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House File 718 - EnrolledAn Actrelating to local government property taxes, financial
authority, operations, and budgets, modifying certain
transit funding, property tax credits and exemptions, and
appropriations, requiring certain information related
to property taxation to be provided to property owners
and taxpayers, modifying provisions relating to fees for
driver’s licenses and nonoperator’s identification cards,
modifying provisions relating to certain writing fees,
modifying certain bonding procedures, making penalties
applicable, and including effective date, applicability, and
retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
COUNTY PROPERTY TAXES AND BUDGETS
Section 1. Section 331.422, unnumbered paragraph 1, Code
2023, is amended to read as follows:
Subject to this section and sections 331.423 through 331.426
331.425 or as otherwise provided by state law, the board of
each county shall certify property taxes annually at its March
session to be levied for county purposes as follows:
Sec. 2. Section 331.423, Code 2023, is amended to read as
follows:
331.423 Basic levies — maximums — adjustments.
Annually, the board may certify basic levies, subject to the
following limits:
1. For general county services, on all taxable property in
the county:
a. For fiscal years beginning before July 1, 2024,three
dollars and fifty cents per thousand dollars of the assessed
value of all taxable property in the county.
b. (1) For each fiscal year beginning on or after July 1,
2024, but before July 1, 2028, subject to subparagraph (3),
the greater of three dollars and fifty cents per thousand
dollars of assessed value used to calculate taxes for general
county services for the budget year and the adjusted general
county basic levy rate, as adjusted under subparagraph (2), if
applicable.
(2) (a) If the total assessed value used to calculate
taxes for general county services under this paragraph for the
budget year exceeds one hundred three percent, but is less
than one hundred six percent, of the total assessed value
used to calculate taxes for general county services for the
current fiscal year, the adjusted general county basic levy
rate, as previously adjusted under this subparagraph, if
applicable, shall be reduced to a rate per thousand dollars
of assessed value that is equal to one thousand multiplied
by the quotient of the current fiscal year’s actual property
-1-tax dollars certified for levy under this subsection 1 divided
by one hundred two percent of the total assessed value used
to calculate such taxes for the current fiscal year. For
the budget year beginning July 1, 2024, only, the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 1 shall also include property tax dollar
amounts levied for general county services by the county under
section 331.426, Code 2023, for the fiscal year beginning July
1, 2023.
(b) If the total assessed value used to calculate taxes
for general county services under this paragraph for the
budget year is equal to or exceeds one hundred six percent of
the total assessed value used to calculate taxes for general
county services for the current fiscal year, the adjusted
general county basic levy rate, as previously adjusted under
this subparagraph, if applicable, shall be reduced to a rate
per thousand dollars of assessed value that is equal to one
thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 divided by one hundred three percent of
the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection 1 shall also
include property tax dollar amounts levied for general county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023.
(3) (a) (i) In addition to the limitation under
subparagraph (2), if the county’s actual levy rate imposed
under this subsection 1 for the current fiscal year is three
dollars and fifty cents or less per thousand dollars of
assessed value and the total assessed value used to calculate
taxes for general county services under this paragraph for the
budget year exceeds one hundred three percent, but is less than
one hundred six percent, of the total assessed value used to
-2-calculate taxes for general county services for the current
fiscal year, the levy rate imposed under this subsection 1 for
the budget year shall not exceed a rate per thousand dollars
of assessed value that is equal to one thousand multiplied by
the quotient of the current fiscal year’s actual property tax
dollars certified for levy under this subsection 1 divided by
one hundred two percent of the total assessed value used to
calculate taxes for general county services for the current
fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection 1
for the current fiscal year shall also include the amount per
thousand dollars of assessed value levied for general county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 shall also include amounts levied for general
county services by the county under section 331.426, Code 2023,
for the fiscal year beginning July 1, 2023.
(b) (i) In addition to the limitation under subparagraph
(2), if the county’s actual levy rate imposed under this
subsection 1 for the current fiscal year is three dollars and
fifty cents or less per thousand dollars of assessed value and
the total assessed value used to calculate taxes for general
county services under this paragraph for the budget year is
equal to or exceeds one hundred six percent of the total
assessed value used to calculate taxes for general county
services for the current fiscal year, the levy rate imposed
under this subsection 1 for the budget year shall not exceed a
rate per thousand dollars of assessed value that is equal to
one thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 divided by one hundred three percent of the
total assessed value used to calculate taxes for general county
services for the current fiscal year.
-3- (ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection 1
for the current fiscal year shall also include the amount per
thousand dollars of assessed value levied for general county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 shall also include amounts levied for general
county services by the county under section 331.426, Code 2023,
for the fiscal year beginning July 1, 2023.
(4) Subject to adjustment under subparagraph (2), for
purposes of this paragraph, “adjusted general county basic
levy rate” means a levy rate per thousand dollars of assessed
value equal to the sum of three dollars and fifty cents plus
the amount per thousand dollars of assessed value levied for
general county services by the county under section 331.426,
Code 2023, for the fiscal year beginning July 1, 2023.
c. For each fiscal year beginning on or after July 1, 2028,
three dollars and fifty cents per thousand dollars of assessed
value.
2. For rural county services, on all taxable property in the
county outside of incorporated city areas:
a. For fiscal years beginning before July 1, 2024,three
dollars and ninety-five cents per thousand dollars of the
assessed value of taxable property in the county outside of
incorporated city areas.
b. (1) For each fiscal year beginning on or after July 1,
2024, but before July 1, 2028, subject to subparagraph (3), the
greater of three dollars and ninety-five cents per thousand
dollars of assessed value used to calculate taxes for rural
county services for the budget year and the adjusted rural
county basic levy rate, as adjusted under subparagraph (2), if
applicable.
(2) (a) If the total assessed value used to calculate
taxes for rural county services under this paragraph for the
-4-budget year exceeds one hundred three percent, but is less
than one hundred six percent, of the total assessed value
used to calculate taxes for rural county services for the
current fiscal year, the adjusted rural county basic levy
rate, as previously adjusted under this subparagraph, if
applicable, shall be reduced to a rate per thousand dollars
of assessed value that is equal to one thousand multiplied
by the quotient of the current fiscal year’s actual property
tax dollars certified for levy under this subsection 2 divided
by one hundred two percent of the total assessed value used
to calculate such taxes for the current fiscal year. For
the budget year beginning July 1, 2024, only, the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 2 shall also include property tax dollar
amounts levied for rural county services by the county under
section 331.426, Code 2023, for the fiscal year beginning July
1, 2023.
(b) If the total assessed value used to calculate taxes
for rural county services under this paragraph for the budget
year is equal to or exceeds one hundred six percent of the
total assessed value used to calculate taxes for rural county
services for the current fiscal year, the adjusted rural
county basic levy rate, as previously adjusted under this
subparagraph, if applicable, shall be reduced to a rate
per thousand dollars of assessed value that is equal to one
thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 divided by one hundred three percent of
the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection 2 shall also
include property tax dollar amounts levied for rural county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023.
-5- (3) (a) (i) In addition to the limitation under
subparagraph (2), if the county’s actual levy rate imposed
under this paragraph for the current fiscal year is three
dollars and ninety-five cents or less per thousand dollars of
assessed value and the total assessed value used to calculate
taxes for rural county services under this paragraph for the
budget year exceeds one hundred three percent, but is less
than one hundred six percent, of the total assessed value used
to calculate taxes for rural county services for the current
fiscal year, the levy rate imposed under this subsection 2 for
the budget year shall not exceed a rate per thousand dollars
of assessed value that is equal to one thousand multiplied by
the quotient of the current fiscal year’s actual property tax
dollars certified for levy under this subsection 2 divided by
one hundred two of the total assessed value used to calculate
taxes for rural county services for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection
2 for the current fiscal year shall also include the amount
per thousand dollars of assessed value levied for rural county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 shall also include amounts levied for rural
county services by the county under section 331.426, Code 2023,
for the fiscal year beginning July 1, 2023.
(b) (i) In addition to the limitation under subparagraph
(2), if the county’s actual levy rate imposed under this
subsection 2 for the current fiscal year is three dollars and
ninety-five cents or less per thousand dollars of assessed
value and the total assessed value used to calculate taxes
for rural county services under this paragraph for the budget
year is equal to or exceeds one hundred six percent of the
total assessed value used to calculate taxes for rural county
services for the current fiscal year, the levy rate imposed
-6-under this subsection 2 for the budget year shall not exceed
a rate per thousand dollars of assessed value that is equal
to one thousand multiplied by the quotient of the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 2 divided by one hundred three of the
total assessed value used to calculate taxes for rural county
services for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection
2 for the current fiscal year shall also include the amount
per thousand dollars of assessed value levied for rural county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 shall also include amounts levied for rural
county services by the county under section 331.426, Code 2023,
for the fiscal year beginning July 1, 2023.
(4) Subject to adjustment under subparagraph (2), for
purposes of this paragraph, “adjusted rural county basic levy
rate” means a levy rate per thousand dollars of assessed value
equal to the sum of three dollars and ninety-five cents plus
the amount per thousand dollars of assessed value levied for
rural county services by the county under section 331.426, Code
2023, for the fiscal year beginning July 1, 2023.
c. For each fiscal year beginning on or after July 1, 2028,
three dollars and ninety-five cents per thousand dollars of
assessed value.
3. For purposes of this section:
a. “Budget year” is the fiscal year beginning during the
calendar year in which a budget is certified.
b. “Current fiscal year” is the fiscal year ending during
the calendar year in which a budget for the budget year is
certified.
Sec. 3. Section 331.424, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
-7- To the extent that the basic levies under section 331.423
are insufficient to meet the county’s needs for the following
services, the board may certify supplemental levies as follows:
Sec. 4. Section 331.425, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
The board may certify an addition to a levy in excess
of the amounts otherwise permitted under sections 331.423,
and 331.424, and 331.426 if the proposition to certify an
addition to a levy has been submitted at a special levy
election and received a favorable majority of the votes cast
on the proposition. A special levy election is subject to the
following:
Sec. 5. Section 331.425, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION. 6. a. If the addition to a levy approved
under this section is due to unusual circumstances resulting
from the following, the duration of such approval at election
shall not exceed the following period of years:
(1) Unusual problems relating to major new functions
required by state law, three years.
(2) Unusual need for a new program which will provide
substantial benefit to county residents, if the county
establishes the need and the amount of necessary increased
cost, one year.
b. For an election to approve an addition to a levy for a
reason specified in paragraph “a” or as the result of a natural
disaster, the ballot shall include a statement of the major
reasons for the difference between the proposed basic tax rate
and the maximum basic tax rate, including a description of the
major new functions required by state law and the specific
new costs to the county to implement the new functions, a
description of the new program that will provide substantial
benefits to county residents and specific new costs to the
county for the program, or the conditions and damage resulting
from the natural disaster that the county must remedy.
-8- Sec. 6. Section 331.434, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
Annually, the board of each county, subject to section
331.403, subsection 4, sections 331.423 through 331.426
331.425, section 331.433A, and other applicable state law,
shall prepare and adopt a budget, certify taxes, and provide
appropriations as follows:
Sec. 7. Section 331.435, subsection 1, Code 2023, is amended
to read as follows:
1. The board may amend the adopted county budget, subject to
sections 331.423 through 331.426 331.425 and other applicable
state law, to permit increases in any class of proposed
expenditures contained in the budget summary published under
section 331.434, subsection 3.
Sec. 8. Section 331.441, subsection 2, paragraph c,
subparagraph (11), Code 2023, is amended by striking the
subparagraph.
Sec. 9. REPEAL. Section 331.426, Code 2023, is repealed.
Sec. 10. APPLICABILITY. This division of this Act applies
to taxes and budgets for fiscal years beginning on or after
July 1, 2024.
DIVISION II
CITY PROPERTY TAXES AND BUDGETS
Sec. 11. Section 24.48, subsection 5, Code 2023, is amended
by adding the following new paragraph:
NEW PARAGRAPH. c. For budgets for fiscal years beginning on
or after July 1, 2024, if the political subdivision is a city,
a suspension of the statutory property tax levy limitations
under this section shall only be approved by the state appeal
board in the event of a natural disaster or under the reasons
specified in subsection 1, paragraph “c” or “f”.
Sec. 12. Section 28M.5, subsection 1, Code 2023, is amended
to read as follows:
1. The commission, with the approval of the board of
supervisors of participating counties and the city council
-9-of participating cities in the chapter 28E agreement, may
levy annually a tax not to exceed ninety-five cents per
thousand dollars of the assessed value of all taxable property
in a regional transit district to the extent provided in
this section. The chapter 28E agreement may authorize the
commission to levy the tax at different rates within the
participating cities and counties in amounts sufficient to meet
the revenue responsibilities of such cities and counties as
allocated in the budget adopted by the commission. However,
for a city participating in a regional transit district, the
total of all the tax levies imposed in the city pursuant
to section 384.12, subsection 10 1, and this section shall
not exceed the aggregate of ninety-five cents per thousand
dollars of the assessed value of all taxable property in the
participating city.
Sec. 13. Section 37.8, Code 2023, is amended to read as
follows:
37.8 Levy for Cost of development, operation, and
maintenance.
For the development, operation, and maintenance of a
building or monument constructed, purchased, or donated under
this chapter, a city may levy a tax not to exceed eighty-one
cents per thousand dollars of assessed value on all the taxable
property within the city, as provided in section 384.12,
subsection 2 utilize taxes levied under section 384.1.
Sec. 14. Section 384.1, Code 2023, is amended to read as
follows:
384.1 Taxes certified.
1. A city may certify taxes to be levied by the county
on all taxable property within the city limits, for all city
government purposes. However, the
2. Notwithstanding subsection 3, thetax levied by a
city on tracts of land and improvements thereon used and
assessed for agricultural or horticultural purposes, shall
not exceed three dollars and three-eighths cents per thousand
-10-dollars of assessed value in any fiscal year. Improvements
located on such tracts of land and not used for agricultural
or horticultural purposes and all residential dwellings are
subject to the same rate of tax levied by the city on all other
taxable property within the city. A
3. a. For fiscal years beginning before July 1, 2024, a
city’s tax levy for the general fund shall not exceed eight
dollars and ten cents per thousand dollars of taxable assessed
value used to calculate taxes in any tax fiscal year, except
for the levies authorized in section 384.12.
b. Subject to adjustment under paragraph “c”, subparagraph
(2), for purposes of this subsection, “adjusted city general
fund levy rate” means a levy rate per thousand dollars of
assessed value equal to the sum of eight dollars and ten cents
per thousand dollars of assessed value plus the sum of the
following for the city, as applicable:
(1) The amount per thousand dollars of assessed value levied
by or on behalf of the city under section 384.8, Code 2023, for
the fiscal year beginning July 1, 2023.
(2) The total amount per thousand dollars of assessed
value levied by or on behalf of the city under section 384.12,
subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, and
20, Code 2023, for the fiscal year beginning July 1, 2023.
(3) The amount per thousand dollars of assessed value levied
by the city under section 24.48, Code 2023, for the fiscal year
beginning July 1, 2023.
c. (1) For each fiscal year beginning on or after July 1,
2024, but before July 1, 2028, subject to subparagraph (3),
a city’s tax levy for the general fund, except for levies
authorized in section 384.12, shall not exceed in any tax year
the greater of eight dollars and ten cents per thousand dollars
of assessed value used to calculate taxes for the budget year
and the adjusted city general fund levy rate, as adjusted under
subparagraph (2), if applicable.
(2) (a) If the total assessed value used to calculate taxes
-11-under this paragraph for the budget year exceeds one hundred
three percent, but is less than one hundred six percent,
of the total assessed value used to calculate taxes under
this subsection for the current fiscal year, the adjusted
city general fund levy rate, as previously adjusted under
this subparagraph, if applicable, shall be reduced to a rate
per thousand dollars of assessed value that is equal to one
thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection divided by one hundred two percent of the total
assessed value used to calculate such taxes for the current
fiscal year. For the budget year beginning July 1, 2024, only,
the current fiscal year’s actual property tax dollars certified
for levy under this subsection shall also include property
tax dollar amounts levied under the provisions specified in
paragraph “b”, subparagraphs (1), (2), and (3).
(b) If the total assessed value used to calculate taxes
under this paragraph for the budget year is equal to or exceeds
one hundred six percent of the total assessed value used to
calculate taxes under this subsection for the current fiscal
year, the adjusted city general fund levy rate, as previously
adjusted under this subparagraph, if applicable, shall be
reduced to a rate per thousand dollars of assessed value that
is equal to one thousand multiplied by the quotient of the
current fiscal year’s actual property tax dollars certified for
levy under this subsection divided by one hundred three percent
of the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection shall also
include property tax dollar amounts levied under the provisions
specified in paragraph “b”, subparagraphs (1), (2), and (3).
(3) (a) (i) In addition to the limitation under
subparagraph (2), if the city’s actual levy rate imposed
under this subsection for the current fiscal year is eight
-12-dollars and ten cents or less per thousand dollars of assessed
value and the total assessed value used to calculate taxes
under this paragraph for the budget year exceeds one hundred
three percent, but is less than one hundred six percent, of
the total assessed value used to calculate taxes under this
subsection for the current fiscal year, the levy rate imposed
under this paragraph for the budget year shall not exceed a
rate per thousand dollars of assessed value that is equal to
one thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection divided by one hundred two percent of the total
assessed value used to calculate taxes under this subsection
for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only, the
city’s actual levy rate imposed under this subsection for the
current fiscal year shall also include the sum of the amounts
per thousand dollars of assessed value specified in paragraph
“b”, subparagraphs (1), (2), and (3), and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection shall also include property tax dollar amounts
levied by the city under the provisions specified in paragraph
“b”, subparagraphs (1), (2), and (3).
(b) (i) In addition to the limitation under subparagraph
(2), if the city’s actual levy rate imposed under this
subsection for the current fiscal year is eight dollars and
ten cents or less per thousand dollars of assessed value
and the total assessed value used to calculate taxes under
this paragraph for the budget year is equal to or exceeds
one hundred six percent of the total assessed value used to
calculate taxes under this subsection for the current fiscal
year, the levy rate imposed under this paragraph for the budget
year shall not exceed a rate per thousand dollars of assessed
value that is equal to one thousand multiplied by the quotient
of the current fiscal year’s actual property tax dollars
certified for levy under this subsection divided by one hundred
-13-three percent of the total assessed value used to calculate
taxes under this subsection for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only, the
city’s actual levy rate imposed under this subsection for the
current fiscal year shall also include the sum of the amounts
per thousand dollars of assessed value specified in paragraph
“b”, subparagraphs (1), (2), and (3), and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection shall also include property tax dollar amounts
levied by the city under the provisions specified in paragraph
“b”, subparagraphs (1), (2), and (3).
d. For each fiscal year beginning on or after July 1, 2028,
a city’s tax levy rate for the general fund, except for levies
authorized in section 384.12, shall not exceed eight dollars
and ten cents per thousand dollars of assessed value used to
calculate taxes in any fiscal year.
4. For purposes of this section:
a. “Budget year” is the fiscal year beginning during the
calendar year in which a budget is certified.
b. “Current fiscal year” is the fiscal year ending during
the calendar year in which a budget for the budget year is
certified.
Sec. 15. Section 384.12, Code 2023, is amended to read as
follows:
384.12 Additional taxes.
A city may certify, for the general fund levy, taxes which
are not subject to the limit provided in section 384.1, and
which are in addition to any other moneys the city may wish to
spend for such purposes, as follows:
1. A tax not to exceed thirteen and one-half cents
per thousand dollars of assessed value for the support of
instrumental or vocal musical groups, one or more organizations
which have tax-exempt status under section 501(c)(3) of
the Internal Revenue Code and are organized and operated
exclusively for artistic and cultural purposes, or any of these
-14-purposes, subject to the following:
a. Upon receipt of a petition valid under the provisions of
section 362.4, the council shall submit to the voters at the
next regular city election the question of whether a tax shall
be levied.
b. If a majority approves the levy, it may be imposed.
c. The levy can be eliminated by the same procedure of
petition and election.
d. A tax authorized by an election held prior to the
effective date of the city code may be continued until
eliminated by the council, or by petition and election.
2. A tax not to exceed eighty-one cents per thousand dollars
of assessed value for development, operation, and maintenance
of a memorial building or monument, subject to the provisions
of subsection 1.
3. A tax not to exceed thirteen and one-half cents per
thousand dollars of assessed value for support of a symphony
orchestra, subject to the provisions of subsection 1.
4. A tax not to exceed twenty-seven cents per thousand
dollars of assessed value for the operation of cultural and
scientific facilities, subject to the provisions of subsection
1, except that the question may be submitted on the council’s
own motion.
5. A tax to aid in the construction of a county bridge,
subject to the provisions of subsection 1, except that the
question must be submitted at a special election. The expense
of a special election under this subsection must be paid by the
county. The notice of the special election must include full
details of the proposal, including the location of the proposed
bridge, the rate of tax to be levied, and all other conditions.
6. A tax to aid a company incorporated under the laws of
this state in the construction of a highway or combination
bridge across any navigable boundary river of this state,
commencing or terminating in the city and suitable for use
as highway, or for both highway and railway purposes. This
-15-tax levy is subject to the provisions of subsections 1 and 5.
The levy is limited to one dollar and thirty-five cents per
thousand dollars of the assessed value of taxable property in
the city. The estimated cost of the bridge must be at least
ten thousand dollars, and the city aid may not exceed one-half
of the estimated cost. The notice of the special election
must include the name of the corporation to be aided, and all
conditions required of the corporation. Tax moneys received
for this purpose may not be paid over by the county treasurer
until the city has filed a statement that the corporation has
complied with all conditions.
7. If a tax has been voted for aid of a bridge under
subsection 6, a further tax may be voted for the purpose of
purchasing the bridge, subject to the provisions of subsection
1. The levy under this subsection is limited to three dollars
and thirty-seven and one-half cents per thousand dollars of the
assessed value of the taxable property in the city, payable in
not less than ten annual installments.
8. A tax for the purpose of carrying out the terms of a
contract for the use of a bridge by a city situated on a river
over which a bridge has been built. The tax may not exceed
sixty-seven and one-half cents per thousand dollars of assessed
value each year.
9. A tax for aid to a public transportation company,
subject to the procedure provided in subsection 1, except the
question must be submitted at a special election. The levy is
limited to three and three-eighths cents per thousand dollars
of assessed value. In addition to any other conditions the
following requirements must be met before moneys received for
this purpose may be paid over by the county treasurer:
a. The public transportation company shall provide the city
with copies of state and federal income tax returns for the
five years preceding the year for which payment is contemplated
or for such lesser period of time as the company has been in
operation.
-16- b. The city shall, in any given year, be authorized to pay
over only such sums as will yield not to exceed two percent
of the public transportation company’s investment as the same
is valued in its tax depreciation schedule, provided that
corporate profits and losses for the five preceding years or
for such lesser period of time as the company has been in
operation shall not average in excess of a two percent net
return. Taxes levied under this subsection may not be used to
subsidize losses incurred prior to the election required by
this subsection.
10. 1. A tax for the operation and maintenance of a
municipal transit system or for operation and maintenance of a
regional transit district, and for the creation of a reserve
fund for the system or district, in an amount not to exceed
ninety-five cents per thousand dollars of assessed value each
year, when the revenues from the transit system or district are
insufficient for such purposes.
11. If a city has entered into a lease of a building or
complex of buildings to be operated as a civic center, a tax
sufficient to pay the installments of rent and for maintenance,
insurance and taxes not included in the lease rental payments.
12. A tax not to exceed thirteen and one-half cents per
thousand dollars of assessed value each year for operating and
maintaining a civic center owned by a city.
13. A tax not to exceed six and three-fourths cents per
thousand dollars of assessed value for planning a sanitary
disposal project.
14. 2. A tax not to exceed twenty-seven cents per thousand
dollars of assessed value each year for an aviation authority
as provided in section 330A.15.
15. A tax not to exceed six and three-fourths cents per
thousand dollars of assessed value each year for a levee
improvement fund in special charter cities as provided in
section 420.155.
16. A tax not to exceed twenty and one-half cents per
-17-thousand dollars of assessed value each year to maintain an
institution received by gift or devise, subject to an election
as required under subsection 1.
17. 3. A tax to pay the premium costs on tort liability
insurance, property insurance, and any other insurance that
may be necessary in the operation of the city, the costs of a
self-insurance program, the costs of a local government risk
pool and amounts payable under any insurance agreements to
provide or procure such insurance, self-insurance program, or
local government risk pool.
18. A tax to fund an emergency medical services district
under chapter 357G.
19. 4. A tax that exceeds any tax levy limit within this
chapter, provided the question has been submitted at a special
levy election and received a simple majority of the votes cast
on the proposition to authorize the enumerated levy limit to be
exceeded for the proposed budget year.
a. The election may be held as specified in this subsection
if notice is given by the city council, not later than
forty-six days before the first Tuesday in March, to the county
commissioner of elections that the election is to be held.
b. An election under this subsection shall be held on
the first Tuesday in March and be conducted by the county
commissioner of elections in accordance with the law.
c. The ballot question shall be in substantially the
following form:
WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........?
(Vote for only one of the following choices.)
CHANGE LEVY AMOUNT ...
Add to the existing levy amount a tax for the purpose of
.......... (state purpose of proposed levy) at a rate of ...
(rate) which will provide an additional $.... (amount).
KEEP CURRENT LEVY ...
Continue under the current maximum rate of ..., providing
$.... (amount).
-18- d. The commissioner of elections conducting the election
shall notify the city officials and other county auditors where
applicable, of the results within two days of the canvass which
shall be held on the second day that is not a holiday following
the special levy election, and beginning no earlier than 1:00
p.m.on that day.
e. Notice of the election shall be published twice in
accordance with the provisions of section 362.3, except that
the first such notice shall be given at least two weeks before
the election.
f. The cost of the election shall be borne by the city.
g. The election provisions of this subsection shall
supersede other provisions for elections only to the extent
necessary to comply with the provisions of this subsection.
h. The provisions of this subsection apply to all cities,
however organized, including special charter cities which may
adopt ordinances where necessary to carry out these provisions.
i. The council shall certify the city’s budget with the tax
askings not exceeding the amount approved by the special levy
election.
20. A tax not to exceed twenty-seven cents per thousand
dollars of assessed value for support of a public library,
subject to petition and referendum requirements of subsection
1, except that if a majority approves the levy, it shall be
imposed.
21. 5. A tax for the support of a local emergency
management commission established pursuant to chapter 29C.
Sec. 16. Section 384.24, subsection 4, paragraph i, Code
2023, is amended by striking the paragraph.
Sec. 17. Section 384.110, Code 2023, is amended to read as
follows:
384.110 Insurance, self-insurance, and risk pooling funds.
A city may credit funds to a fund or funds for the purposes
authorized by section 364.4, subsection 5; section 384.12,
subsection 17 3; or section 384.24, subsection 3, paragraph “s”.
-19-Moneys credited to the fund or funds, and interest earned on
such moneys, shall remain in the fund or funds until expended
for purposes authorized by section 364.4, subsection 5; section
384.12, subsection 17 3; or section 384.24, subsection 3,
paragraph “s”.
Sec. 18. REPEAL. Section 384.8, Code 2023, is repealed.
Sec. 19. APPLICABILITY. This division of this Act applies
to taxes and budgets for fiscal years beginning on or after
July 1, 2024.
DIVISION III
public education and recreation tax levy
Sec. 20. Section 300.2, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION. 4. A levy under this chapter shall not be
approved by the voters on or after the effective date of this
division of this Act.
Sec. 21. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION IV
COUNTY SHERIFF FEE REPORT
Sec. 22. Section 331.655, subsection 5, Code 2023, is
amended by striking the subsection.
DIVISION V
Homestead property tax credit
Sec. 23. Section 2.48, subsection 3, paragraph f,
subparagraph (1), Code 2023, is amended to read as follows:
(1) The homestead tax exemption and credit under chapter
425.
Sec. 24. Section 25B.7, subsection 2, paragraph a, Code
2023, is amended to read as follows:
a. Homestead tax credit pursuant to sections section 425.1,
sections 425.2 through 425.13, and section425.15.
Sec. 25. Section 103.22, subsection 7, Code 2023, is amended
to read as follows:
7. Prohibit an owner of property from performing work on the
-20-owner’s principal residence, if such residence is an existing
dwelling rather than new construction and is not an apartment
that is attached to any other apartment or building, as those
terms are defined in section 499B.2, and is not larger than a
single-family dwelling, or require such owner to be licensed
under this chapter. In order to qualify for inapplicability
pursuant to this subsection, a residence shall qualify for the
homestead tax exemption credit.
Sec. 26. Section 105.11, subsection 3, Code 2023, is amended
to read as follows:
3. Prohibit an owner of property from performing work on the
owner’s principal residence, if such residence is an existing
dwelling rather than new construction and is not larger than a
single-family dwelling, or farm property, excluding commercial
or industrial installations or installations in public use
buildings or facilities, or require such owner to be licensed
under this chapter. In order to qualify for inapplicability
pursuant to this subsection, a residence shall qualify for the
homestead tax exemption credit.
Sec. 27. Section 331.401, subsection 1, paragraphs e and f,
Code 2023, are amended to read as follows:
e. Adopt resolutions authorizing the county assessor
to provide forms for homestead tax exemption and credit
claimants as provided in section 425.2 and military service tax
exemptions as provided in section 426A.14.
f. Examine and allow or disallow claims for homestead tax
exemption and credit in accordance with section 425.3 and
claims for military service tax exemption in accordance with
chapter 426A. The board, by a single resolution, may allow or
disallow the exemptions recommended by the assessor.
Sec. 28. Section 331.512, subsection 3, Code 2023, is
amended to read as follows:
3. Carry out duties relating to the homestead tax exemption
and credit and agricultural land tax credit as provided in
chapters 425 and 426.
-21- Sec. 29. Section 331.559, subsection 12, Code 2023, is
amended to read as follows:
12. Carry out duties relating to the administration of
the homestead tax exemption and credit and other credits as
provided in sections 425.4, 425.5, 425.7, 425.9, 425.10, and
425.25.
Sec. 30. NEW SECTION. 425.1A Homestead tax exemption.
1. The following exemptions from taxation shall be allowed
in addition to the homestead credit for an owner that has
attained the age of sixty-five years by January 1 of the
assessment year:
a. For the assessment year beginning January 1, 2023, the
eligible homestead, not to exceed three thousand two hundred
fifty dollars in taxable value.
b. For the assessment year beginning January 1, 2024, and
each succeeding assessment year, the eligible homestead, not to
exceed six thousand five hundred dollars in taxable value.
2. Section 25B.7, subsection 1, shall not apply to the
property tax exemption provided in this section.
Sec. 31. Section 425.2, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION. 3A. The form for claiming the credit shall
also include the ability to claim the exemption under section
425.1A for qualified owners. If the claim for the homestead
credit is allowed, such allowance shall also include allowance
of the homestead exemption if the owner meets the age criteria
for the exemption. The homestead exemption shall be allowed
for successive years without further filing in the same manner
as the homestead credit.
Sec. 32. Section 425.3, subsection 4, Code 2023, is amended
to read as follows:
4. The county auditor shall forward the claims to the board
of supervisors. The board shall allow or disallow the claims.
If the board disallows a claim, it shall send written notice,
by mail, to the claimant at the claimant’s last known address.
-22-The notice shall state the reasons for disallowing the claim
for the credit. The board is not required to send notice that
a claim is disallowed if the claimant voluntarily withdraws the
claim.
Sec. 33. Section 425.4, Code 2023, is amended to read as
follows:
425.4 Certification to treasurer.
All claims which have been allowed by the board of
supervisors shall be certified on or before August 1, in each
year, by the county auditor to the county treasurer, which
certificates shall list the total amount of dollars, listed by
taxing district in the county, due for homestead tax exemptions
and credits claimed and allowed. The county treasurer shall
forthwith then certify to the department of revenue the total
amount of dollars, listed by taxing district in the county, due
for homestead tax credits claimed and allowed.
Sec. 34. Section 425.6, Code 2023, is amended to read as
follows:
425.6 Waiver by neglect.
If a person fails to file a claim or to have a claim on file
with the assessor for the credits provided in this subchapter,
the person is deemed to have waived the homestead exemption
and credit for the year in which the person failed to file the
claim or to have a claim on file with the assessor.
Sec. 35. Section 425.7, subsection 3, Code 2023, is amended
to read as follows:
3. a. If the department of revenue determines that a claim
for homestead exemption and credit has been allowed by the
board of supervisors which is not justifiable under the law
and not substantiated by proper facts, the department may, at
any time within thirty-six months from July 1 of the year in
which the claim is allowed, set aside the allowance. Notice
of the disallowance shall be given to the county auditor of
the county in which the claim has been improperly granted and
a written notice of the disallowance shall also be addressed
-23-to the claimant at the claimant’s last known address. The
claimant or board of supervisors may appeal to the director
of revenue within thirty days from the date of the notice of
disallowance. The director shall grant a hearing and if, upon
the hearing, the director determines that the disallowance was
incorrect, the director shall set aside the disallowance. The
director shall notify the claimant and the board of supervisors
of the result of the hearing. The claimant or the board of
supervisors may seek judicial review of the action of the
director of revenue in accordance with chapter 17A.
b. If a claim is disallowed by the department of revenue
and not appealed to the director of revenue or appealed to
the director of revenue and thereafter upheld upon final
resolution, including any judicial review, any amounts of
exemptions allowed and credits allowed and paid from the
homestead credit fund including the penalty, if any, become a
lien upon the property on which the exemption or credit was
originally granted, if still in the hands of the claimant,
and not in the hands of a bona fide purchaser, and any amount
so erroneously paid including the penalty, if any, shall be
collected by the county treasurer in the same manner as other
taxes and the collections shall be returned to the department
of revenue and credited to the homestead credit fund. The
director of revenue may institute legal proceedings against a
homestead credit claimant for the collection of payments made
on disallowed credits and the penalty, if any. If a person
makes a false claim or affidavit with fraudulent intent to
obtain the homestead exemption or credit, the person is guilty
of a fraudulent practice and the claim shall be disallowed
in full. If the credit has been paid, the amount of the
credit plus a penalty equal to twenty-five percent of the
amount of credit plus interest, at the rate in effect under
section 421.7, from the time of payment shall be collected
by the county treasurer in the same manner as other property
taxes, penalty, and interest are collected and when collected
-24-shall be paid to the director of revenue. If a homestead
exemption or credit is disallowed and the claimant failed to
give written notice to the assessor as required by section
425.2 when the property ceased to be used as a homestead by the
claimant, a civil penalty equal to five percent of the amount
of the disallowed exemption or credit is assessed against the
claimant.
Sec. 36. Section 425.9, subsections 2 and 3, Code 2023, are
amended to read as follows:
2. If any claim for exemption or credit made hereunder
has been denied by the board of supervisors, and such action
is subsequently reversed on appeal, the exemption or credit
shall be allowed on the homestead involved in said appeal, and
the director of revenue, the county auditor, and the county
treasurer shall make such exemption or credit and change their
books and records accordingly.
3. In the event the appealing taxpayer has paid one or both
of the installments of the tax payable in the year or years in
question on such homestead valuation, remittance shall be made
to such taxpayer of the amount of such credit or exemption.
Sec. 37. Section 425.10, Code 2023, is amended to read as
follows:
425.10 Reversal of allowed claim.
In the event any claim is allowed, and subsequently reversed
on appeal, any exemption and credit made under the claim shall
be void. The amount of the erroneous credit shall be charged
against the property in question, and the director of revenue,
the county auditor, and the county treasurer are authorized
and directed to correct their books and records accordingly.
The amount of the erroneous credit, when collected, shall
be returned by the county treasurer to the homestead credit
fund to be reallocated the following year as provided in this
subchapter. Taxes due following reversal of a claim for an
exemption shall be collected by the county treasurer and
allocated to the appropriate taxing entities.
-25- Sec. 38. Section 425.11, subsection 1, paragraph d,
subparagraph (3), Code 2023, is amended to read as follows:
(3) It must not embrace more than one dwelling house, but
where a homestead has more than one dwelling house situated
thereon, the exemption and credit provided for in this
subchapter shall apply to the home and buildings used by the
owner, but shall not apply to any other dwelling house and
buildings appurtenant.
Sec. 39. Section 425.11, subsection 1, paragraph e, Code
2023, is amended to read as follows:
e. “Owner” means the person who holds the fee simple
title to the homestead, and in addition shall mean the person
occupying as a surviving spouse or the person occupying under
a contract of purchase which contract has been recorded in
the office of the county recorder of the county in which the
property is located; or the person occupying the homestead
under devise or by operation of the inheritance laws where
the whole interest passes or where the divided interest is
shared only by persons related or formerly related to each
other by blood, marriage or adoption; or the person occupying
the homestead is a shareholder of a family farm corporation
that owns the property; or the person occupying the homestead
under a deed which conveys a divided interest where the divided
interest is shared only by persons related or formerly related
to each other by blood, marriage or adoption; or where the
person occupying the homestead holds a life estate with the
reversion interest held by a nonprofit corporation organized
under chapter 504, provided that the holder of the life estate
is liable for and pays property tax on the homestead; or where
the person occupying the homestead holds an interest in a
horizontal property regime under chapter 499B, regardless
of whether the underlying land committed to the horizontal
property regime is in fee or as a leasehold interest, provided
that the holder of the interest in the horizontal property
regime is liable for and pays property tax on the homestead;
-26-or where the person occupying the homestead is a member of a
community land trust as defined in 42 U.S.C. §12773, regardless
of whether the underlying land is in fee or as a leasehold
interest, provided that the member of the community land trust
is occupying the homestead and is liable for and pays property
tax on the homestead. For the purpose of this subchapter,
the word “owner” shall be construed to mean a bona fide owner
and not one for the purpose only of availing the person of
the benefits of this subchapter. In order to qualify for the
homestead tax exemption and credit, evidence of ownership shall
be on file in the office of the clerk of the district court
or recorded in the office of the county recorder at the time
the owner files with the assessor a verified statement of the
homestead claimed by the owner as provided in section 425.2.
Sec. 40. Section 425.12, Code 2023, is amended to read as
follows:
425.12 Indian land.
Each forty acres of land, or fraction thereof, occupied by
a member or members of the Sac and Fox Indians in Tama county,
which land is held in trust by the secretary of the interior of
the United States for said Indians, shall be given a homestead
tax exemption and credit within the meaning and under the
provisions of this subchapter. Application for such homestead
tax exemption and credit shall be made to the county auditor of
Tama county and may be made by a representative of the tribal
council.
Sec. 41. Section 425.13, Code 2023, is amended to read as
follows:
425.13 Conspiracy to defraud.
If any two or more persons conspire and confederate together
with fraudulent intent to obtain the exemption or credit
provided for under the terms of this subchapter by making a
false deed, or a false contract of purchase, they are guilty of
a fraudulent practice.
Sec. 42. Section 425.16, subsection 1, Code 2023, is amended
-27-to read as follows:
1. In addition to the homestead tax credit allowed under
section 425.1, subsections 1 through 4, and the homestead
exemption under section 425.lA, if applicable, persons who
own or rent their homesteads and who meet the qualifications
provided in this subchapter are eligible for a property
tax credit for property taxes due or reimbursement of rent
constituting property taxes paid.
Sec. 43. Section 425.17, subsections 4 and 8, Code 2023, are
amended to read as follows:
4. “Homestead” means the dwelling owned or rented and
actually used as a home by the claimant during the period
specified in subsection 2, and so much of the land surrounding
it including one or more contiguous lots or tracts of land,
as is reasonably necessary for use of the dwelling as a home,
and may consist of a part of a multidwelling or multipurpose
building and a part of the land upon which it is built. It
does not include personal property except that a manufactured
or mobile home may be a homestead. Any dwelling or a part of
a multidwelling or multipurpose building which is exempt from
taxation, except for an exemption under section 425.1A, does
not qualify as a homestead under this subchapter. However,
solely for purposes of claimants living in a property and
receiving reimbursement for rent constituting property taxes
paid immediately before the property becomes tax exempt, and
continuing to live in it after it becomes tax exempt, the
property shall continue to be classified as a homestead.
A homestead must be located in this state. When a person
is confined in a nursing home, extended-care facility, or
hospital, the person shall be considered as occupying or living
in the person’s homestead if the person is the owner of the
homestead and the person maintains the homestead and does not
lease, rent, or otherwise receive profits from other persons
for the use of the homestead.
8. “Property taxes due” means property taxes including any
-28-special assessments, but exclusive of delinquent interest and
charges for services, due on a claimant’s homestead in this
state, but includes only property taxes for which the claimant
is liable and which will actually be paid by the claimant.
However, if the claimant is a person whose property taxes have
been suspended under sections 427.8 and 427.9, “property taxes
due” means property taxes including any special assessments,
but exclusive of delinquent interest and charges for services,
due on a claimant’s homestead in this state, but includes only
property taxes for which the claimant is liable and which
would have to be paid by the claimant if the payment of the
taxes has not been suspended pursuant to sections 427.8 and
427.9. “Property taxes due” shall be computed with no deduction
for any credit under this subchapter or for any homestead
credit allowed under section 425.1 subchapter I. Each claim
shall be based upon the taxes due during the fiscal year next
following the base year. If a homestead is owned by two or
more persons as joint tenants or tenants in common, and one or
more persons are not members of claimant’s household, “property
taxes due” is that part of property taxes due on the homestead
which equals the ownership percentage of the claimant and the
claimant’s household. The county treasurer shall include with
the tax receipt a statement that if the owner of the property
is eighteen years of age or over, the person may be eligible
for the credit allowed under this subchapter. If a homestead
is an integral part of a farm, the claimant may use the total
property taxes due for the larger unit. If a homestead is an
integral part of a multidwelling or multipurpose building the
property taxes due for the purpose of this subsection shall be
prorated to reflect the portion which the value of the property
that the household occupies as its homestead is to the value
of the entire structure. For purposes of this subsection,
“unit” refers to that parcel of property covered by a single tax
statement of which the homestead is a part.
Sec. 44. Section 435.26, subsection 1, paragraph a, Code
-29-2023, is amended to read as follows:
a. A mobile home or manufactured home which is located
outside a manufactured home community or mobile home park shall
be converted to real estate by being placed on a permanent
foundation and shall be assessed for real estate taxes. A
home, after conversion to real estate, is eligible for the
homestead tax exemption and credit and the military service
tax exemption as provided in sections 425.2 and chapter 425,
subchapter I, and section 426A.11. A taxable mobile home or
manufactured home which is located outside of a manufactured
home community or mobile home park as of January 1, 1995, is
also exempt from the permanent foundation requirements of this
chapter until the home is relocated.
Sec. 45. Section 435.26A, subsection 3, Code 2023, is
amended to read as follows:
3. After the surrender of a manufactured home’s certificate
of title under this section, the manufactured home shall
continue to be taxed under section 435.22 and is not eligible
for the homestead tax exemption and credit or the military
service tax exemption and credit. A foreclosure action on a
manufactured home whose title has been surrendered under this
section shall be conducted as a real estate foreclosure. A tax
lien and its priority shall remain the same on a manufactured
home after its certificate of title has been surrendered.
Sec. 46. Section 499A.14, Code 2023, is amended to read as
follows:
499A.14 Taxation.
The real estate shall be taxed in the name of the
cooperative, and each member of the cooperative shall pay
that member’s proportionate share of the tax in accordance
with the proration formula set forth in the bylaws, and each
member occupying an apartment as a residence shall receive
that member’s proportionate homestead tax exemption and credit
and each veteran of the military services of the United States
identified as such under the laws of the state of Iowa or the
-30-United States shall receive as a credit that member’s veterans
tax benefit as prescribed by the laws of the state of Iowa.
Sec. 47. EXISTING HOMESTEAD CLAIMS. Homestead credit
claims approved under chapter 425, subchapter I, prior to and
valid on the effective date of this division of this Act shall
result in a homestead exemption under chapter 425, subchapter
I, as enacted in this division of this Act, without further
filing by the claimant if the claimant meets the criteria for
the exemption and the assessor has appropriate information to
verify such eligibility.
Sec. 48. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 49. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to assessment years beginning on or
after January 1, 2023.
DIVISION VI
MILITARY SERVICE PROPERTY TAX EXEMPTION AND CREDIT
Sec. 50. Section 25B.7, subsection 2, paragraph c, Code
2023, is amended by striking the paragraph.
Sec. 51. Section 426A.1A, Code 2023, is amended to read as
follows:
426A.1A Appropriation.
There For each fiscal year beginning before July 1, 2024,
there is appropriated from the general fund of the state the
amounts necessary to fund the credits provided under this
chapter.
Sec. 52. Section 426A.2, Code 2023, is amended to read as
follows:
426A.2 Military service tax credit.
The For each fiscal year beginning before July 1, 2024, the
moneys appropriated under section 426A.1A shall be apportioned
each year so as to replace all or a portion of the tax which
would be due on property eligible for military service tax
exemption in the state, if the property were subject to
taxation, the amount of the credit to be not more than six
-31-dollars and ninety-two cents per thousand dollars of assessed
value of property which would be subject to the tax, except for
the military service tax exemption.
Sec. 53. Section 426A.11, subsections 1 and 2, Code 2023,
are amended to read as follows:
1. The property, not to exceed two thousand seven hundred
seventy-eight dollars in taxable value for assessment years
beginning before January 1, 2023, of any veteran, as defined in
section 35.1, of World War I.
2. a. The property, not to exceed one thousand eight
hundred fifty-two dollars in taxable value for assessment years
beginning before January 1, 2023, of an honorably separated,
retired, furloughed to a reserve, placed on inactive status,
or discharged veteran, as defined in section 35.1, subsection
2, paragraph “a” or “b”.
b. The property, not to exceed four thousand dollars in
taxable value for the assessment years beginning on or after
January 1, 2023, of an honorably separated, retired, furloughed
to a reserve, placed on inactive status, or discharged veteran,
as defined in section 35.1, subsection 2, paragraph “a” or “b”.
Sec. 54. IMPLEMENTATION. Section 25B.7, subsection 1,
shall not apply to the property tax exemption provided in this
Act.
Sec. 55. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 56. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to assessment years beginning on or
after January 1, 2023.
DIVISION VII
Property tax benefits and incentives
Sec. 57. NEW SECTION. 404.3C Assessment agreements —
commercial property.
1. For revitalization areas established under this chapter
on or after the effective date of this division of this Act
and for first-year exemption applications for property located
-32-in a revitalization area in existence on the effective date
of this division of this Act filed on or after the effective
date of this division of this Act, commercial property shall
not receive a tax exemption under this chapter unless the city
or county, as applicable, and the owner of the qualified real
estate enter into a written assessment agreement specifying a
minimum actual value until a specified termination date for the
duration of the exemption period.
2. a. The assessment agreement shall be presented to the
appropriate assessor. The assessor shall review the plans and
specifications for the improvements to be made to the property
and if the minimum actual value contained in the assessment
agreement appears to be reasonable, the assessor shall execute
the following certification upon the agreement:
The undersigned assessor, being legally responsible for the
assessment of the above described property upon completion of
the improvements to be made on it, certifies that the actual
value assigned to that land and improvements upon completion
shall not be less than $.........
b. The assessment agreement with the certification of
the assessor and a copy of this subsection shall be filed in
the office of the county recorder of the county where the
property is located. Upon completion of the improvements,
the assessor shall value the property as required by law,
except that the actual value shall not be less than the minimum
actual value contained in the assessment agreement. This
subsection does not prohibit the assessor from assigning a
higher actual value to the property or prohibit the owner
from seeking administrative or legal remedies to reduce the
actual value assigned except that the actual value shall not
be reduced below the minimum actual value contained in the
assessment agreement. An assessor, county auditor, board of
review, director of revenue, or court of this state shall not
reduce or order the reduction of the actual value below the
minimum actual value in the agreement during the term of the
-33-agreement regardless of the actual value which may result from
the incomplete construction of improvements, destruction or
diminution by any cause, insured or uninsured, except in the
case of acquisition or reacquisition of the property by a
public entity. Recording of an assessment agreement complying
with this subsection constitutes notice of the assessment
agreement to a subsequent purchaser or encumbrancer of the land
or any part of it, whether voluntary or involuntary, and is
binding upon a subsequent purchaser or encumbrancer.
Sec. 58. NEW SECTION. 404.3D Exemptions for residential
property.
For revitalization areas established under this chapter on
or after the effective date of this division of this Act and
for first-year exemption applications for property located in a
revitalization area in existence on the effective date of this
division of this Act filed on or after the effective date of
this division of this Act, an exemption authorized under this
chapter for property that is residential property shall not
apply to property tax levies imposed by a school district.
Sec. 59. EFFECTIVE DATE. This division of this Act takes
effect July 1, 2024.
DIVISION VIII
transit funding
Sec. 60. Section 364.2, subsection 4, paragraph f,
subparagraph (1), subparagraph division (b), Code 2023, is
amended to read as follows:
(b) For franchise fees assessed and collected during fiscal
years beginning on or after July 1, 2013 2024, but before
July 1, 2030, by a city that is the subject of a judgment,
court-approved settlement, or court-approved compromise
providing for payment of restitution, a refund, or a return
described in section 384.3A, subsection 3, paragraph “j” with
a population exceeding two hundred thousand, the rate of the
franchise fee shall not exceed seven and one-half percent
of gross revenues generated from sales of the franchisee in
-34-the city, and franchise fee amounts assessed and collected
during such fiscal years in excess of five percent of gross
revenues generated from sales shall be used solely for the
purpose specified in section 384.3A, subsection 3, paragraph
“j”. A city may assess and collect a franchise fee in excess
of five percent of gross revenues generated from the sales
of the franchisee pursuant to this subparagraph division (b)
for a period not to exceed seven consecutive fiscal years
once the franchise fee is first imposed at a rate in excess
of five percent. An ordinance increasing the franchise fee
rate to greater than five percent pursuant to this subparagraph
division (b) shall not become effective unless approved at
an election. After passage of the ordinance, the council
shall submit the proposal at a special election held on a date
specified in section 39.2, subsection 4, paragraph “b”. If a
majority of those voting on the proposal approves the proposal,
the city may proceed as proposed. The complete text of the
ordinance shall be included on the ballot and the full text
of the ordinance posted for the voters pursuant to section
52.25. All absentee voters shall receive the full text of the
ordinance along with the absentee ballot. This subparagraph
division (b) is repealed July 1, 2030.
Sec. 61. Section 384.3A, subsection 3, paragraph j, Code
2023, is amended to read as follows:
j. For franchise fees assessed and collected by a city in
excess of five percent of gross revenues generated from sales
of the franchisee within the city pursuant to section 364.2,
subsection 4, paragraph “f”, subparagraph (1), subparagraph
division (b), during fiscal years beginning on or after July 1,
2013 2024, but before July 1, 2030, the adjustment, renewal,
or extension of any part or all of the legal indebtedness of
a city, whether evidenced by bonds, warrants, court-approved
settlements, court-approved compromises, or judgments, or the
funding or refunding of the same, if such legal indebtedness
relates to restitution, a refund, or a return ordered by a
-35-court of competent jurisdiction for franchise fees assessed
and collected by the city before June 20, 2013 solely for the
reduction of property tax levies that support the operation and
maintenance of a municipal transit system or a regional transit
district or to maintain transportation service levels of a
municipal transit system or a regional transit district. This
paragraph “j” is repealed July 1, 2030.
Sec. 62. EFFECTIVE DATE. This division of this Act takes
effect July 1, 2024.
DIVISION IX
COUNTY AUDITOR VALUATION REPORTS
Sec. 63. Section 331.510, subsections 3 and 4, Code 2023,
are amended to read as follows:
3. An annual report not later than January 1 to the
department of management of the valuation by class of property
for each taxing district in the county on forms provided by the
department of management. The valuations reported shall be
those valuations used for determining the levy rates necessary
to fund the budgets of the taxing districts for the following
fiscal year. Each annual report under this subsection for
assessment years beginning on or after January 1, 2024,
shall distinguish such values as revaluation or other type of
addition to value, as defined and submitted in the assessor’s
abstract transmitted to the department of revenue under section
441.45.
4. An annual report not later than January 1 to the
governing body of each taxing district in the county of the
assessed valuations of taxable property in the taxing district
as reported to the department of management. Each annual
report under this subsection for assessment years beginning
on or after January 1, 2024, shall distinguish such values as
revaluation or other type of addition to value, as defined
and submitted in the assessor’s abstract transmitted to the
department of revenue under section 441.45.
DIVISION X
-36-local government budgets and taxpayer statements
Sec. 64. NEW SECTION. 24.2A Budget statements to owners
and taxpayers.
1. For purposes of this section only:
a. “Budget year” is the fiscal year beginning during the
calendar year in which a budget is certified.
b. “Current fiscal year” is the fiscal year ending during
the calendar year in which a budget for the budget year is
certified.
c. “Effective property tax rate” means the property tax rate
per one thousand dollars of assessed value and is equal to
one thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy divided
by the total assessed value used to calculate taxes for the
budget year.
d. “Political subdivision” means a school district, a
county, or a city.
2. a. On or before March 15 of each year, each political
subdivision shall file with the department of management a
report containing all necessary information for the department
of management to compile and calculate amounts required to be
included in the statements mailed under paragraph “b”.
b. Not later than March 20, the county auditor, using
information compiled and calculated by the department of
management under paragraph “a”, shall send to each property
owner or taxpayer within the county by regular mail an
individual statement containing all of the following for
each of the political subdivisions comprising the owner’s or
taxpayer’s taxing district:
(1) The sum of the current fiscal year’s actual property
taxes certified for levy for all of the political subdivision’s
levies and the combined property tax rate per one thousand
dollars for such tax amount for the current fiscal year.
(2) The combined effective property tax rate for the
political subdivision calculated using the sum of the current
-37-fiscal year’s actual property taxes certified for levy for all
of the political subdivision’s levies under subparagraph (1).
(3) The combined amount of the proposed property tax dollars
to be certified for all of the political subdivision’s levies
for the budget year and the proposed combined property tax rate
per one thousand dollars for such levies.
(4) If the proposed property tax dollars specified
under subparagraph (3) exceeds the current fiscal year’s
actual property tax dollars certified for levy specified in
subparagraph (1), a detailed statement of the major reasons for
the increase, including the specific purposes or programs for
which the political subdivision is proposing an increase.
(5) An example comparing the amount of property taxes on
a residential property with an actual value of one hundred
thousand dollars in the current fiscal year and such amount
on the residential property using the proposed property
tax dollars for the budget year, including the percentage
difference in such amounts.
(6) An example comparing the amount of property taxes
on a commercial property with an actual value of one hundred
thousand dollars in the current fiscal year and such amount on
the commercial property using the proposed property tax dollars
for the budget year, including the percentage difference in
such amounts.
(7) The political subdivision’s percentage of total
property taxes certified for levy in the owner’s or taxpayer’s
taxing district in the current fiscal year among all taxing
authorities.
(8) The date, time, and location of the political
subdivision’s public hearing required under subsection 4.
(9) Information on how to access on the political
subdivision’s internet site the political subdivision’s
statements under this section and other budget documents for
prior fiscal years.
3. The department of management shall prescribe the form
-38-for the report required under subsection 2, paragraph “a”, the
statements required to be mailed under subsection 2, paragraph
“b”, and the public hearing notice required under subsection 4,
paragraph “b”.
4. a. Each political subdivision shall set a time and
place for a public hearing on the political subdivision’s
proposed property tax amount for the budget year and the
political subdivision’s information included in the statements
under subsection 2. At the hearing, the governing body
of the political subdivision shall receive oral or written
testimony from any resident or property owner of the political
subdivision. This public hearing shall be separate from
any other meeting of the governing body of the political
subdivision, including any other meeting or public hearing
relating to the political subdivision’s budget, and other
business of the political subdivision that is not related to
the proposed property tax amounts and the information in the
statements shall not be conducted at the public hearing. After
all testimony has been received and considered, the governing
body may decrease, but not increase, the proposed property tax
amount to be included in the political subdivision’s budget.
b. (1) If the political subdivision is a county, notice
of the public hearing shall be published not less than ten
nor more than twenty days prior to the hearing in the county
newspapers selected under chapter 349.
(2) If the political subdivision is a city, notice of the
public hearing shall be published not less than ten nor more
than twenty days prior to the hearing in a newspaper published
at least once weekly and having general circulation in the
city. However, if the city has a population of two hundred or
less, publication may be made by posting in three public places
in the city.
(3) If the political subdivision is a school district,
notice of the public hearing shall be published not less
than ten nor more than twenty days prior to the hearing in
-39-a newspaper published in the school district, if any, and if
not, then in a newspaper of general circulation in the school
district.
c. Notice of the hearing shall also be posted and clearly
identified on the political subdivision’s internet site
for public viewing beginning on the date of the newspaper
publication and shall be maintained on the political
subdivision’s internet site with all such prior year notices
and copies of the statements mailed under subsection 2.
Additionally, if the political subdivision maintains a social
media account on one or more social media applications, the
public hearing notice or an electronic link to the public
hearing notice shall be posted on each such account on the same
day as the publication of the notice.
Sec. 65. Section 24.3, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
A municipality shall not certify or levy in any fiscal year
any tax on property subject to taxation unless and until the
following estimates have been made, filed, and considered,
and for school districts, the individual statements have been
mailed and public hearings held, as provided in this chapter:
Sec. 66. Section 24.10, Code 2023, is amended to read as
follows:
24.10 Levies void.
The verified proof of the publication of the notice under
section 24.9 shall be filed in the office of the county auditor
and preserved by the auditor. A levy shall not be valid unless
and until that notice is such notices are published, mailed,
and filed. However, failure of an owner or taxpayer to receive
a statement under section 24.2A shall not invalidate a levy.
Sec. 67. Section 24.17, subsection 1, Code 2023, is amended
to read as follows:
1. The local budgets of the various political subdivisions
shall be certified by the chairperson of the certifying
board or levying board, as the case may be, in duplicate to
-40-the county auditor not later than March 15 April 30 of each
year on forms, and pursuant to instructions, prescribed by
the department of management. However, if the political
subdivision is a county or a city, its budget shall be
certified not later than March 31 of each year, and if the
political subdivision is a school district, as defined in
section 257.2, its budget shall be certified not later than
April 15 of each year.
Sec. 68. Section 24.27, subsection 1, Code 2023, is amended
to read as follows:
1. Not later than March 25, or April 10 for a county or
a city, or April 25 if the municipality is a school district
May 10, a number of persons in any municipality political
subdivision equal to one-fourth of one percent of those voting
for the office of governor, at the last general election in the
municipality political subdivision, but the number shall not be
less than ten, and the number need not be more than one hundred
persons, who are affected by any proposed budget, expenditure
or tax levy, or by any item thereof, may appeal from any
decision of the certifying board or the levying board by filing
with the county auditor of the county in which the municipal
corporation political subdivision is located, a written protest
setting forth their objections to the budget, expenditure or
tax levy, or to one or more items thereof, and the grounds for
their objections. If a budget is certified after March 15, or
March 31 in the case of a county or a city, or April 15 in the
case of a school district 30, all appeal time limits shall be
extended to correspond to allowances for a timely filing.
Sec. 69. Section 24.28, Code 2023, is amended to read as
follows:
24.28 Hearing on protest.
The state board, within a reasonable time, shall fix a date
for an initial hearing on the protest and may designate a
deputy to hold the hearing, which shall be held in the county
or in one of the counties in which the municipality political
-41-subdivision is located. Notice of the time and place of the
hearing shall be given by certified mail to the appropriate
officials of the local government and to the first ten property
owners whose names appear upon the protest, at least five
days before the date fixed for the hearing. At all hearings,
the burden shall be upon the objectors with reference to any
proposed item in the budget which was included in the budget
of the previous year and which the objectors propose should
be reduced or excluded; but the burden shall be upon the
certifying board or the levying board, as the case may be,
to show that any new item in the budget, or any increase in
any item in the budget, is necessary, reasonable, and in the
interest of the public welfare.
Sec. 70. Section 24.48, subsection 4, Code 2023, is amended
to read as follows:
4. The city finance committee shall have officially
notified any city of its approval, modification or rejection
of the city’s appeal of the decision of the director of the
department of management regarding a city’s request for a
suspension of the statutory property tax levy limitation prior
to thirty-five days before March 31 April 30.
Sec. 71. Section 275.29, subsection 1, Code 2023, is amended
to read as follows:
1. Between July 1 and July 20, or on a date determined by
agreement of the initial board and the boards of districts
receiving territory of the school districts affected, but not
later than August 30, the initial board shall meet with the
boards of districts receiving territory of the school districts
affected, for the purpose of reaching joint agreement on an
equitable division of the assets and an equitable distribution
of the liabilities of the school districts affected. In
addition, if outstanding general obligation indebtedness is in
existence in any district, the initial board of directors of
the newly formed school district shall meet with the boards of
all school districts affected prior to April 15 30 prior to
-42-the school year the reorganization is effective to determine
the distribution of liability for payment of the general
obligation bonded indebtedness between the districts so that
the newly formed district may certify its budget under the
procedures specified in chapter 24. The boards shall consider
the mandatory levy required in section 76.2 and shall assure
the satisfaction of outstanding obligations. If a school
district affected by the reorganization has outstanding bonds
issued under section 423E.5 or 423F.4, the joint agreement
shall assure that the estimated revenue under section 423F.2
for each district to which liability for payment of such bonds
is assigned is sufficient for the payment of principal and
interest on the outstanding bonds required to be paid in the
budget year following reorganization.
Sec. 72. Section 298.2, subsection 1, paragraph b, Code
2023, is amended to read as follows:
b. For school budget years beginning on or after July 1,
2015, a school district may by resolution of the board of
directors adopted prior to April 15 30 preceding the budget
year impose a physical plant and equipment levy at a rate in
excess of the levy rate limitations under paragraph “a” if the
board has refunded or refinanced a loan agreement entered into
under section 297.36 and such refunding or refinancing complies
with the maturity period authorized under section 297.36,
subsection 1, paragraph “c”, and results in a lower amount of
interest on the amount of the loan agreement. However, the
rate imposed by a school district under this paragraph shall
not exceed the rate imposed during the budget year in which
the loan agreement was refunded or refinanced. Authorization
to exceed the levy rate limitations of paragraph “a” shall
terminate upon the maturity of the loan agreement after
refunding or refinancing. Upon adoption of the resolution
under this paragraph “b”, the board shall comply with the
requirements of section 297.36, subsection 1, paragraph “b”.
Sec. 73. Section 298.2, subsection 3, Code 2023, is amended
-43-to read as follows:
3. The board of directors of a school district may certify
for levy by April 15 30 of a school year a tax on all taxable
property in the school district for the regular physical plant
and equipment levy.
Sec. 74. Section 298.2, subsection 4, paragraph b, Code
2023, is amended to read as follows:
b. If a combination of a property tax and income surtax is
used, by April 15 30 of the previous school year, the board
shall certify the percent of the income surtax to be imposed
and the amount to be raised to the department of management
and the department of management shall establish the rate of
the property tax and income surtax for the school year. The
physical plant and equipment property tax and income surtax
shall be levied or imposed, collected, and paid to the school
district in the manner provided for the instructional support
program in sections 257.21 through 257.26.
Sec. 75. Section 298.4, subsection 1, unnumbered paragraph
1, Code 2023, is amended to read as follows:
The board of directors of a school district may certify for
levy by April 15 30 of a school year, a tax on all taxable
property in the school district for a district management levy.
The revenue from the tax levied in this section shall be placed
in the district management levy fund of the school district.
The district management levy shall be expended only for the
following purposes:
Sec. 76. Section 298.10, subsection 1, Code 2023, is amended
to read as follows:
1. The board of directors of a school district may certify
for levy by April 15 30 of a school year, a tax on all taxable
property in the school district in order to raise an amount
for a necessary cash reserve for a school district’s general
fund. The amount raised for a necessary cash reserve does not
increase a school district’s authorized expenditures as defined
in section 257.7.
-44- Sec. 77. Section 300.2, subsection 2, Code 2023, is amended
to read as follows:
2. If a majority of the votes cast upon the proposition is
in favor of the proposition, the board shall certify the amount
required for a fiscal year to the county board of supervisors
by April 15 30 of the preceding fiscal year. The board of
supervisors shall levy the amount certified. The amount shall
be placed in the public education and recreation levy fund of
the district and shall be used only for the purposes specified
in this chapter.
Sec. 78. Section 303.66, subsection 2, Code 2023, is amended
to read as follows:
2. Taxes levied by the board shall be certified on or
before the first day of March April 30 to the county auditor
of each county where any of the property included within the
territorial limits of the land use district is located, and
shall be placed upon the tax list for the current year. The
county treasurer shall collect the taxes in the same manner as
other taxes. When delinquent, the taxes shall draw the same
interest and penalties as other taxes. All taxes so levied and
collected shall be paid over to the treasurer of the district.
Sec. 79. Section 309.22, subsection 1, Code 2023, is amended
to read as follows:
1. On or before the fifteenth day of April May 15 of
each year the board of supervisors, with the assistance of
the county engineer, shall, subject to the approval of the
department, adopt a secondary road construction program which
shall include a project accomplishment list for the next
fiscal year, and a project priority list for the succeeding
four fiscal years based upon the construction funds, local
secondary and farm-to-market, estimated to be available for the
period. Subject to departmental approval, any project on the
approved priority list may be advanced to and constructed in
the accomplishment year and the project accomplishment list may
be revised due to unforeseen conditions.
-45- Sec. 80. Section 331.422, unnumbered paragraph 1, Code
2023, is amended to read as follows:
Subject to this section and sections 331.423 through 331.426
or as otherwise provided by state law, the board of each county
shall certify property taxes annually at its March April
session to be levied for county purposes as follows:
Sec. 81. Section 331.434, unnumbered paragraph 1, Code
2023, is amended to read as follows:
Annually, the board of each county, subject to section
331.403, subsection 4, sections 331.423 through 331.426,
section 331.433A, the applicable portions of chapter 24, and
other applicable state law, shall prepare and adopt a budget,
certify taxes, and provide appropriations as follows:
Sec. 82. Section 331.434, subsection 3, Code 2023, is
amended to read as follows:
3. Following, and not until, adoption of the resolution
under section 331.433A, the requirements of section 24.2A are
completed, the board shall set a time and place for a public
hearing on the budget before the final certification date and
shall publish notice of the hearing not less than ten nor more
than twenty days prior to the hearing in the county newspapers
selected under chapter 349. A summary of the proposed budget
and a description of the procedure for protesting the county
budget under section 331.436, in the form prescribed by the
director of the department of management, shall be included
in the notice. Proof of publication of the notice under this
subsection 3and a copy of the resolution adopted under section
331.433A shall be filed with and preserved by the county
auditor. A levy is not valid unless and until the notice is
published and the notice and resolution adopted under section
331.433A are filed individual statements under section 24.2A
are mailed. The department of management shall prescribe the
form for the public hearing notice for use by counties.
Sec. 83. Section 331.434, subsection 5, paragraph a, Code
2023, is amended to read as follows:
-46- a. After the hearing, the board shall adopt by resolution
a budget and certificate of taxes for the next fiscal year
and shall direct the auditor to properly certify and file the
budget and certificate of taxes as adopted. The board shall
not adopt a tax in excess of the estimate published or the
applicable amounts specified in the resolution adopted under
section 331.433A, except a tax which is approved by a vote of
the people, and a greater tax than that adopted shall not be
levied or collected. A county budget and certificate of taxes
adopted for the following fiscal year becomes effective on the
first day of that year.
Sec. 84. Section 331.434, subsection 7, Code 2023, is
amended to read as follows:
7. Taxes levied by a county whose budget is certified after
March 31 April 30 shall be limited to the prior year’s budget
amount. However, this penalty may be waived by the director
of the department of management if the county demonstrates
that the March 31 deadline was missed because of circumstances
beyond the control of the county.
Sec. 85. Section 331.435, subsection 2, Code 2023, is
amended to read as follows:
2. The board shall prepare and adopt a budget amendment in
the same manner as the original budget as provided in section
331.434, but excluding the requirements for adoption of the
resolution under section 331.433A mailing individual statements
under section 24.2A, and the amendment is subject to protest as
provided in section 331.436, except that the director of the
department of management may by rule provide that amendments
of certain types or up to certain amounts may be made without
public hearing and without being subject to protest. A county
budget for the ensuing fiscal year shall be amended by May 31
to allow time for a protest hearing to be held and a decision
rendered before June 30. An amendment of a budget after May
31 which is properly appealed but without adequate time for
hearing and decision before June 30 is void.
-47- Sec. 86. Section 331.436, Code 2023, is amended to read as
follows:
331.436 Protest.
Protests to the adopted budget must be made in accordance
with sections 24.27 through 24.32 as if the county were the
municipality under those sections except that the protest must
be filed no later than April May 10 and the number of people
necessary to file a protest under this section shall not be
less than one hundred.
Sec. 87. Section 347.13, subsection 12, Code 2023, is
amended to read as follows:
12. Fix the amount necessary for the improvement and
maintenance of the hospital and for support of ambulance
service during the ensuing fiscal year, and certify the amount
to the county auditor before March 15 April 30 of each year,
subject to any limitation in section 347.7.
Sec. 88. Section 358.18, subsection 2, as amended by 2023
Iowa Acts, House File 541, section 1, if enacted, is amended
to read as follows:
2. All taxes thus levied by the board of trustees shall
be certified by the clerk on or before March 15 April 30 to
the county auditor of each county wherein any of the property
included within the territorial limits of the sanitary district
is located, and shall be placed upon the tax list for the
current fiscal year by the auditor or auditors. The county
treasurer, or treasurers, of more than one county, shall
collect all taxes so levied in the same manner as other taxes,
and when delinquent the taxes shall draw the same interest.
All taxes levied and collected shall be paid over by the
officer collecting the taxes to the treasurer of the sanitary
district.
Sec. 89. Section 358C.14, subsection 2, Code 2023, is
amended to read as follows:
2. All taxes thus levied by the board shall be certified by
the clerk on or before March 1 April 30 to the county auditor
-48-of each county in which any of the property included within
the territorial limits of the district is located, and shall
be placed upon the tax list for the current fiscal year by the
auditor. The county treasurer of more than one county shall
collect all taxes so levied in the same manner as other taxes,
and when delinquent the taxes shall draw the same interest.
All taxes levied and collected shall be paid over by the
officer collecting the taxes to the treasurer of the district.
Sec. 90. Section 359.49, subsections 7 and 9, Code 2023, are
amended to read as follows:
7. After the meeting on the proposed budget, the board of
trustees shall adopt by resolution a budget for at least the
next fiscal year, and the clerk shall certify the necessary
tax levy for the next fiscal year to the county auditor and
the county board of supervisors by March 15 April 30. The tax
levy certified may be less than but shall not be more than
the amount estimated in the proposed budget submitted at the
meeting. Two copies each of the detailed budget as adopted and
of the certified tax levy must be transmitted to the county
auditor by March 15 April 30.
9. Taxes from a township levy shall be collected but not
disbursed by the county to a township until copies of the
township budget are transmitted to the county auditor as
required in subsection 7. If a township fails to certify
property taxes by March 15 April 30, the amount of taxes
collected by the county for the township shall be the amount
collected for the township in the previous fiscal year to the
extent that it does not exceed the applicable levy rate limits
in this chapter. However, that amount may not exceed the
amount the township could collect based on property assessments
for the fiscal year for which the township failed to certify
property taxes.
Sec. 91. Section 384.2, subsection 1, Code 2023, is amended
to read as follows:
1. Except as otherwise provided for special charter cities,
-49-a city’s fiscal year shall be as provided in section 24.2,
subsection 3. All city property taxes must be certified by
a city to the county auditor on or before March 31 April
30 of each year, unless otherwise provided by state law.
However, municipal utilities, if not supported by taxation
or the proceeds of outstanding indebtedness payable from
taxes may, with the council’s consent, choose to operate on a
fiscal year which is the calendar year. The receipt by the
utility of payments from other governmental funds for public
fire protection, street lighting, or other public use of the
utility’s services shall not be deemed support by taxation.
After notice and hearing in the same manner as required for the
city’s regular budget under section 384.16, the utility budget
must be approved by resolution of the council not later than
twenty days prior to the beginning of the calendar year for
which the budget applies.
Sec. 92. Section 384.16, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
Annually, a city that has satisfied the requirements of
section 384.15A andsection 384.22, subsection 3, and the
applicable portions of chapter 24, shall prepare and adopt a
budget, and shall certify taxes as follows:
Sec. 93. Section 384.16, subsections 3, 5, and 6, Code 2023,
are amended to read as follows:
3. Following, and not until, adoption of the resolution
under section 384.15A, requirements of section 24.2A are
completed, the council shall set a time and place for public
hearing on the budget before the final certification date and
shall publish notice of the hearing not less than ten nor more
than twenty days before the hearing in a newspaper published
at least once weekly and having general circulation in the
city. However, if the city has a population of two hundred
or less, publication may be made by posting in three public
places in the city. A summary of the proposed budget and a
description of the procedure for protesting the city budget
-50-under section 384.19, in the form prescribed by the director of
the department of management, shall be included in the notice.
Proof of publication of the notice under this subsection 3and
a copy of the resolution adopted under section 384.15A must be
filed with the county auditor. The department of management
shall prescribe the form for the public hearing notice for use
by cities.
5. After the hearing, the council shall adopt by resolution
a budget for at least the next fiscal year, and the clerk
shall certify the necessary tax levy for the next fiscal year
to the county auditor and the county board of supervisors.
The tax levy certified may be less than but not more than
the amount estimated in the proposed budget submitted at
the final hearing or the applicable amount specified in the
resolution adopted under section 384.15A, unless an additional
tax levy is approved at a city election. Two copies each of
the detailed budget as adopted and of the tax certificate must
be transmitted to the county auditor, who shall complete the
certificates and transmit a copy of each to the department of
management.
6. Taxes levied by a city whose budget is certified after
March 31 April 30 shall be limited to the prior year’s budget
amount. However, this penalty may be waived by the director of
the department of management if the city demonstrates that the
March 31 deadline was missed because of circumstances beyond
the control of the city.
Sec. 94. Section 384.17, Code 2023, is amended to read as
follows:
384.17 Levy by county.
At the time required by law, the county board of supervisors
shall levy the taxes necessary for each city fund for the
following fiscal year. The levy must be as shown in the
adopted city budget and as certified by the clerk, subject to
any changes made after a protest hearing, and any additional
tax rates approved at a city election. A city levy is not valid
-51-until proof of publication or posting of notice of a budget
hearing under section 384.16, subsection 3, and the notice and
resolution adopted under section 384.15A are is filed with
the county auditor and individual statements are mailed under
section 24.2A.
Sec. 95. Section 384.18, subsection 2, Code 2023, is amended
to read as follows:
2. A budget amendment must be prepared and adopted in the
same manner as the original budget, as provided in section
384.16, excluding the requirement for the mailing of individual
statements under section 24.2A, and is subject to protest as
provided in section 384.19, except that the committee may by
rule provide that amendments of certain types or up to certain
amounts may be made without public hearing and without being
subject to protest. A city budget shall be amended by May
31 of the current fiscal year to allow time for a protest
hearing to be held and a decision rendered before June 30. The
amendment of a budget after May 31, which is properly appealed
but without adequate time for hearing and decision before June
30 is void.
Sec. 96. REPEAL. Sections 331.433A and 384.15A, Code 2023,
are repealed.
Sec. 97. IMPLEMENTATION. Section 25B.2, subsection 3,
shall not apply to this division of this Act.
Sec. 98. APPLICABILITY. This division of this Act applies
to political subdivision budgets for fiscal years beginning on
or after July 1, 2024.
DIVISION XI
DRIVER’S LICENSES AND NONOPERATOR’S IDENTIFICATION CARDS
Sec. 99. Section 321M.9, subsection 1, paragraph a, Code
2023, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH. (4) The ten-dollar convenience fee
collected pursuant to subsection 1A.
Sec. 100. Section 321M.9, Code 2023, is amended by adding
the following new subsection:
-52- NEW SUBSECTION. 1A. Convenience fee. A county authorized
to issue driver’s licenses under this chapter may charge, in
addition to any other fee imposed by law, a convenience fee for
the issuance or renewal of a driver’s license or nonoperator’s
identification card to a person who is not a resident of the
county, unless that person pays property tax to the county
and provides proof of payment such as a receipt as provided
in section 445.5, subsection 6, or another form of proof as
determined by the county. The convenience fee shall be ten
dollars.
DIVISION XII
writing fees
Sec. 101. Section 321G.27, subsection 1, paragraphs a, b,
and c, Code 2023, are amended by striking the paragraphs.
Sec. 102. Section 321G.27, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. 0d. The county recorder shall collect
a writing fee of two dollars for each privilege under this
chapter.
Sec. 103. Section 321G.29, subsection 3, Code 2023, is
amended to read as follows:
3. An owner of a snowmobile shall apply to the county
recorder for issuance of a certificate of title within thirty
days after acquisition. The application shall be on forms
the department prescribes and accompanied by the required fee
specified in section 321G.30 and the writing fee specified in
section 321G.27. The application shall include a certification
signed in writing containing substantially the representation
that statements made are true and correct to the best of the
applicant’s knowledge, information, and belief, under penalty
of perjury. The application shall contain the date of sale
and gross price of the snowmobile or the fair market value if
no sale immediately preceded the transfer and any additional
information the department requires. If the application is
made for a snowmobile last previously registered or titled in
-53-another state or foreign country, the application shall contain
this information and any other information the department
requires.
Sec. 104. Section 321G.31, Code 2023, is amended to read as
follows:
321G.31 Transfer or repossession by operation of law.
1. If ownership of a snowmobile is transferred by
operation of law, such as by inheritance, order in bankruptcy,
insolvency, replevin, or execution sale, the transferee, within
thirty days after acquiring the right to possession of the
snowmobile, shall mail or deliver to the county recorder of
the transferee’s county of residence satisfactory proof of
ownership as the county recorder requires, together with an
application for a new certificate of title, and the required
fee, plus the writing fee specified in section 321G.27.
However, if the transferee is the surviving spouse of the
deceased owner, the county recorder shall waive the required
fee fees.
2. If a lienholder repossesses a snowmobile by operation of
law and holds it for resale, the lienholder shall secure a new
certificate of title and shall pay the required fee, plus the
writing fee specified in section 321G.27.
Sec. 105. Section 321G.32, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. c. The application shall be accompanied by
the writing fee specified in section 321G.27.
Sec. 106. Section 321I.29, subsection 1, paragraphs a, b,
and c, Code 2023, are amended by striking the paragraphs.
Sec. 107. Section 321I.29, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. 0d. The county recorder shall collect
a writing fee of two dollars for each privilege under this
chapter.
Sec. 108. Section 321I.31, subsection 3, Code 2023, is
amended to read as follows:
-54- 3. An owner of an all-terrain vehicle shall apply to
the county recorder for issuance of a certificate of title
within thirty days after acquisition. The application shall
be on forms the department prescribes and accompanied by the
required fee specified in section 321I.32 and the writing fee
specified in section 321I.29. The application shall include a
certification signed in writing containing substantially the
representation that statements made are true and correct to the
best of the applicant’s knowledge, information, and belief,
under penalty of perjury. The application shall contain the
date of sale and gross price of the all-terrain vehicle or the
fair market value if no sale immediately preceded the transfer
and any additional information the department requires. If the
application is made for an all-terrain vehicle last previously
registered or titled in another state or foreign country,
the application shall contain this information and any other
information the department requires.
Sec. 109. Section 321I.33, Code 2023, is amended to read as
follows:
321I.33 Transfer or repossession by operation of law.
1. If ownership of an all-terrain vehicle is transferred by
operation of law, such as by inheritance, order in bankruptcy,
insolvency, replevin, or execution sale, the transferee,
within thirty days after acquiring the right to possession of
the all-terrain vehicle, shall mail or deliver to the county
recorder of the transferee’s county of residence satisfactory
proof of ownership as the county recorder requires, together
with an application for a new certificate of title, and
the required fee, plus the writing fee specified in section
321I.29. However, if the transferee is the surviving spouse
of the deceased owner, the county recorder shall waive the
required fee fees.
2. If a lienholder repossesses an all-terrain vehicle by
operation of law and holds it for resale, the lienholder shall
secure a new certificate of title and shall pay the required
-55-fee, plus the writing fee specified in section 321I.29.
Sec. 110. Section 321I.34, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. c. The application shall be accompanied by
the writing fee specified in section 321I.29.
Sec. 111. Section 462A.53, Code 2023, is amended to read as
follows:
462A.53 Amount of writing fees.
A writing fee of one dollar and twenty-five cents two dollars
for each privilege shall be collected by the county recorder.
Sec. 112. Section 462A.77, subsection 4, Code 2023, is
amended to read as follows:
4. Every owner of a vessel subject to titling under this
chapter shall apply to the county recorder for issuance of a
certificate of title for the vessel within thirty days after
acquisition. The application shall be on forms the department
prescribes, and accompanied by the required fee specified
in section 462A.78 and the writing fee specified in section
462A.53. The application shall be signed and shall include a
certification signed in writing containing substantially the
representation that statements made are true and correct to the
best of the applicant’s knowledge, information, and belief,
under penalty of perjury. The application shall contain
the date of sale and gross price of the vessel or the fair
market value if no sale immediately preceded the transfer, and
any additional information the department requires. If the
application is made for a vessel last previously registered or
titled in another state or foreign country, it shall contain
this information and any other information the department
requires.
Sec. 113. Section 462A.82, subsections 1 and 2, Code 2023,
are amended to read as follows:
1. If ownership of a vessel is transferred by operation of
law, such as by inheritance, order in bankruptcy, insolvency,
replevin, execution sale, or in compliance with section 578A.7,
-56-the transferee, within thirty days after acquiring the right
to possession of the vessel by operation of law, shall mail or
deliver to the county recorder satisfactory proof of ownership
as the county recorder requires, together with an application
for a new certificate of title, and the required fee, plus the
writing fee specified in section 462A.53. However, if the
transferee is the surviving spouse of the deceased owner, the
county recorder shall waive the required fee fees. A title tax
is not required on these transactions.
2. If a lienholder repossesses a vessel by operation of
law and holds it for resale, the lienholder shall secure a new
certificate of title and shall pay the required fee, plus the
writing fee specified in section 462A.53.
Sec. 114. Section 462A.84, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. c. The application shall be accompanied by
the writing fee specified in section 462A.53.
DIVISION XIII
BOND ELECtions
Sec. 115. Section 28E.16, Code 2023, is amended to read as
follows:
28E.16 Election for bonds.
When bonds which require a vote of the people are to be
issued for financing joint facilities of a county and one or
more cities within the county, pursuant to an agreement made
under the authority of this chapter, or pursuant to other
provisions of law, the board of supervisors and the council of
each city shall arrange for a single election on the question
of issuing the bonds, but if the county and the cities are
proposing to make separate bond issues, the ballot shall
contain separate questions, one to be voted upon by all voters
of the county, and one or more to be voted upon only by the
voters of the city which is to make a separate bond issue. All
elections on the question of issuing the bonds shall be held on
the date specified in section 39.2, subsection 4, paragraph “d”.
-57- Sec. 116. Section 39.2, subsection 4, Code 2023, is amended
to read as follows:
4. Unless otherwise provided by law, special elections on
public measures are limited to the following dates:
a. For Except as provided in paragraph “d”, for a county, in
an odd-numbered year, the first Tuesday in March, the second
Tuesday in September, or the first Tuesday after the first
Monday in November. For a county, in an even-numbered year,
the first Tuesday in March, the second Tuesday in September, or
the first Tuesday after the first Monday in November.
b. For Except as provided in paragraph “d”, for a city, in
an odd-numbered year, the first Tuesday in March, the second
Tuesday in September, or the first Tuesday after the first
Monday in November. For a city, in an even-numbered year, the
first Tuesday in March or the second Tuesday in September.
c. For Except as provided in paragraph “d”, for a school
district or merged area, in the odd-numbered year, the first
Tuesday in March, the second Tuesday in September, or the first
Tuesday after the first Monday in November. For a school
district or merged area, in the even-numbered year, the first
Tuesday in March, or the second Tuesday in September.
d. For any political subdivision of this state, if the
special election is in whole or in part for the question of
issuing bonds or other indebtedness, the first Tuesday after
the first Monday in November.
Sec. 117. NEW SECTION. 39.5 Notice of bond election.
In addition to any other notice related to the election
required by law to be published, posted, or provided, if the
election is subject to section 39.2, subsection 4, paragraph
“d”, the commissioner shall not less than ten nor more than
twenty days before the day of each election mail to each
registered voter of the applicable jurisdiction a notice of the
election that includes the full text of the public measure to
be voted upon at the election.
Sec. 118. Section 75.1, subsection 1, paragraph a, Code
-58-2023, is amended to read as follows:
a. When a proposition to authorize an issuance of bonds
by a county, township, school corporation, city, or by any
local board or commission, is submitted to the electors, such
proposition shall not be deemed carried or adopted, anything
in the statutes to the contrary notwithstanding, unless the
vote in favor of such authorization is equal to at least sixty
percent of the total vote cast for and against said proposition
at said election. All elections on such proposition shall
be held on the date specified in section 39.2, subsection 4,
paragraph “d”.
Sec. 119. Section 75.1, subsection 2, Code 2023, is amended
by striking the subsection.
Sec. 120. Section 279.39, Code 2023, is amended to read as
follows:
279.39 School buildings.
The board of any school corporation shall establish
attendance centers and provide suitable buildings for each
school in the district and may at the regular or a special
meeting resolve to submit to the registered voters of the
district at an election held on a date specified in section
39.2, subsection 4, paragraph “c”, the question of voting a tax
or authorizing the board to issue bonds, or both.
Sec. 121. Section 296.3, Code 2023, is amended to read as
follows:
296.3 Election called.
Within ten days of receipt of a petition filed under section
296.2, the president of the board of directors shall call a
meeting of the board. The meeting shall be held within thirty
days after the petition was received. At the meeting, the
board shall call the election, fixing the time of the election,
which may be at the time and place of holding the regular
school election as required by section 39.2, subsection 4,
paragraph “d”. However, if the board determines by unanimous
vote that the proposition or propositions requested by a
-59-petition to be submitted at an election are grossly unrealistic
or contrary to the needs of the school district, no election
shall be called. If more than one petition has been received
by the time the board meets to consider the petition triggering
the meeting, the board shall act upon the petitions in the
order they were received at the meeting called to consider the
initial petition. The decision of the board may be appealed to
the state board of education as provided in chapter 290. The
president shall notify the county commissioner of elections of
the time of the election.
Sec. 122. Section 298.21, unnumbered paragraph 1, Code
2023, is amended to read as follows:
The board of directors of any school corporation when
authorized by the voters at an election held on a date
specified in section 39.2, subsection 4, paragraph “c” “d”,
may issue the negotiable, interest-bearing school bonds of the
corporation for borrowing money for any or all of the following
purposes:
Sec. 123. Section 331.442, subsection 3, Code 2023, is
amended to read as follows:
3. a. All elections held pursuant to this section shall
be held on the date specified in section 39.2, subsection 4,
paragraph “d”.
b. Notice of the election shall be given by publication as
specified in section 331.305. At the election the ballot used
for the submission of the proposition shall be in substantially
the form for submitting special questions at general elections.
Sec. 124. Section 346.27, subsection 10, paragraph a, Code
2023, is amended to read as follows:
a. After the incorporation of an authority, and before the
sale of any issue of revenue bonds, except refunding bonds, the
authority shall submit to the voters the question of whether
the authority shall issue and sell revenue bonds. The ballot
shall state the amount of the bonds and the purposes for
which the authority is incorporated. All registered voters
-60-of the county shall be entitled to vote on the question. The
question may shall be submitted at an election held on a the
date specified in section 39.2, subsection 4, paragraph “a” or
“b”, as applicable “d”. An affirmative vote of a majority of
the votes cast on the question is required to authorize the
issuance and sale of revenue bonds.
Sec. 125. Section 357C.10, Code 2023, is amended to read as
follows:
357C.10 Bonds in anticipation of revenue.
Benefited street lighting districts may anticipate the
collection of taxes by the levy herein provided, and to carry
out the purposes of this chapter may issue bonds payable
in not more than ten equal installments, with the rate of
interest thereon not exceeding that permitted by chapter 74A.
No indebtedness shall be incurred under this chapter until
authorized by an election. Such election shall be held and
notice given in the same manner as the election provided herein
for the authorization of a tax levy, and the same sixty percent
vote shall be necessary to authorize indebtedness. Both
Subject to section 39.2, subsection 4, both propositions may be
submitted to the voters in the same election.
Sec. 126. Section 357D.11, Code 2023, is amended to read as
follows:
357D.11 Bonds in anticipation of revenue.
A district may anticipate the collection of taxes by the
levy authorized in this chapter, and to carry out the purposes
of this chapter may issue bonds payable in not more than ten
equal installments with the rate of interest not exceeding
that permitted by chapter 74A. An indebtedness shall not be
incurred under this chapter until authorized by an election.
The election shall be held and notice given in the same manner
as provided in section 357D.8, and the same sixty percent vote
shall be necessary to authorize indebtedness. Both Subject to
section 39.2, subsection 4, both propositions may be submitted
to the voters at the same election.
-61- Sec. 127. Section 357E.11, Code 2023, is amended to read as
follows:
357E.11 Bonds in anticipation of revenue.
A district, other than a combined district, may anticipate
the collection of taxes by the levy authorized in this chapter,
and to carry out the purposes of this chapter may issue bonds
payable in not more than twenty equal installments with the
rate of interest not exceeding that permitted by chapter 74A.
An indebtedness shall not be incurred under this section
until authorized by an election. The election shall be held
and notice given in the same manner as provided in section
357E.8, and the same majority vote is necessary to authorize
indebtedness. Both Subject to section 39.2, subsection 4,
both propositions may be submitted to the voters at the same
election.
Sec. 128. Section 357E.11A, subsection 3, Code 2023, is
amended to read as follows:
3. Except for the issuance of refunding bonds, an
indebtedness shall not be incurred under this section until
authorized by an election. The election shall be held and
notice given in the same manner as provided in section 357E.8,
except that a proposition to authorize indebtedness is
approved if sixty percent of those voting on the proposition
vote in favor of the proposition. A Subject to section
39.2, subsection 4, a proposition for the authorization
of indebtedness may be submitted to the voters at the same
election as the election under section 357E.8.
Sec. 129. Section 357F.11, Code 2023, is amended to read as
follows:
357F.11 Bonds in anticipation of revenue.
A district may anticipate the collection of taxes authorized
in this chapter, and to carry out the purposes of this chapter
may issue bonds payable in not more than ten equal installments
with the rate of interest not exceeding that permitted by
chapter 74A. An indebtedness shall not be incurred under this
-62-chapter until authorized by an election. The election shall
be held and notice given in the same manner as provided in
section 357F.8, and a sixty percent vote shall be necessary
to authorize indebtedness. Both Subject to section 39.2,
subsection 4, both propositions may be submitted to the voters
at the same election.
Sec. 130. Section 357G.11, Code 2023, is amended to read as
follows:
357G.11 Bonds in anticipation of revenue.
A district may anticipate the collection of taxes authorized
in this chapter, and to carry out the purposes of this chapter
may issue bonds payable in not more than ten equal installments
with the rate of interest not exceeding that permitted by
chapter 74A. An indebtedness shall not be incurred under this
chapter until authorized by an election. The election shall
be held and notice given in the same manner as provided in
section 357G.8, and a sixty percent vote shall be necessary
to authorize indebtedness. Both Subject to section 39.2,
subsection 4, both propositions may be submitted to the voters
at the same election.
Sec. 131. Section 357I.12, Code 2023, is amended to read as
follows:
357I.12 Bonds in anticipation of revenue.
A district may anticipate the collection of taxes by the
levy authorized in this chapter, and to carry out the purposes
of this chapter may issue bonds payable in not more than ten
equal installments with the rate of interest not exceeding
that permitted by chapter 74A. An indebtedness shall not be
incurred under this chapter until authorized by an election.
The election shall be held and notice given in the same manner
as provided in section 357I.8, and the same sixty percent vote
shall be necessary to authorize indebtedness. Both Subject to
section 39.2, subsection 4, both propositions may be submitted
to the voters at the same election.
Sec. 132. Section 384.26, subsections 2 and 3, Code 2023,
-63-are amended to read as follows:
2. Before the council may institute proceedings for the
issuance of bonds for a general corporate purpose, it shall
call a special city election to vote upon the question of
issuing the bonds. At the election the proposition must be
submitted in the following form:
Shall the ............ (insert the name of the city) issue
its bonds in an amount not exceeding the amount of $.... for
the purpose of ..........?
3. a. All elections held pursuant to this section shall
be held on the date specified in section 39.2, subsection 4,
paragraph “d”.
b. Notice of the election must be given by publication
as required by section 49.53 in a newspaper of general
circulation in the city. At the election the ballot used for
the submission of the proposition must be in substantially the
form for submitting special questions at general elections.
Sec. 133. Section 394.2, subsection 1, Code 2023, is amended
to read as follows:
1. It shall not be necessary to submit to the voters the
proposition of issuing bonds for refunding purposes, but prior
to the issuance of bonds for other purposes the council shall
submit to the voters of the city at a general election or a
regular city election on the date specified in section 39.2,
subsection 4, paragraph “d”, the proposition of issuing the
bonds. Notice of the election on the proposition of issuing
bonds shall be published as required by section 49.53. The
notice shall also state whether or not an admission fee is to
be charged by the zoo or zoological gardens.
Sec. 134. Section 423F.4, subsection 2, paragraph b, Code
2023, is amended to read as follows:
b. For bonds subject to the requirements of paragraph
“a”, if at any time prior to the fifteenth day following the
hearing, the secretary of the board of directors receives a
petition containing the required number of signatures and
-64-asking that the question of the issuance of such bonds be
submitted to the voters of the school district, the board shall
either rescind its adoption of the resolution or direct the
county commissioner of elections to submit the question to the
registered voters of the school district at an election held on
a the date specified in section 39.2, subsection 4, paragraph
“c” “d”. The petition must be signed by eligible electors equal
in number to not less than one hundred or thirty percent of
the number of voters at the last preceding election of school
officials under section 277.1, whichever is greater. If the
board submits the question at an election and a majority of
those voting on the question favors issuance of the bonds, the
board shall be authorized to issue the bonds.
Sec. 135. IMPLEMENTATION OF ACT. Section 25B.2, subsection
3, shall not apply to this division of this Act.
Sec. 136. APPLICABILITY. This division of this Act applies
July 1, 2023, for elections on propositions relating to the
issuing of bonds or other indebtedness occurring on or after
that date.
DIVISION XIV
COUNTY AND CITY FINANCING
Sec. 137. Section 8.6, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION. 17. County and city bond issuance. To
annually prepare and file with the general assembly by December
1 a report specifying the updated population thresholds as
adjusted under section 331.442, subsection 5, and section
384.26, subsection 5, and detailing the use of the bond
issuance procedures under section 331.442, subsection 5, and
section 384.26, subsection 5, including the usage of such
procedures by counties and cities based on the population-based
limitations and the amount of bonds issued for each such usage.
Sec. 138. Section 331.301, subsection 10, paragraph e,
subparagraph (1), Code 2023, is amended to read as follows:
(1) (a) The board must follow substantially the
-65-authorization procedures of section 331.443 to authorize
a lease or lease-purchase contract for personal property
which is payable from the general fund. The board must
follow substantially the authorization procedures of section
331.443 to authorize a lease or lease-purchase contract for
real property which is payable from the general fund if the
principal amount of the lease-purchase contract does not exceed
the following limits:
(i) Four Five hundred twenty thousand dollars in a county
having a population of twenty-five thousand or less.
(ii) Five Six hundred fifty thousand dollars in a county
having a population of more than twenty-five thousand but not
more than fifty thousand.
(iii) Six Seven hundred eighty thousand dollars in a county
having a population of more than fifty thousand but not more
than one hundred thousand.
(iv) Eight hundred One million forty thousand dollars in a
county having a population of more than one hundred thousand
but not more than two hundred thousand.
(v) One million three hundred thousand dollars in a county
having a population of more than two hundred thousand.
(b) However, if the principal amount of a lease or
lease-purchase contract pursuant to this subparagraph (1) is
less than twenty-five thirty-two thousand five hundred dollars,
the board may authorize the lease or lease-purchase contract
without following the authorization procedures of section
331.443.
Sec. 139. Section 331.402, subsection 3, paragraph d,
subparagraph (1), subparagraph divisions (a), (b), (c), (d),
and (e), Code 2023, are amended to read as follows:
(a) Four Five hundred twenty thousand dollars in a county
having a population of twenty-five thousand or less.
(b) Five Six hundred fifty thousand dollars in a county
having a population of more than twenty-five thousand but not
more than fifty thousand.
-66- (c) Six Seven hundred eighty thousand dollars in a county
having a population of more than fifty thousand but not more
than one hundred thousand.
(d) Eight hundred One million forty thousand dollars in a
county having a population of more than one hundred thousand
but not more than two hundred thousand.
(e) One million three hundred thousand dollars in a county
having a population of more than two hundred thousand.
Sec. 140. Section 331.403, subsection 1, Code 2023, is
amended to read as follows:
1. Not later than December 1 of each year on forms and
pursuant to instructions prescribed by the department of
management, a county shall prepare an annual financial report
showing for each county fund the financial condition as of
June 30 and the results of operations for the year then ended.
Copies of the report shall be maintained as a public record at
the auditor’s office and shall be filed with the director of
the department of management and with the auditor of state by
December 1. A summary of the report, in a form prescribed by
the director, shall be published by each county not later than
December 1 of each year in one or more newspapers which meet
the requirements of section 618.14. Beginning with the annual
financial report filed by December 1, 2025, each report shall
include a list of bonds, notes, or other obligations issued
by the county during the most recently completed fiscal year,
and the applicable lists for other fiscal years beginning on
or after July 1, 2024, for which obligations remain unpaid,
payable from any source, including the amount of the issuance,
the project or purpose of the issuance, whether the issuance
was approved at election, eligible to be subject to a petition
for an election, or was exempt from approval at election as
the result of statutory exclusions based on population of
the county or amount of the issuance, and identification of
issuances from the fiscal year or prior fiscal years related
to the same project or purpose.
-67- Sec. 141. Section 331.441, subsection 2, paragraph b,
subparagraph (5), subparagraph divisions (a), (b), (c), (d),
and (e), Code 2023, are amended to read as follows:
(a) Six Seven hundred eighty thousand dollars in a county
having a population of twenty-five thousand or less.
(b) Seven Nine hundred fifty seventy-five thousand dollars
in a county having a population of more than twenty-five
thousand but not more than fifty thousand.
(c) Nine One million one hundred seventy thousand dollars in
a county having a population of more than fifty thousand but
not more than one hundred thousand.
(d) One million two five hundred sixty thousand dollars in
a county having a population of more than one hundred thousand
but not more than two hundred thousand.
(e) One million five nine hundred fifty thousand dollars in
a county having a population of more than two hundred thousand.
Sec. 142. Section 331.442, subsection 2, paragraph a, Code
2023, is amended to read as follows:
a. The board shall publish notice of the proposal to issue
the bonds, including a statement of the amount and purpose
of the bonds, and a statement of the estimated cost of the
project for which the bonds are to be issued, and an estimate
of the annual increase in property taxes as the result of
the bond issuance on a residential property with an actual
value of one hundred thousand dollars. The notice shall be
published as provided in section 331.305 with the minutes of
the meeting at which the board adopts a resolution to call a
county special election to vote upon the question of issuing
the bonds. The cost of the project, as published in the notice
pursuant to this paragraph, is an estimate and is not intended
to be binding on the board in later proceedings related to the
project.
Sec. 143. Section 331.442, subsection 5, paragraph a,
unnumbered paragraph 1, Code 2023, is amended to read as
follows:
-68- Notwithstanding subsection 2, a board, in lieu of calling
an election, may institute proceedings for the issuance of
bonds for a general county purpose by causing a notice of the
proposal to issue the bonds, including a statement of the
amount and purpose of the bonds, and the right to petition for
an election, to be published as provided in section 331.305 at
least ten days prior to the meeting at which it is proposed
to take action for the issuance of the bonds subject to the
following population-based limitations, adjusted and published
annually in January by the department of management by applying
the percentage change in the consumer price index for all
urban consumers for the most recent available twelve-month
period published in the federal register by the United States
department of labor, bureau of labor statistics:
Sec. 144. Section 331.442, subsection 5, paragraph a,
subparagraphs (1), (2), and (3), Code 2023, are amended to read
as follows:
(1) In counties having a population of twenty thousand or
less, in an amount of not more than one hundred thirty thousand
dollars.
(2) In counties having a population of over twenty thousand
and not over fifty thousand, in an amount of not more than two
hundred sixty thousand dollars.
(3) In counties having a population of over fifty thousand,
in an amount of not more than three hundred ninety thousand
dollars.
Sec. 145. Section 331.442, subsection 5, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. 0b. Each county’s population used to
determine the limitations of paragraph “a” shall be determined
by the greater of the county’s population during the most
recent federal decennial census or the most recent population
estimate produced by the United States census bureau.
Sec. 146. Section 331.443, subsection 2, Code 2023, is
amended to read as follows:
-69- 2. Before the board may institute proceedings for the
issuance of bonds for an essential county purpose, a notice
of the proposed action, including a statement of the amount
and purposes of the bonds, an estimate of the annual increase
in property taxes as the result of the bond issuance on a
residential property with an actual value of one hundred
thousand dollars, and the time and place of the meeting at
which the board proposes to take action for the issuance of the
bonds, shall be published as provided in section 331.305. At
the meeting, the board shall receive oral or written objections
from any resident or property owner of the county. After
all objections have been received and considered, the board,
at that meeting or a date to which it is adjourned, may take
additional action for the issuance of the bonds or abandon the
proposal to issue the bonds. Any resident or property owner
of the county may appeal the decision of the board to take
additional action to the district court of the county, within
fifteen days after the additional action is taken, but the
additional action of the board is final and conclusive unless
the court finds that the board exceeded its authority. The
provisions of this subsection with respect to notice, hearing,
and appeal, are in lieu of any other law.
Sec. 147. Section 384.22, subsection 1, Code 2023, is
amended to read as follows:
1. Not later than December 1 of each year, a city shall
publish an annual financial report as provided in section
362.3 containing a summary for the preceding fiscal year of
all collections and receipts, all accounts due the city,
and all expenditures, the current public debt of the city,
and the legal debt limit of the city for the current fiscal
year. The annual financial report shall be prepared on forms
and pursuant to instructions prescribed by the auditor of
state. Beginning with the annual financial report published by
December 1, 2025, each report shall include a list of bonds,
notes, or other obligations issued by the city during the most
-70-recently completed fiscal year, and the applicable lists for
other fiscal years beginning on or after July 1, 2024, for
which obligations remain unpaid, payable from any source,
including the amount of the issuance, the project or purpose of
the issuance, whether the issuance was approved at election,
eligible to be subject to a petition for an election, or was
exempt from approval at election as the result of statutory
exclusions based on population of the city or amount of the
issuance, and identification of issuances from the fiscal year
or prior fiscal years related to the same project or purpose.
Sec. 148. Section 384.24A, subsection 4, paragraph a,
subparagraphs (1), (2), and (3), Code 2023, are amended to read
as follows:
(1) Four Five hundred twenty thousand dollars in a city
having a population of five thousand or less.
(2) Seven Nine hundred ten thousand dollars in a city having
a population of more than five thousand but not more than
seventy-five thousand.
(3) One million three hundred thousand dollars in a city
having a population of more than seventy-five thousand.
Sec. 149. Section 384.25, subsection 2, Code 2023, is
amended to read as follows:
2. Before the council may institute proceedings for the
issuance of bonds for an essential corporate purpose, a notice
of the proposed action, including a statement of the amount
and purposes of the bonds, and an estimate of the annual
increase in property taxes as the result of the bond issuance
on a residential property with an actual value of one hundred
thousand dollars, and the time and place of the meeting at
which the council proposes to take action for the issuance of
the bonds, must be published as provided in section 362.3.
At the meeting, the council shall receive oral or written
objections from any resident or property owner of the city.
After all objections have been received and considered, the
council may, at that meeting or any adjournment thereof, take
-71-additional action for the issuance of the bonds or abandon the
proposal to issue the bonds. Any resident or property owner
of the city may appeal the decision of the council to take
additional action to the district court of the county in which
any part of the city is located, within fifteen days after the
additional action is taken, but the additional action of the
council is final and conclusive unless the court finds that
the council exceeded its authority. The provisions of this
subsection with respect to notice, hearing, and appeal, are in
lieu of the provisions contained in chapter 73A, or any other
law.
Sec. 150. Section 384.26, subsection 2, Code 2023, is
amended to read as follows:
2. a. The board shall publish notice of the proposal
to issue the bonds, including a statement of the amount and
purpose of the bonds, a statement of the estimated cost of the
project for which the bonds are to be issued, and an estimate
of the annual increase in property taxes as the result of
the bond issuance on a residential property with an actual
value of one hundred thousand dollars. The notice shall be
published as provided in section 362.3 with the minutes of
the meeting at which the council adopts a resolution to call
a special election to vote upon the question of issuing the
bonds. The cost of the project, as published in the notice
pursuant to this paragraph, is an estimate and is not intended
to be binding on the board in later proceedings related to the
project.
b. Before the council may institute proceedings for the
issuance of bonds for a general corporate purpose, it shall
call a special city election to vote upon the question of
issuing the bonds. At the election the proposition must be
submitted in the following form:
Shall the ............ (insert the name of the city) issue
its bonds in an amount not exceeding the amount of $.... for
the purpose of ..........?
-72- Sec. 151. Section 384.26, subsection 5, paragraph a,
unnumbered paragraph 1, Code 2023, is amended to read as
follows:
Notwithstanding the provisions of subsection 2, a council
may, in lieu of calling an election, institute proceedings
for the issuance of bonds for a general corporate purpose by
causing a notice of the proposal to issue the bonds, including
a statement of the amount and purpose of the bonds, together
with the maximum rate of interest which the bonds are to bear,
and the right to petition for an election, to be published at
least once in a newspaper of general circulation within the
city at least ten days prior to the meeting at which it is
proposed to take action for the issuance of the bonds subject
to the following population-based limitations, adjusted and
published annually in January by the department of management
by applying the percentage change in the consumer price
index for all urban consumers for the most recent available
twelve-month period published in the federal register by the
United States department of labor, bureau of labor statistics:
Sec. 152. Section 384.26, subsection 5, paragraph a,
subparagraphs (1), (2), and (3), Code 2023, are amended to read
as follows:
(1) In cities having a population of five thousand or less,
in an amount of not more than four five hundred twenty thousand
dollars.
(2) In cities having a population of more than five thousand
and not more than seventy-five thousand, in an amount of not
more than seven nine hundred ten thousand dollars.
(3) In cities having a population in excess of seventy-five
thousand, in an amount of not more than one million three
hundred thousand dollars.
Sec. 153. Section 384.26, subsection 5, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. 0b. Each city’s population used to determine
the limitations of paragraph “a” shall be determined by the
-73-greater of the city’s population during the most recent
federal decennial census or the most recent population estimate
produced by the United States census bureau.
Sec. 154. EFFECTIVE DATE. This division of this Act takes
effect July 1, 2024.
-74-______________________________
PAT GRASSLEYSpeaker of the House______________________________
AMY SINCLAIRPresident of the Senate I hereby certify that this bill originated in the House and is known as House File 718, Ninetieth General Assembly.______________________________
MEGHAN NELSONChief Clerk of the HouseApproved _______________, 2023______________________________
KIM REYNOLDSGovernormd/jh/md
authority, operations, and budgets, modifying certain
transit funding, property tax credits and exemptions, and
appropriations, requiring certain information related
to property taxation to be provided to property owners
and taxpayers, modifying provisions relating to fees for
driver’s licenses and nonoperator’s identification cards,
modifying provisions relating to certain writing fees,
modifying certain bonding procedures, making penalties
applicable, and including effective date, applicability, and
retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
COUNTY PROPERTY TAXES AND BUDGETS
Section 1. Section 331.422, unnumbered paragraph 1, Code
2023, is amended to read as follows:
Subject to this section and sections 331.423 through 331.426
331.425 or as otherwise provided by state law, the board of
each county shall certify property taxes annually at its March
session to be levied for county purposes as follows:
Sec. 2. Section 331.423, Code 2023, is amended to read as
follows:
331.423 Basic levies — maximums — adjustments.
Annually, the board may certify basic levies, subject to the
following limits:
1. For general county services, on all taxable property in
the county:
a. For fiscal years beginning before July 1, 2024,three
dollars and fifty cents per thousand dollars of the assessed
value of all taxable property in the county.
b. (1) For each fiscal year beginning on or after July 1,
2024, but before July 1, 2028, subject to subparagraph (3),
the greater of three dollars and fifty cents per thousand
dollars of assessed value used to calculate taxes for general
county services for the budget year and the adjusted general
county basic levy rate, as adjusted under subparagraph (2), if
applicable.
(2) (a) If the total assessed value used to calculate
taxes for general county services under this paragraph for the
budget year exceeds one hundred three percent, but is less
than one hundred six percent, of the total assessed value
used to calculate taxes for general county services for the
current fiscal year, the adjusted general county basic levy
rate, as previously adjusted under this subparagraph, if
applicable, shall be reduced to a rate per thousand dollars
of assessed value that is equal to one thousand multiplied
by the quotient of the current fiscal year’s actual property
-1-tax dollars certified for levy under this subsection 1 divided
by one hundred two percent of the total assessed value used
to calculate such taxes for the current fiscal year. For
the budget year beginning July 1, 2024, only, the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 1 shall also include property tax dollar
amounts levied for general county services by the county under
section 331.426, Code 2023, for the fiscal year beginning July
1, 2023.
(b) If the total assessed value used to calculate taxes
for general county services under this paragraph for the
budget year is equal to or exceeds one hundred six percent of
the total assessed value used to calculate taxes for general
county services for the current fiscal year, the adjusted
general county basic levy rate, as previously adjusted under
this subparagraph, if applicable, shall be reduced to a rate
per thousand dollars of assessed value that is equal to one
thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 divided by one hundred three percent of
the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection 1 shall also
include property tax dollar amounts levied for general county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023.
(3) (a) (i) In addition to the limitation under
subparagraph (2), if the county’s actual levy rate imposed
under this subsection 1 for the current fiscal year is three
dollars and fifty cents or less per thousand dollars of
assessed value and the total assessed value used to calculate
taxes for general county services under this paragraph for the
budget year exceeds one hundred three percent, but is less than
one hundred six percent, of the total assessed value used to
-2-calculate taxes for general county services for the current
fiscal year, the levy rate imposed under this subsection 1 for
the budget year shall not exceed a rate per thousand dollars
of assessed value that is equal to one thousand multiplied by
the quotient of the current fiscal year’s actual property tax
dollars certified for levy under this subsection 1 divided by
one hundred two percent of the total assessed value used to
calculate taxes for general county services for the current
fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection 1
for the current fiscal year shall also include the amount per
thousand dollars of assessed value levied for general county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 shall also include amounts levied for general
county services by the county under section 331.426, Code 2023,
for the fiscal year beginning July 1, 2023.
(b) (i) In addition to the limitation under subparagraph
(2), if the county’s actual levy rate imposed under this
subsection 1 for the current fiscal year is three dollars and
fifty cents or less per thousand dollars of assessed value and
the total assessed value used to calculate taxes for general
county services under this paragraph for the budget year is
equal to or exceeds one hundred six percent of the total
assessed value used to calculate taxes for general county
services for the current fiscal year, the levy rate imposed
under this subsection 1 for the budget year shall not exceed a
rate per thousand dollars of assessed value that is equal to
one thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 divided by one hundred three percent of the
total assessed value used to calculate taxes for general county
services for the current fiscal year.
-3- (ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection 1
for the current fiscal year shall also include the amount per
thousand dollars of assessed value levied for general county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 1 shall also include amounts levied for general
county services by the county under section 331.426, Code 2023,
for the fiscal year beginning July 1, 2023.
(4) Subject to adjustment under subparagraph (2), for
purposes of this paragraph, “adjusted general county basic
levy rate” means a levy rate per thousand dollars of assessed
value equal to the sum of three dollars and fifty cents plus
the amount per thousand dollars of assessed value levied for
general county services by the county under section 331.426,
Code 2023, for the fiscal year beginning July 1, 2023.
c. For each fiscal year beginning on or after July 1, 2028,
three dollars and fifty cents per thousand dollars of assessed
value.
2. For rural county services, on all taxable property in the
county outside of incorporated city areas:
a. For fiscal years beginning before July 1, 2024,three
dollars and ninety-five cents per thousand dollars of the
assessed value of taxable property in the county outside of
incorporated city areas.
b. (1) For each fiscal year beginning on or after July 1,
2024, but before July 1, 2028, subject to subparagraph (3), the
greater of three dollars and ninety-five cents per thousand
dollars of assessed value used to calculate taxes for rural
county services for the budget year and the adjusted rural
county basic levy rate, as adjusted under subparagraph (2), if
applicable.
(2) (a) If the total assessed value used to calculate
taxes for rural county services under this paragraph for the
-4-budget year exceeds one hundred three percent, but is less
than one hundred six percent, of the total assessed value
used to calculate taxes for rural county services for the
current fiscal year, the adjusted rural county basic levy
rate, as previously adjusted under this subparagraph, if
applicable, shall be reduced to a rate per thousand dollars
of assessed value that is equal to one thousand multiplied
by the quotient of the current fiscal year’s actual property
tax dollars certified for levy under this subsection 2 divided
by one hundred two percent of the total assessed value used
to calculate such taxes for the current fiscal year. For
the budget year beginning July 1, 2024, only, the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 2 shall also include property tax dollar
amounts levied for rural county services by the county under
section 331.426, Code 2023, for the fiscal year beginning July
1, 2023.
(b) If the total assessed value used to calculate taxes
for rural county services under this paragraph for the budget
year is equal to or exceeds one hundred six percent of the
total assessed value used to calculate taxes for rural county
services for the current fiscal year, the adjusted rural
county basic levy rate, as previously adjusted under this
subparagraph, if applicable, shall be reduced to a rate
per thousand dollars of assessed value that is equal to one
thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 divided by one hundred three percent of
the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection 2 shall also
include property tax dollar amounts levied for rural county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023.
-5- (3) (a) (i) In addition to the limitation under
subparagraph (2), if the county’s actual levy rate imposed
under this paragraph for the current fiscal year is three
dollars and ninety-five cents or less per thousand dollars of
assessed value and the total assessed value used to calculate
taxes for rural county services under this paragraph for the
budget year exceeds one hundred three percent, but is less
than one hundred six percent, of the total assessed value used
to calculate taxes for rural county services for the current
fiscal year, the levy rate imposed under this subsection 2 for
the budget year shall not exceed a rate per thousand dollars
of assessed value that is equal to one thousand multiplied by
the quotient of the current fiscal year’s actual property tax
dollars certified for levy under this subsection 2 divided by
one hundred two of the total assessed value used to calculate
taxes for rural county services for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection
2 for the current fiscal year shall also include the amount
per thousand dollars of assessed value levied for rural county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 shall also include amounts levied for rural
county services by the county under section 331.426, Code 2023,
for the fiscal year beginning July 1, 2023.
(b) (i) In addition to the limitation under subparagraph
(2), if the county’s actual levy rate imposed under this
subsection 2 for the current fiscal year is three dollars and
ninety-five cents or less per thousand dollars of assessed
value and the total assessed value used to calculate taxes
for rural county services under this paragraph for the budget
year is equal to or exceeds one hundred six percent of the
total assessed value used to calculate taxes for rural county
services for the current fiscal year, the levy rate imposed
-6-under this subsection 2 for the budget year shall not exceed
a rate per thousand dollars of assessed value that is equal
to one thousand multiplied by the quotient of the current
fiscal year’s actual property tax dollars certified for levy
under this subsection 2 divided by one hundred three of the
total assessed value used to calculate taxes for rural county
services for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only,
the county’s actual levy rate imposed under this subsection
2 for the current fiscal year shall also include the amount
per thousand dollars of assessed value levied for rural county
services by the county under section 331.426, Code 2023, for
the fiscal year beginning July 1, 2023, and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection 2 shall also include amounts levied for rural
county services by the county under section 331.426, Code 2023,
for the fiscal year beginning July 1, 2023.
(4) Subject to adjustment under subparagraph (2), for
purposes of this paragraph, “adjusted rural county basic levy
rate” means a levy rate per thousand dollars of assessed value
equal to the sum of three dollars and ninety-five cents plus
the amount per thousand dollars of assessed value levied for
rural county services by the county under section 331.426, Code
2023, for the fiscal year beginning July 1, 2023.
c. For each fiscal year beginning on or after July 1, 2028,
three dollars and ninety-five cents per thousand dollars of
assessed value.
3. For purposes of this section:
a. “Budget year” is the fiscal year beginning during the
calendar year in which a budget is certified.
b. “Current fiscal year” is the fiscal year ending during
the calendar year in which a budget for the budget year is
certified.
Sec. 3. Section 331.424, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
-7- To the extent that the basic levies under section 331.423
are insufficient to meet the county’s needs for the following
services, the board may certify supplemental levies as follows:
Sec. 4. Section 331.425, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
The board may certify an addition to a levy in excess
of the amounts otherwise permitted under sections 331.423,
and 331.424, and 331.426 if the proposition to certify an
addition to a levy has been submitted at a special levy
election and received a favorable majority of the votes cast
on the proposition. A special levy election is subject to the
following:
Sec. 5. Section 331.425, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION. 6. a. If the addition to a levy approved
under this section is due to unusual circumstances resulting
from the following, the duration of such approval at election
shall not exceed the following period of years:
(1) Unusual problems relating to major new functions
required by state law, three years.
(2) Unusual need for a new program which will provide
substantial benefit to county residents, if the county
establishes the need and the amount of necessary increased
cost, one year.
b. For an election to approve an addition to a levy for a
reason specified in paragraph “a” or as the result of a natural
disaster, the ballot shall include a statement of the major
reasons for the difference between the proposed basic tax rate
and the maximum basic tax rate, including a description of the
major new functions required by state law and the specific
new costs to the county to implement the new functions, a
description of the new program that will provide substantial
benefits to county residents and specific new costs to the
county for the program, or the conditions and damage resulting
from the natural disaster that the county must remedy.
-8- Sec. 6. Section 331.434, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
Annually, the board of each county, subject to section
331.403, subsection 4, sections 331.423 through 331.426
331.425, section 331.433A, and other applicable state law,
shall prepare and adopt a budget, certify taxes, and provide
appropriations as follows:
Sec. 7. Section 331.435, subsection 1, Code 2023, is amended
to read as follows:
1. The board may amend the adopted county budget, subject to
sections 331.423 through 331.426 331.425 and other applicable
state law, to permit increases in any class of proposed
expenditures contained in the budget summary published under
section 331.434, subsection 3.
Sec. 8. Section 331.441, subsection 2, paragraph c,
subparagraph (11), Code 2023, is amended by striking the
subparagraph.
Sec. 9. REPEAL. Section 331.426, Code 2023, is repealed.
Sec. 10. APPLICABILITY. This division of this Act applies
to taxes and budgets for fiscal years beginning on or after
July 1, 2024.
DIVISION II
CITY PROPERTY TAXES AND BUDGETS
Sec. 11. Section 24.48, subsection 5, Code 2023, is amended
by adding the following new paragraph:
NEW PARAGRAPH. c. For budgets for fiscal years beginning on
or after July 1, 2024, if the political subdivision is a city,
a suspension of the statutory property tax levy limitations
under this section shall only be approved by the state appeal
board in the event of a natural disaster or under the reasons
specified in subsection 1, paragraph “c” or “f”.
Sec. 12. Section 28M.5, subsection 1, Code 2023, is amended
to read as follows:
1. The commission, with the approval of the board of
supervisors of participating counties and the city council
-9-of participating cities in the chapter 28E agreement, may
levy annually a tax not to exceed ninety-five cents per
thousand dollars of the assessed value of all taxable property
in a regional transit district to the extent provided in
this section. The chapter 28E agreement may authorize the
commission to levy the tax at different rates within the
participating cities and counties in amounts sufficient to meet
the revenue responsibilities of such cities and counties as
allocated in the budget adopted by the commission. However,
for a city participating in a regional transit district, the
total of all the tax levies imposed in the city pursuant
to section 384.12, subsection 10 1, and this section shall
not exceed the aggregate of ninety-five cents per thousand
dollars of the assessed value of all taxable property in the
participating city.
Sec. 13. Section 37.8, Code 2023, is amended to read as
follows:
37.8 Levy for Cost of development, operation, and
maintenance.
For the development, operation, and maintenance of a
building or monument constructed, purchased, or donated under
this chapter, a city may levy a tax not to exceed eighty-one
cents per thousand dollars of assessed value on all the taxable
property within the city, as provided in section 384.12,
subsection 2 utilize taxes levied under section 384.1.
Sec. 14. Section 384.1, Code 2023, is amended to read as
follows:
384.1 Taxes certified.
1. A city may certify taxes to be levied by the county
on all taxable property within the city limits, for all city
government purposes. However, the
2. Notwithstanding subsection 3, thetax levied by a
city on tracts of land and improvements thereon used and
assessed for agricultural or horticultural purposes, shall
not exceed three dollars and three-eighths cents per thousand
-10-dollars of assessed value in any fiscal year. Improvements
located on such tracts of land and not used for agricultural
or horticultural purposes and all residential dwellings are
subject to the same rate of tax levied by the city on all other
taxable property within the city. A
3. a. For fiscal years beginning before July 1, 2024, a
city’s tax levy for the general fund shall not exceed eight
dollars and ten cents per thousand dollars of taxable assessed
value used to calculate taxes in any tax fiscal year, except
for the levies authorized in section 384.12.
b. Subject to adjustment under paragraph “c”, subparagraph
(2), for purposes of this subsection, “adjusted city general
fund levy rate” means a levy rate per thousand dollars of
assessed value equal to the sum of eight dollars and ten cents
per thousand dollars of assessed value plus the sum of the
following for the city, as applicable:
(1) The amount per thousand dollars of assessed value levied
by or on behalf of the city under section 384.8, Code 2023, for
the fiscal year beginning July 1, 2023.
(2) The total amount per thousand dollars of assessed
value levied by or on behalf of the city under section 384.12,
subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, and
20, Code 2023, for the fiscal year beginning July 1, 2023.
(3) The amount per thousand dollars of assessed value levied
by the city under section 24.48, Code 2023, for the fiscal year
beginning July 1, 2023.
c. (1) For each fiscal year beginning on or after July 1,
2024, but before July 1, 2028, subject to subparagraph (3),
a city’s tax levy for the general fund, except for levies
authorized in section 384.12, shall not exceed in any tax year
the greater of eight dollars and ten cents per thousand dollars
of assessed value used to calculate taxes for the budget year
and the adjusted city general fund levy rate, as adjusted under
subparagraph (2), if applicable.
(2) (a) If the total assessed value used to calculate taxes
-11-under this paragraph for the budget year exceeds one hundred
three percent, but is less than one hundred six percent,
of the total assessed value used to calculate taxes under
this subsection for the current fiscal year, the adjusted
city general fund levy rate, as previously adjusted under
this subparagraph, if applicable, shall be reduced to a rate
per thousand dollars of assessed value that is equal to one
thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection divided by one hundred two percent of the total
assessed value used to calculate such taxes for the current
fiscal year. For the budget year beginning July 1, 2024, only,
the current fiscal year’s actual property tax dollars certified
for levy under this subsection shall also include property
tax dollar amounts levied under the provisions specified in
paragraph “b”, subparagraphs (1), (2), and (3).
(b) If the total assessed value used to calculate taxes
under this paragraph for the budget year is equal to or exceeds
one hundred six percent of the total assessed value used to
calculate taxes under this subsection for the current fiscal
year, the adjusted city general fund levy rate, as previously
adjusted under this subparagraph, if applicable, shall be
reduced to a rate per thousand dollars of assessed value that
is equal to one thousand multiplied by the quotient of the
current fiscal year’s actual property tax dollars certified for
levy under this subsection divided by one hundred three percent
of the total assessed value used to calculate such taxes for
the current fiscal year. For the budget year beginning July
1, 2024, only, the current fiscal year’s actual property tax
dollars certified for levy under this subsection shall also
include property tax dollar amounts levied under the provisions
specified in paragraph “b”, subparagraphs (1), (2), and (3).
(3) (a) (i) In addition to the limitation under
subparagraph (2), if the city’s actual levy rate imposed
under this subsection for the current fiscal year is eight
-12-dollars and ten cents or less per thousand dollars of assessed
value and the total assessed value used to calculate taxes
under this paragraph for the budget year exceeds one hundred
three percent, but is less than one hundred six percent, of
the total assessed value used to calculate taxes under this
subsection for the current fiscal year, the levy rate imposed
under this paragraph for the budget year shall not exceed a
rate per thousand dollars of assessed value that is equal to
one thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy under
this subsection divided by one hundred two percent of the total
assessed value used to calculate taxes under this subsection
for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only, the
city’s actual levy rate imposed under this subsection for the
current fiscal year shall also include the sum of the amounts
per thousand dollars of assessed value specified in paragraph
“b”, subparagraphs (1), (2), and (3), and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection shall also include property tax dollar amounts
levied by the city under the provisions specified in paragraph
“b”, subparagraphs (1), (2), and (3).
(b) (i) In addition to the limitation under subparagraph
(2), if the city’s actual levy rate imposed under this
subsection for the current fiscal year is eight dollars and
ten cents or less per thousand dollars of assessed value
and the total assessed value used to calculate taxes under
this paragraph for the budget year is equal to or exceeds
one hundred six percent of the total assessed value used to
calculate taxes under this subsection for the current fiscal
year, the levy rate imposed under this paragraph for the budget
year shall not exceed a rate per thousand dollars of assessed
value that is equal to one thousand multiplied by the quotient
of the current fiscal year’s actual property tax dollars
certified for levy under this subsection divided by one hundred
-13-three percent of the total assessed value used to calculate
taxes under this subsection for the current fiscal year.
(ii) For the budget year beginning July 1, 2024, only, the
city’s actual levy rate imposed under this subsection for the
current fiscal year shall also include the sum of the amounts
per thousand dollars of assessed value specified in paragraph
“b”, subparagraphs (1), (2), and (3), and the current fiscal
year’s actual property tax dollars certified for levy under
this subsection shall also include property tax dollar amounts
levied by the city under the provisions specified in paragraph
“b”, subparagraphs (1), (2), and (3).
d. For each fiscal year beginning on or after July 1, 2028,
a city’s tax levy rate for the general fund, except for levies
authorized in section 384.12, shall not exceed eight dollars
and ten cents per thousand dollars of assessed value used to
calculate taxes in any fiscal year.
4. For purposes of this section:
a. “Budget year” is the fiscal year beginning during the
calendar year in which a budget is certified.
b. “Current fiscal year” is the fiscal year ending during
the calendar year in which a budget for the budget year is
certified.
Sec. 15. Section 384.12, Code 2023, is amended to read as
follows:
384.12 Additional taxes.
A city may certify, for the general fund levy, taxes which
are not subject to the limit provided in section 384.1, and
which are in addition to any other moneys the city may wish to
spend for such purposes, as follows:
1. A tax not to exceed thirteen and one-half cents
per thousand dollars of assessed value for the support of
instrumental or vocal musical groups, one or more organizations
which have tax-exempt status under section 501(c)(3) of
the Internal Revenue Code and are organized and operated
exclusively for artistic and cultural purposes, or any of these
-14-purposes, subject to the following:
a. Upon receipt of a petition valid under the provisions of
section 362.4, the council shall submit to the voters at the
next regular city election the question of whether a tax shall
be levied.
b. If a majority approves the levy, it may be imposed.
c. The levy can be eliminated by the same procedure of
petition and election.
d. A tax authorized by an election held prior to the
effective date of the city code may be continued until
eliminated by the council, or by petition and election.
2. A tax not to exceed eighty-one cents per thousand dollars
of assessed value for development, operation, and maintenance
of a memorial building or monument, subject to the provisions
of subsection 1.
3. A tax not to exceed thirteen and one-half cents per
thousand dollars of assessed value for support of a symphony
orchestra, subject to the provisions of subsection 1.
4. A tax not to exceed twenty-seven cents per thousand
dollars of assessed value for the operation of cultural and
scientific facilities, subject to the provisions of subsection
1, except that the question may be submitted on the council’s
own motion.
5. A tax to aid in the construction of a county bridge,
subject to the provisions of subsection 1, except that the
question must be submitted at a special election. The expense
of a special election under this subsection must be paid by the
county. The notice of the special election must include full
details of the proposal, including the location of the proposed
bridge, the rate of tax to be levied, and all other conditions.
6. A tax to aid a company incorporated under the laws of
this state in the construction of a highway or combination
bridge across any navigable boundary river of this state,
commencing or terminating in the city and suitable for use
as highway, or for both highway and railway purposes. This
-15-tax levy is subject to the provisions of subsections 1 and 5.
The levy is limited to one dollar and thirty-five cents per
thousand dollars of the assessed value of taxable property in
the city. The estimated cost of the bridge must be at least
ten thousand dollars, and the city aid may not exceed one-half
of the estimated cost. The notice of the special election
must include the name of the corporation to be aided, and all
conditions required of the corporation. Tax moneys received
for this purpose may not be paid over by the county treasurer
until the city has filed a statement that the corporation has
complied with all conditions.
7. If a tax has been voted for aid of a bridge under
subsection 6, a further tax may be voted for the purpose of
purchasing the bridge, subject to the provisions of subsection
1. The levy under this subsection is limited to three dollars
and thirty-seven and one-half cents per thousand dollars of the
assessed value of the taxable property in the city, payable in
not less than ten annual installments.
8. A tax for the purpose of carrying out the terms of a
contract for the use of a bridge by a city situated on a river
over which a bridge has been built. The tax may not exceed
sixty-seven and one-half cents per thousand dollars of assessed
value each year.
9. A tax for aid to a public transportation company,
subject to the procedure provided in subsection 1, except the
question must be submitted at a special election. The levy is
limited to three and three-eighths cents per thousand dollars
of assessed value. In addition to any other conditions the
following requirements must be met before moneys received for
this purpose may be paid over by the county treasurer:
a. The public transportation company shall provide the city
with copies of state and federal income tax returns for the
five years preceding the year for which payment is contemplated
or for such lesser period of time as the company has been in
operation.
-16- b. The city shall, in any given year, be authorized to pay
over only such sums as will yield not to exceed two percent
of the public transportation company’s investment as the same
is valued in its tax depreciation schedule, provided that
corporate profits and losses for the five preceding years or
for such lesser period of time as the company has been in
operation shall not average in excess of a two percent net
return. Taxes levied under this subsection may not be used to
subsidize losses incurred prior to the election required by
this subsection.
10. 1. A tax for the operation and maintenance of a
municipal transit system or for operation and maintenance of a
regional transit district, and for the creation of a reserve
fund for the system or district, in an amount not to exceed
ninety-five cents per thousand dollars of assessed value each
year, when the revenues from the transit system or district are
insufficient for such purposes.
11. If a city has entered into a lease of a building or
complex of buildings to be operated as a civic center, a tax
sufficient to pay the installments of rent and for maintenance,
insurance and taxes not included in the lease rental payments.
12. A tax not to exceed thirteen and one-half cents per
thousand dollars of assessed value each year for operating and
maintaining a civic center owned by a city.
13. A tax not to exceed six and three-fourths cents per
thousand dollars of assessed value for planning a sanitary
disposal project.
14. 2. A tax not to exceed twenty-seven cents per thousand
dollars of assessed value each year for an aviation authority
as provided in section 330A.15.
15. A tax not to exceed six and three-fourths cents per
thousand dollars of assessed value each year for a levee
improvement fund in special charter cities as provided in
section 420.155.
16. A tax not to exceed twenty and one-half cents per
-17-thousand dollars of assessed value each year to maintain an
institution received by gift or devise, subject to an election
as required under subsection 1.
17. 3. A tax to pay the premium costs on tort liability
insurance, property insurance, and any other insurance that
may be necessary in the operation of the city, the costs of a
self-insurance program, the costs of a local government risk
pool and amounts payable under any insurance agreements to
provide or procure such insurance, self-insurance program, or
local government risk pool.
18. A tax to fund an emergency medical services district
under chapter 357G.
19. 4. A tax that exceeds any tax levy limit within this
chapter, provided the question has been submitted at a special
levy election and received a simple majority of the votes cast
on the proposition to authorize the enumerated levy limit to be
exceeded for the proposed budget year.
a. The election may be held as specified in this subsection
if notice is given by the city council, not later than
forty-six days before the first Tuesday in March, to the county
commissioner of elections that the election is to be held.
b. An election under this subsection shall be held on
the first Tuesday in March and be conducted by the county
commissioner of elections in accordance with the law.
c. The ballot question shall be in substantially the
following form:
WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........?
(Vote for only one of the following choices.)
CHANGE LEVY AMOUNT ...
Add to the existing levy amount a tax for the purpose of
.......... (state purpose of proposed levy) at a rate of ...
(rate) which will provide an additional $.... (amount).
KEEP CURRENT LEVY ...
Continue under the current maximum rate of ..., providing
$.... (amount).
-18- d. The commissioner of elections conducting the election
shall notify the city officials and other county auditors where
applicable, of the results within two days of the canvass which
shall be held on the second day that is not a holiday following
the special levy election, and beginning no earlier than 1:00
p.m.on that day.
e. Notice of the election shall be published twice in
accordance with the provisions of section 362.3, except that
the first such notice shall be given at least two weeks before
the election.
f. The cost of the election shall be borne by the city.
g. The election provisions of this subsection shall
supersede other provisions for elections only to the extent
necessary to comply with the provisions of this subsection.
h. The provisions of this subsection apply to all cities,
however organized, including special charter cities which may
adopt ordinances where necessary to carry out these provisions.
i. The council shall certify the city’s budget with the tax
askings not exceeding the amount approved by the special levy
election.
20. A tax not to exceed twenty-seven cents per thousand
dollars of assessed value for support of a public library,
subject to petition and referendum requirements of subsection
1, except that if a majority approves the levy, it shall be
imposed.
21. 5. A tax for the support of a local emergency
management commission established pursuant to chapter 29C.
Sec. 16. Section 384.24, subsection 4, paragraph i, Code
2023, is amended by striking the paragraph.
Sec. 17. Section 384.110, Code 2023, is amended to read as
follows:
384.110 Insurance, self-insurance, and risk pooling funds.
A city may credit funds to a fund or funds for the purposes
authorized by section 364.4, subsection 5; section 384.12,
subsection 17 3; or section 384.24, subsection 3, paragraph “s”.
-19-Moneys credited to the fund or funds, and interest earned on
such moneys, shall remain in the fund or funds until expended
for purposes authorized by section 364.4, subsection 5; section
384.12, subsection 17 3; or section 384.24, subsection 3,
paragraph “s”.
Sec. 18. REPEAL. Section 384.8, Code 2023, is repealed.
Sec. 19. APPLICABILITY. This division of this Act applies
to taxes and budgets for fiscal years beginning on or after
July 1, 2024.
DIVISION III
public education and recreation tax levy
Sec. 20. Section 300.2, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION. 4. A levy under this chapter shall not be
approved by the voters on or after the effective date of this
division of this Act.
Sec. 21. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
DIVISION IV
COUNTY SHERIFF FEE REPORT
Sec. 22. Section 331.655, subsection 5, Code 2023, is
amended by striking the subsection.
DIVISION V
Homestead property tax credit
Sec. 23. Section 2.48, subsection 3, paragraph f,
subparagraph (1), Code 2023, is amended to read as follows:
(1) The homestead tax exemption and credit under chapter
425.
Sec. 24. Section 25B.7, subsection 2, paragraph a, Code
2023, is amended to read as follows:
a. Homestead tax credit pursuant to sections section 425.1,
sections 425.2 through 425.13, and section425.15.
Sec. 25. Section 103.22, subsection 7, Code 2023, is amended
to read as follows:
7. Prohibit an owner of property from performing work on the
-20-owner’s principal residence, if such residence is an existing
dwelling rather than new construction and is not an apartment
that is attached to any other apartment or building, as those
terms are defined in section 499B.2, and is not larger than a
single-family dwelling, or require such owner to be licensed
under this chapter. In order to qualify for inapplicability
pursuant to this subsection, a residence shall qualify for the
homestead tax exemption credit.
Sec. 26. Section 105.11, subsection 3, Code 2023, is amended
to read as follows:
3. Prohibit an owner of property from performing work on the
owner’s principal residence, if such residence is an existing
dwelling rather than new construction and is not larger than a
single-family dwelling, or farm property, excluding commercial
or industrial installations or installations in public use
buildings or facilities, or require such owner to be licensed
under this chapter. In order to qualify for inapplicability
pursuant to this subsection, a residence shall qualify for the
homestead tax exemption credit.
Sec. 27. Section 331.401, subsection 1, paragraphs e and f,
Code 2023, are amended to read as follows:
e. Adopt resolutions authorizing the county assessor
to provide forms for homestead tax exemption and credit
claimants as provided in section 425.2 and military service tax
exemptions as provided in section 426A.14.
f. Examine and allow or disallow claims for homestead tax
exemption and credit in accordance with section 425.3 and
claims for military service tax exemption in accordance with
chapter 426A. The board, by a single resolution, may allow or
disallow the exemptions recommended by the assessor.
Sec. 28. Section 331.512, subsection 3, Code 2023, is
amended to read as follows:
3. Carry out duties relating to the homestead tax exemption
and credit and agricultural land tax credit as provided in
chapters 425 and 426.
-21- Sec. 29. Section 331.559, subsection 12, Code 2023, is
amended to read as follows:
12. Carry out duties relating to the administration of
the homestead tax exemption and credit and other credits as
provided in sections 425.4, 425.5, 425.7, 425.9, 425.10, and
425.25.
Sec. 30. NEW SECTION. 425.1A Homestead tax exemption.
1. The following exemptions from taxation shall be allowed
in addition to the homestead credit for an owner that has
attained the age of sixty-five years by January 1 of the
assessment year:
a. For the assessment year beginning January 1, 2023, the
eligible homestead, not to exceed three thousand two hundred
fifty dollars in taxable value.
b. For the assessment year beginning January 1, 2024, and
each succeeding assessment year, the eligible homestead, not to
exceed six thousand five hundred dollars in taxable value.
2. Section 25B.7, subsection 1, shall not apply to the
property tax exemption provided in this section.
Sec. 31. Section 425.2, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION. 3A. The form for claiming the credit shall
also include the ability to claim the exemption under section
425.1A for qualified owners. If the claim for the homestead
credit is allowed, such allowance shall also include allowance
of the homestead exemption if the owner meets the age criteria
for the exemption. The homestead exemption shall be allowed
for successive years without further filing in the same manner
as the homestead credit.
Sec. 32. Section 425.3, subsection 4, Code 2023, is amended
to read as follows:
4. The county auditor shall forward the claims to the board
of supervisors. The board shall allow or disallow the claims.
If the board disallows a claim, it shall send written notice,
by mail, to the claimant at the claimant’s last known address.
-22-The notice shall state the reasons for disallowing the claim
for the credit. The board is not required to send notice that
a claim is disallowed if the claimant voluntarily withdraws the
claim.
Sec. 33. Section 425.4, Code 2023, is amended to read as
follows:
425.4 Certification to treasurer.
All claims which have been allowed by the board of
supervisors shall be certified on or before August 1, in each
year, by the county auditor to the county treasurer, which
certificates shall list the total amount of dollars, listed by
taxing district in the county, due for homestead tax exemptions
and credits claimed and allowed. The county treasurer shall
forthwith then certify to the department of revenue the total
amount of dollars, listed by taxing district in the county, due
for homestead tax credits claimed and allowed.
Sec. 34. Section 425.6, Code 2023, is amended to read as
follows:
425.6 Waiver by neglect.
If a person fails to file a claim or to have a claim on file
with the assessor for the credits provided in this subchapter,
the person is deemed to have waived the homestead exemption
and credit for the year in which the person failed to file the
claim or to have a claim on file with the assessor.
Sec. 35. Section 425.7, subsection 3, Code 2023, is amended
to read as follows:
3. a. If the department of revenue determines that a claim
for homestead exemption and credit has been allowed by the
board of supervisors which is not justifiable under the law
and not substantiated by proper facts, the department may, at
any time within thirty-six months from July 1 of the year in
which the claim is allowed, set aside the allowance. Notice
of the disallowance shall be given to the county auditor of
the county in which the claim has been improperly granted and
a written notice of the disallowance shall also be addressed
-23-to the claimant at the claimant’s last known address. The
claimant or board of supervisors may appeal to the director
of revenue within thirty days from the date of the notice of
disallowance. The director shall grant a hearing and if, upon
the hearing, the director determines that the disallowance was
incorrect, the director shall set aside the disallowance. The
director shall notify the claimant and the board of supervisors
of the result of the hearing. The claimant or the board of
supervisors may seek judicial review of the action of the
director of revenue in accordance with chapter 17A.
b. If a claim is disallowed by the department of revenue
and not appealed to the director of revenue or appealed to
the director of revenue and thereafter upheld upon final
resolution, including any judicial review, any amounts of
exemptions allowed and credits allowed and paid from the
homestead credit fund including the penalty, if any, become a
lien upon the property on which the exemption or credit was
originally granted, if still in the hands of the claimant,
and not in the hands of a bona fide purchaser, and any amount
so erroneously paid including the penalty, if any, shall be
collected by the county treasurer in the same manner as other
taxes and the collections shall be returned to the department
of revenue and credited to the homestead credit fund. The
director of revenue may institute legal proceedings against a
homestead credit claimant for the collection of payments made
on disallowed credits and the penalty, if any. If a person
makes a false claim or affidavit with fraudulent intent to
obtain the homestead exemption or credit, the person is guilty
of a fraudulent practice and the claim shall be disallowed
in full. If the credit has been paid, the amount of the
credit plus a penalty equal to twenty-five percent of the
amount of credit plus interest, at the rate in effect under
section 421.7, from the time of payment shall be collected
by the county treasurer in the same manner as other property
taxes, penalty, and interest are collected and when collected
-24-shall be paid to the director of revenue. If a homestead
exemption or credit is disallowed and the claimant failed to
give written notice to the assessor as required by section
425.2 when the property ceased to be used as a homestead by the
claimant, a civil penalty equal to five percent of the amount
of the disallowed exemption or credit is assessed against the
claimant.
Sec. 36. Section 425.9, subsections 2 and 3, Code 2023, are
amended to read as follows:
2. If any claim for exemption or credit made hereunder
has been denied by the board of supervisors, and such action
is subsequently reversed on appeal, the exemption or credit
shall be allowed on the homestead involved in said appeal, and
the director of revenue, the county auditor, and the county
treasurer shall make such exemption or credit and change their
books and records accordingly.
3. In the event the appealing taxpayer has paid one or both
of the installments of the tax payable in the year or years in
question on such homestead valuation, remittance shall be made
to such taxpayer of the amount of such credit or exemption.
Sec. 37. Section 425.10, Code 2023, is amended to read as
follows:
425.10 Reversal of allowed claim.
In the event any claim is allowed, and subsequently reversed
on appeal, any exemption and credit made under the claim shall
be void. The amount of the erroneous credit shall be charged
against the property in question, and the director of revenue,
the county auditor, and the county treasurer are authorized
and directed to correct their books and records accordingly.
The amount of the erroneous credit, when collected, shall
be returned by the county treasurer to the homestead credit
fund to be reallocated the following year as provided in this
subchapter. Taxes due following reversal of a claim for an
exemption shall be collected by the county treasurer and
allocated to the appropriate taxing entities.
-25- Sec. 38. Section 425.11, subsection 1, paragraph d,
subparagraph (3), Code 2023, is amended to read as follows:
(3) It must not embrace more than one dwelling house, but
where a homestead has more than one dwelling house situated
thereon, the exemption and credit provided for in this
subchapter shall apply to the home and buildings used by the
owner, but shall not apply to any other dwelling house and
buildings appurtenant.
Sec. 39. Section 425.11, subsection 1, paragraph e, Code
2023, is amended to read as follows:
e. “Owner” means the person who holds the fee simple
title to the homestead, and in addition shall mean the person
occupying as a surviving spouse or the person occupying under
a contract of purchase which contract has been recorded in
the office of the county recorder of the county in which the
property is located; or the person occupying the homestead
under devise or by operation of the inheritance laws where
the whole interest passes or where the divided interest is
shared only by persons related or formerly related to each
other by blood, marriage or adoption; or the person occupying
the homestead is a shareholder of a family farm corporation
that owns the property; or the person occupying the homestead
under a deed which conveys a divided interest where the divided
interest is shared only by persons related or formerly related
to each other by blood, marriage or adoption; or where the
person occupying the homestead holds a life estate with the
reversion interest held by a nonprofit corporation organized
under chapter 504, provided that the holder of the life estate
is liable for and pays property tax on the homestead; or where
the person occupying the homestead holds an interest in a
horizontal property regime under chapter 499B, regardless
of whether the underlying land committed to the horizontal
property regime is in fee or as a leasehold interest, provided
that the holder of the interest in the horizontal property
regime is liable for and pays property tax on the homestead;
-26-or where the person occupying the homestead is a member of a
community land trust as defined in 42 U.S.C. §12773, regardless
of whether the underlying land is in fee or as a leasehold
interest, provided that the member of the community land trust
is occupying the homestead and is liable for and pays property
tax on the homestead. For the purpose of this subchapter,
the word “owner” shall be construed to mean a bona fide owner
and not one for the purpose only of availing the person of
the benefits of this subchapter. In order to qualify for the
homestead tax exemption and credit, evidence of ownership shall
be on file in the office of the clerk of the district court
or recorded in the office of the county recorder at the time
the owner files with the assessor a verified statement of the
homestead claimed by the owner as provided in section 425.2.
Sec. 40. Section 425.12, Code 2023, is amended to read as
follows:
425.12 Indian land.
Each forty acres of land, or fraction thereof, occupied by
a member or members of the Sac and Fox Indians in Tama county,
which land is held in trust by the secretary of the interior of
the United States for said Indians, shall be given a homestead
tax exemption and credit within the meaning and under the
provisions of this subchapter. Application for such homestead
tax exemption and credit shall be made to the county auditor of
Tama county and may be made by a representative of the tribal
council.
Sec. 41. Section 425.13, Code 2023, is amended to read as
follows:
425.13 Conspiracy to defraud.
If any two or more persons conspire and confederate together
with fraudulent intent to obtain the exemption or credit
provided for under the terms of this subchapter by making a
false deed, or a false contract of purchase, they are guilty of
a fraudulent practice.
Sec. 42. Section 425.16, subsection 1, Code 2023, is amended
-27-to read as follows:
1. In addition to the homestead tax credit allowed under
section 425.1, subsections 1 through 4, and the homestead
exemption under section 425.lA, if applicable, persons who
own or rent their homesteads and who meet the qualifications
provided in this subchapter are eligible for a property
tax credit for property taxes due or reimbursement of rent
constituting property taxes paid.
Sec. 43. Section 425.17, subsections 4 and 8, Code 2023, are
amended to read as follows:
4. “Homestead” means the dwelling owned or rented and
actually used as a home by the claimant during the period
specified in subsection 2, and so much of the land surrounding
it including one or more contiguous lots or tracts of land,
as is reasonably necessary for use of the dwelling as a home,
and may consist of a part of a multidwelling or multipurpose
building and a part of the land upon which it is built. It
does not include personal property except that a manufactured
or mobile home may be a homestead. Any dwelling or a part of
a multidwelling or multipurpose building which is exempt from
taxation, except for an exemption under section 425.1A, does
not qualify as a homestead under this subchapter. However,
solely for purposes of claimants living in a property and
receiving reimbursement for rent constituting property taxes
paid immediately before the property becomes tax exempt, and
continuing to live in it after it becomes tax exempt, the
property shall continue to be classified as a homestead.
A homestead must be located in this state. When a person
is confined in a nursing home, extended-care facility, or
hospital, the person shall be considered as occupying or living
in the person’s homestead if the person is the owner of the
homestead and the person maintains the homestead and does not
lease, rent, or otherwise receive profits from other persons
for the use of the homestead.
8. “Property taxes due” means property taxes including any
-28-special assessments, but exclusive of delinquent interest and
charges for services, due on a claimant’s homestead in this
state, but includes only property taxes for which the claimant
is liable and which will actually be paid by the claimant.
However, if the claimant is a person whose property taxes have
been suspended under sections 427.8 and 427.9, “property taxes
due” means property taxes including any special assessments,
but exclusive of delinquent interest and charges for services,
due on a claimant’s homestead in this state, but includes only
property taxes for which the claimant is liable and which
would have to be paid by the claimant if the payment of the
taxes has not been suspended pursuant to sections 427.8 and
427.9. “Property taxes due” shall be computed with no deduction
for any credit under this subchapter or for any homestead
credit allowed under section 425.1 subchapter I. Each claim
shall be based upon the taxes due during the fiscal year next
following the base year. If a homestead is owned by two or
more persons as joint tenants or tenants in common, and one or
more persons are not members of claimant’s household, “property
taxes due” is that part of property taxes due on the homestead
which equals the ownership percentage of the claimant and the
claimant’s household. The county treasurer shall include with
the tax receipt a statement that if the owner of the property
is eighteen years of age or over, the person may be eligible
for the credit allowed under this subchapter. If a homestead
is an integral part of a farm, the claimant may use the total
property taxes due for the larger unit. If a homestead is an
integral part of a multidwelling or multipurpose building the
property taxes due for the purpose of this subsection shall be
prorated to reflect the portion which the value of the property
that the household occupies as its homestead is to the value
of the entire structure. For purposes of this subsection,
“unit” refers to that parcel of property covered by a single tax
statement of which the homestead is a part.
Sec. 44. Section 435.26, subsection 1, paragraph a, Code
-29-2023, is amended to read as follows:
a. A mobile home or manufactured home which is located
outside a manufactured home community or mobile home park shall
be converted to real estate by being placed on a permanent
foundation and shall be assessed for real estate taxes. A
home, after conversion to real estate, is eligible for the
homestead tax exemption and credit and the military service
tax exemption as provided in sections 425.2 and chapter 425,
subchapter I, and section 426A.11. A taxable mobile home or
manufactured home which is located outside of a manufactured
home community or mobile home park as of January 1, 1995, is
also exempt from the permanent foundation requirements of this
chapter until the home is relocated.
Sec. 45. Section 435.26A, subsection 3, Code 2023, is
amended to read as follows:
3. After the surrender of a manufactured home’s certificate
of title under this section, the manufactured home shall
continue to be taxed under section 435.22 and is not eligible
for the homestead tax exemption and credit or the military
service tax exemption and credit. A foreclosure action on a
manufactured home whose title has been surrendered under this
section shall be conducted as a real estate foreclosure. A tax
lien and its priority shall remain the same on a manufactured
home after its certificate of title has been surrendered.
Sec. 46. Section 499A.14, Code 2023, is amended to read as
follows:
499A.14 Taxation.
The real estate shall be taxed in the name of the
cooperative, and each member of the cooperative shall pay
that member’s proportionate share of the tax in accordance
with the proration formula set forth in the bylaws, and each
member occupying an apartment as a residence shall receive
that member’s proportionate homestead tax exemption and credit
and each veteran of the military services of the United States
identified as such under the laws of the state of Iowa or the
-30-United States shall receive as a credit that member’s veterans
tax benefit as prescribed by the laws of the state of Iowa.
Sec. 47. EXISTING HOMESTEAD CLAIMS. Homestead credit
claims approved under chapter 425, subchapter I, prior to and
valid on the effective date of this division of this Act shall
result in a homestead exemption under chapter 425, subchapter
I, as enacted in this division of this Act, without further
filing by the claimant if the claimant meets the criteria for
the exemption and the assessor has appropriate information to
verify such eligibility.
Sec. 48. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 49. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to assessment years beginning on or
after January 1, 2023.
DIVISION VI
MILITARY SERVICE PROPERTY TAX EXEMPTION AND CREDIT
Sec. 50. Section 25B.7, subsection 2, paragraph c, Code
2023, is amended by striking the paragraph.
Sec. 51. Section 426A.1A, Code 2023, is amended to read as
follows:
426A.1A Appropriation.
There For each fiscal year beginning before July 1, 2024,
there is appropriated from the general fund of the state the
amounts necessary to fund the credits provided under this
chapter.
Sec. 52. Section 426A.2, Code 2023, is amended to read as
follows:
426A.2 Military service tax credit.
The For each fiscal year beginning before July 1, 2024, the
moneys appropriated under section 426A.1A shall be apportioned
each year so as to replace all or a portion of the tax which
would be due on property eligible for military service tax
exemption in the state, if the property were subject to
taxation, the amount of the credit to be not more than six
-31-dollars and ninety-two cents per thousand dollars of assessed
value of property which would be subject to the tax, except for
the military service tax exemption.
Sec. 53. Section 426A.11, subsections 1 and 2, Code 2023,
are amended to read as follows:
1. The property, not to exceed two thousand seven hundred
seventy-eight dollars in taxable value for assessment years
beginning before January 1, 2023, of any veteran, as defined in
section 35.1, of World War I.
2. a. The property, not to exceed one thousand eight
hundred fifty-two dollars in taxable value for assessment years
beginning before January 1, 2023, of an honorably separated,
retired, furloughed to a reserve, placed on inactive status,
or discharged veteran, as defined in section 35.1, subsection
2, paragraph “a” or “b”.
b. The property, not to exceed four thousand dollars in
taxable value for the assessment years beginning on or after
January 1, 2023, of an honorably separated, retired, furloughed
to a reserve, placed on inactive status, or discharged veteran,
as defined in section 35.1, subsection 2, paragraph “a” or “b”.
Sec. 54. IMPLEMENTATION. Section 25B.7, subsection 1,
shall not apply to the property tax exemption provided in this
Act.
Sec. 55. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 56. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to assessment years beginning on or
after January 1, 2023.
DIVISION VII
Property tax benefits and incentives
Sec. 57. NEW SECTION. 404.3C Assessment agreements —
commercial property.
1. For revitalization areas established under this chapter
on or after the effective date of this division of this Act
and for first-year exemption applications for property located
-32-in a revitalization area in existence on the effective date
of this division of this Act filed on or after the effective
date of this division of this Act, commercial property shall
not receive a tax exemption under this chapter unless the city
or county, as applicable, and the owner of the qualified real
estate enter into a written assessment agreement specifying a
minimum actual value until a specified termination date for the
duration of the exemption period.
2. a. The assessment agreement shall be presented to the
appropriate assessor. The assessor shall review the plans and
specifications for the improvements to be made to the property
and if the minimum actual value contained in the assessment
agreement appears to be reasonable, the assessor shall execute
the following certification upon the agreement:
The undersigned assessor, being legally responsible for the
assessment of the above described property upon completion of
the improvements to be made on it, certifies that the actual
value assigned to that land and improvements upon completion
shall not be less than $.........
b. The assessment agreement with the certification of
the assessor and a copy of this subsection shall be filed in
the office of the county recorder of the county where the
property is located. Upon completion of the improvements,
the assessor shall value the property as required by law,
except that the actual value shall not be less than the minimum
actual value contained in the assessment agreement. This
subsection does not prohibit the assessor from assigning a
higher actual value to the property or prohibit the owner
from seeking administrative or legal remedies to reduce the
actual value assigned except that the actual value shall not
be reduced below the minimum actual value contained in the
assessment agreement. An assessor, county auditor, board of
review, director of revenue, or court of this state shall not
reduce or order the reduction of the actual value below the
minimum actual value in the agreement during the term of the
-33-agreement regardless of the actual value which may result from
the incomplete construction of improvements, destruction or
diminution by any cause, insured or uninsured, except in the
case of acquisition or reacquisition of the property by a
public entity. Recording of an assessment agreement complying
with this subsection constitutes notice of the assessment
agreement to a subsequent purchaser or encumbrancer of the land
or any part of it, whether voluntary or involuntary, and is
binding upon a subsequent purchaser or encumbrancer.
Sec. 58. NEW SECTION. 404.3D Exemptions for residential
property.
For revitalization areas established under this chapter on
or after the effective date of this division of this Act and
for first-year exemption applications for property located in a
revitalization area in existence on the effective date of this
division of this Act filed on or after the effective date of
this division of this Act, an exemption authorized under this
chapter for property that is residential property shall not
apply to property tax levies imposed by a school district.
Sec. 59. EFFECTIVE DATE. This division of this Act takes
effect July 1, 2024.
DIVISION VIII
transit funding
Sec. 60. Section 364.2, subsection 4, paragraph f,
subparagraph (1), subparagraph division (b), Code 2023, is
amended to read as follows:
(b) For franchise fees assessed and collected during fiscal
years beginning on or after July 1, 2013 2024, but before
July 1, 2030, by a city that is the subject of a judgment,
court-approved settlement, or court-approved compromise
providing for payment of restitution, a refund, or a return
described in section 384.3A, subsection 3, paragraph “j” with
a population exceeding two hundred thousand, the rate of the
franchise fee shall not exceed seven and one-half percent
of gross revenues generated from sales of the franchisee in
-34-the city, and franchise fee amounts assessed and collected
during such fiscal years in excess of five percent of gross
revenues generated from sales shall be used solely for the
purpose specified in section 384.3A, subsection 3, paragraph
“j”. A city may assess and collect a franchise fee in excess
of five percent of gross revenues generated from the sales
of the franchisee pursuant to this subparagraph division (b)
for a period not to exceed seven consecutive fiscal years
once the franchise fee is first imposed at a rate in excess
of five percent. An ordinance increasing the franchise fee
rate to greater than five percent pursuant to this subparagraph
division (b) shall not become effective unless approved at
an election. After passage of the ordinance, the council
shall submit the proposal at a special election held on a date
specified in section 39.2, subsection 4, paragraph “b”. If a
majority of those voting on the proposal approves the proposal,
the city may proceed as proposed. The complete text of the
ordinance shall be included on the ballot and the full text
of the ordinance posted for the voters pursuant to section
52.25. All absentee voters shall receive the full text of the
ordinance along with the absentee ballot. This subparagraph
division (b) is repealed July 1, 2030.
Sec. 61. Section 384.3A, subsection 3, paragraph j, Code
2023, is amended to read as follows:
j. For franchise fees assessed and collected by a city in
excess of five percent of gross revenues generated from sales
of the franchisee within the city pursuant to section 364.2,
subsection 4, paragraph “f”, subparagraph (1), subparagraph
division (b), during fiscal years beginning on or after July 1,
2013 2024, but before July 1, 2030, the adjustment, renewal,
or extension of any part or all of the legal indebtedness of
a city, whether evidenced by bonds, warrants, court-approved
settlements, court-approved compromises, or judgments, or the
funding or refunding of the same, if such legal indebtedness
relates to restitution, a refund, or a return ordered by a
-35-court of competent jurisdiction for franchise fees assessed
and collected by the city before June 20, 2013 solely for the
reduction of property tax levies that support the operation and
maintenance of a municipal transit system or a regional transit
district or to maintain transportation service levels of a
municipal transit system or a regional transit district. This
paragraph “j” is repealed July 1, 2030.
Sec. 62. EFFECTIVE DATE. This division of this Act takes
effect July 1, 2024.
DIVISION IX
COUNTY AUDITOR VALUATION REPORTS
Sec. 63. Section 331.510, subsections 3 and 4, Code 2023,
are amended to read as follows:
3. An annual report not later than January 1 to the
department of management of the valuation by class of property
for each taxing district in the county on forms provided by the
department of management. The valuations reported shall be
those valuations used for determining the levy rates necessary
to fund the budgets of the taxing districts for the following
fiscal year. Each annual report under this subsection for
assessment years beginning on or after January 1, 2024,
shall distinguish such values as revaluation or other type of
addition to value, as defined and submitted in the assessor’s
abstract transmitted to the department of revenue under section
441.45.
4. An annual report not later than January 1 to the
governing body of each taxing district in the county of the
assessed valuations of taxable property in the taxing district
as reported to the department of management. Each annual
report under this subsection for assessment years beginning
on or after January 1, 2024, shall distinguish such values as
revaluation or other type of addition to value, as defined
and submitted in the assessor’s abstract transmitted to the
department of revenue under section 441.45.
DIVISION X
-36-local government budgets and taxpayer statements
Sec. 64. NEW SECTION. 24.2A Budget statements to owners
and taxpayers.
1. For purposes of this section only:
a. “Budget year” is the fiscal year beginning during the
calendar year in which a budget is certified.
b. “Current fiscal year” is the fiscal year ending during
the calendar year in which a budget for the budget year is
certified.
c. “Effective property tax rate” means the property tax rate
per one thousand dollars of assessed value and is equal to
one thousand multiplied by the quotient of the current fiscal
year’s actual property tax dollars certified for levy divided
by the total assessed value used to calculate taxes for the
budget year.
d. “Political subdivision” means a school district, a
county, or a city.
2. a. On or before March 15 of each year, each political
subdivision shall file with the department of management a
report containing all necessary information for the department
of management to compile and calculate amounts required to be
included in the statements mailed under paragraph “b”.
b. Not later than March 20, the county auditor, using
information compiled and calculated by the department of
management under paragraph “a”, shall send to each property
owner or taxpayer within the county by regular mail an
individual statement containing all of the following for
each of the political subdivisions comprising the owner’s or
taxpayer’s taxing district:
(1) The sum of the current fiscal year’s actual property
taxes certified for levy for all of the political subdivision’s
levies and the combined property tax rate per one thousand
dollars for such tax amount for the current fiscal year.
(2) The combined effective property tax rate for the
political subdivision calculated using the sum of the current
-37-fiscal year’s actual property taxes certified for levy for all
of the political subdivision’s levies under subparagraph (1).
(3) The combined amount of the proposed property tax dollars
to be certified for all of the political subdivision’s levies
for the budget year and the proposed combined property tax rate
per one thousand dollars for such levies.
(4) If the proposed property tax dollars specified
under subparagraph (3) exceeds the current fiscal year’s
actual property tax dollars certified for levy specified in
subparagraph (1), a detailed statement of the major reasons for
the increase, including the specific purposes or programs for
which the political subdivision is proposing an increase.
(5) An example comparing the amount of property taxes on
a residential property with an actual value of one hundred
thousand dollars in the current fiscal year and such amount
on the residential property using the proposed property
tax dollars for the budget year, including the percentage
difference in such amounts.
(6) An example comparing the amount of property taxes
on a commercial property with an actual value of one hundred
thousand dollars in the current fiscal year and such amount on
the commercial property using the proposed property tax dollars
for the budget year, including the percentage difference in
such amounts.
(7) The political subdivision’s percentage of total
property taxes certified for levy in the owner’s or taxpayer’s
taxing district in the current fiscal year among all taxing
authorities.
(8) The date, time, and location of the political
subdivision’s public hearing required under subsection 4.
(9) Information on how to access on the political
subdivision’s internet site the political subdivision’s
statements under this section and other budget documents for
prior fiscal years.
3. The department of management shall prescribe the form
-38-for the report required under subsection 2, paragraph “a”, the
statements required to be mailed under subsection 2, paragraph
“b”, and the public hearing notice required under subsection 4,
paragraph “b”.
4. a. Each political subdivision shall set a time and
place for a public hearing on the political subdivision’s
proposed property tax amount for the budget year and the
political subdivision’s information included in the statements
under subsection 2. At the hearing, the governing body
of the political subdivision shall receive oral or written
testimony from any resident or property owner of the political
subdivision. This public hearing shall be separate from
any other meeting of the governing body of the political
subdivision, including any other meeting or public hearing
relating to the political subdivision’s budget, and other
business of the political subdivision that is not related to
the proposed property tax amounts and the information in the
statements shall not be conducted at the public hearing. After
all testimony has been received and considered, the governing
body may decrease, but not increase, the proposed property tax
amount to be included in the political subdivision’s budget.
b. (1) If the political subdivision is a county, notice
of the public hearing shall be published not less than ten
nor more than twenty days prior to the hearing in the county
newspapers selected under chapter 349.
(2) If the political subdivision is a city, notice of the
public hearing shall be published not less than ten nor more
than twenty days prior to the hearing in a newspaper published
at least once weekly and having general circulation in the
city. However, if the city has a population of two hundred or
less, publication may be made by posting in three public places
in the city.
(3) If the political subdivision is a school district,
notice of the public hearing shall be published not less
than ten nor more than twenty days prior to the hearing in
-39-a newspaper published in the school district, if any, and if
not, then in a newspaper of general circulation in the school
district.
c. Notice of the hearing shall also be posted and clearly
identified on the political subdivision’s internet site
for public viewing beginning on the date of the newspaper
publication and shall be maintained on the political
subdivision’s internet site with all such prior year notices
and copies of the statements mailed under subsection 2.
Additionally, if the political subdivision maintains a social
media account on one or more social media applications, the
public hearing notice or an electronic link to the public
hearing notice shall be posted on each such account on the same
day as the publication of the notice.
Sec. 65. Section 24.3, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
A municipality shall not certify or levy in any fiscal year
any tax on property subject to taxation unless and until the
following estimates have been made, filed, and considered,
and for school districts, the individual statements have been
mailed and public hearings held, as provided in this chapter:
Sec. 66. Section 24.10, Code 2023, is amended to read as
follows:
24.10 Levies void.
The verified proof of the publication of the notice under
section 24.9 shall be filed in the office of the county auditor
and preserved by the auditor. A levy shall not be valid unless
and until that notice is such notices are published, mailed,
and filed. However, failure of an owner or taxpayer to receive
a statement under section 24.2A shall not invalidate a levy.
Sec. 67. Section 24.17, subsection 1, Code 2023, is amended
to read as follows:
1. The local budgets of the various political subdivisions
shall be certified by the chairperson of the certifying
board or levying board, as the case may be, in duplicate to
-40-the county auditor not later than March 15 April 30 of each
year on forms, and pursuant to instructions, prescribed by
the department of management. However, if the political
subdivision is a county or a city, its budget shall be
certified not later than March 31 of each year, and if the
political subdivision is a school district, as defined in
section 257.2, its budget shall be certified not later than
April 15 of each year.
Sec. 68. Section 24.27, subsection 1, Code 2023, is amended
to read as follows:
1. Not later than March 25, or April 10 for a county or
a city, or April 25 if the municipality is a school district
May 10, a number of persons in any municipality political
subdivision equal to one-fourth of one percent of those voting
for the office of governor, at the last general election in the
municipality political subdivision, but the number shall not be
less than ten, and the number need not be more than one hundred
persons, who are affected by any proposed budget, expenditure
or tax levy, or by any item thereof, may appeal from any
decision of the certifying board or the levying board by filing
with the county auditor of the county in which the municipal
corporation political subdivision is located, a written protest
setting forth their objections to the budget, expenditure or
tax levy, or to one or more items thereof, and the grounds for
their objections. If a budget is certified after March 15, or
March 31 in the case of a county or a city, or April 15 in the
case of a school district 30, all appeal time limits shall be
extended to correspond to allowances for a timely filing.
Sec. 69. Section 24.28, Code 2023, is amended to read as
follows:
24.28 Hearing on protest.
The state board, within a reasonable time, shall fix a date
for an initial hearing on the protest and may designate a
deputy to hold the hearing, which shall be held in the county
or in one of the counties in which the municipality political
-41-subdivision is located. Notice of the time and place of the
hearing shall be given by certified mail to the appropriate
officials of the local government and to the first ten property
owners whose names appear upon the protest, at least five
days before the date fixed for the hearing. At all hearings,
the burden shall be upon the objectors with reference to any
proposed item in the budget which was included in the budget
of the previous year and which the objectors propose should
be reduced or excluded; but the burden shall be upon the
certifying board or the levying board, as the case may be,
to show that any new item in the budget, or any increase in
any item in the budget, is necessary, reasonable, and in the
interest of the public welfare.
Sec. 70. Section 24.48, subsection 4, Code 2023, is amended
to read as follows:
4. The city finance committee shall have officially
notified any city of its approval, modification or rejection
of the city’s appeal of the decision of the director of the
department of management regarding a city’s request for a
suspension of the statutory property tax levy limitation prior
to thirty-five days before March 31 April 30.
Sec. 71. Section 275.29, subsection 1, Code 2023, is amended
to read as follows:
1. Between July 1 and July 20, or on a date determined by
agreement of the initial board and the boards of districts
receiving territory of the school districts affected, but not
later than August 30, the initial board shall meet with the
boards of districts receiving territory of the school districts
affected, for the purpose of reaching joint agreement on an
equitable division of the assets and an equitable distribution
of the liabilities of the school districts affected. In
addition, if outstanding general obligation indebtedness is in
existence in any district, the initial board of directors of
the newly formed school district shall meet with the boards of
all school districts affected prior to April 15 30 prior to
-42-the school year the reorganization is effective to determine
the distribution of liability for payment of the general
obligation bonded indebtedness between the districts so that
the newly formed district may certify its budget under the
procedures specified in chapter 24. The boards shall consider
the mandatory levy required in section 76.2 and shall assure
the satisfaction of outstanding obligations. If a school
district affected by the reorganization has outstanding bonds
issued under section 423E.5 or 423F.4, the joint agreement
shall assure that the estimated revenue under section 423F.2
for each district to which liability for payment of such bonds
is assigned is sufficient for the payment of principal and
interest on the outstanding bonds required to be paid in the
budget year following reorganization.
Sec. 72. Section 298.2, subsection 1, paragraph b, Code
2023, is amended to read as follows:
b. For school budget years beginning on or after July 1,
2015, a school district may by resolution of the board of
directors adopted prior to April 15 30 preceding the budget
year impose a physical plant and equipment levy at a rate in
excess of the levy rate limitations under paragraph “a” if the
board has refunded or refinanced a loan agreement entered into
under section 297.36 and such refunding or refinancing complies
with the maturity period authorized under section 297.36,
subsection 1, paragraph “c”, and results in a lower amount of
interest on the amount of the loan agreement. However, the
rate imposed by a school district under this paragraph shall
not exceed the rate imposed during the budget year in which
the loan agreement was refunded or refinanced. Authorization
to exceed the levy rate limitations of paragraph “a” shall
terminate upon the maturity of the loan agreement after
refunding or refinancing. Upon adoption of the resolution
under this paragraph “b”, the board shall comply with the
requirements of section 297.36, subsection 1, paragraph “b”.
Sec. 73. Section 298.2, subsection 3, Code 2023, is amended
-43-to read as follows:
3. The board of directors of a school district may certify
for levy by April 15 30 of a school year a tax on all taxable
property in the school district for the regular physical plant
and equipment levy.
Sec. 74. Section 298.2, subsection 4, paragraph b, Code
2023, is amended to read as follows:
b. If a combination of a property tax and income surtax is
used, by April 15 30 of the previous school year, the board
shall certify the percent of the income surtax to be imposed
and the amount to be raised to the department of management
and the department of management shall establish the rate of
the property tax and income surtax for the school year. The
physical plant and equipment property tax and income surtax
shall be levied or imposed, collected, and paid to the school
district in the manner provided for the instructional support
program in sections 257.21 through 257.26.
Sec. 75. Section 298.4, subsection 1, unnumbered paragraph
1, Code 2023, is amended to read as follows:
The board of directors of a school district may certify for
levy by April 15 30 of a school year, a tax on all taxable
property in the school district for a district management levy.
The revenue from the tax levied in this section shall be placed
in the district management levy fund of the school district.
The district management levy shall be expended only for the
following purposes:
Sec. 76. Section 298.10, subsection 1, Code 2023, is amended
to read as follows:
1. The board of directors of a school district may certify
for levy by April 15 30 of a school year, a tax on all taxable
property in the school district in order to raise an amount
for a necessary cash reserve for a school district’s general
fund. The amount raised for a necessary cash reserve does not
increase a school district’s authorized expenditures as defined
in section 257.7.
-44- Sec. 77. Section 300.2, subsection 2, Code 2023, is amended
to read as follows:
2. If a majority of the votes cast upon the proposition is
in favor of the proposition, the board shall certify the amount
required for a fiscal year to the county board of supervisors
by April 15 30 of the preceding fiscal year. The board of
supervisors shall levy the amount certified. The amount shall
be placed in the public education and recreation levy fund of
the district and shall be used only for the purposes specified
in this chapter.
Sec. 78. Section 303.66, subsection 2, Code 2023, is amended
to read as follows:
2. Taxes levied by the board shall be certified on or
before the first day of March April 30 to the county auditor
of each county where any of the property included within the
territorial limits of the land use district is located, and
shall be placed upon the tax list for the current year. The
county treasurer shall collect the taxes in the same manner as
other taxes. When delinquent, the taxes shall draw the same
interest and penalties as other taxes. All taxes so levied and
collected shall be paid over to the treasurer of the district.
Sec. 79. Section 309.22, subsection 1, Code 2023, is amended
to read as follows:
1. On or before the fifteenth day of April May 15 of
each year the board of supervisors, with the assistance of
the county engineer, shall, subject to the approval of the
department, adopt a secondary road construction program which
shall include a project accomplishment list for the next
fiscal year, and a project priority list for the succeeding
four fiscal years based upon the construction funds, local
secondary and farm-to-market, estimated to be available for the
period. Subject to departmental approval, any project on the
approved priority list may be advanced to and constructed in
the accomplishment year and the project accomplishment list may
be revised due to unforeseen conditions.
-45- Sec. 80. Section 331.422, unnumbered paragraph 1, Code
2023, is amended to read as follows:
Subject to this section and sections 331.423 through 331.426
or as otherwise provided by state law, the board of each county
shall certify property taxes annually at its March April
session to be levied for county purposes as follows:
Sec. 81. Section 331.434, unnumbered paragraph 1, Code
2023, is amended to read as follows:
Annually, the board of each county, subject to section
331.403, subsection 4, sections 331.423 through 331.426,
section 331.433A, the applicable portions of chapter 24, and
other applicable state law, shall prepare and adopt a budget,
certify taxes, and provide appropriations as follows:
Sec. 82. Section 331.434, subsection 3, Code 2023, is
amended to read as follows:
3. Following, and not until, adoption of the resolution
under section 331.433A, the requirements of section 24.2A are
completed, the board shall set a time and place for a public
hearing on the budget before the final certification date and
shall publish notice of the hearing not less than ten nor more
than twenty days prior to the hearing in the county newspapers
selected under chapter 349. A summary of the proposed budget
and a description of the procedure for protesting the county
budget under section 331.436, in the form prescribed by the
director of the department of management, shall be included
in the notice. Proof of publication of the notice under this
subsection 3and a copy of the resolution adopted under section
331.433A shall be filed with and preserved by the county
auditor. A levy is not valid unless and until the notice is
published and the notice and resolution adopted under section
331.433A are filed individual statements under section 24.2A
are mailed. The department of management shall prescribe the
form for the public hearing notice for use by counties.
Sec. 83. Section 331.434, subsection 5, paragraph a, Code
2023, is amended to read as follows:
-46- a. After the hearing, the board shall adopt by resolution
a budget and certificate of taxes for the next fiscal year
and shall direct the auditor to properly certify and file the
budget and certificate of taxes as adopted. The board shall
not adopt a tax in excess of the estimate published or the
applicable amounts specified in the resolution adopted under
section 331.433A, except a tax which is approved by a vote of
the people, and a greater tax than that adopted shall not be
levied or collected. A county budget and certificate of taxes
adopted for the following fiscal year becomes effective on the
first day of that year.
Sec. 84. Section 331.434, subsection 7, Code 2023, is
amended to read as follows:
7. Taxes levied by a county whose budget is certified after
March 31 April 30 shall be limited to the prior year’s budget
amount. However, this penalty may be waived by the director
of the department of management if the county demonstrates
that the March 31 deadline was missed because of circumstances
beyond the control of the county.
Sec. 85. Section 331.435, subsection 2, Code 2023, is
amended to read as follows:
2. The board shall prepare and adopt a budget amendment in
the same manner as the original budget as provided in section
331.434, but excluding the requirements for adoption of the
resolution under section 331.433A mailing individual statements
under section 24.2A, and the amendment is subject to protest as
provided in section 331.436, except that the director of the
department of management may by rule provide that amendments
of certain types or up to certain amounts may be made without
public hearing and without being subject to protest. A county
budget for the ensuing fiscal year shall be amended by May 31
to allow time for a protest hearing to be held and a decision
rendered before June 30. An amendment of a budget after May
31 which is properly appealed but without adequate time for
hearing and decision before June 30 is void.
-47- Sec. 86. Section 331.436, Code 2023, is amended to read as
follows:
331.436 Protest.
Protests to the adopted budget must be made in accordance
with sections 24.27 through 24.32 as if the county were the
municipality under those sections except that the protest must
be filed no later than April May 10 and the number of people
necessary to file a protest under this section shall not be
less than one hundred.
Sec. 87. Section 347.13, subsection 12, Code 2023, is
amended to read as follows:
12. Fix the amount necessary for the improvement and
maintenance of the hospital and for support of ambulance
service during the ensuing fiscal year, and certify the amount
to the county auditor before March 15 April 30 of each year,
subject to any limitation in section 347.7.
Sec. 88. Section 358.18, subsection 2, as amended by 2023
Iowa Acts, House File 541, section 1, if enacted, is amended
to read as follows:
2. All taxes thus levied by the board of trustees shall
be certified by the clerk on or before March 15 April 30 to
the county auditor of each county wherein any of the property
included within the territorial limits of the sanitary district
is located, and shall be placed upon the tax list for the
current fiscal year by the auditor or auditors. The county
treasurer, or treasurers, of more than one county, shall
collect all taxes so levied in the same manner as other taxes,
and when delinquent the taxes shall draw the same interest.
All taxes levied and collected shall be paid over by the
officer collecting the taxes to the treasurer of the sanitary
district.
Sec. 89. Section 358C.14, subsection 2, Code 2023, is
amended to read as follows:
2. All taxes thus levied by the board shall be certified by
the clerk on or before March 1 April 30 to the county auditor
-48-of each county in which any of the property included within
the territorial limits of the district is located, and shall
be placed upon the tax list for the current fiscal year by the
auditor. The county treasurer of more than one county shall
collect all taxes so levied in the same manner as other taxes,
and when delinquent the taxes shall draw the same interest.
All taxes levied and collected shall be paid over by the
officer collecting the taxes to the treasurer of the district.
Sec. 90. Section 359.49, subsections 7 and 9, Code 2023, are
amended to read as follows:
7. After the meeting on the proposed budget, the board of
trustees shall adopt by resolution a budget for at least the
next fiscal year, and the clerk shall certify the necessary
tax levy for the next fiscal year to the county auditor and
the county board of supervisors by March 15 April 30. The tax
levy certified may be less than but shall not be more than
the amount estimated in the proposed budget submitted at the
meeting. Two copies each of the detailed budget as adopted and
of the certified tax levy must be transmitted to the county
auditor by March 15 April 30.
9. Taxes from a township levy shall be collected but not
disbursed by the county to a township until copies of the
township budget are transmitted to the county auditor as
required in subsection 7. If a township fails to certify
property taxes by March 15 April 30, the amount of taxes
collected by the county for the township shall be the amount
collected for the township in the previous fiscal year to the
extent that it does not exceed the applicable levy rate limits
in this chapter. However, that amount may not exceed the
amount the township could collect based on property assessments
for the fiscal year for which the township failed to certify
property taxes.
Sec. 91. Section 384.2, subsection 1, Code 2023, is amended
to read as follows:
1. Except as otherwise provided for special charter cities,
-49-a city’s fiscal year shall be as provided in section 24.2,
subsection 3. All city property taxes must be certified by
a city to the county auditor on or before March 31 April
30 of each year, unless otherwise provided by state law.
However, municipal utilities, if not supported by taxation
or the proceeds of outstanding indebtedness payable from
taxes may, with the council’s consent, choose to operate on a
fiscal year which is the calendar year. The receipt by the
utility of payments from other governmental funds for public
fire protection, street lighting, or other public use of the
utility’s services shall not be deemed support by taxation.
After notice and hearing in the same manner as required for the
city’s regular budget under section 384.16, the utility budget
must be approved by resolution of the council not later than
twenty days prior to the beginning of the calendar year for
which the budget applies.
Sec. 92. Section 384.16, unnumbered paragraph 1, Code 2023,
is amended to read as follows:
Annually, a city that has satisfied the requirements of
section 384.15A andsection 384.22, subsection 3, and the
applicable portions of chapter 24, shall prepare and adopt a
budget, and shall certify taxes as follows:
Sec. 93. Section 384.16, subsections 3, 5, and 6, Code 2023,
are amended to read as follows:
3. Following, and not until, adoption of the resolution
under section 384.15A, requirements of section 24.2A are
completed, the council shall set a time and place for public
hearing on the budget before the final certification date and
shall publish notice of the hearing not less than ten nor more
than twenty days before the hearing in a newspaper published
at least once weekly and having general circulation in the
city. However, if the city has a population of two hundred
or less, publication may be made by posting in three public
places in the city. A summary of the proposed budget and a
description of the procedure for protesting the city budget
-50-under section 384.19, in the form prescribed by the director of
the department of management, shall be included in the notice.
Proof of publication of the notice under this subsection 3and
a copy of the resolution adopted under section 384.15A must be
filed with the county auditor. The department of management
shall prescribe the form for the public hearing notice for use
by cities.
5. After the hearing, the council shall adopt by resolution
a budget for at least the next fiscal year, and the clerk
shall certify the necessary tax levy for the next fiscal year
to the county auditor and the county board of supervisors.
The tax levy certified may be less than but not more than
the amount estimated in the proposed budget submitted at
the final hearing or the applicable amount specified in the
resolution adopted under section 384.15A, unless an additional
tax levy is approved at a city election. Two copies each of
the detailed budget as adopted and of the tax certificate must
be transmitted to the county auditor, who shall complete the
certificates and transmit a copy of each to the department of
management.
6. Taxes levied by a city whose budget is certified after
March 31 April 30 shall be limited to the prior year’s budget
amount. However, this penalty may be waived by the director of
the department of management if the city demonstrates that the
March 31 deadline was missed because of circumstances beyond
the control of the city.
Sec. 94. Section 384.17, Code 2023, is amended to read as
follows:
384.17 Levy by county.
At the time required by law, the county board of supervisors
shall levy the taxes necessary for each city fund for the
following fiscal year. The levy must be as shown in the
adopted city budget and as certified by the clerk, subject to
any changes made after a protest hearing, and any additional
tax rates approved at a city election. A city levy is not valid
-51-until proof of publication or posting of notice of a budget
hearing under section 384.16, subsection 3, and the notice and
resolution adopted under section 384.15A are is filed with
the county auditor and individual statements are mailed under
section 24.2A.
Sec. 95. Section 384.18, subsection 2, Code 2023, is amended
to read as follows:
2. A budget amendment must be prepared and adopted in the
same manner as the original budget, as provided in section
384.16, excluding the requirement for the mailing of individual
statements under section 24.2A, and is subject to protest as
provided in section 384.19, except that the committee may by
rule provide that amendments of certain types or up to certain
amounts may be made without public hearing and without being
subject to protest. A city budget shall be amended by May
31 of the current fiscal year to allow time for a protest
hearing to be held and a decision rendered before June 30. The
amendment of a budget after May 31, which is properly appealed
but without adequate time for hearing and decision before June
30 is void.
Sec. 96. REPEAL. Sections 331.433A and 384.15A, Code 2023,
are repealed.
Sec. 97. IMPLEMENTATION. Section 25B.2, subsection 3,
shall not apply to this division of this Act.
Sec. 98. APPLICABILITY. This division of this Act applies
to political subdivision budgets for fiscal years beginning on
or after July 1, 2024.
DIVISION XI
DRIVER’S LICENSES AND NONOPERATOR’S IDENTIFICATION CARDS
Sec. 99. Section 321M.9, subsection 1, paragraph a, Code
2023, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH. (4) The ten-dollar convenience fee
collected pursuant to subsection 1A.
Sec. 100. Section 321M.9, Code 2023, is amended by adding
the following new subsection:
-52- NEW SUBSECTION. 1A. Convenience fee. A county authorized
to issue driver’s licenses under this chapter may charge, in
addition to any other fee imposed by law, a convenience fee for
the issuance or renewal of a driver’s license or nonoperator’s
identification card to a person who is not a resident of the
county, unless that person pays property tax to the county
and provides proof of payment such as a receipt as provided
in section 445.5, subsection 6, or another form of proof as
determined by the county. The convenience fee shall be ten
dollars.
DIVISION XII
writing fees
Sec. 101. Section 321G.27, subsection 1, paragraphs a, b,
and c, Code 2023, are amended by striking the paragraphs.
Sec. 102. Section 321G.27, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. 0d. The county recorder shall collect
a writing fee of two dollars for each privilege under this
chapter.
Sec. 103. Section 321G.29, subsection 3, Code 2023, is
amended to read as follows:
3. An owner of a snowmobile shall apply to the county
recorder for issuance of a certificate of title within thirty
days after acquisition. The application shall be on forms
the department prescribes and accompanied by the required fee
specified in section 321G.30 and the writing fee specified in
section 321G.27. The application shall include a certification
signed in writing containing substantially the representation
that statements made are true and correct to the best of the
applicant’s knowledge, information, and belief, under penalty
of perjury. The application shall contain the date of sale
and gross price of the snowmobile or the fair market value if
no sale immediately preceded the transfer and any additional
information the department requires. If the application is
made for a snowmobile last previously registered or titled in
-53-another state or foreign country, the application shall contain
this information and any other information the department
requires.
Sec. 104. Section 321G.31, Code 2023, is amended to read as
follows:
321G.31 Transfer or repossession by operation of law.
1. If ownership of a snowmobile is transferred by
operation of law, such as by inheritance, order in bankruptcy,
insolvency, replevin, or execution sale, the transferee, within
thirty days after acquiring the right to possession of the
snowmobile, shall mail or deliver to the county recorder of
the transferee’s county of residence satisfactory proof of
ownership as the county recorder requires, together with an
application for a new certificate of title, and the required
fee, plus the writing fee specified in section 321G.27.
However, if the transferee is the surviving spouse of the
deceased owner, the county recorder shall waive the required
fee fees.
2. If a lienholder repossesses a snowmobile by operation of
law and holds it for resale, the lienholder shall secure a new
certificate of title and shall pay the required fee, plus the
writing fee specified in section 321G.27.
Sec. 105. Section 321G.32, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. c. The application shall be accompanied by
the writing fee specified in section 321G.27.
Sec. 106. Section 321I.29, subsection 1, paragraphs a, b,
and c, Code 2023, are amended by striking the paragraphs.
Sec. 107. Section 321I.29, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. 0d. The county recorder shall collect
a writing fee of two dollars for each privilege under this
chapter.
Sec. 108. Section 321I.31, subsection 3, Code 2023, is
amended to read as follows:
-54- 3. An owner of an all-terrain vehicle shall apply to
the county recorder for issuance of a certificate of title
within thirty days after acquisition. The application shall
be on forms the department prescribes and accompanied by the
required fee specified in section 321I.32 and the writing fee
specified in section 321I.29. The application shall include a
certification signed in writing containing substantially the
representation that statements made are true and correct to the
best of the applicant’s knowledge, information, and belief,
under penalty of perjury. The application shall contain the
date of sale and gross price of the all-terrain vehicle or the
fair market value if no sale immediately preceded the transfer
and any additional information the department requires. If the
application is made for an all-terrain vehicle last previously
registered or titled in another state or foreign country,
the application shall contain this information and any other
information the department requires.
Sec. 109. Section 321I.33, Code 2023, is amended to read as
follows:
321I.33 Transfer or repossession by operation of law.
1. If ownership of an all-terrain vehicle is transferred by
operation of law, such as by inheritance, order in bankruptcy,
insolvency, replevin, or execution sale, the transferee,
within thirty days after acquiring the right to possession of
the all-terrain vehicle, shall mail or deliver to the county
recorder of the transferee’s county of residence satisfactory
proof of ownership as the county recorder requires, together
with an application for a new certificate of title, and
the required fee, plus the writing fee specified in section
321I.29. However, if the transferee is the surviving spouse
of the deceased owner, the county recorder shall waive the
required fee fees.
2. If a lienholder repossesses an all-terrain vehicle by
operation of law and holds it for resale, the lienholder shall
secure a new certificate of title and shall pay the required
-55-fee, plus the writing fee specified in section 321I.29.
Sec. 110. Section 321I.34, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. c. The application shall be accompanied by
the writing fee specified in section 321I.29.
Sec. 111. Section 462A.53, Code 2023, is amended to read as
follows:
462A.53 Amount of writing fees.
A writing fee of one dollar and twenty-five cents two dollars
for each privilege shall be collected by the county recorder.
Sec. 112. Section 462A.77, subsection 4, Code 2023, is
amended to read as follows:
4. Every owner of a vessel subject to titling under this
chapter shall apply to the county recorder for issuance of a
certificate of title for the vessel within thirty days after
acquisition. The application shall be on forms the department
prescribes, and accompanied by the required fee specified
in section 462A.78 and the writing fee specified in section
462A.53. The application shall be signed and shall include a
certification signed in writing containing substantially the
representation that statements made are true and correct to the
best of the applicant’s knowledge, information, and belief,
under penalty of perjury. The application shall contain
the date of sale and gross price of the vessel or the fair
market value if no sale immediately preceded the transfer, and
any additional information the department requires. If the
application is made for a vessel last previously registered or
titled in another state or foreign country, it shall contain
this information and any other information the department
requires.
Sec. 113. Section 462A.82, subsections 1 and 2, Code 2023,
are amended to read as follows:
1. If ownership of a vessel is transferred by operation of
law, such as by inheritance, order in bankruptcy, insolvency,
replevin, execution sale, or in compliance with section 578A.7,
-56-the transferee, within thirty days after acquiring the right
to possession of the vessel by operation of law, shall mail or
deliver to the county recorder satisfactory proof of ownership
as the county recorder requires, together with an application
for a new certificate of title, and the required fee, plus the
writing fee specified in section 462A.53. However, if the
transferee is the surviving spouse of the deceased owner, the
county recorder shall waive the required fee fees. A title tax
is not required on these transactions.
2. If a lienholder repossesses a vessel by operation of
law and holds it for resale, the lienholder shall secure a new
certificate of title and shall pay the required fee, plus the
writing fee specified in section 462A.53.
Sec. 114. Section 462A.84, subsection 1, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. c. The application shall be accompanied by
the writing fee specified in section 462A.53.
DIVISION XIII
BOND ELECtions
Sec. 115. Section 28E.16, Code 2023, is amended to read as
follows:
28E.16 Election for bonds.
When bonds which require a vote of the people are to be
issued for financing joint facilities of a county and one or
more cities within the county, pursuant to an agreement made
under the authority of this chapter, or pursuant to other
provisions of law, the board of supervisors and the council of
each city shall arrange for a single election on the question
of issuing the bonds, but if the county and the cities are
proposing to make separate bond issues, the ballot shall
contain separate questions, one to be voted upon by all voters
of the county, and one or more to be voted upon only by the
voters of the city which is to make a separate bond issue. All
elections on the question of issuing the bonds shall be held on
the date specified in section 39.2, subsection 4, paragraph “d”.
-57- Sec. 116. Section 39.2, subsection 4, Code 2023, is amended
to read as follows:
4. Unless otherwise provided by law, special elections on
public measures are limited to the following dates:
a. For Except as provided in paragraph “d”, for a county, in
an odd-numbered year, the first Tuesday in March, the second
Tuesday in September, or the first Tuesday after the first
Monday in November. For a county, in an even-numbered year,
the first Tuesday in March, the second Tuesday in September, or
the first Tuesday after the first Monday in November.
b. For Except as provided in paragraph “d”, for a city, in
an odd-numbered year, the first Tuesday in March, the second
Tuesday in September, or the first Tuesday after the first
Monday in November. For a city, in an even-numbered year, the
first Tuesday in March or the second Tuesday in September.
c. For Except as provided in paragraph “d”, for a school
district or merged area, in the odd-numbered year, the first
Tuesday in March, the second Tuesday in September, or the first
Tuesday after the first Monday in November. For a school
district or merged area, in the even-numbered year, the first
Tuesday in March, or the second Tuesday in September.
d. For any political subdivision of this state, if the
special election is in whole or in part for the question of
issuing bonds or other indebtedness, the first Tuesday after
the first Monday in November.
Sec. 117. NEW SECTION. 39.5 Notice of bond election.
In addition to any other notice related to the election
required by law to be published, posted, or provided, if the
election is subject to section 39.2, subsection 4, paragraph
“d”, the commissioner shall not less than ten nor more than
twenty days before the day of each election mail to each
registered voter of the applicable jurisdiction a notice of the
election that includes the full text of the public measure to
be voted upon at the election.
Sec. 118. Section 75.1, subsection 1, paragraph a, Code
-58-2023, is amended to read as follows:
a. When a proposition to authorize an issuance of bonds
by a county, township, school corporation, city, or by any
local board or commission, is submitted to the electors, such
proposition shall not be deemed carried or adopted, anything
in the statutes to the contrary notwithstanding, unless the
vote in favor of such authorization is equal to at least sixty
percent of the total vote cast for and against said proposition
at said election. All elections on such proposition shall
be held on the date specified in section 39.2, subsection 4,
paragraph “d”.
Sec. 119. Section 75.1, subsection 2, Code 2023, is amended
by striking the subsection.
Sec. 120. Section 279.39, Code 2023, is amended to read as
follows:
279.39 School buildings.
The board of any school corporation shall establish
attendance centers and provide suitable buildings for each
school in the district and may at the regular or a special
meeting resolve to submit to the registered voters of the
district at an election held on a date specified in section
39.2, subsection 4, paragraph “c”, the question of voting a tax
or authorizing the board to issue bonds, or both.
Sec. 121. Section 296.3, Code 2023, is amended to read as
follows:
296.3 Election called.
Within ten days of receipt of a petition filed under section
296.2, the president of the board of directors shall call a
meeting of the board. The meeting shall be held within thirty
days after the petition was received. At the meeting, the
board shall call the election, fixing the time of the election,
which may be at the time and place of holding the regular
school election as required by section 39.2, subsection 4,
paragraph “d”. However, if the board determines by unanimous
vote that the proposition or propositions requested by a
-59-petition to be submitted at an election are grossly unrealistic
or contrary to the needs of the school district, no election
shall be called. If more than one petition has been received
by the time the board meets to consider the petition triggering
the meeting, the board shall act upon the petitions in the
order they were received at the meeting called to consider the
initial petition. The decision of the board may be appealed to
the state board of education as provided in chapter 290. The
president shall notify the county commissioner of elections of
the time of the election.
Sec. 122. Section 298.21, unnumbered paragraph 1, Code
2023, is amended to read as follows:
The board of directors of any school corporation when
authorized by the voters at an election held on a date
specified in section 39.2, subsection 4, paragraph “c” “d”,
may issue the negotiable, interest-bearing school bonds of the
corporation for borrowing money for any or all of the following
purposes:
Sec. 123. Section 331.442, subsection 3, Code 2023, is
amended to read as follows:
3. a. All elections held pursuant to this section shall
be held on the date specified in section 39.2, subsection 4,
paragraph “d”.
b. Notice of the election shall be given by publication as
specified in section 331.305. At the election the ballot used
for the submission of the proposition shall be in substantially
the form for submitting special questions at general elections.
Sec. 124. Section 346.27, subsection 10, paragraph a, Code
2023, is amended to read as follows:
a. After the incorporation of an authority, and before the
sale of any issue of revenue bonds, except refunding bonds, the
authority shall submit to the voters the question of whether
the authority shall issue and sell revenue bonds. The ballot
shall state the amount of the bonds and the purposes for
which the authority is incorporated. All registered voters
-60-of the county shall be entitled to vote on the question. The
question may shall be submitted at an election held on a the
date specified in section 39.2, subsection 4, paragraph “a” or
“b”, as applicable “d”. An affirmative vote of a majority of
the votes cast on the question is required to authorize the
issuance and sale of revenue bonds.
Sec. 125. Section 357C.10, Code 2023, is amended to read as
follows:
357C.10 Bonds in anticipation of revenue.
Benefited street lighting districts may anticipate the
collection of taxes by the levy herein provided, and to carry
out the purposes of this chapter may issue bonds payable
in not more than ten equal installments, with the rate of
interest thereon not exceeding that permitted by chapter 74A.
No indebtedness shall be incurred under this chapter until
authorized by an election. Such election shall be held and
notice given in the same manner as the election provided herein
for the authorization of a tax levy, and the same sixty percent
vote shall be necessary to authorize indebtedness. Both
Subject to section 39.2, subsection 4, both propositions may be
submitted to the voters in the same election.
Sec. 126. Section 357D.11, Code 2023, is amended to read as
follows:
357D.11 Bonds in anticipation of revenue.
A district may anticipate the collection of taxes by the
levy authorized in this chapter, and to carry out the purposes
of this chapter may issue bonds payable in not more than ten
equal installments with the rate of interest not exceeding
that permitted by chapter 74A. An indebtedness shall not be
incurred under this chapter until authorized by an election.
The election shall be held and notice given in the same manner
as provided in section 357D.8, and the same sixty percent vote
shall be necessary to authorize indebtedness. Both Subject to
section 39.2, subsection 4, both propositions may be submitted
to the voters at the same election.
-61- Sec. 127. Section 357E.11, Code 2023, is amended to read as
follows:
357E.11 Bonds in anticipation of revenue.
A district, other than a combined district, may anticipate
the collection of taxes by the levy authorized in this chapter,
and to carry out the purposes of this chapter may issue bonds
payable in not more than twenty equal installments with the
rate of interest not exceeding that permitted by chapter 74A.
An indebtedness shall not be incurred under this section
until authorized by an election. The election shall be held
and notice given in the same manner as provided in section
357E.8, and the same majority vote is necessary to authorize
indebtedness. Both Subject to section 39.2, subsection 4,
both propositions may be submitted to the voters at the same
election.
Sec. 128. Section 357E.11A, subsection 3, Code 2023, is
amended to read as follows:
3. Except for the issuance of refunding bonds, an
indebtedness shall not be incurred under this section until
authorized by an election. The election shall be held and
notice given in the same manner as provided in section 357E.8,
except that a proposition to authorize indebtedness is
approved if sixty percent of those voting on the proposition
vote in favor of the proposition. A Subject to section
39.2, subsection 4, a proposition for the authorization
of indebtedness may be submitted to the voters at the same
election as the election under section 357E.8.
Sec. 129. Section 357F.11, Code 2023, is amended to read as
follows:
357F.11 Bonds in anticipation of revenue.
A district may anticipate the collection of taxes authorized
in this chapter, and to carry out the purposes of this chapter
may issue bonds payable in not more than ten equal installments
with the rate of interest not exceeding that permitted by
chapter 74A. An indebtedness shall not be incurred under this
-62-chapter until authorized by an election. The election shall
be held and notice given in the same manner as provided in
section 357F.8, and a sixty percent vote shall be necessary
to authorize indebtedness. Both Subject to section 39.2,
subsection 4, both propositions may be submitted to the voters
at the same election.
Sec. 130. Section 357G.11, Code 2023, is amended to read as
follows:
357G.11 Bonds in anticipation of revenue.
A district may anticipate the collection of taxes authorized
in this chapter, and to carry out the purposes of this chapter
may issue bonds payable in not more than ten equal installments
with the rate of interest not exceeding that permitted by
chapter 74A. An indebtedness shall not be incurred under this
chapter until authorized by an election. The election shall
be held and notice given in the same manner as provided in
section 357G.8, and a sixty percent vote shall be necessary
to authorize indebtedness. Both Subject to section 39.2,
subsection 4, both propositions may be submitted to the voters
at the same election.
Sec. 131. Section 357I.12, Code 2023, is amended to read as
follows:
357I.12 Bonds in anticipation of revenue.
A district may anticipate the collection of taxes by the
levy authorized in this chapter, and to carry out the purposes
of this chapter may issue bonds payable in not more than ten
equal installments with the rate of interest not exceeding
that permitted by chapter 74A. An indebtedness shall not be
incurred under this chapter until authorized by an election.
The election shall be held and notice given in the same manner
as provided in section 357I.8, and the same sixty percent vote
shall be necessary to authorize indebtedness. Both Subject to
section 39.2, subsection 4, both propositions may be submitted
to the voters at the same election.
Sec. 132. Section 384.26, subsections 2 and 3, Code 2023,
-63-are amended to read as follows:
2. Before the council may institute proceedings for the
issuance of bonds for a general corporate purpose, it shall
call a special city election to vote upon the question of
issuing the bonds. At the election the proposition must be
submitted in the following form:
Shall the ............ (insert the name of the city) issue
its bonds in an amount not exceeding the amount of $.... for
the purpose of ..........?
3. a. All elections held pursuant to this section shall
be held on the date specified in section 39.2, subsection 4,
paragraph “d”.
b. Notice of the election must be given by publication
as required by section 49.53 in a newspaper of general
circulation in the city. At the election the ballot used for
the submission of the proposition must be in substantially the
form for submitting special questions at general elections.
Sec. 133. Section 394.2, subsection 1, Code 2023, is amended
to read as follows:
1. It shall not be necessary to submit to the voters the
proposition of issuing bonds for refunding purposes, but prior
to the issuance of bonds for other purposes the council shall
submit to the voters of the city at a general election or a
regular city election on the date specified in section 39.2,
subsection 4, paragraph “d”, the proposition of issuing the
bonds. Notice of the election on the proposition of issuing
bonds shall be published as required by section 49.53. The
notice shall also state whether or not an admission fee is to
be charged by the zoo or zoological gardens.
Sec. 134. Section 423F.4, subsection 2, paragraph b, Code
2023, is amended to read as follows:
b. For bonds subject to the requirements of paragraph
“a”, if at any time prior to the fifteenth day following the
hearing, the secretary of the board of directors receives a
petition containing the required number of signatures and
-64-asking that the question of the issuance of such bonds be
submitted to the voters of the school district, the board shall
either rescind its adoption of the resolution or direct the
county commissioner of elections to submit the question to the
registered voters of the school district at an election held on
a the date specified in section 39.2, subsection 4, paragraph
“c” “d”. The petition must be signed by eligible electors equal
in number to not less than one hundred or thirty percent of
the number of voters at the last preceding election of school
officials under section 277.1, whichever is greater. If the
board submits the question at an election and a majority of
those voting on the question favors issuance of the bonds, the
board shall be authorized to issue the bonds.
Sec. 135. IMPLEMENTATION OF ACT. Section 25B.2, subsection
3, shall not apply to this division of this Act.
Sec. 136. APPLICABILITY. This division of this Act applies
July 1, 2023, for elections on propositions relating to the
issuing of bonds or other indebtedness occurring on or after
that date.
DIVISION XIV
COUNTY AND CITY FINANCING
Sec. 137. Section 8.6, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION. 17. County and city bond issuance. To
annually prepare and file with the general assembly by December
1 a report specifying the updated population thresholds as
adjusted under section 331.442, subsection 5, and section
384.26, subsection 5, and detailing the use of the bond
issuance procedures under section 331.442, subsection 5, and
section 384.26, subsection 5, including the usage of such
procedures by counties and cities based on the population-based
limitations and the amount of bonds issued for each such usage.
Sec. 138. Section 331.301, subsection 10, paragraph e,
subparagraph (1), Code 2023, is amended to read as follows:
(1) (a) The board must follow substantially the
-65-authorization procedures of section 331.443 to authorize
a lease or lease-purchase contract for personal property
which is payable from the general fund. The board must
follow substantially the authorization procedures of section
331.443 to authorize a lease or lease-purchase contract for
real property which is payable from the general fund if the
principal amount of the lease-purchase contract does not exceed
the following limits:
(i) Four Five hundred twenty thousand dollars in a county
having a population of twenty-five thousand or less.
(ii) Five Six hundred fifty thousand dollars in a county
having a population of more than twenty-five thousand but not
more than fifty thousand.
(iii) Six Seven hundred eighty thousand dollars in a county
having a population of more than fifty thousand but not more
than one hundred thousand.
(iv) Eight hundred One million forty thousand dollars in a
county having a population of more than one hundred thousand
but not more than two hundred thousand.
(v) One million three hundred thousand dollars in a county
having a population of more than two hundred thousand.
(b) However, if the principal amount of a lease or
lease-purchase contract pursuant to this subparagraph (1) is
less than twenty-five thirty-two thousand five hundred dollars,
the board may authorize the lease or lease-purchase contract
without following the authorization procedures of section
331.443.
Sec. 139. Section 331.402, subsection 3, paragraph d,
subparagraph (1), subparagraph divisions (a), (b), (c), (d),
and (e), Code 2023, are amended to read as follows:
(a) Four Five hundred twenty thousand dollars in a county
having a population of twenty-five thousand or less.
(b) Five Six hundred fifty thousand dollars in a county
having a population of more than twenty-five thousand but not
more than fifty thousand.
-66- (c) Six Seven hundred eighty thousand dollars in a county
having a population of more than fifty thousand but not more
than one hundred thousand.
(d) Eight hundred One million forty thousand dollars in a
county having a population of more than one hundred thousand
but not more than two hundred thousand.
(e) One million three hundred thousand dollars in a county
having a population of more than two hundred thousand.
Sec. 140. Section 331.403, subsection 1, Code 2023, is
amended to read as follows:
1. Not later than December 1 of each year on forms and
pursuant to instructions prescribed by the department of
management, a county shall prepare an annual financial report
showing for each county fund the financial condition as of
June 30 and the results of operations for the year then ended.
Copies of the report shall be maintained as a public record at
the auditor’s office and shall be filed with the director of
the department of management and with the auditor of state by
December 1. A summary of the report, in a form prescribed by
the director, shall be published by each county not later than
December 1 of each year in one or more newspapers which meet
the requirements of section 618.14. Beginning with the annual
financial report filed by December 1, 2025, each report shall
include a list of bonds, notes, or other obligations issued
by the county during the most recently completed fiscal year,
and the applicable lists for other fiscal years beginning on
or after July 1, 2024, for which obligations remain unpaid,
payable from any source, including the amount of the issuance,
the project or purpose of the issuance, whether the issuance
was approved at election, eligible to be subject to a petition
for an election, or was exempt from approval at election as
the result of statutory exclusions based on population of
the county or amount of the issuance, and identification of
issuances from the fiscal year or prior fiscal years related
to the same project or purpose.
-67- Sec. 141. Section 331.441, subsection 2, paragraph b,
subparagraph (5), subparagraph divisions (a), (b), (c), (d),
and (e), Code 2023, are amended to read as follows:
(a) Six Seven hundred eighty thousand dollars in a county
having a population of twenty-five thousand or less.
(b) Seven Nine hundred fifty seventy-five thousand dollars
in a county having a population of more than twenty-five
thousand but not more than fifty thousand.
(c) Nine One million one hundred seventy thousand dollars in
a county having a population of more than fifty thousand but
not more than one hundred thousand.
(d) One million two five hundred sixty thousand dollars in
a county having a population of more than one hundred thousand
but not more than two hundred thousand.
(e) One million five nine hundred fifty thousand dollars in
a county having a population of more than two hundred thousand.
Sec. 142. Section 331.442, subsection 2, paragraph a, Code
2023, is amended to read as follows:
a. The board shall publish notice of the proposal to issue
the bonds, including a statement of the amount and purpose
of the bonds, and a statement of the estimated cost of the
project for which the bonds are to be issued, and an estimate
of the annual increase in property taxes as the result of
the bond issuance on a residential property with an actual
value of one hundred thousand dollars. The notice shall be
published as provided in section 331.305 with the minutes of
the meeting at which the board adopts a resolution to call a
county special election to vote upon the question of issuing
the bonds. The cost of the project, as published in the notice
pursuant to this paragraph, is an estimate and is not intended
to be binding on the board in later proceedings related to the
project.
Sec. 143. Section 331.442, subsection 5, paragraph a,
unnumbered paragraph 1, Code 2023, is amended to read as
follows:
-68- Notwithstanding subsection 2, a board, in lieu of calling
an election, may institute proceedings for the issuance of
bonds for a general county purpose by causing a notice of the
proposal to issue the bonds, including a statement of the
amount and purpose of the bonds, and the right to petition for
an election, to be published as provided in section 331.305 at
least ten days prior to the meeting at which it is proposed
to take action for the issuance of the bonds subject to the
following population-based limitations, adjusted and published
annually in January by the department of management by applying
the percentage change in the consumer price index for all
urban consumers for the most recent available twelve-month
period published in the federal register by the United States
department of labor, bureau of labor statistics:
Sec. 144. Section 331.442, subsection 5, paragraph a,
subparagraphs (1), (2), and (3), Code 2023, are amended to read
as follows:
(1) In counties having a population of twenty thousand or
less, in an amount of not more than one hundred thirty thousand
dollars.
(2) In counties having a population of over twenty thousand
and not over fifty thousand, in an amount of not more than two
hundred sixty thousand dollars.
(3) In counties having a population of over fifty thousand,
in an amount of not more than three hundred ninety thousand
dollars.
Sec. 145. Section 331.442, subsection 5, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. 0b. Each county’s population used to
determine the limitations of paragraph “a” shall be determined
by the greater of the county’s population during the most
recent federal decennial census or the most recent population
estimate produced by the United States census bureau.
Sec. 146. Section 331.443, subsection 2, Code 2023, is
amended to read as follows:
-69- 2. Before the board may institute proceedings for the
issuance of bonds for an essential county purpose, a notice
of the proposed action, including a statement of the amount
and purposes of the bonds, an estimate of the annual increase
in property taxes as the result of the bond issuance on a
residential property with an actual value of one hundred
thousand dollars, and the time and place of the meeting at
which the board proposes to take action for the issuance of the
bonds, shall be published as provided in section 331.305. At
the meeting, the board shall receive oral or written objections
from any resident or property owner of the county. After
all objections have been received and considered, the board,
at that meeting or a date to which it is adjourned, may take
additional action for the issuance of the bonds or abandon the
proposal to issue the bonds. Any resident or property owner
of the county may appeal the decision of the board to take
additional action to the district court of the county, within
fifteen days after the additional action is taken, but the
additional action of the board is final and conclusive unless
the court finds that the board exceeded its authority. The
provisions of this subsection with respect to notice, hearing,
and appeal, are in lieu of any other law.
Sec. 147. Section 384.22, subsection 1, Code 2023, is
amended to read as follows:
1. Not later than December 1 of each year, a city shall
publish an annual financial report as provided in section
362.3 containing a summary for the preceding fiscal year of
all collections and receipts, all accounts due the city,
and all expenditures, the current public debt of the city,
and the legal debt limit of the city for the current fiscal
year. The annual financial report shall be prepared on forms
and pursuant to instructions prescribed by the auditor of
state. Beginning with the annual financial report published by
December 1, 2025, each report shall include a list of bonds,
notes, or other obligations issued by the city during the most
-70-recently completed fiscal year, and the applicable lists for
other fiscal years beginning on or after July 1, 2024, for
which obligations remain unpaid, payable from any source,
including the amount of the issuance, the project or purpose of
the issuance, whether the issuance was approved at election,
eligible to be subject to a petition for an election, or was
exempt from approval at election as the result of statutory
exclusions based on population of the city or amount of the
issuance, and identification of issuances from the fiscal year
or prior fiscal years related to the same project or purpose.
Sec. 148. Section 384.24A, subsection 4, paragraph a,
subparagraphs (1), (2), and (3), Code 2023, are amended to read
as follows:
(1) Four Five hundred twenty thousand dollars in a city
having a population of five thousand or less.
(2) Seven Nine hundred ten thousand dollars in a city having
a population of more than five thousand but not more than
seventy-five thousand.
(3) One million three hundred thousand dollars in a city
having a population of more than seventy-five thousand.
Sec. 149. Section 384.25, subsection 2, Code 2023, is
amended to read as follows:
2. Before the council may institute proceedings for the
issuance of bonds for an essential corporate purpose, a notice
of the proposed action, including a statement of the amount
and purposes of the bonds, and an estimate of the annual
increase in property taxes as the result of the bond issuance
on a residential property with an actual value of one hundred
thousand dollars, and the time and place of the meeting at
which the council proposes to take action for the issuance of
the bonds, must be published as provided in section 362.3.
At the meeting, the council shall receive oral or written
objections from any resident or property owner of the city.
After all objections have been received and considered, the
council may, at that meeting or any adjournment thereof, take
-71-additional action for the issuance of the bonds or abandon the
proposal to issue the bonds. Any resident or property owner
of the city may appeal the decision of the council to take
additional action to the district court of the county in which
any part of the city is located, within fifteen days after the
additional action is taken, but the additional action of the
council is final and conclusive unless the court finds that
the council exceeded its authority. The provisions of this
subsection with respect to notice, hearing, and appeal, are in
lieu of the provisions contained in chapter 73A, or any other
law.
Sec. 150. Section 384.26, subsection 2, Code 2023, is
amended to read as follows:
2. a. The board shall publish notice of the proposal
to issue the bonds, including a statement of the amount and
purpose of the bonds, a statement of the estimated cost of the
project for which the bonds are to be issued, and an estimate
of the annual increase in property taxes as the result of
the bond issuance on a residential property with an actual
value of one hundred thousand dollars. The notice shall be
published as provided in section 362.3 with the minutes of
the meeting at which the council adopts a resolution to call
a special election to vote upon the question of issuing the
bonds. The cost of the project, as published in the notice
pursuant to this paragraph, is an estimate and is not intended
to be binding on the board in later proceedings related to the
project.
b. Before the council may institute proceedings for the
issuance of bonds for a general corporate purpose, it shall
call a special city election to vote upon the question of
issuing the bonds. At the election the proposition must be
submitted in the following form:
Shall the ............ (insert the name of the city) issue
its bonds in an amount not exceeding the amount of $.... for
the purpose of ..........?
-72- Sec. 151. Section 384.26, subsection 5, paragraph a,
unnumbered paragraph 1, Code 2023, is amended to read as
follows:
Notwithstanding the provisions of subsection 2, a council
may, in lieu of calling an election, institute proceedings
for the issuance of bonds for a general corporate purpose by
causing a notice of the proposal to issue the bonds, including
a statement of the amount and purpose of the bonds, together
with the maximum rate of interest which the bonds are to bear,
and the right to petition for an election, to be published at
least once in a newspaper of general circulation within the
city at least ten days prior to the meeting at which it is
proposed to take action for the issuance of the bonds subject
to the following population-based limitations, adjusted and
published annually in January by the department of management
by applying the percentage change in the consumer price
index for all urban consumers for the most recent available
twelve-month period published in the federal register by the
United States department of labor, bureau of labor statistics:
Sec. 152. Section 384.26, subsection 5, paragraph a,
subparagraphs (1), (2), and (3), Code 2023, are amended to read
as follows:
(1) In cities having a population of five thousand or less,
in an amount of not more than four five hundred twenty thousand
dollars.
(2) In cities having a population of more than five thousand
and not more than seventy-five thousand, in an amount of not
more than seven nine hundred ten thousand dollars.
(3) In cities having a population in excess of seventy-five
thousand, in an amount of not more than one million three
hundred thousand dollars.
Sec. 153. Section 384.26, subsection 5, Code 2023, is
amended by adding the following new paragraph:
NEW PARAGRAPH. 0b. Each city’s population used to determine
the limitations of paragraph “a” shall be determined by the
-73-greater of the city’s population during the most recent
federal decennial census or the most recent population estimate
produced by the United States census bureau.
Sec. 154. EFFECTIVE DATE. This division of this Act takes
effect July 1, 2024.
-74-______________________________
PAT GRASSLEYSpeaker of the House______________________________
AMY SINCLAIRPresident of the Senate I hereby certify that this bill originated in the House and is known as House File 718, Ninetieth General Assembly.______________________________
MEGHAN NELSONChief Clerk of the HouseApproved _______________, 2023______________________________
KIM REYNOLDSGovernormd/jh/md