House
File
697
H-1735
Amend
House
File
697
as
follows:
1
1.
Page
475,
by
striking
lines
19
through
23
and
2
inserting:
3
<
DIVISION
___
4
EDUCATION
FINANCE
5
REGULAR
PROGRAM
FOUNDATION
BASE
6
Sec.
___.
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-seven
and
five-tenths
percent
of
the
regular
18
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
eighty-eight
percent
of
the
regular
program
state
cost
22
per
pupil.
23
(d)
For
the
budget
year
commencing
July
1,
2014,
24
the
regular
program
foundation
base
per
pupil
is
25
eighty-eight
and
five-tenths
percent
of
the
regular
26
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
eighty-nine
percent
of
the
regular
program
state
cost
30
per
pupil.
31
(f)
For
the
budget
year
commencing
July
1,
2016,
32
the
regular
program
foundation
base
per
pupil
is
33
eighty-nine
and
five-tenths
percent
of
the
regular
34
program
state
cost
per
pupil.
35
(g)
For
the
budget
year
commencing
July
1,
2017,
36
and
succeeding
budget
years,
the
regular
program
37
foundation
base
per
pupil
is
ninety
percent
of
the
38
regular
program
state
cost
per
pupil.
39
(2)
For
each
budget
year,
the
special
education
40
support
services
foundation
base
is
seventy-nine
41
percent
of
the
special
education
support
services
state
42
cost
per
pupil.
The
combined
foundation
base
is
the
43
sum
of
the
regular
program
foundation
base,
the
special
44
education
support
services
foundation
base,
the
total
45
teacher
salary
supplement
district
cost,
the
total
46
professional
development
supplement
district
cost,
the
47
total
early
intervention
supplement
district
cost,
the
48
total
area
education
agency
teacher
salary
supplement
49
district
cost,
and
the
total
area
education
agency
50
-1-
HF697.3313
(1)
84
md/nh
1/
30
#1.
professional
development
supplement
district
cost.
1
DIVISION
___
2
PROPERTY
TAX
3
PROPERTY
ASSESSMENT
LIMITATIONS
4
Sec.
___.
Section
441.21,
subsection
4,
Code
2011,
5
is
amended
to
read
as
follows:
6
4.
For
valuations
established
as
of
January
7
1,
1979,
the
percentage
of
actual
value
at
which
8
agricultural
and
residential
property
shall
be
assessed
9
shall
be
the
quotient
of
the
dividend
and
divisor
as
10
defined
in
this
section
.
The
dividend
for
each
class
11
of
property
shall
be
the
dividend
as
determined
for
12
each
class
of
property
for
valuations
established
as
13
of
January
1,
1978,
adjusted
by
the
product
obtained
14
by
multiplying
the
percentage
determined
for
that
year
15
by
the
amount
of
any
additions
or
deletions
to
actual
16
value,
excluding
those
resulting
from
the
revaluation
17
of
existing
properties,
as
reported
by
the
assessors
18
on
the
abstracts
of
assessment
for
1978,
plus
six
19
percent
of
the
amount
so
determined.
However,
if
the
20
difference
between
the
dividend
so
determined
for
21
either
class
of
property
and
the
dividend
for
that
22
class
of
property
for
valuations
established
as
of
23
January
1,
1978,
adjusted
by
the
product
obtained
by
24
multiplying
the
percentage
determined
for
that
year
25
by
the
amount
of
any
additions
or
deletions
to
actual
26
value,
excluding
those
resulting
from
the
revaluation
27
of
existing
properties,
as
reported
by
the
assessors
28
on
the
abstracts
of
assessment
for
1978,
is
less
than
29
six
percent,
the
1979
dividend
for
the
other
class
of
30
property
shall
be
the
dividend
as
determined
for
that
31
class
of
property
for
valuations
established
as
of
32
January
1,
1978,
adjusted
by
the
product
obtained
by
33
multiplying
the
percentage
determined
for
that
year
34
by
the
amount
of
any
additions
or
deletions
to
actual
35
value,
excluding
those
resulting
from
the
revaluation
36
of
existing
properties,
as
reported
by
the
assessors
on
37
the
abstracts
of
assessment
for
1978,
plus
a
percentage
38
of
the
amount
so
determined
which
is
equal
to
the
39
percentage
by
which
the
dividend
as
determined
for
the
40
other
class
of
property
for
valuations
established
as
41
of
January
1,
1978,
adjusted
by
the
product
obtained
42
by
multiplying
the
percentage
determined
for
that
year
43
by
the
amount
of
any
additions
or
deletions
to
actual
44
value,
excluding
those
resulting
from
the
revaluation
45
of
existing
properties,
as
reported
by
the
assessors
46
on
the
abstracts
of
assessment
for
1978,
is
increased
47
in
arriving
at
the
1979
dividend
for
the
other
class
48
of
property.
The
divisor
for
each
class
of
property
49
shall
be
the
total
actual
value
of
all
such
property
50
-2-
HF697.3313
(1)
84
md/nh
2/
30
in
the
state
in
the
preceding
year,
as
reported
by
the
1
assessors
on
the
abstracts
of
assessment
submitted
2
for
1978,
plus
the
amount
of
value
added
to
said
3
total
actual
value
by
the
revaluation
of
existing
4
properties
in
1979
as
equalized
by
the
director
of
5
revenue
pursuant
to
section
441.49
.
The
director
shall
6
utilize
information
reported
on
abstracts
of
assessment
7
submitted
pursuant
to
section
441.45
in
determining
8
such
percentage.
For
valuations
established
as
of
9
January
1,
1980,
and
each
assessment
year
thereafter
10
beginning
before
January
1,
2012
,
the
percentage
of
11
actual
value
as
equalized
by
the
director
of
revenue
12
as
provided
in
section
441.49
at
which
agricultural
13
and
residential
property
shall
be
assessed
shall
be
14
calculated
in
accordance
with
the
methods
provided
15
herein
including
the
limitation
of
increases
in
16
agricultural
and
residential
assessed
values
to
the
17
percentage
increase
of
the
other
class
of
property
if
18
the
other
class
increases
less
than
the
allowable
limit
19
adjusted
to
include
the
applicable
and
current
values
20
as
equalized
by
the
director
of
revenue,
except
that
21
any
references
to
six
percent
in
this
subsection
shall
22
be
four
percent.
For
valuations
established
as
of
23
January
1,
2012,
and
each
assessment
year
thereafter,
24
the
percentage
of
actual
value
as
equalized
by
the
25
director
of
revenue
as
provided
in
section
441.49
at
26
which
agricultural
and
residential
property
shall
be
27
assessed
shall
be
calculated
in
accordance
with
the
28
methods
provided
herein
including
the
limitation
of
29
increases
in
agricultural
and
residential
assessed
30
values
to
the
percentage
increase
of
the
other
class
31
of
property
if
the
other
class
increases
less
than
the
32
allowable
limit
adjusted
to
include
the
applicable
and
33
current
values
as
equalized
by
the
director
of
revenue,
34
except
that
any
references
to
six
percent
in
this
35
subsection
shall
be
two
percent.
36
Sec.
___.
Section
441.21,
subsection
5,
Code
2011,
37
is
amended
to
read
as
follows:
38
5.
a.
For
valuations
established
as
of
January
39
1,
1979,
commercial
property
and
industrial
property,
40
excluding
properties
referred
to
in
section
427A.1,
41
subsection
8
,
shall
be
assessed
as
a
percentage
of
42
the
actual
value
of
each
class
of
property.
The
43
percentage
shall
be
determined
for
each
class
of
44
property
by
the
director
of
revenue
for
the
state
in
45
accordance
with
the
provisions
of
this
section
.
For
46
valuations
established
as
of
January
1,
1979,
the
47
percentage
shall
be
the
quotient
of
the
dividend
and
48
divisor
as
defined
in
this
section
.
The
dividend
49
for
each
class
of
property
shall
be
the
total
actual
50
-3-
HF697.3313
(1)
84
md/nh
3/
30
valuation
for
each
class
of
property
established
for
1
1978,
plus
six
percent
of
the
amount
so
determined.
2
The
divisor
for
each
class
of
property
shall
be
the
3
valuation
for
each
class
of
property
established
for
4
1978,
as
reported
by
the
assessors
on
the
abstracts
5
of
assessment
for
1978,
plus
the
amount
of
value
6
added
to
the
total
actual
value
by
the
revaluation
7
of
existing
properties
in
1979
as
equalized
by
the
8
director
of
revenue
pursuant
to
section
441.49
.
For
9
valuations
established
as
of
January
1,
1979,
property
10
valued
by
the
department
of
revenue
pursuant
to
11
chapters
428
,
433
,
437
,
and
438
shall
be
considered
12
as
one
class
of
property
and
shall
be
assessed
as
a
13
percentage
of
its
actual
value.
The
percentage
shall
14
be
determined
by
the
director
of
revenue
in
accordance
15
with
the
provisions
of
this
section
.
For
valuations
16
established
as
of
January
1,
1979,
the
percentage
17
shall
be
the
quotient
of
the
dividend
and
divisor
as
18
defined
in
this
section
.
The
dividend
shall
be
the
19
total
actual
valuation
established
for
1978
by
the
20
department
of
revenue,
plus
ten
percent
of
the
amount
21
so
determined.
The
divisor
for
property
valued
by
22
the
department
of
revenue
pursuant
to
chapters
428
,
23
433
,
437
,
and
438
shall
be
the
valuation
established
24
for
1978,
plus
the
amount
of
value
added
to
the
total
25
actual
value
by
the
revaluation
of
the
property
by
26
the
department
of
revenue
as
of
January
1,
1979.
27
For
valuations
established
as
of
January
1,
1980,
28
commercial
property
and
industrial
property,
excluding
29
properties
referred
to
in
section
427A.1,
subsection
30
8
,
shall
be
assessed
at
a
percentage
of
the
actual
31
value
of
each
class
of
property.
The
percentage
32
shall
be
determined
for
each
class
of
property
by
33
the
director
of
revenue
for
the
state
in
accordance
34
with
the
provisions
of
this
section
.
For
valuations
35
established
as
of
January
1,
1980,
the
percentage
36
shall
be
the
quotient
of
the
dividend
and
divisor
as
37
defined
in
this
section
.
The
dividend
for
each
class
38
of
property
shall
be
the
dividend
as
determined
for
39
each
class
of
property
for
valuations
established
as
40
of
January
1,
1979,
adjusted
by
the
product
obtained
41
by
multiplying
the
percentage
determined
for
that
year
42
by
the
amount
of
any
additions
or
deletions
to
actual
43
value,
excluding
those
resulting
from
the
revaluation
44
of
existing
properties,
as
reported
by
the
assessors
45
on
the
abstracts
of
assessment
for
1979,
plus
four
46
percent
of
the
amount
so
determined.
The
divisor
47
for
each
class
of
property
shall
be
the
total
actual
48
value
of
all
such
property
in
1979,
as
equalized
by
49
the
director
of
revenue
pursuant
to
section
441.49
,
50
-4-
HF697.3313
(1)
84
md/nh
4/
30
plus
the
amount
of
value
added
to
the
total
actual
1
value
by
the
revaluation
of
existing
properties
in
2
1980.
The
director
shall
utilize
information
reported
3
on
the
abstracts
of
assessment
submitted
pursuant
4
to
section
441.45
in
determining
such
percentage.
5
For
valuations
established
as
of
January
1,
1980,
6
property
valued
by
the
department
of
revenue
pursuant
7
to
chapters
428
,
433
,
437
,
and
438
shall
be
assessed
8
at
a
percentage
of
its
actual
value.
The
percentage
9
shall
be
determined
by
the
director
of
revenue
in
10
accordance
with
the
provisions
of
this
section
.
For
11
valuations
established
as
of
January
1,
1980,
the
12
percentage
shall
be
the
quotient
of
the
dividend
and
13
divisor
as
defined
in
this
section
.
The
dividend
shall
14
be
the
total
actual
valuation
established
for
1979
by
15
the
department
of
revenue,
plus
eight
percent
of
the
16
amount
so
determined.
The
divisor
for
property
valued
17
by
the
department
of
revenue
pursuant
to
chapters
428
,
18
433
,
437
,
and
438
shall
be
the
valuation
established
19
for
1979,
plus
the
amount
of
value
added
to
the
total
20
actual
value
by
the
revaluation
of
the
property
by
21
the
department
of
revenue
as
of
January
1,
1980.
For
22
valuations
established
as
of
January
1,
1981,
and
23
each
year
thereafter,
the
percentage
of
actual
value
24
as
equalized
by
the
director
of
revenue
as
provided
25
in
section
441.49
at
which
commercial
property
and
26
industrial
property,
excluding
properties
referred
to
27
in
section
427A.1,
subsection
8
,
shall
be
assessed
28
shall
be
calculated
in
accordance
with
the
methods
29
provided
herein,
except
that
any
references
to
six
30
percent
in
this
subsection
shall
be
four
percent.
For
31
valuations
established
as
of
January
1,
1981,
and
32
each
year
thereafter,
the
percentage
of
actual
value
33
at
which
property
valued
by
the
department
of
revenue
34
pursuant
to
chapters
428
,
433
,
437
,
and
438
shall
be
35
assessed
shall
be
calculated
in
accordance
with
the
36
methods
provided
herein,
except
that
any
references
37
to
ten
percent
in
this
subsection
shall
be
eight
38
percent.
Beginning
with
valuations
established
as
of
39
January
1,
1979,
and
each
assessment
year
thereafter
40
beginning
before
January
1,
2012
,
property
valued
41
by
the
department
of
revenue
pursuant
to
chapter
434
42
shall
also
be
assessed
at
a
percentage
of
its
actual
43
value
which
percentage
shall
be
equal
to
the
percentage
44
determined
by
the
director
of
revenue
for
commercial
45
property,
industrial
property,
or
property
valued
by
46
the
department
of
revenue
pursuant
to
chapters
428
,
47
433
,
437
,
and
438
,
whichever
is
lowest.
For
valuations
48
established
on
or
after
January
1,
2012,
property
49
valued
by
the
department
of
revenue
pursuant
to
chapter
50
-5-
HF697.3313
(1)
84
md/nh
5/
30
434
shall
be
assessed
at
a
percentage
of
its
actual
1
value
equal
to
the
percentage
of
actual
value
at
which
2
commercial
property
is
assessed
for
the
same
assessment
3
year.
4
b.
For
valuations
established
on
or
after
January
5
1,
2012,
commercial
property,
excluding
properties
6
referred
to
in
section
427A.1,
subsection
8
,
shall
7
be
assessed
as
a
percentage
of
the
actual
value,
as
8
determined
in
this
paragraph
“b”
.
9
(1)
For
valuations
established
for
the
assessment
10
year
beginning
January
1,
2012,
the
percentage
of
11
actual
value
as
equalized
by
the
director
of
revenue
as
12
provided
in
section
441.49
at
which
commercial
property
13
shall
be
assessed
shall
be
ninety-five
percent.
14
(2)
For
valuations
established
for
the
assessment
15
year
beginning
January
1,
2013,
the
percentage
of
16
actual
value
as
equalized
by
the
director
of
revenue
as
17
provided
in
section
441.49
at
which
commercial
property
18
shall
be
assessed
shall
be
ninety
percent.
19
(3)
For
valuations
established
for
the
assessment
20
year
beginning
January
1,
2014,
the
percentage
of
21
actual
value
as
equalized
by
the
director
of
revenue
as
22
provided
in
section
441.49
at
which
commercial
property
23
shall
be
assessed
shall
be
eighty-five
percent.
24
(4)
For
valuations
established
for
the
assessment
25
year
beginning
January
1,
2015,
the
percentage
of
26
actual
value
as
equalized
by
the
director
of
revenue
as
27
provided
in
section
441.49
at
which
commercial
property
28
shall
be
assessed
shall
be
eighty
percent.
29
(5)
For
valuations
established
for
the
assessment
30
year
beginning
January
1,
2016,
and
each
assessment
31
year
thereafter,
the
percentage
of
actual
value
as
32
equalized
by
the
director
of
revenue
as
provided
in
33
section
441.49
at
which
commercial
property
shall
be
34
assessed
shall
be
seventy-five
percent.
35
c.
For
valuations
established
on
or
after
January
36
1,
2012,
industrial
property,
excluding
properties
37
referred
to
in
section
427A.1,
subsection
8,
shall
38
be
assessed
as
a
percentage
of
the
actual
value,
as
39
determined
in
this
paragraph
“c”
.
40
(1)
For
valuations
established
for
the
assessment
41
year
beginning
January
1,
2012,
the
percentage
of
42
actual
value
as
equalized
by
the
director
of
revenue
as
43
provided
in
section
441.49
at
which
industrial
property
44
shall
be
assessed
shall
be
ninety-five
percent.
45
(2)
For
valuations
established
for
the
assessment
46
year
beginning
January
1,
2013,
the
percentage
of
47
actual
value
as
equalized
by
the
director
of
revenue
as
48
provided
in
section
441.49
at
which
industrial
property
49
shall
be
assessed
shall
be
ninety
percent.
50
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(3)
For
valuations
established
for
the
assessment
1
year
beginning
January
1,
2014,
the
percentage
of
2
actual
value
as
equalized
by
the
director
of
revenue
as
3
provided
in
section
441.49
at
which
industrial
property
4
shall
be
assessed
shall
be
eighty-five
percent.
5
(4)
For
valuations
established
for
the
assessment
6
year
beginning
January
1,
2015,
the
percentage
of
7
actual
value
as
equalized
by
the
director
of
revenue
as
8
provided
in
section
441.49
at
which
industrial
property
9
shall
be
assessed
shall
be
eighty
percent.
10
(5)
For
valuations
established
for
the
assessment
11
year
beginning
January
1,
2016,
and
each
assessment
12
year
thereafter,
the
percentage
of
actual
value
as
13
equalized
by
the
director
of
revenue
as
provided
in
14
section
441.49
at
which
industrial
property
shall
be
15
assessed
shall
be
seventy-five
percent.
16
Sec.
___.
Section
441.21,
Code
2011,
is
amended
by
17
adding
the
following
new
subsection:
18
NEW
SUBSECTION
.
13.
Notwithstanding
any
provision
19
of
law
to
the
contrary,
beginning
with
valuations
20
established
on
or
after
January
1,
2012,
as
used
in
21
this
section,
“residential
property”
includes
that
22
portion
of
a
building
or
structure
and
a
proportionate
23
share
of
the
land
upon
which
the
building
or
structure
24
is
situated
that
is
used
as
a
primary
residence
by
25
the
person
who
owns
the
building
even
if
the
use
as
26
a
primary
residence
is
not
the
primary
use
of
the
27
building
or
structure.
Accordingly,
the
assessor
28
may
assign
more
than
one
classification
to
a
parcel
29
of
property
satisfying
the
requirements
of
this
30
subsection.
31
Sec.
___.
NEW
SECTION
.
441.21A
Commercial
and
32
industrial
property
tax
replacement
fund
——
annual
33
legislative
review.
34
1.
a.
There
is
created
as
a
permanent
fund
35
in
the
office
of
the
treasurer
of
state
under
the
36
control
of
the
department
of
management
a
fund
to
be
37
known
as
the
commercial
and
industrial
property
tax
38
replacement
fund,
and
for
the
purpose
of
establishing
39
and
maintaining
this
fund
for
each
fiscal
year
there
is
40
appropriated
thereto
from
funds
in
the
general
fund
not
41
otherwise
appropriated
the
following
amounts:
42
(1)
For
the
fiscal
year
beginning
July
1,
2013,
43
thirty
million
dollars.
44
(2)
For
the
fiscal
year
beginning
July
1,
2014,
45
sixty
million
dollars.
46
(3)
For
the
fiscal
year
beginning
July
1,
2015,
47
ninety
million
dollars.
48
(4)
For
the
fiscal
year
beginning
July
1,
2016,
one
49
hundred
twenty
million
dollars.
50
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(5)
For
the
fiscal
year
beginning
July
1,
2017,
and
1
each
fiscal
year
thereafter,
one
hundred
fifty
million
2
dollars.
3
b.
If
an
amount
appropriated
for
a
fiscal
year
4
is
insufficient
to
pay
all
claims,
the
department
of
5
management
shall
prorate
the
disbursements
from
the
6
fund
to
the
county
treasurers
in
the
proportion
that
7
the
total
assessed
value
of
commercial
and
industrial
8
property
located
within
the
taxing
district
for
taxes
9
payable
in
that
fiscal
year
bears
to
the
total
assessed
10
value
of
all
commercial
and
industrial
property
within
11
the
state
and
located
in
an
eligible
taxing
district.
12
The
department
of
management
shall
notify
the
county
13
auditors
of
the
pro
rata
percentage
on
or
before
July
14
15.
15
c.
The
replacement
claims
shall
be
paid
to
each
16
county
treasurer
in
equal
installments
in
September
17
and
March
of
each
year.
The
county
treasurer
shall
18
apportion
the
replacement
claim
payments
among
the
19
eligible
taxing
districts
in
the
county.
20
d.
Any
balance
in
the
commercial
and
industrial
21
property
tax
replacement
fund
on
June
30
shall
be
22
transferred
to
the
taxpayers
trust
fund
created
in
23
section
8.57E
and
used
for
the
purposes
specified
in
24
that
section.
25
2.
Beginning
with
the
fiscal
year
beginning
July
26
1,
2013,
each
county
treasurer
shall
be
paid
from
the
27
commercial
and
industrial
property
tax
replacement
fund
28
an
amount,
subject
to
the
limitations
of
this
section,
29
equal
to
the
amount
of
the
commercial
and
industrial
30
property
tax
replacement
claim,
as
calculated
in
31
subsection
4.
32
3.
On
or
before
March
1
of
each
year,
the
assessor
33
shall
determine
the
total
assessed
value
of
all
34
commercial
and
industrial
property
assessed
for
taxes
35
payable
in
the
next
fiscal
year
and
the
total
assessed
36
value
of
all
commercial
and
industrial
property
37
assessed
as
of
January
1,
2011,
and
shall
report
the
38
valuations
to
the
county
auditor.
39
4.
On
or
before
May
15
of
each
year,
the
county
40
auditor
shall
prepare
a
statement,
based
upon
the
41
report
received
pursuant
to
subsection
3,
listing
for
42
each
taxing
district
in
the
county:
43
a.
Beginning
with
the
assessment
year
beginning
44
January
1,
2012,
the
difference
between
the
assessed
45
valuation
of
all
commercial
and
industrial
property
46
for
that
year
and
the
total
assessed
value
of
all
47
commercial
and
industrial
property
assessed
as
of
48
January
1,
2011.
If
the
total
assessed
value
of
the
49
property
assessed
as
of
January
1,
2011,
is
less,
50
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there
is
no
commercial
and
industrial
property
tax
1
replacement
for
the
fiscal
year.
2
b.
The
tax
levy
rate
for
each
taxing
district
for
3
the
current
fiscal
year.
However,
the
applicable
tax
4
levy
rate
for
a
school
district
shall
be
the
total
of
5
all
levy
rates
for
the
school
district
for
the
current
6
fiscal
year
excluding
the
foundation
property
tax
levy
7
under
section
257.3,
subsection
1.
8
c.
The
commercial
and
industrial
property
tax
9
replacement
claim
for
each
taxing
district.
For
10
fiscal
years
beginning
on
or
after
July
1,
2013,
the
11
replacement
claim
is
equal
to
seventy-five
percent
12
of
the
amount
determined
pursuant
to
paragraph
“a”
,
13
multiplied
by
the
tax
rate
specified
in
paragraph
“b”
.
14
5.
The
county
auditor
shall
certify
and
forward
one
15
copy
of
the
statement
to
the
department
of
management
16
not
later
than
July
1
of
each
year.
17
6.
For
purposes
of
determining
replacement
amounts
18
under
this
section,
that
portion
of
an
urban
renewal
19
area
defined
as
the
sum
of
the
assessed
valuations
20
defined
in
section
403.19,
subsections
1
and
2,
shall
21
be
considered
a
taxing
district.
The
amount
of
the
22
replacement
claim
shall
first
be
credited
to
the
23
portion
of
assessed
value
defined
in
section
403.19,
24
subsection
2.
The
amount
not
allocated
to
that
portion
25
of
assessed
value
defined
in
section
403.19,
subsection
26
2,
shall
be
credited
to
the
portion
of
assessed
value
27
defined
in
section
403.19,
subsection
1.
28
7.
The
committee
on
ways
and
means
of
the
senate
29
and
the
committee
on
ways
and
means
of
the
house
of
30
representatives
shall
each
conduct
an
annual
review
of
31
the
implementation
and
fiscal
impact
of
the
commercial,
32
industrial,
and
railway
property
assessment
limitations
33
established
under
section
441.21,
subsection
5,
on
34
local
taxing
authorities
in
this
state.
35
Sec.
___.
SAVINGS
PROVISION.
This
division
of
this
36
Act,
pursuant
to
section
4.13,
does
not
affect
the
37
operation
of,
or
prohibit
the
application
of,
prior
38
provisions
of
section
441.21,
or
rules
adopted
under
39
chapter
17A
to
administer
prior
provisions
of
section
40
441.21,
for
assessment
years
beginning
before
January
41
1,
2012,
and
for
duties,
powers,
protests,
appeals,
42
proceedings,
actions,
or
remedies
attributable
to
an
43
assessment
year
beginning
before
January
1,
2012.
44
Sec.
___.
APPLICABILITY.
This
division
of
this
Act
45
applies
to
property
tax
assessment
years
beginning
on
46
or
after
January
1,
2012.
47
DIVISION
___
48
COUNTY
AND
CITY
BUDGET
LIMITATION
49
Sec.
___.
Section
23A.2,
subsection
10,
paragraph
50
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30
h,
Code
2011,
is
amended
to
read
as
follows:
1
h.
The
performance
of
an
activity
listed
in
2
section
331.424
,
Code
2011,
as
a
service
for
which
a
3
supplemental
levy
county
may
be
certified
include
in
4
its
budget
.
5
Sec.
___.
Section
28M.5,
subsection
2,
Code
2011,
6
is
amended
to
read
as
follows:
7
2.
If
a
regional
transit
district
budget
allocates
8
revenue
responsibilities
to
the
board
of
supervisors
9
of
a
participating
county,
the
amount
of
the
regional
10
transit
district
levy
that
is
the
responsibility
of
the
11
participating
county
shall
be
deducted
from
the
maximum
12
rates
amount
of
taxes
authorized
to
be
levied
by
the
13
county
pursuant
to
section
331.423
,
subsections
1
and
14
2
subsection
3,
paragraphs
“b”
and
“c”
,
as
applicable,
15
unless
the
county
meets
its
revenue
responsibilities
as
16
allocated
in
the
budget
from
other
available
revenue
17
sources.
However,
for
a
regional
transit
district
18
that
includes
a
county
with
a
population
of
less
than
19
three
hundred
thousand,
the
amount
of
the
regional
20
transit
district
levy
that
is
the
responsibility
of
21
such
participating
county
shall
be
deducted
from
the
22
maximum
rate
amount
of
taxes
authorized
to
be
levied
23
by
the
county
pursuant
to
section
331.423,
subsection
24
1
3,
paragraph
“b”
.
25
Sec.
___.
Section
123.38,
subsection
2,
Code
2011,
26
is
amended
to
read
as
follows:
27
2.
Any
licensee
or
permittee,
or
the
licensee’s
28
or
permittee’s
executor
or
administrator,
or
any
29
person
duly
appointed
by
the
court
to
take
charge
of
30
and
administer
the
property
or
assets
of
the
licensee
31
or
permittee
for
the
benefit
of
the
licensee’s
or
32
permittee’s
creditors,
may
voluntarily
surrender
a
33
license
or
permit
to
the
division.
When
a
license
34
or
permit
is
surrendered
the
division
shall
notify
35
the
local
authority,
and
the
division
or
the
local
36
authority
shall
refund
to
the
person
surrendering
the
37
license
or
permit,
a
proportionate
amount
of
the
fee
38
received
by
the
division
or
the
local
authority
for
39
the
license
or
permit
as
follows:
if
a
license
or
40
permit
is
surrendered
during
the
first
three
months
41
of
the
period
for
which
it
was
issued,
the
refund
42
shall
be
three-fourths
of
the
amount
of
the
fee;
43
if
surrendered
more
than
three
months
but
not
more
44
than
six
months
after
issuance,
the
refund
shall
be
45
one-half
of
the
amount
of
the
fee;
if
surrendered
more
46
than
six
months
but
not
more
than
nine
months
after
47
issuance,
the
refund
shall
be
one-fourth
of
the
amount
48
of
the
fee.
No
refund
shall
be
made,
however,
for
49
any
special
liquor
permit,
nor
for
a
liquor
control
50
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license,
wine
permit,
or
beer
permit
surrendered
more
1
than
nine
months
after
issuance.
For
purposes
of
this
2
subsection,
any
portion
of
license
or
permit
fees
3
used
for
the
purposes
authorized
in
section
331.424,
4
subsection
1
,
paragraph
“a”
,
subparagraphs
(1)
and
5
(2),
Code
2011,
and
in
section
331.424A
,
shall
not
be
6
deemed
received
either
by
the
division
or
by
a
local
7
authority.
No
refund
shall
be
made
to
any
licensee
or
8
permittee,
upon
the
surrender
of
the
license
or
permit,
9
if
there
is
at
the
time
of
surrender,
a
complaint
filed
10
with
the
division
or
local
authority,
charging
the
11
licensee
or
permittee
with
a
violation
of
this
chapter
.
12
If
upon
a
hearing
on
a
complaint
the
license
or
permit
13
is
not
revoked
or
suspended,
then
the
licensee
or
14
permittee
is
eligible,
upon
surrender
of
the
license
15
or
permit,
to
receive
a
refund
as
provided
in
this
16
section
;
but
if
the
license
or
permit
is
revoked
or
17
suspended
upon
hearing
the
licensee
or
permittee
is
not
18
eligible
for
the
refund
of
any
portion
of
the
license
19
or
permit
fee.
20
Sec.
___.
Section
218.99,
Code
2011,
is
amended
to
21
read
as
follows:
22
218.99
Counties
to
be
notified
of
patients’
personal
23
accounts.
24
The
administrator
in
control
of
a
state
institution
25
shall
direct
the
business
manager
of
each
institution
26
under
the
administrator’s
jurisdiction
which
is
27
mentioned
in
section
331.424,
subsection
1
,
paragraph
28
“a”
,
subparagraphs
(1)
and
(2),
and
for
which
services
29
are
paid
under
section
331.424A
,
to
quarterly
inform
30
the
county
of
legal
settlement’s
entity
designated
to
31
perform
the
county’s
central
point
of
coordination
32
process
of
any
patient
or
resident
who
has
an
amount
33
in
excess
of
two
hundred
dollars
on
account
in
the
34
patients’
personal
deposit
fund
and
the
amount
on
35
deposit.
The
administrators
shall
direct
the
business
36
manager
to
further
notify
the
entity
designated
to
37
perform
the
county’s
central
point
of
coordination
38
process
at
least
fifteen
days
before
the
release
of
39
funds
in
excess
of
two
hundred
dollars
or
upon
the
40
death
of
the
patient
or
resident.
If
the
patient
or
41
resident
has
no
county
of
legal
settlement,
notice
42
shall
be
made
to
the
director
of
human
services
and
the
43
administrator
in
control
of
the
institution
involved.
44
Sec.
___.
Section
331.263,
subsection
2,
Code
2011,
45
is
amended
to
read
as
follows:
46
2.
The
governing
body
of
the
community
commonwealth
47
shall
have
the
authority
to
levy
county
taxes
and
shall
48
have
the
authority
to
levy
city
taxes
to
the
extent
the
49
city
tax
levy
authority
is
transferred
by
the
charter
50
-11-
HF697.3313
(1)
84
md/nh
11/
30
to
the
community
commonwealth.
A
city
participating
1
in
the
community
commonwealth
shall
transfer
a
portion
2
of
the
city’s
tax
levy
authorized
under
section
384.1
3
or
384.12
,
whichever
is
applicable,
to
the
governing
4
body
of
the
community
commonwealth.
The
maximum
5
rates
amount
of
taxes
authorized
to
be
levied
under
6
sections
section
384.1
and
the
maximum
amount
of
taxes
7
authorized
to
be
levied
under
section
384.12
by
a
city
8
participating
in
the
community
commonwealth
shall
be
9
reduced
by
an
amount
equal
to
the
rates
of
the
same
or
10
similar
taxes
levied
in
the
city
by
the
governing
body
11
of
the
community
commonwealth.
12
Sec.
___.
Section
331.301,
subsection
12,
Code
13
2011,
is
amended
to
read
as
follows:
14
12.
The
board
of
supervisors
may
credit
funds
to
15
a
reserve
for
the
purposes
authorized
by
subsection
16
11
of
this
section
;
section
331.424,
subsection
1
,
17
paragraph
“a”
,
subparagraph
(6);
and
section
331.441,
18
subsection
2
,
paragraph
“b”
.
Moneys
credited
to
the
19
reserve,
and
interest
earned
on
such
moneys,
shall
20
remain
in
the
reserve
until
expended
for
purposes
21
authorized
by
subsection
11
of
this
section
;
section
22
331.424,
subsection
1
,
paragraph
“a”
,
subparagraph
(6);
23
or
section
331.441,
subsection
2
,
paragraph
“b”
.
24
Sec.
___.
Section
331.421,
subsections
1
and
10,
25
Code
2011,
are
amended
by
striking
the
subsections.
26
Sec.
___.
Section
331.421,
Code
2011,
is
amended
by
27
adding
the
following
new
subsection:
28
NEW
SUBSECTION
.
7A.
“Item”
means
a
budgeted
29
expenditure,
appropriation,
or
cash
reserve
from
a
30
fund
for
a
service
area,
program,
program
element,
or
31
purpose.
32
Sec.
___.
Section
331.423,
Code
2011,
is
amended
by
33
striking
the
section
and
inserting
in
lieu
thereof
the
34
following:
35
331.423
Property
tax
dollars
——
maximums.
36
1.
Annually,
the
board
shall
determine
separate
37
property
tax
levy
limits
to
pay
for
general
county
38
services
and
rural
county
services
in
accordance
with
39
this
section.
The
property
tax
levies
separately
40
certified
for
general
county
services
and
rural
county
41
services
under
section
331.434
shall
not
raise
property
42
tax
dollars
that
exceed
the
amount
determined
under
43
this
section.
44
2.
For
purposes
of
this
section
and
section
45
331.423B,
unless
the
context
otherwise
requires:
46
a.
“Annual
growth
factor”
means
an
index,
expressed
47
as
a
percentage,
determined
by
the
department
of
48
management
by
January
1
of
the
calendar
year
in
which
49
the
budget
year
begins.
In
determining
the
annual
50
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HF697.3313
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84
md/nh
12/
30
growth
factor,
the
department
shall
calculate
the
1
average
of
the
preceding
twelve-month
percentage
2
change,
which
shall
be
computed
on
a
monthly
basis,
3
in
the
midwest
consumer
price
index,
ending
with
the
4
percentage
change
for
the
month
of
November.
The
5
department
shall
then
add
that
average
percentage
6
change
to
one
hundred
percent.
In
no
case,
however,
7
shall
the
annual
growth
factor
exceed
one
hundred
four
8
percent.
9
b.
“Boundary
adjustment”
means
annexation,
10
severance,
incorporation,
or
discontinuance
as
those
11
terms
are
defined
in
section
368.1.
12
c.
“Budget
year”
is
the
fiscal
year
beginning
13
during
the
calendar
year
in
which
a
budget
is
14
certified.
15
d.
“Current
fiscal
year”
is
the
fiscal
year
16
ending
during
the
calendar
year
in
which
a
budget
is
17
certified.
18
e.
“Net
new
valuation
taxes”
means
the
amount
of
19
property
tax
dollars
equal
to
the
current
fiscal
year’s
20
levy
rate
in
the
county
for
general
county
services
or
21
for
rural
county
services,
as
applicable,
multiplied
by
22
the
increase
from
the
current
fiscal
year
to
the
budget
23
year
in
taxable
valuation
due
to
the
following:
24
(1)
Net
new
construction,
excluding
all
incremental
25
valuation
that
is
released
in
any
one
year
from
a
26
division
of
revenue
under
section
260E.4
or
an
urban
27
renewal
area
for
which
taxes
were
being
divided
under
28
section
403.19
if
the
property
for
the
valuation
being
29
released
remains
subject
to
the
division
of
revenue
30
under
section
260E.4
or
remains
part
of
the
urban
31
renewal
area
that
is
subject
to
a
division
of
revenue
32
under
section
403.19.
33
(2)
Additions
or
improvements
to
existing
34
structures.
35
(3)
Remodeling
of
existing
structures
for
which
a
36
building
permit
is
required.
37
(4)
Net
boundary
adjustment.
38
(5)
A
municipality
no
longer
dividing
tax
revenues
39
in
an
urban
renewal
area
as
provided
in
section
403.19
40
or
a
community
college
no
longer
dividing
revenues
as
41
provided
in
section
260E.4.
42
(6)
That
portion
of
taxable
property
located
in
an
43
urban
revitalization
area
on
which
an
exemption
was
44
allowed
and
such
exemption
has
expired.
45
3.
a.
For
the
fiscal
year
beginning
July
1,
2012,
46
and
subsequent
fiscal
years,
the
maximum
amount
of
47
property
tax
dollars
which
may
be
certified
for
levy
by
48
a
county
for
general
county
services
and
rural
county
49
services
shall
be
the
maximum
property
tax
dollars
50
-13-
HF697.3313
(1)
84
md/nh
13/
30
calculated
under
paragraphs
“b”
and
“c”
,
respectively.
1
b.
The
maximum
property
tax
dollars
that
may
be
2
levied
for
general
county
services
is
an
amount,
3
following
the
subtraction
of
replacement
claim
amounts
4
to
be
received
under
section
441.21A
during
the
budget
5
year
that
are
the
result
of
the
levy
rate
for
general
6
county
services,
equal
to
the
sum
of
the
following:
7
(1)
The
annual
growth
factor
times
the
sum
of
the
8
current
fiscal
year’s
maximum
property
tax
dollars
9
for
general
county
services
and
the
amount
of
all
10
replacement
claim
amounts
received
under
section
11
441.21A
during
the
current
fiscal
year
that
are
the
12
result
of
the
levy
rate
for
general
county
services.
13
(2)
The
amount
of
net
new
valuation
taxes
in
the
14
county.
15
c.
The
maximum
property
tax
dollars
that
may
16
be
levied
for
rural
county
services
is
an
amount,
17
following
the
subtraction
of
replacement
claim
amounts
18
to
be
received
under
section
441.21A
during
the
budget
19
year
that
are
the
result
of
the
levy
rate
for
rural
20
county
services,
equal
to
the
sum
of
the
following:
21
(1)
The
annual
growth
factor
times
the
sum
of
the
22
current
fiscal
year’s
maximum
property
tax
dollars
for
23
rural
county
services
and
the
amount
of
all
replacement
24
claim
amounts
received
under
section
441.21A
during
the
25
current
fiscal
year
that
are
the
result
of
the
levy
26
rate
for
rural
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
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HF697.3313
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84
md/nh
14/
30
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.
___.
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
-15-
HF697.3313
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30
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.
___.
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
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30
on
the
second
day
which
is
not
a
holiday
following
the
1
special
election.
2
e.
Notice
of
the
special
election
shall
be
3
published
at
least
once
in
a
newspaper
as
specified
4
in
section
331.305
prior
to
the
date
of
the
special
5
election.
The
notice
shall
appear
as
early
as
6
practicable
after
the
board
has
voted
to
submit
a
7
proposition
to
the
voters
to
levy
additional
property
8
tax
dollars.
9
3.
Registered
voters
in
the
county
may
vote
on
the
10
proposition
to
increase
property
taxes
for
the
general
11
fund
in
excess
of
the
statutory
limit.
Registered
12
voters
residing
outside
the
corporate
limits
of
a
13
city
within
the
county
may
vote
on
the
proposition
to
14
increase
property
taxes
for
the
rural
services
fund
in
15
excess
of
the
statutory
limit.
16
4.
The
amount
of
additional
property
tax
dollars
17
certified
under
this
section
shall
not
be
included
in
18
the
computation
of
the
maximum
amount
of
property
tax
19
dollars
which
may
be
certified
and
levied
under
section
20
331.423.
21
Sec.
___.
Section
331.424A,
subsection
4,
Code
22
2011,
is
amended
to
read
as
follows:
23
4.
For
the
fiscal
year
beginning
July
1,
1996,
24
and
for
each
subsequent
fiscal
year,
the
county
shall
25
certify
a
levy
for
payment
of
services.
For
each
26
fiscal
year,
county
revenues
from
taxes
imposed
by
the
27
county
credited
to
the
services
fund
shall
not
exceed
28
an
amount
equal
to
the
amount
of
base
year
expenditures
29
for
services
as
defined
in
section
331.438
,
less
the
30
amount
of
property
tax
relief
to
be
received
pursuant
31
to
section
426B.2
,
in
the
fiscal
year
for
which
the
32
budget
is
certified.
The
county
auditor
and
the
33
board
of
supervisors
shall
reduce
the
amount
of
the
34
levy
certified
for
the
services
fund
by
the
amount
of
35
property
tax
relief
to
be
received.
A
levy
certified
36
under
this
section
is
not
subject
to
the
appeal
37
provisions
of
section
331.426
or
to
any
other
provision
38
in
law
authorizing
a
county
to
exceed,
increase,
or
39
appeal
a
property
tax
levy
limit.
40
Sec.
___.
Section
331.427,
subsection
3,
paragraph
41
l,
Code
2011,
is
amended
to
read
as
follows:
42
l.
Services
listed
in
section
331.424,
subsection
43
1
,
Code
2011,
and
section
331.554
.
44
Sec.
___.
Section
331.428,
subsection
2,
paragraph
45
d,
Code
2011,
is
amended
to
read
as
follows:
46
d.
Services
listed
under
section
331.424,
47
subsection
2
,
Code
2011
.
48
Sec.
___.
Section
331.434,
subsection
1,
Code
2011,
49
is
amended
to
read
as
follows:
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1.
The
budget
shall
show
the
amount
required
for
1
each
class
of
proposed
expenditures,
a
comparison
of
2
the
amounts
proposed
to
be
expended
with
the
amounts
3
expended
for
like
purposes
for
the
two
preceding
years,
4
the
revenues
from
sources
other
than
property
taxation,
5
and
the
amount
to
be
raised
by
property
taxation,
in
6
the
detail
and
form
prescribed
by
the
director
of
the
7
department
of
management.
For
each
county
that
has
8
established
an
urban
renewal
area,
the
budget
shall
9
include
estimated
and
actual
tax
increment
financing
10
revenues
and
all
estimated
and
actual
expenditures
of
11
the
revenues,
proceeds
from
debt
and
all
estimated
12
and
actual
expenditures
of
the
debt
proceeds,
and
13
identification
of
any
entity
receiving
a
direct
payment
14
of
taxes
funded
by
tax
increment
financing
revenues
15
and
shall
include
the
total
amount
of
loans,
advances,
16
indebtedness,
or
bonds
outstanding
at
the
close
of
17
the
most
recently
ended
fiscal
year,
which
qualify
18
for
payment
from
the
special
fund
created
in
section
19
403.19
,
including
interest
negotiated
on
such
loans,
20
advances,
indebtedness,
or
bonds.
For
purposes
of
this
21
subsection
,
“indebtedness”
includes
written
agreements
22
whereby
the
county
agrees
to
suspend,
abate,
exempt,
23
rebate,
refund,
or
reimburse
property
taxes,
provide
a
24
grant
for
property
taxes
paid,
or
make
a
direct
payment
25
of
taxes,
with
moneys
in
the
special
fund.
The
amount
26
of
loans,
advances,
indebtedness,
or
bonds
shall
be
27
listed
in
the
aggregate
for
each
county
reporting.
The
28
county
finance
committee,
in
consultation
with
the
29
department
of
management
and
the
legislative
services
30
agency,
shall
determine
reporting
criteria
and
shall
31
prepare
a
form
for
reports
filed
with
the
department
32
pursuant
to
this
section
.
The
department
shall
make
33
the
information
available
by
electronic
means.
34
Sec.
___.
Section
373.10,
Code
2011,
is
amended
to
35
read
as
follows:
36
373.10
Taxing
authority.
37
The
metropolitan
council
shall
have
the
authority
38
to
levy
city
taxes
to
the
extent
the
city
tax
levy
39
authority
is
transferred
by
the
charter
to
the
40
metropolitan
council.
A
member
city
shall
transfer
41
a
portion
of
the
city’s
tax
levy
authorized
under
42
section
384.1
or
384.12
,
whichever
is
applicable,
to
43
the
metropolitan
council.
The
maximum
rates
amount
of
44
taxes
authorized
to
be
levied
under
sections
section
45
384.1
and
the
taxes
authorized
to
be
levied
under
46
section
384.12
by
a
member
city
shall
be
reduced
by
an
47
amount
equal
to
the
rates
of
the
same
or
similar
taxes
48
levied
in
the
city
by
the
metropolitan
council.
49
Sec.
___.
Section
384.1,
Code
2011,
is
amended
by
50
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striking
the
section
and
inserting
in
lieu
thereof
the
1
following:
2
384.1
Property
tax
dollars
——
maximums.
3
1.
A
city
shall
certify
taxes
to
be
levied
by
the
4
city
on
all
taxable
property
within
the
city
limits,
5
for
all
city
government
purposes.
Annually,
the
6
city
council
may
certify
levies
for
city
government
7
purposes,
subject
to
the
limitation
on
property
tax
8
dollars
provided
in
this
section.
9
2.
For
purposes
of
this
section
and
section
384.1B,
10
unless
the
context
otherwise
requires:
11
a.
“Annual
growth
factor”
means
an
index,
expressed
12
as
a
percentage,
determined
by
the
department
of
13
management
by
January
1
of
the
calendar
year
in
which
14
the
budget
year
begins.
In
determining
the
annual
15
growth
factor,
the
department
shall
calculate
the
16
average
of
the
preceding
twelve-month
percentage
17
change,
which
shall
be
computed
on
a
monthly
basis,
18
in
the
midwest
consumer
price
index,
ending
with
the
19
percentage
change
for
the
month
of
November.
The
20
department
shall
then
add
that
average
percentage
21
change
to
one
hundred
percent.
In
no
case,
however,
22
shall
the
annual
growth
factor
exceed
one
hundred
four
23
percent.
24
b.
“Boundary
adjustment”
means
annexation,
25
severance,
incorporation,
or
discontinuance
as
those
26
terms
are
defined
in
section
368.1.
27
c.
“Budget
year”
is
the
fiscal
year
beginning
28
during
the
calendar
year
in
which
a
budget
is
29
certified.
30
d.
“Current
fiscal
year”
is
the
fiscal
year
31
ending
during
the
calendar
year
in
which
a
budget
is
32
certified.
33
e.
“Net
new
valuation
taxes”
means
the
amount
of
34
property
tax
dollars
equal
to
the
current
fiscal
year’s
35
levy
rate
in
the
city
for
the
general
fund
and
for
the
36
trust
and
agency
funds
under
section
384.6,
subsection
37
1,
multiplied
by
the
increase
from
the
current
fiscal
38
year
to
the
budget
year
in
taxable
valuation
due
to
the
39
following:
40
(1)
Net
new
construction,
excluding
all
incremental
41
valuation
that
is
released
in
any
one
year
from
a
42
division
of
revenue
under
section
260E.4
or
an
urban
43
renewal
area
for
which
taxes
were
being
divided
under
44
section
403.19
if
the
property
for
the
valuation
being
45
released
remains
subject
to
the
division
of
revenue
46
under
section
260E.4
or
remains
part
of
the
urban
47
renewal
area
that
is
subject
to
a
division
of
revenue
48
under
section
403.19.
49
(2)
Additions
or
improvements
to
existing
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structures.
1
(3)
Remodeling
of
existing
structures
for
which
a
2
building
permit
is
required.
3
(4)
Net
boundary
adjustment.
4
(5)
A
municipality
no
longer
dividing
tax
revenues
5
in
an
urban
renewal
area
as
provided
in
section
403.19
6
or
a
community
college
no
longer
dividing
revenues
as
7
provided
in
section
260E.4.
8
(6)
That
portion
of
taxable
property
located
in
an
9
urban
revitalization
area
on
which
an
exemption
was
10
allowed
and
such
exemption
has
expired.
11
3.
a.
For
the
fiscal
year
beginning
July
1,
2012,
12
and
subsequent
fiscal
years,
the
maximum
amount
of
13
property
tax
dollars
which
may
be
certified
for
levy
by
14
a
city
for
the
general
fund
and
for
the
city’s
trust
15
and
agency
funds
under
section
384.6,
subsection
1,
16
shall
be
the
maximum
property
tax
dollars
calculated
17
under
paragraph
“b”
.
18
b.
The
maximum
property
tax
dollars
that
may
be
19
levied
for
deposit
in
the
general
fund
and
the
city’s
20
trust
and
agency
funds
under
section
384.6,
subsection
21
1,
is
an
amount,
following
the
subtraction
of
22
replacement
claim
amounts
to
be
received
under
section
23
441.21A
during
the
budget
year
that
are
the
result
of
24
the
levy
rates
for
the
general
fund
and
for
the
trust
25
and
agency
funds
under
section
384.6,
subsection
1,
26
equal
to
the
sum
of
the
following:
27
(1)
The
annual
growth
factor
times
the
sum
of
the
28
current
fiscal
year’s
maximum
property
tax
dollars
29
for
the
general
fund,
the
trust
and
agency
funds
30
under
section
384.6,
subsection
1,
and
the
amount
of
31
all
replacement
claim
amounts
received
under
section
32
441.21A
during
the
current
fiscal
year
that
are
the
33
result
of
the
levy
rates
for
the
general
fund
and
34
for
the
trust
and
agency
funds
under
section
384.6,
35
subsection
1.
36
(2)
The
amount
of
net
new
valuation
taxes
in
the
37
city.
38
4.
For
purposes
of
calculating
maximum
property
tax
39
dollars
for
the
city
general
fund
for
the
fiscal
year
40
beginning
July
1,
2012,
only,
the
term
“current
fiscal
41
year’s
maximum
property
tax
dollars”
shall
mean
the
sum
42
of
the
total
amount
of
property
tax
dollars
certified
43
by
the
city
for
the
city’s
general
fund
and
the
city’s
44
trust
and
agency
funds
under
section
384.6,
subsection
45
1,
for
the
fiscal
year
beginning
July
1,
2011.
46
5.
Property
taxes
certified
for
deposit
in
the
debt
47
service
fund
in
section
384.4,
capital
improvements
48
reserve
fund
in
section
384.7,
the
emergency
fund
in
49
section
384.8,
any
capital
projects
fund
established
by
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the
city
for
deposit
of
bond,
loan,
or
note
proceeds,
1
any
temporary
increase
approved
pursuant
to
section
2
384.12A,
property
taxes
collected
from
a
voted
levy
3
in
section
384.12,
and
property
taxes
levied
under
4
section
384.12,
subsection
18,
are
not
counted
against
5
the
maximum
amount
of
property
tax
dollars
that
may
be
6
certified
for
a
fiscal
year
under
subsection
3.
7
6.
Notwithstanding
the
maximum
amount
of
taxes
8
a
city
may
certify
for
levy,
the
tax
levied
by
a
9
city
on
tracts
of
land
and
improvements
on
the
10
tracts
of
land
used
and
assessed
for
agricultural
or
11
horticultural
purposes
shall
not
exceed
three
dollars
12
and
three-eighths
cents
per
thousand
dollars
of
13
assessed
value
in
any
year.
Improvements
located
on
14
such
tracts
of
land
and
not
used
for
agricultural
or
15
horticultural
purposes
and
all
residential
dwellings
16
are
subject
to
the
same
rate
of
tax
levied
by
the
city
17
on
all
other
taxable
property
within
the
city.
18
7.
The
department
of
management,
in
consultation
19
with
the
city
finance
committee,
shall
adopt
rules
20
to
administer
this
section.
The
department
shall
21
prescribe
forms
to
be
used
by
cities
when
making
22
calculations
required
by
this
section.
23
Sec.
___.
NEW
SECTION
.
384.1B
Ending
fund
balance.
24
1.
a.
Budgeted
ending
fund
balances
for
a
budget
25
year
in
excess
of
twenty-five
percent
of
budgeted
26
expenditures
from
the
general
fund
for
that
budget
27
year
shall
be
explicitly
reserved
or
designated
for
a
28
specific
purpose.
29
b.
A
city
is
encouraged,
but
not
required,
to
30
reduce
budgeted,
unreserved,
or
undesignated
ending
31
fund
balances
for
the
budget
year
to
an
amount
equal
32
to
approximately
twenty-five
percent
of
budgeted
33
expenditures
and
transfers
from
the
general
fund
for
34
that
budget
year
unless
a
decision
is
certified
by
the
35
state
appeal
board
ordering
a
reduction
in
the
ending
36
fund
balance
of
the
fund.
37
c.
In
a
protest
to
the
city
budget
under
section
38
384.19,
the
city
shall
have
the
burden
of
proving
39
that
the
budgeted
balances
in
excess
of
twenty-five
40
percent
are
reasonably
likely
to
be
appropriated
for
41
the
explicitly
reserved
or
designated
specific
purpose.
42
The
excess
budgeted
balance
for
the
specific
purpose
43
shall
be
considered
an
increase
in
an
item
in
the
44
budget
for
purposes
of
section
24.28.
45
2.
a.
For
a
city
that
has,
as
of
June
30,
46
2011,
reduced
its
ending
fund
balance
to
less
than
47
twenty-five
percent
of
actual
expenditures,
additional
48
property
taxes
may
be
computed
and
levied
as
provided
49
in
this
subsection.
The
additional
property
tax
levy
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amount
is
an
amount
not
to
exceed
the
difference
1
between
twenty-five
percent
of
actual
expenditures
for
2
city
government
purposes
for
the
fiscal
year
beginning
3
July
1,
2010,
minus
the
ending
fund
balance
for
that
4
year.
5
b.
All
or
a
portion
of
additional
property
tax
6
dollars
may
be
levied
for
the
purpose
of
increasing
7
cash
reserves
for
city
government
purposes
in
the
8
budget
year.
The
additional
property
tax
dollars
9
authorized
under
this
subsection
but
not
levied
may
be
10
carried
forward
as
unused
ending
fund
balance
taxing
11
authority
until
and
for
the
fiscal
year
beginning
12
July
1,
2017.
The
amount
carried
forward
shall
not
13
exceed
twenty-five
percent
of
the
maximum
amount
of
14
property
tax
dollars
available
in
the
current
fiscal
15
year.
Additionally,
property
taxes
that
are
levied
16
as
unused
ending
fund
balance
taxing
authority
under
17
this
subsection
may
be
the
subject
of
a
protest
under
18
section
384.19,
and
the
amount
will
be
considered
an
19
increase
in
an
item
in
the
budget
for
purposes
of
20
section
24.28.
The
amount
of
additional
property
tax
21
dollars
levied
under
this
subsection
shall
not
be
22
included
in
the
computation
of
the
maximum
amount
of
23
property
tax
dollars
which
may
be
certified
and
levied
24
under
section
384.1.
25
Sec.
___.
Section
384.6,
subsection
1,
unnumbered
26
paragraph
1,
Code
2011,
is
amended
to
read
as
follows:
27
Accounting
for
pension
and
related
employee
benefit
28
funds
as
provided
by
the
city
finance
committee.
A
29
city
may
,
subject
to
the
limitations
of
section
384.1,
30
certify
taxes
to
be
levied
for
a
trust
and
agency
fund
31
in
the
amount
necessary
to
meet
its
obligations.
32
Sec.
___.
Section
384.12,
subsection
20,
Code
2011,
33
is
amended
by
striking
the
subsection.
34
Sec.
___.
NEW
SECTION
.
384.12A
Authority
to
levy
35
beyond
maximum
property
tax
dollars.
36
1.
The
city
council
may
certify
additions
to
the
37
maximum
amount
of
property
tax
dollars
to
be
levied
38
for
a
period
of
time
not
to
exceed
two
years
if
the
39
proposition
has
been
submitted
at
a
special
election
40
and
received
a
favorable
majority
of
the
votes
cast
on
41
the
proposition.
42
2.
The
special
election
is
subject
to
the
43
following:
44
a.
The
city
council
must
give
at
least
thirty-two
45
days’
notice
to
the
county
commissioner
of
elections
46
that
the
special
election
is
to
be
held.
In
no
47
case,
however,
shall
a
notice
be
given
to
the
county
48
commissioner
of
elections
after
December
31
for
an
49
election
on
a
proposition
to
exceed
the
statutory
50
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30
limits
during
the
fiscal
year
beginning
in
the
next
1
calendar
year.
2
b.
The
special
election
shall
be
conducted
by
the
3
county
commissioner
of
elections
in
accordance
with
4
law.
5
c.
The
proposition
to
be
submitted
shall
be
6
substantially
in
the
following
form:
7
Vote
“yes”
or
“no”
on
the
following:
Shall
the
city
8
of
_______
levy
for
an
additional
$_______
each
year
9
for
___
years
beginning
next
July
1,
____,
in
excess
of
10
the
statutory
limits
otherwise
applicable
for
the
city
11
general
fund
and
the
city
trust
and
agency
funds?
12
d.
The
canvass
shall
be
held
beginning
at
1:00
p.m.
13
on
the
second
day
which
is
not
a
holiday
following
the
14
special
election.
15
e.
Notice
of
the
special
election
shall
be
16
published
at
least
once
in
a
newspaper
as
specified
17
in
section
362.3
prior
to
the
date
of
the
special
18
election.
The
notice
shall
appear
as
early
as
19
practicable
after
the
city
council
has
voted
to
submit
20
a
proposition
to
the
voters
to
levy
additional
property
21
tax
dollars.
22
3.
The
amount
of
additional
property
tax
dollars
23
certified
under
this
section
shall
not
be
included
in
24
the
computation
of
the
maximum
amount
of
property
tax
25
dollars
which
may
be
certified
and
levied
under
section
26
384.1.
27
Sec.
___.
Section
384.16,
subsection
1,
paragraph
28
b,
Code
2011,
is
amended
to
read
as
follows:
29
b.
A
budget
must
show
comparisons
between
the
30
estimated
expenditures
in
each
program
in
the
following
31
year,
the
latest
estimated
expenditures
in
each
program
32
in
the
current
year,
and
the
actual
expenditures
in
33
each
program
from
the
annual
report
as
provided
in
34
section
384.22
,
or
as
corrected
by
a
subsequent
audit
35
report.
Wherever
practicable,
as
provided
in
rules
36
of
the
committee,
a
budget
must
show
comparisons
37
between
the
levels
of
service
provided
by
each
program
38
as
estimated
for
the
following
year,
and
actual
39
levels
of
service
provided
by
each
program
during
40
the
two
preceding
years.
For
each
city
that
has
41
established
an
urban
renewal
area,
the
budget
shall
42
include
estimated
and
actual
tax
increment
financing
43
revenues
and
all
estimated
and
actual
expenditures
of
44
the
revenues,
proceeds
from
debt
and
all
estimated
45
and
actual
expenditures
of
the
debt
proceeds,
and
46
identification
of
any
entity
receiving
a
direct
payment
47
of
taxes
funded
by
tax
increment
financing
revenues
48
and
shall
include
the
total
amount
of
loans,
advances,
49
indebtedness,
or
bonds
outstanding
at
the
close
of
50
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30
the
most
recently
ended
fiscal
year,
which
qualify
1
for
payment
from
the
special
fund
created
in
section
2
403.19
,
including
interest
negotiated
on
such
loans,
3
advances,
indebtedness,
or
bonds.
The
amount
of
loans,
4
advances,
indebtedness,
or
bonds
shall
be
listed
in
the
5
aggregate
for
each
city
reporting.
The
city
finance
6
committee,
in
consultation
with
the
department
of
7
management
and
the
legislative
services
agency,
shall
8
determine
reporting
criteria
and
shall
prepare
a
form
9
for
reports
filed
with
the
department
pursuant
to
this
10
section
.
The
department
shall
make
the
information
11
available
by
electronic
means.
12
Sec.
___.
Section
384.19,
Code
2011,
is
amended
by
13
adding
the
following
new
unnumbered
paragraph:
14
NEW
UNNUMBERED
PARAGRAPH
.
For
purposes
of
a
tax
15
protest
filed
under
this
section,
“item”
means
a
16
budgeted
expenditure,
appropriation,
or
cash
reserve
17
from
a
fund
for
a
service
area,
program,
program
18
element,
or
purpose.
19
Sec.
___.
Section
386.8,
Code
2011,
is
amended
to
20
read
as
follows:
21
386.8
Operation
tax.
22
A
city
may
establish
a
self-supported
improvement
23
district
operation
fund,
and
may
certify
taxes
not
24
to
exceed
the
rate
limitation
as
established
in
the
25
ordinance
creating
the
district,
or
any
amendment
26
thereto,
each
year
to
be
levied
for
the
fund
against
27
all
of
the
property
in
the
district,
for
the
purpose
28
of
paying
the
administrative
expenses
of
the
district,
29
which
may
include
but
are
not
limited
to
administrative
30
personnel
salaries,
a
separate
administrative
office,
31
planning
costs
including
consultation
fees,
engineering
32
fees,
architectural
fees,
and
legal
fees
and
all
other
33
expenses
reasonably
associated
with
the
administration
34
of
the
district
and
the
fulfilling
of
the
purposes
of
35
the
district.
The
taxes
levied
for
this
fund
may
also
36
be
used
for
the
purpose
of
paying
maintenance
expenses
37
of
improvements
or
self-liquidating
improvements
for
a
38
specified
length
of
time
with
one
or
more
options
to
39
renew
if
such
is
clearly
stated
in
the
petition
which
40
requests
the
council
to
authorize
construction
of
the
41
improvement
or
self-liquidating
improvement,
whether
42
or
not
such
petition
is
combined
with
the
petition
43
requesting
creation
of
a
district.
Parcels
of
property
44
which
are
assessed
as
residential
property
for
property
45
tax
purposes
are
exempt
from
the
tax
levied
under
this
46
section
except
residential
properties
within
a
duly
47
designated
historic
district.
A
tax
levied
under
48
this
section
is
not
subject
to
the
levy
limitation
in
49
section
384.1
.
50
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84
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30
Sec.
___.
Section
386.9,
Code
2011,
is
amended
to
1
read
as
follows:
2
386.9
Capital
improvement
tax.
3
A
city
may
establish
a
capital
improvement
fund
4
for
a
district
and
may
certify
taxes,
not
to
exceed
5
the
rate
established
by
the
ordinance
creating
the
6
district,
or
any
subsequent
amendment
thereto,
7
each
year
to
be
levied
for
the
fund
against
all
of
8
the
property
in
the
district,
for
the
purpose
of
9
accumulating
moneys
for
the
financing
or
payment
10
of
a
part
or
all
of
the
costs
of
any
improvement
or
11
self-liquidating
improvement.
However,
parcels
of
12
property
which
are
assessed
as
residential
property
13
for
property
tax
purposes
are
exempt
from
the
tax
14
levied
under
this
section
except
residential
properties
15
within
a
duly
designated
historic
district.
A
tax
16
levied
under
this
section
is
not
subject
to
the
levy
17
limitations
in
section
384.1
or
384.7
.
18
Sec.
___.
REPEAL.
Sections
331.425
and
331.426,
19
Code
2011,
are
repealed.
20
Sec.
___.
APPLICABILITY.
This
division
of
this
21
Act
applies
to
fiscal
years
beginning
on
or
after
July
22
1,
2012.
23
DIVISION
___
24
INCOME
TAX
25
EARNED
INCOME
TAX
CREDIT
26
Sec.
___.
Section
422.12B,
subsection
1,
Code
2011,
27
is
amended
to
read
as
follows:
28
1.
The
taxes
imposed
under
this
division
less
the
29
credits
allowed
under
section
422.12
shall
be
reduced
30
by
an
earned
income
credit
equal
to
seven
ten
percent
31
of
the
federal
earned
income
credit
provided
in
section
32
32
of
the
Internal
Revenue
Code.
Any
credit
in
excess
33
of
the
tax
liability
is
refundable.
34
Sec.
___.
RETROACTIVE
APPLICABILITY.
This
division
35
of
this
Act
applies
retroactively
to
January
1,
2011,
36
for
tax
years
beginning
on
or
after
that
date.
37
DIVISION
___
38
INCOME
TAX
39
SCHOOL
TUITION
ORGANIZATION
TAX
CREDITS
40
Sec.
___.
Section
422.11S,
subsection
7,
paragraph
41
a,
subparagraph
(2),
Code
2011,
is
amended
to
read
as
42
follows:
43
(2)
“Total
approved
tax
credits”
means
for
the
44
tax
year
beginning
in
the
2006
calendar
year,
two
45
million
five
hundred
thousand
dollars,
for
the
tax
46
year
beginning
in
the
2007
calendar
year,
five
million
47
dollars,
and
for
tax
years
beginning
on
or
after
48
January
1,
2008,
seven
million
five
hundred
thousand
49
dollars.
the
following:
50
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HF697.3313
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84
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(a)
For
tax
years
beginning
on
or
after
January
1,
1
2008,
and
before
January
1,
2012,
seven
million
five
2
hundred
thousand
dollars.
3
(b)
For
the
tax
year
beginning
on
or
after
January
4
1,
2012,
and
before
January
1,
2013,
eight
million
5
seven
hundred
fifty
thousand
dollars.
6
(c)
For
tax
years
beginning
on
or
after
January
1,
7
2013,
ten
million
dollars.
8
DIVISION
___
9
INCOME
TAX
10
TEACHER
EXPENSES
11
Sec.
___.
Section
422.7,
Code
2011,
is
amended
by
12
adding
the
following
new
subsection:
13
NEW
SUBSECTION
.
54.
A
taxpayer
is
allowed
to
14
take
the
deduction
for
certain
expenses
of
elementary
15
and
secondary
school
teachers
allowed
under
section
16
62(a)(2)(D)
of
the
Internal
Revenue
Code,
as
amended
17
by
the
federal
Emergency
Economic
Stabilization
Act
of
18
2008,
Pub.
L.
No.
110-343,
in
computing
net
income
for
19
state
tax
purposes.
20
Sec.
___.
REFUNDS.
Notwithstanding
any
provision
21
to
the
contrary
in
section
422.25,
subsection
3,
22
a
taxpayer
who
files
an
amended
return
in
the
time
23
permitted
by
statute
to
claim
a
refund
related
to
the
24
allowance
of
the
deduction
enacted
in
this
division
of
25
this
Act
is
only
entitled
to
a
refund
of
the
amount
26
paid
that
is
in
excess
of
tax
liability.
The
taxpayer
27
shall
not
be
entitled
to
interest
on
such
excess.
28
Sec.
___.
EFFECTIVE
DATE
AND
RETROACTIVE
29
APPLICABILITY.
This
division
of
this
Act,
being
deemed
30
of
immediate
importance,
takes
effect
upon
enactment
31
and
applies
retroactively
to
January
1,
2008,
for
32
tax
years
beginning
on
or
after
that
date
and
before
33
January
1,
2009.
34
DIVISION
___
35
INCOME
TAX
36
QUALIFIED
HIGHER
EDUCATION
EXPENSES
37
Sec.
___.
Section
422.7,
Code
2011,
is
amended
by
38
adding
the
following
new
subsection:
39
NEW
SUBSECTION
.
54.
A
taxpayer
is
allowed
to
40
take
the
deduction
for
qualified
tuition
and
related
41
expenses
allowed
under
section
222
of
the
Internal
42
Revenue
Code,
as
amended
by
the
federal
Emergency
43
Economic
Stabilization
Act
of
2008,
Pub.
L.
No.
44
110-343,
in
computing
net
income
for
state
tax
45
purposes.
46
Sec.
___.
REFUNDS.
Notwithstanding
any
provision
47
to
the
contrary
in
section
422.25,
subsection
3,
48
a
taxpayer
who
files
an
amended
return
in
the
time
49
permitted
by
statute
to
claim
a
refund
related
to
the
50
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HF697.3313
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84
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30
allowance
of
the
deduction
enacted
in
this
division
of
1
this
Act
is
only
entitled
to
a
refund
of
the
amount
2
paid
that
is
in
excess
of
tax
liability.
The
taxpayer
3
shall
not
be
entitled
to
interest
on
such
excess.
4
Sec.
___.
EFFECTIVE
DATE
AND
RETROACTIVE
5
APPLICABILITY.
This
division
of
this
Act,
being
deemed
6
of
immediate
importance,
takes
effect
upon
enactment
7
and
applies
retroactively
to
January
1,
2008,
for
8
tax
years
beginning
on
or
after
that
date
and
before
9
January
1,
2009.
10
DIVISION
___
11
INCOME
TAX
12
STATE
SALES/USE
TAX
DEDUCTION
13
Sec.
___.
Section
422.9,
subsection
2,
paragraph
i,
14
Code
2011,
is
amended
to
read
as
follows:
15
i.
The
deduction
for
state
sales
and
use
taxes
16
is
allowable
only
if
the
taxpayer
elected
to
deduct
17
the
state
sales
and
use
taxes
in
lieu
of
state
income
18
taxes
under
section
164
of
the
Internal
Revenue
Code.
19
A
deduction
for
state
sales
and
use
taxes
is
not
20
allowed
if
the
taxpayer
has
taken
the
deduction
for
21
state
income
taxes
or
claimed
the
standard
deduction
22
under
section
63
of
the
Internal
Revenue
Code.
This
23
paragraph
applies
to
taxable
years
beginning
after
24
December
31,
2003,
and
before
January
1,
2006
2009,
and
25
to
taxable
years
beginning
after
December
31,
2009,
and
26
before
January
1,
2012
.
27
Sec.
___.
REFUNDS.
Notwithstanding
any
provision
28
to
the
contrary
in
section
422.25,
subsection
3,
29
a
taxpayer
who
files
an
amended
return
in
the
time
30
permitted
by
statute
to
claim
a
refund
related
to
the
31
allowance
of
the
deduction
enacted
in
this
division
of
32
this
Act
is
only
entitled
to
a
refund
of
the
amount
33
paid
that
is
in
excess
of
tax
liability.
The
taxpayer
34
shall
not
be
entitled
to
interest
on
such
excess.
35
Sec.
___.
EFFECTIVE
DATE
AND
RETROACTIVE
36
APPLICABILITY.
This
division
of
this
Act,
being
deemed
37
of
immediate
importance,
takes
effect
upon
enactment
38
and
applies
retroactively
to
tax
years
beginning
on
or
39
after
January
1,
2006,
and
before
January
1,
2009,
and
40
to
tax
years
beginning
on
or
after
January
1,
2010,
and
41
before
January
1,
2012.
42
DIVISION
___
43
INCOME
TAX
44
SPECIAL
FILING
PROVISIONS
45
Sec.
___.
SPECIAL
FILING
PROVISIONS.
46
1.
Adjustments
by
individuals
to
federal
adjusted
47
gross
income
and
by
corporations
to
federal
taxable
48
income
for
tax
returns
filed
prior
to
the
enactment
of
49
2011
Iowa
Acts,
Senate
File
512,
may
be
required
as
a
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result
of
the
provisions
of
divisions
___
through
___
1
of
this
Act.
These
adjustments
are
as
follows:
2
a.
The
increased
expensing
allowance
authorized
in
3
section
179(b)
of
the
Internal
Revenue
Code
for
tax
4
years
beginning
on
or
after
January
1,
2010,
but
before
5
January
1,
2011.
6
b.
The
deduction
for
qualified
tuition
and
related
7
expenses
allowed
under
section
222
of
the
Internal
8
Revenue
Code.
9
c.
The
deduction
for
certain
expenses
of
elementary
10
and
secondary
school
teachers
allowed
under
section
11
62(a)(2)(D)
of
the
Internal
Revenue
Code.
12
2.
In
lieu
of
filing
an
amended
tax
return,
13
taxpayers
may
make
the
adjustments,
pursuant
to
rules
14
adopted
by
the
director
of
revenue,
on
the
next
return
15
filed
subsequent
to
the
enactment
of
2011
Iowa
Acts,
16
Senate
File
512.
If
the
taxpayer
elects
not
to
file
17
an
amended
return,
these
provisions
are
suspended
with
18
regard
to
the
following
adjustments
otherwise
available
19
as
a
result
of
this
Act.
20
a.
The
limitation
based
on
income
provisions
21
and
regulations
of
section
179(b)(3)
of
the
Internal
22
Revenue
Code
with
regard
to
the
section
179(b)
23
adjustment.
24
b.
The
applicable
dollar
limit
provisions
of
25
section
222(b)(2)(B)
of
the
Internal
Revenue
Code
with
26
regard
to
the
section
222
adjustment.
27
DIVISION
___
28
INCOME
TAX
29
WITHHOLDING
AGREEMENTS
30
Sec.
___.
Section
403.19A,
subsection
1,
paragraphs
31
c
and
f,
Code
2011,
are
amended
to
read
as
follows:
32
c.
“Employer”
means
a
business
creating
or
33
retaining
targeted
jobs
in
an
urban
renewal
area
of
a
34
pilot
project
city
pursuant
to
a
withholding
agreement.
35
f.
“Targeted
job”
means
a
job
in
a
business
which
36
is
or
will
be
located
in
an
urban
renewal
area
of
a
37
pilot
project
city
that
pays
a
wage
at
least
equal
to
38
the
countywide
average
wage.
“Targeted
job”
includes
39
new
or
retained
jobs
from
Iowa
business
expansions
40
or
retentions
within
the
city
limits
of
the
pilot
41
project
city
and
those
jobs
resulting
from
established
42
out-of-state
businesses,
as
defined
by
the
department
43
of
economic
development,
moving
to
or
expanding
in
44
Iowa.
45
Sec.
___.
Section
403.19A,
subsection
3,
paragraph
46
c,
subparagraph
(1),
Code
2011,
is
amended
to
read
as
47
follows:
48
(1)
The
pilot
project
city
shall
enter
into
a
49
withholding
agreement
with
each
employer
concerning
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the
targeted
jobs
withholding
credit.
The
withholding
1
agreement
shall
provide
for
the
total
amount
of
2
withholding
tax
credits
awarded.
An
agreement
shall
3
not
provide
for
an
amount
of
withholding
credits
that
4
exceeds
the
amount
of
the
qualifying
investment
made
in
5
the
project.
An
agreement
shall
not
be
entered
into
by
6
a
pilot
project
city
with
a
business
currently
located
7
in
this
state
unless
the
business
either
creates
or
8
retains
ten
new
jobs
or
makes
a
qualifying
investment
9
of
at
least
five
hundred
thousand
dollars
within
10
the
urban
renewal
area.
The
withholding
agreement
11
may
have
a
term
of
up
to
ten
years.
An
employer
12
shall
not
be
obligated
to
enter
into
a
withholding
13
agreement.
An
agreement
shall
not
be
entered
into
with
14
an
employer
not
already
located
in
a
pilot
project
15
city
when
another
Iowa
community
is
competing
for
the
16
same
project
and
both
the
pilot
project
city
and
the
17
other
Iowa
community
are
seeking
assistance
from
the
18
department.
19
Sec.
___.
Section
403.19A,
subsection
3,
paragraph
20
f,
Code
2011,
is
amended
to
read
as
follows:
21
f.
If
the
employer
ceases
to
meet
the
requirements
22
of
the
withholding
agreement,
the
agreement
shall
be
23
terminated
and
any
withholding
tax
credits
for
the
24
benefit
of
the
employer
shall
cease.
However,
in
25
regard
to
the
number
of
new
jobs
that
are
to
be
created
26
or
retained
,
if
the
employer
has
met
the
number
of
27
new
jobs
to
be
created
or
retained
pursuant
to
the
28
withholding
agreement
and
subsequently
the
number
of
29
new
jobs
falls
below
the
required
level,
the
employer
30
shall
not
be
considered
as
not
meeting
the
new
job
31
requirement
until
eighteen
months
after
the
date
of
the
32
decrease
in
the
number
of
new
jobs
created
or
retained
.
33
Sec.
___.
EFFECTIVE
UPON
ENACTMENT
AND
RETROACTIVE
34
APPLICABILITY.
This
division
of
this
Act,
being
35
deemed
of
immediate
importance,
takes
effect
upon
36
enactment
and
applies
retroactively
to
July
1,
2006,
37
for
agreements
entered
into
on
or
after
that
date.
38
DIVISION
___
39
INCOME
TAX
40
DISASTER-RELATED
PERSONAL
CASUALTY
LOSS
DEDUCTIONS
41
Sec.
___.
Section
422.9,
Code
2011,
is
amended
by
42
adding
the
following
new
subsection:
43
NEW
SUBSECTION
.
9.
A
taxpayer
is
allowed
to
take
44
the
deduction
for
disaster-related
casualty
losses
45
under
section
165(h)
of
the
Internal
Revenue
Code,
as
46
modified
by
the
Heartland
Disaster
Relief
Act
of
2008,
47
Pub.
L.
No.
110-343,
in
computing
net
income
for
state
48
tax
purposes.
49
Sec.
___.
Notwithstanding
any
provision
to
the
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30
contrary
in
section
422.25,
subsection
3,
a
taxpayer
1
who
files
an
amended
return
in
the
time
permitted
by
2
statute
to
claim
a
refund
related
to
the
allowance
of
3
the
deduction
enacted
in
this
division
of
this
Act
is
4
only
entitled
to
a
refund
of
the
amount
paid
that
is
5
in
excess
of
tax
liability.
The
taxpayer
shall
not
be
6
entitled
to
interest
on
such
excess.
7
Sec.
___.
EFFECTIVE
DATE
AND
RETROACTIVE
8
APPLICABILITY.
This
division
of
this
Act,
being
deemed
9
of
immediate
importance,
takes
effect
upon
enactment
10
and
applies
retroactively
to
January
1,
2008,
for
11
tax
years
beginning
on
or
after
that
date
and
before
12
January
1,
2009.
>
13
2.
By
renumbering,
redesignating,
and
correcting
14
internal
references
as
necessary.
15
______________________________
COMMITTEE
ON
WAYS
AND
MEANS
SANDS
of
Louisa,
Chairperson
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(1)
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#2.