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Senate File 356 - IntroducedA Bill ForAn Act 1relating to local government property taxes, financial
2authority, operations, and budgets, and including effective
3date and applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2COUNTY PROPERTY TAXES AND BUDGETS
3 Section 1. Section 331.301, subsection 10, paragraph e,
4subparagraph (1), Code 2023, is amended to read as follows:
5(1) (a) The board must follow substantially the
6authorization procedures of section 331.443 to authorize
7a lease or lease-purchase contract for personal property
8which is payable from the general fund. The board must
9follow substantially the authorization procedures of section
10331.443 to authorize a lease or lease-purchase contract for
11real property which is payable from the general fund if the
12principal amount of the lease-purchase contract does not exceed
13the following limits:
14(i) Four Two hundred eighty thousand dollars in a county
15having a population of twenty-five thousand or less.
16(ii) Five Three hundred fifty thousand dollars in a county
17having a population of more than twenty-five thousand but not
18more than fifty thousand.
19(iii) Six Four hundred twenty thousand dollars in a county
20having a population of more than fifty thousand but not more
21than one hundred thousand.
22(iv) Eight Five hundred sixty thousand dollars in a county
23having a population of more than one hundred thousand but not
24more than two hundred thousand.
25(v) One million Seven hundred thousand dollars in a county
26having a population of more than two hundred thousand.
27(b) However, if the principal amount of a lease or
28lease-purchase contract pursuant to this subparagraph (1) is
29less than twenty-five seventeen thousand five hundred dollars,
30the board may authorize the lease or lease-purchase contract
31without following the authorization procedures of section
32331.443.
33 Sec. 2. Section 331.402, subsection 3, paragraph d,
34subparagraph (1), subparagraph divisions (a), (b), (c), (d),
35and (e), Code 2023, are amended to read as follows:
-1- 1(a) Four Two hundred eighty thousand dollars in a county
2having a population of twenty-five thousand or less.
3(b) Five Three hundred fifty thousand dollars in a county
4having a population of more than twenty-five thousand but not
5more than fifty thousand.
6(c) Six Four hundred twenty thousand dollars in a county
7having a population of more than fifty thousand but not more
8than one hundred thousand.
9(d) Eight Five hundred sixty thousand dollars in a county
10having a population of more than one hundred thousand but not
11more than two hundred thousand.
12(e) One million Seven hundred thousand dollars in a county
13having a population of more than two hundred thousand.
14 Sec. 3. Section 331.403, subsection 1, Code 2023, is amended
15to read as follows:
161. Not later than December 1 of each year on forms and
17pursuant to instructions prescribed by the department of
18management, a county shall prepare an annual financial report
19showing for each county fund the financial condition as of
20June 30 and the results of operations for the year then ended.
21Copies of the report shall be maintained as a public record at
22the auditor’s office and shall be filed with the director of
23the department of management and with the auditor of state by
24December 1. A summary of the report, in a form prescribed by
25the director, shall be published by each county not later than
26December 1 of each year in one or more newspapers which meet
27the requirements of section 618.14. Beginning with the annual
28financial report filed by December 1, 2024, each report shall
29include a list of bonds, notes, or other obligations issued by
30the county during the preceding fiscal year payable from any
31source, including the amount of the issuance, the project or
32purpose of the issuance, whether the issuance was approved
33at election or eligible to be subject to a petition for an
34election, and identification of issuances from the fiscal year
35or prior fiscal years related to the same project or purpose.
-2-1 Sec. 4. Section 331.423, Code 2023, is amended to read as
2follows:
3331.423 Basic levies — maximums — adjustments.
4Annually, the board may certify basic levies, subject to the
5following limits:
61. For general county services,:
7a. For fiscal years beginning before July 1, 2024,three
8dollars and fifty cents per thousand dollars of the assessed
9value of all taxable property in the county.
10b. For the fiscal year beginning July 1, 2024, a levy rate
11per thousand dollars of taxable value equal to the sum of three
12dollars and fifty cents plus the sum of the amount per thousand
13dollars of taxable value levied by the county under section
14331.424, subsection 1, paragraph “a”, subparagraph (6), Code
152023, for the fiscal year beginning July 1, 2023, and the sum
16of the amount per thousand dollars of taxable value levied for
17general county services under section 331.426, Code 2023, for
18the fiscal year beginning July 1, 2023.
19c. (1) For each fiscal year beginning on or after July 1,
202025, subject to paragraph “d”, the greater of three dollars
21and fifty cents per thousand dollars of assessed value used to
22calculate taxes for the budget year and the amount determined
23under paragraph “b”, as adjusted under subparagraph (2), if
24applicable.
25(2) If the total assessed value used to calculate taxes for
26general county services for the budget year exceeds one hundred
27two and one-half percent of the total assessed value used to
28calculate taxes for the current fiscal year, the levy rate per
29thousand dollars determined under paragraph “b”, as previously
30adjusted under this subparagraph, if applicable, shall be
31reduced to a rate per one thousand dollars of assessed value
32that is equal to one thousand multiplied by the quotient of the
33current fiscal year’s actual property tax dollars certified for
34levy under this subsection 1 divided by one hundred two and
35one-half percent of the total assessed value used to calculate
-3-1taxes for the current fiscal year.
2d. In addition to the limitation under paragraph “c”,
3for fiscal years beginning on or after July 1, 2025, if the
4county’s actual levy rate imposed under this subsection for the
5current fiscal year is three dollars and fifty cents or less
6per thousand dollars of assessed value and the total assessed
7value used to calculate taxes for the budget year exceeds one
8hundred three and twenty-five hundredths percent of the total
9assessed value used to calculate taxes for the current fiscal
10year, the levy rate imposed under this subsection for the
11budget year shall not exceed a rate per one thousand dollars
12of assessed value that is equal to one thousand multiplied by
13the quotient of the current fiscal year’s actual property tax
14dollars certified for levy under this subsection 1 divided by
15one hundred three and twenty-five hundredths percent of the
16total assessed value used to calculate taxes for the current
17fiscal year.
182. For rural county services,:
19a. For fiscal years beginning before July 1, 2024,three
20dollars and ninety-five cents per thousand dollars of the
21assessed value of taxable property in the county outside of
22incorporated city areas.
23b. For the fiscal year beginning July 1, 2024, a levy rate
24per thousand dollars of taxable value equal to the sum of three
25dollars and ninety-five cents plus the sum of the amount per
26thousand dollars of taxable value levied for rural county
27services under section 331.426, Code 2023, for the fiscal year
28beginning July 1, 2023.
29c. (1) For each fiscal year beginning on or after July 1,
302025, subject to paragraph “d”, the greater of three dollars
31and ninety-five cents per thousand dollars of assessed value
32used to calculate taxes for the budget year and the amount
33determined under paragraph “b”, as adjusted under subparagraph
34(2), if applicable.
35(2) If the total assessed value used to calculate taxes
-4-1for rural county services under this subsection for the budget
2year exceeds one hundred two and one-half percent of the total
3assessed value used to calculate taxes for the current fiscal
4year, the levy rate per thousand dollars determined under
5paragraph “b”, as previously adjusted under this subparagraph,
6if applicable, shall be reduced to a rate per one thousand
7dollars of assessed value that is equal to one thousand
8multiplied by the quotient of the current fiscal year’s actual
9property tax dollars certified for levy under this subsection 2
10divided by one hundred two and one-half percent of the total
11assessed value used to calculate taxes for the current fiscal
12year.
13d. In addition to the limitation under paragraph “c”,
14for fiscal years beginning on or after July 1, 2025, if the
15county’s actual levy rate imposed under this subsection for
16the current fiscal year is three dollars and ninety-five
17cents or less per thousand dollars of assessed value and the
18total assessed value used to calculate taxes for the budget
19year exceeds one hundred three and twenty-five hundredths
20percent of the total assessed value used to calculate taxes
21for the current fiscal year, the levy rate imposed under this
22subsection for the budget year shall not exceed a rate per
23one thousand dollars of assessed value that is equal to one
24thousand multiplied by the quotient of the current fiscal
25year’s actual property tax dollars certified for levy under
26this subsection 2 divided by one hundred three and twenty-five
27hundredths percent of the total assessed value used to
28calculate taxes for the current fiscal year.
293. For purposes of this section:
30a. “Budget year” means the same as defined in section
31331.433A, subsection 1.
32b. “Current fiscal year” means the same as defined in
33section 331.433A, subsection 1.
34 Sec. 5. Section 331.424, subsection 1, paragraph a,
35subparagraph (6), Code 2023, is amended by striking the
-5-1subparagraph.
2 Sec. 6. Section 331.426, Code 2023, is amended to read as
3follows:
4331.426 Additions to basic levies.
51. If a county has unusual circumstances a natural disaster,
6creating a need for additional property taxes for general
7county services or rural county services in excess of the
8amount that can be raised by the levies otherwise permitted
9under sections 331.423 through 331.425, the board may certify
10additions to each of the basic levies as follows: by complying
11with the provisions of subsection 2.
121. The basis for justifying an additional property tax under
13this section must be one or more of the following:
14a. An unusual increase in population as determined by the
15preceding certified federal census.
16b. A natural disaster or other emergency.
17c. Unusual problems relating to major new functions required
18by state law.
19d. Unusual staffing problems.
20e. Unusual need for additional moneys to permit continuance
21of a program which provides substantial benefit to county
22residents.
23f. Unusual need for a new program which will provide
24substantial benefit to county residents, if the county
25establishes the need and the amount of necessary increased
26cost.
27g. A reduced or unusually low growth rate in the property
28tax base of the county.
292. a. The public notice of a hearing on the county budget
30required by section 331.434, subsection 3, shall include the
31following additional information for the applicable class of
32services related to the natural disaster:
33(1) A statement that the accompanying budget summary
34requires a proposed basic property tax rate exceeding the
35maximum rate established by the general assembly.
-6- 1(2) A comparison of the proposed basic tax rate with the
2maximum basic tax rate, and the dollar amount of the difference
3between the proposed rate and the maximum rate.
4(3) A statement of the major reasons resulting from the
5natural disaster for the difference between the proposed basic
6tax rate and the maximum basic tax rate.
7b. The information required by this subsection shall be
8published in a conspicuous form as prescribed by the committee.
9 Sec. 7. Section 331.433A, subsection 5, paragraph b, Code
102023, is amended to read as follows:
11b. (1) If the sum of the maximum property tax dollars
12for the budget year specified in the resolution for either
13general county services or for rural county services under the
14levies specified in subsection 2, paragraphs “a” and “b”, as
15applicable, exceeds one hundred two percent of the sum of the
16current fiscal year’s actual property taxes certified for levy
17for general county services or rural county services under the
18levies specified in subsection 2, paragraphs “a” and “b”, as
19applicable, the board shall be required to adopt the resolution
20by a two-thirds majority of the membership of the board.
21(2) (a) For the budget year beginning July 1, 2024, the
22amount of the current fiscal year’s actual property taxes
23certified for levy for general county services shall include
24amounts certified for levy under section 331.424, subsection 1,
25paragraph “a”, subparagraph (6), Code 2023, and under section
26331.426, Code 2023.
27(b) For the budget year beginning July 1, 2024, the amount
28of the current fiscal year’s actual property taxes certified
29for levy for rural county services shall include amounts
30certified for levy under Code section 331.426, Code 2023.
31 Sec. 8. Section 331.441, subsection 2, paragraph b,
32subparagraph (5), subparagraph divisions (a), (b), (c), (d),
33and (e), Code 2023, are amended to read as follows:
34(a) Six Four hundred twenty thousand dollars in a county
35having a population of twenty-five thousand or less.
-7- 1(b) Seven Five hundred fifty twenty-five thousand dollars
2in a county having a population of more than twenty-five
3thousand but not more than fifty thousand.
4(c) Nine Six hundred thirty thousand dollars in a county
5having a population of more than fifty thousand but not more
6than one hundred thousand.
7(d) One million two Eight hundred forty thousand dollars in
8a county having a population of more than one hundred thousand
9but not more than two hundred thousand.
10(e) One million five hundred fifty thousand dollars in a
11county having a population of more than two hundred thousand.
12 Sec. 9. Section 331.441, subsection 2, paragraph c,
13subparagraph (11), Code 2023, is amended by striking the
14subparagraph.
15 Sec. 10. Section 331.442, subsection 5, paragraph a,
16subparagraphs (1), (2), and (3), Code 2023, are amended to read
17as follows:
18(1) In counties having a population of twenty thousand
19or less, in an amount of not more than one hundred seventy
20 thousand dollars.
21(2) In counties having a population of over twenty thousand
22and not over fifty thousand, in an amount of not more than two
23 one hundred forty thousand dollars.
24(3) In counties having a population of over fifty thousand,
25in an amount of not more than three two hundred ten thousand
26dollars.
27 Sec. 11. EFFECTIVE DATE. This division of this Act takes
28effect July 1, 2024.
29 Sec. 12. APPLICABILITY. This division of this Act applies
30to taxes and budgets for fiscal years beginning on or after
31July 1, 2024.
32DIVISION II
33CITY PROPERTY TAXES AND BUDGETS
34 Sec. 13. Section 24.48, subsection 5, Code 2023, is amended
35by adding the following new paragraph:
-8-1 NEW PARAGRAPH. c. For budgets for fiscal years beginning on
2or after July 1, 2024, if the political subdivision is a city,
3a suspension of the statutory property tax levy limitations
4under this section shall only be approved by the state appeal
5board in the event of a natural disaster.
6 Sec. 14. Section 28M.5, subsection 1, Code 2023, is amended
7to read as follows:
81. The commission, with the approval of the board of
9supervisors of participating counties and the city council
10of participating cities in the chapter 28E agreement, may
11levy annually a tax not to exceed ninety-five cents per
12thousand dollars of the assessed value of all taxable property
13in a regional transit district to the extent provided in
14this section. The chapter 28E agreement may authorize the
15commission to levy the tax at different rates within the
16participating cities and counties in amounts sufficient to meet
17the revenue responsibilities of such cities and counties as
18allocated in the budget adopted by the commission. However,
19for a city participating in a regional transit district, the
20total of all the tax levies imposed in the city pursuant
21to section 384.12, subsection 10 1, and this section shall
22not exceed the aggregate of ninety-five cents per thousand
23dollars of the assessed value of all taxable property in the
24participating city.
25 Sec. 15. Section 37.8, Code 2023, is amended to read as
26follows:
2737.8 Levy for Cost of development, operation, and
28 maintenance.
29For the development, operation, and maintenance of a
30building or monument constructed, purchased, or donated under
31this chapter, a city may levy a tax not to exceed eighty-one
32cents per thousand dollars of assessed value on all the taxable
33property within the city, as provided in section 384.12,
34subsection 2 utilize taxes levied under section 384.1.
35 Sec. 16. Section 357G.8, Code 2023, is amended to read as
-9-1follows:
2357G.8 Election on proposed levy and of candidates for
3trustees — funding of operations.
41. When a preliminary plat has been approved by the council,
5an election shall be held within the district within sixty days
6to approve or disapprove the levy of an initial tax of not
7more than one dollar per thousand dollars of assessed value
8on all the taxable property within the district and to choose
9candidates for the offices of trustees of the district. The
10ballot shall set out the reason for the tax and the amount
11needed. The tax shall be set to raise only the amount needed.
12 Notice of the election, including the time and place of holding
13the election, shall be given as provided in section 357G.4.
14The vote shall be by ballot which shall state clearly the
15proposition to be voted upon and any registered voter residing
16within the district at the time of the election may vote. It
17is not mandatory for the county commissioner of elections
18to conduct elections held pursuant to this chapter, but the
19elections shall be conducted in accordance with chapter 49
20where not in conflict with this chapter. Judges shall be
21appointed to serve without pay by the council from among the
22registered voters of the district to be in charge of the
23election. The proposition is approved if sixty percent of
24those voting on the proposition vote in favor of it.
252. a. If the tax authorized under subsection 1 is
26insufficient to provide the services authorized under this
27chapter, the trustees may levy an additional annual tax, at
28a rate necessary to provide the authorized services, if such
29authority for an additional tax is approved at election held
30separately and after the election held under subsection 1.
31The district’s operations shall be funded from general fund
32property tax revenues certified by the city and levied under
33section 384.1.
34b. By resolution, the council may submit to the registered
35voters of the district the proposition of levying the
-10-1additional annual tax according to the election procedures
2under subsection 1.
3c. (1) After adoption of the resolution under paragraph
4“b”, the The board of trustees shall coordinate efforts with
5the local emergency medical services agencies to establish
6a district advisory council to assist in researching and
7assessing the service needs of the district and guiding
8implementation of services in the district within a council
9structure.
10(2) The district advisory council established under
11subparagraph (1) shall recommend to the board of trustees
12an amount of funding to be specified on the ballot for the
13election held under this subsection 2 to be requested from the
14city to fund the district and shall annually assess and review
15the emergency medical services needs of the district and shall
16include the results of such review and assessment in an annual
17report filed with the board of trustees. The annual report
18shall be publicly available upon filing with the board of
19trustees. The board of trustees shall receive public comment
20regarding the report at one or more meetings of the board
21of trustees. Any meeting of the board of trustees at which
22public comment on the annual report is heard shall be at least
23fourteen days following the date the annual report is filed
24with the board of trustees.
25d. The proposition is adopted if a majority of those
26voting on the proposition at the election approves it. If
27the proposition is approved at election, the trustees may
28impose the additional annual tax beginning with the fiscal
29year beginning July 1 following the election at which the
30proposition was approved. The proposition is not affected by a
31change in the boundaries of the district.
32e. Discontinuance of the authority to impose an additional
33tax under this chapter shall be by petition and election.
34Upon petition of twenty-five percent of the resident eligible
35electors, the board of trustees shall submit to the voters
-11-1of the district the question of whether to discontinue the
2authority to impose the additional tax according to the
3election procedures under subsection 1. If a majority of those
4voting on the question of discontinuance of the trustees’
5authority to impose the tax favors discontinuance, the trustees
6shall not impose the additional tax for any fiscal year
7beginning after the election approving the discontinuance,
8unless imposition is subsequently again authorized at election.
9Following discontinuance of the authority to impose the
10additional tax, authority to reimpose the additional tax
11requires approval in accordance with this subsection.
12 Sec. 17. Section 357G.10, Code 2023, is amended to read as
13follows:
14357G.10 Trustees’ powers.
15The trustees may purchase, own, rent, or maintain emergency
16medical services apparatus or equipment within the state or
17outside the territorial jurisdiction and boundary limits of
18this state, provide housing for such apparatus and equipment,
19provide emergency medical service and facilities, and may
20request the city certify for levy an amount of taxes as
21provided in section 357G.8. The trustees may purchase
22material, employ emergency medical service and other personnel,
23and may perform all other acts necessary to properly maintain
24and operate the district. The trustees may contract with any
25other city or county or public or private agency under chapter
2628E for the purpose of providing emergency medical services
27under this chapter. The trustees are allowed necessary
28expenses in the discharge of their duties, but they shall not
29receive a salary.
30 Sec. 18. Section 357G.12, Code 2023, is amended to read as
31follows:
32357G.12 Dissolution of district.
33Upon petition of thirty-five percent of the resident
34eligible electors, the council may dissolve a district and
35dispose of any remaining property, the proceeds of which shall
-12-1first be applied against outstanding obligations and any
2balance shall be applied to tax credit of property owners of
3the district. The council shall continue to levy a tax after
4dissolution of a district, of not to exceed twenty-seven cents
5per thousand dollars of assessed value on all the taxable
6property of the district, appropriate taxes levied under
7section 384.1 until all outstanding obligations of the district
8are paid.
9 Sec. 19. Section 357G.13, Code 2023, is amended to read as
10follows:
11357G.13 Adding property to district.
12Any property in an unincorporated area contiguous to the
13boundaries of an established district which is annexed by the
14city shall be included in the district. The tax levy for the
15next year shall be applied to the property and on the first day
16of the next fiscal year, the property shall become a part of
17the district.
18 Sec. 20. Section 357J.18, Code 2023, is amended to read as
19follows:
20357J.18 Transition — emergency medical services district
21taxes discontinued.
22When the boundary lines of the emergency response district
23include all or a portion of an emergency medical services
24district under chapter 357F or chapter 357G and the emergency
25response district has certified a tax to be levied on property
26located within the emergency medical services district for
27the purpose of emergency medical service, the emergency
28medical services district trustees shall no longer levy the
29taxes authorized in section 357F.8 or section 357G.8 utilize
30tax revenue levied under section 384.1 for emergency medical
31services district purposes in that portion of such emergency
32medical services district that is provided services by the
33emergency response district. Any indebtedness incurred by
34an emergency medical services district under chapter 357F
35or chapter 357G for a service now provided by the emergency
-13-1response district shall be assumed by the emergency response
2district.
3 Sec. 21. Section 384.1, Code 2023, is amended to read as
4follows:
5384.1 Taxes certified.
61. A city may certify taxes to be levied by the county
7on all taxable property within the city limits, for all city
8government purposes. However, the
92. a. Notwithstanding subsection 3, thetax levied by
10a city on tracts of land and improvements thereon used and
11assessed for agricultural or horticultural purposes, shall
12not exceed three dollars and three-eighths cents per thousand
13dollars of assessed value in any year. Improvements located
14on such tracts of land and not used for agricultural or
15horticultural purposes and all residential dwellings are
16subject to the same rate of tax levied by the city on all other
17taxable property within the city. A
183. a. For fiscal years beginning before July 1, 2024, a
19city’s tax levy for the general fund shall not exceed eight
20dollars and ten cents per thousand dollars of taxable assessed
21 value used to calculate taxes in any tax year, except for the
22levies authorized in section 384.12.
23b. For the fiscal year beginning July 1, 2024, a city’s
24tax levy for the general fund, except for levies authorized in
25section 384.12, shall not exceed the sum of eight dollars and
26ten cents per thousand dollars of taxable value plus the sum of
27the following for the city, as applicable:
28(1) The amount per thousand dollars of taxable value levied
29by or on behalf of the city under section 384.8, Code 2023, for
30the fiscal year beginning July 1, 2023.
31(2) The total amount per thousand dollars of taxable value
32levied by or on behalf of the city under section 384.12,
33subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, 18,
34and 20, Code 2023, for the fiscal year beginning July 1, 2023.
35(3) The amount per thousand dollars of taxable value levied
-14-1by the city under section 24.48, Code 2023, for the fiscal year
2beginning July 1, 2023.
3c. (1) For each fiscal year beginning on or after July
41, 2025, subject to paragraph “d”, a city’s tax levy for the
5general fund, except for levies authorized in section 384.12,
6shall not exceed in any tax year the greater of eight dollars
7and ten cents per thousand dollars of assessed value used to
8calculate taxes for the budget year and the amount determined
9under paragraph “b”, as adjusted under subparagraph (2), if
10applicable.
11(2) If the total assessed value used to calculate taxes
12for the budget year exceeds one hundred two and one-half
13percent of the total assessed value used to calculate taxes for
14the current fiscal year, the levy rate per thousand dollars
15determined under paragraph “b”, as previously adjusted under
16this subparagraph, if applicable, shall be reduced to a rate
17per one thousand dollars of assessed value that is equal to
18one thousand multiplied by the quotient of the current fiscal
19year’s actual property tax dollars certified for levy under
20this section divided by one hundred two and one-half percent
21of the total assessed value used to calculate taxes for the
22current fiscal year.
23d. In addition to the limitation under paragraph “c”, for
24fiscal years beginning on or after July 1, 2025, if the city’s
25actual levy rate imposed under this section for the current
26fiscal year is eight dollars and ten cents or less per thousand
27dollars of assessed value and the total assessed value used to
28calculate taxes for the budget year exceeds one hundred three
29and twenty-five hundredths percent of the total assessed value
30used to calculate taxes for the current fiscal year, the levy
31rate imposed under this section for the budget year shall not
32exceed a rate per one thousand dollars of assessed value that
33is equal to one thousand multiplied by the quotient of the
34current fiscal year’s actual property tax dollars certified
35for levy under this section divided by one hundred three and
-15-1twenty-five hundredths percent of the total assessed value used
2to calculate taxes for the current fiscal year.
34. For purposes of this section:
4a. “Budget year” means the same as defined in section
5384.15A, subsection 1.
6b. “Current fiscal year” means the same as defined in
7section 384.15A, subsection 1.
8 Sec. 22. Section 384.12, Code 2023, is amended to read as
9follows:
10384.12 Additional taxes.
11A city may certify, for the general fund levy, taxes which
12are not subject to the limit provided in section 384.1, and
13which are in addition to any other moneys the city may wish to
14spend for such purposes, as follows:
151. A tax not to exceed thirteen and one-half cents
16per thousand dollars of assessed value for the support of
17instrumental or vocal musical groups, one or more organizations
18which have tax-exempt status under section 501(c)(3) of
19the Internal Revenue Code and are organized and operated
20exclusively for artistic and cultural purposes, or any of these
21purposes, subject to the following:
22a. Upon receipt of a petition valid under the provisions of
23section 362.4, the council shall submit to the voters at the
24next regular city election the question of whether a tax shall
25be levied.
26b. If a majority approves the levy, it may be imposed.
27c. The levy can be eliminated by the same procedure of
28petition and election.
29d. A tax authorized by an election held prior to the
30effective date of the city code may be continued until
31eliminated by the council, or by petition and election.
322. A tax not to exceed eighty-one cents per thousand dollars
33of assessed value for development, operation, and maintenance
34of a memorial building or monument, subject to the provisions
35of subsection 1.
-16- 13. A tax not to exceed thirteen and one-half cents per
2thousand dollars of assessed value for support of a symphony
3orchestra, subject to the provisions of subsection 1.
44. A tax not to exceed twenty-seven cents per thousand
5dollars of assessed value for the operation of cultural and
6scientific facilities, subject to the provisions of subsection
71, except that the question may be submitted on the council’s
8own motion.
95. A tax to aid in the construction of a county bridge,
10subject to the provisions of subsection 1, except that the
11question must be submitted at a special election. The expense
12of a special election under this subsection must be paid by the
13county. The notice of the special election must include full
14details of the proposal, including the location of the proposed
15bridge, the rate of tax to be levied, and all other conditions.
166. A tax to aid a company incorporated under the laws of
17this state in the construction of a highway or combination
18bridge across any navigable boundary river of this state,
19commencing or terminating in the city and suitable for use
20as highway, or for both highway and railway purposes. This
21tax levy is subject to the provisions of subsections 1 and 5.
22The levy is limited to one dollar and thirty-five cents per
23thousand dollars of the assessed value of taxable property in
24the city. The estimated cost of the bridge must be at least
25ten thousand dollars, and the city aid may not exceed one-half
26of the estimated cost. The notice of the special election
27must include the name of the corporation to be aided, and all
28conditions required of the corporation. Tax moneys received
29for this purpose may not be paid over by the county treasurer
30until the city has filed a statement that the corporation has
31complied with all conditions.
327. If a tax has been voted for aid of a bridge under
33subsection 6, a further tax may be voted for the purpose of
34purchasing the bridge, subject to the provisions of subsection
351. The levy under this subsection is limited to three dollars
-17-1and thirty-seven and one-half cents per thousand dollars of the
2assessed value of the taxable property in the city, payable in
3not less than ten annual installments.
48. A tax for the purpose of carrying out the terms of a
5contract for the use of a bridge by a city situated on a river
6over which a bridge has been built. The tax may not exceed
7sixty-seven and one-half cents per thousand dollars of assessed
8value each year.
99. A tax for aid to a public transportation company,
10subject to the procedure provided in subsection 1, except the
11question must be submitted at a special election. The levy is
12limited to three and three-eighths cents per thousand dollars
13of assessed value. In addition to any other conditions the
14following requirements must be met before moneys received for
15this purpose may be paid over by the county treasurer:
16a. The public transportation company shall provide the city
17with copies of state and federal income tax returns for the
18five years preceding the year for which payment is contemplated
19or for such lesser period of time as the company has been in
20operation.
21b. The city shall, in any given year, be authorized to pay
22over only such sums as will yield not to exceed two percent
23of the public transportation company’s investment as the same
24is valued in its tax depreciation schedule, provided that
25corporate profits and losses for the five preceding years or
26for such lesser period of time as the company has been in
27operation shall not average in excess of a two percent net
28return. Taxes levied under this subsection may not be used to
29subsidize losses incurred prior to the election required by
30this subsection.
3110. 1. A tax for the operation and maintenance of a
32municipal transit system or for operation and maintenance of a
33regional transit district, and for the creation of a reserve
34fund for the system or district, in an amount not to exceed
35ninety-five cents per thousand dollars of assessed value each
-18-1year, when the revenues from the transit system or district are
2insufficient for such purposes.
311. If a city has entered into a lease of a building or
4complex of buildings to be operated as a civic center, a tax
5sufficient to pay the installments of rent and for maintenance,
6insurance and taxes not included in the lease rental payments.
712. A tax not to exceed thirteen and one-half cents per
8thousand dollars of assessed value each year for operating and
9maintaining a civic center owned by a city.
1013. A tax not to exceed six and three-fourths cents per
11thousand dollars of assessed value for planning a sanitary
12disposal project.
1314. 2. A tax not to exceed twenty-seven cents per thousand
14dollars of assessed value each year for an aviation authority
15as provided in section 330A.15.
1615. A tax not to exceed six and three-fourths cents per
17thousand dollars of assessed value each year for a levee
18improvement fund in special charter cities as provided in
19section 420.155.
2016. A tax not to exceed twenty and one-half cents per
21thousand dollars of assessed value each year to maintain an
22institution received by gift or devise, subject to an election
23as required under subsection 1.
2417. 3. A tax to pay the premium costs on tort liability
25insurance, property insurance, and any other insurance that
26may be necessary in the operation of the city, the costs of a
27self-insurance program, the costs of a local government risk
28pool and amounts payable under any insurance agreements to
29provide or procure such insurance, self-insurance program, or
30local government risk pool.
3118. A tax to fund an emergency medical services district
32under chapter 357G.
3319. 4. A tax that exceeds any tax levy limit within this
34chapter, provided the question has been submitted at a special
35levy election and received a simple majority of the votes cast
-19-1on the proposition to authorize the enumerated levy limit to be
2exceeded for the proposed budget year.
3a. The election may be held as specified in this subsection
4if notice is given by the city council, not later than
5forty-six days before the first Tuesday in March, to the county
6commissioner of elections that the election is to be held.
7b. An election under this subsection shall be held on
8the first Tuesday in March and be conducted by the county
9commissioner of elections in accordance with the law.
10c. The ballot question shall be in substantially the
11following form:
12WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........?
13(Vote for only one of the following choices.)
14CHANGE LEVY AMOUNT ...
15Add to the existing levy amount a tax for the purpose of
16.......... (state purpose of proposed levy) at a rate of ...
17(rate) which will provide an additional $.... (amount).
18KEEP CURRENT LEVY ...
19Continue under the current maximum rate of ..., providing
20$.... (amount).
21d. The commissioner of elections conducting the election
22shall notify the city officials and other county auditors where
23applicable, of the results within two days of the canvass which
24shall be held on the second day that is not a holiday following
25the special levy election, and beginning no earlier than 1:00
26p.m.on that day.
27e. Notice of the election shall be published twice in
28accordance with the provisions of section 362.3, except that
29the first such notice shall be given at least two weeks before
30the election.
31f. The cost of the election shall be borne by the city.
32g. The election provisions of this subsection shall
33supersede other provisions for elections only to the extent
34necessary to comply with the provisions of this subsection.
35h. The provisions of this subsection apply to all cities,
-20-1however organized, including special charter cities which may
2adopt ordinances where necessary to carry out these provisions.
3i. The council shall certify the city’s budget with the tax
4askings not exceeding the amount approved by the special levy
5election.
620. A tax not to exceed twenty-seven cents per thousand
7dollars of assessed value for support of a public library,
8subject to petition and referendum requirements of subsection
91, except that if a majority approves the levy, it shall be
10imposed.
1121. 5. A tax for the support of a local emergency
12management commission established pursuant to chapter 29C.
13 Sec. 23. Section 384.15A, subsection 2, Code 2023, is
14amended to read as follows:
152. For budget years beginning on or after July 1, 2020,
16prior to the period of time for distribution of the budget
17under section 384.16, subsection 2, the council shall adopt a
18resolution establishing the total maximum property tax dollars
19that may be certified for levy that includes taxes for city
20government purposes under section 384.1, for the city’s trust
21and agency fund under section 384.6, subsection 1, for the
22city’s emergency fund for fiscal years beginning before July
231, 2024, under section 384.8, and Code 2023, for fiscal years
24beginning before July 1, 2024, the levies authorized under
25section 384.12, subsections 8, 10, 11, 12, 13, 17, and 21, Code
262023, and for fiscal years beginning on or after July 1, 2024,
27the levies authorized under section 384.12, subsections 1,
283, and 5, but excluding additions approved at election under
29section 384.12, subsection 19 4.
30 Sec. 24. Section 384.15A, subsection 5, paragraph b, Code
312023, is amended to read as follows:
32b. (1) If the sum of the maximum property tax dollars for
33the budget year specified in the resolution under the levies
34specified in subsection 2 exceeds one hundred two percent of
35the sum of the current fiscal year’s actual property taxes
-21-1certified for levy under the levies specified in subsection
22, the council shall be required to adopt the resolution by a
3two-thirds majority of the membership of the council.
4(2) For the budget year beginning July 1, 2024, the amount
5of the current fiscal year’s actual property taxes certified
6for levy shall include amounts certified for levy under section
7384.12, subsections 8, 10, 11, 12, 13, and 17, Code 2023, under
8section 24.48, Code 2023, and under section 384.8, Code 2023.
9 Sec. 25. Section 384.22, subsection 1, Code 2023, is amended
10to read as follows:
111. Not later than December 1 of each year, a city shall
12publish an annual financial report as provided in section
13362.3 containing a summary for the preceding fiscal year of
14all collections and receipts, all accounts due the city, and
15all expenditures, the current public debt of the city, and the
16legal debt limit of the city for the current fiscal year. The
17annual financial report shall be prepared on forms and pursuant
18to instructions prescribed by the auditor of state. Beginning
19with the annual financial report published by December 1, 2024,
20each report shall include a list of bonds, notes, or other
21obligations issued by the city during the preceding fiscal
22year payable from any source, including the amount of the
23issuance, the project or purpose of the issuance, whether the
24issuance was approved at election or eligible to be subject to
25a petition for an election, and identification of issuances
26from the fiscal year or prior fiscal years related to the same
27project or purpose.
28 Sec. 26. Section 384.24, subsection 4, paragraph i, Code
292023, is amended by striking the paragraph.
30 Sec. 27. Section 384.24A, subsection 4, paragraph a,
31subparagraphs (1), (2), and (3), Code 2023, are amended to read
32as follows:
33(1) Four Two hundred eighty thousand dollars in a city
34having a population of five thousand or less.
35(2) Seven Four hundred ninety thousand dollars in a city
-22-1having a population of more than five thousand but not more
2than seventy-five thousand.
3(3) One million Seven hundred thousand dollars in a city
4having a population of more than seventy-five thousand.
5 Sec. 28. Section 384.26, subsection 5, paragraph a,
6subparagraphs (1), (2), and (3), Code 2023, are amended to read
7as follows:
8(1) In cities having a population of five thousand or less,
9in an amount of not more than four two hundred eighty thousand
10dollars.
11(2) In cities having a population of more than five thousand
12and not more than seventy-five thousand, in an amount of not
13more than seven four hundred ninety thousand dollars.
14(3) In cities having a population in excess of seventy-five
15thousand, in an amount of not more than one million seven
16hundred thousand dollars.
17 Sec. 29. Section 384.110, Code 2023, is amended to read as
18follows:
19384.110 Insurance, self-insurance, and risk pooling funds.
20A city may credit funds to a fund or funds for the purposes
21authorized by section 364.4, subsection 5; section 384.12,
22subsection 17 3; or section 384.24, subsection 3, paragraph “s”.
23Moneys credited to the fund or funds, and interest earned on
24such moneys, shall remain in the fund or funds until expended
25for purposes authorized by section 364.4, subsection 5; section
26384.12, subsection 17 3; or section 384.24, subsection 3,
27paragraph “s”.
28 Sec. 30. REPEAL. Section 384.8, Code 2023, is repealed.
29 Sec. 31. EFFECTIVE DATE. This division of this Act takes
30effect July 1, 2024.
31 Sec. 32. APPLICABILITY. This division of this Act applies
32to taxes and budgets for fiscal years beginning on or after
33July 1, 2024.
34DIVISION III
35public education and recreation tax levy
-23-1 Sec. 33. Section 276.1, Code 2023, is amended to read as
2follows:
3276.1 Title.
4This section, sections 276.2 through 276.5, and sections
5276.8 through 276.11 276.10 of this chapter shall be known and
6may be cited as the “Iowa Community Education Act”.
7 Sec. 34. Section 276.3, unnumbered paragraph 1, Code 2023,
8is amended to read as follows:
9As used in sections 276.1, 276.2, this section, sections
10276.4, 276.5, and sections 276.8 through 276.11 276.10, unless
11the context otherwise requires:
12 Sec. 35. Section 276.10, subsection 1, Code 2023, is amended
13to read as follows:
141. The board of directors of a local school district
15may establish a community education program for schools in
16the district and provide for the general supervision of the
17program. Financial support for the program shall may be
18provided from funds raised pursuant to chapter 300 received by
19the school district under chapter 423F and from any private
20funds and any federal funds made available for the purpose of
21implementing this chapter. The program which recognizes that
22the schools belong to the people and which shall be centered
23in the schools may include but shall not be limited to the use
24of the school facilities day and night, year round including
25weekends and regular school vacation periods for educational,
26recreational, cultural, and other community services and
27programs for all age, ethnic, and socioeconomic groups residing
28in the community.
29 Sec. 36. Section 278.1, subsection 1, paragraph e, Code
302023, is amended to read as follows:
31e. Direct the transfer of any surplus in the debt service
32fund, physical plant and equipment levy fund, or other capital
33project funds, or public education and recreation levy fund to
34the general fund.
35 Sec. 37. Section 298A.6, Code 2023, is amended to read as
-24-1follows:
2298A.6 Public education and recreation levy fund.
3The public education and recreation levy fund is a special
4revenue fund. A public education and recreation levy fund
5must be established in any school corporation which levies
6 levied the tax authorized under section 300.2, Code 2023, or
7which receives received revenue from a chapter 28E agreement
8authorized under section 300.1, Code 2023. Moneys available in
9the fund at the conclusion of the fiscal year beginning July 1,
102026, and ending June 30, 2027, shall be expended by the school
11corporation for the purposes authorized under chapter 300, Code
122023.
13 Sec. 38. Section 300.2, Code 2023, is amended by adding the
14following new subsection:
15 NEW SUBSECTION. 4. a. A levy under this chapter shall not
16be approved by the voters on or after the effective date of
17this section of this division of this Act.
18b. If the levy has not been discontinued under section
19300.3, the authorization to impose the levy under this chapter
20shall terminate July 1, 2027.
21c. Notwithstanding subsection 2, including a proposition
22approved at an election held before the effective date of
23this section of this division of this Act, the rate of a levy
24imposed by a board of directors under this chapter for the
25fiscal year beginning July 1, 2026, shall not exceed one-half
26of the levy rate imposed by the board of directors for the
27fiscal year beginning July 1, 2025.
28 Sec. 39. Section 423F.3, subsection 1, paragraph c, Code
292023, is amended by striking the paragraph.
30 Sec. 40. Section 423F.5, subsection 1, Code 2023, is amended
31to read as follows:
321. A school district shall include as part of its financial
33audit for the budget year beginning July 1, 2007, and for
34each subsequent budget year the amount received during the
35year pursuant to chapter 423E or this chapter, as applicable.
-25-1In addition, the financial audit shall include the amount
2of bond levies, and physical plant and equipment levy, and
3public educational and recreational levy reduced as a result
4of the moneys received under chapter 423E or this chapter,
5as applicable. The amount of the reductions shall be stated
6in terms of dollars and cents per one thousand dollars of
7valuation and in total amount of property tax dollars. Also
8included shall be an accounting of the amount of moneys
9received which were spent for infrastructure purposes pursuant
10to chapter 423E or this chapter, as applicable.
11 Sec. 41. REPEAL. Sections 276.11 and 276.12, Code 2023,
12are repealed.
13 Sec. 42. REPEAL. Chapter 300, Code 2023, is repealed.
14 Sec. 43. EFFECTIVE DATE. Except as otherwise provided in
15this division of this Act, this division of this Act takes
16effect July 1, 2027.
17 Sec. 44. EFFECTIVE DATE. The following, being deemed of
18immediate importance, takes effect upon enactment:
19The section of this division of this Act enacting section
20300.2, subsection 4.
21 Sec. 45. APPLICABILITY. Except for the section of this
22division of this Act enacting section 300.2, subsection 4, this
23division of this Act applies to fiscal years beginning on or
24after July 1, 2027.
25DIVISION IV
26BRUCELLOSIS AND TUBERCULOSIS ERADICATION FUND — LEVY
27 Sec. 46. Section 165.18, subsections 2 and 3, Code 2023, are
28amended by striking the subsections.
29 Sec. 47. Section 331.512, subsection 1, paragraph e, Code
302023, is amended by striking the paragraph.
31 Sec. 48. Section 331.559, subsection 2, Code 2023, is
32amended by striking the subsection.
33 Sec. 49. EFFECTIVE DATE. This division of this Act takes
34effect July 1, 2024.
35 Sec. 50. APPLICABILITY. This division of this Act applies
-26-1to property taxes due and payable in fiscal years beginning on
2or after July 1, 2024.
3DIVISION V
4COUNTY SEATS
5 Sec. 51. Section 331.301, Code 2023, is amended by adding
6the following new subsection:
7 NEW SUBSECTION. 9A. Pursuant to the general grant of home
8rule power conferred by the Constitution of the State of Iowa
9and if not inconsistent with the laws of the general assembly,
10a county that has designated more than one city to be a county
11seat may consolidate or reduce the number of county seats by
12ordinance.
13 Sec. 52. REPEAL. 1848 Iowa Acts, First Extraordinary
14Session, chapter 52, is repealed.
15 Sec. 53. EFFECTIVE DATE. This division of this Act, being
16deemed of immediate importance, takes effect upon enactment.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill relates to local government property taxes,
21financial authority, and budgets.
22DIVISION I — COUNTY PROPERTY TAXES AND BUDGETS. Code
23section 331.301(10) governs a county’s authority to enter into
24leases and lease-purchase contracts and, in part, subjects
25leases and lease-purchase agreements for real property to
26procedures for approval at an election following a petition
27if the principal amount of the contract exceeds specified
28thresholds categorized by county population. The bill reduces
29the thresholds for each category by 30 percent. The bill
30similarly reduces a threshold relating to when a lease or
31lease-purchase contract is not subject to approval procedures
32similar to essential county purposes bonds.
33Code section 331.402(3) governs a county’s authority
34to enter into loan agreements and, in part, subjects loan
35agreements for real property to procedures for approval at an
-27-1election following a petition if the principal amount of the
2contract exceeds specified thresholds categorized by county
3population. The bill reduces the thresholds for each category
4by 30 percent.
5Code section 331.403 requires each county to prepare and
6file an annual financial report. The bill requires that
7beginning with the annual financial report filed by December 1,
82024, each such report shall include a list of bonds, notes,
9or other obligations issued by the county during the preceding
10fiscal year payable from any source, including the amount of
11the issuance, the project or purpose of the issuance, whether
12the issuance was approved at election or eligible to be subject
13to a petition for an election, and identification of issuances
14from the fiscal year or prior fiscal years related to the same
15project or purpose.
16Code section 331.423 establishes a levy rate limitation
17for the general county services levy of $3.50 per $1,000
18of assessed value of taxable property in the county and a
19limitation for the rural county services levy of $3.95 per
20$1,000 of assessed value of taxable property in the county.
21The bill modifies the general county services levy rate
22limitation for the fiscal year beginning July 1, 2024, to be a
23levy rate not to exceed the sum of $3.50 plus the levy rate of
24the county under Code section 331.424, subsection 1, paragraph
25“a”, subparagraph (6) (maintenance and operation of courts),
26Code 2023, for the fiscal year beginning July 1, 2023, plus
27the levy rate for general county services under Code section
28331.426, Code 2023, for the fiscal year beginning July 1, 2023.
29The bill then provides that for each fiscal year beginning on
30or after July 1, 2025, the general county services levy rate
31limitation is the greater of $3.50 per $1,000 of taxable value
32and the limitation determined for the preceding fiscal year,
33as adjusted under the bill. If the total assessed value used
34to calculate taxes for general county services for the budget
35year exceeds 102.5 percent of the total assessed value used
-28-1to calculate taxes for the current fiscal year, the levy rate
2amount per $1,000 for the preceding fiscal year, if applicable,
3shall be reduced to a rate that is equal to 1,000 multiplied
4by the quotient of the current fiscal year’s actual property
5tax dollars certified for levy divided by 102.5 percent of the
6total assessed value used to calculate taxes for the current
7fiscal year.
8In addition to that levy limitation, for fiscal years
9beginning on or after July 1, 2025, if the county’s actual levy
10rate for general county services for the current fiscal year
11is $3.50 or less per $1,000 of assessed value and the total
12assessed value used to calculate taxes for the budget year
13exceeds 103.25 percent of the total assessed value used to
14calculate taxes for the current fiscal year, the levy rate for
15general county services for the budget year shall not exceed
16the rate per $1,000 of assessed value that is equal to 1,000
17multiplied by the quotient of the current fiscal year’s actual
18property tax dollars certified for levy for general county
19services divided by 103.25 percent of the total assessed value
20used to calculate taxes for the current fiscal year.
21The bill similarly modifies the maximum levy rate for rural
22county services for the fiscal year beginning July 1, 2024, to
23be a levy rate equal to the sum of $3.95 plus the rate levied
24for rural county services under section 331.426, Code 2023, for
25the fiscal year beginning July 1, 2023. For each fiscal year
26beginning on or after July 1, 2025, the maximum levy rate is
27the greater of $3.95 and the levy rate for the preceding fiscal
28year as adjusted under the bill. The bill provides that if the
29total assessed value used to calculate taxes for rural county
30services for the budget year exceeds 102.5 percent of the total
31assessed value used to calculate taxes for the current fiscal
32year, the levy rate, as previously adjusted under the bill,
33if applicable, shall be reduced to a rate that is equal to
341,000 multiplied by the quotient of the current fiscal year’s
35actual property tax dollars certified for levy for rural county
-29-1services divided by 102.5 percent of the total assessed value
2used to calculate taxes for the current fiscal year.
3In addition to that levy limitation, for fiscal years
4beginning on or after July 1, 2025, if the county’s actual
5levy rate for rural county services for the current fiscal
6year is $3.95 or less per $1,000 of assessed value and the
7total assessed value used to calculate taxes for the budget
8year exceeds 103.25 percent of the total assessed value used
9to calculate taxes for the current fiscal year, the levy
10rate for rural county services for the budget year shall not
11exceed the rate per $1,000 of assessed value that is equal to
121,000 multiplied by the quotient of the current fiscal year’s
13actual property tax dollars certified for levy for rural county
14services divided by 103.25 percent of the total assessed value
15used to calculate taxes for the current fiscal year.
16The bill strikes the authority of a county to impose a
17supplemental levy under Code section 331.424 for maintenance
18and operation of the courts and, if the county imposed such a
19levy in the fiscal year beginning July 1, 2023, increases the
20county’s general services levy rate authority by such levy rate
21amount as previously described.
22Code section 331.426 authorizes a county experiencing
23unusual circumstances, including increases in population,
24natural disaster or emergency, problems relating to major
25new functions required by state law, staffing problems, need
26for additional moneys to continue certain programs, need for
27new county programs that provide a substantial benefit to
28residents, and reduced or unusually low growth rate in the
29county, to levy additional property taxes for general county
30services or rural county services. If the county imposed such
31levies in the fiscal year beginning July 1, 2023, the bill
32increases the county’s applicable general services levy rate
33authority by such levy rate amounts as previously described.
34The bill strikes authority to levy such additional taxes for
35all unusual circumstances except a natural disaster.
-30- 1The bill modifies the provisions of Code section 331.433A
2relating to the approval procedures for a county budget to
3account for the modification of levy amount and rate changes
4in the bill.
5Code section 331.441(2)(b) defines “essential county
6purpose” to include public buildings, including the site
7or grounds of, and the erection, equipment, remodeling,
8or reconstruction of, and additions or extensions to the
9buildings, and including the provision and maintenance of
10juvenile detention or shelter care facilities, when the
11cost does not exceed specified thresholds based on county
12population. The bill reduces each of the threshold amounts by
1330 percent. The bill also strikes “[a]ny other purpose which
14is necessary for the operation of the county or the health and
15welfare of its citizens” from the definition of “general county
16purpose” under Code section 331.441(2)(c).
17Code section 331.442 governs county procedures for the
18issuance of general county purpose bonds. In lieu of calling
19an election, the board of supervisors may institute proceedings
20for the issuance of bonds for a general county purpose by
21publishing a notice of the proposal to issue the bonds,
22including a statement of the amount and purpose of the bonds,
23and the right to petition for an election if the amount of the
24bonds is less than specified threshold amounts based on county
25population. The bill reduces each of the threshold amounts by
2630 percent.
27Division I of the bill takes effect July 1, 2024, and applies
28to county taxes and budgets for fiscal years beginning on or
29after July 1, 2024.
30DIVISION II — CITY PROPERTY TAXES. Code section 384.1
31establishes the city general fund levy and limits the levy rate
32on property that is not used and assessed for agricultural or
33horticultural purposes at $8.10 per $1,000 of taxable value.
34This bill modifies the levy rate limit for the fiscal year
35beginning July 1, 2024, to not exceed the sum of $8.10 plus the
-31-1following for the applicable city: (1) the levy rate under
2Code section 384.8, Code 2023, for the fiscal year beginning
3July 1, 2023; (2) the total levy rate levied by or on behalf of
4the city under Code section 384.12, subsections 1, 2, 3, 4, 5,
56, 7, 8, 9, 11, 12, 13, 15, 16, 18, and 20, Code 2023, for the
6fiscal year beginning July 1, 2023; and (3) the levy rate of
7the city under Code section 24.48, Code 2023, for the fiscal
8year beginning July 1, 2023.
9For each fiscal year beginning on or after July 1, 2025, a
10city’s tax levy rate for the general fund, except for levies
11authorized in Code section 384.12, shall not exceed in any tax
12year the greater of $8.10 per $1,000 and the amount determined
13under the bill for the prior year, as adjusted under the bill.
14The bill provides that if the total assessed value used to
15calculate taxes for the budget year exceeds 102.5 percent
16of the total assessed value used to calculate taxes for the
17current fiscal year, the levy rate, as previously adjusted
18under the bill, if applicable, shall be reduced to a rate that
19is equal to 1,000 multiplied by the quotient of the current
20fiscal year’s actual property tax dollars certified for levy
21under Code section 384.1 divided by 102.5 percent of the total
22assessed value used to calculate taxes for the current fiscal
23year.
24In addition to that levy limitation, for fiscal years
25beginning on or after July 1, 2025, if the city’s actual levy
26rate for the general fund for the current fiscal year is $8.10
27or less per $1,000 of assessed value and the total assessed
28value used to calculate taxes for the budget year exceeds
29103.25 percent of the total assessed value used to calculate
30taxes for the current fiscal year, the levy rate for the
31general fund for the budget year shall not exceed the rate per
32$1,000 of assessed value that is equal to 1,000 multiplied by
33the quotient of the current fiscal year’s actual property tax
34dollars certified for levy under Code section 384.1 divided by
35103.25 percent of the total assessed value used to calculate
-32-1taxes for the current fiscal year.
2Code section 384.12 authorizes a city to levy various
3other additional taxes that under current law are not subject
4to the $8.10 levy limit. The bill strikes several of the
5purposes for which a city may levy an additional tax and if
6the county imposed such levies in the fiscal year beginning
7July 1, 2023, increases the county’s general services levy rate
8authority under Code section 384.1 by such levy rate amounts
9as previously described.
10Code section 24.48, in part, authorizes a city with a reduced
11property tax base or unusually low growth rate or experiencing
12unusual circumstances, including increases in population,
13natural disaster or emergency, problems relating to major new
14functions required by state law, staffing problems, need for
15additional moneys to continue certain programs, and need for
16new programs that provide a substantial benefit to residents,
17to appeal to the state appeal board to suspend levy limitations
18and levy additional property taxes. The bill provides that for
19budgets for fiscal years beginning on or after July 1, 2024,
20suspension of the statutory property tax levy limitations for a
21city shall only be approved for a natural disaster.
22The bill repeals Code section 384.8, which authorizes a
23$0.27 city emergency fund levy and makes corresponding changes
24to other provisions of law relating to the change in funding
25for emergency medical services districts under Code chapter
26357G and the modification of city supplemental property tax
27levies and the city’s general fund levy under Code section
28384.1.
29Code section 384.22 requires each city to prepare and
30publish an annual financial report. The bill requires that
31beginning with the annual financial report published by
32December 1, 2024, each such report shall include a list of
33bonds, notes, or other obligations issued by the city during
34the preceding fiscal year payable from any source, including
35the amount of the issuance, the project or purpose of the
-33-1issuance, whether the issuance was approved at election or
2eligible to be subject to a petition for an election, and
3identification of issuances from the fiscal year or prior
4fiscal years related to the same project or purpose.
5The bill strikes “[a]ny other purpose which is necessary
6for the operation of the city or the health and welfare of its
7citizens” from the definition of “general corporate purpose”
8under Code section 384.24(4).
9Code section 384.24A(4) governs a city’s authority to enter
10into loan agreements and, in part, subjects loan agreements
11for real property to procedures for approval at an election
12following a petition if the principal amount of the contract
13exceeds specified thresholds categorized by city population.
14The bill reduces the contract amount thresholds for each
15category by 30 percent.
16Code section 384.26 governs city procedures for the issuance
17of city general corporate purpose bonds. In lieu of calling an
18election, the city council may institute proceedings for the
19issuance of bonds for a general corporate purpose by publishing
20a notice of the proposal to issue the bonds, including a
21statement of the amount and purpose of the bonds, and the right
22to petition for an election if the amount of the bonds is less
23than specified threshold amounts based on city population. The
24bill reduces each of the threshold amounts by 30 percent.
25Division II takes effect July 1, 2024, and applies to taxes
26and budgets for fiscal years beginning on or after July 1,
272024.
28DIVISION III — PUBLIC EDUCATION AND RECREATIONAL TAX LEVY.
29 Code chapter 300 authorizes the imposition of a voter-approved
30property tax levy for the establishment and maintenance
31of public recreation places and playgrounds, and necessary
32accommodations for the recreation places and playgrounds, in
33the public school buildings and grounds of the district. Code
34chapter 300 also authorizes each school board to cooperate
35with public or private agencies having custody and management
-34-1of public parks or buildings or grounds open to the public
2for the supervision and instruction necessary to carry on
3public educational and recreational activities in the parks,
4buildings, and grounds located within the district. Such
5activities may be supported by imposition of a voter-approved
6property tax levy not to exceed 13.5 cents per $1,000 of
7assessed value. The property tax levy under Code chapter 300
8also provides financial support to community education programs
9established under Code chapter 276, which provide educational,
10recreational, cultural, and other community services and
11programs.
12The bill repeals Code chapter 300 and makes corresponding
13amendments to other provisions of law effective July 1, 2027,
14and applies to fiscal years beginning on or after July 1,
152027. The bill provides that financial support for a community
16education program under Code chapter 276 may be provided from
17funds received by the school district under Code chapter 423F.
18 By operation of the definition of “school infrastructure” under
19Code section 423F.3(6)(a)(1), moneys received by a school
20district from the secure an advanced vision for education fund
21may continue to be utilized for activities previously provided
22for under Code chapter 300 and Code chapter 276.
23The bill prohibits a levy under Code chapter 300 from being
24approved at election on or after the effective date of the
25provision in the bill, which is effective upon enactment, and
26limits the rate at which previously approved levies can be
27imposed for the fiscal year beginning July 1, 2026.
28The bill also provides that moneys available in the public
29education and recreation levy fund at the conclusion of the
30fiscal year beginning July 1, 2026, and ending June 30, 2026,
31shall be expended by the school corporation for the purposes
32authorized under Code chapter 300, Code 2023.
33DIVISION IV — BRUCELLOSIS AND TUBERCULOSIS ERADICATION
34FUND — LEVY. Code section 165.18 authorizes the secretary of
35agriculture to direct the board of supervisors of each county
-35-1to levy an amount sufficient to pay the expenses estimated to
2be incurred from the brucellosis and tuberculosis eradication
3fund for the following fiscal year, subject to a maximum levy
4of 33.75 cents per $1,000. The bill strikes the authority to
5levy such a tax beginning with property taxes due and payable
6in fiscal years beginning July 1, 2024.
7DIVISION V — COUNTY SEATS. The bill specifies that pursuant
8to the general grant of home rule power conferred by the
9Constitution of the State of Iowa and if not inconsistent with
10the laws of the general assembly, a county that has designated
11more than one city to be a county seat may consolidate or
12reduce the number of county seats by ordinance. The bill also
13repeals 1848 Iowa Acts, First Extraordinary Session, chapter
1452, which in part required Lee County to maintain a district
15court at Fort Madison and the city of Keokuk, required the
16clerk of district court to keep an office at Fort Madison and
17the city of Keokuk, and required the sheriff of Lee County to
18keep an office at Fort Madison and the city of Keokuk.
19Division V of the bill takes effect upon enactment.
-36-md/jh
2authority, operations, and budgets, and including effective
3date and applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2COUNTY PROPERTY TAXES AND BUDGETS
3 Section 1. Section 331.301, subsection 10, paragraph e,
4subparagraph (1), Code 2023, is amended to read as follows:
5(1) (a) The board must follow substantially the
6authorization procedures of section 331.443 to authorize
7a lease or lease-purchase contract for personal property
8which is payable from the general fund. The board must
9follow substantially the authorization procedures of section
10331.443 to authorize a lease or lease-purchase contract for
11real property which is payable from the general fund if the
12principal amount of the lease-purchase contract does not exceed
13the following limits:
14(i) Four Two hundred eighty thousand dollars in a county
15having a population of twenty-five thousand or less.
16(ii) Five Three hundred fifty thousand dollars in a county
17having a population of more than twenty-five thousand but not
18more than fifty thousand.
19(iii) Six Four hundred twenty thousand dollars in a county
20having a population of more than fifty thousand but not more
21than one hundred thousand.
22(iv) Eight Five hundred sixty thousand dollars in a county
23having a population of more than one hundred thousand but not
24more than two hundred thousand.
25(v) One million Seven hundred thousand dollars in a county
26having a population of more than two hundred thousand.
27(b) However, if the principal amount of a lease or
28lease-purchase contract pursuant to this subparagraph (1) is
29less than twenty-five seventeen thousand five hundred dollars,
30the board may authorize the lease or lease-purchase contract
31without following the authorization procedures of section
32331.443.
33 Sec. 2. Section 331.402, subsection 3, paragraph d,
34subparagraph (1), subparagraph divisions (a), (b), (c), (d),
35and (e), Code 2023, are amended to read as follows:
-1- 1(a) Four Two hundred eighty thousand dollars in a county
2having a population of twenty-five thousand or less.
3(b) Five Three hundred fifty thousand dollars in a county
4having a population of more than twenty-five thousand but not
5more than fifty thousand.
6(c) Six Four hundred twenty thousand dollars in a county
7having a population of more than fifty thousand but not more
8than one hundred thousand.
9(d) Eight Five hundred sixty thousand dollars in a county
10having a population of more than one hundred thousand but not
11more than two hundred thousand.
12(e) One million Seven hundred thousand dollars in a county
13having a population of more than two hundred thousand.
14 Sec. 3. Section 331.403, subsection 1, Code 2023, is amended
15to read as follows:
161. Not later than December 1 of each year on forms and
17pursuant to instructions prescribed by the department of
18management, a county shall prepare an annual financial report
19showing for each county fund the financial condition as of
20June 30 and the results of operations for the year then ended.
21Copies of the report shall be maintained as a public record at
22the auditor’s office and shall be filed with the director of
23the department of management and with the auditor of state by
24December 1. A summary of the report, in a form prescribed by
25the director, shall be published by each county not later than
26December 1 of each year in one or more newspapers which meet
27the requirements of section 618.14. Beginning with the annual
28financial report filed by December 1, 2024, each report shall
29include a list of bonds, notes, or other obligations issued by
30the county during the preceding fiscal year payable from any
31source, including the amount of the issuance, the project or
32purpose of the issuance, whether the issuance was approved
33at election or eligible to be subject to a petition for an
34election, and identification of issuances from the fiscal year
35or prior fiscal years related to the same project or purpose.
-2-1 Sec. 4. Section 331.423, Code 2023, is amended to read as
2follows:
3331.423 Basic levies — maximums — adjustments.
4Annually, the board may certify basic levies, subject to the
5following limits:
61. For general county services,:
7a. For fiscal years beginning before July 1, 2024,three
8dollars and fifty cents per thousand dollars of the assessed
9value of all taxable property in the county.
10b. For the fiscal year beginning July 1, 2024, a levy rate
11per thousand dollars of taxable value equal to the sum of three
12dollars and fifty cents plus the sum of the amount per thousand
13dollars of taxable value levied by the county under section
14331.424, subsection 1, paragraph “a”, subparagraph (6), Code
152023, for the fiscal year beginning July 1, 2023, and the sum
16of the amount per thousand dollars of taxable value levied for
17general county services under section 331.426, Code 2023, for
18the fiscal year beginning July 1, 2023.
19c. (1) For each fiscal year beginning on or after July 1,
202025, subject to paragraph “d”, the greater of three dollars
21and fifty cents per thousand dollars of assessed value used to
22calculate taxes for the budget year and the amount determined
23under paragraph “b”, as adjusted under subparagraph (2), if
24applicable.
25(2) If the total assessed value used to calculate taxes for
26general county services for the budget year exceeds one hundred
27two and one-half percent of the total assessed value used to
28calculate taxes for the current fiscal year, the levy rate per
29thousand dollars determined under paragraph “b”, as previously
30adjusted under this subparagraph, if applicable, shall be
31reduced to a rate per one thousand dollars of assessed value
32that is equal to one thousand multiplied by the quotient of the
33current fiscal year’s actual property tax dollars certified for
34levy under this subsection 1 divided by one hundred two and
35one-half percent of the total assessed value used to calculate
-3-1taxes for the current fiscal year.
2d. In addition to the limitation under paragraph “c”,
3for fiscal years beginning on or after July 1, 2025, if the
4county’s actual levy rate imposed under this subsection for the
5current fiscal year is three dollars and fifty cents or less
6per thousand dollars of assessed value and the total assessed
7value used to calculate taxes for the budget year exceeds one
8hundred three and twenty-five hundredths percent of the total
9assessed value used to calculate taxes for the current fiscal
10year, the levy rate imposed under this subsection for the
11budget year shall not exceed a rate per one thousand dollars
12of assessed value that is equal to one thousand multiplied by
13the quotient of the current fiscal year’s actual property tax
14dollars certified for levy under this subsection 1 divided by
15one hundred three and twenty-five hundredths percent of the
16total assessed value used to calculate taxes for the current
17fiscal year.
182. For rural county services,:
19a. For fiscal years beginning before July 1, 2024,three
20dollars and ninety-five cents per thousand dollars of the
21assessed value of taxable property in the county outside of
22incorporated city areas.
23b. For the fiscal year beginning July 1, 2024, a levy rate
24per thousand dollars of taxable value equal to the sum of three
25dollars and ninety-five cents plus the sum of the amount per
26thousand dollars of taxable value levied for rural county
27services under section 331.426, Code 2023, for the fiscal year
28beginning July 1, 2023.
29c. (1) For each fiscal year beginning on or after July 1,
302025, subject to paragraph “d”, the greater of three dollars
31and ninety-five cents per thousand dollars of assessed value
32used to calculate taxes for the budget year and the amount
33determined under paragraph “b”, as adjusted under subparagraph
34(2), if applicable.
35(2) If the total assessed value used to calculate taxes
-4-1for rural county services under this subsection for the budget
2year exceeds one hundred two and one-half percent of the total
3assessed value used to calculate taxes for the current fiscal
4year, the levy rate per thousand dollars determined under
5paragraph “b”, as previously adjusted under this subparagraph,
6if applicable, shall be reduced to a rate per one thousand
7dollars of assessed value that is equal to one thousand
8multiplied by the quotient of the current fiscal year’s actual
9property tax dollars certified for levy under this subsection 2
10divided by one hundred two and one-half percent of the total
11assessed value used to calculate taxes for the current fiscal
12year.
13d. In addition to the limitation under paragraph “c”,
14for fiscal years beginning on or after July 1, 2025, if the
15county’s actual levy rate imposed under this subsection for
16the current fiscal year is three dollars and ninety-five
17cents or less per thousand dollars of assessed value and the
18total assessed value used to calculate taxes for the budget
19year exceeds one hundred three and twenty-five hundredths
20percent of the total assessed value used to calculate taxes
21for the current fiscal year, the levy rate imposed under this
22subsection for the budget year shall not exceed a rate per
23one thousand dollars of assessed value that is equal to one
24thousand multiplied by the quotient of the current fiscal
25year’s actual property tax dollars certified for levy under
26this subsection 2 divided by one hundred three and twenty-five
27hundredths percent of the total assessed value used to
28calculate taxes for the current fiscal year.
293. For purposes of this section:
30a. “Budget year” means the same as defined in section
31331.433A, subsection 1.
32b. “Current fiscal year” means the same as defined in
33section 331.433A, subsection 1.
34 Sec. 5. Section 331.424, subsection 1, paragraph a,
35subparagraph (6), Code 2023, is amended by striking the
-5-1subparagraph.
2 Sec. 6. Section 331.426, Code 2023, is amended to read as
3follows:
4331.426 Additions to basic levies.
51. If a county has unusual circumstances a natural disaster,
6creating a need for additional property taxes for general
7county services or rural county services in excess of the
8amount that can be raised by the levies otherwise permitted
9under sections 331.423 through 331.425, the board may certify
10additions to each of the basic levies as follows: by complying
11with the provisions of subsection 2.
121. The basis for justifying an additional property tax under
13this section must be one or more of the following:
14a. An unusual increase in population as determined by the
15preceding certified federal census.
16b. A natural disaster or other emergency.
17c. Unusual problems relating to major new functions required
18by state law.
19d. Unusual staffing problems.
20e. Unusual need for additional moneys to permit continuance
21of a program which provides substantial benefit to county
22residents.
23f. Unusual need for a new program which will provide
24substantial benefit to county residents, if the county
25establishes the need and the amount of necessary increased
26cost.
27g. A reduced or unusually low growth rate in the property
28tax base of the county.
292. a. The public notice of a hearing on the county budget
30required by section 331.434, subsection 3, shall include the
31following additional information for the applicable class of
32services related to the natural disaster:
33(1) A statement that the accompanying budget summary
34requires a proposed basic property tax rate exceeding the
35maximum rate established by the general assembly.
-6- 1(2) A comparison of the proposed basic tax rate with the
2maximum basic tax rate, and the dollar amount of the difference
3between the proposed rate and the maximum rate.
4(3) A statement of the major reasons resulting from the
5natural disaster for the difference between the proposed basic
6tax rate and the maximum basic tax rate.
7b. The information required by this subsection shall be
8published in a conspicuous form as prescribed by the committee.
9 Sec. 7. Section 331.433A, subsection 5, paragraph b, Code
102023, is amended to read as follows:
11b. (1) If the sum of the maximum property tax dollars
12for the budget year specified in the resolution for either
13general county services or for rural county services under the
14levies specified in subsection 2, paragraphs “a” and “b”, as
15applicable, exceeds one hundred two percent of the sum of the
16current fiscal year’s actual property taxes certified for levy
17for general county services or rural county services under the
18levies specified in subsection 2, paragraphs “a” and “b”, as
19applicable, the board shall be required to adopt the resolution
20by a two-thirds majority of the membership of the board.
21(2) (a) For the budget year beginning July 1, 2024, the
22amount of the current fiscal year’s actual property taxes
23certified for levy for general county services shall include
24amounts certified for levy under section 331.424, subsection 1,
25paragraph “a”, subparagraph (6), Code 2023, and under section
26331.426, Code 2023.
27(b) For the budget year beginning July 1, 2024, the amount
28of the current fiscal year’s actual property taxes certified
29for levy for rural county services shall include amounts
30certified for levy under Code section 331.426, Code 2023.
31 Sec. 8. Section 331.441, subsection 2, paragraph b,
32subparagraph (5), subparagraph divisions (a), (b), (c), (d),
33and (e), Code 2023, are amended to read as follows:
34(a) Six Four hundred twenty thousand dollars in a county
35having a population of twenty-five thousand or less.
-7- 1(b) Seven Five hundred fifty twenty-five thousand dollars
2in a county having a population of more than twenty-five
3thousand but not more than fifty thousand.
4(c) Nine Six hundred thirty thousand dollars in a county
5having a population of more than fifty thousand but not more
6than one hundred thousand.
7(d) One million two Eight hundred forty thousand dollars in
8a county having a population of more than one hundred thousand
9but not more than two hundred thousand.
10(e) One million five hundred fifty thousand dollars in a
11county having a population of more than two hundred thousand.
12 Sec. 9. Section 331.441, subsection 2, paragraph c,
13subparagraph (11), Code 2023, is amended by striking the
14subparagraph.
15 Sec. 10. Section 331.442, subsection 5, paragraph a,
16subparagraphs (1), (2), and (3), Code 2023, are amended to read
17as follows:
18(1) In counties having a population of twenty thousand
19or less, in an amount of not more than one hundred seventy
20 thousand dollars.
21(2) In counties having a population of over twenty thousand
22and not over fifty thousand, in an amount of not more than two
23 one hundred forty thousand dollars.
24(3) In counties having a population of over fifty thousand,
25in an amount of not more than three two hundred ten thousand
26dollars.
27 Sec. 11. EFFECTIVE DATE. This division of this Act takes
28effect July 1, 2024.
29 Sec. 12. APPLICABILITY. This division of this Act applies
30to taxes and budgets for fiscal years beginning on or after
31July 1, 2024.
32DIVISION II
33CITY PROPERTY TAXES AND BUDGETS
34 Sec. 13. Section 24.48, subsection 5, Code 2023, is amended
35by adding the following new paragraph:
-8-1 NEW PARAGRAPH. c. For budgets for fiscal years beginning on
2or after July 1, 2024, if the political subdivision is a city,
3a suspension of the statutory property tax levy limitations
4under this section shall only be approved by the state appeal
5board in the event of a natural disaster.
6 Sec. 14. Section 28M.5, subsection 1, Code 2023, is amended
7to read as follows:
81. The commission, with the approval of the board of
9supervisors of participating counties and the city council
10of participating cities in the chapter 28E agreement, may
11levy annually a tax not to exceed ninety-five cents per
12thousand dollars of the assessed value of all taxable property
13in a regional transit district to the extent provided in
14this section. The chapter 28E agreement may authorize the
15commission to levy the tax at different rates within the
16participating cities and counties in amounts sufficient to meet
17the revenue responsibilities of such cities and counties as
18allocated in the budget adopted by the commission. However,
19for a city participating in a regional transit district, the
20total of all the tax levies imposed in the city pursuant
21to section 384.12, subsection 10 1, and this section shall
22not exceed the aggregate of ninety-five cents per thousand
23dollars of the assessed value of all taxable property in the
24participating city.
25 Sec. 15. Section 37.8, Code 2023, is amended to read as
26follows:
2737.8 Levy for Cost of development, operation, and
28 maintenance.
29For the development, operation, and maintenance of a
30building or monument constructed, purchased, or donated under
31this chapter, a city may levy a tax not to exceed eighty-one
32cents per thousand dollars of assessed value on all the taxable
33property within the city, as provided in section 384.12,
34subsection 2 utilize taxes levied under section 384.1.
35 Sec. 16. Section 357G.8, Code 2023, is amended to read as
-9-1follows:
2357G.8 Election on proposed levy and of candidates for
3trustees — funding of operations.
41. When a preliminary plat has been approved by the council,
5an election shall be held within the district within sixty days
6to approve or disapprove the levy of an initial tax of not
7more than one dollar per thousand dollars of assessed value
8on all the taxable property within the district and to choose
9candidates for the offices of trustees of the district. The
10ballot shall set out the reason for the tax and the amount
11needed. The tax shall be set to raise only the amount needed.
12 Notice of the election, including the time and place of holding
13the election, shall be given as provided in section 357G.4.
14The vote shall be by ballot which shall state clearly the
15proposition to be voted upon and any registered voter residing
16within the district at the time of the election may vote. It
17is not mandatory for the county commissioner of elections
18to conduct elections held pursuant to this chapter, but the
19elections shall be conducted in accordance with chapter 49
20where not in conflict with this chapter. Judges shall be
21appointed to serve without pay by the council from among the
22registered voters of the district to be in charge of the
23election. The proposition is approved if sixty percent of
24those voting on the proposition vote in favor of it.
252. a. If the tax authorized under subsection 1 is
26insufficient to provide the services authorized under this
27chapter, the trustees may levy an additional annual tax, at
28a rate necessary to provide the authorized services, if such
29authority for an additional tax is approved at election held
30separately and after the election held under subsection 1.
31The district’s operations shall be funded from general fund
32property tax revenues certified by the city and levied under
33section 384.1.
34b. By resolution, the council may submit to the registered
35voters of the district the proposition of levying the
-10-1additional annual tax according to the election procedures
2under subsection 1.
3c. (1) After adoption of the resolution under paragraph
4“b”, the The board of trustees shall coordinate efforts with
5the local emergency medical services agencies to establish
6a district advisory council to assist in researching and
7assessing the service needs of the district and guiding
8implementation of services in the district within a council
9structure.
10(2) The district advisory council established under
11subparagraph (1) shall recommend to the board of trustees
12an amount of funding to be specified on the ballot for the
13election held under this subsection 2 to be requested from the
14city to fund the district and shall annually assess and review
15the emergency medical services needs of the district and shall
16include the results of such review and assessment in an annual
17report filed with the board of trustees. The annual report
18shall be publicly available upon filing with the board of
19trustees. The board of trustees shall receive public comment
20regarding the report at one or more meetings of the board
21of trustees. Any meeting of the board of trustees at which
22public comment on the annual report is heard shall be at least
23fourteen days following the date the annual report is filed
24with the board of trustees.
25d. The proposition is adopted if a majority of those
26voting on the proposition at the election approves it. If
27the proposition is approved at election, the trustees may
28impose the additional annual tax beginning with the fiscal
29year beginning July 1 following the election at which the
30proposition was approved. The proposition is not affected by a
31change in the boundaries of the district.
32e. Discontinuance of the authority to impose an additional
33tax under this chapter shall be by petition and election.
34Upon petition of twenty-five percent of the resident eligible
35electors, the board of trustees shall submit to the voters
-11-1of the district the question of whether to discontinue the
2authority to impose the additional tax according to the
3election procedures under subsection 1. If a majority of those
4voting on the question of discontinuance of the trustees’
5authority to impose the tax favors discontinuance, the trustees
6shall not impose the additional tax for any fiscal year
7beginning after the election approving the discontinuance,
8unless imposition is subsequently again authorized at election.
9Following discontinuance of the authority to impose the
10additional tax, authority to reimpose the additional tax
11requires approval in accordance with this subsection.
12 Sec. 17. Section 357G.10, Code 2023, is amended to read as
13follows:
14357G.10 Trustees’ powers.
15The trustees may purchase, own, rent, or maintain emergency
16medical services apparatus or equipment within the state or
17outside the territorial jurisdiction and boundary limits of
18this state, provide housing for such apparatus and equipment,
19provide emergency medical service and facilities, and may
20request the city certify for levy an amount of taxes as
21provided in section 357G.8. The trustees may purchase
22material, employ emergency medical service and other personnel,
23and may perform all other acts necessary to properly maintain
24and operate the district. The trustees may contract with any
25other city or county or public or private agency under chapter
2628E for the purpose of providing emergency medical services
27under this chapter. The trustees are allowed necessary
28expenses in the discharge of their duties, but they shall not
29receive a salary.
30 Sec. 18. Section 357G.12, Code 2023, is amended to read as
31follows:
32357G.12 Dissolution of district.
33Upon petition of thirty-five percent of the resident
34eligible electors, the council may dissolve a district and
35dispose of any remaining property, the proceeds of which shall
-12-1first be applied against outstanding obligations and any
2balance shall be applied to tax credit of property owners of
3the district. The council shall continue to levy a tax after
4dissolution of a district, of not to exceed twenty-seven cents
5per thousand dollars of assessed value on all the taxable
6property of the district, appropriate taxes levied under
7section 384.1 until all outstanding obligations of the district
8are paid.
9 Sec. 19. Section 357G.13, Code 2023, is amended to read as
10follows:
11357G.13 Adding property to district.
12Any property in an unincorporated area contiguous to the
13boundaries of an established district which is annexed by the
14city shall be included in the district. The tax levy for the
15next year shall be applied to the property and on the first day
16of the next fiscal year, the property shall become a part of
17the district.
18 Sec. 20. Section 357J.18, Code 2023, is amended to read as
19follows:
20357J.18 Transition — emergency medical services district
21taxes discontinued.
22When the boundary lines of the emergency response district
23include all or a portion of an emergency medical services
24district under chapter 357F or chapter 357G and the emergency
25response district has certified a tax to be levied on property
26located within the emergency medical services district for
27the purpose of emergency medical service, the emergency
28medical services district trustees shall no longer levy the
29taxes authorized in section 357F.8 or section 357G.8 utilize
30tax revenue levied under section 384.1 for emergency medical
31services district purposes in that portion of such emergency
32medical services district that is provided services by the
33emergency response district. Any indebtedness incurred by
34an emergency medical services district under chapter 357F
35or chapter 357G for a service now provided by the emergency
-13-1response district shall be assumed by the emergency response
2district.
3 Sec. 21. Section 384.1, Code 2023, is amended to read as
4follows:
5384.1 Taxes certified.
61. A city may certify taxes to be levied by the county
7on all taxable property within the city limits, for all city
8government purposes. However, the
92. a. Notwithstanding subsection 3, thetax levied by
10a city on tracts of land and improvements thereon used and
11assessed for agricultural or horticultural purposes, shall
12not exceed three dollars and three-eighths cents per thousand
13dollars of assessed value in any year. Improvements located
14on such tracts of land and not used for agricultural or
15horticultural purposes and all residential dwellings are
16subject to the same rate of tax levied by the city on all other
17taxable property within the city. A
183. a. For fiscal years beginning before July 1, 2024, a
19city’s tax levy for the general fund shall not exceed eight
20dollars and ten cents per thousand dollars of taxable assessed
21 value used to calculate taxes in any tax year, except for the
22levies authorized in section 384.12.
23b. For the fiscal year beginning July 1, 2024, a city’s
24tax levy for the general fund, except for levies authorized in
25section 384.12, shall not exceed the sum of eight dollars and
26ten cents per thousand dollars of taxable value plus the sum of
27the following for the city, as applicable:
28(1) The amount per thousand dollars of taxable value levied
29by or on behalf of the city under section 384.8, Code 2023, for
30the fiscal year beginning July 1, 2023.
31(2) The total amount per thousand dollars of taxable value
32levied by or on behalf of the city under section 384.12,
33subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, 18,
34and 20, Code 2023, for the fiscal year beginning July 1, 2023.
35(3) The amount per thousand dollars of taxable value levied
-14-1by the city under section 24.48, Code 2023, for the fiscal year
2beginning July 1, 2023.
3c. (1) For each fiscal year beginning on or after July
41, 2025, subject to paragraph “d”, a city’s tax levy for the
5general fund, except for levies authorized in section 384.12,
6shall not exceed in any tax year the greater of eight dollars
7and ten cents per thousand dollars of assessed value used to
8calculate taxes for the budget year and the amount determined
9under paragraph “b”, as adjusted under subparagraph (2), if
10applicable.
11(2) If the total assessed value used to calculate taxes
12for the budget year exceeds one hundred two and one-half
13percent of the total assessed value used to calculate taxes for
14the current fiscal year, the levy rate per thousand dollars
15determined under paragraph “b”, as previously adjusted under
16this subparagraph, if applicable, shall be reduced to a rate
17per one thousand dollars of assessed value that is equal to
18one thousand multiplied by the quotient of the current fiscal
19year’s actual property tax dollars certified for levy under
20this section divided by one hundred two and one-half percent
21of the total assessed value used to calculate taxes for the
22current fiscal year.
23d. In addition to the limitation under paragraph “c”, for
24fiscal years beginning on or after July 1, 2025, if the city’s
25actual levy rate imposed under this section for the current
26fiscal year is eight dollars and ten cents or less per thousand
27dollars of assessed value and the total assessed value used to
28calculate taxes for the budget year exceeds one hundred three
29and twenty-five hundredths percent of the total assessed value
30used to calculate taxes for the current fiscal year, the levy
31rate imposed under this section for the budget year shall not
32exceed a rate per one thousand dollars of assessed value that
33is equal to one thousand multiplied by the quotient of the
34current fiscal year’s actual property tax dollars certified
35for levy under this section divided by one hundred three and
-15-1twenty-five hundredths percent of the total assessed value used
2to calculate taxes for the current fiscal year.
34. For purposes of this section:
4a. “Budget year” means the same as defined in section
5384.15A, subsection 1.
6b. “Current fiscal year” means the same as defined in
7section 384.15A, subsection 1.
8 Sec. 22. Section 384.12, Code 2023, is amended to read as
9follows:
10384.12 Additional taxes.
11A city may certify, for the general fund levy, taxes which
12are not subject to the limit provided in section 384.1, and
13which are in addition to any other moneys the city may wish to
14spend for such purposes, as follows:
151. A tax not to exceed thirteen and one-half cents
16per thousand dollars of assessed value for the support of
17instrumental or vocal musical groups, one or more organizations
18which have tax-exempt status under section 501(c)(3) of
19the Internal Revenue Code and are organized and operated
20exclusively for artistic and cultural purposes, or any of these
21purposes, subject to the following:
22a. Upon receipt of a petition valid under the provisions of
23section 362.4, the council shall submit to the voters at the
24next regular city election the question of whether a tax shall
25be levied.
26b. If a majority approves the levy, it may be imposed.
27c. The levy can be eliminated by the same procedure of
28petition and election.
29d. A tax authorized by an election held prior to the
30effective date of the city code may be continued until
31eliminated by the council, or by petition and election.
322. A tax not to exceed eighty-one cents per thousand dollars
33of assessed value for development, operation, and maintenance
34of a memorial building or monument, subject to the provisions
35of subsection 1.
-16- 13. A tax not to exceed thirteen and one-half cents per
2thousand dollars of assessed value for support of a symphony
3orchestra, subject to the provisions of subsection 1.
44. A tax not to exceed twenty-seven cents per thousand
5dollars of assessed value for the operation of cultural and
6scientific facilities, subject to the provisions of subsection
71, except that the question may be submitted on the council’s
8own motion.
95. A tax to aid in the construction of a county bridge,
10subject to the provisions of subsection 1, except that the
11question must be submitted at a special election. The expense
12of a special election under this subsection must be paid by the
13county. The notice of the special election must include full
14details of the proposal, including the location of the proposed
15bridge, the rate of tax to be levied, and all other conditions.
166. A tax to aid a company incorporated under the laws of
17this state in the construction of a highway or combination
18bridge across any navigable boundary river of this state,
19commencing or terminating in the city and suitable for use
20as highway, or for both highway and railway purposes. This
21tax levy is subject to the provisions of subsections 1 and 5.
22The levy is limited to one dollar and thirty-five cents per
23thousand dollars of the assessed value of taxable property in
24the city. The estimated cost of the bridge must be at least
25ten thousand dollars, and the city aid may not exceed one-half
26of the estimated cost. The notice of the special election
27must include the name of the corporation to be aided, and all
28conditions required of the corporation. Tax moneys received
29for this purpose may not be paid over by the county treasurer
30until the city has filed a statement that the corporation has
31complied with all conditions.
327. If a tax has been voted for aid of a bridge under
33subsection 6, a further tax may be voted for the purpose of
34purchasing the bridge, subject to the provisions of subsection
351. The levy under this subsection is limited to three dollars
-17-1and thirty-seven and one-half cents per thousand dollars of the
2assessed value of the taxable property in the city, payable in
3not less than ten annual installments.
48. A tax for the purpose of carrying out the terms of a
5contract for the use of a bridge by a city situated on a river
6over which a bridge has been built. The tax may not exceed
7sixty-seven and one-half cents per thousand dollars of assessed
8value each year.
99. A tax for aid to a public transportation company,
10subject to the procedure provided in subsection 1, except the
11question must be submitted at a special election. The levy is
12limited to three and three-eighths cents per thousand dollars
13of assessed value. In addition to any other conditions the
14following requirements must be met before moneys received for
15this purpose may be paid over by the county treasurer:
16a. The public transportation company shall provide the city
17with copies of state and federal income tax returns for the
18five years preceding the year for which payment is contemplated
19or for such lesser period of time as the company has been in
20operation.
21b. The city shall, in any given year, be authorized to pay
22over only such sums as will yield not to exceed two percent
23of the public transportation company’s investment as the same
24is valued in its tax depreciation schedule, provided that
25corporate profits and losses for the five preceding years or
26for such lesser period of time as the company has been in
27operation shall not average in excess of a two percent net
28return. Taxes levied under this subsection may not be used to
29subsidize losses incurred prior to the election required by
30this subsection.
3110. 1. A tax for the operation and maintenance of a
32municipal transit system or for operation and maintenance of a
33regional transit district, and for the creation of a reserve
34fund for the system or district, in an amount not to exceed
35ninety-five cents per thousand dollars of assessed value each
-18-1year, when the revenues from the transit system or district are
2insufficient for such purposes.
311. If a city has entered into a lease of a building or
4complex of buildings to be operated as a civic center, a tax
5sufficient to pay the installments of rent and for maintenance,
6insurance and taxes not included in the lease rental payments.
712. A tax not to exceed thirteen and one-half cents per
8thousand dollars of assessed value each year for operating and
9maintaining a civic center owned by a city.
1013. A tax not to exceed six and three-fourths cents per
11thousand dollars of assessed value for planning a sanitary
12disposal project.
1314. 2. A tax not to exceed twenty-seven cents per thousand
14dollars of assessed value each year for an aviation authority
15as provided in section 330A.15.
1615. A tax not to exceed six and three-fourths cents per
17thousand dollars of assessed value each year for a levee
18improvement fund in special charter cities as provided in
19section 420.155.
2016. A tax not to exceed twenty and one-half cents per
21thousand dollars of assessed value each year to maintain an
22institution received by gift or devise, subject to an election
23as required under subsection 1.
2417. 3. A tax to pay the premium costs on tort liability
25insurance, property insurance, and any other insurance that
26may be necessary in the operation of the city, the costs of a
27self-insurance program, the costs of a local government risk
28pool and amounts payable under any insurance agreements to
29provide or procure such insurance, self-insurance program, or
30local government risk pool.
3118. A tax to fund an emergency medical services district
32under chapter 357G.
3319. 4. A tax that exceeds any tax levy limit within this
34chapter, provided the question has been submitted at a special
35levy election and received a simple majority of the votes cast
-19-1on the proposition to authorize the enumerated levy limit to be
2exceeded for the proposed budget year.
3a. The election may be held as specified in this subsection
4if notice is given by the city council, not later than
5forty-six days before the first Tuesday in March, to the county
6commissioner of elections that the election is to be held.
7b. An election under this subsection shall be held on
8the first Tuesday in March and be conducted by the county
9commissioner of elections in accordance with the law.
10c. The ballot question shall be in substantially the
11following form:
12WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........?
13(Vote for only one of the following choices.)
14CHANGE LEVY AMOUNT ...
15Add to the existing levy amount a tax for the purpose of
16.......... (state purpose of proposed levy) at a rate of ...
17(rate) which will provide an additional $.... (amount).
18KEEP CURRENT LEVY ...
19Continue under the current maximum rate of ..., providing
20$.... (amount).
21d. The commissioner of elections conducting the election
22shall notify the city officials and other county auditors where
23applicable, of the results within two days of the canvass which
24shall be held on the second day that is not a holiday following
25the special levy election, and beginning no earlier than 1:00
26p.m.on that day.
27e. Notice of the election shall be published twice in
28accordance with the provisions of section 362.3, except that
29the first such notice shall be given at least two weeks before
30the election.
31f. The cost of the election shall be borne by the city.
32g. The election provisions of this subsection shall
33supersede other provisions for elections only to the extent
34necessary to comply with the provisions of this subsection.
35h. The provisions of this subsection apply to all cities,
-20-1however organized, including special charter cities which may
2adopt ordinances where necessary to carry out these provisions.
3i. The council shall certify the city’s budget with the tax
4askings not exceeding the amount approved by the special levy
5election.
620. A tax not to exceed twenty-seven cents per thousand
7dollars of assessed value for support of a public library,
8subject to petition and referendum requirements of subsection
91, except that if a majority approves the levy, it shall be
10imposed.
1121. 5. A tax for the support of a local emergency
12management commission established pursuant to chapter 29C.
13 Sec. 23. Section 384.15A, subsection 2, Code 2023, is
14amended to read as follows:
152. For budget years beginning on or after July 1, 2020,
16prior to the period of time for distribution of the budget
17under section 384.16, subsection 2, the council shall adopt a
18resolution establishing the total maximum property tax dollars
19that may be certified for levy that includes taxes for city
20government purposes under section 384.1, for the city’s trust
21and agency fund under section 384.6, subsection 1, for the
22city’s emergency fund for fiscal years beginning before July
231, 2024, under section 384.8, and Code 2023, for fiscal years
24beginning before July 1, 2024, the levies authorized under
25section 384.12, subsections 8, 10, 11, 12, 13, 17, and 21, Code
262023, and for fiscal years beginning on or after July 1, 2024,
27the levies authorized under section 384.12, subsections 1,
283, and 5, but excluding additions approved at election under
29section 384.12, subsection 19 4.
30 Sec. 24. Section 384.15A, subsection 5, paragraph b, Code
312023, is amended to read as follows:
32b. (1) If the sum of the maximum property tax dollars for
33the budget year specified in the resolution under the levies
34specified in subsection 2 exceeds one hundred two percent of
35the sum of the current fiscal year’s actual property taxes
-21-1certified for levy under the levies specified in subsection
22, the council shall be required to adopt the resolution by a
3two-thirds majority of the membership of the council.
4(2) For the budget year beginning July 1, 2024, the amount
5of the current fiscal year’s actual property taxes certified
6for levy shall include amounts certified for levy under section
7384.12, subsections 8, 10, 11, 12, 13, and 17, Code 2023, under
8section 24.48, Code 2023, and under section 384.8, Code 2023.
9 Sec. 25. Section 384.22, subsection 1, Code 2023, is amended
10to read as follows:
111. Not later than December 1 of each year, a city shall
12publish an annual financial report as provided in section
13362.3 containing a summary for the preceding fiscal year of
14all collections and receipts, all accounts due the city, and
15all expenditures, the current public debt of the city, and the
16legal debt limit of the city for the current fiscal year. The
17annual financial report shall be prepared on forms and pursuant
18to instructions prescribed by the auditor of state. Beginning
19with the annual financial report published by December 1, 2024,
20each report shall include a list of bonds, notes, or other
21obligations issued by the city during the preceding fiscal
22year payable from any source, including the amount of the
23issuance, the project or purpose of the issuance, whether the
24issuance was approved at election or eligible to be subject to
25a petition for an election, and identification of issuances
26from the fiscal year or prior fiscal years related to the same
27project or purpose.
28 Sec. 26. Section 384.24, subsection 4, paragraph i, Code
292023, is amended by striking the paragraph.
30 Sec. 27. Section 384.24A, subsection 4, paragraph a,
31subparagraphs (1), (2), and (3), Code 2023, are amended to read
32as follows:
33(1) Four Two hundred eighty thousand dollars in a city
34having a population of five thousand or less.
35(2) Seven Four hundred ninety thousand dollars in a city
-22-1having a population of more than five thousand but not more
2than seventy-five thousand.
3(3) One million Seven hundred thousand dollars in a city
4having a population of more than seventy-five thousand.
5 Sec. 28. Section 384.26, subsection 5, paragraph a,
6subparagraphs (1), (2), and (3), Code 2023, are amended to read
7as follows:
8(1) In cities having a population of five thousand or less,
9in an amount of not more than four two hundred eighty thousand
10dollars.
11(2) In cities having a population of more than five thousand
12and not more than seventy-five thousand, in an amount of not
13more than seven four hundred ninety thousand dollars.
14(3) In cities having a population in excess of seventy-five
15thousand, in an amount of not more than one million seven
16hundred thousand dollars.
17 Sec. 29. Section 384.110, Code 2023, is amended to read as
18follows:
19384.110 Insurance, self-insurance, and risk pooling funds.
20A city may credit funds to a fund or funds for the purposes
21authorized by section 364.4, subsection 5; section 384.12,
22subsection 17 3; or section 384.24, subsection 3, paragraph “s”.
23Moneys credited to the fund or funds, and interest earned on
24such moneys, shall remain in the fund or funds until expended
25for purposes authorized by section 364.4, subsection 5; section
26384.12, subsection 17 3; or section 384.24, subsection 3,
27paragraph “s”.
28 Sec. 30. REPEAL. Section 384.8, Code 2023, is repealed.
29 Sec. 31. EFFECTIVE DATE. This division of this Act takes
30effect July 1, 2024.
31 Sec. 32. APPLICABILITY. This division of this Act applies
32to taxes and budgets for fiscal years beginning on or after
33July 1, 2024.
34DIVISION III
35public education and recreation tax levy
-23-1 Sec. 33. Section 276.1, Code 2023, is amended to read as
2follows:
3276.1 Title.
4This section, sections 276.2 through 276.5, and sections
5276.8 through 276.11 276.10 of this chapter shall be known and
6may be cited as the “Iowa Community Education Act”.
7 Sec. 34. Section 276.3, unnumbered paragraph 1, Code 2023,
8is amended to read as follows:
9As used in sections 276.1, 276.2, this section, sections
10276.4, 276.5, and sections 276.8 through 276.11 276.10, unless
11the context otherwise requires:
12 Sec. 35. Section 276.10, subsection 1, Code 2023, is amended
13to read as follows:
141. The board of directors of a local school district
15may establish a community education program for schools in
16the district and provide for the general supervision of the
17program. Financial support for the program shall may be
18provided from funds raised pursuant to chapter 300 received by
19the school district under chapter 423F and from any private
20funds and any federal funds made available for the purpose of
21implementing this chapter. The program which recognizes that
22the schools belong to the people and which shall be centered
23in the schools may include but shall not be limited to the use
24of the school facilities day and night, year round including
25weekends and regular school vacation periods for educational,
26recreational, cultural, and other community services and
27programs for all age, ethnic, and socioeconomic groups residing
28in the community.
29 Sec. 36. Section 278.1, subsection 1, paragraph e, Code
302023, is amended to read as follows:
31e. Direct the transfer of any surplus in the debt service
32fund, physical plant and equipment levy fund, or other capital
33project funds, or public education and recreation levy fund to
34the general fund.
35 Sec. 37. Section 298A.6, Code 2023, is amended to read as
-24-1follows:
2298A.6 Public education and recreation levy fund.
3The public education and recreation levy fund is a special
4revenue fund. A public education and recreation levy fund
5must be established in any school corporation which levies
6 levied the tax authorized under section 300.2, Code 2023, or
7which receives received revenue from a chapter 28E agreement
8authorized under section 300.1, Code 2023. Moneys available in
9the fund at the conclusion of the fiscal year beginning July 1,
102026, and ending June 30, 2027, shall be expended by the school
11corporation for the purposes authorized under chapter 300, Code
122023.
13 Sec. 38. Section 300.2, Code 2023, is amended by adding the
14following new subsection:
15 NEW SUBSECTION. 4. a. A levy under this chapter shall not
16be approved by the voters on or after the effective date of
17this section of this division of this Act.
18b. If the levy has not been discontinued under section
19300.3, the authorization to impose the levy under this chapter
20shall terminate July 1, 2027.
21c. Notwithstanding subsection 2, including a proposition
22approved at an election held before the effective date of
23this section of this division of this Act, the rate of a levy
24imposed by a board of directors under this chapter for the
25fiscal year beginning July 1, 2026, shall not exceed one-half
26of the levy rate imposed by the board of directors for the
27fiscal year beginning July 1, 2025.
28 Sec. 39. Section 423F.3, subsection 1, paragraph c, Code
292023, is amended by striking the paragraph.
30 Sec. 40. Section 423F.5, subsection 1, Code 2023, is amended
31to read as follows:
321. A school district shall include as part of its financial
33audit for the budget year beginning July 1, 2007, and for
34each subsequent budget year the amount received during the
35year pursuant to chapter 423E or this chapter, as applicable.
-25-1In addition, the financial audit shall include the amount
2of bond levies, and physical plant and equipment levy, and
3public educational and recreational levy reduced as a result
4of the moneys received under chapter 423E or this chapter,
5as applicable. The amount of the reductions shall be stated
6in terms of dollars and cents per one thousand dollars of
7valuation and in total amount of property tax dollars. Also
8included shall be an accounting of the amount of moneys
9received which were spent for infrastructure purposes pursuant
10to chapter 423E or this chapter, as applicable.
11 Sec. 41. REPEAL. Sections 276.11 and 276.12, Code 2023,
12are repealed.
13 Sec. 42. REPEAL. Chapter 300, Code 2023, is repealed.
14 Sec. 43. EFFECTIVE DATE. Except as otherwise provided in
15this division of this Act, this division of this Act takes
16effect July 1, 2027.
17 Sec. 44. EFFECTIVE DATE. The following, being deemed of
18immediate importance, takes effect upon enactment:
19The section of this division of this Act enacting section
20300.2, subsection 4.
21 Sec. 45. APPLICABILITY. Except for the section of this
22division of this Act enacting section 300.2, subsection 4, this
23division of this Act applies to fiscal years beginning on or
24after July 1, 2027.
25DIVISION IV
26BRUCELLOSIS AND TUBERCULOSIS ERADICATION FUND — LEVY
27 Sec. 46. Section 165.18, subsections 2 and 3, Code 2023, are
28amended by striking the subsections.
29 Sec. 47. Section 331.512, subsection 1, paragraph e, Code
302023, is amended by striking the paragraph.
31 Sec. 48. Section 331.559, subsection 2, Code 2023, is
32amended by striking the subsection.
33 Sec. 49. EFFECTIVE DATE. This division of this Act takes
34effect July 1, 2024.
35 Sec. 50. APPLICABILITY. This division of this Act applies
-26-1to property taxes due and payable in fiscal years beginning on
2or after July 1, 2024.
3DIVISION V
4COUNTY SEATS
5 Sec. 51. Section 331.301, Code 2023, is amended by adding
6the following new subsection:
7 NEW SUBSECTION. 9A. Pursuant to the general grant of home
8rule power conferred by the Constitution of the State of Iowa
9and if not inconsistent with the laws of the general assembly,
10a county that has designated more than one city to be a county
11seat may consolidate or reduce the number of county seats by
12ordinance.
13 Sec. 52. REPEAL. 1848 Iowa Acts, First Extraordinary
14Session, chapter 52, is repealed.
15 Sec. 53. EFFECTIVE DATE. This division of this Act, being
16deemed of immediate importance, takes effect upon enactment.
17EXPLANATION
18The inclusion of this explanation does not constitute agreement with
19the explanation’s substance by the members of the general assembly.
20This bill relates to local government property taxes,
21financial authority, and budgets.
22DIVISION I — COUNTY PROPERTY TAXES AND BUDGETS. Code
23section 331.301(10) governs a county’s authority to enter into
24leases and lease-purchase contracts and, in part, subjects
25leases and lease-purchase agreements for real property to
26procedures for approval at an election following a petition
27if the principal amount of the contract exceeds specified
28thresholds categorized by county population. The bill reduces
29the thresholds for each category by 30 percent. The bill
30similarly reduces a threshold relating to when a lease or
31lease-purchase contract is not subject to approval procedures
32similar to essential county purposes bonds.
33Code section 331.402(3) governs a county’s authority
34to enter into loan agreements and, in part, subjects loan
35agreements for real property to procedures for approval at an
-27-1election following a petition if the principal amount of the
2contract exceeds specified thresholds categorized by county
3population. The bill reduces the thresholds for each category
4by 30 percent.
5Code section 331.403 requires each county to prepare and
6file an annual financial report. The bill requires that
7beginning with the annual financial report filed by December 1,
82024, each such report shall include a list of bonds, notes,
9or other obligations issued by the county during the preceding
10fiscal year payable from any source, including the amount of
11the issuance, the project or purpose of the issuance, whether
12the issuance was approved at election or eligible to be subject
13to a petition for an election, and identification of issuances
14from the fiscal year or prior fiscal years related to the same
15project or purpose.
16Code section 331.423 establishes a levy rate limitation
17for the general county services levy of $3.50 per $1,000
18of assessed value of taxable property in the county and a
19limitation for the rural county services levy of $3.95 per
20$1,000 of assessed value of taxable property in the county.
21The bill modifies the general county services levy rate
22limitation for the fiscal year beginning July 1, 2024, to be a
23levy rate not to exceed the sum of $3.50 plus the levy rate of
24the county under Code section 331.424, subsection 1, paragraph
25“a”, subparagraph (6) (maintenance and operation of courts),
26Code 2023, for the fiscal year beginning July 1, 2023, plus
27the levy rate for general county services under Code section
28331.426, Code 2023, for the fiscal year beginning July 1, 2023.
29The bill then provides that for each fiscal year beginning on
30or after July 1, 2025, the general county services levy rate
31limitation is the greater of $3.50 per $1,000 of taxable value
32and the limitation determined for the preceding fiscal year,
33as adjusted under the bill. If the total assessed value used
34to calculate taxes for general county services for the budget
35year exceeds 102.5 percent of the total assessed value used
-28-1to calculate taxes for the current fiscal year, the levy rate
2amount per $1,000 for the preceding fiscal year, if applicable,
3shall be reduced to a rate that is equal to 1,000 multiplied
4by the quotient of the current fiscal year’s actual property
5tax dollars certified for levy divided by 102.5 percent of the
6total assessed value used to calculate taxes for the current
7fiscal year.
8In addition to that levy limitation, for fiscal years
9beginning on or after July 1, 2025, if the county’s actual levy
10rate for general county services for the current fiscal year
11is $3.50 or less per $1,000 of assessed value and the total
12assessed value used to calculate taxes for the budget year
13exceeds 103.25 percent of the total assessed value used to
14calculate taxes for the current fiscal year, the levy rate for
15general county services for the budget year shall not exceed
16the rate per $1,000 of assessed value that is equal to 1,000
17multiplied by the quotient of the current fiscal year’s actual
18property tax dollars certified for levy for general county
19services divided by 103.25 percent of the total assessed value
20used to calculate taxes for the current fiscal year.
21The bill similarly modifies the maximum levy rate for rural
22county services for the fiscal year beginning July 1, 2024, to
23be a levy rate equal to the sum of $3.95 plus the rate levied
24for rural county services under section 331.426, Code 2023, for
25the fiscal year beginning July 1, 2023. For each fiscal year
26beginning on or after July 1, 2025, the maximum levy rate is
27the greater of $3.95 and the levy rate for the preceding fiscal
28year as adjusted under the bill. The bill provides that if the
29total assessed value used to calculate taxes for rural county
30services for the budget year exceeds 102.5 percent of the total
31assessed value used to calculate taxes for the current fiscal
32year, the levy rate, as previously adjusted under the bill,
33if applicable, shall be reduced to a rate that is equal to
341,000 multiplied by the quotient of the current fiscal year’s
35actual property tax dollars certified for levy for rural county
-29-1services divided by 102.5 percent of the total assessed value
2used to calculate taxes for the current fiscal year.
3In addition to that levy limitation, for fiscal years
4beginning on or after July 1, 2025, if the county’s actual
5levy rate for rural county services for the current fiscal
6year is $3.95 or less per $1,000 of assessed value and the
7total assessed value used to calculate taxes for the budget
8year exceeds 103.25 percent of the total assessed value used
9to calculate taxes for the current fiscal year, the levy
10rate for rural county services for the budget year shall not
11exceed the rate per $1,000 of assessed value that is equal to
121,000 multiplied by the quotient of the current fiscal year’s
13actual property tax dollars certified for levy for rural county
14services divided by 103.25 percent of the total assessed value
15used to calculate taxes for the current fiscal year.
16The bill strikes the authority of a county to impose a
17supplemental levy under Code section 331.424 for maintenance
18and operation of the courts and, if the county imposed such a
19levy in the fiscal year beginning July 1, 2023, increases the
20county’s general services levy rate authority by such levy rate
21amount as previously described.
22Code section 331.426 authorizes a county experiencing
23unusual circumstances, including increases in population,
24natural disaster or emergency, problems relating to major
25new functions required by state law, staffing problems, need
26for additional moneys to continue certain programs, need for
27new county programs that provide a substantial benefit to
28residents, and reduced or unusually low growth rate in the
29county, to levy additional property taxes for general county
30services or rural county services. If the county imposed such
31levies in the fiscal year beginning July 1, 2023, the bill
32increases the county’s applicable general services levy rate
33authority by such levy rate amounts as previously described.
34The bill strikes authority to levy such additional taxes for
35all unusual circumstances except a natural disaster.
-30- 1The bill modifies the provisions of Code section 331.433A
2relating to the approval procedures for a county budget to
3account for the modification of levy amount and rate changes
4in the bill.
5Code section 331.441(2)(b) defines “essential county
6purpose” to include public buildings, including the site
7or grounds of, and the erection, equipment, remodeling,
8or reconstruction of, and additions or extensions to the
9buildings, and including the provision and maintenance of
10juvenile detention or shelter care facilities, when the
11cost does not exceed specified thresholds based on county
12population. The bill reduces each of the threshold amounts by
1330 percent. The bill also strikes “[a]ny other purpose which
14is necessary for the operation of the county or the health and
15welfare of its citizens” from the definition of “general county
16purpose” under Code section 331.441(2)(c).
17Code section 331.442 governs county procedures for the
18issuance of general county purpose bonds. In lieu of calling
19an election, the board of supervisors may institute proceedings
20for the issuance of bonds for a general county purpose by
21publishing a notice of the proposal to issue the bonds,
22including a statement of the amount and purpose of the bonds,
23and the right to petition for an election if the amount of the
24bonds is less than specified threshold amounts based on county
25population. The bill reduces each of the threshold amounts by
2630 percent.
27Division I of the bill takes effect July 1, 2024, and applies
28to county taxes and budgets for fiscal years beginning on or
29after July 1, 2024.
30DIVISION II — CITY PROPERTY TAXES. Code section 384.1
31establishes the city general fund levy and limits the levy rate
32on property that is not used and assessed for agricultural or
33horticultural purposes at $8.10 per $1,000 of taxable value.
34This bill modifies the levy rate limit for the fiscal year
35beginning July 1, 2024, to not exceed the sum of $8.10 plus the
-31-1following for the applicable city: (1) the levy rate under
2Code section 384.8, Code 2023, for the fiscal year beginning
3July 1, 2023; (2) the total levy rate levied by or on behalf of
4the city under Code section 384.12, subsections 1, 2, 3, 4, 5,
56, 7, 8, 9, 11, 12, 13, 15, 16, 18, and 20, Code 2023, for the
6fiscal year beginning July 1, 2023; and (3) the levy rate of
7the city under Code section 24.48, Code 2023, for the fiscal
8year beginning July 1, 2023.
9For each fiscal year beginning on or after July 1, 2025, a
10city’s tax levy rate for the general fund, except for levies
11authorized in Code section 384.12, shall not exceed in any tax
12year the greater of $8.10 per $1,000 and the amount determined
13under the bill for the prior year, as adjusted under the bill.
14The bill provides that if the total assessed value used to
15calculate taxes for the budget year exceeds 102.5 percent
16of the total assessed value used to calculate taxes for the
17current fiscal year, the levy rate, as previously adjusted
18under the bill, if applicable, shall be reduced to a rate that
19is equal to 1,000 multiplied by the quotient of the current
20fiscal year’s actual property tax dollars certified for levy
21under Code section 384.1 divided by 102.5 percent of the total
22assessed value used to calculate taxes for the current fiscal
23year.
24In addition to that levy limitation, for fiscal years
25beginning on or after July 1, 2025, if the city’s actual levy
26rate for the general fund for the current fiscal year is $8.10
27or less per $1,000 of assessed value and the total assessed
28value used to calculate taxes for the budget year exceeds
29103.25 percent of the total assessed value used to calculate
30taxes for the current fiscal year, the levy rate for the
31general fund for the budget year shall not exceed the rate per
32$1,000 of assessed value that is equal to 1,000 multiplied by
33the quotient of the current fiscal year’s actual property tax
34dollars certified for levy under Code section 384.1 divided by
35103.25 percent of the total assessed value used to calculate
-32-1taxes for the current fiscal year.
2Code section 384.12 authorizes a city to levy various
3other additional taxes that under current law are not subject
4to the $8.10 levy limit. The bill strikes several of the
5purposes for which a city may levy an additional tax and if
6the county imposed such levies in the fiscal year beginning
7July 1, 2023, increases the county’s general services levy rate
8authority under Code section 384.1 by such levy rate amounts
9as previously described.
10Code section 24.48, in part, authorizes a city with a reduced
11property tax base or unusually low growth rate or experiencing
12unusual circumstances, including increases in population,
13natural disaster or emergency, problems relating to major new
14functions required by state law, staffing problems, need for
15additional moneys to continue certain programs, and need for
16new programs that provide a substantial benefit to residents,
17to appeal to the state appeal board to suspend levy limitations
18and levy additional property taxes. The bill provides that for
19budgets for fiscal years beginning on or after July 1, 2024,
20suspension of the statutory property tax levy limitations for a
21city shall only be approved for a natural disaster.
22The bill repeals Code section 384.8, which authorizes a
23$0.27 city emergency fund levy and makes corresponding changes
24to other provisions of law relating to the change in funding
25for emergency medical services districts under Code chapter
26357G and the modification of city supplemental property tax
27levies and the city’s general fund levy under Code section
28384.1.
29Code section 384.22 requires each city to prepare and
30publish an annual financial report. The bill requires that
31beginning with the annual financial report published by
32December 1, 2024, each such report shall include a list of
33bonds, notes, or other obligations issued by the city during
34the preceding fiscal year payable from any source, including
35the amount of the issuance, the project or purpose of the
-33-1issuance, whether the issuance was approved at election or
2eligible to be subject to a petition for an election, and
3identification of issuances from the fiscal year or prior
4fiscal years related to the same project or purpose.
5The bill strikes “[a]ny other purpose which is necessary
6for the operation of the city or the health and welfare of its
7citizens” from the definition of “general corporate purpose”
8under Code section 384.24(4).
9Code section 384.24A(4) governs a city’s authority to enter
10into loan agreements and, in part, subjects loan agreements
11for real property to procedures for approval at an election
12following a petition if the principal amount of the contract
13exceeds specified thresholds categorized by city population.
14The bill reduces the contract amount thresholds for each
15category by 30 percent.
16Code section 384.26 governs city procedures for the issuance
17of city general corporate purpose bonds. In lieu of calling an
18election, the city council may institute proceedings for the
19issuance of bonds for a general corporate purpose by publishing
20a notice of the proposal to issue the bonds, including a
21statement of the amount and purpose of the bonds, and the right
22to petition for an election if the amount of the bonds is less
23than specified threshold amounts based on city population. The
24bill reduces each of the threshold amounts by 30 percent.
25Division II takes effect July 1, 2024, and applies to taxes
26and budgets for fiscal years beginning on or after July 1,
272024.
28DIVISION III — PUBLIC EDUCATION AND RECREATIONAL TAX LEVY.
29 Code chapter 300 authorizes the imposition of a voter-approved
30property tax levy for the establishment and maintenance
31of public recreation places and playgrounds, and necessary
32accommodations for the recreation places and playgrounds, in
33the public school buildings and grounds of the district. Code
34chapter 300 also authorizes each school board to cooperate
35with public or private agencies having custody and management
-34-1of public parks or buildings or grounds open to the public
2for the supervision and instruction necessary to carry on
3public educational and recreational activities in the parks,
4buildings, and grounds located within the district. Such
5activities may be supported by imposition of a voter-approved
6property tax levy not to exceed 13.5 cents per $1,000 of
7assessed value. The property tax levy under Code chapter 300
8also provides financial support to community education programs
9established under Code chapter 276, which provide educational,
10recreational, cultural, and other community services and
11programs.
12The bill repeals Code chapter 300 and makes corresponding
13amendments to other provisions of law effective July 1, 2027,
14and applies to fiscal years beginning on or after July 1,
152027. The bill provides that financial support for a community
16education program under Code chapter 276 may be provided from
17funds received by the school district under Code chapter 423F.
18 By operation of the definition of “school infrastructure” under
19Code section 423F.3(6)(a)(1), moneys received by a school
20district from the secure an advanced vision for education fund
21may continue to be utilized for activities previously provided
22for under Code chapter 300 and Code chapter 276.
23The bill prohibits a levy under Code chapter 300 from being
24approved at election on or after the effective date of the
25provision in the bill, which is effective upon enactment, and
26limits the rate at which previously approved levies can be
27imposed for the fiscal year beginning July 1, 2026.
28The bill also provides that moneys available in the public
29education and recreation levy fund at the conclusion of the
30fiscal year beginning July 1, 2026, and ending June 30, 2026,
31shall be expended by the school corporation for the purposes
32authorized under Code chapter 300, Code 2023.
33DIVISION IV — BRUCELLOSIS AND TUBERCULOSIS ERADICATION
34FUND — LEVY. Code section 165.18 authorizes the secretary of
35agriculture to direct the board of supervisors of each county
-35-1to levy an amount sufficient to pay the expenses estimated to
2be incurred from the brucellosis and tuberculosis eradication
3fund for the following fiscal year, subject to a maximum levy
4of 33.75 cents per $1,000. The bill strikes the authority to
5levy such a tax beginning with property taxes due and payable
6in fiscal years beginning July 1, 2024.
7DIVISION V — COUNTY SEATS. The bill specifies that pursuant
8to the general grant of home rule power conferred by the
9Constitution of the State of Iowa and if not inconsistent with
10the laws of the general assembly, a county that has designated
11more than one city to be a county seat may consolidate or
12reduce the number of county seats by ordinance. The bill also
13repeals 1848 Iowa Acts, First Extraordinary Session, chapter
1452, which in part required Lee County to maintain a district
15court at Fort Madison and the city of Keokuk, required the
16clerk of district court to keep an office at Fort Madison and
17the city of Keokuk, and required the sheriff of Lee County to
18keep an office at Fort Madison and the city of Keokuk.
19Division V of the bill takes effect upon enactment.
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