Senate File 356 - Introduced SENATE FILE 356 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1124) A BILL FOR An Act relating to local government property taxes, financial 1 authority, operations, and budgets, and including effective 2 date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1100SV (2) 90 md/jh

S.F. 356 DIVISION I 1 COUNTY PROPERTY TAXES AND BUDGETS 2 Section 1. Section 331.301, subsection 10, paragraph e, 3 subparagraph (1), Code 2023, is amended to read as follows: 4 (1) (a) The board must follow substantially the 5 authorization procedures of section 331.443 to authorize 6 a lease or lease-purchase contract for personal property 7 which is payable from the general fund. The board must 8 follow substantially the authorization procedures of section 9 331.443 to authorize a lease or lease-purchase contract for 10 real property which is payable from the general fund if the 11 principal amount of the lease-purchase contract does not exceed 12 the following limits: 13 (i) Four Two hundred eighty thousand dollars in a county 14 having a population of twenty-five thousand or less. 15 (ii) Five Three hundred fifty thousand dollars in a county 16 having a population of more than twenty-five thousand but not 17 more than fifty thousand. 18 (iii) Six Four hundred twenty thousand dollars in a county 19 having a population of more than fifty thousand but not more 20 than one hundred thousand. 21 (iv) Eight Five hundred sixty thousand dollars in a county 22 having a population of more than one hundred thousand but not 23 more than two hundred thousand. 24 (v) One million Seven hundred thousand dollars in a county 25 having a population of more than two hundred thousand. 26 (b) However, if the principal amount of a lease or 27 lease-purchase contract pursuant to this subparagraph (1) is 28 less than twenty-five seventeen thousand five hundred dollars, 29 the board may authorize the lease or lease-purchase contract 30 without following the authorization procedures of section 31 331.443 . 32 Sec. 2. Section 331.402, subsection 3, paragraph d, 33 subparagraph (1), subparagraph divisions (a), (b), (c), (d), 34 and (e), Code 2023, are amended to read as follows: 35 -1- LSB 1100SV (2) 90 md/jh 1/ 36

S.F. 356 (a) Four Two hundred eighty thousand dollars in a county 1 having a population of twenty-five thousand or less. 2 (b) Five Three hundred fifty thousand dollars in a county 3 having a population of more than twenty-five thousand but not 4 more than fifty thousand. 5 (c) Six Four hundred twenty thousand dollars in a county 6 having a population of more than fifty thousand but not more 7 than one hundred thousand. 8 (d) Eight Five hundred sixty thousand dollars in a county 9 having a population of more than one hundred thousand but not 10 more than two hundred thousand. 11 (e) One million Seven hundred thousand dollars in a county 12 having a population of more than two hundred thousand. 13 Sec. 3. Section 331.403, subsection 1, Code 2023, is amended 14 to read as follows: 15 1. Not later than December 1 of each year on forms and 16 pursuant to instructions prescribed by the department of 17 management, a county shall prepare an annual financial report 18 showing for each county fund the financial condition as of 19 June 30 and the results of operations for the year then ended. 20 Copies of the report shall be maintained as a public record at 21 the auditor’s office and shall be filed with the director of 22 the department of management and with the auditor of state by 23 December 1. A summary of the report, in a form prescribed by 24 the director, shall be published by each county not later than 25 December 1 of each year in one or more newspapers which meet 26 the requirements of section 618.14 . Beginning with the annual 27 financial report filed by December 1, 2024, each report shall 28 include a list of bonds, notes, or other obligations issued by 29 the county during the preceding fiscal year payable from any 30 source, including the amount of the issuance, the project or 31 purpose of the issuance, whether the issuance was approved 32 at election or eligible to be subject to a petition for an 33 election, and identification of issuances from the fiscal year 34 or prior fiscal years related to the same project or purpose. 35 -2- LSB 1100SV (2) 90 md/jh 2/ 36

S.F. 356 Sec. 4. Section 331.423, Code 2023, is amended to read as 1 follows: 2 331.423 Basic levies —— maximums —— adjustments . 3 Annually, the board may certify basic levies, subject to the 4 following limits: 5 1. For general county services , : 6 a. For fiscal years beginning before July 1, 2024, three 7 dollars and fifty cents per thousand dollars of the assessed 8 value of all taxable property in the county. 9 b. For the fiscal year beginning July 1, 2024, a levy rate 10 per thousand dollars of taxable value equal to the sum of three 11 dollars and fifty cents plus the sum of the amount per thousand 12 dollars of taxable value levied by the county under section 13 331.424, subsection 1, paragraph “a” , subparagraph (6), Code 14 2023, for the fiscal year beginning July 1, 2023, and the sum 15 of the amount per thousand dollars of taxable value levied for 16 general county services under section 331.426, Code 2023, for 17 the fiscal year beginning July 1, 2023. 18 c. (1) For each fiscal year beginning on or after July 1, 19 2025, subject to paragraph “d” , the greater of three dollars 20 and fifty cents per thousand dollars of assessed value used to 21 calculate taxes for the budget year and the amount determined 22 under paragraph “b” , as adjusted under subparagraph (2), if 23 applicable. 24 (2) If the total assessed value used to calculate taxes for 25 general county services for the budget year exceeds one hundred 26 two and one-half percent of the total assessed value used to 27 calculate taxes for the current fiscal year, the levy rate per 28 thousand dollars determined under paragraph “b” , as previously 29 adjusted under this subparagraph, if applicable, shall be 30 reduced to a rate per one thousand dollars of assessed value 31 that is equal to one thousand multiplied by the quotient of the 32 current fiscal year’s actual property tax dollars certified for 33 levy under this subsection 1 divided by one hundred two and 34 one-half percent of the total assessed value used to calculate 35 -3- LSB 1100SV (2) 90 md/jh 3/ 36

S.F. 356 taxes for the current fiscal year. 1 d. In addition to the limitation under paragraph “c” , 2 for fiscal years beginning on or after July 1, 2025, if the 3 county’s actual levy rate imposed under this subsection for the 4 current fiscal year is three dollars and fifty cents or less 5 per thousand dollars of assessed value and the total assessed 6 value used to calculate taxes for the budget year exceeds one 7 hundred three and twenty-five hundredths percent of the total 8 assessed value used to calculate taxes for the current fiscal 9 year, the levy rate imposed under this subsection for the 10 budget year shall not exceed a rate per one thousand dollars 11 of assessed value that is equal to one thousand multiplied by 12 the quotient of the current fiscal year’s actual property tax 13 dollars certified for levy under this subsection 1 divided by 14 one hundred three and twenty-five hundredths percent of the 15 total assessed value used to calculate taxes for the current 16 fiscal year. 17 2. For rural county services , : 18 a. For fiscal years beginning before July 1, 2024, three 19 dollars and ninety-five cents per thousand dollars of the 20 assessed value of taxable property in the county outside of 21 incorporated city areas. 22 b. For the fiscal year beginning July 1, 2024, a levy rate 23 per thousand dollars of taxable value equal to the sum of three 24 dollars and ninety-five cents plus the sum of the amount per 25 thousand dollars of taxable value levied for rural county 26 services under section 331.426, Code 2023, for the fiscal year 27 beginning July 1, 2023. 28 c. (1) For each fiscal year beginning on or after July 1, 29 2025, subject to paragraph “d” , the greater of three dollars 30 and ninety-five cents per thousand dollars of assessed value 31 used to calculate taxes for the budget year and the amount 32 determined under paragraph “b” , as adjusted under subparagraph 33 (2), if applicable. 34 (2) If the total assessed value used to calculate taxes 35 -4- LSB 1100SV (2) 90 md/jh 4/ 36

S.F. 356 for rural county services under this subsection for the budget 1 year exceeds one hundred two and one-half percent of the total 2 assessed value used to calculate taxes for the current fiscal 3 year, the levy rate per thousand dollars determined under 4 paragraph “b” , as previously adjusted under this subparagraph, 5 if applicable, shall be reduced to a rate per one thousand 6 dollars of assessed value that is equal to one thousand 7 multiplied by the quotient of the current fiscal year’s actual 8 property tax dollars certified for levy under this subsection 2 9 divided by one hundred two and one-half percent of the total 10 assessed value used to calculate taxes for the current fiscal 11 year. 12 d. In addition to the limitation under paragraph “c” , 13 for fiscal years beginning on or after July 1, 2025, if the 14 county’s actual levy rate imposed under this subsection for 15 the current fiscal year is three dollars and ninety-five 16 cents or less per thousand dollars of assessed value and the 17 total assessed value used to calculate taxes for the budget 18 year exceeds one hundred three and twenty-five hundredths 19 percent of the total assessed value used to calculate taxes 20 for the current fiscal year, the levy rate imposed under this 21 subsection for the budget year shall not exceed a rate per 22 one thousand dollars of assessed value that is equal to one 23 thousand multiplied by the quotient of the current fiscal 24 year’s actual property tax dollars certified for levy under 25 this subsection 2 divided by one hundred three and twenty-five 26 hundredths percent of the total assessed value used to 27 calculate taxes for the current fiscal year. 28 3. For purposes of this section: 29 a. “Budget year” means the same as defined in section 30 331.433A, subsection 1. 31 b. “Current fiscal year” means the same as defined in 32 section 331.433A, subsection 1. 33 Sec. 5. Section 331.424, subsection 1, paragraph a, 34 subparagraph (6), Code 2023, is amended by striking the 35 -5- LSB 1100SV (2) 90 md/jh 5/ 36

S.F. 356 subparagraph. 1 Sec. 6. Section 331.426, Code 2023, is amended to read as 2 follows: 3 331.426 Additions to basic levies. 4 1. If a county has unusual circumstances a natural disaster , 5 creating a need for additional property taxes for general 6 county services or rural county services in excess of the 7 amount that can be raised by the levies otherwise permitted 8 under sections 331.423 through 331.425 , the board may certify 9 additions to each of the basic levies as follows: by complying 10 with the provisions of subsection 2. 11 1. The basis for justifying an additional property tax under 12 this section must be one or more of the following: 13 a. An unusual increase in population as determined by the 14 preceding certified federal census. 15 b. A natural disaster or other emergency. 16 c. Unusual problems relating to major new functions required 17 by state law. 18 d. Unusual staffing problems. 19 e. Unusual need for additional moneys to permit continuance 20 of a program which provides substantial benefit to county 21 residents. 22 f. Unusual need for a new program which will provide 23 substantial benefit to county residents, if the county 24 establishes the need and the amount of necessary increased 25 cost. 26 g. A reduced or unusually low growth rate in the property 27 tax base of the county. 28 2. a. The public notice of a hearing on the county budget 29 required by section 331.434, subsection 3 , shall include the 30 following additional information for the applicable class of 31 services related to the natural disaster : 32 (1) A statement that the accompanying budget summary 33 requires a proposed basic property tax rate exceeding the 34 maximum rate established by the general assembly. 35 -6- LSB 1100SV (2) 90 md/jh 6/ 36

S.F. 356 (2) A comparison of the proposed basic tax rate with the 1 maximum basic tax rate, and the dollar amount of the difference 2 between the proposed rate and the maximum rate. 3 (3) A statement of the major reasons resulting from the 4 natural disaster for the difference between the proposed basic 5 tax rate and the maximum basic tax rate. 6 b. The information required by this subsection shall be 7 published in a conspicuous form as prescribed by the committee. 8 Sec. 7. Section 331.433A, subsection 5, paragraph b, Code 9 2023, is amended to read as follows: 10 b. (1) If the sum of the maximum property tax dollars 11 for the budget year specified in the resolution for either 12 general county services or for rural county services under the 13 levies specified in subsection 2 , paragraphs “a” and “b” , as 14 applicable, exceeds one hundred two percent of the sum of the 15 current fiscal year’s actual property taxes certified for levy 16 for general county services or rural county services under the 17 levies specified in subsection 2 , paragraphs “a” and “b” , as 18 applicable, the board shall be required to adopt the resolution 19 by a two-thirds majority of the membership of the board. 20 (2) (a) For the budget year beginning July 1, 2024, the 21 amount of the current fiscal year’s actual property taxes 22 certified for levy for general county services shall include 23 amounts certified for levy under section 331.424, subsection 1, 24 paragraph “a” , subparagraph (6), Code 2023, and under section 25 331.426, Code 2023. 26 (b) For the budget year beginning July 1, 2024, the amount 27 of the current fiscal year’s actual property taxes certified 28 for levy for rural county services shall include amounts 29 certified for levy under Code section 331.426, Code 2023. 30 Sec. 8. Section 331.441, subsection 2, paragraph b, 31 subparagraph (5), subparagraph divisions (a), (b), (c), (d), 32 and (e), Code 2023, are amended to read as follows: 33 (a) Six Four hundred twenty thousand dollars in a county 34 having a population of twenty-five thousand or less. 35 -7- LSB 1100SV (2) 90 md/jh 7/ 36

S.F. 356 (b) Seven Five hundred fifty twenty-five thousand dollars 1 in a county having a population of more than twenty-five 2 thousand but not more than fifty thousand. 3 (c) Nine Six hundred thirty thousand dollars in a county 4 having a population of more than fifty thousand but not more 5 than one hundred thousand. 6 (d) One million two Eight hundred forty thousand dollars in 7 a county having a population of more than one hundred thousand 8 but not more than two hundred thousand. 9 (e) One million five hundred fifty thousand dollars in a 10 county having a population of more than two hundred thousand. 11 Sec. 9. Section 331.441, subsection 2, paragraph c, 12 subparagraph (11), Code 2023, is amended by striking the 13 subparagraph. 14 Sec. 10. Section 331.442, subsection 5, paragraph a, 15 subparagraphs (1), (2), and (3), Code 2023, are amended to read 16 as follows: 17 (1) In counties having a population of twenty thousand 18 or less, in an amount of not more than one hundred seventy 19 thousand dollars. 20 (2) In counties having a population of over twenty thousand 21 and not over fifty thousand, in an amount of not more than two 22 one hundred forty thousand dollars. 23 (3) In counties having a population of over fifty thousand, 24 in an amount of not more than three two hundred ten thousand 25 dollars. 26 Sec. 11. EFFECTIVE DATE. This division of this Act takes 27 effect July 1, 2024. 28 Sec. 12. APPLICABILITY. This division of this Act applies 29 to taxes and budgets for fiscal years beginning on or after 30 July 1, 2024. 31 DIVISION II 32 CITY PROPERTY TAXES AND BUDGETS 33 Sec. 13. Section 24.48, subsection 5, Code 2023, is amended 34 by adding the following new paragraph: 35 -8- LSB 1100SV (2) 90 md/jh 8/ 36

S.F. 356 NEW PARAGRAPH . c. For budgets for fiscal years beginning on 1 or after July 1, 2024, if the political subdivision is a city, 2 a suspension of the statutory property tax levy limitations 3 under this section shall only be approved by the state appeal 4 board in the event of a natural disaster. 5 Sec. 14. Section 28M.5, subsection 1, Code 2023, is amended 6 to read as follows: 7 1. The commission, with the approval of the board of 8 supervisors of participating counties and the city council 9 of participating cities in the chapter 28E agreement, may 10 levy annually a tax not to exceed ninety-five cents per 11 thousand dollars of the assessed value of all taxable property 12 in a regional transit district to the extent provided in 13 this section . The chapter 28E agreement may authorize the 14 commission to levy the tax at different rates within the 15 participating cities and counties in amounts sufficient to meet 16 the revenue responsibilities of such cities and counties as 17 allocated in the budget adopted by the commission. However, 18 for a city participating in a regional transit district, the 19 total of all the tax levies imposed in the city pursuant 20 to section 384.12, subsection 10 1 , and this section shall 21 not exceed the aggregate of ninety-five cents per thousand 22 dollars of the assessed value of all taxable property in the 23 participating city. 24 Sec. 15. Section 37.8, Code 2023, is amended to read as 25 follows: 26 37.8 Levy for Cost of development, operation, and 27 maintenance. 28 For the development, operation, and maintenance of a 29 building or monument constructed, purchased, or donated under 30 this chapter , a city may levy a tax not to exceed eighty-one 31 cents per thousand dollars of assessed value on all the taxable 32 property within the city, as provided in section 384.12, 33 subsection 2 utilize taxes levied under section 384.1 . 34 Sec. 16. Section 357G.8, Code 2023, is amended to read as 35 -9- LSB 1100SV (2) 90 md/jh 9/ 36

S.F. 356 follows: 1 357G.8 Election on proposed levy and of candidates for 2 trustees —— funding of operations . 3 1. When a preliminary plat has been approved by the council, 4 an election shall be held within the district within sixty days 5 to approve or disapprove the levy of an initial tax of not 6 more than one dollar per thousand dollars of assessed value 7 on all the taxable property within the district and to choose 8 candidates for the offices of trustees of the district. The 9 ballot shall set out the reason for the tax and the amount 10 needed. The tax shall be set to raise only the amount needed. 11 Notice of the election, including the time and place of holding 12 the election, shall be given as provided in section 357G.4 . 13 The vote shall be by ballot which shall state clearly the 14 proposition to be voted upon and any registered voter residing 15 within the district at the time of the election may vote. It 16 is not mandatory for the county commissioner of elections 17 to conduct elections held pursuant to this chapter , but the 18 elections shall be conducted in accordance with chapter 49 19 where not in conflict with this chapter . Judges shall be 20 appointed to serve without pay by the council from among the 21 registered voters of the district to be in charge of the 22 election. The proposition is approved if sixty percent of 23 those voting on the proposition vote in favor of it. 24 2. a. If the tax authorized under subsection 1 is 25 insufficient to provide the services authorized under this 26 chapter , the trustees may levy an additional annual tax, at 27 a rate necessary to provide the authorized services, if such 28 authority for an additional tax is approved at election held 29 separately and after the election held under subsection 1 . 30 The district’s operations shall be funded from general fund 31 property tax revenues certified by the city and levied under 32 section 384.1. 33 b. By resolution, the council may submit to the registered 34 voters of the district the proposition of levying the 35 -10- LSB 1100SV (2) 90 md/jh 10/ 36

S.F. 356 additional annual tax according to the election procedures 1 under subsection 1 . 2 c. (1) After adoption of the resolution under paragraph 3 “b” , the The board of trustees shall coordinate efforts with 4 the local emergency medical services agencies to establish 5 a district advisory council to assist in researching and 6 assessing the service needs of the district and guiding 7 implementation of services in the district within a council 8 structure. 9 (2) The district advisory council established under 10 subparagraph (1) shall recommend to the board of trustees 11 an amount of funding to be specified on the ballot for the 12 election held under this subsection 2 to be requested from the 13 city to fund the district and shall annually assess and review 14 the emergency medical services needs of the district and shall 15 include the results of such review and assessment in an annual 16 report filed with the board of trustees. The annual report 17 shall be publicly available upon filing with the board of 18 trustees. The board of trustees shall receive public comment 19 regarding the report at one or more meetings of the board 20 of trustees. Any meeting of the board of trustees at which 21 public comment on the annual report is heard shall be at least 22 fourteen days following the date the annual report is filed 23 with the board of trustees. 24 d. The proposition is adopted if a majority of those 25 voting on the proposition at the election approves it. If 26 the proposition is approved at election, the trustees may 27 impose the additional annual tax beginning with the fiscal 28 year beginning July 1 following the election at which the 29 proposition was approved. The proposition is not affected by a 30 change in the boundaries of the district. 31 e. Discontinuance of the authority to impose an additional 32 tax under this chapter shall be by petition and election. 33 Upon petition of twenty-five percent of the resident eligible 34 electors, the board of trustees shall submit to the voters 35 -11- LSB 1100SV (2) 90 md/jh 11/ 36

S.F. 356 of the district the question of whether to discontinue the 1 authority to impose the additional tax according to the 2 election procedures under subsection 1 . If a majority of those 3 voting on the question of discontinuance of the trustees’ 4 authority to impose the tax favors discontinuance, the trustees 5 shall not impose the additional tax for any fiscal year 6 beginning after the election approving the discontinuance, 7 unless imposition is subsequently again authorized at election. 8 Following discontinuance of the authority to impose the 9 additional tax, authority to reimpose the additional tax 10 requires approval in accordance with this subsection . 11 Sec. 17. Section 357G.10, Code 2023, is amended to read as 12 follows: 13 357G.10 Trustees’ powers. 14 The trustees may purchase, own, rent, or maintain emergency 15 medical services apparatus or equipment within the state or 16 outside the territorial jurisdiction and boundary limits of 17 this state, provide housing for such apparatus and equipment, 18 provide emergency medical service and facilities, and may 19 request the city certify for levy an amount of taxes as 20 provided in section 357G.8 . The trustees may purchase 21 material, employ emergency medical service and other personnel, 22 and may perform all other acts necessary to properly maintain 23 and operate the district. The trustees may contract with any 24 other city or county or public or private agency under chapter 25 28E for the purpose of providing emergency medical services 26 under this chapter . The trustees are allowed necessary 27 expenses in the discharge of their duties, but they shall not 28 receive a salary. 29 Sec. 18. Section 357G.12, Code 2023, is amended to read as 30 follows: 31 357G.12 Dissolution of district. 32 Upon petition of thirty-five percent of the resident 33 eligible electors, the council may dissolve a district and 34 dispose of any remaining property, the proceeds of which shall 35 -12- LSB 1100SV (2) 90 md/jh 12/ 36

S.F. 356 first be applied against outstanding obligations and any 1 balance shall be applied to tax credit of property owners of 2 the district. The council shall continue to levy a tax after 3 dissolution of a district, of not to exceed twenty-seven cents 4 per thousand dollars of assessed value on all the taxable 5 property of the district, appropriate taxes levied under 6 section 384.1 until all outstanding obligations of the district 7 are paid. 8 Sec. 19. Section 357G.13, Code 2023, is amended to read as 9 follows: 10 357G.13 Adding property to district. 11 Any property in an unincorporated area contiguous to the 12 boundaries of an established district which is annexed by the 13 city shall be included in the district. The tax levy for the 14 next year shall be applied to the property and on the first day 15 of the next fiscal year, the property shall become a part of 16 the district. 17 Sec. 20. Section 357J.18, Code 2023, is amended to read as 18 follows: 19 357J.18 Transition —— emergency medical services district 20 taxes discontinued. 21 When the boundary lines of the emergency response district 22 include all or a portion of an emergency medical services 23 district under chapter 357F or chapter 357G and the emergency 24 response district has certified a tax to be levied on property 25 located within the emergency medical services district for 26 the purpose of emergency medical service, the emergency 27 medical services district trustees shall no longer levy the 28 taxes authorized in section 357F.8 or section 357G.8 utilize 29 tax revenue levied under section 384.1 for emergency medical 30 services district purposes in that portion of such emergency 31 medical services district that is provided services by the 32 emergency response district. Any indebtedness incurred by 33 an emergency medical services district under chapter 357F 34 or chapter 357G for a service now provided by the emergency 35 -13- LSB 1100SV (2) 90 md/jh 13/ 36

S.F. 356 response district shall be assumed by the emergency response 1 district. 2 Sec. 21. Section 384.1, Code 2023, is amended to read as 3 follows: 4 384.1 Taxes certified. 5 1. A city may certify taxes to be levied by the county 6 on all taxable property within the city limits, for all city 7 government purposes. However, the 8 2. a. Notwithstanding subsection 3, the tax levied by 9 a city on tracts of land and improvements thereon used and 10 assessed for agricultural or horticultural purposes, shall 11 not exceed three dollars and three-eighths cents per thousand 12 dollars of assessed value in any year. Improvements located 13 on such tracts of land and not used for agricultural or 14 horticultural purposes and all residential dwellings are 15 subject to the same rate of tax levied by the city on all other 16 taxable property within the city. A 17 3. a. For fiscal years beginning before July 1, 2024, a 18 city’s tax levy for the general fund shall not exceed eight 19 dollars and ten cents per thousand dollars of taxable assessed 20 value used to calculate taxes in any tax year, except for the 21 levies authorized in section 384.12 . 22 b. For the fiscal year beginning July 1, 2024, a city’s 23 tax levy for the general fund, except for levies authorized in 24 section 384.12, shall not exceed the sum of eight dollars and 25 ten cents per thousand dollars of taxable value plus the sum of 26 the following for the city, as applicable: 27 (1) The amount per thousand dollars of taxable value levied 28 by or on behalf of the city under section 384.8, Code 2023, for 29 the fiscal year beginning July 1, 2023. 30 (2) The total amount per thousand dollars of taxable value 31 levied by or on behalf of the city under section 384.12, 32 subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, 18, 33 and 20, Code 2023, for the fiscal year beginning July 1, 2023. 34 (3) The amount per thousand dollars of taxable value levied 35 -14- LSB 1100SV (2) 90 md/jh 14/ 36

S.F. 356 by the city under section 24.48, Code 2023, for the fiscal year 1 beginning July 1, 2023. 2 c. (1) For each fiscal year beginning on or after July 3 1, 2025, subject to paragraph “d” , a city’s tax levy for the 4 general fund, except for levies authorized in section 384.12, 5 shall not exceed in any tax year the greater of eight dollars 6 and ten cents per thousand dollars of assessed value used to 7 calculate taxes for the budget year and the amount determined 8 under paragraph “b” , as adjusted under subparagraph (2), if 9 applicable. 10 (2) If the total assessed value used to calculate taxes 11 for the budget year exceeds one hundred two and one-half 12 percent of the total assessed value used to calculate taxes for 13 the current fiscal year, the levy rate per thousand dollars 14 determined under paragraph “b” , as previously adjusted under 15 this subparagraph, if applicable, shall be reduced to a rate 16 per one thousand dollars of assessed value that is equal to 17 one thousand multiplied by the quotient of the current fiscal 18 year’s actual property tax dollars certified for levy under 19 this section divided by one hundred two and one-half percent 20 of the total assessed value used to calculate taxes for the 21 current fiscal year. 22 d. In addition to the limitation under paragraph “c” , for 23 fiscal years beginning on or after July 1, 2025, if the city’s 24 actual levy rate imposed under this section for the current 25 fiscal year is eight dollars and ten cents or less per thousand 26 dollars of assessed value and the total assessed value used to 27 calculate taxes for the budget year exceeds one hundred three 28 and twenty-five hundredths percent of the total assessed value 29 used to calculate taxes for the current fiscal year, the levy 30 rate imposed under this section for the budget year shall not 31 exceed a rate per one thousand dollars of assessed value that 32 is equal to one thousand multiplied by the quotient of the 33 current fiscal year’s actual property tax dollars certified 34 for levy under this section divided by one hundred three and 35 -15- LSB 1100SV (2) 90 md/jh 15/ 36

S.F. 356 twenty-five hundredths percent of the total assessed value used 1 to calculate taxes for the current fiscal year. 2 4. For purposes of this section: 3 a. “Budget year” means the same as defined in section 4 384.15A, subsection 1. 5 b. “Current fiscal year” means the same as defined in 6 section 384.15A, subsection 1. 7 Sec. 22. Section 384.12, Code 2023, is amended to read as 8 follows: 9 384.12 Additional taxes. 10 A city may certify, for the general fund levy, taxes which 11 are not subject to the limit provided in section 384.1 , and 12 which are in addition to any other moneys the city may wish to 13 spend for such purposes, as follows: 14 1. A tax not to exceed thirteen and one-half cents 15 per thousand dollars of assessed value for the support of 16 instrumental or vocal musical groups, one or more organizations 17 which have tax-exempt status under section 501(c)(3) of 18 the Internal Revenue Code and are organized and operated 19 exclusively for artistic and cultural purposes, or any of these 20 purposes, subject to the following: 21 a. Upon receipt of a petition valid under the provisions of 22 section 362.4 , the council shall submit to the voters at the 23 next regular city election the question of whether a tax shall 24 be levied. 25 b. If a majority approves the levy, it may be imposed. 26 c. The levy can be eliminated by the same procedure of 27 petition and election. 28 d. A tax authorized by an election held prior to the 29 effective date of the city code may be continued until 30 eliminated by the council, or by petition and election. 31 2. A tax not to exceed eighty-one cents per thousand dollars 32 of assessed value for development, operation, and maintenance 33 of a memorial building or monument, subject to the provisions 34 of subsection 1 . 35 -16- LSB 1100SV (2) 90 md/jh 16/ 36

S.F. 356 3. A tax not to exceed thirteen and one-half cents per 1 thousand dollars of assessed value for support of a symphony 2 orchestra, subject to the provisions of subsection 1 . 3 4. A tax not to exceed twenty-seven cents per thousand 4 dollars of assessed value for the operation of cultural and 5 scientific facilities, subject to the provisions of subsection 6 1 , except that the question may be submitted on the council’s 7 own motion. 8 5. A tax to aid in the construction of a county bridge, 9 subject to the provisions of subsection 1 , except that the 10 question must be submitted at a special election. The expense 11 of a special election under this subsection must be paid by the 12 county. The notice of the special election must include full 13 details of the proposal, including the location of the proposed 14 bridge, the rate of tax to be levied, and all other conditions. 15 6. A tax to aid a company incorporated under the laws of 16 this state in the construction of a highway or combination 17 bridge across any navigable boundary river of this state, 18 commencing or terminating in the city and suitable for use 19 as highway, or for both highway and railway purposes. This 20 tax levy is subject to the provisions of subsections 1 and 5 . 21 The levy is limited to one dollar and thirty-five cents per 22 thousand dollars of the assessed value of taxable property in 23 the city. The estimated cost of the bridge must be at least 24 ten thousand dollars, and the city aid may not exceed one-half 25 of the estimated cost. The notice of the special election 26 must include the name of the corporation to be aided, and all 27 conditions required of the corporation. Tax moneys received 28 for this purpose may not be paid over by the county treasurer 29 until the city has filed a statement that the corporation has 30 complied with all conditions. 31 7. If a tax has been voted for aid of a bridge under 32 subsection 6 , a further tax may be voted for the purpose of 33 purchasing the bridge, subject to the provisions of subsection 34 1 . The levy under this subsection is limited to three dollars 35 -17- LSB 1100SV (2) 90 md/jh 17/ 36