Elderly and Disabled Homeowner and Renters Property Tax Credit

Iowa

2017

Benefit Varies with Income

Circuit Breaker

The benefit is based on 6 income brackets and ranges from 100% of property taxes paid for income below $11,634 to 25% of property taxes paid for income over $19,847 but less than $22,584. 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.

Credit to the property tax bill

Residential

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 multi dwelling 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.

Age

Disability

Homeowner

Income Ceiling

Renter

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 2016 household income must be less than $22,584 to qualify in 2017. 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 government is unable to exercise an option

No local option regarding program features

State reimburses all of the local government 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.

IA101_RR17