2023 Iowa Code › Title X - FINANCIAL RESOURCES › Chapter 425 - HOMESTEAD TAX CREDITS AND REIMBURSEMENT › Section 425.23 - Schedule for claims for credit or reimbursement.

425.23 Schedule for claims for credit or reimbursement.
The amount of any claim for credit or reimbursement filed under this subchapter shall be determined as provided in this section.
1. a. The tentative credit or reimbursement for a claimant described in section 425.17, subsection 2, paragraph “a”, subparagraph (1), shall be determined in accordance with the following schedule:
Percent of property taxes
due or rent constituting
property taxes paid
If the household allowed as a credit or
income is: reimbursement:
$ 0 — 8,499.99 ................................ 100%
8,500 — 9,499.99 ................................ 85
9,500 — 10,499.99 ................................ 70
10,500 — 12,499.99 ................................ 50
12,500 — 14,499.99 ................................ 35
14,500 — 16,499.99 ................................ 25
b. If moneys have been appropriated to the fund created in section 425.40, the tentative credit or reimbursement for a claimant described in section 425.17, subsection 2, paragraph “a”, subparagraph (2), shall be determined as follows:
(1) If the amount appropriated under section 425.40 plus any supplemental appropriation made for a fiscal year for purposes of this lettered paragraph is at least twenty-seven million dollars, the tentative credit or reimbursement shall be determined in accordance with the following schedule:
Percent of property taxes
due or rent constituting
property taxes paid
If the household allowed as a credit or
income is: reimbursement:
$ 0 — 8,499.99 ................................ 100%
8,500 — 9,499.99 ................................ 85
9,500 — 10,499.99 ................................ 70
10,500 — 12,499.99 ................................ 50
12,500 — 14,499.99 ................................ 35
14,500 — 16,499.99 ................................ 25
(2) If the amount appropriated under section 425.40 plus any supplemental appropriation made for a fiscal year for purposes of this lettered paragraph is less than twenty-seven million dollars the tentative credit or reimbursement shall be determined in accordance with the following schedule:
Percent of property taxes
due or rent constituting
property taxes paid
If the household allowed as a credit or
income is: reimbursement:
$ 0 — 8,499.99 ................................ 50%
8,500 — 9,499.99 ................................ 42
9,500 — 10,499.99 ................................ 35
10,500 — 12,499.99 ................................ 25
12,500 — 14,499.99 ................................ 17
14,500 — 16,499.99 ................................ 12
c. The tentative credit for a claimant described in section 425.17, subsection 2, paragraph “a”, subparagraph (3), shall be the greater of the following:
(1) The amount of the credit under the schedule specified in paragraph “a” of this subsection as if the claimant was a claimant as defined in section 425.17, subsection 2, paragraph “a”, subparagraph (1), filing for a credit under paragraph “a” of this subsection.
(2) The difference between the actual amount of property taxes due on the homestead during the fiscal year next following the base year minus the actual amount of property taxes due on the homestead during the first fiscal year for which the claimant filed a claim for a credit calculated under this paragraph “c” and for which the property taxes due on the homestead were calculated on an assessed valuation that was not a partial assessment and if the claimant has filed for the credit calculated under this paragraph “c” for each of the subsequent fiscal years after the first credit claimed.
2. The actual credit for property taxes due shall be determined by subtracting from the tentative credit the amount of the homestead credit under section 425.1 which is allowed as a credit against property taxes due in the fiscal year next following the base year by the claimant or any person of the claimant’s household. If the subtraction produces a negative amount, there shall be no credit but no refund shall be required. The actual reimbursement for rent constituting property taxes paid shall be equal to the tentative reimbursement.
3. a. A person who is eligible to file a claim for credit for property taxes due and who has a household income of eight thousand five hundred dollars or less and who has an unpaid special assessment levied against the homestead may file a claim for a special assessment credit with the county treasurer. The department of revenue shall provide to the respective treasurers the forms necessary for the administration of this subsection. The claim shall be filed not later than September 30 of each year. Upon the filing of the claim, interest for late payment shall not accrue against the amount of the unpaid special assessment due and payable. 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. However, where the claimant is an individual described in section 425.17, subsection 2, paragraph “a”, subparagraph (2), and the tentative credit is determined according to the schedule in subsection 1, paragraph “b”, subparagraph (2), of this section, the claim filed constitutes a claim for credit of an amount equal to one-half of the actual amount due and payable during the fiscal year. The treasurer shall certify to the director of revenue not later than October 15 of each year the total amount of dollars due for claims allowed. The amount of reimbursement due each county shall be certified by the director of revenue and paid by the director of the department of administrative services by November 15 of each year, drawn upon warrants payable to the respective treasurer. There is appropriated annually from the general fund of the state to the department of revenue an amount sufficient to carry out the provisions of this subsection. The treasurer shall credit any moneys received from the department of revenue against the amount of the unpaid special assessment due and payable on the homestead of the claimant.
b. For purposes of this subsection, in computing household income, a person with a total disability shall deduct all medical and necessary care expenses paid during the twelve-month income tax accounting periods used in computing household income which are attributable to the person’s total disability. “Medical and necessary care expenses” are those used in computing the federal income tax deduction under section 213 of the Internal Revenue Code as defined in section 422.3.
4. a. For the base year beginning in the 1999 calendar year and for each subsequent base year, the dollar amounts set forth in subsection 1, paragraphs “a” and “b”, and subsection 3 shall be multiplied by the cumulative adjustment factor for that base year. “Cumulative adjustment factor” means the product of the annual adjustment factor for the 1998 base year and all annual adjustment factors for subsequent base years. The cumulative adjustment factor applies to the base year beginning in the calendar year for which the latest annual adjustment factor has been determined.
b. The annual adjustment factor for the 1998 base year is one hundred percent. For each subsequent base year, the annual adjustment factor equals the annual inflation factor for the calendar year, in which the base year begins, as computed in section 422.4 for purposes of the individual income tax.
c. The cumulative adjustment factor shall be determined annually by the department of revenue.
[C71, 73, §425.1(5); C75, 77, 79, 81, §425.23]
83 Acts, ch 172, §5; 83 Acts, ch 189, §3, 5, 6; 84 Acts, ch 1305, §35; 88 Acts, ch 1139, §4; 90 Acts, ch 1250, §8, 9; 91 Acts, ch 267, §524; 92 Acts, ch 1016, §13, 42
; 92 Acts, 2nd Ex, ch 1001, §221 – 223, 225
; 93 Acts, ch 180, §5, 6, 15, 16, 22, 23; 96 Acts, ch 1129, §93; 96 Acts, ch 1167, §4, 8; 98 Acts, ch 1177, §12 – 14, 16; 2003 Acts, ch 145, §286; 2004 Acts, ch 1101, §49; 2011 Acts, ch 25, §131 – 133; 2018 Acts, ch 1041, §127; 2021 Acts, ch 41, §20, 21, 36; 2021 Acts, ch 177, §126 – 128, 131
Referred to in §25B.7, 425.24, 425.39, 427.9, 435.22
2021 amendment to subsection 1, paragraph a, unnumbered paragraph 1 applies to claims under chapter 425, subchapter II, filed on or after January 1, 2022;
2021 Acts, ch 177, §131
Subsection 1, paragraph c applies to claims under chapter 425, subchapter II, filed on or after January 1, 2022; 2021 Acts, ch 177, §131
2021 amendment to subsection 4, paragraph a applies to claims under chapter 425, subchapter II, filed on or after January 1, 2022; 2021 Acts, ch 177, §131