Homestead Tax
Credit
Any property owner in the State
of Iowa who lives in the property can receive 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. This exemption is a reduction of the taxable value of their
property amounting to a maximum $4,850 or the amount which
does not allow the taxable value to be less than
zero.
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 $25,000 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. See Code of Iowa Chapter
425.
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Military Tax
Exemption Any property
owner who has been involved in full-time active duty
during a war or conflict, has been honorably discharged
and lives in Iowa qualifies for a military exemption.
The applicable times of either a war or conflict are
spelled out in Section 427.3 of the Code of Iowa. Though
the wars date back to 1846, the ones generally in use
now are for World War I through the Vietnam conflict.
The amount of the exemption in taxable value for the
most often used exemptions is $2,778 for WWI and $1,852
for any others after that.
It is the responsibility of each person
who qualifies for and wishes to receive a military
exemption, to make application with the city or county
assessor and also have their discharge papers (DD214)
recorded in the appropriate county. Application is to be
made prior to July 1 of the claim year. National guardsmen and reserves are not eligible
for the exemption is their only active duty was for
training purposes. On some rare occasions there were
guardsmen and reserves who were called into active duty
other that training. In these cases the person is
eligible for the exemption. See Code of Iowa Chapter
426A.
|
WAR |
SERVICE MUST HAVE
BEEN
BETWEEN FOLLOWING
DATES |
AMOUNT OF
EXEMPTION |
| World War I |
Declared April 6, 1917
Terminated November 11, 1918 |
$2,778.00 |
| World War II |
Declared December 7, 1941
Terminated December 31, 1946 |
$1,852.00 |
| Army of Occupation in Germany
|
November 12, 1918 to July 11,
1923 |
$1,852.00 |
| American Expeditionary Forces
in Siberia |
November 12, 1918 to April 30,
1920 |
$1,852.00 |
| Second Nicaraguan Campaign w/
the Navy or Marines in Nicaragua |
August 27, 1926 to January 2,
1933 |
$1,852.00 |
| Marines & several war ships
ordered
to Nicaragua |
January 6, 1927 (withdrawn 1933) |
$1,852.00 |
| Second Haitian Suppression's of
Insurrections |
1919 - 1920 |
$1,852.00 |
| Navy & Marine Operations in
China |
Marines landed August 11, 1937
Terminated occupation July 1939 |
$1,852.00 |
| Yangtze Service w/ Navy &
Marines
in Shanghai or in Yangtze Valley |
1926 - 1927 and 1930 - 1932 |
$1,852.00 |
| Korean Conflict |
June 25, 1950 to January 31, 1955 |
$1,852.00 |
| Vietnam Conflict
(dates changed in
1999)----------- |
February 28, 1961 to May 7, 1975 |
$1,852.00 |
| Persian Gulf War |
August 2, 1990 to Present |
$1,852.00 |
| Lebanon/Granada |
August 24, 19882 to July 31, 1984 |
$1,852.00 |
| Panama |
December 20, 1989 to January 31,
1990 |
$1,852.00 |
| Women's Air Corp. during WWII |
December 7, 1941
to
December 31, 1946 |
$1,852.00 |
| Former members of the United States
reserves and Iowa National Guard who served at
least 20 years and were honorably discharged are
eligible for the exemption. The January 28, 1973
date is no longer of any significance for
eligibility purposes.
Current members of the United States reserves
and Iowa National Guard who have served at least
20 years are eligible for the exemption.
Former members of the armed forces of the
United States who performed at least 3 years of
military service, regardless of the time period,
and who were honorably discharged are now eligible
for the exemption. |
$1,852.00 |
| TO GET COPY OF DD214: |
National Personnel Records Center,
GSA
(Military Personnel Records)
9700 Page Blvd.
St. Louis, MO
63132 |
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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
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Forrest & Fruit
Tree
Any person who establishes a forest or
fruit-tree reservation as provided in Iowa Code Chapter 427C
shall be entitled to the tax exemption as provided by
law.
Reservations
On any tract of land in the state of Iowa, the
owner or owners may select a permanent forest reservation or
reservations, each not less than two acres in continuous area,
or a fruit-tree reservation or reservations, not less than one
nor more than ten acres in total area, or both, and upon
compliance with the provisions of this chapter, such owner or
owners shall be entitled to the benefits provided by
law.
Forest reservation
A forest reservation shall contain not less
than two hundred growing forest trees on each acre. If the
area selected is a forest containing the required number of
growing forest trees, it shall be accepted as a forest
reservation under this chapter provided application is made or
on file on or before April 15 of the exemption year. If any
buildings are standing on an area selected as a forest
reservation under this section or a fruit-tree reservation
under section 427C.7 one acre of that area shall be excluded
from the tax exemption. However, the exclusion of that acre
shall not affect the area's meeting the acreage requirement of
section 427C.2.
Removal of trees.
Not more than one-fifth of the total number of
trees in any forest reservation may be removed in any one
year, excepting in cases where the trees die
naturally.
Forest trees
The ash, black cherry, black walnut,
butternut, catalpa, coffee tree, the elms, hackberry, the
hickories, honey locust, Norway and Carolina poplars,
mulberry, the oaks, sugar maple, cottonwood, soft maple, osage
orange, basswood, black locust, European larch and other
coniferous trees, and all other forest trees introduced into
the state for experimental purposes, shall be considered
forest trees within the meaning of this chapter. In forest
reservations which are artificial groves, the willows, box
elder, and other poplars shall be included among forest trees
for the purposes of this chapter when they are used as
protecting borders not exceeding two rows in width around a
forest reservation, or when they are used as nurse trees for
forest trees in such forest reservation, the number of such
nurse trees not to exceed one hundred on each acre; provided
that only box elder shall be used as nurse
trees.
Groves
The trees of a forest reservation shall be in
groves not less than four rods wide except when the trees are
growing or are planted in or along a gully or ditch to control
erosion in which case any width will qualify provided the area
meets the size requirement of two acres.
Fruit-tree
reservation-duration of exemption
A fruit-tree reservation shall contain on each
acre, at least forty apple trees, or seventy other fruit
trees, growing under proper care and annually pruned and
sprayed. A reservation may be claimed as a fruit-tree
reservation, under this chapter, for a period of eight years
after planting provided application is made or on file on or
before April 15 of the exemption year.
Fruit trees
The cultivated varieties of apples, crabs,
plums, cherries, peaches, and pears shall be considered fruit
trees within the meaning of this chapter.
Replacing trees
When any tree or trees on a fruit-tree or
forest reservation shall be removed or die, the owner or
owners of such reservation shall, within one year, plant and
care for other fruit or forest trees, in order that the number
of such trees may not fall below that required by this
chapter.
Restraint of livestock and limitation on
use
Cattle, horses, mules, sheep, goats,
ostriches, rheas, emus, and swine shall not be permitted upon
a fruit-tree or forest reservation. Fruit-tree and forest
reservations shall not be used for economic gain other than
the gain from raising fruit or forest trees.
Penalty
If the owner or owners of a fruit-tree or
forest reservation violate any provision of this chapter
within the two years preceding the making of an assessment,
the assessor shall not list any tract belonging to such owner
or owners, as a reservation within the meaning of this
chapter, for the ensuing two years.
Application-inspection-continuation of
exemption-recapture of tax.
It shall be the duty of the assessor to secure
the facts relative to fruit-tree and forest reservations by
taking the sworn statement, or affirmation, of the owner or
owners making application under this chapter; and to make
special report to the county auditor of all reservations made
in the county under the provisions of this chapter.
The board of supervisors shall designate the
county conservation board or the assessor who shall inspect
the area for which an application is filed for a fruit-tree or
forest reservation tax exemption before the application is
accepted. Use of aerial photographs may be substituted for
on-site inspection when appropriate. The application can only
be accepted if it meets the criteria established by the
natural resource commission to be a fruit-tree or forest
reservation. Once the application has been accepted, the area
shall continue to receive the tax exemption during each year
in which the area is maintained as a fruit-tree or forest
reservation without the owner having to refile. If the
property is sold or transferred, the seller shall notify the
buyer that all, or part of, the property is in fruit-tree or
forest reservation and subject to the recapture tax provisions
of this section. The tax exemption shall continue to be
granted for the remainder of the eight-year period for
fruit-tree reservation and for the following years for forest
reservation or until the property no longer qualifies as a
fruit-tree or forest reservation. The area may be inspected
each year by the county conservation board or the assessor to
determine if the area is maintained as a fruit-tree or forest
reservation. If the area is not maintained or is used for
economic gain other than as a fruit-tree reservation during
any year of the eight-year exemption period and any year of
the following five years or as a forest reservation during any
year for which the exemption is granted and any of the five
years following those exemption years, the assessor shall
assess the property for taxation at its fair market value as
of January 1 of that year and in addition the area shall be
subject to a recapture tax. However, the area shall not be
subject to the recapture tax if the owner, including one
possessing under a contract of sale, and the owner's direct
antecedents or descendants have owned the area for more than
ten years. The tax shall be computed by multiplying the
consolidated levy for each of those years, if any, of the five
preceding years for which the area received the exemption for
fruit-tree or forest reservation times the assessed value of
the area that would have been taxed but for the tax exemption.
This tax shall be entered against the property on the tax list
for the current year and shall constitute a lien against the
property in the same manner as a lien for property taxes. The
tax when collected shall be apportioned in the manner provided
for the apportionment of the property taxes for the applicable
tax year.
Report to department of natural
resources.
The county assessor shall keep a record of all
forest and fruit-tree reservations in the county and submit a
report of the reservations to the department of natural
resources not later than June 15 of each year. See Code of
Iowa Chapter 427C
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Pollution Control
Exemption
Pollution control and recycling.
Pollution-control or recycling property as defined in this
subsection shall be exempt from taxation to the extent
provided in this subsection, upon compliance with the
provisions of this subsection.
This exemption shall apply to new
installations of pollution-control or recycling property
beginning on January 1 after the construction or installation
of the property is completed. This exemption shall apply
beginning on January 1, 1975, to existing pollution-control
property if its construction or installation was completed
after September 23, 1970, and this exemption shall apply
beginning January 1, 1994, to recycling property.
This exemption shall be limited to the market
value, as defined in section 441.21, of the pollution-control
or recycling property. If the pollution-control or recycling
property is assessed with other property as a unit, this
exemption shall be limited to the net market value added by
the pollution-control or recycling property, determined as of
the assessment date.
Application for this exemption shall be filed
with the assessing authority not later than the first of
February of the first year for which the exemption is
requested, on forms provided by the department of revenue and
finance. The application shall describe and locate the
specific pollution-control or recycling property to be
exempted.
The application for a specific
pollution-control or recycling property shall be accompanied
by a certificate of the administrator of the environmental
protection division of the department of natural resources
certifying that the primary use of the pollution-control
property is to control or abate pollution of any air or water
of this state or to enhance the quality of any air or water of
this state or, if the property is recycling property, that the
primary use of the property is for recycling.
A taxpayer may seek judicial review of a
determination of the administrator of the environmental
protection division or, on appeal, of the environmental
protection commission in accordance with the provisions of
chapter 17A.
The environmental protection commission of the
department of natural resources shall adopt rules relating to
certification under this subsection and information to be
submitted for evaluating pollution-control or recycling
property for which a certificate is requested. The department
of revenue and finance shall adopt any rules necessary to
implement this subsection, including rules on identification
and valuation of pollution-control or recycling property. All
rules adopted shall be subject to the provisions of chapter
17A.
For the purposes of this subsection
"pollution-control property" means personal property or
improvements to real property, or any portion thereof, used
primarily to control or abate pollution of any air or water of
this state or used primarily to enhance the quality of any air
or water of this state and "recycling property" means personal
property or improvements to real property or any portion of
the property, used primarily in the manufacturing process and
resulting directly in the conversion of waste plastic,
wastepaper products, or waste paperboard, into new raw
materials or products composed primarily of recycled material.
In the event such property shall also serve other purposes or
uses of productive benefit to the owner of the property, only
such portion of the assessed valuation thereof as may
reasonably be calculated to be necessary for and devoted to
the control or abatement of pollution, to the enhancement of
the quality of the air or water of this state, or for
recycling shall be exempt from taxation under this
subsection.
For the purposes of this subsection
"pollution" means air pollution as defined in section 455B.131
or water pollution as defined in section 455B.171. "Water of
the state" means the water of the state as defined in section
455B.171. "Enhance the quality" means to diminish the level of
pollutants below the air or water quality standards
established by the environmental protection commission of the
department of natural resources. See Code of Iowa
Chapter 427
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Urban
Revitalization/Renewal Tax
Exemption
The governing body of a city may, by
ordinance, designate an area of the city or the governing
body of a county may, by ordinance, designate an area of the
county outside the boundaries of a city, as a revitalization
area, if that area meets certain criteria: See Code
of Iowa Chapter 404
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Dates to Remember
- January 1 - Effective date of current assessment.
- February 1 - Filing date for the following
credits & exemptions:
Barn & One Room School;
Exempt Property - Religious, Literary & Charitable;
Forest & Fruit Tree Reservation; Historic property;
Impoundment Structure; Industrial Property Tax; Low Rent
Housing; Mobile Home Park Shelter; Natural Conservation or
Wildlife Areas; Native Prairie; Pollution Control;
Recycling; Speculative Shell Building; Urban Revitalization;
Wetlands; Wildlife Habitat.
- April 16 thru May 5 inclusive - Protest of
assessment period for filing with the local Board of Review.
- May 1 thru adjournment - Board of Review meets
each year.
- July 1 - Filing deadline for new Homestead Credit
and Military Exemption applications. Owners must own
and occupy their property on or before July 1 of the year
for which the credit is claimed.
- October 16 thru October 25 inclusive - Protest of
assessment period for filing with the level Board of Review
on those properties affected by changes in value as a result
of the Director or Revenue Equalization Orders (odd numbered
years).
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