S.F. _____ 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 1100XC (14) 90 md/jh 1/ 35

S.F. _____ (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, 2023, 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 1100XC (14) 90 md/jh 2/ 35

S.F. _____ 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, 2023, 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, 2023, 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, 2022, 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, 2022. 18 c. (1) For each fiscal year beginning on or after July 1, 19 2024, 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 33 for levy under this subsection 1 divided by the total assessed 34 value used to calculate taxes for the budget year. 35 -3- LSB 1100XC (14) 90 md/jh 3/ 35

S.F. _____ d. In addition to the limitation under paragraph “c” , 1 for fiscal years beginning on or after July 1, 2024, if the 2 county’s actual levy rate imposed under this subsection for the 3 current fiscal year is three dollars and fifty cents or less 4 per thousand dollars of assessed value and the total assessed 5 value used to calculate taxes for the budget year exceeds one 6 hundred three and twenty-five hundredths percent of the total 7 assessed value used to calculate taxes for the current fiscal 8 year, the levy rate imposed under this subsection for the 9 budget year shall not exceed the rate necessary to levy taxes 10 under this subsection in an amount equal to one hundred three 11 and twenty-five hundredths percent of the amount levied under 12 this subsection for the current fiscal year. 13 2. For rural county services , : 14 a. For fiscal years beginning before July 1, 2023, three 15 dollars and ninety-five cents per thousand dollars of the 16 assessed value of taxable property in the county outside of 17 incorporated city areas. 18 b. (1) For the fiscal year beginning July 1, 2023, a levy 19 rate per thousand dollars of taxable value equal to the sum of 20 three dollars and ninety-five cents plus the sum of the amount 21 per thousand dollars of taxable value levied for rural county 22 services under section 331.426, Code 2023, for the fiscal year 23 beginning July 1, 2022. 24 c. (1) For each fiscal year beginning on or after July 1, 25 2024, subject to paragraph “d” , the greater of three dollars 26 and ninety-five cents per thousand dollars of assessed value 27 used to calculate taxes for the budget year and the amount 28 determined under paragraph “b” , as adjusted under subparagraph 29 (2), if applicable. 30 (2) If the total assessed value used to calculate taxes 31 for rural county services under this subsection for the budget 32 year exceeds one hundred two and one-half percent of the total 33 assessed value used to calculate taxes for the current fiscal 34 year, the levy rate per thousand dollars determined under 35 -4- LSB 1100XC (14) 90 md/jh 4/ 35

S.F. _____ paragraph “b” , as previously adjusted under this subparagraph, 1 if applicable, shall be reduced to a rate per one thousand 2 dollars of assessed value that is equal to one thousand 3 multiplied by the quotient of the current fiscal year’s actual 4 property tax dollars certified for levy under this subsection 2 5 divided by the total assessed value used to calculate taxes for 6 the budget year. 7 d. In addition to the limitation under paragraph “c” , 8 for fiscal years beginning on or after July 1, 2024, if the 9 county’s actual levy rate imposed under this subsection for 10 the current fiscal year is three dollars and ninety-five 11 cents or less per thousand dollars of assessed value and the 12 total assessed value used to calculate taxes for the budget 13 year exceeds one hundred three and twenty-five hundredths 14 percent of the total assessed value used to calculate taxes 15 for the current fiscal year, the levy rate imposed under this 16 subsection for the budget year shall not exceed the rate 17 necessary to levy taxes under this subsection in an amount 18 equal to one hundred three and twenty-five hundredths percent 19 of the amount levied under this subsection for the current 20 fiscal year. 21 3. For purposes of this section: 22 a. “Budget year” means the same as defined in section 23 331.433A, subsection 1. 24 b. “Current fiscal year” means the same as defined in 25 section 331.433A, subsection 1. 26 Sec. 5. Section 331.424, subsection 1, paragraph a, 27 subparagraph (6), Code 2023, is amended by striking the 28 subparagraph. 29 Sec. 6. Section 331.426, Code 2023, is amended to read as 30 follows: 31 331.426 Additions to basic levies. 32 1. If a county has unusual circumstances a natural disaster , 33 creating a need for additional property taxes for general 34 county services or rural county services in excess of the 35 -5- LSB 1100XC (14) 90 md/jh 5/ 35

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

S.F. _____ published in a conspicuous form as prescribed by the committee. 1 Sec. 7. Section 331.433A, subsection 5, paragraph b, Code 2 2023, is amended to read as follows: 3 b. (1) If the sum of the maximum property tax dollars 4 for the budget year specified in the resolution for either 5 general county services or for rural county services under the 6 levies specified in subsection 2 , paragraphs “a” and “b” , as 7 applicable, exceeds one hundred two percent of the sum of the 8 current fiscal year’s actual property taxes certified for levy 9 for general county services or rural county services under the 10 levies specified in subsection 2 , paragraphs “a” and “b” , as 11 applicable, the board shall be required to adopt the resolution 12 by a two-thirds majority of the membership of the board. 13 (2) (a) For the budget year beginning July 1, 2023, the 14 amount of the current fiscal year’s actual property taxes 15 certified for levy for general county services shall include 16 amounts certified for levy under section 331.424, subsection 1, 17 paragraph “a” , subparagraph (6), Code 2023, and under section 18 331.426, Code 2023. 19 (b) For the budget year beginning July 1, 2023, the amount 20 of the current fiscal year’s actual property taxes certified 21 for levy for rural county services shall include amounts 22 certified for levy under Code section 331.426, Code 2023. 23 Sec. 8. Section 331.441, subsection 2, paragraph b, 24 subparagraph (5), subparagraph divisions (a), (b), (c), (d), 25 and (e), Code 2023, are amended to read as follows: 26 (a) Six Four hundred twenty thousand dollars in a county 27 having a population of twenty-five thousand or less. 28 (b) Seven Five hundred fifty twenty-five thousand dollars 29 in a county having a population of more than twenty-five 30 thousand but not more than fifty thousand. 31 (c) Nine Six hundred thirty thousand dollars in a county 32 having a population of more than fifty thousand but not more 33 than one hundred thousand. 34 (d) One million two Eight hundred forty thousand dollars in 35 -7- LSB 1100XC (14) 90 md/jh 7/ 35

S.F. _____ a county having a population of more than one hundred thousand 1 but not more than two hundred thousand. 2 (e) One million five hundred fifty thousand dollars in a 3 county having a population of more than two hundred thousand. 4 Sec. 9. Section 331.441, subsection 2, paragraph c, 5 subparagraph (11), Code 2023, is amended by striking the 6 subparagraph. 7 Sec. 10. Section 331.442, subsection 5, paragraph a, 8 subparagraphs (1), (2), and (3), Code 2023, are amended to read 9 as follows: 10 (1) In counties having a population of twenty thousand 11 or less, in an amount of not more than one hundred seventy 12 thousand dollars. 13 (2) In counties having a population of over twenty thousand 14 and not over fifty thousand, in an amount of not more than two 15 one hundred forty thousand dollars. 16 (3) In counties having a population of over fifty thousand, 17 in an amount of not more than three two hundred ten thousand 18 dollars. 19 Sec. 11. EFFECTIVE DATE. This division of this Act, being 20 deemed of immediate importance, takes effect upon enactment. 21 Sec. 12. APPLICABILITY. This division of this Act applies 22 to county taxes and budgets for fiscal years beginning on or 23 after July 1, 2023. 24 DIVISION II 25 CITY PROPERTY TAXES AND BUDGETS 26 Sec. 13. Section 24.48, subsection 5, Code 2023, is amended 27 by adding the following new paragraph: 28 NEW PARAGRAPH . c. For budgets for fiscal years beginning on 29 or after July 1, 2023, if the political subdivision is a city, 30 a suspension of the statutory property tax levy limitations 31 under this section shall only be approved by the state appeal 32 board in the event of a natural disaster. 33 Sec. 14. Section 28M.5, subsection 1, Code 2023, is amended 34 to read as follows: 35 -8- LSB 1100XC (14) 90 md/jh 8/ 35

S.F. _____ 1. The commission, with the approval of the board of 1 supervisors of participating counties and the city council 2 of participating cities in the chapter 28E agreement, may 3 levy annually a tax not to exceed ninety-five cents per 4 thousand dollars of the assessed value of all taxable property 5 in a regional transit district to the extent provided in 6 this section . The chapter 28E agreement may authorize the 7 commission to levy the tax at different rates within the 8 participating cities and counties in amounts sufficient to meet 9 the revenue responsibilities of such cities and counties as 10 allocated in the budget adopted by the commission. However, 11 for a city participating in a regional transit district, the 12 total of all the tax levies imposed in the city pursuant 13 to section 384.12, subsection 10 1 , and this section shall 14 not exceed the aggregate of ninety-five cents per thousand 15 dollars of the assessed value of all taxable property in the 16 participating city. 17 Sec. 15. Section 37.8, Code 2023, is amended to read as 18 follows: 19 37.8 Levy for Cost of development, operation, and 20 maintenance. 21 For the development, operation, and maintenance of a 22 building or monument constructed, purchased, or donated under 23 this chapter , a city may levy a tax not to exceed eighty-one 24 cents per thousand dollars of assessed value on all the taxable 25 property within the city, as provided in section 384.12, 26 subsection 2 utilize taxes levied under section 384.1 . 27 Sec. 16. Section 357G.8, Code 2023, is amended to read as 28 follows: 29 357G.8 Election on proposed levy and of candidates for 30 trustees —— funding of operations . 31 1. When a preliminary plat has been approved by the council, 32 an election shall be held within the district within sixty days 33 to approve or disapprove the levy of an initial tax of not 34 more than one dollar per thousand dollars of assessed value 35 -9- LSB 1100XC (14) 90 md/jh 9/ 35

S.F. _____ on all the taxable property within the district and to choose 1 candidates for the offices of trustees of the district. The 2 ballot shall set out the reason for the tax and the amount 3 needed. The tax shall be set to raise only the amount needed. 4 Notice of the election, including the time and place of holding 5 the election, shall be given as provided in section 357G.4 . 6 The vote shall be by ballot which shall state clearly the 7 proposition to be voted upon and any registered voter residing 8 within the district at the time of the election may vote. It 9 is not mandatory for the county commissioner of elections 10 to conduct elections held pursuant to this chapter , but the 11 elections shall be conducted in accordance with chapter 49 12 where not in conflict with this chapter . Judges shall be 13 appointed to serve without pay by the council from among the 14 registered voters of the district to be in charge of the 15 election. The proposition is approved if sixty percent of 16 those voting on the proposition vote in favor of it. 17 2. a. If the tax authorized under subsection 1 is 18 insufficient to provide the services authorized under this 19 chapter , the trustees may levy an additional annual tax, at 20 a rate necessary to provide the authorized services, if such 21 authority for an additional tax is approved at election held 22 separately and after the election held under subsection 1 . 23 The district’s operations shall be funded from general fund 24 property tax revenues certified by the city and levied under 25 section 384.1. 26 b. By resolution, the council may submit to the registered 27 voters of the district the proposition of levying the 28 additional annual tax according to the election procedures 29 under subsection 1 . 30 c. (1) After adoption of the resolution under paragraph 31 “b” , the The board of trustees shall coordinate efforts with 32 the local emergency medical services agencies to establish 33 a district advisory council to assist in researching and 34 assessing the service needs of the district and guiding 35 -10- LSB 1100XC (14) 90 md/jh 10/ 35

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

S.F. _____ unless imposition is subsequently again authorized at election. 1 Following discontinuance of the authority to impose the 2 additional tax, authority to reimpose the additional tax 3 requires approval in accordance with this subsection . 4 Sec. 17. Section 357G.10, Code 2023, is amended to read as 5 follows: 6 357G.10 Trustees’ powers. 7 The trustees may purchase, own, rent, or maintain emergency 8 medical services apparatus or equipment within the state or 9 outside the territorial jurisdiction and boundary limits of 10 this state, provide housing for such apparatus and equipment, 11 provide emergency medical service and facilities, and may 12 request the city certify for levy an amount of taxes as 13 provided in section 357G.8 . The trustees may purchase 14 material, employ emergency medical service and other personnel, 15 and may perform all other acts necessary to properly maintain 16 and operate the district. The trustees may contract with any 17 other city or county or public or private agency under chapter 18 28E for the purpose of providing emergency medical services 19 under this chapter . The trustees are allowed necessary 20 expenses in the discharge of their duties, but they shall not 21 receive a salary. 22 Sec. 18. Section 357G.12, Code 2023, is amended to read as 23 follows: 24 357G.12 Dissolution of district. 25 Upon petition of thirty-five percent of the resident 26 eligible electors, the council may dissolve a district and 27 dispose of any remaining property, the proceeds of which shall 28 first be applied against outstanding obligations and any 29 balance shall be applied to tax credit of property owners of 30 the district. The council shall continue to levy a tax after 31 dissolution of a district, of not to exceed twenty-seven cents 32 per thousand dollars of assessed value on all the taxable 33 property of the district, appropriate taxes levied under 34 section 384.1 until all outstanding obligations of the district 35 -12- LSB 1100XC (14) 90 md/jh 12/ 35

S.F. _____ are paid. 1 Sec. 19. Section 357G.13, Code 2023, is amended to read as 2 follows: 3 357G.13 Adding property to district. 4 Any property in an unincorporated area contiguous to the 5 boundaries of an established district which is annexed by the 6 city shall be included in the district. The tax levy for the 7 next year shall be applied to the property and on the first day 8 of the next fiscal year, the property shall become a part of 9 the district. 10 Sec. 20. Section 357J.18, Code 2023, is amended to read as 11 follows: 12 357J.18 Transition —— emergency medical services district 13 taxes discontinued. 14 When the boundary lines of the emergency response district 15 include all or a portion of an emergency medical services 16 district under chapter 357F or chapter 357G and the emergency 17 response district has certified a tax to be levied on property 18 located within the emergency medical services district for 19 the purpose of emergency medical service, the emergency 20 medical services district trustees shall no longer levy the 21 taxes authorized in section 357F.8 or section 357G.8 utilize 22 tax revenue levied under section 384.1 for emergency medical 23 services district purposes in that portion of such emergency 24 medical services district that is provided services by the 25 emergency response district. Any indebtedness incurred by 26 an emergency medical services district under chapter 357F 27 or chapter 357G for a service now provided by the emergency 28 response district shall be assumed by the emergency response 29 district. 30 Sec. 21. Section 384.1, Code 2023, is amended to read as 31 follows: 32 384.1 Taxes certified. 33 1. A city may certify taxes to be levied by the county 34 on all taxable property within the city limits, for all city 35 -13- LSB 1100XC (14) 90 md/jh 13/ 35

S.F. _____ government purposes. However, the 1 2. a. Notwithstanding subsection 3, the tax levied by 2 a city on tracts of land and improvements thereon used and 3 assessed for agricultural or horticultural purposes, shall 4 not exceed three dollars and three-eighths cents per thousand 5 dollars of assessed value in any year. Improvements located 6 on such tracts of land and not used for agricultural or 7 horticultural purposes and all residential dwellings are 8 subject to the same rate of tax levied by the city on all other 9 taxable property within the city. A 10 3. a. For fiscal years beginning before July 1, 2023, a 11 city’s tax levy for the general fund shall not exceed eight 12 dollars and ten cents per thousand dollars of taxable assessed 13 value used to calculate taxes in any tax year, except for the 14 levies authorized in section 384.12 . 15 b. For the fiscal year beginning July 1, 2023, a city’s 16 tax levy for the general fund, except for levies authorized in 17 section 384.12, shall not exceed the sum of eight dollars and 18 ten cents per thousand dollars of taxable value plus the sum of 19 the following for the city, as applicable: 20 (1) The amount per thousand dollars of taxable value levied 21 by or on behalf of the city under section 384.8, Code 2023, for 22 the fiscal year beginning July 1, 2022. 23 (2) The total amount per thousand dollars of taxable value 24 levied by or on behalf of the city under section 384.12, 25 subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, 18, 26 and 20, Code 2023, for the fiscal year beginning July 1, 2022. 27 (3) The amount per thousand dollars of taxable value levied 28 by the city under section 24.48, Code 2023, for the fiscal year 29 beginning July 1, 2022. 30 c. (1) For each fiscal year beginning on or after July 31 1, 2024, subject to paragraph “d” , a city’s tax levy for the 32 general fund, except for levies authorized in section 384.12, 33 shall not exceed in any tax year the greater of eight dollars 34 and ten cents per thousand dollars of assessed value used to 35 -14- LSB 1100XC (14) 90 md/jh 14/ 35

S.F. _____ calculate taxes for the budget year and the amount determined 1 under paragraph “b” , as adjusted under subparagraph (2), if 2 applicable. 3 (2) If the total assessed value used to calculate taxes 4 for the budget year exceeds one hundred two and one-half 5 percent of the total assessed value used to calculate taxes for 6 the current fiscal year, the levy rate per thousand dollars 7 determined under paragraph “b” , as previously adjusted under 8 this subparagraph, if applicable, shall be reduced to a rate 9 per one thousand dollars of assessed value that is equal to 10 one thousand multiplied by the quotient of the current fiscal 11 year’s actual property tax dollars certified for levy under 12 this section divided by the total assessed value used to 13 calculate taxes for the budget year. 14 d. In addition to the limitation under paragraph “c” , for 15 fiscal years beginning on or after July 1, 2024, if the city’s 16 actual levy rate imposed under this section for the current 17 fiscal year is eight dollars and ten cents or less per thousand 18 dollars of assessed value and the total assessed value used to 19 calculate taxes for the budget year exceeds one hundred three 20 and twenty-five hundredths percent of the total assessed value 21 used to calculate taxes for the current fiscal year, the levy 22 rate imposed under this section for the budget year shall not 23 exceed the rate necessary to levy taxes under this section in 24 an amount equal to one hundred three and twenty-five hundredths 25 percent of the amount levied under this section for the current 26 fiscal year. 27 4. For purposes of this section: 28 a. “Budget year” means the same as defined in section 29 384.15A, subsection 1. 30 b. “Current fiscal year” means the same as defined in 31 section 384.15A, subsection 1. 32 Sec. 22. Section 384.12, Code 2023, is amended to read as 33 follows: 34 384.12 Additional taxes. 35 -15- LSB 1100XC (14) 90 md/jh 15/ 35

S.F. _____ A city may certify, for the general fund levy, taxes which 1 are not subject to the limit provided in section 384.1 , and 2 which are in addition to any other moneys the city may wish to 3 spend for such purposes, as follows: 4 1. A tax not to exceed thirteen and one-half cents 5 per thousand dollars of assessed value for the support of 6 instrumental or vocal musical groups, one or more organizations 7 which have tax-exempt status under section 501(c)(3) of 8 the Internal Revenue Code and are organized and operated 9 exclusively for artistic and cultural purposes, or any of these 10 purposes, subject to the following: 11 a. Upon receipt of a petition valid under the provisions of 12 section 362.4 , the council shall submit to the voters at the 13 next regular city election the question of whether a tax shall 14 be levied. 15 b. If a majority approves the levy, it may be imposed. 16 c. The levy can be eliminated by the same procedure of 17 petition and election. 18 d. A tax authorized by an election held prior to the 19 effective date of the city code may be continued until 20 eliminated by the council, or by petition and election. 21 2. A tax not to exceed eighty-one cents per thousand dollars 22 of assessed value for development, operation, and maintenance 23 of a memorial building or monument, subject to the provisions 24 of subsection 1 . 25 3. A tax not to exceed thirteen and one-half cents per 26 thousand dollars of assessed value for support of a symphony 27 orchestra, subject to the provisions of subsection 1 . 28 4. A tax not to exceed twenty-seven cents per thousand 29 dollars of assessed value for the operation of cultural and 30 scientific facilities, subject to the provisions of subsection 31 1 , except that the question may be submitted on the council’s 32 own motion. 33 5. A tax to aid in the construction of a county bridge, 34 subject to the provisions of subsection 1 , except that the 35 -16- LSB 1100XC (14) 90 md/jh 16/ 35

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

S.F. _____ question must be submitted at a special election. The levy is 1 limited to three and three-eighths cents per thousand dollars 2 of assessed value. In addition to any other conditions the 3 following requirements must be met before moneys received for 4 this purpose may be paid over by the county treasurer: 5 a. The public transportation company shall provide the city 6 with copies of state and federal income tax returns for the 7 five years preceding the year for which payment is contemplated 8 or for such lesser period of time as the company has been in 9 operation. 10 b. The city shall, in any given year, be authorized to pay 11 over only such sums as will yield not to exceed two percent 12 of the public transportation company’s investment as the same 13 is valued in its tax depreciation schedule, provided that 14 corporate profits and losses for the five preceding years or 15 for such lesser period of time as the company has been in 16 operation shall not average in excess of a two percent net 17 return. Taxes levied under this subsection may not be used to 18 subsidize losses incurred prior to the election required by 19 this subsection . 20 10. 1. A tax for the operation and maintenance of a 21 municipal transit system or for operation and maintenance of a 22 regional transit district, and for the creation of a reserve 23 fund for the system or district, in an amount not to exceed 24 ninety-five cents per thousand dollars of assessed value each 25 year, when the revenues from the transit system or district are 26 insufficient for such purposes. 27 11. If a city has entered into a lease of a building or 28 complex of buildings to be operated as a civic center, a tax 29 sufficient to pay the installments of rent and for maintenance, 30 insurance and taxes not included in the lease rental payments. 31 12. A tax not to exceed thirteen and one-half cents per 32 thousand dollars of assessed value each year for operating and 33 maintaining a civic center owned by a city. 34 13. A tax not to exceed six and three-fourths cents per 35 -18- LSB 1100XC (14) 90 md/jh 18/ 35

S.F. _____ thousand dollars of assessed value for planning a sanitary 1 disposal project. 2 14. 2. A tax not to exceed twenty-seven cents per thousand 3 dollars of assessed value each year for an aviation authority 4 as provided in section 330A.15 . 5 15. A tax not to exceed six and three-fourths cents per 6 thousand dollars of assessed value each year for a levee 7 improvement fund in special charter cities as provided in 8 section 420.155 . 9 16. A tax not to exceed twenty and one-half cents per 10 thousand dollars of assessed value each year to maintain an 11 institution received by gift or devise, subject to an election 12 as required under subsection 1 . 13 17. 3. A tax to pay the premium costs on tort liability 14 insurance, property insurance, and any other insurance that 15 may be necessary in the operation of the city, the costs of a 16 self-insurance program, the costs of a local government risk 17 pool and amounts payable under any insurance agreements to 18 provide or procure such insurance, self-insurance program, or 19 local government risk pool. 20 18. A tax to fund an emergency medical services district 21 under chapter 357G . 22 19. 4. A tax that exceeds any tax levy limit within this 23 chapter , provided the question has been submitted at a special 24 levy election and received a simple majority of the votes cast 25 on the proposition to authorize the enumerated levy limit to be 26 exceeded for the proposed budget year. 27 a. The election may be held as specified in this subsection 28 if notice is given by the city council, not later than 29 forty-six days before the first Tuesday in March, to the county 30 commissioner of elections that the election is to be held. 31 b. An election under this subsection shall be held on 32 the first Tuesday in March and be conducted by the county 33 commissioner of elections in accordance with the law. 34 c. The ballot question shall be in substantially the 35 -19- LSB 1100XC (14) 90 md/jh 19/ 35

S.F. _____ following form: 1 WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........ ? 2 (Vote for only one of the following choices.) 3 CHANGE LEVY AMOUNT ... 4 Add to the existing levy amount a tax for the purpose of 5 .......... (state purpose of proposed levy) at a rate of ... 6 (rate) which will provide an additional $ .... (amount). 7 KEEP CURRENT LEVY ... 8 Continue under the current maximum rate of ... , providing 9 $ .... (amount). 10 d. The commissioner of elections conducting the election 11 shall notify the city officials and other county auditors where 12 applicable, of the results within two days of the canvass which 13 shall be held on the second day that is not a holiday following 14 the special levy election, and beginning no earlier than 1:00 15 p.m. on that day. 16 e. Notice of the election shall be published twice in 17 accordance with the provisions of section 362.3 , except that 18 the first such notice shall be given at least two weeks before 19 the election. 20 f. The cost of the election shall be borne by the city. 21 g. The election provisions of this subsection shall 22 supersede other provisions for elections only to the extent 23 necessary to comply with the provisions of this subsection . 24 h. The provisions of this subsection apply to all cities, 25 however organized, including special charter cities which may 26 adopt ordinances where necessary to carry out these provisions. 27 i. The council shall certify the city’s budget with the tax 28 askings not exceeding the amount approved by the special levy 29 election. 30 20. A tax not to exceed twenty-seven cents per thousand 31 dollars of assessed value for support of a public library, 32 subject to petition and referendum requirements of subsection 33 1 , except that if a majority approves the levy, it shall be 34 imposed. 35 -20- LSB 1100XC (14) 90 md/jh 20/ 35

S.F. _____ 21. 5. A tax for the support of a local emergency 1 management commission established pursuant to chapter 29C . 2 Sec. 23. Section 384.15A, subsection 2, Code 2023, is 3 amended to read as follows: 4 2. For budget years beginning on or after July 1, 2020, 5 prior to the period of time for distribution of the budget 6 under section 384.16, subsection 2 , the council shall adopt a 7 resolution establishing the total maximum property tax dollars 8 that may be certified for levy that includes taxes for city 9 government purposes under section 384.1 , for the city’s trust 10 and agency fund under section 384.6, subsection 1 , for the 11 city’s emergency fund for fiscal years beginning before July 12 1, 2023, under section 384.8 , and Code 2023, for fiscal years 13 beginning before July 1, 2023, the levies authorized under 14 section 384.12, subsections 8, 10, 11, 12, 13, 17, and 21 , Code 15 2023, and for fiscal years beginning on or after July 1, 2023, 16 the levies authorized under section 384.12, subsections 1, 17 3, and 5, but excluding additions approved at election under 18 section 384.12, subsection 19 4 . 19 Sec. 24. Section 384.15A, subsection 5, paragraph b, Code 20 2023, is amended to read as follows: 21 b. (1) If the sum of the maximum property tax dollars for 22 the budget year specified in the resolution under the levies 23 specified in subsection 2 exceeds one hundred two percent of 24 the sum of the current fiscal year’s actual property taxes 25 certified for levy under the levies specified in subsection 26 2 , the council shall be required to adopt the resolution by a 27 two-thirds majority of the membership of the council. 28 (2) For the budget year beginning July 1, 2023, the amount 29 of the current fiscal year’s actual property taxes certified 30 for levy shall include amounts certified for levy under section 31 384.12, subsections 8, 10, 11, 12, 13, and 17, Code 2023, under 32 section 24.48, Code 2023, and under section 384.8, Code 2023. 33 Sec. 25. Section 384.22, subsection 1, Code 2023, is amended 34 to read as follows: 35 -21- LSB 1100XC (14) 90 md/jh 21/ 35

S.F. _____ 1. Not later than December 1 of each year, a city shall 1 publish an annual financial report as provided in section 2 362.3 containing a summary for the preceding fiscal year of 3 all collections and receipts, all accounts due the city, and 4 all expenditures, the current public debt of the city, and the 5 legal debt limit of the city for the current fiscal year. The 6 annual financial report shall be prepared on forms and pursuant 7 to instructions prescribed by the auditor of state. Beginning 8 with the annual financial report published by December 1, 2023, 9 each report shall include a list of bonds, notes, or other 10 obligations issued by the city during the preceding fiscal 11 year payable from any source, including the amount of the 12 issuance, the project or purpose of the issuance, whether the 13 issuance was approved at election or eligible to be subject to 14 a petition for an election, and identification of issuances 15 from the fiscal year or prior fiscal years related to the same 16 project or purpose. 17 Sec. 26. Section 384.24, subsection 4, paragraph i, Code 18 2023, is amended by striking the paragraph. 19 Sec. 27. Section 384.24A, subsection 4, paragraph a, 20 subparagraphs (1), (2), and (3), Code 2023, are amended to read 21 as follows: 22 (1) Four Two hundred eighty thousand dollars in a city 23 having a population of five thousand or less. 24 (2) Seven Four hundred ninety thousand dollars in a city 25 having a population of more than five thousand but not more 26 than seventy-five thousand. 27 (3) One million Seven hundred thousand dollars in a city 28 having a population of more than seventy-five thousand. 29 Sec. 28. Section 384.26, subsection 5, paragraph a, 30 subparagraphs (1), (2), and (3), Code 2023, are amended to read 31 as follows: 32 (1) In cities having a population of five thousand or less, 33 in an amount of not more than four two hundred eighty thousand 34 dollars. 35 -22- LSB 1100XC (14) 90 md/jh 22/ 35

S.F. _____ (2) In cities having a population of more than five thousand 1 and not more than seventy-five thousand, in an amount of not 2 more than seven four hundred ninety thousand dollars. 3 (3) In cities having a population in excess of seventy-five 4 thousand, in an amount of not more than one million seven 5 hundred thousand dollars. 6 Sec. 29. Section 384.110, Code 2023, is amended to read as 7 follows: 8 384.110 Insurance, self-insurance, and risk pooling funds. 9 A city may credit funds to a fund or funds for the purposes 10 authorized by section 364.4, subsection 5 ; section 384.12, 11 subsection 17 3 ; or section 384.24, subsection 3 , paragraph “s” . 12 Moneys credited to the fund or funds, and interest earned on 13 such moneys, shall remain in the fund or funds until expended 14 for purposes authorized by section 364.4, subsection 5 ; section 15 384.12, subsection 17 3 ; or section 384.24, subsection 3 , 16 paragraph “s” . 17 Sec. 30. REPEAL. Section 384.8, Code 2023, is repealed. 18 Sec. 31. EFFECTIVE DATE. This division of this Act, being 19 deemed of immediate importance, takes effect upon enactment. 20 Sec. 32. APPLICABILITY. This division of this Act applies 21 to city taxes and budgets for fiscal years beginning on or 22 after July 1, 2023. 23 DIVISION III 24 PUBLIC EDUCATION AND RECREATION TAX LEVY 25 Sec. 33. Section 276.1, Code 2023, is amended to read as 26 follows: 27 276.1 Title. 28 This section , sections 276.2 through 276.5 , and sections 29 276.8 through 276.11 276.10 of this chapter shall be known and 30 may be cited as the “Iowa Community Education Act” . 31 Sec. 34. Section 276.3, unnumbered paragraph 1, Code 2023, 32 is amended to read as follows: 33 As used in sections 276.1 , 276.2 , this section , sections 34 276.4 , 276.5 , and sections 276.8 through 276.11 276.10 , unless 35 -23- LSB 1100XC (14) 90 md/jh 23/ 35

S.F. _____ the context otherwise requires: 1 Sec. 35. Section 276.10, subsection 1, Code 2023, is amended 2 to read as follows: 3 1. The board of directors of a local school district 4 may establish a community education program for schools in 5 the district and provide for the general supervision of the 6 program. Financial support for the program shall may be 7 provided from funds raised pursuant to chapter 300 received by 8 the school district under chapter 423F and from any private 9 funds and any federal funds made available for the purpose of 10 implementing this chapter . The program which recognizes that 11 the schools belong to the people and which shall be centered 12 in the schools may include but shall not be limited to the use 13 of the school facilities day and night, year round including 14 weekends and regular school vacation periods for educational, 15 recreational, cultural, and other community services and 16 programs for all age, ethnic, and socioeconomic groups residing 17 in the community. 18 Sec. 36. Section 278.1, subsection 1, paragraph e, Code 19 2023, is amended to read as follows: 20 e. Direct the transfer of any surplus in the debt service 21 fund, physical plant and equipment levy fund , or other capital 22 project funds , or public education and recreation levy fund to 23 the general fund. 24 Sec. 37. Section 298A.6, Code 2023, is amended to read as 25 follows: 26 298A.6 Public education and recreation levy fund. 27 The public education and recreation levy fund is a special 28 revenue fund. A public education and recreation levy fund 29 must be established in any school corporation which levies 30 levied the tax authorized under section 300.2 , Code 2023, or 31 which receives received revenue from a chapter 28E agreement 32 authorized under section 300.1 , Code 2023 . Moneys available in 33 the fund at the conclusion of the fiscal year beginning July 1, 34 2025, and ending June 30, 2026, shall be expended by the school 35 -24- LSB 1100XC (14) 90 md/jh 24/ 35

S.F. _____ corporation for the purposes authorized under chapter 300, Code 1 2023. 2 Sec. 38. Section 300.2, Code 2023, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 4. a. A levy under this chapter shall not 5 be approved by the voters on or after the effective date of 6 this section of this division of this Act. 7 b. If the levy has not been discontinued under section 8 300.3, the authorization to impose the levy under this chapter 9 shall terminate July 1, 2026. 10 c. Notwithstanding subsection 2, including a proposition 11 approved at an election held before the effective date of 12 this section of this division of this Act, the rate of a levy 13 imposed by a board of directors under this chapter for the 14 fiscal year beginning July 1, 2025, shall not exceed one-half 15 of the levy rate imposed by the board of directors for the 16 fiscal year beginning July 1, 2024. 17 Sec. 39. Section 423F.3, subsection 1, paragraph c, Code 18 2023, is amended by striking the paragraph. 19 Sec. 40. Section 423F.5, subsection 1, Code 2023, is amended 20 to read as follows: 21 1. A school district shall include as part of its financial 22 audit for the budget year beginning July 1, 2007, and for 23 each subsequent budget year the amount received during the 24 year pursuant to chapter 423E or this chapter , as applicable. 25 In addition, the financial audit shall include the amount 26 of bond levies , and physical plant and equipment levy , and 27 public educational and recreational levy reduced as a result 28 of the moneys received under chapter 423E or this chapter , 29 as applicable. The amount of the reductions shall be stated 30 in terms of dollars and cents per one thousand dollars of 31 valuation and in total amount of property tax dollars. Also 32 included shall be an accounting of the amount of moneys 33 received which were spent for infrastructure purposes pursuant 34 to chapter 423E or this chapter , as applicable. 35 -25- LSB 1100XC (14) 90 md/jh 25/ 35

S.F. _____ Sec. 41. REPEAL. Sections 276.11 and 276.12, Code 2023, 1 are repealed. 2 Sec. 42. REPEAL. Chapter 300, Code 2023, is repealed. 3 Sec. 43. EFFECTIVE DATE. Except as otherwise provided in 4 this division of this Act, this division of this Act takes 5 effect July 1, 2026. 6 Sec. 44. EFFECTIVE DATE. The following, being deemed of 7 immediate importance, takes effect upon enactment: 8 The section of this division of this Act enacting section 9 300.2, subsection 4. 10 Sec. 45. APPLICABILITY. Except for the section of this 11 division of this Act enacting section 300.2, subsection 4, this 12 division of this Act applies to fiscal years beginning on or 13 after July 1, 2026. 14 DIVISION IV 15 BRUCELLOSIS AND TUBERCULOSIS ERADICATION FUND —— LEVY 16 Sec. 46. Section 165.18, subsections 2 and 3, Code 2023, are 17 amended by striking the subsections. 18 Sec. 47. Section 331.512, subsection 1, paragraph e, Code 19 2023, is amended by striking the paragraph. 20 Sec. 48. Section 331.559, subsection 2, Code 2023, is 21 amended by striking the subsection. 22 Sec. 49. APPLICABILITY. This division of this Act applies 23 to property taxes due and payable in fiscal years beginning on 24 or after July 1, 2023. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to local government property taxes, 29 financial authority, and budgets. 30 DIVISION I —— COUNTY PROPERTY TAXES AND BUDGETS. Code 31 section 331.301(10) governs a county’s authority to enter into 32 leases and lease-purchase contracts and, in part, subjects 33 leases and lease-purchase agreements for real property to 34 procedures for approval at an election following a petition 35 -26- LSB 1100XC (14) 90 md/jh 26/ 35

S.F. _____ if the principal amount of the contract exceeds specified 1 thresholds categorized by county population. The bill reduces 2 the thresholds for each category by 30 percent. The bill 3 similarly reduces a threshold relating to when a lease or 4 lease-purchase contract is not subject to approval procedures 5 similar to essential county purposes bonds. 6 Code section 331.402(3) governs a county’s authority 7 to enter into loan agreements and, in part, subjects loan 8 agreements for real property to procedures for approval at an 9 election following a petition if the principal amount of the 10 contract exceeds specified thresholds categorized by county 11 population. The bill reduces the thresholds for each category 12 by 30 percent. 13 Code section 331.403 requires each county to prepare and 14 file an annual financial report. The bill requires that 15 beginning with the annual financial report filed by December 1, 16 2023, each such report shall include a list of bonds, notes, 17 or other obligations issued by the county during the preceding 18 fiscal year payable from any source, including the amount of 19 the issuance, the project or purpose of the issuance, whether 20 the issuance was approved at election or eligible to be subject 21 to a petition for an election, and identification of issuances 22 from the fiscal year or prior fiscal years related to the same 23 project or purpose. 24 Code section 331.423 establishes a levy rate limitation 25 for the general county services levy of $3.50 per $1,000 26 of assessed value of taxable property in the county and a 27 limitation for the rural county services levy of $3.95 per 28 $1,000 of assessed value of taxable property in the county. 29 The bill modifies the general county services levy rate 30 limitation for the fiscal year beginning July 1, 2023, to be a 31 levy rate not to exceed the sum of $3.50 plus the levy rate of 32 the county under Code section 331.424, subsection 1, paragraph 33 “a”, subparagraph (6) (maintenance and operation of courts), 34 Code 2023, for the fiscal year beginning July 1, 2022, plus 35 -27- LSB 1100XC (14) 90 md/jh 27/ 35

S.F. _____ the levy rate for general county services under Code section 1 331.426, Code 2023, for the fiscal year beginning July 1, 2022. 2 The bill then provides that for each fiscal year beginning on 3 or after July 1, 2024, the general county services levy rate 4 limitation is the greater of $3.50 per $1,000 of taxable value 5 and the limitation determined for the preceding fiscal year, 6 as adjusted under the bill. If the total assessed value used 7 to calculate taxes for general county services for the budget 8 year exceeds 102.5 percent of the total assessed value used 9 to calculate taxes for the current fiscal year, the levy rate 10 amount per $1,000 for the preceding fiscal year, if applicable, 11 shall be reduced to a rate that is equal to 1,000 multiplied by 12 the quotient of the current fiscal year’s actual property tax 13 dollars certified for levy divided by the total assessed value 14 used to calculate taxes for the budget year. 15 In addition to that levy limitation, for fiscal years 16 beginning on or after July 1, 2024, if the county’s actual levy 17 rate for general county services for the current fiscal year 18 is $3.50 or less per $1,000 of assessed value and the total 19 assessed value used to calculate taxes for the budget year 20 exceeds 103.25 percent of the total assessed value used to 21 calculate taxes for the current fiscal year, the levy rate for 22 general county services for the budget year shall not exceed 23 the rate necessary to levy taxes in an amount equal to 103.25 24 percent of the amount levied for the current fiscal year. 25 The bill similarly modifies the maximum levy rate for rural 26 county services for the fiscal year beginning July 1, 2023, to 27 be a levy rate equal to the sum of $3.95 plus the rate levied 28 for rural county services under section 331.426, Code 2023, for 29 the fiscal year beginning July 1, 2022. For each fiscal year 30 beginning on or after July 1, 2024, the maximum levy rate is 31 the greater of $3.95 and the levy rate for the preceding fiscal 32 year as adjusted under the bill. The bill provides that if the 33 total assessed value used to calculate taxes for rural county 34 services for the budget year exceeds 102.5 percent of the total 35 -28- LSB 1100XC (14) 90 md/jh 28/ 35

S.F. _____ assessed value used to calculate taxes for the current fiscal 1 year, the levy rate, as previously adjusted under the bill, 2 if applicable, shall be reduced to a rate that is equal to 3 1,000 multiplied by the quotient of the current fiscal year’s 4 actual property tax dollars certified for levy for rural county 5 services divided by the total assessed value used to calculate 6 taxes for the budget year. 7 In addition to that levy limitation, for fiscal years 8 beginning on or after July 1, 2024, if the county’s actual 9 levy rate for rural county services for the current fiscal 10 year is $3.95 or less per $1,000 of assessed value and the 11 total assessed value used to calculate taxes for the budget 12 year exceeds 103.25 percent of the total assessed value used 13 to calculate taxes for the current fiscal year, the levy rate 14 for rural county services for the budget year shall not exceed 15 the rate necessary to levy taxes in an amount equal to 103.25 16 percent of the amount levied for the current fiscal year. 17 The bill strikes the authority of a county to impose a 18 supplemental levy under Code section 331.424 for maintenance 19 and operation of the courts and, if the county imposed such a 20 levy in the fiscal year beginning July 1, 2022, increases the 21 county’s general services levy rate authority by such levy rate 22 amount as previously described. 23 Code section 331.426 authorizes a county experiencing 24 unusual circumstances, including increases in population, 25 natural disaster or emergency, problems relating to major 26 new functions required by state law, staffing problems, need 27 for additional moneys to continue certain programs, need for 28 new county programs that provide a substantial benefit to 29 residents, and reduced or unusually low growth rate in the 30 county, to levy additional property taxes for general county 31 services or rural county services. If the county imposed such 32 levies in the fiscal year beginning July 1, 2022, the bill 33 increases the county’s applicable general services levy rate 34 authority by such levy rate amounts as previously described. 35 -29- LSB 1100XC (14) 90 md/jh 29/ 35

S.F. _____ The bill strikes authority to levy such additional taxes for 1 all unusual circumstances except a natural disaster. 2 The bill modifies the provisions of Code section 331.433A 3 relating to the approval procedures for a county budget to 4 account for the modification of levy amount and rate changes 5 in the bill. 6 Code section 331.441(2)(b) defines “essential county 7 purpose” to include public buildings, including the site 8 or grounds of, and the erection, equipment, remodeling, 9 or reconstruction of, and additions or extensions to the 10 buildings, and including the provision and maintenance of 11 juvenile detention or shelter care facilities, when the 12 cost does not exceed specified thresholds based on county 13 population. The bill reduces each of the threshold amounts by 14 30 percent. The bill also strikes “[a]ny other purpose which 15 is necessary for the operation of the county or the health and 16 welfare of its citizens” from the definition of “general county 17 purpose” under Code section 331.441(2)(c). 18 Code section 331.442 governs county procedures for the 19 issuance of general county purpose bonds. In lieu of calling 20 an election, the board of supervisors may institute proceedings 21 for the issuance of bonds for a general county purpose by 22 publishing a notice of the proposal to issue the bonds, 23 including a statement of the amount and purpose of the bonds, 24 and the right to petition for an election if the amount of the 25 bonds is less than specified threshold amounts based on county 26 population. The bill reduces each of the threshold amounts by 27 30 percent. 28 Division I of the bill takes effect upon enactment and 29 applies to county taxes and budgets for fiscal years beginning 30 on or after July 1, 2023. 31 DIVISION II —— CITY PROPERTY TAXES. Code section 384.1 32 establishes the city general fund levy and limits the levy rate 33 on property that is not used and assessed for agricultural or 34 horticultural purposes at $8.10 per $1,000 of taxable value. 35 -30- LSB 1100XC (14) 90 md/jh 30/ 35

S.F. _____ This bill modifies the levy rate limit for the fiscal year 1 beginning July 1, 2023, to not exceed the sum of $8.10 plus the 2 following for the applicable city: (1) the levy rate under 3 Code section 384.8, Code 2023, for the fiscal year beginning 4 July 1, 2022; (2) the total levy rate levied by or on behalf of 5 the city under Code section 384.12, subsections 1, 2, 3, 4, 5, 6 6, 7, 8, 9, 11, 12, 13, 15, 16, 18, and 20, Code 2023, for the 7 fiscal year beginning July 1, 2022; and (3) the levy rate of 8 the city under Code section 24.48, Code 2023, for the fiscal 9 year beginning July 1, 2022. 10 For each fiscal year beginning on or after July 1, 2024, a 11 city’s tax levy rate for the general fund, except for levies 12 authorized in Code section 384.12, shall not exceed in any tax 13 year the greater of $8.10 per $1,000 and the amount determined 14 under the bill for the prior year, as adjusted under the bill. 15 The bill provides that if the total assessed value used to 16 calculate taxes for the budget year exceeds 102.5 percent 17 of the total assessed value used to calculate taxes for the 18 current fiscal year, the levy rate, as previously adjusted 19 under the bill, if applicable, shall be reduced to a rate that 20 is equal to 1,000 multiplied by the quotient of the current 21 fiscal year’s actual property tax dollars certified for levy 22 under Code section 384.1 divided by the total assessed value 23 used to calculate taxes for the budget year. 24 In addition to that levy limitation, for fiscal years 25 beginning on or after July 1, 2024, if the city’s actual 26 levy rate for the general fund for the current fiscal year 27 is $8.10 or less per $1,000 of assessed value and the total 28 assessed value used to calculate taxes for the budget year 29 exceeds 103.25 percent of the total assessed value used to 30 calculate taxes for the current fiscal year, the levy rate for 31 the general fund for the budget year shall not exceed the rate 32 necessary to levy taxes in an amount equal to 103.25 percent of 33 the amount levied for the current fiscal year. 34 Code section 384.12 authorizes a city to levy various 35 -31- LSB 1100XC (14) 90 md/jh 31/ 35

S.F. _____ other additional taxes that under current law are not subject 1 to the $8.10 levy limit. The bill strikes several of the 2 purposes for which a city may levy an additional tax and if 3 the county imposed such levies in the fiscal year beginning 4 July 1, 2022, increases the county’s general services levy rate 5 authority under Code section 384.1 by such levy rate amounts 6 as previously described. 7 Code section 24.48, in part, authorizes a city with a reduced 8 property tax base or unusually low growth rate or experiencing 9 unusual circumstances, including increases in population, 10 natural disaster or emergency, problems relating to major new 11 functions required by state law, staffing problems, need for 12 additional moneys to continue certain programs, and need for 13 new programs that provide a substantial benefit to residents, 14 to appeal to the state appeal board to suspend levy limitations 15 and levy additional property taxes. The bill provides that for 16 budgets for fiscal years beginning on or after July 1, 2023, 17 suspension of the statutory property tax levy limitations for a 18 city shall only be approved for a natural disaster. 19 The bill repeals Code section 384.8, which authorizes a 20 $0.27 city emergency fund levy and makes corresponding changes 21 to other provisions of law relating to the change in funding 22 for emergency medical services districts under Code chapter 23 357G and the modification of city supplemental property tax 24 levies and the city’s general fund levy under Code section 25 384.1. 26 Code section 384.22 requires each city to prepare and 27 publish an annual financial report. The bill requires that 28 beginning with the annual financial report published by 29 December 1, 2023, each such report shall include a list of 30 bonds, notes, or other obligations issued by the city during 31 the preceding fiscal year payable from any source, including 32 the amount of the issuance, the project or purpose of the 33 issuance, whether the issuance was approved at election or 34 eligible to be subject to a petition for an election, and 35 -32- LSB 1100XC (14) 90 md/jh 32/ 35

S.F. _____ identification of issuances from the fiscal year or prior 1 fiscal years related to the same project or purpose. 2 The bill strikes “[a]ny other purpose which is necessary 3 for the operation of the city or the health and welfare of its 4 citizens” from the definition of “general corporate purpose” 5 under Code section 384.24(4). 6 Code section 384.24A(4) governs a city’s authority to enter 7 into loan agreements and, in part, subjects loan agreements 8 for real property to procedures for approval at an election 9 following a petition if the principal amount of the contract 10 exceeds specified thresholds categorized by city population. 11 The bill reduces the contract amount thresholds for each 12 category by 30 percent. 13 Code section 384.26 governs city procedures for the issuance 14 of city general corporate purpose bonds. In lieu of calling an 15 election, the city council may institute proceedings for the 16 issuance of bonds for a general corporate purpose by publishing 17 a notice of the proposal to issue the bonds, including a 18 statement of the amount and purpose of the bonds, and the right 19 to petition for an election if the amount of the bonds is less 20 than specified threshold amounts based on city population. The 21 bill reduces each of the threshold amounts by 30 percent. 22 Division II takes effect upon enactment and applies to city 23 taxes and budgets for fiscal years beginning on or after July 24 1, 2023. 25 DIVISION III —— PUBLIC EDUCATION AND RECREATIONAL TAX LEVY. 26 Code chapter 300 authorizes the imposition of a voter-approved 27 property tax levy for the establishment and maintenance 28 of public recreation places and playgrounds, and necessary 29 accommodations for the recreation places and playgrounds, in 30 the public school buildings and grounds of the district. Code 31 chapter 300 also authorizes each school board to cooperate 32 with public or private agencies having custody and management 33 of public parks or buildings or grounds open to the public 34 for the supervision and instruction necessary to carry on 35 -33- LSB 1100XC (14) 90 md/jh 33/ 35

S.F. _____ public educational and recreational activities in the parks, 1 buildings, and grounds located within the district. Such 2 activities may be supported by imposition of a voter-approved 3 property tax levy not to exceed 13.5 cents per $1,000 of 4 assessed value. The property tax levy under Code chapter 300 5 also provides financial support to community education programs 6 established under Code chapter 276, which provide educational, 7 recreational, cultural, and other community services and 8 programs. 9 The bill repeals Code chapter 300 and makes corresponding 10 amendments to other provisions of law effective July 1, 2026, 11 and applies to fiscal years beginning on or after July 1, 12 2026. The bill provides that financial support for a community 13 education program under Code chapter 276 may be provided from 14 funds received by the school district under Code chapter 423F. 15 By operation of the definition of “school infrastructure” under 16 Code section 423F.3(6)(a)(1), moneys received by a school 17 district from the secure an advanced vision for education fund 18 may continue to be utilized for activities previously provided 19 for under Code chapter 300 and Code chapter 276. 20 The bill prohibits a levy under Code chapter 300 from being 21 approved at election on or after the effective date of the 22 provision in the bill and limits the rate at which previously 23 approved levies can be imposed for the fiscal year beginning 24 July 1, 2025. 25 The bill also provides that moneys available in the public 26 education and recreation levy fund at the conclusion of the 27 fiscal year beginning July 1, 2025, and ending June 30, 2025, 28 shall be expended by the school corporation for the purposes 29 authorized under Code chapter 300, Code 2023. 30 DIVISION IV —— BRUCELLOSIS AND TUBERCULOSIS ERADICATION 31 FUND —— LEVY. Code section 165.18 authorizes the secretary of 32 agriculture to direct the board of supervisors of each county 33 to levy an amount sufficient to pay the expenses estimated to 34 be incurred from the brucellosis and tuberculosis eradication 35 -34- LSB 1100XC (14) 90 md/jh 34/ 35