House File 718 - Introduced HOUSE FILE 718 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 1) A BILL FOR An Act relating to local government funding by modifying school 1 district funding provisions, property tax calculation 2 provisions, local government budgeting and bonding 3 procedures, and including effective date and applicability 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1284HV (2) 90 md/jh
H.F. 718 DIVISION I 1 SCHOOL FOUNDATION PROPERTY TAX 2 Section 1. Section 257.3, subsection 1, paragraph a, Code 3 2023, is amended to read as follows: 4 a. Except as provided in subsections 2 and 3 , a school 5 district shall cause to be levied each year, for the school 6 general fund, a foundation property tax equal to five four 7 dollars and forty cents per thousand dollars of assessed 8 valuation on all taxable property in the district. The county 9 auditor shall spread the foundation levy over all taxable 10 property in the district. 11 Sec. 2. Section 257.3, subsection 2, paragraphs a and b, 12 Code 2023, are amended to read as follows: 13 a. Notwithstanding subsection 1 , a reorganized school 14 district shall cause a foundation property tax of four three 15 dollars and forty cents per thousand dollars of assessed 16 valuation to be levied on all taxable property which, in the 17 year preceding a reorganization, was within a school district 18 affected by the reorganization as defined in section 275.1 , 19 or in the year preceding a dissolution was a part of a school 20 district that dissolved if the dissolution proposal has 21 been approved by the director of the department of education 22 pursuant to section 275.55 . 23 b. In succeeding school years, the foundation property tax 24 levy on that portion shall be increased to the rate of four 25 three dollars and ninety cents per thousand dollars of assessed 26 valuation the first succeeding year, five four dollars and 27 fifteen cents per thousand dollars of assessed valuation the 28 second succeeding year, and five four dollars and forty cents 29 per thousand dollars of assessed valuation the third succeeding 30 year and each year thereafter. 31 Sec. 3. Section 425A.3, subsection 1, Code 2023, is amended 32 to read as follows: 33 1. The family farm tax credit fund shall be apportioned 34 each year in the manner provided in this chapter so as to give 35 -1- LSB 1284HV (2) 90 md/jh 1/ 30
H.F. 718 a credit against the tax on each eligible tract of agricultural 1 land within the several school districts of the state in which 2 the levy for the general school fund exceeds five dollars and 3 forty cents per thousand dollars of assessed value the levy 4 rate under section 257.3, subsection 1, paragraph “a” . The 5 amount of the credit on each eligible tract of agricultural 6 land shall be the amount the tax levied for the general school 7 fund exceeds the amount of tax which would be levied on each 8 eligible tract of agricultural land were the levy for the 9 general school fund five dollars and forty cents per thousand 10 dollars of assessed value the levy rate under section 257.3, 11 subsection 1, paragraph “a” , for the previous year. However, 12 in the case of a deficiency in the family farm tax credit fund 13 to pay the credits in full, the credit on each eligible tract 14 of agricultural land in the state shall be proportionate and 15 applied as provided in this chapter . 16 Sec. 4. Section 425A.5, Code 2023, is amended to read as 17 follows: 18 425A.5 Computation by county auditor. 19 The family farm tax credit allowed each year shall be 20 computed as follows: On or before April 1, the county auditor 21 shall list by school districts all tracts of agricultural 22 land which are entitled to credit, the taxable value for the 23 previous year, the budget from each school district for the 24 previous year, and the tax rate determined for the general 25 fund of the school district in the manner prescribed in 26 section 444.3 for the previous year, and if the tax rate is in 27 excess of five dollars and forty cents per thousand dollars of 28 assessed value the levy rate under section 257.3, subsection 29 1, paragraph “a” , the auditor shall multiply the tax levy which 30 is in excess of five dollars and forty cents per thousand 31 dollars of assessed value the levy rate under section 257.3, 32 subsection 1, paragraph “a” , by the total taxable value of the 33 agricultural land entitled to credit in the school district, 34 and on or before April 1, certify the total amount of credit 35 -2- LSB 1284HV (2) 90 md/jh 2/ 30
H.F. 718 and the total number of acres entitled to the credit to the 1 department of revenue. 2 Sec. 5. Section 426.3, Code 2023, is amended to read as 3 follows: 4 426.3 Where credit given. 5 The agricultural land credit fund shall be apportioned each 6 year in the manner hereinafter provided so as to give a credit 7 against the tax on each tract of agricultural lands within the 8 several school districts of the state in which the levy for 9 the general school fund exceeds five dollars and forty cents 10 per thousand dollars of assessed value the levy rate under 11 section 257.3, subsection 1, paragraph “a” ; the amount of such 12 credit on each tract of such lands shall be the amount the tax 13 levied for the general school fund exceeds the amount of tax 14 which would be levied on said tract of such lands were the 15 levy for the general school fund five dollars and forty cents 16 per thousand dollars of assessed value the levy rate under 17 section 257.3, subsection 1, paragraph “a” , for the previous 18 year, except in the case of a deficiency in the agricultural 19 land credit fund to pay said credits in full, in which case the 20 credit on each eligible tract of such lands in the state shall 21 be proportionate and shall be applied as hereinafter provided. 22 Sec. 6. Section 426.6, subsection 1, Code 2023, is amended 23 to read as follows: 24 1. The agricultural land tax credit allowed each year 25 shall be computed as follows: On or before April 1, the 26 county auditor shall list by school districts all tracts of 27 agricultural lands which are entitled to credit, together with 28 the taxable value for the previous year, together with the 29 budget from each school district for the previous year, and the 30 tax rate determined for the general fund of the district in 31 the manner prescribed in section 444.3 for the previous year, 32 and if such tax rate is in excess of five dollars and forty 33 cents per thousand dollars of assessed value the levy rate 34 under section 257.3, subsection 1, paragraph “a” , the auditor 35 -3- LSB 1284HV (2) 90 md/jh 3/ 30
H.F. 718 shall multiply the tax levy which is in excess of five dollars 1 and forty cents per thousand dollars of assessed value the 2 levy rate under section 257.3, subsection 1, paragraph “a” , by 3 the total taxable value of the agricultural lands entitled to 4 credit in the district, and on or before April 1, certify the 5 amount to the department of revenue. 6 Sec. 7. ADJUSTMENT OF CALCULATIONS. For property tax 7 credits under chapters 425A and 426 for property taxes due and 8 payable in the fiscal year beginning July 1, 2023, the tax rate 9 determined for the general fund of the school district in the 10 manner prescribed in section 444.3 for the previous year shall 11 be determined using the applicable property tax levy rate under 12 section 257.3, as amended in this division of this Act. 13 Sec. 8. EFFECTIVE DATE. This division of this Act, being 14 deemed of immediate importance, takes effect upon enactment. 15 Sec. 9. APPLICABILITY. The following apply July 1, 2023, 16 for school budget years beginning on or after that date: 17 1. The section of this division of this Act amending section 18 257.3, subsection 1, paragraph “a”. 19 2. The section of this division of this Act amending section 20 257.3, subsection 2, paragraphs “a” and “b”. 21 DIVISION II 22 PROPERTY TAX LIMITATION 23 Sec. 10. Section 443.2, subsection 1, Code 2023, is amended 24 to read as follows: 25 1. Before the first day of July in each year, the county 26 auditor shall transcribe the assessments of the townships and 27 cities into a book or record, to be known as the tax list, 28 properly ruled and headed, with separate columns, in which 29 shall be entered the names of the taxpayers, descriptions of 30 lands, number of acres and value, numbers of city lots and 31 value, and each description of tax, with a column for polls and 32 one for payments, and shall complete it by entering the amount 33 due on each installment, separately, and carrying out the total 34 of both installments. The total of all columns of each page of 35 -4- LSB 1284HV (2) 90 md/jh 4/ 30
H.F. 718 each book or other record shall balance with the tax totals. 1 After computing the amount of tax due and payable on each 2 property, the county auditor shall round the total amount of 3 tax due and payable on the property to the nearest even whole 4 dollar and, if applicable, reduce the amounts due and payable 5 as required under section 444.25 . 6 Sec. 11. Section 444.1, Code 2023, is amended to read as 7 follows: 8 444.1 Basis for amount of tax. 9 In all taxing districts in the state, including townships, 10 school districts, cities , and counties, when by law then 11 existing the people are authorized to determine by vote, or 12 officers are authorized to estimate or determine, a rate of 13 taxation required for any public purpose, such rate shall in 14 all cases be estimated and based upon the adjusted taxable 15 valuation of such taxing district for the preceding calendar 16 year and subject to the limitation of section 444.25 . 17 Sec. 12. Section 444.2, Code 2023, is amended to read as 18 follows: 19 444.2 Amounts certified in dollars. 20 When an authorized tax rate within a taxing district, 21 including townships, school districts, cities , and counties, 22 has been thus determined as provided by law, the officer or 23 officers charged with the duty of certifying the authorized 24 rate to the county auditor or board of supervisors shall, 25 before certifying the rate, compute upon the adjusted taxable 26 valuation of the taxing district for the preceding fiscal year, 27 the amount of tax the rate will raise, stated in dollars, 28 subject to the limitation of section 444.25, and shall certify 29 the computed amount in dollars and not by rate, to the county 30 auditor and board of supervisors. 31 Sec. 13. Section 444.3, Code 2023, is amended to read as 32 follows: 33 444.3 Computation of rate. 34 When the valuations for the several taxing districts shall 35 -5- LSB 1284HV (2) 90 md/jh 5/ 30
H.F. 718 have been adjusted by the several boards for the current 1 year, the county auditor shall thereupon apply such a rate, 2 not exceeding the rate authorized by law, as will raise the 3 amount required for such taxing district, and no larger amount , 4 subject to the limitation under section 444.25 . For purposes 5 of computing the rate under this section , the adjusted taxable 6 valuation of the property of a taxing district does not include 7 the valuation of property of a railway corporation or its 8 trustee which corporation has been declared bankrupt or is in 9 bankruptcy proceedings. Nothing in the preceding sentence 10 exempts the property of such railway corporation or its trustee 11 from taxation and the rate computed under this section shall 12 be levied on the taxable property of such railway corporation 13 or its trustee. 14 Sec. 14. Section 444.22, Code 2023, is amended to read as 15 follows: 16 444.22 Annual levy. 17 In each year the director of revenue shall fix the rate in 18 percentage to be levied upon the assessed valuation of the 19 taxable property of the state necessary to raise the amount for 20 general state purposes as shall be designated by the department 21 of management , subject to the limitation under section 444.25 . 22 Sec. 15. NEW SECTION . 444.25 Property tax amount limitation 23 —— reduction. 24 1. For purposes of this section: 25 a. “Base year” means the assessment year preceding the 26 assessment year used to calculate property taxes due and 27 payable in the applicable fiscal year. 28 b. “Local taxing authority” means a city, county, community 29 college, school district, or other governmental subdivision 30 located in this state and authorized to certify a levy on 31 property located within such authority. 32 c. “New construction” means buildings, structures, or 33 improvements constructed or relocated on or made to the parcel. 34 d. “Parcel” means each separate item shown on the tax list, 35 -6- LSB 1284HV (2) 90 md/jh 6/ 30
H.F. 718 manufactured or mobile home tax list, schedule of assessment, 1 or schedule of rate or charge. 2 e. “Property taxes” means annual ad valorem taxes imposed 3 on the parcel which are collectable by the county treasurer 4 following application of all applicable exemptions and credits, 5 and shall not include special assessments, amounts levied under 6 chapter 468, or taxes under chapter 435. “Property taxes” also 7 do not include taxes levied as the result of a property tax 8 levy approved at election or that portion of any property tax 9 levy imposed that is for the payment of principal and interest 10 on bonds or other indebtedness the issuance of which was 11 approved at election, including refunding bonds issued for the 12 repayment of bonds that were approved at election. 13 f. “Qualified parcel” means a parcel that is not located 14 in an urban renewal area under chapter 403 or an urban 15 revitalization area under chapter 404, is not wind energy 16 conversion property as defined in section 427B.26, and for 17 which none of the following apply: 18 (1) The parcel changed ownership during the base year. 19 (2) New construction occurred on the parcel during the base 20 year. 21 (3) The parcel’s assessment for the base year was a partial 22 assessment as the result of incomplete new construction or 23 improvements. 24 (4) The parcel was omitted from assessment or fraudulently 25 withheld from assessment in the base year. 26 (5) The parcel’s property taxes were suspended or abated 27 under sections 427.8, 427.9, and 427.10. 28 (6) The parcel’s classification is different from the base 29 year. 30 2. a. For property taxes due and payable in fiscal years 31 beginning on or after July 1, 2024, if the amount of property 32 taxes otherwise calculated to be due and payable on a qualified 33 parcel of residential property or agricultural property 34 exceeds one hundred three percent of the actual amount of 35 -7- LSB 1284HV (2) 90 md/jh 7/ 30
H.F. 718 property taxes due and payable on the parcel in the immediately 1 preceding fiscal year, such amount shall be reduced as provided 2 in subsection 3. If, however, improvements or renovations, not 3 amounting to new construction, occurs on the property during 4 the base year, the threshold amount of property taxes shall be 5 one hundred three percent plus the percentage of the parcel’s 6 taxable value attributable to the improvements or renovations. 7 Improvements or renovations do not include normal and necessary 8 repairs to an existing building or improvement, not amounting 9 to structural replacements or modifications. 10 b. For property taxes due and payable in fiscal years 11 beginning on or after July 1, 2024, if the amount of property 12 taxes otherwise calculated to be due and payable on a qualified 13 parcel of commercial property or industrial property exceeds 14 one hundred eight percent of the actual amount of property 15 taxes due and payable on the parcel in the immediately 16 preceding fiscal year, such amount shall be reduced as provided 17 in subsection 3. If, however, improvements or renovations, not 18 amounting to new construction, occurs on the property during 19 the base year, the threshold amount of property taxes shall be 20 one hundred eight percent plus the percentage of the parcel’s 21 taxable value attributable to the improvements or renovations. 22 Improvements or renovations do not include normal and necessary 23 repairs to an existing building or improvement, not amounting 24 to structural replacements or modifications. 25 c. Property taxes levied by a political subdivision that did 26 not exist for the immediately preceding fiscal year shall not 27 be included in the calculation of the property tax to be due 28 and payable for the fiscal year and shall not be reduced under 29 subsection 3. 30 3. a. If the total amount of property taxes due and 31 payable on the parcel exceeds the applicable threshold for 32 the parcel under subsection 2, the amount of property taxes 33 due and payable to each taxing authority that certified for 34 levy property taxes on the parcel in excess of the applicable 35 -8- LSB 1284HV (2) 90 md/jh 8/ 30
H.F. 718 threshold percentage of such amount levied by that taxing 1 authority on the parcel in the immediately preceding fiscal 2 year shall be reduced by the amount by which the parcel’s 3 total amount of property taxes due and payable for all taxing 4 authorities exceeds the applicable threshold for the parcel 5 under subsection 2. 6 b. The amount of the reduction shall be proportionately 7 applied among the various levies for property taxes, or 8 portions thereof, of those taxing authorities that certified 9 for levy property taxes on the parcel in excess of the 10 applicable threshold percentage of such amount levied by that 11 taxing authority on the parcel in the immediately preceding 12 fiscal year. 13 c. The reductions shall be made by the county auditor prior 14 to delivery of the tax list prescribed in chapter 443 to ensure 15 accurate statement of taxes under section 445.5. 16 4. The director of the department of revenue shall adopt 17 rules pursuant to chapter 17A to administer and interpret this 18 section. 19 Sec. 16. Section 445.5, subsection 1, paragraphs e, f, g, 20 and h, Code 2023, are amended to read as follows: 21 e. The complete name of all taxing authorities receiving a 22 tax distribution, the amount of the distribution, the amount of 23 any reduction resulting from section 444.25, and the percentage 24 distribution for each named authority, listed from the highest 25 to the lowest distribution percentage. 26 f. The consolidated levy rate for one thousand dollars 27 of taxable valuation multiplied by the taxable valuation to 28 produce the gross taxes levied before application of credits 29 against levied taxes for the previous and current fiscal years 30 and before any reduction resulting from section 444.25 . 31 g. The itemized credits against levied taxes deducted from 32 the gross taxes levied in order to produce the net taxes owed 33 for the previous and current fiscal years and the amount of any 34 reductions under section 444.25 for previous and current fiscal 35 -9- LSB 1284HV (2) 90 md/jh 9/ 30
H.F. 718 years . 1 h. The total amount of taxes levied by each taxing authority 2 in the previous fiscal year and the current fiscal year and the 3 difference between the two amounts, expressed as a percentage 4 increase or decrease , and the amount of any reduction to a 5 taxing authority resulting from section 444.25 . 6 Sec. 17. Section 445.57, subsection 1, Code 2023, is amended 7 to read as follows: 8 1. On or before the tenth day of each month, the county 9 treasurer shall apportion all taxes collected during the 10 preceding month, except partial payment amounts collected 11 pursuant to section 445.36A, subsection 1 , partial payments 12 collected and not yet designated by the county treasurer 13 for apportionment pursuant to section 445.36A, subsection 14 2 , partial payments collected pursuant to section 435.24, 15 subsection 6 , paragraph “a” , and partial payments collected and 16 not yet designated by the county treasurer for apportionment 17 pursuant to section 435.24, subsection 6 , paragraph “b” , among 18 the several funds to which they belong according to the amount 19 levied for each fund, as adjusted under section 444.25, if 20 applicable, and shall apportion the interest, fees, and costs 21 on the taxes to the general fund, and shall enter those amounts 22 upon the treasurer’s cash account, and report the amounts to 23 the county auditor. 24 Sec. 18. IMPLEMENTATION OF ACT. 25 1. Section 25B.2, subsection 3, shall not apply to this 26 division of this Act. 27 2. Section 25B.7 shall not apply to this division of this 28 Act. 29 Sec. 19. APPLICABILITY. This division of this Act applies 30 to property taxes due and payable in fiscal years beginning on 31 or after July 1, 2024. 32 DIVISION III 33 LOCAL GOVERNMENT BUDGETS 34 Sec. 20. Section 24.9, subsection 1, Code 2023, is amended 35 -10- LSB 1284HV (2) 90 md/jh 10/ 30
H.F. 718 to read as follows: 1 1. a. Each municipality shall file with the secretary or 2 clerk thereof the estimates required to be made in sections 3 24.3 through 24.8 , at least twenty days before the date fixed 4 by law for certifying the same to the levying board and shall 5 forthwith fix a date for a hearing on the estimates, and 6 shall publish such estimates and any annual levies previously 7 authorized as provided in section 76.2 , with a notice of the 8 time when and the place where such hearing shall be held not 9 less than ten nor more than twenty days before the hearing. 10 Provided that in municipalities of less than two hundred 11 population such estimates and the notice of hearing shall 12 be posted in three public places in the district in lieu of 13 publication. For any other municipality such publication 14 shall be in a newspaper published in the municipality, if any, 15 if not, then in a newspaper of general circulation in the 16 municipality. Except for a municipality with property tax 17 revenues for the immediately preceding fiscal year of less 18 than five thousand dollars, the notice shall also include the 19 information required under paragraph “c” , subparagraph (2), 20 subparagraph divisions (a) through (d), which shall be adopted 21 by resolution of the municipality. 22 b. The department of management shall prescribe the form for 23 public hearing notices for use by municipalities and notices 24 required to be sent under paragraph “c” . 25 c. (1) For purposes of this paragraph: 26 (a) “Budget year” is the fiscal year beginning during the 27 calendar year in which a budget is certified. 28 (b) “Current fiscal year” is the fiscal year ending during 29 the calendar year in which a budget for the budget year is 30 certified. 31 (c) “Effective property tax rate” means the property tax 32 rate per one thousand dollars of assessed value and is equal to 33 one thousand multiplied by the quotient of the current fiscal 34 year’s actual property tax dollars certified for levy divided 35 -11- LSB 1284HV (2) 90 md/jh 11/ 30
H.F. 718 by the total assessed value used to calculate taxes for the 1 budget year. 2 (2) In addition to the notices published and posted 3 under paragraph “a” , the municipality shall direct the 4 county treasurer to send to each owner or taxpayer within 5 the municipality by regular mail, on or before the date 6 of publication under paragraph “a” , an individual notice 7 containing all of the following: 8 (a) The sum of the current fiscal year’s actual property 9 taxes certified for levy by the municipality and the 10 municipality’s current fiscal year’s combined property tax rate 11 for such amount. 12 (b) The effective property tax rate calculated using the sum 13 of the current fiscal year’s actual property taxes certified by 14 the municipality. 15 (c) The sum of the proposed property tax dollars to be 16 certified for levy by the municipality for the budget year and 17 the proposed combined property tax rate for such amount. 18 (d) If the proposed property tax dollars specified under 19 subparagraph division (c) exceeds the current fiscal year’s 20 actual property tax dollars certified for levy specified in 21 subparagraph division (a), a statement of the major reasons for 22 the increase. 23 (e) The assessed value of the owner’s or taxpayer’s property 24 used to calculate property taxes for the current fiscal year. 25 (f) The assessed value of the owner’s or taxpayer’s property 26 used to calculate property taxes for the budget year. 27 (g) The amount of property taxes due on the owner’s or 28 taxpayer’s property for the current fiscal year for the 29 municipality. 30 (h) The proposed amount of property taxes to be levied 31 against the owner’s or taxpayer’s property for the budget year 32 for the municipality. 33 (3) This paragraph does not apply to municipalities with 34 property tax revenues for the immediately preceding fiscal year 35 -12- LSB 1284HV (2) 90 md/jh 12/ 30
H.F. 718 of less than five thousand dollars. 1 Sec. 21. Section 331.433A, subsection 4, paragraph b, Code 2 2023, is amended to read as follows: 3 b. Proof of publication shall be filed with and preserved 4 by the auditor. The department of management shall prescribe 5 the form for the public hearing notice for use by counties , the 6 form for individual notices provided under paragraph “c” , and 7 the form for the resolution to be adopted by the board under 8 subsection 5 . 9 Sec. 22. Section 331.433A, subsection 4, Code 2023, is 10 amended by adding the following new paragraph: 11 NEW PARAGRAPH . c. In addition to the notices published and 12 posted under paragraph “a” , the county shall direct the county 13 treasurer to send to each owner or taxpayer by regular mail, 14 on or before the date of publication under paragraph “a” , an 15 individual notice containing the information required under 16 paragraph “a” , subparagraphs (1) through (4), and all of the 17 following: 18 (1) The assessed value of the owner’s or taxpayer’s property 19 used to calculate property taxes for the current fiscal year. 20 (2) The assessed value of the owner’s or taxpayer’s property 21 used to calculate property taxes for the budget year. 22 (3) The amount of property taxes due on the owner’s or 23 taxpayer’s property for the current fiscal year for general 24 county services and rural county services under the levies 25 specified in subsection 2, paragraphs “a” and “b” . 26 (4) The proposed amount of property taxes to be levied 27 against the owner’s or taxpayer’s property for the budget year 28 for general county services and rural county services under the 29 levies specified in subsection 2, paragraphs “a” and “b” . 30 Sec. 23. Section 331.433A, subsection 5, paragraph a, Code 31 2023, is amended to read as follows: 32 a. At the public hearing, the board shall receive oral 33 or written objections from any resident or property owner 34 of the county. After all objections have been received and 35 -13- LSB 1284HV (2) 90 md/jh 13/ 30
H.F. 718 considered, the board may decrease, but not increase, the 1 proposed maximum property tax dollar amounts for inclusion in 2 the resolution and shall adopt the resolution and file the 3 resolution with the auditor as required under section 331.434, 4 subsection 3 . In addition to the proposed maximum property tax 5 dollar amounts for general county services and rural county 6 services, the resolution shall also include the effective 7 property tax rate for general county services, the effective 8 property tax rate for rural county services, the estimated 9 property tax rate for the proposed general county services 10 maximum property tax dollar amount, and the estimated property 11 tax rate for the proposed rural county services maximum 12 property tax dollar amount. 13 Sec. 24. Section 331.553, Code 2023, is amended by adding 14 the following new subsection: 15 NEW SUBSECTION . 9. If all applicable information is 16 available in a timely manner, consolidate all required 17 individual notices required under section 24.9, subsection 1, 18 paragraph “c” , subparagraph (2), section 331.433A, subsection 19 4, paragraph “c” , section 359.49, subsection 4, paragraph 20 “b” , subparagraph (2), and section 384.15A, subsection 4, 21 paragraph “c” , so that all applicable notices appear on a single 22 individual notice for each owner or taxpayer. 23 Sec. 25. Section 359.49, subsection 4, Code 2023, is amended 24 to read as follows: 25 4. a. The board of trustees shall transmit a copy of the 26 proposed budget and a notice of the meeting set as required by 27 subsection 5 to the county auditor for posting. The county 28 auditor shall post the notice and the proposed budget in an 29 area of the courthouse where notices to the public are commonly 30 posted. The notice shall also include the information required 31 under paragraph “b” , subparagraph (2), subparagraph divisions 32 (a) through (d), which shall be adopted by resolution of the 33 board of trustees. 34 b. (1) For purposes of this paragraph: 35 -14- LSB 1284HV (2) 90 md/jh 14/ 30
H.F. 718 (a) “Budget year” is the fiscal year beginning during the 1 calendar year in which a budget is certified. 2 (b) “Current fiscal year” is the fiscal year ending during 3 the calendar year in which a budget for the budget year is 4 certified. 5 (c) “Effective property tax rate” means the property tax 6 rate per one thousand dollars of assessed value and is equal to 7 one thousand multiplied by the quotient of the current fiscal 8 year’s actual property tax dollars certified for levy divided 9 by the total assessed value used to calculate taxes for the 10 budget year. 11 (2) In addition to the notices published and posted under 12 paragraph “a” , the township shall direct the county treasurer to 13 send to each owner or taxpayer within the township by regular 14 mail, on or before the date of posting under paragraph “a” , an 15 individual notice containing all of the following: 16 (a) The sum of the current fiscal year’s actual property 17 taxes certified for levy by the township and the township’s 18 current fiscal year’s combined property tax rate for such 19 amount. 20 (b) The effective property tax rate calculated using the sum 21 of the current fiscal year’s actual property taxes certified by 22 the township. 23 (c) The sum of the proposed property tax dollars to be 24 certified for levy by the township for the budget year and the 25 proposed combined property tax rate for such amount. 26 (d) If the proposed property tax dollars specified under 27 subparagraph division (c) exceed the current fiscal year’s 28 actual property tax dollars certified for levy specified in 29 subparagraph division (a), a statement of the major reasons for 30 the increase. 31 (e) The assessed value of the owner’s or taxpayer’s property 32 used to calculate property taxes for the current fiscal year. 33 (f) The assessed value of the owner’s or taxpayer’s property 34 used to calculate property taxes for the budget year. 35 -15- LSB 1284HV (2) 90 md/jh 15/ 30
H.F. 718 (g) The amount of property taxes due on the owner’s or 1 taxpayer’s property for the current fiscal year for the 2 township. 3 (h) The proposed amount of property taxes to be levied 4 against the owner’s or taxpayer’s property for the budget year 5 for the township. 6 Sec. 26. Section 384.15A, subsection 4, paragraph b, Code 7 2023, is amended to read as follows: 8 b. Proof of publication shall be filed with and preserved 9 by the county auditor. The department of management shall 10 prescribe the form for the public hearing notice for use 11 by cities , the form for individual notices provided under 12 paragraph “c” , and the form for the resolution to be adopted by 13 the council under subsection 5 . 14 Sec. 27. Section 384.15A, subsection 4, Code 2023, is 15 amended by adding the following new paragraph: 16 NEW PARAGRAPH . c. In addition to the notices published and 17 posted under paragraph “a” , the city shall direct the county 18 treasurer to send to each owner or taxpayer by regular mail, 19 on or before the date of publication under paragraph “a” , an 20 individual notice containing the information required under 21 paragraph “a” , subparagraphs (1) through (4), and all of the 22 following: 23 (1) The assessed value of the owner’s or taxpayer’s property 24 used to calculate property taxes for the current fiscal year. 25 (2) The assessed value of the owner’s or taxpayer’s property 26 used to calculate property taxes for the budget year. 27 (3) The amount of property taxes due on the owner’s or 28 taxpayer’s property for the current fiscal year for the city 29 under the levies specified in subsection 2. 30 (4) The proposed amount of property taxes to be levied 31 against the owner’s or taxpayer’s property for the budget year 32 for the city under the levies specified in subsection 2. 33 Sec. 28. Section 384.15A, subsection 5, paragraph a, Code 34 2023, is amended to read as follows: 35 -16- LSB 1284HV (2) 90 md/jh 16/ 30
H.F. 718 a. At the public hearing, the council shall receive oral 1 or written objections from any resident or property owner 2 of the city. After all objections have been received and 3 considered, the council may decrease, but not increase, the 4 proposed maximum property tax dollar amount for inclusion in 5 the resolution and shall adopt the resolution and file the 6 resolution with the county auditor as required under section 7 384.16, subsection 3 . In addition to the proposed maximum 8 property tax dollar amount, the resolution shall also include 9 the effective property tax rate, and the estimated property tax 10 rate for the proposed maximum property tax dollar amount. 11 Sec. 29. IMPLEMENTATION. Section 25B.2, subsection 3, 12 shall not apply to this division of this Act. 13 Sec. 30. APPLICABILITY. This division of this Act applies 14 to county, city, township, and municipality budgets for fiscal 15 years beginning on or after July 1, 2024. 16 DIVISION IV 17 BOND ELECTIONS 18 Sec. 31. Section 28E.16, Code 2023, is amended to read as 19 follows: 20 28E.16 Election for bonds. 21 When bonds which require a vote of the people are to be 22 issued for financing joint facilities of a county and one or 23 more cities within the county, pursuant to an agreement made 24 under the authority of this chapter , or pursuant to other 25 provisions of law, the board of supervisors and the council of 26 each city shall arrange for a single election on the question 27 of issuing the bonds, but if the county and the cities are 28 proposing to make separate bond issues, the ballot shall 29 contain separate questions, one to be voted upon by all voters 30 of the county, and one or more to be voted upon only by the 31 voters of the city which is to make a separate bond issue. All 32 elections on the question of issuing the bonds shall be held on 33 the date specified in section 39.2, subsection 4, paragraph “d” . 34 Sec. 32. Section 39.2, subsection 4, Code 2023, is amended 35 -17- LSB 1284HV (2) 90 md/jh 17/ 30
H.F. 718 to read as follows: 1 4. Unless otherwise provided by law, special elections on 2 public measures are limited to the following dates: 3 a. For Except as provided in paragraph “d” , for a county, in 4 an odd-numbered year, the first Tuesday in March, the second 5 Tuesday in September, or the first Tuesday after the first 6 Monday in November. For a county, in an even-numbered year, 7 the first Tuesday in March, the second Tuesday in September, or 8 the first Tuesday after the first Monday in November. 9 b. For Except as provided in paragraph “d” , for a city, in 10 an odd-numbered year, the first Tuesday in March, the second 11 Tuesday in September, or the first Tuesday after the first 12 Monday in November. For a city, in an even-numbered year, the 13 first Tuesday in March or the second Tuesday in September. 14 c. For Except as provided in paragraph “d” , for a school 15 district or merged area, in the odd-numbered year, the first 16 Tuesday in March, the second Tuesday in September, or the first 17 Tuesday after the first Monday in November. For a school 18 district or merged area, in the even-numbered year, the first 19 Tuesday in March, or the second Tuesday in September. 20 d. For any political subdivision of this state, if the 21 special election is in whole or in part for the question of 22 issuing bonds or other indebtedness, the first Tuesday after 23 the first Monday in November of each even-numbered year. 24 Sec. 33. NEW SECTION . 39.5 Notice of bond election. 25 In addition to any other notice related to the election 26 required by law to be published, posted, or provided, if the 27 election is subject to section 39.2, subsection 4, paragraph 28 “d” , the commissioner shall not less than ten nor more than 29 twenty days before the day of each election mail to each 30 registered voter of the applicable jurisdiction a notice of the 31 election that includes the full text of the public measure to 32 be voted upon at the election. 33 Sec. 34. Section 75.1, subsection 1, paragraph a, Code 2023, 34 is amended to read as follows: 35 -18- LSB 1284HV (2) 90 md/jh 18/ 30
H.F. 718 a. When a proposition to authorize an issuance of bonds 1 by a county, township, school corporation, city, or by any 2 local board or commission, is submitted to the electors, such 3 proposition shall not be deemed carried or adopted, anything 4 in the statutes to the contrary notwithstanding, unless the 5 vote in favor of such authorization is equal to at least sixty 6 percent of the total vote cast for and against said proposition 7 at said election. All elections on such proposition shall 8 be held on the date specified in section 39.2, subsection 4, 9 paragraph “d” . 10 Sec. 35. Section 75.1, subsection 2, Code 2023, is amended 11 by striking the subsection. 12 Sec. 36. Section 279.39, Code 2023, is amended to read as 13 follows: 14 279.39 School buildings. 15 The board of any school corporation shall establish 16 attendance centers and provide suitable buildings for each 17 school in the district and may at the regular or a special 18 meeting resolve to submit to the registered voters of the 19 district at an election held on a date specified in section 20 39.2, subsection 4 , paragraph “c” , the question of voting a tax 21 or authorizing the board to issue bonds, or both. 22 Sec. 37. Section 296.3, Code 2023, is amended to read as 23 follows: 24 296.3 Election called. 25 Within ten days of receipt of a petition filed under section 26 296.2 , the president of the board of directors shall call a 27 meeting of the board. The meeting shall be held within thirty 28 days after the petition was received. At the meeting, the 29 board shall call the election, fixing the time of the election , 30 which may be at the time and place of holding the regular 31 school election as required by section 39.2, subsection 4, 32 paragraph “d” . However, if the board determines by unanimous 33 vote that the proposition or propositions requested by a 34 petition to be submitted at an election are grossly unrealistic 35 -19- LSB 1284HV (2) 90 md/jh 19/ 30
H.F. 718 or contrary to the needs of the school district, no election 1 shall be called. If more than one petition has been received 2 by the time the board meets to consider the petition triggering 3 the meeting, the board shall act upon the petitions in the 4 order they were received at the meeting called to consider the 5 initial petition. The decision of the board may be appealed to 6 the state board of education as provided in chapter 290 . The 7 president shall notify the county commissioner of elections of 8 the time of the election. 9 Sec. 38. Section 298.21, unnumbered paragraph 1, Code 2023, 10 is amended to read as follows: 11 The board of directors of any school corporation when 12 authorized by the voters at an election held on a date 13 specified in section 39.2, subsection 4 , paragraph “c” “d” , 14 may issue the negotiable, interest-bearing school bonds of the 15 corporation for borrowing money for any or all of the following 16 purposes: 17 Sec. 39. Section 331.442, subsection 3, Code 2023, is 18 amended to read as follows: 19 3. a. All elections held pursuant to this section shall 20 be held on the date specified in section 39.2, subsection 4, 21 paragraph “d” . 22 b. Notice of the election shall be given by publication as 23 specified in section 331.305 . At the election the ballot used 24 for the submission of the proposition shall be in substantially 25 the form for submitting special questions at general elections. 26 Sec. 40. Section 346.27, subsection 10, paragraph a, Code 27 2023, is amended to read as follows: 28 a. After the incorporation of an authority, and before the 29 sale of any issue of revenue bonds, except refunding bonds, the 30 authority shall submit to the voters the question of whether 31 the authority shall issue and sell revenue bonds. The ballot 32 shall state the amount of the bonds and the purposes for 33 which the authority is incorporated. All registered voters 34 of the county shall be entitled to vote on the question. The 35 -20- LSB 1284HV (2) 90 md/jh 20/ 30
H.F. 718 question may shall be submitted at an election held on a the 1 date specified in section 39.2, subsection 4 , paragraph “a” or 2 “b” , as applicable “d” . An affirmative vote of a majority of 3 the votes cast on the question is required to authorize the 4 issuance and sale of revenue bonds. 5 Sec. 41. Section 357C.10, Code 2023, is amended to read as 6 follows: 7 357C.10 Bonds in anticipation of revenue. 8 Benefited street lighting districts may anticipate the 9 collection of taxes by the levy herein provided, and to carry 10 out the purposes of this chapter may issue bonds payable 11 in not more than ten equal installments, with the rate of 12 interest thereon not exceeding that permitted by chapter 74A . 13 No indebtedness shall be incurred under this chapter until 14 authorized by an election. Such election shall be held and 15 notice given in the same manner as the election provided herein 16 for the authorization of a tax levy, and the same sixty percent 17 vote shall be necessary to authorize indebtedness. Both 18 Subject to section 39.2, subsection 4, both propositions may be 19 submitted to the voters in the same election. 20 Sec. 42. Section 357D.11, Code 2023, is amended to read as 21 follows: 22 357D.11 Bonds in anticipation of revenue. 23 A district may anticipate the collection of taxes by the 24 levy authorized in this chapter , and to carry out the purposes 25 of this chapter may issue bonds payable in not more than ten 26 equal installments with the rate of interest not exceeding 27 that permitted by chapter 74A . An indebtedness shall not be 28 incurred under this chapter until authorized by an election. 29 The election shall be held and notice given in the same manner 30 as provided in section 357D.8 , and the same sixty percent vote 31 shall be necessary to authorize indebtedness. Both Subject to 32 section 39.2, subsection 4, both propositions may be submitted 33 to the voters at the same election. 34 Sec. 43. Section 357E.11, Code 2023, is amended to read as 35 -21- LSB 1284HV (2) 90 md/jh 21/ 30
H.F. 718 follows: 1 357E.11 Bonds in anticipation of revenue. 2 A district, other than a combined district, may anticipate 3 the collection of taxes by the levy authorized in this chapter , 4 and to carry out the purposes of this chapter may issue bonds 5 payable in not more than twenty equal installments with the 6 rate of interest not exceeding that permitted by chapter 74A . 7 An indebtedness shall not be incurred under this section 8 until authorized by an election. The election shall be held 9 and notice given in the same manner as provided in section 10 357E.8 , and the same majority vote is necessary to authorize 11 indebtedness. Both Subject to section 39.2, subsection 4, 12 both propositions may be submitted to the voters at the same 13 election. 14 Sec. 44. Section 357E.11A, subsection 3, Code 2023, is 15 amended to read as follows: 16 3. Except for the issuance of refunding bonds, an 17 indebtedness shall not be incurred under this section until 18 authorized by an election. The election shall be held and 19 notice given in the same manner as provided in section 357E.8 , 20 except that a proposition to authorize indebtedness is 21 approved if sixty percent of those voting on the proposition 22 vote in favor of the proposition. A Subject to section 23 39.2, subsection 4, a proposition for the authorization 24 of indebtedness may be submitted to the voters at the same 25 election as the election under section 357E.8 . 26 Sec. 45. Section 357F.11, Code 2023, is amended to read as 27 follows: 28 357F.11 Bonds in anticipation of revenue. 29 A district may anticipate the collection of taxes authorized 30 in this chapter , and to carry out the purposes of this chapter 31 may issue bonds payable in not more than ten equal installments 32 with the rate of interest not exceeding that permitted by 33 chapter 74A . An indebtedness shall not be incurred under this 34 chapter until authorized by an election. The election shall 35 -22- LSB 1284HV (2) 90 md/jh 22/ 30
H.F. 718 be held and notice given in the same manner as provided in 1 section 357F.8 , and a sixty percent vote shall be necessary 2 to authorize indebtedness. Both Subject to section 39.2, 3 subsection 4, both propositions may be submitted to the voters 4 at the same election. 5 Sec. 46. Section 357G.11, Code 2023, is amended to read as 6 follows: 7 357G.11 Bonds in anticipation of revenue. 8 A district may anticipate the collection of taxes authorized 9 in this chapter , and to carry out the purposes of this chapter 10 may issue bonds payable in not more than ten equal installments 11 with the rate of interest not exceeding that permitted by 12 chapter 74A . An indebtedness shall not be incurred under this 13 chapter until authorized by an election. The election shall 14 be held and notice given in the same manner as provided in 15 section 357G.8 , and a sixty percent vote shall be necessary 16 to authorize indebtedness. Both Subject to section 39.2, 17 subsection 4, both propositions may be submitted to the voters 18 at the same election. 19 Sec. 47. Section 357I.12, Code 2023, is amended to read as 20 follows: 21 357I.12 Bonds in anticipation of revenue. 22 A district may anticipate the collection of taxes by the 23 levy authorized in this chapter , and to carry out the purposes 24 of this chapter may issue bonds payable in not more than ten 25 equal installments with the rate of interest not exceeding 26 that permitted by chapter 74A . An indebtedness shall not be 27 incurred under this chapter until authorized by an election. 28 The election shall be held and notice given in the same manner 29 as provided in section 357I.8 , and the same sixty percent vote 30 shall be necessary to authorize indebtedness. Both Subject to 31 section 39.2, subsection 4, both propositions may be submitted 32 to the voters at the same election. 33 Sec. 48. Section 384.26, subsections 2 and 3, Code 2023, are 34 amended to read as follows: 35 -23- LSB 1284HV (2) 90 md/jh 23/ 30
H.F. 718 2. Before the council may institute proceedings for the 1 issuance of bonds for a general corporate purpose, it shall 2 call a special city election to vote upon the question of 3 issuing the bonds. At the election the proposition must be 4 submitted in the following form: 5 Shall the ............ (insert the name of the city) issue 6 its bonds in an amount not exceeding the amount of $ .... for 7 the purpose of .......... ? 8 3. a. All elections held pursuant to this section shall 9 be held on the date specified in section 39.2, subsection 4, 10 paragraph “d” . 11 b. Notice of the election must be given by publication 12 as required by section 49.53 in a newspaper of general 13 circulation in the city. At the election the ballot used for 14 the submission of the proposition must be in substantially the 15 form for submitting special questions at general elections. 16 Sec. 49. Section 394.2, subsection 1, Code 2023, is amended 17 to read as follows: 18 1. It shall not be necessary to submit to the voters the 19 proposition of issuing bonds for refunding purposes, but prior 20 to the issuance of bonds for other purposes the council shall 21 submit to the voters of the city at a general election or a 22 regular city election on the date specified in section 39.2, 23 subsection 4, paragraph “d” , the proposition of issuing the 24 bonds. Notice of the election on the proposition of issuing 25 bonds shall be published as required by section 49.53 . The 26 notice shall also state whether or not an admission fee is to 27 be charged by the zoo or zoological gardens. 28 Sec. 50. Section 423F.4, subsection 2, paragraph b, Code 29 2023, is amended to read as follows: 30 b. For bonds subject to the requirements of paragraph 31 “a” , if at any time prior to the fifteenth day following the 32 hearing, the secretary of the board of directors receives a 33 petition containing the required number of signatures and 34 asking that the question of the issuance of such bonds be 35 -24- LSB 1284HV (2) 90 md/jh 24/ 30
H.F. 718 submitted to the voters of the school district, the board shall 1 either rescind its adoption of the resolution or direct the 2 county commissioner of elections to submit the question to the 3 registered voters of the school district at an election held on 4 a the date specified in section 39.2, subsection 4 , paragraph 5 “c” “d” . The petition must be signed by eligible electors equal 6 in number to not less than one hundred or thirty percent of 7 the number of voters at the last preceding election of school 8 officials under section 277.1 , whichever is greater. If the 9 board submits the question at an election and a majority of 10 those voting on the question favors issuance of the bonds, the 11 board shall be authorized to issue the bonds. 12 Sec. 51. IMPLEMENTATION OF ACT. Section 25B.2, subsection 13 3, shall not apply to this division of this Act. 14 Sec. 52. APPLICABILITY. This division of this Act applies 15 July 1, 2023, for elections on propositions relating to the 16 issuing of bonds or other indebtedness occurring on or after 17 that date. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill relates to local government funding by modifying 22 school district funding provisions, property tax calculation 23 provisions, and local government budgeting and bonding 24 procedures. 25 DIVISION I —— SCHOOL FOUNDATION PROPERTY TAX. As part 26 of Iowa’s system for funding school districts, Code section 27 257.3 requires each school district to levy each year, for 28 the school general fund, a foundation property tax equal to 29 $5.40 per $1,000 of assessed valuation on all taxable property 30 in the district. An exception to the $5.40 levy rate is for 31 recently reorganized and dissolved school districts. For such 32 districts, the first succeeding year requires a rate of $4.40, 33 the second succeeding year requires a rate of $4.90, and for 34 the third succeeding year and thereafter a rate of $5.40. The 35 -25- LSB 1284HV (2) 90 md/jh 25/ 30
H.F. 718 bill reduces all of the applicable foundation property tax 1 rates by $1.00. 2 The bill provides for an adjustment of property tax credit 3 calculations under Code chapters 425A (family farm tax credit) 4 and 426 (agricultural land tax credit) for property taxes due 5 and payable in the fiscal year beginning July 1, 2023, to 6 account for the change to the property tax levy rate under Code 7 section 257.3 in the bill. 8 Division I takes effect upon enactment and the sections of 9 division I that amend Code section 257.3 apply July 1, 2023, 10 for school budget years beginning on or after that date. 11 DIVISION II —— PROPERTY TAX LIMITATION. The bill provides 12 that for property taxes due and payable in fiscal years 13 beginning on or after July 1, 2024, if the amount of property 14 taxes otherwise calculated to be due and payable on a qualified 15 parcel of residential property or agricultural property exceeds 16 103 percent of the actual amount of property taxes due and 17 payable on the parcel in the immediately preceding fiscal year, 18 such amount due shall be reduced. Similarly, if the amount 19 of property taxes otherwise calculated to be due and payable 20 for such fiscal years on a qualified parcel of commercial 21 property or industrial property exceeds 108 percent of the 22 actual amount of property taxes due and payable on the parcel 23 in the immediately preceding fiscal year, such amount shall 24 be reduced. If, however, improvements or renovations, not 25 amounting to new construction, occur on the property during 26 the base year, as defined in the bill, the threshold amount of 27 property taxes shall be the applicable threshold percentage 28 applicable to the property plus the percentage of the parcel’s 29 taxable value attributable to the improvements or renovations. 30 Improvements or renovations do not include normal and necessary 31 repairs to an existing building or improvement, not amounting 32 to structural replacements or modifications. 33 Under the bill, “property taxes” means annual ad valorem 34 taxes imposed on the parcel which are collectable by the county 35 -26- LSB 1284HV (2) 90 md/jh 26/ 30
H.F. 718 treasurer following application of all applicable exemptions 1 and credits, and shall not include special assessments, amounts 2 levied under Code chapter 468, or taxes under Code chapter 3 435. “Property taxes” also does not include taxes levied 4 as the result of a property tax levy approved at election 5 or that portion of any property tax levy imposed that is 6 for the payment of principal and interest on bonds or other 7 indebtedness the issuance of which was approved at election, 8 including refunding bonds issued for the repayment of bonds 9 that were approved at election. 10 The limitations established in the bill apply to qualified 11 parcels. “Qualified parcel” means a parcel that is not located 12 in an urban renewal area under Code chapter 403 or an urban 13 revitalization area under Code chapter 404, is not wind energy 14 conversion property, and for which none of the following apply: 15 (1) the parcel changed ownership during the base year; (2) 16 new construction occurred on the parcel during the base year; 17 (3) the parcel’s assessment for the base year was a partial 18 assessment as the result of incomplete new construction or 19 improvements; (4) the parcel was omitted from assessment or 20 fraudulently withheld from assessment in the base year; (5) 21 the parcel’s property taxes were suspended or abated under 22 Code sections 427.8, 427.9, and 427.10; or (6) the parcel’s 23 classification is different from the base year. 24 If the total amount of property taxes due and payable on the 25 parcel exceeds the applicable threshold for the parcel under 26 the bill, the amount of property taxes due and payable to each 27 taxing authority that certified for levy property taxes on the 28 parcel in excess of the applicable threshold percentage of 29 such amount levied by that taxing authority on the parcel in 30 the immediately preceding fiscal year shall be reduced by the 31 amount by which the parcel’s total amount of property taxes due 32 and payable for all taxing authorities exceeds the applicable 33 threshold for the parcel. The amount of the reduction is 34 proportionately applied among the various levies for property 35 -27- LSB 1284HV (2) 90 md/jh 27/ 30
H.F. 718 taxes, or portions thereof, of those taxing authorities that 1 certified for levy property taxes on the parcel in excess of 2 the applicable threshold percentage of such amount levied 3 by that taxing authority on the parcel in the immediately 4 preceding fiscal year. The reductions are to be made by the 5 county auditor prior to delivery of the tax list prescribed in 6 Code chapter 443 to ensure accurate statement of taxes under 7 Code section 445.5. 8 The bill makes corresponding changes to various other 9 provisions of the Code relating to the calculation and 10 collection of property tax amounts. 11 DIVISION III —— LOCAL GOVERNMENT BUDGETS. The bill 12 modifies provisions relating to the process of approving local 13 government budgets. 14 The bill amends certain municipality budgeting procedures 15 under Code chapter 24. A municipality, as defined in Code 16 section 24.2, includes public bodies or corporations that 17 have power to levy or certify a tax or sum of money to be 18 collected by taxation, except a county, city, drainage 19 district, township, or road district. The bill requires 20 each municipality with property tax revenues of $5,000 or 21 more in the immediately preceding fiscal year to direct the 22 county treasurer to send to each owner or taxpayer within the 23 municipality by regular mail an individual notice containing 24 specified information relating to property taxes certified for 25 the current fiscal year and the applicable levy rates, proposed 26 property tax amounts for the budget year and the applicable 27 levy rates, the effective property tax levy rates, as defined 28 in the bill, reasons for any proposed increases, and property 29 assessment and property tax information related to the owner’s 30 or taxpayer’s property. The bill also provides that such 31 municipalities must also include such information, excluding 32 specific owner or taxpayer information, in the notice of the 33 public hearing on the municipalities’ budget estimates. 34 The bill establishes similar requirements for counties 35 -28- LSB 1284HV (2) 90 md/jh 28/ 30
H.F. 718 under Code chapter 331, townships under Code chapter 359, and 1 cities under Code chapter 384. The bill also provides that if 2 all applicable information is available in a timely manner, 3 the county treasurer may consolidate all required individual 4 notices required for the various local governments under 5 the bill so that all applicable notices appear on a single 6 individual notice for each owner or taxpayer. 7 The division of the bill may include a state mandate as 8 defined in Code section 25B.3. The bill makes inapplicable 9 Code section 25B.2, subsection 3, which would relieve a 10 political subdivision from complying with a state mandate if 11 funding for the cost of the state mandate is not provided or 12 specified. Therefore, political subdivisions are required to 13 comply with any state mandate included in the division of the 14 bill. 15 The division of the bill applies to county, city, township, 16 and municipality budgets for fiscal years beginning on or after 17 July 1, 2024. 18 DIVISION IV —— BOND ELECTIONS. The bill modifies the date 19 upon which elections must be held for the approval of the 20 issuance of bonds by political subdivisions of the state. 21 Generally, such special elections can be held on various dates 22 for cities, counties, school districts, and merged areas, as 23 specified in Code section 39.2, subsection 4, or specified 24 in other provisions of law. The bill provides that for any 25 political subdivision of this state, if the special election 26 is in whole or in part for the question of issuing bonds or 27 other indebtedness, the first Tuesday after the first Monday 28 in November of each even-numbered year, which is the date of 29 the general election. The bill makes corresponding changes 30 to various other Code chapters governing the approval of the 31 issuance of bonds at election. 32 The bill also provides that in addition to any other notice 33 related to the election required by law to be published, 34 posted, or provided, if the election is subject to the new date 35 -29- LSB 1284HV (2) 90 md/jh 29/ 30
H.F. 718 requirement, the commissioner of elections (county auditor) 1 shall not less than 10 nor more than 20 days before the day of 2 each election mail to each registered voter of the applicable 3 jurisdiction a notice of the election that includes the full 4 text of the public measure to be voted upon at the election. 5 The division of the bill may include a state mandate as 6 defined in Code section 25B.3. The bill makes inapplicable 7 Code section 25B.2, subsection 3, which would relieve a 8 political subdivision from complying with a state mandate if 9 funding for the cost of the state mandate is not provided or 10 specified. Therefore, political subdivisions are required to 11 comply with any state mandate included in the division of the 12 bill. 13 The division of the bill applies July 1, 2023, for elections 14 on propositions relating to the issuing of bonds or other 15 indebtedness occurring on or after that date. 16 -30- LSB 1284HV (2) 90 md/jh 30/ 30