Text: HF02543 Text: HF02545 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 23A.2, subsection 10, paragraph h, Code 1 2 Supplement 1999, is amended by striking the paragraph. 1 3 Sec. 2. Section 25B.2, subsection 3, Code 1999, is amended 1 4 by striking the subsection. 1 5 Sec. 3. Section 25B.3, subsection 1, Code 1999, is amended 1 6 to read as follows: 1 7 1. "Political subdivision" means a city, county, township, 1 8 community college, area education agency, or school district. 1 9 Sec. 4. NEW SECTION. 25B.5A UNFUNDED STATE MANDATES – 1 10 EFFECT. 1 11 1. If, on or after July 1, 2000, a state mandate is 1 12 enacted by the general assembly, or otherwise imposed, on a 1 13 political subdivision and the state mandate requires a 1 14 political subdivision to engage in any new activity, to 1 15 provide a new service, or to provide any service beyond that 1 16 required by any law enacted prior to July 1, 2000, and the 1 17 state does not appropriate moneys to fully fund the cost of 1 18 the state mandate as identified pursuant to section 25B.5, 1 19 subsections 1 and 2, the political subdivision is not required 1 20 to perform the activity or provide the service and the 1 21 political subdivision shall not be subject to any liabilities 1 22 imposed by the state or the imposition of any fines or 1 23 penalties for the failure to comply with the state mandate. 1 24 However, this subsection does not apply to any requirement 1 25 imposed on a political subdivision relating to public employee 1 26 retirement systems under chapters 97B, 410, and 411 or to the 1 27 enforcement of chapter 321J or the Iowa criminal code pursuant 1 28 to chapters 701 to 728. 1 29 2. For the purposes of subsection 1, any requirement 1 30 originating from the federal government and administered, 1 31 implemented, or enacted by the state, or any allocation of 1 32 federal moneys conditioned upon the enactment of state law or 1 33 rule, is not a state mandate. 1 34 Sec. 5. Section 123.38, unnumbered paragraph 2, Code 1999, 1 35 is amended to read as follows: 2 1 Any licensee or permittee, or the licensee's or permittee's 2 2 executor or administrator, or any person duly appointed by the 2 3 court to take charge of and administer the property or assets 2 4 of the licensee or permittee for the benefit of the licensee's 2 5 or permittee's creditors, may voluntarily surrender a license 2 6 or permit to the division. When a license or permit is 2 7 surrendered the division shall notify the local authority, and 2 8 the division or the local authority shall refund to the person 2 9 surrendering the license or permit, a proportionate amount of 2 10 the fee received by the division or the local authority for 2 11 the license or permit as follows: if a license or permit is 2 12 surrendered during the first three months of the period for 2 13 which it was issued, the refund shall be three-fourths of the 2 14 amount of the fee; if surrendered more than three months but 2 15 not more than six months after issuance, the refund shall be 2 16 one-half of the amount of the fee; if surrendered more than 2 17 six months but not more than nine months after issuance, the 2 18 refund shall be one-fourth of the amount of the fee. No 2 19 refund shall be made, however, for any special liquor permit, 2 20 nor for a liquor control license, wine permit, or beer permit 2 21 surrendered more than nine months after issuance. For 2 22 purposes of this paragraph, any portion of license or permit 2 23 fees used for the purposes authorized in section331.424,2 24subsection 1, paragraphs "a" and "b", and in section331.424A,2 25 shall not be deemed received either by the division or by a 2 26 local authority. No refund shall be made to any licensee or 2 27 permittee, upon the surrender of the license or permit, if 2 28 there is at the time of surrender, a complaint filed with the 2 29 division or local authority, charging the licensee or 2 30 permittee with a violation of this chapter. If upon a hearing 2 31 on a complaint the license or permit is not revoked or 2 32 suspended, then the licensee or permittee is eligible, upon 2 33 surrender of the license or permit, to receive a refund as 2 34 provided in this section; but if the license or permit is 2 35 revoked or suspended upon hearing the licensee or permittee is 3 1 not eligible for the refund of any portion of the license or 3 2 permit fee. 3 3 Sec. 6. Section 218.99, Code 1999, is amended to read as 3 4 follows: 3 5 218.99 COUNTIES TO BE NOTIFIED OF PATIENTS' PERSONAL 3 6 ACCOUNTS. 3 7 The administrator of a division of the department of human 3 8 services in control of a state institution shall direct the 3 9 business manager of each institution under the administrator's 3 10 jurisdictionwhich is mentioned in section 331.424, subsection3 111, paragraphs "a" and "b" andfor which services are paid 3 12 under section 331.424A to quarterly inform the county of legal 3 13 settlement's entity designated to perform the county's single 3 14 entry point process of any patient or resident who has an 3 15 amount in excess of two hundred dollars on account in the 3 16 patients' personal deposit fund and the amount on deposit. 3 17 The administrators shall direct the business manager to 3 18 further notify the entity designated to perform the county's 3 19 single entry point process at least fifteen days before the 3 20 release of funds in excess of two hundred dollars or upon the 3 21 death of the patient or resident. If the patient or resident 3 22 has no county of legal settlement, notice shall be made to the 3 23 director of human services and the administrator of the 3 24 division of the department in control of the institution 3 25 involved. 3 26 Sec. 7. Section 331.301, subsection 12, Code Supplement 3 27 1999, is amended to read as follows: 3 28 12. The board of supervisors may credit funds to a reserve 3 29 for the purposes authorized by subsection 11 of this section;3 30section 331.424, subsection 1, paragraph "f";and section 3 31 331.441, subsection 2, paragraph "b". Moneys credited to the 3 32 reserve, and interest earned on such moneys, shall remain in 3 33 the reserve until expended for purposes authorized by 3 34 subsection 11 of this section; section 331.424, subsection 1,3 35paragraph "f";or section 331.441, subsection 2, paragraph 4 1 "b". 4 2 Sec. 8. Section 331.325, Code 1999, is amended to read as 4 3 follows: 4 4 331.325 CONTROL AND MAINTENANCE OF PIONEER CEMETERIES – 4 5 CEMETERY COMMISSION. 4 6 1. As used in this section, "pioneer cemetery" means a 4 7 cemetery where there have been six or fewer burials in the 4 8 preceding fifty years. 4 9 2. Each county board of supervisors may adopt an ordinance 4 10 assuming jurisdiction and control of pioneer cemeteries in the 4 11 county. The board shall exercise the powers and duties of 4 12 township trustees relating to the maintenance and repair of 4 13 cemeteries in the county as provided in sections 359.28 4 14 through 359.41 except that the board shall not certify a tax 4 15 levy pursuant to section 359.30 or 359.33 and except that the 4 16 maintenance and repair of all cemeteries under the 4 17 jurisdiction of the county including pioneer cemeteries shall 4 18 be paid from thecounty generalcemetery fund. The 4 19 maintenance and improvement program for a pioneer cemetery may 4 20 include restoration and management of native prairie grasses 4 21 and wildflowers. 4 22 3. In lieu of management of the cemeteries, the board of 4 23 supervisors may create, by ordinance, a cemetery commission to 4 24 assume jurisdiction and management of the pioneer cemeteries 4 25 in the county. The ordinance shall delineate the number of 4 26 commissioners, the appointing authority, the term of office, 4 27 officers, employees, organizational matters, rules of 4 28 procedure, compensation and expenses, and other matters deemed 4 29 pertinent by the board. The board may delegate any power and 4 30 duties relating to cemeteries which may otherwise be exercised 4 31 by township trustees pursuant to sections 359.28 through 4 32 359.41 to the cemetery commission except the commission shall 4 33 not certify a tax levy pursuant to section 359.30 or 359.33 4 34 and except that the expenses of the cemetery commission shall 4 35 be paid from thecounty generalcemetery fund. 5 1 4. Notwithstanding sections 359.30 and 359.33, the costs 5 2 of management, repair, and maintenance of pioneer cemeteries 5 3 shall be paid from thecounty generalcemetery fund. 5 4 Sec. 9. Section 331.421, subsections 5 and 6, Code 1999, 5 5 are amended by striking the subsections. 5 6 Sec. 10. Section 331.423, Code 1999, is amended by 5 7 striking the section and inserting in lieu thereof the 5 8 following: 5 9 331.423 PROPERTY TAX DOLLARS – MAXIMUMS. 5 10 1. Annually, the board shall certify property tax levies 5 11 for general county services and rural county services, subject 5 12 to the limitation on property tax dollars provided in this 5 13 section. 5 14 2. For purposes of this section and section 331.423A: 5 15 a. "Annual price index" means the percent change, computed 5 16 to two decimal places, between the preliminary price index for 5 17 the third quarter of the calendar year preceding the calendar 5 18 year in which the fiscal year starts and the revised price 5 19 index for the third quarter of the calendar year prior to that 5 20 as published in the same issue in which such preliminary price 5 21 index is first published. The price index used shall be the 5 22 state and local government chain-type price index used in the 5 23 quantity and price indexes for gross domestic product. The 5 24 annual price index shall not be less than one hundred percent. 5 25 b. "Local sales and services taxes" means local sales and 5 26 services taxes imposed under the authority of chapter 422B. 5 27 c. "Maximum general tax rate" means the maximum property 5 28 tax dollars for general county services, as calculated in this 5 29 section, divided by the previous fiscal year's taxable 5 30 valuation in the county. 5 31 d. "Maximum rural tax rate" means the maximum property tax 5 32 dollars for rural services, as calculated in this section, 5 33 divided by the previous fiscal year's taxable valuation in the 5 34 unincorporated area of the county. 5 35 e. "Net new valuation taxes" means the amount of property 6 1 tax dollars equal to the previous fiscal year's maximum 6 2 general tax rate for purposes of the general fund, or the 6 3 maximum rural rate for purposes of the rural services fund, 6 4 times the increase from the previous fiscal year in taxable 6 5 valuation due to the following: 6 6 (1) Net new construction. 6 7 (2) Additions or improvements to existing structures. 6 8 (3) Remodeling of existing structures for which a building 6 9 permit is required. 6 10 (4) A municipality no longer dividing tax revenues in an 6 11 urban renewal area as provided in section 403.19, to the 6 12 extent that the incremental valuation released is due to new 6 13 construction or revaluation on property newly constructed 6 14 after the division of revenue begins. 6 15 (5) That portion of taxable property located in an urban 6 16 revitalization area on which an exemption was allowed and such 6 17 exemption has expired. 6 18 f. "Property tax replacement dollars" means revenues 6 19 received under sections 427B.17 through 427B.19D and revenues 6 20 received under chapter 437A, subchapter II. 6 21 g. "Unused taxing authority" means the difference between 6 22 the maximum amount of property tax dollars calculated under 6 23 subsection 3 for the fiscal year and the amount actually 6 24 levied under this section in that fiscal year. Unused taxing 6 25 authority may be carried forward to successive fiscal years. 6 26 However, the amount of unused taxing authority which may be 6 27 carried forward shall not exceed twenty-five percent of the 6 28 maximum taxes available in the fiscal year. 6 29 3. a. Beginning with the fiscal year beginning July 1, 6 30 2002, the maximum amount of property tax dollars which may be 6 31 certified by a county for general county services shall be an 6 32 amount equal to the sum of the following, adjusted by the 6 33 amounts in paragraphs "c", "d", and "e": 6 34 (1) The prior year's maximum property tax dollars for 6 35 general county services minus the prior year's unused taxing 7 1 authority times the annual price index. 7 2 (2) The amount of net new valuation taxes. 7 3 (3) The amount of unused taxing authority. 7 4 b. Beginning with the fiscal year beginning July 1, 2002, 7 5 the maximum amount of property tax dollars which may be 7 6 certified by a county for rural county services shall be an 7 7 amount equal to the sum of the following, adjusted by the 7 8 amounts in paragraphs "c", "d", and "e": 7 9 (1) The prior year's maximum property tax dollars for 7 10 rural county services minus the prior year's unused taxing 7 11 authority times the annual price index. 7 12 (2) The amount of net new valuation taxes. 7 13 (3) The amount of unused taxing authority. 7 14 c. Subtract the amount of property tax replacement dollars 7 15 received for the previous fiscal year in the proportion that 7 16 such replacement dollars were deposited in the general fund 7 17 and the rural services fund. 7 18 d. Subtract the amount of local sales and services taxes 7 19 for property tax relief estimated by the department of revenue 7 20 and finance to be received for the fiscal year for which the 7 21 maximum property tax dollars are being calculated in the 7 22 proportion that such local sales and services taxes will be 7 23 deposited in the general fund and the rural services fund. 7 24 e. If territory within a county is annexed by a city, the 7 25 county shall subtract from the rural services fund maximum for 7 26 the year in which the annexation takes effect an amount equal 7 27 to the last year's maximum rural tax rate times the taxable 7 28 valuation in the territory. If territory within a county is 7 29 severed from a city, or if a city is discontinued, the county 7 30 shall add to the rural services fund maximum for the year in 7 31 which the severance or discontinuance takes effect an amount 7 32 equal to the last year's maximum rural tax rate times the 7 33 taxable valuation in the territory which is the subject of the 7 34 severance or discontinuance. 7 35 4. Property taxes certified for deposit in the mental 8 1 health fund in section 331.424A, the cemetery fund in section 8 2 331.424B, and the debt service fund in section 331.430, any 8 3 capital projects fund established by the county for deposit of 8 4 bond, loan, or note proceeds, any temporary increase approved 8 5 pursuant to section 331.424, and the trust and agency funds 8 6 established in section 331.425 are not counted against the 8 7 maximum amount of property tax dollars that may be certified 8 8 for a fiscal year under subsection 3. 8 9 5. For purposes of the fiscal year beginning July 1, 2002, 8 10 the prior year's maximum property tax dollars is the amount 8 11 computed under section 331.423A. 8 12 6. The county finance committee established under chapter 8 13 333A shall adopt rules to administer this section and section 8 14 331.423A. 8 15 Sec. 11. NEW SECTION. 331.423A BASE YEAR MAXIMUM 8 16 PROPERTY TAX DOLLARS. 8 17 1. a. For purposes of section 331.423, for fiscal years 8 18 beginning on or after July 1, 2002, the maximum amount of 8 19 property tax dollars for general county services for taxes 8 20 payable in the fiscal year beginning July 1, 2001, shall be an 8 21 amount equal to the sum of the following, divided by three, 8 22 and adjusted by the amounts in paragraphs "b" and "c": 8 23 (1) The sum of the amount of property taxes levied for 8 24 general county services and the amount of property tax 8 25 replacement dollars received and the amount of local sales and 8 26 services tax revenues received as property tax relief and 8 27 deposited in the general fund, all for the fiscal year 8 28 beginning July 1, 1997, times one and sixty-eight thousandths. 8 29 (2) The sum of the amount of property taxes levied for 8 30 general county services and the amount of property tax 8 31 replacement dollars received and the amount of local sales and 8 32 services tax revenues received as property tax relief and 8 33 deposited in the general fund, all for the fiscal year 8 34 beginning July 1, 1998, times one and forty-seven thousandths. 8 35 (3) The sum of the amount of property taxes levied for 9 1 general county services and the amount of property tax 9 2 replacement dollars received and the amount of local sales and 9 3 services tax revenues received as property tax relief and 9 4 deposited in the general fund, all for the fiscal year 9 5 beginning July 1, 1999, times one and three hundredths. 9 6 b. The amount in paragraph "a" shall be adjusted by 9 7 subtracting the amount of the ending fund balance differential 9 8 for general county services as provided in this paragraph. 9 9 The ending fund balance differential for general county 9 10 services is the difference between the general fund's ending 9 11 balance for the fiscal year beginning July 1, 1999, and the 9 12 general fund's ending balance for the fiscal year beginning 9 13 July 1, 1996, divided by three. 9 14 c. For purposes of this subsection, "general county 9 15 services" does not include taxes levied pursuant to section 9 16 331.423, subsection 1, Code 1999, for deposit in the mental 9 17 health fund, the debt service fund, or the cemetery fund. 9 18 2. a. For purposes of section 331.423, for fiscal years 9 19 beginning on or after July 1, 2002, the maximum amount of 9 20 property tax dollars for rural county services for taxes 9 21 payable in the fiscal year beginning July 1, 2001, shall be an 9 22 amount equal to the sum of the following, divided by three, 9 23 and adjusted by the amounts in paragraphs "b" and "c": 9 24 (1) The sum of the amount of property taxes levied for 9 25 rural county services and the amount of property tax 9 26 replacement dollars received and the amount of local sales and 9 27 services tax revenues received as property tax relief and 9 28 deposited in the rural services fund, all for the fiscal year 9 29 beginning July 1, 1997, times one and sixty-eight thousandths. 9 30 (2) The sum of the amount of property taxes levied for 9 31 rural county services and the amount of property tax 9 32 replacement dollars received and the amount of local sales and 9 33 services tax revenues received as property tax relief and 9 34 deposited in the rural services fund, all for the fiscal year 9 35 beginning July 1, 1998, times one and forty-seven thousandths. 10 1 (3) The sum of the amount of property taxes levied for 10 2 rural county services and the amount of property tax 10 3 replacement dollars received and the amount of local sales and 10 4 services tax revenues received as property tax relief and 10 5 deposited in the rural services fund, all for the fiscal year 10 6 beginning July 1, 1999, times one and three hundredths. 10 7 b. The amount in paragraph "a" shall be adjusted by 10 8 subtracting the amount of the ending fund balance differential 10 9 for rural county services as provided in this paragraph. The 10 10 ending fund balance differential for rural county services is 10 11 the difference between the rural services fund's ending 10 12 balance for the fiscal year beginning July 1, 1999, and the 10 13 rural services fund's ending balance for the fiscal year 10 14 beginning July 1, 1996. 10 15 c. For purposes of this subsection, "rural county 10 16 services" does not include taxes levied pursuant to section 10 17 331.423, subsection 1, Code 1999, for deposit in the mental 10 18 health fund, the debt service fund, or the cemetery fund. 10 19 Sec. 12. NEW SECTION. 331.423B STATE PROPERTY TAX 10 20 RELIEF. 10 21 It is the intent of the general assembly that the maximum 10 22 amount of property tax dollars which may be certified, as 10 23 calculated pursuant to section 331.423, shall be reduced by 10 24 the amount appropriated by the general assembly for property 10 25 tax relief first enacted for fiscal years beginning on or 10 26 after July 1, 2000. 10 27 Sec. 13. NEW SECTION. 331.423C BEGINNING CASH BALANCE 10 28 LIMITATION. 10 29 Beginning with the fiscal year beginning July 1, 2004, the 10 30 beginning fund balance for general county services and the 10 31 beginning fund balance for rural county services shall not 10 32 exceed an amount equal to fifty percent of the amount budgeted 10 33 for each of those funds for the fiscal year. 10 34 Sec. 14. Section 331.424, Code 1999, is amended by 10 35 striking the section and inserting in lieu thereof the 11 1 following: 11 2 331.424 AUTHORITY TO LEVY BEYOND MAXIMUM PROPERTY TAX 11 3 DOLLARS. 11 4 1. The board may certify additions to the maximum amount 11 5 of property tax dollars to be levied for a period of time not 11 6 to exceed ten years if the proposition has been submitted at a 11 7 special levy election and received a favorable majority of the 11 8 votes cast on the proposition. However, a county may not 11 9 proceed under this section if the additional property tax 11 10 dollars being sought are to fund a general county purpose or 11 11 an essential county purpose for which general obligation bonds 11 12 may be issued under section 331.442 or 331.443. 11 13 2. Such special election is subject to the following: 11 14 a. The board must give at least thirty days' notice to the 11 15 county commissioner of elections that the special election is 11 16 to be held. 11 17 b. The special election shall be conducted by the county 11 18 commissioner of elections in accordance with the law. 11 19 c. The proposition to be submitted shall be substantially 11 20 in the following form: 11 21 "Vote "yes" or "no" on the following: 11 22 Shall the county of _______ levy for an additional $_______ 11 23 each year for years beginning July 1 in excess of the 11 24 statutory limits otherwise applicable for the (general county 11 25 services or rural services) fund?" 11 26 d. The canvass shall be held beginning at one p.m. on the 11 27 second day which is not a holiday following the special 11 28 election. 11 29 e. Notice of the proposed special election shall be 11 30 published at least twice in a newspaper as specified in 11 31 section 331.305 prior to the date of the special election. 11 32 The first notice shall appear as early as practicable after 11 33 the board has decided to seek additional property tax dollars. 11 34 3. All persons eligible to vote in the county may vote on 11 35 the proposition, for increases in property taxes under section 12 1 331.423, subsection 3, paragraph "a", for the general fund. 12 2 Persons residing outside of the corporate limits of the cities 12 3 in the county and otherwise eligible to vote may vote on the 12 4 proposition to increase property taxes in excess of the 12 5 statutory limits under section 331.423, subsection 3, 12 6 paragraph "b". 12 7 Sec. 15. Section 331.424B, Code 1999, is amended to read 12 8 as follows: 12 9 331.424B CEMETERY LEVY. 12 10 The board may levy annually a tax not to exceed six and 12 11 three-fourths cents per thousand dollars of the assessed value 12 12 of all taxable property in the county to repair and maintain 12 13 all cemeteries under the jurisdiction of the board including 12 14 pioneer cemeteries and to pay other expenses of the board or 12 15 the cemetery commission as provided in section 331.325. The 12 16 proceeds of the tax levy shall be credited to thecounty12 17generalcemetery fund.Sections 444.25A and 444.25B do not12 18apply to the property tax levied or expended for cemeteries12 19pursuant to section 331.325.12 20 Sec. 16. Section 331.425, Code 1999, is amended by 12 21 striking the section and inserting in lieu thereof the 12 22 following: 12 23 331.425 TRUST AND AGENCY FUNDS. 12 24 A county may establish trust and agency funds for the 12 25 following purposes: 12 26 1. Accounting for pension and related employee benefit 12 27 funds as provided by the county finance committee. A county 12 28 may certify taxes to be levied for a trust and agency fund in 12 29 the amount necessary to meet its obligations. 12 30 2. Accounting for gifts received by the county for a 12 31 particular purpose. 12 32 3. Accounting for money and property received and handled 12 33 by the county as trustee or custodian or in the capacity of an 12 34 agent. 12 35 4. Accounting for tort liability insurance, property 13 1 insurance, and any other insurance that may be necessary in 13 2 the operation of the county, costs of a self-insurance 13 3 program, costs of a local government risk pool, and amounts 13 4 payable under any insurance agreements to provide or procure 13 5 such insurance, self-insurance program, or local government 13 6 risk pool. 13 7 Sec. 17. Section 331.427, subsection 2, paragraph l, Code 13 8 1999, is amended to read as follows: 13 9 l. Services listed insection 331.424, subsection 1 and13 10 section 331.554. 13 11 Sec. 18. Section 331.428, subsection 2, paragraph d, Code 13 12 1999, is amended by striking the paragraph. 13 13 Sec. 19. Section 331.429, subsection 1, Code 1999, is 13 14 amended by adding the following new paragraph: 13 15 NEW PARAGRAPH. f. Notwithstanding paragraphs "a" and "b", 13 16 transfers from the general fund or rural services fund in 13 17 accordance with this paragraph. The board may transfer 13 18 additional funds from the general fund or rural services fund 13 19 in excess of the amounts in paragraphs "a" and "b" if the 13 20 proposition has been submitted at a special election and 13 21 received a favorable majority of the votes cast on the 13 22 proposition. The board shall direct the county commissioner 13 23 of elections to submit the question to the eligible voters for 13 24 the proposition thirty days prior to the date set by the board 13 25 for the election. For a transfer from the general fund, all 13 26 eligible voters residing in the county may vote on the 13 27 proposition. For a transfer from the rural services fund, 13 28 eligible voters residing outside the corporate limits of a 13 29 city within the county may vote on the proposition. The 13 30 proposition to be submitted shall be substantially in the 13 31 following form: 13 32 "Vote "yes" or "no" on the following question: 13 33 Shall the county of _______ transfer an additional $______ 13 34 each year for two years beginning July 1, ____, from the 13 35 (general fund or rural services fund) to the secondary road 14 1 fund?" 14 2 Upon approval of a majority of voters voting on the 14 3 proposition, the board shall certify the results of the 14 4 election to the department of management and transfer the 14 5 approved amount to the secondary road fund in the appropriate 14 6 fiscal year. The state appeal board in the department of 14 7 management shall not overturn the election results but may 14 8 interpret or enforce them in their review of a budget protest 14 9 under section 331.436. 14 10 Sec. 20. Section 384.1, Code 1999, is amended by striking 14 11 the section and inserting in lieu thereof the following: 14 12 384.1 PROPERTY TAX DOLLARS – MAXIMUMS. 14 13 1. A city shall certify taxes to be levied by the city on 14 14 all taxable property within the city limits, for all city 14 15 government purposes. Annually, the city council may certify 14 16 basic levies for city government purposes, subject to the 14 17 limitation on property tax dollars provided in this section. 14 18 2. For purposes of this section: 14 19 a. "Annual price index" means the percent change, computed 14 20 to two decimal places, between the preliminary price index for 14 21 the third quarter of the calendar year preceding the calendar 14 22 year in which the fiscal year starts and the revised price 14 23 index for the third quarter of the calendar year prior to that 14 24 as published in the same issue in which such preliminary price 14 25 index is first published. The price index used shall be the 14 26 state and local government chain-type price index used in the 14 27 quantity and price indexes for gross domestic product. The 14 28 annual price index shall not be less than one hundred percent. 14 29 b. "Local sales and services taxes" means local sales and 14 30 services taxes imposed under the authority of chapter 422B. 14 31 c. "Maximum tax rate" means the previous fiscal year's 14 32 maximum property tax dollars, as calculated in section 384.1, 14 33 divided by the prior fiscal year's taxable valuation in the 14 34 city. 14 35 d. "Net new valuation taxes" means the amount of property 15 1 tax dollars equal to the previous fiscal year's maximum tax 15 2 rate for city government purposes times the increase from the 15 3 previous year in taxable valuation due to the following: 15 4 (1) Net new construction. 15 5 (2) Additions or improvements to existing structures. 15 6 (3) Remodeling of existing structures for which a building 15 7 permit is required. 15 8 (4) A municipality no longer dividing tax revenues in an 15 9 urban renewal area as provided in section 403.19, to the 15 10 extent that the incremental valuation released is due to new 15 11 construction or revaluation on property newly constructed 15 12 after the division of revenue begins. 15 13 (5) That portion of taxable property located in an urban 15 14 revitalization area on which an exemption was allowed and such 15 15 exemption has expired. 15 16 e. "Property tax replacement dollars" means revenues 15 17 received under sections 427B.17 through 427B.19D and revenues 15 18 received under chapter 437A, subchapter II. 15 19 f. "Unused taxing authority" means the difference between 15 20 the maximum amount of property tax dollars calculated under 15 21 subsection 3 for the fiscal year and the amount actually 15 22 levied under this section in that fiscal year. Unused taxing 15 23 authority may be carried forward to successive fiscal years. 15 24 However, the amount of unused taxing authority which may be 15 25 carried forward shall not exceed twenty-five percent of the 15 26 maximum taxes available in the fiscal year. 15 27 3. a. Beginning with the fiscal year beginning July 1, 15 28 2002, the maximum amount of property tax dollars which may be 15 29 certified by a city for city government purposes shall be an 15 30 amount equal to the sum of the following, adjusted by the 15 31 amounts in paragraphs "b", "c", and "d": 15 32 (1) The prior year's maximum property tax dollars for city 15 33 government purposes minus the prior year's unused taxing 15 34 authority times the annual price index. 15 35 (2) The amount of net new valuation taxes. 16 1 (3) The amount of unused taxing authority. 16 2 b. Subtract the amount of property tax replacement dollars 16 3 received and deposited in the city general fund for the 16 4 previous fiscal year. 16 5 c. Subtract the amount of local sales and services taxes 16 6 estimated by the department of revenue and finance to be 16 7 received for property tax relief for the fiscal year for which 16 8 the maximum property tax dollars are being calculated in the 16 9 proportion that such local sales and services taxes will be 16 10 deposited in the city general fund. 16 11 d. If territory within a county is annexed by a city, the 16 12 city shall add to its maximum property taxes for the year in 16 13 which the annexation takes effect an amount equal to the last 16 14 year's maximum tax rate times the taxable valuation in the 16 15 territory. If territory within a county is severed from a 16 16 city, or if a city is discontinued, the city shall subtract 16 17 from its maximum property taxes for the year in which the 16 18 severance or discontinuance takes effect an amount equal to 16 19 the last year's maximum tax rate times the taxable valuation 16 20 in the territory which is the subject of the severance or 16 21 discontinuance. 16 22 4. Property taxes certified for deposit in the debt 16 23 service fund in section 384.4, trust and agency funds in 16 24 section 384.6, capital improvements reserve fund in section 16 25 384.7, the emergency fund in section 384.8, any capital 16 26 projects fund established by the city for deposit of bond, 16 27 loan, or note proceeds, any temporary increase approved 16 28 pursuant to section 384.12A and property taxes collected from 16 29 a voted levy in section 384.12, are not counted against the 16 30 maximum amount of property tax dollars that may be certified 16 31 for a fiscal year under this subsection. 16 32 5. Notwithstanding the maximum amount of taxes a city may 16 33 certify for levy, the tax levied by a city on tracts of land 16 34 and improvements thereon used and assessed for agricultural or 16 35 horticultural purposes shall not exceed three dollars and 17 1 three-eighths cents per thousand dollars of assessed value in 17 2 any year. Improvements located on such tracts of land and not 17 3 used for agricultural or horticultural purposes and all 17 4 residential dwellings are subject to the same rate of tax 17 5 levied by the city on all other taxable property within the 17 6 city. 17 7 6. For the purposes of the fiscal year beginning July 1, 17 8 2002, the prior year's maximum property tax dollars is the 17 9 amount computed under section 384.1A. 17 10 7. The city finance committee established under section 17 11 384.13 shall adopt rules to administer this section and 17 12 section 384.1A. 17 13 Sec. 21. NEW SECTION. 384.1A BASE YEAR MAXIMUM TAXES. 17 14 1. a. For purposes of section 384.1, for fiscal years 17 15 beginning on or after July 1, 2002, the maximum amount of 17 16 property tax dollars which may be certified by a city for city 17 17 government purposes for taxes payable in the fiscal year 17 18 beginning July 1, 2001, shall be an amount equal to the sum of 17 19 the following, divided by three, and adjusted by the amounts 17 20 in paragraphs "b" and "c": 17 21 (1) The sum of the amount of property taxes levied for 17 22 city government purposes and the amount of property tax 17 23 replacement dollars received and the amount of local sales and 17 24 services tax revenues received as property tax relief 17 25 deposited in the city general fund all for the fiscal year 17 26 beginning July 1, 1997, times one and sixty-eight thousandths. 17 27 (2) The sum of the amount of property taxes levied for 17 28 city government purposes and the amount of property tax 17 29 replacement dollars received and the amount of local sales and 17 30 services tax revenues received as property tax relief 17 31 deposited in the city general fund all for the fiscal year 17 32 beginning July 1, 1998, times one and forty-seven thousandths. 17 33 (3) The sum of the amount of property taxes levied for 17 34 city government purposes and the amount of property tax 17 35 replacement dollars received and the amount of local sales and 18 1 services tax revenues received as property tax relief 18 2 deposited in the city general fund all for the fiscal year 18 3 beginning July 1, 1999, times one and three hundredths. 18 4 b. The amount in paragraph "a" shall be adjusted by 18 5 subtracting the amount of the ending fund balance differential 18 6 for city government purposes as provided in this paragraph. 18 7 The ending fund balance differential for city government 18 8 purposes is the difference between the city general fund's 18 9 ending balance for the fiscal year beginning July 1, 1999, and 18 10 the city general fund's ending balance for the fiscal year 18 11 beginning July 1, 1996, divided by three. 18 12 c. For purposes of this subsection, "city government 18 13 purposes" does not include taxes levied for deposit in the 18 14 debt service fund, trust and agency funds, capital 18 15 improvements reserve fund, the emergency fund, any capital 18 16 projects fund established by the city for deposit of bond, 18 17 loan, or note proceeds, and any voted levies under section 18 18 384.12. 18 19 Sec. 22. NEW SECTION. 384.1B STATE PROPERTY TAX RELIEF. 18 20 It is the intent of the general assembly that the maximum 18 21 amount of property tax dollars which may be certified, as 18 22 calculated pursuant to section 384.1, shall be reduced by the 18 23 amount appropriated by the general assembly for property tax 18 24 relief first enacted for fiscal years beginning on or after 18 25 July 1, 2000. 18 26 Sec. 23. NEW SECTION. 384.12A AUTHORITY TO LEVY BEYOND 18 27 MAXIMUM PROPERTY TAX DOLLARS. 18 28 1. The city council may certify additions to the maximum 18 29 amount of property tax dollars to be levied for a period of 18 30 time not to exceed ten years if the proposition has been 18 31 submitted at a special levy election and received a favorable 18 32 majority of the votes cast on the proposition. However, a 18 33 city may not proceed under this section if the additional 18 34 property tax dollars being sought are to fund a general city 18 35 purpose or an essential city purpose for which general 19 1 obligation bonds may be issued under section 384.25 or 384.26. 19 2 2. Such special election is subject to the following: 19 3 a. The city council must give at least thirty days' notice 19 4 to the county commissioner of elections that the special 19 5 election is to be held. 19 6 b. The special election shall be conducted by the county 19 7 commissioner of elections in accordance with the law. 19 8 c. The proposition to be submitted shall be substantially 19 9 in the following form: 19 10 "Vote "yes" or "no" on the following: 19 11 Shall the city of _______ levy for an additional $_______ 19 12 each year for years beginning next July 1 in excess of 19 13 the statutory limits otherwise applicable for the city general 19 14 fund?" 19 15 d. The canvass shall be held beginning at one p.m. on the 19 16 second day which is not a holiday following the special 19 17 election. 19 18 e. Notice of the proposed special election shall be 19 19 published at least twice in a newspaper as specified in 19 20 section 362.3 prior to the date of the special election. The 19 21 first notice shall appear as early as practicable after the 19 22 city council has decided to seek additional property tax 19 23 dollars. 19 24 Sec. 24. NEW SECTION. 384.12B BEGINNING CASH BALANCE 19 25 LIMITATION. 19 26 Beginning with the fiscal year beginning July 1, 2004, the 19 27 beginning fund balance for the city general fund shall not 19 28 exceed an amount equal to fifty percent of the amount budgeted 19 29 for the fund for the fiscal year. 19 30 Sec. 25. Section 384.12, subsection 20, Code 1999, is 19 31 amended by striking the subsection. 19 32 Sec. 26. INTERIM STUDY REQUEST. The legislative council 19 33 shall establish a legislative interim study committee to meet 19 34 during the 2000 interim comprised of members of the general 19 35 assembly to study the property tax system in Iowa and related 20 1 topics deemed appropriate by the committee. The committee 20 2 shall study the role of property taxes as the primary source 20 3 of revenue for local governments, including how such revenue 20 4 is spent and the effectiveness of property tax relief 20 5 measures. The committee shall study alternative forms of 20 6 financing costs and expenses presently financed by property 20 7 taxes and shall explore economies and efficiencies that could 20 8 be realized by cities and counties through increased joint 20 9 local government efforts and increased state assumption of 20 10 local government costs. 20 11 The committee shall study all aspects of the property tax 20 12 system, including, but not limited to, classification of 20 13 property, assessment of property, property tax exemptions and 20 14 credits, economic development tools involving property taxes, 20 15 and property tax collection, delinquency, and redemption. 20 16 The committee shall study current and proposed limitations 20 17 on property tax collections, including levy rate limits, 20 18 limitations on growth in assessments, and limitations on the 20 19 amount of property tax dollars collected per year by cities 20 20 and counties. 20 21 As part of its duties, the committee shall review this Act. 20 22 The committee shall report to the general assembly by 20 23 January 15, 2001. The report shall include recommendations 20 24 pertaining to this Act. 20 25 Sec. 27. Sections 331.426 and 403.20, Code 1999, are 20 26 repealed. 20 27 Sec. 28. Section 26 of this Act, being deemed of immediate 20 28 importance, takes effect upon enactment. The remainder of 20 29 this Act shall not take effect until the interim committee 20 30 established pursuant to section 26 of this Act files its final 20 31 report with the majority leader of the senate and speaker of 20 32 the house of representatives. 20 33 Sec. 29. APPLICABILITY DATE. This Act applies to the 20 34 fiscal year beginning July 1, 2002, and all subsequent fiscal 20 35 years. 21 1 EXPLANATION 21 2 This bill relates to the limitation on property taxes for 21 3 cities and counties by removing the property tax rate 21 4 limitations on cities and counties and substituting a 21 5 limitation on property tax dollars and by providing for state 21 6 funding of certain mandates imposed on political subdivisions. 21 7 The bill provides that if a new state mandate is imposed on 21 8 or after July 1, 2000, which requires engaging in a new 21 9 activity, providing a new service, or expanding a service 21 10 beyond what was required before July 1, 2000, the state 21 11 mandate must be fully funded. If the state mandate is not 21 12 fully funded, the affected political subdivisions are not 21 13 required to comply or implement the state mandate. Also, no 21 14 fines or penalties may be imposed on a political subdivision 21 15 for failure to comply or carry out an unfunded state mandate. 21 16 However, requirements relating to public employee 21 17 retirement systems under Code chapters 97B, 410, and 411, or 21 18 to the enforcement of Code chapter 321J or to the criminal 21 19 code pursuant to Code chapters 701 to 728, are not considered 21 20 state mandates. Also, requirements originating from the 21 21 federal government and administered, implemented, or enacted 21 22 by state law or rule are not considered state mandates. 21 23 This bill strikes Code section 25B.2, subsection 3, and 21 24 rewrites it as a new section outside the intent section of 21 25 Code chapter 25B. The rewritten section removes a qualifying 21 26 phrase which limits the circumstances under which a political 21 27 subdivision may fail to carry out an unfunded state mandate. 21 28 Community college and area education agency are added to the 21 29 definition of "political subdivision" as had been provided in 21 30 Code section 25B.2, subsection 3, which was stricken. 21 31 The bill removes the property tax rate limitations on 21 32 cities and counties and substitutes a limitation on the 21 33 maximum amount of property tax dollars which may be certified 21 34 by a city or county. 21 35 The bill requires each city and county to compute a maximum 22 1 property tax dollars base based on averages of three fiscal 22 2 years' worth of tax askings by the city or county multiplied 22 3 by a growth factor, i.e., price index, for each of the three 22 4 years. Adjustments are made for ending fund balance 22 5 differentials between the three years, amount of property tax 22 6 replacement dollars received for the three years, and amount 22 7 of local sales and services taxes received for the three 22 8 years, if applicable. Computation of this base year for a 22 9 county does not include taxes levied for deposit in the mental 22 10 health fund, the debt service fund, and the cemetery fund, and 22 11 for a city does not include taxes levied for deposit in the 22 12 debt service fund, trust and agency funds, capital 22 13 improvements reserve fund, the emergency fund, capital 22 14 projects fund, and property taxes collected from a voted 22 15 supplemental levy. 22 16 The bill provides that the base year calculation shall be 22 17 the maximum property tax base for the fiscal year beginning 22 18 July 1, 2002, as adjusted by the growth factor. Each year, 22 19 property tax replacement dollars to be received and local 22 20 sales and services taxes to be received are subtracted from 22 21 the amount of property taxes for the fiscal year to reach the 22 22 maximum amount of property taxes authorized to be levied for 22 23 the fiscal year. "Property tax replacement dollars" is 22 24 defined to mean revenues received from the utility delivery, 22 25 generation, and transmission taxes and the machinery and 22 26 equipment reimbursements to cities and counties. 22 27 The bill provides that a city or county that has not levied 22 28 at its maximum for a year may carry forward the unused taxing 22 29 authority from year to year in an amount not to exceed 25 22 30 percent of the budget for the year. The bill also provides 22 31 that taxes from new valuation be added in separately. 22 32 The bill allows a city or county to exceed its maximum tax 22 33 authority for up to 10 years at a time if approved by the 22 34 voters at a special election. The bill also allows the 22 35 secondary road fund levy limits to be exceeded if approved by 23 1 the voters at a special election. 23 2 The bill provides that the beginning fund balance for the 23 3 city general fund or for the county general and rural funds 23 4 shall not exceed 50 percent of the budget for the fiscal year. 23 5 The bill repeals the supplemental levy for counties and the 23 6 sections of the Code that currently allow cities and counties 23 7 to exceed their levy rate limitations. The bill gives 23 8 counties authority to establish a cemetery fund and trust and 23 9 agency funds. 23 10 The bill repeals the section of the Code that requires that 23 11 the property assessment limitation rollback for an entire 23 12 urban renewal area be applied to the base valuation only. 23 13 The bill provides that the legislative council establish a 23 14 legislative study committee to study property taxes and to 23 15 study and make recommendations on this bill. The committee is 23 16 to report to the general assembly by January 15, 2001. This 23 17 portion of the bill takes effect immediately. The remainder 23 18 of the bill takes effect when the final report of the interim 23 19 study committee is filed with the majority leader of the 23 20 senate and the speaker of the house of representatives. 23 21 The bill applies to fiscal years beginning July 1, 2002, 23 22 and all subsequent fiscal years. 23 23 LSB 6000HV 78 23 24 sc/as/5
Text: HF02543 Text: HF02545 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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