House File 119 - Introduced HOUSE FILE 119 BY BOSSMAN A BILL FOR An Act relating to the calculation and allocation of adjusted 1 additional property tax levy aid for school districts and 2 including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1867YH (3) 88 md/jh

H.F. 119 Section 1. Section 257.4, subsection 1, paragraph b, Code 1 2019, is amended to read as follows: 2 b. For the budget year beginning July 1, 2008, and 3 succeeding budget years, the department of management shall 4 annually determine an adjusted additional property tax levy 5 and a statewide maximum adjusted additional property tax levy 6 rate , not to exceed the statewide average additional property 7 tax levy rate, calculated by dividing the total adjusted 8 additional property tax levy dollars statewide by the statewide 9 total net taxable valuation that is not less than the lowest 10 adjusted additional property tax levy rate among all school 11 districts in the state . For purposes of this paragraph, the 12 adjusted additional property tax levy shall be that portion of 13 the additional property tax levy corresponding to the state 14 cost per pupil multiplied by a school district’s weighted 15 enrollment, and then multiplied by one hundred percent less the 16 regular program foundation base per pupil percentage pursuant 17 to section 257.1 , and then reduced by the amount of the 18 property tax replacement payment to be received under section 19 257.16B . The district shall receive adjusted additional 20 property tax levy aid in an amount equal to the difference 21 between the adjusted additional property tax levy rate and 22 the statewide maximum adjusted additional property tax levy 23 rate, as applied per thousand dollars of assessed valuation on 24 all taxable property in the district. The statewide maximum 25 adjusted additional property tax levy rate shall be annually 26 determined by the department taking into account amounts 27 allocated pursuant to section 257.15, subsection 4 , and the 28 balance of the property tax equity and relief fund created in 29 section 257.16A at the end of the calendar year. 30 Sec. 2. APPLICABILITY. This Act applies July 1, 2020, for 31 school budget years beginning on or after that date. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -1- LSB 1867YH (3) 88 md/jh 1/ 2

H.F. 119 Annually, $24 million and the balance of the property tax 1 equity and relief fund are appropriated to provide adjusted 2 additional property tax levy aid to school districts in an 3 amount equal to the difference between the adjusted additional 4 property tax levy rate and the statewide maximum adjusted 5 additional property tax levy rate, as calculated by the 6 department of management. Current law provides that the 7 statewide maximum adjusted additional property tax levy rate 8 is calculated using the amounts appropriated, but not to 9 exceed the statewide average additional property tax levy rate 10 calculated by dividing the total adjusted additional property 11 tax levy dollars statewide by the statewide total net taxable 12 valuation. This bill provides that the statewide maximum 13 adjusted additional property tax levy rate, as calculated by 14 the department of management, shall instead not be less than 15 the lowest adjusted additional property tax levy rate among all 16 school districts in the state. Accordingly, the bill allows 17 for lowering all school district adjusted additional property 18 tax levy rates to the lowest adjusted additional property tax 19 levy rate among all school districts in the state if sufficient 20 funding is appropriated. 21 The bill applies July 1, 2020, for school budget years 22 beginning on or after that date. 23 -2- LSB 1867YH (3) 88 md/jh 2/ 2