Bill Summary – FastDemocracy

Senate File 263 - Introduced
                                  SENATE FILE 263
                                  BY R. SMITH
                            A BILL FOR
An Act relating to the filing date and approval for disabled
  veteran homestead property tax credits and including
  effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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    Section 1. Section 425.1, subsection 4, Code 2021, is
 amended to read as follows:
    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 certified and amounts given to the several taxing
 districts shall be adjusted, if necessary, as the result of
 claims filed and approved under section 425.2, subsection 1,
 paragraph “c”, following the date for certification. 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. Each county treasurer shall show
 on each tax receipt the amount of credit received from the
 homestead credit fund.
    Sec. 2. Section 425.2, subsection 1, Code 2021, is amended
 to read as follows:
    1. a. A person who wishes to qualify for the credit allowed
 under this chapter 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.
    b. The claim shall be filed not later than July 1 of the
 year for which the person is claiming the credit. A claim
 filed after July 1 of the year for which the person is claiming
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 the credit shall be considered as a claim filed for the
 following year.
    c. (1) For a person filing a claim under this subchapter
 who qualifies for the credit amount provided under section
 425.15 and who is approved under subparagraph (2), the credit
 shall be applicable immediately to property tax payments due
 and payable beginning with the fiscal year that the claim
 was filed and for which the person claiming the credit is
 responsible for payment on or after the date of filing.
    (2) In order to receive the credit for property taxes due
 and payable in the fiscal year that the claim was filed, a
 claimant satisfying the requirements of subparagraph (1) shall
 file a petition, duly sworn to, with the board of supervisors,
 requesting approval of the credit for that fiscal year. The
 board of supervisors may, if in the board’s judgment it is for
 the best interests of the public and the claimant, approve the
 request.
    Sec. 3. Section 425.3, subsection 3, Code 2021, is amended
 to read as follows:
    3. Not later than July 6 of each year, or for claims filed
 under section 425.2, subsection 1, paragraph “c”, as soon as
 practicable following the date of approval, the assessor shall
 remit the statements and designation of homesteads to the
 county auditor with the assessor’s recommendation for allowance
 or disallowance. If the assessor recommends disallowance
 of a claim, the assessor shall submit the reasons for the
 recommendation, in writing, to the county auditor.
    Sec. 4. Section 425.4, Code 2021, is amended to read as
 follows:
    425.4 Certification to treasurer.
    All claims which have been allowed by the board of
 supervisors shall be certified on or before August 1, in each
 year, or for claims filed under section 425.2, subsection
 1, paragraph “c”, as soon as practicable following the date
 of approval, by the county auditor to the county treasurer,
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  which certificates shall list the total amount of dollars,
  listed by taxing district in the county, due for homestead
  tax credits claimed and allowed. The county treasurer shall
  forthwith certify to the department of revenue the total amount
  of dollars, listed by taxing district in the county, due for
  homestead tax credits claimed and allowed.
     Sec. 5. EFFECTIVE DATE. This Act, being deemed of immediate
  importance, takes effect upon enactment.
                            EXPLANATION
         The inclusion of this explanation does not constitute agreement with
          the explanation’s substance by the members of the general assembly.
    Current Code section 425.2 provides that a person who wishes
 to receive the homestead property tax credit must file the
 claim with the assessor not later than July 1 of the assessment
 year for which the person is claiming the credit and a claim
 filed after July 1 of the assessment year for which the person
 is claiming the credit shall be considered as a claim filed
 for the following year. Consequently, for example, a claim
 filed on July 1, 2021, would be allowed for the assessment year
 beginning January 1, 2021, for property taxes calculated using
 valuations from that assessment year that are due and payable
 during the fiscal year beginning July 1, 2022, and ending June
 30, 2023.
    This bill modifies the timeline for which a homestead credit
 is allowed if the person claiming the credit is eligible for
 the disabled veteran homestead credit amount under Code section
 425.15. For such a claimant, if approved by the board of
 supervisors, the credit shall be applicable immediately to
 property tax payments due and payable beginning with the fiscal
 year that the claim was filed and for which the person claiming
 the credit is responsible for payment on or after the date of
 filing. For example, a claim filed on July 1, 2021, would be
 allowed for property taxes that are due and payable during the
 fiscal year beginning July 1, 2021, and ending June 30, 2022.
    The bill takes effect upon enactment.
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Statutes affected: 
Introduced: 425.1, 425.3, 425.2