H.F. 446 Section 1. Section 441.21, subsection 4, Code 2023, is 1 amended to read as follows: 2 4. For valuations established as of January 1, 1979, 3 the percentage of actual value at which agricultural and 4 residential property shall be assessed shall be the quotient of 5 the dividend and divisor as defined in this section . 6 a. (1) The dividend for each class of property shall be 7 the dividend as determined for each class of property for 8 valuations established as of January 1, 1978, adjusted by the 9 product obtained by multiplying the percentage determined 10 for that year by the amount of any additions or deletions to 11 actual value, excluding those resulting from the revaluation 12 of existing properties, as reported by the assessors on the 13 abstracts of assessment for 1978, plus six percent of the 14 amount so determined. 15 (2) However, if the difference between the dividend so 16 determined for either class of property and the dividend for 17 that class of property for valuations established as of January 18 1, 1978, adjusted by the product obtained by multiplying 19 the percentage determined for that year by the amount of 20 any additions or deletions to actual value, excluding those 21 resulting from the revaluation of existing properties, as 22 reported by the assessors on the abstracts of assessment for 23 1978, is less than six percent, the 1979 dividend for the other 24 class of property shall be the dividend as determined for that 25 class of property for valuations established as of January 26 1, 1978, adjusted by the product obtained by multiplying 27 the percentage determined for that year by the amount of 28 any additions or deletions to actual value, excluding those 29 resulting from the revaluation of existing properties, as 30 reported by the assessors on the abstracts of assessment for 31 1978, plus a percentage of the amount so determined which is 32 equal to the percentage by which the dividend as determined 33 for the other class of property for valuations established 34 as of January 1, 1978, adjusted by the product obtained by 35 -1- LSB 2176YH (2) 90 md/jh 1/ 8

H.F. 446 multiplying the percentage determined for that year by the 1 amount of any additions or deletions to actual value, excluding 2 those resulting from the revaluation of existing properties, as 3 reported by the assessors on the abstracts of assessment for 4 1978, is increased in arriving at the 1979 dividend for the 5 other class of property. 6 (3) For valuations established for assessment years 7 beginning on or after January 1, 2022, the calculation of the 8 dividend for residential property under this subsection shall 9 exclude the value of all property described in subsection 14, 10 paragraph “a” , subparagraphs (2), (3), (4), (5), and (6), 11 and the property described in subsection 14, paragraph “a” , 12 subparagraph (7), that contains three or more separate dwelling 13 units. 14 b. (1) The divisor for each class of property shall be 15 the total actual value of all such property in the state 16 in the preceding year, as reported by the assessors on the 17 abstracts of assessment submitted for 1978, plus the amount of 18 value added to said total actual value by the revaluation of 19 existing properties in 1979 as equalized by the director of 20 revenue pursuant to section 441.49 . The director shall utilize 21 information reported on abstracts of assessment submitted 22 pursuant to section 441.45 in determining such percentage. 23 (2) For valuations established for assessment years 24 beginning on or after January 1, 2022, the calculation of the 25 divisor for residential property under this subsection shall 26 exclude the value of all property described in subsection 14, 27 paragraph “a” , subparagraphs (2), (3), (4), (5), and (6), 28 and the property described in subsection 14, paragraph “a” , 29 subparagraph (7), that contains three or more separate dwelling 30 units. 31 c. (1) For valuations established as of January 1, 1980, 32 and each assessment year thereafter beginning before January 33 1, 2013, the percentage of actual value as equalized by the 34 director of revenue as provided in section 441.49 at which 35 -2- LSB 2176YH (2) 90 md/jh 2/ 8

H.F. 446 agricultural and residential property shall be assessed shall 1 be calculated in accordance with the methods provided in 2 this subsection , including the limitation of increases in 3 agricultural and residential assessed values to the percentage 4 increase of the other class of property if the other class 5 increases less than the allowable limit adjusted to include 6 the applicable and current values as equalized by the director 7 of revenue, except that any references to six percent in this 8 subsection shall be four percent. 9 (2) For valuations established as of January 1, 2013, and 10 each assessment year thereafter, the percentage of actual 11 value as equalized by the department of revenue as provided in 12 section 441.49 at which agricultural and residential property 13 shall be assessed shall be calculated in accordance with the 14 methods provided in this subsection , including the limitation 15 of increases in agricultural and residential assessed values to 16 the percentage increase of the other class of property if the 17 other class increases less than the allowable limit adjusted 18 to include the applicable and current values as equalized by 19 the department of revenue, except that any references to six 20 percent in this subsection shall be three percent. 21 Sec. 2. LOCAL GOVERNMENT SUPPLEMENT —— FY 2023-2024. 22 1. For the fiscal year beginning July 1, 2023, there is 23 appropriated from the taxpayer relief fund under section 8.57E 24 to the department of revenue an amount necessary to be used 25 for payments under this section calculated as a result of the 26 amendments to the calculation of assessment limitations under 27 section 441.21, subsection 4, as amended in this Act. 28 2. For the fiscal year beginning July 1, 2023, each county 29 treasurer shall be paid by the department of revenue an amount 30 calculated under subsection 4. 31 3. On or before April 1, 2023, the assessor shall report to 32 the county auditor the total actual value of all residential 33 property in the county that is subject to the assessment 34 limitations imposed under section 441.21, subsection 4, for the 35 -3- LSB 2176YH (2) 90 md/jh 3/ 8

H.F. 446 assessment year beginning January 1, 2022. 1 4. The county auditor shall prepare a statement, based on 2 the report received in subsection 3, listing for each taxing 3 district in the county: 4 a. The product of the total actual value of all residential 5 property that is subject to the assessment limitations under 6 section 441.21, subsection 4, for the assessment year beginning 7 January 1, 2022, multiplied by the difference, stated as a 8 percentage, between the assessment limitation percentage 9 applicable to residential property under section 441.21, 10 subsection 4, for the assessment year beginning January 1, 11 2022, as amended in this Act, and the assessment limitation 12 percentage that would be applicable to residential property 13 under section 441.21, subsection 4, Code 2023, for the 14 assessment year beginning January 1, 2022, but for enactment 15 of this Act. 16 b. The tax levy rate per one thousand dollars of assessed 17 value for each taxing district for the fiscal year beginning 18 July 1, 2023. 19 c. The amount of the payment for each county, which is equal 20 to the amount determined under paragraph “a”, multiplied by the 21 tax rate specified in paragraph “b”, and then divided by one 22 thousand dollars. 23 5. The county auditor shall certify and forward one copy of 24 the statement described in subsection 4 to the department of 25 revenue and the department of management not later than June 26 1, 2023. 27 6. The amounts determined under this section shall be 28 paid by the department of revenue to the county treasurers 29 in equal installments in September 2023 and March 2024. The 30 county treasurer shall apportion the payments among the 31 eligible taxing districts in the county and the amounts 32 received by each taxing authority shall be treated the same as 33 property taxes paid. Taxing entities shall not be required to 34 recertify budgets for the fiscal year beginning July 1, 2023, 35 -4- LSB 2176YH (2) 90 md/jh 4/ 8

H.F. 446 as the result of the supplement payments. The department of 1 management shall, however, adjust property tax levy rates for 2 the fiscal year to account for amounts received under this 3 section. 4 Sec. 3. IMPLEMENTATION. 5 1. Notwithstanding the requirements of section 441.21, 6 subsection 9, and any other provision of law to the contrary, 7 the director of the department of revenue shall, within two 8 business days following the effective date of this Act, issue 9 an amended order certifying to the county auditor of each 10 county the percentages of actual value at which residential 11 property, commercial property, industrial property, and 12 property valued by the department of revenue pursuant to 13 chapter 434 shall be assessed for taxation under section 14 441.21, subsection 9, for the assessment year beginning January 15 1, 2022. The amended order shall supersede all previous 16 orders certifying percentages for assessment limitations for 17 residential property, commercial property, industrial property, 18 and property valued by the department of revenue pursuant to 19 chapter 434 for the assessment year beginning January 1, 2022. 20 2. Notwithstanding the requirements of section 441.21, 21 subsection 9, and any other provision of law to the contrary, 22 upon receipt of the amended order under subsection 1, each 23 county auditor shall proceed to determine the assessed values 24 of residential property, commercial property, industrial 25 property, and property valued by the department of revenue 26 pursuant to chapter 434 for the assessment year beginning 27 January 1, 2022, by applying the percentages from the amended 28 order to the actual value of such property reported to the 29 county auditor by the assessor. The assessed values so 30 determined shall be the taxable values of such properties upon 31 which the applicable levy shall be made. 32 3. Notwithstanding any provision of law to the contrary, 33 each county auditor, within fifteen days after issuance of 34 the order under subsection 1, shall report the valuation by 35 -5- LSB 2176YH (2) 90 md/jh 5/ 8

H.F. 446 class of property for each taxing district in the county 1 for the assessment year beginning January 1, 2022, to the 2 department of management on forms provided by the department of 3 management. The valuations reported shall be the valuations 4 used for determining the levy rates necessary to fund political 5 subdivision budgets for the fiscal year beginning July 1, 2023, 6 subject to the adjustment of levy rates under the section of 7 this Act providing for local government payments for the fiscal 8 year beginning July 1, 2023. 9 4. In order to implement this Act, political subdivision 10 budgets for the fiscal year beginning July 1, 2023, 11 notwithstanding any other provision of law relating to the 12 timing of certifying budgets, shall be certified on or before 13 April 30, 2023. If a political subdivision certifies or 14 recertifies its applicable budget after March 31, 2023, all 15 relevant protest and appeal time limits shall be extended to 16 correspond to allowances for a timely filing. If a political 17 subdivision has certified its budget for the fiscal year 18 beginning July 1, 2023, before the effective date of this Act, 19 the political subdivision may recertify its budget on or before 20 April 30, 2023. 21 Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate 22 importance, takes effect upon enactment. 23 Sec. 5. RETROACTIVE APPLICABILITY. This Act applies 24 retroactively to assessment years beginning on or after January 25 1, 2022. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 Code section 441.21(4) establishes the calculation used 30 to determine the assessment limitation for residential 31 property and agricultural property. As the result of 2021 32 legislation, certain property that was previously classified 33 as multiresidential property is classified as residential 34 property for assessment years beginning on or after January 1, 35 -6- LSB 2176YH (2) 90 md/jh 6/ 8

H.F. 446 2022, and the valuations of such property are included within 1 the aggregate valuations used to calculate the assessment 2 limitation under Code section 441.21(4). This bill excludes 3 the values of the following from the calculation of the 4 assessment limitation for assessment years beginning on 5 or after January 1, 2022: mobile home parks; manufactured 6 home communities; land-leased communities; assisted living 7 facilities; parcels primarily used or intended for human 8 habitation containing three or more separate dwelling units; 9 and that portion of a parcel primarily used or intended for use 10 as commercial property or industrial property that is used or 11 intended for human habitation containing three or more separate 12 dwelling units. 13 The bill provides for local government supplement payments 14 for the fiscal year beginning July 1, 2023. The bill 15 appropriates from the taxpayer relief fund to the department of 16 revenue an amount necessary to be used for payments calculated 17 as a result of the amendments to the calculation of assessment 18 limitations under Code section 441.21(4), as amended in the 19 bill. County treasurers shall apportion the payments among 20 the eligible taxing districts in the county and the amounts 21 received by each taxing authority shall be treated the same as 22 property taxes paid. Taxing entities shall not be required to 23 recertify budgets for the fiscal year beginning July 1, 2023, 24 as the result of the supplement payments. The department of 25 management shall, however, adjust property tax levy rates for 26 the fiscal year to account for amounts received under the bill. 27 The bill includes implementation provisions requiring the 28 director of the department of revenue, within two business 29 days following the effective date of the bill, to issue an 30 amended order certifying to the county auditor of each county 31 the percentages of actual value at which residential property, 32 commercial property, industrial property, and property valued 33 by the department of revenue pursuant to Code chapter 434 shall 34 be assessed for taxation. The bill also requires each county 35 -7- LSB 2176YH (2) 90 md/jh 7/ 8

H.F. 446 auditor to determine revised assessed values based on the 1 amended order and report the revised values to the department 2 of management within 15 days after issuance of the order and 3 includes provisions governing the certification of county and 4 city budgets for the fiscal year beginning July 1, 2023. 5 The bill takes effect upon enactment and applies 6 retroactively to assessment years beginning on or after January 7 1, 2022. 8 -8- LSB 2176YH (2) 90 md/jh 8/ 8