New State Law Includes Property Tax Exemption For Seniors, Added Relief For Veterans
A new state law increases the existing military service property tax exemption available to veterans from the current $1,852 to $4,000, starting with the assessment year beginning on Jan. 1, 2023.
Homeowners who are age 65 or older or a veteran of the U.S. military are eligible for some new tax relief in Iowa
The property tax reduction law passed in the Iowa Legislature this year includes a new property tax exemption for seniors and an increased exemption for military veterans.
Iowa residents age 65 or older are now eligible for a new property tax exemption of $3,250 for the assessment year that began Jan. 1, 2023. The exemption will increase to $6,500 for subsequent tax years.
The senior exemption is available in addition to the existing homestead exemption of $4,850, which has no age requirement. However, unlike the existing tax credit, the state will not reimburse local governments for the loss of tax revenue created by the senior exemption.
Once approved for the senior exemption, property owners do not have to apply for subsequent years.
In addition to the new senior exemption, the existing military service property tax exemption available to veterans will increase from the current $1,852 to $4,000, starting with the assessment year beginning on Jan. 1, 2023.
To receive the exemption, a veteran must be “honorably separated, retired, furloughed to a reserve, placed on inactive status or discharged,” according to the Iowa Department of Revenue website. Veterans already receiving the exemption will automatically get the increase and are not required to submit a new application form.
New application forms for both the senior and veteran exemptions must be submitted to the Mills County Assessor’s Office before July 1 to be eligible for the Jan. 1, 2023, assessment year. Applications received after the deadline, will be considered for the following assessment year. Application forms are available from the assessor’s office and on the Iowa Department of Revenue website.
Exemptions are a reduction in the taxable value of a property, not a direct cut in the amount of property taxes owed.
For additional information on property tax exemptions available in Iowa, contact the Mills County Assessor’s Office at 712-527-4883.