Senate Study Bill 1218 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON DAWSON) A BILL FOR An Act relating to local government property taxes, financial 1 authority, operations, and budgets, modifying certain 2 transit funding, property tax credits and exemptions, and 3 appropriations, requiring certain information related 4 to property taxation to be provided to property owners 5 and taxpayers, modifying provisions relating to fees for 6 drivers licenses and nonoperators identification cards, 7 modifying provisions relating to certain writing fees, 8 making penalties applicable, and including effective date, 9 retroactive applicability, and applicability provisions. 10 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 11 TLSB 2550XC (7) 90 md/jh
S.F. _____ DIVISION I 1 COUNTY PROPERTY TAXES AND BUDGETS 2 Section 1. Section 331.301, subsection 10, paragraph e, 3 subparagraph (1), Code 2023, is amended to read as follows: 4 (1) (a) The board must follow substantially the 5 authorization procedures of section 331.443 to authorize 6 a lease or lease-purchase contract for personal property 7 which is payable from the general fund. The board must 8 follow substantially the authorization procedures of section 9 331.443 to authorize a lease or lease-purchase contract for 10 real property which is payable from the general fund if the 11 principal amount of the lease-purchase contract does not exceed 12 the following limits: 13 (i) Four Five hundred twenty thousand dollars in a county 14 having a population of twenty-five thousand or less. 15 (ii) Five Six hundred fifty thousand dollars in a county 16 having a population of more than twenty-five thousand but not 17 more than fifty thousand. 18 (iii) Six Seven hundred eighty thousand dollars in a county 19 having a population of more than fifty thousand but not more 20 than one hundred thousand. 21 (iv) Eight hundred One million forty thousand dollars in a 22 county having a population of more than one hundred thousand 23 but not more than two hundred thousand. 24 (v) One million three hundred thousand dollars in a county 25 having a population of more than two hundred thousand. 26 (b) However, if the principal amount of a lease or 27 lease-purchase contract pursuant to this subparagraph (1) is 28 less than twenty-five thirty-two thousand five hundred dollars, 29 the board may authorize the lease or lease-purchase contract 30 without following the authorization procedures of section 31 331.443 . 32 Sec. 2. Section 331.402, subsection 3, paragraph d, 33 subparagraph (1), subparagraph divisions (a), (b), (c), (d), 34 and (e), Code 2023, are amended to read as follows: 35 -1- LSB 2550XC (7) 90 md/jh 1/ 75
S.F. _____ (a) Four Five hundred twenty thousand dollars in a county 1 having a population of twenty-five thousand or less. 2 (b) Five Six hundred fifty thousand dollars in a county 3 having a population of more than twenty-five thousand but not 4 more than fifty thousand. 5 (c) Six Seven hundred eighty thousand dollars in a county 6 having a population of more than fifty thousand but not more 7 than one hundred thousand. 8 (d) Eight hundred One million forty thousand dollars in a 9 county having a population of more than one hundred thousand 10 but not more than two hundred thousand. 11 (e) One million three hundred thousand dollars in a county 12 having a population of more than two hundred thousand. 13 Sec. 3. Section 331.403, subsection 1, Code 2023, is amended 14 to read as follows: 15 1. Not later than December 1 of each year on forms and 16 pursuant to instructions prescribed by the department of 17 management, a county shall prepare an annual financial report 18 showing for each county fund the financial condition as of 19 June 30 and the results of operations for the year then ended. 20 Copies of the report shall be maintained as a public record at 21 the auditors office and shall be filed with the director of 22 the department of management and with the auditor of state by 23 December 1. A summary of the report, in a form prescribed by 24 the director, shall be published by each county not later than 25 December 1 of each year in one or more newspapers which meet 26 the requirements of section 618.14 . Beginning with the annual 27 financial report filed by December 1, 2024, each report shall 28 include a list of bonds, notes, or other obligations issued by 29 the county during the preceding fiscal year payable from any 30 source, including the amount of the issuance, the project or 31 purpose of the issuance, whether the issuance was approved 32 at election, eligible to be subject to a petition for an 33 election, or was exempt from approval at election as the result 34 of statutory exclusions based on population of the county or 35 -2- LSB 2550XC (7) 90 md/jh 2/ 75
S.F. _____ amount of the issuance, and identification of issuances from 1 the fiscal year or prior fiscal years related to the same 2 project or purpose. 3 Sec. 4. Section 331.422, unnumbered paragraph 1, Code 2023, 4 is amended to read as follows: 5 Subject to this section and sections 331.423 through 331.426 6 331.425 or as otherwise provided by state law, the board of 7 each county shall certify property taxes annually at its March 8 session to be levied for county purposes as follows: 9 Sec. 5. Section 331.423, Code 2023, is amended to read as 10 follows: 11 331.423 Basic levies maximums adjustments . 12 Annually, the board may certify basic levies, subject to the 13 following limits: 14 1. For general county services , : 15 a. For fiscal years beginning before July 1, 2024, three 16 dollars and fifty cents per thousand dollars of the assessed 17 value of all taxable property in the county. 18 b. For the fiscal year beginning July 1, 2024, a levy rate 19 per thousand dollars of taxable value equal to the sum of three 20 dollars and fifty cents plus the sum of the amount per thousand 21 dollars of taxable value levied for general county services 22 under section 331.426, Code 2023, for the fiscal year beginning 23 July 1, 2023. 24 c. (1) For each fiscal year beginning on or after July 1, 25 2025, subject to paragraph d , the greater of three dollars 26 and fifty cents per thousand dollars of assessed value used to 27 calculate taxes for the budget year and the amount determined 28 under paragraph b , as adjusted under subparagraph (2), if 29 applicable. 30 (2) If the total assessed value used to calculate taxes 31 for general county services for the budget year exceeds one 32 hundred three and one-fourth percent of the total assessed 33 value used to calculate taxes for the current fiscal year, the 34 levy rate per thousand dollars determined under paragraph b , 35 -3- LSB 2550XC (7) 90 md/jh 3/ 75
S.F. _____ as previously adjusted under this subparagraph, if applicable, 1 shall be reduced to a rate per one thousand dollars of assessed 2 value that is equal to one thousand multiplied by the quotient 3 of the current fiscal years actual property tax dollars 4 certified for levy under this subsection 1 divided by one 5 hundred three and one-fourth percent of the total assessed 6 value used to calculate taxes for the current fiscal year. 7 d. In addition to the limitation under paragraph c , 8 for fiscal years beginning on or after July 1, 2025, if the 9 countys actual levy rate imposed under this subsection for the 10 current fiscal year is three dollars and fifty cents or less 11 per thousand dollars of assessed value and the total assessed 12 value used to calculate taxes for the budget year exceeds one 13 hundred two and one-half percent of the total assessed value 14 used to calculate taxes for the current fiscal year, the levy 15 rate imposed under this subsection for the budget year shall 16 not exceed a rate per one thousand dollars of assessed value 17 that is equal to one thousand multiplied by the quotient of the 18 current fiscal years actual property tax dollars certified for 19 levy under this subsection 1 divided by one hundred two and 20 one-half percent of the total assessed value used to calculate 21 taxes for the current fiscal year. 22 2. For rural county services , : 23 a. For fiscal years beginning before July 1, 2024, three 24 dollars and ninety-five cents per thousand dollars of the 25 assessed value of taxable property in the county outside of 26 incorporated city areas. 27 b. For the fiscal year beginning July 1, 2024, a levy rate 28 per thousand dollars of taxable value equal to the sum of three 29 dollars and ninety-five cents plus the sum of the amount per 30 thousand dollars of taxable value levied for rural county 31 services under section 331.426, Code 2023, for the fiscal year 32 beginning July 1, 2023. 33 c. (1) For each fiscal year beginning on or after July 1, 34 2025, subject to paragraph d , the greater of three dollars 35 -4- LSB 2550XC (7) 90 md/jh 4/ 75
S.F. _____ and ninety-five cents per thousand dollars of assessed value 1 used to calculate taxes for the budget year and the amount 2 determined under paragraph b , as adjusted under subparagraph 3 (2), if applicable. 4 (2) If the total assessed value used to calculate taxes for 5 rural county services under this subsection for the budget year 6 exceeds one hundred three and one-fourth percent of the total 7 assessed value used to calculate taxes for the current fiscal 8 year, the levy rate per thousand dollars determined under 9 paragraph b , as previously adjusted under this subparagraph, 10 if applicable, shall be reduced to a rate per one thousand 11 dollars of assessed value that is equal to one thousand 12 multiplied by the quotient of the current fiscal years actual 13 property tax dollars certified for levy under this subsection 14 2 divided by one hundred three and one-fourth percent of the 15 total assessed value used to calculate taxes for the current 16 fiscal year. 17 d. In addition to the limitation under paragraph c , 18 for fiscal years beginning on or after July 1, 2025, if the 19 countys actual levy rate imposed under this subsection for 20 the current fiscal year is three dollars and ninety-five cents 21 or less per thousand dollars of assessed value and the total 22 assessed value used to calculate taxes for the budget year 23 exceeds one hundred two and one-half percent of the total 24 assessed value used to calculate taxes for the current fiscal 25 year, the levy rate imposed under this subsection for the 26 budget year shall not exceed a rate per one thousand dollars 27 of assessed value that is equal to one thousand multiplied 28 by the quotient of the current fiscal years actual property 29 tax dollars certified for levy under this subsection 2 divided 30 by one hundred two and one-half percent of the total assessed 31 value used to calculate taxes for the current fiscal year. 32 3. For purposes of this section: 33 a. Budget year is the fiscal year beginning during the 34 calendar year in which a budget is certified. 35 -5- LSB 2550XC (7) 90 md/jh 5/ 75
S.F. _____ b. Current fiscal year is the fiscal year ending during 1 the calendar year in which a budget for the budget year is 2 certified. 3 Sec. 6. Section 331.425, unnumbered paragraph 1, Code 2023, 4 is amended to read as follows: 5 The board may certify an addition to a levy in excess 6 of the amounts otherwise permitted under sections 331.423 , 7 and 331.424 , and 331.426 if the proposition to certify an 8 addition to a levy has been submitted at a special levy 9 election and received a favorable majority of the votes cast 10 on the proposition. A special levy election is subject to the 11 following: 12 Sec. 7. Section 331.425, Code 2023, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 6. a. If the addition to a levy approved 15 under this section is due to unusual circumstances resulting 16 from the following, the duration of such approval at election 17 shall not exceed the following period of years: 18 (1) Unusual problems relating to major new functions 19 required by state law, three years. 20 (2) Unusual need for a new program which will provide 21 substantial benefit to county residents, if the county 22 establishes the need and the amount of necessary increased 23 cost, one year. 24 b. For an election to approve an addition to a levy for a 25 reason specified in paragraph a or as the result of a natural 26 disaster, the ballot shall include a statement of the major 27 reasons for the difference between the proposed basic tax rate 28 and the maximum basic tax rate, including a description of the 29 major new functions required by state law and the specific 30 new costs to the county to implement the new functions, a 31 description of the new program that will provide substantial 32 benefits to county residents and specific new costs to the 33 county for the program, or the conditions and damage resulting 34 from the natural disaster that the county must remedy. 35 -6- LSB 2550XC (7) 90 md/jh 6/ 75
S.F. _____ Sec. 8. Section 331.434, unnumbered paragraph 1, Code 2023, 1 is amended to read as follows: 2 Annually, the board of each county, subject to section 3 331.403, subsection 4 , sections 331.423 through 331.426 4 331.425 , section 331.433A , and other applicable state law, 5 shall prepare and adopt a budget, certify taxes, and provide 6 appropriations as follows: 7 Sec. 9. Section 331.435, subsection 1, Code 2023, is amended 8 to read as follows: 9 1. The board may amend the adopted county budget, subject to 10 sections 331.423 through 331.426 331.425 and other applicable 11 state law, to permit increases in any class of proposed 12 expenditures contained in the budget summary published under 13 section 331.434, subsection 3 . 14 Sec. 10. Section 331.441, subsection 2, paragraph b, 15 subparagraph (5), subparagraph divisions (a), (b), (c), (d), 16 and (e), Code 2023, are amended to read as follows: 17 (a) Six Seven hundred eighty thousand dollars in a county 18 having a population of twenty-five thousand or less. 19 (b) Seven Nine hundred fifty ten thousand dollars in a 20 county having a population of more than twenty-five thousand 21 but not more than fifty thousand. 22 (c) Nine One million one hundred seventy thousand dollars in 23 a county having a population of more than fifty thousand but 24 not more than one hundred thousand. 25 (d) One million two five hundred sixty thousand dollars in 26 a county having a population of more than one hundred thousand 27 but not more than two hundred thousand. 28 (e) One million five nine hundred fifty thousand dollars in 29 a county having a population of more than two hundred thousand. 30 Sec. 11. Section 331.441, subsection 2, paragraph c, 31 subparagraph (11), Code 2023, is amended by striking the 32 subparagraph. 33 Sec. 12. Section 331.442, subsection 2, paragraph a, Code 34 2023, is amended to read as follows: 35 -7- LSB 2550XC (7) 90 md/jh 7/ 75
S.F. _____ a. The board shall publish notice of the proposal to issue 1 the bonds, including a statement of the amount and purpose 2 of the bonds , and a statement of the estimated cost of the 3 project for which the bonds are to be issued , and an estimate 4 of the annual increase in property taxes as the result of 5 the bond issuance on a residential property with an actual 6 value of one hundred thousand dollars . The notice shall be 7 published as provided in section 331.305 with the minutes of 8 the meeting at which the board adopts a resolution to call a 9 county special election to vote upon the question of issuing 10 the bonds. The cost of the project, as published in the notice 11 pursuant to this paragraph, is an estimate and is not intended 12 to be binding on the board in later proceedings related to the 13 project. 14 Sec. 13. Section 331.442, subsection 5, paragraph a, 15 subparagraphs (1), (2), and (3), Code 2023, are amended to read 16 as follows: 17 (1) In counties having a population of twenty thousand or 18 less, in an amount of not more than one hundred thirty thousand 19 dollars. 20 (2) In counties having a population of over twenty thousand 21 and not over fifty thousand, in an amount of not more than two 22 hundred sixty thousand dollars. 23 (3) In counties having a population of over fifty thousand, 24 in an amount of not more than three hundred ninety thousand 25 dollars. 26 Sec. 14. Section 331.443, subsection 2, Code 2023, is 27 amended to read as follows: 28 2. Before the board may institute proceedings for the 29 issuance of bonds for an essential county purpose, a notice 30 of the proposed action, including a statement of the amount 31 and purposes of the bonds, an estimate of the annual increase 32 in property taxes as the result of the bond issuance on a 33 residential property with an actual value of one hundred 34 thousand dollars, and the time and place of the meeting at 35 -8- LSB 2550XC (7) 90 md/jh 8/ 75
S.F. _____ which the board proposes to take action for the issuance of the 1 bonds, shall be published as provided in section 331.305 . At 2 the meeting, the board shall receive oral or written objections 3 from any resident or property owner of the county. After 4 all objections have been received and considered, the board, 5 at that meeting or a date to which it is adjourned, may take 6 additional action for the issuance of the bonds or abandon the 7 proposal to issue the bonds. Any resident or property owner 8 of the county may appeal the decision of the board to take 9 additional action to the district court of the county, within 10 fifteen days after the additional action is taken, but the 11 additional action of the board is final and conclusive unless 12 the court finds that the board exceeded its authority. The 13 provisions of this subsection with respect to notice, hearing, 14 and appeal, are in lieu of any other law. 15 Sec. 15. REPEAL. Section 331.426, Code 2023, is repealed. 16 Sec. 16. EFFECTIVE DATE. This division of this Act takes 17 effect July 1, 2024. 18 Sec. 17. APPLICABILITY. This division of this Act applies 19 to taxes and budgets for fiscal years beginning on or after 20 July 1, 2024. 21 DIVISION II 22 CITY PROPERTY TAXES AND BUDGETS 23 Sec. 18. Section 24.48, subsection 5, Code 2023, is amended 24 by adding the following new paragraph: 25 NEW PARAGRAPH . c. For budgets for fiscal years beginning on 26 or after July 1, 2024, if the political subdivision is a city, 27 a suspension of the statutory property tax levy limitations 28 under this section shall only be approved by the state appeal 29 board in the event of a natural disaster or under the reasons 30 specified in subsection 1, paragraph c or f . 31 Sec. 19. Section 28M.5, subsection 1, Code 2023, is amended 32 to read as follows: 33 1. The commission, with the approval of the board of 34 supervisors of participating counties and the city council 35 -9- LSB 2550XC (7) 90 md/jh 9/ 75
S.F. _____ of participating cities in the chapter 28E agreement, may 1 levy annually a tax not to exceed ninety-five cents per 2 thousand dollars of the assessed value of all taxable property 3 in a regional transit district to the extent provided in 4 this section . The chapter 28E agreement may authorize the 5 commission to levy the tax at different rates within the 6 participating cities and counties in amounts sufficient to meet 7 the revenue responsibilities of such cities and counties as 8 allocated in the budget adopted by the commission. However, 9 for a city participating in a regional transit district, the 10 total of all the tax levies imposed in the city pursuant 11 to section 384.12, subsection 10 1 , and this section shall 12 not exceed the aggregate of ninety-five cents per thousand 13 dollars of the assessed value of all taxable property in the 14 participating city. 15 Sec. 20. Section 37.8, Code 2023, is amended to read as 16 follows: 17 37.8 Levy for Cost of development, operation, and 18 maintenance. 19 For the development, operation, and maintenance of a 20 building or monument constructed, purchased, or donated under 21 this chapter , a city may levy a tax not to exceed eighty-one 22 cents per thousand dollars of assessed value on all the taxable 23 property within the city, as provided in section 384.12, 24 subsection 2 utilize taxes levied under section 384.1 . 25 Sec. 21. Section 384.1, Code 2023, is amended to read as 26 follows: 27 384.1 Taxes certified. 28 1. A city may certify taxes to be levied by the county 29 on all taxable property within the city limits, for all city 30 government purposes. However, the 31 2. a. Notwithstanding subsection 3, the tax levied by 32 a city on tracts of land and improvements thereon used and 33 assessed for agricultural or horticultural purposes, shall 34 not exceed three dollars and three-eighths cents per thousand 35 -10- LSB 2550XC (7) 90 md/jh 10/ 75
S.F. _____ dollars of assessed value in any year. Improvements located 1 on such tracts of land and not used for agricultural or 2 horticultural purposes and all residential dwellings are 3 subject to the same rate of tax levied by the city on all other 4 taxable property within the city. A 5 3. a. For fiscal years beginning before July 1, 2024, a 6 citys tax levy for the general fund shall not exceed eight 7 dollars and ten cents per thousand dollars of taxable assessed 8 value used to calculate taxes in any tax year, except for the 9 levies authorized in section 384.12 . 10 b. For the fiscal year beginning July 1, 2024, a citys 11 tax levy for the general fund, except for levies authorized in 12 section 384.12, shall not exceed the sum of eight dollars and 13 ten cents per thousand dollars of taxable value plus the sum of 14 the following for the city, as applicable: 15 (1) The amount per thousand dollars of taxable value levied 16 by or on behalf of the city under section 384.8, Code 2023, for 17 the fiscal year beginning July 1, 2023. 18 (2) The total amount per thousand dollars of taxable value 19 levied by or on behalf of the city under section 384.12, 20 subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, and 21 20, Code 2023, for the fiscal year beginning July 1, 2023. 22 (3) The amount per thousand dollars of taxable value levied 23 by the city under section 24.48, Code 2023, for the fiscal year 24 beginning July 1, 2023. 25 c. (1) For each fiscal year beginning on or after July 26 1, 2025, subject to paragraph d , a citys tax levy for the 27 general fund, except for levies authorized in section 384.12, 28 shall not exceed in any tax year the greater of eight dollars 29 and ten cents per thousand dollars of assessed value used to 30 calculate taxes for the budget year and the amount determined 31 under paragraph b , as adjusted under subparagraph (2), if 32 applicable. 33 (2) If the total assessed value used to calculate taxes 34 for the budget year exceeds one hundred three and one-fourth 35 -11- LSB 2550XC (7) 90 md/jh 11/ 75
S.F. _____ percent of the total assessed value used to calculate taxes for 1 the current fiscal year, the levy rate per thousand dollars 2 determined under paragraph b , as previously adjusted under 3 this subparagraph, if applicable, shall be reduced to a rate 4 per one thousand dollars of assessed value that is equal to 5 one thousand multiplied by the quotient of the current fiscal 6 years actual property tax dollars certified for levy under 7 this section divided by one hundred three and one-fourth 8 percent of the total assessed value used to calculate taxes for 9 the current fiscal year. 10 d. In addition to the limitation under paragraph c , for 11 fiscal years beginning on or after July 1, 2025, if the citys 12 actual levy rate imposed under this section for the current 13 fiscal year is eight dollars and ten cents or less per thousand 14 dollars of assessed value and the total assessed value used to 15 calculate taxes for the budget year exceeds one hundred two and 16 one-half percent of the total assessed value used to calculate 17 taxes for the current fiscal year, the levy rate imposed under 18 this section for the budget year shall not exceed a rate per 19 one thousand dollars of assessed value that is equal to one 20 thousand multiplied by the quotient of the current fiscal 21 years actual property tax dollars certified for levy under 22 this section divided by one hundred two and one-half percent 23 of the total assessed value used to calculate taxes for the 24 current fiscal year. 25 4. For purposes of this section: 26 a. Budget year is the fiscal year beginning during the 27 calendar year in which a budget is certified. 28 b. Current fiscal year is the fiscal year ending during 29 the calendar year in which a budget for the budget year is 30 certified. 31 Sec. 22. Section 384.12, Code 2023, is amended to read as 32 follows: 33 384.12 Additional taxes. 34 A city may certify, for the general fund levy, taxes which 35 -12- LSB 2550XC (7) 90 md/jh 12/ 75
S.F. _____ are not subject to the limit provided in section 384.1 , and 1 which are in addition to any other moneys the city may wish to 2 spend for such purposes, as follows: 3 1. A tax not to exceed thirteen and one-half cents 4 per thousand dollars of assessed value for the support of 5 instrumental or vocal musical groups, one or more organizations 6 which have tax-exempt status under section 501(c)(3) of 7 the Internal Revenue Code and are organized and operated 8 exclusively for artistic and cultural purposes, or any of these 9 purposes, subject to the following: 10 a. Upon receipt of a petition valid under the provisions of 11 section 362.4 , the council shall submit to the voters at the 12 next regular city election the question of whether a tax shall 13 be levied. 14 b. If a majority approves the levy, it may be imposed. 15 c. The levy can be eliminated by the same procedure of 16 petition and election. 17 d. A tax authorized by an election held prior to the 18 effective date of the city code may be continued until 19 eliminated by the council, or by petition and election. 20 2. A tax not to exceed eighty-one cents per thousand dollars 21 of assessed value for development, operation, and maintenance 22 of a memorial building or monument, subject to the provisions 23 of subsection 1 . 24 3. A tax not to exceed thirteen and one-half cents per 25 thousand dollars of assessed value for support of a symphony 26 orchestra, subject to the provisions of subsection 1 . 27 4. A tax not to exceed twenty-seven cents per thousand 28 dollars of assessed value for the operation of cultural and 29 scientific facilities, subject to the provisions of subsection 30 1 , except that the question may be submitted on the councils 31 own motion. 32 5. A tax to aid in the construction of a county bridge, 33 subject to the provisions of subsection 1 , except that the 34 question must be submitted at a special election. The expense 35 -13- LSB 2550XC (7) 90 md/jh 13/ 75
S.F. _____ of a special election under this subsection must be paid by the 1 county. The notice of the special election must include full 2 details of the proposal, including the location of the proposed 3 bridge, the rate of tax to be levied, and all other conditions. 4 6. A tax to aid a company incorporated under the laws of 5 this state in the construction of a highway or combination 6 bridge across any navigable boundary river of this state, 7 commencing or terminating in the city and suitable for use 8 as highway, or for both highway and railway purposes. This 9 tax levy is subject to the provisions of subsections 1 and 5 . 10 The levy is limited to one dollar and thirty-five cents per 11 thousand dollars of the assessed value of taxable property in 12 the city. The estimated cost of the bridge must be at least 13 ten thousand dollars, and the city aid may not exceed one-half 14 of the estimated cost. The notice of the special election 15 must include the name of the corporation to be aided, and all 16 conditions required of the corporation. Tax moneys received 17 for this purpose may not be paid over by the county treasurer 18 until the city has filed a statement that the corporation has 19 complied with all conditions. 20 7. If a tax has been voted for aid of a bridge under 21 subsection 6 , a further tax may be voted for the purpose of 22 purchasing the bridge, subject to the provisions of subsection 23 1 . The levy under this subsection is limited to three dollars 24 and thirty-seven and one-half cents per thousand dollars of the 25 assessed value of the taxable property in the city, payable in 26 not less than ten annual installments. 27 8. A tax for the purpose of carrying out the terms of a 28 contract for the use of a bridge by a city situated on a river 29 over which a bridge has been built. The tax may not exceed 30 sixty-seven and one-half cents per thousand dollars of assessed 31 value each year. 32 9. A tax for aid to a public transportation company, 33 subject to the procedure provided in subsection 1 , except the 34 question must be submitted at a special election. The levy is 35 -14- LSB 2550XC (7) 90 md/jh 14/ 75
S.F. _____ limited to three and three-eighths cents per thousand dollars 1 of assessed value. In addition to any other conditions the 2 following requirements must be met before moneys received for 3 this purpose may be paid over by the county treasurer: 4 a. The public transportation company shall provide the city 5 with copies of state and federal income tax returns for the 6 five years preceding the year for which payment is contemplated 7 or for such lesser period of time as the company has been in 8 operation. 9 b. The city shall, in any given year, be authorized to pay 10 over only such sums as will yield not to exceed two percent 11 of the public transportation companys investment as the same 12 is valued in its tax depreciation schedule, provided that 13 corporate profits and losses for the five preceding years or 14 for such lesser period of time as the company has been in 15 operation shall not average in excess of a two percent net 16 return. Taxes levied under this subsection may not be used to 17 subsidize losses incurred prior to the election required by 18 this subsection . 19 10. 1. A tax for the operation and maintenance of a 20 municipal transit system or for operation and maintenance of a 21 regional transit district, and for the creation of a reserve 22 fund for the system or district, in an amount not to exceed 23 ninety-five cents per thousand dollars of assessed value each 24 year, when the revenues from the transit system or district are 25 insufficient for such purposes. 26 11. If a city has entered into a lease of a building or 27 complex of buildings to be operated as a civic center, a tax 28 sufficient to pay the installments of rent and for maintenance, 29 insurance and taxes not included in the lease rental payments. 30 12. A tax not to exceed thirteen and one-half cents per 31 thousand dollars of assessed value each year for operating and 32 maintaining a civic center owned by a city. 33 13. A tax not to exceed six and three-fourths cents per 34 thousand dollars of assessed value for planning a sanitary 35 -15- LSB 2550XC (7) 90 md/jh 15/ 75
S.F. _____ disposal project. 1 14. 2. A tax not to exceed twenty-seven cents per thousand 2 dollars of assessed value each year for an aviation authority 3 as provided in section 330A.15 . 4 15. A tax not to exceed six and three-fourths cents per 5 thousand dollars of assessed value each year for a levee 6 improvement fund in special charter cities as provided in 7 section 420.155 . 8 16. A tax not to exceed twenty and one-half cents per 9 thousand dollars of assessed value each year to maintain an 10 institution received by gift or devise, subject to an election 11 as required under subsection 1 . 12 17. 3. A tax to pay the premium costs on tort liability 13 insurance, property insurance, and any other insurance that 14 may be necessary in the operation of the city, the costs of a 15 self-insurance program, the costs of a local government risk 16 pool and amounts payable under any insurance agreements to 17 provide or procure such insurance, self-insurance program, or 18 local government risk pool. 19 18. A tax to fund an emergency medical services district 20 under chapter 357G . 21 19. 4. A tax that exceeds any tax levy limit within this 22 chapter , provided the question has been submitted at a special 23 levy election and received a simple majority of the votes cast 24 on the proposition to authorize the enumerated levy limit to be 25 exceeded for the proposed budget year. 26 a. The election may be held as specified in this subsection 27 if notice is given by the city council, not later than 28 forty-six days before the first Tuesday in March, to the county 29 commissioner of elections that the election is to be held. 30 b. An election under this subsection shall be held on 31 the first Tuesday in March and be conducted by the county 32 commissioner of elections in accordance with the law. 33 c. The ballot question shall be in substantially the 34 following form: 35 -16- LSB 2550XC (7) 90 md/jh 16/ 75
S.F. _____ WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........ ? 1 (Vote for only one of the following choices.) 2 CHANGE LEVY AMOUNT ... 3 Add to the existing levy amount a tax for the purpose of 4 .......... (state purpose of proposed levy) at a rate of ... 5 (rate) which will provide an additional $ .... (amount). 6 KEEP CURRENT LEVY ... 7 Continue under the current maximum rate of ... , providing 8 $ .... (amount). 9 d. The commissioner of elections conducting the election 10 shall notify the city officials and other county auditors where 11 applicable, of the results within two days of the canvass which 12 shall be held on the second day that is not a holiday following 13 the special levy election, and beginning no earlier than 1:00 14 p.m. on that day. 15 e. Notice of the election shall be published twice in 16 accordance with the provisions of section 362.3 , except that 17 the first such notice shall be given at least two weeks before 18 the election. 19 f. The cost of the election shall be borne by the city. 20 g. The election provisions of this subsection shall 21 supersede other provisions for elections only to the extent 22 necessary to comply with the provisions of this subsection . 23 h. The provisions of this subsection apply to all cities, 24 however organized, including special charter cities which may 25 adopt ordinances where necessary to carry out these provisions. 26 i. The council shall certify the citys budget with the tax 27 askings not exceeding the amount approved by the special levy 28 election. 29 20. A tax not to exceed twenty-seven cents per thousand 30 dollars of assessed value for support of a public library, 31 subject to petition and referendum requirements of subsection 32 1 , except that if a majority approves the levy, it shall be 33 imposed. 34 21. 5. A tax for the support of a local emergency 35 -17- LSB 2550XC (7) 90 md/jh 17/ 75
S.F. _____ management commission established pursuant to chapter 29C . 1 Sec. 23. Section 384.22, subsection 1, Code 2023, is amended 2 to read as follows: 3 1. Not later than December 1 of each year, a city shall 4 publish an annual financial report as provided in section 5 362.3 containing a summary for the preceding fiscal year of 6 all collections and receipts, all accounts due the city, and 7 all expenditures, the current public debt of the city, and the 8 legal debt limit of the city for the current fiscal year. The 9 annual financial report shall be prepared on forms and pursuant 10 to instructions prescribed by the auditor of state. Beginning 11 with the annual financial report published by December 1, 2024, 12 each report shall include a list of bonds, notes, or other 13 obligations issued by the city during the preceding fiscal year 14 payable from any source, including the amount of the issuance, 15 the project or purpose of the issuance, whether the issuance 16 was approved at election, eligible to be subject to a petition 17 for an election, or was exempt from approval at election as 18 the result of statutory exclusions based on population of the 19 city or amount of the issuance, and identification of issuances 20 from the fiscal year or prior fiscal years related to the same 21 project or purpose. 22 Sec. 24. Section 384.24, subsection 4, paragraph i, Code 23 2023, is amended by striking the paragraph. 24 Sec. 25. Section 384.24A, subsection 4, paragraph a, 25 subparagraphs (1), (2), and (3), Code 2023, are amended to read 26 as follows: 27 (1) Four Five hundred twenty thousand dollars in a city 28 having a population of five thousand or less. 29 (2) Seven Nine hundred ten thousand dollars in a city having 30 a population of more than five thousand but not more than 31 seventy-five thousand. 32 (3) One million three hundred thousand dollars in a city 33 having a population of more than seventy-five thousand. 34 Sec. 26. Section 384.25, subsection 2, Code 2023, is amended 35 -18- LSB 2550XC (7) 90 md/jh 18/ 75
S.F. _____ to read as follows: 1 2. Before the council may institute proceedings for the 2 issuance of bonds for an essential corporate purpose, a notice 3 of the proposed action, including a statement of the amount 4 and purposes of the bonds, and an estimate of the annual 5 increase in property taxes as the result of the bond issuance 6 on a residential property with an actual value of one hundred 7 thousand dollars, and the time and place of the meeting at 8 which the council proposes to take action for the issuance of 9 the bonds, must be published as provided in section 362.3 . 10 At the meeting, the council shall receive oral or written 11 objections from any resident or property owner of the city. 12 After all objections have been received and considered, the 13 council may, at that meeting or any adjournment thereof, take 14 additional action for the issuance of the bonds or abandon the 15 proposal to issue the bonds. Any resident or property owner 16 of the city may appeal the decision of the council to take 17 additional action to the district court of the county in which 18 any part of the city is located, within fifteen days after the 19 additional action is taken, but the additional action of the 20 council is final and conclusive unless the court finds that 21 the council exceeded its authority. The provisions of this 22 subsection with respect to notice, hearing, and appeal, are in 23 lieu of the provisions contained in chapter 73A , or any other 24 law. 25 Sec. 27. Section 384.26, subsection 2, Code 2023, is amended 26 to read as follows: 27 2. a. The board shall publish notice of the proposal 28 to issue the bonds, including a statement of the amount and 29 purpose of the bonds, a statement of the estimated cost of the 30 project for which the bonds are to be issued, and an estimate 31 of the annual increase in property taxes as the result of 32 the bond issuance on a residential property with an actual 33 value of one hundred thousand dollars. The notice shall be 34 published as provided in section 362.3 with the minutes of 35 -19- LSB 2550XC (7) 90 md/jh 19/ 75
S.F. _____ the meeting at which the council adopts a resolution to call 1 a special election to vote upon the question of issuing the 2 bonds. The cost of the project, as published in the notice 3 pursuant to this paragraph, is an estimate and is not intended 4 to be binding on the board in later proceedings related to the 5 project. 6 b. Before the council may institute proceedings for the 7 issuance of bonds for a general corporate purpose, it shall 8 call a special city election to vote upon the question of 9 issuing the bonds. At the election the proposition must be 10 submitted in the following form: 11 Shall the ............ (insert the name of the city) issue 12 its bonds in an amount not exceeding the amount of $ .... for 13 the purpose of .......... ? 14 Sec. 28. Section 384.26, subsection 5, paragraph a, 15 subparagraphs (1), (2), and (3), Code 2023, are amended to read 16 as follows: 17 (1) In cities having a population of five thousand or less, 18 in an amount of not more than four five hundred twenty thousand 19 dollars. 20 (2) In cities having a population of more than five thousand 21 and not more than seventy-five thousand, in an amount of not 22 more than seven nine hundred ten thousand dollars. 23 (3) In cities having a population in excess of seventy-five 24 thousand, in an amount of not more than one million three 25 hundred thousand dollars. 26 Sec. 29. Section 384.110, Code 2023, is amended to read as 27 follows: 28 384.110 Insurance, self-insurance, and risk pooling funds. 29 A city may credit funds to a fund or funds for the purposes 30 authorized by section 364.4, subsection 5 ; section 384.12, 31 subsection 17 3 ; or section 384.24, subsection 3 , paragraph s . 32 Moneys credited to the fund or funds, and interest earned on 33 such moneys, shall remain in the fund or funds until expended 34 for purposes authorized by section 364.4, subsection 5 ; section 35 -20- LSB 2550XC (7) 90 md/jh 20/ 75
S.F. _____ 384.12, subsection 17 3 ; or section 384.24, subsection 3 , 1 paragraph s . 2 Sec. 30. REPEAL. Section 384.8, Code 2023, is repealed. 3 Sec. 31. EFFECTIVE DATE. This division of this Act takes 4 effect July 1, 2024. 5 Sec. 32. APPLICABILITY. This division of this Act applies 6 to taxes and budgets for fiscal years beginning on or after 7 July 1, 2024. 8 DIVISION III 9 PUBLIC EDUCATION AND RECREATION TAX LEVY 10 Sec. 33. Section 276.1, Code 2023, is amended to read as 11 follows: 12 276.1 Title. 13 This section , sections 276.2 through 276.5 , and sections 14 276.8 through 276.11 276.10 of this chapter shall be known and 15 may be cited as the Iowa Community Education Act . 16 Sec. 34. Section 276.3, unnumbered paragraph 1, Code 2023, 17 is amended to read as follows: 18 As used in sections 276.1 , 276.2 , this section , sections 19 276.4 , 276.5 , and sections 276.8 through 276.11 276.10 , unless 20 the context otherwise requires: 21 Sec. 35. Section 276.10, subsection 1, Code 2023, is amended 22 to read as follows: 23 1. The board of directors of a local school district 24 may establish a community education program for schools in 25 the district and provide for the general supervision of the 26 program. Financial support for the program shall may be 27 provided from funds raised pursuant to chapter 300 received by 28 the school district under chapter 423F and from any private 29 funds and any federal funds made available for the purpose of 30 implementing this chapter . The program which recognizes that 31 the schools belong to the people and which shall be centered 32 in the schools may include but shall not be limited to the use 33 of the school facilities day and night, year round including 34 weekends and regular school vacation periods for educational, 35 -21- LSB 2550XC (7) 90 md/jh 21/ 75
S.F. _____ recreational, cultural, and other community services and 1 programs for all age, ethnic, and socioeconomic groups residing 2 in the community. 3 Sec. 36. Section 278.1, subsection 1, paragraph e, Code 4 2023, is amended to read as follows: 5 e. Direct the transfer of any surplus in the debt service 6 fund, physical plant and equipment levy fund , or other capital 7 project funds , or public education and recreation levy fund to 8 the general fund. 9 Sec. 37. Section 298A.6, Code 2023, is amended to read as 10 follows: 11 298A.6 Public education and recreation levy fund. 12 The public education and recreation levy fund is a special 13 revenue fund. A public education and recreation levy fund 14 must be established in any school corporation which levies 15 levied the tax authorized under section 300.2 , Code 2023, or 16 which receives received revenue from a chapter 28E agreement 17 authorized under section 300.1 , Code 2023 . Moneys available in 18 the fund at the conclusion of the fiscal year beginning July 1, 19 2026, and ending June 30, 2027, shall be expended by the school 20 corporation for the purposes authorized under chapter 300, Code 21 2023. 22 Sec. 38. Section 300.2, Code 2023, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 4. a. A levy under this chapter shall not 25 be approved by the voters on or after the effective date of 26 this section of this division of this Act. 27 b. If the levy has not been discontinued under section 28 300.3, the authorization to impose the levy under this chapter 29 shall terminate July 1, 2027. 30 c. Notwithstanding subsection 2, including a proposition 31 approved at an election held before the effective date of 32 this section of this division of this Act, the rate of a levy 33 imposed by a board of directors under this chapter for the 34 fiscal year beginning July 1, 2026, shall not exceed one-half 35 -22- LSB 2550XC (7) 90 md/jh 22/ 75
S.F. _____ of the levy rate imposed by the board of directors for the 1 fiscal year beginning July 1, 2025. 2 Sec. 39. Section 423F.3, subsection 1, paragraph c, Code 3 2023, is amended by striking the paragraph. 4 Sec. 40. Section 423F.5, subsection 1, Code 2023, is amended 5 to read as follows: 6 1. A school district shall include as part of its financial 7 audit for the budget year beginning July 1, 2007, and for 8 each subsequent budget year the amount received during the 9 year pursuant to chapter 423E or this chapter , as applicable. 10 In addition, the financial audit shall include the amount 11 of bond levies , and physical plant and equipment levy , and 12 public educational and recreational levy reduced as a result 13 of the moneys received under chapter 423E or this chapter , 14 as applicable. The amount of the reductions shall be stated 15 in terms of dollars and cents per one thousand dollars of 16 valuation and in total amount of property tax dollars. Also 17 included shall be an accounting of the amount of moneys 18 received which were spent for infrastructure purposes pursuant 19 to chapter 423E or this chapter , as applicable. 20 Sec. 41. REPEAL. Sections 276.11 and 276.12, Code 2023, 21 are repealed. 22 Sec. 42. REPEAL. Chapter 300, Code 2023, is repealed. 23 Sec. 43. EFFECTIVE DATE. Except as otherwise provided in 24 this division of this Act, this division of this Act takes 25 effect July 1, 2027. 26 Sec. 44. EFFECTIVE DATE. The following, being deemed of 27 immediate importance, takes effect upon enactment: 28 The section of this division of this Act enacting section 29 300.2, subsection 4. 30 Sec. 45. APPLICABILITY. Except for the section of this 31 division of this Act enacting section 300.2, subsection 4, this 32 division of this Act applies to fiscal years beginning on or 33 after July 1, 2027. 34 DIVISION IV 35 -23- LSB 2550XC (7) 90 md/jh 23/ 75
S.F. _____ BRUCELLOSIS AND TUBERCULOSIS ERADICATION FUND LEVY 1 Sec. 46. Section 165.18, subsections 2 and 3, Code 2023, are 2 amended by striking the subsections. 3 Sec. 47. Section 331.512, subsection 1, paragraph e, Code 4 2023, is amended by striking the paragraph. 5 Sec. 48. Section 331.559, subsection 2, Code 2023, is 6 amended by striking the subsection. 7 Sec. 49. EFFECTIVE DATE. This division of this Act takes 8 effect July 1, 2024. 9 Sec. 50. APPLICABILITY. This division of this Act applies 10 to property taxes due and payable in fiscal years beginning on 11 or after July 1, 2024. 12 DIVISION V 13 COUNTY SEATS 14 Sec. 51. Section 331.301, Code 2023, is amended by adding 15 the following new subsection: 16 NEW SUBSECTION . 9A. Pursuant to the general grant of home 17 rule power conferred by the Constitution of the State of Iowa 18 and if not inconsistent with the laws of the general assembly, 19 a county that has designated more than one city to be a county 20 seat may consolidate or reduce the number of county seats by 21 ordinance. 22 Sec. 52. REPEAL. 1848 Iowa Acts, First Extraordinary 23 Session, chapter 52, is repealed. 24 Sec. 53. EFFECTIVE DATE. This division of this Act, being 25 deemed of immediate importance, takes effect upon enactment. 26 DIVISION VI 27 COUNTY SHERIFF FEE REPORT 28 Sec. 54. Section 331.655, subsection 5, Code 2023, is 29 amended by striking the subsection. 30 DIVISION VII 31 HOMESTEAD PROPERTY TAX CREDIT 32 Sec. 55. Section 2.48, subsection 3, paragraph f, 33 subparagraph (1), Code 2023, is amended to read as follows: 34 (1) The homestead tax exemption and credit under chapter 35 -24- LSB 2550XC (7) 90 md/jh 24/ 75
S.F. _____ 425 . 1 Sec. 56. 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 credit . 12 Sec. 57. 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 credit . 23 Sec. 58. Section 331.401, subsection 1, paragraphs e and f, 24 Code 2023, are amended to read as follows: 25 e. Adopt resolutions authorizing the county assessor 26 to provide forms for homestead tax exemption and credit 27 claimants as provided in section 425.2 and military service tax 28 exemptions as provided in section 426A.14 . 29 f. Examine and allow or disallow claims for homestead tax 30 exemption and credit in accordance with section 425.3 and 31 claims for military service tax exemption in accordance with 32 chapter 426A . The board, by a single resolution, may allow or 33 disallow the exemptions recommended by the assessor. 34 Sec. 59. Section 331.512, subsection 3, Code 2023, is 35 -25- LSB 2550XC (7) 90 md/jh 25/ 75
S.F. _____ amended to read as follows: 1 3. Carry out duties relating to the homestead tax exemption 2 and credit and agricultural land tax credit as provided in 3 chapters 425 and 426 . 4 Sec. 60. Section 331.559, subsection 12, Code 2023, is 5 amended to read as follows: 6 12. Carry out duties relating to the administration of 7 the homestead tax exemption and credit and other credits as 8 provided in sections 425.4 , 425.5 , 425.7 , 425.9 , 425.10 , and 9 425.25 . 10 Sec. 61. NEW SECTION . 425.1A Homestead tax exemption. 11 1. The following exemptions from taxation shall be allowed 12 in addition to the homestead credit for an owner that has 13 attained the age of sixty-five years by January 1 of the 14 assessment year: 15 a. For the assessment year beginning January 1, 2024, the 16 eligible homestead, not to exceed three thousand two hundred 17 fifty dollars in taxable value. 18 b. For the assessment year beginning January 1, 2025, and 19 each succeeding assessment year, the eligible homestead, not to 20 exceed six thousand five hundred dollars in taxable value. 21 2. Section 25B.7, subsection 1, shall not apply to the 22 property tax exemption provided in this section. 23 Sec. 62. Section 425.2, Code 2023, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 3A. The form for claiming the credit shall 26 also include the ability to claim the exemption under section 27 425.1A for qualified owners. If the claim for the homestead 28 credit is allowed, such allowance shall also include allowance 29 of the homestead exemption if the owner meets the age criteria 30 for the exemption. The homestead exemption shall be allowed 31 for successive years without further filing in the same manner 32 as the homestead credit. 33 Sec. 63. Section 425.3, subsection 4, Code 2023, is amended 34 to read as follows: 35 -26- LSB 2550XC (7) 90 md/jh 26/ 75
S.F. _____ 4. The county auditor shall forward the claims to the board 1 of supervisors. The board shall allow or disallow the claims. 2 If the board disallows a claim, it shall send written notice, 3 by mail, to the claimant at the claimants last known address. 4 The notice shall state the reasons for disallowing the claim 5 for the credit . The board is not required to send notice that 6 a claim is disallowed if the claimant voluntarily withdraws the 7 claim. 8 Sec. 64. Section 425.4, Code 2023, is amended to read as 9 follows: 10 425.4 Certification to treasurer. 11 All claims which have been allowed by the board of 12 supervisors shall be certified on or before August 1, in each 13 year, by the county auditor to the county treasurer, which 14 certificates shall list the total amount of dollars, listed by 15 taxing district in the county, due for homestead tax exemptions 16 and credits claimed and allowed. The county treasurer shall 17 forthwith then certify to the department of revenue the total 18 amount of dollars, listed by taxing district in the county, due 19 for homestead tax exemptions and credits claimed and allowed. 20 Sec. 65. Section 425.6, Code 2023, is amended to read as 21 follows: 22 425.6 Waiver by neglect. 23 If a person fails to file a claim or to have a claim on file 24 with the assessor for the credits provided in this subchapter , 25 the person is deemed to have waived the homestead exemption 26 and credit for the year in which the person failed to file the 27 claim or to have a claim on file with the assessor. 28 Sec. 66. Section 425.7, subsection 3, Code 2023, is amended 29 to read as follows: 30 3. a. If the department of revenue determines that a claim 31 for homestead exemption and credit has been allowed by the 32 board of supervisors which is not justifiable under the law 33 and not substantiated by proper facts, the department may, at 34 any time within thirty-six months from July 1 of the year in 35 -27- LSB 2550XC (7) 90 md/jh 27/ 75
S.F. _____ which the claim is allowed, set aside the allowance. Notice 1 of the disallowance shall be given to the county auditor of 2 the county in which the claim has been improperly granted and 3 a written notice of the disallowance shall also be addressed 4 to the claimant at the claimants last known address. The 5 claimant or board of supervisors may appeal to the director 6 of revenue within thirty days from the date of the notice of 7 disallowance. The director shall grant a hearing and if, upon 8 the hearing, the director determines that the disallowance was 9 incorrect, the director shall set aside the disallowance. The 10 director shall notify the claimant and the board of supervisors 11 of the result of the hearing. The claimant or the board of 12 supervisors may seek judicial review of the action of the 13 director of revenue in accordance with chapter 17A . 14 b. If a claim is disallowed by the department of revenue 15 and not appealed to the director of revenue or appealed to 16 the director of revenue and thereafter upheld upon final 17 resolution, including any judicial review, any amounts of 18 exemptions allowed and credits allowed and paid from the 19 homestead credit fund including the penalty, if any, become a 20 lien upon the property on which the exemption or credit was 21 originally granted, if still in the hands of the claimant, 22 and not in the hands of a bona fide purchaser, and any amount 23 so erroneously paid including the penalty, if any, shall be 24 collected by the county treasurer in the same manner as other 25 taxes and the collections shall be returned to the department 26 of revenue and credited to the homestead credit fund. The 27 director of revenue may institute legal proceedings against a 28 homestead credit claimant for the collection of payments made 29 on disallowed credits and the penalty, if any. If a person 30 makes a false claim or affidavit with fraudulent intent to 31 obtain the homestead exemption or credit, the person is guilty 32 of a fraudulent practice and the claim shall be disallowed 33 in full. If the credit has been paid, the amount of the 34 credit plus a penalty equal to twenty-five percent of the 35 -28- LSB 2550XC (7) 90 md/jh 28/ 75
S.F. _____ amount of credit plus interest, at the rate in effect under 1 section 421.7 , from the time of payment shall be collected 2 by the county treasurer in the same manner as other property 3 taxes, penalty, and interest are collected and when collected 4 shall be paid to the director of revenue. If a homestead 5 exemption or credit is disallowed and the claimant failed to 6 give written notice to the assessor as required by section 7 425.2 when the property ceased to be used as a homestead by the 8 claimant, a civil penalty equal to five percent of the amount 9 of the disallowed exemption or credit is assessed against the 10 claimant. 11 Sec. 67. Section 425.9, subsections 2, 3, and 4, Code 2023, 12 are amended to read as follows: 13 2. If any claim for exemption or credit made hereunder 14 has been denied by the board of supervisors, and such action 15 is subsequently reversed on appeal, the exemption or credit 16 shall be allowed on the homestead involved in said appeal, and 17 the director of revenue, the county auditor, and the county 18 treasurer shall make such exemption or credit and change their 19 books and records accordingly. 20 3. In the event the appealing taxpayer has paid one or both 21 of the installments of the tax payable in the year or years in 22 question on such homestead valuation, remittance shall be made 23 to such taxpayer of the amount of such credit or exemption . 24 4. The amount of such credit shall be allocated and paid 25 from the surplus redeposited in the homestead credit fund 26 provided for in subsection 1 . The amount of such exemption not 27 covered by the credit shall be allowed as a credit on future 28 taxes due and payable. 29 Sec. 68. Section 425.10, Code 2023, is amended to read as 30 follows: 31 425.10 Reversal of allowed claim. 32 In the event any claim is allowed, and subsequently reversed 33 on appeal, any exemption and credit made under the claim 34 shall be void. The amount of the erroneous exemption and 35 -29- LSB 2550XC (7) 90 md/jh 29/ 75
S.F. _____ credit shall be charged against the property in question, and 1 the director of revenue, the county auditor, and the county 2 treasurer are authorized and directed to correct their books 3 and records accordingly. The amount of the erroneous credit, 4 when collected, shall be returned by the county treasurer to 5 the homestead credit fund to be reallocated the following year 6 as provided in this subchapter . 7 Sec. 69. Section 425.11, subsection 1, paragraph d, 8 subparagraph (3), Code 2023, is amended to read as follows: 9 (3) It must not embrace more than one dwelling house, but 10 where a homestead has more than one dwelling house situated 11 thereon, the exemption and credit provided for in this 12 subchapter shall apply to the home and buildings used by the 13 owner, but shall not apply to any other dwelling house and 14 buildings appurtenant. 15 Sec. 70. Section 425.11, subsection 1, paragraph e, Code 16 2023, is amended to read as follows: 17 e. Owner means the person who holds the fee simple 18 title to the homestead, and in addition shall mean the person 19 occupying as a surviving spouse or the person occupying under 20 a contract of purchase which contract has been recorded in 21 the office of the county recorder of the county in which the 22 property is located; or the person occupying the homestead 23 under devise or by operation of the inheritance laws where 24 the whole interest passes or where the divided interest is 25 shared only by persons related or formerly related to each 26 other by blood, marriage or adoption; or the person occupying 27 the homestead is a shareholder of a family farm corporation 28 that owns the property; or the person occupying the homestead 29 under a deed which conveys a divided interest where the divided 30 interest is shared only by persons related or formerly related 31 to each other by blood, marriage or adoption; or where the 32 person occupying the homestead holds a life estate with the 33 reversion interest held by a nonprofit corporation organized 34 under chapter 504 , provided that the holder of the life estate 35 -30- LSB 2550XC (7) 90 md/jh 30/ 75
S.F. _____ is liable for and pays property tax on the homestead; or where 1 the person occupying the homestead holds an interest in a 2 horizontal property regime under chapter 499B , regardless 3 of whether the underlying land committed to the horizontal 4 property regime is in fee or as a leasehold interest, provided 5 that the holder of the interest in the horizontal property 6 regime is liable for and pays property tax on the homestead; 7 or where the person occupying the homestead is a member of a 8 community land trust as defined in 42 U.S.C. 12773, regardless 9 of whether the underlying land is in fee or as a leasehold 10 interest, provided that the member of the community land trust 11 is occupying the homestead and is liable for and pays property 12 tax on the homestead. For the purpose of this subchapter , 13 the word owner shall be construed to mean a bona fide owner 14 and not one for the purpose only of availing the person of 15 the benefits of this subchapter . In order to qualify for the 16 homestead tax exemption and credit, evidence of ownership shall 17 be on file in the office of the clerk of the district court 18 or recorded in the office of the county recorder at the time 19 the owner files with the assessor a verified statement of the 20 homestead claimed by the owner as provided in section 425.2 . 21 Sec. 71. Section 425.12, Code 2023, is amended to read as 22 follows: 23 425.12 Indian land. 24 Each forty acres of land, or fraction thereof, occupied by 25 a member or members of the Sac and Fox Indians in Tama county, 26 which land is held in trust by the secretary of the interior of 27 the United States for said Indians, shall be given a homestead 28 tax exemption and credit within the meaning and under the 29 provisions of this subchapter . Application for such homestead 30 tax exemption and credit shall be made to the county auditor of 31 Tama county and may be made by a representative of the tribal 32 council. 33 Sec. 72. Section 425.13, Code 2023, is amended to read as 34 follows: 35 -31- LSB 2550XC (7) 90 md/jh 31/ 75
S.F. _____ 425.13 Conspiracy to defraud. 1 If any two or more persons conspire and confederate together 2 with fraudulent intent to obtain the exemption or credit 3 provided for under the terms of this subchapter by making a 4 false deed, or a false contract of purchase, they are guilty of 5 a fraudulent practice. 6 Sec. 73. Section 425.16, subsection 1, Code 2023, is amended 7 to read as follows: 8 1. In addition to the homestead tax credit allowed under 9 section 425.1, subsections 1 through 4 , and the homestead 10 exemption under section 425.lA, if applicable, persons who 11 own or rent their homesteads and who meet the qualifications 12 provided in this subchapter are eligible for a property 13 tax credit for property taxes due or reimbursement of rent 14 constituting property taxes paid. 15 Sec. 74. Section 425.17, subsections 4 and 8, Code 2023, are 16 amended to read as follows: 17 4. Homestead means the dwelling owned or rented and 18 actually used as a home by the claimant during the period 19 specified in subsection 2 , and so much of the land surrounding 20 it including one or more contiguous lots or tracts of land, 21 as is reasonably necessary for use of the dwelling as a home, 22 and may consist of a part of a multidwelling or multipurpose 23 building and a part of the land upon which it is built. It 24 does not include personal property except that a manufactured 25 or mobile home may be a homestead. Any dwelling or a part of 26 a multidwelling or multipurpose building which is exempt from 27 taxation , except for an exemption under section 425.1A, does 28 not qualify as a homestead under this subchapter . However, 29 solely for purposes of claimants living in a property and 30 receiving reimbursement for rent constituting property taxes 31 paid immediately before the property becomes tax exempt, and 32 continuing to live in it after it becomes tax exempt, the 33 property shall continue to be classified as a homestead. 34 A homestead must be located in this state. When a person 35 -32- LSB 2550XC (7) 90 md/jh 32/ 75
S.F. _____ is confined in a nursing home, extended-care facility, or 1 hospital, the person shall be considered as occupying or living 2 in the persons homestead if the person is the owner of the 3 homestead and the person maintains the homestead and does not 4 lease, rent, or otherwise receive profits from other persons 5 for the use of the homestead. 6 8. Property taxes due means property taxes including any 7 special assessments, but exclusive of delinquent interest and 8 charges for services, due on a claimants homestead in this 9 state, but includes only property taxes for which the claimant 10 is liable and which will actually be paid by the claimant. 11 However, if the claimant is a person whose property taxes have 12 been suspended under sections 427.8 and 427.9 , property taxes 13 due means property taxes including any special assessments, 14 but exclusive of delinquent interest and charges for services, 15 due on a claimants homestead in this state, but includes only 16 property taxes for which the claimant is liable and which would 17 have to be paid by the claimant if the payment of the taxes 18 has not been suspended pursuant to sections 427.8 and 427.9 . 19 Property taxes due shall be computed with no deduction for 20 any credit under this subchapter or for any homestead exemption 21 under section 425.1A or credit allowed under section 425.1 22 subchapter I . Each claim shall be based upon the taxes due 23 during the fiscal year next following the base year. If a 24 homestead is owned by two or more persons as joint tenants or 25 tenants in common, and one or more persons are not members 26 of claimants household, property taxes due is that part of 27 property taxes due on the homestead which equals the ownership 28 percentage of the claimant and the claimants household. The 29 county treasurer shall include with the tax receipt a statement 30 that if the owner of the property is eighteen years of age 31 or over, the person may be eligible for the credit allowed 32 under this subchapter . If a homestead is an integral part 33 of a farm, the claimant may use the total property taxes due 34 for the larger unit. If a homestead is an integral part of a 35 -33- LSB 2550XC (7) 90 md/jh 33/ 75
S.F. _____ multidwelling or multipurpose building the property taxes due 1 for the purpose of this subsection shall be prorated to reflect 2 the portion which the value of the property that the household 3 occupies as its homestead is to the value of the entire 4 structure. For purposes of this subsection , unit refers to 5 that parcel of property covered by a single tax statement of 6 which the homestead is a part. 7 Sec. 75. Section 435.26, subsection 1, paragraph a, Code 8 2023, is amended to read as follows: 9 a. A mobile home or manufactured home which is located 10 outside a manufactured home community or mobile home park shall 11 be converted to real estate by being placed on a permanent 12 foundation and shall be assessed for real estate taxes. A 13 home, after conversion to real estate, is eligible for the 14 homestead tax exemption and credit and the military service 15 tax exemption as provided in sections 425.2 and chapter 425, 16 subchapter I, and section 426A.11 . A taxable mobile home or 17 manufactured home which is located outside of a manufactured 18 home community or mobile home park as of January 1, 1995, is 19 also exempt from the permanent foundation requirements of this 20 chapter until the home is relocated. 21 Sec. 76. Section 435.26A, subsection 3, Code 2023, is 22 amended to read as follows: 23 3. After the surrender of a manufactured homes certificate 24 of title under this section , the manufactured home shall 25 continue to be taxed under section 435.22 and is not eligible 26 for the homestead tax exemption and credit or the military 27 service tax exemption and credit . A foreclosure action on a 28 manufactured home whose title has been surrendered under this 29 section shall be conducted as a real estate foreclosure. A tax 30 lien and its priority shall remain the same on a manufactured 31 home after its certificate of title has been surrendered. 32 Sec. 77. Section 499A.14, Code 2023, is amended to read as 33 follows: 34 499A.14 Taxation. 35 -34- LSB 2550XC (7) 90 md/jh 34/ 75
S.F. _____ The real estate shall be taxed in the name of the 1 cooperative, and each member of the cooperative shall pay 2 that members proportionate share of the tax in accordance 3 with the proration formula set forth in the bylaws, and each 4 member occupying an apartment as a residence shall receive 5 that members proportionate homestead tax exemption and credit 6 and each veteran of the military services of the United States 7 identified as such under the laws of the state of Iowa or the 8 United States shall receive as a credit that members veterans 9 tax benefit as prescribed by the laws of the state of Iowa. 10 Sec. 78. EXISTING HOMESTEAD CLAIMS. Homestead credit 11 claims approved under chapter 425, subchapter I, prior to and 12 valid on the effective date of this division of this Act shall 13 result in a homestead exemption under chapter 425, subchapter 14 I, as enacted in this division of this Act, without further 15 filing by the claimant if the claimant meets the criteria for 16 the exemption and the assessor has appropriate information to 17 verify such eligibility. 18 Sec. 79. APPLICABILITY. This division of this Act applies 19 to assessment years beginning on or after January 1, 2024. 20 DIVISION VIII 21 ELDERLY PROPERTY TAX CREDIT 22 Sec. 80. Section 425.23, subsection 1, paragraph c, 23 subparagraph (2), Code 2023, is amended to read as follows: 24 (2) The difference between the actual amount of net 25 property taxes due on the homestead during the fiscal year next 26 following the base year minus the actual amount of net property 27 taxes due on the homestead during the first fiscal year for 28 which the claimant filed a claim for a credit calculated under 29 this paragraph c and for which the property taxes due on the 30 homestead were calculated on an assessed valuation that was 31 not a partial assessment and if the claimant has filed for the 32 credit calculated under this paragraph c for each of the 33 subsequent fiscal years after the first credit claimed. 34 Sec. 81. Section 425.23, subsection 2, Code 2023, is amended 35 -35- LSB 2550XC (7) 90 md/jh 35/ 75
S.F. _____ to read as follows: 1 2. a. The Except as provided in paragraph b , the 2 actual credit for property taxes due shall be determined 3 by subtracting from the tentative credit the amount of the 4 homestead credit under section 425.1 which is allowed as a 5 credit against property taxes due in the fiscal year next 6 following the base year by the claimant or any person of 7 the claimants household. If the subtraction produces a 8 negative amount, there shall be no credit but no refund shall 9 be required. The actual reimbursement for rent constituting 10 property taxes paid shall be equal to the tentative 11 reimbursement. 12 b. If the claimants tentative credit is the amount 13 determined under subsection 1, paragraph c , subparagraph (2), 14 the actual credit amount shall be equal to the tentative credit 15 amount. 16 Sec. 82. EFFECTIVE DATE. This division of this Act, being 17 deemed of immediate importance, takes effect upon enactment. 18 Sec. 83. RETROACTIVE APPLICABILITY. This division of 19 this Act applies retroactively to claims under chapter 425, 20 subchapter II, filed on or after January 1, 2022. 21 DIVISION IX 22 MILITARY SERVICE PROPERTY TAX EXEMPTION AND CREDIT 23 Sec. 84. Section 25B.7, subsection 2, paragraph c, Code 24 2023, is amended by striking the paragraph. 25 Sec. 85. Section 426A.1A, Code 2023, is amended to read as 26 follows: 27 426A.1A Appropriation. 28 There For each fiscal year beginning before July 1, 2025, 29 there is appropriated from the general fund of the state the 30 amounts necessary to fund the credits provided under this 31 chapter . 32 Sec. 86. Section 426A.2, Code 2023, is amended to read as 33 follows: 34 426A.2 Military service tax credit. 35 -36- LSB 2550XC (7) 90 md/jh 36/ 75
S.F. _____ The For each fiscal year beginning before July 1, 2025, the 1 moneys appropriated under section 426A.1A shall be apportioned 2 each year so as to replace all or a portion of the tax which 3 would be due on property eligible for military service tax 4 exemption in the state, if the property were subject to 5 taxation, the amount of the credit to be not more than six 6 dollars and ninety-two cents per thousand dollars of assessed 7 value of property which would be subject to the tax, except for 8 the military service tax exemption. 9 Sec. 87. Section 426A.11, subsections 1 and 2, Code 2023, 10 are amended to read as follows: 11 1. The property, not to exceed two thousand seven hundred 12 seventy-eight dollars in taxable value for assessment years 13 beginning before January 1, 2024 , of any veteran, as defined in 14 section 35.1 , of World War I. 15 2. a. The property, not to exceed one thousand eight 16 hundred fifty-two dollars in taxable value for assessment years 17 beginning before January 1, 2024 , of an honorably separated, 18 retired, furloughed to a reserve, placed on inactive status, 19 or discharged veteran, as defined in section 35.1, subsection 20 2 , paragraph a or b . 21 b. The property, not to exceed four thousand dollars in 22 taxable value for the assessment years beginning on or after 23 January 1, 2024, of an honorably separated, retired, furloughed 24 to a reserve, placed on inactive status, or discharged veteran, 25 as defined in section 35.1, subsection 2, paragraph a or b . 26 Sec. 88. IMPLEMENTATION. Section 25B.7, subsection 1, 27 shall not apply to the property tax exemption provided in this 28 Act. 29 Sec. 89. APPLICABILITY. This division of this Act applies 30 to assessment years beginning on or after January 1, 2024. 31 DIVISION X 32 PROPERTY TAX BENEFITS AND INCENTIVES 33 Sec. 90. NEW SECTION . 404.3C Assessment agreements 34 commercial property. 35 -37- LSB 2550XC (7) 90 md/jh 37/ 75
S.F. _____ 1. For revitalization areas established under this chapter 1 on or after the effective date of this division of this Act 2 and for first-year exemption applications for property located 3 in a revitalization area in existence on the effective date 4 of this division of this Act filed on or after the effective 5 date of this division of this Act, commercial property shall 6 not receive a tax exemption under this chapter unless the city 7 or county, as applicable, and the owner of the qualified real 8 estate enter into a written assessment agreement specifying a 9 minimum actual value until a specified termination date for the 10 duration of the exemption period. 11 2. a. The assessment agreement shall be presented to the 12 appropriate assessor. The assessor shall review the plans and 13 specifications for the improvements to be made to the property 14 and if the minimum actual value contained in the assessment 15 agreement appears to be reasonable, the assessor shall execute 16 the following certification upon the agreement: 17 The undersigned assessor, being legally responsible for the 18 assessment of the above described property upon completion of 19 the improvements to be made on it, certifies that the actual 20 value assigned to that land and improvements upon completion 21 shall not be less than $......... 22 b. The assessment agreement with the certification of 23 the assessor and a copy of this subsection shall be filed in 24 the office of the county recorder of the county where the 25 property is located. Upon completion of the improvements, 26 the assessor shall value the property as required by law, 27 except that the actual value shall not be less than the minimum 28 actual value contained in the assessment agreement. This 29 subsection does not prohibit the assessor from assigning a 30 higher actual value to the property or prohibit the owner 31 from seeking administrative or legal remedies to reduce the 32 actual value assigned except that the actual value shall not 33 be reduced below the minimum actual value contained in the 34 assessment agreement. An assessor, county auditor, board of 35 -38- LSB 2550XC (7) 90 md/jh 38/ 75
S.F. _____ review, director of revenue, or court of this state shall not 1 reduce or order the reduction of the actual value below the 2 minimum actual value in the agreement during the term of the 3 agreement regardless of the actual value which may result from 4 the incomplete construction of improvements, destruction or 5 diminution by any cause, insured or uninsured, except in the 6 case of acquisition or reacquisition of the property by a 7 public entity. Recording of an assessment agreement complying 8 with this subsection constitutes notice of the assessment 9 agreement to a subsequent purchaser or encumbrancer of the land 10 or any part of it, whether voluntary or involuntary, and is 11 binding upon a subsequent purchaser or encumbrancer. 12 Sec. 91. NEW SECTION . 404.3D Exemptions for residential 13 property. 14 For revitalization areas established under this chapter on 15 or after the effective date of this division of this Act and 16 for first-year exemption applications for property located in a 17 revitalization area in existence on the effective date of this 18 division of this Act filed on or after the effective date of 19 this division of this Act, an exemption authorized under this 20 chapter for property that is residential property shall not 21 apply to property tax levies imposed by a school district. 22 Sec. 92. EFFECTIVE DATE. This division of this Act takes 23 effect July 1, 2024. 24 DIVISION XI 25 TRANSIT FUNDING 26 Sec. 93. Section 364.2, subsection 4, paragraph f, 27 subparagraph (1), subparagraph division (b), Code 2023, is 28 amended to read as follows: 29 (b) For franchise fees assessed and collected during fiscal 30 years beginning on or after July 1, 2013 2024 , but before 31 July 1, 2030, by a city that is the subject of a judgment, 32 court-approved settlement, or court-approved compromise 33 providing for payment of restitution, a refund, or a return 34 described in section 384.3A, subsection 3 , paragraph j with 35 -39- LSB 2550XC (7) 90 md/jh 39/ 75
S.F. _____ a population exceeding two hundred thousand , the rate of the 1 franchise fee shall not exceed seven and one-half percent 2 of gross revenues generated from sales of the franchisee in 3 the city, and franchise fee amounts assessed and collected 4 during such fiscal years in excess of five percent of gross 5 revenues generated from sales shall be used solely for the 6 purpose specified in section 384.3A, subsection 3 , paragraph 7 j . A city may assess and collect a franchise fee in excess 8 of five percent of gross revenues generated from the sales 9 of the franchisee pursuant to this subparagraph division (b) 10 for a period not to exceed seven consecutive fiscal years 11 once the franchise fee is first imposed at a rate in excess 12 of five percent. An ordinance increasing the franchise fee 13 rate to greater than five percent pursuant to this subparagraph 14 division (b) shall not become effective unless approved at 15 an election. After passage of the ordinance, the council 16 shall submit the proposal at a special election held on a date 17 specified in section 39.2, subsection 4 , paragraph b . If a 18 majority of those voting on the proposal approves the proposal, 19 the city may proceed as proposed. The complete text of the 20 ordinance shall be included on the ballot and the full text 21 of the ordinance posted for the voters pursuant to section 22 52.25 . All absentee voters shall receive the full text of the 23 ordinance along with the absentee ballot. This subparagraph 24 division (b) is repealed July 1, 2030. 25 Sec. 94. Section 384.3A, subsection 3, paragraph j, Code 26 2023, is amended to read as follows: 27 j. For franchise fees assessed and collected by a city in 28 excess of five percent of gross revenues generated from sales 29 of the franchisee within the city pursuant to section 364.2, 30 subsection 4 , paragraph f , subparagraph (1), subparagraph 31 division (b), during fiscal years beginning on or after July 1, 32 2013 2024 , but before July 1, 2030, the adjustment, renewal, 33 or extension of any part or all of the legal indebtedness of 34 a city, whether evidenced by bonds, warrants, court-approved 35 -40- LSB 2550XC (7) 90 md/jh 40/ 75
S.F. _____ settlements, court-approved compromises, or judgments, or the 1 funding or refunding of the same, if such legal indebtedness 2 relates to restitution, a refund, or a return ordered by a 3 court of competent jurisdiction for franchise fees assessed 4 and collected by the city before June 20, 2013 solely for the 5 reduction of property tax levies that support the operation and 6 maintenance of a municipal transit system or a regional transit 7 district or to maintain transportation service levels of a 8 municipal transit system or a regional transit district . This 9 paragraph j is repealed July 1, 2030. 10 Sec. 95. EFFECTIVE DATE. This division of this Act takes 11 effect July 1, 2024. 12 DIVISION XII 13 COUNTY AUDITOR VALUATION REPORTS 14 Sec. 96. Section 331.510, subsections 3 and 4, Code 2023, 15 are amended to read as follows: 16 3. An annual report not later than January 1 to the 17 department of management of the valuation by class of property 18 for each taxing district in the county on forms provided by the 19 department of management. The valuations reported shall be 20 those valuations used for determining the levy rates necessary 21 to fund the budgets of the taxing districts for the following 22 fiscal year. Each annual report under this subsection for 23 assessment years beginning on or after January 1, 2024, 24 shall distinguish such values as revaluation or other type of 25 addition to value, as defined and submitted in the assessors 26 abstract transmitted to the department of revenue under section 27 441.45. 28 4. An annual report not later than January 1 to the 29 governing body of each taxing district in the county of the 30 assessed valuations of taxable property in the taxing district 31 as reported to the department of management. Each annual 32 report under this subsection for assessment years beginning 33 on or after January 1, 2024, shall distinguish such values as 34 revaluation or other type of addition to value, as defined 35 -41- LSB 2550XC (7) 90 md/jh 41/ 75
S.F. _____ and submitted in the assessors abstract transmitted to the 1 department of revenue under section 441.45. 2 DIVISION XIII 3 LOCAL GOVERNMENT BUDGETS AND TAXPAYER STATEMENTS 4 Sec. 97. NEW SECTION . 24.2A Budget statements to owners 5 and taxpayers. 6 1. For purposes of this section only: 7 a. Budget year is the fiscal year beginning during the 8 calendar year in which a budget is certified. 9 b. Current fiscal year is the fiscal year ending during 10 the calendar year in which a budget for the budget year is 11 certified. 12 c. Effective property tax rate means the property tax rate 13 per one thousand dollars of assessed value and is equal to 14 one thousand multiplied by the quotient of the current fiscal 15 years actual property tax dollars certified for levy divided 16 by the total assessed value used to calculate taxes for the 17 budget year. 18 d. Political subdivision means a school district, a 19 county, or a city. 20 2. a. On or before February 27 of each year, each political 21 subdivision shall file with the county auditor a report 22 containing all necessary information for the county auditor to 23 calculate amounts required to be included in the statements 24 mailed under paragraph b . 25 b. Not later than March 1, the county auditor shall compile 26 all required information from all reports received and send to 27 each property owner or taxpayer within the county by regular 28 mail an individual statement containing all of the following 29 for each of the political subdivisions comprising the owners 30 or taxpayers taxing district: 31 (1) The sum of the current fiscal years actual property 32 taxes certified for levy for all of the political subdivisions 33 levies and the combined property tax rate per one thousand 34 dollars for such tax amount for the current fiscal year. 35 -42- LSB 2550XC (7) 90 md/jh 42/ 75
S.F. _____ (2) The combined effective property tax rate for the 1 political subdivision calculated using the sum of the current 2 fiscal years actual property taxes certified for levy for all 3 of the political subdivisions levies under subparagraph (1). 4 (3) The combined amount of the proposed property tax dollars 5 to be certified for all of the political subdivisions levies 6 for the budget year and the proposed combined property tax rate 7 per one thousand dollars for such levies. 8 (4) If the proposed property tax dollars specified 9 under subparagraph (3) exceeds the current fiscal years 10 actual property tax dollars certified for levy specified in 11 subparagraph (1), a detailed statement of the major reasons for 12 the increase, including the specific purposes or programs for 13 which the political subdivision is proposing an increase. 14 (5) An example comparing the amount of property taxes on 15 a residential property with an actual value of one hundred 16 thousand dollars in the current fiscal year and such amount 17 on the residential property using the proposed property 18 tax dollars for the budget year, including the percentage 19 difference in such amounts. 20 (6) An example comparing the amount of property taxes 21 on a commercial property with an actual value of one hundred 22 thousand dollars in the current fiscal year and such amount on 23 the commercial property using the proposed property tax dollars 24 for the budget year, including the percentage difference in 25 such amounts. 26 (7) The political subdivisions percentage of total 27 property taxes certified for levy in the owners or taxpayers 28 taxing district in the current fiscal year among all taxing 29 authorities. 30 (8) The date, time, and location of the political 31 subdivisions public hearing required under subsection 4. 32 (9) Information on how to access on the political 33 subdivisions internet site the political subdivisions 34 statements under this section and other budget documents for 35 -43- LSB 2550XC (7) 90 md/jh 43/ 75
S.F. _____ prior fiscal years. 1 c. Proof of mailing shall be maintained by the county 2 auditor. 3 3. The department of management shall prescribe the form for 4 the report required under subsection 2, paragraph a , and the 5 statements required to be mailed under subsection 2, paragraph 6 b . 7 4. a. Each political subdivision shall set a time and place 8 for a public hearing on the political subdivisions proposed 9 property tax amount for the budget year and the political 10 subdivisions information included in the statements under 11 subsection 2. The date of the political subdivisions public 12 hearing shall not be on the same date of the public hearing 13 under this section of another political subdivision with which 14 the political subdivision shares territory. At the hearing, 15 the governing body of the political subdivision shall receive 16 oral or written testimony from any resident or property owner 17 of the political subdivision. This public hearing shall be 18 separate from any other meeting of the governing body of the 19 political subdivision, including any other meeting or public 20 hearing relating to the political subdivisions budget, and 21 other business of the political subdivision that is not related 22 to the proposed property tax amounts and the information in the 23 statements shall not be conducted at the public hearing. After 24 all testimony has been received and considered, the governing 25 body may decrease, but not increase, the proposed property tax 26 amount to be included in the political subdivisions budget. 27 b. The political subdivision shall also publish notice 28 of the hearing not less than ten nor more than twenty days 29 prior to the hearing in a newspaper published in the political 30 subdivision, if any, and if not, then in a newspaper of general 31 circulation in the political subdivision. 32 c. Notice of the hearing shall also be posted and clearly 33 identified on the political subdivisions internet site 34 for public viewing beginning on the date of the newspaper 35 -44- LSB 2550XC (7) 90 md/jh 44/ 75
S.F. _____ publication and shall be maintained on the political 1 subdivisions internet site with all such prior year notices 2 and copies of the statements mailed under subsection 2. 3 Additionally, if the political subdivision maintains a social 4 media account on one or more social media applications, the 5 public hearing notice or an electronic link to the public 6 hearing notice shall be posted on each such account on the same 7 day as the publication of the notice. 8 Sec. 98. Section 24.3, unnumbered paragraph 1, Code 2023, 9 is amended to read as follows: 10 A municipality shall not certify or levy in any fiscal year 11 any tax on property subject to taxation unless and until the 12 following estimates have been made, filed, and considered, 13 and for school districts, the individual statements have been 14 mailed and public hearings held, as provided in this chapter : 15 Sec. 99. Section 24.10, Code 2023, is amended to read as 16 follows: 17 24.10 Levies void. 18 The verified proof of the publication of the notice 19 under section 24.9 shall be filed and verified proof of the 20 mailing of individual statements under section 24.2A shall be 21 established in the office of the county auditor and preserved 22 by the auditor. A levy shall not be valid unless and until 23 that notice is such notices are published , mailed, and filed. 24 However, failure of an owner or taxpayer to receive a statement 25 under section 24.2A shall not invalidate a levy. 26 Sec. 100. Section 24.17, subsection 1, Code 2023, is amended 27 to read as follows: 28 1. The local budgets of the various political subdivisions 29 shall be certified by the chairperson of the certifying board 30 or levying board, as the case may be, in duplicate to the 31 county auditor not later than March 15 of each year on forms, 32 and pursuant to instructions, prescribed by the department 33 of management. However, if the political subdivision is a 34 county , or a city, its budget shall be certified not later than 35 -45- LSB 2550XC (7) 90 md/jh 45/ 75
S.F. _____ March 31 of each year, and if the political subdivision is or a 1 school district, as defined in section 257.2 , its budget shall 2 be certified not later than April 15 of each year. 3 Sec. 101. Section 24.27, subsection 1, Code 2023, is amended 4 to read as follows: 5 1. Not later than March 25, or April 10 for a county or a 6 city, or April 25 if the municipality is a county, city, or 7 school district, a number of persons in any municipality equal 8 to one-fourth of one percent of those voting for the office of 9 governor, at the last general election in the municipality, 10 but the number shall not be less than ten, and the number 11 need not be more than one hundred persons, who are affected 12 by any proposed budget, expenditure or tax levy, or by any 13 item thereof, may appeal from any decision of the certifying 14 board or the levying board by filing with the county auditor 15 of the county in which the municipal corporation is located, a 16 written protest setting forth their objections to the budget, 17 expenditure or tax levy, or to one or more items thereof, and 18 the grounds for their objections. If a budget is certified 19 after March 15, or March 31 in the case of a county or a city, 20 or April 15 in the case of a county, city, or school district, 21 all appeal time limits shall be extended to correspond to 22 allowances for a timely filing. 23 Sec. 102. Section 24.48, subsection 4, Code 2023, is amended 24 to read as follows: 25 4. The city finance committee shall have officially 26 notified any city of its approval, modification or rejection 27 of the citys appeal of the decision of the director of the 28 department of management regarding a citys request for a 29 suspension of the statutory property tax levy limitation prior 30 to thirty-five days before March 31 April 15 . 31 Sec. 103. Section 331.422, unnumbered paragraph 1, Code 32 2023, is amended to read as follows: 33 Subject to this section and sections 331.423 through 331.426 34 or as otherwise provided by state law, the board of each county 35 -46- LSB 2550XC (7) 90 md/jh 46/ 75
S.F. _____ shall certify property taxes annually at its March April 1 session to be levied for county purposes as follows: 2 Sec. 104. Section 331.434, unnumbered paragraph 1, Code 3 2023, is amended to read as follows: 4 Annually, the board of each county, subject to section 5 331.403, subsection 4 , sections 331.423 through 331.426 , 6 section 331.433A , the applicable portions of chapter 24, and 7 other applicable state law, shall prepare and adopt a budget, 8 certify taxes, and provide appropriations as follows: 9 Sec. 105. Section 331.434, subsection 3, Code 2023, is 10 amended to read as follows: 11 3. Following, and not until, adoption of the resolution 12 under section 331.433A , the requirements of section 24.2A are 13 completed, the board shall set a time and place for a public 14 hearing on the budget before the final certification date and 15 shall publish notice of the hearing not less than ten nor more 16 than twenty days prior to the hearing in the county newspapers 17 selected under chapter 349 . A summary of the proposed budget 18 and a description of the procedure for protesting the county 19 budget under section 331.436 , in the form prescribed by the 20 director of the department of management, shall be included 21 in the notice. Proof of publication of the notice under this 22 subsection 3 and a copy of the resolution adopted under section 23 331.433A shall be filed with and preserved by the county 24 auditor. A levy is not valid unless and until the notice is 25 published and the notice and resolution adopted under section 26 331.433A are filed individual statements under section 24.2A 27 are mailed . The department of management shall prescribe the 28 form for the public hearing notice for use by counties. 29 Sec. 106. Section 331.434, subsection 5, paragraph a, Code 30 2023, is amended to read as follows: 31 a. After the hearing, the board shall adopt by resolution 32 a budget and certificate of taxes for the next fiscal year 33 and shall direct the auditor to properly certify and file the 34 budget and certificate of taxes as adopted. The board shall 35 -47- LSB 2550XC (7) 90 md/jh 47/ 75
S.F. _____ not adopt a tax in excess of the estimate published or the 1 applicable amounts specified in the resolution adopted under 2 section 331.433A , except a tax which is approved by a vote of 3 the people, and a greater tax than that adopted shall not be 4 levied or collected. A county budget and certificate of taxes 5 adopted for the following fiscal year becomes effective on the 6 first day of that year. 7 Sec. 107. Section 331.434, subsection 7, Code 2023, is 8 amended to read as follows: 9 7. Taxes levied by a county whose budget is certified after 10 March 31 April 15 shall be limited to the prior years budget 11 amount. However, this penalty may be waived by the director 12 of the department of management if the county demonstrates 13 that the March 31 deadline was missed because of circumstances 14 beyond the control of the county. 15 Sec. 108. Section 331.435, subsection 2, Code 2023, is 16 amended to read as follows: 17 2. The board shall prepare and adopt a budget amendment in 18 the same manner as the original budget as provided in section 19 331.434 , but excluding the requirements for adoption of the 20 resolution under section 331.433A mailing individual statements 21 under section 24.2A , and the amendment is subject to protest as 22 provided in section 331.436 , except that the director of the 23 department of management may by rule provide that amendments 24 of certain types or up to certain amounts may be made without 25 public hearing and without being subject to protest. A county 26 budget for the ensuing fiscal year shall be amended by May 31 27 to allow time for a protest hearing to be held and a decision 28 rendered before June 30. An amendment of a budget after May 29 31 which is properly appealed but without adequate time for 30 hearing and decision before June 30 is void. 31 Sec. 109. Section 331.436, Code 2023, is amended to read as 32 follows: 33 331.436 Protest. 34 Protests to the adopted budget must be made in accordance 35 -48- LSB 2550XC (7) 90 md/jh 48/ 75
S.F. _____ with sections 24.27 through 24.32 as if the county were the 1 municipality under those sections except that the protest must 2 be filed no later than April 10 25 and the number of people 3 necessary to file a protest under this section shall not be 4 less than one hundred. 5 Sec. 110. Section 384.2, subsection 1, Code 2023, is amended 6 to read as follows: 7 1. Except as otherwise provided for special charter cities, 8 a citys fiscal year shall be as provided in section 24.2, 9 subsection 3 . All city property taxes must be certified by 10 a city to the county auditor on or before March 31 April 11 15 of each year, unless otherwise provided by state law. 12 However, municipal utilities, if not supported by taxation 13 or the proceeds of outstanding indebtedness payable from 14 taxes may, with the councils consent, choose to operate on a 15 fiscal year which is the calendar year. The receipt by the 16 utility of payments from other governmental funds for public 17 fire protection, street lighting, or other public use of the 18 utilitys services shall not be deemed support by taxation. 19 After notice and hearing in the same manner as required for the 20 citys regular budget under section 384.16 , the utility budget 21 must be approved by resolution of the council not later than 22 twenty days prior to the beginning of the calendar year for 23 which the budget applies. 24 Sec. 111. Section 384.16, unnumbered paragraph 1, Code 25 2023, is amended to read as follows: 26 Annually, a city that has satisfied the requirements of 27 section 384.15A and section 384.22, subsection 3 , and the 28 applicable portions of chapter 24, shall prepare and adopt a 29 budget, and shall certify taxes as follows: 30 Sec. 112. Section 384.16, subsections 3, 5, and 6, Code 31 2023, are amended to read as follows: 32 3. Following, and not until, adoption of the resolution 33 under section 384.15A , requirements of section 24.2A are 34 completed, the council shall set a time and place for public 35 -49- LSB 2550XC (7) 90 md/jh 49/ 75
S.F. _____ hearing on the budget before the final certification date and 1 shall publish notice of the hearing not less than ten nor more 2 than twenty days before the hearing in a newspaper published 3 at least once weekly and having general circulation in the 4 city. However, if the city has a population of two hundred 5 or less, publication may be made by posting in three public 6 places in the city. A summary of the proposed budget and a 7 description of the procedure for protesting the city budget 8 under section 384.19 , in the form prescribed by the director of 9 the department of management, shall be included in the notice. 10 Proof of publication of the notice under this subsection 3 and 11 a copy of the resolution adopted under section 384.15A must be 12 filed with the county auditor. The department of management 13 shall prescribe the form for the public hearing notice for use 14 by cities. 15 5. After the hearing, the council shall adopt by resolution 16 a budget for at least the next fiscal year, and the clerk 17 shall certify the necessary tax levy for the next fiscal year 18 to the county auditor and the county board of supervisors. 19 The tax levy certified may be less than but not more than 20 the amount estimated in the proposed budget submitted at 21 the final hearing or the applicable amount specified in the 22 resolution adopted under section 384.15A , unless an additional 23 tax levy is approved at a city election. Two copies each of 24 the detailed budget as adopted and of the tax certificate must 25 be transmitted to the county auditor, who shall complete the 26 certificates and transmit a copy of each to the department of 27 management. 28 6. Taxes levied by a city whose budget is certified after 29 March 31 April 15 shall be limited to the prior years budget 30 amount. However, this penalty may be waived by the director of 31 the department of management if the city demonstrates that the 32 March 31 deadline was missed because of circumstances beyond 33 the control of the city. 34 Sec. 113. Section 384.17, Code 2023, is amended to read as 35 -50- LSB 2550XC (7) 90 md/jh 50/ 75
S.F. _____ follows: 1 384.17 Levy by county. 2 At the time required by law, the county board of supervisors 3 shall levy the taxes necessary for each city fund for the 4 following fiscal year. The levy must be as shown in the 5 adopted city budget and as certified by the clerk, subject to 6 any changes made after a protest hearing, and any additional 7 tax rates approved at a city election. A city levy is not valid 8 until proof of publication or posting of notice of a budget 9 hearing under section 384.16, subsection 3 , and the notice and 10 resolution adopted under section 384.15A are is filed with 11 the county auditor and individual statements are mailed under 12 section 24.2A . 13 Sec. 114. Section 384.18, subsection 2, Code 2023, is 14 amended to read as follows: 15 2. A budget amendment must be prepared and adopted in the 16 same manner as the original budget, as provided in section 17 384.16 , excluding the requirement for the mailing of individual 18 statements under section 24.2A, and is subject to protest as 19 provided in section 384.19 , except that the committee may by 20 rule provide that amendments of certain types or up to certain 21 amounts may be made without public hearing and without being 22 subject to protest. A city budget shall be amended by May 23 31 of the current fiscal year to allow time for a protest 24 hearing to be held and a decision rendered before June 30. The 25 amendment of a budget after May 31, which is properly appealed 26 but without adequate time for hearing and decision before June 27 30 is void. 28 Sec. 115. REPEAL. Sections 331.433A and 384.15A, Code 2023, 29 are repealed. 30 Sec. 116. IMPLEMENTATION. Section 25B.2, subsection 3, 31 shall not apply to this division of this Act. 32 Sec. 117. APPLICABILITY. This division of this Act applies 33 to school district, county, and city budgets for fiscal years 34 beginning on or after July 1, 2024. 35 -51- LSB 2550XC (7) 90 md/jh 51/ 75
S.F. _____ DIVISION XIV 1 DRIVERS LICENSES AND NONOPERATORS IDENTIFICATION CARDS 2 Sec. 118. Section 321M.9, subsection 1, paragraph a, Code 3 2023, is amended by adding the following new subparagraph: 4 NEW SUBPARAGRAPH . (4) The ten-dollar convenience fee 5 collected pursuant to subsection 1A. 6 Sec. 119. Section 321M.9, Code 2023, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 1A. Convenience fee. A county authorized 9 to issue drivers licenses under this chapter may charge, in 10 addition to any other fee imposed by law, a convenience fee for 11 the issuance or renewal of a drivers license or nonoperators 12 identification card to a person who is not a resident of the 13 county, unless that person pays property tax to the county 14 and provides proof of payment such as a receipt as provided 15 in section 445.5, subsection 6, or another form of proof as 16 determined by the county. The convenience fee shall be ten 17 dollars. 18 DIVISION XV 19 WRITING FEES 20 Sec. 120. Section 321G.27, subsection 1, paragraphs a, b, 21 and c, Code 2023, are amended by striking the paragraphs. 22 Sec. 121. Section 321G.27, subsection 1, Code 2023, is 23 amended by adding the following new paragraph: 24 NEW PARAGRAPH . 0d. The county recorder shall collect 25 a writing fee of two dollars for each privilege under this 26 chapter. 27 Sec. 122. Section 321G.29, subsection 3, Code 2023, is 28 amended to read as follows: 29 3. An owner of a snowmobile shall apply to the county 30 recorder for issuance of a certificate of title within thirty 31 days after acquisition. The application shall be on forms 32 the department prescribes and accompanied by the required fee 33 specified in section 321G.30 and the writing fee specified in 34 section 321G.27 . The application shall include a certification 35 -52- LSB 2550XC (7) 90 md/jh 52/ 75
S.F. _____ signed in writing containing substantially the representation 1 that statements made are true and correct to the best of the 2 applicants knowledge, information, and belief, under penalty 3 of perjury. The application shall contain the date of sale 4 and gross price of the snowmobile or the fair market value if 5 no sale immediately preceded the transfer and any additional 6 information the department requires. If the application is 7 made for a snowmobile last previously registered or titled in 8 another state or foreign country, the application shall contain 9 this information and any other information the department 10 requires. 11 Sec. 123. Section 321G.31, Code 2023, is amended to read as 12 follows: 13 321G.31 Transfer or repossession by operation of law. 14 1. If ownership of a snowmobile is transferred by 15 operation of law, such as by inheritance, order in bankruptcy, 16 insolvency, replevin, or execution sale, the transferee, within 17 thirty days after acquiring the right to possession of the 18 snowmobile, shall mail or deliver to the county recorder of 19 the transferees county of residence satisfactory proof of 20 ownership as the county recorder requires, together with an 21 application for a new certificate of title, and the required 22 fee , plus the writing fee specified in section 321G.27 . 23 However, if the transferee is the surviving spouse of the 24 deceased owner, the county recorder shall waive the required 25 fee fees . 26 2. If a lienholder repossesses a snowmobile by operation of 27 law and holds it for resale, the lienholder shall secure a new 28 certificate of title and shall pay the required fee , plus the 29 writing fee specified in section 321G.27 . 30 Sec. 124. Section 321G.32, subsection 1, Code 2023, is 31 amended by adding the following new paragraph: 32 NEW PARAGRAPH . c. The application shall be accompanied by 33 the writing fee specified in section 321G.27. 34 Sec. 125. Section 321I.29, subsection 1, paragraphs a, b, 35 -53- LSB 2550XC (7) 90 md/jh 53/ 75
S.F. _____ and c, Code 2023, are amended by striking the paragraphs. 1 Sec. 126. Section 321I.29, subsection 1, Code 2023, is 2 amended by adding the following new paragraph: 3 NEW PARAGRAPH . 0d. The county recorder shall collect 4 a writing fee of two dollars for each privilege under this 5 chapter. 6 Sec. 127. Section 321I.31, subsection 3, Code 2023, is 7 amended to read as follows: 8 3. An owner of an all-terrain vehicle shall apply to 9 the county recorder for issuance of a certificate of title 10 within thirty days after acquisition. The application shall 11 be on forms the department prescribes and accompanied by the 12 required fee specified in section 321I.32 and the writing fee 13 specified in section 321I.29 . The application shall include a 14 certification signed in writing containing substantially the 15 representation that statements made are true and correct to the 16 best of the applicants knowledge, information, and belief, 17 under penalty of perjury. The application shall contain the 18 date of sale and gross price of the all-terrain vehicle or the 19 fair market value if no sale immediately preceded the transfer 20 and any additional information the department requires. If the 21 application is made for an all-terrain vehicle last previously 22 registered or titled in another state or foreign country, 23 the application shall contain this information and any other 24 information the department requires. 25 Sec. 128. Section 321I.33, Code 2023, is amended to read as 26 follows: 27 321I.33 Transfer or repossession by operation of law. 28 1. If ownership of an all-terrain vehicle is transferred by 29 operation of law, such as by inheritance, order in bankruptcy, 30 insolvency, replevin, or execution sale, the transferee, 31 within thirty days after acquiring the right to possession of 32 the all-terrain vehicle, shall mail or deliver to the county 33 recorder of the transferees county of residence satisfactory 34 proof of ownership as the county recorder requires, together 35 -54- LSB 2550XC (7) 90 md/jh 54/ 75
S.F. _____ with an application for a new certificate of title, and 1 the required fee , plus the writing fee specified in section 2 321I.29 . However, if the transferee is the surviving spouse 3 of the deceased owner, the county recorder shall waive the 4 required fee fees . 5 2. If a lienholder repossesses an all-terrain vehicle by 6 operation of law and holds it for resale, the lienholder shall 7 secure a new certificate of title and shall pay the required 8 fee , plus the writing fee specified in section 321I.29 . 9 Sec. 129. Section 321I.34, subsection 1, Code 2023, is 10 amended by adding the following new paragraph: 11 NEW PARAGRAPH . c. The application shall be accompanied by 12 the writing fee specified in section 321I.29. 13 Sec. 130. Section 462A.53, Code 2023, is amended to read as 14 follows: 15 462A.53 Amount of writing fees. 16 A writing fee of one dollar and twenty-five cents two dollars 17 for each privilege shall be collected by the county recorder. 18 Sec. 131. Section 462A.77, subsection 4, Code 2023, is 19 amended to read as follows: 20 4. Every owner of a vessel subject to titling under this 21 chapter shall apply to the county recorder for issuance of a 22 certificate of title for the vessel within thirty days after 23 acquisition. The application shall be on forms the department 24 prescribes, and accompanied by the required fee specified 25 in section 462A.78 and the writing fee specified in section 26 462A.53 . The application shall be signed and shall include a 27 certification signed in writing containing substantially the 28 representation that statements made are true and correct to the 29 best of the applicants knowledge, information, and belief, 30 under penalty of perjury. The application shall contain 31 the date of sale and gross price of the vessel or the fair 32 market value if no sale immediately preceded the transfer, and 33 any additional information the department requires. If the 34 application is made for a vessel last previously registered or 35 -55- LSB 2550XC (7) 90 md/jh 55/ 75
S.F. _____ titled in another state or foreign country, it shall contain 1 this information and any other information the department 2 requires. 3 Sec. 132. Section 462A.82, subsections 1 and 2, Code 2023, 4 are amended to read as follows: 5 1. If ownership of a vessel is transferred by operation of 6 law, such as by inheritance, order in bankruptcy, insolvency, 7 replevin, execution sale, or in compliance with section 578A.7 , 8 the transferee, within thirty days after acquiring the right 9 to possession of the vessel by operation of law, shall mail or 10 deliver to the county recorder satisfactory proof of ownership 11 as the county recorder requires, together with an application 12 for a new certificate of title, and the required fee , plus the 13 writing fee specified in section 462A.53 . However, if the 14 transferee is the surviving spouse of the deceased owner, the 15 county recorder shall waive the required fee fees . A title tax 16 is not required on these transactions. 17 2. If a lienholder repossesses a vessel by operation of 18 law and holds it for resale, the lienholder shall secure a new 19 certificate of title and shall pay the required fee , plus the 20 writing fee specified in section 462A.53 . 21 Sec. 133. Section 462A.84, subsection 1, Code 2023, is 22 amended by adding the following new paragraph: 23 NEW PARAGRAPH . c. The application shall be accompanied by 24 the writing fee specified in section 462A.53. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanations substance by the members of the general assembly. 28 This bill relates to local government property taxes, 29 financial authority, and budgets, requires certain information 30 related to property taxation to be provided to property 31 owners and taxpayers, modifies provisions relating to fees 32 for drivers licenses and nonoperators identification cards, 33 modifying provisions relating to certain writing fees, and 34 modifies certain transit funding, property tax credits and 35 -56- LSB 2550XC (7) 90 md/jh 56/ 75
S.F. _____ exemptions, and appropriations. 1 DIVISION I COUNTY PROPERTY TAXES AND BUDGETS. Code 2 section 331.301(10) governs a countys authority to enter into 3 leases and lease-purchase contracts and, in part, subjects 4 leases and lease-purchase agreements for real property to 5 procedures for approval at an election following a petition 6 if the principal amount of the contract exceeds specified 7 thresholds categorized by county population. The bill 8 increases the thresholds for each category by 30 percent. 9 The bill similarly increases a threshold relating to when a 10 lease or lease-purchase contract is not subject to approval 11 procedures similar to essential county purposes bonds. 12 Code section 331.402(3) governs a countys authority 13 to enter into loan agreements and, in part, subjects loan 14 agreements for real property to procedures for approval at 15 an election following a petition if the principal amount of 16 the contract exceeds specified thresholds categorized by 17 county population. The bill increases the thresholds for each 18 category by 30 percent. 19 Code section 331.403 requires each county to prepare and 20 file an annual financial report. The bill requires that 21 beginning with the annual financial report filed by December 22 1, 2024, each such report shall include a list of bonds, 23 notes, or other obligations issued by the county during the 24 preceding fiscal year payable from any source, including the 25 amount of the issuance, the project or purpose of the issuance, 26 whether the issuance was approved at election, eligible to 27 be subject to a petition for an election, or was exempt from 28 approval at election as the result of statutory exclusions 29 based on population of the county or amount of the issuance, 30 and identification of issuances from the fiscal year or prior 31 fiscal years related to the same project or purpose. 32 Code section 331.423 establishes a levy rate limitation 33 for the general county services levy of $3.50 per $1,000 34 of assessed value of taxable property in the county and a 35 -57- LSB 2550XC (7) 90 md/jh 57/ 75
S.F. _____ limitation for the rural county services levy of $3.95 per 1 $1,000 of assessed value of taxable property in the county. 2 The bill modifies the general county services levy rate 3 limitation for the fiscal year beginning July 1, 2024, to 4 be a levy rate not to exceed the sum of $3.50 plus the levy 5 rate for general county services under Code section 331.426, 6 Code 2023, for the fiscal year beginning July 1, 2023. The 7 bill then provides that for each fiscal year beginning on or 8 after July 1, 2025, the general county services levy rate 9 limitation is the greater of $3.50 per $1,000 of taxable value 10 and the limitation determined for the preceding fiscal year, 11 as adjusted under the bill. If the total assessed value used 12 to calculate taxes for general county services for the budget 13 year exceeds 103.25 percent of the total assessed value used 14 to calculate taxes for the current fiscal year, the levy rate 15 amount per $1,000 for the preceding fiscal year, if applicable, 16 shall be reduced to a rate that is equal to 1,000 multiplied 17 by the quotient of the current fiscal years actual property 18 tax dollars certified for levy divided by 103.25 percent of the 19 total assessed value used to calculate taxes for the current 20 fiscal year. 21 In addition to that levy limitation, for fiscal years 22 beginning on or after July 1, 2025, if the countys actual 23 levy rate for general county services for the current fiscal 24 year is $3.50 or less per $1,000 of assessed value and the 25 total assessed value used to calculate taxes for the budget 26 year exceeds 102.5 percent of the total assessed value used to 27 calculate taxes for the current fiscal year, the levy rate for 28 general county services for the budget year shall not exceed 29 the rate per $1,000 of assessed value that is equal to 1,000 30 multiplied by the quotient of the current fiscal years actual 31 property tax dollars certified for levy for general county 32 services divided by 102.5 percent of the total assessed value 33 used to calculate taxes for the current fiscal year. 34 The bill similarly modifies the maximum levy rate for rural 35 -58- LSB 2550XC (7) 90 md/jh 58/ 75
S.F. _____ county services for the fiscal year beginning July 1, 2024, to 1 be a levy rate equal to the sum of $3.95 plus the rate levied 2 for rural county services under section 331.426, Code 2023, for 3 the fiscal year beginning July 1, 2023. For each fiscal year 4 beginning on or after July 1, 2025, the maximum levy rate is 5 the greater of $3.95 and the levy rate for the preceding fiscal 6 year as adjusted under the bill. The bill provides that if the 7 total assessed value used to calculate taxes for rural county 8 services for the budget year exceeds 103.25 percent of the 9 total assessed value used to calculate taxes for the current 10 fiscal year, the levy rate, as previously adjusted under the 11 bill, if applicable, shall be reduced to a rate that is equal 12 to 1,000 multiplied by the quotient of the current fiscal 13 years actual property tax dollars certified for levy for rural 14 county services divided by 103.25 percent of the total assessed 15 value used to calculate taxes for the current fiscal year. 16 In addition to that levy limitation, for fiscal years 17 beginning on or after July 1, 2025, if the countys actual 18 levy rate for rural county services for the current fiscal 19 year is $3.95 or less per $1,000 of assessed value and the 20 total assessed value used to calculate taxes for the budget 21 year exceeds 102.5 percent of the total assessed value used 22 to calculate taxes for the current fiscal year, the levy 23 rate for rural county services for the budget year shall not 24 exceed the rate per $1,000 of assessed value that is equal to 25 1,000 multiplied by the quotient of the current fiscal years 26 actual property tax dollars certified for levy for rural county 27 services divided by 102.5 percent of the total assessed value 28 used to calculate taxes for the current fiscal year. 29 Code section 331.426 authorizes a county experiencing 30 unusual circumstances, including increases in population, 31 natural disaster or emergency, problems relating to major 32 new functions required by state law, staffing problems, need 33 for additional moneys to continue certain programs, need for 34 new county programs that provide a substantial benefit to 35 -59- LSB 2550XC (7) 90 md/jh 59/ 75
S.F. _____ residents, and reduced or unusually low growth rate in the 1 county, to levy additional property taxes for general county 2 services or rural county services. If the county imposed such 3 levies in the fiscal year beginning July 1, 2023, the bill 4 increases the countys applicable general services levy rate 5 authority by such levy rate amounts as previously described. 6 The bill repeals Code section 331.426. 7 Code section 331.425 provides that a board of supervisors 8 may certify an addition to a levy in excess of the amounts 9 otherwise permitted under Code sections 331.423, 331.424, and 10 331.426 if the proposition to certify an addition to a levy 11 has been submitted at a special levy election and received 12 a favorable majority of the votes cast on the proposition. 13 The bill removes reference to Code section 331.426, which is 14 repealed in the bill, and provides that if the addition to 15 a levy approved under Code section 331.425 is due to unusual 16 circumstances resulting from the following, the duration of 17 such approval at election shall not exceed the following period 18 of years: (1) unusual problems relating to major new functions 19 required by state law, three years; and (2) unusual need for a 20 new program which will provide substantial benefit to county 21 residents, if the county establishes the need and the amount 22 of necessary increased cost, one year. In addition, for 23 elections to approve additions to a levy for such reasons or 24 as the result of a natural disaster, the ballot shall include 25 additional information relating to the major reasons for the 26 addition. 27 Code section 331.441(2)(b) defines essential county 28 purpose to include public buildings, including the site 29 or grounds of, and the erection, equipment, remodeling, 30 or reconstruction of, and additions or extensions to the 31 buildings, and including the provision and maintenance of 32 juvenile detention or shelter care facilities, when the 33 cost does not exceed specified thresholds based on county 34 population. The bill increases each of the threshold amounts 35 -60- LSB 2550XC (7) 90 md/jh 60/ 75
S.F. _____ by 30 percent. 1 The bill strikes [a]ny other purpose which is necessary for 2 the operation of the county or the health and welfare of its 3 citizens from the definition of general county purpose under 4 Code section 331.441(2)(c). 5 Code section 331.442 governs county procedures for the 6 issuance of general county purpose bonds. In lieu of calling 7 an election, the board of supervisors may institute proceedings 8 for the issuance of bonds for a general county purpose by 9 publishing a notice of the proposal to issue the bonds, 10 including a statement of the amount and purpose of the bonds, 11 and the right to petition for an election if the amount of the 12 bonds is less than specified threshold amounts based on county 13 population. The bill increases each of the threshold amounts 14 by 30 percent. 15 The bill also requires a notice of proposal to issue general 16 obligation bonds by a county to include an estimate of the 17 annual increase in property taxes as the result of the bond 18 issuance on a residential property with an actual value of 19 $100,000. 20 Division I of the bill takes effect July 1, 2024, and applies 21 to county taxes and budgets for fiscal years beginning on or 22 after July 1, 2024. 23 DIVISION II CITY PROPERTY TAXES. Code section 384.1 24 establishes the city general fund levy and limits the levy rate 25 on property that is not used and assessed for agricultural or 26 horticultural purposes at $8.10 per $1,000 of taxable value. 27 This bill modifies the levy rate limit for the fiscal year 28 beginning July 1, 2024, to not exceed the sum of $8.10 plus the 29 following for the applicable city: (1) the levy rate under 30 Code section 384.8, Code 2023, for the fiscal year beginning 31 July 1, 2023; (2) the total levy rate levied by or on behalf 32 of the city under Code section 384.12, subsections 1, 2, 3, 4, 33 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, and 20, Code 2023, for the 34 fiscal year beginning July 1, 2023; and (3) the levy rate of 35 -61- LSB 2550XC (7) 90 md/jh 61/ 75
S.F. _____ the city under Code section 24.48, Code 2023, for the fiscal 1 year beginning July 1, 2023. 2 For each fiscal year beginning on or after July 1, 2025, a 3 citys tax levy rate for the general fund, except for levies 4 authorized in Code section 384.12, shall not exceed in any tax 5 year the greater of $8.10 per $1,000 and the amount determined 6 under the bill for the prior year, as adjusted under the bill. 7 The bill provides that if the total assessed value used to 8 calculate taxes for the budget year exceeds 103.25 percent 9 of the total assessed value used to calculate taxes for the 10 current fiscal year, the levy rate, as previously adjusted 11 under the bill, if applicable, shall be reduced to a rate that 12 is equal to 1,000 multiplied by the quotient of the current 13 fiscal years actual property tax dollars certified for levy 14 under Code section 384.1 divided by 103.25 percent of the total 15 assessed value used to calculate taxes for the current fiscal 16 year. 17 In addition to that levy limitation, for fiscal years 18 beginning on or after July 1, 2025, if the citys actual levy 19 rate for the general fund for the current fiscal year is $8.10 20 or less per $1,000 of assessed value and the total assessed 21 value used to calculate taxes for the budget year exceeds 102.5 22 percent of the total assessed value used to calculate taxes 23 for the current fiscal year, the levy rate for the general 24 fund for the budget year shall not exceed the rate per $1,000 25 of assessed value that is equal to 1,000 multiplied by the 26 quotient of the current fiscal years actual property tax 27 dollars certified for levy under Code section 384.1 divided by 28 102.5 percent of the total assessed value used to calculate 29 taxes for the current fiscal year. 30 Code section 384.12 authorizes a city to levy various 31 other additional taxes that under current law are not subject 32 to the $8.10 levy limit. The bill strikes several of the 33 purposes for which a city may levy an additional tax and if 34 the county imposed such levies in the fiscal year beginning 35 -62- LSB 2550XC (7) 90 md/jh 62/ 75
S.F. _____ July 1, 2023, increases the countys general services levy rate 1 authority under Code section 384.1 by such levy rate amounts 2 as previously described. 3 Code section 24.48, in part, authorizes a city with a reduced 4 property tax base or unusually low growth rate or experiencing 5 unusual circumstances, including increases in population, 6 natural disaster or emergency, problems relating to major new 7 functions required by state law, staffing problems, need for 8 additional moneys to continue certain programs, and need for 9 new programs that provide a substantial benefit to residents, 10 to appeal to the state appeal board to suspend levy limitations 11 and levy additional property taxes. The bill provides that for 12 budgets for fiscal years beginning on or after July 1, 2024, 13 suspension of the statutory property tax levy limitations for a 14 city shall only be approved for a natural disaster, problems 15 relating to major new functions required by state law, or a 16 need for new programs that provide a substantial benefit to 17 residents. 18 The bill repeals Code section 384.8, which authorizes a 19 $0.27 city emergency fund levy and makes corresponding changes 20 to other provisions of law relating to the modification of city 21 supplemental property tax levies and the citys general fund 22 levy under Code section 384.1. 23 Code section 384.22 requires each city to prepare and 24 publish an annual financial report. The bill requires that 25 beginning with the annual financial report published by 26 December 1, 2024, each such report shall include a list of 27 bonds, notes, or other obligations issued by the city during 28 the preceding fiscal year payable from any source, including 29 the amount of the issuance, the project or purpose of the 30 issuance, whether the issuance was approved at election, 31 eligible to be subject to a petition for an election, or was 32 exempt from approval at election as the result of statutory 33 exclusions based on population of the city or amount of the 34 issuance, and identification of issuances from the fiscal year 35 -63- LSB 2550XC (7) 90 md/jh 63/ 75
S.F. _____ or prior fiscal years related to the same project or purpose. 1 The bill strikes [a]ny other purpose which is necessary 2 for the operation of the city or the health and welfare of its 3 citizens from the definition of general corporate purpose 4 under Code section 384.24(4). 5 Code section 384.24A(4) governs a citys authority to enter 6 into loan agreements and, in part, subjects loan agreements 7 for real property to procedures for approval at an election 8 following a petition if the principal amount of the contract 9 exceeds specified thresholds categorized by city population. 10 The bill increases the contract amount thresholds for each 11 category by 30 percent. 12 Code section 384.26 governs city procedures for the issuance 13 of city general corporate purpose bonds. In lieu of calling an 14 election, the city council may institute proceedings for the 15 issuance of bonds for a general corporate purpose by publishing 16 a notice of the proposal to issue the bonds, including a 17 statement of the amount and purpose of the bonds, and the right 18 to petition for an election if the amount of the bonds is less 19 than specified threshold amounts based on city population. The 20 bill increases each of the threshold amounts by 30 percent. 21 The bill also requires a notice of proposal to issue general 22 obligation bonds by a city to, among other information related 23 to the issuance, include an estimate of the annual increase 24 in property taxes as the result of the bond issuance on a 25 residential property with an actual value of $100,000. 26 Division II takes effect July 1, 2024, and applies to taxes 27 and budgets for fiscal years beginning on or after July 1, 28 2024. 29 DIVISION III PUBLIC EDUCATION AND RECREATIONAL TAX LEVY. 30 Code chapter 300 authorizes the imposition of a voter-approved 31 property tax levy for the establishment and maintenance 32 of public recreation places and playgrounds, and necessary 33 accommodations for the recreation places and playgrounds, in 34 the public school buildings and grounds of the district. Code 35 -64- LSB 2550XC (7) 90 md/jh 64/ 75
S.F. _____ chapter 300 also authorizes each school board to cooperate 1 with public or private agencies having custody and management 2 of public parks or buildings or grounds open to the public 3 for the supervision and instruction necessary to carry on 4 public educational and recreational activities in the parks, 5 buildings, and grounds located within the district. Such 6 activities may be supported by imposition of a voter-approved 7 property tax levy not to exceed 13.5 cents per $1,000 of 8 assessed value. The property tax levy under Code chapter 300 9 also provides financial support to community education programs 10 established under Code chapter 276, which provide educational, 11 recreational, cultural, and other community services and 12 programs. 13 The bill repeals Code chapter 300 and makes corresponding 14 amendments to other provisions of law effective July 1, 2027, 15 and applies to fiscal years beginning on or after July 1, 16 2027. The bill provides that financial support for a community 17 education program under Code chapter 276 may be provided from 18 funds received by the school district under Code chapter 423F. 19 By operation of the definition of school infrastructure under 20 Code section 423F.3(6)(a)(1), moneys received by a school 21 district from the secure an advanced vision for education fund 22 may continue to be utilized for activities previously provided 23 for under Code chapter 300 and Code chapter 276. 24 The bill prohibits a levy under Code chapter 300 from being 25 approved at election on or after the effective date of the 26 provision in the bill, which is effective upon enactment, and 27 limits the rate at which previously approved levies can be 28 imposed for the fiscal year beginning July 1, 2026. 29 The bill also provides that moneys available in the public 30 education and recreation levy fund at the conclusion of the 31 fiscal year beginning July 1, 2026, and ending June 30, 2026, 32 shall be expended by the school corporation for the purposes 33 authorized under Code chapter 300, Code 2023. 34 DIVISION IV BRUCELLOSIS AND TUBERCULOSIS ERADICATION 35 -65- LSB 2550XC (7) 90 md/jh 65/ 75
S.F. _____ FUND LEVY. Code section 165.18 authorizes the secretary of 1 agriculture to direct the board of supervisors of each county 2 to levy an amount sufficient to pay the expenses estimated to 3 be incurred from the brucellosis and tuberculosis eradication 4 fund for the following fiscal year, subject to a maximum levy 5 of 33.75 cents per $1,000. The bill strikes the authority to 6 levy such a tax beginning with property taxes due and payable 7 in fiscal years beginning July 1, 2024. 8 DIVISION V COUNTY SEATS. The bill specifies that pursuant 9 to the general grant of home rule power conferred by the 10 Constitution of the State of Iowa and if not inconsistent with 11 the laws of the general assembly, a county that has designated 12 more than one city to be a county seat may consolidate or 13 reduce the number of county seats by ordinance. The bill also 14 repeals 1848 Iowa Acts, First Extraordinary Session, chapter 15 52, which in part required Lee County to maintain a district 16 court at Fort Madison and the city of Keokuk, required the 17 clerk of district court to keep an office at Fort Madison and 18 the city of Keokuk, and required the sheriff of Lee County to 19 keep an office at Fort Madison and the city of Keokuk. 20 Division V of the bill takes effect upon enactment. 21 DIVISION VI COUNTY SHERIFF FEE REPORT. The bill strikes 22 the provision of Code section 331.655 that requires an annual 23 report from the Iowa state sheriffs and deputies association 24 that details, based on a sampling of specified county data, the 25 total annual county budget allocation to the sheriff to fulfill 26 those duties for which the sheriff is required to collect 27 certain fees, the average cost per service, summons, execution, 28 or other activity by activity category, the revenue generated 29 by collection of those fees by category, and the associated 30 impact on property taxes for each county to fulfill those 31 duties for which the sheriff is required to collect such fees. 32 DIVISION VII HOMESTEAD PROPERTY TAX CREDIT. Code chapter 33 425 establishes a homestead property tax credit in an amount 34 equal to the property tax levy on the first $4,850 of actual 35 -66- LSB 2550XC (7) 90 md/jh 66/ 75
S.F. _____ value. The homestead credit is paid for from the homestead 1 credit fund under Code section 425.1 for which there is an 2 annual appropriation for an amount sufficient to implement the 3 credit. 4 The bill establishes a homestead property tax exemption 5 for owners 65 or older that is in addition to the homestead 6 credit. For the assessment year beginning January 1, 2024, the 7 exemption amount is $3,250. For the assessment year beginning 8 January 1, 2025, and each succeeding assessment year, the 9 exemption amount is $6,500. 10 Code section 25B.7 provides that if a state appropriation 11 made to fund a credit or exemption is not sufficient to fully 12 fund the credit or exemption, the political subdivision shall 13 be required to extend to the taxpayer only that portion of the 14 credit or exemption estimated by the department of revenue to 15 be funded by the state appropriation. The bill provides that 16 the general requirement of Code section 25B.7 for property tax 17 credits and exemptions does not apply to the homestead property 18 tax exemption established in the bill. 19 The bill makes corresponding changes to various other 20 provisions of the Code relating to and referencing the 21 homestead property tax credit. 22 The bill provides that homestead credit claims approved 23 prior to and valid on the effective date of the division shall 24 result in a homestead tax exemption under Code chapter 425, 25 subchapter I, as enacted in the division, without further 26 filing by the claimant if the assessor has the information to 27 verify eligibility for the exemption. 28 Division VII applies to assessment years beginning on or 29 after January 1, 2024. 30 DIVISION VIII ELDERLY PROPERTY TAX CREDIT. The 31 bill amends Code section 423.23 to modify part of the 32 calculation for the elderly property tax credit to account 33 for the homestead credit for the property under Code section 34 425.1. The division takes effect upon enactment and applies 35 -67- LSB 2550XC (7) 90 md/jh 67/ 75
S.F. _____ retroactively to claims for the credit filed on or after 1 January 1, 2022. 2 DIVISION IX MILITARY SERVICE PROPERTY TAX EXEMPTION AND 3 CREDIT. Division VII relates to the military service property 4 tax exemption and credit. Under current law, veterans of World 5 War I are entitled to a property tax exemption of $2,778 in 6 taxable value and honorably discharged veterans who served 7 during other specific time periods are entitled to a property 8 tax exemption of $1,852 in taxable value. The bill increases 9 the exemption amount for all eligible veterans to $4,000 for 10 assessment years beginning on or after January 1, 2024. 11 Under current law, the state provides funding to local 12 governments for the military service property tax exemption and 13 credit up to $6.92 per $1,000 of assessed value of the exempt 14 property. The bill eliminates funding for the credit starting 15 with the fiscal year beginning July 1, 2025. 16 Code section 25B.7 provides that if a state appropriation 17 made to fund a credit or exemption is not sufficient to fully 18 fund the credit or exemption, the political subdivision shall 19 be required to extend to the taxpayer only that portion of the 20 credit or exemption estimated by the department of revenue to 21 be funded by the state appropriation. The requirement for 22 fully funding and the consequences of not fully funding under 23 Code section 25B.7 applies to the military service property 24 tax credit and exemption to the extent of $6.92 per $1,000 25 of assessed value of the exempt property. The bill strikes 26 the portion of Code section 25B.7 that makes the requirement 27 for fully funding and the consequences of not fully funding 28 applicable to the military service property tax credit and 29 exemption and provides that the general requirement of Code 30 section 25B.7 for property tax credits and exemptions does not 31 apply to the military property tax exemption established in the 32 bill. 33 The division applies to assessment years beginning on or 34 after January 1, 2024. 35 -68- LSB 2550XC (7) 90 md/jh 68/ 75
S.F. _____ DIVISION X PROPERTY TAX BENEFITS AND INCENTIVES. The bill 1 amends Code chapter 404 (urban revitalization areas) to provide 2 that for revitalization areas established on or after the 3 effective date of the division and for first-year property tax 4 exemption applications for property located in a revitalization 5 area in existence on the effective date of the division filed 6 on or after the effective date of the division, commercial 7 property shall not receive a tax exemption under Code chapter 8 404 unless the city or county, as applicable, and the owner 9 of the qualified real estate enter into a written assessment 10 agreement specifying a minimum actual value until a specified 11 termination date for the duration of the exemption period. 12 The bill also establishes limitations on exemptions for 13 residential property within revitalization areas. For 14 revitalization areas established on or after the effective date 15 of the division and for first-year exemption applications for 16 property located in a revitalization area in existence on the 17 effective date of the division filed on or after the effective 18 date of the division, an exemption under Code chapter 404 19 for property that is residential property shall not apply to 20 property tax levies imposed by a school district. 21 Division X of the bill takes effect July 1, 2024. 22 DIVISION XI TRANSIT FUNDING. Cities may grant various 23 types of franchises for specified services under Code section 24 362.4 and may generally impose a franchise fee based upon 25 a percentage of gross revenues generated from sales of the 26 franchisee within the city not to exceed 5 percent. An 27 exception allowing for a franchise fee up to 7.5 percent exists 28 in specified circumstances for a period of fiscal years ending 29 July 1, 2030, if approved at election. The bill strikes 30 the provisions providing for that exception and establishes 31 conditions under which a city with a population that exceeds 32 200,000 may impose a franchise fee of up to 7.5 percent for 33 fiscal years beginning on or after July 1, 2024. The bill 34 requires that franchise fee amounts collected during such 35 -69- LSB 2550XC (7) 90 md/jh 69/ 75
S.F. _____ fiscal years in excess of 5 percent of gross revenues generated 1 from sales shall be used solely for the reduction of property 2 tax levies used to support the operation and maintenance of a 3 municipal transit system or a regional transit district or to 4 maintain transportation service levels of a municipal transit 5 system or a regional transit district. 6 The division of the bill takes effect July 1, 2024. 7 DIVISION XII COUNTY AUDITOR VALUATION REPORTS. Code 8 section 331.510, in part, requires the county auditor to 9 make an annual report to the department of management of the 10 valuation by class of property for each taxing district in the 11 county, which shall be used for determining the levy rates 12 necessary to fund the budgets of the taxing districts for the 13 following fiscal year. In addition, the county auditor is 14 required to make an annual report to the governing body of 15 each taxing district in the county of the assessed valuations 16 of taxable property in the taxing district as reported to the 17 department of management. 18 The bill requires both such annual reports for assessment 19 years beginning on or after January 1, 2024, to distinguish 20 such values as revaluation or other type of addition to value, 21 as defined and submitted in the assessors abstract transmitted 22 to the department of revenue under Code section 441.45. 23 DIVISION XIII LOCAL GOVERNMENT BUDGETS AND TAXPAYER 24 STATEMENTS. The division relates to the approval of city, 25 county, and school district budgets. 26 Current law establishes budget certification deadlines 27 for various political subdivisions, including March 31 for 28 counties and cities, April 15 for school districts, and March 29 15 for townships and other political subdivisions subject to 30 the budget approval procedures of Code chapter 24. The bill 31 modifies the budget certification deadline for counties and 32 cities to be April 15. 33 The bill enacts a requirement for certain political 34 subdivisions (school districts, cities, and counties) to take 35 -70- LSB 2550XC (7) 90 md/jh 70/ 75
S.F. _____ additional steps in preparing their annual budgets. Under 1 the bill, on or before February 27 of each year, each such 2 political subdivision is required to file with the county 3 auditor a report containing all necessary information for the 4 county auditor to calculate certain amounts required to be 5 included in individual statements mailed by the county auditor 6 to each property owner or taxpayer within the county not later 7 than March 1. Each individual statement must contain all of 8 the following for each of the political subdivisions comprising 9 the owners or taxpayers taxing district: (1) the sum of 10 the current fiscal years actual property taxes certified 11 for levy for all of the political subdivisions levies and 12 the combined property tax rate for such tax amount for the 13 current fiscal year; (2) the combined effective property tax 14 rate for the political subdivision for all of the political 15 subdivisions levies; (3) the combined amount of the proposed 16 property tax dollars to be certified for all of the political 17 subdivisions levies and the proposed combined property tax 18 rate for such levies; (4) if the proposed combined property 19 tax dollars exceeds the current fiscal years actual combined 20 property tax dollars certified for levy, a detailed statement 21 of the major reasons for the increase, including the specific 22 purposes or programs for which the political subdivision is 23 proposing an increase; (5) an example comparing the amount of 24 property taxes on a residential property with an actual value 25 of $100,000 in the current fiscal year and such amount on the 26 residential property using the proposed property tax dollars 27 for the budget year; (6) an example comparing the amount of 28 property taxes on a commercial property with an actual value 29 of $100,000 in the current fiscal year and such amount on the 30 commercial property using the proposed property tax dollars for 31 the budget year; (7) the political subdivisions percentage 32 of total property taxes certified for levy in the owners or 33 taxpayers taxing district in the current fiscal year among all 34 taxing authorities; (8) the date, time, and location of the 35 -71- LSB 2550XC (7) 90 md/jh 71/ 75
S.F. _____ public hearing required under the bill; and (9) information on 1 how to access on the political subdivisions internet site the 2 political subdivisions statements under the new Code section 3 and other budget documents for prior fiscal years. 4 Each political subdivision is also required to conduct 5 a public hearing on its proposed property tax amount for 6 the budget year and the political subdivisions information 7 included in the individual statements. The date of the 8 political subdivisions public hearing shall not be on the 9 same date of the public hearing under the bill of another 10 political subdivision with which the political subdivision 11 shares territory. At the hearing, the governing body of 12 the political subdivision is required to receive oral or 13 written testimony from any resident or property owner of the 14 political subdivision. This public hearing must be separate 15 from any other meeting of the governing body of the political 16 subdivision, including any other meeting or public hearing 17 relating to the political subdivisions budget, and other 18 business of the political subdivision that is not related to 19 the proposed property tax amounts and the information in the 20 statements shall not be conducted at the public hearing. After 21 all testimony has been received and considered, the governing 22 body may decrease, but not increase, the proposed property tax 23 amount to be included in the political subdivisions budget. 24 Notice of the public hearing must also be published in a 25 newspaper, posted on the political subdivisions internet site, 26 and, if the political subdivision maintains a social media 27 account, post the public hearing notice or an electronic link 28 to the public hearing notice on each such account. 29 The bill repeals Code sections 331.433A and 384.15A, 30 applicable to the approval of county and city budgets. 31 The bill makes corresponding changes to other Code chapters 32 relating to county and city budgets. 33 The bill makes penalties applicable by operation of Code 34 section 24.24, which provides, in part, that failure on 35 -72- LSB 2550XC (7) 90 md/jh 72/ 75
S.F. _____ the part of a public official to perform any of the duties 1 prescribed in Code chapter 24 constitutes a simple misdemeanor, 2 and is sufficient ground for removal from office. A simple 3 misdemeanor is punishable by confinement for no more than 30 4 days and a fine of at least $105 but not more than $855. 5 The division may include a state mandate as defined in 6 Code section 25B.3. The division makes inapplicable Code 7 section 25B.2, subsection 3, which would relieve a political 8 subdivision from complying with a state mandate if funding for 9 the cost of the state mandate is not provided or specified. 10 Therefore, political subdivisions are required to comply with 11 any state mandate included in the division. 12 The division applies to city, county, and school district 13 budgets for fiscal years beginning on or after July 1, 2024. 14 DIVISION XIV DRIVERS LICENSES AND NONOPERATORS 15 IDENTIFICATION CARDS. Current law authorizes certain counties 16 to issue drivers licenses and nonoperators identification 17 cards if the county meets standards set by the department 18 of transportation. A county retains for deposit in the 19 county general fund $7 of fees received for each issuance or 20 renewal of drivers licenses and nonoperators identification 21 cards. The division allows a county authorized to issue 22 drivers licenses to charge a $10 convenience fee for the 23 issuance or renewal of a drivers license or nonoperators 24 identification card to a person who is not a resident of the 25 county. However, the county cannot charge the convenience fee 26 to a nonresident person who pays property tax to the county if 27 the person provides proof that they paid property tax, such as 28 a receipt from the county treasurer or another form of proof 29 as determined by the county. The county treasurer retains the 30 entire convenience fee collected for deposit in the county 31 general fund. 32 DIVISION XV WRITING FEES. The division relates to writing 33 fees required for certain all-terrain vehicle, snowmobile, and 34 water vessel transactions completed by a county recorder. 35 -73- LSB 2550XC (7) 90 md/jh 73/ 75
S.F. _____ WATER VESSELS. Under current law, a county recorder 1 collects a writing fee of $1.25 for each privilege under 2 Code chapter 462A (water navigation regulations). A writing 3 fee is paid by the boat owner to the county recorder for 4 handling the transaction. The writing fee is specifically 5 required with applications for registration, including new 6 or duplicate certificates of registration (Code section 7 462A.5). The writing fee is also specifically required for 8 transfers of ownership of vessels with an expired registration, 9 due when the transferee pays all applicable fees for the 10 current registration period (Code section 462A.43), and with 11 applications for transfer (Code section 462A.44). The writing 12 fee is not specifically mentioned for applications for issuance 13 of a certificate of title (Code section 462A.77), which 14 requires the application to be accompanied by the required 15 fee. The required fee for issuance of a certificate of title, 16 a transfer of title, a duplicate, or a corrected certificate 17 of title is $5 plus a surcharge of $5 (Code section 462A.78). 18 Likewise, the writing fee is not specifically mentioned for 19 perfection of a security interest, for which the application 20 fee is $5 (Code section 462A.84). The bill specifies that 21 applications for a certificate of title or perfection of a 22 security interest are subject to the writing fee. The bill 23 increases the writing fee from $1.25 to $2. 24 SNOWMOBILES AND ALL-TERRAIN VEHICLES. In contrast to 25 water vessels, the writing fee provisions for snowmobiles and 26 all-terrain vehicles explicitly impose the $1.25 writing fee 27 only for registration or renewal, user permits, and duplicate 28 special registration certificates (Code sections 321G.27 and 29 321I.29). The bill alters these provisions to instead apply 30 to each privilege under the respective Code chapter, and 31 specifies that applications for a certificate of title or 32 perfection of a security interest are subject to the writing 33 fee. The bill increases the writing fee from $1.25 to $2. 34 Current law provides that a license agent shall collect a 35 -74- LSB 2550XC (7) 90 md/jh 74/ 75
S.F. _____ writing fee of $1 for each snowmobile or all-terrain vehicle 1 registration or renewal and for the sale of each user permit. 2 The bill does not amend these provisions. 3 -75- LSB 2550XC (7) 90 md/jh 75/ 75