Bill Text: IA SF634 | 2019-2020 | 88th General Assembly | Enrolled

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Bill Title: A bill for an act relating to local government budgets and property taxation by modifying provisions governing the establishment and approval of county and city budgets, modifying provisions relating to the state appraisal manual, and including applicability provisions. (Formerly SSB 1260.) Effective 7-1-19.

Spectrum: Committee Bill

Status: (Passed) 2019-09-23 - Fiscal note, revised. [SF634 Detail]

Download: Iowa-2019-SF634-Enrolled.html

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Senate File 634 - Enrolled
Senate File 634
AN ACT
RELATING TO LOCAL GOVERNMENT BUDGETS AND PROPERTY TAXATION
BY MODIFYING PROVISIONS GOVERNING THE ESTABLISHMENT AND
APPROVAL OF COUNTY AND CITY BUDGETS, MODIFYING PROVISIONS
RELATING TO THE STATE APPRAISAL MANUAL, AND INCLUDING
APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
COUNTY AND CITY PROPERTY TAX PUBLIC HEARING AND RESOLUTION
Section 1. Section 24.17, unnumbered paragraph 1, Code
2019, is amended to read as follows:
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 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.

Senate File 634, p. 2
Sec. 2. Section 24.27, Code 2019, is amended to read as
follows:
24.27 Protest to budget.
Not later than March 25 , or April 10 for a county or a
city, or April 25 if the municipality is a school district, a
number of persons in any municipality equal to one-fourth of
one percent of those voting for the office of governor, at the
last general election in the municipality, but the number shall
not be less than ten, and the number need not be more than
one hundred persons, who are affected by any proposed budget,
expenditure or tax levy, or by any item thereof, may appeal
from any decision of the certifying board or the levying board
by filing with the county auditor of the county in which the
municipal corporation 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, all appeal time limits shall be extended to
correspond to allowances for a timely filing. Upon the filing
of a protest, the county auditor shall immediately prepare
a true and complete copy of the written protest, together
with the budget, proposed tax levy or expenditure to which
objections are made, and shall transmit them forthwith to the
state board, and shall also send a copy of the protest to the
certifying board or to the levying board, as the case may be.
Sec. 3. Section 24.48, subsection 4, Code 2019, is amended
to read as follows:
4. a. 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 15 31 .
b. The state appeals board shall have officially notified
any county of its approval, modification or rejection of the
county’s request for a suspension of the statutory property tax
levy limitation prior to thirty-five days before March 15.
Sec. 4. Section 76.2, subsection 1, paragraph b, Code 2019,

Senate File 634, p. 3
is amended to read as follows:
b. If the resolution is filed prior to April 1 , or April 15,
if the political subdivision is a county or a city, or May 1, if
the political subdivision is a school district, the annual levy
shall begin with the tax levy for collection commencing July
1 of that year. If the resolution is filed on or after April
1 , or April 15, in the case of a county or a city, or May 1, in
the case of a school district, the annual levy shall begin with
the tax levy for collection in the next succeeding fiscal year.
However, the governing authority of a political subdivision may
adjust a levy of taxes made under this section for the purpose
of adjusting the annual levies and collections for property
severed from the political subdivision, subject to the approval
of the director of the department of management.
Sec. 5. NEW SECTION . 331.433A Resolution establishing
maximum property tax dollars —— notice —— hearing.
1. For purposes of this section, unless the context
otherwise requires:
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 under
the levies specified in subsection 2, paragraph “a” or “b” ,
as applicable, divided by the total assessed value used to
calculate taxes for the budget year.
2. For budget years beginning on or after July 1, 2020,
prior to filing the proposed budget with the auditor under
section 331.434, subsection 2, the board shall adopt a
resolution establishing the total maximum property tax dollars
that may be certified for levy for general county services and
the total maximum property tax dollars that may be certified
for levy for rural county services that includes the following,
as applicable:
a. For general county services, the sum of the property

Senate File 634, p. 4
tax dollars levied under section 331.423, subsection 1,
section 331.424, subsection 1, and those amounts for general
county services under section 331.426, but excluding additions
approved at election under section 331.425.
b. For rural county services, the sum of the property tax
dollars levied under section 331.423, subsection 2, section
331.424, subsection 2, and those amounts for rural county
services under section 331.426, but excluding additions
approved at election under section 331.425.
3. The maximum property tax dollars calculated and approved
by resolution under this section includes those amounts
received by the county as replacement taxes under chapter 437A
or 437B.
4. a. The board shall set a time and place for a public
hearing on the resolution before the date for adoption of the
resolution 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. If the county
has an internet site, the notice shall also be posted and
clearly identified on the county’s internet site for public
viewing beginning on the date of the newspaper publication.
Additionally, if the county maintains a social media account
on one or more social media applications, the public hearing
notice or an electronic link to the public hearing notice
shall be posted on each such account on the same day as the
publication of the notice. All of the following shall be
included in the notice:
(1) The sum of the current fiscal year’s actual property
taxes certified for levy for general county services and the
sum of the current fiscal year’s actual property taxes for
rural county services under the levies specified in subsection
2, paragraphs “a” and “b” , and the current fiscal year’s
combined property tax levy rate for each such amount.
(2) The effective tax rate for general county services and
the effective tax rate for rural county services calculated
using the sum of the current fiscal year’s actual property
taxes certified for levy for general county services and
the sum of the current fiscal year’s actual property taxes
certified for levy for rural county services under the

Senate File 634, p. 5
levies specified in subsection 2, paragraphs “a” and “b” , as
applicable.
(3) The proposed maximum property tax dollars that may be
certified for levy for general county services and certified
for levy for rural county services under the levies specified
in subsection 2, paragraphs “a” and “b” , as applicable, for the
budget year and the proposed corresponding combined property
tax levy rate for each such amount.
(4) If the proposed maximum property tax dollars specified
under subparagraph (3) for either general county services
or rural county services exceeds the current fiscal year’s
actual property tax dollars certified for levy for general
county services or for rural county services as specified in
subparagraph (1), a statement of the major reasons for the
increase.
b. Proof of publication shall be filed with and preserved
by the auditor. The department of management shall prescribe
the form for the public hearing notice for use by counties and
the form for the resolution to be adopted by the board under
subsection 5.
5. a. At the public hearing, the board shall receive oral
or written objections from any resident or property owner
of the county. After all objections have been received and
considered, the board may decrease, but not increase, the
proposed maximum property tax dollar amounts for inclusion in
the resolution and shall adopt the resolution and file the
resolution with the auditor as required under section 331.434,
subsection 3.
b. If the sum of the maximum property tax dollars for the
budget year specified in the resolution for either general
county services or for rural county services under the
levies specified in subsection 2, paragraphs “a” and “b” , as
applicable, exceeds one hundred two percent of the sum of the
current fiscal year’s actual property taxes certified for levy
for general county services or rural county services under the
levies specified in subsection 2, paragraphs “a” and “b” , as
applicable, the board shall be required to adopt the resolution
by a two-thirds majority of the membership of the board.
c. If the county has an internet site, in addition to

Senate File 634, p. 6
filing the resolution with the auditor under section 331.434,
subsection 3, the adopted resolution shall be posted and
clearly identified on the county’s internet site for public
viewing within ten days of approval by the board. The posted
resolution for a budget year shall continue to be accessible
for public viewing on the internet site along with resolutions
posted for all subsequent budget years.
Sec. 6. Section 331.434, unnumbered paragraph 1, Code 2019,
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, and other applicable state law, shall prepare
and adopt a budget, certify taxes, and provide appropriations
as follows:
Sec. 7. Section 331.434, subsection 3, Code 2019, is amended
to read as follows:
3. The Following, and not until adoption of the resolution
under section 331.433A, 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 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. The department of management
shall prescribe the form for the public hearing notice for use
by counties.
Sec. 8. Section 331.434, subsection 5, paragraph a, Code
2019, 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
and shall direct the auditor to properly certify and file the
budget and certificate of taxes as adopted. The board shall

Senate File 634, p. 7
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. 9. Section 331.434, subsection 7, Code 2019, is amended
to read as follows:
7. Taxes levied by a county whose budget is certified after
March 15 31 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 15 31 deadline was missed because of circumstances beyond
the control of the county.
Sec. 10. Section 331.435, Code 2019, is amended to read as
follows:
331.435 Budget amendment.
1. The board may amend the adopted county budget, subject
to sections 331.423 through 331.426 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 .
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, 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. 11. Section 331.436, Code 2019, is amended to read as
follows:
331.436 Protest.

Senate File 634, p. 8
Protests to the adopted budget must be made in accordance
with sections 24.27 through 24.32 as if the county were the
municipality under those sections except that the protest
must be filed no later than April 10 and the number of people
necessary to file a protest under this section shall not be
less than one hundred.
Sec. 12. Section 384.2, unnumbered paragraph 1, Code 2019,
is amended to read as follows:
Except as otherwise provided for special charter cities,
a city’s fiscal year shall be as provided in section 24.2,
subsection 3 . All city property taxes must be certified by a
city to the county auditor on or before the fifteenth day of
March 31 of each year, unless otherwise provided by state law.
However, municipal utilities, if not supported by taxation
or the proceeds of outstanding indebtedness payable from
taxes may, with the council’s consent, choose to operate on a
fiscal year which is the calendar year. The receipt by the
utility of payments from other governmental funds for public
fire protection, street lighting, or other public use of the
utility’s services shall not be deemed support by taxation.
After notice and hearing in the same manner as required for the
city’s regular budget under section 384.16 , the utility budget
must be approved by resolution of the council not later than
twenty days prior to the beginning of the calendar year for
which the budget applies.
Sec. 13. NEW SECTION . 384.15A Resolution establishing
maximum property tax dollars —— notice —— hearing.
1. For purposes of this section, unless the context
otherwise requires:
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 under the
levies specified in subsection 2 divided by the total assessed

Senate File 634, p. 9
value used to calculate taxes for the budget year.
2. For budget years beginning on or after July 1, 2020,
prior to the period of time for distribution of the budget
under section 384.16, subsection 2, the council shall adopt a
resolution establishing the total maximum property tax dollars
that may be certified for levy that includes taxes for city
government purposes under section 384.1, for the city’s trust
and agency fund under section 384.6, subsection 1, for the
city’s emergency fund under section 384.8, and for the levies
authorized under section 384.12, subsections 8, 10, 11, 12, 13,
17, and 21, but excluding additions approved at election under
section 384.12, subsection 19.
3. The maximum property tax dollars calculated and approved
by resolution under this section includes those amounts
received by the city as replacement taxes under chapter 437A
or 437B.
4. a. The council shall set a time and place for a public
hearing on the resolution before the date for adoption of the
resolution and shall publish notice of the hearing 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. If the city has an internet
site, the notice shall also be posted and clearly identified
on the city’s internet site for public viewing beginning on
the date of the newspaper publication or public posting, as
applicable. Additionally, if the city maintains a social media
account on one or more social media applications, the public
hearing notice or an electronic link to the public hearing
notice shall be posted on each such account on the same day as
the publication of the notice. All of the following shall be
included in the notice:
(1) The sum of the current fiscal year’s actual property
taxes certified for levy under the levies specified in
subsection 2 and the current fiscal year’s combined property
tax levy rate for such amount that is applicable to taxable
property in the city other than property used and assessed for
agricultural or horticultural purposes.

Senate File 634, p. 10
(2) The effective tax rate calculated using the sum of
the current fiscal year’s actual property taxes certified for
levy under the levies specified in subsection 2, applicable
to taxable property in the city other than property used and
assessed for agricultural or horticultural purposes.
(3) The sum of the proposed maximum property tax dollars
that may be certified for levy for the budget year under the
levies specified in subsection 2 and the proposed combined
property tax levy rate for such amount applicable to taxable
property in the city other than property used and assessed for
agricultural or horticultural purposes.
(4) If the proposed maximum 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 statement of the major reasons for the
increase.
b. Proof of publication shall be filed with and preserved
by the county auditor. The department of management shall
prescribe the form for the public hearing notice for use by
cities and the form for the resolution to be adopted by the
council under subsection 5.
5. a. At the public hearing, the council shall receive
oral or written objections from any resident or property owner
of the city. After all objections have been received and
considered, the council may decrease, but not increase, the
proposed maximum property tax dollar amount for inclusion in
the resolution and shall adopt the resolution and file the
resolution with the county auditor as required under section
384.16, subsection 3.
b. If the sum of the maximum property tax dollars for
the budget year specified in the resolution under the levies
specified in subsection 2 exceeds one hundred two percent of
the sum of the current fiscal year’s actual property taxes
certified for levy under the levies specified in subsection
2, the council shall be required to adopt the resolution by a
two-thirds majority of the membership of the council.
c. If the city has an internet site, in addition to
filing the resolution with the auditor under section 384.16,
subsection 3, the adopted resolution shall be posted and

Senate File 634, p. 11
clearly identified on the city’s internet site for public
viewing within ten days of approval by the council. The posted
resolution for a budget year shall continue to be accessible
for public viewing on the internet site along with resolutions
posted for all subsequent budget years.
Sec. 14. Section 384.16, unnumbered paragraph 1, Code 2019,
is amended to read as follows:
Annually, a city that has satisfied the requirements of
section 384.15A and section 384.22, subsection 3 , shall prepare
and adopt a budget, and shall certify taxes as follows:
Sec. 15. Section 384.16, subsections 3, 5, and 6, Code 2019,
are amended to read as follows:
3. The Following, and not until adoption of the resolution
under section 384.15A, the council shall set a time and place
for public hearing on the budget before the final certification
date and shall publish notice of the hearing not less than ten
nor more than twenty days before the hearing in a newspaper
published at least once weekly and having general circulation
in the city. However, if the city has a population of two
hundred or less, publication may be made by posting in three
public places in the city. A summary of the proposed budget
and a description of the procedure for protesting the city
budget under section 384.19, in the form prescribed by the
director of the department of management, shall be included
in the notice. Proof of publication of the notice under this
subsection 3 and a copy of the resolution adopted under section
384.15A must be filed with the county auditor. The department
of management shall prescribe the form for the public hearing
notice for use by cities.
5. After the hearing, the council shall adopt by resolution
a budget for at least the next fiscal year, and the clerk
shall certify the necessary tax levy for the next fiscal year
to the county auditor and the county board of supervisors.
The tax levy certified may be less than but not more than
the amount estimated in the proposed budget submitted at
the final hearing or the applicable amount specified in the
resolution adopted under section 384.15A , unless an additional
tax levy is approved at a city election. Two copies each of
the detailed budget as adopted and of the tax certificate must

Senate File 634, p. 12
be transmitted to the county auditor, who shall complete the
certificates and transmit a copy of each to the department of
management.
6. Taxes levied by a city whose budget is certified after
March 15 31 shall be limited to the prior year’s budget amount.
However, this penalty may be waived by the director of the
department of management if the city demonstrates that the
March 15 31 deadline was missed because of circumstances beyond
the control of the city.
Sec. 16. Section 384.17, Code 2019, is amended to read as
follows:
384.17 Levy by county.
At the time required by law, the county board of supervisors
shall levy the taxes necessary for each city fund for the
following fiscal year. The levy must be as shown in the
adopted city budget and as certified by the clerk, subject to
any changes made after a protest hearing, and any additional
tax rates approved at a city election. A city levy is not valid
until proof of publication or posting of notice of a budget
hearing is under section 384.16, subsection 3, and the notice
and resolution adopted under section 384.15A are filed with the
county auditor.
Sec. 17. APPLICABILITY. This division of this Act applies
to city and county budgets and taxes for fiscal years beginning
on or after July 1, 2020.
DIVISION II
STATE APPRAISAL MANUAL
Sec. 18. Section 421.17, subsection 17, Code 2019, is
amended to read as follows:
17. To prepare and issue a state appraisal manual which each
county and city assessor shall use in assessing and valuing all
classes of property in the state. The appraisal manual shall
be continuously revised and the manual and revisions shall be
issued to the county and city assessors in such form and manner
as prescribed by the director. Each county and city assessor
shall use the most recently issued manual in assessing and
valuing all classes of property in the state within two years
of the publication date of the most recently issued manual.
The department may grant an extension of up to two years to

Senate File 634, p. 13
a county or city assessor upon request and demonstration of
substantial hardship by an assessor.
______________________________ ______________________________
CHARLES SCHNEIDER LINDA UPMEYER
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 634, Eighty-eighth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2019 ______________________________
KIM REYNOLDS
Governor