House File 266 - Introduced
HOUSE FILE
BY PAULSEN
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to a limitation on certain county and city
2 property taxes in certain fiscal years and providing for the
3 Act's applicability.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1192YH 81
6 sc/sh/8
PAG LIN
1 1 Section 1. NEW SECTION. 331.422A LIMITATION ON TAXES
1 2 CERTIFIED == EQUALIZATION ORDERS.
1 3 1. Notwithstanding any provision in this part to the
1 4 contrary, if the equalization order issued by the department
1 5 of revenue to an assessing jurisdiction that is a county,
1 6 provides, in the aggregate for all classes of property, a
1 7 percentage increase in assessed values for the assessing
1 8 jurisdiction, the maximum amount of property tax dollars that
1 9 may be certified by the county in the fiscal year beginning
1 10 July 1 of the even=numbered year following issuance of the
1 11 equalization order shall not exceed the amount certified in
1 12 the previous fiscal year, unless the board adopts a resolution
1 13 pursuant to subsection 2.
1 14 2. Not less than thirty=five days before the certification
1 15 date of the budget for the fiscal year beginning July 1 of the
1 16 even=numbered year following issuance of an equalization order
1 17 described in subsection 1, the board may adopt a resolution
1 18 declaring that for such budget the board does not intend to
1 19 reduce its tax levy rates from the current fiscal year in
1 20 order to compensate for the increase in property valuations
1 21 due to the equalization orders issued by the department of
1 22 revenue. The board shall publish notice of a hearing on the
1 23 resolution in a newspaper of general circulation in the county
1 24 not less than four nor more than ten days before the hearing.
1 25 The notice shall contain a copy of the resolution. After the
1 26 public hearing, the board may abandon the declaration
1 27 contained in the resolution or the board may proceed with the
1 28 declaration contained in the resolution.
1 29 Sec. 2. NEW SECTION. 384.1A LIMITATION ON TAXES
1 30 CERTIFIED == EQUALIZATION ORDERS.
1 31 1. Notwithstanding any provision in this division to the
1 32 contrary, if the equalization order issued by the department
1 33 of revenue to an assessing jurisdiction that is a city,
1 34 provides, in the aggregate for all classes of property, a
1 35 percentage increase in assessed values for the assessing
2 1 jurisdiction, the maximum amount of property tax dollars that
2 2 may be certified by the city in the fiscal year beginning July
2 3 1 of the even=numbered year following issuance of the
2 4 equalization order shall not exceed the amount certified in
2 5 the previous fiscal year, unless the city council adopts a
2 6 resolution pursuant to subsection 3.
2 7 2. Notwithstanding any provision in this division to the
2 8 contrary, if the equalization order issued by the department
2 9 of revenue to an assessing jurisdiction that is a county,
2 10 provides, in the aggregate for all classes of property, a
2 11 percentage increase in assessed values for the assessing
2 12 jurisdiction, the maximum amount of property tax dollars that
2 13 may be certified by any city located in that county in the
2 14 fiscal year beginning July 1 of the even=numbered year
2 15 following issuance of the equalization order shall not exceed
2 16 the amount certified in the previous fiscal year, unless the
2 17 city council adopts a resolution pursuant to subsection 3.
2 18 3. Not less than thirty=five days before the certification
2 19 date of the budget for the fiscal year beginning July 1 of the
2 20 even=numbered year following issuance of an equalization order
2 21 described in subsection 1, the city council may adopt a
2 22 resolution declaring that for such budget the city council
2 23 does not intend to reduce its tax levy rates from the current
2 24 fiscal year in order to compensate for the increase in
2 25 property valuations due to the equalization orders issued by
2 26 the department of revenue. The city council shall publish
2 27 notice of a hearing on the resolution in a newspaper of
2 28 general circulation in the city not less than four nor more
2 29 than ten days before the hearing. The notice shall contain a
2 30 copy of the resolution. After the public hearing, the city
2 31 council may abandon the declaration contained in the
2 32 resolution or the city council may proceed with the
2 33 declaration contained in the resolution.
2 34 Sec. 3. APPLICABILITY DATE. This Act applies to budgets
2 35 certified for the fiscal year beginning July 1, 2006, and to
3 1 subsequent fiscal years beginning July 1 of the even=numbered
3 2 year.
3 3 EXPLANATION
3 4 This bill requires that if an equalization order issued to
3 5 an assessing jurisdiction that is a city is, in the aggregate,
3 6 a percentage increase in assessed values, then property taxes
3 7 certified by the city for the fiscal year beginning July 1 of
3 8 the even=numbered year following issuance of the equalization
3 9 order are limited to the amount certified in the previous
3 10 year, unless the city adopts a resolution declaring that it
3 11 does not intend to reduce its levy rates to compensate for the
3 12 increase in valuation due to the equalization orders. If the
3 13 assessing jurisdiction is a county and the equalization order,
3 14 in the aggregate, is a percentage increase in assessed values,
3 15 then property taxes certified by the county and each city in
3 16 the county for the fiscal year beginning July 1 of the even=
3 17 numbered year following issuance of the equalization order are
3 18 limited to the amount certified in the previous year, unless
3 19 the county or the city, as applicable, adopts a resolution
3 20 declaring that it does not intend to reduce its levy rates to
3 21 compensate for the increase in valuation due to the
3 22 equalization orders.
3 23 The bill provides that the board or city council adopting
3 24 such a resolution shall hold a public hearing on the
3 25 resolution. After the public hearing, the board or council
3 26 may abandon the resolution or proceed with the resolution.
3 27 The bill applies to the fiscal year beginning July 1, 2006,
3 28 and to subsequent fiscal years beginning July 1 of the even=
3 29 numbered year.
3 30 LSB 1192YH 81
3 31 sc:rj/sh/8.1