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.

Terms Used In Iowa Code 425.23

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Base year: means the calendar year last ending before the claim is filed. See Iowa Code 425.17
  • Claimant: means any of the following:
     (1) A person filing a claim for credit under this subchapter who has attained the age of sixty-five years but who has not attained the age of seventy years on or before December 31 of the base year, a person filing a claim for credit or reimbursement under this subchapter who is totally disabled and was totally disabled on or before December 31 of the base year, or a person filing a claim for reimbursement under this subchapter who has attained the age of sixty-five years on or before December 31 of the base year and who is domiciled in this state at the time the claim is filed or at the time of the person's death in the case of a claim filed by the executor or administrator of the claimant's estate. See Iowa Code 425.17
  • Director: means the director of the department of revenue. See Iowa Code 453A.42
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
  • 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
  • Household: means a claimant and the claimant's spouse if living with the claimant at any time during the base year. See Iowa Code 425.17
  • Household income: means all income of the claimant and the claimant's spouse in a household and actual monetary contributions received from any other person living with the claimant during their respective twelve-month income tax accounting periods ending with or during the base year. See Iowa Code 425.17
  • Income: means the sum of Iowa net income as defined in section 422. See Iowa Code 425.17
  • Person: means any individual, firm, association, partnership, joint stock company, joint adventure, corporation, trustee, agency, or receiver, or any legal representative of any of the foregoing. See Iowa Code 453A.42
  • 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
  • Special assessment: means an unpaid special assessment certified pursuant to chapter 384, subchapter IV. See Iowa Code 425.17
  • state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
  • Supplemental appropriation: Budget authority provided in an appropriations act in addition to regular or continuing appropriations already provided. Supplemental appropriations generally are made to cover emergencies, such as disaster relief, or other needs deemed too urgent to be postponed until the enactment of next year's regular appropriations act.
  • year: means twelve consecutive months. See Iowa Code 4.1
 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”, andsubsection 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.
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