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House File 718 - ReprintedA Bill ForAn Act 1relating to local government funding by modifying school
2district funding provisions, property tax calculation
3provisions, local government budgeting and bonding
4procedures, making transfers, and including effective date
5and applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2School Foundation PROPERTY Tax
3 Section 1. Section 8.57E, subsection 2, Code 2023, is
4amended by adding the following new paragraph:
5 NEW PARAGRAPH. c. For the fiscal year beginning July 1,
62023, and each fiscal year thereafter, there is transferred
7from the taxpayer relief fund to the general fund of the state
8the lesser of the balance of the taxpayer relief fund and an
9amount equal to the quotient of the assessed value of all
10taxable property in the state subject to the property tax levy
11under section 257.3 divided by one thousand dollars, to be
12used for the payment of increased foundation aid under section
13257.16 resulting from the reduction of the property tax levy
14rate under section 257.3 in this Act.
15 Sec. 2. Section 257.3, subsection 1, paragraph a, Code 2023,
16is amended to read as follows:
17a. Except as provided in subsections 2 and 3, a school
18district shall cause to be levied each year, for the school
19general fund, a foundation property tax equal to five four
20 dollars and forty cents per thousand dollars of assessed
21valuation on all taxable property in the district. The county
22auditor shall spread the foundation levy over all taxable
23property in the district.
24 Sec. 3. Section 257.3, subsection 2, paragraphs a and b,
25Code 2023, are amended to read as follows:
26a. Notwithstanding subsection 1, a reorganized school
27district shall cause a foundation property tax of four three
28 dollars and forty cents per thousand dollars of assessed
29valuation to be levied on all taxable property which, in the
30year preceding a reorganization, was within a school district
31affected by the reorganization as defined in section 275.1,
32or in the year preceding a dissolution was a part of a school
33district that dissolved if the dissolution proposal has
34been approved by the director of the department of education
35pursuant to section 275.55.
-1- 1b. In succeeding school years, the foundation property tax
2levy on that portion shall be increased to the rate of four
3 three dollars and ninety cents per thousand dollars of assessed
4valuation the first succeeding year, five four dollars and
5fifteen cents per thousand dollars of assessed valuation the
6second succeeding year, and five four dollars and forty cents
7per thousand dollars of assessed valuation the third succeeding
8year and each year thereafter.
9 Sec. 4. Section 425A.3, subsection 1, Code 2023, is amended
10to read as follows:
111. The family farm tax credit fund shall be apportioned
12each year in the manner provided in this chapter so as to give
13a credit against the tax on each eligible tract of agricultural
14land within the several school districts of the state in which
15the levy for the general school fund exceeds five dollars and
16forty cents per thousand dollars of assessed value the levy
17rate under section 257.3, subsection 1, paragraph “a”. The
18amount of the credit on each eligible tract of agricultural
19land shall be the amount the tax levied for the general school
20fund exceeds the amount of tax which would be levied on each
21eligible tract of agricultural land were the levy for the
22general school fund five dollars and forty cents per thousand
23dollars of assessed value the levy rate under section 257.3,
24subsection 1, paragraph “a”, for the previous year. However,
25in the case of a deficiency in the family farm tax credit fund
26to pay the credits in full, the credit on each eligible tract
27of agricultural land in the state shall be proportionate and
28applied as provided in this chapter.
29 Sec. 5. Section 425A.5, Code 2023, is amended to read as
30follows:
31425A.5 Computation by county auditor.
32The family farm tax credit allowed each year shall be
33computed as follows: On or before April 1, the county auditor
34shall list by school districts all tracts of agricultural
35land which are entitled to credit, the taxable value for the
-2-1previous year, the budget from each school district for the
2previous year, and the tax rate determined for the general
3fund of the school district in the manner prescribed in
4section 444.3 for the previous year, and if the tax rate is in
5excess of five dollars and forty cents per thousand dollars of
6assessed value the levy rate under section 257.3, subsection
71, paragraph “a”, the auditor shall multiply the tax levy which
8is in excess of five dollars and forty cents per thousand
9dollars of assessed value the levy rate under section 257.3,
10subsection 1, paragraph “a”, by the total taxable value of the
11agricultural land entitled to credit in the school district,
12and on or before April 1, certify the total amount of credit
13and the total number of acres entitled to the credit to the
14department of revenue.
15 Sec. 6. Section 426.3, Code 2023, is amended to read as
16follows:
17426.3 Where credit given.
18The agricultural land credit fund shall be apportioned each
19year in the manner hereinafter provided so as to give a credit
20against the tax on each tract of agricultural lands within the
21several school districts of the state in which the levy for
22the general school fund exceeds five dollars and forty cents
23per thousand dollars of assessed value the levy rate under
24section 257.3, subsection 1, paragraph “a”; the amount of such
25credit on each tract of such lands shall be the amount the tax
26levied for the general school fund exceeds the amount of tax
27which would be levied on said tract of such lands were the
28levy for the general school fund five dollars and forty cents
29per thousand dollars of assessed value the levy rate under
30section 257.3, subsection 1, paragraph “a”, for the previous
31year, except in the case of a deficiency in the agricultural
32land credit fund to pay said credits in full, in which case the
33credit on each eligible tract of such lands in the state shall
34be proportionate and shall be applied as hereinafter provided.
35 Sec. 7. Section 426.6, subsection 1, Code 2023, is amended
-3-1to read as follows:
21. The agricultural land tax credit allowed each year
3shall be computed as follows: On or before April 1, the
4county auditor shall list by school districts all tracts of
5agricultural lands which are entitled to credit, together with
6the taxable value for the previous year, together with the
7budget from each school district for the previous year, and the
8tax rate determined for the general fund of the district in
9the manner prescribed in section 444.3 for the previous year,
10and if such tax rate is in excess of five dollars and forty
11cents per thousand dollars of assessed value the levy rate
12under section 257.3, subsection 1, paragraph “a”, the auditor
13shall multiply the tax levy which is in excess of five dollars
14and forty cents per thousand dollars of assessed value the
15levy rate under section 257.3, subsection 1, paragraph “a”, by
16the total taxable value of the agricultural lands entitled to
17credit in the district, and on or before April 1, certify the
18amount to the department of revenue.
19 Sec. 8. ADJUSTMENT OF CALCULATIONS. For property tax
20credits under chapters 425A and 426 for property taxes due and
21payable in the fiscal year beginning July 1, 2023, the tax rate
22determined for the general fund of the school district in the
23manner prescribed in section 444.3 for the previous year shall
24be determined using the applicable property tax levy rate under
25section 257.3, as amended in this division of this Act.
26 Sec. 9. EFFECTIVE DATE. This division of this Act, being
27deemed of immediate importance, takes effect upon enactment.
28 Sec. 10. APPLICABILITY. The following apply July 1, 2023,
29for school budget years beginning on or after that date:
301. The section of this division of this Act amending section
31257.3, subsection 1, paragraph “a”.
322. The section of this division of this Act amending section
33257.3, subsection 2, paragraphs “a” and “b”.
34DIVISION II
35PROPERTY TAX LIMITATION
-4-1 Sec. 11. Section 443.2, subsection 1, Code 2023, is amended
2to read as follows:
31. Before the first day of July in each year, the county
4auditor shall transcribe the assessments of the townships and
5cities into a book or record, to be known as the tax list,
6properly ruled and headed, with separate columns, in which
7shall be entered the names of the taxpayers, descriptions of
8lands, number of acres and value, numbers of city lots and
9value, and each description of tax, with a column for polls and
10one for payments, and shall complete it by entering the amount
11due on each installment, separately, and carrying out the total
12of both installments. The total of all columns of each page of
13each book or other record shall balance with the tax totals.
14After computing the amount of tax due and payable on each
15property, the county auditor shall round the total amount of
16tax due and payable on the property to the nearest even whole
17dollar and, if applicable, reduce the amounts due and payable
18as required under section 444.25.
19 Sec. 12. Section 444.1, Code 2023, is amended to read as
20follows:
21444.1 Basis for amount of tax.
22In all taxing districts in the state, including townships,
23school districts, cities, and counties, when by law then
24existing the people are authorized to determine by vote, or
25officers are authorized to estimate or determine, a rate of
26taxation required for any public purpose, such rate shall in
27all cases be estimated and based upon the adjusted taxable
28valuation of such taxing district for the preceding calendar
29year and subject to the limitation of section 444.25.
30 Sec. 13. Section 444.2, Code 2023, is amended to read as
31follows:
32444.2 Amounts certified in dollars.
33When an authorized tax rate within a taxing district,
34including townships, school districts, cities, and counties,
35has been thus determined as provided by law, the officer or
-5-1officers charged with the duty of certifying the authorized
2rate to the county auditor or board of supervisors shall,
3before certifying the rate, compute upon the adjusted taxable
4valuation of the taxing district for the preceding fiscal year,
5the amount of tax the rate will raise, stated in dollars,
6subject to the limitation of section 444.25, and shall certify
7the computed amount in dollars and not by rate, to the county
8auditor and board of supervisors.
9 Sec. 14. Section 444.3, Code 2023, is amended to read as
10follows:
11444.3 Computation of rate.
12When the valuations for the several taxing districts shall
13have been adjusted by the several boards for the current
14year, the county auditor shall thereupon apply such a rate,
15not exceeding the rate authorized by law, as will raise the
16amount required for such taxing district, and no larger amount,
17subject to the limitation under section 444.25. For purposes
18of computing the rate under this section, the adjusted taxable
19valuation of the property of a taxing district does not include
20the valuation of property of a railway corporation or its
21trustee which corporation has been declared bankrupt or is in
22bankruptcy proceedings. Nothing in the preceding sentence
23exempts the property of such railway corporation or its trustee
24from taxation and the rate computed under this section shall
25be levied on the taxable property of such railway corporation
26or its trustee.
27 Sec. 15. Section 444.22, Code 2023, is amended to read as
28follows:
29444.22 Annual levy.
30In each year the director of revenue shall fix the rate in
31percentage to be levied upon the assessed valuation of the
32taxable property of the state necessary to raise the amount for
33general state purposes as shall be designated by the department
34of management, subject to the limitation under section 444.25.
35 Sec. 16. NEW SECTION. 444.25 Property tax amount limitation
-6-1— reduction.
21. For purposes of this section:
3a. “Base year” means the assessment year preceding the
4assessment year used to calculate property taxes due and
5payable in the applicable fiscal year.
6b. “Local taxing authority” means a city, county, community
7college, school district, or other governmental subdivision
8located in this state and authorized to certify a levy on
9property located within such authority.
10c. “New construction” means buildings, structures, or
11improvements constructed or relocated on or made to the parcel.
12d. “Parcel” means each separate item shown on the tax list,
13manufactured or mobile home tax list, schedule of assessment,
14or schedule of rate or charge.
15e. “Property taxes” means annual ad valorem taxes imposed
16on the parcel which are collectable by the county treasurer
17following application of all applicable exemptions and credits,
18and shall not include special assessments, amounts levied under
19chapter 468, or taxes under chapter 435. “Property taxes” also
20do not include taxes levied as the result of a property tax
21levy approved at election or that portion of any property tax
22levy imposed that is for the payment of principal and interest
23on bonds or other indebtedness the issuance of which was
24approved at election, including refunding bonds issued for the
25repayment of bonds that were approved at election.
26f. “Qualified parcel” means a parcel that is not located
27in an urban renewal area under chapter 403 or an urban
28revitalization area under chapter 404, is not wind energy
29conversion property as defined in section 427B.26, and for
30which none of the following apply:
31(1) The parcel changed ownership during the base year.
32(2) New construction occurred on the parcel during the base
33year.
34(3) The parcel’s assessment for the base year was a partial
35assessment as the result of incomplete new construction or
-7-1improvements.
2(4) The parcel was omitted from assessment or fraudulently
3withheld from assessment in the base year.
4(5) The parcel’s property taxes were suspended or abated
5under sections 427.8, 427.9, and 427.10.
6(6) The parcel’s classification is different from the base
7year.
82. a. For property taxes due and payable in fiscal years
9beginning on or after July 1, 2024, if the amount of property
10taxes otherwise calculated to be due and payable on a qualified
11parcel of residential property or agricultural property
12exceeds one hundred three percent of the actual amount of
13property taxes due and payable on the parcel in the immediately
14preceding fiscal year, such amount shall be reduced as provided
15in subsection 3. If, however, improvements or renovations, not
16amounting to new construction, occurs on the property during
17the base year, the threshold amount of property taxes shall be
18one hundred three percent plus the percentage of the parcel’s
19taxable value attributable to the improvements or renovations.
20Improvements or renovations do not include normal and necessary
21repairs to an existing building or improvement, not amounting
22to structural replacements or modifications.
23b. For property taxes due and payable in fiscal years
24beginning on or after July 1, 2024, if the amount of property
25taxes otherwise calculated to be due and payable on a qualified
26parcel of commercial property or industrial property exceeds
27one hundred eight percent of the actual amount of property
28taxes due and payable on the parcel in the immediately
29preceding fiscal year, such amount shall be reduced as provided
30in subsection 3. If, however, improvements or renovations, not
31amounting to new construction, occurs on the property during
32the base year, the threshold amount of property taxes shall be
33one hundred eight percent plus the percentage of the parcel’s
34taxable value attributable to the improvements or renovations.
35Improvements or renovations do not include normal and necessary
-8-1repairs to an existing building or improvement, not amounting
2to structural replacements or modifications.
3c. Property taxes levied by a political subdivision that did
4not exist for the immediately preceding fiscal year shall not
5be included in the calculation of the property tax to be due
6and payable for the fiscal year and shall not be reduced under
7subsection 3.
83. a. If the total amount of property taxes due and
9payable on the parcel exceeds the applicable threshold for
10the parcel under subsection 2, the amount of property taxes
11due and payable to each taxing authority that certified for
12levy property taxes on the parcel in excess of the applicable
13threshold percentage of such amount levied by that taxing
14authority on the parcel in the immediately preceding fiscal
15year shall be reduced by the amount by which the parcel’s
16total amount of property taxes due and payable for all taxing
17authorities exceeds the applicable threshold for the parcel
18under subsection 2.
19b. The amount of the reduction shall be proportionately
20applied among the various levies for property taxes, or
21portions thereof, of those taxing authorities that certified
22for levy property taxes on the parcel in excess of the
23applicable threshold percentage of such amount levied by that
24taxing authority on the parcel in the immediately preceding
25fiscal year.
26c. The reductions shall be made by the county auditor prior
27to delivery of the tax list prescribed in chapter 443 to ensure
28accurate statement of taxes under section 445.5.
294. The director of the department of revenue shall adopt
30rules pursuant to chapter 17A to administer and interpret this
31section.
32 Sec. 17. Section 445.5, subsection 1, paragraphs e, f, g,
33and h, Code 2023, are amended to read as follows:
34e. The complete name of all taxing authorities receiving a
35tax distribution, the amount of the distribution, the amount of
-9-1any reduction resulting from section 444.25, and the percentage
2distribution for each named authority, listed from the highest
3to the lowest distribution percentage.
4f. The consolidated levy rate for one thousand dollars
5of taxable valuation multiplied by the taxable valuation to
6produce the gross taxes levied before application of credits
7against levied taxes for the previous and current fiscal years
8and before any reduction resulting from section 444.25.
9g. The itemized credits against levied taxes deducted from
10the gross taxes levied in order to produce the net taxes owed
11for the previous and current fiscal years and the amount of any
12reductions under section 444.25 for previous and current fiscal
13years.
14h. The total amount of taxes levied by each taxing authority
15in the previous fiscal year and the current fiscal year and the
16difference between the two amounts, expressed as a percentage
17increase or decrease, and the amount of any reduction to a
18taxing authority resulting from section 444.25.
19 Sec. 18. Section 445.57, subsection 1, Code 2023, is amended
20to read as follows:
211. On or before the tenth day of each month, the county
22treasurer shall apportion all taxes collected during the
23preceding month, except partial payment amounts collected
24pursuant to section 445.36A, subsection 1, partial payments
25collected and not yet designated by the county treasurer
26for apportionment pursuant to section 445.36A, subsection
272, partial payments collected pursuant to section 435.24,
28subsection 6, paragraph “a”, and partial payments collected and
29not yet designated by the county treasurer for apportionment
30pursuant to section 435.24, subsection 6, paragraph “b”, among
31the several funds to which they belong according to the amount
32levied for each fund, as adjusted under section 444.25, if
33applicable, and shall apportion the interest, fees, and costs
34on the taxes to the general fund, and shall enter those amounts
35upon the treasurer’s cash account, and report the amounts to
-10-1the county auditor.
2 Sec. 19. IMPLEMENTATION OF ACT.
31. Section 25B.2, subsection 3, shall not apply to this
4division of this Act.
52. Section 25B.7 shall not apply to this division of this
6Act.
7 Sec. 20. APPLICABILITY. This division of this Act applies
8to property taxes due and payable in fiscal years beginning on
9or after July 1, 2024.
10DIVISION III
11LOCAL GOVERNMENT BUDGETS
12 Sec. 21. Section 24.9, subsection 1, Code 2023, is amended
13to read as follows:
141. a. Each municipality shall file with the secretary or
15clerk thereof the estimates required to be made in sections
1624.3 through 24.8, at least twenty days before the date fixed
17by law for certifying the same to the levying board and shall
18forthwith fix a date for a hearing on the estimates, and
19shall publish such estimates and any annual levies previously
20authorized as provided in section 76.2, with a notice of the
21time when and the place where such hearing shall be held not
22less than ten nor more than twenty days before the hearing.
23Provided that in municipalities of less than two hundred
24population such estimates and the notice of hearing shall
25be posted in three public places in the district in lieu of
26publication. For any other municipality such publication
27shall be in a newspaper published in the municipality, if any,
28if not, then in a newspaper of general circulation in the
29municipality. Except for a municipality with property tax
30revenues for the immediately preceding fiscal year of less
31than five thousand dollars, the notice shall also include the
32information required under paragraph “c”, subparagraph (2),
33subparagraph divisions (a) through (d), which shall be adopted
34by resolution of the municipality.
35b. The department of management shall prescribe the form for
-11-1public hearing notices for use by municipalities and notices
2required to be sent under paragraph “c”.
3c. (1) For purposes of this paragraph:
4(a) “Budget year” is the fiscal year beginning during the
5calendar year in which a budget is certified.
6(b) “Current fiscal year” is the fiscal year ending during
7the calendar year in which a budget for the budget year is
8certified.
9(c) “Effective property tax rate” means the property tax
10rate per one thousand dollars of assessed value and is equal to
11one thousand multiplied by the quotient of the current fiscal
12year’s actual property tax dollars certified for levy divided
13by the total assessed value used to calculate taxes for the
14budget year.
15(2) In addition to the notices published and posted
16under paragraph “a”, the municipality shall direct the
17county treasurer to send to each owner or taxpayer within
18the municipality by regular mail, on or before the date of
19publication under paragraph “a”, and pursuant to section
20331.553, subsection 9, an individual notice containing all of
21the following:
22(a) The sum of the current fiscal year’s actual property
23taxes certified for levy by the municipality and the
24municipality’s current fiscal year’s combined property tax rate
25for such amount.
26(b) The effective property tax rate calculated using the sum
27of the current fiscal year’s actual property taxes certified by
28the municipality.
29(c) The sum of the proposed property tax dollars to be
30certified for levy by the municipality for the budget year and
31the proposed combined property tax rate for such amount.
32(d) If the proposed property tax dollars specified under
33subparagraph division (c) exceeds the current fiscal year’s
34actual property tax dollars certified for levy specified in
35subparagraph division (a), a statement of the major reasons for
-12-1the increase.
2(e) The assessed value of the owner’s or taxpayer’s property
3used to calculate property taxes for the current fiscal year.
4(f) The assessed value of the owner’s or taxpayer’s property
5used to calculate property taxes for the budget year.
6(g) The amount of property taxes due on the owner’s or
7taxpayer’s property for the current fiscal year for the
8municipality.
9(h) The proposed amount of property taxes to be levied
10against the owner’s or taxpayer’s property for the budget year
11for the municipality.
12(3) This paragraph does not apply to municipalities with
13property tax revenues for the immediately preceding fiscal year
14of less than five thousand dollars.
15 Sec. 22. Section 24.17, subsection 1, Code 2023, is amended
16to read as follows:
171. The local budgets of the various political subdivisions
18shall be certified by the chairperson of the certifying
19board or levying board, as the case may be, in duplicate to
20the county auditor not later than March April 15 of each
21year on forms, and pursuant to instructions, prescribed by
22the department of management. However, if the political
23subdivision is a county or a city, its budget shall be
24certified not later than March 31 of each year, and if the
25political subdivision is a school district, as defined in
26section 257.2, its budget shall be certified not later than
27April 15 of each year.
28 Sec. 23. Section 24.27, subsection 1, Code 2023, is amended
29to read as follows:
301. Not later than March 25, or April 10 for a county or a
31city, or April 25 if the municipality is a school district, a
32number of persons in any municipality political subdivision
33 equal to one-fourth of one percent of those voting for the
34office of governor, at the last general election in the
35municipality political subdivision, but the number shall not be
-13-1less than ten, and the number need not be more than one hundred
2persons, who are affected by any proposed budget, expenditure
3or tax levy, or by any item thereof, may appeal from any
4decision of the certifying board or the levying board by filing
5with the county auditor of the county in which the municipal
6corporation political subdivision is located, a written protest
7setting forth their objections to the budget, expenditure or
8tax levy, or to one or more items thereof, and the grounds for
9their objections. If a budget is certified after March 15,
10or March 31 in the case of a county or a city, or April 15 in
11the case of a school district, all appeal time limits shall be
12extended to correspond to allowances for a timely filing.
13 Sec. 24. Section 24.28, Code 2023, is amended to read as
14follows:
1524.28 Hearing on protest.
16The state board, within a reasonable time, shall fix a date
17for an initial hearing on the protest and may designate a
18deputy to hold the hearing, which shall be held in the county
19or in one of the counties in which the municipality political
20subdivision is located. Notice of the time and place of the
21hearing shall be given by certified mail to the appropriate
22officials of the local government and to the first ten property
23owners whose names appear upon the protest, at least five
24days before the date fixed for the hearing. At all hearings,
25the burden shall be upon the objectors with reference to any
26proposed item in the budget which was included in the budget
27of the previous year and which the objectors propose should
28be reduced or excluded; but the burden shall be upon the
29certifying board or the levying board, as the case may be,
30to show that any new item in the budget, or any increase in
31any item in the budget, is necessary, reasonable, and in the
32interest of the public welfare.
33 Sec. 25. Section 24.48, subsection 4, Code 2023, is amended
34to read as follows:
354. The city finance committee shall have officially
-14-1notified any city of its approval, modification or rejection
2of the city’s appeal of the decision of the director of the
3department of management regarding a city’s request for a
4suspension of the statutory property tax levy limitation prior
5to thirty-five days before March 31 April 15.
6 Sec. 26. Section 331.422, unnumbered paragraph 1, Code
72023, is amended to read as follows:
8Subject to this section and sections 331.423 through 331.426
9or as otherwise provided by state law, the board of each county
10shall certify property taxes annually at its March April
11 session to be levied for county purposes as follows:
12 Sec. 27. Section 331.433A, subsection 4, paragraph b, Code
132023, is amended to read as follows:
14b. Proof of publication shall be filed with and preserved
15by the auditor. The department of management shall prescribe
16the form for the public hearing notice for use by counties, the
17form for individual notices provided under paragraph “c”, and
18the form for the resolution to be adopted by the board under
19subsection 5.
20 Sec. 28. Section 331.433A, subsection 4, Code 2023, is
21amended by adding the following new paragraph:
22 NEW PARAGRAPH. c. In addition to the notices published
23and posted under paragraph “a”, the county shall direct the
24county treasurer to send to each owner or taxpayer by regular
25mail, on or before the date of publication under paragraph “a”,
26and pursuant to section 331.553, subsection 9, an individual
27notice containing the information required under paragraph “a”,
28subparagraphs (1) through (4), and all of the following:
29(1) The assessed value of the owner’s or taxpayer’s property
30used to calculate property taxes for the current fiscal year.
31(2) The assessed value of the owner’s or taxpayer’s property
32used to calculate property taxes for the budget year.
33(3) The amount of property taxes due on the owner’s or
34taxpayer’s property for the current fiscal year for general
35county services and rural county services under the levies
-15-1specified in subsection 2, paragraphs “a” and “b”.
2(4) The proposed amount of property taxes to be levied
3against the owner’s or taxpayer’s property for the budget year
4for general county services and rural county services under the
5levies specified in subsection 2, paragraphs “a” and “b”.
6 Sec. 29. Section 331.433A, subsection 5, paragraph a, Code
72023, is amended to read as follows:
8a. At the public hearing, the board shall receive oral
9or written objections from any resident or property owner
10of the county. After all objections have been received and
11considered, the board may decrease, but not increase, the
12proposed maximum property tax dollar amounts for inclusion in
13the resolution and shall adopt the resolution and file the
14resolution with the auditor as required under section 331.434,
15subsection 3. In addition to the proposed maximum property tax
16dollar amounts for general county services and rural county
17services, the resolution shall also include the effective
18property tax rate for general county services, the effective
19property tax rate for rural county services, the estimated
20property tax rate for the proposed general county services
21maximum property tax dollar amount, and the estimated property
22tax rate for the proposed rural county services maximum
23property tax dollar amount.
24 Sec. 30. Section 331.434, subsection 7, Code 2023, is
25amended to read as follows:
267. Taxes levied by a county whose budget is certified after
27March 31 April 15 shall be limited to the prior year’s budget
28amount. However, this penalty may be waived by the director
29of the department of management if the county demonstrates
30that the March 31 deadline was missed because of circumstances
31beyond the control of the county.
32 Sec. 31. Section 331.436, Code 2023, is amended to read as
33follows:
34331.436 Protest.
35Protests to the adopted budget must be made in accordance
-16-1with 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. 32. Section 331.553, Code 2023, is amended by adding
7the following new subsection:
8 NEW SUBSECTION. 9. Consolidate all required individual
9notices required under section 24.9, subsection 1, paragraph
10“c”, subparagraph (2), section 331.433A, subsection 4,
11paragraph “c”, section 359.49, subsection 4, paragraph “b”,
12subparagraph (2), and section 384.15A, subsection 4, paragraph
13“c”, so that all applicable notices appear on a single
14individual notice for each owner or taxpayer.
15 Sec. 33. Section 358.18, subsection 2, Code 2023, is amended
16to read as follows:
172. All taxes thus levied by the board shall be certified by
18the clerk on or before March 1 April 15 to the county auditor
19of each county wherein any of the property included within
20the territorial limits of the sanitary district is located,
21and shall be placed upon the tax list for the current fiscal
22year by the auditor or auditors. The county treasurer, or
23treasurers, of more than one county, shall collect all taxes so
24levied in the same manner as other taxes, and when delinquent
25the taxes shall draw the same interest. All taxes levied and
26collected shall be paid over by the officer collecting the
27taxes to the treasurer of the sanitary district.
28 Sec. 34. Section 358C.14, subsection 2, Code 2023, is
29amended to read as follows:
302. All taxes thus levied by the board shall be certified by
31the clerk on or before March 1 April 15 to the county auditor
32of each county in which any of the property included within
33the territorial limits of the district is located, and shall
34be placed upon the tax list for the current fiscal year by the
35auditor. The county treasurer of more than one county shall
-17-1collect all taxes so levied in the same manner as other taxes,
2and when delinquent the taxes shall draw the same interest.
3All taxes levied and collected shall be paid over by the
4officer collecting the taxes to the treasurer of the district.
5 Sec. 35. Section 359.49, subsection 4, Code 2023, is amended
6to read as follows:
74. a. The board of trustees shall transmit a copy of the
8proposed budget and a notice of the meeting set as required by
9subsection 5 to the county auditor for posting. The county
10auditor shall post the notice and the proposed budget in an
11area of the courthouse where notices to the public are commonly
12posted. The notice shall also include the information required
13under paragraph “b”, subparagraph (2), subparagraph divisions
14(a) through (d), which shall be adopted by resolution of the
15board of trustees.
16b. (1) For purposes of this paragraph:
17(a) “Budget year” is the fiscal year beginning during the
18calendar year in which a budget is certified.
19(b) “Current fiscal year” is the fiscal year ending during
20the calendar year in which a budget for the budget year is
21certified.
22(c) “Effective property tax rate” means the property tax
23rate per one thousand dollars of assessed value and is equal to
24one thousand multiplied by the quotient of the current fiscal
25year’s actual property tax dollars certified for levy divided
26by the total assessed value used to calculate taxes for the
27budget year.
28(2) In addition to the notices published and posted under
29paragraph “a”, the township shall direct the county treasurer to
30send to each owner or taxpayer within the township by regular
31mail, on or before the date of posting under paragraph “a”, and
32pursuant to section 331.553, subsection 9, an individual notice
33containing all of the following:
34(a) The sum of the current fiscal year’s actual property
35taxes certified for levy by the township and the township’s
-18-1current fiscal year’s combined property tax rate for such
2amount.
3(b) The effective property tax rate calculated using the sum
4of the current fiscal year’s actual property taxes certified by
5the township.
6(c) The sum of the proposed property tax dollars to be
7certified for levy by the township for the budget year and the
8proposed combined property tax rate for such amount.
9(d) If the proposed property tax dollars specified under
10subparagraph division (c) exceed the current fiscal year’s
11actual property tax dollars certified for levy specified in
12subparagraph division (a), a statement of the major reasons for
13the increase.
14(e) The assessed value of the owner’s or taxpayer’s property
15used to calculate property taxes for the current fiscal year.
16(f) The assessed value of the owner’s or taxpayer’s property
17used to calculate property taxes for the budget year.
18(g) The amount of property taxes due on the owner’s or
19taxpayer’s property for the current fiscal year for the
20township.
21(h) The proposed amount of property taxes to be levied
22against the owner’s or taxpayer’s property for the budget year
23for the township.
24 Sec. 36. Section 359.49, subsections 7 and 9, Code 2023, are
25amended to read as follows:
267. After the meeting on the proposed budget, the board of
27trustees shall adopt by resolution a budget for at least the
28next fiscal year, and the clerk shall certify the necessary
29tax levy for the next fiscal year to the county auditor and
30the county board of supervisors by March April 15. The tax
31levy certified may be less than but shall not be more than
32the amount estimated in the proposed budget submitted at the
33meeting. Two copies each of the detailed budget as adopted and
34of the certified tax levy must be transmitted to the county
35auditor by March April 15.
-19- 19. Taxes from a township levy shall be collected but not
2disbursed by the county to a township until copies of the
3township budget are transmitted to the county auditor as
4required in subsection 7. If a township fails to certify
5property taxes by March April 15, the amount of taxes collected
6by the county for the township shall be the amount collected
7for the township in the previous fiscal year to the extent that
8it does not exceed the applicable levy rate limits in this
9chapter. However, that amount may not exceed the amount the
10township could collect based on property assessments for the
11fiscal year for which the township failed to certify property
12taxes.
13 Sec. 37. Section 384.2, subsection 1, Code 2023, is amended
14to read as follows:
151. Except as otherwise provided for special charter cities,
16a city’s fiscal year shall be as provided in section 24.2,
17subsection 3. All city property taxes must be certified by
18a city to the county auditor on or before March 31 April
1915 of each year, unless otherwise provided by state law.
20However, municipal utilities, if not supported by taxation
21or the proceeds of outstanding indebtedness payable from
22taxes may, with the council’s consent, choose to operate on a
23fiscal year which is the calendar year. The receipt by the
24utility of payments from other governmental funds for public
25fire protection, street lighting, or other public use of the
26utility’s services shall not be deemed support by taxation.
27After notice and hearing in the same manner as required for the
28city’s regular budget under section 384.16, the utility budget
29must be approved by resolution of the council not later than
30twenty days prior to the beginning of the calendar year for
31which the budget applies.
32 Sec. 38. Section 384.15A, subsection 4, paragraph b, Code
332023, is amended to read as follows:
34b. Proof of publication shall be filed with and preserved
35by the county auditor. The department of management shall
-20-1prescribe the form for the public hearing notice for use
2by cities, the form for individual notices provided under
3paragraph “c”, and the form for the resolution to be adopted by
4the council under subsection 5.
5 Sec. 39. Section 384.15A, subsection 4, Code 2023, is
6amended by adding the following new paragraph:
7 NEW PARAGRAPH. c. In addition to the notices published and
8posted under paragraph “a”, the city shall direct the county
9treasurer to send to each owner or taxpayer by regular mail,
10on or before the date of publication under paragraph “a”,
11and pursuant to section 330.553, subsection 9, an individual
12notice containing the information required under paragraph “a”,
13subparagraphs (1) through (4), and all of the following:
14(1) The assessed value of the owner’s or taxpayer’s property
15used to calculate property taxes for the current fiscal year.
16(2) The assessed value of the owner’s or taxpayer’s property
17used to calculate property taxes for the budget year.
18(3) The amount of property taxes due on the owner’s or
19taxpayer’s property for the current fiscal year for the city
20under the levies specified in subsection 2.
21(4) The proposed amount of property taxes to be levied
22against the owner’s or taxpayer’s property for the budget year
23for the city under the levies specified in subsection 2.
24 Sec. 40. Section 384.15A, subsection 5, paragraph a, Code
252023, is amended to read as follows:
26a. At the public hearing, the council shall receive oral
27or written objections from any resident or property owner
28of the city. After all objections have been received and
29considered, the council may decrease, but not increase, the
30proposed maximum property tax dollar amount for inclusion in
31the resolution and shall adopt the resolution and file the
32resolution with the county auditor as required under section
33384.16, subsection 3. In addition to the proposed maximum
34property tax dollar amount, the resolution shall also include
35the effective property tax rate, and the estimated property tax
-21-1rate for the proposed maximum property tax dollar amount.
2 Sec. 41. Section 384.16, subsection 6, Code 2023, is amended
3to read as follows:
46. Taxes levied by a city whose budget is certified after
5March 31 April 15 shall be limited to the prior year’s budget
6amount. However, this penalty may be waived by the director of
7the department of management if the city demonstrates that the
8March 31 deadline was missed because of circumstances beyond
9the control of the city.
10 Sec. 42. IMPLEMENTATION. Section 25B.2, subsection 3,
11shall not apply to this division of this Act.
12 Sec. 43. APPLICABILITY. This division of this Act applies
13to county, city, township, and municipality budgets for fiscal
14years beginning on or after July 1, 2024.
15DIVISION IV
16BOND ELECTIONS
17 Sec. 44. Section 28E.16, Code 2023, is amended to read as
18follows:
1928E.16 Election for bonds.
20When bonds which require a vote of the people are to be
21issued for financing joint facilities of a county and one or
22more cities within the county, pursuant to an agreement made
23under the authority of this chapter, or pursuant to other
24provisions of law, the board of supervisors and the council of
25each city shall arrange for a single election on the question
26of issuing the bonds, but if the county and the cities are
27proposing to make separate bond issues, the ballot shall
28contain separate questions, one to be voted upon by all voters
29of the county, and one or more to be voted upon only by the
30voters of the city which is to make a separate bond issue. All
31elections on the question of issuing the bonds shall be held on
32the date specified in section 39.2, subsection 4, paragraph “d”.
33 Sec. 45. Section 39.2, subsection 4, Code 2023, is amended
34to read as follows:
354. Unless otherwise provided by law, special elections on
-22-1public measures are limited to the following dates:
2a. For Except as provided in paragraph “d”, for a county, in
3an odd-numbered year, the first Tuesday in March, the second
4Tuesday in September, or the first Tuesday after the first
5Monday in November. For a county, in an even-numbered year,
6the first Tuesday in March, the second Tuesday in September, or
7the first Tuesday after the first Monday in November.
8b. For Except as provided in paragraph “d”, for a city, in
9an odd-numbered year, the first Tuesday in March, the second
10Tuesday in September, or the first Tuesday after the first
11Monday in November. For a city, in an even-numbered year, the
12first Tuesday in March or the second Tuesday in September.
13c. For Except as provided in paragraph “d”, for a school
14district or merged area, in the odd-numbered year, the first
15Tuesday in March, the second Tuesday in September, or the first
16Tuesday after the first Monday in November. For a school
17district or merged area, in the even-numbered year, the first
18Tuesday in March, or the second Tuesday in September.
19d. For any political subdivision of this state, if the
20special election is in whole or in part for the question of
21issuing bonds or other indebtedness, the first Tuesday after
22the first Monday in November.
23 Sec. 46. NEW SECTION. 39.5 Notice of bond election.
24In addition to any other notice related to the election
25required by law to be published, posted, or provided, if the
26election is subject to section 39.2, subsection 4, paragraph
27“d”, the commissioner shall not less than ten nor more than
28twenty days before the day of each election mail to each
29registered voter of the applicable jurisdiction a notice of the
30election that includes the full text of the public measure to
31be voted upon at the election.
32 Sec. 47. Section 75.1, subsection 1, paragraph a, Code 2023,
33is amended to read as follows:
34a. When a proposition to authorize an issuance of bonds
35by a county, township, school corporation, city, or by any
-23-1local board or commission, is submitted to the electors, such
2proposition shall not be deemed carried or adopted, anything
3in the statutes to the contrary notwithstanding, unless the
4vote in favor of such authorization is equal to at least sixty
5percent of the total vote cast for and against said proposition
6at said election. All elections on such proposition shall
7be held on the date specified in section 39.2, subsection 4,
8paragraph “d”.
9 Sec. 48. Section 75.1, subsection 2, Code 2023, is amended
10by striking the subsection.
11 Sec. 49. Section 279.39, Code 2023, is amended to read as
12follows:
13279.39 School buildings.
14The board of any school corporation shall establish
15attendance centers and provide suitable buildings for each
16school in the district and may at the regular or a special
17meeting resolve to submit to the registered voters of the
18district at an election held on a date specified in section
1939.2, subsection 4, paragraph “c”, the question of voting a tax
20or authorizing the board to issue bonds, or both.
21 Sec. 50. Section 296.3, Code 2023, is amended to read as
22follows:
23296.3 Election called.
24Within ten days of receipt of a petition filed under section
25296.2, the president of the board of directors shall call a
26meeting of the board. The meeting shall be held within thirty
27days after the petition was received. At the meeting, the
28board shall call the election, fixing the time of the election,
29which may be at the time and place of holding the regular
30school election as required by section 39.2, subsection 4,
31paragraph “d”. However, if the board determines by unanimous
32vote that the proposition or propositions requested by a
33petition to be submitted at an election are grossly unrealistic
34or contrary to the needs of the school district, no election
35shall be called. If more than one petition has been received
-24-1by the time the board meets to consider the petition triggering
2the meeting, the board shall act upon the petitions in the
3order they were received at the meeting called to consider the
4initial petition. The decision of the board may be appealed to
5the state board of education as provided in chapter 290. The
6president shall notify the county commissioner of elections of
7the time of the election.
8 Sec. 51. Section 298.21, unnumbered paragraph 1, Code 2023,
9is amended to read as follows:
10The board of directors of any school corporation when
11authorized by the voters at an election held on a date
12specified in section 39.2, subsection 4, paragraph “c” “d”,
13may issue the negotiable, interest-bearing school bonds of the
14corporation for borrowing money for any or all of the following
15purposes:
16 Sec. 52. Section 331.442, subsection 3, Code 2023, is
17amended to read as follows:
183. a. All elections held pursuant to this section shall
19be held on the date specified in section 39.2, subsection 4,
20paragraph “d”.
21b. Notice of the election shall be given by publication as
22specified in section 331.305. At the election the ballot used
23for the submission of the proposition shall be in substantially
24the form for submitting special questions at general elections.
25 Sec. 53. Section 346.27, subsection 10, paragraph a, Code
262023, is amended to read as follows:
27a. After the incorporation of an authority, and before the
28sale of any issue of revenue bonds, except refunding bonds, the
29authority shall submit to the voters the question of whether
30the authority shall issue and sell revenue bonds. The ballot
31shall state the amount of the bonds and the purposes for
32which the authority is incorporated. All registered voters
33of the county shall be entitled to vote on the question. The
34question may shall be submitted at an election held on a the
35 date specified in section 39.2, subsection 4, paragraph “a” or
-25-1“b”, as applicable “d”. An affirmative vote of a majority of
2the votes cast on the question is required to authorize the
3issuance and sale of revenue bonds.
4 Sec. 54. Section 357C.10, Code 2023, is amended to read as
5follows:
6357C.10 Bonds in anticipation of revenue.
7Benefited street lighting districts may anticipate the
8collection of taxes by the levy herein provided, and to carry
9out the purposes of this chapter may issue bonds payable
10in not more than ten equal installments, with the rate of
11interest thereon not exceeding that permitted by chapter 74A.
12No indebtedness shall be incurred under this chapter until
13authorized by an election. Such election shall be held and
14notice given in the same manner as the election provided herein
15for the authorization of a tax levy, and the same sixty percent
16vote shall be necessary to authorize indebtedness. Both
17 Subject to section 39.2, subsection 4, both propositions may be
18submitted to the voters in the same election.
19 Sec. 55. Section 357D.11, Code 2023, is amended to read as
20follows:
21357D.11 Bonds in anticipation of revenue.
22A district may anticipate the collection of taxes by the
23levy authorized in this chapter, and to carry out the purposes
24of this chapter may issue bonds payable in not more than ten
25equal installments with the rate of interest not exceeding
26that permitted by chapter 74A. An indebtedness shall not be
27incurred under this chapter until authorized by an election.
28The election shall be held and notice given in the same manner
29as provided in section 357D.8, and the same sixty percent vote
30shall be necessary to authorize indebtedness. Both Subject to
31section 39.2, subsection 4, both propositions may be submitted
32to the voters at the same election.
33 Sec. 56. Section 357E.11, Code 2023, is amended to read as
34follows:
35357E.11 Bonds in anticipation of revenue.
-26- 1A district, other than a combined district, may anticipate
2the collection of taxes by the levy authorized in this chapter,
3and to carry out the purposes of this chapter may issue bonds
4payable in not more than twenty equal installments with the
5rate of interest not exceeding that permitted by chapter 74A.
6An indebtedness shall not be incurred under this section
7until authorized by an election. The election shall be held
8and notice given in the same manner as provided in section
9357E.8, and the same majority vote is necessary to authorize
10indebtedness. Both Subject to section 39.2, subsection 4,
11both propositions may be submitted to the voters at the same
12election.
13 Sec. 57. Section 357E.11A, subsection 3, Code 2023, is
14amended to read as follows:
153. Except for the issuance of refunding bonds, an
16indebtedness shall not be incurred under this section until
17authorized by an election. The election shall be held and
18notice given in the same manner as provided in section 357E.8,
19except that a proposition to authorize indebtedness is
20approved if sixty percent of those voting on the proposition
21vote in favor of the proposition. A Subject to section
2239.2, subsection 4, a proposition for the authorization
23of indebtedness may be submitted to the voters at the same
24election as the election under section 357E.8.
25 Sec. 58. Section 357F.11, Code 2023, is amended to read as
26follows:
27357F.11 Bonds in anticipation of revenue.
28A district may anticipate the collection of taxes authorized
29in this chapter, and to carry out the purposes of this chapter
30may issue bonds payable in not more than ten equal installments
31with the rate of interest not exceeding that permitted by
32chapter 74A. An indebtedness shall not be incurred under this
33chapter until authorized by an election. The election shall
34be held and notice given in the same manner as provided in
35section 357F.8, and a sixty percent vote shall be necessary
-27-1to authorize indebtedness. Both Subject to section 39.2,
2subsection 4, both propositions may be submitted to the voters
3at the same election.
4 Sec. 59. Section 357G.11, Code 2023, is amended to read as
5follows:
6357G.11 Bonds in anticipation of revenue.
7A district may anticipate the collection of taxes authorized
8in this chapter, and to carry out the purposes of this chapter
9may issue bonds payable in not more than ten equal installments
10with the rate of interest not exceeding that permitted by
11chapter 74A. An indebtedness shall not be incurred under this
12chapter until authorized by an election. The election shall
13be held and notice given in the same manner as provided in
14section 357G.8, and a sixty percent vote shall be necessary
15to authorize indebtedness. Both Subject to section 39.2,
16subsection 4, both propositions may be submitted to the voters
17at the same election.
18 Sec. 60. Section 357I.12, Code 2023, is amended to read as
19follows:
20357I.12 Bonds in anticipation of revenue.
21A district may anticipate the collection of taxes by the
22levy authorized in this chapter, and to carry out the purposes
23of this chapter may issue bonds payable in not more than ten
24equal installments with the rate of interest not exceeding
25that permitted by chapter 74A. An indebtedness shall not be
26incurred under this chapter until authorized by an election.
27The election shall be held and notice given in the same manner
28as provided in section 357I.8, and the same sixty percent vote
29shall be necessary to authorize indebtedness. Both Subject to
30section 39.2, subsection 4, both propositions may be submitted
31to the voters at the same election.
32 Sec. 61. Section 384.26, subsections 2 and 3, Code 2023, are
33amended to read as follows:
342. Before the council may institute proceedings for the
35issuance of bonds for a general corporate purpose, it shall
-28-1call a special city election to vote upon the question of
2issuing the bonds. At the election the proposition must be
3submitted in the following form:
4Shall the ............ (insert the name of the city) issue
5its bonds in an amount not exceeding the amount of $.... for
6the purpose of ..........?
73. a. All elections held pursuant to this section shall
8be held on the date specified in section 39.2, subsection 4,
9paragraph “d”.
10b. Notice of the election must be given by publication
11as required by section 49.53 in a newspaper of general
12circulation in the city. At the election the ballot used for
13the submission of the proposition must be in substantially the
14form for submitting special questions at general elections.
15 Sec. 62. Section 394.2, subsection 1, Code 2023, is amended
16to read as follows:
171. It shall not be necessary to submit to the voters the
18proposition of issuing bonds for refunding purposes, but prior
19to the issuance of bonds for other purposes the council shall
20submit to the voters of the city at a general election or a
21regular city election on the date specified in section 39.2,
22subsection 4, paragraph “d”, the proposition of issuing the
23bonds. Notice of the election on the proposition of issuing
24bonds shall be published as required by section 49.53. The
25notice shall also state whether or not an admission fee is to
26be charged by the zoo or zoological gardens.
27 Sec. 63. Section 423F.4, subsection 2, paragraph b, Code
282023, is amended to read as follows:
29b. For bonds subject to the requirements of paragraph
30“a”, if at any time prior to the fifteenth day following the
31hearing, the secretary of the board of directors receives a
32petition containing the required number of signatures and
33asking that the question of the issuance of such bonds be
34submitted to the voters of the school district, the board shall
35either rescind its adoption of the resolution or direct the
-29-1county commissioner of elections to submit the question to the
2registered voters of the school district at an election held on
3a the date specified in section 39.2, subsection 4, paragraph
4“c” “d”. The petition must be signed by eligible electors equal
5in number to not less than one hundred or thirty percent of
6the number of voters at the last preceding election of school
7officials under section 277.1, whichever is greater. If the
8board submits the question at an election and a majority of
9those voting on the question favors issuance of the bonds, the
10board shall be authorized to issue the bonds.
11 Sec. 64. IMPLEMENTATION OF ACT. Section 25B.2, subsection
123, shall not apply to this division of this Act.
13 Sec. 65. APPLICABILITY. This division of this Act applies
14July 1, 2023, for elections on propositions relating to the
15issuing of bonds or other indebtedness occurring on or after
16that date.
md/jh/md
2district funding provisions, property tax calculation
3provisions, local government budgeting and bonding
4procedures, making transfers, and including effective date
5and applicability provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2School Foundation PROPERTY Tax
3 Section 1. Section 8.57E, subsection 2, Code 2023, is
4amended by adding the following new paragraph:
5 NEW PARAGRAPH. c. For the fiscal year beginning July 1,
62023, and each fiscal year thereafter, there is transferred
7from the taxpayer relief fund to the general fund of the state
8the lesser of the balance of the taxpayer relief fund and an
9amount equal to the quotient of the assessed value of all
10taxable property in the state subject to the property tax levy
11under section 257.3 divided by one thousand dollars, to be
12used for the payment of increased foundation aid under section
13257.16 resulting from the reduction of the property tax levy
14rate under section 257.3 in this Act.
15 Sec. 2. Section 257.3, subsection 1, paragraph a, Code 2023,
16is amended to read as follows:
17a. Except as provided in subsections 2 and 3, a school
18district shall cause to be levied each year, for the school
19general fund, a foundation property tax equal to five four
20 dollars and forty cents per thousand dollars of assessed
21valuation on all taxable property in the district. The county
22auditor shall spread the foundation levy over all taxable
23property in the district.
24 Sec. 3. Section 257.3, subsection 2, paragraphs a and b,
25Code 2023, are amended to read as follows:
26a. Notwithstanding subsection 1, a reorganized school
27district shall cause a foundation property tax of four three
28 dollars and forty cents per thousand dollars of assessed
29valuation to be levied on all taxable property which, in the
30year preceding a reorganization, was within a school district
31affected by the reorganization as defined in section 275.1,
32or in the year preceding a dissolution was a part of a school
33district that dissolved if the dissolution proposal has
34been approved by the director of the department of education
35pursuant to section 275.55.
-1- 1b. In succeeding school years, the foundation property tax
2levy on that portion shall be increased to the rate of four
3 three dollars and ninety cents per thousand dollars of assessed
4valuation the first succeeding year, five four dollars and
5fifteen cents per thousand dollars of assessed valuation the
6second succeeding year, and five four dollars and forty cents
7per thousand dollars of assessed valuation the third succeeding
8year and each year thereafter.
9 Sec. 4. Section 425A.3, subsection 1, Code 2023, is amended
10to read as follows:
111. The family farm tax credit fund shall be apportioned
12each year in the manner provided in this chapter so as to give
13a credit against the tax on each eligible tract of agricultural
14land within the several school districts of the state in which
15the levy for the general school fund exceeds five dollars and
16forty cents per thousand dollars of assessed value the levy
17rate under section 257.3, subsection 1, paragraph “a”. The
18amount of the credit on each eligible tract of agricultural
19land shall be the amount the tax levied for the general school
20fund exceeds the amount of tax which would be levied on each
21eligible tract of agricultural land were the levy for the
22general school fund five dollars and forty cents per thousand
23dollars of assessed value the levy rate under section 257.3,
24subsection 1, paragraph “a”, for the previous year. However,
25in the case of a deficiency in the family farm tax credit fund
26to pay the credits in full, the credit on each eligible tract
27of agricultural land in the state shall be proportionate and
28applied as provided in this chapter.
29 Sec. 5. Section 425A.5, Code 2023, is amended to read as
30follows:
31425A.5 Computation by county auditor.
32The family farm tax credit allowed each year shall be
33computed as follows: On or before April 1, the county auditor
34shall list by school districts all tracts of agricultural
35land which are entitled to credit, the taxable value for the
-2-1previous year, the budget from each school district for the
2previous year, and the tax rate determined for the general
3fund of the school district in the manner prescribed in
4section 444.3 for the previous year, and if the tax rate is in
5excess of five dollars and forty cents per thousand dollars of
6assessed value the levy rate under section 257.3, subsection
71, paragraph “a”, the auditor shall multiply the tax levy which
8is in excess of five dollars and forty cents per thousand
9dollars of assessed value the levy rate under section 257.3,
10subsection 1, paragraph “a”, by the total taxable value of the
11agricultural land entitled to credit in the school district,
12and on or before April 1, certify the total amount of credit
13and the total number of acres entitled to the credit to the
14department of revenue.
15 Sec. 6. Section 426.3, Code 2023, is amended to read as
16follows:
17426.3 Where credit given.
18The agricultural land credit fund shall be apportioned each
19year in the manner hereinafter provided so as to give a credit
20against the tax on each tract of agricultural lands within the
21several school districts of the state in which the levy for
22the general school fund exceeds five dollars and forty cents
23per thousand dollars of assessed value the levy rate under
24section 257.3, subsection 1, paragraph “a”; the amount of such
25credit on each tract of such lands shall be the amount the tax
26levied for the general school fund exceeds the amount of tax
27which would be levied on said tract of such lands were the
28levy for the general school fund five dollars and forty cents
29per thousand dollars of assessed value the levy rate under
30section 257.3, subsection 1, paragraph “a”, for the previous
31year, except in the case of a deficiency in the agricultural
32land credit fund to pay said credits in full, in which case the
33credit on each eligible tract of such lands in the state shall
34be proportionate and shall be applied as hereinafter provided.
35 Sec. 7. Section 426.6, subsection 1, Code 2023, is amended
-3-1to read as follows:
21. The agricultural land tax credit allowed each year
3shall be computed as follows: On or before April 1, the
4county auditor shall list by school districts all tracts of
5agricultural lands which are entitled to credit, together with
6the taxable value for the previous year, together with the
7budget from each school district for the previous year, and the
8tax rate determined for the general fund of the district in
9the manner prescribed in section 444.3 for the previous year,
10and if such tax rate is in excess of five dollars and forty
11cents per thousand dollars of assessed value the levy rate
12under section 257.3, subsection 1, paragraph “a”, the auditor
13shall multiply the tax levy which is in excess of five dollars
14and forty cents per thousand dollars of assessed value the
15levy rate under section 257.3, subsection 1, paragraph “a”, by
16the total taxable value of the agricultural lands entitled to
17credit in the district, and on or before April 1, certify the
18amount to the department of revenue.
19 Sec. 8. ADJUSTMENT OF CALCULATIONS. For property tax
20credits under chapters 425A and 426 for property taxes due and
21payable in the fiscal year beginning July 1, 2023, the tax rate
22determined for the general fund of the school district in the
23manner prescribed in section 444.3 for the previous year shall
24be determined using the applicable property tax levy rate under
25section 257.3, as amended in this division of this Act.
26 Sec. 9. EFFECTIVE DATE. This division of this Act, being
27deemed of immediate importance, takes effect upon enactment.
28 Sec. 10. APPLICABILITY. The following apply July 1, 2023,
29for school budget years beginning on or after that date:
301. The section of this division of this Act amending section
31257.3, subsection 1, paragraph “a”.
322. The section of this division of this Act amending section
33257.3, subsection 2, paragraphs “a” and “b”.
34DIVISION II
35PROPERTY TAX LIMITATION
-4-1 Sec. 11. Section 443.2, subsection 1, Code 2023, is amended
2to read as follows:
31. Before the first day of July in each year, the county
4auditor shall transcribe the assessments of the townships and
5cities into a book or record, to be known as the tax list,
6properly ruled and headed, with separate columns, in which
7shall be entered the names of the taxpayers, descriptions of
8lands, number of acres and value, numbers of city lots and
9value, and each description of tax, with a column for polls and
10one for payments, and shall complete it by entering the amount
11due on each installment, separately, and carrying out the total
12of both installments. The total of all columns of each page of
13each book or other record shall balance with the tax totals.
14After computing the amount of tax due and payable on each
15property, the county auditor shall round the total amount of
16tax due and payable on the property to the nearest even whole
17dollar and, if applicable, reduce the amounts due and payable
18as required under section 444.25.
19 Sec. 12. Section 444.1, Code 2023, is amended to read as
20follows:
21444.1 Basis for amount of tax.
22In all taxing districts in the state, including townships,
23school districts, cities, and counties, when by law then
24existing the people are authorized to determine by vote, or
25officers are authorized to estimate or determine, a rate of
26taxation required for any public purpose, such rate shall in
27all cases be estimated and based upon the adjusted taxable
28valuation of such taxing district for the preceding calendar
29year and subject to the limitation of section 444.25.
30 Sec. 13. Section 444.2, Code 2023, is amended to read as
31follows:
32444.2 Amounts certified in dollars.
33When an authorized tax rate within a taxing district,
34including townships, school districts, cities, and counties,
35has been thus determined as provided by law, the officer or
-5-1officers charged with the duty of certifying the authorized
2rate to the county auditor or board of supervisors shall,
3before certifying the rate, compute upon the adjusted taxable
4valuation of the taxing district for the preceding fiscal year,
5the amount of tax the rate will raise, stated in dollars,
6subject to the limitation of section 444.25, and shall certify
7the computed amount in dollars and not by rate, to the county
8auditor and board of supervisors.
9 Sec. 14. Section 444.3, Code 2023, is amended to read as
10follows:
11444.3 Computation of rate.
12When the valuations for the several taxing districts shall
13have been adjusted by the several boards for the current
14year, the county auditor shall thereupon apply such a rate,
15not exceeding the rate authorized by law, as will raise the
16amount required for such taxing district, and no larger amount,
17subject to the limitation under section 444.25. For purposes
18of computing the rate under this section, the adjusted taxable
19valuation of the property of a taxing district does not include
20the valuation of property of a railway corporation or its
21trustee which corporation has been declared bankrupt or is in
22bankruptcy proceedings. Nothing in the preceding sentence
23exempts the property of such railway corporation or its trustee
24from taxation and the rate computed under this section shall
25be levied on the taxable property of such railway corporation
26or its trustee.
27 Sec. 15. Section 444.22, Code 2023, is amended to read as
28follows:
29444.22 Annual levy.
30In each year the director of revenue shall fix the rate in
31percentage to be levied upon the assessed valuation of the
32taxable property of the state necessary to raise the amount for
33general state purposes as shall be designated by the department
34of management, subject to the limitation under section 444.25.
35 Sec. 16. NEW SECTION. 444.25 Property tax amount limitation
-6-1— reduction.
21. For purposes of this section:
3a. “Base year” means the assessment year preceding the
4assessment year used to calculate property taxes due and
5payable in the applicable fiscal year.
6b. “Local taxing authority” means a city, county, community
7college, school district, or other governmental subdivision
8located in this state and authorized to certify a levy on
9property located within such authority.
10c. “New construction” means buildings, structures, or
11improvements constructed or relocated on or made to the parcel.
12d. “Parcel” means each separate item shown on the tax list,
13manufactured or mobile home tax list, schedule of assessment,
14or schedule of rate or charge.
15e. “Property taxes” means annual ad valorem taxes imposed
16on the parcel which are collectable by the county treasurer
17following application of all applicable exemptions and credits,
18and shall not include special assessments, amounts levied under
19chapter 468, or taxes under chapter 435. “Property taxes” also
20do not include taxes levied as the result of a property tax
21levy approved at election or that portion of any property tax
22levy imposed that is for the payment of principal and interest
23on bonds or other indebtedness the issuance of which was
24approved at election, including refunding bonds issued for the
25repayment of bonds that were approved at election.
26f. “Qualified parcel” means a parcel that is not located
27in an urban renewal area under chapter 403 or an urban
28revitalization area under chapter 404, is not wind energy
29conversion property as defined in section 427B.26, and for
30which none of the following apply:
31(1) The parcel changed ownership during the base year.
32(2) New construction occurred on the parcel during the base
33year.
34(3) The parcel’s assessment for the base year was a partial
35assessment as the result of incomplete new construction or
-7-1improvements.
2(4) The parcel was omitted from assessment or fraudulently
3withheld from assessment in the base year.
4(5) The parcel’s property taxes were suspended or abated
5under sections 427.8, 427.9, and 427.10.
6(6) The parcel’s classification is different from the base
7year.
82. a. For property taxes due and payable in fiscal years
9beginning on or after July 1, 2024, if the amount of property
10taxes otherwise calculated to be due and payable on a qualified
11parcel of residential property or agricultural property
12exceeds one hundred three percent of the actual amount of
13property taxes due and payable on the parcel in the immediately
14preceding fiscal year, such amount shall be reduced as provided
15in subsection 3. If, however, improvements or renovations, not
16amounting to new construction, occurs on the property during
17the base year, the threshold amount of property taxes shall be
18one hundred three percent plus the percentage of the parcel’s
19taxable value attributable to the improvements or renovations.
20Improvements or renovations do not include normal and necessary
21repairs to an existing building or improvement, not amounting
22to structural replacements or modifications.
23b. For property taxes due and payable in fiscal years
24beginning on or after July 1, 2024, if the amount of property
25taxes otherwise calculated to be due and payable on a qualified
26parcel of commercial property or industrial property exceeds
27one hundred eight percent of the actual amount of property
28taxes due and payable on the parcel in the immediately
29preceding fiscal year, such amount shall be reduced as provided
30in subsection 3. If, however, improvements or renovations, not
31amounting to new construction, occurs on the property during
32the base year, the threshold amount of property taxes shall be
33one hundred eight percent plus the percentage of the parcel’s
34taxable value attributable to the improvements or renovations.
35Improvements or renovations do not include normal and necessary
-8-1repairs to an existing building or improvement, not amounting
2to structural replacements or modifications.
3c. Property taxes levied by a political subdivision that did
4not exist for the immediately preceding fiscal year shall not
5be included in the calculation of the property tax to be due
6and payable for the fiscal year and shall not be reduced under
7subsection 3.
83. a. If the total amount of property taxes due and
9payable on the parcel exceeds the applicable threshold for
10the parcel under subsection 2, the amount of property taxes
11due and payable to each taxing authority that certified for
12levy property taxes on the parcel in excess of the applicable
13threshold percentage of such amount levied by that taxing
14authority on the parcel in the immediately preceding fiscal
15year shall be reduced by the amount by which the parcel’s
16total amount of property taxes due and payable for all taxing
17authorities exceeds the applicable threshold for the parcel
18under subsection 2.
19b. The amount of the reduction shall be proportionately
20applied among the various levies for property taxes, or
21portions thereof, of those taxing authorities that certified
22for levy property taxes on the parcel in excess of the
23applicable threshold percentage of such amount levied by that
24taxing authority on the parcel in the immediately preceding
25fiscal year.
26c. The reductions shall be made by the county auditor prior
27to delivery of the tax list prescribed in chapter 443 to ensure
28accurate statement of taxes under section 445.5.
294. The director of the department of revenue shall adopt
30rules pursuant to chapter 17A to administer and interpret this
31section.
32 Sec. 17. Section 445.5, subsection 1, paragraphs e, f, g,
33and h, Code 2023, are amended to read as follows:
34e. The complete name of all taxing authorities receiving a
35tax distribution, the amount of the distribution, the amount of
-9-1any reduction resulting from section 444.25, and the percentage
2distribution for each named authority, listed from the highest
3to the lowest distribution percentage.
4f. The consolidated levy rate for one thousand dollars
5of taxable valuation multiplied by the taxable valuation to
6produce the gross taxes levied before application of credits
7against levied taxes for the previous and current fiscal years
8and before any reduction resulting from section 444.25.
9g. The itemized credits against levied taxes deducted from
10the gross taxes levied in order to produce the net taxes owed
11for the previous and current fiscal years and the amount of any
12reductions under section 444.25 for previous and current fiscal
13years.
14h. The total amount of taxes levied by each taxing authority
15in the previous fiscal year and the current fiscal year and the
16difference between the two amounts, expressed as a percentage
17increase or decrease, and the amount of any reduction to a
18taxing authority resulting from section 444.25.
19 Sec. 18. Section 445.57, subsection 1, Code 2023, is amended
20to read as follows:
211. On or before the tenth day of each month, the county
22treasurer shall apportion all taxes collected during the
23preceding month, except partial payment amounts collected
24pursuant to section 445.36A, subsection 1, partial payments
25collected and not yet designated by the county treasurer
26for apportionment pursuant to section 445.36A, subsection
272, partial payments collected pursuant to section 435.24,
28subsection 6, paragraph “a”, and partial payments collected and
29not yet designated by the county treasurer for apportionment
30pursuant to section 435.24, subsection 6, paragraph “b”, among
31the several funds to which they belong according to the amount
32levied for each fund, as adjusted under section 444.25, if
33applicable, and shall apportion the interest, fees, and costs
34on the taxes to the general fund, and shall enter those amounts
35upon the treasurer’s cash account, and report the amounts to
-10-1the county auditor.
2 Sec. 19. IMPLEMENTATION OF ACT.
31. Section 25B.2, subsection 3, shall not apply to this
4division of this Act.
52. Section 25B.7 shall not apply to this division of this
6Act.
7 Sec. 20. APPLICABILITY. This division of this Act applies
8to property taxes due and payable in fiscal years beginning on
9or after July 1, 2024.
10DIVISION III
11LOCAL GOVERNMENT BUDGETS
12 Sec. 21. Section 24.9, subsection 1, Code 2023, is amended
13to read as follows:
141. a. Each municipality shall file with the secretary or
15clerk thereof the estimates required to be made in sections
1624.3 through 24.8, at least twenty days before the date fixed
17by law for certifying the same to the levying board and shall
18forthwith fix a date for a hearing on the estimates, and
19shall publish such estimates and any annual levies previously
20authorized as provided in section 76.2, with a notice of the
21time when and the place where such hearing shall be held not
22less than ten nor more than twenty days before the hearing.
23Provided that in municipalities of less than two hundred
24population such estimates and the notice of hearing shall
25be posted in three public places in the district in lieu of
26publication. For any other municipality such publication
27shall be in a newspaper published in the municipality, if any,
28if not, then in a newspaper of general circulation in the
29municipality. Except for a municipality with property tax
30revenues for the immediately preceding fiscal year of less
31than five thousand dollars, the notice shall also include the
32information required under paragraph “c”, subparagraph (2),
33subparagraph divisions (a) through (d), which shall be adopted
34by resolution of the municipality.
35b. The department of management shall prescribe the form for
-11-1public hearing notices for use by municipalities and notices
2required to be sent under paragraph “c”.
3c. (1) For purposes of this paragraph:
4(a) “Budget year” is the fiscal year beginning during the
5calendar year in which a budget is certified.
6(b) “Current fiscal year” is the fiscal year ending during
7the calendar year in which a budget for the budget year is
8certified.
9(c) “Effective property tax rate” means the property tax
10rate per one thousand dollars of assessed value and is equal to
11one thousand multiplied by the quotient of the current fiscal
12year’s actual property tax dollars certified for levy divided
13by the total assessed value used to calculate taxes for the
14budget year.
15(2) In addition to the notices published and posted
16under paragraph “a”, the municipality shall direct the
17county treasurer to send to each owner or taxpayer within
18the municipality by regular mail, on or before the date of
19publication under paragraph “a”, and pursuant to section
20331.553, subsection 9, an individual notice containing all of
21the following:
22(a) The sum of the current fiscal year’s actual property
23taxes certified for levy by the municipality and the
24municipality’s current fiscal year’s combined property tax rate
25for such amount.
26(b) The effective property tax rate calculated using the sum
27of the current fiscal year’s actual property taxes certified by
28the municipality.
29(c) The sum of the proposed property tax dollars to be
30certified for levy by the municipality for the budget year and
31the proposed combined property tax rate for such amount.
32(d) If the proposed property tax dollars specified under
33subparagraph division (c) exceeds the current fiscal year’s
34actual property tax dollars certified for levy specified in
35subparagraph division (a), a statement of the major reasons for
-12-1the increase.
2(e) The assessed value of the owner’s or taxpayer’s property
3used to calculate property taxes for the current fiscal year.
4(f) The assessed value of the owner’s or taxpayer’s property
5used to calculate property taxes for the budget year.
6(g) The amount of property taxes due on the owner’s or
7taxpayer’s property for the current fiscal year for the
8municipality.
9(h) The proposed amount of property taxes to be levied
10against the owner’s or taxpayer’s property for the budget year
11for the municipality.
12(3) This paragraph does not apply to municipalities with
13property tax revenues for the immediately preceding fiscal year
14of less than five thousand dollars.
15 Sec. 22. Section 24.17, subsection 1, Code 2023, is amended
16to read as follows:
171. The local budgets of the various political subdivisions
18shall be certified by the chairperson of the certifying
19board or levying board, as the case may be, in duplicate to
20the county auditor not later than March April 15 of each
21year on forms, and pursuant to instructions, prescribed by
22the department of management. However, if the political
23subdivision is a county or a city, its budget shall be
24certified not later than March 31 of each year, and if the
25political subdivision is a school district, as defined in
26section 257.2, its budget shall be certified not later than
27April 15 of each year.
28 Sec. 23. Section 24.27, subsection 1, Code 2023, is amended
29to read as follows:
301. Not later than March 25, or April 10 for a county or a
31city, or April 25 if the municipality is a school district, a
32number of persons in any municipality political subdivision
33 equal to one-fourth of one percent of those voting for the
34office of governor, at the last general election in the
35municipality political subdivision, but the number shall not be
-13-1less than ten, and the number need not be more than one hundred
2persons, who are affected by any proposed budget, expenditure
3or tax levy, or by any item thereof, may appeal from any
4decision of the certifying board or the levying board by filing
5with the county auditor of the county in which the municipal
6corporation political subdivision is located, a written protest
7setting forth their objections to the budget, expenditure or
8tax levy, or to one or more items thereof, and the grounds for
9their objections. If a budget is certified after March 15,
10or March 31 in the case of a county or a city, or April 15 in
11the case of a school district, all appeal time limits shall be
12extended to correspond to allowances for a timely filing.
13 Sec. 24. Section 24.28, Code 2023, is amended to read as
14follows:
1524.28 Hearing on protest.
16The state board, within a reasonable time, shall fix a date
17for an initial hearing on the protest and may designate a
18deputy to hold the hearing, which shall be held in the county
19or in one of the counties in which the municipality political
20subdivision is located. Notice of the time and place of the
21hearing shall be given by certified mail to the appropriate
22officials of the local government and to the first ten property
23owners whose names appear upon the protest, at least five
24days before the date fixed for the hearing. At all hearings,
25the burden shall be upon the objectors with reference to any
26proposed item in the budget which was included in the budget
27of the previous year and which the objectors propose should
28be reduced or excluded; but the burden shall be upon the
29certifying board or the levying board, as the case may be,
30to show that any new item in the budget, or any increase in
31any item in the budget, is necessary, reasonable, and in the
32interest of the public welfare.
33 Sec. 25. Section 24.48, subsection 4, Code 2023, is amended
34to read as follows:
354. The city finance committee shall have officially
-14-1notified any city of its approval, modification or rejection
2of the city’s appeal of the decision of the director of the
3department of management regarding a city’s request for a
4suspension of the statutory property tax levy limitation prior
5to thirty-five days before March 31 April 15.
6 Sec. 26. Section 331.422, unnumbered paragraph 1, Code
72023, is amended to read as follows:
8Subject to this section and sections 331.423 through 331.426
9or as otherwise provided by state law, the board of each county
10shall certify property taxes annually at its March April
11 session to be levied for county purposes as follows:
12 Sec. 27. Section 331.433A, subsection 4, paragraph b, Code
132023, is amended to read as follows:
14b. Proof of publication shall be filed with and preserved
15by the auditor. The department of management shall prescribe
16the form for the public hearing notice for use by counties, the
17form for individual notices provided under paragraph “c”, and
18the form for the resolution to be adopted by the board under
19subsection 5.
20 Sec. 28. Section 331.433A, subsection 4, Code 2023, is
21amended by adding the following new paragraph:
22 NEW PARAGRAPH. c. In addition to the notices published
23and posted under paragraph “a”, the county shall direct the
24county treasurer to send to each owner or taxpayer by regular
25mail, on or before the date of publication under paragraph “a”,
26and pursuant to section 331.553, subsection 9, an individual
27notice containing the information required under paragraph “a”,
28subparagraphs (1) through (4), and all of the following:
29(1) The assessed value of the owner’s or taxpayer’s property
30used to calculate property taxes for the current fiscal year.
31(2) The assessed value of the owner’s or taxpayer’s property
32used to calculate property taxes for the budget year.
33(3) The amount of property taxes due on the owner’s or
34taxpayer’s property for the current fiscal year for general
35county services and rural county services under the levies
-15-1specified in subsection 2, paragraphs “a” and “b”.
2(4) The proposed amount of property taxes to be levied
3against the owner’s or taxpayer’s property for the budget year
4for general county services and rural county services under the
5levies specified in subsection 2, paragraphs “a” and “b”.
6 Sec. 29. Section 331.433A, subsection 5, paragraph a, Code
72023, is amended to read as follows:
8a. At the public hearing, the board shall receive oral
9or written objections from any resident or property owner
10of the county. After all objections have been received and
11considered, the board may decrease, but not increase, the
12proposed maximum property tax dollar amounts for inclusion in
13the resolution and shall adopt the resolution and file the
14resolution with the auditor as required under section 331.434,
15subsection 3. In addition to the proposed maximum property tax
16dollar amounts for general county services and rural county
17services, the resolution shall also include the effective
18property tax rate for general county services, the effective
19property tax rate for rural county services, the estimated
20property tax rate for the proposed general county services
21maximum property tax dollar amount, and the estimated property
22tax rate for the proposed rural county services maximum
23property tax dollar amount.
24 Sec. 30. Section 331.434, subsection 7, Code 2023, is
25amended to read as follows:
267. Taxes levied by a county whose budget is certified after
27March 31 April 15 shall be limited to the prior year’s budget
28amount. However, this penalty may be waived by the director
29of the department of management if the county demonstrates
30that the March 31 deadline was missed because of circumstances
31beyond the control of the county.
32 Sec. 31. Section 331.436, Code 2023, is amended to read as
33follows:
34331.436 Protest.
35Protests to the adopted budget must be made in accordance
-16-1with 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. 32. Section 331.553, Code 2023, is amended by adding
7the following new subsection:
8 NEW SUBSECTION. 9. Consolidate all required individual
9notices required under section 24.9, subsection 1, paragraph
10“c”, subparagraph (2), section 331.433A, subsection 4,
11paragraph “c”, section 359.49, subsection 4, paragraph “b”,
12subparagraph (2), and section 384.15A, subsection 4, paragraph
13“c”, so that all applicable notices appear on a single
14individual notice for each owner or taxpayer.
15 Sec. 33. Section 358.18, subsection 2, Code 2023, is amended
16to read as follows:
172. All taxes thus levied by the board shall be certified by
18the clerk on or before March 1 April 15 to the county auditor
19of each county wherein any of the property included within
20the territorial limits of the sanitary district is located,
21and shall be placed upon the tax list for the current fiscal
22year by the auditor or auditors. The county treasurer, or
23treasurers, of more than one county, shall collect all taxes so
24levied in the same manner as other taxes, and when delinquent
25the taxes shall draw the same interest. All taxes levied and
26collected shall be paid over by the officer collecting the
27taxes to the treasurer of the sanitary district.
28 Sec. 34. Section 358C.14, subsection 2, Code 2023, is
29amended to read as follows:
302. All taxes thus levied by the board shall be certified by
31the clerk on or before March 1 April 15 to the county auditor
32of each county in which any of the property included within
33the territorial limits of the district is located, and shall
34be placed upon the tax list for the current fiscal year by the
35auditor. The county treasurer of more than one county shall
-17-1collect all taxes so levied in the same manner as other taxes,
2and when delinquent the taxes shall draw the same interest.
3All taxes levied and collected shall be paid over by the
4officer collecting the taxes to the treasurer of the district.
5 Sec. 35. Section 359.49, subsection 4, Code 2023, is amended
6to read as follows:
74. a. The board of trustees shall transmit a copy of the
8proposed budget and a notice of the meeting set as required by
9subsection 5 to the county auditor for posting. The county
10auditor shall post the notice and the proposed budget in an
11area of the courthouse where notices to the public are commonly
12posted. The notice shall also include the information required
13under paragraph “b”, subparagraph (2), subparagraph divisions
14(a) through (d), which shall be adopted by resolution of the
15board of trustees.
16b. (1) For purposes of this paragraph:
17(a) “Budget year” is the fiscal year beginning during the
18calendar year in which a budget is certified.
19(b) “Current fiscal year” is the fiscal year ending during
20the calendar year in which a budget for the budget year is
21certified.
22(c) “Effective property tax rate” means the property tax
23rate per one thousand dollars of assessed value and is equal to
24one thousand multiplied by the quotient of the current fiscal
25year’s actual property tax dollars certified for levy divided
26by the total assessed value used to calculate taxes for the
27budget year.
28(2) In addition to the notices published and posted under
29paragraph “a”, the township shall direct the county treasurer to
30send to each owner or taxpayer within the township by regular
31mail, on or before the date of posting under paragraph “a”, and
32pursuant to section 331.553, subsection 9, an individual notice
33containing all of the following:
34(a) The sum of the current fiscal year’s actual property
35taxes certified for levy by the township and the township’s
-18-1current fiscal year’s combined property tax rate for such
2amount.
3(b) The effective property tax rate calculated using the sum
4of the current fiscal year’s actual property taxes certified by
5the township.
6(c) The sum of the proposed property tax dollars to be
7certified for levy by the township for the budget year and the
8proposed combined property tax rate for such amount.
9(d) If the proposed property tax dollars specified under
10subparagraph division (c) exceed the current fiscal year’s
11actual property tax dollars certified for levy specified in
12subparagraph division (a), a statement of the major reasons for
13the increase.
14(e) The assessed value of the owner’s or taxpayer’s property
15used to calculate property taxes for the current fiscal year.
16(f) The assessed value of the owner’s or taxpayer’s property
17used to calculate property taxes for the budget year.
18(g) The amount of property taxes due on the owner’s or
19taxpayer’s property for the current fiscal year for the
20township.
21(h) The proposed amount of property taxes to be levied
22against the owner’s or taxpayer’s property for the budget year
23for the township.
24 Sec. 36. Section 359.49, subsections 7 and 9, Code 2023, are
25amended to read as follows:
267. After the meeting on the proposed budget, the board of
27trustees shall adopt by resolution a budget for at least the
28next fiscal year, and the clerk shall certify the necessary
29tax levy for the next fiscal year to the county auditor and
30the county board of supervisors by March April 15. The tax
31levy certified may be less than but shall not be more than
32the amount estimated in the proposed budget submitted at the
33meeting. Two copies each of the detailed budget as adopted and
34of the certified tax levy must be transmitted to the county
35auditor by March April 15.
-19- 19. Taxes from a township levy shall be collected but not
2disbursed by the county to a township until copies of the
3township budget are transmitted to the county auditor as
4required in subsection 7. If a township fails to certify
5property taxes by March April 15, the amount of taxes collected
6by the county for the township shall be the amount collected
7for the township in the previous fiscal year to the extent that
8it does not exceed the applicable levy rate limits in this
9chapter. However, that amount may not exceed the amount the
10township could collect based on property assessments for the
11fiscal year for which the township failed to certify property
12taxes.
13 Sec. 37. Section 384.2, subsection 1, Code 2023, is amended
14to read as follows:
151. Except as otherwise provided for special charter cities,
16a city’s fiscal year shall be as provided in section 24.2,
17subsection 3. All city property taxes must be certified by
18a city to the county auditor on or before March 31 April
1915 of each year, unless otherwise provided by state law.
20However, municipal utilities, if not supported by taxation
21or the proceeds of outstanding indebtedness payable from
22taxes may, with the council’s consent, choose to operate on a
23fiscal year which is the calendar year. The receipt by the
24utility of payments from other governmental funds for public
25fire protection, street lighting, or other public use of the
26utility’s services shall not be deemed support by taxation.
27After notice and hearing in the same manner as required for the
28city’s regular budget under section 384.16, the utility budget
29must be approved by resolution of the council not later than
30twenty days prior to the beginning of the calendar year for
31which the budget applies.
32 Sec. 38. Section 384.15A, subsection 4, paragraph b, Code
332023, is amended to read as follows:
34b. Proof of publication shall be filed with and preserved
35by the county auditor. The department of management shall
-20-1prescribe the form for the public hearing notice for use
2by cities, the form for individual notices provided under
3paragraph “c”, and the form for the resolution to be adopted by
4the council under subsection 5.
5 Sec. 39. Section 384.15A, subsection 4, Code 2023, is
6amended by adding the following new paragraph:
7 NEW PARAGRAPH. c. In addition to the notices published and
8posted under paragraph “a”, the city shall direct the county
9treasurer to send to each owner or taxpayer by regular mail,
10on or before the date of publication under paragraph “a”,
11and pursuant to section 330.553, subsection 9, an individual
12notice containing the information required under paragraph “a”,
13subparagraphs (1) through (4), and all of the following:
14(1) The assessed value of the owner’s or taxpayer’s property
15used to calculate property taxes for the current fiscal year.
16(2) The assessed value of the owner’s or taxpayer’s property
17used to calculate property taxes for the budget year.
18(3) The amount of property taxes due on the owner’s or
19taxpayer’s property for the current fiscal year for the city
20under the levies specified in subsection 2.
21(4) The proposed amount of property taxes to be levied
22against the owner’s or taxpayer’s property for the budget year
23for the city under the levies specified in subsection 2.
24 Sec. 40. Section 384.15A, subsection 5, paragraph a, Code
252023, is amended to read as follows:
26a. At the public hearing, the council shall receive oral
27or written objections from any resident or property owner
28of the city. After all objections have been received and
29considered, the council may decrease, but not increase, the
30proposed maximum property tax dollar amount for inclusion in
31the resolution and shall adopt the resolution and file the
32resolution with the county auditor as required under section
33384.16, subsection 3. In addition to the proposed maximum
34property tax dollar amount, the resolution shall also include
35the effective property tax rate, and the estimated property tax
-21-1rate for the proposed maximum property tax dollar amount.
2 Sec. 41. Section 384.16, subsection 6, Code 2023, is amended
3to read as follows:
46. Taxes levied by a city whose budget is certified after
5March 31 April 15 shall be limited to the prior year’s budget
6amount. However, this penalty may be waived by the director of
7the department of management if the city demonstrates that the
8March 31 deadline was missed because of circumstances beyond
9the control of the city.
10 Sec. 42. IMPLEMENTATION. Section 25B.2, subsection 3,
11shall not apply to this division of this Act.
12 Sec. 43. APPLICABILITY. This division of this Act applies
13to county, city, township, and municipality budgets for fiscal
14years beginning on or after July 1, 2024.
15DIVISION IV
16BOND ELECTIONS
17 Sec. 44. Section 28E.16, Code 2023, is amended to read as
18follows:
1928E.16 Election for bonds.
20When bonds which require a vote of the people are to be
21issued for financing joint facilities of a county and one or
22more cities within the county, pursuant to an agreement made
23under the authority of this chapter, or pursuant to other
24provisions of law, the board of supervisors and the council of
25each city shall arrange for a single election on the question
26of issuing the bonds, but if the county and the cities are
27proposing to make separate bond issues, the ballot shall
28contain separate questions, one to be voted upon by all voters
29of the county, and one or more to be voted upon only by the
30voters of the city which is to make a separate bond issue. All
31elections on the question of issuing the bonds shall be held on
32the date specified in section 39.2, subsection 4, paragraph “d”.
33 Sec. 45. Section 39.2, subsection 4, Code 2023, is amended
34to read as follows:
354. Unless otherwise provided by law, special elections on
-22-1public measures are limited to the following dates:
2a. For Except as provided in paragraph “d”, for a county, in
3an odd-numbered year, the first Tuesday in March, the second
4Tuesday in September, or the first Tuesday after the first
5Monday in November. For a county, in an even-numbered year,
6the first Tuesday in March, the second Tuesday in September, or
7the first Tuesday after the first Monday in November.
8b. For Except as provided in paragraph “d”, for a city, in
9an odd-numbered year, the first Tuesday in March, the second
10Tuesday in September, or the first Tuesday after the first
11Monday in November. For a city, in an even-numbered year, the
12first Tuesday in March or the second Tuesday in September.
13c. For Except as provided in paragraph “d”, for a school
14district or merged area, in the odd-numbered year, the first
15Tuesday in March, the second Tuesday in September, or the first
16Tuesday after the first Monday in November. For a school
17district or merged area, in the even-numbered year, the first
18Tuesday in March, or the second Tuesday in September.
19d. For any political subdivision of this state, if the
20special election is in whole or in part for the question of
21issuing bonds or other indebtedness, the first Tuesday after
22the first Monday in November.
23 Sec. 46. NEW SECTION. 39.5 Notice of bond election.
24In addition to any other notice related to the election
25required by law to be published, posted, or provided, if the
26election is subject to section 39.2, subsection 4, paragraph
27“d”, the commissioner shall not less than ten nor more than
28twenty days before the day of each election mail to each
29registered voter of the applicable jurisdiction a notice of the
30election that includes the full text of the public measure to
31be voted upon at the election.
32 Sec. 47. Section 75.1, subsection 1, paragraph a, Code 2023,
33is amended to read as follows:
34a. When a proposition to authorize an issuance of bonds
35by a county, township, school corporation, city, or by any
-23-1local board or commission, is submitted to the electors, such
2proposition shall not be deemed carried or adopted, anything
3in the statutes to the contrary notwithstanding, unless the
4vote in favor of such authorization is equal to at least sixty
5percent of the total vote cast for and against said proposition
6at said election. All elections on such proposition shall
7be held on the date specified in section 39.2, subsection 4,
8paragraph “d”.
9 Sec. 48. Section 75.1, subsection 2, Code 2023, is amended
10by striking the subsection.
11 Sec. 49. Section 279.39, Code 2023, is amended to read as
12follows:
13279.39 School buildings.
14The board of any school corporation shall establish
15attendance centers and provide suitable buildings for each
16school in the district and may at the regular or a special
17meeting resolve to submit to the registered voters of the
18district at an election held on a date specified in section
1939.2, subsection 4, paragraph “c”, the question of voting a tax
20or authorizing the board to issue bonds, or both.
21 Sec. 50. Section 296.3, Code 2023, is amended to read as
22follows:
23296.3 Election called.
24Within ten days of receipt of a petition filed under section
25296.2, the president of the board of directors shall call a
26meeting of the board. The meeting shall be held within thirty
27days after the petition was received. At the meeting, the
28board shall call the election, fixing the time of the election,
29which may be at the time and place of holding the regular
30school election as required by section 39.2, subsection 4,
31paragraph “d”. However, if the board determines by unanimous
32vote that the proposition or propositions requested by a
33petition to be submitted at an election are grossly unrealistic
34or contrary to the needs of the school district, no election
35shall be called. If more than one petition has been received
-24-1by the time the board meets to consider the petition triggering
2the meeting, the board shall act upon the petitions in the
3order they were received at the meeting called to consider the
4initial petition. The decision of the board may be appealed to
5the state board of education as provided in chapter 290. The
6president shall notify the county commissioner of elections of
7the time of the election.
8 Sec. 51. Section 298.21, unnumbered paragraph 1, Code 2023,
9is amended to read as follows:
10The board of directors of any school corporation when
11authorized by the voters at an election held on a date
12specified in section 39.2, subsection 4, paragraph “c” “d”,
13may issue the negotiable, interest-bearing school bonds of the
14corporation for borrowing money for any or all of the following
15purposes:
16 Sec. 52. Section 331.442, subsection 3, Code 2023, is
17amended to read as follows:
183. a. All elections held pursuant to this section shall
19be held on the date specified in section 39.2, subsection 4,
20paragraph “d”.
21b. Notice of the election shall be given by publication as
22specified in section 331.305. At the election the ballot used
23for the submission of the proposition shall be in substantially
24the form for submitting special questions at general elections.
25 Sec. 53. Section 346.27, subsection 10, paragraph a, Code
262023, is amended to read as follows:
27a. After the incorporation of an authority, and before the
28sale of any issue of revenue bonds, except refunding bonds, the
29authority shall submit to the voters the question of whether
30the authority shall issue and sell revenue bonds. The ballot
31shall state the amount of the bonds and the purposes for
32which the authority is incorporated. All registered voters
33of the county shall be entitled to vote on the question. The
34question may shall be submitted at an election held on a the
35 date specified in section 39.2, subsection 4, paragraph “a” or
-25-1“b”, as applicable “d”. An affirmative vote of a majority of
2the votes cast on the question is required to authorize the
3issuance and sale of revenue bonds.
4 Sec. 54. Section 357C.10, Code 2023, is amended to read as
5follows:
6357C.10 Bonds in anticipation of revenue.
7Benefited street lighting districts may anticipate the
8collection of taxes by the levy herein provided, and to carry
9out the purposes of this chapter may issue bonds payable
10in not more than ten equal installments, with the rate of
11interest thereon not exceeding that permitted by chapter 74A.
12No indebtedness shall be incurred under this chapter until
13authorized by an election. Such election shall be held and
14notice given in the same manner as the election provided herein
15for the authorization of a tax levy, and the same sixty percent
16vote shall be necessary to authorize indebtedness. Both
17 Subject to section 39.2, subsection 4, both propositions may be
18submitted to the voters in the same election.
19 Sec. 55. Section 357D.11, Code 2023, is amended to read as
20follows:
21357D.11 Bonds in anticipation of revenue.
22A district may anticipate the collection of taxes by the
23levy authorized in this chapter, and to carry out the purposes
24of this chapter may issue bonds payable in not more than ten
25equal installments with the rate of interest not exceeding
26that permitted by chapter 74A. An indebtedness shall not be
27incurred under this chapter until authorized by an election.
28The election shall be held and notice given in the same manner
29as provided in section 357D.8, and the same sixty percent vote
30shall be necessary to authorize indebtedness. Both Subject to
31section 39.2, subsection 4, both propositions may be submitted
32to the voters at the same election.
33 Sec. 56. Section 357E.11, Code 2023, is amended to read as
34follows:
35357E.11 Bonds in anticipation of revenue.
-26- 1A district, other than a combined district, may anticipate
2the collection of taxes by the levy authorized in this chapter,
3and to carry out the purposes of this chapter may issue bonds
4payable in not more than twenty equal installments with the
5rate of interest not exceeding that permitted by chapter 74A.
6An indebtedness shall not be incurred under this section
7until authorized by an election. The election shall be held
8and notice given in the same manner as provided in section
9357E.8, and the same majority vote is necessary to authorize
10indebtedness. Both Subject to section 39.2, subsection 4,
11both propositions may be submitted to the voters at the same
12election.
13 Sec. 57. Section 357E.11A, subsection 3, Code 2023, is
14amended to read as follows:
153. Except for the issuance of refunding bonds, an
16indebtedness shall not be incurred under this section until
17authorized by an election. The election shall be held and
18notice given in the same manner as provided in section 357E.8,
19except that a proposition to authorize indebtedness is
20approved if sixty percent of those voting on the proposition
21vote in favor of the proposition. A Subject to section
2239.2, subsection 4, a proposition for the authorization
23of indebtedness may be submitted to the voters at the same
24election as the election under section 357E.8.
25 Sec. 58. Section 357F.11, Code 2023, is amended to read as
26follows:
27357F.11 Bonds in anticipation of revenue.
28A district may anticipate the collection of taxes authorized
29in this chapter, and to carry out the purposes of this chapter
30may issue bonds payable in not more than ten equal installments
31with the rate of interest not exceeding that permitted by
32chapter 74A. An indebtedness shall not be incurred under this
33chapter until authorized by an election. The election shall
34be held and notice given in the same manner as provided in
35section 357F.8, and a sixty percent vote shall be necessary
-27-1to authorize indebtedness. Both Subject to section 39.2,
2subsection 4, both propositions may be submitted to the voters
3at the same election.
4 Sec. 59. Section 357G.11, Code 2023, is amended to read as
5follows:
6357G.11 Bonds in anticipation of revenue.
7A district may anticipate the collection of taxes authorized
8in this chapter, and to carry out the purposes of this chapter
9may issue bonds payable in not more than ten equal installments
10with the rate of interest not exceeding that permitted by
11chapter 74A. An indebtedness shall not be incurred under this
12chapter until authorized by an election. The election shall
13be held and notice given in the same manner as provided in
14section 357G.8, and a sixty percent vote shall be necessary
15to authorize indebtedness. Both Subject to section 39.2,
16subsection 4, both propositions may be submitted to the voters
17at the same election.
18 Sec. 60. Section 357I.12, Code 2023, is amended to read as
19follows:
20357I.12 Bonds in anticipation of revenue.
21A district may anticipate the collection of taxes by the
22levy authorized in this chapter, and to carry out the purposes
23of this chapter may issue bonds payable in not more than ten
24equal installments with the rate of interest not exceeding
25that permitted by chapter 74A. An indebtedness shall not be
26incurred under this chapter until authorized by an election.
27The election shall be held and notice given in the same manner
28as provided in section 357I.8, and the same sixty percent vote
29shall be necessary to authorize indebtedness. Both Subject to
30section 39.2, subsection 4, both propositions may be submitted
31to the voters at the same election.
32 Sec. 61. Section 384.26, subsections 2 and 3, Code 2023, are
33amended to read as follows:
342. Before the council may institute proceedings for the
35issuance of bonds for a general corporate purpose, it shall
-28-1call a special city election to vote upon the question of
2issuing the bonds. At the election the proposition must be
3submitted in the following form:
4Shall the ............ (insert the name of the city) issue
5its bonds in an amount not exceeding the amount of $.... for
6the purpose of ..........?
73. a. All elections held pursuant to this section shall
8be held on the date specified in section 39.2, subsection 4,
9paragraph “d”.
10b. Notice of the election must be given by publication
11as required by section 49.53 in a newspaper of general
12circulation in the city. At the election the ballot used for
13the submission of the proposition must be in substantially the
14form for submitting special questions at general elections.
15 Sec. 62. Section 394.2, subsection 1, Code 2023, is amended
16to read as follows:
171. It shall not be necessary to submit to the voters the
18proposition of issuing bonds for refunding purposes, but prior
19to the issuance of bonds for other purposes the council shall
20submit to the voters of the city at a general election or a
21regular city election on the date specified in section 39.2,
22subsection 4, paragraph “d”, the proposition of issuing the
23bonds. Notice of the election on the proposition of issuing
24bonds shall be published as required by section 49.53. The
25notice shall also state whether or not an admission fee is to
26be charged by the zoo or zoological gardens.
27 Sec. 63. Section 423F.4, subsection 2, paragraph b, Code
282023, is amended to read as follows:
29b. For bonds subject to the requirements of paragraph
30“a”, if at any time prior to the fifteenth day following the
31hearing, the secretary of the board of directors receives a
32petition containing the required number of signatures and
33asking that the question of the issuance of such bonds be
34submitted to the voters of the school district, the board shall
35either rescind its adoption of the resolution or direct the
-29-1county commissioner of elections to submit the question to the
2registered voters of the school district at an election held on
3a the date specified in section 39.2, subsection 4, paragraph
4“c” “d”. The petition must be signed by eligible electors equal
5in number to not less than one hundred or thirty percent of
6the number of voters at the last preceding election of school
7officials under section 277.1, whichever is greater. If the
8board submits the question at an election and a majority of
9those voting on the question favors issuance of the bonds, the
10board shall be authorized to issue the bonds.
11 Sec. 64. IMPLEMENTATION OF ACT. Section 25B.2, subsection
123, shall not apply to this division of this Act.
13 Sec. 65. APPLICABILITY. This division of this Act applies
14July 1, 2023, for elections on propositions relating to the
15issuing of bonds or other indebtedness occurring on or after
16that date.
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