House File 718 - Reprinted HOUSE FILE 718 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 1) (As Amended and Passed by the House April 19, 2023 ) A BILL FOR An Act relating to local government funding by modifying school 1 district funding provisions, property tax calculation 2 provisions, local government budgeting and bonding 3 procedures, making transfers, and including effective date 4 and applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 HF 718 (3) 90 md/jh/md

H.F. 718 DIVISION I 1 SCHOOL FOUNDATION PROPERTY TAX 2 Section 1. Section 8.57E, subsection 2, Code 2023, is 3 amended by adding the following new paragraph: 4 NEW PARAGRAPH . c. For the fiscal year beginning July 1, 5 2023, and each fiscal year thereafter, there is transferred 6 from the taxpayer relief fund to the general fund of the state 7 the lesser of the balance of the taxpayer relief fund and an 8 amount equal to the quotient of the assessed value of all 9 taxable property in the state subject to the property tax levy 10 under section 257.3 divided by one thousand dollars, to be 11 used for the payment of increased foundation aid under section 12 257.16 resulting from the reduction of the property tax levy 13 rate under section 257.3 in this Act. 14 Sec. 2. Section 257.3, subsection 1, paragraph a, Code 2023, 15 is amended to read as follows: 16 a. Except as provided in subsections 2 and 3 , a school 17 district shall cause to be levied each year, for the school 18 general fund, a foundation property tax equal to five four 19 dollars and forty cents per thousand dollars of assessed 20 valuation on all taxable property in the district. The county 21 auditor shall spread the foundation levy over all taxable 22 property in the district. 23 Sec. 3. Section 257.3, subsection 2, paragraphs a and b, 24 Code 2023, are amended to read as follows: 25 a. Notwithstanding subsection 1 , a reorganized school 26 district shall cause a foundation property tax of four three 27 dollars and forty cents per thousand dollars of assessed 28 valuation to be levied on all taxable property which, in the 29 year preceding a reorganization, was within a school district 30 affected by the reorganization as defined in section 275.1 , 31 or in the year preceding a dissolution was a part of a school 32 district that dissolved if the dissolution proposal has 33 been approved by the director of the department of education 34 pursuant to section 275.55 . 35 -1- HF 718 (3) 90 md/jh/md 1/ 30

H.F. 718 b. In succeeding school years, the foundation property tax 1 levy on that portion shall be increased to the rate of four 2 three dollars and ninety cents per thousand dollars of assessed 3 valuation the first succeeding year, five four dollars and 4 fifteen cents per thousand dollars of assessed valuation the 5 second succeeding year, and five four dollars and forty cents 6 per thousand dollars of assessed valuation the third succeeding 7 year and each year thereafter. 8 Sec. 4. Section 425A.3, subsection 1, Code 2023, is amended 9 to read as follows: 10 1. The family farm tax credit fund shall be apportioned 11 each year in the manner provided in this chapter so as to give 12 a credit against the tax on each eligible tract of agricultural 13 land within the several school districts of the state in which 14 the levy for the general school fund exceeds five dollars and 15 forty cents per thousand dollars of assessed value the levy 16 rate under section 257.3, subsection 1, paragraph “a” . The 17 amount of the credit on each eligible tract of agricultural 18 land shall be the amount the tax levied for the general school 19 fund exceeds the amount of tax which would be levied on each 20 eligible tract of agricultural land were the levy for the 21 general school fund five dollars and forty cents per thousand 22 dollars of assessed value the levy rate under section 257.3, 23 subsection 1, paragraph “a” , for the previous year. However, 24 in the case of a deficiency in the family farm tax credit fund 25 to pay the credits in full, the credit on each eligible tract 26 of agricultural land in the state shall be proportionate and 27 applied as provided in this chapter . 28 Sec. 5. Section 425A.5, Code 2023, is amended to read as 29 follows: 30 425A.5 Computation by county auditor. 31 The family farm tax credit allowed each year shall be 32 computed as follows: On or before April 1, the county auditor 33 shall list by school districts all tracts of agricultural 34 land which are entitled to credit, the taxable value for the 35 -2- HF 718 (3) 90 md/jh/md 2/ 30

H.F. 718 previous year, the budget from each school district for the 1 previous year, and the tax rate determined for the general 2 fund of the school district in the manner prescribed in 3 section 444.3 for the previous year, and if the tax rate is in 4 excess of five dollars and forty cents per thousand dollars of 5 assessed value the levy rate under section 257.3, subsection 6 1, paragraph “a” , the auditor shall multiply the tax levy which 7 is in excess of five dollars and forty cents per thousand 8 dollars of assessed value the levy rate under section 257.3, 9 subsection 1, paragraph “a” , by the total taxable value of the 10 agricultural land entitled to credit in the school district, 11 and on or before April 1, certify the total amount of credit 12 and the total number of acres entitled to the credit to the 13 department of revenue. 14 Sec. 6. Section 426.3, Code 2023, is amended to read as 15 follows: 16 426.3 Where credit given. 17 The agricultural land credit fund shall be apportioned each 18 year in the manner hereinafter provided so as to give a credit 19 against the tax on each tract of agricultural lands within the 20 several school districts of the state in which the levy for 21 the general school fund exceeds five dollars and forty cents 22 per thousand dollars of assessed value the levy rate under 23 section 257.3, subsection 1, paragraph “a” ; the amount of such 24 credit on each tract of such lands shall be the amount the tax 25 levied for the general school fund exceeds the amount of tax 26 which would be levied on said tract of such lands were the 27 levy for the general school fund five dollars and forty cents 28 per thousand dollars of assessed value the levy rate under 29 section 257.3, subsection 1, paragraph “a” , for the previous 30 year, except in the case of a deficiency in the agricultural 31 land credit fund to pay said credits in full, in which case the 32 credit on each eligible tract of such lands in the state shall 33 be proportionate and shall be applied as hereinafter provided. 34 Sec. 7. Section 426.6, subsection 1, Code 2023, is amended 35 -3- HF 718 (3) 90 md/jh/md 3/ 30

H.F. 718 to read as follows: 1 1. The agricultural land tax credit allowed each year 2 shall be computed as follows: On or before April 1, the 3 county auditor shall list by school districts all tracts of 4 agricultural lands which are entitled to credit, together with 5 the taxable value for the previous year, together with the 6 budget from each school district for the previous year, and the 7 tax rate determined for the general fund of the district in 8 the manner prescribed in section 444.3 for the previous year, 9 and if such tax rate is in excess of five dollars and forty 10 cents per thousand dollars of assessed value the levy rate 11 under section 257.3, subsection 1, paragraph “a” , the auditor 12 shall multiply the tax levy which is in excess of five dollars 13 and forty cents per thousand dollars of assessed value the 14 levy rate under section 257.3, subsection 1, paragraph “a” , by 15 the total taxable value of the agricultural lands entitled to 16 credit in the district, and on or before April 1, certify the 17 amount to the department of revenue. 18 Sec. 8. ADJUSTMENT OF CALCULATIONS. For property tax 19 credits under chapters 425A and 426 for property taxes due and 20 payable in the fiscal year beginning July 1, 2023, the tax rate 21 determined for the general fund of the school district in the 22 manner prescribed in section 444.3 for the previous year shall 23 be determined using the applicable property tax levy rate under 24 section 257.3, as amended in this division of this Act. 25 Sec. 9. EFFECTIVE DATE. This division of this Act, being 26 deemed of immediate importance, takes effect upon enactment. 27 Sec. 10. APPLICABILITY. The following apply July 1, 2023, 28 for school budget years beginning on or after that date: 29 1. The section of this division of this Act amending section 30 257.3, subsection 1, paragraph “a”. 31 2. The section of this division of this Act amending section 32 257.3, subsection 2, paragraphs “a” and “b”. 33 DIVISION II 34 PROPERTY TAX LIMITATION 35 -4- HF 718 (3) 90 md/jh/md 4/ 30

H.F. 718 Sec. 11. Section 443.2, subsection 1, Code 2023, is amended 1 to read as follows: 2 1. Before the first day of July in each year, the county 3 auditor shall transcribe the assessments of the townships and 4 cities into a book or record, to be known as the tax list, 5 properly ruled and headed, with separate columns, in which 6 shall be entered the names of the taxpayers, descriptions of 7 lands, number of acres and value, numbers of city lots and 8 value, and each description of tax, with a column for polls and 9 one for payments, and shall complete it by entering the amount 10 due on each installment, separately, and carrying out the total 11 of both installments. The total of all columns of each page of 12 each book or other record shall balance with the tax totals. 13 After computing the amount of tax due and payable on each 14 property, the county auditor shall round the total amount of 15 tax due and payable on the property to the nearest even whole 16 dollar and, if applicable, reduce the amounts due and payable 17 as required under section 444.25 . 18 Sec. 12. Section 444.1, Code 2023, is amended to read as 19 follows: 20 444.1 Basis for amount of tax. 21 In all taxing districts in the state, including townships, 22 school districts, cities , and counties, when by law then 23 existing the people are authorized to determine by vote, or 24 officers are authorized to estimate or determine, a rate of 25 taxation required for any public purpose, such rate shall in 26 all cases be estimated and based upon the adjusted taxable 27 valuation of such taxing district for the preceding calendar 28 year and subject to the limitation of section 444.25 . 29 Sec. 13. Section 444.2, Code 2023, is amended to read as 30 follows: 31 444.2 Amounts certified in dollars. 32 When an authorized tax rate within a taxing district, 33 including townships, school districts, cities , and counties, 34 has been thus determined as provided by law, the officer or 35 -5- HF 718 (3) 90 md/jh/md 5/ 30

H.F. 718 officers charged with the duty of certifying the authorized 1 rate to the county auditor or board of supervisors shall, 2 before certifying the rate, compute upon the adjusted taxable 3 valuation of the taxing district for the preceding fiscal year, 4 the amount of tax the rate will raise, stated in dollars, 5 subject to the limitation of section 444.25, and shall certify 6 the computed amount in dollars and not by rate, to the county 7 auditor and board of supervisors. 8 Sec. 14. Section 444.3, Code 2023, is amended to read as 9 follows: 10 444.3 Computation of rate. 11 When the valuations for the several taxing districts shall 12 have been adjusted by the several boards for the current 13 year, the county auditor shall thereupon apply such a rate, 14 not exceeding the rate authorized by law, as will raise the 15 amount required for such taxing district, and no larger amount , 16 subject to the limitation under section 444.25 . For purposes 17 of computing the rate under this section , the adjusted taxable 18 valuation of the property of a taxing district does not include 19 the valuation of property of a railway corporation or its 20 trustee which corporation has been declared bankrupt or is in 21 bankruptcy proceedings. Nothing in the preceding sentence 22 exempts the property of such railway corporation or its trustee 23 from taxation and the rate computed under this section shall 24 be levied on the taxable property of such railway corporation 25 or its trustee. 26 Sec. 15. Section 444.22, Code 2023, is amended to read as 27 follows: 28 444.22 Annual levy. 29 In each year the director of revenue shall fix the rate in 30 percentage to be levied upon the assessed valuation of the 31 taxable property of the state necessary to raise the amount for 32 general state purposes as shall be designated by the department 33 of management , subject to the limitation under section 444.25 . 34 Sec. 16. NEW SECTION . 444.25 Property tax amount limitation 35 -6- HF 718 (3) 90 md/jh/md 6/ 30

H.F. 718 —— reduction. 1 1. For purposes of this section: 2 a. “Base year” means the assessment year preceding the 3 assessment year used to calculate property taxes due and 4 payable in the applicable fiscal year. 5 b. “Local taxing authority” means a city, county, community 6 college, school district, or other governmental subdivision 7 located in this state and authorized to certify a levy on 8 property located within such authority. 9 c. “New construction” means buildings, structures, or 10 improvements constructed or relocated on or made to the parcel. 11 d. “Parcel” means each separate item shown on the tax list, 12 manufactured or mobile home tax list, schedule of assessment, 13 or schedule of rate or charge. 14 e. “Property taxes” means annual ad valorem taxes imposed 15 on the parcel which are collectable by the county treasurer 16 following application of all applicable exemptions and credits, 17 and shall not include special assessments, amounts levied under 18 chapter 468, or taxes under chapter 435. “Property taxes” also 19 do not include taxes levied as the result of a property tax 20 levy approved at election or that portion of any property tax 21 levy imposed that is for the payment of principal and interest 22 on bonds or other indebtedness the issuance of which was 23 approved at election, including refunding bonds issued for the 24 repayment of bonds that were approved at election. 25 f. “Qualified parcel” means a parcel that is not located 26 in an urban renewal area under chapter 403 or an urban 27 revitalization area under chapter 404, is not wind energy 28 conversion property as defined in section 427B.26, and for 29 which none of the following apply: 30 (1) The parcel changed ownership during the base year. 31 (2) New construction occurred on the parcel during the base 32 year. 33 (3) The parcel’s assessment for the base year was a partial 34 assessment as the result of incomplete new construction or 35 -7- HF 718 (3) 90 md/jh/md 7/ 30

H.F. 718 improvements. 1 (4) The parcel was omitted from assessment or fraudulently 2 withheld from assessment in the base year. 3 (5) The parcel’s property taxes were suspended or abated 4 under sections 427.8, 427.9, and 427.10. 5 (6) The parcel’s classification is different from the base 6 year. 7 2. a. For property taxes due and payable in fiscal years 8 beginning on or after July 1, 2024, if the amount of property 9 taxes otherwise calculated to be due and payable on a qualified 10 parcel of residential property or agricultural property 11 exceeds one hundred three percent of the actual amount of 12 property taxes due and payable on the parcel in the immediately 13 preceding fiscal year, such amount shall be reduced as provided 14 in subsection 3. If, however, improvements or renovations, not 15 amounting to new construction, occurs on the property during 16 the base year, the threshold amount of property taxes shall be 17 one hundred three percent plus the percentage of the parcel’s 18 taxable value attributable to the improvements or renovations. 19 Improvements or renovations do not include normal and necessary 20 repairs to an existing building or improvement, not amounting 21 to structural replacements or modifications. 22 b. For property taxes due and payable in fiscal years 23 beginning on or after July 1, 2024, if the amount of property 24 taxes otherwise calculated to be due and payable on a qualified 25 parcel of commercial property or industrial property exceeds 26 one hundred eight percent of the actual amount of property 27 taxes due and payable on the parcel in the immediately 28 preceding fiscal year, such amount shall be reduced as provided 29 in subsection 3. If, however, improvements or renovations, not 30 amounting to new construction, occurs on the property during 31 the base year, the threshold amount of property taxes shall be 32 one hundred eight percent plus the percentage of the parcel’s 33 taxable value attributable to the improvements or renovations. 34 Improvements or renovations do not include normal and necessary 35 -8- HF 718 (3) 90 md/jh/md 8/ 30

H.F. 718 repairs to an existing building or improvement, not amounting 1 to structural replacements or modifications. 2 c. Property taxes levied by a political subdivision that did 3 not exist for the immediately preceding fiscal year shall not 4 be included in the calculation of the property tax to be due 5 and payable for the fiscal year and shall not be reduced under 6 subsection 3. 7 3. a. If the total amount of property taxes due and 8 payable on the parcel exceeds the applicable threshold for 9 the parcel under subsection 2, the amount of property taxes 10 due and payable to each taxing authority that certified for 11 levy property taxes on the parcel in excess of the applicable 12 threshold percentage of such amount levied by that taxing 13 authority on the parcel in the immediately preceding fiscal 14 year shall be reduced by the amount by which the parcel’s 15 total amount of property taxes due and payable for all taxing 16 authorities exceeds the applicable threshold for the parcel 17 under subsection 2. 18 b. The amount of the reduction shall be proportionately 19 applied among the various levies for property taxes, or 20 portions thereof, of those taxing authorities that certified 21 for levy property taxes on the parcel in excess of the 22 applicable threshold percentage of such amount levied by that 23 taxing authority on the parcel in the immediately preceding 24 fiscal year. 25 c. The reductions shall be made by the county auditor prior 26 to delivery of the tax list prescribed in chapter 443 to ensure 27 accurate statement of taxes under section 445.5. 28 4. The director of the department of revenue shall adopt 29 rules pursuant to chapter 17A to administer and interpret this 30 section. 31 Sec. 17. Section 445.5, subsection 1, paragraphs e, f, g, 32 and h, Code 2023, are amended to read as follows: 33 e. The complete name of all taxing authorities receiving a 34 tax distribution, the amount of the distribution, the amount of 35 -9- HF 718 (3) 90 md/jh/md 9/ 30

H.F. 718 any reduction resulting from section 444.25, and the percentage 1 distribution for each named authority, listed from the highest 2 to the lowest distribution percentage. 3 f. The consolidated levy rate for one thousand dollars 4 of taxable valuation multiplied by the taxable valuation to 5 produce the gross taxes levied before application of credits 6 against levied taxes for the previous and current fiscal years 7 and before any reduction resulting from section 444.25 . 8 g. The itemized credits against levied taxes deducted from 9 the gross taxes levied in order to produce the net taxes owed 10 for the previous and current fiscal years and the amount of any 11 reductions under section 444.25 for previous and current fiscal 12 years . 13 h. The total amount of taxes levied by each taxing authority 14 in the previous fiscal year and the current fiscal year and the 15 difference between the two amounts, expressed as a percentage 16 increase or decrease , and the amount of any reduction to a 17 taxing authority resulting from section 444.25 . 18 Sec. 18. Section 445.57, subsection 1, Code 2023, is amended 19 to read as follows: 20 1. On or before the tenth day of each month, the county 21 treasurer shall apportion all taxes collected during the 22 preceding month, except partial payment amounts collected 23 pursuant to section 445.36A, subsection 1 , partial payments 24 collected and not yet designated by the county treasurer 25 for apportionment pursuant to section 445.36A, subsection 26 2 , partial payments collected pursuant to section 435.24, 27 subsection 6 , paragraph “a” , and partial payments collected and 28 not yet designated by the county treasurer for apportionment 29 pursuant to section 435.24, subsection 6 , paragraph “b” , among 30 the several funds to which they belong according to the amount 31 levied for each fund, as adjusted under section 444.25, if 32 applicable, and shall apportion the interest, fees, and costs 33 on the taxes to the general fund, and shall enter those amounts 34 upon the treasurer’s cash account, and report the amounts to 35 -10- HF 718 (3) 90 md/jh/md 10/ 30

H.F. 718 the county auditor. 1 Sec. 19. IMPLEMENTATION OF ACT. 2 1. Section 25B.2, subsection 3, shall not apply to this 3 division of this Act. 4 2. Section 25B.7 shall not apply to this division of this 5 Act. 6 Sec. 20. APPLICABILITY. This division of this Act applies 7 to property taxes due and payable in fiscal years beginning on 8 or after July 1, 2024. 9 DIVISION III 10 LOCAL GOVERNMENT BUDGETS 11 Sec. 21. Section 24.9, subsection 1, Code 2023, is amended 12 to read as follows: 13 1. a. Each municipality shall file with the secretary or 14 clerk thereof the estimates required to be made in sections 15 24.3 through 24.8 , at least twenty days before the date fixed 16 by law for certifying the same to the levying board and shall 17 forthwith fix a date for a hearing on the estimates, and 18 shall publish such estimates and any annual levies previously 19 authorized as provided in section 76.2 , with a notice of the 20 time when and the place where such hearing shall be held not 21 less than ten nor more than twenty days before the hearing. 22 Provided that in municipalities of less than two hundred 23 population such estimates and the notice of hearing shall 24 be posted in three public places in the district in lieu of 25 publication. For any other municipality such publication 26 shall be in a newspaper published in the municipality, if any, 27 if not, then in a newspaper of general circulation in the 28 municipality. Except for a municipality with property tax 29 revenues for the immediately preceding fiscal year of less 30 than five thousand dollars, the notice shall also include the 31 information required under paragraph “c” , subparagraph (2), 32 subparagraph divisions (a) through (d), which shall be adopted 33 by resolution of the municipality. 34 b. The department of management shall prescribe the form for 35 -11- HF 718 (3) 90 md/jh/md 11/ 30

H.F. 718 public hearing notices for use by municipalities and notices 1 required to be sent under paragraph “c” . 2 c. (1) For purposes of this paragraph: 3 (a) “Budget year” is the fiscal year beginning during the 4 calendar year in which a budget is certified. 5 (b) “Current fiscal year” is the fiscal year ending during 6 the calendar year in which a budget for the budget year is 7 certified. 8 (c) “Effective property tax rate” means the property tax 9 rate per one thousand dollars of assessed value and is equal to 10 one thousand multiplied by the quotient of the current fiscal 11 year’s actual property tax dollars certified for levy divided 12 by the total assessed value used to calculate taxes for the 13 budget year. 14 (2) In addition to the notices published and posted 15 under paragraph “a” , the municipality shall direct the 16 county treasurer to send to each owner or taxpayer within 17 the municipality by regular mail, on or before the date of 18 publication under paragraph “a” , and pursuant to section 19 331.553, subsection 9, an individual notice containing all of 20 the following: 21 (a) The sum of the current fiscal year’s actual property 22 taxes certified for levy by the municipality and the 23 municipality’s current fiscal year’s combined property tax rate 24 for such amount. 25 (b) The effective property tax rate calculated using the sum 26 of the current fiscal year’s actual property taxes certified by 27 the municipality. 28 (c) The sum of the proposed property tax dollars to be 29 certified for levy by the municipality for the budget year and 30 the proposed combined property tax rate for such amount. 31 (d) If the proposed property tax dollars specified under 32 subparagraph division (c) exceeds the current fiscal year’s 33 actual property tax dollars certified for levy specified in 34 subparagraph division (a), a statement of the major reasons for 35 -12- HF 718 (3) 90 md/jh/md 12/ 30

H.F. 718 the increase. 1 (e) The assessed value of the owner’s or taxpayer’s property 2 used to calculate property taxes for the current fiscal year. 3 (f) The assessed value of the owner’s or taxpayer’s property 4 used to calculate property taxes for the budget year. 5 (g) The amount of property taxes due on the owner’s or 6 taxpayer’s property for the current fiscal year for the 7 municipality. 8 (h) The proposed amount of property taxes to be levied 9 against the owner’s or taxpayer’s property for the budget year 10 for the municipality. 11 (3) This paragraph does not apply to municipalities with 12 property tax revenues for the immediately preceding fiscal year 13 of less than five thousand dollars. 14 Sec. 22. Section 24.17, subsection 1, Code 2023, is amended 15 to read as follows: 16 1. The local budgets of the various political subdivisions 17 shall be certified by the chairperson of the certifying 18 board or levying board, as the case may be, in duplicate to 19 the county auditor not later than March April 15 of each 20 year on forms, and pursuant to instructions, prescribed by 21 the department of management. However, if the political 22 subdivision is a county or a city, its budget shall be 23 certified not later than March 31 of each year, and if the 24 political subdivision is a school district, as defined in 25 section 257.2 , its budget shall be certified not later than 26 April 15 of each year. 27 Sec. 23. Section 24.27, subsection 1, Code 2023, is amended 28 to read as follows: 29 1. Not later than March 25, or April 10 for a county or a 30 city, or April 25 if the municipality is a school district , a 31 number of persons in any municipality political subdivision 32 equal to one-fourth of one percent of those voting for the 33 office of governor, at the last general election in the 34 municipality political subdivision , but the number shall not be 35 -13- HF 718 (3) 90 md/jh/md 13/ 30

H.F. 718 less than ten, and the number need not be more than one hundred 1 persons, who are affected by any proposed budget, expenditure 2 or tax levy, or by any item thereof, may appeal from any 3 decision of the certifying board or the levying board by filing 4 with the county auditor of the county in which the municipal 5 corporation political subdivision is located, a written protest 6 setting forth their objections to the budget, expenditure or 7 tax levy, or to one or more items thereof, and the grounds for 8 their objections. If a budget is certified after March 15, 9 or March 31 in the case of a county or a city, or April 15 in 10 the case of a school district , all appeal time limits shall be 11 extended to correspond to allowances for a timely filing. 12 Sec. 24. Section 24.28, Code 2023, is amended to read as 13 follows: 14 24.28 Hearing on protest. 15 The state board, within a reasonable time, shall fix a date 16 for an initial hearing on the protest and may designate a 17 deputy to hold the hearing, which shall be held in the county 18 or in one of the counties in which the municipality political 19 subdivision is located. Notice of the time and place of the 20 hearing shall be given by certified mail to the appropriate 21 officials of the local government and to the first ten property 22 owners whose names appear upon the protest, at least five 23 days before the date fixed for the hearing. At all hearings, 24 the burden shall be upon the objectors with reference to any 25 proposed item in the budget which was included in the budget 26 of the previous year and which the objectors propose should 27 be reduced or excluded; but the burden shall be upon the 28 certifying board or the levying board, as the case may be, 29 to show that any new item in the budget, or any increase in 30 any item in the budget, is necessary, reasonable, and in the 31 interest of the public welfare. 32 Sec. 25. Section 24.48, subsection 4, Code 2023, is amended 33 to read as follows: 34 4. The city finance committee shall have officially 35 -14- HF 718 (3) 90 md/jh/md 14/ 30

H.F. 718 notified any city of its approval, modification or rejection 1 of the city’s appeal of the decision of the director of the 2 department of management regarding a city’s request for a 3 suspension of the statutory property tax levy limitation prior 4 to thirty-five days before March 31 April 15 . 5 Sec. 26. Section 331.422, unnumbered paragraph 1, Code 6 2023, is amended to read as follows: 7 Subject to this section and sections 331.423 through 331.426 8 or as otherwise provided by state law, the board of each county 9 shall certify property taxes annually at its March April 10 session to be levied for county purposes as follows: 11 Sec. 27. Section 331.433A, subsection 4, paragraph b, Code 12 2023, is amended to read as follows: 13 b. Proof of publication shall be filed with and preserved 14 by the auditor. The department of management shall prescribe 15 the form for the public hearing notice for use by counties , the 16 form for individual notices provided under paragraph “c” , and 17 the form for the resolution to be adopted by the board under 18 subsection 5 . 19 Sec. 28. Section 331.433A, subsection 4, Code 2023, is 20 amended by adding the following new paragraph: 21 NEW PARAGRAPH . c. In addition to the notices published 22 and posted under paragraph “a” , the county shall direct the 23 county treasurer to send to each owner or taxpayer by regular 24 mail, on or before the date of publication under paragraph “a” , 25 and pursuant to section 331.553, subsection 9, an individual 26 notice containing the information required under paragraph “a” , 27 subparagraphs (1) through (4), and all of the following: 28 (1) The assessed value of the owner’s or taxpayer’s property 29 used to calculate property taxes for the current fiscal year. 30 (2) The assessed value of the owner’s or taxpayer’s property 31 used to calculate property taxes for the budget year. 32 (3) The amount of property taxes due on the owner’s or 33 taxpayer’s property for the current fiscal year for general 34 county services and rural county services under the levies 35 -15- HF 718 (3) 90 md/jh/md 15/ 30

H.F. 718 specified in subsection 2, paragraphs “a” and “b” . 1 (4) The proposed amount of property taxes to be levied 2 against the owner’s or taxpayer’s property for the budget year 3 for general county services and rural county services under the 4 levies specified in subsection 2, paragraphs “a” and “b” . 5 Sec. 29. Section 331.433A, subsection 5, paragraph a, Code 6 2023, is amended to read as follows: 7 a. At the public hearing, the board shall receive oral 8 or written objections from any resident or property owner 9 of the county. After all objections have been received and 10 considered, the board may decrease, but not increase, the 11 proposed maximum property tax dollar amounts for inclusion in 12 the resolution and shall adopt the resolution and file the 13 resolution with the auditor as required under section 331.434, 14 subsection 3 . In addition to the proposed maximum property tax 15 dollar amounts for general county services and rural county 16 services, the resolution shall also include the effective 17 property tax rate for general county services, the effective 18 property tax rate for rural county services, the estimated 19 property tax rate for the proposed general county services 20 maximum property tax dollar amount, and the estimated property 21 tax rate for the proposed rural county services maximum 22 property tax dollar amount. 23 Sec. 30. Section 331.434, subsection 7, Code 2023, is 24 amended to read as follows: 25 7. Taxes levied by a county whose budget is certified after 26 March 31 April 15 shall be limited to the prior year’s budget 27 amount. However, this penalty may be waived by the director 28 of the department of management if the county demonstrates 29 that the March 31 deadline was missed because of circumstances 30 beyond the control of the county. 31 Sec. 31. Section 331.436, Code 2023, is amended to read as 32 follows: 33 331.436 Protest. 34 Protests to the adopted budget must be made in accordance 35 -16- HF 718 (3) 90 md/jh/md 16/ 30

H.F. 718 with sections 24.27 through 24.32 as if the county were the 1 municipality under those sections except that the protest must 2 be filed no later than April 10 25 and the number of people 3 necessary to file a protest under this section shall not be 4 less than one hundred. 5 Sec. 32. Section 331.553, Code 2023, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 9. Consolidate all required individual 8 notices required under section 24.9, subsection 1, paragraph 9 “c” , subparagraph (2), section 331.433A, subsection 4, 10 paragraph “c” , section 359.49, subsection 4, paragraph “b” , 11 subparagraph (2), and section 384.15A, subsection 4, paragraph 12 “c” , so that all applicable notices appear on a single 13 individual notice for each owner or taxpayer. 14 Sec. 33. Section 358.18, subsection 2, Code 2023, is amended 15 to read as follows: 16 2. All taxes thus levied by the board shall be certified by 17 the clerk on or before March 1 April 15 to the county auditor 18 of each county wherein any of the property included within 19 the territorial limits of the sanitary district is located, 20 and shall be placed upon the tax list for the current fiscal 21 year by the auditor or auditors. The county treasurer, or 22 treasurers, of more than one county, shall collect all taxes so 23 levied in the same manner as other taxes, and when delinquent 24 the taxes shall draw the same interest. All taxes levied and 25 collected shall be paid over by the officer collecting the 26 taxes to the treasurer of the sanitary district. 27 Sec. 34. Section 358C.14, subsection 2, Code 2023, is 28 amended to read as follows: 29 2. All taxes thus levied by the board shall be certified by 30 the clerk on or before March 1 April 15 to the county auditor 31 of each county in which any of the property included within 32 the territorial limits of the district is located, and shall 33 be placed upon the tax list for the current fiscal year by the 34 auditor. The county treasurer of more than one county shall 35 -17- HF 718 (3) 90 md/jh/md 17/ 30

H.F. 718 collect all taxes so levied in the same manner as other taxes, 1 and when delinquent the taxes shall draw the same interest. 2 All taxes levied and collected shall be paid over by the 3 officer collecting the taxes to the treasurer of the district. 4 Sec. 35. Section 359.49, subsection 4, Code 2023, is amended 5 to read as follows: 6 4. a. The board of trustees shall transmit a copy of the 7 proposed budget and a notice of the meeting set as required by 8 subsection 5 to the county auditor for posting. The county 9 auditor shall post the notice and the proposed budget in an 10 area of the courthouse where notices to the public are commonly 11 posted. The notice shall also include the information required 12 under paragraph “b” , subparagraph (2), subparagraph divisions 13 (a) through (d), which shall be adopted by resolution of the 14 board of trustees. 15 b. (1) For purposes of this paragraph: 16 (a) “Budget year” is the fiscal year beginning during the 17 calendar year in which a budget is certified. 18 (b) “Current fiscal year” is the fiscal year ending during 19 the calendar year in which a budget for the budget year is 20 certified. 21 (c) “Effective property tax rate” means the property tax 22 rate per one thousand dollars of assessed value and is equal to 23 one thousand multiplied by the quotient of the current fiscal 24 year’s actual property tax dollars certified for levy divided 25 by the total assessed value used to calculate taxes for the 26 budget year. 27 (2) In addition to the notices published and posted under 28 paragraph “a” , the township shall direct the county treasurer to 29 send to each owner or taxpayer within the township by regular 30 mail, on or before the date of posting under paragraph “a” , and 31 pursuant to section 331.553, subsection 9, an individual notice 32 containing all of the following: 33 (a) The sum of the current fiscal year’s actual property 34 taxes certified for levy by the township and the township’s 35 -18- HF 718 (3) 90 md/jh/md 18/ 30