Homestead Credit

Military Exemption

Family Farm Credit

Other Credits & 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. 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)

Military Service Tax Exemption

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

  1. Honorably discharged veteran who served for a minimum aggregate of eighteen months.
  2. Honorably discharged veteran who served fewer than eighteen months because of a service related injury.
  3. Honorably 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. Honorably 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 $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)

Family Farm Credit

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.

Family Farm One-Time Filing

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)

Other Credits and Exemptions

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.
 
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

Members   |   Home