Text: H03029 Text: H03031 Text: H03000 - H03099 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 69, as passed by the Senate, as 1 2 follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 "DIVISION I 1 6 INCOME TAX REDUCTION AND SPECIAL FUNDS 1 7 Section 1. Section 422.4, subsection 1, paragraphs 1 8 b and c, Code 1995, are amended to read as follows: 1 9 b. "Cumulative inflation factor" means the product 1 10 of the annual inflation factor for the19881995 1 11 calendar year and all annual inflation factors for 1 12 subsequent calendar years as determined pursuant to 1 13 this subsection. The cumulative inflation factor 1 14 applies to all tax years beginning on or after January 1 15 1 of the calendar year for which the latest annual 1 16 inflation factor has been determined. 1 17 c. The annual inflation factor for each of the 1 1819881995, 1996, 1997, 1998, and 1999 calendaryear1 19 years is one hundred percent. 1 20 Sec. 2. Section 422.5, subsection 1, unnumbered 1 21 paragraph 1, and paragraphs a through i, Code 1995, 1 22 are amended by striking the unnumbered paragraph and 1 23 lettered paragraphs and inserting in lieu thereof the 1 24 following: 1 25 A tax is imposed upon every resident and 1 26 nonresident of the state which tax shall be levied, 1 27 collected, and paid annually upon and with respect to 1 28 the entire taxable income as defined in this division 1 29 at rates and for tax years beginning in the following 1 30 calendar years as follows: 1 31 On all taxable 1 32 income exceeding 1 33 the beginning CALENDAR YEARS 1 34 amount through 1999 and 1 35 the ending subsequent 1 36 amount: 1995 1996 1997 1998 years 1 37 a. $ 0- 1,060 .4 % .4 % .35% .35% .35% 1 38 b. 1,060- 2,120 .8 .75 .75 .7 .7 1 39 c. 2,120- 4,240 2.65 2.55 2.45 2.35 2.3 1 40 d. 4,240- 9,540 4.9 4.75 4.55 4.35 4.25 1 41 e. 9,540-15,900 6.65 6.45 6.2 5.95 5.8 1 42 f. 15,900-21,200 7.05 6.8 6.6 6.3 6.1 1 43 g. 21,200-31,800 7.35 7.15 6.9 6.6 6.4 1 44 h. 31,800-47,700 8.6 8.3 8.05 7.65 7.5 1 45 i. 47,700+ 9.75 9.45 9.15 8.7 8.5 1 46 Sec. 3. Section 8.56, subsection 1, Code 1995, is 1 47 amended to read as follows: 1 48 1. A cash reserve fund is created in the state 1 49 treasury. The cash reserve fund shall be separate 1 50 from the general fund of the state and shall not be 2 1 considered part of the general fund of the state 2 2 except in determining the cash position of the state 2 3 as provided in subsection 3. The moneys in the cash 2 4 reserve fund are not subject to section 8.33 and shall 2 5 not be transferred, used, obligated, appropriated, or 2 6 otherwise encumbered except as provided in this 2 7 section. Notwithstanding section 12C.7, subsection 2, 2 8 interest or earnings on moneys deposited in the cash 2 9 reserve fund shall be credited to the rebuild Iowa 2 10economic emergency fundinfrastructure account created 2 11 in section 8.57. Moneys in the cash reserve fund may 2 12 be used for cash flow purposes provided that any 2 13 moneys so allocated are returned to the cash reserve 2 14 fund by the end of each fiscal year. However, the 2 15 fund shall be considered a special account for the 2 16 purposes of section 8.53. 2 17 Sec. 4. Section 8.56, subsection 4, paragraph b, 2 18 Code 1995, is amended to read as follows: 2 19 b. In addition to the requirements of paragraph 2 20 "a", an appropriation shall not be made from the cash 2 21 reserve fundwhich would cause the fund's balance to2 22be less than three percent of the adjusted revenue2 23estimate for the year for which the appropriation is2 24madeunless the bill or joint resolution making the 2 25 appropriation is approved by vote of at least three- 2 26 fifths of the members of both chambers of the general 2 27 assembly and is signed by the governor. 2 28 Sec. 5. Section 8.57, subsection 1, paragraph a, 2 29 Code 1995, is amended by striking the paragraph and 2 30 inserting in lieu thereof the following: 2 31 a. The cash reserve goal percentage for fiscal 2 32 years beginning on or after July 1, 1995, is five 2 33 percent of the adjusted revenue estimate. For each 2 34 fiscal year beginning on or after July 1, 1995, in 2 35 which the appropriation of the surplus existing in the 2 36 general fund of the state at the conclusion of the 2 37 prior fiscal year pursuant to paragraph "b" was not 2 38 sufficient for the cash reserve fund to reach the cash 2 39 reserve goal percentage for the current fiscal year, 2 40 there is appropriated from the general fund of the 2 41 state an amount to be determined as follows: 2 42 (1) If the balance of the cash reserve fund in the 2 43 current fiscal year is not more than four percent of 2 44 the adjusted revenue estimate for the current fiscal 2 45 year, the amount of the appropriation under this 2 46 lettered paragraph is one percent of the adjusted 2 47 revenue estimate for the current fiscal year. 2 48 (2) If the balance of the cash reserve fund in the 2 49 current fiscal year is more than four percent but less 2 50 than five percent of the adjusted revenue estimate for 3 1 that fiscal year, the amount of the appropriation 3 2 under this lettered paragraph is the amount necessary 3 3 for the cash reserve fund to reach five percent of the 3 4 adjusted revenue estimate for the current fiscal year. 3 5 (3) The moneys appropriated under this lettered 3 6 paragraph shall be credited in equal and proportionate 3 7 amounts in each quarter of the current fiscal year. 3 8 Sec. 6. Section 8.57, subsection 1, paragraph b, 3 9 Code 1995, is amended to read as follows: 3 10 b.Commencing June 30, 1993, theThe surplus 3 11 existing in the general fund of the state at the 3 12 conclusion of the fiscal year is appropriated for 3 13 distribution in the succeeding fiscal year as provided 3 14 inthis sectionsubsections 2 and 3. Moneys credited 3 15 to the cash reserve fund from the appropriation made 3 16 in this paragraph shall not exceed the amount 3 17 necessary for the cash reserve fund to reach the cash 3 18 reserve goal percentage for the succeeding fiscal 3 19 year. As used in this paragraph, "surplus" means the 3 20 excess of revenues and other financing sources over 3 21 expenditures and other financing uses for the general 3 22 fund of the state in a fiscal year. 3 23 Sec. 7. NEW SECTION. 8.57A PERSONAL INCOME TAX 3 24 RATE REDUCTION REPLACEMENT FUND. 3 25 1. The personal income tax rate reduction 3 26 replacement fund is created in the state treasury 3 27 under the authority of the department of management. 3 28 The fund shall be separate from the general fund of 3 29 the state and shall not be considered part of the 3 30 general fund of the state except in determining the 3 31 cash position of the state for payment of state 3 32 obligations. The moneys in the fund are not subject 3 33 to the provisions of section 8.33 and shall not be 3 34 transferred, used, obligated, appropriated, or 3 35 otherwise encumbered except as provided in this 3 36 section. Moneys in the fund may be used for cash flow 3 37 purposes provided that any moneys so allocated are 3 38 returned to the fund by the end of each fiscal year. 3 39 However, the fund shall be considered a special 3 40 account for the purposes of section 8.53, relating to 3 41 elimination of any GAAP deficit. The fund is created 3 42 upon the effective date of this section, and shall 3 43 remain in existence until the close of the fiscal year 3 44 beginning July 1, 1999. 3 45 2. The provisions of this subsection apply for the 3 46 fiscal years beginning July 1 of 1994, 1995, 1996, 3 47 1997, and 1998. Notwithstanding the provisions of 3 48 section 8.57, subsection 3, for each of the designated 3 49 fiscal years, moneys remaining following the 3 50 appropriations made pursuant to section 8.57, 4 1 subsection 1, shall not be appropriated to the Iowa 4 2 economic emergency fund but are instead appropriated 4 3 to the personal income tax rate reduction replacement 4 4 fund. 4 5 3. Effective for the fiscal year beginning July 1, 4 6 1995, and the subsequent three fiscal years, on or 4 7 before December 31 of each of the fiscal years, the 4 8 state revenue estimating conference created in section 4 9 8.22A shall certify an estimate of the net change in 4 10 revenues deposited into the general fund of the state 4 11 for that fiscal year due to the personal income tax 4 12 rate reduction implemented pursuant to section 422.5. 4 13 The director of the department of management shall 4 14 transfer not more than the certified amount from the 4 15 personal income tax rate reduction replacement fund to 4 16 the general fund of the state. Prior to the transfer, 4 17 the director shall determine whether the balance of 4 18 the general fund of the state is sufficient to absorb 4 19 the revenue change, and if the certified balance is 4 20 sufficient the director may defer the transfer to a 4 21 succeeding fiscal year. Moneys transferred to the 4 22 general fund of the state pursuant to this section 4 23 shall be added to the general fund expenditure 4 24 limitation, to the extent not already included, for 4 25 the fiscal year in which the transfer takes place and 4 26 ninety-nine percent of the transferred amount is 4 27 available for expenditure as directed by the general 4 28 assembly. 4 29 4. Notwithstanding section 12C.7, subsection 2, 4 30 interest or earnings on moneys deposited in the 4 31 personal income tax rate reduction replacement fund 4 32 shall be credited to the rebuild Iowa infrastructure 4 33 account created in section 8.57. 4 34 5. This section is repealed September 1, 2000. 4 35 Sec. 8. TRANSFER TO INFRASTRUCTURE ACCOUNT. 4 36 Moneys in the Iowa economic emergency fund, created in 4 37 section 8.55, at the conclusion of the fiscal year 4 38 beginning July 1, 1994, shall be transferred to the 4 39 rebuild Iowa infrastructure account. 4 40 Sec. 9. EFFECTIVE DATES. 4 41 1. Sections 1 and 2 of this Act, being deemed of 4 42 immediate importance, take effect upon enactment and 4 43 apply retroactively to January 1, 1995, for tax years 4 44 beginning on or after that date. 4 45 2. Sections 3 through 9 of this Act, being deemed 4 46 of immediate importance, take effect upon enactment. 4 47 DIVISION II 4 48 SUBCHAPTER S CORPORATIONS 4 49 Sec. 10. Section 422.5, subsection 1, paragraph j, 4 50 Code 1995, is amended by adding the following new 5 1 unnumbered paragraph: 5 2 NEW UNNUMBERED PARAGRAPH. The tax imposed upon the 5 3 taxable income of a resident shareholder in a 5 4 corporation which has in effect for the tax year an 5 5 election under subchapter S of the Internal Revenue 5 6 Code and carries on business within and without the 5 7 state shall be computed by reducing the amount 5 8 determined pursuant to paragraphs "a" through "i" by 5 9 the amounts of nonrefundable credits under this 5 10 division and by multiplying this resulting amount by a 5 11 fraction of which the resident's net income allocated 5 12 to Iowa, as determined in section 422.8, subsection 2, 5 13 paragraph "b", is the numerator and the resident's 5 14 total net income computed under section 422.7 is the 5 15 denominator. This paragraph also applies to 5 16 individuals who are residents of Iowa for less than 5 17 the entire tax year. 5 18 Sec. 11. Section 422.5, subsection 1, paragraph k, 5 19 unnumbered paragraph 4, Code 1995, is amended to read 5 20 as follows: 5 21 In the case of a resident, including a resident 5 22 estate or trust, the state's apportioned share of the 5 23 state alternative minimum tax is one hundred percent 5 24 of the state alternative minimum tax computed in this 5 25 subsection. In the case of a resident or part year 5 26 resident shareholder in a corporation which has in 5 27 effect for the tax year an election under subchapter S 5 28 of the Internal Revenue Code and carries on business 5 29 within and without the state, a nonresident, including 5 30 a nonresident estate or trust, or an individual, 5 31 estate, or trust that is domiciled in the state for 5 32 less than the entire tax year, the state's apportioned 5 33 share of the state alternative minimum tax is the 5 34 amount of tax computed under this subsection, reduced 5 35 by the applicable credits in sections 422.10 through 5 36 422.12 and this result multiplied by a fraction with a 5 37 numerator of the sum of state net income allocated to 5 38 Iowa as determined in section 422.8, subsection 2, 5 39 paragraph "a" or "b" as applicable, plus tax 5 40 preference items, adjustments, and losses under 5 41 subparagraph (1) attributable to Iowa and with a 5 42 denominator of the sum of total net income computed 5 43 under section 422.7 plus all tax preference items, 5 44 adjustments, and losses under subparagraph (1). In 5 45 computing this fraction, those items excludable under 5 46 subparagraph (1) shall not be used in computing the 5 47 tax preference items. Married taxpayers electing to 5 48 file separate returns or separately on a combined 5 49 return must allocate the minimum tax computed in this 5 50 subsection in the proportion that each spouse's 6 1 respective preference items, adjustments, and losses 6 2 under subparagraph (1) bear to the combined preference 6 3 items, adjustments, and losses under subparagraph (1) 6 4 of both spouses. 6 5 Sec. 12. Section 422.7, Code 1995, is amended by 6 6 adding the following new subsection: 6 7 NEW SUBSECTION. 32. Resident shareholders of a 6 8 corporation which has in effect an election under 6 9 subchapter S of the Internal Revenue Code shall add 6 10 their proportionate share of a deemed distribution of 6 11 current year income, upon which Iowa income tax has 6 12 not been paid as determined under rules of the 6 13 director, to the extent that the salaries, wages, or 6 14 other compensation for services performed by all 6 15 shareholders does not equal ten percent of net income 6 16 of the corporation computed in accordance with section 6 17 422.35 and considering items of income and expense 6 18 which pass directly to the shareholders under 6 19 provisions of the Internal Revenue Code before 6 20 deduction of shareholders' salaries, wages, or other 6 21 compensation for services performed. In addition 6 22 there shall be added any cash or the value of any 6 23 property distributions made to the extent they are 6 24 made from income upon which Iowa income tax has not 6 25 been paid as determined under rules of the director. 6 26 Sec. 13. Section 422.8, subsection 2, Code 1995, 6 27 is amended to read as follows: 6 28 2. a. Nonresident's net income allocated to Iowa 6 29 is the net income, or portion thereof, which is 6 30 derived from a business, trade, profession, or 6 31 occupation carried on within this state or income from 6 32 any property, trust, estate, or other source within 6 33 Iowa. However, income derived from a business, trade, 6 34 profession, or occupation carried on within this state 6 35 and income from any property, trust, estate, or other 6 36 source within Iowa shall not include distributions 6 37 from pensions, including defined benefit or defined 6 38 contribution plans, annuities, individual retirement 6 39 accounts, and deferred compensation plans or any 6 40 earnings attributable thereto so long as the 6 41 distribution is directly related to an individual's 6 42 documented retirement and received while the 6 43 individual is a nonresident of this state. If a 6 44 business, trade, profession, or occupation is carried 6 45 on partly within and partly without the state, only 6 46 the portion of the net income which is fairly and 6 47 equitably attributable to that part of the business, 6 48 trade, profession, or occupation carried on within the 6 49 state is allocated to Iowa for purposes of section 6 50 422.5, subsection 1, paragraph "j", and section 422.13 7 1 and income from any property, trust, estate, or other 7 2 source partly within and partly without the state is 7 3 allocated to Iowa in the same manner, except that 7 4 annuities, interest on bank deposits and interest- 7 5 bearing obligations, and dividends are allocated to 7 6 Iowa only to the extent to which they are derived from 7 7 a business, trade, profession, or occupation carried 7 8 on within the state. 7 9 b. A resident's income allocable to Iowa is the 7 10 income determined under section 422.7 reduced by the 7 11 net income or loss of a corporation which is fairly 7 12 and equitably attributable without the state under 7 13 section 422.33, subsections 2 and 3. For the purposes 7 14 of this paragraph, "corporation" means a corporation 7 15 which has in effect for the tax year an election under 7 16 subchapter S of the Internal Revenue Code and carries 7 17 on business partly within and partly without the 7 18 state. This paragraph also applies to individuals who 7 19 are residents of Iowa for less than the entire tax 7 20 year. 7 21 Sec. 14. Section 422.8, Code 1995, is amended by 7 22 adding the following new subsection: 7 23 NEW SUBSECTION. 6. If the resident or part year 7 24 resident is a shareholder of a corporation which has 7 25 in effect an election under subchapter S of the 7 26 Internal Revenue Code, subsections 1 and 3 do not 7 27 apply to any income taxes paid to another state or 7 28 foreign country on the income from the corporation 7 29 which has in effect an election under subchapter S of 7 30 the Internal Revenue Code. 7 31 Sec. 15. This division of this Act, being deemed 7 32 of immediate importance, takes effect upon enactment 7 33 and applies retroactively to January 1, 1995, for tax 7 34 years beginning on or after that date. 7 35 DIVISION III 7 36 MACHINERY AND EQUIPMENT 7 37 EXEMPTION AND REPLACEMENT FUNDS 7 38 Sec. 16. Section 427B.17, Code 1995, is amended by 7 39 striking the section and inserting in lieu thereof the 7 40 following: 7 41 427B.17 PROPERTY SUBJECT TO SPECIAL VALUATION. 7 42 1. Property defined in section 427A.1, subsection 7 43 1, paragraphs "e" and "j", shall be valued by the 7 44 local assessor as follows: 7 45 a. For the assessment year beginning January 1, 7 46 1995, at twenty-six percent of the net acquisition 7 47 cost. 7 48 b. For the assessment year beginning January 1, 7 49 1996, at twenty-two percent of the net acquisition 7 50 cost. 8 1 c. For the assessment year beginning January 1, 8 2 1997, at eighteen percent of the net acquisition cost. 8 3 d. For the assessment year beginning January 1, 8 4 1998, at fourteen percent of the net acquisition cost. 8 5 e. For the assessment year beginning January 1, 8 6 1999, at ten percent of the net acquisition cost. 8 7 f. For the assessment year beginning January 1, 8 8 2000, at six percent of the net acquisition cost. 8 9 g. For the assessment year beginning January 1, 8 10 2001, and all subsequent assessment years, at zero 8 11 percent of the net acquisition cost. 8 12 2. For purposes of this section: 8 13 a. Property assessed by the department of revenue 8 14 and finance pursuant to sections 428.24 to 428.29, or 8 15 chapters 433, 434, and 436 to 438 shall not receive 8 16 the benefits of this section. 8 17 b. The net acquisition cost of property acquired 8 18 before January 1, 1995, which was owned or used by a 8 19 related person shall be the net acquisition cost of 8 20 the transferor of the property. 8 21 c. "Related person" means a person who owns or 8 22 controls the taxpayer's business and another business 8 23 entity from which property is acquired or leased or to 8 24 which property is sold or leased. Business entities 8 25 are owned or controlled by the same person if the same 8 26 person directly or indirectly owns or controls fifty 8 27 percent or more of the assets or any class of stock or 8 28 who directly or indirectly has an interest of fifty 8 29 percent or more in the ownership or profits. 8 30 d. "Net acquisition cost" means the acquired cost 8 31 of the property, including all foundations and 8 32 installation cost less any excess cost adjustment. 8 33 3. Property assessed pursuant to this section 8 34 shall not be eligible to receive a partial exemption 8 35 under sections 427B.1 to 427B.6. 8 36 4. The taxpayer's valuation of property defined in 8 37 section 427A.1, subsection 1, paragraphs "e" and "j", 8 38 and located in an urban renewal area for which an 8 39 urban renewal plan provides for the division of taxes 8 40 as provided in section 403.19 to pay the principal and 8 41 interest on loans, advances, bonds issued under the 8 42 authority of section 403.9, subsection 1, or 8 43 indebtedness incurred by a city or county to finance 8 44 an urban renewal project within the urban renewal 8 45 area, if such loans, advances, or bonds were issued or 8 46 indebtedness incurred, on or after January 1, 1982, 8 47 and on or before June 30, 1995, shall be limited to 8 48 thirty percent of the net acquisition cost of the 8 49 property. Such property located in an urban renewal 8 50 area shall not be valued pursuant to subsection 1 9 1 until the assessment year following the calendar year 9 2 in which the obligations created by any loans, 9 3 advances, bonds, or indebtedness payable from the 9 4 division of taxes as provided in section 403.19 have 9 5 been retired. The taxpayer's valuation for such 9 6 property shall then be the valuation specified in 9 7 subsection 1 for the applicable assessment year. If 9 8 the loans, advances, or bonds issued, or indebtedness 9 9 incurred between January 1, 1982, and June 30, 1995, 9 10 are refinanced or refunded after June 30, 1995, the 9 11 valuation of such property shall then be the valuation 9 12 specified in subsection 1 for the applicable 9 13 assessment year beginning with the assessment year 9 14 after the calendar year in which any of those loans, 9 15 advances, bonds, or other indebtedness are refinanced 9 16 or refunded after June 30, 1995. 9 17 5. For the purpose of dividing taxes under section 9 18 260E.4 or 260F.4, the employer's or business's 9 19 valuation of property defined in section 427A.1, 9 20 subsection 1, paragraphs "e" and "j", and used to fund 9 21 a new jobs training project which project's first 9 22 written agreement providing for a division of taxes as 9 23 provided in section 403.19, is approved on or before 9 24 June 30, 1995, shall be limited to thirty percent of 9 25 the net acquisition cost of the property. An 9 26 employer's or business's taxable property used to fund 9 27 a new jobs training project shall not be valued 9 28 pursuant to subsection 1 until the assessment year 9 29 following the calendar year in which the certificates 9 30 or other funding obligations have been retired or 9 31 escrowed. The taxpayer's valuation for such property 9 32 shall then be the valuation specified in subsection 1 9 33 for the applicable assessment year. This subsection 9 34 shall not apply to the refunding of certificates or 9 35 refinancing of other obligations issued between 9 36 January 1, 1982, and June 30, 1995. 9 37 Sec. 17. NEW SECTION. 427B.18 ASSESSOR AND 9 38 COUNTY AUDITOR DUTIES. 9 39 1. On or before July 1 of each year, the assessor 9 40 shall determine the taxpayer's valuation of the 9 41 property specified in section 427B.17 for that year 9 42 and the valuation of the property if the property were 9 43 valued, for assessment purposes, at thirty percent of 9 44 net acquisition cost and shall report the valuations 9 45 to the county auditor. 9 46 2. On or before July 1, 1996, and on or before 9 47 July 1 of each subsequent year, the county auditor 9 48 shall prepare a statement listing for each taxing 9 49 district in the county: 9 50 a. Beginning with the assessment year beginning 10 1 January 1, 1995, the difference between the assessed 10 2 valuation of property defined in section 427A.1, 10 3 subsection 1, paragraphs "e" and "j", and assessed 10 4 pursuant to section 427B.17 and the valuation of the 10 5 property if the property were valued, for assessment 10 6 purposes, at thirty percent of net acquisition cost. 10 7 b. The tax levy rate for each taxing district 10 8 levied against assessments made as of January 1 of the 10 9 previous year. 10 10 c. The industrial machinery, equipment and 10 11 computers tax replacement claim for each taxing 10 12 district, which is equal to the amount determined 10 13 pursuant to paragraph "a", multiplied by the tax rate 10 14 specified in paragraph "b". 10 15 3. The county auditor shall certify and forward 10 16 one copy of the statement to the department of revenue 10 17 and finance not later than July 1 of each year. 10 18 Sec. 18. NEW SECTION. 427B.19 REPLACEMENT. 10 19 Each county treasurer shall be paid an amount equal 10 20 to the following percentages of the industrial 10 21 machinery, equipment and computers tax replacement 10 22 claim for that county determined pursuant to section 10 23 427B.18, subsection 2: 10 24 1. For the fiscal year beginning July 1, 1996, 10 25 ninety percent. 10 26 2. For the fiscal year beginning July 1, 1997, 10 27 seventy-five percent. 10 28 3. For the fiscal year beginning July 1, 1998, 10 29 sixty percent. 10 30 4. For the fiscal year beginning July 1, 1999, 10 31 forty-five percent. 10 32 5. For the fiscal year beginning July 1, 2000, 10 33 thirty percent. 10 34 6. For the fiscal year beginning July 1, 2001, 10 35 twenty percent. 10 36 7. For the fiscal year beginning July 1, 2002, 10 37 twenty percent. 10 38 8. For the fiscal year beginning July 1, 2003, 10 39 twenty percent. 10 40 9. For the fiscal year beginning July 1, 2004, 10 41 fifteen percent. 10 42 10. For the fiscal year beginning July 1, 2005, 10 43 ten percent. 10 44 Sec. 19. NEW SECTION. 427B.19A FUND CREATED. 10 45 1. The industrial machinery, equipment and 10 46 computers property tax replacement fund is created. 10 47 There is appropriated annually from the general fund 10 48 of the state to the department of revenue and finance 10 49 to be credited to the industrial machinery, equipment 10 50 and computers property tax replacement fund, the 11 1 amounts specified in section 427B.19B. 11 2 2. Each county treasurer shall be paid from the 11 3 fund created in this section the amount calculated 11 4 pursuant to section 427B.19. The payment shall be 11 5 made in two equal installments on or before September 11 6 30 and March 30 of each year. The county treasurer 11 7 shall apportion the payment in the manner provided in 11 8 section 445.57. 11 9 3. If an amount appropriated in section 427B.19B 11 10 for a fiscal year is insufficient to pay all claims 11 11 according to the replacement schedule in section 11 12 427B.19, the director shall prorate the disbursements 11 13 from the fund to the county treasurers and shall 11 14 notify the county auditors of the pro rata percentage 11 15 on or before August 1. If an amount appropriated in 11 16 section 427B.19B for a fiscal year is in excess of the 11 17 amount necessary to pay all claims according to the 11 18 replacement schedule in section 427B.19, the director 11 19 shall prorate the disbursements from the fund to the 11 20 county treasurers, notwithstanding the amount 11 21 calculated pursuant to section 427B.19, and shall 11 22 notify the county auditors of the pro rata percentage 11 23 on or before August 1. 11 24 4. The replacement amount paid to each school 11 25 district shall be regarded as property tax for the 11 26 purposes of the school foundation property tax levy in 11 27 section 257.3 and the additional property tax levy in 11 28 section 257.4. The department of management shall 11 29 annually make the adjustments necessary to implement 11 30 this subsection. 11 31 Sec. 20. NEW SECTION. 427B.19B APPROPRIATION. 11 32 There is appropriated in each of the following 11 33 fiscal years from the general fund of the state to the 11 34 industrial machinery, equipment and computers property 11 35 tax replacement fund the following amounts: 11 36 1. For the fiscal year beginning July 1, 1996, ten 11 37 million dollars. 11 38 2. For the fiscal year beginning July 1, 1997, 11 39 seventeen million dollars. 11 40 3. For the fiscal year beginning July 1, 1998, 11 41 twenty-three million dollars. 11 42 4. For the fiscal year beginning July 1, 1999, 11 43 twenty-three million, four hundred thousand dollars. 11 44 5. For the fiscal year beginning July 1, 2000, 11 45 twenty-one million, one hundred thousand dollars. 11 46 6. For the fiscal year beginning July 1, 2001, 11 47 eighteen million, one hundred thousand dollars. 11 48 7. For the fiscal year beginning July 1, 2002, 11 49 twenty-four million dollars. 11 50 8. For the fiscal year beginning July 1, 2003, 12 1 twenty-five million, six hundred thousand dollars. 12 2 9. For the fiscal year beginning July 1, 2004, 12 3 twenty million, four hundred thousand dollars. 12 4 10. For the fiscal year beginning July 1, 2005, 12 5 fourteen million, five hundred thousand dollars. 12 6 Sec. 21. NEW SECTION. 427B.19C PHASEOUT OF TAX. 12 7 Effective on July 1, 2002, all property taxes on 12 8 property defined in section 427A.1, subsection 1, 12 9 paragraphs "e" and "j", are repealed. For assessment 12 10 years beginning on or after January 1, 2005, such 12 11 property shall not be listed or assessed. This 12 12 section shall prevail over all inconsistent statutes. 12 13 Sec. 22. NEW SECTION. 427B.19D GUARANTEE OF 12 14 STATE REPLACEMENT FUNDS. 12 15 If for any reason an appropriation specified in 12 16 section 427B.19 is not made or the appropriation made 12 17 is less than that specified in section 427B.19 for the 12 18 applicable fiscal year, the director of the department 12 19 of management shall compute the difference between the 12 20 amount specified in section 427B.19B and the amount 12 21 actually appropriated or zero if no appropriation is 12 22 made. The department shall divide that difference by 12 23 the consolidated tax levy rate to determine the amount 12 24 of taxable value necessary to raise the difference at 12 25 that tax rate. The department shall compute an 12 26 adjustment factor as a percentage of net acquisition 12 27 cost which will yield such taxable value. The 12 28 director of revenue and finance shall review and 12 29 certify such adjustment factor to the county auditor. 12 30 The auditor shall apply such adjustment factor to all 12 31 taxable property described in section 427B.17 for the 12 32 assessment year beginning January 1 preceding the 12 33 fiscal year for which the specified appropriation was 12 34 not made. Property taxes generated by the adjustment 12 35 factor in this section shall not be considered 12 36 property tax dollars certified for purposes of the 12 37 property tax limitation in chapter 444. 12 38 DIVISION IV 12 39 PROPERTY TAX CREDITS 12 40 Sec. 23. Section 8.59, Code 1995, is amended to 12 41 read as follows: 12 42 8.59 APPROPRIATIONS FREEZE. 12 43 Notwithstanding contrary provisions of the Code, 12 44 the amounts appropriated under the applicable sections 12 45 of the Code for fiscal years commencing on or after 12 46 July 1, 1993, are limited to those amounts expended 12 47 under those sections for the fiscal year commencing 12 48 July 1, 1992. If an applicable section appropriates 12 49 moneys to be distributed to different recipients and 12 50 the operation of this section reduces the total amount 13 1 to be distributed under the applicable section, the 13 2 moneys shall be prorated among the recipients. As 13 3 used in this section, "applicable sections" means the 13 4 following sections: 53.50, 229.35, 230.8, 230.11, 13 5405A.8,411.20,425.1, 425.39, 426A.1,663.44, and 13 6 822.5. 13 7 Sec. 24. Section 405A.8, subsection 1, Code 1995, 13 8 is amended to read as follows: 13 9 1. There are appropriated from the general fund of 13 10 the state to the department of revenue and finance the 13 11 following sums to carry out the provisions of this 13 12 chapter: For the fiscal year beginning July 1, 1988, 13 13 and each subsequent fiscal year ending before July 1, 13 14 1995, sixty-seven million seven hundred thirty-seven 13 15 thousand dollars. For the fiscal year beginning July 13 16 1, 1995, and each subsequent fiscal year, sixty-five 13 17 million one hundred thousand dollars. 13 18 Sec. 25. Section 422.65, Code 1995, is amended by 13 19 striking the section and inserting in lieu thereof the 13 20 following: 13 21 422.65 DEPOSIT OF REVENUE. 13 22 All moneys received from the franchise tax on or 13 23 after July 1, 1995, shall be deposited into the 13 24 general fund of the state. 13 25 Sec. 26. Section 425.1, subsection 1, Code 1995, 13 26 is amended to read as follows: 13 27 1. A homestead credit fund is created. There is 13 28 appropriated annually from the general fund of the 13 29 state to the department of revenue and finance to be 13 30 credited to the homestead credit fund,an amount13 31sufficient to implement this chapterthe sum of 13 32 ninety-three million eight hundred thousand dollars. 13 33 The director of revenue and finance shall issue 13 34 warrants on the homestead credit fund payable to the 13 35 county treasurers of the several counties of the state 13 36 under this chapter. 13 37 If the amount in the fund is insufficient to pay 13 38 all claims in full, the director shall prorate the 13 39 amounts paid to the county treasurers based upon the 13 40 amount of certified claims submitted by each. 13 41 Sec. 27. Section 425.17, subsections 2 and 8, Code 13 42 1995, are amended to read as follows: 13 43 2. "Claimant" meanseither of the following:13 44a. Aa person filing a claim for credit or 13 45 reimbursement under this division who has attained the 13 46 age of sixty-five years on or before December 31 of 13 47 the base year, who is a surviving spouse having 13 48 attained the age of fifty-five years on or before 13 49 December 31, 1988, or who is totally disabled and was 13 50 totally disabled on or before December 31 of the base 14 1 year, and was domiciled in this state during the 14 2 entire base year, and is domiciled in this state at 14 3 the time the claim is filed or at the time of the 14 4 person's death in the case of a claim filed by the 14 5 executor or administrator of the claimant's estate. 14 6b. A person filing a claim for credit or14 7reimbursement under this division who has attained the14 8age of twenty-three years on or before December 31 of14 9the base year or was a head of household on December14 1031 of the base year, as defined in the Internal14 11Revenue Code, but has not attained the age or14 12disability status described in paragraph "a", and was14 13domiciled in this state during the entire base year,14 14and is domiciled in this state at the time the claim14 15is filed or at the time of the person's death in the14 16case of a claim filed by the executor or administrator14 17of the claimant's estate, and was not claimed as a14 18dependent on any other person's tax return for the14 19base year.14 20 "Claimant"under paragraph "a" or "b"includes a 14 21 vendee in possession under a contract for deed and may 14 22 include one or more joint tenants or tenants in 14 23 common. In the case of a claim for rent constituting 14 24 property taxes paid, the claimant shall have rented 14 25 the property during any part of the base year. If a 14 26 homestead is occupied by two or more persons, and more 14 27 than one person is able to qualify as a claimant, the 14 28 persons may determine among them who will be the 14 29 claimant. If they are unable to agree, the matter 14 30 shall be referred to the director of revenue and 14 31 finance not later than June 1 of each year and the 14 32 director's decision is final. 14 33 8. "Property taxes due" means property taxes 14 34 including any special assessments, but exclusive of 14 35 delinquent interest and charges for services, due on a 14 36 claimant's homestead in this state, but includes only 14 37 property taxes for which the claimant is liable and 14 38 which will actually be paid by the claimant. However, 14 39 if the claimant is a person whose property taxes have 14 40 been suspended under sections 427.8 and 427.9, 14 41 "property taxes due" means property taxes including 14 42 any special assessments, but exclusive of delinquent 14 43 interest and charges for services, due on a claimant's 14 44 homestead in this state, but includes only property 14 45 taxes for which the claimant is liable and which would 14 46 have to be paid by the claimant if the payment of the 14 47 taxes has not been suspended pursuant to sections 14 48 427.8 and 427.9. "Property taxes due" shall be 14 49 computed with no deduction for any credit under this 14 50 division or for any homestead credit allowed under 15 1 section 425.1. Each claim shall be based upon the 15 2 taxes due during the fiscal year next following the 15 3 base year. If a homestead is owned by two or more 15 4 persons as joint tenants or tenants in common, and one 15 5 or more persons are not members of claimant's 15 6 household, "property taxes due" is that part of 15 7 property taxes due on the homestead which equals the 15 8 ownership percentage of the claimant and the 15 9 claimant's household.The county treasurer shall15 10include with the tax receipt a statement that if the15 11owner of the property is eighteen years of age or15 12over, the person may be eligible for the credit15 13allowed under this division.If a homestead is an 15 14 integral part of a farm, the claimant may use the 15 15 total property taxes due for the larger unit. If a 15 16 homestead is an integral part of a multidwelling or 15 17 multipurpose building the property taxes due for the 15 18 purpose of this subsection shall be prorated to 15 19 reflect the portion which the value of the property 15 20 that the household occupies as its homestead is to the 15 21 value of the entire structure. For purposes of this 15 22 subsection, "unit" refers to that parcel of property 15 23 covered by a single tax statement of which the 15 24 homestead is a part. 15 25 Sec. 28. Section 425.23, subsection 1, paragraph 15 26 a, Code 1995, is amended to read as follows: 15 27a.The tentative credit or reimbursementfor a15 28claimant described in section 425.17, subsection 2,15 29paragraph "a" and paragraph "b" if no appropriation is15 30made to the fund created in section 425.40shall be 15 31 determined in accordance with the following schedule: 15 32 Percent of property taxes 15 33 due or rent constituting 15 34 property taxes paid 15 35 If the household allowed as a credit or 15 36 income is: reimbursement: 15 37 $ 0 &endash; 5,999.99....................100% 15 38 6,000 &endash; 6,999.99.................... 85 15 39 7,000 &endash; 7,999.99.................... 70 15 40 8,000 &endash; 9,999.99.................... 50 15 41 10,000 &endash; 11,999.99.................... 35 15 42 12,000 &endash; 13,999.99.................... 25 15 43 Sec. 29. Section 425.23, subsection 1, paragraph 15 44 b, Code 1995, is amended by striking the paragraph. 15 45 Sec. 30. Section 425.23, subsection 3, paragraph 15 46 a, Code 1995, is amended to read as follows: 15 47 a. A person who is eligible to file a claim for 15 48 credit for property taxes due and who has a household 15 49 income of six thousand dollars or less and who has an 15 50 unpaid special assessment levied against the homestead 16 1 may file a claim with the county treasurer that the 16 2 claimant had a household income of six thousand 16 3 dollars or less and that an unpaid special assessment 16 4 is presently levied against the homestead. The 16 5 department shall provide to the respective treasurers 16 6 the forms necessary for the administration of this 16 7 subsection. The claim shall be filed not later than 16 8 September 30 of each year. Upon the filing of the 16 9 claim, interest for late payment shall not accrue 16 10 against the amount of the unpaid special assessment 16 11 due and payable. The claim filed by the claimant 16 12 constitutes a claim for credit of an amount equal to 16 13 the actual amount due upon the unpaid special 16 14 assessment, plus interest, payable during the fiscal 16 15 year for which the claim is filed against the 16 16 homestead of the claimant.However, where the16 17claimant is an individual described in section 425.17,16 18subsection 2, paragraph "b", and the tentative credit16 19is determined according to the schedule in section16 20425.23, subsection 1, paragraph "b", subparagraph (2),16 21the claim filed constitutes a claim for credit of an16 22amount equal to one-half of the actual amount due and16 23payable during the fiscal year.The department of 16 24 revenue and finance shall, upon the filing of the 16 25 claim with the department by the treasurer, pay that 16 26 amount of the unpaid special assessment during the 16 27 current fiscal year to the treasurer. The treasurer 16 28 shall submit the claims to the director of revenue and 16 29 finance not later than October 15 of each year. The 16 30 director of revenue and finance shall certify the 16 31 amount of reimbursement due each county for unpaid 16 32 special assessment credits allowed under this 16 33 subsection. The amount of reimbursement due each 16 34 county shall be paid by the director of revenue and 16 35 finance on October 20 of each year, drawn upon 16 36 warrants payable to the respective treasurer. There 16 37 is appropriated annually from the general fund of the 16 38 state to the department of revenue and finance an 16 39 amount sufficient to carry out the provisions of this 16 40 subsection. The treasurer shall credit any moneys 16 41 received from the department against the amount of the 16 42 unpaid special assessment due and payable on the 16 43 homestead of the claimant. 16 44 Sec. 31. Section 425.39, subsection 2, Code 1995, 16 45 is amended by striking the subsection. 16 46 Sec. 32. Section 426.1, Code 1995, is amended to 16 47 read as follows: 16 48 426.1AGRICULTURAL LANDFARM TAX CREDIT FUND. 16 49 There is created as a permanent fund in the office 16 50 of the treasurer of state a fund to be known as the 17 1agricultural landfarm tax credit fund, and for the 17 2 purpose of establishing and maintaining this fund for 17 3 each fiscal year there is appropriatedtheretofrom 17 4 funds in the general fund of the state not otherwise 17 5 appropriated the sum ofthirty-nineforty-nine million 17 6onethree hundred thousand dollarsof which the first17 7ten million dollars shall be transferred to and17 8deposited into the family farm tax credit fund created17 9in section 425A.1. Any balance insaidthe fund on 17 10 June 30 shall revert to the general fund of the state. 17 11 Sec. 33. Section 426.3, Code 1995, is amended to 17 12 read as follows: 17 13 426.3WHEREAMOUNT OF CREDIT GIVEN. 17 14 Theagricultural landfarm tax credit fund shall be 17 15 apportioned each year in the mannerhereinafter17 16 provided so as to give a credit against the tax on 17 17 each tract of agricultural lands withinthe several17 18school districts of the state in which the levy for17 19the general school fund exceeds five dollars and forty17 20cents per thousand dollars of assessed value; the17 21amount of such credit on each tract of such lands17 22shall be the amount the tax levied for the general17 23school fund exceeds the amount of tax which would be17 24levied on said tract of such lands were the levy for17 25the general school fund five dollars and forty cents17 26per thousand dollars of assessed value for the17 27previous year,each county equal to one dollar and 17 28 fifty cents per acre of agricultural land, except in 17 29 the case of a deficiency in theagricultural land17 30creditsfarm tax credit fund to paysaidthe credits 17 31 in full, in which case the credit on each eligible 17 32 tract of such lands in the state shall be 17 33 proportionate and shall be applied ashereinafter17 34 provided. 17 35 Sec. 34. Section 426.6, Code 1995, is amended to 17 36 read as follows: 17 37 426.6 COMPUTATION BY AUDITOR &endash; APPEAL. 17 38 Theagricultural landfarm tax credit allowed each 17 39 year shall be computed as follows: On or beforethe17 40first of JuneMarch 15 the county auditor shall list 17 41by school districtsall tracts of agricultural lands 17 42 which they are entitled to credit,together with the17 43taxable value for the previous year, together with the17 44budget from each school district for the previous17 45year, and the tax rate determined for the general fund17 46of the district in the manner prescribed in section17 47444.3 for the previous year, and if such tax rate is17 48in excess of five dollars and forty cents per thousand17 49dollars of assessed value, the auditor shall multiply17 50the tax levy which is in excess of five dollars and18 1forty cents per thousand dollars of assessed value by18 2the total taxable value of the agricultural lands18 3entitled to credit in the district, and on or before18 4the first of Juneand shall certify the amount of 18 5 credit to the department of revenue and finance. 18 6 In the event the county auditor denies a credit 18 7 upon anysuchlands, the auditor shall immediately 18 8 mail to the owner at the owner's last known address 18 9 notice of the decisionthereon. The owner may, within 18 10 thirty daysthereafter, appeal to the board of 18 11 supervisors of the county wherein the land involved is 18 12 situated by serving notice ofsaidappeal upon the 18 13 chairperson ofsaidthe board. The board shall hear 18 14suchthe appeal promptly and shall determine anew all 18 15 questions involved insaidthe appeal and shall within 18 16 ten days aftersuchthe hearing, mail to the owner at 18 17 the owner's last known address, notice of its 18 18 decision. In the event of disallowance the owner may, 18 19 within ten days from the datesuchthe notice is 18 20 mailed, appealsuchthe disallowance by the board of 18 21 supervisors to the district court of that county by 18 22 serving written notice of appeal on the county 18 23 auditor. The appeal shall be tried de novo and may be 18 24 heard in term time or vacation. The decision of the 18 25 district courtthereonshall be final. 18 26 Sec. 35. Section 426.7, Code 1995, is amended to 18 27 read as follows: 18 28 426.7 WARRANTS DRAWN BY DIRECTOR. 18 29 After receiving from the county auditors the 18 30 certifications provided for in section 426.6, and 18 31 during the following fiscal year, the director of 18 32 revenue and finance shall draw warrants on the 18 33 agricultural landcreditscredit fund created in 18 34 section 426.1, payable to the county treasurers in the 18 35 amount certified by the county auditors of the 18 36 respective counties and mail the warrants to the 18 37 county auditors on August 15 of each year taking into 18 38 consideration the relative budget and cash position of 18 39 the state resources. However, if the agricultural 18 40 landcreditscredit fund is insufficient to pay in 18 41 full the total of the amounts certified to the 18 42 director of revenue and finance, the director shall 18 43 prorate the fund to the county treasurers and notify 18 44 the county auditors of the pro rata percentage on or 18 45 beforeAugustJune 1. 18 46 Sec. 36. Section 441.21, subsection 1, Code 1995, 18 47 is amended by adding the following new paragraph: 18 48 NEW PARAGRAPH. h. Notwithstanding any other 18 49 provision of this section, beginning with valuations 18 50 established as of January 1, 1996, in computing actual 19 1 value of agricultural structures, other than 19 2 agricultural dwellings, the assessor shall exclude the 19 3 first two hundred thousand dollars in total actual 19 4 value of all such structures on each parcel of land. 19 5 The excluded valuation of such structures shall not be 19 6 removed from the productivity formula in establishing 19 7 agricultural values. 19 8 Sec. 37. Section 425.40, Code 1995, is repealed. 19 9 Sec. 38. Chapter 425A, Code 1995, is repealed. 19 10 Sec. 39. EFFECTIVE DATES. 19 11 1. Sections 23, 24, 25, 26, 27, 28, 29, 30, 31, 19 12 and 37 of this Act, being deemed of immediate 19 13 importance, take effect upon enactment for purposes of 19 14 property tax credits payable on or after July 1, 1995. 19 15 2. Sections 32, 33, 34, 35, and 38 of this Act 19 16 take effect January 1, 1996, for property taxes 19 17 payable on or after July 1, 1996. 19 18 3. Section 36 of this Act takes effect January 1, 19 19 1996, for computing valuations for taxes payable on or 19 20 after July 1, 1997. 19 21 DIVISION V 19 22 MENTAL HEALTH PROPERTY TAX RELIEF &endash; LIMITATION 19 23 Sec. 40. Section 123.38, unnumbered paragraph 2, 19 24 Code 1995, is amended to read as follows: 19 25 Any licensee or permittee, or the licensee's or 19 26 permittee's executor or administrator, or any person 19 27 duly appointed by the court to take charge of and 19 28 administer the property or assets of the licensee or 19 29 permittee for the benefit of the licensee's or 19 30 permittee's creditors, may voluntarily surrender a 19 31 license or permit to the division. When a license or 19 32 permit is surrendered the division shall notify the 19 33 local authority, and the division or the local 19 34 authority shall refund to the person surrendering the 19 35 license or permit, a proportionate amount of the fee 19 36 received by the division or the local authority for 19 37 the license or permit as follows: If a license or 19 38 permit is surrendered during the first three months of 19 39 the period for which it was issued, the refund shall 19 40 be three-fourths of the amount of the fee; if 19 41 surrendered more than three months but not more than 19 42 six months after issuance, the refund shall be one- 19 43 half of the amount of the fee; if surrendered more 19 44 than six months but not more than nine months after 19 45 issuance, the refund shall be one-fourth of the amount 19 46 of the fee. No refund shall be made, however, for any 19 47 special liquor permit, nor for a liquor control 19 48 license, wine permit, or beer permit surrendered more 19 49 than nine months after issuance. For purposes of this 19 50 paragraph, any portion of license or permit fees used 20 1 for the purposes authorized in section 331.424, 20 2 subsection 1, paragraphs "a",and "b", "c", "d", "e",20 3"f", "g", and "h", and in section 331.438A, shall not 20 4 be deemed received either by the division or by a 20 5 local authority. No refund shall be made to any 20 6 licensee or permittee, upon the surrender of the 20 7 license or permit, if there is at the time of 20 8 surrender, a complaint filed with the division or 20 9 local authority, charging the licensee or permittee 20 10 with a violation of this chapter. If upon a hearing 20 11 on a complaint the license or permit is not revoked or 20 12 suspended, then the licensee or permittee is eligible, 20 13 upon surrender of the license or permit, to receive a 20 14 refund as provided in this section; but if the license 20 15 or permit is revoked or suspended upon hearing the 20 16 licensee or permittee is not eligible for the refund 20 17 of any portion of the license or permit fee. 20 18 Sec. 41. Section 218.99, Code 1995, is amended to 20 19 read as follows: 20 20 218.99 COUNTY AUDITORS TO BE NOTIFIED OF PATIENTS' 20 21 PERSONAL ACCOUNTS. 20 22 The administrator of a division of the department 20 23 of human services in control of a state institution 20 24 shall direct the business manager of each institution 20 25 under the administrator's jurisdiction which is 20 26 mentioned in section 331.424, subsection 1, paragraphs 20 27 "a"through "g"and "b" and for which services are 20 28 paid under section 331.438A to quarterly inform the 20 29 auditor of the county of legal settlement of any 20 30 patient or resident who has an amount in excess of two 20 31 hundred dollars on account in the patients' personal 20 32 deposit fund and the amount on deposit. The 20 33 administrators shall direct the business manager to 20 34 further notify the auditor of the county at least 20 35 fifteen days before the release of funds in excess of 20 36 two hundred dollars or upon the death of the patient 20 37 or resident. If the patient or resident has no county 20 38 of legal settlement, notice shall be made to the 20 39 director of the department of human services and the 20 40 administrator of the division of the department in 20 41 control of the institution involved. 20 42 Sec. 42. Section 225C.4, subsection 2, paragraph 20 43 b, Code 1995, is amended to read as follows: 20 44 b. Establish mental health and mental retardation 20 45 services for all institutions under the control of the 20 46 director of human services and establish an autism 20 47 unit, following mutual planning with and consultation 20 48 from the medical director of the state psychiatric 20 49 hospital, at an institution or a facility administered 20 50 by the administrator to provide psychiatric and 21 1 related services and other specific programs to meet 21 2 the needs of autistic personsas defined in section21 3331.424, subsection 1, and to furnish appropriate 21 4 diagnostic evaluation services. 21 5 Sec. 43. Section 331.301, subsection 12, Code 21 6 1995, is amended to read as follows: 21 7 12. The board of supervisors may credit funds to a 21 8 reserve for the purposes authorized by subsection 11 21 9 of this section; section 331.424, subsection 1, 21 10 paragraph"l""f"; and section 331.441, subsection 2, 21 11 paragraph "b". Moneys credited to the reserve, and 21 12 interest earned on such moneys, shall remain in the 21 13 reserve until expended for purposes authorized by 21 14 subsection 11 of this section; section 331.424, 21 15 subsection 1, paragraph"l""f"; or section 331.441, 21 16 subsection 2, paragraph "b". 21 17 Sec. 44. Section 331.424, subsection 1, Code 1995, 21 18 is amended to read as follows: 21 19 1. For general county services, an amount 21 20 sufficient to pay the charges for the following: 21 21 a. To the extent that the county is obligated by 21 22 statute to pay the charges for: 21 23(1) Care and treatment of patients by a state21 24mental health institute.21 25(2) Care and treatment of patients by either of21 26the state hospital-schools or by any other facility21 27established under chapter 222 and diagnostic21 28evaluation under section 222.31.21 29(3) Care and treatment of patients under chapter21 30225.21 31(4)(1) Care and treatment of persons at the 21 32 alcoholic treatment center at Oakdale. However, the 21 33 county may require that an admission to the center 21 34 shall be reported to the board by the center within 21 35 five days as a condition of the payment of county 21 36 funds for that admission. 21 37(5)(2) Care of children admitted or committed to 21 38 the Iowa juvenile home at Toledo. 21 39(6)(3) Clothing, transportation, medical, or 21 40 other services provided persons attending the Iowa 21 41 braille and sight saving school, the Iowa school for 21 42 the deaf, or the state hospital-school for severely 21 43 handicapped children at Iowa City, for which the 21 44 county becomes obligated to pay pursuant to sections 21 45 263.12, 269.2, and 270.4 through 270.7. 21 46b. To the extent that the board deems it advisable21 47to pay, the charges for professional evaluation,21 48treatment, training, habilitation, and care of persons21 49who are mentally retarded, autistic persons, or21 50persons who are afflicted by any other developmental22 1disability, at a suitable public or private facility22 2providing inpatient or outpatient care in the county.22 3As used in this paragraph:22 4(1) "Developmental disability" has the meaning22 5assigned that term by 42 U.S.C. sec. 6001(7) (1976),22 6Supp. II, 1978, and Supp. III, 1979.22 7(2) "Autistic persons" means persons, regardless22 8of age, with severe communication and behavior22 9disorders that became manifest during the early stages22 10of childhood development and that are characterized by22 11a severely disabling inability to understand,22 12communicate, learn, and participate in social22 13relationships. "Autistic persons" includes but is not22 14limited to those persons afflicted by infantile22 15autism, profound aphasia, and childhood psychosis.22 16c. Care and treatment of persons placed in the22 17county hospital, county care facility, a health care22 18facility as defined in section 135C.1, subsection 6,22 19or any other public or private facility, which22 20placement is in lieu of admission or commitment to or22 21is upon discharge, removal, or transfer from a state22 22mental health institute, hospital-school, or other22 23facility established pursuant to chapter 222.22 24d. Amounts budgeted by the board for the cost of22 25establishment and initial operation of a community22 26mental health center in the manner and subject to the22 27limitations provided by state law.22 28e.b. Foster care and related services provided 22 29 under court order to a child who is under the 22 30 jurisdiction of the juvenile court, including court- 22 31 ordered costs for a guardian ad litem under section 22 32 232.71. 22 33f. The care, admission, commitment, and22 34transportation of mentally ill patients in state22 35hospitals, to the extent that expenses for these22 36services are required to be paid by the county,22 37including compensation for the advocate appointed22 38under section 229.19.22 39g. Amounts budgeted by the board for mental health22 40services or mental retardation services furnished to22 41persons on either an outpatient or inpatient basis, to22 42a school or other public agency, or to the community22 43at large, by a community mental health center or other22 44suitable facility located in or reasonably near the22 45county, provided that services meet the standards of22 46the mental health and developmental disabilities22 47commission created in section 225C.5 and are22 48consistent with the annual plan for services approved22 49by the board.22 50h. Reimbursement on behalf of mentally retarded23 1persons under section 249A.12.23 2i.c. Elections, and voter registration pursuant 23 3 to chapter 48A. 23 4j.d. Employee benefits under chapters 96, 97B, 23 5 and 97C, which are associated with salaries for 23 6 general county services. 23 7k.e. Joint county and city building authorities 23 8 established under section 346.27, as provided in 23 9 subsection 22 of that section. 23 10l.f. Tort liability insurance, property 23 11 insurance, and any other insurance that may be 23 12 necessary in the operation of the county, costs of a 23 13 self-insurance program, costs of a local government 23 14 risk pool, and amounts payable under any insurance 23 15 agreements to provide or procure such insurance, self- 23 16 insurance program, or local government risk pool. 23 17m.g. The maintenance and operation of the courts, 23 18 including but not limited to the salary and expenses 23 19 of the clerk of the district court and other employees 23 20 of the clerk's office, and bailiffs, court costs if 23 21 the prosecution fails or if the costs cannot be 23 22 collected from the person liable, costs and expenses 23 23 of prosecution under section 189A.17, salaries and 23 24 expenses of juvenile court officers under chapter 602, 23 25 court-ordered costs in domestic abuse cases under 23 26 section 236.5, the county's expense for confinement of 23 27 prisoners under chapter 356A, temporary assistance to 23 28 the county attorney, county contributions to a 23 29 retirement system for bailiffs, reimbursement for 23 30 judicial magistrates under section 602.6501, claims 23 31 filed under section 622.93, interpreters' fees under 23 32 section 622B.7, uniform citation and complaint 23 33 supplies under section 805.6, and costs of prosecution 23 34 under section 815.13. 23 35n.h. Court-ordered costs of conciliation 23 36 procedures under section 598.16. 23 37o.i. Establishment and maintenance of a joint 23 38 county indigent defense fund pursuant to an agreement 23 39 under section 28E.19. 23 40p.j. The maintenance and operation of a local 23 41 emergency management agency established pursuant to 23 42 chapter 29C. 23 43 The board may require a public or private facility, 23 44 as a condition of receiving payment from county funds 23 45 for services it has provided, to furnish the board 23 46 with a statement of the income, assets, and legal 23 47 residence including township and county of each person 23 48 who has received services from that facility for which 23 49 payment has been made from county funds under 23 50 paragraphs "a"through "h"and "b". However, the 24 1 facility shall not disclose to anyone the name or 24 2 street or route address of a person receiving services 24 3 for which commitment is not required, without first 24 4 obtaining that person's written permission. 24 5 Parents or other persons may voluntarily reimburse 24 6 the county or state for the reasonable cost of caring 24 7 for a patient or an inmate in a county or state 24 8 facility. 24 9 Sec. 45. Section 331.424, Code 1995, is amended by 24 10 adding the following new subsection: 24 11 NEW SUBSECTION. 1A. The maximum amount of 24 12 property tax dollars which may be certified by a 24 13 county for taxes levied under subsection 1 and payable 24 14 in the fiscal year beginning July 1, 1995, and 24 15 succeeding fiscal years shall not exceed the amount of 24 16 property tax dollars certified by the county for taxes 24 17 payable in the fiscal year beginning July 1, 1994, 24 18 minus an adjustment for the amounts levied by the 24 19 county under subsection 1 for mental health, mental 24 20 retardation, and developmental disabilities in the 24 21 fiscal year beginning July 1, 1995. The adjustment 24 22 and maximum amount which may be levied by the county 24 23 shall be determined for the county by the department 24 24 of management. 24 25 Sec. 46. Section 331.426, subsection 1, Code 1995, 24 26 is amended by adding the following new paragraph: 24 27 NEW PARAGRAPH. h. An unusual need for a service 24 28 or cost paid from levies under section 331.424, 24 29 subsection 1, which would cause the total expenditures 24 30 of services and costs paid from those levies to exceed 24 31 the maximum levies authorized under section 331.424, 24 32 subsection 1A. 24 33 Sec. 47. Section 331.438, subsection 1, paragraph 24 34 b, Code 1995, is amended to read as follows: 24 35 b. "State payment" means the payment made by the 24 36 state under section 331.438A to a county determined to 24 37 be eligible for the payment in accordance with section 24 38 331.439.Except as modified based upon the actual24 39amount of the appropriation for purposes of state24 40payment under section 331.439, the amount of the state24 41payment for a fiscal year shall be calculated as fifty24 42percent of the amount by which the county's qualified24 43expenditures during the immediately preceding fiscal24 44year were in excess of the amount of the county's base24 45year expenditures.24 46 Sec. 48. Section 331.438, Code 1995, is amended by 24 47 adding the following new subsection: 24 48 NEW SUBSECTION. 1A. The state of Iowa shall 24 49 provide funding for the county expenditures for mental 24 50 health and mental retardation assistance so that over 25 1 the five-year period beginning July 1, 1995, and 25 2 ending June 30, 2000, the relative shares of the state 25 3 and counties for these expenditures shall become 25 4 either equal or greater for the state. 25 5 Sec. 49. NEW SECTION. 331.438A STATE AND COUNTY 25 6 EXPENDITURES FOR MENTAL HEALTH, MENTAL RETARDATION, 25 7 AND DEVELOPMENTAL DISABILITIES ASSISTANCE &endash; FUND 25 8 CREATED. 25 9 1. The mental health, mental retardation, and 25 10 developmental disabilities property tax relief fund is 25 11 created in the office of the treasurer of state under 25 12 the authority of the department of revenue and 25 13 finance. The relief fund shall consist of moneys 25 14 appropriated to the fund. 25 15 2. The department of management shall determine 25 16 each county's proportion of all counties' base year 25 17 expenditures, as defined in section 331.438. In each 25 18 fiscal year, a county shall receive for property tax 25 19 relief the proportion of the moneys appropriated to 25 20 the relief fund for that fiscal year equivalent to the 25 21 county's proportion of all counties' base year 25 22 expenditures. However, moneys provided to a county 25 23 for property tax relief in a fiscal year in accordance 25 24 with this section shall not be less than the amount 25 25 provided to the county for property tax relief in the 25 26 previous fiscal year. 25 27 3. The department of management shall notify the 25 28 department of revenue and finance of the amount due 25 29 each county and the director of revenue and finance 25 30 shall draw warrants on the relief fund, payable to the 25 31 county treasurer in the amount due a county in 25 32 accordance with subsection 2, and mail the warrants to 25 33 county auditors by September 1 and March 1. 25 34 4. Before June 1, 1995, the director of human 25 35 services shall notify the county auditor of each 25 36 county of the amount of moneys the county will receive 25 37 from the relief fund pursuant to subsection 2 in the 25 38 succeeding fiscal year. For the fiscal year beginning 25 39 July 1, 1995, the department of management shall 25 40 reduce the certified budget amount received from the 25 41 board of supervisors for that fiscal year by an amount 25 42 equal to the amount the county will receive and the 25 43 department of management shall determine the rate of 25 44 taxation necessary to raise the reduced amount. For 25 45 subsequent fiscal years, the county auditor shall 25 46 reduce the county's property tax requests in the 25 47 manner specified in section 444.25A. 25 48 5. In addition to moneys received by a county 25 49 pursuant to subsection 2, the county shall be allowed 25 50 an inflation factor adjustment for assistance paid 26 1 from the county's services fund under section 331.424A 26 2 which is in accordance with the county's management 26 3 plan implemented pursuant to section 331.439. The 26 4 inflation factor adjustment shall address costs 26 5 associated with new consumers of assistance, service 26 6 cost inflation, and investments for economy and 26 7 efficiency. The amount of the inflation factor 26 8 adjustment shall not exceed the inflation factor 26 9 amount specified in the appropriation for the 26 10 adjustment. Payment of the inflation factor 26 11 adjustment shall be made as provided in the 26 12 appropriation. 26 13 6. The director of revenue and finance shall 26 14 prescribe forms and adopt rules pursuant to chapter 26 15 17A to administer this section. 26 16 Sec. 50. Section 331.439, Code 1995, is amended by 26 17 striking the section and inserting in lieu thereof the 26 18 following: 26 19 331.439 ELIGIBILITY FOR STATE PAYMENT. 26 20 1. The state payment to eligible counties under 26 21 this section shall be made as provided in section 26 22 331.438A. A county is eligible for the state payment, 26 23 as defined in section 331.438, for the fiscal year 26 24 beginning July 1, 1995, and for subsequent fiscal 26 25 years if the director of human services determines for 26 26 a specific fiscal year that all of the following 26 27 conditions are met: 26 28 a. The county accurately reported by October 15 26 29 the county's expenditures for mental health, mental 26 30 retardation, and developmental disabilities services 26 31 for the previous fiscal year on forms prescribed by 26 32 the department of human services. 26 33 b. The county developed and implemented a county 26 34 management plan for the county's mental health and 26 35 mental retardation services in accordance with the 26 36 provisions of this paragraph. The plan shall comply 26 37 with the administrative rules adopted for this purpose 26 38 by the council on human services and is subject to the 26 39 approval of the director of human services in 26 40 consultation with the state-county management 26 41 committee created in section 331.438. The plan shall 26 42 include a description of the county's service 26 43 management provision for mental health, mental 26 44 retardation, and developmental disabilities services. 26 45 The plan shall have the following two parts: 26 46 (1) For mental health service management, the 26 47 county must contract with a state-approved managed 26 48 mental health care contractor or provide a comparable 26 49 system of managed care. For the fiscal year beginning 26 50 July 1, 1995, this part of the plan shall be 27 1 implemented on or before October 15, 1995, after 27 2 approval by the department of human services. For 27 3 subsequent fiscal years, this part of the plan shall 27 4 be submitted to the department by April 1 for the 27 5 succeeding fiscal year. 27 6 (2) For mental retardation service management, the 27 7 county shall implement a system of managed care within 27 8 six months of the date by which the department of 27 9 human services approves a managed care contractor. 27 10 The county must either contract with a state-approved 27 11 mental retardation managed contractor or provide a 27 12 comparable system of managed care. In fiscal years 27 13 succeeding the fiscal year of initial implementation, 27 14 this part of the plan shall be submitted to the 27 15 department of human services by April 1 for the 27 16 succeeding fiscal year. 27 17 c. Changes to the approved plan are submitted 27 18 sixty days prior to the proposed change and are not to 27 19 be implemented prior to the director of human 27 20 services' approval. 27 21 2. A county may provide assistance to service 27 22 populations with disabilities to which the county has 27 23 historically provided assistance but who are not 27 24 included in the service management provisions required 27 25 under subsection 1, subject to the availability of 27 26 funding. 27 27 3. For the fiscal year beginning July 1, 1995, and 27 28 succeeding fiscal years, implementation of the county 27 29 management plan is subject to a fixed budget 27 30 consisting of the moneys deposited by the state and 27 31 county in the county mental health, mental 27 32 retardation, and developmental disabilities services 27 33 fund created in section 331.424A. 27 34 4. A county's implementation of the service 27 35 management provisions required under subsection 1 for 27 36 mental health and mental retardation shall incorporate 27 37 the single entry point process described in section 27 38 331.440. 27 39 5. The basis for determining whether a managed 27 40 care system proposed by a county is comparable to a 27 41 managed care contractor approved by the department of 27 42 human services shall include but is not limited to all 27 43 of the following elements: 27 44 a. The enrollment and eligibility process. 27 45 b. The scope of services included. 27 46 c. The method of plan administration. 27 47 d. The process for managing utilization and access 27 48 to services and other assistance. 27 49 e. The quality assurance process. 27 50 f. The risk management provisions and fiscal 28 1 viability of the provisions. 28 2 6. The director's approval of a county's mental 28 3 health, mental retardation, and developmental 28 4 disabilities services management plan shall not be 28 5 construed to constitute certification of the county's 28 6 budget. 28 7 Sec. 51. NEW SECTION. 331.424A MENTAL HEALTH, 28 8 MENTAL RETARDATION, AND DEVELOPMENTAL DISABILITIES 28 9 SERVICES FUND. 28 10 1. For the purposes of this chapter, unless the 28 11 context otherwise requires, "services fund" means the 28 12 county mental health, mental retardation, and 28 13 developmental disabilities services fund created in 28 14 subsection 2. 28 15 2. For the fiscal year beginning July 1, 1995, and 28 16 succeeding fiscal years, county revenues from taxes 28 17 and other sources designated for mental health, mental 28 18 retardation, and developmental disabilities services 28 19 shall be credited to the mental health, mental 28 20 retardation, and developmental disabilities services 28 21 fund of the county. The board shall make 28 22 appropriations from the fund for payment of services 28 23 provided under the county management plan approved 28 24 pursuant to section 331.439. 28 25 3. For the fiscal year beginning July 1, 1995, and 28 26 succeeding fiscal years, receipts from the state or 28 27 federal government for such services shall be credited 28 28 to the services fund, including moneys allotted to the 28 29 county from the state payment made pursuant to section 28 30 331.439 and moneys allotted to the county for property 28 31 tax relief pursuant to section 331.438A. 28 32 4. For the fiscal year beginning July 1, 1995, and 28 33 for each subsequent fiscal year, the county may 28 34 certify a levy for payment of services. Unless 28 35 otherwise provided by state law, for each fiscal year, 28 36 county revenues from taxes imposed by the county 28 37 credited to the services fund shall not exceed an 28 38 amount equal to the amount of base year expenditures 28 39 from property taxes imposed by the county and paid for 28 40 services in the fiscal year beginning July 1, 1993, 28 41 and ending June 30, 1994, as defined in section 28 42 331.438, less the amount of property tax relief to be 28 43 received pursuant to section 331.438A in the fiscal 28 44 year for which the budget is certified. 28 45 5. Appropriations specifically authorized to be 28 46 made from the mental health, mental retardation, and 28 47 disabilities services fund shall not be made from the 28 48 general fund of the county. 28 49 Sec. 52. Section 444.25A, subsection 1, Code 1995, 28 50 is amended to read as follows: 29 1 1. COUNTY LIMITATION. The maximum amount of 29 2 property tax dollars which may be certified by a 29 3 county for taxes payable in the fiscal year beginning 29 4 July 1, 1995, shall not exceed the amount of property 29 5 tax dollars certified by the county for taxes payable 29 6 in the fiscal year beginning July 1, 1994, minus the 29 7 amount of the property tax relief payment to be 29 8 received by the county for the fiscal year beginning 29 9 July 1, 1995, pursuant to section 331.438A, subsection 29 10 2, and the maximum amount of property tax dollars 29 11 which may be certified by a county for taxes payable 29 12 in the fiscal year beginning July 1, 1996, shall not 29 13 exceed the amount of property tax dollars certified by 29 14 the county for taxes payable in the fiscal year 29 15 beginning July 1, 1995, minus the difference between 29 16 the amount of the property tax relief payment received 29 17 by the county in the fiscal year beginning July 1, 29 18 1995, and the amount of the property tax relief 29 19 payment to be received by the county in the fiscal 29 20 year beginning July 1, 1996, pursuant to section 29 21 331.438A, subsection 2, for each of the levies for the 29 22 following, except for the levies on the increase in 29 23 taxable valuation due to new construction, additions 29 24 or improvements to existing structures, remodeling of 29 25 existing structures for which a building permit is 29 26 required, annexation, and phasing out of tax 29 27 exemptions, and on the increase in valuation of 29 28 taxable property as a result of a comprehensive 29 29 revaluation by a private appraiser under a contract 29 30 entered into prior to January 1, 1992, or as a result 29 31 of a comprehensive revaluation directed or authorized 29 32 by the conference board prior to January 1, 1992, with 29 33 documentation of the contract, authorization, or 29 34 directive on the revaluation provided to the director 29 35 of revenue and finance, if the levies are equal to or 29 36 less than the levies for the previous year, levies on 29 37 that portion of the taxable property located in an 29 38 urban renewal project the tax revenues from which are 29 39 no longer divided as provided in section 403.19, 29 40 subsection 2, or as otherwise provided in this 29 41 section: 29 42 a. General county services under section 331.422, 29 43 subsection 1. 29 44 b. Rural county services under section 331.422, 29 45 subsection 2. 29 46 c. Other taxes under section 331.422, subsection 29 47 4. 29 48 Sec. 53. Section 444.25A, subsection 3, paragraph 29 49 b, subparagraph (3), Code 1995, is amended to read as 29 50 follows: 30 1 (3) Need for additional moneys for health care, 30 2 treatment, and facilities, includingmental health and30 3mental retardation care andtreatment pursuant to 30 4 section 331.424, subsection 1, paragraphs "a"through30 5"h"and "b". 30 6 Sec. 54. NEW SECTION. 444.25B PROPERTY TAX 30 7 LIMITATIONS FOR 1998 AND 1999 FISCAL YEARS. 30 8 1. COUNTY LIMITATION. The maximum amount of 30 9 property tax dollars which may be certified by a 30 10 county for taxes payable in the fiscal year beginning 30 11 July 1, 1996, shall not exceed the amount of property 30 12 tax dollars certified by the county for taxes payable 30 13 in the fiscal year beginning July 1, 1996, minus the 30 14 difference between the amount of the property tax 30 15 relief payment received by the county in the fiscal 30 16 year beginning July 1, 1996, and the amount of the 30 17 property tax relief payment to be received by the 30 18 county in the fiscal year beginning July 1, 1997, 30 19 pursuant to section 331.438A, subsection 2, and the 30 20 maximum amount of property tax dollars which may be 30 21 certified by a county for taxes payable in the fiscal 30 22 year beginning July 1, 1998, shall not exceed the 30 23 amount of property tax dollars certified by the county 30 24 for taxes payable in the fiscal year beginning July 1, 30 25 1997, minus the difference between the amount of the 30 26 property tax relief payment received by the county in 30 27 the fiscal year beginning July 1, 1997, and the amount 30 28 of the property tax relief payment to be received by 30 29 the county in the fiscal year beginning July 1, 1998, 30 30 pursuant to section 331.438A, subsection 2, for each 30 31 of the levies for the following, except for the levies 30 32 on the increase in taxable valuation due to new 30 33 construction, additions or improvements to existing 30 34 structures, remodeling of existing structures for 30 35 which a building permit is required, annexation, and 30 36 phasing out of tax exemptions, and on the increase in 30 37 valuation of taxable property as a result of a 30 38 comprehensive revaluation by a private appraiser under 30 39 a contract entered into prior to January 1, 1992, or 30 40 as a result of a comprehensive revaluation directed or 30 41 authorized by the conference board prior to January 1, 30 42 1992, with documentation of the contract, 30 43 authorization, or directive on the revaluation 30 44 provided to the director of revenue and finance, if 30 45 the levies are equal to or less than the levies for 30 46 the previous year, levies on that portion of the 30 47 taxable property located in an urban renewal project 30 48 the tax revenues from which are no longer divided as 30 49 provided in section 403.19, subsection 2, or as 30 50 otherwise provided in this section: 31 1 a. General county services under section 331.422, 31 2 subsection 1. 31 3 b. Rural county services under section 331.422, 31 4 subsection 2. 31 5 c. Other taxes under section 331.422, subsection 31 6 4. 31 7 2. EXCEPTIONS. The limitations provided in 31 8 subsection 1 do not apply to the levies made for the 31 9 following: 31 10 a. Debt service to be deposited into the debt 31 11 service fund pursuant to section 331.430. 31 12 b. Taxes approved by a vote of the people which 31 13 are payable during the fiscal year beginning July 1, 31 14 1997, or July 1, 1998. 31 15 c. Hospitals pursuant to chapters 37, 347, and 31 16 347A. 31 17 d. Emergency management to be deposited into the 31 18 local emergency management fund and expended for 31 19 development of hazardous substance teams pursuant to 31 20 chapter 29C. 31 21 e. Unusual need for additional moneys to finance 31 22 existing programs which would provide substantial 31 23 benefit to county residents or compelling need to 31 24 finance new programs which would provide substantial 31 25 benefit to county residents. The increase in taxes 31 26 levied under this exception for the fiscal year 31 27 beginning July 1, 1997, is limited to no more than the 31 28 product of the total tax dollars levied in the fiscal 31 29 year beginning July 1, 1996, and the percent change, 31 30 computed to two decimal places, in the price index for 31 31 government purchases by type for state and local 31 32 governments computed for the third quarter of calendar 31 33 year 1996 from that computed for the third quarter of 31 34 calendar year 1995. The increase in taxes levied 31 35 under this exception for the fiscal year beginning 31 36 July 1, 1998, is limited to no more than the product 31 37 of the total tax dollars levied in the fiscal year 31 38 beginning July 1, 1997, and the percent change, 31 39 computed to two decimal places, in the price index for 31 40 government purchases by type for state and local 31 41 governments computed for the third quarter of calendar 31 42 year 1997 from that computed for the third quarter of 31 43 calendar year 1996. 31 44 For purposes of this paragraph, the price index for 31 45 government purchases by type for state and local 31 46 governments is defined by the bureau of economic 31 47 analysis of the United States department of commerce 31 48 and published in table 7.11 of the national income and 31 49 products accounts. For the fiscal years beginning 31 50 July 1, 1997, and July 1, 1998, the price index used 32 1 shall be the revision published in the November 1996 32 2 and November 1997 issues, respectively, of the United 32 3 States department of commerce publication, "survey of 32 4 current business". For purposes of this paragraph, 32 5 tax dollars levied in the fiscal years beginning July 32 6 1, 1996, and July 1, 1997, shall not include funds 32 7 levied for paragraphs "a", "b", and "c" of this 32 8 subsection. 32 9 Application of this exception shall require an 32 10 original publication of the budget and a public 32 11 hearing and a second publication and a second hearing 32 12 both in the manner and form prescribed by the director 32 13 of the department of management, notwithstanding the 32 14 provisions of section 331.434. The publications and 32 15 hearings prescribed in this paragraph shall be held 32 16 and the budget certified no later than March 15. The 32 17 taxes levied for counties whose budgets are certified 32 18 after March 15, 1997, shall be frozen at the fiscal 32 19 year beginning July 1, 1996, level, and the taxes 32 20 levied for counties whose budgets are certified after 32 21 March 15, 1998, shall be frozen at the fiscal year 32 22 beginning July 1, 1997, level. 32 23 3. APPEAL PROCEDURES. In lieu of the procedures 32 24 in sections 24.48 and 331.426, which procedures do not 32 25 apply for taxes payable in the fiscal years beginning 32 26 July 1, 1997, and July 1, 1998, if a county needs to 32 27 raise property tax dollars from a tax levy in excess 32 28 of the limitations imposed by subsection 1, the 32 29 following procedures apply: 32 30 a. Not later than March 1, and after the 32 31 publication and public hearing on the budget in the 32 32 manner and form prescribed by the director of the 32 33 department of management, notwithstanding section 32 34 331.434, the county shall petition the state appeal 32 35 board for approval of a property tax increase in 32 36 excess of the increase provided for in subsection 2, 32 37 paragraph "e", on forms furnished by the director of 32 38 the department of management. Applications received 32 39 after March 1 shall be automatically ineligible for 32 40 consideration by the board. 32 41 b. Additional costs incurred by the county due to 32 42 any of the following circumstances shall be the basis 32 43 for justifying the excess in property tax dollars: 32 44 (1) Natural disaster or other life-threatening 32 45 emergencies. 32 46 (2) Unusual need for additional moneys to finance 32 47 existing programs which would provide substantial 32 48 benefit to county residents or compelling need to 32 49 finance new programs which would provide substantial 32 50 benefit to county residents. 33 1 (3) Need for additional moneys for health care, 33 2 treatment, and facilities, including mental health and 33 3 mental retardation care and treatment pursuant to 33 4 section 331.424, subsection 1, paragraphs "a" and "b". 33 5 (4) Judgments, settlements, and related costs 33 6 arising out of civil claims against the county and its 33 7 officers, employees, and agents, as defined in chapter 33 8 670. 33 9 c. The state appeal board shall approve, 33 10 disapprove, or reduce the amount of excess property 33 11 tax dollars requested. The board shall take into 33 12 account the intent of this section to provide property 33 13 tax relief. The decision of the board shall be 33 14 rendered at a regular or special meeting of the board 33 15 within twenty days of the board's receipt of an 33 16 appeal. 33 17 d. Within seven days of receipt of the decision of 33 18 the state appeal board, the county shall adopt and 33 19 certify its budget under section 331.434, which budget 33 20 may be protested as provided in section 331.436. The 33 21 budget shall not contain an amount of property tax 33 22 dollars in excess of the amount approved by the state 33 23 appeal board. 33 24 4. Rate adjustment by county auditor. In addition 33 25 to the requirement of the county auditor in section 33 26 444.3 to establish a rate of tax which does not exceed 33 27 the rate authorized by law, the county auditor shall 33 28 also adjust the rate if the amount of property tax 33 29 dollars to be raised is in excess of the amount 33 30 specified in subsection 1, as may be adjusted pursuant 33 31 to subsection 3. 33 32 Sec. 55. NEW SECTION. 444.25C PROPERTY TAX 33 33 LIMITATIONS FOR 2000 AND 2001 FISCAL YEARS. 33 34 1. COUNTY LIMITATION. The maximum amount of 33 35 property tax dollars which may be certified by a 33 36 county for taxes payable in the fiscal year beginning 33 37 July 1, 1999, shall not exceed the amount of property 33 38 tax dollars certified by the county for taxes payable 33 39 in the fiscal year beginning July 1, 1998, minus the 33 40 difference between the amount of the property tax 33 41 relief payment received by the county in the fiscal 33 42 year beginning July 1, 1998, and the amount of the 33 43 property tax relief payment to be received by the 33 44 county in the fiscal year beginning July 1, 1999, 33 45 pursuant to section 331.438A, subsection 2, and the 33 46 maximum amount of property tax dollars which may be 33 47 certified by a county for taxes payable in the fiscal 33 48 year beginning July 1, 2000, shall not exceed the 33 49 amount of property tax dollars certified by the county 33 50 for taxes payable in the fiscal year beginning July 1, 34 1 1999, minus the difference between the amount of the 34 2 property tax relief payment received by the county in 34 3 the fiscal year beginning July 1, 1999, and the amount 34 4 of the property tax relief payment to be received by 34 5 the county in the fiscal year beginning July 1, 2000, 34 6 pursuant to section 331.438A, subsection 2, for each 34 7 of the levies for the following, except for the levies 34 8 on the increase in taxable valuation due to new 34 9 construction, additions or improvements to existing 34 10 structures, remodeling of existing structures for 34 11 which a building permit is required, annexation, and 34 12 phasing out of tax exemptions, and on the increase in 34 13 valuation of taxable property as a result of a 34 14 comprehensive revaluation by a private appraiser under 34 15 a contract entered into prior to January 1, 1992, or 34 16 as a result of a comprehensive revaluation directed or 34 17 authorized by the conference board prior to January 1, 34 18 1992, with documentation of the contract, 34 19 authorization, or directive on the revaluation 34 20 provided to the director of revenue and finance, if 34 21 the levies are equal to or less than the levies for 34 22 the previous year, levies on that portion of the 34 23 taxable property located in an urban renewal project 34 24 the tax revenues from which are no longer divided as 34 25 provided in section 403.19, subsection 2, or as 34 26 otherwise provided in this section: 34 27 a. General county services under section 331.422, 34 28 subsection 1. 34 29 b. Rural county services under section 331.422, 34 30 subsection 2. 34 31 c. Other taxes under section 331.422, subsection 34 32 4. 34 33 2. EXCEPTIONS. The limitations provided in 34 34 subsection 1 do not apply to the levies made for the 34 35 following: 34 36 a. Debt service to be deposited into the debt 34 37 service fund pursuant to section 331.430. 34 38 b. Taxes approved by a vote of the people which 34 39 are payable during the fiscal year beginning July 1, 34 40 1999, or July 1, 2000. 34 41 c. Hospitals pursuant to chapters 37, 347, and 34 42 347A. 34 43 d. Emergency management to be deposited into the 34 44 local emergency management fund and expended for 34 45 development of hazardous substance teams pursuant to 34 46 chapter 29C. 34 47 e. Unusual need for additional moneys to finance 34 48 existing programs which would provide substantial 34 49 benefit to county residents or compelling need to 34 50 finance new programs which would provide substantial 35 1 benefit to county residents. The increase in taxes 35 2 levied under this exception for the fiscal year 35 3 beginning July 1, 1999, is limited to no more than the 35 4 product of the total tax dollars levied in the fiscal 35 5 year beginning July 1, 1998, and the percent change, 35 6 computed to two decimal places, in the price index for 35 7 government purchases by type for state and local 35 8 governments computed for the third quarter of calendar 35 9 year 1998 from that computed for the third quarter of 35 10 calendar year 1997. The increase in taxes levied 35 11 under this exception for the fiscal year beginning 35 12 July 1, 2000, is limited to no more than the product 35 13 of the total tax dollars levied in the fiscal year 35 14 beginning July 1, 1999, and the percent change, 35 15 computed to two decimal places, in the price index for 35 16 government purchases by type for state and local 35 17 governments computed for the third quarter of calendar 35 18 year 1999 from that computed for the third quarter of 35 19 calendar year 1998. 35 20 For purposes of this paragraph, the price index for 35 21 government purchases by type for state and local 35 22 governments is defined by the bureau of economic 35 23 analysis of the United States department of commerce 35 24 and published in table 7.11 of the national income and 35 25 products accounts. For the fiscal years beginning 35 26 July 1, 1999, and July 1, 2000, the price index used 35 27 shall be the revision published in the November 1998 35 28 and November 1999 issues, respectively, of the United 35 29 States department of commerce publication, "survey of 35 30 current business". For purposes of this paragraph, 35 31 tax dollars levied in the fiscal years beginning July 35 32 1, 1998, and July 1, 1999, shall not include funds 35 33 levied for paragraphs "a", "b", and "c" of this 35 34 subsection. 35 35 Application of this exception shall require an 35 36 original publication of the budget and a public 35 37 hearing and a second publication and a second hearing 35 38 both in the manner and form prescribed by the director 35 39 of the department of management, notwithstanding the 35 40 provisions of section 331.434. The publications and 35 41 hearings prescribed in this paragraph shall be held 35 42 and the budget certified no later than March 15. The 35 43 taxes levied for counties whose budgets are certified 35 44 after March 15, 1999, shall be frozen at the fiscal 35 45 year beginning July 1, 1998, level, and the taxes 35 46 levied for counties whose budgets are certified after 35 47 March 15, 2000, shall be frozen at the fiscal year 35 48 beginning July 1, 1999, level. 35 49 3. APPEAL PROCEDURES. In lieu of the procedures 35 50 in sections 24.48 and 331.426, which procedures do not 36 1 apply for taxes payable in the fiscal years beginning 36 2 July 1, 1999, and July 1, 2000, if a county needs to 36 3 raise property tax dollars from a tax levy in excess 36 4 of the limitations imposed by subsection 1, the 36 5 following procedures apply: 36 6 a. Not later than March 1, and after the 36 7 publication and public hearing on the budget in the 36 8 manner and form prescribed by the director of the 36 9 department of management, notwithstanding section 36 10 331.434, the county shall petition the state appeal 36 11 board for approval of a property tax increase in 36 12 excess of the increase provided for in subsection 2, 36 13 paragraph "e", on forms furnished by the director of 36 14 the department of management. Applications received 36 15 after March 1 shall be automatically ineligible for 36 16 consideration by the board. 36 17 b. Additional costs incurred by the county due to 36 18 any of the following circumstances shall be the basis 36 19 for justifying the excess in property tax dollars: 36 20 (1) Natural disaster or other life-threatening 36 21 emergencies. 36 22 (2) Unusual need for additional moneys to finance 36 23 existing programs which would provide substantial 36 24 benefit to county residents or compelling need to 36 25 finance new programs which would provide substantial 36 26 benefit to county residents. 36 27 (3) Need for additional moneys for health care, 36 28 treatment, and facilities, including mental health and 36 29 mental retardation care and treatment pursuant to 36 30 section 331.424, subsection 1, paragraphs "a" and "b". 36 31 (4) Judgments, settlements, and related costs 36 32 arising out of civil claims against the county and its 36 33 officers, employees, and agents, as defined in chapter 36 34 670. 36 35 c. The state appeal board shall approve, 36 36 disapprove, or reduce the amount of excess property 36 37 tax dollars requested. The board shall take into 36 38 account the intent of this section to provide property 36 39 tax relief. The decision of the board shall be 36 40 rendered at a regular or special meeting of the board 36 41 within twenty days of the board's receipt of an 36 42 appeal. 36 43 d. Within seven days of receipt of the decision of 36 44 the state appeal board, the county shall adopt and 36 45 certify its budget under section 331.434, which budget 36 46 may be protested as provided in section 331.436. The 36 47 budget shall not contain an amount of property tax 36 48 dollars in excess of the amount approved by the state 36 49 appeal board. 36 50 4. Rate adjustment by county auditor. In addition 37 1 to the requirement of the county auditor in section 37 2 444.3 to establish a rate of tax which does not exceed 37 3 the rate authorized by law, the county auditor shall 37 4 also adjust the rate if the amount of property tax 37 5 dollars to be raised is in excess of the amount 37 6 specified in subsection 1, as may be adjusted pursuant 37 7 to subsection 3. 37 8 Sec. 56. Section 445.23, Code 1995, is amended to 37 9 read as follows: 37 10 445.23 STATEMENT OF TAXES DUE. 37 11 1.Upon request, theThe county treasurer shall 37 12 state in writing the full amount of taxes against a 37 13 parcel, all sales for unpaid taxes, and the amount 37 14 needed to redeem the parcel, if redeemable. If the 37 15 person requesting the statement is not the titleholder 37 16 of record or contract holder of record of the parcel, 37 17 that person shall pay a fee at the rate of two dollars 37 18 per parcel for each year for which information is 37 19 requested, and the money shall be deposited in the 37 20 county general fund. 37 21 2. The county treasurer shall include in a 37 22 prominent place on the tax statement the amount of 37 23 each of the following state tax credits that apply to 37 24 the parcel and amount by which each credit reduced the 37 25 taxes due on the parcel: 37 26 a. Homestead credit under chapter 425. 37 27 b. Military service credit under chapter 426A. 37 28 c. Extraordinary credit under chapter 425. 37 29 d. Mental health, mental retardation, and de- 37 30 velopmental disabilities property tax relief under 37 31 section 331.438A. 37 32 e. Farm tax credit under chapter 426. 37 33 Sec. 57. REPEAL. 1994 Iowa Acts, chapter 1163, 37 34 section 8, is repealed. 37 35 Sec. 58. INTERIM COMMITTEE CREATED. The 37 36 legislative council is requested to establish an 37 37 interim committee comprised of members of the general 37 38 assembly with the charge of developing a system to 37 39 regulate and contain county expenditures for mental 37 40 health, mental retardation, and developmental 37 41 disabilities and to develop a formula for distribution 37 42 of property tax relief moneys to counties under 37 43 section 331.438A, subsection 2. The committee should 37 44 be directed to report to the governor and the general 37 45 assembly prior to the 1996 legislative session. 37 46 Sec. 59. EFFECTIVE DATE. This division of this 37 47 Act, being deemed of immediate importance, takes 37 48 effect upon enactment." 37 49 #2. Title page, by striking lines 1 through 4 and 37 50 inserting the following: "An Act relating to income 38 1 tax relief, property tax relief, machinery and 38 2 equipment phase-in exemption, reimbursement, mental 38 3 health, and providing effective dates." 38 4 38 5 38 6 38 7 COMMITTEE ON WAYS AND MEANS 38 8 HALVORSON of Clayton, Chairperson 38 9 SF 69.308 76 38 10 mg/cf
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