House Amendment to Senate File 295 S-3166 Amend Senate File 295, as passed by the Senate, as 1 follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < DIVISION I 5 PROPERTY ASSESSMENT LIMITATION AND REPLACEMENT 6 Section 1. Section 257.3, subsection 1, Code 2013, 7 is amended by adding the following new paragraph: 8 NEW PARAGRAPH . d. The amount paid to each school 9 district for the commercial and industrial property 10 tax replacement claim under section 441.21A shall be 11 regarded as property tax. The portion of the payment 12 which is foundation property tax shall be determined by 13 applying the foundation property tax rate to the amount 14 computed under section 441.21A, subsection 4, paragraph 15 “a” , and such amount shall be prorated pursuant to 16 section 441.21A, subsection 2, if applicable. 17 Sec. 2. Section 331.512, Code 2013, is amended by 18 adding the following new subsection: 19 NEW SUBSECTION . 13A. Carry out duties relating 20 to the calculation and payment of commercial and 21 industrial property tax replacement claims under 22 section 441.21A. 23 Sec. 3. Section 331.559, Code 2013, is amended by 24 adding the following new subsection: 25 NEW SUBSECTION . 25A. Carry out duties relating 26 to the calculation and payment of commercial and 27 industrial property tax replacement claims under 28 section 441.21A. 29 Sec. 4. Section 441.21, subsection 4, Code 2013, is 30 amended to read as follows: 31 4. For valuations established as of January 32 1, 1979, the percentage of actual value at which 33 agricultural and residential property shall be assessed 34 shall be the quotient of the dividend and divisor as 35 defined in this section . The dividend for each class 36 of property shall be the dividend as determined for 37 each class of property for valuations established as 38 of January 1, 1978, adjusted by the product obtained 39 by multiplying the percentage determined for that year 40 by the amount of any additions or deletions to actual 41 value, excluding those resulting from the revaluation 42 of existing properties, as reported by the assessors 43 on the abstracts of assessment for 1978, plus six 44 percent of the amount so determined. However, if the 45 difference between the dividend so determined for 46 either class of property and the dividend for that 47 class of property for valuations established as of 48 January 1, 1978, adjusted by the product obtained by 49 multiplying the percentage determined for that year 50 -1- SF295.1764.H (3) 85 md 1/ 42 #1.
by the amount of any additions or deletions to actual 1 value, excluding those resulting from the revaluation 2 of existing properties, as reported by the assessors 3 on the abstracts of assessment for 1978, is less than 4 six percent, the 1979 dividend for the other class of 5 property shall be the dividend as determined for that 6 class of property for valuations established as of 7 January 1, 1978, adjusted by the product obtained by 8 multiplying the percentage determined for that year 9 by the amount of any additions or deletions to actual 10 value, excluding those resulting from the revaluation 11 of existing properties, as reported by the assessors on 12 the abstracts of assessment for 1978, plus a percentage 13 of the amount so determined which is equal to the 14 percentage by which the dividend as determined for the 15 other class of property for valuations established as 16 of January 1, 1978, adjusted by the product obtained 17 by multiplying the percentage determined for that year 18 by the amount of any additions or deletions to actual 19 value, excluding those resulting from the revaluation 20 of existing properties, as reported by the assessors 21 on the abstracts of assessment for 1978, is increased 22 in arriving at the 1979 dividend for the other class 23 of property. The divisor for each class of property 24 shall be the total actual value of all such property 25 in the state in the preceding year, as reported by the 26 assessors on the abstracts of assessment submitted 27 for 1978, plus the amount of value added to said 28 total actual value by the revaluation of existing 29 properties in 1979 as equalized by the director of 30 revenue pursuant to section 441.49 . The director shall 31 utilize information reported on abstracts of assessment 32 submitted pursuant to section 441.45 in determining 33 such percentage. For valuations established as of 34 January 1, 1980, and each assessment year thereafter 35 beginning before January 1, 2013 , the percentage of 36 actual value as equalized by the director of revenue 37 as provided in section 441.49 at which agricultural 38 and residential property shall be assessed shall be 39 calculated in accordance with the methods provided 40 herein including the limitation of increases in 41 agricultural and residential assessed values to the 42 percentage increase of the other class of property if 43 the other class increases less than the allowable limit 44 adjusted to include the applicable and current values 45 as equalized by the director of revenue, except that 46 any references to six percent in this subsection shall 47 be four percent. For valuations established as of 48 January 1, 2013, and each assessment year thereafter, 49 the percentage of actual value as equalized by the 50 -2- SF295.1764.H (3) 85 md 2/ 42
director of revenue as provided in section 441.49 at 1 which agricultural and residential property shall be 2 assessed shall be calculated in accordance with the 3 methods provided in this subsection, except that any 4 references to six percent in this subsection shall 5 be two percent, and including, for assessment years 6 beginning on or after January 1, 2013, but before 7 January 1, 2017, the limitation of increases in 8 agricultural and residential assessed values to the 9 percentage increase of the other class of property if 10 the other class increases less than the allowable limit 11 adjusted to include the applicable and current values 12 as equalized by the director of revenue, and including, 13 for assessment years beginning on or after January 1, 14 2017, the limitation in subsection 5A. 15 Sec. 5. Section 441.21, subsection 5, Code 2013, is 16 amended to read as follows: 17 5. a. For valuations established as of January 18 1, 1979, commercial property and industrial property, 19 excluding properties referred to in section 427A.1, 20 subsection 8 , shall be assessed as a percentage of 21 the actual value of each class of property. The 22 percentage shall be determined for each class of 23 property by the director of revenue for the state in 24 accordance with the provisions of this section . For 25 valuations established as of January 1, 1979, the 26 percentage shall be the quotient of the dividend and 27 divisor as defined in this section . The dividend 28 for each class of property shall be the total actual 29 valuation for each class of property established for 30 1978, plus six percent of the amount so determined. 31 The divisor for each class of property shall be the 32 valuation for each class of property established for 33 1978, as reported by the assessors on the abstracts of 34 assessment for 1978, plus the amount of value added to 35 the total actual value by the revaluation of existing 36 properties in 1979 as equalized by the director of 37 revenue pursuant to section 441.49 . For valuations 38 established as of January 1, 1979, property valued by 39 the department of revenue pursuant to chapters 428 , 40 433 , 437 , and 438 shall be considered as one class 41 of property and shall be assessed as a percentage of 42 its actual value. The percentage shall be determined 43 by the director of revenue in accordance with the 44 provisions of this section . For valuations established 45 as of January 1, 1979, the percentage shall be the 46 quotient of the dividend and divisor as defined in 47 this section . The dividend shall be the total actual 48 valuation established for 1978 by the department of 49 revenue, plus ten percent of the amount so determined. 50 -3- SF295.1764.H (3) 85 md 3/ 42
The divisor for property valued by the department of 1 revenue pursuant to chapters 428 , 433 , 437 , and 438 2 shall be the valuation established for 1978, plus 3 the amount of value added to the total actual value 4 by the revaluation of the property by the department 5 of revenue as of January 1, 1979. For valuations 6 established as of January 1, 1980, commercial property 7 and industrial property, excluding properties referred 8 to in section 427A.1, subsection 8 , shall be assessed 9 at a percentage of the actual value of each class of 10 property. The percentage shall be determined for 11 each class of property by the director of revenue for 12 the state in accordance with the provisions of this 13 section . For valuations established as of January 14 1, 1980, the percentage shall be the quotient of 15 the dividend and divisor as defined in this section . 16 The dividend for each class of property shall be the 17 dividend as determined for each class of property for 18 valuations established as of January 1, 1979, adjusted 19 by the product obtained by multiplying the percentage 20 determined for that year by the amount of any 21 additions or deletions to actual value, excluding those 22 resulting from the revaluation of existing properties, 23 as reported by the assessors on the abstracts of 24 assessment for 1979, plus four percent of the amount 25 so determined. The divisor for each class of property 26 shall be the total actual value of all such property in 27 1979, as equalized by the director of revenue pursuant 28 to section 441.49 , plus the amount of value added to 29 the total actual value by the revaluation of existing 30 properties in 1980. The director shall utilize 31 information reported on the abstracts of assessment 32 submitted pursuant to section 441.45 in determining 33 such percentage. For valuations established as of 34 January 1, 1980, property valued by the department 35 of revenue pursuant to chapters 428 , 433 , 437 , and 36 438 shall be assessed at a percentage of its actual 37 value. The percentage shall be determined by the 38 director of revenue in accordance with the provisions 39 of this section . For valuations established as of 40 January 1, 1980, the percentage shall be the quotient 41 of the dividend and divisor as defined in this section . 42 The dividend shall be the total actual valuation 43 established for 1979 by the department of revenue, 44 plus eight percent of the amount so determined. The 45 divisor for property valued by the department of 46 revenue pursuant to chapters 428 , 433 , 437 , and 438 47 shall be the valuation established for 1979, plus 48 the amount of value added to the total actual value 49 by the revaluation of the property by the department 50 -4- SF295.1764.H (3) 85 md 4/ 42
of revenue as of January 1, 1980. For valuations 1 established as of January 1, 1981, and each assessment 2 year thereafter beginning before January 1, 2013 , the 3 percentage of actual value as equalized by the director 4 of revenue as provided in section 441.49 at which 5 commercial property and industrial property, excluding 6 properties referred to in section 427A.1, subsection 7 8 , shall be assessed shall be calculated in accordance 8 with the methods provided herein, except that any 9 references to six percent in this subsection shall be 10 four percent. For valuations established as of January 11 1, 1981, and each year thereafter, the percentage of 12 actual value at which property valued by the department 13 of revenue pursuant to chapters 428 , 433 , 437 , and 438 14 shall be assessed shall be calculated in accordance 15 with the methods provided herein, except that any 16 references to ten percent in this subsection shall be 17 eight percent. Beginning with valuations established 18 as of January 1, 1979, and each assessment year 19 thereafter beginning before January 1, 2013 , property 20 valued by the department of revenue pursuant to chapter 21 434 shall also be assessed at a percentage of its 22 actual value which percentage shall be equal to the 23 percentage determined by the director of revenue for 24 commercial property, industrial property, or property 25 valued by the department of revenue pursuant to 26 chapters 428 , 433 , 437 , and 438 , whichever is lowest. 27 For valuations established on or after January 1, 2013, 28 but before January 1, 2017, commercial property and 29 industrial property shall be assessed as provided in 30 paragraphs “b” and “c” , as applicable. For valuations 31 established as of January 1, 2017, and each assessment 32 year thereafter, the percentage of actual value as 33 equalized by the director of revenue as provided in 34 section 441.49 at which commercial property, excluding 35 properties referred to in section 427A.1, subsection 36 8, shall be assessed shall be calculated in accordance 37 with the methods provided in this subsection, including 38 the limitation in subsection 5A, except that any 39 references to six percent in this subsection shall be 40 two percent. For valuations established on or after 41 January 1, 2017, industrial property shall be assessed 42 at a percentage of its actual value equal to the 43 percentage of actual value at which property assessed 44 as commercial property is assessed for the same 45 assessment year following application of the limitation 46 in subsection 5A, if applicable. For valuations 47 established on or after January 1, 2013, property 48 valued by the department of revenue pursuant to chapter 49 434 shall be assessed at a percentage of its actual 50 -5- SF295.1764.H (3) 85 md 5/ 42
value equal to the percentage of actual value at which 1 property assessed as commercial property is assessed 2 for the same assessment year following application of 3 the limitation in subsection 5A, if applicable. 4 b. For valuations established on or after January 5 1, 2013, but before January 1, 2017, commercial 6 property, excluding properties referred to in section 7 427A.1, subsection 8, shall be assessed at a percentage 8 of its actual value, as determined in this paragraph 9 “b” . For valuations established for the assessment 10 year beginning January 1, 2013, the percentage of 11 actual value as equalized by the director of revenue 12 as provided in section 441.49 at which commercial 13 property shall be assessed shall be ninety-five 14 percent. For valuations established for the assessment 15 year beginning January 1, 2014, the percentage of 16 actual value as equalized by the director of revenue 17 as provided in section 441.49 at which commercial 18 property shall be assessed shall be ninety percent. 19 For valuations established for the assessment year 20 beginning January 1, 2015, the percentage of actual 21 value as equalized by the director of revenue as 22 provided in section 441.49 at which commercial property 23 shall be assessed shall be eighty-five percent. 24 For valuations established for the assessment year 25 beginning January 1, 2016, the percentage of actual 26 value as equalized by the director of revenue as 27 provided in section 441.49 at which commercial property 28 shall be assessed shall be eighty percent. 29 c. For valuations established on or after January 30 1, 2013, but before January 1, 2017, industrial 31 property, excluding properties referred to in section 32 427A.1, subsection 8, shall be assessed at a percentage 33 of its actual value, as determined in this paragraph 34 “c” . For valuations established for the assessment 35 year beginning January 1, 2013, the percentage of 36 actual value as equalized by the director of revenue 37 as provided in section 441.49 at which industrial 38 property shall be assessed shall be ninety-five 39 percent. For valuations established for the assessment 40 year beginning January 1, 2014, the percentage of 41 actual value as equalized by the director of revenue 42 as provided in section 441.49 at which industrial 43 property shall be assessed shall be ninety percent. 44 For valuations established for the assessment year 45 beginning January 1, 2015, the percentage of actual 46 value as equalized by the director of revenue as 47 provided in section 441.49 at which industrial property 48 shall be assessed shall be eighty-five percent. 49 For valuations established for the assessment year 50 -6- SF295.1764.H (3) 85 md 6/ 42
beginning January 1, 2016, the percentage of actual 1 value as equalized by the director of revenue as 2 provided in section 441.49 at which industrial property 3 shall be assessed shall be eighty percent. 4 Sec. 6. Section 441.21, Code 2013, is amended by 5 adding the following new subsection: 6 NEW SUBSECTION . 5A. In addition to the limitation 7 of increases for agricultural and residential property 8 applicable under subsection 4 and the limitation 9 of increase for commercial property applicable 10 under subsection 5, for valuations established for 11 the assessment year beginning January 1, 2017, and 12 each assessment year thereafter, for residential, 13 agricultural, and commercial property, the assessed 14 value of each of these three classes of property shall 15 be limited to the percentage increase of that class of 16 property that is the lowest percentage increase under 17 the allowable limit adjusted to include the applicable 18 and current values as equalized by the director of 19 revenue. 20 Sec. 7. Section 441.21, subsections 9 and 10, Code 21 2013, are amended to read as follows: 22 9. Not later than November 1, 1979, and November 23 1 of each subsequent year, the director shall certify 24 to the county auditor of each county the percentages 25 of actual value at which residential property, 26 agricultural property, commercial property, industrial 27 property, property valued by the department of revenue 28 pursuant to chapter 434, and property valued by the 29 department of revenue pursuant to chapters 428 , 433 , 30 434 , 437 , and 438 in each assessing jurisdiction in the 31 county shall be assessed for taxation. The county 32 auditor shall proceed to determine the assessed values 33 of agricultural property, residential property, 34 commercial property, industrial property, property 35 valued by the department of revenue pursuant to chapter 36 434, and property valued by the department of revenue 37 pursuant to chapters 428 , 433 , 434 , 437 , and 438 by 38 applying such percentages to the current actual value 39 of such property, as reported to the county auditor by 40 the assessor, and the assessed values so determined 41 shall be the taxable values of such properties upon 42 which the levy shall be made. 43 10. The percentage of actual value computed by 44 the director for agricultural property, residential 45 property, commercial property, industrial property , 46 property valued by the department of revenue pursuant 47 to chapter 434, and property valued by the department 48 of revenue pursuant to chapters 428 , 433 , 434 , 437 , and 49 438 and used to determine assessed values of those 50 -7- SF295.1764.H (3) 85 md 7/ 42
classes of property does not constitute a rule as 1 defined in section 17A.2, subsection 11 . 2 Sec. 8. NEW SECTION . 441.21A Commercial and 3 industrial property tax replacement —— replacement 4 claims. 5 1. a. For each fiscal year beginning on or after 6 July 1, 2014, there is appropriated from the general 7 fund of the state to the department of revenue an 8 amount necessary for the payment of all commercial 9 and industrial property tax replacement claims under 10 this section for the fiscal year. However, for a 11 fiscal year beginning on or after July 1, 2018, the 12 total amount of moneys appropriated from the general 13 fund of the state to the department of revenue for 14 the payment of commercial and industrial property tax 15 replacement claims in that fiscal year shall not exceed 16 the total amount of money that was necessary to pay 17 all commercial and industrial property tax replacement 18 claims for the fiscal year beginning July 1, 2017. 19 b. Moneys appropriated by the general assembly to 20 the department under this subsection for the payment 21 of commercial and industrial property tax replacement 22 claims are not subject to a uniform reduction in 23 appropriations in accordance with section 8.31. 24 2. Beginning with the fiscal year beginning 25 July 1, 2014, each county treasurer shall be paid 26 by the department of revenue an amount equal to the 27 amount of the commercial and industrial property tax 28 replacement claims in the county, as calculated in 29 subsection 4. For fiscal years beginning on or after 30 July 1, 2018, if an amount appropriated for a fiscal 31 year is insufficient to pay all replacement claims, 32 the director of revenue shall prorate the payment of 33 replacement claims to the county treasurers and shall 34 notify the county auditors of the pro rata percentage 35 on or before September 30. 36 3. On or before July 1 of each fiscal year 37 beginning on or after July 1, 2014, the assessor shall 38 report to the county auditor the total actual value of 39 all commercial property and industrial property in the 40 county for the assessment year used to calculate the 41 taxes due and payable in that fiscal year. 42 4. On or before a date established by rule of the 43 department of revenue of each fiscal year beginning on 44 or after July 1, 2014, the county auditor shall prepare 45 a statement, based upon the report received pursuant 46 to subsection 3, listing for each taxing district in 47 the county: 48 a. The difference between the assessed valuation 49 of all commercial property and industrial property for 50 -8- SF295.1764.H (3) 85 md 8/ 42
the assessment year used to calculate taxes which are 1 due and payable in the applicable fiscal year and the 2 actual value of all commercial property and industrial 3 property for the same assessment year. If the 4 difference between the assessed value of all commercial 5 property and industrial property and the actual 6 valuation of all commercial property and industrial 7 property is zero, there is no tax replacement for that 8 taxing district for the fiscal year. 9 b. The tax levy rate per one thousand dollars of 10 assessed value for each taxing district for that fiscal 11 year. 12 c. The commercial and industrial property tax 13 replacement claim for each taxing district. The 14 replacement claim is equal to the amount determined 15 pursuant to paragraph “a” , multiplied by the tax rate 16 specified in paragraph “b” , and then divided by one 17 thousand dollars. 18 5. For purposes of computing replacement amounts 19 under this section, that portion of an urban renewal 20 area defined as the sum of the assessed valuations 21 defined in section 403.19, subsections 1 and 2, shall 22 be considered a taxing district. 23 6. a. The county auditor shall certify and forward 24 one copy of the statement to the department of revenue 25 not later than a date of each year established by the 26 department of revenue by rule. 27 b. The replacement claims shall be paid to each 28 county treasurer in equal installments in September 29 and March of each year. The county treasurer shall 30 apportion the replacement claim payments among the 31 eligible taxing districts in the county. 32 c. If the taxing district is an urban renewal 33 area, the amount of the replacement claim shall be 34 apportioned and credited to those portions of the 35 assessed value defined in section 403.19, subsections 36 1 and 2, as follows: 37 (1) To that portion defined in section 403.19, 38 subsection 1, an amount of the replacement claim that 39 is proportionate to the amount of actual value of the 40 commercial and industrial property in the urban renewal 41 area as determined in section 403.19, subsection 1, 42 that was subtracted pursuant to section 403.20, as 43 it bears to the total amount of actual value of the 44 commercial and industrial property in the urban renewal 45 area that was subtracted pursuant to section 403.20 for 46 the assessment year for property taxes due and payable 47 in the fiscal year for which the replacement claim is 48 computed. 49 (2) To that portion defined in section 403.19, 50 -9- SF295.1764.H (3) 85 md 9/ 42
subsection 2, the remaining amount, if any. 1 d. Notwithstanding the allocation provisions of 2 paragraph “c” , the amount of the tax replacement amount 3 that shall be allocated to that portion of the assessed 4 value defined in section 403.19, subsection 2, shall 5 not exceed the amount equal to the amount certified to 6 the county auditor under section 403.19 for the fiscal 7 year in which the claim is paid, after deduction of 8 the amount of other revenues committed for payment 9 on that amount for the fiscal year. The amount not 10 allocated to that portion of the assessed value defined 11 in section 403.19, subsection 2, as a result of the 12 operation of this paragraph, shall be allocated to that 13 portion of assessed value defined in section 403.19, 14 subsection 1. 15 e. The amount of the replacement claim amount 16 credited to the portion of the assessed value defined 17 in section 403.19, subsection 1, shall be allocated 18 to and when received be paid into the fund for the 19 respective taxing district as taxes by or for the 20 taxing district into which all other property taxes 21 are paid. The amount of the replacement claim amount 22 credited to the portion of the assessed value defined 23 in section 403.19, subsection 2, shall be allocated to 24 and when collected be paid into the special fund of the 25 municipality under section 403.19, subsection 2. 26 Sec. 9. SAVINGS PROVISION. This division of this 27 Act, pursuant to section 4.13, does not affect the 28 operation of, or prohibit the application of, prior 29 provisions of section 441.21, or rules adopted under 30 chapter 17A to administer prior provisions of section 31 441.21, for assessment years beginning before January 32 1, 2013, and for duties, powers, protests, appeals, 33 proceedings, actions, or remedies attributable to an 34 assessment year beginning before January 1, 2013. 35 Sec. 10. EFFECTIVE UPON ENACTMENT. This division 36 of this Act, being deemed of immediate importance, 37 takes effect upon enactment. 38 Sec. 11. RETROACTIVE APPLICABILITY. This division 39 of this Act applies retroactively to January 1, 2013, 40 for assessment years beginning on or after that date. 41 DIVISION II 42 SCHOOL DISTRICT FUNDING 43 Sec. 12. Section 257.1, subsection 2, paragraph b, 44 Code 2013, is amended by striking the paragraph and 45 inserting in lieu thereof the following: 46 b. (1) The regular program foundation base per 47 pupil is the following: 48 (a) For the budget year commencing July 1, 49 2012, and the budget year commencing July 1, 2013, 50 -10- SF295.1764.H (3) 85 md 10/ 42
the regular program foundation base per pupil is 1 eighty-seven and five-tenths percent of the regular 2 program state cost per pupil. 3 (b) For the budget year commencing July 1, 2014, 4 the regular program foundation base per pupil is 5 eighty-nine and three hundred seventy-five thousandths 6 percent of the regular program state cost per pupil. 7 (c) For the budget year commencing July 1, 2015, 8 the regular program foundation base per pupil is 9 ninety-one and twenty-five hundredths percent of the 10 regular program state cost per pupil. 11 (d) For the budget year commencing July 1, 2016, 12 the regular program foundation base per pupil is 13 ninety-three and one hundred twenty-five thousandths 14 percent of the regular program state cost per pupil. 15 (e) For the budget year commencing July 1, 2017, 16 and succeeding budget years, the regular program 17 foundation base per pupil is ninety-five percent of the 18 regular program state cost per pupil. 19 (2) For each budget year, the special education 20 support services foundation base is seventy-nine 21 percent of the special education support services state 22 cost per pupil. The combined foundation base is the 23 sum of the regular program foundation base, the special 24 education support services foundation base, the total 25 teacher salary supplement district cost, the total 26 professional development supplement district cost, the 27 total early intervention supplement district cost, the 28 total area education agency teacher salary supplement 29 district cost, and the total area education agency 30 professional development supplement district cost. 31 DIVISION III 32 MULTIRESIDENTIAL PROPERTY CLASSIFICATION 33 Sec. 13. Section 404.2, subsection 2, paragraph f, 34 Code 2013, is amended to read as follows: 35 f. A statement specifying whether the 36 revitalization is applicable to none, some, or all of 37 the property assessed as residential, multiresidential, 38 agricultural, commercial , or industrial property 39 within the designated area or a combination thereof and 40 whether the revitalization is for rehabilitation and 41 additions to existing buildings or new construction or 42 both. If revitalization is made applicable only to 43 some property within an assessment classification, the 44 definition of that subset of eligible property must 45 be by uniform criteria which further some planning 46 objective identified in the plan. The city shall state 47 how long it is estimated that the area shall remain 48 a designated revitalization area which time shall 49 be longer than one year from the date of designation 50 -11- SF295.1764.H (3) 85 md 11/ 42
and shall state any plan by the city to issue revenue 1 bonds for revitalization projects within the area. For 2 a county, a revitalization area shall include only 3 property which will be used as industrial property, 4 commercial property, commercial property consisting of 5 three or more separate living quarters with at least 6 seventy-five percent of the space used for residential 7 purposes, multiresidential property, or residential 8 property. However, a county shall not provide a tax 9 exemption under this chapter to commercial property, 10 commercial property consisting of three or more 11 separate living quarters with at least seventy-five 12 percent of the space used for residential purposes 13 multiresidential property , or residential property 14 which is located within the limits of a city. 15 Sec. 14. Section 404.3, subsection 4, Code 2013, is 16 amended to read as follows: 17 4. All qualified real estate assessed as 18 residential property or assessed as commercial 19 property, if the commercial property consists of 20 three or more separate living quarters with at least 21 seventy-five percent of the space used for residential 22 purposes, or assessed as multiresidential property is 23 eligible to receive a one hundred percent exemption 24 from taxation on the actual value added by the 25 improvements. The exemption is for a period of ten 26 years. 27 Sec. 15. Section 441.21, subsection 8, paragraph b, 28 Code 2013, is amended to read as follows: 29 b. Notwithstanding paragraph “a” , any construction 30 or installation of a solar energy system on property 31 classified as agricultural, residential, commercial, 32 multiresidential, or industrial property shall not 33 increase the actual, assessed , and taxable values of 34 the property for five full assessment years. 35 Sec. 16. Section 441.21, subsections 9 and 10, Code 36 2013, are amended to read as follows: 37 9. Not later than November 1, 1979, and November 38 1 of each subsequent year, the director shall 39 certify to the county auditor of each county the 40 percentages of actual value at which residential 41 property, agricultural property, commercial property, 42 industrial property, multiresidential property, and 43 property valued by the department of revenue pursuant 44 to chapters 428 , 433 , 434 , 437 , and 438 in each 45 assessing jurisdiction in the county shall be assessed 46 for taxation. The county auditor shall proceed 47 to determine the assessed values of agricultural 48 property, residential property, commercial property, 49 industrial property, multiresidential property, and 50 -12- SF295.1764.H (3) 85 md 12/ 42
property valued by the department of revenue pursuant 1 to chapters 428 , 433 , 434 , 437 , and 438 by applying 2 such percentages to the current actual value of such 3 property, as reported to the county auditor by the 4 assessor, and the assessed values so determined shall 5 be the taxable values of such properties upon which the 6 levy shall be made. 7 10. The percentage of actual value computed by 8 the director for agricultural property, residential 9 property, commercial property, industrial property , 10 multiresidential property, and property valued by the 11 department of revenue pursuant to chapters 428 , 433 , 12 434 , 437 , and 438 and used to determine assessed values 13 of those classes of property does not constitute a rule 14 as defined in section 17A.2, subsection 11 . 15 Sec. 17. Section 441.21, Code 2013, is amended by 16 adding the following new subsection: 17 NEW SUBSECTION . 13. a. Beginning with valuations 18 established on or after January 1, 2014, mobile home 19 parks, manufactured home communities, land-leased 20 communities, assisted living facilities, and that 21 portion of a building that is used for human habitation 22 and a proportionate share of the land upon which 23 the building is situated, even if the use for human 24 habitation is not the primary use of the building, and 25 regardless of the number of dwelling units located 26 in the building, and not otherwise classified as 27 residential property, shall be valued as a separate 28 class of property known as multiresidential property 29 and, excluding properties referred to in section 30 427A.1, subsection 8, shall be assessed at a percentage 31 of its actual value, as determined in this subsection. 32 For valuations established for the assessment year 33 beginning January 1, 2014, the percentage of actual 34 value as equalized by the director of revenue as 35 provided in section 441.49 at which multiresidential 36 property shall be assessed shall be ninety percent. 37 For valuations established for the assessment year 38 beginning January 1, 2015, the percentage of actual 39 value as equalized by the director of revenue as 40 provided in section 441.49 at which multiresidential 41 property shall be assessed shall be eighty percent. 42 For valuations established for the assessment year 43 beginning January 1, 2016, the percentage of actual 44 value as equalized by the director of revenue as 45 provided in section 441.49 at which multiresidential 46 property shall be assessed shall be seventy percent. 47 For valuations established for the assessment year 48 beginning January 1, 2017, the percentage of actual 49 value as equalized by the director of revenue as 50 -13- SF295.1764.H (3) 85 md 13/ 42
provided in section 441.49 at which multiresidential 1 property shall be assessed shall be sixty percent. 2 For valuations established for the assessment year 3 beginning January 1, 2018, and each assessment year 4 thereafter, the percentage of actual value as equalized 5 by the director of revenue as provided in section 6 441.49 at which multiresidential property shall be 7 assessed shall be equal to the percentage of actual 8 value at which property assessed as residential 9 property is assessed under subsection 4 for the same 10 assessment year, after application of the limitations 11 on increases in residential property provided for in 12 this section. 13 b. Accordingly, the assessor may assign more than 14 one classification to a parcel of property that, in 15 part, satisfies the requirements of this subsection. 16 c. In no case, however, shall property that is 17 rented or leased to low-income individuals and families 18 as authorized by section 42 of the Internal Revenue 19 Code, and that is subject to assessment procedures 20 relating to section 42 property under section 441.21, 21 subsection 2, or a hotel, motel, inn, or other building 22 where rooms or dwelling units are usually rented for 23 less than one month be classified as multiresidential 24 property under this subsection. 25 d. As used in this subsection: 26 (1) “Assisted living facility” means property for 27 providing assisted living as defined in section 231C.2. 28 “Assisted living facility” also includes a health care 29 facility, as defined in section 135C.1, an elder group 30 home, as defined in section 231B.1, a child foster care 31 facility under chapter 237, or property used for a 32 hospice program as defined in section 135J.1. 33 (2) “Dwelling unit” means an apartment, group of 34 rooms, or single room which is occupied as separate 35 living quarters or, if vacant, is intended for 36 occupancy as separate living quarters, in which a 37 tenant can live and sleep separately from any other 38 persons in the building. 39 (3) “Land-leased community” means the same as 40 defined in sections 335.30A and 414.28A. 41 (4) “Manufactured home community” means the same as 42 a land-leased community. 43 (5) “Mobile home park” means the same as defined in 44 section 435.1. 45 Sec. 18. Section 558.46, subsection 5, Code 2013, 46 is amended to read as follows: 47 5. For the purposes of this section , “residential 48 property” includes commercial multiresidential property 49 as defined in section 441.21, subsection 13, consisting 50 -14- SF295.1764.H (3) 85 md 14/ 42
of three or more separate living quarters with at least 1 seventy-five percent of the space used for residential 2 purposes. 3 Sec. 19. APPLICABILITY. This division of this 4 Act applies to assessment years beginning on or after 5 January 1, 2014. 6 DIVISION IV 7 TELECOMMUNICATIONS COMPANY PROPERTY TAXATION 8 Sec. 20. Section 427A.1, subsection 1, paragraph h, 9 Code 2013, is amended to read as follows: 10 h. Property assessed by the department of revenue 11 pursuant to sections 428.24 to 428.29 , or chapters 12 433 , 434 , 437 , 437A , and 438 . 13 Sec. 21. Section 427A.1, subsection 1, Code 2013, 14 is amended by adding the following new paragraph: 15 NEW PARAGRAPH . 0i. Qualified telephone company 16 property that is used in the transaction of telegraph 17 and telephone business by a company that is subject to 18 assessment by the department of revenue pursuant to 19 chapter 433. “Qualified telephone company property” 20 means poles, aerial cable, underground cable, buried 21 cable, submarine and deep sea cable, intrabuilding 22 network cable, aerial wire, and conduit systems, all 23 within the meaning of the telecommunications companies 24 account provisions of 47 C.F.R. pt. 32, in effect on 25 the effective date of this division of this Act. 26 Sec. 22. Section 433.1, subsection 4, Code 2013, is 27 amended to read as follows: 28 4. The whole number of stations on each line, and 29 the value of the same , including furniture . 30 Sec. 23. Section 433.4, Code 2013, is amended to 31 read as follows: 32 433.4 Assessment. 33 The director of revenue shall on or before October 34 31 each year and in the same manner and subject to the 35 provisions for the assessment of property assessed 36 as commercial property by the local assessor under 37 chapters 427, 427A, 427B, 428, and 441 , proceed to find 38 the actual value of the property of these companies 39 in this state that is used by the companies in the 40 transaction of telegraph and telephone business , taking 41 into consideration the information obtained from the 42 statements required, and any further information the 43 director can obtain, using the same as a means for 44 determining the actual cash value of the property 45 of these companies within this state. The director 46 shall also take into consideration the valuation of 47 all property of these companies, including franchises 48 and the use of the property in connection with lines 49 outside the state, and making these deductions as may 50 -15- SF295.1764.H (3) 85 md 15/ 42
be necessary on account of extra value of property 1 outside the state as compared with the value of 2 property in the state, in order that the actual cash 3 value of the property of the company within this state 4 may be ascertained. The assessment shall include 5 all property of every kind and character whatsoever, 6 real, personal, or mixed, used by the companies in the 7 transaction of telegraph and telephone business; and 8 the The property so included in the assessment shall 9 not be taxed in any other manner than as provided in 10 this chapter . 11 Sec. 24. Section 441.21, subsection 5, Code 2013, 12 is amended to read as follows: 13 5. For valuations established as of January 1, 14 1979, commercial property and industrial property, 15 excluding properties referred to in section 427A.1, 16 subsection 8 , shall be assessed as a percentage of 17 the actual value of each class of property. The 18 percentage shall be determined for each class of 19 property by the director of revenue for the state in 20 accordance with the provisions of this section . For 21 valuations established as of January 1, 1979, the 22 percentage shall be the quotient of the dividend and 23 divisor as defined in this section . The dividend 24 for each class of property shall be the total actual 25 valuation for each class of property established for 26 1978, plus six percent of the amount so determined. 27 The divisor for each class of property shall be the 28 valuation for each class of property established for 29 1978, as reported by the assessors on the abstracts 30 of assessment for 1978, plus the amount of value 31 added to the total actual value by the revaluation 32 of existing properties in 1979 as equalized by the 33 director of revenue pursuant to section 441.49 . For 34 valuations established as of January 1, 1979, property 35 valued by the department of revenue pursuant to 36 chapters 428 , 433 , 437 , and 438 shall be considered 37 as one class of property and shall be assessed as a 38 percentage of its actual value. The percentage shall 39 be determined by the director of revenue in accordance 40 with the provisions of this section . For valuations 41 established as of January 1, 1979, the percentage 42 shall be the quotient of the dividend and divisor as 43 defined in this section . The dividend shall be the 44 total actual valuation established for 1978 by the 45 department of revenue, plus ten percent of the amount 46 so determined. The divisor for property valued by 47 the department of revenue pursuant to chapters 428 , 48 433 , 437 , and 438 shall be the valuation established 49 for 1978, plus the amount of value added to the total 50 -16- SF295.1764.H (3) 85 md 16/ 42
actual value by the revaluation of the property by 1 the department of revenue as of January 1, 1979. 2 For valuations established as of January 1, 1980, 3 commercial property and industrial property, excluding 4 properties referred to in section 427A.1, subsection 5 8 , shall be assessed at a percentage of the actual 6 value of each class of property. The percentage 7 shall be determined for each class of property by 8 the director of revenue for the state in accordance 9 with the provisions of this section . For valuations 10 established as of January 1, 1980, the percentage 11 shall be the quotient of the dividend and divisor as 12 defined in this section . The dividend for each class 13 of property shall be the dividend as determined for 14 each class of property for valuations established as 15 of January 1, 1979, adjusted by the product obtained 16 by multiplying the percentage determined for that year 17 by the amount of any additions or deletions to actual 18 value, excluding those resulting from the revaluation 19 of existing properties, as reported by the assessors 20 on the abstracts of assessment for 1979, plus four 21 percent of the amount so determined. The divisor 22 for each class of property shall be the total actual 23 value of all such property in 1979, as equalized by 24 the director of revenue pursuant to section 441.49 , 25 plus the amount of value added to the total actual 26 value by the revaluation of existing properties in 27 1980. The director shall utilize information reported 28 on the abstracts of assessment submitted pursuant 29 to section 441.45 in determining such percentage. 30 For valuations established as of January 1, 1980, 31 property valued by the department of revenue pursuant 32 to chapters 428 , 433 , 437 , and 438 shall be assessed 33 at a percentage of its actual value. The percentage 34 shall be determined by the director of revenue in 35 accordance with the provisions of this section . For 36 valuations established as of January 1, 1980, the 37 percentage shall be the quotient of the dividend and 38 divisor as defined in this section . The dividend shall 39 be the total actual valuation established for 1979 by 40 the department of revenue, plus eight percent of the 41 amount so determined. The divisor for property valued 42 by the department of revenue pursuant to chapters 428 , 43 433 , 437 , and 438 shall be the valuation established 44 for 1979, plus the amount of value added to the total 45 actual value by the revaluation of the property by 46 the department of revenue as of January 1, 1980. For 47 valuations established as of January 1, 1981, and 48 each year thereafter, the percentage of actual value 49 as equalized by the director of revenue as provided 50 -17- SF295.1764.H (3) 85 md 17/ 42
in section 441.49 at which commercial property and 1 industrial property, excluding properties referred to 2 in section 427A.1, subsection 8 , shall be assessed 3 shall be calculated in accordance with the methods 4 provided herein, except that any references to six 5 percent in this subsection shall be four percent. For 6 valuations established as of January 1, 1981, and 7 each year thereafter, the percentage of actual value 8 at which property valued by the department of revenue 9 pursuant to chapters 428 , 433 , 437 , and 438 shall be 10 assessed shall be calculated in accordance with the 11 methods provided herein, except that any references to 12 ten percent in this subsection shall be eight percent. 13 For valuations established on or after January 1, 2013, 14 property valued by the department of revenue pursuant 15 to chapter 433 shall be assessed at a percentage of 16 its actual value. For valuations established for 17 the assessment year beginning January 1, 2013, the 18 percentage of actual value at which property valued by 19 the department of revenue pursuant to chapter 433 shall 20 be assessed shall be eighty percent. For valuations 21 established for the assessment year beginning January 22 1, 2014, and each year thereafter, the percentage of 23 actual value at which property valued by the department 24 of revenue pursuant to chapter 433 shall be assessed 25 shall be sixty percent. Beginning with valuations 26 established as of January 1, 1979, and each year 27 thereafter, property valued by the department of 28 revenue pursuant to chapter 434 shall also be assessed 29 at a percentage of its actual value which percentage 30 shall be equal to the percentage determined by the 31 director of revenue for commercial property, industrial 32 property, or property valued by the department of 33 revenue pursuant to chapters 428 , 433 , 437 , and 438 , 34 whichever is lowest. 35 Sec. 25. Section 441.21, subsections 9 and 10, Code 36 2013, are amended to read as follows: 37 9. Not later than November 1, 1979, and November 38 1 of each subsequent year, the director shall certify 39 to the county auditor of each county the percentages 40 of actual value at which residential property, 41 agricultural property, commercial property, industrial 42 property, property valued by the department of 43 revenue under chapter 433, and property valued by 44 the department of revenue pursuant to chapters 428 , 45 433 , 434 , 437 , and 438 in each assessing jurisdiction 46 in the county shall be assessed for taxation. The 47 county auditor shall proceed to determine the assessed 48 values of agricultural property, residential property, 49 commercial property, industrial property, property 50 -18- SF295.1764.H (3) 85 md 18/ 42
valued by the department of revenue under chapter 1 433, and property valued by the department of revenue 2 pursuant to chapters 428 , 433 , 434 , 437 , and 438 by 3 applying such percentages to the current actual value 4 of such property, as reported to the county auditor by 5 the assessor, and the assessed values so determined 6 shall be the taxable values of such properties upon 7 which the levy shall be made. 8 10. The percentage of actual value computed by 9 the director for agricultural property, residential 10 property, commercial property, industrial property , 11 property valued by the department of revenue under 12 chapter 433, and property valued by the department of 13 revenue pursuant to chapters 428 , 433 , 434 , 437 , and 438 14 and used to determine assessed values of those classes 15 of property does not constitute a rule as defined in 16 section 17A.2, subsection 11 . 17 Sec. 26. Section 476.1D, subsection 10, Code 2013, 18 is amended by striking the subsection. 19 Sec. 27. EFFECTIVE DATE. The sections of this 20 division of this Act amending section 441.21, being 21 deemed of immediate importance, take effect upon 22 enactment. 23 Sec. 28. APPLICABILITY. 24 1. Except as provided in subsection 2, this 25 division of this Act applies to assessment years 26 beginning on or after January 1, 2014. 27 2. The sections of this division of this Act 28 amending section 441.21 apply retroactively to 29 assessment years beginning on or after January 1, 30 2013. 31 DIVISION V 32 TAXPAYERS TRUST FUND 33 Sec. 29. Section 8.54, subsection 5, Code 2013, is 34 amended by striking the subsection. 35 Sec. 30. Section 8.55, subsection 2, Code 2013, is 36 amended to read as follows: 37 2. The maximum balance of the fund is the amount 38 equal to two and one-half percent of the adjusted 39 revenue estimate for the fiscal year. If the amount of 40 moneys in the Iowa economic emergency fund is equal to 41 the maximum balance, moneys in excess of this amount 42 shall be distributed as follows: 43 a. The first sixty million dollars of the 44 difference between the actual net revenue for the 45 general fund of the state for the fiscal year and the 46 adjusted revenue estimate for the fiscal year shall be 47 transferred to the taxpayers trust fund. 48 b. The remainder of the excess, if any, shall be 49 transferred to the general fund of the state. 50 -19- SF295.1764.H (3) 85 md 19/ 42
Sec. 31. Section 8.57E, subsection 2, Code 2013, is 1 amended to read as follows: 2 2. Moneys in the taxpayers trust fund shall only 3 be used pursuant to appropriations or transfers made 4 by the general assembly for tax relief. During each 5 fiscal year beginning on or after July 1, 2014, in 6 which the balance of the taxpayers trust fund equals or 7 exceeds thirty million dollars, there is transferred 8 from the taxpayers trust fund to the Iowa taxpayers 9 trust fund tax credit fund created in section 422.11E, 10 the entire balance of the taxpayers trust fund to be 11 used for the Iowa taxpayers trust fund tax credit in 12 accordance with section 422.11E, subsection 5. 13 Sec. 32. Section 8.58, Code 2013, is amended to 14 read as follows: 15 8.58 Exemption from automatic application. 16 1. To the extent that moneys appropriated under 17 section 8.57 do not result in moneys being credited 18 to the general fund under section 8.55, subsection 2 , 19 moneys Moneys appropriated under in section 8.57 and 20 moneys contained in the cash reserve fund, rebuild 21 Iowa infrastructure fund, environment first fund, Iowa 22 economic emergency fund, and taxpayers trust fund shall 23 not be considered in the application of any formula, 24 index, or other statutory triggering mechanism which 25 would affect appropriations, payments, or taxation 26 rates, contrary provisions of the Code notwithstanding. 27 2. To the extent that moneys appropriated under 28 section 8.57 do not result in moneys being credited 29 to the general fund under section 8.55, subsection 2 , 30 moneys Moneys appropriated under in section 8.57 and 31 moneys contained in the cash reserve fund, rebuild 32 Iowa infrastructure fund, environment first fund, Iowa 33 economic emergency fund, and taxpayers trust fund shall 34 not be considered by an arbitrator or in negotiations 35 under chapter 20 . 36 Sec. 33. EFFECTIVE UPON ENACTMENT. This division 37 of this Act, being deemed of immediate importance, 38 takes effect upon enactment. 39 Sec. 34. RETROACTIVE APPLICABILITY. This division 40 of this Act applies retroactively to July 1, 2012, to 41 moneys attributed to fiscal years beginning on or after 42 July 1, 2012. 43 DIVISION VI 44 IOWA TAXPAYERS TRUST FUND TAX CREDIT 45 Sec. 35. TAXPAYERS TRUST FUND —— IOWA TAXPAYERS 46 TRUST FUND TAX CREDIT TRANSFER. During the fiscal 47 year beginning July 1, 2013, there is transferred from 48 the taxpayers trust fund created in section 8.57E to 49 the Iowa taxpayers trust fund tax credit fund created 50 -20- SF295.1764.H (3) 85 md 20/ 42
in section 422.11E, an amount equal to the sum of 1 the balance of the taxpayers trust fund as determined 2 after the close of the fiscal year beginning July 1, 3 2012, and ending June 30, 2013, including the amount 4 transferred for that fiscal year to the taxpayers trust 5 fund from the Iowa economic emergency fund created 6 in section 8.55 in the fiscal year beginning July 1, 7 2013, and ending June 30, 2014, to be used for the Iowa 8 taxpayers trust fund tax credit in accordance with 9 section 422.11E, subsection 5. 10 Sec. 36. Section 257.21, unnumbered paragraph 2, 11 Code 2013, is amended to read as follows: 12 The instructional support income surtax shall be 13 imposed on the state individual income tax for the 14 calendar year during which the school’s budget year 15 begins, or for a taxpayer’s fiscal year ending during 16 the second half of that calendar year and after the 17 date the board adopts a resolution to participate 18 in the program or the first half of the succeeding 19 calendar year, and shall be imposed on all individuals 20 residing in the school district on the last day of 21 the applicable tax year. As used in this section , 22 “state individual income tax” means the taxes computed 23 under section 422.5 , less the amounts of nonrefundable 24 credits allowed under chapter 422, division II , except 25 for the Iowa taxpayers trust fund tax credit allowed 26 under section 422.11E . 27 Sec. 37. NEW SECTION . 422.11E Iowa taxpayers trust 28 fund tax credit. 29 1. For purposes of this section, unless the context 30 otherwise requires: 31 a. “Eligible individual” means, with respect to 32 a tax year, an individual who makes and files an 33 individual income tax return pursuant to section 34 422.13. “Eligible individual” does not include 35 an estate or trust, or an individual for whom an 36 individual income tax return was not timely filed, 37 including extensions. 38 b. “Unclaimed tax credit” means, with respect to 39 a tax year, the aggregate amount by which the Iowa 40 taxpayers trust fund tax credits that were eligible to 41 be claimed by eligible individuals, if any, exceeds the 42 Iowa taxpayers trust fund tax credits actually claimed 43 by eligible individuals, if any. 44 2. The taxes imposed under this division, less the 45 credits allowed under this division except the credits 46 for withheld tax and estimated tax paid in section 47 422.16, shall be reduced by an Iowa taxpayers trust 48 fund tax credit to an eligible individual for the tax 49 year beginning January 1 immediately preceding July 1 50 -21- SF295.1764.H (3) 85 md 21/ 42
of any fiscal year during which a transfer, if any, is 1 made from the taxpayers trust fund in section 8.57E to 2 the Iowa taxpayers trust fund tax credit fund created 3 in this section. 4 3. The credit shall be equal to the quotient of 5 the amount transferred to the Iowa taxpayers trust 6 fund tax credit fund in the applicable fiscal year, 7 divided by the number of eligible individuals for the 8 tax year immediately preceding the tax year for which 9 the credit in this section is allowed, as determined 10 by the director of revenue in accordance with this 11 section, rounded down to the nearest whole dollar. The 12 department of revenue shall draft the income tax form 13 for any tax year in which a credit will be allowed 14 under this section to provide the information and space 15 necessary for eligible individuals to claim the credit. 16 4. Any credit in excess of the taxpayer’s liability 17 for the tax year is not refundable and shall not be 18 credited to the tax liability for any following year 19 or carried back to a tax year prior to the tax year in 20 which the taxpayer claims the credit. 21 5. a. There is established within the state 22 treasury under the control of the department an Iowa 23 taxpayers trust fund tax credit fund consisting of any 24 moneys transferred by the general assembly by law from 25 the taxpayers trust fund created in section 8.57E for 26 purposes of the credit provided in this section. For 27 the fiscal year beginning July 1, 2013, and for each 28 fiscal year thereafter, the department shall transfer 29 from the Iowa taxpayers trust fund tax credit fund 30 to the general fund of the state, the lesser of the 31 balance of the Iowa taxpayers trust fund tax credit 32 fund or an amount of money equal to the Iowa taxpayers 33 trust fund tax credits claimed in that fiscal year, if 34 any. Any moneys in the Iowa taxpayers trust fund tax 35 credit fund which represent unclaimed tax credits shall 36 immediately revert to the taxpayers trust fund created 37 in section 8.57E. Interest or earnings on moneys in 38 the Iowa taxpayers trust fund tax credit fund shall be 39 credited to the taxpayers trust fund created in section 40 8.57E. 41 b. The moneys transferred to the general fund of 42 the state in accordance with this subsection shall not 43 be considered new revenues for purposes of the state 44 general fund expenditure limitation under section 8.54 45 but instead as replacement of a like amount included in 46 the expenditure limitation for the fiscal year in which 47 the transfer is made. 48 Sec. 38. Section 422D.2, Code 2013, is amended to 49 read as follows: 50 -22- SF295.1764.H (3) 85 md 22/ 42
422D.2 Local income surtax. 1 A county may impose by ordinance a local income 2 surtax as provided in section 422D.1 at the rate set 3 by the board of supervisors, of up to one percent, 4 on the state individual income tax of each individual 5 residing in the county at the end of the individual’s 6 applicable tax year. However, the cumulative total of 7 the percents of income surtax imposed on any taxpayer 8 in the county shall not exceed twenty percent. The 9 reason for imposing the surtax and the amount needed 10 shall be set out in the ordinance. The surtax rate 11 shall be set to raise only the amount needed. For 12 purposes of this section , “state individual income tax” 13 means the tax computed under section 422.5 , less the 14 amounts of nonrefundable credits allowed under chapter 15 422, division II , except for the Iowa taxpayers trust 16 fund tax credit allowed under section 422.11E . 17 Sec. 39. EFFECTIVE UPON ENACTMENT. This division 18 of this Act, being deemed of immediate importance, 19 takes effect upon enactment. 20 Sec. 40. RETROACTIVE APPLICABILITY. This division 21 of this Act applies retroactively to January 1, 2013, 22 for tax years beginning on or after that date. 23 DIVISION VII 24 PROPERTY ASSESSMENT APPEALS 25 Sec. 41. Section 421.1A, subsection 6, Code 2013, 26 is amended to read as follows: 27 6. The members of the property assessment appeal 28 board shall receive compensation from the state 29 commensurate with the salary of a district judge 30 through December 31, 2013 . The members of the board 31 shall be considered state employees for purposes of 32 salary and benefits. The members of the board and 33 any employees of the board, when required to travel 34 in the discharge of official duties, shall be paid 35 their actual and necessary expenses incurred in the 36 performance of duties. 37 Sec. 42. Section 421.1A, subsection 7, Code 2013, 38 is amended by striking the subsection. 39 Sec. 43. Section 441.21, subsection 3, Code 2013, 40 is amended to read as follows: 41 3. a. “Actual value” , “taxable value” , or “assessed 42 value” as used in other sections of the Code in 43 relation to assessment of property for taxation shall 44 mean the valuations as determined by this section ; 45 however, other provisions of the Code providing special 46 methods or formulas for assessing or valuing specified 47 property shall remain in effect, but this section 48 shall be applicable to the extent consistent with such 49 provisions. The assessor and department of revenue 50 -23- SF295.1764.H (3) 85 md 23/ 42
shall disclose at the written request of the taxpayer 1 all information in any formula or method used to 2 determine the actual value of the taxpayer’s property. 3 b. The burden of proof shall be upon any 4 complainant attacking such valuation as excessive, 5 inadequate, inequitable, or capricious; however, in 6 protest or appeal proceedings when the complainant 7 offers competent evidence by at least two disinterested 8 witnesses that the market value of the property is less 9 than the market value determined by the assessor, the 10 burden of proof thereafter shall be upon the officials 11 or persons seeking to uphold such valuation to be 12 assessed. 13 Sec. 44. Section 441.35, subsection 2, Code 2013, 14 is amended to read as follows: 15 2. In any year after the year in which an 16 assessment has been made of all of the real estate 17 in any taxing district, the board of review shall 18 meet as provided in section 441.33 , and where the 19 board finds the same has changed in value, the board 20 shall revalue and reassess any part or all of the 21 real estate contained in such taxing district, and 22 in such case, the board shall determine the actual 23 value as of January 1 of the year of the revaluation 24 and reassessment and compute the taxable value 25 thereof. Any aggrieved taxpayer may petition for 26 a revaluation of the taxpayer’s property, but no 27 reduction or increase shall be made for prior years. 28 If the assessment of any such property is raised, or 29 any property is added to the tax list by the board, 30 the clerk shall give notice in the manner provided in 31 section 441.36 . However, if the assessment of all 32 property in any taxing district is raised, the board 33 may instruct the clerk to give immediate notice by one 34 publication in one of the official newspapers located 35 in the taxing district, and such published notice 36 shall take the place of the mailed notice provided for 37 in section 441.36 , but all other provisions of that 38 section shall apply. The decision of the board as to 39 the foregoing matters shall be subject to appeal to the 40 property assessment appeal board within the same time 41 and in the same manner as provided in section 441.37A 42 and to the district court within the same time and in 43 the same manner as provided in section 441.38 . 44 Sec. 45. Section 441.37, subsection 1, paragraphs a 45 and b, Code 2013, are amended to read as follows: 46 a. Any property owner or aggrieved taxpayer who is 47 dissatisfied with the owner’s or taxpayer’s assessment 48 may file a protest against such assessment with the 49 board of review on or after April 16, to and including 50 -24- SF295.1764.H (3) 85 md 24/ 42
May 5, of the year of the assessment. In any county 1 which has been declared to be a disaster area by proper 2 federal authorities after March 1 and prior to May 20 3 of said year of assessment, the board of review shall 4 be authorized to remain in session until June 15 and 5 the time for filing a protest shall be extended to and 6 include the period from May 25 to June 5 of such year. 7 Said The protest shall be in writing and signed by the 8 one protesting or by the protester’s duly authorized 9 agent. The taxpayer may have an oral hearing thereon 10 on the protest if request therefor for the oral hearing 11 is made in writing is made at the time of filing the 12 protest. Said The protest must be confined to one or 13 more of the following grounds: 14 (1) For odd-numbered assessment years and for 15 even-numbered assessment years for property that was 16 reassessed in such even-numbered assessment year: 17 (a) That said assessment is not equitable as 18 compared with assessments of other like property in 19 the taxing district assessing jurisdiction . When this 20 ground is relied upon as the basis of a protest the 21 legal description and assessments of a representative 22 number of comparable properties, as described by the 23 aggrieved taxpayer shall be listed on the protest, 24 otherwise said protest shall not be considered on this 25 ground consideration shall be given to whether the 26 other like property in the assessing jurisdiction was 27 appraised using a different appraisal methodology than 28 the methodology used to appraise the property that is 29 the subject of the protest . 30 (2) (b) That the property is assessed for more 31 than the value authorized by law , stating . When 32 this ground is relied upon, the specific amount which 33 the protesting party believes the property to be 34 overassessed, and the amount which the party considers 35 to be its actual value and the amount the party 36 considers a fair assessment shall be stated . 37 (3) (c) That the property is not assessable, is 38 exempt from taxes, or is misclassified and stating the 39 reasons for the protest. 40 (4) (d) That there is an error in the assessment 41 and state the specific alleged error. When this ground 42 is relied upon, it may include but is not limited to 43 listing errors, clerical or mathematical errors, or 44 other errors that result in an error in the assessment. 45 (5) (e) That there is fraud in the assessment 46 which shall be specifically stated. 47 (2) For even-numbered assessment years, when the 48 property has not been reassessed in such even-numbered 49 assessment year, that there has been a decrease in the 50 -25- SF295.1764.H (3) 85 md 25/ 42
value of the property from the previous reassessment 1 year. When this ground is relied upon, the decrease in 2 value shall be shown by comparing the market value of 3 the property as of January 1 of the current assessment 4 year and the actual value of the property for the 5 previous reassessment year. Such protest shall be 6 in the same manner as described in this section and 7 shall be reviewed by the local board of review pursuant 8 to section 441.35, subsection 2, but no reduction or 9 increase shall be made for prior years. 10 b. In addition to the above, the property owner 11 may protest annually to the board of review under 12 the provisions of section 441.35 , but such protest 13 shall be in the same manner and upon the same terms as 14 heretofore prescribed in this section . The burden of 15 proof for all protests filed under this section shall 16 be as stated in section 441.21, subsection 3, paragraph 17 “b” . 18 Sec. 46. Section 441.37A, subsection 1, paragraph 19 b, Code 2013, is amended to read as follows: 20 b. For an appeal to the property assessment appeal 21 board to be valid, written notice must be filed by 22 the party appealing the decision with the secretary 23 of the property assessment appeal board within twenty 24 days after the date the board of review’s letter of 25 disposition of the appeal is postmarked to the party 26 making the protest adjournment of the local board of 27 review or May 31, whichever is later . The written 28 notice of appeal shall include a petition setting forth 29 the basis of the appeal and the relief sought. No new 30 grounds in addition to those set out in the protest 31 to the local board of review as provided in section 32 441.37 can be pleaded, but additional evidence to 33 sustain those grounds may be introduced. The assessor 34 shall have the same right to appeal to the assessment 35 appeal board as an individual taxpayer, public body, or 36 other public officer as provided in section 441.42 . An 37 appeal to the board is a contested case under chapter 38 17A . 39 Sec. 47. Section 441.37A, subsection 2, paragraph 40 a, Code 2013, is amended to read as follows: 41 a. A party to the appeal may request a hearing or 42 the appeal may proceed without a hearing. If a hearing 43 is requested, the appellant and the local board of 44 review from which the appeal is taken shall be given 45 at least thirty days’ written notice by the property 46 assessment appeal board of the date the appeal shall be 47 heard and the local board of review may be present and 48 participate at such hearing. Notice to all affected 49 taxing districts shall be deemed to have been given 50 -26- SF295.1764.H (3) 85 md 26/ 42
when written notice is provided to the local board of 1 review. The requirement of thirty days’ written notice 2 may be waived by mutual agreement of all parties to 3 the appeal. Failure by the appellant to appear at 4 the property assessment appeal board hearing shall be 5 grounds for result in dismissal of the appeal unless a 6 continuance is granted to the appellant by the board 7 following a showing of good cause for the appellant’s 8 failure to appear . If an appeal is dismissed for 9 failure to appear, the property assessment appeal board 10 shall have no jurisdiction to consider any subsequent 11 appeal on the appellant’s protest. 12 Sec. 48. Section 441.37A, subsection 3, paragraph 13 a, Code 2013, is amended to read as follows: 14 a. The board member considering the appeal shall 15 determine anew all questions arising before the local 16 board of review which relate to the liability of 17 the property to assessment or the amount thereof. 18 All of the evidence shall be considered and there 19 shall be no presumption as to the correctness of the 20 valuation of assessment appealed from. The burden 21 of proof for all appeals before the board shall be 22 as stated in section 441.21, subsection 3, paragraph 23 “b” . The property assessment appeal board shall make a 24 decision in each appeal filed with the board. If the 25 appeal is considered by less than a majority of the 26 board, the determination made by that member shall be 27 forwarded to the full board for approval, rejection, or 28 modification. If the initial determination is rejected 29 by the board, it shall be returned for reconsideration 30 to the board member making the initial determination. 31 Any deliberation of the board regarding an initial 32 determination shall be confidential. 33 Sec. 49. REPEAL. 2005 Iowa Acts, chapter 150, 34 section 134, is repealed. 35 Sec. 50. EFFECTIVE UPON ENACTMENT. This division 36 of this Act, being deemed of immediate importance, 37 takes effect upon enactment. 38 Sec. 51. APPLICABILITY. The following provisions 39 of this division of this Act apply to assessment years 40 beginning on or after January 1, 2014: 41 1. The section of this division of this Act 42 amending section 441.37. 43 2. The section of this division of this Act 44 amending section 441.35. 45 DIVISION VIII 46 COUNTY AND CITY BUDGET LIMITATION 47 Sec. 52. Section 23A.2, subsection 10, paragraph h, 48 Code 2013, is amended to read as follows: 49 h. The performance of an activity listed in 50 -27- SF295.1764.H (3) 85 md 27/ 42
section 331.424 , Code 2013 as a service for which a 1 supplemental levy county may be certified include in 2 its budget . 3 Sec. 53. Section 28M.5, subsection 2, Code 2013, is 4 amended to read as follows: 5 2. If a regional transit district budget allocates 6 revenue responsibilities to the board of supervisors 7 of a participating county, the amount of the regional 8 transit district levy that is the responsibility of the 9 participating county shall be deducted from the maximum 10 rates amount of taxes authorized to be levied by the 11 county pursuant to section 331.423, subsections 1 and 12 2 subsection 3, paragraph “b” and “c” , as applicable, 13 unless the county meets its revenue responsibilities as 14 allocated in the budget from other available revenue 15 sources. However, for a regional transit district 16 that includes a county with a population of less than 17 three hundred thousand, the amount of the regional 18 transit district levy that is the responsibility of 19 such participating county shall be deducted from the 20 maximum rate amount of taxes authorized to be levied 21 by the county pursuant to section 331.423, subsection 22 1 3, paragraph “b” . 23 Sec. 54. Section 29C.17, subsection 2, paragraph a, 24 Code 2013, is amended by striking the paragraph. 25 Sec. 55. Section 123.38, subsection 2, Code 2013, 26 is amended to read as follows: 27 2. Any licensee or permittee, or the licensee’s 28 or permittee’s executor or administrator, or any 29 person duly appointed by the court to take charge of 30 and administer the property or assets of the licensee 31 or permittee for the benefit of the licensee’s or 32 permittee’s creditors, may voluntarily surrender a 33 license or permit to the division. When a license 34 or permit is surrendered the division shall notify 35 the local authority, and the division or the local 36 authority shall refund to the person surrendering the 37 license or permit, a proportionate amount of the fee 38 received by the division or the local authority for 39 the license or permit as follows: if a license or 40 permit is surrendered during the first three months 41 of the period for which it was issued, the refund 42 shall be three-fourths of the amount of the fee; 43 if surrendered more than three months but not more 44 than six months after issuance, the refund shall be 45 one-half of the amount of the fee; if surrendered more 46 than six months but not more than nine months after 47 issuance, the refund shall be one-fourth of the amount 48 of the fee. No refund shall be made, however, for 49 any special liquor permit, nor for a liquor control 50 -28- SF295.1764.H (3) 85 md 28/ 42
license, wine permit, or beer permit surrendered more 1 than nine months after issuance. For purposes of this 2 subsection, any portion of license or permit fees 3 used for the purposes authorized in section 331.424, 4 subsection 1 , paragraph “a” , subparagraphs (1) and 5 (2), Code 2013, and in section 331.424A , shall not be 6 deemed received either by the division or by a local 7 authority. No refund shall be made to any licensee or 8 permittee, upon the surrender of the license or permit, 9 if there is at the time of surrender, a complaint filed 10 with the division or local authority, charging the 11 licensee or permittee with a violation of this chapter . 12 If upon a hearing on a complaint the license or permit 13 is not revoked or suspended, then the licensee or 14 permittee is eligible, upon surrender of the license 15 or permit, to receive a refund as provided in this 16 section ; but if the license or permit is revoked or 17 suspended upon hearing the licensee or permittee is not 18 eligible for the refund of any portion of the license 19 or permit fee. 20 Sec. 56. Section 218.99, Code 2013, is amended to 21 read as follows: 22 218.99 Counties to be notified of patients’ personal 23 accounts. 24 The administrator in control of a state institution 25 shall direct the business manager of each institution 26 under the administrator’s jurisdiction which is 27 mentioned in section 331.424, subsection 1 , paragraph 28 “a” , subparagraphs (1) and (2), and for which services 29 are paid under section 331.424A , to quarterly inform 30 the county of legal settlement’s entity designated to 31 perform the county’s central point of coordination 32 process of any patient or resident who has an amount 33 in excess of two hundred dollars on account in the 34 patients’ personal deposit fund and the amount on 35 deposit. The administrators shall direct the business 36 manager to further notify the entity designated to 37 perform the county’s central point of coordination 38 process at least fifteen days before the release of 39 funds in excess of two hundred dollars or upon the 40 death of the patient or resident. If the patient or 41 resident has no county of legal settlement, notice 42 shall be made to the director of human services and the 43 administrator in control of the institution involved. 44 Sec. 57. Section 331.263, subsection 2, Code 2013, 45 is amended to read as follows: 46 2. The governing body of the community commonwealth 47 shall have the authority to levy county taxes and shall 48 have the authority to levy city taxes to the extent the 49 city tax levy authority is transferred by the charter 50 -29- SF295.1764.H (3) 85 md 29/ 42
to the community commonwealth. A city participating 1 in the community commonwealth shall transfer a portion 2 of the city’s tax levy authorized under section 384.1 3 or 384.12 , whichever is applicable, to the governing 4 body of the community commonwealth. The maximum 5 rates amount of taxes authorized to be levied under 6 sections section 384.1 and the maximum amount of taxes 7 authorized to be levied under section 384.12 by a city 8 participating in the community commonwealth shall be 9 reduced by an amount equal to the rates of the same or 10 similar taxes levied in the city by the governing body 11 of the community commonwealth. 12 Sec. 58. Section 331.301, subsection 12, Code 2013, 13 is amended to read as follows: 14 12. The board of supervisors may credit funds to 15 a reserve for the purposes authorized by subsection 16 11 of this section ; section 331.424, subsection 1 , 17 paragraph “a” , subparagraph (5); and section 331.441, 18 subsection 2 , paragraph “b” . Moneys credited to the 19 reserve, and interest earned on such moneys, shall 20 remain in the reserve until expended for purposes 21 authorized by subsection 11 of this section ; section 22 331.424, subsection 1 , paragraph “a” , subparagraph (5); 23 or section 331.441, subsection 2 , paragraph “b” . 24 Sec. 59. Section 331.421, subsections 1 and 10, 25 Code 2013, are amended by striking the subsections. 26 Sec. 60. Section 331.421, Code 2013, is amended by 27 adding the following new subsection: 28 NEW SUBSECTION . 7A. “Item” means a budgeted 29 expenditure, appropriation, or cash reserve from a 30 fund for a service area, program, program element, or 31 purpose. 32 Sec. 61. Section 331.422, unnumbered paragraph 1, 33 Code 2013, is amended to read as follows: 34 Subject to this section and sections 331.423 through 35 331.426 331.424 or as otherwise provided by state law, 36 the board of each county shall certify property taxes 37 annually at its March session to be levied for county 38 purposes as follows: 39 Sec. 62. Section 331.423, Code 2013, is amended by 40 striking the section and inserting in lieu thereof the 41 following: 42 331.423 Property tax dollars —— maximums. 43 1. Annually, the board shall determine separate 44 property tax levy limits to pay for general county 45 services and rural county services in accordance with 46 this section. The property tax levies separately 47 certified for general county services and rural county 48 services under section 331.434 shall not raise property 49 tax dollars that exceed the amount determined under 50 -30- SF295.1764.H (3) 85 md 30/ 42
this section. 1 2. For purposes of this section and section 2 331.423B, unless the context otherwise requires: 3 a. “Annual growth factor” means an index, expressed 4 as a percentage, determined by the department of 5 management by January 1 of the calendar year in which 6 the budget year begins. In determining the annual 7 growth factor, the department shall calculate the 8 average of the preceding twelve-month percentage 9 change, which shall be computed on a monthly basis, 10 in the midwest consumer price index, ending with the 11 percentage change for the month of November. The 12 department shall then add that average percentage 13 change to one hundred percent. In no case, however, 14 shall the annual growth factor exceed one hundred four 15 percent. 16 b. “Boundary adjustment” means annexation, 17 severance, incorporation, or discontinuance as those 18 terms are defined in section 368.1. 19 c. “Budget year” is the fiscal year beginning 20 during the calendar year in which a budget is 21 certified. 22 d. “Current fiscal year” is the fiscal year 23 ending during the calendar year in which a budget is 24 certified. 25 e. “Net new valuation taxes” means the amount of 26 property tax dollars equal to the current fiscal year’s 27 levy rate in the county for general county services or 28 for rural county services, as applicable, multiplied by 29 the increase from the current fiscal year to the budget 30 year in taxable valuation due to the following: 31 (1) Net new construction, excluding all incremental 32 valuation that is released in any one year from either 33 a division of revenue under section 260E.4 or 357H.9, 34 or an urban renewal area for which taxes were being 35 divided under section 403.19 if the property for 36 the valuation being released remains subject to the 37 division of revenue under section 260E.4 or 357H.9, or 38 remains part of the urban renewal area that is subject 39 to a division of revenue under section 403.19. 40 (2) Additions or improvements to existing 41 structures. 42 (3) Remodeling of existing structures for which a 43 building permit is required. 44 (4) Net boundary adjustment. 45 (5) A municipality no longer dividing tax revenues 46 in an urban renewal area as provided in section 403.19, 47 a community college no longer dividing revenues as 48 provided in section 260E.4, or a rural improvement zone 49 no longer dividing revenues as provided in section 50 -31- SF295.1764.H (3) 85 md 31/ 42
357H.9. 1 (6) That portion of taxable property located in an 2 urban revitalization area on which an exemption was 3 allowed and such exemption has expired. 4 3. a. For the fiscal year beginning July 1, 2014, 5 and subsequent fiscal years, the maximum amount of 6 property tax dollars which may be certified for levy by 7 a county for general county services and rural county 8 services shall be the maximum property tax dollars 9 calculated under paragraphs “b” and “c” , respectively. 10 b. The maximum property tax dollars that may be 11 levied for general county services is an amount equal 12 to the sum of the following: 13 (1) The annual growth factor times the current 14 fiscal year’s maximum property tax dollars for general 15 county services. 16 (2) The amount of net new valuation taxes in the 17 county. 18 c. The maximum property tax dollars that may be 19 levied for rural county services is an amount equal to 20 the sum of the following: 21 (1) The annual growth factor times the current 22 fiscal year’s maximum property tax dollars for rural 23 county services. 24 (2) The amount of net new valuation taxes in the 25 unincorporated area of the county. 26 4. a. For purposes of calculating maximum property 27 tax dollars for general county services for the fiscal 28 year beginning July 1, 2014, only, the term “current 29 fiscal year’s maximum property tax dollars” shall mean 30 the total amount of property tax dollars certified by 31 the county for general county services for the fiscal 32 year beginning July 1, 2013. 33 b. For purposes of calculating maximum property tax 34 dollars for rural county services for the fiscal year 35 beginning July 1, 2014, only, the term “current fiscal 36 year’s maximum property tax dollars” shall mean the 37 total amount of property tax dollars certified by the 38 county for rural county services for the fiscal year 39 beginning July 1, 2013. 40 5. Property taxes certified for mental health, 41 mental retardation, and developmental disabilities 42 services, the emergency services fund in section 43 331.424C, the debt service fund in section 331.430, 44 any capital projects fund established by the county 45 for deposit of bond, loan, or note proceeds, and 46 any temporary increase approved pursuant to section 47 331.424, are not included in the maximum amount of 48 property tax dollars that may be certified for a budget 49 year under subsection 3. 50 -32- SF295.1764.H (3) 85 md 32/ 42
6. The department of management, in consultation 1 with the county finance committee, shall adopt rules 2 to administer this section. The department shall 3 prescribe forms to be used by counties when making 4 calculations required by this section. 5 Sec. 63. NEW SECTION . 331.423B Ending fund 6 balance. 7 1. a. Budgeted ending fund balances for a budget 8 year in excess of twenty-five percent of budgeted 9 expenditures in either the general fund or rural 10 services fund for that budget year shall be explicitly 11 reserved or designated for a specific purpose. 12 b. A county is encouraged, but not required, to 13 reduce ending fund balances for the budget year to an 14 amount equal to approximately twenty-five percent of 15 budgeted expenditures and transfers from the general 16 fund and rural services fund for that budget year 17 unless a decision is certified by the state appeal 18 board ordering a reduction in the ending fund balance 19 of any of those funds. 20 c. In a protest to the county budget under section 21 331.436, the county shall have the burden of proving 22 that the budgeted balances in excess of twenty-five 23 percent are reasonably likely to be appropriated for 24 the explicitly reserved or designated specific purpose. 25 The excess budgeted balance for the specific purpose 26 shall be considered an increase in an item in the 27 budget for purposes of section 24.28. 28 2. a. For a county that has, as of June 30, 2013, 29 reduced its actual ending fund balance to less than 30 twenty-five percent of actual expenditures, additional 31 property taxes may be computed and levied as provided 32 in this subsection. The additional property tax levy 33 amount is an amount not to exceed twenty-five percent 34 of actual expenditures from the general fund and rural 35 services fund for the fiscal year beginning July 1, 36 2012, minus the combined ending fund balances for those 37 funds for that year. 38 b. The amount of the additional property taxes 39 shall be apportioned between the general fund and the 40 rural services fund. However, the amount apportioned 41 for general county services and for rural county 42 services shall not exceed for each fund twenty-five 43 percent of actual expenditures for the fiscal year 44 beginning July 1, 2012. 45 c. All or a portion of additional property tax 46 dollars may be levied for the purpose of increasing 47 cash reserves for general county services and rural 48 county services in the budget year. The additional 49 property tax dollars authorized under this subsection 50 -33- SF295.1764.H (3) 85 md 33/ 42
but not levied may be carried forward as unused ending 1 fund balance taxing authority until and for the fiscal 2 year beginning July 1, 2019. The amount carried 3 forward shall not exceed twenty-five percent of the 4 maximum amount of property tax dollars available in 5 the current fiscal year. Additionally, property taxes 6 that are levied as unused ending fund balance taxing 7 authority under this subsection may be the subject of 8 a protest under section 331.436, and the amount will 9 be considered an increase in an item in the budget for 10 purposes of section 24.28. The amount of additional 11 property taxes levied under this subsection shall not 12 be included in the computation of the maximum amount of 13 property tax dollars which may be certified and levied 14 under section 331.423. 15 Sec. 64. Section 331.424, Code 2013, is amended by 16 striking the section and inserting in lieu thereof the 17 following: 18 331.424 Authority to levy beyond maximum property 19 tax dollars. 20 1. The board may certify additions to the maximum 21 amount of property tax dollars to be levied for 22 a period of time not to exceed two years if the 23 proposition has been submitted at a special election 24 and received a favorable majority of the votes cast on 25 the proposition. 26 2. The special election is subject to the 27 following: 28 a. The board must give at least thirty-two days’ 29 notice to the county commissioner of elections that the 30 special election is to be held. In no case, however, 31 shall a notice be given to the county commissioner 32 of elections after December 31 for an election on a 33 proposition to exceed the statutory limits during the 34 fiscal year beginning in the next calendar year. 35 b. The special election shall be conducted by the 36 county commissioner of elections in accordance with 37 law. 38 c. The proposition to be submitted shall be 39 substantially in the following form: 40 Vote “yes” or “no” on the following: Shall the 41 county of _______ levy for an additional $_______ each 42 year for ___ years beginning July 1, _____, in excess 43 of the statutory limits otherwise applicable for the 44 (general county services or rural services) fund? 45 d. The canvass shall be held beginning at 1:00 p.m. 46 on the second day which is not a holiday following the 47 special election. 48 e. Notice of the special election shall be 49 published at least once in a newspaper as specified 50 -34- SF295.1764.H (3) 85 md 34/ 42
in section 331.305 prior to the date of the special 1 election. The notice shall appear as early as 2 practicable after the board has voted to submit a 3 proposition to the voters to levy additional property 4 tax dollars. 5 3. Registered voters in the county may vote on the 6 proposition to increase property taxes for the general 7 fund in excess of the statutory limit. Registered 8 voters residing outside the corporate limits of a 9 city within the county may vote on the proposition to 10 increase property taxes for the rural services fund in 11 excess of the statutory limit. 12 4. The amount of additional property tax dollars 13 certified under this section shall not be included in 14 the computation of the maximum amount of property tax 15 dollars which may be certified and levied under section 16 331.423. 17 Sec. 65. Section 331.424A, subsection 4, Code 2013, 18 is amended to read as follows: 19 4. For the fiscal year beginning July 1, 1996, 20 and for each subsequent fiscal year, the county shall 21 certify a levy for payment of services. For each 22 fiscal year, county revenues from taxes imposed by the 23 county credited to the services fund shall not exceed 24 an amount equal to the amount of base year expenditures 25 for services as defined in section 331.438 , less the 26 amount of property tax relief to be received pursuant 27 to section 426B.2 , in the fiscal year for which the 28 budget is certified. The county auditor and the 29 board of supervisors shall reduce the amount of the 30 levy certified for the services fund by the amount of 31 property tax relief to be received. A levy certified 32 under this section is not subject to the appeal 33 provisions of section 331.426 or to any other provision 34 in law authorizing a county to exceed, increase, or 35 appeal a property tax levy limit. 36 Sec. 66. Section 331.427, subsection 3, paragraph 37 l, Code 2013, is amended to read as follows: 38 l. Services listed in section 331.424, subsection 39 1 , Code 2013, and section 331.554 . 40 Sec. 67. Section 331.428, subsection 2, paragraph 41 d, Code 2013, is amended to read as follows: 42 d. Services listed under section 331.424, 43 subsection 2 , Code 2013 . 44 Sec. 68. Section 331.434, unnumbered paragraph 1, 45 Code 2013, is amended to read as follows: 46 Annually, the board of each county, subject to 47 section 331.403, subsection 4 , sections 331.423 through 48 331.426 331.424 , and other applicable state law, shall 49 prepare and adopt a budget, certify taxes, and provide 50 -35- SF295.1764.H (3) 85 md 35/ 42
appropriations as follows: 1 Sec. 69. Section 331.435, unnumbered paragraph 1, 2 Code 2013, is amended to read as follows: 3 The board may amend the adopted county budget, 4 subject to sections 331.423 through 331.426 331.424 and 5 other applicable state law, to permit increases in any 6 class of proposed expenditures contained in the budget 7 summary published under section 331.434, subsection 3 . 8 Sec. 70. Section 373.10, Code 2013, is amended to 9 read as follows: 10 373.10 Taxing authority. 11 The metropolitan council shall have the authority 12 to levy city taxes to the extent the city tax levy 13 authority is transferred by the charter to the 14 metropolitan council. A member city shall transfer 15 a portion of the city’s tax levy authorized under 16 section 384.1 or 384.12 , whichever is applicable, to 17 the metropolitan council. The maximum rates amount of 18 taxes authorized to be levied under sections section 19 384.1 and the taxes authorized to be levied under 20 section 384.12 by a member city shall be reduced by an 21 amount equal to the rates of the same or similar taxes 22 levied in the city by the metropolitan council. 23 Sec. 71. Section 384.1, Code 2013, is amended by 24 striking the section and inserting in lieu thereof the 25 following: 26 384.1 Property tax dollars —— maximums. 27 1. A city shall certify taxes to be levied by the 28 city on all taxable property within the city limits, 29 for all city government purposes. Annually, the city 30 council may certify basic levies for city government 31 purposes, subject to the limitation on property tax 32 dollars provided in this section. 33 2. For purposes of this section and section 384.1B, 34 unless the context otherwise requires: 35 a. “Annual growth factor” means an index, expressed 36 as a percentage, determined by the department of 37 management by January 1 of the calendar year in which 38 the budget year begins. In determining the annual 39 growth factor, the department shall calculate the 40 average of the preceding twelve-month percentage 41 change, which shall be computed on a monthly basis, 42 in the midwest consumer price index, ending with the 43 percentage change for the month of November. The 44 department shall then add that average percentage 45 change to one hundred percent. In no case, however, 46 shall the annual growth factor exceed one hundred four 47 percent. 48 b. “Boundary adjustment” means annexation, 49 severance, incorporation, or discontinuance as those 50 -36- SF295.1764.H (3) 85 md 36/ 42
terms are defined in section 368.1. 1 c. “Budget year” is the fiscal year beginning 2 during the calendar year in which a budget is 3 certified. 4 d. “Current fiscal year” is the fiscal year 5 ending during the calendar year in which a budget is 6 certified. 7 e. “Net new valuation taxes” means the amount of 8 property tax dollars equal to the current fiscal year’s 9 levy rate in the city for the general fund multiplied 10 by the increase from the current fiscal year to the 11 budget year in taxable valuation due to the following: 12 (1) Net new construction, excluding all incremental 13 valuation that is released in any one year from either 14 a division of revenue under section 260E.4 or an urban 15 renewal area for which taxes were being divided under 16 section 403.19 if the property for the valuation being 17 released remains subject to the division of revenue 18 under section 260E.4 or remains part of the urban 19 renewal area that is subject to a division of revenue 20 under section 403.19. 21 (2) Additions or improvements to existing 22 structures. 23 (3) Remodeling of existing structures for which a 24 building permit is required. 25 (4) Net boundary adjustment. 26 (5) A municipality no longer dividing tax revenues 27 in an urban renewal area as provided in section 403.19 28 or a community college no longer dividing revenues as 29 provided in section 260E.4. 30 (6) That portion of taxable property located in an 31 urban revitalization area on which an exemption was 32 allowed and such exemption has expired. 33 3. a. For the fiscal year beginning July 1, 2014, 34 and subsequent fiscal years, the maximum amount of 35 property tax dollars which may be certified for levy 36 by a city for the general fund shall be the maximum 37 property tax dollars calculated under paragraph “b” . 38 b. The maximum property tax dollars that may be 39 levied for deposit in the general fund is an amount 40 equal to the sum of the following: 41 (1) The annual growth factor times the current 42 fiscal year’s maximum property tax dollars for the 43 general fund. 44 (2) The amount of net new valuation taxes in the 45 city. 46 4. For purposes of calculating maximum property tax 47 dollars for the city general fund for the fiscal year 48 beginning July 1, 2014, only, the term “current fiscal 49 year’s maximum property tax dollars” shall mean the 50 -37- SF295.1764.H (3) 85 md 37/ 42
total amount of property tax dollars certified by the 1 city for the city’s general fund for the fiscal year 2 beginning July 1, 2013. 3 5. Property taxes certified for deposit in the 4 debt service fund in section 384.4, trust and agency 5 funds in section 384.6, capital improvements reserve 6 fund in section 384.7, the emergency fund in section 7 384.8, any capital projects fund established by the 8 city for deposit of bond, loan, or note proceeds, 9 any temporary increase approved pursuant to section 10 384.12A, property taxes collected from a voted levy 11 in section 384.12, and property taxes levied under 12 section 384.12, subsection 18, are not counted against 13 the maximum amount of property tax dollars that may be 14 certified for a fiscal year under subsection 3. 15 6. Notwithstanding the maximum amount of taxes 16 a city may certify for levy, the tax levied by a 17 city on tracts of land and improvements on the 18 tracts of land used and assessed for agricultural or 19 horticultural purposes shall not exceed three dollars 20 and three-eighths cents per thousand dollars of 21 assessed value in any year. Improvements located on 22 such tracts of land and not used for agricultural or 23 horticultural purposes and all residential dwellings 24 are subject to the same rate of tax levied by the city 25 on all other taxable property within the city. 26 7. The department of management, in consultation 27 with the city finance committee, shall adopt rules 28 to administer this section. The department shall 29 prescribe forms to be used by cities when making 30 calculations required by this section. 31 Sec. 72. NEW SECTION . 384.1B Ending fund balance. 32 1. a. Budgeted ending fund balances for a budget 33 year in excess of twenty-five percent of budgeted 34 expenditures from the general fund for that budget 35 year shall be explicitly reserved or designated for a 36 specific purpose. 37 b. A city is encouraged, but not required, to 38 reduce ending fund balances for the budget year to 39 an amount equal to approximately twenty-five percent 40 of budgeted expenditures and transfers from the 41 general fund for that budget year unless a decision 42 is certified by the state appeal board ordering a 43 reduction in the ending fund balance of the fund. 44 c. In a protest to the city budget under section 45 384.19, the city shall have the burden of proving 46 that the budgeted balances in excess of twenty-five 47 percent are reasonably likely to be appropriated for 48 the explicitly reserved or designated specific purpose. 49 The excess budgeted balance for the specific purpose 50 -38- SF295.1764.H (3) 85 md 38/ 42
shall be considered an increase in an item in the 1 budget for purposes of section 24.28. 2 2. a. For a city that has, as of June 30, 3 2013, reduced its ending fund balance to less than 4 twenty-five percent of actual expenditures, additional 5 property taxes may be computed and levied as provided 6 in this subsection. The additional property tax levy 7 amount is an amount not to exceed the difference 8 between twenty-five percent of actual expenditures for 9 city government purposes for the fiscal year beginning 10 July 1, 2012, minus the ending fund balance for that 11 year. 12 b. All or a portion of additional property tax 13 dollars may be levied for the purpose of increasing 14 cash reserves for city government purposes in the 15 budget year. The additional property tax dollars 16 authorized under this subsection but not levied may be 17 carried forward as unused ending fund balance taxing 18 authority until and for the fiscal year beginning 19 July 1, 2019. The amount carried forward shall not 20 exceed twenty-five percent of the maximum amount of 21 property tax dollars available in the current fiscal 22 year. Additionally, property taxes that are levied 23 as unused ending fund balance taxing authority under 24 this subsection may be the subject of a protest under 25 section 384.19, and the amount will be considered an 26 increase in an item in the budget for purposes of 27 section 24.28. The amount of additional property tax 28 dollars levied under this subsection shall not be 29 included in the computation of the maximum amount of 30 property tax dollars which may be certified and levied 31 under section 384.1. 32 Sec. 73. Section 384.12, subsection 19, Code 2013, 33 is amended by striking the subsection. 34 Sec. 74. NEW SECTION . 384.12A Authority to levy 35 beyond maximum property tax dollars. 36 1. The city council may certify additions to the 37 maximum amount of property tax dollars to be levied 38 for a period of time not to exceed two years if the 39 proposition has been submitted at a special election 40 and received a favorable majority of the votes cast on 41 the proposition. 42 2. The special election is subject to the 43 following: 44 a. The city council must give at least thirty-two 45 days’ notice to the county commissioner of elections 46 that the special election is to be held. In no 47 case, however, shall a notice be given to the county