House
Study
Bill
165
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
HEIN)
A
BILL
FOR
An
Act
establishing
budget
limitations
for
counties
and
cities
1
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
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_____
Section
1.
Section
23A.2,
subsection
10,
paragraph
h,
Code
1
2019,
is
amended
to
read
as
follows:
2
h.
The
performance
of
an
activity
listed
in
section
331.424
,
3
Code
2019,
as
a
service
for
which
a
supplemental
levy
county
4
may
be
certified
include
in
its
budget
.
5
Sec.
2.
Section
28M.5,
subsection
2,
Code
2019,
is
amended
6
to
read
as
follows:
7
2.
If
a
regional
transit
district
budget
allocates
8
revenue
responsibilities
to
the
board
of
supervisors
of
a
9
participating
county,
the
amount
of
the
regional
transit
10
district
levy
that
is
the
responsibility
of
the
participating
11
county
shall
be
deducted
from
the
maximum
rates
amount
of
taxes
12
authorized
to
be
levied
by
the
county
pursuant
to
section
13
331.423,
subsections
1
and
2
subsection
3,
paragraphs
“b”
14
and
“c”
,
as
applicable,
unless
the
county
meets
its
revenue
15
responsibilities
as
allocated
in
the
budget
from
other
16
available
revenue
sources.
However,
for
a
regional
transit
17
district
that
includes
a
county
with
a
population
of
less
than
18
three
hundred
thousand,
the
amount
of
the
regional
transit
19
district
levy
that
is
the
responsibility
of
such
participating
20
county
shall
be
deducted
from
the
maximum
rate
amount
of
taxes
21
authorized
to
be
levied
by
the
county
pursuant
to
section
22
331.423,
subsection
1
3,
paragraph
“b”
.
23
Sec.
3.
Section
29C.17,
subsection
2,
paragraph
a,
Code
24
2019,
is
amended
to
read
as
follows:
25
a.
A
countywide
special
supplemental
levy
pursuant
to
26
section
331.424,
subsection
1
.
27
Sec.
4.
Section
123.38,
subsection
2,
paragraph
b,
Code
28
2019,
is
amended
to
read
as
follows:
29
b.
For
purposes
of
this
subsection
,
any
portion
of
license
30
or
permit
fees
used
for
the
purposes
authorized
in
section
31
331.424,
subsection
1
,
paragraph
“a”
,
subparagraphs
(1)
and
32
(2),
Code
2019,
and
in
section
331.424A
,
shall
not
be
deemed
33
received
either
by
the
division
or
by
a
local
authority.
34
Sec.
5.
Section
218.99,
Code
2019,
is
amended
to
read
as
35
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follows:
1
218.99
Counties
to
be
notified
of
patients’
personal
2
accounts.
3
The
administrator
in
control
of
a
state
institution
shall
4
direct
the
business
manager
of
each
institution
under
the
5
administrator’s
jurisdiction
which
is
mentioned
in
section
6
331.424,
subsection
1
,
paragraph
“a”
,
subparagraphs
(1)
and
7
(2),
and
for
which
services
are
paid
under
section
331.424A
,
8
to
quarterly
inform
the
county
of
residence
of
any
patient
or
9
resident
who
has
an
amount
in
excess
of
two
hundred
dollars
on
10
account
in
the
patients’
personal
deposit
fund
and
the
amount
11
on
deposit.
The
administrators
shall
direct
the
business
12
manager
to
further
notify
the
county
of
residence
at
least
13
fifteen
days
before
the
release
of
funds
in
excess
of
two
14
hundred
dollars
or
upon
the
death
of
the
patient
or
resident.
15
If
the
patient
or
resident
has
no
residency
in
this
state
or
16
the
person’s
residency
is
unknown,
notice
shall
be
made
to
the
17
director
of
human
services
and
the
administrator
in
control
of
18
the
institution
involved.
19
Sec.
6.
Section
331.263,
subsection
2,
Code
2019,
is
amended
20
to
read
as
follows:
21
2.
The
governing
body
of
the
community
commonwealth
22
shall
have
the
authority
to
levy
county
taxes
and
shall
23
have
the
authority
to
levy
city
taxes
to
the
extent
the
24
city
tax
levy
authority
is
transferred
by
the
charter
to
25
the
community
commonwealth.
A
city
participating
in
the
26
community
commonwealth
shall
transfer
a
portion
of
the
27
city’s
tax
levy
authorized
under
section
384.1
or
384.12
,
28
whichever
is
applicable,
to
the
governing
body
of
the
community
29
commonwealth.
The
maximum
rates
amount
of
taxes
authorized
to
30
be
levied
under
sections
section
384.1
and
the
maximum
amount
31
of
taxes
authorized
to
be
levied
under
section
384.12
by
a
city
32
participating
in
the
community
commonwealth
shall
be
reduced
33
by
an
amount
equal
to
the
rates
of
the
same
or
similar
taxes
34
levied
in
the
city
by
the
governing
body
of
the
community
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_____
commonwealth.
1
Sec.
7.
Section
331.301,
subsection
12,
Code
2019,
is
2
amended
to
read
as
follows:
3
12.
The
board
of
supervisors
may
credit
funds
to
a
reserve
4
for
the
purposes
authorized
by
subsection
11
of
this
section
;
5
section
331.424,
subsection
1
,
paragraph
“a”
,
subparagraph
6
(5);
and
section
331.441,
subsection
2
,
paragraph
“b”
.
Moneys
7
credited
to
the
reserve,
and
interest
earned
on
such
moneys,
8
shall
remain
in
the
reserve
until
expended
for
purposes
9
authorized
by
subsection
11
of
this
section
;
section
331.424,
10
subsection
1
,
paragraph
“a”
,
subparagraph
(5);
or
section
11
331.441,
subsection
2
,
paragraph
“b”
.
12
Sec.
8.
Section
331.421,
subsections
1
and
10,
Code
2019,
13
are
amended
by
striking
the
subsections.
14
Sec.
9.
Section
331.421,
Code
2019,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
7A.
“Item”
means,
in
accordance
17
with
protests
under
chapter
24,
a
budgeted
expenditure,
18
appropriation,
or
cash
reserve
from
a
fund
for
a
service
area,
19
program,
program
element,
or
purpose.
20
Sec.
10.
Section
331.422,
unnumbered
paragraph
1,
Code
21
2019,
is
amended
to
read
as
follows:
22
Subject
to
this
section
and
sections
331.423
through
331.426
23
331.424C
or
as
otherwise
provided
by
state
law,
the
board
of
24
each
county
shall
certify
property
taxes
annually
at
its
March
25
session
to
be
levied
for
county
purposes
as
follows:
26
Sec.
11.
Section
331.423,
Code
2019,
is
amended
by
striking
27
the
section
and
inserting
in
lieu
thereof
the
following:
28
331.423
Property
tax
dollars
——
maximums.
29
1.
Annually,
the
board
shall
determine
separate
property
30
tax
levy
limits
to
pay
for
general
county
services
and
rural
31
county
services
in
accordance
with
this
section.
The
property
32
tax
levies
separately
certified
for
general
county
services
and
33
rural
county
services
under
section
331.434
shall
not
raise
34
property
tax
dollars
that
exceed
the
amount
determined
under
35
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this
section.
1
2.
For
purposes
of
this
section,
unless
the
context
2
otherwise
requires:
3
a.
“Annual
growth
factor”
means
an
index,
expressed
as
4
a
percentage,
determined
by
the
department
of
management
by
5
January
1
of
the
calendar
year
in
which
the
budget
year
begins.
6
In
determining
the
annual
growth
factor,
the
department
shall
7
calculate
the
percentage
change
in
the
median
family
income
8
in
midwest
census
region
between
the
two
most
recent
calendar
9
years
for
which
information
is
available.
The
department
shall
10
then
add
that
percentage
change
to
one
hundred
percent.
In
no
11
case,
however,
shall
the
annual
growth
factor
be
less
than
one
12
hundred
percent.
13
b.
“Boundary
adjustment”
means
annexation,
severance,
14
incorporation,
or
discontinuance
as
those
terms
are
defined
in
15
section
368.1.
16
c.
“Budget
year”
is
the
fiscal
year
beginning
during
the
17
calendar
year
in
which
a
budget
is
certified.
18
d.
“Current
fiscal
year”
is
the
fiscal
year
ending
during
19
the
calendar
year
in
which
a
budget
is
certified.
20
e.
“Net
new
valuation
taxes”
means
the
amount
of
property
21
tax
dollars
equal
to
the
current
fiscal
year’s
levy
rate
in
22
the
county
for
general
county
services
or
for
rural
county
23
services,
as
applicable,
multiplied
by
the
increase
from
the
24
current
fiscal
year
to
the
budget
year
in
taxable
valuation
due
25
to
the
following:
26
(1)
Net
new
construction,
excluding
all
incremental
27
valuation
that
is
released
in
any
one
year
from
either
a
28
division
of
revenue
under
section
260E.4
or
an
urban
renewal
29
area
for
which
taxes
were
being
divided
under
section
403.19
if
30
the
property
for
the
valuation
being
released
remains
subject
31
to
the
division
of
revenue
under
section
260E.4
or
remains
part
32
of
the
urban
renewal
area
that
is
subject
to
a
division
of
33
revenue
under
section
403.19.
34
(2)
Additions
or
improvements
to
existing
structures.
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(3)
Remodeling
of
existing
structures
for
which
a
building
1
permit
is
required.
2
(4)
Net
boundary
adjustment.
3
(5)
A
municipality
no
longer
dividing
tax
revenues
in
an
4
urban
renewal
area
as
provided
in
section
403.19
or
a
community
5
college
no
longer
dividing
revenues
as
provided
in
section
6
260E.4.
7
(6)
That
portion
of
taxable
property
located
in
an
urban
8
revitalization
area
on
which
an
exemption
was
allowed
and
such
9
exemption
has
expired.
10
3.
a.
For
the
fiscal
year
beginning
July
1,
2020,
and
11
subsequent
fiscal
years,
the
maximum
amount
of
property
tax
12
dollars
which
may
be
certified
for
levy
by
a
county
for
general
13
county
services
and
rural
county
services
shall
be
the
maximum
14
property
tax
dollars
calculated
under
paragraphs
“b”
and
“c”
,
15
respectively.
16
b.
The
maximum
property
tax
dollars
that
may
be
levied
for
17
general
county
services
is
an
amount
equal
to
the
sum
of
the
18
following:
19
(1)
The
annual
growth
factor
times
the
current
fiscal
year’s
20
maximum
property
tax
dollars
for
general
county
services.
21
(2)
The
amount
of
net
new
valuation
taxes
in
the
county.
22
c.
The
maximum
property
tax
dollars
that
may
be
levied
for
23
rural
county
services
is
an
amount
equal
to
the
sum
of
the
24
following:
25
(1)
The
annual
growth
factor
times
the
current
fiscal
year’s
26
maximum
property
tax
dollars
for
rural
county
services.
27
(2)
The
amount
of
net
new
valuation
taxes
in
the
28
unincorporated
area
of
the
county.
29
4.
a.
For
purposes
of
calculating
maximum
property
tax
30
dollars
for
general
county
services
for
the
fiscal
year
31
beginning
July
1,
2020,
only,
the
term
“current
fiscal
year’s
32
maximum
property
tax
dollars”
shall
mean
the
total
amount
of
33
property
tax
dollars
certified
by
the
county
for
general
county
34
services
for
the
fiscal
year
beginning
July
1,
2019.
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b.
For
purposes
of
calculating
maximum
property
tax
dollars
1
for
rural
county
services
for
the
fiscal
year
beginning
July
2
1,
2020,
only,
the
term
“current
fiscal
year’s
maximum
property
3
tax
dollars”
shall
mean
the
total
amount
of
property
tax
dollars
4
certified
by
the
county
for
rural
county
services
for
the
5
fiscal
year
beginning
July
1,
2019.
6
5.
Property
taxes
certified
for
mental
health
and
7
disabilities
services
in
section
331.424A,
the
emergency
8
services
fund
in
section
331.424C,
the
debt
service
fund
in
9
section
331.430,
any
capital
projects
fund
established
by
the
10
county
for
deposit
of
bond,
loan,
or
note
proceeds,
and
any
11
temporary
increase
approved
pursuant
to
section
331.424,
are
12
not
included
in
the
maximum
amount
of
property
tax
dollars
that
13
may
be
certified
for
a
budget
year
under
subsection
3.
14
6.
The
department
of
management,
in
consultation
with
the
15
county
finance
committee,
shall
adopt
rules
to
administer
this
16
section.
The
department
shall
prescribe
forms
to
be
used
by
17
counties
when
making
calculations
required
by
this
section.
18
Sec.
12.
NEW
SECTION
.
331.423A
Ending
fund
balance.
19
1.
a.
Budgeted
ending
fund
balances
for
a
budget
year
20
in
excess
of
twenty-five
percent
of
budgeted
expenditures
in
21
either
the
general
fund
or
rural
services
fund
for
that
budget
22
year
shall
be
explicitly
reserved
or
designated
for
a
specific
23
purpose.
24
b.
A
county
is
encouraged,
but
not
required,
to
reduce
25
budgeted,
unreserved,
or
undesignated
ending
fund
balances
for
26
the
budget
year
to
an
amount
equal
to
approximately
twenty-five
27
percent
of
budgeted
expenditures
and
transfers
from
the
general
28
fund
and
rural
services
fund
for
that
budget
year
unless
a
29
decision
is
certified
by
the
state
appeal
board
ordering
a
30
reduction
in
the
ending
fund
balance
of
any
of
those
funds.
31
c.
In
a
protest
to
the
county
budget
under
section
331.436,
32
the
county
shall
have
the
burden
of
proving
that
the
budgeted
33
balances
in
excess
of
twenty-five
percent
are
reasonably
likely
34
to
be
appropriated
for
the
explicitly
reserved
or
designated
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_____
specific
purpose.
The
excess
budgeted
balance
for
the
specific
1
purpose
shall
be
considered
an
increase
in
an
item
in
the
2
budget
for
purposes
of
section
24.28.
3
2.
a.
For
a
county
that
has,
as
of
June
30,
2019,
reduced
4
its
actual
ending
fund
balance
to
less
than
twenty-five
5
percent
of
actual
expenditures,
additional
property
taxes
may
6
be
computed
and
levied
as
provided
in
this
subsection.
The
7
additional
property
tax
levy
amount
is
an
amount
not
to
exceed
8
twenty-five
percent
of
actual
expenditures
from
the
general
9
fund
and
rural
services
fund
for
the
fiscal
year
beginning
July
10
1,
2018,
minus
the
combined
ending
fund
balances
for
those
11
funds
for
that
year.
12
b.
The
amount
of
the
additional
property
taxes
shall
be
13
apportioned
between
the
general
fund
and
the
rural
services
14
fund.
However,
the
amount
apportioned
for
general
county
15
services
and
for
rural
county
services
shall
not
exceed
for
16
each
fund
twenty-five
percent
of
actual
expenditures
for
the
17
fiscal
year
beginning
July
1,
2018.
18
c.
All
or
a
portion
of
additional
property
tax
dollars
19
may
be
levied
for
the
purpose
of
increasing
cash
reserves
20
for
general
county
services
and
rural
county
services
in
the
21
budget
year.
The
additional
property
tax
dollars
authorized
22
under
this
subsection
but
not
levied
may
be
carried
forward
as
23
unused
ending
fund
balance
taxing
authority
until
and
for
the
24
fiscal
year
beginning
July
1,
2025.
The
amount
carried
forward
25
shall
not
exceed
twenty-five
percent
of
the
maximum
amount
of
26
property
tax
dollars
available
in
the
current
fiscal
year.
27
Additionally,
property
taxes
that
are
levied
as
unused
ending
28
fund
balance
taxing
authority
under
this
subsection
may
be
the
29
subject
of
a
protest
under
section
331.436,
and
the
amount
30
will
be
considered
an
increase
in
an
item
in
the
budget
for
31
purposes
of
section
24.28.
The
amount
of
additional
property
32
taxes
levied
under
this
subsection
shall
not
be
included
in
the
33
computation
of
the
maximum
amount
of
property
tax
dollars
which
34
may
be
certified
and
levied
under
section
331.423.
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_____
Sec.
13.
Section
331.424,
Code
2019,
is
amended
by
striking
1
the
section
and
inserting
in
lieu
thereof
the
following:
2
331.424
Authority
to
levy
beyond
maximum
property
tax
3
dollars.
4
1.
a.
The
board
may
annually
certify
additions
to
the
5
maximum
amount
of
property
tax
dollars
to
be
levied
if
the
6
board
publishes
the
notice
of
the
proposed
action,
including
a
7
statement
of
the
amount
and
purpose
of
the
proposed
additions,
8
and
the
time
and
place
of
a
public
meeting
at
which
the
board
9
proposes
to
take
action
on
the
proposal.
At
the
meeting,
10
the
board
shall
receive
oral
or
written
objections
from
any
11
resident
or
property
owner
of
the
county.
After
all
objections
12
have
been
received
and
considered,
the
board
may,
following
13
twenty
days
after
the
meeting
and
subject
to
paragraph
“b”
,
take
14
action
on
the
proposal
or
abandon
the
proposal.
15
b.
If
at
any
time
within
twenty
days
after
the
meeting
under
16
paragraph
“a”
,
a
petition
is
filed
with
the
county
auditor
17
signed
by
eligible
electors
of
the
county
equal
in
number
to
18
the
lesser
of
two
thousand
or
twenty
percent
of
the
persons
19
in
the
county
who
voted
for
the
office
of
president
of
the
20
United
States
at
the
last
preceding
general
election
that
21
had
such
office
on
the
ballot,
asking
that
the
question
of
22
levying
an
additional
amount
be
submitted
to
the
registered
23
voters
of
the
county,
the
board
shall
either
by
resolution
24
declare
the
proposal
to
be
abandoned
or
shall
direct
the
county
25
commissioner
of
elections
to
call
a
special
election
upon
the
26
question.
27
2.
The
special
election,
if
called,
is
subject
to
the
28
following:
29
a.
The
board
must
give
at
least
thirty-two
days’
notice
to
30
the
county
commissioner
of
elections
that
the
special
election
31
is
to
be
held.
In
no
case,
however,
shall
a
notice
be
given
to
32
the
county
commissioner
of
elections
after
December
31
for
an
33
election
on
a
proposition
to
exceed
the
statutory
limits
during
34
the
fiscal
year
beginning
in
the
next
calendar
year.
35
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_____
b.
The
proposition
submitted
to
voters
may
propose
authority
1
for
the
board
to
certify
additions
to
the
maximum
amount
2
of
property
tax
dollars
for
up
to
two
fiscal
years.
The
3
proposition
is
approved
if
it
receives
a
favorable
majority
of
4
the
votes
cast
on
the
proposition.
5
c.
The
proposition
to
be
submitted
shall
be
substantially
6
in
the
following
form:
7
Vote
“yes”
or
“no”
on
the
following:
8
Shall
the
county
of
........
levy
for
an
additional
$
...
each
9
year
for
...
years
beginning
July
1,
....
,
in
excess
of
the
10
statutory
limits
otherwise
applicable
for
the
(general
county
11
services
or
rural
services)
fund?
12
d.
The
canvass
shall
be
held
beginning
at
1:00
p.m.
on
13
the
second
day
which
is
not
a
holiday
following
the
special
14
election.
15
e.
Notice
of
the
special
election
shall
be
published
at
16
least
once
in
a
newspaper
as
specified
in
section
331.305
prior
17
to
the
date
of
the
special
election.
The
notice
shall
appear
18
as
early
as
practicable
after
the
board
has
voted
to
submit
19
a
proposition
to
the
voters
to
levy
additional
property
tax
20
dollars.
21
3.
Registered
voters
in
the
county
may
vote
on
the
22
proposition
to
increase
property
taxes
for
the
general
fund
23
in
excess
of
the
statutory
limit.
Registered
voters
residing
24
outside
the
corporate
limits
of
a
city
within
the
county
may
25
vote
on
the
proposition
to
increase
property
taxes
for
the
26
rural
services
fund
in
excess
of
the
statutory
limit.
27
4.
The
amount
of
additional
property
tax
dollars
certified
28
under
this
section
shall
not
be
included
in
the
computation
29
of
the
maximum
amount
of
property
tax
dollars
which
may
be
30
certified
and
levied
under
section
331.423.
31
Sec.
14.
Section
331.424A,
subsection
6,
Code
2019,
is
32
amended
to
read
as
follows:
33
6.
For
each
fiscal
year,
the
county
shall
certify
a
levy
34
for
payment
of
services.
For
each
fiscal
year,
county
revenues
35
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_____
from
taxes
imposed
by
the
county
credited
to
the
county
1
services
fund
shall
not
exceed
an
amount
equal
to
the
county
2
budgeted
amount
for
the
fiscal
year.
A
levy
certified
under
3
this
section
is
not
subject
to
the
appeal
provisions
of
section
4
331.426
or
to
any
other
provision
in
law
authorizing
a
county
5
to
exceed,
increase,
or
appeal
a
property
tax
levy
limit.
6
Sec.
15.
Section
331.427,
subsection
3,
paragraph
l,
Code
7
2019,
is
amended
to
read
as
follows:
8
l.
Services
listed
in
section
331.424,
subsection
1
,
Code
9
2019,
and
section
331.554
.
10
Sec.
16.
Section
331.428,
subsection
2,
paragraph
d,
Code
11
2019,
is
amended
to
read
as
follows:
12
d.
Services
listed
under
section
331.424,
subsection
2
,
Code
13
2019
.
14
Sec.
17.
Section
331.429,
subsection
1,
paragraphs
a
and
b,
15
Code
2019,
are
amended
to
read
as
follows:
16
a.
Transfers
from
the
general
fund
not
to
exceed
in
any
year
17
the
dollar
equivalent
of
a
tax
of
sixteen
and
seven-eighths
18
cents
per
thousand
dollars
of
assessed
value
on
all
taxable
19
property
in
the
county
multiplied
by
the
ratio
of
current
20
taxes
actually
collected
and
apportioned
for
the
general
basic
21
county
services
levy
to
the
total
general
basic
county
services
22
levy
for
the
current
year,
and
an
amount
equivalent
to
the
23
moneys
derived
by
the
general
fund
from
military
service
tax
24
credits
under
chapter
426A
,
manufactured
or
mobile
home
taxes
25
under
section
435.22
,
and
delinquent
taxes
for
prior
years
26
collected
and
apportioned
to
the
general
basic
county
services
27
fund
in
the
current
year,
multiplied
by
the
ratio
of
sixteen
28
and
seven-eighths
cents
to
three
dollars
and
fifty
cents.
29
The
limit
on
transfers
in
this
paragraph
applies
only
to
30
property
tax
revenue
and
is
not
a
limit
on
transfers
of
revenue
31
generated
from
sources
other
than
property
taxes.
32
b.
Transfers
from
the
rural
services
fund
not
to
exceed
in
33
any
year
the
dollar
equivalent
of
a
tax
of
three
dollars
and
34
three-eighths
cents
per
thousand
dollars
of
assessed
value
on
35
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_____
all
taxable
property
not
located
within
the
corporate
limits
1
of
a
city
in
the
county
multiplied
by
the
ratio
of
current
2
taxes
actually
collected
and
apportioned
for
the
rural
county
3
services
basic
levy
to
the
total
rural
county
services
basic
4
levy
for
the
current
year
and
an
amount
equivalent
to
the
5
moneys
derived
by
the
rural
services
fund
from
military
service
6
tax
credits
under
chapter
426A
,
manufactured
or
mobile
home
7
taxes
under
section
435.22
,
and
delinquent
taxes
for
prior
8
years
collected
and
apportioned
to
the
rural
county
services
9
basic
fund
in
the
current
year,
multiplied
by
the
ratio
of
10
three
dollars
and
three-eighths
cents
to
three
dollars
and
11
ninety-five
cents.
The
limit
on
transfers
in
this
paragraph
12
applies
only
to
property
tax
revenue
and
is
not
a
limit
on
13
transfers
of
revenue
generated
from
sources
other
than
property
14
taxes.
15
Sec.
18.
Section
331.434,
unnumbered
paragraph
1,
Code
16
2019,
is
amended
to
read
as
follows:
17
Annually,
the
board
of
each
county,
subject
to
section
18
331.403,
subsection
4
,
sections
331.423
through
331.426
19
331.424C
,
and
other
applicable
state
law,
shall
prepare
and
20
adopt
a
budget,
certify
taxes,
and
provide
appropriations
as
21
follows:
22
Sec.
19.
Section
331.435,
unnumbered
paragraph
1,
Code
23
2019,
is
amended
to
read
as
follows:
24
The
board
may
amend
the
adopted
county
budget,
subject
to
25
sections
331.423
through
331.426
331.424C
and
other
applicable
26
state
law,
to
permit
increases
in
any
class
of
proposed
27
expenditures
contained
in
the
budget
summary
published
under
28
section
331.434,
subsection
3
.
29
Sec.
20.
Section
373.10,
Code
2019,
is
amended
to
read
as
30
follows:
31
373.10
Taxing
authority.
32
The
metropolitan
council
shall
have
the
authority
to
33
levy
city
taxes
to
the
extent
the
city
tax
levy
authority
34
is
transferred
by
the
charter
to
the
metropolitan
council.
35
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_____
A
member
city
shall
transfer
a
portion
of
the
city’s
tax
1
levy
authorized
under
section
384.1
or
384.12
,
whichever
is
2
applicable,
to
the
metropolitan
council.
The
maximum
rates
3
amount
of
taxes
authorized
to
be
levied
under
sections
section
4
384.1
and
the
taxes
authorized
to
be
levied
under
section
5
384.12
by
a
member
city
shall
be
reduced
by
an
amount
equal
to
6
the
rates
of
the
same
or
similar
taxes
levied
in
the
city
by
the
7
metropolitan
council.
8
Sec.
21.
Section
384.1,
Code
2019,
is
amended
by
striking
9
the
section
and
inserting
in
lieu
thereof
the
following:
10
384.1
Property
tax
dollars
——
maximum.
11
1.
A
city
shall
certify
taxes
to
be
levied
by
the
city
12
on
all
taxable
property
within
the
city
limits,
for
all
city
13
government
purposes.
Annually,
the
city
council
may
certify
14
a
basic
levy
for
city
government
purposes,
subject
to
the
15
limitation
on
property
tax
dollars
provided
in
this
section.
16
2.
For
purposes
of
this
section,
unless
the
context
17
otherwise
requires:
18
a.
“Annual
growth
factor”
means
an
index,
expressed
as
19
a
percentage,
determined
by
the
department
of
management
by
20
January
1
of
the
calendar
year
in
which
the
budget
year
begins.
21
In
determining
the
annual
growth
factor,
the
department
shall
22
calculate
the
percentage
change
in
the
median
family
income
23
in
midwest
census
region
between
the
two
most
recent
calendar
24
years
for
which
information
is
available.
The
department
shall
25
then
add
that
percentage
change
to
one
hundred
percent.
In
no
26
case,
however,
shall
the
annual
growth
factor
be
less
than
one
27
hundred
percent.
28
b.
“Boundary
adjustment”
means
annexation,
severance,
29
incorporation,
or
discontinuance
as
those
terms
are
defined
in
30
section
368.1.
31
c.
“Budget
year”
is
the
fiscal
year
beginning
during
the
32
calendar
year
in
which
a
budget
is
certified.
33
d.
“Current
fiscal
year”
is
the
fiscal
year
ending
during
34
the
calendar
year
in
which
a
budget
is
certified.
35
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e.
“Net
new
valuation
taxes”
means
the
amount
of
property
1
tax
dollars
equal
to
the
current
fiscal
year’s
levy
rate
in
the
2
city
for
the
general
fund
multiplied
by
the
increase
from
the
3
current
fiscal
year
to
the
budget
year
in
taxable
valuation
due
4
to
the
following:
5
(1)
Net
new
construction,
excluding
all
incremental
6
valuation
that
is
released
in
any
one
year
from
either
a
7
division
of
revenue
under
section
260E.4
or
an
urban
renewal
8
area
for
which
taxes
were
being
divided
under
section
403.19
if
9
the
property
for
the
valuation
being
released
remains
subject
10
to
the
division
of
revenue
under
section
260E.4
or
remains
part
11
of
the
urban
renewal
area
that
is
subject
to
a
division
of
12
revenue
under
section
403.19.
13
(2)
Additions
or
improvements
to
existing
structures.
14
(3)
Remodeling
of
existing
structures
for
which
a
building
15
permit
is
required.
16
(4)
Net
boundary
adjustment.
17
(5)
A
municipality
no
longer
dividing
tax
revenues
in
an
18
urban
renewal
area
as
provided
in
section
403.19
or
a
community
19
college
no
longer
dividing
revenues
as
provided
in
section
20
260E.4.
21
(6)
That
portion
of
taxable
property
located
in
an
urban
22
revitalization
area
on
which
an
exemption
was
allowed
and
such
23
exemption
has
expired.
24
3.
a.
For
the
fiscal
year
beginning
July
1,
2020,
and
25
subsequent
fiscal
years,
the
maximum
amount
of
property
26
tax
dollars
which
may
be
certified
for
levy
by
a
city
for
27
the
general
fund
shall
be
the
maximum
property
tax
dollars
28
calculated
under
paragraph
“b”
.
29
b.
The
maximum
property
tax
dollars
that
may
be
levied
for
30
deposit
in
the
general
fund
is
an
amount
equal
to
the
sum
of
the
31
following:
32
(1)
The
annual
growth
factor
times
the
current
fiscal
year’s
33
maximum
property
tax
dollars
for
the
general
fund.
34
(2)
The
amount
of
net
new
valuation
taxes
in
the
city.
35
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4.
For
purposes
of
calculating
maximum
property
tax
dollars
1
for
the
city
general
fund
for
the
fiscal
year
beginning
July
2
1,
2020,
only,
the
term
“current
fiscal
year’s
maximum
property
3
tax
dollars”
shall
mean
the
total
amount
of
property
tax
dollars
4
certified
by
the
city
for
the
city’s
general
fund
for
the
5
fiscal
year
beginning
July
1,
2019.
6
5.
Property
taxes
certified
for
deposit
in
the
debt
service
7
fund
in
section
384.4,
trust
and
agency
funds
in
section
8
384.6,
capital
improvements
reserve
fund
in
section
384.7,
9
the
emergency
fund
in
section
384.8,
any
capital
projects
10
fund
established
by
the
city
for
deposit
of
bond,
loan,
or
11
note
proceeds,
any
temporary
increase
approved
pursuant
to
12
section
384.12A,
property
taxes
collected
from
a
voted
levy
in
13
section
384.12,
and
property
taxes
levied
under
section
384.12,
14
subsection
17,
are
not
counted
against
the
maximum
amount
of
15
property
tax
dollars
that
may
be
certified
for
a
fiscal
year
16
under
subsection
3.
17
6.
Notwithstanding
the
maximum
amount
of
taxes
a
city
18
may
certify
for
levy,
the
tax
levied
by
a
city
on
tracts
of
19
land
and
improvements
on
the
tracts
of
land
used
and
assessed
20
for
agricultural
or
horticultural
purposes
shall
not
exceed
21
three
dollars
and
three-eighths
cents
per
thousand
dollars
22
of
assessed
value
in
any
year.
Improvements
located
on
such
23
tracts
of
land
and
not
used
for
agricultural
or
horticultural
24
purposes
and
all
residential
dwellings
are
subject
to
the
same
25
rate
of
tax
levied
by
the
city
on
all
other
taxable
property
26
within
the
city.
27
7.
The
department
of
management,
in
consultation
with
the
28
city
finance
committee,
shall
adopt
rules
to
administer
this
29
section.
The
department
shall
prescribe
forms
to
be
used
by
30
cities
when
making
calculations
required
by
this
section.
31
Sec.
22.
NEW
SECTION
.
384.1A
Ending
fund
balance.
32
1.
a.
Budgeted
ending
fund
balances
for
a
budget
year
in
33
excess
of
twenty-five
percent
of
budgeted
expenditures
from
the
34
general
fund
for
that
budget
year
shall
be
explicitly
reserved
35
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or
designated
for
a
specific
purpose.
1
b.
A
city
is
encouraged,
but
not
required,
to
reduce
2
budgeted,
unreserved,
or
undesignated
ending
fund
balances
for
3
the
budget
year
to
an
amount
equal
to
approximately
twenty-five
4
percent
of
budgeted
expenditures
and
transfers
from
the
general
5
fund
for
that
budget
year
unless
a
decision
is
certified
by
6
the
state
appeal
board
ordering
a
reduction
in
the
ending
fund
7
balance
of
the
fund.
8
c.
In
a
protest
to
the
city
budget
under
section
384.19,
9
the
city
shall
have
the
burden
of
proving
that
the
budgeted
10
balances
in
excess
of
twenty-five
percent
are
reasonably
likely
11
to
be
appropriated
for
the
explicitly
reserved
or
designated
12
specific
purpose.
The
excess
budgeted
balance
for
the
specific
13
purpose
shall
be
considered
an
increase
in
an
item
in
the
14
budget
for
purposes
of
section
24.28.
15
2.
a.
For
a
city
that
has,
as
of
June
30,
2019,
reduced
its
16
ending
fund
balance
to
less
than
twenty-five
percent
of
actual
17
expenditures,
additional
property
taxes
may
be
computed
and
18
levied
as
provided
in
this
subsection.
The
additional
property
19
tax
levy
amount
is
an
amount
not
to
exceed
the
difference
20
between
twenty-five
percent
of
actual
expenditures
for
city
21
government
purposes
for
the
fiscal
year
beginning
July
1,
2018,
22
minus
the
ending
fund
balance
for
that
year.
23
b.
All
or
a
portion
of
additional
property
tax
dollars
24
may
be
levied
for
the
purpose
of
increasing
cash
reserves
for
25
city
government
purposes
in
the
budget
year.
The
additional
26
property
tax
dollars
authorized
under
this
subsection
but
not
27
levied
may
be
carried
forward
as
unused
ending
fund
balance
28
taxing
authority
until
and
for
the
fiscal
year
beginning
29
July
1,
2025.
The
amount
carried
forward
shall
not
exceed
30
twenty-five
percent
of
the
maximum
amount
of
property
tax
31
dollars
available
in
the
current
fiscal
year.
Additionally,
32
property
taxes
that
are
levied
as
unused
ending
fund
balance
33
taxing
authority
under
this
subsection
may
be
the
subject
of
a
34
protest
under
section
384.19,
and
the
amount
will
be
considered
35
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an
increase
in
an
item
in
the
budget
for
purposes
of
section
1
24.28.
The
amount
of
additional
property
tax
dollars
levied
2
under
this
subsection
shall
not
be
included
in
the
computation
3
of
the
maximum
amount
of
property
tax
dollars
which
may
be
4
certified
and
levied
under
section
384.1.
5
Sec.
23.
Section
384.12,
subsection
19,
Code
2019,
is
6
amended
by
striking
the
subsection.
7
Sec.
24.
NEW
SECTION
.
384.12A
Authority
to
levy
beyond
8
maximum
property
tax
dollars.
9
1.
a.
The
city
council
may
annually
certify
additions
10
to
the
maximum
amount
of
property
tax
dollars
to
be
levied
11
if
the
city
council
publishes
notice
of
the
proposed
action,
12
including
a
statement
of
the
amount
and
purpose
of
the
proposed
13
additions,
and
the
time
and
place
of
a
public
meeting
at
which
14
the
city
council
proposes
to
take
action
on
the
proposal.
15
At
the
meeting,
the
council
shall
receive
oral
or
written
16
objections
from
any
resident
or
property
owner
of
the
city.
17
After
all
objections
have
been
received
and
considered,
the
18
council
may,
following
twenty
days
after
the
meeting
and
19
subject
to
paragraph
“b”
,
take
action
on
the
proposal
or
abandon
20
the
proposal.
21
b.
If,
at
any
time
within
twenty
days
after
the
meeting
22
under
paragraph
“a”
,
a
petition
is
filed
with
the
city
clerk
23
signed
by
eligible
electors
of
the
city
equal
in
number
to
the
24
lesser
of
two
thousand
or
twenty
percent
of
the
persons
in
the
25
city
who
voted
for
the
office
of
president
of
the
United
States
26
at
the
last
preceding
general
election
that
had
such
office
on
27
the
ballot,
asking
that
the
question
of
levying
an
additional
28
amount
be
submitted
to
the
registered
voters
of
the
city,
the
29
city
council
shall
either
by
resolution
declare
the
proposal
30
to
be
abandoned
or
shall
direct
the
county
commissioner
of
31
elections
to
call
a
special
election
upon
the
question.
32
2.
The
special
election,
if
called,
is
subject
to
the
33
following:
34
a.
The
city
council
must
give
at
least
thirty-two
days’
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notice
to
the
county
commissioner
of
elections
that
the
special
1
election
is
to
be
held.
In
no
case,
however,
shall
a
notice
be
2
given
to
the
county
commissioner
of
elections
after
December
31
3
for
an
election
on
a
proposition
to
exceed
the
statutory
limits
4
during
the
fiscal
year
beginning
in
the
next
calendar
year.
5
b.
The
proposition
submitted
to
voters
may
propose
authority
6
for
the
city
council
to
certify
additions
to
the
maximum
amount
7
of
property
tax
dollars
for
up
to
two
fiscal
years.
The
8
proposition
is
approved
if
it
receives
a
favorable
majority
of
9
the
votes
cast
on
the
proposition.
10
c.
The
proposition
to
be
submitted
shall
be
substantially
11
in
the
following
form:
12
Vote
“yes”
or
“no”
on
the
following:
13
Shall
the
city
of
........
levy
for
an
additional
$
...
each
14
year
for
...
years
beginning
next
July
1,
....
,
in
excess
of
15
the
statutory
limits
otherwise
applicable
for
the
city
general
16
fund?
17
d.
The
canvass
shall
be
held
beginning
at
1:00
p.m.
on
18
the
second
day
which
is
not
a
holiday
following
the
special
19
election.
20
e.
Notice
of
the
special
election
shall
be
published
at
21
least
once
in
a
newspaper
as
specified
in
section
362.3
prior
22
to
the
date
of
the
special
election.
The
notice
shall
appear
23
as
early
as
practicable
after
the
city
council
has
voted
to
24
submit
a
proposition
to
the
voters
to
levy
additional
property
25
tax
dollars.
26
3.
The
amount
of
additional
property
tax
dollars
certified
27
under
this
section
shall
not
be
included
in
the
computation
28
of
the
maximum
amount
of
property
tax
dollars
which
may
be
29
certified
and
levied
under
section
384.1.
30
Sec.
25.
Section
384.19,
Code
2019,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
5.
For
purposes
of
a
tax
protest
filed
33
under
this
section
and
in
accordance
with
the
provisions
of
34
chapter
24,
“item”
means
a
budgeted
expenditure,
appropriation,
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or
cash
reserve
from
a
fund
for
a
service
area,
program,
1
program
element,
or
purpose.
2
Sec.
26.
Section
386.8,
Code
2019,
is
amended
to
read
as
3
follows:
4
386.8
Operation
tax.
5
A
city
may
establish
a
self-supported
improvement
district
6
operation
fund,
and
may
certify
taxes
not
to
exceed
the
7
rate
limitation
as
established
in
the
ordinance
creating
the
8
district,
or
any
amendment
thereto,
each
year
to
be
levied
9
for
the
fund
against
all
of
the
property
in
the
district,
10
for
the
purpose
of
paying
the
administrative
expenses
of
11
the
district,
which
may
include
but
are
not
limited
to
12
administrative
personnel
salaries,
a
separate
administrative
13
office,
planning
costs
including
consultation
fees,
engineering
14
fees,
architectural
fees,
and
legal
fees
and
all
other
expenses
15
reasonably
associated
with
the
administration
of
the
district
16
and
the
fulfilling
of
the
purposes
of
the
district.
The
taxes
17
levied
for
this
fund
may
also
be
used
for
the
purpose
of
paying
18
maintenance
expenses
of
improvements
or
self-liquidating
19
improvements
for
a
specified
length
of
time
with
one
or
more
20
options
to
renew
if
such
is
clearly
stated
in
the
petition
21
which
requests
the
council
to
authorize
construction
of
the
22
improvement
or
self-liquidating
improvement,
whether
or
not
23
such
petition
is
combined
with
the
petition
requesting
creation
24
of
a
district.
Parcels
of
property
which
are
assessed
as
25
residential
property
for
property
tax
purposes
are
exempt
from
26
the
tax
levied
under
this
section
except
residential
properties
27
within
a
duly
designated
historic
district.
A
tax
levied
under
28
this
section
is
not
subject
to
the
levy
limitation
in
section
29
384.1
.
30
Sec.
27.
Section
386.9,
Code
2019,
is
amended
to
read
as
31
follows:
32
386.9
Capital
improvement
tax.
33
A
city
may
establish
a
capital
improvement
fund
for
a
34
district
and
may
certify
taxes,
not
to
exceed
the
rate
35
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established
by
the
ordinance
creating
the
district,
or
any
1
subsequent
amendment
thereto,
each
year
to
be
levied
for
2
the
fund
against
all
of
the
property
in
the
district,
for
3
the
purpose
of
accumulating
moneys
for
the
financing
or
4
payment
of
a
part
or
all
of
the
costs
of
any
improvement
or
5
self-liquidating
improvement.
However,
parcels
of
property
6
which
are
assessed
as
residential
property
for
property
tax
7
purposes
are
exempt
from
the
tax
levied
under
this
section
8
except
residential
properties
within
a
duly
designated
historic
9
district.
A
tax
levied
under
this
section
is
not
subject
to
10
the
levy
limitations
in
section
384.1
or
384.7
.
11
Sec.
28.
REPEAL.
Sections
331.425
and
331.426,
Code
2019,
12
are
repealed.
13
Sec.
29.
APPLICABILITY.
This
Act
applies
to
fiscal
years
14
beginning
on
or
after
July
1,
2020.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
removes
the
property
tax
levy
rate
limitations
on
19
the
general
and
rural
funds
for
counties
and
on
the
general
20
fund
for
cities
and
substitutes
a
limitation
on
the
maximum
21
amount
of
property
tax
dollars
that
may
be
certified
for
22
expenditure
by
a
county
or
city
for
those
funds
for
fiscal
23
years
beginning
on
or
after
July
1,
2020.
For
the
fiscal
24
year
beginning
July
1,
2020,
and
subsequent
fiscal
years,
the
25
maximum
amount
of
property
tax
dollars
which
may
be
certified
26
for
levy
shall
be
an
amount
equal
to
the
sum
of
the
current
27
fiscal
year’s
total
property
tax
dollars
certified
by
the
28
county
or
city
multiplied
by
the
annual
growth
factor,
as
29
defined
in
the
bill,
and
the
amount
of
net
new
valuation
taxes,
30
as
defined
in
the
bill.
31
The
bill
also
allows
counties
and
cities
to
annually
certify
32
additions
to
the
maximum
amount
of
property
tax
dollars
to
33
be
levied
following
a
public
meeting,
subject
to
a
voter
34
referendum,
if
requested
by
petition.
The
bill
specifies
35
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the
notice
and
election
requirements
for
such
a
referendum
1
election.
The
bill
specifies
that
such
additional
amounts
are
2
not
to
be
included
in
the
computation
of
the
maximum
amount
of
3
property
tax
dollars
for
future
budget
years.
4
The
bill
specifies
certain
requirements
for
ending
fund
5
balances
for
counties
and
cities.
The
bill
provides
that
6
budgeted
ending
fund
balances
in
certain
specified
funds
for
a
7
budget
year
in
excess
of
25
percent
of
budgeted
expenditures
8
shall
be
explicitly
reserved
or
designated
for
a
specific
9
purpose.
10
Under
the
bill,
counties
and
cities
are
encouraged,
but
11
not
required,
to
reduce
budgeted,
unreserved,
or
undesignated
12
ending
fund
balances
for
the
budget
year
to
an
amount
equal
to
13
approximately
25
percent
of
budgeted
expenditures
and
certain
14
transfers
for
that
budget
year
unless
a
decision
is
certified
15
by
the
state
appeal
board
ordering
a
reduction
in
the
ending
16
fund
balance
of
any
of
those
funds.
The
county
or
city,
17
as
applicable,
has
the
burden
of
proving
that
the
budgeted
18
balances
in
excess
of
25
percent
are
reasonably
likely
to
be
19
appropriated
for
the
explicitly
reserved
or
designated
specific
20
purpose.
21
The
bill
also
allows
for
additional
property
taxes
to
be
22
levied
in
certain
fiscal
years
for
those
counties
or
cities
23
that
have,
as
of
June
30,
2019,
reduced
their
actual
ending
24
fund
balance
to
less
than
25
percent
of
actual
expenditures.
25
Such
additional
property
tax
dollars
authorized
but
not
levied
26
may
be
carried
forward
as
unused
ending
fund
balance
taxing
27
authority
until
and
for
the
fiscal
year
beginning
July
1,
2025.
28
However,
the
amount
carried
forward
shall
not
exceed
25
percent
29
of
the
maximum
amount
of
property
tax
dollars
available
in
the
30
current
fiscal
year.
The
amount
of
such
additional
property
31
taxes
levied
shall
not,
however,
be
included
in
the
computation
32
of
the
maximum
amount
of
property
tax
dollars
which
may
be
33
certified
and
levied
in
future
budget
years.
34
The
bill
also
makes
conforming
amendments
to
other
35
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21
H.F.
_____
provisions
of
the
Code.
1
The
bill
applies
to
fiscal
years
beginning
on
or
after
July
2
1,
2020.
3
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