House File 2502 - Introduced HOUSE FILE 2502 BY STECKMAN , KURTH , CAHILL , WILBURN , CROKEN , ABDUL-SAMAD , BROWN-POWERS , LEVIN , KRESSIG , JACOBY , JAMES , CARLSON , and WESSEL-KROESCHELL A BILL FOR An Act allowing cities to certify taxes for general fund levy 1 for various purposes upon approval of the voters at an 2 election. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5490YH (3) 90 dg/jh

H.F. 2502 Section 1. Section 37.8, Code 2024, is amended to read as 1 follows: 2 37.8 Cost of development, operation, and maintenance. 3 For the development, operation, and maintenance of a 4 building or monument constructed, purchased, or donated under 5 this chapter , a city may utilize taxes levied under section 6 384.1 or section 384.12, subsection 7 . 7 Sec. 2. Section 384.12, Code 2024, is amended by adding the 8 following new subsections: 9 NEW SUBSECTION . 6. A tax not to exceed thirteen and 10 one-half cents per thousand dollars of assessed value for 11 the support of instrumental or vocal musical groups, one or 12 more organizations which have tax-exempt status under section 13 501(c)(3) of the Internal Revenue Code and are organized and 14 operated exclusively for artistic and cultural purposes, or 15 any of these purposes. Certification of this tax is subject 16 to subsection 16. 17 NEW SUBSECTION . 7. A tax not to exceed eighty-one cents 18 per thousand dollars of assessed value for development, 19 operation, and maintenance of a memorial building or monument. 20 Certification of this tax is subject to subsection 16. 21 NEW SUBSECTION . 8. A tax not to exceed thirteen and 22 one-half cents per thousand dollars of assessed value for 23 support of a symphony orchestra. Certification of this tax is 24 subject to subsection 16. 25 NEW SUBSECTION . 9. A tax not to exceed twenty-seven cents 26 per thousand dollars of assessed value for the operation of 27 cultural and scientific facilities. Certification of this tax 28 is subject to subsection 16, except that the question may be 29 submitted on the council’s own motion. 30 NEW SUBSECTION . 10. A tax to aid in the construction of 31 a county bridge. Certification of this tax is subject to 32 subsection 17, except that, in addition to other requirements, 33 the notice of special election must include the location of the 34 proposed bridge. 35 -1- LSB 5490YH (3) 90 dg/jh 1/ 5

H.F. 2502 NEW SUBSECTION . 11. a. A tax to aid a company incorporated 1 under the laws of this state in the construction of a highway 2 or combination bridge across any navigable boundary river of 3 this state, commencing or terminating in the city and suitable 4 for use as highway, or for both highway and railway purposes. 5 b. Tax moneys received for this purpose may not be paid over 6 by the county treasurer until the city has filed a statement 7 that the corporation has complied with all conditions. 8 c. The levy is limited to one dollar and thirty-five cents 9 per thousand dollars of the assessed value of taxable property 10 in the city. 11 d. The estimated cost of the bridge must be at least ten 12 thousand dollars, and the city aid may not exceed one-half of 13 the estimated cost. 14 e. Certification of this tax is subject to subsection 17, 15 except that the notice of the special election shall include 16 the name of the corporation to be aided, and all conditions 17 required of the corporation. 18 NEW SUBSECTION . 12. If a tax has been voted for aid of 19 a bridge under subsection 11, a further tax may be voted for 20 the purpose of purchasing the bridge. Certification of this 21 further tax is subject to subsection 16. The levy under this 22 subsection is limited to three dollars and thirty-seven and 23 one-half cents per thousand dollars of the assessed value of 24 the taxable property in the city, payable in not less than ten 25 annual installments. 26 NEW SUBSECTION . 13. A tax for aid to a public 27 transportation company. Certification of this tax is 28 subject to subsection 17. The levy is limited to three and 29 three-eighths cents per thousand dollars of assessed value. In 30 addition to any other conditions, the following requirements 31 must be met before moneys received for this purpose may be paid 32 over by the county treasurer: 33 a. The public transportation company shall provide the city 34 with copies of state and federal income tax returns for the 35 -2- LSB 5490YH (3) 90 dg/jh 2/ 5

H.F. 2502 five years preceding the year for which payment is contemplated 1 or for such lesser period of time as the company has been in 2 operation. 3 b. The city shall, in any given year, be authorized to pay 4 over only such sums as will yield not to exceed two percent 5 of the public transportation company’s investment as the same 6 is valued in its tax depreciation schedule, provided that 7 corporate profits and losses for the five preceding years or 8 for such lesser period of time as the company has been in 9 operation shall not average in excess of a two percent net 10 return. Taxes levied under this subsection may not be used to 11 subsidize losses incurred prior to the election required by 12 this subsection. 13 NEW SUBSECTION . 14. A tax not to exceed twenty and 14 one-half cents per thousand dollars of assessed value each 15 year to maintain an institution received by gift or devise. 16 Certification of this tax is subject to subsection 16. 17 NEW SUBSECTION . 15. A tax not to exceed twenty-seven cents 18 per thousand dollars of assessed value for support of a public 19 library. Certification of this tax is subject to subsection 20 16, except that if a majority of voters approve the levy 21 pursuant to subsection 16, paragraph “b” , it shall be imposed. 22 NEW SUBSECTION . 16. A tax to be certified under subsection 23 6, 7, 8, 9, 12, or 14 shall be subject to all of the following: 24 a. Upon receipt of a valid petition pursuant to section 25 362.4, the council shall submit to the voters at the next 26 regular city election the question of whether a tax shall be 27 levied. 28 b. If a majority of voters approve the levy, it may be 29 imposed. 30 c. The levy can be eliminated by the same procedure of 31 petition and election. 32 d. A tax authorized by an election held prior to the 33 effective date of the city code may be continued until 34 eliminated by the council, or by petition and election. 35 -3- LSB 5490YH (3) 90 dg/jh 3/ 5

H.F. 2502 NEW SUBSECTION . 17. A tax to be certified under subsection 1 10, 11, or 13 shall be subject to the requirements of 2 subsection 16 and all of the following: 3 a. The question of whether to adopt the tax shall be 4 submitted at a special election. 5 b. The expense of a special election shall be paid by the 6 county. 7 c. The notice of the special election shall include full 8 details of the proposal, including the rate of tax to be levied 9 and all other conditions. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 2023 Iowa Acts, chapter 71 (HF 718), amended Code section 14 384.12 (additional taxes) to eliminate several taxes a city 15 may levy subject to voter approval at an election. In lieu 16 thereof, HF 718 enacted Code section 384.1(3)(b)(2), which 17 allows cities to levy the same amounts the eliminated taxes 18 could have levied as a part of the cities’ general fund levy. 19 This bill recodifies the tax levies eliminated by HF 718 and 20 allows such taxes to be levied, subject to the same voter 21 approval and notice requirements that existed prior to the 22 enactment of HF 718 and at the same rates as prior to the 23 enactment of HF 718, in addition to the increased amounts 24 allowed by Code section 384.1(3)(b)(2). 25 The permissible levies the bill recodifies relate to 26 taxes for the support of instrumental or vocal musical groups 27 or one or more organizations which have tax-exempt status 28 under section 501(c)(3) of the Internal Revenue Code and are 29 organized and operated exclusively for artistic and cultural 30 purposes; the development, operation, and maintenance of a 31 memorial building or monument; the support of a symphony 32 orchestra; the operation of cultural and scientific facilities; 33 the aid in the construction of a county bridge; the aid for a 34 company incorporated under the laws of Iowa in the construction 35 -4- LSB 5490YH (3) 90 dg/jh 4/ 5

H.F. 2502 of certain highways or combination bridge across any navigable 1 boundary river of Iowa; the purchase of certain bridges 2 across navigable boundary rivers of Iowa; the aid to a public 3 transportation company; the maintenance of an institution 4 received by gift or devise; and the support of a public 5 library. The bill establishes the maximum rate a city may levy 6 for each tax. 7 -5- LSB 5490YH (3) 90 dg/jh 5/ 5