Text: SSB01189 Text: SSB01191 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 24.48, unnumbered paragraphs 4, 5, and 1 2 7, Code 2003, are amended by striking the unnumbered 1 3 paragraphs. 1 4 Sec. 2. Section 24.48, unnumbered paragraph 6, Code 2003, 1 5 is amended to read as follows: 1 6 For purposes of this section only, "political subdivision" 1 7 means acity,school district,or any other special purpose 1 8 district which certifies its budget to the county auditor and 1 9 derives funds from a property tax levied against taxable 1 10 property situated within the political subdivision, except 1 11 that it does not mean a city or a county. 1 12 Sec. 3. Section 25B.7, Code 2003, is amended by adding the 1 13 following new subsection: 1 14 NEW SUBSECTION. 4. Beginning with property taxes due and 1 15 payable in the fiscal year beginning July 1, 2004, the state 1 16 appropriation made to fund a property tax credit or exemption 1 17 shall not be reduced from the appropriation made for the 1 18 property tax credit or exemption for the prior fiscal year 1 19 unless the reduced appropriation receives approval of three- 1 20 fifths of the members of each house of the general assembly. 1 21 The property tax credits and exemptions subject to this 1 22 section include, but are not limited to, the following: 1 23 a. Homestead tax credit pursuant to sections 425.1 through 1 24 425.15. 1 25 b. Low-income property tax credit and elderly and disabled 1 26 property tax credit pursuant to sections 425.16 through 1 27 425.40. 1 28 c. Family farm tax credit pursuant to chapter 425A. 1 29 d. Agricultural land tax credit pursuant to chapter 426. 1 30 e. Military service property tax credit and exemption 1 31 pursuant to chapter 426A. 1 32 Sec. 4. NEW SECTION. 25B.8 PROPERTY TAX REPLACEMENT 1 33 DOLLARS. 1 34 1. The general assembly finds that property tax revenue is 1 35 no longer an equitable method of funding local government 2 1 services for residents and should be replaced with alternative 2 2 sources of revenue. The general assembly further finds that 2 3 the ownership or leasing of property is not an indication of 2 4 the amount or level of services consumed or an indication of a 2 5 person's ability to pay property taxes. It is the intent of 2 6 the general assembly to refrain from imposing property tax 2 7 increases on the property taxpayers of this state and to 2 8 replace property taxes with alternative sources of revenue. 2 9 2. For the fiscal year beginning July 1, 2004, and all 2 10 subsequent fiscal years, the general assembly shall not 2 11 approve an increase in any maximum property tax levy rate 2 12 authorized by state law unless the increased maximum property 2 13 tax levy rate receives approval of three-fifths of the members 2 14 of each house of the general assembly. 2 15 3. For the fiscal year beginning July 1, 2004, and all 2 16 subsequent fiscal years, the general assembly shall not 2 17 approve a reduction in appropriations for local government 2 18 assistance unless the reduced appropriation receives approval 2 19 of three-fifths of the members of each house of the general 2 20 assembly. 2 21 For purposes of this subsection, "local government 2 22 assistance" means those revenues estimated to be received by 2 23 political subdivisions in the budget year under chapter 426B, 2 24 chapter 437A, subchapter II, and section 257.1 as it relates 2 25 to the regular program foundation base per pupil and the 2 26 special education support services foundation base per pupil, 2 27 and sections 405A.3, 405A.4, 405A.10, and 427B.17 through 2 28 427B.19D, and amounts appropriated by the general assembly for 2 29 property tax relief first enacted for fiscal years beginning 2 30 on or after July 1, 2004. 2 31 Sec. 5. Section 331.401, subsection 1, Code 2003, is 2 32 amended by adding the following new paragraph after paragraph 2 33 c: 2 34 NEW PARAGRAPH. cc. Establish a property tax replacement 2 35 fund in accordance with section 331.430A. 3 1 Sec. 6. Section 331.421, Code 2003, is amended by adding 3 2 the following new subsections: 3 3 NEW SUBSECTION. 1A. "Budget year" is the fiscal year 3 4 beginning during the calendar year in which a budget is first 3 5 certified. 3 6 NEW SUBSECTION. 2A. "Current fiscal year" is the fiscal 3 7 year ending during the calendar year in which a budget is 3 8 first certified. 3 9 NEW SUBSECTION. 5A. "Fee-supported services" means those 3 10 services provided to political subdivisions or residents of 3 11 political subdivisions for a fee pursuant to an agreement 3 12 entered into under chapter 28E regardless of whether such 3 13 services are also provided to residents of the unincorporated 3 14 area of the county providing the service. 3 15 NEW SUBSECTION. 7A. "Previous fiscal year" is the fiscal 3 16 year ending during the calendar year previous to the calendar 3 17 year in which a budget is first certified. 3 18 Sec. 7. Section 331.421, subsection 7, Code 2003, is 3 19 amended to read as follows: 3 20 7. "General county services" meanstheserviceswhich are3 21primarily intended tothat benefit all residents ofathe 3 22 county, including secondary road services and fee-supported 3 23 services, but excluding rural county services and services 3 24 financed by other statutory funds. 3 25 Sec. 8. Section 331.421, subsection 8, Code 2003, is 3 26 amended to read as follows: 3 27 8. "Rural county services" meanstheserviceswhich are3 28primarily intended tothat exclusively benefit those persons 3 29 residing in the county outside of incorporated city areas,3 30includingand secondary road services, but excluding services 3 31 financed by other statutory funds. 3 32 Sec. 9. Section 331.422, unnumbered paragraph 1, Code 3 33 2003, is amended to read as follows: 3 34 Subject to this section and sections 331.423 through 3 35331.426331.425 or as otherwise provided by state law, the 4 1 board of each county shall certify property taxes annually at 4 2 its March session to be levied for county purposes as follows: 4 3 Sec. 10. Section 331.424A, subsection 4, Code 2003, is 4 4 amended to read as follows: 4 5 4. For the fiscal year beginning July 1, 1996, and for 4 6 each subsequent fiscal year, the county shall certify a levy 4 7 for payment of services. For each fiscal year, county 4 8 revenues from taxes imposed by the county credited to the 4 9 services fund shall not exceed an amount equal to the amount 4 10 of base year expenditures for services as defined in section 4 11 331.438, less the amount of property tax relief to be received 4 12 pursuant to section 426B.2, in the fiscal year for which the 4 13 budget is certified. The county auditor and the board of 4 14 supervisors shall reduce the amount of the levy certified for 4 15 the services fund by the amount of property tax relief to be 4 16 received. A levy certified under this section is not subject 4 17 to the appeal provisions of section331.426444.25, subsection 4 18 5, or to any other provision in law authorizing a county to 4 19 exceed, increase, or appeal a property tax levy limit. 4 20 Sec. 11. Section 331.425, unnumbered paragraph 1, Code 4 21 2003, is amended to read as follows: 4 22 The board may certify an addition to a levy in excess of 4 23 the amounts otherwise permitted under sections 331.423,and 4 24 331.424, and 331.426if the proposition to certify an addition 4 25 to a levy has been submitted at a special levy election and 4 26 received a favorable majority of the votes cast on the 4 27 proposition. A special levy election is subject to the 4 28 following: 4 29 Sec. 12. Section 331.427, subsection 2, Code 2003, is 4 30 amended by adding the following new paragraph: 4 31 NEW PARAGRAPH. n. Salary costs and expenses incurred in 4 32 the performance of all law enforcement responsibilities 4 33 including, but not limited to, the following: 4 34 (1) Law enforcement services provided by the sheriff, as 4 35 defined in section 331.101. 5 1 (2) Expenses incurred by the sheriff pursuant to section 5 2 331.322 or chapter 34. 5 3 (3) Salaries, benefits, and expenses related to law 5 4 enforcement positions established pursuant to section 331.323, 5 5 subsection 2, and section 331.904, subsection 2. 5 6 (4) Powers and duties performed by the sheriff pursuant to 5 7 sections 331.651 through 331.661. 5 8 (5) Powers and duties performed by the sheriff pursuant to 5 9 chapters 356 and 356A. 5 10 Sec. 13. Section 331.428, subsection 3, Code 2003, is 5 11 amended to read as follows: 5 12 3. Appropriations specifically authorized to be made from 5 13 the rural services fund shall not be made from the general 5 14 fund, but may be made from other sources. Appropriations for 5 15 services made from the general fund for the current fiscal 5 16 year or previous fiscal year shall not be made from the rural 5 17 services fund for the budget year. 5 18 Sec. 14. NEW SECTION. 331.430A PROPERTY TAX REPLACEMENT 5 19 CREDIT. 5 20 1. Property tax replacement dollars received by a county 5 21 shall be credited to the county's property tax replacement 5 22 fund. The board shall not levy property taxes for or make 5 23 appropriations from the property tax replacement fund other 5 24 than as provided in this section. 5 25 2. a. The county auditor shall reduce the certified tax 5 26 levy for the general fund received from the board of 5 27 supervisors for the budget year by an amount equal to the 5 28 amount in the property tax replacement fund designated or 5 29 allocated for countywide property tax relief. The auditor 5 30 shall calculate the tax rate after the countywide property tax 5 31 replacement amount is applied to the certified levy. 5 32 b. The county auditor shall reduce the certified tax levy 5 33 for the rural services fund received from the board of 5 34 supervisors for the budget year by an amount equal to the 5 35 amount in the property tax replacement fund designated or 6 1 allocated for property tax relief in the unincorporated area. 6 2 The auditor shall calculate the tax rate after the property 6 3 tax replacement amount is applied to the certified levy. 6 4 c. Amounts deposited in the property tax replacement fund 6 5 not specifically designated or allocated for countywide 6 6 property tax relief or for property tax relief in the 6 7 unincorporated area shall be credited to the general fund in 6 8 the proportion that the total taxable valuation in the county 6 9 bears to the sum of the total taxable valuation in the county 6 10 and the taxable valuation in the unincorporated area of the 6 11 county and shall be credited to the rural services fund in the 6 12 proportion that the taxable valuation in the unincorporated 6 13 area of the county bears to the sum of the total taxable 6 14 valuation in the county and the taxable valuation in the 6 15 unincorporated area of the county. 6 16 3. On the tax list, the county auditor shall compute the 6 17 amount of taxes due and payable on each parcel before and 6 18 after the amount received from the property tax replacement 6 19 fund is used to reduce the county levy. The amounts shall be 6 20 computed separately for the general fund and the rural 6 21 services fund. The amount of property tax dollars reduced on 6 22 each parcel as a result of the moneys received from the 6 23 property tax replacement fund, if applicable, shall be noted 6 24 on each tax statement prepared by the county treasurer 6 25 pursuant to section 445.23. 6 26 4. As used in this section, "property tax replacement 6 27 dollars" means revenues estimated to be received in the budget 6 28 year under chapter 422B that are designated to be allocated 6 29 for property tax relief and amounts appropriated by the 6 30 general assembly for property tax relief first enacted for 6 31 fiscal years beginning on or after July 1, 2003. The amount 6 32 of property tax replacement dollars for the budget year shall 6 33 be adjusted to reflect revenue corrections or reconciliation 6 34 made during the current fiscal year for the previous fiscal 6 35 year. 7 1 Sec. 15. Section 331.434, unnumbered paragraph 1, Code 7 2 2003, is amended to read as follows: 7 3 Annually, the board of each county, subject to sections 7 4 331.423 through331.426331.425 and other applicable state 7 5 law, shall prepare and adopt a budget, certify taxes, and 7 6 provide appropriations as follows: 7 7 Sec. 16. Section 331.434, Code 2003, is amended by adding 7 8 the following new subsection: 7 9 NEW SUBSECTION. 8. a. Budgeted ending fund balances for 7 10 a budget year in excess of twenty-five percent of budgeted 7 11 expenditures in either the general fund or rural services fund 7 12 for that budget year shall be explicitly reserved or 7 13 designated for a specific purpose and specifically described 7 14 in the certified budget. The certified budget for the budget 7 15 year shall include a description of any changes from the 7 16 current fiscal year to the explicitly reserved or designated 7 17 purpose for the excess ending fund balance as specifically 7 18 described in the certified budget. For purposes of this 7 19 section, ending fund balances shall be determined either on a 7 20 cash basis or an accrual basis, whichever is consistent with 7 21 the method used for the county's budget. The description 7 22 shall include the projected date that the expenditures will be 7 23 appropriated for the specific purpose. Budgeted ending fund 7 24 balances reserved or designated shall only be used for the 7 25 purpose specifically described in the certified budget. The 7 26 certified budget shall not be amended for the purpose of 7 27 changing the specific purpose after the budget year begins. 7 28 b. In a protest to the county budget under section 7 29 331.436, the county shall have the burden of proving that the 7 30 budgeted ending fund balances in excess of twenty-five percent 7 31 are reasonably likely to be appropriated for the explicitly 7 32 reserved or designated specific purpose by the date identified 7 33 in the certified budget. 7 34 c. The budgeted ending fund balance in excess of twenty- 7 35 five percent of expenditures for the general fund or rural 8 1 services fund shall be considered an increase in an item in 8 2 the budget for purposes of section 24.28. The state appeal 8 3 board may certify a decision in accordance with section 24.32 8 4 that requires a reduction in the budgeted ending fund balance 8 5 for a particular fund. 8 6 Sec. 17. Section 331.435, unnumbered paragraph 1, Code 8 7 2003, is amended to read as follows: 8 8 The board may amend the adopted county budget, subject to 8 9 sections 331.423 through331.426331.425 and other applicable 8 10 state law, to permit increases in any class of proposed 8 11 expenditures contained in the budget summary published under 8 12 section 331.434, subsection 3. 8 13 Sec. 18. Section 331.436, Code 2003, is amended by adding 8 14 the following new unnumbered paragraph: 8 15 NEW UNNUMBERED PARAGRAPH. For purposes of a protest to the 8 16 adopted budget, "item" means a budgeted expenditure, 8 17 appropriation, or cash reserve from a fund for a service area, 8 18 program, program element, or purpose. 8 19 Sec. 19. NEW SECTION. 421.71 PROPERTY TAX STUDY 8 20 COMMITTEE. 8 21 1. An Iowa property tax study committee coordinated and 8 22 administered by the department of revenue and finance is 8 23 created. 8 24 2. a. The committee shall be composed of one member of 8 25 the Iowa senate appointed by the majority leader of the 8 26 senate, and one member of the Iowa house of representatives 8 27 appointed by the speaker of the house of representatives, the 8 28 governor or the governor's designee, the director of revenue 8 29 and finance or the director's designee, and the director of 8 30 the department of management or the director's designee. 8 31 b. The committee shall also be composed of the following 8 32 persons appointed by the director of revenue and finance: 8 33 (1) One representative of the Iowa state association of 8 34 counties. 8 35 (2) One representative of the Iowa league of cities. 9 1 (3) One representative of the Iowa association of school 9 2 boards. 9 3 (4) One representative of an organization representing 9 4 property taxpayers. 9 5 (5) One representative of an organization representing 9 6 agricultural interests. 9 7 (6) One representative of an organization representing 9 8 business and industry interests. 9 9 (7) One citizen representative. 9 10 3. Staffing for the committee shall be provided by the 9 11 department of revenue and finance and the department of 9 12 management. 9 13 4. The committee's duties shall include, but not be 9 14 limited to, the following: 9 15 a. Monitoring the implementation of this Act, including 9 16 shifts in property tax burden. 9 17 b. Recommending statutory changes relating to this Act. 9 18 c. Examining the impact of this Act on county and city 9 19 budgets. 9 20 d. Compiling information on the number of counties and 9 21 cities that each year appeal for additional property taxes 9 22 pursuant to section 444.25, subsection 5. 9 23 e. Examining the impact of this Act on the school aid 9 24 funding formula and recommending changes to the regular 9 25 program foundation formula. 9 26 f. Recommending other changes to property tax law that may 9 27 go beyond the scope of this Act, including, but not limited 9 28 to, the following: 9 29 (1) Changing the property tax classification of 9 30 multifamily housing and properties providing housing with 9 31 assisted living services from commercial to residential. 9 32 (2) Evaluating the public interest in the creation of a 9 33 separate property tax classification for private outdoor 9 34 recreational, open space, and park land and recommending 9 35 changes in the law to encourage private development of this 10 1 type of property. 10 2 5. The committee shall report annually to the general 10 3 assembly and the governor on the items listed in subsection 4. 10 4 6. This section is repealed effective July 1, 2009. 10 5 Sec. 20. Section 435.1, subsections 3, 5, and 7, Code 10 6 2003, are amended to read as follows: 10 7 3. "Manufactured home" means a factory-built structure 10 8 built under authority of 42 U.S.C. } 5403, that is required by 10 9 federal law to display a seal from the United States 10 10 department of housing and urban development, and was 10 11 constructed on or after June 15, 1976.If a manufactured home10 12is placed in a manufactured home community or a mobile home10 13park, the home must be titled and is subject to the10 14manufactured or mobile home square foot tax. If a10 15manufactured home is placed outside a manufactured home10 16community or a mobile home park, theA manufactured home must 10 17 be titled and is to be assessed and taxed as real estate. 10 18 5. "Mobile home" means any vehicle without motive power 10 19 used or so manufactured or constructed as to permit its being 10 20 used as a conveyance upon the public streets and highways and 10 21 so designed, constructed, or reconstructed as will permit the 10 22 vehicle to be used as a place for human habitation by one or 10 23 more persons; but shall also include any such vehicle with 10 24 motive power not registered as a motor vehicle in Iowa. A 10 25 "mobile home" is not built to a mandatory building code, 10 26 contains no state or federal seals, and was built before June 10 27 15, 1976.If aA mobile home isplaced outside a mobile home10 28park, the home isto be assessed and taxed as real estate. 10 29 7. "Modular home" means a factory-built structure which is 10 30 manufactured to be used as a place of human habitation, is 10 31 constructed to comply with the Iowa state building code for 10 32 modular factory-built structures, and must display the seal 10 33 issued by the state building code commissioner.If a modular10 34home is placed in a manufactured home community or mobile home10 35park, the home is subject to the annual tax as required by11 1section 435.22. If aA modular home isplaced outside a11 2manufactured home community or a mobile home park, the home11 3shall be considered real property and isto be assessed and 11 4 taxed as real estate. 11 5 Sec. 21. Section 435.22, Code 2003, is amended by striking 11 6 the section and inserting in lieu thereof the following: 11 7 435.22 ASSESSMENT – CREDITS. 11 8 A mobile home or manufactured home used primarily as a 11 9 residence shall be assessed as residential property pursuant 11 10 to section 441.21, and shall be taxed an annual ad valorem tax 11 11 in the same manner as other residential property. A mobile 11 12 home or manufactured home used primarily for commercial or 11 13 industrial purposes shall be assessed as commercial and 11 14 industrial property pursuant to section 441.21, and shall be 11 15 taxed an annual ad valorem tax in the same manner as other 11 16 commercial or industrial property. A person who owns a mobile 11 17 home or manufactured home as a homestead is eligible for the 11 18 homestead tax credit provided in section 425.2. A person who 11 19 owns a mobile home or manufactured home as a homestead and who 11 20 meets the qualifications provided in sections 425.16 through 11 21 425.37 is eligible for an extraordinary property tax credit or 11 22 rent reimbursement. A person who owns a mobile home or 11 23 manufactured home and who meets the qualifications in chapter 11 24 426A is eligible for the military service tax credit. 11 25 Real estate located in a manufactured home community or a 11 26 mobile home park, as defined in section 435.1, shall be 11 27 assessed and taxed as residential property. 11 28 Sec. 22. Section 435.23, Code 2003, is amended to read as 11 29 follows: 11 30 435.23 EXEMPTIONS – PRORATING TAX. 11 31 The manufacturer's and dealer's inventory of mobile homes, 11 32 manufactured homes, or modular homes not in use as a place of 11 33 human habitation shall be exempt from the annual tax. All 11 34 travel trailers shall be exempt from this tax. The homes and 11 35 travel trailers in the inventory of manufacturers and dealers 12 1 shall be exempt from personal property tax.The homes coming12 2into Iowa from out of state and located in a manufactured home12 3community or mobile home park shall be liable for the tax12 4computed pro rata to the nearest whole month, for the time the12 5home is actually situated in Iowa.12 6 Sec. 23. Section 435.24, subsections 1, 2, and 4, Code 12 7 2003, are amended to read as follows: 12 8 1.The annual tax is due and payable to the county12 9treasurer on or after July 1 in each fiscal year and is12 10collectible in the same manner and at the same time as12 11ordinary taxes as provided in sections 445.36, 445.37, and12 12445.39. Interest at the rate prescribed by law shall accrue12 13on unpaid taxes. Both installments of taxes may be paid at12 14one time. The September installment represents a tax period12 15beginning July 1 and ending December 31. The March12 16installment represents a tax period beginning January 1 and12 17ending June 30. A mobile home, manufactured home, or modular12 18home coming into this state from outside the state, put in use12 19from a dealer's inventory, or put in use at any time after12 20July 1 or January 1, and located in a manufactured home12 21community or mobile home park, is subject to the taxes12 22prorated for the remaining unexpired months of the tax period,12 23but the purchaser is not required to pay the tax at the time12 24of purchase. Interest attaches the following April 1 for12 25taxes prorated on or after October 1. Interest attaches the12 26following October 1 for taxes prorated on or after April 1.12 27 Interest at the rate prescribed by law shall accrue on unpaid 12 28 taxes. If the taxes are not paid, the county treasurer shall 12 29 send a statement of delinquent taxes as part of the notice of 12 30 tax sale as provided in section 446.9.The owner of a home12 31who sells the home between July 1 and December 31 and obtains12 32a tax clearance statement is responsible only for the12 33September tax payment and is not required to pay taxes for12 34subsequent tax periods. If the owner of a home located in a12 35manufactured home community or mobile home park sells the13 1home, obtains a tax clearance statement, and obtains a13 2replacement home to be located in a manufactured home13 3community or mobile home park, the owner shall not pay taxes13 4under this chapter for the newly acquired home for the same13 5tax period that the owner has paid taxes on the home sold.13 6 Interest for delinquent taxes shall be calculated to the 13 7 nearest whole dollar. In calculating interest each fraction 13 8 of a month shall be counted as an entire month. 13 9 2. The home owners upon issuance of a certificate of title 13 10 or upon transporting to a new site shall file the address, 13 11 township, and school district, of the location where the home 13 12 is parked with the county treasurer's office. Failure to 13 13 comply is punishable as set out in section 435.18.When the13 14new location is outside of a manufactured home community or13 15mobile home park, theThe county treasurer shall provide to 13 16 the assessor a copy of the tax clearance statement for 13 17 purposes of assessment as real estate on the following January 13 18 1. 13 19 4. The tax is a lien on the vehicle senior to any other 13 20 lien upon it except a judgment obtained in an action to 13 21 dispose of an abandoned home under section 555B.8. The home 13 22 bearing a current registration issued by any other state and 13 23 remaining within this state for an accumulated period not to 13 24 exceed ninety days in any twelve-month period is not subject 13 25 to Iowa tax. However, when one or more persons occupying a 13 26 home bearing a foreign registration are employed in this 13 27 state, there is no exemption from the Iowa tax.This tax is13 28in lieu of all other taxes general or local on a home.13 29 Sec. 24. Section 435.26, subsection 1, paragraph a, Code 13 30 2003, is amended to read as follows: 13 31 a. A mobile home or manufactured home which is located 13 32 outside a manufactured home community or mobile home park 13 33shall be converted to real estate by beingshall be placed on 13 34 a permanent foundation and shall be assessed for real estate 13 35 taxes.A home, after conversion to real estate, is eligible14 1for the homestead tax credit and the military tax exemption as14 2provided in sections 425.2 and 426A.11.Such mobile home or 14 3 manufactured home is subject to the requirements of this 14 4 section. 14 5 Sec. 25. Section 435.27, subsection 1, Code 2003, is 14 6 amended to read as follows: 14 7 1. A mobile home or manufactured homeconverted to real14 8estateunder section 435.26may be reconverted to a home as14 9provided in this section when itthat is moved to a 14 10 manufactured home community or mobile home park or a 14 11 manufactured or mobile home retailer's inventory is subject to 14 12 the requirements of this section.When the home is located14 13within a manufactured home community or mobile home park, the14 14home shall be taxed pursuant to section 435.22, subsection 1.14 15 Sec. 26. Section 435.27, subsection 3, Code 2003, is 14 16 amended by striking the subsection. 14 17 Sec. 27. Section 435.28, Code 2003, is amended to read as 14 18 follows: 14 19 435.28 COUNTY TREASURER TO NOTIFY ASSESSOR. 14 20 Upon issuance of a certificate of title to a mobile home or 14 21 manufactured home which is not located in amanufactured home14 22community or mobile home park ordealer's inventory, the 14 23 county treasurer shall notify the assessor of the existence of 14 24 the home for tax assessment purposes. 14 25 Sec. 28. Section 435.35, Code 2003, is amended to read as 14 26 follows: 14 27 435.35 EXISTING HOME OUTSIDE OF MANUFACTURED HOME 14 28 COMMUNITY OR MOBILE HOME PARK – EXEMPTION. 14 29 A taxable mobile home or manufactured home which is not 14 30 located in a manufactured home community or mobile home park 14 31 as of January 1, 1995,shall be assessed and taxed as real14 32estate. The homeisalsoexempt from the permanent foundation 14 33 requirements of this chapter until the home is relocated. 14 34 Sec. 29. Section 441.1, Code 2003, is amended to read as 14 35 follows: 15 1 441.1 OFFICE OF ASSESSOR CREATED. 15 2InExcept as otherwise provided in section 441.16A, in 15 3 every county in the state of Iowa the office of assessor is 15 4 hereby created. A city having a population of ten thousand or 15 5 more, according to the latest federal census, may by ordinance 15 6 provide for the selection of a city assessor and for the 15 7 assessment of property in the city under the provisions of 15 8 this chapter. A city desiring to provide for assessment under 15 9 the provisions of this chapter shall, not less than sixty days 15 10 before the expiration of the term of the assessor in office, 15 11 notify the taxing bodies affected and proceed to establish a 15 12 conference board, examining board, and board of review and 15 13 select an assessor, all as provided in this chapter. A city 15 14 desiring to abolish the office of city assessor shall repeal 15 15 the ordinance establishing the office of city assessor, notify 15 16 the county conference board and the affected taxing districts, 15 17 provide for the transfer of appropriate records and other 15 18 matters, and provide for the abolition of the respective 15 19 boards and the termination of the terms of office of the 15 20 assessor and members of the respective boards. The abolition 15 21 of the city assessor's office shall take effect on July 1 15 22 following notification of the abolition unless otherwise 15 23 agreed to by the affected conference boards. If notification 15 24 of the proposed abolition is made after January 1, sufficient 15 25 funds shall be transferred from the city assessor's budget to 15 26 fund the additional responsibilities transferred to the county 15 27 assessor for the next fiscal year. 15 28 Sec. 30. NEW SECTION. 441.16A COUNTIES JOINING IN 15 29 EMPLOYMENT OF ASSESSOR. 15 30 The conference boards of two or more adjacent counties may 15 31 enter into an agreement to jointly employ a county assessor. 15 32 Such agreement shall be written and entered in their 15 33 respective minutes. The written agreement shall provide for 15 34 the manner of allocation of the budget of the assessor's 15 35 office. The provisions of chapter 28E shall be applicable to 16 1 this section, except that such agreement shall not be 16 2 applicable for a period of less than six years beginning from 16 3 the date the multicounty assessor is appointed by the 16 4 conference board. 16 5 The conference board shall be established as provided in 16 6 section 441.2, with representation from each county that is a 16 7 party to the agreement. The conference board shall appoint 16 8 one examining board. 16 9 The term of the multicounty assessor shall begin on July 1 16 10 following the date of the agreement and the terms of the 16 11 incumbent assessor in each county that is a party to the 16 12 agreement shall expire on that date, notwithstanding the term 16 13 specified in section 441.8. 16 14 The conference boards of two or more counties may only 16 15 enter into an agreement under this section if an incumbent 16 16 assessor in one of the counties resigns or does not seek 16 17 reappointment or if the conference board of one of the 16 18 counties indicates a desire not to reappoint the assessor at a 16 19 meeting held pursuant to section 441.8. 16 20 Sec. 31. Section 441.21, subsection 1, Code 2003, is 16 21 amended by adding the following new paragraph: 16 22 NEW PARAGRAPH. h. The assessor shall determine the value 16 23 of real property in accordance with rules adopted by the 16 24 revenue department and in accordance with forms and guidelines 16 25 contained in the real property appraisal manual prepared by 16 26 the department as updated from time to time, as long as such 16 27 rules, forms, and guidelines are not inconsistent with or 16 28 change the means, as provided in this section, of determining 16 29 the actual, market, taxable, and assessed values. 16 30 If the director of revenue and finance determines that an 16 31 assessor has disregarded the rules of the department relating 16 32 to valuation of property or has disregarded the forms and 16 33 guidelines contained in the real property appraisal manual, 16 34 the department shall take steps to withhold the payment 16 35 authorized in chapter 405A to the county or city, as 17 1 applicable, until the assessor is determined to be in 17 2 compliance. The department shall adopt rules relating to 17 3 application of this paragraph. 17 4 Sec. 32. Section 441.21, subsection 2, Code 2003, is 17 5 amended to read as follows: 17 6 2. In the event market value of the property being 17 7 assessed cannot be readily established in the foregoing 17 8 manner, then the assessor may determine the value of the 17 9 property using the other uniform and recognized appraisal 17 10 methods including its productive and earning capacity, if any, 17 11 industrial conditions, its cost, physical and functional 17 12 depreciation and obsolescence and replacement cost, and all 17 13 other factors which would assist in determining the fair and 17 14 reasonable market value of the property but the actual value 17 15 shall not be determined by use of only one such factor. The 17 16 following shall not be taken into consideration: Special 17 17 value or use value of the property to its present owner, and 17 18 the good will or value of a business which uses the property 17 19 as distinguished from the value of the property as property. 17 20 However, in assessing property that is rented or leased to 17 21 low-income individuals and families as authorized by section 17 22 42 of the Internal Revenue Code, as amended, and which section 17 23 limits the amount that the individual or family pays for the 17 24 rental or lease of units in the property, the assessor shall 17 25 use the productive and earning capacity from the actual rents 17 26 received as a method of appraisal and shall take into account 17 27 the extent to which that use and limitation reduces the market 17 28 value of the property. The assessor shall not consider any 17 29 tax credit equity or other subsidized financing as income 17 30 provided to the property in determining the assessed value. 17 31 Upon adoption of uniform rules by the revenue department or 17 32 succeeding authority covering assessments and valuations of 17 33 such properties,saidthe valuation on such properties shall 17 34 be determined in accordancetherewithwith such rules and in 17 35 accordance with forms and guidelines contained in the real 18 1 property appraisal manual prepared by the department as 18 2 updated from time to time for assessment purposes to assure 18 3 uniformity, but such rules, forms, and guidelines shall not be 18 4 inconsistent with or change the foregoing means of determining 18 5 the actual, market, taxable and assessed values. 18 6 Sec. 33. Section 441.21, subsection 4, Code 2003, is 18 7 amended by adding the following new unnumbered paragraphs: 18 8 NEW UNNUMBERED PARAGRAPH. For valuations established as of 18 9 January 1, 2003, and each year thereafter, the percentage of 18 10 actual value, as equalized by the director of revenue and 18 11 finance as provided in section 441.49, at which residential 18 12 property shall be assessed shall not be less than fifty 18 13 percent. If the percentage of actual value of residential 18 14 property as calculated in accordance with this subsection is 18 15 less than fifty percent, the director of revenue and finance 18 16 shall increase the percentage to fifty percent. For purposes 18 17 of determining valuations in the assessment year beginning 18 18 January 1, 2004, and for each subsequent assessment year, the 18 19 actual percentage for the prior year as determined under this 18 20 subsection before adjustment under this paragraph, if 18 21 necessary, shall be the percentage used in making the 18 22 calculation of the dividend for that assessment year. 18 23 NEW UNNUMBERED PARAGRAPH. For valuations established as of 18 24 January 1, 2004, and each year thereafter, the percentage of 18 25 actual value, as equalized by the director of revenue and 18 26 finance as provided in section 441.49, at which agricultural 18 27 property shall be assessed in each county shall not be less 18 28 than forty percent of the market value of agricultural 18 29 property for each county, established annually by Iowa state 18 30 university. If the percentage of actual value of agricultural 18 31 property as calculated in accordance with this subsection is 18 32 less than forty percent in any one county, the director of 18 33 revenue and finance shall increase the percentage to forty 18 34 percent in that county. The ratio of productivity value to 18 35 market value shall be computed separately for each county and 19 1 the forty percent limitation shall be applied on a per county 19 2 basis, rather than in the aggregate for all counties. For 19 3 purposes of determining valuations in the assessment year 19 4 beginning January 1, 2005, and for each subsequent assessment 19 5 year, the actual percentage for the prior year as determined 19 6 under this subsection before adjustment under this paragraph, 19 7 if necessary, shall be the percentage used in making the 19 8 calculation of the dividend for that assessment year. 19 9 Notwithstanding section 441.49, the director of revenue and 19 10 finance shall equalize values of agricultural property for the 19 11 assessment year beginning January 1, 2004. 19 12 Sec. 34. Section 441.21, subsection 5, Code 2003, is 19 13 amended by adding the following new unnumbered paragraph: 19 14 NEW UNNUMBERED PARAGRAPH. For valuations established as of 19 15 January 1, 2004, and each year thereafter, the percentage of 19 16 actual value, as equalized by the director of revenue and 19 17 finance as provided in section 441.49, at which commercial and 19 18 industrial property shall be assessed shall not be more than 19 19 eighty-five percent. If the percentage of actual value of 19 20 commercial and industrial property as calculated in accordance 19 21 with this subsection is more than eighty-five percent, the 19 22 director of revenue and finance shall decrease the percentage 19 23 to eighty-five percent. For purposes of determining 19 24 valuations in the assessment year beginning January 1, 2005, 19 25 and for each subsequent assessment year, the actual percentage 19 26 for the prior year as determined under this subsection before 19 27 adjustment under this paragraph, if necessary, shall be the 19 28 percentage used in making the calculation of the dividend for 19 29 that assessment year. 19 30 Sec. 35. Section 441.21, Code 2003, is amended by adding 19 31 the following new subsection: 19 32 NEW SUBSECTION. 13. Beginning with the assessment year 19 33 beginning January 1, 2004, and for all subsequent assessment 19 34 years, commercial property and industrial property shall be 19 35 assessed as one class of property. 20 1 Sec. 36. Section 441.37, subsection 1, Code 2003, is 20 2 amended by adding the following new unnumbered paragraph: 20 3 NEW UNNUMBERED PARAGRAPH. In lieu of filing a protest with 20 4 the local board of review, a property owner or aggrieved 20 5 taxpayer of industrial property may file a protest with the 20 6 director of revenue and finance. Such protest must meet the 20 7 requirements of this subsection. The costs incurred by the 20 8 department associated with the protest of an assessment to the 20 9 director of revenue and finance shall be paid from the 20 10 assessment expense fund of the county where the property is 20 11 located. 20 12 Sec. 37. Section 441.37, subsection 3, Code 2003, is 20 13 amended to read as follows: 20 14 3. a. After the board of review has considered any 20 15 protest filed by a property owner or aggrieved taxpayer and 20 16 made final disposition of the protest, the board shall give 20 17 written notice to the property owner or aggrieved taxpayer who 20 18 filed the protest of the action taken by the board of review 20 19 on the protest. The written notice to the property owner or 20 20 aggrieved taxpayer shall also specify the reasons for the 20 21 action taken by the board of review on the protest. 20 22 b. After the department has considered any protest filed 20 23 by a property owner or aggrieved taxpayer of an industrial 20 24 property assessment and made final disposition of the protest, 20 25 the department shall give written notice to the local board of 20 26 review and to the property owner or aggrieved taxpayer who 20 27 filed the protest of the action taken by the department on the 20 28 protest. The written notice to the local board of review, and 20 29 to the property owner or aggrieved taxpayer, shall also 20 30 specify the reasons for the action taken by the department on 20 31 the protest. Action taken on a protest filed under this 20 32 paragraph is final and the property owner or aggrieved 20 33 taxpayer is prohibited from appealing the action to district 20 34 court. 20 35 Sec. 38. Section 441.47, Code 2003, is amended by adding 21 1 the following new unnumbered paragraph: 21 2 NEW UNNUMBERED PARAGRAPH. Each county for which there is 21 3 appointed a multicounty assessor pursuant to section 441.16A 21 4 is considered a separate assessing jurisdiction for purposes 21 5 of this section. 21 6 Sec. 39. Section 441.54, Code 2003, is amended to read as 21 7 follows: 21 8 441.54 CONSTRUCTION. 21 9 Whenever in the laws of this state, the words "assessor" or 21 10 "assessors" appear, singly or in combination with other words, 21 11 they shall be deemed to mean and refer to the multicounty, 21 12 county, or city assessor, as the case may be. 21 13 Sec. 40. NEW SECTION. 444.25 PROPERTY TAX LIMITATIONS. 21 14 1. COUNTY LIMITATION. 21 15 a. For the fiscal year beginning July 1, 2004, and for all 21 16 subsequent fiscal years, the maximum amount of property tax 21 17 dollars that may be certified by a county for taxes payable in 21 18 the budget year shall not exceed the amount of property tax 21 19 dollars certified by the county for taxes payable in the 21 20 current fiscal year for each of the levies for the following: 21 21 (1) General county services under section 331.422, 21 22 subsection 1. 21 23 (2) Rural county services under section 331.422, 21 24 subsection 2. 21 25 (3) Other taxes under section 331.422, subsection 4. 21 26 b. The limitation provided in this subsection does not 21 27 apply to the levies on the increase in taxable valuation due 21 28 to new construction, additions or improvements to existing 21 29 structures, remodeling of existing structures for which a 21 30 building permit is required, annexation, and phasing out of 21 31 tax exemptions, and on the increase in valuation of taxable 21 32 property as a result of a comprehensive revaluation by a 21 33 private appraiser under a contract entered into prior to 21 34 January 1, 2003, or as a result of a comprehensive revaluation 21 35 directed or authorized by the conference board prior to 22 1 January 1, 2003, with documentation of the contract, 22 2 authorization, or directive on the revaluation provided to the 22 3 director of revenue and finance, if the levies are equal to or 22 4 less than the levies for the previous year; levies on that 22 5 portion of the taxable property located in an urban renewal 22 6 project the tax revenues from which are no longer divided as 22 7 provided in section 403.19, subsection 2; or as otherwise 22 8 provided in this section. 22 9 2. CITY LIMITATION. 22 10 a. For the fiscal year beginning July 1, 2004, and for all 22 11 subsequent fiscal years, the maximum amount of property tax 22 12 dollars that may be certified by a city for taxes payable in 22 13 the budget year shall not exceed the amount in property tax 22 14 dollars certified by the city for taxes payable in the current 22 15 fiscal year for each of the levies for the following: 22 16 (1) City government purposes under section 384.1. 22 17 (2) Emergency fund purposes under section 384.8. 22 18 (3) Other city government purposes under section 384.12 22 19 unless such levies have been approved by a vote of the people. 22 20 b. The limitation provided in this subsection does not 22 21 apply to the levies on the increase in taxable valuation due 22 22 to new construction, additions or improvements to existing 22 23 structures, remodeling of existing structures for which a 22 24 building permit is required, annexation, and phasing out of 22 25 tax exemptions, and on the increase in valuation of taxable 22 26 property as a result of a comprehensive revaluation by a 22 27 private appraiser under a contract entered into prior to 22 28 January 1, 2003, or as a result of a comprehensive revaluation 22 29 directed or authorized by the conference board prior to 22 30 January 1, 2003, with documentation of the contract, 22 31 authorization, or directive on the revaluation provided to the 22 32 director of revenue and finance, if the levies are equal to or 22 33 less than the levies for the previous year; levies on that 22 34 portion of the taxable property located in an urban renewal 22 35 project the tax revenues from which are no longer divided as 23 1 provided in section 403.19, subsection 2; or as otherwise 23 2 provided in this section. 23 3 3. GROWTH OPPORTUNITIES. The dollar amount computed under 23 4 subsection 1 or 2 may be increased each year, as provided in 23 5 this subsection. 23 6 a. The dollar amount determined in subsection 1, paragraph 23 7 "a", or subsection 2, paragraph "a", shall be increased by the 23 8 product of the amount in subsection 1, paragraph "a", or 23 9 subsection 2, paragraph "a", and the percentage change in the 23 10 consumer price index or times one and one-half percent, 23 11 whichever is lower. For purposes of this subsection, 23 12 "consumer price index" means the percentage rate of change in 23 13 the consumer price index as tabulated by the United States 23 14 department of labor, bureau of labor statistics, for the 23 15 twelve-month period ending June 30 of the fiscal year 23 16 immediately preceding the current fiscal year. 23 17 b. The dollar amount determined in subsection 1, paragraph 23 18 "a", or subsection 2, paragraph "a", may be increased by an 23 19 additional one percent for the fiscal year following the 23 20 calendar year that the federal government disseminates 23 21 population data pursuant to Pub. L. No. 94-171 if such data 23 22 shows that the population of the county or city, as 23 23 applicable, increased by ten percent or more from the previous 23 24 federal decennial census. 23 25 c. The dollar amount determined in subsection 1, paragraph 23 26 "a", or subsection 2, paragraph "a", may be increased by an 23 27 additional one percent if the budget year enrollment in the 23 28 county or city, as applicable, increased by more than two 23 29 percent over the enrollment in the current fiscal year. For 23 30 purposes of this paragraph, "enrollment" means the number of 23 31 pupils residing in the county or city, as applicable, and 23 32 attending kindergarten through twelfth grade in an accredited 23 33 public or nonpublic school in the state. 23 34 4. EXCEPTIONS. The limitations provided in subsections 1 23 35 and 2 do not apply to the levies made for the following: 24 1 a. Debt service to be deposited into the debt service fund 24 2 pursuant to section 331.430 or 384.4. 24 3 b. Trust and agency purposes as described in section 384.6 24 4 to be deposited in the trust and agency funds established by a 24 5 city or as described in section 331.424, subsection 1, 24 6 paragraph "d", and section 331.424, subsection 2, paragraph 24 7 "a". 24 8 c. Taxes or tax levies approved by a vote of the people. 24 9 d. Hospitals pursuant to chapters 37, 347, and 347A. 24 10 5. APPEAL PROCEDURES. If a city or county needs to 24 11 increase the amount of property tax dollars raised from a tax 24 12 levy in excess of the amounts allowed in subsections 1 through 24 13 3, the following procedures apply: 24 14 a. Not later than March 1, and after the publication and 24 15 public hearing on the budget in the manner and form prescribed 24 16 by the director of the department of management, 24 17 notwithstanding sections 331.434, 362.3, and 384.16, the city 24 18 or county shall petition the state appeal board for approval 24 19 of a property tax increase in excess of the increases provided 24 20 for in subsection 3, on forms furnished by the director of the 24 21 department of management. Applications received after March 1 24 22 shall be automatically ineligible for consideration by the 24 23 board. 24 24 b. Additional costs incurred by the city or county due to 24 25 any of the following circumstances shall be the basis for 24 26 justifying the extraordinary increase in property tax dollars 24 27 under this subsection: 24 28 (1) Natural disaster or other life-threatening 24 29 emergencies. 24 30 (2) Unusual need for additional moneys to finance existing 24 31 programs that would provide substantial benefit to city or 24 32 county residents or compelling need to finance new programs 24 33 that would provide substantial benefit to city or county 24 34 residents. 24 35 (3) Need for additional moneys for health care, treatment, 25 1 and facilities, including mental health and mental retardation 25 2 care and treatment pursuant to section 331.424, subsection 1, 25 3 paragraphs "a" and "b". 25 4 (4) Judgments, settlements, and related costs arising out 25 5 of civil claims against the city or county and its officers, 25 6 employees, and agents, as defined in chapter 670. 25 7 c. The state appeal board shall approve, disapprove, or 25 8 reduce the amount of excess property tax dollars requested. 25 9 The board shall take into account the intent of this section 25 10 to provide property tax relief. The decision of the board 25 11 shall be rendered at a regular or special meeting of the board 25 12 within twenty days of the board's receipt of an appeal. 25 13 d. Within seven days of receipt of the decision of the 25 14 state appeal board, the county or city shall adopt and certify 25 15 its budget under section 331.434 or 384.16, which budgets may 25 16 be protested as provided in section 331.436 or 384.19. The 25 17 budget shall not contain an amount of property tax dollars in 25 18 excess of the amount approved by the state appeal board. 25 19 6. COUNTY AUDITOR ADJUSTMENT. In addition to the 25 20 requirement of the county auditor in section 444.3 to 25 21 establish a rate of tax which does not exceed the rate 25 22 authorized by law, the county auditor shall also adjust the 25 23 rate if the amount of property tax dollars to be raised is in 25 24 excess of the amount specified in subsections 1 and 3 for a 25 25 county or subsections 2 and 3 for a city, as such rates may be 25 26 adjusted pursuant to subsection 5. 25 27 7. DEFINITIONS. For purposes of this section, "budget 25 28 year" and "current fiscal year" mean the same as defined in 25 29 section 331.421. 25 30 Sec. 41. NEW SECTION. 444.25A OTHER PROPERTY TAX LEVY 25 31 LIMITATIONS NOT AFFECTED. 25 32 Section 444.25 shall not be construed as removing or 25 33 otherwise affecting the property tax limitations otherwise 25 34 provided by law for any tax levy of the political subdivision. 25 35 Sec. 42. Section 445.5, subsection 1, Code 2003, is 26 1 amended by adding the following new paragraph: 26 2 NEW PARAGRAPH. j. The information required pursuant to 26 3 section 331.430A, subsection 3. 26 4 Sec. 43. Sections 331.426 and 435.34, Code 2003, are 26 5 repealed. 26 6 Sec. 44. EFFECTIVE AND APPLICABILITY DATES. 26 7 1. The sections of this Act amending sections 435.22 26 8 through 435.24, 435.26 through 435.28, and 435.35, and 26 9 repealing section 435.34, apply to property taxes on mobile 26 10 and manufactured homes due and payable in the fiscal year 26 11 beginning July 1, 2005. 26 12 2. The repeal of section 331.426 in this Act takes effect 26 13 July 1, 2004, and applies to fiscal years beginning on or 26 14 after that date. 26 15 3. The sections of this Act amending sections 331.401, 26 16 331.427, 331.428, 331.436, and 445.5, enacting section 26 17 331.421, subsections 1A, 2A, 5A, and 7A, amending section 26 18 331.421, subsections 7 and 8, enacting section 331.430A, and 26 19 enacting section 331.434, subsection 8, apply to fiscal years 26 20 beginning on or after July 1, 2004. 26 21 EXPLANATION 26 22 This bill makes changes relating to assessment and taxation 26 23 of real property and to city and county budgets. 26 24 The bill makes changes regarding state appropriations 26 25 relating to property tax credits and exemptions and local 26 26 government assistance and legislation relating to property tax 26 27 rates. The bill provides that, beginning with the fiscal year 26 28 beginning July 1, 2004, a state appropriation made to fund a 26 29 property tax credit or exemption shall not be reduced from the 26 30 amount appropriated the year before unless the appropriation 26 31 receives approval of three-fifths of the members of each house 26 32 of the general assembly. The bill also provides that for 26 33 fiscal years beginning on or after July 1, 2004, the general 26 34 assembly shall not increase any maximum property tax levy rate 26 35 set in statute unless the increase receives approval of three- 27 1 fifths of the members of each house of the general assembly. 27 2 The bill further provides that, for fiscal years beginning on 27 3 or after July 1, 2004, the general assembly shall not approve 27 4 a reduction in state appropriations for local government 27 5 assistance unless the reduction receives approval of three- 27 6 fifths of the members of each house of the general assembly. 27 7 The bill defines "local government assistance". 27 8 The bill requires the establishment of a county property 27 9 tax replacement fund in each county. The bill provides that 27 10 local option sales tax revenues and amounts appropriated by 27 11 the general assembly for property tax relief are to be 27 12 credited to the fund. For each fiscal year, the county 27 13 auditor is to reduce the amount of the certified levy by the 27 14 amount of moneys in the fund before calculating the property 27 15 tax rate. If moneys in the fund are designated or allocated 27 16 for property tax relief in the unincorporated area only, the 27 17 auditor shall reduce the certified levy for the rural services 27 18 fund. If moneys in the fund are designated or allocated for 27 19 countywide property tax relief, the auditor shall reduce the 27 20 certified levy for the general services fund. If amounts in 27 21 the fund are not specifically designated or allocated, the 27 22 certified levies for both funds shall be reduced 27 23 proportionately. The bill further provides that the amount of 27 24 property tax dollars reduced on each parcel as a result of 27 25 moneys received from the property tax replacement fund shall 27 26 be noted on each tax statement prepared by the county 27 27 treasurer. This portion of the bill applies to fiscal years 27 28 beginning on or after July 1, 2004. 27 29 The bill provides definitions for the following as they 27 30 relate to county budgets: "budget year", "current fiscal 27 31 year", "fee-supported services", and "previous fiscal year". 27 32 The bill amends the definition of "general county services" to 27 33 include fee-supported services and to exclude rural county 27 34 services. The bill also amends the definition of "rural 27 35 county services" to provide that rural county services are 28 1 those that exclusively benefit those persons residing in the 28 2 county outside of incorporated city areas. The bill adds 28 3 salary costs and expenses incurred in the performance of all 28 4 law enforcement responsibilities to the list of general county 28 5 services for which a county board of supervisors may make 28 6 appropriations from the general fund. The bill provides that 28 7 services paid for from the general fund in the current fiscal 28 8 year or in the previous fiscal year may not be transferred to 28 9 the rural services fund. These changes apply to fiscal years 28 10 beginning on or after July 1, 2004. 28 11 The bill requires that if a county's ending fund balance 28 12 for a budget year exceeds 25 percent of budgeted expenditures, 28 13 the excess over 25 percent must be explicitly reserved or 28 14 designated for a specific purpose. This portion of the bill 28 15 applies to ending fund balances in the general fund and the 28 16 rural services fund. The bill provides that if the amount of 28 17 the ending fund balance is protested to the state appeal 28 18 board, the county has the burden of proving that the amount 28 19 over 25 percent is reasonably likely to be appropriated for 28 20 the reserved or designated purpose and that the amount is 28 21 necessary, reasonable, and in the interest of the public 28 22 welfare. This portion of the bill defines "item". 28 23 The bill removes the square footage tax on mobile homes and 28 24 manufactured homes and replaces it with the ad valorem tax 28 25 imposed on other real property. The division provides that 28 26 real estate of a mobile home park or land-leased community 28 27 shall be assessed and taxed as residential property. These 28 28 sections of the division apply to taxes due and payable in the 28 29 fiscal year beginning July 1, 2005. 28 30 The bill allows counties to enter into an agreement for 28 31 employment of a multicounty assessor. The bill provides for 28 32 conference board representation from each county that is a 28 33 party to the agreement and provides for one examining board in 28 34 the multicounty area. The bill requires that an agreement for 28 35 multicounty assessor shall be in force for at least six years. 29 1 The bill requires local assessors, when assessing property, 29 2 to use the forms and apply the guidelines contained in the 29 3 real property appraisal manual prepared by the department of 29 4 revenue and finance. If the department determines that an 29 5 assessor, when assessing property, is willfully disregarding 29 6 rules, forms, and guidelines of the department, the department 29 7 shall take steps to withhold the county's or city's personal 29 8 property tax replacement payment by the state until the 29 9 assessor complies with the rules, forms, and guidelines. 29 10 The bill limits the percentage of actual value that 29 11 residential property may be rolled back to 50 percent 29 12 beginning with the assessment year beginning January 1, 2003. 29 13 Beginning with the assessment year beginning January 1, 2003, 29 14 the bill limits the percentage of actual value (productivity 29 15 value) that agricultural property may be rolled back to an 29 16 amount equal to 40 percent of the market value of agricultural 29 17 property as established annually by Iowa state university. 29 18 The bill also provides that, beginning with the assessment 29 19 year beginning January 1, 2003, the percent of actual value at 29 20 which commercial and industrial property may be assessed is 29 21 limited to 85 percent. 29 22 The bill provides that, beginning with the assessment year 29 23 beginning January 1, 2004, commercial and industrial property 29 24 shall be assessed as one class of property. 29 25 The bill provides that an owner or aggrieved taxpayer of 29 26 industrial property may protest an assessment to the director 29 27 of revenue and finance. Action taken on a protest made to the 29 28 director of revenue and finance is final and the owner or 29 29 aggrieved taxpayer is not allowed to appeal such action to 29 30 district court. 29 31 The bill limits the maximum dollar amounts of property tax 29 32 levies to be imposed by cities and counties to the dollar 29 33 amounts of the property taxes levied in the previous year, 29 34 with certain exceptions. The bill also allows the amount of 29 35 the county's or city's previous year's tax levy to be 30 1 increased as follows: by 1.5 percent or the consumer price 30 2 index, whichever is lower; by 1 percent in the fiscal year 30 3 following the federal decennial census if the population of 30 4 the county or city, as applicable, has grown by 10 percent or 30 5 more; and by 1 percent if the budget year enrollment in the 30 6 county or city, as applicable, increased by more than 2 30 7 percent over the pupil enrollment in the current fiscal year. 30 8 The bill defines "enrollment". The limitation on property 30 9 taxes may be exceeded for certain expenditures if the county 30 10 or city, as applicable, files a petition with the state appeal 30 11 board by March 1 and the petition is approved by the state 30 12 appeal board. Conforming amendments relating to exceeding 30 13 property tax levies are made to Code sections 24.48 and 30 14 331.426. The limitation on property taxes applies to fiscal 30 15 years beginning on or after July 1, 2004. 30 16 The bill creates a property tax study committee to be 30 17 coordinated and administered by the department of revenue and 30 18 finance. Membership on the committee includes representatives 30 19 from the general assembly, the governor's office, the 30 20 department of revenue and finance, the department of 30 21 management, and various interest groups. The committee is to 30 22 be staffed by the department of revenue and finance and the 30 23 department of management. The committee is to monitor 30 24 implementation of the bill, including impacts on property 30 25 taxpayer burden, county and city budgets, and the school aid 30 26 funding formula and make recommendations for legislative 30 27 changes related to the bill and other changes to property tax 30 28 law that go beyond the scope of the bill. The committee is to 30 29 annually report to the general assembly and the governor. The 30 30 section creating the committee is repealed effective July 1, 30 31 2009. 30 32 LSB 3427SC 80 30 33 sc/sh/8
Text: SSB01189 Text: SSB01191 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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