Iowa law provides for a number of credits and
exemptions, including Homestead Credit and Military Exemption and provides that
it is the property owner's responsibility to apply for these. If the property
you were occupying as a homestead is sold, or if you cease to use the property
as a homestead, you are required to report this to the assessor in whose
jurisdiction the property is located.
Homestead Tax Credit
Any person who owns a dwelling and the land it sits on and who occupies said
dwelling may qualify for a homestead tax credit. To be eligible, a homeowner
must occupy the homestead any six months out of the year, but must reside there
on July 1 and must claim Iowa as his residence for income tax purposes. This
exemption is a reduction of the taxable value of the property amounting to a
maximum $4,850 or the amount which does not allow the taxable value to be less
than zero. Application is to be made on or before July 1 of the claim year.
Disabled veterans are allowed to claim a homestead credit that would be equal to
the entire amount of taxes levied on the homestead property. The exemption is
not allowed if the combined income of the veteran and their spouse, if any,
exceeds $35,000 in the prior income tax year. Income means taxable income for
federal income tax purposes plus income from any political subdivision exempt
from federal income tax. (refer to code of Iowa, Chapter 425)
Military Tax Exemption
To file for the exemption, the property owner must be a resident of Iowa and
meet one of the following qualifications;
• Honorably discharged veteran who served in eligible service period.
• Honorably discharged veteran who served for a minimum of 18 months, or for
fewer than 18 months because of a service related injury.
• Former member, or member who is currently serving, of Reserve Forces or Iowa
National Guard who has served at least 20 years.
• Member of Reserve Forces or Iowa National Guard who was activated for Federal
duty, not including training for a minimum or 90 days.
• Former member of the Armed Forces whose enlistment would have occurred during
the Korean Conflict but chose to serve 5 years in the Reserve Forces.
New applications must be made with the Assessor on or before July 1 of the year
the exemption is first claimed. As with the Homestead Tax Credit, the exemption
remains in effect until the property owner is no longer eligible. This exemption
is worth the taxes calculated on $2,778 for WWI veterans and $1,852 for all
others after that time. (Refer to Code of Iowa Chapter 427)
It is the responsibility of each person who qualifies for and wishes to receive
a military exemption, to make application with the county assessor and also have
their discharge papers (DD214) recorded in the appropriate county. Application
is to be made on or before July 1 of the claim year.
Family Farm Tax Credit
This credit is available to all farm operators who own and operate farm land, or
farm land owned by a family member such as parents, children, grandparents,
grandchildren, brother, sister, aunt, uncle, niece, nephew. Cousins do not
qualify.
Family Farm One-Time Filing
If a claim for the family farm credit is filed by November 1, 2001, or
thereafter, and approved, further filing is not required provided the claimant
owns the property on July 1 of subsequent years and the designated person
actively engaged in farming the property remains the same.
If the ownership changes, the new owner must re-file for the credit and if the
"designated person" changes, the owner must re-file for the credit.
The owner must notify the Assessor in writing of a change in the "designated
person". Failure to do so will result in a penalty.
Contact the Assessor's office for more information on the complexities of this
law. See Code of Iowa Chapter 425A.
CLICK HERE for a list of
several other credits/exemptions. Filing is required on them as provided by Iowa
law. |
