What changed in SF 634

1 passage reworded, 66 added and 222 removed; 20 of 309 unchanged.

Removed AddedIntroduced textText as passedAmendments

DIVISION I COUNTY AND CITY BUDGET LIMITATIONS

Section 1. Section 23A.2, subsection 10, paragraph h, Code 2019, is amended to read as follows:

h. The performance of an activity listed in section 331.424, Code 2019, as a service for which a supplemental levy county may be certified include in its budget.

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2. Section 28M.5, subsections 1 and 2, Code 2019, are 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 total of all the tax levies levy imposed in the city pursuant to section 384.12, subsection 10, 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 reduce the city’s maximum amount of property tax dollars under section 384.1, subsection 3, paragraph “b”, and for a county participating in a regional transit district, except as provided in subsection 2, the tax levy imposed in the unincorporated area pursuant to this section shall reduce the county’s maximum amount of property tax dollars that may be levied for rural county services under section 331.423, subsection 3, paragraph “c”.

2. If a regional transit district budget allocates revenue responsibilities to the board of supervisors of a participating county, the amount of the regional transit district levy that is the responsibility of the participating county shall be deducted from the maximum rates amount of taxes authorized to be levied by the county pursuant to section 331.423, subsections 1 and 2 subsection 3, paragraphs “b” and “c”, as applicable, unless the county meets its revenue responsibilities as allocated in the budget from other available revenue sources. However, for a regional transit district that includes a county with a population of less than three hundred thousand, the amount of the regional transit district levy that is the responsibility of such participating county shall be deducted from the maximum rate amount of taxes authorized to be levied by the county pursuant to section 331.423, subsection 1 3, paragraph “b”.

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3. Section 29C.17, subsection 2, paragraph a, Code 2019, is amended by striking the paragraph and inserting in lieu thereof the following:

a. An appropriation from the county general fund under section 331.427.

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4. Section 29C.17, subsection 2, paragraph b, Code 2019, is amended to read as follows:

b. Per capita allocation funded from city and county general funds or by a combination of city and county special levies which may be apportioned among the member jurisdictions.

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5. Section 123.38, subsection 2, paragraph b, Code 2019, is amended to read as follows:

b. For purposes of this subsection, any portion of license or permit fees used for the purposes authorized in section 331.424, subsection 1, paragraph “a”, subparagraphs (1) and (2), Code 2019, and in section 331.424A, shall not be deemed received either by the division or by a local authority.

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6. Section 218.99, Code 2019, is amended to read as follows: 218.99 Counties to be notified of patients’ personal accounts. The administrator in control of a state institution shall direct the business manager of each institution under the administrator’s jurisdiction which is mentioned in section 331.424, subsection 1, paragraph “a”, subparagraphs (1) and (2), and for which services are paid under section 331.424A, to quarterly inform the county of residence of any patient or resident who has an amount in excess of two hundred dollars on account in the patients’ personal deposit fund and the amount on deposit. The administrators shall direct the business manager to further notify the county of residence at least fifteen days before the release of funds in excess of two hundred dollars or upon the death of the patient or resident. If the patient or resident has no residency in this state or the person’s residency is unknown, notice shall be made to the director of human services and the administrator in control of the institution involved.

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7. Section 331.263, subsection 2, Code 2019, is amended to read as follows:

2. The governing body of the community commonwealth shall have the authority to levy county taxes and shall have the authority to levy city taxes to the extent the city tax levy authority is transferred by the charter to the community commonwealth. A city participating in the community commonwealth shall transfer a portion of the city’s tax levy authorized under section 384.1 or 384.12, whichever is applicable, to the governing body of the community commonwealth. The maximum rates amount of taxes authorized to be levied under sections section 384.1 and the maximum amount of taxes authorized to be levied under section 384.12 by a city participating in the community commonwealth shall be reduced by an amount equal to the rates of the same or similar taxes levied in the city by the governing body of the community commonwealth.

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8. Section 331.301, subsection 12, Code 2019, is amended to read as follows:

12. The board of supervisors may credit funds to a reserve for the purposes authorized by subsection 11 of this section; section 331.424, subsection 1, paragraph “a”, subparagraph (5); and section 331.441, subsection 2, paragraph “b”. Moneys credited to the reserve, and interest earned on such moneys, shall remain in the reserve until expended for purposes authorized by subsection 11 of this section; section 331.424, subsection 1, paragraph “a”, subparagraph (5); or section 331.441, subsection 2, paragraph “b”.

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DIVISION I COUNTY AND CITY PROPERTY TAX PUBLIC HEARING AND RESOLUTION

9. Section 331.421, subsections 1 and 10, Code 2019, are amended by striking the subsections.

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.

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10. Section 331.422, unnumbered paragraph 1, Code 2019, is amended to read as follows: Subject to this section and sections 331.423 through 331.426, 331.423A, 331.424A, 331.424B, and 331.424C 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:

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.

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11. Section 331.423, Code 2019, is amended by striking the section and inserting in lieu thereof the following: 331.423 Property tax dollars —— maximums.

1. Annually, the board shall determine separate property tax levy limits to pay for general county services and rural county services in accordance with this section. The property tax levies separately certified for general county services and rural county services under section 331.434 shall not raise property tax dollars that exceed the amounts determined under this section.

2. For purposes of this section, unless the context otherwise requires:

a. “Annual growth factor” means the annual growth percentage determined under subsection 6 plus one hundred percent.

b. “Boundary adjustment” means annexation, severance, incorporation, or discontinuance as those terms are defined in section 368.1.

c. “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified.

d. “Current fiscal year” is the fiscal year ending during the calendar year in which a budget is certified.

e. “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 product of the current fiscal year’s actual property tax dollars certified for levy multiplied by the annual growth factor divided by the difference of the total assessed value used to calculate taxes for the budget year minus the net new valuation for the budget year.

f. “Net new valuation” means the net increase from the current fiscal year to the budget year in assessed valuation due to the following, the amount of each as certified by the county auditor to the department of management by January 1 preceding the applicable fiscal year, excluding amounts attributable to a valuation release:

(1) New construction.

(2) Additions or improvements to existing structures that are not normal and necessary repairs under section 441.21, subsection 8.

(3) Net boundary adjustment.

(4) A municipality no longer dividing tax revenues in an urban renewal area as provided in section 403.19 or a community college no longer dividing revenues as provided in section 260E.4.

(5) That portion of taxable property located in an urban revitalization area on which an exemption was allowed and such exemption has expired.

(6) New exemptions for existing properties and the expiration or removal of property exemptions.

g. “Net new valuation taxes” means an amount equal to the effective property tax rate for general county services or for rural county services, as applicable, multiplied by net new valuation for the budget year.

h. “Valuation release” means the valuation that is released in any one year from either a division of revenue under section 260E.4 or an urban renewal area for which taxes were being divided under section 403.19 if the property for the valuation being released remains subject to the division of revenue under section 260E.4 or remains part of the urban renewal area that is subject to a division of revenue under section 403.19.

3.

a. For the fiscal year beginning July 1, 2020, and subsequent fiscal years, the maximum amount of property tax dollars which may be certified for levy by a county for general county services and rural county services shall be the maximum property tax dollars calculated under paragraphs “b” and “c”, respectively. The amount of property tax dollars calculated under this subsection and determined under subsection 4 includes those amounts received by the county as replacement taxes under chapter 437A or 437B.

b. The maximum property tax dollars that may be levied for general county services is an amount equal to the sum of the following:

(1) The annual growth factor times the current fiscal year’s actual property tax dollars certified for levy for general county services.

(2) The amount of net new valuation taxes in the county.

c. The maximum property tax dollars that may be levied for rural county services is an amount equal to the sum of the following minus the amount certified for levy in unincorporated areas of the county under sections 28E.22 and 28M.5:

(1) The annual growth factor times the current fiscal year’s actual property tax dollars certified for levy for rural county services.

(2) The amount of net new valuation taxes in the unincorporated area of the county.

3. Section 24.48, subsection 4, Code 2019, is amended to read as follows:

4.

a. For purposes of calculating maximum property tax dollars for general county services for the fiscal year beginning July 1, 2020, only, the term “current fiscal year’s actual property tax dollars” shall mean the total amount of property tax dollars certified by the county for general county services for the fiscal year beginning July 1, 2019, or the fiscal year beginning July 1, 2018, whichever is greater, including amounts certified under section 331.424, subsection 1, Code 2019, but excluding that portion of the amounts certified for the payment of benefits under chapter 97B or other pension or retirement systems that are associated with salaries for general county services.

b. For purposes of calculating maximum property tax dollars for rural county services for the fiscal year beginning July 1, 2020, only, the term “current fiscal year’s actual property tax dollars” shall mean the total amount of property tax dollars certified by the county for rural county services plus the amount certified for levy in the unincorporated areas of the county under sections 28E.22 and 28M.5 for the fiscal year beginning July 1, 2019, or the fiscal year beginning July 1, 2018, whichever is greater, including amounts certified under section 331.424, subsection 2, Code 2019, but excluding that portion of the amounts certified for the payment of benefits under chapter 97B or other pension or retirement systems that are associated with salaries for rural county services.

c. For purposes of calculating maximum property tax dollars for a fiscal year beginning on or after July 1, 2021, a county for which the county’s taxes were not certified back by the department of management under section 24.17 for the current fiscal year due to an act or omission of the county, the current fiscal year’s actual property tax dollars certified for levy shall be equal to the amount certified for levy for the fiscal year immediately preceding the current fiscal year or the amount under paragraph “a” or “b”, if applicable.

5. Property taxes certified for retirement and pension expenses in section 331.423A, mental health and disabilities services in section 331.424A, the cemetery levy under section 331.424B, the emergency services fund in section 331.424C, the debt service fund in section 331.430, and any capital projects fund established by the county for deposit of bond, loan, or note proceeds are not included in the maximum amount of property tax dollars that may be certified for a budget year under subsection 3.

6.

a. Except as provided in this subsection, the annual growth percentage for each county for each fiscal year beginning on or after July 1, 2020, is zero percent.

b. The board may, by resolution, annually approve an annual growth percentage in excess of the percentage in paragraph “a”, but not to exceed two percent, if the board publishes in accordance with section 331.305 a notice of the proposed resolution that includes the proposed annual growth percentage, the purposes for which the additional property tax revenue will be used, and the time and place of a public meeting at which the board proposes to take action on the resolution. At the meeting, and before approval of the resolution, 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 either take action on the resolution or vote to abandon the resolution.

c.

(1) Following approval of a resolution under paragraph “b” that establishes an annual growth percentage of two percent, the board may, by a separate resolution approved by a two-thirds majority of the board, approve up to one additional percentage point for the annual growth percentage if the board publishes in accordance with section 331.305 a notice of the proposed resolution that includes the proposed annual growth percentage, the purposes for which the additional property tax revenue will be used, and the time and place of a public meeting at which the board proposes to take action on the resolution. At the meeting, and before approval of the resolution, 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 either take action on the resolution or vote to abandon the resolution.

(2) If at any time within twenty days after the meeting under subparagraph (1), a petition is filed with the county auditor signed by eligible electors of the county equal in number to the lesser of one thousand or ten percent of the persons in the county who voted for the office of president of the United States at the last preceding general election that had such office on the ballot, asking that the question of increasing the annual growth percentage under this paragraph “c” be submitted to the registered voters of the county, the board shall either vote to abandon the resolution or shall direct the county commissioner of elections to call a special election upon the question. If, however, a valid petition is filed under this subsection and the notice requirement of subparagraph (3) cannot be satisfied, the board shall declare the proposal to be abandoned.

(3) The special election, if called, is subject to the following:

(a) The board must give at least thirty-two days’ notice to the county commissioner of elections that the special election is to be held. In no case, however, shall a notice be given to the county commissioner of elections after December 31 for an election on a proposition to increase the annual growth percentage under this paragraph “c” for the fiscal year beginning in the next calendar year.

(b) The proposition is approved if it receives a favorable majority of the votes cast on the proposition.

(c) The canvass shall be held beginning at 1:00 p.m. on the second day which is not a holiday following the special election. Notice of the special election shall be published at least once in a newspaper as specified in section 331.305 prior to the date of the special election.

d. Each notice published under this subsection and the ballot for an election held under paragraph “c” shall include the applicable property tax levy rate for the current fiscal year, the applicable property tax levy rate for the budget year if the annual growth percentage is zero percent, and the applicable property tax levy rate if the proposed annual growth percentage is adopted by resolution or approved at election, as applicable.

7. The department of management, in consultation with the county finance committee, shall adopt rules to administer this section. The department shall prescribe forms to be used by counties when making calculations required by this section.

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12.

NEW SECTION. 331.423A Retirement system expenses —— levy.

1. To the extent that the general county services levy under section 331.423, subsection 3, paragraph “b”, is insufficient to meet the county’s needs for retirement expenses under chapter 97B or other pension or retirement systems that are associated with salaries for general county services, the board may certify a levy each year in an amount necessary to meet those needs.

2. To the extent that the rural county services levy under section 331.423, subsection 3, paragraph “c”, is insufficient to meet the county’s needs for retirement expenses under chapter 97B or other pension or retirement systems that are associated with salaries for rural county services, the board may certify a levy each year in an amount necessary to meet those needs.

3. The amounts certified for levy under this section shall be credited to the general fund or rural services fund, as applicable, but are not subject to the limitation on property tax dollars for general county services or rural county services under section 331.423.

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13. Section 331.424A, subsection 6, Code 2019, is amended to read as follows:

6. For each fiscal year, the county shall certify a levy for payment of services. For each fiscal year, county revenues from taxes imposed by the county credited to the county services fund shall not exceed an amount equal to the county budgeted amount for the fiscal year. A levy certified under this section is not subject to the appeal provisions of section 331.426 or to any other provision in law authorizing a county to exceed, increase, or appeal a property tax levy limit.

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14. Section 331.427, subsection 3, paragraph l, Code 2019, is amended to read as follows:

l. Services listed in section 331.424, subsection 1, Code 2019, and section 331.554.

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15. Section 331.428, subsection 2, paragraph d, Code 2019, is amended to read as follows:

d. Services listed under section 331.424, subsection 2, Code 2019.

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16. Section 331.429, subsection 1, paragraphs a and b, Code 2019, are amended to read as follows:

a. Transfers from the general fund not to exceed in any year the dollar equivalent of a tax of sixteen and seven-eighths cents per thousand dollars of assessed value on all taxable property in the county multiplied by the ratio of current taxes actually collected and apportioned for the general basic county services levy to the total general basic county services levy for the current year, and an amount equivalent to the moneys derived by the general fund from military service tax credits under chapter 426A, manufactured or mobile home taxes under section 435.22, and delinquent taxes for prior years collected and apportioned to the general basic county services fund in the current year, multiplied by the ratio of sixteen and seven-eighths cents to three dollars and fifty cents. The limit on transfers in this paragraph applies only to property tax revenue and is not a limit on transfers of revenue generated from sources other than property taxes.

b. Transfers from the rural services fund not to exceed in any year the dollar equivalent of a tax of three dollars and three-eighths cents per thousand dollars of assessed value on all taxable property not located within the corporate limits of a city in the county multiplied by the ratio of current taxes actually collected and apportioned for the rural county services basic levy to the total rural county services basic levy for the current year and an amount equivalent to the moneys derived by the rural services fund from military service tax credits under chapter 426A, manufactured or mobile home taxes under section 435.22, and delinquent taxes for prior years collected and apportioned to the rural county services basic fund in the current year, multiplied by the ratio of three dollars and three-eighths cents to three dollars and ninety-five cents. The limit on transfers in this paragraph applies only to property tax revenue and is not a limit on transfers of revenue generated from sources other than property taxes.

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17. 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, 331.423A, 331.424A, 331.424B, and 331.424C, and other applicable state law, shall prepare and adopt a budget, certify taxes, and provide appropriations as follows:

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18. 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 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 deadline was missed because of circumstances beyond the control of the county or as the result of an election held under section 331.423, subsection 6.

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19. Section 331.435, unnumbered paragraph 1, Code 2019, is amended to read as follows: The board may amend the adopted county budget, subject to sections 331.423 through 331.426, 331.423A, 331.424A, 331.424B, and 331.424C 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.

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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.

20. Section 364.25, Code 2019, is amended to read as follows: 364.25 Retiree health care. A city may provide health or medical insurance coverage or supplemental health or medical insurance coverage to retired employees of the city. A city providing health or medical insurance coverage pursuant to this section may establish such requirements or restrictions concerning the coverage provided as the city may adopt. If coverage is provided, the cost of the health or medical insurance coverage may be paid from moneys held in a trust and agency fund established pursuant to section 384.6, or out of an appropriation from the city general fund for this purpose.

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.

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4. Section 76.2, subsection 1, paragraph b, Code 2019, is amended to read as follows:

21. Section 373.10, Code 2019, is amended to read as follows: 373.10 Taxing authority. The metropolitan council shall have the authority to levy city taxes to the extent the city tax levy authority is transferred by the charter to the metropolitan council. A member city shall transfer a portion of the city’s tax levy authorized under section 384.1 or 384.12, whichever is applicable, to the metropolitan council. The maximum rates amount of taxes authorized to be levied under sections section 384.1 and the taxes authorized to be levied under section 384.12 by a member city shall be reduced by an amount equal to the rates of the same or similar taxes levied in the city by the metropolitan council.

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.

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22. Section 384.1, Code 2019, is amended by striking the section and inserting in lieu thereof the following: 384.1 Property tax dollars —— maximum.

1. A city shall certify taxes to be levied by the city on all taxable property within the city limits, for all city government purposes. Annually, the city council may certify a basic levy for city government purposes, subject to the limitation on property tax dollars provided in this section.

2. For purposes of this section, unless the context otherwise requires:

a. “Annual growth factor” means the annual growth percentage determined under subsection 7 plus one hundred percent.

b. “Boundary adjustment” means annexation, severance, incorporation, or discontinuance as those terms are defined in section 368.1.

c. “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified.

d. “Current fiscal year” is the fiscal year ending during the calendar year in which a budget is certified.

e. “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 product of the current fiscal year’s actual property tax dollars certified for levy multiplied by the annual growth factor divided by the difference of the total assessed value used to calculate taxes for the budget year minus the net new valuation for the budget year.

f. “Net new valuation” means the net increase from the current fiscal year to the budget year in assessed valuation due to the following, the amount of each as certified by the county auditor to the department of management by January 1 preceding the applicable fiscal year, excluding amounts attributable to a valuation release:

(1) New construction.

(2) Additions or improvements to existing structures that are not normal and necessary repairs under section 441.21, subsection 8.

(3) Net boundary adjustment.

(4) A municipality no longer dividing tax revenues in an urban renewal area as provided in section 403.19 or a community college no longer dividing revenues as provided in section 260E.4.

5.

(5) That portion of taxable property located in an urban revitalization area on which an exemption was allowed and such exemption has expired.

NEW SECTION. 331.433A Resolution establishing maximum property tax dollars —— notice —— hearing.

(6) New exemptions for existing properties and the expiration or removal of property exemptions.

1. For purposes of this section, unless the context otherwise requires:

g. “Net new valuation taxes” means an amount equal to the effective property tax rate for the city general fund multiplied by net new valuation for the budget year.

a. “Budget year” is the fiscal year beginning during the calendar year in which a budget is certified.

h. “Valuation release” means the valuation that is released in any one year from either a division of revenue under section 260E.4 or an urban renewal area for which taxes were being divided under section 403.19 if the property for the valuation being released remains subject to the division of revenue under section 260E.4 or remains part of the urban renewal area that is subject to a division of revenue under section 403.19.

b. “Current fiscal year” is the fiscal year ending during the calendar year in which a budget for the budget year is certified.

3.

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.

a. For the fiscal year beginning July 1, 2020, and subsequent fiscal years, the maximum amount of property tax dollars which may be certified for levy by a city for the general fund shall be the maximum property tax dollars calculated under paragraph “b”. The amount of property tax dollars calculated under this subsection and determined under subsection 4 includes those amounts received by the city as replacement taxes under chapter 437A or 437B.

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:

b. The maximum property tax dollars that may be levied for deposit in the general fund is an amount equal to the sum of the following minus the amount certified for levy within the city under sections 28E.22 and 28M.5:

a. For general county services, the sum of the property 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.

(1) The annual growth factor times the current fiscal year’s actual property tax dollars certified for levy for the general fund.

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.

(2) The amount of net new valuation taxes in the city.

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. For purposes of calculating maximum property tax dollars for the city general fund for the fiscal year beginning July 1, 2020, only, the term “current fiscal year’s actual property tax dollars” shall mean the sum of the total amount of property tax dollars certified by the city for the city’s general fund under section 384.1, Code 2019, plus the total amount of property tax dollars certified for the city’s trust and agency fund under section 384.6, subsection 1, Code 2019, but excluding that portion of the amounts certified for the payment of benefits under chapter 97B, chapter 411, chapter 412, or other pension or retirement systems, for the city’s emergency fund under section 384.8, Code 2019, for the levies authorized under section 384.12, subsections 8, 10, 11, 12, 13, 17, and 21, Code 2019, and certified for levy within the city under sections 28E.22 and 28M.5 for the fiscal year beginning July 1, 2018, or the fiscal year beginning July 1, 2019, whichever is greater.

b. For purposes of calculating maximum property tax dollars for a fiscal year beginning on or after July 1, 2021, a city for which the city’s taxes were not certified back by the department of management under section 24.17 for the current fiscal year due to an act or omission of the city, the current fiscal year’s actual property tax dollars certified for levy shall be equal to the amount certified for levy for the fiscal year immediately preceding the current fiscal year or the amount under paragraph “a”, if applicable.

5. Property taxes certified for retirement and pension expenses in section 384.3B, deposit in the debt service fund in section 384.4, capital improvements reserve fund in section 384.7, any capital projects fund established by the city for deposit of bond, loan, or note proceeds, and property taxes collected from a levy in section 384.12, are not counted against the maximum amount of property tax dollars that may be certified for a budget year under subsection 3.

6. Notwithstanding the maximum amount of taxes a city may certify for levy, the tax levied by a city on tracts of land and improvements on the tracts of land 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 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.

7.

a. Except as provided in this subsection, the annual growth percentage for each city for each fiscal year beginning on or after July 1, 2020, is zero percent.

b. The city council may, by resolution, annually approve an annual growth percentage in excess of the percentage in paragraph “a”, but not to exceed two percent, if the council publishes in accordance with section 362.3 a notice of the proposed resolution that includes the proposed annual growth percentage, the purposes for which the additional property tax revenue will be used, and the time and place of a public meeting at which the council proposes to take action on the resolution. At the meeting, and before approval of the resolution, 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 either take action on the resolution or vote to abandon the resolution.

c.

(1) Following approval of a resolution under paragraph “b” that establishes an annual growth percentage of two percent, the city council may, by a separate resolution approved by a two-thirds majority of the council, approve up to one additional percentage point for the annual growth percentage if the council publishes in accordance with section 362.3 a notice of the proposed resolution that includes the proposed annual growth percentage, the purposes for which the additional property tax revenue will be used, and the time and place of a public meeting at which the council proposes to take action on the resolution. At the meeting, and before approval of the resolution, 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 either take action on the resolution or vote to abandon the resolution.

(2) If at any time within twenty days after the meeting under subparagraph (1), a petition is filed with the city clerk signed by eligible electors of the city equal in number to the lesser of one thousand or ten percent of the persons in the city who voted for the office of president of the United States at the last preceding general election that had such office on the ballot, asking that the question of increasing the annual growth percentage under this paragraph “c” be submitted to the registered voters of the city, the council shall either vote to abandon the resolution or shall direct the county commissioner of elections to call a special election upon the question. If, however, a valid petition is filed under this subsection and the notice requirement of subparagraph (3) cannot be satisfied, the council shall declare the proposal to be abandoned.

(3) The special election, if called, is subject to the following:

(a) The city council must give at least thirty-two days’ notice to the county commissioner of elections that the special election is to be held. In no case, however, shall a notice be given to the county commissioner of elections after December 31 for an election on a proposition to increase the annual growth percentage under this paragraph “c” for the fiscal year beginning in the next calendar year.

(b) The proposition is approved if it receives a favorable majority of the votes cast on the proposition.

(c) The canvass shall be held beginning at 1:00 p.m. on the second day which is not a holiday following the special election. Notice of the special election shall be published at least once in a newspaper as specified in section 362.3 prior to the date of the special election.

d. Each notice published under this subsection and the ballot for an election held under paragraph “c” shall include the property tax levy rate per one thousand dollars for the current fiscal year, the property tax levy rate for the budget year if the annual growth percentage is zero percent, and the property tax levy rate if the proposed annual growth percentage is adopted by resolution or approved at election, as applicable.

8. The department of management, in consultation with the city finance committee, shall adopt rules to administer this section. The department shall prescribe forms to be used by cities when making calculations required by this section.

Sec.

23. Section 384.3, Code 2019, is amended to read as follows: 384.3 General fund. All moneys received for city government purposes from taxes and other sources must be credited to the general fund of the city, except that moneys received for the purposes of the debt service fund, the trust and agency funds, the capital improvements reserve fund, the emergency fund and other funds established by state law must be deposited as otherwise required or authorized by state law. All moneys received by a city from the federal government must be reported to the department of management who shall transmit a copy to the legislative services agency.

Sec.

24.

NEW SECTION. 384.3B Retirement system expenses —— levy.

1. To the extent that the city’s basic levy for city government purposes under section 384.1, subsection 3, is insufficient to meet the city’s needs for retirement expenses under chapter 97B, chapter 411, chapter 412, or other pension or retirement systems that are associated with salaries of the city’s employees, including the types of retirement or pension expenses authorized for payment by cities under section 384.6, subsection 1, Code 2019, the council may certify a levy each year in an amount necessary to meet those needs.

2. The amounts certified for levy under this section shall be credited to the general fund of the city, but are not subject to the city’s basic levy limitation on property tax dollars for city government purposes under section 384.1.

Sec.

25. Section 384.6, Code 2019, is amended to read as follows: 384.6 Trust and agency funds. A city may establish trust and agency funds for the following purposes:

1. Accounting for pension and related employee benefit funds as provided by the city finance committee. A city may certify taxes to be levied for a trust and agency fund in the amount necessary to meet its obligations.

a. A city may make contributions to a retirement system other than the Iowa public employees’ retirement system for its city manager, or city administrator performing the duties of city manager, in an annual amount not to exceed the amount that would have been contributed by the employer under section 97B.11.

b. If a police chief or fire chief has submitted a written request to the board of trustees to be exempt from chapter 411, authorized in section 411.3, subsection 1, a city shall make contributions for the chief, in an amount not to exceed the amount that would have been contributed by the city under section 411.8, subsection 1, paragraph “a”, to the international city management association retirement corporation.

c. A city which has contracted with another city or governmental entity for the provision of public safety services, including but not limited to police protection, fire protection, ambulance, or hazardous materials response, may, pursuant to contract, make contributions for pension and related employee benefits for personnel of the other city or governmental entity providing such services to the city. The city may make such contributions in an annual amount not to exceed the amount of contributions for pension and related employee benefits that would otherwise be paid by the other city or governmental entity for such personnel.

2.

1. Accounting for gifts received by the city for a particular purpose.

3.

2. Accounting for money and property received and handled by the city as trustee or custodian or in the capacity of an agent.

Sec.

26. Section 384.12, subsections 8, 10, 11, 12, 13, 17, and 21, Code 2019, are amended by striking the subsections.

Sec.

27. Section 384.12, subsection 19, unnumbered paragraph 1, Code 2019, is amended to read as follows: A tax that exceeds any tax levy limit within this chapter other than the limitation established pursuant to section 384.1, 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.

Sec.

28. Section 384.15, subsection 1, Code 2019, is amended to read as follows:

1. Promulgate rules relating to budget amendments and the procedures for transferring moneys between funds, and other rules necessary or desirable in order to exercise its powers and perform its duties, including rules necessary to implement section 384.6, subsection 1 384.3B. The committee’s rules are subject to chapter 17A as applicable.

Sec.

29. Section 384.16, subsection 6, Code 2019, is amended to read as follows:

6. Taxes levied by a city whose budget is certified after March 15 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 deadline was missed because of circumstances beyond the control of the city or as the result of an election held under section 384.1, subsection 7.

Sec.

30. Section 384.18, subsection 1, paragraph c, Code 2019, is amended to read as follows:

c. To permit transfers from the debt service fund, the capital improvements reserve fund, the emergency fund, or other funds established by state law, to any other city fund, unless specifically prohibited by state law.

Sec.

31. Section 384.110, Code 2019, 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; 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; or section 384.24, subsection 3, paragraph “s”.

Sec.

32. Section 386.8, Code 2019, is amended to read as follows: 386.8 Operation tax. A city may establish a self-supported improvement district operation fund, and may certify taxes not to exceed the rate limitation as established in the ordinance creating the district, or any amendment thereto, each year to be levied for the fund against all of the property in the district, for the purpose of paying the administrative expenses of the district, which may include but are not limited to administrative personnel salaries, a separate administrative office, planning costs including consultation fees, engineering fees, architectural fees, and legal fees and all other expenses reasonably associated with the administration of the district and the fulfilling of the purposes of the district. The taxes levied for this fund may also be used for the purpose of paying maintenance expenses of improvements or self-liquidating improvements for a specified length of time with one or more options to renew if such is clearly stated in the petition which requests the council to authorize construction of the improvement or self-liquidating improvement, whether or not such petition is combined with the petition requesting creation of a district. Parcels of property which are assessed as residential property for property tax purposes are exempt from the tax levied under this section except residential properties within a duly designated historic district. A tax levied under this section is not subject to the levy limitation in section 384.1.

Sec.

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:

33. Section 386.9, Code 2019, is amended to read as follows: 386.9 Capital improvement tax. A city may establish a capital improvement fund for a district and may certify taxes, not to exceed the rate established by the ordinance creating the district, or any subsequent amendment thereto, each year to be levied for the fund against all of the property in the district, for the purpose of accumulating moneys for the financing or payment of a part or all of the costs of any improvement or self-liquidating improvement. However, parcels of property which are assessed as residential property for property tax purposes are exempt from the tax levied under this section except residential properties within a duly designated historic district. A tax levied under this section is not subject to the levy limitations in section 384.1 or 384.7.

(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.

Sec.

(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 levies specified in subsection 2, paragraphs “a” and “b”, as applicable.

34. Section 400.8, subsection 1, Code 2019, is amended to read as follows:

(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.

1. The commission, when necessary under the rules, including minimum and maximum age limits, which shall be prescribed and published in advance by the commission and posted in the city hall, shall hold examinations for the purpose of determining the qualifications of applicants for positions under civil service, other than promotions, which examinations shall be practical in character and shall relate to matters which will fairly test the mental and physical ability of the applicant to discharge the duties of the position to which the applicant seeks appointment. The physical examination of applicants for appointment to the positions of police officer, police matron, or fire fighter shall be held in accordance with medical protocols established by the board of trustees of the fire and police retirement system established by section 411.5 and shall be conducted in accordance with the directives of the board of trustees. However, the prohibitions of section 216.6, subsection 1, paragraph “d”, regarding tests for the presence of the antibody to the human immunodeficiency virus shall not apply to such examinations. The board of trustees may change the medical protocols at any time the board so determines. In the event of a conflict between the medical protocols established under this section and the minimum entrance requirements of the Iowa law enforcement academy under section 80B.11, the medical protocols established under this section shall control. The physical examination of an applicant for the position of police officer, police matron, or fire fighter shall be conducted after a conditional offer of employment has been made to the applicant. An applicant shall not be discriminated against on the basis of height, weight, sex, or race in determining physical or mental ability of the applicant. Reasonable rules relating to strength, agility, and general health of applicants shall be prescribed. The costs of the physical examination required under this subsection shall be paid from the trust and agency general fund of the city.

(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.

Sec.

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.

35. Section 411.6, subsection 5, paragraph b, Code 2019, is amended to read as follows:

5.

b. If a member in service or the chief of the police or fire departments becomes incapacitated for duty as a natural or proximate result of an injury or disease incurred in or aggravated by the actual performance of duty at some definite time or place or while acting, pursuant to order, outside the city by which the member is regularly employed, the member, upon being found to be temporarily incapacitated following a medical examination as directed by the city, is entitled to receive the member’s full pay and allowances from the city’s general fund or trust and agency fund until reexamined as directed by the city and found to be fully recovered or until the city determines that the member is likely to be permanently disabled. If the temporary incapacity of a member continues more than sixty days, or if the city expects the incapacity to continue more than sixty days, the city shall notify the system of the temporary incapacity. Upon notification by a city, the system may refer the matter to the medical board for review and consultation with the member’s treating physician during the temporary incapacity. Except as provided by this paragraph, the board of trustees of the statewide system has no jurisdiction over these matters until the city determines that the disability is likely to be permanent.

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.

Sec.

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.

36. Section 411.15, Code 2019, is amended to read as follows: 411.15 Hospitalization and medical attention. Cities shall provide hospital, nursing, and medical attention for the members of the police and fire departments of the cities, when injured while in the performance of their duties as members of such department, and shall continue to provide hospital, nursing, and medical attention for injuries or diseases incurred while in the performance of their duties for members receiving a retirement allowance under section 411.6, subsection 6. Cities may fund the cost of the hospital, nursing, and medical attention required by this section through the purchase of insurance, by self-insuring the obligation, or through payment of moneys into a local government risk pool established for the purpose of covering the costs associated with the requirements of this section. However, the cost of the hospital, nursing, and medical attention required by this section shall not be funded through an employee-paid health insurance policy. The cost of the hospital, nursing, and medical attention required by this section shall be paid from moneys held in a trust and agency fund established pursuant to section 384.6, the city’s general fund or out of the appropriation for the department to which the injured person belongs or belonged; provided that any amounts received by the injured person from any other source for such specific purposes, shall be deducted from the amount paid by the city under the provisions of this section.

c. If the county has an internet site, in addition to 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.

37. Section 441.45, Code 2019, is amended by adding the following new subsection:

NEW SUBSECTION.

3. The county assessor of each county and each city assessor shall, at the same time as the transmission of the abstract to the department of revenue under this section, transmit to the county auditor an abstract containing the information required under subsection 1 by taxing district.

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:

38. REPEAL. Sections 331.424, 331.425, 331.426, and 384.8, Code 2019, are repealed.

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:

39. APPLICABILITY. This division of this Act applies to fiscal years beginning on or after July 1, 2020. DIVISION II PROPERTY TAX SYSTEM ADVISORY GROUP

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 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.

40.

NEW SECTION. 421.1B Property tax system advisory group created —— duties.

1. The director of revenue shall establish a property tax system advisory group to comprehensively analyze the existing property tax laws, rules, programs, and systems of this state, including but not limited to the statutory changes contained in this Act, classification of property, assessment limitations, property valuation methodologies, property tax credits and exemptions for low-income and elderly property owners, and the methodologies of calculating property tax rates. Based on the analysis, the advisory group shall annually provide input, feedback, and recommendations to the department of revenue and to the general assembly. Recommendations made by the advisory group shall focus on reforms that will increase transparency and fairness and reforms that will simplify property tax systems. Recommendations of the advisory group may include statutory changes, administrative rule changes, or governmental subdivision policy and implementation changes.

2. The property tax system advisory group established by the director of revenue shall include, at a minimum, all of the following members:

a. One member from an association representing Iowa counties.

b. One member from an association representing Iowa cities.

c. One member from an association representing boards of directors of Iowa public schools.

d. One member from an association representing agricultural property taxpayers.

e. One member from an association representing industrial property taxpayers.

f. One member who is a residential property taxpayer.

g. The director of the department of management or an employee of the department of management designated by the director of the department of management.

h. The director of revenue or an employee of the department of revenue designated by the director of revenue.

i. The director of the economic development authority or an employee of the authority designated by the director of the economic development authority.

j. One member from an association representing county and city assessors of this state.

3.

a. The department of revenue, in consultation with the department of management, shall provide staffing assistance to the advisory group.

b. The advisory group shall adopt rules relating to its procedures and meetings under the general supervision of the director of revenue.

9. Section 331.434, subsection 7, Code 2019, is amended to read as follows:

4. The activities of the advisory group, including all recommendations adopted, shall be included in an annual report. The first such report shall be submitted to the department of revenue and the general assembly no later than January 1, 2020, with subsequent reports developed and submitted by January 1 each year thereafter until January 1, 2025.

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.

41. EFFECTIVE DATE. This division of this Act, being deemed of immediate importance, takes effect upon enactment. DIVISION III ELDERLY PROPERTY TAX CREDIT

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.

42. Section 425.1, subsection 1, paragraph a, Code 2019, is amended to read as follows:

a. A homestead credit fund is created. There is appropriated annually from the general fund of the state to the department of revenue to be credited to the homestead credit fund, an amount sufficient to implement this chapter subchapter.

11. Section 331.436, Code 2019, 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 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.

43. Section 425.17, subsection 2, Code 2019, is amended to read as follows:

2.

a. “Claimant” means either any of the following:

(1) A person either filing a claim for credit or reimbursement under this subchapter who has attained the age of sixty-five years on or before December 31 of the base year or who is totally disabled and was totally disabled on or before December 31 of the base year or filing a claim for reimbursement under this subchapter who has attained the age of sixty-five years on or before December 31 of the base year and who is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate.

(2) A person filing a claim for credit or reimbursement under this subchapter who has attained the age of twenty-three years on or before December 31 of the base year or was a head of household on December 31 of the base year, as defined in the Internal Revenue Code, but has not attained the age or disability status described in paragraph “a”, subparagraph (1) or the age status and eligibility criteria of subparagraph (3), and is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate, and was not claimed as a dependent on any other person’s tax return for the base year.

(3) A person filing a claim for credit under this subchapter who has attained the age of sixty-five years on or before December 31 of the base year, who has a household income of less than two hundred fifty percent of the federal poverty level, as defined by the most recently revised poverty income guidelines published by the United States department of health and human services, and is domiciled in this state at the time the claim is filed or at the time of the person’s death in the case of a claim filed by the executor or administrator of the claimant’s estate.

b. “Claimant” under paragraph “a”, subparagraph (1) or (2), includes a vendee in possession under a contract for deed and may include one or more joint tenants or tenants in common. In the case of a claim for rent constituting property taxes paid, the claimant shall have rented the property during any part of the base year. In the case of a claim for property taxes due, the claimant shall have occupied the property during any part of the fiscal year beginning July 1 of the base year. If a homestead is occupied by two or more persons, and more than one person is able to qualify as a claimant, the persons may each file a claim based upon each person’s income and rent constituting property taxes paid or property taxes due.

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 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.

(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.

44. Section 425.23, subsection 1, Code 2019, is amended by adding the following new paragraph:

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.

NEW PARAGRAPH.

5.

c. The tentative credit for a claimant described in section 425.17, subsection 2, paragraph “a”, subparagraph (3), shall be the greater of the following:

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.

(1) The amount of the credit under the schedule specified in paragraph “a” of this subsection if the claimant was a claimant as defined in section 425.17, subsection 2, paragraph “a”, subparagraph (1), filing for a credit under paragraph “a” of this subsection.

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.

(2) The difference between the actual amount of property taxes due on the homestead during the fiscal year next following the base year minus the actual amount of property taxes due on the homestead during the first fiscal year for which the claimant filed a claim for a credit calculated under this paragraph “c” and for which the property taxes due on the homestead were calculated on an assessed valuation that was not a partial assessment and if the claimant has filed for the credit calculated under this paragraph “c” for each of the subsequent fiscal years after the first credit claimed.

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 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.

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45. Section 425.23, subsection 4, paragraph a, Code 2019, is amended to read as follows:

a. For the base year beginning in the 1999 calendar year and for each subsequent base year, the dollar amounts set forth in subsections subsection 1, paragraphs “a” and “b”, and subsection 3 shall be multiplied by the cumulative adjustment factor for that base year. “Cumulative adjustment factor” means the product of the annual adjustment factor for the 1998 base year and all annual adjustment factors for subsequent base years. The cumulative adjustment factor applies to the base year beginning in the calendar year for which the latest annual adjustment factor has been determined.

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:

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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 be transmitted to the county auditor, who shall complete the certificates and transmit a copy of each to the department of management.

46. Section 425.24, Code 2019, is amended to read as follows: 425.24 Maximum property tax for purpose of credit or reimbursement. In For claimants under section 425.17, subsection 2, paragraph “a”, subparagraphs (1) and (2), and for the calculation under section 425.23, subsection 1, paragraph “c”, subparagraph (2), in any case in which property taxes due or rent constituting property taxes paid for any household exceeds one thousand dollars, the amount of property taxes due or rent constituting property taxes paid shall be deemed to have been one thousand dollars for purposes of this subchapter.

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.

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47. Section 425.39, Code 2019, is amended to read as follows: 425.39 Fund created —— appropriation —— priority. The elderly and disabled property tax credit and reimbursement fund is created. There is appropriated annually from the general fund of the state to the department of revenue to be credited to the elderly and disabled property tax credit and reimbursement fund, from funds not otherwise appropriated, an amount sufficient to implement this subchapter for claimants described in section 425.17, subsection 2, paragraph “a”, subparagraph subparagraphs (1) and (3).

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.

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48. APPLICABILITY. This division of this Act applies to claims under chapter 425, subchapter II, filed on or after January 1, 2020. DIVISION IV STATE APPRAISAL MANUAL

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

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49. 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 a county or city assessor upon request and demonstration of substantial hardship by an assessor.