Exemptions and Credits
Iowa law provides for a number of exemptions and credits, including Homestead Credit, Disabled Veteran's Homestead Credit, Military Exemption, and Business Property Tax Credit. It is the property owner's responsibility to apply for these as provided by law.
Filing is required on the following, if provisions have been made for exemptions as required:
*Business Property Tax Credit
*Disabled Veteran's Homestead Credit
* Family Farm Credit
* Forest Reservations
* Fruit Tree Reservations - 8 years
- Impoundment Structures
- Native Prairies
- Open Prairies
- Forest Cover
- River and Stream Banks
- Recreational Lake
* Pollution Control
* Wildlife Habitat
+ Urban Revitalization
+ Industrial Partial 427
- Annual * Permanent +Other
Click here for a complete list of credits and exemptions for more information on qualifications or contact the Assessor's office.
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. 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. You may only claim one homestead credit.
If the property you were occupying as a homestead is sold, or if you cease to use the property as a homestead you are required to report this to the assessor in whose jurisdiction the property is located.
If the home qualifies and the property owner files on or before July 1, the exemption will go into effect for the current assessment year. If the property owner files after July 1, the exemption will go into effect the year following the sign up. 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:
- Honorably discharged veteran who served for a minimum aggregate of eighteen months.
- Honorably discharged veteran who served fewer than eighteen months because of a service related injury.
- Honorably discharged former member of Reserve Forces or Iowa National Guard who served at least 20 years.
- Member of Reserve Forces or Iowa National Guard who have served at least 20 years and continue to serve.
- 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.
- 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. You may only claim one military exemption.
If the property owner files on or before July 1, the exemption will go into effect for the current assessment year. If the property owner files after July 1, the exemption will go into effect the year following the sign up.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 need to be filed by November 1 in the Assessor's Office.
No further filing is 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)