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Senate File 587 - ReprintedA Bill ForAn Act 1relating to state and local government financing,
2programs, and operations, by modifying provisions relating
3to mental health and disability services funding, school
4district funding, commercial and industrial property tax
5replacement payments, and other specified tax provisions,
6making appropriations, providing penalties, and including
7effective date and applicability provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2MENTAL HEALTH FUNDING
3 Section 1. Section 123.38, subsection 2, paragraph b, Code
42021, is amended to read as follows:
5b. For purposes of this subsection, any portion of license
6or permit fees used for the purposes authorized in section
7331.424, subsection 1, paragraph “a”, subparagraphs (1) and
8(2), and in section 331.424A, shall not be deemed received
9either by the division or by a local authority.
10 Sec. 2. Section 218.99, Code 2021, is amended to read as
11follows:
12218.99 Counties to be notified of patients’ personal
13accounts.
14The administrator in control of a state institution shall
15direct the business manager of each institution under the
16administrator’s jurisdiction which is mentioned in section
17331.424, subsection 1, paragraph “a”, subparagraphs (1) and
18(2), and for which services are paid under section 331.424A
19by the county of residence or a mental health and disability
20services region, to quarterly inform the county of residence
21of any patient or resident who has an amount in excess of two
22hundred dollars on account in the patients’ personal deposit
23fund and the amount on deposit. The administrators shall
24direct the business manager to further notify the county of
25residence at least fifteen days before the release of funds in
26excess of two hundred dollars or upon the death of the patient
27or resident. If the patient or resident has no residency in
28this state or the person’s residency is unknown, notice shall
29be made to the director of human services and the administrator
30in control of the institution involved.
31 Sec. 3. Section 225.24, Code 2021, is amended to read as
32follows:
33225.24 Collection of preliminary expense.
34Unless a committed private patient or those legally
35responsible for the patient’s support offer to settle the
-1-1amount of the claims, the regional administrator for the
2person’s county of residence shall collect, by action if
3necessary, the amount of all claims for per diem and expenses
4that have been approved by the regional administrator for the
5county and paid by the regional administrator as provided under
6section 225.21. Any amount collected shall be credited to the
7county mental health and disabilities disability services fund
8 region combined account created in accordance with section
9331.424A 331.391.
10 Sec. 4. Section 249N.8, subsection 1, Code 2021, is amended
11to read as follows:
121. Biennially, a report of the results of a review, by
13county and region, of mental health services previously funded
14through taxes levied by counties pursuant to section 331.424A,
15Code 2021, or funds administered by a mental health and
16disability services region that are funded during the reporting
17period under the Iowa health and wellness plan.
18 Sec. 5. Section 331.389, subsection 1, paragraph b, Code
192021, is amended to read as follows:
20b. If a county has been exempted prior to July 1, 2014, from
21the requirement to enter into a regional service system, the
22county and the county’s board of supervisors shall fulfill all
23requirements and be eligible as a region under this chapter and
24chapter chapters 222, 225, 225C, 226, 227, 229, and 230 for a
25regional service system, regional service system management
26plan, regional governing board, and regional administrator,
27and any other provisions applicable to a region of counties
28providing local mental health and disability services.
29Additionally, a county exempted under this subsection shall be
30considered a region for purposes of chapter 426B.
31 Sec. 6. Section 331.389, subsection 5, paragraph a,
32subparagraph (2), Code 2021, is amended to read as follows:
33(2) Reduce the amount of the annual state funding provided
34for the regional service system or exempted county, including
35amounts received under section 426B.3 or from the risk pool
-2-1under section 426B.6, not to exceed fifteen percent of the
2amount.
3 Sec. 7. Section 331.391, subsection 1, Code 2021, is amended
4to read as follows:
51. The funding under the control of the governing board
6shall be maintained in a combined account, in separate county
7accounts that are under the control of the governing board, or
8pursuant to other arrangements authorized by law that limit the
9administrative burden of such control while facilitating public
10scrutiny of financial processes. A county exempted under
11section 331.389, subsection 1, shall maintain a county mental
12health and disability services fund for the deposit of funding
13received under section 426B.3 or from the risk pool under
14section 426B.6 and appropriations specifically authorized to be
15made from the county mental health and disability services fund
16shall not be made from any other fund of the county. A county
17mental health and disability services fund established by an
18exempt county, to the extent feasible, shall be considered to
19be the same as a region combined account and shall be subject
20to the same requirements as a region’s combined account.
21 Sec. 8. Section 331.391, subsection 4, paragraphs a, b, and
22c, Code 2021, are amended to read as follows:
23a. If a region is meeting the financial obligations for
24implementation of its regional service system management plan
25for a fiscal year and residual funding is anticipated, the
26regional administrator shall may reserve an adequate amount of
27unobligated and unencumbered funds for cash flow of expenditure
28obligations in the next fiscal year.
29b. Each region shall certify to the department of management
30 human services on or before December 1, 2022 2021, and each
31December 1 thereafter, the amount of the region’s cash flow
32amount in the combined account that is attributable to each
33county within the region based upon each county’s proportionate
34amount of funding and contributions to the region or other
35methodology specified in the regional governance agreement
-3-1or certify the cash flow amount for each separate county
2account that is under the control of the governing board at the
3conclusion of the most recently completed fiscal year.
4c. For fiscal years beginning on or after July 1, 2023,
5the region’s cash flow amount, either reserved in the region’s
6combined account or reserved among all separate county accounts
7under the control of the governing board, shall not exceed
8forty five percent of the gross actual expenditures from the
9combined account or from all separate county accounts under
10control of the governing board for the fiscal year preceding
11the fiscal year in progress.
12 Sec. 9. Section 331.392, subsection 4, paragraph a, Code
132021, is amended to read as follows:
14a. Methods for pooling, management, and expenditure of the
15funding under the control of the regional administrator. If
16the agreement does not provide for pooling of the participating
17county moneys in a single fund, the agreement shall specify how
18the participating county moneys will be subject to the control
19of the regional administrator.
20 Sec. 10. Section 331.393, subsection 10, Code 2021, is
21amended to read as follows:
2210. The director’s approval of a regional plan shall not be
23construed to constitute certification of the respective county
24budgets or of the region’s budget.
25 Sec. 11. Section 331.394, subsection 4, Code 2021, is
26amended to read as follows:
274. If a county of residence is part of a mental health and
28disability services region that has agreed to pool funding and
29liability for services, the The responsibilities of the county
30under law regarding such mental health and disability services
31shall be performed on behalf of the county by the regional
32administrator. The county of residence or the county’s mental
33health and disability services region, as applicable, is
34responsible for paying the public costs of the mental health
35and disability services that are not covered by the medical
-4-1assistance program under chapter 249A and are provided in
2accordance with the region’s approved service management plan
3to persons who are residents of the county or region.
4 Sec. 12. Section 331.424A, subsection 1, paragraph b, Code
52021, is amended by striking the paragraph.
6 Sec. 13. Section 331.424A, subsection 3, Code 2021, is
7amended to read as follows:
83. a. County revenues from taxes and other sources
9designated by a county for mental health and disabilities
10services shall be credited to the county mental health and
11disabilities services fund which shall be created by the
12county. The Until the required transfer of funds under
13paragraph “b”, the board shall make appropriations from the fund
14for payment of services provided under the regional service
15system management plan approved pursuant to section 331.393.
16The For fiscal years beginning before July 1, 2022, the county
17may pay for the services in cooperation with other counties
18by pooling appropriations from the county services fund with
19appropriations from the county services fund of other counties
20through the county’s regional administrator, or through another
21arrangement specified in the regional governance agreement
22entered into by the county under section 331.392.
23b. Notwithstanding section 331.432, subsection 3, upon
24conclusion of the fiscal year beginning July 1, 2021, except
25for an exempt county under section 331.391, subsection 1,
26the county treasurer shall transfer the remaining balance of
27the county’s county services fund created under paragraph
28“a”, including all unobligated and unencumbered funds, to the
29county’s region to which the county belongs in the fiscal year
30beginning July 1, 2022, for deposit in the region’s combined
31account under section 331.391.
32 Sec. 14. Section 331.424A, subsection 4, paragraph a, Code
332021, is amended to read as follows:
34a. An amount of unobligated and unencumbered funds, as
35specified in the regional governance agreement entered into
-5-1by the county under section 331.392, shall, for fiscal years
2beginning before July 1, 2022, be reserved in the county
3services fund to address cash flow obligations in the next
4fiscal year, subject to the limitations of this subsection.
5 Sec. 15. Section 331.424A, subsection 4, paragraphs c and d,
6Code 2021, are amended by striking the paragraphs.
7 Sec. 16. Section 331.424A, subsections 5, 6, and 9, Code
82021, are amended to read as follows:
95. Receipts from the state or federal government for fiscal
10years beginning before July 1, 2022, for the mental health
11and disability services administered or paid for by a county
12shall be credited to the county services fund, including moneys
13distributed to the county from the department of human services
14and moneys allocated under chapter 426B.
156. For each fiscal year beginning before July 1, 2022, the
16county shall certify a levy for payment of services. For each
17such fiscal year, county revenues from taxes imposed by the
18county credited to the county services fund shall not exceed an
19amount equal to the county budgeted amount for the fiscal year.
20A levy certified under this section is not subject to the
21appeal provisions of section 331.426or to any other provision
22in law authorizing a county to exceed, increase, or appeal a
23property tax levy limit.
249. a. For the fiscal year beginning July 1, 2017, and
25each subsequent fiscal year beginning before July 1, 2022, the
26county budgeted amount determined for each county shall be the
27amount necessary to meet the county’s financial obligations for
28the payment of services provided under the regional service
29system management plan approved pursuant to section 331.393,
30not to exceed an amount equal to the product of the regional
31per capita expenditure target amount twenty-one dollars and
32fourteen cents multiplied by the county’s population, and, for
33fiscal years beginning on or after July 1, 2023, reduced by
34the amount of the county’s cash flow reduction amount for the
35fiscal year calculated under subsection 4, if applicable.
-6- 1b. If a county officially joins a different region, the
2county’s budgeted amount for a fiscal year beginning before
3July 1, 2022, shall be the amount necessary to meet the
4county’s financial obligations for payment of services provided
5under the new region’s regional service system management plan
6approved pursuant to section 331.393, not to exceed an amount
7equal to the product of the new region’s regional per capita
8expenditure target amount twenty-one dollars and fourteen cents
9 multiplied by the county’s population, and, for fiscal years
10beginning on or after July 1, 2023, reduced by the amount of
11the county’s cash flow reduction amount for the fiscal year
12calculated under subsection 4, if applicable.
13 Sec. 17. Section 331.424A, Code 2021, is amended by adding
14the following new subsection:
15 NEW SUBSECTION. 10. This section is repealed July 1, 2022.
16 Sec. 18. Section 331.432, subsection 3, Code 2021, is
17amended to read as follows:
183. a. Except as authorized in section 331.477, transfers
19of moneys between the county services fund created pursuant
20to section 331.424A and any other fund are prohibited. This
21subsection paragraph does not apply to appropriations made or
22the value of in-kind care and treatment provided pursuant to
23section 347.7, subsection 1, paragraph “c”, Code 2021, or to
24transfers from a county public hospital fund under section
25347.7. This paragraph is repealed July 1, 2022.
26b. Payments or transfers of moneys from any fund of the
27county to a mental health and disability services region’s
28combined account under section 331.391 are prohibited. This
29paragraph applies to fiscal years beginning on or after July
301, 2022, but does not apply to transfers from a county public
31hospital fund under section 347.7 for the fiscal year beginning
32July 1, 2022, or the fiscal year beginning July 1, 2023.
33 Sec. 19. Section 347.7, subsection 1, paragraph c, Code
342021, is amended by striking the paragraph.
35 Sec. 20. Section 426B.1, subsection 2, Code 2021, is amended
-7-1to read as follows:
22. Moneys shall be distributed from the property tax relief
3fund to counties for the mental health and disability regional
4service system for mental health and disabilities services, in
5accordance with the appropriations made to the fund and other
6statutory requirements.
7 Sec. 21. Section 426B.2, Code 2021, is amended to read as
8follows:
9426B.2 Property tax relief fund payments.
10The director of human services shall draw warrants on the
11property tax relief fund, payable to the county treasurer
12 regional administrator in the amount due to a county mental
13health and disability services region in accordance with
14statutory requirements, and mail the warrants to the county
15auditors regional administrator in July and January of each
16year.
17 Sec. 22. NEW SECTION. 426B.3 Mental health and disability
18services regional supplement fund.
191. A mental health and disability services regional
20supplement fund is created in the office of the treasurer of
21state under the authority of the department of human services.
22The fund shall be separate from the general fund of the state
23and the balance in the fund shall not be considered part of
24the balance of the general fund of the state. Moneys in the
25fund include appropriations made to the fund and other moneys
26deposited into the fund. Moneys in the fund shall be used
27solely for purposes of making regional supplement payments
28under this section.
292. For each fiscal year beginning on or after July 1, 2021,
30there is appropriated from the general fund of the state to the
31mental health and disability services regional supplement fund
32an amount necessary to make all regional supplement payments
33under this section for that fiscal year.
343. For each fiscal year beginning on or after July 1, 2021,
35the moneys available in a fiscal year in the mental health and
-8-1disability services state supplement fund are appropriated to
2the department of human services and shall be distributed to
3each mental health and disability services region, as defined
4in section 426B.6, on a per capita basis calculated under
5subsection 4 using each region’s population, as defined in
6section 426B.6, for that fiscal year.
74. The amount of each region’s regional supplement payment
8shall be determined as follows:
9a. For the fiscal year beginning July 1, 2021, an amount
10equal to the product of fifteen dollars and eighty-six cents
11multiplied by the sum of the region’s population for the fiscal
12year.
13b. For the fiscal year beginning July 1, 2022, an amount
14equal to the product of thirty-eight dollars multiplied by the
15sum of the region’s population for the fiscal year.
16c. For the fiscal year beginning July 1, 2023, an amount
17equal to the product of forty dollars multiplied by the sum of
18the region’s population for the fiscal year.
19d. For the fiscal year beginning July 1, 2024, an amount
20equal to the product of forty-two dollars multiplied by the sum
21of the region’s population for the fiscal year.
22e. (1) For the fiscal year beginning July 1, 2025, and each
23succeeding fiscal year, an amount equal to the product of the
24sum of the region’s population for the fiscal year multiplied
25by the sum of the dollar amount used to calculate the regional
26supplement payments under this subsection for the immediately
27preceding fiscal year plus the regional supplement growth
28factor for the fiscal year.
29(2) For purposes of this paragraph, “regional supplement
30growth factor” for a fiscal year is an amount equal to the
31product of the dollar amount used to calculate the regional
32supplement payments under this subsection for the immediately
33preceding fiscal year multiplied by the percent increase, if
34any, in the amount of sales tax revenue deposited into the
35general fund of the state under section 423.2A, subsection
-9-11, paragraph “a”, less the transfers required under section
2423.2A, subsection 2, between the fiscal year beginning three
3years prior to the applicable fiscal year and the fiscal year
4beginning two years prior to the applicable year, but not to
5exceed one and one-half percent.
65. Regional supplement payments received by a region
7shall be deposited in the region’s combined account under
8section 331.391 and used solely for providing mental health
9and disability services under the regional service system
10management plan.
116. Regional supplement payments from the mental health
12and disability services regional supplement fund shall be
13paid in quarterly installments to the appropriate regional
14administrator in July, October, January, and April of each
15fiscal year.
167. a. For the fiscal year beginning July 1, 2021, each
17mental health and disability services region for which the
18amount certified during the fiscal year under section 331.391,
19subsection 4, paragraph “b”, exceeds forty percent of the actual
20expenditures of the region for the fiscal year preceding the
21fiscal year in progress, the remaining quarterly payments of
22the region’s regional supplement payment shall be reduced by
23an amount equal to the amount by which the region’s amount
24certified under section 331.391, subsection 4, paragraph “b”,
25exceeds forty percent of the actual expenditures of the region
26for the fiscal year preceding the fiscal year in progress,
27but the amount of the reduction shall not exceed the total
28amount of the region’s regional supplement payment for the
29fiscal year. If the region’s remaining quarterly payments are
30insufficient to effectuate the required reductions under this
31paragraph, the region is required to pay to the department of
32human services any amount for which the reduction in quarterly
33payments could not be made. The amount of reductions to
34quarterly payments and amounts paid to the department under
35this paragraph shall be transferred and credited to the risk
-10-1pool under section 426B.6.
2b. For the fiscal year beginning July 1, 2022, each mental
3health and disability services region for which the amount
4certified during the fiscal year under section 331.391,
5subsection 4, paragraph “b”, exceeds twenty percent of the
6actual expenditures of the region for the fiscal year preceding
7the fiscal year in progress, the remaining quarterly payments
8of the region’s regional supplement payment shall be reduced
9by an amount equal to the amount by which the region’s amount
10certified under section 331.391, subsection 4, paragraph “b”,
11exceeds twenty percent of the actual expenditures of the region
12for the fiscal year preceding the fiscal year in progress,
13but the amount of the reduction shall not exceed the total
14amount of the region’s regional supplement payment for the
15fiscal year. If the region’s remaining quarterly payments are
16insufficient to effectuate the required reductions under this
17paragraph, the region is required to pay to the department of
18human services any amount for which the reduction in quarterly
19payments could not be made. The amount of reductions to
20quarterly payments and amounts paid to the department under
21this paragraph shall be transferred and credited to the risk
22pool under section 426B.6.
23c. For the fiscal year beginning July 1, 2023, and each
24succeeding fiscal year, each mental health and disability
25services region for which the amount certified during the
26fiscal year under section 331.391, subsection 4, paragraph “b”,
27exceeds five percent of the actual expenditures of the region
28for the fiscal year preceding the fiscal year in progress,
29the remaining quarterly payments of the region’s regional
30supplement payment shall be reduced by an amount equal to the
31amount by which the region’s amount certified under section
32331.391, subsection 4, paragraph “b”, exceeds five percent
33of the actual expenditures of the region for the fiscal year
34preceding the fiscal year in progress, but the amount of the
35reduction shall not exceed the total amount of the region’s
-11-1regional supplement payment for the fiscal year. If the
2region’s remaining quarterly payments are insufficient to
3effectuate the required reductions under this paragraph, the
4region is required to pay to the department of human services
5any amount for which the reduction in quarterly payments could
6not be made. The amount of reductions to quarterly payments
7and amounts paid to the department under this paragraph shall
8be transferred and credited to the risk pool under section
9426B.6.
10 Sec. 23. Section 426B.4, Code 2021, is amended to read as
11follows:
12426B.4 Rules.
13The mental health and disability services commission shall
14consult with county representatives regional administrators
15 and the director of human services in prescribing forms and
16adopting rules pursuant to chapter 17A to administer this
17chapter.
18 Sec. 24. NEW SECTION. 426B.6 Risk pool.
191. For the purposes of this chapter, unless the context
20otherwise requires:
21a. “Mental health and disability services region” means
22a mental health and disability services region formed in
23accordance with section 331.389.
24b. “Population” means, as of July 1 of the fiscal year
25preceding the fiscal year in which the population figure is
26applied, the county population shown by the latest preceding
27certified federal census or the latest applicable population
28estimate issued by the United States census bureau, whichever
29is most recent.
30c. “Regional administrator” means the regional administrator
31of a mental health and disability services region, as defined
32in section 331.388.
332. A risk pool is created in the property tax relief fund
34under section 426B.1. The pool shall consist of the moneys
35appropriated or credited to the pool by law, including amounts
-12-1credited to the risk pool under section 426B.3, subsection 7.
2For fiscal years beginning on or after July 1, 2021, there is
3appropriated from the general fund of the state to the risk
4pool the following amounts to be used for the purposes of this
5section:
6a. For the fiscal year beginning July 1, 2021, nine million
7nine hundred sixty thousand five hundred ninety dollars.
8b. For the fiscal year beginning July 1, 2022, five million
9one hundred seven thousand three hundred forty dollars.
10c. (1) For each fiscal year beginning on or after July 1,
112025, an amount equal to the risk pool growth factor multiplied
12by the ending balance of the risk pool at the conclusion of
13the fiscal year ending June 30 immediately preceding the
14application deadline under subsection 4 for the fiscal year for
15which the appropriation is made.
16(2) For purposes of this paragraph, the “risk pool growth
17factor” for each fiscal year is the percent increase, if any, in
18the amount of sales tax revenue deposited into the general fund
19of the state under section 423.2A, subsection 1, paragraph “a”,
20less the transfers required under section 423.2A, subsection
212, between the fiscal year beginning three years prior to the
22applicable fiscal year and the fiscal year beginning two years
23prior to the applicable year, minus one and one-half percent,
24and the risk pool growth factor for any fiscal year shall not
25exceed three and one-half percent.
263. A risk pool board is created. The board shall consist
27of two mental health and disability services region governing
28board members, two mental health and disability services region
29fiscal officers or agents, a member of the mental health and
30disability services commission who is not a governing board
31member or chief operating officer of a mental health and
32disability services region, a member of the county finance
33committee created in chapter 333A who is not an elected
34official, a representative of a provider of mental health or
35developmental disabilities services selected from nominees
-13-1submitted by the Iowa association of community providers, a
2representative of a provider of mental health developmental
3disabilities services selected from nominees submitted by
4the Iowa behavioral health association, one member of the
5children’s behavioral health system state board who is not a
6governing board member or chief operating officer of a mental
7health and disability services region, and two chief operating
8officers of mental health and disability services regions,
9all appointed by the governor, and one member appointed by
10the director of human services. All members appointed by
11the governor shall be subject to confirmation by the senate.
12Members shall serve for three-year terms. A vacancy shall
13be filled in the same manner as the original appointment.
14Expenses and other costs of the risk pool board members
15representing counties shall be paid by the the region to which
16the member’s county belongs. Expenses and other costs of risk
17pool board members who do not represent counties shall be paid
18by the department of human services. Staff assistance to the
19board shall be provided by the department of human services.
20Actuarial expenses and other direct administrative costs shall
21be charged to the pool.
224. To receive assistance from the risk pool, a regional
23administrator must apply to the risk pool board on or before
24October 31 preceding the fiscal year for which assistance is
25requested. The purpose of the assistance shall be to provide
26financial support for services provided by the regional
27administrator’s mental health and disability services region.
28The risk pool board shall make its final decisions on or
29before December 15 regarding acceptance or rejection of the
30applications for assistance and the total amount accepted shall
31be considered obligated.
325. In addition to application and assistance requirements
33under subsections 6, 7, and 9, basic eligibility for risk
34pool assistance requires that a mental health and disability
35services region meet all of the following conditions:
-14- 1a. The mental health and disability services region is in
2compliance with the regional service system management plan
3requirements of section 331.393.
4b. (1) In the fiscal year that commenced two years prior
5to the fiscal year of application for assistance, the ending
6balance, under generally accepted accounting principles, of
7the mental health and disability services region’s combined
8services funds was equal to or less than the ending balance
9threshold under subparagraph (2) for the fiscal year for which
10assistance is requested.
11(2) For purposes of this paragraph “b”, “ending balance
12threshold” means the following:
13(a) For applications for assistance for the fiscal
14year beginning July 1, 2021, forty percent of the actual
15expenditures of the mental health and disability services
16region for the fiscal year that commenced two years prior to
17the fiscal year of application for assistance.
18(b) For applications for assistance for the fiscal
19year beginning July 1, 2022, twenty percent of the actual
20expenditures of the mental health and disability services
21region for the fiscal year that commenced two years prior to
22the fiscal year of application for assistance.
23(c) For applications for assistance for fiscal years
24beginning on or after July 1, 2023, five percent of the actual
25expenditures of the mental health and disability services
26region for the fiscal year that commenced two years prior to
27the fiscal year of application for assistance.
286. The board shall review the fiscal year-end financial
29records for all mental health and disability services regions
30that are granted risk pool assistance. If the board determines
31a mental health and disability services region’s actual need
32for risk pool assistance was less than the amount of risk pool
33assistance granted to the mental health and disability services
34region, the mental health and disability services region
35shall refund the difference between the amount of assistance
-15-1granted and the actual need. The mental health and disability
2services region shall submit the refund within thirty days of
3receiving notice from the board. Refunds shall be credited
4to the risk pool. The mental health and disability services
5commission shall adopt rules pursuant to chapter 17A providing
6criteria for the purposes of this subsection and as necessary
7to implement the other provisions of this section.
87. The board shall determine application requirements to
9ensure prudent use of risk pool assistance. The board may
10accept or reject an application for assistance in whole or in
11part. The decision of the board is final.
128. The total amount of risk pool assistance shall be limited
13to the amount available in the risk pool for a fiscal year. Any
14unobligated balance in the risk pool at the close of a fiscal
15year shall remain in the risk pool for distribution in the
16succeeding fiscal year.
179. Risk pool assistance shall only be made available to
18address one or more of the following circumstances:
19a. Continuing support for core services.
20b. Avoiding the need for reduction or elimination of
21critical services when the reduction or elimination places an
22individual’s health or safety at risk.
23c. Avoiding the need for reduction or elimination of core
24crisis services when the reduction or elimination places the
25public’s health or safety at risk.
26d. Avoiding the need for reduction or elimination of
27services or other support that maintain an individual in
28a community setting or that would create a risk that the
29individuals needing services and supports would be placed in
30more restrictive, higher cost settings.
3110. Subject to the amount available and obligated from the
32risk pool for a fiscal year, the department of human services
33shall annually calculate the amount of moneys due to eligible
34mental health and disability services regions in accordance
35with the board’s decisions and that amount is appropriated from
-16-1the risk pool to the department for payment of the moneys due.
2The department shall authorize the issuance of warrants payable
3to the mental health and disability services regions for the
4amounts due and the warrants shall be issued on or before
5January 1.
611. On or before March 1 and September 1 of each fiscal
7year, the department of human services shall provide the risk
8pool board with a report of the financial condition of each
9funding source administered by the board. The report shall
10include but is not limited to an itemization of the funding
11source’s balances, types and amount of revenues credited, and
12payees and payment amounts for the expenditures made from the
13funding source during the reporting period.
1412. If the board has made its decisions but has determined
15that there are otherwise qualifying requests for risk pool
16assistance that are beyond the amount available in the risk
17pool fund for a fiscal year, the board shall compile a list of
18such requests and the supporting information for the requests.
19The list and information shall be submitted to the mental
20health and disability services commission, the children’s
21behavioral health system state board, the department of human
22services, and the general assembly.
23 Sec. 25. ADJUSTMENT TO PROPERTY TAXES CERTIFIED UNDER
24SECTION 331.424A — FY 2021-2022. If this division of this
25Act takes effect after March 31, 2021, for each county for
26which the amount of taxes certified for levy for the purposes
27of section 331.424A for the fiscal year beginning July 1,
282021, exceeds the product of the population of the county as
29determined under section 331.424A, subsection 1, paragraph
30“e”, multiplied by twenty-one dollars and fourteen cents,
31the department of management shall reduce the amount of such
32taxes certified for levy to an amount not to exceed the
33product of the population of the county as determined under
34section 331.424A, subsection 1, paragraph “e”, multiplied by
35twenty-one dollars and fourteen cents and shall revise the rate
-17-1of taxation as necessary to raise the reduced amount. The
2department of management shall report the reduction in the
3certified taxes and the revised rate of taxation to the county
4auditors by June 15, 2021.
5 Sec. 26. IMPLEMENTATION OF RISK POOL UNDER SECTION 426B.6
6— EMERGENCY RULEMAKING.
71. In order to timely implement the provisions of this
8division of this Act establishing the risk pool for mental
9health and disability services regions for the fiscal year
10beginning July 1, 2021, and the fiscal year beginning July
111, 2022, the director of human services shall, subject to
12the membership requirements of section 426B.6, subsection 3,
13appoint temporary members of the risk pool board to review
14and approve risk pool assistance applications and establish
15alternative application deadlines and expedited application
16review and approval timelines.
172. The department of human services may adopt
18administrative rules under section 17A.4, subsection 3, and
19section 17A.5, subsection 2, paragraph “b”, to implement
20provisions of this division of this Act and the rules shall
21become effective immediately upon filing or on a later
22effective date specified in the rules, unless the effective
23date of the rules is delayed or the applicability of the rules
24is suspended by the administrative rules review committee. Any
25rules adopted in accordance with this section shall not take
26effect before the rules are reviewed by the administrative
27rules review committee. The delay authority provided to the
28administrative rules review committee under section 17A.8,
29subsection 9, shall be applicable to a delay imposed under this
30section, notwithstanding a provision in that section making it
31inapplicable to section 17A.5, subsection 2, paragraph “b”.
32Any rules adopted in accordance with the provisions of this
33section shall also be published as a notice of intended action
34as provided in section 17A.4.
35 Sec. 27. EFFECTIVE DATE. This division of this Act, being
-18-1deemed of immediate importance, takes effect upon enactment.
2DIVISION II
3COMMERCIAL AND INDUSTRIAL PROPERTY TAX REPLACEMENT PAYMENTS
4 Sec. 28. Section 2.48, subsection 3, paragraph f,
5subparagraph (6), Code 2021, is amended by striking the
6subparagraph.
7 Sec. 29. Section 331.512, subsection 15, Code 2021, is
8amended by striking the subsection.
9 Sec. 30. Section 331.559, subsection 27, Code 2021, is
10amended by striking the subsection.
11 Sec. 31. Section 441.21A, subsection 1, paragraph a, Code
122021, is amended to read as follows:
13a. For each fiscal year beginning on or after July 1, 2014,
14but before July 1, 2027, there is appropriated from the general
15fund of the state to the department of revenue an amount
16necessary for the payment of all commercial and industrial
17property tax replacement claims under this section for the
18fiscal year. However, for a the fiscal year years beginning
19on or after July 1, 2017, July 1, 2018, July 1, 2019, July 1,
202020, and July 1, 2021, the total amount of moneys appropriated
21from the general fund of the state to the department of revenue
22for the payment of commercial and industrial property tax
23replacement claims in that each fiscal year shall not exceed
24the total amount of money necessary to pay all commercial and
25industrial property tax replacement claims for the fiscal year
26beginning July 1, 2016.
27 Sec. 32. Section 441.21A, subsections 2 and 3, Code 2021,
28are amended to read as follows:
292. a. Beginning with the For each fiscal year beginning
30on or after July 1, 2014, but before July 1, 2022, each county
31treasurer shall be paid by the department of revenue an
32amount equal to the amount of the commercial and industrial
33property tax replacement claims in the county, as calculated
34in subsection 4. If an amount appropriated for a the fiscal
35year beginning on July 1, 2017, July 1, 2018, July 1, 2019,
-19-1July 1, 2020, or July 1, 2021, is insufficient to pay all
2replacement claims for the fiscal year, the director of revenue
3shall prorate the payment of replacement claims to the county
4treasurers and shall notify the county auditors of the pro rata
5percentage on or before September 30.
6b. For each fiscal year beginning on or after July 1, 2022,
7but before July 1, 2027, each county treasurer shall be paid
8by the department of revenue an amount equal to the sum of the
9commercial and industrial property tax replacement claims for
10all taxing authorities, or portion thereof, located in the
11county, as calculated in subsection 4A. The county treasurer
12shall pay to each taxing authority the taxing authority’s
13commercial and industrial property tax replacement claim, or
14portion thereof, as calculated in subsection 4A.
153. a. On or before July 1 of each fiscal year beginning on
16or after July 1, 2014, but before July 1, 2022, the assessor
17shall report to the county auditor the total actual value of
18all commercial property and industrial property in the county
19that is subject to assessment and taxation for the assessment
20year used to calculate the taxes due and payable in that fiscal
21year.
22b. On or before July 1, 2022, the department of management
23shall calculate and report to the department of revenue for
24each taxing authority in this state that is a city or a county
25all of the following:
26(1) The total assessed value as of January 1, 2012, of
27all taxable property located in the taxing authority that is
28subject to assessment and taxation used to calculate taxes
29which are due and payable in the fiscal year beginning July 1,
302013, excluding property subject to the statewide property tax
31imposed under section 437A.18 or 437B.14.
32(2) The total assessed value as of January 1, 2019, of
33all taxable property located in the taxing authority that is
34subject to assessment and taxation used to calculate taxes
35which are due and payable in the fiscal year beginning July 1,
-20-12020, excluding property subject to the statewide property tax
2imposed under section 437A.18 or 437B.14.
3 Sec. 33. Section 441.21A, subsection 4, unnumbered
4paragraph 1, Code 2021, is amended to read as follows:
5On or before a date established by rule of the department
6of revenue of each fiscal year beginning on or after July
71, 2014, but before July 1, 2022, the county auditor shall
8prepare a statement, based upon the report received pursuant to
9subsection 3, paragraph “a”, listing for each taxing district
10in the county:
11 Sec. 34. Section 441.21A, Code 2021, is amended by adding
12the following new subsection:
13 NEW SUBSECTION. 4A. a. As used in this subsection, unless
14the context clearly requires otherwise:
15(1) “Qualified taxing authority” means any of the following:
16(a) A taxing authority that is not a city or a county.
17(b) A taxing authority that is a city or county for which
18the amount determined under subsection 3, paragraph “b”,
19subparagraph (2), is less than one hundred thirty-one and
20twenty-four hundredths percent of the amount determined under
21subsection 3, paragraph “b”, subparagraph (1).
22(2) “Taxing authority” means a city, county, community
23college, or other governmental entity or political subdivision
24in this state authorized to certify a levy on property located
25within such authority, but does not include a school district.
26b. For fiscal years beginning on or after July 1, 2022,
27but before July 1, 2027, the amount of each taxing authority’s
28replacement claim is as follows:
29(1) If the taxing authority is a qualified taxing authority:
30(a) For the fiscal year beginning July 1, 2022, five-sixths
31of the amount received by the taxing authority under this
32section for the fiscal year beginning July 1, 2021.
33(b) For the fiscal year beginning July 1, 2023, four-sixths
34of the amount received by the taxing authority under this
35section for the fiscal year beginning July 1, 2021.
-21- 1(c) For the fiscal year beginning July 1, 2024, three-sixths
2of the amount received by the taxing authority under this
3section for the fiscal year beginning July 1, 2021.
4(d) For the fiscal year beginning July 1, 2025, two-sixths
5of the amount received by the taxing authority under this
6section for the fiscal year beginning July 1, 2021.
7(e) For the fiscal year beginning July 1, 2026, one-sixth of
8the amount received by the taxing authority under this section
9for the fiscal year beginning July 1, 2021.
10(2) If the taxing authority is not a qualified taxing
11authority:
12(a) For the fiscal year beginning July 1, 2022,
13three-fourths of the amount received by the taxing authority
14under this section for the fiscal year beginning July 1, 2021.
15(b) For the fiscal year beginning July 1, 2023, two-fourths
16of the amount received by the taxing authority under this
17section for the fiscal year beginning July 1, 2021.
18(c) For the fiscal year beginning July 1, 2024, one-fourth
19of the amount received by the taxing authority under this
20section for the fiscal year beginning July 1, 2021.
21(d) For the fiscal year beginning July 1, 2025, and each
22succeeding fiscal year beginning before July 1, 2027, zero.
23(3) The department of management shall calculate and report
24to the department of revenue the amount received by each
25taxing authority in this state as the result of commercial and
26industrial property tax replacement claims paid for the fiscal
27year beginning July 1, 2021, and the portion of the amount
28attributable to each county where the taxing authority is
29located, if applicable.
30 Sec. 35. Section 441.21A, subsection 5, Code 2021, is
31amended to read as follows:
325. For purposes of computing replacement amounts under
33this section for fiscal years beginning on or after July 1,
342014, but before July 1, 2022, that portion of an urban renewal
35area defined as the sum of the assessed valuations defined in
-22-1section 403.19, subsections 1 and 2, shall be considered a
2taxing district.
3 Sec. 36. Section 441.21A, subsection 6, paragraph a, Code
42021, is amended to read as follows:
5a. The For fiscal years beginning on or after July 1, 2014,
6but before July 1, 2022, the county auditor shall certify
7and forward one copy of the statement to the department of
8revenue not later than a date of each year established by the
9department of revenue by rule.
10 Sec. 37. Section 441.21A, subsection 6, Code 2021, is
11amended by adding the following new paragraph:
12 NEW PARAGRAPH. f. This subsection shall apply to the
13apportionment of replacement claim amounts for fiscal years
14beginning on or after July 1, 2014, but before July 1, 2022.
15 Sec. 38. Section 441.21A, Code 2021, is amended by adding
16the following new subsections:
17 NEW SUBSECTION. 7. a. For fiscal years beginning on
18or after July 1, 2022, but before July 1, 2027, each taxing
19authority’s replacement claim calculated under subsection 4A,
20or portion thereof, shall be paid to the appropriate county
21treasurer, as provided in subsection 2, paragraph “b”, in equal
22installments in September and March of each year.
23b. After payment by the county treasurer to the taxing
24authority, the taxing authority’s replacement claim shall be
25apportioned and credited by the governing body of the taxing
26authority among the taxing authority’s tax levies in the same
27proportion that each property tax levy bears to the total of
28all property tax levies imposed by the taxing authority for the
29fiscal year for which the payment is received.
30c. Of the amounts allocated and credited to each property
31tax levy that is subject to division under section 403.19,
32the total amount paid into the fund for the taxing authority
33as taxes by or for the taxing authority into which all other
34property taxes are paid and the special fund of the applicable
35municipality under section 403.19, subsection 2, shall be an
-23-1amount of the replacement claim that is proportionate to the
2amount of the total sum of the assessed value of the taxable
3commercial and industrial property in the urban renewal area as
4a share of total assessed value of all taxable property in the
5taxing authority and shall be apportioned as follows:
6(1) To the fund for the taxing authority as taxes by or for
7the taxing authority into which all other property taxes are
8paid, an amount proportionate to the amount of actual value of
9the commercial and industrial property in the urban renewal
10area as determined in section 403.19, subsection 1, that was
11subtracted pursuant to section 403.20, as it bears to the
12total amount of actual value of the commercial and industrial
13property in the urban renewal area that was subtracted pursuant
14to section 403.20 for the assessment year for property taxes
15due and payable in the fiscal year for which the replacement
16claim is computed.
17(2) (a) To the special fund of the applicable municipality
18under section 403.19, subsection 2, the remaining amount, if
19any.
20(b) The amount allocated under subparagraph division (a)
21shall not exceed the amount equal to the amount certified to
22the county auditor under section 403.19 for the fiscal year in
23which the claim is paid, after deduction of the amount of other
24revenues committed for payment on that amount for the fiscal
25year. The amount not allocated as a result of the operation of
26this subparagraph division (b) shall be allocated to and paid
27into the fund for the taxing authority as taxes by or for the
28taxing authority in the manner provided in subparagraph (1).
29 NEW SUBSECTION. 8. This section is repealed July 1, 2027.
30 Sec. 39. EFFECTIVE DATE. The following take effect July 1,
312027:
321. The section of this division of this Act amending section
33331.512.
342. The section of this division of this Act amending section
35331.559.
-24-1DIVISION III
2SCHOOL FOUNDATION PERCENTAGE
3 Sec. 40. Section 257.1, subsection 2, paragraph b, Code
42021, is amended to read as follows:
5b. For the budget year commencing July 1, 1999, and for
6each succeeding budget year beginning before July 1, 2022,
7 the regular program foundation base per pupil is eighty-seven
8and five-tenths percent of the regular program state cost per
9pupil. For the budget year commencing July 1, 2022, and for
10each succeeding budget year, the regular program foundation
11base per pupil is eighty-eight and four-tenths percent of the
12regular program state cost per pupil. For the budget year
13commencing July 1, 1991, and for each succeeding budget year
14the special education support services foundation base is
15seventy-nine percent of the special education support services
16state cost per pupil. The combined foundation base is the sum
17of the regular program foundation base, the special education
18support services foundation base, the total teacher salary
19supplement district cost, the total professional development
20supplement district cost, the total early intervention
21supplement district cost, the total teacher leadership
22supplement district cost, the total area education agency
23teacher salary supplement district cost, and the total area
24education agency professional development supplement district
25cost.
26 Sec. 41. Section 257.3, subsection 1, paragraph d, Code
272021, is amended by striking the paragraph.
28 Sec. 42. EFFECTIVE DATE. The section of this division of
29this Act amending section 257.3, subsection 1, paragraph “d”,
30takes effect July 1, 2022.
31DIVISION IV
32PUBLIC EDUCATION AND RECREATION TAX LEVY
33 Sec. 43. Section 276.10, subsection 1, Code 2021, is amended
34to read as follows:
351. The board of directors of a local school district
-25-1may establish a community education program for schools in
2the district and provide for the general supervision of the
3program. Financial support for the program shall may be
4provided from funds raised pursuant to chapter 300 received by
5the school district under chapter 423F and from any private
6funds and any federal funds made available for the purpose of
7implementing this chapter. The program which recognizes that
8the schools belong to the people and which shall be centered
9in the schools may include but shall not be limited to the use
10of the school facilities day and night, year round including
11weekends and regular school vacation periods for educational,
12recreational, cultural, and other community services and
13programs for all age, ethnic, and socioeconomic groups residing
14in the community.
15 Sec. 44. Section 278.1, subsection 1, paragraph e, Code
162021, is amended to read as follows:
17e. Direct the transfer of any surplus in the debt service
18fund, physical plant and equipment levy fund, or other capital
19project funds, or public education and recreation levy fund to
20the general fund.
21 Sec. 45. Section 298A.6, Code 2021, is amended to read as
22follows:
23298A.6 Public education and recreation levy fund.
24The public education and recreation levy fund is a special
25revenue fund. A public education and recreation levy fund
26must be established in any school corporation which levies
27 levied the tax authorized under section 300.2, Code 2021, or
28which receives received revenue from a chapter 28E agreement
29authorized under section 300.1, Code 2021. Moneys available in
30the fund at the conclusion of the fiscal year beginning July 1,
312023, and ending June 30, 2024, shall be expended by the school
32corporation for the purposes authorized under chapter 300, Code
332021.
34 Sec. 46. Section 300.2, Code 2021, is amended by adding the
35following new subsection:
-26-1 NEW SUBSECTION. 4. a. A levy under this chapter shall not
2be approved by the voters on or after the effective date of
3this division of this Act.
4b. If the levy has not been discontinued under section
5300.3, the authorization to impose the levy under this chapter
6shall terminate July 1, 2024.
7c. Notwithstanding subsection 2, including a proposition
8approved at an election held before the effective date of this
9division of this Act, the rate of a levy imposed by a board of
10directors under this chapter for the fiscal year beginning July
111, 2023, shall not exceed one-half of the levy rate imposed by
12the board of directors for the fiscal year beginning July 1,
132022.
14 Sec. 47. Section 423F.3, subsection 1, paragraph c, Code
152021, is amended by striking the paragraph.
16 Sec. 48. Section 423F.5, subsection 1, Code 2021, is amended
17to read as follows:
181. A school district shall include as part of its financial
19audit for the budget year beginning July 1, 2007, and for
20each subsequent budget year the amount received during the
21year pursuant to chapter 423E or this chapter, as applicable.
22In addition, the financial audit shall include the amount
23of bond levies, and physical plant and equipment levy, and
24public educational and recreational levy reduced as a result
25of the moneys received under chapter 423E or this chapter,
26as applicable. The amount of the reductions shall be stated
27in terms of dollars and cents per one thousand dollars of
28valuation and in total amount of property tax dollars. Also
29included shall be an accounting of the amount of moneys
30received which were spent for infrastructure purposes pursuant
31to chapter 423E or this chapter, as applicable.
32 Sec. 49. REPEAL. Sections 276.11 and 276.12, Code 2021,
33are repealed.
34 Sec. 50. REPEAL. Chapter 300, Code 2021, is repealed.
35 Sec. 51. EFFECTIVE DATE. Except as otherwise provided in
-27-1this division of this Act, this division of this Act takes
2effect July 1, 2024.
3 Sec. 52. EFFECTIVE DATE. The following, being deemed of
4immediate importance, takes effect upon enactment:
5The section of this division of this Act enacting section
6300.2, subsection 4.
7 Sec. 53. APPLICABILITY. Except for the section of this
8division of this Act enacting section 300.2, subsection 4, this
9division of this Act applies to fiscal years beginning on or
10after July 1, 2024.
11DIVISION V
12ELDERLY PROPERTY TAX CREDIT
13 Sec. 54. Section 25B.7, subsection 2, paragraph b, Code
142021, is amended to read as follows:
15b. Low-income property tax credit and elderly and disabled
16property tax credit pursuant to sections 425.16 through 425.40,
17subject to the limitation of 41, paragraph “b”.
18 Sec. 55. Section 425.17, subsection 2, Code 2021, is amended
19to read as follows:
202. a. “Claimant” means either any of the following:
21(1) A person filing a claim for credit or reimbursement
22 under this subchapter who has attained the age of sixty-five
23years but who has not attained the age of seventy years on
24or before December 31 of the base year or, a person filing a
25claim for credit or reimbursement under this subchapter who
26is totally disabled and was totally disabled on or before
27December 31 of the base year, or a person filing a claim for
28reimbursement under this subchapter who has attained the age of
29sixty-five years on or before December 31 of the base year and
30who is domiciled in this state at the time the claim is filed or
31at the time of the person’s death in the case of a claim filed
32by the executor or administrator of the claimant’s estate.
33(2) A person filing a claim for credit or reimbursement
34under this subchapter who has attained the age of twenty-three
35years on or before December 31 of the base year or was a head
-28-1of household on December 31 of the base year, as defined in
2the Internal Revenue Code, but has not attained the age or
3disability status described in this paragraph “a”, subparagraph
4(1) or the age status and eligibility criteria of subparagraph
5(3), and is domiciled in this state at the time the claim is
6filed or at the time of the person’s death in the case of a
7claim filed by the executor or administrator of the claimant’s
8estate, and was not claimed as a dependent on any other
9person’s tax return for the base year.
10(3) A person filing a claim for credit under this subchapter
11who has attained the age of seventy years on or before December
1231 of the base year, who has a household income of less than
13two hundred fifty percent of the federal poverty level, as
14defined by the most recently revised poverty income guidelines
15published by the United States department of health and human
16services, and is domiciled in this state at the time the claim
17is filed or at the time of the person’s death in the case of a
18claim filed by the executor or administrator of the claimant’s
19estate.
20b. “Claimant” under paragraph “a”, subparagraph (1) or(2),
21 includes a vendee in possession under a contract for deed and
22may include one or more joint tenants or tenants in common.
23In the case of a claim for rent constituting property taxes
24paid, the claimant shall have rented the property during any
25part of the base year. In the case of a claim for property
26taxes due, the claimant shall have occupied the property during
27any part of the fiscal year beginning July 1 of the base year.
28If a homestead is occupied by two or more persons, and more
29than one person is able to qualify as a claimant, the persons
30may each file a claim based upon each person’s income and rent
31constituting property taxes paid or property taxes due.
32 Sec. 56. Section 425.23, subsection 1, paragraph a,
33unnumbered paragraph 1, Code 2021, is amended to read as
34follows:
35The tentative credit or reimbursement for a claimant
-29-1described in section 425.17, subsection 2, paragraph “a”,
2subparagraphs subparagraph (1) and (2), if no appropriation is
3made to the fund created in section 425.40 shall be determined
4in accordance with the following schedule:
5 Sec. 57. Section 425.23, subsection 1, Code 2021, is amended
6by adding the following new paragraph:
7 NEW PARAGRAPH. c. The tentative credit for a claimant
8described in section 425.17, subsection 2, paragraph “a”,
9subparagraph (3), shall be the greater of the following:
10(1) The amount of the credit under the schedule specified
11in paragraph “a” of this subsection as if the claimant was a
12claimant as defined in section 425.17, subsection 2, paragraph
13“a”, subparagraph (1), filing for a credit under paragraph “a”
14of this subsection.
15(2) The difference between the actual amount of property
16taxes due on the homestead during the fiscal year next
17following the base year minus the actual amount of property
18taxes due on the homestead during the first fiscal year for
19which the claimant filed a claim for a credit calculated under
20this paragraph “c” and for which the property taxes due on the
21homestead were calculated on an assessed valuation that was
22not a partial assessment and if the claimant has filed for the
23credit calculated under this paragraph “c” for each of the
24subsequent fiscal years after the first credit claimed.
25 Sec. 58. Section 425.23, subsection 4, paragraph a, Code
262021, is amended to read as follows:
27a. For the base year beginning in the 1999 calendar year
28and for each subsequent base year, the dollar amounts set
29forth in subsections subsection 1, paragraphs “a” and “b”, and
30subsection 3 shall be multiplied by the cumulative adjustment
31factor for that base year. “Cumulative adjustment factor” means
32the product of the annual adjustment factor for the 1998 base
33year and all annual adjustment factors for subsequent base
34years. The cumulative adjustment factor applies to the base
35year beginning in the calendar year for which the latest annual
-30-1adjustment factor has been determined.
2 Sec. 59. Section 425.24, Code 2021, is amended to read as
3follows:
4425.24 Maximum property tax for purpose of credit or
5reimbursement.
6In For claimants under section 425.17, subsection 2,
7paragraph “a”, subparagraphs (1) and (2), and for the
8calculation under section 425.23, subsection 1, paragraph “c”,
9subparagraph (1), in any case in which property taxes due or
10rent constituting property taxes paid for any household exceeds
11one thousand dollars, the amount of property taxes due or rent
12constituting property taxes paid shall be deemed to have been
13one thousand dollars for purposes of this subchapter.
14 Sec. 60. Section 425.39, subsection 1, as amended by 2021
15Iowa Acts, House File 368, section 33, is amended to read as
16follows:
171. a. The elderly and disabled property tax credit fund is
18created. There is appropriated annually from the general fund
19of the state to the department of revenue to be credited to the
20elderly and disabled property tax credit fund, from funds not
21otherwise appropriated, an amount sufficient to implement this
22subchapter for credits for property taxes due for claimants
23described in section 425.17, subsection 2, paragraph “a”,
24subparagraph subparagraphs (1) and (3), subject to paragraph
25“b”.
26b. Regardless of the amount of the credit determined under
27section 425.23, subsection 1, paragraph “c”, the amount paid by
28the director of revenue to each county treasurer for credits
29for claimants described under section 425.17, subsection 2,
30paragraph “a”, subparagraph (3), shall not exceed the amount
31calculated for the claimant under section 425.23, subsection 1,
32paragraph “c”, subparagraph (1), and section 25B.7, subsection
331, shall not apply to the amount of the credit in excess of the
34amount paid by the director of revenue.
35 Sec. 61. APPLICABILITY. This division of this Act applies
-31-1to claims under chapter 425, subchapter II, filed on or after
2January 1, 2022.
3DIVISION VI
4FUTURE TAX CHANGES
5 Sec. 62. 2018 Iowa Acts, chapter 1161, section 133, is
6amended by striking the section and inserting in lieu thereof
7the following:
8SEC. 133. EFFECTIVE DATE. This division of this Act takes
9effect January 1, 2023.
10DIVISION VII
11charitable conservation contribution tax credit
12 Sec. 63. Section 2.48, subsection 3, paragraph e,
13subparagraph (6), Code 2021, is amended by striking the
14subparagraph.
15 Sec. 64. Section 422.33, subsection 25, Code 2021, is
16amended by striking the subsection.
17 Sec. 65. REPEAL. Section 422.11W, Code 2021, is repealed.
18 Sec. 66. APPLICABILITY. This division of this Act applies
19to conveyances made on or after July 1, 2021.
20DIVISION VIII
21forest reservations
22 Sec. 67. Section 427C.1, Code 2021, is amended to read as
23follows:
24427C.1 Tax exemption.
251. Any person who establishes a forest or The owner of a
26 fruit-tree reservation as provided in this chapter shall be
27entitled to the tax exemption provided by law.
282. a. The owner of a forest reservation as provided in this
29chapter shall be entitled to the tax exemption provided by law
30for assessment years beginning on or after January 1, 2022,
31if, subject to the schedule for reapplication adopted under
32subsection 3, the owner is actively engaged in the operation or
33management of the forest reservation.
34b. The natural resource commission shall adopt rules
35pursuant to chapter 17A to interpret the requirement of
-32-1paragraph “a” that the owner of a forest reservation be
2actively engaged in the operation or management of the forest
3reservation, including but not limited to standards for
4wildlife control practices, invasive species control measures,
5conservation measures, and forest practices. The minimum
6requirements for being considered actively engaged in the
7operation or management of the forest reservation established
8by the natural resource commission shall be based on the
9conservation goals for the property as stated by the owner
10in the exemption application, the use of the property by the
11owner, and the characteristics of the property, including the
12pervasiveness of wildlife populations and invasive species
13populations on the property and the impact of such populations
14on the forest reservation and surrounding properties.
15c. (1) For each forest reservation application filed after
16February 1, 2021, but on or before February 1, 2022, the owner
17must file by February 1, 2022, with the department of natural
18resources, evidence that the owner meets the requirement for
19active engagement in the operation or management of the forest
20reservation.
21(2) The department of natural resources shall prepare and
22make available a form to assist owners in complying with the
23requirement of subparagraph (1).
243. The department of revenue, in consultation with the
25department of natural resources, shall by rule establish five
26regions within the state. Forest reservation exemptions
27for which the application was filed on or before February
281, 2021, shall terminate as provided in this subsection
29and the owners of such forest reservations must reapply for
30the exemption under this chapter. In order to efficiently
31process applications, the five regions shall be established
32to include approximately an equal number of acres of forest
33reservations in each region. For forest reservations subject
34to this subsection, the requirement for the owner to be
35actively engaged in the operation or management of the forest
-33-1reservation shall not apply until the owner reapplies for the
2forest reservation exemption.
3a. Exemptions for forest reservations in the first region
4shall end at the conclusion of the assessment year beginning
5January 1, 2021, and in order to continue receiving the
6exemption for the five-year period specified in section 427C.3,
7beginning with the assessment year beginning January 1, 2022,
8each owner must reapply on or before February 1, 2022.
9b. Exemptions for forest reservations in the second region
10shall end at the conclusion of the assessment year beginning
11January 1, 2022, and in order to continue receiving the
12exemption for the five-year period specified in section 427C.3,
13beginning with the assessment year beginning January 1, 2023,
14each owner must reapply on or before February 1, 2023.
15c. Exemptions for forest reservations in the third region
16shall end at the conclusion of the assessment year beginning
17January 1, 2023, and in order to continue receiving the
18exemption for the five-year period specified in section 427C.3,
19beginning with the assessment year beginning January 1, 2024,
20each owner must reapply on or before February 1, 2024.
21d. Exemptions for forest reservations in the fourth region
22shall end at the conclusion of the assessment year beginning
23January 1, 2024, and in order to continue receiving the
24exemption for the five-year period specified in section 427C.3,
25beginning with the assessment year beginning January 1, 2025,
26each owner must reapply on or before February 1, 2025.
27e. Exemptions for forest reservations in the fifth region
28shall end at the conclusion of the assessment year beginning
29January 1, 2025, and in order to continue receiving the
30exemption for the five-year period specified in section 427C.3,
31beginning with the assessment year beginning January 1, 2026,
32each owner must reapply on or before February 1, 2026.
33 Sec. 68. Section 427C.3, Code 2021, is amended to read as
34follows:
35427C.3 Forest reservation — duration of exemption.
-34- 11. A forest reservation shall contain not less than two
2hundred growing forest trees on each acre. If the area
3selected is a forest containing the required number of growing
4forest trees, it shall be accepted as a forest reservation
5under this chapter for a period of five years provided
6application is made or on file on or before February 1 of the
7exemption year. If any buildings are standing on an area
8selected as a forest reservation under this section or a
9fruit-tree reservation under section 427C.7, one acre of that
10area shall be excluded from the tax exemption. However, the
11exclusion of that acre shall not affect the area’s meeting the
12acreage requirement of section 427C.2.
132. For forest reservation exemption applications filed on
14or after February 2, 2021, but on or before February 1, 2022,
15the five-year period provided under subsection 1 begins with
16the assessment year beginning January 1, 2022, unless the owner
17fails to satisfy the requirement of section 427C.1, subsection
182, paragraph “c”.
19 Sec. 69. Section 427C.7, Code 2021, is amended to read as
20follows:
21427C.7 Fruit-tree reservation — duration of exemption.
22A fruit-tree reservation shall contain on each acre,
23at least forty apple trees, or seventy other fruit trees,
24growing under proper care and annually pruned and sprayed.
25A reservation may be claimed as a fruit-tree reservation,
26under this chapter, for a period of eight years after planting
27provided application is made or on file on or before February
281 of the exemption year. If any buildings are standing on an
29area selected as a fruit-tree reservation under this section,
30one acre of that area shall be excluded from the tax exemption.
31However, the exclusion of that acre shall not affect the area’s
32meeting the acreage requirement of section 427C.2.
33 Sec. 70. Section 427C.10, Code 2021, is amended to read as
34follows:
35427C.10 Restraint of livestock and limitation on use.
-35- 11. Cattle, horses, mules, sheep, goats, ostriches, rheas,
2emus, and swine shall not be permitted upon a fruit-tree or
3forest forest or fruit-tree reservation.
42. a. Fruit-tree and forest Forest and fruit-tree
5 reservations shall not be used for economic gain other than the
6gain from raising fruit or forest trees.
7b. The prohibition under paragraph “a” includes but is not
8limited to leases or charges for persons who enter or go on the
9reservation for the recreational use thereof or for hunting.
10 Sec. 71. Section 427C.12, Code 2021, is amended to read as
11follows:
12427C.12 Application — inspection — continuation of
13exemption — recapture of tax.
141. It shall be the duty of the assessor to secure the facts
15relative to fruit-tree and forest reservations by taking the
16sworn statement, or affirmation, of the owner or owners making
17application under this chapter; and to make special report to
18the county auditor of all reservations made in the county under
19the provisions of this chapter.
202. a. The board of supervisors shall designate the county
21conservation board or the assessor who shall inspect the area
22for which an application is filed for a fruit-tree or forest
23 reservation tax exemption before the application is accepted.
24b. The department of natural resources shall review the
25application for a forest reservation tax exemption before the
26application is accepted.
27c. Use of The department of natural resources shall use
28 aerial photographs may be substituted for on-site inspection
29when appropriate provided by the county assessor to determine
30if the application meets the criteria established by the
31natural resource commission to be a forest reservation.
323. The application can only be accepted if it meets the
33criteria established by the natural resource commission to
34be a fruit-tree or forest reservation department of natural
35resources may conduct an on-site review if necessary to verify
-36-1the eligibility of a forest reservation application.
24. Once the application has been accepted, the area shall
3continue to receive the tax exemption during each year of the
4applicable exemption period under section 427C.3 or 427C.7
5 in which the area is maintained as a fruit-tree or forest or
6fruit-tree reservation without the owner having to refile. If
7the property is sold or transferred, the seller shall notify
8the buyer that all, or part of, the property is in fruit-tree
9or forest reservation and subject to the recapture tax
10provisions of this section. The tax exemption shall continue
11to be granted for the remainder of the eight-year exemption
12 period for fruit-tree reservation and for the following years
13for forest reservation under section 427C.3 or 427C.7, or until
14the property no longer qualifies as a fruit-tree or forest or
15fruit-tree reservation.
165. a. The An area that is a fruit-tree reservation may
17be inspected each year by the county conservation board or
18the assessor to determine if the area is maintained as a
19fruit-tree or forest reservation. An area that is a forest
20reservation may be inspected each year by the department of
21natural resources to determine if the area is maintained as
22forest reservation. If the area is not maintained or is used
23for economic gain other than as a fruit-tree reservation during
24any year of the eight-year exemption period and any year of
25the following five years following the exemption period, if
26the property is no longer receiving an exemption under this
27chapter, or as a forest reservation during any year for which
28 of the exemption is granted period and any of the five years
29following those exemption years the exemption period, if
30the property is no longer receiving an exemption under this
31chapter, the assessor shall assess the property for taxation
32at its fair market value as of January 1 of that year and
33in addition the area shall be subject to a recapture tax.
34However, the area shall not be subject to the recapture tax if
35the owner, including one possessing under a contract of sale,
-37-1and the owner’s direct antecedents or descendants have owned
2the area for more than ten years.
3b. The recapture tax shall be computed by multiplying the
4consolidated levy for each of those years, if any, of the five
5preceding years for which the area received the exemption for
6fruit-tree or forest reservation times the assessed value of
7the area that would have been taxed but for the tax exemption.
8This tax shall be entered against the property on the tax list
9for the current year and shall constitute a lien against the
10property in the same manner as a lien for property taxes. The
11tax when collected shall be apportioned in the manner provided
12for the apportionment of the property taxes for the applicable
13tax year.
146. Upon expiration of the applicable exemption period, the
15owner of a forest or fruit-tree reservation may reapply for
16an exemption under this chapter if the property meets all the
17criteria for the exemption under this chapter.
18 Sec. 72. Section 441.22, Code 2021, is amended to read as
19follows:
20441.22 Forest and fruit-tree reservations.
21Forest and fruit-tree reservations fulfilling the conditions
22of sections 427C.1 to 427C.13 chapter 427C shall be exempt from
23taxation to the extent authorized in that chapter. In all
24other cases where trees are planted upon any tract of land,
25without regard to area, for forest, fruit, shade, or ornamental
26purposes, or for windbreaks, the assessor shall not increase
27the valuation of the property because of such improvements.
28 Sec. 73. SAVINGS PROVISION. This division of this Act,
29pursuant to section 4.13, does not affect the operation of,
30or prohibit the application of, prior provisions of chapter
31427C or section 441.22, or rules adopted under chapter 17A to
32administer prior provisions of chapter 427C or section 441.22,
33for assessment years beginning before January 1, 2022, and for
34duties, powers, protests, appeals, proceedings, actions, or
35remedies attributable to an assessment year beginning before
-38-1January 1, 2022.
2 Sec. 74. EFFECTIVE DATE. This division of this Act, being
3deemed of immediate importance, takes effect upon enactment.
4 Sec. 75. APPLICABILITY. This division of this Act applies
5to assessment years beginning on or after January 1, 2022.
6DIVISION IX
7TRANSIT FUNDING
8 Sec. 76. Section 28M.3, subsection 1, Code 2021, is amended
9to read as follows:
101. A regional transit district shall have all the rights,
11powers, and duties of a county enterprise pursuant to sections
12331.462 through 331.469 as they relate to the purpose for
13which the regional transit district is created, including
14the authority to issue revenue bonds for the establishment,
15construction, reconstruction, repair, equipping, remodeling,
16extension, maintenance, and operation of works, vehicles, and
17facilities of a regional transit district. In addition, a
18regional transit district, with the approval of the board of
19supervisors, may issue general obligation bonds as an essential
20county purpose pursuant to chapter 331, subchapter IV, part 3,
21for the establishment, construction, reconstruction, repair,
22equipping, remodeling, extension, maintenance, and operation of
23works, vehicles, and facilities of a regional transit district.
24Such general obligation bonds are payable from the property tax
25levy authorized in section 28M.5 and from the transit hotel and
26motel tax imposed under section 423A.4, subsection 1, paragraph
27“b”, if applicable.
28 Sec. 77. Section 28M.4, subsection 3, Code 2021, is amended
29to read as follows:
303. A commission shall adopt and certify an annual budget
31for the regional transit district. A commission in its budget
32shall allocate the revenue responsibilities of each county and
33city participating in the regional transit district, subject
34to reductions in the maximum authorized property tax levy
35rate under section 28M.5, if applicable. A commission shall
-39-1be considered a municipality for purposes of adopting and
2certifying a budget pursuant to chapter 24.
3 Sec. 78. Section 28M.4, Code 2021, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 4A. A commission may, following approval at
6election, impose a transit hotel and motel tax under section
7423A.4, subsection 1, paragraph “b”.
8 Sec. 79. Section 28M.4, subsections 5 and 6, Code 2021, are
9amended to read as follows:
105. A commission shall levy for the tax under section 28M.5
11 and shall control any tax revenues paid to the regional transit
12district the commission administers and, including all moneys
13derived from the operation of the regional transit district,
14a transit hotel and motel tax imposed under section 423A.4,
15subsection 1, paragraph “b”, the sale of its the district’s
16 property, interest on investments, or from any other source
17related to the regional transit district.
186. Tax revenues collected from a regional transit district
19levy or a transit hotel and motel tax under section 423A.4,
20subsection 1, paragraph “b”, shall be held by the county
21treasurer. Before the fifteenth day of each month, the county
22treasurer shall send the amount collected for each fund through
23the last day of the preceding month for direct deposit into
24the depository and account designated by the commission. The
25county treasurer shall send a notice to the secretary of the
26commission or the secretary’s designee stating the amount
27deposited, the date, the amount to be credited to each fund
28according to the budget, and the source of the revenue.
29 Sec. 80. Section 28M.5, subsections 1 and 4, Code 2021, are
30amended to read as follows:
311. a. The commission, with the approval of the board of
32supervisors of participating counties and the city council of
33participating cities in the chapter 28E agreement, may, subject
34to the reductions required under paragraph “b”, levy annually a
35tax not to exceed ninety-five cents per thousand dollars of the
-40-1assessed value of all taxable property in a regional transit
2district to the extent provided in this section. The chapter
328E agreement may authorize the commission to levy the tax at
4different rates within the participating cities and counties in
5amounts sufficient to meet the revenue responsibilities of such
6cities and counties as allocated in the budget adopted by the
7commission. However, for a city participating in a regional
8transit district, the total of all the tax levies imposed in
9the city pursuant to section 384.12, subsection 10, and this
10section shall not exceed the aggregate of ninety-five cents per
11thousand dollars of the assessed value of all taxable property
12in the participating city or the levy rate determined under
13paragraph “b”, whichever is less.
14b. (1) If a regional transit district imposes a transit
15hotel and motel tax under section 423A.4, subsection 1,
16paragraph “b”, the maximum levy rate authorized under this
17section shall be reduced as provided in this paragraph. For
18each fiscal year beginning on or after July 1 following the
19first calendar year for which the transit hotel and motel
20tax is imposed in the regional transit district, and until
21subparagraph (4) applies, the levy rate imposed under this
22section shall not exceed a rate equal to the rate that would
23be required for the fiscal year beginning July 1 following the
24election approving the transit hotel and motel tax to collect
25an amount equal to the property taxes collected by the regional
26transit district for the fiscal year beginning July 1 following
27the election approving the transit hotel and motel tax minus
28the amount of transit hotel and motel tax revenue received by
29the regional transit district for the first calendar year for
30which the transit hotel and motel tax is imposed.
31(2) If the regional transit district authorizes the
32commission to levy the tax at different rates within the
33participating cities and counties, as authorized under
34paragraph “a”, the levy rate reduction required under this
35paragraph shall be applied by the department of management
-41-1to each participating city and county based upon the revenue
2responsibilities of such cities and counties as provided in the
3chapter 28E agreement on the date the transit hotel and motel
4tax is approved at election.
5(3) If a regional transit district increases the rate of the
6transit hotel and motel tax, further reductions in the maximum
7authorized levy rate under this section shall be implemented
8in the same manner as provided under subparagraphs (1) and (2)
9for the reductions following initial imposition of the transit
10hotel and motel tax.
11(4) If the regional transit district repeals the transit
12hotel and motel tax, the maximum authorized levy rate shall be
13ninety-five cents per thousand dollars of the assessed value
14for fiscal years beginning after the date of termination under
15section 423A.4, unless the transit hotel and motel tax is
16reinstated.
174. The proceeds of the tax levy and other authorized
18revenues of the regional transit district shall be used for
19the operation and maintenance of a regional transit district,
20for payment of debt obligations of the district, and for the
21creation of a reserve fund. The commission may divide the
22territory of a regional transit district outside the boundaries
23of a city into separate service areas and impose a regional
24transit district levy not to exceed the maximum rate authorized
25by this section in each service area.
26 Sec. 81. Section 303.52, subsection 4, paragraph a, Code
272021, is amended to read as follows:
28a. The board of trustees may by ordinance impose a local
29 hotel and motel tax in accordance with chapter 423A.
30 Sec. 82. Section 331.402, subsection 2, paragraph f, Code
312021, is amended to read as follows:
32f. Impose a local hotel and motel tax in accordance with
33chapter 423A.
34 Sec. 83. Section 384.12, subsection 10, Code 2021, is
35amended to read as follows:
-42- 110. a. A tax for the operation and maintenance of a
2municipal transit system or for operation and maintenance of a
3regional transit district, and for the creation of a reserve
4fund for the system or district, in an amount not to exceed
5ninety-five cents per thousand dollars of assessed value
6each year or the levy rate determined under paragraph “b”,
7if applicable, when the revenues from the transit system or
8district are insufficient for such purposes.
9b. (1) If the city participates in a regional transit
10district under chapter 28M that imposes a transit hotel and
11motel tax under section 423A.4, the maximum levy rate shall be
12the levy rate determined under section 28M.5, subsection 1,
13paragraph “b”.
14(2) (a) If the city imposes a transit hotel and motel tax
15under section 423A.4, the maximum levy rate shall be reduced as
16provided in this subparagraph. For each fiscal year beginning
17on or after July 1 following the first calendar year for which
18the transit hotel and motel tax is imposed in the city, and
19until subparagraph division (c) applies, the levy rate imposed
20under this subsection shall not exceed a rate equal to the rate
21that would be required for the fiscal year beginning July 1
22following the election approving the transit hotel and motel
23tax to collect an amount equal to the property taxes collected
24by the city under this subsection for the fiscal year beginning
25July 1 following the election approving the transit hotel and
26motel tax minus the amount of transit hotel and motel tax
27revenue received by the city for the first calendar year for
28which the transit hotel and motel tax is imposed.
29(b) If a city increases the rate of the transit hotel and
30motel tax, further reductions in the maximum authorized levy
31rate under this subsection shall be implemented in the same
32manner as provided under subparagraph division (a) for the
33reduction following initial imposition of the transit hotel and
34motel tax.
35(c) If the city repeals the transit hotel and motel tax,
-43-1the maximum authorized levy rate shall be ninety-five cents
2per thousand dollars of the assessed value for fiscal years
3beginning after the date of termination under section 423A.4,
4unless the transit hotel and motel tax is reinstated.
5 Sec. 84. Section 423A.4, Code 2021, is amended to read as
6follows:
7423A.4 Locally imposed Local hotel and motel tax — transit
8hotel and motel tax.
91. a. A city, a county, or a land use district created
10under chapter 303, subchapter IV, may impose, by ordinance of
11the city council or by resolution of the board of supervisors
12or by ordinance of the board of trustees, a local hotel and
13motel tax, at a rate not to exceed seven percent, which shall
14be imposed in increments of one or more full percentage points
15upon the sales price from the renting of lodging. The tax
16when imposed by a city shall apply only within the corporate
17boundaries of that city, when imposed by a county shall apply
18only outside incorporated areas within that county, and when
19imposed by a land use district shall apply only within the
20corporate boundaries of that district. A local hotel and motel
21tax imposed by a city or county shall not be imposed within the
22corporate boundaries of a land use district during any period
23of time that the land use district is imposing a local hotel
24and motel tax.
25b. A regional transit district or a city that is not
26participating in a regional transit district may impose, by
27resolution of the regional transit district commission or by
28ordinance of the city council, a transit hotel and motel tax,
29at a rate not to exceed five percent, which shall be imposed
30in increments of one or more full percentage points upon the
31sales price from the renting of lodging. The tax when imposed
32by a regional transit district shall apply only within the
33boundaries of the regional transit district and may be imposed
34in addition to any tax imposed under paragraph “a”. The tax
35when imposed by a city shall apply only within the corporate
-44-1boundaries of that city and may be imposed in addition to any
2tax imposed under paragraph “a”.
32. Within ten days of the election at which a majority of
4those voting on the question favors the imposition, repeal,
5or change in the rate of the local hotel and motel tax or the
6transit hotel and motel tax, the county auditor shall give
7written notice by sending a copy of the abstract of votes from
8the favorable election to the director of revenue.
93. A local hotel and motel tax imposed by a city, county,
10or land use district shall be imposed on January 1 or July
111, following the notification of the director of revenue. A
12transit hotel and motel tax imposed by a regional transit
13district or a city shall be imposed on January 1, following the
14notification of the director of revenue. Once imposed, the tax
15shall remain in effect at the rate imposed for a minimum of
16one year. A local hotel and motel tax or a transit hotel and
17motel tax shall terminate only on June 30 or December 31. At
18least forty-five days prior to the tax being effective or prior
19to a revision in the tax rate or prior to the repeal of the
20tax, a city, county, or land use district, or regional transit
21district shall provide notice by mail of such action to the
22director of revenue. The director shall have the authority to
23waive the notice requirement.
244. a. A city, county, or land use district shall impose
25or repeal a hotel and motel tax or increase or reduce the
26tax rate only after an election at which a majority of those
27voting on the question favors imposition, repeal, or change
28in rate. A regional transit district or city shall impose or
29repeal a transit hotel and motel tax or increase or reduce the
30tax rate only after an election at which a majority of those
31voting on the question favors imposition, repeal, or change in
32rate. However, a local hotel and motel tax of a city or county
33shall not be repealed or reduced in rate if obligations are
34outstanding which are payable as provided in section 423A.7,
35unless funds sufficient to pay the principal, interest, and
-45-1premium, if any, on the outstanding obligations at and prior
2to maturity have been properly set aside and pledged for that
3purpose.
4b. (1) If the local hotel and motel tax applies only within
5the corporate boundaries of a city, only the registered voters
6of the city shall be permitted to vote. The election shall be
7held at the time of the regular city election or at a special
8election called for that purpose.
9(2) If the local hotel and motel tax applies only in the
10unincorporated areas of a county or only within the corporate
11boundaries of a land use district, only the registered voters
12of the unincorporated areas of the county or the registered
13voters of the land use district, as applicable, shall be
14permitted to vote. The election shall be held at the time of
15the general election or at a special election called for that
16purpose.
17(3) For a transit hotel and motel tax imposed by a regional
18transit district, only the registered voters of the regional
19transit district shall be permitted to vote. The election
20shall be held at the time of the general election or the
21regular city election.
22(4) For a transit hotel and motel tax imposed by a city,
23only the registered voters of the city shall be permitted to
24vote. The election shall be held at the time of the general
25election or the regular city election.
265. The locally imposed local hotel and motel tax and the
27transit hotel and motel tax shall be collected and remitted as
28provided in section 423A.5A.
29 Sec. 85. Section 423A.5A, subsection 3, Code 2021, is
30amended to read as follows:
313. Unless otherwise provided in this section, the
32state-imposed tax under section 423A.3 and any locally, the
33local hotel and motel tax imposed tax under section 423A.4, and
34the transit hotel and motel tax imposed under section 423A.4,
35 shall be collected by the lodging provider from the user of
-46-1that lodging and shall be remitted to the department. The
2lodging provider shall add the state-imposed tax to the sales
3price of the lodging and the tax, when collected, shall be
4stated as a distinct item, separate and apart from the sales
5price of the lodging and from the locally imposed tax taxes
6imposed under section 423A.4, if any. The lodging provider
7shall add the locally imposed each tax imposed under section
8423A.4, if any, to the sales price of the lodging and the tax,
9when collected, shall be stated as a distinct item, separate
10and apart from the sales price of the lodging, and from the
11state-imposed tax, and from the other taxes imposed under
12section 423A.4.
13 Sec. 86. Section 423A.6, subsections 1, 3, and 4, Code 2021,
14are amended to read as follows:
151. The director of revenue shall administer the state,
16 and local, and transit hotel and motel tax taxes as nearly as
17possible in conjunction with the administration of the state
18sales tax law, except that portion of the law which implements
19the streamlined sales and use tax agreement. The director
20shall provide appropriate forms, or provide on the regular
21state tax forms, for reporting state, and local, and transit
22 hotel and motel tax liability. All moneys received or refunded
23one hundred eighty days after the date on which a city, county,
24or land use district, or regional transit district, terminates
25its local hotel and motel tax or transit hotel and motel tax
26 and all moneys received from the state hotel and motel tax
27shall be deposited in or withdrawn from the general fund of the
28state.
293. The director, in consultation with local officials,
30shall collect and account for a local hotel and motel tax and a
31transit hotel and motel tax and shall credit all revenues to
32the local transient guest tax fund created in section 423A.7.
33Local authorities shall not require any tax permit not required
34by the director of revenue.
354. Section 422.25, subsection 4, sections 422.30, 422.67,
-47-1and 422.68, section 422.69, subsection 1, sections 422.70,
2422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
31, and sections 423.23, 423.24, 423.25, 423.31, 423.33,
4423.35, 423.37 through 423.42, and 423.47, consistent with the
5provisions of this chapter, apply with respect to the taxes
6authorized under this chapter, in the same manner and with
7the same effect as if the state, and local, and transit hotel
8and motel taxes were retail sales taxes within the meaning of
9those statutes. Notwithstanding this subsection, the director
10shall provide for quarterly filing of returns and for other
11than quarterly filing of returns both as prescribed in section
12423.31. The director may require all persons who are engaged
13in the business of deriving any sales price subject to tax
14under this chapter to register with the department. All taxes
15collected under this chapter by a retailer, lodging provider,
16lodging facilitator, lodging platform, or any other person are
17deemed to be held in trust for the state of Iowa and the local
18jurisdictions imposing the taxes.
19 Sec. 87. Section 423A.7, subsections 2 and 3, Code 2021, are
20amended to read as follows:
212. All moneys in the local transient guest tax fund shall
22be remitted at least quarterly by the department, pursuant to
23rules of the director of revenue, to each city in the amount
24collected under section 423A.4, subsection 1, paragraph “a”,
25 from businesses in that city, to each county in the amount
26collected under section 423A.4, subsection 1, paragraph “a”,
27 from businesses in the unincorporated areas of the county, and
28 to each land use district in the amount collected under section
29423A.4, subsection 1, paragraph “a”, from businesses in that
30land use district, to each regional transit district in the
31amount collected under section 423A.4, subsection 1, paragraph
32“b”, from businesses within the boundaries of the regional
33transit district and to each city in the amount collected under
34section 423A.4, subsection 1, paragraph “b”, from businesses
35in that city.
-48- 13. Moneys received by the city from this fund collected
2under section 423A.4, subsection 1, paragraph “a”, shall be
3credited to the general fund of the city, subject to the
4provisions of subsection 4.
5 Sec. 88. Section 423A.7, Code 2021, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 6. a. The revenue derived by a regional
8transit district from the transit hotel and motel tax
9authorized by section 423A.4 shall be expended exclusively for
10the purposes of the regional transit district under chapter 28M
11and shall result in a reduction in the maximum levy rate for
12the regional transit district, as provided in section 28M.5,
13subsection 1, paragraph “b”. However, the amount of revenue
14derived by the regional transit district in the second calendar
15year that transit hotel and motel tax is imposed that exceeds
16the amount of revenue derived by the regional transit district
17in the first calendar year that transit hotel and motel tax
18is imposed shall be used for property tax relief for the levy
19under section 28M.5 in addition to the reduction to the levy
20rate as the result of the revenue derived in the first calendar
21year that the transit hotel and motel tax is imposed.
22b. The revenue derived by a city from the transit hotel
23and motel tax authorized by section 423A.4 shall be expended
24exclusively for the operation and maintenance of a municipal
25transit system and shall result in a reduction in the maximum
26levy rate for the city under section 384.12, subsection 10.
27However, the amount of revenue derived by the city in the
28second calendar year that transit hotel and motel tax is
29imposed that exceeds the amount of revenue derived by the
30city in the first calendar year that transit hotel and motel
31tax is imposed shall be used for property tax relief for the
32levy under section 384.12, subsection 10, in addition to the
33reduction to the levy rate as the result of the revenue derived
34in the first calendar year that the transit hotel and motel tax
35is imposed.
-49-md/jh/mb
2programs, and operations, by modifying provisions relating
3to mental health and disability services funding, school
4district funding, commercial and industrial property tax
5replacement payments, and other specified tax provisions,
6making appropriations, providing penalties, and including
7effective date and applicability provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2MENTAL HEALTH FUNDING
3 Section 1. Section 123.38, subsection 2, paragraph b, Code
42021, is amended to read as follows:
5b. For purposes of this subsection, any portion of license
6or permit fees used for the purposes authorized in section
7331.424, subsection 1, paragraph “a”, subparagraphs (1) and
8(2), and in section 331.424A, shall not be deemed received
9either by the division or by a local authority.
10 Sec. 2. Section 218.99, Code 2021, is amended to read as
11follows:
12218.99 Counties to be notified of patients’ personal
13accounts.
14The administrator in control of a state institution shall
15direct the business manager of each institution under the
16administrator’s jurisdiction which is mentioned in section
17331.424, subsection 1, paragraph “a”, subparagraphs (1) and
18(2), and for which services are paid under section 331.424A
19by the county of residence or a mental health and disability
20services region, to quarterly inform the county of residence
21of any patient or resident who has an amount in excess of two
22hundred dollars on account in the patients’ personal deposit
23fund and the amount on deposit. The administrators shall
24direct the business manager to further notify the county of
25residence at least fifteen days before the release of funds in
26excess of two hundred dollars or upon the death of the patient
27or resident. If the patient or resident has no residency in
28this state or the person’s residency is unknown, notice shall
29be made to the director of human services and the administrator
30in control of the institution involved.
31 Sec. 3. Section 225.24, Code 2021, is amended to read as
32follows:
33225.24 Collection of preliminary expense.
34Unless a committed private patient or those legally
35responsible for the patient’s support offer to settle the
-1-1amount of the claims, the regional administrator for the
2person’s county of residence shall collect, by action if
3necessary, the amount of all claims for per diem and expenses
4that have been approved by the regional administrator for the
5county and paid by the regional administrator as provided under
6section 225.21. Any amount collected shall be credited to the
7county mental health and disabilities disability services fund
8 region combined account created in accordance with section
9331.424A 331.391.
10 Sec. 4. Section 249N.8, subsection 1, Code 2021, is amended
11to read as follows:
121. Biennially, a report of the results of a review, by
13county and region, of mental health services previously funded
14through taxes levied by counties pursuant to section 331.424A,
15Code 2021, or funds administered by a mental health and
16disability services region that are funded during the reporting
17period under the Iowa health and wellness plan.
18 Sec. 5. Section 331.389, subsection 1, paragraph b, Code
192021, is amended to read as follows:
20b. If a county has been exempted prior to July 1, 2014, from
21the requirement to enter into a regional service system, the
22county and the county’s board of supervisors shall fulfill all
23requirements and be eligible as a region under this chapter and
24chapter chapters 222, 225, 225C, 226, 227, 229, and 230 for a
25regional service system, regional service system management
26plan, regional governing board, and regional administrator,
27and any other provisions applicable to a region of counties
28providing local mental health and disability services.
29Additionally, a county exempted under this subsection shall be
30considered a region for purposes of chapter 426B.
31 Sec. 6. Section 331.389, subsection 5, paragraph a,
32subparagraph (2), Code 2021, is amended to read as follows:
33(2) Reduce the amount of the annual state funding provided
34for the regional service system or exempted county, including
35amounts received under section 426B.3 or from the risk pool
-2-1under section 426B.6, not to exceed fifteen percent of the
2amount.
3 Sec. 7. Section 331.391, subsection 1, Code 2021, is amended
4to read as follows:
51. The funding under the control of the governing board
6shall be maintained in a combined account, in separate county
7accounts that are under the control of the governing board, or
8pursuant to other arrangements authorized by law that limit the
9administrative burden of such control while facilitating public
10scrutiny of financial processes. A county exempted under
11section 331.389, subsection 1, shall maintain a county mental
12health and disability services fund for the deposit of funding
13received under section 426B.3 or from the risk pool under
14section 426B.6 and appropriations specifically authorized to be
15made from the county mental health and disability services fund
16shall not be made from any other fund of the county. A county
17mental health and disability services fund established by an
18exempt county, to the extent feasible, shall be considered to
19be the same as a region combined account and shall be subject
20to the same requirements as a region’s combined account.
21 Sec. 8. Section 331.391, subsection 4, paragraphs a, b, and
22c, Code 2021, are amended to read as follows:
23a. If a region is meeting the financial obligations for
24implementation of its regional service system management plan
25for a fiscal year and residual funding is anticipated, the
26regional administrator shall may reserve an adequate amount of
27unobligated and unencumbered funds for cash flow of expenditure
28obligations in the next fiscal year.
29b. Each region shall certify to the department of management
30 human services on or before December 1, 2022 2021, and each
31December 1 thereafter, the amount of the region’s cash flow
32amount in the combined account that is attributable to each
33county within the region based upon each county’s proportionate
34amount of funding and contributions to the region or other
35methodology specified in the regional governance agreement
-3-1or certify the cash flow amount for each separate county
2account that is under the control of the governing board at the
3conclusion of the most recently completed fiscal year.
4c. For fiscal years beginning on or after July 1, 2023,
5the region’s cash flow amount, either reserved in the region’s
6combined account or reserved among all separate county accounts
7under the control of the governing board, shall not exceed
8forty five percent of the gross actual expenditures from the
9combined account or from all separate county accounts under
10control of the governing board for the fiscal year preceding
11the fiscal year in progress.
12 Sec. 9. Section 331.392, subsection 4, paragraph a, Code
132021, is amended to read as follows:
14a. Methods for pooling, management, and expenditure of the
15funding under the control of the regional administrator. If
16the agreement does not provide for pooling of the participating
17county moneys in a single fund, the agreement shall specify how
18the participating county moneys will be subject to the control
19of the regional administrator.
20 Sec. 10. Section 331.393, subsection 10, Code 2021, is
21amended to read as follows:
2210. The director’s approval of a regional plan shall not be
23construed to constitute certification of the respective county
24budgets or of the region’s budget.
25 Sec. 11. Section 331.394, subsection 4, Code 2021, is
26amended to read as follows:
274. If a county of residence is part of a mental health and
28disability services region that has agreed to pool funding and
29liability for services, the The responsibilities of the county
30under law regarding such mental health and disability services
31shall be performed on behalf of the county by the regional
32administrator. The county of residence or the county’s mental
33health and disability services region, as applicable, is
34responsible for paying the public costs of the mental health
35and disability services that are not covered by the medical
-4-1assistance program under chapter 249A and are provided in
2accordance with the region’s approved service management plan
3to persons who are residents of the county or region.
4 Sec. 12. Section 331.424A, subsection 1, paragraph b, Code
52021, is amended by striking the paragraph.
6 Sec. 13. Section 331.424A, subsection 3, Code 2021, is
7amended to read as follows:
83. a. County revenues from taxes and other sources
9designated by a county for mental health and disabilities
10services shall be credited to the county mental health and
11disabilities services fund which shall be created by the
12county. The Until the required transfer of funds under
13paragraph “b”, the board shall make appropriations from the fund
14for payment of services provided under the regional service
15system management plan approved pursuant to section 331.393.
16The For fiscal years beginning before July 1, 2022, the county
17may pay for the services in cooperation with other counties
18by pooling appropriations from the county services fund with
19appropriations from the county services fund of other counties
20through the county’s regional administrator, or through another
21arrangement specified in the regional governance agreement
22entered into by the county under section 331.392.
23b. Notwithstanding section 331.432, subsection 3, upon
24conclusion of the fiscal year beginning July 1, 2021, except
25for an exempt county under section 331.391, subsection 1,
26the county treasurer shall transfer the remaining balance of
27the county’s county services fund created under paragraph
28“a”, including all unobligated and unencumbered funds, to the
29county’s region to which the county belongs in the fiscal year
30beginning July 1, 2022, for deposit in the region’s combined
31account under section 331.391.
32 Sec. 14. Section 331.424A, subsection 4, paragraph a, Code
332021, is amended to read as follows:
34a. An amount of unobligated and unencumbered funds, as
35specified in the regional governance agreement entered into
-5-1by the county under section 331.392, shall, for fiscal years
2beginning before July 1, 2022, be reserved in the county
3services fund to address cash flow obligations in the next
4fiscal year, subject to the limitations of this subsection.
5 Sec. 15. Section 331.424A, subsection 4, paragraphs c and d,
6Code 2021, are amended by striking the paragraphs.
7 Sec. 16. Section 331.424A, subsections 5, 6, and 9, Code
82021, are amended to read as follows:
95. Receipts from the state or federal government for fiscal
10years beginning before July 1, 2022, for the mental health
11and disability services administered or paid for by a county
12shall be credited to the county services fund, including moneys
13distributed to the county from the department of human services
14and moneys allocated under chapter 426B.
156. For each fiscal year beginning before July 1, 2022, the
16county shall certify a levy for payment of services. For each
17such fiscal year, county revenues from taxes imposed by the
18county credited to the county services fund shall not exceed an
19amount equal to the county budgeted amount for the fiscal year.
20A levy certified under this section is not subject to the
21appeal provisions of section 331.426or to any other provision
22in law authorizing a county to exceed, increase, or appeal a
23property tax levy limit.
249. a. For the fiscal year beginning July 1, 2017, and
25each subsequent fiscal year beginning before July 1, 2022, the
26county budgeted amount determined for each county shall be the
27amount necessary to meet the county’s financial obligations for
28the payment of services provided under the regional service
29system management plan approved pursuant to section 331.393,
30not to exceed an amount equal to the product of the regional
31per capita expenditure target amount twenty-one dollars and
32fourteen cents multiplied by the county’s population, and, for
33fiscal years beginning on or after July 1, 2023, reduced by
34the amount of the county’s cash flow reduction amount for the
35fiscal year calculated under subsection 4, if applicable.
-6- 1b. If a county officially joins a different region, the
2county’s budgeted amount for a fiscal year beginning before
3July 1, 2022, shall be the amount necessary to meet the
4county’s financial obligations for payment of services provided
5under the new region’s regional service system management plan
6approved pursuant to section 331.393, not to exceed an amount
7equal to the product of the new region’s regional per capita
8expenditure target amount twenty-one dollars and fourteen cents
9 multiplied by the county’s population, and, for fiscal years
10beginning on or after July 1, 2023, reduced by the amount of
11the county’s cash flow reduction amount for the fiscal year
12calculated under subsection 4, if applicable.
13 Sec. 17. Section 331.424A, Code 2021, is amended by adding
14the following new subsection:
15 NEW SUBSECTION. 10. This section is repealed July 1, 2022.
16 Sec. 18. Section 331.432, subsection 3, Code 2021, is
17amended to read as follows:
183. a. Except as authorized in section 331.477, transfers
19of moneys between the county services fund created pursuant
20to section 331.424A and any other fund are prohibited. This
21subsection paragraph does not apply to appropriations made or
22the value of in-kind care and treatment provided pursuant to
23section 347.7, subsection 1, paragraph “c”, Code 2021, or to
24transfers from a county public hospital fund under section
25347.7. This paragraph is repealed July 1, 2022.
26b. Payments or transfers of moneys from any fund of the
27county to a mental health and disability services region’s
28combined account under section 331.391 are prohibited. This
29paragraph applies to fiscal years beginning on or after July
301, 2022, but does not apply to transfers from a county public
31hospital fund under section 347.7 for the fiscal year beginning
32July 1, 2022, or the fiscal year beginning July 1, 2023.
33 Sec. 19. Section 347.7, subsection 1, paragraph c, Code
342021, is amended by striking the paragraph.
35 Sec. 20. Section 426B.1, subsection 2, Code 2021, is amended
-7-1to read as follows:
22. Moneys shall be distributed from the property tax relief
3fund to counties for the mental health and disability regional
4service system for mental health and disabilities services, in
5accordance with the appropriations made to the fund and other
6statutory requirements.
7 Sec. 21. Section 426B.2, Code 2021, is amended to read as
8follows:
9426B.2 Property tax relief fund payments.
10The director of human services shall draw warrants on the
11property tax relief fund, payable to the county treasurer
12 regional administrator in the amount due to a county mental
13health and disability services region in accordance with
14statutory requirements, and mail the warrants to the county
15auditors regional administrator in July and January of each
16year.
17 Sec. 22. NEW SECTION. 426B.3 Mental health and disability
18services regional supplement fund.
191. A mental health and disability services regional
20supplement fund is created in the office of the treasurer of
21state under the authority of the department of human services.
22The fund shall be separate from the general fund of the state
23and the balance in the fund shall not be considered part of
24the balance of the general fund of the state. Moneys in the
25fund include appropriations made to the fund and other moneys
26deposited into the fund. Moneys in the fund shall be used
27solely for purposes of making regional supplement payments
28under this section.
292. For each fiscal year beginning on or after July 1, 2021,
30there is appropriated from the general fund of the state to the
31mental health and disability services regional supplement fund
32an amount necessary to make all regional supplement payments
33under this section for that fiscal year.
343. For each fiscal year beginning on or after July 1, 2021,
35the moneys available in a fiscal year in the mental health and
-8-1disability services state supplement fund are appropriated to
2the department of human services and shall be distributed to
3each mental health and disability services region, as defined
4in section 426B.6, on a per capita basis calculated under
5subsection 4 using each region’s population, as defined in
6section 426B.6, for that fiscal year.
74. The amount of each region’s regional supplement payment
8shall be determined as follows:
9a. For the fiscal year beginning July 1, 2021, an amount
10equal to the product of fifteen dollars and eighty-six cents
11multiplied by the sum of the region’s population for the fiscal
12year.
13b. For the fiscal year beginning July 1, 2022, an amount
14equal to the product of thirty-eight dollars multiplied by the
15sum of the region’s population for the fiscal year.
16c. For the fiscal year beginning July 1, 2023, an amount
17equal to the product of forty dollars multiplied by the sum of
18the region’s population for the fiscal year.
19d. For the fiscal year beginning July 1, 2024, an amount
20equal to the product of forty-two dollars multiplied by the sum
21of the region’s population for the fiscal year.
22e. (1) For the fiscal year beginning July 1, 2025, and each
23succeeding fiscal year, an amount equal to the product of the
24sum of the region’s population for the fiscal year multiplied
25by the sum of the dollar amount used to calculate the regional
26supplement payments under this subsection for the immediately
27preceding fiscal year plus the regional supplement growth
28factor for the fiscal year.
29(2) For purposes of this paragraph, “regional supplement
30growth factor” for a fiscal year is an amount equal to the
31product of the dollar amount used to calculate the regional
32supplement payments under this subsection for the immediately
33preceding fiscal year multiplied by the percent increase, if
34any, in the amount of sales tax revenue deposited into the
35general fund of the state under section 423.2A, subsection
-9-11, paragraph “a”, less the transfers required under section
2423.2A, subsection 2, between the fiscal year beginning three
3years prior to the applicable fiscal year and the fiscal year
4beginning two years prior to the applicable year, but not to
5exceed one and one-half percent.
65. Regional supplement payments received by a region
7shall be deposited in the region’s combined account under
8section 331.391 and used solely for providing mental health
9and disability services under the regional service system
10management plan.
116. Regional supplement payments from the mental health
12and disability services regional supplement fund shall be
13paid in quarterly installments to the appropriate regional
14administrator in July, October, January, and April of each
15fiscal year.
167. a. For the fiscal year beginning July 1, 2021, each
17mental health and disability services region for which the
18amount certified during the fiscal year under section 331.391,
19subsection 4, paragraph “b”, exceeds forty percent of the actual
20expenditures of the region for the fiscal year preceding the
21fiscal year in progress, the remaining quarterly payments of
22the region’s regional supplement payment shall be reduced by
23an amount equal to the amount by which the region’s amount
24certified under section 331.391, subsection 4, paragraph “b”,
25exceeds forty percent of the actual expenditures of the region
26for the fiscal year preceding the fiscal year in progress,
27but the amount of the reduction shall not exceed the total
28amount of the region’s regional supplement payment for the
29fiscal year. If the region’s remaining quarterly payments are
30insufficient to effectuate the required reductions under this
31paragraph, the region is required to pay to the department of
32human services any amount for which the reduction in quarterly
33payments could not be made. The amount of reductions to
34quarterly payments and amounts paid to the department under
35this paragraph shall be transferred and credited to the risk
-10-1pool under section 426B.6.
2b. For the fiscal year beginning July 1, 2022, each mental
3health and disability services region for which the amount
4certified during the fiscal year under section 331.391,
5subsection 4, paragraph “b”, exceeds twenty percent of the
6actual expenditures of the region for the fiscal year preceding
7the fiscal year in progress, the remaining quarterly payments
8of the region’s regional supplement payment shall be reduced
9by an amount equal to the amount by which the region’s amount
10certified under section 331.391, subsection 4, paragraph “b”,
11exceeds twenty percent of the actual expenditures of the region
12for the fiscal year preceding the fiscal year in progress,
13but the amount of the reduction shall not exceed the total
14amount of the region’s regional supplement payment for the
15fiscal year. If the region’s remaining quarterly payments are
16insufficient to effectuate the required reductions under this
17paragraph, the region is required to pay to the department of
18human services any amount for which the reduction in quarterly
19payments could not be made. The amount of reductions to
20quarterly payments and amounts paid to the department under
21this paragraph shall be transferred and credited to the risk
22pool under section 426B.6.
23c. For the fiscal year beginning July 1, 2023, and each
24succeeding fiscal year, each mental health and disability
25services region for which the amount certified during the
26fiscal year under section 331.391, subsection 4, paragraph “b”,
27exceeds five percent of the actual expenditures of the region
28for the fiscal year preceding the fiscal year in progress,
29the remaining quarterly payments of the region’s regional
30supplement payment shall be reduced by an amount equal to the
31amount by which the region’s amount certified under section
32331.391, subsection 4, paragraph “b”, exceeds five percent
33of the actual expenditures of the region for the fiscal year
34preceding the fiscal year in progress, but the amount of the
35reduction shall not exceed the total amount of the region’s
-11-1regional supplement payment for the fiscal year. If the
2region’s remaining quarterly payments are insufficient to
3effectuate the required reductions under this paragraph, the
4region is required to pay to the department of human services
5any amount for which the reduction in quarterly payments could
6not be made. The amount of reductions to quarterly payments
7and amounts paid to the department under this paragraph shall
8be transferred and credited to the risk pool under section
9426B.6.
10 Sec. 23. Section 426B.4, Code 2021, is amended to read as
11follows:
12426B.4 Rules.
13The mental health and disability services commission shall
14consult with county representatives regional administrators
15 and the director of human services in prescribing forms and
16adopting rules pursuant to chapter 17A to administer this
17chapter.
18 Sec. 24. NEW SECTION. 426B.6 Risk pool.
191. For the purposes of this chapter, unless the context
20otherwise requires:
21a. “Mental health and disability services region” means
22a mental health and disability services region formed in
23accordance with section 331.389.
24b. “Population” means, as of July 1 of the fiscal year
25preceding the fiscal year in which the population figure is
26applied, the county population shown by the latest preceding
27certified federal census or the latest applicable population
28estimate issued by the United States census bureau, whichever
29is most recent.
30c. “Regional administrator” means the regional administrator
31of a mental health and disability services region, as defined
32in section 331.388.
332. A risk pool is created in the property tax relief fund
34under section 426B.1. The pool shall consist of the moneys
35appropriated or credited to the pool by law, including amounts
-12-1credited to the risk pool under section 426B.3, subsection 7.
2For fiscal years beginning on or after July 1, 2021, there is
3appropriated from the general fund of the state to the risk
4pool the following amounts to be used for the purposes of this
5section:
6a. For the fiscal year beginning July 1, 2021, nine million
7nine hundred sixty thousand five hundred ninety dollars.
8b. For the fiscal year beginning July 1, 2022, five million
9one hundred seven thousand three hundred forty dollars.
10c. (1) For each fiscal year beginning on or after July 1,
112025, an amount equal to the risk pool growth factor multiplied
12by the ending balance of the risk pool at the conclusion of
13the fiscal year ending June 30 immediately preceding the
14application deadline under subsection 4 for the fiscal year for
15which the appropriation is made.
16(2) For purposes of this paragraph, the “risk pool growth
17factor” for each fiscal year is the percent increase, if any, in
18the amount of sales tax revenue deposited into the general fund
19of the state under section 423.2A, subsection 1, paragraph “a”,
20less the transfers required under section 423.2A, subsection
212, between the fiscal year beginning three years prior to the
22applicable fiscal year and the fiscal year beginning two years
23prior to the applicable year, minus one and one-half percent,
24and the risk pool growth factor for any fiscal year shall not
25exceed three and one-half percent.
263. A risk pool board is created. The board shall consist
27of two mental health and disability services region governing
28board members, two mental health and disability services region
29fiscal officers or agents, a member of the mental health and
30disability services commission who is not a governing board
31member or chief operating officer of a mental health and
32disability services region, a member of the county finance
33committee created in chapter 333A who is not an elected
34official, a representative of a provider of mental health or
35developmental disabilities services selected from nominees
-13-1submitted by the Iowa association of community providers, a
2representative of a provider of mental health developmental
3disabilities services selected from nominees submitted by
4the Iowa behavioral health association, one member of the
5children’s behavioral health system state board who is not a
6governing board member or chief operating officer of a mental
7health and disability services region, and two chief operating
8officers of mental health and disability services regions,
9all appointed by the governor, and one member appointed by
10the director of human services. All members appointed by
11the governor shall be subject to confirmation by the senate.
12Members shall serve for three-year terms. A vacancy shall
13be filled in the same manner as the original appointment.
14Expenses and other costs of the risk pool board members
15representing counties shall be paid by the the region to which
16the member’s county belongs. Expenses and other costs of risk
17pool board members who do not represent counties shall be paid
18by the department of human services. Staff assistance to the
19board shall be provided by the department of human services.
20Actuarial expenses and other direct administrative costs shall
21be charged to the pool.
224. To receive assistance from the risk pool, a regional
23administrator must apply to the risk pool board on or before
24October 31 preceding the fiscal year for which assistance is
25requested. The purpose of the assistance shall be to provide
26financial support for services provided by the regional
27administrator’s mental health and disability services region.
28The risk pool board shall make its final decisions on or
29before December 15 regarding acceptance or rejection of the
30applications for assistance and the total amount accepted shall
31be considered obligated.
325. In addition to application and assistance requirements
33under subsections 6, 7, and 9, basic eligibility for risk
34pool assistance requires that a mental health and disability
35services region meet all of the following conditions:
-14- 1a. The mental health and disability services region is in
2compliance with the regional service system management plan
3requirements of section 331.393.
4b. (1) In the fiscal year that commenced two years prior
5to the fiscal year of application for assistance, the ending
6balance, under generally accepted accounting principles, of
7the mental health and disability services region’s combined
8services funds was equal to or less than the ending balance
9threshold under subparagraph (2) for the fiscal year for which
10assistance is requested.
11(2) For purposes of this paragraph “b”, “ending balance
12threshold” means the following:
13(a) For applications for assistance for the fiscal
14year beginning July 1, 2021, forty percent of the actual
15expenditures of the mental health and disability services
16region for the fiscal year that commenced two years prior to
17the fiscal year of application for assistance.
18(b) For applications for assistance for the fiscal
19year beginning July 1, 2022, twenty percent of the actual
20expenditures of the mental health and disability services
21region for the fiscal year that commenced two years prior to
22the fiscal year of application for assistance.
23(c) For applications for assistance for fiscal years
24beginning on or after July 1, 2023, five percent of the actual
25expenditures of the mental health and disability services
26region for the fiscal year that commenced two years prior to
27the fiscal year of application for assistance.
286. The board shall review the fiscal year-end financial
29records for all mental health and disability services regions
30that are granted risk pool assistance. If the board determines
31a mental health and disability services region’s actual need
32for risk pool assistance was less than the amount of risk pool
33assistance granted to the mental health and disability services
34region, the mental health and disability services region
35shall refund the difference between the amount of assistance
-15-1granted and the actual need. The mental health and disability
2services region shall submit the refund within thirty days of
3receiving notice from the board. Refunds shall be credited
4to the risk pool. The mental health and disability services
5commission shall adopt rules pursuant to chapter 17A providing
6criteria for the purposes of this subsection and as necessary
7to implement the other provisions of this section.
87. The board shall determine application requirements to
9ensure prudent use of risk pool assistance. The board may
10accept or reject an application for assistance in whole or in
11part. The decision of the board is final.
128. The total amount of risk pool assistance shall be limited
13to the amount available in the risk pool for a fiscal year. Any
14unobligated balance in the risk pool at the close of a fiscal
15year shall remain in the risk pool for distribution in the
16succeeding fiscal year.
179. Risk pool assistance shall only be made available to
18address one or more of the following circumstances:
19a. Continuing support for core services.
20b. Avoiding the need for reduction or elimination of
21critical services when the reduction or elimination places an
22individual’s health or safety at risk.
23c. Avoiding the need for reduction or elimination of core
24crisis services when the reduction or elimination places the
25public’s health or safety at risk.
26d. Avoiding the need for reduction or elimination of
27services or other support that maintain an individual in
28a community setting or that would create a risk that the
29individuals needing services and supports would be placed in
30more restrictive, higher cost settings.
3110. Subject to the amount available and obligated from the
32risk pool for a fiscal year, the department of human services
33shall annually calculate the amount of moneys due to eligible
34mental health and disability services regions in accordance
35with the board’s decisions and that amount is appropriated from
-16-1the risk pool to the department for payment of the moneys due.
2The department shall authorize the issuance of warrants payable
3to the mental health and disability services regions for the
4amounts due and the warrants shall be issued on or before
5January 1.
611. On or before March 1 and September 1 of each fiscal
7year, the department of human services shall provide the risk
8pool board with a report of the financial condition of each
9funding source administered by the board. The report shall
10include but is not limited to an itemization of the funding
11source’s balances, types and amount of revenues credited, and
12payees and payment amounts for the expenditures made from the
13funding source during the reporting period.
1412. If the board has made its decisions but has determined
15that there are otherwise qualifying requests for risk pool
16assistance that are beyond the amount available in the risk
17pool fund for a fiscal year, the board shall compile a list of
18such requests and the supporting information for the requests.
19The list and information shall be submitted to the mental
20health and disability services commission, the children’s
21behavioral health system state board, the department of human
22services, and the general assembly.
23 Sec. 25. ADJUSTMENT TO PROPERTY TAXES CERTIFIED UNDER
24SECTION 331.424A — FY 2021-2022. If this division of this
25Act takes effect after March 31, 2021, for each county for
26which the amount of taxes certified for levy for the purposes
27of section 331.424A for the fiscal year beginning July 1,
282021, exceeds the product of the population of the county as
29determined under section 331.424A, subsection 1, paragraph
30“e”, multiplied by twenty-one dollars and fourteen cents,
31the department of management shall reduce the amount of such
32taxes certified for levy to an amount not to exceed the
33product of the population of the county as determined under
34section 331.424A, subsection 1, paragraph “e”, multiplied by
35twenty-one dollars and fourteen cents and shall revise the rate
-17-1of taxation as necessary to raise the reduced amount. The
2department of management shall report the reduction in the
3certified taxes and the revised rate of taxation to the county
4auditors by June 15, 2021.
5 Sec. 26. IMPLEMENTATION OF RISK POOL UNDER SECTION 426B.6
6— EMERGENCY RULEMAKING.
71. In order to timely implement the provisions of this
8division of this Act establishing the risk pool for mental
9health and disability services regions for the fiscal year
10beginning July 1, 2021, and the fiscal year beginning July
111, 2022, the director of human services shall, subject to
12the membership requirements of section 426B.6, subsection 3,
13appoint temporary members of the risk pool board to review
14and approve risk pool assistance applications and establish
15alternative application deadlines and expedited application
16review and approval timelines.
172. The department of human services may adopt
18administrative rules under section 17A.4, subsection 3, and
19section 17A.5, subsection 2, paragraph “b”, to implement
20provisions of this division of this Act and the rules shall
21become effective immediately upon filing or on a later
22effective date specified in the rules, unless the effective
23date of the rules is delayed or the applicability of the rules
24is suspended by the administrative rules review committee. Any
25rules adopted in accordance with this section shall not take
26effect before the rules are reviewed by the administrative
27rules review committee. The delay authority provided to the
28administrative rules review committee under section 17A.8,
29subsection 9, shall be applicable to a delay imposed under this
30section, notwithstanding a provision in that section making it
31inapplicable to section 17A.5, subsection 2, paragraph “b”.
32Any rules adopted in accordance with the provisions of this
33section shall also be published as a notice of intended action
34as provided in section 17A.4.
35 Sec. 27. EFFECTIVE DATE. This division of this Act, being
-18-1deemed of immediate importance, takes effect upon enactment.
2DIVISION II
3COMMERCIAL AND INDUSTRIAL PROPERTY TAX REPLACEMENT PAYMENTS
4 Sec. 28. Section 2.48, subsection 3, paragraph f,
5subparagraph (6), Code 2021, is amended by striking the
6subparagraph.
7 Sec. 29. Section 331.512, subsection 15, Code 2021, is
8amended by striking the subsection.
9 Sec. 30. Section 331.559, subsection 27, Code 2021, is
10amended by striking the subsection.
11 Sec. 31. Section 441.21A, subsection 1, paragraph a, Code
122021, is amended to read as follows:
13a. For each fiscal year beginning on or after July 1, 2014,
14but before July 1, 2027, there is appropriated from the general
15fund of the state to the department of revenue an amount
16necessary for the payment of all commercial and industrial
17property tax replacement claims under this section for the
18fiscal year. However, for a the fiscal year years beginning
19on or after July 1, 2017, July 1, 2018, July 1, 2019, July 1,
202020, and July 1, 2021, the total amount of moneys appropriated
21from the general fund of the state to the department of revenue
22for the payment of commercial and industrial property tax
23replacement claims in that each fiscal year shall not exceed
24the total amount of money necessary to pay all commercial and
25industrial property tax replacement claims for the fiscal year
26beginning July 1, 2016.
27 Sec. 32. Section 441.21A, subsections 2 and 3, Code 2021,
28are amended to read as follows:
292. a. Beginning with the For each fiscal year beginning
30on or after July 1, 2014, but before July 1, 2022, each county
31treasurer shall be paid by the department of revenue an
32amount equal to the amount of the commercial and industrial
33property tax replacement claims in the county, as calculated
34in subsection 4. If an amount appropriated for a the fiscal
35year beginning on July 1, 2017, July 1, 2018, July 1, 2019,
-19-1July 1, 2020, or July 1, 2021, is insufficient to pay all
2replacement claims for the fiscal year, the director of revenue
3shall prorate the payment of replacement claims to the county
4treasurers and shall notify the county auditors of the pro rata
5percentage on or before September 30.
6b. For each fiscal year beginning on or after July 1, 2022,
7but before July 1, 2027, each county treasurer shall be paid
8by the department of revenue an amount equal to the sum of the
9commercial and industrial property tax replacement claims for
10all taxing authorities, or portion thereof, located in the
11county, as calculated in subsection 4A. The county treasurer
12shall pay to each taxing authority the taxing authority’s
13commercial and industrial property tax replacement claim, or
14portion thereof, as calculated in subsection 4A.
153. a. On or before July 1 of each fiscal year beginning on
16or after July 1, 2014, but before July 1, 2022, the assessor
17shall report to the county auditor the total actual value of
18all commercial property and industrial property in the county
19that is subject to assessment and taxation for the assessment
20year used to calculate the taxes due and payable in that fiscal
21year.
22b. On or before July 1, 2022, the department of management
23shall calculate and report to the department of revenue for
24each taxing authority in this state that is a city or a county
25all of the following:
26(1) The total assessed value as of January 1, 2012, of
27all taxable property located in the taxing authority that is
28subject to assessment and taxation used to calculate taxes
29which are due and payable in the fiscal year beginning July 1,
302013, excluding property subject to the statewide property tax
31imposed under section 437A.18 or 437B.14.
32(2) The total assessed value as of January 1, 2019, of
33all taxable property located in the taxing authority that is
34subject to assessment and taxation used to calculate taxes
35which are due and payable in the fiscal year beginning July 1,
-20-12020, excluding property subject to the statewide property tax
2imposed under section 437A.18 or 437B.14.
3 Sec. 33. Section 441.21A, subsection 4, unnumbered
4paragraph 1, Code 2021, is amended to read as follows:
5On or before a date established by rule of the department
6of revenue of each fiscal year beginning on or after July
71, 2014, but before July 1, 2022, the county auditor shall
8prepare a statement, based upon the report received pursuant to
9subsection 3, paragraph “a”, listing for each taxing district
10in the county:
11 Sec. 34. Section 441.21A, Code 2021, is amended by adding
12the following new subsection:
13 NEW SUBSECTION. 4A. a. As used in this subsection, unless
14the context clearly requires otherwise:
15(1) “Qualified taxing authority” means any of the following:
16(a) A taxing authority that is not a city or a county.
17(b) A taxing authority that is a city or county for which
18the amount determined under subsection 3, paragraph “b”,
19subparagraph (2), is less than one hundred thirty-one and
20twenty-four hundredths percent of the amount determined under
21subsection 3, paragraph “b”, subparagraph (1).
22(2) “Taxing authority” means a city, county, community
23college, or other governmental entity or political subdivision
24in this state authorized to certify a levy on property located
25within such authority, but does not include a school district.
26b. For fiscal years beginning on or after July 1, 2022,
27but before July 1, 2027, the amount of each taxing authority’s
28replacement claim is as follows:
29(1) If the taxing authority is a qualified taxing authority:
30(a) For the fiscal year beginning July 1, 2022, five-sixths
31of the amount received by the taxing authority under this
32section for the fiscal year beginning July 1, 2021.
33(b) For the fiscal year beginning July 1, 2023, four-sixths
34of the amount received by the taxing authority under this
35section for the fiscal year beginning July 1, 2021.
-21- 1(c) For the fiscal year beginning July 1, 2024, three-sixths
2of the amount received by the taxing authority under this
3section for the fiscal year beginning July 1, 2021.
4(d) For the fiscal year beginning July 1, 2025, two-sixths
5of the amount received by the taxing authority under this
6section for the fiscal year beginning July 1, 2021.
7(e) For the fiscal year beginning July 1, 2026, one-sixth of
8the amount received by the taxing authority under this section
9for the fiscal year beginning July 1, 2021.
10(2) If the taxing authority is not a qualified taxing
11authority:
12(a) For the fiscal year beginning July 1, 2022,
13three-fourths of the amount received by the taxing authority
14under this section for the fiscal year beginning July 1, 2021.
15(b) For the fiscal year beginning July 1, 2023, two-fourths
16of the amount received by the taxing authority under this
17section for the fiscal year beginning July 1, 2021.
18(c) For the fiscal year beginning July 1, 2024, one-fourth
19of the amount received by the taxing authority under this
20section for the fiscal year beginning July 1, 2021.
21(d) For the fiscal year beginning July 1, 2025, and each
22succeeding fiscal year beginning before July 1, 2027, zero.
23(3) The department of management shall calculate and report
24to the department of revenue the amount received by each
25taxing authority in this state as the result of commercial and
26industrial property tax replacement claims paid for the fiscal
27year beginning July 1, 2021, and the portion of the amount
28attributable to each county where the taxing authority is
29located, if applicable.
30 Sec. 35. Section 441.21A, subsection 5, Code 2021, is
31amended to read as follows:
325. For purposes of computing replacement amounts under
33this section for fiscal years beginning on or after July 1,
342014, but before July 1, 2022, that portion of an urban renewal
35area defined as the sum of the assessed valuations defined in
-22-1section 403.19, subsections 1 and 2, shall be considered a
2taxing district.
3 Sec. 36. Section 441.21A, subsection 6, paragraph a, Code
42021, is amended to read as follows:
5a. The For fiscal years beginning on or after July 1, 2014,
6but before July 1, 2022, the county auditor shall certify
7and forward one copy of the statement to the department of
8revenue not later than a date of each year established by the
9department of revenue by rule.
10 Sec. 37. Section 441.21A, subsection 6, Code 2021, is
11amended by adding the following new paragraph:
12 NEW PARAGRAPH. f. This subsection shall apply to the
13apportionment of replacement claim amounts for fiscal years
14beginning on or after July 1, 2014, but before July 1, 2022.
15 Sec. 38. Section 441.21A, Code 2021, is amended by adding
16the following new subsections:
17 NEW SUBSECTION. 7. a. For fiscal years beginning on
18or after July 1, 2022, but before July 1, 2027, each taxing
19authority’s replacement claim calculated under subsection 4A,
20or portion thereof, shall be paid to the appropriate county
21treasurer, as provided in subsection 2, paragraph “b”, in equal
22installments in September and March of each year.
23b. After payment by the county treasurer to the taxing
24authority, the taxing authority’s replacement claim shall be
25apportioned and credited by the governing body of the taxing
26authority among the taxing authority’s tax levies in the same
27proportion that each property tax levy bears to the total of
28all property tax levies imposed by the taxing authority for the
29fiscal year for which the payment is received.
30c. Of the amounts allocated and credited to each property
31tax levy that is subject to division under section 403.19,
32the total amount paid into the fund for the taxing authority
33as taxes by or for the taxing authority into which all other
34property taxes are paid and the special fund of the applicable
35municipality under section 403.19, subsection 2, shall be an
-23-1amount of the replacement claim that is proportionate to the
2amount of the total sum of the assessed value of the taxable
3commercial and industrial property in the urban renewal area as
4a share of total assessed value of all taxable property in the
5taxing authority and shall be apportioned as follows:
6(1) To the fund for the taxing authority as taxes by or for
7the taxing authority into which all other property taxes are
8paid, an amount proportionate to the amount of actual value of
9the commercial and industrial property in the urban renewal
10area as determined in section 403.19, subsection 1, that was
11subtracted pursuant to section 403.20, as it bears to the
12total amount of actual value of the commercial and industrial
13property in the urban renewal area that was subtracted pursuant
14to section 403.20 for the assessment year for property taxes
15due and payable in the fiscal year for which the replacement
16claim is computed.
17(2) (a) To the special fund of the applicable municipality
18under section 403.19, subsection 2, the remaining amount, if
19any.
20(b) The amount allocated under subparagraph division (a)
21shall not exceed the amount equal to the amount certified to
22the county auditor under section 403.19 for the fiscal year in
23which the claim is paid, after deduction of the amount of other
24revenues committed for payment on that amount for the fiscal
25year. The amount not allocated as a result of the operation of
26this subparagraph division (b) shall be allocated to and paid
27into the fund for the taxing authority as taxes by or for the
28taxing authority in the manner provided in subparagraph (1).
29 NEW SUBSECTION. 8. This section is repealed July 1, 2027.
30 Sec. 39. EFFECTIVE DATE. The following take effect July 1,
312027:
321. The section of this division of this Act amending section
33331.512.
342. The section of this division of this Act amending section
35331.559.
-24-1DIVISION III
2SCHOOL FOUNDATION PERCENTAGE
3 Sec. 40. Section 257.1, subsection 2, paragraph b, Code
42021, is amended to read as follows:
5b. For the budget year commencing July 1, 1999, and for
6each succeeding budget year beginning before July 1, 2022,
7 the regular program foundation base per pupil is eighty-seven
8and five-tenths percent of the regular program state cost per
9pupil. For the budget year commencing July 1, 2022, and for
10each succeeding budget year, the regular program foundation
11base per pupil is eighty-eight and four-tenths percent of the
12regular program state cost per pupil. For the budget year
13commencing July 1, 1991, and for each succeeding budget year
14the special education support services foundation base is
15seventy-nine percent of the special education support services
16state cost per pupil. The combined foundation base is the sum
17of the regular program foundation base, the special education
18support services foundation base, the total teacher salary
19supplement district cost, the total professional development
20supplement district cost, the total early intervention
21supplement district cost, the total teacher leadership
22supplement district cost, the total area education agency
23teacher salary supplement district cost, and the total area
24education agency professional development supplement district
25cost.
26 Sec. 41. Section 257.3, subsection 1, paragraph d, Code
272021, is amended by striking the paragraph.
28 Sec. 42. EFFECTIVE DATE. The section of this division of
29this Act amending section 257.3, subsection 1, paragraph “d”,
30takes effect July 1, 2022.
31DIVISION IV
32PUBLIC EDUCATION AND RECREATION TAX LEVY
33 Sec. 43. Section 276.10, subsection 1, Code 2021, is amended
34to read as follows:
351. The board of directors of a local school district
-25-1may establish a community education program for schools in
2the district and provide for the general supervision of the
3program. Financial support for the program shall may be
4provided from funds raised pursuant to chapter 300 received by
5the school district under chapter 423F and from any private
6funds and any federal funds made available for the purpose of
7implementing this chapter. The program which recognizes that
8the schools belong to the people and which shall be centered
9in the schools may include but shall not be limited to the use
10of the school facilities day and night, year round including
11weekends and regular school vacation periods for educational,
12recreational, cultural, and other community services and
13programs for all age, ethnic, and socioeconomic groups residing
14in the community.
15 Sec. 44. Section 278.1, subsection 1, paragraph e, Code
162021, is amended to read as follows:
17e. Direct the transfer of any surplus in the debt service
18fund, physical plant and equipment levy fund, or other capital
19project funds, or public education and recreation levy fund to
20the general fund.
21 Sec. 45. Section 298A.6, Code 2021, is amended to read as
22follows:
23298A.6 Public education and recreation levy fund.
24The public education and recreation levy fund is a special
25revenue fund. A public education and recreation levy fund
26must be established in any school corporation which levies
27 levied the tax authorized under section 300.2, Code 2021, or
28which receives received revenue from a chapter 28E agreement
29authorized under section 300.1, Code 2021. Moneys available in
30the fund at the conclusion of the fiscal year beginning July 1,
312023, and ending June 30, 2024, shall be expended by the school
32corporation for the purposes authorized under chapter 300, Code
332021.
34 Sec. 46. Section 300.2, Code 2021, is amended by adding the
35following new subsection:
-26-1 NEW SUBSECTION. 4. a. A levy under this chapter shall not
2be approved by the voters on or after the effective date of
3this division of this Act.
4b. If the levy has not been discontinued under section
5300.3, the authorization to impose the levy under this chapter
6shall terminate July 1, 2024.
7c. Notwithstanding subsection 2, including a proposition
8approved at an election held before the effective date of this
9division of this Act, the rate of a levy imposed by a board of
10directors under this chapter for the fiscal year beginning July
111, 2023, shall not exceed one-half of the levy rate imposed by
12the board of directors for the fiscal year beginning July 1,
132022.
14 Sec. 47. Section 423F.3, subsection 1, paragraph c, Code
152021, is amended by striking the paragraph.
16 Sec. 48. Section 423F.5, subsection 1, Code 2021, is amended
17to read as follows:
181. A school district shall include as part of its financial
19audit for the budget year beginning July 1, 2007, and for
20each subsequent budget year the amount received during the
21year pursuant to chapter 423E or this chapter, as applicable.
22In addition, the financial audit shall include the amount
23of bond levies, and physical plant and equipment levy, and
24public educational and recreational levy reduced as a result
25of the moneys received under chapter 423E or this chapter,
26as applicable. The amount of the reductions shall be stated
27in terms of dollars and cents per one thousand dollars of
28valuation and in total amount of property tax dollars. Also
29included shall be an accounting of the amount of moneys
30received which were spent for infrastructure purposes pursuant
31to chapter 423E or this chapter, as applicable.
32 Sec. 49. REPEAL. Sections 276.11 and 276.12, Code 2021,
33are repealed.
34 Sec. 50. REPEAL. Chapter 300, Code 2021, is repealed.
35 Sec. 51. EFFECTIVE DATE. Except as otherwise provided in
-27-1this division of this Act, this division of this Act takes
2effect July 1, 2024.
3 Sec. 52. EFFECTIVE DATE. The following, being deemed of
4immediate importance, takes effect upon enactment:
5The section of this division of this Act enacting section
6300.2, subsection 4.
7 Sec. 53. APPLICABILITY. Except for the section of this
8division of this Act enacting section 300.2, subsection 4, this
9division of this Act applies to fiscal years beginning on or
10after July 1, 2024.
11DIVISION V
12ELDERLY PROPERTY TAX CREDIT
13 Sec. 54. Section 25B.7, subsection 2, paragraph b, Code
142021, is amended to read as follows:
15b. Low-income property tax credit and elderly and disabled
16property tax credit pursuant to sections 425.16 through 425.40,
17subject to the limitation of 41, paragraph “b”.
18 Sec. 55. Section 425.17, subsection 2, Code 2021, is amended
19to read as follows:
202. a. “Claimant” means either any of the following:
21(1) A person filing a claim for credit or reimbursement
22 under this subchapter who has attained the age of sixty-five
23years but who has not attained the age of seventy years on
24or before December 31 of the base year or, a person filing a
25claim for credit or reimbursement under this subchapter who
26is totally disabled and was totally disabled on or before
27December 31 of the base year, or a person filing a claim for
28reimbursement under this subchapter who has attained the age of
29sixty-five years on or before December 31 of the base year and
30who is domiciled in this state at the time the claim is filed or
31at the time of the person’s death in the case of a claim filed
32by the executor or administrator of the claimant’s estate.
33(2) A person filing a claim for credit or reimbursement
34under this subchapter who has attained the age of twenty-three
35years on or before December 31 of the base year or was a head
-28-1of household on December 31 of the base year, as defined in
2the Internal Revenue Code, but has not attained the age or
3disability status described in this paragraph “a”, subparagraph
4(1) or the age status and eligibility criteria of subparagraph
5(3), and is domiciled in this state at the time the claim is
6filed or at the time of the person’s death in the case of a
7claim filed by the executor or administrator of the claimant’s
8estate, and was not claimed as a dependent on any other
9person’s tax return for the base year.
10(3) A person filing a claim for credit under this subchapter
11who has attained the age of seventy years on or before December
1231 of the base year, who has a household income of less than
13two hundred fifty percent of the federal poverty level, as
14defined by the most recently revised poverty income guidelines
15published by the United States department of health and human
16services, and is domiciled in this state at the time the claim
17is filed or at the time of the person’s death in the case of a
18claim filed by the executor or administrator of the claimant’s
19estate.
20b. “Claimant” under paragraph “a”, subparagraph (1) or(2),
21 includes a vendee in possession under a contract for deed and
22may include one or more joint tenants or tenants in common.
23In the case of a claim for rent constituting property taxes
24paid, the claimant shall have rented the property during any
25part of the base year. In the case of a claim for property
26taxes due, the claimant shall have occupied the property during
27any part of the fiscal year beginning July 1 of the base year.
28If a homestead is occupied by two or more persons, and more
29than one person is able to qualify as a claimant, the persons
30may each file a claim based upon each person’s income and rent
31constituting property taxes paid or property taxes due.
32 Sec. 56. Section 425.23, subsection 1, paragraph a,
33unnumbered paragraph 1, Code 2021, is amended to read as
34follows:
35The tentative credit or reimbursement for a claimant
-29-1described in section 425.17, subsection 2, paragraph “a”,
2subparagraphs subparagraph (1) and (2), if no appropriation is
3made to the fund created in section 425.40 shall be determined
4in accordance with the following schedule:
5 Sec. 57. Section 425.23, subsection 1, Code 2021, is amended
6by adding the following new paragraph:
7 NEW PARAGRAPH. c. The tentative credit for a claimant
8described in section 425.17, subsection 2, paragraph “a”,
9subparagraph (3), shall be the greater of the following:
10(1) The amount of the credit under the schedule specified
11in paragraph “a” of this subsection as if the claimant was a
12claimant as defined in section 425.17, subsection 2, paragraph
13“a”, subparagraph (1), filing for a credit under paragraph “a”
14of this subsection.
15(2) The difference between the actual amount of property
16taxes due on the homestead during the fiscal year next
17following the base year minus the actual amount of property
18taxes due on the homestead during the first fiscal year for
19which the claimant filed a claim for a credit calculated under
20this paragraph “c” and for which the property taxes due on the
21homestead were calculated on an assessed valuation that was
22not a partial assessment and if the claimant has filed for the
23credit calculated under this paragraph “c” for each of the
24subsequent fiscal years after the first credit claimed.
25 Sec. 58. Section 425.23, subsection 4, paragraph a, Code
262021, is amended to read as follows:
27a. For the base year beginning in the 1999 calendar year
28and for each subsequent base year, the dollar amounts set
29forth in subsections subsection 1, paragraphs “a” and “b”, and
30subsection 3 shall be multiplied by the cumulative adjustment
31factor for that base year. “Cumulative adjustment factor” means
32the product of the annual adjustment factor for the 1998 base
33year and all annual adjustment factors for subsequent base
34years. The cumulative adjustment factor applies to the base
35year beginning in the calendar year for which the latest annual
-30-1adjustment factor has been determined.
2 Sec. 59. Section 425.24, Code 2021, is amended to read as
3follows:
4425.24 Maximum property tax for purpose of credit or
5reimbursement.
6In For claimants under section 425.17, subsection 2,
7paragraph “a”, subparagraphs (1) and (2), and for the
8calculation under section 425.23, subsection 1, paragraph “c”,
9subparagraph (1), in any case in which property taxes due or
10rent constituting property taxes paid for any household exceeds
11one thousand dollars, the amount of property taxes due or rent
12constituting property taxes paid shall be deemed to have been
13one thousand dollars for purposes of this subchapter.
14 Sec. 60. Section 425.39, subsection 1, as amended by 2021
15Iowa Acts, House File 368, section 33, is amended to read as
16follows:
171. a. The elderly and disabled property tax credit fund is
18created. There is appropriated annually from the general fund
19of the state to the department of revenue to be credited to the
20elderly and disabled property tax credit fund, from funds not
21otherwise appropriated, an amount sufficient to implement this
22subchapter for credits for property taxes due for claimants
23described in section 425.17, subsection 2, paragraph “a”,
24subparagraph subparagraphs (1) and (3), subject to paragraph
25“b”.
26b. Regardless of the amount of the credit determined under
27section 425.23, subsection 1, paragraph “c”, the amount paid by
28the director of revenue to each county treasurer for credits
29for claimants described under section 425.17, subsection 2,
30paragraph “a”, subparagraph (3), shall not exceed the amount
31calculated for the claimant under section 425.23, subsection 1,
32paragraph “c”, subparagraph (1), and section 25B.7, subsection
331, shall not apply to the amount of the credit in excess of the
34amount paid by the director of revenue.
35 Sec. 61. APPLICABILITY. This division of this Act applies
-31-1to claims under chapter 425, subchapter II, filed on or after
2January 1, 2022.
3DIVISION VI
4FUTURE TAX CHANGES
5 Sec. 62. 2018 Iowa Acts, chapter 1161, section 133, is
6amended by striking the section and inserting in lieu thereof
7the following:
8SEC. 133. EFFECTIVE DATE. This division of this Act takes
9effect January 1, 2023.
10DIVISION VII
11charitable conservation contribution tax credit
12 Sec. 63. Section 2.48, subsection 3, paragraph e,
13subparagraph (6), Code 2021, is amended by striking the
14subparagraph.
15 Sec. 64. Section 422.33, subsection 25, Code 2021, is
16amended by striking the subsection.
17 Sec. 65. REPEAL. Section 422.11W, Code 2021, is repealed.
18 Sec. 66. APPLICABILITY. This division of this Act applies
19to conveyances made on or after July 1, 2021.
20DIVISION VIII
21forest reservations
22 Sec. 67. Section 427C.1, Code 2021, is amended to read as
23follows:
24427C.1 Tax exemption.
251. Any person who establishes a forest or The owner of a
26 fruit-tree reservation as provided in this chapter shall be
27entitled to the tax exemption provided by law.
282. a. The owner of a forest reservation as provided in this
29chapter shall be entitled to the tax exemption provided by law
30for assessment years beginning on or after January 1, 2022,
31if, subject to the schedule for reapplication adopted under
32subsection 3, the owner is actively engaged in the operation or
33management of the forest reservation.
34b. The natural resource commission shall adopt rules
35pursuant to chapter 17A to interpret the requirement of
-32-1paragraph “a” that the owner of a forest reservation be
2actively engaged in the operation or management of the forest
3reservation, including but not limited to standards for
4wildlife control practices, invasive species control measures,
5conservation measures, and forest practices. The minimum
6requirements for being considered actively engaged in the
7operation or management of the forest reservation established
8by the natural resource commission shall be based on the
9conservation goals for the property as stated by the owner
10in the exemption application, the use of the property by the
11owner, and the characteristics of the property, including the
12pervasiveness of wildlife populations and invasive species
13populations on the property and the impact of such populations
14on the forest reservation and surrounding properties.
15c. (1) For each forest reservation application filed after
16February 1, 2021, but on or before February 1, 2022, the owner
17must file by February 1, 2022, with the department of natural
18resources, evidence that the owner meets the requirement for
19active engagement in the operation or management of the forest
20reservation.
21(2) The department of natural resources shall prepare and
22make available a form to assist owners in complying with the
23requirement of subparagraph (1).
243. The department of revenue, in consultation with the
25department of natural resources, shall by rule establish five
26regions within the state. Forest reservation exemptions
27for which the application was filed on or before February
281, 2021, shall terminate as provided in this subsection
29and the owners of such forest reservations must reapply for
30the exemption under this chapter. In order to efficiently
31process applications, the five regions shall be established
32to include approximately an equal number of acres of forest
33reservations in each region. For forest reservations subject
34to this subsection, the requirement for the owner to be
35actively engaged in the operation or management of the forest
-33-1reservation shall not apply until the owner reapplies for the
2forest reservation exemption.
3a. Exemptions for forest reservations in the first region
4shall end at the conclusion of the assessment year beginning
5January 1, 2021, and in order to continue receiving the
6exemption for the five-year period specified in section 427C.3,
7beginning with the assessment year beginning January 1, 2022,
8each owner must reapply on or before February 1, 2022.
9b. Exemptions for forest reservations in the second region
10shall end at the conclusion of the assessment year beginning
11January 1, 2022, and in order to continue receiving the
12exemption for the five-year period specified in section 427C.3,
13beginning with the assessment year beginning January 1, 2023,
14each owner must reapply on or before February 1, 2023.
15c. Exemptions for forest reservations in the third region
16shall end at the conclusion of the assessment year beginning
17January 1, 2023, and in order to continue receiving the
18exemption for the five-year period specified in section 427C.3,
19beginning with the assessment year beginning January 1, 2024,
20each owner must reapply on or before February 1, 2024.
21d. Exemptions for forest reservations in the fourth region
22shall end at the conclusion of the assessment year beginning
23January 1, 2024, and in order to continue receiving the
24exemption for the five-year period specified in section 427C.3,
25beginning with the assessment year beginning January 1, 2025,
26each owner must reapply on or before February 1, 2025.
27e. Exemptions for forest reservations in the fifth region
28shall end at the conclusion of the assessment year beginning
29January 1, 2025, and in order to continue receiving the
30exemption for the five-year period specified in section 427C.3,
31beginning with the assessment year beginning January 1, 2026,
32each owner must reapply on or before February 1, 2026.
33 Sec. 68. Section 427C.3, Code 2021, is amended to read as
34follows:
35427C.3 Forest reservation — duration of exemption.
-34- 11. A forest reservation shall contain not less than two
2hundred growing forest trees on each acre. If the area
3selected is a forest containing the required number of growing
4forest trees, it shall be accepted as a forest reservation
5under this chapter for a period of five years provided
6application is made or on file on or before February 1 of the
7exemption year. If any buildings are standing on an area
8selected as a forest reservation under this section or a
9fruit-tree reservation under section 427C.7, one acre of that
10area shall be excluded from the tax exemption. However, the
11exclusion of that acre shall not affect the area’s meeting the
12acreage requirement of section 427C.2.
132. For forest reservation exemption applications filed on
14or after February 2, 2021, but on or before February 1, 2022,
15the five-year period provided under subsection 1 begins with
16the assessment year beginning January 1, 2022, unless the owner
17fails to satisfy the requirement of section 427C.1, subsection
182, paragraph “c”.
19 Sec. 69. Section 427C.7, Code 2021, is amended to read as
20follows:
21427C.7 Fruit-tree reservation — duration of exemption.
22A fruit-tree reservation shall contain on each acre,
23at least forty apple trees, or seventy other fruit trees,
24growing under proper care and annually pruned and sprayed.
25A reservation may be claimed as a fruit-tree reservation,
26under this chapter, for a period of eight years after planting
27provided application is made or on file on or before February
281 of the exemption year. If any buildings are standing on an
29area selected as a fruit-tree reservation under this section,
30one acre of that area shall be excluded from the tax exemption.
31However, the exclusion of that acre shall not affect the area’s
32meeting the acreage requirement of section 427C.2.
33 Sec. 70. Section 427C.10, Code 2021, is amended to read as
34follows:
35427C.10 Restraint of livestock and limitation on use.
-35- 11. Cattle, horses, mules, sheep, goats, ostriches, rheas,
2emus, and swine shall not be permitted upon a fruit-tree or
3forest forest or fruit-tree reservation.
42. a. Fruit-tree and forest Forest and fruit-tree
5 reservations shall not be used for economic gain other than the
6gain from raising fruit or forest trees.
7b. The prohibition under paragraph “a” includes but is not
8limited to leases or charges for persons who enter or go on the
9reservation for the recreational use thereof or for hunting.
10 Sec. 71. Section 427C.12, Code 2021, is amended to read as
11follows:
12427C.12 Application — inspection — continuation of
13exemption — recapture of tax.
141. It shall be the duty of the assessor to secure the facts
15relative to fruit-tree and forest reservations by taking the
16sworn statement, or affirmation, of the owner or owners making
17application under this chapter; and to make special report to
18the county auditor of all reservations made in the county under
19the provisions of this chapter.
202. a. The board of supervisors shall designate the county
21conservation board or the assessor who shall inspect the area
22for which an application is filed for a fruit-tree or forest
23 reservation tax exemption before the application is accepted.
24b. The department of natural resources shall review the
25application for a forest reservation tax exemption before the
26application is accepted.
27c. Use of The department of natural resources shall use
28 aerial photographs may be substituted for on-site inspection
29when appropriate provided by the county assessor to determine
30if the application meets the criteria established by the
31natural resource commission to be a forest reservation.
323. The application can only be accepted if it meets the
33criteria established by the natural resource commission to
34be a fruit-tree or forest reservation department of natural
35resources may conduct an on-site review if necessary to verify
-36-1the eligibility of a forest reservation application.
24. Once the application has been accepted, the area shall
3continue to receive the tax exemption during each year of the
4applicable exemption period under section 427C.3 or 427C.7
5 in which the area is maintained as a fruit-tree or forest or
6fruit-tree reservation without the owner having to refile. If
7the property is sold or transferred, the seller shall notify
8the buyer that all, or part of, the property is in fruit-tree
9or forest reservation and subject to the recapture tax
10provisions of this section. The tax exemption shall continue
11to be granted for the remainder of the eight-year exemption
12 period for fruit-tree reservation and for the following years
13for forest reservation under section 427C.3 or 427C.7, or until
14the property no longer qualifies as a fruit-tree or forest or
15fruit-tree reservation.
165. a. The An area that is a fruit-tree reservation may
17be inspected each year by the county conservation board or
18the assessor to determine if the area is maintained as a
19fruit-tree or forest reservation. An area that is a forest
20reservation may be inspected each year by the department of
21natural resources to determine if the area is maintained as
22forest reservation. If the area is not maintained or is used
23for economic gain other than as a fruit-tree reservation during
24any year of the eight-year exemption period and any year of
25the following five years following the exemption period, if
26the property is no longer receiving an exemption under this
27chapter, or as a forest reservation during any year for which
28 of the exemption is granted period and any of the five years
29following those exemption years the exemption period, if
30the property is no longer receiving an exemption under this
31chapter, the assessor shall assess the property for taxation
32at its fair market value as of January 1 of that year and
33in addition the area shall be subject to a recapture tax.
34However, the area shall not be subject to the recapture tax if
35the owner, including one possessing under a contract of sale,
-37-1and the owner’s direct antecedents or descendants have owned
2the area for more than ten years.
3b. The recapture tax shall be computed by multiplying the
4consolidated levy for each of those years, if any, of the five
5preceding years for which the area received the exemption for
6fruit-tree or forest reservation times the assessed value of
7the area that would have been taxed but for the tax exemption.
8This tax shall be entered against the property on the tax list
9for the current year and shall constitute a lien against the
10property in the same manner as a lien for property taxes. The
11tax when collected shall be apportioned in the manner provided
12for the apportionment of the property taxes for the applicable
13tax year.
146. Upon expiration of the applicable exemption period, the
15owner of a forest or fruit-tree reservation may reapply for
16an exemption under this chapter if the property meets all the
17criteria for the exemption under this chapter.
18 Sec. 72. Section 441.22, Code 2021, is amended to read as
19follows:
20441.22 Forest and fruit-tree reservations.
21Forest and fruit-tree reservations fulfilling the conditions
22of sections 427C.1 to 427C.13 chapter 427C shall be exempt from
23taxation to the extent authorized in that chapter. In all
24other cases where trees are planted upon any tract of land,
25without regard to area, for forest, fruit, shade, or ornamental
26purposes, or for windbreaks, the assessor shall not increase
27the valuation of the property because of such improvements.
28 Sec. 73. SAVINGS PROVISION. This division of this Act,
29pursuant to section 4.13, does not affect the operation of,
30or prohibit the application of, prior provisions of chapter
31427C or section 441.22, or rules adopted under chapter 17A to
32administer prior provisions of chapter 427C or section 441.22,
33for assessment years beginning before January 1, 2022, and for
34duties, powers, protests, appeals, proceedings, actions, or
35remedies attributable to an assessment year beginning before
-38-1January 1, 2022.
2 Sec. 74. EFFECTIVE DATE. This division of this Act, being
3deemed of immediate importance, takes effect upon enactment.
4 Sec. 75. APPLICABILITY. This division of this Act applies
5to assessment years beginning on or after January 1, 2022.
6DIVISION IX
7TRANSIT FUNDING
8 Sec. 76. Section 28M.3, subsection 1, Code 2021, is amended
9to read as follows:
101. A regional transit district shall have all the rights,
11powers, and duties of a county enterprise pursuant to sections
12331.462 through 331.469 as they relate to the purpose for
13which the regional transit district is created, including
14the authority to issue revenue bonds for the establishment,
15construction, reconstruction, repair, equipping, remodeling,
16extension, maintenance, and operation of works, vehicles, and
17facilities of a regional transit district. In addition, a
18regional transit district, with the approval of the board of
19supervisors, may issue general obligation bonds as an essential
20county purpose pursuant to chapter 331, subchapter IV, part 3,
21for the establishment, construction, reconstruction, repair,
22equipping, remodeling, extension, maintenance, and operation of
23works, vehicles, and facilities of a regional transit district.
24Such general obligation bonds are payable from the property tax
25levy authorized in section 28M.5 and from the transit hotel and
26motel tax imposed under section 423A.4, subsection 1, paragraph
27“b”, if applicable.
28 Sec. 77. Section 28M.4, subsection 3, Code 2021, is amended
29to read as follows:
303. A commission shall adopt and certify an annual budget
31for the regional transit district. A commission in its budget
32shall allocate the revenue responsibilities of each county and
33city participating in the regional transit district, subject
34to reductions in the maximum authorized property tax levy
35rate under section 28M.5, if applicable. A commission shall
-39-1be considered a municipality for purposes of adopting and
2certifying a budget pursuant to chapter 24.
3 Sec. 78. Section 28M.4, Code 2021, is amended by adding the
4following new subsection:
5 NEW SUBSECTION. 4A. A commission may, following approval at
6election, impose a transit hotel and motel tax under section
7423A.4, subsection 1, paragraph “b”.
8 Sec. 79. Section 28M.4, subsections 5 and 6, Code 2021, are
9amended to read as follows:
105. A commission shall levy for the tax under section 28M.5
11 and shall control any tax revenues paid to the regional transit
12district the commission administers and, including all moneys
13derived from the operation of the regional transit district,
14a transit hotel and motel tax imposed under section 423A.4,
15subsection 1, paragraph “b”, the sale of its the district’s
16 property, interest on investments, or from any other source
17related to the regional transit district.
186. Tax revenues collected from a regional transit district
19levy or a transit hotel and motel tax under section 423A.4,
20subsection 1, paragraph “b”, shall be held by the county
21treasurer. Before the fifteenth day of each month, the county
22treasurer shall send the amount collected for each fund through
23the last day of the preceding month for direct deposit into
24the depository and account designated by the commission. The
25county treasurer shall send a notice to the secretary of the
26commission or the secretary’s designee stating the amount
27deposited, the date, the amount to be credited to each fund
28according to the budget, and the source of the revenue.
29 Sec. 80. Section 28M.5, subsections 1 and 4, Code 2021, are
30amended to read as follows:
311. a. The commission, with the approval of the board of
32supervisors of participating counties and the city council of
33participating cities in the chapter 28E agreement, may, subject
34to the reductions required under paragraph “b”, levy annually a
35tax not to exceed ninety-five cents per thousand dollars of the
-40-1assessed value of all taxable property in a regional transit
2district to the extent provided in this section. The chapter
328E agreement may authorize the commission to levy the tax at
4different rates within the participating cities and counties in
5amounts sufficient to meet the revenue responsibilities of such
6cities and counties as allocated in the budget adopted by the
7commission. However, for a city participating in a regional
8transit district, the total of all the tax levies imposed in
9the city pursuant to section 384.12, subsection 10, and this
10section shall not exceed the aggregate of ninety-five cents per
11thousand dollars of the assessed value of all taxable property
12in the participating city or the levy rate determined under
13paragraph “b”, whichever is less.
14b. (1) If a regional transit district imposes a transit
15hotel and motel tax under section 423A.4, subsection 1,
16paragraph “b”, the maximum levy rate authorized under this
17section shall be reduced as provided in this paragraph. For
18each fiscal year beginning on or after July 1 following the
19first calendar year for which the transit hotel and motel
20tax is imposed in the regional transit district, and until
21subparagraph (4) applies, the levy rate imposed under this
22section shall not exceed a rate equal to the rate that would
23be required for the fiscal year beginning July 1 following the
24election approving the transit hotel and motel tax to collect
25an amount equal to the property taxes collected by the regional
26transit district for the fiscal year beginning July 1 following
27the election approving the transit hotel and motel tax minus
28the amount of transit hotel and motel tax revenue received by
29the regional transit district for the first calendar year for
30which the transit hotel and motel tax is imposed.
31(2) If the regional transit district authorizes the
32commission to levy the tax at different rates within the
33participating cities and counties, as authorized under
34paragraph “a”, the levy rate reduction required under this
35paragraph shall be applied by the department of management
-41-1to each participating city and county based upon the revenue
2responsibilities of such cities and counties as provided in the
3chapter 28E agreement on the date the transit hotel and motel
4tax is approved at election.
5(3) If a regional transit district increases the rate of the
6transit hotel and motel tax, further reductions in the maximum
7authorized levy rate under this section shall be implemented
8in the same manner as provided under subparagraphs (1) and (2)
9for the reductions following initial imposition of the transit
10hotel and motel tax.
11(4) If the regional transit district repeals the transit
12hotel and motel tax, the maximum authorized levy rate shall be
13ninety-five cents per thousand dollars of the assessed value
14for fiscal years beginning after the date of termination under
15section 423A.4, unless the transit hotel and motel tax is
16reinstated.
174. The proceeds of the tax levy and other authorized
18revenues of the regional transit district shall be used for
19the operation and maintenance of a regional transit district,
20for payment of debt obligations of the district, and for the
21creation of a reserve fund. The commission may divide the
22territory of a regional transit district outside the boundaries
23of a city into separate service areas and impose a regional
24transit district levy not to exceed the maximum rate authorized
25by this section in each service area.
26 Sec. 81. Section 303.52, subsection 4, paragraph a, Code
272021, is amended to read as follows:
28a. The board of trustees may by ordinance impose a local
29 hotel and motel tax in accordance with chapter 423A.
30 Sec. 82. Section 331.402, subsection 2, paragraph f, Code
312021, is amended to read as follows:
32f. Impose a local hotel and motel tax in accordance with
33chapter 423A.
34 Sec. 83. Section 384.12, subsection 10, Code 2021, is
35amended to read as follows:
-42- 110. a. A tax for the operation and maintenance of a
2municipal transit system or for operation and maintenance of a
3regional transit district, and for the creation of a reserve
4fund for the system or district, in an amount not to exceed
5ninety-five cents per thousand dollars of assessed value
6each year or the levy rate determined under paragraph “b”,
7if applicable, when the revenues from the transit system or
8district are insufficient for such purposes.
9b. (1) If the city participates in a regional transit
10district under chapter 28M that imposes a transit hotel and
11motel tax under section 423A.4, the maximum levy rate shall be
12the levy rate determined under section 28M.5, subsection 1,
13paragraph “b”.
14(2) (a) If the city imposes a transit hotel and motel tax
15under section 423A.4, the maximum levy rate shall be reduced as
16provided in this subparagraph. For each fiscal year beginning
17on or after July 1 following the first calendar year for which
18the transit hotel and motel tax is imposed in the city, and
19until subparagraph division (c) applies, the levy rate imposed
20under this subsection shall not exceed a rate equal to the rate
21that would be required for the fiscal year beginning July 1
22following the election approving the transit hotel and motel
23tax to collect an amount equal to the property taxes collected
24by the city under this subsection for the fiscal year beginning
25July 1 following the election approving the transit hotel and
26motel tax minus the amount of transit hotel and motel tax
27revenue received by the city for the first calendar year for
28which the transit hotel and motel tax is imposed.
29(b) If a city increases the rate of the transit hotel and
30motel tax, further reductions in the maximum authorized levy
31rate under this subsection shall be implemented in the same
32manner as provided under subparagraph division (a) for the
33reduction following initial imposition of the transit hotel and
34motel tax.
35(c) If the city repeals the transit hotel and motel tax,
-43-1the maximum authorized levy rate shall be ninety-five cents
2per thousand dollars of the assessed value for fiscal years
3beginning after the date of termination under section 423A.4,
4unless the transit hotel and motel tax is reinstated.
5 Sec. 84. Section 423A.4, Code 2021, is amended to read as
6follows:
7423A.4 Locally imposed Local hotel and motel tax — transit
8hotel and motel tax.
91. a. A city, a county, or a land use district created
10under chapter 303, subchapter IV, may impose, by ordinance of
11the city council or by resolution of the board of supervisors
12or by ordinance of the board of trustees, a local hotel and
13motel tax, at a rate not to exceed seven percent, which shall
14be imposed in increments of one or more full percentage points
15upon the sales price from the renting of lodging. The tax
16when imposed by a city shall apply only within the corporate
17boundaries of that city, when imposed by a county shall apply
18only outside incorporated areas within that county, and when
19imposed by a land use district shall apply only within the
20corporate boundaries of that district. A local hotel and motel
21tax imposed by a city or county shall not be imposed within the
22corporate boundaries of a land use district during any period
23of time that the land use district is imposing a local hotel
24and motel tax.
25b. A regional transit district or a city that is not
26participating in a regional transit district may impose, by
27resolution of the regional transit district commission or by
28ordinance of the city council, a transit hotel and motel tax,
29at a rate not to exceed five percent, which shall be imposed
30in increments of one or more full percentage points upon the
31sales price from the renting of lodging. The tax when imposed
32by a regional transit district shall apply only within the
33boundaries of the regional transit district and may be imposed
34in addition to any tax imposed under paragraph “a”. The tax
35when imposed by a city shall apply only within the corporate
-44-1boundaries of that city and may be imposed in addition to any
2tax imposed under paragraph “a”.
32. Within ten days of the election at which a majority of
4those voting on the question favors the imposition, repeal,
5or change in the rate of the local hotel and motel tax or the
6transit hotel and motel tax, the county auditor shall give
7written notice by sending a copy of the abstract of votes from
8the favorable election to the director of revenue.
93. A local hotel and motel tax imposed by a city, county,
10or land use district shall be imposed on January 1 or July
111, following the notification of the director of revenue. A
12transit hotel and motel tax imposed by a regional transit
13district or a city shall be imposed on January 1, following the
14notification of the director of revenue. Once imposed, the tax
15shall remain in effect at the rate imposed for a minimum of
16one year. A local hotel and motel tax or a transit hotel and
17motel tax shall terminate only on June 30 or December 31. At
18least forty-five days prior to the tax being effective or prior
19to a revision in the tax rate or prior to the repeal of the
20tax, a city, county, or land use district, or regional transit
21district shall provide notice by mail of such action to the
22director of revenue. The director shall have the authority to
23waive the notice requirement.
244. a. A city, county, or land use district shall impose
25or repeal a hotel and motel tax or increase or reduce the
26tax rate only after an election at which a majority of those
27voting on the question favors imposition, repeal, or change
28in rate. A regional transit district or city shall impose or
29repeal a transit hotel and motel tax or increase or reduce the
30tax rate only after an election at which a majority of those
31voting on the question favors imposition, repeal, or change in
32rate. However, a local hotel and motel tax of a city or county
33shall not be repealed or reduced in rate if obligations are
34outstanding which are payable as provided in section 423A.7,
35unless funds sufficient to pay the principal, interest, and
-45-1premium, if any, on the outstanding obligations at and prior
2to maturity have been properly set aside and pledged for that
3purpose.
4b. (1) If the local hotel and motel tax applies only within
5the corporate boundaries of a city, only the registered voters
6of the city shall be permitted to vote. The election shall be
7held at the time of the regular city election or at a special
8election called for that purpose.
9(2) If the local hotel and motel tax applies only in the
10unincorporated areas of a county or only within the corporate
11boundaries of a land use district, only the registered voters
12of the unincorporated areas of the county or the registered
13voters of the land use district, as applicable, shall be
14permitted to vote. The election shall be held at the time of
15the general election or at a special election called for that
16purpose.
17(3) For a transit hotel and motel tax imposed by a regional
18transit district, only the registered voters of the regional
19transit district shall be permitted to vote. The election
20shall be held at the time of the general election or the
21regular city election.
22(4) For a transit hotel and motel tax imposed by a city,
23only the registered voters of the city shall be permitted to
24vote. The election shall be held at the time of the general
25election or the regular city election.
265. The locally imposed local hotel and motel tax and the
27transit hotel and motel tax shall be collected and remitted as
28provided in section 423A.5A.
29 Sec. 85. Section 423A.5A, subsection 3, Code 2021, is
30amended to read as follows:
313. Unless otherwise provided in this section, the
32state-imposed tax under section 423A.3 and any locally, the
33local hotel and motel tax imposed tax under section 423A.4, and
34the transit hotel and motel tax imposed under section 423A.4,
35 shall be collected by the lodging provider from the user of
-46-1that lodging and shall be remitted to the department. The
2lodging provider shall add the state-imposed tax to the sales
3price of the lodging and the tax, when collected, shall be
4stated as a distinct item, separate and apart from the sales
5price of the lodging and from the locally imposed tax taxes
6imposed under section 423A.4, if any. The lodging provider
7shall add the locally imposed each tax imposed under section
8423A.4, if any, to the sales price of the lodging and the tax,
9when collected, shall be stated as a distinct item, separate
10and apart from the sales price of the lodging, and from the
11state-imposed tax, and from the other taxes imposed under
12section 423A.4.
13 Sec. 86. Section 423A.6, subsections 1, 3, and 4, Code 2021,
14are amended to read as follows:
151. The director of revenue shall administer the state,
16 and local, and transit hotel and motel tax taxes as nearly as
17possible in conjunction with the administration of the state
18sales tax law, except that portion of the law which implements
19the streamlined sales and use tax agreement. The director
20shall provide appropriate forms, or provide on the regular
21state tax forms, for reporting state, and local, and transit
22 hotel and motel tax liability. All moneys received or refunded
23one hundred eighty days after the date on which a city, county,
24or land use district, or regional transit district, terminates
25its local hotel and motel tax or transit hotel and motel tax
26 and all moneys received from the state hotel and motel tax
27shall be deposited in or withdrawn from the general fund of the
28state.
293. The director, in consultation with local officials,
30shall collect and account for a local hotel and motel tax and a
31transit hotel and motel tax and shall credit all revenues to
32the local transient guest tax fund created in section 423A.7.
33Local authorities shall not require any tax permit not required
34by the director of revenue.
354. Section 422.25, subsection 4, sections 422.30, 422.67,
-47-1and 422.68, section 422.69, subsection 1, sections 422.70,
2422.71, 422.72, 422.74, and 422.75, section 423.14, subsection
31, and sections 423.23, 423.24, 423.25, 423.31, 423.33,
4423.35, 423.37 through 423.42, and 423.47, consistent with the
5provisions of this chapter, apply with respect to the taxes
6authorized under this chapter, in the same manner and with
7the same effect as if the state, and local, and transit hotel
8and motel taxes were retail sales taxes within the meaning of
9those statutes. Notwithstanding this subsection, the director
10shall provide for quarterly filing of returns and for other
11than quarterly filing of returns both as prescribed in section
12423.31. The director may require all persons who are engaged
13in the business of deriving any sales price subject to tax
14under this chapter to register with the department. All taxes
15collected under this chapter by a retailer, lodging provider,
16lodging facilitator, lodging platform, or any other person are
17deemed to be held in trust for the state of Iowa and the local
18jurisdictions imposing the taxes.
19 Sec. 87. Section 423A.7, subsections 2 and 3, Code 2021, are
20amended to read as follows:
212. All moneys in the local transient guest tax fund shall
22be remitted at least quarterly by the department, pursuant to
23rules of the director of revenue, to each city in the amount
24collected under section 423A.4, subsection 1, paragraph “a”,
25 from businesses in that city, to each county in the amount
26collected under section 423A.4, subsection 1, paragraph “a”,
27 from businesses in the unincorporated areas of the county, and
28 to each land use district in the amount collected under section
29423A.4, subsection 1, paragraph “a”, from businesses in that
30land use district, to each regional transit district in the
31amount collected under section 423A.4, subsection 1, paragraph
32“b”, from businesses within the boundaries of the regional
33transit district and to each city in the amount collected under
34section 423A.4, subsection 1, paragraph “b”, from businesses
35in that city.
-48- 13. Moneys received by the city from this fund collected
2under section 423A.4, subsection 1, paragraph “a”, shall be
3credited to the general fund of the city, subject to the
4provisions of subsection 4.
5 Sec. 88. Section 423A.7, Code 2021, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 6. a. The revenue derived by a regional
8transit district from the transit hotel and motel tax
9authorized by section 423A.4 shall be expended exclusively for
10the purposes of the regional transit district under chapter 28M
11and shall result in a reduction in the maximum levy rate for
12the regional transit district, as provided in section 28M.5,
13subsection 1, paragraph “b”. However, the amount of revenue
14derived by the regional transit district in the second calendar
15year that transit hotel and motel tax is imposed that exceeds
16the amount of revenue derived by the regional transit district
17in the first calendar year that transit hotel and motel tax
18is imposed shall be used for property tax relief for the levy
19under section 28M.5 in addition to the reduction to the levy
20rate as the result of the revenue derived in the first calendar
21year that the transit hotel and motel tax is imposed.
22b. The revenue derived by a city from the transit hotel
23and motel tax authorized by section 423A.4 shall be expended
24exclusively for the operation and maintenance of a municipal
25transit system and shall result in a reduction in the maximum
26levy rate for the city under section 384.12, subsection 10.
27However, the amount of revenue derived by the city in the
28second calendar year that transit hotel and motel tax is
29imposed that exceeds the amount of revenue derived by the
30city in the first calendar year that transit hotel and motel
31tax is imposed shall be used for property tax relief for the
32levy under section 384.12, subsection 10, in addition to the
33reduction to the levy rate as the result of the revenue derived
34in the first calendar year that the transit hotel and motel tax
35is imposed.
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