DES MOINES, Iowa (KCAU) — Elderly Iowans have to chance to claim extra tax credits for the year.
That is thanks to a new Iowa bill, House File 718, that was signed by Governor Kim Reynolds on May 4, according to the Iowa Department of Revenue. The bill established a homestead tax exemption for any claimants 65 years or older.
In addition to the homestead tax credits, claimants will be eligible for the new homestead tax exemption if they own the home they live in and are 65 years old or older on or before January 1 of the assessment year.
The exemptions will reduce the taxable value of the property rather than reducing the amount of property tax paid. For the assessment year starting on January 1, 2023, the exemption is for $3,250 of taxable value. For assessments starting on January 1, 2024, or later, the exemption will be $6,500 of taxable value.
The Iowa Department of Revenue has amended the Homestead Tax Credit and Exemption to allow claimants to apply for the new exemption. Applications are due to local assessors by July 1. Granted exemptions will then be allowed without needing to make future filing as long as the claimant continues to qualify.