Property Tax Credits & Exemptions Kay Arvidson Property Tax Division December 16, 2015
Today s Agenda A Little About Property Taxes Definitions Credits & Exemptions Agricultural Business Economic Development Preservation Tax Exempt Property Individuals & Military
Local Government Determine Tax Due Determine Property Valuation 107 Assessors 99 Counties plus Cities of Ames, Cedar Rapids, Clinton, Davenport, Dubuque, Iowa City, Mason City, and Sioux City 99 County Auditors Determine property tax due based on budgets set by local authorities (city/county/school) Tax allocated according to property valuation. Send Tax Statements & Collect Tax 99 County Treasurers
Credits and Exemptions Defined Tax Exemption Amount is deducted from property valuation before taxes are calculated. Tax Credit Amount is deducted from taxes due. Check the Iowa Code for specific details
legis.iowa.gov
find forms: tax.iowa.gov
Credit & Exemption Details and Link to Form
Find Your Local Assessor www.iowa-assessors.org
Contact Information for All Assessors
Agricultural
Agricultural Land Tax Credit Iowa Code 426 Intent to offset school taxes > $5.40 Tracts of 10 acres or more qualify Tracts < 10 acres when contiguous to qualifying tract No application needed
Family Farm Tax Credit Iowa Code 425A Intent to offset school taxes > $5.40 Tracts > 10 acres qualify Tracts < 10 acres if contiguous to qualifying tract Owner or agent must farm the land Apply by November 1 to local assessor Form online @ tax.iowa.gov No reapplication one and done
Preservation
Historic Property Rehabilitation Exemption - Iowa Code 427.16 Meets definition of Historic Property See Iowa Code 427.16 Apply by February 1 to local assessor Documentation from State Historic Preservation Officer Dept. of Cultural Affairs: Maximum duration of 4 years See code for expenditure and cost details See code for property valuation details after exemption Form online @ tax.iowa.gov One and done
Barn and One-Room School House Exemption - Iowa Code 427.1 (31) & (32) Exempts increased value from improvements Barns and one-room schools built before 1937 For Barn - continues as long as used in farming For School - not used as dwelling Apply by February 1 to local assessor Form online @ tax.iowa.gov One and done
Tax Exempt Property
Religious, Education and Charitable Property Exemption - Iowa Code 427.1 Qualified property is not taxed Property limited to 320 acres Cannot be used for profit Apply by February 1 to local assessor Assessor may request additional information Form online @ tax.iowa.gov One and done
June 2015 - Tax Exempt Property Iowa Code 427.1(8)(a) Begins January 1, 2016 Exemption for property owned by a religious institution or society For land leased not exceeding 50 Acres All monetary and in-kind profit used exclusively for the appropriate objects of the institution or society
June 2015 - Tax Exempt Property Iowa Coe 427.1(6)(b) Begins January 1, 2016 Agricultural land owned by a Cemetery Association Can be leased for agricultural use Proceeds from lease used exclusively for cemetery maintenance
Economic Development
Speculative Shell Buildings Exemption - Iowa Code 427.1 Encourage local business development Available to Community Development Organizations, Nonprofit cooperative associations, and for-profit entities Qualifications: See Iowa Code 427.1(27)b(1) New Buildings Additions or reconstruction / renovation Existing buildings Exemption ends when building is leased or sold Apply by February 1 to local assessor For value added = year value added is first assessed for taxation For reconstruction or renovation = year project begins Form online @ tax.iowa.gov
Urban Revitalization Property Exemption Iowa Code 404 Value Added Exemption for urban areas Increases residential property at least 10% Increases other classes of property at least 15% Or percent established set by local officials Percent and length of time exemption applies adopted by local officials Must be approved by City Council or County Board of Supervisors Apply to city or county governing body Apply by February 1 of year value is added See local assessor for application details
Data Center Business Property Exemption - Iowa Code 427.37a For electrical, heating, and cooling infrastructure See code for infrastructure details and data center business requirements Apply by February 1 to local assessor Form online @ tax.iowa.gov One and done
Web Search Portal Exemption Iowa Code 427.35 & 36 For electrical, heating, and cooling infrastructure See code for infrastructure details and web portal business requirements Infrastructure and equipment defined in Iowa Code Apply by February 1 to local assessor Form online @ tax.iowa.gov One and done
Business
Business Property Tax Credit Iowa Code 426C.3 Commercial, Industrial and Railroad property Applies to Property Unit One or more contiguous parcels In same county Same property class With same ownership Common use and purpose $150 million pool Form online @ tax.iowa.gov
Business Property Tax Credit Apply to local assessor Iowa Code 426C.3 Apply by March 15, 2016 for taxes payable September 2016/March 2017 Then application date changes to July 1 For taxes payable next fiscal year Example: Apply July 1, 2016 for taxes payable Sept 2017/March 2018 Credit continues until ownership changes Reapplication then required
Industrial Property, Research-Service Facilities, Warehouses, Distribution Centers, and Cattle Facilities Exemption Iowa Code 427B Encourage industrial and commercial development New construction or reconstruction see code for definitions Approved by city council or board of supervisors Partial exemption for 5 years, percent varies each year Cattle Facilities must be owner-operated Apply to local assessor by February 1 year value is added Form online @ tax.iowa.gov
Local Option Remedial Action Iowa Code 427B.20 Credit for portion of property taxes related to correction action of underground storage tank. Cost of corrective action determined by Iowa Comprehensive Petroleum Underground Tank Fund Board Requires ordinance by city council or board of supervisors Apply annually by September 30 to city council or board of supervisors Form online @ tax.iowa.gov
Methane Gas Conversion Property Exemption - Iowa Code 427.1 Property used in an operation connected with or in conjunction with a publicly-owned sanitary landfill Used as methane gas conversion property If not with public landfill, property placed in service between January 1, 2008 December 31, 2012 This exemption limited to 10 years Apply annually by February 1 with local assessor Form online @ tax.iowa.gov
Pollution Control and Recycling Exemption - Iowa Code 427.1 (19) Certain Pollution Control and Recycling Property Property certified eligible by Iowa DNR iowadnr.gov Apply by January 1 to DNR DNR provides to local assessor by February 1 Form online @ tax.iowa.gov
Wind Energy Conversion Property Special Valuation Procedures - Iowa Code 427B.26 Requires ordinance by city council or county board of supervisors for 20 year duration Valuation procedure applies to net acquisition cost of wind energy conversion property See Iowa Code for definition of property Apply by February 1 of first assessment year See local assessor for application details
Solar Energy Tax Exemption Iowa Code 441.21 (8 b-c) Construction of solar energy system on agricultural, residential, commercial or industrial property Valuation does not increase for 5 assessment years. See Iowa Code for system definition No application needed See local assessor for details.
Individuals
Geothermal Heating and Cooling System Exemption - Iowa Code 427.1(38) New or refitted construction or installation after July 1, 2012 Residential Class property only 10 year duration Apply by February 1 to local assessor Form online @ tax.iowa.gov One and Done
Homestead Tax Credit Iowa Code 425 Must own & occupy homestead on July 1 each year Iowa Resident for income tax purposes Occupy property at least 6 months a year Persons in military Persons in hospital, nursing or extended care facilities if property is not rented Apply by July 1 to local assessor Form online @ tax.iowa.gov One and Done as long as eligible
Disabled Veteran Homestead Tax Credit - Iowa Code 425.15 Credit for entire amount of tax Meets Homestead Tax Credit Qualifications One homestead credit per qualifying veteran ½ Acre Urban or 40 Acres Rural Apply by July 1 to local assessor Form online @ tax.iowa.gov One and Done
Who Qualifies Disabled Veteran Homestead Tax Credit - Iowa Code 425.15 Veteran who received property under Fed Adaptive Housing for Disabled Veterans provisions (38 USC 21.801 prior to 8/9/1991 or 38 USC 2101, 2102) Veteran or Former Member of National Guard under Iowa Code Owns home 100% Service-Connected Disability 100% Unemployable paid at 100% Disability Rate Surviving Spouse or Dependent Child of qualified veteran if receiving DIC payments (Dependency Indemnity Compensation)
Military Exemption Iowa Code 426A Who Qualifies Honorably discharged military veterans Former or current members of Reserve Forces or Iowa National Guard who have served at least 20 years Member of Reserve Forces or Iowa National Guard on active duty for a minimum of 90 days Honorable Discharged Veteran who served eligible period 1917 1990 Spouse, Unmarried Widow(er), Minor Child, Widowed parent
Military Exemption Iowa Code 426A Resident of Iowa Legal owner of property Apply by July 1 to local assessor Form online @ tax.iowa.gov One and done
Other Information
Property Tax Questions PropertyTax@iowa.gov
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Purpose of this Presentation This presentation is intended for general educational purposes only. Anyone involved in an audit or protest must contact the Department representative they are working with on that issue.
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