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PAG LIN 1 1 Section 1. Section 23A.2, subsection 10, paragraph h, Code 1 2 2001, is amended by striking the paragraph. 1 3 Sec. 2. Section 25B.2, subsection 3, Code 2001, is amended 1 4 by striking the subsection. 1 5 Sec. 3. Section 25B.3, subsection 1, Code 2001, 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, 2001, 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, 2001, 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 2001, 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 2001, 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 in control of a state institution shall 3 8 direct the business manager of each institution under the 3 9 administrator's jurisdictionwhich is mentioned in section3 10331.424, subsection 1, paragraphs "a" and "b", andfor which 3 11 services are paid under section 331.424A, to quarterly inform 3 12 the county of legal settlement's entity designated to perform 3 13 the county's single entry point process of any patient or 3 14 resident who has an amount in excess of two hundred dollars on 3 15 account in the patients' personal deposit fund and the amount 3 16 on deposit. The administrators shall direct the business 3 17 manager to further notify the entity designated to perform the 3 18 county's single entry point process at least fifteen days 3 19 before the release of funds in excess of two hundred dollars 3 20 or upon the death of the patient or resident. If the patient 3 21 or resident has no county of legal settlement, notice shall be 3 22 made to the director of human services and the administrator 3 23 in control of the institution involved. 3 24 Sec. 7. Section 331.301, subsection 12, Code 2001, is 3 25 amended to read as follows: 3 26 12. The board of supervisors may credit funds to a reserve 3 27 for the purposes authorized by subsection 11 of this section;3 28section 331.424, subsection 1, paragraph "f";and section 3 29 331.441, subsection 2, paragraph "b". Moneys credited to the 3 30 reserve, and interest earned on such moneys, shall remain in 3 31 the reserve until expended for purposes authorized by 3 32 subsection 11 of this section; section 331.424, subsection 1,3 33paragraph "f";or section 331.441, subsection 2, paragraph 3 34 "b". 3 35 Sec. 8. Section 331.325, Code 2001, is amended to read as 4 1 follows: 4 2 331.325 CONTROL AND MAINTENANCE OF PIONEER CEMETERIES – 4 3 CEMETERY COMMISSION. 4 4 1. As used in this section, "pioneer cemetery" means a 4 5 cemetery where there have been six or fewer burials in the 4 6 preceding fifty years. 4 7 2. Each county board of supervisors may adopt an ordinance 4 8 assuming jurisdiction and control of pioneer cemeteries in the 4 9 county. The board shall exercise the powers and duties of 4 10 township trustees relating to the maintenance and repair of 4 11 cemeteries in the county as provided in sections 359.28 4 12 through 359.41 except that the board shall not certify a tax 4 13 levy pursuant to section 359.30 or 359.33 and except that the 4 14 maintenance and repair of all cemeteries under the 4 15 jurisdiction of the county including pioneer cemeteries shall 4 16 be paid from thecounty generalcemetery fund. The 4 17 maintenance and improvement program for a pioneer cemetery may 4 18 include restoration and management of native prairie grasses 4 19 and wildflowers. 4 20 3. In lieu of management of the cemeteries, the board of 4 21 supervisors may create, by ordinance, a cemetery commission to 4 22 assume jurisdiction and management of the pioneer cemeteries 4 23 in the county. The ordinance shall delineate the number of 4 24 commissioners, the appointing authority, the term of office, 4 25 officers, employees, organizational matters, rules of 4 26 procedure, compensation and expenses, and other matters deemed 4 27 pertinent by the board. The board may delegate any power and 4 28 duties relating to cemeteries which may otherwise be exercised 4 29 by township trustees pursuant to sections 359.28 through 4 30 359.41 to the cemetery commission except the commission shall 4 31 not certify a tax levy pursuant to section 359.30 or 359.33 4 32 and except that the expenses of the cemetery commission shall 4 33 be paid from thecounty generalcemetery fund. 4 34 4. Notwithstanding sections 359.30 and 359.33, the costs 4 35 of management, repair, and maintenance of pioneer cemeteries 5 1 shall be paid from thecounty generalcemetery fund. 5 2 Sec. 9. Section 331.421, subsections 1 and 10, Code 2001, 5 3 are amended by striking the subsections. 5 4 Sec. 10. Section 331.421, Code 2001, is amended by adding 5 5 the following new subsection: 5 6 NEW SUBSECTION. 7A. "Item" means a specified program, 5 7 individual, or detailed expenditure within a fund whether it 5 8 is a budgeted expenditure or an appropriation. 5 9 Sec. 11. Section 331.423, Code 2001, is amended by 5 10 striking the section and inserting in lieu thereof the 5 11 following: 5 12 331.423 PROPERTY TAX DOLLARS – MAXIMUMS. 5 13 1. Annually, the board shall determine separate property 5 14 tax levy limits to pay for general county services and rural 5 15 county services in accordance with this section. The property 5 16 tax levies separately certified for general county services 5 17 and rural county services in accordance with section 331.434 5 18 shall not exceed the amount determined under this section. 5 19 2. For purposes of this section and section 331.423A: 5 20 a. "Annual price index" means the change, computed to two 5 21 decimal places, between the preliminary price index for the 5 22 third quarter of the calendar year preceding the calendar year 5 23 in which the fiscal year starts and the revised price index 5 24 for the third quarter of the previous calendar year as 5 25 published in the same issue in which such preliminary price 5 26 index is first published. The price index used shall be the 5 27 state and local government chain-type price index used in the 5 28 quantity and price indexes for gross domestic product as 5 29 published by the United States department of commerce. The 5 30 annual price index shall not be less than zero and shall not 5 31 exceed four hundredths. The change shall then be added to one 5 32 to create a multiplier for the annual price index. 5 33 b. "Boundary adjustment" means annexation, severance, 5 34 incorporation, or discontinuance as those terms are defined in 5 35 section 368.1. 6 1 c. "Budget year" is the fiscal year beginning during the 6 2 calendar year in which a budget is first certified. 6 3 d. "Current fiscal year" is the fiscal year ending during 6 4 the calendar year in which a budget is first certified. 6 5 e. "Local sales and services taxes" means local sales and 6 6 services taxes imposed under the authority of chapter 422B. 6 7 f. "Net new valuation taxes" means the amount of property 6 8 tax dollars equal to the tentative maximum general rate for 6 9 purposes of the general fund, or the tentative maximum rural 6 10 rate for purposes of the rural services fund, times the 6 11 increase from the previous fiscal year in taxable valuation 6 12 due to the following: 6 13 (1) Net new construction. 6 14 (2) Additions or improvements to existing structures. 6 15 (3) Remodeling of existing structures for which a building 6 16 permit is required. 6 17 (4) Net boundary adjustment. 6 18 (5) A municipality no longer dividing tax revenues in an 6 19 urban renewal area as provided in section 403.19, to the 6 20 extent that the incremental valuation released is due to new 6 21 construction or revaluation on property newly constructed 6 22 after the division of revenue begins. 6 23 (6) That portion of taxable property located in an urban 6 24 revitalization area on which an exemption was allowed and such 6 25 exemption has expired. 6 26 g. "Property tax replacement dollars" means revenues 6 27 received under sections 427B.17 through 427B.19D, revenues 6 28 received under chapter 437A, subchapter II, and amounts 6 29 appropriated by the general assembly for property tax relief 6 30 first enacted for fiscal years beginning on or after July 1, 6 31 2001. 6 32 h. "Tentative maximum general rate" means the amount 6 33 calculated in subsection 3, paragraph "b", subparagraph (1), 6 34 divided by the net taxable valuation in the county. For 6 35 purposes of this paragraph, "net taxable valuation" is the 7 1 amount of taxable valuation in the county minus the amount of 7 2 taxable valuation used to calculate net new valuation taxes. 7 3 i. "Tentative maximum rural rate" means the amount 7 4 calculated in subsection 3, paragraph "c", subparagraph (1), 7 5 divided by the net taxable valuation in the unincorporated 7 6 area of the county. For purposes of this paragraph, "net 7 7 taxable valuation" is the amount of taxable valuation in the 7 8 unincorporated area of the county minus the amount of taxable 7 9 valuation in the unincorporated area of the county used to 7 10 calculate net new valuation taxes. 7 11 j. "Unused taxing authority" means the maximum amount of 7 12 property tax dollars calculated under subsection 3 for a 7 13 fiscal year minus the amount actually levied under this 7 14 section in that fiscal year. Unused taxing authority may be 7 15 carried forward to the following fiscal year. However, the 7 16 amount of unused taxing authority which may be carried forward 7 17 shall not exceed twenty-five percent of the maximum amount of 7 18 property tax dollars available in the current fiscal year. 7 19 3. a. Effective for the fiscal year beginning July 1, 7 20 2002, the maximum amount of property tax dollars levied which 7 21 may be certified by a county for general county services and 7 22 rural county services shall be the tentative maximum property 7 23 tax dollars calculated under paragraphs "b" and "c", 7 24 respectively, and adjusted by the amounts in paragraphs "d", 7 25 "e", and "f". 7 26 b. The tentative maximum property tax dollars for general 7 27 county services is an amount equal to the sum of the 7 28 following: 7 29 (1) The current fiscal year's tentative maximum property 7 30 tax dollars for general county services minus the unused 7 31 taxing authority carried forward from the previous fiscal year 7 32 times the annual price index. 7 33 (2) The amount of net new valuation taxes. 7 34 (3) The amount of unused taxing authority carried forward 7 35 from the previous fiscal year. 8 1 c. The tentative maximum property tax dollars for rural 8 2 county services is an amount equal to the sum of the 8 3 following: 8 4 (1) The current fiscal year's tentative maximum property 8 5 tax dollars for rural county services minus the unused taxing 8 6 authority carried forward from the previous fiscal year times 8 7 the annual price index. 8 8 (2) The amount of net new valuation taxes. 8 9 (3) The amount of unused taxing authority carried forward 8 10 from the previous fiscal year. 8 11 d. Subtract the amount of property tax replacement dollars 8 12 to be received for the budget year that will be deposited in 8 13 the general fund or the rural services fund, as applicable. 8 14 e. Subtract the amount of local sales and services taxes 8 15 for property tax relief estimated by the department of revenue 8 16 and finance to be received for the budget year that will be 8 17 deposited in the general fund or the rural services fund, as 8 18 applicable. 8 19 f. Subtract the amount of local sales and services taxes 8 20 received for property tax relief in the previous fiscal year 8 21 for the county general fund and rural services fund, and add 8 22 the amount of local sales and services taxes that was budgeted 8 23 for property tax relief for each of those funds in that fiscal 8 24 year. 8 25 4. The department of management shall adopt rules to 8 26 administer this section and section 331.423A after 8 27 consultation with the county finance committee. 8 28 Sec. 12. NEW SECTION. 331.423A BASE YEAR PROPERTY TAX 8 29 DOLLARS. 8 30 1. For purposes of calculating maximum property tax 8 31 dollars under section 331.423, the tentative maximum property 8 32 tax dollars for the fiscal year beginning July 1, 2000, for 8 33 general county services shall be calculated as provided in 8 34 this subsection. 8 35 a. The tentative maximum amount of property tax dollars 9 1 for general county services for taxes payable in the fiscal 9 2 year beginning July 1, 2000, shall be an amount equal to the 9 3 sum of the following, divided by three, and adjusted by the 9 4 amounts in paragraph "b": 9 5 (1) The sum of the amount of property taxes levied for 9 6 general county services and the amount of property tax 9 7 replacement dollars received and the amount of local sales and 9 8 services tax revenues received as property tax relief and 9 9 deposited in the general fund, all for the fiscal year 9 10 beginning July 1, 1997, times one and sixty-nine thousandths. 9 11 (2) The sum of the amount of property taxes levied for 9 12 general county services and the amount of property tax 9 13 replacement dollars received and the amount of local sales and 9 14 services tax revenues received as property tax relief and 9 15 deposited in the general fund, all for the fiscal year 9 16 beginning July 1, 1998, times one and forty-eight thousandths. 9 17 (3) The sum of the amount of property taxes levied for 9 18 general county services and the amount of property tax 9 19 replacement dollars received and the amount of local sales and 9 20 services tax revenues received as property tax relief and 9 21 deposited in the general fund, all for the fiscal year 9 22 beginning July 1, 1999, times one and twenty-six thousandths. 9 23 b. The amount in paragraph "a" shall be adjusted by 9 24 subtracting the amount of the ending fund balance differential 9 25 for general county services as provided in this paragraph. 9 26 The ending fund balance differential for general county 9 27 services is the difference between the general fund's ending 9 28 balance for the fiscal year beginning July 1, 1999, and the 9 29 general fund's ending balance for the fiscal year beginning 9 30 July 1, 1996, divided by three. 9 31 2. For purposes of calculating maximum property tax 9 32 dollars under section 331.423, the tentative maximum property 9 33 tax dollars for the fiscal year beginning July 1, 2000, for 9 34 rural county services shall be calculated as provided in this 9 35 subsection. 10 1 a. The tentative maximum amount of property tax dollars 10 2 for rural county services for taxes payable in the fiscal year 10 3 beginning July 1, 2000, shall be an amount equal to the sum of 10 4 the following, divided by three, and adjusted by the amounts 10 5 in paragraph "b": 10 6 (1) The sum of the amount of property taxes levied for 10 7 rural county services and the amount of property tax 10 8 replacement dollars received and the amount of local sales and 10 9 services tax revenues received as property tax relief and 10 10 deposited in the rural services fund, all for the fiscal year 10 11 beginning July 1, 1997, times one and sixty-nine thousandths. 10 12 (2) The sum of the amount of property taxes levied for 10 13 rural county services and the amount of property tax 10 14 replacement dollars received and the amount of local sales and 10 15 services tax revenues received as property tax relief and 10 16 deposited in the rural services fund, all for the fiscal year 10 17 beginning July 1, 1998, times one and forty-eight thousandths. 10 18 (3) The sum of the amount of property taxes levied for 10 19 rural county services and the amount of property tax 10 20 replacement dollars received and the amount of local sales and 10 21 services tax revenues received as property tax relief and 10 22 deposited in the rural services fund, all for the fiscal year 10 23 beginning July 1, 1999, times one and twenty-six thousandths. 10 24 b. The amount in paragraph "a" shall be adjusted by 10 25 subtracting the amount of the ending fund balance differential 10 26 for rural county services as provided in this paragraph. The 10 27 ending fund balance differential for rural county services is 10 28 the difference between the rural services fund's ending 10 29 balance for the fiscal year beginning July 1, 1999, and the 10 30 rural services fund's ending balance for the fiscal year 10 31 beginning July 1, 1996, divided by three. 10 32 3. a. The tentative maximum amount of property tax 10 33 dollars for general county services for taxes payable in the 10 34 fiscal year beginning July 1, 2001, is an amount equal to the 10 35 amount computed in subsection 1 times the annual price index 11 1 plus the amount of net new valuation taxes. 11 2 b. The tentative maximum amount of property tax dollars 11 3 for rural county services for taxes payable in the fiscal year 11 4 beginning July 1, 2001, is an amount equal to the amount 11 5 computed in subsection 2 times the annual price index plus the 11 6 amount of net new valuation taxes. 11 7 4. Each county shall calculate its tentative maximum 11 8 property tax dollars under this section on forms prescribed by 11 9 the department of management. 11 10 Sec. 13. NEW SECTION. 331.423B ENDING FUND BALANCE. 11 11 1. Budgeted ending fund balances for a fiscal year in 11 12 excess of twenty-five percent of budgeted expenditures in 11 13 either the general services fund or rural county services fund 11 14 for that fiscal year shall be explicitly reserved or 11 15 designated for a specific purpose and specifically described 11 16 in the certified budget. The description shall include the 11 17 projected date that the expenditures will be appropriated for 11 18 the specific purpose. In a protest to the county budget under 11 19 section 331.436, the county shall have the burden of proving 11 20 that the budgeted balances in excess of twenty-five percent 11 21 are reasonably likely to be appropriated for the explicitly 11 22 reserved or designated specific purpose by the date identified 11 23 in the certified budget. The excess budgeted balance for the 11 24 specific purpose shall be considered an increase in an item in 11 25 the budget for purposes of section 24.28. 11 26 2. For the fiscal year beginning July 1, 2002, the maximum 11 27 amount of property tax dollars limits separately established 11 28 in section 331.423 for general county services and rural 11 29 county services may be increased pursuant to this subsection. 11 30 The amount of the dollar increase is equal to twenty-five 11 31 percent of the combined budgeted expenditures for the general 11 32 fund and rural services fund minus the actual combined ending 11 33 balances of the general fund and the rural services fund for 11 34 the fiscal year beginning July 1, 2000. The amount of the 11 35 dollars increase for general county services and rural county 12 1 services shall be divided between the general fund and rural 12 2 services fund in proportion to the amount of actual 12 3 expenditures for general county services and for rural county 12 4 services for the fiscal year beginning July 1, 2000. The 12 5 balance of the increased limit may be successively carried 12 6 forward as unused taxing authority until and for the fiscal 12 7 year beginning July 1, 2007. Additionally, property taxes 12 8 that are levied as unused taxing authority under this 12 9 subsection may be the subject of a protest under section 12 10 331.436 and the amount will be considered an increase in an 12 11 item in the budget for purposes of section 24.28. 12 12 Sec. 14. Section 331.424, Code 2001, is amended by 12 13 striking the section and inserting in lieu thereof the 12 14 following: 12 15 331.424 AUTHORITY TO LEVY BEYOND MAXIMUM PROPERTY TAX 12 16 DOLLARS. 12 17 1. The board may certify additions to the maximum amount 12 18 of property tax dollars to be levied for a period of time not 12 19 to exceed two years if the proposition has been submitted at a 12 20 special election and received a favorable majority of the 12 21 votes cast on the proposition. However, a county shall not 12 22 proceed under this section if the additional property tax 12 23 dollars being sought are to fund a general county purpose or 12 24 an essential county purpose for which general obligation bonds 12 25 may be issued under section 331.442 or 331.443. 12 26 2. The special election is subject to the following: 12 27 a. The board must give at least thirty days' notice to the 12 28 county commissioner of elections that the special election is 12 29 to be held. 12 30 b. The special election shall be conducted by the county 12 31 commissioner of elections in accordance with law. 12 32 c. The proposition to be submitted shall be substantially 12 33 in the following form: 12 34 "Vote "yes" or "no" on the following: 12 35 Shall the county of _______ levy for an additional $_______ 13 1 each year for ___ years beginning July 1, _____, in excess of 13 2 the statutory limits otherwise applicable for the (general 13 3 county services or rural services) fund?" 13 4 d. The canvass shall be held beginning at one p.m. on the 13 5 second day which is not a holiday following the special 13 6 election. 13 7 e. Notice of the proposed special election shall be 13 8 published at least twice in a newspaper as specified in 13 9 section 331.305 prior to the date of the special election. 13 10 The first notice shall appear as early as practicable after 13 11 the board has voted to seek additional property tax dollars. 13 12 3. Registered voters in the county may vote on the 13 13 proposition to increase property taxes for the general fund in 13 14 excess of the statutory limit. Registered voters residing 13 15 outside the corporate limits of a city within the county may 13 16 vote on the proposition to increase property taxes for the 13 17 rural services fund in excess of the statutory limit. 13 18 Sec. 15. Section 331.424B, Code 2001, is amended to read 13 19 as follows: 13 20 331.424B CEMETERY LEVY. 13 21 The board may levy annually a tax not to exceed six and 13 22 three-fourths cents per thousand dollars of the assessed value 13 23 of all taxable property in the county to repair and maintain 13 24 all cemeteries under the jurisdiction of the board including 13 25 pioneer cemeteries and to pay other expenses of the board or 13 26 the cemetery commission as provided in section 331.325. The 13 27 proceeds of the tax levy shall be credited to thecounty13 28generalcemetery fund.Sections 444.25A and 444.25B do not13 29apply to the property tax levied or expended for cemeteries13 30pursuant to section 331.325.13 31 Sec. 16. Section 331.427, subsection 2, paragraph l, Code 13 32 2001, is amended to read as follows: 13 33 l. Services listed insection 331.424, subsection 1, and13 34 section 331.554. 13 35 Sec. 17. Section 331.428, subsection 2, paragraph d, Code 14 1 2001, is amended by striking the paragraph. 14 2 Sec. 18. Section 331.429, subsection 1, Code 2001, is 14 3 amended by adding the following new paragraph: 14 4 NEW PARAGRAPH. f. Notwithstanding paragraphs "a" and "b", 14 5 transfers from the general fund or rural services fund in 14 6 accordance with this paragraph. The board may transfer 14 7 additional funds from the general fund or rural services fund 14 8 in excess of the amounts in paragraphs "a" and "b" if the 14 9 proposition has been submitted at a special election and 14 10 received a favorable majority of the votes cast on the 14 11 proposition. The board shall direct the county commissioner 14 12 of elections to submit the proposition at an election. The 14 13 board must give at least thirty days' notice to the county 14 14 commissioner of elections that the special election is to be 14 15 held. For a transfer from the general fund, registered voters 14 16 of the county may vote on the proposition. For a transfer 14 17 from the rural services fund, registered voters of the county 14 18 residing outside the corporate limits of a city within the 14 19 county may vote on the proposition. The proposition to be 14 20 submitted shall be substantially in the following form: 14 21 "Vote "yes" or "no" on the following question: 14 22 Shall the county of _______ transfer an additional $______ 14 23 each year for two years beginning July 1, ____, from the 14 24 (general fund or rural services fund) to the secondary road 14 25 fund?" 14 26 If a majority of the votes cast are in favor of the 14 27 proposition, the board shall certify the results of the 14 28 election to the department of management and transfer the 14 29 approved amount to the secondary road fund in the appropriate 14 30 fiscal year. 14 31 Sec. 19. Section 384.1, Code 2001, is amended by striking 14 32 the section and inserting in lieu thereof the following: 14 33 384.1 PROPERTY TAX DOLLARS – MAXIMUMS. 14 34 1. A city shall certify taxes to be levied by the city on 14 35 all taxable property within the city limits, for all city 15 1 government purposes. Annually, the city council may certify 15 2 basic levies for city government purposes, subject to the 15 3 limitation on property tax dollars provided in this section. 15 4 2. For purposes of this section: 15 5 a. "Annual price index" means the change, computed to two 15 6 decimal places, between the preliminary price index for the 15 7 third quarter of the calendar year preceding the calendar year 15 8 in which the fiscal year starts and the revised price index 15 9 for the third quarter of the previous calendar year prior to 15 10 that as published in the same issue in which such preliminary 15 11 price index is first published. The price index used shall be 15 12 the state and local government chain-type price index used in 15 13 the quantity and price indexes for gross domestic product as 15 14 published by the United States department of commerce. The 15 15 annual price index shall not be less than zero and shall not 15 16 exceed four hundredths. The change shall then be added to one 15 17 to create a multiplier for the annual price index. 15 18 b. "Boundary adjustment" means annexation, severance, 15 19 incorporation, or discontinuance as those terms are defined in 15 20 section 368.1. 15 21 c. "Budget year" is the fiscal year beginning during the 15 22 calendar year in which a budget is certified. 15 23 d. "Current fiscal year" is the fiscal year ending during 15 24 the calendar year in which a budget is certified. 15 25 e. "Local sales and services taxes" means local sales and 15 26 services taxes imposed under the authority of chapter 422B. 15 27 f. "Net new valuation taxes" means the amount of property 15 28 tax dollars equal to the tentative maximum general rate for 15 29 city government purposes times the increase from the previous 15 30 year in taxable valuation due to the following: 15 31 (1) Net new construction. 15 32 (2) Additions or improvements to existing structures. 15 33 (3) Remodeling of existing structures for which a building 15 34 permit is required. 15 35 (4) Net boundary adjustment. 16 1 (5) A municipality no longer dividing tax revenues in an 16 2 urban renewal area as provided in section 403.19, to the 16 3 extent that the incremental valuation released is due to new 16 4 construction or revaluation on property newly constructed 16 5 after the division of revenue begins. 16 6 (6) That portion of taxable property located in an urban 16 7 revitalization area on which an exemption was allowed and such 16 8 exemption has expired. 16 9 g. "Property tax replacement dollars" means revenues 16 10 received under sections 427B.17 through 427B.19D, revenues 16 11 received under chapter 437A, subchapter II, and amounts 16 12 appropriated by the general assembly for property tax relief 16 13 first enacted for fiscal years beginning on or after July 1, 16 14 2001. 16 15 h. "Tentative maximum general rate" means the amount 16 16 calculated in subsection 3, paragraph "b", subparagraph (1), 16 17 divided by the net taxable valuation in the city. For 16 18 purposes of this paragraph, "net taxable valuation" is the 16 19 amount of taxable valuation in the city minus the amount of 16 20 taxable valuation in the city used to calculate net new 16 21 valuation taxes. 16 22 i. "Unused taxing authority" means the maximum amount of 16 23 property tax dollars calculated under subsection 3 for a 16 24 fiscal year minus the amount actually levied under this 16 25 section in that fiscal year. Unused taxing authority may be 16 26 carried forward to the following fiscal year. However, the 16 27 amount of unused taxing authority which may be carried forward 16 28 shall not exceed twenty-five percent of the maximum amount of 16 29 property tax dollars available in the current fiscal year. 16 30 3. a. Effective for the fiscal year beginning July 1, 16 31 2002, the maximum amount of property tax dollars which may be 16 32 certified by a city for city government purposes shall be the 16 33 tentative maximum property tax dollars calculated under 16 34 paragraph "b", and adjusted by the amounts in paragraphs "c", 16 35 "d", and "e". 17 1 b. The tentative maximum property tax dollars for city 17 2 government purposes is an amount equal to the sum of the 17 3 following: 17 4 (1) The current fiscal year's tentative maximum property 17 5 tax dollars for city government purposes minus the unused 17 6 taxing authority carried forward from the previous fiscal year 17 7 times the annual price index. 17 8 (2) The amount of net new valuation taxes. 17 9 (3) The amount of unused taxing authority carried forward 17 10 from the previous fiscal year. 17 11 c. Subtract the amount of property tax replacement dollars 17 12 to be received for the budget year that will be deposited in 17 13 the city general fund. 17 14 d. Subtract the amount of local sales and services taxes 17 15 for property tax relief estimated by the department of revenue 17 16 and finance to be received for the fiscal year for which the 17 17 maximum property tax dollars are being calculated that will be 17 18 deposited in the city general fund. 17 19 e. Subtract the amount of local sales and services taxes 17 20 received for property tax relief in the previous fiscal year 17 21 for the city general fund, and add the amount of local sales 17 22 and services taxes that was budgeted for property tax relief 17 23 for the city general fund in that fiscal year. 17 24 4. Notwithstanding the maximum amount of taxes a city may 17 25 certify for levy, the tax levied by a city on tracts of land 17 26 and improvements on the tracts of land used and assessed for 17 27 agricultural or horticultural purposes shall not exceed three 17 28 dollars and three-eighths cents per thousand dollars of 17 29 assessed value in any year. Improvements located on such 17 30 tracts of land and not used for agricultural or horticultural 17 31 purposes and all residential dwellings are subject to the same 17 32 rate of tax levied by the city on all other taxable property 17 33 within the city. 17 34 5. The department of management shall adopt rules to 17 35 administer this section and section 384.1A after consultation 18 1 with the city finance committee. 18 2 Sec. 20. NEW SECTION. 384.1A BASE YEAR PROPERTY TAX 18 3 DOLLARS. 18 4 1. For purposes of calculating maximum property tax 18 5 dollars under section 384.1, the tentative maximum property 18 6 tax dollars for the fiscal year beginning July 1, 2000, for 18 7 city government purposes shall be calculated as provided in 18 8 this subsection. 18 9 a. The tentative maximum amount of property tax dollars 18 10 for city government purposes for taxes payable in the fiscal 18 11 year beginning July 1, 2000, shall be an amount equal to the 18 12 sum of the following, divided by three, and adjusted by the 18 13 amounts in paragraph "b". 18 14 (1) The sum of the amount of property taxes levied for 18 15 city government purposes and the amount of property tax 18 16 replacement dollars received and the amount of local sales and 18 17 services tax revenues received as property tax relief 18 18 deposited in the city general fund all for the fiscal year 18 19 beginning July 1, 1997, times one and sixty-nine thousandths. 18 20 (2) The sum of the amount of property taxes levied for 18 21 city government purposes and the amount of property tax 18 22 replacement dollars received and the amount of local sales and 18 23 services tax revenues received as property tax relief 18 24 deposited in the city general fund all for the fiscal year 18 25 beginning July 1, 1998, times one and forty-eight thousandths. 18 26 (3) The sum of the amount of property taxes levied for 18 27 city government purposes and the amount of property tax 18 28 replacement dollars received and the amount of local sales and 18 29 services tax revenues received as property tax relief 18 30 deposited in the city general fund all for the fiscal year 18 31 beginning July 1, 1999, times one and twenty-six thousandths. 18 32 b. The amount in paragraph "a" shall be adjusted by 18 33 subtracting the amount of the ending fund balance differential 18 34 for city government purposes as provided in this paragraph. 18 35 The ending fund balance differential for city government 19 1 purposes is the difference between the city general fund's 19 2 ending balance for the fiscal year beginning July 1, 1999, and 19 3 the city general fund's ending balance for the fiscal year 19 4 beginning July 1, 1996, divided by three. 19 5 2. The tentative maximum amount of property tax dollars 19 6 for city government purposes for the fiscal year beginning 19 7 July 1, 2001, is an amount equal to the amount computed in 19 8 subsection 1 times the annual price index plus the amount of 19 9 net new valuation taxes. 19 10 3. Each city shall calculate its base year tentative 19 11 maximum property tax dollars and its maximum property tax 19 12 dollars under this section on forms prescribed by the 19 13 department of management. 19 14 Sec. 21. NEW SECTION. 384.1B ENDING FUND BALANCE. 19 15 1. Budgeted ending fund balances for a fiscal year in 19 16 excess of twenty-five percent of budgeted expenditures for 19 17 that fiscal year shall be explicitly reserved or designated 19 18 for a specific purpose and specifically described in the 19 19 certified budget. The description shall include the projected 19 20 date that the expenditures will be appropriated for the 19 21 specific purpose. In a protest to the city budget under 19 22 section 384.19, the city shall have the burden of proving that 19 23 the budgeted balances in excess of twenty-five percent are 19 24 reasonably likely to be appropriated for the explicitly 19 25 reserved or designated specific purpose by the date identified 19 26 in the certified budget. The excess budgeted balance for the 19 27 specific purpose shall be considered an increase in an item in 19 28 the budget for purposes of section 24.28. 19 29 2. For the fiscal year beginning July 1, 2002, the maximum 19 30 amount of property tax dollars established in sections 384.1 19 31 and 384.1A may be increased pursuant to this subsection. The 19 32 amount of the dollar increase is equal to twenty-five percent 19 33 of budgeted expenditures minus the actual ending balances for 19 34 the fiscal year beginning July 1, 2000. This amount of the 19 35 dollar increase may be successively carried forward as unused 20 1 taxing authority until and for the fiscal year beginning July 20 2 1, 2007. Additionally, property taxes that are levied as 20 3 unused taxing authority may be the subject of a protest under 20 4 section 384.19 and the amount will be considered an increase 20 5 in an item in the budget for purposes of section 24.28. 20 6 Sec. 22. Section 384.12, subsection 20, Code 2001, is 20 7 amended by striking the subsection. 20 8 Sec. 23. NEW SECTION. 384.12A AUTHORITY TO LEVY BEYOND 20 9 MAXIMUM PROPERTY TAX DOLLARS. 20 10 1. The city council may certify additions to the maximum 20 11 amount of property tax dollars to be levied for a period of 20 12 time not to exceed two years if the proposition has been 20 13 submitted at a special election and received a favorable 20 14 majority of the votes cast on the proposition. However, a 20 15 city shall not proceed under this section if the additional 20 16 property tax dollars being sought are to fund a general city 20 17 purpose or an essential city purpose for which general 20 18 obligation bonds may be issued under section 384.25 or 384.26. 20 19 2. The special election is subject to the following: 20 20 a. The city council must give at least thirty days' notice 20 21 to the county commissioner of elections that the special 20 22 election is to be held. 20 23 b. The special election shall be conducted by the county 20 24 commissioner of elections in accordance with law. 20 25 c. The proposition to be submitted shall be substantially 20 26 in the following form: 20 27 "Vote "yes" or "no" on the following: 20 28 Shall the city of _______ levy for an additional $_______ 20 29 each year for ___ years beginning next July 1, ____, in excess 20 30 of the statutory limits otherwise applicable for the city 20 31 general fund?" 20 32 d. The canvass shall be held beginning at one p.m. on the 20 33 second day which is not a holiday following the special 20 34 election. 20 35 e. Notice of the proposed special election shall be 21 1 published at least twice in a newspaper as specified in 21 2 section 362.3 prior to the date of the special election. The 21 3 first notice shall appear as early as practicable after the 21 4 city council has voted to seek additional property tax 21 5 dollars. 21 6 Sec. 24. Sections 331.425 and 331.426, Code 2001, are 21 7 repealed. 21 8 Sec. 25. APPLICABILITY DATE. This Act applies to the 21 9 fiscal year beginning July 1, 2002, and all subsequent fiscal 21 10 years. 21 11 EXPLANATION 21 12 This bill relates to the limitation on property taxes for 21 13 cities and counties by removing the property tax rate 21 14 limitations on cities and counties and substituting a 21 15 limitation on property tax dollars and by providing for state 21 16 funding of certain mandates imposed on political subdivisions. 21 17 The bill provides that if a new state mandate is imposed on 21 18 or after July 1, 2001, which requires engaging in a new 21 19 activity, providing a new service, or expanding a service 21 20 beyond what was required before July 1, 2001, the state 21 21 mandate must be fully funded. If the state mandate is not 21 22 fully funded, the affected political subdivisions are not 21 23 required to comply or implement the state mandate. Also, no 21 24 fines or penalties may be imposed on a political subdivision 21 25 for failure to comply or carry out an unfunded state mandate. 21 26 However, requirements relating to public employee 21 27 retirement systems under Code chapters 97B, 410, and 411, or 21 28 to the enforcement of Code chapter 321J or to the criminal 21 29 code pursuant to Code chapters 701 to 728, are not considered 21 30 state mandates. Also, requirements originating from the 21 31 federal government and administered, implemented, or enacted 21 32 by state law or rule are not considered state mandates. 21 33 This bill strikes Code section 25B.2, subsection 3, and 21 34 rewrites it as a new section outside the intent section of 21 35 Code chapter 25B. The rewritten section removes a qualifying 22 1 phrase which limits the circumstances under which a political 22 2 subdivision may fail to carry out an unfunded state mandate. 22 3 Community college and area education agency are added to the 22 4 definition of "political subdivision" as had been provided in 22 5 Code section 25B.2, subsection 3, which was stricken. 22 6 The bill removes the property tax rate limitations on 22 7 cities and counties and substitutes a limitation on the 22 8 maximum amount of property tax dollars which may be certified 22 9 by a city or county. 22 10 The bill requires each city and county to compute a maximum 22 11 property tax dollars base based on averages of three fiscal 22 12 years' worth of tax askings by the city or county multiplied 22 13 by a growth factor, i.e., price index, for each of the three 22 14 years. Adjustments are made for ending fund balance 22 15 differentials between the three years, amount of property tax 22 16 replacement dollars received for the three years, and amount 22 17 of local sales and services taxes received for the three 22 18 years, if applicable. 22 19 The bill provides that the base year calculation shall be 22 20 the maximum property tax base for the fiscal year beginning 22 21 July 1, 2002, as adjusted by the growth factor. Each year, 22 22 property tax replacement dollars to be received and local 22 23 sales and services taxes to be received are subtracted from 22 24 the amount of property taxes for the fiscal year to reach the 22 25 maximum amount of property taxes authorized to be levied for 22 26 the fiscal year. "Property tax replacement dollars" is 22 27 defined to mean revenues received from the utility delivery, 22 28 generation, and transmission taxes and the machinery and 22 29 equipment reimbursements to cities and counties and amounts 22 30 appropriated by the general assembly as property tax relief. 22 31 The bill provides that a city or county that has not levied 22 32 at its maximum for a year may carry forward the unused taxing 22 33 authority from year to year in an amount not to exceed 25 22 34 percent of the budget for the year. The bill also provides 22 35 that taxes from new valuation be added in separately. 23 1 The bill allows a city or county to exceed its maximum tax 23 2 authority for up to two years at a time if approved by the 23 3 voters at a special election. The bill also allows the 23 4 secondary road fund levy limits to be exceeded if approved by 23 5 the voters at a special election. 23 6 The bill provides that the ending fund balance for the city 23 7 general fund or for the county general and rural funds shall 23 8 not exceed 25 percent of the budget for the fiscal year. 23 9 Through fiscal year 07/08, cities and counties may levy unused 23 10 taxing authority based on the amount of the ending fund 23 11 balance for fiscal year 00/01. 23 12 The bill repeals the supplemental levy for counties and the 23 13 sections of the Code that currently allow cities and counties 23 14 to exceed their levy rate limitations. The bill gives 23 15 counties authority to establish a cemetery fund and trust and 23 16 agency funds. 23 17 The bill applies to fiscal years beginning July 1, 2002, 23 18 and all subsequent fiscal years. 23 19 LSB 1216SS 79 23 20 sc/cls/14.1
Text: SF00030 Text: SF00032 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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