Property owners can apply for homestead tax credit, military exemptions or
family farm tax credit if eligible.
Madison County, Iowa - Assessor - Tax Credits/Exemptions
Iowa law provides for a number of
credits and exemptions. It is the property owner's responsibility to apply for
these as provided by law. It is also the property owner's responsibility to
report to the Assessor when they are no longer eligible for any credit or
exemption they have applied for. Following is a list of several credits and
exemptions available in Iowa.
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. This credit reduces the value on which taxes are calculated by a
maximum of $4,850. (refer to code of Iowa, Chapter 425)
Veteran Homestead Credit Tax credit to a disabled veteran with a service related
disability of 100%.
Filing Requirements: This credit may be
claimed by any 100 % disabled veteran of any military forces of the United
States. The Veteran's DD214 papers must be recorded with the Recorder and a
current copy of the benefits paid letter showing the percentage of disability
must be submitted to the assessor at the time the application is filed. The
amount of the credit is a maximum of the entire amount of tax payable on the
Military Tax Exemption
To file for the exemption, the property owner must be a resident of Iowa and
meet one of the following qualifications;
• Honorably discharged veteran who served in eligible service period.
• 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 or 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.
New applications must be made with the Assessor on or before July 1 of the year
the exemption is first claimed. As with the Homestead Tax Credit, the exemption
remains in effect until the property owner is no longer eligible. This exemption
is worth the taxes calculated on $2,778 for WWI veterans and $1,852 for all
others after that time. (Refer to Code of Iowa Chapter 427)
Family Farm Tax Credit
This is a tax credit on agricultural tracts of land 10 acres or more that are
farmed by the owner or immediate family members (this incased brothers/sisters,
sons/daughters, grandchildren , uncles/aunts, nephews/ nieces.) To obtain the
credit, the owner must file an application for credit with the assessor by
November 1. If the claim for credit is approved, no further filing shall be
required provided the ownership and the designated person actively engaged in
farming the property remain the same during successive years. A new application
for credit shall be required only if the property is sold or the designated
person changes. The owner shall provide written notice to the assessor if the
designated person changes. Failure to do so shall result in the owner's being
liable for the amount of the credit plus a penalty equal to 5 percent of the
amount of the credit granted.
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Credits/exemptions administered by the Assessor's office;
filing is required on them as provided by Iowa law.