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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.
Divisions 5 and 6 of House File 718, passed in the 2023 legislative session and signed by the Governor on , establish a homestead tax exemption for claimants 65 years of age or older and increase the military service tax exemption.
Bidders have to pay a registration fee in order to buy properties at tax sale. They purchase the taxes for what is owing and then the hold a lien against the property. It could be for one dollar or thousands of dollars. The tax sale is every third Monday in June.
Sincerely,[Name of Tax Authority Representative] Subject: Notice of Income Tax Obligations Dear [Recipient's Name], I am writing to inform you of your income tax obligations for the tax year [year]. ing to our records, your taxable income for the year was [amount].
What happens if my taxes are not paid by the due date? On the first of each month, late interest at the rate of 1.5% (rounded to the nearest dollar, with a $1.00 minimum) will be added to the unpaid balance of your property taxes. If your taxes remain unpaid, they could be subject to tax sale.
In most cases, you'll get one year and nine months, called a "redemption period," after the sale to redeem the property. (Iowa Code § 447.9.) ("Redeeming" the property means reclaiming a home you would otherwise lose through the tax sale process.)
The first installment is due in September. The taxes must be paid by September 30 to avoid penalty. The second installment is due in March of the following year. The taxes must be paid by March 31.
You have a one-month grace period to pay before you start paying a penalty of 1.5% per month. If a tax payment is owing after April 1 or after October 1, the taxes have become delinquent. You can still pay the property taxes but will now have to pay interest and fees as well.