BUTCHER, ROBERT D. (1984)(O)(PR)
Topic Code: P106Personal Property Tax Credit (Prop) Document Reference:
IN THE MATTER OF ROBERT D. BUTCHER Morning Sun, Iowsa 52640 PROPERTY TAX CREDITIowa State Board of Tax Reviewiowabtr492ORDER
NOW, this matter came on before the Iowa State Board of Tax Review on September 14, 1984, all members being present. Appearing on behalf of the Iowa Department of Revenue was Barbara Boysen, Attorney at Law and authorized representative. The Appellant did not appear personally, but did submit written materials for review by this Board. After review of the file, entertaining the arguments of the parties and those contained within written material provided by Appellant, and being otherwise fully advised in the premises, this Board finds:1. That on May 13, 1982, Robert D. Butcher did file a claim for property tax credit. Pursuant to said application, claimant received a property tax credit of $712.00.
2. That by Notice dated June 1, 1984, the Department, through its Director, did notify Appellant that said claim had been audited and reduced to a credit of $24.04. That the excess credit of $687.96 was to be reimbursed to the Iowa Department of Revenue.
3. That after the filing of said claim, Appellant did pass away, his estate was probated and closed, and title to his property passed by way of warranty deed.
4. That Section 425.27 states in relevant part,
"if on the audit of any claim for credit or reimbursement under this division, the Director determines the amount of the claim to have been incorrectly calculated or that the claim was not allowable, the Director shall recalculate the claim and notify the claimant of the recalculation or denial and the reasons for it...
if the claim for credit has been paid, the County Treasurer shall repay the amount to the Director and after notification to the claimant of the recalculation or denial of the claim, the County Treasurer shall proceed to collect the tax owed in the same manner as other property taxes due and payable and collected.
5. That as the decedent's estate is closed and title to the property has transferred, the Louisa County Treasurer, here the party actually prosecuting this appeal, claims to be unable to collect the money due.
6. That it seems to this Board that the Louisa County Treasurer is not the real party in interest. That as the Department has filed an answer to the appeal, the Board will entertain said appeal and will ignore the issue here first raised.
7. That the Board is cognisant of the difficulty encountered by the Louisa County Treasurer. This Board did not draft the statute and is not in a position to advise the Treasurer as to its ability to pursue the property for recovery of said moneys due. It is apparent that the legislature did not contemplate such a situation in enacting the currently existing statute. Perhaps a legislative remedy is here called for as this matter effects not only the county, the taxing authorities involved and the estates of individuals dying during similar time periods, but also effects all title transfers in the state of Iowa and those abstracting and passing on adequacy of title in land transactions. Though this Board has sympathy for the position of Louisa County and others similarly situated, based on its interpretation of the above set out portion of the statute, it must side with the Department.
IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that the recomputed claim and denial of the majority of the claimed property tax credit by the Department is upheld, all members concurring. Issued at Des Moines, Iowa, this 20th of December, 1984. STATE BOARD OF TAX REVIEWSteven H. Jacobs Chairman