Senate File 634 S-3206 Amend Senate File 634 as follows: 1 1. By striking page 1, line 1, through page 31, line 19, and 2 inserting: 3 < DIVISION I 4 COUNTY AND CITY PROPERTY TAX PUBLIC HEARING AND RESOLUTION 5 Section 1. Section 24.17, unnumbered paragraph 1, Code 6 2019, is amended to read as follows: 7 The local budgets of the various political subdivisions 8 shall be certified by the chairperson of the certifying board 9 or levying board, as the case may be, in duplicate to the 10 county auditor not later than March 15 of each year on forms, 11 and pursuant to instructions, prescribed by the department of 12 management. However, if the political subdivision is a county 13 or a city, its budget shall be certified not later than March 14 31 of each year, and if the political subdivision is a school 15 district, as defined in section 257.2 , its budget shall be 16 certified not later than April 15 of each year. 17 Sec. ___. Section 24.27, Code 2019, is amended to read as 18 follows: 19 24.27 Protest to budget. 20 Not later than March 25 , or April 10 for a county or a 21 city, or April 25 if the municipality is a school district, a 22 number of persons in any municipality equal to one-fourth of 23 one percent of those voting for the office of governor, at the 24 last general election in the municipality, but the number shall 25 not be less than ten, and the number need not be more than 26 one hundred persons, who are affected by any proposed budget, 27 expenditure or tax levy, or by any item thereof, may appeal 28 from any decision of the certifying board or the levying board 29 by filing with the county auditor of the county in which the 30 municipal corporation is located, a written protest setting 31 forth their objections to the budget, expenditure or tax levy, 32 or to one or more items thereof, and the grounds for their 33 objections. If a budget is certified after March 15 , or March 34 31 in the case of a county or a city, or April 15 in the case of 35 -1- SF634.2288 (2) 88 md/jh 1/ 13 #1.

a school district, all appeal time limits shall be extended to 1 correspond to allowances for a timely filing. Upon the filing 2 of a protest, the county auditor shall immediately prepare 3 a true and complete copy of the written protest, together 4 with the budget, proposed tax levy or expenditure to which 5 objections are made, and shall transmit them forthwith to the 6 state board, and shall also send a copy of the protest to the 7 certifying board or to the levying board, as the case may be. 8 Sec. ___. Section 24.48, subsection 4, Code 2019, is amended 9 to read as follows: 10 4. a. The city finance committee shall have officially 11 notified any city of its approval, modification or rejection 12 of the city’s appeal of the decision of the director of the 13 department of management regarding a city’s request for a 14 suspension of the statutory property tax levy limitation prior 15 to thirty-five days before March 15 31 . 16 b. The state appeals board shall have officially notified 17 any county of its approval, modification or rejection of the 18 county’s request for a suspension of the statutory property tax 19 levy limitation prior to thirty-five days before March 15. 20 Sec. ___. Section 76.2, subsection 1, paragraph b, Code 21 2019, is amended to read as follows: 22 b. If the resolution is filed prior to April 1 , or April 15, 23 if the political subdivision is a county or a city, or May 1, if 24 the political subdivision is a school district, the annual levy 25 shall begin with the tax levy for collection commencing July 26 1 of that year. If the resolution is filed on or after April 27 1 , or April 15, in the case of a county or a city, or May 1, in 28 the case of a school district, the annual levy shall begin with 29 the tax levy for collection in the next succeeding fiscal year. 30 However, the governing authority of a political subdivision may 31 adjust a levy of taxes made under this section for the purpose 32 of adjusting the annual levies and collections for property 33 severed from the political subdivision, subject to the approval 34 of the director of the department of management. 35 -2- SF634.2288 (2) 88 md/jh 2/ 13

Sec. ___. NEW SECTION . 331.433A Resolution establishing 1 maximum property tax dollars —— notice —— hearing. 2 1. For purposes of this section, unless the context 3 otherwise requires: 4 a. “Budget year” is the fiscal year beginning during the 5 calendar year in which a budget is certified. 6 b. “Current fiscal year” is the fiscal year ending during 7 the calendar year in which a budget for the budget year is 8 certified. 9 c. “Effective property tax rate” means the property tax rate 10 per one thousand dollars of assessed value and is equal to 11 one thousand multiplied by the quotient of the current fiscal 12 year’s actual property tax dollars certified for levy under 13 the levies specified in subsection 2, paragraph “a” or “b” , 14 as applicable, divided by the total assessed value used to 15 calculate taxes for the budget year. 16 2. For budget years beginning on or after July 1, 2020, 17 prior to filing the proposed budget with the auditor under 18 section 331.434, subsection 2, the board shall adopt a 19 resolution establishing the total maximum property tax dollars 20 that may be certified for levy for general county services and 21 the total maximum property tax dollars that may be certified 22 for levy for rural county services that includes the following, 23 as applicable: 24 a. For general county services, the sum of the property 25 tax dollars levied under section 331.423, subsection 1, 26 section 331.424, subsection 1, and those amounts for general 27 county services under section 331.426, but excluding additions 28 approved at election under section 331.425. 29 b. For rural county services, the sum of the property tax 30 dollars levied under section 331.423, subsection 2, section 31 331.424, subsection 2, and those amounts for rural county 32 services under section 331.426, but excluding additions 33 approved at election under section 331.425. 34 3. The maximum property tax dollars calculated and approved 35 -3- SF634.2288 (2) 88 md/jh 3/ 13

by resolution under this section includes those amounts 1 received by the county as replacement taxes under chapter 437A 2 or 437B. 3 4. a. The board shall set a time and place for a public 4 hearing on the resolution before the date for adoption of the 5 resolution and shall publish notice of the hearing not less 6 than ten nor more than twenty days prior to the hearing in the 7 county newspapers selected under chapter 349. If the county 8 has an internet site, the notice shall also be posted and 9 clearly identified on the county’s internet site for public 10 viewing beginning on the date of the newspaper publication. 11 Additionally, if the county maintains a social media account 12 on one or more social media applications, the public hearing 13 notice or an electronic link to the public hearing notice 14 shall be posted on each such account on the same day as the 15 publication of the notice. All of the following shall be 16 included in the notice: 17 (1) The sum of the current fiscal year’s actual property 18 taxes certified for levy for general county services and the 19 sum of the current fiscal year’s actual property taxes for 20 rural county services under the levies specified in subsection 21 2, paragraphs “a” and “b” , and the current fiscal year’s 22 combined property tax levy rate for each such amount. 23 (2) The effective tax rate for general county services and 24 the effective tax rate for rural county services calculated 25 using the sum of the current fiscal year’s actual property 26 taxes certified for levy for general county services and 27 the sum of the current fiscal year’s actual property taxes 28 certified for levy for rural county services under the 29 levies specified in subsection 2, paragraphs “a” and “b” , as 30 applicable. 31 (3) The proposed maximum property tax dollars that may be 32 certified for levy for general county services and certified 33 for levy for rural county services under the levies specified 34 in subsection 2, paragraphs “a” and “b” , as applicable, for the 35 -4- SF634.2288 (2) 88 md/jh 4/ 13

budget year and the proposed corresponding combined property 1 tax levy rate for each such amount. 2 (4) If the proposed maximum property tax dollars specified 3 under subparagraph (3) for either general county services 4 or rural county services exceeds the current fiscal year’s 5 actual property tax dollars certified for levy for general 6 county services or for rural county services as specified in 7 subparagraph (1), a statement of the major reasons for the 8 increase. 9 b. Proof of publication shall be filed with and preserved 10 by the auditor. The department of management shall prescribe 11 the form for the public hearing notice for use by counties and 12 the form for the resolution to be adopted by the board under 13 subsection 5. 14 5. a. At the public hearing, the board shall receive oral 15 or written objections from any resident or property owner 16 of the county. After all objections have been received and 17 considered, the board may decrease, but not increase, the 18 proposed maximum property tax dollar amounts for inclusion in 19 the resolution and shall adopt the resolution and file the 20 resolution with the auditor as required under section 331.434, 21 subsection 3. 22 b. If the sum of the maximum property tax dollars for the 23 budget year specified in the resolution for either general 24 county services or for rural county services under the 25 levies specified in subsection 2, paragraphs “a” and “b” , as 26 applicable, exceeds one hundred two percent of the sum of the 27 current fiscal year’s actual property taxes certified for levy 28 for general county services or rural county services under the 29 levies specified in subsection 2, paragraphs “a” and “b” , as 30 applicable, the board shall be required to adopt the resolution 31 by a two-thirds majority of the membership of the board. 32 c. If the county has an internet site, in addition to 33 filing the resolution with the auditor under section 331.434, 34 subsection 3, the adopted resolution shall be posted and 35 -5- SF634.2288 (2) 88 md/jh 5/ 13

clearly identified on the county’s internet site for public 1 viewing within ten days of approval by the board. The posted 2 resolution for a budget year shall continue to be accessible 3 for public viewing on the internet site along with resolutions 4 posted for all subsequent budget years. 5 Sec. ___. Section 331.434, unnumbered paragraph 1, Code 6 2019, is amended to read as follows: 7 Annually, the board of each county, subject to section 8 331.403, subsection 4 , sections 331.423 through 331.426 , 9 section 331.433A, and other applicable state law, shall prepare 10 and adopt a budget, certify taxes, and provide appropriations 11 as follows: 12 Sec. ___. Section 331.434, subsection 3, Code 2019, is 13 amended to read as follows: 14 3. The Following, and not until adoption of the resolution 15 under section 331.433A, the board shall set a time and 16 place for a public hearing on the budget before the final 17 certification date and shall publish notice of the hearing not 18 less than ten nor more than twenty days prior to the hearing in 19 the county newspapers selected under chapter 349 . A summary 20 of the proposed budget and a description of the procedure for 21 protesting the county budget under section 331.436 , in the form 22 prescribed by the director of the department of management, 23 shall be included in the notice. Proof of publication of the 24 notice under this subsection 3 and a copy of the resolution 25 adopted under section 331.433A shall be filed with and 26 preserved by the auditor. A levy is not valid unless and until 27 the notice is published and the notice and resolution adopted 28 under section 331.433A are filed. The department of management 29 shall prescribe the form for the public hearing notice for use 30 by counties. 31 Sec. ___. Section 331.434, subsection 5, paragraph a, Code 32 2019, is amended to read as follows: 33 a. After the hearing, the board shall adopt by resolution 34 a budget and certificate of taxes for the next fiscal year 35 -6- SF634.2288 (2) 88 md/jh 6/ 13

and shall direct the auditor to properly certify and file the 1 budget and certificate of taxes as adopted. The board shall 2 not adopt a tax in excess of the estimate published or the 3 applicable amounts specified in the resolution adopted under 4 section 331.433A , except a tax which is approved by a vote of 5 the people, and a greater tax than that adopted shall not be 6 levied or collected. A county budget and certificate of taxes 7 adopted for the following fiscal year becomes effective on the 8 first day of that year. 9 Sec. ___. Section 331.434, subsection 7, Code 2019, is 10 amended to read as follows: 11 7. Taxes levied by a county whose budget is certified after 12 March 15 31 shall be limited to the prior year’s budget amount. 13 However, this penalty may be waived by the director of the 14 department of management if the county demonstrates that the 15 March 15 31 deadline was missed because of circumstances beyond 16 the control of the county. 17 Sec. ___. Section 331.435, Code 2019, is amended to read as 18 follows: 19 331.435 Budget amendment. 20 1. The board may amend the adopted county budget, subject 21 to sections 331.423 through 331.426 and other applicable state 22 law, to permit increases in any class of proposed expenditures 23 contained in the budget summary published under section 24 331.434, subsection 3 . 25 2. The board shall prepare and adopt a budget amendment in 26 the same manner as the original budget , as provided in section 27 331.434 , but excluding the requirements for adoption of the 28 resolution under section 331.433A, and the amendment is subject 29 to protest as provided in section 331.436 , except that the 30 director of the department of management may by rule provide 31 that amendments of certain types or up to certain amounts may 32 be made without public hearing and without being subject to 33 protest. A county budget for the ensuing fiscal year shall be 34 amended by May 31 to allow time for a protest hearing to be 35 -7- SF634.2288 (2) 88 md/jh 7/ 13

held and a decision rendered before June 30. An amendment of 1 a budget after May 31 which is properly appealed but without 2 adequate time for hearing and decision before June 30 is void. 3 Sec. ___. Section 331.436, Code 2019, is amended to read as 4 follows: 5 331.436 Protest. 6 Protests to the adopted budget must be made in accordance 7 with sections 24.27 through 24.32 as if the county were the 8 municipality under those sections except that the protest 9 must be filed no later than April 10 and the number of people 10 necessary to file a protest under this section shall not be 11 less than one hundred. 12 Sec. ___. Section 384.2, unnumbered paragraph 1, Code 2019, 13 is amended to read as follows: 14 Except as otherwise provided for special charter cities, 15 a city’s fiscal year shall be as provided in section 24.2, 16 subsection 3 . All city property taxes must be certified by a 17 city to the county auditor on or before the fifteenth day of 18 March 31 of each year, unless otherwise provided by state law. 19 However, municipal utilities, if not supported by taxation 20 or the proceeds of outstanding indebtedness payable from 21 taxes may, with the council’s consent, choose to operate on a 22 fiscal year which is the calendar year. The receipt by the 23 utility of payments from other governmental funds for public 24 fire protection, street lighting, or other public use of the 25 utility’s services shall not be deemed support by taxation. 26 After notice and hearing in the same manner as required for the 27 city’s regular budget under section 384.16 , the utility budget 28 must be approved by resolution of the council not later than 29 twenty days prior to the beginning of the calendar year for 30 which the budget applies. 31 Sec. ___. NEW SECTION . 384.15A Resolution establishing 32 maximum property tax dollars —— notice —— hearing. 33 1. For purposes of this section, unless the context 34 otherwise requires: 35 -8- SF634.2288 (2) 88 md/jh 8/ 13

a. “Budget year” is the fiscal year beginning during the 1 calendar year in which a budget is certified. 2 b. “Current fiscal year” is the fiscal year ending during 3 the calendar year in which a budget for the budget year is 4 certified. 5 c. “Effective property tax rate” means the property tax rate 6 per one thousand dollars of assessed value and is equal to 7 one thousand multiplied by the quotient of the current fiscal 8 year’s actual property tax dollars certified for levy under the 9 levies specified in subsection 2 divided by the total assessed 10 value used to calculate taxes for the budget year. 11 2. For budget years beginning on or after July 1, 2020, 12 prior to the period of time for distribution of the budget 13 under section 384.16, subsection 2, the council shall adopt a 14 resolution establishing the total maximum property tax dollars 15 that may be certified for levy that includes taxes for city 16 government purposes under section 384.1, for the city’s trust 17 and agency fund under section 384.6, subsection 1, for the 18 city’s emergency fund under section 384.8, and for the levies 19 authorized under section 384.12, subsections 8, 10, 11, 12, 13, 20 17, and 21, but excluding additions approved at election under 21 section 384.12, subsection 19. 22 3. The maximum property tax dollars calculated and approved 23 by resolution under this section includes those amounts 24 received by the city as replacement taxes under chapter 437A 25 or 437B. 26 4. a. The council shall set a time and place for a public 27 hearing on the resolution before the date for adoption of the 28 resolution and shall publish notice of the hearing not less 29 than ten nor more than twenty days prior to the hearing in a 30 newspaper published at least once weekly and having general 31 circulation in the city. However, if the city has a population 32 of two hundred or less, publication may be made by posting in 33 three public places in the city. If the city has an internet 34 site, the notice shall also be posted and clearly identified 35 -9- SF634.2288 (2) 88 md/jh 9/ 13

on the city’s internet site for public viewing beginning on 1 the date of the newspaper publication or public posting, as 2 applicable. Additionally, if the city maintains a social media 3 account on one or more social media applications, the public 4 hearing notice or an electronic link to the public hearing 5 notice shall be posted on each such account on the same day as 6 the publication of the notice. All of the following shall be 7 included in the notice: 8 (1) The sum of the current fiscal year’s actual property 9 taxes certified for levy under the levies specified in 10 subsection 2 and the current fiscal year’s combined property 11 tax levy rate for such amount that is applicable to taxable 12 property in the city other than property used and assessed for 13 agricultural or horticultural purposes. 14 (2) The effective tax rate calculated using the sum of 15 the current fiscal year’s actual property taxes certified for 16 levy under the levies specified in subsection 2, applicable 17 to taxable property in the city other than property used and 18 assessed for agricultural or horticultural purposes. 19 (3) The sum of the proposed maximum property tax dollars 20 that may be certified for levy for the budget year under the 21 levies specified in subsection 2 and the proposed combined 22 property tax levy rate for such amount applicable to taxable 23 property in the city other than property used and assessed for 24 agricultural or horticultural purposes. 25 (4) If the proposed maximum property tax dollars specified 26 under subparagraph (3) exceeds the current fiscal year’s 27 actual property tax dollars certified for levy specified in 28 subparagraph (1), a statement of the major reasons for the 29 increase. 30 b. Proof of publication shall be filed with and preserved 31 by the county auditor. The department of management shall 32 prescribe the form for the public hearing notice for use by 33 cities and the form for the resolution to be adopted by the 34 council under subsection 5. 35 -10- SF634.2288 (2) 88 md/jh 10/ 13

5. a. At the public hearing, the council shall receive 1 oral or written objections from any resident or property owner 2 of the city. After all objections have been received and 3 considered, the council may decrease, but not increase, the 4 proposed maximum property tax dollar amount for inclusion in 5 the resolution and shall adopt the resolution and file the 6 resolution with the county auditor as required under section 7 384.16, subsection 3. 8 b. If the sum of the maximum property tax dollars for 9 the budget year specified in the resolution under the levies 10 specified in subsection 2 exceeds one hundred two percent of 11 the sum of the current fiscal year’s actual property taxes 12 certified for levy under the levies specified in subsection 13 2, the council shall be required to adopt the resolution by a 14 two-thirds majority of the membership of the council. 15 c. If the city has an internet site, in addition to 16 filing the resolution with the auditor under section 384.16, 17 subsection 3, the adopted resolution shall be posted and 18 clearly identified on the city’s internet site for public 19 viewing within ten days of approval by the council. The posted 20 resolution for a budget year shall continue to be accessible 21 for public viewing on the internet site along with resolutions 22 posted for all subsequent budget years. 23 Sec. ___. Section 384.16, unnumbered paragraph 1, Code 24 2019, is amended to read as follows: 25 Annually, a city that has satisfied the requirements of 26 section 384.15A and section 384.22, subsection 3 , shall prepare 27 and adopt a budget, and shall certify taxes as follows: 28 Sec. ___. Section 384.16, subsections 3, 5, and 6, Code 29 2019, are amended to read as follows: 30 3. The Following, and not until adoption of the resolution 31 under section 384.15A, the council shall set a time and place 32 for public hearing on the budget before the final certification 33 date and shall publish notice of the hearing not less than ten 34 nor more than twenty days before the hearing in a newspaper 35 -11- SF634.2288 (2) 88 md/jh 11/ 13

published at least once weekly and having general circulation 1 in the city. However, if the city has a population of two 2 hundred or less, publication may be made by posting in three 3 public places in the city. A summary of the proposed budget 4 and a description of the procedure for protesting the city 5 budget under section 384.19, in the form prescribed by the 6 director of the department of management, shall be included 7 in the notice. Proof of publication of the notice under this 8 subsection 3 and a copy of the resolution adopted under section 9 384.15A must be filed with the county auditor. The department 10 of management shall prescribe the form for the public hearing 11 notice for use by cities. 12 5. After the hearing, the council shall adopt by resolution 13 a budget for at least the next fiscal year, and the clerk 14 shall certify the necessary tax levy for the next fiscal year 15 to the county auditor and the county board of supervisors. 16 The tax levy certified may be less than but not more than 17 the amount estimated in the proposed budget submitted at 18 the final hearing or the applicable amount specified in the 19 resolution adopted under section 384.15A , unless an additional 20 tax levy is approved at a city election. Two copies each of 21 the detailed budget as adopted and of the tax certificate must 22 be transmitted to the county auditor, who shall complete the 23 certificates and transmit a copy of each to the department of 24 management. 25 6. Taxes levied by a city whose budget is certified after 26 March 15 31 shall be limited to the prior year’s budget amount. 27 However, this penalty may be waived by the director of the 28 department of management if the city demonstrates that the 29 March 15 31 deadline was missed because of circumstances beyond 30 the control of the city. 31 Sec. ___. Section 384.17, Code 2019, is amended to read as 32 follows: 33 384.17 Levy by county. 34 At the time required by law, the county board of supervisors 35 -12- SF634.2288 (2) 88 md/jh 12/ 13

shall levy the taxes necessary for each city fund for the 1 following fiscal year. The levy must be as shown in the 2 adopted city budget and as certified by the clerk, subject to 3 any changes made after a protest hearing, and any additional 4 tax rates approved at a city election. A city levy is not valid 5 until proof of publication or posting of notice of a budget 6 hearing is under section 384.16, subsection 3, and the notice 7 and resolution adopted under section 384.15A are filed with the 8 county auditor. 9 Sec. ___. APPLICABILITY. This division of this Act applies 10 to city and county budgets and taxes for fiscal years beginning 11 on or after July 1, 2020. > 12 2. Page 31, line 20, by striking < IV > and inserting < II > 13 3. Title page, by striking lines 2 through 8 and inserting 14 < taxation by modifying provisions governing the establishment 15 and approval of county and city budgets, modifying provisions 16 relating to the state appraisal manual, and including 17 applicability provisions. > 18 4. By renumbering as necessary. 19 ______________________________ RANDY FEENSTRA -13- SF634.2288 (2) 88 md/jh 13/ 13 #2. #3. #4.