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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 STUDY. The legislative council is 1 30 requested to establish a taxation study during the 1995 1 31 legislative interim period. The study would address taxation 1 32 of 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. 2 3 Sec. 4. RETROACTIVE APPLICABILITY. This division of this 2 4 Act applies retroactively to January 1, 1995, for tax years 2 5 beginning on or after that date. 2 6 DIVISION II 2 7 SUPPLEMENTAL LEVY AND COUNTY MENTAL HEALTH FUND 2 8 Sec. 5. Section 123.38, unnumbered paragraph 2, Code 1995, 2 9 is amended to read as follows: 2 10 Any licensee or permittee, or the licensee's or permittee's 2 11 executor or administrator, or any person duly appointed by the 2 12 court to take charge of and administer the property or assets 2 13 of the licensee or permittee for the benefit of the licensee's 2 14 or permittee's creditors, may voluntarily surrender a license 2 15 or permit to the division. When a license or permit is 2 16 surrendered the division shall notify the local authority, and 2 17 the division or the local authority shall refund to the person 2 18 surrendering the license or permit, a proportionate amount of 2 19 the fee received by the division or the local authority for 2 20 the license or permit as follows: If a license or permit is 2 21 surrendered during the first three months of the period for 2 22 which it was issued, the refund shall be three-fourths of the 2 23 amount of the fee; if surrendered more than three months but 2 24 not more than six months after issuance, the refund shall be 2 25 one-half of the amount of the fee; if surrendered more than 2 26 six months but not more than nine months after issuance, the 2 27 refund shall be one-fourth of the amount of the fee. No 2 28 refund shall be made, however, for any special liquor permit, 2 29 nor for a liquor control license, wine permit, or beer permit 2 30 surrendered more than nine months after issuance. For 2 31 purposes of this paragraph, any portion of license or permit 2 32 fees used for the purposes authorized in section 331.424, 2 33 subsection 1, paragraphs "a",and "b", "c", "d", "e", "f",2 34"g", and "h", and in section 331.424A, shall not be deemed 2 35 received either by the division or by a local authority. No 3 1 refund shall be made to any licensee or permittee, upon the 3 2 surrender of the license or permit, if there is at the time of 3 3 surrender, a complaint filed with the division or local 3 4 authority, charging the licensee or permittee with a violation 3 5 of this chapter. If upon a hearing on a complaint the license 3 6 or permit is not revoked or suspended, then the licensee or 3 7 permittee is eligible, upon surrender of the license or 3 8 permit, to receive a refund as provided in this section; but 3 9 if the license or permit is revoked or suspended upon hearing 3 10 the licensee or permittee is not eligible for the refund of 3 11 any portion of the license or permit fee. 3 12 Sec. 6. Section 218.99, Code 1995, is amended to read as 3 13 follows: 3 14 218.99 COUNTY AUDITORS TO BE NOTIFIED OF PATIENTS' 3 15 PERSONAL ACCOUNTS. 3 16 The administrator of a division of the department of human 3 17 services in control of a state institution shall direct the 3 18 business manager of each institution under the administrator's 3 19 jurisdiction which is mentioned in section 331.424, subsection 3 20 1, paragraphs "a"through "g"and "b" and for which services 3 21 are paid under section 331.424A to quarterly inform the 3 22 auditor of the county of legal settlement of any patient or 3 23 resident who has an amount in excess of two hundred dollars on 3 24 account in the patients' personal deposit fund and the amount 3 25 on deposit. The administrators shall direct the business 3 26 manager to further notify the auditor of the county at least 3 27 fifteen days before the release of funds in excess of two 3 28 hundred dollars or upon the death of the patient or resident. 3 29 If the patient or resident has no county of legal settlement, 3 30 notice shall be made to the director of the department of 3 31 human services and the administrator of the division of the 3 32 department in control of the institution involved. 3 33 Sec. 7. Section 225C.4, subsection 2, paragraph b, Code 3 34 1995, is amended to read as follows: 3 35 b. Establish mental health and mental retardation services 4 1 for all institutions under the control of the director of 4 2 human services and establish an autism unit, following mutual 4 3 planning with and consultation from the medical director of 4 4 the state psychiatric hospital, at an institution or a 4 5 facility administered by the administrator to provide 4 6 psychiatric and related services and other specific programs 4 7 to meet the needs of autistic personsas defined in section4 8331.424, subsection 1, and to furnish appropriate diagnostic 4 9 evaluation services. 4 10 Sec. 8. Section 331.301, subsection 12, Code 1995, is 4 11 amended to read as follows: 4 12 12. The board of supervisors may credit funds to a reserve 4 13 for the purposes authorized by subsection 11 of this section; 4 14 section 331.424, subsection 1, paragraph"l""f"; and section 4 15 331.441, subsection 2, paragraph "b". Moneys credited to the 4 16 reserve, and interest earned on such moneys, shall remain in 4 17 the reserve until expended for purposes authorized by 4 18 subsection 11 of this section; section 331.424, subsection 1, 4 19 paragraph"l""f"; or section 331.441, subsection 2, paragraph 4 20 "b". 4 21 Sec. 9. Section 331.424, subsection 1, Code 1995, is 4 22 amended to read as follows: 4 23 1. For general county services, an amount sufficient to 4 24 pay the charges for the following: 4 25 a. To the extent that the county is obligated by statute 4 26 to pay the charges for: 4 27(1) Care and treatment of patients by a state mental4 28health institute.4 29(2) Care and treatment of patients by either of the state4 30hospital-schools or by any other facility established under4 31chapter 222 and diagnostic evaluation under section 222.31.4 32(3) Care and treatment of patients under chapter 225.4 33(4)(1) Care and treatment of persons at the alcoholic 4 34 treatment center at Oakdale. However, the county may require 4 35 that an admission to the center shall be reported to the board 5 1 by the center within five days as a condition of the payment 5 2 of county funds for that admission. 5 3(5)(2) Care of children admitted or committed to the Iowa 5 4 juvenile home at Toledo. 5 5(6)(3) Clothing, transportation, medical, or other 5 6 services provided persons attending the Iowa braille and sight 5 7 saving school, the Iowa school for the deaf, or the state 5 8 hospital-school for severely handicapped children at Iowa 5 9 City, for which the county becomes obligated to pay pursuant 5 10 to sections 263.12, 269.2, and 270.4 through 270.7. 5 11b. To the extent that the board deems it advisable to pay,5 12the charges for professional evaluation, treatment, training,5 13habilitation, and care of persons who are mentally retarded,5 14autistic persons, or persons who are afflicted by any other5 15developmental disability, at a suitable public or private5 16facility providing inpatient or outpatient care in the county.5 17As used in this paragraph:5 18(1) "Developmental disability" has the meaning assigned5 19that term by 42 U.S.C. sec. 6001(7) (1976), Supp. II, 1978,5 20and Supp. III, 1979.5 21(2) "Autistic persons" means persons, regardless of age,5 22with severe communication and behavior disorders that became5 23manifest during the early stages of childhood development and5 24that are characterized by a severely disabling inability to5 25understand, communicate, learn, and participate in social5 26relationships. "Autistic persons" includes but is not limited5 27to those persons afflicted by infantile autism, profound5 28aphasia, and childhood psychosis.5 29c. Care and treatment of persons placed in the county5 30hospital, county care facility, a health care facility as5 31defined in section 135C.1, subsection 6, or any other public5 32or private facility, which placement is in lieu of admission5 33or commitment to or is upon discharge, removal, or transfer5 34from a state mental health institute, hospital-school, or5 35other facility established pursuant to chapter 222.6 1d. Amounts budgeted by the board for the cost of6 2establishment and initial operation of a community mental6 3health center in the manner and subject to the limitations6 4provided by state law.6 5e.b. Foster care and related services provided under 6 6 court order to a child who is under the jurisdiction of the 6 7 juvenile court, including court-ordered costs for a guardian 6 8 ad litem under section 232.71. 6 9f. The care, admission, commitment, and transportation of6 10mentally ill patients in state hospitals, to the extent that6 11expenses for these services are required to be paid by the6 12county, including compensation for the advocate appointed6 13under section 229.19.6 14g. Amounts budgeted by the board for mental health6 15services or mental retardation services furnished to persons6 16on either an outpatient or inpatient basis, to a school or6 17other public agency, or to the community at large, by a6 18community mental health center or other suitable facility6 19located in or reasonably near the county, provided that6 20services meet the standards of the mental health and6 21developmental disabilities commission created in section6 22225C.5 and are consistent with the annual plan for services6 23approved by the board.6 24h. Reimbursement on behalf of mentally retarded persons6 25under section 249A.12.6 26i.c. Elections, and voter registration pursuant to 6 27 chapter 48A. 6 28j.d. Employee benefits under chapters 96, 97B, and 97C, 6 29 which are associated with salaries for general county 6 30 services. 6 31k.e. Joint county and city building authorities 6 32 established under section 346.27, as provided in subsection 22 6 33 of that section. 6 34l.f. Tort liability insurance, property insurance, and 6 35 any other insurance that may be necessary in the operation of 7 1 the county, costs of a self-insurance program, costs of a 7 2 local government risk pool, and amounts payable under any 7 3 insurance agreements to provide or procure such insurance, 7 4 self-insurance program, or local government risk pool. 7 5m.g. The maintenance and operation of the courts, 7 6 including but not limited to the salary and expenses of the 7 7 clerk of the district court and other employees of the clerk's 7 8 office, and bailiffs, court costs if the prosecution fails or 7 9 if the costs cannot be collected from the person liable, costs 7 10 and expenses of prosecution under section 189A.17, salaries 7 11 and expenses of juvenile court officers under chapter 602, 7 12 court-ordered costs in domestic abuse cases under section 7 13 236.5, the county's expense for confinement of prisoners under 7 14 chapter 356A, temporary assistance to the county attorney, 7 15 county contributions to a retirement system for bailiffs, 7 16 reimbursement for judicial magistrates under section 602.6501, 7 17 claims filed under section 622.93, interpreters' fees under 7 18 section 622B.7, uniform citation and complaint supplies under 7 19 section 805.6, and costs of prosecution under section 815.13. 7 20n.h. Court-ordered costs of conciliation procedures under 7 21 section 598.16. 7 22o.i. Establishment and maintenance of a joint county 7 23 indigent defense fund pursuant to an agreement under section 7 24 28E.19. 7 25p.j. The maintenance and operation of a local emergency 7 26 management agency established pursuant to chapter 29C. 7 27 The board may require a public or private facility, as a 7 28 condition of receiving payment from county funds for services 7 29 it has provided, to furnish the board with a statement of the 7 30 income, assets, and legal residence including township and 7 31 county of each person who has received services from that 7 32 facility for which payment has been made from county funds 7 33 under paragraphs "a"through "h"and "b". However, the 7 34 facility shall not disclose to anyone the name or street or 7 35 route address of a person receiving services for which 8 1 commitment is not required, without first obtaining that 8 2 person's written permission. 8 3 Parents or other persons may voluntarily reimburse the 8 4 county or state for the reasonable cost of caring for a 8 5 patient or an inmate in a county or state facility. 8 6 Sec. 10. NEW SECTION. 331.424A COUNTY MENTAL HEALTH, 8 7 MENTAL RETARDATION, AND DEVELOPMENTAL DISABILITIES SERVICES 8 8 FUND. 8 9 1. For the purposes of this chapter, unless the context 8 10 otherwise requires, "services fund" means the county mental 8 11 health, mental retardation, and developmental disabilities 8 12 services fund created in subsection 2. The county finance 8 13 committee created in section 333A.2 shall consult with the 8 14 state-county management committee in adopting rules and 8 15 prescribing forms for administering the services fund. 8 16 2. For the fiscal year beginning July 1, 1996, and 8 17 succeeding fiscal years, county revenues from taxes and other 8 18 sources designated for mental health, mental retardation, and 8 19 developmental disabilities services shall be credited to the 8 20 mental health, mental retardation, and developmental 8 21 disabilities services fund of the county. The board shall 8 22 make appropriations from the fund for payment of services 8 23 provided under the county management plan approved pursuant to 8 24 section 331.439. 8 25 3. For the fiscal year beginning July 1, 1996, and 8 26 succeeding fiscal years, receipts from the state or federal 8 27 government for such services shall be credited to the services 8 28 fund, including moneys allotted to the county from the state 8 29 payment made pursuant to section 331.439 and moneys allotted 8 30 to the county for property tax relief pursuant to section 8 31 426B.1. 8 32 4. For the fiscal year beginning July 1, 1996, and for 8 33 each subsequent fiscal year, the county shall certify a levy 8 34 for payment of services. Unless otherwise provided by state 8 35 law, for each fiscal year, county revenues from taxes imposed 9 1 by the county credited to the services fund shall not exceed 9 2 an amount equal to the amount of base year expenditures for 9 3 services in the fiscal year beginning July 1, 1993, and ending 9 4 June 30, 1994, as defined in section 331.438 less the amount 9 5 of property tax relief to be received pursuant to section 9 6 426B.2, subsections 1 and 3, in the fiscal year for which the 9 7 budget is certified. The county auditor and the board of 9 8 supervisors shall reduce the amount of the levy certified for 9 9 the services fund by the amount of property tax relief to be 9 10 received. 9 11 5. Appropriations specifically authorized to be made from 9 12 the mental health, mental retardation, and developmental 9 13 disabilities services fund shall not be made from any other 9 14 fund of the county. 9 15 Sec. 11. Section 444.25A, subsection 3, paragraph b, 9 16 subparagraph (3), Code 1995, is amended to read as follows: 9 17 (3) Need for additional moneys for health care, treatment, 9 18 and facilities, includingmental health and mental retardation9 19care andtreatment pursuant to section 331.424, subsection 1, 9 20 paragraphs "a"through "h"and "b". 9 21 Sec. 12. EFFECTIVE AND APPLICABILITY DATES. This division 9 22 of this Act takes effect January 1, 1996, and is applicable to 9 23 taxes payable in the fiscal year beginning July 1, 1996, and 9 24 subsequent fiscal years. 9 25 DIVISION III 9 26 PROPERTY TAX RELIEF PROVISIONS 9 27 Sec. 13. Section 222.60, unnumbered paragraph 1, Code 9 28 1995, as amended by 1995 Iowa Acts, House File 483, section 9 29 12, is amended to read as follows: 9 30 All necessary and legal expenses for the cost of admission 9 31 or commitment or for the treatment, training, instruction, 9 32 care, habilitation, support and transportation of persons with 9 33 mental retardation, as provided for in the county management 9 34 plan provisions implemented pursuant to section 331.439, 9 35 subsection 1, in a state hospital-school, or in a special 10 1 unit, or any public or private facility within or without the 10 2 state, approved by the director of the department of human 10 3 services, shall be paid by either: 10 4 Sec. 14. Section 331.438, subsection 1, paragraph b, Code 10 5 1995, is amended to read as follows: 10 6 b. "State payment" means the payment made by the state to 10 7 a county determined to be eligible for the payment in 10 8 accordance with section 331.439. 10 9 1A. Except as modified based upon the actual amount of the 10 10 appropriation for purposes of state payment under section 10 11 331.439, the amount of the state payment for a fiscal year 10 12 shall be calculatedas fifty percent of the amount by which10 13the county's qualified expenditures during the immediately10 14preceding fiscal year were in excess of the amount of the10 15county's base year expendituresby applying the inflation 10 16 factor adjustment established in accordance with section 10 17 331.439, subsection 3, for that fiscal year to the amount of 10 18 county expenditures for qualified services in the previous 10 19 fiscal year. A state payment is the state funding a county 10 20 receives pursuant to section 426B.2, subsection 2. Any state 10 21 funding received by a county for property tax relief in 10 22 accordance with section 426B.2, subsections 1 and 3, is not a 10 23 state payment and shall not be included in the state payment 10 24 calculation made pursuant to this subsection. 10 25 Sec. 15. Section 331.439, Code 1995, is amended by 10 26 striking the section and inserting in lieu thereof the 10 27 following: 10 28 331.439 ELIGIBILITY FOR STATE PAYMENT. 10 29 1. The state payment to eligible counties under this 10 30 section shall be made as provided in sections 331.438 and 10 31 426B.2. A county is eligible for the state payment, as 10 32 defined in section 331.438, for the fiscal year beginning July 10 33 1, 1996, and for subsequent fiscal years if the director of 10 34 human services, in consultation with the state-county 10 35 management committee, determines for a specific fiscal year 11 1 that all of the following conditions are met: 11 2 a. The county accurately reported by October 15 the 11 3 county's expenditures for mental health, mental retardation, 11 4 and developmental disabilities services for the previous 11 5 fiscal year on forms prescribed by the department of human 11 6 services. 11 7 b. The county developed and implemented a county 11 8 management plan for the county's mental health, mental 11 9 retardation, and developmental disabilities services in 11 10 accordance with the provisions of this paragraph. The plan 11 11 shall comply with the administrative rules adopted for this 11 12 purpose by the council on human services and is subject to the 11 13 approval of the director of human services in consultation 11 14 with the state-county management committee created in section 11 15 331.438. The plan shall include a description of the county's 11 16 service management provision for mental health, mental 11 17 retardation, and developmental disabilities services. For 11 18 mental retardation and developmental disabilities service 11 19 management, the plan shall describe the county's development 11 20 and implementation of a managed system of cost-effective 11 21 individualized services and shall comply with the provisions 11 22 of paragraph "d". The goal of this part of the plan shall be 11 23 to assist the individuals served to be as independent, 11 24 productive, and integrated into the community as possible. 11 25 The service management provisions for mental health shall 11 26 comply with the provisions of paragraph "c". 11 27 c. (1) For mental health service management, the county 11 28 may either directly implement a system of service management 11 29 and contract with service providers, or contract with a 11 30 private entity to manage the system, provided all requirements 11 31 of this lettered paragraph are met by the private entity. The 11 32 mental health service management shall incorporate a single 11 33 entry point and clinical assessment process developed in 11 34 accordance with the provisions of section 331.440. The county 11 35 shall submit this part of the plan to the department of human 12 1 services for approval by April 1 for the succeeding year. 12 2 Initially, this part of the plan shall be submitted to the 12 3 department by April 1, 1996, and the county shall implement 12 4 the approved plan by July 1, 1996. 12 5 (2) The basis for determining whether a managed care 12 6 system for mental health proposed by a county is comparable to 12 7 a mental health managed care contractor approved by the 12 8 department of human services shall include but is not limited 12 9 to all of the following elements which shall be specified in 12 10 administrative rules adopted by the council on human services 12 11 in consultation with the state-county management committee: 12 12 (a) The enrollment and eligibility process. 12 13 (b) The scope of services included. 12 14 (c) The method of plan administration. 12 15 (d) The process for managing utilization and access to 12 16 services and other assistance. 12 17 (e) The quality assurance process. 12 18 (f) The risk management provisions and fiscal viability of 12 19 the provisions, if the county contracts with a private managed 12 20 care entity. 12 21 d. For mental retardation and developmental disabilities 12 22 services management, the county must either develop and 12 23 implement a managed system of care which addresses a full 12 24 array of appropriate services and cost-effective delivery of 12 25 services or contract with a state-approved managed care 12 26 contractor or contractors. Any system or contract implemented 12 27 under this paragraph shall incorporate a single entry point 12 28 and clinical assessment process developed in accordance with 12 29 the provisions of section 331.440. The elements of the 12 30 managed system of care and the state-approved managed care 12 31 contract or contracts shall be specified in rules developed by 12 32 the department of human services in consultation with the 12 33 state-county management committee and adopted by the council 12 34 on human services. Initially, this part of the plan shall be 12 35 submitted to the department for approval on or before October 13 1 1, 1996, and shall be implemented on or before January 1, 13 2 1997. In fiscal years succeeding the fiscal year of initial 13 3 implementation, this part of the plan shall be submitted to 13 4 the department of human services for approval by April 1 for 13 5 the succeeding fiscal year. 13 6 e. Changes to the approved plan are submitted at least 13 7 sixty days prior to the proposed change and are not to be 13 8 implemented prior to the director of human services' approval. 13 9 2. The county management plan shall address the county's 13 10 criteria for serving persons with chronic mental illness, 13 11 including any rationale used for decision making regarding 13 12 this population. 13 13 3. a. For the fiscal year beginning July 1, 1996, and 13 14 succeeding fiscal years, the county's mental health, mental 13 15 retardation, and developmental disabilities service 13 16 expenditures for a fiscal year are limited to a fixed budget 13 17 amount. The fixed budget amount shall be the amount 13 18 identified in the county's management plan and budget for the 13 19 fiscal year. The county shall be allowed an inflation factor 13 20 adjustment for services paid from the county's services fund 13 21 under section 331.424A which is in accordance with the 13 22 county's management plan and budget, implemented pursuant to 13 23 this section. 13 24 b. Based upon information contained in county management 13 25 plans and budgets, the state-county management committee shall 13 26 recommend an inflation factor adjustment to the council on 13 27 human services by November 15 for the succeeding fiscal year. 13 28 The inflation factor adjustment shall address costs associated 13 29 with new consumers of service, service cost inflation, and 13 30 investments for economy and efficiency. The council on human 13 31 services shall recommend to the governor the amount of the 13 32 inflation factor adjustment for the succeeding fiscal year for 13 33 inclusion in the governor's proposed budget for the succeeding 13 34 fiscal year. 13 35 c. If the general assembly has not revised the amount of 14 1 the inflation factor adjustment for a fiscal year on the date 14 2 county budgets must be approved and levies must be certified 14 3 for that fiscal year, the budgets and levies shall utilize the 14 4 inflation factor adjustment for that fiscal year recommended 14 5 by the governor in the governor's proposed budget. 14 6 4. A county may provide assistance to service populations 14 7 with disabilities to which the county has historically 14 8 provided assistance but who are not included in the service 14 9 management provisions required under subsection 1, subject to 14 10 the availability of funding. 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 15 26 succeeding 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 developmental 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 20 1 Sec. 26. Section 444.25A, subsection 1, Code 1995, is 20 2 amended to read as follows: 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, 1995, 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, 1994, minus 20 8 the amount of property tax relief moneys to be received by the 20 9 county for the fiscal year beginning July 1, 1995, pursuant to 20 10 section 426B.2, subsection 1, and the maximum amount of 20 11 property tax dollars which may be certified by a county for 20 12 taxes payable in the fiscal year beginning July 1, 1996, shall 20 13 not exceed the amount of property tax dollars certified by the 20 14 county for taxes payable in the fiscal year beginning July 1, 20 15 1995, minus the amount by which the property tax relief moneys 20 16 to be received by the county in the fiscal year beginning July 20 17 1, 1996, pursuant to section 426B.2, subsections 1 and 3, 20 18 exceeds the amount of the property tax relief moneys received 20 19 in the fiscal year beginning July 1, 1995, for each of the 20 20 levies for the following, except for the levies on the 20 21 increase in taxable valuation due to new construction, 20 22 additions or improvements to existing structures, remodeling 20 23 of existing structures for which a building permit is 20 24 required, annexation, and phasing out of tax exemptions, and 20 25 on the increase in valuation of taxable property as a result 20 26 of a comprehensive revaluation by a private appraiser under a 20 27 contract entered into prior to January 1, 1992, or as a result 20 28 of a comprehensive revaluation directed or authorized by the 20 29 conference board prior to January 1, 1992, with documentation 20 30 of the contract, authorization, or directive on the 20 31 revaluation provided to the director of revenue and finance, 20 32 if the levies are equal to or less than the levies for the 20 33 previous year, levies on that portion of the taxable property 20 34 located in an urban renewal project the tax revenues from 20 35 which are no longer divided as provided in section 403.19, 21 1 subsection 2, or as otherwise provided in this section: 21 2 a. General county services under section 331.422, 21 3 subsection 1. 21 4 b. Rural county services under section 331.422, subsection 21 5 2. 21 6 c. Other taxes under section 331.422, subsection 4. 21 7 Sec. 27. NEW SECTION. 444.25B PROPERTY TAX LIMITATION 21 8 FOR FISCAL YEAR 1998. 21 9 1. COUNTY LIMITATION. The maximum amount of property tax 21 10 dollars which may be certified by a county for taxes payable 21 11 in the fiscal year beginning July 1, 1997, shall not exceed 21 12 the amount of property tax dollars certified by the county for 21 13 taxes payable in the fiscal year beginning July 1, 1996, minus 21 14 the amount by which the property tax relief moneys to be 21 15 received by the county in the fiscal year beginning July 1, 21 16 1997, pursuant to section 426B.2, subsections 1 and 3, exceeds 21 17 the amount of the property tax relief moneys received in the 21 18 fiscal year beginning July 1, 1996, for each of the levies for 21 19 the following, except for the levies on the increase in 21 20 taxable valuation due to new construction, additions or 21 21 improvements to existing structures, remodeling of existing 21 22 structures for which a building permit is required, 21 23 annexation, and phasing out of tax exemptions, and on the 21 24 increase in valuation of taxable property as a result of a 21 25 comprehensive revaluation by a private appraiser under a 21 26 contract entered into prior to January 1, 1992, or as a result 21 27 of a comprehensive revaluation directed or authorized by the 21 28 conference board prior to January 1, 1992, with documentation 21 29 of the contract, authorization, or directive on the 21 30 revaluation provided to the director of revenue and finance, 21 31 if the levies are equal to or less than the levies for the 21 32 previous year, levies on that portion of the taxable property 21 33 located in an urban renewal project the tax revenues from 21 34 which are no longer divided as provided in section 403.19, 21 35 subsection 2, or as otherwise provided in this section: 22 1 a. General county services under section 331.422, 22 2 subsection 1. 22 3 b. Rural county services under section 331.422, subsection 22 4 2. 22 5 c. Other taxes under section 331.422, subsection 4. 22 6 2. EXCEPTIONS. The limitations provided in subsection 1 22 7 do not apply to the levies made for the following: 22 8 a. Debt service to be deposited into the debt service fund 22 9 pursuant to section 331.430. 22 10 b. Taxes approved by a vote of the people which are 22 11 payable during the fiscal year beginning July 1, 1997. 22 12 c. Hospitals pursuant to chapters 37, 347, and 347A. 22 13 d. Emergency management to be deposited into the local 22 14 emergency management fund and expended for development of 22 15 hazardous substance teams pursuant to chapter 29C. 22 16 e. Unusual need for additional moneys to finance existing 22 17 programs which would provide substantial benefit to county 22 18 residents or compelling need to finance new programs which 22 19 would provide substantial benefit to county residents. The 22 20 increase in taxes levied under this exception for the fiscal 22 21 year beginning July 1, 1997, is limited to no more than the 22 22 product of the total tax dollars levied in the fiscal year 22 23 beginning July 1, 1996, and the percent change, computed to 22 24 two decimal places, in the price index for government 22 25 purchases by type for state and local governments computed for 22 26 the third quarter of calendar year 1996 from that computed for 22 27 the third quarter of calendar year 1995. 22 28 For purposes of this paragraph, the price index for 22 29 government purchases by type for state and local governments 22 30 is defined by the bureau of economic analysis of the United 22 31 States department of commerce and published in table 7.11 of 22 32 the national income and products accounts. For the fiscal 22 33 year beginning July 1, 1997, the price index used shall be the 22 34 revision published in the November 1996 edition of the United 22 35 States department of commerce publication, "survey of current 23 1 business". For purposes of this paragraph, tax dollars levied 23 2 in the fiscal year beginning July 1, 1996, shall not include 23 3 funds levied for paragraphs "a", "b", and "c" of this 23 4 subsection. 23 5 Application of this exception shall require an original 23 6 publication of the budget and a public hearing and a second 23 7 publication and a second hearing both in the manner and form 23 8 prescribed by the director of the department of management, 23 9 notwithstanding the provisions of section 331.434. The 23 10 publications and hearings prescribed in this paragraph shall 23 11 be held and the budget certified no later than March 15. The 23 12 taxes levied for counties whose budgets are certified after 23 13 March 15, 1997, shall be frozen at the fiscal year beginning 23 14 July 1, 1996, level. 23 15 3. APPEAL PROCEDURES. In lieu of the procedures in 23 16 sections 24.48 and 331.426, which procedures do not apply for 23 17 taxes payable in the fiscal year beginning July 1, 1997, if a 23 18 county needs to raise property tax dollars from a tax levy in 23 19 excess of the limitations imposed by subsection 1, the 23 20 following procedures apply: 23 21 a. Not later than March 1, and after the publication and 23 22 public hearing on the budget in the manner and form prescribed 23 23 by the director of the department of management, 23 24 notwithstanding section 331.434, the county shall petition the 23 25 state appeal board for approval of a property tax increase in 23 26 excess of the increase provided for in subsection 2, paragraph 23 27 "e", on forms furnished by the director of the department of 23 28 management. Applications received after March 1 shall be 23 29 automatically ineligible for consideration by the board. 23 30 b. Additional costs incurred by the county due to any of 23 31 the following circumstances shall be the basis for justifying 23 32 the excess in property tax dollars: 23 33 (1) Natural disaster or other life-threatening 23 34 emergencies. 23 35 (2) Unusual need for additional moneys to finance existing 24 1 programs which would provide substantial benefit to county 24 2 residents or compelling need to finance new programs which 24 3 would provide substantial benefit to county residents. 24 4 (3) Need for additional moneys for health care, treatment, 24 5 and facilities pursuant to section 331.424, subsection 1, 24 6 paragraphs "a" and "b". 24 7 (4) Judgments, settlements, and related costs arising out 24 8 of civil claims against the county and its officers, 24 9 employees, and agents, as defined in chapter 670. 24 10 c. The state appeal board shall approve, disapprove, or 24 11 reduce the amount of excess property tax dollars requested. 24 12 The board shall take into account the intent of this section 24 13 to provide property tax relief. The decision of the board 24 14 shall be rendered at a regular or special meeting of the board 24 15 within twenty days of the board's receipt of an appeal. 24 16 d. Within seven days of receipt of the decision of the 24 17 state appeal board, the county shall adopt and certify its 24 18 budget under section 331.434, which budget may be protested as 24 19 provided in section 331.436. The budget shall not contain an 24 20 amount of property tax dollars in excess of the amount 24 21 approved by the state appeal board. 24 22 4. Rate adjustment by county auditor. In addition to the 24 23 requirement of the county auditor in section 444.3 to 24 24 establish a rate of tax which does not exceed the rate 24 25 authorized by law, the county auditor shall also adjust the 24 26 rate if the amount of property tax dollars to be raised is in 24 27 excess of the amount specified in subsection 1, as may be 24 28 adjusted pursuant to subsection 3. 24 29 Sec. 28. Section 444.27, Code 1995, is amended to read as 24 30 follows: 24 31 444.27 SECTIONS VOID. 24 32 1. For purposes of section 444.25, sections 24.48 and 24 33 331.426 are void for the fiscal years beginning July 1, 1993, 24 34 and July 1, 1994. For purposes of section 444.25A, sections 24 35 24.48 and 331.426 are void for the fiscal years beginning July 25 1 1, 1995, and July 1, 1996. 25 2 2. For purposes of section 444.25B, sections 24.48 and 25 3 331.426 are void for the fiscal year beginning July 1, 1997. 25 4 DIVISION V 25 5 INDUSTRIAL MACHINERY, EQUIPMENT AND COMPUTERS PROPERTY 25 6 TAX 25 7 EXEMPTION AND REPLACEMENT 25 8 Sec. 29. Section 427B.17, Code 1995, is amended to read as 25 9 follows: 25 10 427B.17 PROPERTY SUBJECT TO SPECIAL VALUATION. 25 11 1. For property defined in section 427A.1, subsection 1, 25 12 paragraphs "e" and "j", acquired or initially leased on or 25 13 after January 1, 1982, the taxpayer's valuation shall be 25 14 limited to thirty percent of the net acquisition cost of the 25 15 property, except as otherwise provided in subsections 2 and 3. 25 16 For purposes of this section, "net acquisition cost" means the 25 17 acquired cost of the property including all foundations and 25 18 installation cost less any excess cost adjustment. 25 19 For purposes of thissectionsubsection: 25 201. Property assessed by the department of revenue and25 21finance pursuant to sections 428.24 to 428.29, or chapters25 22433, 434 and 436 to 438 shall not receive the benefits of this25 23section.25 242.a. Property acquired before January 1, 1982, which was 25 25 owned or used before January 1, 1982, by a related person 25 26 shall not receive the benefits of thissectionsubsection. 25 273.b. Property acquired on or after January 1, 1982, which 25 28 was owned and used by a related person shall not receive any 25 29 additional benefits under thissectionsubsection. 25 304.c. Property which was owned or used before January 1, 25 31 1982, and subsequently acquired by an exchange of like 25 32 property shall not receive the benefits of thissection25 33 subsection. 25 345.d. Property which was acquired on or after January 1, 25 35 1982, and subsequently exchanged for like property shall not 26 1 receive any additional benefits under thissectionsubsection. 26 26.e. Property acquired before January 1, 1982, which is 26 3 subsequently leased to a taxpayer or related person who 26 4 previously owned the property shall not receive the benefits 26 5 of thissectionsubsection. 26 67.f. Property acquired on or after January 1, 1982, which 26 7 is subsequently leased to a taxpayer or related person who 26 8 previously owned the property shall not receive any additional 26 9 benefits under thissectionsubsection. 26 10 For purposes of thissectionsubsection, "related person" 26 11 means a person who owns or controls the taxpayer's business 26 12 and another business entity from which property is acquired or 26 13 leased or to which property is sold or leased. Business 26 14 entities are owned or controlled by the same person if the 26 15 same person directly or indirectly owns or controls fifty 26 16 percent or more of the assets or any class of stock or who 26 17 directly or indirectly has an interest of fifty percent or 26 18 more in the ownership or profits. 26 19 2. Property defined in section 427A.1, subsection 1, 26 20 paragraphs "e" and "j", which is first assessed for taxation 26 21 in this state on or after January 1, 1995, shall be exempt 26 22 from taxation. 26 23 3. Property defined in section 427A.1, subsection 1, 26 24 paragraphs "e" and "j", and assessed under section 427B.17, 26 25 subsection 1, shall be valued by the local assessor as follows 26 26 for the following assessment years: 26 27 a. For the assessment year beginning January 1, 1999, at 26 28 twenty-two percent of the net acquisition cost. 26 29 b. For the assessment year beginning January 1, 2000, at 26 30 fourteen percent of the net acquisition cost. 26 31 c. For the assessment year beginning January 1, 2001, at 26 32 six percent of the net acquisition cost. 26 33 d. For the assessment year beginning January 1, 2002, and 26 34 succeeding assessment years, at zero percent of the net 26 35 acquisition cost. 27 1 4. Property assessed pursuant to this section shall not be 27 2 eligible to receive a partial exemption under sections 427B.1 27 3 to 427B.6. 27 4 5. This section shall not apply to property assessed by 27 5 the department of revenue and finance pursuant to sections 27 6 428.24 to 428.29, or chapters 433, 434, and 436 to 438, and 27 7 such property shall not receive the benefits of this section. 27 8 Any electric power generating plant which operated during 27 9 the preceding assessment year at a net capacity factor of more 27 10 than twenty percent, shall not receive the benefits of this 27 11 section or of sections 15.332 and 15.334. For purposes of 27 12 this section, "electric power generating plant" means any name 27 13 plate rated electric power generating plant, in which electric 27 14 energy is produced from other forms of energy, including all 27 15 taxable land, buildings, and equipment used in the production 27 16 of such energy. "Net capacity factor" means net actual 27 17 generation divided by the product of net maximum capacity 27 18 times the number of hours the unit was in the active state 27 19 during the assessment year. Upon commissioning, a unit is in 27 20 the active state until it is decommissioned. "Net actual 27 21 generation" means net electrical megawatt hours produced by 27 22 the unit during the preceding assessment year. "Net maximum 27 23 capacity" means the capacity the unit can sustain over a 27 24 specified period when not restricted by ambient conditions or 27 25 equipment deratings, minus the losses associated with station 27 26 service or auxiliary loads. 27 27 6. The taxpayer's valuation of property defined in section 27 28 427A.1, subsection 1, paragraphs "e" and "j", and located in 27 29 an urban renewal area for which an urban renewal plan provides 27 30 for the division of taxes as provided in section 403.19 to pay 27 31 the principal and interest on loans, advances, bonds issued 27 32 under the authority of section 403.9, subsection 1, or 27 33 indebtedness incurred by a city or county to finance an urban 27 34 renewal project within the urban renewal area, if such loans, 27 35 advances, or bonds were issued or indebtedness incurred, on or 28 1 after January 1, 1982, and on or before June 30, 1995, shall 28 2 be limited to thirty percent of the net acquisition cost of 28 3 the property. Such property located in an urban renewal area 28 4 shall not be valued pursuant to subsection 2 or 3, whichever 28 5 is applicable, until the assessment year following the 28 6 calendar year in which the obligations created by any loans, 28 7 advances, bonds, or indebtedness payable from the division of 28 8 taxes as provided in section 403.19 have been retired. The 28 9 taxpayer's valuation for such property shall then be the 28 10 valuation specified in subsection 2 or 3, whichever is 28 11 applicable, for the applicable assessment year. If the loans, 28 12 advances, or bonds issued, or indebtedness incurred between 28 13 January 1, 1982, and June 30, 1995, are refinanced or refunded 28 14 after June 30, 1995, the valuation of such property shall then 28 15 be the valuation specified in subsection 2 or 3, whichever is 28 16 applicable, for the applicable assessment year beginning with 28 17 the assessment year following the calendar year in which any 28 18 of those loans, advances, bonds, or other indebtedness are 28 19 refinanced or refunded after June 30, 1995. 28 20 7. For the purpose of dividing taxes under section 260E.4 28 21 or 260F.4, the employer's or business's valuation of property 28 22 defined in section 427A.1, subsection 1, paragraphs "e" and 28 23 "j", and used to fund a new jobs training project which 28 24 project's first written agreement providing for a division of 28 25 taxes as provided in section 403.19 is approved on or before 28 26 June 30, 1995, shall be limited to thirty percent of the net 28 27 acquisition cost of the property. An employer's or business's 28 28 taxable property used to fund a new jobs training project 28 29 shall not be valued pursuant to subsection 2 or 3, whichever 28 30 is applicable, until the assessment year following the 28 31 calendar year in which the certificates or other funding 28 32 obligations have been retired or escrowed. The taxpayer's 28 33 valuation for such property shall then be the valuation 28 34 specified in subsection 1 for the applicable assessment year. 28 35 If the certificates issued, or other funding obligations 29 1 incurred, between January 1, 1982, and June 30, 1995, are 29 2 refinanced or refunded after June 30, 1995, the valuation of 29 3 such property shall then be the valuation specified in 29 4 subsection 2 or 3, whichever is applicable, for the applicable 29 5 assessment year beginning with the assessment year following 29 6 the calendar year in which those certificates or other funding 29 7 obligations are refinanced or refunded after June 30, 1995. 29 8 Sec. 30. NEW SECTION. 427B.18 REPLACEMENT. 29 9 Beginning with the fiscal year beginning July 1, 1996, each 29 10 county treasurer shall be paid from the industrial machinery, 29 11 equipment and computers replacement fund an amount equal to 29 12 the amount of the industrial machinery, equipment and 29 13 computers tax replacement claim, as calculated in section 29 14 427B.19. 29 15 Sec. 31. NEW SECTION. 427B.19 ASSESSOR AND COUNTY 29 16 AUDITOR DUTIES. 29 17 1. On or before July 1 of each fiscal year, the assessor 29 18 shall determine the total assessed value of the property 29 19 assessed under section 427B.17 for taxes payable in that 29 20 fiscal year and the total assessed value of such property 29 21 assessed as of January 1, 1994, and shall report the 29 22 valuations to the county auditor. 29 23 2. On or before July 1 of each fiscal year, the assessor 29 24 shall determine the valuation of all commercial and industrial 29 25 property assessed for taxes payable in that fiscal year and 29 26 the valuation of such property assessed as of January 1, 1994, 29 27 and shall report the valuations to the county auditor. 29 28 3. On or before July 1, 1996, and on or before July 1 of 29 29 each succeeding fiscal year through June 30, 2006, the county 29 30 auditor shall prepare a statement, based upon the report 29 31 received pursuant to subsections 1 and 2, listing for each 29 32 taxing district in the county: 29 33 a. Beginning with the assessment year beginning January 1, 29 34 1995, the difference between the assessed valuation of 29 35 property assessed pursuant to section 427B.17 for that year 30 1 and the total assessed value of such property assessed as of 30 2 January 1, 1994. If the total assessed value of the property 30 3 assessed as of January 1, 1994, is less, there is no tax 30 4 replacement for the fiscal year. 30 5 b. The tax levy rate for each taxing district for that 30 6 fiscal year. 30 7 c. The industrial machinery, equipment and computers tax 30 8 replacement claim for each taxing district. For fiscal years 30 9 beginning July 1, 1996, and ending June 30, 2001, the 30 10 replacement claim is equal to the amount determined pursuant 30 11 to paragraph "a", multiplied by the tax rate specified in 30 12 paragraph "b". For fiscal years beginning July 1, 2001, and 30 13 ending June 30, 2006, the replacement claim is equal to the 30 14 product of the amount determined pursuant to paragraph "a", 30 15 less any increase in valuations determined in paragraph "d", 30 16 and the tax rate specified in paragraph "b". If the amount 30 17 subtracted under paragraph "d" is more than the amount 30 18 determined in paragraph "a", there is no tax replacement for 30 19 the fiscal year. 30 20 d. Beginning with the assessment year beginning January 1, 30 21 2000, the auditor shall reduce the amount listed in paragraph 30 22 "a", by the increase, if any, in assessed valuations of 30 23 commercial and industrial property in the assessment year 30 24 beginning January 1, 1994, and the assessment year for which 30 25 taxes are due and payable in that fiscal year. If the 30 26 calculation under this paragraph indicates a net decrease in 30 27 aggregate valuation of such property, the industrial 30 28 machinery, equipment and computers tax replacement claim for 30 29 each taxing district is equal to the amount determined 30 30 pursuant to paragraph "a", multiplied by the tax rate 30 31 specified in paragraph "b". 30 32 4. The county auditor shall certify and forward one copy 30 33 of the statement to the department of revenue and finance not 30 34 later than July 1 of each year. 30 35 Sec. 32. NEW SECTION. 427B.19A FUND CREATED. 31 1 1. The industrial machinery, equipment and computers 31 2 property tax replacement fund is created. For the fiscal year 31 3 beginning July 1, 1996, through the fiscal year ending June 31 4 30, 2006, there is appropriated annually from the general fund 31 5 of the state to the department of revenue and finance to be 31 6 credited to the industrial machinery, equipment and computers 31 7 property tax replacement fund, an amount sufficient to 31 8 implement this division. 31 9 2. If an amount appropriated for a fiscal year is 31 10 insufficient to pay all claims, the director shall prorate the 31 11 disbursements from the fund to the county treasurers and shall 31 12 notify the county auditors of the pro rata percentage on or 31 13 before August 1. 31 14 3. The replacement claims shall be paid to each county 31 15 treasurer in equal installments in September and March of each 31 16 year. The county treasurer shall apportion the replacement 31 17 claim payments among the eligible taxing districts in the 31 18 county. 31 19 Sec. 33. NEW SECTION. 427B.19B GUARANTEE OF STATE 31 20 REPLACEMENT FUNDS. 31 21 For the fiscal years beginning July 1, 1996, and ending 31 22 June 30, 2006, if the industrial machinery, equipment and 31 23 computers property tax replacement fund is insufficient to pay 31 24 in full the total of the amounts certified to the director of 31 25 revenue and finance, the director shall compute for each 31 26 county the difference between the total of all replacement 31 27 claims for each taxing district within the county and the 31 28 amount paid to the county treasurer for disbursement to each 31 29 taxing district in the county. The assessor, for the 31 30 assessment year for which taxes are due and payable in the 31 31 fiscal year for which a sufficient appropriation was not made, 31 32 shall revalue all industrial machinery, equipment and 31 33 computers described in section 427B.17, subsections 2 and 3, 31 34 in the county at a percentage of net acquisition cost which 31 35 will yield from each taxing district its shortfall and the 32 1 property shall be assessed and taxed in such manner for taxes 32 2 due and payable in the following fiscal year in addition to 32 3 being assessed and taxed in the applicable manner under 32 4 section 427B.17. When conducting the revaluation, the 32 5 assessor shall increase the percentage of net acquisition cost 32 6 of such property by the same percentage point. Property tax 32 7 dollar amounts certified pursuant to this section shall not be 32 8 considered property tax dollars certified for purposes of the 32 9 property tax limitation in chapter 444. 32 10 Sec. 34. Section 257.3, subsection 1, Code 1995, is 32 11 amended by adding the following new unnumbered paragraph: 32 12 NEW UNNUMBERED PARAGRAPH. The amount paid to each school 32 13 district for the tax replacement claim for industrial 32 14 machinery, equipment and computers under section 427B.19A 32 15 shall be regarded as property tax. The portion of the payment 32 16 which is foundation property tax shall be determined by 32 17 applying the foundation property tax rate to the amount 32 18 computed under section 427B.19, subsection 3, paragraph "a", 32 19 as adjusted by paragraph "d", if any adjustment was made. 32 20 DIVISION VI 32 21 FISCAL YEAR 1996 PAYMENT 32 22 Sec. 35. FISCAL YEAR 1996 RELIEF FUND PAYMENT. 32 23 Notwithstanding 1995 Iowa Acts, House File 132, section 13, 32 24 the appropriation in that section shall not be made from the 32 25 general fund of the state but shall be made from the property 32 26 tax relief fund created in section 426B.1, as enacted by this 32 27 Act. Notwithstanding section 426B.2, subsection 2, as enacted 32 28 by this Act, for the fiscal year beginning July 1, 1995, the 32 29 amount of moneys distributed under that subsection shall be 32 30 $54.4 million. 32 31 SF 69 32 32 jp/cc/26
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