Print
Senate Study Bill 1218 - IntroducedA Bill ForAn Act 1relating to local government property taxes, financial
2authority, operations, and budgets, modifying certain
3transit funding, property tax credits and exemptions, and
4appropriations, requiring certain information related
5to property taxation to be provided to property owners
6and taxpayers, modifying provisions relating to fees for
7driver’s licenses and nonoperator’s identification cards,
8modifying provisions relating to certain writing fees,
9making penalties applicable, and including effective date,
10retroactive applicability, and applicability provisions.
11BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2COUNTY PROPERTY TAXES AND BUDGETS
3 Section 1. Section 331.301, subsection 10, paragraph e,
4subparagraph (1), Code 2023, is amended to read as follows:
5(1) (a) The board must follow substantially the
6authorization procedures of section 331.443 to authorize
7a lease or lease-purchase contract for personal property
8which is payable from the general fund. The board must
9follow substantially the authorization procedures of section
10331.443 to authorize a lease or lease-purchase contract for
11real property which is payable from the general fund if the
12principal amount of the lease-purchase contract does not exceed
13the following limits:
14(i) Four Five hundred twenty thousand dollars in a county
15having a population of twenty-five thousand or less.
16(ii) Five Six hundred fifty thousand dollars in a county
17having a population of more than twenty-five thousand but not
18more than fifty thousand.
19(iii) Six Seven hundred eighty thousand dollars in a county
20having a population of more than fifty thousand but not more
21than one hundred thousand.
22(iv) Eight hundred One million forty thousand dollars in a
23county having a population of more than one hundred thousand
24but not more than two hundred thousand.
25(v) One million three hundred thousand dollars in a county
26having a population of more than two hundred thousand.
27(b) However, if the principal amount of a lease or
28lease-purchase contract pursuant to this subparagraph (1) is
29less than twenty-five thirty-two thousand five hundred dollars,
30the board may authorize the lease or lease-purchase contract
31without following the authorization procedures of section
32331.443.
33 Sec. 2. Section 331.402, subsection 3, paragraph d,
34subparagraph (1), subparagraph divisions (a), (b), (c), (d),
35and (e), Code 2023, are amended to read as follows:
-1- 1(a) Four Five hundred twenty thousand dollars in a county
2having a population of twenty-five thousand or less.
3(b) Five Six hundred fifty thousand dollars in a county
4having a population of more than twenty-five thousand but not
5more than fifty thousand.
6(c) Six Seven hundred eighty thousand dollars in a county
7having a population of more than fifty thousand but not more
8than one hundred thousand.
9(d) Eight hundred One million forty thousand dollars in a
10county having a population of more than one hundred thousand
11but not more than two hundred thousand.
12(e) One million three hundred thousand dollars in a county
13having a population of more than two hundred thousand.
14 Sec. 3. Section 331.403, subsection 1, Code 2023, is amended
15to read as follows:
161. Not later than December 1 of each year on forms and
17pursuant to instructions prescribed by the department of
18management, a county shall prepare an annual financial report
19showing for each county fund the financial condition as of
20June 30 and the results of operations for the year then ended.
21Copies of the report shall be maintained as a public record at
22the auditor’s office and shall be filed with the director of
23the department of management and with the auditor of state by
24December 1. A summary of the report, in a form prescribed by
25the director, shall be published by each county not later than
26December 1 of each year in one or more newspapers which meet
27the requirements of section 618.14. Beginning with the annual
28financial report filed by December 1, 2024, each report shall
29include a list of bonds, notes, or other obligations issued by
30the county during the preceding fiscal year payable from any
31source, including the amount of the issuance, the project or
32purpose of the issuance, whether the issuance was approved
33at election, eligible to be subject to a petition for an
34election, or was exempt from approval at election as the result
35of statutory exclusions based on population of the county or
-2-1amount of the issuance, and identification of issuances from
2the fiscal year or prior fiscal years related to the same
3project or purpose.
4 Sec. 4. Section 331.422, unnumbered paragraph 1, Code 2023,
5is amended to read as follows:
6Subject to this section and sections 331.423 through 331.426
7 331.425 or as otherwise provided by state law, the board of
8each county shall certify property taxes annually at its March
9session to be levied for county purposes as follows:
10 Sec. 5. Section 331.423, Code 2023, is amended to read as
11follows:
12331.423 Basic levies — maximums — adjustments.
13Annually, the board may certify basic levies, subject to the
14following limits:
151. For general county services,:
16a. For fiscal years beginning before July 1, 2024,three
17dollars and fifty cents per thousand dollars of the assessed
18value of all taxable property in the county.
19b. For the fiscal year beginning July 1, 2024, a levy rate
20per thousand dollars of taxable value equal to the sum of three
21dollars and fifty cents plus the sum of the amount per thousand
22dollars of taxable value levied for general county services
23under section 331.426, Code 2023, for the fiscal year beginning
24July 1, 2023.
25c. (1) For each fiscal year beginning on or after July 1,
262025, subject to paragraph “d”, the greater of three dollars
27and fifty cents per thousand dollars of assessed value used to
28calculate taxes for the budget year and the amount determined
29under paragraph “b”, as adjusted under subparagraph (2), if
30applicable.
31(2) If the total assessed value used to calculate taxes
32for general county services for the budget year exceeds one
33hundred three and one-fourth percent of the total assessed
34value used to calculate taxes for the current fiscal year, the
35levy rate per thousand dollars determined under paragraph “b”,
-3-1as previously adjusted under this subparagraph, if applicable,
2shall be reduced to a rate per one thousand dollars of assessed
3value that is equal to one thousand multiplied by the quotient
4of the current fiscal year’s actual property tax dollars
5certified for levy under this subsection 1 divided by one
6hundred three and one-fourth percent of the total assessed
7value used to calculate taxes for the current fiscal year.
8d. In addition to the limitation under paragraph “c”,
9for fiscal years beginning on or after July 1, 2025, if the
10county’s actual levy rate imposed under this subsection for the
11current fiscal year is three dollars and fifty cents or less
12per thousand dollars of assessed value and the total assessed
13value used to calculate taxes for the budget year exceeds one
14hundred two and one-half percent of the total assessed value
15used to calculate taxes for the current fiscal year, the levy
16rate imposed under this subsection for the budget year shall
17not exceed a rate per one thousand dollars of assessed value
18that is equal to one thousand multiplied by the quotient of the
19current fiscal year’s actual property tax dollars certified for
20levy under this subsection 1 divided by one hundred two and
21one-half percent of the total assessed value used to calculate
22taxes for the current fiscal year.
232. For rural county services,:
24a. For fiscal years beginning before July 1, 2024,three
25dollars and ninety-five cents per thousand dollars of the
26assessed value of taxable property in the county outside of
27incorporated city areas.
28b. For the fiscal year beginning July 1, 2024, a levy rate
29per thousand dollars of taxable value equal to the sum of three
30dollars and ninety-five cents plus the sum of the amount per
31thousand dollars of taxable value levied for rural county
32services under section 331.426, Code 2023, for the fiscal year
33beginning July 1, 2023.
34c. (1) For each fiscal year beginning on or after July 1,
352025, subject to paragraph “d”, the greater of three dollars
-4-1and ninety-five cents per thousand dollars of assessed value
2used to calculate taxes for the budget year and the amount
3determined under paragraph “b”, as adjusted under subparagraph
4(2), if applicable.
5(2) If the total assessed value used to calculate taxes for
6rural county services under this subsection for the budget year
7exceeds one hundred three and one-fourth percent of the total
8assessed value used to calculate taxes for the current fiscal
9year, the levy rate per thousand dollars determined under
10paragraph “b”, as previously adjusted under this subparagraph,
11if applicable, shall be reduced to a rate per one thousand
12dollars of assessed value that is equal to one thousand
13multiplied by the quotient of the current fiscal year’s actual
14property tax dollars certified for levy under this subsection
152 divided by one hundred three and one-fourth percent of the
16total assessed value used to calculate taxes for the current
17fiscal year.
18d. In addition to the limitation under paragraph “c”,
19for fiscal years beginning on or after July 1, 2025, if the
20county’s actual levy rate imposed under this subsection for
21the current fiscal year is three dollars and ninety-five cents
22or less per thousand dollars of assessed value and the total
23assessed value used to calculate taxes for the budget year
24exceeds one hundred two and one-half percent of the total
25assessed value used to calculate taxes for the current fiscal
26year, the levy rate imposed under this subsection for the
27budget year shall not exceed a rate per one thousand dollars
28of assessed value that is equal to one thousand multiplied
29by the quotient of the current fiscal year’s actual property
30tax dollars certified for levy under this subsection 2 divided
31by one hundred two and one-half percent of the total assessed
32value used to calculate taxes for the current fiscal year.
333. For purposes of this section:
34a. “Budget year” is the fiscal year beginning during the
35calendar year in which a budget is certified.
-5- 1b. “Current fiscal year” is the fiscal year ending during
2the calendar year in which a budget for the budget year is
3certified.
4 Sec. 6. Section 331.425, unnumbered paragraph 1, Code 2023,
5is amended to read as follows:
6The board may certify an addition to a levy in excess
7of the amounts otherwise permitted under sections 331.423,
8 and 331.424, and 331.426 if the proposition to certify an
9addition to a levy has been submitted at a special levy
10election and received a favorable majority of the votes cast
11on the proposition. A special levy election is subject to the
12following:
13 Sec. 7. Section 331.425, Code 2023, is amended by adding the
14following new subsection:
15 NEW SUBSECTION. 6. a. If the addition to a levy approved
16under this section is due to unusual circumstances resulting
17from the following, the duration of such approval at election
18shall not exceed the following period of years:
19(1) Unusual problems relating to major new functions
20required by state law, three years.
21(2) Unusual need for a new program which will provide
22substantial benefit to county residents, if the county
23establishes the need and the amount of necessary increased
24cost, one year.
25b. For an election to approve an addition to a levy for a
26reason specified in paragraph “a” or as the result of a natural
27disaster, the ballot shall include a statement of the major
28reasons for the difference between the proposed basic tax rate
29and the maximum basic tax rate, including a description of the
30major new functions required by state law and the specific
31new costs to the county to implement the new functions, a
32description of the new program that will provide substantial
33benefits to county residents and specific new costs to the
34county for the program, or the conditions and damage resulting
35from the natural disaster that the county must remedy.
-6-1 Sec. 8. Section 331.434, unnumbered paragraph 1, Code 2023,
2is amended to read as follows:
3Annually, the board of each county, subject to section
4331.403, subsection 4, sections 331.423 through 331.426
5 331.425, section 331.433A, and other applicable state law,
6shall prepare and adopt a budget, certify taxes, and provide
7appropriations as follows:
8 Sec. 9. Section 331.435, subsection 1, Code 2023, is amended
9to read as follows:
101. The board may amend the adopted county budget, subject to
11sections 331.423 through 331.426 331.425 and other applicable
12state law, to permit increases in any class of proposed
13expenditures contained in the budget summary published under
14section 331.434, subsection 3.
15 Sec. 10. Section 331.441, subsection 2, paragraph b,
16subparagraph (5), subparagraph divisions (a), (b), (c), (d),
17and (e), Code 2023, are amended to read as follows:
18(a) Six Seven hundred eighty thousand dollars in a county
19having a population of twenty-five thousand or less.
20(b) Seven Nine hundred fifty ten thousand dollars in a
21county having a population of more than twenty-five thousand
22but not more than fifty thousand.
23(c) Nine One million one hundred seventy thousand dollars in
24a county having a population of more than fifty thousand but
25not more than one hundred thousand.
26(d) One million two five hundred sixty thousand dollars in
27a county having a population of more than one hundred thousand
28but not more than two hundred thousand.
29(e) One million five nine hundred fifty thousand dollars in
30a county having a population of more than two hundred thousand.
31 Sec. 11. Section 331.441, subsection 2, paragraph c,
32subparagraph (11), Code 2023, is amended by striking the
33subparagraph.
34 Sec. 12. Section 331.442, subsection 2, paragraph a, Code
352023, is amended to read as follows:
-7- 1a. The board shall publish notice of the proposal to issue
2the bonds, including a statement of the amount and purpose
3of the bonds, and a statement of the estimated cost of the
4project for which the bonds are to be issued, and an estimate
5of the annual increase in property taxes as the result of
6the bond issuance on a residential property with an actual
7value of one hundred thousand dollars. The notice shall be
8published as provided in section 331.305 with the minutes of
9the meeting at which the board adopts a resolution to call a
10county special election to vote upon the question of issuing
11the bonds. The cost of the project, as published in the notice
12pursuant to this paragraph, is an estimate and is not intended
13to be binding on the board in later proceedings related to the
14project.
15 Sec. 13. Section 331.442, subsection 5, paragraph a,
16subparagraphs (1), (2), and (3), Code 2023, are amended to read
17as follows:
18(1) In counties having a population of twenty thousand or
19less, in an amount of not more than one hundred thirty thousand
20dollars.
21(2) In counties having a population of over twenty thousand
22and not over fifty thousand, in an amount of not more than two
23hundred sixty thousand dollars.
24(3) In counties having a population of over fifty thousand,
25in an amount of not more than three hundred ninety thousand
26dollars.
27 Sec. 14. Section 331.443, subsection 2, Code 2023, is
28amended to read as follows:
292. Before the board may institute proceedings for the
30issuance of bonds for an essential county purpose, a notice
31of the proposed action, including a statement of the amount
32and purposes of the bonds, an estimate of the annual increase
33in property taxes as the result of the bond issuance on a
34residential property with an actual value of one hundred
35thousand dollars, and the time and place of the meeting at
-8-1which the board proposes to take action for the issuance of the
2bonds, shall be published as provided in section 331.305. At
3the meeting, the board shall receive oral or written objections
4from any resident or property owner of the county. After
5all objections have been received and considered, the board,
6at that meeting or a date to which it is adjourned, may take
7additional action for the issuance of the bonds or abandon the
8proposal to issue the bonds. Any resident or property owner
9of the county may appeal the decision of the board to take
10additional action to the district court of the county, within
11fifteen days after the additional action is taken, but the
12additional action of the board is final and conclusive unless
13the court finds that the board exceeded its authority. The
14provisions of this subsection with respect to notice, hearing,
15and appeal, are in lieu of any other law.
16 Sec. 15. REPEAL. Section 331.426, Code 2023, is repealed.
17 Sec. 16. EFFECTIVE DATE. This division of this Act takes
18effect July 1, 2024.
19 Sec. 17. APPLICABILITY. This division of this Act applies
20to taxes and budgets for fiscal years beginning on or after
21July 1, 2024.
22DIVISION II
23CITY PROPERTY TAXES AND BUDGETS
24 Sec. 18. Section 24.48, subsection 5, Code 2023, is amended
25by adding the following new paragraph:
26 NEW PARAGRAPH. c. For budgets for fiscal years beginning on
27or after July 1, 2024, if the political subdivision is a city,
28a suspension of the statutory property tax levy limitations
29under this section shall only be approved by the state appeal
30board in the event of a natural disaster or under the reasons
31specified in subsection 1, paragraph “c” or “f”.
32 Sec. 19. Section 28M.5, subsection 1, Code 2023, is amended
33to read as follows:
341. The commission, with the approval of the board of
35supervisors of participating counties and the city council
-9-1of participating cities in the chapter 28E agreement, may
2levy annually a tax not to exceed ninety-five cents per
3thousand dollars of the assessed value of all taxable property
4in a regional transit district to the extent provided in
5this section. The chapter 28E agreement may authorize the
6commission to levy the tax at different rates within the
7participating cities and counties in amounts sufficient to meet
8the revenue responsibilities of such cities and counties as
9allocated in the budget adopted by the commission. However,
10for a city participating in a regional transit district, the
11total of all the tax levies imposed in the city pursuant
12to section 384.12, subsection 10 1, and this section shall
13not exceed the aggregate of ninety-five cents per thousand
14dollars of the assessed value of all taxable property in the
15participating city.
16 Sec. 20. Section 37.8, Code 2023, is amended to read as
17follows:
1837.8 Levy for Cost of development, operation, and
19 maintenance.
20For the development, operation, and maintenance of a
21building or monument constructed, purchased, or donated under
22this chapter, a city may levy a tax not to exceed eighty-one
23cents per thousand dollars of assessed value on all the taxable
24property within the city, as provided in section 384.12,
25subsection 2 utilize taxes levied under section 384.1.
26 Sec. 21. Section 384.1, Code 2023, is amended to read as
27follows:
28384.1 Taxes certified.
291. A city may certify taxes to be levied by the county
30on all taxable property within the city limits, for all city
31government purposes. However, the
322. a. Notwithstanding subsection 3, thetax levied by
33a city on tracts of land and improvements thereon used and
34assessed for agricultural or horticultural purposes, shall
35not exceed three dollars and three-eighths cents per thousand
-10-1dollars of assessed value in any year. Improvements located
2on such tracts of land and not used for agricultural or
3horticultural purposes and all residential dwellings are
4subject to the same rate of tax levied by the city on all other
5taxable property within the city. A
63. a. For fiscal years beginning before July 1, 2024, a
7city’s tax levy for the general fund shall not exceed eight
8dollars and ten cents per thousand dollars of taxable assessed
9 value used to calculate taxes in any tax year, except for the
10levies authorized in section 384.12.
11b. For the fiscal year beginning July 1, 2024, a city’s
12tax levy for the general fund, except for levies authorized in
13section 384.12, shall not exceed the sum of eight dollars and
14ten cents per thousand dollars of taxable value plus the sum of
15the following for the city, as applicable:
16(1) The amount per thousand dollars of taxable value levied
17by or on behalf of the city under section 384.8, Code 2023, for
18the fiscal year beginning July 1, 2023.
19(2) The total amount per thousand dollars of taxable value
20levied by or on behalf of the city under section 384.12,
21subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, and
2220, Code 2023, for the fiscal year beginning July 1, 2023.
23(3) The amount per thousand dollars of taxable value levied
24by the city under section 24.48, Code 2023, for the fiscal year
25beginning July 1, 2023.
26c. (1) For each fiscal year beginning on or after July
271, 2025, subject to paragraph “d”, a city’s tax levy for the
28general fund, except for levies authorized in section 384.12,
29shall not exceed in any tax year the greater of eight dollars
30and ten cents per thousand dollars of assessed value used to
31calculate taxes for the budget year and the amount determined
32under paragraph “b”, as adjusted under subparagraph (2), if
33applicable.
34(2) If the total assessed value used to calculate taxes
35for the budget year exceeds one hundred three and one-fourth
-11-1percent of the total assessed value used to calculate taxes for
2the current fiscal year, the levy rate per thousand dollars
3determined under paragraph “b”, as previously adjusted under
4this subparagraph, if applicable, shall be reduced to a rate
5per one thousand dollars of assessed value that is equal to
6one thousand multiplied by the quotient of the current fiscal
7year’s actual property tax dollars certified for levy under
8this section divided by one hundred three and one-fourth
9percent of the total assessed value used to calculate taxes for
10the current fiscal year.
11d. In addition to the limitation under paragraph “c”, for
12fiscal years beginning on or after July 1, 2025, if the city’s
13actual levy rate imposed under this section for the current
14fiscal year is eight dollars and ten cents or less per thousand
15dollars of assessed value and the total assessed value used to
16calculate taxes for the budget year exceeds one hundred two and
17one-half percent of the total assessed value used to calculate
18taxes for the current fiscal year, the levy rate imposed under
19this section for the budget year shall not exceed a rate per
20one thousand dollars of assessed value that is equal to one
21thousand multiplied by the quotient of the current fiscal
22year’s actual property tax dollars certified for levy under
23this section divided by one hundred two and one-half percent
24of the total assessed value used to calculate taxes for the
25current fiscal year.
264. For purposes of this section:
27a. “Budget year” is the fiscal year beginning during the
28calendar year in which a budget is certified.
29b. “Current fiscal year” is the fiscal year ending during
30the calendar year in which a budget for the budget year is
31certified.
32 Sec. 22. Section 384.12, Code 2023, is amended to read as
33follows:
34384.12 Additional taxes.
35A city may certify, for the general fund levy, taxes which
-12-1are not subject to the limit provided in section 384.1, and
2which are in addition to any other moneys the city may wish to
3spend for such purposes, as follows:
41. A tax not to exceed thirteen and one-half cents
5per thousand dollars of assessed value for the support of
6instrumental or vocal musical groups, one or more organizations
7which have tax-exempt status under section 501(c)(3) of
8the Internal Revenue Code and are organized and operated
9exclusively for artistic and cultural purposes, or any of these
10purposes, subject to the following:
11a. Upon receipt of a petition valid under the provisions of
12section 362.4, the council shall submit to the voters at the
13next regular city election the question of whether a tax shall
14be levied.
15b. If a majority approves the levy, it may be imposed.
16c. The levy can be eliminated by the same procedure of
17petition and election.
18d. A tax authorized by an election held prior to the
19effective date of the city code may be continued until
20eliminated by the council, or by petition and election.
212. A tax not to exceed eighty-one cents per thousand dollars
22of assessed value for development, operation, and maintenance
23of a memorial building or monument, subject to the provisions
24of subsection 1.
253. A tax not to exceed thirteen and one-half cents per
26thousand dollars of assessed value for support of a symphony
27orchestra, subject to the provisions of subsection 1.
284. A tax not to exceed twenty-seven cents per thousand
29dollars of assessed value for the operation of cultural and
30scientific facilities, subject to the provisions of subsection
311, except that the question may be submitted on the council’s
32own motion.
335. A tax to aid in the construction of a county bridge,
34subject to the provisions of subsection 1, except that the
35question must be submitted at a special election. The expense
-13-1of a special election under this subsection must be paid by the
2county. The notice of the special election must include full
3details of the proposal, including the location of the proposed
4bridge, the rate of tax to be levied, and all other conditions.
56. A tax to aid a company incorporated under the laws of
6this state in the construction of a highway or combination
7bridge across any navigable boundary river of this state,
8commencing or terminating in the city and suitable for use
9as highway, or for both highway and railway purposes. This
10tax levy is subject to the provisions of subsections 1 and 5.
11The levy is limited to one dollar and thirty-five cents per
12thousand dollars of the assessed value of taxable property in
13the city. The estimated cost of the bridge must be at least
14ten thousand dollars, and the city aid may not exceed one-half
15of the estimated cost. The notice of the special election
16must include the name of the corporation to be aided, and all
17conditions required of the corporation. Tax moneys received
18for this purpose may not be paid over by the county treasurer
19until the city has filed a statement that the corporation has
20complied with all conditions.
217. If a tax has been voted for aid of a bridge under
22subsection 6, a further tax may be voted for the purpose of
23purchasing the bridge, subject to the provisions of subsection
241. The levy under this subsection is limited to three dollars
25and thirty-seven and one-half cents per thousand dollars of the
26assessed value of the taxable property in the city, payable in
27not less than ten annual installments.
288. A tax for the purpose of carrying out the terms of a
29contract for the use of a bridge by a city situated on a river
30over which a bridge has been built. The tax may not exceed
31sixty-seven and one-half cents per thousand dollars of assessed
32value each year.
339. A tax for aid to a public transportation company,
34subject to the procedure provided in subsection 1, except the
35question must be submitted at a special election. The levy is
-14-1limited to three and three-eighths cents per thousand dollars
2of assessed value. In addition to any other conditions the
3following requirements must be met before moneys received for
4this purpose may be paid over by the county treasurer:
5a. The public transportation company shall provide the city
6with copies of state and federal income tax returns for the
7five years preceding the year for which payment is contemplated
8or for such lesser period of time as the company has been in
9operation.
10b. The city shall, in any given year, be authorized to pay
11over only such sums as will yield not to exceed two percent
12of the public transportation company’s investment as the same
13is valued in its tax depreciation schedule, provided that
14corporate profits and losses for the five preceding years or
15for such lesser period of time as the company has been in
16operation shall not average in excess of a two percent net
17return. Taxes levied under this subsection may not be used to
18subsidize losses incurred prior to the election required by
19this subsection.
2010. 1. A tax for the operation and maintenance of a
21municipal transit system or for operation and maintenance of a
22regional transit district, and for the creation of a reserve
23fund for the system or district, in an amount not to exceed
24ninety-five cents per thousand dollars of assessed value each
25year, when the revenues from the transit system or district are
26insufficient for such purposes.
2711. If a city has entered into a lease of a building or
28complex of buildings to be operated as a civic center, a tax
29sufficient to pay the installments of rent and for maintenance,
30insurance and taxes not included in the lease rental payments.
3112. A tax not to exceed thirteen and one-half cents per
32thousand dollars of assessed value each year for operating and
33maintaining a civic center owned by a city.
3413. A tax not to exceed six and three-fourths cents per
35thousand dollars of assessed value for planning a sanitary
-15-1disposal project.
214. 2. A tax not to exceed twenty-seven cents per thousand
3dollars of assessed value each year for an aviation authority
4as provided in section 330A.15.
515. A tax not to exceed six and three-fourths cents per
6thousand dollars of assessed value each year for a levee
7improvement fund in special charter cities as provided in
8section 420.155.
916. A tax not to exceed twenty and one-half cents per
10thousand dollars of assessed value each year to maintain an
11institution received by gift or devise, subject to an election
12as required under subsection 1.
1317. 3. A tax to pay the premium costs on tort liability
14insurance, property insurance, and any other insurance that
15may be necessary in the operation of the city, the costs of a
16self-insurance program, the costs of a local government risk
17pool and amounts payable under any insurance agreements to
18provide or procure such insurance, self-insurance program, or
19local government risk pool.
2018. A tax to fund an emergency medical services district
21under chapter 357G.
2219. 4. A tax that exceeds any tax levy limit within this
23chapter, provided the question has been submitted at a special
24levy election and received a simple majority of the votes cast
25on the proposition to authorize the enumerated levy limit to be
26exceeded for the proposed budget year.
27a. The election may be held as specified in this subsection
28if notice is given by the city council, not later than
29forty-six days before the first Tuesday in March, to the county
30commissioner of elections that the election is to be held.
31b. An election under this subsection shall be held on
32the first Tuesday in March and be conducted by the county
33commissioner of elections in accordance with the law.
34c. The ballot question shall be in substantially the
35following form:
-16- 1WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........?
2(Vote for only one of the following choices.)
3CHANGE LEVY AMOUNT ...
4Add to the existing levy amount a tax for the purpose of
5.......... (state purpose of proposed levy) at a rate of ...
6(rate) which will provide an additional $.... (amount).
7KEEP CURRENT LEVY ...
8Continue under the current maximum rate of ..., providing
9$.... (amount).
10d. The commissioner of elections conducting the election
11shall notify the city officials and other county auditors where
12applicable, of the results within two days of the canvass which
13shall be held on the second day that is not a holiday following
14the special levy election, and beginning no earlier than 1:00
15p.m.on that day.
16e. Notice of the election shall be published twice in
17accordance with the provisions of section 362.3, except that
18the first such notice shall be given at least two weeks before
19the election.
20f. The cost of the election shall be borne by the city.
21g. The election provisions of this subsection shall
22supersede other provisions for elections only to the extent
23necessary to comply with the provisions of this subsection.
24h. The provisions of this subsection apply to all cities,
25however organized, including special charter cities which may
26adopt ordinances where necessary to carry out these provisions.
27i. The council shall certify the city’s budget with the tax
28askings not exceeding the amount approved by the special levy
29election.
3020. A tax not to exceed twenty-seven cents per thousand
31dollars of assessed value for support of a public library,
32subject to petition and referendum requirements of subsection
331, except that if a majority approves the levy, it shall be
34imposed.
3521. 5. A tax for the support of a local emergency
-17-1management commission established pursuant to chapter 29C.
2 Sec. 23. Section 384.22, subsection 1, Code 2023, is amended
3to read as follows:
41. Not later than December 1 of each year, a city shall
5publish an annual financial report as provided in section
6362.3 containing a summary for the preceding fiscal year of
7all collections and receipts, all accounts due the city, and
8all expenditures, the current public debt of the city, and the
9legal debt limit of the city for the current fiscal year. The
10annual financial report shall be prepared on forms and pursuant
11to instructions prescribed by the auditor of state. Beginning
12with the annual financial report published by December 1, 2024,
13each report shall include a list of bonds, notes, or other
14obligations issued by the city during the preceding fiscal year
15payable from any source, including the amount of the issuance,
16the project or purpose of the issuance, whether the issuance
17was approved at election, eligible to be subject to a petition
18for an election, or was exempt from approval at election as
19the result of statutory exclusions based on population of the
20city or amount of the issuance, and identification of issuances
21from the fiscal year or prior fiscal years related to the same
22project or purpose.
23 Sec. 24. Section 384.24, subsection 4, paragraph i, Code
242023, is amended by striking the paragraph.
25 Sec. 25. Section 384.24A, subsection 4, paragraph a,
26subparagraphs (1), (2), and (3), Code 2023, are amended to read
27as follows:
28(1) Four Five hundred twenty thousand dollars in a city
29having a population of five thousand or less.
30(2) Seven Nine hundred ten thousand dollars in a city having
31a population of more than five thousand but not more than
32seventy-five thousand.
33(3) One million three hundred thousand dollars in a city
34having a population of more than seventy-five thousand.
35 Sec. 26. Section 384.25, subsection 2, Code 2023, is amended
-18-1to read as follows:
22. Before the council may institute proceedings for the
3issuance of bonds for an essential corporate purpose, a notice
4of the proposed action, including a statement of the amount
5and purposes of the bonds, and an estimate of the annual
6increase in property taxes as the result of the bond issuance
7on a residential property with an actual value of one hundred
8thousand dollars, and the time and place of the meeting at
9which the council proposes to take action for the issuance of
10the bonds, must be published as provided in section 362.3.
11At the meeting, the council shall receive oral or written
12objections from any resident or property owner of the city.
13After all objections have been received and considered, the
14council may, at that meeting or any adjournment thereof, take
15additional action for the issuance of the bonds or abandon the
16proposal to issue the bonds. Any resident or property owner
17of the city may appeal the decision of the council to take
18additional action to the district court of the county in which
19any part of the city is located, within fifteen days after the
20additional action is taken, but the additional action of the
21council is final and conclusive unless the court finds that
22the council exceeded its authority. The provisions of this
23subsection with respect to notice, hearing, and appeal, are in
24lieu of the provisions contained in chapter 73A, or any other
25law.
26 Sec. 27. Section 384.26, subsection 2, Code 2023, is amended
27to read as follows:
282. a. The board shall publish notice of the proposal
29to issue the bonds, including a statement of the amount and
30purpose of the bonds, a statement of the estimated cost of the
31project for which the bonds are to be issued, and an estimate
32of the annual increase in property taxes as the result of
33the bond issuance on a residential property with an actual
34value of one hundred thousand dollars. The notice shall be
35published as provided in section 362.3 with the minutes of
-19-1the meeting at which the council adopts a resolution to call
2a special election to vote upon the question of issuing the
3bonds. The cost of the project, as published in the notice
4pursuant to this paragraph, is an estimate and is not intended
5to be binding on the board in later proceedings related to the
6project.
7b. Before the council may institute proceedings for the
8issuance of bonds for a general corporate purpose, it shall
9call a special city election to vote upon the question of
10issuing the bonds. At the election the proposition must be
11submitted in the following form:
12Shall the ............ (insert the name of the city) issue
13its bonds in an amount not exceeding the amount of $.... for
14the purpose of ..........?
15 Sec. 28. Section 384.26, subsection 5, paragraph a,
16subparagraphs (1), (2), and (3), Code 2023, are amended to read
17as follows:
18(1) In cities having a population of five thousand or less,
19in an amount of not more than four five hundred twenty thousand
20dollars.
21(2) In cities having a population of more than five thousand
22and not more than seventy-five thousand, in an amount of not
23more than seven nine hundred ten thousand dollars.
24(3) In cities having a population in excess of seventy-five
25thousand, in an amount of not more than one million three
26hundred thousand dollars.
27 Sec. 29. Section 384.110, Code 2023, is amended to read as
28follows:
29384.110 Insurance, self-insurance, and risk pooling funds.
30A city may credit funds to a fund or funds for the purposes
31authorized by section 364.4, subsection 5; section 384.12,
32subsection 17 3; or section 384.24, subsection 3, paragraph “s”.
33Moneys credited to the fund or funds, and interest earned on
34such moneys, shall remain in the fund or funds until expended
35for purposes authorized by section 364.4, subsection 5; section
-20-1384.12, subsection 17 3; or section 384.24, subsection 3,
2paragraph “s”.
3 Sec. 30. REPEAL. Section 384.8, Code 2023, is repealed.
4 Sec. 31. EFFECTIVE DATE. This division of this Act takes
5effect July 1, 2024.
6 Sec. 32. APPLICABILITY. This division of this Act applies
7to taxes and budgets for fiscal years beginning on or after
8July 1, 2024.
9DIVISION III
10public education and recreation tax levy
11 Sec. 33. Section 276.1, Code 2023, is amended to read as
12follows:
13276.1 Title.
14This section, sections 276.2 through 276.5, and sections
15276.8 through 276.11 276.10 of this chapter shall be known and
16may be cited as the “Iowa Community Education Act”.
17 Sec. 34. Section 276.3, unnumbered paragraph 1, Code 2023,
18is amended to read as follows:
19As used in sections 276.1, 276.2, this section, sections
20276.4, 276.5, and sections 276.8 through 276.11 276.10, unless
21the context otherwise requires:
22 Sec. 35. Section 276.10, subsection 1, Code 2023, is amended
23to read as follows:
241. The board of directors of a local school district
25may establish a community education program for schools in
26the district and provide for the general supervision of the
27program. Financial support for the program shall may be
28provided from funds raised pursuant to chapter 300 received by
29the school district under chapter 423F and from any private
30funds and any federal funds made available for the purpose of
31implementing this chapter. The program which recognizes that
32the schools belong to the people and which shall be centered
33in the schools may include but shall not be limited to the use
34of the school facilities day and night, year round including
35weekends and regular school vacation periods for educational,
-21-1recreational, cultural, and other community services and
2programs for all age, ethnic, and socioeconomic groups residing
3in the community.
4 Sec. 36. Section 278.1, subsection 1, paragraph e, Code
52023, is amended to read as follows:
6e. Direct the transfer of any surplus in the debt service
7fund, physical plant and equipment levy fund, or other capital
8project funds, or public education and recreation levy fund to
9the general fund.
10 Sec. 37. Section 298A.6, Code 2023, is amended to read as
11follows:
12298A.6 Public education and recreation levy fund.
13The public education and recreation levy fund is a special
14revenue fund. A public education and recreation levy fund
15must be established in any school corporation which levies
16 levied the tax authorized under section 300.2, Code 2023, or
17which receives received revenue from a chapter 28E agreement
18authorized under section 300.1, Code 2023. Moneys available in
19the fund at the conclusion of the fiscal year beginning July 1,
202026, and ending June 30, 2027, shall be expended by the school
21corporation for the purposes authorized under chapter 300, Code
222023.
23 Sec. 38. Section 300.2, Code 2023, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 4. a. A levy under this chapter shall not
26be approved by the voters on or after the effective date of
27this section of this division of this Act.
28b. If the levy has not been discontinued under section
29300.3, the authorization to impose the levy under this chapter
30shall terminate July 1, 2027.
31c. Notwithstanding subsection 2, including a proposition
32approved at an election held before the effective date of
33this section of this division of this Act, the rate of a levy
34imposed by a board of directors under this chapter for the
35fiscal year beginning July 1, 2026, shall not exceed one-half
-22-1of the levy rate imposed by the board of directors for the
2fiscal year beginning July 1, 2025.
3 Sec. 39. Section 423F.3, subsection 1, paragraph c, Code
42023, is amended by striking the paragraph.
5 Sec. 40. Section 423F.5, subsection 1, Code 2023, is amended
6to read as follows:
71. A school district shall include as part of its financial
8audit for the budget year beginning July 1, 2007, and for
9each subsequent budget year the amount received during the
10year pursuant to chapter 423E or this chapter, as applicable.
11In addition, the financial audit shall include the amount
12of bond levies, and physical plant and equipment levy, and
13public educational and recreational levy reduced as a result
14of the moneys received under chapter 423E or this chapter,
15as applicable. The amount of the reductions shall be stated
16in terms of dollars and cents per one thousand dollars of
17valuation and in total amount of property tax dollars. Also
18included shall be an accounting of the amount of moneys
19received which were spent for infrastructure purposes pursuant
20to chapter 423E or this chapter, as applicable.
21 Sec. 41. REPEAL. Sections 276.11 and 276.12, Code 2023,
22are repealed.
23 Sec. 42. REPEAL. Chapter 300, Code 2023, is repealed.
24 Sec. 43. EFFECTIVE DATE. Except as otherwise provided in
25this division of this Act, this division of this Act takes
26effect July 1, 2027.
27 Sec. 44. EFFECTIVE DATE. The following, being deemed of
28immediate importance, takes effect upon enactment:
29The section of this division of this Act enacting section
30300.2, subsection 4.
31 Sec. 45. APPLICABILITY. Except for the section of this
32division of this Act enacting section 300.2, subsection 4, this
33division of this Act applies to fiscal years beginning on or
34after July 1, 2027.
35DIVISION IV
-23-1BRUCELLOSIS AND TUBERCULOSIS ERADICATION FUND — LEVY
2 Sec. 46. Section 165.18, subsections 2 and 3, Code 2023, are
3amended by striking the subsections.
4 Sec. 47. Section 331.512, subsection 1, paragraph e, Code
52023, is amended by striking the paragraph.
6 Sec. 48. Section 331.559, subsection 2, Code 2023, is
7amended by striking the subsection.
8 Sec. 49. EFFECTIVE DATE. This division of this Act takes
9effect July 1, 2024.
10 Sec. 50. APPLICABILITY. This division of this Act applies
11to property taxes due and payable in fiscal years beginning on
12or after July 1, 2024.
13DIVISION V
14COUNTY SEATS
15 Sec. 51. Section 331.301, Code 2023, is amended by adding
16the following new subsection:
17 NEW SUBSECTION. 9A. Pursuant to the general grant of home
18rule power conferred by the Constitution of the State of Iowa
19and if not inconsistent with the laws of the general assembly,
20a county that has designated more than one city to be a county
21seat may consolidate or reduce the number of county seats by
22ordinance.
23 Sec. 52. REPEAL. 1848 Iowa Acts, First Extraordinary
24Session, chapter 52, is repealed.
25 Sec. 53. EFFECTIVE DATE. This division of this Act, being
26deemed of immediate importance, takes effect upon enactment.
27DIVISION VI
28COUNTY SHERIFF FEE REPORT
29 Sec. 54. Section 331.655, subsection 5, Code 2023, is
30amended by striking the subsection.
31DIVISION VII
32Homestead property tax credit
33 Sec. 55. Section 2.48, subsection 3, paragraph f,
34subparagraph (1), Code 2023, is amended to read as follows:
35(1) The homestead tax exemption and credit under chapter
-24-1425.
2 Sec. 56. Section 103.22, subsection 7, Code 2023, is amended
3to read as follows:
47. Prohibit an owner of property from performing work on the
5owner’s principal residence, if such residence is an existing
6dwelling rather than new construction and is not an apartment
7that is attached to any other apartment or building, as those
8terms are defined in section 499B.2, and is not larger than a
9single-family dwelling, or require such owner to be licensed
10under this chapter. In order to qualify for inapplicability
11pursuant to this subsection, a residence shall qualify for the
12homestead tax exemption credit.
13 Sec. 57. Section 105.11, subsection 3, Code 2023, is amended
14to read as follows:
153. Prohibit an owner of property from performing work on the
16owner’s principal residence, if such residence is an existing
17dwelling rather than new construction and is not larger than a
18single-family dwelling, or farm property, excluding commercial
19or industrial installations or installations in public use
20buildings or facilities, or require such owner to be licensed
21under this chapter. In order to qualify for inapplicability
22pursuant to this subsection, a residence shall qualify for the
23homestead tax exemption credit.
24 Sec. 58. Section 331.401, subsection 1, paragraphs e and f,
25Code 2023, are amended to read as follows:
26e. Adopt resolutions authorizing the county assessor
27to provide forms for homestead tax exemption and credit
28 claimants as provided in section 425.2 and military service tax
29exemptions as provided in section 426A.14.
30f. Examine and allow or disallow claims for homestead tax
31 exemption and credit in accordance with section 425.3 and
32claims for military service tax exemption in accordance with
33chapter 426A. The board, by a single resolution, may allow or
34disallow the exemptions recommended by the assessor.
35 Sec. 59. Section 331.512, subsection 3, Code 2023, is
-25-1amended to read as follows:
23. Carry out duties relating to the homestead tax exemption
3and credit and agricultural land tax credit as provided in
4chapters 425 and 426.
5 Sec. 60. Section 331.559, subsection 12, Code 2023, is
6amended to read as follows:
712. Carry out duties relating to the administration of
8the homestead tax exemption and credit and other credits as
9provided in sections 425.4, 425.5, 425.7, 425.9, 425.10, and
10425.25.
11 Sec. 61. NEW SECTION. 425.1A Homestead tax exemption.
121. The following exemptions from taxation shall be allowed
13in addition to the homestead credit for an owner that has
14attained the age of sixty-five years by January 1 of the
15assessment year:
16a. For the assessment year beginning January 1, 2024, the
17eligible homestead, not to exceed three thousand two hundred
18fifty dollars in taxable value.
19b. For the assessment year beginning January 1, 2025, and
20each succeeding assessment year, the eligible homestead, not to
21exceed six thousand five hundred dollars in taxable value.
222. Section 25B.7, subsection 1, shall not apply to the
23property tax exemption provided in this section.
24 Sec. 62. Section 425.2, Code 2023, is amended by adding the
25following new subsection:
26 NEW SUBSECTION. 3A. The form for claiming the credit shall
27also include the ability to claim the exemption under section
28425.1A for qualified owners. If the claim for the homestead
29credit is allowed, such allowance shall also include allowance
30of the homestead exemption if the owner meets the age criteria
31for the exemption. The homestead exemption shall be allowed
32for successive years without further filing in the same manner
33as the homestead credit.
34 Sec. 63. Section 425.3, subsection 4, Code 2023, is amended
35to read as follows:
-26- 14. The county auditor shall forward the claims to the board
2of supervisors. The board shall allow or disallow the claims.
3If the board disallows a claim, it shall send written notice,
4by mail, to the claimant at the claimant’s last known address.
5The notice shall state the reasons for disallowing the claim
6for the credit. The board is not required to send notice that
7a claim is disallowed if the claimant voluntarily withdraws the
8claim.
9 Sec. 64. Section 425.4, Code 2023, is amended to read as
10follows:
11425.4 Certification to treasurer.
12All claims which have been allowed by the board of
13supervisors shall be certified on or before August 1, in each
14year, by the county auditor to the county treasurer, which
15certificates shall list the total amount of dollars, listed by
16taxing district in the county, due for homestead tax exemptions
17and credits claimed and allowed. The county treasurer shall
18forthwith then certify to the department of revenue the total
19amount of dollars, listed by taxing district in the county, due
20for homestead tax exemptions and credits claimed and allowed.
21 Sec. 65. Section 425.6, Code 2023, is amended to read as
22follows:
23425.6 Waiver by neglect.
24If a person fails to file a claim or to have a claim on file
25with the assessor for the credits provided in this subchapter,
26the person is deemed to have waived the homestead exemption
27and credit for the year in which the person failed to file the
28claim or to have a claim on file with the assessor.
29 Sec. 66. Section 425.7, subsection 3, Code 2023, is amended
30to read as follows:
313. a. If the department of revenue determines that a claim
32for homestead exemption and credit has been allowed by the
33board of supervisors which is not justifiable under the law
34and not substantiated by proper facts, the department may, at
35any time within thirty-six months from July 1 of the year in
-27-1which the claim is allowed, set aside the allowance. Notice
2of the disallowance shall be given to the county auditor of
3the county in which the claim has been improperly granted and
4a written notice of the disallowance shall also be addressed
5to the claimant at the claimant’s last known address. The
6claimant or board of supervisors may appeal to the director
7of revenue within thirty days from the date of the notice of
8disallowance. The director shall grant a hearing and if, upon
9the hearing, the director determines that the disallowance was
10incorrect, the director shall set aside the disallowance. The
11director shall notify the claimant and the board of supervisors
12of the result of the hearing. The claimant or the board of
13supervisors may seek judicial review of the action of the
14director of revenue in accordance with chapter 17A.
15b. If a claim is disallowed by the department of revenue
16and not appealed to the director of revenue or appealed to
17the director of revenue and thereafter upheld upon final
18resolution, including any judicial review, any amounts of
19exemptions allowed and credits allowed and paid from the
20homestead credit fund including the penalty, if any, become a
21lien upon the property on which the exemption or credit was
22originally granted, if still in the hands of the claimant,
23and not in the hands of a bona fide purchaser, and any amount
24so erroneously paid including the penalty, if any, shall be
25collected by the county treasurer in the same manner as other
26taxes and the collections shall be returned to the department
27of revenue and credited to the homestead credit fund. The
28director of revenue may institute legal proceedings against a
29homestead credit claimant for the collection of payments made
30on disallowed credits and the penalty, if any. If a person
31makes a false claim or affidavit with fraudulent intent to
32obtain the homestead exemption or credit, the person is guilty
33of a fraudulent practice and the claim shall be disallowed
34in full. If the credit has been paid, the amount of the
35credit plus a penalty equal to twenty-five percent of the
-28-1amount of credit plus interest, at the rate in effect under
2section 421.7, from the time of payment shall be collected
3by the county treasurer in the same manner as other property
4taxes, penalty, and interest are collected and when collected
5shall be paid to the director of revenue. If a homestead
6exemption or credit is disallowed and the claimant failed to
7give written notice to the assessor as required by section
8425.2 when the property ceased to be used as a homestead by the
9claimant, a civil penalty equal to five percent of the amount
10of the disallowed exemption or credit is assessed against the
11claimant.
12 Sec. 67. Section 425.9, subsections 2, 3, and 4, Code 2023,
13are amended to read as follows:
142. If any claim for exemption or credit made hereunder
15 has been denied by the board of supervisors, and such action
16is subsequently reversed on appeal, the exemption or credit
17shall be allowed on the homestead involved in said appeal, and
18the director of revenue, the county auditor, and the county
19treasurer shall make such exemption or credit and change their
20books and records accordingly.
213. In the event the appealing taxpayer has paid one or both
22of the installments of the tax payable in the year or years in
23question on such homestead valuation, remittance shall be made
24to such taxpayer of the amount of such credit or exemption.
254. The amount of such credit shall be allocated and paid
26from the surplus redeposited in the homestead credit fund
27provided for in subsection 1. The amount of such exemption not
28covered by the credit shall be allowed as a credit on future
29taxes due and payable.
30 Sec. 68. Section 425.10, Code 2023, is amended to read as
31follows:
32425.10 Reversal of allowed claim.
33In the event any claim is allowed, and subsequently reversed
34on appeal, any exemption and credit made under the claim
35shall be void. The amount of the erroneous exemption and
-29-1 credit shall be charged against the property in question, and
2the director of revenue, the county auditor, and the county
3treasurer are authorized and directed to correct their books
4and records accordingly. The amount of the erroneous credit,
5when collected, shall be returned by the county treasurer to
6the homestead credit fund to be reallocated the following year
7as provided in this subchapter.
8 Sec. 69. Section 425.11, subsection 1, paragraph d,
9subparagraph (3), Code 2023, is amended to read as follows:
10(3) It must not embrace more than one dwelling house, but
11where a homestead has more than one dwelling house situated
12thereon, the exemption and credit provided for in this
13subchapter shall apply to the home and buildings used by the
14owner, but shall not apply to any other dwelling house and
15buildings appurtenant.
16 Sec. 70. Section 425.11, subsection 1, paragraph e, Code
172023, is amended to read as follows:
18e. “Owner” means the person who holds the fee simple
19title to the homestead, and in addition shall mean the person
20occupying as a surviving spouse or the person occupying under
21a contract of purchase which contract has been recorded in
22the office of the county recorder of the county in which the
23property is located; or the person occupying the homestead
24under devise or by operation of the inheritance laws where
25the whole interest passes or where the divided interest is
26shared only by persons related or formerly related to each
27other by blood, marriage or adoption; or the person occupying
28the homestead is a shareholder of a family farm corporation
29that owns the property; or the person occupying the homestead
30under a deed which conveys a divided interest where the divided
31interest is shared only by persons related or formerly related
32to each other by blood, marriage or adoption; or where the
33person occupying the homestead holds a life estate with the
34reversion interest held by a nonprofit corporation organized
35under chapter 504, provided that the holder of the life estate
-30-1is liable for and pays property tax on the homestead; or where
2the person occupying the homestead holds an interest in a
3horizontal property regime under chapter 499B, regardless
4of whether the underlying land committed to the horizontal
5property regime is in fee or as a leasehold interest, provided
6that the holder of the interest in the horizontal property
7regime is liable for and pays property tax on the homestead;
8or where the person occupying the homestead is a member of a
9community land trust as defined in 42 U.S.C. §12773, regardless
10of whether the underlying land is in fee or as a leasehold
11interest, provided that the member of the community land trust
12is occupying the homestead and is liable for and pays property
13tax on the homestead. For the purpose of this subchapter,
14the word “owner” shall be construed to mean a bona fide owner
15and not one for the purpose only of availing the person of
16the benefits of this subchapter. In order to qualify for the
17homestead tax exemption and credit, evidence of ownership shall
18be on file in the office of the clerk of the district court
19or recorded in the office of the county recorder at the time
20the owner files with the assessor a verified statement of the
21homestead claimed by the owner as provided in section 425.2.
22 Sec. 71. Section 425.12, Code 2023, is amended to read as
23follows:
24425.12 Indian land.
25Each forty acres of land, or fraction thereof, occupied by
26a member or members of the Sac and Fox Indians in Tama county,
27which land is held in trust by the secretary of the interior of
28the United States for said Indians, shall be given a homestead
29tax exemption and credit within the meaning and under the
30provisions of this subchapter. Application for such homestead
31tax exemption and credit shall be made to the county auditor of
32Tama county and may be made by a representative of the tribal
33council.
34 Sec. 72. Section 425.13, Code 2023, is amended to read as
35follows:
-31- 1425.13 Conspiracy to defraud.
2If any two or more persons conspire and confederate together
3with fraudulent intent to obtain the exemption or credit
4provided for under the terms of this subchapter by making a
5false deed, or a false contract of purchase, they are guilty of
6a fraudulent practice.
7 Sec. 73. Section 425.16, subsection 1, Code 2023, is amended
8to read as follows:
91. In addition to the homestead tax credit allowed under
10section 425.1, subsections 1 through 4, and the homestead
11exemption under section 425.lA, if applicable, persons who
12own or rent their homesteads and who meet the qualifications
13provided in this subchapter are eligible for a property
14tax credit for property taxes due or reimbursement of rent
15constituting property taxes paid.
16 Sec. 74. Section 425.17, subsections 4 and 8, Code 2023, are
17amended to read as follows:
184. “Homestead” means the dwelling owned or rented and
19actually used as a home by the claimant during the period
20specified in subsection 2, and so much of the land surrounding
21it including one or more contiguous lots or tracts of land,
22as is reasonably necessary for use of the dwelling as a home,
23and may consist of a part of a multidwelling or multipurpose
24building and a part of the land upon which it is built. It
25does not include personal property except that a manufactured
26or mobile home may be a homestead. Any dwelling or a part of
27a multidwelling or multipurpose building which is exempt from
28taxation, except for an exemption under section 425.1A, does
29not qualify as a homestead under this subchapter. However,
30solely for purposes of claimants living in a property and
31receiving reimbursement for rent constituting property taxes
32paid immediately before the property becomes tax exempt, and
33continuing to live in it after it becomes tax exempt, the
34property shall continue to be classified as a homestead.
35A homestead must be located in this state. When a person
-32-1is confined in a nursing home, extended-care facility, or
2hospital, the person shall be considered as occupying or living
3in the person’s homestead if the person is the owner of the
4homestead and the person maintains the homestead and does not
5lease, rent, or otherwise receive profits from other persons
6for the use of the homestead.
78. “Property taxes due” means property taxes including any
8special assessments, but exclusive of delinquent interest and
9charges for services, due on a claimant’s homestead in this
10state, but includes only property taxes for which the claimant
11is liable and which will actually be paid by the claimant.
12However, if the claimant is a person whose property taxes have
13been suspended under sections 427.8 and 427.9, “property taxes
14due” means property taxes including any special assessments,
15but exclusive of delinquent interest and charges for services,
16due on a claimant’s homestead in this state, but includes only
17property taxes for which the claimant is liable and which would
18have to be paid by the claimant if the payment of the taxes
19has not been suspended pursuant to sections 427.8 and 427.9.
20“Property taxes due” shall be computed with no deduction for
21any credit under this subchapter or for any homestead exemption
22under section 425.1A or credit allowed under section 425.1
23subchapter I. Each claim shall be based upon the taxes due
24during the fiscal year next following the base year. If a
25homestead is owned by two or more persons as joint tenants or
26tenants in common, and one or more persons are not members
27of claimant’s household, “property taxes due” is that part of
28property taxes due on the homestead which equals the ownership
29percentage of the claimant and the claimant’s household. The
30county treasurer shall include with the tax receipt a statement
31that if the owner of the property is eighteen years of age
32or over, the person may be eligible for the credit allowed
33under this subchapter. If a homestead is an integral part
34of a farm, the claimant may use the total property taxes due
35for the larger unit. If a homestead is an integral part of a
-33-1multidwelling or multipurpose building the property taxes due
2for the purpose of this subsection shall be prorated to reflect
3the portion which the value of the property that the household
4occupies as its homestead is to the value of the entire
5structure. For purposes of this subsection, “unit” refers to
6that parcel of property covered by a single tax statement of
7which the homestead is a part.
8 Sec. 75. Section 435.26, subsection 1, paragraph a, Code
92023, is amended to read as follows:
10a. A mobile home or manufactured home which is located
11outside a manufactured home community or mobile home park shall
12be converted to real estate by being placed on a permanent
13foundation and shall be assessed for real estate taxes. A
14home, after conversion to real estate, is eligible for the
15homestead tax exemption and credit and the military service
16tax exemption as provided in sections 425.2 and chapter 425,
17subchapter I, and section 426A.11. A taxable mobile home or
18manufactured home which is located outside of a manufactured
19home community or mobile home park as of January 1, 1995, is
20also exempt from the permanent foundation requirements of this
21chapter until the home is relocated.
22 Sec. 76. Section 435.26A, subsection 3, Code 2023, is
23amended to read as follows:
243. After the surrender of a manufactured home’s certificate
25of title under this section, the manufactured home shall
26continue to be taxed under section 435.22 and is not eligible
27for the homestead tax exemption and credit or the military
28service tax exemption and credit. A foreclosure action on a
29manufactured home whose title has been surrendered under this
30section shall be conducted as a real estate foreclosure. A tax
31lien and its priority shall remain the same on a manufactured
32home after its certificate of title has been surrendered.
33 Sec. 77. Section 499A.14, Code 2023, is amended to read as
34follows:
35499A.14 Taxation.
-34- 1The real estate shall be taxed in the name of the
2cooperative, and each member of the cooperative shall pay
3that member’s proportionate share of the tax in accordance
4with the proration formula set forth in the bylaws, and each
5member occupying an apartment as a residence shall receive
6that member’s proportionate homestead tax exemption and credit
7and each veteran of the military services of the United States
8identified as such under the laws of the state of Iowa or the
9United States shall receive as a credit that member’s veterans
10tax benefit as prescribed by the laws of the state of Iowa.
11 Sec. 78. EXISTING HOMESTEAD CLAIMS. Homestead credit
12claims approved under chapter 425, subchapter I, prior to and
13valid on the effective date of this division of this Act shall
14result in a homestead exemption under chapter 425, subchapter
15I, as enacted in this division of this Act, without further
16filing by the claimant if the claimant meets the criteria for
17the exemption and the assessor has appropriate information to
18verify such eligibility.
19 Sec. 79. APPLICABILITY. This division of this Act applies
20to assessment years beginning on or after January 1, 2024.
21DIVISION VIII
22ELDERLY PROPERTY TAX CREDIT
23 Sec. 80. Section 425.23, subsection 1, paragraph c,
24subparagraph (2), Code 2023, is amended to read as follows:
25(2) The difference between the actual amount of net
26 property taxes due on the homestead during the fiscal year next
27following the base year minus the actual amount of net property
28taxes due on the homestead during the first fiscal year for
29which the claimant filed a claim for a credit calculated under
30this paragraph “c” and for which the property taxes due on the
31homestead were calculated on an assessed valuation that was
32not a partial assessment and if the claimant has filed for the
33credit calculated under this paragraph “c” for each of the
34subsequent fiscal years after the first credit claimed.
35 Sec. 81. Section 425.23, subsection 2, Code 2023, is amended
-35-1to read as follows:
22. a. The Except as provided in paragraph “b”, the
3 actual credit for property taxes due shall be determined
4by subtracting from the tentative credit the amount of the
5homestead credit under section 425.1 which is allowed as a
6credit against property taxes due in the fiscal year next
7following the base year by the claimant or any person of
8the claimant’s household. If the subtraction produces a
9negative amount, there shall be no credit but no refund shall
10be required. The actual reimbursement for rent constituting
11property taxes paid shall be equal to the tentative
12reimbursement.
13b. If the claimant’s tentative credit is the amount
14determined under subsection 1, paragraph “c”, subparagraph (2),
15the actual credit amount shall be equal to the tentative credit
16amount.
17 Sec. 82. EFFECTIVE DATE. This division of this Act, being
18deemed of immediate importance, takes effect upon enactment.
19 Sec. 83. RETROACTIVE APPLICABILITY. This division of
20this Act applies retroactively to claims under chapter 425,
21subchapter II, filed on or after January 1, 2022.
22DIVISION IX
23MILITARY SERVICE PROPERTY TAX EXEMPTION AND CREDIT
24 Sec. 84. Section 25B.7, subsection 2, paragraph c, Code
252023, is amended by striking the paragraph.
26 Sec. 85. Section 426A.1A, Code 2023, is amended to read as
27follows:
28426A.1A Appropriation.
29There For each fiscal year beginning before July 1, 2025,
30there is appropriated from the general fund of the state the
31amounts necessary to fund the credits provided under this
32chapter.
33 Sec. 86. Section 426A.2, Code 2023, is amended to read as
34follows:
35426A.2 Military service tax credit.
-36- 1The For each fiscal year beginning before July 1, 2025, the
2 moneys appropriated under section 426A.1A shall be apportioned
3each year so as to replace all or a portion of the tax which
4would be due on property eligible for military service tax
5exemption in the state, if the property were subject to
6taxation, the amount of the credit to be not more than six
7dollars and ninety-two cents per thousand dollars of assessed
8value of property which would be subject to the tax, except for
9the military service tax exemption.
10 Sec. 87. Section 426A.11, subsections 1 and 2, Code 2023,
11are amended to read as follows:
121. The property, not to exceed two thousand seven hundred
13seventy-eight dollars in taxable value for assessment years
14beginning before January 1, 2024, of any veteran, as defined in
15section 35.1, of World War I.
162. a. The property, not to exceed one thousand eight
17hundred fifty-two dollars in taxable value for assessment years
18beginning before January 1, 2024, of an honorably separated,
19retired, furloughed to a reserve, placed on inactive status,
20or discharged veteran, as defined in section 35.1, subsection
212, paragraph “a” or “b”.
22b. The property, not to exceed four thousand dollars in
23taxable value for the assessment years beginning on or after
24January 1, 2024, of an honorably separated, retired, furloughed
25to a reserve, placed on inactive status, or discharged veteran,
26as defined in section 35.1, subsection 2, paragraph “a” or “b”.
27 Sec. 88. IMPLEMENTATION. Section 25B.7, subsection 1,
28shall not apply to the property tax exemption provided in this
29Act.
30 Sec. 89. APPLICABILITY. This division of this Act applies
31to assessment years beginning on or after January 1, 2024.
32DIVISION X
33Property tax benefits and incentives
34 Sec. 90. NEW SECTION. 404.3C Assessment agreements —
35commercial property.
-37- 11. For revitalization areas established under this chapter
2on or after the effective date of this division of this Act
3and for first-year exemption applications for property located
4in a revitalization area in existence on the effective date
5of this division of this Act filed on or after the effective
6date of this division of this Act, commercial property shall
7not receive a tax exemption under this chapter unless the city
8or county, as applicable, and the owner of the qualified real
9estate enter into a written assessment agreement specifying a
10minimum actual value until a specified termination date for the
11duration of the exemption period.
122. a. The assessment agreement shall be presented to the
13appropriate assessor. The assessor shall review the plans and
14specifications for the improvements to be made to the property
15and if the minimum actual value contained in the assessment
16agreement appears to be reasonable, the assessor shall execute
17the following certification upon the agreement:
18 The undersigned assessor, being legally responsible for the
19assessment of the above described property upon completion of
20the improvements to be made on it, certifies that the actual
21value assigned to that land and improvements upon completion
22shall not be less than $.........
23b. The assessment agreement with the certification of
24the assessor and a copy of this subsection shall be filed in
25the office of the county recorder of the county where the
26property is located. Upon completion of the improvements,
27the assessor shall value the property as required by law,
28except that the actual value shall not be less than the minimum
29actual value contained in the assessment agreement. This
30subsection does not prohibit the assessor from assigning a
31higher actual value to the property or prohibit the owner
32from seeking administrative or legal remedies to reduce the
33actual value assigned except that the actual value shall not
34be reduced below the minimum actual value contained in the
35assessment agreement. An assessor, county auditor, board of
-38-1review, director of revenue, or court of this state shall not
2reduce or order the reduction of the actual value below the
3minimum actual value in the agreement during the term of the
4agreement regardless of the actual value which may result from
5the incomplete construction of improvements, destruction or
6diminution by any cause, insured or uninsured, except in the
7case of acquisition or reacquisition of the property by a
8public entity. Recording of an assessment agreement complying
9with this subsection constitutes notice of the assessment
10agreement to a subsequent purchaser or encumbrancer of the land
11or any part of it, whether voluntary or involuntary, and is
12binding upon a subsequent purchaser or encumbrancer.
13 Sec. 91. NEW SECTION. 404.3D Exemptions for residential
14property.
15For revitalization areas established under this chapter on
16or after the effective date of this division of this Act and
17for first-year exemption applications for property located in a
18revitalization area in existence on the effective date of this
19division of this Act filed on or after the effective date of
20this division of this Act, an exemption authorized under this
21chapter for property that is residential property shall not
22apply to property tax levies imposed by a school district.
23 Sec. 92. EFFECTIVE DATE. This division of this Act takes
24effect July 1, 2024.
25DIVISION XI
26transit funding
27 Sec. 93. Section 364.2, subsection 4, paragraph f,
28subparagraph (1), subparagraph division (b), Code 2023, is
29amended to read as follows:
30(b) For franchise fees assessed and collected during fiscal
31years beginning on or after July 1, 2013 2024, but before
32July 1, 2030, by a city that is the subject of a judgment,
33court-approved settlement, or court-approved compromise
34providing for payment of restitution, a refund, or a return
35described in section 384.3A, subsection 3, paragraph “j” with
-39-1a population exceeding two hundred thousand, the rate of the
2franchise fee shall not exceed seven and one-half percent
3of gross revenues generated from sales of the franchisee in
4the city, and franchise fee amounts assessed and collected
5during such fiscal years in excess of five percent of gross
6revenues generated from sales shall be used solely for the
7purpose specified in section 384.3A, subsection 3, paragraph
8“j”. A city may assess and collect a franchise fee in excess
9of five percent of gross revenues generated from the sales
10of the franchisee pursuant to this subparagraph division (b)
11for a period not to exceed seven consecutive fiscal years
12once the franchise fee is first imposed at a rate in excess
13of five percent. An ordinance increasing the franchise fee
14rate to greater than five percent pursuant to this subparagraph
15division (b) shall not become effective unless approved at
16an election. After passage of the ordinance, the council
17shall submit the proposal at a special election held on a date
18specified in section 39.2, subsection 4, paragraph “b”. If a
19majority of those voting on the proposal approves the proposal,
20the city may proceed as proposed. The complete text of the
21ordinance shall be included on the ballot and the full text
22of the ordinance posted for the voters pursuant to section
2352.25. All absentee voters shall receive the full text of the
24ordinance along with the absentee ballot. This subparagraph
25division (b) is repealed July 1, 2030.
26 Sec. 94. Section 384.3A, subsection 3, paragraph j, Code
272023, is amended to read as follows:
28j. For franchise fees assessed and collected by a city in
29excess of five percent of gross revenues generated from sales
30of the franchisee within the city pursuant to section 364.2,
31subsection 4, paragraph “f”, subparagraph (1), subparagraph
32division (b), during fiscal years beginning on or after July 1,
332013 2024, but before July 1, 2030, the adjustment, renewal,
34or extension of any part or all of the legal indebtedness of
35a city, whether evidenced by bonds, warrants, court-approved
-40-1settlements, court-approved compromises, or judgments, or the
2funding or refunding of the same, if such legal indebtedness
3relates to restitution, a refund, or a return ordered by a
4court of competent jurisdiction for franchise fees assessed
5and collected by the city before June 20, 2013 solely for the
6reduction of property tax levies that support the operation and
7maintenance of a municipal transit system or a regional transit
8district or to maintain transportation service levels of a
9municipal transit system or a regional transit district. This
10paragraph “j” is repealed July 1, 2030.
11 Sec. 95. EFFECTIVE DATE. This division of this Act takes
12effect July 1, 2024.
13DIVISION XII
14COUNTY AUDITOR VALUATION REPORTS
15 Sec. 96. Section 331.510, subsections 3 and 4, Code 2023,
16are amended to read as follows:
173. An annual report not later than January 1 to the
18department of management of the valuation by class of property
19for each taxing district in the county on forms provided by the
20department of management. The valuations reported shall be
21those valuations used for determining the levy rates necessary
22to fund the budgets of the taxing districts for the following
23fiscal year. Each annual report under this subsection for
24assessment years beginning on or after January 1, 2024,
25shall distinguish such values as revaluation or other type of
26addition to value, as defined and submitted in the assessor’s
27abstract transmitted to the department of revenue under section
28441.45.
294. An annual report not later than January 1 to the
30governing body of each taxing district in the county of the
31assessed valuations of taxable property in the taxing district
32as reported to the department of management. Each annual
33report under this subsection for assessment years beginning
34on or after January 1, 2024, shall distinguish such values as
35revaluation or other type of addition to value, as defined
-41-1and submitted in the assessor’s abstract transmitted to the
2department of revenue under section 441.45.
3DIVISION XIII
4local government budgets and taxpayer statements
5 Sec. 97. NEW SECTION. 24.2A Budget statements to owners
6and taxpayers.
71. For purposes of this section only:
8a. “Budget year” is the fiscal year beginning during the
9calendar year in which a budget is certified.
10b. “Current fiscal year” is the fiscal year ending during
11the calendar year in which a budget for the budget year is
12certified.
13c. “Effective property tax rate” means the property tax rate
14per one thousand dollars of assessed value and is equal to
15one thousand multiplied by the quotient of the current fiscal
16year’s actual property tax dollars certified for levy divided
17by the total assessed value used to calculate taxes for the
18budget year.
19d. “Political subdivision” means a school district, a
20county, or a city.
212. a. On or before February 27 of each year, each political
22subdivision shall file with the county auditor a report
23containing all necessary information for the county auditor to
24calculate amounts required to be included in the statements
25mailed under paragraph “b”.
26b. Not later than March 1, the county auditor shall compile
27all required information from all reports received and send to
28each property owner or taxpayer within the county by regular
29mail an individual statement containing all of the following
30for each of the political subdivisions comprising the owner’s
31or taxpayer’s taxing district:
32(1) The sum of the current fiscal year’s actual property
33taxes certified for levy for all of the political subdivision’s
34levies and the combined property tax rate per one thousand
35dollars for such tax amount for the current fiscal year.
-42- 1(2) The combined effective property tax rate for the
2political subdivision calculated using the sum of the current
3fiscal year’s actual property taxes certified for levy for all
4of the political subdivision’s levies under subparagraph (1).
5(3) The combined amount of the proposed property tax dollars
6to be certified for all of the political subdivision’s levies
7for the budget year and the proposed combined property tax rate
8per one thousand dollars for such levies.
9(4) If the proposed property tax dollars specified
10under subparagraph (3) exceeds the current fiscal year’s
11actual property tax dollars certified for levy specified in
12subparagraph (1), a detailed statement of the major reasons for
13the increase, including the specific purposes or programs for
14which the political subdivision is proposing an increase.
15(5) An example comparing the amount of property taxes on
16a residential property with an actual value of one hundred
17thousand dollars in the current fiscal year and such amount
18on the residential property using the proposed property
19tax dollars for the budget year, including the percentage
20difference in such amounts.
21(6) An example comparing the amount of property taxes
22on a commercial property with an actual value of one hundred
23thousand dollars in the current fiscal year and such amount on
24the commercial property using the proposed property tax dollars
25for the budget year, including the percentage difference in
26such amounts.
27(7) The political subdivision’s percentage of total
28property taxes certified for levy in the owner’s or taxpayer’s
29taxing district in the current fiscal year among all taxing
30authorities.
31(8) The date, time, and location of the political
32subdivision’s public hearing required under subsection 4.
33(9) Information on how to access on the political
34subdivision’s internet site the political subdivision’s
35statements under this section and other budget documents for
-43-1prior fiscal years.
2c. Proof of mailing shall be maintained by the county
3auditor.
43. The department of management shall prescribe the form for
5the report required under subsection 2, paragraph “a”, and the
6statements required to be mailed under subsection 2, paragraph
7“b”.
84. a. Each political subdivision shall set a time and place
9for a public hearing on the political subdivision’s proposed
10property tax amount for the budget year and the political
11subdivision’s information included in the statements under
12subsection 2. The date of the political subdivision’s public
13hearing shall not be on the same date of the public hearing
14under this section of another political subdivision with which
15the political subdivision shares territory. At the hearing,
16the governing body of the political subdivision shall receive
17oral or written testimony from any resident or property owner
18of the political subdivision. This public hearing shall be
19separate from any other meeting of the governing body of the
20political subdivision, including any other meeting or public
21hearing relating to the political subdivision’s budget, and
22other business of the political subdivision that is not related
23to the proposed property tax amounts and the information in the
24statements shall not be conducted at the public hearing. After
25all testimony has been received and considered, the governing
26body may decrease, but not increase, the proposed property tax
27amount to be included in the political subdivision’s budget.
28b. The political subdivision shall also publish notice
29of the hearing not less than ten nor more than twenty days
30prior to the hearing in a newspaper published in the political
31subdivision, if any, and if not, then in a newspaper of general
32circulation in the political subdivision.
33c. Notice of the hearing shall also be posted and clearly
34identified on the political subdivision’s internet site
35for public viewing beginning on the date of the newspaper
-44-1publication and shall be maintained on the political
2subdivision’s internet site with all such prior year notices
3and copies of the statements mailed under subsection 2.
4Additionally, if the political subdivision maintains a social
5media account on one or more social media applications, the
6public hearing notice or an electronic link to the public
7hearing notice shall be posted on each such account on the same
8day as the publication of the notice.
9 Sec. 98. Section 24.3, unnumbered paragraph 1, Code 2023,
10is amended to read as follows:
11A municipality shall not certify or levy in any fiscal year
12any tax on property subject to taxation unless and until the
13following estimates have been made, filed, and considered,
14and for school districts, the individual statements have been
15mailed and public hearings held, as provided in this chapter:
16 Sec. 99. Section 24.10, Code 2023, is amended to read as
17follows:
1824.10 Levies void.
19The verified proof of the publication of the notice
20under section 24.9 shall be filed and verified proof of the
21mailing of individual statements under section 24.2A shall be
22established in the office of the county auditor and preserved
23by the auditor. A levy shall not be valid unless and until
24that notice is such notices are published, mailed, and filed.
25However, failure of an owner or taxpayer to receive a statement
26under section 24.2A shall not invalidate a levy.
27 Sec. 100. Section 24.17, subsection 1, Code 2023, is amended
28to read as follows:
291. The local budgets of the various political subdivisions
30shall be certified by the chairperson of the certifying board
31or levying board, as the case may be, in duplicate to the
32county auditor not later than March 15 of each year on forms,
33and pursuant to instructions, prescribed by the department
34of management. However, if the political subdivision is a
35county, or a city, its budget shall be certified not later than
-45-1March 31 of each year, and if the political subdivision is or a
2school district, as defined in section 257.2, its budget shall
3be certified not later than April 15 of each year.
4 Sec. 101. Section 24.27, subsection 1, Code 2023, is amended
5to read as follows:
61. Not later than March 25, or April 10 for a county or a
7city, or April 25 if the municipality is a county, city, or
8 school district, a number of persons in any municipality equal
9to one-fourth of one percent of those voting for the office of
10governor, at the last general election in the municipality,
11but the number shall not be less than ten, and the number
12need not be more than one hundred persons, who are affected
13by any proposed budget, expenditure or tax levy, or by any
14item thereof, may appeal from any decision of the certifying
15board or the levying board by filing with the county auditor
16of the county in which the municipal corporation is located, a
17written protest setting forth their objections to the budget,
18expenditure or tax levy, or to one or more items thereof, and
19the grounds for their objections. If a budget is certified
20after March 15, or March 31 in the case of a county or a city,
21 or April 15 in the case of a county, city, or school district,
22all appeal time limits shall be extended to correspond to
23allowances for a timely filing.
24 Sec. 102. Section 24.48, subsection 4, Code 2023, is amended
25to read as follows:
264. The city finance committee shall have officially
27notified any city of its approval, modification or rejection
28of the city’s appeal of the decision of the director of the
29department of management regarding a city’s request for a
30suspension of the statutory property tax levy limitation prior
31to thirty-five days before March 31 April 15.
32 Sec. 103. Section 331.422, unnumbered paragraph 1, Code
332023, is amended to read as follows:
34Subject to this section and sections 331.423 through 331.426
35or as otherwise provided by state law, the board of each county
-46-1shall certify property taxes annually at its March April
2 session to be levied for county purposes as follows:
3 Sec. 104. Section 331.434, unnumbered paragraph 1, Code
42023, is amended to read as follows:
5Annually, the board of each county, subject to section
6331.403, subsection 4, sections 331.423 through 331.426,
7section 331.433A, the applicable portions of chapter 24, and
8other applicable state law, shall prepare and adopt a budget,
9certify taxes, and provide appropriations as follows:
10 Sec. 105. Section 331.434, subsection 3, Code 2023, is
11amended to read as follows:
123. Following, and not until, adoption of the resolution
13under section 331.433A, the requirements of section 24.2A are
14completed, the board shall set a time and place for a public
15hearing on the budget before the final certification date and
16shall publish notice of the hearing not less than ten nor more
17than twenty days prior to the hearing in the county newspapers
18selected under chapter 349. A summary of the proposed budget
19and a description of the procedure for protesting the county
20budget under section 331.436, in the form prescribed by the
21director of the department of management, shall be included
22in the notice. Proof of publication of the notice under this
23subsection 3 and a copy of the resolution adopted under section
24331.433A shall be filed with and preserved by the county
25 auditor. A levy is not valid unless and until the notice is
26published and the notice and resolution adopted under section
27331.433A are filed individual statements under section 24.2A
28are mailed. The department of management shall prescribe the
29form for the public hearing notice for use by counties.
30 Sec. 106. Section 331.434, subsection 5, paragraph a, Code
312023, is amended to read as follows:
32a. After the hearing, the board shall adopt by resolution
33a budget and certificate of taxes for the next fiscal year
34and shall direct the auditor to properly certify and file the
35budget and certificate of taxes as adopted. The board shall
-47-1not adopt a tax in excess of the estimate published or the
2applicable amounts specified in the resolution adopted under
3section 331.433A, except a tax which is approved by a vote of
4the people, and a greater tax than that adopted shall not be
5levied or collected. A county budget and certificate of taxes
6adopted for the following fiscal year becomes effective on the
7first day of that year.
8 Sec. 107. Section 331.434, subsection 7, Code 2023, is
9amended to read as follows:
107. Taxes levied by a county whose budget is certified after
11March 31 April 15 shall be limited to the prior year’s budget
12amount. However, this penalty may be waived by the director
13of the department of management if the county demonstrates
14that the March 31 deadline was missed because of circumstances
15beyond the control of the county.
16 Sec. 108. Section 331.435, subsection 2, Code 2023, is
17amended to read as follows:
182. The board shall prepare and adopt a budget amendment in
19the same manner as the original budget as provided in section
20331.434, but excluding the requirements for adoption of the
21resolution under section 331.433A mailing individual statements
22under section 24.2A, and the amendment is subject to protest as
23provided in section 331.436, except that the director of the
24department of management may by rule provide that amendments
25of certain types or up to certain amounts may be made without
26public hearing and without being subject to protest. A county
27budget for the ensuing fiscal year shall be amended by May 31
28to allow time for a protest hearing to be held and a decision
29rendered before June 30. An amendment of a budget after May
3031 which is properly appealed but without adequate time for
31hearing and decision before June 30 is void.
32 Sec. 109. Section 331.436, Code 2023, is amended to read as
33follows:
34331.436 Protest.
35Protests to the adopted budget must be made in accordance
-48-1with sections 24.27 through 24.32 as if the county were the
2municipality under those sections except that the protest must
3be filed no later than April 10 25 and the number of people
4necessary to file a protest under this section shall not be
5less than one hundred.
6 Sec. 110. Section 384.2, subsection 1, Code 2023, is amended
7to read as follows:
81. Except as otherwise provided for special charter cities,
9a city’s fiscal year shall be as provided in section 24.2,
10subsection 3. All city property taxes must be certified by
11a city to the county auditor on or before March 31 April
1215 of each year, unless otherwise provided by state law.
13However, municipal utilities, if not supported by taxation
14or the proceeds of outstanding indebtedness payable from
15taxes may, with the council’s consent, choose to operate on a
16fiscal year which is the calendar year. The receipt by the
17utility of payments from other governmental funds for public
18fire protection, street lighting, or other public use of the
19utility’s services shall not be deemed support by taxation.
20After notice and hearing in the same manner as required for the
21city’s regular budget under section 384.16, the utility budget
22must be approved by resolution of the council not later than
23twenty days prior to the beginning of the calendar year for
24which the budget applies.
25 Sec. 111. Section 384.16, unnumbered paragraph 1, Code
262023, is amended to read as follows:
27Annually, a city that has satisfied the requirements of
28section 384.15A and section 384.22, subsection 3, and the
29applicable portions of chapter 24, shall prepare and adopt a
30budget, and shall certify taxes as follows:
31 Sec. 112. Section 384.16, subsections 3, 5, and 6, Code
322023, are amended to read as follows:
333. Following, and not until, adoption of the resolution
34under section 384.15A, requirements of section 24.2A are
35completed, the council shall set a time and place for public
-49-1hearing on the budget before the final certification date and
2shall publish notice of the hearing not less than ten nor more
3than twenty days before the hearing in a newspaper published
4at least once weekly and having general circulation in the
5city. However, if the city has a population of two hundred
6or less, publication may be made by posting in three public
7places in the city. A summary of the proposed budget and a
8description of the procedure for protesting the city budget
9under section 384.19, in the form prescribed by the director of
10the department of management, shall be included in the notice.
11Proof of publication of the notice under this subsection 3 and
12a copy of the resolution adopted under section 384.15A must be
13filed with the county auditor. The department of management
14shall prescribe the form for the public hearing notice for use
15by cities.
165. After the hearing, the council shall adopt by resolution
17a budget for at least the next fiscal year, and the clerk
18shall certify the necessary tax levy for the next fiscal year
19to the county auditor and the county board of supervisors.
20The tax levy certified may be less than but not more than
21the amount estimated in the proposed budget submitted at
22the final hearing or the applicable amount specified in the
23resolution adopted under section 384.15A, unless an additional
24tax levy is approved at a city election. Two copies each of
25the detailed budget as adopted and of the tax certificate must
26be transmitted to the county auditor, who shall complete the
27certificates and transmit a copy of each to the department of
28management.
296. Taxes levied by a city whose budget is certified after
30March 31 April 15 shall be limited to the prior year’s budget
31amount. However, this penalty may be waived by the director of
32the department of management if the city demonstrates that the
33March 31 deadline was missed because of circumstances beyond
34the control of the city.
35 Sec. 113. Section 384.17, Code 2023, is amended to read as
-50-1follows:
2384.17 Levy by county.
3At the time required by law, the county board of supervisors
4shall levy the taxes necessary for each city fund for the
5following fiscal year. The levy must be as shown in the
6adopted city budget and as certified by the clerk, subject to
7any changes made after a protest hearing, and any additional
8tax rates approved at a city election. A city levy is not valid
9until proof of publication or posting of notice of a budget
10hearing under section 384.16, subsection 3, and the notice and
11resolution adopted under section 384.15A are is filed with
12the county auditor and individual statements are mailed under
13section 24.2A.
14 Sec. 114. Section 384.18, subsection 2, Code 2023, is
15amended to read as follows:
162. A budget amendment must be prepared and adopted in the
17same manner as the original budget, as provided in section
18384.16, excluding the requirement for the mailing of individual
19statements under section 24.2A, and is subject to protest as
20provided in section 384.19, except that the committee may by
21rule provide that amendments of certain types or up to certain
22amounts may be made without public hearing and without being
23subject to protest. A city budget shall be amended by May
2431 of the current fiscal year to allow time for a protest
25hearing to be held and a decision rendered before June 30. The
26amendment of a budget after May 31, which is properly appealed
27but without adequate time for hearing and decision before June
2830 is void.
29 Sec. 115. REPEAL. Sections 331.433A and 384.15A, Code 2023,
30are repealed.
31 Sec. 116. IMPLEMENTATION. Section 25B.2, subsection 3,
32shall not apply to this division of this Act.
33 Sec. 117. APPLICABILITY. This division of this Act applies
34to school district, county, and city budgets for fiscal years
35beginning on or after July 1, 2024.
-51-1DIVISION XIV
2DRIVER’S LICENSES AND NONOPERATOR’S IDENTIFICATION CARDS
3 Sec. 118. Section 321M.9, subsection 1, paragraph a, Code
42023, is amended by adding the following new subparagraph:
5 NEW SUBPARAGRAPH. (4) The ten-dollar convenience fee
6collected pursuant to subsection 1A.
7 Sec. 119. Section 321M.9, Code 2023, is amended by adding
8the following new subsection:
9 NEW SUBSECTION. 1A. Convenience fee. A county authorized
10to issue driver’s licenses under this chapter may charge, in
11addition to any other fee imposed by law, a convenience fee for
12the issuance or renewal of a driver’s license or nonoperator’s
13identification card to a person who is not a resident of the
14county, unless that person pays property tax to the county
15and provides proof of payment such as a receipt as provided
16in section 445.5, subsection 6, or another form of proof as
17determined by the county. The convenience fee shall be ten
18dollars.
19DIVISION XV
20writing fees
21 Sec. 120. Section 321G.27, subsection 1, paragraphs a, b,
22and c, Code 2023, are amended by striking the paragraphs.
23 Sec. 121. Section 321G.27, subsection 1, Code 2023, is
24amended by adding the following new paragraph:
25 NEW PARAGRAPH. 0d. The county recorder shall collect
26a writing fee of two dollars for each privilege under this
27chapter.
28 Sec. 122. Section 321G.29, subsection 3, Code 2023, is
29amended to read as follows:
303. An owner of a snowmobile shall apply to the county
31recorder for issuance of a certificate of title within thirty
32days after acquisition. The application shall be on forms
33the department prescribes and accompanied by the required fee
34specified in section 321G.30 and the writing fee specified in
35section 321G.27. The application shall include a certification
-52-1signed in writing containing substantially the representation
2that statements made are true and correct to the best of the
3applicant’s knowledge, information, and belief, under penalty
4of perjury. The application shall contain the date of sale
5and gross price of the snowmobile or the fair market value if
6no sale immediately preceded the transfer and any additional
7information the department requires. If the application is
8made for a snowmobile last previously registered or titled in
9another state or foreign country, the application shall contain
10this information and any other information the department
11requires.
12 Sec. 123. Section 321G.31, Code 2023, is amended to read as
13follows:
14321G.31 Transfer or repossession by operation of law.
151. If ownership of a snowmobile is transferred by
16operation of law, such as by inheritance, order in bankruptcy,
17insolvency, replevin, or execution sale, the transferee, within
18thirty days after acquiring the right to possession of the
19snowmobile, shall mail or deliver to the county recorder of
20the transferee’s county of residence satisfactory proof of
21ownership as the county recorder requires, together with an
22application for a new certificate of title, and the required
23fee, plus the writing fee specified in section 321G.27.
24However, if the transferee is the surviving spouse of the
25deceased owner, the county recorder shall waive the required
26fee fees.
272. If a lienholder repossesses a snowmobile by operation of
28law and holds it for resale, the lienholder shall secure a new
29certificate of title and shall pay the required fee, plus the
30writing fee specified in section 321G.27.
31 Sec. 124. Section 321G.32, subsection 1, Code 2023, is
32amended by adding the following new paragraph:
33 NEW PARAGRAPH. c. The application shall be accompanied by
34the writing fee specified in section 321G.27.
35 Sec. 125. Section 321I.29, subsection 1, paragraphs a, b,
-53-1and c, Code 2023, are amended by striking the paragraphs.
2 Sec. 126. Section 321I.29, subsection 1, Code 2023, is
3amended by adding the following new paragraph:
4 NEW PARAGRAPH. 0d. The county recorder shall collect
5a writing fee of two dollars for each privilege under this
6chapter.
7 Sec. 127. Section 321I.31, subsection 3, Code 2023, is
8amended to read as follows:
93. An owner of an all-terrain vehicle shall apply to
10the county recorder for issuance of a certificate of title
11within thirty days after acquisition. The application shall
12be on forms the department prescribes and accompanied by the
13required fee specified in section 321I.32 and the writing fee
14specified in section 321I.29. The application shall include a
15certification signed in writing containing substantially the
16representation that statements made are true and correct to the
17best of the applicant’s knowledge, information, and belief,
18under penalty of perjury. The application shall contain the
19date of sale and gross price of the all-terrain vehicle or the
20fair market value if no sale immediately preceded the transfer
21and any additional information the department requires. If the
22application is made for an all-terrain vehicle last previously
23registered or titled in another state or foreign country,
24the application shall contain this information and any other
25information the department requires.
26 Sec. 128. Section 321I.33, Code 2023, is amended to read as
27follows:
28321I.33 Transfer or repossession by operation of law.
291. If ownership of an all-terrain vehicle is transferred by
30operation of law, such as by inheritance, order in bankruptcy,
31insolvency, replevin, or execution sale, the transferee,
32within thirty days after acquiring the right to possession of
33the all-terrain vehicle, shall mail or deliver to the county
34recorder of the transferee’s county of residence satisfactory
35proof of ownership as the county recorder requires, together
-54-1with an application for a new certificate of title, and
2the required fee, plus the writing fee specified in section
3321I.29. However, if the transferee is the surviving spouse
4of the deceased owner, the county recorder shall waive the
5required fee fees.
62. If a lienholder repossesses an all-terrain vehicle by
7operation of law and holds it for resale, the lienholder shall
8secure a new certificate of title and shall pay the required
9fee, plus the writing fee specified in section 321I.29.
10 Sec. 129. Section 321I.34, subsection 1, Code 2023, is
11amended by adding the following new paragraph:
12 NEW PARAGRAPH. c. The application shall be accompanied by
13the writing fee specified in section 321I.29.
14 Sec. 130. Section 462A.53, Code 2023, is amended to read as
15follows:
16462A.53 Amount of writing fees.
17A writing fee of one dollar and twenty-five cents two dollars
18 for each privilege shall be collected by the county recorder.
19 Sec. 131. Section 462A.77, subsection 4, Code 2023, is
20amended to read as follows:
214. Every owner of a vessel subject to titling under this
22chapter shall apply to the county recorder for issuance of a
23certificate of title for the vessel within thirty days after
24acquisition. The application shall be on forms the department
25prescribes, and accompanied by the required fee specified
26in section 462A.78 and the writing fee specified in section
27462A.53. The application shall be signed and shall include a
28certification signed in writing containing substantially the
29representation that statements made are true and correct to the
30best of the applicant’s knowledge, information, and belief,
31under penalty of perjury. The application shall contain
32the date of sale and gross price of the vessel or the fair
33market value if no sale immediately preceded the transfer, and
34any additional information the department requires. If the
35application is made for a vessel last previously registered or
-55-1titled in another state or foreign country, it shall contain
2this information and any other information the department
3requires.
4 Sec. 132. Section 462A.82, subsections 1 and 2, Code 2023,
5are amended to read as follows:
61. If ownership of a vessel is transferred by operation of
7law, such as by inheritance, order in bankruptcy, insolvency,
8replevin, execution sale, or in compliance with section 578A.7,
9the transferee, within thirty days after acquiring the right
10to possession of the vessel by operation of law, shall mail or
11deliver to the county recorder satisfactory proof of ownership
12as the county recorder requires, together with an application
13for a new certificate of title, and the required fee, plus the
14writing fee specified in section 462A.53. However, if the
15transferee is the surviving spouse of the deceased owner, the
16county recorder shall waive the required fee fees. A title tax
17is not required on these transactions.
182. If a lienholder repossesses a vessel by operation of
19law and holds it for resale, the lienholder shall secure a new
20certificate of title and shall pay the required fee, plus the
21writing fee specified in section 462A.53.
22 Sec. 133. Section 462A.84, subsection 1, Code 2023, is
23amended by adding the following new paragraph:
24 NEW PARAGRAPH. c. The application shall be accompanied by
25the writing fee specified in section 462A.53.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to local government property taxes,
30financial authority, and budgets, requires certain information
31related to property taxation to be provided to property
32owners and taxpayers, modifies provisions relating to fees
33for driver’s licenses and nonoperator’s identification cards,
34modifying provisions relating to certain writing fees, and
35modifies certain transit funding, property tax credits and
-56-1exemptions, and appropriations.
2DIVISION I — COUNTY PROPERTY TAXES AND BUDGETS. Code
3section 331.301(10) governs a county’s authority to enter into
4leases and lease-purchase contracts and, in part, subjects
5leases and lease-purchase agreements for real property to
6procedures for approval at an election following a petition
7if the principal amount of the contract exceeds specified
8thresholds categorized by county population. The bill
9increases the thresholds for each category by 30 percent.
10The bill similarly increases a threshold relating to when a
11lease or lease-purchase contract is not subject to approval
12procedures similar to essential county purposes bonds.
13Code section 331.402(3) governs a county’s authority
14to enter into loan agreements and, in part, subjects loan
15agreements for real property to procedures for approval at
16an election following a petition if the principal amount of
17the contract exceeds specified thresholds categorized by
18county population. The bill increases the thresholds for each
19category by 30 percent.
20Code section 331.403 requires each county to prepare and
21file an annual financial report. The bill requires that
22beginning with the annual financial report filed by December
231, 2024, each such report shall include a list of bonds,
24notes, or other obligations issued by the county during the
25preceding fiscal year payable from any source, including the
26amount of the issuance, the project or purpose of the issuance,
27whether the issuance was approved at election, eligible to
28be subject to a petition for an election, or was exempt from
29approval at election as the result of statutory exclusions
30based on population of the county or amount of the issuance,
31and identification of issuances from the fiscal year or prior
32fiscal years related to the same project or purpose.
33Code section 331.423 establishes a levy rate limitation
34for the general county services levy of $3.50 per $1,000
35of assessed value of taxable property in the county and a
-57-1limitation for the rural county services levy of $3.95 per
2$1,000 of assessed value of taxable property in the county.
3The bill modifies the general county services levy rate
4limitation for the fiscal year beginning July 1, 2024, to
5be a levy rate not to exceed the sum of $3.50 plus the levy
6rate for general county services under Code section 331.426,
7Code 2023, for the fiscal year beginning July 1, 2023. The
8bill then provides that for each fiscal year beginning on or
9after July 1, 2025, the general county services levy rate
10limitation is the greater of $3.50 per $1,000 of taxable value
11and the limitation determined for the preceding fiscal year,
12as adjusted under the bill. If the total assessed value used
13to calculate taxes for general county services for the budget
14year exceeds 103.25 percent of the total assessed value used
15to calculate taxes for the current fiscal year, the levy rate
16amount per $1,000 for the preceding fiscal year, if applicable,
17shall be reduced to a rate that is equal to 1,000 multiplied
18by the quotient of the current fiscal year’s actual property
19tax dollars certified for levy divided by 103.25 percent of the
20total assessed value used to calculate taxes for the current
21fiscal year.
22In addition to that levy limitation, for fiscal years
23beginning on or after July 1, 2025, if the county’s actual
24levy rate for general county services for the current fiscal
25year is $3.50 or less per $1,000 of assessed value and the
26total assessed value used to calculate taxes for the budget
27year exceeds 102.5 percent of the total assessed value used to
28calculate taxes for the current fiscal year, the levy rate for
29general county services for the budget year shall not exceed
30the rate per $1,000 of assessed value that is equal to 1,000
31multiplied by the quotient of the current fiscal year’s actual
32property tax dollars certified for levy for general county
33services divided by 102.5 percent of the total assessed value
34used to calculate taxes for the current fiscal year.
35The bill similarly modifies the maximum levy rate for rural
-58-1county services for the fiscal year beginning July 1, 2024, to
2be a levy rate equal to the sum of $3.95 plus the rate levied
3for rural county services under section 331.426, Code 2023, for
4the fiscal year beginning July 1, 2023. For each fiscal year
5beginning on or after July 1, 2025, the maximum levy rate is
6the greater of $3.95 and the levy rate for the preceding fiscal
7year as adjusted under the bill. The bill provides that if the
8total assessed value used to calculate taxes for rural county
9services for the budget year exceeds 103.25 percent of the
10total assessed value used to calculate taxes for the current
11fiscal year, the levy rate, as previously adjusted under the
12bill, if applicable, shall be reduced to a rate that is equal
13to 1,000 multiplied by the quotient of the current fiscal
14year’s actual property tax dollars certified for levy for rural
15county services divided by 103.25 percent of the total assessed
16value used to calculate taxes for the current fiscal year.
17In addition to that levy limitation, for fiscal years
18beginning on or after July 1, 2025, if the county’s actual
19levy rate for rural county services for the current fiscal
20year is $3.95 or less per $1,000 of assessed value and the
21total assessed value used to calculate taxes for the budget
22year exceeds 102.5 percent of the total assessed value used
23to calculate taxes for the current fiscal year, the levy
24rate for rural county services for the budget year shall not
25exceed the rate per $1,000 of assessed value that is equal to
261,000 multiplied by the quotient of the current fiscal year’s
27actual property tax dollars certified for levy for rural county
28services divided by 102.5 percent of the total assessed value
29used to calculate taxes for the current fiscal year.
30Code section 331.426 authorizes a county experiencing
31unusual circumstances, including increases in population,
32natural disaster or emergency, problems relating to major
33new functions required by state law, staffing problems, need
34for additional moneys to continue certain programs, need for
35new county programs that provide a substantial benefit to
-59-1residents, and reduced or unusually low growth rate in the
2county, to levy additional property taxes for general county
3services or rural county services. If the county imposed such
4levies in the fiscal year beginning July 1, 2023, the bill
5increases the county’s applicable general services levy rate
6authority by such levy rate amounts as previously described.
7The bill repeals Code section 331.426.
8Code section 331.425 provides that a board of supervisors
9may certify an addition to a levy in excess of the amounts
10otherwise permitted under Code sections 331.423, 331.424, and
11331.426 if the proposition to certify an addition to a levy
12has been submitted at a special levy election and received
13a favorable majority of the votes cast on the proposition.
14The bill removes reference to Code section 331.426, which is
15repealed in the bill, and provides that if the addition to
16a levy approved under Code section 331.425 is due to unusual
17circumstances resulting from the following, the duration of
18such approval at election shall not exceed the following period
19of years: (1) unusual problems relating to major new functions
20required by state law, three years; and (2) unusual need for a
21new program which will provide substantial benefit to county
22residents, if the county establishes the need and the amount
23of necessary increased cost, one year. In addition, for
24elections to approve additions to a levy for such reasons or
25as the result of a natural disaster, the ballot shall include
26additional information relating to the major reasons for the
27addition.
28Code section 331.441(2)(b) defines “essential county
29purpose” to include public buildings, including the site
30or grounds of, and the erection, equipment, remodeling,
31or reconstruction of, and additions or extensions to the
32buildings, and including the provision and maintenance of
33juvenile detention or shelter care facilities, when the
34cost does not exceed specified thresholds based on county
35population. The bill increases each of the threshold amounts
-60-1by 30 percent.
2The bill strikes “[a]ny other purpose which is necessary for
3the operation of the county or the health and welfare of its
4citizens” from the definition of “general county purpose” under
5Code section 331.441(2)(c).
6Code section 331.442 governs county procedures for the
7issuance of general county purpose bonds. In lieu of calling
8an election, the board of supervisors may institute proceedings
9for the issuance of bonds for a general county purpose by
10publishing a notice of the proposal to issue the bonds,
11including a statement of the amount and purpose of the bonds,
12and the right to petition for an election if the amount of the
13bonds is less than specified threshold amounts based on county
14population. The bill increases each of the threshold amounts
15by 30 percent.
16The bill also requires a notice of proposal to issue general
17obligation bonds by a county to include an estimate of the
18annual increase in property taxes as the result of the bond
19issuance on a residential property with an actual value of
20$100,000.
21Division I of the bill takes effect July 1, 2024, and applies
22to county taxes and budgets for fiscal years beginning on or
23after July 1, 2024.
24DIVISION II — CITY PROPERTY TAXES. Code section 384.1
25establishes the city general fund levy and limits the levy rate
26on property that is not used and assessed for agricultural or
27horticultural purposes at $8.10 per $1,000 of taxable value.
28This bill modifies the levy rate limit for the fiscal year
29beginning July 1, 2024, to not exceed the sum of $8.10 plus the
30following for the applicable city: (1) the levy rate under
31Code section 384.8, Code 2023, for the fiscal year beginning
32July 1, 2023; (2) the total levy rate levied by or on behalf
33of the city under Code section 384.12, subsections 1, 2, 3, 4,
345, 6, 7, 8, 9, 11, 12, 13, 15, 16, and 20, Code 2023, for the
35fiscal year beginning July 1, 2023; and (3) the levy rate of
-61-1the city under Code section 24.48, Code 2023, for the fiscal
2year beginning July 1, 2023.
3For each fiscal year beginning on or after July 1, 2025, a
4city’s tax levy rate for the general fund, except for levies
5authorized in Code section 384.12, shall not exceed in any tax
6year the greater of $8.10 per $1,000 and the amount determined
7under the bill for the prior year, as adjusted under the bill.
8The bill provides that if the total assessed value used to
9calculate taxes for the budget year exceeds 103.25 percent
10of the total assessed value used to calculate taxes for the
11current fiscal year, the levy rate, as previously adjusted
12under the bill, if applicable, shall be reduced to a rate that
13is equal to 1,000 multiplied by the quotient of the current
14fiscal year’s actual property tax dollars certified for levy
15under Code section 384.1 divided by 103.25 percent of the total
16assessed value used to calculate taxes for the current fiscal
17year.
18In addition to that levy limitation, for fiscal years
19beginning on or after July 1, 2025, if the city’s actual levy
20rate for the general fund for the current fiscal year is $8.10
21or less per $1,000 of assessed value and the total assessed
22value used to calculate taxes for the budget year exceeds 102.5
23percent of the total assessed value used to calculate taxes
24for the current fiscal year, the levy rate for the general
25fund for the budget year shall not exceed the rate per $1,000
26of assessed value that is equal to 1,000 multiplied by the
27quotient of the current fiscal year’s actual property tax
28dollars certified for levy under Code section 384.1 divided by
29102.5 percent of the total assessed value used to calculate
30taxes for the current fiscal year.
31Code section 384.12 authorizes a city to levy various
32other additional taxes that under current law are not subject
33to the $8.10 levy limit. The bill strikes several of the
34purposes for which a city may levy an additional tax and if
35the county imposed such levies in the fiscal year beginning
-62-1July 1, 2023, increases the county’s general services levy rate
2authority under Code section 384.1 by such levy rate amounts
3as previously described.
4Code section 24.48, in part, authorizes a city with a reduced
5property tax base or unusually low growth rate or experiencing
6unusual circumstances, including increases in population,
7natural disaster or emergency, problems relating to major new
8functions required by state law, staffing problems, need for
9additional moneys to continue certain programs, and need for
10new programs that provide a substantial benefit to residents,
11to appeal to the state appeal board to suspend levy limitations
12and levy additional property taxes. The bill provides that for
13budgets for fiscal years beginning on or after July 1, 2024,
14suspension of the statutory property tax levy limitations for a
15city shall only be approved for a natural disaster, problems
16relating to major new functions required by state law, or a
17need for new programs that provide a substantial benefit to
18residents.
19The bill repeals Code section 384.8, which authorizes a
20$0.27 city emergency fund levy and makes corresponding changes
21to other provisions of law relating to the modification of city
22supplemental property tax levies and the city’s general fund
23levy under Code section 384.1.
24Code section 384.22 requires each city to prepare and
25publish an annual financial report. The bill requires that
26beginning with the annual financial report published by
27December 1, 2024, each such report shall include a list of
28bonds, notes, or other obligations issued by the city during
29the preceding fiscal year payable from any source, including
30the amount of the issuance, the project or purpose of the
31issuance, whether the issuance was approved at election,
32eligible to be subject to a petition for an election, or was
33exempt from approval at election as the result of statutory
34exclusions based on population of the city or amount of the
35issuance, and identification of issuances from the fiscal year
-63-1or prior fiscal years related to the same project or purpose.
2The bill strikes “[a]ny other purpose which is necessary
3for the operation of the city or the health and welfare of its
4citizens” from the definition of “general corporate purpose”
5under Code section 384.24(4).
6Code section 384.24A(4) governs a city’s authority to enter
7into loan agreements and, in part, subjects loan agreements
8for real property to procedures for approval at an election
9following a petition if the principal amount of the contract
10exceeds specified thresholds categorized by city population.
11The bill increases the contract amount thresholds for each
12category by 30 percent.
13Code section 384.26 governs city procedures for the issuance
14of city general corporate purpose bonds. In lieu of calling an
15election, the city council may institute proceedings for the
16issuance of bonds for a general corporate purpose by publishing
17a notice of the proposal to issue the bonds, including a
18statement of the amount and purpose of the bonds, and the right
19to petition for an election if the amount of the bonds is less
20than specified threshold amounts based on city population. The
21bill increases each of the threshold amounts by 30 percent.
22The bill also requires a notice of proposal to issue general
23obligation bonds by a city to, among other information related
24to the issuance, include an estimate of the annual increase
25in property taxes as the result of the bond issuance on a
26residential property with an actual value of $100,000.
27Division II takes effect July 1, 2024, and applies to taxes
28and budgets for fiscal years beginning on or after July 1,
292024.
30DIVISION III — PUBLIC EDUCATION AND RECREATIONAL TAX LEVY.
31 Code chapter 300 authorizes the imposition of a voter-approved
32property tax levy for the establishment and maintenance
33of public recreation places and playgrounds, and necessary
34accommodations for the recreation places and playgrounds, in
35the public school buildings and grounds of the district. Code
-64-1chapter 300 also authorizes each school board to cooperate
2with public or private agencies having custody and management
3of public parks or buildings or grounds open to the public
4for the supervision and instruction necessary to carry on
5public educational and recreational activities in the parks,
6buildings, and grounds located within the district. Such
7activities may be supported by imposition of a voter-approved
8property tax levy not to exceed 13.5 cents per $1,000 of
9assessed value. The property tax levy under Code chapter 300
10also provides financial support to community education programs
11established under Code chapter 276, which provide educational,
12recreational, cultural, and other community services and
13programs.
14The bill repeals Code chapter 300 and makes corresponding
15amendments to other provisions of law effective July 1, 2027,
16and applies to fiscal years beginning on or after July 1,
172027. The bill provides that financial support for a community
18education program under Code chapter 276 may be provided from
19funds received by the school district under Code chapter 423F.
20 By operation of the definition of “school infrastructure” under
21Code section 423F.3(6)(a)(1), moneys received by a school
22district from the secure an advanced vision for education fund
23may continue to be utilized for activities previously provided
24for under Code chapter 300 and Code chapter 276.
25The bill prohibits a levy under Code chapter 300 from being
26approved at election on or after the effective date of the
27provision in the bill, which is effective upon enactment, and
28limits the rate at which previously approved levies can be
29imposed for the fiscal year beginning July 1, 2026.
30The bill also provides that moneys available in the public
31education and recreation levy fund at the conclusion of the
32fiscal year beginning July 1, 2026, and ending June 30, 2026,
33shall be expended by the school corporation for the purposes
34authorized under Code chapter 300, Code 2023.
35DIVISION IV — BRUCELLOSIS AND TUBERCULOSIS ERADICATION
-65-1FUND — LEVY. Code section 165.18 authorizes the secretary of
2agriculture to direct the board of supervisors of each county
3to levy an amount sufficient to pay the expenses estimated to
4be incurred from the brucellosis and tuberculosis eradication
5fund for the following fiscal year, subject to a maximum levy
6of 33.75 cents per $1,000. The bill strikes the authority to
7levy such a tax beginning with property taxes due and payable
8in fiscal years beginning July 1, 2024.
9DIVISION V — COUNTY SEATS. The bill specifies that pursuant
10to the general grant of home rule power conferred by the
11Constitution of the State of Iowa and if not inconsistent with
12the laws of the general assembly, a county that has designated
13more than one city to be a county seat may consolidate or
14reduce the number of county seats by ordinance. The bill also
15repeals 1848 Iowa Acts, First Extraordinary Session, chapter
1652, which in part required Lee County to maintain a district
17court at Fort Madison and the city of Keokuk, required the
18clerk of district court to keep an office at Fort Madison and
19the city of Keokuk, and required the sheriff of Lee County to
20keep an office at Fort Madison and the city of Keokuk.
21Division V of the bill takes effect upon enactment.
22DIVISION VI — COUNTY SHERIFF FEE REPORT. The bill strikes
23the provision of Code section 331.655 that requires an annual
24report from the Iowa state sheriffs’ and deputies’ association
25that details, based on a sampling of specified county data, the
26total annual county budget allocation to the sheriff to fulfill
27those duties for which the sheriff is required to collect
28certain fees, the average cost per service, summons, execution,
29or other activity by activity category, the revenue generated
30by collection of those fees by category, and the associated
31impact on property taxes for each county to fulfill those
32duties for which the sheriff is required to collect such fees.
33DIVISION VII — HOMESTEAD PROPERTY TAX CREDIT. Code chapter
34425 establishes a homestead property tax credit in an amount
35equal to the property tax levy on the first $4,850 of actual
-66-1value. The homestead credit is paid for from the homestead
2credit fund under Code section 425.1 for which there is an
3annual appropriation for an amount sufficient to implement the
4credit.
5The bill establishes a homestead property tax exemption
6for owners 65 or older that is in addition to the homestead
7credit. For the assessment year beginning January 1, 2024, the
8exemption amount is $3,250. For the assessment year beginning
9January 1, 2025, and each succeeding assessment year, the
10exemption amount is $6,500.
11Code section 25B.7 provides that if a state appropriation
12made to fund a credit or exemption is not sufficient to fully
13fund the credit or exemption, the political subdivision shall
14be required to extend to the taxpayer only that portion of the
15credit or exemption estimated by the department of revenue to
16be funded by the state appropriation. The bill provides that
17the general requirement of Code section 25B.7 for property tax
18credits and exemptions does not apply to the homestead property
19tax exemption established in the bill.
20The bill makes corresponding changes to various other
21provisions of the Code relating to and referencing the
22homestead property tax credit.
23The bill provides that homestead credit claims approved
24prior to and valid on the effective date of the division shall
25result in a homestead tax exemption under Code chapter 425,
26subchapter I, as enacted in the division, without further
27filing by the claimant if the assessor has the information to
28verify eligibility for the exemption.
29Division VII applies to assessment years beginning on or
30after January 1, 2024.
31DIVISION VIII — ELDERLY PROPERTY TAX CREDIT. The
32bill amends Code section 423.23 to modify part of the
33calculation for the elderly property tax credit to account
34for the homestead credit for the property under Code section
35425.1. The division takes effect upon enactment and applies
-67-1retroactively to claims for the credit filed on or after
2January 1, 2022.
3DIVISION IX — MILITARY SERVICE PROPERTY TAX EXEMPTION AND
4CREDIT. Division VII relates to the military service property
5tax exemption and credit. Under current law, veterans of World
6War I are entitled to a property tax exemption of $2,778 in
7taxable value and honorably discharged veterans who served
8during other specific time periods are entitled to a property
9tax exemption of $1,852 in taxable value. The bill increases
10the exemption amount for all eligible veterans to $4,000 for
11assessment years beginning on or after January 1, 2024.
12Under current law, the state provides funding to local
13governments for the military service property tax exemption and
14credit up to $6.92 per $1,000 of assessed value of the exempt
15property. The bill eliminates funding for the credit starting
16with the fiscal year beginning July 1, 2025.
17Code section 25B.7 provides that if a state appropriation
18made to fund a credit or exemption is not sufficient to fully
19fund the credit or exemption, the political subdivision shall
20be required to extend to the taxpayer only that portion of the
21credit or exemption estimated by the department of revenue to
22be funded by the state appropriation. The requirement for
23fully funding and the consequences of not fully funding under
24Code section 25B.7 applies to the military service property
25tax credit and exemption to the extent of $6.92 per $1,000
26of assessed value of the exempt property. The bill strikes
27the portion of Code section 25B.7 that makes the requirement
28for fully funding and the consequences of not fully funding
29applicable to the military service property tax credit and
30exemption and provides that the general requirement of Code
31section 25B.7 for property tax credits and exemptions does not
32apply to the military property tax exemption established in the
33bill.
34The division applies to assessment years beginning on or
35after January 1, 2024.
-68- 1DIVISION X — PROPERTY TAX BENEFITS AND INCENTIVES. The bill
2amends Code chapter 404 (urban revitalization areas) to provide
3that for revitalization areas established on or after the
4effective date of the division and for first-year property tax
5exemption applications for property located in a revitalization
6area in existence on the effective date of the division filed
7on or after the effective date of the division, commercial
8property shall not receive a tax exemption under Code chapter
9404 unless the city or county, as applicable, and the owner
10of the qualified real estate enter into a written assessment
11agreement specifying a minimum actual value until a specified
12termination date for the duration of the exemption period.
13The bill also establishes limitations on exemptions for
14residential property within revitalization areas. For
15revitalization areas established on or after the effective date
16of the division and for first-year exemption applications for
17property located in a revitalization area in existence on the
18effective date of the division filed on or after the effective
19date of the division, an exemption under Code chapter 404
20for property that is residential property shall not apply to
21property tax levies imposed by a school district.
22Division X of the bill takes effect July 1, 2024.
23DIVISION XI — TRANSIT FUNDING. Cities may grant various
24types of franchises for specified services under Code section
25362.4 and may generally impose a franchise fee based upon
26a percentage of gross revenues generated from sales of the
27franchisee within the city not to exceed 5 percent. An
28exception allowing for a franchise fee up to 7.5 percent exists
29in specified circumstances for a period of fiscal years ending
30July 1, 2030, if approved at election. The bill strikes
31the provisions providing for that exception and establishes
32conditions under which a city with a population that exceeds
33200,000 may impose a franchise fee of up to 7.5 percent for
34fiscal years beginning on or after July 1, 2024. The bill
35requires that franchise fee amounts collected during such
-69-1fiscal years in excess of 5 percent of gross revenues generated
2from sales shall be used solely for the reduction of property
3tax levies used to support the operation and maintenance of a
4municipal transit system or a regional transit district or to
5maintain transportation service levels of a municipal transit
6system or a regional transit district.
7The division of the bill takes effect July 1, 2024.
8DIVISION XII — COUNTY AUDITOR VALUATION REPORTS. Code
9section 331.510, in part, requires the county auditor to
10make an annual report to the department of management of the
11valuation by class of property for each taxing district in the
12county, which shall be used for determining the levy rates
13necessary to fund the budgets of the taxing districts for the
14following fiscal year. In addition, the county auditor is
15required to make an annual report to the governing body of
16each taxing district in the county of the assessed valuations
17of taxable property in the taxing district as reported to the
18department of management.
19The bill requires both such annual reports for assessment
20years beginning on or after January 1, 2024, to distinguish
21such values as revaluation or other type of addition to value,
22as defined and submitted in the assessor’s abstract transmitted
23to the department of revenue under Code section 441.45.
24DIVISION XIII — LOCAL GOVERNMENT BUDGETS AND TAXPAYER
25STATEMENTS. The division relates to the approval of city,
26county, and school district budgets.
27Current law establishes budget certification deadlines
28for various political subdivisions, including March 31 for
29counties and cities, April 15 for school districts, and March
3015 for townships and other political subdivisions subject to
31the budget approval procedures of Code chapter 24. The bill
32modifies the budget certification deadline for counties and
33cities to be April 15.
34The bill enacts a requirement for certain political
35subdivisions (school districts, cities, and counties) to take
-70-1additional steps in preparing their annual budgets. Under
2the bill, on or before February 27 of each year, each such
3political subdivision is required to file with the county
4auditor a report containing all necessary information for the
5county auditor to calculate certain amounts required to be
6included in individual statements mailed by the county auditor
7to each property owner or taxpayer within the county not later
8than March 1. Each individual statement must contain all of
9the following for each of the political subdivisions comprising
10the owner’s or taxpayer’s taxing district: (1) the sum of
11the current fiscal year’s actual property taxes certified
12for levy for all of the political subdivision’s levies and
13the combined property tax rate for such tax amount for the
14current fiscal year; (2) the combined effective property tax
15rate for the political subdivision for all of the political
16subdivision’s levies; (3) the combined amount of the proposed
17property tax dollars to be certified for all of the political
18subdivision’s levies and the proposed combined property tax
19rate for such levies; (4) if the proposed combined property
20tax dollars exceeds the current fiscal year’s actual combined
21property tax dollars certified for levy, a detailed statement
22of the major reasons for the increase, including the specific
23purposes or programs for which the political subdivision is
24proposing an increase; (5) an example comparing the amount of
25property taxes on a residential property with an actual value
26of $100,000 in the current fiscal year and such amount on the
27residential property using the proposed property tax dollars
28for the budget year; (6) an example comparing the amount of
29property taxes on a commercial property with an actual value
30of $100,000 in the current fiscal year and such amount on the
31commercial property using the proposed property tax dollars for
32the budget year; (7) the political subdivision’s percentage
33of total property taxes certified for levy in the owner’s or
34taxpayer’s taxing district in the current fiscal year among all
35taxing authorities; (8) the date, time, and location of the
-71-1public hearing required under the bill; and (9) information on
2how to access on the political subdivision’s internet site the
3political subdivision’s statements under the new Code section
4and other budget documents for prior fiscal years.
5Each political subdivision is also required to conduct
6a public hearing on its proposed property tax amount for
7the budget year and the political subdivision’s information
8included in the individual statements. The date of the
9political subdivision’s public hearing shall not be on the
10same date of the public hearing under the bill of another
11political subdivision with which the political subdivision
12shares territory. At the hearing, the governing body of
13the political subdivision is required to receive oral or
14written testimony from any resident or property owner of the
15political subdivision. This public hearing must be separate
16from any other meeting of the governing body of the political
17subdivision, including any other meeting or public hearing
18relating to the political subdivision’s budget, and other
19business of the political subdivision that is not related to
20the proposed property tax amounts and the information in the
21statements shall not be conducted at the public hearing. After
22all testimony has been received and considered, the governing
23body may decrease, but not increase, the proposed property tax
24amount to be included in the political subdivision’s budget.
25Notice of the public hearing must also be published in a
26newspaper, posted on the political subdivision’s internet site,
27and, if the political subdivision maintains a social media
28account, post the public hearing notice or an electronic link
29to the public hearing notice on each such account.
30The bill repeals Code sections 331.433A and 384.15A,
31applicable to the approval of county and city budgets.
32The bill makes corresponding changes to other Code chapters
33relating to county and city budgets.
34The bill makes penalties applicable by operation of Code
35section 24.24, which provides, in part, that failure on
-72-1the part of a public official to perform any of the duties
2prescribed in Code chapter 24 constitutes a simple misdemeanor,
3and is sufficient ground for removal from office. A simple
4misdemeanor is punishable by confinement for no more than 30
5days and a fine of at least $105 but not more than $855.
6The division may include a state mandate as defined in
7Code section 25B.3. The division makes inapplicable Code
8section 25B.2, subsection 3, which would relieve a political
9subdivision from complying with a state mandate if funding for
10the cost of the state mandate is not provided or specified.
11Therefore, political subdivisions are required to comply with
12any state mandate included in the division.
13The division applies to city, county, and school district
14budgets for fiscal years beginning on or after July 1, 2024.
15DIVISION XIV — DRIVER’S LICENSES AND NONOPERATOR’S
16IDENTIFICATION CARDS. Current law authorizes certain counties
17to issue driver’s licenses and nonoperator’s identification
18cards if the county meets standards set by the department
19of transportation. A county retains for deposit in the
20county general fund $7 of fees received for each issuance or
21renewal of driver’s licenses and nonoperator’s identification
22cards. The division allows a county authorized to issue
23driver’s licenses to charge a $10 convenience fee for the
24issuance or renewal of a driver’s license or nonoperator’s
25identification card to a person who is not a resident of the
26county. However, the county cannot charge the convenience fee
27to a nonresident person who pays property tax to the county if
28the person provides proof that they paid property tax, such as
29a receipt from the county treasurer or another form of proof
30as determined by the county. The county treasurer retains the
31entire convenience fee collected for deposit in the county
32general fund.
33DIVISION XV — WRITING FEES. The division relates to writing
34fees required for certain all-terrain vehicle, snowmobile, and
35water vessel transactions completed by a county recorder.
-73- 1WATER VESSELS. Under current law, a county recorder
2collects a writing fee of $1.25 for “each privilege” under
3Code chapter 462A (water navigation regulations). A writing
4fee is paid by the boat owner to the county recorder for
5handling the transaction. The writing fee is specifically
6required with applications for registration, including new
7or duplicate certificates of registration (Code section
8462A.5). The writing fee is also specifically required for
9transfers of ownership of vessels with an expired registration,
10due when the transferee pays all applicable fees for the
11current registration period (Code section 462A.43), and with
12applications for transfer (Code section 462A.44). The writing
13fee is not specifically mentioned for applications for issuance
14of a certificate of title (Code section 462A.77), which
15requires the application to be accompanied by the required
16fee. The required fee for issuance of a certificate of title,
17a transfer of title, a duplicate, or a corrected certificate
18of title is $5 plus a surcharge of $5 (Code section 462A.78).
19Likewise, the writing fee is not specifically mentioned for
20perfection of a security interest, for which the application
21fee is $5 (Code section 462A.84). The bill specifies that
22applications for a certificate of title or perfection of a
23security interest are subject to the writing fee. The bill
24increases the writing fee from $1.25 to $2.
25SNOWMOBILES AND ALL-TERRAIN VEHICLES. In contrast to
26water vessels, the writing fee provisions for snowmobiles and
27all-terrain vehicles explicitly impose the $1.25 writing fee
28only for registration or renewal, user permits, and duplicate
29special registration certificates (Code sections 321G.27 and
30321I.29). The bill alters these provisions to instead apply
31to “each privilege” under the respective Code chapter, and
32specifies that applications for a certificate of title or
33perfection of a security interest are subject to the writing
34fee. The bill increases the writing fee from $1.25 to $2.
35Current law provides that a license agent shall collect a
-74-1writing fee of $1 for each snowmobile or all-terrain vehicle
2registration or renewal and for the sale of each user permit.
3The bill does not amend these provisions.
-75-md/jh
2authority, operations, and budgets, modifying certain
3transit funding, property tax credits and exemptions, and
4appropriations, requiring certain information related
5to property taxation to be provided to property owners
6and taxpayers, modifying provisions relating to fees for
7driver’s licenses and nonoperator’s identification cards,
8modifying provisions relating to certain writing fees,
9making penalties applicable, and including effective date,
10retroactive applicability, and applicability provisions.
11BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2COUNTY PROPERTY TAXES AND BUDGETS
3 Section 1. Section 331.301, subsection 10, paragraph e,
4subparagraph (1), Code 2023, is amended to read as follows:
5(1) (a) The board must follow substantially the
6authorization procedures of section 331.443 to authorize
7a lease or lease-purchase contract for personal property
8which is payable from the general fund. The board must
9follow substantially the authorization procedures of section
10331.443 to authorize a lease or lease-purchase contract for
11real property which is payable from the general fund if the
12principal amount of the lease-purchase contract does not exceed
13the following limits:
14(i) Four Five hundred twenty thousand dollars in a county
15having a population of twenty-five thousand or less.
16(ii) Five Six hundred fifty thousand dollars in a county
17having a population of more than twenty-five thousand but not
18more than fifty thousand.
19(iii) Six Seven hundred eighty thousand dollars in a county
20having a population of more than fifty thousand but not more
21than one hundred thousand.
22(iv) Eight hundred One million forty thousand dollars in a
23county having a population of more than one hundred thousand
24but not more than two hundred thousand.
25(v) One million three hundred thousand dollars in a county
26having a population of more than two hundred thousand.
27(b) However, if the principal amount of a lease or
28lease-purchase contract pursuant to this subparagraph (1) is
29less than twenty-five thirty-two thousand five hundred dollars,
30the board may authorize the lease or lease-purchase contract
31without following the authorization procedures of section
32331.443.
33 Sec. 2. Section 331.402, subsection 3, paragraph d,
34subparagraph (1), subparagraph divisions (a), (b), (c), (d),
35and (e), Code 2023, are amended to read as follows:
-1- 1(a) Four Five hundred twenty thousand dollars in a county
2having a population of twenty-five thousand or less.
3(b) Five Six hundred fifty thousand dollars in a county
4having a population of more than twenty-five thousand but not
5more than fifty thousand.
6(c) Six Seven hundred eighty thousand dollars in a county
7having a population of more than fifty thousand but not more
8than one hundred thousand.
9(d) Eight hundred One million forty thousand dollars in a
10county having a population of more than one hundred thousand
11but not more than two hundred thousand.
12(e) One million three hundred thousand dollars in a county
13having a population of more than two hundred thousand.
14 Sec. 3. Section 331.403, subsection 1, Code 2023, is amended
15to read as follows:
161. Not later than December 1 of each year on forms and
17pursuant to instructions prescribed by the department of
18management, a county shall prepare an annual financial report
19showing for each county fund the financial condition as of
20June 30 and the results of operations for the year then ended.
21Copies of the report shall be maintained as a public record at
22the auditor’s office and shall be filed with the director of
23the department of management and with the auditor of state by
24December 1. A summary of the report, in a form prescribed by
25the director, shall be published by each county not later than
26December 1 of each year in one or more newspapers which meet
27the requirements of section 618.14. Beginning with the annual
28financial report filed by December 1, 2024, each report shall
29include a list of bonds, notes, or other obligations issued by
30the county during the preceding fiscal year payable from any
31source, including the amount of the issuance, the project or
32purpose of the issuance, whether the issuance was approved
33at election, eligible to be subject to a petition for an
34election, or was exempt from approval at election as the result
35of statutory exclusions based on population of the county or
-2-1amount of the issuance, and identification of issuances from
2the fiscal year or prior fiscal years related to the same
3project or purpose.
4 Sec. 4. Section 331.422, unnumbered paragraph 1, Code 2023,
5is amended to read as follows:
6Subject to this section and sections 331.423 through 331.426
7 331.425 or as otherwise provided by state law, the board of
8each county shall certify property taxes annually at its March
9session to be levied for county purposes as follows:
10 Sec. 5. Section 331.423, Code 2023, is amended to read as
11follows:
12331.423 Basic levies — maximums — adjustments.
13Annually, the board may certify basic levies, subject to the
14following limits:
151. For general county services,:
16a. For fiscal years beginning before July 1, 2024,three
17dollars and fifty cents per thousand dollars of the assessed
18value of all taxable property in the county.
19b. For the fiscal year beginning July 1, 2024, a levy rate
20per thousand dollars of taxable value equal to the sum of three
21dollars and fifty cents plus the sum of the amount per thousand
22dollars of taxable value levied for general county services
23under section 331.426, Code 2023, for the fiscal year beginning
24July 1, 2023.
25c. (1) For each fiscal year beginning on or after July 1,
262025, subject to paragraph “d”, the greater of three dollars
27and fifty cents per thousand dollars of assessed value used to
28calculate taxes for the budget year and the amount determined
29under paragraph “b”, as adjusted under subparagraph (2), if
30applicable.
31(2) If the total assessed value used to calculate taxes
32for general county services for the budget year exceeds one
33hundred three and one-fourth percent of the total assessed
34value used to calculate taxes for the current fiscal year, the
35levy rate per thousand dollars determined under paragraph “b”,
-3-1as previously adjusted under this subparagraph, if applicable,
2shall be reduced to a rate per one thousand dollars of assessed
3value that is equal to one thousand multiplied by the quotient
4of the current fiscal year’s actual property tax dollars
5certified for levy under this subsection 1 divided by one
6hundred three and one-fourth percent of the total assessed
7value used to calculate taxes for the current fiscal year.
8d. In addition to the limitation under paragraph “c”,
9for fiscal years beginning on or after July 1, 2025, if the
10county’s actual levy rate imposed under this subsection for the
11current fiscal year is three dollars and fifty cents or less
12per thousand dollars of assessed value and the total assessed
13value used to calculate taxes for the budget year exceeds one
14hundred two and one-half percent of the total assessed value
15used to calculate taxes for the current fiscal year, the levy
16rate imposed under this subsection for the budget year shall
17not exceed a rate per one thousand dollars of assessed value
18that is equal to one thousand multiplied by the quotient of the
19current fiscal year’s actual property tax dollars certified for
20levy under this subsection 1 divided by one hundred two and
21one-half percent of the total assessed value used to calculate
22taxes for the current fiscal year.
232. For rural county services,:
24a. For fiscal years beginning before July 1, 2024,three
25dollars and ninety-five cents per thousand dollars of the
26assessed value of taxable property in the county outside of
27incorporated city areas.
28b. For the fiscal year beginning July 1, 2024, a levy rate
29per thousand dollars of taxable value equal to the sum of three
30dollars and ninety-five cents plus the sum of the amount per
31thousand dollars of taxable value levied for rural county
32services under section 331.426, Code 2023, for the fiscal year
33beginning July 1, 2023.
34c. (1) For each fiscal year beginning on or after July 1,
352025, subject to paragraph “d”, the greater of three dollars
-4-1and ninety-five cents per thousand dollars of assessed value
2used to calculate taxes for the budget year and the amount
3determined under paragraph “b”, as adjusted under subparagraph
4(2), if applicable.
5(2) If the total assessed value used to calculate taxes for
6rural county services under this subsection for the budget year
7exceeds one hundred three and one-fourth percent of the total
8assessed value used to calculate taxes for the current fiscal
9year, the levy rate per thousand dollars determined under
10paragraph “b”, as previously adjusted under this subparagraph,
11if applicable, shall be reduced to a rate per one thousand
12dollars of assessed value that is equal to one thousand
13multiplied by the quotient of the current fiscal year’s actual
14property tax dollars certified for levy under this subsection
152 divided by one hundred three and one-fourth percent of the
16total assessed value used to calculate taxes for the current
17fiscal year.
18d. In addition to the limitation under paragraph “c”,
19for fiscal years beginning on or after July 1, 2025, if the
20county’s actual levy rate imposed under this subsection for
21the current fiscal year is three dollars and ninety-five cents
22or less per thousand dollars of assessed value and the total
23assessed value used to calculate taxes for the budget year
24exceeds one hundred two and one-half percent of the total
25assessed value used to calculate taxes for the current fiscal
26year, the levy rate imposed under this subsection for the
27budget year shall not exceed a rate per one thousand dollars
28of assessed value that is equal to one thousand multiplied
29by the quotient of the current fiscal year’s actual property
30tax dollars certified for levy under this subsection 2 divided
31by one hundred two and one-half percent of the total assessed
32value used to calculate taxes for the current fiscal year.
333. For purposes of this section:
34a. “Budget year” is the fiscal year beginning during the
35calendar year in which a budget is certified.
-5- 1b. “Current fiscal year” is the fiscal year ending during
2the calendar year in which a budget for the budget year is
3certified.
4 Sec. 6. Section 331.425, unnumbered paragraph 1, Code 2023,
5is amended to read as follows:
6The board may certify an addition to a levy in excess
7of the amounts otherwise permitted under sections 331.423,
8 and 331.424, and 331.426 if the proposition to certify an
9addition to a levy has been submitted at a special levy
10election and received a favorable majority of the votes cast
11on the proposition. A special levy election is subject to the
12following:
13 Sec. 7. Section 331.425, Code 2023, is amended by adding the
14following new subsection:
15 NEW SUBSECTION. 6. a. If the addition to a levy approved
16under this section is due to unusual circumstances resulting
17from the following, the duration of such approval at election
18shall not exceed the following period of years:
19(1) Unusual problems relating to major new functions
20required by state law, three years.
21(2) Unusual need for a new program which will provide
22substantial benefit to county residents, if the county
23establishes the need and the amount of necessary increased
24cost, one year.
25b. For an election to approve an addition to a levy for a
26reason specified in paragraph “a” or as the result of a natural
27disaster, the ballot shall include a statement of the major
28reasons for the difference between the proposed basic tax rate
29and the maximum basic tax rate, including a description of the
30major new functions required by state law and the specific
31new costs to the county to implement the new functions, a
32description of the new program that will provide substantial
33benefits to county residents and specific new costs to the
34county for the program, or the conditions and damage resulting
35from the natural disaster that the county must remedy.
-6-1 Sec. 8. Section 331.434, unnumbered paragraph 1, Code 2023,
2is amended to read as follows:
3Annually, the board of each county, subject to section
4331.403, subsection 4, sections 331.423 through 331.426
5 331.425, section 331.433A, and other applicable state law,
6shall prepare and adopt a budget, certify taxes, and provide
7appropriations as follows:
8 Sec. 9. Section 331.435, subsection 1, Code 2023, is amended
9to read as follows:
101. The board may amend the adopted county budget, subject to
11sections 331.423 through 331.426 331.425 and other applicable
12state law, to permit increases in any class of proposed
13expenditures contained in the budget summary published under
14section 331.434, subsection 3.
15 Sec. 10. Section 331.441, subsection 2, paragraph b,
16subparagraph (5), subparagraph divisions (a), (b), (c), (d),
17and (e), Code 2023, are amended to read as follows:
18(a) Six Seven hundred eighty thousand dollars in a county
19having a population of twenty-five thousand or less.
20(b) Seven Nine hundred fifty ten thousand dollars in a
21county having a population of more than twenty-five thousand
22but not more than fifty thousand.
23(c) Nine One million one hundred seventy thousand dollars in
24a county having a population of more than fifty thousand but
25not more than one hundred thousand.
26(d) One million two five hundred sixty thousand dollars in
27a county having a population of more than one hundred thousand
28but not more than two hundred thousand.
29(e) One million five nine hundred fifty thousand dollars in
30a county having a population of more than two hundred thousand.
31 Sec. 11. Section 331.441, subsection 2, paragraph c,
32subparagraph (11), Code 2023, is amended by striking the
33subparagraph.
34 Sec. 12. Section 331.442, subsection 2, paragraph a, Code
352023, is amended to read as follows:
-7- 1a. The board shall publish notice of the proposal to issue
2the bonds, including a statement of the amount and purpose
3of the bonds, and a statement of the estimated cost of the
4project for which the bonds are to be issued, and an estimate
5of the annual increase in property taxes as the result of
6the bond issuance on a residential property with an actual
7value of one hundred thousand dollars. The notice shall be
8published as provided in section 331.305 with the minutes of
9the meeting at which the board adopts a resolution to call a
10county special election to vote upon the question of issuing
11the bonds. The cost of the project, as published in the notice
12pursuant to this paragraph, is an estimate and is not intended
13to be binding on the board in later proceedings related to the
14project.
15 Sec. 13. Section 331.442, subsection 5, paragraph a,
16subparagraphs (1), (2), and (3), Code 2023, are amended to read
17as follows:
18(1) In counties having a population of twenty thousand or
19less, in an amount of not more than one hundred thirty thousand
20dollars.
21(2) In counties having a population of over twenty thousand
22and not over fifty thousand, in an amount of not more than two
23hundred sixty thousand dollars.
24(3) In counties having a population of over fifty thousand,
25in an amount of not more than three hundred ninety thousand
26dollars.
27 Sec. 14. Section 331.443, subsection 2, Code 2023, is
28amended to read as follows:
292. Before the board may institute proceedings for the
30issuance of bonds for an essential county purpose, a notice
31of the proposed action, including a statement of the amount
32and purposes of the bonds, an estimate of the annual increase
33in property taxes as the result of the bond issuance on a
34residential property with an actual value of one hundred
35thousand dollars, and the time and place of the meeting at
-8-1which the board proposes to take action for the issuance of the
2bonds, shall be published as provided in section 331.305. At
3the meeting, the board shall receive oral or written objections
4from any resident or property owner of the county. After
5all objections have been received and considered, the board,
6at that meeting or a date to which it is adjourned, may take
7additional action for the issuance of the bonds or abandon the
8proposal to issue the bonds. Any resident or property owner
9of the county may appeal the decision of the board to take
10additional action to the district court of the county, within
11fifteen days after the additional action is taken, but the
12additional action of the board is final and conclusive unless
13the court finds that the board exceeded its authority. The
14provisions of this subsection with respect to notice, hearing,
15and appeal, are in lieu of any other law.
16 Sec. 15. REPEAL. Section 331.426, Code 2023, is repealed.
17 Sec. 16. EFFECTIVE DATE. This division of this Act takes
18effect July 1, 2024.
19 Sec. 17. APPLICABILITY. This division of this Act applies
20to taxes and budgets for fiscal years beginning on or after
21July 1, 2024.
22DIVISION II
23CITY PROPERTY TAXES AND BUDGETS
24 Sec. 18. Section 24.48, subsection 5, Code 2023, is amended
25by adding the following new paragraph:
26 NEW PARAGRAPH. c. For budgets for fiscal years beginning on
27or after July 1, 2024, if the political subdivision is a city,
28a suspension of the statutory property tax levy limitations
29under this section shall only be approved by the state appeal
30board in the event of a natural disaster or under the reasons
31specified in subsection 1, paragraph “c” or “f”.
32 Sec. 19. Section 28M.5, subsection 1, Code 2023, is amended
33to read as follows:
341. The commission, with the approval of the board of
35supervisors of participating counties and the city council
-9-1of participating cities in the chapter 28E agreement, may
2levy annually a tax not to exceed ninety-five cents per
3thousand dollars of the assessed value of all taxable property
4in a regional transit district to the extent provided in
5this section. The chapter 28E agreement may authorize the
6commission to levy the tax at different rates within the
7participating cities and counties in amounts sufficient to meet
8the revenue responsibilities of such cities and counties as
9allocated in the budget adopted by the commission. However,
10for a city participating in a regional transit district, the
11total of all the tax levies imposed in the city pursuant
12to section 384.12, subsection 10 1, and this section shall
13not exceed the aggregate of ninety-five cents per thousand
14dollars of the assessed value of all taxable property in the
15participating city.
16 Sec. 20. Section 37.8, Code 2023, is amended to read as
17follows:
1837.8 Levy for Cost of development, operation, and
19 maintenance.
20For the development, operation, and maintenance of a
21building or monument constructed, purchased, or donated under
22this chapter, a city may levy a tax not to exceed eighty-one
23cents per thousand dollars of assessed value on all the taxable
24property within the city, as provided in section 384.12,
25subsection 2 utilize taxes levied under section 384.1.
26 Sec. 21. Section 384.1, Code 2023, is amended to read as
27follows:
28384.1 Taxes certified.
291. A city may certify taxes to be levied by the county
30on all taxable property within the city limits, for all city
31government purposes. However, the
322. a. Notwithstanding subsection 3, thetax levied by
33a city on tracts of land and improvements thereon used and
34assessed for agricultural or horticultural purposes, shall
35not exceed three dollars and three-eighths cents per thousand
-10-1dollars of assessed value in any year. Improvements located
2on such tracts of land and not used for agricultural or
3horticultural purposes and all residential dwellings are
4subject to the same rate of tax levied by the city on all other
5taxable property within the city. A
63. a. For fiscal years beginning before July 1, 2024, a
7city’s tax levy for the general fund shall not exceed eight
8dollars and ten cents per thousand dollars of taxable assessed
9 value used to calculate taxes in any tax year, except for the
10levies authorized in section 384.12.
11b. For the fiscal year beginning July 1, 2024, a city’s
12tax levy for the general fund, except for levies authorized in
13section 384.12, shall not exceed the sum of eight dollars and
14ten cents per thousand dollars of taxable value plus the sum of
15the following for the city, as applicable:
16(1) The amount per thousand dollars of taxable value levied
17by or on behalf of the city under section 384.8, Code 2023, for
18the fiscal year beginning July 1, 2023.
19(2) The total amount per thousand dollars of taxable value
20levied by or on behalf of the city under section 384.12,
21subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, and
2220, Code 2023, for the fiscal year beginning July 1, 2023.
23(3) The amount per thousand dollars of taxable value levied
24by the city under section 24.48, Code 2023, for the fiscal year
25beginning July 1, 2023.
26c. (1) For each fiscal year beginning on or after July
271, 2025, subject to paragraph “d”, a city’s tax levy for the
28general fund, except for levies authorized in section 384.12,
29shall not exceed in any tax year the greater of eight dollars
30and ten cents per thousand dollars of assessed value used to
31calculate taxes for the budget year and the amount determined
32under paragraph “b”, as adjusted under subparagraph (2), if
33applicable.
34(2) If the total assessed value used to calculate taxes
35for the budget year exceeds one hundred three and one-fourth
-11-1percent of the total assessed value used to calculate taxes for
2the current fiscal year, the levy rate per thousand dollars
3determined under paragraph “b”, as previously adjusted under
4this subparagraph, if applicable, shall be reduced to a rate
5per one thousand dollars of assessed value that is equal to
6one thousand multiplied by the quotient of the current fiscal
7year’s actual property tax dollars certified for levy under
8this section divided by one hundred three and one-fourth
9percent of the total assessed value used to calculate taxes for
10the current fiscal year.
11d. In addition to the limitation under paragraph “c”, for
12fiscal years beginning on or after July 1, 2025, if the city’s
13actual levy rate imposed under this section for the current
14fiscal year is eight dollars and ten cents or less per thousand
15dollars of assessed value and the total assessed value used to
16calculate taxes for the budget year exceeds one hundred two and
17one-half percent of the total assessed value used to calculate
18taxes for the current fiscal year, the levy rate imposed under
19this section for the budget year shall not exceed a rate per
20one thousand dollars of assessed value that is equal to one
21thousand multiplied by the quotient of the current fiscal
22year’s actual property tax dollars certified for levy under
23this section divided by one hundred two and one-half percent
24of the total assessed value used to calculate taxes for the
25current fiscal year.
264. For purposes of this section:
27a. “Budget year” is the fiscal year beginning during the
28calendar year in which a budget is certified.
29b. “Current fiscal year” is the fiscal year ending during
30the calendar year in which a budget for the budget year is
31certified.
32 Sec. 22. Section 384.12, Code 2023, is amended to read as
33follows:
34384.12 Additional taxes.
35A city may certify, for the general fund levy, taxes which
-12-1are not subject to the limit provided in section 384.1, and
2which are in addition to any other moneys the city may wish to
3spend for such purposes, as follows:
41. A tax not to exceed thirteen and one-half cents
5per thousand dollars of assessed value for the support of
6instrumental or vocal musical groups, one or more organizations
7which have tax-exempt status under section 501(c)(3) of
8the Internal Revenue Code and are organized and operated
9exclusively for artistic and cultural purposes, or any of these
10purposes, subject to the following:
11a. Upon receipt of a petition valid under the provisions of
12section 362.4, the council shall submit to the voters at the
13next regular city election the question of whether a tax shall
14be levied.
15b. If a majority approves the levy, it may be imposed.
16c. The levy can be eliminated by the same procedure of
17petition and election.
18d. A tax authorized by an election held prior to the
19effective date of the city code may be continued until
20eliminated by the council, or by petition and election.
212. A tax not to exceed eighty-one cents per thousand dollars
22of assessed value for development, operation, and maintenance
23of a memorial building or monument, subject to the provisions
24of subsection 1.
253. A tax not to exceed thirteen and one-half cents per
26thousand dollars of assessed value for support of a symphony
27orchestra, subject to the provisions of subsection 1.
284. A tax not to exceed twenty-seven cents per thousand
29dollars of assessed value for the operation of cultural and
30scientific facilities, subject to the provisions of subsection
311, except that the question may be submitted on the council’s
32own motion.
335. A tax to aid in the construction of a county bridge,
34subject to the provisions of subsection 1, except that the
35question must be submitted at a special election. The expense
-13-1of a special election under this subsection must be paid by the
2county. The notice of the special election must include full
3details of the proposal, including the location of the proposed
4bridge, the rate of tax to be levied, and all other conditions.
56. A tax to aid a company incorporated under the laws of
6this state in the construction of a highway or combination
7bridge across any navigable boundary river of this state,
8commencing or terminating in the city and suitable for use
9as highway, or for both highway and railway purposes. This
10tax levy is subject to the provisions of subsections 1 and 5.
11The levy is limited to one dollar and thirty-five cents per
12thousand dollars of the assessed value of taxable property in
13the city. The estimated cost of the bridge must be at least
14ten thousand dollars, and the city aid may not exceed one-half
15of the estimated cost. The notice of the special election
16must include the name of the corporation to be aided, and all
17conditions required of the corporation. Tax moneys received
18for this purpose may not be paid over by the county treasurer
19until the city has filed a statement that the corporation has
20complied with all conditions.
217. If a tax has been voted for aid of a bridge under
22subsection 6, a further tax may be voted for the purpose of
23purchasing the bridge, subject to the provisions of subsection
241. The levy under this subsection is limited to three dollars
25and thirty-seven and one-half cents per thousand dollars of the
26assessed value of the taxable property in the city, payable in
27not less than ten annual installments.
288. A tax for the purpose of carrying out the terms of a
29contract for the use of a bridge by a city situated on a river
30over which a bridge has been built. The tax may not exceed
31sixty-seven and one-half cents per thousand dollars of assessed
32value each year.
339. A tax for aid to a public transportation company,
34subject to the procedure provided in subsection 1, except the
35question must be submitted at a special election. The levy is
-14-1limited to three and three-eighths cents per thousand dollars
2of assessed value. In addition to any other conditions the
3following requirements must be met before moneys received for
4this purpose may be paid over by the county treasurer:
5a. The public transportation company shall provide the city
6with copies of state and federal income tax returns for the
7five years preceding the year for which payment is contemplated
8or for such lesser period of time as the company has been in
9operation.
10b. The city shall, in any given year, be authorized to pay
11over only such sums as will yield not to exceed two percent
12of the public transportation company’s investment as the same
13is valued in its tax depreciation schedule, provided that
14corporate profits and losses for the five preceding years or
15for such lesser period of time as the company has been in
16operation shall not average in excess of a two percent net
17return. Taxes levied under this subsection may not be used to
18subsidize losses incurred prior to the election required by
19this subsection.
2010. 1. A tax for the operation and maintenance of a
21municipal transit system or for operation and maintenance of a
22regional transit district, and for the creation of a reserve
23fund for the system or district, in an amount not to exceed
24ninety-five cents per thousand dollars of assessed value each
25year, when the revenues from the transit system or district are
26insufficient for such purposes.
2711. If a city has entered into a lease of a building or
28complex of buildings to be operated as a civic center, a tax
29sufficient to pay the installments of rent and for maintenance,
30insurance and taxes not included in the lease rental payments.
3112. A tax not to exceed thirteen and one-half cents per
32thousand dollars of assessed value each year for operating and
33maintaining a civic center owned by a city.
3413. A tax not to exceed six and three-fourths cents per
35thousand dollars of assessed value for planning a sanitary
-15-1disposal project.
214. 2. A tax not to exceed twenty-seven cents per thousand
3dollars of assessed value each year for an aviation authority
4as provided in section 330A.15.
515. A tax not to exceed six and three-fourths cents per
6thousand dollars of assessed value each year for a levee
7improvement fund in special charter cities as provided in
8section 420.155.
916. A tax not to exceed twenty and one-half cents per
10thousand dollars of assessed value each year to maintain an
11institution received by gift or devise, subject to an election
12as required under subsection 1.
1317. 3. A tax to pay the premium costs on tort liability
14insurance, property insurance, and any other insurance that
15may be necessary in the operation of the city, the costs of a
16self-insurance program, the costs of a local government risk
17pool and amounts payable under any insurance agreements to
18provide or procure such insurance, self-insurance program, or
19local government risk pool.
2018. A tax to fund an emergency medical services district
21under chapter 357G.
2219. 4. A tax that exceeds any tax levy limit within this
23chapter, provided the question has been submitted at a special
24levy election and received a simple majority of the votes cast
25on the proposition to authorize the enumerated levy limit to be
26exceeded for the proposed budget year.
27a. The election may be held as specified in this subsection
28if notice is given by the city council, not later than
29forty-six days before the first Tuesday in March, to the county
30commissioner of elections that the election is to be held.
31b. An election under this subsection shall be held on
32the first Tuesday in March and be conducted by the county
33commissioner of elections in accordance with the law.
34c. The ballot question shall be in substantially the
35following form:
-16- 1WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........?
2(Vote for only one of the following choices.)
3CHANGE LEVY AMOUNT ...
4Add to the existing levy amount a tax for the purpose of
5.......... (state purpose of proposed levy) at a rate of ...
6(rate) which will provide an additional $.... (amount).
7KEEP CURRENT LEVY ...
8Continue under the current maximum rate of ..., providing
9$.... (amount).
10d. The commissioner of elections conducting the election
11shall notify the city officials and other county auditors where
12applicable, of the results within two days of the canvass which
13shall be held on the second day that is not a holiday following
14the special levy election, and beginning no earlier than 1:00
15p.m.on that day.
16e. Notice of the election shall be published twice in
17accordance with the provisions of section 362.3, except that
18the first such notice shall be given at least two weeks before
19the election.
20f. The cost of the election shall be borne by the city.
21g. The election provisions of this subsection shall
22supersede other provisions for elections only to the extent
23necessary to comply with the provisions of this subsection.
24h. The provisions of this subsection apply to all cities,
25however organized, including special charter cities which may
26adopt ordinances where necessary to carry out these provisions.
27i. The council shall certify the city’s budget with the tax
28askings not exceeding the amount approved by the special levy
29election.
3020. A tax not to exceed twenty-seven cents per thousand
31dollars of assessed value for support of a public library,
32subject to petition and referendum requirements of subsection
331, except that if a majority approves the levy, it shall be
34imposed.
3521. 5. A tax for the support of a local emergency
-17-1management commission established pursuant to chapter 29C.
2 Sec. 23. Section 384.22, subsection 1, Code 2023, is amended
3to read as follows:
41. Not later than December 1 of each year, a city shall
5publish an annual financial report as provided in section
6362.3 containing a summary for the preceding fiscal year of
7all collections and receipts, all accounts due the city, and
8all expenditures, the current public debt of the city, and the
9legal debt limit of the city for the current fiscal year. The
10annual financial report shall be prepared on forms and pursuant
11to instructions prescribed by the auditor of state. Beginning
12with the annual financial report published by December 1, 2024,
13each report shall include a list of bonds, notes, or other
14obligations issued by the city during the preceding fiscal year
15payable from any source, including the amount of the issuance,
16the project or purpose of the issuance, whether the issuance
17was approved at election, eligible to be subject to a petition
18for an election, or was exempt from approval at election as
19the result of statutory exclusions based on population of the
20city or amount of the issuance, and identification of issuances
21from the fiscal year or prior fiscal years related to the same
22project or purpose.
23 Sec. 24. Section 384.24, subsection 4, paragraph i, Code
242023, is amended by striking the paragraph.
25 Sec. 25. Section 384.24A, subsection 4, paragraph a,
26subparagraphs (1), (2), and (3), Code 2023, are amended to read
27as follows:
28(1) Four Five hundred twenty thousand dollars in a city
29having a population of five thousand or less.
30(2) Seven Nine hundred ten thousand dollars in a city having
31a population of more than five thousand but not more than
32seventy-five thousand.
33(3) One million three hundred thousand dollars in a city
34having a population of more than seventy-five thousand.
35 Sec. 26. Section 384.25, subsection 2, Code 2023, is amended
-18-1to read as follows:
22. Before the council may institute proceedings for the
3issuance of bonds for an essential corporate purpose, a notice
4of the proposed action, including a statement of the amount
5and purposes of the bonds, and an estimate of the annual
6increase in property taxes as the result of the bond issuance
7on a residential property with an actual value of one hundred
8thousand dollars, and the time and place of the meeting at
9which the council proposes to take action for the issuance of
10the bonds, must be published as provided in section 362.3.
11At the meeting, the council shall receive oral or written
12objections from any resident or property owner of the city.
13After all objections have been received and considered, the
14council may, at that meeting or any adjournment thereof, take
15additional action for the issuance of the bonds or abandon the
16proposal to issue the bonds. Any resident or property owner
17of the city may appeal the decision of the council to take
18additional action to the district court of the county in which
19any part of the city is located, within fifteen days after the
20additional action is taken, but the additional action of the
21council is final and conclusive unless the court finds that
22the council exceeded its authority. The provisions of this
23subsection with respect to notice, hearing, and appeal, are in
24lieu of the provisions contained in chapter 73A, or any other
25law.
26 Sec. 27. Section 384.26, subsection 2, Code 2023, is amended
27to read as follows:
282. a. The board shall publish notice of the proposal
29to issue the bonds, including a statement of the amount and
30purpose of the bonds, a statement of the estimated cost of the
31project for which the bonds are to be issued, and an estimate
32of the annual increase in property taxes as the result of
33the bond issuance on a residential property with an actual
34value of one hundred thousand dollars. The notice shall be
35published as provided in section 362.3 with the minutes of
-19-1the meeting at which the council adopts a resolution to call
2a special election to vote upon the question of issuing the
3bonds. The cost of the project, as published in the notice
4pursuant to this paragraph, is an estimate and is not intended
5to be binding on the board in later proceedings related to the
6project.
7b. Before the council may institute proceedings for the
8issuance of bonds for a general corporate purpose, it shall
9call a special city election to vote upon the question of
10issuing the bonds. At the election the proposition must be
11submitted in the following form:
12Shall the ............ (insert the name of the city) issue
13its bonds in an amount not exceeding the amount of $.... for
14the purpose of ..........?
15 Sec. 28. Section 384.26, subsection 5, paragraph a,
16subparagraphs (1), (2), and (3), Code 2023, are amended to read
17as follows:
18(1) In cities having a population of five thousand or less,
19in an amount of not more than four five hundred twenty thousand
20dollars.
21(2) In cities having a population of more than five thousand
22and not more than seventy-five thousand, in an amount of not
23more than seven nine hundred ten thousand dollars.
24(3) In cities having a population in excess of seventy-five
25thousand, in an amount of not more than one million three
26hundred thousand dollars.
27 Sec. 29. Section 384.110, Code 2023, is amended to read as
28follows:
29384.110 Insurance, self-insurance, and risk pooling funds.
30A city may credit funds to a fund or funds for the purposes
31authorized by section 364.4, subsection 5; section 384.12,
32subsection 17 3; or section 384.24, subsection 3, paragraph “s”.
33Moneys credited to the fund or funds, and interest earned on
34such moneys, shall remain in the fund or funds until expended
35for purposes authorized by section 364.4, subsection 5; section
-20-1384.12, subsection 17 3; or section 384.24, subsection 3,
2paragraph “s”.
3 Sec. 30. REPEAL. Section 384.8, Code 2023, is repealed.
4 Sec. 31. EFFECTIVE DATE. This division of this Act takes
5effect July 1, 2024.
6 Sec. 32. APPLICABILITY. This division of this Act applies
7to taxes and budgets for fiscal years beginning on or after
8July 1, 2024.
9DIVISION III
10public education and recreation tax levy
11 Sec. 33. Section 276.1, Code 2023, is amended to read as
12follows:
13276.1 Title.
14This section, sections 276.2 through 276.5, and sections
15276.8 through 276.11 276.10 of this chapter shall be known and
16may be cited as the “Iowa Community Education Act”.
17 Sec. 34. Section 276.3, unnumbered paragraph 1, Code 2023,
18is amended to read as follows:
19As used in sections 276.1, 276.2, this section, sections
20276.4, 276.5, and sections 276.8 through 276.11 276.10, unless
21the context otherwise requires:
22 Sec. 35. Section 276.10, subsection 1, Code 2023, is amended
23to read as follows:
241. The board of directors of a local school district
25may establish a community education program for schools in
26the district and provide for the general supervision of the
27program. Financial support for the program shall may be
28provided from funds raised pursuant to chapter 300 received by
29the school district under chapter 423F and from any private
30funds and any federal funds made available for the purpose of
31implementing this chapter. The program which recognizes that
32the schools belong to the people and which shall be centered
33in the schools may include but shall not be limited to the use
34of the school facilities day and night, year round including
35weekends and regular school vacation periods for educational,
-21-1recreational, cultural, and other community services and
2programs for all age, ethnic, and socioeconomic groups residing
3in the community.
4 Sec. 36. Section 278.1, subsection 1, paragraph e, Code
52023, is amended to read as follows:
6e. Direct the transfer of any surplus in the debt service
7fund, physical plant and equipment levy fund, or other capital
8project funds, or public education and recreation levy fund to
9the general fund.
10 Sec. 37. Section 298A.6, Code 2023, is amended to read as
11follows:
12298A.6 Public education and recreation levy fund.
13The public education and recreation levy fund is a special
14revenue fund. A public education and recreation levy fund
15must be established in any school corporation which levies
16 levied the tax authorized under section 300.2, Code 2023, or
17which receives received revenue from a chapter 28E agreement
18authorized under section 300.1, Code 2023. Moneys available in
19the fund at the conclusion of the fiscal year beginning July 1,
202026, and ending June 30, 2027, shall be expended by the school
21corporation for the purposes authorized under chapter 300, Code
222023.
23 Sec. 38. Section 300.2, Code 2023, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 4. a. A levy under this chapter shall not
26be approved by the voters on or after the effective date of
27this section of this division of this Act.
28b. If the levy has not been discontinued under section
29300.3, the authorization to impose the levy under this chapter
30shall terminate July 1, 2027.
31c. Notwithstanding subsection 2, including a proposition
32approved at an election held before the effective date of
33this section of this division of this Act, the rate of a levy
34imposed by a board of directors under this chapter for the
35fiscal year beginning July 1, 2026, shall not exceed one-half
-22-1of the levy rate imposed by the board of directors for the
2fiscal year beginning July 1, 2025.
3 Sec. 39. Section 423F.3, subsection 1, paragraph c, Code
42023, is amended by striking the paragraph.
5 Sec. 40. Section 423F.5, subsection 1, Code 2023, is amended
6to read as follows:
71. A school district shall include as part of its financial
8audit for the budget year beginning July 1, 2007, and for
9each subsequent budget year the amount received during the
10year pursuant to chapter 423E or this chapter, as applicable.
11In addition, the financial audit shall include the amount
12of bond levies, and physical plant and equipment levy, and
13public educational and recreational levy reduced as a result
14of the moneys received under chapter 423E or this chapter,
15as applicable. The amount of the reductions shall be stated
16in terms of dollars and cents per one thousand dollars of
17valuation and in total amount of property tax dollars. Also
18included shall be an accounting of the amount of moneys
19received which were spent for infrastructure purposes pursuant
20to chapter 423E or this chapter, as applicable.
21 Sec. 41. REPEAL. Sections 276.11 and 276.12, Code 2023,
22are repealed.
23 Sec. 42. REPEAL. Chapter 300, Code 2023, is repealed.
24 Sec. 43. EFFECTIVE DATE. Except as otherwise provided in
25this division of this Act, this division of this Act takes
26effect July 1, 2027.
27 Sec. 44. EFFECTIVE DATE. The following, being deemed of
28immediate importance, takes effect upon enactment:
29The section of this division of this Act enacting section
30300.2, subsection 4.
31 Sec. 45. APPLICABILITY. Except for the section of this
32division of this Act enacting section 300.2, subsection 4, this
33division of this Act applies to fiscal years beginning on or
34after July 1, 2027.
35DIVISION IV
-23-1BRUCELLOSIS AND TUBERCULOSIS ERADICATION FUND — LEVY
2 Sec. 46. Section 165.18, subsections 2 and 3, Code 2023, are
3amended by striking the subsections.
4 Sec. 47. Section 331.512, subsection 1, paragraph e, Code
52023, is amended by striking the paragraph.
6 Sec. 48. Section 331.559, subsection 2, Code 2023, is
7amended by striking the subsection.
8 Sec. 49. EFFECTIVE DATE. This division of this Act takes
9effect July 1, 2024.
10 Sec. 50. APPLICABILITY. This division of this Act applies
11to property taxes due and payable in fiscal years beginning on
12or after July 1, 2024.
13DIVISION V
14COUNTY SEATS
15 Sec. 51. Section 331.301, Code 2023, is amended by adding
16the following new subsection:
17 NEW SUBSECTION. 9A. Pursuant to the general grant of home
18rule power conferred by the Constitution of the State of Iowa
19and if not inconsistent with the laws of the general assembly,
20a county that has designated more than one city to be a county
21seat may consolidate or reduce the number of county seats by
22ordinance.
23 Sec. 52. REPEAL. 1848 Iowa Acts, First Extraordinary
24Session, chapter 52, is repealed.
25 Sec. 53. EFFECTIVE DATE. This division of this Act, being
26deemed of immediate importance, takes effect upon enactment.
27DIVISION VI
28COUNTY SHERIFF FEE REPORT
29 Sec. 54. Section 331.655, subsection 5, Code 2023, is
30amended by striking the subsection.
31DIVISION VII
32Homestead property tax credit
33 Sec. 55. Section 2.48, subsection 3, paragraph f,
34subparagraph (1), Code 2023, is amended to read as follows:
35(1) The homestead tax exemption and credit under chapter
-24-1425.
2 Sec. 56. Section 103.22, subsection 7, Code 2023, is amended
3to read as follows:
47. Prohibit an owner of property from performing work on the
5owner’s principal residence, if such residence is an existing
6dwelling rather than new construction and is not an apartment
7that is attached to any other apartment or building, as those
8terms are defined in section 499B.2, and is not larger than a
9single-family dwelling, or require such owner to be licensed
10under this chapter. In order to qualify for inapplicability
11pursuant to this subsection, a residence shall qualify for the
12homestead tax exemption credit.
13 Sec. 57. Section 105.11, subsection 3, Code 2023, is amended
14to read as follows:
153. Prohibit an owner of property from performing work on the
16owner’s principal residence, if such residence is an existing
17dwelling rather than new construction and is not larger than a
18single-family dwelling, or farm property, excluding commercial
19or industrial installations or installations in public use
20buildings or facilities, or require such owner to be licensed
21under this chapter. In order to qualify for inapplicability
22pursuant to this subsection, a residence shall qualify for the
23homestead tax exemption credit.
24 Sec. 58. Section 331.401, subsection 1, paragraphs e and f,
25Code 2023, are amended to read as follows:
26e. Adopt resolutions authorizing the county assessor
27to provide forms for homestead tax exemption and credit
28 claimants as provided in section 425.2 and military service tax
29exemptions as provided in section 426A.14.
30f. Examine and allow or disallow claims for homestead tax
31 exemption and credit in accordance with section 425.3 and
32claims for military service tax exemption in accordance with
33chapter 426A. The board, by a single resolution, may allow or
34disallow the exemptions recommended by the assessor.
35 Sec. 59. Section 331.512, subsection 3, Code 2023, is
-25-1amended to read as follows:
23. Carry out duties relating to the homestead tax exemption
3and credit and agricultural land tax credit as provided in
4chapters 425 and 426.
5 Sec. 60. Section 331.559, subsection 12, Code 2023, is
6amended to read as follows:
712. Carry out duties relating to the administration of
8the homestead tax exemption and credit and other credits as
9provided in sections 425.4, 425.5, 425.7, 425.9, 425.10, and
10425.25.
11 Sec. 61. NEW SECTION. 425.1A Homestead tax exemption.
121. The following exemptions from taxation shall be allowed
13in addition to the homestead credit for an owner that has
14attained the age of sixty-five years by January 1 of the
15assessment year:
16a. For the assessment year beginning January 1, 2024, the
17eligible homestead, not to exceed three thousand two hundred
18fifty dollars in taxable value.
19b. For the assessment year beginning January 1, 2025, and
20each succeeding assessment year, the eligible homestead, not to
21exceed six thousand five hundred dollars in taxable value.
222. Section 25B.7, subsection 1, shall not apply to the
23property tax exemption provided in this section.
24 Sec. 62. Section 425.2, Code 2023, is amended by adding the
25following new subsection:
26 NEW SUBSECTION. 3A. The form for claiming the credit shall
27also include the ability to claim the exemption under section
28425.1A for qualified owners. If the claim for the homestead
29credit is allowed, such allowance shall also include allowance
30of the homestead exemption if the owner meets the age criteria
31for the exemption. The homestead exemption shall be allowed
32for successive years without further filing in the same manner
33as the homestead credit.
34 Sec. 63. Section 425.3, subsection 4, Code 2023, is amended
35to read as follows:
-26- 14. The county auditor shall forward the claims to the board
2of supervisors. The board shall allow or disallow the claims.
3If the board disallows a claim, it shall send written notice,
4by mail, to the claimant at the claimant’s last known address.
5The notice shall state the reasons for disallowing the claim
6for the credit. The board is not required to send notice that
7a claim is disallowed if the claimant voluntarily withdraws the
8claim.
9 Sec. 64. Section 425.4, Code 2023, is amended to read as
10follows:
11425.4 Certification to treasurer.
12All claims which have been allowed by the board of
13supervisors shall be certified on or before August 1, in each
14year, by the county auditor to the county treasurer, which
15certificates shall list the total amount of dollars, listed by
16taxing district in the county, due for homestead tax exemptions
17and credits claimed and allowed. The county treasurer shall
18forthwith then certify to the department of revenue the total
19amount of dollars, listed by taxing district in the county, due
20for homestead tax exemptions and credits claimed and allowed.
21 Sec. 65. Section 425.6, Code 2023, is amended to read as
22follows:
23425.6 Waiver by neglect.
24If a person fails to file a claim or to have a claim on file
25with the assessor for the credits provided in this subchapter,
26the person is deemed to have waived the homestead exemption
27and credit for the year in which the person failed to file the
28claim or to have a claim on file with the assessor.
29 Sec. 66. Section 425.7, subsection 3, Code 2023, is amended
30to read as follows:
313. a. If the department of revenue determines that a claim
32for homestead exemption and credit has been allowed by the
33board of supervisors which is not justifiable under the law
34and not substantiated by proper facts, the department may, at
35any time within thirty-six months from July 1 of the year in
-27-1which the claim is allowed, set aside the allowance. Notice
2of the disallowance shall be given to the county auditor of
3the county in which the claim has been improperly granted and
4a written notice of the disallowance shall also be addressed
5to the claimant at the claimant’s last known address. The
6claimant or board of supervisors may appeal to the director
7of revenue within thirty days from the date of the notice of
8disallowance. The director shall grant a hearing and if, upon
9the hearing, the director determines that the disallowance was
10incorrect, the director shall set aside the disallowance. The
11director shall notify the claimant and the board of supervisors
12of the result of the hearing. The claimant or the board of
13supervisors may seek judicial review of the action of the
14director of revenue in accordance with chapter 17A.
15b. If a claim is disallowed by the department of revenue
16and not appealed to the director of revenue or appealed to
17the director of revenue and thereafter upheld upon final
18resolution, including any judicial review, any amounts of
19exemptions allowed and credits allowed and paid from the
20homestead credit fund including the penalty, if any, become a
21lien upon the property on which the exemption or credit was
22originally granted, if still in the hands of the claimant,
23and not in the hands of a bona fide purchaser, and any amount
24so erroneously paid including the penalty, if any, shall be
25collected by the county treasurer in the same manner as other
26taxes and the collections shall be returned to the department
27of revenue and credited to the homestead credit fund. The
28director of revenue may institute legal proceedings against a
29homestead credit claimant for the collection of payments made
30on disallowed credits and the penalty, if any. If a person
31makes a false claim or affidavit with fraudulent intent to
32obtain the homestead exemption or credit, the person is guilty
33of a fraudulent practice and the claim shall be disallowed
34in full. If the credit has been paid, the amount of the
35credit plus a penalty equal to twenty-five percent of the
-28-1amount of credit plus interest, at the rate in effect under
2section 421.7, from the time of payment shall be collected
3by the county treasurer in the same manner as other property
4taxes, penalty, and interest are collected and when collected
5shall be paid to the director of revenue. If a homestead
6exemption or credit is disallowed and the claimant failed to
7give written notice to the assessor as required by section
8425.2 when the property ceased to be used as a homestead by the
9claimant, a civil penalty equal to five percent of the amount
10of the disallowed exemption or credit is assessed against the
11claimant.
12 Sec. 67. Section 425.9, subsections 2, 3, and 4, Code 2023,
13are amended to read as follows:
142. If any claim for exemption or credit made hereunder
15 has been denied by the board of supervisors, and such action
16is subsequently reversed on appeal, the exemption or credit
17shall be allowed on the homestead involved in said appeal, and
18the director of revenue, the county auditor, and the county
19treasurer shall make such exemption or credit and change their
20books and records accordingly.
213. In the event the appealing taxpayer has paid one or both
22of the installments of the tax payable in the year or years in
23question on such homestead valuation, remittance shall be made
24to such taxpayer of the amount of such credit or exemption.
254. The amount of such credit shall be allocated and paid
26from the surplus redeposited in the homestead credit fund
27provided for in subsection 1. The amount of such exemption not
28covered by the credit shall be allowed as a credit on future
29taxes due and payable.
30 Sec. 68. Section 425.10, Code 2023, is amended to read as
31follows:
32425.10 Reversal of allowed claim.
33In the event any claim is allowed, and subsequently reversed
34on appeal, any exemption and credit made under the claim
35shall be void. The amount of the erroneous exemption and
-29-1 credit shall be charged against the property in question, and
2the director of revenue, the county auditor, and the county
3treasurer are authorized and directed to correct their books
4and records accordingly. The amount of the erroneous credit,
5when collected, shall be returned by the county treasurer to
6the homestead credit fund to be reallocated the following year
7as provided in this subchapter.
8 Sec. 69. Section 425.11, subsection 1, paragraph d,
9subparagraph (3), Code 2023, is amended to read as follows:
10(3) It must not embrace more than one dwelling house, but
11where a homestead has more than one dwelling house situated
12thereon, the exemption and credit provided for in this
13subchapter shall apply to the home and buildings used by the
14owner, but shall not apply to any other dwelling house and
15buildings appurtenant.
16 Sec. 70. Section 425.11, subsection 1, paragraph e, Code
172023, is amended to read as follows:
18e. “Owner” means the person who holds the fee simple
19title to the homestead, and in addition shall mean the person
20occupying as a surviving spouse or the person occupying under
21a contract of purchase which contract has been recorded in
22the office of the county recorder of the county in which the
23property is located; or the person occupying the homestead
24under devise or by operation of the inheritance laws where
25the whole interest passes or where the divided interest is
26shared only by persons related or formerly related to each
27other by blood, marriage or adoption; or the person occupying
28the homestead is a shareholder of a family farm corporation
29that owns the property; or the person occupying the homestead
30under a deed which conveys a divided interest where the divided
31interest is shared only by persons related or formerly related
32to each other by blood, marriage or adoption; or where the
33person occupying the homestead holds a life estate with the
34reversion interest held by a nonprofit corporation organized
35under chapter 504, provided that the holder of the life estate
-30-1is liable for and pays property tax on the homestead; or where
2the person occupying the homestead holds an interest in a
3horizontal property regime under chapter 499B, regardless
4of whether the underlying land committed to the horizontal
5property regime is in fee or as a leasehold interest, provided
6that the holder of the interest in the horizontal property
7regime is liable for and pays property tax on the homestead;
8or where the person occupying the homestead is a member of a
9community land trust as defined in 42 U.S.C. §12773, regardless
10of whether the underlying land is in fee or as a leasehold
11interest, provided that the member of the community land trust
12is occupying the homestead and is liable for and pays property
13tax on the homestead. For the purpose of this subchapter,
14the word “owner” shall be construed to mean a bona fide owner
15and not one for the purpose only of availing the person of
16the benefits of this subchapter. In order to qualify for the
17homestead tax exemption and credit, evidence of ownership shall
18be on file in the office of the clerk of the district court
19or recorded in the office of the county recorder at the time
20the owner files with the assessor a verified statement of the
21homestead claimed by the owner as provided in section 425.2.
22 Sec. 71. Section 425.12, Code 2023, is amended to read as
23follows:
24425.12 Indian land.
25Each forty acres of land, or fraction thereof, occupied by
26a member or members of the Sac and Fox Indians in Tama county,
27which land is held in trust by the secretary of the interior of
28the United States for said Indians, shall be given a homestead
29tax exemption and credit within the meaning and under the
30provisions of this subchapter. Application for such homestead
31tax exemption and credit shall be made to the county auditor of
32Tama county and may be made by a representative of the tribal
33council.
34 Sec. 72. Section 425.13, Code 2023, is amended to read as
35follows:
-31- 1425.13 Conspiracy to defraud.
2If any two or more persons conspire and confederate together
3with fraudulent intent to obtain the exemption or credit
4provided for under the terms of this subchapter by making a
5false deed, or a false contract of purchase, they are guilty of
6a fraudulent practice.
7 Sec. 73. Section 425.16, subsection 1, Code 2023, is amended
8to read as follows:
91. In addition to the homestead tax credit allowed under
10section 425.1, subsections 1 through 4, and the homestead
11exemption under section 425.lA, if applicable, persons who
12own or rent their homesteads and who meet the qualifications
13provided in this subchapter are eligible for a property
14tax credit for property taxes due or reimbursement of rent
15constituting property taxes paid.
16 Sec. 74. Section 425.17, subsections 4 and 8, Code 2023, are
17amended to read as follows:
184. “Homestead” means the dwelling owned or rented and
19actually used as a home by the claimant during the period
20specified in subsection 2, and so much of the land surrounding
21it including one or more contiguous lots or tracts of land,
22as is reasonably necessary for use of the dwelling as a home,
23and may consist of a part of a multidwelling or multipurpose
24building and a part of the land upon which it is built. It
25does not include personal property except that a manufactured
26or mobile home may be a homestead. Any dwelling or a part of
27a multidwelling or multipurpose building which is exempt from
28taxation, except for an exemption under section 425.1A, does
29not qualify as a homestead under this subchapter. However,
30solely for purposes of claimants living in a property and
31receiving reimbursement for rent constituting property taxes
32paid immediately before the property becomes tax exempt, and
33continuing to live in it after it becomes tax exempt, the
34property shall continue to be classified as a homestead.
35A homestead must be located in this state. When a person
-32-1is confined in a nursing home, extended-care facility, or
2hospital, the person shall be considered as occupying or living
3in the person’s homestead if the person is the owner of the
4homestead and the person maintains the homestead and does not
5lease, rent, or otherwise receive profits from other persons
6for the use of the homestead.
78. “Property taxes due” means property taxes including any
8special assessments, but exclusive of delinquent interest and
9charges for services, due on a claimant’s homestead in this
10state, but includes only property taxes for which the claimant
11is liable and which will actually be paid by the claimant.
12However, if the claimant is a person whose property taxes have
13been suspended under sections 427.8 and 427.9, “property taxes
14due” means property taxes including any special assessments,
15but exclusive of delinquent interest and charges for services,
16due on a claimant’s homestead in this state, but includes only
17property taxes for which the claimant is liable and which would
18have to be paid by the claimant if the payment of the taxes
19has not been suspended pursuant to sections 427.8 and 427.9.
20“Property taxes due” shall be computed with no deduction for
21any credit under this subchapter or for any homestead exemption
22under section 425.1A or credit allowed under section 425.1
23subchapter I. Each claim shall be based upon the taxes due
24during the fiscal year next following the base year. If a
25homestead is owned by two or more persons as joint tenants or
26tenants in common, and one or more persons are not members
27of claimant’s household, “property taxes due” is that part of
28property taxes due on the homestead which equals the ownership
29percentage of the claimant and the claimant’s household. The
30county treasurer shall include with the tax receipt a statement
31that if the owner of the property is eighteen years of age
32or over, the person may be eligible for the credit allowed
33under this subchapter. If a homestead is an integral part
34of a farm, the claimant may use the total property taxes due
35for the larger unit. If a homestead is an integral part of a
-33-1multidwelling or multipurpose building the property taxes due
2for the purpose of this subsection shall be prorated to reflect
3the portion which the value of the property that the household
4occupies as its homestead is to the value of the entire
5structure. For purposes of this subsection, “unit” refers to
6that parcel of property covered by a single tax statement of
7which the homestead is a part.
8 Sec. 75. Section 435.26, subsection 1, paragraph a, Code
92023, is amended to read as follows:
10a. A mobile home or manufactured home which is located
11outside a manufactured home community or mobile home park shall
12be converted to real estate by being placed on a permanent
13foundation and shall be assessed for real estate taxes. A
14home, after conversion to real estate, is eligible for the
15homestead tax exemption and credit and the military service
16tax exemption as provided in sections 425.2 and chapter 425,
17subchapter I, and section 426A.11. A taxable mobile home or
18manufactured home which is located outside of a manufactured
19home community or mobile home park as of January 1, 1995, is
20also exempt from the permanent foundation requirements of this
21chapter until the home is relocated.
22 Sec. 76. Section 435.26A, subsection 3, Code 2023, is
23amended to read as follows:
243. After the surrender of a manufactured home’s certificate
25of title under this section, the manufactured home shall
26continue to be taxed under section 435.22 and is not eligible
27for the homestead tax exemption and credit or the military
28service tax exemption and credit. A foreclosure action on a
29manufactured home whose title has been surrendered under this
30section shall be conducted as a real estate foreclosure. A tax
31lien and its priority shall remain the same on a manufactured
32home after its certificate of title has been surrendered.
33 Sec. 77. Section 499A.14, Code 2023, is amended to read as
34follows:
35499A.14 Taxation.
-34- 1The real estate shall be taxed in the name of the
2cooperative, and each member of the cooperative shall pay
3that member’s proportionate share of the tax in accordance
4with the proration formula set forth in the bylaws, and each
5member occupying an apartment as a residence shall receive
6that member’s proportionate homestead tax exemption and credit
7and each veteran of the military services of the United States
8identified as such under the laws of the state of Iowa or the
9United States shall receive as a credit that member’s veterans
10tax benefit as prescribed by the laws of the state of Iowa.
11 Sec. 78. EXISTING HOMESTEAD CLAIMS. Homestead credit
12claims approved under chapter 425, subchapter I, prior to and
13valid on the effective date of this division of this Act shall
14result in a homestead exemption under chapter 425, subchapter
15I, as enacted in this division of this Act, without further
16filing by the claimant if the claimant meets the criteria for
17the exemption and the assessor has appropriate information to
18verify such eligibility.
19 Sec. 79. APPLICABILITY. This division of this Act applies
20to assessment years beginning on or after January 1, 2024.
21DIVISION VIII
22ELDERLY PROPERTY TAX CREDIT
23 Sec. 80. Section 425.23, subsection 1, paragraph c,
24subparagraph (2), Code 2023, is amended to read as follows:
25(2) The difference between the actual amount of net
26 property taxes due on the homestead during the fiscal year next
27following the base year minus the actual amount of net property
28taxes due on the homestead during the first fiscal year for
29which the claimant filed a claim for a credit calculated under
30this paragraph “c” and for which the property taxes due on the
31homestead were calculated on an assessed valuation that was
32not a partial assessment and if the claimant has filed for the
33credit calculated under this paragraph “c” for each of the
34subsequent fiscal years after the first credit claimed.
35 Sec. 81. Section 425.23, subsection 2, Code 2023, is amended
-35-1to read as follows:
22. a. The Except as provided in paragraph “b”, the
3 actual credit for property taxes due shall be determined
4by subtracting from the tentative credit the amount of the
5homestead credit under section 425.1 which is allowed as a
6credit against property taxes due in the fiscal year next
7following the base year by the claimant or any person of
8the claimant’s household. If the subtraction produces a
9negative amount, there shall be no credit but no refund shall
10be required. The actual reimbursement for rent constituting
11property taxes paid shall be equal to the tentative
12reimbursement.
13b. If the claimant’s tentative credit is the amount
14determined under subsection 1, paragraph “c”, subparagraph (2),
15the actual credit amount shall be equal to the tentative credit
16amount.
17 Sec. 82. EFFECTIVE DATE. This division of this Act, being
18deemed of immediate importance, takes effect upon enactment.
19 Sec. 83. RETROACTIVE APPLICABILITY. This division of
20this Act applies retroactively to claims under chapter 425,
21subchapter II, filed on or after January 1, 2022.
22DIVISION IX
23MILITARY SERVICE PROPERTY TAX EXEMPTION AND CREDIT
24 Sec. 84. Section 25B.7, subsection 2, paragraph c, Code
252023, is amended by striking the paragraph.
26 Sec. 85. Section 426A.1A, Code 2023, is amended to read as
27follows:
28426A.1A Appropriation.
29There For each fiscal year beginning before July 1, 2025,
30there is appropriated from the general fund of the state the
31amounts necessary to fund the credits provided under this
32chapter.
33 Sec. 86. Section 426A.2, Code 2023, is amended to read as
34follows:
35426A.2 Military service tax credit.
-36- 1The For each fiscal year beginning before July 1, 2025, the
2 moneys appropriated under section 426A.1A shall be apportioned
3each year so as to replace all or a portion of the tax which
4would be due on property eligible for military service tax
5exemption in the state, if the property were subject to
6taxation, the amount of the credit to be not more than six
7dollars and ninety-two cents per thousand dollars of assessed
8value of property which would be subject to the tax, except for
9the military service tax exemption.
10 Sec. 87. Section 426A.11, subsections 1 and 2, Code 2023,
11are amended to read as follows:
121. The property, not to exceed two thousand seven hundred
13seventy-eight dollars in taxable value for assessment years
14beginning before January 1, 2024, of any veteran, as defined in
15section 35.1, of World War I.
162. a. The property, not to exceed one thousand eight
17hundred fifty-two dollars in taxable value for assessment years
18beginning before January 1, 2024, of an honorably separated,
19retired, furloughed to a reserve, placed on inactive status,
20or discharged veteran, as defined in section 35.1, subsection
212, paragraph “a” or “b”.
22b. The property, not to exceed four thousand dollars in
23taxable value for the assessment years beginning on or after
24January 1, 2024, of an honorably separated, retired, furloughed
25to a reserve, placed on inactive status, or discharged veteran,
26as defined in section 35.1, subsection 2, paragraph “a” or “b”.
27 Sec. 88. IMPLEMENTATION. Section 25B.7, subsection 1,
28shall not apply to the property tax exemption provided in this
29Act.
30 Sec. 89. APPLICABILITY. This division of this Act applies
31to assessment years beginning on or after January 1, 2024.
32DIVISION X
33Property tax benefits and incentives
34 Sec. 90. NEW SECTION. 404.3C Assessment agreements —
35commercial property.
-37- 11. For revitalization areas established under this chapter
2on or after the effective date of this division of this Act
3and for first-year exemption applications for property located
4in a revitalization area in existence on the effective date
5of this division of this Act filed on or after the effective
6date of this division of this Act, commercial property shall
7not receive a tax exemption under this chapter unless the city
8or county, as applicable, and the owner of the qualified real
9estate enter into a written assessment agreement specifying a
10minimum actual value until a specified termination date for the
11duration of the exemption period.
122. a. The assessment agreement shall be presented to the
13appropriate assessor. The assessor shall review the plans and
14specifications for the improvements to be made to the property
15and if the minimum actual value contained in the assessment
16agreement appears to be reasonable, the assessor shall execute
17the following certification upon the agreement:
18 The undersigned assessor, being legally responsible for the
19assessment of the above described property upon completion of
20the improvements to be made on it, certifies that the actual
21value assigned to that land and improvements upon completion
22shall not be less than $.........
23b. The assessment agreement with the certification of
24the assessor and a copy of this subsection shall be filed in
25the office of the county recorder of the county where the
26property is located. Upon completion of the improvements,
27the assessor shall value the property as required by law,
28except that the actual value shall not be less than the minimum
29actual value contained in the assessment agreement. This
30subsection does not prohibit the assessor from assigning a
31higher actual value to the property or prohibit the owner
32from seeking administrative or legal remedies to reduce the
33actual value assigned except that the actual value shall not
34be reduced below the minimum actual value contained in the
35assessment agreement. An assessor, county auditor, board of
-38-1review, director of revenue, or court of this state shall not
2reduce or order the reduction of the actual value below the
3minimum actual value in the agreement during the term of the
4agreement regardless of the actual value which may result from
5the incomplete construction of improvements, destruction or
6diminution by any cause, insured or uninsured, except in the
7case of acquisition or reacquisition of the property by a
8public entity. Recording of an assessment agreement complying
9with this subsection constitutes notice of the assessment
10agreement to a subsequent purchaser or encumbrancer of the land
11or any part of it, whether voluntary or involuntary, and is
12binding upon a subsequent purchaser or encumbrancer.
13 Sec. 91. NEW SECTION. 404.3D Exemptions for residential
14property.
15For revitalization areas established under this chapter on
16or after the effective date of this division of this Act and
17for first-year exemption applications for property located in a
18revitalization area in existence on the effective date of this
19division of this Act filed on or after the effective date of
20this division of this Act, an exemption authorized under this
21chapter for property that is residential property shall not
22apply to property tax levies imposed by a school district.
23 Sec. 92. EFFECTIVE DATE. This division of this Act takes
24effect July 1, 2024.
25DIVISION XI
26transit funding
27 Sec. 93. Section 364.2, subsection 4, paragraph f,
28subparagraph (1), subparagraph division (b), Code 2023, is
29amended to read as follows:
30(b) For franchise fees assessed and collected during fiscal
31years beginning on or after July 1, 2013 2024, but before
32July 1, 2030, by a city that is the subject of a judgment,
33court-approved settlement, or court-approved compromise
34providing for payment of restitution, a refund, or a return
35described in section 384.3A, subsection 3, paragraph “j” with
-39-1a population exceeding two hundred thousand, the rate of the
2franchise fee shall not exceed seven and one-half percent
3of gross revenues generated from sales of the franchisee in
4the city, and franchise fee amounts assessed and collected
5during such fiscal years in excess of five percent of gross
6revenues generated from sales shall be used solely for the
7purpose specified in section 384.3A, subsection 3, paragraph
8“j”. A city may assess and collect a franchise fee in excess
9of five percent of gross revenues generated from the sales
10of the franchisee pursuant to this subparagraph division (b)
11for a period not to exceed seven consecutive fiscal years
12once the franchise fee is first imposed at a rate in excess
13of five percent. An ordinance increasing the franchise fee
14rate to greater than five percent pursuant to this subparagraph
15division (b) shall not become effective unless approved at
16an election. After passage of the ordinance, the council
17shall submit the proposal at a special election held on a date
18specified in section 39.2, subsection 4, paragraph “b”. If a
19majority of those voting on the proposal approves the proposal,
20the city may proceed as proposed. The complete text of the
21ordinance shall be included on the ballot and the full text
22of the ordinance posted for the voters pursuant to section
2352.25. All absentee voters shall receive the full text of the
24ordinance along with the absentee ballot. This subparagraph
25division (b) is repealed July 1, 2030.
26 Sec. 94. Section 384.3A, subsection 3, paragraph j, Code
272023, is amended to read as follows:
28j. For franchise fees assessed and collected by a city in
29excess of five percent of gross revenues generated from sales
30of the franchisee within the city pursuant to section 364.2,
31subsection 4, paragraph “f”, subparagraph (1), subparagraph
32division (b), during fiscal years beginning on or after July 1,
332013 2024, but before July 1, 2030, the adjustment, renewal,
34or extension of any part or all of the legal indebtedness of
35a city, whether evidenced by bonds, warrants, court-approved
-40-1settlements, court-approved compromises, or judgments, or the
2funding or refunding of the same, if such legal indebtedness
3relates to restitution, a refund, or a return ordered by a
4court of competent jurisdiction for franchise fees assessed
5and collected by the city before June 20, 2013 solely for the
6reduction of property tax levies that support the operation and
7maintenance of a municipal transit system or a regional transit
8district or to maintain transportation service levels of a
9municipal transit system or a regional transit district. This
10paragraph “j” is repealed July 1, 2030.
11 Sec. 95. EFFECTIVE DATE. This division of this Act takes
12effect July 1, 2024.
13DIVISION XII
14COUNTY AUDITOR VALUATION REPORTS
15 Sec. 96. Section 331.510, subsections 3 and 4, Code 2023,
16are amended to read as follows:
173. An annual report not later than January 1 to the
18department of management of the valuation by class of property
19for each taxing district in the county on forms provided by the
20department of management. The valuations reported shall be
21those valuations used for determining the levy rates necessary
22to fund the budgets of the taxing districts for the following
23fiscal year. Each annual report under this subsection for
24assessment years beginning on or after January 1, 2024,
25shall distinguish such values as revaluation or other type of
26addition to value, as defined and submitted in the assessor’s
27abstract transmitted to the department of revenue under section
28441.45.
294. An annual report not later than January 1 to the
30governing body of each taxing district in the county of the
31assessed valuations of taxable property in the taxing district
32as reported to the department of management. Each annual
33report under this subsection for assessment years beginning
34on or after January 1, 2024, shall distinguish such values as
35revaluation or other type of addition to value, as defined
-41-1and submitted in the assessor’s abstract transmitted to the
2department of revenue under section 441.45.
3DIVISION XIII
4local government budgets and taxpayer statements
5 Sec. 97. NEW SECTION. 24.2A Budget statements to owners
6and taxpayers.
71. For purposes of this section only:
8a. “Budget year” is the fiscal year beginning during the
9calendar year in which a budget is certified.
10b. “Current fiscal year” is the fiscal year ending during
11the calendar year in which a budget for the budget year is
12certified.
13c. “Effective property tax rate” means the property tax rate
14per one thousand dollars of assessed value and is equal to
15one thousand multiplied by the quotient of the current fiscal
16year’s actual property tax dollars certified for levy divided
17by the total assessed value used to calculate taxes for the
18budget year.
19d. “Political subdivision” means a school district, a
20county, or a city.
212. a. On or before February 27 of each year, each political
22subdivision shall file with the county auditor a report
23containing all necessary information for the county auditor to
24calculate amounts required to be included in the statements
25mailed under paragraph “b”.
26b. Not later than March 1, the county auditor shall compile
27all required information from all reports received and send to
28each property owner or taxpayer within the county by regular
29mail an individual statement containing all of the following
30for each of the political subdivisions comprising the owner’s
31or taxpayer’s taxing district:
32(1) The sum of the current fiscal year’s actual property
33taxes certified for levy for all of the political subdivision’s
34levies and the combined property tax rate per one thousand
35dollars for such tax amount for the current fiscal year.
-42- 1(2) The combined effective property tax rate for the
2political subdivision calculated using the sum of the current
3fiscal year’s actual property taxes certified for levy for all
4of the political subdivision’s levies under subparagraph (1).
5(3) The combined amount of the proposed property tax dollars
6to be certified for all of the political subdivision’s levies
7for the budget year and the proposed combined property tax rate
8per one thousand dollars for such levies.
9(4) If the proposed property tax dollars specified
10under subparagraph (3) exceeds the current fiscal year’s
11actual property tax dollars certified for levy specified in
12subparagraph (1), a detailed statement of the major reasons for
13the increase, including the specific purposes or programs for
14which the political subdivision is proposing an increase.
15(5) An example comparing the amount of property taxes on
16a residential property with an actual value of one hundred
17thousand dollars in the current fiscal year and such amount
18on the residential property using the proposed property
19tax dollars for the budget year, including the percentage
20difference in such amounts.
21(6) An example comparing the amount of property taxes
22on a commercial property with an actual value of one hundred
23thousand dollars in the current fiscal year and such amount on
24the commercial property using the proposed property tax dollars
25for the budget year, including the percentage difference in
26such amounts.
27(7) The political subdivision’s percentage of total
28property taxes certified for levy in the owner’s or taxpayer’s
29taxing district in the current fiscal year among all taxing
30authorities.
31(8) The date, time, and location of the political
32subdivision’s public hearing required under subsection 4.
33(9) Information on how to access on the political
34subdivision’s internet site the political subdivision’s
35statements under this section and other budget documents for
-43-1prior fiscal years.
2c. Proof of mailing shall be maintained by the county
3auditor.
43. The department of management shall prescribe the form for
5the report required under subsection 2, paragraph “a”, and the
6statements required to be mailed under subsection 2, paragraph
7“b”.
84. a. Each political subdivision shall set a time and place
9for a public hearing on the political subdivision’s proposed
10property tax amount for the budget year and the political
11subdivision’s information included in the statements under
12subsection 2. The date of the political subdivision’s public
13hearing shall not be on the same date of the public hearing
14under this section of another political subdivision with which
15the political subdivision shares territory. At the hearing,
16the governing body of the political subdivision shall receive
17oral or written testimony from any resident or property owner
18of the political subdivision. This public hearing shall be
19separate from any other meeting of the governing body of the
20political subdivision, including any other meeting or public
21hearing relating to the political subdivision’s budget, and
22other business of the political subdivision that is not related
23to the proposed property tax amounts and the information in the
24statements shall not be conducted at the public hearing. After
25all testimony has been received and considered, the governing
26body may decrease, but not increase, the proposed property tax
27amount to be included in the political subdivision’s budget.
28b. The political subdivision shall also publish notice
29of the hearing not less than ten nor more than twenty days
30prior to the hearing in a newspaper published in the political
31subdivision, if any, and if not, then in a newspaper of general
32circulation in the political subdivision.
33c. Notice of the hearing shall also be posted and clearly
34identified on the political subdivision’s internet site
35for public viewing beginning on the date of the newspaper
-44-1publication and shall be maintained on the political
2subdivision’s internet site with all such prior year notices
3and copies of the statements mailed under subsection 2.
4Additionally, if the political subdivision maintains a social
5media account on one or more social media applications, the
6public hearing notice or an electronic link to the public
7hearing notice shall be posted on each such account on the same
8day as the publication of the notice.
9 Sec. 98. Section 24.3, unnumbered paragraph 1, Code 2023,
10is amended to read as follows:
11A municipality shall not certify or levy in any fiscal year
12any tax on property subject to taxation unless and until the
13following estimates have been made, filed, and considered,
14and for school districts, the individual statements have been
15mailed and public hearings held, as provided in this chapter:
16 Sec. 99. Section 24.10, Code 2023, is amended to read as
17follows:
1824.10 Levies void.
19The verified proof of the publication of the notice
20under section 24.9 shall be filed and verified proof of the
21mailing of individual statements under section 24.2A shall be
22established in the office of the county auditor and preserved
23by the auditor. A levy shall not be valid unless and until
24that notice is such notices are published, mailed, and filed.
25However, failure of an owner or taxpayer to receive a statement
26under section 24.2A shall not invalidate a levy.
27 Sec. 100. Section 24.17, subsection 1, Code 2023, is amended
28to read as follows:
291. The local budgets of the various political subdivisions
30shall be certified by the chairperson of the certifying board
31or levying board, as the case may be, in duplicate to the
32county auditor not later than March 15 of each year on forms,
33and pursuant to instructions, prescribed by the department
34of management. However, if the political subdivision is a
35county, or a city, its budget shall be certified not later than
-45-1March 31 of each year, and if the political subdivision is or a
2school district, as defined in section 257.2, its budget shall
3be certified not later than April 15 of each year.
4 Sec. 101. Section 24.27, subsection 1, Code 2023, is amended
5to read as follows:
61. Not later than March 25, or April 10 for a county or a
7city, or April 25 if the municipality is a county, city, or
8 school district, a number of persons in any municipality equal
9to one-fourth of one percent of those voting for the office of
10governor, at the last general election in the municipality,
11but the number shall not be less than ten, and the number
12need not be more than one hundred persons, who are affected
13by any proposed budget, expenditure or tax levy, or by any
14item thereof, may appeal from any decision of the certifying
15board or the levying board by filing with the county auditor
16of the county in which the municipal corporation is located, a
17written protest setting forth their objections to the budget,
18expenditure or tax levy, or to one or more items thereof, and
19the grounds for their objections. If a budget is certified
20after March 15, or March 31 in the case of a county or a city,
21 or April 15 in the case of a county, city, or school district,
22all appeal time limits shall be extended to correspond to
23allowances for a timely filing.
24 Sec. 102. Section 24.48, subsection 4, Code 2023, is amended
25to read as follows:
264. The city finance committee shall have officially
27notified any city of its approval, modification or rejection
28of the city’s appeal of the decision of the director of the
29department of management regarding a city’s request for a
30suspension of the statutory property tax levy limitation prior
31to thirty-five days before March 31 April 15.
32 Sec. 103. Section 331.422, unnumbered paragraph 1, Code
332023, is amended to read as follows:
34Subject to this section and sections 331.423 through 331.426
35or as otherwise provided by state law, the board of each county
-46-1shall certify property taxes annually at its March April
2 session to be levied for county purposes as follows:
3 Sec. 104. Section 331.434, unnumbered paragraph 1, Code
42023, is amended to read as follows:
5Annually, the board of each county, subject to section
6331.403, subsection 4, sections 331.423 through 331.426,
7section 331.433A, the applicable portions of chapter 24, and
8other applicable state law, shall prepare and adopt a budget,
9certify taxes, and provide appropriations as follows:
10 Sec. 105. Section 331.434, subsection 3, Code 2023, is
11amended to read as follows:
123. Following, and not until, adoption of the resolution
13under section 331.433A, the requirements of section 24.2A are
14completed, the board shall set a time and place for a public
15hearing on the budget before the final certification date and
16shall publish notice of the hearing not less than ten nor more
17than twenty days prior to the hearing in the county newspapers
18selected under chapter 349. A summary of the proposed budget
19and a description of the procedure for protesting the county
20budget under section 331.436, in the form prescribed by the
21director of the department of management, shall be included
22in the notice. Proof of publication of the notice under this
23subsection 3 and a copy of the resolution adopted under section
24331.433A shall be filed with and preserved by the county
25 auditor. A levy is not valid unless and until the notice is
26published and the notice and resolution adopted under section
27331.433A are filed individual statements under section 24.2A
28are mailed. The department of management shall prescribe the
29form for the public hearing notice for use by counties.
30 Sec. 106. Section 331.434, subsection 5, paragraph a, Code
312023, is amended to read as follows:
32a. After the hearing, the board shall adopt by resolution
33a budget and certificate of taxes for the next fiscal year
34and shall direct the auditor to properly certify and file the
35budget and certificate of taxes as adopted. The board shall
-47-1not adopt a tax in excess of the estimate published or the
2applicable amounts specified in the resolution adopted under
3section 331.433A, except a tax which is approved by a vote of
4the people, and a greater tax than that adopted shall not be
5levied or collected. A county budget and certificate of taxes
6adopted for the following fiscal year becomes effective on the
7first day of that year.
8 Sec. 107. Section 331.434, subsection 7, Code 2023, is
9amended to read as follows:
107. Taxes levied by a county whose budget is certified after
11March 31 April 15 shall be limited to the prior year’s budget
12amount. However, this penalty may be waived by the director
13of the department of management if the county demonstrates
14that the March 31 deadline was missed because of circumstances
15beyond the control of the county.
16 Sec. 108. Section 331.435, subsection 2, Code 2023, is
17amended to read as follows:
182. The board shall prepare and adopt a budget amendment in
19the same manner as the original budget as provided in section
20331.434, but excluding the requirements for adoption of the
21resolution under section 331.433A mailing individual statements
22under section 24.2A, and the amendment is subject to protest as
23provided in section 331.436, except that the director of the
24department of management may by rule provide that amendments
25of certain types or up to certain amounts may be made without
26public hearing and without being subject to protest. A county
27budget for the ensuing fiscal year shall be amended by May 31
28to allow time for a protest hearing to be held and a decision
29rendered before June 30. An amendment of a budget after May
3031 which is properly appealed but without adequate time for
31hearing and decision before June 30 is void.
32 Sec. 109. Section 331.436, Code 2023, is amended to read as
33follows:
34331.436 Protest.
35Protests to the adopted budget must be made in accordance
-48-1with sections 24.27 through 24.32 as if the county were the
2municipality under those sections except that the protest must
3be filed no later than April 10 25 and the number of people
4necessary to file a protest under this section shall not be
5less than one hundred.
6 Sec. 110. Section 384.2, subsection 1, Code 2023, is amended
7to read as follows:
81. Except as otherwise provided for special charter cities,
9a city’s fiscal year shall be as provided in section 24.2,
10subsection 3. All city property taxes must be certified by
11a city to the county auditor on or before March 31 April
1215 of each year, unless otherwise provided by state law.
13However, municipal utilities, if not supported by taxation
14or the proceeds of outstanding indebtedness payable from
15taxes may, with the council’s consent, choose to operate on a
16fiscal year which is the calendar year. The receipt by the
17utility of payments from other governmental funds for public
18fire protection, street lighting, or other public use of the
19utility’s services shall not be deemed support by taxation.
20After notice and hearing in the same manner as required for the
21city’s regular budget under section 384.16, the utility budget
22must be approved by resolution of the council not later than
23twenty days prior to the beginning of the calendar year for
24which the budget applies.
25 Sec. 111. Section 384.16, unnumbered paragraph 1, Code
262023, is amended to read as follows:
27Annually, a city that has satisfied the requirements of
28section 384.15A and section 384.22, subsection 3, and the
29applicable portions of chapter 24, shall prepare and adopt a
30budget, and shall certify taxes as follows:
31 Sec. 112. Section 384.16, subsections 3, 5, and 6, Code
322023, are amended to read as follows:
333. Following, and not until, adoption of the resolution
34under section 384.15A, requirements of section 24.2A are
35completed, the council shall set a time and place for public
-49-1hearing on the budget before the final certification date and
2shall publish notice of the hearing not less than ten nor more
3than twenty days before the hearing in a newspaper published
4at least once weekly and having general circulation in the
5city. However, if the city has a population of two hundred
6or less, publication may be made by posting in three public
7places in the city. A summary of the proposed budget and a
8description of the procedure for protesting the city budget
9under section 384.19, in the form prescribed by the director of
10the department of management, shall be included in the notice.
11Proof of publication of the notice under this subsection 3 and
12a copy of the resolution adopted under section 384.15A must be
13filed with the county auditor. The department of management
14shall prescribe the form for the public hearing notice for use
15by cities.
165. After the hearing, the council shall adopt by resolution
17a budget for at least the next fiscal year, and the clerk
18shall certify the necessary tax levy for the next fiscal year
19to the county auditor and the county board of supervisors.
20The tax levy certified may be less than but not more than
21the amount estimated in the proposed budget submitted at
22the final hearing or the applicable amount specified in the
23resolution adopted under section 384.15A, unless an additional
24tax levy is approved at a city election. Two copies each of
25the detailed budget as adopted and of the tax certificate must
26be transmitted to the county auditor, who shall complete the
27certificates and transmit a copy of each to the department of
28management.
296. Taxes levied by a city whose budget is certified after
30March 31 April 15 shall be limited to the prior year’s budget
31amount. However, this penalty may be waived by the director of
32the department of management if the city demonstrates that the
33March 31 deadline was missed because of circumstances beyond
34the control of the city.
35 Sec. 113. Section 384.17, Code 2023, is amended to read as
-50-1follows:
2384.17 Levy by county.
3At the time required by law, the county board of supervisors
4shall levy the taxes necessary for each city fund for the
5following fiscal year. The levy must be as shown in the
6adopted city budget and as certified by the clerk, subject to
7any changes made after a protest hearing, and any additional
8tax rates approved at a city election. A city levy is not valid
9until proof of publication or posting of notice of a budget
10hearing under section 384.16, subsection 3, and the notice and
11resolution adopted under section 384.15A are is filed with
12the county auditor and individual statements are mailed under
13section 24.2A.
14 Sec. 114. Section 384.18, subsection 2, Code 2023, is
15amended to read as follows:
162. A budget amendment must be prepared and adopted in the
17same manner as the original budget, as provided in section
18384.16, excluding the requirement for the mailing of individual
19statements under section 24.2A, and is subject to protest as
20provided in section 384.19, except that the committee may by
21rule provide that amendments of certain types or up to certain
22amounts may be made without public hearing and without being
23subject to protest. A city budget shall be amended by May
2431 of the current fiscal year to allow time for a protest
25hearing to be held and a decision rendered before June 30. The
26amendment of a budget after May 31, which is properly appealed
27but without adequate time for hearing and decision before June
2830 is void.
29 Sec. 115. REPEAL. Sections 331.433A and 384.15A, Code 2023,
30are repealed.
31 Sec. 116. IMPLEMENTATION. Section 25B.2, subsection 3,
32shall not apply to this division of this Act.
33 Sec. 117. APPLICABILITY. This division of this Act applies
34to school district, county, and city budgets for fiscal years
35beginning on or after July 1, 2024.
-51-1DIVISION XIV
2DRIVER’S LICENSES AND NONOPERATOR’S IDENTIFICATION CARDS
3 Sec. 118. Section 321M.9, subsection 1, paragraph a, Code
42023, is amended by adding the following new subparagraph:
5 NEW SUBPARAGRAPH. (4) The ten-dollar convenience fee
6collected pursuant to subsection 1A.
7 Sec. 119. Section 321M.9, Code 2023, is amended by adding
8the following new subsection:
9 NEW SUBSECTION. 1A. Convenience fee. A county authorized
10to issue driver’s licenses under this chapter may charge, in
11addition to any other fee imposed by law, a convenience fee for
12the issuance or renewal of a driver’s license or nonoperator’s
13identification card to a person who is not a resident of the
14county, unless that person pays property tax to the county
15and provides proof of payment such as a receipt as provided
16in section 445.5, subsection 6, or another form of proof as
17determined by the county. The convenience fee shall be ten
18dollars.
19DIVISION XV
20writing fees
21 Sec. 120. Section 321G.27, subsection 1, paragraphs a, b,
22and c, Code 2023, are amended by striking the paragraphs.
23 Sec. 121. Section 321G.27, subsection 1, Code 2023, is
24amended by adding the following new paragraph:
25 NEW PARAGRAPH. 0d. The county recorder shall collect
26a writing fee of two dollars for each privilege under this
27chapter.
28 Sec. 122. Section 321G.29, subsection 3, Code 2023, is
29amended to read as follows:
303. An owner of a snowmobile shall apply to the county
31recorder for issuance of a certificate of title within thirty
32days after acquisition. The application shall be on forms
33the department prescribes and accompanied by the required fee
34specified in section 321G.30 and the writing fee specified in
35section 321G.27. The application shall include a certification
-52-1signed in writing containing substantially the representation
2that statements made are true and correct to the best of the
3applicant’s knowledge, information, and belief, under penalty
4of perjury. The application shall contain the date of sale
5and gross price of the snowmobile or the fair market value if
6no sale immediately preceded the transfer and any additional
7information the department requires. If the application is
8made for a snowmobile last previously registered or titled in
9another state or foreign country, the application shall contain
10this information and any other information the department
11requires.
12 Sec. 123. Section 321G.31, Code 2023, is amended to read as
13follows:
14321G.31 Transfer or repossession by operation of law.
151. If ownership of a snowmobile is transferred by
16operation of law, such as by inheritance, order in bankruptcy,
17insolvency, replevin, or execution sale, the transferee, within
18thirty days after acquiring the right to possession of the
19snowmobile, shall mail or deliver to the county recorder of
20the transferee’s county of residence satisfactory proof of
21ownership as the county recorder requires, together with an
22application for a new certificate of title, and the required
23fee, plus the writing fee specified in section 321G.27.
24However, if the transferee is the surviving spouse of the
25deceased owner, the county recorder shall waive the required
26fee fees.
272. If a lienholder repossesses a snowmobile by operation of
28law and holds it for resale, the lienholder shall secure a new
29certificate of title and shall pay the required fee, plus the
30writing fee specified in section 321G.27.
31 Sec. 124. Section 321G.32, subsection 1, Code 2023, is
32amended by adding the following new paragraph:
33 NEW PARAGRAPH. c. The application shall be accompanied by
34the writing fee specified in section 321G.27.
35 Sec. 125. Section 321I.29, subsection 1, paragraphs a, b,
-53-1and c, Code 2023, are amended by striking the paragraphs.
2 Sec. 126. Section 321I.29, subsection 1, Code 2023, is
3amended by adding the following new paragraph:
4 NEW PARAGRAPH. 0d. The county recorder shall collect
5a writing fee of two dollars for each privilege under this
6chapter.
7 Sec. 127. Section 321I.31, subsection 3, Code 2023, is
8amended to read as follows:
93. An owner of an all-terrain vehicle shall apply to
10the county recorder for issuance of a certificate of title
11within thirty days after acquisition. The application shall
12be on forms the department prescribes and accompanied by the
13required fee specified in section 321I.32 and the writing fee
14specified in section 321I.29. The application shall include a
15certification signed in writing containing substantially the
16representation that statements made are true and correct to the
17best of the applicant’s knowledge, information, and belief,
18under penalty of perjury. The application shall contain the
19date of sale and gross price of the all-terrain vehicle or the
20fair market value if no sale immediately preceded the transfer
21and any additional information the department requires. If the
22application is made for an all-terrain vehicle last previously
23registered or titled in another state or foreign country,
24the application shall contain this information and any other
25information the department requires.
26 Sec. 128. Section 321I.33, Code 2023, is amended to read as
27follows:
28321I.33 Transfer or repossession by operation of law.
291. If ownership of an all-terrain vehicle is transferred by
30operation of law, such as by inheritance, order in bankruptcy,
31insolvency, replevin, or execution sale, the transferee,
32within thirty days after acquiring the right to possession of
33the all-terrain vehicle, shall mail or deliver to the county
34recorder of the transferee’s county of residence satisfactory
35proof of ownership as the county recorder requires, together
-54-1with an application for a new certificate of title, and
2the required fee, plus the writing fee specified in section
3321I.29. However, if the transferee is the surviving spouse
4of the deceased owner, the county recorder shall waive the
5required fee fees.
62. If a lienholder repossesses an all-terrain vehicle by
7operation of law and holds it for resale, the lienholder shall
8secure a new certificate of title and shall pay the required
9fee, plus the writing fee specified in section 321I.29.
10 Sec. 129. Section 321I.34, subsection 1, Code 2023, is
11amended by adding the following new paragraph:
12 NEW PARAGRAPH. c. The application shall be accompanied by
13the writing fee specified in section 321I.29.
14 Sec. 130. Section 462A.53, Code 2023, is amended to read as
15follows:
16462A.53 Amount of writing fees.
17A writing fee of one dollar and twenty-five cents two dollars
18 for each privilege shall be collected by the county recorder.
19 Sec. 131. Section 462A.77, subsection 4, Code 2023, is
20amended to read as follows:
214. Every owner of a vessel subject to titling under this
22chapter shall apply to the county recorder for issuance of a
23certificate of title for the vessel within thirty days after
24acquisition. The application shall be on forms the department
25prescribes, and accompanied by the required fee specified
26in section 462A.78 and the writing fee specified in section
27462A.53. The application shall be signed and shall include a
28certification signed in writing containing substantially the
29representation that statements made are true and correct to the
30best of the applicant’s knowledge, information, and belief,
31under penalty of perjury. The application shall contain
32the date of sale and gross price of the vessel or the fair
33market value if no sale immediately preceded the transfer, and
34any additional information the department requires. If the
35application is made for a vessel last previously registered or
-55-1titled in another state or foreign country, it shall contain
2this information and any other information the department
3requires.
4 Sec. 132. Section 462A.82, subsections 1 and 2, Code 2023,
5are amended to read as follows:
61. If ownership of a vessel is transferred by operation of
7law, such as by inheritance, order in bankruptcy, insolvency,
8replevin, execution sale, or in compliance with section 578A.7,
9the transferee, within thirty days after acquiring the right
10to possession of the vessel by operation of law, shall mail or
11deliver to the county recorder satisfactory proof of ownership
12as the county recorder requires, together with an application
13for a new certificate of title, and the required fee, plus the
14writing fee specified in section 462A.53. However, if the
15transferee is the surviving spouse of the deceased owner, the
16county recorder shall waive the required fee fees. A title tax
17is not required on these transactions.
182. If a lienholder repossesses a vessel by operation of
19law and holds it for resale, the lienholder shall secure a new
20certificate of title and shall pay the required fee, plus the
21writing fee specified in section 462A.53.
22 Sec. 133. Section 462A.84, subsection 1, Code 2023, is
23amended by adding the following new paragraph:
24 NEW PARAGRAPH. c. The application shall be accompanied by
25the writing fee specified in section 462A.53.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to local government property taxes,
30financial authority, and budgets, requires certain information
31related to property taxation to be provided to property
32owners and taxpayers, modifies provisions relating to fees
33for driver’s licenses and nonoperator’s identification cards,
34modifying provisions relating to certain writing fees, and
35modifies certain transit funding, property tax credits and
-56-1exemptions, and appropriations.
2DIVISION I — COUNTY PROPERTY TAXES AND BUDGETS. Code
3section 331.301(10) governs a county’s authority to enter into
4leases and lease-purchase contracts and, in part, subjects
5leases and lease-purchase agreements for real property to
6procedures for approval at an election following a petition
7if the principal amount of the contract exceeds specified
8thresholds categorized by county population. The bill
9increases the thresholds for each category by 30 percent.
10The bill similarly increases a threshold relating to when a
11lease or lease-purchase contract is not subject to approval
12procedures similar to essential county purposes bonds.
13Code section 331.402(3) governs a county’s authority
14to enter into loan agreements and, in part, subjects loan
15agreements for real property to procedures for approval at
16an election following a petition if the principal amount of
17the contract exceeds specified thresholds categorized by
18county population. The bill increases the thresholds for each
19category by 30 percent.
20Code section 331.403 requires each county to prepare and
21file an annual financial report. The bill requires that
22beginning with the annual financial report filed by December
231, 2024, each such report shall include a list of bonds,
24notes, or other obligations issued by the county during the
25preceding fiscal year payable from any source, including the
26amount of the issuance, the project or purpose of the issuance,
27whether the issuance was approved at election, eligible to
28be subject to a petition for an election, or was exempt from
29approval at election as the result of statutory exclusions
30based on population of the county or amount of the issuance,
31and identification of issuances from the fiscal year or prior
32fiscal years related to the same project or purpose.
33Code section 331.423 establishes a levy rate limitation
34for the general county services levy of $3.50 per $1,000
35of assessed value of taxable property in the county and a
-57-1limitation for the rural county services levy of $3.95 per
2$1,000 of assessed value of taxable property in the county.
3The bill modifies the general county services levy rate
4limitation for the fiscal year beginning July 1, 2024, to
5be a levy rate not to exceed the sum of $3.50 plus the levy
6rate for general county services under Code section 331.426,
7Code 2023, for the fiscal year beginning July 1, 2023. The
8bill then provides that for each fiscal year beginning on or
9after July 1, 2025, the general county services levy rate
10limitation is the greater of $3.50 per $1,000 of taxable value
11and the limitation determined for the preceding fiscal year,
12as adjusted under the bill. If the total assessed value used
13to calculate taxes for general county services for the budget
14year exceeds 103.25 percent of the total assessed value used
15to calculate taxes for the current fiscal year, the levy rate
16amount per $1,000 for the preceding fiscal year, if applicable,
17shall be reduced to a rate that is equal to 1,000 multiplied
18by the quotient of the current fiscal year’s actual property
19tax dollars certified for levy divided by 103.25 percent of the
20total assessed value used to calculate taxes for the current
21fiscal year.
22In addition to that levy limitation, for fiscal years
23beginning on or after July 1, 2025, if the county’s actual
24levy rate for general county services for the current fiscal
25year is $3.50 or less per $1,000 of assessed value and the
26total assessed value used to calculate taxes for the budget
27year exceeds 102.5 percent of the total assessed value used to
28calculate taxes for the current fiscal year, the levy rate for
29general county services for the budget year shall not exceed
30the rate per $1,000 of assessed value that is equal to 1,000
31multiplied by the quotient of the current fiscal year’s actual
32property tax dollars certified for levy for general county
33services divided by 102.5 percent of the total assessed value
34used to calculate taxes for the current fiscal year.
35The bill similarly modifies the maximum levy rate for rural
-58-1county services for the fiscal year beginning July 1, 2024, to
2be a levy rate equal to the sum of $3.95 plus the rate levied
3for rural county services under section 331.426, Code 2023, for
4the fiscal year beginning July 1, 2023. For each fiscal year
5beginning on or after July 1, 2025, the maximum levy rate is
6the greater of $3.95 and the levy rate for the preceding fiscal
7year as adjusted under the bill. The bill provides that if the
8total assessed value used to calculate taxes for rural county
9services for the budget year exceeds 103.25 percent of the
10total assessed value used to calculate taxes for the current
11fiscal year, the levy rate, as previously adjusted under the
12bill, if applicable, shall be reduced to a rate that is equal
13to 1,000 multiplied by the quotient of the current fiscal
14year’s actual property tax dollars certified for levy for rural
15county services divided by 103.25 percent of the total assessed
16value used to calculate taxes for the current fiscal year.
17In addition to that levy limitation, for fiscal years
18beginning on or after July 1, 2025, if the county’s actual
19levy rate for rural county services for the current fiscal
20year is $3.95 or less per $1,000 of assessed value and the
21total assessed value used to calculate taxes for the budget
22year exceeds 102.5 percent of the total assessed value used
23to calculate taxes for the current fiscal year, the levy
24rate for rural county services for the budget year shall not
25exceed the rate per $1,000 of assessed value that is equal to
261,000 multiplied by the quotient of the current fiscal year’s
27actual property tax dollars certified for levy for rural county
28services divided by 102.5 percent of the total assessed value
29used to calculate taxes for the current fiscal year.
30Code section 331.426 authorizes a county experiencing
31unusual circumstances, including increases in population,
32natural disaster or emergency, problems relating to major
33new functions required by state law, staffing problems, need
34for additional moneys to continue certain programs, need for
35new county programs that provide a substantial benefit to
-59-1residents, and reduced or unusually low growth rate in the
2county, to levy additional property taxes for general county
3services or rural county services. If the county imposed such
4levies in the fiscal year beginning July 1, 2023, the bill
5increases the county’s applicable general services levy rate
6authority by such levy rate amounts as previously described.
7The bill repeals Code section 331.426.
8Code section 331.425 provides that a board of supervisors
9may certify an addition to a levy in excess of the amounts
10otherwise permitted under Code sections 331.423, 331.424, and
11331.426 if the proposition to certify an addition to a levy
12has been submitted at a special levy election and received
13a favorable majority of the votes cast on the proposition.
14The bill removes reference to Code section 331.426, which is
15repealed in the bill, and provides that if the addition to
16a levy approved under Code section 331.425 is due to unusual
17circumstances resulting from the following, the duration of
18such approval at election shall not exceed the following period
19of years: (1) unusual problems relating to major new functions
20required by state law, three years; and (2) unusual need for a
21new program which will provide substantial benefit to county
22residents, if the county establishes the need and the amount
23of necessary increased cost, one year. In addition, for
24elections to approve additions to a levy for such reasons or
25as the result of a natural disaster, the ballot shall include
26additional information relating to the major reasons for the
27addition.
28Code section 331.441(2)(b) defines “essential county
29purpose” to include public buildings, including the site
30or grounds of, and the erection, equipment, remodeling,
31or reconstruction of, and additions or extensions to the
32buildings, and including the provision and maintenance of
33juvenile detention or shelter care facilities, when the
34cost does not exceed specified thresholds based on county
35population. The bill increases each of the threshold amounts
-60-1by 30 percent.
2The bill strikes “[a]ny other purpose which is necessary for
3the operation of the county or the health and welfare of its
4citizens” from the definition of “general county purpose” under
5Code section 331.441(2)(c).
6Code section 331.442 governs county procedures for the
7issuance of general county purpose bonds. In lieu of calling
8an election, the board of supervisors may institute proceedings
9for the issuance of bonds for a general county purpose by
10publishing a notice of the proposal to issue the bonds,
11including a statement of the amount and purpose of the bonds,
12and the right to petition for an election if the amount of the
13bonds is less than specified threshold amounts based on county
14population. The bill increases each of the threshold amounts
15by 30 percent.
16The bill also requires a notice of proposal to issue general
17obligation bonds by a county to include an estimate of the
18annual increase in property taxes as the result of the bond
19issuance on a residential property with an actual value of
20$100,000.
21Division I of the bill takes effect July 1, 2024, and applies
22to county taxes and budgets for fiscal years beginning on or
23after July 1, 2024.
24DIVISION II — CITY PROPERTY TAXES. Code section 384.1
25establishes the city general fund levy and limits the levy rate
26on property that is not used and assessed for agricultural or
27horticultural purposes at $8.10 per $1,000 of taxable value.
28This bill modifies the levy rate limit for the fiscal year
29beginning July 1, 2024, to not exceed the sum of $8.10 plus the
30following for the applicable city: (1) the levy rate under
31Code section 384.8, Code 2023, for the fiscal year beginning
32July 1, 2023; (2) the total levy rate levied by or on behalf
33of the city under Code section 384.12, subsections 1, 2, 3, 4,
345, 6, 7, 8, 9, 11, 12, 13, 15, 16, and 20, Code 2023, for the
35fiscal year beginning July 1, 2023; and (3) the levy rate of
-61-1the city under Code section 24.48, Code 2023, for the fiscal
2year beginning July 1, 2023.
3For each fiscal year beginning on or after July 1, 2025, a
4city’s tax levy rate for the general fund, except for levies
5authorized in Code section 384.12, shall not exceed in any tax
6year the greater of $8.10 per $1,000 and the amount determined
7under the bill for the prior year, as adjusted under the bill.
8The bill provides that if the total assessed value used to
9calculate taxes for the budget year exceeds 103.25 percent
10of the total assessed value used to calculate taxes for the
11current fiscal year, the levy rate, as previously adjusted
12under the bill, if applicable, shall be reduced to a rate that
13is equal to 1,000 multiplied by the quotient of the current
14fiscal year’s actual property tax dollars certified for levy
15under Code section 384.1 divided by 103.25 percent of the total
16assessed value used to calculate taxes for the current fiscal
17year.
18In addition to that levy limitation, for fiscal years
19beginning on or after July 1, 2025, if the city’s actual levy
20rate for the general fund for the current fiscal year is $8.10
21or less per $1,000 of assessed value and the total assessed
22value used to calculate taxes for the budget year exceeds 102.5
23percent of the total assessed value used to calculate taxes
24for the current fiscal year, the levy rate for the general
25fund for the budget year shall not exceed the rate per $1,000
26of assessed value that is equal to 1,000 multiplied by the
27quotient of the current fiscal year’s actual property tax
28dollars certified for levy under Code section 384.1 divided by
29102.5 percent of the total assessed value used to calculate
30taxes for the current fiscal year.
31Code section 384.12 authorizes a city to levy various
32other additional taxes that under current law are not subject
33to the $8.10 levy limit. The bill strikes several of the
34purposes for which a city may levy an additional tax and if
35the county imposed such levies in the fiscal year beginning
-62-1July 1, 2023, increases the county’s general services levy rate
2authority under Code section 384.1 by such levy rate amounts
3as previously described.
4Code section 24.48, in part, authorizes a city with a reduced
5property tax base or unusually low growth rate or experiencing
6unusual circumstances, including increases in population,
7natural disaster or emergency, problems relating to major new
8functions required by state law, staffing problems, need for
9additional moneys to continue certain programs, and need for
10new programs that provide a substantial benefit to residents,
11to appeal to the state appeal board to suspend levy limitations
12and levy additional property taxes. The bill provides that for
13budgets for fiscal years beginning on or after July 1, 2024,
14suspension of the statutory property tax levy limitations for a
15city shall only be approved for a natural disaster, problems
16relating to major new functions required by state law, or a
17need for new programs that provide a substantial benefit to
18residents.
19The bill repeals Code section 384.8, which authorizes a
20$0.27 city emergency fund levy and makes corresponding changes
21to other provisions of law relating to the modification of city
22supplemental property tax levies and the city’s general fund
23levy under Code section 384.1.
24Code section 384.22 requires each city to prepare and
25publish an annual financial report. The bill requires that
26beginning with the annual financial report published by
27December 1, 2024, each such report shall include a list of
28bonds, notes, or other obligations issued by the city during
29the preceding fiscal year payable from any source, including
30the amount of the issuance, the project or purpose of the
31issuance, whether the issuance was approved at election,
32eligible to be subject to a petition for an election, or was
33exempt from approval at election as the result of statutory
34exclusions based on population of the city or amount of the
35issuance, and identification of issuances from the fiscal year
-63-1or prior fiscal years related to the same project or purpose.
2The bill strikes “[a]ny other purpose which is necessary
3for the operation of the city or the health and welfare of its
4citizens” from the definition of “general corporate purpose”
5under Code section 384.24(4).
6Code section 384.24A(4) governs a city’s authority to enter
7into loan agreements and, in part, subjects loan agreements
8for real property to procedures for approval at an election
9following a petition if the principal amount of the contract
10exceeds specified thresholds categorized by city population.
11The bill increases the contract amount thresholds for each
12category by 30 percent.
13Code section 384.26 governs city procedures for the issuance
14of city general corporate purpose bonds. In lieu of calling an
15election, the city council may institute proceedings for the
16issuance of bonds for a general corporate purpose by publishing
17a notice of the proposal to issue the bonds, including a
18statement of the amount and purpose of the bonds, and the right
19to petition for an election if the amount of the bonds is less
20than specified threshold amounts based on city population. The
21bill increases each of the threshold amounts by 30 percent.
22The bill also requires a notice of proposal to issue general
23obligation bonds by a city to, among other information related
24to the issuance, include an estimate of the annual increase
25in property taxes as the result of the bond issuance on a
26residential property with an actual value of $100,000.
27Division II takes effect July 1, 2024, and applies to taxes
28and budgets for fiscal years beginning on or after July 1,
292024.
30DIVISION III — PUBLIC EDUCATION AND RECREATIONAL TAX LEVY.
31 Code chapter 300 authorizes the imposition of a voter-approved
32property tax levy for the establishment and maintenance
33of public recreation places and playgrounds, and necessary
34accommodations for the recreation places and playgrounds, in
35the public school buildings and grounds of the district. Code
-64-1chapter 300 also authorizes each school board to cooperate
2with public or private agencies having custody and management
3of public parks or buildings or grounds open to the public
4for the supervision and instruction necessary to carry on
5public educational and recreational activities in the parks,
6buildings, and grounds located within the district. Such
7activities may be supported by imposition of a voter-approved
8property tax levy not to exceed 13.5 cents per $1,000 of
9assessed value. The property tax levy under Code chapter 300
10also provides financial support to community education programs
11established under Code chapter 276, which provide educational,
12recreational, cultural, and other community services and
13programs.
14The bill repeals Code chapter 300 and makes corresponding
15amendments to other provisions of law effective July 1, 2027,
16and applies to fiscal years beginning on or after July 1,
172027. The bill provides that financial support for a community
18education program under Code chapter 276 may be provided from
19funds received by the school district under Code chapter 423F.
20 By operation of the definition of “school infrastructure” under
21Code section 423F.3(6)(a)(1), moneys received by a school
22district from the secure an advanced vision for education fund
23may continue to be utilized for activities previously provided
24for under Code chapter 300 and Code chapter 276.
25The bill prohibits a levy under Code chapter 300 from being
26approved at election on or after the effective date of the
27provision in the bill, which is effective upon enactment, and
28limits the rate at which previously approved levies can be
29imposed for the fiscal year beginning July 1, 2026.
30The bill also provides that moneys available in the public
31education and recreation levy fund at the conclusion of the
32fiscal year beginning July 1, 2026, and ending June 30, 2026,
33shall be expended by the school corporation for the purposes
34authorized under Code chapter 300, Code 2023.
35DIVISION IV — BRUCELLOSIS AND TUBERCULOSIS ERADICATION
-65-1FUND — LEVY. Code section 165.18 authorizes the secretary of
2agriculture to direct the board of supervisors of each county
3to levy an amount sufficient to pay the expenses estimated to
4be incurred from the brucellosis and tuberculosis eradication
5fund for the following fiscal year, subject to a maximum levy
6of 33.75 cents per $1,000. The bill strikes the authority to
7levy such a tax beginning with property taxes due and payable
8in fiscal years beginning July 1, 2024.
9DIVISION V — COUNTY SEATS. The bill specifies that pursuant
10to the general grant of home rule power conferred by the
11Constitution of the State of Iowa and if not inconsistent with
12the laws of the general assembly, a county that has designated
13more than one city to be a county seat may consolidate or
14reduce the number of county seats by ordinance. The bill also
15repeals 1848 Iowa Acts, First Extraordinary Session, chapter
1652, which in part required Lee County to maintain a district
17court at Fort Madison and the city of Keokuk, required the
18clerk of district court to keep an office at Fort Madison and
19the city of Keokuk, and required the sheriff of Lee County to
20keep an office at Fort Madison and the city of Keokuk.
21Division V of the bill takes effect upon enactment.
22DIVISION VI — COUNTY SHERIFF FEE REPORT. The bill strikes
23the provision of Code section 331.655 that requires an annual
24report from the Iowa state sheriffs’ and deputies’ association
25that details, based on a sampling of specified county data, the
26total annual county budget allocation to the sheriff to fulfill
27those duties for which the sheriff is required to collect
28certain fees, the average cost per service, summons, execution,
29or other activity by activity category, the revenue generated
30by collection of those fees by category, and the associated
31impact on property taxes for each county to fulfill those
32duties for which the sheriff is required to collect such fees.
33DIVISION VII — HOMESTEAD PROPERTY TAX CREDIT. Code chapter
34425 establishes a homestead property tax credit in an amount
35equal to the property tax levy on the first $4,850 of actual
-66-1value. The homestead credit is paid for from the homestead
2credit fund under Code section 425.1 for which there is an
3annual appropriation for an amount sufficient to implement the
4credit.
5The bill establishes a homestead property tax exemption
6for owners 65 or older that is in addition to the homestead
7credit. For the assessment year beginning January 1, 2024, the
8exemption amount is $3,250. For the assessment year beginning
9January 1, 2025, and each succeeding assessment year, the
10exemption amount is $6,500.
11Code section 25B.7 provides that if a state appropriation
12made to fund a credit or exemption is not sufficient to fully
13fund the credit or exemption, the political subdivision shall
14be required to extend to the taxpayer only that portion of the
15credit or exemption estimated by the department of revenue to
16be funded by the state appropriation. The bill provides that
17the general requirement of Code section 25B.7 for property tax
18credits and exemptions does not apply to the homestead property
19tax exemption established in the bill.
20The bill makes corresponding changes to various other
21provisions of the Code relating to and referencing the
22homestead property tax credit.
23The bill provides that homestead credit claims approved
24prior to and valid on the effective date of the division shall
25result in a homestead tax exemption under Code chapter 425,
26subchapter I, as enacted in the division, without further
27filing by the claimant if the assessor has the information to
28verify eligibility for the exemption.
29Division VII applies to assessment years beginning on or
30after January 1, 2024.
31DIVISION VIII — ELDERLY PROPERTY TAX CREDIT. The
32bill amends Code section 423.23 to modify part of the
33calculation for the elderly property tax credit to account
34for the homestead credit for the property under Code section
35425.1. The division takes effect upon enactment and applies
-67-1retroactively to claims for the credit filed on or after
2January 1, 2022.
3DIVISION IX — MILITARY SERVICE PROPERTY TAX EXEMPTION AND
4CREDIT. Division VII relates to the military service property
5tax exemption and credit. Under current law, veterans of World
6War I are entitled to a property tax exemption of $2,778 in
7taxable value and honorably discharged veterans who served
8during other specific time periods are entitled to a property
9tax exemption of $1,852 in taxable value. The bill increases
10the exemption amount for all eligible veterans to $4,000 for
11assessment years beginning on or after January 1, 2024.
12Under current law, the state provides funding to local
13governments for the military service property tax exemption and
14credit up to $6.92 per $1,000 of assessed value of the exempt
15property. The bill eliminates funding for the credit starting
16with the fiscal year beginning July 1, 2025.
17Code section 25B.7 provides that if a state appropriation
18made to fund a credit or exemption is not sufficient to fully
19fund the credit or exemption, the political subdivision shall
20be required to extend to the taxpayer only that portion of the
21credit or exemption estimated by the department of revenue to
22be funded by the state appropriation. The requirement for
23fully funding and the consequences of not fully funding under
24Code section 25B.7 applies to the military service property
25tax credit and exemption to the extent of $6.92 per $1,000
26of assessed value of the exempt property. The bill strikes
27the portion of Code section 25B.7 that makes the requirement
28for fully funding and the consequences of not fully funding
29applicable to the military service property tax credit and
30exemption and provides that the general requirement of Code
31section 25B.7 for property tax credits and exemptions does not
32apply to the military property tax exemption established in the
33bill.
34The division applies to assessment years beginning on or
35after January 1, 2024.
-68- 1DIVISION X — PROPERTY TAX BENEFITS AND INCENTIVES. The bill
2amends Code chapter 404 (urban revitalization areas) to provide
3that for revitalization areas established on or after the
4effective date of the division and for first-year property tax
5exemption applications for property located in a revitalization
6area in existence on the effective date of the division filed
7on or after the effective date of the division, commercial
8property shall not receive a tax exemption under Code chapter
9404 unless the city or county, as applicable, and the owner
10of the qualified real estate enter into a written assessment
11agreement specifying a minimum actual value until a specified
12termination date for the duration of the exemption period.
13The bill also establishes limitations on exemptions for
14residential property within revitalization areas. For
15revitalization areas established on or after the effective date
16of the division and for first-year exemption applications for
17property located in a revitalization area in existence on the
18effective date of the division filed on or after the effective
19date of the division, an exemption under Code chapter 404
20for property that is residential property shall not apply to
21property tax levies imposed by a school district.
22Division X of the bill takes effect July 1, 2024.
23DIVISION XI — TRANSIT FUNDING. Cities may grant various
24types of franchises for specified services under Code section
25362.4 and may generally impose a franchise fee based upon
26a percentage of gross revenues generated from sales of the
27franchisee within the city not to exceed 5 percent. An
28exception allowing for a franchise fee up to 7.5 percent exists
29in specified circumstances for a period of fiscal years ending
30July 1, 2030, if approved at election. The bill strikes
31the provisions providing for that exception and establishes
32conditions under which a city with a population that exceeds
33200,000 may impose a franchise fee of up to 7.5 percent for
34fiscal years beginning on or after July 1, 2024. The bill
35requires that franchise fee amounts collected during such
-69-1fiscal years in excess of 5 percent of gross revenues generated
2from sales shall be used solely for the reduction of property
3tax levies used to support the operation and maintenance of a
4municipal transit system or a regional transit district or to
5maintain transportation service levels of a municipal transit
6system or a regional transit district.
7The division of the bill takes effect July 1, 2024.
8DIVISION XII — COUNTY AUDITOR VALUATION REPORTS. Code
9section 331.510, in part, requires the county auditor to
10make an annual report to the department of management of the
11valuation by class of property for each taxing district in the
12county, which shall be used for determining the levy rates
13necessary to fund the budgets of the taxing districts for the
14following fiscal year. In addition, the county auditor is
15required to make an annual report to the governing body of
16each taxing district in the county of the assessed valuations
17of taxable property in the taxing district as reported to the
18department of management.
19The bill requires both such annual reports for assessment
20years beginning on or after January 1, 2024, to distinguish
21such values as revaluation or other type of addition to value,
22as defined and submitted in the assessor’s abstract transmitted
23to the department of revenue under Code section 441.45.
24DIVISION XIII — LOCAL GOVERNMENT BUDGETS AND TAXPAYER
25STATEMENTS. The division relates to the approval of city,
26county, and school district budgets.
27Current law establishes budget certification deadlines
28for various political subdivisions, including March 31 for
29counties and cities, April 15 for school districts, and March
3015 for townships and other political subdivisions subject to
31the budget approval procedures of Code chapter 24. The bill
32modifies the budget certification deadline for counties and
33cities to be April 15.
34The bill enacts a requirement for certain political
35subdivisions (school districts, cities, and counties) to take
-70-1additional steps in preparing their annual budgets. Under
2the bill, on or before February 27 of each year, each such
3political subdivision is required to file with the county
4auditor a report containing all necessary information for the
5county auditor to calculate certain amounts required to be
6included in individual statements mailed by the county auditor
7to each property owner or taxpayer within the county not later
8than March 1. Each individual statement must contain all of
9the following for each of the political subdivisions comprising
10the owner’s or taxpayer’s taxing district: (1) the sum of
11the current fiscal year’s actual property taxes certified
12for levy for all of the political subdivision’s levies and
13the combined property tax rate for such tax amount for the
14current fiscal year; (2) the combined effective property tax
15rate for the political subdivision for all of the political
16subdivision’s levies; (3) the combined amount of the proposed
17property tax dollars to be certified for all of the political
18subdivision’s levies and the proposed combined property tax
19rate for such levies; (4) if the proposed combined property
20tax dollars exceeds the current fiscal year’s actual combined
21property tax dollars certified for levy, a detailed statement
22of the major reasons for the increase, including the specific
23purposes or programs for which the political subdivision is
24proposing an increase; (5) an example comparing the amount of
25property taxes on a residential property with an actual value
26of $100,000 in the current fiscal year and such amount on the
27residential property using the proposed property tax dollars
28for the budget year; (6) an example comparing the amount of
29property taxes on a commercial property with an actual value
30of $100,000 in the current fiscal year and such amount on the
31commercial property using the proposed property tax dollars for
32the budget year; (7) the political subdivision’s percentage
33of total property taxes certified for levy in the owner’s or
34taxpayer’s taxing district in the current fiscal year among all
35taxing authorities; (8) the date, time, and location of the
-71-1public hearing required under the bill; and (9) information on
2how to access on the political subdivision’s internet site the
3political subdivision’s statements under the new Code section
4and other budget documents for prior fiscal years.
5Each political subdivision is also required to conduct
6a public hearing on its proposed property tax amount for
7the budget year and the political subdivision’s information
8included in the individual statements. The date of the
9political subdivision’s public hearing shall not be on the
10same date of the public hearing under the bill of another
11political subdivision with which the political subdivision
12shares territory. At the hearing, the governing body of
13the political subdivision is required to receive oral or
14written testimony from any resident or property owner of the
15political subdivision. This public hearing must be separate
16from any other meeting of the governing body of the political
17subdivision, including any other meeting or public hearing
18relating to the political subdivision’s budget, and other
19business of the political subdivision that is not related to
20the proposed property tax amounts and the information in the
21statements shall not be conducted at the public hearing. After
22all testimony has been received and considered, the governing
23body may decrease, but not increase, the proposed property tax
24amount to be included in the political subdivision’s budget.
25Notice of the public hearing must also be published in a
26newspaper, posted on the political subdivision’s internet site,
27and, if the political subdivision maintains a social media
28account, post the public hearing notice or an electronic link
29to the public hearing notice on each such account.
30The bill repeals Code sections 331.433A and 384.15A,
31applicable to the approval of county and city budgets.
32The bill makes corresponding changes to other Code chapters
33relating to county and city budgets.
34The bill makes penalties applicable by operation of Code
35section 24.24, which provides, in part, that failure on
-72-1the part of a public official to perform any of the duties
2prescribed in Code chapter 24 constitutes a simple misdemeanor,
3and is sufficient ground for removal from office. A simple
4misdemeanor is punishable by confinement for no more than 30
5days and a fine of at least $105 but not more than $855.
6The division may include a state mandate as defined in
7Code section 25B.3. The division makes inapplicable Code
8section 25B.2, subsection 3, which would relieve a political
9subdivision from complying with a state mandate if funding for
10the cost of the state mandate is not provided or specified.
11Therefore, political subdivisions are required to comply with
12any state mandate included in the division.
13The division applies to city, county, and school district
14budgets for fiscal years beginning on or after July 1, 2024.
15DIVISION XIV — DRIVER’S LICENSES AND NONOPERATOR’S
16IDENTIFICATION CARDS. Current law authorizes certain counties
17to issue driver’s licenses and nonoperator’s identification
18cards if the county meets standards set by the department
19of transportation. A county retains for deposit in the
20county general fund $7 of fees received for each issuance or
21renewal of driver’s licenses and nonoperator’s identification
22cards. The division allows a county authorized to issue
23driver’s licenses to charge a $10 convenience fee for the
24issuance or renewal of a driver’s license or nonoperator’s
25identification card to a person who is not a resident of the
26county. However, the county cannot charge the convenience fee
27to a nonresident person who pays property tax to the county if
28the person provides proof that they paid property tax, such as
29a receipt from the county treasurer or another form of proof
30as determined by the county. The county treasurer retains the
31entire convenience fee collected for deposit in the county
32general fund.
33DIVISION XV — WRITING FEES. The division relates to writing
34fees required for certain all-terrain vehicle, snowmobile, and
35water vessel transactions completed by a county recorder.
-73- 1WATER VESSELS. Under current law, a county recorder
2collects a writing fee of $1.25 for “each privilege” under
3Code chapter 462A (water navigation regulations). A writing
4fee is paid by the boat owner to the county recorder for
5handling the transaction. The writing fee is specifically
6required with applications for registration, including new
7or duplicate certificates of registration (Code section
8462A.5). The writing fee is also specifically required for
9transfers of ownership of vessels with an expired registration,
10due when the transferee pays all applicable fees for the
11current registration period (Code section 462A.43), and with
12applications for transfer (Code section 462A.44). The writing
13fee is not specifically mentioned for applications for issuance
14of a certificate of title (Code section 462A.77), which
15requires the application to be accompanied by the required
16fee. The required fee for issuance of a certificate of title,
17a transfer of title, a duplicate, or a corrected certificate
18of title is $5 plus a surcharge of $5 (Code section 462A.78).
19Likewise, the writing fee is not specifically mentioned for
20perfection of a security interest, for which the application
21fee is $5 (Code section 462A.84). The bill specifies that
22applications for a certificate of title or perfection of a
23security interest are subject to the writing fee. The bill
24increases the writing fee from $1.25 to $2.
25SNOWMOBILES AND ALL-TERRAIN VEHICLES. In contrast to
26water vessels, the writing fee provisions for snowmobiles and
27all-terrain vehicles explicitly impose the $1.25 writing fee
28only for registration or renewal, user permits, and duplicate
29special registration certificates (Code sections 321G.27 and
30321I.29). The bill alters these provisions to instead apply
31to “each privilege” under the respective Code chapter, and
32specifies that applications for a certificate of title or
33perfection of a security interest are subject to the writing
34fee. The bill increases the writing fee from $1.25 to $2.
35Current law provides that a license agent shall collect a
-74-1writing fee of $1 for each snowmobile or all-terrain vehicle
2registration or renewal and for the sale of each user permit.
3The bill does not amend these provisions.
-75-md/jh