1. In addition to the homestead tax credit allowed under section 425.1, subsections 1 through 4, persons who own or rent their homesteads and who meet the qualifications provided in this subchapter are eligible for a property tax credit for property taxes due or reimbursement of rent constituting property taxes paid.

Terms Used In Iowa Code 425.16

  • Homestead: means the dwelling owned or rented and actually used as a home by the claimant during the period specified in subsection 2, and so much of the land surrounding it including one or more contiguous lots or tracts of land, as is reasonably necessary for use of the dwelling as a home, and may consist of a part of a multidwelling or multipurpose building and a part of the land upon which it is built. See Iowa Code 425.17
  • property: includes personal and real property. See Iowa Code 4.1
  • Property taxes due: means property taxes including any special assessments, but exclusive of delinquent interest and charges for services, due on a claimant's homestead in this state, but includes only property taxes for which the claimant is liable and which will actually be paid by the claimant. See Iowa Code 425.17
  • Rent constituting property taxes paid: means twenty-three percent of the gross rent actually paid in cash or its equivalent during the base year by the claimant or the claimant's household solely for the right of occupancy of their homestead in the base year, and which rent constitutes the basis, in the succeeding year, of a claim for reimbursement under this subchapter by the claimant. See Iowa Code 425.17
 2. a. The property tax credit for property taxes due under this subchapter shall be administered by the department of revenue, the assessor, and other county officials as provided in this subchapter.

 b. The reimbursement of rent constituting property taxes paid under this subchapter shall be administered by the department of human services as provided in this subchapter.