Senate
File
2104
-
Introduced
SENATE
FILE
2104
BY
ZAUN
A
BILL
FOR
An
Act
relating
to
property
taxation
by
providing
a
property
1
assessment
adjustment
and
property
tax
reduction
for
2
certain
property
of
persons
who
meet
certain
income
3
qualifications,
providing
a
penalty,
modifying
city
and
4
county
budget
provisions,
and
including
retroactive
and
5
other
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
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DIVISION
I
1
CITY
AND
COUNTY
BUDGET
INCREASE
APPROVAL
2
Section
1.
Section
331.433A,
subsection
5,
paragraph
b,
3
Code
2020,
is
amended
to
read
as
follows:
4
b.
If
the
sum
of
the
maximum
property
tax
dollars
for
the
5
budget
year
specified
in
the
resolution
for
either
general
6
county
services
or
for
rural
county
services
under
the
7
levies
specified
in
subsection
2
,
paragraphs
“a”
and
“b”
,
as
8
applicable,
exceeds
one
hundred
two
one
percent
of
the
sum
of
9
the
current
fiscal
year’s
actual
property
taxes
certified
for
10
levy
for
general
county
services
or
rural
county
services
under
11
the
levies
specified
in
subsection
2
,
paragraphs
“a”
and
“b”
,
as
12
applicable,
the
board
shall
be
required
to
adopt
the
resolution
13
by
a
two-thirds
majority
of
the
membership
of
the
board
and
for
14
fiscal
years
beginning
on
or
after
July
1,
2021,
be
approved
at
15
election
under
section
331.434A
.
16
Sec.
2.
Section
331.434,
unnumbered
paragraph
1,
Code
2020,
17
is
amended
to
read
as
follows:
18
Annually,
the
board
of
each
county,
subject
to
section
19
331.403,
subsection
4
,
sections
331.423
through
331.426
,
20
section
331.433A
,
section
331.434A,
and
other
applicable
state
21
law,
shall
prepare
and
adopt
a
budget,
certify
taxes,
and
22
provide
appropriations
as
follows:
23
Sec.
3.
NEW
SECTION
.
331.434A
Budget
increase
election.
24
1.
For
fiscal
years
beginning
on
or
after
July
1,
2021,
if
25
the
sum
of
the
maximum
property
tax
dollars
for
the
budget
year
26
for
either
general
county
services
or
for
rural
county
services
27
under
the
levies
specified
in
section
331.433A,
subsection
2,
28
paragraphs
“a”
and
“b”
,
as
applicable,
exceeds
one
hundred
one
29
percent
of
the
sum
of
the
current
fiscal
year’s
actual
property
30
taxes
certified
for
levy
for
general
county
services
or
rural
31
county
services
under
the
levies
specified
in
section
331.433A,
32
subsection
2,
paragraphs
“a”
and
“b”
,
as
applicable,
and
the
33
board
has
adopted
the
resolution
by
a
two-thirds
majority
of
34
the
membership
of
the
board
as
required
under
section
331.433A,
35
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subsection
5,
paragraph
“b”
,
the
board
shall
call
a
county
1
special
election
to
vote
upon
the
question
of
the
increase.
2
2.
Notice
of
the
election
shall
be
given
by
publication
as
3
specified
in
section
331.305.
At
the
election,
the
ballot
used
4
for
the
submission
of
the
proposition
shall
be
in
substantially
5
the
form
for
submitting
special
questions
at
general
elections.
6
3.
The
proposition
for
the
increase
is
not
carried
or
7
adopted
unless
the
vote
in
favor
of
the
proposition
is
equal
8
to
at
least
sixty
percent
of
the
total
votes
cast
for
and
9
against
the
proposition
at
the
election.
If
the
proposition
is
10
approved
by
the
voters,
the
board
shall,
as
necessary,
amend
11
the
county
budget
under
section
331.435,
and
the
department
of
12
management
shall
make
all
necessary
changes
to
the
county’s
13
certified
amount
of
taxes.
14
Sec.
4.
Section
331.435,
subsection
2,
Code
2020,
is
amended
15
to
read
as
follows:
16
2.
The
board
shall
prepare
and
adopt
a
budget
amendment
in
17
the
same
manner
as
the
original
budget
as
provided
in
section
18
331.434
,
but
excluding
the
requirements
for
adoption
of
the
19
resolution
under
section
331.433A
and
the
election
under
20
section
331.434A
,
and
the
amendment
is
subject
to
protest
as
21
provided
in
section
331.436
,
except
that
the
director
of
the
22
department
of
management
may
by
rule
provide
that
amendments
23
of
certain
types
or
up
to
certain
amounts
may
be
made
without
24
public
hearing
and
without
being
subject
to
protest.
A
county
25
budget
for
the
ensuing
fiscal
year
shall
be
amended
by
May
31
26
to
allow
time
for
a
protest
hearing
to
be
held
and
a
decision
27
rendered
before
June
30.
An
amendment
of
a
budget
after
May
28
31
which
is
properly
appealed
but
without
adequate
time
for
29
hearing
and
decision
before
June
30
is
void.
30
Sec.
5.
Section
384.15A,
subsection
5,
paragraph
b,
Code
31
2020,
is
amended
to
read
as
follows:
32
b.
If
the
sum
of
the
maximum
property
tax
dollars
for
33
the
budget
year
specified
in
the
resolution
under
the
levies
34
specified
in
subsection
2
exceeds
one
hundred
two
one
percent
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of
the
sum
of
the
current
fiscal
year’s
actual
property
taxes
1
certified
for
levy
under
the
levies
specified
in
subsection
2
2
,
the
council
shall
be
required
to
adopt
the
resolution
by
3
a
two-thirds
majority
of
the
membership
of
the
council
,
and
4
for
fiscal
years
beginning
on
or
after
July
1,
2021,
shall
be
5
approved
at
election
under
section
384.15B
.
6
Sec.
6.
NEW
SECTION
.
384.15B
Budget
increase
election.
7
1.
For
fiscal
years
beginning
on
or
after
July
1,
2021,
if
8
the
sum
of
the
maximum
property
tax
dollars
for
the
budget
year
9
specified
in
the
resolution
under
section
384.15A
exceeds
one
10
hundred
one
percent
of
the
sum
of
the
current
fiscal
year’s
11
actual
property
taxes
certified
for
levy
under
the
levies
12
specified
in
section
384.15A,
subsection
2,
and
the
council
13
has
adopted
the
resolution
by
a
two-thirds
majority
of
the
14
membership
of
the
council
as
required
under
section
384.15A,
15
subsection
5,
paragraph
“b”
,
the
council
shall
call
a
city
16
special
election
to
vote
upon
the
question
of
the
increase.
17
2.
Notice
of
the
election
shall
be
given
by
publication
as
18
specified
in
section
49.53.
At
the
election,
the
ballot
used
19
for
the
submission
of
the
proposition
shall
be
in
substantially
20
the
form
for
submitting
special
questions
at
general
elections.
21
3.
The
proposition
for
the
increase
is
not
carried
or
22
adopted
unless
the
vote
in
favor
of
the
proposition
is
equal
23
to
at
least
sixty
percent
of
the
total
votes
cast
for
and
24
against
the
proposition
at
the
election.
If
the
proposition
25
is
approved
by
the
voters,
the
board
shall,
as
necessary,
26
amend
the
city
budget
under
section
384.18,
and
the
department
27
of
management
shall
make
all
necessary
changes
to
the
city’s
28
certified
amount
of
taxes.
29
Sec.
7.
Section
384.16,
unnumbered
paragraph
1,
Code
2020,
30
is
amended
to
read
as
follows:
31
Annually,
a
city
that
has
satisfied
the
requirements
of
32
section
384.15A
and
section
384.22,
subsection
3
,
and
section
33
384.15B,
if
applicable,
shall
prepare
and
adopt
a
budget,
and
34
shall
certify
taxes
as
follows:
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Sec.
8.
Section
384.18,
subsection
1,
Code
2020,
is
amended
1
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
e.
To
amend
the
city
budget
following
an
3
election
under
section
384.15B.
4
Sec.
9.
Section
384.18,
subsection
2,
Code
2020,
is
amended
5
to
read
as
follows:
6
2.
A
budget
amendment
must
be
prepared
and
adopted
in
the
7
same
manner
as
the
original
budget,
as
provided
in
section
8
384.16
,
but
excluding
the
requirement
for
adoption
of
a
9
resolution
under
section
384.15A
or
an
election
under
section
10
384.15B,
and
is
subject
to
protest
as
provided
in
section
11
384.19
,
except
that
the
committee
may
by
rule
provide
that
12
amendments
of
certain
types
or
up
to
certain
amounts
may
be
13
made
without
public
hearing
and
without
being
subject
to
14
protest.
A
city
budget
shall
be
amended
by
May
31
of
the
15
current
fiscal
year
to
allow
time
for
a
protest
hearing
to
be
16
held
and
a
decision
rendered
before
June
30.
The
amendment
of
17
a
budget
after
May
31,
which
is
properly
appealed
but
without
18
adequate
time
for
hearing
and
decision
before
June
30
is
void.
19
Sec.
10.
APPLICABILITY.
This
division
of
this
Act
applies
20
to
city
and
county
budgets
for
fiscal
years
beginning
on
or
21
after
July
1,
2021.
22
DIVISION
II
23
ELDERLY
HOMESTEAD
ADJUSTMENT
24
Sec.
11.
NEW
SECTION
.
425B.1
Homestead
assessed
value
25
adjustment
——
purpose.
26
Persons
who
own
their
homesteads
and
who
meet
the
27
qualifications
provided
in
this
chapter
are
eligible
for
an
28
adjustment
in
the
assessed
value
of
their
homesteads
and
the
29
amount
of
property
taxes
due
and
payable,
or
both.
30
Sec.
12.
NEW
SECTION
.
425B.2
Definitions.
31
As
used
in
this
chapter,
unless
the
context
otherwise
32
requires:
33
1.
“Assessed
value”
means
the
actual
value
prior
to
any
34
adjustment
pursuant
to
section
441.21,
subsection
4.
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2.
“Base
assessment
year”
means
the
assessment
year
1
beginning
in
the
base
year.
2
3.
“Base
year”
means
the
calendar
year
last
ending
before
3
the
claim
is
filed.
4
4.
“Claimant”
means
a
person
filing
a
claim
for
adjustment
5
under
this
chapter
who
receives
fifty
percent
or
more
of
the
6
person’s
household
income
from
social
security
benefits
or
7
pension
income,
and
is
domiciled
in
this
state
at
the
time
the
8
claim
is
filed
or
at
the
time
of
the
person’s
death
in
the
9
case
of
a
claim
filed
by
the
executor
or
administrator
of
the
10
claimant’s
estate.
11
5.
“Homestead”
means
the
same
as
defined
in
section
425.17.
12
6.
“Household”
,
“household
income”
,
and
“income”
mean
the
13
same
as
defined
in
section
425.17.
14
7.
“Owned”
means
owned
by
an
owner
as
defined
in
section
15
425.11.
16
Sec.
13.
NEW
SECTION
.
425B.3
Right
to
file
a
claim.
17
The
right
to
file
a
claim
for
an
assessed
value
adjustment
18
under
this
chapter
may
be
exercised
by
the
claimant
or
on
19
behalf
of
a
claimant
by
the
claimant’s
legal
guardian,
spouse,
20
or
attorney,
or
by
the
executor
or
administrator
of
the
21
claimant’s
estate.
If
a
claimant
dies
after
having
filed
a
22
claim
for
adjustment,
the
amount
of
any
adjustment
shall
be
23
made
as
if
the
claimant
had
not
died.
24
Sec.
14.
NEW
SECTION
.
425B.4
Claim
for
adjustment.
25
1.
Subject
to
the
limitations
provided
in
this
chapter,
26
a
claimant
may
annually
claim
an
adjustment
of
the
assessed
27
value
of
the
claimant’s
homestead
for
the
base
assessment
year.
28
The
adjustment
claim
shall
be
filed
with
the
county
assessor
29
between
January
1
and
February
15
immediately
following
30
the
close
of
the
base
assessment
year.
However,
in
case
of
31
sickness,
absence,
or
other
disability
of
the
claimant,
or
32
if
in
the
judgment
of
the
county
assessor
good
cause
exists,
33
the
county
assessor
may
extend
the
time
for
filing
a
claim
for
34
adjustment
through
June
30
of
the
same
calendar
year.
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2.
The
county
assessor
shall
notify
the
department
of
1
revenue
by
March
1
of
the
number
of
claimants
receiving
2
adjustments
under
this
chapter
and
the
total
amount
of
the
3
reduced
assessed
values
for
the
base
assessment
year.
4
Sec.
15.
NEW
SECTION
.
425B.5
Adjustment
——
maximum
tax
5
dollars
levied.
6
The
assessed
value
of
the
claimant’s
homestead
in
the
7
base
assessment
year
shall
be
adjusted,
but
not
increased,
8
to
equal
the
assessed
value,
as
such
assessed
value
may
have
9
been
adjusted
pursuant
to
this
chapter,
in
the
assessment
year
10
preceding
the
base
assessment
year.
If
the
amount
of
property
11
taxes
levied
against
the
adjusted
assessment
exceeds
the
amount
12
of
property
taxes
levied
against
the
property
in
the
fiscal
13
year
for
which
taxes
were
first
levied
against
an
adjusted
14
assessment
under
this
chapter,
the
amount
of
the
difference
15
shall
be
abated
and
the
treasurer
shall
subtract
the
difference
16
from
the
amount
due.
17
Sec.
16.
NEW
SECTION
.
425B.6
Administration.
18
The
director
of
revenue
shall
make
available
suitable
forms
19
for
claiming
an
assessed
value
adjustment
with
instructions
20
for
claimants.
Each
assessor
and
county
treasurer
shall
make
21
available
the
forms
and
instructions.
The
claim
shall
be
in
a
22
form
as
the
director
may
prescribe.
23
Sec.
17.
NEW
SECTION
.
425B.7
Proof
of
claim.
24
1.
Every
claimant
shall
give
the
department
of
revenue,
in
25
support
of
the
claim,
reasonable
proof
of:
26
a.
Changes
of
homestead.
27
b.
Size
and
nature
of
the
property
claimed
as
the
homestead.
28
c.
Household
income.
29
2.
The
director
of
revenue
may
require
any
additional
proof
30
necessary
to
support
a
claim.
31
Sec.
18.
NEW
SECTION
.
425B.8
Audit
——
denial.
32
If
on
the
audit
of
a
claim
for
adjustment
under
this
chapter,
33
the
director
of
revenue
determines
the
claim
is
not
allowable,
34
the
director
shall
notify
the
claimant
of
the
denial
and
the
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reasons
for
it.
The
director
shall
not
deny
a
claim
after
1
three
years
from
October
31
of
the
year
in
which
the
claim
was
2
filed.
The
director
shall
give
notification
to
the
county
3
assessor
of
the
denial
of
the
claim
and
the
county
assessor
4
shall
instruct
the
county
treasurer
to
proceed
to
collect
the
5
tax
that
would
have
been
levied
on
the
applicable
adjusted
6
assessed
value
in
the
same
manner
as
other
property
taxes
7
due
and
payable
are
collected,
if
the
property
on
which
the
8
adjustment
was
granted
is
still
owned
by
the
claimant.
9
Sec.
19.
NEW
SECTION
.
425B.9
Waiver
of
confidentiality.
10
1.
A
claimant
shall
expressly
waive
any
right
to
11
confidentiality
relating
to
all
information
available
to
the
12
county
assessor
who
shall
hold
the
information
confidential
13
except
that
it
may
be
used
as
evidence
to
disallow
the
assessed
14
value
adjustment.
15
2.
The
department
of
revenue
may
release
information
16
pertaining
to
a
person’s
eligibility
or
claim
for
or
receipt
of
17
the
assessed
value
adjustment
to
an
employee
of
the
department
18
of
inspections
and
appeals
in
the
employee’s
official
conduct
19
of
an
audit
or
investigation.
20
Sec.
20.
NEW
SECTION
.
425B.10
False
claim
——
penalty.
21
A
person
who
makes
a
false
affidavit
for
the
purpose
of
22
obtaining
an
adjustment
in
assessed
value
provided
for
in
23
this
chapter
or
who
knowingly
receives
the
adjustment
without
24
being
legally
entitled
to
it
or
makes
claim
for
the
adjustment
25
in
more
than
one
county
in
the
state
without
being
legally
26
entitled
to
it
is
guilty
of
a
fraudulent
practice.
The
claim
27
for
adjustment
shall
be
disallowed
in
full
and
property
tax
28
shall
be
levied
on
the
disallowed
adjustment
at
the
rate
that
29
would
have
been
levied
but
for
the
adjustment.
The
director
of
30
revenue
shall
send
a
notice
of
disallowance
of
the
claim.
31
Sec.
21.
NEW
SECTION
.
425B.11
Notices,
appeals,
and
32
rules.
33
To
the
extent
not
otherwise
contrary
to
the
provisions
of
34
this
chapter:
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1.
Section
423.39,
subsection
1,
shall
apply
to
all
notices
1
under
this
chapter.
2
2.
Any
person
aggrieved
by
an
act
or
decision
of
the
3
director
of
revenue
or
the
department
of
revenue
under
this
4
chapter
shall
have
the
same
rights
of
appeal
and
review
as
5
provided
in
section
423.38
and
the
rules
of
the
department
of
6
revenue.
7
3.
A
claim
for
adjustment
shall
be
disallowed
if
the
8
department
finds
that
the
claimant
or
a
person
of
the
9
claimant’s
household
received
title
to
the
homestead
primarily
10
for
the
purpose
of
receiving
benefits
under
this
chapter.
11
4.
The
department
of
revenue
shall
adopt
rules
pursuant
to
12
chapter
17A
to
administer
and
interpret
this
chapter,
including
13
rules
to
prevent
and
disallow
duplication
of
benefits
and
to
14
prevent
any
unreasonable
hardship
or
advantage
to
any
person.
15
Sec.
22.
APPLICABILITY.
This
division
of
this
Act
applies
16
retroactively
to
January
1,
2020,
for
assessment
years
17
beginning
on
or
after
that
date
and
to
the
filing
of
claims
on
18
or
after
January
1,
2021,
for
adjustments
of
assessed
values.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
relates
to
property
taxation
by
modifying
certain
23
city
and
county
budget
provisions
and
providing
a
property
24
assessment
adjustment
and
property
tax
reduction
for
certain
25
property
of
persons
that
meet
income
qualifications.
26
Current
law
provides
that
for
budget
years
beginning
on
or
27
after
July
1,
2020,
each
county
and
city
is,
prior
to
filing
of
28
the
entity’s
proposed
budget,
required
to
adopt
a
resolution
29
establishing,
in
the
case
of
a
county,
the
total
maximum
30
property
tax
dollars
that
may
be
certified
for
levy
for
general
31
county
services
and
the
total
maximum
property
tax
dollars
that
32
may
be
certified
for
levy
for
rural
county
services;
and
in
the
33
case
of
a
city,
the
total
maximum
property
tax
dollars
that
may
34
be
certified
for
the
enumerated
city
government
purposes
and
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funds.
In
addition
to
the
public
hearing
on
the
budget,
the
1
governing
body
must
hold
a
public
hearing
on
the
resolution.
2
If
the
sum
of
the
total
maximum
property
tax
dollars
for
the
3
budget
year
specified
in
the
resolution
exceeds
102
percent
4
of
the
sum
of
the
current
fiscal
year’s
actual
property
taxes
5
certified
for
levy,
the
governing
body
shall
be
required
to
6
adopt
the
resolution
by
a
two-thirds
majority
of
the
membership
7
of
the
governing
body.
Division
I
of
the
bill
changes
the
8
threshold
percentage
for
the
two-third
majority
approval
from
9
102
percent
to
101
percent
and
requires
the
increase
in
the
10
budget
amount
to
be
approved
by
the
voters
at
election.
The
11
proposition
for
the
increase
is
not
carried
or
adopted
unless
12
the
vote
in
favor
of
the
proposition
is
equal
to
at
least
60
13
percent
of
the
total
votes
cast
for
and
against
the
proposition
14
at
the
election.
If
the
proposition
is
approved
by
the
voters,
15
the
county
or
city,
as
applicable,
shall
amend
the
county
or
16
city
budget
and
the
department
of
management
shall
make
all
17
necessary
changes
to
the
city’s
certified
amount
of
taxes.
18
Division
I
of
the
bill
applies
to
city
and
county
budgets
for
19
fiscal
years
beginning
on
or
after
July
1,
2021.
20
Division
II
of
the
bill
provides
for
an
adjustment
in
21
the
assessed
value
of
a
homestead,
as
defined
in
the
bill,
22
if
the
owner’s
household
income
consists
of
50
percent
or
23
more
of
social
security
income
or
pension
income.
If
those
24
qualifications
are
met,
the
assessed
value
of
the
homestead
25
upon
which
property
taxes
are
levied
in
a
fiscal
year
is
the
26
same
assessed
value
as
for
the
previous
fiscal
year.
The
bill
27
specifies
that
assessed
value
is
the
actual
value
prior
to
any
28
rollback
being
applied.
29
The
bill
provides
that
a
person
who
makes
a
false
affidavit
30
for
the
purpose
of
obtaining
an
adjustment,
knowingly
receives
31
the
adjustment
without
being
legally
entitled
to
it,
or
makes
32
claim
for
the
adjustment
in
more
than
one
county
without
being
33
legally
entitled
to
it
is
guilty
of
a
fraudulent
practice
and
34
is
subject
to
a
criminal
penalty.
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Division
II
of
the
bill
applies
retroactively
to
January
1,
1
2020,
for
assessment
years
beginning
on
or
after
that
date
and
2
applies
to
claims
filed
on
or
after
January
1,
2021,
for
the
3
adjustments.
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