claim,
16if any, and notify the claimant of the decision by mail. The
17department of human services shall not adjust a claim after
18three years from October 31 of the year in which the claim
19was filed. If the claim for reimbursement has been paid, the
20amount may be recovered by the department of human services.
21The decision of the director of human services shall be final
22unless appealed as provided in section 425.31.
234. a. Section For the purpose of administering the credit
24for property taxes due, including the duties of the director
25of revenue and the department of revenue, section 422.70 is
26applicable with respect to this subchapter.
27b. For the purpose of administering the reimbursement for
28rent constituting property taxes paid, including the duties
29of the director of human services and the department of human
30services under this subchapter, the director of human services
31shall have the same powers as those described in section
32422.70.
33 Sec. 25. Section 425.28, Code 2021, is amended to read as
34follows:
35425.28 Waiver of confidentiality.
-13- 11. A claimant for the credit for property taxes due shall
2expressly waive any right to confidentiality relating to all
3income tax information obtainable through the department of
4revenue, including all information covered by sections 422.20
5and 422.72. This waiver shall apply to information available
6to the county treasurer who shall hold the information
7confidential except that it may be used as evidence to disallow
8the credit.
92. A claimant for reimbursement of rent constituting
10property taxes paid shall expressly waive any right to
11confidentiality relating to all income tax information
12obtainable by the department of human services.
133. For the effective administration of this subchapter,
14the department of revenue and the department of human services
15shall share information obtained by each department from
16claimants under this subchapter.
172. 4. The In addition to the sharing of information under
18subsection 3, the department of revenue human services may
19release information pertaining to a person’s eligibility or
20claim for or receipt of rent reimbursement to an employee of
21the department of inspections and appeals in the employee’s
22official conduct of an audit or investigation.
23 Sec. 26. Section 425.29, Code 2021, is amended to read as
24follows:
25425.29 False claim — penalty.
261. A person who makes a false affidavit for the purpose
27of obtaining credit or reimbursement provided for in
28this subchapter or who knowingly receives the credit or
29reimbursement without being legally entitled to it or makes
30claim for the credit or reimbursement in more than one county
31in the state without being legally entitled to it is guilty of
32a fraudulent practice. The claim for credit or reimbursement
33shall be disallowed in full and if the claim has been paid the
34amount shall be recovered in the manner provided in section
35425.27.
-14- 12. The In the case of a claim for credit disallowed by the
2 department of revenue, the department of revenue may impose
3penalties under section 421.27. The department of revenue
4shall send a notice of disallowance of the claim.
53. In the case of a claim for reimbursement disallowed
6by the department of human services, the department of human
7services may impose penalties described in section 421.27.
8The department of human services shall send a notice of
9disallowance of the claim.
10 Sec. 27. Section 425.30, Code 2021, is amended by striking
11the section and inserting in lieu thereof the following:
12425.30 Notices.
131. A notice authorized or required under this subchapter
14related to a credit for property taxes due may be given by
15mailing the notice to the person for whom it is intended,
16addressed to that person at the address given in the last
17credit claim form filed by the person pursuant to this
18subchapter, or if no return has been filed, then to any address
19obtainable.
202. A notice authorized or required under this subchapter
21related to a reimbursement for rent constituting property taxes
22paid may be given by mailing the notice to the person for whom
23it is intended, addressed to that person at the address given
24in the reimbursement claim form filed by the person pursuant
25to this subchapter, or if no return has been filed, then to any
26address obtainable.
273. The mailing of the notice is presumptive evidence of the
28receipt of the notice by the person to whom addressed. Any
29period of time which is determined according to this subchapter
30by the giving of notice commences to run from the date of
31mailing of the notice.
32 Sec. 28. Section 425.31, Code 2021, is amended by striking
33the section and inserting in lieu thereof the following:
34425.31 Appeals.
351. Judicial review of the actions of the director of revenue
-15-1or the department of revenue under this subchapter may be
2sought in accordance with the terms of chapter 17A and the
3rules of the department of revenue.
42. Judicial review of the actions of the director of
5human services or the department of human services under this
6subchapter may be sought in accordance with the terms of
7chapter 17A and the rules of the department of human services.
83. For cause and upon a showing by the director of revenue
9or the director of human services, as applicable, that
10collection of the amount in dispute is in doubt, the court may
11order the petitioner to file with the clerk a bond for the use
12of the respondent, with sureties approved by the clerk, equal
13to the amount appealed from, conditioned that the petitioner
14shall perform the orders of the court.
154. An appeal may be taken by the claimant or the director
16of revenue or the director of human services, as applicable,
17to the supreme court of this state irrespective of the amount
18involved.
19 Sec. 29. Section 425.32, Code 2021, is amended to read as
20follows:
21425.32 Disallowance of certain claims for credit.
22A claim for credit for property taxes due shall be disallowed
23if the department of revenue finds that the claimant or a
24person of the claimant’s household received title to the
25homestead primarily for the purpose of receiving benefits under
26this subchapter.
27 Sec. 30. Section 425.33, Code 2021, is amended to read as
28follows:
29425.33 Rent increase — request and order for reduction.
301. If upon petition by a claimant the department of revenue
31 human services determines that a landlord has increased the
32claimant’s rent primarily because the claimant is eligible for
33reimbursement under this subchapter, the department of revenue
34 human services shall request the landlord by mail to reduce the
35rent appropriately.
-16- 12. In determining whether a landlord has increased a
2claimant’s rent primarily because the claimant is eligible for
3reimbursement under this subchapter, the department of revenue
4 human services shall consider the following factors:
5a. The amount of the increase in rent.
6b. If the landlord operates other rental property, whether a
7similar increase was imposed on the other rental property.
8c. Increased or decreased costs of materials, supplies,
9services, and taxes in the area.
10d. The time the rent was increased.
11e. Other relevant factors in each particular case.
123. If the landlord fails to comply with the request of
13the department of revenue human services within fifteen days
14after the request is mailed by the department, the department
15of revenue human services shall order the rent reduced by an
16appropriate amount.
17 Sec. 31. Section 425.34, Code 2021, is amended to read as
18follows:
19425.34 Hearings Rent increase hearings and appeals.
201. If the department of revenue human services orders a
21landlord to reduce rent to a claimant, then upon the request
22of the landlord the department of revenue human services
23 shall hold a prompt hearing of the matter, to be conducted in
24accordance with the rules of the department. The department
25of revenue human services shall give notice of the decision by
26mail to the claimant and to the landlord.
272. The claimant and the landlord shall have the rights of
28appeal and review as provided in section 425.31.
29 Sec. 32. Section 425.37, Code 2021, is amended to read as
30follows:
31425.37 Rules.
32The director of revenue and the director of human services
33 shall each adopt rules in accordance with chapter 17A for the
34interpretation and proper administration of this subchapter
35and each department’s applicable powers and duties under this
-17-1subchapter, including rules to prevent and disallow duplication
2of benefits and to prevent any unreasonable hardship or
3advantage to any person.
4 Sec. 33. Section 425.39, Code 2021, is amended to read as
5follows:
6425.39 Fund Funds created — appropriation appropriations —
7priority.
81. The elderly and disabled property tax credit and
9reimbursement fund is created. There is appropriated annually
10from the general fund of the state to the department of revenue
11to be credited to the elderly and disabled property tax credit
12and reimbursement fund, from funds not otherwise appropriated,
13an amount sufficient to implement this subchapter for credits
14for property taxes due for claimants described in section
15425.17, subsection 2, paragraph “a”, subparagraph (1).
162. The elderly and disabled rent reimbursement fund is
17created. There is appropriated annually from the general fund
18of the state to the department of human services to be credited
19to the elderly and disabled rent reimbursement fund, from funds
20not otherwise appropriated, an amount sufficient to implement
21this subchapter for reimbursement for rent constituting
22property taxes paid for claimants described in section 425.17,
23subsection 2, paragraph “a”, subparagraph (1).
24 Sec. 34. Section 425.40, Code 2021, is amended to read as
25follows:
26425.40 Low-income fund created.
271. A low-income tax credit and reimbursement fund is
28created. Within the low-income tax credit and reimbursement
29fund, a rent reimbursement account is created under the control
30of the department of human services and a tax credit account
31is created under the control of the department of revenue.
32Amounts appropriated to the fund shall first be credited to the
33reimbursement account.
342. a. If The director of human services shall use amounts
35credited to the rent reimbursement account for a fiscal year
-18-1to pay all claims for reimbursement of rent constituting
2property taxes paid for claimants described in section 425.17,
3subsection 2, paragraph “a”, subparagraph (2). If the amount
4appropriated for purposes of this section for a fiscal year and
5credited to the rent reimbursement account is insufficient to
6pay all claims in full, the director of human services shall
7pay, in full, all claims to be paid during the fiscal year
8for reimbursement of rent constituting property taxes paid or
9if moneys are insufficient to pay all such claims on a pro
10rata basis. If the amount of claims for credit for property
11taxes due to be paid during the fiscal year exceed the amount
12remaining after payment to renters, the director of revenue
13shall prorate the payments to the counties for the property tax
14credit.
15b. If the amount appropriated for purposes of this section
16for a fiscal year and credited to the rent reimbursement
17account exceeds the amount necessary to pay in full all
18reimbursement claims for the fiscal year, the department
19of human services shall transfer such excess amount to the
20department of revenue for deposit in the tax credit account.
21The department of revenue shall use any amounts credited to the
22tax credit account for a fiscal year to pay to the counties all
23claims for credit for property taxes due for the fiscal year,
24or if such amount is insufficient, to pay to the counties all
25such claims on a pro rata basis.
263. In order for the director of revenue or the director of
27human services to carry out the requirements of this subsection
282, notwithstanding any provision to the contrary in this
29subchapter, claims for reimbursement for rent constituting
30property taxes paid filed before May 1 of the fiscal year
31shall be eligible to be paid in full during the fiscal year
32and those claims filed on or after May 1 of the fiscal year
33shall be eligible to be paid during the following fiscal year
34and the director of revenue is not required to make payments
35to counties for the property tax credit before June 15 of the
-19-1fiscal year.
2 Sec. 35. TRANSITION PROVISION — ADMINISTRATIVE RULES. The
3department of revenue shall continue to administer that
4portion of chapter 425, subchapter II, relating to claims for
5reimbursement of rent constituting property taxes paid until
6the department of human services has adopted rules to assume
7such administration as provided in this Act, but not later than
8January 1, 2022.
9 Sec. 36. EFFECTIVE DATE. This Act, being deemed of
10immediate importance, takes effect upon enactment.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
14Current Code chapter 425, subchapter II, provides a
15property tax credit or rent reimbursement for certain elderly
16and disabled persons in addition to the homestead property
17tax credit. Current Code chapter 425, subchapter II, also
18establishes a similar property tax credit or reimbursement
19for rent constituting property taxes paid for persons who are
2023 years of age or older or who are a head of household, but
21who have not attained the age of 65 or incurred the requisite
22disability status. The provision of these credits is triggered
23by an appropriation to and payment from the low-income tax
24credit and reimbursement fund established in Code section
25425.40. The department of revenue administers the property tax
26credit and rent reimbursement programs under Code chapter 425,
27subchapter II.
28This bill transfers responsibility for administration of
29the claims for rent constituting property taxes paid to the
30department of revenue and modifies various provisions of Code
31chapter 425, subchapter II, and enacts several provisions
32applicable to the department of human services and the director
33of human services that are similar to those applicable to the
34department of revenue and the director of revenue regarding
35administration of the claims for property taxes due, over which
-20-1the department of revenue will retain administrative control.
2The bill provides for the creation of two separate funds
3in lieu of the elderly and disabled property tax credit and
4reimbursement fund under current Code section 425.39 and
5modifies the structure of the low-income fund under Code
6section 425.40 to include a tax credit account under the
7control of the department of revenue and a rent reimbursement
8account under the control of the department of human services.
9The bill also changes several references to “this chapter”
10within Code chapter 425, subchapter I, to reflect the
11provisions’ applicability.
12The bill takes effect upon enactment.
13Under the bill, the department of revenue will continue
14to administer that portion of Code chapter 425, subchapter
15II, relating to claims for reimbursement of rent constituting
16property taxes paid until the department of human services has
17adopted rules to assume such administration as provided in the
18bill, but not later than January 1, 2022.
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