Credit and Exemptions

Credits and Exemptions

Iowa law provides for a number of credits and exemptions. It is the property owner’s responsibility to apply for these as provided by law. It is also the property owner’s responsibility to report to the Assessor when they are no longer eligible for any credit or exemption they have applied for. Following is a list of several credits and exemptions available in Iowa.

HOMESTEAD TAX CREDIT

To qualify for the credit, the property owner must be a resident of Iowa and occupy the property on July 1 and for at least six months of every year. New applications for homestead tax credit are to be filed with the Assessor on or before July 1 of the year the credit is first claimed. Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies. This credit reduces the value on which taxes are calculated by a maximum of $4,850. (Refer to Code of Iowa, Chapter 425)

MILITARY SERVICE TAX EXEMPTION

Iowa residents who meet one of the following service requirements are eligible for the exemption:

  1. Honorable discharged veteran who served for a minimum aggregate of eighteen months.
  2. Honorable discharged veteran who served for fewer than eighteen months because of a service related injury.
  3. Honorable discharged former member of Reserve Forces or Iowa National Guard who served at least 20 years.
  4. Member of Reserve Forces or Iowa National Guard who have served at least 20 years and continue to serve.
  5. Honorable discharged former member of the Armed Forces if any portion of their term of enlistment would have occurred within the Korean Conflict but who opted to serve 5 years in the reserve forces as allowed by Federal law.
  6. Honorably discharged veteran who served in an eligible service period (Iowa Code Chapter 35)

Application must be made with the Assessor on or before July 1 of the year the exemption is first claimed. The military certificate of satisfactory service, order transferring to inactive status, reserve, retirement, order of separation from service or honorable discharge must be recorded in the office of the county recorder. Members of the Reserve Forces or Iowa National Guard who have served at least 20 years and continue to serve shall record the veteran’s retirement points accounting statement issued by the armed forces of the United States, the state adjutant general, or the adjutant general of any other state. The exemption from taxation is $1,852. If the qualified veteran does not claim the exemption the spouse, unmarried widow(er), minor child or widowed parent may be eligible to claim the exemption. (Refer to Iowa Code Chapter 426A)

BUSINESS PROPERTY TAX CREDIT

Certain commercial, industrial, and railroad properties qualify. Does not apply to residential or agriculturally classified property. One credit is available for each qualified property unit. A property unit consists of contiguous parcels of the same classification that are owned by the same person and operated by that person for a common use and purpose.

The actual amount of credit each property unit will receive depends in part upon the total value of all property units and the average consolidated rates in each unit. Applications must be received by the county or city assessor by January 15, 2014 then March 15th, 2015 and thereafter. Find more at:http://www.iowa.gov/tax/locgov/13PTReform.html external link (Refer to Code of Iowa Chapter 426C)

FAMILY FARM TAX CREDIT

This is a tax credit on agricultural tracts of land 10 acres or more that are farmed by the owner or immediate family members (this includes brothers/sisters, sons/daughters, grandchildren, great grandchildren, uncles/aunts, nephews/nieces.) Beginning July 1, 2001, this tax credit went to a one-time signing. New applications for family farm tax credit are to be filed with the Assessor on or before November 1 of the year the credit is first claimed. Once a person qualifies, the credit continues until the property is sold or until the owner no longer qualifies. Applications are taken in the Assessor’s office. (Refer to Code of Iowa Chapter 425A)

Following is a list of several other credits/exemptions administered by the Assessor’s office. Filing is required on them as provided by Iowa law.

Credit or ExemptionTime PeriodContact for EligibilityPhoneFiling Deadline
Forest ReservePermanentAssessor641-623-5445February 1
Fruit Tree Reservation8 YearsAssessor641-623-5445February 1
Forest CoverAnnualSoil Conservation Service641-528-4115February 1
Open PrairieAnnualSoil Conservation Service641-528-4115February 1
WetlandsAnnualDNR State Wildlife Biologist641-752-5521February 1
Native PrairieAnnualDNR State Wildlife Biologist641-752-5521February 1
Wildlife HabitatPermanentDNR State Wildlife Biologist641-752-5521February 1
Impoundment StructuresAnnualSoil Conservation Services641-528-4115February 1
Pollution ControlPermanentAssessor641-623-5445February 1
Cattle Facilities5 YearsAssessor641-623-5445February 1
Historic Property4/4 YearsState Historical Society515-281-8637February 1
Urban RevitalizationBy OrdinanceCityFebruary 1
Industrial Partial 427B5 YearsAssessor641-623-5445February 1
Disabled VeteranPermanentlocal Administrator Veterans Affairs641-236-5722February 1
Geothermal Heating & Cooling System10 YearsAssessor641-623-5445February 1

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