Iowa · Iowa Code §§425.1, 425.2Iowa homestead tax credit after buying: the buyer refiles by July 1

Iowa's homestead credit is a credit against the property tax equal to the actual levy on the first $4,850 of actual value of each eligible homestead (Iowa Code §425.1(2)). To get it, the owner files a verified statement and designation of homestead with the assessor, on the assessor's form, no later than July 1 of the year claimed; a claim filed after July 1 counts for the following year (§425.2(1)). Once allowed, it continues without refiling while the property is owned and used as a homestead on July 1 each year, the owner declares Iowa residency for income tax purposes, and the owner or spouse occupies it at least six months a year – but when the property is sold or transferred, the buyer who wants the credit must refile (§425.2(2)). The seller, or the personal representative of an owner who died, gives the assessor written notice that the property is no longer the former claimant's homestead (§425.2(2)). The same form also claims the separate homestead exemption for owners who meet its age criteria (§425.2(4)). Filing for the credit also means certifying that the home has a smoke detector – and, if it has a fuel-fired heater or appliance, a fireplace or an attached garage, carbon monoxide alarms – installed under the state rules, or that they'll be installed within 30 days of the filing (Iowa Code §10A.518(2)(b), (3)(b)).