House File 116HOUSE FILE BY STRUYK 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 1551YH 82 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, 2008, 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, 2008, 3 28 and to subsequent fiscal years beginning July 1 of the even= 3 29 numbered year. 3 30 LSB 1551YH 82 3 31 sc:rj/sh/8