Elderly and Disabled Homeowner and Renters Property Tax Credit

State

Iowa

Year

2015

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

The benefit is based on 6 income brackets and ranges from 100% of property taxes paid for income below $11,339 to 25% of property taxes paid for income over $19,343 but less than $22,011. For renters, property taxes are calculated as 23% of gross rent paid by claimant or claimant's household. The maximum benefit is based on actual taxes not to exceed $1,000. Renters receive a direct payment of benefit. If the general homestead credit is larger than this credit, than there is no credit but no refund shall be required.

How is Benefit Disbursed

Credit to the property tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only homesteads are eligible. “Homestead” means the dwelling, owned or rented, and used as a home by the claimant along with land surrounding it. This may include one or more contiguous lots or tracts of land, as is reasonably necessary for use of the dwelling as a home. A homestead may consist of a part of a multidwelling or multipurpose building and a part of the land upon which it is built. It does not include personal property except that a manufactured or mobile home may be a homestead.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Renter

Description of Eligibility Criteria

Applicants must be at least 65 years of age or 100% disabled. Claimants must have a household income, defined as the sum of Iowa net income. The 2014 household income must be less than $22,011 to qualify in 2015. Beginning in 1995 a person who has attained the age of 23 or a head of household and was not claimed as a dependent on any other person's tax return for the base year is eligible by statutes for this program if they meet income requirements. However, the state has never provided funding for this portion of the program.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The amount of the credit for property taxes due for a homestead shall be paid on 15 June of each year by the director 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. Statutes require that funds are annually appropriated from the general fund of the state to the elderly and disabled property tax credit and reimbursement fund, from funds not otherwise appropriated, an amount sufficient to implement this benefit. If a state appropriation is not sufficient to fully fund the credit or exemption, the political subdivision shall be required to extend to the taxpayer only that portion of the credit or exemption estimated by the department of revenue to be funded by the state appropriation.

Record ID

IA101_RR15

Footnotes

Income levels are adjusted annually by the gross domestic product price deflator computed for the 2nd quarter of the calendar year by the Bureau of Economic Analysis of the United States Department of Commerce. Totally disabled means the inability to engage in any substantial gainful employment by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or is reasonably expected to last for a continuous period of not less than 12 months. A person who is eligible to file a claim for credit for property taxes due with a household income in the lowest bracket who has an unpaid special assessment levied against the homestead may file a claim for a special assessment credit with the county treasurer. The claim filed by the claimant constitutes a claim for credit of an amount equal to the actual amount due upon the unpaid special assessment, plus interest, payable during the fiscal year for which the claim is filed against the homestead of the claimant.

Sources

Iowa Code § 25B.7;
Iowa Code § 422.4;
Iowa Code § 425.17;
Iowa Code § 425.19;
Iowa Code § 425.23;
Iowa Code § 425.24;
Iowa Code § 425.29;
Iowa Code § 425.40 (in effect for 2015).
2015 Property Tax Credit Claim Form (July 2014) Iowa Department of Revenue [https://tax.iowa.gov/sites/files/idr/forms1/IAPropertyTaxCreditClaim%2854001%2915.pdf Accessed on 05/19/2016] View Archived Source

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