House File 368 - Introduced
HOUSE FILE 368
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HSB 120)
A BILL FOR
1 An Act relating to the administration of the reimbursement for
2 rent constituting property taxes paid and related matters
3 and including effective date provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1402HV (2) 89
md/jh
H.F. 368
1 Section 1. Section 331.559, subsection 12, Code 2021, is
2 amended to read as follows:
3 12. Carry out duties relating to the administration of the
4 homestead tax credit and other credits as provided in sections
5 425.4, 425.5, 425.7, 425.9, 425.10, and 425.25.
6 Sec. 2. Section 425.1, subsections 1, 4, and 6, Code 2021,
7 are amended to read as follows:
8 1. a. A homestead credit fund is created. There is
9 appropriated annually from the general fund of the state to
10 the department of revenue to be credited to the homestead
11 credit fund, an amount sufficient to implement this chapter
12 subchapter.
13 b. The director of the department of administrative services
14 shall issue warrants on the homestead credit fund payable to
15 the county treasurers of the several counties of the state
16 under this chapter subchapter.
17 4. Annually the department of revenue shall certify to
18 the county auditor of each county the credit and its amount
19 in dollars. Each county auditor shall then enter the credit
20 against the tax levied on each eligible homestead in each
21 county payable during the ensuing year, designating on the tax
22 lists the credit as being from the homestead credit fund, and
23 credit shall then be given to the several taxing districts in
24 which eligible homesteads are located in an amount equal to the
25 credits allowed on the taxes of the homesteads. The amount of
26 credits shall be apportioned by each county treasurer to the
27 several taxing districts as provided by law, in the same manner
28 as though the amount of the credit had been paid by the owners
29 of the homesteads. However, the several taxing districts shall
30 not draw the funds so credited until after the semiannual
31 allocations have been received by the county treasurer, as
32 provided in this chapter subchapter. Each county treasurer
33 shall show on each tax receipt the amount of credit received
34 from the homestead credit fund.
35 6. The homestead tax credit allowed in this chapter
LSB 1402HV (2) 89
-1- md/jh 1/21
H.F. 368
1 subchapter shall not exceed the actual amount of taxes payable
2 on the eligible homestead, exclusive of any special assessments
3 levied against the homestead.
4 Sec. 3. Section 425.2, subsections 1 and 3, Code 2021, are
5 amended to read as follows:
6 1. A person who wishes to qualify for the homestead
7 credit allowed under this chapter subchapter shall obtain the
8 appropriate forms for filing for the credit from the assessor.
9 The person claiming the credit shall file a verified statement
10 and designation of homestead with the assessor for the year for
11 which the person is first claiming the credit. The claim shall
12 be filed not later than July 1 of the year for which the person
13 is claiming the credit. A claim filed after July 1 of the year
14 for which the person is claiming the credit shall be considered
15 as a claim filed for the following year.
16 3. In case the owner of the homestead is in active service
17 in the armed forces of this state or of the United States, or is
18 sixty-five years of age or older, or is disabled, the statement
19 and designation may be signed and delivered by any member of
20 the owner’s family, by the owner’s guardian or conservator, or
21 by any other person who may represent the owner under power
22 of attorney. If the owner of the homestead is married, the
23 spouse may sign and deliver the statement and designation. The
24 director of human services or the director’s designee may make
25 application for the benefits of this chapter subchapter as the
26 agent for and on behalf of persons receiving assistance under
27 chapter 249.
28 Sec. 4. Section 425.6, Code 2021, is amended to read as
29 follows:
30 425.6 Waiver by neglect.
31 If a person fails to file a claim or to have a claim on file
32 with the assessor for the credits provided in this chapter
33 subchapter, the person is deemed to have waived the homestead
34 credit for the year in which the person failed to file the
35 claim or to have a claim on file with the assessor.
LSB 1402HV (2) 89
-2- md/jh 2/21
H.F. 368
1 Sec. 5. Section 425.7, subsections 1 and 2, Code 2021, are
2 amended to read as follows:
3 1. Any person whose claim is denied under the provisions of
4 this chapter subchapter may appeal from the action of the board
5 of supervisors to the district court of the county in which
6 said claimed homestead is situated by giving written notice of
7 such appeal to the county auditor of said county within twenty
8 days from the date of mailing of notice of such action by the
9 board of supervisors.
10 2. In the event any claim under this chapter subchapter is
11 allowed, any owner of an eligible homestead may appeal from the
12 action of the board of supervisors to the district court of the
13 county in which said claimed homestead is situated, by giving
14 written notice of such appeal to the county auditor of said
15 county and such notice to the owner of said claimed homestead
16 as a judge of the district court shall direct.
17 Sec. 6. Section 425.8, Code 2021, is amended to read as
18 follows:
19 425.8 Forms —— rules.
20 1. The director of revenue shall prescribe the form
21 for the making of a verified statement and designation of
22 homestead, the form for the supporting affidavits required
23 herein, and such other forms as may be necessary for the proper
24 administration of this chapter subchapter. Whenever necessary,
25 the department of revenue shall forward to the county auditors
26 of the several counties in the state the prescribed sample
27 forms, and the county auditors shall furnish blank forms
28 prepared in accordance therewith with the assessment rolls,
29 books, and supplies delivered to the assessors. The department
30 of revenue shall prescribe and the county auditors shall
31 provide on the forms for claiming the homestead credit a
32 statement to the effect that the owner realizes that the owner
33 must give written notice to the assessor when the owner changes
34 the use of the property.
35 2. The director of revenue may prescribe rules, not
LSB 1402HV (2) 89
-3- md/jh 3/21
H.F. 368
1 inconsistent with the provisions of this chapter subchapter,
2 necessary to carry out and effectuate its purposes.
3 Sec. 7. Section 425.9, subsection 1, Code 2021, is amended
4 to read as follows:
5 1. If the amount of credit apportioned to any homestead
6 under the provisions of this chapter subchapter in any
7 year shall exceed the total tax, exclusive of any special
8 assessments levied against said homestead, then such excess
9 shall be remitted by the county treasurer to the department of
10 revenue to be redeposited in the homestead credit fund and be
11 reallocated the following year by the department as provided in
12 this chapter subchapter.
13 Sec. 8. Section 425.10, Code 2021, is amended to read as
14 follows:
15 425.10 Reversal of allowed claim.
16 In the event any claim is allowed, and subsequently reversed
17 on appeal, any credit made thereunder shall be void, and the
18 amount of such credit shall be charged against the property in
19 question, and the director of revenue, the county auditor, and
20 the county treasurer are authorized and directed to correct
21 their books and records accordingly. The amount of such
22 erroneous credit, when collected, shall be returned by the
23 county treasurer to the homestead credit fund to be reallocated
24 the following year as provided in this chapter subchapter.
25 Sec. 9. Section 425.11, subsection 1, unnumbered paragraph
26 1, Code 2021, is amended to read as follows:
27 For the purpose of this chapter subchapter and wherever used
28 in this chapter subchapter:
29 Sec. 10. Section 425.11, subsection 1, paragraph d,
30 subparagraph (3), Code 2021, is amended to read as follows:
31 (3) It must not embrace more than one dwelling house, but
32 where a homestead has more than one dwelling house situated
33 thereon, the credit provided for in this chapter subchapter
34 shall apply to the home and buildings used by the owner, but
35 shall not apply to any other dwelling house and buildings
LSB 1402HV (2) 89
-4- md/jh 4/21
H.F. 368
1 appurtenant.
2 Sec. 11. Section 425.11, subsection 1, paragraph e, Code
3 2021, is amended to read as follows:
4 e. “Owner” means the person who holds the fee simple
5 title to the homestead, and in addition shall mean the person
6 occupying as a surviving spouse or the person occupying under
7 a contract of purchase which contract has been recorded in
8 the office of the county recorder of the county in which the
9 property is located; or the person occupying the homestead
10 under devise or by operation of the inheritance laws where
11 the whole interest passes or where the divided interest is
12 shared only by persons related or formerly related to each
13 other by blood, marriage or adoption; or the person occupying
14 the homestead is a shareholder of a family farm corporation
15 that owns the property; or the person occupying the homestead
16 under a deed which conveys a divided interest where the divided
17 interest is shared only by persons related or formerly related
18 to each other by blood, marriage or adoption; or where the
19 person occupying the homestead holds a life estate with the
20 reversion interest held by a nonprofit corporation organized
21 under chapter 504, provided that the holder of the life estate
22 is liable for and pays property tax on the homestead; or where
23 the person occupying the homestead holds an interest in a
24 horizontal property regime under chapter 499B, regardless
25 of whether the underlying land committed to the horizontal
26 property regime is in fee or as a leasehold interest, provided
27 that the holder of the interest in the horizontal property
28 regime is liable for and pays property tax on the homestead;
29 or where the person occupying the homestead is a member of a
30 community land trust as defined in 42 U.S.C. §12773, regardless
31 of whether the underlying land is in fee or as a leasehold
32 interest, provided that the member of the community land
33 trust is occupying the homestead and is liable for and pays
34 property tax on the homestead. For the purpose of this chapter
35 subchapter the word “owner” shall be construed to mean a bona
LSB 1402HV (2) 89
-5- md/jh 5/21
H.F. 368
1 fide owner and not one for the purpose only of availing the
2 person of the benefits of this chapter subchapter. In order
3 to qualify for the homestead tax credit, evidence of ownership
4 shall be on file in the office of the clerk of the district
5 court or recorded in the office of the county recorder at the
6 time the owner files with the assessor a verified statement
7 of the homestead claimed by the owner as provided in section
8 425.2.
9 Sec. 12. Section 425.12, Code 2021, is amended to read as
10 follows:
11 425.12 Indian land.
12 Each forty acres of land, or fraction thereof, occupied by
13 a member or members of the Sac and Fox Indians in Tama county,
14 which land is held in trust by the secretary of the interior of
15 the United States for said Indians, shall be given a homestead
16 tax credit within the meaning and under the provisions of this
17 chapter subchapter. Application for such homestead tax credit
18 shall be made to the county auditor of Tama county and may be
19 made by a representative of the tribal council.
20 Sec. 13. Section 425.13, Code 2021, is amended to read as
21 follows:
22 425.13 Conspiracy to defraud.
23 If any two or more persons conspire and confederate together
24 with fraudulent intent to obtain the credit provided for under
25 the terms of this chapter subchapter by making a false deed, or
26 a false contract of purchase, they are guilty of a fraudulent
27 practice.
28 Sec. 14. Section 425.15, subsection 1, unnumbered paragraph
29 1, Code 2021, is amended to read as follows:
30 If the owner of a homestead allowed a credit under this
31 chapter subchapter is any of the following, the credit allowed
32 on the homestead from the homestead credit fund shall be the
33 entire amount of the tax levied on the homestead:
34 Sec. 15. Section 425.16, Code 2021, is amended to read as
35 follows:
LSB 1402HV (2) 89
-6- md/jh 6/21
H.F. 368
1 425.16 Additional tax credit.
2 1. In addition to the homestead tax credit allowed under
3 section 425.1, subsections 1 through 4, persons who own or rent
4 their homesteads and who meet the qualifications provided in
5 this subchapter are eligible for an extraordinary a property
6 tax credit or property taxes due or reimbursement of rent
7 constituting property taxes paid.
8 2. a. The property tax credit for property taxes due under
9 this subchapter shall be administered by the department of
10 revenue, the assessor, and other county officials as provided
11 in this subchapter.
12 b. The reimbursement of rent constituting property taxes
13 paid under this subchapter shall be administered by the
14 department of human services as provided in this subchapter.
15 Sec. 16. Section 425.17, subsection 3, Code 2021, is amended
16 to read as follows:
17 3. “Gross rent” means rental paid at arm’s length for the
18 right of occupancy of a homestead or manufactured or mobile
19 home, including rent for space occupied by a manufactured
20 or mobile home not to exceed one acre. If the department
21 of revenue human services determines that the landlord and
22 tenant have not dealt with each other at arm’s length, and
23 the department of revenue human services is satisfied that
24 the gross rent charged was excessive, the department of human
25 services shall adjust the gross rent to a reasonable amount as
26 determined by the department of human services.
27 Sec. 17. Section 425.18, Code 2021, is amended to read as
28 follows:
29 425.18 Right to file a claim.
30 The right to file a claim for reimbursement or credit under
31 this subchapter may be exercised by the claimant or on behalf
32 of a claimant by the claimant’s legal guardian, spouse, or
33 attorney, or by the executor or administrator of the claimant’s
34 estate. If a claimant dies after having filed a claim for
35 reimbursement for rent constituting property taxes paid, the
LSB 1402HV (2) 89
-7- md/jh 7/21
H.F. 368
1 amount of the reimbursement may be paid to another member of
2 the household as determined by the department of revenue of
3 human services. If the claimant was the only member of the
4 household, the reimbursement may be paid to the claimant’s
5 executor or administrator, but if neither is appointed and
6 qualified within one year from the date of the filing of
7 the claim, the reimbursement shall escheat to the state. If
8 a claimant dies after having filed a claim for credit for
9 property taxes due, the amount of credit shall be paid as if
10 the claimant had not died.
11 Sec. 18. Section 425.19, Code 2021, is amended to read as
12 follows:
13 425.19 Claim and credit or reimbursement.
14 Subject to the limitations provided in this subchapter, a
15 claimant may annually claim a credit for property taxes due
16 during the fiscal year next following the base year or claim
17 a reimbursement for rent constituting property taxes paid in
18 the base year. The amount of the credit for property taxes due
19 for a homestead shall be paid on June 15 of each year from the
20 elderly and disabled property tax credit fund under section
21 425.39, subsection 1, by the director of revenue to the county
22 treasurer who shall credit the money received against the
23 amount of the property taxes due and payable on the homestead
24 of the claimant and the amount of the reimbursement for rent
25 constituting property taxes paid shall be paid by the director
26 of human services to the claimant from the state general
27 reimbursement fund under section 425.39, subsection 2, on or
2