Property Tax Relief

By Jon Dunwell

One of the accomplishments I’m most proud of from the 2023 Legislative Session is the new property tax exemptions that will provide direct, immediate relief to Iowa property taxpayers. If you qualify for these exemptions, you must submit your application to your local accessor by July 1st in order to receive the relief for the assessment year beginning Jan. 1, 2023.

Iowans 65 and Older

Iowans 65 years of age or older now qualify for a new Homestead Tax Exemption. For the assessment year beginning on Jan. 1, 2023, the exemption is for $3,250 of taxable value. For assessment years beginning on or after Jan. 1, 2024, the exemption is for $6,500 of taxable value. An exemption is a reduction in the property’s taxable value rather than a direct reduction in the amount of property tax you pay.

The Iowa Department of Revenue has amended the Homestead Tax Credit Exemption (54-028) form to allow claimants to apply for the new exemption. Be sure to submit your application before July 1. If the exemption is granted, the exemption will be granted for future years without additional filing as long as the claimant continues to qualify. The form can be found on the Iowa Department of Revenue website and searching for “homestead exemption.” The form is also available at the County Assessors office.

Iowa Veterans

This session, we also created a property tax exemption for Iowa Veterans. Our bill transforms the current property tax credit for military veterans, which amounts to $1852, into a new Military Service Property Tax Exemption that will total $4,000 of taxable value for all honorably discharged veterans in Iowa. This change will save veterans $8.6 million statewide. The Iowa House was pleased to support those that have fought for our country in this property tax bill.

Applications for this exemption are also due July 1. Claims will not need to be filed on the same property in any following years. The form for this exemption can be found here or at your County Assessors office https://tax.iowa.gov/forms/military-service-property-tax-exemption-54-146

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July 1st will be here before we know it. Make sure your friends and family know how to take advantage of this tax relief. We’ve heard from so many constituents about the need for relief and we are committed to delivering more property tax relief in upcoming sessions.

Let’s keep the conversation going!