Senate File 522 H-1716 Amend Senate File 522, as passed by the Senate, as 1 follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < DIVISION I 5 EDUCATION FINANCE 6 Section 1. Section 257.1, subsection 2, paragraph 7 b, Code 2011, is amended by striking the paragraph and 8 inserting in lieu thereof the following: 9 b. (1) The regular program foundation base per 10 pupil is the following: 11 (a) For the budget year commencing July 1, 2011, 12 the regular program foundation base per pupil is 13 eighty-seven and five-tenths percent of the regular 14 program state cost per pupil. 15 (b) For the budget year commencing July 1, 2012, 16 the regular program foundation base per pupil is 17 eighty-nine and twenty-eight hundredths percent of the 18 regular program state cost per pupil. 19 (c) For the budget year commencing July 1, 2013, 20 the regular program foundation base per pupil is 21 ninety-one and six hundredths percent of the regular 22 program state cost per pupil. 23 (d) For the budget year commencing July 1, 2014, 24 the regular program foundation base per pupil is 25 ninety-two and eighty-four hundredths percent of the 26 regular program state cost per pupil. 27 (e) For the budget year commencing July 1, 2015, 28 the regular program foundation base per pupil is 29 ninety-four and sixty-two hundredths percent of the 30 regular program state cost per pupil. 31 (f) For the budget year commencing July 1, 2016, 32 the regular program foundation base per pupil is 33 ninety-six and forty hundredths percent of the regular 34 program state cost per pupil. 35 (g) For the budget year commencing July 1, 2017, 36 the regular program foundation base per pupil is 37 ninety-eight and eighteen hundredths percent of the 38 regular program state cost per pupil. 39 (h) For the budget year commencing July 1, 2018, 40 and succeeding budget years, the regular program 41 foundation base per pupil is one hundred percent of the 42 regular program state cost per pupil. 43 (2) For each budget year, the special education 44 support services foundation base is seventy-nine 45 percent of the special education support services state 46 cost per pupil. The combined foundation base is the 47 sum of the regular program foundation base, the special 48 education support services foundation base, the total 49 teacher salary supplement district cost, the total 50 -1- SF522.3105 (2) 84 md/rj 1/ 23 #1.

professional development supplement district cost, the 1 total early intervention supplement district cost, the 2 total area education agency teacher salary supplement 3 district cost, and the total area education agency 4 professional development supplement district cost. 5 DIVISION II 6 PROPERTY ASSESSMENT LIMITATIONS 7 Sec. 2. Section 441.21, subsection 4, Code 2011, is 8 amended to read as follows: 9 4. For valuations established as of January 10 1, 1979, the percentage of actual value at which 11 agricultural and residential property shall be assessed 12 shall be the quotient of the dividend and divisor as 13 defined in this section . The dividend for each class 14 of property shall be the dividend as determined for 15 each class of property for valuations established as 16 of January 1, 1978, adjusted by the product obtained 17 by multiplying the percentage determined for that year 18 by the amount of any additions or deletions to actual 19 value, excluding those resulting from the revaluation 20 of existing properties, as reported by the assessors 21 on the abstracts of assessment for 1978, plus six 22 percent of the amount so determined. However, if the 23 difference between the dividend so determined for 24 either class of property and the dividend for that 25 class of property for valuations established as of 26 January 1, 1978, adjusted by the product obtained by 27 multiplying the percentage determined for that year 28 by the amount of any additions or deletions to actual 29 value, excluding those resulting from the revaluation 30 of existing properties, as reported by the assessors 31 on the abstracts of assessment for 1978, is less than 32 six percent, the 1979 dividend for the other class of 33 property shall be the dividend as determined for that 34 class of property for valuations established as of 35 January 1, 1978, adjusted by the product obtained by 36 multiplying the percentage determined for that year 37 by the amount of any additions or deletions to actual 38 value, excluding those resulting from the revaluation 39 of existing properties, as reported by the assessors on 40 the abstracts of assessment for 1978, plus a percentage 41 of the amount so determined which is equal to the 42 percentage by which the dividend as determined for the 43 other class of property for valuations established as 44 of January 1, 1978, adjusted by the product obtained 45 by multiplying the percentage determined for that year 46 by the amount of any additions or deletions to actual 47 value, excluding those resulting from the revaluation 48 of existing properties, as reported by the assessors 49 on the abstracts of assessment for 1978, is increased 50 -2- SF522.3105 (2) 84 md/rj 2/ 23

in arriving at the 1979 dividend for the other class 1 of property. The divisor for each class of property 2 shall be the total actual value of all such property 3 in the state in the preceding year, as reported by the 4 assessors on the abstracts of assessment submitted 5 for 1978, plus the amount of value added to said 6 total actual value by the revaluation of existing 7 properties in 1979 as equalized by the director of 8 revenue pursuant to section 441.49 . The director shall 9 utilize information reported on abstracts of assessment 10 submitted pursuant to section 441.45 in determining 11 such percentage. For valuations established as of 12 January 1, 1980, and each assessment year thereafter 13 beginning before January 1, 2012 , the percentage of 14 actual value as equalized by the director of revenue 15 as provided in section 441.49 at which agricultural 16 and residential property shall be assessed shall be 17 calculated in accordance with the methods provided 18 herein including the limitation of increases in 19 agricultural and residential assessed values to the 20 percentage increase of the other class of property if 21 the other class increases less than the allowable limit 22 adjusted to include the applicable and current values 23 as equalized by the director of revenue, except that 24 any references to six percent in this subsection shall 25 be four percent. For valuations established as of 26 January 1, 2012, and each assessment year thereafter, 27 the percentage of actual value as equalized by the 28 director of revenue as provided in section 441.49 at 29 which agricultural and residential property shall be 30 assessed shall be calculated in accordance with the 31 methods provided herein including the limitation of 32 increases in agricultural and residential assessed 33 values to the percentage increase of the other class 34 of property if the other class increases less than the 35 allowable limit adjusted to include the applicable and 36 current values as equalized by the director of revenue, 37 except that any references to six percent in this 38 subsection shall be two percent. 39 Sec. 3. Section 441.21, subsection 5, Code 2011, is 40 amended to read as follows: 41 5. a. For valuations established as of January 42 1, 1979, commercial property and industrial property, 43 excluding properties referred to in section 427A.1, 44 subsection 8 , shall be assessed as a percentage of 45 the actual value of each class of property. The 46 percentage shall be determined for each class of 47 property by the director of revenue for the state in 48 accordance with the provisions of this section . For 49 valuations established as of January 1, 1979, the 50 -3- SF522.3105 (2) 84 md/rj 3/ 23

percentage shall be the quotient of the dividend and 1 divisor as defined in this section . The dividend 2 for each class of property shall be the total actual 3 valuation for each class of property established for 4 1978, plus six percent of the amount so determined. 5 The divisor for each class of property shall be the 6 valuation for each class of property established for 7 1978, as reported by the assessors on the abstracts 8 of assessment for 1978, plus the amount of value 9 added to the total actual value by the revaluation 10 of existing properties in 1979 as equalized by the 11 director of revenue pursuant to section 441.49 . For 12 valuations established as of January 1, 1979, property 13 valued by the department of revenue pursuant to 14 chapters 428 , 433 , 437 , and 438 shall be considered 15 as one class of property and shall be assessed as a 16 percentage of its actual value. The percentage shall 17 be determined by the director of revenue in accordance 18 with the provisions of this section . For valuations 19 established as of January 1, 1979, the percentage 20 shall be the quotient of the dividend and divisor as 21 defined in this section . The dividend shall be the 22 total actual valuation established for 1978 by the 23 department of revenue, plus ten percent of the amount 24 so determined. The divisor for property valued by 25 the department of revenue pursuant to chapters 428 , 26 433 , 437 , and 438 shall be the valuation established 27 for 1978, plus the amount of value added to the total 28 actual value by the revaluation of the property by 29 the department of revenue as of January 1, 1979. 30 For valuations established as of January 1, 1980, 31 commercial property and industrial property, excluding 32 properties referred to in section 427A.1, subsection 33 8 , shall be assessed at a percentage of the actual 34 value of each class of property. The percentage 35 shall be determined for each class of property by 36 the director of revenue for the state in accordance 37 with the provisions of this section . For valuations 38 established as of January 1, 1980, the percentage 39 shall be the quotient of the dividend and divisor as 40 defined in this section . The dividend for each class 41 of property shall be the dividend as determined for 42 each class of property for valuations established as 43 of January 1, 1979, adjusted by the product obtained 44 by multiplying the percentage determined for that year 45 by the amount of any additions or deletions to actual 46 value, excluding those resulting from the revaluation 47 of existing properties, as reported by the assessors 48 on the abstracts of assessment for 1979, plus four 49 percent of the amount so determined. The divisor 50 -4- SF522.3105 (2) 84 md/rj 4/ 23

for each class of property shall be the total actual 1 value of all such property in 1979, as equalized by 2 the director of revenue pursuant to section 441.49 , 3 plus the amount of value added to the total actual 4 value by the revaluation of existing properties in 5 1980. The director shall utilize information reported 6 on the abstracts of assessment submitted pursuant 7 to section 441.45 in determining such percentage. 8 For valuations established as of January 1, 1980, 9 property valued by the department of revenue pursuant 10 to chapters 428 , 433 , 437 , and 438 shall be assessed 11 at a percentage of its actual value. The percentage 12 shall be determined by the director of revenue in 13 accordance with the provisions of this section . For 14 valuations established as of January 1, 1980, the 15 percentage shall be the quotient of the dividend and 16 divisor as defined in this section . The dividend shall 17 be the total actual valuation established for 1979 by 18 the department of revenue, plus eight percent of the 19 amount so determined. The divisor for property valued 20 by the department of revenue pursuant to chapters 428 , 21 433 , 437 , and 438 shall be the valuation established 22 for 1979, plus the amount of value added to the total 23 actual value by the revaluation of the property by 24 the department of revenue as of January 1, 1980. For 25 valuations established as of January 1, 1981, and 26 each year thereafter, the percentage of actual value 27 as equalized by the director of revenue as provided 28 in section 441.49 at which commercial property and 29 industrial property, excluding properties referred to 30 in section 427A.1, subsection 8 , shall be assessed 31 shall be calculated in accordance with the methods 32 provided herein, except that any references to six 33 percent in this subsection shall be four percent. For 34 valuations established as of January 1, 1981, and 35 each year thereafter, the percentage of actual value 36 at which property valued by the department of revenue 37 pursuant to chapters 428 , 433 , 437 , and 438 shall be 38 assessed shall be calculated in accordance with the 39 methods provided herein, except that any references 40 to ten percent in this subsection shall be eight 41 percent. Beginning with valuations established as of 42 January 1, 1979, and each assessment year thereafter 43 beginning before January 1, 2012 , property valued 44 by the department of revenue pursuant to chapter 434 45 shall also be assessed at a percentage of its actual 46 value which percentage shall be equal to the percentage 47 determined by the director of revenue for commercial 48 property, industrial property, or property valued by 49 the department of revenue pursuant to chapters 428 , 50 -5- SF522.3105 (2) 84 md/rj 5/ 23

433 , 437 , and 438 , whichever is lowest. Beginning with 1 valuations established as of January 1, 2012, and each 2 assessment year thereafter, property valued by the 3 department of revenue pursuant to chapter 434 shall 4 be assessed at a percentage of its actual value equal 5 to the percentage of actual value at which commercial 6 property is assessed for the same assessment year. 7 b. For valuations established on or after January 8 1, 2012, commercial property, excluding properties 9 referred to in section 427A.1, subsection 8 , shall 10 be assessed as a percentage of the actual value, as 11 determined in this paragraph. 12 (1) For valuations established for the assessment 13 year beginning January 1, 2012, the percentage of 14 actual value as equalized by the director of revenue as 15 provided in section 441.49 at which commercial property 16 shall be assessed shall be ninety-two percent. 17 (2) For valuations established for the assessment 18 year beginning January 1, 2013, the percentage of 19 actual value as equalized by the director of revenue as 20 provided in section 441.49 at which commercial property 21 shall be assessed shall be eighty-four percent. 22 (3) For valuations established for the assessment 23 year beginning January 1, 2014, the percentage of 24 actual value as equalized by the director of revenue as 25 provided in section 441.49 at which commercial property 26 shall be assessed shall be seventy-six percent. 27 (4) For valuations established for the assessment 28 year beginning January 1, 2015, the percentage of 29 actual value as equalized by the director of revenue as 30 provided in section 441.49 at which commercial property 31 shall be assessed shall be sixty-eight percent. 32 (5) For valuations established for the assessment 33 year beginning January 1, 2016, and each assessment 34 year thereafter, the percentage of actual value as 35 equalized by the director of revenue as provided in 36 section 441.49 at which commercial property shall be 37 assessed shall be sixty percent. 38 c. For valuations established on or after January 39 1, 2012, industrial property, excluding properties 40 referred to in section 427A.1, subsection 8, shall 41 be assessed as a percentage of the actual value, as 42 determined in this paragraph. 43 (1) For valuations established for the assessment 44 year beginning January 1, 2012, the percentage of 45 actual value as equalized by the director of revenue as 46 provided in section 441.49 at which industrial property 47 shall be assessed shall be ninety-two percent. 48 (2) For valuations established for the assessment 49 year beginning January 1, 2013, the percentage of 50 -6- SF522.3105 (2) 84 md/rj 6/ 23

actual value as equalized by the director of revenue as 1 provided in section 441.49 at which industrial property 2 shall be assessed shall be eighty-four percent. 3 (3) For valuations established for the assessment 4 year beginning January 1, 2014, the percentage of 5 actual value as equalized by the director of revenue as 6 provided in section 441.49 at which industrial property 7 shall be assessed shall be seventy-six percent. 8 (4) For valuations established for the assessment 9 year beginning January 1, 2015, the percentage of 10 actual value as equalized by the director of revenue as 11 provided in section 441.49 at which industrial property 12 shall be assessed shall be sixty-eight percent. 13 (5) For valuations established for the assessment 14 year beginning January 1, 2016, and each assessment 15 year thereafter, the percentage of actual value as 16 equalized by the director of revenue as provided in 17 section 441.49 at which industrial property shall be 18 assessed shall be sixty percent. 19 Sec. 4. NEW SECTION . 441.21A Legislative intent. 20 1. It is the intent of the general assembly that 21 appropriations be made annually to reimburse local 22 taxing authorities in this state for reductions in 23 property tax collections on commercial and industrial 24 property as a result of the assessment limitations 25 on such property established under section 441.21, 26 subsection 5, paragraphs “b” and “c” , in the following 27 amounts: 28 a. For the fiscal year beginning July 1, 2013, 29 fifty million dollars. 30 b. For the fiscal year beginning July 1, 2014, one 31 hundred million dollars. 32 c. For the fiscal year beginning July 1, 2015, one 33 hundred fifty million dollars. 34 d. For the fiscal year beginning July 1, 2016, two 35 hundred million dollars. 36 e. For the fiscal year beginning July 1, 2017, and 37 each fiscal year thereafter, two hundred fifty million 38 dollars. 39 2. The committee on ways and means of the senate 40 and the committee on ways and means of the house of 41 representatives shall each conduct an annual review of 42 the implementation and fiscal impact of the commercial 43 and industrial property assessment limitations 44 established under section 441.21, subsection 5, 45 paragraphs “b” and “c” , on local taxing authorities in 46 this state. 47 Sec. 5. SAVINGS PROVISION. This division of this 48 Act, pursuant to section 4.13, does not affect the 49 operation of, or prohibit the application of, prior 50 -7- SF522.3105 (2) 84 md/rj 7/ 23

provisions of section 441.21, or rules adopted under 1 chapter 17A to administer prior provisions of section 2 441.21, for assessment years beginning before January 3 1, 2012, and for duties, powers, protests, appeals, 4 proceedings, actions, or remedies attributable to an 5 assessment year beginning before January 1, 2012. 6 Sec. 6. APPLICABILITY. This division of this Act 7 applies to property tax assessment years beginning on 8 or after January 1, 2012. 9 DIVISION III 10 COUNTY AND CITY BUDGET LIMITATION 11 Sec. 7. Section 23A.2, subsection 10, paragraph h, 12 Code 2011, is amended to read as follows: 13 h. The performance of an activity listed in 14 section 331.424 , Code 2011, as a service for which a 15 supplemental levy county may be certified include in 16 its budget . 17 Sec. 8. Section 28M.5, subsection 2, Code 2011, is 18 amended to read as follows: 19 2. If a regional transit district budget allocates 20 revenue responsibilities to the board of supervisors 21 of a participating county, the amount of the regional 22 transit district levy that is the responsibility of the 23 participating county shall be deducted from the maximum 24 rates amount of taxes authorized to be levied by the 25 county pursuant to section 331.423 , subsections 1 and 26 2 subsection 3, paragraphs “b” and “c” , as applicable, 27 unless the county meets its revenue responsibilities as 28 allocated in the budget from other available revenue 29 sources. However, for a regional transit district 30 that includes a county with a population of less than 31 three hundred thousand, the amount of the regional 32 transit district levy that is the responsibility of 33 such participating county shall be deducted from the 34 maximum rate amount of taxes authorized to be levied 35 by the county pursuant to section 331.423, subsection 36 1 3, paragraph “b” . 37 Sec. 9. Section 123.38, subsection 2, Code 2011, is 38 amended to read as follows: 39 2. Any licensee or permittee, or the licensee’s 40 or permittee’s executor or administrator, or any 41 person duly appointed by the court to take charge of 42 and administer the property or assets of the licensee 43 or permittee for the benefit of the licensee’s or 44 permittee’s creditors, may voluntarily surrender a 45 license or permit to the division. When a license 46 or permit is surrendered the division shall notify 47 the local authority, and the division or the local 48 authority shall refund to the person surrendering the 49 license or permit, a proportionate amount of the fee 50 -8- SF522.3105 (2) 84 md/rj 8/ 23

received by the division or the local authority for 1 the license or permit as follows: if a license or 2 permit is surrendered during the first three months 3 of the period for which it was issued, the refund 4 shall be three-fourths of the amount of the fee; 5 if surrendered more than three months but not more 6 than six months after issuance, the refund shall be 7 one-half of the amount of the fee; if surrendered more 8 than six months but not more than nine months after 9 issuance, the refund shall be one-fourth of the amount 10 of the fee. No refund shall be made, however, for 11 any special liquor permit, nor for a liquor control 12 license, wine permit, or beer permit surrendered more 13 than nine months after issuance. For purposes of this 14 subsection, any portion of license or permit fees 15 used for the purposes authorized in section 331.424, 16 subsection 1 , paragraph “a” , subparagraphs (1) and 17 (2), Code 2011, and in section 331.424A , shall not be 18 deemed received either by the division or by a local 19 authority. No refund shall be made to any licensee or 20 permittee, upon the surrender of the license or permit, 21 if there is at the time of surrender, a complaint filed 22 with the division or local authority, charging the 23 licensee or permittee with a violation of this chapter . 24 If upon a hearing on a complaint the license or permit 25 is not revoked or suspended, then the licensee or 26 permittee is eligible, upon surrender of the license 27 or permit, to receive a refund as provided in this 28 section ; but if the license or permit is revoked or 29 suspended upon hearing the licensee or permittee is not 30 eligible for the refund of any portion of the license 31 or permit fee. 32 Sec. 10. Section 218.99, Code 2011, is amended to 33 read as follows: 34 218.99 Counties to be notified of patients’ personal 35 accounts. 36 The administrator in control of a state institution 37 shall direct the business manager of each institution 38 under the administrator’s jurisdiction which is 39 mentioned in section 331.424, subsection 1 , paragraph 40 “a” , subparagraphs (1) and (2), and for which services 41 are paid under section 331.424A , to quarterly inform 42 the county of legal settlement’s entity designated to 43 perform the county’s central point of coordination 44 process of any patient or resident who has an amount 45 in excess of two hundred dollars on account in the 46 patients’ personal deposit fund and the amount on 47 deposit. The administrators shall direct the business 48 manager to further notify the entity designated to 49 perform the county’s central point of coordination 50 -9- SF522.3105 (2) 84 md/rj 9/ 23

process at least fifteen days before the release of 1 funds in excess of two hundred dollars or upon the 2 death of the patient or resident. If the patient or 3 resident has no county of legal settlement, notice 4 shall be made to the director of human services and the 5 administrator in control of the institution involved. 6 Sec. 11. Section 331.263, subsection 2, Code 2011, 7 is amended to read as follows: 8 2. The governing body of the community commonwealth 9 shall have the authority to levy county taxes and shall 10 have the authority to levy city taxes to the extent the 11 city tax levy authority is transferred by the charter 12 to the community commonwealth. A city participating 13 in the community commonwealth shall transfer a portion 14 of the city’s tax levy authorized under section 384.1 15 or 384.12 , whichever is applicable, to the governing 16 body of the community commonwealth. The maximum 17 rates amount of taxes authorized to be levied under 18 sections section 384.1 and the maximum amount of taxes 19 authorized to be levied under section 384.12 by a city 20 participating in the community commonwealth shall be 21 reduced by an amount equal to the rates of the same or 22 similar taxes levied in the city by the governing body 23 of the community commonwealth. 24 Sec. 12. Section 331.301, subsection 12, Code 2011, 25 is amended to read as follows: 26 12. The board of supervisors may credit funds to 27 a reserve for the purposes authorized by subsection 28 11 of this section ; section 331.424, subsection 1 , 29 paragraph “a” , subparagraph (6); and section 331.441, 30 subsection 2 , paragraph “b” . Moneys credited to the 31 reserve, and interest earned on such moneys, shall 32 remain in the reserve until expended for purposes 33 authorized by subsection 11 of this section ; section 34 331.424, subsection 1 , paragraph “a” , subparagraph (6); 35 or section 331.441, subsection 2 , paragraph “b” . 36 Sec. 13. Section 331.421, subsections 1 and 10, 37 Code 2011, are amended by striking the subsections. 38 Sec. 14. Section 331.421, Code 2011, is amended by 39 adding the following new subsection: 40 NEW SUBSECTION . 7A. “Item” means a budgeted 41 expenditure, appropriation, or cash reserve from a 42 fund for a service area, program, program element, or 43 purpose. 44 Sec. 15. Section 331.423, Code 2011, is amended by 45 striking the section and inserting in lieu thereof the 46 following: 47 331.423 Property tax dollars —— maximums. 48 1. Annually, the board shall determine separate 49 property tax levy limits to pay for general county 50 -10- SF522.3105 (2) 84 md/rj 10/ 23

services and rural county services in accordance with 1 this section. The property tax levies separately 2 certified for general county services and rural county 3 services under section 331.434 shall not raise property 4 tax dollars that exceed the amount determined under 5 this section. 6 2. For purposes of this section and section 7 331.423B, unless the context otherwise requires: 8 a. “Annual growth factor” means an index, expressed 9 as a percentage, determined by the department of 10 management by January 1 of the calendar year in which 11 the budget year begins. In determining the annual 12 growth factor, the department shall calculate the 13 average of the preceding twelve-month percentage 14 change, which shall be computed on a monthly basis, 15 in the midwest consumer price index, ending with the 16 percentage change for the month of November. The 17 department shall then add that average percentage 18 change to one hundred percent. In no case, however, 19 shall the annual growth factor exceed one hundred four 20 percent. 21 b. “Boundary adjustment” means annexation, 22 severance, incorporation, or discontinuance as those 23 terms are defined in section 368.1. 24 c. “Budget year” is the fiscal year beginning 25 during the calendar year in which a budget is 26 certified. 27 d. “Current fiscal year” is the fiscal year 28 ending during the calendar year in which a budget is 29 certified. 30 e. “Net new valuation taxes” means the amount of 31 property tax dollars equal to the current fiscal year’s 32 levy rate in the county for general county services or 33 for rural county services, as applicable, multiplied by 34 the increase from the current fiscal year to the budget 35 year in taxable valuation due to the following: 36 (1) Net new construction, excluding all incremental 37 valuation that is released in any one year from a 38 division of revenue under section 260E.4 or an urban 39 renewal area for which taxes were being divided under 40 section 403.19 if the property for the valuation being 41 released remains subject to the division of revenue 42 under section 260E.4 or remains part of the urban 43 renewal area that is subject to a division of revenue 44 under section 403.19. 45 (2) Additions or improvements to existing 46 structures. 47 (3) Remodeling of existing structures for which a 48 building permit is required. 49 (4) Net boundary adjustment. 50 -11- SF522.3105 (2) 84 md/rj 11/ 23

(5) A municipality no longer dividing tax revenues 1 in an urban renewal area as provided in section 403.19 2 or a community college no longer dividing revenues as 3 provided in section 260E.4. 4 (6) That portion of taxable property located in an 5 urban revitalization area on which an exemption was 6 allowed and such exemption has expired. 7 3. a. For the fiscal year beginning July 1, 2012, 8 and subsequent fiscal years, the maximum amount of 9 property tax dollars which may be certified for levy by 10 a county for general county services and rural county 11 services shall be the maximum property tax dollars 12 calculated under paragraphs “b” and “c” , respectively. 13 b. The maximum property tax dollars that may be 14 levied for general county services is an amount equal 15 to the sum of the following: 16 (1) The annual growth factor times the current 17 fiscal year’s maximum property tax dollars for general 18 county services. 19 (2) The amount of net new valuation taxes in the 20 county. 21 c. The maximum property tax dollars that may be 22 levied for rural county services is an amount equal to 23 the sum of the following: 24 (1) The annual growth factor times the current 25 fiscal year’s maximum property tax dollars for rural 26 county services. 27 (2) The amount of net new valuation taxes in the 28 unincorporated area of the county. 29 4. a. For purposes of calculating maximum property 30 tax dollars for general county services for the fiscal 31 year beginning July 1, 2012, only, the term “current 32 fiscal year’s maximum property tax dollars” shall mean 33 the total amount of property tax dollars certified by 34 the county for general county services for the fiscal 35 year beginning July 1, 2011. 36 b. For purposes of calculating maximum property tax 37 dollars for rural county services for the fiscal year 38 beginning July 1, 2012, only, the term “current fiscal 39 year’s maximum property tax dollars” shall mean the 40 total amount of property tax dollars certified by the 41 county for rural county services for the fiscal year 42 beginning July 1, 2011. 43 5. Property taxes certified for deposit in the 44 mental health, mental retardation, and developmental 45 disabilities services fund in section 331.424A, the 46 emergency services fund in section 331.424C, the debt 47 service fund in section 331.430, any capital projects 48 fund established by the county for deposit of bond, 49 loan, or note proceeds, and any temporary increase 50 -12- SF522.3105 (2) 84 md/rj 12/ 23

approved pursuant to section 331.424, are not included 1 in the maximum amount of property tax dollars that may 2 be certified for a budget year under subsection 3. 3 6. The department of management, in consultation 4 with the county finance committee, shall adopt rules 5 to administer this section. The department shall 6 prescribe forms to be used by counties when making 7 calculations required by this section. 8 Sec. 16. NEW SECTION . 331.423B Ending fund 9 balance. 10 1. a. Budgeted ending fund balances for a budget 11 year in excess of twenty-five percent of budgeted 12 expenditures in either the general fund or rural 13 services fund for that budget year shall be explicitly 14 reserved or designated for a specific purpose. 15 b. A county is encouraged, but not required, to 16 reduce budgeted, unreserved, or undesignated ending 17 fund balances for the budget year to an amount equal 18 to approximately twenty-five percent of budgeted 19 expenditures and transfers from the general fund 20 and rural services fund for that budget year unless 21 a decision is certified by the state appeal board 22 ordering a reduction in the ending fund balance of any 23 of those funds. 24 c. In a protest to the county budget under section 25 331.436, the county shall have the burden of proving 26 that the budgeted balances in excess of twenty-five 27 percent are reasonably likely to be appropriated for 28 the explicitly reserved or designated specific purpose. 29 The excess budgeted balance for the specific purpose 30 shall be considered an increase in an item in the 31 budget for purposes of section 24.28. 32 2. a. For a county that has, as of June 30, 2011, 33 reduced its actual ending fund balance to less than 34 twenty-five percent of actual expenditures, additional 35 property taxes may be computed and levied as provided 36 in this subsection. The additional property tax levy 37 amount is an amount not to exceed twenty-five percent 38 of actual expenditures from the general fund and rural 39 services fund for the fiscal year beginning July 1, 40 2010, minus the combined ending fund balances for those 41 funds for that year. 42 b. The amount of the additional property taxes 43 shall be apportioned between the general fund and the 44 rural services fund. However, the amount apportioned 45 for general county services and for rural county 46 services shall not exceed for each fund twenty-five 47 percent of actual expenditures for the fiscal year 48 beginning July 1, 2010. 49 c. All or a portion of additional property tax 50 -13- SF522.3105 (2) 84 md/rj 13/ 23

dollars may be levied for the purpose of increasing 1 cash reserves for general county services and rural 2 county services in the budget year. The additional 3 property tax dollars authorized under this subsection 4 but not levied may be carried forward as unused ending 5 fund balance taxing authority until and for the fiscal 6 year beginning July 1, 2017. The amount carried 7 forward shall not exceed twenty-five percent of the 8 maximum amount of property tax dollars available in 9 the current fiscal year. Additionally, property taxes 10 that are levied as unused ending fund balance taxing 11 authority under this subsection may be the subject of 12 a protest under section 331.436, and the amount will 13 be considered an increase in an item in the budget for 14 purposes of section 24.28. The amount of additional 15 property taxes levied under this subsection shall not 16 be included in the computation of the maximum amount of 17 property tax dollars which may be certified and levied 18 under section 331.423. 19 Sec. 17. Section 331.424, Code 2011, is amended by 20 striking the section and inserting in lieu thereof the 21 following: 22 331.424 Authority to levy beyond maximum property 23 tax dollars. 24 1. The board may certify additions to the maximum 25 amount of property tax dollars to be levied for 26 a period of time not to exceed two years if the 27 proposition has been submitted at a special election 28 and received a favorable majority of the votes cast on 29 the proposition. 30 2. The special election is subject to the 31 following: 32 a. The board must give at least thirty-two days’ 33 notice to the county commissioner of elections that the 34 special election is to be held. In no case, however, 35 shall a notice be given to the county commissioner 36 of elections after December 31 for an election on a 37 proposition to exceed the statutory limits during the 38 fiscal year beginning in the next calendar year. 39 b. The special election shall be conducted by the 40 county commissioner of elections in accordance with 41 law. 42 c. The proposition to be submitted shall be 43 substantially in the following form: 44 Vote “yes” or “no” on the following: Shall the 45 county of _______ levy for an additional $_______ each 46 year for ___ years beginning July 1, _____, in excess 47 of the statutory limits otherwise applicable for the 48 (general county services or rural services) fund? 49 d. The canvass shall be held beginning at 1:00 p.m. 50 -14- SF522.3105 (2) 84 md/rj 14/ 23