Property owners are reminded that the deadline for applying for the 2016 Homestead Property Tax Credit, Disabled Veteran Homestead Tax Credit, Military Exemption as well as the Business Property Tax Credit is July 1, 2016. Applications received after that date will be considered an application for the 2017 credit.
Property owners outside the Cedar Rapids city boundaries may apply at the Linn County Assessor’s Office located on the second floor of the Jean Oxley Linn County Public Service Center, 935 2nd Street SW in Cedar Rapid between the hours of 8:00 a.m. through 5:00 p.m. Monday through Friday or visit the Linn County Assessor’s website at http://linn.iowaassessors.com/. The Linn County Assessor’s Office can be reached at 319-892-5220.
Cedar Rapids property owners should apply at the Cedar Rapids City Assessor’s Office at 500 15th Avenue SW in Cedar Rapids between the hours of 7:30 a.m. and 4:30 p.m. or visit the Cedar Rapids City Assessor’s website at http://cedarrapids.iowaassessors.com/. The City Assessor’s Office can be reached at 319-286-5888.
Homestead Property Tax Credit (Iowa Code Section 425) was originally adopted to encourage home ownership through property tax relief. The current credit is equal to the actual tax levy on the first $4,850 of actual value. To be eligible, you must own and occupy the property as a homestead on July 1 of each year, declare residency in Iowa for income tax purposes, and occupy the property for at least six months each year. Persons in the military or nursing homes who do not occupy the home are also eligible. The claim is allowed for successive years without further filing as long as eligible.
The Disabled Veteran’s Homestead Tax Credit (Iowa Code Section 425.15) was originally adopted to encourage home ownership for disabled veterans. The current credit is equal to 100% of the actual tax levy. Veterans with 100% service-related disability status qualify for this credit. Veterans also qualify who have a permanent and total disability rating based on individual unemployability paid at the 100% disability rate. The veteran must own and occupy the property as a homestead on July 1 of each year, declare residency in Iowa for income tax purposes, and occupy the property for at least six months each year. Persons in the military or nursing homes who do not occupy the home are also eligible. A surviving spouse of a disabled veteran receiving DIC payments also qualifies. The surviving spouse as a beneficiary of the estate of a veteran who received the credit may continue to receive the credit as long as the spouse resides in the qualified homestead and does not remarry. A claim must be filed on or before July 1. A current Benefits Paid letter and a DD214 must be included with the application.
The Military Property Tax Exemption reduces the taxable value of the property for military veterans. To qualify for a military exemption the property owners must be a resident and domiciled in the State of Iowa as well as the equitable or legal owner of the property upon which the claim for exemption is filed. A DD214 (honorable discharge) must be recorded with the Linn County Recorder stating the dates and eligible service period. Each honorable discharged veteran is allowed one military exemption within the State of Iowa.
Properties classed as Commercial or Industrial by their local assessor may qualify for a Business Property Tax Credit. Property owners that have an existing Business Property Tax Credit and have not changed the ownership, use, purpose, legal description of their property are not required to reapply. This is a one-time filing if there have been no changes.
The Assessor’s Office recommends that property owners apply for these credits at their earliest convenience.