Local seniors and veterans have until July 1 to apply for the new Homestead property tax exemptions.

The bill, signed by Gov. Kim Reynolds on May 4, provides an additional $6,500 homestead property tax exemption for senior citizens and is estimated to give seniors a total of $50 million in tax breaks across Iowa. It also doubles the exemption for veterans by as much as $4,000, and is expected to be a statewide tax break of $7 million. An exemption is a reduction of property tax value, instead of a reduction in the amount of taxes property owners pay.

“The benefit to sign up for the exemption is to get an amount of value determined by the law, which for tax year 2023 is $3,250,” Marshall County Assessor Blaze Wurr said. “It changes up to $6,500 for the next year’s taken-off taxable value during the tax calculation for their property. For tax year 2023, if they sign up and qualify, they won’t see that on their tax bills until taxes are paid on Sept. 24 or March 25.”

Marshalltown resident Bill Freeman, a senior citizen himself, said he was worried about how to apply for the exemptions as he did not have a computer. However, a trip to Wurr’s office quickly alleviated those concerns.

“I called and asked how I could apply, and I was told to come to the office,” Freeman said. “He filled out the form for me.”

Wurr said showing up at his office is not the only route residents can take to apply. If someone has a computer, he or she can go to the Iowa Department of Revenue website — https://tax.iowa.gov/forms/homestead-tax-credit-and-exemption-54-028 — or the Marshall County Assessor’s Office beacon website — marshallcountyia.gov/511/Homestead-Tax-Credit. There is a link on which people can click on the Marshall County site which will take them to the Homestead Tax Credit Form.

Since the bill was signed, Wurr said his office has received 236 applications. As of Thursday, he had not seen any Marshall County veterans submit applications.

“To my understanding, if they [veterans] are currently signed up for it, since it was a previously existing exemption, is that the value will automatically go to what the law says,” Wurr said.

Possible effects on city and county governments and school districts resulting from the exemption is a concern for Rep. Sue Cahill (D-Marshalltown).

Cahill

“It is great for the homeowners, and I hope they get it,” she said. “I just hope levies are not raised.”

Cahill explained the state has put the exemptions into place, and the local entities may have to adjust levies — taxes assessed to all property owners to fund services — to make up for the lost revenue, or risk losing services.

“I don’t want to have a lessened police department or fire department,” she said. “Yes, there are lower taxes, but what were those taxes providing? Will the police or fire department be able to replace vehicles?”

Tomlinson

Marshall County Treasurer Deann Tomlinson said the county will see an estimated reduction of $150,000 in property tax revenue. She said the Marshall County Board of Supervisors will need to make necessary adjustments to the budget as a result.

“I think the exemptions are great for our seniors on fixed incomes and our veterans who have served our country,” she said. “More money in the pockets of seniors and veterans is a very good thing. We as a county just have the simple responsibility to find the efficiencies to pay for it, and not pass it off as a tax increase to the rest of our Marshall County property taxpayers.”

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Contact Lana Bradstream

at 641-753-6611 ext. 210 or

lbradstream@timesrepublican.com.