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CHAPTER 425HOMESTEAD TAX CREDITS, EXEMPTIONS, AND REIMBURSEMENTReferred to in 2.48, 10A.518, 321.1, 331.512
SUBCHAPTER IHOMESTEAD TAX CREDITS AND EXEMPTIONSReferred to in 425.17, 435.26425.1Homestead credit fund — apportionment — payment.1.a. A homestead credit fund is created. There is appropriated annually from the general fund of the state to the department of revenue to be credited to the homestead credit fund, an amount sufficient to implement this subchapter.b. The director of the department of administrative services shall issue warrants on the homestead credit fund payable to the county treasurers of the several counties of the state under this subchapter.2. The homestead credit fund shall be apportioned each year so as to give a credit against the tax on each eligible homestead in the state in an amount equal to the actual levy on the first four thousand eight hundred fifty dollars of actual value for each homestead.3. The amount due each county shall be paid in two payments on November 15 and March 15 of each fiscal year, drawn upon warrants payable to the respective county treasurers. The two payments shall be as nearly equal as possible.4. Annually the department of revenue shall certify to the county auditor of each county the credit and its amount in dollars. Each county auditor shall then enter the credit against the tax levied on each eligible homestead in each county payable during the ensuing year, designating on the tax lists the credit as being from the homestead credit fund, and credit shall then be given to the several taxing districts in which eligible homesteads are located in an amount equal to the credits allowed on the taxes of the homesteads. The amount of credits shall be apportioned by each county treasurer to the several taxing districts as provided by law, in the same manner as though the amount of the credit had been paid by the owners of the homesteads. However, the several taxing districts shall not draw the funds so credited until after the semiannual allocations have been received by the county treasurer, as provided in this subchapter. Each county treasurer shall show on each tax receipt the amount of credit received from the homestead credit fund.5. If the homestead tax credit computed under this section is less than sixty-two dollars and fifty cents, the amount of homestead tax credit on that eligible homestead shall be sixty-two dollars and fifty cents subject to the limitation imposed in this section.6. The homestead tax credit allowed in this subchapter shall not exceed the actual amount of taxes payable on the eligible homestead, exclusive of any special assessments levied against the homestead.[C35, §6943-f63, -f64; C39, §6943.100, 6943.142; C46, §422.69, 425.1; C50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.1; 1982 Acts, ch 1186, §2,5]83 Acts, ch 172, §3, 86 Acts, ch 1244, §50, 91 Acts, ch 97, §48, 2003 Acts, ch 145, §258, 286, 2005 Acts, ch 140, §52, 2011 Acts, ch 25, §143, 2021 Acts, ch 41, §2, 36Referred to in 25B.7, 216.12, 404.3, 425.16, 425.23, 441.21, 441.73425.1AHomestead tax exemption.1. The following exemptions from taxation shall be allowed in addition to the homestead credit for an owner that has attained the age of sixty-five years by January 1 of the assessment year:a. For the assessment year beginning January 1, 2023, the eligible homestead, not to exceed three thousand two hundred fifty dollars in taxable value.b. For the assessment year beginning January 1, 2024, and each succeeding assessment year, the eligible homestead, not to exceed six thousand five hundred dollars in taxable value.2. Section 25B.7, subsection 1, shall not apply to the property tax exemption provided in this section.2023 Acts, ch 71, §30, 48, 49Referred to in 425.2, 425.16, 425.17
For requirements relating to state funding of property tax credits, see §25B.7
| SUBCHAPTER I | |
| HOMESTEAD TAX CREDITS AND EXEMPTIONS | |
| 425.1 | Homestead credit fund — apportionment — payment. |
| 425.1A | Homestead tax exemption. |
| 425.2 | Qualifying for credit. |
| 425.3 | Verification of claims for homestead credit. |
| 425.4 | Certification to treasurer. |
| 425.5 | Correcting listing. |
| 425.6 | Waiver by neglect. |
| 425.7 | Appeals permitted — disallowed claims and penalty. |
| 425.8 | Forms rules. |
| 425.9 | Credits in excess of tax appeals refunds. |
| 425.10 | Reversal of allowed claim. |
| 425.11 | Definitions. |
| 425.12 | Indian land. |
| 425.13 | Conspiracy to defraud. |
| 425.14 | False affidavits. Repealed by 2001 Acts, ch 154, §5, 6. |
| 425.15 | Disabled veteran tax credit. |
| SUBCHAPTER II | |
| PROPERTY TAX CREDIT OR RENT REIMBURSEMENT FOR ELDERLY AND DISABLED | |
| 425.16 | Additional tax credit. |
| 425.17 | Definitions. |
| 425.18 | Right to file a claim. |
| 425.19 | Claim and credit or reimbursement. |
| 425.20 | Filing dates affidavit extension. |
| 425.21 | Satisfaction of outstanding tax liabilities. |
| 425.22 | One claimant per household. |
| 425.23 | Schedule for claims for credit or reimbursement. |
| 425.24 | Maximum property tax for purpose of credit or reimbursement. |
| 425.25 | Administration claim forms. |
| 425.26 | Proof of claim. |
| 425.27 | Audit recalculation or denial appeals. |
| 425.28 | Waiver of confidentiality. |
| 425.29 | False claim penalty. |
| 425.30 | Notices. |
| 425.31 | Appeals. |
| 425.32 | Disallowance of certain claims for credit. |
| 425.33 | Rent increase request and order for reduction. |
| 425.34 | Rent increase hearings and appeals. |
| 425.35 | Defense to action for nonpayment of rent. |
| 425.36 | Discrimination in rentals or rent charges. |
| 425.37 | Rules. |
| 425.38 | Reserved. |
| 425.39 | Funds created appropriations priority. |
| 425.40 | Low-income fund created. |
Section applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
NEW section
425.2Qualifying for credit.1. A person who wishes to qualify for the homestead credit allowed under this subchapter shall obtain the appropriate forms for filing for the credit from the assessor. The person claiming the credit shall file a verified statement and designation of homestead with the assessor for the year for which the person is first claiming the credit. The claim shall be filed not later than July 1 of the year for which the person is claiming the credit. A claim filed after July 1 of the year for which the person is claiming the credit shall be considered as a claim filed for the following year.2. Upon the filing and allowance of the claim, the claim shall be allowed on that homestead for successive years without further filing as long as the property is legally or equitably owned and used as a homestead by that person or that person’s spouse on July 1 of each of those successive years, and the owner of the property being claimed as a homestead declares residency in Iowa for purposes of income taxation, and the property is occupied by that person or that person’s spouse for at least six months in each of those calendar years in which the fiscal year begins. When the property is sold or transferred, the buyer or transferee who wishes to qualify shall refile for the credit. However, when the property is transferred as part of a distribution made pursuant to chapter 598, the transferee who is the spouse retaining ownership of the property is not required to refile for the credit. Property divided pursuant to chapter 598 shall not be modified following the division of the property. An owner who ceases to use a property for a homestead or intends not to use it as a homestead for at least six months in a calendar year shall provide written notice to the assessor by July 1 following the date on which the use is changed. A person who sells or transfers a homestead or the personal representative of a deceased person who had a homestead at the time of death, shall provide written notice to the assessor that the property is no longer the homestead of the former claimant.3. In case the owner of the homestead is in active service in the armed forces of this state or of the United States, or is sixty-five years of age or older, or is disabled, the statement and designation may be signed and delivered by any member of the owner’s family, by the owner’s guardian or conservator, or by any other person who may represent the owner under power of attorney. If the owner of the homestead is married, the spouse may sign and deliver the statement and designation. The director of health and human services or the director’s designee may make application for the benefits of this subchapter as the agent for and on behalf of persons receiving assistance under chapter 249.4. The form for claiming the credit shall also include the ability to claim the exemption under section 425.1A for qualified owners. If the claim for the homestead credit is allowed, such allowance shall also include allowance of the homestead exemption if the owner meets the age criteria for the exemption. The homestead exemption shall be allowed for successive years without further filing in the same manner as the homestead credit.5. Any person sixty-five years of age or older or any person who is disabled may request, in writing, from the appropriate assessor forms for filing for homestead tax credit. Any person sixty-five years of age or older or who is disabled may complete the form, which shall include a statement of homestead, and mail or return it to the appropriate assessor. The signature of the claimant on the statement shall be considered the claimant’s acknowledgment that all statements and facts entered on the form are correct to the best of the claimant’s knowledge.6. Upon adoption of a resolution by the county board of supervisors, any person may request, in writing, from the appropriate assessor forms for the filing for homestead tax credit. The person may complete the form, which shall include a statement of homestead, and mail or return it to the appropriate assessor. The signature of the claimant on the statement of homestead shall be considered the claimant’s acknowledgment that all statements and facts entered on the form are correct to the best of the claimant’s knowledge.[C39, §6943.143; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.2; 1982 Acts, ch 1246, §1,11]83 Acts, ch 96, §157, 159, 86 Acts, ch 1109, §1, 87 Acts, ch 198, §2, 88 Acts, ch 1141, §1, 89 Acts, ch 256, §1, 90 Acts, ch 1087, §1, 91 Acts, ch 97, §49, 92 Acts, ch 1073, §9, 94 Acts, ch 1143, §1, 97 Acts, ch 206, §6, 2015 Acts, ch 29, §114, 2021 Acts, ch 41, §3, 36, 2023 Acts, ch 19, §1127, 2023 Acts, ch 71, §31, 48, 49Referred to in 25B.7, 331.401, 425.7, 425.11Subsection 4 applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Subsection 3 amended
NEW subsection 4 and former subsections 4 and 5 renumbered as 5 and 6
425.3Verification of claims for homestead credit.1. The assessor shall retain a permanent file of current homestead claims filed in the assessor’s office. The assessor shall file a notice of transfer of property for which a claim is filed when notice is received from the office of the county recorder.2. The county recorder shall give notice to the assessor of each transfer of title filed in the recorder’s office. The notice shall describe the property transferred, the name of the person transferring the title to the property, and the name of the person to whom title to the property has been transferred.3. Not later than July 6 of each year, the assessor shall remit the statements and designation of homesteads to the county auditor with the assessor’s recommendation for allowance or disallowance. If the assessor recommends disallowance of a claim, the assessor shall submit the reasons for the recommendation, in writing, to the county auditor.4. The county auditor shall forward the claims to the board of supervisors. The board shall allow or disallow the claims. If the board disallows a claim, it shall send written notice, by mail, to the claimant at the claimant’s last known address. The notice shall state the reasons for disallowing the claim. The board is not required to send notice that a claim is disallowed if the claimant voluntarily withdraws the claim.[C39, §6943.144; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.3; 1982 Acts, ch 1246, §2,11]86 Acts, ch 1241, §32, 94 Acts, ch 1144, §1, 2015 Acts, ch 29, §114, 2023 Acts, ch 71, §32, 48, 49Referred to in 25B.7, 331.4012023 amendment to subsection 4 applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Subsection 4 amended
425.4Certification to treasurer.All claims which have been allowed by the board of supervisors shall be certified on or before August 1, in each year, by the county auditor to the county treasurer, which certificates shall list the total amount of dollars, listed by taxing district in the county, due for homestead tax exemptions and credits claimed and allowed. The county treasurer shall then certify to the department of revenue the total amount of dollars, listed by taxing district in the county, due for homestead tax credits claimed and allowed.[C39, §6943.145; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.4]2003 Acts, ch 145, §286, 2023 Acts, ch 71, §33, 48, 49Referred to in 25B.7, 331.5592023 amendment applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Section amended
425.5Correcting listing.If the assessor who last listed and valued a claimed eligible homestead did not, in the description and valuation thereof, comply with the provisions of section 428.7, the assessor shall, if still in office, on the written request of such claimant and without expense to the claimant or to the county, correct the listing and valuations of such claimed homestead and contiguous real property originally listed and valued by the assessor, and file such corrected listing and valuations with the county auditor, who forthwith shall certify the same to the county treasurer, and said county treasurer shall so correct the tax books; provided, that if the assessor who last listed and valued such property is not still in office, the assessor in office shall, on such written request and at the expense of the county, so correct such listing and valuations of said homestead and said contiguous real property.[C39, §6943.146; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.5]Referred to in 25B.7, 331.559425.6Waiver by neglect.If a person fails to file a claim or to have a claim on file with the assessor for the credits provided in this subchapter, the person is deemed to have waived the homestead exemption and credit for the year in which the person failed to file the claim or to have a claim on file with the assessor.[C39, §6943.147; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.6; 1982 Acts, ch 1246, §3,11]2021 Acts, ch 41, §4, 36, 2023 Acts, ch 71, §34, 48, 49Referred to in 25B.72023 amendment applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Section amended
425.7Appeals permitted — disallowed claims and penalty.1. Any person whose claim is denied under the provisions of this subchapter may appeal from the action of the board of supervisors to the district court of the county in which said claimed homestead is situated by giving written notice of such appeal to the county auditor of said county within twenty days from the date of mailing of notice of such action by the board of supervisors.2. In the event any claim under this subchapter is allowed, any owner of an eligible homestead may appeal from the action of the board of supervisors to the district court of the county in which said claimed homestead is situated, by giving written notice of such appeal to the county auditor of said county and such notice to the owner of said claimed homestead as a judge of the district court shall direct.3.a. If the department of revenue determines that a claim for homestead exemption and credit has been allowed by the board of supervisors which is not justifiable under the law and not substantiated by proper facts, the department may, at any time within thirty-six months from July 1 of the year in which the claim is allowed, set aside the allowance. Notice of the disallowance shall be given to the county auditor of the county in which the claim has been improperly granted and a written notice of the disallowance shall also be addressed to the claimant at the claimant’s last known address. The claimant or board of supervisors may appeal to the director of revenue within thirty days from the date of the notice of disallowance. The director shall grant a hearing and if, upon the hearing, the director determines that the disallowance was incorrect, the director shall set aside the disallowance. The director shall notify the claimant and the board of supervisors of the result of the hearing. The claimant or the board of supervisors may seek judicial review of the action of the director of revenue in accordance with chapter 17A.b. If a claim is disallowed by the department of revenue and not appealed to the director of revenue or appealed to the director of revenue and thereafter upheld upon final resolution, including any judicial review, any amounts of exemptions allowed and credits allowed and paid from the homestead credit fund including the penalty, if any, become a lien upon the property on which the exemption or credit was originally granted, if still in the hands of the claimant, and not in the hands of a bona fide purchaser, and any amount so erroneously paid including the penalty, if any, shall be collected by the county treasurer in the same manner as other taxes and the collections shall be returned to the department of revenue and credited to the homestead credit fund. The director of revenue may institute legal proceedings against a homestead credit claimant for the collection of payments made on disallowed credits and the penalty, if any. If a person makes a false claim or affidavit with fraudulent intent to obtain the homestead exemption or credit, the person is guilty of a fraudulent practice and the claim shall be disallowed in full. If the credit has been paid, the amount of the credit plus a penalty equal to twenty-five percent of the amount of credit plus interest, at the rate in effect under section 421.7, from the time of payment shall be collected by the county treasurer in the same manner as other property taxes, penalty, and interest are collected and when collected shall be paid to the director of revenue. If a homestead exemption or credit is disallowed and the claimant failed to give written notice to the assessor as required by section 425.2 when the property ceased to be used as a homestead by the claimant, a civil penalty equal to five percent of the amount of the disallowed exemption or credit is assessed against the claimant.[C39, §6943.148; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.7; 1982 Acts, ch 1246, §4,11]89 Acts, ch 251, §33, 97 Acts, ch 158, §26, 2001 Acts, ch 154, §1, 6, 2002 Acts, ch 1151, §15, 2003 Acts, ch 145, §286, 2006 Acts, ch 1010, §106, 2011 Acts, ch 25, §143, 2015 Acts, ch 109, §7, 75, 2021 Acts, ch 41, §5, 36, 2023 Acts, ch 71, §35, 48, 49Referred to in 25B.7, 331.559Fraudulent practices; §714.8 – 714.14
2023 amendment to subsection 3 applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Subsection 3 amended
425.8Forms rules.1. The director of revenue shall prescribe the form for the making of a verified statement and designation of homestead, the form for the supporting affidavits required herein, and such other forms as may be necessary for the proper administration of this subchapter. Whenever necessary, the department of revenue shall forward to the county auditors of the several counties in the state the prescribed sample forms, and the county auditors shall furnish blank forms prepared in accordance therewith with the assessment rolls, books, and supplies delivered to the assessors. The department of revenue shall prescribe and the county auditors shall provide on the forms for claiming the homestead credit a statement to the effect that the owner realizes that the owner must give written notice to the assessor when the owner changes the use of the property.2. The director of revenue may prescribe rules, not inconsistent with the provisions of this subchapter, necessary to carry out and effectuate its purposes.[C39, §6943.149; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.8; 1982 Acts, ch 1246, §5,11]2003 Acts, ch 145, §286, 2019 Acts, ch 24, §104, 2020 Acts, ch 1062, §52, 2020 Acts, ch 1063, §230, 2021 Acts, ch 41, §6, 36Referred to in 25B.7425.9Credits in excess of tax appeals refunds.1. If the amount of credit apportioned to any homestead under the provisions of this subchapter in any year shall exceed the total tax, exclusive of any special assessments levied against said homestead, then such excess shall be remitted by the county treasurer to the department of revenue to be redeposited in the homestead credit fund and be reallocated the following year by the department as provided in this subchapter.2. If any claim for exemption or credit has been denied by the board of supervisors, and such action is subsequently reversed on appeal, the exemption or credit shall be allowed on the homestead involved in said appeal, and the director of revenue, the county auditor, and the county treasurer shall make such exemption or credit and change their books and records accordingly.3. In the event the appealing taxpayer has paid one or both of the installments of the tax payable in the year or years in question on such homestead valuation, remittance shall be made to such taxpayer of the amount of such credit or exemption.4. The amount of such credit shall be allocated and paid from the surplus redeposited in the homestead credit fund provided for in subsection 1.[C39, §6943.150; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.9]2003 Acts, ch 145, §286, 2018 Acts, ch 1026, §135, 2021 Acts, ch 41, §7, 36, 2023 Acts, ch 71, §36, 48, 49Referred to in 25B.7, 331.5592023 amendment to subsections 2 and 3 applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Subsections 2 and 3 amended
425.10Reversal of allowed claim.In the event any claim is allowed, and subsequently reversed on appeal, any exemption and credit made under the claim shall be void. The amount of the erroneous credit shall be charged against the property in question, and the director of revenue, the county auditor, and the county treasurer are authorized and directed to correct their books and records accordingly. The amount of the erroneous credit, when collected, shall be returned by the county treasurer to the homestead credit fund to be reallocated the following year as provided in this subchapter. Taxes due following reversal of a claim for an exemption shall be collected by the county treasurer and allocated to the appropriate taxing entities.[C39, §6943.151; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.10]2003 Acts, ch 145, §286, 2018 Acts, ch 1026, §136, 2021 Acts, ch 41, §8, 36, 2022 Acts, ch 1021, §104, 2023 Acts, ch 71, §37, 48, 49Referred to in 25B.7, 331.5592023 amendment applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Section amended
425.11Definitions.1. For the purpose of this subchapter and wherever used in this subchapter:a. “Assessed valuation” means the taxable valuation of the homestead as fixed by the assessor, or by the board of review, under the provisions of section 441.21, without deducting therefrom the exemptions authorized in section 426A.11.b. “Book”, “list”, “record”, or “schedule” kept by a county auditor, assessor, treasurer, recorder, sheriff, or other county officer, unless the context otherwise requires, means the county system as defined in section 445.1.c. “Dwelling house” shall embrace any building occupied wholly or in part by the claimant as a home.d. “Homestead” shall have the following meaning:(1) The homestead includes the dwelling house which the owner, in good faith, is occupying as a home on July 1 of the year for which the credit is claimed and occupies as a home for at least six months during the calendar year in which the fiscal year begins, except as otherwise provided.(a) When any person is inducted into active service under the Selective Training and Service Act of the United States or whose voluntary entry into active service results in a credit on the quota of persons required for service under the Selective Training and Service Act, or who, being a member of any component part of the military, naval, or air forces or nurse corps of this state or nation, is called or ordered into active service, such person shall be considered as occupying or living on the homestead during such service and, where equitable or legal title of the homestead is in the spouse of the person who is a member of or is inducted into the armed services of the United States, the spouse shall be considered as occupying or living on the homestead during such service.(b) When any person is confined in a nursing home, extended-care facility, or hospital, such person shall be considered as occupying or living on a homestead where such person is the owner of such homestead and such person maintains such homestead and does not lease, rent, or otherwise receive profits from other persons for the use thereof.(2) It may contain one or more contiguous lots or tracts of land with the buildings or other appurtenances thereon habitually, and in good faith, used as a part of the homestead.(3) It must not embrace more than one dwelling house, but where a homestead has more than one dwelling house situated thereon, the exemption and credit provided for in this subchapter shall apply to the home and buildings used by the owner, but shall not apply to any other dwelling house and buildings appurtenant.e.(1) “Owner” means the person who holds the fee simple title to the homestead. “Owner” also includes the following:(a) The person occupying as a surviving spouse.(b) The person occupying under a contract of purchase which contract has been recorded in the office of the county recorder of the county in which the property is located.(c) The person occupying the homestead under devise or by operation of the inheritance laws where the whole interest passes or where the divided interest is shared only by persons related or formerly related to each other by blood, marriage, or adoption.(d) The person occupying the homestead is a shareholder of a family farm corporation that owns the property.(e) The person occupying the homestead under a deed which conveys a divided interest where the divided interest is shared only by persons related or formerly related to each other by blood, marriage, or adoption.(f) Where the person occupying the homestead holds a life estate with the reversion interest held by a nonprofit corporation organized under chapter 504, provided that the holder of the life estate is liable for and pays property tax on the homestead.(g) Where the person occupying the homestead holds an interest in a horizontal property regime under chapter 499B, regardless of whether the underlying land committed to the horizontal property regime is in fee or as a leasehold interest, provided that the holder of the interest in the horizontal property regime is liable for and pays property tax on the homestead.(h) Where the person occupying the homestead is a member of a community land trust as defined in 42 U.S.C. §12773, regardless of whether the underlying land is in fee or as a leasehold interest, provided that the member of the community land trust is occupying the homestead and is liable for and pays property tax on the homestead.(i) The person occupying the homestead regardless of whether the underlying land is in fee or as a leasehold interest, provided that the person is occupying the homestead and is liable for and pays property tax on the homestead.(2) For the purpose of this subchapter, the word “owner” shall be construed to mean a bona fide owner and not one for the purpose only of availing the person of the benefits of this subchapter. In order to qualify for the homestead tax credit, evidence of ownership shall be on file in the office of the clerk of the district court or recorded in the office of the county recorder at the time the owner files with the assessor a verified statement of the homestead claimed by the owner as provided in section 425.2.2. Where not in conflict with the terms of the definitions set out in subsection 1, the provisions of chapter 561 shall control.[C39, §6943.152; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.11; 1982 Acts, ch 1246, §6,11]89 Acts, ch 256, §2, 90 Acts, ch 1087, §2, 90 Acts, ch 1250, §5, 91 Acts, ch 97, §50, 2000 Acts, ch 1148, §1, 2002 Acts, ch 1119, §200, 201, 2004 Acts, ch 1049, §191, 2004 Acts, ch 1175, §393, 2006 Acts, ch 1158, §56, 69, 2011 Acts, ch 34, §166, 2021 Acts, ch 41, §9 – 11, 36, 2023 Acts, ch 71, §38, 39, 48, 49, 2023 Acts, ch 115, §45 – 47Referred to in 25B.72023 amendment to subsection 1, paragraph d, subparagraph (3) applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
2023 amendment to subsection 1, paragraph e applies to claims under chapter 425, subchapter I, for credits against property taxes due and payable in fiscal years beginning on or after July 1, 2024; 2023 Acts, ch 115, §47
With respect to amendments to subsection 1, paragraph e, by 2023 Acts, ch 71, §39, effective on May 4, 2023, and applying retroactive to assessment years beginning on or after January 1, 2023, see Code editor’s note at the beginning of this Code volume
Subsection 1, paragraph d, subparagraph (3) amended
Subsection 1, paragraph e stricken and rewritten
425.12Indian land.Each forty acres of land, or fraction thereof, occupied by a member or members of the Sac and Fox Indians in Tama county, which land is held in trust by the secretary of the interior of the United States for said Indians, shall be given a homestead tax exemption and credit within the meaning and under the provisions of this subchapter. Application for such homestead tax exemption and credit shall be made to the county auditor of Tama county and may be made by a representative of the tribal council.[C39, §6943.153; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.12]2021 Acts, ch 41, §12, 36, 2023 Acts, ch 71, §40, 48, 49Referred to in 25B.72023 amendment applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Section amended
425.13Conspiracy to defraud.If any two or more persons conspire and confederate together with fraudulent intent to obtain the exemption or credit provided for under the terms of this subchapter by making a false deed, or a false contract of purchase, they are guilty of a fraudulent practice.[C39, §6943.154; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §425.13]2021 Acts, ch 41, §13, 36, 2023 Acts, ch 71, §41, 48, 49Referred to in 25B.7Fraudulent practices, see §714.8 – 714.14
2023 amendment applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Section amended
425.14False affidavits.Repealed by 2001 Acts, ch 154, §5, 6. See §425.7. 425.15Disabled veteran tax credit.1. If the owner of a homestead allowed a credit under this subchapter is any of the following, the credit allowed on the homestead from the homestead credit fund shall be the entire amount of the tax levied on the homestead: a. A veteran of any of the military forces of the United States, who acquired the homestead under 38 U.S.C. §21.801, 21.802, prior to August 6, 1991, or under 38 U.S.C. §2101, 2102.b. A veteran as defined in section 35.1 with a permanent service-connected disability rating of one hundred percent, as certified by the United States department of veterans affairs, or a permanent and total disability rating based on individual unemployability that is compensated at the one hundred percent disability rate, as certified by the United States department of veterans affairs.c. A former member of the national guard of any state who otherwise meets the service requirements of section 35.1, subsection 2, paragraph “b”, subparagraph (2) or (7), with a permanent service-connected disability rating of one hundred percent, as certified by the United States department of veterans affairs, or a permanent and total disability rating based on individual unemployability that is compensated at the one hundred percent disability rate, as certified by the United States department of veterans affairs.d. An individual who is a surviving spouse or a child and who is receiving dependency and indemnity compensation pursuant to 38 U.S.C. §1301 et seq., as certified by the United States department of veterans affairs.2.a. For an owner described in subsection 1, paragraph “a”, “b”, or “c”, the credit allowed shall be continued to the estate of an owner who is deceased or the surviving spouse and any child, as defined in section 234.1, who are the beneficiaries of a deceased owner, so long as the surviving spouse remains unmarried. b. An individual described in subsection 1, paragraph “d”, is no longer eligible for the credit upon termination of dependency and indemnity compensation under 38 U.S.C. §1301 et seq.3. An owner or a beneficiary of an owner who elects to secure the credit provided in this section is not eligible for any other real property tax exemption provided by law for veterans of military service.4. If an owner acquires a different homestead, the credit allowed under this section may be claimed on the new homestead unless the owner fails to meet the other requirements of this section.5.a. Except as provided in paragraph “b”, the list of the names and addresses of individuals allowed a credit under this section and maintained by the county recorder, county treasurer, county assessor, city assessor, or other government body is confidential information and shall not be disseminated to any person unless otherwise ordered by a court or released by the lawful custodian of the records pursuant to state or federal law. The county recorder, county treasurer, county assessor, city assessor, or other government body responsible for maintaining the names and addresses of individuals allowed a credit under this section may display such credit on individual paper records and individual electronic records, including display on an internet site.b. Upon request, a county recorder, county assessor, city assessor, or other entity may share information as described in paragraph “a” to a county veterans service officer for purposes of providing information on benefits and services available to veterans and their families.6. For purposes of this section, “permanent and total disability rating based on individual unemployability” means a condition under which a person has either a permanent service-connected disability rating of sixty percent or two or more permanent service-connected disability conditions in which one of the conditions has at least a forty percent rating and the combined rating for all the conditions is at least seventy percent, and the person has an administrative adjustment added to the service-connected disability rating, due to individual unemployability, such that the United States department of veterans affairs rates the veteran permanently and totally disabled for purposes of disability compensation.[C71, 73, 75, 77, 79, 81, §425.15]90 Acts, ch 1250, §7, 2002 Acts, ch 1151, §16, 36, 2014 Acts, ch 1117, §1 – 3, 2014 Acts, ch 1141, §22, 2015 Acts, ch 6, §1 – 5, 2020 Acts, ch 1057, §1, 2021 Acts, ch 41, §14, 36, 2021 Acts, ch 148, §1Referred to in 25B.7, 483A.24SUBCHAPTER IIPROPERTY TAX CREDIT OR RENT REIMBURSEMENT FOR ELDERLY AND DISABLED425.16Additional tax credit.1. In addition to the homestead tax credit allowed under section 425.1, subsections 1 through 4, and the homestead exemption under section 425.1A, if applicable, persons who own or rent their homesteads and who meet the qualifications provided in this subchapter are eligible for a property tax credit for property taxes due or reimbursement of rent constituting property taxes paid.2.a. The property tax credit for property taxes due under this subchapter shall be administered by the department of revenue, the assessor, and other county officials as provided in this subchapter.b. The reimbursement of rent constituting property taxes paid under this subchapter shall be administered by the department of health and human services as provided in this subchapter.[C75, 77, 79, 81, §425.16]2018 Acts, ch 1041, §127, 2020 Acts, ch 1063, §231, 2021 Acts, ch 41, §15, 36, 2021 Acts, ch 174, §18, 34, 39, 2023 Acts, ch 19, §1128, 2023 Acts, ch 71, §42, 48, 49Referred to in 25B.7, 427.92023 amendment to subsection 1 applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
Subsection 1 amended
Subsection 2, paragraph b amended
425.17Definitions.As used in this subchapter, unless the context otherwise requires:1. “Base year” means the calendar year last ending before the claim is filed.2.a. “Claimant” means any of the following:(1) A person filing a claim for credit under this subchapter who has attained the age of sixty-five years but who has not attained the age of seventy years on or before December 31 of the base year, a person filing a claim for credit or reimbursement under this subchapter who is totally disabled and was totally disabled on or before December 31 of the base year, or a person filing a claim for reimbursement under this subchapter who has attained the age of sixty-five years on or before December 31 of the base year and who is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate.(2) A person filing a claim for credit or reimbursement under this subchapter who has attained the age of twenty-three years on or before December 31 of the base year or was a head of household on December 31 of the base year, as defined in the Internal Revenue Code, but has not attained the age or disability status described in subparagraph (1) or the age status and eligibility criteria of subparagraph (3), and is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate, and was not claimed as a dependent on any other person’s tax return for the base year.(3) A person filing a claim for credit under this subchapter who has attained the age of seventy years on or before December 31 of the base year, who has a household income of less than two hundred fifty percent of the federal poverty level, as defined by the most recently revised poverty income guidelines published by the United States department of health and human services, and is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate.b. “Claimant” under paragraph “a” includes a vendee in possession under a contract for deed and may include one or more joint tenants or tenants in common. In the case of a claim for rent constituting property taxes paid, the claimant shall have rented the property during any part of the base year. In the case of a claim for property taxes due, the claimant shall have occupied the property during any part of the fiscal year beginning July 1 of the base year. If a homestead is occupied by two or more persons, and more than one person is able to qualify as a claimant, the persons may each file a claim based upon each person’s income and rent constituting property taxes paid or property taxes due.3. “Gross rent” means rental paid at arm’s length for the right of occupancy of a homestead or manufactured or mobile home, including rent for space occupied by a manufactured or mobile home not to exceed one acre. If the department of health and human services determines that the landlord and tenant have not dealt with each other at arm’s length, and the department of health and human services is satisfied that the gross rent charged was excessive, the department of health and human services shall adjust the gross rent to a reasonable amount as determined by the department of health and human services.4. “Homestead” means the dwelling owned or rented and actually used as a home by the claimant during the period specified in subsection 2, and so much of the land surrounding it including one or more contiguous lots or tracts of land, as is reasonably necessary for use of the dwelling as a home, and may consist of a part of a multidwelling or multipurpose building and a part of the land upon which it is built. It does not include personal property except that a manufactured or mobile home may be a homestead. Any dwelling or a part of a multidwelling or multipurpose building which is exempt from taxation, except for an exemption under section 425.1A, does not qualify as a homestead under this subchapter. However, solely for purposes of claimants living in a property and receiving reimbursement for rent constituting property taxes paid immediately before the property becomes tax exempt, and continuing to live in it after it becomes tax exempt, the property shall continue to be classified as a homestead. A homestead must be located in this state. When a person is confined in a nursing home, extended-care facility, or hospital, the person shall be considered as occupying or living in the person’s homestead if the person is the owner of the homestead and the person maintains the homestead and does not lease, rent, or otherwise receive profits from other persons for the use of the homestead.5. “Household” means a claimant and the claimant’s spouse if living with the claimant at any time during the base year. “Living with” refers to domicile and does not include a temporary visit.6. “Household income” means all income of the claimant and the claimant’s spouse in a household and actual monetary contributions received from any other person living with the claimant during their respective twelve-month income tax accounting periods ending with or during the base year.7. “Income” means the sum of Iowa net income as defined in section 422.7, plus all of the following to the extent not already included in Iowa net income: capital gains; alimony; child support money; cash public assistance and relief, except property tax relief granted under this subchapter; amount of in-kind assistance for housing expenses; total amounts received from a governmental or other pension or retirement plan, including defined benefit or defined contribution plans; annuities; individual retirement accounts; plans maintained or contributed to by an employer, or maintained or contributed to by a self-employed person as an employer; deferred compensation plans or any earnings attributable to the deferred compensation plans; income received pursuant to a farm tenancy agreement covering real property; railroad retirement benefits; payments received under the federal Social Security Act, except child insurance benefits received by a member of the claimant’s household; military retirement and veterans’ disability pensions; interest received from a state or federal government or any of its instrumentalities; workers’ compensation; and the gross amount of disability income or “loss of time” insurance. “Income” does not include gifts from nongovernmental sources, or surplus foods or other relief in kind supplied by a governmental agency. In determining income, net operating losses and net capital losses shall not be considered.8. “Property taxes due” means property taxes including any special assessments, but exclusive of delinquent interest and charges for services, due on a claimant’s homestead in this state, but includes only property taxes for which the claimant is liable and which will actually be paid by the claimant. However, if the claimant is a person whose property taxes have been suspended under sections 427.8 and 427.9, “property taxes due” means property taxes including any special assessments, but exclusive of delinquent interest and charges for services, due on a claimant’s homestead in this state, but includes only property taxes for which the claimant is liable and which would have to be paid by the claimant if the payment of the taxes has not been suspended pursuant to sections 427.8 and 427.9. “Property taxes due” shall be computed with no deduction for any credit under this subchapter or for any homestead credit allowed under subchapter I. Each claim shall be based upon the taxes due during the fiscal year next following the base year. If a homestead is owned by two or more persons as joint tenants or tenants in common, and one or more persons are not members of claimant’s household, “property taxes due” is that part of property taxes due on the homestead which equals the ownership percentage of the claimant and the claimant’s household. The county treasurer shall include with the tax receipt a statement that if the owner of the property is eighteen years of age or over, the person may be eligible for the credit allowed under this subchapter. If a homestead is an integral part of a farm, the claimant may use the total property taxes due for the larger unit. If a homestead is an integral part of a multidwelling or multipurpose building the property taxes due for the purpose of this subsection shall be prorated to reflect the portion which the value of the property that the household occupies as its homestead is to the value of the entire structure. For purposes of this subsection, “unit” refers to that parcel of property covered by a single tax statement of which the homestead is a part.9. “Rent constituting property taxes paid” means twenty-three percent of the gross rent actually paid in cash or its equivalent during the base year by the claimant or the claimant’s household solely for the right of occupancy of their homestead in the base year, and which rent constitutes the basis, in the succeeding year, of a claim for reimbursement under this subchapter by the claimant.10. “Special assessment” means an unpaid special assessment certified pursuant to chapter 384, subchapter IV. The claimant may include as a portion of the taxes due during the fiscal year next following the base year an amount equal to the unpaid special assessment installment due, plus interest, during the fiscal year next following the base year.11. “Totally disabled” means the inability to engage in any substantial gainful employment by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or is reasonably expected to last for a continuous period of not less than twelve months.[C75, 77, 79, 81, §425.17; 1982 Acts, ch 1214, §1,2,4]88 Acts, ch 1139, §2, 3, 89 Acts, ch 233, §1, 90 Acts, ch 1250, §6, 91 Acts, ch 191, §19, 124, 92 Acts, ch 1016, §41, Acts, ch , §, 93 Acts, ch 156, §1, 2, 93 Acts, ch 180, §4, 15, 16, 22, 23, 94 Acts, ch 1125, §1, 2, 5, 94 Acts, ch 1165, §26, 50, 99 Acts, ch 152, §13, 40, 2001 Acts, ch 153, §15, 2001 Acts, ch 176, §80, 2003 Acts, ch 145, §286, 2011 Acts, ch 25, §89, 2015 Acts, ch 109, §8, 75, 2018 Acts, ch 1041, §127, 2019 Acts, ch 24, §51, 2021 Acts, ch 41, §16, 36, 2021 Acts, ch 177, §125, 131, 2023 Acts, ch 19, §1129, 2023 Acts, ch 71, §43, 48, 49, 2023 Acts, ch 115, §48 – 50Referred to in 25B.7, 425.23, 425.24, 425.39, 425.40, 427.9, 435.222021 amendment to subsection 2 applies to claims under chapter 425, subchapter II, filed on or after January 1, 2022; 2021 Acts, ch 177, §131
2023 amendment to subsections 4 and 8 applies retroactively to assessment years beginning on or after January 1, 2023; 2023 Acts, ch 71, §49
2023 amendment to subsection 7 applies to claims under chapter 425, subchapter II, for credits against property taxes due and payable in fiscal years beginning on or after July 1, 2024; 2023 Acts, ch 115, §50
Subsections 3, 4, 7, and 8 amended
425.18Right to file a claim.The right to file a claim for reimbursement or credit under this subchapter may be exercised by the claimant or on behalf of a claimant by the claimant’s legal guardian, spouse, or attorney, or by the executor or administrator of the claimant’s estate. If a claimant dies after having filed a claim for reimbursement for rent constituting property taxes paid, the amount of the reimbursement may be paid to another member of the household as determined by the department of health and human services. If the claimant was the only member of the household, the reimbursement may be paid to the claimant’s executor or administrator, but if neither is appointed and qualified within one year from the date of the filing of the claim, the reimbursement shall escheat to the state. If a claimant dies after having filed a claim for credit for property taxes due, the amount of credit shall be paid as if the claimant had not died.[C75, 77, 79, 81, §425.18; 1982 Acts, ch 1214, §3,4]83 Acts, ch 111, §1, 4, 2015 Acts, ch 109, §9, 75, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §17, 36, 2021 Acts, ch 174, §19, 34, 39, 2023 Acts, ch 19, §1130Referred to in 25B.7, 427.9Section amended
425.19Claim and credit or reimbursement.Subject to the limitations provided in this subchapter, a claimant may annually claim a credit for property taxes due during the fiscal year next following the base year or claim a reimbursement for rent constituting property taxes paid in the base year. The amount of the credit for property taxes due for a homestead shall be paid on June 15 of each year from the elderly and disabled property tax credit fund under section 425.39, subsection 1, by the director of revenue to the county treasurer who shall credit the money received against the amount of the property taxes due and payable on the homestead of the claimant and the amount of the reimbursement for rent constituting property taxes paid shall be paid by the director of health and human services to the claimant from the reimbursement fund under section 425.39, subsection 2, on or before December 31 of each year.[C75, 77, 79, 81, §425.19]83 Acts, ch 172, §4, 99 Acts, ch 152, §14, 40, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §18, 36, 2023 Acts, ch 19, §1131Referred to in 25B.7, 427.9Section amended
425.20Filing dates affidavit extension.1. A claim for reimbursement for rent constituting property taxes paid shall not be paid or allowed, unless the claim is filed with and in the possession of the department of health and human services on or before June 1 of the year following the base year.2. A claim for credit for property taxes due shall not be paid or allowed unless the claim is filed with the county treasurer between January 1 and June 1, both dates inclusive, immediately preceding the fiscal year during which the property taxes are due. However, in case of sickness, absence, or other disability of the claimant, or if in the judgment of the county treasurer good cause exists, the county treasurer may extend the time for filing a claim for credit through March 31 of the fiscal year during which the property taxes are due. The county treasurer shall certify to the director of revenue on or before May 1 of each year the total amount of dollars due for claims allowed.3. In case of sickness, absence, or other disability of the claimant or if, in the judgment of the director of revenue or the director of health and human services, as applicable, good cause exists and the claimant requests an extension, the director of health and human services may extend the time for filing a claim for reimbursement and the director of revenue may extend the time for filing a claim for credit. However, any further time granted shall not extend beyond December 31 of the year following the year in which the claim was required to be filed. Claims filed as a result of this subsection shall be filed with the director of health and human services or the director of revenue, as applicable, who shall provide for the reimbursement of the claim to the claimant.[C75, 77, 79, 81, §425.20; 1981 Acts, ch 4, §1]83 Acts, ch 111, §2, 4, 88 Acts, ch 1050, §1, 94 Acts, ch 1125, §3, 5, 94 Acts, ch 1165, §27, 50, 96 Acts, ch 1167, §3, 8, 2003 Acts, ch 145, §286, 2018 Acts, ch 1041, §92, 2021 Acts, ch 41, §19, 36, 2023 Acts, ch 19, §1132, 2023 Acts, ch 94, §1, 3, 4Referred to in 25B.7, 427.92023 amendment to subsection 2 applies to taxes due and payable in fiscal years beginning on or after July 1, 2023; 2023 Acts, ch 94, §4
Subsections 1 – 3 amended
425.21Satisfaction of outstanding tax liabilities.The amount of any claim for credit or reimbursement payable under this subchapter may be applied by the department of revenue against any tax liability, delinquent accounts, charges, loans, fees, or other indebtedness due the state or state agency that has a formal agreement with the department for central debt collection, outstanding on the books of the department against the claimant, or against a spouse who was a member of the claimant’s household in the base year.[C75, 77, 79, 81, §425.21]99 Acts, ch 152, §15, 40, 2001 Acts, ch 24, §51, 2003 Acts, ch 145, §286, 2018 Acts, ch 1041, §127Referred to in 25B.7, 427.9425.22One claimant per household.Only one claimant per household per year shall be entitled to reimbursement under this subchapter and only one claimant per household per fiscal year shall be entitled to a credit under this subchapter.[C75, 77, 79, 81, §425.22]2018 Acts, ch 1041, §127Referred to in 25B.7, 427.9425.23Schedule for claims for credit or reimbursement.The amount of any claim for credit or reimbursement filed under this subchapter shall be determined as provided in this section.1.a. The tentative credit or reimbursement for a claimant described in section 425.17, subsection 2, paragraph “a”, subparagraph (1), shall be determined in accordance with the following schedule:Percent of property taxesdue or rent constitutingproperty taxes paid If the householdallowed as a credit or income is:reimbursement: $ 08,499.99100% 8,5009,499.99 85 9,50010,499.99 7010,50012,499.99 5012,50014,499.99 3514,50016,499.99 25b. If moneys have been appropriated to the fund created in section 425.40, the tentative credit or reimbursement for a claimant described in section 425.17, subsection 2, paragraph “a”, subparagraph (2), shall be determined as follows:(1) If the amount appropriated under section 425.40 plus any supplemental appropriation made for a fiscal year for purposes of this lettered paragraph is at least twenty-seven million dollars, the tentative credit or reimbursement shall be determined in accordance with the following schedule:Percent of property taxesdue or rent constitutingproperty taxes paid If the householdallowed as a credit or income is:reimbursement: $ 0 — 8,499.99100% 8,500 — 9,499.99 85 9,500 — 10,499.99 7010,500 — 12,499.99 5012,500 — 14,499.99 3514,500 — 16,499.99 25(2) If the amount appropriated under section 425.40 plus any supplemental appropriation made for a fiscal year for purposes of this lettered paragraph is less than twenty-seven million dollars the tentative credit or reimbursement shall be determined in accordance with the following schedule:Percent of property taxesdue or rent constitutingproperty taxes paid If the householdallowed as a credit or income is:reimbursement: $ 0 — 8,499.9950% 8,500 — 9,499.9942 9,500 — 10,499.993510,500 — 12,499.992512,500 — 14,499.991714,500 — 16,499.9912c. The tentative credit for a claimant described in section 425.17, subsection 2, paragraph “a”, subparagraph (3), shall be the greater of the following:(1) The amount of the credit under the schedule specified in paragraph “a” of this subsection as if the claimant was a claimant as defined in section 425.17, subsection 2, paragraph “a”, subparagraph (1), filing for a credit under paragraph “a” of this subsection.(2) The difference between the actual amount of property taxes due on the homestead during the fiscal year next following the base year minus the actual amount of property taxes due on the homestead during the first fiscal year for which the claimant filed a claim for a credit calculated under this paragraph “c” and for which the property taxes due on the homestead were calculated on an assessed valuation that was not a partial assessment and if the claimant has filed for the credit calculated under this paragraph “c” for each of the subsequent fiscal years after the first credit claimed.2. The actual credit for property taxes due shall be determined by subtracting from the tentative credit the amount of the homestead credit under section 425.1 which is allowed as a credit against property taxes due in the fiscal year next following the base year by the claimant or any person of the claimant’s household. If the subtraction produces a negative amount, there shall be no credit but no refund shall be required. The actual reimbursement for rent constituting property taxes paid shall be equal to the tentative reimbursement.3.a. A person who is eligible to file a claim for credit for property taxes due and who has a household income of eight thousand five hundred dollars or less and who has an unpaid special assessment levied against the homestead may file a claim for a special assessment credit with the county treasurer. The department of revenue shall provide to the respective treasurers the forms necessary for the administration of this subsection. The claim shall be filed not later than September 30 of each year. Upon the filing of the claim, interest for late payment shall not accrue against the amount of the unpaid special assessment due and payable. The claim filed by the claimant constitutes a claim for credit of an amount equal to the actual amount due upon the unpaid special assessment, plus interest, payable during the fiscal year for which the claim is filed against the homestead of the claimant. However, where the claimant is an individual described in section 425.17, subsection 2, paragraph “a”, subparagraph (2), and the tentative credit is determined according to the schedule in subsection 1, paragraph “b”, subparagraph (2), of this section, the claim filed constitutes a claim for credit of an amount equal to one-half of the actual amount due and payable during the fiscal year. The treasurer shall certify to the director of revenue not later than October 15 of each year the total amount of dollars due for claims allowed. The amount of reimbursement due each county shall be certified by the director of revenue and paid by the director of the department of administrative services by November 15 of each year, drawn upon warrants payable to the respective treasurer. There is appropriated annually from the general fund of the state to the department of revenue an amount sufficient to carry out the provisions of this subsection. The treasurer shall credit any moneys received from the department of revenue against the amount of the unpaid special assessment due and payable on the homestead of the claimant.b. For purposes of this subsection, in computing household income, a person with a total disability shall deduct all medical and necessary care expenses paid during the twelve-month income tax accounting periods used in computing household income which are attributable to the person’s total disability. “Medical and necessary care expenses” are those used in computing the federal income tax deduction under section 213 of the Internal Revenue Code as defined in section 422.3.4.a. For the base year beginning in the 1999 calendar year and for each subsequent base year, the dollar amounts set forth in subsection 1, paragraphs “a” and “b”, and subsection 3 shall be multiplied by the cumulative adjustment factor for that base year. “Cumulative adjustment factor” means the product of the annual adjustment factor for the 1998 base year and all annual adjustment factors for subsequent base years. The cumulative adjustment factor applies to the base year beginning in the calendar year for which the latest annual adjustment factor has been determined.b. The annual adjustment factor for the 1998 base year is one hundred percent. For each subsequent base year, the annual adjustment factor equals the annual inflation factor for the calendar year, in which the base year begins, as computed in section 422.4 for purposes of the individual income tax.c. The cumulative adjustment factor shall be determined annually by the department of revenue.[C71, 73, §425.1(5); C75, 77, 79, 81, §425.23]83 Acts, ch 172, §5, 83 Acts, ch 189, §3, 5, 6, 84 Acts, ch 1305, §35, 88 Acts, ch 1139, §4, 90 Acts, ch 1250, §8, 9, 91 Acts, ch 267, §524, 92 Acts, ch 1016, §13, 42, Acts, ch , §, 93 Acts, ch 180, §5, 6, 15, 16, 22, 23, 96 Acts, ch 1129, §93, 96 Acts, ch 1167, §4, 8, 98 Acts, ch 1177, §12 – 14, 16, 2003 Acts, ch 145, §286, 2004 Acts, ch 1101, §49, 2011 Acts, ch 25, §131 – 133, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §20, 21, 36, 2021 Acts, ch 177, §126 – 128, 131Referred to in 25B.7, 425.24, 425.39, 427.9, 435.222021 amendment to subsection 1, paragraph a, unnumbered paragraph 1 applies to claims under chapter 425, subchapter II, filed on or after January 1, 2022; 2021 Acts, ch 177, §131
Subsection 1, paragraph c applies to claims under chapter 425, subchapter II, filed on or after January 1, 2022; 2021 Acts, ch 177, §131
2021 amendment to subsection 4, paragraph a applies to claims under chapter 425, subchapter II, filed on or after January 1, 2022; 2021 Acts, ch 177, §131
425.24Maximum property tax for purpose of credit or reimbursement.For claimants under section 425.17, subsection 2, paragraph “a”, subparagraphs (1) and (2), and for the calculation under section 425.23, subsection 1, paragraph “c”, subparagraph (1), in any case in which property taxes due or rent constituting property taxes paid for any household exceeds one thousand dollars, the amount of property taxes due or rent constituting property taxes paid shall be deemed to have been one thousand dollars for purposes of this subchapter.[C75, 77, 79, 81, §425.24]2018 Acts, ch 1041, §127, 2021 Acts, ch 177, §129, 131Referred to in 25B.7, 427.92021 amendment applies to claims under chapter 425, subchapter II, filed on or after January 1, 2022; 2021 Acts, ch 177, §131
425.25Administration claim forms.1. The director of revenue shall make available suitable forms with instructions for claimants of the credit for property taxes due. Each assessor and county treasurer shall make available the forms and instructions. The claim shall be in a form as the director of revenue may prescribe. The director shall also devise a tax credit table, with amounts rounded to the nearest even whole dollar. Credits in the amount of less than one dollar shall not be paid.2. The director of health and human services shall make available suitable forms with instructions for claimants of the reimbursement for rent constituting property taxes paid. The claim shall be in a form as the director of health and human services may prescribe. The director of revenue shall devise a reimbursement table with amounts rounded to the nearest even whole dollar and provide such table to the director of health and human services. Reimbursements in the amount of less than one dollar shall not be paid.[C71, 73, §425.1(5); C75, 77, 79, 81, §425.25]84 Acts, ch 1190, §1, 2003 Acts, ch 145, §286, 2021 Acts, ch 41, §22, 36, 2023 Acts, ch 19, §1133Referred to in 25B.7, 331.559, 427.9Subsection 2 amended
425.26Proof of claim.1. Every claimant for the credit for property taxes due shall give the department of revenue, in support of the claim, reasonable proof of:a. Age and total disability, if any.b. Property taxes due.c. Homestead credit allowed against property taxes due.d. Changes of homestead.e. Household membership.f. Household income.g. Size and nature of property claimed as the homestead.2. Every claimant for reimbursement of rent constituting property taxes paid shall give the department of health and human services, in support of the claim, reasonable proof of:a. Age and total disability, if any.b. Rent constituting property taxes paid, including the name and address of the owner or manager of the property rented and a statement whether the claimant is related by blood, marriage, or adoption to the owner or manager of the property rented.c. Changes of homestead.d. Household membership.e. Household income.f. Size and nature of property claimed as the homestead.3. The department of revenue or the department of health and human services may require any additional proof necessary to support a claim.[C71, 73, §425.1(5); C75, 77, 79, 81, §425.26]83 Acts, ch 111, §3, 4, 85 Acts, ch 67, §44, 94 Acts, ch 1125, §4, 5, 94 Acts, ch 1165, §28, 2003 Acts, ch 145, §286, 2011 Acts, ch 25, §143, 2015 Acts, ch 109, §10, 75, 2021 Acts, ch 41, §23, 36, 2023 Acts, ch 19, §1134, 1135Referred to in 25B.7, 427.9Subsection 2, unnumbered paragraph 1 amended
Subsection 3 amended
425.27Audit recalculation or denial appeals.1.a. The department of revenue is responsible for the audit of claims for credit of property taxes due under this subchapter.b. The department of health and human services is responsible for the audit of claims for reimbursement for rent constituting property taxes paid under this subchapter.2. If on the audit of a claim for credit under this subchapter, the department of revenue determines the amount of the claim to have been incorrectly calculated or that the claim is not allowable, the department of revenue shall recalculate the claim and notify the claimant of the recalculation or denial and the reasons for it. The recalculation of the claim shall be final unless appealed to the director of revenue within thirty days from the date of notice of recalculation or denial. The director of revenue shall grant a hearing, and upon hearing determine the correct claim, if any, and notify the claimant of the decision by mail. The department of revenue shall not adjust a claim after three years from October 31 of the year in which the claim was filed. If the claim for credit has been paid, the department of revenue shall give notification to the claimant and the county treasurer of the recalculation or denial of the claim and the county treasurer shall proceed to collect the tax owed in the same manner as other property taxes due and payable are collected, if the property on which the credit was granted is still owned by the claimant, and repay the amount to the director upon collection. If the property on which the credit was granted is not owned by the claimant, the amount may be recovered from the claimant by assessment in the same manner that income taxes are assessed under sections 422.26 and 422.30. The decision of the director of revenue shall be final unless appealed as provided in section 425.31.3. If on the audit of a claim for reimbursement for rent constituting property taxes paid under this subchapter, the department of health and human services determines the amount of the claim to have been incorrectly calculated or that the claim is not allowable, the department of health and human services shall recalculate the claim and notify the claimant of the recalculation or denial and the reasons for it. The recalculation of the claim shall be final unless appealed to the director of health and human services within thirty days from the date of notice of recalculation or denial. The director of health and human services shall grant a hearing, and upon hearing determine the correct claim, if any, and notify the claimant of the decision by mail. The department of health and human services shall not adjust a claim after three years from October 31 of the year in which the claim was filed. If the claim for reimbursement has been paid, the amount may be recovered by the department of health and human services. The decision of the director of health and human services shall be final unless appealed as provided in section 425.31.4.a. For the purpose of administering the credit for property taxes due, including the duties of the director of revenue and the department of revenue, section 422.70 is applicable with respect to this subchapter.b. For the purpose of administering the reimbursement for rent constituting property taxes paid, including the duties of the director of health and human services and the department of health and human services under this subchapter, the director of health and human services shall have the same powers as those described in section 422.70.[C75, 77, 79, 81, §425.27]84 Acts, ch 1190, §2, 88 Acts, ch 1050, §2, 2015 Acts, ch 109, §11, 75, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §24, 36, 2023 Acts, ch 19, §1136 – 1138Referred to in 25B.7, 425.29, 427.9Subsection 1, paragraph b amended
Subsection 3 amended
Subsection 4, paragraph b amended
425.28Waiver of confidentiality.1. A claimant for the credit for property taxes due shall expressly waive any right to confidentiality relating to all income tax information obtainable through the department of revenue, including all information covered by sections 422.20 and 422.72. This waiver shall apply to information available to the county treasurer who shall hold the information confidential except that it may be used as evidence to disallow the credit.2. A claimant for reimbursement of rent constituting property taxes paid shall expressly waive any right to confidentiality relating to all income tax information obtainable by the department of health and human services.3. For the effective administration of this subchapter, the department of revenue and the department of health and human services shall share information obtained by each department from claimants under this subchapter.4. In addition to the sharing of information under subsection 3, the department of health and human services may release information pertaining to a person’s eligibility or claim for or receipt of rent reimbursement to an employee of the department of inspections, appeals, and licensing in the employee’s official conduct of an audit or investigation.[C71, 73, §425.1(5); C75, 77, 79, 81, §425.28]94 Acts, ch 1165, §29, 99 Acts, ch 139, §1, 2003 Acts, ch 145, §286, 2019 Acts, ch 24, §104, 2021 Acts, ch 41, §25, 36, 2023 Acts, ch 19, §1139, 2018Referred to in 25B.7, 427.9See Code editor’s note on simple harmonization at the beginning of this Code volume
Subsections 2, 3, and 4 amended
425.29False claim penalty.1. A person who makes a false affidavit for the purpose of obtaining credit or reimbursement provided for in this subchapter or who knowingly receives the credit or reimbursement without being legally entitled to it or makes claim for the credit or reimbursement in more than one county in the state without being legally entitled to it is guilty of a fraudulent practice. The claim for credit or reimbursement shall be disallowed in full and if the claim has been paid the amount shall be recovered in the manner provided in section 425.27.2. In the case of a claim for credit disallowed by the department of revenue, the department of revenue may impose penalties under section 421.27. The department of revenue shall send a notice of disallowance of the claim.3. In the case of a claim for reimbursement disallowed by the department of health and human services, the department of health and human services may impose penalties described in section 421.27. The department of health and human services shall send a notice of disallowance of the claim.[C71, 73, §425.1(5); C75, 77, 79, 81, §425.29]83 Acts, ch 160, §10, 99 Acts, ch 152, §16, 40, 2003 Acts, ch 145, §286, 2015 Acts, ch 109, §12, 75, 2018 Acts, ch 1041, §127, 2018 Acts, ch 1161, §18, 20, 2021 Acts, ch 41, §26, 36, 2023 Acts, ch 19, §1140Referred to in 25B.7, 427.9Fraudulent practices, see §714.8 – 714.14
Legislative intent regarding amendment by 2018 Acts, ch 1161, §; 2018 Acts, ch 1161, §19
Subsection 3 amended
425.30Notices.1. A notice authorized or required under this subchapter related to a credit for property taxes due may be given by mailing the notice to the person for whom it is intended, addressed to that person at the address given in the last credit claim form filed by the person pursuant to this subchapter, or if no return has been filed, then to any address obtainable.2. A notice authorized or required under this subchapter related to a reimbursement for rent constituting property taxes paid may be given by mailing the notice to the person for whom it is intended, addressed to that person at the address given in the reimbursement claim form filed by the person pursuant to this subchapter, or if no return has been filed, then to any address obtainable.3. The mailing of the notice is presumptive evidence of the receipt of the notice by the person to whom addressed. Any period of time which is determined according to this subchapter by the giving of notice commences to run from the date of mailing of the notice.[C75, 77, 79, 81, §425.30]2003 Acts, ch 2, §194, 205, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §27, 36Referred to in 25B.7, 427.9425.31Appeals.1. Judicial review of the actions of the director of revenue or the department of revenue under this subchapter may be sought in accordance with the terms of chapter 17A and the rules of the department of revenue.2. Judicial review of the actions of the director of health and human services or the department of health and human services under this subchapter may be sought in accordance with the terms of chapter 17A and the rules of the department of health and human services.3. For cause and upon a showing by the director of revenue or the director of health and human services, as applicable, that collection of the amount in dispute is in doubt, the court may order the petitioner to file with the clerk a bond for the use of the respondent, with sureties approved by the clerk, equal to the amount appealed from, conditioned that the petitioner shall perform the orders of the court.4. An appeal may be taken by the claimant or the director of revenue or the director of health and human services, as applicable, to the supreme court of this state irrespective of the amount involved.[C75, 77, 79, 81, §425.31]2003 Acts, ch 145, §286, 2003 Acts, ch 2, §195, 205, 2015 Acts, ch 109, §13, 75, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §28, 36, 2023 Acts, ch 19, §1141Referred to in 25B.7, 425.27, 425.34, 427.9Subsections 2, 3, and 4 amended
425.32Disallowance of certain claims for credit.A claim for credit for property taxes due shall be disallowed if the department of revenue finds that the claimant or a person of the claimant’s household received title to the homestead primarily for the purpose of receiving benefits under this subchapter.[C75, 77, 79, 81, §425.32]2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §29, 36Referred to in 25B.7, 427.9425.33Rent increase request and order for reduction.1. If upon petition by a claimant the department of health and human services determines that a landlord has increased the claimant’s rent primarily because the claimant is eligible for reimbursement under this subchapter, the department of health and human services shall request the landlord by mail to reduce the rent appropriately.2. In determining whether a landlord has increased a claimant’s rent primarily because the claimant is eligible for reimbursement under this subchapter, the department of health and human services shall consider the following factors:a. The amount of the increase in rent.b. If the landlord operates other rental property, whether a similar increase was imposed on the other rental property.c. Increased or decreased costs of materials, supplies, services, and taxes in the area.d. The time the rent was increased.e. Other relevant factors in each particular case.3. If the landlord fails to comply with the request of the department of health and human services within fifteen days after the request is mailed, the department of health and human services shall order the rent reduced by an appropriate amount.[C75, 77, 79, 81, §425.33]86 Acts, ch 1241, §33, 2003 Acts, ch 145, §286, 2011 Acts, ch 25, §143, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §30, 36, 2023 Acts, ch 19, §1142 – 1144Referred to in 25B.7, 427.9, 435.33Subsection 1 amended
Subsection 2, unnumbered paragraph 1 amended
Subsection 3 amended
425.34Rent increase hearings and appeals.1. If the department of health and human services orders a landlord to reduce rent to a claimant, then upon the request of the landlord the department of health and human services shall hold a prompt hearing of the matter, to be conducted in accordance with the rules of the department. The department of health and human services shall give notice of the decision by mail to the claimant and to the landlord.2. The claimant and the landlord shall have the rights of appeal and review as provided in section 425.31.[C75, 77, 79, 81, §425.343]86 Acts, ch 1241, §34, 2003 Acts, ch 145, §286, 2021 Acts, ch 41, §31, 36, 2023 Acts, ch 19, §1145Referred to in 25B.7, 427.9, 435.33Subsection 1 amended
425.35Defense to action for nonpayment of rent.It is an affirmative defense to any action by a landlord based upon nonpayment or partial payment of rent that the landlord increased the rent primarily because the tenant had received, or was eligible for, reimbursement under this subchapter.[C75, 77, 79, 81, §425.35]2018 Acts, ch 1041, §127Referred to in 25B.7, 427.9, 435.33425.36Discrimination in rentals or rent charges.Discrimination by a landlord in the rental of or in rent charges for a homestead because the tenant has received or is eligible for reimbursement under this subchapter is a simple misdemeanor.[C75, 77, 79, 81, §425.36]2018 Acts, ch 1041, §127Referred to in 25B.7, 427.9, 435.33425.37Rules.The director of revenue and the director of health and human services shall each adopt rules in accordance with chapter 17A for the interpretation and proper administration of this subchapter and each department’s applicable powers and duties under this subchapter, including rules to prevent and disallow duplication of benefits and to prevent any unreasonable hardship or advantage to any person.[C75, 77, 79, 81, §425.37]2003 Acts, ch 145, §286, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §32, 36, 2023 Acts, ch 19, §1146Referred to in 25B.7, 427.9Section amended
425.38 Reserved.425.39Funds created appropriations priority.1.a. The elderly and disabled property tax credit fund is created. There is appropriated annually from the general fund of the state to the department of revenue to be credited to the elderly and disabled property tax credit fund, from funds not otherwise appropriated, an amount sufficient to implement this subchapter for credits for property taxes due for claimants described in section 425.17, subsection 2, paragraph “a”, subparagraphs (1) and (3), subject to paragraph “b”.b. Regardless of the amount of the credit determined under section 425.23, subsection 1, paragraph “c”, the amount paid by the director of revenue to each county treasurer for credits for claimants described under section 425.17, subsection 2, paragraph “a”, subparagraph (3), shall not exceed the amount calculated for the claimant under section 425.23, subsection 1, paragraph “c”, subparagraph (1), and section 25B.7, subsection 1, shall not apply to the amount of the credit in excess of the amount paid by the director of revenue.2. The elderly and disabled rent reimbursement fund is created. There is appropriated annually from the general fund of the state to the department of health and human services to be credited to the elderly and disabled rent reimbursement fund, from funds not otherwise appropriated, an amount sufficient to implement this subchapter for reimbursement for rent constituting property taxes paid for claimants described in section 425.17, subsection 2, paragraph “a”, subparagraph (1).[C75, 77, 79, 81, §425.39]86 Acts, ch 1244, §51, 93 Acts, ch 180, §8, 97 Acts, ch 206, §7, 8, 10, 2003 Acts, ch 145, §286, 2011 Acts, ch 25, §134, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §33, 36, 2021 Acts, ch 177, §130, 131, 2023 Acts, ch 19, §1147Referred to in 25B.7, 425.192021 amendment to subsection 1 by 2021 Acts, ch 177, §130 applies to claims under chapter 425, subchapter II, filed on or after January 1, 2022; 2021 Acts, ch 177, §131
Subsection 2 amended
425.40Low-income fund created.1. A low-income tax credit and reimbursement fund is created. Within the low-income tax credit and reimbursement fund, a rent reimbursement account is created under the control of the department of health and human services and a tax credit account is created under the control of the department of revenue. Amounts appropriated to the fund shall first be credited to the rent reimbursement account.2.a. The director of health and human services shall use amounts credited to the rent reimbursement account for a fiscal year to pay all claims for reimbursement of rent constituting property taxes paid for claimants described in section 425.17, subsection 2, paragraph “a”, subparagraph (2). If the amount appropriated for purposes of this section for a fiscal year and credited to the rent reimbursement account is insufficient to pay all claims in full, the director of health and human services shall pay all such claims on a pro rata basis. b. If the amount appropriated for purposes of this section for a fiscal year and credited to the rent reimbursement account exceeds the amount necessary to pay in full all reimbursement claims for the fiscal year, the department of health and human services shall transfer such excess amount to the department of revenue for deposit in the tax credit account. The department of revenue shall use any amounts credited to the tax credit account for a fiscal year to pay to the counties all claims for credit for property taxes due for the fiscal year, or if such amount is insufficient, to pay to the counties all such claims on a pro rata basis.3. In order for the director of revenue or the director of health and human services to carry out the requirements of subsection 2, notwithstanding any provision to the contrary in this subchapter, claims for reimbursement for rent constituting property taxes paid filed before May 1 of the fiscal year shall be eligible to be paid in full during the fiscal year and those claims filed on or after May 1 of the fiscal year shall be eligible to be paid during the following fiscal year and the director of revenue is not required to make payments to counties for the property tax credit before June 15 of the fiscal year.93 Acts, ch 180, §9, 22, 97 Acts, ch 23, §48, 2003 Acts, ch 145, §286, 2018 Acts, ch 1041, §127, 2021 Acts, ch 41, §34, 36, 2021 Acts, ch 174, §20, 34, 39, 2023 Acts, ch 19, §1148Referred to in 25B.7, 425.23Section amended