Iowa Senate Bill SSB1125 Introduced / Bill

                    Senate Study Bill 1125 - Introduced   SENATE FILE _____   BY (PROPOSED COMMITTEE ON   WAYS AND MEANS BILL BY   CHAIRPERSON DAWSON)   A BILL FOR   An Act relating to state and local revenue and finances by 1   modifying sales and use taxes, the charitable conservation 2   contribution tax credit available against individual and 3   corporate income taxes, the water service tax, property 4   taxes, transit funding, and local option taxes, crediting 5   moneys to the natural resources and outdoor recreation trust 6   fund, making appropriations, and including effective date, 7   retroactive applicability, and applicability provisions. 8   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 9   TLSB 1461XC (12) 90   md/jh  

  S.F. _____   DIVISION I 1   SALES AND USE TAX RATES AND DISTRIBUTION 2   Section 1. Section 423.2, subsection 1, unnumbered 3   paragraph 1, Code 2023, is amended to read as follows: 4   There is imposed a tax of six percent at the rate specified 5   in subsection 12   upon the sales price of all sales of tangible 6   personal property, sold at retail in the state to consumers or 7   users except as otherwise provided in this subchapter . 8   Sec. 2. Section 423.2, subsections 2 and 3, Code 2023, are 9   amended to read as follows: 10   2. A tax of six percent   at the rate specified in subsection 11   12 is imposed upon the sales price of the sale or furnishing 12   of gas, electricity, water, heat, pay television service, and 13   communication service, including the sales price from such 14   sales by any municipal corporation or joint water utility 15   furnishing gas, electricity, water, heat, pay television 16   service, and communication service to the public in its 17   proprietary capacity, except as otherwise provided in this 18   subchapter , when sold at retail in the state to consumers or 19   users. 20   3. A tax of six percent   at the rate specified in subsection 21   12 is imposed upon the sales price of all sales of tickets 22   or admissions to places of amusement, fairs, and athletic 23   events except those of elementary and secondary educational 24   institutions. A tax of six percent   at the rate specified in 25   subsection 12 is imposed on the sales price of an entry fee or 26   like charge imposed solely for the privilege of participating 27   in an activity at a place of amusement, fair, or athletic event 28   unless the sales price of tickets or admissions charges for 29   observing the same activity are taxable under this subchapter . 30   A tax of six percent   at the rate specified in subsection 12 31   is imposed upon that part of private club membership fees or 32   charges paid for the privilege of participating in any athletic 33   sports provided club members. 34   Sec. 3. Section 423.2, subsection 4, paragraph a, Code 2023, 35   -1-   LSB 1461XC (12) 90   md/jh   1/ 71                

  S.F. _____   is amended to read as follows: 1   a. A tax of six percent   at the rate specified in subsection 2   12 is imposed upon the sales price derived from the operation 3   of all forms of amusement devices and games of skill, games of 4   chance, raffles, and bingo games as defined in chapter 99B , and 5   card game tournaments conducted under section 99B.27 , that are 6   operated or conducted within the state, the tax to be collected 7   from the operator in the same manner as for the collection of 8   taxes upon the sales price of tickets or admission as provided 9   in this section . Nothing in this subsection shall legalize any 10   games of skill or chance or slot-operated devices which are now 11   prohibited by law. 12   Sec. 4. Section 423.2, subsection 5, Code 2023, is amended 13   to read as follows: 14   5. There is imposed a tax of six percent   at the rate 15   specified in subsection 12 upon the sales price from the 16   furnishing of services as defined in section 423.1 . 17   Sec. 5. Section 423.2, subsection 7, paragraph a, 18   unnumbered paragraph 1, Code 2023, is amended to read as 19   follows: 20   A tax of six percent   at the rate specified in subsection 12 21   is imposed upon the sales price from the sales, furnishing, or 22   service of solid waste collection and disposal service. 23   Sec. 6. Section 423.2, subsection 8, paragraph a, Code 2023, 24   is amended to read as follows: 25   a. A tax of six percent   at the rate specified in subsection 26   12 is imposed on the sales price from sales of bundled 27   transactions. For the purposes of this subsection , a bundled 28   transaction is the retail sale of two or more distinct and 29   identifiable products, except real property and services to 30   real property, which are sold for one nonitemized price. A 31   bundled transaction does not include the sale of any products 32   in which the sales price varies, or is negotiable, based on 33   the selection by the purchaser of the products included in the 34   transaction.   35   -2-   LSB 1461XC (12) 90   md/jh   2/ 71             

  S.F. _____   Sec. 7. Section 423.2, subsection 9, Code 2023, is amended 1   to read as follows: 2   9. A tax of six percent   at the rate specified in 3   subsection 12 is imposed upon the sales price from any mobile 4   telecommunications service, including all paging services, 5   that this state is allowed to tax pursuant to the provisions 6   of the federal Mobile Telecommunications Sourcing Act, Pub. 7   L. No. 106-252, 4 U.S.C. 116 et seq. For purposes of this 8   subsection , taxes on mobile telecommunications service, as 9   defined under the federal Mobile Telecommunications Sourcing 10   Act that are deemed to be provided by the customers home 11   service provider, shall be paid to the taxing jurisdiction 12   whose territorial limits encompass the customers place of 13   primary use, regardless of where the mobile telecommunications 14   service originates, terminates, or passes through and 15   shall in all other respects be taxed in conformity with 16   the federal Mobile Telecommunications Sourcing Act. All 17   other provisions of the federal Mobile Telecommunications 18   Sourcing Act are adopted by the state of Iowa and incorporated 19   into this subsection by reference. With respect to mobile 20   telecommunications service under the federal Mobile 21   Telecommunications Sourcing Act, the director shall, if 22   requested, enter into agreements consistent with the provisions 23   of the federal Act. 24   Sec. 8. Section 423.2, subsection 10, paragraph a, Code 25   2023, is amended to read as follows: 26   a. A tax of six percent   at the rate specified in subsection 27   12 is imposed on the sales price of specified digital products 28   sold at retail in the state. The tax applies whether the 29   purchaser obtains permanent use or less than permanent use of 30   the specified digital product, whether the sale is conditioned 31   or not conditioned upon continued payment from the purchaser, 32   and whether the sale is on a subscription basis or is not on a 33   subscription basis. 34   Sec. 9. Section 423.2, subsection 12, Code 2023, is amended 35   -3-   LSB 1461XC (12) 90   md/jh   3/ 71        

  S.F. _____   by striking the subsection and inserting in lieu thereof the 1   following: 2   12. a. For the period beginning January 1, 2025, through 3   December 31, 2050, the sales tax rate is seven percent. 4   b. Beginning January 1, 2051, the sales tax rate is six 5   percent. 6   Sec. 10. Section 423.2A, subsection 2, paragraphs a, b, and 7   c, Code 2023, are amended to read as follows: 8   a. (1)   Transfer For the period beginning January 1, 9   2025, through December 31, 2027, transfer twenty-eight 10   one-hundred-fortieths of   the revenues collected under deposited 11   into the general fund of the state under subsection 1 to the 12   appropriate county accounts under chapter 423B for the counties 13   from which the tax was collected   . 14   (2) For the period beginning January 1, 2028, through 15   December 31, 2028, transfer twenty-seven one-hundred-fortieths 16   of the revenues deposited into the general fund of the state 17   under subsection 1 to the appropriate county accounts under   18   chapter 423B for the counties from which the tax was collected.   19   (3) For the period beginning January 1, 2029, through 20   December 31, 2029, transfer twenty-six one-hundred-fortieths of   21   the revenues deposited into the general fund of the state under 22   subsection 1 to the appropriate county accounts under chapter   23   423B for the counties from which the tax was collected. 24   (4) For the period beginning January 1, 2030, through 25   December 31, 2050, transfer twenty-five one-hundred-fortieths 26   of the revenues deposited into the general fund of the state 27   under subsection 1 to the appropriate county accounts under 28   chapter 423B for the counties from which the tax was collected. 29   (5)   Beginning January 1, 2051, transfer five twenty-fourths 30   of the revenues deposited into the general fund of the state 31   under subsection 1 to the appropriate county accounts under   32   chapter 423B for the counties from which the tax was collected. 33   b. Transfer from the remaining revenues the amounts required 34   under Article VII, section 10, of the Constitution of the State 35   -4-   LSB 1461XC (12) 90   md/jh   4/ 71                                        

  S.F. _____   of Iowa to the natural resources and outdoor recreation trust 1   fund created in section 461.31 , if applicable   . 2   c. Transfer one-sixth of from the remaining revenues an 3   amount equal to one-seventh of the revenues deposited into the 4   general fund of the state under subsection 1   to the secure an 5   advanced vision for education fund created in section 423F.2 . 6   This paragraph c is repealed January 1, 2051. 7   Sec. 11. Section 423.5, subsection 1, unnumbered paragraph 8   1, Code 2023, is amended to read as follows: 9   Except as provided in paragraph b , an excise tax at the 10   rate of six percent   specified in subsection 4 of the purchase 11   price or installed purchase price is imposed on the following: 12   Sec. 12. Section 423.5, subsection 4, Code 2023, is amended 13   by striking the subsection and inserting in lieu thereof the 14   following: 15   4. a. For the period beginning January 1, 2025, through 16   December 31, 2050, the use tax rate is seven percent. 17   b. Beginning January 1, 2051, the use tax rate is six 18   percent. 19   Sec. 13. Section 423.43, subsection 1, paragraph b, Code 20   2023, is amended by striking the paragraph and inserting in 21   lieu thereof the following: 22   b. Subsequent to the deposit into the general fund of 23   the state the department shall do the following in the order 24   prescribed: 25   (1) (a) For the period beginning January 1, 2025, through 26   December 31, 2043, transfer one-seventh of such revenues to the   27   local use tax supplement fund, under section 423B.1A. 28   (b) For the period beginning January 1, 2044, through 29   December 31, 2050, transfer one-seventh of such revenues to the 30   appropriate county accounts under chapter 423B for the counties 31   from which the tax was paid. 32   (c) Beginning January 1, 2051, transfer one-sixth of such 33   revenues to the appropriate county accounts under chapter 423B 34   for the counties from which the tax was paid. 35   -5-   LSB 1461XC (12) 90   md/jh   5/ 71          

  S.F. _____   (2) Transfer one-sixth of such remaining revenues to the 1   secure an advanced vision for education fund created in section 2   423F.2. This subparagraph is repealed January 1, 2051. 3   Sec. 14. EFFECTIVE DATE. This division of this Act takes 4   effect January 1, 2025. 5   DIVISION II 6   WATER SERVICE TAX 7   Sec. 15. Section 423G.3, Code 2023, is amended to read as 8   follows: 9   423G.3 Water service tax. 10   An excise tax at the   a rate of six percent equal to the rate 11   being imposed under section 423.2, subsection 12, is imposed on 12   the sales price from the sale or furnishing by a water utility 13   of a water service in the state to consumers or users. 14   Sec. 16. Section 423G.6, subsection 2, Code 2023, is amended 15   by striking the subsection. 16   Sec. 17. REPEAL. Chapter 423G.7, Code 2023, is repealed. 17   Sec. 18. EFFECTIVE DATE. This division of this Act takes 18   effect January 1, 2025. 19   DIVISION III 20   LOCAL OPTION TAXES 21   Sec. 19. Section 15J.7, subsection 2, Code 2023, is amended 22   to read as follows: 23   2. In addition to the moneys received pursuant to section 24   15J.6 , a municipality may deposit in the reinvestment project 25   fund any other moneys lawfully at the municipalitys disposal, 26   including but not limited to local sales and services tax   27   receipts collected revenues received under chapter 423B if such 28   use is a purpose authorized for the municipality under chapter 29   423B .   30   Sec. 20. Section 28A.17, Code 2023, is amended to read as   31   follows:   32   28A.17 Local sales and services tax. 33   1. If an authority is established as provided in section 34   28A.6 and after approval of a referendum by a simple majority 35   -6-   LSB 1461XC (12) 90   md/jh   6/ 71          

  S.F. _____   of votes cast in each metropolitan area in favor of the sales 1   and services tax, the governing board of a county in this state 2   within a metropolitan area which is part of the authority shall 3   impose, at the request of the authority, a local sales and 4   services tax at the rate of one-fourth of one percent on the 5   sales price taxed by this state under section 423.2 , within 6   the metropolitan area located in this state. The referendum 7   shall be called by resolution of the board and shall be held 8   as provided in section 28A.6 to the extent applicable. The 9   ballot proposition shall contain a statement as to the specific 10   purpose or purposes for which the revenues shall be expended 11   and the date of expiration of the tax. The local sales and 12   services tax shall be imposed on the same basis, with the same 13   exceptions, and following the same administrative procedures as 14   provided for a county under sections 423B.5 and 423B.6 , Code   15   2023 . The amount of the sale, for the purposes of determining 16   the amount of the local sales and services tax under this 17   section , does not include the amount of any local sales and 18   services tax imposed under sections 423B.5 and 423B.6 , Code   19   2023 . 20   2. The treasurer of state shall credit the local sales 21   and services tax receipts and interest and penalties to the 22   authoritys account. Moneys in this account shall be remitted 23   quarterly to the authority. The proceeds of the tax imposed 24   under this section shall be used only for the construction, 25   reconstruction, or repair of metropolitan facilities as 26   specified in the referendum. The local sales and services tax 27   imposed under this section may be suspended for not less than 28   a fiscal quarter or more than one year by action of the board. 29   The suspension may be renewed or continued by the board, but 30   the board shall act on the suspension at least annually. 31   The local sales and services tax may also be repealed by a 32   petition and favorable referendum following the procedures and 33   requirements of sections 28A.5 and 28A.6 as applicable. The 34   board shall give the department of revenue at least forty days 35   -7-   LSB 1461XC (12) 90   md/jh   7/ 71      

  S.F. _____   notice of the repeal, suspension, or reinstatement of the tax 1   and the effective dates for imposition, suspension, or repeal 2   of the tax shall be as provided in section 423B.6 , Code 2023   . 3   3. A local sales and services tax authorized under this 4   section shall not be imposed or collected on or after January   5   1, 2025.   6   Sec. 21. Section 76.4, Code 2023, is amended to read as 7   follows: 8   76.4 Permissive application of funds. 9   Whenever the governing authority of such political 10   subdivision shall have on hand funds derived from any other 11   source than taxation which may be appropriated to the payment 12   either of interest or principal, or both principal and interest 13   of such bonds, such funds may be so appropriated and used 14   and the levy for the payment of the bonds correspondingly 15   reduced. This section shall not restrict the authority of a 16   political subdivision to apply sales and services   tax receipts 17   collected   received pursuant to chapter 423B for such purpose. 18   Notwithstanding section 423F.3 , a school district may apply tax 19   receipts received pursuant to chapter 423F for the purposes of 20   this section . 21   Sec. 22. Section 99B.1, subsection 23, Code 2023, is amended 22   to read as follows: 23   23. Net receipts means gross receipts less amounts awarded 24   as prizes and less state and local   sales tax paid upon the 25   gross receipts. 26   Sec. 23. Section 99B.14, subsection 1, Code 2023, is amended   27   to read as follows: 28   1. A licensed qualified organization shall certify 29   that the receipts from all charitable gambling conducted 30   by the organization under this chapter , less reasonable 31   expenses, charges, fees, taxes, and deductions, either will 32   be distributed as prizes to participants or will be dedicated 33   and distributed for educational, civic, public, charitable, 34   patriotic, or religious uses. Reasonable expenses, charges, 35   -8-   LSB 1461XC (12) 90   md/jh   8/ 71            

  S.F. _____   fees, taxes other than the state and local sales tax, and 1   deductions allowed by the department shall not exceed forty 2   percent of net receipts. 3   Sec. 24. Section 99G.4, subsection 2, Code 2023, is amended 4   to read as follows: 5   2. The income and property of the authority shall be exempt 6   from all state and local taxes, and the sale of lottery tickets 7   and shares issued and sold by the authority and its retail 8   licensees shall be exempt from all state and local   sales taxes. 9   Sec. 25. Section 99G.30A, subsection 2, paragraph a, Code 10   2023, is amended to read as follows: 11   a. The director of revenue shall administer the monitor 12   vending machine excise tax as nearly as possible in conjunction 13   with the administration of state sales tax laws. The director   14   shall provide appropriate forms or provide appropriate entries 15   on the regular state tax forms for reporting local sales and 16   services tax liability. 17   Sec. 26. Section 279.63, subsection 2, paragraph a, Code 18   2023, is amended to read as follows: 19   a. All property tax levies ,   and income surtaxes , and local 20   option sales taxes   in place in the school district, listed by 21   type of levy, rate, amount, duration, and notification of the 22   maximum rate and amount limitations permitted by statute. 23   Sec. 27. Section 321.40, subsection 5, Code 2023, is amended 24   by striking the subsection. 25   Sec. 28. Section 321.130, Code 2023, is amended to read as 26   follows:   27   321.130 Fees in lieu of taxes. 28   The registration fees imposed by this chapter upon private 29   passenger motor vehicles or semitrailers are in lieu of all 30   state and local taxes , except local vehicle taxes,   to which 31   motor vehicles or semitrailers are subject. 32   Sec. 29. Section 418.13, subsection 2, Code 2023, is amended   33   to read as follows: 34   2. In addition to the moneys received pursuant to section 35   -9-   LSB 1461XC (12) 90   md/jh   9/ 71             

  S.F. _____   418.10 or 418.12 , a governmental entity may deposit in the 1   flood project fund any other moneys lawfully received by the 2   governmental entity, including but not limited to local sales   3   and services tax receipts collected amounts received under 4   chapter 423B . 5   Sec. 30. Section 421.26, Code 2023, is amended to read as 6   follows: 7   421.26 Personal liability for tax due. 8   If a licensee or other person under section 452A.65 , a 9   retailer or purchaser under chapter 423A , 423B   , 423C , 423D , or 10   423E , or section 423.14 , 423.14A , 423.29 , 423.31 , or 423.33 , 11   or a user under section 423.34 , or a permit holder or licensee 12   under section 453A.13 , 453A.16 , or 453A.44 fails to pay a tax 13   under those sections when due, an officer of a corporation 14   or association, notwithstanding section 489.304 , a member or 15   manager of a limited liability company, or a partner of a 16   partnership, having control or supervision of or the authority 17   for remitting the tax payments and having a substantial legal 18   or equitable interest in the ownership of the corporation, 19   association, limited liability company, or partnership, who has 20   intentionally failed to pay the tax is personally liable for 21   the payment of the tax, interest, and penalty due and unpaid. 22   However, this section shall not apply to taxes on accounts 23   receivable. The dissolution of a corporation, association, 24   limited liability company, or partnership shall not discharge a 25   persons liability for failure to remit the tax due. 26   Sec. 31. Section 421.28, Code 2023, is amended to read as   27   follows: 28   421.28 Exceptions to successor liability. 29   The immediate successor to a licensees or retailers 30   business or stock of goods under chapter 423A or   423B , or 31   section 423.33 or 452A.65 , is not personally liable for 32   the amount of delinquent tax, interest, or penalty due and 33   unpaid if the immediate successor shows that the purchase of 34   the business or stock of goods was made in good faith that 35   -10-   LSB 1461XC (12) 90   md/jh   10/ 71          

  S.F. _____   no delinquent tax, interest, or penalty was due and unpaid. 1   For purposes of this section the immediate successor shows 2   good faith by evidence that the department had provided 3   the immediate successor with a certified statement that 4   no delinquent tax, interest, or penalty is unpaid, or that 5   the immediate successor had taken in good faith a certified 6   statement from the licensee, retailer, or seller that no 7   delinquent tax, interest, or penalty is unpaid. When requested 8   to do so by a person with whom the licensee or retailer is 9   negotiating the sale of the business or stock of goods, the 10   director of revenue shall, upon being satisfied that such 11   a situation exists, inform that person as to the amount of 12   unpaid delinquent tax, interest, or penalty due by the licensee 13   or the retailer. The giving of the information under this 14   circumstance is not a violation of section 422.20 , 422.72 , or 15   452A.63 . 16   Sec. 32. Section 421.60, subsection 2, paragraph m, 17   subparagraphs (1) and (2), Code 2023, are amended to read as 18   follows: 19   (1) The director may abate unpaid state sales and use 20   taxes and local sales and services taxes   owed by a retailer 21   in the event that the retailer failed to collect tax from the 22   purchaser as a result of erroneous written advice issued by 23   the department that was specially directed to the retailer 24   by the department and the retailer is unable to collect the 25   tax, interest, or penalties from the purchaser. Before the 26   tax, interest, and penalties shall be abated on the basis of 27   erroneous written advice, the retailer must present a copy of 28   the retailers request for written advice to the department and 29   a copy of the departments reply. The department shall not 30   maintain a position against the retailer that is inconsistent 31   with the erroneous written advice, except on the basis of 32   subsequent written advice sent by the department to that 33   retailer, or a change in state or federal law, a reported 34   court case to the contrary, a contrary rule adopted by the 35   -11-   LSB 1461XC (12) 90   md/jh   11/ 71   

  S.F. _____   department, a change in material facts or circumstances 1   relating to the retailer, or the retailers misrepresentation 2   or incomplete or inadequate representation of material facts 3   and circumstances in requesting the written advice. 4   (2) (a) The director shall abate the unpaid state sales 5   and use taxes and any local sales and services taxes   owed by a 6   retailer where the retailer failed to collect the tax from the 7   purchaser on the charges paid for access to on-line computer 8   services as a result of erroneous written advice issued by the 9   department regarding the taxability of charges paid for access 10   to on-line computer services. To qualify for the abatement 11   under this subparagraph, the erroneous written advice shall 12   have been issued by the department prior to July 1, 1999, and 13   shall have been specially directed to the retailer by the 14   department. 15   (b) If an abatement of unpaid state sales and use taxes and   16   any local sales and services taxes is granted to the retailer 17   by the director pursuant to this subparagraph, the department 18   is precluded from collecting from the purchaser any unpaid 19   state sales and use taxes and any local sales and services   20   taxes   which were abated. 21   Sec. 33. Section 422.72, subsection 6, paragraph a, Code 22   2023, is amended to read as follows: 23   a. The department may enter into a written informational 24   exchange agreement for tax administration purposes with a city 25   or county which is entitled to receive funds due to a local 26   hotel and motel tax or a local sales and services tax   . The   27   written informational exchange agreement shall designate no 28   more than two paid city or county employees that have access to 29   actual return information relating to that citys or countys 30   receipts from a local hotel and motel tax or a local sales and   31   services tax   . 32   Sec. 34. Section 423.4, subsection 2, paragraph d, Code 33   2023, is amended by striking the paragraph. 34   Sec. 35. Section 423.4, subsection 5, paragraph f, Code 35   -12-   LSB 1461XC (12) 90   md/jh   12/ 71          

  S.F. _____   2023, is amended to read as follows: 1   f. Notwithstanding the state sales tax imposed in section 2   423.2 , a rebate issued pursuant to this subsection shall not 3   exceed an amount equal to five percent of the sales price 4   of the tangible personal property or services furnished to 5   purchasers at the automobile racetrack facility. Any local   6   option taxes paid and collected shall not be subject to rebate 7   under this subsection . 8   Sec. 36. Section 423.4, subsection 7, paragraph f, Code 9   2023, is amended to read as follows: 10   f. The refund in   this subsection applies only to state 11   sales and use tax paid and does not apply to local option 12   sales and services taxes imposed pursuant to chapter 423B . 13   Notwithstanding the state sales tax imposed in section 423.2 , 14   a refund issued pursuant to this section shall not exceed 15   an amount equal to five percent of the sales price of the 16   fuel used to create heat, power, and steam for processing 17   or generating electrical current or from the sale price 18   of electricity consumed by computers, machinery, or other 19   equipment for operation of the data center business facility. 20   Sec. 37. Section 423.4, subsection 8, paragraph g, Code 21   2023, is amended to read as follows: 22   g. The refund in   this subsection applies only to state 23   sales and use tax paid and does not apply to local option 24   sales and services taxes imposed pursuant to chapter 423B . 25   Notwithstanding the state sales tax imposed in section 423.2 , 26   a refund issued pursuant to this section shall not exceed an 27   amount equal to five percent of the sales price of the items 28   listed in paragraph a , subparagraphs (1), (2), and (3). 29   Sec. 38. Section 423.14A, subsection 2, Code 2023, is   30   amended to read as follows: 31   2. In addition to and not in lieu of any application of 32   this chapter to sellers who are retailers and sellers who are 33   retailers maintaining a place of business in this state, any 34   person described in subsection 3 , or the persons agents, 35   -13-   LSB 1461XC (12) 90   md/jh   13/ 71                     

  S.F. _____   shall be considered a retailer in this state and a retailer 1   maintaining a place of business in this state for purposes of 2   this chapter on or after January 1, 2019, and shall be subject 3   to all requirements of this chapter imposed on retailers and 4   retailers maintaining a place of business in this state, 5   including but not limited to the requirement to collect and 6   remit sales and use taxes pursuant to sections 423.14 and 7   423.29 , and local option taxes under   chapter 423B . 8   Sec. 39. Section 423.33, subsection 1, paragraph c, Code 9   2023, is amended to read as follows: 10   c. If the retailer fails to collect sales tax at the time 11   of the transaction, the retailer shall thereafter remit the 12   applicable sales tax, or the purchaser thereafter shall remit 13   the applicable use tax. If the purchaser remits all applicable   14   use tax, the retailer remains liable for any local sales and 15   services tax under chapter 423B that the retailer failed to 16   collect. 17   Sec. 40. Section 423.34A, unnumbered paragraph 1, Code 18   2023, is amended to read as follows: 19   A purchaser is relieved of liability for payment of state 20   sales or use tax, for payment of any local option sales tax,   21   for payment of interest, or for payment of any penalty for 22   nonpayment of tax which nonpayment is not fraudulent, willful, 23   or intentional, under the following circumstances: 24   Sec. 41. Section 423.36, subsection 9, paragraph a, Code 25   2023, is amended to read as follows: 26   a. Except as provided in paragraph b , purchasers, users, 27   and consumers of tangible personal property, specified digital 28   products, or enumerated services taxed pursuant to subchapter 29   II or III of this chapter or   chapter 423B may be authorized, 30   pursuant to rules adopted by the director, to remit tax owed 31   directly to the department instead of the tax being collected 32   and paid by the seller. To qualify for a direct pay tax permit, 33   the purchaser, user, or consumer must accrue a tax liability 34   of more than four thousand dollars in tax under subchapters 35   -14-   LSB 1461XC (12) 90   md/jh   14/ 71             

  S.F. _____   II and III in a semimonthly period and make deposits and file 1   returns pursuant to section 423.31 . This authority shall not 2   be granted or exercised except upon application to the director 3   and then only after issuance by the director of a direct pay 4   tax permit. 5   Sec. 42. Section 423B.1, Code 2023, is amended by striking 6   the section and inserting in lieu thereof the following: 7   423B.1 Use of revenues deposited in the local sales and use 8   tax fund  revenue purpose statement. 9   1. a. Revenues credited to and deposited in each countys 10   account within the local sales and use tax fund shall be 11   expended by each recipient county and city as required by the 12   revenue purpose statement, subject to the requirements of 13   section 423B.7, subsection 7, and approved under this section 14   for the city or for the county for the unincorporated areas of 15   the county, or as required by subsection 3. 16   b. A revenue purpose statement for the use of local option 17   sales and services tax revenue under this chapter approved at 18   election prior to January 1, 2025, and in effect on or set 19   to take effect on or after January 1, 2025, and the use of 20   revenues received under this chapter for purposes authorized 21   under section 423B.10 for ordinances in effect and approved 22   before January 1, 2025, shall continue in effect for revenues 23   received under this chapter until the expiration of the revenue 24   purpose statement or ordinance, if applicable, or until the 25   county board of supervisors or city council, as applicable, 26   adopts a new revenue purpose statement under subsection 2 or 27   repeals or amends the ordinance for the use of revenues under 28   section 423B.10. 29   2. The board of supervisors of each county and the city 30   council of each city may adopt by resolution a revenue purpose 31   statement for the expenditure of funds received under this 32   chapter. 33   3. Each city and county without a valid revenue purpose 34   statement shall expend the revenues received for the following 35   -15-   LSB 1461XC (12) 90   md/jh   15/ 71  

  S.F. _____   purposes in the order prescribed in this subsection, except 1   that the payment of bonds for which the revenues have been 2   pledged shall be paid first: 3   a. Reduction of the countys basic levies under section 4   331.423 or reduction of the city general fund levy under 5   section 384.1, as applicable. 6   b. Reduction of any debt service levy of the county or city, 7   as applicable. 8   c. Reduction of the citys additional taxes levied under 9   section 384.12 or the countys supplemental levies under 10   section 331.424, as applicable. 11   d. Reduction of any other property tax levy of the county 12   or city, as applicable. 13   Sec. 43. NEW SECTION   . 423B.1A Local use tax supplement 14   fund.   15   1. A local use tax supplement fund is created in the state 16   treasury under the control of the department of revenue. The 17   fund shall consist of all moneys transferred under section 18   423.43, subsection 1, paragraph b , subparagraph (1), 19   subparagraph division (a), and moneys appropriated to the fund. 20   2. Moneys in the local use tax supplement fund are annually 21   appropriated to the department of revenue and shall be used for 22   supplement payments to cities and counties under this section. 23   3. For each year during the period beginning January 1, 24   2025, through December 31, 2043, each city or county for the 25   unincorporated portion of the county, shall receive a local 26   use tax supplement payment equal to the difference, but not 27   less than zero between the amount of revenue received by the 28   city or county under section 423B.7, Code 2023, for the period 29   beginning January 1, 2024, and ending December 31, 2024, minus 30   the amount that would have been received by that city or county 31   for that period if all cities and the county were eligible for 32   distributions of such revenues under section 423B.7, Code 2023. 33   If moneys in the fund are insufficient to pay all supplement 34   amounts for the year, the director of revenue shall prorate the 35   -16-   LSB 1461XC (12) 90   md/jh   16/ 71   

  S.F. _____   payment of the supplement payments and shall notify the cities 1   and counties of the pro rata percentage. 2   4. The supplement payment calculated under subsection 3 3   shall be paid to each city or county for the unincorporated 4   area of the county and shall be combined with and be used in the 5   same manner and be subject to the same requirements as moneys 6   received by the city or county under section 423B.7 for that 7   year. 8   5. Notwithstanding section 12C.7, subsection 2, interest or 9   earnings on moneys deposited in the local use tax supplement 10   fund shall be credited to the local use tax supplement fund. 11   Notwithstanding section 8.33, moneys credited to the local use 12   tax supplement fund shall not revert at the close of a fiscal 13   year. 14   6. This section is repealed January 1, 2044. Moneys in the 15   fund upon the repeal of this section shall be transferred to 16   the appropriate county accounts under section 423B.7 for the 17   counties from which the tax was paid. 18   Sec. 44. Section 423B.7, subsection 1, Code 2023, is amended 19   to read as follows: 20   1. a. Except as provided in paragraphs   paragraph b and 21   c , the director shall credit the local sales and services tax 22   receipts and interest and penalties from a county-imposed tax   23   as specified in section 423.2A, subsection 2, paragraph a , 24   including any interest and penalties, to the countys account 25   in the local sales and services use tax fund for the county in 26   from which the tax was collected. The director shall credit 27   the use tax receipts as specified in section 423.43, subsection 28   1, paragraph   b , subparagraph (1), subparagraph divisions (b) 29   and (c), including any interest and penalties, to the countys   30   account in the local sales and use tax fund for the county 31   from which the use tax was paid.   If the director is unable to 32   determine from which county any of the receipts were collected 33   or paid, as applicable   , those receipts shall be allocated among 34   the possible counties based on allocation rules adopted by the 35   -17-   LSB 1461XC (12) 90   md/jh   17/ 71                         

  S.F. _____   director. 1   b. The director shall credit the designated amount of the 2   increase in local   sales and services tax receipts, as computed 3   in section 423B.10 , collected in an urban renewal area of an 4   eligible city that has adopted an ordinance pursuant to section 5   423B.10, subsection 2 , into a special city account in the local 6   sales and services use tax fund. 7   c. The director shall credit the local sales and services 8   tax receipts and interest and penalties from a city-imposed tax   9   under section 423B.1, subsection 2 , to the citys account in 10   the local sales and services tax fund.   11   Sec. 45. Section 423B.7, subsections 2, 3, and 4, Code 2023, 12   are amended to read as follows: 13   2. The director of revenue by the last day of each 14   month shall transfer to each city or county where the local   15   option tax is imposed the amount of tax moneys remitted to 16   the department attributable to each city or county from the 17   preceding month. 18   3. Seventy-five percent of each countys account shall be 19   remitted on the basis of the countys population residing in 20   the unincorporated area where the tax was imposed   and those the 21   incorporated areas where the tax was imposed as follows: 22   a. To the board of supervisors a pro rata share based upon 23   the percentage of the above population of the county residing 24   in the unincorporated area of the county where the tax was   25   imposed according to the most recent certified federal census. 26   b. To each city in the county where the tax was imposed 27   a pro rata share based upon the percentage of the citys 28   population residing in the county to the above population of 29   the county according to the most recent certified federal 30   census.   31   c. If a subsequent certified census exists which modifies 32   that most recent certified federal census for a participating   33   jurisdiction under paragraphs a and b , the computations 34   under paragraphs a and b shall utilize the subsequent 35   -18-   LSB 1461XC (12) 90   md/jh   18/ 71                       

  S.F. _____   certified census in the distribution formula under rules 1   established by the director of revenue. 2   4. Twenty-five percent of each countys account shall 3   be remitted based on the sum of property tax dollars levied 4   by the board of supervisors if the tax was imposed in the 5   unincorporated areas and by   each city in the county where the 6   tax was imposed during the three-year period beginning July 1, 7   1982, and ending June 30, 1985, as follows: 8   a. To the board of supervisors a pro rata share based upon 9   the percentage of the total property tax dollars levied by the 10   board of supervisors during the above three-year period. 11   b. To each city council where the tax was imposed   a pro rata 12   share based upon the percentage of property tax dollars levied 13   by the city during the above three-year period of the above 14   total property tax dollars levied by the board of supervisors 15   and each city where the tax was imposed during the above 16   three-year period. 17   Sec. 46. Section 423B.7, subsection 5, Code 2023, is amended 18   by striking the subsection. 19   Sec. 47. Section 423B.7, subsections 6 and 7, Code 2023, are 20   amended to read as follows: 21   6. From each special city account under subsection 1,   22   paragraph   b , the sales and services tax revenues shall be 23   remitted to the city council for deposit in the special fund 24   created in section 403.19, subsection 2 , to be used by the city 25   as provided in section 423B.10 . The distribution from the 26   special city account is not subject to the distribution formula 27   provided in subsections 3 , and 4 , and 5 . 28   7. a. Subject to the requirement of paragraph b and the 29   requirements under section 423B.1, subsection 3   , local sales 30   and services tax moneys amounts received by a city or county 31   under this chapter   may be expended for any lawful purpose of 32   the city or county, including but not limited to expenses 33   related to providing emergency medical services within the 34   applicable city or county. 35   -19-   LSB 1461XC (12) 90   md/jh   19/ 71                    

  S.F. _____   b. Each city located in whole or in part in a qualified 1   county and each qualified county for the unincorporated area   2   for which the imposition of the local sales and services tax 3   in the city or portion thereof or the unincorporated area, as 4   applicable, was   revenue purpose statement approved at election 5   on or after January 1, 2019   2025 , shall require the use of 6   not less than fifty percent of the moneys received from the 7   qualified countys account in the local sales and services 8   tax fund   applicable county under this chapter for property 9   tax relief. However, for a county with a population of four 10   hundred thousand or more, a revenue purpose statement governing   11   the use of revenues for the unincorporated area of the county 12   approved on or after January 1, 2025, shall require the use of 13   seventy-five percent of the moneys received by the county under   14   this chapter for property tax relief. 15   c. For purposes of this subsection, property tax relief 16   includes payments under a chapter 28E agreement for purposes of 17   a regional transit district if such payments are used to reduce   18   the regional transit district levy under section 28M.5. For a   19   city located in whole or in part in a county with a population 20   of four hundred thousand or more, the use of revenues received   21   under this chapter for the purposes of this paragraph shall 22   not exceed ten percent of the amount received and for a county   23   with a population of four hundred thousand or more, for the 24   unincorporated area, shall not exceed twenty-five percent of 25   the amount received under this chapter. 26   Sec. 48. Section 423B.9, subsection 1, paragraphs b and c, 27   Code 2023, are amended to read as follows: 28   b. Designated portion means the portion of the local   29   option sales and services tax   revenues received under this 30   chapter which is authorized to be expended for one or a 31   combination of purposes under an adopted public measure. 32   c. Secondary recipient means a political subdivision of 33   the state which is to receive revenues   amounts from a local 34   option sales and services tax revenues under this chapter 35   -20-   LSB 1461XC (12) 90   md/jh   20/ 71                                            

  S.F. _____   over a period of years pursuant to the terms of a chapter 28E 1   agreement with one or more cities or counties. 2   Sec. 49. Section 423B.9, subsections 2 and 3, Code 2023, are 3   amended to read as follows: 4   2. An issuer of public bonds which is a recipient of 5   revenues from a local option sales and services tax imposed   6   pursuant to this chapter may issue bonds in anticipation of 7   the collection of one or more designated portions of the 8   local option sales and services tax   such revenues and may 9   pledge irrevocably an amount of the revenue derived from the 10   designated portions for each of the years the bonds remain 11   outstanding to the payment of the bonds. Bonds may be issued 12   only for one or more of the purposes set forth on the ballot   13   proposition concerning the imposition of the local option sales   14   and services tax in the revenue purpose statement , except bonds 15   shall not be issued which are payable from that portion of tax 16   revenues designated for property tax relief. The bonds may be 17   issued in accordance with the procedures set forth in either 18   subsection 3 or 4 . 19   3. The governing body of an issuer may authorize the 20   issuance of bonds which are payable from the designated portion 21   of the revenues of the local option sales and services tax   22   received under this chapter   , and not from property tax, by 23   following the authorization procedures set forth for cities 24   in section 384.83 . Bonds may be issued for the purpose of 25   refunding outstanding and previously issued bonds under this 26   subsection without otherwise complying with the provisions of 27   this subsection .   28   Sec. 50. Section 423B.9, subsection 4, paragraph b, Code 29   2023, is amended to read as follows: 30   b. The provisions of chapter 76 apply to the bonds payable 31   as provided in this subsection , except that the mandatory levy 32   to be assessed pursuant to section 76.2 shall be at a rate 33   to generate an amount which together with the receipts from 34   the pledged designated portion of the local option sales and   35   -21-   LSB 1461XC (12) 90   md/jh   21/ 71             

  S.F. _____   services tax revenues received under this chapter is sufficient 1   to pay the interest and principal on the bonds. All amounts 2   collected as a result of the levy assessed pursuant to section 3   76.2 and paid out in the first instance for bond principal 4   and interest shall be repaid to the bond issuer which levied 5   the tax from the first available designated portion of local   6   option sales and services tax collections revenues received 7   under this chapter in excess of the requirement for the payment 8   of the principal and interest of the bonds and when repaid 9   shall be applied in reduction of property taxes. The amount 10   of bonds which may be issued under section 76.3 shall be the 11   amount which could be retired from the actual collections of 12   the designated portions of the local option sales and services   13   tax   revenues received under this chapter for the last four 14   calendar quarters, as certified by the director of revenue. 15   The amount of tax revenues pledged jointly by other cities or 16   counties may be considered for the purpose of determining the 17   amount of bonds which may be issued. If the local option sales   18   and services tax has been in effect   revenues have been received 19   under this chapter for less than four calendar quarters, the 20   tax collected   revenues received within the shorter period may 21   be adjusted to project the collections amount of the designated 22   portion for the full year for the purpose of determining the 23   amount of the bonds which may be issued. The provisions of 24   this section constitute separate authorization for the issuance 25   of bonds and shall prevail in the event of conflict with 26   any other provision of the Code limiting the amount of bonds 27   which may be issued or the source of payment of the bonds. 28   Bonds issued under this section shall not limit or restrict 29   the authority of the bond issuer to issue bonds under other 30   provisions of the Code. 31   Sec. 51. Section 423B.9, subsection 5, Code 2023, is amended   32   to read as follows: 33   5. A city or county, jointly with one or more other 34   political subdivisions as provided in chapter 28E , may pledge 35   -22-   LSB 1461XC (12) 90   md/jh   22/ 71                   

  S.F. _____   irrevocably any amount derived from the designated portions 1   of the revenues of the local option sales and services tax   2   received under this chapter to the support or payment of bonds 3   of an issuer, issued for one or more purposes set forth on 4   the ballot proposition concerning the imposition of the local   5   option sales and services tax   in the revenue purpose statement 6   or a political subdivision may apply the proceeds of its bonds 7   to the support of any such purpose. 8   Sec. 52. Section 423B.10, subsection 1, paragraph b, Code 9   2023, is amended to read as follows: 10   b. Eligible city means a city in which a local sales and   11   services tax imposed by the county applies or a city described 12   in section 423B.1, subsection 2 , paragraph a , and in which an 13   urban renewal area has been designated. 14   Sec. 53. Section 423B.10, subsections 2, 3, 5, and 6, Code 15   2023, are amended to read as follows: 16   2. a. Upon approval by the board of supervisors of each 17   applicable county pursuant to paragraph b , an eligible city 18   may by ordinance of the city council provide for the use of a 19   designated amount of the increased local   sales and services 20   tax revenues collected   received under this chapter which are 21   attributable to retail establishments in an urban renewal 22   area to fund urban renewal projects located in the area. The 23   designated amount may be all or a portion of such increased 24   revenues. 25   b. A city shall not adopt an ordinance under paragraph 26   a unless the board of supervisors of each county where the 27   urban renewal area from which such local   sales and services   28   tax revenues are to be collected and used to fund urban 29   renewal projects is located first adopts a resolution approving 30   the collection and   use of such local sales and services tax 31   revenues.   32   3. To determine the revenue increase for purposes of 33   subsection 2 , revenue amounts shall be calculated by the 34   department of revenue as follows: 35   -23-   LSB 1461XC (12) 90   md/jh   23/ 71                     

  S.F. _____   a. Determine the amount of local sales and services tax 1   revenue collected and attributable to a one percent sales and   2   services tax from retail establishments located in the area 3   comprising the urban renewal area during the base year. 4   b. Determine the current year one percent sales and services   5   tax   revenue amount for each fiscal year following the base year 6   in the manner specified in paragraph a . 7   c. The excess of the amount determined in paragraph b over 8   the base year revenue amount determined in paragraph a is the 9   increase in the local   sales and services tax revenues of which 10   the designated amount is to be deposited in the special city 11   account created in section 423B.7, subsection 6 . 12   5. In addition to the moneys received pursuant to the 13   ordinance authorized under subsection 2 , an eligible city 14   may deposit any other local   sales and services tax revenues 15   received by it the city pursuant to the distribution formula in 16   section 423B.7, subsections 3, 4, and 5 , to the special fund 17   described in section 403.19, subsection 2 . 18   6. For purposes of this section , the eligible city shall 19   assist the department of revenue in identifying retail 20   establishments in the urban renewal area that are collecting 21   the local   sales and services tax. This process shall be 22   ongoing until the ordinance is repealed. 23   Sec. 54. REPEAL. Sections 423B.2, 423B.3, 423B.4, 423B.5, 24   423B.6, and 423B.8, Code 2023, are repealed. 25   Sec. 55. EFFECTIVE DATE. This division of this Act takes 26   effect January 1, 2025. 27   DIVISION IV   28   HOMESTEAD PROPERTY TAX CREDIT   29   Sec. 56. Section 2.48, subsection 3, paragraph f, 30   subparagraph (1), Code 2023, is amended to read as follows: 31   (1) The homestead tax exemption and   credit under chapter 32   425 . 33   Sec. 57. Section 25B.7, subsection 2, paragraph a, Code 34   2023, is amended by striking the paragraph. 35   -24-   LSB 1461XC (12) 90   md/jh   24/ 71             

  S.F. _____   Sec. 58. Section 100.18, subsection 2, paragraph b, Code 1   2023, is amended to read as follows: 2   b. The rules shall require the installation of smoke 3   detectors in existing single-family rental units and 4   multiple-unit residential buildings. Existing single-family 5   dwelling units shall be equipped with approved smoke detectors. 6   A person who files for a homestead tax exemption and   credit 7   pursuant to chapter 425 shall certify that the single-family 8   dwelling unit for which the credit is filed has a smoke 9   detector installed in compliance with this section , or that one 10   will be installed within thirty days of the date the filing 11   for the credit is made. The state fire marshal shall adopt 12   rules and establish appropriate procedures to administer this 13   subsection . 14   Sec. 59. Section 100.18, subsection 3, paragraph b, Code 15   2023, is amended to read as follows: 16   b. The rules shall require the installation of carbon 17   monoxide alarms in existing single-family rental units and 18   multiple-unit residential buildings that have a fuel-fired 19   heater or appliance, a fireplace, or an attached garage. 20   Existing single-family dwellings that have a fuel-fired heater 21   or appliance, a fireplace, or an attached garage shall be 22   equipped with approved carbon monoxide alarms. For purposes 23   of this paragraph, approved carbon monoxide alarm means a 24   carbon monoxide alarm that meets the standards established by 25   the underwriters laboratories or is approved by the state fire 26   marshal as established by rule under subsection 5 . A person 27   who files for a homestead tax exemption and   credit pursuant 28   to chapter 425 shall certify that the single-family dwelling 29   for which the credit is filed and that has a fuel-fired heater   30   or appliance, a fireplace, or an attached garage, has carbon 31   monoxide alarms installed in compliance with this section , 32   or that such alarms will be installed within thirty days of 33   the date the filing for the credit is made. The state fire 34   marshal shall adopt rules and establish appropriate procedures 35   -25-   LSB 1461XC (12) 90   md/jh   25/ 71    

  S.F. _____   to administer this subsection . 1   Sec. 60. Section 103.22, subsection 7, Code 2023, is amended 2   to read as follows: 3   7. Prohibit an owner of property from performing work on the 4   owners principal residence, if such residence is an existing 5   dwelling rather than new construction and is not an apartment 6   that is attached to any other apartment or building, as those 7   terms are defined in section 499B.2 , and is not larger than a 8   single-family dwelling, or require such owner to be licensed 9   under this chapter . In order to qualify for inapplicability 10   pursuant to this subsection , a residence shall qualify for the 11   homestead tax exemption and credit   . 12   Sec. 61. Section 105.11, subsection 3, Code 2023, is amended 13   to read as follows: 14   3. Prohibit an owner of property from performing work on the 15   owners principal residence, if such residence is an existing 16   dwelling rather than new construction and is not larger than a 17   single-family dwelling, or farm property, excluding commercial 18   or industrial installations or installations in public use 19   buildings or facilities, or require such owner to be licensed 20   under this chapter . In order to qualify for inapplicability 21   pursuant to this subsection , a residence shall qualify for the 22   homestead tax exemption and credit   . 23   Sec. 62. Section 216.12, subsection 1, paragraph e, Code 24   2023, is amended to read as follows: 25   e. The rental or leasing of a housing accommodation in a 26   building which contains housing accommodations for not more 27   than four families living independently of each other, if the 28   owner resides in one of the housing accommodations for which 29   the owner qualifies for the homestead tax exemption and   credit 30   under section 425.1 . 31   Sec. 63. Section 321.1, subsection 6C, Code 2023, is amended   32   to read as follows: 33   6C. Bona fide residence or bona fide address means the 34   current street or highway address of an individuals residence. 35   -26-   LSB 1461XC (12) 90   md/jh   26/ 71     

  S.F. _____   The bona fide residence of a person with more than one dwelling 1   is the dwelling for which the person claims a homestead tax 2   exemption and   credit under chapter 425 , if applicable. The 3   bona fide residence of a homeless person is a primary nighttime 4   residence meeting one of the criteria listed in section 48A.2, 5   subsection 3 . 6   Sec. 64. Section 321.1A, subsection 1, paragraph a, Code 7   2023, is amended to read as follows: 8   a. The person has filed for a homestead tax exemption and   9   credit on property in this state. 10   Sec. 65. Section 331.401, subsection 1, paragraphs e and f, 11   Code 2023, are amended to read as follows: 12   e. Adopt resolutions authorizing the county assessor 13   to provide forms for homestead tax   exemption and credit 14   claimants as provided in section 425.2 and military service tax 15   exemptions as provided in section 426A.14 . 16   f. Examine and allow or disallow claims for homestead tax 17   exemption and credit   in accordance with section 425.3 and 18   claims for military service tax exemption in accordance with 19   chapter 426A . The board, by a single resolution, may allow or 20   disallow the exemptions recommended by the assessor. 21   Sec. 66. Section 331.512, subsection 3, Code 2023, is 22   amended to read as follows: 23   3. Carry out duties relating to the homestead tax exemption   24   and credit and agricultural land tax credit as provided in 25   chapters 425 and 426 . 26   Sec. 67. Section 331.559, subsection 12, Code 2023, is   27   amended to read as follows: 28   12. Carry out duties relating to the administration of 29   the homestead tax exemption and   credit and other credits as 30   provided in sections 425.4 , 425.5 , 425.7 , 425.9 , 425.10 , and 31   425.25 . 32   Sec. 68. Section 404.3, subsection 1, Code 2023, is amended   33   to read as follows: 34   1. All qualified real estate assessed as residential 35   -27-   LSB 1461XC (12) 90   md/jh   27/ 71            

  S.F. _____   property is eligible to receive an exemption from taxation 1   based on the actual value added by the improvements. The 2   exemption is for a period of ten years. The amount of the 3   exemption is equal to a percent of the actual value added by 4   the improvements, determined as follows: One hundred fifteen 5   percent of the value added by the improvements. However, the 6   amount of the actual value added by the improvements which 7   shall be used to compute the exemption shall not exceed twenty 8   thousand dollars and the granting of the exemption shall not 9   result in the actual value of the qualified real estate being 10   reduced below the actual value on which the homestead credit   11   exemption is computed under section 425.1 . 12   Sec. 69. Section 425.1, subsection 1, paragraph a, Code 13   2023, is amended to read as follows: 14   a. A homestead credit fund is created. There   For fiscal 15   years beginning before July 1, 2028, there is appropriated 16   annually from the general fund of the state to the department 17   of revenue to be credited to the homestead credit fund, an 18   amount sufficient to implement this subchapter . 19   Sec. 70. Section 425.1, subsection 1, Code 2023, is amended 20   by adding the following new paragraph: 21   NEW PARAGRAPH   . c. All moneys in the homestead credit fund 22   at the end of the fiscal year beginning July 1, 2028, shall be 23   transferred by the department of revenue for deposit in the 24   general fund of the state. 25   Sec. 71. Section 425.1, subsections 2, 4, and 5, Code 2023, 26   are amended to read as follows:   27   2. a. For fiscal years beginning before July 1, 2028, the 28   moneys in the homestead credit fund shall be apportioned each 29   year so as to give a credit against the tax on each eligible   30   homestead in the state, but not more than the amount under 31   paragraph   b . 32   b. (1) The For assessment years beginning before July 33   1, 2025, the   homestead credit fund shall be apportioned each 34   year so as to give a credit against the tax on each eligible 35   -28-   LSB 1461XC (12) 90   md/jh   28/ 71                       

  S.F. _____   homestead in the state in an amount equal to the actual levy on 1   the first four thousand eight hundred fifty dollars of actual 2   value for each homestead. 3   (2)   For property taxes due and payable in the fiscal year 4   beginning July 1, 2025, the homestead credit fund shall be   5   apportioned each year so as to give a credit against the tax   6   on each eligible homestead in the state in an amount equal 7   to the actual levy on the first three thousand six hundred 8   forty dollars of actual value for each homestead exempted under   9   section 425.1A. 10   (3)   For property taxes due and payable in the fiscal year 11   beginning July 1, 2026, the homestead credit fund shall be 12   apportioned each year so as to give a credit against the tax 13   on each eligible homestead in the state in an amount equal to   14   the actual levy on the first two thousand four hundred thirty 15   dollars of actual value for each homestead exempted under 16   section 425.1A. 17   (4)   For property taxes due and payable in the fiscal year 18   beginning July 1, 2027, the homestead credit fund shall be   19   apportioned each year so as to give a credit against the tax 20   on each eligible homestead in the state in an amount equal to   21   the actual levy on the first one thousand two hundred twenty 22   dollars of actual value for each homestead exempted under   23   section 425.1A. 24   4. Annually For fiscal years beginning before July 1, 2028, 25   annually the department of revenue shall certify to the county 26   auditor of each county the credit and its amount in dollars. 27   Each county auditor shall then enter the credit against the 28   tax levied on each eligible homestead in each county payable 29   during the ensuing year, designating on the tax lists the 30   credit as being from the homestead credit fund, and credit 31   shall then be given to the several taxing districts in which 32   eligible homesteads are located in an amount equal to the 33   credits allowed on the taxes of the homesteads. The amount of   34   credits shall be apportioned by each county treasurer to the 35   -29-   LSB 1461XC (12) 90   md/jh   29/ 71                                

  S.F. _____   several taxing districts as provided by law, in the same manner 1   as though the amount of the credit had been paid by the owners 2   of the homesteads. However, the several taxing districts shall 3   not draw the funds so credited until after the semiannual 4   allocations have been received by the county treasurer, as 5   provided in this subchapter . Each county treasurer shall show 6   on each tax receipt the amount of credit received from the 7   homestead credit fund. 8   5. If   For property taxes due and payable in fiscal years 9   beginning before July 1, 2028, if the homestead tax credit 10   computed under this section is less than sixty-two dollars 11   and fifty cents, the amount of homestead tax credit on that 12   eligible homestead shall be sixty-two dollars and fifty cents 13   subject to the limitation imposed in this section . 14   Sec. 72. NEW SECTION   . 425.1A Homestead tax exemption. 15   The following exemptions from taxation shall be allowed: 16   1. For the assessment year beginning January 1, 2024, the 17   eligible homestead, not to exceed two thousand five hundred 18   dollars in actual value. 19   2. For the assessment year beginning January 1, 2025, the 20   eligible homestead, not to exceed five thousand dollars in 21   actual value. 22   3. For the assessment year beginning January 1, 2026, the 23   eligible homestead, not to exceed seven thousand five hundred 24   dollars in actual value. 25   4. For the assessment year beginning January 1, 2027, and 26   each succeeding assessment year, the eligible homestead, not to 27   exceed ten thousand dollars in actual value.   28   Sec. 73. Section 425.2, subsections 1, 2, 4, and 5, Code   29   2023, are amended to read as follows: 30   1. A person who wishes to qualify for the homestead 31   exemption and   credit allowed under this subchapter shall 32   obtain the appropriate forms for filing for the exemption and 33   credit from the assessor. The person claiming the exemption   34   and credit shall file a verified statement and designation of 35   -30-   LSB 1461XC (12) 90   md/jh   30/ 71          

  S.F. _____   homestead with the assessor for the year for which the person 1   is first claiming the exemption and   credit. The claim shall be 2   filed not later than July 1 of the year for which the person is 3   claiming the exemption and credit. A claim filed after July 1 4   of the year for which the person is claiming the exemption and   5   credit shall be considered as a claim filed for the following 6   year. 7   2. Upon the filing and allowance of the claim, the claim 8   shall be allowed on that homestead for successive years without 9   further filing as long as the property is legally or equitably 10   owned and used as a homestead by that person or that persons 11   spouse on July 1 of each of those successive years, and the 12   owner of the property being claimed as a homestead declares 13   residency in Iowa for purposes of income taxation, and the 14   property is occupied by that person or that persons spouse 15   for at least six months in each of those calendar years in 16   which the fiscal year begins. When the property is sold or 17   transferred, the buyer or transferee who wishes to qualify 18   shall refile for the exemption and   credit. However, when the 19   property is transferred as part of a distribution made pursuant 20   to chapter 598 , the transferee who is the spouse retaining 21   ownership of the property is not required to refile for the 22   exemption and   credit. Property divided pursuant to chapter 598 23   shall not be modified following the division of the property. 24   An owner who ceases to use a property for a homestead or 25   intends not to use it as a homestead for at least six months in 26   a calendar year shall provide written notice to the assessor 27   by July 1 following the date on which the use is changed. A 28   person who sells or transfers a homestead or the personal 29   representative of a deceased person who had a homestead at the 30   time of death, shall provide written notice to the assessor 31   that the property is no longer the homestead of the former 32   claimant. 33   4. Any person sixty-five years of age or older or any person 34   who is disabled may request, in writing, from the appropriate 35   -31-   LSB 1461XC (12) 90   md/jh   31/ 71       

  S.F. _____   assessor forms for filing for homestead tax exemption and 1   credit. Any person sixty-five years of age or older or who is 2   disabled may complete the form, which shall include a statement 3   of homestead, and mail or return it to the appropriate 4   assessor. The signature of the claimant on the statement shall 5   be considered the claimants acknowledgment that all statements 6   and facts entered on the form are correct to the best of the 7   claimants knowledge. 8   5. Upon adoption of a resolution by the county board of 9   supervisors, any person may request, in writing, from the 10   appropriate assessor forms for the filing for homestead tax 11   exemption and   credit. The person may complete the form, which 12   shall include a statement of homestead, and mail or return it 13   to the appropriate assessor. The signature of the claimant on 14   the statement of homestead shall be considered the claimants 15   acknowledgment that all statements and facts entered on the 16   form are correct to the best of the claimants knowledge. 17   Sec. 74. Section 425.3, subsection 4, Code 2023, is amended 18   to read as follows: 19   4. The county auditor shall forward the claims to the board 20   of supervisors. The board shall allow or disallow the claims. 21   If the board disallows a claim, it shall send written notice, 22   by mail, to the claimant at the claimants last known address. 23   The notice shall state the reasons for disallowing the claim 24   for the credit   . The board is not required to send notice that 25   a claim is disallowed if the claimant voluntarily withdraws the 26   claim.   27   Sec. 75. Section 425.4, Code 2023, is amended to read as 28   follows:   29   425.4 Certification to treasurer.   30   All claims which have been allowed by the board of 31   supervisors shall be certified on or before August 1, in each 32   year, by the county auditor to the county treasurer, which 33   certificates shall list the total amount of dollars, listed by 34   taxing district in the county, due for homestead tax exemptions   35   -32-   LSB 1461XC (12) 90   md/jh   32/ 71      

  S.F. _____   and credits claimed and allowed. The county treasurer shall 1   forthwith   then certify to the department of revenue the total 2   amount of dollars, listed by taxing district in the county, due 3   for homestead tax exemptions and credits claimed and allowed. 4   Sec. 76. Section 425.6, Code 2023, is amended to read as 5   follows: 6   425.6 Waiver by neglect. 7   If a person fails to file a claim or to have a claim on file 8   with the assessor for the credits provided in this subchapter , 9   the person is deemed to have waived the homestead exemption   10   and   credit for the year in which the person failed to file the 11   claim or to have a claim on file with the assessor. 12   Sec. 77. Section 425.7, subsection 3, Code 2023, is amended 13   to read as follows: 14   3. a. If the department of revenue determines that a claim 15   for homestead exemption and   credit has been allowed by the 16   board of supervisors which is not justifiable under the law 17   and not substantiated by proper facts, the department may, at 18   any time within thirty-six months from July 1 of the year in 19   which the claim is allowed, set aside the allowance. Notice 20   of the disallowance shall be given to the county auditor of 21   the county in which the claim has been improperly granted and 22   a written notice of the disallowance shall also be addressed 23   to the claimant at the claimants last known address. The 24   claimant or board of supervisors may appeal to the director 25   of revenue within thirty days from the date of the notice of 26   disallowance. The director shall grant a hearing and if, upon 27   the hearing, the director determines that the disallowance was 28   incorrect, the director shall set aside the disallowance. The 29   director shall notify the claimant and the board of supervisors 30   of the result of the hearing. The claimant or the board of 31   supervisors may seek judicial review of the action of the 32   director of revenue in accordance with chapter 17A . 33   b. If a claim is disallowed by the department of revenue 34   and not appealed to the director of revenue or appealed to 35   -33-   LSB 1461XC (12) 90   md/jh   33/ 71         

  S.F. _____   the director of revenue and thereafter upheld upon final 1   resolution, including any judicial review, any amounts of 2   exemptions allowed and   credits allowed and paid from the 3   homestead credit fund including the penalty, if any, become a 4   lien upon the property on which the exemption and   credit was 5   originally granted, if still in the hands of the claimant, 6   and not in the hands of a bona fide purchaser, and any amount 7   so erroneously paid including the penalty, if any, shall be 8   collected by the county treasurer in the same manner as other 9   taxes and the collections shall be returned to the department 10   of revenue and credited to the homestead credit fund. The 11   director of revenue may institute legal proceedings against a 12   homestead credit claimant for the collection of payments made 13   on disallowed credits and the penalty, if any. If a person 14   makes a false claim or affidavit with fraudulent intent to 15   obtain the homestead exemption and   credit, the person is guilty 16   of a fraudulent practice and the claim shall be disallowed in 17   full. If the credit has been paid, the amount of the credit 18   plus a penalty equal to twenty-five percent of the amount of 19   credit plus interest, at the rate in effect under section 20   421.7 , from the time of payment shall be collected by the 21   county treasurer in the same manner as other property taxes, 22   penalty, and interest are collected and when collected shall 23   be paid to the director of revenue. If a homestead exemption   24   and credit is disallowed and the claimant failed to give 25   written notice to the assessor as required by section 425.2 26   when the property ceased to be used as a homestead by the 27   claimant, a civil penalty equal to five percent of the amount 28   of the disallowed exemption or credit is assessed against the 29   claimant.   30   Sec. 78. Section 425.8, subsection 1, Code 2023, is amended   31   to read as follows: 32   1. The director of revenue shall prescribe the form 33   for the making of a verified statement and designation of 34   homestead, the form for the supporting affidavits required 35   -34-   LSB 1461XC (12) 90   md/jh   34/ 71        

  S.F. _____   herein, and such other forms as may be necessary for the proper 1   administration of this subchapter . Whenever necessary, the 2   department of revenue shall forward to the county auditors of 3   the several counties in the state the prescribed sample forms, 4   and the county auditors shall furnish blank forms prepared 5   in accordance therewith with the assessment rolls, books, 6   and supplies delivered to the assessors. The department of 7   revenue shall prescribe and the county auditors shall provide 8   on the forms for claiming the homestead exemption and   credit a 9   statement to the effect that the owner realizes that the owner 10   must give written notice to the assessor when the owner changes 11   the use of the property. 12   Sec. 79. Section 425.9, subsections 2, 3, and 4, Code 2023, 13   are amended to read as follows: 14   2. If any claim for exemption and   credit made hereunder 15   has been denied by the board of supervisors, and such action 16   is subsequently reversed on appeal, the exemption and credit 17   shall be allowed on the homestead involved in said appeal, and 18   the director of revenue, the county auditor, and the county 19   treasurer shall make such exemption and   credit and change their 20   books and records accordingly. 21   3. In the event the appealing taxpayer has paid one or both 22   of the installments of the tax payable in the year or years in 23   question on such homestead valuation, remittance shall be made 24   to such taxpayer of the amount of such credit or exemption   . 25   4. The amount of such credit shall be allocated and paid 26   from the surplus redeposited in the homestead credit fund 27   provided for in subsection 1 . The amount of such exemption not 28   covered by the credit shall be allowed as a credit on future 29   taxes due and payable.   30   Sec. 80. Section 425.10, Code 2023, is amended to read as   31   follows:   32   425.10 Reversal of allowed claim.   33   In the event any claim is allowed, and subsequently reversed 34   on appeal, any exemption and   credit made under the claim 35   -35-   LSB 1461XC (12) 90   md/jh   35/ 71            

  S.F. _____   shall be void. The amount of the erroneous exemption and 1   credit shall be charged against the property in question, and 2   the director of revenue, the county auditor, and the county 3   treasurer are authorized and directed to correct their books 4   and records accordingly. The amount of the erroneous credit, 5   when collected, shall be returned by the county treasurer to 6   the homestead credit fund to be reallocated the following year 7   as provided in this subchapter . 8   Sec. 81. Section 425.11, subsection 1, paragraph d, 9   subparagraph (1), unnumbered paragraph 1, Code 2023, is amended 10   to read as follows: 11   The homestead includes the dwelling house which the owner, 12   in good faith, is occupying as a home on July 1 of the year for 13   which the exemption and   credit is claimed and occupies as a 14   home for at least six months during the calendar year in which 15   the fiscal year begins, except as otherwise provided. 16   Sec. 82. Section 425.11, subsection 1, paragraph d, 17   subparagraph (3), Code 2023, is amended to read as follows: 18   (3) It must not embrace more than one dwelling house, but 19   where a homestead has more than one dwelling house situated 20   thereon, the exemption and   credit provided for in this 21   subchapter shall apply to the home and buildings used by the 22   owner, but shall not apply to any other dwelling house and 23   buildings appurtenant. 24   Sec. 83. Section 425.11, subsection 1, paragraph e, Code 25   2023, is amended to read as follows: 26   e. Owner means the person who holds the fee simple 27   title to the homestead, and in addition shall mean the person 28   occupying as a surviving spouse or the person occupying under 29   a contract of purchase which contract has been recorded in 30   the office of the county recorder of the county in which the 31   property is located; or the person occupying the homestead 32   under devise or by operation of the inheritance laws where 33   the whole interest passes or where the divided interest is 34   shared only by persons related or formerly related to each 35   -36-   LSB 1461XC (12) 90   md/jh   36/ 71     

  S.F. _____   other by blood, marriage or adoption; or the person occupying 1   the homestead is a shareholder of a family farm corporation 2   that owns the property; or the person occupying the homestead 3   under a deed which conveys a divided interest where the divided 4   interest is shared only by persons related or formerly related 5   to each other by blood, marriage or adoption; or where the 6   person occupying the homestead holds a life estate with the 7   reversion interest held by a nonprofit corporation organized 8   under chapter 504 , provided that the holder of the life estate 9   is liable for and pays property tax on the homestead; or where 10   the person occupying the homestead holds an interest in a 11   horizontal property regime under chapter 499B , regardless 12   of whether the underlying land committed to the horizontal 13   property regime is in fee or as a leasehold interest, provided 14   that the holder of the interest in the horizontal property 15   regime is liable for and pays property tax on the homestead; 16   or where the person occupying the homestead is a member of a 17   community land trust as defined in 42 U.S.C. 12773, regardless 18   of whether the underlying land is in fee or as a leasehold 19   interest, provided that the member of the community land trust 20   is occupying the homestead and is liable for and pays property 21   tax on the homestead. For the purpose of this subchapter , 22   the word owner shall be construed to mean a bona fide owner 23   and not one for the purpose only of availing the person of 24   the benefits of this subchapter . In order to qualify for the 25   homestead tax exemption and   credit, evidence of ownership shall 26   be on file in the office of the clerk of the district court   27   or recorded in the office of the county recorder at the time 28   the owner files with the assessor a verified statement of the   29   homestead claimed by the owner as provided in section 425.2 . 30   Sec. 84. Section 425.12, Code 2023, is amended to read as 31   follows:   32   425.12 Indian land. 33   Each forty acres of land, or fraction thereof, occupied by 34   a member or members of the Sac and Fox Indians in Tama county, 35   -37-   LSB 1461XC (12) 90   md/jh   37/ 71   

  S.F. _____   which land is held in trust by the secretary of the interior of 1   the United States for said Indians, shall be given a homestead 2   tax exemption and   credit within the meaning and under the 3   provisions of this subchapter . Application for such homestead 4   tax exemption and   credit shall be made to the county auditor of 5   Tama county and may be made by a representative of the tribal 6   council. 7   Sec. 85. Section 425.13, Code 2023, is amended to read as 8   follows: 9   425.13 Conspiracy to defraud. 10   If any two or more persons conspire and confederate together 11   with fraudulent intent to obtain the exemption and   credit 12   provided for under the terms of this subchapter by making a 13   false deed, or a false contract of purchase, they are guilty of 14   a fraudulent practice. 15   Sec. 86. Section 425.15, subsection 1, unnumbered paragraph 16   1, Code 2023, is amended to read as follows: 17   If the owner of a homestead allowed a   an exemption and credit 18   under this subchapter is any of the following, the exemption   19   shall be the total actual value of the homestead and, for 20   fiscal years for which credits are paid, the   credit allowed 21   on the homestead from the homestead credit fund shall be the 22   entire amount of the tax levied on the homestead: 23   Sec. 87. Section 425.15, subsections 2, 3, and 4, Code 2023, 24   are amended to read as follows: 25   2. a. For an owner described in subsection 1 , paragraph 26   a , b , or c , the exemption and   credit allowed shall be 27   continued to the estate of an owner who is deceased or the   28   surviving spouse and any child, as defined in section 234.1 , 29   who are the beneficiaries of a deceased owner, so long as the 30   surviving spouse remains unmarried. 31   b. An individual described in subsection 1 , paragraph 32   d , is no longer eligible for the exemption and   credit upon 33   termination of dependency and indemnity compensation under 38 34   U.S.C. 1301 et seq. 35   -38-   LSB 1461XC (12) 90   md/jh   38/ 71            

  S.F. _____   3. An owner or a beneficiary of an owner who elects to 1   secure the exemption and   credit provided in this section is not 2   eligible for any other real property tax exemption provided by 3   law for veterans of military service. 4   4. If an owner acquires a different homestead, the exemption   5   and   credit allowed under this section may be claimed on the new 6   homestead unless the owner fails to meet the other requirements 7   of this section . 8   Sec. 88. Section 425.15, subsection 5, paragraph a, Code 9   2023, is amended to read as follows: 10   a. Except as provided in paragraph b , the list of the 11   names and addresses of individuals allowed a   an exemption 12   and credit under this section and maintained by the county 13   recorder, county treasurer, county assessor, city assessor, or 14   other government body is confidential information and shall 15   not be disseminated to any person unless otherwise ordered by 16   a court or released by the lawful custodian of the records 17   pursuant to state or federal law. The county recorder, county 18   treasurer, county assessor, city assessor, or other government 19   body responsible for maintaining the names and addresses of 20   individuals allowed a   an exemption and credit under this 21   section may display such exemption and credit on individual 22   paper records and individual electronic records, including 23   display on an internet site. 24   Sec. 89. Section 425.17, subsection 8, Code 2023, is amended 25   to read as follows: 26   8. Property taxes due means property taxes including any 27   special assessments, but exclusive of delinquent interest and 28   charges for services, due on a claimants homestead in this 29   state, but includes only property taxes for which the claimant 30   is liable and which will actually be paid by the claimant. 31   However, if the claimant is a person whose property taxes have 32   been suspended under sections 427.8 and 427.9 , property taxes 33   due means property taxes including any special assessments, 34   but exclusive of delinquent interest and charges for services, 35   -39-   LSB 1461XC (12) 90   md/jh   39/ 71           

  S.F. _____   due on a claimants homestead in this state, but includes only 1   property taxes for which the claimant is liable and which 2   would have to be paid by the claimant if the payment of the 3   taxes has not been suspended pursuant to sections 427.8 and 4   427.9 . Property taxes due shall be computed with no deduction 5   for any credit under this subchapter or for any homestead 6   exemption or   credit allowed under section 425.1 . Each claim 7   shall be based upon the taxes due during the fiscal year next 8   following the base year. If a homestead is owned by two or 9   more persons as joint tenants or tenants in common, and one or 10   more persons are not members of claimants household, property 11   taxes due is that part of property taxes due on the homestead 12   which equals the ownership percentage of the claimant and the 13   claimants household. The county treasurer shall include with 14   the tax receipt a statement that if the owner of the property 15   is eighteen years of age or over, the person may be eligible 16   for the credit allowed under this subchapter . If a homestead 17   is an integral part of a farm, the claimant may use the total 18   property taxes due for the larger unit. If a homestead is an 19   integral part of a multidwelling or multipurpose building the 20   property taxes due for the purpose of this subsection shall be 21   prorated to reflect the portion which the value of the property 22   that the household occupies as its homestead is to the value 23   of the entire structure. For purposes of this subsection , 24   unit refers to that parcel of property covered by a single tax 25   statement of which the homestead is a part. 26   Sec. 90. Section 425.23, subsection 2, Code 2023, is amended   27   to read as follows: 28   2. The actual credit for property taxes due shall be 29   determined by subtracting from the tentative credit the amount 30   of the tax reduction resulting from   the homestead exemption 31   and   credit under section sections 425.1 which is allowed 32   as a credit and 425.1A against property taxes due in the 33   fiscal year next following the base year by the claimant or 34   any person of the claimants household. If the subtraction 35   -40-   LSB 1461XC (12) 90   md/jh   40/ 71           

  S.F. _____   produces a negative amount, there shall be no credit but 1   no refund shall be required. The actual reimbursement for 2   rent constituting property taxes paid shall be equal to the 3   tentative reimbursement. 4   Sec. 91. Section 435.26, subsection 1, paragraph a, Code 5   2023, is amended to read as follows: 6   a. A mobile home or manufactured home which is located 7   outside a manufactured home community or mobile home park shall 8   be converted to real estate by being placed on a permanent 9   foundation and shall be assessed for real estate taxes. A 10   home, after conversion to real estate, is eligible for the 11   homestead tax exemption and   credit and the military service tax 12   exemption as provided in sections 425.2 and 426A.11 . A taxable 13   mobile home or manufactured home which is located outside 14   of a manufactured home community or mobile home park as of 15   January 1, 1995, is also exempt from the permanent foundation 16   requirements of this chapter until the home is relocated. 17   Sec. 92. Section 435.26A, subsection 3, Code 2023, is 18   amended to read as follows: 19   3. After the surrender of a manufactured homes certificate 20   of title under this section , the manufactured home shall 21   continue to be taxed under section 435.22 and is not eligible 22   for the homestead tax exemption and   credit or the military 23   service tax exemption and credit . A foreclosure action on a 24   manufactured home whose title has been surrendered under this 25   section shall be conducted as a real estate foreclosure. A tax 26   lien and its priority shall remain the same on a manufactured 27   home after its certificate of title has been surrendered.   28   Sec. 93. Section 483A.24, subsection 19, Code 2023, is   29   amended to read as follows: 30   19. Upon payment of a fee established by rules adopted 31   pursuant to section 483A.1 for a lifetime trout fishing 32   license, the department shall issue a lifetime trout fishing 33   license to a person who is at least sixty-five years of age or 34   to a person who qualifies for the disabled veteran homestead 35   -41-   LSB 1461XC (12) 90   md/jh   41/ 71     

  S.F. _____   exemption and credit under section 425.15 . The department 1   shall prepare an application to be used by a person requesting 2   a lifetime trout fishing license under this subsection . 3   Sec. 94. Section 499A.14, Code 2023, is amended to read as 4   follows: 5   499A.14 Taxation. 6   The real estate shall be taxed in the name of the 7   cooperative, and each member of the cooperative shall pay 8   that members proportionate share of the tax in accordance 9   with the proration formula set forth in the bylaws, and each 10   member occupying an apartment as a residence shall receive 11   that members proportionate homestead tax exemption and   credit 12   and each veteran of the military services of the United States 13   identified as such under the laws of the state of Iowa or the 14   United States shall receive as a credit that members veterans 15   tax benefit as prescribed by the laws of the state of Iowa. 16   Sec. 95. EXISTING HOMESTEAD CLAIMS. Homestead credit 17   claims approved under chapter 425, subchapter I, prior to and 18   valid on the effective date of this division of this Act shall 19   result in a homestead exemption under chapter 425, subchapter 20   I, as enacted in this division of this Act, without further 21   filing by the claimant. 22   Sec. 96. IMPLEMENTATION. Section 25B.7, subsection 1, 23   shall not apply to the property tax exemption provided in this 24   division of this Act. 25   Sec. 97. APPLICABILITY. This division of this Act applies 26   to assessment years beginning on or after January 1, 2024. 27   DIVISION V   28   ELDERLY PROPERTY TAX CREDIT   29   Sec. 98. Section 425.17, subsection 2, paragraph a, 30   subparagraph (3), Code 2023, is amended to read as follows: 31   (3) A person filing a claim for credit under this subchapter 32   who has attained the age of seventy years on or before December 33   31 of the base year, who has a household income of less than two   34   three hundred fifty percent of the federal poverty level, as 35   -42-   LSB 1461XC (12) 90   md/jh   42/ 71       

  S.F. _____   defined by the most recently revised poverty income guidelines 1   published by the United States department of health and human 2   services, and is domiciled in this state at the time the claim 3   is filed or at the time of the persons death in the case of a 4   claim filed by the executor or administrator of the claimants 5   estate. 6   Sec. 99. Section 425.23, subsection 1, paragraph c, 7   subparagraph (2), Code 2023, is amended to read as follows: 8   (2) The difference between the actual amount of net   9   property taxes due on the homestead during the fiscal year next 10   following the base year minus the actual amount of net   property 11   taxes due on the homestead during the first fiscal year for 12   which the claimant filed a claim for a credit calculated under 13   this paragraph c and for which the property taxes due   on the 14   homestead were calculated on an assessed valuation that was 15   not a partial assessment and if the claimant has filed for the 16   credit calculated under this paragraph c for each of the 17   subsequent fiscal years after the first credit claimed. 18   Sec. 100. Section 425.23, subsection 2, Code 2023, is 19   amended to read as follows: 20   2. a.   The Except as provided in paragraph b , the 21   actual credit for property taxes due shall be determined 22   by subtracting from the tentative credit the amount of the 23   homestead credit under section 425.1 which is allowed as a 24   credit against property taxes due in the fiscal year next 25   following the base year by the claimant or any person of 26   the claimants household. If the subtraction produces a 27   negative amount, there shall be no credit but no refund shall 28   be required. The actual reimbursement for rent constituting 29   property taxes paid shall be equal to the tentative 30   reimbursement. 31   b.   If the claimants tentative credit is the amount 32   determined under subsection 1, paragraph   c , subparagraph (2), 33   the actual credit amount shall be equal to the tentative credit   34   amount.   35   -43-   LSB 1461XC (12) 90   md/jh   43/ 71                    

  S.F. _____   Sec. 101. EFFECTIVE DATE. The following, being deemed of 1   immediate importance, take effect upon enactment: 2   1. The section of this division of this Act amending section 3   423.23, subsection 1, paragraph c, subparagraph (2). 4   2. The section of this division of this Act amending section 5   423.23, subsection 2. 6   Sec. 102. RETROACTIVE APPLICABILITY. The following apply 7   retroactively to claims under chapter 425, subchapter II, filed 8   on or after January 1, 2022: 9   1. The section of this division of this Act amending section 10   423.25, subsection 1, paragraph c, subparagraph (2). 11   2. The section of this division of this Act amending section 12   423.23, subsection 2. 13   Sec. 103. APPLICABILITY. The section of this division 14   of this Act amending section 425.17, subsection 2, paragraph 15   a, subparagraph (3), applies to claims under chapter 425, 16   subchapter II, filed on or after January 1, 2024. 17   DIVISION VI 18   MILITARY SERVICE PROPERTY TAX EXEMPTION AND CREDIT 19   Sec. 104. Section 25B.7, subsection 2, paragraph c, Code 20   2023, is amended by striking the paragraph. 21   Sec. 105. Section 426A.1A, Code 2023, is amended to read as 22   follows: 23   426A.1A Appropriation. 24   There   For each fiscal year beginning before July 1, 2026, 25   there is appropriated from the general fund of the state the 26   amounts necessary to fund the credits provided under this 27   chapter . 28   Sec. 106. Section 426A.2, Code 2023, is amended to read as 29   follows:   30   426A.2 Military service tax credit. 31   The   For each fiscal year beginning before July 1, 2026, the 32   moneys appropriated under section 426A.1A shall be apportioned 33   each year so as to replace all or a portion of the tax which 34   would be due on property eligible for military service tax 35   -44-   LSB 1461XC (12) 90   md/jh   44/ 71        

  S.F. _____   exemption in the state, if the property were subject to 1   taxation, the amount of the credit to be not more than six 2   dollars and ninety-two cents per thousand dollars of assessed 3   value of property , not to exceed nine hundred forty-five   4   dollars,   which would be subject to the tax, except for the 5   military service tax exemption. 6   Sec. 107. Section 426A.11, subsections 1 and 2, Code 2023, 7   are amended to read as follows: 8   1. The property, not to exceed two thousand seven hundred 9   seventy-eight dollars in taxable value for assessment years   10   beginning before January 1, 2024   , of any veteran, as defined in 11   section 35.1 , of World War I. 12   2. a. The property, not to exceed one thousand eight 13   hundred fifty-two dollars in taxable value for assessment years   14   beginning before January 1, 2024 , of an honorably separated, 15   retired, furloughed to a reserve, placed on inactive status, 16   or discharged veteran, as defined in section 35.1, subsection 17   2 , paragraph a or b . 18   b.   The property, not to exceed two thousand fifty-five 19   dollars in taxable value for the assessment year beginning 20   January 1, 2024, of an honorably separated, retired, furloughed   21   to a reserve, placed on inactive status, or discharged veteran, 22   as defined in section 35.1, subsection 2, paragraph   a or b . 23   c. The property, not to exceed four thousand dollars in 24   taxable value for assessment years beginning on or after 25   January 1, 2025, of an honorably separated, retired, furloughed 26   to a reserve, placed on inactive status, or discharged veteran, 27   as defined in section 35.1, subsection 2, paragraph   a or b . 28   Sec. 108. IMPLEMENTATION. Section 25B.7, subsection 1,   29   shall not apply to the property tax exemption provided in this 30   Act.   31   Sec. 109. APPLICABILITY. This division of this Act applies 32   to assessment years beginning on or after January 1, 2024. 33   DIVISION VII   34   PROPERTY TAX ASSESSMENT LIMITATIONS   35   -45-   LSB 1461XC (12) 90   md/jh   45/ 71                               

  S.F. _____   Sec. 110. Section 441.21, subsections 5, 9, and 10, Code 1   2023, are amended to read as follows: 2   5. a. (1)   For valuations established as of January 1, 3   1979, property valued by the department of revenue pursuant 4   to chapters 428 , 433 , and   437 , and 438 shall be considered as 5   one class of property and shall be assessed as a percentage 6   of its actual value. The percentage shall be determined by 7   the director of revenue in accordance with the provisions of 8   this section . For valuations established as of January 1, 9   1979, the percentage shall be the quotient of the dividend and 10   divisor as defined in this section . The dividend shall be the 11   total actual valuation established for 1978 by the department 12   of revenue, plus ten percent of the amount so determined. 13   The divisor for property valued by the department of revenue 14   pursuant to chapters 428 , 433 , and   437 , and 438 shall be the 15   valuation established for 1978, plus the amount of value added 16   to the total actual value by the revaluation of the property 17   by the department of revenue as of January 1, 1979. For 18   valuations established as of January 1, 1980, property valued 19   by the department of revenue pursuant to chapters 428 , 433 , and   20   437 , and   438 shall be assessed at a percentage of its actual 21   value. The percentage shall be determined by the director of 22   revenue in accordance with the provisions of this section . For 23   valuations established as of January 1, 1980, the percentage 24   shall be the quotient of the dividend and divisor as defined in 25   this section . The dividend shall be the total actual valuation 26   established for 1979 by the department of revenue, plus eight 27   percent of the amount so determined. The divisor for property 28   valued by the department of revenue pursuant to chapters 428 , 29   433 , and   437 , and 438 shall be the valuation established for   30   1979, plus the amount of value added to the total actual 31   value by the revaluation of the property by the department of 32   revenue as of January 1, 1980. For valuations established 33   as of January 1, 1981, and each year thereafter beginning   34   before January 1, 2025 , the percentage of actual value at 35   -46-   LSB 1461XC (12) 90   md/jh   46/ 71                 

  S.F. _____   which property valued by the department of revenue pursuant to 1   chapters 428 , 433 , and   437 , and 438 shall be assessed shall 2   be calculated in accordance with the methods provided herein, 3   except that any references to ten percent in this subsection 4   shall be eight percent. For valuations established on or after   5   January 1, 2013, property valued by the department of revenue   6   pursuant to chapter 434 shall be assessed at a portion of its 7   actual value determined in the same manner at which property 8   assessed as commercial property is assessed under paragraph   b 9   for the same assessment year. For valuations established for 10   the assessment year beginning January 1, 2025, the percentage   11   of actual value at which property valued by the department of 12   revenue pursuant to chapter 438 shall be assessed shall be 13   ninety-five percent. For valuations established for assessment   14   years beginning on or after January 1, 2026, the percentage 15   of actual value at which property valued by the department of 16   revenue pursuant to chapter 438 shall be assessed shall be 17   ninety percent.   18   (2)   (a) For valuations established for the assessment year 19   beginning January 1, 2025, the percentage of actual value at 20   which property valued by the department of revenue pursuant to   21   chapters 428 and 437 shall be assessed shall be ninety-seven 22   and one-half percent.   23   (b) For valuations established for the assessment year 24   beginning January 1, 2026, the percentage of actual value at 25   which property valued by the department of revenue pursuant to 26   chapters 428 and 437 shall be assessed shall be ninety-five 27   percent. 28   (c) For valuations established for the assessment year 29   beginning January 1, 2027, the percentage of actual value at   30   which property valued by the department of revenue pursuant to 31   chapters 428 and 437 shall be assessed shall be ninety-two and   32   one-half percent. 33   (d)   For valuations established for the assessment year 34   beginning January 1, 2028, and each assessment year thereafter, 35   -47-   LSB 1461XC (12) 90   md/jh   47/ 71                                                  

  S.F. _____   the percentage of actual value at which property valued by the 1   department of revenue pursuant to chapters 428 and 437 shall be   2   assessed shall be ninety percent. 3   b. For valuations established on or after January 1, 2013, 4   commercial property, excluding properties referred to in 5   section 427A.1, subsection 9 , shall be assessed at a portion 6   of its actual value, as determined in this paragraph b . For 7   valuations established on or after January 1, 2013, property 8   valued by the department of revenue pursuant to chapter 434   9   shall be assessed at a portion of its actual value determined 10   in the same manner at which property assessed as commercial   11   property is assessed for the same assessment year. 12   (1) For valuations established for the assessment year 13   beginning January 1, 2013, the percentage of actual value 14   as equalized by the department of revenue as provided in 15   section 441.49 at which commercial property shall be assessed 16   shall be ninety-five percent. For valuations established 17   for the assessment year beginning January 1, 2014, and each 18   assessment year thereafter beginning before January 1, 2022, 19   the percentage of actual value as equalized by the department 20   of revenue as provided in section 441.49 at which commercial 21   property shall be assessed shall be ninety percent. 22   (2) For valuations established for the assessment year 23   beginning January 1, 2022, and each assessment year thereafter, 24   the portion of actual value at which each property unit of 25   commercial property shall be assessed shall be the sum of the 26   following: 27   (a) An amount equal to the product of the assessment 28   limitation percentage applicable to residential property under 29   subsection 4 for that assessment year multiplied by the actual 30   value of the property that exceeds zero dollars but does not 31   exceed one hundred fifty thousand dollars. 32   (b) (i)   An For the assessment years beginning January 1, 33   2022, January 1, 2023, and January 1, 2024, an   amount equal 34   to ninety percent of the actual value of the property for 35   -48-   LSB 1461XC (12) 90   md/jh   48/ 71               

  S.F. _____   that assessment year that exceeds one hundred fifty thousand 1   dollars. 2   (ii)   For the assessment year beginning January 1, 2025, 3   an amount equal to eighty-five percent of the actual value of 4   the property for that assessment year that exceeds one hundred   5   fifty thousand dollars.   6   (iii) For the assessment year beginning January 1, 2026, 7   and each assessment year thereafter, an amount equal to eighty 8   percent of the actual value of the property for that assessment   9   year that exceeds one hundred fifty thousand dollars. 10   c. For valuations established on or after January 1, 2013, 11   industrial property, excluding properties referred to in 12   section 427A.1, subsection 9 , shall be assessed at a portion of 13   its actual value, as determined in this paragraph c . 14   (1) For valuations established for the assessment year 15   beginning January 1, 2013, the percentage of actual value 16   as equalized by the department of revenue as provided in 17   section 441.49 at which industrial property shall be assessed 18   shall be ninety-five percent. For valuations established 19   for the assessment year beginning January 1, 2014, and each 20   assessment year thereafter beginning before January 1, 2022, 21   the percentage of actual value as equalized by the department 22   of revenue as provided in section 441.49 at which industrial 23   property shall be assessed shall be ninety percent. 24   (2) For valuations established for the assessment year 25   beginning January 1, 2022, and each assessment year thereafter, 26   the portion of actual value at which each property unit of 27   industrial property shall be assessed shall be the sum of the 28   following: 29   (a) An amount equal to the product of the assessment 30   limitation percentage applicable to residential property under 31   subsection 4 for that assessment year multiplied by the actual 32   value of the property that exceeds zero dollars but does not 33   exceed one hundred fifty thousand dollars. 34   (b) (i)   An For the assessment years beginning January 1, 35   -49-   LSB 1461XC (12) 90   md/jh   49/ 71                 

  S.F. _____   2022, January 1, 2023, and January 1, 2024, an amount equal 1   to ninety percent of the actual value of the property for 2   that assessment year that exceeds one hundred fifty thousand 3   dollars. 4   (ii) For the assessment year beginning January 1, 2025, 5   an amount equal to eighty-five percent of the actual value of   6   the property for that assessment year that exceeds one hundred 7   fifty thousand dollars. 8   (iii)   For the assessment year beginning January 1, 2026, 9   and each assessment year thereafter, an amount equal to eighty 10   percent of the actual value of the property for that assessment   11   year that exceeds one hundred fifty thousand dollars. 12   d. For valuations established for the assessment year 13   beginning January 1, 2019, and each assessment year thereafter, 14   the percentages or portions of actual value at which property 15   is assessed, as determined under this subsection , shall not be 16   applied to the value of wind energy conversion property valued 17   under section 427B.26 the construction of which is approved by 18   the Iowa utilities board on or after July 1, 2018. 19   e. (1) For each fiscal year beginning on or after July 1, 20   2023, there is appropriated from the general fund of the state 21   to the department of revenue the sum of one hundred twenty-five 22   million dollars to be used for payments under this paragraph 23   calculated as a result of the assessment limitations imposed 24   under paragraph b , subparagraph (2), subparagraph division 25   (a), and paragraph c , subparagraph (2), subparagraph division 26   (a). 27   (2) For fiscal years beginning on or after July 1, 2023, 28   each county treasurer shall be paid by the department of 29   revenue an amount calculated under subparagraph (4). If an 30   amount appropriated for the fiscal year is insufficient to make 31   all payments as calculated under subparagraph (4), the director 32   of revenue shall prorate the payments to the county treasurers 33   and shall notify the county auditors of the pro rata percentage 34   on or before September 30. 35   -50-   LSB 1461XC (12) 90   md/jh   50/ 71               

  S.F. _____   (3) On or before July 1 of each fiscal year, the assessor 1   shall report to the county auditor that portion of the total 2   actual value of all commercial property and industrial property 3   in the county that is subject to the assessment limitations 4   imposed under paragraph b , subparagraph (2), subparagraph 5   division (a), and paragraph c , subparagraph (2), subparagraph 6   division (a), for the assessment year used to calculate the 7   taxes due and payable in that fiscal year. 8   (4) On or before September 1 of each fiscal year, the county 9   auditor shall prepare a statement, based on the report received 10   in subparagraph (3) and information transmitted to the county 11   auditor under chapter 434 , listing for each taxing district in 12   the county: 13   (a) The product of the portion of the total actual value 14   of all commercial property, industrial property, and property 15   valued by the department under chapter 434 in the county 16   that is subject to the assessment limitations imposed under 17   paragraph b , subparagraph (2), subparagraph division (a), 18   and paragraph c , subparagraph (2), subparagraph division 19   (a), for the applicable assessment year used to calculate 20   taxes which are due and payable in the applicable fiscal year 21   multiplied by the difference, stated as a percentage, between 22   ninety percent   the percentage under paragraph b , subparagraph 23   (2), subparagraph division (b), for the applicable assessment 24   year and the assessment limitation percentage applicable to 25   residential property under subsection 4 for the applicable 26   assessment year. 27   (b) The tax levy rate per one thousand dollars of assessed 28   value for each taxing district for the applicable fiscal year. 29   (c) The amount of the payment for each county is equal to 30   the amount determined pursuant to subparagraph division (a), 31   multiplied by the tax rate specified in subparagraph division 32   (b), and then divided by one thousand dollars. 33   (5) The county auditor shall certify and forward one copy of 34   the statement described in subparagraph (4) to the department 35   -51-   LSB 1461XC (12) 90   md/jh   51/ 71        

  S.F. _____   of revenue not later than September 1 of each fiscal year. 1   (6) The amounts determined under this paragraph shall 2   be paid by the department to the county treasurers in equal 3   installments in September and March of each year. The county 4   treasurer shall apportion the payments among the eligible 5   taxing districts in the county and the amounts received by each 6   taxing authority shall be treated the same as property taxes 7   paid. 8   f. For the purposes of this subsection , unless the context 9   otherwise requires: 10   (1) Contiguous parcels means any of the following: 11   (a) Parcels that share a common boundary. 12   (b) Parcels within the same building or structure 13   regardless of whether the parcels share a common boundary. 14   (c) Permanent improvements to the land that are situated 15   on one or more parcels of land that are assessed and taxed 16   separately from the permanent improvements if the parcels of 17   land upon which the permanent improvements are situated share 18   a common boundary. 19   (2) Parcel means the same as defined in section 445.1 . 20   Parcel also means that portion of a parcel assigned a 21   classification of commercial property or industrial property 22   pursuant to section 441.21, subsection 14 , paragraph b . 23   (3) Property unit means a parcel or contiguous parcels 24   all of which are located within the same county, with the same 25   property tax classification, are owned by the same person, and 26   are operated by that person for a common use and purpose. 27   9. Not later than November 1, 1979, and November 1 of each 28   subsequent year, the director shall certify to the county 29   auditor of each county the percentages of actual value at 30   which residential property, agricultural property, commercial 31   property, industrial property, property valued by the 32   department of revenue pursuant to chapter 434 , property valued   33   by the department pursuant to chapter 438,   and property valued 34   by the department of revenue pursuant to chapters 428 , 433 , 35   -52-   LSB 1461XC (12) 90   md/jh   52/ 71    

  S.F. _____   and 437 , and 438 in each assessing jurisdiction in the county 1   shall be assessed for taxation, including for assessment years 2   beginning on or after January 1, 2022, the percentages used to 3   apply the assessment limitations under subsection 5 , paragraphs 4   b and c . The county auditor shall proceed to determine the 5   assessed values of agricultural property, residential property, 6   commercial property, industrial property, property valued by 7   the department of revenue pursuant to chapter 434 , property   8   valued by the department pursuant to chapter 438,   and property 9   valued by the department of revenue pursuant to chapters 428 , 10   433 , and   437 , and 438 by applying such percentages to the 11   current actual value of such property, as reported to the 12   county auditor by the assessor, and the assessed values so 13   determined shall be the taxable values of such properties upon 14   which the levy shall be made. 15   10. The percentages of actual value computed by the 16   department of revenue for agricultural property, residential 17   property, commercial property, industrial property, property 18   valued by the department of revenue pursuant to chapter 434 , 19   property valued by the department pursuant to chapter 438,   20   and property valued by the department of revenue pursuant to 21   chapters 428 , 433 , and   437 , and 438 , including for assessment 22   years beginning on or after January 1, 2022, the percentages 23   used to apply the assessment limitations under subsection 5 , 24   paragraphs b and c , and used to determine assessed values of 25   those classes of property do not constitute a rule as defined 26   in section 17A.2, subsection 11 .   27   Sec. 111. EFFECTIVE DATE. This division of this Act takes 28   effect July 1, 2024. 29   DIVISION VIII   30   NATURAL RESOURCES AND OUTDOOR RECREATION TRUST FUND   31   Sec. 112. Section 461.32, subsection 2, paragraph a, Code 32   2023, is amended to read as follows: 33   a. The establishment, restoration, or   enhancement , and 34   management of state parks, state preserves, state forests, 35   -53-   LSB 1461XC (12) 90   md/jh   53/ 71                 

  S.F. _____   wildlife areas, wildlife habitats, native prairies, and 1   wetlands. 2   Sec. 113. Section 461.32, subsection 2, Code 2023, is 3   amended by adding the following new paragraphs: 4   NEW PARAGRAPH . g. The construction, maintenance, or 5   expansion of roads on state-owned land under the jurisdiction 6   of the department of natural resources. 7   NEW PARAGRAPH   . h. Salaries and employee benefits paid to 8   support conservation officer, park ranger, or park manager 9   positions within the department of natural resources. 10   Sec. 114. Section 461.33, subsection 2, paragraph a, Code 11   2023, is amended to read as follows: 12   a. (1)   Soil conservation and watershed protection, 13   including by supporting the division of soil conservation 14   and water quality within the department of agriculture and 15   land stewardship and soil and water conservation district 16   commissioners. The department may provide for the installation   17   establishment   of conservation practices , management practices 18   to control soil erosion on row cropped land,   and watershed 19   protection improvements as provided in chapters 161A , 161C , 20   461A , and 466 . 21   (2)   Each fiscal year, at least ten percent of the moneys 22   allocated to the account shall be used to support the planting   23   and maintenance of cover crops as provided in section 161A.73. 24   Sec. 115. EFFECTIVE DATE. This division of this Act takes 25   effect January 1, 2025. 26   DIVISION IX   27   CHARITABLE CONSERVATION CONTRIBUTION TAX CREDIT   28   Sec. 116. Section 2.48, subsection 3, paragraph e, 29   subparagraph (6), Code 2023, is amended by striking the 30   subparagraph. 31   Sec. 117. Section 422.11W, Code 2023, is amended by adding 32   the following new subsection: 33   NEW SUBSECTION   . 5. Commencing with tax years beginning 34   on or after January 1, 2025, a charitable conservation 35   -54-   LSB 1461XC (12) 90   md/jh   54/ 71               

  S.F. _____   contribution tax credit shall not be claimed against taxes as 1   provided in this section, except for tax credits claimed for 2   qualified real property interests conveyed prior to January 1, 3   2025. 4   Sec. 118. Section 422.33, subsection 25, Code 2023, is 5   amended by striking the subsection and inserting in lieu 6   thereof the following: 7   25. The taxes imposed under this subchapter shall be reduced 8   by a charitable conservation contribution tax credit as allowed 9   under section 422.11W for each tax year the taxpayer has 10   credit, in excess of tax liability, for qualified real property 11   interests conveyed prior to January 1, 2025. 12   Sec. 119. PRESERVATION OF EXISTING RIGHTS. This division 13   of this Act is not intended to and shall not limit, modify, or 14   otherwise adversely affect any amount of tax credit issued, 15   awarded, or allowed prior to January 1, 2025, nor shall it 16   limit, modify, or otherwise adversely affect a taxpayers right 17   to claim or redeem a tax credit issued, awarded, or allowed 18   prior to January 1, 2025, including but not limited to any tax 19   credit carryforward amount. 20   Sec. 120. EFFECTIVE DATE. This division of this Act takes 21   effect January 1, 2025. 22   Sec. 121. APPLICABILITY. This division of this Act applies 23   to tax years beginning on or after January 1, 2025. 24   DIVISION X 25   PROPERTY TAX BENEFITS AND INCENTIVES 26   Sec. 122. NEW SECTION   . 404.3C Assessment agreements  27   commercial property. 28   1. For revitalization areas established under this chapter 29   on or after the effective date of this division of this Act   30   and for first-year exemption applications for property located 31   in a revitalization area in existence on the effective date 32   of this division of this Act filed on or after the effective   33   date of this division of this Act, commercial property shall 34   not receive a tax exemption under this chapter unless the city 35   -55-   LSB 1461XC (12) 90   md/jh   55/ 71   

  S.F. _____   or county, as applicable, and the owner of the qualified real 1   estate enter into a written assessment agreement specifying a 2   minimum actual value until a specified termination date for the 3   duration of the exemption period. 4   2. a. The assessment agreement shall be presented to the 5   appropriate assessor. The assessor shall review the plans and 6   specifications for the improvements to be made to the property 7   and if the minimum actual value contained in the assessment 8   agreement appears to be reasonable, the assessor shall execute 9   the following certification upon the agreement: 10   The undersigned assessor, being legally responsible for the 11   assessment of the above described property upon completion of 12   the improvements to be made on it, certifies that the actual 13   value assigned to that land and improvements upon completion 14   shall not be less than $......... 15   b. The assessment agreement with the certification of 16   the assessor and a copy of this subsection shall be filed in 17   the office of the county recorder of the county where the 18   property is located. Upon completion of the improvements, 19   the assessor shall value the property as required by law, 20   except that the actual value shall not be less than the minimum 21   actual value contained in the assessment agreement. This 22   subsection does not prohibit the assessor from assigning a 23   higher actual value to the property or prohibit the owner 24   from seeking administrative or legal remedies to reduce the 25   actual value assigned except that the actual value shall not 26   be reduced below the minimum actual value contained in the   27   assessment agreement. An assessor, county auditor, board of 28   review, director of revenue, or court of this state shall not   29   reduce or order the reduction of the actual value below the   30   minimum actual value in the agreement during the term of the 31   agreement regardless of the actual value which may result from 32   the incomplete construction of improvements, destruction or 33   diminution by any cause, insured or uninsured, except in the 34   case of acquisition or reacquisition of the property by a 35   -56-   LSB 1461XC (12) 90   md/jh   56/ 71  

  S.F. _____   public entity. Recording of an assessment agreement complying 1   with this subsection constitutes notice of the assessment 2   agreement to a subsequent purchaser or encumbrancer of the land 3   or any part of it, whether voluntary or involuntary, and is 4   binding upon a subsequent purchaser or encumbrancer. 5   Sec. 123. NEW SECTION   . 404.3D Exemptions for residential 6   property. 7   For revitalization areas established under this chapter on 8   or after the effective date of this division of this Act and 9   for first-year exemption applications for property located in a 10   revitalization area in existence on the effective date of this 11   division of this Act filed on or after the effective date of 12   this division of this Act, an exemption otherwise authorized 13   under this chapter shall not be authorized for or approved by a 14   city or county, as applicable, for property that is residential 15   property. 16   Sec. 124. EFFECTIVE DATE. This division of this Act takes 17   effect July 1, 2024. 18   DIVISION XI 19   TAX INCREMENT FINANCING 20   Sec. 125. Section 403.19, subsection 2, paragraph a, Code 21   2023, is amended to read as follows: 22   a. That portion of the taxes each year in excess of such 23   amount shall be allocated to and when collected be paid into 24   a special fund of the municipality to pay the principal of 25   and interest on loans, moneys advanced to, or indebtedness, 26   whether funded, refunded, assumed, or otherwise, including 27   bonds issued under the authority of section 403.9, subsection 28   1 , incurred by the municipality to finance or refinance, in 29   whole or in part, an urban renewal project within the area, 30   and to provide assistance for low and moderate income family 31   housing as provided in section 403.22 . However, except 32   as provided in paragraph b , taxes for the regular and 33   voter-approved physical plant and equipment levy of a school 34   district imposed pursuant to section 298.2 and taxes for the 35   -57-   LSB 1461XC (12) 90   md/jh   57/ 71   

  S.F. _____   instructional support program of a school district imposed 1   pursuant to section 257.19 , taxes for the payment of bonds 2   and interest of each taxing district, and taxes imposed under 3   section 346.27, subsection 22 , related to joint county-city 4   buildings shall be collected against all taxable property 5   within the taxing district without limitation by the provisions 6   of this subsection . Additionally, for property taxes due and   7   payable in fiscal years beginning on or after July 1, 2025, 8   if the portion of the urban renewal area that is subject to a   9   division of revenue under this section contains wind energy 10   conversion property that is subject to special valuation under   11   section 427B.26, foundation property taxes of a school district 12   imposed under section 257.3 shall be collected against all 13   taxable property within that portion of the urban renewal area   14   without limitation by the provisions of this subsection and 15   when collected be paid into the fund of the school district 16   into which all other property taxes are paid. 17   DIVISION XII 18   TRANSIT FUNDING 19   Sec. 126. Section 364.2, subsection 4, paragraph f, 20   subparagraph (1), subparagraph division (b), Code 2023, is 21   amended to read as follows: 22   (b) For franchise fees assessed and collected during fiscal 23   years beginning on or after July 1, 2013   2024 , but before 24   July 1, 2030, by a city that is the subject of a judgment, 25   court-approved settlement, or court-approved compromise 26   providing for payment of restitution, a refund, or a return 27   described in   section 384.3A, subsection 3 , paragraph j with 28   a population exceeding two hundred thousand , the rate of the 29   franchise fee shall not exceed seven and one-half percent 30   of gross revenues generated from sales of the franchisee in 31   the city, and franchise fee amounts assessed and collected 32   during such fiscal years   in excess of five percent of gross 33   revenues generated from sales shall be used solely for the 34   purpose specified in section 384.3A, subsection 3 , paragraph 35   -58-   LSB 1461XC (12) 90   md/jh   58/ 71                           

  S.F. _____   j . A city may assess and collect a franchise fee in excess 1   of five percent of gross revenues generated from the sales   2   of the franchisee pursuant to this subparagraph division (b) 3   for a period not to exceed seven consecutive fiscal years 4   once the franchise fee is first imposed at a rate in excess   5   of five percent. An ordinance increasing the franchise fee   6   rate to greater than five percent pursuant to this subparagraph 7   division (b) shall not become effective unless approved at 8   an election. After passage of the ordinance, the council   9   shall submit the proposal at a special election held on a date 10   specified in   section 39.2, subsection 4 , paragraph b . If a 11   majority of those voting on the proposal approves the proposal, 12   the city may proceed as proposed. The complete text of the 13   ordinance shall be included on the ballot and the full text   14   of the ordinance posted for the voters pursuant to section 15   52.25 . All absentee voters shall receive the full text of the 16   ordinance along with the absentee ballot. This subparagraph 17   division (b) is repealed July 1, 2030.   18   Sec. 127. Section 384.3A, subsection 3, paragraph j, Code 19   2023, is amended to read as follows: 20   j. For franchise fees assessed and collected by a city in 21   excess of five percent of gross revenues generated from sales 22   of the franchisee within the city pursuant to section 364.2, 23   subsection 4 , paragraph f , subparagraph (1), subparagraph 24   division (b), during fiscal years beginning on or after July 1, 25   2013   2024 , but before July 1, 2030, the adjustment, renewal, 26   or extension of any part or all of the legal indebtedness of 27   a city, whether evidenced by bonds, warrants, court-approved 28   settlements, court-approved compromises, or judgments, or the 29   funding or refunding of the same, if such legal indebtedness   30   relates to restitution, a refund, or a return ordered by a 31   court of competent jurisdiction for franchise fees assessed   32   and collected by the city before June 20, 2013 solely for the 33   reduction of property tax levies that support the operation and   34   maintenance of a municipal transit system or a regional transit 35   -59-   LSB 1461XC (12) 90   md/jh   59/ 71                                       

  S.F. _____   district . This paragraph j is repealed July 1, 2030. 1   Sec. 128. EFFECTIVE DATE. This division of this Act takes 2   effect July 1, 2024. 3   EXPLANATION 4   The inclusion of this explanation does not constitute agreement with 5   the explanations substance by the members of the general assembly. 6   This bill relates to state and local revenue and finances. 7   DIVISION I  SALES AND USE TAX RATES AND DISTRIBUTION. An 8   amendment to the Iowa Constitution was ratified on November 2, 9   2010, which created a natural resources and outdoor recreation 10   trust fund (fund) and dedicated a portion of state revenues to 11   the fund for the purposes of protecting and enhancing water 12   quality and natural areas in the state including parks, trails, 13   and fish and wildlife habitat, and conserving agricultural 14   soils in the state (Article VII, section 10). The fund is 15   codified in Code section 461.31. Pursuant to the amendment, 16   the amount credited to the fund will be equal to the amount 17   generated by an increase in the state sales tax rate occurring 18   after the effective date of the constitutional amendment, but 19   shall not exceed the amount that a state sales tax rate of 20   0.375 percent would generate. The state sales tax rate has not 21   been increased since the effective date of the constitutional 22   amendment, so no amounts have been credited to the fund. The 23   bill increases the sales tax rate and the use tax rate from 6 24   percent to 7 percent beginning January 1, 2025. In lieu of the 25   local option and sales services tax revenue repealed in another 26   division of the bill, the bill transfers a specified amount of 27   the state sales and use tax revenues collected to the local 28   sales and use tax fund established under Code chapter 423B, 29   for allocation and expenditure in a manner similar to that 30   which was provided for local sales and services tax revenues. 31   However, as provided in another division of the bill, amounts 32   resulting from the increase in the use tax for the period 33   beginning January 1, 2025, through December 31, 2043, are 34   deposited in the local use tax supplement fund to be used 35   -60-   LSB 1461XC (12) 90   md/jh   60/ 71      

  S.F. _____   for purposes of that fund. The amount of sales tax revenues 1   transferred to the local sales and use tax fund under Code 2   chapter 423B for the period beginning January 1, 2025, through 3   December 31, 2027, is an amount equating to a tax of 1.4 4   percent. The amount transferred is then reduced each year by 5   an amount equating to a 0.05 percent tax until January 1, 2030. 6   The amount of sales tax revenues transferred to the local sales 7   and use tax fund under Code chapter 423B beginning January 1, 8   2030, is an amount equating to a tax of 1.25 percent. The bill, 9   as the result of Article VII, section 10, of the Constitution 10   of the State of Iowa, also amends the transfer of sales tax 11   revenues to the secure an advanced vision for education fund in 12   Code section 423.2A(2). 13   DIVISION II  WATER SERVICE TAX. The bill changes the water 14   service tax on the furnishing of water to consumers so that the 15   rate is equal to the rate of the sales tax that is being imposed 16   under Code chapter 423. 17   Currently, one-half of the moneys collected from the water 18   service tax are deposited into the general fund of the state 19   and one-half of the moneys are deposited into the water quality 20   financial assistance fund created in Code section 16.134A. 21   The bill strikes the provision requiring one-half of the 22   water service tax moneys be deposited into the water quality 23   financial assistance fund and requires all moneys generated 24   from the water service tax be deposited into the general fund 25   of the state. 26   The bill also strikes the future repeal of the water service 27   excise tax.   28   The division takes effect January 1, 2025. 29   DIVISION III  LOCAL OPTION TAXES. Code chapter 423B 30   authorizes, following approval at election, the imposition of 31   a local option sales and services tax at a rate not to exceed 32   one percent to be administered similarly to the state sales 33   and services tax and authorizes the imposition of a local 34   vehicle tax. The bill strikes the authorization for the local   35   -61-   LSB 1461XC (12) 90   md/jh   61/ 71  

  S.F. _____   vehicle tax and also strikes the authorization to impose the 1   local option sales and services tax under Code chapter 423B, 2   but instead authorizes cities and counties to expend specified 3   state sales and use tax revenues that are deposited in the 4   local sales and use tax fund following the increase of the 5   state sales and use taxes rates in previous sections of the 6   bill. 7   Under the bill, sales and services tax revenue credited to 8   and deposited in each countys account within the local sales 9   and use tax fund must be expended by each recipient county 10   and city as required by the jurisdictions revenue purpose 11   statement, including a revenue purpose statement approved at 12   election prior to January 1, 2025, and in effect on or set to 13   take effect on or after January 1, 2025, for the use of local 14   option sales and use tax revenue previously collected under 15   Code chapter 423B, or be used to reduce specified property tax 16   levies. 17   The bill also modifies the requirements and permissible uses 18   of funds received under Code chapter 423B. The bill specifies 19   that for a county with a population of 400,000 or more, a 20   revenue purpose statement governing the use of revenues for the 21   unincorporated area of the county approved on or after January 22   1, 2025, shall require the use of 75 percent of such moneys 23   for property tax relief. Additionally, the bill provides that 24   property tax relief includes payments under a Code chapter 25   28E agreement for purposes of a regional transit district if 26   such payments are used to reduce the regional transit district 27   levy. For a city located in whole or in part in a county with 28   a population of 400,000 or more, the use of revenues received 29   under Code chapter 423B for such regional transit district 30   purposes shall not exceed 10 percent of the amount received 31   and for a county with a population of 400,000 or more, for the 32   unincorporated area, shall not exceed 25 percent. 33   The board of supervisors of each county and the city 34   council of each city may adopt by resolution a revenue purpose 35   -62-   LSB 1461XC (12) 90   md/jh   62/ 71  

  S.F. _____   statement for the expenditure of funds received under Code 1   chapter 423B. 2   The revenues transferred to the local sales and use tax fund 3   continue to be allocated to the specific county account for 4   the county in which the tax was collected. Additionally, all 5   cities and counties are eligible to receive the allocation of 6   revenues, not just those that had previously approved the local 7   option tax. 8   As provided in another division of the bill, specified 9   amounts of use tax revenue is transferred to the local use 10   tax supplement fund, as created in the bill. Moneys in the 11   local use tax supplement fund are annually appropriated to the 12   department of revenue to be used for supplement payments to 13   cities and counties. For each year during the period beginning 14   January 1, 2025, through December 31, 2043, each city or county 15   for the unincorporated portion of the county shall receive a 16   local use tax supplement payment equal to the difference, but 17   not less than zero, between the amount of revenue received 18   by the city or county under Code section 423B.7, Code 2023, 19   for the period beginning January 1, 2024, and ending December 20   31, 2024, minus the amount that would have been received by 21   that city or county for that period if all cities and the 22   county were eligible for distributions of such revenues under 23   Code section 423B.7, Code 2023. If moneys in the fund are 24   insufficient to pay all supplement amounts for the year, the 25   director of revenue shall prorate the payment of the supplement 26   payments. The supplement payment is required to be combined 27   with and be used in the same manner and be subject to the same 28   requirements as moneys received by the city or county under 29   Code section 423B.7 for that year. The bill establishes a 30   future repeal of the Code section establishing the supplement 31   payments on January 1, 2044. Moneys in the fund upon the 32   repeal shall be transferred to the appropriate county accounts 33   for the counties from which the tax was paid. 34   Code section 423B.10 allows a city in which a local sales 35   -63-   LSB 1461XC (12) 90   md/jh   63/ 71  

  S.F. _____   and services tax is imposed to, by ordinance and following 1   approval of the board of supervisors, to provide for the use 2   of a designated amount of increased local option sales and 3   services tax revenue for urban renewal purposes. The bill 4   modifies provisions governing this authorization to provide for 5   the use of a specified amount of the applicable increased state 6   sales tax revenues deposited in the local sales and use tax 7   fund in lieu of the increased local option sales and services 8   tax revenue. The bill allows city ordinances providing for the 9   use of certain local option sales and services tax revenues for 10   urban renewal purposes in effect on January 1, 2025, to remain 11   in effect until expiration, amendment, or repeal. 12   The bill also eliminates the authority to impose a local 13   sales and services tax under the quad cities interstate 14   metropolitan authority compact under Code chapter 28A beginning 15   on January 1, 2025. 16   The division takes effect January 1, 2025. 17   DIVISION IV  HOMESTEAD PROPERTY TAX CREDIT. Code chapter 18   425 establishes a homestead property tax credit in an amount 19   equal to the property tax levy on the first $4,850 of actual 20   value. The homestead credit is paid for from the homestead 21   credit fund under Code section 425.1 for which there is an 22   annual appropriation for an amount sufficient to implement the 23   credit. 24   The bill reduces the amount of the homestead credit over a 25   period beginning with the fiscal year beginning July 1, 2025, 26   until the credit is ended in the fiscal year beginning July 27   1, 2028, at which time the remaining moneys in the homestead 28   credit fund are transferred for deposit in the general fund 29   of the state. During the same period, the bill establishes 30   a homestead property tax exemption. For the assessment year 31   beginning January 1, 2024, the exemption amount is $2,500. For 32   the assessment year beginning January 1, 2025, the exemption 33   amount is $5,000. For the assessment year beginning January 1, 34   2026, the exemption amount is $7,500. For the assessment year 35   -64-   LSB 1461XC (12) 90   md/jh   64/ 71  

  S.F. _____   beginning January 1, 2027, and each succeeding assessment year, 1   the exemption amount is $10,000. 2   Code section 25B.7 provides that if a state appropriation 3   made to fund a credit or exemption is not sufficient to fully 4   fund the credit or exemption, the political subdivision shall 5   be required to extend to the taxpayer only that portion of the 6   credit or exemption estimated by the department of revenue to 7   be funded by the state appropriation. The requirement for 8   fully funding and the consequences of not fully funding under 9   Code section 25B.7 applies to the homestead credit under Code 10   chapter 425. The bill strikes the portion of Code section 11   25B.7 that makes the requirement for fully funding and the 12   consequences of not fully funding applicable to the homestead 13   property tax credit and provides that the general requirement 14   of Code section 25B.7 for property tax credits and exemptions 15   on or after January 1, 1997, does not apply to the homestead 16   property tax exemption established in the bill. 17   The bill makes corresponding changes to various other 18   provisions of the Code relating to and referencing the 19   homestead property tax credit. 20   The bill provides that homestead credit claims approved 21   prior to and valid on the effective date of the division shall 22   result in a homestead tax exemption under Code chapter 425, 23   subchapter I, as enacted in the division, without further 24   filing by the claimant. 25   Division IV applies to assessment years beginning on or 26   after January 1, 2024. 27   DIVISION V  ELDERLY PROPERTY TAX CREDIT. Code section   28   425.17, in part, establishes eligibility criteria for the 29   elderly property tax credit. One such category of eligibility 30   is a person who has attained the age of 70 years on or before 31   December 31 of the base year, who has a household income of 32   less than 250 percent of the federal poverty level. The bill 33   changes that income threshold to 300 percent of the federal 34   poverty level for credit claims filed on or after January 1, 35   -65-   LSB 1461XC (12) 90   md/jh   65/ 71  

  S.F. _____   2024. 1   The bill also amends Code section 423.23 to modify part of 2   the calculation for the elderly property tax credit to account 3   for the homestead credit for the property under Code section 4   425.1. The portions of the division amending Code section 5   423.23 take effect upon enactment and apply retroactively to 6   claims for the credit filed on or after January 1, 2022. 7   DIVISION VI  MILITARY SERVICE PROPERTY TAX EXEMPTION AND 8   CREDIT. Division VII relates to the military service property 9   tax exemption and credit. Under current law, veterans of World 10   War I are entitled to a property tax exemption of $2,778 in 11   taxable value and honorably discharged veterans who served 12   during other specific time periods are entitled to a property 13   tax exemption of $1,852 in taxable value. The bill increases 14   the exemption amount for all eligible veterans to $2,055 for 15   the assessment year beginning January 1, 2024, and to $4,000 16   for assessment years beginning on or after January 1, 2025. 17   Under current law, the state provides funding to local 18   governments for the military service property tax exemption 19   and credit up to $6.92 per $1,000 of assessed value of the 20   exempt property. The bill reduces the amount of the credit for 21   the fiscal year beginning July 1, 2025, to $6.92 per $1,000 22   of assessed value of the exempt property, but not to exceed 23   $945 of assessed value and eliminates funding for the credit 24   starting with the fiscal year beginning July 1, 2026. 25   Code section 25B.7 provides that if a state appropriation 26   made to fund a credit or exemption is not sufficient to fully 27   fund the credit or exemption, the political subdivision shall 28   be required to extend to the taxpayer only that portion of the 29   credit or exemption estimated by the department of revenue to 30   be funded by the state appropriation. The requirement for 31   fully funding and the consequences of not fully funding under 32   Code section 25B.7 applies to the military service property 33   tax credit and exemption to the extent of $6.92 per $1,000 34   of assessed value of the exempt property. The bill strikes 35   -66-   LSB 1461XC (12) 90   md/jh   66/ 71  

  S.F. _____   the portion of Code section 25B.7 that makes the requirement 1   for fully funding and the consequences of not fully funding 2   applicable to the military service property tax credit and 3   exemption and provides that the general requirement of Code 4   section 25B.7 for property tax credits and exemptions on or 5   after January 1, 1997, does not apply to the military property 6   tax exemption established in the bill. 7   The division applies to assessment years beginning on or 8   after January 1, 2024. 9   DIVISION VII  PROPERTY TAX ASSESSMENT LIMITATIONS. Code 10   section 441.21 establishes assessment limitations for various 11   classifications of property. The bill reduces the percentage 12   of actual value at which property valued by the department 13   of revenue pursuant to Code chapter 438 (pipelines) shall 14   be assessed by 5 percent each year from 100 percent for the 15   assessment year beginning January 1, 2024, to 90 percent for 16   assessment years beginning on or after January 1, 2025. 17   The bill also reduces the percentage of actual value at 18   which the portion of commercial, industrial, and railway 19   properties that exceeds $150,000 is assessed by 5 percent each 20   year from 90 percent for the assessment year beginning January 21   1, 2024, to 80 percent for assessment years beginning on or 22   after January 1, 2026. Accordingly, the bill makes a change 23   to the payments made to local governments under Code section 24   441.21(5)(e) that are in part calculated using the assessment 25   limitation applied to commercial and industrial property. 26   2018 Iowa Acts, chapter 1158, changed the assessment of 27   telephone and telegraph company property under Code chapter 28   433. Code chapter 433 applies to the assessment and taxation 29   of telephone and telegraph company property for assessment 30   years beginning before January 1, 2022. Starting with the 31   assessment year beginning January 1, 2022, such property is 32   assessed locally in the same manner as commercial property. 33   References to Code chapter 433 are not included in the 34   applicable Code section as amended in the bill for assessment 35   -67-   LSB 1461XC (12) 90   md/jh   67/ 71  

  S.F. _____   years beginning on or after January 1, 2025. 1   This division of the bill takes effect July 1, 2024. 2   DIVISION VIII  NATURAL RESOURCES AND OUTDOOR RECREATION 3   TRUST FUND. The bill amends provisions in Code chapter 461 4   which would implement an amendment to the Constitution of the 5   State of Iowa as ratified on November 2, 2010, as directed in 6   the Iowa Constitution (see Code section 461.3; and Article VII, 7   section 10 of the codified Iowa Constitution). 8   CONSTITUTIONAL AMENDMENT. The amendment dedicates a 9   portion of state revenue annually generated from the states 10   sales tax to protect and enhance water quality and natural 11   areas in this state, including parks, trails, and fish and 12   wildlife habitats, and conserve agricultural soils in this 13   state. The amendment creates a natural resources and outdoor 14   recreation trust fund (fund) within the state treasury. The 15   fund is credited with an amount equal to the amount annually 16   generated by a sales tax rate of three-eighths of 1 percent. 17   However, no revenue is credited to the fund until the tax rate 18   existing on the effective date of the amendment is increased. 19   After the effective date of any such increase, which another 20   division of the bill provides, the fund will be credited with 21   an amount equal to the amount generated by the increase up to 22   the three-eighths of 1 percent limit. 23   BILLS PROVISIONS. Code chapter 461 creates the statutory 24   version of the fund and provides for the distributions of 25   revenue from the fund to various accounts used to support 26   various initiatives to be carried out by state agencies 27   including the department of natural resources (DNR) and 28   department of agriculture and land stewardship (DALS). 29   Twenty-three percent of moneys credited to the fund are 30   allocated to a natural resources account administered by DNR 31   to support initiatives related to state lands, wildlife, 32   recreation, natural habitat, rivers and streams, and education. 33   The bill provides that moneys in the account are to be used 34   (1) for the construction, maintenance, or expansion of roads 35   -68-   LSB 1461XC (12) 90   md/jh   68/ 71  

  S.F. _____   on state-owned land under DNRs jurisdiction, and (2) to 1   support salaries and benefits paid to conservation officers, 2   park rangers, or park managers (amended Code section 461.32). 3   Twenty percent of moneys credited to the fund are allocated 4   to the soil conservation and water protection account to 5   support soil conservation practices, the conservation of 6   highly erodible land, and soil conservation or crop management 7   practices used in biomass production. The bill expressly 8   provides that for each fiscal year, at least 10 percent of 9   moneys in the account must be used to support the planting and 10   maintenance of cover crops by landowners (amended Code section 11   461.33; referring to voluntary cost-share projects administered 12   under Code section 161A.73). 13   EFFECTIVE DATE. The division of the bill takes effect 14   January 1, 2025. 15   DIVISION IX  CHARITABLE CONSERVATION CONTRIBUTION 16   TAX CREDIT. The bill prohibits a charitable conservation 17   contribution tax credit from being claimed against the 18   individual or corporate income tax, except for qualified real 19   property interests conveyed prior to January 1, 2025. The bill 20   allows the credit in excess of tax liability to carry forward 21   for qualified real property interests conveyed prior to January 22   1, 2025. The bill preserves existing rights and is intended to 23   not limit, modify, or otherwise adversely affect any amount of 24   the tax credit issued, awarded, or allowed prior to the repeal 25   date of any tax credit. The division takes effect January 1, 26   2025, and applies to tax years beginning on or after that date. 27   DIVISION X  PROPERTY TAX BENEFITS AND INCENTIVES. The bill   28   amends Code chapter 404 (urban revitalization areas) to provide 29   that for revitalization areas established on or after the 30   effective date of the division and for first-year property tax 31   exemption applications for property located in a revitalization 32   area in existence on the effective date of the division filed   33   on or after the effective date of the division, commercial   34   property shall not receive a tax exemption under Code chapter 35   -69-   LSB 1461XC (12) 90   md/jh   69/ 71  

  S.F. _____   404 unless the city or county, as applicable, and the owner 1   of the qualified real estate enter into a written assessment 2   agreement specifying a minimum actual value until a specified 3   termination date for the duration of the exemption period. 4   The bill also establishes limitations on exemptions for 5   residential property within revitalization areas. For 6   revitalization areas established on or after the effective date 7   of the division and for first-year exemption applications for 8   property located in a revitalization area in existence on the 9   effective date of the division filed on or after the effective 10   date of the division, an exemption otherwise authorized under 11   Code chapter 404 shall not be authorized for or approved by a 12   city or county, as applicable, for property that is residential 13   property. 14   Division X of the bill takes effect July 1, 2024. 15   DIVISION XI  TAX INCREMENT FINANCING. Code section 403.19 16   authorizes municipalities to provide by ordinance for the 17   division of property tax revenue (tax increment financing) 18   collected against property located within an urban renewal 19   area. The bill provides that for property taxes due and 20   payable in fiscal years beginning on or after July 1, 2025, 21   if the portion of the urban renewal area that is subject 22   to a division of property tax revenue contains wind energy 23   conversion property that is subject to special valuation under 24   Code section 427B.26, foundation property taxes of a school 25   district imposed under Code section 257.3 in that portion of 26   the urban renewal area shall not be subject to the division of 27   property tax revenue and shall instead be paid to the school 28   district. 29   DIVISION XII  TRANSIT FUNDING. Cities may grant various 30   types of franchises for specified services under Code section 31   362.4 and may generally impose a franchise fee based upon 32   a percentage of gross revenues generated from sales of the 33   franchisee within the city not to exceed 5 percent. An 34   exception allowing for a franchise fee up to 7.5 percent exists 35   -70-   LSB 1461XC (12) 90   md/jh   70/ 71  

  S.F. _____   in specified circumstances for a period of fiscal years ending 1   July 1, 2030, if approved at election. The bill strikes 2   the provisions providing for that exception and establishes 3   conditions under which a city with a population that exceeds 4   200,000 may impose a franchise fee of up to 7.5 percent for 5   fiscal years beginning on or after July 1, 2024. The bill 6   requires that franchise fee amounts collected during such 7   fiscal years in excess of 5 percent of gross revenues generated 8   from sales shall be used solely for the reduction of property 9   tax levies used to support the operation and maintenance of a 10   municipal transit system or a regional transit district. 11   The division of the bill takes effect July 1, 2024. 12   -71-   LSB 1461XC (12) 90   md/jh   71/ 71