Senate File 522 S-3260 Amend Senate File 522 as follows: 1 1. Page 1, before line 1 by inserting: 2 < Section 1. NEW SECTION . 331.422A Property tax 3 dollars —— maximums. 4 1. a. The maximum amount in property tax dollars 5 which may be certified by a county for taxes shall not 6 exceed the amount of property tax dollars determined 7 under subsection 3. 8 b. This section shall not be construed as removing 9 or otherwise affecting the property tax limitations 10 otherwise provided by law for any tax levy of the 11 county, except that, upon an appeal from the county, 12 the state appeal board may approve a tax levy 13 consistent with the provisions of section 24.48 or 14 331.426. 15 2. For purposes of this section: 16 a. “Boundary adjustment” means annexation, 17 severance, incorporation, or discontinuance as those 18 terms are defined in section 368.1. 19 b. “Budget year” is the fiscal year beginning 20 during the calendar year in which a budget is 21 certified. 22 c. “Current fiscal year” is the fiscal year 23 ending during the calendar year in which a budget is 24 certified. 25 d. “Inflation rate” means the average of the 26 preceding twelve-month percentage change, which shall 27 be computed on a monthly basis, in the consumer price 28 index for all urban consumers, not seasonally adjusted, 29 published by the United States department of labor, 30 bureau of labor statistics, calculated for the calendar 31 year ending six months after the beginning of the 32 current fiscal year. 33 e. “Net new valuation taxes” means the amount 34 of property tax dollars equal to the sum of all the 35 current fiscal year’s levy rates certified by the 36 county multiplied by the increase from the current 37 fiscal year to the budget year in taxable valuation due 38 to the following: 39 (1) New construction. 40 (2) Additions or improvements to existing 41 structures. 42 (3) Remodeling of existing structures for which a 43 building permit is required. 44 (4) Net boundary adjustment. 45 (5) A municipality no longer dividing tax revenues 46 in an urban renewal area as provided in section 47 403.19, to the extent that the incremental valuation 48 released is due to new construction or revaluation of 49 property newly constructed, additions or improvements 50 -1- SF522.2607 (3) 84 md/sc 1/ 10 #1.

to existing property, net boundary adjustment, or 1 expiration of tax abatements or exemptions, all 2 occurring after the division of revenue begins. 3 (6) That portion of taxable property located in an 4 urban revitalization area on which an exemption was 5 allowed and such exemption has expired. 6 3. For the budget year beginning July 1, 2012, and 7 subsequent budget years, the maximum amount of property 8 tax dollars which may be certified for levy by a county 9 shall be an amount equal to the sum of the following: 10 a. The current fiscal year’s total property tax 11 dollars certified by the county. 12 b. The amount of net new valuation taxes in the 13 county. 14 c. Any additional amount of property tax dollars 15 certified by the board under subsection 5. 16 4. Property taxes certified for deposit in the debt 17 service fund in section 331.430 or any other property 18 taxes resulting from a property tax levy approved at 19 election are not included in the maximum amount of 20 property tax dollars that may be certified for a budget 21 year under subsection 3. 22 5. The board may certify and levy an additional 23 amount of property tax dollars to finance existing 24 programs which would provide substantial benefit to the 25 county in an amount not to exceed the current fiscal 26 year’s total property tax dollars multiplied by the 27 inflation rate. 28 6. The department of management, in consultation 29 with the county finance committee, shall adopt rules 30 to administer this section. 31 Sec. ___. NEW SECTION . 331.422B Authority to levy 32 beyond maximum property tax dollars. 33 1. The board may certify additions to the maximum 34 amount of property tax dollars under section 331.422A 35 to be levied for a period of time not to exceed three 36 years unless, at any time before the date fixed for 37 certifying the budget, a petition signed by eligible 38 electors residing within the county in a number equal 39 to at least two percent of the registered voters of the 40 county, ask that the question of certifying additions 41 to the maximum amount of property tax dollars be 42 submitted to the registered voters. Upon receipt of 43 such a petition, the board of supervisors shall direct 44 the county commissioner of elections to call a special 45 election upon the question of certifying additions to 46 the maximum amount of property tax dollars. 47 2. The proposition of certifying additions to 48 the maximum amount of property tax dollars under this 49 subsection is approved if the vote in favor of the 50 -2- SF522.2607 (3) 84 md/sc 2/ 10

proposition is a simple majority of the total votes 1 cast on the proposition. 2 3. The special election is subject to the 3 following: 4 a. The board must give at least thirty-two days’ 5 notice to the county commissioner of elections that the 6 special election is to be held. 7 b. The special election shall be held on the 8 first Tuesday in March and be conducted by the county 9 commissioner of elections in accordance with law. 10 c. The proposition to be submitted shall be 11 substantially in the following form: 12 Vote “yes” or “no” on the following: Shall the 13 county of _______ levy for an additional $_______ each 14 year for ___ years beginning July 1, _____, in excess 15 of the statutory maximum amount of property tax dollar 16 limits otherwise applicable under Iowa Code section 17 331.422A? 18 d. The canvass shall be held beginning at 1:00 p.m. 19 on the second day which is not a holiday following the 20 special election. 21 e. Notice of the special election shall be 22 published at least once in a newspaper as specified 23 in section 331.305 prior to the date of the special 24 election. The notice shall appear as early as 25 practicable after the board has directed the county 26 commissioner of elections to submit the proposition to 27 the voters. 28 4. The amount of additional property tax dollars 29 certified under this section shall not be included in 30 the computation of the maximum amount of property tax 31 dollars which may be certified and levied under section 32 331.422A. > 33 2. Page 1, after line 8 by inserting: 34 < Sec. ___. NEW SECTION . 384.1A Property tax 35 dollars —— maximums. 36 1. a. The maximum amount in property tax dollars 37 which may be certified by a city for taxes shall not 38 exceed the amount of property tax dollars determined 39 under subsection 3. 40 b. This section shall not be construed as removing 41 or otherwise affecting the property tax limitations 42 otherwise provided by law for any tax levy of the city, 43 except that, upon an appeal from the city, the state 44 appeal board may approve a tax levy consistent with the 45 provisions of section 24.48. 46 2. For purposes of this section: 47 a. “Boundary adjustment” means annexation, 48 severance, incorporation, or discontinuance as those 49 terms are defined in section 368.1. 50 -3- SF522.2607 (3) 84 md/sc 3/ 10 #2.

b. “Budget year” is the fiscal year beginning 1 during the calendar year in which a budget is 2 certified. 3 c. “Current fiscal year” is the fiscal year 4 ending during the calendar year in which a budget is 5 certified. 6 d. “Inflation rate” means the average of the 7 preceding twelve-month percentage change, which shall 8 be computed on a monthly basis, in the consumer price 9 index for all urban consumers, not seasonally adjusted, 10 published by the United States department of labor, 11 bureau of labor statistics, calculated for the calendar 12 year ending six months after the beginning of the 13 current fiscal year. 14 e. “Net new valuation taxes” means the amount 15 of property tax dollars equal to the sum of all the 16 current fiscal year’s levy rates certified by the city 17 multiplied by the increase from the current fiscal year 18 to the budget year in taxable valuation due to the 19 following: 20 (1) New construction. 21 (2) Additions or improvements to existing 22 structures. 23 (3) Remodeling of existing structures for which a 24 building permit is required. 25 (4) Net boundary adjustment. 26 (5) A municipality no longer dividing tax revenues 27 in an urban renewal area as provided in section 28 403.19, to the extent that the incremental valuation 29 released is due to new construction or revaluation of 30 property newly constructed, additions or improvements 31 to existing property, net boundary adjustment, or 32 expiration of tax abatements or exemptions, all 33 occurring after the division of revenue begins. 34 (6) That portion of taxable property located in an 35 urban revitalization area on which an exemption was 36 allowed and such exemption has expired. 37 3. For the budget year beginning July 1, 2012, and 38 subsequent budget years, the maximum amount of property 39 tax dollars which may be certified for levy by a city 40 shall be an amount equal to the sum of the following: 41 a. The current fiscal year’s total property tax 42 dollars certified by the city. 43 b. The amount of net new valuation taxes in the 44 city. 45 c. Any additional amount of property tax dollars 46 certified by the city under subsection 5. 47 4. Property taxes certified for deposit in the debt 48 service fund in section 384.4 or any other property 49 taxes resulting from a property tax levy approved at 50 -4- SF522.2607 (3) 84 md/sc 4/ 10

election are not included in the maximum amount of 1 property tax dollars that may be certified for a budget 2 year under subsection 3. 3 5. The city may certify an additional amount of 4 property tax dollars to be levied to finance existing 5 programs which would provide substantial benefit to 6 the city in an amount not to exceed the current fiscal 7 year’s property tax dollars multiplied by the inflation 8 rate. 9 6. The department of management, in consultation 10 with the city finance committee, shall adopt rules to 11 administer this section. 12 Sec. ___. NEW SECTION . 384.1B Authority to levy 13 beyond maximum property tax dollars. 14 1. The city council may certify additions to the 15 maximum amount of property tax dollars under section 16 384.1A to be levied for a period of time not to exceed 17 three years unless, at any time before the date 18 fixed for certifying the budget, a petition signed 19 by eligible electors residing within the city in a 20 number equal to at least two percent of the registered 21 voters of the city, ask that the question of certifying 22 additions to the maximum amount of property tax dollars 23 be submitted to the registered voters. Upon receipt 24 of such a petition, the city council shall direct the 25 county commissioner of elections to call a special 26 election upon the question of certifying additions to 27 the maximum amount of property tax dollars. 28 2. The proposition of certifying additions to 29 the maximum amount of property tax dollars under this 30 subsection is approved if the vote in favor of the 31 proposition is a simple majority of the total votes 32 cast on the proposition. 33 3. The special election is subject to the 34 following: 35 a. The city council must give at least thirty-two 36 days’ notice to the county commissioner of elections 37 that the special election is to be held. 38 b. The special election shall be held on the 39 first Tuesday in March and be conducted by the county 40 commissioner of elections in accordance with law. 41 c. The proposition to be submitted shall be 42 substantially in the following form: 43 Vote “yes” or “no” on the following: Shall the city 44 of _______ levy for an additional $_______ each year 45 for ___ years beginning July 1, _____, in excess of the 46 statutory maximum amount of property tax dollar limits 47 otherwise applicable under Iowa Code section 384.1A? 48 d. The canvass shall be held beginning at 1:00 p.m. 49 on the second day which is not a holiday following the 50 -5- SF522.2607 (3) 84 md/sc 5/ 10

special election. 1 e. Notice of the special election shall be 2 published at least once in a newspaper as specified 3 in section 362.3 prior to the date of the special 4 election. The notice shall appear as early as 5 practicable after the city council has directed 6 the county commissioner of elections to submit the 7 proposition to the voters. 8 4. The amount of additional property tax dollars 9 certified under this section shall not be included in 10 the computation of the maximum amount of property tax 11 dollars which may be certified and levied under section 12 384.1A. > 13 3. Page 1, by striking lines 12 through 28 and 14 inserting: 15 < 1. “Department” means the department of revenue. 16 2. “Fund” means the business property tax credit 17 fund created in section 426C.2. 18 3. “Parcel” means as defined in section 445.1. 19 4. “Property taxes due and payable” means property 20 taxes including any special assessments, but exclusive 21 of delinquent property taxes, interest, and charges for 22 services, due on a parcel in this state. > 23 4. By striking page 1, line 33, through page 2, 24 line 16, and inserting < fiscal year beginning July 1, 25 2012, and for each fiscal year thereafter, there is 26 appropriated from the general fund of the state to 27 the department to be credited to the fund, an amount 28 sufficient to provide fifty percent of the total amount 29 of the business property tax credits authorized in this 30 chapter. > 31 5. By striking page 2, line 23, through page 5, 32 line 34, and inserting: 33 < Sec. ___. NEW SECTION . 426C.3 Eligibility for 34 credit. 35 1. Each parcel classified and taxed as commercial 36 property, industrial property, or railway property 37 under chapter 434, and improved with permanent 38 construction, is eligible for a credit under this 39 chapter. 40 2. The county auditor shall in each year certify 41 to the department on or before June 30 the parcels 42 located in the county that are eligible for the credit 43 and the amount of property taxes due and payable on 44 such parcels in the fiscal year for which the credit 45 is applicable that are attributable to permanent 46 improvements to the parcel. 47 Sec. ___. NEW SECTION . 426C.4 Amount of credit. 48 The amount of the credit for each eligible parcel 49 certified by the county auditor under section 426C.3, 50 -6- SF522.2607 (3) 84 md/sc 6/ 10 #3. #4. #5.

subsection 2, shall be determined as follows: 1 1. For property taxes due and payable in the fiscal 2 year beginning July 1, 2012, the amount of the credit 3 shall be an amount equal to six percent of the total 4 amount of property taxes due and payable on the parcel 5 as certified to the department under section 426C.3, 6 subsection 2. 7 2. For property taxes due and payable in the fiscal 8 year beginning July 1, 2013, the amount of the credit 9 shall be an amount equal to twelve percent of the total 10 amount of property taxes due and payable on the parcel 11 as certified to the department under section 426C.3, 12 subsection 2. 13 3. For property taxes due and payable in the 14 fiscal year beginning July 1, 2014, the amount of the 15 credit shall be an amount equal to eighteen percent 16 of the total amount of property taxes due and payable 17 as certified to the department under section 426C.3, 18 subsection 2. 19 4. For property taxes due and payable in the 20 fiscal year beginning July 1, 2015, and each fiscal 21 year thereafter, the amount of the credit shall be 22 an amount equal to twenty-four percent of the total 23 amount of property taxes due and payable on the parcel 24 as certified to the department under section 426C.3, 25 subsection 2. > 26 6. Page 6, line 3, by striking < allowed > and 27 inserting < authorized > 28 7. Page 6, line 5, by striking < or property unit > 29 8. Page 6, by striking line 8 and inserting 30 < authorized and funded by the state on each eligible 31 parcel in such taxing > 32 9. Page 6, line 10, by striking < or property unit > 33 10. Page 6, line 11, by striking < or property unit > 34 11. Page 6, line 12, by striking < in such taxing 35 district > and inserting < upon the parcel > 36 12. Page 6, line 17, after < fund. > by inserting 37 < Those portions of the credit not funded by the state 38 shall be allocated to the several taxing districts 39 in the proportion that the levy made by such taxing 40 district upon the parcel bears to the total levy upon 41 the parcel by all taxing districts imposing a property 42 tax on the parcel. > 43 13. By striking page 6, line 27, through page 7, 44 line 9, and inserting: 45 < 1. Any person whose property is eligible but is 46 denied a credit under the provisions of this chapter 47 may appeal such denial to the district court of the 48 county in which the parcel is located by giving written 49 notice of such appeal to the county auditor. 50 -7- SF522.2607 (3) 84 md/sc 7/ 10 #6. #7. #8. #9. #10. #11. #12. #13.

2. If a denial of credit is subsequently reversed 1 on appeal, the credit shall be authorized on the 2 applicable parcel and the director of revenue, the 3 county > 4 14. Page 7, line 21, by striking < allowable > and 5 inserting < authorized > 6 15. Page 7, line 25, by striking < filed > and 7 inserting < authorized > 8 16. Page 7, line 31, by striking < or property unit > 9 17. Page 7, line 31, by striking < allowed > and 10 inserting < authorized > 11 18. Page 7, line 32, by striking < or property unit > 12 19. Page 7, line 33, by striking < allowed > and 13 inserting < authorized > 14 20. Page 8, by striking lines 9 through 17. 15 21. Page 8, by striking lines 22 through 26. 16 22. Page 8, after line 26 by inserting: 17 < Sec. ___. IMPLEMENTATION OF ACT. The provisions 18 in section 25B.7, relating to the obligation of the 19 state to reimburse local jurisdictions for property tax 20 credits and exemptions, do not apply to this Act to the 21 extent of fifty percent of the amount of the credits 22 authorized under chapter 426C. > 23 23. Page 8, line 29, after < 2012 > by inserting < , 24 and to budget years beginning on or after July 1, 2012 > 25 24. Title page, line 1, after < Act > by inserting 26 < relating to property taxation by establishing a 27 property tax limitation for cities and counties, by > 28 25. Title page, lines 2 and 3, by striking 29 < providing penalties, > 30 26. By renumbering, redesignating, and correcting 31 internal references as necessary. 32 ______________________________ BILL ANDERSON ______________________________ ROBERT BACON ______________________________ MERLIN BARTZ ______________________________ JERRY BEHN -8- SF522.2607 (3) 84 md/sc 8/ 10 #14. #15. #16. #17. #18. #19. #20. #21. #22. #23. #24. #25. #26.

______________________________ RICK BERTRAND ______________________________ NANCY J. BOETTGER ______________________________ MARK CHELGREN ______________________________ BILL DIX ______________________________ JONI ERNST ______________________________ RANDY FEENSTRA ______________________________ SANDRA H. GREINER ______________________________ JAMES F. HAHN ______________________________ SHAWN HAMERLINCK ______________________________ HUBERT HOUSER ______________________________ DAVID JOHNSON ______________________________ TIM KAPUCIAN ______________________________ STEVE KETTERING -9- SF522.2607 (3) 84 md/sc 9/ 10