Senate File 365 S-3032 Amend Senate File 365 as follows: 1 1. Page 1, before line 1 by inserting: 2 < Section 1. Section 386.8, Code 2021, is amended to read as 3 follows: 4 386.8 Operation tax. 5 A city may establish a self-supported improvement district 6 operation fund, and may certify taxes not to exceed the 7 rate limitation as established in the ordinance creating the 8 district, or any amendment thereto, each year to be levied 9 for the fund against all of the property in the district, 10 for the purpose of paying the administrative expenses of 11 the district, which may include but are not limited to 12 administrative personnel salaries, a separate administrative 13 office, planning costs including consultation fees, engineering 14 fees, architectural fees, and legal fees and all other expenses 15 reasonably associated with the administration of the district 16 and the fulfilling of the purposes of the district. The taxes 17 levied for this fund may also be used for the purpose of paying 18 maintenance expenses of improvements or self-liquidating 19 improvements for a specified length of time with one or more 20 options to renew if such is clearly stated in the petition 21 which requests the council to authorize construction of the 22 improvement or self-liquidating improvement, whether or not 23 such petition is combined with the petition requesting creation 24 of a district. Parcels of property which are assessed as 25 residential property for property tax purposes are exempt 26 from the tax levied under this section except residential 27 properties within a duly designated historic district or 28 property classified as residential property under section 29 441.21, subsection 14, paragraph “a” , subparagraph (6) . A tax 30 levied under this section is not subject to the levy limitation 31 in section 384.1 . 32 Sec. ___. Section 386.9, Code 2021, is amended to read as 33 follows: 34 386.9 Capital improvement tax. 35 -1- SF365.713 (1) 89 (amending this SF 365 to CONFORM to HF 418) md/jh 1/ 3 #1.

A city may establish a capital improvement fund for a 1 district and may certify taxes, not to exceed the rate 2 established by the ordinance creating the district, or any 3 subsequent amendment thereto, each year to be levied for 4 the fund against all of the property in the district, for 5 the purpose of accumulating moneys for the financing or 6 payment of a part or all of the costs of any improvement or 7 self-liquidating improvement. However, parcels of property 8 which are assessed as residential property for property tax 9 purposes are exempt from the tax levied under this section 10 except residential properties within a duly designated historic 11 district or property classified as residential property under 12 section 441.21, subsection 14, paragraph “a” , subparagraph (6) . 13 A tax levied under this section is not subject to the levy 14 limitations in section 384.1 or 384.7 . 15 Sec. ___. Section 386.10, Code 2021, is amended to read as 16 follows: 17 386.10 Debt service tax. 18 A city shall establish a self-supported municipal 19 improvement district debt service fund whenever any 20 self-supported municipal improvement district bonds are issued 21 and outstanding, other than revenue bonds, and shall certify 22 taxes to be levied against all of the property in the district 23 for the debt service fund in the amount necessary to pay 24 interest as it becomes due and the amount necessary to pay, 25 or to create a sinking fund to pay, the principal at maturity 26 of all self-supported municipal improvement district bonds as 27 authorized in section 386.11 , issued by the city. However, 28 parcels of property which are assessed as residential property 29 for property tax purposes at the time of the issuance of the 30 bonds are exempt from the tax levied under this section until 31 the parcels are no longer assessed as residential property 32 or until the residential properties are designated as a part 33 of a historic district or property classified as residential 34 property under section 441.21, subsection 14, paragraph “a” , 35 -2- SF365.713 (1) 89 (amending this SF 365 to CONFORM to HF 418) md/jh 2/ 3

subparagraph (6) . > 1 2. Page 1, after line 29 by inserting: 2 < Sec. ___. Section 404.3A, Code 2021, is amended to read as 3 follows: 4 404.3A Residential development area exemption. 5 Notwithstanding the schedules provided for in section 404.3 , 6 all qualified real estate assessed as residential property , 7 excluding property classified as residential property under 8 section 441.21, subsection 14, paragraph “a” , subparagraph (6), 9 in an area designated under section 404.1, subsection 5 , is 10 eligible to receive an exemption from taxation on the first 11 seventy-five thousand dollars of actual value added by the 12 improvements. The exemption is for a period of five years. > 13 3. Title page, line 1, after < tax > by inserting < levies, 14 exemptions, > 15 4. By renumbering as necessary. 16 ______________________________ DAN DAWSON -3- SF365.713 (1) 89 (amending this SF 365 to CONFORM to HF 418) md/jh 3/ 3 #2. #3. #4.