Text: SF00225 Text: SF00227 Text: SF00200 - SF00299 Text: SF 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 2001, is amended by striking the paragraph. 1 3 Sec. 2. Section 24.27, Code 2001, is amended to read as 1 4 follows: 1 5 24.27 PROTEST TO BUDGET. 1 6 Not later than March 25 or April 25 if the municipality is 1 7 a school district, a number of persons in any municipality 1 8 equal to one-fourth of one percent of those voting for the 1 9 office of governor, at the last general election in the 1 10 municipality, but the number shall not be less than ten, and 1 11 the number need not be more than one hundred persons, who are 1 12 affected by any proposed budget, expenditure or tax levy, or 1 13 by any item thereof, may appeal from any decision of the 1 14 certifying board or the levying board by filing with the 1 15 county auditor of the county in which the municipal 1 16 corporation is located, a written protest setting forth their 1 17 objections to the budget, expenditure or tax levy, or to one 1 18 or more items thereof, and the grounds for their objections. 1 19 To be a valid protest at least one objector whose name appears 1 20 upon the written protest must have attended the budget hearing 1 21 scheduled pursuant to section 24.9. However, this requirement 1 22 shall not apply if an objector is protesting an item in the 1 23 budget that was changed or amended after the budget hearing. 1 24 If a budget is certified after March 15 or April 15 in the 1 25 case of a school district, all appeal time limits shall be 1 26 extended to correspond to allowances for a timely filing. 1 27 Upon the filing of a protest, the county auditor shall 1 28 immediately prepare a true and complete copy of the written 1 29 protest, together with the budget, proposed tax levy or 1 30 expenditure to which objections are made, and shall transmit 1 31 them forthwith to the state board, and shall also send a copy 1 32 of the protest to the certifying board or to the levying 1 33 board, as the case may be. 1 34 Sec. 3. Section 24.28, Code 2001, is amended to read as 1 35 follows: 2 1 24.28 HEARING ON PROTEST. 2 2 The state board, within a reasonable time, shall fix a date 2 3 for an initial hearing on the protest and may designate a 2 4 deputy to hold the hearing, which shall be held in the county 2 5 or in one of the counties in which the municipality is 2 6 located. Notice of the time and place of the hearing shall be 2 7 given by certified mail to the appropriate officials of the 2 8 local government and to the first ten property owners whose 2 9 names appear upon the protest, at least five days before the 2 10 date fixed for the hearing. At all hearings, the burden shall 2 11 be upon the objectors with reference to any proposed item in 2 12 the budget which was included in the budget of the previous 2 13 year and which the objectors propose should be reduced or 2 14 excluded; but the burden shall be upon the certifying board or 2 15 the levying board, as the case may be, to show that any new 2 16 item in the budget, or any increase in any item in the budget, 2 17 is necessary, reasonable, and in the interest of the public 2 18 welfare. The budget appeal shall be limited to the specific 2 19 issues raised by the objectors in the written protest unless 2 20 an item being protested at the appeal hearing was the result 2 21 of a change or amendment to the budget after the budget 2 22 hearing. 2 23 Sec. 4. Section 25B.2, subsection 3, Code 2001, is amended 2 24 by striking the subsection. 2 25 Sec. 5. Section 25B.3, subsection 1, Code 2001, is amended 2 26 to read as follows: 2 27 1. "Political subdivision" means a city, county, township, 2 28 community college, area education agency, or school district. 2 29 Sec. 6. NEW SECTION. 25B.5A UNFUNDED STATE MANDATES – 2 30 EFFECT. 2 31 If, on or after July 1, 2001, a state mandate is enacted by 2 32 the general assembly, or otherwise imposed, on a political 2 33 subdivision and the state mandate requires a political 2 34 subdivision to engage in any new activity, to provide a new 2 35 service, or to provide any service beyond that required by any 3 1 law enacted prior to July 1, 2001, and the state does not 3 2 appropriate moneys to fully fund the cost of the state mandate 3 3 as identified pursuant to section 25B.5, subsections 1 and 2, 3 4 the political subdivision is not required to perform the 3 5 activity or provide the service and the political subdivision 3 6 shall not be subject to any liabilities imposed by the state 3 7 or the imposition of any fines or penalties for the failure to 3 8 comply with the state mandate. 3 9 Sec. 7. Section 123.38, unnumbered paragraph 2, Code 2001, 3 10 is amended to read as follows: 3 11 Any licensee or permittee, or the licensee's or permittee's 3 12 executor or administrator, or any person duly appointed by the 3 13 court to take charge of and administer the property or assets 3 14 of the licensee or permittee for the benefit of the licensee's 3 15 or permittee's creditors, may voluntarily surrender a license 3 16 or permit to the division. When a license or permit is 3 17 surrendered the division shall notify the local authority, and 3 18 the division or the local authority shall refund to the person 3 19 surrendering the license or permit, a proportionate amount of 3 20 the fee received by the division or the local authority for 3 21 the license or permit as follows: if a license or permit is 3 22 surrendered during the first three months of the period for 3 23 which it was issued, the refund shall be three-fourths of the 3 24 amount of the fee; if surrendered more than three months but 3 25 not more than six months after issuance, the refund shall be 3 26 one-half of the amount of the fee; if surrendered more than 3 27 six months but not more than nine months after issuance, the 3 28 refund shall be one-fourth of the amount of the fee. No 3 29 refund shall be made, however, for any special liquor permit, 3 30 nor for a liquor control license, wine permit, or beer permit 3 31 surrendered more than nine months after issuance. For 3 32 purposes of this paragraph, any portion of license or permit 3 33 fees used for the purposes authorized in section331.424,3 34subsection 1, paragraphs "a" and "b", and in section331.424A,3 35 shall not be deemed received either by the division or by a 4 1 local authority. No refund shall be made to any licensee or 4 2 permittee, upon the surrender of the license or permit, if 4 3 there is at the time of surrender, a complaint filed with the 4 4 division or local authority, charging the licensee or 4 5 permittee with a violation of this chapter. If upon a hearing 4 6 on a complaint the license or permit is not revoked or 4 7 suspended, then the licensee or permittee is eligible, upon 4 8 surrender of the license or permit, to receive a refund as 4 9 provided in this section; but if the license or permit is 4 10 revoked or suspended upon hearing the licensee or permittee is 4 11 not eligible for the refund of any portion of the license or 4 12 permit fee. 4 13 Sec. 8. Section 218.99, Code 2001, is amended to read as 4 14 follows: 4 15 218.99 COUNTIES TO BE NOTIFIED OF PATIENTS' PERSONAL 4 16 ACCOUNTS. 4 17 The administrator in control of a state institution shall 4 18 direct the business manager of each institution under the 4 19 administrator's jurisdictionwhich is mentioned in section4 20331.424, subsection 1, paragraphs "a" and "b", andfor which 4 21 services are paid under section 331.424A, to quarterly inform 4 22 the county of legal settlement's entity designated to perform 4 23 the county's single entry point process of any patient or 4 24 resident who has an amount in excess of two hundred dollars on 4 25 account in the patients' personal deposit fund and the amount 4 26 on deposit. The administrators shall direct the business 4 27 manager to further notify the entity designated to perform the 4 28 county's single entry point process at least fifteen days 4 29 before the release of funds in excess of two hundred dollars 4 30 or upon the death of the patient or resident. If the patient 4 31 or resident has no county of legal settlement, notice shall be 4 32 made to the director of human services and the administrator 4 33 in control of the institution involved. 4 34 Sec. 9. Section 331.301, subsection 12, Code 2001, is 4 35 amended to read as follows: 5 1 12. The board of supervisors may credit funds to a reserve 5 2 for the purposes authorized by subsection 11 of this section;5 3section 331.424, subsection 1, paragraph "f";and section 5 4 331.441, subsection 2, paragraph "b". Moneys credited to the 5 5 reserve, and interest earned on such moneys, shall remain in 5 6 the reserve until expended for purposes authorized by 5 7 subsection 11 of this section; section 331.424, subsection 1,5 8paragraph "f";or section 331.441, subsection 2, paragraph 5 9 "b". 5 10 Sec. 10. Section 331.325, Code 2001, is amended to read as 5 11 follows: 5 12 331.325 CONTROL AND MAINTENANCE OF PIONEER CEMETERIES – 5 13 CEMETERY COMMISSION. 5 14 1. As used in this section, "pioneer cemetery" means a 5 15 cemetery where there have been six or fewer burials in the 5 16 preceding fifty years. 5 17 2. Each county board of supervisors may adopt an ordinance 5 18 assuming jurisdiction and control of pioneer cemeteries in the 5 19 county. The board shall exercise the powers and duties of 5 20 township trustees relating to the maintenance and repair of 5 21 cemeteries in the county as provided in sections 359.28 5 22 through 359.41 except that the board shall not certify a tax 5 23 levy pursuant to section 359.30 or 359.33 and except that the 5 24 maintenance and repair of all cemeteries under the 5 25 jurisdiction of the county including pioneer cemeteries shall 5 26 be paid from thecounty generalcemetery fund. The 5 27 maintenance and improvement program for a pioneer cemetery may 5 28 include restoration and management of native prairie grasses 5 29 and wildflowers. 5 30 3. In lieu of management of the cemeteries, the board of 5 31 supervisors may create, by ordinance, a cemetery commission to 5 32 assume jurisdiction and management of the pioneer cemeteries 5 33 in the county. The ordinance shall delineate the number of 5 34 commissioners, the appointing authority, the term of office, 5 35 officers, employees, organizational matters, rules of 6 1 procedure, compensation and expenses, and other matters deemed 6 2 pertinent by the board. The board may delegate any power and 6 3 duties relating to cemeteries which may otherwise be exercised 6 4 by township trustees pursuant to sections 359.28 through 6 5 359.41 to the cemetery commission except the commission shall 6 6 not certify a tax levy pursuant to section 359.30 or 359.33 6 7 and except that the expenses of the cemetery commission shall 6 8 be paid from thecounty generalcemetery fund. 6 9 4. Notwithstanding sections 359.30 and 359.33, the costs 6 10 of management, repair, and maintenance of pioneer cemeteries 6 11 shall be paid from thecounty generalcemetery fund. 6 12 Sec. 11. Section 331.421, subsections 1 and 10, Code 2001, 6 13 are amended by striking the subsections. 6 14 Sec. 12. Section 331.421, Code 2001, is amended by adding 6 15 the following new subsection: 6 16 NEW SUBSECTION. 7A. "Item" means a budgeted expenditure, 6 17 appropriation, or cash reserve from a fund for a service area, 6 18 program, program element, or purpose. 6 19 Sec. 13. Section 331.423, Code 2001, is amended by 6 20 striking the section and inserting in lieu thereof the 6 21 following: 6 22 331.423 PROPERTY TAX DOLLARS – MAXIMUMS. 6 23 1. Annually, the board shall determine separate property 6 24 tax levy limits to pay for general county services and rural 6 25 county services in accordance with this section. The property 6 26 tax levies separately certified for general county services 6 27 and rural county services in accordance with section 331.434 6 28 shall not exceed the amount determined under this section. 6 29 2. For purposes of this section and section 331.423A: 6 30 a. "Average annual price index" means the change, computed 6 31 to four decimal places, between the preliminary price index 6 32 for the third quarter of the calendar year preceding the 6 33 calendar year in which the fiscal year starts and the revised 6 34 price index for the third quarter of the previous calendar 6 35 year as published in the same issue in which such preliminary 7 1 price index is first published, repeated for each of the four 7 2 preceding calendar years. The sum of the changes for the five 7 3 years shall be divided by five to obtain a five-year average. 7 4 This average shall not be less than negative four hundredths 7 5 and not more than six hundredths. The price index used shall 7 6 be the state and local government chain-type price index used 7 7 in the quantity and price indexes for gross domestic product 7 8 as published by the United States department of commerce. The 7 9 change shall then be added to one to create a multiplier for 7 10 the annual price index. 7 11 b. "Boundary adjustment" means annexation, severance, 7 12 incorporation, or discontinuance as those terms are defined in 7 13 section 368.1. 7 14 c. "Budget year" is the fiscal year beginning during the 7 15 calendar year in which a budget is first certified. 7 16 d. "Current fiscal year" is the fiscal year ending during 7 17 the calendar year in which a budget is first certified. 7 18 e. "Local sales and services taxes" means local sales and 7 19 services taxes imposed under the authority of chapter 422B. 7 20 f. "Net new valuation taxes" means the amount of property 7 21 tax dollars equal to the tentative maximum general rate for 7 22 purposes of the general fund, or the tentative maximum rural 7 23 rate for purposes of the rural services fund, times the 7 24 increase from the previous fiscal year in taxable valuation 7 25 due to the following: 7 26 (1) Net new construction. 7 27 (2) Additions or improvements to existing structures. 7 28 (3) Remodeling of existing structures for which a building 7 29 permit is required. 7 30 (4) Net boundary adjustment. 7 31 (5) A municipality no longer dividing tax revenues in an 7 32 urban renewal area as provided in section 403.19, to the 7 33 extent that the incremental valuation released is due to new 7 34 construction or revaluation on property newly constructed 7 35 after the division of revenue begins. 8 1 (6) That portion of taxable property located in an urban 8 2 revitalization area on which an exemption was allowed and such 8 3 exemption has expired. 8 4 g. "Property tax replacement dollars" means revenues 8 5 received under sections 427B.17 through 427B.19D, revenues 8 6 received under chapter 437A, subchapter II, and amounts 8 7 appropriated by the general assembly for property tax relief 8 8 first enacted for fiscal years beginning on or after July 1, 8 9 2001. 8 10 h. "Tentative maximum general rate" means the amount 8 11 calculated in subsection 3, paragraph "b", subparagraph (1), 8 12 divided by the net taxable valuation in the county. For 8 13 purposes of this paragraph, "net taxable valuation" is the 8 14 amount of taxable valuation in the county minus the amount of 8 15 taxable valuation used to calculate net new valuation taxes. 8 16 i. "Tentative maximum rural rate" means the amount 8 17 calculated in subsection 3, paragraph "c", subparagraph (1), 8 18 divided by the net taxable valuation in the unincorporated 8 19 area of the county. For purposes of this paragraph, "net 8 20 taxable valuation" is the amount of taxable valuation in the 8 21 unincorporated area of the county minus the amount of taxable 8 22 valuation in the unincorporated area of the county used to 8 23 calculate net new valuation taxes. 8 24 j. "Unused taxing authority" means the maximum amount of 8 25 property tax dollars calculated under subsection 3 for a 8 26 fiscal year minus the amount actually levied under this 8 27 section in that fiscal year. Unused taxing authority may be 8 28 carried forward to the following fiscal year. However, the 8 29 amount of unused taxing authority which may be carried forward 8 30 shall not exceed twenty-five percent of the maximum amount of 8 31 property tax dollars available in the current fiscal year. 8 32 3. a. Effective for the fiscal year beginning July 1, 8 33 2002, the maximum amount of property tax dollars levied which 8 34 may be certified by a county for general county services and 8 35 rural county services shall be the tentative maximum property 9 1 tax dollars calculated under paragraphs "b" and "c", 9 2 respectively, and adjusted by the amounts in paragraphs "d", 9 3 "e", and "f". 9 4 b. The tentative maximum property tax dollars for general 9 5 county services is an amount equal to the sum of the 9 6 following: 9 7 (1) The current fiscal year's maximum property tax dollars 9 8 for general county services minus the unused taxing authority 9 9 carried forward from the previous fiscal year times the annual 9 10 price index. 9 11 (2) The amount of net new valuation taxes. 9 12 (3) The amount of unused taxing authority carried forward 9 13 from the previous fiscal year. 9 14 c. The tentative maximum property tax dollars for rural 9 15 county services is an amount equal to the sum of the 9 16 following: 9 17 (1) The current fiscal year's maximum property tax dollars 9 18 for rural county services minus the unused taxing authority 9 19 carried forward from the previous fiscal year times the annual 9 20 price index. 9 21 (2) The amount of net new valuation taxes. 9 22 (3) The amount of unused taxing authority carried forward 9 23 from the previous fiscal year. 9 24 d. Subtract the amount of property tax replacement dollars 9 25 to be received for the budget year that will be deposited in 9 26 the general fund or the rural services fund, as applicable. 9 27 e. Subtract the amount of local sales and services taxes 9 28 for property tax relief estimated by the department of revenue 9 29 and finance to be received for the budget year that will be 9 30 deposited in the general fund or the rural services fund, as 9 31 applicable. 9 32 f. Subtract the amount of local sales and services taxes 9 33 received for property tax relief in the previous fiscal year 9 34 for the county general fund and rural services fund, and add 9 35 the amount of local sales and services taxes that was budgeted 10 1 for property tax relief for each of those funds in that fiscal 10 2 year. 10 3 4. Property taxes certified for deposit in the mental 10 4 health, mental retardation, and developmental disabilities 10 5 services fund in section 331.424A, the cemetery fund in 10 6 section 331.424B, and the debt service fund in section 10 7 331.430, any capital projects fund established by the county 10 8 for deposit of bond, loan, or note proceeds, and any temporary 10 9 increase approved pursuant to section 331.424 are not counted 10 10 against the maximum amount of property tax dollars that may be 10 11 certified for a fiscal year under subsection 3. 10 12 5. The department of management shall adopt rules to 10 13 administer this section and section 331.423A after 10 14 consultation with the county finance committee. 10 15 Sec. 14. NEW SECTION. 331.423A BASE YEAR PROPERTY TAX 10 16 DOLLARS. 10 17 1. For purposes of calculating maximum property tax 10 18 dollars under section 331.423, the tentative maximum property 10 19 tax dollars for the fiscal year beginning July 1, 2000, for 10 20 general county services shall be calculated as provided in 10 21 this subsection. 10 22 a. The tentative maximum amount of property tax dollars 10 23 for general county services for taxes payable in the fiscal 10 24 year beginning July 1, 2000, shall be an amount equal to the 10 25 sum of the following, divided by three, and adjusted by the 10 26 amounts in paragraph "b": 10 27 (1) The sum of the amount of property taxes levied for 10 28 general county services and the amount of property tax 10 29 replacement dollars received and the amount of local sales and 10 30 services tax revenues received as property tax relief and 10 31 deposited in the general fund, all for the fiscal year 10 32 beginning July 1, 1997, times one and one hundred ten 10 33 thousandths. 10 34 (2) The sum of the amount of property taxes levied for 10 35 general county services and the amount of property tax 11 1 replacement dollars received and the amount of local sales and 11 2 services tax revenues received as property tax relief and 11 3 deposited in the general fund, all for the fiscal year 11 4 beginning July 1, 1998, times one and eighty-nine thousandths. 11 5 (3) The sum of the amount of property taxes levied for 11 6 general county services and the amount of property tax 11 7 replacement dollars received and the amount of local sales and 11 8 services tax revenues received as property tax relief and 11 9 deposited in the general fund, all for the fiscal year 11 10 beginning July 1, 1999, times one and sixty-seven thousandths. 11 11 b. The amount computed under the formula in paragraph "a" 11 12 shall be adjusted by subtracting the amount of the ending fund 11 13 balance differential for general county services as provided 11 14 in this paragraph. The ending fund balance differential for 11 15 general county services is the difference between the general 11 16 fund's ending balance for the fiscal year beginning July 1, 11 17 1999, and the general fund's ending balance for the fiscal 11 18 year beginning July 1, 1996, divided by three. 11 19 2. For purposes of calculating maximum property tax 11 20 dollars under section 331.423, the tentative maximum property 11 21 tax dollars for the fiscal year beginning July 1, 2000, for 11 22 rural county services shall be calculated as provided in this 11 23 subsection. 11 24 a. The tentative maximum amount of property tax dollars 11 25 for rural county services for taxes payable in the fiscal year 11 26 beginning July 1, 2000, shall be an amount equal to the sum of 11 27 the following, divided by three, and adjusted by the amounts 11 28 in paragraph "b": 11 29 (1) The sum of the amount of property taxes levied for 11 30 rural county services and the amount of property tax 11 31 replacement dollars received and the amount of local sales and 11 32 services tax revenues received as property tax relief and 11 33 deposited in the rural services fund, all for the fiscal year 11 34 beginning July 1, 1997, times one and sixty-nine thousandths. 11 35 (2) The sum of the amount of property taxes levied for 12 1 rural county services and the amount of property tax 12 2 replacement dollars received and the amount of local sales and 12 3 services tax revenues received as property tax relief and 12 4 deposited in the rural services fund, all for the fiscal year 12 5 beginning July 1, 1998, times one and forty-eight thousandths. 12 6 (3) The sum of the amount of property taxes levied for 12 7 rural county services and the amount of property tax 12 8 replacement dollars received and the amount of local sales and 12 9 services tax revenues received as property tax relief and 12 10 deposited in the rural services fund, all for the fiscal year 12 11 beginning July 1, 1999, times one and twenty-six thousandths. 12 12 b. The amount computed under the formula in paragraph "a" 12 13 shall be adjusted by subtracting the amount of the ending fund 12 14 balance differential for rural county services as provided in 12 15 this paragraph. The ending fund balance differential for 12 16 rural county services is the difference between the rural 12 17 services fund's ending balance for the fiscal year beginning 12 18 July 1, 1999, and the rural services fund's ending balance for 12 19 the fiscal year beginning July 1, 1996, divided by three. 12 20 3. a. The tentative maximum amount of property tax 12 21 dollars for general county services for taxes payable in the 12 22 fiscal year beginning July 1, 2001, is an amount equal to the 12 23 amount computed in subsection 1 times the annual price index 12 24 plus the amount of net new valuation taxes. 12 25 b. The tentative maximum amount of property tax dollars 12 26 for rural county services for taxes payable in the fiscal year 12 27 beginning July 1, 2001, is an amount equal to the amount 12 28 computed in subsection 2 times the annual price index plus the 12 29 amount of net new valuation taxes. 12 30 4. a. If the amount of property taxes certified for 12 31 general county services for the fiscal year beginning July 1, 12 32 2001, is one hundred four percent or less of the amount 12 33 certified for the fiscal year beginning July 1, 2000, the 12 34 amount computed in subsection 3, paragraph "a", shall be 12 35 multiplied by the change, computed to four decimal places, 13 1 between the preliminary price index for the fourth quarter of 13 2 calendar year 2000 and the third quarter of calendar year 13 3 2000. 13 4 b. If the amount of property taxes certified for rural 13 5 county services for the fiscal year beginning July 1, 2001, is 13 6 one hundred four percent or less of the amount certified for 13 7 the fiscal year beginning July 1, 2000, the amount computed in 13 8 subsection 3, paragraph "b", shall be multiplied by the 13 9 change, computed to four decimal places, between the 13 10 preliminary price index for the fourth quarter of calendar 13 11 year 2000 and the third quarter of calendar year 2000. 13 12 c. For purposes of this subsection, "price index" means as 13 13 that term is used in section 331.423, subsection 2. 13 14 5. Each county shall calculate its tentative maximum 13 15 property tax dollars under this section on forms prescribed by 13 16 the department of management. 13 17 Sec. 15. NEW SECTION. 331.423B ENDING FUND BALANCE. 13 18 1. Budgeted ending fund balances for a fiscal year in 13 19 excess of twenty-five percent of budgeted expenditures in 13 20 either the general services fund or rural county services fund 13 21 for that fiscal year shall be explicitly reserved or 13 22 designated for a specific purpose and specifically described 13 23 in the certified budget. The description shall include the 13 24 projected date that the expenditures will be appropriated for 13 25 the specific purpose. In a protest to the county budget under 13 26 section 331.436, the county shall have the burden of proving 13 27 that the budgeted balances in excess of twenty-five percent 13 28 are reasonably likely to be appropriated for the explicitly 13 29 reserved or designated specific purpose by the date identified 13 30 in the certified budget. The excess budgeted balance for the 13 31 specific purpose shall be considered an increase in an item in 13 32 the budget for purposes of section 24.28. 13 33 2. For a county that has, as of June 30, 2001, reduced its 13 34 ending fund balance to less than twenty-five percent of actual 13 35 expenditures, additional property taxes may be computed and 14 1 levied as provided in this subsection. The additional 14 2 property tax levy amount is an amount not to exceed the 14 3 difference between twenty-five percent of actual expenditures 14 4 from the general fund and rural services fund for the fiscal 14 5 year beginning July 1, 2000, minus the combined ending fund 14 6 balances for those funds for that year. The amount of the 14 7 additional property taxes shall be divided between the general 14 8 fund and the rural services fund in proportion to the amount 14 9 of actual expenditures for general county services to total 14 10 actual expenditures for general and rural county services for 14 11 the fiscal year beginning July 1, 2000, and in proportion to 14 12 the amount of actual expenditures for rural county services to 14 13 total actual expenditures for general and rural county 14 14 services for the fiscal year beginning July 1, 2000. However, 14 15 the amount apportioned for general county services and for 14 16 rural county services shall not exceed for each fund twenty- 14 17 five percent of actual expenditures for the fiscal year 14 18 beginning July 1, 2000. 14 19 All or a portion of additional property tax dollars may be 14 20 levied for the purpose of increasing cash reserves for general 14 21 county services and rural county services in the budget year. 14 22 The additional property tax dollars authorized under this 14 23 subsection but not levied may be carried forward as unused 14 24 ending fund balance taxing authority until and for the fiscal 14 25 year beginning July 1, 2007. The amount carried forward, when 14 26 combined with unused taxing authority shall not exceed twenty- 14 27 five percent of the maximum amount of property tax dollars 14 28 available in the current fiscal year. Additionally, property 14 29 taxes that are levied as unused ending fund balance taxing 14 30 authority under this subsection may be the subject of a 14 31 protest under section 331.436 and the amount will be 14 32 considered an increase in an item in the budget for purposes 14 33 of section 24.28. The amount of additional property taxes 14 34 levied under this subsection shall not be included in the 14 35 computation of the maximum amount of property tax dollars 15 1 which may be certified and levied under section 331.423. 15 2 Sec. 16. NEW SECTION. 331.423C UNFUNDED MANDATES FUND. 15 3 A county may establish an unfunded mandates fund and may 15 4 certify taxes not to exceed twenty-seven cents per thousand 15 5 dollars of taxable value each year to be levied for the fund. 15 6 A county may levy for the fund only to pay for an unfunded 15 7 state mandate as described in section 25B.5A and identified by 15 8 the general assembly in the enactment of the unfunded state 15 9 mandate. 15 10 The amount of property taxes levied under this section 15 11 shall not be included in the computation of the maximum amount 15 12 of property tax dollars which may be certified and levied 15 13 under section 331.423. 15 14 Sec. 17. Section 331.424, Code 2001, is amended by 15 15 striking the section and inserting in lieu thereof the 15 16 following: 15 17 331.424 AUTHORITY TO LEVY BEYOND MAXIMUM PROPERTY TAX 15 18 DOLLARS. 15 19 1. The board may certify additions to the maximum amount 15 20 of property tax dollars to be levied for a period of time not 15 21 to exceed two years if the proposition has been submitted at a 15 22 special election and received a favorable majority of the 15 23 votes cast on the proposition. 15 24 2. The special election is subject to the following: 15 25 a. The board must give at least thirty-two days' notice to 15 26 the county commissioner of elections that the special election 15 27 is to be held. 15 28 b. The special election shall be conducted by the county 15 29 commissioner of elections in accordance with law. 15 30 c. The proposition to be submitted shall be substantially 15 31 in the following form: 15 32 "Vote "yes" or "no" on the following: 15 33 Shall the county of _______ levy for an additional $_______ 15 34 each year for ___ years beginning July 1, _____, in excess of 15 35 the statutory limits otherwise applicable for the (general 16 1 county services or rural services) fund?" 16 2 d. The canvass shall be held beginning at one p.m. on the 16 3 second day which is not a holiday following the special 16 4 election. 16 5 e. Notice of the special election shall be published at 16 6 least once in a newspaper as specified in section 331.305 16 7 prior to the date of the special election. The notice shall 16 8 appear as early as practicable after the board has voted to 16 9 seek additional property tax dollars. 16 10 3. Registered voters in the county may vote on the 16 11 proposition to increase property taxes for the general fund in 16 12 excess of the statutory limit. Registered voters residing 16 13 outside the corporate limits of a city within the county may 16 14 vote on the proposition to increase property taxes for the 16 15 rural services fund in excess of the statutory limit. 16 16 4. The amount of additional property tax dollars certified 16 17 under this subsection shall not be included in the computation 16 18 of the maximum amount of property tax dollars which may be 16 19 certified and levied under section 331.423. 16 20 Sec. 18. Section 331.424B, Code 2001, is amended to read 16 21 as follows: 16 22 331.424B CEMETERY LEVY. 16 23 The board may levy annually a tax not to exceed six and 16 24 three-fourths cents per thousand dollars of the assessed value 16 25 of all taxable property in the county to repair and maintain 16 26 all cemeteries under the jurisdiction of the board including 16 27 pioneer cemeteries and to pay other expenses of the board or 16 28 the cemetery commission as provided in section 331.325. The 16 29 proceeds of the tax levy shall be credited to thecounty16 30generalcemetery fund.Sections 444.25A and 444.25B do not16 31apply to the property tax levied or expended for cemeteries16 32pursuant to section 331.325.16 33 Sec. 19. Section 331.427, subsection 2, paragraph l, Code 16 34 2001, is amended to read as follows: 16 35 l. Services listed insection 331.424, subsection 1, and17 1 section 331.554. 17 2 Sec. 20. Section 331.428, subsection 2, paragraph d, Code 17 3 2001, is amended by striking the paragraph. 17 4 Sec. 21. Section 331.429, subsection 1, Code 2001, is 17 5 amended by adding the following new paragraph: 17 6 NEW PARAGRAPH. f. Notwithstanding paragraphs "a" and "b", 17 7 transfers from the general fund or rural services fund in 17 8 accordance with this paragraph. The board may transfer 17 9 additional funds from the general fund or rural services fund 17 10 in excess of the amounts in paragraphs "a" and "b" if the 17 11 proposition has been submitted at a special election and 17 12 received a favorable majority of the votes cast on the 17 13 proposition. The board shall direct the county commissioner 17 14 of elections to submit the proposition at an election. The 17 15 board must give at least thirty-two days' notice to the county 17 16 commissioner of elections that the special election is to be 17 17 held. For a transfer from the general fund, registered voters 17 18 of the county may vote on the proposition. For a transfer 17 19 from the rural services fund, registered voters of the county 17 20 residing outside the corporate limits of a city within the 17 21 county may vote on the proposition. The proposition to be 17 22 submitted shall be substantially in the following form: 17 23 "Vote "yes" or "no" on the following question: 17 24 Shall the county of _______ transfer an additional $______ 17 25 each year for two years beginning July 1, ____, from the 17 26 (general fund or rural services fund) to the secondary road 17 27 fund?" 17 28 Notice of the special election shall be published at least 17 29 once in a newspaper in the manner provided in section 331.305. 17 30 Notice of the special election shall appear as early as 17 31 practicable after the board has voted to submit a proposition 17 32 to the voters to transfer funds from the general fund or rural 17 33 services fund to the secondary road fund. 17 34 If a majority of the votes cast are in favor of the 17 35 proposition, the board shall certify the results of the 18 1 election to the department of management and transfer the 18 2 approved amount to the secondary road fund in the appropriate 18 3 fiscal year. 18 4 Sec. 22. Section 384.1, Code 2001, is amended by striking 18 5 the section and inserting in lieu thereof the following: 18 6 384.1 PROPERTY TAX DOLLARS – MAXIMUMS. 18 7 1. A city shall certify taxes to be levied by the city on 18 8 all taxable property within the city limits, for all city 18 9 government purposes. Annually, the city council may certify 18 10 basic levies for city government purposes, subject to the 18 11 limitation on property tax dollars provided in this section. 18 12 2. For purposes of this section: 18 13 a. "Average annual price index" means the change, computed 18 14 to four decimal places, between the preliminary price index 18 15 for the third quarter of the calendar year preceding the 18 16 calendar year in which the fiscal year starts and the revised 18 17 price index for the third quarter of the previous calendar 18 18 year prior to that as published in the same issue in which 18 19 such preliminary price index is first published, repeated for 18 20 each of the four preceding calendar years. The sum of the 18 21 changes for the five years shall be divided by five to obtain 18 22 a five-year average. This average shall not be less than 18 23 negative four hundredths and not more than six hundredths. 18 24 The price index used shall be the state and local government 18 25 chain-type price index used in the quantity and price indexes 18 26 for gross domestic product as published by the United States 18 27 department of commerce. The change shall then be added to one 18 28 to create a multiplier for the annual price index. 18 29 b. "Boundary adjustment" means annexation, severance, 18 30 incorporation, or discontinuance as those terms are defined in 18 31 section 368.1. 18 32 c. "Budget year" is the fiscal year beginning during the 18 33 calendar year in which a budget is certified. 18 34 d. "Current fiscal year" is the fiscal year ending during 18 35 the calendar year in which a budget is certified. 19 1 e. "Local sales and services taxes" means local sales and 19 2 services taxes imposed under the authority of chapter 422B. 19 3 f. "Net new valuation taxes" means the amount of property 19 4 tax dollars equal to the tentative maximum general rate for 19 5 city government purposes times the increase from the previous 19 6 year in taxable valuation due to the following: 19 7 (1) Net new construction. 19 8 (2) Additions or improvements to existing structures. 19 9 (3) Remodeling of existing structures for which a building 19 10 permit is required. 19 11 (4) Net boundary adjustment. 19 12 (5) A municipality no longer dividing tax revenues in an 19 13 urban renewal area as provided in section 403.19, to the 19 14 extent that the incremental valuation released is due to new 19 15 construction or revaluation on property newly constructed 19 16 after the division of revenue begins. 19 17 (6) That portion of taxable property located in an urban 19 18 revitalization area on which an exemption was allowed and such 19 19 exemption has expired. 19 20 g. "Property tax replacement dollars" means revenues 19 21 received under sections 427B.17 through 427B.19D, revenues 19 22 received under chapter 437A, subchapter II, and amounts 19 23 appropriated by the general assembly for property tax relief 19 24 first enacted for fiscal years beginning on or after July 1, 19 25 2001. 19 26 h. "Tentative maximum general rate" means the amount 19 27 calculated in subsection 3, paragraph "b", subparagraph (1), 19 28 divided by the net taxable valuation in the city. For 19 29 purposes of this paragraph, "net taxable valuation" is the 19 30 amount of taxable valuation in the city minus the amount of 19 31 taxable valuation in the city used to calculate net new 19 32 valuation taxes. 19 33 i. "Unused taxing authority" means the maximum amount of 19 34 property tax dollars calculated under subsection 3 for a 19 35 fiscal year minus the amount actually levied under this 20 1 section in that fiscal year. Unused taxing authority may be 20 2 carried forward to the following fiscal year. However, the 20 3 amount of unused taxing authority which may be carried forward 20 4 shall not exceed twenty-five percent of the maximum amount of 20 5 property tax dollars available in the current fiscal year. 20 6 3. a. Effective for the fiscal year beginning July 1, 20 7 2002, the maximum amount of property tax dollars which may be 20 8 certified by a city for city government purposes shall be the 20 9 tentative maximum property tax dollars calculated under 20 10 paragraph "b", and adjusted by the amounts in paragraphs "c", 20 11 "d", and "e". 20 12 b. The tentative maximum property tax dollars for city 20 13 government purposes is an amount equal to the sum of the 20 14 following: 20 15 (1) The current fiscal year's maximum property tax dollars 20 16 for city government purposes minus the unused taxing authority 20 17 carried forward from the previous fiscal year times the annual 20 18 price index. 20 19 (2) The amount of net new valuation taxes. 20 20 (3) The amount of unused taxing authority carried forward 20 21 from the previous fiscal year. 20 22 c. Subtract the amount of property tax replacement dollars 20 23 to be received for the budget year that will be deposited in 20 24 the city general fund. 20 25 d. Subtract the amount of local sales and services taxes 20 26 for property tax relief estimated by the department of revenue 20 27 and finance to be received for the budget year that will be 20 28 deposited in the city general fund. 20 29 e. Subtract the amount of local sales and services taxes 20 30 received for property tax relief in the previous fiscal year 20 31 for the city general fund, and add the amount of local sales 20 32 and services taxes that was budgeted for property tax relief 20 33 for the city general fund in that fiscal year. 20 34 4. Property taxes certified for deposit in the debt 20 35 service fund in section 384.4, trust and agency funds in 21 1 section 384.6, capital improvements reserve fund in section 21 2 384.7, the emergency fund in section 384.8, any capital 21 3 projects fund established by the city for deposit of bond, 21 4 loan, or note proceeds, any temporary increase approved 21 5 pursuant to section 384.12A, property taxes collected from a 21 6 voted levy in section 384.12, and property taxes levied under 21 7 section 384.12, subsection 18, are not counted against the 21 8 maximum amount of property tax dollars that may be certified 21 9 for a fiscal year under subsection 3. 21 10 5. Notwithstanding the maximum amount of taxes a city may 21 11 certify for levy, the tax levied by a city on tracts of land 21 12 and improvements on the tracts of land used and assessed for 21 13 agricultural or horticultural purposes shall not exceed three 21 14 dollars and three-eighths cents per thousand dollars of 21 15 assessed value in any year. Improvements located on such 21 16 tracts of land and not used for agricultural or horticultural 21 17 purposes and all residential dwellings are subject to the same 21 18 rate of tax levied by the city on all other taxable property 21 19 within the city. 21 20 6. The department of management shall adopt rules to 21 21 administer this section and section 384.1A after consultation 21 22 with the city finance committee. 21 23 Sec. 23. NEW SECTION. 384.1A BASE YEAR PROPERTY TAX 21 24 DOLLARS. 21 25 1. For purposes of calculating maximum property tax 21 26 dollars under section 384.1, the tentative maximum property 21 27 tax dollars for the fiscal year beginning July 1, 2000, for 21 28 city government purposes shall be calculated as provided in 21 29 this subsection. 21 30 a. The tentative maximum amount of property tax dollars 21 31 for city government purposes for taxes payable in the fiscal 21 32 year beginning July 1, 2000, shall be an amount equal to the 21 33 sum of the following, divided by three, and adjusted by the 21 34 amounts in paragraph "b". 21 35 (1) The sum of the amount of property taxes levied for 22 1 city government purposes and the amount of property tax 22 2 replacement dollars received and the amount of local sales and 22 3 services tax revenues received as property tax relief 22 4 deposited in the city general fund all for the fiscal year 22 5 beginning July 1, 1997, times one and one hundred ten 22 6 thousandths. 22 7 (2) The sum of the amount of property taxes levied for 22 8 city government purposes and the amount of property tax 22 9 replacement dollars received and the amount of local sales and 22 10 services tax revenues received as property tax relief 22 11 deposited in the city general fund all for the fiscal year 22 12 beginning July 1, 1998, times one and eighty-nine thousandths. 22 13 (3) The sum of the amount of property taxes levied for 22 14 city government purposes and the amount of property tax 22 15 replacement dollars received and the amount of local sales and 22 16 services tax revenues received as property tax relief 22 17 deposited in the city general fund all for the fiscal year 22 18 beginning July 1, 1999, times one and sixty-seven thousandths. 22 19 b. The amount computed under the formula in paragraph "a" 22 20 shall be adjusted by subtracting the amount of the ending fund 22 21 balance differential for city government purposes as provided 22 22 in this paragraph. The ending fund balance differential for 22 23 city government purposes is the difference between the city 22 24 general fund's ending balance for the fiscal year beginning 22 25 July 1, 1999, and the city general fund's ending balance for 22 26 the fiscal year beginning July 1, 1996, divided by three. 22 27 2. The tentative maximum amount of property tax dollars 22 28 for city government purposes for the fiscal year beginning 22 29 July 1, 2001, is an amount equal to the amount computed in 22 30 subsection 1 times the annual price index plus the amount of 22 31 net new valuation taxes. 22 32 3. a. If the amount of property taxes certified for city 22 33 government purposes for the fiscal year beginning July 1, 22 34 2001, is one hundred four percent or less of the amount 22 35 certified for the fiscal year beginning July 1, 2000, the 23 1 amount computed in subsection 2 shall be multiplied by the 23 2 change, computed to four decimal places, between the 23 3 preliminary price index for the fourth quarter of calendar 23 4 year 2000 and the third quarter of calendar year 2000. 23 5 b. For purposes of this subsection, "price index" means as 23 6 that term is used in section 384.1, subsection 2. 23 7 4. Each city shall calculate its base year tentative 23 8 maximum property tax dollars and its maximum property tax 23 9 dollars under this section on forms prescribed by the 23 10 department of management. 23 11 Sec. 24. NEW SECTION. 384.1B ENDING FUND BALANCE. 23 12 1. Budgeted ending fund balances for a fiscal year in 23 13 excess of twenty-five percent of budgeted expenditures for 23 14 that fiscal year shall be explicitly reserved or designated 23 15 for a specific purpose and specifically described in the 23 16 certified budget. The description shall include the projected 23 17 date that the expenditures will be appropriated for the 23 18 specific purpose. In a protest to the city budget under 23 19 section 384.19, the city shall have the burden of proving that 23 20 the budgeted balances in excess of twenty-five percent are 23 21 reasonably likely to be appropriated for the explicitly 23 22 reserved or designated specific purpose by the date identified 23 23 in the certified budget. The excess budgeted balance for the 23 24 specific purpose shall be considered an increase in an item in 23 25 the budget for purposes of section 24.28. 23 26 2. For a city that has, as of June 30, 2001, reduced its 23 27 ending fund balance to less than twenty-five percent of actual 23 28 expenditures, additional property taxes may be computed and 23 29 levied as provided in this subsection. The additional 23 30 property tax levy amount is an amount not to exceed the 23 31 difference between twenty-five percent of actual expenditures 23 32 for city government purposes for the fiscal year beginning 23 33 July 1, 2000, minus the ending fund balance for that year. 23 34 All or a portion of additional property tax dollars may be 23 35 levied for the purpose of increasing cash reserves for city 24 1 government purposes in the budget year. The additional 24 2 property tax dollars authorized under this subsection but not 24 3 levied may be carried forward as unused ending fund balance 24 4 taxing authority until and for the fiscal year beginning July 24 5 1, 2007. The amount carried forward, when combined with 24 6 unused taxing authority shall not exceed twenty-five percent 24 7 of the maximum amount of property tax dollars available in the 24 8 current fiscal year. Additionally, property taxes that are 24 9 levied under this subsection may be the subject of a protest 24 10 under section 384.19 and the amount will be considered an 24 11 increase in an item in the budget for purposes of section 24 12 24.28. The amount of additional property tax dollars levied 24 13 under this subsection shall not be included in the computation 24 14 of the maximum amount of property tax dollars which may be 24 15 certified and levied under section 384.1. 24 16 Sec. 25. NEW SECTION. 384.1C UNFUNDED MANDATES FUND. 24 17 A city may establish an unfunded mandates fund and may 24 18 certify taxes not to exceed twenty-seven cents per thousand 24 19 dollars of taxable value each year to be levied for the fund. 24 20 A city may levy for the fund only to pay for an unfunded state 24 21 mandate as described in section 25B.5A and identified by the 24 22 general assembly in the enactment of the unfunded state 24 23 mandate. 24 24 The amount of additional property tax dollars levied under 24 25 this subsection shall not be included in the computation of 24 26 the maximum amount of property tax dollars which may be 24 27 certified and levied under section 384.1. 24 28 Sec. 26. Section 384.12, subsection 20, Code 2001, is 24 29 amended by striking the subsection. 24 30 Sec. 27. NEW SECTION. 384.12A AUTHORITY TO LEVY BEYOND 24 31 MAXIMUM PROPERTY TAX DOLLARS. 24 32 1. The city council may certify additions to the maximum 24 33 amount of property tax dollars to be levied for a period of 24 34 time not to exceed two years if the proposition has been 24 35 submitted at a special election and received a favorable 25 1 majority of the votes cast on the proposition. 25 2 2. The special election is subject to the following: 25 3 a. The city council must give at least thirty-two days' 25 4 notice to the county commissioner of elections that the 25 5 special election is to be held. 25 6 b. The special election shall be conducted by the county 25 7 commissioner of elections in accordance with law. 25 8 c. The proposition to be submitted shall be substantially 25 9 in the following form: 25 10 "Vote "yes" or "no" on the following: 25 11 Shall the city of _______ levy for an additional $_______ 25 12 each year for ___ years beginning next July 1, ____, in excess 25 13 of the statutory limits otherwise applicable for the city 25 14 general fund?" 25 15 d. The canvass shall be held beginning at one p.m. on the 25 16 second day which is not a holiday following the special 25 17 election. 25 18 e. Notice of the special election shall be published at 25 19 least once in a newspaper as specified in section 362.3 prior 25 20 to the date of the special election. The notice shall appear 25 21 as early as practicable after the city council has voted to 25 22 seek additional property tax dollars. 25 23 3. The amount of additional property tax dollars levied 25 24 under subsection 2 shall not be included in the computation of 25 25 the maximum amount of property tax dollars which may be 25 26 certified and levied under section 384.1. 25 27 Sec. 28. Section 384.19, Code 2001, is amended by adding 25 28 the following new unnumbered paragraph: 25 29 NEW UNNUMBERED PARAGRAPH. For purposes of a tax protest 25 30 filed under this section, "item" means a budgeted expenditure, 25 31 appropriation, or cash reserve from a fund for a service area, 25 32 program, program element, or purpose. 25 33 Sec. 29. Section 427.1, subsection 19, unnumbered 25 34 paragraph 8, Code 2001, is amended to read as follows: 25 35 For the purposes of this subsection "pollution-control 26 1 property" means personal property or improvements to real 26 2 property, or any portion thereof, used primarily to control or 26 3 abate pollution of any air or water of this state or used 26 4 primarily to enhance the quality of any air or water of this 26 5 state and "recycling property" means personal property or 26 6 improvements to real property or any portion of the property, 26 7 used primarily in the manufacturing process and resulting 26 8 directly in the conversion of waste plastic, wastepaper 26 9 products, or waste paperboard, into new raw materials or 26 10 products composed primarily of recycled material. In the 26 11 event such property shall also serve other purposes or uses of 26 12 productive benefit to the owner of the property, only such 26 13 portion of the assessed valuation thereof as may reasonably be 26 14 calculated to be necessary for and devoted to the control or 26 15 abatement of pollution, to the enhancement of the quality of 26 16 the air or water of this state, or for recycling shall be 26 17 exempt from taxation under this subsection. "Pollution- 26 18 control property" and "recycling property" do not include 26 19 property used for purposes related to the care and feeding of 26 20 livestock as defined in section 169C.1, except for property 26 21 which is eligible for a family farm tax credit as provided in 26 22 chapter 425A. 26 23 The exemption calculated for pollution control or recycling 26 24 property used for purposes related to the care and feeding of 26 25 livestock as defined in section 169C.1, and which is eligible 26 26 for a family farm tax credit as provided in chapter 425A, is 26 27 limited to the first one hundred thousand dollars in assessed 26 28 value. 26 29 Sec. 30. Sections 331.425 and 331.426, Code 2001, are 26 30 repealed. 26 31 Sec. 31. IOWA STATE UNIVERSITY STUDY. It is the intent of 26 32 the general assembly to provide local governments with the 26 33 means and flexibility of providing services to its citizens 26 34 while balancing citizens' concerns about high taxes. It is 26 35 further the intent of the general assembly to put in place a 27 1 property tax system that reflects the modern economy. 27 2 Iowa state university department of economics shall conduct 27 3 a review of revenue sources available to local governments in 27 4 Iowa, including taxes, fees, state appropriations, and federal 27 5 moneys. The department of economics shall also review recent 27 6 and historical statewide trends in property tax collections 27 7 and in revenue collections by local governments generally. 27 8 The review shall be conducted from the standpoint of equity, 27 9 neutrality, competitiveness, simplicity, stability, and any 27 10 other factors deemed appropriate and informative by the 27 11 department. The department may request from any state agency 27 12 or official the information and assistance needed to perform 27 13 the review. 27 14 Iowa state university department of economics shall submit 27 15 a final report and an executive summary of the final report to 27 16 the general assembly no later than January 15, 2002. The 27 17 final report and executive summary shall include 27 18 recommendations on changes to the property tax system that 27 19 would result in greater simplification of the system, while 27 20 maintaining or increasing equity in the system. 27 21 Sec. 32. APPLICABILITY DATE. This Act applies to the 27 22 fiscal year beginning July 1, 2002, and all subsequent fiscal 27 23 years. 27 24 EXPLANATION 27 25 This bill relates to the limitation on property taxes for 27 26 cities and counties by removing the property tax rate 27 27 limitations on cities and counties and substituting a 27 28 limitation on property tax dollars, by providing for state 27 29 funding of certain mandates imposed on political subdivisions, 27 30 and by amending provisions related to the local budget process 27 31 and to the pollution control exemption. 27 32 The bill provides that if a written protest is submitted on 27 33 a local government budget, at least one of the objectors to 27 34 the budget must have attended the budget hearing unless the 27 35 item being protested was changed or amended after the budget 28 1 hearing. The bill also provides that a budget appeal is 28 2 limited to the specific issues raised in the written protest 28 3 unless an item being protested was amended or changed after 28 4 the budget hearing. 28 5 The bill provides that if a new state mandate is imposed on 28 6 or after July 1, 2001, which requires engaging in a new 28 7 activity, providing a new service, or expanding a service 28 8 beyond what was required before July 1, 2001, the state 28 9 mandate must be fully funded. If the state mandate is not 28 10 fully funded, the affected political subdivisions are not 28 11 required to comply or implement the state mandate. Also, no 28 12 fines or penalties may be imposed on a political subdivision 28 13 for failure to comply or carry out an unfunded state mandate. 28 14 The bill strikes Code section 25B.2, subsection 3, and 28 15 rewrites it as a new section outside the intent section of 28 16 Code chapter 25B. The rewritten section removes a qualifying 28 17 phrase which limits the circumstances under which a political 28 18 subdivision may fail to carry out an unfunded state mandate. 28 19 Community college and area education agency are added to the 28 20 definition of "political subdivision" as had been provided in 28 21 Code section 25B.2, subsection 3, which was stricken. 28 22 The bill creates an unfunded mandate fund limited to 27 28 23 cents per $1,000 of taxable value to pay for unfunded 28 24 mandates. 28 25 The bill removes the property tax rate limitations on 28 26 cities and counties and substitutes a limitation on the 28 27 maximum amount of property tax dollars which may be certified 28 28 by a city or county. 28 29 The bill requires each city and county to compute a maximum 28 30 property tax dollars base based on averages of three fiscal 28 31 years' worth of tax askings by the city or county multiplied 28 32 by a growth factor, i.e., price index, for four years. 28 33 Adjustments are made for ending fund balance differentials 28 34 between fiscal years 1996-1997 and 1999-2000, amount of 28 35 property tax replacement dollars received for the three years, 29 1 and amount of local sales and services taxes received for the 29 2 three years, if applicable. A further inflationary increase 29 3 is allowed if a city or county budget was increased by 4 29 4 percent or less from fiscal year 2000-2001 to fiscal year 29 5 2001-2002. 29 6 The bill provides that the base year calculation shall be 29 7 the maximum property tax base for the fiscal year beginning 29 8 July 1, 2002, as adjusted by the growth factor. Each year, 29 9 property tax replacement dollars to be received and local 29 10 sales and services taxes to be received are subtracted from 29 11 the amount of property taxes for the fiscal year to reach the 29 12 maximum amount of property taxes authorized to be levied for 29 13 the fiscal year. "Property tax replacement dollars" is 29 14 defined to mean revenues received from the utility delivery, 29 15 generation, and transmission taxes and the machinery and 29 16 equipment reimbursements to cities and counties and amounts 29 17 appropriated by the general assembly as property tax relief. 29 18 The bill provides that a city or county that has not levied 29 19 at its maximum for a year may carry forward the unused taxing 29 20 authority from year to year in an amount not to exceed 25 29 21 percent of the budget for the year. The bill also provides 29 22 that taxes from new valuation be added in separately. 29 23 The bill provides that property taxes certified for deposit 29 24 in specified funds created by cities and counties are not 29 25 counted in the computation of maximum property taxes. 29 26 The bill allows a city or county to exceed its maximum tax 29 27 authority for up to two years at a time if approved by the 29 28 voters at a special election. The bill also allows the 29 29 secondary road fund levy limits to be exceeded if approved by 29 30 the voters at a special election. 29 31 The bill provides that the ending fund balance for the city 29 32 general fund or for the county general and rural funds shall 29 33 not exceed 25 percent of the budget for the fiscal year. 29 34 Through fiscal year 2007-2008, cities and counties may levy 29 35 unused taxing authority based on the amount of the ending fund 30 1 balance for fiscal year 2000-2001. 30 2 The bill repeals the supplemental levy for counties and the 30 3 sections of the Code that currently allow cities and counties 30 4 to exceed their levy rate limitations. The bill gives 30 5 counties authority to establish a cemetery fund and trust and 30 6 agency funds. 30 7 The bill amends the pollution control property tax 30 8 exemption to allow only certain livestock facilities that are 30 9 also eligible for the family farm property tax credit to 30 10 receive the exemption. The exemption is limited to the first 30 11 $100,000 of assessed value. 30 12 The bill requires the department of economics at Iowa state 30 13 university to conduct a review of revenue sources available to 30 14 local governments. The department is to review recent and 30 15 historical statewide trends in property tax collections and in 30 16 revenue collections by local governments generally. The bill 30 17 requires the department of economics to furnish a report and 30 18 executive summary to the general assembly no later than 30 19 January 15, 2002. The report and summary are to include 30 20 recommendations on changes to the property tax system. 30 21 The bill applies to fiscal years beginning July 1, 2002, 30 22 and all subsequent fiscal years. 30 23 LSB 1216SV 79 30 24 sc/cls/14
Text: SF00225 Text: SF00227 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 2001 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed May 9 09:40:00 CDT 2001
URL: /DOCS/GA/79GA/Legislation/SF/00200/SF00226/010219.html
jhf