Iowa seniors and veterans can now apply for new property tax breaks. Here’s how:

Iowa seniors have until July 1 to apply for a new property tax exemption included as part of a sweeping property tax cut signed into law in May.

And military veterans who already qualify for an existing tax credit will receive a new exemption without applying.

Gov. Kim Reynolds signed the new property tax law on May 4, one day after the legislation was overwhelmingly approved by Iowa lawmakers.

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What does the property tax reduction law do?

In addition to the new tax exemptions for seniors and veterans, the law will limit local governments’ revenue growth in future years and require them to use a portion of revenue growth above 3% to reduce their property tax levies.

Legislative Republicans estimate the law will provide about $100 million in property tax relief statewide.

How can Iowans 65 and older apply for the new property tax exemption?

The Iowa Department of Revenue announced Monday it had updated the homestead tax credit and exemption form on its website to reflect the changes.

Iowans age 65 or older are eligible for a property tax exemption worth $3,250 for the assessment year beginning Jan. 1, 2023. In subsequent years, the exemption doubles to $6,500.

Exemptions are a reduction in the taxable value of the property, not a direct reduction of how much property taxes a homeowner pays.

Iowans can find the application at tax.iowa.gov/forms under the name Homestead Tax Credit and Exemption 54-028. To claim the new exemption, applicants must provide their date of birth and certify that the information on the form is correct.

Forms must be returned to the county assessor’s office by July 1 of the year in which the credit or exemption is claimed. Forms turned in after that date will count as a claim for the following year.

Do senior Iowans have to reapply for the exemption?

Once the department grants the exemption, Iowans need not reapply in future years as long as they still qualify, the application form states.

Current law already exempts the first $4,850 of a qualifying home from property taxes through the homestead tax credit.

The new exemption for older Iowans is in addition to the current tax credit. But unlike the current tax credit, the state will not reimburse local governments for the cost of the exemption.

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Roughly 750,000 households claimed homestead tax credits in fiscal year 2023. It’s not clear exactly how many homes are owned by Iowans 65 and older.

Iowans who already receive a homestead tax credit but who aren’t eligible for the new exemption for seniors do not need to reapply for their credit.

The new exemptions for seniors included in the law are estimated to result in a $50 million property tax cut statewide.

How can Iowa veterans apply for the new military service property tax exemption?

With the new law, the military service property tax exemption and credit will increase from $1,852 to $4,000, starting with the assessment year beginning on Jan. 1, 2023.

The exemption is available to “an honorably separated, retired, furloughed to a reserve, placed on inactive status or discharged veteran.”

There were more than 121,000 beneficiaries of the military service property tax exemption in fiscal year 2023, according to the nonpartisan Legislative Services Agency.

The application form is due July 1, but veterans who already receive the exemption do not need to reapply.

The application can be found at tax.iowa.gov/forms under the name Military Service Property Tax Exemption 54-146.

The military veteran exemption is estimated to provide $7 million in property tax reductions statewide.

Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at sgrubermil@registermedia.com or by phone at 515-284-8169. Follow him on Twitter at @sgrubermiller.