HF 2764 (LSB 6928HV (1) 91)

HOUSE FILE 2764

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HSB 768)

A BILL FOR

An Act relating to school district budgeting by modifying provisions relating to proposed property tax amounts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 24.2A, subsection 2, paragraph b, subparagraph (3), Code 2026, is amended to read as follows:
   (3)  The combined amount of the proposed property tax dollars to be certified for all of the political subdivision’s levies for the budget year and the proposed combined property tax rate per one thousand dollars for such levies.  If the political subdivision is a school district and the state percent of growth and the categorical state percent of growth for the applicable school budget year have not been established by law prior to March 5, the proposed property tax dollar amount shall not exceed such property tax dollar amounts calculated using percents of growth equal to those applicable to the immediately preceding school budget year.
    Sec. 2.  Section 24.2A, subsection 4, paragraph a, Code 2026, is amended to read as follows:
   a.  Each political subdivision shall set a time and place for a public hearing on the political subdivision’s proposed property tax amount for the budget year and the political subdivision’s information included in the statements under subsection 2. The proposed property tax hearing shall be set on a date on or after March 20 of the budget year immediately preceding the budget year for which the tax is being proposed. At the hearing, the governing body of the political subdivision shall receive oral or written testimony from any resident or property owner of the political subdivision. This public hearing shall be separate from any other meeting of the governing body of the political subdivision, including any other meeting or public hearing relating to the political subdivision’s budget, and other business of the political subdivision that is not related to the proposed property tax amounts and the information in the statements shall not be conducted at the public hearing. After all testimony has been received and considered, the governing body may decrease, but not increase, the proposed property tax amount to be included in the political subdivision’s budget.  However, if the political subdivision is a school district, due to the timing of enrollment determinations and enactment of legislation affecting school district budgets during the budget process, the school district may, subject to other limitations established by law, increase the proposed property tax amount to be included in the school district’s budget.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Cities, counties, and school districts are prohibited from increasing applicable proposed property tax amounts following the hearing under Code section 24.2A as part of the budgeting process. This bill permits a school district, due to the timing of enrollment determinations and the enactment of school aid legislation, to increase the proposed property tax amount to be included in the school district’s budget.
   The bill also provides that if the political subdivision is a school district and the state percent of growth and the categorical state percent of growth for the applicable school budget year have not been established by law prior to March 5, the proposed property tax dollar amount under Code section 24.2A shall not exceed such property tax dollar amounts calculated using percents of growth equal to those applicable to the immediately preceding school budget year.