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House File 718 - IntroducedA Bill ForAn Act 1relating to local government funding by modifying school
2district funding provisions, property tax calculation
3provisions, local government budgeting and bonding
4procedures, and including effective date and applicability
5provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2School Foundation PROPERTY Tax
3 Section 1. Section 257.3, subsection 1, paragraph a, Code
42023, is amended to read as follows:
5a. Except as provided in subsections 2 and 3, a school
6district shall cause to be levied each year, for the school
7general fund, a foundation property tax equal to five four
8 dollars and forty cents per thousand dollars of assessed
9valuation on all taxable property in the district. The county
10auditor shall spread the foundation levy over all taxable
11property in the district.
12 Sec. 2. Section 257.3, subsection 2, paragraphs a and b,
13Code 2023, are amended to read as follows:
14a. Notwithstanding subsection 1, a reorganized school
15district shall cause a foundation property tax of four three
16 dollars and forty cents per thousand dollars of assessed
17valuation to be levied on all taxable property which, in the
18year preceding a reorganization, was within a school district
19affected by the reorganization as defined in section 275.1,
20or in the year preceding a dissolution was a part of a school
21district that dissolved if the dissolution proposal has
22been approved by the director of the department of education
23pursuant to section 275.55.
24b. In succeeding school years, the foundation property tax
25levy on that portion shall be increased to the rate of four
26 three dollars and ninety cents per thousand dollars of assessed
27valuation the first succeeding year, five four dollars and
28fifteen cents per thousand dollars of assessed valuation the
29second succeeding year, and five four dollars and forty cents
30per thousand dollars of assessed valuation the third succeeding
31year and each year thereafter.
32 Sec. 3. Section 425A.3, subsection 1, Code 2023, is amended
33to read as follows:
341. The family farm tax credit fund shall be apportioned
35each year in the manner provided in this chapter so as to give
-1-1a credit against the tax on each eligible tract of agricultural
2land within the several school districts of the state in which
3the levy for the general school fund exceeds five dollars and
4forty cents per thousand dollars of assessed value the levy
5rate under section 257.3, subsection 1, paragraph “a”. The
6amount of the credit on each eligible tract of agricultural
7land shall be the amount the tax levied for the general school
8fund exceeds the amount of tax which would be levied on each
9eligible tract of agricultural land were the levy for the
10general school fund five dollars and forty cents per thousand
11dollars of assessed value the levy rate under section 257.3,
12subsection 1, paragraph “a”, for the previous year. However,
13in the case of a deficiency in the family farm tax credit fund
14to pay the credits in full, the credit on each eligible tract
15of agricultural land in the state shall be proportionate and
16applied as provided in this chapter.
17 Sec. 4. Section 425A.5, Code 2023, is amended to read as
18follows:
19425A.5 Computation by county auditor.
20The family farm tax credit allowed each year shall be
21computed as follows: On or before April 1, the county auditor
22shall list by school districts all tracts of agricultural
23land which are entitled to credit, the taxable value for the
24previous year, the budget from each school district for the
25previous year, and the tax rate determined for the general
26fund of the school district in the manner prescribed in
27section 444.3 for the previous year, and if the tax rate is in
28excess of five dollars and forty cents per thousand dollars of
29assessed value the levy rate under section 257.3, subsection
301, paragraph “a”, the auditor shall multiply the tax levy which
31is in excess of five dollars and forty cents per thousand
32dollars of assessed value the levy rate under section 257.3,
33subsection 1, paragraph “a”, by the total taxable value of the
34agricultural land entitled to credit in the school district,
35and on or before April 1, certify the total amount of credit
-2-1and the total number of acres entitled to the credit to the
2department of revenue.
3 Sec. 5. Section 426.3, Code 2023, is amended to read as
4follows:
5426.3 Where credit given.
6The agricultural land credit fund shall be apportioned each
7year in the manner hereinafter provided so as to give a credit
8against the tax on each tract of agricultural lands within the
9several school districts of the state in which the levy for
10the general school fund exceeds five dollars and forty cents
11per thousand dollars of assessed value the levy rate under
12section 257.3, subsection 1, paragraph “a”; the amount of such
13credit on each tract of such lands shall be the amount the tax
14levied for the general school fund exceeds the amount of tax
15which would be levied on said tract of such lands were the
16levy for the general school fund five dollars and forty cents
17per thousand dollars of assessed value the levy rate under
18section 257.3, subsection 1, paragraph “a”, for the previous
19year, except in the case of a deficiency in the agricultural
20land credit fund to pay said credits in full, in which case the
21credit on each eligible tract of such lands in the state shall
22be proportionate and shall be applied as hereinafter provided.
23 Sec. 6. Section 426.6, subsection 1, Code 2023, is amended
24to read as follows:
251. The agricultural land tax credit allowed each year
26shall be computed as follows: On or before April 1, the
27county auditor shall list by school districts all tracts of
28agricultural lands which are entitled to credit, together with
29the taxable value for the previous year, together with the
30budget from each school district for the previous year, and the
31tax rate determined for the general fund of the district in
32the manner prescribed in section 444.3 for the previous year,
33and if such tax rate is in excess of five dollars and forty
34cents per thousand dollars of assessed value the levy rate
35under section 257.3, subsection 1, paragraph “a”, the auditor
-3-1shall multiply the tax levy which is in excess of five dollars
2and forty cents per thousand dollars of assessed value the
3levy rate under section 257.3, subsection 1, paragraph “a”, by
4the total taxable value of the agricultural lands entitled to
5credit in the district, and on or before April 1, certify the
6amount to the department of revenue.
7 Sec. 7. ADJUSTMENT OF CALCULATIONS. For property tax
8credits under chapters 425A and 426 for property taxes due and
9payable in the fiscal year beginning July 1, 2023, the tax rate
10determined for the general fund of the school district in the
11manner prescribed in section 444.3 for the previous year shall
12be determined using the applicable property tax levy rate under
13section 257.3, as amended in this division of this Act.
14 Sec. 8. EFFECTIVE DATE. This division of this Act, being
15deemed of immediate importance, takes effect upon enactment.
16 Sec. 9. APPLICABILITY. The following apply July 1, 2023,
17for school budget years beginning on or after that date:
181. The section of this division of this Act amending section
19257.3, subsection 1, paragraph “a”.
202. The section of this division of this Act amending section
21257.3, subsection 2, paragraphs “a” and “b”.
22DIVISION II
23PROPERTY TAX LIMITATION
24 Sec. 10. Section 443.2, subsection 1, Code 2023, is amended
25to read as follows:
261. Before the first day of July in each year, the county
27auditor shall transcribe the assessments of the townships and
28cities into a book or record, to be known as the tax list,
29properly ruled and headed, with separate columns, in which
30shall be entered the names of the taxpayers, descriptions of
31lands, number of acres and value, numbers of city lots and
32value, and each description of tax, with a column for polls and
33one for payments, and shall complete it by entering the amount
34due on each installment, separately, and carrying out the total
35of both installments. The total of all columns of each page of
-4-1each book or other record shall balance with the tax totals.
2After computing the amount of tax due and payable on each
3property, the county auditor shall round the total amount of
4tax due and payable on the property to the nearest even whole
5dollar and, if applicable, reduce the amounts due and payable
6as required under section 444.25.
7 Sec. 11. Section 444.1, Code 2023, is amended to read as
8follows:
9444.1 Basis for amount of tax.
10In all taxing districts in the state, including townships,
11school districts, cities, and counties, when by law then
12existing the people are authorized to determine by vote, or
13officers are authorized to estimate or determine, a rate of
14taxation required for any public purpose, such rate shall in
15all cases be estimated and based upon the adjusted taxable
16valuation of such taxing district for the preceding calendar
17year and subject to the limitation of section 444.25.
18 Sec. 12. Section 444.2, Code 2023, is amended to read as
19follows:
20444.2 Amounts certified in dollars.
21When an authorized tax rate within a taxing district,
22including townships, school districts, cities, and counties,
23has been thus determined as provided by law, the officer or
24officers charged with the duty of certifying the authorized
25rate to the county auditor or board of supervisors shall,
26before certifying the rate, compute upon the adjusted taxable
27valuation of the taxing district for the preceding fiscal year,
28the amount of tax the rate will raise, stated in dollars,
29subject to the limitation of section 444.25, and shall certify
30the computed amount in dollars and not by rate, to the county
31auditor and board of supervisors.
32 Sec. 13. Section 444.3, Code 2023, is amended to read as
33follows:
34444.3 Computation of rate.
35When the valuations for the several taxing districts shall
-5-1have been adjusted by the several boards for the current
2year, the county auditor shall thereupon apply such a rate,
3not exceeding the rate authorized by law, as will raise the
4amount required for such taxing district, and no larger amount,
5subject to the limitation under section 444.25. For purposes
6of computing the rate under this section, the adjusted taxable
7valuation of the property of a taxing district does not include
8the valuation of property of a railway corporation or its
9trustee which corporation has been declared bankrupt or is in
10bankruptcy proceedings. Nothing in the preceding sentence
11exempts the property of such railway corporation or its trustee
12from taxation and the rate computed under this section shall
13be levied on the taxable property of such railway corporation
14or its trustee.
15 Sec. 14. Section 444.22, Code 2023, is amended to read as
16follows:
17444.22 Annual levy.
18In each year the director of revenue shall fix the rate in
19percentage to be levied upon the assessed valuation of the
20taxable property of the state necessary to raise the amount for
21general state purposes as shall be designated by the department
22of management, subject to the limitation under section 444.25.
23 Sec. 15. NEW SECTION. 444.25 Property tax amount limitation
24— reduction.
251. For purposes of this section:
26a. “Base year” means the assessment year preceding the
27assessment year used to calculate property taxes due and
28payable in the applicable fiscal year.
29b. “Local taxing authority” means a city, county, community
30college, school district, or other governmental subdivision
31located in this state and authorized to certify a levy on
32property located within such authority.
33c. “New construction” means buildings, structures, or
34improvements constructed or relocated on or made to the parcel.
35d. “Parcel” means each separate item shown on the tax list,
-6-1manufactured or mobile home tax list, schedule of assessment,
2or schedule of rate or charge.
3e. “Property taxes” means annual ad valorem taxes imposed
4on the parcel which are collectable by the county treasurer
5following application of all applicable exemptions and credits,
6and shall not include special assessments, amounts levied under
7chapter 468, or taxes under chapter 435. “Property taxes” also
8do not include taxes levied as the result of a property tax
9levy approved at election or that portion of any property tax
10levy imposed that is for the payment of principal and interest
11on bonds or other indebtedness the issuance of which was
12approved at election, including refunding bonds issued for the
13repayment of bonds that were approved at election.
14f. “Qualified parcel” means a parcel that is not located
15in an urban renewal area under chapter 403 or an urban
16revitalization area under chapter 404, is not wind energy
17conversion property as defined in section 427B.26, and for
18which none of the following apply:
19(1) The parcel changed ownership during the base year.
20(2) New construction occurred on the parcel during the base
21year.
22(3) The parcel’s assessment for the base year was a partial
23assessment as the result of incomplete new construction or
24improvements.
25(4) The parcel was omitted from assessment or fraudulently
26withheld from assessment in the base year.
27(5) The parcel’s property taxes were suspended or abated
28under sections 427.8, 427.9, and 427.10.
29(6) The parcel’s classification is different from the base
30year.
312. a. For property taxes due and payable in fiscal years
32beginning on or after July 1, 2024, if the amount of property
33taxes otherwise calculated to be due and payable on a qualified
34parcel of residential property or agricultural property
35exceeds one hundred three percent of the actual amount of
-7-1property taxes due and payable on the parcel in the immediately
2preceding fiscal year, such amount shall be reduced as provided
3in subsection 3. If, however, improvements or renovations, not
4amounting to new construction, occurs on the property during
5the base year, the threshold amount of property taxes shall be
6one hundred three percent plus the percentage of the parcel’s
7taxable value attributable to the improvements or renovations.
8Improvements or renovations do not include normal and necessary
9repairs to an existing building or improvement, not amounting
10to structural replacements or modifications.
11b. For property taxes due and payable in fiscal years
12beginning on or after July 1, 2024, if the amount of property
13taxes otherwise calculated to be due and payable on a qualified
14parcel of commercial property or industrial property exceeds
15one hundred eight percent of the actual amount of property
16taxes due and payable on the parcel in the immediately
17preceding fiscal year, such amount shall be reduced as provided
18in subsection 3. If, however, improvements or renovations, not
19amounting to new construction, occurs on the property during
20the base year, the threshold amount of property taxes shall be
21one hundred eight percent plus the percentage of the parcel’s
22taxable value attributable to the improvements or renovations.
23Improvements or renovations do not include normal and necessary
24repairs to an existing building or improvement, not amounting
25to structural replacements or modifications.
26c. Property taxes levied by a political subdivision that did
27not exist for the immediately preceding fiscal year shall not
28be included in the calculation of the property tax to be due
29and payable for the fiscal year and shall not be reduced under
30subsection 3.
313. a. If the total amount of property taxes due and
32payable on the parcel exceeds the applicable threshold for
33the parcel under subsection 2, the amount of property taxes
34due and payable to each taxing authority that certified for
35levy property taxes on the parcel in excess of the applicable
-8-1threshold percentage of such amount levied by that taxing
2authority on the parcel in the immediately preceding fiscal
3year shall be reduced by the amount by which the parcel’s
4total amount of property taxes due and payable for all taxing
5authorities exceeds the applicable threshold for the parcel
6under subsection 2.
7b. The amount of the reduction shall be proportionately
8applied among the various levies for property taxes, or
9portions thereof, of those taxing authorities that certified
10for levy property taxes on the parcel in excess of the
11applicable threshold percentage of such amount levied by that
12taxing authority on the parcel in the immediately preceding
13fiscal year.
14c. The reductions shall be made by the county auditor prior
15to delivery of the tax list prescribed in chapter 443 to ensure
16accurate statement of taxes under section 445.5.
174. The director of the department of revenue shall adopt
18rules pursuant to chapter 17A to administer and interpret this
19section.
20 Sec. 16. Section 445.5, subsection 1, paragraphs e, f, g,
21and h, Code 2023, are amended to read as follows:
22e. The complete name of all taxing authorities receiving a
23tax distribution, the amount of the distribution, the amount of
24any reduction resulting from section 444.25, and the percentage
25distribution for each named authority, listed from the highest
26to the lowest distribution percentage.
27f. The consolidated levy rate for one thousand dollars
28of taxable valuation multiplied by the taxable valuation to
29produce the gross taxes levied before application of credits
30against levied taxes for the previous and current fiscal years
31and before any reduction resulting from section 444.25.
32g. The itemized credits against levied taxes deducted from
33the gross taxes levied in order to produce the net taxes owed
34for the previous and current fiscal years and the amount of any
35reductions under section 444.25 for previous and current fiscal
-9-1years.
2h. The total amount of taxes levied by each taxing authority
3in the previous fiscal year and the current fiscal year and the
4difference between the two amounts, expressed as a percentage
5increase or decrease, and the amount of any reduction to a
6taxing authority resulting from section 444.25.
7 Sec. 17. Section 445.57, subsection 1, Code 2023, is amended
8to read as follows:
91. On or before the tenth day of each month, the county
10treasurer shall apportion all taxes collected during the
11preceding month, except partial payment amounts collected
12pursuant to section 445.36A, subsection 1, partial payments
13collected and not yet designated by the county treasurer
14for apportionment pursuant to section 445.36A, subsection
152, partial payments collected pursuant to section 435.24,
16subsection 6, paragraph “a”, and partial payments collected and
17not yet designated by the county treasurer for apportionment
18pursuant to section 435.24, subsection 6, paragraph “b”, among
19the several funds to which they belong according to the amount
20levied for each fund, as adjusted under section 444.25, if
21applicable, and shall apportion the interest, fees, and costs
22on the taxes to the general fund, and shall enter those amounts
23upon the treasurer’s cash account, and report the amounts to
24the county auditor.
25 Sec. 18. IMPLEMENTATION OF ACT.
261. Section 25B.2, subsection 3, shall not apply to this
27division of this Act.
282. Section 25B.7 shall not apply to this division of this
29Act.
30 Sec. 19. APPLICABILITY. This division of this Act applies
31to property taxes due and payable in fiscal years beginning on
32or after July 1, 2024.
33DIVISION III
34LOCAL GOVERNMENT BUDGETS
35 Sec. 20. Section 24.9, subsection 1, Code 2023, is amended
-10-1to read as follows:
21. a. Each municipality shall file with the secretary or
3clerk thereof the estimates required to be made in sections
424.3 through 24.8, at least twenty days before the date fixed
5by law for certifying the same to the levying board and shall
6forthwith fix a date for a hearing on the estimates, and
7shall publish such estimates and any annual levies previously
8authorized as provided in section 76.2, with a notice of the
9time when and the place where such hearing shall be held not
10less than ten nor more than twenty days before the hearing.
11Provided that in municipalities of less than two hundred
12population such estimates and the notice of hearing shall
13be posted in three public places in the district in lieu of
14publication. For any other municipality such publication
15shall be in a newspaper published in the municipality, if any,
16if not, then in a newspaper of general circulation in the
17municipality. Except for a municipality with property tax
18revenues for the immediately preceding fiscal year of less
19than five thousand dollars, the notice shall also include the
20information required under paragraph “c”, subparagraph (2),
21subparagraph divisions (a) through (d), which shall be adopted
22by resolution of the municipality.
23b. The department of management shall prescribe the form for
24public hearing notices for use by municipalities and notices
25required to be sent under paragraph “c”.
26c. (1) For purposes of this paragraph:
27(a) “Budget year” is the fiscal year beginning during the
28calendar year in which a budget is certified.
29(b) “Current fiscal year” is the fiscal year ending during
30the calendar year in which a budget for the budget year is
31certified.
32(c) “Effective property tax rate” means the property tax
33rate per one thousand dollars of assessed value and is equal to
34one thousand multiplied by the quotient of the current fiscal
35year’s actual property tax dollars certified for levy divided
-11-1by the total assessed value used to calculate taxes for the
2budget year.
3(2) In addition to the notices published and posted
4under paragraph “a”, the municipality shall direct the
5county treasurer to send to each owner or taxpayer within
6the municipality by regular mail, on or before the date
7of publication under paragraph “a”, an individual notice
8containing all of the following:
9(a) The sum of the current fiscal year’s actual property
10taxes certified for levy by the municipality and the
11municipality’s current fiscal year’s combined property tax rate
12for such amount.
13(b) The effective property tax rate calculated using the sum
14of the current fiscal year’s actual property taxes certified by
15the municipality.
16(c) The sum of the proposed property tax dollars to be
17certified for levy by the municipality for the budget year and
18the proposed combined property tax rate for such amount.
19(d) If the proposed property tax dollars specified under
20subparagraph division (c) exceeds the current fiscal year’s
21actual property tax dollars certified for levy specified in
22subparagraph division (a), a statement of the major reasons for
23the increase.
24(e) The assessed value of the owner’s or taxpayer’s property
25used to calculate property taxes for the current fiscal year.
26(f) The assessed value of the owner’s or taxpayer’s property
27used to calculate property taxes for the budget year.
28(g) The amount of property taxes due on the owner’s or
29taxpayer’s property for the current fiscal year for the
30municipality.
31(h) The proposed amount of property taxes to be levied
32against the owner’s or taxpayer’s property for the budget year
33for the municipality.
34(3) This paragraph does not apply to municipalities with
35property tax revenues for the immediately preceding fiscal year
-12-1of less than five thousand dollars.
2 Sec. 21. Section 331.433A, subsection 4, paragraph b, Code
32023, is amended to read as follows:
4b. Proof of publication shall be filed with and preserved
5by the auditor. The department of management shall prescribe
6the form for the public hearing notice for use by counties, the
7form for individual notices provided under paragraph “c”, and
8the form for the resolution to be adopted by the board under
9subsection 5.
10 Sec. 22. Section 331.433A, subsection 4, Code 2023, is
11amended by adding the following new paragraph:
12 NEW PARAGRAPH. c. In addition to the notices published and
13posted under paragraph “a”, the county shall direct the county
14treasurer to send to each owner or taxpayer by regular mail,
15on or before the date of publication under paragraph “a”, an
16individual notice containing the information required under
17paragraph “a”, subparagraphs (1) through (4), and all of the
18following:
19(1) The assessed value of the owner’s or taxpayer’s property
20used to calculate property taxes for the current fiscal year.
21(2) The assessed value of the owner’s or taxpayer’s property
22used to calculate property taxes for the budget year.
23(3) The amount of property taxes due on the owner’s or
24taxpayer’s property for the current fiscal year for general
25county services and rural county services under the levies
26specified in subsection 2, paragraphs “a” and “b”.
27(4) The proposed amount of property taxes to be levied
28against the owner’s or taxpayer’s property for the budget year
29for general county services and rural county services under the
30levies specified in subsection 2, paragraphs “a” and “b”.
31 Sec. 23. Section 331.433A, subsection 5, paragraph a, Code
322023, is amended to read as follows:
33a. At the public hearing, the board shall receive oral
34or written objections from any resident or property owner
35of the county. After all objections have been received and
-13-1considered, the board may decrease, but not increase, the
2proposed maximum property tax dollar amounts for inclusion in
3the resolution and shall adopt the resolution and file the
4resolution with the auditor as required under section 331.434,
5subsection 3. In addition to the proposed maximum property tax
6dollar amounts for general county services and rural county
7services, the resolution shall also include the effective
8property tax rate for general county services, the effective
9property tax rate for rural county services, the estimated
10property tax rate for the proposed general county services
11maximum property tax dollar amount, and the estimated property
12tax rate for the proposed rural county services maximum
13property tax dollar amount.
14 Sec. 24. Section 331.553, Code 2023, is amended by adding
15the following new subsection:
16 NEW SUBSECTION. 9. If all applicable information is
17available in a timely manner, consolidate all required
18individual notices required under section 24.9, subsection 1,
19paragraph “c”, subparagraph (2), section 331.433A, subsection
204, paragraph “c”, section 359.49, subsection 4, paragraph
21“b”, subparagraph (2), and section 384.15A, subsection 4,
22paragraph “c”, so that all applicable notices appear on a single
23individual notice for each owner or taxpayer.
24 Sec. 25. Section 359.49, subsection 4, Code 2023, is amended
25to read as follows:
264. a. The board of trustees shall transmit a copy of the
27proposed budget and a notice of the meeting set as required by
28subsection 5 to the county auditor for posting. The county
29auditor shall post the notice and the proposed budget in an
30area of the courthouse where notices to the public are commonly
31posted. The notice shall also include the information required
32under paragraph “b”, subparagraph (2), subparagraph divisions
33(a) through (d), which shall be adopted by resolution of the
34board of trustees.
35b. (1) For purposes of this paragraph:
-14- 1(a) “Budget year” is the fiscal year beginning during the
2calendar year in which a budget is certified.
3(b) “Current fiscal year” is the fiscal year ending during
4the calendar year in which a budget for the budget year is
5certified.
6(c) “Effective property tax rate” means the property tax
7rate per one thousand dollars of assessed value and is equal to
8one thousand multiplied by the quotient of the current fiscal
9year’s actual property tax dollars certified for levy divided
10by the total assessed value used to calculate taxes for the
11budget year.
12(2) In addition to the notices published and posted under
13paragraph “a”, the township shall direct the county treasurer to
14send to each owner or taxpayer within the township by regular
15mail, on or before the date of posting under paragraph “a”, an
16individual notice containing all of the following:
17(a) The sum of the current fiscal year’s actual property
18taxes certified for levy by the township and the township’s
19current fiscal year’s combined property tax rate for such
20amount.
21(b) The effective property tax rate calculated using the sum
22of the current fiscal year’s actual property taxes certified by
23the township.
24(c) The sum of the proposed property tax dollars to be
25certified for levy by the township for the budget year and the
26proposed combined property tax rate for such amount.
27(d) If the proposed property tax dollars specified under
28subparagraph division (c) exceed the current fiscal year’s
29actual property tax dollars certified for levy specified in
30subparagraph division (a), a statement of the major reasons for
31the increase.
32(e) The assessed value of the owner’s or taxpayer’s property
33used to calculate property taxes for the current fiscal year.
34(f) The assessed value of the owner’s or taxpayer’s property
35used to calculate property taxes for the budget year.
-15- 1(g) The amount of property taxes due on the owner’s or
2taxpayer’s property for the current fiscal year for the
3township.
4(h) The proposed amount of property taxes to be levied
5against the owner’s or taxpayer’s property for the budget year
6for the township.
7 Sec. 26. Section 384.15A, subsection 4, paragraph b, Code
82023, is amended to read as follows:
9b. Proof of publication shall be filed with and preserved
10by the county auditor. The department of management shall
11prescribe the form for the public hearing notice for use
12by cities, the form for individual notices provided under
13paragraph “c”, and the form for the resolution to be adopted by
14the council under subsection 5.
15 Sec. 27. Section 384.15A, subsection 4, Code 2023, is
16amended by adding the following new paragraph:
17 NEW PARAGRAPH. c. In addition to the notices published and
18posted under paragraph “a”, the city shall direct the county
19treasurer to send to each owner or taxpayer by regular mail,
20on or before the date of publication under paragraph “a”, an
21individual notice containing the information required under
22paragraph “a”, subparagraphs (1) through (4), and all of the
23following:
24(1) The assessed value of the owner’s or taxpayer’s property
25used to calculate property taxes for the current fiscal year.
26(2) The assessed value of the owner’s or taxpayer’s property
27used to calculate property taxes for the budget year.
28(3) The amount of property taxes due on the owner’s or
29taxpayer’s property for the current fiscal year for the city
30under the levies specified in subsection 2.
31(4) The proposed amount of property taxes to be levied
32against the owner’s or taxpayer’s property for the budget year
33for the city under the levies specified in subsection 2.
34 Sec. 28. Section 384.15A, subsection 5, paragraph a, Code
352023, is amended to read as follows:
-16- 1a. At the public hearing, the council shall receive oral
2or written objections from any resident or property owner
3of the city. After all objections have been received and
4considered, the council may decrease, but not increase, the
5proposed maximum property tax dollar amount for inclusion in
6the resolution and shall adopt the resolution and file the
7resolution with the county auditor as required under section
8384.16, subsection 3. In addition to the proposed maximum
9property tax dollar amount, the resolution shall also include
10the effective property tax rate, and the estimated property tax
11rate for the proposed maximum property tax dollar amount.
12 Sec. 29. IMPLEMENTATION. Section 25B.2, subsection 3,
13shall not apply to this division of this Act.
14 Sec. 30. APPLICABILITY. This division of this Act applies
15to county, city, township, and municipality budgets for fiscal
16years beginning on or after July 1, 2024.
17DIVISION IV
18BOND ELECTIONS
19 Sec. 31. Section 28E.16, Code 2023, is amended to read as
20follows:
2128E.16 Election for bonds.
22When bonds which require a vote of the people are to be
23issued for financing joint facilities of a county and one or
24more cities within the county, pursuant to an agreement made
25under the authority of this chapter, or pursuant to other
26provisions of law, the board of supervisors and the council of
27each city shall arrange for a single election on the question
28of issuing the bonds, but if the county and the cities are
29proposing to make separate bond issues, the ballot shall
30contain separate questions, one to be voted upon by all voters
31of the county, and one or more to be voted upon only by the
32voters of the city which is to make a separate bond issue. All
33elections on the question of issuing the bonds shall be held on
34the date specified in section 39.2, subsection 4, paragraph “d”.
35 Sec. 32. Section 39.2, subsection 4, Code 2023, is amended
-17-1to read as follows:
24. Unless otherwise provided by law, special elections on
3public measures are limited to the following dates:
4a. For Except as provided in paragraph “d”, for a county, in
5an odd-numbered year, the first Tuesday in March, the second
6Tuesday in September, or the first Tuesday after the first
7Monday in November. For a county, in an even-numbered year,
8the first Tuesday in March, the second Tuesday in September, or
9the first Tuesday after the first Monday in November.
10b. For Except as provided in paragraph “d”, for a city, in
11an odd-numbered year, the first Tuesday in March, the second
12Tuesday in September, or the first Tuesday after the first
13Monday in November. For a city, in an even-numbered year, the
14first Tuesday in March or the second Tuesday in September.
15c. For Except as provided in paragraph “d”, for a school
16district or merged area, in the odd-numbered year, the first
17Tuesday in March, the second Tuesday in September, or the first
18Tuesday after the first Monday in November. For a school
19district or merged area, in the even-numbered year, the first
20Tuesday in March, or the second Tuesday in September.
21d. For any political subdivision of this state, if the
22special election is in whole or in part for the question of
23issuing bonds or other indebtedness, the first Tuesday after
24the first Monday in November of each even-numbered year.
25 Sec. 33. NEW SECTION. 39.5 Notice of bond election.
26In addition to any other notice related to the election
27required by law to be published, posted, or provided, if the
28election is subject to section 39.2, subsection 4, paragraph
29“d”, the commissioner shall not less than ten nor more than
30twenty days before the day of each election mail to each
31registered voter of the applicable jurisdiction a notice of the
32election that includes the full text of the public measure to
33be voted upon at the election.
34 Sec. 34. Section 75.1, subsection 1, paragraph a, Code 2023,
35is amended to read as follows:
-18- 1a. When a proposition to authorize an issuance of bonds
2by a county, township, school corporation, city, or by any
3local board or commission, is submitted to the electors, such
4proposition shall not be deemed carried or adopted, anything
5in the statutes to the contrary notwithstanding, unless the
6vote in favor of such authorization is equal to at least sixty
7percent of the total vote cast for and against said proposition
8at said election. All elections on such proposition shall
9be held on the date specified in section 39.2, subsection 4,
10paragraph “d”.
11 Sec. 35. Section 75.1, subsection 2, Code 2023, is amended
12by striking the subsection.
13 Sec. 36. Section 279.39, Code 2023, is amended to read as
14follows:
15279.39 School buildings.
16The board of any school corporation shall establish
17attendance centers and provide suitable buildings for each
18school in the district and may at the regular or a special
19meeting resolve to submit to the registered voters of the
20district at an election held on a date specified in section
2139.2, subsection 4, paragraph “c”, the question of voting a tax
22or authorizing the board to issue bonds, or both.
23 Sec. 37. Section 296.3, Code 2023, is amended to read as
24follows:
25296.3 Election called.
26Within ten days of receipt of a petition filed under section
27296.2, the president of the board of directors shall call a
28meeting of the board. The meeting shall be held within thirty
29days after the petition was received. At the meeting, the
30board shall call the election, fixing the time of the election,
31which may be at the time and place of holding the regular
32school election as required by section 39.2, subsection 4,
33paragraph “d”. However, if the board determines by unanimous
34vote that the proposition or propositions requested by a
35petition to be submitted at an election are grossly unrealistic
-19-1or contrary to the needs of the school district, no election
2shall be called. If more than one petition has been received
3by the time the board meets to consider the petition triggering
4the meeting, the board shall act upon the petitions in the
5order they were received at the meeting called to consider the
6initial petition. The decision of the board may be appealed to
7the state board of education as provided in chapter 290. The
8president shall notify the county commissioner of elections of
9the time of the election.
10 Sec. 38. Section 298.21, unnumbered paragraph 1, Code 2023,
11is amended to read as follows:
12The board of directors of any school corporation when
13authorized by the voters at an election held on a date
14specified in section 39.2, subsection 4, paragraph “c” “d”,
15may issue the negotiable, interest-bearing school bonds of the
16corporation for borrowing money for any or all of the following
17purposes:
18 Sec. 39. Section 331.442, subsection 3, Code 2023, is
19amended to read as follows:
203. a. All elections held pursuant to this section shall
21be held on the date specified in section 39.2, subsection 4,
22paragraph “d”.
23b. Notice of the election shall be given by publication as
24specified in section 331.305. At the election the ballot used
25for the submission of the proposition shall be in substantially
26the form for submitting special questions at general elections.
27 Sec. 40. Section 346.27, subsection 10, paragraph a, Code
282023, is amended to read as follows:
29a. After the incorporation of an authority, and before the
30sale of any issue of revenue bonds, except refunding bonds, the
31authority shall submit to the voters the question of whether
32the authority shall issue and sell revenue bonds. The ballot
33shall state the amount of the bonds and the purposes for
34which the authority is incorporated. All registered voters
35of the county shall be entitled to vote on the question. The
-20-1question may shall be submitted at an election held on a the
2 date specified in section 39.2, subsection 4, paragraph “a” or
3“b”, as applicable “d”. An affirmative vote of a majority of
4the votes cast on the question is required to authorize the
5issuance and sale of revenue bonds.
6 Sec. 41. Section 357C.10, Code 2023, is amended to read as
7follows:
8357C.10 Bonds in anticipation of revenue.
9Benefited street lighting districts may anticipate the
10collection of taxes by the levy herein provided, and to carry
11out the purposes of this chapter may issue bonds payable
12in not more than ten equal installments, with the rate of
13interest thereon not exceeding that permitted by chapter 74A.
14No indebtedness shall be incurred under this chapter until
15authorized by an election. Such election shall be held and
16notice given in the same manner as the election provided herein
17for the authorization of a tax levy, and the same sixty percent
18vote shall be necessary to authorize indebtedness. Both
19 Subject to section 39.2, subsection 4, both propositions may be
20submitted to the voters in the same election.
21 Sec. 42. Section 357D.11, Code 2023, is amended to read as
22follows:
23357D.11 Bonds in anticipation of revenue.
24A district may anticipate the collection of taxes by the
25levy authorized in this chapter, and to carry out the purposes
26of this chapter may issue bonds payable in not more than ten
27equal installments with the rate of interest not exceeding
28that permitted by chapter 74A. An indebtedness shall not be
29incurred under this chapter until authorized by an election.
30The election shall be held and notice given in the same manner
31as provided in section 357D.8, and the same sixty percent vote
32shall be necessary to authorize indebtedness. Both Subject to
33section 39.2, subsection 4, both propositions may be submitted
34to the voters at the same election.
35 Sec. 43. Section 357E.11, Code 2023, is amended to read as
-21-1follows:
2357E.11 Bonds in anticipation of revenue.
3A district, other than a combined district, may anticipate
4the collection of taxes by the levy authorized in this chapter,
5and to carry out the purposes of this chapter may issue bonds
6payable in not more than twenty equal installments with the
7rate of interest not exceeding that permitted by chapter 74A.
8An indebtedness shall not be incurred under this section
9until authorized by an election. The election shall be held
10and notice given in the same manner as provided in section
11357E.8, and the same majority vote is necessary to authorize
12indebtedness. Both Subject to section 39.2, subsection 4,
13both propositions may be submitted to the voters at the same
14election.
15 Sec. 44. Section 357E.11A, subsection 3, Code 2023, is
16amended to read as follows:
173. Except for the issuance of refunding bonds, an
18indebtedness shall not be incurred under this section until
19authorized by an election. The election shall be held and
20notice given in the same manner as provided in section 357E.8,
21except that a proposition to authorize indebtedness is
22approved if sixty percent of those voting on the proposition
23vote in favor of the proposition. A Subject to section
2439.2, subsection 4, a proposition for the authorization
25of indebtedness may be submitted to the voters at the same
26election as the election under section 357E.8.
27 Sec. 45. Section 357F.11, Code 2023, is amended to read as
28follows:
29357F.11 Bonds in anticipation of revenue.
30A district may anticipate the collection of taxes authorized
31in this chapter, and to carry out the purposes of this chapter
32may issue bonds payable in not more than ten equal installments
33with the rate of interest not exceeding that permitted by
34chapter 74A. An indebtedness shall not be incurred under this
35chapter until authorized by an election. The election shall
-22-1be held and notice given in the same manner as provided in
2section 357F.8, and a sixty percent vote shall be necessary
3to authorize indebtedness. Both Subject to section 39.2,
4subsection 4, both propositions may be submitted to the voters
5at the same election.
6 Sec. 46. Section 357G.11, Code 2023, is amended to read as
7follows:
8357G.11 Bonds in anticipation of revenue.
9A district may anticipate the collection of taxes authorized
10in this chapter, and to carry out the purposes of this chapter
11may issue bonds payable in not more than ten equal installments
12with the rate of interest not exceeding that permitted by
13chapter 74A. An indebtedness shall not be incurred under this
14chapter until authorized by an election. The election shall
15be held and notice given in the same manner as provided in
16section 357G.8, and a sixty percent vote shall be necessary
17to authorize indebtedness. Both Subject to section 39.2,
18subsection 4, both propositions may be submitted to the voters
19at the same election.
20 Sec. 47. Section 357I.12, Code 2023, is amended to read as
21follows:
22357I.12 Bonds in anticipation of revenue.
23A district may anticipate the collection of taxes by the
24levy authorized in this chapter, and to carry out the purposes
25of this chapter may issue bonds payable in not more than ten
26equal installments with the rate of interest not exceeding
27that permitted by chapter 74A. An indebtedness shall not be
28incurred under this chapter until authorized by an election.
29The election shall be held and notice given in the same manner
30as provided in section 357I.8, and the same sixty percent vote
31shall be necessary to authorize indebtedness. Both Subject to
32section 39.2, subsection 4, both propositions may be submitted
33to the voters at the same election.
34 Sec. 48. Section 384.26, subsections 2 and 3, Code 2023, are
35amended to read as follows:
-23- 12. Before the council may institute proceedings for the
2issuance of bonds for a general corporate purpose, it shall
3call a special city election to vote upon the question of
4issuing the bonds. At the election the proposition must be
5submitted in the following form:
6Shall the ............ (insert the name of the city) issue
7its bonds in an amount not exceeding the amount of $.... for
8the purpose of ..........?
93. a. All elections held pursuant to this section shall
10be held on the date specified in section 39.2, subsection 4,
11paragraph “d”.
12b. Notice of the election must be given by publication
13as required by section 49.53 in a newspaper of general
14circulation in the city. At the election the ballot used for
15the submission of the proposition must be in substantially the
16form for submitting special questions at general elections.
17 Sec. 49. Section 394.2, subsection 1, Code 2023, is amended
18to read as follows:
191. It shall not be necessary to submit to the voters the
20proposition of issuing bonds for refunding purposes, but prior
21to the issuance of bonds for other purposes the council shall
22submit to the voters of the city at a general election or a
23regular city election on the date specified in section 39.2,
24subsection 4, paragraph “d”, the proposition of issuing the
25bonds. Notice of the election on the proposition of issuing
26bonds shall be published as required by section 49.53. The
27notice shall also state whether or not an admission fee is to
28be charged by the zoo or zoological gardens.
29 Sec. 50. Section 423F.4, subsection 2, paragraph b, Code
302023, is amended to read as follows:
31b. For bonds subject to the requirements of paragraph
32“a”, if at any time prior to the fifteenth day following the
33hearing, the secretary of the board of directors receives a
34petition containing the required number of signatures and
35asking that the question of the issuance of such bonds be
-24-1submitted to the voters of the school district, the board shall
2either rescind its adoption of the resolution or direct the
3county commissioner of elections to submit the question to the
4registered voters of the school district at an election held on
5a the date specified in section 39.2, subsection 4, paragraph
6“c” “d”. The petition must be signed by eligible electors equal
7in number to not less than one hundred or thirty percent of
8the number of voters at the last preceding election of school
9officials under section 277.1, whichever is greater. If the
10board submits the question at an election and a majority of
11those voting on the question favors issuance of the bonds, the
12board shall be authorized to issue the bonds.
13 Sec. 51. IMPLEMENTATION OF ACT. Section 25B.2, subsection
143, shall not apply to this division of this Act.
15 Sec. 52. APPLICABILITY. This division of this Act applies
16July 1, 2023, for elections on propositions relating to the
17issuing of bonds or other indebtedness occurring on or after
18that date.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to local government funding by modifying
23school district funding provisions, property tax calculation
24provisions, and local government budgeting and bonding
25procedures.
26DIVISION I — SCHOOL FOUNDATION PROPERTY TAX. As part
27of Iowa’s system for funding school districts, Code section
28257.3 requires each school district to levy each year, for
29the school general fund, a foundation property tax equal to
30$5.40 per $1,000 of assessed valuation on all taxable property
31in the district. An exception to the $5.40 levy rate is for
32recently reorganized and dissolved school districts. For such
33districts, the first succeeding year requires a rate of $4.40,
34the second succeeding year requires a rate of $4.90, and for
35the third succeeding year and thereafter a rate of $5.40. The
-25-1bill reduces all of the applicable foundation property tax
2rates by $1.00.
3The bill provides for an adjustment of property tax credit
4calculations under Code chapters 425A (family farm tax credit)
5and 426 (agricultural land tax credit) for property taxes due
6and payable in the fiscal year beginning July 1, 2023, to
7account for the change to the property tax levy rate under Code
8section 257.3 in the bill.
9Division I takes effect upon enactment and the sections of
10division I that amend Code section 257.3 apply July 1, 2023,
11for school budget years beginning on or after that date.
12DIVISION II — PROPERTY TAX LIMITATION. The bill provides
13that for property taxes due and payable in fiscal years
14beginning on or after July 1, 2024, if the amount of property
15taxes otherwise calculated to be due and payable on a qualified
16parcel of residential property or agricultural property exceeds
17103 percent of the actual amount of property taxes due and
18payable on the parcel in the immediately preceding fiscal year,
19such amount due shall be reduced. Similarly, if the amount
20of property taxes otherwise calculated to be due and payable
21for such fiscal years on a qualified parcel of commercial
22property or industrial property exceeds 108 percent of the
23actual amount of property taxes due and payable on the parcel
24in the immediately preceding fiscal year, such amount shall
25be reduced. If, however, improvements or renovations, not
26amounting to new construction, occur on the property during
27the base year, as defined in the bill, the threshold amount of
28property taxes shall be the applicable threshold percentage
29applicable to the property plus the percentage of the parcel’s
30taxable value attributable to the improvements or renovations.
31Improvements or renovations do not include normal and necessary
32repairs to an existing building or improvement, not amounting
33to structural replacements or modifications.
34Under the bill, “property taxes” means annual ad valorem
35taxes imposed on the parcel which are collectable by the county
-26-1treasurer following application of all applicable exemptions
2and credits, and shall not include special assessments, amounts
3levied under Code chapter 468, or taxes under Code chapter
4435. “Property taxes” also does not include taxes levied
5as the result of a property tax levy approved at election
6or that portion of any property tax levy imposed that is
7for the payment of principal and interest on bonds or other
8indebtedness the issuance of which was approved at election,
9including refunding bonds issued for the repayment of bonds
10that were approved at election.
11The limitations established in the bill apply to qualified
12parcels. “Qualified parcel” means a parcel that is not located
13in an urban renewal area under Code chapter 403 or an urban
14revitalization area under Code chapter 404, is not wind energy
15conversion property, and for which none of the following apply:
16(1) the parcel changed ownership during the base year; (2)
17new construction occurred on the parcel during the base year;
18(3) the parcel’s assessment for the base year was a partial
19assessment as the result of incomplete new construction or
20improvements; (4) the parcel was omitted from assessment or
21fraudulently withheld from assessment in the base year; (5)
22the parcel’s property taxes were suspended or abated under
23Code sections 427.8, 427.9, and 427.10; or (6) the parcel’s
24classification is different from the base year.
25If the total amount of property taxes due and payable on the
26parcel exceeds the applicable threshold for the parcel under
27the bill, the amount of property taxes due and payable to each
28taxing authority that certified for levy property taxes on the
29parcel in excess of the applicable threshold percentage of
30such amount levied by that taxing authority on the parcel in
31the immediately preceding fiscal year shall be reduced by the
32amount by which the parcel’s total amount of property taxes due
33and payable for all taxing authorities exceeds the applicable
34threshold for the parcel. The amount of the reduction is
35proportionately applied among the various levies for property
-27-1taxes, or portions thereof, of those taxing authorities that
2certified for levy property taxes on the parcel in excess of
3the applicable threshold percentage of such amount levied
4by that taxing authority on the parcel in the immediately
5preceding fiscal year. The reductions are to be made by the
6county auditor prior to delivery of the tax list prescribed in
7Code chapter 443 to ensure accurate statement of taxes under
8Code section 445.5.
9The bill makes corresponding changes to various other
10provisions of the Code relating to the calculation and
11collection of property tax amounts.
12DIVISION III — LOCAL GOVERNMENT BUDGETS. The bill
13modifies provisions relating to the process of approving local
14government budgets.
15The bill amends certain municipality budgeting procedures
16under Code chapter 24. A municipality, as defined in Code
17section 24.2, includes public bodies or corporations that
18have power to levy or certify a tax or sum of money to be
19collected by taxation, except a county, city, drainage
20district, township, or road district. The bill requires
21each municipality with property tax revenues of $5,000 or
22more in the immediately preceding fiscal year to direct the
23county treasurer to send to each owner or taxpayer within the
24municipality by regular mail an individual notice containing
25specified information relating to property taxes certified for
26the current fiscal year and the applicable levy rates, proposed
27property tax amounts for the budget year and the applicable
28levy rates, the effective property tax levy rates, as defined
29in the bill, reasons for any proposed increases, and property
30assessment and property tax information related to the owner’s
31or taxpayer’s property. The bill also provides that such
32municipalities must also include such information, excluding
33specific owner or taxpayer information, in the notice of the
34public hearing on the municipalities’ budget estimates.
35The bill establishes similar requirements for counties
-28-1under Code chapter 331, townships under Code chapter 359, and
2cities under Code chapter 384. The bill also provides that if
3all applicable information is available in a timely manner,
4the county treasurer may consolidate all required individual
5notices required for the various local governments under
6the bill so that all applicable notices appear on a single
7individual notice for each owner or taxpayer.
8The division of the bill may include a state mandate as
9defined in Code section 25B.3. The bill makes inapplicable
10Code section 25B.2, subsection 3, which would relieve a
11political subdivision from complying with a state mandate if
12funding for the cost of the state mandate is not provided or
13specified. Therefore, political subdivisions are required to
14comply with any state mandate included in the division of the
15bill.
16The division of the bill applies to county, city, township,
17and municipality budgets for fiscal years beginning on or after
18July 1, 2024.
19DIVISION IV — BOND ELECTIONS. The bill modifies the date
20upon which elections must be held for the approval of the
21issuance of bonds by political subdivisions of the state.
22Generally, such special elections can be held on various dates
23for cities, counties, school districts, and merged areas, as
24specified in Code section 39.2, subsection 4, or specified
25in other provisions of law. The bill provides that for any
26political subdivision of this state, if the special election
27is in whole or in part for the question of issuing bonds or
28other indebtedness, the first Tuesday after the first Monday
29in November of each even-numbered year, which is the date of
30the general election. The bill makes corresponding changes
31to various other Code chapters governing the approval of the
32issuance of bonds at election.
33The bill also provides that in addition to any other notice
34related to the election required by law to be published,
35posted, or provided, if the election is subject to the new date
-29-1requirement, the commissioner of elections (county auditor)
2shall not less than 10 nor more than 20 days before the day of
3each election mail to each registered voter of the applicable
4jurisdiction a notice of the election that includes the full
5text of the public measure to be voted upon at the election.
6The division of the bill may include a state mandate as
7defined in Code section 25B.3. The bill makes inapplicable
8Code section 25B.2, subsection 3, which would relieve a
9political subdivision from complying with a state mandate if
10funding for the cost of the state mandate is not provided or
11specified. Therefore, political subdivisions are required to
12comply with any state mandate included in the division of the
13bill.
14The division of the bill applies July 1, 2023, for elections
15on propositions relating to the issuing of bonds or other
16indebtedness occurring on or after that date.
-30-md/jh
2district funding provisions, property tax calculation
3provisions, local government budgeting and bonding
4procedures, and including effective date and applicability
5provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2School Foundation PROPERTY Tax
3 Section 1. Section 257.3, subsection 1, paragraph a, Code
42023, is amended to read as follows:
5a. Except as provided in subsections 2 and 3, a school
6district shall cause to be levied each year, for the school
7general fund, a foundation property tax equal to five four
8 dollars and forty cents per thousand dollars of assessed
9valuation on all taxable property in the district. The county
10auditor shall spread the foundation levy over all taxable
11property in the district.
12 Sec. 2. Section 257.3, subsection 2, paragraphs a and b,
13Code 2023, are amended to read as follows:
14a. Notwithstanding subsection 1, a reorganized school
15district shall cause a foundation property tax of four three
16 dollars and forty cents per thousand dollars of assessed
17valuation to be levied on all taxable property which, in the
18year preceding a reorganization, was within a school district
19affected by the reorganization as defined in section 275.1,
20or in the year preceding a dissolution was a part of a school
21district that dissolved if the dissolution proposal has
22been approved by the director of the department of education
23pursuant to section 275.55.
24b. In succeeding school years, the foundation property tax
25levy on that portion shall be increased to the rate of four
26 three dollars and ninety cents per thousand dollars of assessed
27valuation the first succeeding year, five four dollars and
28fifteen cents per thousand dollars of assessed valuation the
29second succeeding year, and five four dollars and forty cents
30per thousand dollars of assessed valuation the third succeeding
31year and each year thereafter.
32 Sec. 3. Section 425A.3, subsection 1, Code 2023, is amended
33to read as follows:
341. The family farm tax credit fund shall be apportioned
35each year in the manner provided in this chapter so as to give
-1-1a credit against the tax on each eligible tract of agricultural
2land within the several school districts of the state in which
3the levy for the general school fund exceeds five dollars and
4forty cents per thousand dollars of assessed value the levy
5rate under section 257.3, subsection 1, paragraph “a”. The
6amount of the credit on each eligible tract of agricultural
7land shall be the amount the tax levied for the general school
8fund exceeds the amount of tax which would be levied on each
9eligible tract of agricultural land were the levy for the
10general school fund five dollars and forty cents per thousand
11dollars of assessed value the levy rate under section 257.3,
12subsection 1, paragraph “a”, for the previous year. However,
13in the case of a deficiency in the family farm tax credit fund
14to pay the credits in full, the credit on each eligible tract
15of agricultural land in the state shall be proportionate and
16applied as provided in this chapter.
17 Sec. 4. Section 425A.5, Code 2023, is amended to read as
18follows:
19425A.5 Computation by county auditor.
20The family farm tax credit allowed each year shall be
21computed as follows: On or before April 1, the county auditor
22shall list by school districts all tracts of agricultural
23land which are entitled to credit, the taxable value for the
24previous year, the budget from each school district for the
25previous year, and the tax rate determined for the general
26fund of the school district in the manner prescribed in
27section 444.3 for the previous year, and if the tax rate is in
28excess of five dollars and forty cents per thousand dollars of
29assessed value the levy rate under section 257.3, subsection
301, paragraph “a”, the auditor shall multiply the tax levy which
31is in excess of five dollars and forty cents per thousand
32dollars of assessed value the levy rate under section 257.3,
33subsection 1, paragraph “a”, by the total taxable value of the
34agricultural land entitled to credit in the school district,
35and on or before April 1, certify the total amount of credit
-2-1and the total number of acres entitled to the credit to the
2department of revenue.
3 Sec. 5. Section 426.3, Code 2023, is amended to read as
4follows:
5426.3 Where credit given.
6The agricultural land credit fund shall be apportioned each
7year in the manner hereinafter provided so as to give a credit
8against the tax on each tract of agricultural lands within the
9several school districts of the state in which the levy for
10the general school fund exceeds five dollars and forty cents
11per thousand dollars of assessed value the levy rate under
12section 257.3, subsection 1, paragraph “a”; the amount of such
13credit on each tract of such lands shall be the amount the tax
14levied for the general school fund exceeds the amount of tax
15which would be levied on said tract of such lands were the
16levy for the general school fund five dollars and forty cents
17per thousand dollars of assessed value the levy rate under
18section 257.3, subsection 1, paragraph “a”, for the previous
19year, except in the case of a deficiency in the agricultural
20land credit fund to pay said credits in full, in which case the
21credit on each eligible tract of such lands in the state shall
22be proportionate and shall be applied as hereinafter provided.
23 Sec. 6. Section 426.6, subsection 1, Code 2023, is amended
24to read as follows:
251. The agricultural land tax credit allowed each year
26shall be computed as follows: On or before April 1, the
27county auditor shall list by school districts all tracts of
28agricultural lands which are entitled to credit, together with
29the taxable value for the previous year, together with the
30budget from each school district for the previous year, and the
31tax rate determined for the general fund of the district in
32the manner prescribed in section 444.3 for the previous year,
33and if such tax rate is in excess of five dollars and forty
34cents per thousand dollars of assessed value the levy rate
35under section 257.3, subsection 1, paragraph “a”, the auditor
-3-1shall multiply the tax levy which is in excess of five dollars
2and forty cents per thousand dollars of assessed value the
3levy rate under section 257.3, subsection 1, paragraph “a”, by
4the total taxable value of the agricultural lands entitled to
5credit in the district, and on or before April 1, certify the
6amount to the department of revenue.
7 Sec. 7. ADJUSTMENT OF CALCULATIONS. For property tax
8credits under chapters 425A and 426 for property taxes due and
9payable in the fiscal year beginning July 1, 2023, the tax rate
10determined for the general fund of the school district in the
11manner prescribed in section 444.3 for the previous year shall
12be determined using the applicable property tax levy rate under
13section 257.3, as amended in this division of this Act.
14 Sec. 8. EFFECTIVE DATE. This division of this Act, being
15deemed of immediate importance, takes effect upon enactment.
16 Sec. 9. APPLICABILITY. The following apply July 1, 2023,
17for school budget years beginning on or after that date:
181. The section of this division of this Act amending section
19257.3, subsection 1, paragraph “a”.
202. The section of this division of this Act amending section
21257.3, subsection 2, paragraphs “a” and “b”.
22DIVISION II
23PROPERTY TAX LIMITATION
24 Sec. 10. Section 443.2, subsection 1, Code 2023, is amended
25to read as follows:
261. Before the first day of July in each year, the county
27auditor shall transcribe the assessments of the townships and
28cities into a book or record, to be known as the tax list,
29properly ruled and headed, with separate columns, in which
30shall be entered the names of the taxpayers, descriptions of
31lands, number of acres and value, numbers of city lots and
32value, and each description of tax, with a column for polls and
33one for payments, and shall complete it by entering the amount
34due on each installment, separately, and carrying out the total
35of both installments. The total of all columns of each page of
-4-1each book or other record shall balance with the tax totals.
2After computing the amount of tax due and payable on each
3property, the county auditor shall round the total amount of
4tax due and payable on the property to the nearest even whole
5dollar and, if applicable, reduce the amounts due and payable
6as required under section 444.25.
7 Sec. 11. Section 444.1, Code 2023, is amended to read as
8follows:
9444.1 Basis for amount of tax.
10In all taxing districts in the state, including townships,
11school districts, cities, and counties, when by law then
12existing the people are authorized to determine by vote, or
13officers are authorized to estimate or determine, a rate of
14taxation required for any public purpose, such rate shall in
15all cases be estimated and based upon the adjusted taxable
16valuation of such taxing district for the preceding calendar
17year and subject to the limitation of section 444.25.
18 Sec. 12. Section 444.2, Code 2023, is amended to read as
19follows:
20444.2 Amounts certified in dollars.
21When an authorized tax rate within a taxing district,
22including townships, school districts, cities, and counties,
23has been thus determined as provided by law, the officer or
24officers charged with the duty of certifying the authorized
25rate to the county auditor or board of supervisors shall,
26before certifying the rate, compute upon the adjusted taxable
27valuation of the taxing district for the preceding fiscal year,
28the amount of tax the rate will raise, stated in dollars,
29subject to the limitation of section 444.25, and shall certify
30the computed amount in dollars and not by rate, to the county
31auditor and board of supervisors.
32 Sec. 13. Section 444.3, Code 2023, is amended to read as
33follows:
34444.3 Computation of rate.
35When the valuations for the several taxing districts shall
-5-1have been adjusted by the several boards for the current
2year, the county auditor shall thereupon apply such a rate,
3not exceeding the rate authorized by law, as will raise the
4amount required for such taxing district, and no larger amount,
5subject to the limitation under section 444.25. For purposes
6of computing the rate under this section, the adjusted taxable
7valuation of the property of a taxing district does not include
8the valuation of property of a railway corporation or its
9trustee which corporation has been declared bankrupt or is in
10bankruptcy proceedings. Nothing in the preceding sentence
11exempts the property of such railway corporation or its trustee
12from taxation and the rate computed under this section shall
13be levied on the taxable property of such railway corporation
14or its trustee.
15 Sec. 14. Section 444.22, Code 2023, is amended to read as
16follows:
17444.22 Annual levy.
18In each year the director of revenue shall fix the rate in
19percentage to be levied upon the assessed valuation of the
20taxable property of the state necessary to raise the amount for
21general state purposes as shall be designated by the department
22of management, subject to the limitation under section 444.25.
23 Sec. 15. NEW SECTION. 444.25 Property tax amount limitation
24— reduction.
251. For purposes of this section:
26a. “Base year” means the assessment year preceding the
27assessment year used to calculate property taxes due and
28payable in the applicable fiscal year.
29b. “Local taxing authority” means a city, county, community
30college, school district, or other governmental subdivision
31located in this state and authorized to certify a levy on
32property located within such authority.
33c. “New construction” means buildings, structures, or
34improvements constructed or relocated on or made to the parcel.
35d. “Parcel” means each separate item shown on the tax list,
-6-1manufactured or mobile home tax list, schedule of assessment,
2or schedule of rate or charge.
3e. “Property taxes” means annual ad valorem taxes imposed
4on the parcel which are collectable by the county treasurer
5following application of all applicable exemptions and credits,
6and shall not include special assessments, amounts levied under
7chapter 468, or taxes under chapter 435. “Property taxes” also
8do not include taxes levied as the result of a property tax
9levy approved at election or that portion of any property tax
10levy imposed that is for the payment of principal and interest
11on bonds or other indebtedness the issuance of which was
12approved at election, including refunding bonds issued for the
13repayment of bonds that were approved at election.
14f. “Qualified parcel” means a parcel that is not located
15in an urban renewal area under chapter 403 or an urban
16revitalization area under chapter 404, is not wind energy
17conversion property as defined in section 427B.26, and for
18which none of the following apply:
19(1) The parcel changed ownership during the base year.
20(2) New construction occurred on the parcel during the base
21year.
22(3) The parcel’s assessment for the base year was a partial
23assessment as the result of incomplete new construction or
24improvements.
25(4) The parcel was omitted from assessment or fraudulently
26withheld from assessment in the base year.
27(5) The parcel’s property taxes were suspended or abated
28under sections 427.8, 427.9, and 427.10.
29(6) The parcel’s classification is different from the base
30year.
312. a. For property taxes due and payable in fiscal years
32beginning on or after July 1, 2024, if the amount of property
33taxes otherwise calculated to be due and payable on a qualified
34parcel of residential property or agricultural property
35exceeds one hundred three percent of the actual amount of
-7-1property taxes due and payable on the parcel in the immediately
2preceding fiscal year, such amount shall be reduced as provided
3in subsection 3. If, however, improvements or renovations, not
4amounting to new construction, occurs on the property during
5the base year, the threshold amount of property taxes shall be
6one hundred three percent plus the percentage of the parcel’s
7taxable value attributable to the improvements or renovations.
8Improvements or renovations do not include normal and necessary
9repairs to an existing building or improvement, not amounting
10to structural replacements or modifications.
11b. For property taxes due and payable in fiscal years
12beginning on or after July 1, 2024, if the amount of property
13taxes otherwise calculated to be due and payable on a qualified
14parcel of commercial property or industrial property exceeds
15one hundred eight percent of the actual amount of property
16taxes due and payable on the parcel in the immediately
17preceding fiscal year, such amount shall be reduced as provided
18in subsection 3. If, however, improvements or renovations, not
19amounting to new construction, occurs on the property during
20the base year, the threshold amount of property taxes shall be
21one hundred eight percent plus the percentage of the parcel’s
22taxable value attributable to the improvements or renovations.
23Improvements or renovations do not include normal and necessary
24repairs to an existing building or improvement, not amounting
25to structural replacements or modifications.
26c. Property taxes levied by a political subdivision that did
27not exist for the immediately preceding fiscal year shall not
28be included in the calculation of the property tax to be due
29and payable for the fiscal year and shall not be reduced under
30subsection 3.
313. a. If the total amount of property taxes due and
32payable on the parcel exceeds the applicable threshold for
33the parcel under subsection 2, the amount of property taxes
34due and payable to each taxing authority that certified for
35levy property taxes on the parcel in excess of the applicable
-8-1threshold percentage of such amount levied by that taxing
2authority on the parcel in the immediately preceding fiscal
3year shall be reduced by the amount by which the parcel’s
4total amount of property taxes due and payable for all taxing
5authorities exceeds the applicable threshold for the parcel
6under subsection 2.
7b. The amount of the reduction shall be proportionately
8applied among the various levies for property taxes, or
9portions thereof, of those taxing authorities that certified
10for levy property taxes on the parcel in excess of the
11applicable threshold percentage of such amount levied by that
12taxing authority on the parcel in the immediately preceding
13fiscal year.
14c. The reductions shall be made by the county auditor prior
15to delivery of the tax list prescribed in chapter 443 to ensure
16accurate statement of taxes under section 445.5.
174. The director of the department of revenue shall adopt
18rules pursuant to chapter 17A to administer and interpret this
19section.
20 Sec. 16. Section 445.5, subsection 1, paragraphs e, f, g,
21and h, Code 2023, are amended to read as follows:
22e. The complete name of all taxing authorities receiving a
23tax distribution, the amount of the distribution, the amount of
24any reduction resulting from section 444.25, and the percentage
25distribution for each named authority, listed from the highest
26to the lowest distribution percentage.
27f. The consolidated levy rate for one thousand dollars
28of taxable valuation multiplied by the taxable valuation to
29produce the gross taxes levied before application of credits
30against levied taxes for the previous and current fiscal years
31and before any reduction resulting from section 444.25.
32g. The itemized credits against levied taxes deducted from
33the gross taxes levied in order to produce the net taxes owed
34for the previous and current fiscal years and the amount of any
35reductions under section 444.25 for previous and current fiscal
-9-1years.
2h. The total amount of taxes levied by each taxing authority
3in the previous fiscal year and the current fiscal year and the
4difference between the two amounts, expressed as a percentage
5increase or decrease, and the amount of any reduction to a
6taxing authority resulting from section 444.25.
7 Sec. 17. Section 445.57, subsection 1, Code 2023, is amended
8to read as follows:
91. On or before the tenth day of each month, the county
10treasurer shall apportion all taxes collected during the
11preceding month, except partial payment amounts collected
12pursuant to section 445.36A, subsection 1, partial payments
13collected and not yet designated by the county treasurer
14for apportionment pursuant to section 445.36A, subsection
152, partial payments collected pursuant to section 435.24,
16subsection 6, paragraph “a”, and partial payments collected and
17not yet designated by the county treasurer for apportionment
18pursuant to section 435.24, subsection 6, paragraph “b”, among
19the several funds to which they belong according to the amount
20levied for each fund, as adjusted under section 444.25, if
21applicable, and shall apportion the interest, fees, and costs
22on the taxes to the general fund, and shall enter those amounts
23upon the treasurer’s cash account, and report the amounts to
24the county auditor.
25 Sec. 18. IMPLEMENTATION OF ACT.
261. Section 25B.2, subsection 3, shall not apply to this
27division of this Act.
282. Section 25B.7 shall not apply to this division of this
29Act.
30 Sec. 19. APPLICABILITY. This division of this Act applies
31to property taxes due and payable in fiscal years beginning on
32or after July 1, 2024.
33DIVISION III
34LOCAL GOVERNMENT BUDGETS
35 Sec. 20. Section 24.9, subsection 1, Code 2023, is amended
-10-1to read as follows:
21. a. Each municipality shall file with the secretary or
3clerk thereof the estimates required to be made in sections
424.3 through 24.8, at least twenty days before the date fixed
5by law for certifying the same to the levying board and shall
6forthwith fix a date for a hearing on the estimates, and
7shall publish such estimates and any annual levies previously
8authorized as provided in section 76.2, with a notice of the
9time when and the place where such hearing shall be held not
10less than ten nor more than twenty days before the hearing.
11Provided that in municipalities of less than two hundred
12population such estimates and the notice of hearing shall
13be posted in three public places in the district in lieu of
14publication. For any other municipality such publication
15shall be in a newspaper published in the municipality, if any,
16if not, then in a newspaper of general circulation in the
17municipality. Except for a municipality with property tax
18revenues for the immediately preceding fiscal year of less
19than five thousand dollars, the notice shall also include the
20information required under paragraph “c”, subparagraph (2),
21subparagraph divisions (a) through (d), which shall be adopted
22by resolution of the municipality.
23b. The department of management shall prescribe the form for
24public hearing notices for use by municipalities and notices
25required to be sent under paragraph “c”.
26c. (1) For purposes of this paragraph:
27(a) “Budget year” is the fiscal year beginning during the
28calendar year in which a budget is certified.
29(b) “Current fiscal year” is the fiscal year ending during
30the calendar year in which a budget for the budget year is
31certified.
32(c) “Effective property tax rate” means the property tax
33rate per one thousand dollars of assessed value and is equal to
34one thousand multiplied by the quotient of the current fiscal
35year’s actual property tax dollars certified for levy divided
-11-1by the total assessed value used to calculate taxes for the
2budget year.
3(2) In addition to the notices published and posted
4under paragraph “a”, the municipality shall direct the
5county treasurer to send to each owner or taxpayer within
6the municipality by regular mail, on or before the date
7of publication under paragraph “a”, an individual notice
8containing all of the following:
9(a) The sum of the current fiscal year’s actual property
10taxes certified for levy by the municipality and the
11municipality’s current fiscal year’s combined property tax rate
12for such amount.
13(b) The effective property tax rate calculated using the sum
14of the current fiscal year’s actual property taxes certified by
15the municipality.
16(c) The sum of the proposed property tax dollars to be
17certified for levy by the municipality for the budget year and
18the proposed combined property tax rate for such amount.
19(d) If the proposed property tax dollars specified under
20subparagraph division (c) exceeds the current fiscal year’s
21actual property tax dollars certified for levy specified in
22subparagraph division (a), a statement of the major reasons for
23the increase.
24(e) The assessed value of the owner’s or taxpayer’s property
25used to calculate property taxes for the current fiscal year.
26(f) The assessed value of the owner’s or taxpayer’s property
27used to calculate property taxes for the budget year.
28(g) The amount of property taxes due on the owner’s or
29taxpayer’s property for the current fiscal year for the
30municipality.
31(h) The proposed amount of property taxes to be levied
32against the owner’s or taxpayer’s property for the budget year
33for the municipality.
34(3) This paragraph does not apply to municipalities with
35property tax revenues for the immediately preceding fiscal year
-12-1of less than five thousand dollars.
2 Sec. 21. Section 331.433A, subsection 4, paragraph b, Code
32023, is amended to read as follows:
4b. Proof of publication shall be filed with and preserved
5by the auditor. The department of management shall prescribe
6the form for the public hearing notice for use by counties, the
7form for individual notices provided under paragraph “c”, and
8the form for the resolution to be adopted by the board under
9subsection 5.
10 Sec. 22. Section 331.433A, subsection 4, Code 2023, is
11amended by adding the following new paragraph:
12 NEW PARAGRAPH. c. In addition to the notices published and
13posted under paragraph “a”, the county shall direct the county
14treasurer to send to each owner or taxpayer by regular mail,
15on or before the date of publication under paragraph “a”, an
16individual notice containing the information required under
17paragraph “a”, subparagraphs (1) through (4), and all of the
18following:
19(1) The assessed value of the owner’s or taxpayer’s property
20used to calculate property taxes for the current fiscal year.
21(2) The assessed value of the owner’s or taxpayer’s property
22used to calculate property taxes for the budget year.
23(3) The amount of property taxes due on the owner’s or
24taxpayer’s property for the current fiscal year for general
25county services and rural county services under the levies
26specified in subsection 2, paragraphs “a” and “b”.
27(4) The proposed amount of property taxes to be levied
28against the owner’s or taxpayer’s property for the budget year
29for general county services and rural county services under the
30levies specified in subsection 2, paragraphs “a” and “b”.
31 Sec. 23. Section 331.433A, subsection 5, paragraph a, Code
322023, is amended to read as follows:
33a. At the public hearing, the board shall receive oral
34or written objections from any resident or property owner
35of the county. After all objections have been received and
-13-1considered, the board may decrease, but not increase, the
2proposed maximum property tax dollar amounts for inclusion in
3the resolution and shall adopt the resolution and file the
4resolution with the auditor as required under section 331.434,
5subsection 3. In addition to the proposed maximum property tax
6dollar amounts for general county services and rural county
7services, the resolution shall also include the effective
8property tax rate for general county services, the effective
9property tax rate for rural county services, the estimated
10property tax rate for the proposed general county services
11maximum property tax dollar amount, and the estimated property
12tax rate for the proposed rural county services maximum
13property tax dollar amount.
14 Sec. 24. Section 331.553, Code 2023, is amended by adding
15the following new subsection:
16 NEW SUBSECTION. 9. If all applicable information is
17available in a timely manner, consolidate all required
18individual notices required under section 24.9, subsection 1,
19paragraph “c”, subparagraph (2), section 331.433A, subsection
204, paragraph “c”, section 359.49, subsection 4, paragraph
21“b”, subparagraph (2), and section 384.15A, subsection 4,
22paragraph “c”, so that all applicable notices appear on a single
23individual notice for each owner or taxpayer.
24 Sec. 25. Section 359.49, subsection 4, Code 2023, is amended
25to read as follows:
264. a. The board of trustees shall transmit a copy of the
27proposed budget and a notice of the meeting set as required by
28subsection 5 to the county auditor for posting. The county
29auditor shall post the notice and the proposed budget in an
30area of the courthouse where notices to the public are commonly
31posted. The notice shall also include the information required
32under paragraph “b”, subparagraph (2), subparagraph divisions
33(a) through (d), which shall be adopted by resolution of the
34board of trustees.
35b. (1) For purposes of this paragraph:
-14- 1(a) “Budget year” is the fiscal year beginning during the
2calendar year in which a budget is certified.
3(b) “Current fiscal year” is the fiscal year ending during
4the calendar year in which a budget for the budget year is
5certified.
6(c) “Effective property tax rate” means the property tax
7rate per one thousand dollars of assessed value and is equal to
8one thousand multiplied by the quotient of the current fiscal
9year’s actual property tax dollars certified for levy divided
10by the total assessed value used to calculate taxes for the
11budget year.
12(2) In addition to the notices published and posted under
13paragraph “a”, the township shall direct the county treasurer to
14send to each owner or taxpayer within the township by regular
15mail, on or before the date of posting under paragraph “a”, an
16individual notice containing all of the following:
17(a) The sum of the current fiscal year’s actual property
18taxes certified for levy by the township and the township’s
19current fiscal year’s combined property tax rate for such
20amount.
21(b) The effective property tax rate calculated using the sum
22of the current fiscal year’s actual property taxes certified by
23the township.
24(c) The sum of the proposed property tax dollars to be
25certified for levy by the township for the budget year and the
26proposed combined property tax rate for such amount.
27(d) If the proposed property tax dollars specified under
28subparagraph division (c) exceed the current fiscal year’s
29actual property tax dollars certified for levy specified in
30subparagraph division (a), a statement of the major reasons for
31the increase.
32(e) The assessed value of the owner’s or taxpayer’s property
33used to calculate property taxes for the current fiscal year.
34(f) The assessed value of the owner’s or taxpayer’s property
35used to calculate property taxes for the budget year.
-15- 1(g) The amount of property taxes due on the owner’s or
2taxpayer’s property for the current fiscal year for the
3township.
4(h) The proposed amount of property taxes to be levied
5against the owner’s or taxpayer’s property for the budget year
6for the township.
7 Sec. 26. Section 384.15A, subsection 4, paragraph b, Code
82023, is amended to read as follows:
9b. Proof of publication shall be filed with and preserved
10by the county auditor. The department of management shall
11prescribe the form for the public hearing notice for use
12by cities, the form for individual notices provided under
13paragraph “c”, and the form for the resolution to be adopted by
14the council under subsection 5.
15 Sec. 27. Section 384.15A, subsection 4, Code 2023, is
16amended by adding the following new paragraph:
17 NEW PARAGRAPH. c. In addition to the notices published and
18posted under paragraph “a”, the city shall direct the county
19treasurer to send to each owner or taxpayer by regular mail,
20on or before the date of publication under paragraph “a”, an
21individual notice containing the information required under
22paragraph “a”, subparagraphs (1) through (4), and all of the
23following:
24(1) The assessed value of the owner’s or taxpayer’s property
25used to calculate property taxes for the current fiscal year.
26(2) The assessed value of the owner’s or taxpayer’s property
27used to calculate property taxes for the budget year.
28(3) The amount of property taxes due on the owner’s or
29taxpayer’s property for the current fiscal year for the city
30under the levies specified in subsection 2.
31(4) The proposed amount of property taxes to be levied
32against the owner’s or taxpayer’s property for the budget year
33for the city under the levies specified in subsection 2.
34 Sec. 28. Section 384.15A, subsection 5, paragraph a, Code
352023, is amended to read as follows:
-16- 1a. At the public hearing, the council shall receive oral
2or written objections from any resident or property owner
3of the city. After all objections have been received and
4considered, the council may decrease, but not increase, the
5proposed maximum property tax dollar amount for inclusion in
6the resolution and shall adopt the resolution and file the
7resolution with the county auditor as required under section
8384.16, subsection 3. In addition to the proposed maximum
9property tax dollar amount, the resolution shall also include
10the effective property tax rate, and the estimated property tax
11rate for the proposed maximum property tax dollar amount.
12 Sec. 29. IMPLEMENTATION. Section 25B.2, subsection 3,
13shall not apply to this division of this Act.
14 Sec. 30. APPLICABILITY. This division of this Act applies
15to county, city, township, and municipality budgets for fiscal
16years beginning on or after July 1, 2024.
17DIVISION IV
18BOND ELECTIONS
19 Sec. 31. Section 28E.16, Code 2023, is amended to read as
20follows:
2128E.16 Election for bonds.
22When bonds which require a vote of the people are to be
23issued for financing joint facilities of a county and one or
24more cities within the county, pursuant to an agreement made
25under the authority of this chapter, or pursuant to other
26provisions of law, the board of supervisors and the council of
27each city shall arrange for a single election on the question
28of issuing the bonds, but if the county and the cities are
29proposing to make separate bond issues, the ballot shall
30contain separate questions, one to be voted upon by all voters
31of the county, and one or more to be voted upon only by the
32voters of the city which is to make a separate bond issue. All
33elections on the question of issuing the bonds shall be held on
34the date specified in section 39.2, subsection 4, paragraph “d”.
35 Sec. 32. Section 39.2, subsection 4, Code 2023, is amended
-17-1to read as follows:
24. Unless otherwise provided by law, special elections on
3public measures are limited to the following dates:
4a. For Except as provided in paragraph “d”, for a county, in
5an odd-numbered year, the first Tuesday in March, the second
6Tuesday in September, or the first Tuesday after the first
7Monday in November. For a county, in an even-numbered year,
8the first Tuesday in March, the second Tuesday in September, or
9the first Tuesday after the first Monday in November.
10b. For Except as provided in paragraph “d”, for a city, in
11an odd-numbered year, the first Tuesday in March, the second
12Tuesday in September, or the first Tuesday after the first
13Monday in November. For a city, in an even-numbered year, the
14first Tuesday in March or the second Tuesday in September.
15c. For Except as provided in paragraph “d”, for a school
16district or merged area, in the odd-numbered year, the first
17Tuesday in March, the second Tuesday in September, or the first
18Tuesday after the first Monday in November. For a school
19district or merged area, in the even-numbered year, the first
20Tuesday in March, or the second Tuesday in September.
21d. For any political subdivision of this state, if the
22special election is in whole or in part for the question of
23issuing bonds or other indebtedness, the first Tuesday after
24the first Monday in November of each even-numbered year.
25 Sec. 33. NEW SECTION. 39.5 Notice of bond election.
26In addition to any other notice related to the election
27required by law to be published, posted, or provided, if the
28election is subject to section 39.2, subsection 4, paragraph
29“d”, the commissioner shall not less than ten nor more than
30twenty days before the day of each election mail to each
31registered voter of the applicable jurisdiction a notice of the
32election that includes the full text of the public measure to
33be voted upon at the election.
34 Sec. 34. Section 75.1, subsection 1, paragraph a, Code 2023,
35is amended to read as follows:
-18- 1a. When a proposition to authorize an issuance of bonds
2by a county, township, school corporation, city, or by any
3local board or commission, is submitted to the electors, such
4proposition shall not be deemed carried or adopted, anything
5in the statutes to the contrary notwithstanding, unless the
6vote in favor of such authorization is equal to at least sixty
7percent of the total vote cast for and against said proposition
8at said election. All elections on such proposition shall
9be held on the date specified in section 39.2, subsection 4,
10paragraph “d”.
11 Sec. 35. Section 75.1, subsection 2, Code 2023, is amended
12by striking the subsection.
13 Sec. 36. Section 279.39, Code 2023, is amended to read as
14follows:
15279.39 School buildings.
16The board of any school corporation shall establish
17attendance centers and provide suitable buildings for each
18school in the district and may at the regular or a special
19meeting resolve to submit to the registered voters of the
20district at an election held on a date specified in section
2139.2, subsection 4, paragraph “c”, the question of voting a tax
22or authorizing the board to issue bonds, or both.
23 Sec. 37. Section 296.3, Code 2023, is amended to read as
24follows:
25296.3 Election called.
26Within ten days of receipt of a petition filed under section
27296.2, the president of the board of directors shall call a
28meeting of the board. The meeting shall be held within thirty
29days after the petition was received. At the meeting, the
30board shall call the election, fixing the time of the election,
31which may be at the time and place of holding the regular
32school election as required by section 39.2, subsection 4,
33paragraph “d”. However, if the board determines by unanimous
34vote that the proposition or propositions requested by a
35petition to be submitted at an election are grossly unrealistic
-19-1or contrary to the needs of the school district, no election
2shall be called. If more than one petition has been received
3by the time the board meets to consider the petition triggering
4the meeting, the board shall act upon the petitions in the
5order they were received at the meeting called to consider the
6initial petition. The decision of the board may be appealed to
7the state board of education as provided in chapter 290. The
8president shall notify the county commissioner of elections of
9the time of the election.
10 Sec. 38. Section 298.21, unnumbered paragraph 1, Code 2023,
11is amended to read as follows:
12The board of directors of any school corporation when
13authorized by the voters at an election held on a date
14specified in section 39.2, subsection 4, paragraph “c” “d”,
15may issue the negotiable, interest-bearing school bonds of the
16corporation for borrowing money for any or all of the following
17purposes:
18 Sec. 39. Section 331.442, subsection 3, Code 2023, is
19amended to read as follows:
203. a. All elections held pursuant to this section shall
21be held on the date specified in section 39.2, subsection 4,
22paragraph “d”.
23b. Notice of the election shall be given by publication as
24specified in section 331.305. At the election the ballot used
25for the submission of the proposition shall be in substantially
26the form for submitting special questions at general elections.
27 Sec. 40. Section 346.27, subsection 10, paragraph a, Code
282023, is amended to read as follows:
29a. After the incorporation of an authority, and before the
30sale of any issue of revenue bonds, except refunding bonds, the
31authority shall submit to the voters the question of whether
32the authority shall issue and sell revenue bonds. The ballot
33shall state the amount of the bonds and the purposes for
34which the authority is incorporated. All registered voters
35of the county shall be entitled to vote on the question. The
-20-1question may shall be submitted at an election held on a the
2 date specified in section 39.2, subsection 4, paragraph “a” or
3“b”, as applicable “d”. An affirmative vote of a majority of
4the votes cast on the question is required to authorize the
5issuance and sale of revenue bonds.
6 Sec. 41. Section 357C.10, Code 2023, is amended to read as
7follows:
8357C.10 Bonds in anticipation of revenue.
9Benefited street lighting districts may anticipate the
10collection of taxes by the levy herein provided, and to carry
11out the purposes of this chapter may issue bonds payable
12in not more than ten equal installments, with the rate of
13interest thereon not exceeding that permitted by chapter 74A.
14No indebtedness shall be incurred under this chapter until
15authorized by an election. Such election shall be held and
16notice given in the same manner as the election provided herein
17for the authorization of a tax levy, and the same sixty percent
18vote shall be necessary to authorize indebtedness. Both
19 Subject to section 39.2, subsection 4, both propositions may be
20submitted to the voters in the same election.
21 Sec. 42. Section 357D.11, Code 2023, is amended to read as
22follows:
23357D.11 Bonds in anticipation of revenue.
24A district may anticipate the collection of taxes by the
25levy authorized in this chapter, and to carry out the purposes
26of this chapter may issue bonds payable in not more than ten
27equal installments with the rate of interest not exceeding
28that permitted by chapter 74A. An indebtedness shall not be
29incurred under this chapter until authorized by an election.
30The election shall be held and notice given in the same manner
31as provided in section 357D.8, and the same sixty percent vote
32shall be necessary to authorize indebtedness. Both Subject to
33section 39.2, subsection 4, both propositions may be submitted
34to the voters at the same election.
35 Sec. 43. Section 357E.11, Code 2023, is amended to read as
-21-1follows:
2357E.11 Bonds in anticipation of revenue.
3A district, other than a combined district, may anticipate
4the collection of taxes by the levy authorized in this chapter,
5and to carry out the purposes of this chapter may issue bonds
6payable in not more than twenty equal installments with the
7rate of interest not exceeding that permitted by chapter 74A.
8An indebtedness shall not be incurred under this section
9until authorized by an election. The election shall be held
10and notice given in the same manner as provided in section
11357E.8, and the same majority vote is necessary to authorize
12indebtedness. Both Subject to section 39.2, subsection 4,
13both propositions may be submitted to the voters at the same
14election.
15 Sec. 44. Section 357E.11A, subsection 3, Code 2023, is
16amended to read as follows:
173. Except for the issuance of refunding bonds, an
18indebtedness shall not be incurred under this section until
19authorized by an election. The election shall be held and
20notice given in the same manner as provided in section 357E.8,
21except that a proposition to authorize indebtedness is
22approved if sixty percent of those voting on the proposition
23vote in favor of the proposition. A Subject to section
2439.2, subsection 4, a proposition for the authorization
25of indebtedness may be submitted to the voters at the same
26election as the election under section 357E.8.
27 Sec. 45. Section 357F.11, Code 2023, is amended to read as
28follows:
29357F.11 Bonds in anticipation of revenue.
30A district may anticipate the collection of taxes authorized
31in this chapter, and to carry out the purposes of this chapter
32may issue bonds payable in not more than ten equal installments
33with the rate of interest not exceeding that permitted by
34chapter 74A. An indebtedness shall not be incurred under this
35chapter until authorized by an election. The election shall
-22-1be held and notice given in the same manner as provided in
2section 357F.8, and a sixty percent vote shall be necessary
3to authorize indebtedness. Both Subject to section 39.2,
4subsection 4, both propositions may be submitted to the voters
5at the same election.
6 Sec. 46. Section 357G.11, Code 2023, is amended to read as
7follows:
8357G.11 Bonds in anticipation of revenue.
9A district may anticipate the collection of taxes authorized
10in this chapter, and to carry out the purposes of this chapter
11may issue bonds payable in not more than ten equal installments
12with the rate of interest not exceeding that permitted by
13chapter 74A. An indebtedness shall not be incurred under this
14chapter until authorized by an election. The election shall
15be held and notice given in the same manner as provided in
16section 357G.8, and a sixty percent vote shall be necessary
17to authorize indebtedness. Both Subject to section 39.2,
18subsection 4, both propositions may be submitted to the voters
19at the same election.
20 Sec. 47. Section 357I.12, Code 2023, is amended to read as
21follows:
22357I.12 Bonds in anticipation of revenue.
23A district may anticipate the collection of taxes by the
24levy authorized in this chapter, and to carry out the purposes
25of this chapter may issue bonds payable in not more than ten
26equal installments with the rate of interest not exceeding
27that permitted by chapter 74A. An indebtedness shall not be
28incurred under this chapter until authorized by an election.
29The election shall be held and notice given in the same manner
30as provided in section 357I.8, and the same sixty percent vote
31shall be necessary to authorize indebtedness. Both Subject to
32section 39.2, subsection 4, both propositions may be submitted
33to the voters at the same election.
34 Sec. 48. Section 384.26, subsections 2 and 3, Code 2023, are
35amended to read as follows:
-23- 12. Before the council may institute proceedings for the
2issuance of bonds for a general corporate purpose, it shall
3call a special city election to vote upon the question of
4issuing the bonds. At the election the proposition must be
5submitted in the following form:
6Shall the ............ (insert the name of the city) issue
7its bonds in an amount not exceeding the amount of $.... for
8the purpose of ..........?
93. a. All elections held pursuant to this section shall
10be held on the date specified in section 39.2, subsection 4,
11paragraph “d”.
12b. Notice of the election must be given by publication
13as required by section 49.53 in a newspaper of general
14circulation in the city. At the election the ballot used for
15the submission of the proposition must be in substantially the
16form for submitting special questions at general elections.
17 Sec. 49. Section 394.2, subsection 1, Code 2023, is amended
18to read as follows:
191. It shall not be necessary to submit to the voters the
20proposition of issuing bonds for refunding purposes, but prior
21to the issuance of bonds for other purposes the council shall
22submit to the voters of the city at a general election or a
23regular city election on the date specified in section 39.2,
24subsection 4, paragraph “d”, the proposition of issuing the
25bonds. Notice of the election on the proposition of issuing
26bonds shall be published as required by section 49.53. The
27notice shall also state whether or not an admission fee is to
28be charged by the zoo or zoological gardens.
29 Sec. 50. Section 423F.4, subsection 2, paragraph b, Code
302023, is amended to read as follows:
31b. For bonds subject to the requirements of paragraph
32“a”, if at any time prior to the fifteenth day following the
33hearing, the secretary of the board of directors receives a
34petition containing the required number of signatures and
35asking that the question of the issuance of such bonds be
-24-1submitted to the voters of the school district, the board shall
2either rescind its adoption of the resolution or direct the
3county commissioner of elections to submit the question to the
4registered voters of the school district at an election held on
5a the date specified in section 39.2, subsection 4, paragraph
6“c” “d”. The petition must be signed by eligible electors equal
7in number to not less than one hundred or thirty percent of
8the number of voters at the last preceding election of school
9officials under section 277.1, whichever is greater. If the
10board submits the question at an election and a majority of
11those voting on the question favors issuance of the bonds, the
12board shall be authorized to issue the bonds.
13 Sec. 51. IMPLEMENTATION OF ACT. Section 25B.2, subsection
143, shall not apply to this division of this Act.
15 Sec. 52. APPLICABILITY. This division of this Act applies
16July 1, 2023, for elections on propositions relating to the
17issuing of bonds or other indebtedness occurring on or after
18that date.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to local government funding by modifying
23school district funding provisions, property tax calculation
24provisions, and local government budgeting and bonding
25procedures.
26DIVISION I — SCHOOL FOUNDATION PROPERTY TAX. As part
27of Iowa’s system for funding school districts, Code section
28257.3 requires each school district to levy each year, for
29the school general fund, a foundation property tax equal to
30$5.40 per $1,000 of assessed valuation on all taxable property
31in the district. An exception to the $5.40 levy rate is for
32recently reorganized and dissolved school districts. For such
33districts, the first succeeding year requires a rate of $4.40,
34the second succeeding year requires a rate of $4.90, and for
35the third succeeding year and thereafter a rate of $5.40. The
-25-1bill reduces all of the applicable foundation property tax
2rates by $1.00.
3The bill provides for an adjustment of property tax credit
4calculations under Code chapters 425A (family farm tax credit)
5and 426 (agricultural land tax credit) for property taxes due
6and payable in the fiscal year beginning July 1, 2023, to
7account for the change to the property tax levy rate under Code
8section 257.3 in the bill.
9Division I takes effect upon enactment and the sections of
10division I that amend Code section 257.3 apply July 1, 2023,
11for school budget years beginning on or after that date.
12DIVISION II — PROPERTY TAX LIMITATION. The bill provides
13that for property taxes due and payable in fiscal years
14beginning on or after July 1, 2024, if the amount of property
15taxes otherwise calculated to be due and payable on a qualified
16parcel of residential property or agricultural property exceeds
17103 percent of the actual amount of property taxes due and
18payable on the parcel in the immediately preceding fiscal year,
19such amount due shall be reduced. Similarly, if the amount
20of property taxes otherwise calculated to be due and payable
21for such fiscal years on a qualified parcel of commercial
22property or industrial property exceeds 108 percent of the
23actual amount of property taxes due and payable on the parcel
24in the immediately preceding fiscal year, such amount shall
25be reduced. If, however, improvements or renovations, not
26amounting to new construction, occur on the property during
27the base year, as defined in the bill, the threshold amount of
28property taxes shall be the applicable threshold percentage
29applicable to the property plus the percentage of the parcel’s
30taxable value attributable to the improvements or renovations.
31Improvements or renovations do not include normal and necessary
32repairs to an existing building or improvement, not amounting
33to structural replacements or modifications.
34Under the bill, “property taxes” means annual ad valorem
35taxes imposed on the parcel which are collectable by the county
-26-1treasurer following application of all applicable exemptions
2and credits, and shall not include special assessments, amounts
3levied under Code chapter 468, or taxes under Code chapter
4435. “Property taxes” also does not include taxes levied
5as the result of a property tax levy approved at election
6or that portion of any property tax levy imposed that is
7for the payment of principal and interest on bonds or other
8indebtedness the issuance of which was approved at election,
9including refunding bonds issued for the repayment of bonds
10that were approved at election.
11The limitations established in the bill apply to qualified
12parcels. “Qualified parcel” means a parcel that is not located
13in an urban renewal area under Code chapter 403 or an urban
14revitalization area under Code chapter 404, is not wind energy
15conversion property, and for which none of the following apply:
16(1) the parcel changed ownership during the base year; (2)
17new construction occurred on the parcel during the base year;
18(3) the parcel’s assessment for the base year was a partial
19assessment as the result of incomplete new construction or
20improvements; (4) the parcel was omitted from assessment or
21fraudulently withheld from assessment in the base year; (5)
22the parcel’s property taxes were suspended or abated under
23Code sections 427.8, 427.9, and 427.10; or (6) the parcel’s
24classification is different from the base year.
25If the total amount of property taxes due and payable on the
26parcel exceeds the applicable threshold for the parcel under
27the bill, the amount of property taxes due and payable to each
28taxing authority that certified for levy property taxes on the
29parcel in excess of the applicable threshold percentage of
30such amount levied by that taxing authority on the parcel in
31the immediately preceding fiscal year shall be reduced by the
32amount by which the parcel’s total amount of property taxes due
33and payable for all taxing authorities exceeds the applicable
34threshold for the parcel. The amount of the reduction is
35proportionately applied among the various levies for property
-27-1taxes, or portions thereof, of those taxing authorities that
2certified for levy property taxes on the parcel in excess of
3the applicable threshold percentage of such amount levied
4by that taxing authority on the parcel in the immediately
5preceding fiscal year. The reductions are to be made by the
6county auditor prior to delivery of the tax list prescribed in
7Code chapter 443 to ensure accurate statement of taxes under
8Code section 445.5.
9The bill makes corresponding changes to various other
10provisions of the Code relating to the calculation and
11collection of property tax amounts.
12DIVISION III — LOCAL GOVERNMENT BUDGETS. The bill
13modifies provisions relating to the process of approving local
14government budgets.
15The bill amends certain municipality budgeting procedures
16under Code chapter 24. A municipality, as defined in Code
17section 24.2, includes public bodies or corporations that
18have power to levy or certify a tax or sum of money to be
19collected by taxation, except a county, city, drainage
20district, township, or road district. The bill requires
21each municipality with property tax revenues of $5,000 or
22more in the immediately preceding fiscal year to direct the
23county treasurer to send to each owner or taxpayer within the
24municipality by regular mail an individual notice containing
25specified information relating to property taxes certified for
26the current fiscal year and the applicable levy rates, proposed
27property tax amounts for the budget year and the applicable
28levy rates, the effective property tax levy rates, as defined
29in the bill, reasons for any proposed increases, and property
30assessment and property tax information related to the owner’s
31or taxpayer’s property. The bill also provides that such
32municipalities must also include such information, excluding
33specific owner or taxpayer information, in the notice of the
34public hearing on the municipalities’ budget estimates.
35The bill establishes similar requirements for counties
-28-1under Code chapter 331, townships under Code chapter 359, and
2cities under Code chapter 384. The bill also provides that if
3all applicable information is available in a timely manner,
4the county treasurer may consolidate all required individual
5notices required for the various local governments under
6the bill so that all applicable notices appear on a single
7individual notice for each owner or taxpayer.
8The division of the bill may include a state mandate as
9defined in Code section 25B.3. The bill makes inapplicable
10Code section 25B.2, subsection 3, which would relieve a
11political subdivision from complying with a state mandate if
12funding for the cost of the state mandate is not provided or
13specified. Therefore, political subdivisions are required to
14comply with any state mandate included in the division of the
15bill.
16The division of the bill applies to county, city, township,
17and municipality budgets for fiscal years beginning on or after
18July 1, 2024.
19DIVISION IV — BOND ELECTIONS. The bill modifies the date
20upon which elections must be held for the approval of the
21issuance of bonds by political subdivisions of the state.
22Generally, such special elections can be held on various dates
23for cities, counties, school districts, and merged areas, as
24specified in Code section 39.2, subsection 4, or specified
25in other provisions of law. The bill provides that for any
26political subdivision of this state, if the special election
27is in whole or in part for the question of issuing bonds or
28other indebtedness, the first Tuesday after the first Monday
29in November of each even-numbered year, which is the date of
30the general election. The bill makes corresponding changes
31to various other Code chapters governing the approval of the
32issuance of bonds at election.
33The bill also provides that in addition to any other notice
34related to the election required by law to be published,
35posted, or provided, if the election is subject to the new date
-29-1requirement, the commissioner of elections (county auditor)
2shall not less than 10 nor more than 20 days before the day of
3each election mail to each registered voter of the applicable
4jurisdiction a notice of the election that includes the full
5text of the public measure to be voted upon at the election.
6The division of the bill may include a state mandate as
7defined in Code section 25B.3. The bill makes inapplicable
8Code section 25B.2, subsection 3, which would relieve a
9political subdivision from complying with a state mandate if
10funding for the cost of the state mandate is not provided or
11specified. Therefore, political subdivisions are required to
12comply with any state mandate included in the division of the
13bill.
14The division of the bill applies July 1, 2023, for elections
15on propositions relating to the issuing of bonds or other
16indebtedness occurring on or after that date.
-30-md/jh