Text: HSB00331 Text: HSB00333 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 INCOME TAX 1 3 Section 1. Section 422.7, Code 1995, is amended by adding 1 4 the following new subsection: 1 5 NEW SUBSECTION. 33. For a person who is disabled, or is 1 6 fifty-five years of age or older, or is the surviving spouse 1 7 of an individual or a survivor having an insurable interest in 1 8 an individual who would have qualified for the exemption under 1 9 this subsection for the tax year, subtract, to the extent 1 10 included, the total amount of a governmental or other pension 1 11 or retirement pay, including, but not limited to, defined 1 12 benefit or defined contribution plans, annuities, individual 1 13 retirement accounts, plans maintained or contributed to by an 1 14 employer, or maintained or contributed to by a self-employed 1 15 person as an employer, and deferred compensation plans or any 1 16 earnings attributable to the deferred compensation plans, up 1 17 to a maximum of three thousand dollars for a person who files 1 18 a separate state income tax return and up to a maximum of six 1 19 thousand dollars for a husband and wife who file a joint state 1 20 income tax return. However, a surviving spouse who is not 1 21 disabled or fifty-five years of age or older can only exclude 1 22 the amount of pension or retirement pay received as a result 1 23 of the death of the other spouse. 1 24 Sec. 2. Section 422.12, subsection 1, paragraph c, Code 1 25 1995, is amended to read as follows: 1 26 c. For each dependent, an additionalfifteenforty 1 27 dollars. As used in this section, the term "dependent" has 1 28 the same meaning as provided by the Internal Revenue Code. 1 29 Sec. 3. TAXATION STUDIES. The legislative council is 1 30 requested to establish two taxation studies during the 1995 1 31 legislative interim. One study would address taxation of 1 32 businesses, including subchapter S corporations, taxation 1 33 incentives and disincentives for economic development, and the 1 34 long-term objectives of business taxation. The legislative 1 35 council is requested to authorize up to $100,000 for 2 1 consultants and other costs associated with the business 2 2 taxation study. The other study would address other state 2 3 taxes, including inheritance, income, and sales taxes. 2 4 Sec. 4. RETROACTIVE APPLICABILITY. This division of this 2 5 Act applies retroactively to January 1, 1995, for tax years 2 6 beginning on or after that date. 2 7 DIVISION II 2 8 SUPPLEMENTAL LEVY AND COUNTY MENTAL HEALTH FUND 2 9 Sec. 5. Section 123.38, unnumbered paragraph 2, Code 1995, 2 10 is amended to read as follows: 2 11 Any licensee or permittee, or the licensee's or permittee's 2 12 executor or administrator, or any person duly appointed by the 2 13 court to take charge of and administer the property or assets 2 14 of the licensee or permittee for the benefit of the licensee's 2 15 or permittee's creditors, may voluntarily surrender a license 2 16 or permit to the division. When a license or permit is 2 17 surrendered the division shall notify the local authority, and 2 18 the division or the local authority shall refund to the person 2 19 surrendering the license or permit, a proportionate amount of 2 20 the fee received by the division or the local authority for 2 21 the license or permit as follows: If a license or permit is 2 22 surrendered during the first three months of the period for 2 23 which it was issued, the refund shall be three-fourths of the 2 24 amount of the fee; if surrendered more than three months but 2 25 not more than six months after issuance, the refund shall be 2 26 one-half of the amount of the fee; if surrendered more than 2 27 six months but not more than nine months after issuance, the 2 28 refund shall be one-fourth of the amount of the fee. No 2 29 refund shall be made, however, for any special liquor permit, 2 30 nor for a liquor control license, wine permit, or beer permit 2 31 surrendered more than nine months after issuance. For 2 32 purposes of this paragraph, any portion of license or permit 2 33 fees used for the purposes authorized in section 331.424, 2 34 subsection 1, paragraphs "a",and "b", "c", "d", "e", "f",2 35"g", and "h", and in section 331.424A, shall not be deemed 3 1 received either by the division or by a local authority. No 3 2 refund shall be made to any licensee or permittee, upon the 3 3 surrender of the license or permit, if there is at the time of 3 4 surrender, a complaint filed with the division or local 3 5 authority, charging the licensee or permittee with a violation 3 6 of this chapter. If upon a hearing on a complaint the license 3 7 or permit is not revoked or suspended, then the licensee or 3 8 permittee is eligible, upon surrender of the license or 3 9 permit, to receive a refund as provided in this section; but 3 10 if the license or permit is revoked or suspended upon hearing 3 11 the licensee or permittee is not eligible for the refund of 3 12 any portion of the license or permit fee. 3 13 Sec. 6. Section 218.99, Code 1995, is amended to read as 3 14 follows: 3 15 218.99 COUNTY AUDITORS TO BE NOTIFIED OF PATIENTS' 3 16 PERSONAL ACCOUNTS. 3 17 The administrator of a division of the department of human 3 18 services in control of a state institution shall direct the 3 19 business manager of each institution under the administrator's 3 20 jurisdiction which is mentioned in section 331.424, subsection 3 21 1, paragraphs "a"through "g"and "b" and for which services 3 22 are paid under section 331.424A to quarterly inform the 3 23 auditor of the county of legal settlement of any patient or 3 24 resident who has an amount in excess of two hundred dollars on 3 25 account in the patients' personal deposit fund and the amount 3 26 on deposit. The administrators shall direct the business 3 27 manager to further notify the auditor of the county at least 3 28 fifteen days before the release of funds in excess of two 3 29 hundred dollars or upon the death of the patient or resident. 3 30 If the patient or resident has no county of legal settlement, 3 31 notice shall be made to the director of the department of 3 32 human services and the administrator of the division of the 3 33 department in control of the institution involved. 3 34 Sec. 7. Section 225C.4, subsection 2, paragraph b, Code 3 35 1995, is amended to read as follows: 4 1 b. Establish mental health and mental retardation services 4 2 for all institutions under the control of the director of 4 3 human services and establish an autism unit, following mutual 4 4 planning with and consultation from the medical director of 4 5 the state psychiatric hospital, at an institution or a 4 6 facility administered by the administrator to provide 4 7 psychiatric and related services and other specific programs 4 8 to meet the needs of autistic personsas defined in section4 9331.424, subsection 1, and to furnish appropriate diagnostic 4 10 evaluation services. 4 11 Sec. 8. Section 331.301, subsection 12, Code 1995, is 4 12 amended to read as follows: 4 13 12. The board of supervisors may credit funds to a reserve 4 14 for the purposes authorized by subsection 11 of this section; 4 15 section 331.424, subsection 1, paragraph"l""f"; and section 4 16 331.441, subsection 2, paragraph "b". Moneys credited to the 4 17 reserve, and interest earned on such moneys, shall remain in 4 18 the reserve until expended for purposes authorized by 4 19 subsection 11 of this section; section 331.424, subsection 1, 4 20 paragraph"l""f"; or section 331.441, subsection 2, paragraph 4 21 "b". 4 22 Sec. 9. Section 331.424, subsection 1, Code 1995, is 4 23 amended to read as follows: 4 24 1. For general county services, an amount sufficient to 4 25 pay the charges for the following: 4 26 a. To the extent that the county is obligated by statute 4 27 to pay the charges for: 4 28(1) Care and treatment of patients by a state mental4 29health institute.4 30(2) Care and treatment of patients by either of the state4 31hospital-schools or by any other facility established under4 32chapter 222 and diagnostic evaluation under section 222.31.4 33(3) Care and treatment of patients under chapter 225.4 34(4)(1) Care and treatment of persons at the alcoholic 4 35 treatment center at Oakdale. However, the county may require 5 1 that an admission to the center shall be reported to the board 5 2 by the center within five days as a condition of the payment 5 3 of county funds for that admission. 5 4(5)(2) Care of children admitted or committed to the Iowa 5 5 juvenile home at Toledo. 5 6(6)(3) Clothing, transportation, medical, or other 5 7 services provided persons attending the Iowa braille and sight 5 8 saving school, the Iowa school for the deaf, or the state 5 9 hospital-school for severely handicapped children at Iowa 5 10 City, for which the county becomes obligated to pay pursuant 5 11 to sections 263.12, 269.2, and 270.4 through 270.7. 5 12b. To the extent that the board deems it advisable to pay,5 13the charges for professional evaluation, treatment, training,5 14habilitation, and care of persons who are mentally retarded,5 15autistic persons, or persons who are afflicted by any other5 16developmental disability, at a suitable public or private5 17facility providing inpatient or outpatient care in the county.5 18As used in this paragraph:5 19(1) "Developmental disability" has the meaning assigned5 20that term by 42 U.S.C. sec. 6001(7) (1976), Supp. II, 1978,5 21and Supp. III, 1979.5 22(2) "Autistic persons" means persons, regardless of age,5 23with severe communication and behavior disorders that became5 24manifest during the early stages of childhood development and5 25that are characterized by a severely disabling inability to5 26understand, communicate, learn, and participate in social5 27relationships. "Autistic persons" includes but is not limited5 28to those persons afflicted by infantile autism, profound5 29aphasia, and childhood psychosis.5 30c. Care and treatment of persons placed in the county5 31hospital, county care facility, a health care facility as5 32defined in section 135C.1, subsection 6, or any other public5 33or private facility, which placement is in lieu of admission5 34or commitment to or is upon discharge, removal, or transfer5 35from a state mental health institute, hospital-school, or6 1other facility established pursuant to chapter 222.6 2d. Amounts budgeted by the board for the cost of6 3establishment and initial operation of a community mental6 4health center in the manner and subject to the limitations6 5provided by state law.6 6e.b. Foster care and related services provided under 6 7 court order to a child who is under the jurisdiction of the 6 8 juvenile court, including court-ordered costs for a guardian 6 9 ad litem under section 232.71. 6 10f. The care, admission, commitment, and transportation of6 11mentally ill patients in state hospitals, to the extent that6 12expenses for these services are required to be paid by the6 13county, including compensation for the advocate appointed6 14under section 229.19.6 15g. Amounts budgeted by the board for mental health6 16services or mental retardation services furnished to persons6 17on either an outpatient or inpatient basis, to a school or6 18other public agency, or to the community at large, by a6 19community mental health center or other suitable facility6 20located in or reasonably near the county, provided that6 21services meet the standards of the mental health and6 22developmental disabilities commission created in section6 23225C.5 and are consistent with the annual plan for services6 24approved by the board.6 25h. Reimbursement on behalf of mentally retarded persons6 26under section 249A.12.6 27i.c. Elections, and voter registration pursuant to 6 28 chapter 48A. 6 29j.d. Employee benefits under chapters 96, 97B, and 97C, 6 30 which are associated with salaries for general county 6 31 services. 6 32k.e. Joint county and city building authorities 6 33 established under section 346.27, as provided in subsection 22 6 34 of that section. 6 35l.f. Tort liability insurance, property insurance, and 7 1 any other insurance that may be necessary in the operation of 7 2 the county, costs of a self-insurance program, costs of a 7 3 local government risk pool, and amounts payable under any 7 4 insurance agreements to provide or procure such insurance, 7 5 self-insurance program, or local government risk pool. 7 6m.g. The maintenance and operation of the courts, 7 7 including but not limited to the salary and expenses of the 7 8 clerk of the district court and other employees of the clerk's 7 9 office, and bailiffs, court costs if the prosecution fails or 7 10 if the costs cannot be collected from the person liable, costs 7 11 and expenses of prosecution under section 189A.17, salaries 7 12 and expenses of juvenile court officers under chapter 602, 7 13 court-ordered costs in domestic abuse cases under section 7 14 236.5, the county's expense for confinement of prisoners under 7 15 chapter 356A, temporary assistance to the county attorney, 7 16 county contributions to a retirement system for bailiffs, 7 17 reimbursement for judicial magistrates under section 602.6501, 7 18 claims filed under section 622.93, interpreters' fees under 7 19 section 622B.7, uniform citation and complaint supplies under 7 20 section 805.6, and costs of prosecution under section 815.13. 7 21n.h. Court-ordered costs of conciliation procedures under 7 22 section 598.16. 7 23o.i. Establishment and maintenance of a joint county 7 24 indigent defense fund pursuant to an agreement under section 7 25 28E.19. 7 26p.j. The maintenance and operation of a local emergency 7 27 management agency established pursuant to chapter 29C. 7 28 The board may require a public or private facility, as a 7 29 condition of receiving payment from county funds for services 7 30 it has provided, to furnish the board with a statement of the 7 31 income, assets, and legal residence including township and 7 32 county of each person who has received services from that 7 33 facility for which payment has been made from county funds 7 34 under paragraphs "a"through "h"and "b". However, the 7 35 facility shall not disclose to anyone the name or street or 8 1 route address of a person receiving services for which 8 2 commitment is not required, without first obtaining that 8 3 person's written permission. 8 4 Parents or other persons may voluntarily reimburse the 8 5 county or state for the reasonable cost of caring for a 8 6 patient or an inmate in a county or state facility. 8 7 Sec. 10. NEW SECTION. 331.424A COUNTY MENTAL HEALTH, 8 8 MENTAL RETARDATION, AND DEVELOPMENTAL DISABILITIES SERVICES 8 9 FUND. 8 10 1. For the purposes of this chapter, unless the context 8 11 otherwise requires, "services fund" means the county mental 8 12 health, mental retardation, and developmental disabilities 8 13 services fund created in subsection 2. The county finance 8 14 committee created in section 333A.2 shall consult with the 8 15 state-county management committee in adopting rules and 8 16 prescribing forms for administering the services fund. 8 17 2. For the fiscal year beginning July 1, 1996, and 8 18 succeeding fiscal years, county revenues from taxes and other 8 19 sources designated for mental health, mental retardation, and 8 20 developmental disabilities services shall be credited to the 8 21 mental health, mental retardation, and developmental 8 22 disabilities services fund of the county. The board shall 8 23 make appropriations from the fund for payment of services 8 24 provided under the county management plan approved pursuant to 8 25 section 331.439. 8 26 3. For the fiscal year beginning July 1, 1996, and 8 27 succeeding fiscal years, receipts from the state or federal 8 28 government for such services shall be credited to the services 8 29 fund, including moneys allotted to the county from the state 8 30 payment made pursuant to section 331.439 and moneys allotted 8 31 to the county for property tax relief pursuant to section 8 32 426B.1. 8 33 4. For the fiscal year beginning July 1, 1996, and for 8 34 each subsequent fiscal year, the county shall certify a levy 8 35 for payment of services. Unless otherwise provided by state 9 1 law, for each fiscal year, county revenues from taxes imposed 9 2 by the county credited to the services fund shall not exceed 9 3 an amount equal to the amount of base year expenditures for 9 4 services in the fiscal year beginning July 1, 1993, and ending 9 5 June 30, 1994, as defined in section 331.438 less the amount 9 6 of property tax relief to be received pursuant to section 9 7 426B.2, subsections 1 and 3, in the fiscal year for which the 9 8 budget is certified. The county auditor and the board of 9 9 supervisors shall reduce the amount of the levy certified for 9 10 the services fund by the amount of property tax relief to be 9 11 received. 9 12 5. Appropriations specifically authorized to be made from 9 13 the mental health, mental retardation, and developmental 9 14 disabilities services fund shall not be made from any other 9 15 fund of the county. 9 16 Sec. 11. Section 444.25A, subsection 3, paragraph b, 9 17 subparagraph (3), Code 1995, is amended to read as follows: 9 18 (3) Need for additional moneys for health care, treatment, 9 19 and facilities, includingmental health and mental retardation9 20care andtreatment pursuant to section 331.424, subsection 1, 9 21 paragraphs "a"through "h"and "b". 9 22 Sec. 12. EFFECTIVE AND APPLICABILITY DATES. This division 9 23 of this Act takes effect January 1, 1996, and is applicable to 9 24 taxes payable in the fiscal year beginning July 1, 1996, and 9 25 subsequent fiscal years. 9 26 DIVISION III 9 27 PROPERTY TAX RELIEF PROVISIONS 9 28 Sec. 13. Section 222.60, unnumbered paragraph 1, Code 9 29 1995, as amended by 1995 Iowa Acts, House File 483, section 9 30 12, is amended to read as follows: 9 31 All necessary and legal expenses for the cost of admission 9 32 or commitment or for the treatment, training, instruction, 9 33 care, habilitation, support and transportation of persons with 9 34 mental retardation, as provided for in the county management 9 35 plan provisions implemented pursuant to section 331.439, 10 1 subsection 1, in a state hospital-school, or in a special 10 2 unit, or any public or private facility within or without the 10 3 state, approved by the director of the department of human 10 4 services, shall be paid by either: 10 5 Sec. 14. Section 331.438, subsection 1, paragraph b, Code 10 6 1995, is amended to read as follows: 10 7 b. "State payment" means the payment made by the state to 10 8 a county determined to be eligible for the payment in 10 9 accordance with section 331.439. 10 10 1A. Except as modified based upon the actual amount of the 10 11 appropriation for purposes of state payment under section 10 12 331.439, the amount of the state payment for a fiscal year 10 13 shall be calculatedas fifty percent of the amount by which10 14the county's qualified expenditures during the immediately10 15preceding fiscal year were in excess of the amount of the10 16county's base year expendituresby applying the inflation 10 17 factor adjustment established in accordance with section 10 18 331.439, subsection 3, for that fiscal year to the amount of 10 19 county expenditures for qualified services in the previous 10 20 fiscal year. A state payment is the state funding a county 10 21 receives pursuant to section 426B.2, subsection 2. Any state 10 22 funding received by a county for property tax relief in 10 23 accordance with section 426B.2, subsections 1 and 3, is not a 10 24 state payment and shall not be included in the state payment 10 25 calculation made pursuant to this subsection. 10 26 Sec. 15. Section 331.439, Code 1995, is amended by 10 27 striking the section and inserting in lieu thereof the 10 28 following: 10 29 331.439 ELIGIBILITY FOR STATE PAYMENT. 10 30 1. The state payment to eligible counties under this 10 31 section shall be made as provided in sections 331.438 and 10 32 426B.2. A county is eligible for the state payment, as 10 33 defined in section 331.438, for the fiscal year beginning July 10 34 1, 1996, and for subsequent fiscal years if the director of 10 35 human services, in consultation with the state-county 11 1 management committee, determines for a specific fiscal year 11 2 that all of the following conditions are met: 11 3 a. The county accurately reported by October 15 the 11 4 county's expenditures for mental health, mental retardation, 11 5 and developmental disabilities services for the previous 11 6 fiscal year on forms prescribed by the department of human 11 7 services. 11 8 b. The county developed and implemented a county 11 9 management plan for the county's mental health, mental 11 10 retardation, and developmental disabilities services in 11 11 accordance with the provisions of this paragraph. The plan 11 12 shall comply with the administrative rules adopted for this 11 13 purpose by the council on human services and is subject to the 11 14 approval of the director of human services in consultation 11 15 with the state-county management committee created in section 11 16 331.438. The plan shall include a description of the county's 11 17 service management provision for mental health, mental 11 18 retardation, and developmental disabilities services. For 11 19 mental retardation and developmental disabilities service 11 20 management, the plan shall describe the county's development 11 21 and implementation of a managed system of cost-effective 11 22 individualized services and shall comply with the provisions 11 23 of paragraph "d". The goal of this part of the plan shall be 11 24 to assist the individuals served to be as independent, 11 25 productive, and integrated into the community as possible. 11 26 The service management provisions for mental health shall 11 27 comply with the provisions of paragraph "c". 11 28 c. (1) For mental health service management, the county 11 29 may either directly implement a system of service management 11 30 and contract with service providers, or contract with a 11 31 private entity to manage the system, provided all requirements 11 32 of this lettered paragraph are met by the private entity. The 11 33 mental health service management shall incorporate a single 11 34 entry point and clinical assessment process developed in 11 35 accordance with the provisions of section 331.440. The county 12 1 shall submit this part of the plan to the department of human 12 2 services for approval by April 1 for the succeeding year. 12 3 Initially, this part of the plan shall be submitted to the 12 4 department by April 1, 1996, and the county shall implement 12 5 the approved plan by July 1, 1996. 12 6 (2) The basis for determining whether a managed care 12 7 system for mental health proposed by a county is comparable to 12 8 a mental health managed care contractor approved by the 12 9 department of human services shall include but is not limited 12 10 to all of the following elements which shall be specified in 12 11 administrative rules adopted by the council on human services 12 12 in consultation with the state-county management committee: 12 13 (a) The enrollment and eligibility process. 12 14 (b) The scope of services included. 12 15 (c) The method of plan administration. 12 16 (d) The process for managing utilization and access to 12 17 services and other assistance. 12 18 (e) The quality assurance process. 12 19 (f) The risk management provisions and fiscal viability of 12 20 the provisions, if the county contracts with a private managed 12 21 care entity. 12 22 d. For mental retardation and developmental disabilities 12 23 services management, the county must either develop and 12 24 implement a managed system of care which addresses a full 12 25 array of appropriate services and cost-effective delivery of 12 26 services or contract with a state-approved managed care 12 27 contractor or contractors. Any system or contract implemented 12 28 under this paragraph shall incorporate a single entry point 12 29 and clinical assessment process developed in accordance with 12 30 the provisions of section 331.440. The elements of the 12 31 managed system of care and the state-approved managed care 12 32 contract or contracts shall be specified in rules developed by 12 33 the department of human services in consultation with the 12 34 state-county management committee and adopted by the council 12 35 on human services. Initially, this part of the plan shall be 13 1 submitted to the department for approval on or before October 13 2 1, 1996, and shall be implemented on or before January 1, 13 3 1997. In fiscal years succeeding the fiscal year of initial 13 4 implementation, this part of the plan shall be submitted to 13 5 the department of human services for approval by April 1 for 13 6 the succeeding fiscal year. 13 7 e. Changes to the approved plan are submitted sixty days 13 8 prior to the proposed change and are not to be implemented 13 9 prior to the director of human services' approval. 13 10 2. The county management plan shall address the county's 13 11 criteria for serving persons with chronic mental illness, 13 12 including any rationale used for decision making regarding 13 13 this population. 13 14 3. a. For the fiscal year beginning July 1, 1996, and 13 15 succeeding fiscal years, the county's mental health, mental 13 16 retardation, and developmental disabilities service 13 17 expenditures for a fiscal year are limited to a fixed budget 13 18 amount. The fixed budget amount shall be the amount 13 19 identified in the county's management plan and budget for the 13 20 fiscal year. The county shall be allowed an inflation factor 13 21 adjustment for services paid from the county's services fund 13 22 under section 331.424A which is in accordance with the 13 23 county's management plan and budget, implemented pursuant to 13 24 this section. 13 25 b. Based upon information contained in county management 13 26 plans and budgets, the state-county management committee shall 13 27 recommend an inflation factor adjustment to the council on 13 28 human services by November 15 for the succeeding fiscal year. 13 29 The inflation factor adjustment shall address costs associated 13 30 with new consumers of service, service cost inflation, and 13 31 investments for economy and efficiency. The council on human 13 32 services shall recommend to the governor the amount of the 13 33 inflation factor adjustment for the succeeding fiscal year for 13 34 inclusion without change in the governor's proposed budget for 13 35 the succeeding fiscal year. 14 1 c. If the general assembly has not revised the amount of 14 2 the inflation factor adjustment for a fiscal year on the date 14 3 county budgets must be approved and levies must be certified 14 4 for that fiscal year, the budgets and levies shall utilize the 14 5 inflation factor adjustment for that fiscal year included in 14 6 the governor's proposed budget. 14 7 4. If funding is available under the fixed budget, a 14 8 county that has not provided services to a service population 14 9 which is not included in the service management provisions 14 10 required under subsection 1, may provide such services. 14 11 5. Notwithstanding any other provision of law to the 14 12 contrary, a county shall have no obligation to pay for or 14 13 provide mental health, mental retardation, or developmental 14 14 disabilities services for any person that applies through the 14 15 county's single entry point and clinical assessment process 14 16 after the moneys in the county services fund under section 14 17 331.424A are expended. 14 18 6. A county shall implement the county's management plan 14 19 in a manner so as to provide adequate funding for the entire 14 20 fiscal year by budgeting for ninety-nine percent of the 14 21 funding anticipated to be available for the plan. A county 14 22 may expend all of the funding anticipated to be available for 14 23 the plan. 14 24 7. The director's approval of a county's mental health, 14 25 mental retardation, and developmental disabilities services 14 26 management plan shall not be construed to constitute 14 27 certification of the county's budget. 14 28 Sec. 16. Section 331.440, subsection 1, Code 1995, is 14 29 amended by adding the following new paragraph: 14 30 NEW PARAGRAPH. c. The single entry point and clinical 14 31 assessment process shall include provision for the county's 14 32 participation in a management information system developed in 14 33 accordance with rules adopted pursuant to subsection 3. 14 34 Sec. 17. NEW SECTION. 426B.1 APPROPRIATIONS &endash; PROPERTY 14 35 TAX RELIEF FUND. 15 1 1. A property tax relief fund is created in the state 15 2 treasury under the authority of the department of revenue and 15 3 finance. The fund shall be separate from the general fund of 15 4 the state and shall not be considered part of the general fund 15 5 of the state except in determining the cash position of the 15 6 state for payment of state obligations. The moneys in the 15 7 fund are not subject to the provisions of section 8.33 and 15 8 shall not be transferred, used, obligated, appropriated, or 15 9 otherwise encumbered except as provided in this section. 15 10 Moneys in the fund may be used for cash flow purposes, 15 11 provided that any moneys so allocated are returned to the fund 15 12 by the end of each fiscal year. However, the fund shall be 15 13 considered a special account for the purposes of section 8.53, 15 14 relating to elimination of any GAAP deficit. For the purposes 15 15 of this chapter, unless the context otherwise requires, 15 16 "property tax relief fund" means the property tax relief fund 15 17 created in this section. 15 18 2. There is appropriated to the property tax relief fund 15 19 for the indicated fiscal years from the general fund of the 15 20 state the following amounts: 15 21 a. For the fiscal year beginning July 1, 1995, sixty-one 15 22 million dollars. 15 23 b. For the fiscal year beginning July 1, 1996, seventy- 15 24 eight million dollars. 15 25 c. For the fiscal year beginning July 1, 1997, and suc- 15 26 ceeding fiscal years, ninety-five million dollars. 15 27 Sec. 18. NEW SECTION. 426B.2 PROPERTY TAX RELIEF FUND 15 28 DISTRIBUTIONS. 15 29 Moneys in the property tax relief fund shall be utilized in 15 30 each fiscal year as follows in the order listed: 15 31 1. The first sixty-one million dollars plus the amount 15 32 paid pursuant to subsection 3 in the previous fiscal year in 15 33 the property tax relief fund shall be distributed to counties 15 34 under this subsection. A county's proportion of the moneys 15 35 shall be equivalent to the sum of the following three factors: 16 1 a. One-third based upon the county's proportion of the 16 2 state's general population. 16 3 b. One-third based upon the county's proportion of the 16 4 state's total taxable property valuation assessed for taxes 16 5 payable in the previous fiscal year. 16 6 c. One-third based upon the county's proportion of all 16 7 counties' base year expenditures, as defined in section 16 8 331.438. 16 9 Moneys provided to a county for property tax relief in a 16 10 fiscal year in accordance with this section shall not be less 16 11 than the amount provided for property tax relief in the 16 12 previous fiscal year. 16 13 2. Payment of moneys to eligible counties of the state 16 14 payment in accordance with the provisions of sections 331.438 16 15 and 331.439. 16 16 3. For the fiscal year beginning July 1, 1996, and 16 17 succeeding fiscal years, the department of human services 16 18 shall estimate the amount of moneys required for the state 16 19 payment pursuant to subsection 2. Moneys remaining in the 16 20 property tax relief fund following the payment made pursuant 16 21 to subsection 1 and the estimated amount of the state payment 16 22 pursuant to subsection 2 shall be paid for property tax relief 16 23 in the same manner as provided in subsection 1 to counties 16 24 eligible for state payment under subsection 2. These payments 16 25 shall continue until the combined amount of the payments made 16 26 under this subsection and subsection 1 are equal to fifty 16 27 percent of the total of all counties' base year expenditures 16 28 as defined in section 331.438. The amount of moneys paid to a 16 29 county pursuant to this subsection shall be added in 16 30 subsequent fiscal years to the amount of moneys paid under 16 31 subsection 1. 16 32 4. Moneys remaining in the property tax relief fund 16 33 following the payments made pursuant to subsections 1, 2, and 16 34 3 shall be transferred to the homestead credit fund created in 16 35 section 425.1. This transfer shall continue until the 17 1 homestead credit is fully funded. 17 2 5. The department of human services shall notify the 17 3 director of revenue and finance of the amounts due a county in 17 4 accordance with the provisions of this section. The director 17 5 of revenue and finance shall draw warrants on the property tax 17 6 relief fund, payable to the county treasurer in the amount due 17 7 to a county in accordance with subsections 1 and 3 and mail 17 8 the warrants to the county auditors in September and March of 17 9 each year. Warrants for the state payment in accordance with 17 10 subsection 2 shall be mailed in January of each year. 17 11 Sec. 19. NEW SECTION. 426B.3 NOTIFICATION OF MENTAL 17 12 HEALTH, MENTAL RETARDATION, AND DEVELOPMENTAL DISABILITIES 17 13 EXPENDITURE RELIEF FUND PAYMENT. 17 14 1. The county auditor shall reduce the certified budget 17 15 amount received from the board of supervisors for the 17 16 succeeding fiscal year for the county mental health, mental 17 17 retardation, and development disabilities services fund 17 18 created in section 331.424A by an amount equal to the amount 17 19 the county will receive from the property tax relief fund 17 20 pursuant to section 426B.2, subsections 1 and 3, for the 17 21 succeeding fiscal year and the auditor shall determine the 17 22 rate of taxation necessary to raise the reduced amount. On 17 23 the tax list, the county auditor shall compute the amount of 17 24 taxes due and payable on each parcel before and after the 17 25 amount received from the property tax relief fund is used to 17 26 reduce the county budget. The director of revenue and finance 17 27 shall notify the county auditor of each county of the amount 17 28 of moneys the county will receive from the property tax relief 17 29 fund pursuant to section 426B.2, subsections 1 and 3, for the 17 30 succeeding fiscal year. 17 31 2. The amount of property tax dollars reduced on each 17 32 parcel as a result of the moneys received from the property 17 33 tax relief fund pursuant to section 426B.2, subsections 1 and 17 34 3, shall be noted on each tax statement prepared by the county 17 35 treasurer pursuant to section 445.23. 18 1 Sec. 20. NEW SECTION. 426B.4 RULES. 18 2 The council on human services shall consult with the state- 18 3 county management committee created in section 331.438 and the 18 4 director of revenue and finance in prescribing forms and 18 5 adopting rules pursuant to chapter 17A to administer this 18 6 chapter. 18 7 Sec. 21. PROPERTY TAX RELIEF &endash; FISCAL YEAR 1995-1996. 18 8 For the fiscal year beginning July 1, 1995, the department of 18 9 management shall notify each county auditor by June 1, 1995, 18 10 of the amount the county will receive from the property tax 18 11 relief fund for property tax relief pursuant to section 18 12 426B.2, subsection 1, for that fiscal year. The county 18 13 auditor shall reduce by the notified amount the amount of the 18 14 county's certified budget to be raised by property tax for 18 15 that fiscal year which is to be expended for mental health, 18 16 mental retardation, and developmental disabilities services 18 17 and shall revise the rate of taxation as necessary to raise 18 18 the reduced amount. The county auditor shall report the 18 19 reduction in the certified budget and the revised rate of 18 20 taxation to the department of management by June 30, 1995. 18 21 Sec. 22. FUNDING OF SESSION LAW REQUIREMENTS. If the 18 22 appropriations in section 426B.1, subsection 2, as created in 18 23 this division of this Act, are enacted by this Act, the 18 24 requirements of 1994 Iowa Acts, chapter 1163, section 8, 18 25 subsection 2, to fully fund provisions of sections 331.438 and 18 26 331.439 shall be considered to be met and the repeals 18 27 contained in 1994 Iowa Acts, chapter 1163, section 8, 18 28 subsection 2, shall be void. 18 29 Sec. 23. STATE-COUNTY MANAGEMENT COMMITTEE REVIEW &endash; 1995 18 30 INTERIM. The state-county management committee created in 18 31 section 331.438 shall review statutory provisions and 18 32 administrative rules which are intended to regulate and 18 33 contain county expenditures for mental health, mental 18 34 retardation, and developmental disabilities (MH/MR/DD) 18 35 services and the formula for distribution of property tax 19 1 relief moneys to counties under section 426B.2. The committee 19 2 should consider proposals from counties and other interested 19 3 persons for a distribution formula factor which rewards or 19 4 provides incentives for economy and efficiency in providing 19 5 mental health, mental retardation, and developmental 19 6 disabilities services; and a mechanism for a county to appeal 19 7 to the state if it is believed the county is unfairly treated 19 8 under an established funding formula. In addition, the 19 9 committee shall consider tort and other liability issues 19 10 associated with a county managing MH/MR/DD expenditures in 19 11 accordance with a fixed budget and make recommendations to 19 12 address the issues. The committee shall review the dates 19 13 required under section 331.439 and chapter 426B, as enacted by 19 14 this Act and make recommendations for change if revisions are 19 15 deemed necessary. The committee shall report to the governor 19 16 and the general assembly on or before December 1, 1995. 19 17 Sec. 24. LEVY STUDY. The county finance committee created 19 18 in chapter 333A shall consult with any interested parties in 19 19 studying the ramifications of consolidating the county general 19 20 basic levies and the general supplemental levies and other 19 21 proposals involving the levies. The committee shall be 19 22 assisted by four legislators with one each appointed by the 19 23 following leaders: majority leader of the senate, minority 19 24 leader of the senate, speaker of the house of representatives, 19 25 and minority leader of the house of representatives. The 19 26 legislative appointees are eligible for per diem and actual 19 27 expenses for their assistance to the committee. The committee 19 28 shall report to the governor and the general assembly with 19 29 findings and recommendations on or before January 4, 1996. 19 30 Sec. 25. EFFECTIVE DATE. Section 21 of this division of 19 31 this Act, relating to property tax relief for fiscal year 19 32 1995-1996, being deemed of immediate importance, takes effect 19 33 upon enactment. 19 34 DIVISION IV 19 35 COUNTY PROPERTY TAX LIMITATION &endash; FISCAL YEAR 1997-1998 20 1 Sec. 26. NEW SECTION. 444.25B PROPERTY TAX LIMITATION 20 2 FOR FISCAL YEAR 1998. 20 3 1. COUNTY LIMITATION. The maximum amount of property tax 20 4 dollars which may be certified by a county for taxes payable 20 5 in the fiscal year beginning July 1, 1997, shall not exceed 20 6 the amount of property tax dollars certified by the county for 20 7 taxes payable in the fiscal year beginning July 1, 1996, for 20 8 each of the levies for the following, except for the levies on 20 9 the increase in taxable valuation due to new construction, 20 10 additions or improvements to existing structures, remodeling 20 11 of existing structures for which a building permit is 20 12 required, annexation, and phasing out of tax exemptions, and 20 13 on the increase in valuation of taxable property as a result 20 14 of a comprehensive revaluation by a private appraiser under a 20 15 contract entered into prior to January 1, 1992, or as a result 20 16 of a comprehensive revaluation directed or authorized by the 20 17 conference board prior to January 1, 1992, with documentation 20 18 of the contract, authorization, or directive on the 20 19 revaluation provided to the director of revenue and finance, 20 20 if the levies are equal to or less than the levies for the 20 21 previous year, levies on that portion of the taxable property 20 22 located in an urban renewal project the tax revenues from 20 23 which are no longer divided as provided in section 403.19, 20 24 subsection 2, or as otherwise provided in this section: 20 25 a. General county services under section 331.422, 20 26 subsection 1. 20 27 b. Rural county services under section 331.422, subsection 20 28 2. 20 29 c. Other taxes under section 331.422, subsection 4. 20 30 2. EXCEPTIONS. The limitations provided in subsection 1 20 31 do not apply to the levies made for the following: 20 32 a. Debt service to be deposited into the debt service fund 20 33 pursuant to section 331.430. 20 34 b. Taxes approved by a vote of the people which are 20 35 payable during the fiscal year beginning July 1, 1997. 21 1 c. Hospitals pursuant to chapters 37, 347, and 347A. 21 2 d. Emergency management to be deposited into the local 21 3 emergency management fund and expended for development of 21 4 hazardous substance teams pursuant to chapter 29C. 21 5 e. Unusual need for additional moneys to finance existing 21 6 programs which would provide substantial benefit to county 21 7 residents or compelling need to finance new programs which 21 8 would provide substantial benefit to county residents. The 21 9 increase in taxes levied under this exception for the fiscal 21 10 year beginning July 1, 1997, is limited to no more than the 21 11 product of the total tax dollars levied in the fiscal year 21 12 beginning July 1, 1996, and the percent change, computed to 21 13 two decimal places, in the price index for government 21 14 purchases by type for state and local governments computed for 21 15 the third quarter of calendar year 1996 from that computed for 21 16 the third quarter of calendar year 1995. 21 17 For purposes of this paragraph, the price index for 21 18 government purchases by type for state and local governments 21 19 is defined by the bureau of economic analysis of the United 21 20 States department of commerce and published in table 7.11 of 21 21 the national income and products accounts. For the fiscal 21 22 year beginning July 1, 1997, the price index used shall be the 21 23 revision published in the November 1996 of the United States 21 24 department of commerce publication, "survey of current 21 25 business". For purposes of this paragraph, tax dollars levied 21 26 in the fiscal year beginning July 1, 1996, shall not include 21 27 funds levied for paragraphs "a", "b", and "c" of this 21 28 subsection. 21 29 Application of this exception shall require an original 21 30 publication of the budget and a public hearing and a second 21 31 publication and a second hearing both in the manner and form 21 32 prescribed by the director of the department of management, 21 33 notwithstanding the provisions of section 331.434. The 21 34 publications and hearings prescribed in this paragraph shall 21 35 be held and the budget certified no later than March 15. The 22 1 taxes levied for counties whose budgets are certified after 22 2 March 15, 1997, shall be frozen at the fiscal year beginning 22 3 July 1, 1996, level. 22 4 3. APPEAL PROCEDURES. In lieu of the procedures in 22 5 sections 24.48 and 331.426, which procedures do not apply for 22 6 taxes payable in the fiscal year beginning July 1, 1997, if a 22 7 county needs to raise property tax dollars from a tax levy in 22 8 excess of the limitations imposed by subsection 1, the 22 9 following procedures apply: 22 10 a. Not later than March 1, and after the publication and 22 11 public hearing on the budget in the manner and form prescribed 22 12 by the director of the department of management, 22 13 notwithstanding section 331.434, the county shall petition the 22 14 state appeal board for approval of a property tax increase in 22 15 excess of the increase provided for in subsection 2, paragraph 22 16 "e", on forms furnished by the director of the department of 22 17 management. Applications received after March 1 shall be 22 18 automatically ineligible for consideration by the board. 22 19 b. Additional costs incurred by the county due to any of 22 20 the following circumstances shall be the basis for justifying 22 21 the excess in property tax dollars: 22 22 (1) Natural disaster or other life-threatening 22 23 emergencies. 22 24 (2) Unusual need for additional moneys to finance existing 22 25 programs which would provide substantial benefit to county 22 26 residents or compelling need to finance new programs which 22 27 would provide substantial benefit to county residents. 22 28 (3) Need for additional moneys for health care, treatment, 22 29 and facilities pursuant to section 331.424, subsection 1, 22 30 paragraphs "a" and "b". 22 31 (4) Judgments, settlements, and related costs arising out 22 32 of civil claims against the county and its officers, 22 33 employees, and agents, as defined in chapter 670. 22 34 c. The state appeal board shall approve, disapprove, or 22 35 reduce the amount of excess property tax dollars requested. 23 1 The board shall take into account the intent of this section 23 2 to provide property tax relief. The decision of the board 23 3 shall be rendered at a regular or special meeting of the board 23 4 within twenty days of the board's receipt of an appeal. 23 5 d. Within seven days of receipt of the decision of the 23 6 state appeal board, the county shall adopt and certify its 23 7 budget under section 331.434, which budget may be protested as 23 8 provided in section 331.436. The budget shall not contain an 23 9 amount of property tax dollars in excess of the amount 23 10 approved by the state appeal board. 23 11 4. Rate adjustment by county auditor. In addition to the 23 12 requirement of the county auditor in section 444.3 to 23 13 establish a rate of tax which does not exceed the rate 23 14 authorized by law, the county auditor shall also adjust the 23 15 rate if the amount of property tax dollars to be raised is in 23 16 excess of the amount specified in subsection 1, as may be 23 17 adjusted pursuant to subsection 3. 23 18 Sec. 27. Section 444.27, Code 1995, is amended to read as 23 19 follows: 23 20 444.27 SECTIONS VOID. 23 21 1. For purposes of section 444.25, sections 24.48 and 23 22 331.426 are void for the fiscal years beginning July 1, 1993, 23 23 and July 1, 1994. For purposes of section 444.25A, sections 23 24 24.48 and 331.426 are void for the fiscal years beginning July 23 25 1, 1995, and July 1, 1996. 23 26 2. For purposes of section 444.25B, sections 24.48 and 23 27 331.426 are void for the fiscal year beginning July 1, 1997. 23 28 DIVISION V 23 29 INDUSTRIAL MACHINERY, EQUIPMENT AND COMPUTERS PROPERTY TAX 23 30 EXEMPTION AND REPLACEMENT 23 31 Sec. 28. Section 427B.17, Code 1995, is amended to read as 23 32 follows: 23 33 427B.17 PROPERTY SUBJECT TO SPECIAL VALUATION. 23 34 1. For property defined in section 427A.1, subsection 1, 23 35 paragraphs "e" and "j", acquired or initially leased on or 24 1 after January 1, 1982, the taxpayer's valuation shall be 24 2 limited to thirty percent of the net acquisition cost of the 24 3 property, except as otherwise provided in subsections 2 and 3. 24 4 For purposes of this section, "net acquisition cost" means the 24 5 acquired cost of the property including all foundations and 24 6 installation cost less any excess cost adjustment. 24 7 For purposes of thissectionsubsection: 24 81. Property assessed by the department of revenue and24 9finance pursuant to sections 428.24 to 428.29, or chapters24 10433, 434 and 436 to 438 shall not receive the benefits of this24 11section.24 122.a. Property acquired before January 1, 1982, which was 24 13 owned or used before January 1, 1982, by a related person 24 14 shall not receive the benefits of thissectionsubsection. 24 153.b. Property acquired on or after January 1, 1982, which 24 16 was owned and used by a related person shall not receive any 24 17 additional benefits under thissectionsubsection. 24 184.c. Property which was owned or used before January 1, 24 19 1982, and subsequently acquired by an exchange of like 24 20 property shall not receive the benefits of thissection24 21 subsection. 24 225.d. Property which was acquired on or after January 1, 24 23 1982, and subsequently exchanged for like property shall not 24 24 receive any additional benefits under thissectionsubsection. 24 256.e. Property acquired before January 1, 1982, which is 24 26 subsequently leased to a taxpayer or related person who 24 27 previously owned the property shall not receive the benefits 24 28 of thissectionsubsection. 24 297.f. Property acquired on or after January 1, 1982, which 24 30 is subsequently leased to a taxpayer or related person who 24 31 previously owned the property shall not receive any additional 24 32 benefits under thissectionsubsection. 24 33 For purposes of thissectionsubsection, "related person" 24 34 means a person who owns or controls the taxpayer's business 24 35 and another business entity from which property is acquired or 25 1 leased or to which property is sold or leased. Business 25 2 entities are owned or controlled by the same person if the 25 3 same person directly or indirectly owns or controls fifty 25 4 percent or more of the assets or any class of stock or who 25 5 directly or indirectly has an interest of fifty percent or 25 6 more in the ownership or profits. 25 7 2. Property defined in section 427A.1, subsection 1, 25 8 paragraphs "e" and "j", which is first assessed for taxation 25 9 in this state on or after January 1, 1995, shall be exempt 25 10 from taxation. 25 11 3. Property defined in section 427A.1, subsection 1, 25 12 paragraphs "e" and "j", and assessed under section 427B.17, 25 13 subsection 1, shall be valued by the local assessor as follows 25 14 for the following assessment years: 25 15 a. For the assessment year beginning January 1, 1999, at 25 16 twenty-two percent of the net acquisition cost. 25 17 b. For the assessment year beginning January 1, 2000, at 25 18 fourteen percent of the net acquisition cost. 25 19 c. For the assessment year beginning January 1, 2001, at 25 20 six percent of the net acquisition cost. 25 21 d. For the assessment year beginning January 1, 2002, and 25 22 succeeding assessment years, at zero percent of the net 25 23 acquisition cost. 25 24 4. Property assessed pursuant to this section shall not be 25 25 eligible to receive a partial exemption under sections 427B.1 25 26 to 427B.6. 25 27 5. This section shall not apply to property assessed by 25 28 the department of revenue and finance pursuant to sections 25 29 428.24 to 428.29, or chapters 433, 434, and 436 to 438, and 25 30 such property shall not receive the benefits of this section. 25 31 Any electric power generating plant which operated during 25 32 the preceding assessment year at a net capacity factor of more 25 33 than twenty percent, shall not receive the benefits of this 25 34 section or of sections 15.332 and 15.334. For purposes of 25 35 this section, "electric power generating plant" means any name 26 1 plate rated electric power generating plant, in which electric 26 2 energy is produced from other forms of energy, including all 26 3 taxable land, buildings, and equipment used in the production 26 4 of such energy. "Net capacity factor" means net actual 26 5 generation divided by the product of net maximum capacity 26 6 times the number of hours the unit was in the active state 26 7 during the assessment year. Upon commissioning, a unit is in 26 8 the active state until it is decommissioned. "Net actual 26 9 generation" means net electrical megawatt hours produced by 26 10 the unit during the preceding assessment year. "Net maximum 26 11 capacity" means the capacity the unit can sustain over a 26 12 specified period when not restricted by ambient conditions or 26 13 equipment deratings, minus the losses associated with station 26 14 service or auxiliary loads. 26 15 6. The taxpayer's valuation of property defined in section 26 16 427A.1, subsection 1, paragraphs "e" and "j", and located in 26 17 an urban renewal area for which an urban renewal plan provides 26 18 for the division of taxes as provided in section 403.19 to pay 26 19 the principal and interest on loans, advances, bonds issued 26 20 under the authority of section 403.9, subsection 1, or 26 21 indebtedness incurred by a city or county to finance an urban 26 22 renewal project within the urban renewal area, if such loans, 26 23 advances, or bonds were issued or indebtedness incurred, on or 26 24 after January 1, 1982, and on or before June 30, 1995, shall 26 25 be limited to thirty percent of the net acquisition cost of 26 26 the property. Such property located in an urban renewal area 26 27 shall not be valued pursuant to subsection 2 or 3, whichever 26 28 is applicable, until the assessment year following the 26 29 calendar year in which the obligations created by any loans, 26 30 advances, bonds, or indebtedness payable from the division of 26 31 taxes as provided in section 403.19 have been retired. The 26 32 taxpayer's valuation for such property shall then be the 26 33 valuation specified in subsection 2 or 3, whichever is 26 34 applicable, for the applicable assessment year. If the loans, 26 35 advances, or bonds issued, or indebtedness incurred between 27 1 January 1, 1982, and June 30, 1995, are refinanced or refunded 27 2 after June 30, 1995, the valuation of such property shall then 27 3 be the valuation specified in subsection 2 or 3, whichever is 27 4 applicable, for the applicable assessment year beginning with 27 5 the assessment year following the calendar year in which any 27 6 of those loans, advances, bonds, or other indebtedness are 27 7 refinanced or refunded after June 30, 1995. 27 8 7. For the purpose of dividing taxes under section 260E.4 27 9 or 260F.4, the employer's or business's valuation of property 27 10 defined in section 427A.1, subsection 1, paragraphs "e" and 27 11 "j", and used to fund a new jobs training project which 27 12 project's first written agreement providing for a division of 27 13 taxes as provided in section 403.19 is approved on or before 27 14 June 30, 1995, shall be limited to thirty percent of the net 27 15 acquisition cost of the property. An employer's or business's 27 16 taxable property used to fund a new jobs training project 27 17 shall not be valued pursuant to subsection 2 or 3, whichever 27 18 is applicable, until the assessment year following the 27 19 calendar year in which the certificates or other funding 27 20 obligations have been retired or escrowed. The taxpayer's 27 21 valuation for such property shall then be the valuation 27 22 specified in subsection 1 for the applicable assessment year. 27 23 If the certificates issued, or other funding obligations 27 24 incurred, between January 1, 1982, and June 30, 1995, are 27 25 refinanced or refunded after June 30, 1995, the valuation of 27 26 such property shall then be the valuation specified in 27 27 subsection 2 or 3, whichever is applicable, for the applicable 27 28 assessment year beginning with the assessment year following 27 29 the calendar year in which those certificates or other funding 27 30 obligations are refinanced or refunded after June 30, 1995. 27 31 Sec. 29. NEW SECTION. 427B.18 REPLACEMENT. 27 32 Beginning with the fiscal year beginning July 1, 1996, each 27 33 county treasurer shall be paid from the industrial machinery, 27 34 equipment and computers replacement fund an amount equal to 27 35 the amount of the industrial machinery, equipment and 28 1 computers tax replacement claim, as calculated in section 28 2 427B.19. 28 3 Sec. 30. NEW SECTION. 427B.19 ASSESSOR AND COUNTY 28 4 AUDITOR DUTIES. 28 5 1. On or before July 1 of each fiscal year, the assessor 28 6 shall determine the total assessed value of the property 28 7 assessed under section 427B.17 for taxes payable in that 28 8 fiscal year and the total assessed value of such property 28 9 assessed as of January 1, 1994, and shall report the 28 10 valuations to the county auditor. 28 11 2. On or before July 1 of each fiscal year, the assessor 28 12 shall determine the valuation of all commercial and industrial 28 13 property assessed for taxes payable in that fiscal year and 28 14 the valuation of such property assessed as of January 1, 1994, 28 15 and shall report the valuations to the county auditor. 28 16 3. On or before July 1, 1996, and on or before July 1 of 28 17 each succeeding fiscal year through June 30, 2006, the county 28 18 auditor shall prepare a statement, based upon the report 28 19 received pursuant to subsections 1 and 2, listing for each 28 20 taxing district in the county: 28 21 a. Beginning with the assessment year beginning January 1, 28 22 1995, the difference between the assessed valuation of 28 23 property assessed pursuant to section 427B.17 for that year 28 24 and the total assessed value of such property assessed as of 28 25 January 1, 1994. If the total assessed value of the property 28 26 assessed as of January 1, 1994, is less, there is no tax 28 27 replacement for the fiscal year. 28 28 b. The tax levy rate for each taxing district for that 28 29 fiscal year. 28 30 c. The industrial machinery, equipment and computers tax 28 31 replacement claim for each taxing district. For fiscal years 28 32 beginning July 1, 1996, and ending June 30, 2001, the 28 33 replacement claim is equal to the amount determined pursuant 28 34 to paragraph "a", multiplied by the tax rate specified in 28 35 paragraph "b". For fiscal years beginning July 1, 2001, and 29 1 ending June 30, 2006, the replacement claim is equal to the 29 2 product of the amount determined pursuant to paragraph "a", 29 3 less any increase in valuations determined in paragraph "d", 29 4 and the tax rate specified in paragraph "b". If the amount 29 5 subtracted under paragraph "d" is more than the amount 29 6 determined in paragraph "a", there is no tax replacement for 29 7 the fiscal year. 29 8 d. Beginning with the assessment year beginning January 1, 29 9 2000, the auditor shall reduce the amount listed in paragraph 29 10 "a", by the increase, if any, in assessed valuations of 29 11 commercial and industrial property in the assessment year 29 12 beginning January 1, 1994, and the assessment year for which 29 13 taxes are due and payable in that fiscal year. If the 29 14 calculation under this paragraph indicates a net decrease in 29 15 aggregate valuation of such property, the industrial 29 16 machinery, equipment and computers tax replacement claim for 29 17 each taxing district is equal to the amount determined 29 18 pursuant to paragraph "a", multiplied by the tax rate 29 19 specified in paragraph "b". 29 20 4. The county auditor shall certify and forward one copy 29 21 of the statement to the department of revenue and finance not 29 22 later than July 1 of each year. 29 23 Sec. 31. NEW SECTION. 427B.19A FUND CREATED. 29 24 1. The industrial machinery, equipment and computers 29 25 property tax replacement fund is created. For the fiscal year 29 26 beginning July 1, 1996, through the fiscal year ending June 29 27 30, 2006, there is appropriated annually from the general fund 29 28 of the state to the department of revenue and finance to be 29 29 credited to the industrial machinery, equipment and computers 29 30 property tax replacement fund, an amount sufficient to 29 31 implement this division. 29 32 2. If an amount appropriated for a fiscal year is 29 33 insufficient to pay all claims, the director shall prorate the 29 34 disbursements from the fund to the county treasurers and shall 29 35 notify the county auditors of the pro rata percentage on or 30 1 before August 1. 30 2 3. The replacement claims shall be paid to each county 30 3 treasurer in equal installments in September and March of each 30 4 year. The county treasurer shall apportion the replacement 30 5 claim payments among the eligible taxing districts in the 30 6 county. 30 7 Sec. 32. NEW SECTION. 427B.19B GUARANTEE OF STATE 30 8 REPLACEMENT FUNDS. 30 9 For the fiscal years beginning July 1, 1996, and ending 30 10 June 30, 2006, if the industrial machinery, equipment and 30 11 computers property tax replacement fund is insufficient to pay 30 12 in full the total of the amounts certified to the director of 30 13 revenue and finance, the director shall compute for each 30 14 county the difference between the total of all replacement 30 15 claims for each taxing district within the county and the 30 16 amount paid to the county treasurer for disbursement to each 30 17 taxing district in the county. The assessor, for the 30 18 assessment year beginning January 1 preceding the fiscal year 30 19 for which a sufficient appropriation was not made, shall 30 20 revalue all property described in section 427B.17, subsections 30 21 2 and 3, in the county at a percentage of net acquisition cost 30 22 which will yield from each taxing district its shortfall and 30 23 the property shall be assessed and taxed in such manner for 30 24 taxes due and payable in the following fiscal year in addition 30 25 to being assessed and taxed in the applicable manner under 30 26 section 427B.17. When conducting the revaluation, the 30 27 assessor shall increase the percentage of net acquisition cost 30 28 of such property by the same percentage point. Property tax 30 29 dollar amounts certified pursuant to this section shall not be 30 30 considered property tax dollars certified for purposes of the 30 31 property tax limitation in chapter 444. 30 32 Sec. 33. Section 257.3, subsection 1, Code 1995, is 30 33 amended by adding the following new unnumbered paragraph: 30 34 NEW UNNUMBERED PARAGRAPH. The amount paid to each school 30 35 district for the tax replacement claim for industrial 31 1 machinery, equipment and computers under section 427B.19A 31 2 shall be regarded as property tax. The portion of the payment 31 3 which is foundation property tax shall be determined by 31 4 applying the foundation property tax rate to the amount 31 5 computed under section 427B.19, subsection 3, paragraph "a", 31 6 as adjusted by paragraph "d", if any adjustment was made. 31 7 EXPLANATION 31 8 This bill makes changes relating to income tax and the 31 9 property tax on industrial machinery, equipment and computers 31 10 and to services paid for by property taxes and property tax 31 11 reductions and credits. 31 12 Division I of the bill allows certain persons to deduct all 31 13 types of pension income in computing income for state indi- 31 14 vidual income tax purposes. The bill allows for tax years 31 15 beginning in the 1995 calendar year and for all subsequent tax 31 16 years, a deduction of pension income of up to a maximum of 31 17 $3,000 for a person who files a separate return and $6,000 for 31 18 a husband and wife who file a joint return. 31 19 Division I increases the state income tax credit for 31 20 dependents from $15 to $40. This increase applies 31 21 retroactively to January 1, 1995, for tax years beginning on 31 22 or after that date. Division I includes a request for the 31 23 legislative council to authorize up to $100,000 for taxation 31 24 studies during the 1995 legislative interim. 31 25 Divisions II, III, and IV relate to property taxes and 31 26 other provisions involving mental health, mental retardation, 31 27 and developmental disabilities (MH/MR/DD) services. 31 28 In division II, section 331.424, subsection 1, providing 31 29 supplemental levy authority for general county services, is 31 30 amended to remove authority to levy under the supplemental 31 31 levy for MH/MR/DD services. Conforming amendments are made to 31 32 sections 123.38, 218.99, 225C.4, 331.301, and 444.25A. 31 33 New section 331.424A creates a county MH/MR/DD services 31 34 fund. County authority to levy for MH/MR/DD services is 31 35 provided for under this section and all county revenues and 32 1 expenditures for such services are to be paid from this fund. 32 2 The levy authority is limited to a base year amount and is 32 3 subject to further reductions for property tax relief paid by 32 4 the state. This division takes effect January 1, 1996, for 32 5 tax years beginning on or after July 1, 1996. 32 6 Division III relates to property tax relief. 32 7 Section 222.60 requires counties to pay for services for 32 8 persons with mental retardation. This section makes the 32 9 payment requirement subject to the county management plan 32 10 provisions in section 331.439. 32 11 Section 331.438 relates to state payment to counties for 32 12 the costs of MH/MR/DD services. Under current law, fiscal 32 13 year 1993-1994 is established as a base year for net county 32 14 expenditures for MH/MR/DD services. Beginning with fiscal 32 15 year 1996-1997, the state is to annually provide funding to 32 16 eligible counties for 50 percent of the increase in the prior 32 17 fiscal year over the amount of base year expenditures. The 32 18 bill changes the state funding requirement to an inflation 32 19 factor adjustment established by the general assembly. 32 20 Section 331.439 provides the eligibility requirements for a 32 21 county to receive the state payment under section 331.438. 32 22 This section is stricken and rewritten. The changes from 32 23 current law include a change in the dates by which a county 32 24 must submit for approval and implement a managed care system 32 25 for mental health services from submitting by March 1 and 32 26 implementing in fiscal year 1995-1996 to submitting by April 32 27 1, 1996, and implementing July 1, 1996; revising provisions 32 28 involving managed care for mental retardation services to 32 29 authorize a county to implement managed care for mental 32 30 retardation and developmental disabilities under a range of 32 31 options and to set a specific date of January 1, 1997, for the 32 32 initial implementation; authorize a county to provide services 32 33 to populations which are not included in the service 32 34 management provisions if funding is available; requiring 32 35 county MH/MR/DD service expenditures to operate under a fixed 33 1 budget beginning with fiscal year 1996-1997; providing for an 33 2 inflation factor adjustment for the fixed budget; authorizing 33 3 the state-county management committee to recommend the 33 4 inflation factor adjustment to the council on human services 33 5 for inclusion, without change, in the governor's proposed 33 6 budget, and that the governor's recommendation be used for 33 7 county budgets if the general assembly has not enacted an 33 8 adjustment amount by the time county budgets must be 33 9 certified; requiring the county management plan to incorporate 33 10 the single entry point and clinical assessment provisions 33 11 required under current law; providing the elements comprising 33 12 the basis for determining whether a system for managed mental 33 13 health care proposed by a county is comparable to the state- 33 14 approved managed care contractor; requiring the county plan to 33 15 address the county's criteria for serving persons with chronic 33 16 mental illness; providing that a county's obligation to pay 33 17 for MH/MR/DD services is limited to the amount of funding 33 18 available under the county's approved plan and fixed budget; 33 19 requiring implementation of the county management plan by 33 20 budgeting for 99 percent of the anticipated funding; and, as 33 21 under current law, providing that the director of human 33 22 services' approval of a county management plan does not 33 23 constitute certification of the county's budget. 33 24 Section 331.440 provides requirements for counties to 33 25 implement a "single entry point process" for the delivery of 33 26 MH/MR/DD services paid for in whole or part by county funds. 33 27 This section is amended to require the process to incorporate 33 28 a management information system. 33 29 New section 426B.1 creates a property tax relief fund under 33 30 the authority of the department of revenue and finance and 33 31 makes standing limited appropriations to the fund. 33 32 New section 426B.2 outlines requirements for making 33 33 payments from the property tax relief fund. 33 34 A three-part formula is incorporated in the permanent 33 35 statute for the property tax relief fund. The first $61 34 1 million is to be distributed to counties for property tax 34 2 relief based upon a county's proportion of the total of county 34 3 base year expenditures for MH/MR/DD assistance in fiscal year 34 4 1993-1994. Next, remaining moneys are distributed for the 34 5 state payment described above. The third part of the formula 34 6 requires any other remaining moneys to be distributed for 34 7 property tax relief for MH/MR/DD expenditures until the relief 34 8 is equal to 50 percent of the total of county base year 34 9 expenditures. When this point is reached, moneys are to be 34 10 transferred to the homestead credit fund. The amount of 34 11 property tax relief moneys received by a county is determined 34 12 by a three-factor formula based upon the county's proportion 34 13 of the state's general population, taxable property valuation, 34 14 and the overall spending for MH/MR/DD services. 34 15 New section 426B.3 requires the director of revenue and 34 16 finance to notify counties of the amount the counties will 34 17 receive from the fund for property tax relief in the next 34 18 fiscal year. The county auditor is required to reduce the 34 19 property tax dollars requested for the county's certified 34 20 budget for the county's MH/MR/DD fund in the succeeding fiscal 34 21 year by the amount the county will receive for property tax 34 22 relief. In addition, the county auditor is to compute the 34 23 reduction in property taxes for each parcel as a result of the 34 24 state funding. 34 25 New section 426B.4 authorizes the council on human ser- 34 26 vices, in consultation with the state-county management 34 27 committee and director of revenue and finance, to adopt 34 28 administrative rules to implement the codified provisions in 34 29 the bill. 34 30 Section 445.23 is amended to require tax statements to 34 31 include the total amount of state tax credits that apply to 34 32 the property and the amount by which the credits reduced the 34 33 taxes on the parcel. 34 34 The bill provides that property tax relief to be received 34 35 by a county for fiscal year 1995-1996 is to be reduced from 35 1 the county's certified budget for that fiscal year and 35 2 requires reporting to the department of management. This 35 3 provision takes effect upon enactment. 35 4 Included in 1994 Iowa Acts, chapter 1163, which provided an 35 5 extension in the property tax limitations on counties for 35 6 fiscal years 1995-1996 and 1996-1997, were contingent repeal 35 7 provisions of the extension in the event the state does not 35 8 enact appropriations to fulfill statutory funding obligations 35 9 included in that Act to be enacted by certain dates in 1995 35 10 and 1996. The required 1995 legislative session enactment was 35 11 enacted in 1995 Iowa Acts, House File 132. However, for 1996, 35 12 this bill specifies that, if enacted, the appropriations in 35 13 this bill fulfill the statutory funding obligations required 35 14 by no later than April 1, 1996, and the contingent repeal 35 15 which would take effect on that date does not apply, so the 35 16 property tax limitations would continue for the 1996-1997 35 17 fiscal year. 35 18 The state-county management committee is required to review 35 19 the effect of various provisions of the bill and include 35 20 recommendations in the committee's annual report. 35 21 Division IV extends the county property tax limitation for 35 22 an additional year through fiscal year 1998. 35 23 Division V provides for the complete exemption of new 35 24 machinery, equipment and computers as of January 1, 1995, and 35 25 phases out existing machinery, equipment and computers as of 35 26 January 1, 1999. The exemption and phaseout will begin 35 27 affecting taxing districts beginning with the 1996-1997 fiscal 35 28 year and the 2000-2001 fiscal year, respectively. Provision 35 29 is made for the payment to taxing districts of the decreased 35 30 taxes resulting from the decrease in valuations from the 35 31 valuations of machinery, equipment and computers established 35 32 as of January 1, 1994. 35 33 LSB 2638YC 76 35 34 jp/jw/5
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