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Title 8: Medicaid Page 25 Iowa Department of Health and Human Services Employees’ Manual Chapter A: Administration Property Tax Relief Revised January 13, 2023 Homestead Property Tax Credit for the Elderly or Disabled Because the Department serves the population that qualifies for tax suspension and other low-income people who might qualify for a property tax credit or rent reimbursement, the Department is required to: ▪ Inform members who might qualify about the program. ▪ Provide verification to members who own property and who receive the benefits that qualify them for automatic tax suspension. ▪ Verify continued eligibility for tax suspension annually for the county board of supervisors. Homestead property tax credit and rent reimbursement are explained in Comm. 121 or Comm. 121(S), Important Notice to Property Owners and Renters. Give this pamphlet to elderly and disabled applicants. Document this in the case record. Homestead Property Tax Credit for the Elderly or Disabled Legal reference: Iowa Code Sections 425.16 - 425.40 Certain elderly and disabled residents are entitled to a tax credit of up to $1,000.00 of their tax liability on their homestead property. To qualify in 2023, household income must be less than $25,328.00 per year, and the person must be: ▪ 65 years of age or older on December 31, 2022, or ▪ Totally disabled as of December 31 of the previous year. Property owners must file for the tax credit with the county treasurer in the county where their homestead is located. The amount of the credit depends upon the household’s income. Property Tax Suspension Legal reference: Iowa Code Section 427.9 A person may be eligible for suspension of property taxes when the person: ▪ Receives Supplemental Security Income (SSI), or ▪ Receives State Supplementary Assistance (SSA), including the supplement for Medicare and Medicaid eligibles, or ▪ Lives in a health care facility and the Department is paying for part of the care. Taxes may be suspended if the person owns or is purchasing real property. The person may be either the sole owner or a joint owner of the property. The property does not have to be homestead property. Tax suspension is automatic once the board of supervisors for the county in which the property is located receives verification that the person is eligible. Taxes on real property are suspended, without penalty, until the property is transferred to someone else.