Amend Senate File 2344 as follows:
   1.  By striking everything after the enacting clause and inserting: 

<DIVISION I

EARNED INCOME TAX CREDIT
   Section 1.  Section 422.12B, subsection 1, Code 2011, is amended to read as follows:
   1.  The taxes imposed under this division less the credits allowed under section 422.12 shall be reduced by an earned income credit equal to seven
 
ten percent of the federal earned income credit provided in section 32 of the Internal Revenue Code. Any credit in excess of the tax liability is refundable.
   Sec. 2.  RETROACTIVE APPLICABILITY.  This division of this Act applies retroactively to January 1, 2012, for tax years beginning on or after that date.

DIVISION II

PROPERTY TAX ASSESSMENT LIMITATIONS —— PROPERTY TAX REPLACEMENT
   Sec. 3.  Section 257.3, subsection 1, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  The amount paid to each school district for the commercial and industrial property tax replacement claim under section 441.21A shall be regarded as property tax. The portion of the payment which is foundation property tax shall be determined by applying the foundation property tax rate to the amount computed under section 441.21A, subsection 4, paragraph “a”, and such amount shall be prorated pursuant to section 441.21A, subsection 2, if applicable.
   Sec. 4.  Section 331.512, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  13A.  Carry out duties relating to the calculation and payment of commercial and industrial property tax replacement claims under section 441.21A.
   Sec. 5.  Section 331.559, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  25A.  Carry out duties relating to the calculation and payment of commercial and industrial property tax replacement claims under section 441.21A.
   Sec. 6.  Section 441.21, subsection 4, Code Supplement 2011, is amended to read as follows:
   4.  For valuations established as of January 1, 1979, the percentage of actual value at which agricultural and residential property shall be assessed shall be the quotient of the dividend and divisor as defined in this section. The dividend for each class of property shall be the dividend as determined for each class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, plus six percent of the amount so determined. However, if the difference between the dividend so determined for either class of property and the dividend for that class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, is less than six percent, the 1979 dividend for the other class of property shall be the dividend as determined for that class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, plus a percentage of the amount so determined which is equal to the percentage by which the dividend as determined for the other class of property for valuations established as of January 1, 1978, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1978, is increased in arriving at the 1979 dividend for the other class of property. The divisor for each class of property shall be the total actual value of all such property in the state in the preceding year, as reported by the assessors on the abstracts of assessment submitted for 1978, plus the amount of value added to said total actual value by the revaluation of existing properties in 1979 as equalized by the director of revenue pursuant to section 441.49. The director shall utilize information reported on abstracts of assessment submitted pursuant to section 441.45 in determining such percentage. For valuations established as of January 1, 1980, and each
 
assessment year thereafter
 
beginning before January 1, 2013, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which agricultural and residential property shall be assessed shall be calculated in accordance with the methods provided herein including the limitation of increases in agricultural and residential assessed values to the percentage increase of the other class of property if the other class increases less than the allowable limit adjusted to include the applicable and current values as equalized by the director of revenue, except that any references to six percent in this subsection shall be four percent.

For valuations established as of January 1, 2013, and each assessment year thereafter, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which agricultural and residential property shall be assessed shall be calculated in accordance with the methods provided herein including the limitation of increases in agricultural and residential assessed values to the percentage increase of the other class of property if the other class increases less than the allowable limit adjusted to include the applicable and current values as equalized by the director of revenue, except that any references to six percent in this subsection shall be three percent.
   Sec. 7.  Section 441.21, subsection 5, Code Supplement 2011, is amended to read as follows:
   5.
  a.  For valuations established as of January 1, 1979, commercial property and industrial property, excluding properties referred to in section 427A.1, subsection 8, shall be assessed as a percentage of the actual value of each class of property. The percentage shall be determined for each class of property by the director of revenue for the state in accordance with the provisions of this section. For valuations established as of January 1, 1979, the percentage shall be the quotient of the dividend and divisor as defined in this section. The dividend for each class of property shall be the total actual valuation for each class of property established for 1978, plus six percent of the amount so determined. The divisor for each class of property shall be the valuation for each class of property established for 1978, as reported by the assessors on the abstracts of assessment for 1978, plus the amount of value added to the total actual value by the revaluation of existing properties in 1979 as equalized by the director of revenue pursuant to section 441.49. For valuations established as of January 1, 1979, property valued by the department of revenue pursuant to chapters 428, 433, 437, and 438 shall be considered as one class of property and shall be assessed as a percentage of its actual value. The percentage shall be determined by the director of revenue in accordance with the provisions of this section. For valuations established as of January 1, 1979, the percentage shall be the quotient of the dividend and divisor as defined in this section. The dividend shall be the total actual valuation established for 1978 by the department of revenue, plus ten percent of the amount so determined. The divisor for property valued by the department of revenue pursuant to chapters 428, 433, 437, and 438 shall be the valuation established for 1978, plus the amount of value added to the total actual value by the revaluation of the property by the department of revenue as of January 1, 1979. For valuations established as of January 1, 1980, commercial property and industrial property, excluding properties referred to in section 427A.1, subsection 8, shall be assessed at a percentage of the actual value of each class of property. The percentage shall be determined for each class of property by the director of revenue for the state in accordance with the provisions of this section. For valuations established as of January 1, 1980, the percentage shall be the quotient of the dividend and divisor as defined in this section. The dividend for each class of property shall be the dividend as determined for each class of property for valuations established as of January 1, 1979, adjusted by the product obtained by multiplying the percentage determined for that year by the amount of any additions or deletions to actual value, excluding those resulting from the revaluation of existing properties, as reported by the assessors on the abstracts of assessment for 1979, plus four percent of the amount so determined. The divisor for each class of property shall be the total actual value of all such property in 1979, as equalized by the director of revenue pursuant to section 441.49, plus the amount of value added to the total actual value by the revaluation of existing properties in 1980. The director shall utilize information reported on the abstracts of assessment submitted pursuant to section 441.45 in determining such percentage. For valuations established as of January 1, 1980, property valued by the department of revenue pursuant to chapters 428, 433, 437, and 438 shall be assessed at a percentage of its actual value. The percentage shall be determined by the director of revenue in accordance with the provisions of this section. For valuations established as of January 1, 1980, the percentage shall be the quotient of the dividend and divisor as defined in this section. The dividend shall be the total actual valuation established for 1979 by the department of revenue, plus eight percent of the amount so determined. The divisor for property valued by the department of revenue pursuant to chapters 428, 433, 437, and 438 shall be the valuation established for 1979, plus the amount of value added to the total actual value by the revaluation of the property by the department of revenue as of January 1, 1980. For valuations established as of January 1, 1981, and each year thereafter, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which commercial property and industrial property, excluding properties referred to in section 427A.1, subsection 8, shall be assessed shall be calculated in accordance with the methods provided herein, except that any references to six percent in this subsection shall be four percent. For valuations established as of January 1, 1981, and each year thereafter, the percentage of actual value at which property valued by the department of revenue pursuant to chapters 428, 433, 437, and 438 shall be assessed shall be calculated in accordance with the methods provided herein, except that any references to ten percent in this subsection shall be eight percent. For assessment years beginning on or after January 1, 2013, but before January 1, 2019, the percentage of actual value at which property valued by the department of revenue pursuant to chapters 428, 433, 437, and 438 shall be assessed shall be calculated using property valuations for the applicable assessment years that include the total value of property exempt from taxation under section 433.4, subsection 2, paragraph “b”, if enacted in division III of this Act, notwithstanding section 433.4, subsection 2, paragraph “c”, if enacted in division III of this Act.
 
Beginning with valuations established as of January 1, 1979, and each
 
assessment year thereafter
 
beginning before January 1, 2013, property valued by the department of revenue pursuant to chapter 434 shall also be assessed at a percentage of its actual value which percentage shall be equal to the percentage determined by the director of revenue for commercial property, industrial property, or property valued by the department of revenue pursuant to chapters 428, 433, 437, and 438, whichever is lowest.

For valuations established on or after January 1, 2013, property valued by the department of revenue pursuant to chapter 434 shall be assessed at a percentage of its actual value equal to the percentage of actual value at which property assessed as commercial property is assessed for the same assessment year under paragraph “b”.
   b.  For valuations established on or after January 1, 2013, commercial property, excluding properties referred to in section 427A.1, subsection 8, shall be assessed as a percentage of its actual value, as determined in this paragraph “b”. For valuations established for the assessment year beginning January 1, 2013, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which commercial property shall be assessed shall be ninety-eight percent. For valuations established for the assessment year beginning January 1, 2014, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which commercial property shall be assessed shall be ninety-six percent. For valuations established for the assessment year beginning January 1, 2015, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which commercial property shall be assessed shall be ninety-four percent. For valuations established for the assessment year beginning January 1, 2016, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which commercial property shall be assessed shall be ninety-two percent. For valuations established for the assessment year beginning January 1, 2017, and each assessment year thereafter, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which commercial property shall be assessed shall be ninety percent.
   c.
  For valuations established on or after January 1, 2013, industrial property, excluding properties referred to in section 427A.1, subsection 8, shall be assessed as a percentage of its actual value, as determined in this paragraph “c”. For valuations established for the assessment year beginning January 1, 2013, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which industrial property shall be assessed shall be ninety-eight percent. For valuations established for the assessment year beginning January 1, 2014, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which industrial property shall be assessed shall be ninety-six percent. For valuations established for the assessment year beginning January 1, 2015, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which industrial property shall be assessed shall be ninety-four percent. For valuations established for the assessment year beginning January 1, 2016, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which industrial property shall be assessed shall be ninety-two percent. For valuations established for the assessment year beginning January 1, 2017, and each assessment year thereafter, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which industrial property shall be assessed shall be ninety percent.
   Sec. 8.  NEW SECTION.  441.21A  Commercial and industrial property tax replacement fund —— replacement claims.
   1.
  a.  The commercial and industrial property tax replacement fund is created in the state treasury under the control of the department of revenue for the payment of commercial and industrial property tax replacement claims in fiscal years beginning on or after July 1, 2014.
   b.  For the fiscal year beginning July 1, 2014, there is appropriated from the general fund of the state to the department of revenue to be credited to the fund an amount necessary to pay all commercial and industrial property tax replacement claims for the fiscal year, not to exceed twenty-eight million dollars. For the fiscal year beginning July 1, 2015, there is appropriated from the general fund of the state to the department of revenue to be credited to the fund an amount necessary to pay all commercial and industrial property tax replacement claims for the fiscal year, not to exceed fifty-six million dollars. For the fiscal year beginning July 1, 2016, there is appropriated from the general fund of the state to the department of revenue to be credited to the fund an amount necessary to pay all commercial and industrial property tax replacement claims for the fiscal year, not to exceed eighty-four million dollars. For the fiscal year beginning July 1, 2017, there is appropriated from the general fund of the state to the department of revenue to be credited to the fund an amount necessary to pay all commercial and industrial property tax replacement claims for the fiscal year, not to exceed one hundred twelve million dollars. For the fiscal year beginning July 1, 2018, and each fiscal year thereafter, there is appropriated from the general fund of the state to the department of revenue to be credited to the fund an amount necessary to pay all commercial and industrial property tax replacement claims for the fiscal year, not to exceed one hundred forty million dollars.
   2.  Beginning with the fiscal year beginning July 1, 2014, each county treasurer shall be paid from the commercial and industrial property tax replacement fund an amount equal to the amount of the commercial and industrial property tax replacement claims in the county, as calculated in subsection 4. If an amount appropriated for a fiscal year is insufficient to pay all replacement claims, the director of revenue shall prorate the disbursements from the fund to the county treasurers and shall notify the county auditors of the pro rata percentage on or before September 30. Any unspent balance in the fund as of June 30 of each year shall revert to the general fund of the state as provided by section 8.33.
   3.
  a.  On or before July 1 of each fiscal year beginning on or after July 1, 2014, the assessor shall determine the total assessed value of all commercial property, industrial property, and property assessed by the department of revenue pursuant to chapter 434 assessed for taxes due and payable in that fiscal year and the total assessed value of such property assessed as of January 1, 2012, and shall report the valuations to the county auditor.
   b.  For purposes of calculating replacement claims under this division of this Act, the total assessed value of commercial property, industrial property, and property assessed by the department of revenue pursuant to chapter 434 as of January 1, 2012, shall not include property classified as multiresidential property under section 441.21, subsection 13, if enacted by division VI of this Act, which was classified as commercial property, industrial property, or property assessed by the department of revenue pursuant to chapter 434 for assessment years beginning before January 1, 2013.
   4.  On or before September 1 of each fiscal year beginning on or after July 1, 2014, the county auditor shall prepare a statement, based upon the report received pursuant to subsection 3, listing for each taxing district in the county:
   a.  The difference between the assessed valuation of all commercial property, industrial property, and property assessed by the department of revenue pursuant to chapter 434 for the assessment year used to calculate taxes which are due and payable in the applicable fiscal year and the assessed value of all commercial property, industrial property, and property assessed by the department of revenue pursuant to chapter 434 assessed as of January 1, 2012. If the assessed value of all commercial property, industrial property, and property assessed by the department of revenue pursuant to chapter 434 assessed as of January 1, 2012, is less than the assessed valuation of all commercial property, industrial property, and property assessed by the department of revenue pursuant to chapter 434 for the assessment year used to calculate taxes which are due and payable in the applicable fiscal year, there is no tax replacement for that taxing district for the fiscal year.
   b.  The tax levy rate for each taxing district for that fiscal year.
   c.  The commercial and industrial property tax replacement claim for each taxing district. For fiscal years beginning on or after July 1, 2014, the replacement claim is equal to the amount determined pursuant to paragraph “a”, multiplied by the tax rate specified in paragraph “b”.
   5.  For purposes of computing replacement amounts under this section, that portion of an urban renewal area defined as the sum of the assessed valuations defined in section 403.19, subsections 1 and 2, shall be considered a taxing district.
   6.
  a.  The county auditor shall certify and forward one copy of the statement to the department of revenue not later than September 1 of each year.
   b.  The replacement claims shall be paid to each county treasurer in equal installments in September and March of each year. The county treasurer shall apportion the replacement claim payments among the eligible taxing districts in the county.
   c.  If the taxing district is an urban renewal area, the amount of the replacement claim shall be apportioned as provided in subsection 7.
   7.
  a.  If the total assessed value of property located in an urban renewal area taxing district for the assessment year for property taxes due and payable in the applicable fiscal year is equal to or more than that portion of such valuation defined in section 403.19, subsection 1, the total replacement claim amount computed pursuant to subsection 4 shall be credited to that portion of the assessed value defined in section 403.19, subsection 2.
   b.  If the total assessed value of the property located in an urban renewal area taxing district for the assessment year for property taxes due and payable in the applicable fiscal year is less than that portion of such valuation defined in section 403.19, subsection 1, the replacement amount shall be credited to those portions of the assessed value defined in section 403.19, subsections 1 and 2, as follows:
   (1)  To that portion defined in section 403.19, subsection 1, an amount equal to the amount that would be produced by multiplying the applicable consolidated levy rate times the difference between the assessed value of the taxable property defined in section 403.19, subsection 1, and the total assessed value of the property located in the urban renewal area taxing district in the assessment year for property taxes due and payable in the fiscal year for which the replacement claim is computed.
   (2)  To that portion defined in section 403.19, subsection 2, the remaining amount, if any.
   c.  Notwithstanding the allocation provisions of paragraphs “a” and “b”, the amount of the tax replacement amount that shall be allocated to that portion of the assessed value defined in section 403.19, subsection 2, shall not exceed the amount equal to the amount certified to the county auditor under section 403.19 for the fiscal year in which the claim is paid, after deduction of the amount of other revenues committed for payment on that amount for the fiscal year. The amount not allocated to that portion of the assessed value defined in section 403.19, subsection 2, as a result of the operation of this paragraph, shall be allocated to that portion of assessed value defined in section 403.19, subsection 1.
   d.  The amount of the replacement claim amount credited to the portion of the assessed value defined in section 403.19, subsection 1, shall be allocated to and when received be paid into the fund for the respective taxing district as taxes by or for the taxing district into which all other property taxes are paid. The amount of the replacement claim amount credited to the portion of the assessed value defined in section 403.19, subsection 2, shall be allocated to and when collected be paid into the special fund of the municipality under section 403.19, subsection 2.
   Sec. 9.  SAVINGS PROVISION.  This division of this Act, pursuant to section 4.13, does not affect the operation of, or prohibit the application of, prior provisions of section 441.21, or rules adopted under chapter 17A to administer prior provisions of section 441.21, for assessment years beginning before January 1, 2013, and for duties, powers, protests, appeals, proceedings, actions, or remedies attributable to an assessment year beginning before January 1, 2013.
   Sec. 10.  APPLICABILITY.  This division of this Act applies to assessment years beginning on or after January 1, 2013.

DIVISION III

TELECOMMUNICATIONS PROPERTY TAX
   Sec. 11.  Section 427A.1, subsection 1, paragraph h, Code 2011, is amended to read as follows:
   h.  Property assessed by the department of revenue pursuant to sections 428.24 to 428.29, or chapters 433, 434, 437, 437A, and 438.
   Sec. 12.  Section 433.4, Code 2011, is amended to read as follows:
   433.4  Assessment.
   1.  The director of revenue shall on or before October 31 each year, proceed to find the actual value of the property of these companies in this state
 
used by the companies in the transaction of telegraph and telephone business, taking into consideration the information obtained from the statements required, and any further information the director can obtain, using the same as a means for determining the actual cash value of the property of these companies within this state. The director shall also take into consideration the valuation of all property of these companies, including franchises and the use of the property in connection with lines outside the state, and making these deductions as may be necessary on account of extra value of property outside the state as compared with the value of property in the state, in order that the actual cash value of the property of the company within this state may be ascertained. The assessment shall include all property of every kind and character whatsoever, real, personal, or mixed, used by the companies in the transaction of telegraph and telephone business; and the
 
The property so included in the assessment shall not be taxed in any other manner than as provided in this chapter.
   2.
  a.  Except as provided in paragraph “c”, for assessment years beginning on or after January 1, 2013, a company’s property, excluding the property identified in paragraph “b” as exempt from taxation, shall be subject to assessment and taxation under this chapter by the director of revenue in the same manner as property assessed and taxed as commercial property under chapters 427, 427A, 427B, 428, and 441.
   b.  All of the following is exempt from taxation and shall not be assessed for taxation under this chapter:
   (1)  Central office equipment.
   (2)  Transmission equipment.
   (3)  Qualified telephone company property. However, qualified telephone company property shall be valued and included in the company’s assessment for the assessment years, and to the extent specified, in paragraph “c”.
   (4)  Intangible property.
   c.  For assessment years beginning on or after January 1, 2013, but before January 1, 2018, the director of revenue shall include as part of the actual value determined under paragraph “a” for the applicable assessment year, the following:
   (1)  For the assessment year beginning January 1, 2013, an amount equal to the actual value of the company’s qualified telephone company property that exceeds five million dollars.
   (2)  For the assessment year beginning January 1, 2014, an amount equal to the actual value of the company’s qualified telephone company property that exceeds twenty-five million dollars.
   (3)  For the assessment year beginning January 1, 2015, an amount equal to the actual value of the company’s qualified telephone company property that exceeds fifty million dollars.
   (4)  For the assessment year beginning January 1, 2016, an amount equal to the actual value of the company’s qualified telephone company property that exceeds one hundred million dollars.
   (5)  For the assessment year beginning January 1, 2017, an amount equal to the actual value of the company’s qualified telephone company property that exceeds one hundred fifty million dollars.
   Sec. 13.  Section 433.12, Code 2011, is amended by adding the following new subsections:
   NEW SUBSECTION.  1A.  As used in this chapter, “central office equipment” means equipment owned or leased by a company and used in initiating, amplifying, switching, or monitoring telecommunications services, including such ancillary equipment necessary for the support, regulation, control, repair, or testing of such equipment.
   NEW SUBSECTION.  2A.  As used in this chapter, “intangible property” includes but is not limited to goodwill associated with a company.
   NEW SUBSECTION.  3.  As used in this chapter, “qualified telephone company property” means telephone wire, telephone cable, fiber optic cable, conduit systems, poles, or other equipment owned or leased by a company and used by the company to transmit sound or data.
   NEW SUBSECTION.  4.  As used in this chapter, “transmission equipment” means equipment owned or leased by a company and used in the process of sending information from one location to another location, including such ancillary equipment necessary for the support, regulation, control, repair, or testing of such equipment.
   Sec. 14.  Section 476.1D, subsection 10, Code Supplement 2011, is amended by striking the subsection.
   Sec. 15.  SAVINGS PROVISION.  This division of this Act, pursuant to section 4.13, does not affect the operation of, or prohibit the application of, prior provisions of chapter 433, or rules adopted under chapter 17A to administer prior provisions of chapter 433, for assessment years beginning before January 1, 2013, and for duties, powers, protests, appeals, proceedings, actions, or remedies attributable to an assessment year beginning before January 1, 2013.
   Sec. 16.  IMPLEMENTATION.  Section 25B.7 shall not apply to this division of this Act.
   Sec. 17.  EFFECTIVE DATE.
   1.  Except as provided in subsection 2, this division of this Act takes effect July 1, 2012.
   2.  The section of this division of this Act amending section 476.1D takes effect July 1, 2017.
   Sec. 18.  APPLICABILITY.
   1.  Except as provided in subsection 2, this division of this Act applies to assessment years beginning on or after January 1, 2013.
   2.  The section of this division of this Act amending section 476.1D applies to assessment years beginning on or after January 1, 2018.

DIVISION IV

COUNTY AND CITY BUDGET LIMITATION
   Sec. 19.  Section 23A.2, subsection 10, paragraph h, Code 2011, is amended to read as follows:
   h.  The performance of an activity listed in section 331.424,
 
Code 2011, as a service for which a supplemental levy
 
county may be certified
 
include in its budget.
   Sec. 20.  Section 28M.5, subsection 2, Code 2011, is amended to read as follows:
   2.  If a regional transit district budget allocates revenue responsibilities to the board of supervisors of a participating county, the amount of the regional transit district levy that is the responsibility of the participating county shall be deducted from the maximum rates
 
amount of taxes authorized to be levied by the county pursuant to section 331.423, subsections 1 and 2
 
subsection 3, paragraphs “b” and “c”, as applicable, unless the county meets its revenue responsibilities as allocated in the budget from other available revenue sources. However, for a regional transit district that includes a county with a population of less than three hundred thousand, the amount of the regional transit district levy that is the responsibility of such participating county shall be deducted from the maximum rate
 
amount of taxes authorized to be levied by the county pursuant to section 331.423, subsection 1
 
3, paragraph “b”.
   Sec. 21.  Section 123.38, subsection 2, Code 2011, is amended to read as follows:
   2.  Any licensee or permittee, or the licensee’s or permittee’s executor or administrator, or any person duly appointed by the court to take charge of and administer the property or assets of the licensee or permittee for the benefit of the licensee’s or permittee’s creditors, may voluntarily surrender a license or permit to the division. When a license or permit is surrendered the division shall notify the local authority, and the division or the local authority shall refund to the person surrendering the license or permit, a proportionate amount of the fee received by the division or the local authority for the license or permit as follows:  if a license or permit is surrendered during the first three months of the period for which it was issued, the refund shall be three-fourths of the amount of the fee; if surrendered more than three months but not more than six months after issuance, the refund shall be one-half of the amount of the fee; if surrendered more than six months but not more than nine months after issuance, the refund shall be one-fourth of the amount of the fee. No refund shall be made, however, for any special liquor permit, nor for a liquor control license, wine permit, or beer permit surrendered more than nine months after issuance. For purposes of this subsection, any portion of license or permit fees used for the purposes authorized in section 331.424, subsection 1, paragraph “a”, subparagraphs (1) and (2),
 
Code 2011, and in section 331.424A, shall not be deemed received either by the division or by a local authority. No refund shall be made to any licensee or permittee, upon the surrender of the license or permit, if there is at the time of surrender, a complaint filed with the division or local authority, charging the licensee or permittee with a violation of this chapter. If upon a hearing on a complaint the license or permit is not revoked or suspended, then the licensee or permittee is eligible, upon surrender of the license or permit, to receive a refund as provided in this section; but if the license or permit is revoked or suspended upon hearing the licensee or permittee is not eligible for the refund of any portion of the license or permit fee.
   Sec. 22.  Section 218.99, Code 2011, is amended to read as follows:
   218.99  Counties to be notified of patients’ personal accounts.
   The administrator in control of a state institution shall direct the business manager of each institution under the administrator’s jurisdiction which is mentioned in section 331.424, subsection 1, paragraph “a”, subparagraphs (1) and (2), and for which services are paid under section 331.424A, to quarterly inform the county of legal settlement’s entity designated to perform the county’s central point of coordination process of any patient or resident who has an amount in excess of two hundred dollars on account in the patients’ personal deposit fund and the amount on deposit. The administrators shall direct the business manager to further notify the entity designated to perform the county’s central point of coordination process at least fifteen days before the release of funds in excess of two hundred dollars or upon the death of the patient or resident. If the patient or resident has no county of legal settlement, notice shall be made to the director of human services and the administrator in control of the institution involved.
   Sec. 23.  Section 331.263, subsection 2, Code 2011, is amended to read as follows:
   2.  The governing body of the community commonwealth shall have the authority to levy county taxes and shall have the authority to levy city taxes to the extent the city tax levy authority is transferred by the charter to the community commonwealth. A city participating in the community commonwealth shall transfer a portion of the city’s tax levy authorized under section 384.1 or 384.12, whichever is applicable, to the governing body of the community commonwealth. The maximum rates
 
amount of taxes authorized to be levied under sections
 
section 384.1 and
 
the maximum amount of taxes authorized to be levied under section 384.12 by a city participating in the community commonwealth shall be reduced by an amount equal to the rates of the same or similar taxes levied in the city by the governing body of the community commonwealth.
   Sec. 24.  Section 331.301, subsection 12, Code Supplement 2011, is amended to read as follows:
   12.  The board of supervisors may credit funds to a reserve for the purposes authorized by subsection 11 of this section; section 331.424, subsection 1, paragraph “a”, subparagraph (6); and section 331.441, subsection 2, paragraph “b”. Moneys credited to the reserve, and interest earned on such moneys, shall remain in the reserve until expended for purposes authorized by subsection 11 of this section; section 331.424, subsection 1, paragraph “a”, subparagraph (6); or section 331.441, subsection 2, paragraph “b”.
   Sec. 25.  Section 331.421, subsections 1 and 10, Code 2011, are amended by striking the subsections.
   Sec. 26.  Section 331.421, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  7A.  “Item” means a budgeted expenditure, appropriation, or cash reserve from a fund for a service area, program, program element, or purpose.
   Sec. 27.  Section 331.423, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   331.423  Property tax dollars —— maximums.
   1.  Annually, the board shall determine separate property tax levy limits to pay for general county services and rural county services in accordance with this section. The property tax levies separately certified for general county services and rural county services under section 331.434 shall not raise property tax dollars that exceed the amount determined under this section.
   2.  For purposes of this section and section 331.423B, unless the context otherwise requires:
   a.  “Annual growth factor” means an index, expressed as a percentage, determined by the department of management by January 1 of the calendar year in which the budget year begins. In determining the annual growth factor, the department shall calculate the average of the preceding twelve-month percentage change, which shall be computed on a monthly basis, in the midwest consumer price index, ending with the percentage change for the month of November. The department shall then add that average percentage change to one hundred percent. In no case, however, shall the annual growth factor exceed one hundred four percent.
   b.  “Boundary adjustment” means annexation, severance, incorporation, or discontinuance as those terms are defined in section 368.1.
   c.  “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified.
   d.  “Current fiscal year” is the fiscal year ending during the calendar year in which a budget is certified.
   e.  “Net new valuation taxes” means the amount of property tax dollars equal to the current fiscal year’s levy rate in the county for general county services or for rural county services, as applicable, multiplied by the increase from the current fiscal year to the budget year in taxable valuation due to the following:
   (1)  Net new construction, excluding all incremental valuation that is released in any one year from either a division of revenue under section 260E.4 or 357H.9, or an urban renewal area for which taxes were being divided under section 403.19 if the property for the valuation being released remains subject to the division of revenue under section 260E.4 or 357H.9, or remains part of the urban renewal area that is subject to a division of revenue under section 403.19.
   (2)  Additions or improvements to existing structures.
   (3)  Remodeling of existing structures for which a building permit is required.
   (4)  Net boundary adjustment.
   (5)  A municipality no longer dividing tax revenues in an urban renewal area as provided in section 403.19, a community college no longer dividing revenues as provided in section 260E.4, or a rural improvement zone no longer dividing revenues as provided in section 357H.9.
   (6)  That portion of taxable property located in an urban revitalization area on which an exemption was allowed and such exemption has expired.
   3.
  a.  For the fiscal year beginning July 1, 2013, and subsequent fiscal years, the maximum amount of property tax dollars which may be certified for levy by a county for general county services and rural county services shall be the maximum property tax dollars calculated under paragraphs “b” and “c”, respectively.
   b.  The maximum property tax dollars that may be levied for general county services is an amount equal to the sum of the following:
   (1)  The annual growth factor times the current fiscal year’s maximum property tax dollars for general county services.
   (2)  The amount of net new valuation taxes in the county.
   c.  The maximum property tax dollars that may be levied for rural county services is an amount equal to the sum of the following:
   (1)  The annual growth factor times the current fiscal year’s maximum property tax dollars for rural county services. 
   (2)  The amount of net new valuation taxes in the unincorporated area of the county. 

   4.
  a.  For purposes of calculating maximum property tax dollars for general county services for the fiscal year beginning July 1, 2013, only, the term “current fiscal year’s maximum property tax dollars” shall mean the total amount of property tax dollars certified by the county for general county services for the fiscal year beginning July 1, 2012.
   b.  For purposes of calculating maximum property tax dollars for rural county services for the fiscal year beginning July 1, 2013, only, the term “current fiscal year’s maximum property tax dollars” shall mean the total amount of property tax dollars certified by the county for rural county services for the fiscal year beginning July 1, 2012.
   5.  Property taxes certified for mental health, mental retardation, and developmental disabilities services, the emergency services fund in section 331.424C, the debt service fund in section 331.430, any capital projects fund established by the county for deposit of bond, loan, or note proceeds, and any temporary increase approved pursuant to section 331.424, are not included in the maximum amount of property tax dollars that may be certified for a budget year under subsection 3. 
   6.  The department of management, in consultation with the county finance committee, shall adopt rules to administer this section. The department shall prescribe forms to be used by counties when making calculations required by this section. 
   Sec. 28.  NEW SECTION.  331.423B  Ending fund balance.
   1.
  a.  Budgeted ending fund balances for a budget year in excess of twenty-five percent of budgeted expenditures in either the general fund or rural services fund for that budget year shall be explicitly reserved or designated for a specific purpose.
   b.  A county is encouraged, but not required, to reduce ending fund balances for the budget year to an amount equal to approximately twenty-five percent of budgeted expenditures and transfers from the general fund and rural services fund for that budget year unless a decision is certified by the state appeal board ordering a reduction in the ending fund balance of any of those funds.
   c.  In a protest to the county budget under section 331.436, the county shall have the burden of proving that the budgeted balances in excess of twenty-five percent are reasonably likely to be appropriated for the explicitly reserved or designated specific purpose. The excess budgeted balance for the specific purpose shall be considered an increase in an item in the budget for purposes of section 24.28.
   2.
  a.  For a county that has, as of June 30, 2012, reduced its actual ending fund balance to less than twenty-five percent of actual expenditures, additional property taxes may be computed and levied as provided in this subsection. The additional property tax levy amount is an amount not to exceed twenty-five percent of actual expenditures from the general fund and rural services fund for the fiscal year beginning July 1, 2011, minus the combined ending fund balances for those funds for that year.
   b.  The amount of the additional property taxes shall be apportioned between the general fund and the rural services fund. However, the amount apportioned for general county services and for rural county services shall not exceed for each fund twenty-five percent of actual expenditures for the fiscal year beginning July 1, 2011.
   c.  All or a portion of additional property tax dollars may be levied for the purpose of increasing cash reserves for general county services and rural county services in the budget year. The additional property tax dollars authorized under this subsection but not levied may be carried forward as unused ending fund balance taxing authority until and for the fiscal year beginning July 1, 2018. The amount carried forward shall not exceed twenty-five percent of the maximum amount of property tax dollars available in the current fiscal year. Additionally, property taxes that are levied as unused ending fund balance taxing authority under this subsection may be the subject of a protest under section 331.436, and the amount will be considered an increase in an item in the budget for purposes of section 24.28. The amount of additional property taxes levied under this subsection shall not be included in the computation of the maximum amount of property tax dollars which may be certified and levied under section 331.423.
   Sec. 29.  Section 331.424, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   331.424  Authority to levy beyond maximum property tax dollars.
   1.  The board may certify additions to the maximum amount of property tax dollars to be levied for a period of time not to exceed two years if the proposition has been submitted at a special election and received a favorable majority of the votes cast on the proposition.

   2.  The special election is subject to the following:
   a.  The board must give at least thirty-two days’ notice to the county commissioner of elections that the special election is to be held. In no case, however, shall a notice be given to the county commissioner of elections after December 31 for an election on a proposition to exceed the statutory limits during the fiscal year beginning in the next calendar year.
   b.  The special election shall be conducted by the county commissioner of elections in accordance with law.
   c.  The proposition to be submitted shall be substantially in the following form:
  Vote “yes” or “no” on the following: Shall the county of _______ levy for an additional $_______ each year for ___ years beginning July 1, _____, in excess of the statutory limits otherwise applicable for the (general county services or rural services) fund?
   d.  The canvass shall be held beginning at 1:00 p.m. on the second day which is not a holiday following the special election.
   e.  Notice of the special election shall be published at least once in a newspaper as specified in section 331.305 prior to the date of the special election. The notice shall appear as early as practicable after the board has voted to submit a proposition to the voters to levy additional property tax dollars.
   3.  Registered voters in the county may vote on the proposition to increase property taxes for the general fund in excess of the statutory limit. Registered voters residing outside the corporate limits of a city within the county may vote on the proposition to increase property taxes for the rural services fund in excess of the statutory limit.
   4.  The amount of additional property tax dollars certified under this section shall not be included in the computation of the maximum amount of property tax dollars which may be certified and levied under section 331.423.
   Sec. 30.  Section 331.424A, subsection 4, Code Supplement 2011, is amended to read as follows:
   4.  For the fiscal year beginning July 1, 1996, and for each subsequent fiscal year, the county shall certify a levy for payment of services. For each fiscal year, county revenues from taxes imposed by the county credited to the services fund shall not exceed an amount equal to the amount of base year expenditures for services as defined in section 331.438, less the amount of property tax relief to be received pursuant to section 426B.2, in the fiscal year for which the budget is certified. The county auditor and the board of supervisors shall reduce the amount of the levy certified for the services fund by the amount of property tax relief to be received. A levy certified under this section is not subject to the appeal provisions of section 331.426 or to any other provision in law authorizing a county to exceed, increase, or appeal a property tax levy limit.
   Sec. 31.  Section 331.427, subsection 3, paragraph l, Code 2011, is amended to read as follows:
   l.  Services listed in section 331.424, subsection 1,
 
Code 2011, and section 331.554.
   Sec. 32.  Section 331.428, subsection 2, paragraph d, Code 2011, is amended to read as follows:
   d.  Services listed under section 331.424, subsection 2, Code 2011.
   Sec. 33.  Section 331.434, subsection 1, Code 2011, is amended to read as follows:
   1.  The budget shall show the amount required for each class of proposed expenditures, a comparison of the amounts proposed to be expended with the amounts expended for like purposes for the two preceding years, the revenues from sources other than property taxation, and the amount to be raised by property taxation, in the detail and form prescribed by the director of the department of management. For each county that has established an urban renewal area, the budget shall include estimated and actual tax increment financing revenues and all estimated and actual expenditures of the revenues, proceeds from debt and all estimated and actual expenditures of the debt proceeds, and identification of any entity receiving a direct payment of taxes funded by tax increment financing revenues and shall include the total amount of loans, advances, indebtedness, or bonds outstanding at the close of the most recently ended fiscal year, which qualify for payment from the special fund created in section 403.19, including interest negotiated on such loans, advances, indebtedness, or bonds. For purposes of this subsection, “indebtedness” includes written agreements whereby the county agrees to suspend, abate, exempt, rebate, refund, or reimburse property taxes, provide a grant for property taxes paid, or make a direct payment of taxes, with moneys in the special fund. The amount of loans, advances, indebtedness, or bonds shall be listed in the aggregate for each county reporting. The county finance committee, in consultation with the department of management and the legislative services agency, shall determine reporting criteria and shall prepare a form for reports filed with the department pursuant to this section. The department shall make the information available by electronic means.
   Sec. 34.  Section 373.10, Code 2011, is amended to read as follows:
   373.10  Taxing authority.
   The metropolitan council shall have the authority to levy city taxes to the extent the city tax levy authority is transferred by the charter to the metropolitan council. A member city shall transfer a portion of the city’s tax levy authorized under section 384.1 or 384.12, whichever is applicable, to the metropolitan council. The maximum rates
 
amount of taxes authorized to be levied under sections
 
section 384.1 and
 
the taxes authorized to be levied under section 

384.12 by a member city shall be reduced by an amount equal to the rates of the same or similar taxes levied in the city by the metropolitan council.
   Sec. 35.  Section 384.1, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   384.1  Property tax dollars —— maximums.
   1.  A city shall certify taxes to be levied by the city on all taxable property within the city limits, for all city government purposes. Annually, the city council may certify basic levies for city government purposes, subject to the limitation on property tax dollars provided in this section.
   2.  For purposes of this section and section 384.1B, unless the context otherwise requires:
   a.  “Annual growth factor” means an index, expressed as a percentage, determined by the department of management by January 1 of the calendar year in which the budget year begins. In determining the annual growth factor, the department shall calculate the average of the preceding twelve-month percentage change, which shall be computed on a monthly basis, in the midwest consumer price index, ending with the percentage change for the month of November. The department shall then add that average percentage change to one hundred percent. In no case, however, shall the annual growth factor exceed one hundred four percent.
   b.  “Boundary adjustment” means annexation, severance, incorporation, or discontinuance as those terms are defined in section 368.1.
   c.  “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified.
   d.  “Current fiscal year” is the fiscal year ending during the calendar year in which a budget is certified.
   e.  “Net new valuation taxes” means the amount of property tax dollars equal to the current fiscal year’s levy rate in the city for the general fund multiplied by the increase from the current fiscal year to the budget year in taxable valuation due to the following:
   (1)  Net new construction, excluding all incremental valuation that is released in any one year from either a division of revenue under section 260E.4 or an urban renewal area for which taxes were being divided under section 403.19 if the property for the valuation being released remains subject to the division of revenue under section 260E.4 or remains part of the urban renewal area that is subject to a division of revenue under section 403.19.
   (2)  Additions or improvements to existing structures.
   (3)  Remodeling of existing structures for which a building permit is required.
   (4)  Net boundary adjustment.
   (5)  A municipality no longer dividing tax revenues in an urban renewal area as provided in section 403.19 or a community college no longer dividing revenues as provided in section 260E.4.
   (6)  That portion of taxable property located in an urban revitalization area on which an exemption was allowed and such exemption has expired.
   3.
  a.  For the fiscal year beginning July 1, 2013, and subsequent fiscal years, the maximum amount of property tax dollars which may be certified for levy by a city for the general fund shall be the maximum property tax dollars calculated under paragraph “b”.
   b.  The maximum property tax dollars that may be levied for deposit in the general fund is an amount equal to the sum of the following:
   (1)  The annual growth factor times the current fiscal year’s maximum property tax dollars for the general fund.
   (2)  The amount of net new valuation taxes in the city.
   4.  For purposes of calculating maximum property tax dollars for the city general fund for the fiscal year beginning July 1, 2013, only, the term “current fiscal year’s maximum property tax dollars” shall mean the total amount of property tax dollars certified by the city for the city’s general fund for the fiscal year beginning July 1, 2012.

   5.  Property taxes certified for deposit in the debt service fund in section 384.4, trust and agency funds in section 384.6, capital improvements reserve fund in section 384.7, the emergency fund in section 384.8, any capital projects fund established by the city for deposit of bond, loan, or note proceeds, any temporary increase approved pursuant to section 384.12A, property taxes collected from a voted levy in section 384.12, and property taxes levied under section 384.12, subsection 18, are not counted against the maximum amount of property tax dollars that may be certified for a fiscal year under subsection 3.
   6.  Notwithstanding the maximum amount of taxes a city may certify for levy, the tax levied by a city on tracts of land and improvements on the tracts of land used and assessed for agricultural or horticultural purposes shall not exceed three dollars and three-eighths cents per thousand dollars of assessed value in any year. Improvements located on such tracts of land and not used for agricultural or horticultural purposes and all residential dwellings are subject to the same rate of tax levied by the city on all other taxable property within the city. 
   7.  The department of management, in consultation with the city finance committee, shall adopt rules to administer this section. The department shall prescribe forms to be used by cities when making calculations required by this section. 
   Sec. 36.  NEW SECTION.  384.1B  Ending fund balance.
   1.
  a.  Budgeted ending fund balances for a budget year in excess of twenty-five percent of budgeted expenditures from the general fund for that budget year shall be explicitly reserved or designated for a specific purpose.
   b.  A city is encouraged, but not required, to reduce ending fund balances for the budget year to an amount equal to approximately twenty-five percent of budgeted expenditures and transfers from the general fund for that budget year unless a decision is certified by the state appeal board ordering a reduction in the ending fund balance of the fund.
   c.  In a protest to the city budget under section 384.19, the city shall have the burden of proving that the budgeted balances in excess of twenty-five percent are reasonably likely to be appropriated for the explicitly reserved or designated specific purpose. The excess budgeted balance for the specific purpose shall be considered an increase in an item in the budget for purposes of section 24.28.
   2.
  a.  For a city that has, as of June 30, 2012, reduced its ending fund balance to less than twenty-five percent of actual expenditures, additional property taxes may be computed and levied as provided in this subsection. The additional property tax levy amount is an amount not to exceed the difference between twenty-five percent of actual expenditures for city government purposes for the fiscal year beginning July 1, 2011, minus the ending fund balance for that year.
   b.  All or a portion of additional property tax dollars may be levied for the purpose of increasing cash reserves for city government purposes in the budget year. The additional property tax dollars authorized under this subsection but not levied may be carried forward as unused ending fund balance taxing authority until and for the fiscal year beginning July 1, 2018. The amount carried forward shall not exceed twenty-five percent of the maximum amount of property tax dollars available in the current fiscal year. Additionally, property taxes that are levied as unused ending fund balance taxing authority under this subsection may be the subject of a protest under section 384.19, and the amount will be considered an increase in an item in the budget for purposes of section 24.28. The amount of additional property tax dollars levied under this subsection shall not be included in the computation of the maximum amount of property tax dollars which may be certified and levied under section 384.1.
   Sec. 37.  Section 384.12, subsection 20, Code 2011, is amended by striking the subsection.
   Sec. 38.  NEW SECTION.  384.12A  Authority to levy beyond maximum property tax dollars.
   1.  The city council may certify additions to the maximum amount of property tax dollars to be levied for a period of time not to exceed two years if the proposition has been submitted at a special election and received a favorable majority of the votes cast on the proposition.
   2.  The special election is subject to the following:
   a.  The city council must give at least thirty-two days’ notice to the county commissioner of elections that the special election is to be held. In no case, however, shall a notice be given to the county commissioner of elections after December 31 for an election on a proposition to exceed the statutory limits during the fiscal year beginning in the next calendar year.
   b.  The special election shall be conducted by the county commissioner of elections in accordance with law.
   c.  The proposition to be submitted shall be substantially in the following form:
  Vote “yes” or “no” on the following: Shall the city of _______ levy for an additional $_______ each year for ___ years beginning next July 1, ____, in excess of the statutory limits otherwise applicable for the city general fund?
   d.  The canvass shall be held beginning at 1:00 p.m. on the second day which is not a holiday following the special election.
   e.  Notice of the special election shall be published at least once in a newspaper as specified in section 362.3 prior to the date of the special election. The notice shall appear as early as practicable after the city council has voted to submit a proposition to the voters to levy additional property tax dollars.
   3.  The amount of additional property tax dollars certified under this section shall not be included in the computation of the maximum amount of property tax dollars which may be certified and levied under section 384.1.
   Sec. 39.  Section 384.16, subsection 1, paragraph b, Code 2011, is amended to read as follows:
   b.  A budget must show comparisons between the estimated expenditures in each program in the following year, the latest estimated expenditures in each program in the current year, and the actual expenditures in each program from the annual report as provided in section 384.22, or as corrected by a subsequent audit report. Wherever practicable, as provided in rules of the committee, a budget must show comparisons between the levels of service provided by each program as estimated for the following year, and actual levels of service provided by each program during the two preceding years. For each city that has established an urban renewal area, the budget shall include estimated and actual tax increment financing revenues and all estimated and actual expenditures of the revenues, proceeds from debt and all estimated and actual expenditures of the debt proceeds, and identification of any entity receiving a direct payment of taxes funded by tax increment financing revenues and shall include the total amount of loans, advances, indebtedness, or bonds outstanding at the close of the most recently ended fiscal year, which qualify for payment from the special fund created in section 403.19, including interest negotiated on such loans, advances, indebtedness, or bonds. The amount of loans, advances, indebtedness, or bonds shall be listed in the aggregate for each city reporting. The city finance committee, in consultation with the department of management and the legislative services agency, shall determine reporting criteria and shall prepare a form for reports filed with the department pursuant to this section. The department shall make the information available by electronic means.
   Sec. 40.  Section 384.19, Code 2011, is amended by adding the following new unnumbered paragraph:
   NEW UNNUMBERED PARAGRAPH.  For purposes of a tax protest filed under this section, “item” means a budgeted expenditure, appropriation, or cash reserve from a fund for a service area, program, program element, or purpose.
   Sec. 41.  Section 386.8, Code 2011, is amended to read as follows:
   386.8  Operation tax.
   A city may establish a self-supported improvement district operation fund, and may certify taxes not to exceed the rate limitation as established in the ordinance creating the district, or any amendment thereto, each year to be levied for the fund against all of the property in the district, for the purpose of paying the administrative expenses of the district, which may include but are not limited to administrative personnel salaries, a separate administrative office, planning costs including consultation fees, engineering fees, architectural fees, and legal fees and all other expenses reasonably associated with the administration of the district and the fulfilling of the purposes of the district. The taxes levied for this fund may also be used for the purpose of paying maintenance expenses of improvements or self-liquidating improvements for a specified length of time with one or more options to renew if such is clearly stated in the petition which requests the council to authorize construction of the improvement or self-liquidating improvement, whether or not such petition is combined with the petition requesting creation of a district. Parcels of property which are assessed as residential property for property tax purposes are exempt from the tax levied under this section except residential properties within a duly designated historic district. A tax levied under this section is not subject to the levy limitation in section 384.1.
   Sec. 42.  Section 386.9, Code 2011, is amended to read as follows:
   386.9  Capital improvement tax.
   A city may establish a capital improvement fund for a district and may certify taxes, not to exceed the rate established by the ordinance creating the district, or any subsequent amendment thereto, each year to be levied for the fund against all of the property in the district, for the purpose of accumulating moneys for the financing or payment of a part or all of the costs of any improvement or self-liquidating improvement. However, parcels of property which are assessed as residential property for property tax purposes are exempt from the tax levied under this section except residential properties within a duly designated historic district. A tax levied under this section is not subject to the levy limitations in section 384.1 or 384.7.
   Sec. 43.  REPEAL.  Sections 331.425 and 331.426, Code 2011, are repealed.
   Sec. 44.  APPLICABILITY.  This division of this Act applies to fiscal years beginning on or after July 1, 2013.

DIVISION V

BUSINESS PROPERTY TAX CREDIT
   Sec. 45.  Section 331.512, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  13B.  Carry out duties relating to the business property tax credit as provided in chapter 426C.
   Sec. 46.  Section 331.559, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  14A.  Carry out duties relating to the business property tax credit as provided in chapter 426C.
   Sec. 47.  NEW SECTION.  426C.1  Definitions.
   For the purposes of this chapter, unless the context otherwise requires:
   1.  “Contiguous parcels” means any of the following:
   a.  Parcels that share a common boundary.
   b.  Parcels within the same building or structure regardless of whether the parcels share a common boundary.
   c.  Permanent improvements to the land that are situated on one or more parcels of land that are assessed and taxed separately from the permanent improvements if the parcels of land upon which the permanent improvements are situated share a common boundary.
   2.  “Department” means the department of revenue.
   3.  “Fund” means the business property tax credit fund created in section 426C.2.
   4.  “Parcel” means as defined in section 445.1.

   5.  “Property unit” means contiguous parcels all of which are located within the same county, with the same property tax classification, each of which contains permanent improvements, are owned by the same person, and are operated by that person for a common use and purpose.
   Sec. 48.  NEW SECTION.  426C.2  Business property tax credit fund —— appropriation.
   1.  A business property tax credit fund is created in the state treasury under the authority of the department. For the fiscal year beginning July 1, 2014, there is appropriated from the general fund of the state to the department to be credited to the fund, the sum of twenty-four million dollars to be used for business property tax credits authorized in this chapter. For the fiscal year beginning July 1, 2015, there is appropriated from the general fund of the state to the department to be credited to the fund, the sum of forty-eight million dollars. For the fiscal year beginning July 1, 2016, there is appropriated from the general fund of the state to the department to be credited to the fund, the sum of seventy-two million dollars. For the fiscal year beginning July 1, 2017, there is appropriated from the general fund of the state to the department to be credited to the fund, the sum of ninety-six million dollars. For the fiscal year beginning July 1, 2018, and each fiscal year thereafter, there is appropriated from the general fund of the state to the department to be credited to the fund, the sum of one hundred twenty million dollars.
   2.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the fund shall be credited to the fund. Moneys in the fund are not subject to the provisions of section 8.33 and shall not be transferred, used, obligated, appropriated, or otherwise encumbered except as provided in this chapter.
   Sec. 49.  NEW SECTION.  426C.3  Claims for credit.
   1.  Each person who wishes to claim the credit allowed under this chapter shall obtain the appropriate forms from the assessor and file the claim with the assessor. The director of revenue shall prescribe suitable forms and instructions for such claims, and make such forms and instructions available to the assessors.
   2.
  a.  Claims for the business property tax credit shall be filed not later than March 15 preceding the fiscal year during which the taxes for which the credit is claimed are due and payable.
   b.  A claim filed after the deadline for filing claims shall be considered as a claim for the following year.
   3.  Upon the filing of a claim and allowance of the credit, the credit shall be allowed on the parcel or property unit for successive years without further filing as long as the parcel or property unit satisfies the requirements for the credit. If the parcel or property unit owner ceases to qualify for the credit under this chapter, the owner shall provide written notice to the assessor by the date for filing claims specified in subsection 2 following the date on which the parcel or property unit ceases to qualify for the credit.
   4.  When all or a portion of a parcel or property unit that is allowed a credit under this chapter is sold, transferred, or ownership otherwise changes, the buyer, transferee, or new owner who wishes to receive the credit shall refile the claim for credit. In addition, when a portion of a parcel or property unit that is allowed a credit under this chapter is sold, transferred, or ownership otherwise changes, the owner of the portion of the parcel or property unit for which ownership did not change shall refile the claim for credit.
   5.  The assessor shall remit the claims for credit to the county auditor with the assessor’s recommendation for allowance or disallowance. If the assessor recommends disallowance of a claim, the assessor shall submit the reasons for the recommendation, in writing, to the county auditor. The county auditor shall forward the claims to the board of supervisors. The board shall allow or disallow the claims.
   6.  For each claim and allowance of a credit for a property unit, the county auditor shall calculate the average of all consolidated levy rates applicable to the several parcels within the property unit. All claims for credit which have been allowed by the board of supervisors, the actual value of the permanent improvements to such parcels and property units applicable to the fiscal year for which the credit is claimed that are subject to assessment and taxation prior to imposition of any applicable assessment limitation, the consolidated levy rates for such parcels and the average consolidated levy rates for such property units applicable to the fiscal year for which the credit is claimed, and the taxing districts in which the parcel or property unit is located, shall be certified on or before June 30, in each year, by the county auditor to the department.

   7.  The assessor shall maintain a permanent file of current business property tax credits. The assessor shall file a notice of transfer of property for which a credit has been allowed when notice is received from the office of the county recorder, from the person who sold or transferred the property, or from the personal representative of a deceased property owner. The county recorder shall give notice to the assessor of each transfer of title filed in the recorder’s office. The notice from the county recorder shall describe the property transferred, the name of the person transferring title to the property, and the name of the person to whom title to the property has been transferred.
   Sec. 50.  NEW SECTION.  426C.4  Eligibility and amount of credit.
   1.  Each parcel classified and taxed as commercial property, industrial property, or railway property under chapter 434, and improved with permanent construction, is eligible for a credit under this chapter. A person may claim and receive one credit under this chapter for each eligible parcel unless the parcel is part of a property unit. A person may only claim and receive one credit under this chapter for each property unit. A credit approved for a property unit shall be allocated to the several parcels within the property unit in the proportion that each parcel’s total amount of property taxes due and payable attributable to the permanent improvements bears to the total amount of property taxes due and payable attributable to the permanent improvements for the property unit. Only property units comprised of commercial property, comprised of industrial property, or comprised of railway property under chapter 434 are eligible for a credit under this chapter.
   2.  Using the actual value of the permanent improvements and the consolidated levy rate for each parcel or the average consolidated levy rate for each property unit, as certified by the county auditor to the department under section 426C.3, subsection 6, the department shall calculate, for each fiscal year, an initial amount of actual value of permanent improvements for use in determining the amount of the credit for each such parcel or property unit so as to provide the maximum possible credit according to the credit formula and limitations under subsection 3, and to provide a total dollar amount of credits against the taxes due and payable in the fiscal year equal to ninety-eight percent of the moneys in the fund following the deposit of the appropriation for the fiscal year.
   3.
  a.  The amount of the credit for each parcel or property unit for which a claim for credit under this chapter has been approved shall be calculated under paragraph “b” using the lesser of the initial amount of actual value of the permanent improvements determined by the department under subsection 2, and the actual value of the permanent improvements to the parcel or property unit as certified by the county auditor under section 426C.3, subsection 6.
   b.  The amount of the credit for each parcel or property unit for which a claim for credit under this chapter has been approved shall be equal to the amount of actual value determined under paragraph “a” multiplied by the difference, stated as a percentage, between the assessment limitation applicable to the parcel or property unit under section 441.21, subsection 5, and the assessment limitation applicable to residential property under section 441.21, subsection 4, divided by one thousand dollars, and then multiplied by the consolidated levy rate or average consolidated levy rate for one thousand dollars of taxable value applicable to the parcel or property unit for the fiscal year for which the credit is claimed as certified by the county auditor under section 426C.3, subsection 6.
   Sec. 51.  NEW SECTION.  426C.5  Payment to counties.
   1.  Annually the department shall certify to the county auditor of each county the amounts of the business property tax credits allowed in the county. Each county auditor shall then enter the credits against the tax levied on each eligible parcel or property unit in the county, designating on the tax lists the credit as being from the fund. Each taxing district shall receive its share of the business property tax credit allowed on each eligible parcel or property unit in such taxing district, in the proportion that the levy made by such taxing district upon the parcel or property unit bears to the total levy upon the parcel or property unit by all taxing districts imposing a property tax in such taxing district. However, the several taxing districts shall not draw the moneys so credited until after the semiannual allocations have been received by the county treasurer, as provided in this section. Each county treasurer shall show on each tax receipt the amount of credit received from the fund.
   2.  The director of the department of administrative services shall issue warrants on the fund payable to the county treasurers of the several counties of the state under this chapter.
   3.  The amount due each county shall be paid in two payments on November 15 and March 15 of each fiscal year, drawn upon warrants payable to the respective county treasurers. The two payments shall be as nearly equal as possible.
   Sec. 52.  NEW SECTION.  426C.6  Appeals.
   1.  If the board of supervisors disallows a claim for credit under section 426C.3, subsection 5, the board of supervisors shall send written notice, by mail, to the claimant at the claimant’s last known address. The notice shall state the reasons for disallowing the claim for the credit. The board of supervisors is not required to send notice that a claim for credit is disallowed if the claimant voluntarily withdraws the claim. Any person whose claim is denied under the provisions of this chapter may appeal from the action of the board of supervisors to the district court of the county in which the parcel or property unit is located by giving written notice of such appeal to the county auditor within twenty days from the date of mailing of notice of such action by the board of supervisors.
   2.  If any claim for credit has been denied by the board of supervisors, and such action is subsequently reversed on appeal, the credit shall be allowed on the applicable parcel or property unit, and the director of revenue, the county auditor, and the county treasurer shall provide the credit and change their books and records accordingly. In the event the appealing taxpayer has paid one or both of the installments of the tax payable in the year or years in question, remittance shall be made to such taxpayer of the amount of such credit. The amount of such credit awarded on appeal shall be allocated and paid from the balance remaining in the fund.
   Sec. 53.  NEW SECTION.  426C.7  Audit —— denial.
   1.  If on the audit of a credit provided under this chapter, the director of revenue determines the amount of the credit to have been incorrectly calculated or that the credit is not allowable, the director shall recalculate the credit and notify the taxpayer and the county auditor of the recalculation or denial and the reasons for it. The director shall not adjust a credit after three years from October 31 of the year in which the claim for the credit was filed. If the credit has been paid, the director shall give notification to the taxpayer, the county treasurer, and the applicable assessor of the recalculation or denial of the credit and the county treasurer shall proceed to collect the tax owed in the same manner as other property taxes due and payable are collected, if the parcel or property unit for which the credit was allowed is still owned by the taxpayer. If the parcel or property unit for which the credit was allowed is not owned by the taxpayer, the amount may be recovered from the taxpayer by assessment in the same manner that income taxes are assessed under sections 422.26 and 422.30. The amount of such erroneous credit, when collected, shall be deposited in the fund.
   2.  The taxpayer or board of supervisors may appeal any decision of the director of revenue to the state board of tax review pursuant to section 421.1, subsection 5. The taxpayer, the board of supervisors, or the director of revenue may seek judicial review of the action of the state board of tax review in accordance with chapter 17A.
   Sec. 54.  NEW SECTION.  426C.8  False claim —— penalty.
   A person who makes a false claim for the purpose of obtaining a credit provided for in this chapter or who knowingly receives the credit without being legally entitled to it is guilty of a fraudulent practice. The claim for a credit of such a person shall be disallowed and if the credit has been paid the amount shall be recovered in the manner provided in section 426C.7. In such cases, the director of revenue shall send a notice of disallowance of the credit.
   Sec. 55.  NEW SECTION.  426C.9  Rules.
   The director of revenue shall prescribe forms, instructions, and rules pursuant to chapter 17A, as necessary, to carry out the purposes of this chapter.
   Sec. 56.  APPLICABILITY.  This division of this Act applies to property taxes due and payable in fiscal years beginning on or after July 1, 2014.

DIVISION VI

MULTIRESIDENTIAL PROPERTY CLASSIFICATION
   Sec. 57.  Section 404.2, subsection 2, paragraph f, Code 2011, is amended to read as follows:
   f.  A statement specifying whether the revitalization is applicable to none, some, or all of the property assessed as residential,
 
multiresidential, agricultural, commercial, or industrial property within the designated area or a combination thereof and whether the revitalization is for rehabilitation and additions to existing buildings or new construction or both. If revitalization is made applicable only to some property within an assessment classification, the definition of that subset of eligible property must be by uniform criteria which further some planning objective identified in the plan. The city shall state how long it is estimated that the area shall remain a designated revitalization area which time shall be longer than one year from the date of designation and shall state any plan by the city to issue revenue bonds for revitalization projects within the area. For a county, a revitalization area shall include only property which will be used as industrial property, commercial property, commercial property consisting of three or more separate living quarters with at least seventy-five percent of the space used for residential purposes,
 
multiresidential property, or residential property. However, a county shall not provide a tax exemption under this chapter to commercial property, commercial property consisting of three or more separate living quarters with at least seventy-five percent of the space used for residential purposes,
 
multiresidential property, or residential property which is located within the limits of a city.
   Sec. 58.  Section 404.3, subsection 4, Code 2011, is amended to read as follows:
   4.  All qualified real estate assessed as residential property or assessed as commercial property, if the commercial property consists of three or more separate living quarters with at least seventy-five percent of the space used for residential purposes,
 
or assessed as multiresidential property is eligible to receive a one hundred percent exemption from taxation on the actual value added by the improvements. The exemption is for a period of ten years.
   Sec. 59.  Section 441.21, subsection 8, paragraph b, Code Supplement 2011, is amended to read as follows:
   b.  Notwithstanding paragraph “a”, any construction or installation of a solar energy system on property classified as agricultural, residential, commercial,
 
multiresidential, or industrial property shall not increase the actual, assessed, and taxable values of the property for five full assessment years.
   Sec. 60.  Section 441.21, subsections 9 and 10, Code Supplement 2011, are amended to read as follows:
   9.  Not later than November 1, 1979, and November 1 of each subsequent year, the director shall certify to the county auditor of each county the percentages of actual value at which residential property, agricultural property, commercial property, industrial property,
 
multiresidential property, and property valued by the department of revenue pursuant to chapters 428, 433, 434, 437, and 438 in each assessing jurisdiction in the county shall be assessed for taxation. The county auditor shall proceed to determine the assessed values of agricultural property, residential property, commercial property, industrial property,
 
multiresidential property, and property valued by the department of revenue pursuant to chapters 428, 433, 434, 437, and 438 by applying such percentages to the current actual value of such property, as reported to the county auditor by the assessor, and the assessed values so determined shall be the taxable values of such properties upon which the levy shall be made.
   10.  The percentage of actual value computed by the director for agricultural property, residential property, commercial property, industrial property, multiresidential property, and property valued by the department of revenue pursuant to chapters 428, 433, 434, 437, and 438 and used to determine assessed values of those classes of property does not constitute a rule as defined in section 17A.2, subsection 11.
   Sec. 61.  Section 441.21, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  13.
  a.  Beginning with valuations established on or after January 1, 2013, mobile home parks, manufactured home communities, land-leased communities, assisted living facilities, and that portion of a building that is used for human habitation and a proportionate share of the land upon which the building is situated, even if the use for human habitation is not the primary use of the building, and regardless of the number of dwelling units located in the building, and not otherwise classified as residential property, shall be valued as a separate class of property known as multiresidential property and, excluding properties referred to in section 427A.1, subsection 8, shall be assessed at a percentage of its actual value, as determined in this subsection. For valuations established for the assessment year beginning January 1, 2013, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which multiresidential property shall be assessed shall be ninety percent. For valuations established for the assessment year beginning January 1, 2014, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which multiresidential property shall be assessed shall be eighty percent. For valuations established for the assessment year beginning January 1, 2015, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which multiresidential property shall be assessed shall be seventy percent. For valuations established for the assessment year beginning January 1, 2016, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which multiresidential property shall be assessed shall be sixty percent. For valuations established for the assessment year beginning January 1, 2017, and each assessment year thereafter, the percentage of actual value as equalized by the director of revenue as provided in section 441.49 at which multiresidential property shall be assessed shall be equal to the percentage of actual value at which property assessed as residential property is assessed under subsection 4 for the same assessment year.
   b.  Accordingly, the assessor may assign more than one classification to a parcel of property that, in part, satisfies the requirements of this subsection. In no case, however, shall a hotel, motel, inn, or other building where rooms or dwelling units are usually rented for less than one month be classified as multiresidential property under this subsection.
   c.  As used in this subsection:
   (1)  “Assisted living facility” means property for providing assisted living as defined in section 231C.2.
   (2)  “Dwelling unit” means an apartment, group of rooms, or single room which is occupied as separate living quarters or, if vacant, is intended for occupancy as separate living quarters, in which a tenant can live and sleep separately from any other persons in the building.
   (3)  “Land-leased community” means the same as defined in sections 335.30A and 414.28A.
   (4)  “Manufactured home community” means the same as a land-leased community.
   (5)  “Mobile home park” means the same as defined in section 435.1.
   Sec. 62.  Section 558.46, subsection 5, Code 2011, is amended to read as follows:
   5.  For the purposes of this section, “residential property” includes commercial
 
multiresidential property
 
as defined in section 441.21, subsection 13, consisting of three or more separate living quarters with at least seventy-five percent of the space used for residential purposes.
   Sec. 63.  APPLICABILITY.  This division of this Act applies to assessment years beginning on or after January 1, 2013.>
   2.  Title page, by striking lines 1 through 10 and inserting <An Act relating to taxation and local government budgets by providing for an increase in the amount of the earned income tax credit, establishing and modifying property assessment limitations, providing for certain property tax replacement payments, modifying the assessment and taxation of telecommunications company property, establishing budget limitations for counties and cities, modifying certain reporting requirements, establishing a property tax credit for certain commercial, industrial, and railway property, establishing a multiresidential property classification, providing penalties, making appropriations, and including effective date, retroactive applicability, and other applicability provisions.>

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RANDY FEENSTRA

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JAMES F. HAHN

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STEVE KETTERING

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JONI ERNST

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BILL ANDERSON

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RICK BERTRAND

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KENT SORENSON

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DAVID JOHNSON

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HUBERT HOUSER

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JAMES A. SEYMOUR

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BILL DIX

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TIM KAPUCIAN

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NANCY J. BOETTGER

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SHAWN HAMERLINCK

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JACK WHITVER

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ROBY SMITH

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MERLIN BARTZ

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SANDRA H. GREINER

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PAT WARD

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BRAD ZAUN