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.
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. A dwelling located on land owned by a Community Land Trust as defined in 42 U.S.C., Section 12773. 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 is equal to the tax on the first $4,850 of actual value for each homestead. (Refer Iowa Code, Chapter 425)
Iowa residents who meet one of the following service requirements are eligible for the exemption:
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 $2,778 for WWI veterans and $1,852 for all other service periods. 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)
This is a tax credit on agricultural tracts of land 10 acres or more that are
farmed by the owner or designated family members (this includes spouse, parent, grandparent, great grandparent, child, grandchild, great grandchild, stepchild, brother, sister uncle, aunt, niece, nephew.)
Applications are filed in the Assessor's Office.
If a claim for the family farm credit is filed by November 1, and approved, further filing is not required provided the claimant owns the property on July 1 of subsequent years and the designated person actively engaged in farming the property remains the same. A claim filed after November 1 shall be considered as a claim filed for the following year.
If the ownership changes, the new owner must re-file for the credit and if the "designated person" changes, the owner must re-file for the credit.
The owner must notify the Assessor in writing of a change in the "designated person". Failure to do so will result in a penalty.
Contact the Assessor's office for more information on the complexities of this law. (Refer to Iowa Code Chapter 425A)
Homestead Tax Credit
Military Service Tax Exemption
Family Farm Credit
Family Farm One-Time Filing
| Exemption | File By | Filing Requirement | Code Section |
|---|---|---|---|
| Family Farm | January - November 1 | One Time -- Filed after November 1 is for following year. | 425A.4 |
| Barn & One-Room School | February 1 | One Time | 427.1(31) 427.1(32) |
| Exempt Property - Religious, Literary, Charitable* | February 1 | One Time | 427.1(14) |
| Forest Reservation | February 1 | One Time | 427C.3 |
| Fruit Tree | February 1 | One Time | 427C.3 |
| Historic Property | February 1 | One Time | 427.16 |
| Impoundment Structure | February 1 | Annual | 427.1(20) |
| Indian Housing Authority | February 1 | One Time | 427.1(33) |
| Industrial Property Tax | February 1 | One Time | 427B.4 |
| Low Rent Housing | February 1 | One Time | 427.1(14) |
| Methane Gas Conversion Property | February 1 | One Time | 427.1(29) |
| Mobile Home Park Shelter | February 1 | One Time | 427.1(30) |
| Natural Conservation or Wildlife Areas | February 1 | Annual | 427.1(22) |
| Native Prairie | February 1 | Annual | 427.1(23) |
| Pollution Control | February 1 | One Time | 427.1(19) |
| Recycling | February 1 | One Time | 427.1(19) |
| Speculative Shell Building | February 1 | One Time | 427.1(27) |
| Urban Revitalization | February 1 | One Time | 404.4 |
| Wetlands | February 1 | Annual | 427.1(23) |
| Wildlife Habitat | February 1 | One Time | 427.1(24) |
| Disabled Vet Homestead | July 1 | Annual | 425.2 |
| Homestead | July 1 | One Time | 425.2 |
| Military | July 1 | One Time | 426A.13 |
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