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