Bill Text: IA SF2266 | 2017-2018 | 87th 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) 2018-02-13 - Subcommittee: Feenstra, McCoy, and Schultz. S.J. 308. [SF2266 Detail]
Download: Iowa-2017-SF2266-Introduced.html
Senate File 2266 - Introduced SENATE FILE BY CARLIN A BILL FOR 1 An Act establishing a homestead adjustment property tax credit 2 for certain property of persons who have attained the age 3 of sixty=five or who are totally disabled, applying income 4 limitations, providing a penalty, making appropriations, and 5 including retroactive and other applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5832XS (6) 87 md/jh PAG LIN 1 1 Section 1. NEW SECTION. 425B.1 Homestead adjustment credit 1 2 ==== purpose. 1 3 Persons who own their homesteads and who meet the 1 4 qualifications provided in this chapter are eligible for a 1 5 homestead adjustment credit, as provided in this chapter, to 1 6 prevent an increase in the amount of property taxes owed. 1 7 Sec. 2. NEW SECTION. 425B.2 Definitions. 1 8 As used in this chapter, unless the context otherwise 1 9 requires: 1 10 1. "Base assessment year" means the assessment year 1 11 beginning in the base year. 1 12 2. "Base year" means the calendar year last ending before 1 13 the claim is filed. 1 14 3. "Claimant" means a person filing a claim for a credit 1 15 under this chapter who has either attained the age of 1 16 sixty=five years on or before December 31 of the base year or 1 17 is totally disabled as defined in section 425.17, and who is 1 18 domiciled in this state at the time the claim is filed or at the 1 19 time of the person's death in the case of a claim filed by the 1 20 executor or administrator of the claimant's estate. 1 21 4. "Homestead" means the same as defined in section 425.11. 1 22 5. "Household", "household income", and "income" mean the 1 23 same as defined in section 425.17. 1 24 6. "Owned" means owned by an owner as defined in section 1 25 425.11. 1 26 Sec. 3. NEW SECTION. 425B.3 Right to file a claim. 1 27 The right to file a claim for a homestead adjustment 1 28 credit under this chapter may be exercised by the claimant 1 29 or on behalf of a claimant by the claimant's legal guardian, 1 30 spouse, or attorney, or by the executor or administrator of the 1 31 claimant's estate. If a claimant dies after having filed a 1 32 claim for a credit, the amount of the credit shall be made as if 1 33 the claimant had not died. Only one claimant per household per 1 34 fiscal year shall be entitled to a credit under this chapter. 1 35 Sec. 4. NEW SECTION. 425B.4 Claim for credit. 2 1 1. Subject to the limitations provided in this chapter, a 2 2 claimant may annually claim a homestead adjustment credit for 2 3 the claimant's homestead for the base assessment year. The 2 4 claim shall be filed with the county assessor for approval 2 5 between January 1 and February 15 immediately following 2 6 the close of the base assessment year. However, in case of 2 7 sickness, absence, or other disability of the claimant, or if 2 8 in the judgment of the county assessor good cause exists, the 2 9 county assessor may extend the time for filing a claim through 2 10 June 30 of the same calendar year. 2 11 2. The assessor shall remit the list of approved eligible 2 12 claims to the county auditor by July 6 of each year. All 2 13 eligible claims for credit shall be certified on or before 2 14 August 1, in each year, by the county auditor to the county 2 15 treasurer, which certificates shall list the total number of 2 16 homestead adjustment credits in the county and the total amount 2 17 of all such credits, listed by taxing district in the county. 2 18 The county treasurer shall certify to the department of revenue 2 19 the total amount of dollars, listed by taxing district in the 2 20 county, due for homestead adjustment credits claimed. 2 21 Sec. 5. NEW SECTION. 425B.5 Credit amount == income 2 22 limitations. 2 23 1. If the income qualification specified in subsection 2 is 2 24 met, the amount of the claimant's homestead adjustment credit 2 25 shall be an amount equal to the amount of property taxes levied 2 26 against the homestead for the base assessment year following 2 27 application of all applicable property tax credits other than 2 28 the homestead adjustment credit minus the amount of property 2 29 taxes levied against the homestead for the assessment year 2 30 preceding the base assessment year following application of all 2 31 property tax credits. 2 32 2. A claimant is eligible for a homestead adjustment 2 33 credit against taxes levied on the claimant's homestead if 2 34 the claimant's household income is less than thirty thousand 2 35 dollars in the base year. 3 1 Sec. 6. NEW SECTION. 425B.6 Administration. 3 2 1. The director of revenue shall make available suitable 3 3 forms for claiming a homestead adjustment credit with 3 4 instructions for claimants. Each assessor and county treasurer 3 5 shall make available the forms and instructions. The claim 3 6 shall be in a form as the director may prescribe. 3 7 2. The homestead adjustment credit fund is created within 3 8 the state treasury under the control of the department of 3 9 revenue. There is appropriated annually from the general 3 10 fund of the state to the department of revenue for deposit 3 11 in the homestead adjustment credit fund an amount sufficient 3 12 to provide all credits authorized under this chapter. The 3 13 director of the department of administrative services shall 3 14 issue warrants on the homestead adjustment credit fund payable 3 15 to the county treasurers of the several counties of the state 3 16 under this chapter. The amount due each county shall be paid 3 17 in two payments on November 15 and March 15 of each fiscal 3 18 year, drawn upon warrants payable to the respective county 3 19 treasurers. The two payments shall be as nearly equal as 3 20 possible. 3 21 3. Annually, the department of revenue shall certify to 3 22 the county auditor of each county the credit and its amount 3 23 in dollars. Each county auditor shall then enter the credit 3 24 against the tax levied on each eligible homestead in each 3 25 county payable during the ensuing year, designating on the 3 26 tax lists the credit as being from the homestead adjustment 3 27 credit fund, and credit shall then be given to the several 3 28 taxing districts in which eligible homesteads are located in 3 29 an amount equal to the credits allowed on the taxes of the 3 30 homesteads. The amount of credits shall be apportioned by each 3 31 county treasurer to the several taxing districts as provided 3 32 by law, in the same manner as though the amount of the credit 3 33 had been paid by the owners of the homesteads. However, the 3 34 several taxing districts shall not draw the funds so credited 3 35 until after the semiannual allocations have been received by 4 1 the county treasurer, as provided in this chapter. Each county 4 2 treasurer shall show on each tax receipt the amount of credit 4 3 received from the homestead adjustment credit fund. 4 4 Sec. 7. NEW SECTION. 425B.7 Proof of claim. 4 5 1. Every claimant shall give the department of revenue, in 4 6 support of the claim, reasonable proof of: 4 7 a. Age and total disability, if any. 4 8 b. Changes of homestead. 4 9 c. Size and nature of the property claimed as the homestead. 4 10 d. Household income. 4 11 2. The director of revenue may require any additional proof 4 12 necessary to support a claim. 4 13 Sec. 8. NEW SECTION. 425B.8 Audit ==== denial. 4 14 If on the audit of a claim for a homestead adjustment credit 4 15 under this chapter, the director of revenue determines the 4 16 claim is not allowable, the director shall notify the claimant 4 17 of the denial and the reasons for it. The director shall 4 18 not deny a claim after three years from October 31 of the 4 19 year in which the claim was filed. The director shall give 4 20 notification to the county assessor of the denial of the claim 4 21 and the county assessor shall instruct the county treasurer to 4 22 proceed to collect the tax that would have been levied on the 4 23 applicable adjusted assessed value in the same manner as other 4 24 property taxes due and payable are collected, if the property 4 25 on which the credit was granted is still owned by the claimant. 4 26 However, if the claim was incorrectly allowed due to a clerical 4 27 error, error by a person other than the claimant, or an 4 28 innocent misrepresentation by or on behalf of the claimant, the 4 29 proceedings to collect the tax shall be limited to the taxes 4 30 due and payable in the twelve months immediately preceding the 4 31 disallowance. 4 32 Sec. 9. NEW SECTION. 425B.9 Waiver of confidentiality. 4 33 1. A claimant shall expressly waive any right to 4 34 confidentiality relating to all income tax information 4 35 obtainable through the department of revenue including all 5 1 information covered by sections 422.20 and 422.72. This waiver 5 2 shall apply to information available to the county assessor who 5 3 shall hold the information confidential except that it may be 5 4 used as evidence to disallow the homestead adjustment credit. 5 5 2. The department of revenue may release information 5 6 pertaining to a person's eligibility or claim for or receipt 5 7 of the credit to an employee of the department of inspections 5 8 and appeals in the employee's official conduct of an audit or 5 9 investigation. 5 10 Sec. 10. NEW SECTION. 425B.10 False claim ==== penalty. 5 11 A person who makes a false affidavit for the purpose of 5 12 obtaining a homestead adjustment credit provided for in this 5 13 chapter or who knowingly receives the credit without being 5 14 legally entitled to it or makes claim for the credit in more 5 15 than one county in the state without being legally entitled 5 16 to it is guilty of a fraudulent practice. The claim for 5 17 credit shall be disallowed in full and if the claim has been 5 18 paid, the amount shall be recovered in the manner provided in 5 19 section 425B.8. The director of revenue shall send a notice 5 20 of disallowance of the claim. 5 21 Sec. 11. NEW SECTION. 425B.11 Notices, appeals, and 5 22 rules. 5 23 To the extent not otherwise contrary to the provisions of 5 24 this chapter: 5 25 1. Section 423.39, subsection 1, shall apply to all notices 5 26 under this chapter. 5 27 2. Any person aggrieved by an act or decision of the 5 28 director of revenue or the department of revenue under this 5 29 chapter shall have the same rights of appeal and review as 5 30 provided in section 423.38 and the rules of the department of 5 31 revenue. 5 32 3. A claim for credit shall be disallowed if the department 5 33 finds that the claimant or a person of the claimant's household 5 34 received title to the homestead primarily for the purpose of 5 35 receiving benefits under this chapter. 6 1 4. The department of revenue shall adopt rules pursuant to 6 2 chapter 17A to administer and interpret this chapter, including 6 3 rules to prevent and disallow duplication of benefits and to 6 4 prevent any unreasonable hardship or advantage to any person. 6 5 Sec. 12. APPLICABILITY. This Act applies retroactively to 6 6 January 1, 2018, for assessment years beginning on or after 6 7 that date and to the filing of claims for homestead adjustment 6 8 credits on or after January 1, 2019. 6 9 EXPLANATION 6 10 The inclusion of this explanation does not constitute agreement with 6 11 the explanation's substance by the members of the general assembly. 6 12 This bill establishes a homestead adjustment credit for an 6 13 owner of a homestead if the owner is a person who is either 65 6 14 or older or totally disabled, and who has household income of 6 15 less than $30,000 per year. If the qualifications established 6 16 in the bill are met, the amount of the homestead adjustment 6 17 credit shall be an amount equal to the amount of property taxes 6 18 levied against the homestead for the base assessment year, as 6 19 defined in the bill, following application of all applicable 6 20 property tax credits other than the homestead adjustment credit 6 21 minus the amount of property taxes levied against the homestead 6 22 for the assessment year preceding the base assessment year 6 23 following application of all property tax credits. Only one 6 24 claimant per household per fiscal year may receive the credit 6 25 under the bill. 6 26 The bill annually appropriates from the general fund of the 6 27 state to the department of revenue for deposit in the homestead 6 28 adjustment credit fund, created in the bill, an amount 6 29 sufficient to fund all of the homestead adjustment credits for 6 30 the fiscal year. 6 31 The bill provides that a person who makes a false affidavit 6 32 for the purpose of obtaining a credit, knowingly receives a 6 33 credit without being legally entitled to it, or makes claim for 6 34 a credit in more than one county without being legally entitled 6 35 to it is guilty of a fraudulent practice and is subject to a 7 1 criminal penalty. 7 2 The bill applies retroactively to January 1, 2018, for 7 3 assessment years beginning on or after that date and applies to 7 4 claims filed on or after January 1, 2019, for the credit. LSB 5832XS (6) 87 md/jh
