Bill Text: IA SSB1123 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to the administration of the reimbursement for rent constituting property taxes paid and related matters and including effective date provisions.

Spectrum: Committee Bill

Status: (Introduced) 2021-02-16 - Subcommittee: Carlin, Bolkcom, and Green. [SSB1123 Detail]

Download: Iowa-2021-SSB1123-Introduced.html
Senate Study Bill 1123 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF REVENUE BILL) A BILL FOR An Act relating to the administration of the reimbursement for 1 rent constituting property taxes paid and related matters 2 and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1402XD (3) 89 md/jh
S.F. _____ H.F. _____ Section 1. Section 331.559, subsection 12, Code 2021, is 1 amended to read as follows: 2 12. Carry out duties relating to the administration of the 3 homestead tax credit and other credits as provided in sections 4 425.4 , 425.5 , 425.7 , 425.9 , 425.10 , and 425.25 . 5 Sec. 2. Section 425.1, subsections 1, 4, and 6, Code 2021, 6 are amended to read as follows: 7 1. a. A homestead credit fund is created. There is 8 appropriated annually from the general fund of the state to 9 the department of revenue to be credited to the homestead 10 credit fund, an amount sufficient to implement this chapter 11 subchapter . 12 b. The director of the department of administrative services 13 shall issue warrants on the homestead credit fund payable to 14 the county treasurers of the several counties of the state 15 under this chapter subchapter . 16 4. Annually the department of revenue shall certify to 17 the county auditor of each county the credit and its amount 18 in dollars. Each county auditor shall then enter the credit 19 against the tax levied on each eligible homestead in each 20 county payable during the ensuing year, designating on the tax 21 lists the credit as being from the homestead credit fund, and 22 credit shall then be given to the several taxing districts in 23 which eligible homesteads are located in an amount equal to the 24 credits allowed on the taxes of the homesteads. The amount of 25 credits shall be apportioned by each county treasurer to the 26 several taxing districts as provided by law, in the same manner 27 as though the amount of the credit had been paid by the owners 28 of the homesteads. However, the several taxing districts shall 29 not draw the funds so credited until after the semiannual 30 allocations have been received by the county treasurer, as 31 provided in this chapter subchapter . Each county treasurer 32 shall show on each tax receipt the amount of credit received 33 from the homestead credit fund. 34 6. The homestead tax credit allowed in this chapter 35 -1- LSB 1402XD (3) 89 md/jh 1/ 21
S.F. _____ H.F. _____ subchapter shall not exceed the actual amount of taxes payable 1 on the eligible homestead, exclusive of any special assessments 2 levied against the homestead. 3 Sec. 3. Section 425.2, subsections 1 and 3, Code 2021, are 4 amended to read as follows: 5 1. A person who wishes to qualify for the homestead 6 credit allowed under this chapter subchapter shall obtain the 7 appropriate forms for filing for the credit from the assessor. 8 The person claiming the credit shall file a verified statement 9 and designation of homestead with the assessor for the year for 10 which the person is first claiming the credit. The claim shall 11 be filed not later than July 1 of the year for which the person 12 is claiming the credit. A claim filed after July 1 of the year 13 for which the person is claiming the credit shall be considered 14 as a claim filed for the following year. 15 3. In case the owner of the homestead is in active service 16 in the armed forces of this state or of the United States, or is 17 sixty-five years of age or older, or is disabled, the statement 18 and designation may be signed and delivered by any member of 19 the owner’s family, by the owner’s guardian or conservator, or 20 by any other person who may represent the owner under power 21 of attorney. If the owner of the homestead is married, the 22 spouse may sign and deliver the statement and designation. The 23 director of human services or the director’s designee may make 24 application for the benefits of this chapter subchapter as the 25 agent for and on behalf of persons receiving assistance under 26 chapter 249 . 27 Sec. 4. Section 425.6, Code 2021, is amended to read as 28 follows: 29 425.6 Waiver by neglect. 30 If a person fails to file a claim or to have a claim on file 31 with the assessor for the credits provided in this chapter 32 subchapter , the person is deemed to have waived the homestead 33 credit for the year in which the person failed to file the 34 claim or to have a claim on file with the assessor. 35 -2- LSB 1402XD (3) 89 md/jh 2/ 21
S.F. _____ H.F. _____ Sec. 5. Section 425.7, subsections 1 and 2, Code 2021, are 1 amended to read as follows: 2 1. Any person whose claim is denied under the provisions of 3 this chapter subchapter may appeal from the action of the board 4 of supervisors to the district court of the county in which 5 said claimed homestead is situated by giving written notice of 6 such appeal to the county auditor of said county within twenty 7 days from the date of mailing of notice of such action by the 8 board of supervisors. 9 2. In the event any claim under this chapter subchapter is 10 allowed, any owner of an eligible homestead may appeal from the 11 action of the board of supervisors to the district court of the 12 county in which said claimed homestead is situated, by giving 13 written notice of such appeal to the county auditor of said 14 county and such notice to the owner of said claimed homestead 15 as a judge of the district court shall direct. 16 Sec. 6. Section 425.8, Code 2021, is amended to read as 17 follows: 18 425.8 Forms —— rules. 19 1. The director of revenue shall prescribe the form 20 for the making of a verified statement and designation of 21 homestead, the form for the supporting affidavits required 22 herein, and such other forms as may be necessary for the proper 23 administration of this chapter subchapter . Whenever necessary, 24 the department of revenue shall forward to the county auditors 25 of the several counties in the state the prescribed sample 26 forms, and the county auditors shall furnish blank forms 27 prepared in accordance therewith with the assessment rolls, 28 books, and supplies delivered to the assessors. The department 29 of revenue shall prescribe and the county auditors shall 30 provide on the forms for claiming the homestead credit a 31 statement to the effect that the owner realizes that the owner 32 must give written notice to the assessor when the owner changes 33 the use of the property. 34 2. The director of revenue may prescribe rules, not 35 -3- LSB 1402XD (3) 89 md/jh 3/ 21
S.F. _____ H.F. _____ inconsistent with the provisions of this chapter subchapter , 1 necessary to carry out and effectuate its purposes. 2 Sec. 7. Section 425.9, subsection 1, Code 2021, is amended 3 to read as follows: 4 1. If the amount of credit apportioned to any homestead 5 under the provisions of this chapter subchapter in any 6 year shall exceed the total tax, exclusive of any special 7 assessments levied against said homestead, then such excess 8 shall be remitted by the county treasurer to the department of 9 revenue to be redeposited in the homestead credit fund and be 10 reallocated the following year by the department as provided in 11 this chapter subchapter . 12 Sec. 8. Section 425.10, Code 2021, is amended to read as 13 follows: 14 425.10 Reversal of allowed claim. 15 In the event any claim is allowed, and subsequently reversed 16 on appeal, any credit made thereunder shall be void, and the 17 amount of such credit shall be charged against the property in 18 question, and the director of revenue, the county auditor, and 19 the county treasurer are authorized and directed to correct 20 their books and records accordingly. The amount of such 21 erroneous credit, when collected, shall be returned by the 22 county treasurer to the homestead credit fund to be reallocated 23 the following year as provided in this chapter subchapter . 24 Sec. 9. Section 425.11, subsection 1, unnumbered paragraph 25 1, Code 2021, is amended to read as follows: 26 For the purpose of this chapter subchapter and wherever used 27 in this chapter subchapter : 28 Sec. 10. Section 425.11, subsection 1, paragraph d, 29 subparagraph (3), Code 2021, is amended to read as follows: 30 (3) It must not embrace more than one dwelling house, but 31 where a homestead has more than one dwelling house situated 32 thereon, the credit provided for in this chapter subchapter 33 shall apply to the home and buildings used by the owner, but 34 shall not apply to any other dwelling house and buildings 35 -4- LSB 1402XD (3) 89 md/jh 4/ 21
S.F. _____ H.F. _____ appurtenant. 1 Sec. 11. Section 425.11, subsection 1, paragraph e, Code 2 2021, is amended to read as follows: 3 e. “Owner” means the person who holds the fee simple 4 title to the homestead, and in addition shall mean the person 5 occupying as a surviving spouse or the person occupying under 6 a contract of purchase which contract has been recorded in 7 the office of the county recorder of the county in which the 8 property is located; or the person occupying the homestead 9 under devise or by operation of the inheritance laws where 10 the whole interest passes or where the divided interest is 11 shared only by persons related or formerly related to each 12 other by blood, marriage or adoption; or the person occupying 13 the homestead is a shareholder of a family farm corporation 14 that owns the property; or the person occupying the homestead 15 under a deed which conveys a divided interest where the divided 16 interest is shared only by persons related or formerly related 17 to each other by blood, marriage or adoption; or where the 18 person occupying the homestead holds a life estate with the 19 reversion interest held by a nonprofit corporation organized 20 under chapter 504 , provided that the holder of the life estate 21 is liable for and pays property tax on the homestead; or where 22 the person occupying the homestead holds an interest in a 23 horizontal property regime under chapter 499B , regardless 24 of whether the underlying land committed to the horizontal 25 property regime is in fee or as a leasehold interest, provided 26 that the holder of the interest in the horizontal property 27 regime is liable for and pays property tax on the homestead; 28 or where the person occupying the homestead is a member of a 29 community land trust as defined in 42 U.S.C. §12773, regardless 30 of whether the underlying land is in fee or as a leasehold 31 interest, provided that the member of the community land 32 trust is occupying the homestead and is liable for and pays 33 property tax on the homestead. For the purpose of this chapter 34 subchapter the word “owner” shall be construed to mean a bona 35 -5- LSB 1402XD (3) 89 md/jh 5/ 21
S.F. _____ H.F. _____ fide owner and not one for the purpose only of availing the 1 person of the benefits of this chapter subchapter . In order 2 to qualify for the homestead tax credit, evidence of ownership 3 shall be on file in the office of the clerk of the district 4 court or recorded in the office of the county recorder at the 5 time the owner files with the assessor a verified statement 6 of the homestead claimed by the owner as provided in section 7 425.2 . 8 Sec. 12. Section 425.12, Code 2021, is amended to read as 9 follows: 10 425.12 Indian land. 11 Each forty acres of land, or fraction thereof, occupied by 12 a member or members of the Sac and Fox Indians in Tama county, 13 which land is held in trust by the secretary of the interior of 14 the United States for said Indians, shall be given a homestead 15 tax credit within the meaning and under the provisions of this 16 chapter subchapter . Application for such homestead tax credit 17 shall be made to the county auditor of Tama county and may be 18 made by a representative of the tribal council. 19 Sec. 13. Section 425.13, Code 2021, is amended to read as 20 follows: 21 425.13 Conspiracy to defraud. 22 If any two or more persons conspire and confederate together 23 with fraudulent intent to obtain the credit provided for under 24 the terms of this chapter subchapter by making a false deed, or 25 a false contract of purchase, they are guilty of a fraudulent 26 practice. 27 Sec. 14. Section 425.15, subsection 1, unnumbered paragraph 28 1, Code 2021, is amended to read as follows: 29 If the owner of a homestead allowed a credit under this 30 chapter subchapter is any of the following, the credit allowed 31 on the homestead from the homestead credit fund shall be the 32 entire amount of the tax levied on the homestead: 33 Sec. 15. Section 425.16, Code 2021, is amended to read as 34 follows: 35 -6- LSB 1402XD (3) 89 md/jh 6/ 21
S.F. _____ H.F. _____ 425.16 Additional tax credit. 1 1. In addition to the homestead tax credit allowed under 2 section 425.1, subsections 1 through 4 , persons who own or rent 3 their homesteads and who meet the qualifications provided in 4 this subchapter are eligible for an extraordinary a property 5 tax credit or property taxes due or reimbursement of rent 6 constituting property taxes paid . 7 2. a. The property tax credit for property taxes due under 8 this subchapter shall be administered by the department of 9 revenue, the assessor, and other county officials as provided 10 in this subchapter. 11 b. The reimbursement of rent constituting property taxes 12 paid under this subchapter shall be administered by the 13 department of human services as provided in this subchapter. 14 Sec. 16. Section 425.17, subsection 3, Code 2021, is amended 15 to read as follows: 16 3. “Gross rent” means rental paid at arm’s length for the 17 right of occupancy of a homestead or manufactured or mobile 18 home, including rent for space occupied by a manufactured 19 or mobile home not to exceed one acre. If the department 20 of revenue human services determines that the landlord and 21 tenant have not dealt with each other at arm’s length, and 22 the department of revenue human services is satisfied that 23 the gross rent charged was excessive, the department of human 24 services shall adjust the gross rent to a reasonable amount as 25 determined by the department of human services . 26 Sec. 17. Section 425.18, Code 2021, is amended to read as 27 follows: 28 425.18 Right to file a claim. 29 The right to file a claim for reimbursement or credit under 30 this subchapter may be exercised by the claimant or on behalf 31 of a claimant by the claimant’s legal guardian, spouse, or 32 attorney, or by the executor or administrator of the claimant’s 33 estate. If a claimant dies after having filed a claim for 34 reimbursement for rent constituting property taxes paid, the 35 -7- LSB 1402XD (3) 89 md/jh 7/ 21
S.F. _____ H.F. _____ amount of the reimbursement may be paid to another member of 1 the household as determined by the department of revenue of 2 human services . If the claimant was the only member of the 3 household, the reimbursement may be paid to the claimant’s 4 executor or administrator, but if neither is appointed and 5 qualified within one year from the date of the filing of 6 the claim, the reimbursement shall escheat to the state. If 7 a claimant dies after having filed a claim for credit for 8 property taxes due, the amount of credit shall be paid as if 9 the claimant had not died. 10 Sec. 18. Section 425.19, Code 2021, is amended to read as 11 follows: 12 425.19 Claim and credit or reimbursement. 13 Subject to the limitations provided in this subchapter , a 14 claimant may annually claim a credit for property taxes due 15 during the fiscal year next following the base year or claim 16 a reimbursement for rent constituting property taxes paid in 17 the base year. The amount of the credit for property taxes due 18 for a homestead shall be paid on June 15 of each year from the 19 elderly and disabled property tax credit fund under section 20 425.39, subsection 1, by the director of revenue to the county 21 treasurer who shall credit the money received against the 22 amount of the property taxes due and payable on the homestead 23 of the claimant and the amount of the reimbursement for rent 24 constituting property taxes paid shall be paid by the director 25 of human services to the claimant from the state general 26 reimbursement fund under section 425.39, subsection 2, on or 27 before December 31 of each year. 28 Sec. 19. Section 425.20, subsections 1 and 3, Code 2021, are 29 amended to read as follows: 30 1. A claim for reimbursement for rent constituting property 31 taxes paid shall not be paid or allowed, unless the claim is 32 filed with and in the possession of the department of revenue 33 human services on or before June 1 of the year following the 34 base year. 35 -8- LSB 1402XD (3) 89 md/jh 8/ 21
S.F. _____ H.F. _____ 3. In case of sickness, absence, or other disability of 1 the claimant or if, in the judgment of the director of revenue 2 or the director of human services, as applicable , good cause 3 exists and the claimant requests an extension, the director 4 of human services may extend the time for filing a claim for 5 reimbursement or and the director of revenue may extend the 6 time for filing a claim for credit. However, any further 7 time granted shall not extend beyond December 31 of the year 8 following the year in which the claim was required to be filed. 9 Claims filed as a result of this subsection shall be filed with 10 the director of human services or the director of revenue, as 11 applicable, who shall provide for the reimbursement of the 12 claim to the claimant. 13 Sec. 20. Section 425.23, subsection 3, paragraph a, Code 14 2021, is amended to read as follows: 15 a. A person who is eligible to file a claim for credit 16 for property taxes due and who has a household income of 17 eight thousand five hundred dollars or less and who has 18 an unpaid special assessment levied against the homestead 19 may file a claim for a special assessment credit with the 20 county treasurer. The department of revenue shall provide 21 to the respective treasurers the forms necessary for the 22 administration of this subsection . The claim shall be filed 23 not later than September 30 of each year. Upon the filing of 24 the claim, interest for late payment shall not accrue against 25 the amount of the unpaid special assessment due and payable. 26 The claim filed by the claimant constitutes a claim for credit 27 of an amount equal to the actual amount due upon the unpaid 28 special assessment, plus interest, payable during the fiscal 29 year for which the claim is filed against the homestead of 30 the claimant. However, where the claimant is an individual 31 described in section 425.17, subsection 2 , paragraph “a” , 32 subparagraph (2), and the tentative credit is determined 33 according to the schedule in subsection 1 , paragraph “b” , 34 subparagraph (2), of this section , the claim filed constitutes 35 -9- LSB 1402XD (3) 89 md/jh 9/ 21
S.F. _____ H.F. _____ a claim for credit of an amount equal to one-half of the actual 1 amount due and payable during the fiscal year. The treasurer 2 shall certify to the director of revenue not later than October 3 15 of each year the total amount of dollars due for claims 4 allowed. The amount of reimbursement due each county shall be 5 certified by the director of revenue and paid by the director 6 of the department of administrative services by November 15 7 of each year, drawn upon warrants payable to the respective 8 treasurer. There is appropriated annually from the general 9 fund of the state to the department of revenue an amount 10 sufficient to carry out the provisions of this subsection . The 11 treasurer shall credit any moneys received from the department 12 of revenue against the amount of the unpaid special assessment 13 due and payable on the homestead of the claimant. 14 Sec. 21. Section 425.23, subsection 4, Code 2021, is amended 15 by adding the following new paragraph: 16 NEW PARAGRAPH . c. The cumulative adjustment factor shall be 17 determined annually by the department of revenue. 18 Sec. 22. Section 425.25, Code 2021, is amended to read as 19 follows: 20 425.25 Administration —— claim forms . 21 1. The director of revenue shall make available suitable 22 forms with instructions for claimants of the credit for 23 property taxes due . Each assessor and county treasurer shall 24 make available the forms and instructions. The claim shall 25 be in a form as the director of revenue may prescribe. The 26 director may shall also devise a tax credit or reimbursement 27 table, with amounts rounded to the nearest even whole dollar. 28 Reimbursements or credits Credits in the amount of less than 29 one dollar shall not be paid. 30 2. The director of human services shall make available 31 suitable forms with instructions for claimants of the 32 reimbursement for rent constituting property taxes paid. The 33 claim shall be in a form as the director of human services 34 may prescribe. The director of revenue shall devise a 35 -10- LSB 1402XD (3) 89 md/jh 10/ 21
S.F. _____ H.F. _____ reimbursement table with amounts rounded to the nearest even 1 whole dollar and provide such table to the director of human 2 services. Reimbursements in the amount of less than one dollar 3 shall not be paid. 4 Sec. 23. Section 425.26, Code 2021, is amended to read as 5 follows: 6 425.26 Proof of claim. 7 1. Every claimant for the credit for property taxes due 8 shall give the department of revenue, in support of the claim, 9 reasonable proof of: 10 a. Age and total disability, if any. 11 b. Property taxes due or rent constituting property taxes 12 paid, including the name and address of the owner or manager 13 of the property rented and a statement whether the claimant is 14 related by blood, marriage, or adoption to the owner or manager 15 of the property rented . 16 c. Homestead credit allowed against property taxes due. 17 d. Changes of homestead. 18 e. Household membership. 19 f. Household income. 20 g. Size and nature of property claimed as the homestead. 21 2. Every claimant for reimbursement of rent constituting 22 property taxes paid shall give the department of human 23 services, in support of the claim, reasonable proof of: 24 a. Age and total disability, if any. 25 b. Rent constituting property taxes paid, including the name 26 and address of the owner or manager of the property rented and 27 a statement whether the claimant is related by blood, marriage, 28 or adoption to the owner or manager of the property rented. 29 c. Changes of homestead. 30 d. Household membership. 31 e. Household income. 32 f. Size and nature of property claimed as the homestead. 33 2. 3. The department of revenue or the department of human 34 services may require any additional proof necessary to support 35 -11- LSB 1402XD (3) 89 md/jh 11/ 21
S.F. _____ H.F. _____ a claim. 1 Sec. 24. Section 425.27, Code 2021, is amended to read as 2 follows: 3 425.27 Audit —— recalculation or denial —— appeals. 4 1. a. The department of revenue is responsible for the 5 audit of claims for credit of property taxes due under this 6 subchapter. 7 b. The department of human services is responsible for 8 the audit of claims for reimbursement for rent constituting 9 property taxes paid under this subchapter. 10 2. If on the audit of a claim for credit or reimbursement 11 under this subchapter , the department of revenue determines 12 the amount of the claim to have been incorrectly calculated 13 or that the claim is not allowable, the department of revenue 14 shall recalculate the claim and notify the claimant of 15 the recalculation or denial and the reasons for it. The 16 recalculation of the claim shall be final unless appealed to 17 the director of revenue within thirty days from the date of 18 notice of recalculation or denial. The director of revenue 19 shall grant a hearing, and upon hearing determine the correct 20 claim, if any, and notify the claimant of the decision by mail. 21 The department of revenue shall not adjust a claim after three 22 years from October 31 of the year in which the claim was filed. 23 If the claim for reimbursement has been paid, the amount may be 24 recovered by assessment in the same manner that income taxes 25 are assessed under sections 422.26 and 422.30 . If the claim 26 for credit has been paid, the department of revenue shall give 27 notification to the claimant and the county treasurer of the 28 recalculation or denial of the claim and the county treasurer 29 shall proceed to collect the tax owed in the same manner as 30 other property taxes due and payable are collected, if the 31 property on which the credit was granted is still owned by the 32 claimant, and repay the amount to the director upon collection. 33 If the property on which the credit was granted is not owned by 34 the claimant, the amount may be recovered from the claimant by 35 -12- LSB 1402XD (3) 89 md/jh 12/ 21
S.F. _____ H.F. _____ assessment in the same manner that income taxes are assessed 1 under sections 422.26 and 422.30 . The decision of the director 2 of revenue shall be final unless appealed as provided in 3 section 425.31 . 4 3. If on the audit of a claim for reimbursement for rent 5 constituting property taxes paid under this subchapter, the 6 department of human services determines the amount of the claim 7 to have been incorrectly calculated or that the claim is not 8 allowable, the department of human services shall recalculate 9 the claim and notify the claimant of the recalculation or 10 denial and the reasons for it. The recalculation of the 11 claim shall be final unless appealed to the director of 12 human services within thirty days from the date of notice of 13 recalculation or denial. The director of human services shall 14 grant a hearing, and upon hearing determine the correct claim, 15 if any, and notify the claimant of the decision by mail. The 16 department of human services shall not adjust a claim after 17 three years from October 31 of the year in which the claim 18 was filed. If the claim for reimbursement has been paid, the 19 amount may be recovered by the department of human services. 20 The decision of the director of human services shall be final 21 unless appealed as provided in section 425.31. 22 4. a. Section For the purpose of administering the credit 23 for property taxes due, including the duties of the director 24 of revenue and the department of revenue, section 422.70 is 25 applicable with respect to this subchapter . 26 b. For the purpose of administering the reimbursement for 27 rent constituting property taxes paid, including the duties 28 of the director of human services and the department of human 29 services under this subchapter, the director of human services 30 shall have the same powers as those described in section 31 422.70. 32 Sec. 25. Section 425.28, Code 2021, is amended to read as 33 follows: 34 425.28 Waiver of confidentiality. 35 -13- LSB 1402XD (3) 89 md/jh 13/ 21
S.F. _____ H.F. _____ 1. A claimant for the credit for property taxes due shall 1 expressly waive any right to confidentiality relating to all 2 income tax information obtainable through the department of 3 revenue, including all information covered by sections 422.20 4 and 422.72 . This waiver shall apply to information available 5 to the county treasurer who shall hold the information 6 confidential except that it may be used as evidence to disallow 7 the credit. 8 2. A claimant for reimbursement of rent constituting 9 property taxes paid shall expressly waive any right to 10 confidentiality relating to all income tax information 11 obtainable by the department of human services. 12 3. For the effective administration of this subchapter, 13 the department of revenue and the department of human services 14 shall share information obtained by each department from 15 claimants under this subchapter. 16 2. 4. The In addition to the sharing of information under 17 subsection 3, the department of revenue human services may 18 release information pertaining to a person’s eligibility or 19 claim for or receipt of rent reimbursement to an employee of 20 the department of inspections and appeals in the employee’s 21 official conduct of an audit or investigation. 22 Sec. 26. Section 425.29, Code 2021, is amended to read as 23 follows: 24 425.29 False claim —— penalty. 25 1. A person who makes a false affidavit for the purpose 26 of obtaining credit or reimbursement provided for in 27 this subchapter or who knowingly receives the credit or 28 reimbursement without being legally entitled to it or makes 29 claim for the credit or reimbursement in more than one county 30 in the state without being legally entitled to it is guilty of 31 a fraudulent practice. The claim for credit or reimbursement 32 shall be disallowed in full and if the claim has been paid the 33 amount shall be recovered in the manner provided in section 34 425.27 . 35 -14- LSB 1402XD (3) 89 md/jh 14/ 21
S.F. _____ H.F. _____ 2. The In the case of a claim for credit disallowed by the 1 department of revenue , the department of revenue may impose 2 penalties under section 421.27 . The department of revenue 3 shall send a notice of disallowance of the claim. 4 3. In the case of a claim for reimbursement disallowed 5 by the department of human services, the department of human 6 services may impose penalties described in section 421.27. 7 The department of human services shall send a notice of 8 disallowance of the claim. 9 Sec. 27. Section 425.30, Code 2021, is amended by striking 10 the section and inserting in lieu thereof the following: 11 425.30 Notices. 12 1. A notice authorized or required under this subchapter 13 related to a credit for property taxes due may be given by 14 mailing the notice to the person for whom it is intended, 15 addressed to that person at the address given in the last 16 credit claim form filed by the person pursuant to this 17 subchapter, or if no return has been filed, then to any address 18 obtainable. 19 2. A notice authorized or required under this subchapter 20 related to a reimbursement for rent constituting property taxes 21 paid may be given by mailing the notice to the person for whom 22 it is intended, addressed to that person at the address given 23 in the reimbursement claim form filed by the person pursuant 24 to this subchapter, or if no return has been filed, then to any 25 address obtainable. 26 3. The mailing of the notice is presumptive evidence of the 27 receipt of the notice by the person to whom addressed. Any 28 period of time which is determined according to this subchapter 29 by the giving of notice commences to run from the date of 30 mailing of the notice. 31 Sec. 28. Section 425.31, Code 2021, is amended by striking 32 the section and inserting in lieu thereof the following: 33 425.31 Appeals. 34 1. Judicial review of the actions of the director of revenue 35 -15- LSB 1402XD (3) 89 md/jh 15/ 21
S.F. _____ H.F. _____ or the department of revenue under this subchapter may be 1 sought in accordance with the terms of chapter 17A and the 2 rules of the department of revenue. 3 2. Judicial review of the actions of the director of 4 human services or the department of human services under this 5 subchapter may be sought in accordance with the terms of 6 chapter 17A and the rules of the department of human services. 7 3. For cause and upon a showing by the director of revenue 8 or the director of human services, as applicable, that 9 collection of the amount in dispute is in doubt, the court may 10 order the petitioner to file with the clerk a bond for the use 11 of the respondent, with sureties approved by the clerk, equal 12 to the amount appealed from, conditioned that the petitioner 13 shall perform the orders of the court. 14 4. An appeal may be taken by the claimant or the director 15 of revenue or the director of human services, as applicable, 16 to the supreme court of this state irrespective of the amount 17 involved. 18 Sec. 29. Section 425.32, Code 2021, is amended to read as 19 follows: 20 425.32 Disallowance of certain claims for credit . 21 A claim for credit for property taxes due shall be disallowed 22 if the department of revenue finds that the claimant or a 23 person of the claimant’s household received title to the 24 homestead primarily for the purpose of receiving benefits under 25 this subchapter . 26 Sec. 30. Section 425.33, Code 2021, is amended to read as 27 follows: 28 425.33 Rent increase —— request and order for reduction. 29 1. If upon petition by a claimant the department of revenue 30 human services determines that a landlord has increased the 31 claimant’s rent primarily because the claimant is eligible for 32 reimbursement under this subchapter , the department of revenue 33 human services shall request the landlord by mail to reduce the 34 rent appropriately. 35 -16- LSB 1402XD (3) 89 md/jh 16/ 21
S.F. _____ H.F. _____ 2. In determining whether a landlord has increased a 1 claimant’s rent primarily because the claimant is eligible for 2 reimbursement under this subchapter , the department of revenue 3 human services shall consider the following factors: 4 a. The amount of the increase in rent. 5 b. If the landlord operates other rental property, whether a 6 similar increase was imposed on the other rental property. 7 c. Increased or decreased costs of materials, supplies, 8 services, and taxes in the area. 9 d. The time the rent was increased. 10 e. Other relevant factors in each particular case. 11 3. If the landlord fails to comply with the request of 12 the department of revenue human services within fifteen days 13 after the request is mailed by the department , the department 14 of revenue human services shall order the rent reduced by an 15 appropriate amount. 16 Sec. 31. Section 425.34, Code 2021, is amended to read as 17 follows: 18 425.34 Hearings Rent increase hearings and appeals. 19 1. If the department of revenue human services orders a 20 landlord to reduce rent to a claimant, then upon the request 21 of the landlord the department of revenue human services 22 shall hold a prompt hearing of the matter, to be conducted in 23 accordance with the rules of the department. The department 24 of revenue human services shall give notice of the decision by 25 mail to the claimant and to the landlord. 26 2. The claimant and the landlord shall have the rights of 27 appeal and review as provided in section 425.31 . 28 Sec. 32. Section 425.37, Code 2021, is amended to read as 29 follows: 30 425.37 Rules. 31 The director of revenue and the director of human services 32 shall each adopt rules in accordance with chapter 17A for the 33 interpretation and proper administration of this subchapter 34 and each department’s applicable powers and duties under this 35 -17- LSB 1402XD (3) 89 md/jh 17/ 21
S.F. _____ H.F. _____ subchapter , including rules to prevent and disallow duplication 1 of benefits and to prevent any unreasonable hardship or 2 advantage to any person. 3 Sec. 33. Section 425.39, Code 2021, is amended to read as 4 follows: 5 425.39 Fund Funds created —— appropriation appropriations —— 6 priority. 7 1. The elderly and disabled property tax credit and 8 reimbursement fund is created. There is appropriated annually 9 from the general fund of the state to the department of revenue 10 to be credited to the elderly and disabled property tax credit 11 and reimbursement fund, from funds not otherwise appropriated, 12 an amount sufficient to implement this subchapter for credits 13 for property taxes due for claimants described in section 14 425.17, subsection 2 , paragraph “a” , subparagraph (1). 15 2. The elderly and disabled rent reimbursement fund is 16 created. There is appropriated annually from the general fund 17 of the state to the department of human services to be credited 18 to the elderly and disabled rent reimbursement fund, from funds 19 not otherwise appropriated, an amount sufficient to implement 20 this subchapter for reimbursement for rent constituting 21 property taxes paid for claimants described in section 425.17, 22 subsection 2, paragraph “a” , subparagraph (1). 23 Sec. 34. Section 425.40, Code 2021, is amended to read as 24 follows: 25 425.40 Low-income fund created. 26 1. A low-income tax credit and reimbursement fund is 27 created. Within the low-income tax credit and reimbursement 28 fund, a rent reimbursement account is created under the control 29 of the department of human services and a tax credit account 30 is created under the control of the department of revenue. 31 Amounts appropriated to the fund shall first be credited to the 32 reimbursement account. 33 2. a. If The director of human services shall use amounts 34 credited to the rent reimbursement account for a fiscal year 35 -18- LSB 1402XD (3) 89 md/jh 18/ 21
S.F. _____ H.F. _____ to pay all claims for reimbursement of rent constituting 1 property taxes paid for claimants described in section 425.17, 2 subsection 2, paragraph “a” , subparagraph (2). If the amount 3 appropriated for purposes of this section for a fiscal year and 4 credited to the rent reimbursement account is insufficient to 5 pay all claims in full, the director of human services shall 6 pay , in full, all claims to be paid during the fiscal year 7 for reimbursement of rent constituting property taxes paid or 8 if moneys are insufficient to pay all such claims on a pro 9 rata basis. If the amount of claims for credit for property 10 taxes due to be paid during the fiscal year exceed the amount 11 remaining after payment to renters, the director of revenue 12 shall prorate the payments to the counties for the property tax 13 credit. 14 b. If the amount appropriated for purposes of this section 15 for a fiscal year and credited to the rent reimbursement 16 account exceeds the amount necessary to pay in full all 17 reimbursement claims for the fiscal year, the department 18 of human services shall transfer such excess amount to the 19 department of revenue for deposit in the tax credit account. 20 The department of revenue shall use any amounts credited to the 21 tax credit account for a fiscal year to pay to the counties all 22 claims for credit for property taxes due for the fiscal year, 23 or if such amount is insufficient, to pay to the counties all 24 such claims on a pro rata basis. 25 3. In order for the director of revenue or the director of 26 human services to carry out the requirements of this subsection 27 2 , notwithstanding any provision to the contrary in this 28 subchapter , claims for reimbursement for rent constituting 29 property taxes paid filed before May 1 of the fiscal year 30 shall be eligible to be paid in full during the fiscal year 31 and those claims filed on or after May 1 of the fiscal year 32 shall be eligible to be paid during the following fiscal year 33 and the director of revenue is not required to make payments 34 to counties for the property tax credit before June 15 of the 35 -19- LSB 1402XD (3) 89 md/jh 19/ 21
S.F. _____ H.F. _____ fiscal year. 1 Sec. 35. TRANSITION PROVISION —— ADMINISTRATIVE RULES. The 2 department of revenue shall continue to administer that 3 portion of chapter 425, subchapter II, relating to claims for 4 reimbursement of rent constituting property taxes paid until 5 the department of human services has adopted rules to assume 6 such administration as provided in this Act, but not later than 7 January 1, 2022. 8 Sec. 36. EFFECTIVE DATE. This Act, being deemed of 9 immediate importance, takes effect upon enactment. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 Current Code chapter 425, subchapter II, provides a 14 property tax credit or rent reimbursement for certain elderly 15 and disabled persons in addition to the homestead property 16 tax credit. Current Code chapter 425, subchapter II, also 17 establishes a similar property tax credit or reimbursement 18 for rent constituting property taxes paid for persons who are 19 23 years of age or older or who are a head of household, but 20 who have not attained the age of 65 or incurred the requisite 21 disability status. The provision of these credits is triggered 22 by an appropriation to and payment from the low-income tax 23 credit and reimbursement fund established in Code section 24 425.40. The department of revenue administers the property tax 25 credit and rent reimbursement programs under Code chapter 425, 26 subchapter II. 27 This bill transfers responsibility for administration of 28 the claims for rent constituting property taxes paid to the 29 department of revenue and modifies various provisions of Code 30 chapter 425, subchapter II, and enacts several provisions 31 applicable to the department of human services and the director 32 of human services that are similar to those applicable to the 33 department of revenue and the director of revenue regarding 34 administration of the claims for property taxes due, over which 35 -20- LSB 1402XD (3) 89 md/jh 20/ 21
S.F. _____ H.F. _____ the department of revenue will retain administrative control. 1 The bill provides for the creation of two separate funds 2 in lieu of the elderly and disabled property tax credit and 3 reimbursement fund under current Code section 425.39 and 4 modifies the structure of the low-income fund under Code 5 section 425.40 to include a tax credit account under the 6 control of the department of revenue and a rent reimbursement 7 account under the control of the department of human services. 8 The bill also changes several references to “this chapter” 9 within Code chapter 425, subchapter I, to reflect the 10 provisions’ applicability. 11 The bill takes effect upon enactment. 12 Under the bill, the department of revenue will continue 13 to administer that portion of Code chapter 425, subchapter 14 II, relating to claims for reimbursement of rent constituting 15 property taxes paid until the department of human services has 16 adopted rules to assume such administration as provided in the 17 bill, but not later than January 1, 2022. 18 -21- LSB 1402XD (3) 89 md/jh 21/ 21
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