Relating to local government property taxes, financial authority, operations, and budgets, modifying certain transit funding, property tax credits and exemptions, and appropriations, requiring certain information related to property taxation to be provided to property owners and taxpayers, modifying provisions relating to fees for driver’s licenses and nonoperator’s identification cards, modifying provisions relating to certain writing fees, modifying certain bonding procedures, making penalties applicable, and including effective date, applicability, and retroactive applicability provisions

The bill provides that for property taxes due and payable in fiscal years beginning on or after July 1, 2024, if the amount of property taxes otherwise calculated to be due and payable on a qualified parcel of residential property or agricultural property exceeds 103 percent of the actual amount of property taxes due and payable on the parcel in the immediately preceding fiscal year, such amount due shall be reduced. Similarly, if the amount of property taxes otherwise calculated to be due and payable for such fiscal years on a qualified parcel of commercial property or industrial property exceeds 108 percent of the actual amount of property taxes due and payable on the parcel in the immediately preceding fiscal year, such amount shall be reduced. If, however, improvements or renovations, not amounting to new construction, occur on the property during the base year, as defined in the bill, the threshold amount of property taxes shall be the applicable threshold percentage applicable to the property plus the percentage of the parcel’s taxable value attributable to the improvements or renovations. Improvements or renovations do not include normal and necessary repairs to an existing building or improvement, not amounting to structural replacements or modifications. Under the bill, “property taxes” means annual ad valorem taxes imposed on the parcel which are collectable by the county treasurer following application of all applicable exemptions and credits, and shall not include special assessments, amounts levied under Code chapter 468, or taxes under Code chapter 435. “Property taxes” also does not include taxes levied as the result of a property tax levy approved at election or that portion of any property tax levy imposed that is for the payment of principal and interest on bonds or other indebtedness the issuance of which was approved at election, including refunding bonds issued for the repayment of bonds that were approved at election. The limitations established in the bill apply to qualified parcels.10; or (6) the parcel’s classification is different from the base year. If the total amount of property taxes due and payable on the parcel exceeds the applicable threshold for the parcel under the bill, the amount of property taxes due and payable to each taxing authority that certified for levy property taxes on the parcel in excess of the applicable threshold percentage of such amount levied by that taxing authority on the parcel in the immediately preceding fiscal year shall be reduced by the amount by which the parcel’s total amount of property taxes due and payable for all taxing authorities exceeds the applicable threshold for the parcel. The amount of the reduction is proportionately applied among the various levies for property taxes, or portions thereof, of those taxing authorities that certified for levy property taxes on the parcel in excess of the applicable threshold percentage of such amount levied by that taxing authority on the parcel in the immediately preceding fiscal year.5. The bill makes corresponding changes to various other provisions of the Code relating to the calculation and collection of property tax amounts. DIVISION III —— LOCAL GOVERNMENT BUDGETS. The bill modifies provisions relating to the process of approving local government budgets. The bill amends certain municipality budgeting procedures under Code chapter 24.2, includes public bodies or corporations that have power to levy or certify a tax or sum of money to be collected by taxation, except a county, city, drainage district, township, or road district. The bill requires each municipality with property tax revenues of $5,000 or more in the immediately preceding fiscal year to direct the county treasurer to send to each owner or taxpayer within the municipality by regular mail an individual notice containing specified information relating to property taxes certified for the current fiscal year and the applicable levy rates, proposed property tax amounts for the budget year and the applicable levy rates, the effective property tax levy rates, as defined in the bill, reasons for any proposed increases, and property assessment and property tax information related to the owner’s or taxpayer’s property. The bill also provides that such municipalities must also include such information, excluding specific owner or taxpayer information, in the notice of the public hearing on the municipalities’ budget estimates. The bill establishes similar requirements for counties under Code chapter 331, townships under Code chapter 359, and cities under Code chapter 384. The bill also provides that if all applicable information is available in a timely manner, the county treasurer may consolidate all required individual notices required for the various local governments under the bill so that all applicable notices appear on a single individual notice for each owner or taxpayer.3.2, subsection 3, which would relieve a political subdivision from complying with a state mandate if funding for the cost of the state mandate is not provided or specified. Therefore, political subdivisions are required to comply with any state mandate included in the division of the bill. The division of the bill applies to county, city, township, and municipality budgets for fiscal years beginning on or after July 1, 2024. DIVISION IV —— BOND ELECTIONS. The bill modifies the date upon which elections must be held for the approval of the issuance of bonds by political subdivisions of the state.2, subsection 4, or specified in other provisions of law. The bill provides that for any political subdivision of this state, if the special election is in whole or in part for the question of issuing bonds or other indebtedness, the first Tuesday after the first Monday in November of each even-numbered year, which is the date of the general election. The bill makes corresponding changes to various other Code chapters governing the approval of the issuance of bonds at election. The bill also provides that in addition to any other notice related to the election required by law to be published, posted, or provided, if the election is subject to the new date requirement, the commissioner of elections (county auditor) shall not less than nor more than days before the day of each election mail to each registered voter of the applicable jurisdiction a notice of the election that includes the full text of the public measure to be voted upon at the election.3.2, subsection 3, which would relieve a political subdivision from complying with a state mandate if funding for the cost of the state mandate is not provided or specified. Therefore, political subdivisions are required to comply with any state mandate included in the division of the bill. The division of the bill applies July 1, 2023, for elections on propositions relating to the issuing of bonds or other indebtedness occurring on or after that date.