Bill Text: IA HF250 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act providing a property assessment adjustment and a property tax adjustment for certain property of persons who have attained the age of sixty-five, applying income limitations, providing a penalty, and including retroactive and other applicability provisions.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2018-06-01 - NOBA: Graybook [HF250 Detail]
Download: Iowa-2017-HF250-Introduced.html
House File 250 - Introduced HOUSE FILE BY CARLIN, McKEAN, and FISHER A BILL FOR 1 An Act providing a property assessment adjustment and a 2 property tax adjustment for certain property of persons 3 who have attained the age of sixty=five, applying income 4 limitations, providing a penalty, and including retroactive 5 and other applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2090YH (3) 87 md/sc PAG LIN 1 1 Section 1. NEW SECTION. 425B.1 Homestead assessed value 1 2 adjustment ==== purpose. 1 3 Persons who own their homesteads and who meet the 1 4 qualifications provided in this chapter are eligible for 1 5 an adjustment in the assessed value of their homesteads or 1 6 an adjustment of the amount of taxes levied against their 1 7 homestead, as provided in this chapter, to prevent an increase 1 8 in such values or an increase in the amount of taxes levied. 1 9 Sec. 2. NEW SECTION. 425B.2 Definitions. 1 10 As used in this chapter, unless the context otherwise 1 11 requires: 1 12 1. "Assessed value" means the actual value prior to any 1 13 adjustment pursuant to section 441.21, subsection 4. 1 14 2. "Base assessment year" means the assessment year 1 15 beginning in the base year. 1 16 3. "Base year" means the calendar year last ending before 1 17 the claim is filed. 1 18 4. "Claimant" means a person filing a claim for adjustment 1 19 under this chapter who has attained the age of sixty=five years 1 20 on or before December 31 of the base year and is domiciled in 1 21 this state at the time the claim is filed or at the time of the 1 22 person's death in the case of a claim filed by the executor or 1 23 administrator of the claimant's estate. 1 24 5. "Homestead" means the same as defined in section 425.11. 1 25 6. "Household", "household income", and "income" mean the 1 26 same as defined in section 425.17. 1 27 7. "Owned" means owned by an owner as defined in section 1 28 425.11. 1 29 Sec. 3. NEW SECTION. 425B.3 Right to file a claim. 1 30 The right to file a claim for an assessed value adjustment 1 31 under this chapter may be exercised by the claimant or on 1 32 behalf of a claimant by the claimant's legal guardian, spouse, 1 33 or attorney, or by the executor or administrator of the 1 34 claimant's estate. If a claimant dies after having filed a 1 35 claim for adjustment, the amount of any adjustment shall be 2 1 made as if the claimant had not died. 2 2 Sec. 4. NEW SECTION. 425B.4 Claim for adjustment. 2 3 1. Subject to the limitations provided in this chapter, 2 4 a claimant may annually claim an adjustment of the assessed 2 5 value of the claimant's homestead for the base assessment year. 2 6 The adjustment claim shall be filed with the county assessor 2 7 between January 1 and February 15 immediately following 2 8 the close of the base assessment year. However, in case of 2 9 sickness, absence, or other disability of the claimant, or 2 10 if in the judgment of the county assessor good cause exists, 2 11 the county assessor may extend the time for filing a claim for 2 12 adjustment through June 30 of the same calendar year. 2 13 2. The county assessor shall notify the department of 2 14 revenue by March 1 of the number of claimants receiving 2 15 adjustments under this chapter and the total amount of the 2 16 reduced assessed values for the base assessment year. 2 17 Sec. 5. NEW SECTION. 425B.5 Adjustment ==== maximum tax 2 18 dollars levied. 2 19 1. If the income qualification specified in subsection 2 2 20 is met, the assessed value of the claimant's homestead in the 2 21 base assessment year shall be adjusted, but not increased, 2 22 to equal the assessed value, as such assessed value may have 2 23 been adjusted pursuant to this chapter, in the assessment year 2 24 preceding the base assessment year. If the amount of property 2 25 taxes levied against the adjusted assessment exceeds the amount 2 26 of property taxes levied against the property in the fiscal 2 27 year for which taxes were first levied against an adjusted 2 28 assessment under this chapter, the treasurer shall subtract the 2 29 difference from the amount due. The adjustments to assessed 2 30 value and to the amount of property taxes levied shall not be 2 31 construed to be exemptions or credits within the meaning of 2 32 section 25B.7. 2 33 2. A claimant is eligible for an adjustment to the assessed 2 34 value of the claimant's homestead if the claimant's household 2 35 income is less than thirty thousand dollars in the base year. 3 1 Sec. 6. NEW SECTION. 425B.6 Administration. 3 2 The director of revenue shall make available suitable forms 3 3 for claiming an assessed value adjustment with instructions 3 4 for claimants. Each assessor and county treasurer shall make 3 5 available the forms and instructions. The claim shall be in a 3 6 form as the director may prescribe. 3 7 Sec. 7. NEW SECTION. 425B.7 Proof of claim. 3 8 1. Every claimant shall give the department of revenue, in 3 9 support of the claim, reasonable proof of: 3 10 a. Age. 3 11 b. Changes of homestead. 3 12 c. Size and nature of the property claimed as the homestead. 3 13 d. Household income. 3 14 2. The director of revenue may require any additional proof 3 15 necessary to support a claim. 3 16 Sec. 8. NEW SECTION. 425B.8 Audit ==== denial. 3 17 If on the audit of a claim for adjustment under this 3 18 chapter, the director of revenue determines the claim is not 3 19 allowable, the director shall notify the claimant of the denial 3 20 and the reasons for it. The director shall not deny a claim 3 21 after three years from October 31 of the year in which the 3 22 claim was filed. The director shall give notification to the 3 23 county assessor of the denial of the claim and the county 3 24 assessor shall instruct the county treasurer to proceed to 3 25 collect the tax that would have been levied on the applicable 3 26 adjusted assessed value in the same manner as other property 3 27 taxes due and payable are collected, if the property on which 3 28 the adjustment was granted is still owned by the claimant. 3 29 However, if the claim was incorrectly allowed due to a clerical 3 30 error, error by a person other than the claimant, or an 3 31 innocent misrepresentation by or on behalf of the claimant, the 3 32 proceedings to collect the tax shall be limited to the taxes 3 33 due and payable in the twelve months immediately preceding the 3 34 disallowance. 3 35 Sec. 9. NEW SECTION. 425B.9 Waiver of confidentiality. 4 1 1. A claimant shall expressly waive any right to 4 2 confidentiality relating to all income tax information 4 3 obtainable through the department of revenue including all 4 4 information covered by sections 422.20 and 422.72. This waiver 4 5 shall apply to information available to the county assessor who 4 6 shall hold the information confidential except that it may be 4 7 used as evidence to disallow the assessed value adjustment. 4 8 2. The department of revenue may release information 4 9 pertaining to a person's eligibility or claim for or receipt of 4 10 the assessed value adjustment to an employee of the department 4 11 of inspections and appeals in the employee's official conduct 4 12 of an audit or investigation. 4 13 Sec. 10. NEW SECTION. 425B.10 False claim ==== penalty. 4 14 A person who makes a false affidavit for the purpose of 4 15 obtaining an adjustment in assessed value provided for in 4 16 this chapter or who knowingly receives the adjustment without 4 17 being legally entitled to it or makes claim for the adjustment 4 18 in more than one county in the state without being legally 4 19 entitled to it is guilty of a fraudulent practice. The claim 4 20 for adjustment shall be disallowed in full and property tax 4 21 shall be levied on the disallowed adjustment at the rate that 4 22 would have been levied but for the adjustment. The director of 4 23 revenue shall send a notice of disallowance of the claim. 4 24 Sec. 11. NEW SECTION. 425B.11 Notices, appeals, and 4 25 rules. 4 26 To the extent not otherwise contrary to the provisions of 4 27 this chapter: 4 28 1. Section 423.39, subsection 1, shall apply to all notices 4 29 under this chapter. 4 30 2. Any person aggrieved by an act or decision of the 4 31 director of revenue or the department of revenue under this 4 32 chapter shall have the same rights of appeal and review as 4 33 provided in section 423.38 and the rules of the department of 4 34 revenue. 4 35 3. A claim for adjustment shall be disallowed if the 5 1 department finds that the claimant or a person of the 5 2 claimant's household received title to the homestead primarily 5 3 for the purpose of receiving benefits under this chapter. 5 4 4. The department of revenue shall adopt rules pursuant to 5 5 chapter 17A to administer and interpret this chapter, including 5 6 rules to prevent and disallow duplication of benefits and to 5 7 prevent any unreasonable hardship or advantage to any person. 5 8 Sec. 12. APPLICABILITY. This Act applies retroactively to 5 9 January 1, 2017, for assessment years beginning on or after 5 10 that date and to the filing of claims on or after January 1, 5 11 2018, for adjustments of assessed values. 5 12 EXPLANATION 5 13 The inclusion of this explanation does not constitute agreement with 5 14 the explanation's substance by the members of the general assembly. 5 15 This bill provides for an adjustment in the assessed value of 5 16 a homestead, as defined in the bill, if the owner is a person 5 17 who is 65 or older and who has household income of less than 5 18 $30,000 per year. If the qualifications established in the 5 19 bill are met, the assessed value of the homestead upon which 5 20 property taxes are levied in a fiscal year is the same assessed 5 21 value as for the previous fiscal year. The bill specifies that 5 22 the assessed value is that value prior to any rollback being 5 23 applied. 5 24 The bill further provides that if the amount of property 5 25 taxes levied against the adjusted assessment exceeds the amount 5 26 of property taxes levied against the property in the fiscal 5 27 year for which taxes were first levied against an adjusted 5 28 assessment under the bill, the county treasurer is required to 5 29 subtract such difference from the amount due. The adjustments 5 30 to assessed value and to the amount of property taxes levied 5 31 under the bill shall not be construed to be exemptions or 5 32 credits within the meaning of Code section 25B.7. 5 33 The bill provides that a person who makes a false affidavit 5 34 for the purpose of obtaining an adjustment, knowingly receives 5 35 the adjustment without being legally entitled to it, or makes 6 1 claim for the adjustment in more than one county without being 6 2 legally entitled to it is guilty of a fraudulent practice and 6 3 is subject to a criminal penalty. 6 4 The bill applies retroactively to January 1, 2017, for 6 5 assessment years beginning on or after that date and applies to 6 6 claims filed on or after January 1, 2018, for the adjustments. LSB 2090YH (3) 87 md/sc
