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