House Study Bill 519 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED GOVERNOR’S BILL) A BILL FOR An Act relating to property taxation and local government 1 budgets by establishing and modifying property assessment 2 limitations, providing for certain property tax replacement 3 payments, establishing budget limitations for counties and 4 cities, eliminating certain reporting requirements, making 5 appropriations, and including applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5399XL (11) 84 md/sc

S.F. _____ H.F. _____ DIVISION I 1 PROPERTY ASSESSMENT LIMITATIONS —— PROPERTY TAX REPLACEMENT 2 Section 1. Section 257.3, subsection 1, Code 2011, is 3 amended by adding the following new paragraph: 4 NEW PARAGRAPH . d. The amount paid to each school district 5 for the commercial and industrial property tax replacement 6 claim under section 441.21A shall be regarded as property tax. 7 The portion of the payment which is foundation property tax 8 shall be determined by applying the foundation property tax 9 rate to the amount computed under section 441.21A, subsection 10 4, paragraph “a” , and such amount shall be prorated pursuant to 11 section 441.21A, subsection 2, if applicable. 12 Sec. 2. Section 331.512, Code 2011, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 13A. Carry out duties relating to the 15 calculation and payment of commercial and industrial property 16 tax replacement claims under section 441.21A. 17 Sec. 3. Section 331.559, Code 2011, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 25A. Carry out duties relating to the 20 calculation and payment of commercial and industrial property 21 tax replacement claims under section 441.21A. 22 Sec. 4. Section 441.21, subsection 4, Code Supplement 2011, 23 is amended to read as follows: 24 4. For valuations established as of January 1, 1979, 25 the percentage of actual value at which agricultural and 26 residential property shall be assessed shall be the quotient 27 of the dividend and divisor as defined in this section . The 28 dividend for each class of property shall be the dividend 29 as determined for each class of property for valuations 30 established as of January 1, 1978, adjusted by the product 31 obtained by multiplying the percentage determined for that 32 year by the amount of any additions or deletions to actual 33 value, excluding those resulting from the revaluation of 34 existing properties, as reported by the assessors on the 35 -1- LSB 5399XL (11) 84 md/sc 1/ 37

S.F. _____ H.F. _____ abstracts of assessment for 1978, plus six percent of the 1 amount so determined. However, if the difference between the 2 dividend so determined for either class of property and the 3 dividend for that class of property for valuations established 4 as of January 1, 1978, adjusted by the product obtained by 5 multiplying the percentage determined for that year by the 6 amount of any additions or deletions to actual value, excluding 7 those resulting from the revaluation of existing properties, 8 as reported by the assessors on the abstracts of assessment 9 for 1978, is less than six percent, the 1979 dividend for the 10 other class of property shall be the dividend as determined for 11 that class of property for valuations established as of January 12 1, 1978, adjusted by the product obtained by multiplying 13 the percentage determined for that year by the amount of 14 any additions or deletions to actual value, excluding those 15 resulting from the revaluation of existing properties, as 16 reported by the assessors on the abstracts of assessment for 17 1978, plus a percentage of the amount so determined which is 18 equal to the percentage by which the dividend as determined 19 for the other class of property for valuations established 20 as of January 1, 1978, adjusted by the product obtained by 21 multiplying the percentage determined for that year by the 22 amount of any additions or deletions to actual value, excluding 23 those resulting from the revaluation of existing properties, 24 as reported by the assessors on the abstracts of assessment 25 for 1978, is increased in arriving at the 1979 dividend for 26 the other class of property. The divisor for each class 27 of property shall be the total actual value of all such 28 property in the state in the preceding year, as reported by 29 the assessors on the abstracts of assessment submitted for 30 1978, plus the amount of value added to said total actual 31 value by the revaluation of existing properties in 1979 as 32 equalized by the director of revenue pursuant to section 33 441.49 . The director shall utilize information reported on 34 abstracts of assessment submitted pursuant to section 441.45 35 -2- LSB 5399XL (11) 84 md/sc 2/ 37

S.F. _____ H.F. _____ in determining such percentage. For valuations established 1 as of January 1, 1980, and each assessment year thereafter 2 beginning before January 1, 2013 , the percentage of actual 3 value as equalized by the director of revenue as provided 4 in section 441.49 at which agricultural and residential 5 property shall be assessed shall be calculated in accordance 6 with the methods provided herein including the limitation of 7 increases in agricultural and residential assessed values to 8 the percentage increase of the other class of property if the 9 other class increases less than the allowable limit adjusted to 10 include the applicable and current values as equalized by the 11 director of revenue, except that any references to six percent 12 in this subsection shall be four percent. For valuations 13 established as of January 1, 2013, and each assessment year 14 thereafter, the percentage of actual value as equalized by the 15 director of revenue as provided in section 441.49 at which 16 agricultural and residential property shall be assessed shall 17 be calculated in accordance with the methods provided herein 18 including the limitation of increases in agricultural and 19 residential assessed values to the percentage increase of the 20 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 two percent. However, for valuations established as 25 of 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, as calculated in 29 accordance with the methods provided herein, shall not increase 30 or decrease more than two percentage points from the percentage 31 of actual value applicable to the same class of property in the 32 previous assessment year. 33 Sec. 5. Section 441.21, subsection 5, Code Supplement 2011, 34 is amended to read as follows: 35 -3- LSB 5399XL (11) 84 md/sc 3/ 37

S.F. _____ H.F. _____ 5. a. For valuations established as of January 1, 1979, 1 commercial property and industrial property, excluding 2 properties referred to in section 427A.1, subsection 8 , shall 3 be assessed as a percentage of the actual value of each class 4 of property. The percentage shall be determined for each 5 class of property by the director of revenue for the state in 6 accordance with the provisions of this section . For valuations 7 established as of January 1, 1979, the percentage shall be 8 the quotient of the dividend and divisor as defined in this 9 section . The dividend for each class of property shall be the 10 total actual valuation for each class of property established 11 for 1978, plus six percent of the amount so determined. The 12 divisor for each class of property shall be the valuation 13 for each class of property established for 1978, as reported 14 by the assessors on the abstracts of assessment for 1978, 15 plus the amount of value added to the total actual value by 16 the revaluation of existing properties in 1979 as equalized 17 by the director of revenue pursuant to section 441.49 . For 18 valuations established as of January 1, 1979, property valued 19 by the department of revenue pursuant to chapters 428 , 433 , 20 437 , and 438 shall be considered as one class of property and 21 shall be assessed as a percentage of its actual value. The 22 percentage shall be determined by the director of revenue 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 shall be the total actual valuation 27 established for 1978 by the department of revenue, plus ten 28 percent of the amount so determined. The divisor for property 29 valued by the department of revenue pursuant to chapters 428 , 30 433 , 437 , and 438 shall be the valuation established for 1978, 31 plus the amount of value added to the total actual value by 32 the revaluation of the property by the department of revenue 33 as of January 1, 1979. For valuations established as of 34 January 1, 1980, commercial property and industrial property, 35 -4- LSB 5399XL (11) 84 md/sc 4/ 37

S.F. _____ H.F. _____ excluding properties referred to in section 427A.1, subsection 1 8 , shall be assessed at a percentage of the actual value of 2 each class of property. The percentage shall be determined 3 for each class of property by the director of revenue for the 4 state in accordance with the provisions of this section . For 5 valuations established as of January 1, 1980, the percentage 6 shall be the quotient of the dividend and divisor as defined in 7 this section . The dividend for each class of property shall 8 be the dividend as determined for each class of property for 9 valuations established as of January 1, 1979, adjusted by the 10 product obtained by multiplying the percentage determined 11 for that year by the amount of any additions or deletions to 12 actual value, excluding those resulting from the revaluation 13 of existing properties, as reported by the assessors on the 14 abstracts of assessment for 1979, plus four percent of the 15 amount so determined. The divisor for each class of property 16 shall be the total actual value of all such property in 1979, 17 as equalized by the director of revenue pursuant to section 18 441.49 , plus the amount of value added to the total actual 19 value by the revaluation of existing properties in 1980. The 20 director shall utilize information reported on the abstracts of 21 assessment submitted pursuant to section 441.45 in determining 22 such percentage. For valuations established as of January 1, 23 1980, property valued by the department of revenue pursuant 24 to chapters 428 , 433 , 437 , and 438 shall be assessed at a 25 percentage of its actual value. The percentage shall be 26 determined by the director of revenue in accordance with the 27 provisions of this section . For valuations established as of 28 January 1, 1980, the percentage shall be the quotient of the 29 dividend and divisor as defined in this section . The dividend 30 shall be the total actual valuation established for 1979 by 31 the department of revenue, plus eight percent of the amount so 32 determined. The divisor for property valued by the department 33 of revenue pursuant to chapters 428 , 433 , 437 , and 438 shall be 34 the valuation established for 1979, plus the amount of value 35 -5- LSB 5399XL (11) 84 md/sc 5/ 37

S.F. _____ H.F. _____ added to the total actual value by the revaluation of the 1 property by the department of revenue as of January 1, 1980. 2 For valuations established as of January 1, 1981, and each 3 year thereafter, the percentage of actual value as equalized 4 by the director of revenue as provided in section 441.49 at 5 which commercial property and industrial property, excluding 6 properties referred to in section 427A.1, subsection 8 , shall 7 be assessed shall be calculated in accordance with the methods 8 provided herein, except that any references to six percent 9 in this subsection shall be four percent. For valuations 10 established as of January 1, 1981, and each year thereafter, 11 the percentage of actual value at which property valued by 12 the department of revenue pursuant to chapters 428 , 433 , 437 , 13 and 438 shall be assessed shall be calculated in accordance 14 with the methods provided herein, except that any references 15 to ten percent in this subsection shall be eight percent. 16 Beginning with valuations established as of January 1, 1979, 17 and each assessment year thereafter beginning before January 18 1, 2013 , property valued by the department of revenue pursuant 19 to chapter 434 shall also be assessed at a percentage of its 20 actual value which percentage shall be equal to the percentage 21 determined by the director of revenue for commercial property, 22 industrial property, or property valued by the department of 23 revenue pursuant to chapters 428 , 433 , 437 , and 438 , whichever 24 is lowest. For valuations established on or after January 1, 25 2013, property valued by the department of revenue pursuant to 26 chapter 434 shall be assessed at a percentage of its actual 27 value equal to the percentage of actual value at which property 28 assessed as commercial property is assessed for the same 29 assessment year. 30 b. (1) For valuations established on or after January 1, 31 2013, commercial property, excluding properties referred to in 32 section 427A.1, subsection 8, shall be assessed as a percentage 33 of its actual value, as determined in this paragraph “b” . 34 For valuations established for the assessment year beginning 35 -6- LSB 5399XL (11) 84 md/sc 6/ 37

S.F. _____ H.F. _____ January 1, 2013, the percentage of actual value as equalized by 1 the director of revenue as provided in section 441.49 at which 2 commercial property shall be assessed shall be ninety-five 3 percent. For valuations established for the assessment year 4 beginning January 1, 2014, the percentage of actual value as 5 equalized by the director of revenue as provided in section 6 441.49 at which commercial property shall be assessed shall be 7 ninety percent. For valuations established for the assessment 8 year beginning January 1, 2015, the percentage of actual value 9 as equalized by the director of revenue as provided in section 10 441.49 at which commercial property shall be assessed shall be 11 eighty-five percent. 12 (2) For valuations established for the assessment year 13 beginning January 1, 2016, and each assessment year thereafter, 14 the percentage of actual value as equalized by the director 15 of revenue as provided in section 441.49 at which commercial 16 property shall be assessed shall be the percentage of actual 17 value that commercial property was assessed in the previous 18 assessment year, unless the statewide commercial and industrial 19 property valuation growth condition under section 441.21A, 20 subsection 1, is satisfied and the state appropriation 21 under section 441.21A, subsection 1, for the fiscal year in 22 which taxes from the assessment year are due and payable is 23 not otherwise reduced by law. If such statewide valuation 24 growth and state appropriation conditions are satisfied, the 25 percentage of actual value as equalized by the director of 26 revenue as provided in section 441.49 at which commercial 27 property shall be assessed shall be the percentage of actual 28 value that commercial property was assessed in the previous 29 assessment year minus five percentage points. However, for any 30 assessment year, the percentage of actual value shall not be 31 less than sixty percent. 32 c. (1) For valuations established on or after January 1, 33 2013, industrial property, excluding properties referred to in 34 section 427A.1, subsection 8, shall be assessed as a percentage 35 -7- LSB 5399XL (11) 84 md/sc 7/ 37

S.F. _____ H.F. _____ of its actual value, as determined in this paragraph “c” . 1 For valuations established for the assessment year beginning 2 January 1, 2013, the percentage of actual value as equalized by 3 the director of revenue as provided in section 441.49 at which 4 industrial property shall be assessed shall be ninety-five 5 percent. For valuations established for the assessment year 6 beginning January 1, 2014, the percentage of actual value as 7 equalized by the director of revenue as provided in section 8 441.49 at which industrial property shall be assessed shall be 9 ninety percent. For valuations established for the assessment 10 year beginning January 1, 2015, the percentage of actual value 11 as equalized by the director of revenue as provided in section 12 441.49 at which industrial property shall be assessed shall be 13 eighty-five percent. 14 (2) For valuations established for the assessment year 15 beginning January 1, 2016, and each assessment year thereafter, 16 the percentage of actual value as equalized by the director 17 of revenue as provided in section 441.49 at which industrial 18 property shall be assessed shall be the percentage of actual 19 value that industrial property was assessed in the previous 20 assessment year, unless the statewide commercial and industrial 21 property valuation growth condition under section 441.21A, 22 subsection 1, is satisfied and the state appropriation 23 under section 441.21A, subsection 1, for the fiscal year in 24 which taxes from the assessment year are due and payable is 25 not otherwise reduced by law. If such statewide valuation 26 growth and state appropriation conditions are satisfied, the 27 percentage of actual value as equalized by the director of 28 revenue as provided in section 441.49 at which industrial 29 property shall be assessed shall be the percentage of actual 30 value that industrial property was assessed in the previous 31 assessment year minus five percentage points. However, for any 32 assessment year, the percentage of actual value shall not be 33 less than sixty percent. 34 Sec. 6. NEW SECTION . 441.21A Commercial and industrial 35 -8- LSB 5399XL (11) 84 md/sc 8/ 37

S.F. _____ H.F. _____ property tax replacement fund —— replacement claims. 1 1. a. The commercial and industrial property tax 2 replacement fund is created in the state treasury under 3 the control of the department of revenue for the payment of 4 commercial and industrial property tax replacement claims in 5 fiscal years beginning on or after July 1, 2014. 6 b. For the fiscal year beginning July 1, 2014, there 7 is appropriated from the general fund of the state to the 8 department of revenue to be credited to the fund, fifty million 9 dollars. 10 c. For fiscal years beginning on or after July 1, 2015, 11 there is annually appropriated from the general fund of the 12 state to the department of revenue to be credited to the fund 13 an amount equal to the amount of the appropriation to the fund 14 required under this subsection for the previous fiscal year, 15 unless the total statewide actual value of all commercial and 16 industrial property for the budget assessment year exceeds one 17 hundred four percent of the total statewide actual value of all 18 commercial and industrial property in the base assessment year. 19 If such an increase in the statewide actual value of commercial 20 and industrial property occurs for the budget assessment year, 21 the amount of the appropriation shall instead be an amount 22 equal to the sum of the amount of the appropriation to the fund 23 required under this subsection for the previous fiscal year 24 plus one of the following amounts: 25 (1) Fifty million dollars, if the amount of the 26 appropriation required under this subsection for the previous 27 fiscal year was less than one hundred fifty million dollars. 28 (2) Thirty million dollars, if the amount of the 29 appropriation required under this subsection for the previous 30 fiscal year was greater than or equal to one hundred fifty 31 million dollars, but less than two hundred forty million 32 dollars. 33 (3) Zero dollars, if the amount of the appropriation 34 required under this subsection for the previous fiscal year was 35 -9- LSB 5399XL (11) 84 md/sc 9/ 37

S.F. _____ H.F. _____ two hundred forty million dollars. 1 d. For purposes of this section: 2 (1) “Base assessment year” means the assessment year for the 3 property taxes that were due and payable during the most recent 4 fiscal year in which there was an increase required under this 5 subsection in the appropriation to the fund. For the purposes 6 of determining a base assessment year, the appropriation for 7 the fiscal year beginning July 1, 2014, shall constitute an 8 increase required under this subsection in the appropriation 9 to the commercial and industrial property tax replacement fund 10 over the previous fiscal year. 11 (2) “Budget assessment year” means the assessment year for 12 the property taxes due and payable in the fiscal year for which 13 the appropriation is made. 14 2. Beginning with the fiscal year beginning July 1, 2014, 15 each county treasurer shall be paid from the commercial and 16 industrial property tax replacement fund an amount equal to 17 the amount of the commercial and industrial property tax 18 replacement claims in the county, as calculated in subsection 19 4. If an amount appropriated for a fiscal year is insufficient 20 to pay all replacement claims, the director of revenue 21 shall prorate the disbursements from the fund to the county 22 treasurers and shall notify the county auditors of the pro rata 23 percentage on or before September 30. Any unspent balance in 24 the fund as of June 30 of each year shall revert to the general 25 fund of the state as provided by section 8.33. 26 3. On or before July 1 of each fiscal year beginning on 27 or after July 1, 2014, the assessor shall determine the total 28 assessed value of all commercial and industrial property 29 assessed for taxes due and payable in that fiscal year and the 30 total assessed value of such property assessed as of January 1, 31 2012, and shall report the valuations to the county auditor. 32 4. On or before September 1 of each fiscal year beginning 33 on or after July 1, 2014, the county auditor shall prepare 34 a statement, based upon the report received pursuant to 35 -10- LSB 5399XL (11) 84 md/sc 10/ 37

S.F. _____ H.F. _____ subsection 3, listing for each taxing district in the county: 1 a. The difference between the assessed valuation of all 2 commercial and industrial property assessed for the current 3 assessment year, beginning with the assessment year beginning 4 January 1, 2013, and the assessed value of all commercial 5 and industrial property assessed as of January 1, 2012. If 6 the assessed value of all commercial and industrial property 7 assessed as of January 1, 2012, is less than the assessed 8 valuation of all commercial and industrial property for the 9 current assessment year, there is no tax replacement for that 10 taxing district for the fiscal year. 11 b. The tax levy rate for each taxing district for that 12 fiscal year. 13 c. The commercial and industrial property tax replacement 14 claim for each taxing district. For fiscal years beginning on 15 or after July 1, 2014, the replacement claim is equal to the 16 amount determined pursuant to paragraph “a” , multiplied by the 17 tax rate specified in paragraph “b” . 18 5. For purposes of computing replacement amounts under 19 this section, that portion of an urban renewal area defined as 20 the sum of the assessed valuations defined in section 403.19, 21 subsections 1 and 2, shall be considered a taxing district. 22 6. a. The county auditor shall certify and forward one copy 23 of the statement to the department of revenue not later than 24 September 1 of each year. 25 b. The replacement claims shall be paid to each county 26 treasurer in equal installments in September and March of each 27 year. The county treasurer shall apportion the replacement 28 claim payments among the eligible taxing districts in the 29 county. 30 c. If the taxing district is an urban renewal area, the 31 amount of the replacement claim shall be apportioned as 32 provided in subsection 7. 33 7. a. If the total assessed value of property located in an 34 urban renewal area taxing district for the budget assessment 35 -11- LSB 5399XL (11) 84 md/sc 11/ 37

S.F. _____ H.F. _____ year is equal to or more than that portion of such valuation 1 defined in section 403.19, subsection 1, the total replacement 2 claim amount computed pursuant to subsection 4 shall be 3 credited to that portion of the assessed value defined in 4 section 403.19, subsection 2. 5 b. If the total assessed value of the property located in an 6 urban renewal area taxing district for the budget assessment 7 year is less than that portion of such valuation defined in 8 section 403.19, subsection 1, the replacement amount shall be 9 credited to those portions of the assessed value defined in 10 section 403.19, subsections 1 and 2, as follows: 11 (1) To that portion defined in section 403.19, subsection 12 1, an amount equal to the amount that would be produced by 13 multiplying the applicable consolidated levy rate times the 14 difference between the assessed value of the taxable property 15 defined in section 403.19, subsection 1, and the total assessed 16 value of the property located in the urban renewal area 17 taxing district in the budget assessment year for which the 18 replacement claim is computed. 19 (2) To that portion defined in section 403.19, subsection 2, 20 the remaining amount, if any. 21 c. Notwithstanding the allocation provisions of paragraphs 22 “a” and “b” , the amount of the tax replacement amount that shall 23 be allocated to that portion of the assessed value defined 24 in section 403.19, subsection 2, shall not exceed the amount 25 equal to the amount certified to the county auditor under 26 section 403.19 for the budget year in which the claim is paid, 27 after deduction of the amount of other revenues committed for 28 payment on that amount for the budget year. The amount not 29 allocated to that portion of the assessed value defined in 30 section 403.19, subsection 2, as a result of the operation of 31 this paragraph, shall be allocated to that portion of assessed 32 value defined in section 403.19, subsection 1. 33 d. The amount of the replacement claim amount credited to 34 the portion of the assessed value defined in section 403.19, 35 -12- LSB 5399XL (11) 84 md/sc 12/ 37

S.F. _____ H.F. _____ subsection 1, shall be allocated to and when received be paid 1 into the fund for the respective taxing district as taxes by 2 or for the taxing district into which all other property taxes 3 are paid. The amount of the replacement claim amount credited 4 to the portion of the assessed value defined in section 403.19, 5 subsection 2, shall be allocated to and when collected be paid 6 into the special fund of the municipality under section 403.19, 7 subsection 2. 8 Sec. 7. SAVINGS PROVISION. This division of this Act, 9 pursuant to section 4.13, does not affect the operation of, 10 or prohibit the application of, prior provisions of section 11 441.21, or rules adopted under chapter 17A to administer prior 12 provisions of section 441.21, for assessment years beginning 13 before January 1, 2013, and for duties, powers, protests, 14 appeals, proceedings, actions, or remedies attributable to an 15 assessment year beginning before January 1, 2013. 16 Sec. 8. APPLICABILITY. This division of this Act applies to 17 assessment years beginning on or after January 1, 2013. 18 DIVISION II 19 COUNTY AND CITY BUDGET LIMITATION 20 Sec. 9. Section 23A.2, subsection 10, paragraph h, Code 21 2011, is amended to read as follows: 22 h. The performance of an activity listed in section 331.424 , 23 Code 2011, as a service for which a supplemental levy county 24 may be certified include in its budget . 25 Sec. 10. Section 28M.5, subsection 2, Code 2011, is amended 26 to read as follows: 27 2. If a regional transit district budget allocates 28 revenue responsibilities to the board of supervisors of a 29 participating county, the amount of the regional transit 30 district levy that is the responsibility of the participating 31 county shall be deducted from the maximum rates amount of taxes 32 authorized to be levied by the county pursuant to section 33 331.423 , subsections 1 and 2 subsection 3, paragraphs “b” 34 and “c” , as applicable, unless the county meets its revenue 35 -13- LSB 5399XL (11) 84 md/sc 13/ 37

S.F. _____ H.F. _____ responsibilities as allocated in the budget from other 1 available revenue sources. However, for a regional transit 2 district that includes a county with a population of less than 3 three hundred thousand, the amount of the regional transit 4 district levy that is the responsibility of such participating 5 county shall be deducted from the maximum rate amount of taxes 6 authorized to be levied by the county pursuant to section 7 331.423, subsection 1 3, paragraph “b” . 8 Sec. 11. Section 123.38, subsection 2, Code 2011, is amended 9 to read as follows: 10 2. Any licensee or permittee, or the licensee’s or 11 permittee’s executor or administrator, or any person duly 12 appointed by the court to take charge of and administer the 13 property or assets of the licensee or permittee for the benefit 14 of the licensee’s or permittee’s creditors, may voluntarily 15 surrender a license or permit to the division. When a license 16 or permit is surrendered the division shall notify the local 17 authority, and the division or the local authority shall 18 refund to the person surrendering the license or permit, a 19 proportionate amount of the fee received by the division or 20 the local authority for the license or permit as follows: if 21 a license or permit is surrendered during the first three 22 months of the period for which it was issued, the refund shall 23 be three-fourths of the amount of the fee; if surrendered 24 more than three months but not more than six months after 25 issuance, the refund shall be one-half of the amount of the 26 fee; if surrendered more than six months but not more than 27 nine months after issuance, the refund shall be one-fourth of 28 the amount of the fee. No refund shall be made, however, for 29 any special liquor permit, nor for a liquor control license, 30 wine permit, or beer permit surrendered more than nine months 31 after issuance. For purposes of this subsection, any portion 32 of license or permit fees used for the purposes authorized in 33 section 331.424, subsection 1 , paragraph “a” , subparagraphs 34 (1) and (2), Code 2011, and in section 331.424A , shall not be 35 -14- LSB 5399XL (11) 84 md/sc 14/ 37

S.F. _____ H.F. _____ deemed received either by the division or by a local authority. 1 No refund shall be made to any licensee or permittee, upon the 2 surrender of the license or permit, if there is at the time 3 of surrender, a complaint filed with the division or local 4 authority, charging the licensee or permittee with a violation 5 of this chapter . If upon a hearing on a complaint the license 6 or permit is not revoked or suspended, then the licensee or 7 permittee is eligible, upon surrender of the license or permit, 8 to receive a refund as provided in this section ; but if the 9 license or permit is revoked or suspended upon hearing the 10 licensee or permittee is not eligible for the refund of any 11 portion of the license or permit fee. 12 Sec. 12. Section 218.99, Code 2011, is amended to read as 13 follows: 14 218.99 Counties to be notified of patients’ personal 15 accounts. 16 The administrator in control of a state institution shall 17 direct the business manager of each institution under the 18 administrator’s jurisdiction which is mentioned in section 19 331.424, subsection 1 , paragraph “a” , subparagraphs (1) 20 and (2), and for which services are paid under section 21 331.424A , to quarterly inform the county of legal settlement’s 22 entity designated to perform the county’s central point of 23 coordination process of any patient or resident who has an 24 amount in excess of two hundred dollars on account in the 25 patients’ personal deposit fund and the amount on deposit. The 26 administrators shall direct the business manager to further 27 notify the entity designated to perform the county’s central 28 point of coordination process at least fifteen days before the 29 release of funds in excess of two hundred dollars or upon the 30 death of the patient or resident. If the patient or resident 31 has no county of legal settlement, notice shall be made to the 32 director of human services and the administrator in control of 33 the institution involved. 34 Sec. 13. Section 331.263, subsection 2, Code 2011, is 35 -15- LSB 5399XL (11) 84 md/sc 15/ 37

S.F. _____ H.F. _____ amended to read as follows: 1 2. The governing body of the community commonwealth 2 shall have the authority to levy county taxes and shall 3 have the authority to levy city taxes to the extent the 4 city tax levy authority is transferred by the charter to 5 the community commonwealth. A city participating in the 6 community commonwealth shall transfer a portion of the 7 city’s tax levy authorized under section 384.1 or 384.12 , 8 whichever is applicable, to the governing body of the community 9 commonwealth. The maximum rates amount of taxes authorized to 10 be levied under sections section 384.1 and the maximum amount 11 of taxes authorized to be levied under section 384.12 by a city 12 participating in the community commonwealth shall be reduced 13 by an amount equal to the rates of the same or similar taxes 14 levied in the city by the governing body of the community 15 commonwealth. 16 Sec. 14. Section 331.301, subsection 12, Code Supplement 17 2011, is amended to read as follows: 18 12. The board of supervisors may credit funds to a reserve 19 for the purposes authorized by subsection 11 of this section ; 20 section 331.424, subsection 1 , paragraph “a” , subparagraph 21 (6); and section 331.441, subsection 2 , paragraph “b” . Moneys 22 credited to the reserve, and interest earned on such moneys, 23 shall remain in the reserve until expended for purposes 24 authorized by subsection 11 of this section ; section 331.424, 25 subsection 1 , paragraph “a” , subparagraph (6); or section 26 331.441, subsection 2 , paragraph “b” . 27 Sec. 15. Section 331.421, subsections 1 and 10, Code 2011, 28 are amended by striking the subsections. 29 Sec. 16. Section 331.421, Code 2011, is amended by adding 30 the following new subsection: 31 NEW SUBSECTION . 7A. “Item” means a budgeted expenditure, 32 appropriation, or cash reserve from a fund for a service area, 33 program, program element, or purpose. 34 Sec. 17. Section 331.423, Code 2011, is amended by striking 35 -16- LSB 5399XL (11) 84 md/sc 16/ 37

S.F. _____ H.F. _____ the section and inserting in lieu thereof the following: 1 331.423 Property tax dollars —— maximums. 2 1. Annually, the board shall determine separate property 3 tax levy limits to pay for general county services and rural 4 county services in accordance with this section. The property 5 tax levies separately certified for general county services and 6 rural county services under section 331.434 shall not raise 7 property tax dollars that exceed the amount determined under 8 this section. 9 2. For purposes of this section and section 331.423B, unless 10 the context otherwise requires: 11 a. “Annual growth factor” means an index, expressed as 12 a percentage, determined by the department of management by 13 January 1 of the calendar year in which the budget year begins. 14 In determining the annual growth factor, the department shall 15 calculate the average of the preceding twelve-month percentage 16 change, which shall be computed on a monthly basis, in the 17 midwest consumer price index, ending with the percentage change 18 for the month of November. The department shall then add that 19 average percentage change to one hundred percent. In no case, 20 however, shall the annual growth factor exceed one hundred four 21 percent. 22 b. “Boundary adjustment” means annexation, severance, 23 incorporation, or discontinuance as those terms are defined in 24 section 368.1. 25 c. “Budget year” is the fiscal year beginning during the 26 calendar year in which a budget is certified. 27 d. “Current fiscal year” is the fiscal year ending during 28 the calendar year in which a budget is certified. 29 e. “Net new valuation taxes” means the amount of property 30 tax dollars equal to the current fiscal year’s levy rate in 31 the county for general county services or for rural county 32 services, as applicable, multiplied by the increase from the 33 current fiscal year to the budget year in taxable valuation due 34 to the following: 35 -17- LSB 5399XL (11) 84 md/sc 17/ 37