Senate File 2344 S-5258 Amend Senate File 2344 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < DIVISION I 4 EARNED INCOME TAX CREDIT 5 Section 1. Section 422.12B, subsection 1, Code 6 2011, is amended to read as follows: 7 1. The taxes imposed under this division less the 8 credits allowed under section 422.12 shall be reduced 9 by an earned income credit equal to seven ten percent 10 of the federal earned income credit provided in section 11 32 of the Internal Revenue Code. Any credit in excess 12 of the tax liability is refundable. 13 Sec. 2. RETROACTIVE APPLICABILITY. This division 14 of this Act applies retroactively to January 1, 2012, 15 for tax years beginning on or after that date. 16 DIVISION II 17 PROPERTY TAX ASSESSMENT LIMITATIONS —— PROPERTY TAX 18 REPLACEMENT 19 Sec. 3. Section 257.3, subsection 1, Code 2011, is 20 amended by adding the following new paragraph: 21 NEW PARAGRAPH . d. The amount paid to each school 22 district for the commercial and industrial property 23 tax replacement claim under section 441.21A shall be 24 regarded as property tax. The portion of the payment 25 which is foundation property tax shall be determined by 26 applying the foundation property tax rate to the amount 27 computed under section 441.21A, subsection 4, paragraph 28 “a” , and such amount shall be prorated pursuant to 29 section 441.21A, subsection 2, if applicable. 30 Sec. 4. Section 331.512, Code 2011, is amended by 31 adding the following new subsection: 32 NEW SUBSECTION . 13A. Carry out duties relating 33 to the calculation and payment of commercial and 34 industrial property tax replacement claims under 35 section 441.21A. 36 Sec. 5. Section 331.559, Code 2011, is amended by 37 adding the following new subsection: 38 NEW SUBSECTION . 25A. Carry out duties relating 39 to the calculation and payment of commercial and 40 industrial property tax replacement claims under 41 section 441.21A. 42 Sec. 6. Section 441.21, subsection 4, Code 43 Supplement 2011, is amended to read as follows: 44 4. For valuations established as of January 45 1, 1979, the percentage of actual value at which 46 agricultural and residential property shall be assessed 47 shall be the quotient of the dividend and divisor as 48 defined in this section . The dividend for each class 49 of property shall be the dividend as determined for 50 -1- SF2344.6158 (3) 84 md/sc 1/ 39 #1.
each class of property for valuations established as 1 of January 1, 1978, adjusted by the product obtained 2 by multiplying the percentage determined for that year 3 by the amount of any additions or deletions to actual 4 value, excluding those resulting from the revaluation 5 of existing properties, as reported by the assessors 6 on the abstracts of assessment for 1978, plus six 7 percent of the amount so determined. However, if the 8 difference between the dividend so determined for 9 either class of property and the dividend for that 10 class of property for valuations established as of 11 January 1, 1978, adjusted by the product obtained by 12 multiplying the percentage determined for that year 13 by the amount of any additions or deletions to actual 14 value, excluding those resulting from the revaluation 15 of existing properties, as reported by the assessors 16 on the abstracts of assessment for 1978, is less than 17 six percent, the 1979 dividend for the other class of 18 property shall be the dividend as determined for that 19 class of property for valuations established as of 20 January 1, 1978, adjusted by the product obtained by 21 multiplying the percentage determined for that year 22 by the amount of any additions or deletions to actual 23 value, excluding those resulting from the revaluation 24 of existing properties, as reported by the assessors on 25 the abstracts of assessment for 1978, plus a percentage 26 of the amount so determined which is equal to the 27 percentage by which the dividend as determined for the 28 other class of property for valuations established as 29 of January 1, 1978, adjusted by the product obtained 30 by multiplying the percentage determined for that year 31 by the amount of any additions or deletions to actual 32 value, excluding those resulting from the revaluation 33 of existing properties, as reported by the assessors 34 on the abstracts of assessment for 1978, is increased 35 in arriving at the 1979 dividend for the other class 36 of property. The divisor for each class of property 37 shall be the total actual value of all such property 38 in the state in the preceding year, as reported by the 39 assessors on the abstracts of assessment submitted 40 for 1978, plus the amount of value added to said 41 total actual value by the revaluation of existing 42 properties in 1979 as equalized by the director of 43 revenue pursuant to section 441.49 . The director shall 44 utilize information reported on abstracts of assessment 45 submitted pursuant to section 441.45 in determining 46 such percentage. For valuations established as of 47 January 1, 1980, and each assessment year thereafter 48 beginning before January 1, 2013 , the percentage of 49 actual value as equalized by the director of revenue 50 -2- SF2344.6158 (3) 84 md/sc 2/ 39
as provided in section 441.49 at which agricultural 1 and residential property shall be assessed shall be 2 calculated in accordance with the methods provided 3 herein including the limitation of increases in 4 agricultural and residential assessed values to the 5 percentage increase of the other class of property if 6 the other class increases less than the allowable limit 7 adjusted to include the applicable and current values 8 as equalized by the director of revenue, except that 9 any references to six percent in this subsection shall 10 be four percent. For valuations established as of 11 January 1, 2013, and each assessment year thereafter, 12 the percentage of actual value as equalized by the 13 director of revenue as provided in section 441.49 at 14 which agricultural and residential property shall be 15 assessed shall be calculated in accordance with the 16 methods provided herein including the limitation of 17 increases in agricultural and residential assessed 18 values to the percentage increase of the other class 19 of property if the other class increases less than the 20 allowable limit adjusted to include the applicable and 21 current values as equalized by the director of revenue, 22 except that any references to six percent in this 23 subsection shall be three percent. 24 Sec. 7. Section 441.21, subsection 5, Code 25 Supplement 2011, is amended to read as follows: 26 5. a. For valuations established as of January 27 1, 1979, commercial property and industrial property, 28 excluding properties referred to in section 427A.1, 29 subsection 8 , shall be assessed as a percentage of 30 the actual value of each class of property. The 31 percentage shall be determined for each class of 32 property by the director of revenue for the state in 33 accordance with the provisions of this section . For 34 valuations established as of January 1, 1979, the 35 percentage shall be the quotient of the dividend and 36 divisor as defined in this section . The dividend 37 for each class of property shall be the total actual 38 valuation for each class of property established for 39 1978, plus six percent of the amount so determined. 40 The divisor for each class of property shall be the 41 valuation for each class of property established for 42 1978, as reported by the assessors on the abstracts 43 of assessment for 1978, plus the amount of value 44 added to the total actual value by the revaluation 45 of existing properties in 1979 as equalized by the 46 director of revenue pursuant to section 441.49 . For 47 valuations established as of January 1, 1979, property 48 valued by the department of revenue pursuant to 49 chapters 428 , 433 , 437 , and 438 shall be considered 50 -3- SF2344.6158 (3) 84 md/sc 3/ 39
as one class of property and shall be assessed as a 1 percentage of its actual value. The percentage shall 2 be determined by the director of revenue in accordance 3 with the provisions of this section . For valuations 4 established as of January 1, 1979, the percentage 5 shall be the quotient of the dividend and divisor as 6 defined in this section . The dividend shall be the 7 total actual valuation established for 1978 by the 8 department of revenue, plus ten percent of the amount 9 so determined. The divisor for property valued by 10 the department of revenue pursuant to chapters 428 , 11 433 , 437 , and 438 shall be the valuation established 12 for 1978, plus the amount of value added to the total 13 actual value by the revaluation of the property by 14 the department of revenue as of January 1, 1979. 15 For valuations established as of January 1, 1980, 16 commercial property and industrial property, excluding 17 properties referred to in section 427A.1, subsection 18 8 , shall be assessed at a percentage of the actual 19 value of each class of property. The percentage 20 shall be determined for each class of property by 21 the director of revenue for the state in accordance 22 with the provisions of this section . For valuations 23 established as of January 1, 1980, the percentage 24 shall be the quotient of the dividend and divisor as 25 defined in this section . The dividend for each class 26 of property shall be the dividend as determined for 27 each class of property for valuations established as 28 of January 1, 1979, adjusted by the product obtained 29 by multiplying the percentage determined for that year 30 by the amount of any additions or deletions to actual 31 value, excluding those resulting from the revaluation 32 of existing properties, as reported by the assessors 33 on the abstracts of assessment for 1979, plus four 34 percent of the amount so determined. The divisor 35 for each class of property shall be the total actual 36 value of all such property in 1979, as equalized by 37 the director of revenue pursuant to section 441.49 , 38 plus the amount of value added to the total actual 39 value by the revaluation of existing properties in 40 1980. The director shall utilize information reported 41 on the abstracts of assessment submitted pursuant 42 to section 441.45 in determining such percentage. 43 For valuations established as of January 1, 1980, 44 property valued by the department of revenue pursuant 45 to chapters 428 , 433 , 437 , and 438 shall be assessed 46 at a percentage of its actual value. The percentage 47 shall be determined by the director of revenue in 48 accordance with the provisions of this section . For 49 valuations established as of January 1, 1980, the 50 -4- SF2344.6158 (3) 84 md/sc 4/ 39
percentage shall be the quotient of the dividend and 1 divisor as defined in this section . The dividend shall 2 be the total actual valuation established for 1979 by 3 the department of revenue, plus eight percent of the 4 amount so determined. The divisor for property valued 5 by the department of revenue pursuant to chapters 428 , 6 433 , 437 , and 438 shall be the valuation established 7 for 1979, plus the amount of value added to the total 8 actual value by the revaluation of the property by 9 the department of revenue as of January 1, 1980. For 10 valuations established as of January 1, 1981, and 11 each year thereafter, the percentage of actual value 12 as equalized by the director of revenue as provided 13 in section 441.49 at which commercial property and 14 industrial property, excluding properties referred to 15 in section 427A.1, subsection 8 , shall be assessed 16 shall be calculated in accordance with the methods 17 provided herein, except that any references to six 18 percent in this subsection shall be four percent. 19 For valuations established as of January 1, 1981, 20 and each year thereafter, the percentage of actual 21 value at which property valued by the department of 22 revenue pursuant to chapters 428 , 433 , 437 , and 438 23 shall be assessed shall be calculated in accordance 24 with the methods provided herein, except that any 25 references to ten percent in this subsection shall be 26 eight percent. For assessment years beginning on or 27 after January 1, 2013, but before January 1, 2019, the 28 percentage of actual value at which property valued by 29 the department of revenue pursuant to chapters 428, 30 433, 437, and 438 shall be assessed shall be calculated 31 using property valuations for the applicable assessment 32 years that include the total value of property exempt 33 from taxation under section 433.4, subsection 2, 34 paragraph “b” , if enacted in division III of this Act, 35 notwithstanding section 433.4, subsection 2, paragraph 36 “c” , if enacted in division III of this Act. Beginning 37 with valuations established as of January 1, 1979, 38 and each assessment year thereafter beginning before 39 January 1, 2013 , property valued by the department of 40 revenue pursuant to chapter 434 shall also be assessed 41 at a percentage of its actual value which percentage 42 shall be equal to the percentage determined by the 43 director of revenue for commercial property, industrial 44 property, or property valued by the department of 45 revenue pursuant to chapters 428 , 433 , 437 , and 438 , 46 whichever is lowest. For valuations established 47 on or after January 1, 2013, property valued by the 48 department of revenue pursuant to chapter 434 shall 49 be assessed at a percentage of its actual value equal 50 -5- SF2344.6158 (3) 84 md/sc 5/ 39
to the percentage of actual value at which property 1 assessed as commercial property is assessed for the 2 same assessment year under paragraph “b” . 3 b. For valuations established on or after January 4 1, 2013, commercial property, excluding properties 5 referred to in section 427A.1, subsection 8, shall 6 be assessed as a percentage of its actual value, as 7 determined in this paragraph “b” . For valuations 8 established for the assessment year beginning January 9 1, 2013, the percentage of actual value as equalized by 10 the director of revenue as provided in section 441.49 11 at which commercial property shall be assessed shall 12 be ninety-eight percent. For valuations established 13 for the assessment year beginning January 1, 2014, 14 the percentage of actual value as equalized by the 15 director of revenue as provided in section 441.49 at 16 which commercial property shall be assessed shall 17 be ninety-six percent. For valuations established 18 for the assessment year beginning January 1, 2015, 19 the percentage of actual value as equalized by the 20 director of revenue as provided in section 441.49 at 21 which commercial property shall be assessed shall 22 be ninety-four percent. For valuations established 23 for the assessment year beginning January 1, 2016, 24 the percentage of actual value as equalized by the 25 director of revenue as provided in section 441.49 at 26 which commercial property shall be assessed shall be 27 ninety-two percent. For valuations established for 28 the assessment year beginning January 1, 2017, and 29 each assessment year thereafter, the percentage of 30 actual value as equalized by the director of revenue as 31 provided in section 441.49 at which commercial property 32 shall be assessed shall be ninety percent. 33 c. For valuations established on or after January 34 1, 2013, industrial property, excluding properties 35 referred to in section 427A.1, subsection 8, shall 36 be assessed as a percentage of its actual value, as 37 determined in this paragraph “c” . For valuations 38 established for the assessment year beginning January 39 1, 2013, the percentage of actual value as equalized by 40 the director of revenue as provided in section 441.49 41 at which industrial property shall be assessed shall 42 be ninety-eight percent. For valuations established 43 for the assessment year beginning January 1, 2014, 44 the percentage of actual value as equalized by the 45 director of revenue as provided in section 441.49 at 46 which industrial property shall be assessed shall 47 be ninety-six percent. For valuations established 48 for the assessment year beginning January 1, 2015, 49 the percentage of actual value as equalized by the 50 -6- SF2344.6158 (3) 84 md/sc 6/ 39
director of revenue as provided in section 441.49 at 1 which industrial property shall be assessed shall 2 be ninety-four percent. For valuations established 3 for the assessment year beginning January 1, 2016, 4 the percentage of actual value as equalized by the 5 director of revenue as provided in section 441.49 at 6 which industrial property shall be assessed shall be 7 ninety-two percent. For valuations established for 8 the assessment year beginning January 1, 2017, and 9 each assessment year thereafter, the percentage of 10 actual value as equalized by the director of revenue as 11 provided in section 441.49 at which industrial property 12 shall be assessed shall be ninety percent. 13 Sec. 8. NEW SECTION . 441.21A Commercial and 14 industrial property tax replacement fund —— replacement 15 claims. 16 1. a. The commercial and industrial property 17 tax replacement fund is created in the state treasury 18 under the control of the department of revenue for 19 the payment of commercial and industrial property tax 20 replacement claims in fiscal years beginning on or 21 after July 1, 2014. 22 b. For the fiscal year beginning July 1, 2014, 23 there is appropriated from the general fund of the 24 state to the department of revenue to be credited to 25 the fund an amount necessary to pay all commercial 26 and industrial property tax replacement claims for 27 the fiscal year, not to exceed twenty-eight million 28 dollars. For the fiscal year beginning July 1, 2015, 29 there is appropriated from the general fund of the 30 state to the department of revenue to be credited to 31 the fund an amount necessary to pay all commercial and 32 industrial property tax replacement claims for the 33 fiscal year, not to exceed fifty-six million dollars. 34 For the fiscal year beginning July 1, 2016, there 35 is appropriated from the general fund of the state 36 to the department of revenue to be credited to the 37 fund an amount necessary to pay all commercial and 38 industrial property tax replacement claims for the 39 fiscal year, not to exceed eighty-four million dollars. 40 For the fiscal year beginning July 1, 2017, there is 41 appropriated from the general fund of the state to the 42 department of revenue to be credited to the fund an 43 amount necessary to pay all commercial and industrial 44 property tax replacement claims for the fiscal year, 45 not to exceed one hundred twelve million dollars. For 46 the fiscal year beginning July 1, 2018, and each fiscal 47 year thereafter, there is appropriated from the general 48 fund of the state to the department of revenue to be 49 credited to the fund an amount necessary to pay all 50 -7- SF2344.6158 (3) 84 md/sc 7/ 39
commercial and industrial property tax replacement 1 claims for the fiscal year, not to exceed one hundred 2 forty million dollars. 3 2. Beginning with the fiscal year beginning July 4 1, 2014, each county treasurer shall be paid from the 5 commercial and industrial property tax replacement 6 fund an amount equal to the amount of the commercial 7 and industrial property tax replacement claims in the 8 county, as calculated in subsection 4. If an amount 9 appropriated for a fiscal year is insufficient to pay 10 all replacement claims, the director of revenue shall 11 prorate the disbursements from the fund to the county 12 treasurers and shall notify the county auditors of 13 the pro rata percentage on or before September 30. 14 Any unspent balance in the fund as of June 30 of each 15 year shall revert to the general fund of the state as 16 provided by section 8.33. 17 3. a. On or before July 1 of each fiscal year 18 beginning on or after July 1, 2014, the assessor shall 19 determine the total assessed value of all commercial 20 property, industrial property, and property assessed 21 by the department of revenue pursuant to chapter 434 22 assessed for taxes due and payable in that fiscal year 23 and the total assessed value of such property assessed 24 as of January 1, 2012, and shall report the valuations 25 to the county auditor. 26 b. For purposes of calculating replacement claims 27 under this division of this Act, the total assessed 28 value of commercial property, industrial property, and 29 property assessed by the department of revenue pursuant 30 to chapter 434 as of January 1, 2012, shall not include 31 property classified as multiresidential property under 32 section 441.21, subsection 13, if enacted by division 33 VI of this Act, which was classified as commercial 34 property, industrial property, or property assessed by 35 the department of revenue pursuant to chapter 434 for 36 assessment years beginning before January 1, 2013. 37 4. On or before September 1 of each fiscal year 38 beginning on or after July 1, 2014, the county auditor 39 shall prepare a statement, based upon the report 40 received pursuant to subsection 3, listing for each 41 taxing district in the county: 42 a. The difference between the assessed valuation 43 of all commercial property, industrial property, 44 and property assessed by the department of revenue 45 pursuant to chapter 434 for the assessment year used 46 to calculate taxes which are due and payable in the 47 applicable fiscal year and the assessed value of all 48 commercial property, industrial property, and property 49 assessed by the department of revenue pursuant to 50 -8- SF2344.6158 (3) 84 md/sc 8/ 39
chapter 434 assessed as of January 1, 2012. If the 1 assessed value of all commercial property, industrial 2 property, and property assessed by the department of 3 revenue pursuant to chapter 434 assessed as of January 4 1, 2012, is less than the assessed valuation of all 5 commercial property, industrial property, and property 6 assessed by the department of revenue pursuant to 7 chapter 434 for the assessment year used to calculate 8 taxes which are due and payable in the applicable 9 fiscal year, there is no tax replacement for that 10 taxing district for the fiscal year. 11 b. The tax levy rate for each taxing district for 12 that fiscal year. 13 c. The commercial and industrial property tax 14 replacement claim for each taxing district. For 15 fiscal years beginning on or after July 1, 2014, the 16 replacement claim is equal to the amount determined 17 pursuant to paragraph “a” , multiplied by the tax rate 18 specified in paragraph “b” . 19 5. For purposes of computing replacement amounts 20 under this section, that portion of an urban renewal 21 area defined as the sum of the assessed valuations 22 defined in section 403.19, subsections 1 and 2, shall 23 be considered a taxing district. 24 6. a. The county auditor shall certify and forward 25 one copy of the statement to the department of revenue 26 not later than September 1 of each year. 27 b. The replacement claims shall be paid to each 28 county treasurer in equal installments in September 29 and March of each year. The county treasurer shall 30 apportion the replacement claim payments among the 31 eligible taxing districts in the county. 32 c. If the taxing district is an urban renewal 33 area, the amount of the replacement claim shall be 34 apportioned as provided in subsection 7. 35 7. a. If the total assessed value of property 36 located in an urban renewal area taxing district 37 for the assessment year for property taxes due and 38 payable in the applicable fiscal year is equal to or 39 more than that portion of such valuation defined in 40 section 403.19, subsection 1, the total replacement 41 claim amount computed pursuant to subsection 4 shall be 42 credited to that portion of the assessed value defined 43 in section 403.19, subsection 2. 44 b. If the total assessed value of the property 45 located in an urban renewal area taxing district for 46 the assessment year for property taxes due and payable 47 in the applicable fiscal year is less than that portion 48 of such valuation defined in section 403.19, subsection 49 1, the replacement amount shall be credited to those 50 -9- SF2344.6158 (3) 84 md/sc 9/ 39
portions of the assessed value defined in section 1 403.19, subsections 1 and 2, as follows: 2 (1) To that portion defined in section 403.19, 3 subsection 1, an amount equal to the amount that would 4 be produced by multiplying the applicable consolidated 5 levy rate times the difference between the assessed 6 value of the taxable property defined in section 7 403.19, subsection 1, and the total assessed value 8 of the property located in the urban renewal area 9 taxing district in the assessment year for property 10 taxes due and payable in the fiscal year for which the 11 replacement claim is computed. 12 (2) To that portion defined in section 403.19, 13 subsection 2, the remaining amount, if any. 14 c. Notwithstanding the allocation provisions 15 of paragraphs “a” and “b” , the amount of the tax 16 replacement amount that shall be allocated to that 17 portion of the assessed value defined in section 18 403.19, subsection 2, shall not exceed the amount 19 equal to the amount certified to the county auditor 20 under section 403.19 for the fiscal year in which 21 the claim is paid, after deduction of the amount of 22 other revenues committed for payment on that amount 23 for the fiscal year. The amount not allocated to 24 that portion of the assessed value defined in section 25 403.19, subsection 2, as a result of the operation of 26 this paragraph, shall be allocated to that portion of 27 assessed value defined in section 403.19, subsection 1. 28 d. The amount of the replacement claim amount 29 credited to the portion of the assessed value defined 30 in section 403.19, subsection 1, shall be allocated 31 to and when received be paid into the fund for the 32 respective taxing district as taxes by or for the 33 taxing district into which all other property taxes 34 are paid. The amount of the replacement claim amount 35 credited to the portion of the assessed value defined 36 in section 403.19, subsection 2, shall be allocated to 37 and when collected be paid into the special fund of the 38 municipality under section 403.19, subsection 2. 39 Sec. 9. SAVINGS PROVISION. This division of this 40 Act, pursuant to section 4.13, does not affect the 41 operation of, or prohibit the application of, prior 42 provisions of section 441.21, or rules adopted under 43 chapter 17A to administer prior provisions of section 44 441.21, for assessment years beginning before January 45 1, 2013, and for duties, powers, protests, appeals, 46 proceedings, actions, or remedies attributable to an 47 assessment year beginning before January 1, 2013. 48 Sec. 10. APPLICABILITY. This division of this 49 Act applies to assessment years beginning on or after 50 -10- SF2344.6158 (3) 84 md/sc 10/ 39
January 1, 2013. 1 DIVISION III 2 TELECOMMUNICATIONS PROPERTY TAX 3 Sec. 11. Section 427A.1, subsection 1, paragraph h, 4 Code 2011, is amended to read as follows: 5 h. Property assessed by the department of revenue 6 pursuant to sections 428.24 to 428.29 , or chapters 433 , 7 434 , 437 , 437A , and 438 . 8 Sec. 12. Section 433.4, Code 2011, is amended to 9 read as follows: 10 433.4 Assessment. 11 1. The director of revenue shall on or before 12 October 31 each year, proceed to find the actual value 13 of the property of these companies in this state used 14 by the companies in the transaction of telegraph and 15 telephone business , taking into consideration the 16 information obtained from the statements required, and 17 any further information the director can obtain, using 18 the same as a means for determining the actual cash 19 value of the property of these companies within this 20 state. The director shall also take into consideration 21 the valuation of all property of these companies, 22 including franchises and the use of the property in 23 connection with lines outside the state, and making 24 these deductions as may be necessary on account of 25 extra value of property outside the state as compared 26 with the value of property in the state, in order that 27 the actual cash value of the property of the company 28 within this state may be ascertained. The assessment 29 shall include all property of every kind and character 30 whatsoever, real, personal, or mixed, used by the 31 companies in the transaction of telegraph and telephone 32 business; and the The property so included in the 33 assessment shall not be taxed in any other manner than 34 as provided in this chapter . 35 2. a. Except as provided in paragraph “c ”, for 36 assessment years beginning on or after January 1, 37 2013, a company’s property, excluding the property 38 identified in paragraph “b” as exempt from taxation, 39 shall be subject to assessment and taxation under this 40 chapter by the director of revenue in the same manner 41 as property assessed and taxed as commercial property 42 under chapters 427, 427A, 427B, 428, and 441. 43 b. All of the following is exempt from taxation and 44 shall not be assessed for taxation under this chapter: 45 (1) Central office equipment. 46 (2) Transmission equipment. 47 (3) Qualified telephone company property. However, 48 qualified telephone company property shall be valued 49 and included in the company’s assessment for the 50 -11- SF2344.6158 (3) 84 md/sc 11/ 39
assessment years, and to the extent specified, in 1 paragraph “c” . 2 (4) Intangible property. 3 c. For assessment years beginning on or after 4 January 1, 2013, but before January 1, 2018, the 5 director of revenue shall include as part of the actual 6 value determined under paragraph “a” for the applicable 7 assessment year, the following: 8 (1) For the assessment year beginning January 9 1, 2013, an amount equal to the actual value of the 10 company’s qualified telephone company property that 11 exceeds five million dollars. 12 (2) For the assessment year beginning January 13 1, 2014, an amount equal to the actual value of the 14 company’s qualified telephone company property that 15 exceeds twenty-five million dollars. 16 (3) For the assessment year beginning January 17 1, 2015, an amount equal to the actual value of the 18 company’s qualified telephone company property that 19 exceeds fifty million dollars. 20 (4) For the assessment year beginning January 21 1, 2016, an amount equal to the actual value of the 22 company’s qualified telephone company property that 23 exceeds one hundred million dollars. 24 (5) For the assessment year beginning January 25 1, 2017, an amount equal to the actual value of the 26 company’s qualified telephone company property that 27 exceeds one hundred fifty million dollars. 28 Sec. 13. Section 433.12, Code 2011, is amended by 29 adding the following new subsections: 30 NEW SUBSECTION . 1A. As used in this chapter, 31 “central office equipment” means equipment owned or 32 leased by a company and used in initiating, amplifying, 33 switching, or monitoring telecommunications services, 34 including such ancillary equipment necessary for the 35 support, regulation, control, repair, or testing of 36 such equipment. 37 NEW SUBSECTION . 2A. As used in this chapter, 38 “intangible property” includes but is not limited to 39 goodwill associated with a company. 40 NEW SUBSECTION . 3. As used in this chapter, 41 “qualified telephone company property” means telephone 42 wire, telephone cable, fiber optic cable, conduit 43 systems, poles, or other equipment owned or leased by 44 a company and used by the company to transmit sound or 45 data. 46 NEW SUBSECTION . 4. As used in this chapter, 47 “transmission equipment” means equipment owned or 48 leased by a company and used in the process of sending 49 information from one location to another location, 50 -12- SF2344.6158 (3) 84 md/sc 12/ 39
including such ancillary equipment necessary for the 1 support, regulation, control, repair, or testing of 2 such equipment. 3 Sec. 14. Section 476.1D, subsection 10, Code 4 Supplement 2011, is amended by striking the subsection. 5 Sec. 15. SAVINGS PROVISION. This division of this 6 Act, pursuant to section 4.13, does not affect the 7 operation of, or prohibit the application of, prior 8 provisions of chapter 433, or rules adopted under 9 chapter 17A to administer prior provisions of chapter 10 433, for assessment years beginning before January 11 1, 2013, and for duties, powers, protests, appeals, 12 proceedings, actions, or remedies attributable to an 13 assessment year beginning before January 1, 2013. 14 Sec. 16. IMPLEMENTATION. Section 25B.7 shall not 15 apply to this division of this Act. 16 Sec. 17. EFFECTIVE DATE. 17 1. Except as provided in subsection 2, this 18 division of this Act takes effect July 1, 2012. 19 2. The section of this division of this Act 20 amending section 476.1D takes effect July 1, 2017. 21 Sec. 18. APPLICABILITY. 22 1. Except as provided in subsection 2, this 23 division of this Act applies to assessment years 24 beginning on or after January 1, 2013. 25 2. The section of this division of this Act 26 amending section 476.1D applies to assessment years 27 beginning on or after January 1, 2018. 28 DIVISION IV 29 COUNTY AND CITY BUDGET LIMITATION 30 Sec. 19. Section 23A.2, subsection 10, paragraph h, 31 Code 2011, is amended to read as follows: 32 h. The performance of an activity listed in 33 section 331.424 , Code 2011, as a service for which a 34 supplemental levy county may be certified include in 35 its budget . 36 Sec. 20. Section 28M.5, subsection 2, Code 2011, is 37 amended to read as follows: 38 2. If a regional transit district budget allocates 39 revenue responsibilities to the board of supervisors 40 of a participating county, the amount of the regional 41 transit district levy that is the responsibility of the 42 participating county shall be deducted from the maximum 43 rates amount of taxes authorized to be levied by the 44 county pursuant to section 331.423 , subsections 1 and 45 2 subsection 3, paragraphs “b” and “c” , as applicable, 46 unless the county meets its revenue responsibilities as 47 allocated in the budget from other available revenue 48 sources. However, for a regional transit district 49 that includes a county with a population of less than 50 -13- SF2344.6158 (3) 84 md/sc 13/ 39
three hundred thousand, the amount of the regional 1 transit district levy that is the responsibility of 2 such participating county shall be deducted from the 3 maximum rate amount of taxes authorized to be levied 4 by the county pursuant to section 331.423, subsection 5 1 3, paragraph “b” . 6 Sec. 21. Section 123.38, subsection 2, Code 2011, 7 is amended to read as follows: 8 2. Any licensee or permittee, or the licensee’s 9 or permittee’s executor or administrator, or any 10 person duly appointed by the court to take charge of 11 and administer the property or assets of the licensee 12 or permittee for the benefit of the licensee’s or 13 permittee’s creditors, may voluntarily surrender a 14 license or permit to the division. When a license 15 or permit is surrendered the division shall notify 16 the local authority, and the division or the local 17 authority shall refund to the person surrendering the 18 license or permit, a proportionate amount of the fee 19 received by the division or the local authority for 20 the license or permit as follows: if a license or 21 permit is surrendered during the first three months 22 of the period for which it was issued, the refund 23 shall be three-fourths of the amount of the fee; 24 if surrendered more than three months but not more 25 than six months after issuance, the refund shall be 26 one-half of the amount of the fee; if surrendered more 27 than six months but not more than nine months after 28 issuance, the refund shall be one-fourth of the amount 29 of the fee. No refund shall be made, however, for 30 any special liquor permit, nor for a liquor control 31 license, wine permit, or beer permit surrendered more 32 than nine months after issuance. For purposes of this 33 subsection, any portion of license or permit fees 34 used for the purposes authorized in section 331.424, 35 subsection 1 , paragraph “a” , subparagraphs (1) and 36 (2), Code 2011, and in section 331.424A , shall not be 37 deemed received either by the division or by a local 38 authority. No refund shall be made to any licensee or 39 permittee, upon the surrender of the license or permit, 40 if there is at the time of surrender, a complaint filed 41 with the division or local authority, charging the 42 licensee or permittee with a violation of this chapter . 43 If upon a hearing on a complaint the license or permit 44 is not revoked or suspended, then the licensee or 45 permittee is eligible, upon surrender of the license 46 or permit, to receive a refund as provided in this 47 section ; but if the license or permit is revoked or 48 suspended upon hearing the licensee or permittee is not 49 eligible for the refund of any portion of the license 50 -14- SF2344.6158 (3) 84 md/sc 14/ 39
or permit fee. 1 Sec. 22. Section 218.99, Code 2011, is amended to 2 read as follows: 3 218.99 Counties to be notified of patients’ personal 4 accounts. 5 The administrator in control of a state institution 6 shall direct the business manager of each institution 7 under the administrator’s jurisdiction which is 8 mentioned in section 331.424, subsection 1 , paragraph 9 “a” , subparagraphs (1) and (2), and for which services 10 are paid under section 331.424A , to quarterly inform 11 the county of legal settlement’s entity designated to 12 perform the county’s central point of coordination 13 process of any patient or resident who has an amount 14 in excess of two hundred dollars on account in the 15 patients’ personal deposit fund and the amount on 16 deposit. The administrators shall direct the business 17 manager to further notify the entity designated to 18 perform the county’s central point of coordination 19 process at least fifteen days before the release of 20 funds in excess of two hundred dollars or upon the 21 death of the patient or resident. If the patient or 22 resident has no county of legal settlement, notice 23 shall be made to the director of human services and the 24 administrator in control of the institution involved. 25 Sec. 23. Section 331.263, subsection 2, Code 2011, 26 is amended to read as follows: 27 2. The governing body of the community commonwealth 28 shall have the authority to levy county taxes and shall 29 have the authority to levy city taxes to the extent the 30 city tax levy authority is transferred by the charter 31 to the community commonwealth. A city participating 32 in the community commonwealth shall transfer a portion 33 of the city’s tax levy authorized under section 384.1 34 or 384.12 , whichever is applicable, to the governing 35 body of the community commonwealth. The maximum 36 rates amount of taxes authorized to be levied under 37 sections section 384.1 and the maximum amount of taxes 38 authorized to be levied under section 384.12 by a city 39 participating in the community commonwealth shall be 40 reduced by an amount equal to the rates of the same or 41 similar taxes levied in the city by the governing body 42 of the community commonwealth. 43 Sec. 24. Section 331.301, subsection 12, Code 44 Supplement 2011, is amended to read as follows: 45 12. The board of supervisors may credit funds to 46 a reserve for the purposes authorized by subsection 47 11 of this section ; section 331.424, subsection 1 , 48 paragraph “a” , subparagraph (6); and section 331.441, 49 subsection 2 , paragraph “b” . Moneys credited to the 50 -15- SF2344.6158 (3) 84 md/sc 15/ 39
reserve, and interest earned on such moneys, shall 1 remain in the reserve until expended for purposes 2 authorized by subsection 11 of this section ; section 3 331.424, subsection 1 , paragraph “a” , subparagraph (6); 4 or section 331.441, subsection 2 , paragraph “b” . 5 Sec. 25. Section 331.421, subsections 1 and 10, 6 Code 2011, are amended by striking the subsections. 7 Sec. 26. Section 331.421, Code 2011, is amended by 8 adding the following new subsection: 9 NEW SUBSECTION . 7A. “Item” means a budgeted 10 expenditure, appropriation, or cash reserve from a 11 fund for a service area, program, program element, or 12 purpose. 13 Sec. 27. Section 331.423, Code 2011, is amended by 14 striking the section and inserting in lieu thereof the 15 following: 16 331.423 Property tax dollars —— maximums. 17 1. Annually, the board shall determine separate 18 property tax levy limits to pay for general county 19 services and rural county services in accordance with 20 this section. The property tax levies separately 21 certified for general county services and rural county 22 services under section 331.434 shall not raise property 23 tax dollars that exceed the amount determined under 24 this section. 25 2. For purposes of this section and section 26 331.423B, unless the context otherwise requires: 27 a. “Annual growth factor” means an index, expressed 28 as a percentage, determined by the department of 29 management by January 1 of the calendar year in which 30 the budget year begins. In determining the annual 31 growth factor, the department shall calculate the 32 average of the preceding twelve-month percentage 33 change, which shall be computed on a monthly basis, 34 in the midwest consumer price index, ending with the 35 percentage change for the month of November. The 36 department shall then add that average percentage 37 change to one hundred percent. In no case, however, 38 shall the annual growth factor exceed one hundred four 39 percent. 40 b. “Boundary adjustment” means annexation, 41 severance, incorporation, or discontinuance as those 42 terms are defined in section 368.1. 43 c. “Budget year” is the fiscal year beginning 44 during the calendar year in which a budget is 45 certified. 46 d. “Current fiscal year” is the fiscal year 47 ending during the calendar year in which a budget is 48 certified. 49 e. “Net new valuation taxes” means the amount of 50 -16- SF2344.6158 (3) 84 md/sc 16/ 39
property tax dollars equal to the current fiscal year’s 1 levy rate in the county for general county services or 2 for rural county services, as applicable, multiplied by 3 the increase from the current fiscal year to the budget 4 year in taxable valuation due to the following: 5 (1) Net new construction, excluding all incremental 6 valuation that is released in any one year from either 7 a division of revenue under section 260E.4 or 357H.9, 8 or an urban renewal area for which taxes were being 9 divided under section 403.19 if the property for 10 the valuation being released remains subject to the 11 division of revenue under section 260E.4 or 357H.9, or 12 remains part of the urban renewal area that is subject 13 to a division of revenue under section 403.19. 14 (2) Additions or improvements to existing 15 structures. 16 (3) Remodeling of existing structures for which a 17 building permit is required. 18 (4) Net boundary adjustment. 19 (5) A municipality no longer dividing tax revenues 20 in an urban renewal area as provided in section 403.19, 21 a community college no longer dividing revenues as 22 provided in section 260E.4, or a rural improvement zone 23 no longer dividing revenues as provided in section 24 357H.9. 25 (6) That portion of taxable property located in an 26 urban revitalization area on which an exemption was 27 allowed and such exemption has expired. 28 3. a. For the fiscal year beginning July 1, 2013, 29 and subsequent fiscal years, the maximum amount of 30 property tax dollars which may be certified for levy by 31 a county for general county services and rural county 32 services shall be the maximum property tax dollars 33 calculated under paragraphs “b” and “c” , respectively. 34 b. The maximum property tax dollars that may be 35 levied for general county services is an amount equal 36 to the sum of the following: 37 (1) The annual growth factor times the current 38 fiscal year’s maximum property tax dollars for general 39 county services. 40 (2) The amount of net new valuation taxes in the 41 county. 42 c. The maximum property tax dollars that may be 43 levied for rural county services is an amount equal to 44 the sum of the following: 45 (1) The annual growth factor times the current 46 fiscal year’s maximum property tax dollars for rural 47 county services. 48 (2) The amount of net new valuation taxes in the 49 unincorporated area of the county. 50 -17- SF2344.6158 (3) 84 md/sc 17/ 39
4. a. For purposes of calculating maximum property 1 tax dollars for general county services for the fiscal 2 year beginning July 1, 2013, only, the term “current 3 fiscal year’s maximum property tax dollars” shall mean 4 the total amount of property tax dollars certified by 5 the county for general county services for the fiscal 6 year beginning July 1, 2012. 7 b. For purposes of calculating maximum property tax 8 dollars for rural county services for the fiscal year 9 beginning July 1, 2013, only, the term “current fiscal 10 year’s maximum property tax dollars” shall mean the 11 total amount of property tax dollars certified by the 12 county for rural county services for the fiscal year 13 beginning July 1, 2012. 14 5. Property taxes certified for mental health, 15 mental retardation, and developmental disabilities 16 services, the emergency services fund in section 17 331.424C, the debt service fund in section 331.430, 18 any capital projects fund established by the county 19 for deposit of bond, loan, or note proceeds, and 20 any temporary increase approved pursuant to section 21 331.424, are not included in the maximum amount of 22 property tax dollars that may be certified for a budget 23 year under subsection 3. 24 6. The department of management, in consultation 25 with the county finance committee, shall adopt rules 26 to administer this section. The department shall 27 prescribe forms to be used by counties when making 28 calculations required by this section. 29 Sec. 28. NEW SECTION . 331.423B Ending fund 30 balance. 31 1. a. Budgeted ending fund balances for a budget 32 year in excess of twenty-five percent of budgeted 33 expenditures in either the general fund or rural 34 services fund for that budget year shall be explicitly 35 reserved or designated for a specific purpose. 36 b. A county is encouraged, but not required, to 37 reduce ending fund balances for the budget year to an 38 amount equal to approximately twenty-five percent of 39 budgeted expenditures and transfers from the general 40 fund and rural services fund for that budget year 41 unless a decision is certified by the state appeal 42 board ordering a reduction in the ending fund balance 43 of any of those funds. 44 c. In a protest to the county budget under section 45 331.436, the county shall have the burden of proving 46 that the budgeted balances in excess of twenty-five 47 percent are reasonably likely to be appropriated for 48 the explicitly reserved or designated specific purpose. 49 The excess budgeted balance for the specific purpose 50 -18- SF2344.6158 (3) 84 md/sc 18/ 39
shall be considered an increase in an item in the 1 budget for purposes of section 24.28. 2 2. a. For a county that has, as of June 30, 2012, 3 reduced its actual ending fund balance to less than 4 twenty-five percent of actual expenditures, additional 5 property taxes may be computed and levied as provided 6 in this subsection. The additional property tax levy 7 amount is an amount not to exceed twenty-five percent 8 of actual expenditures from the general fund and rural 9 services fund for the fiscal year beginning July 1, 10 2011, minus the combined ending fund balances for those 11 funds for that year. 12 b. The amount of the additional property taxes 13 shall be apportioned between the general fund and the 14 rural services fund. However, the amount apportioned 15 for general county services and for rural county 16 services shall not exceed for each fund twenty-five 17 percent of actual expenditures for the fiscal year 18 beginning July 1, 2011. 19 c. All or a portion of additional property tax 20 dollars may be levied for the purpose of increasing 21 cash reserves for general county services and rural 22 county services in the budget year. The additional 23 property tax dollars authorized under this subsection 24 but not levied may be carried forward as unused ending 25 fund balance taxing authority until and for the fiscal 26 year beginning July 1, 2018. The amount carried 27 forward shall not exceed twenty-five percent of the 28 maximum amount of property tax dollars available in 29 the current fiscal year. Additionally, property taxes 30 that are levied as unused ending fund balance taxing 31 authority under this subsection may be the subject of 32 a protest under section 331.436, and the amount will 33 be considered an increase in an item in the budget for 34 purposes of section 24.28. The amount of additional 35 property taxes levied under this subsection shall not 36 be included in the computation of the maximum amount of 37 property tax dollars which may be certified and levied 38 under section 331.423. 39 Sec. 29. Section 331.424, Code 2011, is amended by 40 striking the section and inserting in lieu thereof the 41 following: 42 331.424 Authority to levy beyond maximum property 43 tax dollars. 44 1. The board may certify additions to the maximum 45 amount of property tax dollars to be levied for 46 a period of time not to exceed two years if the 47 proposition has been submitted at a special election 48 and received a favorable majority of the votes cast on 49 the proposition. 50 -19- SF2344.6158 (3) 84 md/sc 19/ 39
2. The special election is subject to the 1 following: 2 a. The board must give at least thirty-two days’ 3 notice to the county commissioner of elections that the 4 special election is to be held. In no case, however, 5 shall a notice be given to the county commissioner 6 of elections after December 31 for an election on a 7 proposition to exceed the statutory limits during the 8 fiscal year beginning in the next calendar year. 9 b. The special election shall be conducted by the 10 county commissioner of elections in accordance with 11 law. 12 c. The proposition to be submitted shall be 13 substantially in the following form: 14 Vote “yes” or “no” on the following: Shall the 15 county of _______ levy for an additional $_______ each 16 year for ___ years beginning July 1, _____, in excess 17 of the statutory limits otherwise applicable for the 18 (general county services or rural services) fund? 19 d. The canvass shall be held beginning at 1:00 p.m. 20 on the second day which is not a holiday following the 21 special election. 22 e. Notice of the special election shall be 23 published at least once in a newspaper as specified 24 in section 331.305 prior to the date of the special 25 election. The notice shall appear as early as 26 practicable after the board has voted to submit a 27 proposition to the voters to levy additional property 28 tax dollars. 29 3. Registered voters in the county may vote on the 30 proposition to increase property taxes for the general 31 fund in excess of the statutory limit. Registered 32 voters residing outside the corporate limits of a 33 city within the county may vote on the proposition to 34 increase property taxes for the rural services fund in 35 excess of the statutory limit. 36 4. The amount of additional property tax dollars 37 certified under this section shall not be included in 38 the computation of the maximum amount of property tax 39 dollars which may be certified and levied under section 40 331.423. 41 Sec. 30. Section 331.424A, subsection 4, Code 42 Supplement 2011, is amended to read as follows: 43 4. For the fiscal year beginning July 1, 1996, 44 and for each subsequent fiscal year, the county shall 45 certify a levy for payment of services. For each 46 fiscal year, county revenues from taxes imposed by the 47 county credited to the services fund shall not exceed 48 an amount equal to the amount of base year expenditures 49 for services as defined in section 331.438 , less the 50 -20- SF2344.6158 (3) 84 md/sc 20/ 39
amount of property tax relief to be received pursuant 1 to section 426B.2 , in the fiscal year for which the 2 budget is certified. The county auditor and the 3 board of supervisors shall reduce the amount of the 4 levy certified for the services fund by the amount of 5 property tax relief to be received. A levy certified 6 under this section is not subject to the appeal 7 provisions of section 331.426 or to any other provision 8 in law authorizing a county to exceed, increase, or 9 appeal a property tax levy limit. 10 Sec. 31. Section 331.427, subsection 3, paragraph 11 l, Code 2011, is amended to read as follows: 12 l. Services listed in section 331.424, subsection 13 1 , Code 2011, and section 331.554 . 14 Sec. 32. Section 331.428, subsection 2, paragraph 15 d, Code 2011, is amended to read as follows: 16 d. Services listed under section 331.424, 17 subsection 2 , Code 2011 . 18 Sec. 33. Section 331.434, subsection 1, Code 2011, 19 is amended to read as follows: 20 1. The budget shall show the amount required for 21 each class of proposed expenditures, a comparison of 22 the amounts proposed to be expended with the amounts 23 expended for like purposes for the two preceding years, 24 the revenues from sources other than property taxation, 25 and the amount to be raised by property taxation, in 26 the detail and form prescribed by the director of the 27 department of management. For each county that has 28 established an urban renewal area, the budget shall 29 include estimated and actual tax increment financing 30 revenues and all estimated and actual expenditures of 31 the revenues, proceeds from debt and all estimated 32 and actual expenditures of the debt proceeds, and 33 identification of any entity receiving a direct payment 34 of taxes funded by tax increment financing revenues 35 and shall include the total amount of loans, advances, 36 indebtedness, or bonds outstanding at the close of 37 the most recently ended fiscal year, which qualify 38 for payment from the special fund created in section 39 403.19 , including interest negotiated on such loans, 40 advances, indebtedness, or bonds. For purposes of this 41 subsection , “indebtedness” includes written agreements 42 whereby the county agrees to suspend, abate, exempt, 43 rebate, refund, or reimburse property taxes, provide a 44 grant for property taxes paid, or make a direct payment 45 of taxes, with moneys in the special fund. The amount 46 of loans, advances, indebtedness, or bonds shall be 47 listed in the aggregate for each county reporting. The 48 county finance committee, in consultation with the 49 department of management and the legislative services 50 -21- SF2344.6158 (3) 84 md/sc 21/ 39
agency, shall determine reporting criteria and shall 1 prepare a form for reports filed with the department 2 pursuant to this section . The department shall make 3 the information available by electronic means. 4 Sec. 34. Section 373.10, Code 2011, is amended to 5 read as follows: 6 373.10 Taxing authority. 7 The metropolitan council shall have the authority 8 to levy city taxes to the extent the city tax levy 9 authority is transferred by the charter to the 10 metropolitan council. A member city shall transfer 11 a portion of the city’s tax levy authorized under 12 section 384.1 or 384.12 , whichever is applicable, to 13 the metropolitan council. The maximum rates amount of 14 taxes authorized to be levied under sections section 15 384.1 and the taxes authorized to be levied under 16 section 17 384.12 by a member city shall be reduced by an amount 18 equal to the rates of the same or similar taxes levied 19 in the city by the metropolitan council. 20 Sec. 35. Section 384.1, Code 2011, is amended by 21 striking the section and inserting in lieu thereof the 22 following: 23 384.1 Property tax dollars —— maximums. 24 1. A city shall certify taxes to be levied by the 25 city on all taxable property within the city limits, 26 for all city government purposes. Annually, the city 27 council may certify basic levies for city government 28 purposes, subject to the limitation on property tax 29 dollars provided in this section. 30 2. For purposes of this section and section 384.1B, 31 unless the context otherwise requires: 32 a. “Annual growth factor” means an index, expressed 33 as a percentage, determined by the department of 34 management by January 1 of the calendar year in which 35 the budget year begins. In determining the annual 36 growth factor, the department shall calculate the 37 average of the preceding twelve-month percentage 38 change, which shall be computed on a monthly basis, 39 in the midwest consumer price index, ending with the 40 percentage change for the month of November. The 41 department shall then add that average percentage 42 change to one hundred percent. In no case, however, 43 shall the annual growth factor exceed one hundred four 44 percent. 45 b. “Boundary adjustment” means annexation, 46 severance, incorporation, or discontinuance as those 47 terms are defined in section 368.1. 48 c. “Budget year” is the fiscal year beginning 49 during the calendar year in which a budget is 50 -22- SF2344.6158 (3) 84 md/sc 22/ 39
certified. 1 d. “Current fiscal year” is the fiscal year 2 ending during the calendar year in which a budget is 3 certified. 4 e. “Net new valuation taxes” means the amount of 5 property tax dollars equal to the current fiscal year’s 6 levy rate in the city for the general fund multiplied 7 by the increase from the current fiscal year to the 8 budget year in taxable valuation due to the following: 9 (1) Net new construction, excluding all incremental 10 valuation that is released in any one year from either 11 a division of revenue under section 260E.4 or an urban 12 renewal area for which taxes were being divided under 13 section 403.19 if the property for the valuation being 14 released remains subject to the division of revenue 15 under section 260E.4 or remains part of the urban 16 renewal area that is subject to a division of revenue 17 under section 403.19. 18 (2) Additions or improvements to existing 19 structures. 20 (3) Remodeling of existing structures for which a 21 building permit is required. 22 (4) Net boundary adjustment. 23 (5) A municipality no longer dividing tax revenues 24 in an urban renewal area as provided in section 403.19 25 or a community college no longer dividing revenues as 26 provided in section 260E.4. 27 (6) That portion of taxable property located in an 28 urban revitalization area on which an exemption was 29 allowed and such exemption has expired. 30 3. a. For the fiscal year beginning July 1, 2013, 31 and subsequent fiscal years, the maximum amount of 32 property tax dollars which may be certified for levy 33 by a city for the general fund shall be the maximum 34 property tax dollars calculated under paragraph “b” . 35 b. The maximum property tax dollars that may be 36 levied for deposit in the general fund is an amount 37 equal to the sum of the following: 38 (1) The annual growth factor times the current 39 fiscal year’s maximum property tax dollars for the 40 general fund. 41 (2) The amount of net new valuation taxes in the 42 city. 43 4. For purposes of calculating maximum property tax 44 dollars for the city general fund for the fiscal year 45 beginning July 1, 2013, only, the term “current fiscal 46 year’s maximum property tax dollars” shall mean the 47 total amount of property tax dollars certified by the 48 city for the city’s general fund for the fiscal year 49 beginning July 1, 2012. 50 -23- SF2344.6158 (3) 84 md/sc 23/ 39
5. Property taxes certified for deposit in the 1 debt service fund in section 384.4, trust and agency 2 funds in section 384.6, capital improvements reserve 3 fund in section 384.7, the emergency fund in section 4 384.8, any capital projects fund established by the 5 city for deposit of bond, loan, or note proceeds, 6 any temporary increase approved pursuant to section 7 384.12A, property taxes collected from a voted levy 8 in section 384.12, and property taxes levied under 9 section 384.12, subsection 18, are not counted against 10 the maximum amount of property tax dollars that may be 11 certified for a fiscal year under subsection 3. 12 6. Notwithstanding the maximum amount of taxes 13 a city may certify for levy, the tax levied by a 14 city on tracts of land and improvements on the 15 tracts of land used and assessed for agricultural or 16 horticultural purposes shall not exceed three dollars 17 and three-eighths cents per thousand dollars of 18 assessed value in any year. Improvements located on 19 such tracts of land and not used for agricultural or 20 horticultural purposes and all residential dwellings 21 are subject to the same rate of tax levied by the city 22 on all other taxable property within the city. 23 7. The department of management, in consultation 24 with the city finance committee, shall adopt rules 25 to administer this section. The department shall 26 prescribe forms to be used by cities when making 27 calculations required by this section. 28 Sec. 36. NEW SECTION . 384.1B Ending fund balance. 29 1. a. Budgeted ending fund balances for a budget 30 year in excess of twenty-five percent of budgeted 31 expenditures from the general fund for that budget 32 year shall be explicitly reserved or designated for a 33 specific purpose. 34 b. A city is encouraged, but not required, to 35 reduce ending fund balances for the budget year to 36 an amount equal to approximately twenty-five percent 37 of budgeted expenditures and transfers from the 38 general fund for that budget year unless a decision 39 is certified by the state appeal board ordering a 40 reduction in the ending fund balance of the fund. 41 c. In a protest to the city budget under section 42 384.19, the city shall have the burden of proving 43 that the budgeted balances in excess of twenty-five 44 percent are reasonably likely to be appropriated for 45 the explicitly reserved or designated specific purpose. 46 The excess budgeted balance for the specific purpose 47 shall be considered an increase in an item in the 48 budget for purposes of section 24.28. 49 2. a. For a city that has, as of June 30, 50 -24- SF2344.6158 (3) 84 md/sc 24/ 39
2012, reduced its ending fund balance to less than 1 twenty-five percent of actual expenditures, additional 2 property taxes may be computed and levied as provided 3 in this subsection. The additional property tax levy 4 amount is an amount not to exceed the difference 5 between twenty-five percent of actual expenditures for 6 city government purposes for the fiscal year beginning 7 July 1, 2011, minus the ending fund balance for that 8 year. 9 b. All or a portion of additional property tax 10 dollars may be levied for the purpose of increasing 11 cash reserves for city government purposes in the 12 budget year. The additional property tax dollars 13 authorized under this subsection but not levied may be 14 carried forward as unused ending fund balance taxing 15 authority until and for the fiscal year beginning 16 July 1, 2018. The amount carried forward shall not 17 exceed twenty-five percent of the maximum amount of 18 property tax dollars available in the current fiscal 19 year. Additionally, property taxes that are levied 20 as unused ending fund balance taxing authority under 21 this subsection may be the subject of a protest under 22 section 384.19, and the amount will be considered an 23 increase in an item in the budget for purposes of 24 section 24.28. The amount of additional property tax 25 dollars levied under this subsection shall not be 26 included in the computation of the maximum amount of 27 property tax dollars which may be certified and levied 28 under section 384.1. 29 Sec. 37. Section 384.12, subsection 20, Code 2011, 30 is amended by striking the subsection. 31 Sec. 38. NEW SECTION . 384.12A Authority to levy 32 beyond maximum property tax dollars. 33 1. The city council may certify additions to the 34 maximum amount of property tax dollars to be levied 35 for a period of time not to exceed two years if the 36 proposition has been submitted at a special election 37 and received a favorable majority of the votes cast on 38 the proposition. 39 2. The special election is subject to the 40 following: 41 a. The city council must give at least thirty-two 42 days’ notice to the county commissioner of elections 43 that the special election is to be held. In no 44 case, however, shall a notice be given to the county 45 commissioner of elections after December 31 for an 46 election on a proposition to exceed the statutory 47 limits during the fiscal year beginning in the next 48 calendar year. 49 b. The special election shall be conducted by the 50 -25- SF2344.6158 (3) 84 md/sc 25/ 39
county commissioner of elections in accordance with 1 law. 2 c. The proposition to be submitted shall be 3 substantially in the following form: 4 Vote “yes” or “no” on the following: Shall the city 5 of _______ levy for an additional $_______ each year 6 for ___ years beginning next July 1, ____, in excess of 7 the statutory limits otherwise applicable for the city 8 general fund? 9 d. The canvass shall be held beginning at 1:00 p.m. 10 on the second day which is not a holiday following the 11 special election. 12 e. Notice of the special election shall be 13 published at least once in a newspaper as specified 14 in section 362.3 prior to the date of the special 15 election. The notice shall appear as early as 16 practicable after the city council has voted to submit 17 a proposition to the voters to levy additional property 18 tax dollars. 19 3. The amount of additional property tax dollars 20 certified under this section shall not be included in 21 the computation of the maximum amount of property tax 22 dollars which may be certified and levied under section 23 384.1. 24 Sec. 39. Section 384.16, subsection 1, paragraph b, 25 Code 2011, is amended to read as follows: 26 b. A budget must show comparisons between the 27 estimated expenditures in each program in the following 28 year, the latest estimated expenditures in each program 29 in the current year, and the actual expenditures in 30 each program from the annual report as provided in 31 section 384.22 , or as corrected by a subsequent audit 32 report. Wherever practicable, as provided in rules 33 of the committee, a budget must show comparisons 34 between the levels of service provided by each program 35 as estimated for the following year, and actual 36 levels of service provided by each program during 37 the two preceding years. For each city that has 38 established an urban renewal area, the budget shall 39 include estimated and actual tax increment financing 40 revenues and all estimated and actual expenditures of 41 the revenues, proceeds from debt and all estimated 42 and actual expenditures of the debt proceeds, and 43 identification of any entity receiving a direct payment 44 of taxes funded by tax increment financing revenues 45 and shall include the total amount of loans, advances, 46 indebtedness, or bonds outstanding at the close of 47 the most recently ended fiscal year, which qualify 48 for payment from the special fund created in section 49 403.19 , including interest negotiated on such loans, 50 -26- SF2344.6158 (3) 84 md/sc 26/ 39
advances, indebtedness, or bonds. The amount of loans, 1 advances, indebtedness, or bonds shall be listed in the 2 aggregate for each city reporting. The city finance 3 committee, in consultation with the department of 4 management and the legislative services agency, shall 5 determine reporting criteria and shall prepare a form 6 for reports filed with the department pursuant to this 7 section . The department shall make the information 8 available by electronic means. 9 Sec. 40. Section 384.19, Code 2011, is amended by 10 adding the following new unnumbered paragraph: 11 NEW UNNUMBERED PARAGRAPH . For purposes of a tax 12 protest filed under this section, “item” means a 13 budgeted expenditure, appropriation, or cash reserve 14 from a fund for a service area, program, program 15 element, or purpose. 16 Sec. 41. Section 386.8, Code 2011, is amended to 17 read as follows: 18 386.8 Operation tax. 19 A city may establish a self-supported improvement 20 district operation fund, and may certify taxes not 21 to exceed the rate limitation as established in the 22 ordinance creating the district, or any amendment 23 thereto, each year to be levied for the fund against 24 all of the property in the district, for the purpose 25 of paying the administrative expenses of the district, 26 which may include but are not limited to administrative 27 personnel salaries, a separate administrative office, 28 planning costs including consultation fees, engineering 29 fees, architectural fees, and legal fees and all other 30 expenses reasonably associated with the administration 31 of the district and the fulfilling of the purposes of 32 the district. The taxes levied for this fund may also 33 be used for the purpose of paying maintenance expenses 34 of improvements or self-liquidating improvements for a 35 specified length of time with one or more options to 36 renew if such is clearly stated in the petition which 37 requests the council to authorize construction of the 38 improvement or self-liquidating improvement, whether 39 or not such petition is combined with the petition 40 requesting creation of a district. Parcels of property 41 which are assessed as residential property for property 42 tax purposes are exempt from the tax levied under this 43 section except residential properties within a duly 44 designated historic district. A tax levied under 45 this section is not subject to the levy limitation in 46 section 384.1 . 47 Sec. 42. Section 386.9, Code 2011, is amended to 48 read as follows: 49 386.9 Capital improvement tax. 50 -27- SF2344.6158 (3) 84 md/sc 27/ 39
A city may establish a capital improvement fund 1 for a district and may certify taxes, not to exceed 2 the rate established by the ordinance creating the 3 district, or any subsequent amendment thereto, 4 each year to be levied for the fund against all of 5 the property in the district, for the purpose of 6 accumulating moneys for the financing or payment 7 of a part or all of the costs of any improvement or 8 self-liquidating improvement. However, parcels of 9 property which are assessed as residential property 10 for property tax purposes are exempt from the tax 11 levied under this section except residential properties 12 within a duly designated historic district. A tax 13 levied under this section is not subject to the levy 14 limitations in section 384.1 or 384.7 . 15 Sec. 43. REPEAL. Sections 331.425 and 331.426, 16 Code 2011, are repealed. 17 Sec. 44. APPLICABILITY. This division of this Act 18 applies to fiscal years beginning on or after July 1, 19 2013. 20 DIVISION V 21 BUSINESS PROPERTY TAX CREDIT 22 Sec. 45. Section 331.512, Code 2011, is amended by 23 adding the following new subsection: 24 NEW SUBSECTION . 13B. Carry out duties relating to 25 the business property tax credit as provided in chapter 26 426C. 27 Sec. 46. Section 331.559, Code 2011, is amended by 28 adding the following new subsection: 29 NEW SUBSECTION . 14A. Carry out duties relating to 30 the business property tax credit as provided in chapter 31 426C. 32 Sec. 47. NEW SECTION . 426C.1 Definitions. 33 For the purposes of this chapter, unless the context 34 otherwise requires: 35 1. “Contiguous parcels” means any of the following: 36 a. Parcels that share a common boundary. 37 b. Parcels within the same building or structure 38 regardless of whether the parcels share a common 39 boundary. 40 c. Permanent improvements to the land that are 41 situated on one or more parcels of land that are 42 assessed and taxed separately from the permanent 43 improvements if the parcels of land upon which the 44 permanent improvements are situated share a common 45 boundary. 46 2. “Department” means the department of revenue. 47 3. “Fund” means the business property tax credit 48 fund created in section 426C.2. 49 4. “Parcel” means as defined in section 445.1. 50 -28- SF2344.6158 (3) 84 md/sc 28/ 39
5. “Property unit” means contiguous parcels all of 1 which are located within the same county, with the same 2 property tax classification, each of which contains 3 permanent improvements, are owned by the same person, 4 and are operated by that person for a common use and 5 purpose. 6 Sec. 48. NEW SECTION . 426C.2 Business property tax 7 credit fund —— appropriation. 8 1. A business property tax credit fund is created 9 in the state treasury under the authority of the 10 department. For the fiscal year beginning July 1, 11 2014, there is appropriated from the general fund of 12 the state to the department to be credited to the 13 fund, the sum of twenty-four million dollars to be 14 used for business property tax credits authorized in 15 this chapter. For the fiscal year beginning July 1, 16 2015, there is appropriated from the general fund of 17 the state to the department to be credited to the fund, 18 the sum of forty-eight million dollars. For the fiscal 19 year beginning July 1, 2016, there is appropriated from 20 the general fund of the state to the department to be 21 credited to the fund, the sum of seventy-two million 22 dollars. For the fiscal year beginning July 1, 2017, 23 there is appropriated from the general fund of the 24 state to the department to be credited to the fund, 25 the sum of ninety-six million dollars. For the fiscal 26 year beginning July 1, 2018, and each fiscal year 27 thereafter, there is appropriated from the general fund 28 of the state to the department to be credited to the 29 fund, the sum of one hundred twenty million dollars. 30 2. Notwithstanding section 12C.7, subsection 2, 31 interest or earnings on moneys deposited in the fund 32 shall be credited to the fund. Moneys in the fund are 33 not subject to the provisions of section 8.33 and shall 34 not be transferred, used, obligated, appropriated, 35 or otherwise encumbered except as provided in this 36 chapter. 37 Sec. 49. NEW SECTION . 426C.3 Claims for credit. 38 1. Each person who wishes to claim the credit 39 allowed under this chapter shall obtain the appropriate 40 forms from the assessor and file the claim with the 41 assessor. The director of revenue shall prescribe 42 suitable forms and instructions for such claims, and 43 make such forms and instructions available to the 44 assessors. 45 2. a. Claims for the business property tax credit 46 shall be filed not later than March 15 preceding the 47 fiscal year during which the taxes for which the credit 48 is claimed are due and payable. 49 b. A claim filed after the deadline for filing 50 -29- SF2344.6158 (3) 84 md/sc 29/ 39
claims shall be considered as a claim for the following 1 year. 2 3. Upon the filing of a claim and allowance of the 3 credit, the credit shall be allowed on the parcel or 4 property unit for successive years without further 5 filing as long as the parcel or property unit satisfies 6 the requirements for the credit. If the parcel or 7 property unit owner ceases to qualify for the credit 8 under this chapter, the owner shall provide written 9 notice to the assessor by the date for filing claims 10 specified in subsection 2 following the date on which 11 the parcel or property unit ceases to qualify for the 12 credit. 13 4. When all or a portion of a parcel or property 14 unit that is allowed a credit under this chapter is 15 sold, transferred, or ownership otherwise changes, the 16 buyer, transferee, or new owner who wishes to receive 17 the credit shall refile the claim for credit. In 18 addition, when a portion of a parcel or property unit 19 that is allowed a credit under this chapter is sold, 20 transferred, or ownership otherwise changes, the owner 21 of the portion of the parcel or property unit for which 22 ownership did not change shall refile the claim for 23 credit. 24 5. The assessor shall remit the claims for 25 credit to the county auditor with the assessor’s 26 recommendation for allowance or disallowance. If 27 the assessor recommends disallowance of a claim, 28 the assessor shall submit the reasons for the 29 recommendation, in writing, to the county auditor. The 30 county auditor shall forward the claims to the board 31 of supervisors. The board shall allow or disallow the 32 claims. 33 6. For each claim and allowance of a credit for 34 a property unit, the county auditor shall calculate 35 the average of all consolidated levy rates applicable 36 to the several parcels within the property unit. All 37 claims for credit which have been allowed by the board 38 of supervisors, the actual value of the permanent 39 improvements to such parcels and property units 40 applicable to the fiscal year for which the credit is 41 claimed that are subject to assessment and taxation 42 prior to imposition of any applicable assessment 43 limitation, the consolidated levy rates for such 44 parcels and the average consolidated levy rates for 45 such property units applicable to the fiscal year for 46 which the credit is claimed, and the taxing districts 47 in which the parcel or property unit is located, shall 48 be certified on or before June 30, in each year, by the 49 county auditor to the department. 50 -30- SF2344.6158 (3) 84 md/sc 30/ 39
7. The assessor shall maintain a permanent file of 1 current business property tax credits. The assessor 2 shall file a notice of transfer of property for which a 3 credit has been allowed when notice is received from 4 the office of the county recorder, from the person 5 who sold or transferred the property, or from the 6 personal representative of a deceased property owner. 7 The county recorder shall give notice to the assessor 8 of each transfer of title filed in the recorder’s 9 office. The notice from the county recorder shall 10 describe the property transferred, the name of the 11 person transferring title to the property, and the name 12 of the person to whom title to the property has been 13 transferred. 14 Sec. 50. NEW SECTION . 426C.4 Eligibility and 15 amount of credit. 16 1. Each parcel classified and taxed as commercial 17 property, industrial property, or railway property 18 under chapter 434, and improved with permanent 19 construction, is eligible for a credit under this 20 chapter. A person may claim and receive one credit 21 under this chapter for each eligible parcel unless 22 the parcel is part of a property unit. A person 23 may only claim and receive one credit under this 24 chapter for each property unit. A credit approved 25 for a property unit shall be allocated to the several 26 parcels within the property unit in the proportion 27 that each parcel’s total amount of property taxes due 28 and payable attributable to the permanent improvements 29 bears to the total amount of property taxes due and 30 payable attributable to the permanent improvements for 31 the property unit. Only property units comprised of 32 commercial property, comprised of industrial property, 33 or comprised of railway property under chapter 434 are 34 eligible for a credit under this chapter. 35 2. Using the actual value of the permanent 36 improvements and the consolidated levy rate for each 37 parcel or the average consolidated levy rate for each 38 property unit, as certified by the county auditor 39 to the department under section 426C.3, subsection 40 6, the department shall calculate, for each fiscal 41 year, an initial amount of actual value of permanent 42 improvements for use in determining the amount of the 43 credit for each such parcel or property unit so as 44 to provide the maximum possible credit according to 45 the credit formula and limitations under subsection 46 3, and to provide a total dollar amount of credits 47 against the taxes due and payable in the fiscal year 48 equal to ninety-eight percent of the moneys in the fund 49 following the deposit of the appropriation for the 50 -31- SF2344.6158 (3) 84 md/sc 31/ 39
fiscal year. 1 3. a. The amount of the credit for each parcel or 2 property unit for which a claim for credit under this 3 chapter has been approved shall be calculated under 4 paragraph “b” using the lesser of the initial amount of 5 actual value of the permanent improvements determined 6 by the department under subsection 2, and the actual 7 value of the permanent improvements to the parcel or 8 property unit as certified by the county auditor under 9 section 426C.3, subsection 6. 10 b. The amount of the credit for each parcel or 11 property unit for which a claim for credit under 12 this chapter has been approved shall be equal to the 13 amount of actual value determined under paragraph “a” 14 multiplied by the difference, stated as a percentage, 15 between the assessment limitation applicable to 16 the parcel or property unit under section 441.21, 17 subsection 5, and the assessment limitation applicable 18 to residential property under section 441.21, 19 subsection 4, divided by one thousand dollars, and then 20 multiplied by the consolidated levy rate or average 21 consolidated levy rate for one thousand dollars of 22 taxable value applicable to the parcel or property unit 23 for the fiscal year for which the credit is claimed as 24 certified by the county auditor under section 426C.3, 25 subsection 6. 26 Sec. 51. NEW SECTION . 426C.5 Payment to counties. 27 1. Annually the department shall certify to the 28 county auditor of each county the amounts of the 29 business property tax credits allowed in the county. 30 Each county auditor shall then enter the credits 31 against the tax levied on each eligible parcel or 32 property unit in the county, designating on the tax 33 lists the credit as being from the fund. Each taxing 34 district shall receive its share of the business 35 property tax credit allowed on each eligible parcel 36 or property unit in such taxing district, in the 37 proportion that the levy made by such taxing district 38 upon the parcel or property unit bears to the total 39 levy upon the parcel or property unit by all taxing 40 districts imposing a property tax in such taxing 41 district. However, the several taxing districts 42 shall not draw the moneys so credited until after the 43 semiannual allocations have been received by the county 44 treasurer, as provided in this section. Each county 45 treasurer shall show on each tax receipt the amount of 46 credit received from the fund. 47 2. The director of the department of administrative 48 services shall issue warrants on the fund payable to 49 the county treasurers of the several counties of the 50 -32- SF2344.6158 (3) 84 md/sc 32/ 39
state under this chapter. 1 3. The amount due each county shall be paid in two 2 payments on November 15 and March 15 of each fiscal 3 year, drawn upon warrants payable to the respective 4 county treasurers. The two payments shall be as nearly 5 equal as possible. 6 Sec. 52. NEW SECTION . 426C.6 Appeals. 7 1. If the board of supervisors disallows a claim 8 for credit under section 426C.3, subsection 5, the 9 board of supervisors shall send written notice, by 10 mail, to the claimant at the claimant’s last known 11 address. The notice shall state the reasons for 12 disallowing the claim for the credit. The board of 13 supervisors is not required to send notice that a claim 14 for credit is disallowed if the claimant voluntarily 15 withdraws the claim. Any person whose claim is denied 16 under the provisions of this chapter may appeal from 17 the action of the board of supervisors to the district 18 court of the county in which the parcel or property 19 unit is located by giving written notice of such appeal 20 to the county auditor within twenty days from the date 21 of mailing of notice of such action by the board of 22 supervisors. 23 2. If any claim for credit has been denied by the 24 board of supervisors, and such action is subsequently 25 reversed on appeal, the credit shall be allowed on the 26 applicable parcel or property unit, and the director of 27 revenue, the county auditor, and the county treasurer 28 shall provide the credit and change their books and 29 records accordingly. In the event the appealing 30 taxpayer has paid one or both of the installments of 31 the tax payable in the year or years in question, 32 remittance shall be made to such taxpayer of the amount 33 of such credit. The amount of such credit awarded on 34 appeal shall be allocated and paid from the balance 35 remaining in the fund. 36 Sec. 53. NEW SECTION . 426C.7 Audit —— denial. 37 1. If on the audit of a credit provided under this 38 chapter, the director of revenue determines the amount 39 of the credit to have been incorrectly calculated or 40 that the credit is not allowable, the director shall 41 recalculate the credit and notify the taxpayer and the 42 county auditor of the recalculation or denial and the 43 reasons for it. The director shall not adjust a credit 44 after three years from October 31 of the year in which 45 the claim for the credit was filed. If the credit has 46 been paid, the director shall give notification to the 47 taxpayer, the county treasurer, and the applicable 48 assessor of the recalculation or denial of the credit 49 and the county treasurer shall proceed to collect the 50 -33- SF2344.6158 (3) 84 md/sc 33/ 39
tax owed in the same manner as other property taxes due 1 and payable are collected, if the parcel or property 2 unit for which the credit was allowed is still owned 3 by the taxpayer. If the parcel or property unit 4 for which the credit was allowed is not owned by the 5 taxpayer, the amount may be recovered from the taxpayer 6 by assessment in the same manner that income taxes are 7 assessed under sections 422.26 and 422.30. The amount 8 of such erroneous credit, when collected, shall be 9 deposited in the fund. 10 2. The taxpayer or board of supervisors may 11 appeal any decision of the director of revenue to the 12 state board of tax review pursuant to section 421.1, 13 subsection 5. The taxpayer, the board of supervisors, 14 or the director of revenue may seek judicial review 15 of the action of the state board of tax review in 16 accordance with chapter 17A. 17 Sec. 54. NEW SECTION . 426C.8 False claim —— 18 penalty. 19 A person who makes a false claim for the purpose of 20 obtaining a credit provided for in this chapter or who 21 knowingly receives the credit without being legally 22 entitled to it is guilty of a fraudulent practice. The 23 claim for a credit of such a person shall be disallowed 24 and if the credit has been paid the amount shall be 25 recovered in the manner provided in section 426C.7. In 26 such cases, the director of revenue shall send a notice 27 of disallowance of the credit. 28 Sec. 55. NEW SECTION . 426C.9 Rules. 29 The director of revenue shall prescribe forms, 30 instructions, and rules pursuant to chapter 17A, as 31 necessary, to carry out the purposes of this chapter. 32 Sec. 56. APPLICABILITY. This division of this Act 33 applies to property taxes due and payable in fiscal 34 years beginning on or after July 1, 2014. 35 DIVISION VI 36 MULTIRESIDENTIAL PROPERTY CLASSIFICATION 37 Sec. 57. Section 404.2, subsection 2, paragraph f, 38 Code 2011, is amended to read as follows: 39 f. A statement specifying whether the 40 revitalization is applicable to none, some, or all of 41 the property assessed as residential, multiresidential, 42 agricultural, commercial , or industrial property 43 within the designated area or a combination thereof and 44 whether the revitalization is for rehabilitation and 45 additions to existing buildings or new construction or 46 both. If revitalization is made applicable only to 47 some property within an assessment classification, the 48 definition of that subset of eligible property must 49 be by uniform criteria which further some planning 50 -34- SF2344.6158 (3) 84 md/sc 34/ 39
objective identified in the plan. The city shall state 1 how long it is estimated that the area shall remain 2 a designated revitalization area which time shall 3 be longer than one year from the date of designation 4 and shall state any plan by the city to issue revenue 5 bonds for revitalization projects within the area. For 6 a county, a revitalization area shall include only 7 property which will be used as industrial property, 8 commercial property, commercial property consisting of 9 three or more separate living quarters with at least 10 seventy-five percent of the space used for residential 11 purposes, multiresidential property, or residential 12 property. However, a county shall not provide a tax 13 exemption under this chapter to commercial property, 14 commercial property consisting of three or more 15 separate living quarters with at least seventy-five 16 percent of the space used for residential purposes, 17 multiresidential property, or residential property 18 which is located within the limits of a city. 19 Sec. 58. Section 404.3, subsection 4, Code 2011, is 20 amended to read as follows: 21 4. All qualified real estate assessed as 22 residential property or assessed as commercial 23 property, if the commercial property consists of 24 three or more separate living quarters with at least 25 seventy-five percent of the space used for residential 26 purposes, or assessed as multiresidential property is 27 eligible to receive a one hundred percent exemption 28 from taxation on the actual value added by the 29 improvements. The exemption is for a period of ten 30 years. 31 Sec. 59. Section 441.21, subsection 8, paragraph b, 32 Code Supplement 2011, is amended to read as follows: 33 b. Notwithstanding paragraph “a” , any construction 34 or installation of a solar energy system on property 35 classified as agricultural, residential, commercial, 36 multiresidential, or industrial property shall not 37 increase the actual, assessed , and taxable values of 38 the property for five full assessment years. 39 Sec. 60. Section 441.21, subsections 9 and 10, Code 40 Supplement 2011, are amended to read as follows: 41 9. Not later than November 1, 1979, and November 42 1 of each subsequent year, the director shall 43 certify to the county auditor of each county the 44 percentages of actual value at which residential 45 property, agricultural property, commercial property, 46 industrial property, multiresidential property, and 47 property valued by the department of revenue pursuant 48 to chapters 428 , 433 , 434 , 437 , and 438 in each 49 assessing jurisdiction in the county shall be assessed 50 -35- SF2344.6158 (3) 84 md/sc 35/ 39
for taxation. The county auditor shall proceed 1 to determine the assessed values of agricultural 2 property, residential property, commercial property, 3 industrial property, multiresidential property, and 4 property valued by the department of revenue pursuant 5 to chapters 428 , 433 , 434 , 437 , and 438 by applying 6 such percentages to the current actual value of such 7 property, as reported to the county auditor by the 8 assessor, and the assessed values so determined shall 9 be the taxable values of such properties upon which the 10 levy shall be made. 11 10. The percentage of actual value computed by 12 the director for agricultural property, residential 13 property, commercial property, industrial property , 14 multiresidential property, and property valued by the 15 department of revenue pursuant to chapters 428 , 433 , 16 434 , 437 , and 438 and used to determine assessed values 17 of those classes of property does not constitute a rule 18 as defined in section 17A.2, subsection 11 . 19 Sec. 61. Section 441.21, Code Supplement 2011, is 20 amended by adding the following new subsection: 21 NEW SUBSECTION . 13. a. Beginning with valuations 22 established on or after January 1, 2013, mobile home 23 parks, manufactured home communities, land-leased 24 communities, assisted living facilities, and that 25 portion of a building that is used for human habitation 26 and a proportionate share of the land upon which 27 the building is situated, even if the use for human 28 habitation is not the primary use of the building, and 29 regardless of the number of dwelling units located 30 in the building, and not otherwise classified as 31 residential property, shall be valued as a separate 32 class of property known as multiresidential property 33 and, excluding properties referred to in section 34 427A.1, subsection 8, shall be assessed at a percentage 35 of its actual value, as determined in this subsection. 36 For valuations established for the assessment year 37 beginning January 1, 2013, the percentage of actual 38 value as equalized by the director of revenue as 39 provided in section 441.49 at which multiresidential 40 property shall be assessed shall be ninety percent. 41 For valuations established for the assessment year 42 beginning January 1, 2014, the percentage of actual 43 value as equalized by the director of revenue as 44 provided in section 441.49 at which multiresidential 45 property shall be assessed shall be eighty percent. 46 For valuations established for the assessment year 47 beginning January 1, 2015, the percentage of actual 48 value as equalized by the director of revenue as 49 provided in section 441.49 at which multiresidential 50 -36- SF2344.6158 (3) 84 md/sc 36/ 39
property shall be assessed shall be seventy percent. 1 For valuations established for the assessment year 2 beginning January 1, 2016, the percentage of actual 3 value as equalized by the director of revenue as 4 provided in section 441.49 at which multiresidential 5 property shall be assessed shall be sixty percent. 6 For valuations established for the assessment year 7 beginning January 1, 2017, and each assessment year 8 thereafter, the percentage of actual value as equalized 9 by the director of revenue as provided in section 10 441.49 at which multiresidential property shall be 11 assessed shall be equal to the percentage of actual 12 value at which property assessed as residential 13 property is assessed under subsection 4 for the same 14 assessment year. 15 b. Accordingly, the assessor may assign more than 16 one classification to a parcel of property that, in 17 part, satisfies the requirements of this subsection. 18 In no case, however, shall a hotel, motel, inn, or 19 other building where rooms or dwelling units are 20 usually rented for less than one month be classified as 21 multiresidential property under this subsection. 22 c. As used in this subsection: 23 (1) “Assisted living facility” means property for 24 providing assisted living as defined in section 231C.2. 25 (2) “Dwelling unit” means an apartment, group of 26 rooms, or single room which is occupied as separate 27 living quarters or, if vacant, is intended for 28 occupancy as separate living quarters, in which a 29 tenant can live and sleep separately from any other 30 persons in the building. 31 (3) “Land-leased community” means the same as 32 defined in sections 335.30A and 414.28A. 33 (4) “Manufactured home community” means the same as 34 a land-leased community. 35 (5) “Mobile home park” means the same as defined in 36 section 435.1. 37 Sec. 62. Section 558.46, subsection 5, Code 2011, 38 is amended to read as follows: 39 5. For the purposes of this section , “residential 40 property” includes commercial multiresidential property 41 as defined in section 441.21, subsection 13, consisting 42 of three or more separate living quarters with at least 43 seventy-five percent of the space used for residential 44 purposes. 45 Sec. 63. APPLICABILITY. This division of this 46 Act applies to assessment years beginning on or after 47 January 1, 2013. > 48 2. Title page, by striking lines 1 through 10 49 and inserting < An Act relating to taxation and local 50 -37- SF2344.6158 (3) 84 md/sc 37/ 39
government budgets by providing for an increase in the 1 amount of the earned income tax credit, establishing 2 and modifying property assessment limitations, 3 providing for certain property tax replacement 4 payments, modifying the assessment and taxation of 5 telecommunications company property, establishing 6 budget limitations for counties and cities, modifying 7 certain reporting requirements, establishing a property 8 tax credit for certain commercial, industrial, and 9 railway property, establishing a multiresidential 10 property classification, providing penalties, 11 making appropriations, and including effective date, 12 retroactive applicability, and other applicability 13 provisions. > 14 ______________________________ RANDY FEENSTRA ______________________________ JAMES F. HAHN ______________________________ STEVE KETTERING ______________________________ JONI ERNST ______________________________ BILL ANDERSON ______________________________ RICK BERTRAND ______________________________ KENT SORENSON ______________________________ DAVID JOHNSON ______________________________ HUBERT HOUSER -38- SF2344.6158 (3) 84 md/sc 38/ 39
______________________________ JAMES A. SEYMOUR ______________________________ BILL DIX ______________________________ TIM KAPUCIAN ______________________________ NANCY J. BOETTGER ______________________________ SHAWN HAMERLINCK ______________________________ JACK WHITVER ______________________________ ROBY SMITH ______________________________ MERLIN BARTZ ______________________________ SANDRA H. GREINER ______________________________ PAT WARD ______________________________ BRAD ZAUN -39- SF2344.6158 (3) 84 md/sc 39/ 39