Auditor's Office

Homestead Credit

One of the responsibilities of the auditor's office is to update parcel information when a property is transferred. We also update property tax credits on real estate parcels in Story County.

Many homeowners do not take advantage of the homestead credit that is available to them under Iowa law. If you do not currently have a homestead credit, I would urge you to consult either the County or Ames Assessor's Office to determine your eligibility. This credit can have quite an impact in reducing your property tax bill.

Qualifications

The exact legal qualifications to receive a homestead credit are outlined in Iowa Code Section 452.2. The main requirements include:

1) The owner of the property being claimed as a homestead declares residency in Iowa for purposes of income taxation.

2) The property is occupied by that person or that person's spouse for at least six months in each of those calendar years in which the fiscal year begins.

The Assessor's Office will be glad to assist in determining a person's eligibility to receive a homestead credit and answering any questions regarding homestead credits.

To apply for this credit a person needs to contact the County or Ames Assessor's office and apply in person.

How Does the Homestead Credit Work?

The homestead credit reduces the assessed value of a residential property by $4850 which in turn will reduce a homeowner's property taxes.

Here's an example: the assessed value of Mr. X's parcel with his home is $100,000. The assessed value is rolled back by the state of Iowa for property tax purposes at a rate of 56.2651% for 2000.

The taxable value of the parcel is $56,265. If the consolidated levy rate is $30.00 per thousand of valuation in Mr. X's town, the property taxes are calculated this way:

56,265/1000 = 56.265

56.265 x $30.00 = $1687.95 (property tax total)

With a homestead credit, Mr. X's property tax bill would be reduced:

56,265/1000 = 56.265

56.265 x $30.00 = $1687.95 subtotal

4.850 x $30.00 = $145.50 (homestead credit)

$1687.95 - $145.50 = $1542.45 (property tax total)

The credit amount will vary depending on the consolidated levy rate of the city or township where you live.

Deadline

The deadline to receive a homestead credit for property taxes due in September 2003 and March 2004 is July 1, 2002.

Where to Apply

To apply for a homestead credit in Story County a person should contact the County Assessor (515-382-7320) or City of Ames Assessor (515-239-5370) depending on the location of his or her residence. Normal office hours for both offices are 8 a.m. to 5 p.m.

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