House File 2483 - Introduced HOUSE FILE BY STRUYK, WINDSCHITL, WATTS, and FORRISTALL 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 property taxes in 2 certain fiscal years and providing for the Act's 3 applicability. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5629YH 82 6 sc/rj/8 PAG LIN 1 1 Section 1. Section 24.9, Code 2007, is amended to read as 1 2 follows: 1 3 24.9 FILING ESTIMATES == NOTICE OF HEARING == AMENDMENTS. 1 4 1. Each municipality shall file with the secretary or 1 5 clerk thereof the estimates required to be made in sections 1 6 24.3 to 24.8, at least twenty days before the date fixed by 1 7 law for certifying the same to the levying board and shall 1 8 forthwith fix a date for a hearing thereon, and shall publish 1 9 such estimates and any annual levies previously authorized as 1 10 provided in section 76.2, with a notice of the time when and 1 11 the place where such hearing shall be held not less than ten 1 12 nor more than twenty days before the hearing. Provided that 1 13 in municipalities of less than two hundred population such 1 14 estimates and the notice of hearing thereon shall be posted in 1 15 three public places in the district in lieu of publication. 1 16 For any other municipality such publication shall be in a 1 17 newspaper published in the municipality, if any, if not, then 1 18 in a newspaper of general circulation the municipality. The 1 19 department of management shall prescribe the form for public 1 20 hearing notices for use by municipalities. 1 21For any other municipality such publication shall be in a 1 22 newspaper published therein, if any, if not, then in a 1 23 newspaper of general circulation therein. 1 24 The department of management shall prescribe the form for 1 25 public hearing notices for use by municipalities.1 26 2. Notwithstanding any provision to the contrary, if the 1 27 equalization order issued by the department of revenue to an 1 28 assessing jurisdiction that is a county provides, in the 1 29 aggregate for all classes of property, a percentage increase 1 30 in assessed values for the assessing jurisdiction, the maximum 1 31 amount of property tax dollars that may be certified by the 1 32 certifying board of any municipality located in that county in 1 33 the fiscal year beginning July 1 of the even=numbered year 1 34 following issuance of the equalization order shall not exceed 1 35 the amount certified in the previous fiscal year, unless the 2 1 certifying board of the municipality adopts a resolution 2 2 declaring that for such budget the certifying board does not 2 3 intend to reduce its tax levy rates from the current fiscal 2 4 year in order to compensate for the increase in property 2 5 valuations due to the equalization orders issued by the 2 6 department of revenue. The resolution shall be filed in the 2 7 same manner and at the same time as the estimates in 2 8 subsection 1. The resolution shall be published along with 2 9 the estimates and the notice of public hearing required in 2 10 subsection 1. After the public hearing, the certifying board 2 11 may abandon the declaration contained in the resolution or the 2 12 certifying board may proceed with the declaration contained in 2 13 the resolution. 2 14 3. Budget estimates adopted and certified in accordance 2 15 with this chapter may be amended and increased as the need 2 16 arises to permit appropriation and expenditure during the 2 17 fiscal year covered by the budget of unexpended cash balances 2 18 on hand at the close of the preceding fiscal year and which 2 19 cash balances had not been estimated and appropriated for 2 20 expenditure during the fiscal year of the budget sought to be 2 21 amended, and also to permit appropriation and expenditure 2 22 during the fiscal year covered by the budget of amounts of 2 23 cash anticipated to be available during the year from sources 2 24 other than taxation and which had not been estimated and 2 25 appropriated for expenditure during the fiscal year of the 2 26 budget sought to be amended. Such amendments to budget 2 27 estimates may be considered and adopted at any time during the 2 28 fiscal year covered by the budget sought to be amended, by 2 29 filing the amendments and upon publishing them and giving 2 30 notice of the public hearing in the manner required in this 2 31 section. Within ten days of the decision or order of the 2 32 certifying or levying board, the proposed amendment of the 2 33 budget is subject to protest, hearing on the protest, appeal 2 34 to the state appeal board and review by that body, all in 2 35 accordance with sections 24.27 to 24.32, so far as applicable. 3 1 A local budget shall be amended by May 31 of the current 3 2 fiscal year to allow time for a protest hearing to be held and 3 3 a decision rendered before June 30. An amendment of a budget 3 4 after May 31 which is properly appealed but without adequate 3 5 time for hearing and decision before June 30 is void. 3 6 Amendments to budget estimates accepted or issued under this 3 7 section are not within section 24.14. 3 8 Sec. 2. NEW SECTION. 331.422A LIMITATION ON TAXES 3 9 CERTIFIED == EQUALIZATION ORDERS. 3 10 1. Notwithstanding any provision in this part to the 3 11 contrary, if the equalization order issued by the department 3 12 of revenue to an assessing jurisdiction that is a county 3 13 provides, in the aggregate for all classes of property, a 3 14 percentage increase in assessed values for the assessing 3 15 jurisdiction, the maximum amount of property tax dollars that 3 16 may be certified by the county in the fiscal year beginning 3 17 July 1 of the even=numbered year following issuance of the 3 18 equalization order shall not exceed the amount certified in 3 19 the previous fiscal year, unless the board adopts a resolution 3 20 pursuant to subsection 2. 3 21 2. Not less than thirty=five days before the certification 3 22 date of the budget for the fiscal year beginning July 1 of the 3 23 even=numbered year following issuance of an equalization order 3 24 described in subsection 1, the board may adopt a resolution 3 25 declaring that for such budget the board does not intend to 3 26 reduce its tax levy rates from the current fiscal year in 3 27 order to compensate for the increase in property valuations 3 28 due to the equalization orders issued by the department of 3 29 revenue. The board shall publish notice of a hearing on the 3 30 resolution in a newspaper of general circulation in the county 3 31 not less than four nor more than ten days before the hearing. 3 32 The notice shall contain a copy of the resolution. After the 3 33 public hearing, the board may abandon the declaration 3 34 contained in the resolution or the board may proceed with the 3 35 declaration contained in the resolution. 4 1 Sec. 3. NEW SECTION. 384.1A LIMITATION ON TAXES 4 2 CERTIFIED == EQUALIZATION ORDERS. 4 3 1. Notwithstanding any provision in this division to the 4 4 contrary, if the equalization order issued by the department 4 5 of revenue to an assessing jurisdiction that is a city 4 6 provides, in the aggregate for all classes of property, a 4 7 percentage increase in assessed values for the assessing 4 8 jurisdiction, the maximum amount of property tax dollars that 4 9 may be certified by the city in the fiscal year beginning July 4 10 1 of the even=numbered year following issuance of the 4 11 equalization order shall not exceed the amount certified in 4 12 the previous fiscal year, unless the city council adopts a 4 13 resolution pursuant to subsection 3. 4 14 2. Notwithstanding any provision in this division to the 4 15 contrary, if the equalization order issued by the department 4 16 of revenue to an assessing jurisdiction that is a county 4 17 provides, in the aggregate for all classes of property, a 4 18 percentage increase in assessed values for the assessing 4 19 jurisdiction, the maximum amount of property tax dollars that 4 20 may be certified by any city located in that county in the 4 21 fiscal year beginning July 1 of the even=numbered year 4 22 following issuance of the equalization order shall not exceed 4 23 the amount certified in the previous fiscal year, unless the 4 24 city council adopts a resolution pursuant to subsection 3. 4 25 3. Not less than thirty=five days before the certification 4 26 date of the budget for the fiscal year beginning July 1 of the 4 27 even=numbered year following issuance of an equalization order 4 28 described in subsection 1, the city council may adopt a 4 29 resolution declaring that for such budget the city council 4 30 does not intend to reduce its tax levy rates from the current 4 31 fiscal year in order to compensate for the increase in 4 32 property valuations due to the equalization orders issued by 4 33 the department of revenue. The city council shall publish 4 34 notice of a hearing on the resolution in a newspaper of 4 35 general circulation in the city not less than four nor more 5 1 than ten days before the hearing. The notice shall contain a 5 2 copy of the resolution. After the public hearing, the city 5 3 council may abandon the declaration contained in the 5 4 resolution or the city council may proceed with the 5 5 declaration contained in the resolution. 5 6 Sec. 4. Section 359.49, Code Supplement 2007, is amended 5 7 by adding the following news subsection: 5 8 NEW SUBSECTION. 2A. a. Notwithstanding any provision to 5 9 the contrary, if the equalization order issued by the 5 10 department of revenue to an assessing jurisdiction that is a 5 11 county provides, in the aggregate for all classes of property, 5 12 a percentage increase in assessed values for the assessing 5 13 jurisdiction, the maximum amount of property tax dollars that 5 14 may be certified by the township board of trustees of any 5 15 township located in that county in the fiscal year beginning 5 16 July 1 of the even=numbered year following issuance of the 5 17 equalization order shall not exceed the amount certified in 5 18 the previous fiscal year, unless the township board of 5 19 trustees adopts a resolution pursuant to paragraph "b". 5 20 b. Not less than twenty days before the date set for the 5 21 regular meeting of the board of trustees at which objections 5 22 and arguments on the budget will be heard, the board may adopt 5 23 a resolution declaring that for such budget the board does not 5 24 intend to reduce its tax levy rates from the current fiscal 5 25 year in order to compensate for the increase in property 5 26 valuations due to the equalization orders issued by the 5 27 department of revenue. The resolution shall be forwarded to 5 28 the county auditor for posting with the proposed budget 5 29 pursuant to subsection 4. After the meeting, the board may 5 30 abandon the declaration contained in the resolution or the 5 31 board may proceed with the declaration contained in the 5 32 resolution. 5 33 Sec. 5. APPLICABILITY DATE. This Act applies to budgets 5 34 certified for the fiscal year beginning July 1, 2010, and to 5 35 subsequent fiscal years beginning July 1 of the even=numbered 6 1 year. 6 2 EXPLANATION 6 3 This bill imposes a limitation on property taxes for 6 4 certain counties and cities and for certain other 6 5 tax=certifying entities. 6 6 The bill requires that if an equalization order issued to 6 7 an assessing jurisdiction that is a city is, in the aggregate, 6 8 a percentage increase in assessed values, then property taxes 6 9 certified by the city for the fiscal year beginning July 1 of 6 10 the even=numbered year following issuance of the equalization 6 11 order are limited to the amount certified in the previous 6 12 year, unless the city adopts a resolution declaring that it 6 13 does not intend to reduce its levy rates to compensate for the 6 14 increase in valuation due to the equalization orders. If the 6 15 assessing jurisdiction is a county and the equalization order, 6 16 in the aggregate, is a percentage increase in assessed values, 6 17 then property taxes certified by the county and each city in 6 18 the county for the fiscal year beginning July 1 of the even= 6 19 numbered year following issuance of the equalization order are 6 20 limited to the amount certified in the previous year, unless 6 21 the county or the city, as applicable, adopts a resolution 6 22 declaring that it does not intend to reduce its levy rates to 6 23 compensate for the increase in valuation due to the 6 24 equalization orders. The bill provides that the board or city 6 25 council adopting such a resolution shall hold a public hearing 6 26 on the resolution. After the public hearing, the board or 6 27 council may abandon the resolution or proceed with the 6 28 resolution. 6 29 The bill provides that all other tax certifying boards 6 30 shall comply with this requirement, except that they are not 6 31 required to hold an additional public hearing. Instead, they 6 32 are required to publish notice of adoption of the resolution 6 33 along with notice of the public hearing that is currently 6 34 required for these budgets. Townships, however, are not 6 35 required to hold a public hearing on their budgets, so the 7 1 bill provides that the resolution shall be posted along with 7 2 the proposed budget before the regular meeting on the proposed 7 3 budget. 7 4 The bill applies to the fiscal year beginning July 1, 2010, 7 5 and to subsequent fiscal years beginning July 1 of the even= 7 6 numbered year. 7 7 LSB 5629YH 82 7 8 sc/rj/8