Bill Text: IA SF83 | 2015-2016 | 86th 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 seventy, applying income limitations, providing a penalty, and including retroactive and other applicability provisions.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2015-04-07 - Fiscal note. SCS. [SF83 Detail]
Download: Iowa-2015-SF83-Introduced.html
Senate File 83 - Introduced SENATE FILE BY BISIGNANO 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 seventy, 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 1756XS (1) 86 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 seventy 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. "Earned income" means the same as defined in section 32 1 25 of the Internal Revenue Code. 1 26 6. "Homestead" means the dwelling owned and actually used 1 27 as a home by the claimant during at least six months of the 1 28 base year and each of the nine years immediately preceding the 1 29 base year, and so much of the land surrounding it, including 1 30 one or more contiguous lots or tracts of land, as is reasonably 1 31 necessary for use of the dwelling as a home, and may consist 1 32 of a part of a multidwelling or multipurpose building and a 1 33 part of the land upon which it is built. It does not include 1 34 personal property except that a manufactured or mobile home 1 35 may be a homestead. Any dwelling or a part of a multidwelling 2 1 or multipurpose building which is exempt from taxation does 2 2 not qualify as a homestead under this chapter. A homestead 2 3 must be located in this state. When a person is confined in a 2 4 nursing home, extended=care facility, or hospital, the person 2 5 shall be considered as occupying or living in the person's 2 6 homestead if the person is the owner of the homestead and the 2 7 person maintains the homestead and does not lease, rent, or 2 8 otherwise receive profits from other persons for the use of the 2 9 homestead. 2 10 7. "Owned" means owned by an owner as defined in section 2 11 425.11. 2 12 Sec. 3. NEW SECTION. 425B.3 Right to file a claim. 2 13 The right to file a claim for an assessed value adjustment 2 14 under this chapter may be exercised by the claimant or on 2 15 behalf of a claimant by the claimant's legal guardian, spouse, 2 16 or attorney, or by the executor or administrator of the 2 17 claimant's estate. If a claimant dies after having filed a 2 18 claim for adjustment, the amount of any adjustment shall be 2 19 made as if the claimant had not died. 2 20 Sec. 4. NEW SECTION. 425B.4 Claim for adjustment. 2 21 1. Subject to the limitations provided in this chapter, 2 22 a claimant may annually claim an adjustment of the assessed 2 23 value of the claimant's homestead for the base assessment year. 2 24 The adjustment claim shall be filed with the county assessor 2 25 between January 1 and February 15 immediately following 2 26 the close of the base assessment year. However, in case of 2 27 sickness, absence, or other disability of the claimant, or 2 28 if in the judgment of the county assessor good cause exists, 2 29 the county assessor may extend the time for filing a claim for 2 30 adjustment through June 30 of the same calendar year. 2 31 2. The county assessor shall notify the department of 2 32 revenue by March 1 of the number of claimants receiving 2 33 adjustments under this chapter and the total amount of the 2 34 reduced assessed values for the base assessment year. 2 35 Sec. 5. NEW SECTION. 425B.5 Adjustment ==== maximum tax 3 1 dollars levied. 3 2 1. If the earned income qualification specified in 3 3 subsection 2 is met, the assessed value of the claimant's 3 4 homestead in the base assessment year shall be adjusted, but 3 5 not increased, to equal the assessed value, as such assessed 3 6 value may have been adjusted pursuant to this chapter, in 3 7 the assessment year preceding the base assessment year. If 3 8 the amount of property taxes levied against the adjusted 3 9 assessment exceeds the amount of property taxes levied against 3 10 the property in the fiscal year for which taxes were first 3 11 levied against an adjusted assessment under this chapter, the 3 12 treasurer shall subtract the difference from the amount due. 3 13 2. A claimant is eligible for an adjustment to the assessed 3 14 value of the claimant's homestead if the claimant's household 3 15 earned income is less than twelve thousand dollars in the base 3 16 year. 3 17 Sec. 6. NEW SECTION. 425B.6 Administration. 3 18 The director of revenue shall make available suitable forms 3 19 for claiming an assessed value adjustment with instructions 3 20 for claimants. Each assessor and county treasurer shall make 3 21 available the forms and instructions. The claim shall be in a 3 22 form as the director may prescribe. 3 23 Sec. 7. NEW SECTION. 425B.7 Proof of claim. 3 24 1. Every claimant shall give the department of revenue, in 3 25 support of the claim, reasonable proof of: 3 26 a. Age. 3 27 b. Changes of homestead. 3 28 c. Size and nature of the property claimed as the homestead. 3 29 d. Household earned income. 3 30 2. The director of revenue may require any additional proof 3 31 necessary to support a claim. 3 32 Sec. 8. NEW SECTION. 425B.8 Audit ==== denial. 3 33 If on the audit of a claim for adjustment under this 3 34 chapter, the director of revenue determines the claim is not 3 35 allowable, the director shall notify the claimant of the denial 4 1 and the reasons for it. The director shall not deny a claim 4 2 after three years from October 31 of the year in which the 4 3 claim was filed. The director shall give notification to the 4 4 county assessor of the denial of the claim and the county 4 5 assessor shall instruct the county treasurer to proceed to 4 6 collect the tax that would have been levied on the applicable 4 7 adjusted assessed value in the same manner as other property 4 8 taxes due and payable are collected, if the property on which 4 9 the adjustment was granted is still owned by the claimant. 4 10 However, if the claim was incorrectly allowed due to a clerical 4 11 error, error by a person other than the claimant, or an 4 12 innocent misrepresentation by or on behalf of the claimant, the 4 13 proceedings to collect the tax shall be limited to the taxes 4 14 due and payable in the twelve months immediately preceding the 4 15 disallowance. 4 16 Sec. 9. NEW SECTION. 425B.9 Waiver of confidentiality. 4 17 1. A claimant shall expressly waive any right to 4 18 confidentiality relating to all income tax information 4 19 obtainable through the department of revenue including all 4 20 information covered by sections 422.20 and 422.72. This waiver 4 21 shall apply to information available to the county assessor who 4 22 shall hold the information confidential except that it may be 4 23 used as evidence to disallow the assessed value adjustment. 4 24 2. The department of revenue may release information 4 25 pertaining to a person's eligibility or claim for or receipt of 4 26 the assessed value adjustment to an employee of the department 4 27 of inspections and appeals in the employee's official conduct 4 28 of an audit or investigation. 4 29 Sec. 10. NEW SECTION. 425B.10 False claim ==== penalty. 4 30 A person who makes a false affidavit for the purpose of 4 31 obtaining an adjustment in assessed value provided for in 4 32 this chapter or who knowingly receives the adjustment without 4 33 being legally entitled to it or makes claim for the adjustment 4 34 in more than one county in the state without being legally 4 35 entitled to it is guilty of a fraudulent practice. The claim 5 1 for adjustment shall be disallowed in full and property tax 5 2 shall be levied on the disallowed adjustment at the rate that 5 3 would have been levied but for the adjustment. The director of 5 4 revenue shall send a notice of disallowance of the claim. 5 5 Sec. 11. NEW SECTION. 425B.11 Notices. 5 6 Section 423.39, subsection 1, shall apply to all notices 5 7 under this chapter. 5 8 Sec. 12. NEW SECTION. 425B.12 Appeals. 5 9 Any person aggrieved by an act or decision of the director 5 10 of revenue or the department of revenue under this chapter 5 11 shall have the same rights of appeal and review as provided in 5 12 sections 421.1 and 423.38 and the rules of the department of 5 13 revenue. 5 14 Sec. 13. NEW SECTION. 425B.13 Disallowance of certain 5 15 claims. 5 16 A claim for adjustment shall be disallowed if the department 5 17 finds that the claimant or a person of the claimant's household 5 18 received title to the homestead primarily for the purpose of 5 19 receiving benefits under this chapter. 5 20 Sec. 14. NEW SECTION. 425B.14 Rules. 5 21 The director of revenue shall adopt rules in accordance with 5 22 chapter 17A for the interpretation and administration of this 5 23 chapter, including rules to prevent and disallow duplication of 5 24 benefits and to prevent any unreasonable hardship or advantage 5 25 to any person. 5 26 Sec. 15. APPLICABILITY. This Act applies retroactively to 5 27 January 1, 2015, for assessment years beginning on or after 5 28 that date and to the filing of claims on or after January 1, 5 29 2016, for adjustments of assessed values. 5 30 EXPLANATION 5 31 The inclusion of this explanation does not constitute agreement with 5 32 the explanation's substance by the members of the general assembly. 5 33 This bill provides for an adjustment in the assessed value 5 34 of a homestead, as defined in the bill, if the owner has owned 5 35 the homestead for at least 10 years and is a person who is 70 or 6 1 older and who has household earned income of less than $12,000 6 2 per year. If the qualifications established in the bill are 6 3 met, the assessed value of the homestead upon which property 6 4 taxes are levied in a fiscal year is the same assessed value as 6 5 for the previous fiscal year. The bill specifies that assessed 6 6 value is that value prior to any rollback being applied. 6 7 The bill further provides that if the amount of property 6 8 taxes levied against the adjusted assessment exceeds the amount 6 9 of property taxes levied against the property in the fiscal 6 10 year for which taxes were first levied against an adjusted 6 11 assessment under the bill, the county treasurer is required to 6 12 subtract such difference from the amount due. 6 13 The bill provides that a person who makes a false affidavit 6 14 for the purpose of obtaining an adjustment, knowingly receives 6 15 the adjustment without being legally entitled to it, or makes 6 16 claim for the adjustment in more than one county without being 6 17 legally entitled to it is guilty of a fraudulent practice and 6 18 is subject to a criminal penalty. 6 19 The bill applies retroactively to January 1, 2015, for 6 20 assessment years beginning on or after that date and applies to 6 21 claims filed on or after January 1, 2016, for the adjustments. LSB 1756XS (1) 86 md/sc
