House Study Bill 240 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR’S BILL) A BILL FOR An Act relating to state and local government finances by 1 increasing the regular program foundation base, establishing 2 property tax levy limits for cities and counties, 3 establishing certain property assessment limitations, and 4 including applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2786XL (4) 84 md/sc
S.F. _____ H.F. _____ DIVISION I 1 EDUCATION FINANCE 2 Section 1. Section 257.1, subsection 2, paragraph b, Code 3 2011, is amended by striking the paragraph and inserting in 4 lieu thereof the following: 5 b. (1) The regular program foundation base per pupil is the 6 following: 7 (a) For the budget year commencing July 1, 2011, the 8 regular program foundation base per pupil is eighty-seven and 9 five-tenths percent of the regular program state cost per 10 pupil. 11 (b) For the budget year commencing July 1, 2012, the 12 regular program foundation base per pupil is eighty-nine and 13 twenty-eight hundredths percent of the regular program state 14 cost per pupil. 15 (c) For the budget year commencing July 1, 2013, the 16 regular program foundation base per pupil is ninety-one and six 17 hundredths percent of the regular program state cost per pupil. 18 (d) For the budget year commencing July 1, 2014, the regular 19 program foundation base per pupil is ninety-two and eighty-four 20 hundredths percent of the regular program state cost per pupil. 21 (e) For the budget year commencing July 1, 2015, the regular 22 program foundation base per pupil is ninety-four and sixty-two 23 hundredths percent of the regular program state cost per pupil. 24 (f) For the budget year commencing July 1, 2016, the regular 25 program foundation base per pupil is ninety-six and forty 26 hundredths percent of the regular program state cost per pupil. 27 (g) For the budget year commencing July 1, 2017, the regular 28 program foundation base per pupil is ninety-eight and eighteen 29 hundredths percent of the regular program state cost per pupil. 30 (h) For the budget year commencing July 1, 2018, and 31 succeeding budget years, the regular program foundation base 32 per pupil is one hundred percent of the regular program state 33 cost per pupil. 34 (2) For each budget year, the special education support 35 -1- LSB 2786XL (4) 84 md/sc 1/ 29
S.F. _____ H.F. _____ services foundation base is seventy-nine percent of the special 1 education support services state cost per pupil. The combined 2 foundation base is the sum of the regular program foundation 3 base, the special education support services foundation base, 4 the total teacher salary supplement district cost, the total 5 professional development supplement district cost, the total 6 early intervention supplement district cost, the total area 7 education agency teacher salary supplement district cost, 8 and the total area education agency professional development 9 supplement district cost. 10 DIVISION II 11 PROPERTY ASSESSMENT LIMITATIONS 12 Sec. 2. Section 441.21, subsection 4, Code 2011, is amended 13 to read as follows: 14 4. For valuations established as of January 1, 1979, 15 the percentage of actual value at which agricultural and 16 residential property shall be assessed shall be the quotient 17 of the dividend and divisor as defined in this section . The 18 dividend for each class of property shall be the dividend 19 as determined for each class of property for valuations 20 established as of January 1, 1978, adjusted by the product 21 obtained by multiplying the percentage determined for that 22 year by the amount of any additions or deletions to actual 23 value, excluding those resulting from the revaluation of 24 existing properties, as reported by the assessors on the 25 abstracts of assessment for 1978, plus six percent of the 26 amount so determined. However, if the difference between the 27 dividend so determined for either class of property and the 28 dividend for that class of property for valuations established 29 as of January 1, 1978, adjusted by the product obtained by 30 multiplying the percentage determined for that year by the 31 amount of any additions or deletions to actual value, excluding 32 those resulting from the revaluation of existing properties, 33 as reported by the assessors on the abstracts of assessment 34 for 1978, is less than six percent, the 1979 dividend for the 35 -2- LSB 2786XL (4) 84 md/sc 2/ 29
S.F. _____ H.F. _____ other class of property shall be the dividend as determined for 1 that class of property for valuations established as of January 2 1, 1978, adjusted by the product obtained by multiplying 3 the percentage determined for that year by the amount of 4 any additions or deletions to actual value, excluding those 5 resulting from the revaluation of existing properties, as 6 reported by the assessors on the abstracts of assessment for 7 1978, plus a percentage of the amount so determined which is 8 equal to the percentage by which the dividend as determined 9 for the other class of property for valuations established 10 as of January 1, 1978, adjusted by the product obtained by 11 multiplying the percentage determined for that year by the 12 amount of any additions or deletions to actual value, excluding 13 those resulting from the revaluation of existing properties, 14 as reported by the assessors on the abstracts of assessment 15 for 1978, is increased in arriving at the 1979 dividend for 16 the other class of property. The divisor for each class of 17 property shall be the total actual value of all such property 18 in the state in the preceding year, as reported by the 19 assessors on the abstracts of assessment submitted for 1978, 20 plus the amount of value added to said total actual value by 21 the revaluation of existing properties in 1979 as equalized 22 by the director of revenue pursuant to section 441.49 . The 23 director shall utilize information reported on abstracts of 24 assessment submitted pursuant to section 441.45 in determining 25 such percentage. For valuations established as of January 1, 26 1980, and each assessment year thereafter beginning before 27 January 1, 2012 , the percentage of actual value as equalized 28 by the director of revenue as provided in section 441.49 at 29 which agricultural and residential property shall be assessed 30 shall be calculated in accordance with the methods provided 31 herein including the limitation of increases in agricultural 32 and residential assessed values to the percentage increase of 33 the other class of property if the other class increases less 34 than the allowable limit adjusted to include the applicable 35 -3- LSB 2786XL (4) 84 md/sc 3/ 29
S.F. _____ H.F. _____ and current values as equalized by the director of revenue, 1 except that any references to six percent in this subsection 2 shall be four percent. For valuations established as of 3 January 1, 2012, and each assessment year thereafter, the 4 percentage of actual value as equalized by the director of 5 revenue as provided in section 441.49 at which agricultural 6 and residential property shall be assessed shall be calculated 7 in accordance with the methods provided herein including 8 the limitation of increases in agricultural and residential 9 assessed values to the percentage increase of the other 10 class of property if the other class increases less than the 11 allowable limit adjusted to include the applicable and current 12 values as equalized by the director of revenue, except that 13 any references to six percent in this subsection shall be two 14 percent. 15 Sec. 3. Section 441.21, subsection 5, Code 2011, is amended 16 to read as follows: 17 5. a. For valuations established as of January 1, 1979, 18 commercial property and industrial property, excluding 19 properties referred to in section 427A.1, subsection 8 , shall 20 be assessed as a percentage of the actual value of each class 21 of property. The percentage shall be determined for each 22 class of property by the director of revenue for the state in 23 accordance with the provisions of this section . For valuations 24 established as of January 1, 1979, the percentage shall be 25 the quotient of the dividend and divisor as defined in this 26 section . The dividend for each class of property shall be the 27 total actual valuation for each class of property established 28 for 1978, plus six percent of the amount so determined. The 29 divisor for each class of property shall be the valuation 30 for each class of property established for 1978, as reported 31 by the assessors on the abstracts of assessment for 1978, 32 plus the amount of value added to the total actual value by 33 the revaluation of existing properties in 1979 as equalized 34 by the director of revenue pursuant to section 441.49 . For 35 -4- LSB 2786XL (4) 84 md/sc 4/ 29
S.F. _____ H.F. _____ valuations established as of January 1, 1979, property valued 1 by the department of revenue pursuant to chapters 428 , 433 , 2 437 , and 438 shall be considered as one class of property and 3 shall be assessed as a percentage of its actual value. The 4 percentage shall be determined by the director of revenue in 5 accordance with the provisions of this section . For valuations 6 established as of January 1, 1979, the percentage shall be 7 the quotient of the dividend and divisor as defined in this 8 section . The dividend shall be the total actual valuation 9 established for 1978 by the department of revenue, plus ten 10 percent of the amount so determined. The divisor for property 11 valued by the department of revenue pursuant to chapters 428 , 12 433 , 437 , and 438 shall be the valuation established for 1978, 13 plus the amount of value added to the total actual value by 14 the revaluation of the property by the department of revenue 15 as of January 1, 1979. For valuations established as of 16 January 1, 1980, commercial property and industrial property, 17 excluding properties referred to in section 427A.1, subsection 18 8 , shall be assessed at a percentage of the actual value of 19 each class of property. The percentage shall be determined 20 for each class of property by the director of revenue for the 21 state in accordance with the provisions of this section . For 22 valuations established as of January 1, 1980, the percentage 23 shall be the quotient of the dividend and divisor as defined in 24 this section . The dividend for each class of property shall 25 be the dividend as determined for each class of property for 26 valuations established as of January 1, 1979, adjusted by the 27 product obtained by multiplying the percentage determined 28 for that year by the amount of any additions or deletions to 29 actual value, excluding those resulting from the revaluation 30 of existing properties, as reported by the assessors on the 31 abstracts of assessment for 1979, plus four percent of the 32 amount so determined. The divisor for each class of property 33 shall be the total actual value of all such property in 1979, 34 as equalized by the director of revenue pursuant to section 35 -5- LSB 2786XL (4) 84 md/sc 5/ 29
S.F. _____ H.F. _____ 441.49 , plus the amount of value added to the total actual 1 value by the revaluation of existing properties in 1980. The 2 director shall utilize information reported on the abstracts of 3 assessment submitted pursuant to section 441.45 in determining 4 such percentage. For valuations established as of January 1, 5 1980, property valued by the department of revenue pursuant 6 to chapters 428 , 433 , 437 , and 438 shall be assessed at a 7 percentage of its actual value. The percentage shall be 8 determined by the director of revenue in accordance with the 9 provisions of this section . For valuations established as of 10 January 1, 1980, the percentage shall be the quotient of the 11 dividend and divisor as defined in this section . The dividend 12 shall be the total actual valuation established for 1979 by 13 the department of revenue, plus eight percent of the amount so 14 determined. The divisor for property valued by the department 15 of revenue pursuant to chapters 428 , 433 , 437 , and 438 shall be 16 the valuation established for 1979, plus the amount of value 17 added to the total actual value by the revaluation of the 18 property by the department of revenue as of January 1, 1980. 19 For valuations established as of January 1, 1981, and each 20 year thereafter, the percentage of actual value as equalized 21 by the director of revenue as provided in section 441.49 at 22 which commercial property and industrial property, excluding 23 properties referred to in section 427A.1, subsection 8 , shall 24 be assessed shall be calculated in accordance with the methods 25 provided herein, except that any references to six percent 26 in this subsection shall be four percent. For valuations 27 established as of January 1, 1981, and each year thereafter, 28 the percentage of actual value at which property valued by 29 the department of revenue pursuant to chapters 428 , 433 , 437 , 30 and 438 shall be assessed shall be calculated in accordance 31 with the methods provided herein, except that any references 32 to ten percent in this subsection shall be eight percent. 33 Beginning with valuations established as of January 1, 1979, 34 and each year thereafter, property valued by the department of 35 -6- LSB 2786XL (4) 84 md/sc 6/ 29
S.F. _____ H.F. _____ revenue pursuant to chapter 434 shall also be assessed at a 1 percentage of its actual value which percentage shall be equal 2 to the percentage determined by the director of revenue for 3 commercial property, industrial property, or property valued by 4 the department of revenue pursuant to chapters 428 , 433 , 437 , 5 and 438 , whichever is lowest . 6 b. For valuations established on or after January 1, 2012, 7 commercial property, excluding properties referred to in 8 section 427A.1, subsection 8 , shall be assessed as a percentage 9 of the actual value, as determined in this paragraph. 10 (1) For valuations established for the assessment year 11 beginning January 1, 2012, the percentage of actual value as 12 equalized by the director of revenue as provided in section 13 441.49 at which commercial property shall be assessed shall be 14 ninety-two percent. 15 (2) For valuations established for the assessment year 16 beginning January 1, 2013, the percentage of actual value as 17 equalized by the director of revenue as provided in section 18 441.49 at which commercial property shall be assessed shall be 19 eighty-four percent. 20 (3) For valuations established for the assessment year 21 beginning January 1, 2014, the percentage of actual value as 22 equalized by the director of revenue as provided in section 23 441.49 at which commercial property shall be assessed shall be 24 seventy-six percent. 25 (4) For valuations established for the assessment year 26 beginning January 1, 2015, the percentage of actual value as 27 equalized by the director of revenue as provided in section 28 441.49 at which commercial property shall be assessed shall be 29 sixty-eight percent. 30 (5) For valuations established for the assessment year 31 beginning January 1, 2016, and each assessment year thereafter, 32 the percentage of actual value as equalized by the director 33 of revenue as provided in section 441.49 at which commercial 34 property shall be assessed shall be sixty percent. 35 -7- LSB 2786XL (4) 84 md/sc 7/ 29
S.F. _____ H.F. _____ c. For valuations established on or after January 1, 2012, 1 industrial property, excluding properties referred to in 2 section 427A.1, subsection 8, shall be assessed as a percentage 3 of the actual value, as determined in this paragraph. 4 (1) For valuations established for the assessment year 5 beginning January 1, 2012, the percentage of actual value as 6 equalized by the director of revenue as provided in section 7 441.49 at which industrial property shall be assessed shall be 8 ninety-two percent. 9 (2) For valuations established for the assessment year 10 beginning January 1, 2013, the percentage of actual value as 11 equalized by the director of revenue as provided in section 12 441.49 at which industrial property shall be assessed shall be 13 eighty-four percent. 14 (3) For valuations established for the assessment year 15 beginning January 1, 2014, the percentage of actual value as 16 equalized by the director of revenue as provided in section 17 441.49 at which industrial property shall be assessed shall be 18 seventy-six percent. 19 (4) For valuations established for the assessment year 20 beginning January 1, 2015, the percentage of actual value as 21 equalized by the director of revenue as provided in section 22 441.49 at which industrial property shall be assessed shall be 23 sixty-eight percent. 24 (5) For valuations established for the assessment year 25 beginning January 1, 2016, and each assessment year thereafter, 26 the percentage of actual value as equalized by the director 27 of revenue as provided in section 441.49 at which industrial 28 property shall be assessed shall be sixty percent. 29 Sec. 4. NEW SECTION . 441.21A Legislative intent. 30 It is the intent of the general assembly that appropriations 31 be made annually to reimburse local taxing authorities in this 32 state for reductions in property tax collections on commercial 33 and industrial property as a result of the assessment 34 limitations on such property established under section 441.21, 35 -8- LSB 2786XL (4) 84 md/sc 8/ 29
S.F. _____ H.F. _____ subsection 5, paragraphs “b” and “c” , in the following amounts: 1 1. For the fiscal year beginning July 1, 2013, fifty million 2 dollars. 3 2. For the fiscal year beginning July 1, 2014, one hundred 4 million dollars. 5 3. For the fiscal year beginning July 1, 2015, one hundred 6 fifty million dollars. 7 4. For the fiscal year beginning July 1, 2016, two hundred 8 million dollars. 9 5. For the fiscal year beginning July 1, 2017, and each 10 fiscal year thereafter, two hundred fifty million dollars. 11 Sec. 5. SAVINGS PROVISION. This division of this Act, 12 pursuant to section 4.13, does not affect the operation of, 13 or prohibit the application of, prior provisions of section 14 441.21, or rules adopted under chapter 17A to administer prior 15 provisions of section 441.21, for assessment years beginning 16 before January 1, 2012, and for duties, powers, protests, 17 appeals, proceedings, actions, or remedies attributable to an 18 assessment year beginning before January 1, 2012. 19 Sec. 6. APPLICABILITY. This division of this Act applies 20 to property tax assessment years beginning on or after January 21 1, 2012. 22 DIVISION III 23 COUNTY AND CITY BUDGET LIMITATION 24 Sec. 7. Section 23A.2, subsection 10, paragraph h, Code 25 2011, is amended to read as follows: 26 h. The performance of an activity listed in section 331.424 , 27 Code 2011, as a service for which a supplemental levy county 28 may be certified include in its budget . 29 Sec. 8. Section 28M.5, subsection 2, Code 2011, is amended 30 to read as follows: 31 2. If a regional transit district budget allocates 32 revenue responsibilities to the board of supervisors of a 33 participating county, the amount of the regional transit 34 district levy that is the responsibility of the participating 35 -9- LSB 2786XL (4) 84 md/sc 9/ 29
S.F. _____ H.F. _____ county shall be deducted from the maximum rates amount of taxes 1 authorized to be levied by the county pursuant to section 2 331.423 , subsections 1 and 2 subsection 3, paragraphs “b” 3 and “c” , as applicable, unless the county meets its revenue 4 responsibilities as allocated in the budget from other 5 available revenue sources. However, for a regional transit 6 district that includes a county with a population of less than 7 three hundred thousand, the amount of the regional transit 8 district levy that is the responsibility of such participating 9 county shall be deducted from the maximum rate amount of taxes 10 authorized to be levied by the county pursuant to section 11 331.423, subsection 1 3, paragraph “b” . 12 Sec. 9. Section 123.38, subsection 2, Code 2011, is amended 13 to read as follows: 14 2. Any licensee or permittee, or the licensee’s or 15 permittee’s executor or administrator, or any person duly 16 appointed by the court to take charge of and administer the 17 property or assets of the licensee or permittee for the benefit 18 of the licensee’s or permittee’s creditors, may voluntarily 19 surrender a license or permit to the division. When a license 20 or permit is surrendered the division shall notify the local 21 authority, and the division or the local authority shall 22 refund to the person surrendering the license or permit, a 23 proportionate amount of the fee received by the division or 24 the local authority for the license or permit as follows: if 25 a license or permit is surrendered during the first three 26 months of the period for which it was issued, the refund shall 27 be three-fourths of the amount of the fee; if surrendered 28 more than three months but not more than six months after 29 issuance, the refund shall be one-half of the amount of the 30 fee; if surrendered more than six months but not more than 31 nine months after issuance, the refund shall be one-fourth of 32 the amount of the fee. No refund shall be made, however, for 33 any special liquor permit, nor for a liquor control license, 34 wine permit, or beer permit surrendered more than nine months 35 -10- LSB 2786XL (4) 84 md/sc 10/ 29
S.F. _____ H.F. _____ after issuance. For purposes of this subsection, any portion 1 of license or permit fees used for the purposes authorized in 2 section 331.424, subsection 1 , paragraph “a” , subparagraphs 3 (1) and (2), Code 2011, and in section 331.424A , shall not be 4 deemed received either by the division or by a local authority. 5 No refund shall be made to any licensee or permittee, upon the 6 surrender of the license or permit, if there is at the time 7 of surrender, a complaint filed with the division or local 8 authority, charging the licensee or permittee with a violation 9 of this chapter . If upon a hearing on a complaint the license 10 or permit is not revoked or suspended, then the licensee or 11 permittee is eligible, upon surrender of the license or permit, 12 to receive a refund as provided in this section ; but if the 13 license or permit is revoked or suspended upon hearing the 14 licensee or permittee is not eligible for the refund of any 15 portion of the license or permit fee. 16 Sec. 10. Section 218.99, Code 2011, is amended to read as 17 follows: 18 218.99 Counties to be notified of patients’ personal 19 accounts. 20 The administrator in control of a state institution shall 21 direct the business manager of each institution under the 22 administrator’s jurisdiction which is mentioned in section 23 331.424, subsection 1 , paragraph “a” , subparagraphs (1) 24 and (2), and for which services are paid under section 25 331.424A , to quarterly inform the county of legal settlement’s 26 entity designated to perform the county’s central point of 27 coordination process of any patient or resident who has an 28 amount in excess of two hundred dollars on account in the 29 patients’ personal deposit fund and the amount on deposit. The 30 administrators shall direct the business manager to further 31 notify the entity designated to perform the county’s central 32 point of coordination process at least fifteen days before the 33 release of funds in excess of two hundred dollars or upon the 34 death of the patient or resident. If the patient or resident 35 -11- LSB 2786XL (4) 84 md/sc 11/ 29
S.F. _____ H.F. _____ has no county of legal settlement, notice shall be made to the 1 director of human services and the administrator in control of 2 the institution involved. 3 Sec. 11. Section 331.263, subsection 2, Code 2011, is 4 amended to read as follows: 5 2. The governing body of the community commonwealth 6 shall have the authority to levy county taxes and shall 7 have the authority to levy city taxes to the extent the 8 city tax levy authority is transferred by the charter to 9 the community commonwealth. A city participating in the 10 community commonwealth shall transfer a portion of the 11 city’s tax levy authorized under section 384.1 or 384.12 , 12 whichever is applicable, to the governing body of the community 13 commonwealth. The maximum rates amount of taxes authorized to 14 be levied under sections section 384.1 and the maximum amount 15 of taxes authorized to be levied under section 384.12 by a city 16 participating in the community commonwealth shall be reduced 17 by an amount equal to the rates of the same or similar taxes 18 levied in the city by the governing body of the community 19 commonwealth. 20 Sec. 12. Section 331.301, subsection 12, Code 2011, is 21 amended to read as follows: 22 12. The board of supervisors may credit funds to a reserve 23 for the purposes authorized by subsection 11 of this section ; 24 section 331.424, subsection 1 , paragraph “a” , subparagraph 25 (6); and section 331.441, subsection 2 , paragraph “b” . Moneys 26 credited to the reserve, and interest earned on such moneys, 27 shall remain in the reserve until expended for purposes 28 authorized by subsection 11 of this section ; section 331.424, 29 subsection 1 , paragraph “a” , subparagraph (6); or section 30 331.441, subsection 2 , paragraph “b” . 31 Sec. 13. Section 331.421, subsections 1 and 10, Code 2011, 32 are amended by striking the subsections. 33 Sec. 14. Section 331.421, Code 2011, is amended by adding 34 the following new subsection: 35 -12- LSB 2786XL (4) 84 md/sc 12/ 29
S.F. _____ H.F. _____ NEW SUBSECTION . 7A. “Item” means a budgeted expenditure, 1 appropriation, or cash reserve from a fund for a service area, 2 program, program element, or purpose. 3 Sec. 15. Section 331.423, Code 2011, is amended by striking 4 the section and inserting in lieu thereof the following: 5 331.423 Property tax dollars —— maximums. 6 1. Annually, the board shall determine separate property 7 tax levy limits to pay for general county services and rural 8 county services in accordance with this section. The property 9 tax levies separately certified for general county services and 10 rural county services under section 331.434 shall not raise 11 property tax dollars that exceed the amount determined under 12 this section. 13 2. For purposes of this section and section 331.423B, unless 14 the context otherwise requires: 15 a. “Annual growth factor” means an index, expressed as 16 a percentage, determined by the department of management by 17 January 1 of the calendar year in which the budget year begins. 18 In determining the annual growth factor, the department shall 19 calculate the average of the preceding twelve-month percentage 20 change, which shall be computed on a monthly basis, in the 21 midwest consumer price index. In no case, however, shall the 22 annual growth factor exceed four percent. 23 b. “Boundary adjustment” means annexation, severance, 24 incorporation, or discontinuance as those terms are defined in 25 section 368.1. 26 c. “Budget year” is the fiscal year beginning during the 27 calendar year in which a budget is certified. 28 d. “Current fiscal year” is the fiscal year ending during 29 the calendar year in which a budget is certified. 30 e. “Net new valuation taxes” means the amount of property 31 tax dollars equal to the current fiscal year’s levy rate in 32 the county for general county services or for rural county 33 services, as applicable, multiplied by the increase from the 34 current fiscal year to the budget year in taxable valuation due 35 -13- LSB 2786XL (4) 84 md/sc 13/ 29
S.F. _____ H.F. _____ to the following: 1 (1) Net new construction, excluding all incremental 2 valuation that is released in any one year from an urban 3 renewal area for which taxes were being divided under section 4 403.19 if the property for the valuation being released remains 5 part of the urban renewal area. 6 (2) Additions or improvements to existing structures. 7 (3) Remodeling of existing structures for which a building 8 permit is required. 9 (4) Net boundary adjustment. 10 (5) A municipality no longer dividing tax revenues in 11 an urban renewal area as provided in section 403.19, to the 12 extent that the incremental valuation released is due to new 13 construction or revaluation on property newly constructed, 14 additions or improvements to existing property, net boundary 15 adjustment, or expiration of tax abatements, all occurring 16 after the division of revenue begins. 17 (6) That portion of taxable property located in an urban 18 revitalization area on which an exemption was allowed and such 19 exemption has expired. 20 3. a. For the fiscal year beginning July 1, 2012, and 21 subsequent fiscal years, the maximum amount of property tax 22 dollars which may be certified for levy by a county for general 23 county services and rural county services shall be the maximum 24 property tax dollars calculated under paragraphs “b” and “c” , 25 respectively. 26 b. The maximum property tax dollars that may be levied for 27 general county services is an amount equal to the sum of the 28 following: 29 (1) The annual growth factor times the current fiscal year’s 30 maximum property tax dollars for general county services. 31 (2) The amount of net new valuation taxes in the county. 32 c. The maximum property tax dollars that may be levied for 33 rural county services is an amount equal to the sum of the 34 following: 35 -14- LSB 2786XL (4) 84 md/sc 14/ 29
S.F. _____ H.F. _____ (1) The annual growth factor times the current fiscal year’s 1 maximum property tax dollars for rural county services. 2 (2) The amount of net new valuation taxes in the 3 unincorporated area of the county. 4 4. a. For purposes of calculating maximum property tax 5 dollars for general county services for the fiscal year 6 beginning July 1, 2012, only, the term “current fiscal year’s 7 maximum property tax dollars” shall mean the total amount of 8 property tax dollars certified by the county for general county 9 services for the fiscal year beginning July 1, 2011. 10 b. For purposes of calculating maximum property tax dollars 11 for rural county services for the fiscal year beginning July 12 1, 2012, only, the term “current fiscal year’s maximum property 13 tax dollars” shall mean the total amount of property tax dollars 14 certified by the county for rural county services for the 15 fiscal year beginning July 1, 2011. 16 5. Property taxes certified for deposit in the mental 17 health, mental retardation, and developmental disabilities 18 services fund in section 331.424A, the emergency services fund 19 in section 331.424C, the debt service fund in section 331.430, 20 any capital projects fund established by the county for deposit 21 of bond, loan, or note proceeds, and any temporary increase 22 approved pursuant to section 331.424, are not included in the 23 maximum amount of property tax dollars that may be certified 24 for a budget year under subsection 3. 25 6. The department of management, in consultation with the 26 county finance committee, shall adopt rules to administer this 27 section. The department shall prescribe forms to be used by 28 counties when making calculations required by this section. 29 Sec. 16. NEW SECTION . 331.423B Ending fund balance. 30 1. a. Budgeted ending fund balances on a cash basis for 31 a budget year in excess of twenty-five percent of budgeted 32 expenditures in either the general fund or rural services 33 fund for that budget year shall be explicitly reserved or 34 designated for a specific purpose and specifically described 35 -15- LSB 2786XL (4) 84 md/sc 15/ 29
S.F. _____ H.F. _____ in the certified budget. The description shall include the 1 projected date that the expenditures will be appropriated for 2 the specific purpose. 3 b. A county is encouraged, but not required, to reduce 4 budgeted, unreserved, or undesignated ending fund balances for 5 the budget year to an amount equal to approximately twenty-five 6 percent of budgeted expenditures in the general fund and 7 rural services fund for that budget year unless a decision is 8 certified by the state appeal board ordering a reduction in the 9 ending fund balance of any of those funds. 10 c. In a protest to the county budget under section 331.436, 11 the county shall have the burden of proving that the budgeted 12 balances in excess of twenty-five percent are reasonably likely 13 to be appropriated for the explicitly reserved or designated 14 specific purpose by the date identified in the certified 15 budget. The excess budgeted balance for the specific purpose 16 shall be considered an increase in an item in the budget for 17 purposes of section 24.28. 18 2. a. For a county that has, as of June 30, 2011, reduced 19 its actual ending fund balance to less than twenty-five 20 percent of actual expenditures on a cash basis, additional 21 property taxes may be computed and levied as provided in this 22 subsection. The additional property tax levy amount is an 23 amount not to exceed twenty-five percent of actual expenditures 24 from the general fund and rural services fund for the fiscal 25 year beginning July 1, 2010, minus the combined ending fund 26 balances for those funds for that year. 27 b. The amount of the additional property taxes shall be 28 apportioned between the general fund and the rural services 29 fund. However, the amount apportioned for general county 30 services and for rural county services shall not exceed for 31 each fund twenty-five percent of actual expenditures for the 32 fiscal year beginning July 1, 2010. 33 c. All or a portion of additional property tax dollars 34 may be levied for the purpose of increasing cash reserves 35 -16- LSB 2786XL (4) 84 md/sc 16/ 29
S.F. _____ H.F. _____ for general county services and rural county services in the 1 budget year. The additional property tax dollars authorized 2 under this subsection but not levied may be carried forward as 3 unused ending fund balance taxing authority until and for the 4 fiscal year beginning July 1, 2017. The amount carried forward 5 shall not exceed twenty-five percent of the maximum amount of 6 property tax dollars available in the current fiscal year. 7 Additionally, property taxes that are levied as unused ending 8 fund balance taxing authority under this subsection may be the 9 subject of a protest under section 331.436, and the amount 10 will be considered an increase in an item in the budget for 11 purposes of section 24.28. The amount of additional property 12 taxes levied under this subsection shall not be included in the 13 computation of the maximum amount of property tax dollars which 14 may be certified and levied under section 331.423. 15 Sec. 17. Section 331.424, Code 2011, is amended by striking 16 the section and inserting in lieu thereof the following: 17 331.424 Authority to levy beyond maximum property tax 18 dollars. 19 1. The board may certify additions to the maximum amount 20 of property tax dollars to be levied for a period of time not 21 to exceed two years if the proposition has been submitted at a 22 special election and received a favorable majority of the votes 23 cast on the proposition. 24 2. The special election is subject to the following: 25 a. The board must give at least thirty-two days’ notice to 26 the county commissioner of elections that the special election 27 is to be held. 28 b. The special election shall be conducted by the county 29 commissioner of elections in accordance with law. 30 c. The proposition to be submitted shall be substantially 31 in the following form: 32 Vote “yes” or “no” on the following: Shall the county of 33 _______ levy for an additional $_______ each year for ___ years 34 beginning July 1, _____, in excess of the statutory limits 35 -17- LSB 2786XL (4) 84 md/sc 17/ 29
S.F. _____ H.F. _____ otherwise applicable for the (general county services or rural 1 services) fund? 2 d. The canvass shall be held beginning at 1:00 p.m. on 3 the second day which is not a holiday following the special 4 election. 5 e. Notice of the special election shall be published at 6 least once in a newspaper as specified in section 331.305 prior 7 to the date of the special election. The notice shall appear 8 as early as practicable after the board has voted to submit 9 a proposition to the voters to levy additional property tax 10 dollars. 11 3. Registered voters in the county may vote on the 12 proposition to increase property taxes for the general fund 13 in excess of the statutory limit. Registered voters residing 14 outside the corporate limits of a city within the county may 15 vote on the proposition to increase property taxes for the 16 rural services fund in excess of the statutory limit. 17 4. The amount of additional property tax dollars certified 18 under this section shall not be included in the computation 19 of the maximum amount of property tax dollars which may be 20 certified and levied under section 331.423. 21 Sec. 18. Section 331.424A, subsection 4, Code 2011, is 22 amended to read as follows: 23 4. For the fiscal year beginning July 1, 1996, and for each 24 subsequent fiscal year, the county shall certify a levy for 25 payment of services. For each fiscal year, county revenues 26 from taxes imposed by the county credited to the services fund 27 shall not exceed an amount equal to the amount of base year 28 expenditures for services as defined in section 331.438 , less 29 the amount of property tax relief to be received pursuant to 30 section 426B.2 , in the fiscal year for which the budget is 31 certified. The county auditor and the board of supervisors 32 shall reduce the amount of the levy certified for the services 33 fund by the amount of property tax relief to be received. A 34 levy certified under this section is not subject to the appeal 35 -18- LSB 2786XL (4) 84 md/sc 18/ 29
S.F. _____ H.F. _____ provisions of section 331.426 or to any other provision in law 1 authorizing a county to exceed, increase, or appeal a property 2 tax levy limit. 3 Sec. 19. Section 331.427, subsection 3, paragraph l, Code 4 2011, is amended to read as follows: 5 l. Services listed in section 331.424, subsection 1 , Code 6 2011, and section 331.554 . 7 Sec. 20. Section 331.428, subsection 2, paragraph d, Code 8 2011, is amended to read as follows: 9 d. Services listed under section 331.424, subsection 2 , Code 10 2011 . 11 Sec. 21. Section 373.10, Code 2011, is amended to read as 12 follows: 13 373.10 Taxing authority. 14 The metropolitan council shall have the authority to 15 levy city taxes to the extent the city tax levy authority 16 is transferred by the charter to the metropolitan council. 17 A member city shall transfer a portion of the city’s tax 18 levy authorized under section 384.1 or 384.12 , whichever is 19 applicable, to the metropolitan council. The maximum rates 20 amount of taxes authorized to be levied under sections section 21 384.1 and the taxes authorized to be levied under section 22 384.12 by a member city shall be reduced by an amount equal to 23 the rates of the same or similar taxes levied in the city by the 24 metropolitan council. 25 Sec. 22. Section 384.1, Code 2011, is amended by striking 26 the section and inserting in lieu thereof the following: 27 384.1 Property tax dollars —— maximums. 28 1. A city shall certify taxes to be levied by the city 29 on all taxable property within the city limits, for all city 30 government purposes. Annually, the city council may certify 31 basic levies for city government purposes, subject to the 32 limitation on property tax dollars provided in this section. 33 2. For purposes of this section and section 384.1B, unless 34 the context otherwise requires: 35 -19- LSB 2786XL (4) 84 md/sc 19/ 29
S.F. _____ H.F. _____ a. “Annual growth factor” means an index, expressed as 1 a percentage, determined by the department of management by 2 January 1 of the calendar year in which the budget year begins. 3 In determining the annual growth factor, the department shall 4 calculate the average of the preceding twelve-month percentage 5 change, which shall be computed on a monthly basis, in the 6 midwest consumer price index. In no case, however, shall the 7 annual growth factor exceed four percent. 8 b. “Boundary adjustment” means annexation, severance, 9 incorporation, or discontinuance as those terms are defined in 10 section 368.1. 11 c. “Budget year” is the fiscal year beginning during the 12 calendar year in which a budget is certified. 13 d. “Current fiscal year” is the fiscal year ending during 14 the calendar year in which a budget is certified. 15 e. “Net new valuation taxes” means the amount of property 16 tax dollars equal to the current fiscal year’s levy rate in the 17 city for the general fund multiplied by the increase from the 18 current fiscal year to the budget year in taxable valuation due 19 to the following: 20 (1) Net new construction, excluding all incremental 21 valuation that is released in any one year from an urban 22 renewal area for which taxes were being divided under section 23 403.19 if the property for the valuation being released remains 24 part of the urban renewal area. 25 (2) Additions or improvements to existing structures. 26 (3) Remodeling of existing structures for which a building 27 permit is required. 28 (4) Net boundary adjustment. 29 (5) A municipality no longer dividing tax revenues in 30 an urban renewal area as provided in section 403.19, to the 31 extent that the incremental valuation released is due to new 32 construction or revaluation on property newly constructed, 33 additions or improvements to existing property, net boundary 34 adjustment, or expiration of tax abatements, all occurring 35 -20- LSB 2786XL (4) 84 md/sc 20/ 29
S.F. _____ H.F. _____ after the division of revenue begins. 1 (6) That portion of taxable property located in an urban 2 revitalization area on which an exemption was allowed and such 3 exemption has expired. 4 3. a. For the fiscal year beginning July 1, 2012, and 5 subsequent fiscal years, the maximum amount of property 6 tax dollars which may be certified for levy by a city for 7 the general fund shall be the maximum property tax dollars 8 calculated under paragraph “b” . 9 b. The maximum property tax dollars that may be levied for 10 deposit in the general fund is an amount equal to the sum of the 11 following: 12 (1) The annual growth factor times the current fiscal year’s 13 maximum property tax dollars for the general fund. 14 (2) The amount of net new valuation taxes in the city. 15 4. For purposes of calculating maximum property tax dollars 16 for the city general fund for the fiscal year beginning July 17 1, 2012, only, the term “current fiscal year’s maximum property 18 tax dollars” shall mean the total amount of property tax dollars 19 certified by the city for the city’s general fund for the 20 fiscal year beginning July 1, 2011. 21 5. Property taxes certified for deposit in the debt service 22 fund in section 384.4, trust and agency funds in section 23 384.6, capital improvements reserve fund in section 384.7, 24 the emergency fund in section 384.8, any capital projects 25 fund established by the city for deposit of bond, loan, or 26 note proceeds, any temporary increase approved pursuant to 27 section 384.12A, property taxes collected from a voted levy in 28 section 384.12, and property taxes levied under section 384.12, 29 subsection 18, are not counted against the maximum amount of 30 property tax dollars that may be certified for a fiscal year 31 under subsection 3. 32 6. Notwithstanding the maximum amount of taxes a city 33 may certify for levy, the tax levied by a city on tracts of 34 land and improvements on the tracts of land used and assessed 35 -21- LSB 2786XL (4) 84 md/sc 21/ 29
S.F. _____ H.F. _____ for agricultural or horticultural purposes shall not exceed 1 three dollars and three-eighths cents per thousand dollars 2 of assessed value in any year. Improvements located on such 3 tracts of land and not used for agricultural or horticultural 4 purposes and all residential dwellings are subject to the same 5 rate of tax levied by the city on all other taxable property 6 within the city. 7 7. The department of management, in consultation with the 8 city finance committee, shall adopt rules to administer this 9 section. The department shall prescribe forms to be used by 10 cities when making calculations required by this section. 11 Sec. 23. NEW SECTION . 384.1B Ending fund balance. 12 1. a. Budgeted ending fund balances on a cash basis for 13 a budget year in excess of twenty-five percent of budgeted 14 expenditures for that budget year shall be explicitly reserved 15 or designated for a specific purpose and specifically described 16 in the certified budget. The description shall include the 17 projected date that the expenditures will be appropriated for 18 the specific purpose. 19 b. A city is encouraged, but not required, to reduce 20 budgeted, unreserved, or undesignated ending fund balances for 21 the budget year to an amount equal to approximately twenty-five 22 percent of budgeted expenditures in the general fund for that 23 budget year unless a decision is certified by the state appeal 24 board ordering a reduction in the ending fund balance of the 25 fund. 26 c. In a protest to the city budget under section 384.19, 27 the city shall have the burden of proving that the budgeted 28 balances in excess of twenty-five percent are reasonably likely 29 to be appropriated for the explicitly reserved or designated 30 specific purpose by the date identified in the certified 31 budget. The excess budgeted balance for the specific purpose 32 shall be considered an increase in an item in the budget for 33 purposes of section 24.28. 34 2. a. For a city that has, as of June 30, 2011, reduced 35 -22- LSB 2786XL (4) 84 md/sc 22/ 29
S.F. _____ H.F. _____ its ending fund balance to less than twenty-five percent of 1 actual expenditures on a cash basis, additional property taxes 2 may be computed and levied as provided in this subsection. 3 The additional property tax levy amount is an amount not to 4 exceed the difference between twenty-five percent of actual 5 expenditures for city government purposes for the fiscal year 6 beginning July 1, 2010, minus the ending fund balance for that 7 year. 8 b. All or a portion of additional property tax dollars 9 may be levied for the purpose of increasing cash reserves for 10 city government purposes in the budget year. The additional 11 property tax dollars authorized under this subsection but not 12 levied may be carried forward as unused ending fund balance 13 taxing authority until and for the fiscal year beginning 14 July 1, 2017. The amount carried forward shall not exceed 15 twenty-five percent of the maximum amount of property tax 16 dollars available in the current fiscal year. Additionally, 17 property taxes that are levied as unused ending fund balance 18 taxing authority under this subsection may be the subject of a 19 protest under section 384.19, and the amount will be considered 20 an increase in an item in the budget for purposes of section 21 24.28. The amount of additional property tax dollars levied 22 under this subsection shall not be included in the computation 23 of the maximum amount of property tax dollars which may be 24 certified and levied under section 384.1. 25 Sec. 24. Section 384.12, subsection 20, Code 2011, is 26 amended by striking the subsection. 27 Sec. 25. NEW SECTION . 384.12A Authority to levy beyond 28 maximum property tax dollars. 29 1. The city council may certify additions to the maximum 30 amount of property tax dollars to be levied for a period of 31 time not to exceed two years if the proposition has been 32 submitted at a special election and received a favorable 33 majority of the votes cast on the proposition. 34 2. The special election is subject to the following: 35 -23- LSB 2786XL (4) 84 md/sc 23/ 29
S.F. _____ H.F. _____ a. The city council must give at least thirty-two days’ 1 notice to the county commissioner of elections that the special 2 election is to be held. 3 b. The special election shall be conducted by the county 4 commissioner of elections in accordance with law. 5 c. The proposition to be submitted shall be substantially 6 in the following form: 7 Vote “yes” or “no” on the following: Shall the city of 8 _______ levy for an additional $_______ each year for ___ years 9 beginning next July 1, ____, in excess of the statutory limits 10 otherwise applicable for the city general fund? 11 d. The canvass shall be held beginning at 1:00 p.m. on 12 the second day which is not a holiday following the special 13 election. 14 e. Notice of the special election shall be published at 15 least once in a newspaper as specified in section 362.3 prior 16 to the date of the special election. The notice shall appear 17 as early as practicable after the city council has voted to 18 submit a proposition to the voters to levy additional property 19 tax dollars. 20 3. The amount of additional property tax dollars certified 21 under this section 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. 26. Section 384.19, Code 2011, is amended by adding the 25 following new unnumbered paragraph: 26 NEW UNNUMBERED PARAGRAPH . For purposes of a tax protest 27 filed under this section, “item” means a budgeted expenditure, 28 appropriation, or cash reserve from a fund for a service area, 29 program, program element, or purpose. 30 Sec. 27. Section 386.8, Code 2011, is amended to read as 31 follows: 32 386.8 Operation tax. 33 A city may establish a self-supported improvement district 34 operation fund, and may certify taxes not to exceed the 35 -24- LSB 2786XL (4) 84 md/sc 24/ 29
S.F. _____ H.F. _____ rate limitation as established in the ordinance creating the 1 district, or any amendment thereto, each year to be levied 2 for the fund against all of the property in the district, 3 for the purpose of paying the administrative expenses of 4 the district, which may include but are not limited to 5 administrative personnel salaries, a separate administrative 6 office, planning costs including consultation fees, engineering 7 fees, architectural fees, and legal fees and all other expenses 8 reasonably associated with the administration of the district 9 and the fulfilling of the purposes of the district. The taxes 10 levied for this fund may also be used for the purpose of paying 11 maintenance expenses of improvements or self-liquidating 12 improvements for a specified length of time with one or more 13 options to renew if such is clearly stated in the petition 14 which requests the council to authorize construction of the 15 improvement or self-liquidating improvement, whether or not 16 such petition is combined with the petition requesting creation 17 of a district. Parcels of property which are assessed as 18 residential property for property tax purposes are exempt from 19 the tax levied under this section except residential properties 20 within a duly designated historic district. A tax levied under 21 this section is not subject to the levy limitation in section 22 384.1 . 23 Sec. 28. Section 386.9, Code 2011, is amended to read as 24 follows: 25 386.9 Capital improvement tax. 26 A city may establish a capital improvement fund for a 27 district and may certify taxes, not to exceed the rate 28 established by the ordinance creating the district, or any 29 subsequent amendment thereto, each year to be levied for 30 the fund against all of the property in the district, for 31 the purpose of accumulating moneys for the financing or 32 payment of a part or all of the costs of any improvement or 33 self-liquidating improvement. However, parcels of property 34 which are assessed as residential property for property tax 35 -25- LSB 2786XL (4) 84 md/sc 25/ 29
S.F. _____ H.F. _____ purposes are exempt from the tax levied under this section 1 except residential properties within a duly designated historic 2 district. A tax levied under this section is not subject to 3 the levy limitations in section 384.1 or 384.7 . 4 Sec. 29. REPEAL. Sections 331.425 and 331.426, Code 2011, 5 are repealed. 6 Sec. 30. APPLICABILITY. This division of this Act applies 7 to fiscal years beginning on or after July 1, 2012. 8 EXPLANATION 9 This bill makes changes to state and local government 10 finances by making changes to property taxation, school 11 financing, and county and city budgets. 12 Division I of the bill provides for an increase in the 13 regular program foundation base under the state school 14 foundation program. The foundation base is the specified 15 percentage of the state cost per pupil calculation which is 16 paid as state aid to school districts, above and beyond the 17 uniform property tax levy imposed in Code section 257.3. 18 Beginning with the budget year commencing July 1, 2012, the 19 increase is phased in over a seven-year period in equal annual 20 increments, from the current foundation base level of 87.5 21 percent to the level of 100 percent in the eighth year. 22 Division II of the bill changes the property tax assessment 23 limitation percentage for residential property and agricultural 24 property from 4 percent to 2 percent for assessment years 25 beginning on or after January 1, 2012. 26 Division II of the bill strikes the methodology in Code 27 section 441.21(5) currently used to determine the percentage 28 of actual value at which commercial property and industrial 29 property are assessed for property tax purposes. The bill 30 provides that for valuations established for the assessment 31 year beginning January 1, 2012, the percentage of actual value 32 at which commercial property and industrial property shall 33 be assessed shall be 92 percent. The bill provides that 34 for each assessment year thereafter the percentage at which 35 -26- LSB 2786XL (4) 84 md/sc 26/ 29
S.F. _____ H.F. _____ commercial property and industrial property are assessed is 1 reduced by 8 percentage points each year until the percentage 2 is 60 percent. The bill provides that for the assessment year 3 beginning January 1, 2016, and each assessment year thereafter, 4 commercial property and industrial property are assessed at 60 5 percent. Under the bill, commercial property and industrial 6 property remain separate classifications of property. 7 Division II of the bill specifies that it is the intent of 8 the general assembly that appropriations be made annually in 9 fiscal years beginning on or after July 1, 2013, to reimburse 10 local taxing authorities for reductions in property tax 11 collections on commercial and industrial property as a result 12 of the assessment limitations on such property established 13 in the bill. The bill specifies the amounts of the intended 14 appropriations. 15 Division II of the bill also makes corresponding changes to 16 other provisions of Code section 441.21, including removing 17 the commercial property and industrial property valuation 18 limitations from the methodology used to determine the 19 percentage at which property valued by the department of 20 revenue pursuant to Code chapter 434 (railway companies) is 21 assessed. 22 Division II of the bill applies to property tax assessment 23 years beginning on or after January 1, 2012. The bill, 24 pursuant to Code section 4.13, does not affect the application 25 of prior provisions of Code section 441.21 to assessment years 26 beginning before January 1, 2012. 27 Division III of the bill removes the property tax levy rate 28 limitations on the general and rural funds for counties and on 29 the general fund for cities and substitutes a limitation on the 30 maximum amount of property tax dollars that may be certified 31 for expenditure by a county or city for budget years beginning 32 on or after July 1, 2012. For the budget year beginning July 33 1, 2012, and subsequent budget years, the maximum amount of 34 property tax dollars which may be certified for levy shall be 35 -27- LSB 2786XL (4) 84 md/sc 27/ 29
S.F. _____ H.F. _____ an amount equal to the sum of the current fiscal year’s total 1 property tax dollars certified by the county multiplied by the 2 annual growth factor, as defined in the bill, and the amount of 3 net new valuation taxes, as defined in the bill. 4 Division III also allows counties and cities to certify 5 additions to the maximum amount of property tax dollars to be 6 levied for a period of time not to exceed two years if the 7 proposition has been approved at a special election. The bill 8 specifies the notice and election requirements for such a 9 proposition. The bill specifies that such amounts approved at 10 special election are not to be included in the computation of 11 the maximum amount of property tax dollars for future budget 12 years. 13 Division III of the bill specifies certain requirements 14 for ending fund balances for counties and cities. The bill 15 provides that budgeted ending fund balances for a budget 16 year in excess of 25 percent of budgeted expenditures 17 shall be explicitly reserved or designated for a specific 18 purpose and specifically described in the certified budget. 19 The description must include the projected date that the 20 expenditures will be appropriated for the specific purpose. 21 Under the bill, counties and cities are encouraged, but 22 not required, to reduce budgeted, unreserved, or undesignated 23 ending fund balances for the budget year to an amount equal 24 to approximately 25 percent of budgeted expenditures for that 25 budget year unless a decision is certified by the state appeal 26 board ordering a reduction in the ending fund balance of any of 27 those funds. The county or city, as applicable, has the burden 28 of proving that the budgeted balances in excess of 25 percent 29 are reasonably likely to be appropriated for the explicitly 30 reserved or designated specific purpose by the date identified 31 in the certified budget. 32 Division III of the bill also allows for additional property 33 taxes to be levied in certain fiscal years for those counties 34 or cities that have, as of June 30, 2011, reduced their 35 -28- LSB 2786XL (4) 84 md/sc 28/ 29
S.F. _____ H.F. _____ actual ending fund balance to less than 25 percent of actual 1 expenditures. Such additional property tax dollars authorized 2 but not levied may be carried forward as unused ending 3 fund balance taxing authority until and for the fiscal year 4 beginning July 1, 2017. However, the amount carried forward 5 shall not exceed 25 percent of the maximum amount of property 6 tax dollars available in the current fiscal year. The amount 7 of such additional property taxes levied shall not, however, be 8 included in the computation of the maximum amount of property 9 tax dollars which may be certified and levied in future budget 10 years. 11 Division III also makes conforming amendments to other 12 provisions of the Code. 13 Division III applies to fiscal years beginning on or after 14 July 1, 2012. 15 -29- LSB 2786XL (4) 84 md/sc 29/ 29