§ 425.40 — Low-income fund created

Iowa § 425.40

• Jurisdiction: Iowa
• Title X: FINANCIAL RESOURCES
• Ch. 425: HOMESTEAD TAX CREDITS, EXEMPTIONS, AND REIMBURSEMENT

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1. A low-income tax credit and reimbursement fund is created. Within the low-income tax
credit and reimbursement fund, a rent reimbursement account is created under the control
of the department of health and human services and a tax credit account is created under
the control of the department of revenue. Amounts appropriated to the fund shall first be
credited to the rent reimbursement account.
2. a. The director of health and human services shall use amounts credited to the
rent reimbursement account for a fiscal year to pay all claims for reimbursement of rent
constituting property taxes paid for claimants described in section 425.17, subsection 2,
paragraph “a”, subparagraph (2). If the amount appropriated for purposes of this section for
a fiscal year and credited to the rent reimbursement account is insufficient to pay all claims
in full, the director of health and human services shall pay all such claims on a pro rata basis.
b. If the amount appropriated for purposes of this section for a fiscal year and credited
to the rent reimbursement account exceeds the amount necessary to pay in full all
reimbursement claims for the fiscal year, the department of health and human services
shall transfer such excess amount to the department of revenue for deposit in the tax credit
account. The department of revenue shall use any amounts credited to the tax credit account
for a fiscal year to pay to the counties all claims for credit for property taxes due for the fiscal
year, orifsuchamountisinsufficient, topaytothecountiesallsuchclaimsonaproratabasis.
3. In order for the director of revenue or the director of health and human services to
carry out the requirements of subsection 2, notwithstanding any provision to the contrary
in this subchapter, claims for reimbursement for rent constituting property taxes paid filed
before May 1 of the fiscal year shall be eligible to be paid in full during the fiscal year and
those claims filed on or after May 1 of the fiscal year shall be eligible to be paid during the
following fiscal year and the director of revenue is not required to make payments to counties
for the property tax credit before June 15 of the fiscal year.