Iowa seniors and veterans can now apply for property tax exemption
STATEWIDE — Home owners 65 and older have until July 1 to file for a new property tax exemption.
Earlier this month Gov. Kim Reynolds signed into law a new property tax break, House File 718, which establishes a homestead tax exemption for residents 65 years or older.
“People who qualify should sign up for it,” said Shelby County Assessor Tony Buman.
“It’s not a new program,” he said, they just added to it so an additional credit is available to those 65 and older.”
The exemption is in addition to the homestead tax credit. However, unlike the current credit, the state will not reimburse the cost of the exemption to local governments.
Buman noted the exemptions will reduce the taxable value of the property, rather than reducing the amount of property tax paid.
Iowans 65 years or older (on or before January 1 of the assessment year) and own the home they live in could qualify for the new property tax break. Approximately 750,000 households claimed homestead tax credits in the fiscal year 2023.
The exemption will be based on the 2023 property assessments, which are due the fall of 2024.
Buman said those turning 65 after January 1, 2023 may still apply. However, the exemption won’t be shown until next year’s property assessments.
The exemption amount is for $3,250 of taxable value for the assessment year starting January 1, 2023. For assessment years on or after January 1, 2024, the exemption is for $6,500 of taxable value.
This new property tax break is estimated to result in a $50 million property tax cut statewide. A point to note is that the exemption reduces the property’s taxable value and must not be confused with the direct reduction in the property tax amount.
The new law more than doubles the property tax exemption for veterans from $1,852 in taxable value currently to $4,000.
Military veterans must also apply by July 1 to get the exemption.
Veterans currently receiving the exemption are not required to file a new application provided they or their spouse is the legal or equitable owner of the property (as of July 1) for which the exemption is allowed.
Military veterans can find the applications at tax.iowa.gov/forms under the name Military Service Property Tax Exemption 54-146.
How To Apply
Buman said qualifying applicants may stop at the Assessor’s Office to apply.
“Please be patient,” Buman said, noting there have been several Shelby Countians already applying.
“We are happy to help.”
Applications may also be found at tax.iowa.gov/forms under the name Homestead Tax Credit and Exemption 54-028.
Applicants will have to provide their date of birth and certify that the information they provided is correct.
Forms must be submitted to the county assessor’s office by July 1 of the year in which the exemption is claimed. If a form is submitted after the due date, it will count as a claim for the following year.
If the Department of Revenue approves the exemption, the resident does not need to reapply in future years, provided they continue to meet the requireme