House
File
2475
-
Introduced
HOUSE
FILE
2475
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
676)
A
BILL
FOR
An
Act
relating
to
taxation
and
local
government
budgets
1
by
providing
for
an
increase
in
the
amount
of
the
earned
2
income
tax
credit,
establishing
and
modifying
property
3
assessment
limitations,
providing
for
certain
property
tax
4
replacement
payments,
modifying
the
assessment
and
taxation
5
of
telecommunications
company
property,
establishing
budget
6
limitations
for
counties
and
cities,
modifying
certain
7
reporting
requirements,
establishing
a
property
tax
credit
8
for
certain
commercial,
industrial,
and
railway
property,
9
establishing
a
multiresidential
property
classification,
10
providing
penalties,
making
appropriations,
and
including
11
effective
date,
retroactive
applicability,
and
other
12
applicability
provisions.
13
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
14
TLSB
6140HV
(3)
84
md/sc
H.F.
2475
DIVISION
I
1
EARNED
INCOME
TAX
CREDIT
2
Section
1.
Section
422.12B,
subsection
1,
Code
2011,
is
3
amended
to
read
as
follows:
4
1.
The
taxes
imposed
under
this
division
less
the
credits
5
allowed
under
section
422.12
shall
be
reduced
by
an
earned
6
income
credit
equal
to
seven
ten
percent
of
the
federal
earned
7
income
credit
provided
in
section
32
of
the
Internal
Revenue
8
Code.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
9
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
division
of
this
10
Act
applies
retroactively
to
January
1,
2012,
for
tax
years
11
beginning
on
or
after
that
date.
12
DIVISION
II
13
PROPERTY
TAX
ASSESSMENT
LIMITATIONS
——
PROPERTY
TAX
REPLACEMENT
14
Sec.
3.
Section
257.3,
subsection
1,
Code
2011,
is
amended
15
by
adding
the
following
new
paragraph:
16
NEW
PARAGRAPH
.
d.
The
amount
paid
to
each
school
district
17
for
the
commercial
and
industrial
property
tax
replacement
18
claim
under
section
441.21A
shall
be
regarded
as
property
tax.
19
The
portion
of
the
payment
which
is
foundation
property
tax
20
shall
be
determined
by
applying
the
foundation
property
tax
21
rate
to
the
amount
computed
under
section
441.21A,
subsection
22
4,
paragraph
“a”
,
and
such
amount
shall
be
prorated
pursuant
to
23
section
441.21A,
subsection
2,
if
applicable.
24
Sec.
4.
Section
331.512,
Code
2011,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
13A.
Carry
out
duties
relating
to
the
27
calculation
and
payment
of
commercial
and
industrial
property
28
tax
replacement
claims
under
section
441.21A.
29
Sec.
5.
Section
331.559,
Code
2011,
is
amended
by
adding
the
30
following
new
subsection:
31
NEW
SUBSECTION
.
25A.
Carry
out
duties
relating
to
the
32
calculation
and
payment
of
commercial
and
industrial
property
33
tax
replacement
claims
under
section
441.21A.
34
Sec.
6.
Section
441.21,
subsection
4,
Code
Supplement
2011,
35
-1-
LSB
6140HV
(3)
84
md/sc
1/
58
H.F.
2475
is
amended
to
read
as
follows:
1
4.
For
valuations
established
as
of
January
1,
1979,
2
the
percentage
of
actual
value
at
which
agricultural
and
3
residential
property
shall
be
assessed
shall
be
the
quotient
4
of
the
dividend
and
divisor
as
defined
in
this
section
.
The
5
dividend
for
each
class
of
property
shall
be
the
dividend
6
as
determined
for
each
class
of
property
for
valuations
7
established
as
of
January
1,
1978,
adjusted
by
the
product
8
obtained
by
multiplying
the
percentage
determined
for
that
9
year
by
the
amount
of
any
additions
or
deletions
to
actual
10
value,
excluding
those
resulting
from
the
revaluation
of
11
existing
properties,
as
reported
by
the
assessors
on
the
12
abstracts
of
assessment
for
1978,
plus
six
percent
of
the
13
amount
so
determined.
However,
if
the
difference
between
the
14
dividend
so
determined
for
either
class
of
property
and
the
15
dividend
for
that
class
of
property
for
valuations
established
16
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
17
multiplying
the
percentage
determined
for
that
year
by
the
18
amount
of
any
additions
or
deletions
to
actual
value,
excluding
19
those
resulting
from
the
revaluation
of
existing
properties,
20
as
reported
by
the
assessors
on
the
abstracts
of
assessment
21
for
1978,
is
less
than
six
percent,
the
1979
dividend
for
the
22
other
class
of
property
shall
be
the
dividend
as
determined
for
23
that
class
of
property
for
valuations
established
as
of
January
24
1,
1978,
adjusted
by
the
product
obtained
by
multiplying
25
the
percentage
determined
for
that
year
by
the
amount
of
26
any
additions
or
deletions
to
actual
value,
excluding
those
27
resulting
from
the
revaluation
of
existing
properties,
as
28
reported
by
the
assessors
on
the
abstracts
of
assessment
for
29
1978,
plus
a
percentage
of
the
amount
so
determined
which
is
30
equal
to
the
percentage
by
which
the
dividend
as
determined
31
for
the
other
class
of
property
for
valuations
established
32
as
of
January
1,
1978,
adjusted
by
the
product
obtained
by
33
multiplying
the
percentage
determined
for
that
year
by
the
34
amount
of
any
additions
or
deletions
to
actual
value,
excluding
35
-2-
LSB
6140HV
(3)
84
md/sc
2/
58
H.F.
2475
those
resulting
from
the
revaluation
of
existing
properties,
1
as
reported
by
the
assessors
on
the
abstracts
of
assessment
2
for
1978,
is
increased
in
arriving
at
the
1979
dividend
for
3
the
other
class
of
property.
The
divisor
for
each
class
of
4
property
shall
be
the
total
actual
value
of
all
such
property
5
in
the
state
in
the
preceding
year,
as
reported
by
the
6
assessors
on
the
abstracts
of
assessment
submitted
for
1978,
7
plus
the
amount
of
value
added
to
said
total
actual
value
by
8
the
revaluation
of
existing
properties
in
1979
as
equalized
9
by
the
director
of
revenue
pursuant
to
section
441.49
.
The
10
director
shall
utilize
information
reported
on
abstracts
of
11
assessment
submitted
pursuant
to
section
441.45
in
determining
12
such
percentage.
For
valuations
established
as
of
January
1,
13
1980,
and
each
assessment
year
thereafter
beginning
before
14
January
1,
2013
,
the
percentage
of
actual
value
as
equalized
15
by
the
director
of
revenue
as
provided
in
section
441.49
at
16
which
agricultural
and
residential
property
shall
be
assessed
17
shall
be
calculated
in
accordance
with
the
methods
provided
18
herein
including
the
limitation
of
increases
in
agricultural
19
and
residential
assessed
values
to
the
percentage
increase
of
20
the
other
class
of
property
if
the
other
class
increases
less
21
than
the
allowable
limit
adjusted
to
include
the
applicable
22
and
current
values
as
equalized
by
the
director
of
revenue,
23
except
that
any
references
to
six
percent
in
this
subsection
24
shall
be
four
percent.
For
valuations
established
as
of
25
January
1,
2013,
and
each
assessment
year
thereafter,
the
26
percentage
of
actual
value
as
equalized
by
the
director
of
27
revenue
as
provided
in
section
441.49
at
which
agricultural
28
and
residential
property
shall
be
assessed
shall
be
calculated
29
in
accordance
with
the
methods
provided
herein
including
30
the
limitation
of
increases
in
agricultural
and
residential
31
assessed
values
to
the
percentage
increase
of
the
other
32
class
of
property
if
the
other
class
increases
less
than
the
33
allowable
limit
adjusted
to
include
the
applicable
and
current
34
values
as
equalized
by
the
director
of
revenue,
except
that
any
35
-3-
LSB
6140HV
(3)
84
md/sc
3/
58
H.F.
2475
references
to
six
percent
in
this
subsection
shall
be
three
1
percent.
2
Sec.
7.
Section
441.21,
subsection
5,
Code
Supplement
2011,
3
is
amended
to
read
as
follows:
4
5.
a.
For
valuations
established
as
of
January
1,
1979,
5
commercial
property
and
industrial
property,
excluding
6
properties
referred
to
in
section
427A.1,
subsection
8
,
shall
7
be
assessed
as
a
percentage
of
the
actual
value
of
each
class
8
of
property.
The
percentage
shall
be
determined
for
each
9
class
of
property
by
the
director
of
revenue
for
the
state
in
10
accordance
with
the
provisions
of
this
section
.
For
valuations
11
established
as
of
January
1,
1979,
the
percentage
shall
be
12
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
13
section
.
The
dividend
for
each
class
of
property
shall
be
the
14
total
actual
valuation
for
each
class
of
property
established
15
for
1978,
plus
six
percent
of
the
amount
so
determined.
The
16
divisor
for
each
class
of
property
shall
be
the
valuation
17
for
each
class
of
property
established
for
1978,
as
reported
18
by
the
assessors
on
the
abstracts
of
assessment
for
1978,
19
plus
the
amount
of
value
added
to
the
total
actual
value
by
20
the
revaluation
of
existing
properties
in
1979
as
equalized
21
by
the
director
of
revenue
pursuant
to
section
441.49
.
For
22
valuations
established
as
of
January
1,
1979,
property
valued
23
by
the
department
of
revenue
pursuant
to
chapters
428
,
433
,
24
437
,
and
438
shall
be
considered
as
one
class
of
property
and
25
shall
be
assessed
as
a
percentage
of
its
actual
value.
The
26
percentage
shall
be
determined
by
the
director
of
revenue
in
27
accordance
with
the
provisions
of
this
section
.
For
valuations
28
established
as
of
January
1,
1979,
the
percentage
shall
be
29
the
quotient
of
the
dividend
and
divisor
as
defined
in
this
30
section
.
The
dividend
shall
be
the
total
actual
valuation
31
established
for
1978
by
the
department
of
revenue,
plus
ten
32
percent
of
the
amount
so
determined.
The
divisor
for
property
33
valued
by
the
department
of
revenue
pursuant
to
chapters
428
,
34
433
,
437
,
and
438
shall
be
the
valuation
established
for
1978,
35
-4-
LSB
6140HV
(3)
84
md/sc
4/
58
H.F.
2475
plus
the
amount
of
value
added
to
the
total
actual
value
by
1
the
revaluation
of
the
property
by
the
department
of
revenue
2
as
of
January
1,
1979.
For
valuations
established
as
of
3
January
1,
1980,
commercial
property
and
industrial
property,
4
excluding
properties
referred
to
in
section
427A.1,
subsection
5
8
,
shall
be
assessed
at
a
percentage
of
the
actual
value
of
6
each
class
of
property.
The
percentage
shall
be
determined
7
for
each
class
of
property
by
the
director
of
revenue
for
the
8
state
in
accordance
with
the
provisions
of
this
section
.
For
9
valuations
established
as
of
January
1,
1980,
the
percentage
10
shall
be
the
quotient
of
the
dividend
and
divisor
as
defined
in
11
this
section
.
The
dividend
for
each
class
of
property
shall
12
be
the
dividend
as
determined
for
each
class
of
property
for
13
valuations
established
as
of
January
1,
1979,
adjusted
by
the
14
product
obtained
by
multiplying
the
percentage
determined
15
for
that
year
by
the
amount
of
any
additions
or
deletions
to
16
actual
value,
excluding
those
resulting
from
the
revaluation
17
of
existing
properties,
as
reported
by
the
assessors
on
the
18
abstracts
of
assessment
for
1979,
plus
four
percent
of
the
19
amount
so
determined.
The
divisor
for
each
class
of
property
20
shall
be
the
total
actual
value
of
all
such
property
in
1979,
21
as
equalized
by
the
director
of
revenue
pursuant
to
section
22
441.49
,
plus
the
amount
of
value
added
to
the
total
actual
23
value
by
the
revaluation
of
existing
properties
in
1980.
The
24
director
shall
utilize
information
reported
on
the
abstracts
of
25
assessment
submitted
pursuant
to
section
441.45
in
determining
26
such
percentage.
For
valuations
established
as
of
January
1,
27
1980,
property
valued
by
the
department
of
revenue
pursuant
28
to
chapters
428
,
433
,
437
,
and
438
shall
be
assessed
at
a
29
percentage
of
its
actual
value.
The
percentage
shall
be
30
determined
by
the
director
of
revenue
in
accordance
with
the
31
provisions
of
this
section
.
For
valuations
established
as
of
32
January
1,
1980,
the
percentage
shall
be
the
quotient
of
the
33
dividend
and
divisor
as
defined
in
this
section
.
The
dividend
34
shall
be
the
total
actual
valuation
established
for
1979
by
35
-5-
LSB
6140HV
(3)
84
md/sc
5/
58
H.F.
2475
the
department
of
revenue,
plus
eight
percent
of
the
amount
so
1
determined.
The
divisor
for
property
valued
by
the
department
2
of
revenue
pursuant
to
chapters
428
,
433
,
437
,
and
438
shall
3
be
the
valuation
established
for
1979,
plus
the
amount
of
4
value
added
to
the
total
actual
value
by
the
revaluation
of
5
the
property
by
the
department
of
revenue
as
of
January
1,
6
1980.
For
valuations
established
as
of
January
1,
1981,
7
and
each
year
thereafter,
the
percentage
of
actual
value
as
8
equalized
by
the
director
of
revenue
as
provided
in
section
9
441.49
at
which
commercial
property
and
industrial
property,
10
excluding
properties
referred
to
in
section
427A.1,
subsection
11
8
,
shall
be
assessed
shall
be
calculated
in
accordance
with
12
the
methods
provided
herein,
except
that
any
references
to
13
six
percent
in
this
subsection
shall
be
four
percent.
For
14
valuations
established
as
of
January
1,
1981,
and
each
year
15
thereafter,
the
percentage
of
actual
value
at
which
property
16
valued
by
the
department
of
revenue
pursuant
to
chapters
17
428
,
433
,
437
,
and
438
shall
be
assessed
shall
be
calculated
18
in
accordance
with
the
methods
provided
herein,
except
that
19
any
references
to
ten
percent
in
this
subsection
shall
be
20
eight
percent.
For
assessment
years
beginning
on
or
after
21
January
1,
2013,
but
before
January
1,
2019,
the
percentage
22
of
actual
value
at
which
property
valued
by
the
department
of
23
revenue
pursuant
to
chapters
428,
433,
437,
and
438
shall
be
24
assessed
shall
be
calculated
using
property
valuations
for
the
25
applicable
assessment
years
that
include
the
total
value
of
26
property
exempt
from
taxation
under
section
433.4,
subsection
27
2,
paragraph
“b”
,
if
enacted
in
division
III
of
this
Act,
28
notwithstanding
section
433.4,
subsection
2,
paragraph
“c”
,
if
29
enacted
in
division
III
of
this
Act.
Beginning
with
valuations
30
established
as
of
January
1,
1979,
and
each
assessment
year
31
thereafter
beginning
before
January
1,
2013
,
property
valued
by
32
the
department
of
revenue
pursuant
to
chapter
434
shall
also
be
33
assessed
at
a
percentage
of
its
actual
value
which
percentage
34
shall
be
equal
to
the
percentage
determined
by
the
director
35
-6-
LSB
6140HV
(3)
84
md/sc
6/
58
H.F.
2475
of
revenue
for
commercial
property,
industrial
property,
or
1
property
valued
by
the
department
of
revenue
pursuant
to
2
chapters
428
,
433
,
437
,
and
438
,
whichever
is
lowest.
For
3
valuations
established
on
or
after
January
1,
2013,
property
4
valued
by
the
department
of
revenue
pursuant
to
chapter
434
5
shall
be
assessed
at
a
percentage
of
its
actual
value
equal
to
6
the
percentage
of
actual
value
at
which
property
assessed
as
7
commercial
property
is
assessed
for
the
same
assessment
year
8
under
paragraph
“b”
.
9
b.
For
valuations
established
on
or
after
January
1,
2013,
10
commercial
property,
excluding
properties
referred
to
in
11
section
427A.1,
subsection
8,
shall
be
assessed
as
a
percentage
12
of
its
actual
value,
as
determined
in
this
paragraph
“b”
.
13
For
valuations
established
for
the
assessment
year
beginning
14
January
1,
2013,
the
percentage
of
actual
value
as
equalized
by
15
the
director
of
revenue
as
provided
in
section
441.49
at
which
16
commercial
property
shall
be
assessed
shall
be
ninety-eight
17
percent.
For
valuations
established
for
the
assessment
year
18
beginning
January
1,
2014,
the
percentage
of
actual
value
as
19
equalized
by
the
director
of
revenue
as
provided
in
section
20
441.49
at
which
commercial
property
shall
be
assessed
shall
21
be
ninety-six
percent.
For
valuations
established
for
the
22
assessment
year
beginning
January
1,
2015,
the
percentage
23
of
actual
value
as
equalized
by
the
director
of
revenue
as
24
provided
in
section
441.49
at
which
commercial
property
shall
25
be
assessed
shall
be
ninety-four
percent.
For
valuations
26
established
for
the
assessment
year
beginning
January
1,
2016,
27
the
percentage
of
actual
value
as
equalized
by
the
director
28
of
revenue
as
provided
in
section
441.49
at
which
commercial
29
property
shall
be
assessed
shall
be
ninety-two
percent.
For
30
valuations
established
for
the
assessment
year
beginning
31
January
1,
2017,
and
each
assessment
year
thereafter,
the
32
percentage
of
actual
value
as
equalized
by
the
director
of
33
revenue
as
provided
in
section
441.49
at
which
commercial
34
property
shall
be
assessed
shall
be
ninety
percent.
35
-7-
LSB
6140HV
(3)
84
md/sc
7/
58
H.F.
2475
c.
For
valuations
established
on
or
after
January
1,
2013,
1
industrial
property,
excluding
properties
referred
to
in
2
section
427A.1,
subsection
8,
shall
be
assessed
as
a
percentage
3
of
its
actual
value,
as
determined
in
this
paragraph
“c”
.
4
For
valuations
established
for
the
assessment
year
beginning
5
January
1,
2013,
the
percentage
of
actual
value
as
equalized
by
6
the
director
of
revenue
as
provided
in
section
441.49
at
which
7
industrial
property
shall
be
assessed
shall
be
ninety-eight
8
percent.
For
valuations
established
for
the
assessment
year
9
beginning
January
1,
2014,
the
percentage
of
actual
value
as
10
equalized
by
the
director
of
revenue
as
provided
in
section
11
441.49
at
which
industrial
property
shall
be
assessed
shall
12
be
ninety-six
percent.
For
valuations
established
for
the
13
assessment
year
beginning
January
1,
2015,
the
percentage
14
of
actual
value
as
equalized
by
the
director
of
revenue
as
15
provided
in
section
441.49
at
which
industrial
property
shall
16
be
assessed
shall
be
ninety-four
percent.
For
valuations
17
established
for
the
assessment
year
beginning
January
1,
2016,
18
the
percentage
of
actual
value
as
equalized
by
the
director
19
of
revenue
as
provided
in
section
441.49
at
which
industrial
20
property
shall
be
assessed
shall
be
ninety-two
percent.
For
21
valuations
established
for
the
assessment
year
beginning
22
January
1,
2017,
and
each
assessment
year
thereafter,
the
23
percentage
of
actual
value
as
equalized
by
the
director
of
24
revenue
as
provided
in
section
441.49
at
which
industrial
25
property
shall
be
assessed
shall
be
ninety
percent.
26
Sec.
8.
NEW
SECTION
.
441.21A
Commercial
and
industrial
27
property
tax
replacement
fund
——
replacement
claims.
28
1.
a.
The
commercial
and
industrial
property
tax
29
replacement
fund
is
created
in
the
state
treasury
under
30
the
control
of
the
department
of
revenue
for
the
payment
of
31
commercial
and
industrial
property
tax
replacement
claims
in
32
fiscal
years
beginning
on
or
after
July
1,
2014.
33
b.
For
the
fiscal
year
beginning
July
1,
2014,
there
34
is
appropriated
from
the
general
fund
of
the
state
to
the
35
-8-
LSB
6140HV
(3)
84
md/sc
8/
58
H.F.
2475
department
of
revenue
to
be
credited
to
the
fund
an
amount
1
necessary
to
pay
all
commercial
and
industrial
property
2
tax
replacement
claims
for
the
fiscal
year,
not
to
exceed
3
twenty-eight
million
dollars.
For
the
fiscal
year
beginning
4
July
1,
2015,
there
is
appropriated
from
the
general
fund
of
5
the
state
to
the
department
of
revenue
to
be
credited
to
the
6
fund
an
amount
necessary
to
pay
all
commercial
and
industrial
7
property
tax
replacement
claims
for
the
fiscal
year,
not
8
to
exceed
fifty-six
million
dollars.
For
the
fiscal
year
9
beginning
July
1,
2016,
there
is
appropriated
from
the
general
10
fund
of
the
state
to
the
department
of
revenue
to
be
credited
11
to
the
fund
an
amount
necessary
to
pay
all
commercial
and
12
industrial
property
tax
replacement
claims
for
the
fiscal
year,
13
not
to
exceed
eighty-four
million
dollars.
For
the
fiscal
14
year
beginning
July
1,
2017,
there
is
appropriated
from
the
15
general
fund
of
the
state
to
the
department
of
revenue
to
be
16
credited
to
the
fund
an
amount
necessary
to
pay
all
commercial
17
and
industrial
property
tax
replacement
claims
for
the
fiscal
18
year,
not
to
exceed
one
hundred
twelve
million
dollars.
For
19
the
fiscal
year
beginning
July
1,
2018,
and
each
fiscal
year
20
thereafter,
there
is
appropriated
from
the
general
fund
of
21
the
state
to
the
department
of
revenue
to
be
credited
to
the
22
fund
an
amount
necessary
to
pay
all
commercial
and
industrial
23
property
tax
replacement
claims
for
the
fiscal
year,
not
to
24
exceed
one
hundred
forty
million
dollars.
25
2.
Beginning
with
the
fiscal
year
beginning
July
1,
2014,
26
each
county
treasurer
shall
be
paid
from
the
commercial
and
27
industrial
property
tax
replacement
fund
an
amount
equal
to
28
the
amount
of
the
commercial
and
industrial
property
tax
29
replacement
claims
in
the
county,
as
calculated
in
subsection
30
4.
If
an
amount
appropriated
for
a
fiscal
year
is
insufficient
31
to
pay
all
replacement
claims,
the
director
of
revenue
32
shall
prorate
the
disbursements
from
the
fund
to
the
county
33
treasurers
and
shall
notify
the
county
auditors
of
the
pro
rata
34
percentage
on
or
before
September
30.
Any
unspent
balance
in
35
-9-
LSB
6140HV
(3)
84
md/sc
9/
58
H.F.
2475
the
fund
as
of
June
30
of
each
year
shall
revert
to
the
general
1
fund
of
the
state
as
provided
by
section
8.33.
2
3.
a.
On
or
before
July
1
of
each
fiscal
year
beginning
on
3
or
after
July
1,
2014,
the
assessor
shall
determine
the
total
4
assessed
value
of
all
commercial
property,
industrial
property,
5
and
property
assessed
by
the
department
of
revenue
pursuant
to
6
chapter
434
assessed
for
taxes
due
and
payable
in
that
fiscal
7
year
and
the
total
assessed
value
of
such
property
assessed
8
as
of
January
1,
2012,
and
shall
report
the
valuations
to
the
9
county
auditor.
10
b.
For
purposes
of
calculating
replacement
claims
under
this
11
division
of
this
Act,
the
total
assessed
value
of
commercial
12
property,
industrial
property,
and
property
assessed
by
the
13
department
of
revenue
pursuant
to
chapter
434
as
of
January
1,
14
2012,
shall
not
include
property
classified
as
multiresidential
15
property
under
section
441.21,
subsection
13,
if
enacted
by
16
division
VI
of
this
Act,
which
was
classified
as
commercial
17
property,
industrial
property,
or
property
assessed
by
the
18
department
of
revenue
pursuant
to
chapter
434
for
assessment
19
years
beginning
before
January
1,
2013.
20
4.
On
or
before
September
1
of
each
fiscal
year
beginning
21
on
or
after
July
1,
2014,
the
county
auditor
shall
prepare
22
a
statement,
based
upon
the
report
received
pursuant
to
23
subsection
3,
listing
for
each
taxing
district
in
the
county:
24
a.
The
difference
between
the
assessed
valuation
of
all
25
commercial
property,
industrial
property,
and
property
assessed
26
by
the
department
of
revenue
pursuant
to
chapter
434
for
the
27
assessment
year
used
to
calculate
taxes
which
are
due
and
28
payable
in
the
applicable
fiscal
year
and
the
assessed
value
29
of
all
commercial
property,
industrial
property,
and
property
30
assessed
by
the
department
of
revenue
pursuant
to
chapter
434
31
assessed
as
of
January
1,
2012.
If
the
assessed
value
of
all
32
commercial
property,
industrial
property,
and
property
assessed
33
by
the
department
of
revenue
pursuant
to
chapter
434
assessed
34
as
of
January
1,
2012,
is
less
than
the
assessed
valuation
of
35
-10-
LSB
6140HV
(3)
84
md/sc
10/
58
H.F.
2475
all
commercial
property,
industrial
property,
and
property
1
assessed
by
the
department
of
revenue
pursuant
to
chapter
434
2
for
the
assessment
year
used
to
calculate
taxes
which
are
due
3
and
payable
in
the
applicable
fiscal
year,
there
is
no
tax
4
replacement
for
that
taxing
district
for
the
fiscal
year.
5
b.
The
tax
levy
rate
for
each
taxing
district
for
that
6
fiscal
year.
7
c.
The
commercial
and
industrial
property
tax
replacement
8
claim
for
each
taxing
district.
For
fiscal
years
beginning
on
9
or
after
July
1,
2014,
the
replacement
claim
is
equal
to
the
10
amount
determined
pursuant
to
paragraph
“a”
,
multiplied
by
the
11
tax
rate
specified
in
paragraph
“b”
.
12
5.
For
purposes
of
computing
replacement
amounts
under
13
this
section,
that
portion
of
an
urban
renewal
area
defined
as
14
the
sum
of
the
assessed
valuations
defined
in
section
403.19,
15
subsections
1
and
2,
shall
be
considered
a
taxing
district.
16
6.
a.
The
county
auditor
shall
certify
and
forward
one
copy
17
of
the
statement
to
the
department
of
revenue
not
later
than
18
September
1
of
each
year.
19
b.
The
replacement
claims
shall
be
paid
to
each
county
20
treasurer
in
equal
installments
in
September
and
March
of
each
21
year.
The
county
treasurer
shall
apportion
the
replacement
22
claim
payments
among
the
eligible
taxing
districts
in
the
23
county.
24
c.
If
the
taxing
district
is
an
urban
renewal
area,
the
25
amount
of
the
replacement
claim
shall
be
apportioned
as
26
provided
in
subsection
7.
27
7.
a.
If
the
total
assessed
value
of
property
located
in
an
28
urban
renewal
area
taxing
district
for
the
assessment
year
for
29
property
taxes
due
and
payable
in
the
applicable
fiscal
year
is
30
equal
to
or
more
than
that
portion
of
such
valuation
defined
31
in
section
403.19,
subsection
1,
the
total
replacement
claim
32
amount
computed
pursuant
to
subsection
4
shall
be
credited
to
33
that
portion
of
the
assessed
value
defined
in
section
403.19,
34
subsection
2.
35
-11-
LSB
6140HV
(3)
84
md/sc
11/
58
H.F.
2475
b.
If
the
total
assessed
value
of
the
property
located
in
an
1
urban
renewal
area
taxing
district
for
the
assessment
year
for
2
property
taxes
due
and
payable
in
the
applicable
fiscal
year
3
is
less
than
that
portion
of
such
valuation
defined
in
section
4
403.19,
subsection
1,
the
replacement
amount
shall
be
credited
5
to
those
portions
of
the
assessed
value
defined
in
section
6
403.19,
subsections
1
and
2,
as
follows:
7
(1)
To
that
portion
defined
in
section
403.19,
subsection
8
1,
an
amount
equal
to
the
amount
that
would
be
produced
by
9
multiplying
the
applicable
consolidated
levy
rate
times
the
10
difference
between
the
assessed
value
of
the
taxable
property
11
defined
in
section
403.19,
subsection
1,
and
the
total
assessed
12
value
of
the
property
located
in
the
urban
renewal
area
taxing
13
district
in
the
assessment
year
for
property
taxes
due
and
14
payable
in
the
fiscal
year
for
which
the
replacement
claim
is
15
computed.
16
(2)
To
that
portion
defined
in
section
403.19,
subsection
2,
17
the
remaining
amount,
if
any.
18
c.
Notwithstanding
the
allocation
provisions
of
paragraphs
19
“a”
and
“b”
,
the
amount
of
the
tax
replacement
amount
that
shall
20
be
allocated
to
that
portion
of
the
assessed
value
defined
21
in
section
403.19,
subsection
2,
shall
not
exceed
the
amount
22
equal
to
the
amount
certified
to
the
county
auditor
under
23
section
403.19
for
the
fiscal
year
in
which
the
claim
is
paid,
24
after
deduction
of
the
amount
of
other
revenues
committed
for
25
payment
on
that
amount
for
the
fiscal
year.
The
amount
not
26
allocated
to
that
portion
of
the
assessed
value
defined
in
27
section
403.19,
subsection
2,
as
a
result
of
the
operation
of
28
this
paragraph,
shall
be
allocated
to
that
portion
of
assessed
29
value
defined
in
section
403.19,
subsection
1.
30
d.
The
amount
of
the
replacement
claim
amount
credited
to
31
the
portion
of
the
assessed
value
defined
in
section
403.19,
32
subsection
1,
shall
be
allocated
to
and
when
received
be
paid
33
into
the
fund
for
the
respective
taxing
district
as
taxes
by
34
or
for
the
taxing
district
into
which
all
other
property
taxes
35
-12-
LSB
6140HV
(3)
84
md/sc
12/
58
H.F.
2475
are
paid.
The
amount
of
the
replacement
claim
amount
credited
1
to
the
portion
of
the
assessed
value
defined
in
section
403.19,
2
subsection
2,
shall
be
allocated
to
and
when
collected
be
paid
3
into
the
special
fund
of
the
municipality
under
section
403.19,
4
subsection
2.
5
Sec.
9.
SAVINGS
PROVISION.
This
division
of
this
Act,
6
pursuant
to
section
4.13,
does
not
affect
the
operation
of,
7
or
prohibit
the
application
of,
prior
provisions
of
section
8
441.21,
or
rules
adopted
under
chapter
17A
to
administer
prior
9
provisions
of
section
441.21,
for
assessment
years
beginning
10
before
January
1,
2013,
and
for
duties,
powers,
protests,
11
appeals,
proceedings,
actions,
or
remedies
attributable
to
an
12
assessment
year
beginning
before
January
1,
2013.
13
Sec.
10.
APPLICABILITY.
This
division
of
this
Act
applies
14
to
assessment
years
beginning
on
or
after
January
1,
2013.
15
DIVISION
III
16
TELECOMMUNICATIONS
PROPERTY
TAX
17
Sec.
11.
Section
427A.1,
subsection
1,
paragraph
h,
Code
18
2011,
is
amended
to
read
as
follows:
19
h.
Property
assessed
by
the
department
of
revenue
pursuant
20
to
sections
428.24
to
428.29
,
or
chapters
433
,
434
,
437
,
437A
,
21
and
438
.
22
Sec.
12.
Section
433.4,
Code
2011,
is
amended
to
read
as
23
follows:
24
433.4
Assessment.
25
1.
The
director
of
revenue
shall
on
or
before
October
31
26
each
year,
proceed
to
find
the
actual
value
of
the
property
27
of
these
companies
in
this
state
used
by
the
companies
in
the
28
transaction
of
telegraph
and
telephone
business
,
taking
into
29
consideration
the
information
obtained
from
the
statements
30
required,
and
any
further
information
the
director
can
obtain,
31
using
the
same
as
a
means
for
determining
the
actual
cash
value
32
of
the
property
of
these
companies
within
this
state.
The
33
director
shall
also
take
into
consideration
the
valuation
of
34
all
property
of
these
companies,
including
franchises
and
the
35
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use
of
the
property
in
connection
with
lines
outside
the
state,
1
and
making
these
deductions
as
may
be
necessary
on
account
of
2
extra
value
of
property
outside
the
state
as
compared
with
3
the
value
of
property
in
the
state,
in
order
that
the
actual
4
cash
value
of
the
property
of
the
company
within
this
state
5
may
be
ascertained.
The
assessment
shall
include
all
property
6
of
every
kind
and
character
whatsoever,
real,
personal,
or
7
mixed,
used
by
the
companies
in
the
transaction
of
telegraph
8
and
telephone
business;
and
the
The
property
so
included
in
9
the
assessment
shall
not
be
taxed
in
any
other
manner
than
as
10
provided
in
this
chapter
.
11
2.
a.
Except
as
provided
in
paragraph
“c
”,
for
assessment
12
years
beginning
on
or
after
January
1,
2013,
a
company’s
13
property,
excluding
the
property
identified
in
paragraph
“b”
14
as
exempt
from
taxation,
shall
be
subject
to
assessment
and
15
taxation
under
this
chapter
by
the
director
of
revenue
in
16
the
same
manner
as
property
assessed
and
taxed
as
commercial
17
property
under
chapters
427,
427A,
427B,
428,
and
441.
18
b.
All
of
the
following
is
exempt
from
taxation
and
shall
19
not
be
assessed
for
taxation
under
this
chapter:
20
(1)
Central
office
equipment.
21
(2)
Transmission
equipment.
22
(3)
Qualified
telephone
company
property.
However,
23
qualified
telephone
company
property
shall
be
valued
and
24
included
in
the
company’s
assessment
for
the
assessment
years,
25
and
to
the
extent
specified,
in
paragraph
“c”
.
26
(4)
Intangible
property.
27
c.
For
assessment
years
beginning
on
or
after
January
1,
28
2013,
but
before
January
1,
2018,
the
director
of
revenue
shall
29
include
as
part
of
the
actual
value
determined
under
paragraph
30
“a”
for
the
applicable
assessment
year,
the
following:
31
(1)
For
the
assessment
year
beginning
January
1,
2013,
an
32
amount
equal
to
the
actual
value
of
the
company’s
qualified
33
telephone
company
property
that
exceeds
five
million
dollars.
34
(2)
For
the
assessment
year
beginning
January
1,
2014,
an
35
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amount
equal
to
the
actual
value
of
the
company’s
qualified
1
telephone
company
property
that
exceeds
twenty-five
million
2
dollars.
3
(3)
For
the
assessment
year
beginning
January
1,
2015,
an
4
amount
equal
to
the
actual
value
of
the
company’s
qualified
5
telephone
company
property
that
exceeds
fifty
million
dollars.
6
(4)
For
the
assessment
year
beginning
January
1,
2016,
an
7
amount
equal
to
the
actual
value
of
the
company’s
qualified
8
telephone
company
property
that
exceeds
one
hundred
million
9
dollars.
10
(5)
For
the
assessment
year
beginning
January
1,
2017,
an
11
amount
equal
to
the
actual
value
of
the
company’s
qualified
12
telephone
company
property
that
exceeds
one
hundred
fifty
13
million
dollars.
14
Sec.
13.
Section
433.12,
Code
2011,
is
amended
by
adding
the
15
following
new
subsections:
16
NEW
SUBSECTION
.
1A.
As
used
in
this
chapter,
“central
17
office
equipment”
means
equipment
owned
or
leased
by
a
company
18
and
used
in
initiating,
amplifying,
switching,
or
monitoring
19
telecommunications
services,
including
such
ancillary
equipment
20
necessary
for
the
support,
regulation,
control,
repair,
or
21
testing
of
such
equipment.
22
NEW
SUBSECTION
.
2A.
As
used
in
this
chapter,
“intangible
23
property”
includes
but
is
not
limited
to
goodwill
associated
24
with
a
company.
25
NEW
SUBSECTION
.
3.
As
used
in
this
chapter,
“qualified
26
telephone
company
property”
means
telephone
wire,
telephone
27
cable,
fiber
optic
cable,
conduit
systems,
poles,
or
other
28
equipment
owned
or
leased
by
a
company
and
used
by
the
company
29
to
transmit
sound
or
data.
30
NEW
SUBSECTION
.
4.
As
used
in
this
chapter,
“transmission
31
equipment”
means
equipment
owned
or
leased
by
a
company
and
32
used
in
the
process
of
sending
information
from
one
location
to
33
another
location,
including
such
ancillary
equipment
necessary
34
for
the
support,
regulation,
control,
repair,
or
testing
of
35
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such
equipment.
1
Sec.
14.
Section
476.1D,
subsection
10,
Code
Supplement
2
2011,
is
amended
by
striking
the
subsection.
3
Sec.
15.
SAVINGS
PROVISION.
This
division
of
this
Act,
4
pursuant
to
section
4.13,
does
not
affect
the
operation
of,
5
or
prohibit
the
application
of,
prior
provisions
of
chapter
6
433,
or
rules
adopted
under
chapter
17A
to
administer
prior
7
provisions
of
chapter
433,
for
assessment
years
beginning
8
before
January
1,
2013,
and
for
duties,
powers,
protests,
9
appeals,
proceedings,
actions,
or
remedies
attributable
to
an
10
assessment
year
beginning
before
January
1,
2013.
11
Sec.
16.
IMPLEMENTATION.
Section
25B.7
shall
not
apply
to
12
this
division
of
this
Act.
13
Sec.
17.
EFFECTIVE
DATE.
14
1.
Except
as
provided
in
subsection
2,
this
division
of
this
15
Act
takes
effect
July
1,
2012.
16
2.
The
section
of
this
division
of
this
Act
amending
section
17
476.1D
takes
effect
July
1,
2017.
18
Sec.
18.
APPLICABILITY.
19
1.
Except
as
provided
in
subsection
2,
this
division
of
this
20
Act
applies
to
assessment
years
beginning
on
or
after
January
21
1,
2013.
22
2.
The
section
of
this
division
of
this
Act
amending
section
23
476.1D
applies
to
assessment
years
beginning
on
or
after
24
January
1,
2018.
25
DIVISION
IV
26
COUNTY
AND
CITY
BUDGET
LIMITATION
27
Sec.
19.
Section
23A.2,
subsection
10,
paragraph
h,
Code
28
2011,
is
amended
to
read
as
follows:
29
h.
The
performance
of
an
activity
listed
in
section
331.424
,
30
Code
2011,
as
a
service
for
which
a
supplemental
levy
county
31
may
be
certified
include
in
its
budget
.
32
Sec.
20.
Section
28M.5,
subsection
2,
Code
2011,
is
amended
33
to
read
as
follows:
34
2.
If
a
regional
transit
district
budget
allocates
35
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revenue
responsibilities
to
the
board
of
supervisors
of
a
1
participating
county,
the
amount
of
the
regional
transit
2
district
levy
that
is
the
responsibility
of
the
participating
3
county
shall
be
deducted
from
the
maximum
rates
amount
of
taxes
4
authorized
to
be
levied
by
the
county
pursuant
to
section
5
331.423
,
subsections
1
and
2
subsection
3,
paragraphs
“b”
6
and
“c”
,
as
applicable,
unless
the
county
meets
its
revenue
7
responsibilities
as
allocated
in
the
budget
from
other
8
available
revenue
sources.
However,
for
a
regional
transit
9
district
that
includes
a
county
with
a
population
of
less
than
10
three
hundred
thousand,
the
amount
of
the
regional
transit
11
district
levy
that
is
the
responsibility
of
such
participating
12
county
shall
be
deducted
from
the
maximum
rate
amount
of
taxes
13
authorized
to
be
levied
by
the
county
pursuant
to
section
14
331.423,
subsection
1
3,
paragraph
“b”
.
15
Sec.
21.
Section
123.38,
subsection
2,
Code
2011,
is
amended
16
to
read
as
follows:
17
2.
Any
licensee
or
permittee,
or
the
licensee’s
or
18
permittee’s
executor
or
administrator,
or
any
person
duly
19
appointed
by
the
court
to
take
charge
of
and
administer
the
20
property
or
assets
of
the
licensee
or
permittee
for
the
benefit
21
of
the
licensee’s
or
permittee’s
creditors,
may
voluntarily
22
surrender
a
license
or
permit
to
the
division.
When
a
license
23
or
permit
is
surrendered
the
division
shall
notify
the
local
24
authority,
and
the
division
or
the
local
authority
shall
25
refund
to
the
person
surrendering
the
license
or
permit,
a
26
proportionate
amount
of
the
fee
received
by
the
division
or
27
the
local
authority
for
the
license
or
permit
as
follows:
if
28
a
license
or
permit
is
surrendered
during
the
first
three
29
months
of
the
period
for
which
it
was
issued,
the
refund
shall
30
be
three-fourths
of
the
amount
of
the
fee;
if
surrendered
31
more
than
three
months
but
not
more
than
six
months
after
32
issuance,
the
refund
shall
be
one-half
of
the
amount
of
the
33
fee;
if
surrendered
more
than
six
months
but
not
more
than
34
nine
months
after
issuance,
the
refund
shall
be
one-fourth
of
35
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the
amount
of
the
fee.
No
refund
shall
be
made,
however,
for
1
any
special
liquor
permit,
nor
for
a
liquor
control
license,
2
wine
permit,
or
beer
permit
surrendered
more
than
nine
months
3
after
issuance.
For
purposes
of
this
subsection,
any
portion
4
of
license
or
permit
fees
used
for
the
purposes
authorized
in
5
section
331.424,
subsection
1
,
paragraph
“a”
,
subparagraphs
6
(1)
and
(2),
Code
2011,
and
in
section
331.424A
,
shall
not
be
7
deemed
received
either
by
the
division
or
by
a
local
authority.
8
No
refund
shall
be
made
to
any
licensee
or
permittee,
upon
the
9
surrender
of
the
license
or
permit,
if
there
is
at
the
time
10
of
surrender,
a
complaint
filed
with
the
division
or
local
11
authority,
charging
the
licensee
or
permittee
with
a
violation
12
of
this
chapter
.
If
upon
a
hearing
on
a
complaint
the
license
13
or
permit
is
not
revoked
or
suspended,
then
the
licensee
or
14
permittee
is
eligible,
upon
surrender
of
the
license
or
permit,
15
to
receive
a
refund
as
provided
in
this
section
;
but
if
the
16
license
or
permit
is
revoked
or
suspended
upon
hearing
the
17
licensee
or
permittee
is
not
eligible
for
the
refund
of
any
18
portion
of
the
license
or
permit
fee.
19
Sec.
22.
Section
218.99,
Code
2011,
is
amended
to
read
as
20
follows:
21
218.99
Counties
to
be
notified
of
patients’
personal
22
accounts.
23
The
administrator
in
control
of
a
state
institution
shall
24
direct
the
business
manager
of
each
institution
under
the
25
administrator’s
jurisdiction
which
is
mentioned
in
section
26
331.424,
subsection
1
,
paragraph
“a”
,
subparagraphs
(1)
27
and
(2),
and
for
which
services
are
paid
under
section
28
331.424A
,
to
quarterly
inform
the
county
of
legal
settlement’s
29
entity
designated
to
perform
the
county’s
central
point
of
30
coordination
process
of
any
patient
or
resident
who
has
an
31
amount
in
excess
of
two
hundred
dollars
on
account
in
the
32
patients’
personal
deposit
fund
and
the
amount
on
deposit.
The
33
administrators
shall
direct
the
business
manager
to
further
34
notify
the
entity
designated
to
perform
the
county’s
central
35
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point
of
coordination
process
at
least
fifteen
days
before
the
1
release
of
funds
in
excess
of
two
hundred
dollars
or
upon
the
2
death
of
the
patient
or
resident.
If
the
patient
or
resident
3
has
no
county
of
legal
settlement,
notice
shall
be
made
to
the
4
director
of
human
services
and
the
administrator
in
control
of
5
the
institution
involved.
6
Sec.
23.
Section
331.263,
subsection
2,
Code
2011,
is
7
amended
to
read
as
follows:
8
2.
The
governing
body
of
the
community
commonwealth
9
shall
have
the
authority
to
levy
county
taxes
and
shall
10
have
the
authority
to
levy
city
taxes
to
the
extent
the
11
city
tax
levy
authority
is
transferred
by
the
charter
to
12
the
community
commonwealth.
A
city
participating
in
the
13
community
commonwealth
shall
transfer
a
portion
of
the
14
city’s
tax
levy
authorized
under
section
384.1
or
384.12
,
15
whichever
is
applicable,
to
the
governing
body
of
the
community
16
commonwealth.
The
maximum
rates
amount
of
taxes
authorized
to
17
be
levied
under
sections
section
384.1
and
the
maximum
amount
18
of
taxes
authorized
to
be
levied
under
section
384.12
by
a
city
19
participating
in
the
community
commonwealth
shall
be
reduced
20
by
an
amount
equal
to
the
rates
of
the
same
or
similar
taxes
21
levied
in
the
city
by
the
governing
body
of
the
community
22
commonwealth.
23
Sec.
24.
Section
331.301,
subsection
12,
Code
Supplement
24
2011,
is
amended
to
read
as
follows:
25
12.
The
board
of
supervisors
may
credit
funds
to
a
reserve
26
for
the
purposes
authorized
by
subsection
11
of
this
section
;
27
section
331.424,
subsection
1
,
paragraph
“a”
,
subparagraph
28
(6);
and
section
331.441,
subsection
2
,
paragraph
“b”
.
Moneys
29
credited
to
the
reserve,
and
interest
earned
on
such
moneys,
30
shall
remain
in
the
reserve
until
expended
for
purposes
31
authorized
by
subsection
11
of
this
section
;
section
331.424,
32
subsection
1
,
paragraph
“a”
,
subparagraph
(6);
or
section
33
331.441,
subsection
2
,
paragraph
“b”
.
34
Sec.
25.
Section
331.421,
subsections
1
and
10,
Code
2011,
35
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2475
are
amended
by
striking
the
subsections.
1
Sec.
26.
Section
331.421,
Code
2011,
is
amended
by
adding
2
the
following
new
subsection:
3
NEW
SUBSECTION
.
7A.
“Item”
means
a
budgeted
expenditure,
4
appropriation,
or
cash
reserve
from
a
fund
for
a
service
area,
5
program,
program
element,
or
purpose.
6
Sec.
27.
Section
331.423,
Code
2011,
is
amended
by
striking
7
the
section
and
inserting
in
lieu
thereof
the
following:
8
331.423
Property
tax
dollars
——
maximums.
9
1.
Annually,
the
board
shall
determine
separate
property
10
tax
levy
limits
to
pay
for
general
county
services
and
rural
11
county
services
in
accordance
with
this
section.
The
property
12
tax
levies
separately
certified
for
general
county
services
and
13
rural
county
services
under
section
331.434
shall
not
raise
14
property
tax
dollars
that
exceed
the
amount
determined
under
15
this
section.
16
2.
For
purposes
of
this
section
and
section
331.423B,
unless
17
the
context
otherwise
requires:
18
a.
“Annual
growth
factor”
means
an
index,
expressed
as
19
a
percentage,
determined
by
the
department
of
management
by
20
January
1
of
the
calendar
year
in
which
the
budget
year
begins.
21
In
determining
the
annual
growth
factor,
the
department
shall
22
calculate
the
average
of
the
preceding
twelve-month
percentage
23
change,
which
shall
be
computed
on
a
monthly
basis,
in
the
24
midwest
consumer
price
index,
ending
with
the
percentage
change
25
for
the
month
of
November.
The
department
shall
then
add
that
26
average
percentage
change
to
one
hundred
percent.
In
no
case,
27
however,
shall
the
annual
growth
factor
exceed
one
hundred
four
28
percent.
29
b.
“Boundary
adjustment”
means
annexation,
severance,
30
incorporation,
or
discontinuance
as
those
terms
are
defined
in
31
section
368.1.
32
c.
“Budget
year”
is
the
fiscal
year
beginning
during
the
33
calendar
year
in
which
a
budget
is
certified.
34
d.
“Current
fiscal
year”
is
the
fiscal
year
ending
during
35
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the
calendar
year
in
which
a
budget
is
certified.
1
e.
“Net
new
valuation
taxes”
means
the
amount
of
property
2
tax
dollars
equal
to
the
current
fiscal
year’s
levy
rate
in
3
the
county
for
general
county
services
or
for
rural
county
4
services,
as
applicable,
multiplied
by
the
increase
from
the
5
current
fiscal
year
to
the
budget
year
in
taxable
valuation
due
6
to
the
following:
7
(1)
Net
new
construction,
excluding
all
incremental
8
valuation
that
is
released
in
any
one
year
from
either
a
9
division
of
revenue
under
section
260E.4
or
357H.9,
or
an
10
urban
renewal
area
for
which
taxes
were
being
divided
under
11
section
403.19
if
the
property
for
the
valuation
being
released
12
remains
subject
to
the
division
of
revenue
under
section
260E.4
13
or
357H.9,
or
remains
part
of
the
urban
renewal
area
that
is
14
subject
to
a
division
of
revenue
under
section
403.19.
15
(2)
Additions
or
improvements
to
existing
structures.
16
(3)
Remodeling
of
existing
structures
for
which
a
building
17
permit
is
required.
18
(4)
Net
boundary
adjustment.
19
(5)
A
municipality
no
longer
dividing
tax
revenues
in
an
20
urban
renewal
area
as
provided
in
section
403.19,
a
community
21
college
no
longer
dividing
revenues
as
provided
in
section
22
260E.4,
or
a
rural
improvement
zone
no
longer
dividing
revenues
23
as
provided
in
section
357H.9.
24
(6)
That
portion
of
taxable
property
located
in
an
urban
25
revitalization
area
on
which
an
exemption
was
allowed
and
such
26
exemption
has
expired.
27
3.
a.
For
the
fiscal
year
beginning
July
1,
2013,
and
28
subsequent
fiscal
years,
the
maximum
amount
of
property
tax
29
dollars
which
may
be
certified
for
levy
by
a
county
for
general
30
county
services
and
rural
county
services
shall
be
the
maximum
31
property
tax
dollars
calculated
under
paragraphs
“b”
and
“c”
,
32
respectively.
33
b.
The
maximum
property
tax
dollars
that
may
be
levied
for
34
general
county
services
is
an
amount
equal
to
the
sum
of
the
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following:
1
(1)
The
annual
growth
factor
times
the
current
fiscal
year’s
2
maximum
property
tax
dollars
for
general
county
services.
3
(2)
The
amount
of
net
new
valuation
taxes
in
the
county.
4
c.
The
maximum
property
tax
dollars
that
may
be
levied
for
5
rural
county
services
is
an
amount
equal
to
the
sum
of
the
6
following:
7
(1)
The
annual
growth
factor
times
the
current
fiscal
year’s
8
maximum
property
tax
dollars
for
rural
county
services.
9
(2)
The
amount
of
net
new
valuation
taxes
in
the
10
unincorporated
area
of
the
county.
11
4.
a.
For
purposes
of
calculating
maximum
property
tax
12
dollars
for
general
county
services
for
the
fiscal
year
13
beginning
July
1,
2013,
only,
the
term
“current
fiscal
year’s
14
maximum
property
tax
dollars”
shall
mean
the
total
amount
of
15
property
tax
dollars
certified
by
the
county
for
general
county
16
services
for
the
fiscal
year
beginning
July
1,
2012.
17
b.
For
purposes
of
calculating
maximum
property
tax
dollars
18
for
rural
county
services
for
the
fiscal
year
beginning
July
19
1,
2013,
only,
the
term
“current
fiscal
year’s
maximum
property
20
tax
dollars”
shall
mean
the
total
amount
of
property
tax
dollars
21
certified
by
the
county
for
rural
county
services
for
the
22
fiscal
year
beginning
July
1,
2012.
23
5.
Property
taxes
certified
for
mental
health,
mental
24
retardation,
and
developmental
disabilities
services,
the
25
emergency
services
fund
in
section
331.424C,
the
debt
service
26
fund
in
section
331.430,
any
capital
projects
fund
established
27
by
the
county
for
deposit
of
bond,
loan,
or
note
proceeds,
and
28
any
temporary
increase
approved
pursuant
to
section
331.424,
29
are
not
included
in
the
maximum
amount
of
property
tax
dollars
30
that
may
be
certified
for
a
budget
year
under
subsection
3.
31
6.
The
department
of
management,
in
consultation
with
the
32
county
finance
committee,
shall
adopt
rules
to
administer
this
33
section.
The
department
shall
prescribe
forms
to
be
used
by
34
counties
when
making
calculations
required
by
this
section.
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Sec.
28.
NEW
SECTION
.
331.423B
Ending
fund
balance.
1
1.
a.
Budgeted
ending
fund
balances
for
a
budget
year
2
in
excess
of
twenty-five
percent
of
budgeted
expenditures
in
3
either
the
general
fund
or
rural
services
fund
for
that
budget
4
year
shall
be
explicitly
reserved
or
designated
for
a
specific
5
purpose.
6
b.
A
county
is
encouraged,
but
not
required,
to
reduce
7
ending
fund
balances
for
the
budget
year
to
an
amount
equal
to
8
approximately
twenty-five
percent
of
budgeted
expenditures
and
9
transfers
from
the
general
fund
and
rural
services
fund
for
10
that
budget
year
unless
a
decision
is
certified
by
the
state
11
appeal
board
ordering
a
reduction
in
the
ending
fund
balance
12
of
any
of
those
funds.
13
c.
In
a
protest
to
the
county
budget
under
section
331.436,
14
the
county
shall
have
the
burden
of
proving
that
the
budgeted
15
balances
in
excess
of
twenty-five
percent
are
reasonably
likely
16
to
be
appropriated
for
the
explicitly
reserved
or
designated
17
specific
purpose.
The
excess
budgeted
balance
for
the
specific
18
purpose
shall
be
considered
an
increase
in
an
item
in
the
19
budget
for
purposes
of
section
24.28.
20
2.
a.
For
a
county
that
has,
as
of
June
30,
2012,
reduced
21
its
actual
ending
fund
balance
to
less
than
twenty-five
22
percent
of
actual
expenditures,
additional
property
taxes
may
23
be
computed
and
levied
as
provided
in
this
subsection.
The
24
additional
property
tax
levy
amount
is
an
amount
not
to
exceed
25
twenty-five
percent
of
actual
expenditures
from
the
general
26
fund
and
rural
services
fund
for
the
fiscal
year
beginning
July
27
1,
2011,
minus
the
combined
ending
fund
balances
for
those
28
funds
for
that
year.
29
b.
The
amount
of
the
additional
property
taxes
shall
be
30
apportioned
between
the
general
fund
and
the
rural
services
31
fund.
However,
the
amount
apportioned
for
general
county
32
services
and
for
rural
county
services
shall
not
exceed
for
33
each
fund
twenty-five
percent
of
actual
expenditures
for
the
34
fiscal
year
beginning
July
1,
2011.
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c.
All
or
a
portion
of
additional
property
tax
dollars
1
may
be
levied
for
the
purpose
of
increasing
cash
reserves
2
for
general
county
services
and
rural
county
services
in
the
3
budget
year.
The
additional
property
tax
dollars
authorized
4
under
this
subsection
but
not
levied
may
be
carried
forward
as
5
unused
ending
fund
balance
taxing
authority
until
and
for
the
6
fiscal
year
beginning
July
1,
2018.
The
amount
carried
forward
7
shall
not
exceed
twenty-five
percent
of
the
maximum
amount
of
8
property
tax
dollars
available
in
the
current
fiscal
year.
9
Additionally,
property
taxes
that
are
levied
as
unused
ending
10
fund
balance
taxing
authority
under
this
subsection
may
be
the
11
subject
of
a
protest
under
section
331.436,
and
the
amount
12
will
be
considered
an
increase
in
an
item
in
the
budget
for
13
purposes
of
section
24.28.
The
amount
of
additional
property
14
taxes
levied
under
this
subsection
shall
not
be
included
in
the
15
computation
of
the
maximum
amount
of
property
tax
dollars
which
16
may
be
certified
and
levied
under
section
331.423.
17
Sec.
29.
Section
331.424,
Code
2011,
is
amended
by
striking
18
the
section
and
inserting
in
lieu
thereof
the
following:
19
331.424
Authority
to
levy
beyond
maximum
property
tax
20
dollars.
21
1.
The
board
may
certify
additions
to
the
maximum
amount
22
of
property
tax
dollars
to
be
levied
for
a
period
of
time
not
23
to
exceed
two
years
if
the
proposition
has
been
submitted
at
a
24
special
election
and
received
a
favorable
majority
of
the
votes
25
cast
on
the
proposition.
26
2.
The
special
election
is
subject
to
the
following:
27
a.
The
board
must
give
at
least
thirty-two
days’
notice
to
28
the
county
commissioner
of
elections
that
the
special
election
29
is
to
be
held.
In
no
case,
however,
shall
a
notice
be
given
to
30
the
county
commissioner
of
elections
after
December
31
for
an
31
election
on
a
proposition
to
exceed
the
statutory
limits
during
32
the
fiscal
year
beginning
in
the
next
calendar
year.
33
b.
The
special
election
shall
be
conducted
by
the
county
34
commissioner
of
elections
in
accordance
with
law.
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c.
The
proposition
to
be
submitted
shall
be
substantially
1
in
the
following
form:
2
Vote
“yes”
or
“no”
on
the
following:
Shall
the
county
of
3
_______
levy
for
an
additional
$_______
each
year
for
___
years
4
beginning
July
1,
_____,
in
excess
of
the
statutory
limits
5
otherwise
applicable
for
the
(general
county
services
or
rural
6
services)
fund?
7
d.
The
canvass
shall
be
held
beginning
at
1:00
p.m.
on
8
the
second
day
which
is
not
a
holiday
following
the
special
9
election.
10
e.
Notice
of
the
special
election
shall
be
published
at
11
least
once
in
a
newspaper
as
specified
in
section
331.305
prior
12
to
the
date
of
the
special
election.
The
notice
shall
appear
13
as
early
as
practicable
after
the
board
has
voted
to
submit
14
a
proposition
to
the
voters
to
levy
additional
property
tax
15
dollars.
16
3.
Registered
voters
in
the
county
may
vote
on
the
17
proposition
to
increase
property
taxes
for
the
general
fund
18
in
excess
of
the
statutory
limit.
Registered
voters
residing
19
outside
the
corporate
limits
of
a
city
within
the
county
may
20
vote
on
the
proposition
to
increase
property
taxes
for
the
21
rural
services
fund
in
excess
of
the
statutory
limit.
22
4.
The
amount
of
additional
property
tax
dollars
certified
23
under
this
section
shall
not
be
included
in
the
computation
24
of
the
maximum
amount
of
property
tax
dollars
which
may
be
25
certified
and
levied
under
section
331.423.
26
Sec.
30.
Section
331.424A,
subsection
4,
Code
Supplement
27
2011,
is
amended
to
read
as
follows:
28
4.
For
the
fiscal
year
beginning
July
1,
1996,
and
for
each
29
subsequent
fiscal
year,
the
county
shall
certify
a
levy
for
30
payment
of
services.
For
each
fiscal
year,
county
revenues
31
from
taxes
imposed
by
the
county
credited
to
the
services
fund
32
shall
not
exceed
an
amount
equal
to
the
amount
of
base
year
33
expenditures
for
services
as
defined
in
section
331.438
,
less
34
the
amount
of
property
tax
relief
to
be
received
pursuant
to
35
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section
426B.2
,
in
the
fiscal
year
for
which
the
budget
is
1
certified.
The
county
auditor
and
the
board
of
supervisors
2
shall
reduce
the
amount
of
the
levy
certified
for
the
services
3
fund
by
the
amount
of
property
tax
relief
to
be
received.
A
4
levy
certified
under
this
section
is
not
subject
to
the
appeal
5
provisions
of
section
331.426
or
to
any
other
provision
in
law
6
authorizing
a
county
to
exceed,
increase,
or
appeal
a
property
7
tax
levy
limit.
8
Sec.
31.
Section
331.427,
subsection
3,
paragraph
l,
Code
9
2011,
is
amended
to
read
as
follows:
10
l.
Services
listed
in
section
331.424,
subsection
1
,
Code
11
2011,
and
section
331.554
.
12
Sec.
32.
Section
331.428,
subsection
2,
paragraph
d,
Code
13
2011,
is
amended
to
read
as
follows:
14
d.
Services
listed
under
section
331.424,
subsection
2
,
Code
15
2011
.
16
Sec.
33.
Section
331.434,
subsection
1,
Code
2011,
is
17
amended
to
read
as
follows:
18
1.
The
budget
shall
show
the
amount
required
for
each
class
19
of
proposed
expenditures,
a
comparison
of
the
amounts
proposed
20
to
be
expended
with
the
amounts
expended
for
like
purposes
for
21
the
two
preceding
years,
the
revenues
from
sources
other
than
22
property
taxation,
and
the
amount
to
be
raised
by
property
23
taxation,
in
the
detail
and
form
prescribed
by
the
director
24
of
the
department
of
management.
For
each
county
that
has
25
established
an
urban
renewal
area,
the
budget
shall
include
26
estimated
and
actual
tax
increment
financing
revenues
and
all
27
estimated
and
actual
expenditures
of
the
revenues,
proceeds
28
from
debt
and
all
estimated
and
actual
expenditures
of
the
29
debt
proceeds,
and
identification
of
any
entity
receiving
a
30
direct
payment
of
taxes
funded
by
tax
increment
financing
31
revenues
and
shall
include
the
total
amount
of
loans,
advances,
32
indebtedness,
or
bonds
outstanding
at
the
close
of
the
most
33
recently
ended
fiscal
year,
which
qualify
for
payment
from
the
34
special
fund
created
in
section
403.19
,
including
interest
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negotiated
on
such
loans,
advances,
indebtedness,
or
bonds.
1
For
purposes
of
this
subsection
,
“indebtedness”
includes
2
written
agreements
whereby
the
county
agrees
to
suspend,
abate,
3
exempt,
rebate,
refund,
or
reimburse
property
taxes,
provide
4
a
grant
for
property
taxes
paid,
or
make
a
direct
payment
5
of
taxes,
with
moneys
in
the
special
fund.
The
amount
of
6
loans,
advances,
indebtedness,
or
bonds
shall
be
listed
in
7
the
aggregate
for
each
county
reporting.
The
county
finance
8
committee,
in
consultation
with
the
department
of
management
9
and
the
legislative
services
agency,
shall
determine
reporting
10
criteria
and
shall
prepare
a
form
for
reports
filed
with
the
11
department
pursuant
to
this
section
.
The
department
shall
make
12
the
information
available
by
electronic
means.
13
Sec.
34.
Section
373.10,
Code
2011,
is
amended
to
read
as
14
follows:
15
373.10
Taxing
authority.
16
The
metropolitan
council
shall
have
the
authority
to
17
levy
city
taxes
to
the
extent
the
city
tax
levy
authority
18
is
transferred
by
the
charter
to
the
metropolitan
council.
19
A
member
city
shall
transfer
a
portion
of
the
city’s
tax
20
levy
authorized
under
section
384.1
or
384.12
,
whichever
is
21
applicable,
to
the
metropolitan
council.
The
maximum
rates
22
amount
of
taxes
authorized
to
be
levied
under
sections
section
23
384.1
and
the
taxes
authorized
to
be
levied
under
section
24
384.12
by
a
member
city
shall
be
reduced
by
an
amount
equal
to
25
the
rates
of
the
same
or
similar
taxes
levied
in
the
city
by
the
26
metropolitan
council.
27
Sec.
35.
Section
384.1,
Code
2011,
is
amended
by
striking
28
the
section
and
inserting
in
lieu
thereof
the
following:
29
384.1
Property
tax
dollars
——
maximums.
30
1.
A
city
shall
certify
taxes
to
be
levied
by
the
city
31
on
all
taxable
property
within
the
city
limits,
for
all
city
32
government
purposes.
Annually,
the
city
council
may
certify
33
basic
levies
for
city
government
purposes,
subject
to
the
34
limitation
on
property
tax
dollars
provided
in
this
section.
35
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2.
For
purposes
of
this
section
and
section
384.1B,
unless
1
the
context
otherwise
requires:
2
a.
“Annual
growth
factor”
means
an
index,
expressed
as
3
a
percentage,
determined
by
the
department
of
management
by
4
January
1
of
the
calendar
year
in
which
the
budget
year
begins.
5
In
determining
the
annual
growth
factor,
the
department
shall
6
calculate
the
average
of
the
preceding
twelve-month
percentage
7
change,
which
shall
be
computed
on
a
monthly
basis,
in
the
8
midwest
consumer
price
index,
ending
with
the
percentage
change
9
for
the
month
of
November.
The
department
shall
then
add
that
10
average
percentage
change
to
one
hundred
percent.
In
no
case,
11
however,
shall
the
annual
growth
factor
exceed
one
hundred
four
12
percent.
13
b.
“Boundary
adjustment”
means
annexation,
severance,
14
incorporation,
or
discontinuance
as
those
terms
are
defined
in
15
section
368.1.
16
c.
“Budget
year”
is
the
fiscal
year
beginning
during
the
17
calendar
year
in
which
a
budget
is
certified.
18
d.
“Current
fiscal
year”
is
the
fiscal
year
ending
during
19
the
calendar
year
in
which
a
budget
is
certified.
20
e.
“Net
new
valuation
taxes”
means
the
amount
of
property
21
tax
dollars
equal
to
the
current
fiscal
year’s
levy
rate
in
the
22
city
for
the
general
fund
multiplied
by
the
increase
from
the
23
current
fiscal
year
to
the
budget
year
in
taxable
valuation
due
24
to
the
following:
25
(1)
Net
new
construction,
excluding
all
incremental
26
valuation
that
is
released
in
any
one
year
from
either
a
27
division
of
revenue
under
section
260E.4
or
an
urban
renewal
28
area
for
which
taxes
were
being
divided
under
section
403.19
if
29
the
property
for
the
valuation
being
released
remains
subject
30
to
the
division
of
revenue
under
section
260E.4
or
remains
part
31
of
the
urban
renewal
area
that
is
subject
to
a
division
of
32
revenue
under
section
403.19.
33
(2)
Additions
or
improvements
to
existing
structures.
34
(3)
Remodeling
of
existing
structures
for
which
a
building
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2475
permit
is
required.
1
(4)
Net
boundary
adjustment.
2
(5)
A
municipality
no
longer
dividing
tax
revenues
in
an
3
urban
renewal
area
as
provided
in
section
403.19
or
a
community
4
college
no
longer
dividing
revenues
as
provided
in
section
5
260E.4.
6
(6)
That
portion
of
taxable
property
located
in
an
urban
7
revitalization
area
on
which
an
exemption
was
allowed
and
such
8
exemption
has
expired.
9
3.
a.
For
the
fiscal
year
beginning
July
1,
2013,
and
10
subsequent
fiscal
years,
the
maximum
amount
of
property
11
tax
dollars
which
may
be
certified
for
levy
by
a
city
for
12
the
general
fund
shall
be
the
maximum
property
tax
dollars
13
calculated
under
paragraph
“b”
.
14
b.
The
maximum
property
tax
dollars
that
may
be
levied
for
15
deposit
in
the
general
fund
is
an
amount
equal
to
the
sum
of
the
16
following:
17
(1)
The
annual
growth
factor
times
the
current
fiscal
year’s
18
maximum
property
tax
dollars
for
the
general
fund.
19
(2)
The
amount
of
net
new
valuation
taxes
in
the
city.
20
4.
For
purposes
of
calculating
maximum
property
tax
dollars
21
for
the
city
general
fund
for
the
fiscal
year
beginning
July
22
1,
2013,
only,
the
term
“current
fiscal
year’s
maximum
property
23
tax
dollars”
shall
mean
the
total
amount
of
property
tax
dollars
24
certified
by
the
city
for
the
city’s
general
fund
for
the
25
fiscal
year
beginning
July
1,
2012.
26
5.
Property
taxes
certified
for
deposit
in
the
debt
service
27
fund
in
section
384.4,
trust
and
agency
funds
in
section
28
384.6,
capital
improvements
reserve
fund
in
section
384.7,
29
the
emergency
fund
in
section
384.8,
any
capital
projects
30
fund
established
by
the
city
for
deposit
of
bond,
loan,
or
31
note
proceeds,
any
temporary
increase
approved
pursuant
to
32
section
384.12A,
property
taxes
collected
from
a
voted
levy
in
33
section
384.12,
and
property
taxes
levied
under
section
384.12,
34
subsection
18,
are
not
counted
against
the
maximum
amount
of
35
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property
tax
dollars
that
may
be
certified
for
a
fiscal
year
1
under
subsection
3.
2
6.
Notwithstanding
the
maximum
amount
of
taxes
a
city
3
may
certify
for
levy,
the
tax
levied
by
a
city
on
tracts
of
4
land
and
improvements
on
the
tracts
of
land
used
and
assessed
5
for
agricultural
or
horticultural
purposes
shall
not
exceed
6
three
dollars
and
three-eighths
cents
per
thousand
dollars
7
of
assessed
value
in
any
year.
Improvements
located
on
such
8
tracts
of
land
and
not
used
for
agricultural
or
horticultural
9
purposes
and
all
residential
dwellings
are
subject
to
the
same
10
rate
of
tax
levied
by
the
city
on
all
other
taxable
property
11
within
the
city.
12
7.
The
department
of
management,
in
consultation
with
the
13
city
finance
committee,
shall
adopt
rules
to
administer
this
14
section.
The
department
shall
prescribe
forms
to
be
used
by
15
cities
when
making
calculations
required
by
this
section.
16
Sec.
36.
NEW
SECTION
.
384.1B
Ending
fund
balance.
17
1.
a.
Budgeted
ending
fund
balances
for
a
budget
year
in
18
excess
of
twenty-five
percent
of
budgeted
expenditures
from
the
19
general
fund
for
that
budget
year
shall
be
explicitly
reserved
20
or
designated
for
a
specific
purpose.
21
b.
A
city
is
encouraged,
but
not
required,
to
reduce
22
ending
fund
balances
for
the
budget
year
to
an
amount
equal
to
23
approximately
twenty-five
percent
of
budgeted
expenditures
and
24
transfers
from
the
general
fund
for
that
budget
year
unless
25
a
decision
is
certified
by
the
state
appeal
board
ordering
a
26
reduction
in
the
ending
fund
balance
of
the
fund.
27
c.
In
a
protest
to
the
city
budget
under
section
384.19,
28
the
city
shall
have
the
burden
of
proving
that
the
budgeted
29
balances
in
excess
of
twenty-five
percent
are
reasonably
likely
30
to
be
appropriated
for
the
explicitly
reserved
or
designated
31
specific
purpose.
The
excess
budgeted
balance
for
the
specific
32
purpose
shall
be
considered
an
increase
in
an
item
in
the
33
budget
for
purposes
of
section
24.28.
34
2.
a.
For
a
city
that
has,
as
of
June
30,
2012,
reduced
its
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ending
fund
balance
to
less
than
twenty-five
percent
of
actual
1
expenditures,
additional
property
taxes
may
be
computed
and
2
levied
as
provided
in
this
subsection.
The
additional
property
3
tax
levy
amount
is
an
amount
not
to
exceed
the
difference
4
between
twenty-five
percent
of
actual
expenditures
for
city
5
government
purposes
for
the
fiscal
year
beginning
July
1,
2011,
6
minus
the
ending
fund
balance
for
that
year.
7
b.
All
or
a
portion
of
additional
property
tax
dollars
8
may
be
levied
for
the
purpose
of
increasing
cash
reserves
for
9
city
government
purposes
in
the
budget
year.
The
additional
10
property
tax
dollars
authorized
under
this
subsection
but
not
11
levied
may
be
carried
forward
as
unused
ending
fund
balance
12
taxing
authority
until
and
for
the
fiscal
year
beginning
13
July
1,
2018.
The
amount
carried
forward
shall
not
exceed
14
twenty-five
percent
of
the
maximum
amount
of
property
tax
15
dollars
available
in
the
current
fiscal
year.
Additionally,
16
property
taxes
that
are
levied
as
unused
ending
fund
balance
17
taxing
authority
under
this
subsection
may
be
the
subject
of
a
18
protest
under
section
384.19,
and
the
amount
will
be
considered
19
an
increase
in
an
item
in
the
budget
for
purposes
of
section
20
24.28.
The
amount
of
additional
property
tax
dollars
levied
21
under
this
subsection
shall
not
be
included
in
the
computation
22
of
the
maximum
amount
of
property
tax
dollars
which
may
be
23
certified
and
levied
under
section
384.1.
24
Sec.
37.
Section
384.12,
subsection
20,
Code
2011,
is
25
amended
by
striking
the
subsection.
26
Sec.
38.
NEW
SECTION
.
384.12A
Authority
to
levy
beyond
27
maximum
property
tax
dollars.
28
1.
The
city
council
may
certify
additions
to
the
maximum
29
amount
of
property
tax
dollars
to
be
levied
for
a
period
of
30
time
not
to
exceed
two
years
if
the
proposition
has
been
31
submitted
at
a
special
election
and
received
a
favorable
32
majority
of
the
votes
cast
on
the
proposition.
33
2.
The
special
election
is
subject
to
the
following:
34
a.
The
city
council
must
give
at
least
thirty-two
days’
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notice
to
the
county
commissioner
of
elections
that
the
special
1
election
is
to
be
held.
In
no
case,
however,
shall
a
notice
be
2
given
to
the
county
commissioner
of
elections
after
December
31
3
for
an
election
on
a
proposition
to
exceed
the
statutory
limits
4
during
the
fiscal
year
beginning
in
the
next
calendar
year.
5
b.
The
special
election
shall
be
conducted
by
the
county
6
commissioner
of
elections
in
accordance
with
law.
7
c.
The
proposition
to
be
submitted
shall
be
substantially
8
in
the
following
form:
9
Vote
“yes”
or
“no”
on
the
following:
Shall
the
city
of
10
_______
levy
for
an
additional
$_______
each
year
for
___
years
11
beginning
next
July
1,
____,
in
excess
of
the
statutory
limits
12
otherwise
applicable
for
the
city
general
fund?
13
d.
The
canvass
shall
be
held
beginning
at
1:00
p.m.
on
14
the
second
day
which
is
not
a
holiday
following
the
special
15
election.
16
e.
Notice
of
the
special
election
shall
be
published
at
17
least
once
in
a
newspaper
as
specified
in
section
362.3
prior
18
to
the
date
of
the
special
election.
The
notice
shall
appear
19
as
early
as
practicable
after
the
city
council
has
voted
to
20
submit
a
proposition
to
the
voters
to
levy
additional
property
21
tax
dollars.
22
3.
The
amount
of
additional
property
tax
dollars
certified
23
under
this
section
shall
not
be
included
in
the
computation
24
of
the
maximum
amount
of
property
tax
dollars
which
may
be
25
certified
and
levied
under
section
384.1.
26
Sec.
39.
Section
384.16,
subsection
1,
paragraph
b,
Code
27
2011,
is
amended
to
read
as
follows:
28
b.
A
budget
must
show
comparisons
between
the
estimated
29
expenditures
in
each
program
in
the
following
year,
the
latest
30
estimated
expenditures
in
each
program
in
the
current
year,
31
and
the
actual
expenditures
in
each
program
from
the
annual
32
report
as
provided
in
section
384.22
,
or
as
corrected
by
a
33
subsequent
audit
report.
Wherever
practicable,
as
provided
in
34
rules
of
the
committee,
a
budget
must
show
comparisons
between
35
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the
levels
of
service
provided
by
each
program
as
estimated
for
1
the
following
year,
and
actual
levels
of
service
provided
by
2
each
program
during
the
two
preceding
years.
For
each
city
3
that
has
established
an
urban
renewal
area,
the
budget
shall
4
include
estimated
and
actual
tax
increment
financing
revenues
5
and
all
estimated
and
actual
expenditures
of
the
revenues,
6
proceeds
from
debt
and
all
estimated
and
actual
expenditures
of
7
the
debt
proceeds,
and
identification
of
any
entity
receiving
8
a
direct
payment
of
taxes
funded
by
tax
increment
financing
9
revenues
and
shall
include
the
total
amount
of
loans,
advances,
10
indebtedness,
or
bonds
outstanding
at
the
close
of
the
most
11
recently
ended
fiscal
year,
which
qualify
for
payment
from
the
12
special
fund
created
in
section
403.19
,
including
interest
13
negotiated
on
such
loans,
advances,
indebtedness,
or
bonds.
14
The
amount
of
loans,
advances,
indebtedness,
or
bonds
shall
15
be
listed
in
the
aggregate
for
each
city
reporting.
The
city
16
finance
committee,
in
consultation
with
the
department
of
17
management
and
the
legislative
services
agency,
shall
determine
18
reporting
criteria
and
shall
prepare
a
form
for
reports
filed
19
with
the
department
pursuant
to
this
section
.
The
department
20
shall
make
the
information
available
by
electronic
means.
21
Sec.
40.
Section
384.19,
Code
2011,
is
amended
by
adding
the
22
following
new
unnumbered
paragraph:
23
NEW
UNNUMBERED
PARAGRAPH
.
For
purposes
of
a
tax
protest
24
filed
under
this
section,
“item”
means
a
budgeted
expenditure,
25
appropriation,
or
cash
reserve
from
a
fund
for
a
service
area,
26
program,
program
element,
or
purpose.
27
Sec.
41.
Section
386.8,
Code
2011,
is
amended
to
read
as
28
follows:
29
386.8
Operation
tax.
30
A
city
may
establish
a
self-supported
improvement
district
31
operation
fund,
and
may
certify
taxes
not
to
exceed
the
32
rate
limitation
as
established
in
the
ordinance
creating
the
33
district,
or
any
amendment
thereto,
each
year
to
be
levied
34
for
the
fund
against
all
of
the
property
in
the
district,
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for
the
purpose
of
paying
the
administrative
expenses
of
1
the
district,
which
may
include
but
are
not
limited
to
2
administrative
personnel
salaries,
a
separate
administrative
3
office,
planning
costs
including
consultation
fees,
engineering
4
fees,
architectural
fees,
and
legal
fees
and
all
other
expenses
5
reasonably
associated
with
the
administration
of
the
district
6
and
the
fulfilling
of
the
purposes
of
the
district.
The
taxes
7
levied
for
this
fund
may
also
be
used
for
the
purpose
of
paying
8
maintenance
expenses
of
improvements
or
self-liquidating
9
improvements
for
a
specified
length
of
time
with
one
or
more
10
options
to
renew
if
such
is
clearly
stated
in
the
petition
11
which
requests
the
council
to
authorize
construction
of
the
12
improvement
or
self-liquidating
improvement,
whether
or
not
13
such
petition
is
combined
with
the
petition
requesting
creation
14
of
a
district.
Parcels
of
property
which
are
assessed
as
15
residential
property
for
property
tax
purposes
are
exempt
from
16
the
tax
levied
under
this
section
except
residential
properties
17
within
a
duly
designated
historic
district.
A
tax
levied
under
18
this
section
is
not
subject
to
the
levy
limitation
in
section
19
384.1
.
20
Sec.
42.
Section
386.9,
Code
2011,
is
amended
to
read
as
21
follows:
22
386.9
Capital
improvement
tax.
23
A
city
may
establish
a
capital
improvement
fund
for
a
24
district
and
may
certify
taxes,
not
to
exceed
the
rate
25
established
by
the
ordinance
creating
the
district,
or
any
26
subsequent
amendment
thereto,
each
year
to
be
levied
for
27
the
fund
against
all
of
the
property
in
the
district,
for
28
the
purpose
of
accumulating
moneys
for
the
financing
or
29
payment
of
a
part
or
all
of
the
costs
of
any
improvement
or
30
self-liquidating
improvement.
However,
parcels
of
property
31
which
are
assessed
as
residential
property
for
property
tax
32
purposes
are
exempt
from
the
tax
levied
under
this
section
33
except
residential
properties
within
a
duly
designated
historic
34
district.
A
tax
levied
under
this
section
is
not
subject
to
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the
levy
limitations
in
section
384.1
or
384.7
.
1
Sec.
43.
REPEAL.
Sections
331.425
and
331.426,
Code
2011,
2
are
repealed.
3
Sec.
44.
APPLICABILITY.
This
division
of
this
Act
applies
4
to
fiscal
years
beginning
on
or
after
July
1,
2013.
5
DIVISION
V
6
BUSINESS
PROPERTY
TAX
CREDIT
7
Sec.
45.
Section
331.512,
Code
2011,
is
amended
by
adding
8
the
following
new
subsection:
9
NEW
SUBSECTION
.
13B.
Carry
out
duties
relating
to
the
10
business
property
tax
credit
as
provided
in
chapter
426C.
11
Sec.
46.
Section
331.559,
Code
2011,
is
amended
by
adding
12
the
following
new
subsection:
13
NEW
SUBSECTION
.
14A.
Carry
out
duties
relating
to
the
14
business
property
tax
credit
as
provided
in
chapter
426C.
15
Sec.
47.
NEW
SECTION
.
426C.1
Definitions.
16
For
the
purposes
of
this
chapter,
unless
the
context
17
otherwise
requires:
18
1.
“Contiguous
parcels”
means
any
of
the
following:
19
a.
Parcels
that
share
a
common
boundary.
20
b.
Parcels
within
the
same
building
or
structure
regardless
21
of
whether
the
parcels
share
a
common
boundary.
22
c.
Permanent
improvements
to
the
land
that
are
situated
23
on
one
or
more
parcels
of
land
that
are
assessed
and
taxed
24
separately
from
the
permanent
improvements
if
the
parcels
of
25
land
upon
which
the
permanent
improvements
are
situated
share
26
a
common
boundary.
27
2.
“Department”
means
the
department
of
revenue.
28
3.
“Fund”
means
the
business
property
tax
credit
fund
29
created
in
section
426C.2.
30
4.
“Parcel”
means
as
defined
in
section
445.1.
31
5.
“Property
unit”
means
contiguous
parcels
all
of
which
32
are
located
within
the
same
county,
with
the
same
property
tax
33
classification,
each
of
which
contains
permanent
improvements,
34
are
owned
by
the
same
person,
and
are
operated
by
that
person
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for
a
common
use
and
purpose.
1
Sec.
48.
NEW
SECTION
.
426C.2
Business
property
tax
credit
2
fund
——
appropriation.
3
1.
A
business
property
tax
credit
fund
is
created
in
the
4
state
treasury
under
the
authority
of
the
department.
For
5
the
fiscal
year
beginning
July
1,
2014,
there
is
appropriated
6
from
the
general
fund
of
the
state
to
the
department
to
be
7
credited
to
the
fund,
the
sum
of
twenty-four
million
dollars
8
to
be
used
for
business
property
tax
credits
authorized
in
9
this
chapter.
For
the
fiscal
year
beginning
July
1,
2015,
10
there
is
appropriated
from
the
general
fund
of
the
state
to
the
11
department
to
be
credited
to
the
fund,
the
sum
of
forty-eight
12
million
dollars.
For
the
fiscal
year
beginning
July
1,
2016,
13
there
is
appropriated
from
the
general
fund
of
the
state
to
the
14
department
to
be
credited
to
the
fund,
the
sum
of
seventy-two
15
million
dollars.
For
the
fiscal
year
beginning
July
1,
2017,
16
there
is
appropriated
from
the
general
fund
of
the
state
to
the
17
department
to
be
credited
to
the
fund,
the
sum
of
ninety-six
18
million
dollars.
For
the
fiscal
year
beginning
July
1,
2018,
19
and
each
fiscal
year
thereafter,
there
is
appropriated
from
the
20
general
fund
of
the
state
to
the
department
to
be
credited
to
21
the
fund,
the
sum
of
one
hundred
twenty
million
dollars.
22
2.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
23
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
24
the
fund.
Moneys
in
the
fund
are
not
subject
to
the
provisions
25
of
section
8.33
and
shall
not
be
transferred,
used,
obligated,
26
appropriated,
or
otherwise
encumbered
except
as
provided
in
27
this
chapter.
28
Sec.
49.
NEW
SECTION
.
426C.3
Claims
for
credit.
29
1.
Each
person
who
wishes
to
claim
the
credit
allowed
30
under
this
chapter
shall
obtain
the
appropriate
forms
from
the
31
assessor
and
file
the
claim
with
the
assessor.
The
director
32
of
revenue
shall
prescribe
suitable
forms
and
instructions
for
33
such
claims,
and
make
such
forms
and
instructions
available
to
34
the
assessors.
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2.
a.
Claims
for
the
business
property
tax
credit
shall
be
1
filed
not
later
than
March
15
preceding
the
fiscal
year
during
2
which
the
taxes
for
which
the
credit
is
claimed
are
due
and
3
payable.
4
b.
A
claim
filed
after
the
deadline
for
filing
claims
shall
5
be
considered
as
a
claim
for
the
following
year.
6
3.
Upon
the
filing
of
a
claim
and
allowance
of
the
credit,
7
the
credit
shall
be
allowed
on
the
parcel
or
property
unit
for
8
successive
years
without
further
filing
as
long
as
the
parcel
9
or
property
unit
satisfies
the
requirements
for
the
credit.
If
10
the
parcel
or
property
unit
owner
ceases
to
qualify
for
the
11
credit
under
this
chapter,
the
owner
shall
provide
written
12
notice
to
the
assessor
by
the
date
for
filing
claims
specified
13
in
subsection
2
following
the
date
on
which
the
parcel
or
14
property
unit
ceases
to
qualify
for
the
credit.
15
4.
When
all
or
a
portion
of
a
parcel
or
property
unit
that
16
is
allowed
a
credit
under
this
chapter
is
sold,
transferred,
17
or
ownership
otherwise
changes,
the
buyer,
transferee,
or
18
new
owner
who
wishes
to
receive
the
credit
shall
refile
the
19
claim
for
credit.
In
addition,
when
a
portion
of
a
parcel
or
20
property
unit
that
is
allowed
a
credit
under
this
chapter
is
21
sold,
transferred,
or
ownership
otherwise
changes,
the
owner
of
22
the
portion
of
the
parcel
or
property
unit
for
which
ownership
23
did
not
change
shall
refile
the
claim
for
credit.
24
5.
The
assessor
shall
remit
the
claims
for
credit
to
the
25
county
auditor
with
the
assessor’s
recommendation
for
allowance
26
or
disallowance.
If
the
assessor
recommends
disallowance
27
of
a
claim,
the
assessor
shall
submit
the
reasons
for
the
28
recommendation,
in
writing,
to
the
county
auditor.
The
county
29
auditor
shall
forward
the
claims
to
the
board
of
supervisors.
30
The
board
shall
allow
or
disallow
the
claims.
31
6.
For
each
claim
and
allowance
of
a
credit
for
a
property
32
unit,
the
county
auditor
shall
calculate
the
average
of
all
33
consolidated
levy
rates
applicable
to
the
several
parcels
34
within
the
property
unit.
All
claims
for
credit
which
have
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been
allowed
by
the
board
of
supervisors,
the
actual
value
of
1
the
permanent
improvements
to
such
parcels
and
property
units
2
applicable
to
the
fiscal
year
for
which
the
credit
is
claimed
3
that
are
subject
to
assessment
and
taxation
prior
to
imposition
4
of
any
applicable
assessment
limitation,
the
consolidated
levy
5
rates
for
such
parcels
and
the
average
consolidated
levy
rates
6
for
such
property
units
applicable
to
the
fiscal
year
for
which
7
the
credit
is
claimed,
and
the
taxing
districts
in
which
the
8
parcel
or
property
unit
is
located,
shall
be
certified
on
or
9
before
June
30,
in
each
year,
by
the
county
auditor
to
the
10
department.
11
7.
The
assessor
shall
maintain
a
permanent
file
of
current
12
business
property
tax
credits.
The
assessor
shall
file
a
13
notice
of
transfer
of
property
for
which
a
credit
has
been
14
allowed
when
notice
is
received
from
the
office
of
the
county
15
recorder,
from
the
person
who
sold
or
transferred
the
property,
16
or
from
the
personal
representative
of
a
deceased
property
17
owner.
The
county
recorder
shall
give
notice
to
the
assessor
18
of
each
transfer
of
title
filed
in
the
recorder’s
office.
The
19
notice
from
the
county
recorder
shall
describe
the
property
20
transferred,
the
name
of
the
person
transferring
title
to
the
21
property,
and
the
name
of
the
person
to
whom
title
to
the
22
property
has
been
transferred.
23
Sec.
50.
NEW
SECTION
.
426C.4
Eligibility
and
amount
of
24
credit.
25
1.
Each
parcel
classified
and
taxed
as
commercial
property,
26
industrial
property,
or
railway
property
under
chapter
434,
27
and
improved
with
permanent
construction,
is
eligible
for
a
28
credit
under
this
chapter.
A
person
may
claim
and
receive
one
29
credit
under
this
chapter
for
each
eligible
parcel
unless
the
30
parcel
is
part
of
a
property
unit.
A
person
may
only
claim
and
31
receive
one
credit
under
this
chapter
for
each
property
unit.
32
A
credit
approved
for
a
property
unit
shall
be
allocated
to
the
33
several
parcels
within
the
property
unit
in
the
proportion
that
34
each
parcel’s
total
amount
of
property
taxes
due
and
payable
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attributable
to
the
permanent
improvements
bears
to
the
total
1
amount
of
property
taxes
due
and
payable
attributable
to
the
2
permanent
improvements
for
the
property
unit.
Only
property
3
units
comprised
of
commercial
property,
comprised
of
industrial
4
property,
or
comprised
of
railway
property
under
chapter
434
5
are
eligible
for
a
credit
under
this
chapter.
6
2.
Using
the
actual
value
of
the
permanent
improvements
7
and
the
consolidated
levy
rate
for
each
parcel
or
the
average
8
consolidated
levy
rate
for
each
property
unit,
as
certified
9
by
the
county
auditor
to
the
department
under
section
426C.3,
10
subsection
6,
the
department
shall
calculate,
for
each
11
fiscal
year,
an
initial
amount
of
actual
value
of
permanent
12
improvements
for
use
in
determining
the
amount
of
the
credit
13
for
each
such
parcel
or
property
unit
so
as
to
provide
the
14
maximum
possible
credit
according
to
the
credit
formula
and
15
limitations
under
subsection
3,
and
to
provide
a
total
dollar
16
amount
of
credits
against
the
taxes
due
and
payable
in
the
17
fiscal
year
equal
to
ninety-eight
percent
of
the
moneys
in
the
18
fund
following
the
deposit
of
the
appropriation
for
the
fiscal
19
year.
20
3.
a.
The
amount
of
the
credit
for
each
parcel
or
property
21
unit
for
which
a
claim
for
credit
under
this
chapter
has
been
22
approved
shall
be
calculated
under
paragraph
“b”
using
the
23
lesser
of
the
initial
amount
of
actual
value
of
the
permanent
24
improvements
determined
by
the
department
under
subsection
25
2,
and
the
actual
value
of
the
permanent
improvements
to
the
26
parcel
or
property
unit
as
certified
by
the
county
auditor
27
under
section
426C.3,
subsection
6.
28
b.
The
amount
of
the
credit
for
each
parcel
or
property
29
unit
for
which
a
claim
for
credit
under
this
chapter
has
30
been
approved
shall
be
equal
to
the
amount
of
actual
value
31
determined
under
paragraph
“a”
multiplied
by
the
difference,
32
stated
as
a
percentage,
between
the
assessment
limitation
33
applicable
to
the
parcel
or
property
unit
under
section
441.21,
34
subsection
5,
and
the
assessment
limitation
applicable
to
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residential
property
under
section
441.21,
subsection
4,
1
divided
by
one
thousand
dollars,
and
then
multiplied
by
the
2
consolidated
levy
rate
or
average
consolidated
levy
rate
for
3
one
thousand
dollars
of
taxable
value
applicable
to
the
parcel
4
or
property
unit
for
the
fiscal
year
for
which
the
credit
5
is
claimed
as
certified
by
the
county
auditor
under
section
6
426C.3,
subsection
6.
7
Sec.
51.
NEW
SECTION
.
426C.5
Payment
to
counties.
8
1.
Annually
the
department
shall
certify
to
the
county
9
auditor
of
each
county
the
amounts
of
the
business
property
10
tax
credits
allowed
in
the
county.
Each
county
auditor
shall
11
then
enter
the
credits
against
the
tax
levied
on
each
eligible
12
parcel
or
property
unit
in
the
county,
designating
on
the
tax
13
lists
the
credit
as
being
from
the
fund.
Each
taxing
district
14
shall
receive
its
share
of
the
business
property
tax
credit
15
allowed
on
each
eligible
parcel
or
property
unit
in
such
taxing
16
district,
in
the
proportion
that
the
levy
made
by
such
taxing
17
district
upon
the
parcel
or
property
unit
bears
to
the
total
18
levy
upon
the
parcel
or
property
unit
by
all
taxing
districts
19
imposing
a
property
tax
in
such
taxing
district.
However,
the
20
several
taxing
districts
shall
not
draw
the
moneys
so
credited
21
until
after
the
semiannual
allocations
have
been
received
by
22
the
county
treasurer,
as
provided
in
this
section.
Each
county
23
treasurer
shall
show
on
each
tax
receipt
the
amount
of
credit
24
received
from
the
fund.
25
2.
The
director
of
the
department
of
administrative
26
services
shall
issue
warrants
on
the
fund
payable
to
the
county
27
treasurers
of
the
several
counties
of
the
state
under
this
28
chapter.
29
3.
The
amount
due
each
county
shall
be
paid
in
two
payments
30
on
November
15
and
March
15
of
each
fiscal
year,
drawn
upon
31
warrants
payable
to
the
respective
county
treasurers.
The
two
32
payments
shall
be
as
nearly
equal
as
possible.
33
Sec.
52.
NEW
SECTION
.
426C.6
Appeals.
34
1.
If
the
board
of
supervisors
disallows
a
claim
for
credit
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under
section
426C.3,
subsection
5,
the
board
of
supervisors
1
shall
send
written
notice,
by
mail,
to
the
claimant
at
the
2
claimant’s
last
known
address.
The
notice
shall
state
the
3
reasons
for
disallowing
the
claim
for
the
credit.
The
board
4
of
supervisors
is
not
required
to
send
notice
that
a
claim
for
5
credit
is
disallowed
if
the
claimant
voluntarily
withdraws
the
6
claim.
Any
person
whose
claim
is
denied
under
the
provisions
7
of
this
chapter
may
appeal
from
the
action
of
the
board
of
8
supervisors
to
the
district
court
of
the
county
in
which
the
9
parcel
or
property
unit
is
located
by
giving
written
notice
10
of
such
appeal
to
the
county
auditor
within
twenty
days
from
11
the
date
of
mailing
of
notice
of
such
action
by
the
board
of
12
supervisors.
13
2.
If
any
claim
for
credit
has
been
denied
by
the
board
14
of
supervisors,
and
such
action
is
subsequently
reversed
on
15
appeal,
the
credit
shall
be
allowed
on
the
applicable
parcel
16
or
property
unit,
and
the
director
of
revenue,
the
county
17
auditor,
and
the
county
treasurer
shall
provide
the
credit
and
18
change
their
books
and
records
accordingly.
In
the
event
the
19
appealing
taxpayer
has
paid
one
or
both
of
the
installments
of
20
the
tax
payable
in
the
year
or
years
in
question,
remittance
21
shall
be
made
to
such
taxpayer
of
the
amount
of
such
credit.
22
The
amount
of
such
credit
awarded
on
appeal
shall
be
allocated
23
and
paid
from
the
balance
remaining
in
the
fund.
24
Sec.
53.
NEW
SECTION
.
426C.7
Audit
——
denial.
25
1.
If
on
the
audit
of
a
credit
provided
under
this
chapter,
26
the
director
of
revenue
determines
the
amount
of
the
credit
27
to
have
been
incorrectly
calculated
or
that
the
credit
is
28
not
allowable,
the
director
shall
recalculate
the
credit
and
29
notify
the
taxpayer
and
the
county
auditor
of
the
recalculation
30
or
denial
and
the
reasons
for
it.
The
director
shall
not
31
adjust
a
credit
after
three
years
from
October
31
of
the
year
32
in
which
the
claim
for
the
credit
was
filed.
If
the
credit
33
has
been
paid,
the
director
shall
give
notification
to
the
34
taxpayer,
the
county
treasurer,
and
the
applicable
assessor
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of
the
recalculation
or
denial
of
the
credit
and
the
county
1
treasurer
shall
proceed
to
collect
the
tax
owed
in
the
same
2
manner
as
other
property
taxes
due
and
payable
are
collected,
3
if
the
parcel
or
property
unit
for
which
the
credit
was
allowed
4
is
still
owned
by
the
taxpayer.
If
the
parcel
or
property
unit
5
for
which
the
credit
was
allowed
is
not
owned
by
the
taxpayer,
6
the
amount
may
be
recovered
from
the
taxpayer
by
assessment
in
7
the
same
manner
that
income
taxes
are
assessed
under
sections
8
422.26
and
422.30.
The
amount
of
such
erroneous
credit,
when
9
collected,
shall
be
deposited
in
the
fund.
10
2.
The
taxpayer
or
board
of
supervisors
may
appeal
any
11
decision
of
the
director
of
revenue
to
the
state
board
of
tax
12
review
pursuant
to
section
421.1,
subsection
5.
The
taxpayer,
13
the
board
of
supervisors,
or
the
director
of
revenue
may
seek
14
judicial
review
of
the
action
of
the
state
board
of
tax
review
15
in
accordance
with
chapter
17A.
16
Sec.
54.
NEW
SECTION
.
426C.8
False
claim
——
penalty.
17
A
person
who
makes
a
false
claim
for
the
purpose
of
obtaining
18
a
credit
provided
for
in
this
chapter
or
who
knowingly
receives
19
the
credit
without
being
legally
entitled
to
it
is
guilty
of
a
20
fraudulent
practice.
The
claim
for
a
credit
of
such
a
person
21
shall
be
disallowed
and
if
the
credit
has
been
paid
the
amount
22
shall
be
recovered
in
the
manner
provided
in
section
426C.7.
23
In
such
cases,
the
director
of
revenue
shall
send
a
notice
of
24
disallowance
of
the
credit.
25
Sec.
55.
NEW
SECTION
.
426C.9
Rules.
26
The
director
of
revenue
shall
prescribe
forms,
instructions,
27
and
rules
pursuant
to
chapter
17A,
as
necessary,
to
carry
out
28
the
purposes
of
this
chapter.
29
Sec.
56.
APPLICABILITY.
This
division
of
this
Act
applies
30
to
property
taxes
due
and
payable
in
fiscal
years
beginning
on
31
or
after
July
1,
2014.
32
DIVISION
VI
33
MULTIRESIDENTIAL
PROPERTY
CLASSIFICATION
34
Sec.
57.
Section
404.2,
subsection
2,
paragraph
f,
Code
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2011,
is
amended
to
read
as
follows:
1
f.
A
statement
specifying
whether
the
revitalization
is
2
applicable
to
none,
some,
or
all
of
the
property
assessed
as
3
residential,
multiresidential,
agricultural,
commercial
,
or
4
industrial
property
within
the
designated
area
or
a
combination
5
thereof
and
whether
the
revitalization
is
for
rehabilitation
6
and
additions
to
existing
buildings
or
new
construction
or
7
both.
If
revitalization
is
made
applicable
only
to
some
8
property
within
an
assessment
classification,
the
definition
of
9
that
subset
of
eligible
property
must
be
by
uniform
criteria
10
which
further
some
planning
objective
identified
in
the
plan.
11
The
city
shall
state
how
long
it
is
estimated
that
the
area
12
shall
remain
a
designated
revitalization
area
which
time
13
shall
be
longer
than
one
year
from
the
date
of
designation
14
and
shall
state
any
plan
by
the
city
to
issue
revenue
bonds
15
for
revitalization
projects
within
the
area.
For
a
county,
a
16
revitalization
area
shall
include
only
property
which
will
be
17
used
as
industrial
property,
commercial
property,
commercial
18
property
consisting
of
three
or
more
separate
living
quarters
19
with
at
least
seventy-five
percent
of
the
space
used
for
20
residential
purposes,
multiresidential
property,
or
residential
21
property.
However,
a
county
shall
not
provide
a
tax
exemption
22
under
this
chapter
to
commercial
property,
commercial
property
23
consisting
of
three
or
more
separate
living
quarters
with
at
24
least
seventy-five
percent
of
the
space
used
for
residential
25
purposes,
multiresidential
property,
or
residential
property
26
which
is
located
within
the
limits
of
a
city.
27
Sec.
58.
Section
404.3,
subsection
4,
Code
2011,
is
amended
28
to
read
as
follows:
29
4.
All
qualified
real
estate
assessed
as
residential
30
property
or
assessed
as
commercial
property,
if
the
commercial
31
property
consists
of
three
or
more
separate
living
quarters
32
with
at
least
seventy-five
percent
of
the
space
used
for
33
residential
purposes,
or
assessed
as
multiresidential
property
34
is
eligible
to
receive
a
one
hundred
percent
exemption
from
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taxation
on
the
actual
value
added
by
the
improvements.
The
1
exemption
is
for
a
period
of
ten
years.
2
Sec.
59.
Section
441.21,
subsection
8,
paragraph
b,
Code
3
Supplement
2011,
is
amended
to
read
as
follows:
4
b.
Notwithstanding
paragraph
“a”
,
any
construction
or
5
installation
of
a
solar
energy
system
on
property
classified
6
as
agricultural,
residential,
commercial,
multiresidential,
or
7
industrial
property
shall
not
increase
the
actual,
assessed
,
8
and
taxable
values
of
the
property
for
five
full
assessment
9
years.
10
Sec.
60.
Section
441.21,
subsections
9
and
10,
Code
11
Supplement
2011,
are
amended
to
read
as
follows:
12
9.
Not
later
than
November
1,
1979,
and
November
1
of
each
13
subsequent
year,
the
director
shall
certify
to
the
county
14
auditor
of
each
county
the
percentages
of
actual
value
at
15
which
residential
property,
agricultural
property,
commercial
16
property,
industrial
property,
multiresidential
property,
17
and
property
valued
by
the
department
of
revenue
pursuant
18
to
chapters
428
,
433
,
434
,
437
,
and
438
in
each
assessing
19
jurisdiction
in
the
county
shall
be
assessed
for
taxation.
The
20
county
auditor
shall
proceed
to
determine
the
assessed
values
21
of
agricultural
property,
residential
property,
commercial
22
property,
industrial
property,
multiresidential
property,
23
and
property
valued
by
the
department
of
revenue
pursuant
24
to
chapters
428
,
433
,
434
,
437
,
and
438
by
applying
such
25
percentages
to
the
current
actual
value
of
such
property,
26
as
reported
to
the
county
auditor
by
the
assessor,
and
the
27
assessed
values
so
determined
shall
be
the
taxable
values
of
28
such
properties
upon
which
the
levy
shall
be
made.
29
10.
The
percentage
of
actual
value
computed
by
the
30
director
for
agricultural
property,
residential
property,
31
commercial
property,
industrial
property
,
multiresidential
32
property,
and
property
valued
by
the
department
of
revenue
33
pursuant
to
chapters
428
,
433
,
434
,
437
,
and
438
and
used
to
34
determine
assessed
values
of
those
classes
of
property
does
not
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constitute
a
rule
as
defined
in
section
17A.2,
subsection
11
.
1
Sec.
61.
Section
441.21,
Code
Supplement
2011,
is
amended
by
2
adding
the
following
new
subsection:
3
NEW
SUBSECTION
.
13.
a.
Beginning
with
valuations
4
established
on
or
after
January
1,
2013,
mobile
home
parks,
5
manufactured
home
communities,
land-leased
communities,
6
assisted
living
facilities,
and
that
portion
of
a
building
7
that
is
used
for
human
habitation
and
a
proportionate
share
of
8
the
land
upon
which
the
building
is
situated,
even
if
the
use
9
for
human
habitation
is
not
the
primary
use
of
the
building,
10
and
regardless
of
the
number
of
dwelling
units
located
in
11
the
building,
and
not
otherwise
classified
as
residential
12
property,
shall
be
valued
as
a
separate
class
of
property
13
known
as
multiresidential
property
and,
excluding
properties
14
referred
to
in
section
427A.1,
subsection
8,
shall
be
assessed
15
at
a
percentage
of
its
actual
value,
as
determined
in
this
16
subsection.
For
valuations
established
for
the
assessment
year
17
beginning
January
1,
2013,
the
percentage
of
actual
value
as
18
equalized
by
the
director
of
revenue
as
provided
in
section
19
441.49
at
which
multiresidential
property
shall
be
assessed
20
shall
be
ninety
percent.
For
valuations
established
for
the
21
assessment
year
beginning
January
1,
2014,
the
percentage
22
of
actual
value
as
equalized
by
the
director
of
revenue
as
23
provided
in
section
441.49
at
which
multiresidential
property
24
shall
be
assessed
shall
be
eighty
percent.
For
valuations
25
established
for
the
assessment
year
beginning
January
1,
2015,
26
the
percentage
of
actual
value
as
equalized
by
the
director
of
27
revenue
as
provided
in
section
441.49
at
which
multiresidential
28
property
shall
be
assessed
shall
be
seventy
percent.
For
29
valuations
established
for
the
assessment
year
beginning
30
January
1,
2016,
the
percentage
of
actual
value
as
equalized
by
31
the
director
of
revenue
as
provided
in
section
441.49
at
which
32
multiresidential
property
shall
be
assessed
shall
be
sixty
33
percent.
For
valuations
established
for
the
assessment
year
34
beginning
January
1,
2017,
and
each
assessment
year
thereafter,
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the
percentage
of
actual
value
as
equalized
by
the
director
of
1
revenue
as
provided
in
section
441.49
at
which
multiresidential
2
property
shall
be
assessed
shall
be
equal
to
the
percentage
of
3
actual
value
at
which
property
assessed
as
residential
property
4
is
assessed
under
subsection
4
for
the
same
assessment
year.
5
b.
Accordingly,
the
assessor
may
assign
more
than
one
6
classification
to
a
parcel
of
property
that,
in
part,
satisfies
7
the
requirements
of
this
subsection.
In
no
case,
however,
8
shall
a
hotel,
motel,
inn,
or
other
building
where
rooms
or
9
dwelling
units
are
usually
rented
for
less
than
one
month
be
10
classified
as
multiresidential
property
under
this
subsection.
11
c.
As
used
in
this
subsection:
12
(1)
“Assisted
living
facility”
means
property
for
providing
13
assisted
living
as
defined
in
section
231C.2.
14
(2)
“Dwelling
unit”
means
an
apartment,
group
of
rooms,
15
or
single
room
which
is
occupied
as
separate
living
quarters
16
or,
if
vacant,
is
intended
for
occupancy
as
separate
living
17
quarters,
in
which
a
tenant
can
live
and
sleep
separately
from
18
any
other
persons
in
the
building.
19
(3)
“Land-leased
community”
means
the
same
as
defined
in
20
sections
335.30A
and
414.28A.
21
(4)
“Manufactured
home
community”
means
the
same
as
a
22
land-leased
community.
23
(5)
“Mobile
home
park”
means
the
same
as
defined
in
section
24
435.1.
25
Sec.
62.
Section
558.46,
subsection
5,
Code
2011,
is
amended
26
to
read
as
follows:
27
5.
For
the
purposes
of
this
section
,
“residential
property”
28
includes
commercial
multiresidential
property
as
defined
in
29
section
441.21,
subsection
13,
consisting
of
three
or
more
30
separate
living
quarters
with
at
least
seventy-five
percent
of
31
the
space
used
for
residential
purposes.
32
Sec.
63.
APPLICABILITY.
This
division
of
this
Act
applies
33
to
assessment
years
beginning
on
or
after
January
1,
2013.
34
EXPLANATION
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This
bill
relates
to
taxation
and
local
government
budgets
1
by
providing
for
an
increase
in
the
amount
of
the
earned
2
income
tax
credit,
establishing
and
modifying
property
3
assessment
limitations,
providing
for
certain
property
tax
4
replacement
payments,
modifying
the
assessment
and
taxation
5
of
telecommunications
company
property,
establishing
budget
6
limitations
for
counties
and
cities,
modifying
certain
7
reporting
requirements,
establishing
a
property
tax
credit
8
for
certain
commercial,
industrial,
and
railway
property,
and
9
classifying
certain
property
as
multiresidential
property.
10
Division
I
of
the
bill
increases
the
amount
of
the
state
11
earned
income
tax
credit.
Currently,
the
credit
is
equal
to
12
7
percent
of
the
amount
of
a
taxpayer’s
federal
earned
income
13
tax
credit.
The
bill
increases
the
amount
of
the
credit
to
10
14
percent.
15
Division
I
of
the
bill
applies
retroactively
to
January
1,
16
2012,
for
tax
years
beginning
on
or
after
that
date.
17
Division
II
of
the
bill
changes
the
property
tax
assessment
18
limitation
percentage
for
residential
property
and
agricultural
19
property
from
4
percent
to
3
percent
for
assessment
years
20
beginning
on
or
after
January
1,
2013.
21
Division
II
of
the
bill
strikes
the
methodology
in
Code
22
section
441.21(5)
currently
used
to
determine
the
percentage
23
of
actual
value
at
which
commercial
property
and
industrial
24
property
are
assessed
for
property
tax
purposes.
The
bill
25
provides
that
for
valuations
established
for
the
assessment
26
year
beginning
January
1,
2013,
the
percentage
of
actual
value
27
at
which
commercial
and
industrial
property
are
assessed
is
28
98
percent.
For
the
assessment
year
beginning
January
1,
29
2014,
the
percentage
of
actual
value
at
which
commercial
and
30
industrial
property
are
assessed
is
96
percent.
For
the
31
assessment
year
beginning
January
1,
2015,
the
percentage
of
32
actual
value
at
which
commercial
and
industrial
property
are
33
assessed
is
94
percent.
For
the
assessment
year
beginning
34
January
1,
2016,
the
percentage
of
actual
value
at
which
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commercial
and
industrial
property
are
assessed
is
92
percent.
1
For
assessment
years
beginning
on
or
after
January
1,
2017,
the
2
percentage
of
actual
value
at
which
commercial
and
industrial
3
property
are
assessed
is
90
percent.
4
Division
II
of
the
bill
also
modifies
the
provision
relating
5
to
the
calculation
of
the
assessment
limitation
for
property
6
valued
by
the
department
of
revenue
pursuant
to
Code
chapters
7
428,
433,
437,
and
438
by
specifying
that
for
assessment
years
8
beginning
on
or
after
January
1,
2013,
but
before
January
1,
9
2019,
such
assessment
limitation
shall
be
calculated
using
10
property
valuations
for
the
applicable
assessment
years
11
that
include
the
total
value
of
specified
telecommunications
12
company
property
exempted
from
taxation
under
new
Code
section
13
433.4(2)(b),
if
enacted
in
division
III
of
the
bill.
14
Division
II
provides
that
for
valuations
established
on
15
or
after
January
1,
2013,
property
valued
by
the
department
16
of
revenue
pursuant
to
Code
chapter
434
(railway
property)
17
is
assessed
at
a
percentage
of
its
actual
value
equal
to
the
18
percentage
of
actual
value
at
which
commercial
property
is
19
assessed
for
the
same
assessment
year.
20
Division
II
creates
a
commercial
and
industrial
property
tax
21
replacement
fund
in
new
Code
section
441.21A
under
the
control
22
of
the
department
of
revenue.
For
the
fiscal
year
beginning
23
July
1,
2014,
there
is
appropriated
from
the
general
fund
of
24
the
state
to
the
department
of
revenue
to
be
credited
to
the
25
fund
an
amount
necessary
to
pay
all
commercial
and
industrial
26
property
tax
replacement
claims
for
the
fiscal
year,
not
to
27
exceed
$28
million.
For
the
fiscal
year
beginning
July
1,
28
2015,
there
is
appropriated
from
the
general
fund
of
the
state
29
to
the
department
of
revenue
to
be
credited
to
the
fund
an
30
amount
necessary
to
pay
all
commercial
and
industrial
property
31
tax
replacement
claims
for
the
fiscal
year,
not
to
exceed
$56
32
million.
For
the
fiscal
year
beginning
July
1,
2016,
there
33
is
appropriated
from
the
general
fund
of
the
state
to
the
34
department
of
revenue
to
be
credited
to
the
fund
an
amount
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necessary
to
pay
all
commercial
and
industrial
property
tax
1
replacement
claims
for
the
fiscal
year,
not
to
exceed
$84
2
million.
For
the
fiscal
year
beginning
July
1,
2017,
there
3
is
appropriated
from
the
general
fund
of
the
state
to
the
4
department
of
revenue
to
be
credited
to
the
fund
an
amount
5
necessary
to
pay
all
commercial
and
industrial
property
tax
6
replacement
claims
for
the
fiscal
year,
not
to
exceed
$112
7
million.
For
the
fiscal
year
beginning
July
1,
2018,
and
each
8
fiscal
year
thereafter,
there
is
appropriated
from
the
general
9
fund
of
the
state
to
the
department
of
revenue
to
be
credited
10
to
the
fund
an
amount
necessary
to
pay
all
commercial
and
11
industrial
property
tax
replacement
claims
for
the
fiscal
year,
12
not
to
exceed
$140
million.
13
Division
II
provides
that
beginning
with
the
fiscal
year
14
starting
July
1,
2014,
moneys
appropriated
to
the
commercial
15
and
industrial
property
tax
replacement
fund
are
for
the
16
payment
of
commercial
and
industrial
property
tax
replacement
17
claims.
The
bill
provides
that
if
an
amount
appropriated
for
18
a
fiscal
year
is
insufficient
to
pay
all
replacement
claims,
19
the
director
of
revenue
shall
prorate
the
disbursements
from
20
the
fund
to
the
county
treasurers
and
shall
notify
the
county
21
auditors
of
the
pro
rata
percentage
on
or
before
September
30.
22
Any
unspent
balance
as
of
June
30
of
each
year
shall
revert
to
23
the
general
fund
of
the
state
as
provided
in
Code
section
8.33.
24
Division
II
requires
the
assessor
to
determine,
on
or
25
before
July
1
of
each
fiscal
year
beginning
on
or
after
July
26
1,
2014,
the
total
assessed
value
of
all
commercial
property,
27
industrial
property,
and
property
assessed
by
the
department
28
of
revenue
under
Code
chapter
434
(railway)
for
taxes
due
29
and
payable
in
that
fiscal
year
and
the
total
assessed
value
30
of
all
such
property
assessed
as
of
January
1,
2012,
and
to
31
report
those
valuations
to
the
county
auditor.
On
or
before
32
September
1,
the
county
auditor
prepares
a
statement,
based
33
upon
the
report
listing
for
each
taxing
district
in
the
county
34
the
assessed
values
of
such
property
located
in
the
taxing
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district
for
specified
assessment
years,
the
tax
levy
rate
for
1
each
taxing
district,
and
the
property
tax
replacement
claim
2
for
each
taxing
district.
The
replacement
claim
is
equal
to
3
the
difference
between
the
assessed
valuation
of
all
such
4
property
located
in
the
taxing
district
and
assessed
for
the
5
applicable
assessment
year
and
the
total
assessed
value
of
all
6
such
property
located
in
the
taxing
district
and
assessed
as
7
of
January
1,
2012,
multiplied
by
the
tax
rate
specified
for
8
the
taxing
district.
If
the
January
1,
2012,
assessment
amount
9
is
less,
there
is
no
replacement
claim
for
the
taxing
district
10
for
that
year.
11
Replacement
claims
are
paid
to
each
county
treasurer
in
12
equal
installments
in
September
and
March
of
each
year.
The
13
county
treasurer
apportions
the
replacement
claim
payments
14
among
the
eligible
taxing
districts
in
the
county.
15
Division
II
of
the
bill
defines
a
tax
increment
financing
16
district
in
an
urban
renewal
area
as
a
taxing
district
for
17
purposes
of
allocation
of
replacement
moneys
and
provides
for
18
the
method
of
allocation
in
those
districts.
19
Division
II,
pursuant
to
Code
section
4.13,
does
not
affect
20
the
application
of
prior
provisions
of
Code
section
441.21
to
21
assessment
years
beginning
before
January
1,
2013.
22
Division
II
of
the
bill
applies
to
assessment
years
23
beginning
on
or
after
January
1,
2013.
24
Division
III
of
the
bill
relates
to
the
manner
in
which
the
25
property
of
telecommunications
companies
is
assessed
and
taxed.
26
The
assessment
provisions
of
current
Code
section
27
433.4
provide
that
in
ascertaining
the
actual
value
of
28
telecommunications
company
property
the
director
of
revenue
29
shall
include
all
property
of
every
kind
and
character
30
whatsoever,
real,
personal,
or
mixed,
used
by
the
company
in
31
the
transaction
of
telegraph
and
telephone
business.
32
Division
III
of
the
bill
strikes
the
provisions
that
33
included
all
kinds
and
character
of
property
in
the
34
determination
of
actual
value
of
a
company’s
property.
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Instead,
the
bill
provides
that
for
assessment
years
beginning
1
on
or
after
January
1,
2013,
a
company’s
property,
excluding
2
central
office
equipment,
transmission
equipment,
qualified
3
telephone
company
property,
and
intangible
property,
all
4
as
defined
in
the
bill,
shall
be
subject
to
assessment
and
5
taxation
under
Code
chapter
433
by
the
director
of
revenue
in
6
the
same
manner
as
property
assessed
and
taxed
as
commercial
7
property.
The
bill
provides,
however,
that
for
assessment
8
years
beginning
on
or
after
January
1,
2013,
but
before
January
9
1,
2018,
the
director
of
revenue
shall
include
as
part
of
the
10
actual
value
so
determined
for
that
assessment
year
a
specified
11
amount
of
actual
value
of
the
company’s
qualified
telephone
12
company
property.
The
bill
defines
“qualified
telephone
13
company
property”
as
telephone
wire,
telephone
cable,
fiber
14
optic
cable,
conduit
systems,
poles,
or
other
equipment
owned
15
or
leased
by
a
company
and
used
by
the
company
to
transmit
16
sound
or
data.
17
Division
III
of
the
bill
strikes
a
provision
in
Code
section
18
476.1D
that
allowed
certain
specified
long-distance
telephone
19
company
property
to
be
assessed
for
taxation
as
commercial
20
property
by
the
local
assessor.
21
Except
for
the
section
of
division
III
of
the
bill
amending
22
Code
section
476.1D,
division
III
of
the
bill
takes
effect
23
July
1,
2012,
and
applies
to
assessment
years
beginning
on
or
24
after
January
1,
2013.
The
section
of
division
III
of
the
bill
25
amending
Code
section
476.1D
takes
effect
July
1,
2017,
and
26
applies
to
assessment
years
beginning
on
or
after
January
1,
27
2018.
28
Division
III
of
the
bill
provides
that
the
provisions
in
29
Code
section
25B.7,
relating
to
the
obligation
of
the
state
30
to
reimburse
local
jurisdictions
for
property
tax
credits
and
31
exemptions,
does
not
apply
to
the
exemption
in
division
III
of
32
the
bill.
33
Division
III,
pursuant
to
Code
section
4.13,
does
not
34
affect
the
application
of
Code
chapter
433
to
assessment
years
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beginning
before
January
1,
2013.
1
Division
IV
of
the
bill
removes
the
property
tax
levy
rate
2
limitations
on
the
general
and
rural
funds
for
counties
and
on
3
the
general
fund
for
cities
and
substitutes
a
limitation
on
the
4
maximum
amount
of
property
tax
dollars
that
may
be
certified
5
for
expenditure
by
a
county
or
city
for
fiscal
years
beginning
6
on
or
after
July
1,
2013.
For
the
fiscal
year
beginning
July
7
1,
2013,
and
subsequent
fiscal
years,
the
maximum
amount
of
8
property
tax
dollars
which
may
be
certified
for
levy
shall
be
9
an
amount
equal
to
the
sum
of
the
current
fiscal
year’s
total
10
property
tax
dollars
certified
by
the
county
multiplied
by
the
11
annual
growth
factor,
as
defined
in
the
bill,
and
the
amount
of
12
net
new
valuation
taxes,
as
defined
in
the
bill.
13
Division
IV
also
allows
counties
and
cities
to
certify
14
additions
to
the
maximum
amount
of
property
tax
dollars
to
be
15
levied
for
a
period
of
time
not
to
exceed
two
years
if
the
16
proposition
has
been
approved
at
a
special
election.
The
bill
17
specifies
the
notice
and
election
requirements
for
such
a
18
proposition.
The
bill
specifies
that
such
amounts
approved
at
19
special
election
are
not
to
be
included
in
the
computation
of
20
the
maximum
amount
of
property
tax
dollars
for
future
budget
21
years.
22
Division
IV
of
the
bill
specifies
certain
requirements
23
for
ending
fund
balances
for
counties
and
cities.
The
bill
24
provides
that
budgeted
ending
fund
balances
in
certain
25
specified
funds
for
a
budget
year
in
excess
of
25
percent
26
of
budgeted
expenditures
shall
be
explicitly
reserved
or
27
designated
for
a
specific
purpose.
28
Under
the
bill,
counties
and
cities
are
encouraged,
but
not
29
required,
to
reduce
ending
fund
balances
for
the
budget
year
30
to
an
amount
equal
to
approximately
25
percent
of
budgeted
31
expenditures
and
certain
transfers
for
that
budget
year
32
unless
a
decision
is
certified
by
the
state
appeal
board
33
ordering
a
reduction
in
the
ending
fund
balance
of
any
of
those
34
funds.
The
county
or
city,
as
applicable,
has
the
burden
of
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proving
that
the
budgeted
balances
in
excess
of
25
percent
1
are
reasonably
likely
to
be
appropriated
for
the
explicitly
2
reserved
or
designated
specific
purpose.
3
Division
IV
of
the
bill
also
allows
for
additional
property
4
taxes
to
be
levied
in
certain
fiscal
years
for
those
counties
5
or
cities
that
have,
as
of
June
30,
2012,
reduced
their
6
actual
ending
fund
balance
to
less
than
25
percent
of
actual
7
expenditures.
Such
additional
property
tax
dollars
authorized
8
but
not
levied
may
be
carried
forward
as
unused
ending
9
fund
balance
taxing
authority
until
and
for
the
fiscal
year
10
beginning
July
1,
2018.
However,
the
amount
carried
forward
11
shall
not
exceed
25
percent
of
the
maximum
amount
of
property
12
tax
dollars
available
in
the
current
fiscal
year.
The
amount
13
of
such
additional
property
taxes
levied
shall
not,
however,
be
14
included
in
the
computation
of
the
maximum
amount
of
property
15
tax
dollars
which
may
be
certified
and
levied
in
future
budget
16
years.
17
Division
IV
also
makes
conforming
amendments
to
other
18
provisions
of
the
Code.
19
Division
IV
strikes
language
relating
to
the
duties
of
the
20
county
finance
committee
and
the
city
finance
committee
to
21
determine
criteria
for
reporting
of
certain
indebtedness
and
22
strikes
language
requiring
the
department
of
management
to
make
23
such
information
available
by
electronic
means.
24
Division
IV
applies
to
fiscal
years
beginning
on
or
after
25
July
1,
2013.
26
Division
V
of
the
bill
creates
a
business
property
tax
credit
27
under
new
Code
chapter
426C
for
property
taxes
due
and
payable
28
in
fiscal
years
beginning
on
or
after
July
1,
2014.
29
Division
V
of
the
bill
establishes
a
business
property
30
tax
credit
fund.
For
the
fiscal
year
beginning
July
1,
31
2014,
the
bill
appropriates
from
the
general
fund
of
the
32
state
to
the
department
of
revenue
for
deposit
in
the
fund,
33
$24
million.
For
the
fiscal
year
beginning
July
1,
2015,
34
the
bill
appropriates
from
the
general
fund
of
the
state
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to
the
department
of
revenue
for
deposit
in
the
fund,
$48
1
million.
For
the
fiscal
year
beginning
July
1,
2016,
the
2
bill
appropriates
from
the
general
fund
of
the
state
to
3
the
department
of
revenue
to
be
credited
to
the
fund,
$72
4
million.
For
the
fiscal
year
beginning
July
1,
2017,
the
5
bill
appropriates
from
the
general
fund
of
the
state
to
the
6
department
of
revenue
to
be
credited
to
the
fund,
$96
million.
7
For
the
fiscal
year
beginning
July
1,
2018,
and
each
fiscal
8
year
thereafter,
the
bill
appropriates
from
the
general
fund
9
of
the
state
to
the
department
of
revenue
to
be
credited
to
the
10
fund,
$120
million.
Under
the
bill,
interest
or
earnings
on
11
moneys
deposited
in
the
fund
are
credited
to
the
fund,
moneys
12
in
the
fund
are
not
subject
to
the
provisions
of
Code
section
13
8.33,
and
moneys
in
the
fund
shall
not
be
transferred,
used,
14
obligated,
appropriated,
or
otherwise
encumbered
except
as
15
provided
in
new
Code
chapter
426C.
16
Division
V
of
the
bill
provides
that
each
person
who
wishes
17
to
claim
a
business
property
tax
credit
shall
obtain
the
18
appropriate
forms
from
the
assessor
and
file
the
claim
with
the
19
assessor.
The
director
of
revenue
is
required
to
prescribe
20
suitable
forms
and
instructions
for
such
claims,
and
make
21
such
forms
and
instructions
available
to
the
assessors.
The
22
assessor
is
required
to
remit
the
claims
for
credit
to
the
23
county
auditor
with
the
assessor’s
recommendation
for
allowance
24
or
disallowance.
If
the
assessor
recommends
disallowance
25
of
a
claim,
the
assessor
shall
submit
the
reasons
for
the
26
recommendation,
in
writing,
to
the
county
auditor.
The
county
27
auditor
then
forwards
the
claims
to
the
board
of
supervisors.
28
The
board
is
required
to
allow
or
disallow
the
claims.
If
29
the
board
of
supervisors
disallows
a
claim
for
a
credit,
the
30
board
of
supervisors
is
required
to
send
written
notice,
by
31
mail,
to
the
claimant
and
the
notice
must
state
the
reasons
for
32
disallowing
the
claim
for
the
credit.
Any
person
whose
claim
33
for
credit
is
denied
may
appeal
from
the
action
of
the
board
of
34
supervisors
to
the
district
court
of
the
county
in
which
the
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parcel
or
property
unit
is
located.
1
Claims
for
the
business
property
tax
credit
must
be
filed
2
not
later
than
March
15
preceding
the
fiscal
year
during
which
3
the
property
taxes
for
which
the
credit
is
claimed
are
due
and
4
payable.
5
Upon
the
filing
of
a
claim
and
allowance
of
a
business
6
property
tax
credit,
the
credit
is
allowed
on
the
parcel
or
7
property
unit
for
successive
years
without
further
filing
as
8
long
as
the
parcel
or
property
unit
satisfies
the
requirements
9
for
the
credit.
The
owner
is
required
to
provide
written
10
notice
to
the
assessor
when
the
parcel
or
property
unit
ceases
11
to
qualify
for
the
credit.
The
bill
requires
the
assessor
to
12
maintain
a
permanent
file
of
current
credits
and
also
specifies
13
certain
requirements
for
parcel
or
property
unit
owners,
14
assessors,
and
county
recorders
when
all
or
a
portion
of
such
15
parcels
or
property
units
are
sold,
transferred,
or
ownership
16
otherwise
changes.
17
Under
division
V
of
the
bill,
each
parcel
classified
and
18
taxed
as
commercial
property,
industrial
property,
or
railway
19
property
under
Code
chapter
434,
and
improved
with
permanent
20
construction,
is
eligible
for
a
business
property
tax
credit.
21
A
person
may
claim
and
receive
one
credit
for
each
eligible
22
parcel
unless
the
parcel
is
part
of
a
property
unit.
The
23
bill
defines
“property
unit”
to
mean
contiguous
parcels
24
located
within
the
same
county,
with
the
same
property
tax
25
classification,
each
containing
permanent
improvements,
owned
26
by
the
same
person,
and
operated
by
that
person
for
a
common
27
use
and
purpose.
A
person
may
only
claim
and
receive
one
28
tax
credit
for
each
property
unit.
A
credit
approved
for
a
29
property
unit
is
allocated
to
the
several
parcels
within
the
30
property
unit
in
the
proportion
that
each
parcel’s
property
tax
31
liability
on
permanent
improvements
bears
to
the
total
property
32
tax
liability
on
permanent
improvements
for
the
property
unit.
33
Only
those
property
units
comprised
of
commercial
property,
34
comprised
of
industrial
property,
or
comprised
of
railway
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property
under
Code
chapter
434
are
eligible
for
a
credit.
1
Division
V
of
the
bill
provides
that
all
claims
for
credit
2
which
have
been
allowed,
the
actual
value
of
the
permanent
3
improvements
to
the
applicable
parcels
and
property
units
that
4
are
subject
to
assessment
and
taxation,
the
consolidated
levy
5
rates
or
average
consolidated
levy
rates
for
such
parcels
and
6
property
units
applicable
to
the
fiscal
year
for
which
the
7
credit
is
claimed,
and
the
taxing
districts
in
which
each
8
parcel
or
property
unit
is
located,
shall
be
certified
on
or
9
before
June
30,
in
each
year,
by
the
county
auditor
to
the
10
department
of
revenue.
11
Division
V
of
the
bill
provides
that
using
the
actual
value
12
of
the
permanent
improvements
and
the
consolidated
levy
rate
13
or
average
consolidated
levy
rate
for
each
parcel
or
property
14
unit,
as
certified
by
the
county
auditor,
the
department
15
is
required
to
calculate,
for
each
fiscal
year,
an
initial
16
amount
of
actual
value
of
permanent
improvements
for
use
17
in
determining
the
amount
of
the
credit
for
each
approved
18
parcel
or
property
unit
so
as
to
provide
the
maximum
possible
19
credit
according
to
the
credit
formula
and
limitations
in
the
20
bill,
and
to
provide
a
total
dollar
amount
of
credits
in
the
21
fiscal
year
equal
to
98
percent
of
the
moneys
in
the
business
22
property
tax
credit
fund
following
the
deposit
of
the
total
23
appropriation
for
the
fiscal
year.
24
The
credit
for
each
parcel
or
property
unit
for
which
a
25
claim
for
a
business
property
tax
credit
has
been
approved
26
is
calculated
using
the
lesser
of
the
initial
amount
of
27
actual
value
of
the
permanent
improvements
determined
by
28
the
department
for
the
fiscal
year
and
the
actual
value
of
29
permanent
improvements
to
the
parcel
or
property
unit
as
30
certified
to
the
department
of
revenue.
The
amount
of
the
31
credit
for
each
parcel
or
property
unit
is
then
calculated
by
32
multiplying
the
lesser
amount
of
actual
value,
so
determined,
33
by
the
difference,
stated
as
a
percentage,
between
the
34
assessment
limitation
applicable
to
the
parcel
or
property
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unit
under
Code
section
441.21(5)
(commercial,
industrial,
and
1
railway
property
tax
rollback)
and
the
assessment
limitation
2
applicable
to
residential
property
under
Code
section
441.21(4)
3
(residential
property
tax
rollback),
divided
by
$1,000,
and
4
then
multiplied
by
the
consolidated
levy
rate
or
average
5
consolidated
levy
rate
for
$1,000
of
taxable
value
applicable
6
to
the
parcel
or
property
unit
for
the
fiscal
year
for
which
7
the
credit
is
claimed.
8
Division
V
of
the
bill
specifies
the
procedures
for
the
9
payment
of
the
amount
of
the
business
property
tax
credits
10
to
the
county
treasurers
and
the
resulting
apportionment
to
11
the
applicable
taxing
districts.
The
bill
also
specifies
the
12
requirements
and
procedures
for
an
appeal
of
a
denial
of
a
13
claim
for
credit,
specifies
the
requirements
and
procedures
14
for
an
audit
of
a
business
property
tax
credit
allowed,
and
15
specifies
requirements
relating
to
the
collection
of
property
16
taxes
due
as
the
result
of
an
incorrectly
calculated
or
17
improperly
approved
credit.
18
Division
V
of
the
bill
provides
that
a
person
who
makes
a
19
false
claim
for
the
purpose
of
obtaining
a
business
property
20
tax
credit
or
who
knowingly
receives
the
credit
without
being
21
legally
entitled
to
it
is
guilty
of
a
fraudulent
practice
and
22
is
subject
to
a
criminal
penalty.
23
Division
V
of
the
bill
requires
the
director
of
revenue
24
to
prescribe
forms,
instructions,
and
rules
pursuant
to
Code
25
chapter
17A,
as
necessary,
to
carry
out
the
purposes
of
new
26
Code
chapter
426C.
27
Division
V
of
the
bill
applies
to
property
taxes
due
and
28
payable
in
fiscal
years
beginning
on
or
after
July
1,
2014.
29
Division
VI
of
the
bill
provides
that
beginning
with
30
valuations
established
for
property
tax
purposes
on
or
31
after
January
1,
2013,
mobile
home
parks,
manufactured
32
home
communities,
land-leased
communities,
assisted
living
33
facilities,
and
that
portion
of
a
building
that
is
used
for
34
human
habitation
and
a
proportionate
share
of
the
land
upon
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which
the
building
is
situated,
even
if
the
use
for
human
1
habitation
is
not
the
primary
use
of
the
building
or
structure,
2
and
regardless
of
the
number
of
dwelling
units
located
in
3
the
building,
and
not
otherwise
classified
as
residential
4
property,
shall
be
valued
as
a
separate
class
of
property
known
5
as
multiresidential
property.
For
valuations
established
for
6
the
assessment
year
beginning
January
1,
2013,
the
percentage
7
of
actual
value
at
which
multiresidential
property
shall
be
8
assessed
shall
be
90
percent.
For
valuations
established
for
9
the
assessment
year
beginning
January
1,
2014,
the
percentage
10
of
actual
value
at
which
multiresidential
property
shall
be
11
assessed
shall
be
80
percent.
For
valuations
established
for
12
the
assessment
year
beginning
January
1,
2015,
the
percentage
13
of
actual
value
at
which
multiresidential
property
shall
be
14
assessed
shall
be
70
percent.
For
valuations
established
for
15
the
assessment
year
beginning
January
1,
2016,
the
percentage
16
of
actual
value
at
which
multiresidential
property
shall
be
17
assessed
shall
be
60
percent.
For
valuations
established
18
for
the
assessment
year
beginning
January
1,
2017,
and
each
19
assessment
year
thereafter,
the
percentage
of
actual
value
20
at
which
multiresidential
property
shall
be
assessed
shall
21
be
equal
to
the
percentage
of
actual
value
at
which
property
22
assessed
as
residential
property
is
assessed
for
the
same
23
assessment
year.
An
assessor
may
assign
more
than
one
24
classification
to
a
parcel
of
property.
The
bill
provides,
25
however,
that
a
hotel,
motel,
inn,
or
other
building
where
26
rooms
or
dwelling
units
are
usually
rented
for
less
than
one
27
month
shall
not
be
classified
as
multiresidential
property.
28
Division
VI
of
the
bill
makes
changes
to
Iowa
Code
chapters
29
404,
441,
and
558
to
correspond
to
the
establishment
of
the
30
multiresidential
property
classification
for
property
tax
31
purposes.
32
Division
VI
of
the
bill
applies
to
assessment
years
33
beginning
on
or
after
January
1,
2013.
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