Bill Summary – FastDemocracy

House File 368 - Enrolled
                                                      House File 368
                                 AN ACT
    RELATING TO THE ADMINISTRATION OF THE REIMBURSEMENT FOR RENT
       CONSTITUTING PROPERTY TAXES PAID AND RELATED MATTERS AND
       INCLUDING EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1. Section 331.559, subsection 12, Code 2021, is
 amended to read as follows:
    12. Carry out duties relating to the administration of the
 homestead tax credit and other credits as provided in sections
 425.4, 425.5, 425.7, 425.9, 425.10, and 425.25.
    Sec. 2. Section 425.1, subsections 1, 4, and 6, Code 2021,
 are amended to read as follows:
    1. a. A homestead credit fund is created. There is
 appropriated annually from the general fund of the state to
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 the department of revenue to be credited to the homestead
 credit fund, an amount sufficient to implement this chapter
 subchapter.
    b. The director of the department of administrative services
 shall issue warrants on the homestead credit fund payable to
 the county treasurers of the several counties of the state
 under this chapter subchapter.
    4. Annually the department of revenue shall certify to
 the county auditor of each county the credit and its amount
 in dollars. Each county auditor shall then enter the credit
 against the tax levied on each eligible homestead in each
 county payable during the ensuing year, designating on the tax
 lists the credit as being from the homestead credit fund, and
 credit shall then be given to the several taxing districts in
 which eligible homesteads are located in an amount equal to the
 credits allowed on the taxes of the homesteads. The amount of
 credits shall be apportioned by each county treasurer to the
 several taxing districts as provided by law, in the same manner
 as though the amount of the credit had been paid by the owners
 of the homesteads. However, the several taxing districts shall
 not draw the funds so credited until after the semiannual
 allocations have been received by the county treasurer, as
 provided in this chapter subchapter. Each county treasurer
 shall show on each tax receipt the amount of credit received
 from the homestead credit fund.
    6. The homestead tax credit allowed in this chapter
 subchapter shall not exceed the actual amount of taxes payable
 on the eligible homestead, exclusive of any special assessments
 levied against the homestead.
    Sec. 3. Section 425.2, subsections 1 and 3, Code 2021, are
 amended to read as follows:
    1. A person who wishes to qualify for the homestead
 credit allowed under this chapter subchapter shall obtain the
 appropriate forms for filing for the credit from the assessor.
 The person claiming the credit shall file a verified statement
 and designation of homestead with the assessor for the year for
 which the person is first claiming the credit. The claim shall
 be filed not later than July 1 of the year for which the person
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 is claiming the credit. A claim filed after July 1 of the year
 for which the person is claiming the credit shall be considered
 as a claim filed for the following year.
    3. In case the owner of the homestead is in active service
 in the armed forces of this state or of the United States, or is
 sixty-five years of age or older, or is disabled, the statement
 and designation may be signed and delivered by any member of
 the owner’s family, by the owner’s guardian or conservator, or
 by any other person who may represent the owner under power
 of attorney. If the owner of the homestead is married, the
 spouse may sign and deliver the statement and designation. The
 director of human services or the director’s designee may make
 application for the benefits of this chapter subchapter as the
 agent for and on behalf of persons receiving assistance under
 chapter 249.
    Sec. 4. Section 425.6, Code 2021, is amended to read as
 follows:
    425.6 Waiver by neglect.
    If a person fails to file a claim or to have a claim on file
 with the assessor for the credits provided in this chapter
 subchapter, the person is deemed to have waived the homestead
 credit for the year in which the person failed to file the
 claim or to have a claim on file with the assessor.
    Sec. 5. Section 425.7, subsections 1 and 2, Code 2021, are
 amended to read as follows:
    1. Any person whose claim is denied under the provisions of
 this chapter subchapter may appeal from the action of the board
 of supervisors to the district court of the county in which
 said claimed homestead is situated by giving written notice of
 such appeal to the county auditor of said county within twenty
 days from the date of mailing of notice of such action by the
 board of supervisors.
    2. In the event any claim under this chapter subchapter is
 allowed, any owner of an eligible homestead may appeal from the
 action of the board of supervisors to the district court of the
 county in which said claimed homestead is situated, by giving
 written notice of such appeal to the county auditor of said
 county and such notice to the owner of said claimed homestead
 as a judge of the district court shall direct.
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    Sec. 6. Section 425.8, Code 2021, is amended to read as
 follows:
    425.8 Forms —— rules.
    1. The director of revenue shall prescribe the form
 for the making of a verified statement and designation of
 homestead, the form for the supporting affidavits required
 herein, and such other forms as may be necessary for the proper
 administration of this chapter subchapter. Whenever necessary,
 the department of revenue shall forward to the county auditors
 of the several counties in the state the prescribed sample
 forms, and the county auditors shall furnish blank forms
 prepared in accordance therewith with the assessment rolls,
 books, and supplies delivered to the assessors. The department
 of revenue shall prescribe and the county auditors shall
 provide on the forms for claiming the homestead credit a
 statement to the effect that the owner realizes that the owner
 must give written notice to the assessor when the owner changes
 the use of the property.
    2. The director of revenue may prescribe rules, not
 inconsistent with the provisions of this chapter subchapter,
 necessary to carry out and effectuate its purposes.
    Sec. 7. Section 425.9, subsection 1, Code 2021, is amended
 to read as follows:
    1. If the amount of credit apportioned to any homestead
 under the provisions of this chapter subchapter in any
 year shall exceed the total tax, exclusive of any special
 assessments levied against said homestead, then such excess
 shall be remitted by the county treasurer to the department of
 revenue to be redeposited in the homestead credit fund and be
 reallocated the following year by the department as provided in
 this chapter subchapter.
    Sec. 8. Section 425.10, Code 2021, is amended to read as
 follows:
    425.10 Reversal of allowed claim.
    In the event any claim is allowed, and subsequently reversed
 on appeal, any credit made thereunder shall be void, and the
 amount of such credit shall be charged against the property in
 question, and the director of revenue, the county auditor, and
 the county treasurer are authorized and directed to correct
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 their books and records accordingly. The amount of such
 erroneous credit, when collected, shall be returned by the
 county treasurer to the homestead credit fund to be reallocated
 the following year as provided in this chapter subchapter.
    Sec. 9. Section 425.11, subsection 1, unnumbered paragraph
 1, Code 2021, is amended to read as follows:
    For the purpose of this chapter subchapter and wherever used
 in this chapter subchapter:
    Sec. 10. Section 425.11, subsection 1, paragraph d,
 subparagraph (3), Code 2021, is amended to read as follows:
    (3) It must not embrace more than one dwelling house, but
 where a homestead has more than one dwelling house situated
 thereon, the credit provided for in this chapter subchapter
 shall apply to the home and buildings used by the owner, but
 shall not apply to any other dwelling house and buildings
 appurtenant.
    Sec. 11. Section 425.11, subsection 1, paragraph e, Code
 2021, is amended to read as follows:
    e. “Owner” means the person who holds the fee simple
 title to the homestead, and in addition shall mean the person
 occupying as a surviving spouse or the person occupying under
 a contract of purchase which contract has been recorded in
 the office of the county recorder of the county in which the
 property is located; or the person occupying the homestead
 under devise or by operation of the inheritance laws where
 the whole interest passes or where the divided interest is
 shared only by persons related or formerly related to each
 other by blood, marriage or adoption; or the person occupying
 the homestead is a shareholder of a family farm corporation
 that owns the property; or the person occupying the homestead
 under a deed which conveys a divided interest where the divided
 interest is shared only by persons related or formerly related
 to each other by blood, marriage or adoption; or where the
 person occupying the homestead holds a life estate with the
 reversion interest held by a nonprofit corporation organized
 under chapter 504, provided that the holder of the life estate
 is liable for and pays property tax on the homestead; or where
 the person occupying the homestead holds an interest in a
 horizontal property regime under chapter 499B, regardless
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 of whether the underlying land committed to the horizontal
 property regime is in fee or as a leasehold interest, provided
 that the holder of the interest in the horizontal property
 regime is liable for and pays property tax on the homestead;
 or where the person occupying the homestead is a member of a
 community land trust as defined in 42 U.S.C. §12773, regardless
 of whether the underlying land is in fee or as a leasehold
 interest, provided that the member of the community land
 trust is occupying the homestead and is liable for and pays
 property tax on the homestead. For the purpose of this chapter
 subchapter the word “owner” shall be construed to mean a bona
 fide owner and not one for the purpose only of availing the
 person of the benefits of this chapter subchapter. In order
 to qualify for the homestead tax credit, evidence of ownership
 shall be on file in the office of the clerk of the district
 court or recorded in the office of the county recorder at the
 time the owner files with the assessor a verified statement
 of the homestead claimed by the owner as provided in section
 425.2.
    Sec. 12. Section 425.12, Code 2021, is amended to read as
 follows:
    425.12 Indian land.
    Each forty acres of land, or fraction thereof, occupied by
 a member or members of the Sac and Fox Indians in Tama county,
 which land is held in trust by the secretary of the interior of
 the United States for said Indians, shall be given a homestead
 tax credit within the meaning and under the provisions of this
 chapter subchapter. Application for such homestead tax credit
 shall be made to the county auditor of Tama county and may be
 made by a representative of the tribal council.
    Sec. 13. Section 425.13, Code 2021, is amended to read as
 follows:
    425.13 Conspiracy to defraud.
    If any two or more persons conspire and confederate together
 with fraudulent intent to obtain the credit provided for under
 the terms of this chapter subchapter by making a false deed, or
 a false contract of purchase, they are guilty of a fraudulent
 practice.
    Sec. 14. Section 425.15, subsection 1, unnumbered paragraph
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 1, Code 2021, is amended to read as follows:
    If the owner of a homestead allowed a credit under this
 chapter subchapter is any of the following, the credit allowed
 on the homestead from the homestead credit fund shall be the
 entire amount of the tax levied on the homestead:
    Sec. 15. Section 425.16, Code 2021, is amended to read as
 follows:
    425.16 Additional tax credit.
    1. In addition to the homestead tax credit allowed under
 section 425.1, subsections 1 through 4, persons who own or rent
 their homesteads and who meet the qualifications provided in
 this subchapter are eligible for an extraordinary a property
 tax credit or property taxes due or reimbursement of rent
 constituting property taxes paid.
    2. a. The property tax credit for property taxes due under
 this subchapter shall be administered by the department of
 revenue, the assessor, and other county officials as provided
 in this subchapter.
    b. The reimbursement of rent constituting property taxes
 paid under this subchapter shall be administered by the
 department of human services as provided in this subchapter.
    Sec. 16. Section 425.17, subsection 3, Code 2021, is amended
 to read as follows:
    3. “Gross rent” means rental paid at arm’s length for the
 right of occupancy of a homestead or manufactured or mobile
 home, including rent for space occupied by a manufactured
 or mobile home not to exceed one acre. If the department
 of revenue human services determines that the landlord and
 tenant have not dealt with each other at arm’s length, and
 the department of revenue human services is satisfied that
 the gross rent charged was excessive, the department of human
 services shall adjust the gross rent to a reasonable amount as
 determined by the department of human services.
    Sec. 17. Section 425.18, Code 2021, is amended to read as
 follows:
    425.18 Right to file a claim.
    The right to file a claim for reimbursement or credit under
 this subchapter may be exercised by the claimant or on behalf
 of a claimant by the claimant’s legal guardian, spouse, or
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 attorney, or by the executor or administrator of the claimant’s
 estate. If a claimant dies after having filed a claim for
 reimbursement for rent constituting property taxes paid, the
 amount of the reimbursement may be paid to another member of
 the household as determined by the department of revenue of
 human services. If the claimant was the only member of the
 household, the reimbursement may be paid to the claimant’s
 executor or administrator, but if neither is appointed and
 qualified within one year from the date of the filing of
 the claim, the reimbursement shall escheat to the state. If
 a claimant dies after having filed a claim for credit for
 property taxes due, the amount of credit shall be paid as if
 the claimant had not died.
    Sec. 18. Section 425.19, Code 2021, is amended to read as
 follows:
    425.19 Claim and credit or reimbursement.
    Subject to the limitations provided in this subchapter, a
 claimant may annually claim a credit for property taxes due
 during the fiscal year next following the base year or claim
 a reimbursement for rent constituting property taxes paid in
 the base year. The amount of the credit for property taxes due
 for a homestead shall be paid on June 15 of each year from the
 elderly and disabled property tax credit fund under section
 425.39, subsection 1, by the director of revenue to the county
 treasurer who shall credit the money received against the
 amount of the property taxes due and payable on the homestead
 of the claimant and the amount of the reimbursement for rent
 constituting property taxes paid shall be paid by the director
 of human services to the claimant from the state general
 reimbursement fund under section 425.39, subsection 2, on or
 before December 31 of each year.
    Sec. 19. Section 425.20, subsections 1 and 3, Code 2021, are
 amended to read as follows:
    1. A claim for reimbursement for rent constituting property
 taxes paid shall not be paid or allowed, unless the claim is
 filed with and in the possession of the department of revenue
 human services on or before June 1 of the year following the
 base year.
    3. In case of sickness, absence, or other disability of
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 the claimant or if, in the judgment of the director of revenue
 or the director of human services, as applicable, good cause
 exists and the claimant requests an extension, the director
 of human services may extend the time for filing a claim for
 reimbursement or and the director of revenue may extend the
 time for filing a claim for credit. However, any further
 time granted shal