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 this section shall not be 12 less than one hundred. 13 Sec. 87. Section 347.13, subsection 12, Code 2023, is 14 amended to read as follows: 15 12. Fix the amount necessary for the improvement and 16 maintenance of the hospital and for support of ambulance 17 service during the ensuing fiscal year, and certify the amount 18 to the county auditor before March 15 April 30 of each year, 19 subject to any limitation in section 347.7 . 20 Sec. 88. Section 358.18, subsection 2, as amended by 2023 21 Iowa Acts, House File 541, section 1, if enacted, is amended 22 to read as follows: 23 2. All taxes thus levied by the board of trustees shall 24 be certified by the clerk on or before March 15 April 30 to 25 the county auditor of each county wherein any of the property 26 included within the territorial limits of the sanitary district 27 is located, and shall be placed upon the tax list for the 28 current fiscal year by the auditor or auditors. The county 29 treasurer, or treasurers, of more than one county, shall 30 collect all taxes so levied in the same manner as other taxes, 31 and when delinquent the taxes shall draw the same interest. 32 All taxes levied and collected shall be paid over by the 33 officer collecting the taxes to the treasurer of the sanitary 34 district. 35 -48- HF 718.2086 (4) 90 md/jh 48/ 74

Sec. 89. Section 358C.14, subsection 2, Code 2023, is 1 amended to read as follows: 2 2. All taxes thus levied by the board shall be certified by 3 the clerk on or before March 1 April 30 to the county auditor 4 of each county in which any of the property included within 5 the territorial limits of the district is located, and shall 6 be placed upon the tax list for the current fiscal year by the 7 auditor. The county treasurer of more than one county shall 8 collect all taxes so levied in the same manner as other taxes, 9 and when delinquent the taxes shall draw the same interest. 10 All taxes levied and collected shall be paid over by the 11 officer collecting the taxes to the treasurer of the district. 12 Sec. 90. Section 359.49, subsections 7 and 9, Code 2023, are 13 amended to read as follows: 14 7. After the meeting on the proposed budget, the board of 15 trustees shall adopt by resolution a budget for at least the 16 next fiscal year, and the clerk shall certify the necessary 17 tax levy for the next fiscal year to the county auditor and 18 the county board of supervisors by March 15 April 30 . The tax 19 levy certified may be less than but shall not be more than 20 the amount estimated in the proposed budget submitted at the 21 meeting. Two copies each of the detailed budget as adopted and 22 of the certified tax levy must be transmitted to the county 23 auditor by March 15 April 30 . 24 9. Taxes from a township levy shall be collected but not 25 disbursed by the county to a township until copies of the 26 township budget are transmitted to the county auditor as 27 required in subsection 7 . If a township fails to certify 28 property taxes by March 15 April 30 , the amount of taxes 29 collected by the county for the township shall be the amount 30 collected for the township in the previous fiscal year to the 31 extent that it does not exceed the applicable levy rate limits 32 in this chapter . However, that amount may not exceed the 33 amount the township could collect based on property assessments 34 for the fiscal year for which the township failed to certify 35 -49- HF 718.2086 (4) 90 md/jh 49/ 74

property taxes. 1 Sec. 91. Section 384.2, subsection 1, Code 2023, is amended 2 to read as follows: 3 1. Except as otherwise provided for special charter cities, 4 a city’s fiscal year shall be as provided in section 24.2, 5 subsection 3 . All city property taxes must be certified by 6 a city to the county auditor on or before March 31 April 7 30 of each year, unless otherwise provided by state law. 8 However, municipal utilities, if not supported by taxation 9 or the proceeds of outstanding indebtedness payable from 10 taxes may, with the council’s consent, choose to operate on a 11 fiscal year which is the calendar year. The receipt by the 12 utility of payments from other governmental funds for public 13 fire protection, street lighting, or other public use of the 14 utility’s services shall not be deemed support by taxation. 15 After notice and hearing in the same manner as required for the 16 city’s regular budget under section 384.16 , the utility budget 17 must be approved by resolution of the council not later than 18 twenty days prior to the beginning of the calendar year for 19 which the budget applies. 20 Sec. 92. Section 384.16, unnumbered paragraph 1, Code 2023, 21 is amended to read as follows: 22 Annually, a city that has satisfied the requirements of 23 section 384.15A and section 384.22, subsection 3 , and the 24 applicable portions of chapter 24, shall prepare and adopt a 25 budget, and shall certify taxes as follows: 26 Sec. 93. Section 384.16, subsections 3, 5, and 6, Code 2023, 27 are amended to read as follows: 28 3. Following, and not until, adoption of the resolution 29 under section 384.15A , requirements of section 24.2A are 30 completed, the council shall set a time and place for public 31 hearing on the budget before the final certification date and 32 shall publish notice of the hearing not less than ten nor more 33 than twenty days before the hearing in a newspaper published 34 at least once weekly and having general circulation in the 35 -50- HF 718.2086 (4) 90 md/jh 50/ 74

city. However, if the city has a population of two hundred 1 or less, publication may be made by posting in three public 2 places in the city. A summary of the proposed budget and a 3 description of the procedure for protesting the city budget 4 under section 384.19 , in the form prescribed by the director of 5 the department of management, shall be included in the notice. 6 Proof of publication of the notice under this subsection 3 and 7 a copy of the resolution adopted under section 384.15A must be 8 filed with the county auditor. The department of management 9 shall prescribe the form for the public hearing notice for use 10 by cities. 11 5. After the hearing, the council shall adopt by resolution 12 a budget for at least the next fiscal year, and the clerk 13 shall certify the necessary tax levy for the next fiscal year 14 to the county auditor and the county board of supervisors. 15 The tax levy certified may be less than but not more than 16 the amount estimated in the proposed budget submitted at 17 the final hearing or the applicable amount specified in the 18 resolution adopted under section 384.15A , unless an additional 19 tax levy is approved at a city election. Two copies each of 20 the detailed budget as adopted and of the tax certificate must 21 be transmitted to the county auditor, who shall complete the 22 certificates and transmit a copy of each to the department of 23 management. 24 6. Taxes levied by a city whose budget is certified after 25 March 31 April 30 shall be limited to the prior year’s budget 26 amount. However, this penalty may be waived by the director of 27 the department of management if the city demonstrates that the 28 March 31 deadline was missed because of circumstances beyond 29 the control of the city. 30 Sec. 94. Section 384.17, Code 2023, is amended to read as 31 follows: 32 384.17 Levy by county. 33 At the time required by law, the county board of supervisors 34 shall levy the taxes necessary for each city fund for the 35 -51- HF 718.2086 (4) 90 md/jh 51/ 74

following fiscal year. The levy must be as shown in the 1 adopted city budget and as certified by the clerk, subject to 2 any changes made after a protest hearing, and any additional 3 tax rates approved at a city election. A city levy is not valid 4 until proof of publication or posting of notice of a budget 5 hearing under section 384.16, subsection 3 , and the notice and 6 resolution adopted under section 384.15A are is filed with 7 the county auditor and individual statements are mailed under 8 section 24.2A . 9 Sec. 95. Section 384.18, subsection 2, Code 2023, is amended 10 to read as follows: 11 2. A budget amendment must be prepared and adopted in the 12 same manner as the original budget, as provided in section 13 384.16 , excluding the requirement for the mailing of individual 14 statements under section 24.2A, and is subject to protest as 15 provided in section 384.19 , except that the committee may by 16 rule provide that amendments of certain types or up to certain 17 amounts may be made without public hearing and without being 18 subject to protest. A city budget shall be amended by May 19 31 of the current fiscal year to allow time for a protest 20 hearing to be held and a decision rendered before June 30. The 21 amendment of a budget after May 31, which is properly appealed 22 but without adequate time for hearing and decision before June 23 30 is void. 24 Sec. 96. REPEAL. Sections 331.433A and 384.15A, Code 2023, 25 are repealed. 26 Sec. 97. IMPLEMENTATION. Section 25B.2, subsection 3, 27 shall not apply to this division of this Act. 28 Sec. 98. APPLICABILITY. This division of this Act applies 29 to political subdivision budgets for fiscal years beginning on 30 or after July 1, 2024. 31 DIVISION XI 32 DRIVER’S LICENSES AND NONOPERATOR’S IDENTIFICATION CARDS 33 Sec. 99. Section 321M.9, subsection 1, paragraph a, Code 34 2023, is amended by adding the following new subparagraph: 35 -52- HF 718.2086 (4) 90 md/jh 52/ 74

NEW SUBPARAGRAPH . (4) The ten-dollar convenience fee 1 collected pursuant to subsection 1A. 2 Sec. 100. Section 321M.9, Code 2023, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 1A. Convenience fee. A county authorized 5 to issue driver’s licenses under this chapter may charge, in 6 addition to any other fee imposed by law, a convenience fee for 7 the issuance or renewal of a driver’s license or nonoperator’s 8 identification card to a person who is not a resident of the 9 county, unless that person pays property tax to the county 10 and provides proof of payment such as a receipt as provided 11 in section 445.5, subsection 6, or another form of proof as 12 determined by the county. The convenience fee shall be ten 13 dollars. 14 DIVISION XII 15 WRITING FEES 16 Sec. 101. Section 321G.27, subsection 1, paragraphs a, b, 17 and c, Code 2023, are amended by striking the paragraphs. 18 Sec. 102. Section 321G.27, subsection 1, Code 2023, is 19 amended by adding the following new paragraph: 20 NEW PARAGRAPH . 0d. The county recorder shall collect 21 a writing fee of two dollars for each privilege under this 22 chapter. 23 Sec. 103. Section 321G.29, subsection 3, Code 2023, is 24 amended to read as follows: 25 3. An owner of a snowmobile shall apply to the county 26 recorder for issuance of a certificate of title within thirty 27 days after acquisition. The application shall be on forms 28 the department prescribes and accompanied by the required fee 29 specified in section 321G.30 and the writing fee specified in 30 section 321G.27 . The application shall include a certification 31 signed in writing containing substantially the representation 32 that statements made are true and correct to the best of the 33 applicant’s knowledge, information, and belief, under penalty 34 of perjury. The application shall contain the date of sale 35 -53- HF 718.2086 (4) 90 md/jh 53/ 74

and gross price of the snowmobile or the fair market value if 1 no sale immediately preceded the transfer and any additional 2 information the department requires. If the application is 3 made for a snowmobile last previously registered or titled in 4 another state or foreign country, the application shall contain 5 this information and any other information the department 6 requires. 7 Sec. 104. Section 321G.31, Code 2023, is amended to read as 8 follows: 9 321G.31 Transfer or repossession by operation of law. 10 1. If ownership of a snowmobile is transferred by 11 operation of law, such as by inheritance, order in bankruptcy, 12 insolvency, replevin, or execution sale, the transferee, within 13 thirty days after acquiring the right to possession of the 14 snowmobile, shall mail or deliver to the county recorder of 15 the transferee’s county of residence satisfactory proof of 16 ownership as the county recorder requires, together with an 17 application for a new certificate of title, and the required 18 fee , plus the writing fee specified in section 321G.27 . 19 However, if the transferee is the surviving spouse of the 20 deceased owner, the county recorder shall waive the required 21 fee fees . 22 2. If a lienholder repossesses a snowmobile by operation of 23 law and holds it for resale, the lienholder shall secure a new 24 certificate of title and shall pay the required fee , plus the 25 writing fee specified in section 321G.27 . 26 Sec. 105. Section 321G.32, subsection 1, Code 2023, is 27 amended by adding the following new paragraph: 28 NEW PARAGRAPH . c. The application shall be accompanied by 29 the writing fee specified in section 321G.27. 30 Sec. 106. Section 321I.29, subsection 1, paragraphs a, b, 31 and c, Code 2023, are amended by striking the paragraphs. 32 Sec. 107. Section 321I.29, subsection 1, Code 2023, is 33 amended by adding the following new paragraph: 34 NEW PARAGRAPH . 0d. The county recorder shall collect 35 -54- HF 718.2086 (4) 90 md/jh 54/ 74

a writing fee of two dollars for each privilege under this 1 chapter. 2 Sec. 108. Section 321I.31, subsection 3, Code 2023, is 3 amended to read as follows: 4 3. An owner of an all-terrain vehicle shall apply to 5 the county recorder for issuance of a certificate of title 6 within thirty days after acquisition. The application shall 7 be on forms the department prescribes and accompanied by the 8 required fee specified in section 321I.32 and the writing fee 9 specified in section 321I.29 . The application shall include a 10 certification signed in writing containing substantially the 11 representation that statements made are true and correct to the 12 best of the applicant’s knowledge, information, and belief, 13 under penalty of perjury. The application shall contain the 14 date of sale and gross price of the all-terrain vehicle or the 15 fair market value if no sale immediately preceded the transfer 16 and any additional information the department requires. If the 17 application is made for an all-terrain vehicle last previously 18 registered or titled in another state or foreign country, 19 the application shall contain this information and any other 20 information the department requires. 21 Sec. 109. Section 321I.33, Code 2023, is amended to read as 22 follows: 23 321I.33 Transfer or repossession by operation of law. 24 1. If ownership of an all-terrain vehicle is transferred by 25 operation of law, such as by inheritance, order in bankruptcy, 26 insolvency, replevin, or execution sale, the transferee, 27 within thirty days after acquiring the right to possession of 28 the all-terrain vehicle, shall mail or deliver to the county 29 recorder of the transferee’s county of residence satisfactory 30 proof of ownership as the county recorder requires, together 31 with an application for a new certificate of title, and 32 the required fee , plus the writing fee specified in section 33 321I.29 . However, if the transferee is the surviving spouse 34 of the deceased owner, the county recorder shall waive the 35 -55- HF 718.2086 (4) 90 md/jh 55/ 74

required fee fees . 1 2. If a lienholder repossesses an all-terrain vehicle by 2 operation of law and holds it for resale, the lienholder shall 3 secure a new certificate of title and shall pay the required 4 fee , plus the writing fee specified in section 321I.29 . 5 Sec. 110. Section 321I.34, subsection 1, Code 2023, is 6 amended by adding the following new paragraph: 7 NEW PARAGRAPH . c. The application shall be accompanied by 8 the writing fee specified in section 321I.29. 9 Sec. 111. Section 462A.53, Code 2023, is amended to read as 10 follows: 11 462A.53 Amount of writing fees. 12 A writing fee of one dollar and twenty-five cents two dollars 13 for each privilege shall be collected by the county recorder. 14 Sec. 112. Section 462A.77, subsection 4, Code 2023, is 15 amended to read as follows: 16 4. Every owner of a vessel subject to titling under this 17 chapter shall apply to the county recorder for issuance of a 18 certificate of title for the vessel within thirty days after 19 acquisition. The application shall be on forms the department 20 prescribes, and accompanied by the required fee specified 21 in section 462A.78 and the writing fee specified in section 22 462A.53 . The application shall be signed and shall include a 23 certification signed in writing containing substantially the 24 representation that statements made are true and correct to the 25 best of the applicant’s knowledge, information, and belief, 26 under penalty of perjury. The application shall contain 27 the date of sale and gross price of the vessel or the fair 28 market value if no sale immediately preceded the transfer, and 29 any additional information the department requires. If the 30 application is made for a vessel last previously registered or 31 titled in another state or foreign country, it shall contain 32 this information and any other information the department 33 requires. 34 Sec. 113. Section 462A.82, subsections 1 and 2, Code 2023, 35 -56- HF 718.2086 (4) 90 md/jh 56/ 74

are amended to read as follows: 1 1. If ownership of a vessel is transferred by operation of 2 law, such as by inheritance, order in bankruptcy, insolvency, 3 replevin, execution sale, or in compliance with section 578A.7 , 4 the transferee, within thirty days after acquiring the right 5 to possession of the vessel by operation of law, shall mail or 6 deliver to the county recorder satisfactory proof of ownership 7 as the county recorder requires, together with an application 8 for a new certificate of title, and the required fee , plus the 9 writing fee specified in section 462A.53 . However, if the 10 transferee is the surviving spouse of the deceased owner, the 11 county recorder shall waive the required fee fees . A title tax 12 is not required on these transactions. 13 2. If a lienholder repossesses a vessel by operation of 14 law and holds it for resale, the lienholder shall secure a new 15 certificate of title and shall pay the required fee , plus the 16 writing fee specified in section 462A.53 . 17 Sec. 114. Section 462A.84, subsection 1, Code 2023, is 18 amended by adding the following new paragraph: 19 NEW PARAGRAPH . c. The application shall be accompanied by 20 the writing fee specified in section 462A.53. 21 DIVISION XIII 22 BOND ELECTIONS 23 Sec. 115. Section 28E.16, Code 2023, is amended to read as 24 follows: 25 28E.16 Election for bonds. 26 When bonds which require a vote of the people are to be 27 issued for financing joint facilities of a county and one or 28 more cities within the county, pursuant to an agreement made 29 under the authority of this chapter , or pursuant to other 30 provisions of law, the board of supervisors and the council of 31 each city shall arrange for a single election on the question 32 of issuing the bonds, but if the county and the cities are 33 proposing to make separate bond issues, the ballot shall 34 contain separate questions, one to be voted upon by all voters 35 -57- HF 718.2086 (4) 90 md/jh 57/ 74

of the county, and one or more to be voted upon only by the 1 voters of the city which is to make a separate bond issue. All 2 elections on the question of issuing the bonds shall be held on 3 the date specified in section 39.2, subsection 4, paragraph “d” . 4 Sec. 116. Section 39.2, subsection 4, Code 2023, is amended 5 to read as follows: 6 4. Unless otherwise provided by law, special elections on 7 public measures are limited to the following dates: 8 a. For Except as provided in paragraph “d” , for a county, in 9 an odd-numbered year, the first Tuesday in March, the second 10 Tuesday in September, or the first Tuesday after the first 11 Monday in November. For a county, in an even-numbered year, 12 the first Tuesday in March, the second Tuesday in September, or 13 the first Tuesday after the first Monday in November. 14 b. For Except as provided in paragraph “d” , for a city, in 15 an odd-numbered year, the first Tuesday in March, the second 16 Tuesday in September, or the first Tuesday after the first 17 Monday in November. For a city, in an even-numbered year, the 18 first Tuesday in March or the second Tuesday in September. 19 c. For Except as provided in paragraph “d” , for a school 20 district or merged area, in the odd-numbered year, the first 21 Tuesday in March, the second Tuesday in September, or the first 22 Tuesday after the first Monday in November. For a school 23 district or merged area, in the even-numbered year, the first 24 Tuesday in March, or the second Tuesday in September. 25 d. For any political subdivision of this state, if the 26 special election is in whole or in part for the question of 27 issuing bonds or other indebtedness, the first Tuesday after 28 the first Monday in November. 29 Sec. 117. NEW SECTION . 39.5 Notice of bond election. 30 In addition to any other notice related to the election 31 required by law to be published, posted, or provided, if the 32 election is subject to section 39.2, subsection 4, paragraph 33 “d” , the commissioner shall not less than ten nor more than 34 twenty days before the day of each election mail to each 35 -58- HF 718.2086 (4) 90 md/jh 58/ 74

registered voter of the applicable jurisdiction a notice of the 1 election that includes the full text of the public measure to 2 be voted upon at the election. 3 Sec. 118. Section 75.1, subsection 1, paragraph a, Code 4 2023, is amended to read as follows: 5 a. When a proposition to authorize an issuance of bonds 6 by a county, township, school corporation, city, or by any 7 local board or commission, is submitted to the electors, such 8 proposition shall not be deemed carried or adopted, anything 9 in the statutes to the contrary notwithstanding, unless the 10 vote in favor of such authorization is equal to at least sixty 11 percent of the total vote cast for and against said proposition 12 at said election. All elections on such proposition shall 13 be held on the date specified in section 39.2, subsection 4, 14 paragraph “d” . 15 Sec. 119. Section 75.1, subsection 2, Code 2023, is amended 16 by striking the subsection. 17 Sec. 120. Section 279.39, Code 2023, is amended to read as 18 follows: 19 279.39 School buildings. 20 The board of any school corporation shall establish 21 attendance centers and provide suitable buildings for each 22 school in the district and may at the regular or a special 23 meeting resolve to submit to the registered voters of the 24 district at an election held on a date specified in section 25 39.2, subsection 4 , paragraph “c” , the question of voting a tax 26 or authorizing the board to issue bonds, or both. 27 Sec. 121. Section 296.3, Code 2023, is amended to read as 28 follows: 29 296.3 Election called. 30 Within ten days of receipt of a petition filed under section 31 296.2 , the president of the board of directors shall call a 32 meeting of the board. The meeting shall be held within thirty 33 days after the petition was received. At the meeting, the 34 board shall call the election, fixing the time of the election , 35 -59- HF 718.2086 (4) 90 md/jh 59/ 74

which may be at the time and place of holding the regular 1 school election as required by section 39.2, subsection 4, 2 paragraph “d” . However, if the board determines by unanimous 3 vote that the proposition or propositions requested by a 4 petition to be submitted at an election are grossly unrealistic 5 or contrary to the needs of the school district, no election 6 shall be called. If more than one petition has been received 7 by the time the board meets to consider the petition triggering 8 the meeting, the board shall act upon the petitions in the 9 order they were received at the meeting called to consider the 10 initial petition. The decision of the board may be appealed to 11 the state board of education as provided in chapter 290 . The 12 president shall notify the county commissioner of elections of 13 the time of the election. 14 Sec. 122. Section 298.21, unnumbered paragraph 1, Code 15 2023, is amended to read as follows: 16 The board of directors of any school corporation when 17 authorized by the voters at an election held on a date 18 specified in section 39.2, subsection 4 , paragraph “c” “d” , 19 may issue the negotiable, interest-bearing school bonds of the 20 corporation for borrowing money for any or all of the following 21 purposes: 22 Sec. 123. Section 331.442, subsection 3, Code 2023, is 23 amended to read as follows: 24 3. a. All elections held pursuant to this section shall 25 be held on the date specified in section 39.2, subsection 4, 26 paragraph “d” . 27 b. Notice of the election shall be given by publication as 28 specified in section 331.305 . At the election the ballot used 29 for the submission of the proposition shall be in substantially 30 the form for submitting special questions at general elections. 31 Sec. 124. Section 346.27, subsection 10, paragraph a, Code 32 2023, is amended to read as follows: 33 a. After the incorporation of an authority, and before the 34 sale of any issue of revenue bonds, except refunding bonds, the 35 -60- HF 718.2086 (4) 90 md/jh 60/ 74

authority shall submit to the voters the question of whether 1 the authority shall issue and sell revenue bonds. The ballot 2 shall state the amount of the bonds and the purposes for 3 which the authority is incorporated. All registered voters 4 of the county shall be entitled to vote on the question. The 5 question may shall be submitted at an election held on a the 6 date specified in section 39.2, subsection 4 , paragraph “a” or 7 “b” , as applicable “d” . An affirmative vote of a majority of 8 the votes cast on the question is required to authorize the 9 issuance and sale of revenue bonds. 10 Sec. 125. Section 357C.10, Code 2023, is amended to read as 11 follows: 12 357C.10 Bonds in anticipation of revenue. 13 Benefited street lighting districts may anticipate the 14 collection of taxes by the levy herein provided, and to carry 15 out the purposes of this chapter may issue bonds payable 16 in not more than ten equal installments, with the rate of 17 interest thereon not exceeding that permitted by chapter 74A . 18 No indebtedness shall be incurred under this chapter until 19 authorized by an election. Such election shall be held and 20 notice given in the same manner as the election provided herein 21 for the authorization of a tax levy, and the same sixty percent 22 vote shall be necessary to authorize indebtedness. Both 23 Subject to section 39.2, subsection 4, both propositions may be 24 submitted to the voters in the same election. 25 Sec. 126. Section 357D.11, Code 2023, is amended to read as 26 follows: 27 357D.11 Bonds in anticipation of revenue. 28 A district may anticipate the collection of taxes by the 29 levy authorized in this chapter , and to carry out the purposes 30 of this chapter may issue bonds payable in not more than ten 31 equal installments with the rate of interest not exceeding 32 that permitted by chapter 74A . An indebtedness shall not be 33 incurred under this chapter until authorized by an election. 34 The election shall be held and notice given in the same manner 35 -61- HF 718.2086 (4) 90 md/jh 61/ 74

as provided in section 357D.8 , and the same sixty percent vote 1 shall be necessary to authorize indebtedness. Both Subject to 2 section 39.2, subsection 4, both propositions may be submitted 3 to the voters at the same election. 4 Sec. 127. Section 357E.11, Code 2023, is amended to read as 5 follows: 6 357E.11 Bonds in anticipation of revenue. 7 A district, other than a combined district, may anticipate 8 the collection of taxes by the levy authorized in this chapter , 9 and to carry out the purposes of this chapter may issue bonds 10 payable in not more than twenty equal installments with the 11 rate of interest not exceeding that permitted by chapter 74A . 12 An indebtedness shall not be incurred under this section 13 until authorized by an election. The election shall be held 14 and notice given in the same manner as provided in section 15 357E.8 , and the same majority vote is necessary to authorize 16 indebtedness. Both Subject to section 39.2, subsection 4, 17 both propositions may be submitted to the voters at the same 18 election. 19 Sec. 128. Section 357E.11A, subsection 3, Code 2023, is 20 amended to read as follows: 21 3. Except for the issuance of refunding bonds, an 22 indebtedness shall not be incurred under this section until 23 authorized by an election. The election shall be held and 24 notice given in the same manner as provided in section 357E.8 , 25 except that a proposition to authorize indebtedness is 26 approved if sixty percent of those voting on the proposition 27 vote in favor of the proposition. A Subject to section 28 39.2, subsection 4, a proposition for the authorization 29 of indebtedness may be submitted to the voters at the same 30 election as the election under section 357E.8 . 31 Sec. 129. Section 357F.11, Code 2023, is amended to read as 32 follows: 33 357F.11 Bonds in anticipation of revenue. 34 A district may anticipate the collection of taxes authorized 35 -62- HF 718.2086 (4) 90 md/jh 62/ 74

in this chapter , and to carry out the purposes of this chapter 1 may issue bonds payable in not more than ten equal installments 2 with the rate of interest not exceeding that permitted by 3 chapter 74A . An indebtedness shall not be incurred under this 4 chapter until authorized by an election. The election shall 5 be held and notice given in the same manner as provided in 6 section 357F.8 , and a sixty percent vote shall be necessary 7 to authorize indebtedness. Both Subject to section 39.2, 8 subsection 4, both propositions may be submitted to the voters 9 at the same election. 10 Sec. 130. Section 357G.11, Code 2023, is amended to read as 11 follows: 12 357G.11 Bonds in anticipation of revenue. 13 A district may anticipate the collection of taxes authorized 14 in this chapter , and to carry out the purposes of this chapter 15 may issue bonds payable in not more than ten equal installments 16 with the rate of interest not exceeding that permitted by 17 chapter 74A . An indebtedness shall not be incurred under this 18 chapter until authorized by an election. The election shall 19 be held and notice given in the same manner as provided in 20 section 357G.8 , and a sixty percent vote shall be necessary 21 to authorize indebtedness. Both Subject to section 39.2, 22 subsection 4, both propositions may be submitted to the voters 23 at the same election. 24 Sec. 131. Section 357I.12, Code 2023, is amended to read as 25 follows: 26 357I.12 Bonds in anticipation of revenue. 27 A district may anticipate the collection of taxes by the 28 levy authorized in this chapter , and to carry out the purposes 29 of this chapter may issue bonds payable in not more than ten 30 equal installments with the rate of interest not exceeding 31 that permitted by chapter 74A . An indebtedness shall not be 32 incurred under this chapter until authorized by an election. 33 The election shall be held and notice given in the same manner 34 as provided in section 357I.8 , and the same sixty percent vote 35 -63- HF 718.2086 (4) 90 md/jh 63/ 74

shall be necessary to authorize indebtedness. Both Subject to 1 section 39.2, subsection 4, both propositions may be submitted 2 to the voters at the same election. 3 Sec. 132. Section 384.26, subsections 2 and 3, Code 2023, 4 are amended to read as follows: 5 2. Before the council may institute proceedings for the 6 issuance of bonds for a general corporate purpose, it shall 7 call a special city election to vote upon the question of 8 issuing the bonds. At the election the proposition must be 9 submitted in the following form: 10 Shall the ............ (insert the name of the city) issue 11 its bonds in an amount not exceeding the amount of $ .... for 12 the purpose of .......... ? 13 3. a. All elections held pursuant to this section shall 14 be held on the date specified in section 39.2, subsection 4, 15 paragraph “d” . 16 b. Notice of the election must be given by publication 17 as required by section 49.53 in a newspaper of general 18 circulation in the city. At the election the ballot used for 19 the submission of the proposition must be in substantially the 20 form for submitting special questions at general elections. 21 Sec. 133. Section 394.2, subsection 1, Code 2023, is amended 22 to read as follows: 23 1. It shall not be necessary to submit to the voters the 24 proposition of issuing bonds for refunding purposes, but prior 25 to the issuance of bonds for other purposes the council shall 26 submit to the voters of the city at a general election or a 27 regular city election on the date specified in section 39.2, 28 subsection 4, paragraph “d” , the proposition of issuing the 29 bonds. Notice of the election on the proposition of issuing 30 bonds shall be published as required by section 49.53 . The 31 notice shall also state whether or not an admission fee is to 32 be charged by the zoo or zoological gardens. 33 Sec. 134. Section 423F.4, subsection 2, paragraph b, Code 34 2023, is amended to read as follows: 35 -64- HF 718.2086 (4) 90 md/jh 64/ 74

b. For bonds subject to the requirements of paragraph 1 “a” , if at any time prior to the fifteenth day following the 2 hearing, the secretary of the board of directors receives a 3 petition containing the required number of signatures and 4 asking that the question of the issuance of such bonds be 5 submitted to the voters of the school district, the board shall 6 either rescind its adoption of the resolution or direct the 7 county commissioner of elections to submit the question to the 8 registered voters of the school district at an election held on 9 a the date specified in section 39.2, subsection 4 , paragraph 10 “c” “d” . The petition must be signed by eligible electors equal 11 in number to not less than one hundred or thirty percent of 12 the number of voters at the last preceding election of school 13 officials under section 277.1 , whichever is greater. If the 14 board submits the question at an election and a majority of 15 those voting on the question favors issuance of the bonds, the 16 board shall be authorized to issue the bonds. 17 Sec. 135. IMPLEMENTATION OF ACT. Section 25B.2, subsection 18 3, shall not apply to this division of this Act. 19 Sec. 136. APPLICABILITY. This division of this Act applies 20 July 1, 2023, for elections on propositions relating to the 21 issuing of bonds or other indebtedness occurring on or after 22 that date. 23 DIVISION XIV 24 COUNTY AND CITY FINANCING 25 Sec. 137. Section 8.6, Code 2023, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 17. County and city bond issuance. To 28 annually prepare and file with the general assembly by December 29 1 a report specifying the updated population thresholds as 30 adjusted under section 331.442, subsection 5, and section 31 384.26, subsection 5, and detailing the use of the bond 32 issuance procedures under section 331.442, subsection 5, and 33 section 384.26, subsection 5, including the usage of such 34 procedures by counties and cities based on the population-based 35 -65- HF 718.2086 (4) 90 md/jh 65/ 74

limitations and the amount of bonds issued for each such usage. 1 Sec. 138. Section 331.301, subsection 10, paragraph e, 2 subparagraph (1), Code 2023, is amended to read as follows: 3 (1) (a) The board must follow substantially the 4 authorization procedures of section 331.443 to authorize 5 a lease or lease-purchase contract for personal property 6 which is payable from the general fund. The board must 7 follow substantially the authorization procedures of section 8 331.443 to authorize a lease or lease-purchase contract for 9 real property which is payable from the general fund if the 10 principal amount of the lease-purchase contract does not exceed 11 the following limits: 12 (i) Four Five hundred twenty thousand dollars in a county 13 having a population of twenty-five thousand or less. 14 (ii) Five Six hundred fifty thousand dollars in a county 15 having a population of more than twenty-five thousand but not 16 more than fifty thousand. 17 (iii) Six Seven hundred eighty thousand dollars in a county 18 having a population of more than fifty thousand but not more 19 than one hundred thousand. 20 (iv) Eight hundred One million forty thousand dollars in a 21 county having a population of more than one hundred thousand 22 but not more than two hundred thousand. 23 (v) One million three hundred thousand dollars in a county 24 having a population of more than two hundred thousand. 25 (b) However, if the principal amount of a lease or 26 lease-purchase contract pursuant to this subparagraph (1) is 27 less than twenty-five thirty-two thousand five hundred dollars, 28 the board may authorize the lease or lease-purchase contract 29 without following the authorization procedures of section 30 331.443 . 31 Sec. 139. Section 331.402, subsection 3, paragraph d, 32 subparagraph (1), subparagraph divisions (a), (b), (c), (d), 33 and (e), Code 2023, are amended to read as follows: 34 (a) Four Five hundred twenty thousand dollars in a county 35 -66- HF 718.2086 (4) 90 md/jh 66/ 74

having a population of twenty-five thousand or less. 1 (b) Five Six hundred fifty thousand dollars in a county 2 having a population of more than twenty-five thousand but not 3 more than fifty thousand. 4 (c) Six Seven hundred eighty thousand dollars in a county 5 having a population of more than fifty thousand but not more 6 than one hundred thousand. 7 (d) Eight hundred One million forty thousand dollars in a 8 county having a population of more than one hundred thousand 9 but not more than two hundred thousand. 10 (e) One million three hundred thousand dollars in a county 11 having a population of more than two hundred thousand. 12 Sec. 140. Section 331.403, subsection 1, Code 2023, is 13 amended to read as follows: 14 1. Not later than December 1 of each year on forms and 15 pursuant to instructions prescribed by the department of 16 management, a county shall prepare an annual financial report 17 showing for each county fund the financial condition as of 18 June 30 and the results of operations for the year then ended. 19 Copies of the report shall be maintained as a public record at 20 the auditor’s office and shall be filed with the director of 21 the department of management and with the auditor of state by 22 December 1. A summary of the report, in a form prescribed by 23 the director, shall be published by each county not later than 24 December 1 of each year in one or more newspapers which meet 25 the requirements of section 618.14 . Beginning with the annual 26 financial report filed by December 1, 2025, each report shall 27 include a list of bonds, notes, or other obligations issued 28 by the county during the most recently completed fiscal year, 29 and the applicable lists for other fiscal years beginning on 30 or after July 1, 2024, for which obligations remain unpaid, 31 payable from any source, including the amount of the issuance, 32 the project or purpose of the issuance, whether the issuance 33 was approved at election, eligible to be subject to a petition 34 for an election, or was exempt from approval at election as 35 -67- HF 718.2086 (4) 90 md/jh 67/ 74

the result of statutory exclusions based on population of 1 the county or amount of the issuance, and identification of 2 issuances from the fiscal year or prior fiscal years related 3 to the same project or purpose. 4 Sec. 141. Section 331.441, subsection 2, paragraph b, 5 subparagraph (5), subparagraph divisions (a), (b), (c), (d), 6 and (e), Code 2023, are amended to read as follows: 7 (a) Six Seven hundred eighty thousand dollars in a county 8 having a population of twenty-five thousand or less. 9 (b) Seven Nine hundred fifty seventy-five thousand dollars 10 in a county having a population of more than twenty-five 11 thousand but not more than fifty thousand. 12 (c) Nine One million one hundred seventy thousand dollars in 13 a county having a population of more than fifty thousand but 14 not more than one hundred thousand. 15 (d) One million two five hundred sixty thousand dollars in 16 a county having a population of more than one hundred thousand 17 but not more than two hundred thousand. 18 (e) One million five nine hundred fifty thousand dollars in 19 a county having a population of more than two hundred thousand. 20 Sec. 142. Section 331.442, subsection 2, paragraph a, Code 21 2023, is amended to read as follows: 22 a. The board shall publish notice of the proposal to issue 23 the bonds, including a statement of the amount and purpose 24 of the bonds , and a statement of the estimated cost of the 25 project for which the bonds are to be issued , and an estimate 26 of the annual increase in property taxes as the result of 27 the bond issuance on a residential property with an actual 28 value of one hundred thousand dollars . The notice shall be 29 published as provided in section 331.305 with the minutes of 30 the meeting at which the board adopts a resolution to call a 31 county special election to vote upon the question of issuing 32 the bonds. The cost of the project, as published in the notice 33 pursuant to this paragraph, is an estimate and is not intended 34 to be binding on the board in later proceedings related to the 35 -68- HF 718.2086 (4) 90 md/jh 68/ 74

project. 1 Sec. 143. Section 331.442, subsection 5, paragraph a, 2 unnumbered paragraph 1, Code 2023, is amended to read as 3 follows: 4 Notwithstanding subsection 2 , a board, in lieu of calling 5 an election, may institute proceedings for the issuance of 6 bonds for a general county purpose by causing a notice of the 7 proposal to issue the bonds, including a statement of the 8 amount and purpose of the bonds, and the right to petition for 9 an election, to be published as provided in section 331.305 at 10 least ten days prior to the meeting at which it is proposed 11 to take action for the issuance of the bonds subject to the 12 following population-based limitations , adjusted and published 13 annually in January by the department of management by applying 14 the percentage change in the consumer price index for all 15 urban consumers for the most recent available twelve-month 16 period published in the federal register by the United States 17 department of labor, bureau of labor statistics : 18 Sec. 144. Section 331.442, subsection 5, paragraph a, 19 subparagraphs (1), (2), and (3), Code 2023, are amended to read 20 as follows: 21 (1) In counties having a population of twenty thousand or 22 less, in an amount of not more than one hundred thirty thousand 23 dollars. 24 (2) In counties having a population of over twenty thousand 25 and not over fifty thousand, in an amount of not more than two 26 hundred sixty thousand dollars. 27 (3) In counties having a population of over fifty thousand, 28 in an amount of not more than three hundred ninety thousand 29 dollars. 30 Sec. 145. Section 331.442, subsection 5, Code 2023, is 31 amended by adding the following new paragraph: 32 NEW PARAGRAPH . 0b. Each county’s population used to 33 determine the limitations of paragraph “a” shall be determined 34 by the greater of the county’s population during the most 35 -69- HF 718.2086 (4) 90 md/jh 69/ 74

recent federal decennial census or the most recent population 1 estimate produced by the United States census bureau. 2 Sec. 146. Section 331.443, subsection 2, Code 2023, is 3 amended to read as follows: 4 2. Before the board may institute proceedings for the 5 issuance of bonds for an essential county purpose, a notice 6 of the proposed action, including a statement of the amount 7 and purposes of the bonds, an estimate of the annual increase 8 in property taxes as the result of the bond issuance on a 9 residential property with an actual value of one hundred 10 thousand dollars, and the time and place of the meeting at 11 which the board proposes to take action for the issuance of the 12 bonds, shall be published as provided in section 331.305 . At 13 the meeting, the board shall receive oral or written objections 14 from any resident or property owner of the county. After 15 all objections have been received and considered, the board, 16 at that meeting or a date to which it is adjourned, may take 17 additional action for the issuance of the bonds or abandon the 18 proposal to issue the bonds. Any resident or property owner 19 of the county may appeal the decision of the board to take 20 additional action to the district court of the county, within 21 fifteen days after the additional action is taken, but the 22 additional action of the board is final and conclusive unless 23 the court finds that the board exceeded its authority. The 24 provisions of this subsection with respect to notice, hearing, 25 and appeal, are in lieu of any other law. 26 Sec. 147. Section 384.22, subsection 1, Code 2023, is 27 amended to read as follows: 28 1. Not later than December 1 of each year, a city shall 29 publish an annual financial report as provided in section 30 362.3 containing a summary for the preceding fiscal year of 31 all collections and receipts, all accounts due the city, 32 and all expenditures, the current public debt of the city, 33 and the legal debt limit of the city for the current fiscal 34 year. The annual financial report shall be prepared on forms 35 -70- HF 718.2086 (4) 90 md/jh 70/ 74

and pursuant to instructions prescribed by the auditor of 1 state. Beginning with the annual financial report published by 2 December 1, 2025, each report shall include a list of bonds, 3 notes, or other obligations issued by the city during the most 4 recently completed fiscal year, and the applicable lists for 5 other fiscal years beginning on or after July 1, 2024, for 6 which obligations remain unpaid, payable from any source, 7 including the amount of the issuance, the project or purpose of 8 the issuance, whether the issuance was approved at election, 9 eligible to be subject to a petition for an election, or was 10 exempt from approval at election as the result of statutory 11 exclusions based on population of the city or amount of the 12 issuance, and identification of issuances from the fiscal year 13 or prior fiscal years related to the same project or purpose. 14 Sec. 148. Section 384.24A, subsection 4, paragraph a, 15 subparagraphs (1), (2), and (3), Code 2023, are amended to read 16 as follows: 17 (1) Four Five hundred twenty thousand dollars in a city 18 having a population of five thousand or less. 19 (2) Seven Nine hundred ten thousand dollars in a city having 20 a population of more than five thousand but not more than 21 seventy-five thousand. 22 (3) One million three hundred thousand dollars in a city 23 having a population of more than seventy-five thousand. 24 Sec. 149. Section 384.25, subsection 2, Code 2023, is 25 amended to read as follows: 26 2. Before the council may institute proceedings for the 27 issuance of bonds for an essential corporate purpose, a notice 28 of the proposed action, including a statement of the amount 29 and purposes of the bonds, and an estimate of the annual 30 increase in property taxes as the result of the bond issuance 31 on a residential property with an actual value of one hundred 32 thousand dollars, and the time and place of the meeting at 33 which the council proposes to take action for the issuance of 34 the bonds, must be published as provided in section 362.3 . 35 -71- HF 718.2086 (4) 90 md/jh 71/ 74

At the meeting, the council shall receive oral or written 1 objections from any resident or property owner of the city. 2 After all objections have been received and considered, the 3 council may, at that meeting or any adjournment thereof, take 4 additional action for the issuance of the bonds or abandon the 5 proposal to issue the bonds. Any resident or property owner 6 of the city may appeal the decision of the council to take 7 additional action to the district court of the county in which 8 any part of the city is located, within fifteen days after the 9 additional action is taken, but the additional action of the 10 council is final and conclusive unless the court finds that 11 the council exceeded its authority. The provisions of this 12 subsection with respect to notice, hearing, and appeal, are in 13 lieu of the provisions contained in chapter 73A , or any other 14 law. 15 Sec. 150. Section 384.26, subsection 2, Code 2023, is 16 amended to read as follows: 17 2. a. The board shall publish notice of the proposal 18 to issue the bonds, including a statement of the amount and 19 purpose of the bonds, a statement of the estimated cost of the 20 project for which the bonds are to be issued, and an estimate 21 of the annual increase in property taxes as the result of 22 the bond issuance on a residential property with an actual 23 value of one hundred thousand dollars. The notice shall be 24 published as provided in section 362.3 with the minutes of 25 the meeting at which the council adopts a resolution to call 26 a special election to vote upon the question of issuing the 27 bonds. The cost of the project, as published in the notice 28 pursuant to this paragraph, is an estimate and is not intended 29 to be binding on the board in later proceedings related to the 30 project. 31 b. Before the council may institute proceedings for the 32 issuance of bonds for a general corporate purpose, it shall 33 call a special city election to vote upon the question of 34 issuing the bonds. At the election the proposition must be 35 -72- HF 718.2086 (4) 90 md/jh 72/ 74

submitted in the following form: 1 Shall the ............ (insert the name of the city) issue 2 its bonds in an amount not exceeding the amount of $ .... for 3 the purpose of .......... ? 4 Sec. 151. Section 384.26, subsection 5, paragraph a, 5 unnumbered paragraph 1, Code 2023, is amended to read as 6 follows: 7 Notwithstanding the provisions of subsection 2 , a council 8 may, in lieu of calling an election, institute proceedings 9 for the issuance of bonds for a general corporate purpose by 10 causing a notice of the proposal to issue the bonds, including 11 a statement of the amount and purpose of the bonds, together 12 with the maximum rate of interest which the bonds are to bear, 13 and the right to petition for an election, to be published at 14 least once in a newspaper of general circulation within the 15 city at least ten days prior to the meeting at which it is 16 proposed to take action for the issuance of the bonds subject 17 to the following population-based limitations , adjusted and 18 published annually in January by the department of management 19 by applying the percentage change in the consumer price 20 index for all urban consumers for the most recent available 21 twelve-month period published in the federal register by the 22 United States department of labor, bureau of labor statistics : 23 Sec. 152. Section 384.26, subsection 5, paragraph a, 24 subparagraphs (1), (2), and (3), Code 2023, are amended to read 25 as follows: 26 (1) In cities having a population of five thousand or less, 27 in an amount of not more than four five hundred twenty thousand 28 dollars. 29 (2) In cities having a population of more than five thousand 30 and not more than seventy-five thousand, in an amount of not 31 more than seven nine hundred ten thousand dollars. 32 (3) In cities having a population in excess of seventy-five 33 thousand, in an amount of not more than one million three 34 hundred thousand dollars. 35 -73- HF 718.2086 (4) 90 md/jh 73/ 74

Sec. 153. Section 384.26, subsection 5, Code 2023, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . 0b. Each city’s population used to determine 3 the limitations of paragraph “a” shall be determined by the 4 greater of the city’s population during the most recent 5 federal decennial census or the most recent population estimate 6 produced by the United States census bureau. 7 Sec. 154. EFFECTIVE DATE. This division of this Act takes 8 effect July 1, 2024. > 9 2. Title page, by striking lines 1 through 5 and inserting 10 < An Act relating to local government property taxes, financial 11 authority, operations, and budgets, modifying certain 12 transit funding, property tax credits and exemptions, and 13 appropriations, requiring certain information related to 14 property taxation to be provided to property owners and 15 taxpayers, modifying provisions relating to fees for driver’s 16 licenses and nonoperator’s identification cards, modifying 17 provisions relating to certain writing fees, modifying certain 18 bonding procedures, making penalties applicable, and including 19 effective date, applicability, and retroactive applicability 20 provisions. > 21 ______________________________ COMMITTEE ON WAYS AND MEANS DAN DAWSON, CHAIRPERSON -74- HF 718.2086 (4) 90 md/jh 74/ 74 #2.