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Property Tax Suspension for People Who Get SSI
by: Legal Hotline for Older Iowans
Many people with a disability own or are buying their homes. They may have a hard time paying their property taxes which become due each year. Under Iowa law, people who get Supplemental Security Income (SSI), or State Supplemental Assistance (SSA), or live in a health care facility, can get their property taxes suspended. This means not having to pay property taxes until the property is sold or transferred to someone else, or until you are no longer getting SSI. The law says County Boards of Supervisors must suspend property taxes for people who get SSI and SSA, or live in a health care facility.
How the Program Works
If you are an eligible taxpayer, which means you get SSI, SSA, or live in a health care facility, the county must suspend all property taxes. This includes more than ordinary property taxes. It includes special assessments, rates, charges, interest, fees and costs that might be assessed against your property. It also includes any taxes due at the time of the suspension.
In order to prove eligibility, you should get a Notice of Decision from the Department of Human Services. It will include a statement that you are eligible for property tax suspension. Take the Notice of Decision to your County Board of Supervisors. The Board will order the County Treasurer to suspend your taxes. If you do not have your Notice of Decision, contact the Department of Human Services and ask for another copy. You must give the County Board of Supervisors proof that you qualify for the property tax suspension. The Notice of Decision is the proof you need.
Besides suspending property taxes for people who get SSI, SSA, or live in health care facilities, other people can ask for their property taxes to be suspended if they are unable to pay taxes due to age or illness. These property owners must make a request to the County Board of Supervisors. The Board will decide whether to grant the request.
Tax Credits are Also Important
Elderly and disabled Iowans with low or moderate incomes also qualify for a special property tax credit. This tax credit can reduce the property taxes owed. People whose taxes have been suspended should also apply for this tax credit. It will reduce the amount of taxes that build up while they are suspended.
To apply for this property tax credit, you must fill out an application and file it with the County Treasurer every year between January 1 and June 1. You can get the form from the County Treasurer or the Iowa Department of Revenue. How much of a tax credit you get depends on your income. The lower your income, the higher the percentage of your property taxes the credit will pay. The maximum is $1000.
Other People are Eligible for the Tax Credit
The Property Tax Credit for the Elderly and Disabled is also available to low and moderate income Iowans who do not get SSI or SSA. You are eligible for the tax credit if you are at least 65 years old, or are totally disabled.
Combining a Tax Credit and a Suspension
It is to your advantage to claim both a tax suspension and a tax credit. A tax suspension means the taxes will not have to be paid until the property is sold or otherwise transferred out of your name, or until you are no longer eligible for the suspension. The tax credit reduces the amount of taxes that must be paid when you transfer the property out of your name, or when the suspension stops.
Get Details If You Have Questions
If you think you qualify to have your property taxes suspended, contact your Board of Supervisors or County Treasurer, or your local Department of Human Services. If you have problems getting your taxes suspended, or would like details about this, contact your local Iowa Legal Aid office. Persons 65 and over can call the Legal Hotline for Older Iowans at 800/992-8151 or 282-8161 in Des Moines.
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