House File 718 S-3205 Amend House File 718, as amended, passed, and reprinted by 1 the House, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < DIVISION I 5 COUNTY PROPERTY TAXES AND BUDGETS 6 Section 1. Section 331.422, unnumbered paragraph 1, Code 7 2023, is amended to read as follows: 8 Subject to this section and sections 331.423 through 331.426 9 331.425 or as otherwise provided by state law, the board of 10 each county shall certify property taxes annually at its March 11 session to be levied for county purposes as follows: 12 Sec. 2. Section 331.423, Code 2023, is amended to read as 13 follows: 14 331.423 Basic levies —— maximums —— adjustments . 15 Annually, the board may certify basic levies, subject to the 16 following limits: 17 1. For general county services , on all taxable property in 18 the county: 19 a. For fiscal years beginning before July 1, 2024, three 20 dollars and fifty cents per thousand dollars of the assessed 21 value of all taxable property in the county . 22 b. (1) For each fiscal year beginning on or after July 1, 23 2024, but before July 1, 2028, subject to subparagraph (3), 24 the greater of three dollars and fifty cents per thousand 25 dollars of assessed value used to calculate taxes for general 26 county services for the budget year and the adjusted general 27 county basic levy rate, as adjusted under subparagraph (2), if 28 applicable. 29 (2) (a) If the total assessed value used to calculate 30 taxes for general county services under this paragraph for the 31 budget year exceeds one hundred three percent, but is less 32 than one hundred six percent, of the total assessed value 33 used to calculate taxes for general county services for the 34 current fiscal year, the adjusted general county basic levy 35 -1- HF 718.2086 (4) 90 md/jh 1/ 74 #1.
rate, as previously adjusted under this subparagraph, if 1 applicable, shall be reduced to a rate per thousand dollars 2 of assessed value that is equal to one thousand multiplied 3 by the quotient of the current fiscal year’s actual property 4 tax dollars certified for levy under this subsection 1 divided 5 by one hundred two percent of the total assessed value used 6 to calculate such taxes for the current fiscal year. For 7 the budget year beginning July 1, 2024, only, the current 8 fiscal year’s actual property tax dollars certified for levy 9 under this subsection 1 shall also include property tax dollar 10 amounts levied for general county services by the county under 11 section 331.426, Code 2023, for the fiscal year beginning July 12 1, 2023. 13 (b) If the total assessed value used to calculate taxes 14 for general county services under this paragraph for the 15 budget year is equal to or exceeds one hundred six percent of 16 the total assessed value used to calculate taxes for general 17 county services for the current fiscal year, the adjusted 18 general county basic levy rate, as previously adjusted under 19 this subparagraph, if applicable, shall be reduced to a rate 20 per thousand dollars of assessed value that is equal to one 21 thousand multiplied by the quotient of the current fiscal 22 year’s actual property tax dollars certified for levy under 23 this subsection 1 divided by one hundred three percent of 24 the total assessed value used to calculate such taxes for 25 the current fiscal year. For the budget year beginning July 26 1, 2024, only, the current fiscal year’s actual property tax 27 dollars certified for levy under this subsection 1 shall also 28 include property tax dollar amounts levied for general county 29 services by the county under section 331.426, Code 2023, for 30 the fiscal year beginning July 1, 2023. 31 (3) (a) (i) In addition to the limitation under 32 subparagraph (2), if the county’s actual levy rate imposed 33 under this subsection 1 for the current fiscal year is three 34 dollars and fifty cents or less per thousand dollars of 35 -2- HF 718.2086 (4) 90 md/jh 2/ 74
assessed value and the total assessed value used to calculate 1 taxes for general county services under this paragraph for the 2 budget year exceeds one hundred three percent, but is less than 3 one hundred six percent, of the total assessed value used to 4 calculate taxes for general county services for the current 5 fiscal year, the levy rate imposed under this subsection 1 for 6 the budget year shall not exceed a rate per thousand dollars 7 of assessed value that is equal to one thousand multiplied by 8 the quotient of the current fiscal year’s actual property tax 9 dollars certified for levy under this subsection 1 divided by 10 one hundred two percent of the total assessed value used to 11 calculate taxes for general county services for the current 12 fiscal year. 13 (ii) For the budget year beginning July 1, 2024, only, 14 the county’s actual levy rate imposed under this subsection 1 15 for the current fiscal year shall also include the amount per 16 thousand dollars of assessed value levied for general county 17 services by the county under section 331.426, Code 2023, for 18 the fiscal year beginning July 1, 2023, and the current fiscal 19 year’s actual property tax dollars certified for levy under 20 this subsection 1 shall also include amounts levied for general 21 county services by the county under section 331.426, Code 2023, 22 for the fiscal year beginning July 1, 2023. 23 (b) (i) In addition to the limitation under subparagraph 24 (2), if the county’s actual levy rate imposed under this 25 subsection 1 for the current fiscal year is three dollars and 26 fifty cents or less per thousand dollars of assessed value and 27 the total assessed value used to calculate taxes for general 28 county services under this paragraph for the budget year is 29 equal to or exceeds one hundred six percent of the total 30 assessed value used to calculate taxes for general county 31 services for the current fiscal year, the levy rate imposed 32 under this subsection 1 for the budget year shall not exceed a 33 rate per thousand dollars of assessed value that is equal to 34 one thousand multiplied by the quotient of the current fiscal 35 -3- HF 718.2086 (4) 90 md/jh 3/ 74
year’s actual property tax dollars certified for levy under 1 this subsection 1 divided by one hundred three percent of the 2 total assessed value used to calculate taxes for general county 3 services for the current fiscal year. 4 (ii) For the budget year beginning July 1, 2024, only, 5 the county’s actual levy rate imposed under this subsection 1 6 for the current fiscal year shall also include the amount per 7 thousand dollars of assessed value levied for general county 8 services by the county under section 331.426, Code 2023, for 9 the fiscal year beginning July 1, 2023, and the current fiscal 10 year’s actual property tax dollars certified for levy under 11 this subsection 1 shall also include amounts levied for general 12 county services by the county under section 331.426, Code 2023, 13 for the fiscal year beginning July 1, 2023. 14 (4) Subject to adjustment under subparagraph (2), for 15 purposes of this paragraph, “adjusted general county basic 16 levy rate” means a levy rate per thousand dollars of assessed 17 value equal to the sum of three dollars and fifty cents plus 18 the amount per thousand dollars of assessed value levied for 19 general county services by the county under section 331.426, 20 Code 2023, for the fiscal year beginning July 1, 2023. 21 c. For each fiscal year beginning on or after July 1, 2028, 22 three dollars and fifty cents per thousand dollars of assessed 23 value. 24 2. For rural county services , on all taxable property in the 25 county outside of incorporated city areas: 26 a. For fiscal years beginning before July 1, 2024, three 27 dollars and ninety-five cents per thousand dollars of the 28 assessed value of taxable property in the county outside of 29 incorporated city areas . 30 b. (1) For each fiscal year beginning on or after July 1, 31 2024, but before July 1, 2028, subject to subparagraph (3), the 32 greater of three dollars and ninety-five cents per thousand 33 dollars of assessed value used to calculate taxes for rural 34 county services for the budget year and the adjusted rural 35 -4- HF 718.2086 (4) 90 md/jh 4/ 74
county basic levy rate, as adjusted under subparagraph (2), if 1 applicable. 2 (2) (a) If the total assessed value used to calculate 3 taxes for rural county services under this paragraph for the 4 budget year exceeds one hundred three percent, but is less 5 than one hundred six percent, of the total assessed value 6 used to calculate taxes for rural county services for the 7 current fiscal year, the adjusted rural county basic levy 8 rate, as previously adjusted under this subparagraph, if 9 applicable, shall be reduced to a rate per thousand dollars 10 of assessed value that is equal to one thousand multiplied 11 by the quotient of the current fiscal year’s actual property 12 tax dollars certified for levy under this subsection 2 divided 13 by one hundred two percent of the total assessed value used 14 to calculate such taxes for the current fiscal year. For 15 the budget year beginning July 1, 2024, only, the current 16 fiscal year’s actual property tax dollars certified for levy 17 under this subsection 2 shall also include property tax dollar 18 amounts levied for rural county services by the county under 19 section 331.426, Code 2023, for the fiscal year beginning July 20 1, 2023. 21 (b) If the total assessed value used to calculate taxes 22 for rural county services under this paragraph for the budget 23 year is equal to or exceeds one hundred six percent of the 24 total assessed value used to calculate taxes for rural county 25 services for the current fiscal year, the adjusted rural 26 county basic levy rate, as previously adjusted under this 27 subparagraph, if applicable, shall be reduced to a rate 28 per thousand dollars of assessed value that is equal to one 29 thousand multiplied by the quotient of the current fiscal 30 year’s actual property tax dollars certified for levy under 31 this subsection 2 divided by one hundred three percent of 32 the total assessed value used to calculate such taxes for 33 the current fiscal year. For the budget year beginning July 34 1, 2024, only, the current fiscal year’s actual property tax 35 -5- HF 718.2086 (4) 90 md/jh 5/ 74
dollars certified for levy under this subsection 2 shall also 1 include property tax dollar amounts levied for rural county 2 services by the county under section 331.426, Code 2023, for 3 the fiscal year beginning July 1, 2023. 4 (3) (a) (i) In addition to the limitation under 5 subparagraph (2), if the county’s actual levy rate imposed 6 under this paragraph for the current fiscal year is three 7 dollars and ninety-five cents or less per thousand dollars of 8 assessed value and the total assessed value used to calculate 9 taxes for rural county services under this paragraph for the 10 budget year exceeds one hundred three percent, but is less 11 than one hundred six percent, of the total assessed value used 12 to calculate taxes for rural county services for the current 13 fiscal year, the levy rate imposed under this subsection 2 for 14 the budget year shall not exceed a rate per thousand dollars 15 of assessed value that is equal to one thousand multiplied by 16 the quotient of the current fiscal year’s actual property tax 17 dollars certified for levy under this subsection 2 divided by 18 one hundred two of the total assessed value used to calculate 19 taxes for rural county services for the current fiscal year. 20 (ii) For the budget year beginning July 1, 2024, only, 21 the county’s actual levy rate imposed under this subsection 22 2 for the current fiscal year shall also include the amount 23 per thousand dollars of assessed value levied for rural county 24 services by the county under section 331.426, Code 2023, for 25 the fiscal year beginning July 1, 2023, and the current fiscal 26 year’s actual property tax dollars certified for levy under 27 this subsection 2 shall also include amounts levied for rural 28 county services by the county under section 331.426, Code 2023, 29 for the fiscal year beginning July 1, 2023. 30 (b) (i) In addition to the limitation under subparagraph 31 (2), if the county’s actual levy rate imposed under this 32 subsection 2 for the current fiscal year is three dollars and 33 ninety-five cents or less per thousand dollars of assessed 34 value and the total assessed value used to calculate taxes 35 -6- HF 718.2086 (4) 90 md/jh 6/ 74
for rural county services under this paragraph for the budget 1 year is equal to or exceeds one hundred six percent of the 2 total assessed value used to calculate taxes for rural county 3 services for the current fiscal year, the levy rate imposed 4 under this subsection 2 for the budget year shall not exceed 5 a rate per thousand dollars of assessed value that is equal 6 to one thousand multiplied by the quotient of the current 7 fiscal year’s actual property tax dollars certified for levy 8 under this subsection 2 divided by one hundred three of the 9 total assessed value used to calculate taxes for rural county 10 services for the current fiscal year. 11 (ii) For the budget year beginning July 1, 2024, only, 12 the county’s actual levy rate imposed under this subsection 13 2 for the current fiscal year shall also include the amount 14 per thousand dollars of assessed value levied for rural county 15 services by the county under section 331.426, Code 2023, for 16 the fiscal year beginning July 1, 2023, and the current fiscal 17 year’s actual property tax dollars certified for levy under 18 this subsection 2 shall also include amounts levied for rural 19 county services by the county under section 331.426, Code 2023, 20 for the fiscal year beginning July 1, 2023. 21 (4) Subject to adjustment under subparagraph (2), for 22 purposes of this paragraph, “adjusted rural county basic levy 23 rate” means a levy rate per thousand dollars of assessed value 24 equal to the sum of three dollars and ninety-five cents plus 25 the amount per thousand dollars of assessed value levied for 26 rural county services by the county under section 331.426, Code 27 2023, for the fiscal year beginning July 1, 2023. 28 c. For each fiscal year beginning on or after July 1, 2028, 29 three dollars and ninety-five cents per thousand dollars of 30 assessed value. 31 3. For purposes of this section: 32 a. “Budget year” is the fiscal year beginning during the 33 calendar year in which a budget is certified. 34 b. “Current fiscal year” is the fiscal year ending during 35 -7- HF 718.2086 (4) 90 md/jh 7/ 74
the calendar year in which a budget for the budget year is 1 certified. 2 Sec. 3. Section 331.424, unnumbered paragraph 1, Code 2023, 3 is amended to read as follows: 4 To the extent that the basic levies under section 331.423 5 are insufficient to meet the county’s needs for the following 6 services, the board may certify supplemental levies as follows: 7 Sec. 4. Section 331.425, unnumbered paragraph 1, Code 2023, 8 is amended to read as follows: 9 The board may certify an addition to a levy in excess 10 of the amounts otherwise permitted under sections 331.423 , 11 and 331.424 , and 331.426 if the proposition to certify an 12 addition to a levy has been submitted at a special levy 13 election and received a favorable majority of the votes cast 14 on the proposition. A special levy election is subject to the 15 following: 16 Sec. 5. Section 331.425, Code 2023, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 6. a. If the addition to a levy approved 19 under this section is due to unusual circumstances resulting 20 from the following, the duration of such approval at election 21 shall not exceed the following period of years: 22 (1) Unusual problems relating to major new functions 23 required by state law, three years. 24 (2) Unusual need for a new program which will provide 25 substantial benefit to county residents, if the county 26 establishes the need and the amount of necessary increased 27 cost, one year. 28 b. For an election to approve an addition to a levy for a 29 reason specified in paragraph “a” or as the result of a natural 30 disaster, the ballot shall include a statement of the major 31 reasons for the difference between the proposed basic tax rate 32 and the maximum basic tax rate, including a description of the 33 major new functions required by state law and the specific 34 new costs to the county to implement the new functions, a 35 -8- HF 718.2086 (4) 90 md/jh 8/ 74
description of the new program that will provide substantial 1 benefits to county residents and specific new costs to the 2 county for the program, or the conditions and damage resulting 3 from the natural disaster that the county must remedy. 4 Sec. 6. Section 331.434, unnumbered paragraph 1, Code 2023, 5 is amended to read as follows: 6 Annually, the board of each county, subject to section 7 331.403, subsection 4 , sections 331.423 through 331.426 8 331.425 , section 331.433A , and other applicable state law, 9 shall prepare and adopt a budget, certify taxes, and provide 10 appropriations as follows: 11 Sec. 7. Section 331.435, subsection 1, Code 2023, is amended 12 to read as follows: 13 1. The board may amend the adopted county budget, subject to 14 sections 331.423 through 331.426 331.425 and other applicable 15 state law, to permit increases in any class of proposed 16 expenditures contained in the budget summary published under 17 section 331.434, subsection 3 . 18 Sec. 8. Section 331.441, subsection 2, paragraph c, 19 subparagraph (11), Code 2023, is amended by striking the 20 subparagraph. 21 Sec. 9. REPEAL. Section 331.426, Code 2023, is repealed. 22 Sec. 10. APPLICABILITY. This division of this Act applies 23 to taxes and budgets for fiscal years beginning on or after 24 July 1, 2024. 25 DIVISION II 26 CITY PROPERTY TAXES AND BUDGETS 27 Sec. 11. Section 24.48, subsection 5, Code 2023, is amended 28 by adding the following new paragraph: 29 NEW PARAGRAPH . c. For budgets for fiscal years beginning on 30 or after July 1, 2024, if the political subdivision is a city, 31 a suspension of the statutory property tax levy limitations 32 under this section shall only be approved by the state appeal 33 board in the event of a natural disaster or under the reasons 34 specified in subsection 1, paragraph “c” or “f” . 35 -9- HF 718.2086 (4) 90 md/jh 9/ 74
Sec. 12. Section 28M.5, subsection 1, Code 2023, is amended 1 to read as follows: 2 1. The commission, with the approval of the board of 3 supervisors of participating counties and the city council 4 of participating cities in the chapter 28E agreement, may 5 levy annually a tax not to exceed ninety-five cents per 6 thousand dollars of the assessed value of all taxable property 7 in a regional transit district to the extent provided in 8 this section . The chapter 28E agreement may authorize the 9 commission to levy the tax at different rates within the 10 participating cities and counties in amounts sufficient to meet 11 the revenue responsibilities of such cities and counties as 12 allocated in the budget adopted by the commission. However, 13 for a city participating in a regional transit district, the 14 total of all the tax levies imposed in the city pursuant 15 to section 384.12, subsection 10 1 , and this section shall 16 not exceed the aggregate of ninety-five cents per thousand 17 dollars of the assessed value of all taxable property in the 18 participating city. 19 Sec. 13. Section 37.8, Code 2023, is amended to read as 20 follows: 21 37.8 Levy for Cost of development, operation, and 22 maintenance. 23 For the development, operation, and maintenance of a 24 building or monument constructed, purchased, or donated under 25 this chapter , a city may levy a tax not to exceed eighty-one 26 cents per thousand dollars of assessed value on all the taxable 27 property within the city, as provided in section 384.12, 28 subsection 2 utilize taxes levied under section 384.1 . 29 Sec. 14. Section 384.1, Code 2023, is amended to read as 30 follows: 31 384.1 Taxes certified. 32 1. A city may certify taxes to be levied by the county 33 on all taxable property within the city limits, for all city 34 government purposes. However, the 35 -10- HF 718.2086 (4) 90 md/jh 10/ 74
2. Notwithstanding subsection 3, the tax levied by a 1 city on tracts of land and improvements thereon used and 2 assessed for agricultural or horticultural purposes, shall 3 not exceed three dollars and three-eighths cents per thousand 4 dollars of assessed value in any fiscal year. Improvements 5 located on such tracts of land and not used for agricultural 6 or horticultural purposes and all residential dwellings are 7 subject to the same rate of tax levied by the city on all other 8 taxable property within the city. A 9 3. a. For fiscal years beginning before July 1, 2024, a 10 city’s tax levy for the general fund shall not exceed eight 11 dollars and ten cents per thousand dollars of taxable assessed 12 value used to calculate taxes in any tax fiscal year, except 13 for the levies authorized in section 384.12 . 14 b. Subject to adjustment under paragraph “c” , subparagraph 15 (2), for purposes of this subsection, “adjusted city general 16 fund levy rate” means a levy rate per thousand dollars of 17 assessed value equal to the sum of eight dollars and ten cents 18 per thousand dollars of assessed value plus the sum of the 19 following for the city, as applicable: 20 (1) The amount per thousand dollars of assessed value levied 21 by or on behalf of the city under section 384.8, Code 2023, for 22 the fiscal year beginning July 1, 2023. 23 (2) The total amount per thousand dollars of assessed 24 value levied by or on behalf of the city under section 384.12, 25 subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, and 26 20, Code 2023, for the fiscal year beginning July 1, 2023. 27 (3) The amount per thousand dollars of assessed value levied 28 by the city under section 24.48, Code 2023, for the fiscal year 29 beginning July 1, 2023. 30 c. (1) For each fiscal year beginning on or after July 1, 31 2024, but before July 1, 2028, subject to subparagraph (3), 32 a city’s tax levy for the general fund, except for levies 33 authorized in section 384.12, shall not exceed in any tax year 34 the greater of eight dollars and ten cents per thousand dollars 35 -11- HF 718.2086 (4) 90 md/jh 11/ 74
of assessed value used to calculate taxes for the budget year 1 and the adjusted city general fund levy rate, as adjusted under 2 subparagraph (2), if applicable. 3 (2) (a) If the total assessed value used to calculate taxes 4 under this paragraph for the budget year exceeds one hundred 5 three percent, but is less than one hundred six percent, 6 of the total assessed value used to calculate taxes under 7 this subsection for the current fiscal year, the adjusted 8 city general fund levy rate, as previously adjusted under 9 this subparagraph, if applicable, shall be reduced to a rate 10 per thousand dollars of assessed value that is equal to one 11 thousand multiplied by the quotient of the current fiscal 12 year’s actual property tax dollars certified for levy under 13 this subsection divided by one hundred two percent of the total 14 assessed value used to calculate such taxes for the current 15 fiscal year. For the budget year beginning July 1, 2024, only, 16 the current fiscal year’s actual property tax dollars certified 17 for levy under this subsection shall also include property 18 tax dollar amounts levied under the provisions specified in 19 paragraph “b” , subparagraphs (1), (2), and (3). 20 (b) If the total assessed value used to calculate taxes 21 under this paragraph for the budget year is equal to or exceeds 22 one hundred six percent of the total assessed value used to 23 calculate taxes under this subsection for the current fiscal 24 year, the adjusted city general fund levy rate, as previously 25 adjusted under this subparagraph, if applicable, shall be 26 reduced to a rate per thousand dollars of assessed value that 27 is equal to one thousand multiplied by the quotient of the 28 current fiscal year’s actual property tax dollars certified for 29 levy under this subsection divided by one hundred three percent 30 of the total assessed value used to calculate such taxes for 31 the current fiscal year. For the budget year beginning July 32 1, 2024, only, the current fiscal year’s actual property tax 33 dollars certified for levy under this subsection shall also 34 include property tax dollar amounts levied under the provisions 35 -12- HF 718.2086 (4) 90 md/jh 12/ 74
specified in paragraph “b” , subparagraphs (1), (2), and (3). 1 (3) (a) (i) In addition to the limitation under 2 subparagraph (2), if the city’s actual levy rate imposed 3 under this subsection for the current fiscal year is eight 4 dollars and ten cents or less per thousand dollars of assessed 5 value and the total assessed value used to calculate taxes 6 under this paragraph for the budget year exceeds one hundred 7 three percent, but is less than one hundred six percent, of 8 the total assessed value used to calculate taxes under this 9 subsection for the current fiscal year, the levy rate imposed 10 under this paragraph for the budget year shall not exceed a 11 rate per thousand dollars of assessed value that is equal to 12 one thousand multiplied by the quotient of the current fiscal 13 year’s actual property tax dollars certified for levy under 14 this subsection divided by one hundred two percent of the total 15 assessed value used to calculate taxes under this subsection 16 for the current fiscal year. 17 (ii) For the budget year beginning July 1, 2024, only, the 18 city’s actual levy rate imposed under this subsection for the 19 current fiscal year shall also include the sum of the amounts 20 per thousand dollars of assessed value specified in paragraph 21 “b” , subparagraphs (1), (2), and (3), and the current fiscal 22 year’s actual property tax dollars certified for levy under 23 this subsection shall also include property tax dollar amounts 24 levied by the city under the provisions specified in paragraph 25 “b” , subparagraphs (1), (2), and (3). 26 (b) (i) In addition to the limitation under subparagraph 27 (2), if the city’s actual levy rate imposed under this 28 subsection for the current fiscal year is eight dollars and 29 ten cents or less per thousand dollars of assessed value 30 and the total assessed value used to calculate taxes under 31 this paragraph for the budget year is equal to or exceeds 32 one hundred six percent of the total assessed value used to 33 calculate taxes under this subsection for the current fiscal 34 year, the levy rate imposed under this paragraph for the budget 35 -13- HF 718.2086 (4) 90 md/jh 13/ 74
year shall not exceed a rate per thousand dollars of assessed 1 value that is equal to one thousand multiplied by the quotient 2 of the current fiscal year’s actual property tax dollars 3 certified for levy under this subsection divided by one hundred 4 three percent of the total assessed value used to calculate 5 taxes under this subsection for the current fiscal year. 6 (ii) For the budget year beginning July 1, 2024, only, the 7 city’s actual levy rate imposed under this subsection for the 8 current fiscal year shall also include the sum of the amounts 9 per thousand dollars of assessed value specified in paragraph 10 “b” , subparagraphs (1), (2), and (3), and the current fiscal 11 year’s actual property tax dollars certified for levy under 12 this subsection shall also include property tax dollar amounts 13 levied by the city under the provisions specified in paragraph 14 “b” , subparagraphs (1), (2), and (3). 15 d. For each fiscal year beginning on or after July 1, 2028, 16 a city’s tax levy rate for the general fund, except for levies 17 authorized in section 384.12, shall not exceed eight dollars 18 and ten cents per thousand dollars of assessed value used to 19 calculate taxes in any fiscal year. 20 4. For purposes of this section: 21 a. “Budget year” is the fiscal year beginning during the 22 calendar year in which a budget is certified. 23 b. “Current fiscal year” is the fiscal year ending during 24 the calendar year in which a budget for the budget year is 25 certified. 26 Sec. 15. Section 384.12, Code 2023, is amended to read as 27 follows: 28 384.12 Additional taxes. 29 A city may certify, for the general fund levy, taxes which 30 are not subject to the limit provided in section 384.1 , and 31 which are in addition to any other moneys the city may wish to 32 spend for such purposes, as follows: 33 1. A tax not to exceed thirteen and one-half cents 34 per thousand dollars of assessed value for the support of 35 -14- HF 718.2086 (4) 90 md/jh 14/ 74
instrumental or vocal musical groups, one or more organizations 1 which have tax-exempt status under section 501(c)(3) of 2 the Internal Revenue Code and are organized and operated 3 exclusively for artistic and cultural purposes, or any of these 4 purposes, subject to the following: 5 a. Upon receipt of a petition valid under the provisions of 6 section 362.4 , the council shall submit to the voters at the 7 next regular city election the question of whether a tax shall 8 be levied. 9 b. If a majority approves the levy, it may be imposed. 10 c. The levy can be eliminated by the same procedure of 11 petition and election. 12 d. A tax authorized by an election held prior to the 13 effective date of the city code may be continued until 14 eliminated by the council, or by petition and election. 15 2. A tax not to exceed eighty-one cents per thousand dollars 16 of assessed value for development, operation, and maintenance 17 of a memorial building or monument, subject to the provisions 18 of subsection 1 . 19 3. A tax not to exceed thirteen and one-half cents per 20 thousand dollars of assessed value for support of a symphony 21 orchestra, subject to the provisions of subsection 1 . 22 4. A tax not to exceed twenty-seven cents per thousand 23 dollars of assessed value for the operation of cultural and 24 scientific facilities, subject to the provisions of subsection 25 1 , except that the question may be submitted on the council’s 26 own motion. 27 5. A tax to aid in the construction of a county bridge, 28 subject to the provisions of subsection 1 , except that the 29 question must be submitted at a special election. The expense 30 of a special election under this subsection must be paid by the 31 county. The notice of the special election must include full 32 details of the proposal, including the location of the proposed 33 bridge, the rate of tax to be levied, and all other conditions. 34 6. A tax to aid a company incorporated under the laws of 35 -15- HF 718.2086 (4) 90 md/jh 15/ 74
this state in the construction of a highway or combination 1 bridge across any navigable boundary river of this state, 2 commencing or terminating in the city and suitable for use 3 as highway, or for both highway and railway purposes. This 4 tax levy is subject to the provisions of subsections 1 and 5 . 5 The levy is limited to one dollar and thirty-five cents per 6 thousand dollars of the assessed value of taxable property in 7 the city. The estimated cost of the bridge must be at least 8 ten thousand dollars, and the city aid may not exceed one-half 9 of the estimated cost. The notice of the special election 10 must include the name of the corporation to be aided, and all 11 conditions required of the corporation. Tax moneys received 12 for this purpose may not be paid over by the county treasurer 13 until the city has filed a statement that the corporation has 14 complied with all conditions. 15 7. If a tax has been voted for aid of a bridge under 16 subsection 6 , a further tax may be voted for the purpose of 17 purchasing the bridge, subject to the provisions of subsection 18 1 . The levy under this subsection is limited to three dollars 19 and thirty-seven and one-half cents per thousand dollars of the 20 assessed value of the taxable property in the city, payable in 21 not less than ten annual installments. 22 8. A tax for the purpose of carrying out the terms of a 23 contract for the use of a bridge by a city situated on a river 24 over which a bridge has been built. The tax may not exceed 25 sixty-seven and one-half cents per thousand dollars of assessed 26 value each year. 27 9. A tax for aid to a public transportation company, 28 subject to the procedure provided in subsection 1 , except the 29 question must be submitted at a special election. The levy is 30 limited to three and three-eighths cents per thousand dollars 31 of assessed value. In addition to any other conditions the 32 following requirements must be met before moneys received for 33 this purpose may be paid over by the county treasurer: 34 a. The public transportation company shall provide the city 35 -16- HF 718.2086 (4) 90 md/jh 16/ 74
with copies of state and federal income tax returns for the 1 five years preceding the year for which payment is contemplated 2 or for such lesser period of time as the company has been in 3 operation. 4 b. The city shall, in any given year, be authorized to pay 5 over only such sums as will yield not to exceed two percent 6 of the public transportation company’s investment as the same 7 is valued in its tax depreciation schedule, provided that 8 corporate profits and losses for the five preceding years or 9 for such lesser period of time as the company has been in 10 operation shall not average in excess of a two percent net 11 return. Taxes levied under this subsection may not be used to 12 subsidize losses incurred prior to the election required by 13 this subsection . 14 10. 1. A tax for the operation and maintenance of a 15 municipal transit system or for operation and maintenance of a 16 regional transit district, and for the creation of a reserve 17 fund for the system or district, in an amount not to exceed 18 ninety-five cents per thousand dollars of assessed value each 19 year, when the revenues from the transit system or district are 20 insufficient for such purposes. 21 11. If a city has entered into a lease of a building or 22 complex of buildings to be operated as a civic center, a tax 23 sufficient to pay the installments of rent and for maintenance, 24 insurance and taxes not included in the lease rental payments. 25 12. A tax not to exceed thirteen and one-half cents per 26 thousand dollars of assessed value each year for operating and 27 maintaining a civic center owned by a city. 28 13. A tax not to exceed six and three-fourths cents per 29 thousand dollars of assessed value for planning a sanitary 30 disposal project. 31 14. 2. A tax not to exceed twenty-seven cents per thousand 32 dollars of assessed value each year for an aviation authority 33 as provided in section 330A.15 . 34 15. A tax not to exceed six and three-fourths cents per 35 -17- HF 718.2086 (4) 90 md/jh 17/ 74
thousand dollars of assessed value each year for a levee 1 improvement fund in special charter cities as provided in 2 section 420.155 . 3 16. A tax not to exceed twenty and one-half cents per 4 thousand dollars of assessed value each year to maintain an 5 institution received by gift or devise, subject to an election 6 as required under subsection 1 . 7 17. 3. A tax to pay the premium costs on tort liability 8 insurance, property insurance, and any other insurance that 9 may be necessary in the operation of the city, the costs of a 10 self-insurance program, the costs of a local government risk 11 pool and amounts payable under any insurance agreements to 12 provide or procure such insurance, self-insurance program, or 13 local government risk pool. 14 18. A tax to fund an emergency medical services district 15 under chapter 357G . 16 19. 4. A tax that exceeds any tax levy limit within this 17 chapter , provided the question has been submitted at a special 18 levy election and received a simple majority of the votes cast 19 on the proposition to authorize the enumerated levy limit to be 20 exceeded for the proposed budget year. 21 a. The election may be held as specified in this subsection 22 if notice is given by the city council, not later than 23 forty-six days before the first Tuesday in March, to the county 24 commissioner of elections that the election is to be held. 25 b. An election under this subsection shall be held on 26 the first Tuesday in March and be conducted by the county 27 commissioner of elections in accordance with the law. 28 c. The ballot question shall be in substantially the 29 following form: 30 WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........ ? 31 (Vote for only one of the following choices.) 32 CHANGE LEVY AMOUNT ... 33 Add to the existing levy amount a tax for the purpose of 34 .......... (state purpose of proposed levy) at a rate of ... 35 -18- HF 718.2086 (4) 90 md/jh 18/ 74
(rate) which will provide an additional $ .... (amount). 1 KEEP CURRENT LEVY ... 2 Continue under the current maximum rate of ... , providing 3 $ .... (amount). 4 d. The commissioner of elections conducting the election 5 shall notify the city officials and other county auditors where 6 applicable, of the results within two days of the canvass which 7 shall be held on the second day that is not a holiday following 8 the special levy election, and beginning no earlier than 1:00 9 p.m. on that day. 10 e. Notice of the election shall be published twice in 11 accordance with the provisions of section 362.3 , except that 12 the first such notice shall be given at least two weeks before 13 the election. 14 f. The cost of the election shall be borne by the city. 15 g. The election provisions of this subsection shall 16 supersede other provisions for elections only to the extent 17 necessary to comply with the provisions of this subsection . 18 h. The provisions of this subsection apply to all cities, 19 however organized, including special charter cities which may 20 adopt ordinances where necessary to carry out these provisions. 21 i. The council shall certify the city’s budget with the tax 22 askings not exceeding the amount approved by the special levy 23 election. 24 20. A tax not to exceed twenty-seven cents per thousand 25 dollars of assessed value for support of a public library, 26 subject to petition and referendum requirements of subsection 27 1 , except that if a majority approves the levy, it shall be 28 imposed. 29 21. 5. A tax for the support of a local emergency 30 management commission established pursuant to chapter 29C . 31 Sec. 16. Section 384.24, subsection 4, paragraph i, Code 32 2023, is amended by striking the paragraph. 33 Sec. 17. Section 384.110, Code 2023, is amended to read as 34 follows: 35 -19- HF 718.2086 (4) 90 md/jh 19/ 74
384.110 Insurance, self-insurance, and risk pooling funds. 1 A city may credit funds to a fund or funds for the purposes 2 authorized by section 364.4, subsection 5 ; section 384.12, 3 subsection 17 3 ; or section 384.24, subsection 3 , paragraph “s” . 4 Moneys credited to the fund or funds, and interest earned on 5 such moneys, shall remain in the fund or funds until expended 6 for purposes authorized by section 364.4, subsection 5 ; section 7 384.12, subsection 17 3 ; or section 384.24, subsection 3 , 8 paragraph “s” . 9 Sec. 18. REPEAL. Section 384.8, Code 2023, is repealed. 10 Sec. 19. APPLICABILITY. This division of this Act applies 11 to taxes and budgets for fiscal years beginning on or after 12 July 1, 2024. 13 DIVISION III 14 PUBLIC EDUCATION AND RECREATION TAX LEVY 15 Sec. 20. Section 300.2, Code 2023, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 4. A levy under this chapter shall not be 18 approved by the voters on or after the effective date of this 19 division of this Act. 20 Sec. 21. EFFECTIVE DATE. This division of this Act, being 21 deemed of immediate importance, takes effect upon enactment. 22 DIVISION IV 23 COUNTY SHERIFF FEE REPORT 24 Sec. 22. Section 331.655, subsection 5, Code 2023, is 25 amended by striking the subsection. 26 DIVISION V 27 HOMESTEAD PROPERTY TAX CREDIT 28 Sec. 23. Section 2.48, subsection 3, paragraph f, 29 subparagraph (1), Code 2023, is amended to read as follows: 30 (1) The homestead tax exemption and credit under chapter 31 425 . 32 Sec. 24. Section 25B.7, subsection 2, paragraph a, Code 33 2023, is amended to read as follows: 34 a. Homestead tax credit pursuant to sections section 425.1 , 35 -20- HF 718.2086 (4) 90 md/jh 20/ 74
sections 425.2 through 425.13, and section 425.15 . 1 Sec. 25. Section 103.22, subsection 7, Code 2023, is amended 2 to read as follows: 3 7. Prohibit an owner of property from performing work on the 4 owner’s principal residence, if such residence is an existing 5 dwelling rather than new construction and is not an apartment 6 that is attached to any other apartment or building, as those 7 terms are defined in section 499B.2 , and is not larger than a 8 single-family dwelling, or require such owner to be licensed 9 under this chapter . In order to qualify for inapplicability 10 pursuant to this subsection , a residence shall qualify for the 11 homestead tax exemption credit . 12 Sec. 26. Section 105.11, subsection 3, Code 2023, is amended 13 to read as follows: 14 3. Prohibit an owner of property from performing work on the 15 owner’s principal residence, if such residence is an existing 16 dwelling rather than new construction and is not larger than a 17 single-family dwelling, or farm property, excluding commercial 18 or industrial installations or installations in public use 19 buildings or facilities, or require such owner to be licensed 20 under this chapter . In order to qualify for inapplicability 21 pursuant to this subsection , a residence shall qualify for the 22 homestead tax exemption credit . 23 Sec. 27. Section 331.401, subsection 1, paragraphs e and f, 24 Code 2023, are amended to read as follows: 25 e. Adopt resolutions authorizing the county assessor 26 to provide forms for homestead tax exemption and credit 27 claimants as provided in section 425.2 and military service tax 28 exemptions as provided in section 426A.14 . 29 f. Examine and allow or disallow claims for homestead tax 30 exemption and credit in accordance with section 425.3 and 31 claims for military service tax exemption in accordance with 32 chapter 426A . The board, by a single resolution, may allow or 33 disallow the exemptions recommended by the assessor. 34 Sec. 28. Section 331.512, subsection 3, Code 2023, is 35 -21- HF 718.2086 (4) 90 md/jh 21/ 74
amended to read as follows: 1 3. Carry out duties relating to the homestead tax exemption 2 and credit and agricultural land tax credit as provided in 3 chapters 425 and 426 . 4 Sec. 29. Section 331.559, subsection 12, Code 2023, is 5 amended to read as follows: 6 12. Carry out duties relating to the administration of 7 the homestead tax exemption and credit and other credits as 8 provided in sections 425.4 , 425.5 , 425.7 , 425.9 , 425.10 , and 9 425.25 . 10 Sec. 30. NEW SECTION . 425.1A Homestead tax exemption. 11 1. The following exemptions from taxation shall be allowed 12 in addition to the homestead credit for an owner that has 13 attained the age of sixty-five years by January 1 of the 14 assessment year: 15 a. For the assessment year beginning January 1, 2023, the 16 eligible homestead, not to exceed three thousand two hundred 17 fifty dollars in taxable value. 18 b. For the assessment year beginning January 1, 2024, and 19 each succeeding assessment year, the eligible homestead, not to 20 exceed six thousand five hundred dollars in taxable value. 21 2. Section 25B.7, subsection 1, shall not apply to the 22 property tax exemption provided in this section. 23 Sec. 31. Section 425.2, Code 2023, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 3A. The form for claiming the credit shall 26 also include the ability to claim the exemption under section 27 425.1A for qualified owners. If the claim for the homestead 28 credit is allowed, such allowance shall also include allowance 29 of the homestead exemption if the owner meets the age criteria 30 for the exemption. The homestead exemption shall be allowed 31 for successive years without further filing in the same manner 32 as the homestead credit. 33 Sec. 32. Section 425.3, subsection 4, Code 2023, is amended 34 to read as follows: 35 -22- HF 718.2086 (4) 90 md/jh 22/ 74
4. The county auditor shall forward the claims to the board 1 of supervisors. The board shall allow or disallow the claims. 2 If the board disallows a claim, it shall send written notice, 3 by mail, to the claimant at the claimant’s last known address. 4 The notice shall state the reasons for disallowing the claim 5 for the credit . The board is not required to send notice that 6 a claim is disallowed if the claimant voluntarily withdraws the 7 claim. 8 Sec. 33. Section 425.4, Code 2023, is amended to read as 9 follows: 10 425.4 Certification to treasurer. 11 All claims which have been allowed by the board of 12 supervisors shall be certified on or before August 1, in each 13 year, by the county auditor to the county treasurer, which 14 certificates shall list the total amount of dollars, listed by 15 taxing district in the county, due for homestead tax exemptions 16 and credits claimed and allowed. The county treasurer shall 17 forthwith then certify to the department of revenue the total 18 amount of dollars, listed by taxing district in the county, due 19 for homestead tax credits claimed and allowed. 20 Sec. 34. Section 425.6, Code 2023, is amended to read as 21 follows: 22 425.6 Waiver by neglect. 23 If a person fails to file a claim or to have a claim on file 24 with the assessor for the credits provided in this subchapter , 25 the person is deemed to have waived the homestead exemption 26 and credit for the year in which the person failed to file the 27 claim or to have a claim on file with the assessor. 28 Sec. 35. Section 425.7, subsection 3, Code 2023, is amended 29 to read as follows: 30 3. a. If the department of revenue determines that a claim 31 for homestead exemption and credit has been allowed by the 32 board of supervisors which is not justifiable under the law 33 and not substantiated by proper facts, the department may, at 34 any time within thirty-six months from July 1 of the year in 35 -23- HF 718.2086 (4) 90 md/jh 23/ 74
which the claim is allowed, set aside the allowance. Notice 1 of the disallowance shall be given to the county auditor of 2 the county in which the claim has been improperly granted and 3 a written notice of the disallowance shall also be addressed 4 to the claimant at the claimant’s last known address. The 5 claimant or board of supervisors may appeal to the director 6 of revenue within thirty days from the date of the notice of 7 disallowance. The director shall grant a hearing and if, upon 8 the hearing, the director determines that the disallowance was 9 incorrect, the director shall set aside the disallowance. The 10 director shall notify the claimant and the board of supervisors 11 of the result of the hearing. The claimant or the board of 12 supervisors may seek judicial review of the action of the 13 director of revenue in accordance with chapter 17A . 14 b. If a claim is disallowed by the department of revenue 15 and not appealed to the director of revenue or appealed to 16 the director of revenue and thereafter upheld upon final 17 resolution, including any judicial review, any amounts of 18 exemptions allowed and credits allowed and paid from the 19 homestead credit fund including the penalty, if any, become a 20 lien upon the property on which the exemption or credit was 21 originally granted, if still in the hands of the claimant, 22 and not in the hands of a bona fide purchaser, and any amount 23 so erroneously paid including the penalty, if any, shall be 24 collected by the county treasurer in the same manner as other 25 taxes and the collections shall be returned to the department 26 of revenue and credited to the homestead credit fund. The 27 director of revenue may institute legal proceedings against a 28 homestead credit claimant for the collection of payments made 29 on disallowed credits and the penalty, if any. If a person 30 makes a false claim or affidavit with fraudulent intent to 31 obtain the homestead exemption or credit, the person is guilty 32 of a fraudulent practice and the claim shall be disallowed 33 in full. If the credit has been paid, the amount of the 34 credit plus a penalty equal to twenty-five percent of the 35 -24- HF 718.2086 (4) 90 md/jh 24/ 74
amount of credit plus interest, at the rate in effect under 1 section 421.7 , from the time of payment shall be collected 2 by the county treasurer in the same manner as other property 3 taxes, penalty, and interest are collected and when collected 4 shall be paid to the director of revenue. If a homestead 5 exemption or credit is disallowed and the claimant failed to 6 give written notice to the assessor as required by section 7 425.2 when the property ceased to be used as a homestead by the 8 claimant, a civil penalty equal to five percent of the amount 9 of the disallowed exemption or credit is assessed against the 10 claimant. 11 Sec. 36. Section 425.9, subsections 2 and 3, Code 2023, are 12 amended to read as follows: 13 2. If any claim for exemption or credit made hereunder 14 has been denied by the board of supervisors, and such action 15 is subsequently reversed on appeal, the exemption or credit 16 shall be allowed on the homestead involved in said appeal, and 17 the director of revenue, the county auditor, and the county 18 treasurer shall make such exemption or credit and change their 19 books and records accordingly. 20 3. In the event the appealing taxpayer has paid one or both 21 of the installments of the tax payable in the year or years in 22 question on such homestead valuation, remittance shall be made 23 to such taxpayer of the amount of such credit or exemption . 24 Sec. 37. Section 425.10, Code 2023, is amended to read as 25 follows: 26 425.10 Reversal of allowed claim. 27 In the event any claim is allowed, and subsequently reversed 28 on appeal, any exemption and credit made under the claim shall 29 be void. The amount of the erroneous credit shall be charged 30 against the property in question, and the director of revenue, 31 the county auditor, and the county treasurer are authorized 32 and directed to correct their books and records accordingly. 33 The amount of the erroneous credit, when collected, shall 34 be returned by the county treasurer to the homestead credit 35 -25- HF 718.2086 (4) 90 md/jh 25/ 74
fund to be reallocated the following year as provided in this 1 subchapter . Taxes due following reversal of a claim for an 2 exemption shall be collected by the county treasurer and 3 allocated to the appropriate taxing entities. 4 Sec. 38. Section 425.11, subsection 1, paragraph d, 5 subparagraph (3), Code 2023, is amended to read as follows: 6 (3) It must not embrace more than one dwelling house, but 7 where a homestead has more than one dwelling house situated 8 thereon, the exemption and credit provided for in this 9 subchapter shall apply to the home and buildings used by the 10 owner, but shall not apply to any other dwelling house and 11 buildings appurtenant. 12 Sec. 39. Section 425.11, subsection 1, paragraph e, Code 13 2023, is amended to read as follows: 14 e. “Owner” means the person who holds the fee simple 15 title to the homestead, and in addition shall mean the person 16 occupying as a surviving spouse or the person occupying under 17 a contract of purchase which contract has been recorded in 18 the office of the county recorder of the county in which the 19 property is located; or the person occupying the homestead 20 under devise or by operation of the inheritance laws where 21 the whole interest passes or where the divided interest is 22 shared only by persons related or formerly related to each 23 other by blood, marriage or adoption; or the person occupying 24 the homestead is a shareholder of a family farm corporation 25 that owns the property; or the person occupying the homestead 26 under a deed which conveys a divided interest where the divided 27 interest is shared only by persons related or formerly related 28 to each other by blood, marriage or adoption; or where the 29 person occupying the homestead holds a life estate with the 30 reversion interest held by a nonprofit corporation organized 31 under chapter 504 , provided that the holder of the life estate 32 is liable for and pays property tax on the homestead; or where 33 the person occupying the homestead holds an interest in a 34 horizontal property regime under chapter 499B , regardless 35 -26- HF 718.2086 (4) 90 md/jh 26/ 74
of whether the underlying land committed to the horizontal 1 property regime is in fee or as a leasehold interest, provided 2 that the holder of the interest in the horizontal property 3 regime is liable for and pays property tax on the homestead; 4 or where the person occupying the homestead is a member of a 5 community land trust as defined in 42 U.S.C. §12773, regardless 6 of whether the underlying land is in fee or as a leasehold 7 interest, provided that the member of the community land trust 8 is occupying the homestead and is liable for and pays property 9 tax on the homestead. For the purpose of this subchapter , 10 the word “owner” shall be construed to mean a bona fide owner 11 and not one for the purpose only of availing the person of 12 the benefits of this subchapter . In order to qualify for the 13 homestead tax exemption and credit, evidence of ownership shall 14 be on file in the office of the clerk of the district court 15 or recorded in the office of the county recorder at the time 16 the owner files with the assessor a verified statement of the 17 homestead claimed by the owner as provided in section 425.2 . 18 Sec. 40. Section 425.12, Code 2023, is amended to read as 19 follows: 20 425.12 Indian land. 21 Each forty acres of land, or fraction thereof, occupied by 22 a member or members of the Sac and Fox Indians in Tama county, 23 which land is held in trust by the secretary of the interior of 24 the United States for said Indians, shall be given a homestead 25 tax exemption and credit within the meaning and under the 26 provisions of this subchapter . Application for such homestead 27 tax exemption and credit shall be made to the county auditor of 28 Tama county and may be made by a representative of the tribal 29 council. 30 Sec. 41. Section 425.13, Code 2023, is amended to read as 31 follows: 32 425.13 Conspiracy to defraud. 33 If any two or more persons conspire and confederate together 34 with fraudulent intent to obtain the exemption or credit 35 -27- HF 718.2086 (4) 90 md/jh 27/ 74
provided for under the terms of this subchapter by making a 1 false deed, or a false contract of purchase, they are guilty of 2 a fraudulent practice. 3 Sec. 42. Section 425.16, subsection 1, Code 2023, is amended 4 to read as follows: 5 1. In addition to the homestead tax credit allowed under 6 section 425.1, subsections 1 through 4 , and the homestead 7 exemption under section 425.lA, if applicable, persons who 8 own or rent their homesteads and who meet the qualifications 9 provided in this subchapter are eligible for a property 10 tax credit for property taxes due or reimbursement of rent 11 constituting property taxes paid. 12 Sec. 43. Section 425.17, subsections 4 and 8, Code 2023, are 13 amended to read as follows: 14 4. “Homestead” means the dwelling owned or rented and 15 actually used as a home by the claimant during the period 16 specified in subsection 2 , and so much of the land surrounding 17 it including one or more contiguous lots or tracts of land, 18 as is reasonably necessary for use of the dwelling as a home, 19 and may consist of a part of a multidwelling or multipurpose 20 building and a part of the land upon which it is built. It 21 does not include personal property except that a manufactured 22 or mobile home may be a homestead. Any dwelling or a part of 23 a multidwelling or multipurpose building which is exempt from 24 taxation , except for an exemption under section 425.1A, does 25 not qualify as a homestead under this subchapter . However, 26 solely for purposes of claimants living in a property and 27 receiving reimbursement for rent constituting property taxes 28 paid immediately before the property becomes tax exempt, and 29 continuing to live in it after it becomes tax exempt, the 30 property shall continue to be classified as a homestead. 31 A homestead must be located in this state. When a person 32 is confined in a nursing home, extended-care facility, or 33 hospital, the person shall be considered as occupying or living 34 in the person’s homestead if the person is the owner of the 35 -28- HF 718.2086 (4) 90 md/jh 28/ 74
homestead and the person maintains the homestead and does not 1 lease, rent, or otherwise receive profits from other persons 2 for the use of the homestead. 3 8. “Property taxes due” means property taxes including any 4 special assessments, but exclusive of delinquent interest and 5 charges for services, due on a claimant’s homestead in this 6 state, but includes only property taxes for which the claimant 7 is liable and which will actually be paid by the claimant. 8 However, if the claimant is a person whose property taxes have 9 been suspended under sections 427.8 and 427.9 , “property taxes 10 due” means property taxes including any special assessments, 11 but exclusive of delinquent interest and charges for services, 12 due on a claimant’s homestead in this state, but includes only 13 property taxes for which the claimant is liable and which 14 would have to be paid by the claimant if the payment of the 15 taxes has not been suspended pursuant to sections 427.8 and 16 427.9 . “Property taxes due” shall be computed with no deduction 17 for any credit under this subchapter or for any homestead 18 credit allowed under section 425.1 subchapter I . Each claim 19 shall be based upon the taxes due during the fiscal year next 20 following the base year. If a homestead is owned by two or 21 more persons as joint tenants or tenants in common, and one or 22 more persons are not members of claimant’s household, “property 23 taxes due” is that part of property taxes due on the homestead 24 which equals the ownership percentage of the claimant and the 25 claimant’s household. The county treasurer shall include with 26 the tax receipt a statement that if the owner of the property 27 is eighteen years of age or over, the person may be eligible 28 for the credit allowed under this subchapter . If a homestead 29 is an integral part of a farm, the claimant may use the total 30 property taxes due for the larger unit. If a homestead is an 31 integral part of a multidwelling or multipurpose building the 32 property taxes due for the purpose of this subsection shall be 33 prorated to reflect the portion which the value of the property 34 that the household occupies as its homestead is to the value 35 -29- HF 718.2086 (4) 90 md/jh 29/ 74
of the entire structure. For purposes of this subsection , 1 “unit” refers to that parcel of property covered by a single tax 2 statement of which the homestead is a part. 3 Sec. 44. Section 435.26, subsection 1, paragraph a, Code 4 2023, is amended to read as follows: 5 a. A mobile home or manufactured home which is located 6 outside a manufactured home community or mobile home park shall 7 be converted to real estate by being placed on a permanent 8 foundation and shall be assessed for real estate taxes. A 9 home, after conversion to real estate, is eligible for the 10 homestead tax exemption and credit and the military service 11 tax exemption as provided in sections 425.2 and chapter 425, 12 subchapter I, and section 426A.11 . A taxable mobile home or 13 manufactured home which is located outside of a manufactured 14 home community or mobile home park as of January 1, 1995, is 15 also exempt from the permanent foundation requirements of this 16 chapter until the home is relocated. 17 Sec. 45. Section 435.26A, subsection 3, Code 2023, is 18 amended to read as follows: 19 3. After the surrender of a manufactured home’s certificate 20 of title under this section , the manufactured home shall 21 continue to be taxed under section 435.22 and is not eligible 22 for the homestead tax exemption and credit or the military 23 service tax exemption and credit . A foreclosure action on a 24 manufactured home whose title has been surrendered under this 25 section shall be conducted as a real estate foreclosure. A tax 26 lien and its priority shall remain the same on a manufactured 27 home after its certificate of title has been surrendered. 28 Sec. 46. Section 499A.14, Code 2023, is amended to read as 29 follows: 30 499A.14 Taxation. 31 The real estate shall be taxed in the name of the 32 cooperative, and each member of the cooperative shall pay 33 that member’s proportionate share of the tax in accordance 34 with the proration formula set forth in the bylaws, and each 35 -30- HF 718.2086 (4) 90 md/jh 30/ 74
member occupying an apartment as a residence shall receive 1 that member’s proportionate homestead tax exemption and credit 2 and each veteran of the military services of the United States 3 identified as such under the laws of the state of Iowa or the 4 United States shall receive as a credit that member’s veterans 5 tax benefit as prescribed by the laws of the state of Iowa. 6 Sec. 47. EXISTING HOMESTEAD CLAIMS. Homestead credit 7 claims approved under chapter 425, subchapter I, prior to and 8 valid on the effective date of this division of this Act shall 9 result in a homestead exemption under chapter 425, subchapter 10 I, as enacted in this division of this Act, without further 11 filing by the claimant if the claimant meets the criteria for 12 the exemption and the assessor has appropriate information to 13 verify such eligibility. 14 Sec. 48. EFFECTIVE DATE. This division of this Act, being 15 deemed of immediate importance, takes effect upon enactment. 16 Sec. 49. RETROACTIVE APPLICABILITY. This division of this 17 Act applies retroactively to assessment years beginning on or 18 after January 1, 2023. 19 DIVISION VI 20 MILITARY SERVICE PROPERTY TAX EXEMPTION AND CREDIT 21 Sec. 50. Section 25B.7, subsection 2, paragraph c, Code 22 2023, is amended by striking the paragraph. 23 Sec. 51. Section 426A.1A, Code 2023, is amended to read as 24 follows: 25 426A.1A Appropriation. 26 There For each fiscal year beginning before July 1, 2024, 27 there is appropriated from the general fund of the state the 28 amounts necessary to fund the credits provided under this 29 chapter . 30 Sec. 52. Section 426A.2, Code 2023, is amended to read as 31 follows: 32 426A.2 Military service tax credit. 33 The For each fiscal year beginning before July 1, 2024, the 34 moneys appropriated under section 426A.1A shall be apportioned 35 -31- HF 718.2086 (4) 90 md/jh 31/ 74
each year so as to replace all or a portion of the tax which 1 would be due on property eligible for military service tax 2 exemption in the state, if the property were subject to 3 taxation, the amount of the credit to be not more than six 4 dollars and ninety-two cents per thousand dollars of assessed 5 value of property which would be subject to the tax, except for 6 the military service tax exemption. 7 Sec. 53. Section 426A.11, subsections 1 and 2, Code 2023, 8 are amended to read as follows: 9 1. The property, not to exceed two thousand seven hundred 10 seventy-eight dollars in taxable value for assessment years 11 beginning before January 1, 2023 , of any veteran, as defined in 12 section 35.1 , of World War I. 13 2. a. The property, not to exceed one thousand eight 14 hundred fifty-two dollars in taxable value for assessment years 15 beginning before January 1, 2023 , of an honorably separated, 16 retired, furloughed to a reserve, placed on inactive status, 17 or discharged veteran, as defined in section 35.1, subsection 18 2 , paragraph “a” or “b” . 19 b. The property, not to exceed four thousand dollars in 20 taxable value for the assessment years beginning on or after 21 January 1, 2023, of an honorably separated, retired, furloughed 22 to a reserve, placed on inactive status, or discharged veteran, 23 as defined in section 35.1, subsection 2, paragraph “a” or “b” . 24 Sec. 54. IMPLEMENTATION. Section 25B.7, subsection 1, 25 shall not apply to the property tax exemption provided in this 26 Act. 27 Sec. 55. EFFECTIVE DATE. This division of this Act, being 28 deemed of immediate importance, takes effect upon enactment. 29 Sec. 56. RETROACTIVE APPLICABILITY. This division of this 30 Act applies retroactively to assessment years beginning on or 31 after January 1, 2023. 32 DIVISION VII 33 PROPERTY TAX BENEFITS AND INCENTIVES 34 Sec. 57. NEW SECTION . 404.3C Assessment agreements —— 35 -32- HF 718.2086 (4) 90 md/jh 32/ 74
commercial property. 1 1. For revitalization areas established under this chapter 2 on or after the effective date of this division of this Act 3 and for first-year exemption applications for property located 4 in a revitalization area in existence on the effective date 5 of this division of this Act filed on or after the effective 6 date of this division of this Act, commercial property shall 7 not receive a tax exemption under this chapter unless the city 8 or county, as applicable, and the owner of the qualified real 9 estate enter into a written assessment agreement specifying a 10 minimum actual value until a specified termination date for the 11 duration of the exemption period. 12 2. a. The assessment agreement shall be presented to the 13 appropriate assessor. The assessor shall review the plans and 14 specifications for the improvements to be made to the property 15 and if the minimum actual value contained in the assessment 16 agreement appears to be reasonable, the assessor shall execute 17 the following certification upon the agreement: 18 The undersigned assessor, being legally responsible for the 19 assessment of the above described property upon completion of 20 the improvements to be made on it, certifies that the actual 21 value assigned to that land and improvements upon completion 22 shall not be less than $......... 23 b. The assessment agreement with the certification of 24 the assessor and a copy of this subsection shall be filed in 25 the office of the county recorder of the county where the 26 property is located. Upon completion of the improvements, 27 the assessor shall value the property as required by law, 28 except that the actual value shall not be less than the minimum 29 actual value contained in the assessment agreement. This 30 subsection does not prohibit the assessor from assigning a 31 higher actual value to the property or prohibit the owner 32 from seeking administrative or legal remedies to reduce the 33 actual value assigned except that the actual value shall not 34 be reduced below the minimum actual value contained in the 35 -33- HF 718.2086 (4) 90 md/jh 33/ 74
assessment agreement. An assessor, county auditor, board of 1 review, director of revenue, or court of this state shall not 2 reduce or order the reduction of the actual value below the 3 minimum actual value in the agreement during the term of the 4 agreement regardless of the actual value which may result from 5 the incomplete construction of improvements, destruction or 6 diminution by any cause, insured or uninsured, except in the 7 case of acquisition or reacquisition of the property by a 8 public entity. Recording of an assessment agreement complying 9 with this subsection constitutes notice of the assessment 10 agreement to a subsequent purchaser or encumbrancer of the land 11 or any part of it, whether voluntary or involuntary, and is 12 binding upon a subsequent purchaser or encumbrancer. 13 Sec. 58. NEW SECTION . 404.3D Exemptions for residential 14 property. 15 For revitalization areas established under this chapter on 16 or after the effective date of this division of this Act and 17 for first-year exemption applications for property located in a 18 revitalization area in existence on the effective date of this 19 division of this Act filed on or after the effective date of 20 this division of this Act, an exemption authorized under this 21 chapter for property that is residential property shall not 22 apply to property tax levies imposed by a school district. 23 Sec. 59. EFFECTIVE DATE. This division of this Act takes 24 effect July 1, 2024. 25 DIVISION VIII 26 TRANSIT FUNDING 27 Sec. 60. Section 364.2, subsection 4, paragraph f, 28 subparagraph (1), subparagraph division (b), Code 2023, is 29 amended to read as follows: 30 (b) For franchise fees assessed and collected during fiscal 31 years beginning on or after July 1, 2013 2024 , but before 32 July 1, 2030, by a city that is the subject of a judgment, 33 court-approved settlement, or court-approved compromise 34 providing for payment of restitution, a refund, or a return 35 -34- HF 718.2086 (4) 90 md/jh 34/ 74
described in section 384.3A, subsection 3 , paragraph “j” with 1 a population exceeding two hundred thousand , the rate of the 2 franchise fee shall not exceed seven and one-half percent 3 of gross revenues generated from sales of the franchisee in 4 the city, and franchise fee amounts assessed and collected 5 during such fiscal years in excess of five percent of gross 6 revenues generated from sales shall be used solely for the 7 purpose specified in section 384.3A, subsection 3 , paragraph 8 “j” . A city may assess and collect a franchise fee in excess 9 of five percent of gross revenues generated from the sales 10 of the franchisee pursuant to this subparagraph division (b) 11 for a period not to exceed seven consecutive fiscal years 12 once the franchise fee is first imposed at a rate in excess 13 of five percent. An ordinance increasing the franchise fee 14 rate to greater than five percent pursuant to this subparagraph 15 division (b) shall not become effective unless approved at 16 an election. After passage of the ordinance, the council 17 shall submit the proposal at a special election held on a date 18 specified in section 39.2, subsection 4 , paragraph “b” . If a 19 majority of those voting on the proposal approves the proposal, 20 the city may proceed as proposed. The complete text of the 21 ordinance shall be included on the ballot and the full text 22 of the ordinance posted for the voters pursuant to section 23 52.25 . All absentee voters shall receive the full text of the 24 ordinance along with the absentee ballot. This subparagraph 25 division (b) is repealed July 1, 2030. 26 Sec. 61. Section 384.3A, subsection 3, paragraph j, Code 27 2023, is amended to read as follows: 28 j. For franchise fees assessed and collected by a city in 29 excess of five percent of gross revenues generated from sales 30 of the franchisee within the city pursuant to section 364.2, 31 subsection 4 , paragraph “f” , subparagraph (1), subparagraph 32 division (b), during fiscal years beginning on or after July 1, 33 2013 2024 , but before July 1, 2030, the adjustment, renewal, 34 or extension of any part or all of the legal indebtedness of 35 -35- HF 718.2086 (4) 90 md/jh 35/ 74
a city, whether evidenced by bonds, warrants, court-approved 1 settlements, court-approved compromises, or judgments, or the 2 funding or refunding of the same, if such legal indebtedness 3 relates to restitution, a refund, or a return ordered by a 4 court of competent jurisdiction for franchise fees assessed 5 and collected by the city before June 20, 2013 solely for the 6 reduction of property tax levies that support the operation and 7 maintenance of a municipal transit system or a regional transit 8 district or to maintain transportation service levels of a 9 municipal transit system or a regional transit district . This 10 paragraph “j” is repealed July 1, 2030. 11 Sec. 62. EFFECTIVE DATE. This division of this Act takes 12 effect July 1, 2024. 13 DIVISION IX 14 COUNTY AUDITOR VALUATION REPORTS 15 Sec. 63. Section 331.510, subsections 3 and 4, Code 2023, 16 are amended to read as follows: 17 3. An annual report not later than January 1 to the 18 department of management of the valuation by class of property 19 for each taxing district in the county on forms provided by the 20 department of management. The valuations reported shall be 21 those valuations used for determining the levy rates necessary 22 to fund the budgets of the taxing districts for the following 23 fiscal year. Each annual report under this subsection for 24 assessment years beginning on or after January 1, 2024, 25 shall distinguish such values as revaluation or other type of 26 addition to value, as defined and submitted in the assessor’s 27 abstract transmitted to the department of revenue under section 28 441.45. 29 4. An annual report not later than January 1 to the 30 governing body of each taxing district in the county of the 31 assessed valuations of taxable property in the taxing district 32 as reported to the department of management. Each annual 33 report under this subsection for assessment years beginning 34 on or after January 1, 2024, shall distinguish such values as 35 -36- HF 718.2086 (4) 90 md/jh 36/ 74
revaluation or other type of addition to value, as defined 1 and submitted in the assessor’s abstract transmitted to the 2 department of revenue under section 441.45. 3 DIVISION X 4 LOCAL GOVERNMENT BUDGETS AND TAXPAYER STATEMENTS 5 Sec. 64. NEW SECTION . 24.2A Budget statements to owners 6 and taxpayers. 7 1. For purposes of this section only: 8 a. “Budget year” is the fiscal year beginning during the 9 calendar year in which a budget is certified. 10 b. “Current fiscal year” is the fiscal year ending during 11 the calendar year in which a budget for the budget year is 12 certified. 13 c. “Effective property tax rate” means the property tax rate 14 per one thousand dollars of assessed value and is equal to 15 one thousand multiplied by the quotient of the current fiscal 16 year’s actual property tax dollars certified for levy divided 17 by the total assessed value used to calculate taxes for the 18 budget year. 19 d. “Political subdivision” means a school district, a 20 county, or a city. 21 2. a. On or before March 15 of each year, each political 22 subdivision shall file with the department of management a 23 report containing all necessary information for the department 24 of management to compile and calculate amounts required to be 25 included in the statements mailed under paragraph “b” . 26 b. Not later than March 20, the county auditor, using 27 information compiled and calculated by the department of 28 management under paragraph “a” , shall send to each property 29 owner or taxpayer within the county by regular mail an 30 individual statement containing all of the following for 31 each of the political subdivisions comprising the owner’s or 32 taxpayer’s taxing district: 33 (1) The sum of the current fiscal year’s actual property 34 taxes certified for levy for all of the political subdivision’s 35 -37- HF 718.2086 (4) 90 md/jh 37/ 74
levies and the combined property tax rate per one thousand 1 dollars for such tax amount for the current fiscal year. 2 (2) The combined effective property tax rate for the 3 political subdivision calculated using the sum of the current 4 fiscal year’s actual property taxes certified for levy for all 5 of the political subdivision’s levies under subparagraph (1). 6 (3) The combined amount of the proposed property tax dollars 7 to be certified for all of the political subdivision’s levies 8 for the budget year and the proposed combined property tax rate 9 per one thousand dollars for such levies. 10 (4) If the proposed property tax dollars specified 11 under subparagraph (3) exceeds the current fiscal year’s 12 actual property tax dollars certified for levy specified in 13 subparagraph (1), a detailed statement of the major reasons for 14 the increase, including the specific purposes or programs for 15 which the political subdivision is proposing an increase. 16 (5) An example comparing the amount of property taxes on 17 a residential property with an actual value of one hundred 18 thousand dollars in the current fiscal year and such amount 19 on the residential property using the proposed property 20 tax dollars for the budget year, including the percentage 21 difference in such amounts. 22 (6) An example comparing the amount of property taxes 23 on a commercial property with an actual value of one hundred 24 thousand dollars in the current fiscal year and such amount on 25 the commercial property using the proposed property tax dollars 26 for the budget year, including the percentage difference in 27 such amounts. 28 (7) The political subdivision’s percentage of total 29 property taxes certified for levy in the owner’s or taxpayer’s 30 taxing district in the current fiscal year among all taxing 31 authorities. 32 (8) The date, time, and location of the political 33 subdivision’s public hearing required under subsection 4. 34 (9) Information on how to access on the political 35 -38- HF 718.2086 (4) 90 md/jh 38/ 74
subdivision’s internet site the political subdivision’s 1 statements under this section and other budget documents for 2 prior fiscal years. 3 3. The department of management shall prescribe the form 4 for the report required under subsection 2, paragraph “a” , the 5 statements required to be mailed under subsection 2, paragraph 6 “b” , and the public hearing notice required under subsection 4, 7 paragraph “b” . 8 4. a. Each political subdivision shall set a time and 9 place for a public hearing on the political subdivision’s 10 proposed property tax amount for the budget year and the 11 political subdivision’s information included in the statements 12 under subsection 2. At the hearing, the governing body 13 of the political subdivision shall receive oral or written 14 testimony from any resident or property owner of the political 15 subdivision. This public hearing shall be separate from 16 any other meeting of the governing body of the political 17 subdivision, including any other meeting or public hearing 18 relating to the political subdivision’s budget, and other 19 business of the political subdivision that is not related to 20 the proposed property tax amounts and the information in the 21 statements shall not be conducted at the public hearing. After 22 all testimony has been received and considered, the governing 23 body may decrease, but not increase, the proposed property tax 24 amount to be included in the political subdivision’s budget. 25 b. (1) If the political subdivision is a county, notice 26 of the public hearing shall be published not less than ten 27 nor more than twenty days prior to the hearing in the county 28 newspapers selected under chapter 349. 29 (2) If the political subdivision is a city, notice of the 30 public hearing shall be published not less than ten nor more 31 than twenty days prior to the hearing in a newspaper published 32 at least once weekly and having general circulation in the 33 city. However, if the city has a population of two hundred or 34 less, publication may be made by posting in three public places 35 -39- HF 718.2086 (4) 90 md/jh 39/ 74
in the city. 1 (3) If the political subdivision is a school district, 2 notice of the public hearing shall be published not less 3 than ten nor more than twenty days prior to the hearing in 4 a newspaper published in the school district, if any, and if 5 not, then in a newspaper of general circulation in the school 6 district. 7 c. Notice of the hearing shall also be posted and clearly 8 identified on the political subdivision’s internet site 9 for public viewing beginning on the date of the newspaper 10 publication and shall be maintained on the political 11 subdivision’s internet site with all such prior year notices 12 and copies of the statements mailed under subsection 2. 13 Additionally, if the political subdivision maintains a social 14 media account on one or more social media applications, the 15 public hearing notice or an electronic link to the public 16 hearing notice shall be posted on each such account on the same 17 day as the publication of the notice. 18 Sec. 65. Section 24.3, unnumbered paragraph 1, Code 2023, 19 is amended to read as follows: 20 A municipality shall not certify or levy in any fiscal year 21 any tax on property subject to taxation unless and until the 22 following estimates have been made, filed, and considered, 23 and for school districts, the individual statements have been 24 mailed and public hearings held, as provided in this chapter : 25 Sec. 66. Section 24.10, Code 2023, is amended to read as 26 follows: 27 24.10 Levies void. 28 The verified proof of the publication of the notice under 29 section 24.9 shall be filed in the office of the county auditor 30 and preserved by the auditor. A levy shall not be valid unless 31 and until that notice is such notices are published , mailed, 32 and filed. However, failure of an owner or taxpayer to receive 33 a statement under section 24.2A shall not invalidate a levy. 34 Sec. 67. Section 24.17, subsection 1, Code 2023, is amended 35 -40- HF 718.2086 (4) 90 md/jh 40/ 74
to read as follows: 1 1. The local budgets of the various political subdivisions 2 shall be certified by the chairperson of the certifying 3 board or levying board, as the case may be, in duplicate to 4 the county auditor not later than March 15 April 30 of each 5 year on forms, and pursuant to instructions, prescribed by 6 the department of management. However, if the political 7 subdivision is a county or a city, its budget shall be 8 certified not later than March 31 of each year, and if the 9 political subdivision is a school district, as defined in 10 section 257.2 , its budget shall be certified not later than 11 April 15 of each year. 12 Sec. 68. Section 24.27, subsection 1, Code 2023, is amended 13 to read as follows: 14 1. Not later than March 25, or April 10 for a county or 15 a city, or April 25 if the municipality is a school district 16 May 10 , a number of persons in any municipality political 17 subdivision equal to one-fourth of one percent of those voting 18 for the office of governor, at the last general election in the 19 municipality political subdivision , but the number shall not be 20 less than ten, and the number need not be more than one hundred 21 persons, who are affected by any proposed budget, expenditure 22 or tax levy, or by any item thereof, may appeal from any 23 decision of the certifying board or the levying board by filing 24 with the county auditor of the county in which the municipal 25 corporation political subdivision is located, a written protest 26 setting forth their objections to the budget, expenditure or 27 tax levy, or to one or more items thereof, and the grounds for 28 their objections. If a budget is certified after March 15, or 29 March 31 in the case of a county or a city, or April 15 in the 30 case of a school district 30 , all appeal time limits shall be 31 extended to correspond to allowances for a timely filing. 32 Sec. 69. Section 24.28, Code 2023, is amended to read as 33 follows: 34 24.28 Hearing on protest. 35 -41- HF 718.2086 (4) 90 md/jh 41/ 74
The state board, within a reasonable time, shall fix a date 1 for an initial hearing on the protest and may designate a 2 deputy to hold the hearing, which shall be held in the county 3 or in one of the counties in which the municipality political 4 subdivision is located. Notice of the time and place of the 5 hearing shall be given by certified mail to the appropriate 6 officials of the local government and to the first ten property 7 owners whose names appear upon the protest, at least five 8 days before the date fixed for the hearing. At all hearings, 9 the burden shall be upon the objectors with reference to any 10 proposed item in the budget which was included in the budget 11 of the previous year and which the objectors propose should 12 be reduced or excluded; but the burden shall be upon the 13 certifying board or the levying board, as the case may be, 14 to show that any new item in the budget, or any increase in 15 any item in the budget, is necessary, reasonable, and in the 16 interest of the public welfare. 17 Sec. 70. Section 24.48, subsection 4, Code 2023, is amended 18 to read as follows: 19 4. The city finance committee shall have officially 20 notified any city of its approval, modification or rejection 21 of the city’s appeal of the decision of the director of the 22 department of management regarding a city’s request for a 23 suspension of the statutory property tax levy limitation prior 24 to thirty-five days before March 31 April 30 . 25 Sec. 71. Section 275.29, subsection 1, Code 2023, is amended 26 to read as follows: 27 1. Between July 1 and July 20, or on a date determined by 28 agreement of the initial board and the boards of districts 29 receiving territory of the school districts affected, but not 30 later than August 30, the initial board shall meet with the 31 boards of districts receiving territory of the school districts 32 affected, for the purpose of reaching joint agreement on an 33 equitable division of the assets and an equitable distribution 34 of the liabilities of the school districts affected. In 35 -42- HF 718.2086 (4) 90 md/jh 42/ 74
addition, if outstanding general obligation indebtedness is in 1 existence in any district, the initial board of directors of 2 the newly formed school district shall meet with the boards of 3 all school districts affected prior to April 15 30 prior to 4 the school year the reorganization is effective to determine 5 the distribution of liability for payment of the general 6 obligation bonded indebtedness between the districts so that 7 the newly formed district may certify its budget under the 8 procedures specified in chapter 24 . The boards shall consider 9 the mandatory levy required in section 76.2 and shall assure 10 the satisfaction of outstanding obligations. If a school 11 district affected by the reorganization has outstanding bonds 12 issued under section 423E.5 or 423F.4 , the joint agreement 13 shall assure that the estimated revenue under section 423F.2 14 for each district to which liability for payment of such bonds 15 is assigned is sufficient for the payment of principal and 16 interest on the outstanding bonds required to be paid in the 17 budget year following reorganization. 18 Sec. 72. Section 298.2, subsection 1, paragraph b, Code 19 2023, is amended to read as follows: 20 b. For school budget years beginning on or after July 1, 21 2015, a school district may by resolution of the board of 22 directors adopted prior to April 15 30 preceding the budget 23 year impose a physical plant and equipment levy at a rate in 24 excess of the levy rate limitations under paragraph “a” if the 25 board has refunded or refinanced a loan agreement entered into 26 under section 297.36 and such refunding or refinancing complies 27 with the maturity period authorized under section 297.36, 28 subsection 1 , paragraph “c” , and results in a lower amount of 29 interest on the amount of the loan agreement. However, the 30 rate imposed by a school district under this paragraph shall 31 not exceed the rate imposed during the budget year in which 32 the loan agreement was refunded or refinanced. Authorization 33 to exceed the levy rate limitations of paragraph “a” shall 34 terminate upon the maturity of the loan agreement after 35 -43- HF 718.2086 (4) 90 md/jh 43/ 74
refunding or refinancing. Upon adoption of the resolution 1 under this paragraph “b” , the board shall comply with the 2 requirements of section 297.36, subsection 1 , paragraph “b” . 3 Sec. 73. Section 298.2, subsection 3, Code 2023, is amended 4 to read as follows: 5 3. The board of directors of a school district may certify 6 for levy by April 15 30 of a school year a tax on all taxable 7 property in the school district for the regular physical plant 8 and equipment levy. 9 Sec. 74. Section 298.2, subsection 4, paragraph b, Code 10 2023, is amended to read as follows: 11 b. If a combination of a property tax and income surtax is 12 used, by April 15 30 of the previous school year, the board 13 shall certify the percent of the income surtax to be imposed 14 and the amount to be raised to the department of management 15 and the department of management shall establish the rate of 16 the property tax and income surtax for the school year. The 17 physical plant and equipment property tax and income surtax 18 shall be levied or imposed, collected, and paid to the school 19 district in the manner provided for the instructional support 20 program in sections 257.21 through 257.26 . 21 Sec. 75. Section 298.4, subsection 1, unnumbered paragraph 22 1, Code 2023, is amended to read as follows: 23 The board of directors of a school district may certify for 24 levy by April 15 30 of a school year, a tax on all taxable 25 property in the school district for a district management levy. 26 The revenue from the tax levied in this section shall be placed 27 in the district management levy fund of the school district. 28 The district management levy shall be expended only for the 29 following purposes: 30 Sec. 76. Section 298.10, subsection 1, Code 2023, is amended 31 to read as follows: 32 1. The board of directors of a school district may certify 33 for levy by April 15 30 of a school year, a tax on all taxable 34 property in the school district in order to raise an amount 35 -44- HF 718.2086 (4) 90 md/jh 44/ 74
for a necessary cash reserve for a school district’s general 1 fund. The amount raised for a necessary cash reserve does not 2 increase a school district’s authorized expenditures as defined 3 in section 257.7 . 4 Sec. 77. Section 300.2, subsection 2, Code 2023, is amended 5 to read as follows: 6 2. If a majority of the votes cast upon the proposition is 7 in favor of the proposition, the board shall certify the amount 8 required for a fiscal year to the county board of supervisors 9 by April 15 30 of the preceding fiscal year. The board of 10 supervisors shall levy the amount certified. The amount shall 11 be placed in the public education and recreation levy fund of 12 the district and shall be used only for the purposes specified 13 in this chapter . 14 Sec. 78. Section 303.66, subsection 2, Code 2023, is amended 15 to read as follows: 16 2. Taxes levied by the board shall be certified on or 17 before the first day of March April 30 to the county auditor 18 of each county where any of the property included within the 19 territorial limits of the land use district is located, and 20 shall be placed upon the tax list for the current year. The 21 county treasurer shall collect the taxes in the same manner as 22 other taxes. When delinquent, the taxes shall draw the same 23 interest and penalties as other taxes. All taxes so levied and 24 collected shall be paid over to the treasurer of the district. 25 Sec. 79. Section 309.22, subsection 1, Code 2023, is amended 26 to read as follows: 27 1. On or before the fifteenth day of April May 15 of 28 each year the board of supervisors, with the assistance of 29 the county engineer, shall, subject to the approval of the 30 department, adopt a secondary road construction program which 31 shall include a project accomplishment list for the next 32 fiscal year, and a project priority list for the succeeding 33 four fiscal years based upon the construction funds, local 34 secondary and farm-to-market, estimated to be available for the 35 -45- HF 718.2086 (4) 90 md/jh 45/ 74
period. Subject to departmental approval, any project on the 1 approved priority list may be advanced to and constructed in 2 the accomplishment year and the project accomplishment list may 3 be revised due to unforeseen conditions. 4 Sec. 80. Section 331.422, unnumbered paragraph 1, Code 5 2023, is amended to read as follows: 6 Subject to this section and sections 331.423 through 331.426 7 or as otherwise provided by state law, the board of each county 8 shall certify property taxes annually at its March April 9 session to be levied for county purposes as follows: 10 Sec. 81. Section 331.434, unnumbered paragraph 1, Code 11 2023, is amended to read as follows: 12 Annually, the board of each county, subject to section 13 331.403, subsection 4 , sections 331.423 through 331.426 , 14 section 331.433A , the applicable portions of chapter 24, and 15 other applicable state law, shall prepare and adopt a budget, 16 certify taxes, and provide appropriations as follows: 17 Sec. 82. Section 331.434, subsection 3, Code 2023, is 18 amended to read as follows: 19 3. Following, and not until, adoption of the resolution 20 under section 331.433A , the requirements of section 24.2A are 21 completed, the board shall set a time and place for a public 22 hearing on the budget before the final certification date and 23 shall publish notice of the hearing not less than ten nor more 24 than twenty days prior to the hearing in the county newspapers 25 selected under chapter 349 . A summary of the proposed budget 26 and a description of the procedure for protesting the county 27 budget under section 331.436 , in the form prescribed by the 28 director of the department of management, shall be included 29 in the notice. Proof of publication of the notice under this 30 subsection 3 and a copy of the resolution adopted under section 31 331.433A shall be filed with and preserved by the county 32 auditor. A levy is not valid unless and until the notice is 33 published and the notice and resolution adopted under section 34 331.433A are filed individual statements under section 24.2A 35 -46- HF 718.2086 (4) 90 md/jh 46/ 74
are mailed . The department of management shall prescribe the 1 form for the public hearing notice for use by counties. 2 Sec. 83. Section 331.434, subsection 5, paragraph a, Code 3 2023, is amended to read as follows: 4 a. After the hearing, the board shall adopt by resolution 5 a budget and certificate of taxes for the next fiscal year 6 and shall direct the auditor to properly certify and file the 7 budget and certificate of taxes as adopted. The board shall 8 not adopt a tax in excess of the estimate published or the 9 applicable amounts specified in the resolution adopted under 10 section 331.433A , except a tax which is approved by a vote of 11 the people, and a greater tax than that adopted shall not be 12 levied or collected. A county budget and certificate of taxes 13 adopted for the following fiscal year becomes effective on the 14 first day of that year. 15 Sec. 84. Section 331.434, subsection 7, Code 2023, is 16 amended to read as follows: 17 7. Taxes levied by a county whose budget is certified after 18 March 31 April 30 shall be limited to the prior year’s budget 19 amount. However, this penalty may be waived by the director 20 of the department of management if the county demonstrates 21 that the March 31 deadline was missed because of circumstances 22 beyond the control of the county. 23 Sec. 85. Section 331.435, subsection 2, Code 2023, is 24 amended to read as follows: 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 mailing individual statements 29 under section 24.2A , and the amendment is subject to protest as 30 provided in section 331.436 , except that the director of the 31 department of management may by rule provide that amendments 32 of certain types or up to certain amounts may be made without 33 public hearing and without being subject to protest. A county 34 budget for the ensuing fiscal year shall be amended by May 31 35 -47- HF 718.2086 (4) 90 md/jh 47/ 74
to allow time for a protest hearing to be held and a decision 1 rendered before June 30. An amendment of a budget after May 2 31 which is properly appealed but without adequate time for 3 hearing and decision before June 30 is void. 4 Sec. 86. Section 331.436, Code 2023, is amended to read as 5 follows: 6 331.436 Protest. 7 Protests to the adopted budget must be made in accordance 8 with sections 24.27 through 24.32 as if the county were the 9 municipality under those sections except that the protest must 10 be filed no later than April May 10 and the number of people 11 necessary to file a protest under