Bill Text: IA HF2434 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to budget approval processes of political subdivisions and including applicability provisions.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2022-02-16 - Introduced, referred to Ways and Means. H.J. 279. [HF2434 Detail]
Download: Iowa-2021-HF2434-Introduced.html
House
File
2434
-
Introduced
HOUSE
FILE
2434
BY
GERHOLD
,
BRADLEY
,
and
DUNWELL
A
BILL
FOR
An
Act
relating
to
budget
approval
processes
of
political
1
subdivisions
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
24.9,
subsection
1,
Code
2022,
is
amended
1
to
read
as
follows:
2
1.
a.
Each
municipality
shall
file
with
the
secretary
or
3
clerk
thereof
the
estimates
required
to
be
made
in
sections
4
24.3
to
24.8
,
at
least
twenty
days
before
the
date
fixed
by
5
law
for
certifying
the
same
to
the
levying
board
and
shall
6
forthwith
fix
a
date
for
a
hearing
thereon,
and
shall
publish
7
such
estimates
and
any
annual
levies
previously
authorized
8
as
provided
in
section
76.2
,
with
a
notice
of
the
time
when
9
and
the
place
where
such
hearing
shall
be
held
not
less
than
10
ten
nor
more
than
twenty
days
before
the
hearing.
The
notice
11
shall
also
include
the
information
required
under
paragraph
12
“c”
,
subparagraph
(2),
subparagraph
divisions
(a)
through
13
(d).
Provided
that
in
municipalities
of
less
than
two
hundred
14
population
such
estimates
and
the
notice
of
hearing
thereon
15
shall
be
posted
in
three
public
places
in
the
district
in
lieu
16
of
publication.
For
any
other
municipality
such
publication
17
shall
be
in
a
newspaper
published
therein,
if
any,
if
not,
then
18
in
a
newspaper
of
general
circulation
therein.
19
b.
The
department
of
management
shall
prescribe
the
form
for
20
public
hearing
notices
for
use
by
municipalities
and
notices
21
required
under
paragraph
“c”
.
22
c.
(1)
For
purposes
of
this
paragraph:
23
(a)
“Budget
year”
is
the
fiscal
year
beginning
during
the
24
calendar
year
in
which
a
budget
is
certified.
25
(b)
“Current
fiscal
year”
is
the
fiscal
year
ending
during
26
the
calendar
year
in
which
a
budget
for
the
budget
year
is
27
certified.
28
(c)
“Effective
property
tax
rate”
means
the
property
tax
29
rate
per
one
thousand
dollars
of
assessed
value
and
is
equal
to
30
one
thousand
multiplied
by
the
quotient
of
the
current
fiscal
31
year’s
actual
property
tax
dollars
certified
for
levy
divided
32
by
the
total
assessed
value
used
to
calculate
taxes
for
the
33
budget
year.
34
(2)
In
addition
to
the
notices
published
and
posted
under
35
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paragraph
“a”
,
the
municipality
shall
direct
the
county
1
treasurer
to
send
to
each
owner
or
taxpayer
by
regular
mail,
2
on
or
before
the
date
of
publication
under
paragraph
“a”
,
an
3
individual
notice
containing
all
of
the
following:
4
(a)
The
sum
of
the
current
fiscal
year’s
actual
property
5
taxes
certified
for
levy
by
the
municipality
and
the
6
municipality’s
current
fiscal
year’s
combined
property
tax
rate
7
for
such
amount.
8
(b)
The
effective
property
tax
rate
calculated
using
the
sum
9
of
the
current
fiscal
year’s
actual
property
taxes
certified
by
10
the
municipality.
11
(c)
The
sum
of
the
proposed
property
tax
dollars
to
be
12
certified
for
levy
by
the
municipality
for
the
budget
year
and
13
the
proposed
combined
property
tax
rate
for
such
amount.
14
(d)
If
the
proposed
property
tax
dollars
specified
under
15
subparagraph
division
(c)
exceeds
the
current
fiscal
year’s
16
actual
property
tax
dollars
certified
for
levy
specified
in
17
subparagraph
division
(a),
a
statement
of
the
major
reasons
for
18
the
increase.
19
(e)
The
assessed
value
of
the
owner’s
or
taxpayer’s
property
20
used
to
calculate
property
taxes
for
the
current
fiscal
year.
21
(f)
The
assessed
value
of
the
owner’s
or
taxpayer’s
property
22
used
to
calculate
property
taxes
for
the
budget
year.
23
(g)
The
amount
of
property
taxes
due
on
the
owner’s
or
24
taxpayer’s
property
for
the
current
fiscal
year
for
the
25
municipality
and
the
current
fiscal
year’s
combined
property
26
tax
rate
for
such
amount.
27
(h)
The
estimated
combined
property
tax
rate
required
to
28
raise
the
amount
of
property
taxes
under
subparagraph
division
29
(g)
using
the
assessed
value
of
the
property
under
subparagraph
30
division
(f).
31
(i)
The
proposed
amount
of
property
taxes
to
be
levied
32
against
the
owner’s
or
taxpayer’s
property
for
the
budget
year
33
for
the
municipality
and
the
estimated
combined
property
tax
34
rate
for
the
budget
year
for
such
amount.
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Sec.
2.
Section
331.433A,
subsection
4,
paragraph
b,
Code
1
2022,
is
amended
to
read
as
follows:
2
b.
Proof
of
publication
shall
be
filed
with
and
preserved
3
by
the
auditor.
The
department
of
management
shall
prescribe
4
the
form
for
the
public
hearing
notice
for
use
by
counties
,
the
5
form
for
individual
notices
provided
under
paragraph
“c”
,
and
6
the
form
for
the
resolution
to
be
adopted
by
the
board
under
7
subsection
5
.
8
Sec.
3.
Section
331.433A,
subsection
4,
Code
2022,
is
9
amended
by
adding
the
following
new
paragraph:
10
NEW
PARAGRAPH
.
c.
In
addition
to
the
notices
published
and
11
posted
under
paragraph
“a”
,
the
county
shall
direct
the
county
12
treasurer
to
send
to
each
owner
or
taxpayer
by
regular
mail,
13
on
or
before
the
date
of
publication
under
paragraph
“a”
,
an
14
individual
notice
containing
the
information
required
under
15
paragraph
“a”
,
subparagraphs
(1)
through
(4),
and
all
of
the
16
following:
17
(1)
The
assessed
value
of
the
owner’s
or
taxpayer’s
property
18
used
to
calculate
property
taxes
for
the
current
fiscal
year.
19
(2)
The
assessed
value
of
the
owner’s
or
taxpayer’s
property
20
used
to
calculate
property
taxes
for
the
budget
year.
21
(3)
The
amount
of
property
taxes
due
on
the
owner’s
or
22
taxpayer’s
property
for
the
current
fiscal
year
for
general
23
county
services
and
rural
county
services
under
the
levies
24
specified
in
subsection
2,
paragraphs
“a”
and
“b”
,
and
the
25
current
fiscal
year’s
combined
property
tax
rate
for
each
such
26
amount.
27
(4)
The
estimated
combined
property
tax
rate
required
to
28
raise
the
amount
of
property
taxes
under
subparagraph
(3)
using
29
the
assessed
value
of
the
property
under
subparagraph
(2).
30
(5)
The
proposed
amount
of
property
taxes
to
be
levied
31
against
the
owner’s
or
taxpayer’s
property
for
the
budget
year
32
for
general
county
services
and
rural
county
services
under
the
33
levies
specified
in
subsection
2,
paragraphs
“a”
and
“b”
,
and
34
the
estimated
combined
property
tax
rate
for
the
budget
year
35
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for
each
such
amount.
1
Sec.
4.
Section
384.15A,
subsection
4,
paragraph
b,
Code
2
2022,
is
amended
to
read
as
follows:
3
b.
Proof
of
publication
shall
be
filed
with
and
preserved
4
by
the
county
auditor.
The
department
of
management
shall
5
prescribe
the
form
for
the
public
hearing
notice
for
use
6
by
cities
,
the
form
for
individual
notices
provided
under
7
paragraph
“c”
,
and
the
form
for
the
resolution
to
be
adopted
by
8
the
council
under
subsection
5
.
9
Sec.
5.
Section
384.15A,
subsection
4,
Code
2022,
is
amended
10
by
adding
the
following
new
paragraph:
11
NEW
PARAGRAPH
.
c.
In
addition
to
the
notices
published
and
12
posted
under
paragraph
“a”
,
the
city
shall
direct
the
county
13
treasurer
to
send
to
each
owner
or
taxpayer
by
regular
mail,
14
on
or
before
the
date
of
publication
under
paragraph
“a”
,
an
15
individual
notice
containing
the
information
required
under
16
paragraph
“a”
,
subparagraphs
(1)
through
(4),
and
all
of
the
17
following:
18
(1)
The
assessed
value
of
the
owner’s
or
taxpayer’s
property
19
used
to
calculate
property
taxes
for
the
current
fiscal
year.
20
(2)
The
assessed
value
of
the
owner’s
or
taxpayer’s
property
21
used
to
calculate
property
taxes
for
the
budget
year.
22
(3)
The
amount
of
property
taxes
due
on
the
owner’s
or
23
taxpayer’s
property
for
the
current
fiscal
year
for
the
city
24
under
the
levies
specified
in
subsection
2
and
the
current
25
fiscal
year’s
combined
property
tax
rate
for
such
amount.
26
(4)
The
estimated
combined
property
tax
rate
required
to
27
raise
the
amount
of
property
taxes
under
subparagraph
(3)
using
28
the
assessed
value
of
the
property
under
subparagraph
(2).
29
(5)
The
proposed
amount
of
property
taxes
to
be
levied
30
against
the
owner’s
or
taxpayer’s
property
for
the
budget
year
31
for
the
city
under
the
levies
specified
in
subsection
2
and
the
32
estimated
combined
property
tax
rate
for
the
budget
year
for
33
such
amount.
34
Sec.
6.
IMPLEMENTATION
OF
ACT.
Section
25B.2,
subsection
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3,
shall
not
apply
to
this
Act.
1
Sec.
7.
APPLICABILITY.
This
Act
applies
to
county,
city,
2
and
political
subdivision
budgets
for
fiscal
years
beginning
on
3
or
after
July
1,
2023.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
relates
to
budget
approval
processes
of
political
8
subdivisions.
9
Under
Code
sections
331.433A
and
384.15A,
each
county
and
10
city
is,
prior
to
filing
of
the
entity’s
proposed
budget,
11
required
to
adopt
a
resolution
establishing,
in
the
case
of
12
a
county,
the
total
maximum
property
tax
dollars
that
may
be
13
certified
for
levy
for
general
county
services
and
the
total
14
maximum
property
tax
dollars
that
may
be
certified
for
levy
for
15
rural
county
services;
and
in
the
case
of
a
city,
the
total
16
maximum
property
tax
dollars
that
may
be
certified
for
the
17
enumerated
city
government
purposes
and
funds.
The
governing
18
body
must
hold
a
public
hearing
on
the
resolution
and
notice
19
of
the
public
hearing
is
required
to
be
published
and
posted
20
on
the
entity’s
internet
site
and
social
media
accounts,
as
21
applicable.
Notice
of
the
hearing
is
required
to
include
22
specified
property
tax
dollar
amounts
and
levy
rates,
including
23
the
effective
tax
rate.
24
The
bill
provides
that
in
addition
to
the
published
and
25
posted
notices
under
Code
sections
331.433A
and
384.15A,
26
the
city
or
county,
as
applicable,
shall
direct
the
county
27
treasurer
to
send
to
each
owner
or
taxpayer
by
regular
mail,
28
an
individual
notice
containing
the
information
required
under
29
the
notice
published
and
posted
and
all
of
the
following:
(1)
30
the
assessed
value
of
the
owner
or
taxpayer’s
property
used
31
to
calculate
property
taxes
for
the
current
fiscal
year;
(2)
32
the
assessed
value
of
the
owner
or
taxpayer’s
property
used
to
33
calculate
property
taxes
for
the
budget
year;
(3)
the
amount
34
of
property
taxes
due
on
the
owner
or
taxpayer’s
property
for
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the
current
fiscal
year
for
the
city
or
county
and
the
current
1
fiscal
year’s
combined
property
tax
rate
for
such
amount;
(4)
2
the
estimated
combined
property
tax
rate
required
to
raise
3
the
amount
of
property
taxes
on
the
property
for
the
current
4
fiscal
year
using
the
assessed
value
of
the
property
for
the
5
budget
year;
and
(5)
the
proposed
amount
of
property
taxes
to
6
be
levied
against
the
owner
or
taxpayer’s
property
for
the
7
budget
year
and
the
estimated
combined
property
tax
rate
for
8
the
budget
year
for
such
amount.
9
The
bill
also
amends
Code
section
24.9
relating
to
the
filing
10
of
budget
estimates
as
part
of
the
budget
approval
process
for
11
municipalities,
which
includes
public
entities
that
have
power
12
to
levy
or
certify
a
tax
or
sum
of
money
to
be
collected
by
13
taxation,
except
a
county,
city,
drainage
district,
township,
14
or
road
district.
The
bill
adds
to
the
notice
required
to
be
15
published
and
posted
regarding
the
public
hearing
under
Code
16
section
24.9
the
information
similarly
required
for
cities
and
17
counties
under
current
Code
sections
331.433A
and
384.15A.
The
18
bill
also
requires
each
municipality
to
send
individual
notices
19
to
each
owner
or
taxpayer
by
regular
mail
that
contain
similar
20
information
to
that
required
to
be
sent
by
counties
and
cities
21
under
the
bill.
22
The
bill
may
include
a
state
mandate
as
defined
in
Code
23
section
25B.3.
The
bill
makes
inapplicable
Code
section
25B.2,
24
subsection
3,
which
would
relieve
a
political
subdivision
from
25
complying
with
a
state
mandate
if
funding
for
the
cost
of
26
the
state
mandate
is
not
provided
or
specified.
Therefore,
27
political
subdivisions
are
required
to
comply
with
any
state
28
mandate
included
in
the
bill.
29
The
bill
applies
to
county,
city,
and
political
subdivision
30
budgets
for
fiscal
years
beginning
on
or
after
July
1,
2023.
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