Bill Text: IA HF718 | 2023-2024 | 90th General Assembly | Enrolled


Bill Title: A bill for an act relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver's licenses and nonoperator's identification cards, modifying provisions relating to certain writing fees, modifying certain bonding procedures, making penalties applicable, and including effective date, applicability, and retroactive applicability provisions. (Formerly HF 1.) Effective date: 05/04/2023, 07/01/2023, 07/01/2024. Applicability date: 01/01/2023, 07/01/2023, 07/01/2024.

Spectrum: Committee Bill

Status: (Passed) 2023-05-24 - Fiscal note. [HF718 Detail]

Download: Iowa-2023-HF718-Enrolled.html
House File 718 - Enrolled House File 718 AN ACT RELATING TO LOCAL GOVERNMENT PROPERTY TAXES, FINANCIAL AUTHORITY, OPERATIONS, AND BUDGETS, MODIFYING CERTAIN TRANSIT FUNDING, PROPERTY TAX CREDITS AND EXEMPTIONS, AND APPROPRIATIONS, REQUIRING CERTAIN INFORMATION RELATED TO PROPERTY TAXATION TO BE PROVIDED TO PROPERTY OWNERS AND TAXPAYERS, MODIFYING PROVISIONS RELATING TO FEES FOR DRIVER’S LICENSES AND NONOPERATOR’S IDENTIFICATION CARDS, MODIFYING PROVISIONS RELATING TO CERTAIN WRITING FEES, MODIFYING CERTAIN BONDING PROCEDURES, MAKING PENALTIES APPLICABLE, AND INCLUDING EFFECTIVE DATE, APPLICABILITY, AND RETROACTIVE APPLICABILITY PROVISIONS. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: DIVISION I COUNTY PROPERTY TAXES AND BUDGETS Section 1. Section 331.422, unnumbered paragraph 1, Code 2023, is amended to read as follows: Subject to this section and sections 331.423 through 331.426 331.425 or as otherwise provided by state law, the board of each county shall certify property taxes annually at its March session to be levied for county purposes as follows: Sec. 2. Section 331.423, Code 2023, is amended to read as follows: 331.423 Basic levies —— maximums —— adjustments . Annually, the board may certify basic levies, subject to the following limits:
House File 718, p. 2 1. For general county services , on all taxable property in the county: a. For fiscal years beginning before July 1, 2024, three dollars and fifty cents per thousand dollars of the assessed value of all taxable property in the county . b. (1) For each fiscal year beginning on or after July 1, 2024, but before July 1, 2028, subject to subparagraph (3), the greater of three dollars and fifty cents per thousand dollars of assessed value used to calculate taxes for general county services for the budget year and the adjusted general county basic levy rate, as adjusted under subparagraph (2), if applicable. (2) (a) If the total assessed value used to calculate taxes for general county services under this paragraph for the budget year exceeds one hundred three percent, but is less than one hundred six percent, of the total assessed value used to calculate taxes for general county services for the current fiscal year, the adjusted general county basic levy rate, as previously adjusted under this subparagraph, if applicable, shall be reduced to a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 divided by one hundred two percent of the total assessed value used to calculate such taxes for the current fiscal year. For the budget year beginning July 1, 2024, only, the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 shall also include property tax dollar amounts levied for general county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. (b) If the total assessed value used to calculate taxes for general county services under this paragraph for the budget year is equal to or exceeds one hundred six percent of the total assessed value used to calculate taxes for general county services for the current fiscal year, the adjusted general county basic levy rate, as previously adjusted under this subparagraph, if applicable, shall be reduced to a rate per thousand dollars of assessed value that is equal to one
House File 718, p. 3 thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 divided by one hundred three percent of the total assessed value used to calculate such taxes for the current fiscal year. For the budget year beginning July 1, 2024, only, the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 shall also include property tax dollar amounts levied for general county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. (3) (a) (i) In addition to the limitation under subparagraph (2), if the county’s actual levy rate imposed under this subsection 1 for the current fiscal year is three dollars and fifty cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes for general county services under this paragraph for the budget year exceeds one hundred three percent, but is less than one hundred six percent, of the total assessed value used to calculate taxes for general county services for the current fiscal year, the levy rate imposed under this subsection 1 for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 divided by one hundred two percent of the total assessed value used to calculate taxes for general county services for the current fiscal year. (ii) For the budget year beginning July 1, 2024, only, the county’s actual levy rate imposed under this subsection 1 for the current fiscal year shall also include the amount per thousand dollars of assessed value levied for general county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023, and the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 shall also include amounts levied for general county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. (b) (i) In addition to the limitation under subparagraph (2), if the county’s actual levy rate imposed under this
House File 718, p. 4 subsection 1 for the current fiscal year is three dollars and fifty cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes for general county services under this paragraph for the budget year is equal to or exceeds one hundred six percent of the total assessed value used to calculate taxes for general county services for the current fiscal year, the levy rate imposed under this subsection 1 for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 divided by one hundred three percent of the total assessed value used to calculate taxes for general county services for the current fiscal year. (ii) For the budget year beginning July 1, 2024, only, the county’s actual levy rate imposed under this subsection 1 for the current fiscal year shall also include the amount per thousand dollars of assessed value levied for general county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023, and the current fiscal year’s actual property tax dollars certified for levy under this subsection 1 shall also include amounts levied for general county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. (4) Subject to adjustment under subparagraph (2), for purposes of this paragraph, “adjusted general county basic levy rate” means a levy rate per thousand dollars of assessed value equal to the sum of three dollars and fifty cents plus the amount per thousand dollars of assessed value levied for general county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. c. For each fiscal year beginning on or after July 1, 2028, three dollars and fifty cents per thousand dollars of assessed value. 2. For rural county services , on all taxable property in the county outside of incorporated city areas: a. For fiscal years beginning before July 1, 2024, three dollars and ninety-five cents per thousand dollars of the assessed value of taxable property in the county outside of
House File 718, p. 5 incorporated city areas . b. (1) For each fiscal year beginning on or after July 1, 2024, but before July 1, 2028, subject to subparagraph (3), the greater of three dollars and ninety-five cents per thousand dollars of assessed value used to calculate taxes for rural county services for the budget year and the adjusted rural county basic levy rate, as adjusted under subparagraph (2), if applicable. (2) (a) If the total assessed value used to calculate taxes for rural county services under this paragraph for the budget year exceeds one hundred three percent, but is less than one hundred six percent, of the total assessed value used to calculate taxes for rural county services for the current fiscal year, the adjusted rural county basic levy rate, as previously adjusted under this subparagraph, if applicable, shall be reduced to a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 divided by one hundred two percent of the total assessed value used to calculate such taxes for the current fiscal year. For the budget year beginning July 1, 2024, only, the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 shall also include property tax dollar amounts levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. (b) If the total assessed value used to calculate taxes for rural county services under this paragraph for the budget year is equal to or exceeds one hundred six percent of the total assessed value used to calculate taxes for rural county services for the current fiscal year, the adjusted rural county basic levy rate, as previously adjusted under this subparagraph, if applicable, shall be reduced to a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 divided by one hundred three percent of the total assessed value used to calculate such taxes for
House File 718, p. 6 the current fiscal year. For the budget year beginning July 1, 2024, only, the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 shall also include property tax dollar amounts levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. (3) (a) (i) In addition to the limitation under subparagraph (2), if the county’s actual levy rate imposed under this paragraph for the current fiscal year is three dollars and ninety-five cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes for rural county services under this paragraph for the budget year exceeds one hundred three percent, but is less than one hundred six percent, of the total assessed value used to calculate taxes for rural county services for the current fiscal year, the levy rate imposed under this subsection 2 for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 divided by one hundred two of the total assessed value used to calculate taxes for rural county services for the current fiscal year. (ii) For the budget year beginning July 1, 2024, only, the county’s actual levy rate imposed under this subsection 2 for the current fiscal year shall also include the amount per thousand dollars of assessed value levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023, and the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 shall also include amounts levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. (b) (i) In addition to the limitation under subparagraph (2), if the county’s actual levy rate imposed under this subsection 2 for the current fiscal year is three dollars and ninety-five cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes for rural county services under this paragraph for the budget year is equal to or exceeds one hundred six percent of the
House File 718, p. 7 total assessed value used to calculate taxes for rural county services for the current fiscal year, the levy rate imposed under this subsection 2 for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 divided by one hundred three of the total assessed value used to calculate taxes for rural county services for the current fiscal year. (ii) For the budget year beginning July 1, 2024, only, the county’s actual levy rate imposed under this subsection 2 for the current fiscal year shall also include the amount per thousand dollars of assessed value levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023, and the current fiscal year’s actual property tax dollars certified for levy under this subsection 2 shall also include amounts levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. (4) Subject to adjustment under subparagraph (2), for purposes of this paragraph, “adjusted rural county basic levy rate” means a levy rate per thousand dollars of assessed value equal to the sum of three dollars and ninety-five cents plus the amount per thousand dollars of assessed value levied for rural county services by the county under section 331.426, Code 2023, for the fiscal year beginning July 1, 2023. c. For each fiscal year beginning on or after July 1, 2028, three dollars and ninety-five cents per thousand dollars of assessed value. 3. For purposes of this section: a. “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified. b. “Current fiscal year” is the fiscal year ending during the calendar year in which a budget for the budget year is certified. Sec. 3. Section 331.424, unnumbered paragraph 1, Code 2023, is amended to read as follows: To the extent that the basic levies under section 331.423 are insufficient to meet the county’s needs for the following
House File 718, p. 8 services, the board may certify supplemental levies as follows: Sec. 4. Section 331.425, unnumbered paragraph 1, Code 2023, is amended to read as follows: The board may certify an addition to a levy in excess of the amounts otherwise permitted under sections 331.423 , and 331.424 , and 331.426 if the proposition to certify an addition to a levy has been submitted at a special levy election and received a favorable majority of the votes cast on the proposition. A special levy election is subject to the following: Sec. 5. Section 331.425, Code 2023, is amended by adding the following new subsection: NEW SUBSECTION . 6. a. If the addition to a levy approved under this section is due to unusual circumstances resulting from the following, the duration of such approval at election shall not exceed the following period of years: (1) Unusual problems relating to major new functions required by state law, three years. (2) Unusual need for a new program which will provide substantial benefit to county residents, if the county establishes the need and the amount of necessary increased cost, one year. b. For an election to approve an addition to a levy for a reason specified in paragraph “a” or as the result of a natural disaster, the ballot shall include a statement of the major reasons for the difference between the proposed basic tax rate and the maximum basic tax rate, including a description of the major new functions required by state law and the specific new costs to the county to implement the new functions, a description of the new program that will provide substantial benefits to county residents and specific new costs to the county for the program, or the conditions and damage resulting from the natural disaster that the county must remedy. Sec. 6. Section 331.434, unnumbered paragraph 1, Code 2023, is amended to read as follows: Annually, the board of each county, subject to section 331.403, subsection 4 , sections 331.423 through 331.426 331.425 , section 331.433A , and other applicable state law, shall prepare and adopt a budget, certify taxes, and provide
House File 718, p. 9 appropriations as follows: Sec. 7. Section 331.435, subsection 1, Code 2023, is amended to read as follows: 1. The board may amend the adopted county budget, subject to sections 331.423 through 331.426 331.425 and other applicable state law, to permit increases in any class of proposed expenditures contained in the budget summary published under section 331.434, subsection 3 . Sec. 8. Section 331.441, subsection 2, paragraph c, subparagraph (11), Code 2023, is amended by striking the subparagraph. Sec. 9. REPEAL. Section 331.426, Code 2023, is repealed. Sec. 10. APPLICABILITY. This division of this Act applies to taxes and budgets for fiscal years beginning on or after July 1, 2024. DIVISION II CITY PROPERTY TAXES AND BUDGETS Sec. 11. Section 24.48, subsection 5, Code 2023, is amended by adding the following new paragraph: NEW PARAGRAPH . c. For budgets for fiscal years beginning on or after July 1, 2024, if the political subdivision is a city, a suspension of the statutory property tax levy limitations under this section shall only be approved by the state appeal board in the event of a natural disaster or under the reasons specified in subsection 1, paragraph “c” or “f” . Sec. 12. Section 28M.5, subsection 1, Code 2023, is amended to read as follows: 1. The commission, with the approval of the board of supervisors of participating counties and the city council of participating cities in the chapter 28E agreement, may levy annually a tax not to exceed ninety-five cents per thousand dollars of the assessed value of all taxable property in a regional transit district to the extent provided in this section . The chapter 28E agreement may authorize the commission to levy the tax at different rates within the participating cities and counties in amounts sufficient to meet the revenue responsibilities of such cities and counties as allocated in the budget adopted by the commission. However, for a city participating in a regional transit district, the
House File 718, p. 10 total of all the tax levies imposed in the city pursuant to section 384.12, subsection 10 1 , and this section shall not exceed the aggregate of ninety-five cents per thousand dollars of the assessed value of all taxable property in the participating city. Sec. 13. Section 37.8, Code 2023, is amended to read as follows: 37.8 Levy for Cost of development, operation, and maintenance. For the development, operation, and maintenance of a building or monument constructed, purchased, or donated under this chapter , a city may levy a tax not to exceed eighty-one cents per thousand dollars of assessed value on all the taxable property within the city, as provided in section 384.12, subsection 2 utilize taxes levied under section 384.1 . Sec. 14. Section 384.1, Code 2023, is amended to read as follows: 384.1 Taxes certified. 1. A city may certify taxes to be levied by the county on all taxable property within the city limits, for all city government purposes. However, the 2. Notwithstanding subsection 3, the tax levied by a city on tracts of land and improvements thereon used and assessed for agricultural or horticultural purposes, shall not exceed three dollars and three-eighths cents per thousand dollars of assessed value in any fiscal year. Improvements located on such tracts of land and not used for agricultural or horticultural purposes and all residential dwellings are subject to the same rate of tax levied by the city on all other taxable property within the city. A 3. a. For fiscal years beginning before July 1, 2024, a city’s tax levy for the general fund shall not exceed eight dollars and ten cents per thousand dollars of taxable assessed value used to calculate taxes in any tax fiscal year, except for the levies authorized in section 384.12 . b. Subject to adjustment under paragraph “c” , subparagraph (2), for purposes of this subsection, “adjusted city general fund levy rate” means a levy rate per thousand dollars of assessed value equal to the sum of eight dollars and ten cents
House File 718, p. 11 per thousand dollars of assessed value plus the sum of the following for the city, as applicable: (1) The amount per thousand dollars of assessed value levied by or on behalf of the city under section 384.8, Code 2023, for the fiscal year beginning July 1, 2023. (2) The total amount per thousand dollars of assessed value levied by or on behalf of the city under section 384.12, subsections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 15, 16, and 20, Code 2023, for the fiscal year beginning July 1, 2023. (3) The amount per thousand dollars of assessed value levied by the city under section 24.48, Code 2023, for the fiscal year beginning July 1, 2023. c. (1) For each fiscal year beginning on or after July 1, 2024, but before July 1, 2028, subject to subparagraph (3), a city’s tax levy for the general fund, except for levies authorized in section 384.12, shall not exceed in any tax year the greater of eight dollars and ten cents per thousand dollars of assessed value used to calculate taxes for the budget year and the adjusted city general fund levy rate, as adjusted under subparagraph (2), if applicable. (2) (a) If the total assessed value used to calculate taxes under this paragraph for the budget year exceeds one hundred three percent, but is less than one hundred six percent, of the total assessed value used to calculate taxes under this subsection for the current fiscal year, the adjusted city general fund levy rate, as previously adjusted under this subparagraph, if applicable, shall be reduced to a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by one hundred two percent of the total assessed value used to calculate such taxes for the current fiscal year. For the budget year beginning July 1, 2024, only, the current fiscal year’s actual property tax dollars certified for levy under this subsection shall also include property tax dollar amounts levied under the provisions specified in paragraph “b” , subparagraphs (1), (2), and (3). (b) If the total assessed value used to calculate taxes under this paragraph for the budget year is equal to or exceeds
House File 718, p. 12 one hundred six percent of the total assessed value used to calculate taxes under this subsection for the current fiscal year, the adjusted city general fund levy rate, as previously adjusted under this subparagraph, if applicable, shall be reduced to a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by one hundred three percent of the total assessed value used to calculate such taxes for the current fiscal year. For the budget year beginning July 1, 2024, only, the current fiscal year’s actual property tax dollars certified for levy under this subsection shall also include property tax dollar amounts levied under the provisions specified in paragraph “b” , subparagraphs (1), (2), and (3). (3) (a) (i) In addition to the limitation under subparagraph (2), if the city’s actual levy rate imposed under this subsection for the current fiscal year is eight dollars and ten cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes under this paragraph for the budget year exceeds one hundred three percent, but is less than one hundred six percent, of the total assessed value used to calculate taxes under this subsection for the current fiscal year, the levy rate imposed under this paragraph for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by one hundred two percent of the total assessed value used to calculate taxes under this subsection for the current fiscal year. (ii) For the budget year beginning July 1, 2024, only, the city’s actual levy rate imposed under this subsection for the current fiscal year shall also include the sum of the amounts per thousand dollars of assessed value specified in paragraph “b” , subparagraphs (1), (2), and (3), and the current fiscal year’s actual property tax dollars certified for levy under this subsection shall also include property tax dollar amounts levied by the city under the provisions specified in paragraph “b” , subparagraphs (1), (2), and (3).
House File 718, p. 13 (b) (i) In addition to the limitation under subparagraph (2), if the city’s actual levy rate imposed under this subsection for the current fiscal year is eight dollars and ten cents or less per thousand dollars of assessed value and the total assessed value used to calculate taxes under this paragraph for the budget year is equal to or exceeds one hundred six percent of the total assessed value used to calculate taxes under this subsection for the current fiscal year, the levy rate imposed under this paragraph for the budget year shall not exceed a rate per thousand dollars of assessed value that is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy under this subsection divided by one hundred three percent of the total assessed value used to calculate taxes under this subsection for the current fiscal year. (ii) For the budget year beginning July 1, 2024, only, the city’s actual levy rate imposed under this subsection for the current fiscal year shall also include the sum of the amounts per thousand dollars of assessed value specified in paragraph “b” , subparagraphs (1), (2), and (3), and the current fiscal year’s actual property tax dollars certified for levy under this subsection shall also include property tax dollar amounts levied by the city under the provisions specified in paragraph “b” , subparagraphs (1), (2), and (3). d. For each fiscal year beginning on or after July 1, 2028, a city’s tax levy rate for the general fund, except for levies authorized in section 384.12, shall not exceed eight dollars and ten cents per thousand dollars of assessed value used to calculate taxes in any fiscal year. 4. For purposes of this section: a. “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified. b. “Current fiscal year” is the fiscal year ending during the calendar year in which a budget for the budget year is certified. Sec. 15. Section 384.12, Code 2023, is amended to read as follows: 384.12 Additional taxes. A city may certify, for the general fund levy, taxes which
House File 718, p. 14 are not subject to the limit provided in section 384.1 , and which are in addition to any other moneys the city may wish to spend for such purposes, as follows: 1. A tax not to exceed thirteen and one-half cents per thousand dollars of assessed value for the support of instrumental or vocal musical groups, one or more organizations which have tax-exempt status under section 501(c)(3) of the Internal Revenue Code and are organized and operated exclusively for artistic and cultural purposes, or any of these purposes, subject to the following: a. Upon receipt of a petition valid under the provisions of section 362.4 , the council shall submit to the voters at the next regular city election the question of whether a tax shall be levied. b. If a majority approves the levy, it may be imposed. c. The levy can be eliminated by the same procedure of petition and election. d. A tax authorized by an election held prior to the effective date of the city code may be continued until eliminated by the council, or by petition and election. 2. A tax not to exceed eighty-one cents per thousand dollars of assessed value for development, operation, and maintenance of a memorial building or monument, subject to the provisions of subsection 1 . 3. A tax not to exceed thirteen and one-half cents per thousand dollars of assessed value for support of a symphony orchestra, subject to the provisions of subsection 1 . 4. A tax not to exceed twenty-seven cents per thousand dollars of assessed value for the operation of cultural and scientific facilities, subject to the provisions of subsection 1 , except that the question may be submitted on the council’s own motion. 5. A tax to aid in the construction of a county bridge, subject to the provisions of subsection 1 , except that the question must be submitted at a special election. The expense of a special election under this subsection must be paid by the county. The notice of the special election must include full details of the proposal, including the location of the proposed bridge, the rate of tax to be levied, and all other conditions.
House File 718, p. 15 6. A tax to aid a company incorporated under the laws of this state in the construction of a highway or combination bridge across any navigable boundary river of this state, commencing or terminating in the city and suitable for use as highway, or for both highway and railway purposes. This tax levy is subject to the provisions of subsections 1 and 5 . The levy is limited to one dollar and thirty-five cents per thousand dollars of the assessed value of taxable property in the city. The estimated cost of the bridge must be at least ten thousand dollars, and the city aid may not exceed one-half of the estimated cost. The notice of the special election must include the name of the corporation to be aided, and all conditions required of the corporation. Tax moneys received for this purpose may not be paid over by the county treasurer until the city has filed a statement that the corporation has complied with all conditions. 7. If a tax has been voted for aid of a bridge under subsection 6 , a further tax may be voted for the purpose of purchasing the bridge, subject to the provisions of subsection 1 . The levy under this subsection is limited to three dollars and thirty-seven and one-half cents per thousand dollars of the assessed value of the taxable property in the city, payable in not less than ten annual installments. 8. A tax for the purpose of carrying out the terms of a contract for the use of a bridge by a city situated on a river over which a bridge has been built. The tax may not exceed sixty-seven and one-half cents per thousand dollars of assessed value each year. 9. A tax for aid to a public transportation company, subject to the procedure provided in subsection 1 , except the question must be submitted at a special election. The levy is limited to three and three-eighths cents per thousand dollars of assessed value. In addition to any other conditions the following requirements must be met before moneys received for this purpose may be paid over by the county treasurer: a. The public transportation company shall provide the city with copies of state and federal income tax returns for the five years preceding the year for which payment is contemplated or for such lesser period of time as the company has been in
House File 718, p. 16 operation. b. The city shall, in any given year, be authorized to pay over only such sums as will yield not to exceed two percent of the public transportation company’s investment as the same is valued in its tax depreciation schedule, provided that corporate profits and losses for the five preceding years or for such lesser period of time as the company has been in operation shall not average in excess of a two percent net return. Taxes levied under this subsection may not be used to subsidize losses incurred prior to the election required by this subsection . 10. 1. A tax for the operation and maintenance of a municipal transit system or for operation and maintenance of a regional transit district, and for the creation of a reserve fund for the system or district, in an amount not to exceed ninety-five cents per thousand dollars of assessed value each year, when the revenues from the transit system or district are insufficient for such purposes. 11. If a city has entered into a lease of a building or complex of buildings to be operated as a civic center, a tax sufficient to pay the installments of rent and for maintenance, insurance and taxes not included in the lease rental payments. 12. A tax not to exceed thirteen and one-half cents per thousand dollars of assessed value each year for operating and maintaining a civic center owned by a city. 13. A tax not to exceed six and three-fourths cents per thousand dollars of assessed value for planning a sanitary disposal project. 14. 2. A tax not to exceed twenty-seven cents per thousand dollars of assessed value each year for an aviation authority as provided in section 330A.15 . 15. A tax not to exceed six and three-fourths cents per thousand dollars of assessed value each year for a levee improvement fund in special charter cities as provided in section 420.155 . 16. A tax not to exceed twenty and one-half cents per thousand dollars of assessed value each year to maintain an institution received by gift or devise, subject to an election as required under subsection 1 .
House File 718, p. 17 17. 3. A tax to pay the premium costs on tort liability insurance, property insurance, and any other insurance that may be necessary in the operation of the city, the costs of a self-insurance program, the costs of a local government risk pool and amounts payable under any insurance agreements to provide or procure such insurance, self-insurance program, or local government risk pool. 18. A tax to fund an emergency medical services district under chapter 357G . 19. 4. A tax that exceeds any tax levy limit within this chapter , provided the question has been submitted at a special levy election and received a simple majority of the votes cast on the proposition to authorize the enumerated levy limit to be exceeded for the proposed budget year. a. The election may be held as specified in this subsection if notice is given by the city council, not later than forty-six days before the first Tuesday in March, to the county commissioner of elections that the election is to be held. b. An election under this subsection shall be held on the first Tuesday in March and be conducted by the county commissioner of elections in accordance with the law. c. The ballot question shall be in substantially the following form: WHICH TAX LEVY SHALL BE ADOPTED FOR THE CITY OF ........ ? (Vote for only one of the following choices.) CHANGE LEVY AMOUNT ... Add to the existing levy amount a tax for the purpose of .......... (state purpose of proposed levy) at a rate of ... (rate) which will provide an additional $ .... (amount). KEEP CURRENT LEVY ... Continue under the current maximum rate of ... , providing $ .... (amount). d. The commissioner of elections conducting the election shall notify the city officials and other county auditors where applicable, of the results within two days of the canvass which shall be held on the second day that is not a holiday following the special levy election, and beginning no earlier than 1:00 p.m. on that day. e. Notice of the election shall be published twice in
House File 718, p. 18 accordance with the provisions of section 362.3 , except that the first such notice shall be given at least two weeks before the election. f. The cost of the election shall be borne by the city. g. The election provisions of this subsection shall supersede other provisions for elections only to the extent necessary to comply with the provisions of this subsection . h. The provisions of this subsection apply to all cities, however organized, including special charter cities which may adopt ordinances where necessary to carry out these provisions. i. The council shall certify the city’s budget with the tax askings not exceeding the amount approved by the special levy election. 20. A tax not to exceed twenty-seven cents per thousand dollars of assessed value for support of a public library, subject to petition and referendum requirements of subsection 1 , except that if a majority approves the levy, it shall be imposed. 21. 5. A tax for the support of a local emergency management commission established pursuant to chapter 29C . Sec. 16. Section 384.24, subsection 4, paragraph i, Code 2023, is amended by striking the paragraph. Sec. 17. Section 384.110, Code 2023, is amended to read as follows: 384.110 Insurance, self-insurance, and risk pooling funds. A city may credit funds to a fund or funds for the purposes authorized by section 364.4, subsection 5 ; section 384.12, subsection 17 3 ; or section 384.24, subsection 3 , paragraph “s” . Moneys credited to the fund or funds, and interest earned on such moneys, shall remain in the fund or funds until expended for purposes authorized by section 364.4, subsection 5 ; section 384.12, subsection 17 3 ; or section 384.24, subsection 3 , paragraph “s” . Sec. 18. REPEAL. Section 384.8, Code 2023, is repealed. Sec. 19. APPLICABILITY. This division of this Act applies to taxes and budgets for fiscal years beginning on or after July 1, 2024. DIVISION III PUBLIC EDUCATION AND RECREATION TAX LEVY
House File 718, p. 19 Sec. 20. Section 300.2, Code 2023, is amended by adding the following new subsection: NEW SUBSECTION . 4. A levy under this chapter shall not be approved by the voters on or after the effective date of this division of this Act. Sec. 21. EFFECTIVE DATE. This division of this Act, being deemed of immediate importance, takes effect upon enactment. DIVISION IV COUNTY SHERIFF FEE REPORT Sec. 22. Section 331.655, subsection 5, Code 2023, is amended by striking the subsection. DIVISION V HOMESTEAD PROPERTY TAX CREDIT Sec. 23. Section 2.48, subsection 3, paragraph f, subparagraph (1), Code 2023, is amended to read as follows: (1) The homestead tax exemption and credit under chapter 425 . Sec. 24. Section 25B.7, subsection 2, paragraph a, Code 2023, is amended to read as follows: a. Homestead tax credit pursuant to sections section 425.1 , sections 425.2 through 425.13, and section 425.15 . Sec. 25. Section 103.22, subsection 7, Code 2023, is amended to read as follows: 7. Prohibit an owner of property from performing work on the owner’s principal residence, if such residence is an existing dwelling rather than new construction and is not an apartment that is attached to any other apartment or building, as those terms are defined in section 499B.2 , and is not larger than a single-family dwelling, or require such owner to be licensed under this chapter . In order to qualify for inapplicability pursuant to this subsection , a residence shall qualify for the homestead tax exemption credit . Sec. 26. Section 105.11, subsection 3, Code 2023, is amended to read as follows: 3. Prohibit an owner of property from performing work on the owner’s principal residence, if such residence is an existing dwelling rather than new construction and is not larger than a single-family dwelling, or farm property, excluding commercial or industrial installations or installations in public use
House File 718, p. 20 buildings or facilities, or require such owner to be licensed under this chapter . In order to qualify for inapplicability pursuant to this subsection , a residence shall qualify for the homestead tax exemption credit . Sec. 27. Section 331.401, subsection 1, paragraphs e and f, Code 2023, are amended to read as follows: e. Adopt resolutions authorizing the county assessor to provide forms for homestead tax exemption and credit claimants as provided in section 425.2 and military service tax exemptions as provided in section 426A.14 . f. Examine and allow or disallow claims for homestead tax exemption and credit in accordance with section 425.3 and claims for military service tax exemption in accordance with chapter 426A . The board, by a single resolution, may allow or disallow the exemptions recommended by the assessor. Sec. 28. Section 331.512, subsection 3, Code 2023, is amended to read as follows: 3. Carry out duties relating to the homestead tax exemption and credit and agricultural land tax credit as provided in chapters 425 and 426 . Sec. 29. Section 331.559, subsection 12, Code 2023, is amended to read as follows: 12. Carry out duties relating to the administration of the homestead tax exemption and credit and other credits as provided in sections 425.4 , 425.5 , 425.7 , 425.9 , 425.10 , and 425.25 . Sec. 30. NEW SECTION . 425.1A Homestead tax exemption. 1. The following exemptions from taxation shall be allowed in addition to the homestead credit for an owner that has attained the age of sixty-five years by January 1 of the assessment year: a. For the assessment year beginning January 1, 2023, the eligible homestead, not to exceed three thousand two hundred fifty dollars in taxable value. b. For the assessment year beginning January 1, 2024, and each succeeding assessment year, the eligible homestead, not to exceed six thousand five hundred dollars in taxable value. 2. Section 25B.7, subsection 1, shall not apply to the property tax exemption provided in this section.
House File 718, p. 21 Sec. 31. Section 425.2, Code 2023, is amended by adding the following new subsection: NEW SUBSECTION . 3A. The form for claiming the credit shall also include the ability to claim the exemption under section 425.1A for qualified owners. If the claim for the homestead credit is allowed, such allowance shall also include allowance of the homestead exemption if the owner meets the age criteria for the exemption. The homestead exemption shall be allowed for successive years without further filing in the same manner as the homestead credit. Sec. 32. Section 425.3, subsection 4, Code 2023, is amended to read as follows: 4. The county auditor shall forward the claims to the board of supervisors. The board shall allow or disallow the claims. If the board disallows a claim, it shall send written notice, by mail, to the claimant at the claimant’s last known address. The notice shall state the reasons for disallowing the claim for the credit . The board is not required to send notice that a claim is disallowed if the claimant voluntarily withdraws the claim. Sec. 33. Section 425.4, Code 2023, is amended to read as follows: 425.4 Certification to treasurer. All claims which have been allowed by the board of supervisors shall be certified on or before August 1, in each year, by the county auditor to the county treasurer, which certificates shall list the total amount of dollars, listed by taxing district in the county, due for homestead tax exemptions and credits claimed and allowed. The county treasurer shall forthwith then certify to the department of revenue the total amount of dollars, listed by taxing district in the county, due for homestead tax credits claimed and allowed. Sec. 34. Section 425.6, Code 2023, is amended to read as follows: 425.6 Waiver by neglect. If a person fails to file a claim or to have a claim on file with the assessor for the credits provided in this subchapter , the person is deemed to have waived the homestead exemption and credit for the year in which the person failed to file the
House File 718, p. 22 claim or to have a claim on file with the assessor. Sec. 35. Section 425.7, subsection 3, Code 2023, is amended to read as follows: 3. a. If the department of revenue determines that a claim for homestead exemption and credit has been allowed by the board of supervisors which is not justifiable under the law and not substantiated by proper facts, the department may, at any time within thirty-six months from July 1 of the year in which the claim is allowed, set aside the allowance. Notice of the disallowance shall be given to the county auditor of the county in which the claim has been improperly granted and a written notice of the disallowance shall also be addressed to the claimant at the claimant’s last known address. The claimant or board of supervisors may appeal to the director of revenue within thirty days from the date of the notice of disallowance. The director shall grant a hearing and if, upon the hearing, the director determines that the disallowance was incorrect, the director shall set aside the disallowance. The director shall notify the claimant and the board of supervisors of the result of the hearing. The claimant or the board of supervisors may seek judicial review of the action of the director of revenue in accordance with chapter 17A . b. If a claim is disallowed by the department of revenue and not appealed to the director of revenue or appealed to the director of revenue and thereafter upheld upon final resolution, including any judicial review, any amounts of exemptions allowed and credits allowed and paid from the homestead credit fund including the penalty, if any, become a lien upon the property on which the exemption or credit was originally granted, if still in the hands of the claimant, and not in the hands of a bona fide purchaser, and any amount so erroneously paid including the penalty, if any, shall be collected by the county treasurer in the same manner as other taxes and the collections shall be returned to the department of revenue and credited to the homestead credit fund. The director of revenue may institute legal proceedings against a homestead credit claimant for the collection of payments made on disallowed credits and the penalty, if any. If a person makes a false claim or affidavit with fraudulent intent to
House File 718, p. 23 obtain the homestead exemption or credit, the person is guilty of a fraudulent practice and the claim shall be disallowed in full. If the credit has been paid, the amount of the credit plus a penalty equal to twenty-five percent of the amount of credit plus interest, at the rate in effect under section 421.7 , from the time of payment shall be collected by the county treasurer in the same manner as other property taxes, penalty, and interest are collected and when collected shall be paid to the director of revenue. If a homestead exemption or credit is disallowed and the claimant failed to give written notice to the assessor as required by section 425.2 when the property ceased to be used as a homestead by the claimant, a civil penalty equal to five percent of the amount of the disallowed exemption or credit is assessed against the claimant. Sec. 36. Section 425.9, subsections 2 and 3, Code 2023, are amended to read as follows: 2. If any claim for exemption or credit made hereunder has been denied by the board of supervisors, and such action is subsequently reversed on appeal, the exemption or credit shall be allowed on the homestead involved in said appeal, and the director of revenue, the county auditor, and the county treasurer shall make such exemption or credit and change their books and records accordingly. 3. In the event the appealing taxpayer has paid one or both of the installments of the tax payable in the year or years in question on such homestead valuation, remittance shall be made to such taxpayer of the amount of such credit or exemption . Sec. 37. Section 425.10, Code 2023, is amended to read as follows: 425.10 Reversal of allowed claim. In the event any claim is allowed, and subsequently reversed on appeal, any exemption and credit made under the claim shall be void. The amount of the erroneous credit shall be charged against the property in question, and the director of revenue, the county auditor, and the county treasurer are authorized and directed to correct their books and records accordingly. The amount of the erroneous credit, when collected, shall be returned by the county treasurer to the homestead credit
House File 718, p. 24 fund to be reallocated the following year as provided in this subchapter . Taxes due following reversal of a claim for an exemption shall be collected by the county treasurer and allocated to the appropriate taxing entities. Sec. 38. Section 425.11, subsection 1, paragraph d, subparagraph (3), Code 2023, is amended to read as follows: (3) It must not embrace more than one dwelling house, but where a homestead has more than one dwelling house situated thereon, the exemption and credit provided for in this subchapter shall apply to the home and buildings used by the owner, but shall not apply to any other dwelling house and buildings appurtenant. Sec. 39. Section 425.11, subsection 1, paragraph e, Code 2023, is amended to read as follows: e. “Owner” means the person who holds the fee simple title to the homestead, and in addition shall mean the person occupying as a surviving spouse or the person occupying under a contract of purchase which contract has been recorded in the office of the county recorder of the county in which the property is located; or the person occupying the homestead under devise or by operation of the inheritance laws where the whole interest passes or where the divided interest is shared only by persons related or formerly related to each other by blood, marriage or adoption; or the person occupying the homestead is a shareholder of a family farm corporation that owns the property; or the person occupying the homestead under a deed which conveys a divided interest where the divided interest is shared only by persons related or formerly related to each other by blood, marriage or adoption; or where the person occupying the homestead holds a life estate with the reversion interest held by a nonprofit corporation organized under chapter 504 , provided that the holder of the life estate is liable for and pays property tax on the homestead; or where the person occupying the homestead holds an interest in a horizontal property regime under chapter 499B , regardless of whether the underlying land committed to the horizontal property regime is in fee or as a leasehold interest, provided that the holder of the interest in the horizontal property regime is liable for and pays property tax on the homestead;
House File 718, p. 25 or where the person occupying the homestead is a member of a community land trust as defined in 42 U.S.C. §12773, regardless of whether the underlying land is in fee or as a leasehold interest, provided that the member of the community land trust is occupying the homestead and is liable for and pays property tax on the homestead. For the purpose of this subchapter , the word “owner” shall be construed to mean a bona fide owner and not one for the purpose only of availing the person of the benefits of this subchapter . In order to qualify for the homestead tax exemption and credit, evidence of ownership shall be on file in the office of the clerk of the district court or recorded in the office of the county recorder at the time the owner files with the assessor a verified statement of the homestead claimed by the owner as provided in section 425.2 . Sec. 40. Section 425.12, Code 2023, is amended to read as follows: 425.12 Indian land. Each forty acres of land, or fraction thereof, occupied by a member or members of the Sac and Fox Indians in Tama county, which land is held in trust by the secretary of the interior of the United States for said Indians, shall be given a homestead tax exemption and credit within the meaning and under the provisions of this subchapter . Application for such homestead tax exemption and credit shall be made to the county auditor of Tama county and may be made by a representative of the tribal council. Sec. 41. Section 425.13, Code 2023, is amended to read as follows: 425.13 Conspiracy to defraud. If any two or more persons conspire and confederate together with fraudulent intent to obtain the exemption or credit provided for under the terms of this subchapter by making a false deed, or a false contract of purchase, they are guilty of a fraudulent practice. Sec. 42. Section 425.16, subsection 1, Code 2023, is amended to read as follows: 1. In addition to the homestead tax credit allowed under section 425.1, subsections 1 through 4 , and the homestead exemption under section 425.lA, if applicable, persons who
House File 718, p. 26 own or rent their homesteads and who meet the qualifications provided in this subchapter are eligible for a property tax credit for property taxes due or reimbursement of rent constituting property taxes paid. Sec. 43. Section 425.17, subsections 4 and 8, Code 2023, are amended to read as follows: 4. “Homestead” means the dwelling owned or rented and actually used as a home by the claimant during the period specified in subsection 2 , and so much of the land surrounding it including one or more contiguous lots or tracts of land, as is reasonably necessary for use of the dwelling as a home, and may consist of a part of a multidwelling or multipurpose building and a part of the land upon which it is built. It does not include personal property except that a manufactured or mobile home may be a homestead. Any dwelling or a part of a multidwelling or multipurpose building which is exempt from taxation , except for an exemption under section 425.1A, does not qualify as a homestead under this subchapter . However, solely for purposes of claimants living in a property and receiving reimbursement for rent constituting property taxes paid immediately before the property becomes tax exempt, and continuing to live in it after it becomes tax exempt, the property shall continue to be classified as a homestead. A homestead must be located in this state. When a person is confined in a nursing home, extended-care facility, or hospital, the person shall be considered as occupying or living in the person’s homestead if the person is the owner of the homestead and the person maintains the homestead and does not lease, rent, or otherwise receive profits from other persons for the use of the homestead. 8. “Property taxes due” means property taxes including any special assessments, but exclusive of delinquent interest and charges for services, due on a claimant’s homestead in this state, but includes only property taxes for which the claimant is liable and which will actually be paid by the claimant. However, if the claimant is a person whose property taxes have been suspended under sections 427.8 and 427.9 , “property taxes due” means property taxes including any special assessments, but exclusive of delinquent interest and charges for services,
House File 718, p. 27 due on a claimant’s homestead in this state, but includes only property taxes for which the claimant is liable and which would have to be paid by the claimant if the payment of the taxes has not been suspended pursuant to sections 427.8 and 427.9 . “Property taxes due” shall be computed with no deduction for any credit under this subchapter or for any homestead credit allowed under section 425.1 subchapter I . Each claim shall be based upon the taxes due during the fiscal year next following the base year. If a homestead is owned by two or more persons as joint tenants or tenants in common, and one or more persons are not members of claimant’s household, “property taxes due” is that part of property taxes due on the homestead which equals the ownership percentage of the claimant and the claimant’s household. The county treasurer shall include with the tax receipt a statement that if the owner of the property is eighteen years of age or over, the person may be eligible for the credit allowed under this subchapter . If a homestead is an integral part of a farm, the claimant may use the total property taxes due for the larger unit. If a homestead is an integral part of a multidwelling or multipurpose building the property taxes due for the purpose of this subsection shall be prorated to reflect the portion which the value of the property that the household occupies as its homestead is to the value of the entire structure. For purposes of this subsection , “unit” refers to that parcel of property covered by a single tax statement of which the homestead is a part. Sec. 44. Section 435.26, subsection 1, paragraph a, Code 2023, is amended to read as follows: a. A mobile home or manufactured home which is located outside a manufactured home community or mobile home park shall be converted to real estate by being placed on a permanent foundation and shall be assessed for real estate taxes. A home, after conversion to real estate, is eligible for the homestead tax exemption and credit and the military service tax exemption as provided in sections 425.2 and chapter 425, subchapter I, and section 426A.11 . A taxable mobile home or manufactured home which is located outside of a manufactured home community or mobile home park as of January 1, 1995, is also exempt from the permanent foundation requirements of this
House File 718, p. 28 chapter until the home is relocated. Sec. 45. Section 435.26A, subsection 3, Code 2023, is amended to read as follows: 3. After the surrender of a manufactured home’s certificate of title under this section , the manufactured home shall continue to be taxed under section 435.22 and is not eligible for the homestead tax exemption and credit or the military service tax exemption and credit . A foreclosure action on a manufactured home whose title has been surrendered under this section shall be conducted as a real estate foreclosure. A tax lien and its priority shall remain the same on a manufactured home after its certificate of title has been surrendered. Sec. 46. Section 499A.14, Code 2023, is amended to read as follows: 499A.14 Taxation. The real estate shall be taxed in the name of the cooperative, and each member of the cooperative shall pay that member’s proportionate share of the tax in accordance with the proration formula set forth in the bylaws, and each member occupying an apartment as a residence shall receive that member’s proportionate homestead tax exemption and credit and each veteran of the military services of the United States identified as such under the laws of the state of Iowa or the United States shall receive as a credit that member’s veterans tax benefit as prescribed by the laws of the state of Iowa. Sec. 47. EXISTING HOMESTEAD CLAIMS. Homestead credit claims approved under chapter 425, subchapter I, prior to and valid on the effective date of this division of this Act shall result in a homestead exemption under chapter 425, subchapter I, as enacted in this division of this Act, without further filing by the claimant if the claimant meets the criteria for the exemption and the assessor has appropriate information to verify such eligibility. Sec. 48. EFFECTIVE DATE. This division of this Act, being deemed of immediate importance, takes effect upon enactment. Sec. 49. RETROACTIVE APPLICABILITY. This division of this Act applies retroactively to assessment years beginning on or after January 1, 2023. DIVISION VI
House File 718, p. 29 MILITARY SERVICE PROPERTY TAX EXEMPTION AND CREDIT Sec. 50. Section 25B.7, subsection 2, paragraph c, Code 2023, is amended by striking the paragraph. Sec. 51. Section 426A.1A, Code 2023, is amended to read as follows: 426A.1A Appropriation. There For each fiscal year beginning before July 1, 2024, there is appropriated from the general fund of the state the amounts necessary to fund the credits provided under this chapter . Sec. 52. Section 426A.2, Code 2023, is amended to read as follows: 426A.2 Military service tax credit. The For each fiscal year beginning before July 1, 2024, the moneys appropriated under section 426A.1A shall be apportioned each year so as to replace all or a portion of the tax which would be due on property eligible for military service tax exemption in the state, if the property were subject to taxation, the amount of the credit to be not more than six dollars and ninety-two cents per thousand dollars of assessed value of property which would be subject to the tax, except for the military service tax exemption. Sec. 53. Section 426A.11, subsections 1 and 2, Code 2023, are amended to read as follows: 1. The property, not to exceed two thousand seven hundred seventy-eight dollars in taxable value for assessment years beginning before January 1, 2023 , of any veteran, as defined in section 35.1 , of World War I. 2. a. The property, not to exceed one thousand eight hundred fifty-two dollars in taxable value for assessment years beginning before January 1, 2023 , of an honorably separated, retired, furloughed to a reserve, placed on inactive status, or discharged veteran, as defined in section 35.1, subsection 2 , paragraph “a” or “b” . b. The property, not to exceed four thousand dollars in taxable value for the assessment years beginning on or after January 1, 2023, of an honorably separated, retired, furloughed to a reserve, placed on inactive status, or discharged veteran, as defined in section 35.1, subsection 2, paragraph “a” or “b” .
House File 718, p. 30 Sec. 54. IMPLEMENTATION. Section 25B.7, subsection 1, shall not apply to the property tax exemption provided in this Act. Sec. 55. EFFECTIVE DATE. This division of this Act, being deemed of immediate importance, takes effect upon enactment. Sec. 56. RETROACTIVE APPLICABILITY. This division of this Act applies retroactively to assessment years beginning on or after January 1, 2023. DIVISION VII PROPERTY TAX BENEFITS AND INCENTIVES Sec. 57. NEW SECTION . 404.3C Assessment agreements —— commercial property. 1. For revitalization areas established under this chapter on or after the effective date of this division of this Act and for first-year exemption applications for property located in a revitalization area in existence on the effective date of this division of this Act filed on or after the effective date of this division of this Act, commercial property shall not receive a tax exemption under this chapter unless the city or county, as applicable, and the owner of the qualified real estate enter into a written assessment agreement specifying a minimum actual value until a specified termination date for the duration of the exemption period. 2. a. The assessment agreement shall be presented to the appropriate assessor. The assessor shall review the plans and specifications for the improvements to be made to the property and if the minimum actual value contained in the assessment agreement appears to be reasonable, the assessor shall execute the following certification upon the agreement: The undersigned assessor, being legally responsible for the assessment of the above described property upon completion of the improvements to be made on it, certifies that the actual value assigned to that land and improvements upon completion shall not be less than $......... b. The assessment agreement with the certification of the assessor and a copy of this subsection shall be filed in the office of the county recorder of the county where the property is located. Upon completion of the improvements, the assessor shall value the property as required by law,
House File 718, p. 31 except that the actual value shall not be less than the minimum actual value contained in the assessment agreement. This subsection does not prohibit the assessor from assigning a higher actual value to the property or prohibit the owner from seeking administrative or legal remedies to reduce the actual value assigned except that the actual value shall not be reduced below the minimum actual value contained in the assessment agreement. An assessor, county auditor, board of review, director of revenue, or court of this state shall not reduce or order the reduction of the actual value below the minimum actual value in the agreement during the term of the agreement regardless of the actual value which may result from the incomplete construction of improvements, destruction or diminution by any cause, insured or uninsured, except in the case of acquisition or reacquisition of the property by a public entity. Recording of an assessment agreement complying with this subsection constitutes notice of the assessment agreement to a subsequent purchaser or encumbrancer of the land or any part of it, whether voluntary or involuntary, and is binding upon a subsequent purchaser or encumbrancer. Sec. 58. NEW SECTION . 404.3D Exemptions for residential property. For revitalization areas established under this chapter on or after the effective date of this division of this Act and for first-year exemption applications for property located in a revitalization area in existence on the effective date of this division of this Act filed on or after the effective date of this division of this Act, an exemption authorized under this chapter for property that is residential property shall not apply to property tax levies imposed by a school district. Sec. 59. EFFECTIVE DATE. This division of this Act takes effect July 1, 2024. DIVISION VIII TRANSIT FUNDING Sec. 60. Section 364.2, subsection 4, paragraph f, subparagraph (1), subparagraph division (b), Code 2023, is amended to read as follows: (b) For franchise fees assessed and collected during fiscal years beginning on or after July 1, 2013 2024 , but before
House File 718, p. 32 July 1, 2030, by a city that is the subject of a judgment, court-approved settlement, or court-approved compromise providing for payment of restitution, a refund, or a return described in section 384.3A, subsection 3 , paragraph “j” with a population exceeding two hundred thousand , the rate of the franchise fee shall not exceed seven and one-half percent of gross revenues generated from sales of the franchisee in the city, and franchise fee amounts assessed and collected during such fiscal years in excess of five percent of gross revenues generated from sales shall be used solely for the purpose specified in section 384.3A, subsection 3 , paragraph “j” . A city may assess and collect a franchise fee in excess of five percent of gross revenues generated from the sales of the franchisee pursuant to this subparagraph division (b) for a period not to exceed seven consecutive fiscal years once the franchise fee is first imposed at a rate in excess of five percent. An ordinance increasing the franchise fee rate to greater than five percent pursuant to this subparagraph division (b) shall not become effective unless approved at an election. After passage of the ordinance, the council shall submit the proposal at a special election held on a date specified in section 39.2, subsection 4 , paragraph “b” . If a majority of those voting on the proposal approves the proposal, the city may proceed as proposed. The complete text of the ordinance shall be included on the ballot and the full text of the ordinance posted for the voters pursuant to section 52.25 . All absentee voters shall receive the full text of the ordinance along with the absentee ballot. This subparagraph division (b) is repealed July 1, 2030. Sec. 61. Section 384.3A, subsection 3, paragraph j, Code 2023, is amended to read as follows: j. For franchise fees assessed and collected by a city in excess of five percent of gross revenues generated from sales of the franchisee within the city pursuant to section 364.2, subsection 4 , paragraph “f” , subparagraph (1), subparagraph division (b), during fiscal years beginning on or after July 1, 2013 2024 , but before July 1, 2030, the adjustment, renewal, or extension of any part or all of the legal indebtedness of a city, whether evidenced by bonds, warrants, court-approved
House File 718, p. 33 settlements, court-approved compromises, or judgments, or the funding or refunding of the same, if such legal indebtedness relates to restitution, a refund, or a return ordered by a court of competent jurisdiction for franchise fees assessed and collected by the city before June 20, 2013 solely for the reduction of property tax levies that support the operation and maintenance of a municipal transit system or a regional transit district or to maintain transportation service levels of a municipal transit system or a regional transit district . This paragraph “j” is repealed July 1, 2030. Sec. 62. EFFECTIVE DATE. This division of this Act takes effect July 1, 2024. DIVISION IX COUNTY AUDITOR VALUATION REPORTS Sec. 63. Section 331.510, subsections 3 and 4, Code 2023, are amended to read as follows: 3. An annual report not later than January 1 to the department of management of the valuation by class of property for each taxing district in the county on forms provided by the department of management. The valuations reported shall be those valuations used for determining the levy rates necessary to fund the budgets of the taxing districts for the following fiscal year. Each annual report under this subsection for assessment years beginning on or after January 1, 2024, shall distinguish such values as revaluation or other type of addition to value, as defined and submitted in the assessor’s abstract transmitted to the department of revenue under section 441.45. 4. An annual report not later than January 1 to the governing body of each taxing district in the county of the assessed valuations of taxable property in the taxing district as reported to the department of management. Each annual report under this subsection for assessment years beginning on or after January 1, 2024, shall distinguish such values as revaluation or other type of addition to value, as defined and submitted in the assessor’s abstract transmitted to the department of revenue under section 441.45. DIVISION X LOCAL GOVERNMENT BUDGETS AND TAXPAYER STATEMENTS
House File 718, p. 34 Sec. 64. NEW SECTION . 24.2A Budget statements to owners and taxpayers. 1. For purposes of this section only: a. “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified. b. “Current fiscal year” is the fiscal year ending during the calendar year in which a budget for the budget year is certified. c. “Effective property tax rate” means the property tax rate per one thousand dollars of assessed value and is equal to one thousand multiplied by the quotient of the current fiscal year’s actual property tax dollars certified for levy divided by the total assessed value used to calculate taxes for the budget year. d. “Political subdivision” means a school district, a county, or a city. 2. a. On or before March 15 of each year, each political subdivision shall file with the department of management a report containing all necessary information for the department of management to compile and calculate amounts required to be included in the statements mailed under paragraph “b” . b. Not later than March 20, the county auditor, using information compiled and calculated by the department of management under paragraph “a” , shall send to each property owner or taxpayer within the county by regular mail an individual statement containing all of the following for each of the political subdivisions comprising the owner’s or taxpayer’s taxing district: (1) The sum of the current fiscal year’s actual property taxes certified for levy for all of the political subdivision’s levies and the combined property tax rate per one thousand dollars for such tax amount for the current fiscal year. (2) The combined effective property tax rate for the political subdivision calculated using the sum of the current fiscal year’s actual property taxes certified for levy for all of the political subdivision’s levies under subparagraph (1). (3) The combined amount of the proposed property tax dollars to be certified for all of the political subdivision’s levies for the budget year and the proposed combined property tax rate
House File 718, p. 35 per one thousand dollars for such levies. (4) If the proposed property tax dollars specified under subparagraph (3) exceeds the current fiscal year’s actual property tax dollars certified for levy specified in subparagraph (1), a detailed statement of the major reasons for the increase, including the specific purposes or programs for which the political subdivision is proposing an increase. (5) An example comparing the amount of property taxes on a residential property with an actual value of one hundred thousand dollars in the current fiscal year and such amount on the residential property using the proposed property tax dollars for the budget year, including the percentage difference in such amounts. (6) An example comparing the amount of property taxes on a commercial property with an actual value of one hundred thousand dollars in the current fiscal year and such amount on the commercial property using the proposed property tax dollars for the budget year, including the percentage difference in such amounts. (7) The political subdivision’s percentage of total property taxes certified for levy in the owner’s or taxpayer’s taxing district in the current fiscal year among all taxing authorities. (8) The date, time, and location of the political subdivision’s public hearing required under subsection 4. (9) Information on how to access on the political subdivision’s internet site the political subdivision’s statements under this section and other budget documents for prior fiscal years. 3. The department of management shall prescribe the form for the report required under subsection 2, paragraph “a” , the statements required to be mailed under subsection 2, paragraph “b” , and the public hearing notice required under subsection 4, paragraph “b” . 4. a. Each political subdivision shall set a time and place for a public hearing on the political subdivision’s proposed property tax amount for the budget year and the political subdivision’s information included in the statements under subsection 2. At the hearing, the governing body
House File 718, p. 36 of the political subdivision shall receive oral or written testimony from any resident or property owner of the political subdivision. This public hearing shall be separate from any other meeting of the governing body of the political subdivision, including any other meeting or public hearing relating to the political subdivision’s budget, and other business of the political subdivision that is not related to the proposed property tax amounts and the information in the statements shall not be conducted at the public hearing. After all testimony has been received and considered, the governing body may decrease, but not increase, the proposed property tax amount to be included in the political subdivision’s budget. b. (1) If the political subdivision is a county, notice of the public hearing shall be published not less than ten nor more than twenty days prior to the hearing in the county newspapers selected under chapter 349. (2) If the political subdivision is a city, notice of the public hearing shall be published not less than ten nor more than twenty days prior to the hearing in a newspaper published at least once weekly and having general circulation in the city. However, if the city has a population of two hundred or less, publication may be made by posting in three public places in the city. (3) If the political subdivision is a school district, notice of the public hearing shall be published not less than ten nor more than twenty days prior to the hearing in a newspaper published in the school district, if any, and if not, then in a newspaper of general circulation in the school district. c. Notice of the hearing shall also be posted and clearly identified on the political subdivision’s internet site for public viewing beginning on the date of the newspaper publication and shall be maintained on the political subdivision’s internet site with all such prior year notices and copies of the statements mailed under subsection 2. Additionally, if the political subdivision maintains a social media account on one or more social media applications, the public hearing notice or an electronic link to the public hearing notice shall be posted on each such account on the same
House File 718, p. 37 day as the publication of the notice. Sec. 65. Section 24.3, unnumbered paragraph 1, Code 2023, is amended to read as follows: A municipality shall not certify or levy in any fiscal year any tax on property subject to taxation unless and until the following estimates have been made, filed, and considered, and for school districts, the individual statements have been mailed and public hearings held, as provided in this chapter : Sec. 66. Section 24.10, Code 2023, is amended to read as follows: 24.10 Levies void. The verified proof of the publication of the notice under section 24.9 shall be filed in the office of the county auditor and preserved by the auditor. A levy shall not be valid unless and until that notice is such notices are published , mailed, and filed. However, failure of an owner or taxpayer to receive a statement under section 24.2A shall not invalidate a levy. Sec. 67. Section 24.17, subsection 1, Code 2023, is amended to read as follows: 1. The local budgets of the various political subdivisions shall be certified by the chairperson of the certifying board or levying board, as the case may be, in duplicate to the county auditor not later than March 15 April 30 of each year on forms, and pursuant to instructions, prescribed by the department of management. However, if the political subdivision is a county or a city, its budget shall be certified not later than March 31 of each year, and if the political subdivision is a school district, as defined in section 257.2 , its budget shall be certified not later than April 15 of each year. Sec. 68. Section 24.27, subsection 1, Code 2023, is amended to read as follows: 1. Not later than March 25, or April 10 for a county or a city, or April 25 if the municipality is a school district May 10 , a number of persons in any municipality political subdivision equal to one-fourth of one percent of those voting for the office of governor, at the last general election in the municipality political subdivision , but the number shall not be less than ten, and the number need not be more than one hundred
House File 718, p. 38 persons, who are affected by any proposed budget, expenditure or tax levy, or by any item thereof, may appeal from any decision of the certifying board or the levying board by filing with the county auditor of the county in which the municipal corporation political subdivision is located, a written protest setting forth their objections to the budget, expenditure or tax levy, or to one or more items thereof, and the grounds for their objections. If a budget is certified after March 15, or March 31 in the case of a county or a city, or April 15 in the case of a school district 30 , all appeal time limits shall be extended to correspond to allowances for a timely filing. Sec. 69. Section 24.28, Code 2023, is amended to read as follows: 24.28 Hearing on protest. The state board, within a reasonable time, shall fix a date for an initial hearing on the protest and may designate a deputy to hold the hearing, which shall be held in the county or in one of the counties in which the municipality political subdivision is located. Notice of the time and place of the hearing shall be given by certified mail to the appropriate officials of the local government and to the first ten property owners whose names appear upon the protest, at least five days before the date fixed for the hearing. At all hearings, the burden shall be upon the objectors with reference to any proposed item in the budget which was included in the budget of the previous year and which the objectors propose should be reduced or excluded; but the burden shall be upon the certifying board or the levying board, as the case may be, to show that any new item in the budget, or any increase in any item in the budget, is necessary, reasonable, and in the interest of the public welfare. Sec. 70. Section 24.48, subsection 4, Code 2023, is amended to read as follows: 4. The city finance committee shall have officially notified any city of its approval, modification or rejection of the city’s appeal of the decision of the director of the department of management regarding a city’s request for a suspension of the statutory property tax levy limitation prior to thirty-five days before March 31 April 30 .
House File 718, p. 39 Sec. 71. Section 275.29, subsection 1, Code 2023, is amended to read as follows: 1. Between July 1 and July 20, or on a date determined by agreement of the initial board and the boards of districts receiving territory of the school districts affected, but not later than August 30, the initial board shall meet with the boards of districts receiving territory of the school districts affected, for the purpose of reaching joint agreement on an equitable division of the assets and an equitable distribution of the liabilities of the school districts affected. In addition, if outstanding general obligation indebtedness is in existence in any district, the initial board of directors of the newly formed school district shall meet with the boards of all school districts affected prior to April 15 30 prior to the school year the reorganization is effective to determine the distribution of liability for payment of the general obligation bonded indebtedness between the districts so that the newly formed district may certify its budget under the procedures specified in chapter 24 . The boards shall consider the mandatory levy required in section 76.2 and shall assure the satisfaction of outstanding obligations. If a school district affected by the reorganization has outstanding bonds issued under section 423E.5 or 423F.4 , the joint agreement shall assure that the estimated revenue under section 423F.2 for each district to which liability for payment of such bonds is assigned is sufficient for the payment of principal and interest on the outstanding bonds required to be paid in the budget year following reorganization. Sec. 72. Section 298.2, subsection 1, paragraph b, Code 2023, is amended to read as follows: b. For school budget years beginning on or after July 1, 2015, a school district may by resolution of the board of directors adopted prior to April 15 30 preceding the budget year impose a physical plant and equipment levy at a rate in excess of the levy rate limitations under paragraph “a” if the board has refunded or refinanced a loan agreement entered into under section 297.36 and such refunding or refinancing complies with the maturity period authorized under section 297.36, subsection 1 , paragraph “c” , and results in a lower amount of
House File 718, p. 40 interest on the amount of the loan agreement. However, the rate imposed by a school district under this paragraph shall not exceed the rate imposed during the budget year in which the loan agreement was refunded or refinanced. Authorization to exceed the levy rate limitations of paragraph “a” shall terminate upon the maturity of the loan agreement after refunding or refinancing. Upon adoption of the resolution under this paragraph “b” , the board shall comply with the requirements of section 297.36, subsection 1 , paragraph “b” . Sec. 73. Section 298.2, subsection 3, Code 2023, is amended to read as follows: 3. The board of directors of a school district may certify for levy by April 15 30 of a school year a tax on all taxable property in the school district for the regular physical plant and equipment levy. Sec. 74. Section 298.2, subsection 4, paragraph b, Code 2023, is amended to read as follows: b. If a combination of a property tax and income surtax is used, by April 15 30 of the previous school year, the board shall certify the percent of the income surtax to be imposed and the amount to be raised to the department of management and the department of management shall establish the rate of the property tax and income surtax for the school year. The physical plant and equipment property tax and income surtax shall be levied or imposed, collected, and paid to the school district in the manner provided for the instructional support program in sections 257.21 through 257.26 . Sec. 75. Section 298.4, subsection 1, unnumbered paragraph 1, Code 2023, is amended to read as follows: The board of directors of a school district may certify for levy by April 15 30 of a school year, a tax on all taxable property in the school district for a district management levy. The revenue from the tax levied in this section shall be placed in the district management levy fund of the school district. The district management levy shall be expended only for the following purposes: Sec. 76. Section 298.10, subsection 1, Code 2023, is amended to read as follows: 1. The board of directors of a school district may certify
House File 718, p. 41 for levy by April 15 30 of a school year, a tax on all taxable property in the school district in order to raise an amount for a necessary cash reserve for a school district’s general fund. The amount raised for a necessary cash reserve does not increase a school district’s authorized expenditures as defined in section 257.7 . Sec. 77. Section 300.2, subsection 2, Code 2023, is amended to read as follows: 2. If a majority of the votes cast upon the proposition is in favor of the proposition, the board shall certify the amount required for a fiscal year to the county board of supervisors by April 15 30 of the preceding fiscal year. The board of supervisors shall levy the amount certified. The amount shall be placed in the public education and recreation levy fund of the district and shall be used only for the purposes specified in this chapter . Sec. 78. Section 303.66, subsection 2, Code 2023, is amended to read as follows: 2. Taxes levied by the board shall be certified on or before the first day of March April 30 to the county auditor of each county where any of the property included within the territorial limits of the land use district is located, and shall be placed upon the tax list for the current year. The county treasurer shall collect the taxes in the same manner as other taxes. When delinquent, the taxes shall draw the same interest and penalties as other taxes. All taxes so levied and collected shall be paid over to the treasurer of the district. Sec. 79. Section 309.22, subsection 1, Code 2023, is amended to read as follows: 1. On or before the fifteenth day of April May 15 of each year the board of supervisors, with the assistance of the county engineer, shall, subject to the approval of the department, adopt a secondary road construction program which shall include a project accomplishment list for the next fiscal year, and a project priority list for the succeeding four fiscal years based upon the construction funds, local secondary and farm-to-market, estimated to be available for the period. Subject to departmental approval, any project on the approved priority list may be advanced to and constructed in
House File 718, p. 42 the accomplishment year and the project accomplishment list may be revised due to unforeseen conditions. Sec. 80. Section 331.422, unnumbered paragraph 1, Code 2023, is amended to read as follows: Subject to this section and sections 331.423 through 331.426 or as otherwise provided by state law, the board of each county shall certify property taxes annually at its March April session to be levied for county purposes as follows: Sec. 81. Section 331.434, unnumbered paragraph 1, Code 2023, is amended to read as follows: Annually, the board of each county, subject to section 331.403, subsection 4 , sections 331.423 through 331.426 , section 331.433A , the applicable portions of chapter 24, and other applicable state law, shall prepare and adopt a budget, certify taxes, and provide appropriations as follows: Sec. 82. Section 331.434, subsection 3, Code 2023, is amended to read as follows: 3. Following, and not until, adoption of the resolution under section 331.433A , the requirements of section 24.2A are completed, the board shall set a time and place for a public hearing on the budget before the final certification date and shall publish notice of the hearing not less than ten nor more than twenty days prior to the hearing in the county newspapers selected under chapter 349 . A summary of the proposed budget and a description of the procedure for protesting the county budget under section 331.436 , in the form prescribed by the director of the department of management, shall be included in the notice. Proof of publication of the notice under this subsection 3 and a copy of the resolution adopted under section 331.433A shall be filed with and preserved by the county auditor. A levy is not valid unless and until the notice is published and the notice and resolution adopted under section 331.433A are filed individual statements under section 24.2A are mailed . The department of management shall prescribe the form for the public hearing notice for use by counties. Sec. 83. Section 331.434, subsection 5, paragraph a, Code 2023, is amended to read as follows: a. After the hearing, the board shall adopt by resolution a budget and certificate of taxes for the next fiscal year
House File 718, p. 43 and shall direct the auditor to properly certify and file the budget and certificate of taxes as adopted. The board shall not adopt a tax in excess of the estimate published or the applicable amounts specified in the resolution adopted under section 331.433A , except a tax which is approved by a vote of the people, and a greater tax than that adopted shall not be levied or collected. A county budget and certificate of taxes adopted for the following fiscal year becomes effective on the first day of that year. Sec. 84. Section 331.434, subsection 7, Code 2023, is amended to read as follows: 7. Taxes levied by a county whose budget is certified after March 31 April 30 shall be limited to the prior year’s budget amount. However, this penalty may be waived by the director of the department of management if the county demonstrates that the March 31 deadline was missed because of circumstances beyond the control of the county. Sec. 85. Section 331.435, subsection 2, Code 2023, is amended to read as follows: 2. The board shall prepare and adopt a budget amendment in the same manner as the original budget as provided in section 331.434 , but excluding the requirements for adoption of the resolution under section 331.433A mailing individual statements under section 24.2A , and the amendment is subject to protest as provided in section 331.436 , except that the director of the department of management may by rule provide that amendments of certain types or up to certain amounts may be made without public hearing and without being subject to protest. A county budget for the ensuing fiscal year shall be amended by May 31 to allow time for a protest hearing to be held and a decision rendered before June 30. An amendment of a budget after May 31 which is properly appealed but without adequate time for hearing and decision before June 30 is void. Sec. 86. Section 331.436, Code 2023, is amended to read as follows: 331.436 Protest. Protests to the adopted budget must be made in accordance with sections 24.27 through 24.32 as if the county were the municipality under those sections except that the protest must
House File 718, p. 44 be filed no later than April May 10 and the number of people necessary to file a protest under this section shall not be less than one hundred. Sec. 87. Section 347.13, subsection 12, Code 2023, is amended to read as follows: 12. Fix the amount necessary for the improvement and maintenance of the hospital and for support of ambulance service during the ensuing fiscal year, and certify the amount to the county auditor before March 15 April 30 of each year, subject to any limitation in section 347.7 . Sec. 88. Section 358.18, subsection 2, as amended by 2023 Iowa Acts, House File 541, section 1, if enacted, is amended to read as follows: 2. All taxes thus levied by the board of trustees shall be certified by the clerk on or before March 15 April 30 to the county auditor of each county wherein any of the property included within the territorial limits of the sanitary district is located, and shall be placed upon the tax list for the current fiscal year by the auditor or auditors. The county treasurer, or treasurers, of more than one county, shall collect