Taxes are just a part of life. The burden for paying for many
municipal services almost all citizens enjoy however often falls
unfairly on property owners. In Polk County the following parties have
the ability to levy taxes on property owners:
- Schools
- Cities
- County
- Broadlawns Hospital
- Area XI College
- Des Moines Regional Transit
- County Assessor
- Agriculture Extension
- State of Iowa
Counties do however allow us methods to reduced our tax burden
through such mechanisms as abatements, roll backs and property tax
exemptions.
Exemptions are credits allowed by the assessors office to property
owners or entities who meet special conditions. There are currently 45
exemption programs on the books for everything from Agricultural
Societies to Wetlands.
The two types of exemptions that are the most commonly utilized for
residential property owners are the Homestead Tax Credit and the
Military Exemption.
The homestead tax credit is intended to provide tax relief for
those who own and occupy a home in Iowa. It reduces the taxable value
of a home by $4,850, thereby saving the average home owner about
$130-$140.
According to the Polk County Assessor "Any person who owns
homestead property in Iowa and is actually occupying the property as
his or her homestead is eligible to apply for a homestead tax credit.
The owner must occupy the dwelling as a home on July 1st of the year
for which the credit is claimed." It is available to people living in
such arrangements as, homes, town homes, condos, mobile homes, or a
business that they own and live in. It is available to both equitable
owners and those buying these types of property on contract, as long
as they occupy the property as their personal residence.
The military exemption is geared towards those that have served in the
armed forces. The military exemption is intended to provide tax
relief to veterans who own a home in Iowa. The exemption amount
allowed is $1,852, or $2,778.
According to the Polk County Assessor the following Veterans Qualify:
- Honorably discharged veteran, who served for a minimum of 18 months,
or for fewer than 18 months because of a service-related injury - Former member, or member who is currently serving, of Reserve Forces
or Iowa National Guard who has served at least 20 years. - Member of Reserve Forces or Iowa National Guard who was activated for
federal duty, not including training, for a minimum of 90 days. - Former member, of the Armed Forces, whose enlistment would have
occurred during the Korean Conflict but chose to serve 5 years in the
Reserve Forces.
Honorably discharged veteran in an eligible service period.
The military exemption allows that the credit can be claimed by
persons claiming the military member as a dependent, a dependent of
that member, or by those members of the military that are deployed
outside the state.
The exemptions are by no means automatically applied however. A
qualifying person needs to apply for the exemption at their county
assessors office. A qualifying individual does not need to re-apply
yearly after applying. Applying once is enough for the credit to
remain in effect as long as the person occupies the property or meets
other qualifications as specified by the taxing authority.
In order for the credits to be applied to the current tax year, you
need to apply for them before July 1st. After that the credit will be
applied to the next year's tax liability. For example, if you apply on
July 2nd 2010 or later, the credit will not be applied to this tax
year but instead will be applied to your tax bill for 2011. Under the
late application scenario, you would not see a reduction in your tax
payment until your March payment in 2012.
Applying is easy and does not take long. Just go to your assessors
office and tell them the name of the credit you are applying for. You
will fill out a short form and then the credit will be applied. If
you're curious about whether or not you are receiving a credit or are
eligible for one, the best thing to do is to call your assessors
office and ask them about it.
I have sold a number of homes where the occupant was not aware of
the existence of the credits and in some cases had missed out on
claiming them for 10 years or more, which added up over time amounted
to them paying far more in taxes than they should have.
If you are interested in reading more about exemptions and credits
you can visit the Polk County Assessors website at
http://www.assess.co.polk.ia.us.
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