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 21    For 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