House File 2 HOUSE FILE BY RANTS Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the percentage of property valuation in each 2 county and city that is subject to the ad valorem property tax 3 and providing for the Act's applicability. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1136YH 80 6 sc/cf/24 PAG LIN 1 1 Section 1. NEW SECTION. 443.1A DETERMINATION OF 1 2 PERCENTAGE OF ADJUSTED TAXABLE VALUE. 1 3 1. On or before December 15 of each year, the board of 1 4 supervisors of each county and the city council of each city 1 5 shall, by resolution, determine the percentage of the adjusted 1 6 taxable value that will be subject to the ad valorem property 1 7 tax levy payable in the following fiscal year. The same 1 8 percentage shall be applied to all classes of property. The 1 9 board and each city council shall certify such percentage to 1 10 the county auditor. 1 11 Notice of the percentage of adjusted taxable value subject 1 12 to the ad valorem property tax levy payable in the following 1 13 fiscal year for the county and for each city shall be 1 14 published by the auditor in a newspaper of general circulation 1 15 in the county on or before the following March 15. The notice 1 16 shall read as follows: 1 17 "State law allows the (board of supervisors or city 1 18 council, as applicable) to set the percentage of the property 1 19 tax assessed value that will be subject to property tax, after 1 20 application of the state rollback and equalization. For taxes 1 21 due and payable in the fiscal year beginning July 1, (year), 1 22 the percentage of assessed value subject to the (county or 1 23 city, as applicable) property tax levy will be (insert 1 24 percentage)." 1 25 2. For purposes of this section, "adjusted taxable value" 1 26 means the taxable value after the assessment limitation in 1 27 section 441.21 has been applied and after the equalization 1 28 order in section 441.47 has been applied. 1 29 Sec. 2. Section 443.2, unnumbered paragraph 2, Code 2003, 1 30 is amended to read as follows: 1 31 The county auditor shall list the aggregate actual value 1 32 and the aggregate taxable value of all taxable property within 1 33 the county and each political subdivision including property 1 34 subject to the statewide property tax imposed under section 1 35 437A.18 on the tax list in order that the actual value of the 2 1 taxable property within the county or a political subdivision 2 2 may be ascertained and shown by the tax list for the purpose 2 3 of computing the debt=incurring capacity of the county or 2 4 political subdivision. As used in this section, "actual 2 5 value" is the value determined under section 441.21, 2 6 subsections 1 to 3, prior to the reduction to a percentage of 2 7 actual value as otherwise provided in section 441.21 and prior 2 8 to any reduction approved under section 443.1A. "Actual 2 9 value" of property subject to statewide property tax is the 2 10 assessed value under section 437A.18. 2 11 Sec. 3. Section 443.2, Code 2003, is amended by adding the 2 12 following new unnumbered paragraph: 2 13 NEW UNNUMBERED PARAGRAPH. For the county and each city in 2 14 the county, the auditor shall include, in a separate column, 2 15 the percentage of adjusted taxable value that will be subject 2 16 to the ad valorem property tax as that percentage is certified 2 17 by the board of supervisors and the city council of each city 2 18 pursuant to section 443.1A. 2 19 Sec. 4. APPLICABILITY. This Act applies to assessments 2 20 for taxes due and payable in the fiscal year beginning July 1, 2 21 2004, and all subsequent fiscal years. 2 22 EXPLANATION 2 23 This bill requires the county board of supervisors and the 2 24 city council to adopt a resolution on or before December 15 of 2 25 each year indicating the percentage of adjusted taxable value 2 26 that will be subject to the ad valorem property tax in the 2 27 following fiscal year. The boards and city councils shall 2 28 certify the percentage to the county auditor, who is required 2 29 to publish notice of the percentage in a newspaper of general 2 30 circulation in the county. 2 31 The bill defines "adjusted taxable valuation" as the 2 32 property valuation after the assessment limitation (i.e., the 2 33 rollback) and any equalization orders have been applied. 2 34 The bill applies to assessments for taxes due and payable 2 35 in the fiscal year beginning July 1, 2004, and all subsequent 3 1 fiscal years. 3 2 LSB 1136YH 80 3 3 sc/cf/24