Bill Text: IA SF120 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act establishing a homestead adjustment property tax credit for certain property of persons who have attained the age of sixty-five or who are totally disabled, applying income limitations, providing a penalty, making appropriations, and including retroactive and other applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-02-18 - Fiscal note. [SF120 Detail]
Download: Iowa-2021-SF120-Introduced.html
Senate
File
120
-
Introduced
SENATE
FILE
120
BY
CARLIN
A
BILL
FOR
An
Act
establishing
a
homestead
adjustment
property
tax
credit
1
for
certain
property
of
persons
who
have
attained
the
age
2
of
sixty-five
or
who
are
totally
disabled,
applying
income
3
limitations,
providing
a
penalty,
making
appropriations,
and
4
including
retroactive
and
other
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
425B.1
Homestead
adjustment
credit
1
——
purpose.
2
Persons
who
own
their
homesteads
and
who
meet
the
3
qualifications
provided
in
this
chapter
are
eligible
for
a
4
homestead
adjustment
credit,
as
provided
in
this
chapter,
to
5
prevent
an
increase
in
the
amount
of
property
taxes
owed.
6
Sec.
2.
NEW
SECTION
.
425B.2
Definitions.
7
As
used
in
this
chapter,
unless
the
context
otherwise
8
requires:
9
1.
“Base
assessment
year”
means
the
assessment
year
10
beginning
in
the
base
year.
11
2.
“Base
year”
means
the
calendar
year
last
ending
before
12
the
claim
is
filed.
13
3.
“Claimant”
means
a
person
filing
a
claim
for
a
credit
14
under
this
chapter
who
has
either
attained
the
age
of
15
sixty-five
years
on
or
before
December
31
of
the
base
year
or
16
is
totally
disabled
as
defined
in
section
425.17,
and
who
is
17
domiciled
in
this
state
at
the
time
the
claim
is
filed
or
at
the
18
time
of
the
person’s
death
in
the
case
of
a
claim
filed
by
the
19
executor
or
administrator
of
the
claimant’s
estate.
20
4.
“Homestead”
means
the
same
as
defined
in
section
425.11.
21
5.
“Household”
,
“household
income”
,
and
“income”
mean
the
22
same
as
defined
in
section
425.17.
23
6.
“Owned”
means
owned
by
an
owner
as
defined
in
section
24
425.11.
25
Sec.
3.
NEW
SECTION
.
425B.3
Right
to
file
a
claim.
26
The
right
to
file
a
claim
for
a
homestead
adjustment
27
credit
under
this
chapter
may
be
exercised
by
the
claimant
28
or
on
behalf
of
a
claimant
by
the
claimant’s
legal
guardian,
29
spouse,
or
attorney,
or
by
the
executor
or
administrator
of
the
30
claimant’s
estate.
If
a
claimant
dies
after
having
filed
a
31
claim
for
a
credit,
the
amount
of
the
credit
shall
be
made
as
if
32
the
claimant
had
not
died.
Only
one
claimant
per
household
per
33
fiscal
year
shall
be
entitled
to
a
credit
under
this
chapter.
34
Sec.
4.
NEW
SECTION
.
425B.4
Claim
for
credit.
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1.
Subject
to
the
limitations
provided
in
this
chapter,
a
1
claimant
may
annually
claim
a
homestead
adjustment
credit
for
2
the
claimant’s
homestead
for
the
base
assessment
year.
The
3
claim
shall
be
filed
with
the
county
assessor
for
approval
4
between
January
1
and
February
15
immediately
following
5
the
close
of
the
base
assessment
year.
However,
in
case
of
6
sickness,
absence,
or
other
disability
of
the
claimant,
or
if
7
in
the
judgment
of
the
county
assessor
good
cause
exists,
the
8
county
assessor
may
extend
the
time
for
filing
a
claim
through
9
June
30
of
the
same
calendar
year.
10
2.
The
assessor
shall
remit
the
list
of
approved
eligible
11
claims
to
the
county
auditor
by
July
6
of
each
year.
All
12
eligible
claims
for
credit
shall
be
certified
on
or
before
13
August
1,
in
each
year,
by
the
county
auditor
to
the
county
14
treasurer,
which
certificates
shall
list
the
total
number
of
15
homestead
adjustment
credits
in
the
county
and
the
total
amount
16
of
all
such
credits,
listed
by
taxing
district
in
the
county.
17
The
county
treasurer
shall
certify
to
the
department
of
revenue
18
the
total
amount
of
dollars,
listed
by
taxing
district
in
the
19
county,
due
for
homestead
adjustment
credits
claimed.
20
Sec.
5.
NEW
SECTION
.
425B.5
Credit
amount
——
income
21
limitations.
22
1.
If
the
income
qualification
specified
in
subsection
23
2
is
met
and
the
homestead’s
actual
value
for
the
assessment
24
year
for
which
the
credit
is
claimed
is
less
than
two
hundred
25
fifty
thousand
dollars,
the
amount
of
the
claimant’s
homestead
26
adjustment
credit
shall
be
an
amount
equal
to
the
amount
of
27
property
taxes
levied
against
the
homestead
for
the
base
28
assessment
year
following
application
of
all
applicable
29
property
tax
credits
other
than
the
homestead
adjustment
credit
30
minus
the
amount
of
property
taxes
levied
against
the
homestead
31
for
the
assessment
year
preceding
the
base
assessment
year
32
following
application
of
all
property
tax
credits.
33
2.
A
claimant
is
eligible
for
a
homestead
adjustment
34
credit
against
taxes
levied
on
the
claimant’s
homestead
if
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the
claimant’s
household
income
is
less
than
thirty
thousand
1
dollars
in
the
base
year.
2
Sec.
6.
NEW
SECTION
.
425B.6
Administration.
3
1.
The
director
of
revenue
shall
make
available
suitable
4
forms
for
claiming
a
homestead
adjustment
credit
with
5
instructions
for
claimants.
Each
assessor
and
county
treasurer
6
shall
make
available
the
forms
and
instructions.
The
claim
7
shall
be
in
a
form
as
the
director
may
prescribe.
8
2.
The
homestead
adjustment
credit
fund
is
created
within
9
the
state
treasury
under
the
control
of
the
department
of
10
revenue.
There
is
appropriated
annually
from
the
general
11
fund
of
the
state
to
the
department
of
revenue
for
deposit
12
in
the
homestead
adjustment
credit
fund
an
amount
sufficient
13
to
provide
all
credits
authorized
under
this
chapter.
The
14
director
of
the
department
of
administrative
services
shall
15
issue
warrants
on
the
homestead
adjustment
credit
fund
payable
16
to
the
county
treasurers
of
the
several
counties
of
the
state
17
under
this
chapter.
The
amount
due
each
county
shall
be
paid
18
in
two
payments
on
November
15
and
March
15
of
each
fiscal
19
year,
drawn
upon
warrants
payable
to
the
respective
county
20
treasurers.
The
two
payments
shall
be
as
nearly
equal
as
21
possible.
22
3.
Annually,
the
department
of
revenue
shall
certify
to
23
the
county
auditor
of
each
county
the
credit
and
its
amount
24
in
dollars.
Each
county
auditor
shall
then
enter
the
credit
25
against
the
tax
levied
on
each
eligible
homestead
in
each
26
county
payable
during
the
ensuing
year,
designating
on
the
27
tax
lists
the
credit
as
being
from
the
homestead
adjustment
28
credit
fund,
and
credit
shall
then
be
given
to
the
several
29
taxing
districts
in
which
eligible
homesteads
are
located
in
30
an
amount
equal
to
the
credits
allowed
on
the
taxes
of
the
31
homesteads.
The
amount
of
credits
shall
be
apportioned
by
each
32
county
treasurer
to
the
several
taxing
districts
as
provided
33
by
law,
in
the
same
manner
as
though
the
amount
of
the
credit
34
had
been
paid
by
the
owners
of
the
homesteads.
However,
the
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several
taxing
districts
shall
not
draw
the
funds
so
credited
1
until
after
the
semiannual
allocations
have
been
received
by
2
the
county
treasurer,
as
provided
in
this
chapter.
Each
county
3
treasurer
shall
show
on
each
tax
receipt
the
amount
of
credit
4
received
from
the
homestead
adjustment
credit
fund.
5
Sec.
7.
NEW
SECTION
.
425B.7
Proof
of
claim.
6
1.
Every
claimant
shall
give
the
department
of
revenue,
in
7
support
of
the
claim,
reasonable
proof
of:
8
a.
Age
and
total
disability,
if
any.
9
b.
Changes
of
homestead.
10
c.
Size
and
nature
of
the
property
claimed
as
the
homestead.
11
d.
Household
income.
12
2.
The
director
of
revenue
may
require
any
additional
proof
13
necessary
to
support
a
claim.
14
Sec.
8.
NEW
SECTION
.
425B.8
Audit
——
denial.
15
If
on
the
audit
of
a
claim
for
a
homestead
adjustment
credit
16
under
this
chapter,
the
director
of
revenue
determines
the
17
claim
is
not
allowable,
the
director
shall
notify
the
claimant
18
of
the
denial
and
the
reasons
for
it.
The
director
shall
19
not
deny
a
claim
after
three
years
from
October
31
of
the
20
year
in
which
the
claim
was
filed.
The
director
shall
give
21
notification
to
the
county
assessor
of
the
denial
of
the
claim
22
and
the
county
assessor
shall
instruct
the
county
treasurer
to
23
proceed
to
collect
the
tax
that
would
have
been
levied
on
the
24
applicable
adjusted
assessed
value
in
the
same
manner
as
other
25
property
taxes
due
and
payable
are
collected,
if
the
property
26
on
which
the
credit
was
granted
is
still
owned
by
the
claimant.
27
However,
if
the
claim
was
incorrectly
allowed
due
to
a
clerical
28
error,
error
by
a
person
other
than
the
claimant,
or
an
29
innocent
misrepresentation
by
or
on
behalf
of
the
claimant,
the
30
proceedings
to
collect
the
tax
shall
be
limited
to
the
taxes
31
due
and
payable
in
the
twelve
months
immediately
preceding
the
32
disallowance.
33
Sec.
9.
NEW
SECTION
.
425B.9
Waiver
of
confidentiality.
34
1.
A
claimant
shall
expressly
waive
any
right
to
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confidentiality
relating
to
all
income
tax
information
1
obtainable
through
the
department
of
revenue
including
all
2
information
covered
by
sections
422.20
and
422.72.
This
waiver
3
shall
apply
to
information
available
to
the
county
assessor
who
4
shall
hold
the
information
confidential
except
that
it
may
be
5
used
as
evidence
to
disallow
the
homestead
adjustment
credit.
6
2.
The
department
of
revenue
may
release
information
7
pertaining
to
a
person’s
eligibility
or
claim
for
or
receipt
8
of
the
credit
to
an
employee
of
the
department
of
inspections
9
and
appeals
in
the
employee’s
official
conduct
of
an
audit
or
10
investigation.
11
Sec.
10.
NEW
SECTION
.
425B.10
False
claim
——
penalty.
12
A
person
who
makes
a
false
affidavit
for
the
purpose
of
13
obtaining
a
homestead
adjustment
credit
provided
for
in
this
14
chapter
or
who
knowingly
receives
the
credit
without
being
15
legally
entitled
to
it
or
makes
claim
for
the
credit
in
more
16
than
one
county
in
the
state
without
being
legally
entitled
17
to
it
is
guilty
of
a
fraudulent
practice.
The
claim
for
18
credit
shall
be
disallowed
in
full
and
if
the
claim
has
been
19
paid,
the
amount
shall
be
recovered
in
the
manner
provided
in
20
section
425B.8.
The
director
of
revenue
shall
send
a
notice
21
of
disallowance
of
the
claim.
22
Sec.
11.
NEW
SECTION
.
425B.11
Notices,
appeals,
and
23
rules.
24
To
the
extent
not
otherwise
contrary
to
the
provisions
of
25
this
chapter:
26
1.
Section
423.39,
subsection
1,
shall
apply
to
all
notices
27
under
this
chapter.
28
2.
Any
person
aggrieved
by
an
act
or
decision
of
the
29
director
of
revenue
or
the
department
of
revenue
under
this
30
chapter
shall
have
the
same
rights
of
appeal
and
review
as
31
provided
in
section
423.38
and
the
rules
of
the
department
of
32
revenue.
33
3.
A
claim
for
credit
shall
be
disallowed
if
the
department
34
finds
that
the
claimant
or
a
person
of
the
claimant’s
household
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received
title
to
the
homestead
primarily
for
the
purpose
of
1
receiving
benefits
under
this
chapter.
2
4.
The
department
of
revenue
shall
adopt
rules
pursuant
to
3
chapter
17A
to
administer
and
interpret
this
chapter,
including
4
rules
to
prevent
and
disallow
duplication
of
benefits
and
to
5
prevent
any
unreasonable
hardship
or
advantage
to
any
person.
6
Sec.
12.
IMPLEMENTATION.
Section
25B.7
shall
not
apply
to
7
this
Act.
8
Sec.
13.
APPLICABILITY.
This
Act
applies
retroactively
to
9
January
1,
2021,
for
assessment
years
beginning
on
or
after
10
that
date
and
to
the
filing
of
claims
for
homestead
adjustment
11
credits
on
or
after
January
1,
2022.
12
EXPLANATION
13
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
14
the
explanation’s
substance
by
the
members
of
the
general
assembly.
15
This
bill
establishes
a
homestead
adjustment
credit
for
an
16
owner
of
a
homestead
with
an
actual
value
of
less
than
$250,000
17
if
the
owner
is
a
person
who
is
either
65
or
older
or
totally
18
disabled,
and
who
has
household
income
of
less
than
$30,000
19
per
year.
If
the
qualifications
established
in
the
bill
are
20
met,
the
amount
of
the
homestead
adjustment
credit
shall
be
an
21
amount
equal
to
the
amount
of
property
taxes
levied
against
the
22
homestead
for
the
base
assessment
year,
as
defined
in
the
bill,
23
following
application
of
all
applicable
property
tax
credits
24
other
than
the
homestead
adjustment
credit
minus
the
amount
of
25
property
taxes
levied
against
the
homestead
for
the
assessment
26
year
preceding
the
base
assessment
year
following
application
27
of
all
property
tax
credits.
Only
one
claimant
per
household
28
per
fiscal
year
may
receive
the
credit
under
the
bill.
29
The
bill
annually
appropriates
from
the
general
fund
of
the
30
state
to
the
department
of
revenue
for
deposit
in
the
homestead
31
adjustment
credit
fund,
created
in
the
bill,
an
amount
32
sufficient
to
fund
all
of
the
homestead
adjustment
credits
for
33
the
fiscal
year.
34
The
bill
provides
that
a
person
who
makes
a
false
affidavit
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for
the
purpose
of
obtaining
a
credit,
knowingly
receives
a
1
credit
without
being
legally
entitled
to
it,
or
makes
claim
for
2
a
credit
in
more
than
one
county
without
being
legally
entitled
3
to
it
is
guilty
of
a
fraudulent
practice
and
is
subject
to
a
4
criminal
penalty.
5
The
bill
provides
that
the
provisions
in
Code
section
6
25B.7,
relating
to
the
obligation
of
the
state
to
reimburse
7
local
jurisdictions
for
newly
enacted
property
tax
credits
and
8
exemptions,
do
not
apply
to
the
bill.
9
The
bill
applies
retroactively
to
January
1,
2021,
for
10
assessment
years
beginning
on
or
after
that
date
and
applies
to
11
claims
filed
on
or
after
January
1,
2022,
for
the
credit.
12
-7-
LSB
1043XS
(1)
89
md/jh
7/
7