H.F. 2441 Section 1. Section 331.424, subsection 1, paragraph 1 a, subparagraph (5), Code 2011, is amended by striking the 2 subparagraph. 3 Sec. 2. Section 331.430, Code 2011, is amended by adding the 4 following new subsection: 5 NEW SUBSECTION . 6. The taxes realized from the tax levy 6 imposed under section 346.27, subsection 22, for a joint 7 county-city building shall be deposited into a separate account 8 in the county’s debt service fund for the payment of the 9 annual rent and shall be disbursed pursuant to section 346.27, 10 subsection 22. 11 Sec. 3. Section 346.27, subsection 22, Code 2011, is amended 12 to read as follows: 13 22. When an incorporating unit enters into a lease with 14 the authority, the governing body of the incorporating unit 15 shall provide by ordinance or resolution for the levy and 16 collection of a direct annual tax sufficient to pay the annual 17 rent payable under the lease as and when it becomes due and 18 payable. The tax shall be levied and collected in like manner 19 with the other taxes of the incorporating unit and shall be in 20 addition to all other taxes authorized to be levied by that 21 incorporating unit. This tax shall not be included within and 22 shall be in addition to any statutory limitation of rate or 23 amount for that incorporating unit. The fund taxes realized 24 from the tax levy shall be set aside deposited into an account 25 in the debt service fund of the incorporating unit for the 26 payment of the annual rent and shall not be disbursed for any 27 other purpose until the annual rental has been paid in full. 28 Sec. 4. Section 384.4, Code 2011, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 4. The taxes realized from the tax levy 31 imposed under section 346.27, subsection 22, for a joint 32 county-city building shall be deposited into a separate 33 account in the city’s debt service fund for the payment of the 34 annual rent and shall be disbursed pursuant to section 346.27, 35 -1- LSB 5480HV (1) 84 md/sc 1/ 4

H.F. 2441 subsection 22. 1 Sec. 5. Section 384.12, subsection 15, Code 2011, is amended 2 by striking the subsection. 3 Sec. 6. Section 403.19, subsection 2, Code Supplement 2011, 4 is amended to read as follows: 5 2. That portion of the taxes each year in excess of such 6 amount shall be allocated to and when collected be paid into 7 a special fund of the municipality to pay the principal of 8 and interest on loans, moneys advanced to, or indebtedness, 9 whether funded, refunded, assumed, or otherwise, including 10 bonds issued under the authority of section 403.9, subsection 11 1 , incurred by the municipality to finance or refinance, in 12 whole or in part, an urban renewal project within the area, 13 and to provide assistance for low and moderate income family 14 housing as provided in section 403.22 , except that . However, 15 taxes for the regular and voter-approved physical plant and 16 equipment levy of a school district imposed pursuant to section 17 298.2 , and taxes for the payment of bonds and interest of 18 each taxing district must , and taxes imposed under section 19 346.27, subsection 22, related to joint county-city buildings 20 shall be collected against all taxable property within the 21 taxing district without limitation by the provisions of this 22 subsection . However, all or a portion of the taxes for the 23 physical plant and equipment levy shall be paid by the school 24 district to the municipality if the auditor certifies to the 25 school district by July 1 the amount of such levy that is 26 necessary to pay the principal and interest on bonds issued 27 by the municipality to finance an urban renewal project, 28 which bonds were issued before July 1, 2001. Indebtedness 29 incurred to refund bonds issued prior to July 1, 2001, shall 30 not be included in the certification. Such school district 31 shall pay over the amount certified by November 1 and May 32 1 of the fiscal year following certification to the school 33 district. Unless and until the total assessed valuation of 34 the taxable property in an urban renewal area exceeds the 35 -2- LSB 5480HV (1) 84 md/sc 2/ 4

H.F. 2441 total assessed value of the taxable property in such area as 1 shown by the last equalized assessment roll referred to in 2 subsection 1 , all of the taxes levied and collected upon the 3 taxable property in the urban renewal area shall be paid into 4 the funds for the respective taxing districts as taxes by 5 or for the taxing districts in the same manner as all other 6 property taxes. When such loans, advances, indebtedness, and 7 bonds, if any, and interest thereon, have been paid, all moneys 8 thereafter received from taxes upon the taxable property in 9 such urban renewal area shall be paid into the funds for the 10 respective taxing districts in the same manner as taxes on all 11 other property. In those instances where a school district 12 has entered into an agreement pursuant to section 279.64 for 13 sharing of school district taxes levied and collected from 14 valuation described in this subsection and released to the 15 school district, the school district shall transfer the taxes 16 as provided in the agreement. 17 Sec. 7. APPLICABILITY. This Act applies to property taxes 18 due and payable in fiscal years beginning on or after July 1, 19 2013. 20 EXPLANATION 21 Current Code section 346.27 allows a county along with 22 its county seat to establish an authority for the purpose of 23 acquiring, constructing, demolishing, improving, enlarging, 24 equipping, furnishing, repairing, maintaining, and operating 25 a public building for the joint use of the county and city or 26 any school district which is within or is a part of the county 27 or city. The authority then leases the building to the county 28 and city. Current Code section 346.27(22) authorizes each such 29 county and city to levy and collect property tax sufficient 30 to pay the annual rent payable under the lease as and when it 31 becomes due and payable. 32 This bill specifies that taxes realized from the tax levy 33 imposed by a county or city under Code section 346.27(22) for a 34 joint county-city building shall be deposited into a separate 35 -3- LSB 5480HV (1) 84 md/sc 3/ 4

H.F. 2441 account in the applicable county or city debt service fund for 1 the payment of the annual rent. 2 The bill also removes such tax levies from inclusion within 3 the county supplemental levy under Code section 331.424 and the 4 city additional tax under Code section 384.12. 5 The bill excludes the property taxes levied and collected 6 for the purpose of Code section 346.27(22) from a division of 7 revenue (tax increment financing) under Code section 403.19. 8 The bill applies to property taxes due and payable in fiscal 9 years beginning on or after July 1, 2013. 10 -4- LSB 5480HV (1) 84 md/sc 4/ 4